ABSTRACT

make water allocation work more like a market. All the more should one be sceptical o f the argument which says that corruption allows farmers to make government actions more predictable, and hence ‘corruption can increase the rate o f investment’ [Leff, 1970 (1964): 515, speaking about the desirable economic effects o f bribe payments by businessmen in Less Developed Countries].There are, however, some points which have to qualify the generally adverse effects noted above. It would certainly be mistaken to advocate merely that corruption payments should be eliminated and the crop zoning pattern strictly followed; for the zoning itself not uncommonly makes no ecological sense. Second, in a political environment where politicians are interested less in long-term development goals than in the disbursement o f short-term material benefits to those who support them, the consistent political commitment to irrigation investment, which in some Indian states accounts for over half the state’s development budget yet has a gestation period o f five to ten years or more, needs explaining. Perhaps the answer has something to do with the way in which irrigation investment does provide an abundant stream o f short-term material benefits able to be profited from by both politicians and state officials. Thirdly, the elimination o f officials’ corruption incomes would generate pressures for salary increases, which if financed out o f higher taxes would probably worsen income distribution.49 These points are not intended as a comprehensive qualification o f the adverse effects listed earlier, but only as an indication o f the complexity o f making an overall assessment o f the economic effects. IRRIGATION IN OTHER STATES Several bits o f evidence suggest that the practices described here are not confined to our particular state. A recent enquiry in another southern state indicates a similar mechanism o f sale o f irrigation posts there.50 Pant’s study o f the Kosi canal system in Bihar reports that contractors normally give about 30 per cent of the bill to Supervisors and above, and 10 per cent to office staff; about 10 to 20 per cent they keep as their own profit, leaving only 40 to 50 per cent to be spent on the actual works [1979: 127]. The same study reports, without elaboration, ‘Postings in places of choice or from non-work (design or investigations) to work units involve transactions o f huge amounts of money’ [1979: 128]. The Report o f the Santhanam Committee, set up by Government o f India to investigate ways o f preventing corruption, states: We were told by a large number o f witnesses that in all contracts o f construction, purchase, sales, and other regular business on behalf o f the Government, a regular percentage is paid by the parties to the transaction, and this is shared in agreed proportions among the various officials concerned. We were told that in the constructions o f the Public Works Department [of which the states’ Irrigation Departments are offshoots-RW], seven to eleven per cent was usually paid in this manner . . . . In all cases, failure to pay the percentage results invariably in difficulty and delay in getting the bills paid [India, Government of, Ministry o f Home Affairs, 1964: 10].