Privatization is the way to eliminate corruption

Privatization is the way to eliminate corruption

The winter session of Parliament is here that started with a debate on the black money controversy. The public, media and other political parties are demanding an answer from the government on black money. The failure on black money and corruption issue is linked to a perceived nexus that exists between big business houses, politicians, weak laws and poor enforcement. India is one the biggest growth markets of the world. However, it is still at 85th position in the study of perceived corruption in different countries. Many people believe that the existing level of corruption can be reduced if India focusses more on privatization. Do you think it’s true? Is Privatization the key to eliminate corruption?

Yes

• The public companies are least bothered about the quantity and quality of the product as they are accountable to the government which again is full of corrupt officials. This nexus is eliminated in the private sector.

• People get involved in corruption when they are not paid well. However the private sector rewards the people with high salaries.

• A private company is liable to answers its customers and stakeholders. The moral product existing in sector hurts corruption.

• The public sector survives with government funds even when they make losses but it is not the same case in the private sector. So, they either have to perform or quit the business. This reduces corruption.

• Private organizations are able to attract more investments based on their performance, and they are able to deliver because profits do not end up between the layers. This ultimately reduces corruption.

No

• The nature of the human being is the major factor responsible for corruption and it cannot be tamed in any sector. Harshad Mehta’s Scam of Rs. 4000 crore, Ketan Parekh Scam of about Rs. 1000 crore and Satyam scam etc. are the various examples of big scams in private sector.

• Even the companies in private sector where the salaries are less, employees don’t have a choice but to involve in unscrupulous activities to get monetary benefits.

• It is the government that encourages corruption as there are no stringent laws to punish the people charged for corrupt activities.

• The only benefit of privatization is the improved quality of products which in no way is related with reduced corruption.

• The national integrity system and freedom of the press are the important factors that have contributed most in making Denmark as least corrupt nation.

• With 6th and 7th pay commissions the salaries of government employees are at par with the private sector. So, we can’t actually blame it on salaries.

Conclusion

Based on the arguments, it is clear that there is no surety that privatization can eliminate corruption. To end corruption, it is necessary for the corporate, bureaucrats and politicians to have fair motives involving welfare of people. The funds released should be used for the main cause and should not make way towards personal accounts. Also, government should implement stringent laws to control corruption. Last but not the least; it is the common people who should take the responsibility to wipe out corruption from both public and private sector.