Ever wonder why India is so corrupt? Because like three-day old fish, the rot starts at the top. Now you know what the top was at the time of India’s independence and therefore you must have had your conjectures. Now wonder no more.

In today’s Business Standard, Pranab Bardhan in his article “India — A case of bad governance“, makes a number of very important points.

ACT 1: A Course on Development
This summer for teaching an undergraduate course on economic development (Econ171) at Berkeley, I naturally considered the major factors that affect — and effect — economic growth and development of an economy. The major headings included growth models, energy, infrastructure, urbanization, education, agriculture, and one other topic which I will come to presently. It should come as no surprise that the government of India — being one that professes a sincere commitment to economic growth and development — actively intervenes in all of those areas. …

Will Durant (1885 – 1981) was an American historian, writer and philosopher. His most famous work is the 11-volume “The Story of Civilization”, published between 1935 and 1975. In a 1931 work, “The Case for India“, he had this to say about India.

I came across this story on a mailing list. Let me retell the story first and then the source of the story.

Let me tell you a story. It’s a vignette of what I consider to be important although it may appear to be rather trivial. Perhaps its apparent triviality is what should astonish us. But allow me to first recount a conversation I had the last week.

Congress, Nepotism and Corruption: The Eternal Rotten Braid
The three — corruption, nepotism and the Congress party — form India’s most enduring triumvirate. It is hard to think of one without thinking of the others because they characterize India’s politics and political landscape like nothing else conceivably can. The Congress party is the fiefdom of one family — being part of that confers the inalienable right to be the boss. Nepotism gains a whole new meaning in the hands of the Congress. Chronic, acute and pervasive corruption at the highest levels …

The Indian education sector is in distress. How does one explain the lack of outrage among the population at something which affects them so forcefully? Could it be because they are not aware of how dysfunctional the system is? That must at least partly explain the apathy. Perhaps they know but accept it with the fatalistic resignation of the type that accepts corruption among public officials? Perhaps they mistakenly consider pervasive corruption as normal. But how can they not see that government control of education, the rampant corruption, and the …

In a recent piece in the Wall Street Journal titled “India’ Greatest Failure,” Paul Beckett writes about T.S.R. Subramanian who retired as India’s most senior civil servant in 1998. Beckett quotes from TSR’s book, “GovernMint in India” — “Since no part of the Establishment has an interest in punishing corruption, trying for a more sweeping solution quickly leads into the realm of blind hope.”

Are there no depths that the Congress party led UPA government will not plumb to protect the criminally corrupt? When exactly will the Indian public wake up to the realization that the pervasive corruption that hollows out the Indian state is the sole achievement of the Congress party over its decades of misrule — practically all of India’s existence as an independent country in modern times? If even the unspeakable misgovernance by Mr Manmohan Singh does not enrage the Indians, what on earth will it take — a thousand thermonuclear …

Institutions as Ideas
Institutions defined most generally are essentially ideas. They are big ideas, ideas that are persistent and which have a profound effect on the populations that evolve, and adopt, the ideas. Examples of powerful institutions – therefore powerful ideas – are easy to find: markets, state constitutions, legal systems, systems of governance, and so on. The institution called democracy is also an idea. The instantiation of an idea — its embodiment or implementation or incarnation – varies from place to place, and from time to time. How an institution …

This year, 2009 CE, marks the 200th birth anniversary of Charles Darwin (1809 – 1882), and the 150th anniversary of the publication of his book, On the Origin of Species by Means of Natural Selection, or The Preservation of Favoured Races in the Struggle for Life (1859). Contrary to what one may suppose, the phrase “survival of the fittest” does not occur in that book. It was Herbert Spencer (1820 -1903), who coined it in his book Principles of Biology, (1864).[1]
Spencer warned that “the ultimate result of shielding men from …

Anyone familiar with the disastrous state of India should not be overly surprised to learn that the Indian parliament has an overwhelmingly greater percentage of criminals than the general population. How effectively a nation functions and how successful it is depends on its leaders who make public policy and thus critically determine the outcome. India’s failure to develop and achieve its potential is proof positive that its leadership is lacking.
Underdevelopment, poverty, and all other ills that plague India are an unavoidable consequence of poor public policies and choices.

The National Rural Corruption Guarantee Scheme (NRCGS) was the title of a post from Nov 2007, one of a series of posts dealing with the National Rural Employment Guarantee Scheme, starting with one in Nov 2004 on “Sir, won’t you buy this bridge and the Employment Guarantee Act?”

According to a report in today’s Rediff on Karnataka’s new government, many of the members of the legislative assembly (or MLAs, those who make the laws of the state) are criminals. The report leads off with details of what the personal wealth of some of the MLAs are but later, almost as an afterthought, mentions that many have criminal charges pending against them:

“Will the Indian mind ever get decolonised?” is the question that R Vaidyanathan asks at the end of his column titled “The colonial conquest of India by Cambridge varsity” in DNA today. (Hat tip: Raja Shekhar Malapati.) It is about the government of India giving Cambridge University Rs 26,00,00,000 (US$ 6,500,000) to support the ‘Jawaharlal Nehru Professorship of Indian Business and Enterprise.’ That professorship is to mark the centenary of Nehru’s arrival at Cambridge.

A recent Wall Street Journal article, World Bank Disgrace, (hat tip: Prakash Advani) reports that an internal review of five WB health projects in India totaling US$ 569 million in loans shows major corruption. The report begins with
Credit Robert Zoellick for knowing how to put the best face on a profound embarrassment. On Friday, the World Bank president announced in a press release that the bank had “joined forces” with the government of India to “fight fraud and corruption” in that country’s health sector. This is happening at the …

The facts are pretty simple to state. A piece of land was sold by party A to party B for Rs 22 lakhs. The official price was Rs 7 lakhs, less than a third of the actual amount that changed hands. That means A received Rs 15 lakhs which he cannot account for. And it also means that B paid Rs 15 lakhs from sources which are also unaccounted for. Then parties A and B arrived at the land registration office to record the new title. The registration fee is …

Over two years ago, in Aug 2005, I had written that the national rural employment guarantee scheme (NREG) will ultimately end up increasing the number of poor and deepening poverty — which of course was easy enough to predict since the policy is “pro-poor” and like all policies “pro-” something do, increases that something.
The NEGS is not novel. Maharashtra has had an employment guarantee scheme for decades. According to Sharad Joshi, it “has produced few permanent assets. And the EGS in Maharashtra is synonymous with corruption. Government officials concoct false …

Education in India is generally in dire straits even though some people mistakenly believe that it is excellent from the successes of some ex-IIT non-resident Indians in the US who made piles of money. It is not hard to figure out what is the root cause of the distress of the educational system in India: the near-monopoly control of the system by the government.