Sunday, November 16, 2014

From Corruption to Confusion



Until a few months ago, India was in a state of Corruption. Now it is in a state of Confusion.

There are so many words have been used for corruption; let us categorize them:

  • common men and women facing corruption in their daily life
  • donations to political party
  • large scale theft such as 2G
  • local business person evade tax
  • overseas business person investment abroad
Corruption in daily life of common citizen; no Prime Minister could fix this menace. Citizen have to go through this sufferings on daily basis. Paying bribe to traffic police and so on; these are all happening on small scale; but on a very high volume; this cannot be eliminated in India.

In United States, these small scale corruption is not happening. They may have large scale corruption in Washington; but not in local government.

So, in India, the local government system has to be strengthened. It has to be empowered and made effective.

Right now, a traffic policeman in Kanyakumari city is recruited by the Tamilnadu State Police department in Chennai. How could a manager, sitting in Chennai could effectively manage a traffic policeman in Kanyakumari. So, this ineffective government organizational setup is the root cause for corruption in daily life.

In United States, local government have police authority; they manage traffic; stampede; domestic violence; and other small crimes. Then the State police force; FBI, they come into picture for larger crimes.

So, fix the government setup. Just talking about corruption is no good.



Then, donations to political parties. Radha Timbo is in the list. Radha Timbo donated money to political parties. A few decades ago, political parties used to beg for money from the public. Nowadays, they don't ask for any donations from the public. Only Arvind Kejriwal asks for donation; not other poltical parties.

Even communists have enough asset to run their political party. They used to beg for money by standing in the street corners with their tin box. Also, they used to raise money by selling their books. Not any more.

Arvind Kejriwal wasted all his donations. Arvind Kejriwal received donations in dollars; but with his irresponsible acts like, contesting against Narendra Modi in Varanasi; just wasted all those hard-earned dollars of NRIs.

So, donations from business houses are no longer considered as bribes; and these amount doesn't qualified to be considered as corruption.
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Then 2G. In fact, we need to be thankful to those persons involved in 2G. It is an innovation in corruption.   Until the CAG released the figure like 1.7 lakhs of crores; nobody could; even in their wild imagination could arrive at that fantastic number. It is huge; it is beyond imagination; nobody could realize the hidden potential of Wi-Fi. It is a fact like E=mc2. Even other countries come to realize the huge potential. They should be awarded; not with punishment.

2G doesn't qualify to be categorized as corruption. No body gave money to anybody to achieve any result. It is a wealth; wealth of the nation; they stole the wealth; it is a theft. They may be charged under the category of robbery or theft.
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Local business person evade tax. A huge educated community is actively engaged in this activity. In United States, the tax professionals make sure that their clients pay the right tax to the government.

In India, the Chartered Accountants and other tax professionals make sure that their clients pay the minimum tax to the government. Fix this CA community; black money in India will be gone completely.

In fact, Indian business person have no knowledge about avoiding tax. These CA associates do all that tricks; the business person just sign the documents. So, have a strict audit on the licence of these CA professionals.

So, far, no governments have understood the problems; and they have not taken any action against this internal black money issue.

All other country political leaders suggest India; first fix your internal black money and tax system; then you could worry about foreign investment.
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Overseas business person and their investment abroad.

It is the usual conflict between have and have not.

Compare to those overseas business persons, Ram Jethmalani, Subramanian Swamy & Arvind Kejriwal are have not.

These have not, cannot generate any wealth; they live their life on others wealth.

Look at their profession; lawyers. Lawyers don't generate any wealth.

In fact, in ancient India, there were no profession called lawyers. Only the British created this profession. Then Indians followed the British. Right from Mohandas Karamchand Gandhi, Jinna, Nehru and so many others; they went to London; not to study engineering or doctor; just the law.

The British created the Magna Carta and the entire judicial system. They had to create Magna Carta; because of their ineffective King. The King was not delivering justice; so the citizens had to take the Judicial authority away from the King.

King Pandyan was an effective king. When Kovalan was brought to the court of King Pandyan; the king, based on the evidence present; immediately gave his judgment; and Kovalan was executed.

There were no lawyers; lawyers are interpreters to the judge. The king didn't need any interpreter. The king could directly communicate with the accused. So, there were no public prosecutors to represent Kovalan.

Even Kannghi didn't look for any lawyer. Kannaghi went to the court directly; and presented her case to the king.
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Just observe an overseas business person. Without coming to a conclusion; just observe.

For instance, let us take Shibulal of Infosys.

Shibulal have invested in apartments abroad; gets rental income  out of these apartments; pays taxes on those rental income in those countries. Out of that income, Shibulal may have bought new apartments too.

So, overseas business person may not be keeping all their wealth in savings account; they may invested in business abroad; properties abroad; stocks and shares abroad.

You may question; the source of income for the initial investment; when Shibulal bought the first apartment in Seattle, what was the source of income.
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In general, just ask a simple question to the travellers at the departure section of the international airport.

How much dollar do you carry? How do you plan to manage your expenses abroad?

When you go for US Visa, they do ask this question. So, let Indian Government ask this question.

When Siviaji or MGR made pictures abroad, they used to go to RBI and ask for exchange. RBI may authorize a certain amount of dollars to them; they need to manage their expenses within that amount.

Nowadays, nobody goes to RBI and ask for exchange. They just board the plane without any worry about any budget.

Things have changed a lot. Even Ram Jethmalani spends months in stay in abroad. It is impossible to keep track of all the wealth movement.

All Indian TV channels are available in United States; do they make income in dollars.

Bitcoin is now popular. Moreover, people have started practicing the traditional indian business model; i give you hardware; you give me the software; no money transaction involved. Exchange of materials.
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So, the current government is in a state of confusion.





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