I had heard about Basu's position, but not read his paper
(though I guess I should have hunted it down and done so!).
A relative sends it to me for my comments. The paper is at: http://finmin.nic.in/WorkingPaper/Act_Giving_Bribe_Legal.pdf
Here are the observations I sent him.
1. The spirit of
his comments is closer to my proposals for abolishing black money in India than
anything else I have seen by Indians or others
2. The mechanism
he proposes has some merit
3. It does not
address what I might call "long-term collusive bribery in the context of a
network of relationships" but it could address what I call "individual
transactional bribery"
4. However, it is extremely difficult to *prove*
individual cases of bribery
5. In reality, the
distinction between what he calls "harassment bribes" and other kinds of bribes is
not easy to make; and other kinds of bribes are probably much more
economically and socially significant
6. It is possible for
a group of individuals to misuse the mechanism proposed in order to threaten
even honest officials in a legal system such as ours where testimony can be
included under proof
7. Most Indians are not literate; even literate
Indians are not necessarily intellectually sophisticated; and even those, who
are intellectually sophisticated, are often culturally disinclined to read and
to get into abstruse detail. So there
will be a widespread diffuse or general impression that "even bribery is legal
now", which will further erode the will of Indians to resist *all* sorts
of bribery. And when the first
convictions start appearing under such a new law, there will be even further
confusion in the country about what is legal....
My conclusion is that a moral renewal of our country is
the only thing that will reduce corruption, and not this kind of economic calculation
of where self-interest might or might not lead - which is why I focus so hard on the question of moral renewal.