Saturday, August 27, 2011

Anna, Corruption and the Development Equation

We must look at the whole development structure, and not just corruption, if the mess called “India” needs to be set right


It is a dumbfounding moment for a lot of Indians. This Anna Hazare thing and the whole idea of a nation suddenly up in knots against corruption.

Most people are beginning to feel that the Jan Lokpal Bill as envisaged by Team Anna will rid India of the cancer of corruption – to a significant extent. Some feel the Sangh Parivar is ready to ride on the back of the moment – and the movement. Yet others are trying frantically to save a government from whose cupboard the skeletons of corruption just can't stop coming out.

While corruption has become a buzz word, a love-hate word, a cure-all and curse-all word, I think it might not be a bad idea to look at the whole development equation and see where corruption – and we, a nation of billion-odd people, including oddest ones – fit in.

Let me warn you: this could be a longer article than the mostly asinine tweets and cut-and-paste status updates fast gaining currency as our preferred mode of conversation rather than well-considered and longish pieces of writing. So if you are just looking for some sound bytes, scoot away now! Please.

So, what does the whole development equation look like?

This questions is directly and significantly related to corruption, so just think it over.

To my mind, to embrace development in today's fast, technologically advanced and increasingly rights-aware world is to ensure these things: people are able to feed and clothe themselves, children get to play and learn the things they find interesting, adults get to work and get paid in fair proportion to their abilities and labor, and there's a speedy and reasonably fair system of settling disputes and administering justice.

What we have in the world today is this: a huge proportion of humanity goes to sleep on a hungry stomach; each year thousands of poor people die in heat or cold waves for want of proper clothing and shelter; millions of children are malnourished, millions more are child-laborers who hardly get to play anything, let alone learn about interesting things; most people have to settle for whatever they get for the back-breaking work they do (with only a few complaining about salaries and weekends – and still fewer making noises on taxes directed at the really wealthy); and justice is either out of reach for most, too delayed or simply putty in the hands of the powerful.

When you consider these parameters of development in third-world countries like those of sub-Saharan Africa or India (not very different if you look at the bottom two-third of the pyramid), you find that the development situation is truly appalling.
And yet...

Yet there is development happening. Can't you see, there are malls sprouting all around suburbia? Didn't you read about the 20 or so Bentley cars sold in India? Haven't you seen advertisements of bathroom fittings that promise to drench your body with hundreds of liters of water in a single shower? (Okay, the ads don't say anything about how much water is needed to “enjoy water” with those fancy fittings, but you could make out, couldn't you?) And hey, didn't you hear about the new shampoos for your dogs launched by that cult multinational brand?

Truly, there must be a lot of people out there willing to bathe their doggies in exotic shampoo? Or installing a thousand-dollar shower and taking a bath themselves instead? And don't you forget all those vacations in picture-perfect locales that the papers are so aggressively promoting through ads and articles (I forget which is which these days.)

So the top one, two or five percent of an economy is full of all these people – the mega consumer-owners who keep the bulldozing engines of “modern” development going on. And they get the economists to throw a beautifully coined term at anyone who raises an objection to this resource-hungry and environment-ravaging model of development: the “trickle-down effect” that reaches the common man.

The bottom 95 percent? Most of them just manage to keep alive, a majority never having any real chance of shopping in the same mall they helped build with their own hands. And a not-so-big-as-made-out chunk, the neither-here-nor-theres of the world, the enamored middle classes, looks up dreamily at the owners-superconsumers and aspires to reach there some day. But most never do.

The result is a gaping structural deformity in development. Which means a tiny portion of people enjoy all the luxuries of the world, a significant number work blindly for money in the hope of making it big, but the astonishing majority barely scraping through life in unhygienic, depressing and impoverished conditions.

Don't get me wrong. I'm not against capitalism, if that's the idea you are getting from the above views. We've seen socialism fail miserably and the days of autocracy are long numbered. So capitalism or market economy is what we are left with essentially.

What I'm just trying to get at is the root cause of corruption and the enabling environment that helps it grow and enrich a few at the cost of so many.

At the heart of such an enabling environment are three things: natural resources, power and greed. Corruption results from the unholy mix of these three ingredients. In particular, when the legal and systemic structure of a country is not designed to take care of huge structural inequalities in development, corruption seeps in, becomes a flood and starts to boil the blood of the suffering millions.

The unholy mix of corruption, in which powerful people loot the natural resources of a country to largely distribute the wealth thus generated among themselves and throw some peanuts to the milling crowds, is not a new phenomenon. Right from the old colonial masters, be they the Spaniards or the British, down to the current power-brokers and “industrialists,” this loot has been going on for ages. Nothing seems to stop it. What can be realistically expected, perhaps, is that this loot somehow lessens to a tolerable level so that people at the bottom can breathe a little fresher air.

The current upsurge in India is an acknowledgment of the huge and multiple instances of rampant loot going on in the country for the past so many years. The worst part is that almost all political parties that make the so-called democratic polity of India have been caught with their hand in the till at one time or another. Which is why “the common man” has lost faith in the democratic process itself.

If you look at the candidates who fight elections, who are they? Most of them are goons, goondas, boors, hardened criminals, apathetic profiteers and so forth. Many of them are the already rich scions of political bigwigs or their proteges. A tiny minority might be sincere and honest, but there numbers are too few to make a big difference.

Fortunately or unfortunately, the natural resources of a country are limited. That is why, after the process of economic liberalization in India has gathered pace, there is an urgency among our political and owner-superconsumer class to quickly dispense the remaining resources (mines, land, etc.) and ensure their own further enrichment. If palms need to be greased to hasten that process, so be it! If inferior material can be bought at exorbitant costs to the exchequer (read to “you, me and other tax-payers”) but at enormous profits to those giving and receiving contracts for infrastructure and other “nation-building” exercises, why not? Such is the rationale of the corrupt.

And what happens in successive elections? The party or parties that come to power blame the previous regime for all the ills of governance, including corruption, lack of financing, poor decisions, etc. – and continue to line their own pockets while mouthing blames and expressing their own helplessness. Given that almost all parties in India shelter a growing flock of bad sheep in their midst, this cycle of blame and loot just keeps on repeating every five years.

And what development do we have at the end of the day? Oh, my God, don't ask me that! We have a monstrous situation in the country. But let me first talk about a few good things: there are some spanking new, world-class malls and office buildings, a huge number of automobile beauties are available for purchase, some expensive medical facilities have come up, a few lakh educated folk have found employment and there's a cornucopia of consumer goods out there in our urban markets.

Now, get ready for the not-so-good, bad and really ugly parts. There's muck and filth all around those swish malls. Muck and filth in large parts of our cities – on the roads, along the railway lines, around our very houses. Some posh localities and gated communities aside, the sheer amount of muck and filth is mind-boggling. If one were to weigh all that garbage in, say, Mumbai, it would perhaps equal half the waters of the Arabian Sea! Maybe more.

Come to the roads now. The Merc, the Alto and the cycle-rickshaw all stand side-by-side, trying to wiggle their way out of massive traffic jams. Flyovers have turned into nice places where cars crawl bumper-to-bumper, giving their occupants an opportunity to enjoy wide-angle views of their sprawling city – except nobody seems to be enjoying. The honking and heat and smoke are just all too annoying!

There have been many reports of the five-star-type hospitals charging exorbitant money and still not being able to provide the necessary healthcare to their customers. The poor are just turned away (despite the fact that many got land from the government at concessional rates in order that a certain number of poor can also avail of their facilities).

The increasing amount of burgers, pizzas and processed foods are making more and more Indians grow – their bellies, that is. And also grow the instances of diabetes and heart disease amongst them. Why do you think they are building all those expensive hospitals? All marketers have got their projections in place and are readying for the battle to fight diseases that the very pseudo development caused in the first place!

This whole development equation is coalescing around the few: the owners-superconsumers. Along with the politicians and bureaucrats, they are creating these development paradigms and profiting from it at the expense of millions and millions (for whose real uplift and betterment the public money should have been spent).

I can see the objections and the barrage of questions coming: At least more people today are well-off than at any other time in history. Wouldn't some inequalities creep in given the size and scale of our country? And then, what is the way out? Should we just live in shacks in villages? Shouldn't our children aspire to work and live in modern corporations in modern buildings in modern cities? What's wrong with having so many flavors of ice-cream? And how can we root out corruption?

Let me try and answer them in the best way I can.

I'm not against modernization or capitalism. And I love to experiment with flavors in ice-cream along with my kids.

I'm against the mess we have created in the name of development. Why I write strongly about all this is because much of it could have been avoided. Corruption is part of the problem but lack of a holistic vision and poor quality of leaders are bigger causes for this mess.

Why did our leaders throw open the flood-gates of economy without proper planning and preparation? How could we not learn from the mistakes of Western countries? If we had, a monster like Gurgaon should never have come to life. Why do we seem hell bent on aping the West, mostly guzzling their beer but not imbibing their spirit of freedom and justice?

Lokpal Bill may or may not cut down on corruption. But if we do not overhaul our existing laws and labyrinthine governance systems into simpler, speedier and more equitable ones, our development equation – and corruption situation – won't change much.

Over the past few days I have seen the resolve and sacrifice of a simple-minded – though sometimes confused – man, Anna Hazare. But he's already 74 and doesn't seem to have either the experience or the intent to play a larger and more active role in running the affairs of this country. His collaborators and team members seem well-meaning people but will the current political establishment allow them center stage once Anna's ongoing fast recedes into some complicated reconciliation?

To run a country as big and diverse as India, you need at least a dozen or so best minds who can review, change and execute our existing model of development. This will require an immense effort, honesty and perseverance of an order that would make Hercules' task seem tiny in comparison.

It will also require some radical thinking and steps on development: those that do not look at development as encouraging billions to crowd the roads with raucous cars but instead put more Metro tracks and create more walking space; those that include prevention of diseases and espousing a healthy lifestyle as essential elements of a nation's healthcare planning; that take systemic measures to ensure there's bathing water for every citizen and not bother too much about pricey faucets and showers; that rationally allocate natural resources to the production process for a more justifiable and environmentally friendly dispensation...

I hope that Jan Lokpal would be a right step in that direction, but I know that so much more is needed in India to set the course right. And I will be wary of what happens next. Won't you be?

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