An anti-corruption herd…

Times like this, when Arnab Goswami (who is the self-proclaimed modern messiah of great journalism), is trying very hard to prove that the ‘anti-corruption‘ movement in India is now going international – leave me rather astounded. And frankly, I’m not astounded at anything new. People love causes. Wearing pretty T-shirts with snazzy ‘anna’ slogans, a couple of afternoons out in the sun, the excitement of ‘hey I’m being arrested’ can all be very exciting. Also very juvenile – but never mind that.

Here’s the real question, does more litigation/the enactment of more laws solve corruption?  The best question is however this; is corruption even a problem? Of course, this is a terrible question to be asking. It surely means that I must be corrupt, support corruption or at any rate be unwilling to do my bit to ‘root-out’ the unforgivable sin of corruption. I’m going to go out on a limb and say yup, all of those things are true.

Here’s why: Of course I am corrupt, like every other Indian I have been part of a system that has forced me to, against my wishes (nobody likes to part with money, nothing to do with nobility), to pay a bribe in order to get the job done. Of course its wrong and it doesn’t matter that if I hadn’t paid the bribe, I wouldn’t have gotten a passport.  I do support corruption, in that —  my understanding of it being a ‘problem’ is completely different. Am I unwilling to do my bit to ‘root out’ corruption, yes absolutely – because the movement is ill-conceived.

To begin with ‘corruption’ is not a problem, its a symptom of a larger problem. By waging war against a symptom, one isn’t really sorting anything out – the disease you see, is still around. In this case, the disease is poorly-designed incentives.

As Nitin Pai eloquently writes (and thankfully relieves me of explaining the theory behind incentives):

The idea of a ‘Jan Lok Pal’ is flawed and profoundly misunderstands the causes and solutions of corruption in India. It seeks to create another chunk of Government, more processes and rules, to solve a problem that, in part, exists because of too many chunks of Government, too many processes and rules.

If the ‘Jan Lok Pal’ presides over the same system that has corrupted civil servants, politicians, anti-corruption watchdogs, judges, media, civil society groups and ordinary citizens, why should we expect that the ombudsman will be incorruptible? Because the person is handpicked by unelected, unaccountable ‘civil society’ members? Those who propose that Nobel Laureates (of Indian origin, not even of Indian citizenship) and Ramon Magsaysay Award winners should be among those who pick the Great Ombudsman of India — who is both policeman and judge — insult the hundreds of millions of ordinary Indian voters who regularly exercise their right to franchise. For they are demanding that the Scandinavian grandees in the Nobel Committee and the Filipino members of the Magsaysay foundation should have an indirect role in selecting an all-powerful Indian official.

The argument that people should be involved in drafting legislation is fine, even if it misses the point that the Government is not a foreign entity but a representative of the people. It is entirely another thing to demand that the legislation drafted by an self-appointed, unaccountable and unrepresentative set of people be passed at the threat of blackmail. If we must have representatives of the people involved in law-making, we are better off if they are the elected ones, however flawed, as opposed to self-appointed ones, whatever prizes the latter might have won.

The ‘Jan Lok Pal’ will become another logjammed, politicised and ultimately corrupt institution, for the passionate masses who demand new institutions have a poor record of protecting the existing institutions. Where were the holders of candles, wearers of Gandhi topis and hunger-strikers when the offices of the Chief Election Commissioner, the Central Vigilance Commissioner and even the President of the Republic were handed out to persons with dubious credentials? If you didn’t come out to protest the perversion of these institutions, why are you somehow more likely to turn up to protest when a dubious person is sought to be made the ‘Jan Lok Pal’?

But this is us. Given this reality, the solution for corruption and malgovernance should be one that does not rely on the notoriously apathetic middle classes to come out on the streets. The solution is to take away the powers of discretion, the powers of rent-seeking from the Government and restore it back to the people. This is the idea of economic freedom. Societies with greater economic freedom have lower corruption. I have long argued that we are in this mess because we have been denied Reforms 2.0.

How can we have Reforms 2.0 if “those politicians” are unwilling to implement them? The answer is simple: By voting. Economic reforms are not on anyone’s political agenda because those who are most likely to benefit from them do not vote, and do not vote strategically

So here’s the solution; don’t keep adding layers upon layers of legislation!!

Legislation fails catastrophically (what lawyers like to dismiss as implementation problems) when it doesn’t account for incentives. India is known for fantastic legislation and implementation failure. However, implementation failure, like other forms of market failure, are signalling devices. They’re telling you something. They’re saying, for example, systems where clerks are under-paid sustain systems where bribes need to be paid. Systems where accountability is not structurally built-in allows for large-scale corruption…

In the meantime, if you are pro-Anna – consider this. What should you be supporting? Well-designed policy or one man holding a government to ransom?  For further reading consider reading: Why the Lok Pal is a bad idea.

When Mallika Sarabhai says that  “we live in the most exciting times for democratic India, at least in the last two decades”,  I wonder what she is referring to?  The fact that so many Indians think turning out in hippy t-shirts singing songs is the equivalent of a movement, or that the stalwarts of this ‘movement’ consider it to be truly ‘mass’ given that all of India has internet connectivity (sic), or the fact  that India’s need for heroes (read Anna) has grown so much that we should consider this the greatest signl of a fantastically dynamic democracy.

4 thoughts on “An anti-corruption herd…

  1. varna,

    The solution for corruption according to you seem to be in the economic freedom…. making market work perfectly would solve the problem… But i have few questions

    1) Dont you think the period (post 90s) which has witnessed economic reform, relatively free market is the period of unimaginable corruption in terms of scale and volume of corruption.. There is detailed story on it.

    2) The concept of rent seeking is misplaced here, because one of the main reason for opening up the economy is to get rid of earlier licence-quota and bureaucratic regime.. however, the erstwhile bureaucrats only became bosses of the new companies which emerged in the said period….

    Therefore, the problem for corruption lies somewhere else so does the solution. Perhaps the problem lies in the structure of society which are inflicted with divide of class, caste and gender.

    Regards
    kalai

    Like

  2. Agreed. The movement should raise awareness with the masses on corruption, how to effectively stop paying bribes, ways of overcoming the corrupted system and most importantly, like you said, the root cause – having better paid and accountable bureaucracy. Right now, its been made to look like Anna vs Govt whereas every other political party is shares the same view on Lokpal.

    Like

Comments are closed.