Monday, September 22, 2008

Of sleazy schemes

Increased outlays for NREGP will increase corruption
The road to hell is almost always paved with good and even noble intentions. One couldn’t but help wonder about this truism after reading the likes of Aruna Roy and many other well meaning activists passionately defend the National Rural Employment Guarantee Programme (NREGP). All of them – barring some die -hard jholawallas – agreed that there were serious flaws in implementation of the scheme that had resulted in most of the money not reaching intended beneficiaries. In some districts, just 3% of the targets were achieved as corrupt contractors, bureaucrats and politicians made merry at the expense of the poor unemployed people of rural India. Most activists like Roy do admit that there is some truth to the allegations made in the CAG report that too much of the funds meant for NREGP have been siphoned away. And yet, they insist that the NREGP must now be implemented in every district of the country (Indeed, the implementation has already started). Their solution: plug the loopholes that marked the faulty implementation of the scheme as witnessed in the last few years.

If you look at analogies, it would go something like this: murders and rapes keep happening with alarming frequency in a neighbourhood, despite the presence of police personnel. If activists were part of the solution to this crime wave, they would advocate that the murderers & rapists will soon stop committing crimes! How different are the corrupt Indian contractors, bureaucrats & politicians from murderers & rapists? And what hope have they given us over the last 60 years or so that they just might stop looting the Indian exchequer in the name of the poor? And how many court decisions have you heard of, in the last 60 years or so where top bureaucrats, businessmen & politicians have been sentenced to spend days behind bars for corruption? So saying and hoping that tweaking the current system of delivery will ensure that the Rs.60,000 crores, going to be spent every year on NREGP will not be siphoned away by the criminally corrupt, is naive at best; and insidiously dangerous at worst. For corruption will not go away and more and more frustrated rural poor will give up on the system and join the Naxalite movement.

After 60 or so years, India has managed to be host to more than 400 million illiterate citizens. Tweaking the system hasn’t been of help. And yet, you have our pseudo-liberals insisting that allocating more funds for primary education will do away with the problem of illiteracy. Or that more funds allocated for health care will improve health standards of the poor in the country. There is nothing more sinister than defeatist statism.

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Source :
IIPM Editorial, 2008
An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative

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