This is the first of a three-part article on legitimizing and regulating lobbying in India.
Lobbying is a dirty word in India. The mere mention of lobbying invokes thoughts of seedy manipulators, extra-constitutional interference, sting operations, and Swiss bank accounts. Media and media-folk have made a fortune, in more ways than one, raking up cases using influence to surreptitiously benefit their corporate benefactors.
However, let us park the “desi” twist on lobbying, and delve into the global understanding of the term. Lobbying is simply the practice of individuals or organizations trying to address and appraise government policies or decisions. Lobbyists are professionals that represent the interests of their clients to government officials, policy-makers, and other stakeholders.
In most parts of the world, lobbying and advocacy are not just legitimate, but essential elements for interest-groups to surface their agenda. The highly negative, contemptuous, association with the word, is somewhat unique to the Indian context. This isn’t surprising given the high-profile cases of lobbying where companies were accused of crimes and corruption.
The Bhopal gas disaster: In 1984, a gas leak from a Union Carbide plant in Bhopal, India, killed over 3,000 people. It was later revealed that the company had lobbied the then government to weaken safety regulations and reduce the company’s liability in case of an accident.
The 2G spectrum scam: In 2008, the government sold 2G spectrum licences to several companies at prices far below market value. Several top politicians, bureaucrats, and businesspeople were implicated in the scam, and some were arrested and charged.
The Commonwealth Games scam: The 2010 event was mired in allegations of corruption and financial irregularities, with several companies accused of lobbying government officials to secure contracts and favours.
The AgustaWestland chopper scam: In 2012, India signed a contract with AgustaWestland, a subsidiary of Italian defence company Finmeccanica, to purchase 12 helicopters for VIP transport. The contract was later cancelled after allegations of corruption and kickbacks emerged. It was alleged that AgustaWestland had lobbied Indian officials to secure the contract.
These examples are just a tip of the iceberg. Those that grew up in the licence raaj, heard stories of lobbying and undue influence pretty much on a daily basis. In 1985, Prime Minister Rajiv Gandhi, famously said that for every rupee targeted towards poverty alleviation only 15 paise reached the intended beneficiary. India had normalized leakages, thanks primarily to dark-corridor lobbyists.
That perhaps is the biggest reason why lobbying needs to come out into the light. When you outlaw lobbying, only outlaws will lobby. Behind-the-curtains lobbying means access-politics. Clandestine influence means cliques and rent-seekers. When you can’t speak to the king, the durbaan becomes all powerful.
In this series of OpEds, we will evaluate whether it is time to legitimize and regulate lobbying in India. The role of lobbying in modern democratic society is largely underappreciated, and perceptions are sadly unidimensional. There is reporting-bias where negative news sells more than positive news, and conditioning-bias where we search to reinforce our understanding though selective listening.
We, as humans, are psychologically attuned to diluting positive news. As examples, the National Cooperative Development Act 1978 was passed in the United States with the help of lobbying efforts from cooperative organizations. The law provided funding and technical assistance new cooperatives. The Rural Electrification Act was passed in 1936 with the help of lobbying efforts from electric companies, providing for the funding and technical assistance for energy companies, which helped to bring electricity to rural areas and promote economic growth. The Cooperative Housing and Condominium Act 1985 provided financial assistance and regulatory relief for housing associations, helping to preserve affordable housing in New York.
Sadly, there aren’t similar platforms in India where organizations can lobby with governments to co-create win-win upsides for society. With the opening of the Indian economy and the increasing participation of foreign businesses in the Indian market, perhaps it is incumbent upon the nation to (a) align with practices in the USA and EU, and (b) allow Indian corporates the same access that their global competitors enjoy.
Today lobbying is seen with archaic licence raaj lenses, and tainted with a broad brush. It is time now, that at the very least, we rationally debate the options.
(To be continued…)
Anuraag Saxena is a board advisor, public affairs expert, and OpEd columnist. He has been featured in Washington Post, BBC, Vice, The Diplomat, Financial Express, The Sunday Guardian, SPAN, etc.
He tweets at @anuraag_saxena