India Insight

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.

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.

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.”

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 ?

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?

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.

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?

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 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 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.