Scandal Bares Corruption Hampering India’s Growth –

India is the world’s largest democracy, but an uruly one to be certain–even having a rough time of things lately.  Will it fare any better in efforts to reign in corruption?

Coalgate, as the scandal is now known here, is centered on the opaque government allotment process that enabled well-connected businessmen and politicians to obtain rights to undeveloped coal fields. Investigators are now looking at whether Mr. Jayaswal and Vijay Darda, a member of Parliament, conspired to fraudulently obtain five lucrative coal allocations. Naveen Jindal, another lawmaker and one of India’s richest industrialists, is also reportedly under investigation.

Even as the scandal has renewed public anger about rising official graft and the state of the economy, Coalgate has provided fresh ammunition for those who say India’s politicians have become so venal and feckless that they are no longer able or willing to address the country’s entrenched problems.

via Scandal Bares Corruption Hampering India’s Growth –


3 thoughts on “Scandal Bares Corruption Hampering India’s Growth –”

  1. Politics and the private section are too intertwined in India today for economic progress to occur. Coalgate represents the hurdle that must be overcome. The international debate now argues whether political or economic reform will be effective and which type of reform must occur first.

    If India can deal with this political corruption, reforms may become effective. In an interesting blog post, the idea of Walmart entering the Indian world is discussed. The true problem seems to be supply issues and not a lack in demand. Like in Coalgate, the politicians are ruling the economic resources the country offers. By offering companies like Walmart, Tesco, and international airlines a place in the Indian economy, it may be possible to jumpstart the economy. The true question lies in whether or not corporations will destroy the small businesses reliant on the small local demand they receive for their local goods. Either way, it is greatly apparent that joint political and economic reform are necessary to overhaul India.

  2. This not surprising, india has a corruption rate of 3.3 according to the Corruption perception Index and falls in the 21.3 percentile of countries with a similar level of corruption. One of the reasons why the situation has not improved is because India is diverting the attention from the real problem of corruption and it is instead focusing on other problems that are not the root of the issue. India is focusing on attacking Comptroller and Auditor General (CAG) but congress should focus on attacking a different kind of CAG (corruption, atankwad (terrorism), and ghotala (scams)), which is what actually matters right now. In addition, it is necessary for other parties to oversee the Indian National Congress Party to reduce corruption among the representatives.

    Corruption Perception Index 2010

  3. I think this scandal will really help India to reform. India has had corruption problems for a long time and has become part of the status quo. This time its different because of the recent power outages. These blackouts have already started a discussion about reforming the energy sector. Now that the political scandal can be tied to problems in the coal industry there I think there will be heavy pressure for reforms because a lack of electricity is something large portions of the country relate to.

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