India's Telecoms scandals: Megahurts
In short, this well documented article portrayed a fair picture of the India's telecom scandal that happened recently. This is one example of the corruption problem of the India's government. Put in another level, this is a good example of the first public failure from which a market economy like India can suffer: the capture of regulators.
I like the way this article delineate the ramifications from this corruption occurrence as its conclusion. It hurts in total a lot more than it benefit to some.
3 comments:
Corruption in India is a serious problem and certainly hurts the efficiency of the economy. The corruption in India is viewed by some people as a failure of the democratic political system, as national policies are difficult to be brought to the local level. However, corruption in a democratic nation like India is different from corruption in centralized countries, since corruption in India is more on the local level. It is hard to say whether market economy or democratic political system has a correlation with corruption. Maybe corruption is simply a cultural problem.
I think this article shows the need for government oversight in certain industries to promote perfect markets. If there are non competitive bids for certain finite resources then private business has incentives to cheat consumers.
It is very unfortunate to read about something like this. You can't help but feel for all of the citizens of India who are already struggling and it becomes even more difficult when your government is under such corruption.
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