As the field of policymaking evolves and communication of information grows, there is an urgent need to regulate lobbying in the form of creating a law or bill regarding the subject.
Lobbying is a practice which is widely seen in negative light and is often equated to bribery in our country. Various controversies have surrounded the subject which has ignited the confusion regarding the constitution of lobbying and debate on whether lobbying should be formalized as a legal activity. The answer lies in knowing about what lobbying is in reality, how it is practised,it’s pros and cons and should there be a law or regulation made regarding lobbying.
What is lobbying and its effect on policymaking?
Lobbying is defined as the act of lawfully attempting to influence the policies and decisions of government officials, mostly legislators, members of regulatory agencies and judiciary. It is usually committed by individuals,corporations,private interest groups to turn the vote or tide of policies in their favor.
It roots back to the gathering of Members of Parliament and peers in hallways(“lobbies”) of United Kingdom Houses of Parliament before and after parliamentary debates where public members could meet their representatives to communicate their interests and information which could prove vital for the policymakers.
Lobbying can impact political and policy systems in both positive and negative manner. Positive effects: access to government legislators, bringing in voices of minorities and voiceless, force legislative change for the good of people and save tax-payers money. Negative effects: manipulation of political process, flawed political decisions, biased or misrepresentation of data and overspending of money in self-vested campaigns.
Lobbying in India:
Corporate lobbying in India has been around for a long period of time. It all begun in 1800s when East India Company, a joint stock company, chartered in 1600, conquered India and it’s looting of India unleashed a new form of corporate violence which was done through lobbying by the British state who influenced the policies, rules formation upon the Governor-Generals through power and pressure from Leadenhall (Parliament and Queen).The charter which gave power to Indian merchants who generated income from spices, tea etc., armed forces, politicians, royals working with the company were major factors in the rise of corporate lobby and conquest of India.
Post-Independence, organizations like FICCI, ASSOCHAM and CII have played a huge role in assisting their members through influencing decisions and policy members. The discussions don’t take place in secretive places but in government offices where professionals try to persuade the leaders to adopt a policy suggested by them and how it positively affects a larger group of people which helps the government get an idea about public sentiment through lobbyists.
Lobbying gained traction in 1990 when the Indian lobby focused on countering Pakistani lobby groups which had a great presence during the Cold War period. The first test for lobby came in defending India’s nuclear test in 1998 wherein India declared itself as a nuclear power in defiance of international norms. Another instance was seen during 1999 Kargil War where it exposed Pakistan’s military adventurism and created a more objective view of the Kashmir issue. The real clout of lobby was confirmed during the U.S.-India Civilian Nuclear Agreement Bill in 2008 in which lobby emphasized the positive aspects of the civilian atomic agreement, highlighting India’s credentials as a democracy, the value of its market economically and its growing strategic importance. This helped in growing support for India in U.S. Congress. Some successful examples of Indian lobbying include Right to Information Act(advocated for administrative reforms by MKSS and NCPRI), formation of political caucuses (strengthen India-American relations) and Lokpal Bill (removing corruption movement led by Anna Hazare) which showed the lobbying influenced the legislators to bring reforms for betterment of the citizens.
The negative image:
One side of the coin demonstrates lobbying as an advocate for reforms while other side shows it as form of corruption. Given that there is legal and policy silence in India, lobbying is carried in behind-the scenes manner with lack of transparency and agenda of self-vested interests which makes up for the perception of it being an evil practice prevalent in policy-making system.
A number of scandals have rocked the country and revealed the perils of lobbying. Some of which are as followed:
Nira Radia tapes Controversy: Nira Radia, a professional corporate lobbyist and close friend of politician A.Raja lobbied to get him appointed as the telecom minister in the UPA- II government (2009-2014). The phone records were tapped by Income Tax department for 300 days (2008-2009) in a follow up of a prospective case of money laundering, tax evasion etc. In 2010, The audio telephonic tapes were exposed and leaked by OPEN magazine. This revealed the nexus between senior journalists, politicians and corporations and the role played by lobbyists in influencing crucial policy decisions (spectrum allocation in this case) and cabinet- level political appointments to turn the tide in their own favor.
Walmart Controversy: In 2013, Walmart’s report to US Congress (part of mandatory disclosure of lobbying activities) revealed that it has spent $25 million on lobbying to secure legal and regulatory approvals and enhance market access for investment in India. These spurred allegations of bribery and caused furor in the public domain. The incident exposed the reality of power and money meeting up together and how the line between bribery and lobbying gets blurred in the process of gaining profits for self-interest.
The Satyam Scandal: Satyam Computer Services, an outsourcing company had falsified records, inflated share prices and manipulated balance sheet by illegal means. The money earned by investors was swindled by board members with least regard to morality or legal system. The scam was uncovered when Hyderabad property market collapsed in 2008 and brought to light when the chairman of company, Ramalinga Raju confessed the falsification of accounts done by the firm. The scam bought in the ties between politicians, lobbyists and business tycoons out in open and emphasized the role played by lobbyists to influence policies in the company’s favor which kept the fraudulent firm going for many years.
These scandals reveal how self-vested interest, manipulation of crucial decisions and profit greed impact the policy-making system and citizens of the country negatively and stress upon the need to regulate lobbying in the form of a law or a bill so that policies can be made and implemented for the betterment of the citizens of a nation.
Regulating Lobbying in India:
Laws and regulations serve as a tool to enhance transparency and encourage ethical practices in all domains. Only a few countries like USA,Germany,Taiwan,Australia.France have regulated it as a legal practice which gives legitimate right to citizens to voice out their interests and opinions regarding several subjects and issues.
One instance could be seen In the USA wherein Lobbying Disclosure Act (LDA),1995 requires lobbyists to disclose information regarding the issue they are working on, stakeholders working with, and amount spent on lobby campaigns.
Another example could be seen in France wherein the French Transparency Law for Public Life Act (2013) amended subsequently by the law on Transparency Anti-Corruption and Modernization of Economic Life (Sapin II law) in 2016 was passed which required the lobbyists to disclose all sort of information and HATVP organization is responsible for enforcing legal obligations flowing from Acts and ensuring that legal means are used to conduct the practice of lobbying.
In India, there is no law or legal framework or guideline which either recognizes or legalizes it in a statutory or non-statutory form. The only time an effort has been made in this direction was introduction of private member bill named the Disclosure of Lobbying Activities Bill by Kalikesh Narayan Singh Deo, a former Member of Parliament from Biju Janata Dal party in 2013 which defined the term as “an act of communication with and payment to a public servant with the aim of influencing” legislation or securing a government contract and required lobbyists to register with an authority and declare certain information. The bill lapsed and despite its reintroduction in 2015, there has been no progress or debate in this matter. This indicates that the initiatives to regulate lobbying couldn’t secure policy makers’ attention and is not on the priority list of “setting up the agenda” as of now.
Creating a legal framework in form of a bill or law can serve as a stimulus towards bringing an optimistic change in policy-making process, make industry public and transparent (helps holding people accountable), use of disclosures data in research purposes, enable healthy interactions between policy makers, public officials and lobby groups, discourage unregulated and opaque practices and curb corruption and favoritism which strengthens policy-making process and public administration.
Conclusion:
To sum up, lobbying is legal right of citizens to voice in their opinions and know workings of policymakers and legislators.However,it’s use for private gains and self-interest can diminish democratic values and impact policy system negatively.Henceforth,it is important to regulate the practice through creation of a law or bill which aids in legalizing the practice, bring structural reforms in public policy and strengthen the policy-making system.