Follow by Email

Friday, August 13, 2010

The basics of Indian Politics - how corruption starts from base

I was thinking from long time to post this but was not getting time for the same, finally I managed to spare some time to tell about the basic functionality model of Indian politics and why it is often referred as politics led by goons. I request to please post your views about the same in the comment section.

It is true that most of the Indian politician are goons who win election by distributing money among the poor people, and the politicians are most after the poor people who can be purchased by distributing a couple of whiskey bottles or by few thousand rupees, which comes down to few hundred rupees in case of Bihar.

I was wondering how can so much dirt get into system that too at every level. well I got answer in few days and here is what I concluded.

Most of the poor people or low income group people(bus drivers, Auto drivers, sweepers ) to list a few are the ones who are very fond of politics not because they like it but to earn money, A person who has no work, no job to earn money is type of hired by the local politician at not much wages but given a commitment that if he/she wins in smallest level election then there would be lots of money around and the person (having no money presently) says a yes and becomes a chela of that to be politician. Now the task is how to earn votes in coming general body election or any other election, Since they have not done anything good for the people but still want to win, they start corrupt practices like giving warnings to people to cast them or face the music(taking advantage of weak police system), In India Police can be termed as goons hired by politicians legally to take money from the literate(well settled individuals). but in case of poor people they dont give such warnings(because they will get nothing in case they even kill the person for not casting the vote to them) So they purchase their votes by paying a meagre amount while also maintaining some sort of ledger of the money spent on whole election campaign. Since they start from smaller area hence people to purchase is very less hence the budget is fixed too. Once they win the election by giving money, bribing police, they feel very happy and first take out the money out from government funds(which is indirectly the taxes collected from the well settled people).

They charge compound interest for their money and fill their stomachs and houses as this stolen money would now become input for purchasing votes for the next level of elections(which covers larger geographical area), The person who helped initially now becomes a legal goon which is used for killing a competitor and the police is used by same politician to show it as either a suicide or road accident(I have not heard of any third type of killing strategy used by the politicians in India for killing of their competitors).

Now when he follows the same strategy and wins the elections again then he becomes the god of the area, which gives him power to do all the illegal activities, drugs, call girls mafias, murders, licenses to builders etc. From all these activities the percentage of now minister's share reaches at end of the day or weekly or monthly(depends on how the politician wants that money) and this is all hard cash. Local police helps in watching that all the illegal activities are going on nicely and they are getting their share at time.

The things shown in movie Rajneeti are very true(however it depicted only the killing of competitors part, I discussed earlier). Now since the whole nexus created by the politician of that area is functioning smoothly he makes a lot of money.

The tragedy here for medium income group or middle class people is that their vote has no effect as the number of poor people surpasses them and would always be the same in future too. but the money which goes into politicians pocket is the one from their taxes :(

Hence no politician ever talks about providing jobs to the people as in that case their own job would end because they know the truth about their doings and no person would ever want that his/her source of income should stop.

So this was my try to depict the working of indian pilitics and indian politicians(in which the middle income group has no effect)


Core investment norms released by RBI

Reserve Bank of India on Friday said core investment companies with assets over Rs 1 billion will be required to obtain certificate of registration from it while the ones below Rs 1 billion need not.

A core investment company means a non-banking finance company which holds not less than 90 per cent of its total assets in the form of investment in equity shares, preference shares, debt or loans in group companies, the bank said.

Indian Forex reserves at $ 287 billion

India's foreign exchange reserves rose to $287.356 billion as on August 6, from $284.183 billion in the previous week, the Reserve Bank of India (RBI).

Foreign exchange reserves include India's Reserve Tranche position in the International Monetary Fund (IMF), the RBI said.