Wednesday, May 28, 2008

Common Mans Index of Corruption

Hi All,
trying to figure out a way of accessing how much my quality of life is affected by corruption, here is a measure I came up with.

I invite comments on this and other approaches on the same.

Index of corruption: Or how much you are affected by it in your daily life.

Lets say you buy a house for (x) 20 lakh rupees.
In the transaction, you pay a bribe (c) of Rs, 30,000 or 1.5% of the value.

Then you do the interiors of your house for (y) 3.0 lakh rupees.

Broadly speaking, your lifestyle or standard of living is determined by the value of house and the interiors you have in it.

Index of corruption: c/ y
OR change it into percent by multiplying by 100

In this case 30000/300,000 = 0.1
or 10%

The reasoning is that the money you spent as bribe could have been used to increase the interiors of your house.
Similar corruption is experienced by all the shops in your neighborhood. They pass on the cost to the consumer by increasing their charges.

This should give you a reasonable idea that how much your life can be improved by eliminating corruption and if you find the value enough, then you can do something about it.

I invite comments.

my 2 cents
Abhinav

2 comments:

Anonymous said...

some comments i received by mail:
By Amit Saxena:
I guess this is coming in context of speech by CK Prahlad.

http://economictime s.indiatimes. com/rssarticlesh ow/msid-3022958, prtpage-1. cms

Numbers are shocking, and I am sure there is lot of value lost due to corruption.

But beyond shocking number, question is how to make a compelling proposition to public at large, bureucrates and politicos for retrieving that value?

Can there be a business opportunity here? It is $23 Trillion (with a T) market out there J as per CK Prahlad.

Amit

Anonymous said...

By Ashish Thakur
A knee-jerk thought here: Enabling e-Governance would be the logical and
obvious way to tap into this market. An example could be made of what
Mr. C.B. Naidu did for the state of AP.

While this so called eGovernance "biz opportunity" is not going to be
the big ticket itself, eGovernance will play the role of an "enabler".

This creates a catch-22 situation: Does the entrepreneur wait someone
else to be the "enabler" and then himself go for the moolah? Or be the
"enabler" and possibly miss the "big ticket" bus coz the models are
going to be drastically different...

What do others think of this? Can we have our cake and eat it too?

Ashish