Wednesday, February 09, 2011

Corruption in India

Forwarded to me.   If India was not so corrupt, why should anyone in India be poor?

FYI: 1 lakh = 100,000,   1 crore = 10,000,000




Posted by Arun at 8:02 AM
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Shankar · 733 weeks ago

How does corruption lead to poverty?
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macgupta 81p · 733 weeks ago

If India was not so corrupt, why should anyone in India be poor?

India budgets and spends a lot on development - which, if it reached the intended recipients, would have greatly alleviated poverty. Instead it illegally gets siphoned into the pockets of politicians and bureaucrats on the way, and very little of it actually is spent on the development schemes. With the amount of money budgeted, no child in India need be hungry or without school - except that the corrupt ate it all up.
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macgupta 81p · 733 weeks ago

The second part to the story is that corruption is often a sign of inefficiency - it is an additional transaction cost. Moreover, it acts as a barrier to the entry into the market of people with higher sense of integrity. This slows economic growth. If India is raising so many people out of poverty at 8% growth rate, it would be raising even more people out of poverty at at 10% growth rate.

Suppose India starts at a GDP of 100 and grows at 8% a year. Over a five year span, its GDP (rounded) is
100, 108, 117, 126, 136. Over 5 years, India has generated a total of 587.

If instead, India grew at a rate of 10% a year, that series is 100, 110, 121, 133, 146, for a 5 year total of 610.
The accumulated wealth is about 4% more than the previous scenario. The effect on people's lives, assuming that the good fortune is well distributed, is enormous.
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Siddhartha · 727 weeks ago

Most of the communities in India (such as Bengali), are succumbed in 'Culture of Poverty'(a theory introduced by an American anthropologist Oscar Lewis), irrespective of class or economic strata, lives in pavement or apartment. Nobody is at all ashamed of the deep-rooted corruption, decaying general quality of life, worst Politico-administrative system, weak mother language, continuous absorption of common space (mental as well as physical, both). We are becoming fathers & mothers only by self-procreation, mindlessly & blindfold. Simply depriving their(the children) fundamental rights of a decent, caring society, fearless & dignified living. Do not ever look for any other positive alternative behaviour (values) to perform human way of parenthood, i.e. deliberately co-parenting of those children those are born out of ignorance, real poverty. All of us are being driven only by the very animal instinct. If the Bengali people ever be able to bring that genuine freedom (from vicious cycle of 'poverty') in their own life/attitude, involve themselves in 'Production of Space’(Henri Lefebvre), at least initiate a movement by heart, decent & dedicated Politics will definitely come up.
- Siddhartha Bandyopadhyay, 16/4, Girish Banerjee Lane, Howrah-711101, India.

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