Saturday, May 30, 2009

THE INVISIBLE HAND IN CORRUPTION

This article picks up from where the last article ended. It is another example of the hypocrisy of the Indian elite classes. The issue of corruption is one that frequently pops up in many debates and discussions in the media and in other elite circles of society. I am quiet frankly dismayed over the criticism that is constantly showered on the “ruling class”, the bureaucracy and the political class, for the prevalence of widespread corruption in India. It seems like a lot of people are forgetting the fact that there are 2 hands involved in corruption and that the source of corruption is as much responsible for the existence of the phenomenon as the destination. Somehow in the eyes of most of these critics it appears as if one of the hands, that of the source, is often invisible. However it is not too difficult to understand this partial blindness exhibited by a majority of the elite classes. They fail to recognize the source of corruption because this social evil actually emanates from the urban elite themselves. In fact, it is extremely ironic that the people who are directly responsible for the perpetration and the prevalence of corruption in India are also its most vehement critics.

Let me cite a couple of examples to make my point clear. First let me consider one case of corruption which we get to see fairly regularly almost on a day to day basis virtually anywhere in the country. Take the example of the traffic constable. Here is a person who spends ten hours everyday in the heat, the dust, the pollution and the traffic daring harsh weather only to make a meager sum of money which fails to ensure a decent life for him and his family. I think this situation of his along with the power that is vested in him prompts him to misuse the power for personal monetary gains and considering his pathetic situation it seems quiet justified particularly when you also factor in his lack of quality education which restricts his knowledge and hence makes him too ignorant to contemplate/understand the consequences of his actions on society at large. On the other hand we have the “bade baap ke bigde bete” driving air-conditioned cars and sports bikes violating traffic rules and bribing the traffic police in a bid to save a few hundred bucks.

In fact bribing the traffic police is actually considered “cool” and any person who has any principles and thus, offers to pay the legal fine is perceived to be foolish among his peers. These are individuals who are educated in esteemed institutions and are well aware of the ramifications that their actions would have on society as a whole. Undoubtedly, they are the source of corruption in this case. However, the person who is always criticized most is the poor traffic constable who fails to provide a good livelihood for his family despite the kick-backs that he receives and the people who indulge in such criticism are those affluent individuals belonging to elite social circles who are actually the source of corruption in this case. Such acts committed by the affluent classes inculcate a culture of corruption in the minds of the bureaucratic class which leads to exploitation of the poorer sections of society. Ironically again, it is the people who not only can very well afford to live with corruption but also are the perpetrators of corruption who complain a lot more than those who are woefully exploited by this culture which is the creation of the elite classes.

Next, consider the case of more high profile corruption which exists in higher bureaucratic offices and which is not readily visible to most people. Take the case of the export driven industries and businesses in India. These are some of the most ill-managed businesses in the country. When the global scenario is rosy and the domestic currency is reeling under pressure, these industries make big bucks. The finances they make during these rosy periods are not effectively used to shield themselves from global shocks. Hence, when the global situation turns pathetic, they are left in the rain because of their incapability to hedge their risks. The industries which make huge profits at certain periods and pay fat pay-checks to their top executives fail to hedge their risks for difficult times and therefore, when the difficult times arise they seek solace from the government. They demand tax breaks and stimulus packages from taxpayer money to cover for extremely short-sighted managerial failures.

In these cases, the ruling class is virtually doing a favor to this section of the capitalist society and hence, expects to draw its pound of flesh in the form of kick-backs or favors from these large corporate houses in the form of election or party funding. This is precisely what happens, for example, with the gems and jewelry export lobby. This industry is protected by the government by providing them with undue and unfair advantages which hurt the average tax-payer and they in turn fund political outfits during elections. In this case as well, the blame squarely lies with the affluent classes of society just as in the earlier case. However, these corporate houses are the first to criticize the inefficiency and the rampant corruption which exist in the governing classes, virtually blinded of the fact that the practice of corruption stems from within them and that they are the sources of this culture which is devouring this nation. These cases cited reveal that in matters of corruption, it is the invisible hand in corruption which fuels this menace much more than the visible hand.