India growth story is taking a hit because of poor governance

From Ramlila Maidan to Zuccoti Park

J Mulraj 

People movements are demonstrating their power. Anna Hazare demonstrated the popularity of his fight against unbridled corruption at the Ramlila Grounds, in New Delhi, compelling the Government to take his demands for a stronger Lokpal bill with more serious intent than it had been doing in the decade earlier. Move over to Egypt, and the protest at Tahrir Square brought down a 30 year reign of Hosni Mubarak, purely on the back of people power.


Move further west and popular protest by those who claim to be the 99% majority unheeded by Government whose policies, they say, favour the top 1%, is being demonstrated in Zuccotti Park, in New York. They call themselves 'Occupy Wall Street' movement.

Well, the Tahrir Square popular protest succeeded in bringing down the Mubarak regime, although the jury is still out whether, as of now, conditions in Egypt have improved. The Anna Hazare movement has moved on to the next stage, with him making a public appeal not to vote for the Congress party in the next elections, as they have not yet taken up the Lokpal Bill with the seriousness he feels it deserves. One does not know how the endgame will be played out for the 'Occupy Wall Street' protest, but, according to Bloomberg, it may affect the chances of Republican candidate Mitt Romney which may not be a bad thing.

How successful the protests would turn out to be would depend on how committed the protestors are to affect change, but the pressure such protests put on venal political leaders, globally, to clean up their acts, is welcome.

Consider the Anna Hazare movement to have a stronger Lokpal, or ombudsman, with powers to investigate cases of corruption against public officials. Our Government has been pussyfooting on the issue and has even refused to request Governments, such as Switzerland, who are willing to provide information if requested, to do so! The only explanation is that there are people in Government, or friends of theirs, with such accounts. Now both UK and Germany have shown the way, by striking deals with the Swiss, which allow the names to be kept confidential, but the money to be taxed.

Details of these deals are now being revealed. Swiss banks would tax the principal amounts lying with them, at rates varying between 19 to 34%, depending on the amount of time the money is lying there, and then tax the income on the balance. The UK Government is expected to get upto 5 billion pounds sterling in the first year. Why does our Government not do the same? The money could then be used to provide food security for the poor, without having to enter into time wasting controversies about where the poverty line is.

In a way, the Anna Hazare movement, or the Tahrir Square movement or the Zuccotti Park 'Occupy Wall Street' one are all pointing to the protest by the majority against Governments which create policies favouring an elite few. This can, and does, affect the economy.

The India growth story is taking a hit because of poor governance.