.....Caste system - lower caste are treated with complete contempt by higher caste Indians that run the country. That is one of the reasons why majority of the money that central government allocates to the poor gets siphoned off....
You have to try to understand the root cause of why the majority of the aid targeted at the poor in India gets siphoned off.
BD is also very corrupt but most of the money targeted to the poor actually gets into their pockets.
It is not just a case of legally abolishing the caste system but also abolishing it from people's minds.
I am sure that in a 2/3 decades caste would play a very minor role in India, but India is not there yet.
Let me tell you where you're wrong...
You're assuming few things which in reality are different....
Firstly, you're assuming that the political class comprises only of 'higher caste' people and they're siphoning off fund which the're apparently allocating for the poor BUT, backward class/caste has representation too and they're no less corrupt....
Leaders like
Lalu, Mayavati etc. who supposedly represent the backward class/caste of the society are some of the most corrupt leaders too...
Secondly, there is the problem of corrupt bureaucracy, but remember, they're govt. servants and there is reservation for backward class/caste in all govt. jobs in all sectors....so you cannot say that only the 'upper caste' bureaucrats are corrupt and don't want to help the poor 'lower caste' people....
So you see, corrupt people cannot be segregated based on their caste or creed.
The actual problem lies in our Parliamentary system......
Certain things are needed to be changed.....
1. Lack of accountability of the Legislative to the Judiciary......
2. Dependence of the Executive on the Legislative......
Since the Executive is accountable only to the Legislative and the Legislative is self-accountable, no-one is there to stop the neta(Legislative)-bureaucrat(Executive) collusion......so they must be made independent of each other and accountable only to the Judiciary....