Corruption in everything: renting your own baby

by on August 30, 2005 at 9:41 am in Economics | Permalink

From Bangalore:

Just as the painful ordeal of childbirth finally ended and Nesam
Velankanni waited for a nurse to lay her squalling newborn on her
chest, the maternity hospital’s ritual of extortion began.

Before she even glimpsed her baby, she said, a nurse whisked the infant
away and an attendant demanded a bribe. If you want to see your child,
families are told, the price is $12 for a boy and $7 for a girl, a lot
of money for slum dwellers scraping by on a dollar a day. The practice
is common here in the city, surveys confirm.

A 1999 survey by the center found that 9 of 10 families whose relatives
gave birth in the hospitals reported paying a bribe, usually to see the
baby. The average amount paid has since dropped to $7 from about $16.
But 8 in 10 women still reported paying bribes in 2003 – to have their
baby delivered, to see the child after birth, to get their newborn
immunized or to obtain medicines that were supposed to be free.

Here is the story, which also contains a good general discussion of corruption.  This is yet another indication why the Indian economy is less of a threat than outsourcing critics might think.  Bangalore is arguably one of the most advanced and modern corners of India.

John August 30, 2005 at 9:54 am

Serious question: why is an informal charge called corruption, while a formal charge is simply a fee?

Xmas August 30, 2005 at 10:05 am

John,

The same reason that charging more for high demand items during times of crisis is called “price gouging” while at any other time it would be called “market forces.”

But seriously, corruption is when individuals demand money to perform a job for which they’ve already been paid. Bureaucrats are supposed to handle the paperwork you give them, nurses and doctors are supposed to care for your newborn, and police are only supposed to arrest you when you commit a crime. Demanding money to do (or not do, in the case of police) their job is corruption.

ElamBend August 30, 2005 at 12:03 pm

I wonder how corruption in India compares with corruption in China. My general feeling is that in Indian the corruption comes often in this form of ‘extra’ fees, while in China the corruption is more in the form of skimming government money that has come down from above and also awarding contracts to prefered companies. However, this is completely non-scientific.

What I’m really curious about is how both countries’ culture of extortion/corruption will affect their [presumed] rise in economic and military power.

Duncan Brown August 30, 2005 at 12:54 pm

Migrants everywhere tend to be the more enterprising among us.

One advantage of cities over the country-side in India is greater educational opportunities.

Migrants to the city also can hope to escape the rigid caste/class structure in India. The lure of the software industry is what every auto-rickshaw driver that I spoke to mentioned.

DB

Kevin Murphy August 30, 2005 at 3:29 pm

Why is corruption more rampant the larger the city? Because you can get away with it. Same reason drivers are more rude in large American cities than in small cities and towns. When you are effectively anonymous it is easier to demand bribes etc. In a small place everyone knows when you are demanding bribes and you are socially shunned. The negative response from the bad behavior is more direct and the effects are more direct. In the big city you can piss off a lot of people but still have a large social circle that is either unaware that you are bribing people or do not really care because it does not directly affect them. Without the free press and widespread literacy, there is nothing to stop the spread of corruption in the big city. Look at America over the past 100 years. Big cities with a barely literate population had high corruption rates. Big cities with high literacy and a free press have lower corruption rates.

Factory August 31, 2005 at 5:11 am

“I wonder how corruption in India compares with corruption in China.”

The transparency.org puts china at about 3.4 on their index (higher==less corrupt), and India at 2.8.

“That deeper problem is generally that the state is doing something it should not be doing, sticking its nose somewhere it should not be sticking it.”

In the transparency.org index, ‘big government’ countries do not correlate well with corruption in the upper end. AFAIK, all the lower end countries are prolly ‘big government’ countries.

Sudha Shenoy August 31, 2005 at 12:19 pm

1. What can one expect from the ‘public’ sector?
2. Growth comes from the ‘private’ sector — which has learnt to survive with these parasites. What sort of skills etc are developed in such an environment?

Constant August 31, 2005 at 2:20 pm

Oupliette: I wasn’t able to gather enough from the article to formulate an answer. That’s why I picked an example of corruption which was clearer to me. One thing that seems apparent to me is that the outrage that people are feeling seems primarily to be directed against the *precise* method of gaining payment, i.e., withholding the baby. I have in the past heard of cases where people pay doctors under the table to get preferential treatment, but I don’t recall any outrage about that, presumably because the payment was up front rather than at point of baby.

I have myself paid people up front for goods and services. I did this today in a cafeteria when I bought an item of food. What makes that payment not a bribe? Well, it is understood that I need to pay. There is no Official Government Decree saying that I don’t have to pay. Well, suppose that one fine day the government decrees that I don’t have to pay. Suppose the cafeteria cashier ignores this decree and demands payment. Is this now a bribe?

I have also paid at the tail end for goods and services. At restaurants I pay at the end of the meal, not at the beginning.

I am not trying to indirectly answer your question about the case in the article because I don’t have the details. I only want to explain why I’m not automatically outraged discovering that, gasp, somewhere in the world patients need to pay medical staff in exchange for goods and services.

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