Anurag Jain's Blog on Bangalore Events, Travel, IIM Bangalore, IIM, IIMB, Management

Monday, November 08, 2004

Posted 10:02 AM by Anurag

Economic and administrative Mismanagement in India

From an egroup I am a member of. Good points made.

The alarming situation that Indian economy is mired in despite tall claims of World Bank and Indian Government, calls for immediate attention of Indian Public.Some examples are as under:

1. Almost 50% of Union Government and State Government revenue is eaten away by the good for nothing and corrupt bureucracy on salaries, perquisites, and allowances ( A typical SP of plice costs almost 75,000 per month to State and eats another 3 times in bribery.)

2.30% of All expenditure in defense, infrastructure, power, health and other purchases is siphoned off by way of bribes and kick backs and the cost of purchase is almost 1.5 times of what would have been possible if the procurement would have been corruption free. This tantamounts to mind boggling figure of almost Rs 300,000 Millions ( Rs 300 Billions)every year.

With so much black money( My estimates are almost 80% of white money circulation and GDP)in system, inflation and inequitable distribution of wealth is inevitable.

3.Mindless opening up of economy particularly in White goods and automobiles is shooting up demand for Petrol and diesel and electricty, all in acute short supply in India and for which Billions of dollars are to be spend each year for improts.besides spoiling environment and creating garbage and noise.

India has failed to put in place Mass Rapid public transport system and the pool vehicles with acceptable level of quality and peformnace so that people are encouraged to use public transport for their office and day to day commuting.

4.despite heavy increase in inflation rate(Almost 8.5%) the savings bank and FD rates in banks is being maintained ridiculously low at 3.5 to 5.5% pern annum range.That means eroding the capital of common man in small savings. This will create serious social problems in coming times. How time deposit rates can be less than inflation rate? This is idiotic.

The PF deposit rates have been reduced despite protests.Any thing less than 10 % rate of such Deposits will put retired persons in real soup.India has no Social security scheme in place and government must meet interest gap by way of social security funds to be allocated in budget.

5.Foolish rhetoric of reservation system for employment generation and social justice will prove disastrous and unproductive , rather counter productive in coming times. On one hand Government talks of free market economy and liberalisation and on other hand it takes action that tanatamounts to interference and regulation on business.Against WTO directive of free labor market.

6.No where in world and in history any government could provide employment to more than 10 % of its population and Indian Government is trying to divert attention of people and make fraudulent promises to get jobs through reservation is one of the most sinister politicial fraud with the nation byv all politcial parties.

In fact required actions are not being taken to generate employment opportunities in economy and 70% of India's busget is being siphoned off or spent wastefully in government establishment cost and corruption.

7.The overdue legal reforms to ensure fast and fair justice is not being done as it does not suit 40% criminals in politics in all parties. What is happening in Best Bakery case in Gujarat is outcome of weak and fraudulent judical system in country where a witness can't even give testimony without pressure.Delays, foolish principles of criminal and civil jurisprudence and corruption and insensitised lawyers and policemen( Read gundas in uniform), is cause of all this state of affairs. despite several reports submitted, poice powers of arrest and prosecution are not being curtailed and fiancial and penal liabilities imposed.

It is time that citizens of India take on the corrupt and lethargic politicians, bureaucrates and police upfront and start punishing them .

Indian society has decayed in last 50 years appreciably and a kind of rennaisance or revolution is required to cleanse the society of corrupt, criminals and dirty politcians and the foolish laws.

Members are requested to send specific suggestions for reforms in india( Not the type of reforms like advocated by pseudo econnomists and puppets like the ilk of Man Mohan singh ,et. al) so that an approach paper can be prepaerd and sent to policy makers .

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