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Re: Re: Corruption in high places



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------------- Original Message --------------
venugopal <gvvs@nird.ap.nic.in> wrote:

6. One common view is that corruption can be reduced greatly by privatization.
They argue that by moving away from license/control raj and by limiting the
activities of the State to some key areas, one is reducing scope for a corrupt
politician to make money. This idea appears alright superficially, but do we
see real evidence to support this hypothesis? Do we think there is less
corruption in high places in Japan or USA? 
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to quote a tamil movie -  Out there they take bribes to go beyond their
duty. Out here, they take bribes even to do their duty. 
Yes, sir, India is FAR more corrupt than these countries. What we need is
more transperency and accountability.
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Do we see any reduction in India in
corruption after 1991, when we adopted the new economic policies? This idea is
based on a fallacy that private sector is more honest or more efficient than
government sector, "if it is your own money, you will handle it more carefully
and private sector works differently because it is their own money". 
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the cutomer-corporation relation is essentially different from a
citizen-government relationship. The fomrer is voluntary, the latter is
based on force. As I have said a million times, the only power a
corporation has over you is to entice you with better products and
services. the government can kill you if it wants to.

coming to the point, that is exactly the reason we must have competition
because competition has INBUILT accountability. Why is the RTO the only
body issuing licences, which is esssentially a driver competence
certificate ? this is something which any competent
driver/trainer/instructor can issue. and in a true free market, a few
driving certificate issuing companies will be left competing. they cannot
afford to be corrupt because that will reduce the value of their licence in
the market. they cannot afford to be rude either, because I can choose the
other company.
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This
approach does not  go into many other relevant factors like the fact that
corporate sector does not necessarily deal with 'own' funds, as can be seen by
the extent of equity spread and high leverage enjoyed by companies. They
sometimes handle more public money than what government handles. 
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If u are not satisified with XYZ's accounting, no one forces you to buy
XYZ's shares. A company in a true free market will seek to build its
reputation carefully.
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There are
also
many other factors like 'built-in obsolesence', 'creating a consumer demand',
apart from oligopolies, huge money spent on advertisements and packaging,
which
all militate against the private sector essential spirit of 'customer is
king'.   
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The advertisement can only ZAP you, if you allow yourself to be zapped. A
society with a true free market requires alertness from the citizen. No
nanny state to look over all your troubles and protect you from your own
mindlessness.
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In fact corruption in India cannot exist  even one day if the private
sector decides "Nobody shall be bribed from tomorrow".
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A typical prisoner's dillema. when the individual's advantage becomes the
collective's loss. Believe it or not, a true free market is the setup in
which such situations are minimised.

regards
prakash


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