Conflict of interest

Globally, the corporate sector is known to woo bureaucrats and politicians with cash, gifts, paid holidays and post-retirement jobs to influence policy. In Japan 2,000 bureaucrats secured cushy post-retirement posts between 2007 and 2009. In the US retired ambassadors are offered jobs by firms from countries they have served at.

India’s 2G spectrum has exposed the politician-bureaucrat-businessman nexus. Waking up to the danger, the government is considering tougher ways to rein in bureaucrats. There is a proposal to increase the cooling-off period from one to three years, which means a bureaucrat will have to wait longer before accepting a post-retirement job.

Manipulation of policy is becoming common and is done in various subtle and not-so-subtle ways by even respected business houses as the Niira Radia tapes have revealed. Retired civil servants are hired by companies largely because of their contacts in the centres of power, their knowledge of complex government rules, procedures and loopholes, and experience of handling politicians. Besides, it is easy for them to get favours from ex-colleagues. Since there is still a huge gap between corporate and government salaries, some even take premature retirement to work in firms which they may or may not have patronised. It is imperative to find out whether their decisions have benefited firms they join. A former Telecom Secretary is in jail with A. Raja for favouring firms.
The situation is worse in states. In addition to corporate temptations, political links weigh on decisions. Those who do the bidding of politicians are rewarded and defiance is punished. It is not uncommon in Punjab for out-of-power politicians to threaten reprisal on coming to power. Bureaucrats, policemen and politicians work together to promote and protect one another’s interests. Political contacts help IAS officers get plum posts during and after service. The non-aligned are tossed around or moved out of the state. The Centre and states should consider ways to insulate bureaucrats from unhealthy and undesirable political and corporate influence.