How to remove corruption from India – the ACTUAL solution Basically, we need to make Indias governance incentive compatible - to ensure that interests of the elected representatives are aligned with the interests of the citizens. If things were as easy as passing a Bill, India would have resolved its many problems long ago by legislating them away! Being committed to a squeaky clean government A system of performance bonuses for all MPs and MLAs will be introduced: For every 1 per cent increase in per capita GDP growth beyond 5 per cent per annum, all our representatives will get a one-off 5 per cent bonus. For every 1 per cent permanent reduction – defined as a reduction sustained for two years – in the number of people below the poverty line, MPs and MLAs will get a permanent 1 per cent increase in their base salary. Once the negative income tax system is fully established, the entire reduction in poverty will be incorporated permanently into the base salary. For every ten ranks that India rises on a sustained basis of two years in Transparency International rankings, there will be a 5 per cent one-off bonus. There will be a permanent 20 per cent increase on base salary upon India’s becoming the world’s least corrupt country for two years in a row. The sum of these bonuses will be limited to a total of 50 per cent of the base salary in any given year. A virtuous cycle of morality will thus be established which will not only eliminate poverty but overcome the vicious cycle of corruption established by Nehruvian socialism. Legislation will also be introduced to create a genuinely independent Political Representative Incentives Commission charged with research on, and making recommendations on the following: a compensation mechanism for peoples’ representatives that will eliminate all reasonably foreseeable incentives for corruption, or will otherwise promote the freedom of citizens; and any matter related to the mechanisms of political representation, such as electoral laws. The Commission would consult widely with the community and look at international best practice. The recommendations of the Commission, made at its sole discretion and whenever it considers fit, would bind the public exchequer, i.e. there will be no voting on its recommendations. This will eliminate the dilemma faced by political representatives who find the public or media unsupportive when they vote for an increase in their own salaries. Such lack of public support creates strong incentives for subterfuge through a host of ‘perquisites’ and underhand dealings. The independent commission will bring sanity into a matter as fundamental and important as this.Please tell me if I am wrong somewhere or I missed something.
Posted on: Wed, 12 Mar 2014 14:29:55 +0000
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