India: bribery

In many countries, starting a business requires more than a good idea. You also need an unmarked envelope full of cash - a bribe. You want that business license without the hassles? No problem.
NPR's David Kestenbaum from our Planet Money team recently visited India and he brought back the story of a young businessman and his envelope of cash.
DAVID KESTENBAUM: Gagan Singh was not actually all that excited about starting a business in the first place. He was 22 years old, wanted to be an artist, but his family said, Gagan, artist? That is not a good career choice. You should be a very successful businessman. So Gagan took some business classes, but they didn't prepare him for what was to come.
Mr. GAGAN SINGH: What happens on the street has no link with the studies. You can just burn all the books.
(Soundbite of laughter)
KESTENBAUM: Gagan started up a tiny business delivering telephone and Internet service. He hired four people. They needed to string up some wires and get licenses from the government but getting those things done without hassles required a bribe.
Mr. SINGH: The very first time, I still remember the guy was named Josan(ph). And I walked into his office, he very cool, ultra cool about it. He calls for tea. I'm sitting, he's just chatting, how am I, how is everything? And I'm, like, you bastard, I know what you want.
KESTENBAUM: So, Gagan chitchats, then takes out a folder with 10,000 rupees tucked inside, about $200, passes it to the government official who slips it into his briefcase.
Mr. SINGH: And he's, like, yeah, okay, where do I need to sign and, please, have your tea. Please have some cookies.
KESTENBAUM: That was not the end, though, Gagan says he had to bribe people almost every step of the way.
Mr. SINGH: I think about 10 to 15 people.
KESTENBAUM: You had to pay 10 to 15 people?
Mr. SINGH: Yes. Every person, starting from the line man to the junior engineer to the senior engineer, to their bosses.
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