Posts from the ‘ Corruption ’ Category

Not to be fooled by his mild manner or youthful expressions, Shaffi Mather is in fact vociferous when it comes to putting an end to corruption.  His latest passion is what he calls “BribeBusters,” inspired by the 1984 film Ghostbusters! Bribebusters was set up last year as a BPO-like social venture with a team of legal experts to help citizens and institutions fight bribery.  Shaffi is not only a serial entrepreneur, but also a serial social entrepreneur.  He helped build Kerala’s leading real estate company, India’s first mall, and then start-up retail ventures for several large Indian corporations.  He then went on to set up 1298 (see post under ‘Health Care” on this blog), India’s leading private ambulance service, and Education Access For All, a rural education NGO.

The World Bank estimates that over $1 trillion is spent globally on bribes every year.  According to Transparency International, $40 to $50 billion per year is spent on “mega-corruption,” or corruption between big businesses and government officials in India alone.  In countries like India, bribery takes place at every level—from procuring a cooking gas cylinder to gaining entry into a hospital to acquiring a contract to build an airport.  The impact of corruption is well established.  Most research suggests a direct correlation between corruption and increasing income disparity.  The reason is obvious. Corruption limits access to basic infrastructure, promotes injustice and disparages merit in society.

Unbeknownst to many, it is possible and beneficial to do business and carry out life corruption-free in countries like India.  It simply requires a strong stomach and a slightly longer-term view, and many successful individuals and institutions have demonstrated that.  While still underdeveloped, many countries like India do have a strong enough legal infrastructure to operate with full transparency.  This is where Bribebusters comes in.  For a fee, an individual or an institution, when confronted with a request for a bribe, can hire Bribebusters to prevent it from taking place.  Bribebusters uses only legally established means to stop the action.  For example, the recently passed Right to Information Act allows any citizen to request public information from a government body, which must revert within 30 days.  So far, Bribebusters has handled about 100 cases successfully, mainly in its home state of Kerala.  Interestingly, in many cases the perpetrator simply backs off after Bribebusters makes first contact.  At this stage, the cases are smaller ones, ranging from getting a passport renewed to registering a new company.  Over the next several years, Shaffi plans to take Bribebusters national, and with his keen eye for injustice, will certainly make anyone in a position of power think twice before asking for a bribe.

According to Transparency International, a Berlin-based civil society that studies corruption, the value of petty corruption in India exceeds Rs 20,000 crores (approximately US$4 billion) every year.  In addition, the society estimates that an additional Rs 200,000 to Rs 250,000 crores (about US$40 to US$50 billion) per year is spent on “mega-corruption,” or corruption between big business and government officials.  In surveys, 80% of households admit to paying bribes to the police, 48% for land records and registration, 47% to the judiciary, 27% to government hospitals and 28% for other routine services.

Yesterday, I had dinner with one gentleman named Mahesh and his family in the village of Yavat in rural Maharashtra.  We spoke about the day-to-day areas where he faced resistance by officials, and would sometimes need to pay a bribe.  Examples include getting an erroneous bill corrected by the state electricity company or getting a ration card re-issued if it was lost.  Mahesh is a determined fellow, and would usually fight to get things done without bribing, but sometimes succumbed when he felt overwhelmed or was short on time.  We spoke about ways to put an end to this and had an interesting brainstorming session.  We finally decided that Mahesh would speak to about ten friends in his neighborhood.  He would see if they were willing to take a written pledge to stop engaging in petty corruption completely and rough it out when necessary.  The ten  friends would serve as a support group.  Whenever something happens to one of its members, the others would step in to help.  We figured that pretty quickly, this group will be known as “those who don’t pay,” and officials will get tired of requesting money from them.  Hopefully, over time, others in the village will hear of their progress and join in.  Sometimes, it is hard to take action alone, but the power of a group is another matter.  Mahesh is excited and plans to speak with his neighbors this week.

For development to take place, it is crucial to stop the “administrative bleed.”  Countries like India are prospering economically, and have the resources, but much of it is being siphoned to build fancy homes or to invest in road side bars.  Hopefully, this will be a small, but “viral” step in putting a stop to that.