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Novel Approaches to Local Government Corruption in India and China

India and China have not only been the home of new varieties of entrepreneurialism. In these countries, creative individuals have also come up with novel approaches to dealing with local government corruption.

An expatriate Indian physics professor in the U.S. came up with the brilliant idea of a Zero-Rupee Note to hand out in situations where local officials expect or ask for bribes.

According to the Zero Currency website, "The zero currency note is a tool to help you achive the goal of zero corruption. The note is a way for any human being to say NO to corruption without the fear of facing an encounter with persons in authority. Next time someone asks you for a bribe, just take your zero currency note and hand it to them. This will let the other person know that you refuse to give or take any money in order to perform services required by law or to give or take money to do something illegal."

According to an article in last week's Economist, Prof. Anand "thinks the notes work because corrupt officials so rarely encounter resistance that they get scared when they do. And ordinary people are more willing to protest, since the notes have an organisation behind them and they do not feel on their own."

The Zero Currency program, which includes zero notes in all major currencies, including the dollar, is part of 5th Pillar, which also focuses on local government activities via use of the Right to Information Act followed by the organization's People's Inspection & Audit of such things as local road projects.

According to another Economist article, a truly novel approach has led to the closing of "capital representative offices" of local governments in Beijing, which have been used to lavishly entertain local officials in the capital as well as lobby the central government. These offices had within them good restaurants and fancy guesthouses. But since local governments have little actual business in Beijing, "any favour the lower-level offices might try to curry is likely to be illicit."

After the execution of his boss in 2001, a former secretary to a deputy mayor in a northeastern Chinese city wrote a series of novels collectively called Beijing Office Director, which brought attention to the capital representative offices and their illicit activities. This led to an investigation of the offices by the Communist Party's anti-corruption agency.

Robert Wechsler
Director of Research-Retired, City Ethics

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