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I'm specifically not referring to bribes. That is undoubtedly corruption. >A manufacturer can sell, low quality transformers to electric board. This is goes ag

by aggronn 14y ago

I'm specifically not referring to bribes. That is undoubtedly corruption. >A manufacturer can sell, low quality transformers to electric board. This is goes against public interests. You're going to have to give more details than this in order to make that statement. Are they in a competitive market? Is someone picking winners? What effect does this have on prices? Moreover, is he creating jobs? How is that cheating?

kamaal 14y ago
In India its pretty common to have this scenario. We call it the 'License Raj System'- http://en.wikipedia.org/wiki/Licence_Raj http://en.wikipedia.org/wiki/Licence_Raj Licenses for supplies, manufacturing, export, services etc. Heck nearly everything is controlled by licenses. Which are in turn issued by the government. The Net result is heavy bribes are paid to get licenses. And then bribes are paid to regulators to by pass violations. You might think lobbying and campaign funds are too much of corruption in US. Come to India, you have to pay bribe for everything and anything. To give you a specific scenario. Lets say you bid for a contract to build roads. Lets say you tar roads. Firstly this can be won only through if you are licensed contractors(You have to pay bribe to get one). Then tenders are allocated for the road construction, you have to pay commissions to get selected. Now after heavily bribing your way through all this. The only way you can make profit is by sacrificing quality. Therefore you now use low quality material. If saw you are asked to tar the road 8 inches, you do only 3 inches. You don't tar lanes. The quality of tar you use doesn't last one rainy season. Regulatory authorities are severely bribed to over look all this. This is the regular story in India, In nearly ever walk of life. This happens from birth to death. People even bribe for birth and death certificates, voter identification cards, passports. You name it, and there is corruption associated with it.

by aggronn 14y ago

kamaal 14y ago

In India its pretty common to have this scenario. We call it the 'License Raj System'- http://en.wikipedia.org/wiki/Licence_Raj http://en.wikipedia.org/wiki/Licence_Raj Licenses for supplies, manufacturing, export, services etc. Heck nearly everything is controlled by licenses. Which are in turn issued by the government. The Net result is heavy bribes are paid to get licenses. And then bribes are paid to regulators to by pass violations. You might think lobbying and campaign funds are too much of corruption in US. Come to India, you have to pay bribe for everything and anything. To give you a specific scenario. Lets say you bid for a contract to build roads. Lets say you tar roads. Firstly this can be won only through if you are licensed contractors(You have to pay bribe to get one). Then tenders are allocated for the road construction, you have to pay commissions to get selected. Now after heavily bribing your way through all this. The only way you can make profit is by sacrificing quality. Therefore you now use low quality material. If saw you are asked to tar the road 8 inches, you do only 3 inches. You don't tar lanes. The quality of tar you use doesn't last one rainy season. Regulatory authorities are severely bribed to over look all this. This is the regular story in India, In nearly ever walk of life. This happens from birth to death. People even bribe for birth and death certificates, voter identification cards, passports. You name it, and there is corruption associated with it.