Rao On The Ropes

India's latest corruption scandal won't go away. When Bombay financier Harshad Mehta first alleged in June that he had paid a $320,000 bribe to Prime Minister Narasimha Rao in 1991, the ruling Congress Party attempted to bury the incident. But Mehta, implicated in the Bombay stock-market scandal involving Citicorp and other foreign banks, has kept up his attack. If Rao is forced out, India's reforms could stall. Meanwhile, keen to prove his program is intact, Rao is speeding the tedious approval process for foreign investment. Coca-Cola, Peugeot, and GE Capital all just got green lights.

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