Their side of the bargain?

Reader question:

Please explain this passage and, in particular, “their side of the bargain” (Business in India: The price of graft, The Economist, March 24, 2011):

Even so, India is home to an unusually pernicious form of corruption, argues Jahangir Aziz of JPMorgan. Elsewhere graft may be a fairly efficient way to do business: investors who pay bribes in China may at least be confident of what they will get in return. In India, however, too many crooked officials demand cash but fail to deliver their side of the bargain. Uncertainty, not just the cost of the “graft tax”, may be the biggest deterrent of all.

My comments:

I don’t know if this is a greater insult/compliment to Indian businesses or Chinese, but the important question concerning us here is whether one “delivers their side of the bargain”.

But first, bargain.

Which essentially means a cheap deal, something you get for less than its usual value.

You go to the market at Xiushui in Beijing, for example, to buy a wrist watch. One vendor who sells imported watches catches your eye. Counterfeit watches they are as a matter of fact, and you know it. You make an initial inquiry. The vendor says: “Three hundred kuai.”

You go away.

The vendor calls you back. “Name your price.”

You turn back and ask again: “How much is this you say?”

The vendor says: “Three hundred. If you’re serious to buy, you can have it for 200.”

You say: “50.”

The vendor says “Deal!”

You pay the 50, get the watch and walk away, feeling cheated, of course, knowing that if you were a better bargainer, you could have nailed it for even less. But, again, what’s important concerning us here is that both you and the vendor have upheld your side of the bargain.

You have upheld your side of the bargain, I mean, and the vendor has upheld his side.

And that means you each did what you said you would do to consummate the deal – to complete the deal, but I thought “consummate” would make it sound glorious.

Anyways, it takes two sides to bargain, as there are two sides to every coin. A bargain, if struck, is an agreement, in this case, between you and the vendor. When you hand the 50-kuai banknote to the vendor, you are honoring your side of the bargain. And when the vendor hands you the watch in return, he is honoring his side of the bargain.

If, on the other hand, you change your mind after hearing “Deal” from the vendor and try to walk away from it (in order to seek an even better bargain later), you will not be honoring your side of the bargain.

In other words, you’re not keeping your word, your promise to take it for 50.

Or if the vendor, after receiving the money from you, gives you a damaged watch instead, he’s not holding his side of the bargain.

And when any of these last two scenarios happen, of course, you and the vendor are in for more trouble.

In short, it takes two people to make an agreement and it takes two people to honor an agreement. If either one party fails to keep his word, hassle ensues.

Or as they say, it takes two to tangle.

Tango, but you know what I mean.

Anyways, in the Indian example, the commentator thinks it’s risky for Westerner businesses to invest in India because corrupt officials often take bribes, promise to deliver certain projects and then disappear – as though nothing happened.

In the meantime, the commentator makes a faint praise of China, where, he says, officials always keep their promises – take the money and do what their money masters tell them to do.

Take that as a compliment, if you will.

About the author:

Zhang Xin is Trainer at chinadaily.com.cn. He has been with China Daily since 1988, when he graduated from Beijing Foreign Studies University. Write him at: zhangxin@chinadaily.com.cn, or raise a question for potential use in a future column.