The bureaucracy is not the perfect answer to enforcing contracts by being the third party.
In an interesting deviation from the traditional approach on economic growth, the Survey looks at how honest societies promote development and economic efficiency, as they tend to have a “natural advantage” over others in being the most preferred destination for business and trade.
Predictably, a nation’s success depends on its resources, human capital and economic policies, both fiscal and monetary, it says. It then goes on to bring in an honest society as a key attribute in this process , by adding that such success also depends on “ the cultural and social norms that permeate society”.
The bureaucracy, it says, is not the perfect answer to enforcing contracts by being the third party . “if we try to do it that way, as we have on occasion in India, the result will be a cumbersome bureaucracy, that is unable to deliver.”
The Survey thus offers a simple start to a rather complex developmental problem. It admits, the “science of how these economic-friendly social qualities are acquired is not yet fully understood”. But, says the experience shows that “cleaner” and “aesthetically better maintained” buildings could contribute to less corrupt behaviour.
For instance, says the Survey, New York City’s notoriously high crime rate was controlled, among other things, by cleaning up the city and removing graffiti from the walls. One also sees this in the metro rail system in Delhi. “One sees casual evidence of this in the behaviour of Delhiites using the metro. It has been widely noted that people behave better when they travel on Delhi’s well-maintained metro.”
Adding: “We have a mental inclination not to defile a good ambience through acts of corruption.” Hence, long term development of India will be achieved through these “non-economic foundations of economic prosperity”.
You’ve reached your limit of {{free_limit}} free articles this month.
Subscribe now for unlimited access.
Already subscribed? Log in
Subscribe to read the full story →
Smart Quarterly
₹900
3 Months
₹300/Month
Smart Essential
₹2,700
1 Year
₹225/Month
Super Saver
₹3,900
2 Years
₹162/Month
Renews automatically, cancel anytime
Here’s what’s included in our digital subscription plans
Exclusive premium stories online
Over 30 premium stories daily, handpicked by our editors


Complimentary Access to The New York Times
News, Games, Cooking, Audio, Wirecutter & The Athletic
Business Standard Epaper
Digital replica of our daily newspaper — with options to read, save, and share


Curated Newsletters
Insights on markets, finance, politics, tech, and more delivered to your inbox
Market Analysis & Investment Insights
In-depth market analysis & insights with access to The Smart Investor


Archives
Repository of articles and publications dating back to 1997
Ad-free Reading
Uninterrupted reading experience with no advertisements


Seamless Access Across All Devices
Access Business Standard across devices — mobile, tablet, or PC, via web or app
