Revamp policy to tackle corruption
Dec 19 2011
—Karl Kraus
Revolutions occur when people challenge the status quo, when they refuse to be intimidated any longer. Revolutions have been a part of the world history and have brought about metamorphosis in politics and society. Are we witnessing a revolution in India against corruption? While Anna Hazare has helped bring the issue of corruption to the nation’s attention, team Anna cannot do it on their own. There has been a call for the government to accept their demands or quit. I cannot call that rational. We need leaders who will take this country forward; we cannot afford India to be thrown back into the middle ages. We are not immune to the slowdown that has set in the west, our growth projections are being revised downwards, the rupee is at an all time low against the dollar, inflation and interest rates continue to remain high — in this scenario can we afford to have productive time wasted?
It is said that some sensible people exited the stock market in the US, when a shoeshine boy gave them stock tips. The scene before the big crash was described by someone: “Taxi drivers told you what to buy. The shoeshine boy could give you a summary of the day’s financial news; an old beggar gave tips...” We seem to be at the same stage where governance in India is concerned. Everyone wants to be involved in making the law. We call ourselves a civil society yet we seem to be obsessed with the idea of punishment. I am personally disturbed with the high level of corruption. We need to encourage the government to find a solution to this disease, which affects every facet of our lives. We need to understand the root cause; we do not need rhetoric but a planned and balanced approach to an issue.
Corruption is rampant in government circles. There is an expectation of bribe to get anything done. Yes, there are a few honest people who hold their own but it is easy to succumb to the system. Let us go back 25 years and compare salaries in the government and private sectors. A government job was preferable in those days as it brought home a reasonable salary and job security. Today it is a different story. What is the quality of life of a policeman? If we want people to perform these jobs, we have to pay at par with rates in the private sector and then hold people accountable for performance. Parity must be achieved on both levels — productivity and pay. Modern management skills and techniques need to be introduced. A good working environment and infrastructure need to be provided to the staff. If the government wants to make its machinery efficient it needs to take some hard calls — this is called tough love, which the government must demonstrate for the country. As Thomas Jefferson said, “Do you want to know who you are? Don’t ask; act. Action will delineate and define you.”
We need to create an environment that stops the generation of black money and discourages its use — through a major policy revamp. Laws should be brought out where political donations are allowed and need to be accounted for. This will help eliminate a huge source of black money. A scrutiny of real estate transactions will throw up names of those who stash it in property. The other big source is agricultural income. A fair proposition would be to start taxing agriculture income above certain limits. Wealthy farmers will need to pay taxes as any other citizen; fake agriculturists will disappear. With the new Land Acquisition Bill, the farmer will get a fair share of value of his property. It should be taxed as capital gains, as it would be for any other person.
The government had wanted to allow 51 per cent FDI in multi brand retail which was greatly opposed. Whose victory was it? This was the victory of middlemen who, in my view, are parasites and are destroying the moral fabric of this country. What explains the difference between what farmers earn and what consumers pay? If FDI in retail were allowed, the consumer would get cheaper products and the farmer better realisation for his produce. The SME sector would have benefited, as it would have found an outlet not only on shelves within the country but also on global shelves. Let’s all introspect. Huge amount of infrastructure would have been built at the back end, helping to reduce wastages. Along with other reforms, this would have helped propel India to a new level. The mood would have been buoyant. Today we are in pause mode as if the world has come to a halt and everything around us is decaying.
The news of the reinstatement of pension of an ex-cop convicted of molesting a 14-year-old is shocking and demoralising. What more does one need to say about the attitude and aptitude of the powers that be? What will it take to change the DNA of this country?
The time has come for everyone to join hands. Let the march against corruption be genuine. Let us start with ourselves. We don’t need to fill the jails in the country to root out corruption — we need to release evil from society and rid ourselves of the factors that cause corruption. As Bess Myerson said, “The accomplice to the crime of corruption is our indifference.”
(The writer is head of advisory services, KPMG, India)




















Post new comment