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Thursday, October 21, 2010

Corruption Without Games


As I write this article,the CBI and IT sleuths are busy raiding houses ,offices and other premises of various parties involved in the recently concluded 2010 Common Wealth Games.While there is no denying the fact that India messed up the games badly and the entire exercise of hosting games benefited nobody except the money laundering politicians and their accomplices.However the need of the hour is to deliberate and find out a way to avoid this embarassment in future.

The CWG games were hosted by India with the twin aim of developing sports and other infrastructure in Delhi as well as inform the world of arrival of New Delhi in the global economic world.The work and expenses of hosting CWG was jointly done and financed by the GoI and Delhi Government.In a typical example of 20th century socialist movement.DDA,GoI and CWG society took upon themselves the $8 billion project of creating and marketing the necessary infrastructure and games.

The result was disastrous with corruption allegations appearing from a motely $100 contract of leasing out taxies to multi million dollar scams surfacing in construction of games village.As I write this artcle the IT authorities just raided EMAR MGF (a global real estate firm) and accused them of being involved in a $200 mn scam with Delhi goverment

Corruption and government have been synonymous from time immemorial.The faliure of the USSR and fall of communist block are testament to success of the free markets and Adam Smith's Invisible hand theory. In India Public Private Partnership (PPP) and privatization has reaped huge benefits.
Contratst the development of Indira Gandhi International Airport with CWG.Thw former a PPP project was completed 6 months before schedule and represents a world class airport which can soon be London,Dubai or New Yorks envy.Built in a record time of about 3 years,the T3 is an engineering marvel and hopes to break even by 2012.

Is it possible that Indian Sports taste the fruits of privatization and PPP?.Can we repeat IGA exeriment with Indian stadiums?The answer is an emphatic yes

Before we go further let us first consider various activities needed to be carried out to promote Indian sports and events like CWG
1)Infrastructure Development including stadiums and sports villages
2)Sportsmen and other HR development activities
3)Development of support infrastructure like roads,cities etc

Let us now analyze each of the above individually and see the possibility of opening up the sports markets and making it more efficient and progressive

The biggest problem holding back India from making it big in world sports is the lack of proper infrastructure.Hockey the national sport of India has died out because of lack of astroturf stadiums.We have only 15 astrosturf stadiums compared to 200 of Holland.Till date the onus of development and mantainance of sports stadiums,grounds has been on government.Government intervention often brings with its customries like corruption,sub standard designs and poor mantainace.A better alternative to this might be opening up private sectors for development of stadiums and indoor sports complexes.Places reserved for such infrastructure objects can be auctioned at lower prices.The stadium so developed can then be used by private players to earn money.In order to make the business model sustainable ,government can allow such stadiums to be leased out to sports league ,corporate functions,marriages etc for a fees determinned by the private players.Also the stadiums can offer integrated services like gymnasium,sports coaching for fees.The advertisment and marketing carried out by private players would promote the culture of sports.Soon we might have playing games as a status symbol or a way of life.As the business model develops business players will start scouting for the bottom of pyramid.In a parllel way we would becoome a sports hungry nation and start seeing beyond cricket.Soon local sports leagues would develop providing a sustainable business model for sports to flourish.As the user size increases more and more companies would enter the Indian sports equipment industry.The huge indian population size would mean economies of scale and cheapest sports equipment.
The oppurtunities for private sector are huge.Events like CWG can be bid by private companies on behalf of government,The GoI's role should be limited to providing outside support in form of development of city infrastructure and security,Also the GoI should choose to act as a mediator and negotiator with various businesses to ensure success of these events.For examle the GoI could have acted as a mediator between Delhi International Airport Ltd and company conducting CWG games to ensure timely development of infrastructure.However the government should avoid being directly involved in any infrastructure development as it would just lead to inefficiencies and filling coffers of Swiss Banks.At best GoI can provide indirect funding by underwriting sports bonds issued by such companies to facilitate and lower costs.Also red tap-ism should be decreased and companies should be allowed to buy/sell stadiums like any other business asset.These stadiums could be listed on stock exchanges too .This would promote better corporate governance and lowering costs.

The above suggestions might seem radical.However ,the success of IPL and other profit sorting events like WWF proves that sports is a very profitable business venture.The biggest football clubs in world are private ventures being bought and sold like companies.The governments role should always be that of a facilitator.It should be an enabling factor for entry of young and dynamic enterpreunral minds to enter in Indian sports industry.However if all this is not done CWG 2010 may soon be followed by a corrupt 2020 olympics

Friday, August 20, 2010

MEN's Rules

For the first time on political Sinner plagarism is taking place :)..a really nice video picked up frm FB :)

Tuesday, August 10, 2010

Abandoning Police Servces


Ever been fined for over speeding while your son was just about to miss his board exam while the ministers boy sped on the main road mistaking it for an A320 runway?Ever read the morning headline about a girl who just got raped last night could not even register a FIR in local police station?Ever read about the Gujarat riots and the role of local police in instigating communal violence? Ever had the odd police officer demanding a 500 ruppee note for verifying your credentials so you could get a passport?
The Indian Police ,an inheritance of Imperial Police of the erstwhile British Empire has become nothing more than licensed Mafia Raj.In fact if we consider the figures it would be the largest mafia force in the world.Its atrocities and activities would even make the Italian and Californian gangs look like peace forces.As per nationmaster India had 236,313 assaults last year making it the 5th most dangerous country to live in (even more dangerous than war torn Palestine).At the same time it had the largest police force in the 30 countries surveyed.India boasts of 1.7 m registered crimes ,making it 10th country in world affected by crimes (think what would have bent he situation had we included non registered crimes).So despite having one of the largest police forces in the world,we are still one of the most crime affected country.Add to this the fact that we are here despite having a relatively stable political and economic system.Compare this with a country like Switzerland which has no federal police structure and yet has much lower crime rates.
True,India is a different country with its own unique problems and comparing India and Switzerland is like comparing apples and oranges.Yet,the stats and data point out to such disparity that one is forced to question:Do we really need a police service?
The police force is supposed to assist a nation state in enforcing law and order,while at the same time ensuring basic tenets of democracy:equality and freedom are delivered to all citizens.Clearly the Indian Police has failed on all counts.The law and order situation is beyond the control of local police.We have to be dependent on the Army to control even the minor disturbances by the Maoists.The police is nothing more than a puppet in control of the "netas" at the centre when it comes to Godhras and Sikh Riots of he day.The crime rate in India is one of the highest in world and when any crime takes place ,the common man is rarely convinced that going to the police could be of any help.As per an estimate the Indian Police refuses to register more than 70% crime cases either to protect the powerful or to keep official crime rates low.Regular abuse of laws ranging from traffic to crime by rich and powerful is a rule rather than exception.Ex DGP Rathore ,Shibu Soren and Manu Sharma are just particles of dust covering the book of law abuses in India.
It seems quite logical then that since the Indian Police has failed on all counts,we can start replacing the Police by other alternatives.The advantages are two fold.One the state expends a huge amount of money on the police services.This money can then be diverted to other development schemes.Secondly,selective removal of police services would lead to lower crime rates and strengthening of the Indian state.So whats the alternative to a federal police.Here's what I feel can be a good alternative:

  • LAW AND ORDER :Strengthen CRPF.The CRPF should be given the wholesome responsibility of maintaining law and order and crushing any uprising.The CRPF battalions should be stationed at key locations and be capable of being transported to affected areas within half an hour.Advanced training and proper air and land support be provided them.
  • CRIME :At district level,the local communities can choose to outsource the police functions either to government or private security companies.Most of traffic policing can be automated with use of advanced technologies.Infact the ticket collection money would ensure negative bids for traffic policing project.
  • FAST TRACK COURTS:A government maintained Police HQ be established in district.The HQ would act as a fast track court against private police agencies.
  • MONITORING :A police monitoring agency be established to track performance of private police forces appointed by local communities.In case of any deviation this agency can over ride the local agencies
  • The private agencies be allowed to charge for providing security and theft prevention services.Also multiple policing agencies be present in same city/district to allow free market competition.The agencies be given limited power to arrest people and required to get approval of local courts within 24 hours of arrest.
  • The privatization be started in test phase and gradually be extended to whole of country.
The above might look outlandish and stupid to our mind which has long been trained to accept policing as a state function.However in Indian context ,the wider truth is that our feudalistic mindset makes misuse of power ,a rule rather than an exception.In this sense free market completion and Adam Smith can only help us in restoring civility in our society.The ordinary citizen has no hope from police.We are at rock bottom and privatizing in this revolutionary way can only make things better......