I once paid a cop 30 ringgit (about $10 then) for making an apparently illegal left-hand turn in Kuala Lumpur. Scores of drivers in front of me were also handing over their "instant fines", discreetly enclosed within the policeman's ticketing folder. It was days ahead of a major holiday and the cops were collecting their holiday bonus from the public.

Malaysia opposition leader Anwar Ibrahim holds a disc he says contains evidence of judge-fixing in Malaysia 

I felt bad about this, of course. What I was doing was illegal, immoral and perpetuating an insidious culture that goes by many names in the East -- "baksheesh" in India, "Ali Baba" (and his 40 thieves) in Malaysia, "swap" in Indonesia (means "to feed").  But the policeman pointed out I would have to take off the good part of a day to go to court and pay 10 times as much to the judge. So I rationalised: "When in Rome..."

Alas it was not the first time, nor would it be the last that I have (ahem) paid an "informal levy" to officialdom. I've given baksheesh to the phone company in India to get a telephone installed, and to get a driver's license without a test (no wonder there are so many accidents in India.)  I've paid the immigration officer at Jakarta airport to let me in with a nearly expired passport.

Many of my friends in Asia have similar tales to tell about bribing customs agents, power companies, hospitals, schools -- anybody with the power to give a license or provide a service. A couple of bucks here, a couple there. Pretty soon you're talking about real money. Daniel Kaufmann, who spearheaded the World Bank's efforts to improve the study of governance and the rule of law estimates that $1 trillion of bribes are paid every year. A Reuters series on corruption in Asia found that perceptions of corruption in the emerging markets of Asia have not improved much over the years and have even declined in some cases. This is despite a growing revulsion among people in those countries for business as usual on the "demand" or government side, and a growing realisation from companies on the "supply side" of the bribery equation that payola is simply bad for business.

  Protester holds a  wanted poster for ousted Thai premier Thaksin Shinawatra at a mass anti-government rally in Bangkok.

Part of the problem is mindset and a major attitude adjustment might be needed. People may be fed up with "money politics" and crony capitalism in their countries, but they still pay off people in their neighbourhoods. A U.S. National Bureau of Economic Research study on unpaid parking fines issued to diplomats in New York, home to the U.N., showed Southeast Asian nations again among the league leaders and a remarkable correlation with more conventional measures of corruption. You can take the man out of his corrupt country, but you can't take the culture of corruption out of the man. 

Anti-graft fighters model uniforms that those convicted of corruption offenses inIndonesia willbe required to wear in court and jail.

    For years, Indonesia ranked among the most corrupt countries in the world.  It permeates almost every level of society, reducing the country's appeal to foreign investors, and curbing Indonesia's potential for growth.  Today, Indonesia's anti-corruption agency, known by its acronym KPK, has won plenty of media attention with its Jame Bond-like undercover exploits against corrupt officials.  The government is also trying to get at the root of the problem by sending officials and judges to "anti-corruption school.

    Passers-by in Jakarta walk past a poster that reads "fight corruption." 

Some OECD countries will even let you take a tax deduction for providing "facilitation payments" to get routine services such as a phone installed. Facilitation payment? Hello, it's called a bribe, payola, grease, ice, a backhander. It's corruption, the dictionary definitions of which include moral perversion, depravity, debasement, not to mention rottenness. Okay, that's a little harsh. We're not talking about the moral equivalent of, say, paedophilia. But it's surely a slippery slope from giving the cop some lunch money, to bribing the customs guy to look the other way on a smuggled shipment, to paying off politicians.

Ramon Navaratnam, 73, the Transparency International Malaysia President told me the battle for him started when he was a young man in the finance ministry and he came home one night from work to find a case of whisky on his doorstep from a company bidding on a government contract. "It took a lot of doing, but the company finally took the whisky away. "If I had taken that box of whisky, I can never say no later on."

Of all the things to get exercised about, yoga would seem to be an unlikely candidate for controversy. But such has been the case in Malaysia this week.

Malaysia's prime minister declared on Wednesday that Muslims can after all practice the Indian exercise regime, so long as they avoid the meditation and chantings that reflect Hindu philosophy. This came after Malaysia's National Fatwa Council told Muslims to roll up their exercise mats and stop contorting their limbs because yoga could destroy the faith of Muslims.

It has been a tough month for the fatwa council chairman, Abdul Shukor Husin, who in late October issued an edict against young women wearing trousers, saying that was a slippery path to
lesbianism. Gay sex is outlawed in Malaysia.

The council's rulings, and other religious controversies, might at first blush seem to indicate a growing strain of conservative Islam in mostly Muslim Malaysia. But it could also
reflect the growing unease of Islamic authorities in defending the faith in a rapidly modernising Malaysia where non-Muslims constitute 40 percent of the population and are increasingly
asserting their rights.

The yoga fatwa stirred up a hornet's next, not only in the blogosphere where that could be expected, but in another deeply conservative Malaysian institution -- the sultans.  Sultan Sharafuddin Idris Shah, who presides ceremonially over the central state of Selangor, said Abdul's fatwa council should have consulted the nine hereditary Malay rulers who take turns being Malaysia's king before announcing the ruling.  The highly unusual comment from one of the sultans on a
policy matter suggests some discord about who speaks for Malaysia's Muslims on matters of faith. Islam is the official religion in multi-religious Malaysia and the constitution designates the nine sultans as guardians of the faith. The (rotating) king is the head of Islam in Malaysia.

The sultans, for their part, have seen what remains of their secular powers eroded over the years, particularly under the two-decade administration of former prime minister Mahathir
Mohamad. They could be defending a last bastion of royal prerogoative in the religious arena.

Prime Minister Abdullah Ahmad Badaw, who has been preaching a moderate brand of Islam called Islam Hadhari, moved to contain the damage saying Muslims can do exercises like the "sun
salutation" so long as they don't start chanting.

The fatwa council's rulings, in any case, are not legally binding until they are adopted as national laws or sharia (Islamic) laws in individual states. There seems to be little appetite for that. No laws have been made against young women wearing trousers. The government in May dropped a proposal to restrict women from travelling abroad by themselves after a storm of derision from women activist groups.

But even as the flap over yoga is relaxing, the government is crossing swords with Christian groups.

A Christian federation  claimed Bibles were seized at entry points earlier this year. Malaysian Catholics are having an ontological argument with the authorities about the word "Allah".
The government banned the Malay-language section of a Catholic weekly newspaper from using the word, saying it creates confusion among Muslims. Catholics say Allah is simply the Arabic word for
"God", and has long been used in Malay-language Bibles. (A Dutch bishop has stirred debate in Europe with a similar argument)

Non-muslims, who constitute 40 percent of Malaysia's population, sometimes worry that things such as the fuss over fatwas and words for God, may augur a mini-clash of civilisations in Malaysia, which last year saw a harsh crackdown on Indian rights protesters. It was one year ago that 10,000 ethnic Indians defied tear gas and waterr cannon to voice complaints of racial and religious discrimination in its biggest ever anti-government street protest.

Security was tight at the entrance to Gate No. 7 of the Jama Masjid in Old Delhi, a 17th century mosque built by Mughal kings, and the venue on Tuesday for a gathering of Muslim leaders from across the country to debate the persecution of Muslims.

Police shooed away fruit vendors and cycle rickshaws spilling over from the crowded market nearby, while others stood around the metal detectors at the entrance while their colleagues cased out the giant white shamiana inside with sniffer dogs under the slowly revolving ceiling fans.

 A full half hour after the scheduled time, when only the first few rows of seats were occupied, Maulana Naksh Bandi of the Jama Masjid began the proceedings, inviting various leaders to the dais, and declaring in Urdu: “there is no law, there is no justice for us. It is the rule of the jungle.”

Pausing to take a call on his mobile, and to recognise leaders who slowly filed in, some helped by their assistants, the Maulana said that staying silent would only lead to a more terrible future for Muslims in the country.

Bombings by suspected Islamist militants have killed hundreds of people in recent months, and Muslim leaders accuse the police of indiscriminate arrests of young Muslim men who have been labelled as terrorists and paraded before the media.

Next came Maulana Syed Ahmed Bukhari, influential leader of the Jama Masjid mosque, the largest in north India, who said Muslims needed to draw up a blueprint to deal with the circumstances, with even such practical solutions as legal help
for those being held by the police.

His speech, also in Urdu, was by turn fiery and angry, and at all times impassioned, its rhythym broken only by latecomers whom he acknowledged, and frequent shouts of “Allah-O-Akbar” (God is Great) among the audience who now filled all the seats.

I was struck by the anger felt among the listeners, the quieter ones of whom nodded in assent and said “beshak” (certainly); it was another sign of how communal politics was growing in India and of how Muslims are fighting to be heard.

As the sun travelled higher, glasses of cold water were passed around, but there was no cooling the Maulana, who accused the major political parties of trying to curry favour with the Muslims ahead of the 2009 election.

But Muslim leaders including the Maulana were equally political, said Seema Desai, an analyst at consultancy Eurasia Group in London: “Muslim leaders will be heard more than might have been the case in the run up to the national elections,” she said.

“But as long as Indian political parties think along communal lines its hard to see how long lasting solutions will be found.”   
     

Last month, authorities in a southern Indian state fined people caught urinating in public view for a few days.

This week, officials in a remote town started offering people money for using public urinals.

Quite amused reading these news items, I wonder whether we are witnessing the winds of change finally in India or are we just watching another piece of local image-building exercise before elections ?

In India, a drive to ensure cleanliness in streets for a week or so is a common exercise, but people often forget such drives in a hurry and the street corners are suddenly smelling again and people using handkerchiefs and sometimes masks to cover their nose.

But the novel idea of asking people to earn money by using a public urinal was certainly worth noticing I thought.

 Dozens of people are queuing up to use toilets in Musiri, a remote town in Tamil Nadu state, where authorities are succeeding in keeping street corners clean with the new scheme.

 The urine was also being collected and tested for its efficacy as a crop fertiliser, an official of Tamil Nadu’s  agricultural university said.

The poor of Musiri, are earning upto a dollar a month and very happy to keep the street corners clean.

 Will initiatives like fining people or offering money work in a country like India, where basic sanitation eludes millions and people flout rules without bothering about the law ?

You could be forgiven for thinking that the civilian nuclear deal with the United States is all about whether India holds early elections or not.

Every newspaper is speculating if Prime Minister Manmohan Singh, who has staked his personal reputation on the deal, will resign to disassociate himself from an administration that failed to save a pact keenly watched by the world.

But are these the arguments India should be debating in the short-term or should we be discussing the real benefits and drawbacks of the deal?

The communists oppose the deal, in large part because they see it as a front for Washington’s strategic bulwark against a rising China and increasingly unstable Pakistan.

Besides, they say there are many holes in the deal that Washington will use to manipulate India’s foreign and strategic programmes, and that nuclear energy is not a solution to the shortage of electricity in the country or rising oil prices.

Why? Because nuclear energy can not meet India’s huge oil consumption in the transport sector, is expensive to produce and will expose India to manipulations by a small international cartel of uranium suppliers.

But most Indians feel, if straw polls by newspaper and television channels are to be believed the nuclear deal is good for India: The agreement is meant to provide India with the means to produce clean energy — a key constraint to economic growth. And the rise in crude prices underlines need for diversified sources of energy (even if nuclear will take ages to fill the gap).

Internationally, the accord represents a long overdue acceptance of India as a responsible nuclear power.

From the pro-deal camp here are a few points to ponder:

* Even if relations sour with the United States, India can turn to France, Russia, Australia or other uranium producers for supplies, courtesy the waiver from the Nuclear Suppliers Group which is independent of the deal with Washington?

* Why should India not use the deal to get a waiver from NSG and the opportunity to clear its name as a nuclear pariah state?

If the deal falls through, it is unlikely Washington — or any other nuclear nation — will broach the idea of selling nuclear fuel to India anytime soon.

But will that outcome make India more dependent on outside sources for energy, and weaken its own economic prospects against the growing clout of China?

This is the kind of debate that India would benefit from. Focusing on elections may only reap short term political benefits.

Only last year Indian policymakers were showing off the strong fundamentals of the economy to the world and pressing for a seat at the high table of global fora. Everything was going well — high growth, a surging stockmarket and a lot of attention from global investors attention.

But high oil prices and rising inflation threaten to bring the India growth story to its knees. Finance Minister PalaniappanChidambaram’s speech at a meeting of oil producing and consuming nations in Jeddah on Sunday showed the cracks in India’s confidence levels.

No doubt oil prices have spiralled, threatening the economic gains made by developing countries, as Chidambaram said in his speech.

But in the case of India was it misplaced optimism about growth or lethargy in getting the right policies on the ground that made things worse?

It pained me to read Chidambaram speech, in which he expresses “a heavy heart and foreboding” and says meeting India’s Millennium Development Goals had been imperilled by soaring crude oil prices.

But it is both a frank admission of the dangers facing developing countries, including India, and a fervent call for cracking down on speculators who, according to the minister, are playing havoc with the fortunes of nations. For the complete speech please click on
www.pib.nic.in.

The Congress party-led government contains three key reformers — Prime Minister Manmohan Singh, Finance Minister Palaniappan Chidambaram and Deputy Chairman of the Planning Commission Montek Singh Ahluwalia — and it had four years to get things moving. But they appear to have succumbed to their communist allies on policies
and reforms that investors see as vital for India’s growth.

The oil surge and rising prices pose huge challenges for Indian policymakers. Strong measures will be needed. But will India’s leaders bite the bullet?

So it’s official. India has finally raised fuel prices, by more than most people expected. A hike in diesel prices in particular is sure to feed through into overall inflation. At the same the government removed the import duty on crude oil.

We’d be keen on your opinion. Has the government got it right?

Despite the price rises, oil companies are still going to be losing huge amounts of money and gas-guzzling cars are still going to be heavily subsidized by ordinary taxpayers. The oil ministry had even argued for steeper price hikes.

Are subsidies really the right way to go in the modern world? Is the government sacrificing good economics on the altar of political populism?

Or should the government have tried harder to protect the poor by keeping fuel prices down despite global inflation in oil? The left says the price rises were avoidable, and the government should instead have cut excise duties more and imposed windfall taxes on private companies.

And is this decision going to have a major impact on the UPA government’s chances of re-election?

Is the sun setting on the Congress-led UPA government? India’s opposition Bharatiya Janata Party (BJP) is certainly riding high after victory in the southern state of Karnataka at the weekend , giving it a first chance to run a government in the south.And it’s the latest in a long losing streak for Congress in state elections. The question is whether the ruling party can turn things around.

The economy certainly isn’t helping. Rising inflation seems to have already wiped out whatever electoral benefits the farmers’ debt waiver might have brought. A slowdown in growth, already apparent in industrial production statistics, won’t help either.

So the first problem for the government is to bring down inflation in time for next year’s national polls.

For now, Prime Minister Manmohan Singh is sounding optimistic, and a favourable monsoon would certainly help. But there is little relief on the horizon from global oil prices, and the government may soon have to bite the bullet and raise domestic fuel prices again.

Reining in inflation will be tough, but not impossible over the next year.

On the political front, all the momentum is with the BJP.

At times, Congress looks disorganised and rudderless. In several elections, Congress seems to have paid the price of failing to nominate a candidate for the chief minister’s job, and relying too much on the pull of the Gandhi family.

At the very top, many analysts are asking if the prime minister has provided the kind of strong leadership his country needs.

But a week is famously a long time in politics, let alone a year. State election defeats don’t bring down governments. It is how the parties react to these mid-term verdicts that can make a real difference.

And it is here that Congress has its chance. The BJP-ruled states of Madhya Pradesh, Rajasthan and Chhattisgarh go to the polls this year, and if voters turf out the incumbents in all three, the BJP could indeed lose some of its shine.

Let’s not forget that only a year ago the BJP was beset by infighting and divided over what its electoral USP was — development or Hindutva. The ageing L.K. Advani does not always strike the right chord with voters across the country, and it is far from clear Gujarat Chief Minister Narendra Modi will emerge as a politician who can garner national support.

I have yet to see a national opinion poll which predicts a clear win for the BJP and its allies. The UPA is losing ground, but the BJP still has a lot of work to do to regain the top spot.

For those Western critics that say Islam does not enough to to condemn terrorism, perhaps they should look at India, home to one of the world’s biggest Muslim populations — around 13 percent of mainly Hindu India’s 1.1 billion people.

 On Wednesday, it was the turn of Khalid Rasheed, head of the oldest madrasa in the northern city of Lucknow — a traditional centre for Muslims and religious scholarship. He rejected terrorism as anti-Islamic after he and his colleagues had been accused of apostasy over their pacifist stance by at group that calls itself the Indian Mujahideen.

Indian Mujahideen made threats against the madrasa in which they also claimed responsibility for last week’s bomb blasts in Jaipur, western India, which killed 63 people.

“The reaction of terrorists to our stand against terror has shown that we were moving in the right direction,” Rasheed said.

   Apparently a “Movement Against Terrorism” has been created by clerics to exhort imams to use Friday prayers at mosques across India to speak out against terrorism.

This was no flash in the pan. Earlier this year, tens of thousands of clerics and students from around India attended a meeting near Delhi at the 150-year-old Darool-Uloom Deoband — whose strict interpretation of Islamic law is said to have inspired the Taliban in Afghanistan — and denounced terrorism as against Islam.

It is not surprising that Rasheed said they had received support from Darool-Uloom Deoband, Indian clerics appear to be increasingly outspoken, perhaps not surprising in a country where there is a centuries-old tradition of preaching religious tolerance.

How much is this outspoken criticism happening in other Muslim countries? And how much is being reported in the Western press? I would be eager to know more.

 Despite a history of religious clashes, India’s tolerance often seems to win through. It was the Mughal Emperor Akbar, who was famed in the 16th century by many for his religious tolerance and who initiated scholarly debates with Muslim, Sikhs, Christians and Hindus.

Many of India’s bombings are blamed on Islamic militants, although few groups every claim responsibility and few people are ever arrested. The attacks have mostly failed to incite Muslim-Hindu tensions.

Here in New Delhi, I always enjoy taking foreign visitors to India to the Sufi shrine in Nizamuddin. My latest guest was a U.S. diplomat based in Pakistan. Hardly allowed out in Islamabad - let alone able to visit a mosque — the diplomat wallowed in the warmth of the visit and the relaxed atmosphere of the Qawwali singers.

The issue of redressing the imbalance of Hinduism's ancient caste system by creating job and college entry quotas for lower caste and other disadvantaged groups in India seems to be gaining headway in an election year. Now it may be the turn for private industry.

Parties across India's political spectrum appear to be seeing caste-based reservations, as the quotas are known, as potential vote winners. It is a sign again that caste consciousness will become ever more important in what in theory is a secular Indian state.

Now multinationals enjoying the fruits of an Indian economic boom may find they are not immune. Much to the horror of many industrialists worried about their international competitiveness.

India's Supreme Court has already this year upheld a government policy to reserve about half of all state college seats for students from lower castes, in what some call the world's biggest affirmative action scheme.

Then, the Indian Express quoted on TuesdayHindu nationalist Bharatiya Janata Party general secretary Gopinath Munde as demanding quotas for lower castes in private companies. His comments were not endorsed officially, but the caste issue was out of the bag for a party that could well win the next general election. The Hindu nationalists' election strategists must realise they could win millions of votes with such policies before a general election due by early 2009.

Turn a few pages of the Indian Expressand there is a full-page advert for Uttar Pradesh Chief Minister Mayawati, known as the "Queen of the Untouchables" and the potential "king maker" in the next general elections. Celebrating her first year in power, she proudly espouses her move to introduce quotas to private companies participating in state partnerships in her state, India's most populous. It was the first prominent policy in India to include private business into the quota system.

I recently returned from Bangalore covering the Karnataka state election in southern India where the Janata Dal (S), the main regional party, made headlines by proposing to reserve about a third of seats in IT companies in Bangalore for local Karnataka residents.

IT multinationals are currently free to hire from anywhere in India -- a policy that has increasingly annoyed many local Karnataka residents. Karnataka has its own language and many feel they are discriminated against as highly-educated Indians move to their state to work .

Most leading businesses have shunned the idea of quotas, worried it will worsen their competiveness in a global market, especially in the fast moving world of IT.

For those that think that all this talk of caste quotes in private industry is just small parties playing politics, remember it was Prime Minister Manmohan Singh, in a 2006 speech, who first raised the spectre of quotas in private industry.

He then called on companies to take voluntary action to help lower castes get jobs, a statement at the time widely seen as a warning to India's booming business sector to act or face possible legislation.

India's economy may be booming, but this debate highlights how these religious and social issues of inclusiveness could dictate the election campaign. And then companies may find they are not immune to the issues of caste and Hinduism, no matter how proud they are of their global branding.