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When corruption, bribery are hidden under the garb of 'development'

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When corruption, bribery are hidden under the garb of 'development'

The idea of juxtaposing bribery and corruption with procurement of high-value goods and infrastructure development for the state is an absurd idea promoted by those who benefit financially from the so-called development projects.

If bribery monies and corruption are accompaniments or consequence of the so-called development and good governance, it simply is a mechanism to loot public money.

This is against the common good of the society where a few people benefit significantly against the majority and it is also a serious crime against any society.

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The development records of projects and procurement claimed by politicians require some basic elements - electrical/ mechanical/ plumbing and civil works, logistics, material and manpower supply.

Across the world, including developed countries like the USA, any project work or procurement involving these seven elements offer ample opportunities for making money through corrupt practices by the key stakeholders in the value chain.

This value (supposedly adding value) starts with the politician who could be an MLA, MP or a cabinet minister who secures or issues approvals for spending tax payers' public money or through debt/equity raised against the guarantee of the government, which again is really the public debt or equity that is sold.

The next group of value adding partners in the game include designers, engineers, suppliers of machinery, materials and labour who execute and complete the project. Normally, these act as a cartel of project development and execution companies. So they can collectively control the project cost, and share the profits between them.

Project companies' cartel is a closely guarded secret in India and most of the developing countries, especially in Africa where they agree which one of the project comanies should win the bid on the day before the bid submission or the bid opening date.

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The practice is same for procurement of high value goods such as VIP helicopters. The politicians are usually a silent partner in the cartel game and will secure their share through one of the unsuspecting cartel members in the game.

Behind the smokescreen of quick decision making and fast track development for a few who would benefit from an airport or a metro, and most often at the cost of severe environmental impact that affect the majority, politicians make a ton of money for themselves and those other actors in the value chain.

Those who argue that bribery and corruption are necessary evils that accompany development projects fail to recognise that it is the public money - the monies earned through hard work of the common men and women - that is stolen in the name of development.

While researchers are divided on the universal impact of corruption across the globe, they agree that in developing countries and especially in south Asian countries, corruption has a disastrous impact on the common good of the society.

In one of the well researched project by Michael T Rock and Heidi Bonnett of Hood College USA, it was found that "corruption slows growth and/or reduces investment in most developing countries, particularly small developing countries, but increases growth in the large east Asian newly industrialising economies (such as Korea and China).

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The latter finding provides solid empirical support to a country case literature that explains the East Asian paradox – the combination of high corruption and high growth – in terms of stable and mutually beneficial exchanges of government promotional privileges for bribes and kickback.

Is there any wonder why politicians want fast track public infrastructure development at the expense of environmental impact?

Last updated: May 07, 2016 | 19:08
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