Thoughts on economics and liberty

Corruption for Dummies: Corruption made REALLY simple

The last person who understood corruption in India was a man called Lord Cornwallis – the British general who was defeated and captured by George Washington, and was later sent to head the East India Company in India.

After Cornwallis NO POLICYMAKER in India has YET understood corruption. (FTI does)


Following on from this blog post, the simple theory is this:

1) You must meet the participation constraint.

You must ensure that good people (honest, intelligent, competent*) are willing to participate in the governance of India. 

2) You must meet the incentive constraint.

You must ensure that incentives are in place for such good people to not deviate into corruption.

[*Note: competent means people who understand capitalism and prosperity, and know how to run a very tight, minimal, but strong government]

That's it. Don't waste time on anything else. Just understand these two lines I've said. 

And if you don't understand what I've just said you have no business to be talking about corruption.

Please read BFN to understand why neither of these two constraints are met in India.  BFN also explains how you can help change things to ensure these constraints are met – by joining the Freedom Team of India

And so, this is the end of the lesson called Corruption for Dummies by Sanjeev Sabhlok.

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