Monday, February 8, 2010

Corruption, Is GOOD!

Yeah I know, you all must be wondering and probably scratching your heads after reading the title of this blog! But wait before you declare me a loony; my assertion has strong logical basis.

All Indians, especially the youth, believe that corruption is the biggest enemy of this country's progress. It is holding back India from moving forward. But nothing more can be further away from the truth. Actually, corruption is GOOD because it is making little bit freedom available to the Indians. Without corruption life will be very difficult in this socialist country. It would be impossible for businessman to do their business, consumers to find products of their choice on store shelves, workers to find jobs, and the masses to express their wishes freely. Let us see why.

What is corruption?

Paying a bribe to the bureaucrat is an illustration of corruption for everyone. We must analyze this process of paying bribe to understand corruption. Let us ask an important question, why people pay bribe to the public officers? Of course to bypass various restrictive rules and regulations. So, Corruption is nothing but citizens' method for bypassing the draconian rules and acts of the socialist bureaucratic State. Now, is it wrong to bypass such arbitrary rules and regulations? Not at all. In fact, it is good, because as I said above only by breaking the rules and regulations citizens can live their life freely. Let us take few examples to understand this point more clearly.

Case: 1 A Businessman
Suppose a businessman wants to start a Car factory in the outskirts of the city. Every preparation is complete for starting the factory except taking government permission. Now, just imagine if the bureaucrats in the licensing department are all very honest, and do not take bribe. They will deny the permission. The consequences of this denial will be dire. Firstly, consumers will be worse off because the supply of cars will be less in the economy in absence of this factory, and this will drive up the car prices. Standard of living of people will be immediately minimized. Secondly, laborers are worse off because one employment opportunity is denied to them. Thirdly, the businessman himself is a looser because he cannot start his car factory. We all are losers. Only government is the winner.

Contrast this situation with a corrupt licensing department. If the bureaucrats are corrupt, then, at least, after taking bribe they will approve the permission, and the factory can start. Starting of factory will benefit all of us. The businessman has to bribe the bureaucrats because there are draconian government red tapes, which every one of us will have to by pass to live our life freely. These unnecessary rules and regulations increases the price of every activity for which they are enacted! In absence of such absurd laws, rules and regulations none of us will have to pay higher price of all those activities, and our life will be a whole lot better.

In this process, we cannot blame the businessman, and all those of us who pay bribe. The blame should be on the government rules and regulations, and on the bureaucrats.

Case: 2 Employers breaking various labor laws
Minimum wage laws, and with that all other laws, such as, child labor laws, working condition laws, working hour laws, anti-peddler laws etc., are supposedly enacted to better the condition of the laborers. But, actually, they make their life awful. Minimum wage law unnecessary increases the cost of hiring workers for the employers, and thus it makes laborers unemployed. Similarly, child labor laws results into child unemployment, who need those jobs because their economic condition is not well enough to do any other activity. Working condition and working hour laws also hurt the interest of consumers and the laborers. If all these laws are strictly implemented by the governmental departments, without any corruption, then it will harm every one of us.

Corruption of the labor welfare officers at least allows the employers to by pass these restrictive laws. By paying bribe they can hire people below minimum wage, giving them employment and wages according to their marginal productivity; they can work for long hours, and provide their valuable services to the consumers for those extra hours; they can hire laborers at a working condition term which is favorable to them, and not to the labor welfare officers.

Case: 3 Tax evasion - Income tax
Just envisage a situation where the income tax department is very efficient and honest in collecting taxes! I am sure such situation will be horrible for all those people who pay taxes. Taxation is a robbery, and we certainly do not want our robber (tax) department to be very efficient and honest in their looting activities. Corruption again help all of us in evading taxes. And remember, the less taxes we pay, the less intrusive governments we get, and the more free life we all can enjoy.

So, as we can see, corruption is actually GOOD for all the citizens! Corruption is the way of market to work in a socialist state. In absence of corruption our lives will be ruined quickly. We surely do not want corruption, but for that we cannot tell citizens to be honest, and do not pay bribes. Telling people to be honest against such restrictive paralyzing rules and regulations is like telling them to kill themselves. The only solution of corruption is abrogation of all those government rules and regulation, and removal of all the bureaucrats from their offices, period.

1 comment:

  1. Hi... raj ! You are writing as if world is childish. It is not the house play that you deny the child to play and he will seat aside sad. If a govt. does not permit a car factory at some particular place, the businessman will find some other. And most of the times govt. itself offers some rural and undeveloped place where the cost of land and production minimizes. By this way that area develops and residents gets job. Today the scene is reversed, businessman is less involved in giving bribe but takes benefit of what govt. offers (say it a bribe by govt to businessman)

    Secondly, suppose businessman gives bribe to govt... this will increase the cost of car without any improvement in quality of car. And every time a businessman has the hanging sword of unofficial grabbing. No good businessman allows himself or his business to suffer from these. What would you do of your standard of living with such unimproved car with higher price? There is a difference in owing a car and owing a Good Car. Otherwise Nano must be the hero and have swept the sales of other brand. Business is not just getting license and permits. Many have even tried with bribes and have not succeeded. Bribe is useful only to those who does not fulfill the basic requirements and wants govt to ignore it; this can endanger the life of workers and citizens too. If the project is genuine, no official can restrict you in any way. There is surely no need to offer a bribe. … See you later

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