On Manmohan… and Niskanen
Published by sauvik February 5th, 2006 in Economics, GovernancePrime minister Manmohan has hinted at a new pay commission that will significantly raise the salaries of our ‘misproductive’ babus. Which rational Maharaja would jeopardize the health of his treasury by recruiting millions and paying them wages higher than market rates?
Those who worry about the fiscal problems that will surely follow may note that William Niskanen (who theorized that bureaucrats are ‘budget-maximisers’), president of Cato Institute, will be in Delhi this week, as a guest of Liberty Institute. Delhiites should make it a point to hear him.
Niskanen’s theory assumes importance in India, where the fat-cats of babudom have played havoc with the budget deficit.
I think the premise of that concept was that government officials take bribes to make up for a perceived loss in salary. Am I right? Or are you saying it’s just pure and simple greed? From what I hear, they receive more perks than money. And money is what the government babus see the private sector workers earning - a disposable income. But this blurb here insinuates that they get paid higher than market rates. I didn’t know that.
But clearly, raising their salaries isn’t going to combat corruption.