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From one Kejriwal to another Kejriwal

My dear Sir Arvind Kejriwal,

Hope you are doing well.

My name is Alok Kejriwal, and I am a humble digital entrepreneur based out of Mumbai.

Sir, I have been struggling for the past 13 years to make a mark for myself in my industry and while I have certainly not achieved the size and scale of success and fame that you have, I do enjoy my own small universe of friends and supporters.

This mail is not to obviously compare my popularity vs yours' (silly comparison) BUT to ASK you a question about your philosophy of creating such amazing and effective agitation against CORRUPTION.

My Question - Instead of fighting tooth and nail (and losing yesterday's battle) against corruption, have you Dear Sir considered fighting and agitating for INCREASED GDP??

Sir, allow me to explain...

In my Company, let's assume I do a business turnover of Rs 100.00

Also let's assume that my profit margin is 10%

Therefore, I SPEND Rs 90.00 in generating my business turnover.

Obviously this expenditure of Rs 90 is towards salaries, cost of buying services, electricity, rent etc paid to OTHER Indian companies and individuals.

Since you are a very smart man, you will quickly understand that IF a man starts a business of Rs 100 in India, then this is what happens when the people who receive my Rs 90.00 further retain 10% margin and SPEND the rest in making THEIR business run:

TurnoverProfitExpenditure
100.010.00%90
90.010.00%81
81.010.00%72.9
72.910.00%65.6
65.610.00%59
59.010.00%53.1
53.110.00%47.8
47.810.00%43
43.010.00%38.7
38.710.00%34.9
34.910.00%31.4
31.410.00%28.2
28.210.00%25.4
25.410.00%22.9
22.910.00%20.6
20.610.00%18.5
18.510.00%16.7
16.710.00%15
15.010.00%13.5
13.510.00%12.2
12.210.00%10.9
10.910.00%9.8
9.810.00%8.9
8.910.00%8
8.010.00%7.2
7.210.00%6.5
6.510.00%5.8
5.810.00%5.2
5.210.00%4.7
4.710.00%4.2
4.210.00%3.8
3.810.00%3.4
3.410.00%3.1
3.110.00%2.8
TOTAL
875

Sir, if you notice, the TRICKLE DOWN EFFECT of starting a business with Rs 100.00 turnover results in Rs 875.00 turnover generated by other people down the value chain as they run their business/service.

NOW, coming to a topic closer to you:

LET'S ASSUME THAT THE PERCENTAGE of BRIBE IN EACH BUSINESS TRANSACTION IS 10%

So, of the first Rs 90 I spend, I will have spent Rs 9 in bribes.

AND

In the Rs 875.00 turnover achieved above, the other players in the VALUE chain will also have spent 10% of 875.00 or Rs 87.50 AS BRIBES.

In short, Rs 100.00 turnover GENERATES Rs 875 more turnover, with Rs 87.50 being spent as bribes.

MY QUESTION TO YOU IS - what is MORE IMPORTANT?

Encouraging me to START A BUSINESS of Rs 100.00 that GENERATES further business of Rs 875.00 OR SAVING Rs 9.00 ????

Bear with me for one more minute:

Let's ask ourselves, what stops people from starting businesses (that grows GDP) in India in the first place??

It's the lack of EDUCATION.

So, let's take the case of my Driver.

His son is studying in an English medium school and is quite a bright guy.

I hope that one day he will NOT become another driver BUT someone, like say, an Auto Parts Dealer with a SHOP that sells parts and runs a BUSINESS!

NOW COMES THE QUESTION:

If he HAS TO PAY A SMALL BRIBE TO START HIS SHOP - ISN'T THAT OK - CONSIDERING THAT HE WILL CREATE 8.75 TIMES MORE BUSINESS FOR THE COUNTRY EACH YEAR???

BRIBES ARE PAID ONCE. BUSINESSES RUN FOR EVER!

If my driver asks me for a LOAN to help start his son's business - should I NOT GIVE IT - KNOWING that Rs 9.00 WILL GO IN BRIBES, BUT EACH year he will generate a 8.75 MULTIPLE effect for the country??

Sir, I am businessman, and just using elementary math, note THAT RS 875.00 is BIGGER than Rs 87.50!!

My plea with you is:

Agitate to get more people to START businesses.

TO INCREASE THE GDP OF INDIA

TO CREATE ENTERPRISES

TO CREATE AN ARMY OF ENTREPRENEURS

TO NOT JAIL BHARO

BUT
BANK BHARO WITH ENTREPRENEURS!!!

I have tears in my eyes as I write this Sir.

Simply because the biggest and most powerful agitators ever born in this great country... which would be you and Shri Annaji... seem to have MISSED THE REALLY, REALLY, BIG PICTURE.

A troubled,

Alok Kejriwal

alok@rodinhood.com

Ps - special thanks to Asha for her speed editing of this one!

Alok blogs at http://rodinhood.com

© 2012 afaqs!
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