Ensuring Transparency in the Private Sector

[Portions from my note to The Vice Chairman, Transparency International, India]

A series of events had led me to draw the following caricature (next page) of the state of affairs as related to the whistle blowers act. I had posted it in our community notice board on 22 Dec 2003. I was, therefore, surprised to find the monthly bulletin (Dec-2003) of the "Lok Sevak Sangh" in my mailbox last week. As you know, I have not yet applied for membership with the Transparency International (TI). This bulletin incorporates the monthly newsletter of Transparency International-India wherein the pertinent issue of the Whistle Blowers Act has been raised. What a coincidence! I will discuss the series of events that led to this caricature when time permits. My intention (in this caricature) is not to hurt the sentiments of entities that are sincerely working towards bringing in good governance. The idea is only to discourage entities from paying mere lip service to transparency by using various platforms.

As I had mentioned to you earlier, there is a more urgent need for these acts (Right to Information Act, Whistle Blowers Act) in the private sector than the Govt. sector. How do we go about making the Private sector more accountable? Since Orissa is undergoing reforms, entities like World Bank and DFID are setting their own terms and conditions while forwarding structural adjustment loans. Privatization initiatives are being taken up to satisfy some of these conditions. But do we have watchdog Institutions monitoring the NGOs and the private sector? The consumers will be better served if we have strong regulatory bodies (or mechanisms) efficiently and effectively regulating the private businesses (be it health, education or any other). We need effective mechanisms to support the voice of dissent in the private sector.

I am enclosing a note that I had written to DFID for your kind information (Click here). The same was also sent to the Chief Minister’s Office (Subj: Regulatory mechanism for the private sector). I have only received acknowledgement and thank you notes for my suggestions. But I am yet to know what developments have taken place to make these funding agencies and the NGOs more accountable to the public. It would be nice if TI-India looked into this aspect more closely. I also request the TI-headquarters to impress on World Bank and DFID to maintain transparency while disbursing loans through the private sector.