Economic cost of Anna Hazare's version of Lokpal Bill

Discussion in 'Politics & Society' started by Yusuf, Aug 20, 2011.

  1. Yusuf

    Yusuf GUARDIAN Administrator

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    If Anna Hazare's lokpal bill is passed, will it have an impact on Indias economy and economic growth?

    All ministries like those catering to infrastructure sector etc will go slow on a lot of files which could damage or slow progress in that sector. Similarly with other ministries.

    We have one clean minister in the GoI who cancels tenders at the slightest whim or corruption. This has led to delays in procurement of vital defense equipment. This new lokpal bill will only add to the regulatory system that we tool pains to remove when we first started to liberalize in the 90s.

    It is possible that the implementation of the lokpal bill could slow down Indias economic growth.
     
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  3. Known_Unknown

    Known_Unknown Devil's Advocate Stars and Ambassadors

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    No. In fact, it will increase economic growth. The government won't have to sanction 100 crore after taking into account corruption for something that should cost only 50 crore, the gazillions of rupees wasted will actually go towards benefiting India's economy and its people.

    An added bonus is that investor confidence will actually rise after this law is passed, leading to more FDI, and faster growth as a result.

    There is no downside, except for corrupt people.
     
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  4. anoop_mig25

    anoop_mig25 Senior Member Senior Member

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    well present system is even worse and with socialist minded people at helm of affaires we should forget about economic reforms and why don`t u name the said minister
     
  5. Iamanidiot

    Iamanidiot Elite Member Elite Member

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    Go to a government with a support Anna Hazare badge .You will be saving bribe money I think
     
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  6. sob

    sob Moderator Moderator

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    Yusuf initially, whichever version of Lokpal you use, there will be delays. Some people like our favourite DM as pointed by you will use this as an excuse for not taking decisions. I suspect this will be used mainly by all the lazybones who think that a Govt job is akin to a Dole where you are paid to sit on a chair from 9 to 5 and not do any work.

    But for the bureaucrats and ministers who are efficient and have very high integrity this will come as a boon as they will be rewarded by the results of their hard work bearing fruit. Today so many of our IAS officers leave the service midway because they are disgusted with the corruption and inefficiencies in the system. We shall be able to retain these stars and ultimately the nation shall benefit.
     
  7. thakur_ritesh

    thakur_ritesh Administrator Administrator

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    I have my apprehensions.

    Atleast initially on the short term basis there will be economic loss, though that wont be bad but what if there are long term repercussions and to me it wont come directly from the implementation of jan lokpal if and when it gets implemented. My concern is that if they get a yes here they will target other areas, like anna is already talking about land accusation, or why corporates are getting so rich or why certain people have their A/Cs in multiple crores but the others don’t even get two-square meals a day, so on and so forth

    If their intent is one where they want to simplify systems, streamline it, make the processes more forceful and transparent, then yes we might have initial hiccups but the returns will be there in long term where the system will be less prejudice to the high and mighty, the influential people or people who can network and have their way through, and everyone will stand to benefit where you would know in advance the exact way the system will work and you then wont be able to bend the system to your benefit, and my sense is this is something that to an extent they want to achieve.

    The fear is, what if they make this movement a part of socialism, then what? What does anna mean when he is pointing fingers at the business houses? What does he have in mind when he points fingers at the vast disparity in earnings of people? Does he mean people should earn the same and no one should be earning more than the other, and if people can earn more, then to what extent? What is their take on environmental issues? What is their take on mining? What is their take on industrialization and vast pieces of land required for that?

    There is a lot of answering to be done there, but if they are on the path of socialism then they are beyond a doubt going to have a bad effect on the economy. Business runs on sentiments and if the market sentiment is negative, it wont be good at all and socialism never had a good effect on the economy, as such we have suffered a lot because of that and even today when the UPA-II is trying to present a face that is one of socialism the country is losing.
     
  8. devgupt

    devgupt Regular Member

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    People are with Anna becuase people were fed up with corruption and they saw his movement as a one time chance to clean the System.If Anna ventures outside this territory and into the realm of making actual policy decisions he will lose support and which will be undoing.
    Look at Baba RamdevWhen the movement started last year, Baba had a higher recognition and fan following compared to Anna.While his central demands(black money) were certainly legitimate and had the full support of everyone including Anna, some of his other demands and his later actions have alienated his core supporters.

    While you can certainly find Anna's recent comments worrying , they aren't exactly reflected in the actual draft bill .

    Morerever Lokpal bill has to be passed in parliament. This would mean there has to be a compromise on both sides. Hence a Lokpal who is an umpire and not a player is the natural outcome.
     
    Last edited: Aug 21, 2011
  9. SLASH

    SLASH Senior Member Senior Member

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    People in villages might not know what Jan Lokpal Bill is about. But they understand when Anna talks of Land reforms to safeguard their lands. This could be just a way to get villages rallying behind him for this movement.
     
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  10. sanjay

    sanjay Regular Member

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    Foreign investors like honest govt, rule of law, political stability and a credible system. If India looks like a banana republic, then it hardly gives any confidence to investors.

    Bribes are like an invisible tax on the economy, and as well all know, investors don't like such hidden taxes. The business sector is impeded by these extra hidden levies.

    Furthermore, bribes are a result of the License Raj, and Big Govt. These things are anathema to business. The business world like deregulation and small govt. For businessmen, the best kind of govt is one that's not in the way.
     
  11. thakur_ritesh

    thakur_ritesh Administrator Administrator

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    devgupt,

    the question i am raising is not about jlp at all, for which i said if and when it was to be implemented there will be some initial hiccups but will settle for the better later on, and it is good if the whole process gets streamlined and people follow all the rules. it will only make the life of people better, which is important.

    the real question is what if tomorrow he starts to attack the business houses or the middle/upper middle class where he raises the questions on why certain people are earning more than the others. mind you if he was to even do that, the vast majority of this country is either BPL or around that region and they will support his call on the matter and even of the middle class a big chunk id lower middle class, who too will agree with him on the matter. when he talks about land accusation, what does he have to say about industrialization for which large chunks of land are required.

    and so the suggestion, he needs to come clean on a lot of matters.

    are you trying to say, he is saying it just for the heck of it and just to garner support and once done he will fade away from the national scene and will forget all that he has said he will take up next.
     

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