The India Report
Comment of the Day

September 01 2011

Commentary by Eoin Treacy

The India Report

Thanks to Deepak Lalwani for this edition of his popular report. It is posted without further comment but here is a section on corruption:
Will social activist Mr Anna Hazare's successful fasting tactic to force the Government to accept key clauses for an anti-corruption bill see the end of graft soon in India? No. The bill is no magic wand. But, it is a very useful starting mechanism to improve governance in a country plagued by endemic corruption that affects all strata of society. And, according to some economists, costs the country 1-2% growth in GDP. This cost is over and above the loss of 1 -2% in GDP due to poor infrastructure. Foreign investors are heartened by a move finally being made to cut corruption levels, which in turn should prune the maze of bureaucracy which aids and nurtures such corruption. The anti-corruption bill originated about 40 years ago and was until now cleverly shelved by politicians and bureaucrats who would most be held accountable and brought to book. Were it not for the rising anger of millions of a growing middle class that supported Mr Hazare, out-of-touch- politicians would have played further political football with this bill to make it toothless against corrupt high office. However, the Government's dithering response to Mr Hazare, briefly arresting him before releasing him after a protestor backlash, only confirmed how out of touch elderly ministers were with the mood of a people increasingly frustrated and angered at the political class. Corruption in India, according to Transparency International's corruption index, has worsened over time. In 2010 India ranked 87th (level with Albania) vs. 84th in 2009 and 69th a decade ago.


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