That corruption is one of the biggest problems India faces is a banal truism. But where we go wrong in thinking about it is that we treat it like a disease, when it is really a symptom. Corruption arises from power. When people have power over our lives, they will misuse it: that is inherent in human nature. When you need 165 licenses to open a hotel in India, including "a special licence for the vegetable weighing scale in the kitchen and one for each of the bathroom scales put in guest rooms", there is a recipe for corruption right there. When every government servant you encounter while doing some routine work, from a driver to a peon, can delay you or derail you, corruption is inevitable.
Corruption is inevitable in India because the government has too much power. If a hotelier did not need 165 licenses -- and there is no reason why he should need any -- that would be 165 bribes less to pay. (I'm assuming one bribe per license, which is honestly quite optimistic.) If our mai-baap sarkars did not have control over so many elements of our lives, there would be less scope for chai-paani. In practically every area of our lives, there is government interference or oversight, either overt or covert. And, to repeat that old cliche one more time because it is both pithy and true, power corrupts. That's just human nature.
So what is the solution to corruption then? Since the problem lies with power, you need to tackle that first. You need to, first of all, question the many ways in which the government controls our lives. Completely dismantling the license-and-inspector raj is one way to do. Scrapping every ministry that has no reason to exist, at both the central and state level, would be another. (We'd be left with just three or four of them.) Governments should exist to implement law and order, to protect our rights, and to provide basic services -- nothing else. The more we move towards this ideal, the closer we come to rooting out corruption.
Obviously these specific goals are high-hanging fruit. Those in power will never willingly give up any piece of it. But an equal part of the problem is our default attitude that our government exists to rule us and not serve us. This must change. Equally, we seem to believe that the solution to bad government is more government. This is exactly the opposite of the truth, and broadly the mistake that Anna Hazare is making.
The Lokpal Bill does not tackle any of the root causes of corruption. Instead, as Pratap Bhanu Mehta puts it in his wonderful critique, the bill amounts to "an unparalleled concentration of power in one institution that will literally be able to summon any institution and command any kind of police, judicial and investigative power." In other words, in a situation where the problem is power, we create an entity that has even more power and, what is more, has appointed officials instead of elected ones. As Shuddhabrata Sengupta writes, this is not "the deepening, but ... the profound erosion of democracy."
Amit Varma in Yahoo News. More Here