Anna Hazare’s campaign to stamp out corruption in India

In a landscape that has frothed over with ethnic and sectarian tensions, his tenacity has reaped huge dividends. The 74 year old ex-army truck driver’s agenda was to drive a constitutional change that would empower a Lokpal (an anti-corruption ombudsman) to investigate corruption, hold the government to account and knock-out cronyism.

These have not been small goals. In a country where rules and regulations have been flouted by government ministers and where many of them remain unimpeachable for their transgressions, Anna Hazare’s crusade has had far-reaching consequences not only for the legal framework in India but for many investors looking to expand their portfolios on the sub-continent.

Delays in obtaining the right documents to put together a deal, and the general sluggishness/evasiveness of beaurocrats in India has often resulted in frustration and disillusionment for many investors. In fact, many an in-house counsel attempting to work with the relevant channels to rubber stamp deals have thrown their hands up in complete despair!

If the government capitulates to Anna Hazare’s proposals (and for now Mr Manmohan Singh ostensibly has) this will have a powerful ripple effect on foreign investment and foreign dealings with India; ultimately making it a much more attractive market to transact with.

Fraud, bribery and corruption in general are endemic to any country that has not put in place a robust regulation and compliance system. And even then, legislation can be hard to enforce. Many countries in Asia are now struggling to play catch up with e.g. the US which implemented its FCPA (Foreign Corrupt Practices Act) more than three decades ago and the UK which has just updated its centennial laws in the form of the new UK Bribery Act.

Still, rallying a groundswell of support in order to effectively bend the will of the Indian government is no easy feat. Anna Hazare, a name that was relatively unknown before April of this year, has managed to not only bring a perennial problem to the global forefront but he has also blown empty rhetoric out of the water. (And all of this, using non-violent methods.)

He has managed to win the hearts and minds of both the populace of India as well as many among the Indian legal community, according to our recent conversations with leading lawyers in Bombay.

Though the impact of his protests and any legislative change(s) that may come about remains to be seen, there is no question that corruption pierces the veil of many commercial activities whether construction, pharmaceutical, manufacturing, energy or IT. What remains unclear at this stage is whether or not the installation of a watchdog to stamp out corruption will in reality, assist in heading off foreign investors’ fears.