Friday, September 09, 2005

Insider trading and politics

Jyoti Basus son is an industrialist. The son of a communist is an industrialist? Not a khadi wearing socialist? He is not alone. Many progenies of politicians have ended up as 'industrialists'. The language of money is the same everywhere. Politicians are businessmen looking to make money out of "serving the people". I am not sure which is better,politicians becoming businessmen or sons of politicians becoming businessmen or businessmen becoming politicians.

It is well known that apart from politicians, kith and kin of politicians and bureaucrats by virtue of the politicians and bureaucrats use 'insider information' of the next road to be laid, the next industrial cluster to be designed and the latest order to be floated to set up their own "businesses" which usually wind up after the last government order. Thus we have sons of politicians floating prawn fisheries (or is it hatcheries) or railway concrete sleepers or construction or even liaising agencies.

So, why isnt this treated like insider trading on the stock market??

Why are people who work within the same company using information to their unfair advantage different from kith and kin of politicians who use information to their advantage?

4 comments:

Nilu said...

For obvious reasons of personal fredom, it is not treated as inider trading.

And what is wrong with dad selling poverty to make a living and son selling something else?

Neelakantan said...

There is nothing wrong of course, but this is what I call as type B corruption, rather than direct corruption, where such a relationship gives an unfair advantage to somebody.

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Nitin Kochhar said...

Hi,

Please visit the link: http://www.fmcgmarketers.blogspot.com to get updated with news from FMCG world and be a part of this interesting and content rich blog.
Please send this mail to all your friends who are interested in FMCG.

My personal blog is: http://www.nitinkochhar.blogspot.com/