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Posted Wednesday, October 14, 2009 6:03 AM

India's New Anti-Corruption Laws May Not Work

Newsweek

By Jason Overdorf

Experts estimate that corruption in India indirectly kills more than 8,000 people a day by diverting money from food programs into the pockets of crooked officials. Now the government hopes to reduce graft with a new approach: instead of specifying how much money will be spent on welfare programs, it will use laws guaranteeing employment, education, and food to set out the exact services that each government agency must deliver. 

The idea: The centerpiece of the movement is the National Rural Employment Guarantee Act (NREGA), passed in 2005, which guarantees 100 days of paid work to every rural household and forces the government to fork over the money again if the original funds are stolen. "This is one reason why the government is showing an unprecedented concern with corruption in public-works programs," says economist Jean Dreze, who was instrumental in setting up the act. 

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The evidence: It's not encouraging. The government is indeed putting more muscle behind efforts to eliminate corruption, such as creating bank accounts for welfare beneficiaries and transferring funds to them directly, and using Webcams and smart cards to prevent officials from inventing fictitious recipients. Yet corruption remains rampant. A recent investigation revealed that 40 percent of ­NREGA funds were stolen in key districts, and hundreds of complaints have been pending since 2007. Most discouraging of all, the audit found that elected officials at the village level pocketed a huge chunk of the funds--dashing hopes that decentralization would ensure better oversight. 

The report gives the impression that somebody is looking into the problem. But according to Parshuram Ray, who filed suit against the central government and 26 state governments, almost none of the required audits to monitor the law's implementation have been conducted. Complaints are bogged down by "an ineffective and long drawn [out] procedure," Ray's suit says, and "prosecution of guilty officials in such complaints are few and far between."

The conclusion: Ray's dismal findings suggest that Prime Minister Manmohan Singh's rights-based laws will remain part of India's failed bureaucracy until the country succeeds in the most important reform of all: creating a court system that is not only just but also prompt in enforcing the laws it enshrines.

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Member Comments

Posted By: kaminababu (October 23, 2009 at 1:22 AM)

Fight corruption and corrupts in India who derail public life.

Put your opinion on

www.kaminababu.com

An unbiased voice of common man of India.


Posted By: Taykina (October 18, 2009 at 11:01 PM)

I agree with Jackie B. I also feel that India’s governmental system should be reviewed and made more transparent, so that the flow of money can be monitored better. It is definitely possible to fix this problem, if enough efforts are made. It has to be done, or else eventually, the people of the nation will begin to doubt its legitimacy. Revolts will occur, and there will be much turmoil, because you can only push so many people so far.

Although this new system is not working completely, it is a start, and it is much better than their current way of giving the nation’s poor what is rightfully theirs.

There are probably better options out there than this new plan, however, to increase transparency, especially since corruption is still present in the nation.

I think the fact that “the audit found that elected officials at the village level pocketed a huge chunk of the funds” should be the government’s biggest concern right now. Village leaders need to be checked much more carefully.


Posted By: bigbaby25 (October 15, 2009 at 6:42 PM)

Ending India's massive problem of corruption is like cleaning up the beaches of sand. It can not be done. As for people you feel that it is the elephant size bureaucratic system that is at fault and must be cleaned, well the system also knows how to protect itself. There have been attempts to clean the system and every government that seems like a threat to the civil servants, has been removed from power in the next elections. As a result no government wants to take on the network of civil servants and the many ills they bring