In 1982, In Singapore, LOKPAL BILL was implemented and 142 Corrupt Ministers & Officers were arrested in one single day. Today Singapore has only 1% poor people & no taxes are paid by the people to the government, 92% Literacy Rate, Better Medical Facilities, Cheaper Prices, 90% Money is white & Only 1% Unemployment exists.
I have seen many people sharing the above message. But, this is a hoax. You can search in google for more information. My post is not about whether it is hoax or not.
Those whoever created the above message wanted to say, Since, Singapore has strong Lokpal Bill and it is highly developed, and if we bring it in India also, we also becomes highly developed.
In the exact same way, I would say, since the rich person infront of my house has a watchman, and he had become very rich, and If I also hire a watchman, I also become very rich.
For a person to become rich, or an organization to grow, they need to do something to create wealth, by doing business, developing something, or inventing something new etc. Once, they get enough wealth, they can hire security to protect the wealth. But, if the security becomes too serious, and in the name of protecting Rs.1 Lakh, if they stop a customer who can generate a profit of Rs.1 crore, then they will soon loose everything.
When India has so many restrictions in doing business in many sectors including education, transport, agriculture, electricity etc., without bringing reforms in those areas, if we are going to bring strong anti-corruption laws, it is like, hiring more security personnel without doing anything to create wealth.
According to Heritage Foundation and Transparency International, in 2010, seven of the wolrd's ten 'least corrupt' countries were ranked among the top ten in 'business freedom'. Singapore is one country which is in top 10 in both. The ten most corrupt countries on the average had a business freedom rank of 154. India's rank was 167.
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I think it is still a Catch-22 situation :). Any little 'freedom' given to the people will readily be exploited by the corrupt people as much as it possibly can!
ReplyDeleteWhich brings us back to the 'security' you have mentioned.
The corruption comes, only if there is involvement with the government. Otherwise, Market drives whether it should be there or not. In case of Tele-communications, since, spectrum is owned by government, there is lot of corruption in buying it. But, other than that, the corruption in tele-communication companies is meaningless. We never need to bother about it. It is the problem of the shareholders of that company.
ReplyDeleteSince, Government controls many things, there is lot of corruption. If government does not control anything, then there will not be any corruption, and it would be driven by market.
We need security, only in the areas, where the control cannot be given to individuals, like, Defence, Police, Foreign affairs etc.
This is a very good insight. Usually good economists come up with such an insight. Superlative blog post.
ReplyDelete