“Government regulation was believed to be at the root of corruption and liberalisation was predicted to reduce corruption by removing regulations. After so many years, the opposite has happened. It is clear regulation is not the problem, but regulatory misconduct,” said N. Ram, Chairman, Kasturi & Sons Limited, at the discussion of his book, Why Scams are Here to Stay , in Chennai on Tuesday evening.
Speaking about the book, after an introduction by historian S. Muthiah during a discussion organised by Madras Book Club and Aleph Book Company, Mr. Ram said: “It underlines the intractability of corruption under the prevailing circumstances. Without making deep and radical changes to the political economy, it will not be possible to prevent and eliminate the endemic and deep-seated disorder.”
Furthermore, Mr. Ram said, corruption should not be reduced to moral or pathological reasons.
Popular movements
Speaking about the limitations of popular movements against corruption, he said, “The sentiments behind JP and Anna movements were right but they were unable to meet the high objectives they set for themselves.”
In conversation with M.K. Narayanan, former National Security Adviser, who asked him about the merits of demonetisation, Mr. Ram said, “It has not really dealt a significant blow to the black economy. The I-T dept. has been empowered but it is understaffed. Virtually 100 % of cash has come in. However, while there is no clear evidence, political outcomes suggest that people think that big black money holders, those who fund terror and counterfeiters were hit. Demonetisation has diverted attention from what really needs to be done,” he said.
Responding to Mr. Narayanan's question about why corporate scams are brushed under the carpet, Mr. Ram said, “There is nothing called political corruption as a standalone category. Corporate and non-corporate business world work with political parties. Our laws have to be reformed.”
