Monday, February 27, 2012

Where speed money is legal/regularized-examples from India

When Kaushik Basu(then Economic Advisor to the Prime Minister) suggested that small bribes could be legalized, those remarks caught a lot of flak and invited adverse editorial comments. But as Ms Sreemati Remnath, a guest lecturer for the Inter Cultural Communication Course(ICC) pointed out, there are quite a few instances where speed money is actually regularized in India. When I refer to 'speed money', I define it as paying a fee to have your service delivered in a manner other than first come first serve.  The first two examples were suggested by her, the remaining examples and analysis are mine. Purists may quibble that changing the time dimension alone makes the service different for which a different fee is appropriate. While that argument is logical, not everyone sees it as fair/equitable since we do feel in some places that money has no right to displace FIFO in the merit hierarchy. 
  1. Tatkal for railway tickets:-Instead of bribing the clerk/TTE to bump up the person in the waiting list(it still happens but much more difficult), tatkal fee is a legal way to charge people in a hurry, akin to the fare buckets in airlines/buses/cinema tickets and other perishable inventory cases
  2. Special darshans in temples:-Though all devotees are supposed to be equal in the eyes of most religions, many Indian temples have the practice of special darshan(paid for)/VIP darshan(where the custodian may get non monetary benefits/donations) for those in a hurry
  3. Fee for publishing patent application earlier:- For those in a hurry to get their patent application published and scrutinized faster, the Indian Patent Office charges an extra fee for that.
  4. Officially Higher fee for management/NRI quota students in colleges:-Management Quota students find it harder to get loans(not having got it on academic merit) while NRI students pay more fees. Often, both do not get scholarships/subsidies/soft loans or grants, maybe on the presumption that they got in other than the regular way. This is not really speed money, but can be analogized to that.
I'm sure the reader can think of many more such examples. This post is not to critique any of the above time honored practices, which are often 'international practices' too,but just to connect the dots.  

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