Economist Kaushik Basu (ex-BBC) urges LEGALISING bribe-giving

[Saddle Bronc 124]

http://www.bbc.co.uk/blogs/thereporters/soutikbiswas/2011/04/should_bribe_giving_be_legalised.html

Should bribe giving be legalised?

Southik Biswas, 2011/04/29 05:11 UK

Should bribe giving be legalised to curb corruption? Chief economic adviser to the Indian government and leading economist Kaushik Basu thinks so. In a sharp new paper, Prof Basu, a former BBC columnist, says that the interests of bribe giver and bribe taker are congruent under the present law.

They are both "partners in a crime", and it is in their joint interest to keep the exchange hidden from law. But, Prof Basu argues, if you make bribe giving legal, the interests of the giver and taker collide and it is highly likely that the giver will blow the whistle and the bribe taker will get caught. One caveat: this will work only in checking what Prof Basu calls "harassment bribes" - holding back income tax refunds, property paper work and the like in return for graft - which is widespread in India, "breeding inefficiency and [having a] corrosive effect on civil society".

At a time when India is fiercely debating corruption after being hit by an avalanche of scandals, Prof Basu's radical prescription has predictably kicked up a storm. India's communist politicians - usually suspicious about new ideas - have trashed it as a "dangerous and unethical proposal". "Making it legal to pay bribes," said a communist functionary, "would undermine the values of honesty and integrity. Indeed, it would make people who don't pay bribes look like fools."

It is another matter that it is exceedingly difficult to find Indians who haven't paid a baksheesh in their lives.

Other critics like leading journalist P Sainath offer a more nuanced rebuttal. Bribery, he says, will exist as long as scarcity exists. There is an acute mismatch of demand and supply of government services. Making bribe giving legal will in no way curb bribery in sectors where scarcity exists, he argues. Indeed, Mr Sainath says, it will raise the stakes - making for more expensive bribes or the victims "facing heavier demands". "After all," he writes, "the bribe taker needs to be compensated for the higher risk he runs."

However, I found the highly respected development economist and social activist Jean Dreze's critique most compelling and informed. At the root of Prof Basu's thesis is the assumption that the bribe giver will blow the whistle and put the bribe taker in prison. If that does not happen, what is the use of decriminalising bribe giving?

Prof Dreze picks on this and feels that the chances of the bribe giver blowing the whistle against the taker are slim considering the "huge litigation costs, possible harassment and little chance of getting justice - not a far fetched assumption". A perfectly valid observation considering that India's judiciary crawls at a snail's pace.

The real choice, says Prof Dreze, is between not paying a bribe, and paying a bribe without blowing the whistle. "It is perfectly possible that many people would choose the former if bribing is illegal and punishable, but the latter (paying a bribe) if bribe-giving is legalised," he says.

Clearly the onus is on the bribe giver to nail the taker. How does he or she do it? Prof Basu suggests that the bribe giver will "try to keep evidence of the act of bribery" - a secret photo or jotting the numbers on currency notes handed over and so on - so that "immediately after the bribery" the giver can turn informer and get the taker caught. This is easier said than done.

[Mr. Big Dog 10,747]

He must have gotten an education from the Florida GOP. Bribes to legislators are perfectly legal in this state now. We're no longer the Sunshine State, we're the Pay to Play State.

Edited April 30, 2011 by Mr. Big Dog

[Bad_Daddy 2,209]

http://www.telegraph.co.uk/sport/othersports/commonwealthgames/8472194/Commonwealth-Games-chairman-Suresh-Kalmadi-arrested-as-part-of-corruption-investigation.html

Commonwealth Games chairman Suresh Kalmadi arrested as part of corruption investigation

The chairman of the controversial New Delhi Commonwealth Games, Suresh Kalmadi, has been arrested on suspicion of criminal conspiracy in the awarding of Games contracts, including a £450,000 deal with a London firm over the staging of the Queens Baton relay and a contract with Swiss Timing....etc, etc....

[Gary and Alla 3,694]

Then it is not a bribe.

[Pooky 3,830]

He must have gotten an education from the Florida GOP. Bribes to legislators are perfectly legal in this state now. We're no longer the Sunshine State, we're the Pay to Play State.

You think the Florida GOP is special.

Try the whole American political system, blues and red. In a few cases, they just don't make it so obvious.

[Mr. Big Dog 10,747]

You think the Florida GOP is special.

That they are. Blatant corruption forced the legalized bribery in Florida to be abandoned back in the 80's. But now it's back. Thanks to the veto poof GOP majorities in the state legislature. Not that they need a veto proof majority to do such thing anymore seeing that we now have a crook as governor. He'd be on board.

[Saddle Bronc 124]

He must have gotten an education from the Florida GOP. Bribes to legislators are perfectly legal in this state now. We're no longer the Sunshine State, we're the Pay to Play State.

care to try again rather than spewing so much shaganappi about FL's GOP?

[Pooky 3,830]

That they are. Blatant corruption forced the legalized bribery in Florida to be abandoned back in the 80's. But now it's back. Thanks to the veto poof GOP majorities in the state legislature. Not that they need a veto proof majority to do such thing anymore seeing that we now have a crook as governor. He'd be on board.

Legalized bribery - how is that different from lobbying again? Or corporate political donations? Or union donations?

[Mr. Big Dog 10,747]

Legalized bribery - how is that different from lobbying again? Or corporate political donations? Or union donations?

Well, if you're okay with legalizing open bribery for state legislators, then I suppose you can lobby in your home state for it. I thought there was a good reason that they abandoned this horrendous practice down here a couple of decades ago.

[Pooky 3,830]

Well, if you're okay with legalizing open bribery for state legislators, then I suppose you can lobby in your home state for it. I thought there was a good reason that they abandoned this horrendous practice down here a couple of decades ago.

And you misunderstood that I support the practice how?

I see the equivalent, just named something different, almost everywhere in Washington. The most obvious case involves the healthcare bill, which would never have passed if Senators and Members of Congress hadn't been bought off by the White House. And the hands of the lobbyists, big oil, the pharmaceutical industry, the military industrial bloc, etc. are everywhere in Washington, manipulating, cajoling and forming policy for both sides of the House, all leaving a trail of $$$$s behind them.

As I said earlier, some instances are just more obvious than others. But they all stink.

[Mr. Big Dog 10,747]

I see the equivalent, just named something different, almost everywhere in Washington.

You should read up on leadership funds. There's no such thing in Washington. In Washington, such thing would be considered an ethics violation and people will be ousted. Here in sunny Florida, they allowed themselves to be above any kind of ethics.