HT : Removal of corruption must top our agenda : Oct 13, 2007

Removal of corruption must top our agenda

 Bimal Jalan Former RBI governor

I MAGINE THE India that can be without corruption. It may sound far-fetched.
However, I strongly believe that if appropriate reforms in our political and
bureaucratic systems are made, India can be free of at least the pervasive
corruption about which everyone, including readers of Hindustan Times, are
familiar.

Politicians, including chief ministers, are found with wealth accumulation
of unprecedented magnitude. Bureaucrats, including chief secretaries are
reported in newspapers of similarly amassing vast quantities of undeclared
land, money and other assets. Any ordinary citizen who has to deal with any
administrative or government office for even the simplest of task reports
about corruption.

What is particularly striking in India is that despite the great progress
that we have made in ensuring freedom of speech and media, the prevalence of
corruption is accepted in our daily lives as unavoidable.
Looking ahead, as part of the laudable initiative taken by this newspaper
about the India of the future and what can be done with effective
leadership, I believe that, all of us, whatever our professions, should
deliber- ate on what can be done to eliminate acceptance and prevalence of
corruption, particularly political and bureaucratic corruption.
I should emphasise that the demand for corruption creates its own supply .
If corruption is demanded, those who supply it from industry trade and oth ,
er professions generally can have access to unintended benefits.
In thinking about what can be done, the first priority to my mind is to
reduce the powers that we confer on the political and administration in all
spheres of the economy It is true that controls have been lift . ed, the
economy has been liberalised and trade opened up. Yet, according to all
surveys, including the recent one by the World Bank on doing business, India
ranks at the bottom of the lead table. The reason for this is, while
macro-level constraints and controls have been reduced, at the micro level
there is nothing that can be practically done, (except perhaps telephone
calls), without approval of multiple agencies of the government, which in
turn are controlled by the politicians, on the ground that they are elected
representatives of the people.

Political supervision over policy matters that are of concern to the people
is certainly desirable and necessary It is, however, not clear, why say land
al . , lotment, location of industries or preferential treat ment in terms
of power should be decided at the lev el of political authorities.
It is also not clear why an independent superviso ry network for public
sector undertakings that are dominant in certain sectors cannot be created
with due accountability with the committees of parlia ment and the state
assemblies. In other words, ac countability may be made to a collective body
of rep resentatives rather than to individuals who head dif ferent
ministries and take specific decisions in all ar eas.

Anybody familiar with our bureaucratic system will testify that on any
matter of importance, multi ple ministries and administrative departments
are involved, resulting in enormous delays. My favourite example in this
regard is that if there was a propos al to set up a sports facility for
young students of rural and urban areas, it would require the approval of at
least 10 ministries including the ministries of women and child welfare,
social em powerment, rural development, urban development and sports, in
addition to, of course, the finance ministry and the planning commission.
Is it not possible to reduce this quagmire and assign specific respon
sibilities to a particular ministry with respect to different classes of
people to whom the programme is likely to be beneficial? There are many many
ar , eas where reforms can be brought about including taxation, adherence to
various laws and filing of returns of various kinds. In most of these areas,
self-certification would provide a work able and more effective alternative.
Let me stop here. I share the view that India is like ly to emerge as one of
the most dominant and fastest growing economies in the world. I also share
the view that it will be an economic challenge before us for removal of
poverty providing of social security , and generating faster employment.
At the same time I believe that if India is to real ize its full potential,
bringing about institutional re forms to reduce the demand and supply of
corruption would be an important challenge for the future.

(Bimal Jalan, Rajya Sabha member and former RBI governor is one of India's ,
best-known economists) INDIA IS LIKELY TO EMERGE AS (A) DOMINANT ECONOMY.
(BUT) IT WILL BE AN ECONOMIC CHALLENGE (TO) REMOVE POVERTY...


Publication :HT; Section : Summit; Pg : 12; Date : 13/10/07
URL :
http://epaper.hindustantimes.com/artMailDisp.aspx?article=12_10_2007_012_002&typ=0&pub=264