Understanding corruption in India

http://economictimes.indiatimes.com/opinion/comments-analysis/understanding-corruption-in-india/articleshow/9331241.cms

Most, if not all, decision-making by governments at different scales in India is dominated by "regimes", in the way described by Floyd Hunter and Clarence Stone during their study of power structure in Atlanta . Now, key elements in policy-making are not limited to the formal government machinery, but reside in an informal partnership among several actors, all committed to bring about sustained economic growth. Regimes, therefore, are the durable and effective governing coalitions with a stable set of relationships and "rules", both formal and informal, concerning who participates in decision-making and how decisions are made.

The primary agenda of various regimes at different scales of government is to promote growth within a broader vision of public interest that is expected benefit everyone. Using the arguments developed by Harvey Molotch in the American context, the overriding goal of "property entrepreneurs" is to intensify development mainly to increase the value of their investments. Such entrepreneurs include actors who stand to benefit from, particularly land-based, growth - financial institutions, banks, export industry, property dealers, builders, infrastructure firms, contractors, educational institutions and hospitals.

Policy-makers share this interest in development because they are themselves a component of the growth machine - partly because most accept the dominant ideology of growth and partly because some may personally benefit from increases in land rents. The dynamic so created in which economic and growth-related concerns dominate require that all levels of bureaucracy further the interests of the regime and this has led to near double-digit growth during the past decade in India.

Now counter coalitions are springing-up for various reasons. First, the growth machines have produced skewed economic outcomes, leading to demands for inclusive growth. Second, the growth machine has led to local protest movements against "high development projects" and calls for urban renewal. Finally, the growth machine actors have widely practiced gaming that has led to institutional corruption.

corruption and how it works today very well. "The White Tiger" is the debut novel by Indian author Aravind Adiga. It was first published in 2008 and won the Man Booker Prize in the same year. K&R

It is far more difficult to run a corrupt regime when competition exists. Back in 1950's & 1960's the government of India ran 100% of railroads (main mode of people transportation in India which has the largest miles of railroad tracks in the world), electricity production, airlines, Aircraft manufacturing (HAL), Telephone service, radio broadcasting, and lions share of machine tools (HMT), Telephone manufacturing, banking, insurance, cement manufacture, etc.

I recall making 3 trips to the ticket office to buy a domestic airline ticket, the clerk at a railway station wanting a bribe, and in general lousy service levels in government run services.

Now there are privately run outfits competing in many of above fields and the level of service is so much better.

http://www.youtube.com/watch?v=xjB_Tf7Cy3A&feature=related