The Many Colors of Indian Corruption

The recent Mumbai mayhem has triggered a huge outpouring of strenuous resentment about the many things that Indian’s had earlier tolerated. There are now outraged words about politicians too corrupt to manage the state, fat cops too busy with their `hafta’ to worry about security, corruption in the procurement process that makes supplies of modern weapons, flak jackets, communications systems, etc., endlessly delayed and on how the endemic corruption has so deeply undermined all India’s services and motivation to perform. There are now protest at this widespread corruption that people had earlier considered so routine that it was no longer an evocative election issue. But few people really understand the nature of this insidious octopus.

Few people realize that though there are many honest officers in India’s Government the Government is 100% corrupt. It is impossible to do any business with the Government without the passing of some gratifications or favours but the ten Rupee notes to the chaprasi at the door or the Diwali gifts to their bosses are not bribes. They are simply regarded as tokens of regard because the recipients are not expected to guarantee any favours in exchange. They usually ensure nothing beyond access, a good hearing and some friendly advice.

These gratifications are actually a hangover of the very old Persian system of Nazrana that marked the pre-Mughal, Mughal and subsequent periods in the entire sub continent. Every seeker of favours from an Emperor, his Emirs or other officials was expected to offer a tribute to a superior and these were given and accepted with grace and absolutely no sense of shame.

Dealing with the Indian Government cannot unfortunately be done at a single point, through one window or by one officer regardless of rank. The vastly over rated system of checks and balances inherited from the British usually sees a file moving slowly and circuitously from receiving clerk to dealing assistant, section officer, under secretary, joint secretary and sometimes to a minister before orders are passed back step by step down the chain. As the file often concerns other departments or ministries like law, energy, environment or defence, the concerned state Government, etc., the file may have to be seen, noted and commented upon by fifty or more officers before it can be finally cleared.

The process is very demanding of time and effort and even the most determined politician or senior officer has great difficulty in getting the files to move faster. Unsackable babus have nothing to fear by delay for they know that if they do nothing, they do nothing wrong. There is no accountability for inaction of delay. It is only bold action that disturbs the tranquil bureaucratic flow that can lead to embarrassing departmental inquiries, Public Account Committee investigations and even questions in Parliament.

In the circumstances, no honest Indian or foreign company can do any business involving the Government in India without agents or liaison officers who follow the progress of their files and gently lubricate it through the rough spots. As most reputed companies are unwilling or sometimes even legally barred from this onerous task they have to rely on agents to achieve these necessary and valuable services out of their fees or commissions that have to provide for them.

Proof of the absurdity of the system is evident from the fact that every state Government has large liaison staffs in the capitol to steer their own papers through the complicated corridors of power. Only the most naive will believe that it was possible for Bofors or for any other armament, power, highway, port, shipping or infrastructure company to do business with Government without using such channels and paying for them.

A slightly less honest system of corruption is prevalent throughout all civic, court or rural services. The official rates fixed for land measurements, registrations, mutations, water and electricity connections, etc., are so hopelessly out of date that the petty officials augment these and their usually poor salaries by charging quite institutionalised higher rates. These are willingly paid by the most upright of citizens and the recipients of these monies or favours have absolutely no feeling that they are doing anything morally wrong. Such openly acknowledged petty corruption encourages the more greedy and venal to expect gratifications as a standard perk of Government service.

Many petty officials can only get their appointments into the police, forest, educational, electricity or other departments or as inspectors of food, health or other services by paying bribes and so feel morally justified in demanding bribes to defray the funds they have earlier had to pay. Others in more sensitive departments like excise, sales tax or income tax often cannot resist the temptation of exploiting the power of their positions. It very soon becomes endemic for if one official is fearlessly making money the others are made to feel like fools by their colleagues and even their families if they should dare to be honest.

Needless to say there are dishonest companies who offer big bribes. These are not gratifications but clear contracts where an official or politician is offered large sums in exchange for lucrative contracts or concessions at advantageous terms. In other cases grasping politicians or officials will deliberately create obstacles to an approved project and stop it from proceeding unless they receive substantial sums. When a government changes the new incumbents will automatically assume that their predecessors took bribes and will stall things until their demands are satisfied.

A recent study on corruption in Asia by the Economist did not find that the rate of corruption in India higher than in some other Asian countries but it found that India’s corruption was the most inefficient. In China, if a politician or officer accepted a bribe he could usually get the work done through a much simpler bureaucratic system and if he is unable to deliver will usually refund the money. The bribe givers can officially provide for corruption and do not have to account for 15% of their expenditure. In Indonesia and Thailand, bribe takers often give official receipts. Bribes are simply viewed as speed money untainted by any moral judgement.

The reason why corruption thrives in India is because of the complexity of Government itself with its huge edifice of rules and laws that make it impossible to get the simplest sanctions without using many helpful officials to find a way through the maze. These often contradictory regulations are a godsend to venal officials and politicians who can easily find barriers for delay and rejection.

Corruption is a big political issue and every political party pretends to be holier than the others in their claims about running a clean and transparent administration. But, unless the complex multi layered system of Government inherited from the British is simplified, corruption will continue to thrive. This colonial model resulted in the steady decline of colonial countries until Britain, Singapore, Canada, Australia and others stripped them down to make them efficient enough to compete with substantially unfettered free market economies. But in India, Pakistan, Srilanka and Bangladesh, the red tape has become thicker over the years with the result that this entire region is now a dark hole on the face of a dynamic globe.

A 100% corrupt Government will naturally try to ensure that reforms do not take place and that corruption continues. They will be aided by political parties who are not interested to change the system because politicians can only get their good and bad work done through pliable Government servants. No party has the courage to take such steps as these would undermine the entire system of political patronage.

Every politician has to raise political funds for their political campaigns so even the personally honest ones have to condone corruption. Funds are needed to feed and transport several hundred party workers over the poll period and supply posters and polling booth stationary to say nothing of liquor or other inducements for some of their supporters and competitive politics gets more expensive every year. But politicians have uncertain futures so all their collections do not go to their parties and some is retained in their own accounts in case they do not get party tickets and have to go it alone. This practice legitimizes the amassing of personal wealth by every politician who despite often humble origins quickly becomes seriously wealthy. The practice by every party is so openly known that it no longer raises any eyebrows.

Regardless of political rhetoric, corruption will continue until India can push through drastic administrative reforms. This means reducing the many layers of Government, retiring about 75% of their subordinate staffs, slashing the rules and laws and making Government officials accountable for delays and failures to achieve their targets. If any Government can achieve such reforms it would release the nation’s huge reservoirs of creativity and enterprise. It would quickly propel India to its rightful place as one of the great countries of the world. As this is unlikely to happen India will not achieve its potential. Poverty will persist, economic growth will be disappointing and we will continue to agonise about our chronic failures by blaming others, our politicians and our endemic corruption.