Monday, February 1, 2010

Get real. It doesn’t work – the Zero denomination Note

It is commonly said that doing something about a problem is better than sitting on your hands and doing nothing. This is not entirely correct. For, by doing something, while you may feel better for doing something, you may not be really helping the situation. You may at best dilute your attention from the root cause and at worst exasperate the problem, if what you are doing is not apt. Zero rupee note is this category. To put it simply, it is not a very effective idea.
As the novelty wears off - it will have zero impact and will lead to making the situation worse for the individual on the spot

According to Mr. Vijay Anand, president of “5TH PILLAR”, a local NGO, which distributes zero denomination notes as a unique initiative to mobilize citizens to fight corruption, this concept would work for the following reasons:
First, bribery is a crime in India punishable with jail time. Corrupt officials seldom encounter resistance by ordinary people that they become scared when people have the courage to show their zero rupee notes, effectively making a strong statement condemning bribery. Anand believes that the success of the notes lies in the willingness of the people to use them. People are willing to stand up against the practice that has become so commonplace because they are no longer afraid: first, they have nothing to lose, and secondly, they know that this initiative is being backed up by an organization—that is, they are not alone in this fight.

Personally, I don’t think this works, esp. with people like Mayawati and Yedurappa (two to mention) who are occupying very important posts in U.P n Karnataka resp. They are the source, or the start point where bribery/corruption begins, and slowly trickles down the entire system through corrupt bureaucrats, who are willing to bribe as much as 3 crores, for the head posts in various departments. Irrespective of their position in the sense of seniority/juniority, academic and professional credits, they are not only being considered but also promoted, putting to shame law n order, justice and equity, denying the most worthy n ‘fit’ his rights.

While the idea of the zero rupee note is commendable, it looks in the wrong direction.
India's pervasive corruption is more a function of the self serving sluggishness of the ruling class - the recently exposed Ruchika Girhotra case and my own experiences indicate that checks and balances have collapsed and coalesced into one corrupt predatory ruling class. There is very little difference between the judiciary, the administration, the legislature and the press. They all know that bad, perverse, dysfunctional behaviour is the capital with which to earn money and power. The old "Pinch the child and then rock the cradle" idea.
My fear is despite the fantastic growth figures, India is fast deteriorating into an administrative nightmare and a bit of a basket case. Transparency and accountability are the mantras that will create the necessary paradigm shift.
The RTI ACT 2005 as a piece of legislation is brilliant.
But count on the bureaucrats to racketeer on this too.

The problem of corruption is a deep rooted one and not specific to a country, culture or era. One has to look at history to see what type of efforts have been more successful than others in fighting corruption. The notable examples come from Singapore, which suffered quite badly due to corruption at one point. One of the factors that helped reduce it significantly was the very substantial increase in the salaries of civil servants, along with the fear of physical punishment. Singapore is a place where public flogging for severe offenses is a strong deterrent for variety of offenses against the law.
While this is not being suggested as a recipe for anti-corruption magic formula, it does offer some food for thought in how societies have fought corruption. Only organized and well coordinated efforts, applied over a sustained period, and supported with the political will can make a difference.

The pillars for these efforts have to be
a) braking the nexus of criminals with politicians, with election reform,
b) use of technology to facilitate routine requests of citizens and reporting corruption,
c) increasing the deterrence factor by severe and quick reprisals.
d) improved awareness among the citizens of their rights and responsibilities.
Without such multi-pronged approach, individuals are just as poorly equipped for the fight as the Satyagrahis were to fight the British soldiers.
Placing the major burden of this fight on the individual, without organized support is foolhardy and ineffective. The 60 years of Indian history is the proof.

The US and other countries officially endorse tipping for service. The Zero denomination note could say something like: "If you don't get paid enough, take it up with your manager, not me."
What gave them that right? Their expectation? My generosity? A contract? Social norms? God? The government? Speaking of the government, if the waiter works at a government cafeteria, does that make it bribing a government employee?