Two recent developments - seemingly unrelated - have been hogging the headlines.
The former Chief Minister of Jharkhand is being investigated for amassing wealth beyond known means. Apparently, this money was earned through handing out mining rights. The interesting question to ask is - since mining has not started in most places, how was the money made - clearly, through the "sale" of the mining rights. Who paid? Surely those that benefited most - those who received these rights! Is it not strange that none of these companies are being investigated? Now you know why Indian Steel companies claim to be among the lowest-cost producers of steel in the world.
Almost simultaneously, the Central Government has started an aggressive campaign against the maoists. Maoist activity is undoubtedly a big problem in India - and has been for several decades. So why the thrust NOW? Has it anything to do with the fact that corporate India's new mines are in maoist infested areas? There was need to make these areas safe for mining. Hence the appointment of the redoubtable Mr. Chidambaram (formerly a director on the Board of Sterlite - one of the largest resources companies in India) as Home Minister, and the drive against Maoists under his leadership.
India's problem now wears corporate hues.
1 comment:
Broad relationship identified between high level corruption, government policy framework and corporate profits is very interesting in this particular case. It appears that India is moving towards US style governance where the corporates will hire lobbyists for a new profitable idea, law or regulation. It can also be argued that such a system already exists in India where much of the bureaucracy plays the role of lobbyists and brokers between the politicians and corporates. None the less, we would legalize (or have legalized) high level corruption, to make corporates bigger than the State or Public.
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