There’s absolutely no way getting around this issue. Corruption is a major problem in India, as it is everywhere else. In India, the issue’s been on the front page of its very watchful & critical newspapers for a very long time. In fact, some like Tehelka.com have built a reputation around exposing scams. The sheer fact is that corruption continues, and it seems not much can derail the gravy train in India.
From an international investment perspective, they all know that corruption exists. They all know that people need to be paid off or provided hospitality to. They all know the importance that the business world places in cementing its relationship with Government, so they try to replicate it – rather than take a stand as per their corporate governance rules in their own countries.
Or do they?
Evidence suggests that corruption is as much an issue in the western world as it is in places like India. In well known cases of British firms, the Government has blocked enquiries into trade deals (BAE Systems), been complicit in trying to sway deals by offering generous hospitality (FIFA World Cup bid) etc etc.
In the past when I’ve discussed India’s woes with Indian business leaders, their view is summed up in the following quote “as long as our work is done, why should we care if a margin needs to be paid”. I suspect most western business leaders would disagree with this on the face of it, but privately would concede that they’ve had to somewhere down the line compromise on their ethics.
Given that India has a free and (very) critical press, is a very (colourful) and vibrant democracy, the only hope it has of tackling this scourge, is that of inspired political leadership.
It’s fair game to be critical of Manmohan Singh, the Gandhi’s and the ruling party, as it is about LK Advani and the BJP lead NDA coalition.
What’s the point of being a man of character & integrity as Prime Minister, or having a vibrant democracy, when they keep quite on scams such as those witnessed recently – Commonwealth Games, Adarsh Society, and the massive 2G scam.
One can only conclude with such behaviour that they’re on the take. India needs inspired political leadership.
Who will that be?