Sunday, February 16, 2014

Self deception is natural.

Human beings have an inbuilt capacity for justifying even the most craven act. After all no one would like to think of himself as a thieving, lying, unscrupulous scoundrel. A survey published in the Hindustan Times is a vivid illustration. The survey asked business leaders in India their opinion about the ease of doing business in the country and the role of the government. When it comes to the government the survey seems to reflect common consent. Business leaders are of the opinion that the government is helpful to a small extent in consulting industry on major policy shifts, in incorporating preferences of industry in policies, in taking into account global trade and finance and transparency of decision making. However, the deception comes when asked about itself. A massive 92.3% think that Business Society is efficient as opposed to 41% of Political Executive and 59% of Bureaucracy. And 89.8% think that Business Society in honest as opposed to 30,8% of Political Executive and 66.7% of the Bureaucracy. Why are the answers suspect? In response to the question - " Does the government allow businessmen to break rules and get away with it?" 59% thought it was to a small extent and 33.3% thought that it was to a large extent, for a total of 92.3% who thought that they could break rules with impunity. That is precisely what corruption is. To the question - " Is obtaining a business license associated with corruption?" 46.2% said it was to a small extent and 53.8% said it was to a large extent, making a total of 100%. That means all businessmen are paying bribes to obtain licenses. Which means 100% of businessmen in India are corrupt. When you pay huge bribes to obtain a license there is little money left to obtain land and build factories. So we export iron ore or iron pellets but not high quality steel which would add value and increase earnings. A few years back there was a bitter battle between 2 brothers one of whom wanted charge $4.2 instead of $2.34 for gas from the KG Basin. The government fought for the increase and won. The moment the judgement was out the 2 brothers went to Tirupati to give thanks. Then gas supply fell off and the price has been increased to $8.4. Through political influence business fellows have borrowed huge amounts which they are refusing to pay. Banks are facing massive bad loans. That is why there is little business in India. After all, even Diwali lights are made in China.

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