Is India in danger of becoming a banana republic? How can we prevent this?

On February 9, 2011, a Ghaziabad court rejected the CBI's closure report and ordered Rajesh and Nupur Talwar to face trial on a charge of killing their only daughter Aarushi.

Reacting to the order, Rajesh Talwar said, “I should not have been born in this country. It is nothing but a banana republic.” Aarushi and the Talwars' domestic help Hemraj were found murdered two years ago.

In December last year, taking strong objection to the leakage of his conversation with his public relations officer Nira Radia, Tata Group chairman Ratan Tata had also warned that India was in danger of becoming a banana republic.

The income-tax department had tapped Radia's phones as part of its investigation into alleged irregularities in allocation of mobile telephony spectrum. The conversations were later leaked to the media.

Do you think issues like corruption, terrorism, and misuse of power by the authorities are pushing India towards becoming a banana republic? What do we need to do to prevent this?