Fear & Loathing in our Soft State

Fear and Loathing in our Soft State

“Nowadays people know the price of everything and the value of nothing.” 
― Oscar Wilde, The Picture of Dorian Gray

We have invented Ahimsa in our time, when India was Bharat, an idea as much as a conglomeration of kingdoms, with its mahaan moments. Later, in the 20^th century, we, via the Mahatma, put non-violence on the map, and to the test, as political weaponry.

But day by day, as 2012 comes to an end, it is apparent, wrapped in inchoate outrage, that India is in a moral crisis.  This is now of endemic and epidemic proportions, threatening to destroy our social fabric, and reduce us to a version of anarchy, unless we have already crossed that border.

People in our country, up and down the ladder, demonstrate little respect for human life. We routinely abuse and kill each other in manifold and bestial ways. We maim, strangle, abort, torture; our men, women, children, and animals. We run over people. We crash cars drunk out of our skulls. We cheat, lie, intimidate, corrupt, and brazen it out. We don’t worry much about consequences, because the way things work here, there are hardly any. Our justice system is outdated, cumbersome, ponderous, over burdened and altogether easy to subvert. Our conscience is dead.

This latest rape case, with its horrendous cruelty, is however only the latest in similar rape and kill outrages that have become routine. There is hardly a law which is not freely broken in India, and very few of the outlaws are ever effectively punished.

The perpetrators of crime and violence in India are savage, sadistic, brutal, super confident, remorseless and belligerent with success. They demonstrate their callousness with increasing audacity. They hold the soft state in contempt as well they might.

Paradoxically, we are quite effective when aroused out of our lethargy, but a nation cannot live at crisis point every day and expect to survive. So, most of the time, we are incredibly vulnerable. In America there have been no terrorist attacks since 9/11. We have seen scores since 26/11, and Mumbai is just as unprotected as it was then.

The powers that be are discomfited and embarrassed in the face of murder and mayhem, public anger and anguish, rather than livid with rage; and this by itself is telling comment. They try to contain the damage, even as they no doubt wish they did not have to defend the indefensible. But you can see it on their televised faces, their infuriatingly dulcet tones, and hackneyed anodyne offerings; that all they are waiting for is the next headline to get them off the hook. And the problem, the latest in an unending procession of unacceptability, gets referred to a committee, and thereby goes into the limbo of self perpetuation rather than solution.

We seem to be committed to protect only the political classes, and not terribly well at that. Rajiv Gandhi would not have been assassinated as an Opposition leader seeking re-election, nor his mother as one of India’s most powerful prime ministers, and some say even his bold as brass brother, if we were any good at protecting their lives.

And this is the fate of what has effectively been the ruling family of the republic. It was also the end game for the Father of the Nation. As for the rest of us, starting from the senior bureaucracy and armed forces, particularly in retirement, to the ordinary citizen, it is a daily story of every man for himself. Our heroes are taken for granted and their families ignored after they sacrifice their lives for us. But our villains strut around untroubled by the authorities.

Rape and death here are first cousins. They often assume each other’s fate. It is not just because of poverty, ignorance, upbringing and degeneracy. The US, across their demographics and racial topography, has at least ten times the number of rapes. They murder with abandon too, with everyone allowed to bear arms; but not necessarily as accompaniment to rape. But still nothing can excuse our statistics, because, after the US, albeit a long way behind, India is still the rape capital of the world.

So, if you count yourself as a “mango person”, you are fair game in the jungle. Not that anyone is safe in a soft state. The Maoists want to infiltrate the cities. Perhaps they need to think again and send in their cadres for training to our metros. Besides, the violence in our land, both urban and rural, does not seem to need any ideological justification. The Maoists and Jihadists may need to brainwash themselves but the rest of us don’t. We are medieval and modern, rich, poor, and in-between; but we are all capable of routine wrong-doing, and at the extremities, almost anything at all. In India everyone is a target. All one has to do is fall between a rock and a hard place to fulfil this destiny.

With a population of a billion and a quarter, and millions more born every year, there is plenty by way of replacements and spares. Besides this is the land of karma and reincarnation. Everything heinous has deep causes and can go beyond one lifetime. After all, it is assumed, the good stuff also does. And all of it in timeless India provides a handy excuse for inaction and acceptance.

What can we do about it? No, summary lynchings, castrations, death penalties and zero tolerance will not necessarily cure us.  These might be deterrents to some, but by itself and in isolation, retribution has never effectively controlled crime. The malaise is in our inability to enforce the law, of which God knows, we have more than enough.

To improve our lot we have to get better at everything, and actually mean what we say, and do what we promise. We need to reinduct some imandari and integrity that seems to have gone missing along the way. Our political classes sound fake to be sure, but the rest of us are no better.

If all this protest over the last few years is to achieve anything apart from a tamasha and televised vicariousness, we need to make ourselves more accountable. The State we have, only mirrors our own Dorian Gray faces.

To get a better handle of governance, civic sense, public spiritedness, cleanliness, truthfulness, professionalism, progress, pride, etc. we all need to chip in. Pointing fingers is no doubt fun, but much of the responsibility for the current state of affairs falls to the venality of every man. The girl in the hospital is paying for our sins, so is the policeman.

(1,103 words)

25^th December 2012, Christmas

Gautam Mukherjee

Look Back in Anger

Look Back in Anger

“That voice that cries out doesn't have to be a weakling's does it?” 
― John Osborne, Look Back in Anger

Looking back at 1991 from 2012, the year the world was supposed to come to an end, according to an addled misunderstanding of the Mayan Calendar; is like looking at a road that one can’t do a U turn on.

We are on a “Travelator” with our feet glued to the rubber, a kind of Changi Airport “slow-mo” through infinity. This is because, despite the vigour of our political discourse, no party or coalition in power has sought to unravel the liberalisation process started by the Narasimha Rao Government. It can be reasonably assumed that in the future too, it may be hard to discern forward movement, but the Indian State is not for turning tail either.

Progress after all, like the proverbial river, is a continuum. There is still water rushing by in that river, as it was in 1991, and indeed for decades, even centuries, before that, but it is not, indubitably, the same water. With changes in courses and droughts, floods and spates, it is debatable if it’s actually the “same” river as well.

This analogy, like all analogies, can’t be stretched too far. In present days of humungous dams and the noxious state of the Yamuna at Delhi, the limitations to the perpetual have become graphically evident. But, if one were to tell pre-1991 stories to a 21 year old today, the disbelief is palpable, just as encountering the Yamuna in triumphant puissance at Yamunotri is. And alongside, is a question in his or her eyes. What was wrong with your generation and the ones that preceded yours?

Why did you and all the fancy folk that fought for our independence, create that absurd world of poverty and shortages and bad technology for those years since taking charge? Weren’t you clamouring to be given a chance to set things right?

Are our chronic bottlenecks in infrastructure, no water, the frustrating power outages, the outdated laws, the stifling bureaucracy, the brutal law and order situation, bad educational and health facilities, crumbling public buildings, wholesale corruption etc. today just a consequence of the sloth and lack of vision of the elders? Are we, today’s 21 year olds, just paying for our pitri doshas?

And are we behind the times because we were completely misguided and callous for the forty-four years from 1947 to 1991?

It is difficult to defend oneself in the face of such sweeping indictment, but self respect demands one must try. What then about the formidable “commanding heights of the economy” philosophy that gave us a backbone of long gestation heavy industry undertaken by the Government in a plethora of PSUs? A lot of countries don’t have that kind of base because of over reliance on the private sector with much shorter perspectives. We can aspire to building our own aircraft carriers and nuclear submarines and frigates too, in our own shipyards, thanks to this backstop to our industrial capacities.

 And those shining IIMs and IITs, praised around the globe, that have turned out the very people that both animate and populate half the IT companies around the world? And the number of engineers, doctors and lawyers we have graduated who are second to none in their abilities? What of them?

If our primary education and healthcare systems are poor they can now be set right. In the old days, there were very limited resources, and one had to prioritise. And no, we have no answer as to why we were and are still so poor in the “inclusive” sense, when we are potentially amongst the richest nations in the world.

But, and not just because of our adequate foreign exchange reserves now, if, in the ordinary sense, we have any money to rub together now, almost all of it has come to us since 1991, and the opening up of the Indian economy.

So what would have happened in we were not forced to liberalise our Socialist ways in 1991 by the World Bank? Which did, it must be admitted, pull us back from the precipice of bankruptcy.  

We might have stayed a Soviet client state, but only if the Soviet Union itself had not collapsed. Russia is not quite the USSR as our new armament deals and security/nuclear cooperation with it reveal. We have also been waiting years for that Admiral Goroshkov/Vikramaditya aircraft carrier to arrive at vastly inflated cost.  

We needed to tilt towards the US for those softer terms of engagement with the West, those accesses, give-aways, throw-ins, subsidies, the inclusion and protection; without diplomatically making it too obvious.

Perhaps this sugar daddy could have been China, as it remains an ideological mentor to our Left parties, and paradoxically, to the Maoist terrorists and other subversives too. They want to influence and destroy us at the same time, trade with us and menace us too. It is a very interesting dialectic.

This alliance nevertheless could conceivably have happened, particularly if the CPM had actually allowed Comrade Basu to come to Delhi and become PM. And, of course, if Mr. Jyoti Basu had managed to rule for much longer than the mere months that the Janata Government experiment actually lasted.

But, as it happened, we turned to America. It is the same America that bailed us out in our non-aligned heyday, and saved us from further humiliation at the hands of the Chinese in 1962, and starvation too, as it happened, for almost a decade beyond. They sent their US Peace Corps wafting through our countryside, along with the munificence of the “PL 480” programme of wheat, milk and rice gifted by the US to India.

The US has gone on to become globocop and the centre of a unipolar world now with China chafing at the bit a little, particularly in its neighbourhood.

It is therefore no wonder we meekly agreed to the prescriptions of the World Bank in 1991, controlled as it is lock, stock and two smoking barrels by the US.

India had a week’s foreign exchange left at the time, and had to infamously hock some of its physical gold reserves. Besides, look at the chronology. The great Socialist dream had all but died. China was not Mao’s but Deng’s. The Iron Curtain had gone. And the camp followers were of no use. Today’s Socialism is a very different thing. It runs on seas of oil in Venezuela and it pays for Cuba, orphaned after the demise of the USSR too.

Our Socialist days and nights never added up. But oddly, the ruling UPA can’t quite let go of the headiness of asking for votes in the name of the aam aadmi, translated helpfully by billionaire businessman  Mr.Robert Vadra, as “mango people”, rather than development.  

The Republic of India cannot stand alone without a security alliance despite the high-minded rhetoric of the Non-aligned Movement. We can’t, in the absence of a technologically decent military industry of our own, and the financial muscle to fuel it.

This may however come about in the years to come. It is more than likely to happen, not because of our diplomacy or our intelligence, though they too have, and will continue to play a part. This is illustrated by the nuclear deal pulled off in UPA I. But we will essentially grow much stronger because of the voracious appetite of our domestic market, only second to that of China. The world is eager to service that demand and reap the rewards. And that makes us future rich no matter how hard we try to stay poor.

The pre 1991 scenario, the morass of unfulfilled hopes, the hypocrisy of preaching what the preachers themselves do not follow, could perhaps be likened to the hit John Osborne play of 1956, “Look Back in Anger”, also made into a film three times.

It was all about the tensions between the world-view of a working class man married to an upper class woman and her friend, conjoined in a love triangle, loving and hating simultaneously.

It spawned the phrase ‘angry young man”, as the male protagonist railed against the soul destroying inequities of working-class British life just after the Second World War. The Empire was gone. Britain was now a US satellite living on handouts and rations.

This anger against an unjust fate was juxtaposed with a sense of betrayal emanating from the protagonist’s upper-class wife and mistress, not trapped in class angst like him, but with enough dead ends of their own in a changed, more egalitarian world.

In India, the same phrase was applied to a phenomenal new star called Amitabh Bacchchan who smouldered in the Salim-Javed scripted “Deewar” (1975). A film in which the hero emoted against the inequities of being poor and trapped in a Socialist India of the Seventies.

Of course, a commercial super-hit like Deewar did not frame the narrative in these terms, but that is what it was. And like John Osborne’s male protagonist’s upper class wife, Amitabh Bacchchan, scrabbling on the street to make a living, also had a girlfriend who was an upper-class smoking, drinking, sleeping without benefit of wedlock, sort of young woman; played memorably by Parveen Babi.  

And Amitabh Bacchchan, our own “angry young man” built his career on the persona in film after film with Salim-Javed in close attendance. And it resonated with an adoring audience that lapped up every one of his vigilante escapades delivering a rough and ready justice and equity every time.

1991 then, probably gave the Indian back his right to expect his dreams to come true. We may be a long way from Tipperary still, but we can certainly aspire today. We could become a developed country some day. But in the forty four years before 1991, it wasn’t very Indian to want things.

What was promoted by rote instead was a spirit of  Gandhian simplicity and sacrifice. But, like the huge and immensely strong cart-horse Boxer in George Orwell’s “Animal Farm”(1945); one might wonder why it all dissolved into self serving cynicism and intolerance. Wasn’t Socialism meant to be more equitable than Colonialism and the Zamindari System? Then why didn’t it deliver?

On the other hand, these 21 years of Reform since 1991, such as they are, have been transformational for India. Our possibilities and achievements have leap-frogged ahead compared to the previous decades. This, despite a very slow pace of progress, riddled with protests such as the ones currently plaguing the FDI in multi-brand retailing.

Also, we have certainly not carried the poor along with us in any meaningful manner, but is this a failure of the principle of the free market, or a shabby and sometimes non-existent implementation of its tenets? In any case we are on the Travelator and there are no stops scheduled.   

       

(1,809 words)

December 22^nd, 2012

Gautam Mukherjee

                                                                                                                

The Impending Retail Bonanza

The impending retail bonanza

 

Despite the fuss made in the Rajya Sabha on Walmart’s reported lobbying expenses, the legislative deed on FDI in multi-brand retail is indeed done. It makes the Opposition BJP and the Left look like they don’t want progress, even as the Government won the much clamoured for voting on the issue.

 The Left has always been more committed to its ideology than the demands of the economy, but the BJP’s stand is somewhat inconsistent and inexplicable. Many of the reasons advanced by its stalwarts during the parliamentary debates would most likely fail to convince their own roster of high-achieving Chief Ministers in Gujarat, Madhya Pradesh and Goa.

All three states, among the several the BJP runs with reasonable competence, are progressing much faster than their peers, because of their strong emphasis on market economics. But the BJP central leadership and possibly the less transparent ideological backdrop in the RSS et al, seem to be on their own trip.

Some senior leaders in the BJP have even made bold to say that they will scrap FDI in multi-brand retail if voted to power in 2014. This is disappointing, and hopefully just political rhetoric. Most votaries of right-off-centre economics are not generally happy with the UPA’s mostly Socialist leanings. But now they must be feeling a little orphaned.

This is definitely a modern progressive development that rightly flies in the face of the protectionist instincts of a section of both the populace and its elected representatives. But closed economies, protectionism, suppressed competition, has truly had its day.

Today, this kind of insularity and big-brother-knows-bestism is almost impossible to enforce in a relentlessly globalised world. Demand, when it exists, will be met, by hook or by crook. But this way, at least the smugglers, the grey-marketeers, the profiteering importers, will have to look at something else. And the inefficiencies in the name of the indigenous and timeless bania-bred retailing system with have to upgrade or languish.

A great deal of the kudos for some adroit cross-party management, to make this milestone possible, needs to go to Parliamentary Affairs Minister Mr. Kamal Nath.

He has pulled off not only the voting on this controversial matter in UPA’s favour in both houses, but avoided the sticky logjam that has voided the previous two sessions and piled up the unpassed bills.

Significantly, Mr. Kamal Nath has recently also initiated both the regularisation of New Delhi’s many, running into their thousands, “illegal” colonies; and also the sprawling up-market farm houses, in a pragmatic and people friendly move. A move that is non-doctrinaire for once, and moreover freely points out the unrealistic nature of several of our rules and regulations and the glaring weaknesses of our master planning for the Capital. This, while wearing his Urban Affairs hat, of course.

But the freshly minted FDI triumph, that is still mostly being viewed as a bout of skilled political footwork, has much to recommend it. Not only to the eager customers it will benefit, but also to the global investment community which has at last received a positive signal from India after a number of wilfully regressive ones.

As for the fillip that our farming and manufacturing sectors will receive, inclusive of new employment opportunities, also the advertising and marketing end of the consumer rainbow; the impact is likely to be both uplifting and transformational. It will further professionalises our game and vastly improve our choices.

There will also be tens of thousands of retail industry jobs created in the accelerated urbanisation and penetration into some 200 “A B and C” class cities and towns.  No one amongst the foreign investors is going to take the money and run back to their country. There is, truth be told, nowhere to run to. Europe and America lack unrequited demand, while ours is almost endless. There are more bangs for the buck to be had right here.

And here too, gone are the days of the four or six metro cities thought to be sophisticated enough to receive modernity, surrounded by the darkness of the rest of India. All this is changing, as the statistics on the purchases being made by rural and those 200 cities and towns of India show. It is dawning on the many pundits that the unmet demand for sophisticated and modern facilities is probably the strongest in these parts.

Walmart already knows all this. That is why it has reportedly spent US$ 25 million over the years since 2008 on professional lobbyists to try and influence, among other things, the US and Indian Governments to permit foreign investors into multi-brand retailing in India.

And this US$ 25 million is apparently not a big outlay when you look at their estimates of the size of the Indian retail market. Walmart thinks it is worth US$ 500 billion currently, and likely to rise to US$ 1 trillion by 2020!

That magic figure of US $ 1 trillion is more or less the size of the official Indian economy, all of it, at present. And it took us 65 years to arrive at, or very near it, since independence in 1947.

 So, even at present, Walmart’s take on the retail tally and the consumerism it represents, is about half of the official economy, and perhaps a quarter or 20% of the entire Indian economy, with the cash-and-carry-without-benefit-of-banking part of things included.

 Mrs. Shiela Dikshit’s Government of Delhi State has been first off the blocks in its effort to implement the FDI in multi-brand retail. Her Government’s only fear is the misstep that could brings the political hornets buzzing angrily in its wake. But carefully as it comes about, FDI in multi-brand retailing will be most welcome.

And the Prime Minister is not lagging behind in his overtures to the farmers of his ethnic home state of Punjab, to welcome the opportunities that FDI in multi-brand retail is expected to bring to them. Punjab, as usual, will not be found wanting. The State is full of progressive farmers not scared of risking their arm.

And while there is much trepidation in the hearts of some that it will swamp our farmers, middle-men, small shops etc, and ruin, through unfair pricing, our none too robust manufacturing; there is little hard data from elsewhere to support this apprehension.

How are higher wage economies to compete with us? Won’t it be much more lucrative for the foreigners to manufacture here for other markets too? How much dumping is sustainable over time? No, fear-mongering apart, we are likely to see greater choice, better prices and quality because of the open competition.  

 (1,097 words)

December 11^th, 2012
Gautam Mukherjee

The Indian Fiscal Cliff of GNPA

The Indian Fiscal Cliff of Non-Performing Assets

India’s public sector nationalised banks, often directed by the Government to lend money to commercially unviable borrowers, are burdened by huge gross non-performing assets (GNPA). This, along with the huge borrowings of the Government, and the ever-widening fiscal deficit, are seriously eroding the strength of the economy as a whole.

The alarming rise in GNPA was made evident by Minister of State for Finance Mr. Namo Narain Meena in a written reply to a question in the Rajya Sabha recently. The Minister’s reply sought to take refuge in the reduced percentages in the 6 month period till September 2012, in comparison to the full year figures for the previous financial year till 31^st March 2012, but taken on a pro-rata basis. This might amount to sleight-of-hand at the half-yearly mark, using incomplete figures.

 The fact is, the total quantum of lending in the top PSU and Scheduled Commercial Banks has increased this financial year, and the NPA too have risen alongside in absolute terms. This, even though there has been a decrease, or apparent slowing in the pace of increase of GNPA in percentage terms, over the previous fiscal, at least up to the half-yearly mark.

The total GNPA quantum nevertheless spread over all Public Sector Banks (PSB) and Scheduled Commercial Banks (SCB) till 30 September 2012 stood at Rs. 62,602.57 crores, but this is declared only on a provisional basis. The amount for the last fiscal full year was Rs. 56, 332.30 crores, so yes, the GNPA has increased at a much slower pace, based on the face value of the figures released by the Minister.

There are also multiple directives from the Reserve Bank of India the Minister cites, towards tightening loan recovery policies and procedures, which nevertheless are silent on the credit risk assessments and collaterals taken before such loans were given.

The effort of the RBI to smarten up recovery processes, procedures and time-frames are not very likely to yield substantial results once the loans have already gone bad. The horses may well have bolted, having found the paddock gates open. The RBI may be seized of this possibility too, because it has also touched on the matter of cleaning up the books by effecting write-offs of some of these GNPAs on a “prudential” basis.

Another worrisome fact, less so in the case of PSB and SCB of course, because they can be propped up by Government executive action, broadly unlike the private sector, is the probability of  the GNPA outstripping the capitalisation of many of these lending institutions. And this includes the substantial State Bank of India Group.

The Government, including the RBI, may well want to have the PSB and SCB to cultivate a better portfolio of assets, but this laudable objective is often in conflict with politically inspired lending that tends to be more interested in pleasing and catering to target groups. The ultimate risk however in such a scenario is to the fiscal health of the entire system.

A country without fiscal discipline cannot create the right environment for investment and growth. The question is, are these GNPA figures accurate, or optimistic?  Are the percentages and absolute quantums declining truly, or is this a consequence of redefinition of what constitutes a GNPA? Our long history of Soviet-style jugglery with statistics does not necessarily inspire confidence. Nor does the Leftist tendency to spend money that the country does not have by either increasing borrowings or printing more money, or both. When a banking system flirts with bankruptcy, inflation may be the least of our worries.

(593 words)

1^st December 2012

Gautam Mukherjee

Turning the Corner?

Turning the corner?

What does the recent Moody “Stable” rating given in its “credit analysis on India” mean; quite apart from the euphoria of a 305 point rally on the Sensex?

I am not speaking of the reasons and justifications already advanced by the rating agency in its report, but the ripple effect its bottom-line verdict is already having, within the week after, on the mood and economic perception of India.

After all, it also saw, on the same day as the Moody report was released, the rupee slide to an all-time low of almost Rs. 58 to the US dollar, apparently on the back of fleeing Foreign Institutional Investor (FII) funds and the scarce US dollar in our financial system!

Moody’s report dutifully points to the challenges of the yawning fiscal deficit, the high Government debt, poor and bottle-necked infrastructure, both physical and social, political uncertainty,  stubborn inflation and other issues. And yet, it seems to suggest, the Indian economy is not headed downwards in a ruinous and out of control spiral.  

But does the Moody rating harbinger the end, or at least the beginning of the end, of the precipitous slide down the slippery slope of our economy?

Will others, such as Standard & Poor (S&P) chime in with similar guarded optimism along with the expected bushel of ifs and buts? Probably, because the international rating agencies tend to follow a similar matrix for its analyses. Happily therefore, at least in this instance, the past suggests the foreign rating agencies seem to be the first to indicate which way the wind is blowing economically. And they tend to be taken more seriously too than our desi, largely Government-owned economy watchers.  

This sort of foreign observed prescience spills over into other areas as well. In the old days, if one wanted the truth about the news in real time, for example when Mrs Indira Gandhi was assassinated in 1984, you turned on the radio and tuned into the BBC.

To lend credence to this statement, remember the famous picture of that fateful day which had the just bereaved Rajiv Gandhi standing by an SUV of the time, on a road- side in Orissa, tuning into the BBC on his independent little Sony radio. He was trying to get the unvarnished status on his mother, not really forthcoming on either Doordarshan or All India Radio (AIR), till much later, no doubt after being allowed and cleared to air the accurate reports.

 So, maybe we can look forward to a much economically healthier 2013. You and I may be forgiven for our lack of optimism at this time about the Indian Government’s ability to stimulate the growth that always seems so elusive. And also the pessimism one tends to feel because of our profligate lack of policy consistency.  And also on the legions of economists in our ministries and central banks who tend not to take the need for growth as seriously as they might.

Also, notwithstanding our precarious finances, we are reportedly also about to embark on a direct to- the-poor cash-back policy on subsidies, likely to cost the exchequer thousands, no tens of thousands of crores!

So, how does Moody arrive at its optimism? Frankly, I don’t know, despite the reasons given, except to say that perhaps things are not as bad economically as they seem. And perhaps we gain in comparison to the crumbling economies of large parts of Europe.

At least, we in India definitely possess almost bottomless demand domestically, and that is nothing to sniff at. Any classic economic analysis has to concede that having the demand is half the battle won. All that remains theoretically is the supply side of things. But in India we have a talent to make everything as difficult and complicated as possible, so nothing necessarily happens in logical progression.

The other point, among the many made in the Moody report, is with regard to our inadequate and over burdened infrastructure, which curtails our progress more effectively than the vagaries of our political process.

And in this, the point is hampered only one part by lack of finance and administrative inertia. The other part is to do with inadequate know-how, and perhaps an embedded reluctance to acquire it from elsewhere.

In this connection the recent initiative to collaborate with the Chinese to develop high speed Railways for both passengers and freight is most welcome. Among our inheritances from British times, the Railways are amongst the most valuable, but we have not been able to seriously modernise or upgrade the network to current day standards. We have extended it and converted gauges, yes.  And we were able to go from steam to diesel to electric gradually over the years. But our rolling stock, signalling systems, track technology, railway station infrastructure, catering and cleaning systems and so on, all still belong to a bygone era.

The Chinese have built the spectacular Beijing to Lhasa Railway in record time overcoming major challenges, as well as many other high speed train links to rival the famed bullet trains of Japan or the TGV of Europe. They can certainly guide our efforts, and it is most pragmatic of the Government to think of asking them to do so.

And those who feel that the best way to right the balance of trade with China is to actually engage in more of it, are naturally delighted. It may also contribute to a lessening of tension and suspicion between the two nations, despite the border disputes and other outstanding claims and counter claims of territory, the controversial and colonial McMahon Line and so forth. 

Our economy has suffered since the world economy crashed in 2008, not from a lack of opportunity to grow, but from too much caution in the face of turbulence. We choked off our own growth rate by raising interest rates and making credit unaffordable, without however being able to control inflation imported with our ballooning oil bill.

It is an obvious indictment of our incipient Socialism, still lurking just below the surface, that we think nothing of sabotaging growth whenever we want as a first option. But wrecking a nearly nine per cent per annum momentum in the GDP to serve the cause of controlling “food inflation” was, and is, arrogant and short-sighted. To build it back from five per cent will not be so easy. 

But perhaps now, in the final years of the present Government’s tenure, we will rectify the imbalance in our over-reactions and promote growth afresh. The Prime Minister, the original Mr. Reform of 1991, has declared his intent in plain terms. The West seems to believe him.

(1,105 words)

28^th November 2012

Gautam Mukherjee

One for the Money, Two for the Show

One for the Money, Two for the Show

The belated Congress/UPA boosting of the Reforms process, reiterated at their  show-of-strength rally  in Delhi and bussed in Chintan Baithak at Suraj Kund, Haryana, needs to be unequivocally welcomed.

It may have come against the threat of India being down-graded to “junk” investment status by the international rating agencies, making our international borrowings costlier in the event, and promising to dry up the relatively meagre investment funds flow. But at least it shook the Government out of its neo-socialist reverie even if the grim statistics did not.

There is a definite silver lining to the no-nonsense development. It is a truism after all, that India takes perverse pleasure in being at least fifty years behind even featherweight countries in terms of development. Thank God therefore for the presumed objectiveness and incorruptibility of the rating agencies!

Building protectionist barriers are just postponement of the inevitable. Chinese goods, for example, are ubiquitous in Indian markets and are being lapped up enthusiastically by a public that finds them cheaper and better. This competitiveness cannot be legislated away.

The fact is, better goods at cheaper prices are people friendly. Even goods that may not last, but have fancier bells and whistles at a cheaper price, are perceived to be worth the money. And none of us care where it comes from ideologically.

Besides, every internationally designed garment is tailored in China and very well at that. One is forced to acknowledge the powerhouse of manufacturing that China has become. And no protectionism steeped in wishful thinking can reverse such tides. And this is without reference to the project-execution capabilities and  other such formidable Chinese strengths.

But yes, there is a need for greater inclusiveness in our progress. Reform cannot be allowed to lead to19^th century robber-baronism. Though our scam-a-day reality does not need reform to flourish anyway! Still, it is paranoid to be suspicious of foreigners, their capital, and know-how. We need instead less lip-service and more action on the ground.

The much vilified Gujarat administration for example, routinely labelled communal, yet is reported to have the largest number of Muslim policemen in comparison with any other state!

The routine cheating of hearts in the name of the poor, the minorities, the ordinary citizen, has to be replaced with a true spirit of public service. Activism from Anna Hazare and his cohorts, and Arvind Kejriwal and his, only underscores the notion that the political classes have abdicated this space - to them and others, like the RTI based activists, the Swamis and Babas etc.

This is a time of shifting sands. And this reality, juxtaposed with the recent reports that India will become the world’s biggest economy by 2060, surpassing that of China, even as our per capita will be one of the lowest. This is the real stuff of Chintan Baithaks to come.

Will we grow so big because of the low cost economy fuelled by millions of newly born poor people? Or will we dominate the world economy because our consumption and demand per capita will drive growth at over 5% per annum compounded? Or does the credit go to the improved infrastructure to come that will help sustain a high level of GDP growth?

And socially, are we going to polarise between a few rich people with the ability to buy endlessly and millions of poor people with little or no purchasing power? Or will it be a relative thing all the way up and down the pyramid?

Many large business houses making cars and FMCG today are busy catering to the “sachet” market on the assumption that one can grow very wealthy in India selling to the poor. We may be quasi-socialists as yet, but are still the envy of the ageing and shrinking populations of capitalist Europe and even China. Our very failure at draconian population control, the storied “do ya teen bus”, may be our White Knight.

Today, looking back to the extensive population control campaign of the Seventies, most families indeed have two or three children; but then the base line has expanded to nearly 1.25 billion people.

Coming back to the crossroad in 2012, raising a bogey against the wheels of progress, CPI(M) or TMC style, against globalisation and foreign direct investment as an ideological aversion amounting to anathema, is purely negative milking of a fear.

The fear-mongering is that the aam aadmi will be badly affected by what will bring modernisation, efficiency, quality-boosting and progress. And that being linked to the global economy is to sink with it. There is no hope in the Leftist mind that the Western economies will ever revive from their excesses and no recognition of business or economic cycles.

This self righteous but actually spurious protest may well turn out to be the theme in the coming session of parliament as well. This, and the thundering against the wall of corruption of tsunami proportions threatening to engulf us.

But preventing parliament from functioning does nothing to cover the principal Opposition, the BJP, in glory either. The aam aadmi  ends up paying to witness a boorish circus time after time with nothing to show for it. This will be the third session in a row, if it too is stymied.

And the public can be forgiven for being confused about what the political Right stands for economically. After all, it keeps making common cause with the radical Left whenever it suits them. It also accuses the Government of rampant corruption while stubbornly refusing to measure itself against the same yardstick. Messrs. Jethmalani, both father and son, eminent lawyers and BJP leaders that they are, don’t seem to be making a dent.

Besides there is more, the size of a herd of elephants in the roomy chambers of the Lok Sabha. The puerile attitude of painting Maoists as disgruntled patriots for example. Old assumptions like the inviolability of treaties with the State of Jammu and Kashmir which need to be urgently abrogated. And why wait when even political dynasts from that state call India the “Enemy”?

No country should tolerate such challenges to its sovereignty without revisiting its  date-expired much too liberal premises. Why is this one quasi-state allowed its outrageous privileges in 2012, and why is the rest of India paying for them in money and blood?

And this, when every other constituency, such as the Princes, the private banks/ insurance companies, the zamindars, etc. promised, in 1947, Government protection till the end of the republic, has been ruthlessly ravaged by the state.

We have just come through yet another “festival of lights”. So when oh when do we start vanquishing the darkness?

(1,102 words)

13^th November 2012, Diwali

Gautam Mukherjee

Shameless in Sitapur Part One

Shameless in Sitapur Part One

We Indians, recent events seem to suggest, need to scrap and jettison a lot of laws and rules before we are totally overwhelmed by them. This notwithstanding the large and voluble efforts of anti-corruption activists such as Mr. Arvind Kejriwal. His erstwhile mentor, Mr. Anna Hazare may be advising him to stick to one scam at a time but there is such an avalanche of them that Mr. Kejriwal is likely to be swamped no matter which strategy he adopts.  

The Government and its allies, along with the worthy Opposition, are equally comfortable maintaining their illusions and self-importance. They are also very sure that they have the answers, even if no one else seems to be sure.

 But by way of contrast, very few talk of corruption in the tiny Emirate of Dubai where the Commercial Law can be contained, without exaggerating too much, on one side of A4 paper in double-spacing.

It is no real wonder that Dubai is beloved of the flashiest robber barons money can attract. Because there, they can go about their business both unhindered and unlabeled. The catch is that the emirate is very small indeed, and the “re-export” business to Africa, India and Iran is no longer what it used to be.

This is not to say that the citizens of Dubai are essentially any more virtuous than Indians. But there are some important differences in the way the Emirates are organised politically, and what constitutes a wrong-doing there. Also, any whisper of or about corruption in the UAE  constituted of Dubai, Sharjah, Abu Dhabi, Ajman and Ras Al Khaimah, is likely to be considered treasonous, as all large enterprise has links to the one or the other Emir’s Secretariat.

And the Rulers with their families in the confederation own a sizeable piece of almost every worthwhile pie being baked in the Emirates. Also, they are very big on law and order over there, enforced by impressively armed and trained para-military forces that police the populace. The local media, as may be expected, is tame, polite and self-censored as a company newsletter.

But here in rambunctious India, it is the seemingly eternal battle royal between laissez-faire, as in the good old days of the John Company aka the East India Company, and the hugely Socialist inspired Licence-Permit Raj. The Indian instinct and ingenuity, illustrated perhaps by the delightful jugaad phenomenon, is to operate without fetters. That is why we tend to do well whenever and wherever we re allowed to be ourselves. But, sadly, and somewhat paradoxically, in our own country, we are free to be ourselves as long as, and only, if we are prepared to make short work of the law.  

And of the latter we have a profusion. We have laws, codicils, principles and guidelines, so many, so confusing, and subject to so much interpretation. They are tentacular, all encompassing, layer upon layer, with never a rule or law apparently scrapped since the time of Manu the Law Giver!  

But despite their sheer number and complexity, we are not good at formulating them, as most are badly drafted and riddled with loopholes, and lead to ever further corruption. Nor, alas, are we any good at enforcing them perhaps out of sheer lassitude in our hot tropical climate. Which makes us possibly the most law-riddled  but free do-as-you please country in the world. We live in a legal gridlock. So bypassing the hurdles has become a national habit.

Most law-enforcers on their part would have to back-pack the equivalent of a now largely extinct 21 volume encyclopaedia to cope. To have it all memorised by heart is a near impossibility, and a woeful waste of talent for the few who may be up to the task. Besides the powers-that-be know that it is the very laws, God bless them, that enable them to enrich themselves.

So there are the ever shifting sands of internal guidelines on how to interpret the rules, with varying emphases and exceptions added periodically, providing yet other continent size ambivalences and the opportunities in their midst.

As far as the wrong-doers go, as is observed quite frequently now, they can brazen it out more often than not, determined to be totally shameless. The political classes are almost uniformly compromised, so there is little embarrassment between pots and kettles when both are quite sooty. The bureaucratic babus and the private business types are not exactly lagging behind in this chorus either.

Almost everyone has fallen foul, voluntarily or not, of some regulation or the other. It is almost impossible to be totally honest/law abiding in this country and still be alive and functional. The situational evidence seems to suggest that in order to operate at all in India one must break some rules.

And some feel that if they must break some, they might as well break some profitable ones and make a lucrative job of it. After all, it is necessary to carry people along if one is going to flout laws. A little baksheesh here, an incentive there, a fat bribe sent around discreetly, an enormous audacious killing to catapult oneself into a bigger league, all have become acceptable.

The other glaring issue is the sheer size and heft of our Government, the author and guardian of our lawfulness. Apart from being the largest employer in the organised sectors, it has grown both gargantuan and extremely expensive to maintain. And there is no likelihood of it shrinking or ever going on a diet. In fact, it grows larger every day. 

And all of this awesome edifice is supported by the taxes levied on quite a small proportion of the overall population which is forced to pay all the direct and indirect taxes. Most states have little left over for growth and development after all the salaries and benefits have been paid. Ditto the Centre, and being thus over burdened by its own needs, the Government also refuses to let in much foreign capital for fear of losing its monopoly on power. A power built on denying the concessions it would be required to make.

Besides, being enormous and inefficient, the Government of India is almost singularly unaccountable, even to itself. Like a very long queue, nobody quite knows where it begins or ends anymore. It is the nearest approximation to infinity the Indian mind can devise. And so we have to congratulate ourselves for devising a political entity to resemble our ancient philosophies of an unbroken continuum that goes on lifetime after lifetime evolving as it progresses. Don’t worry, there is no conclusion to be drawn. It would be so un-Indian to do so.

  

(1, 106 words)

October 30^th, 2012

Gautam Mukherjee

Suspicious Minds & Remix of gali gali me shor hai

Suspicious Minds & Remix of gali gali me shor hai

“She was with Big Jim but she was leaning to the Jack of Hearts”
Lily, Rosemary and the Jack of Hearts- Bob Dylan

No one can prove the effects of influence, ephemeral and elusive. More so, in a Court of Law. No matter how high the stack of circumstantial evidence may be. Unless, that is, one has been silly enough to leave a paper, audio, DNA, smoking gun or bloody knife trail that serves up the proof. Some very intelligent people routinely make this mistake, confused between the DIY doing, and the once removed having it done.

That is how a smooth operator like Rajat Gupta, erstwhile of McKinsey and Goldman Sachs, was convicted. Mr. Gupta was convicted on three counts of securities fraud and one count of conspiracy for passing along confidential boardroom information about Goldman and Proctor & Gamble companies to the Galleon Hedge Fund.

By way of contrast, despite the sensational nature of its contents, the Radia Tapes of former PR Consultant Nira Radia have become mired in multiplicities of interpretation. Hours of interrogation of the lady herself has proved inconclusive too. Other bits of proof though saw both the Telecommunications Minister A Raja and DMK Supremo M Karunanidhi’s daughter and Lok Sabha MP Kanimozi spend longish spells in jail.

But then the DMK didn’t, and still doesn’t have the influence that certain other players in the game of influencing outcomes do. And no flashmob posse of Union Ministers came to Raja or Kanimozi’s defence either.

There is, it is seen, a voluntary and reactive aspect to influence mongering and peddling, a judgemental consequence, that can be viewed in a number of ways. So most such wrong-doing wears the garb of reasonableness, selflessness, feigned innocence, even virtue. It exploits and brazenly feeds off the fact that, conducted well, it can’t be proved. And if challenged, reacts with disdain, outrage and defiance and the sure knowledge that others live in glass houses too.

The Bofors Saga is still unproven in many of its aspects with many henchmen of the powers that be burying and burning any evidence that had the temerity to threaten the citadel. As are the Sikh massacres of 1984 or indeed its bête noire, the Godhra Riots of 2002.

But then, maddening as this subterfuge of working the cracks and crevasses of the system may be; most suspicions of being wronged, as in betrayed, are not particularly settled in a Court of Law.

Crimes of passion by definition cannot wait. And blatant wrongs done to the electorate in a functioning democracy like ours usually results in electoral defeat.

Politicians and senior bureaucrats, satraps and nawabs, know this, but the possibility makes them either insecure or complacent, and so they get on with their  paisa wasooli anyway.

The logic being that power, like youth and beauty is fleeting and waits for no man. So making the most of the present situation is not only sensible but appropriate. And what is the harm in diluting one’s integrity a little, or even a lot, in the greater cause of security and pragmatism?

Electoral politics, and hanging on to one’s perch on the greased pole of bureaucratic or corporate power, they say to themselves, is an expensive business, and needs to carry many people, along with their goodwill.

And money for the purpose certainly does not grow on trees. No one in politics or in the exercise of power can afford to have empty coffers and still be in a position to influence outcomes. And here we go, the crux of the issue, there’s that influence word again.

 Besides, in principle, there is nothing illegal about it. It may be unfair advantage to some, but influence mongering is what makes the world go around. That the powerful everywhere give their own both special privileges and easy passage is a routine thing.

 And so, Arvind Kejriwal’s decision to “expose” the shenanigans of the son-in-law of the Congress President is probably the best bangs-for-the-buck strategy he could have adopted. Besides, our notoriously ponderous legal system is not above being influenced a little itself. And the tag of sub judice puts paid to most controversies almost as effectively as sending controversies to parliamentary or judicial committee.

Mr. Kejriwal and his rag-tag band of IAC activists may be a nuisance to some but he and they are providing a very important constitutional role of oversight that has been given short shrift lately. Instead they, that is the powers, have become a law unto themselves, immune from the wants and needs of the populace that they rule in the name of.

Kejriwal & Co may be seeking “publicity” as their uncomfortable critics like to sneer but they are providing some of what the checks and balances in the system were supposed to. Likewise, the CAG, under its unusually active current Chief Mr. Vinod Rai, has been less than pliant of late. Predictably, it too is receiving a lot of flak and ridicule from the political establishment named in its indictments.

The fact is, the ruling dispensation is now childishly allergic to criticism from within or without. It counters each barb with a counter barb aimed at the perpetrators via its spokespersons. And these talking heads are sounding more and more beleaguered and under siege by the day.

And this, whether it is being attacked by its own uneasy allies such as the SP or BSP, or former ones such as the Trinamool Congress or the Left. Not to mention the legitimate Opposition, the less than compliant elements in the media, ostensibly “social” activist/critics such as Baba Ramdev and Anna Hazare, or those in Kejriwal’s  bus about to plunge into the electoral fray themselves.

More and more it looks like a leadership crisis, with the Gandhi family “High Command” no longer able to either provide the electoral dividend or the strategic direction to hold the UPA II coalition together till 2014.

The Gandhi family’s likelihood of leading the electoral battle successfully, when it comes, is in some doubt too. But to be fair, as declines and falls go, this was inevitable. Most dynasties tend to flounder in the third generation and this is already in extra-time trying to establish the fourth.

Perhaps the rampant and competitive corruption everywhere in the Government and its friends is of a piece with the realisation that the game is drawing to its inexorable end. The political discourse may be about to undergo a substantial change. And not just because of a vociferous Opposition. The ruling UPA, it appears, is overdue for some radical overhauling of its own.

(1,098 words)

15^th October 2012

Gautam Mukherjee

Reform at the precipice

Reform at the precipice

It is said that philosopher and wit Voltaire was asked to repent for his wicked ways and denounce the Devil at his deathbed. Denying the soul-seeking priest, Voltaire, thought otherwise. He said he didn’t think it was an opportune time to make fresh enemies.

The Indian politician is reluctant to make an enemy of the Socialism that has hidden a thousand sins for him. Almost as many as his white kurta- pajama and the ironically out-of-date Gandhi cap, that the Mahatma incidentally never wore. In the name of the poor, lofty pronouncements and sentiments have served to deflect criticism from massive inefficiency, mind-numbing delay, and rampant corruption.

The market economy, with its relentless logic and consequence, is far less forgiving. And the Indian neta knows it full well. Our master-of-paradox style Indian politician may routinely practice an arch Capitalism in his private affairs, but the fount of his power, pelf and influence, he knows, is his bleeding heart lip-service to the cause of the poor.

It is yet another travesty of the truth that the poor have been uplifted only at snail’s pace in the last 65 years; while the politician that is not in hundreds of crores today, is a very incompetent politician indeed. 

The perverse thing about progress itself in India is that it is never a priority. All progress, political, economic, social, comes to us when we are at crisis point. This applies to fundamentals such as power, water, education, health and so on as much as it applies to the quality of our democracy. And democracy in India also seems to evolve and mature only with a gun to its head.

That penny-ante nations have no problem dealing with basic civic necessities like roads, electricity, water and modernity commensurate with the second decade of the 21^st century does not worry our disgraceful obtuseness.

 Perhaps, because this is a deeply religious country and people, God comes mysteriously to the rescue, lifting us from the routine morass we build for ourselves. It is God that helps us transcend our multiple infirmities and denies the doomsayers their satisfaction. In a round about way, this is what the Bible meant when it said the meek shall inherit the earth. The faith of our poor, their acceptance of suffering, moves the Gods to protect them.

Because, our educated elite that largely run this country, are experts at sitting on their hands. It is only when we are between a rock and a hard place, that the political dispensation of the day is able to push through any beneficial reform. And that too, after eliciting a hue and cry for challenging the status quo. We do very little to anticipate future demand and supply dynamics, probably to avoid stirring a hornet’s nest. We are a country of man-made and artificial shortages, much ameliorated since 1991.

But in many things there has been inadequate change. A good example is higher education, that needs entrance marks in the high nineties, and objective observers do find the occurrence of such percentages both suspect and incredible.

In recent times, and it is necessary to restrict ourselves to recent times, because the pre 1991 India was a much sadder narrative of poverty, shortages, neediness, hubris, and obsolescence.

Prime Minister Narasimha Rao and then Finance Minister Manmohan Singh were able to transform Indian possibilities as we knew it since 1947. But it was only at the point of looming bankruptcy. That most reforms then were dictated to us by the World Bank in return for a life saving rescue package of loans, is the telling point.

And here we are in 2012, twenty one years later, with Prime Minister Manmohan Singh showing some of his reformist zeal again, but only, once again at the menacing threat of a crashing economy.

The dismaying thing is the disarray in the political landscape. The Opposition, at various times in favour of reform measures, are busy cheeseparing their own confusion. The Government’s allies are sniffing around desperately for a political foothold that they can make capital out of.

Almost all of the objecting discourse smells of sour grapes and Luddite fear. Prime Minister Manmohan Singh is addressing his legacy at the home stretch of his tenure. The Congress Party, with its own generally useful fifth column of sharp Left protagonists, finds itself helpless to resist presently. Socialism is therefore stymied, if unconvinced, for the moment.

But when have we ever welcomed change? In Prime Minister Rajiv Gandhi’s time, blessed with a record breaking majority in Parliament, he still had a deuce of a time introducing computers in Government offices and banks, despite being labelled “Computerji”.

And babus, in their classically anachronistic manner, promptly put their PA’s to operating the “infernal machine”, even as they carried on dictating letters and spending all day correcting “drafts”.

And today, every political party, including the Leftists within the Congress Party and many others in the UPA, want to scuttle all of Prime Minister Manmohan Singh’s belated attempts at reform.

There is a lot of cant and misinformation in the air about every one of the initiatives announced and contemplated. The strange thing is we seem to abhor efficiency and refuse to acknowledge that we have much to learn. This even as we know precious little about the intricacies involved in multi-brand retail.

By letting in the world’s best in such fields we could learn a lot, but do we really want to? No, instead we prefer to cry wolf about the small trader and the small farmer, steeped in orthodoxy, xenophobia, obscurantism and chronic backwardness.

Pension reform and foreign investment in the airline industry, already a decade or more late because of raucous vested interest, is still attracting controversy just as it did in the nineties.

We can only dream of a Japanese style consensus on reform in India, where every political party backs it, but there is only a nuanced difference in degree. Instead we have the politics of the bazaar, and it is anybody’s guess what kind of oxymoron will emerge from all the resultant compromise.

The objections, after all, are mostly designed to attack the Government wrong or right. But it is the country and the people who will suffer in this battle for votes at all costs using shibboleths long past their sell-by dates.

But there remains one certainty. And the Soviets, who are by no means experts, having gone so completely the way of all flesh, said it years ago. They thought, in the first flush of the Nehru era, that this country is indeed run by God, as otherwise it wouldn’t run at all.

(1,104 words)

October 2^nd 2012

Gautam Mukherjee

Pain without gain

Pain without gain

No Government of a billion plus people can withstand the tens of thousands of crores of subsidy bill that fuel and gas subsidies entail. Not with the demand curve, and indeed the cost of imported petroleum crude, in ever rising mode. This move, controversial as it seems, may therefore be seen as pragmatic in a sea of “political” steps.

Political initiatives such as a rising list of massive welfare schemes and attempts to institute quotas for underprivileged sections. But this, without figuring out how to pay for them, or, in the case of the “Quota Raj”, how to address the blows it delivers to meritocracy.

The stock market, more or less moribund lately, jumped upwards. It likes any attempt to balance the budget because that is just “arithmetic”, as former US President Clinton said at the recently concluded Democratic Party Convention.

But another reason for its good mood may well be the US reiteration of policy commitment to an extremely low interest regime for the near to middle term. Mr. Bernanke, Governor of the US Federal Reserve, said the low interest regime will continue even as the US economy continues to recover. What a far cry this is to our own bias against economic growth!

Because, without taking care of both sides of the ledger, a fate, not a good one, awaits us. India’s erstwhile role model, the USSR, now  inhabits the pages of history for trying to put the theory of Communist egalitarianism into ham-handed and repressive practice. Little children call such a game “beggar thy neighbour” without realising they are talking about Communism in practice.

And ironically it was glasnost meaning “openness”, and perestroika meaning “restructuring”, that did it in because it was too little that came too late. The same fate could overtake the UPA II Government when it goes to the polls.

After all, ordinary people hate being told that they need to suffer the pain for a corrupt regime’s incompetence. But with The UPA’s very likely departure in 2014 or earlier, the successor Government can perhaps start setting things to rights.

The public outrage, and that of the Opposition, and even a number of the UPA Government allies, is thoroughly justified. Inflation, the very altar at which the Government has sacrificed growth since 2008 by raising interest rates and controlling both credit and money supply is going to soar as a consequence of this action.

The Government planning and economic systems have let it down in disastrous fashion. There is a great deal of concentration on the expenditure side of the ledger particularly directed at populism, rather than badly needed infrastructure for example, with a cavalier attitude to the income side.

The culprit appears to be the perennial Socialist hangover this Government seems to suffer from. It is influenced by the nearly Communist NAC, several staunch Leftists amongst the Congress Party seniors, other theorists and thinkers, who are all not keen on encouraging business and industry.

This even as the Government, probably a section of it, has announced a slew of FDI

(Foreign Direct Investment) encouraging measures to try and distract the public outrage and deflect some of its hostility.

But all the moves, such as FDI in retail and FDI in the airline business may have come too late in the day to show results before 2014. Besides, the domestic airline industry is awash in red ink and probably too sick to revive in a hurry. And FDI in retail may yet see a roll back due to all kinds of motivated opposition. A weak Government, forever dithering from pillar to post, is hardly capable of convincing anyone about its resolve to see things through.

An embedded hostility to the allegedly fraudulent “India shining” scenario is palpable in policy actions taken by the Government and its regulatory agencies; and consequently business and industry is either at a standstill or in recession.

Even the ever brash and hopeful housing and building sector, a haven for the investment of black money, is looking increasingly beleaguered. Demand has fallen. Inventories have risen. Transactions, as the broking community are fond of saying have become “less”.

Some observers are expecting a crash in the so called property “bubble”. If that happens, because of the Government strangling all growth and confidence, and with the monumental debt incurred by big builders, let alone the little ones, several major banks will also go belly up.

But the Indian Government, typically, does not worry about this kind of thing. Instead it has been busy collecting money hand over fist in a procession of scams one overtaking the other in heft and hue to fill its war chests. All the while promoting scheme after sponsored scheme to give away money to the poor and impoverished with a view to getting re-elected so that the party may continue.

It is true that a Government can always borrow and spend and that is exactly what ours is doing. It can also print more and more money. But since that is the road to bankruptcy there are occasional knee jerk reactions such as sharp increases in the price of diesel and cooking gas that will hit the middle class as well as business and industry. The diesel pump using farmer will be affected too, but he is being looked after by all the give-aways.

Every Government spokesperson piously claims the price hikes are a difficult step taken in the broader national interest. And of course, the most vocal apologists for the Government are reportedly about to be made ministers! But while they are still at it, what they are saying about the outrageous increase in diesel and gas prices, taken in isolation, may well be true.

But the attitude demonstrated is akin to someone eating a five star meal at an expensive eatery and confessing he has no money to pay thereafter. Our coffers are empty because we did not make due cause to fill them. The public cannot be blamed. It is the job of the Government made up of elected representatives to think of such consequences in advance and provide for them.

If over the next few days and months, the rising costs of living are actually assuaged with bold new initiatives in long pending reform, then the economy could become stimulated to grow again.

This, and this alone, will cover the multitude of our sins. Otherwise, in good Communist tradition, most of us, except the functionaries, party bosses, politicos, and the most manipulative amongst us, will have to become a great deal poorer and share in the misery imposed on us by a Government’s lack of vision.

(1,103 words)

15^th September 2012

Gautam Mukherjee

Blasphemy and Dogma

Blasphemy and Dogma

“Too often we enjoy the comfort of opinion without the discomfort of thought.” 
― John F. Kennedy

“Heresy," by the way, simply means "choice." It came to mean "thoughtcrime," implying it was blasphemy to presume to choose your own belief instead of swallowing what the bishops spoonfed you.” 
― Robert M. Price

In former times of apartheid and segregation, it was conveniently believed that the lesser party to the “separate development” was better off for being confined to interact with his own kind. That he had to do so in infrastructure starved of funds was seen as appropriate to his essential “inferiority”.

India gave its own twist to such thinking with its concept of  “untouchability” derived from being entrusted with the cleaning of “night soil”, in order to justify its convenient barbarism. High caste Hindus piously spoke of karmic destiny to explain the great caste divide.

Colonialism and Imperialism similarly justified the subjugation and humiliation of the “natives” by thinking of them as less than fully capable “children” that needed a paternal hand to care for them. That the colonial brand of care, despite Kiplingesque or Churchillian  talk of the “White man’s burden” was anything but even-handed, is indeed the hypocrisy at the heart of that exploitative system.

In the horrific Spanish Inquisition of yore, or in the Taliban dominated bad-lands today, “heresy” or even common or garden “deviance” was, and is, punished by a righteous, retributive and savage death; by fire, beheading, bombing or bullet.

Our Sovereign Democratic Republican Socialist and Secular Government’s understanding of “Secularism” and “Communalism” also suffers from such twisted and selective logic.

Assam, and in a spill-over context, indeed the whole of the North East, suffers from a euphemistically put “ law and order problem”, despite millions of illegal Bangladeshi migrants asserting themselves with mysteriously held arms and ammunition. This is compounded by various secessionist movements, tribal struggles, and foreign fomented terrorism in the region. Be that as it may, the ethnic threat to the local populations cannot be minimised.

That these migrants have been let into the country with the active connivance of our Government over the years in order to use them for convenient vote banks is curiously not emphasised. That this has now reached alarming levels where the interloper now seeks to take over, is again not emphasised.

In Vladimir Putin’s Russia, a girl punk group called Pussy Riot has been jailed and is waiting to be tried, possibly for blasphemy. Their crime: they shouted anti- Putin slogans inside a cathedral Church in Moscow.

It is ironic that Russia, the originator of the Godless Communist Revolution of 1917, suppressor of the Russian Orthodox Church and all other religions as the “opium” of the people, should now be thinking of invoking blasphemy!

Blasphemy, after all, is a near medieval term, beloved today of only the most rigid mullahs of Islam. The Russian leadership seeks to prosecute the rebellious girl band, with solemn attitudes befitting the punishing of some intractable insurgency. But these are three young women eliciting solidarity from the likes of pop diva Madonna. That Pussy Riot in jail refuses to apologise deserves our salute.

The media frenzy over the recent sentencing of the perpetrators of the Naroda-Patiya riots in Gujarat also seems to lack balance. It is nobody’s case that the convicted are not guilty, but even they should be allowed the benefit of their appeals and petitions all the way to the Supreme Court. This particularly if “justice” is the main point of the exercise as opposed to “vengeance”.

Meanwhile, the strenuous attempt to link culpability all the way up to Chief Minister Narendra Modi, of whom the Government at the centre seems to be in mortal fear, should by the same logic hold the Government in Assam and its Chief Minister Tarun Gogoi  squarely responsible. There too we have current unrest, murder, arson, carnage, communal violence, and displaced people in camps, playing out daily on our TV screens.

And, if we are to hark back to the Gujarat riots of 2002 with such fervour, we surely need to reopen the book on the 1984 anti-Sikh riots in Delhi and actually hold our own version of the Nuremberg Trials in that regard too.

It is remarkable that despite nearly 4,000 Sikhs being openly lynched on the streets of New Delhi, and displacement of over 50,000 others, not a single instigator or perpetrator has so far been convicted according to the Human Rights Watch report of 2011.

Also in 2011 Wikileaks Cable Leaks has revealed the US Government assessed the 1984 riots were orchestrated and directed by the Indian National Congress. Even Mr. Rajiv Gandhi’s laconic comment on the Delhi riots was: “when a big tree falls, the earth shakes”.

While democracy entails the cut, thrust, and parry of accusations and counter accusations from the Government and what is gleefully referred to as the “fragmented” Opposition; it cannot be allowed to  result in mayhem and paralysis. But in order to achieve parliamentary dialogue instead of obstructionism, the Government needs to show some good faith.

Endlessly defending its myriad wrongs and the monumental corruption under its supervision is not going to wash in parliament. And, if recent opinion polls are to be believed, nor will it do so at the next general elections. That the Opposition is unable to fully benefit from the woes of the Government calls for some changes in its own gap between rhetoric and reality too.

Indeed all of India’s elected representatives need to update the tired old arguments and shed some of the cant that hovers around the great definitions of Secularism and Communalism. We cannot keep applying different yardsticks to our opponents without affecting the entire credibility of the debate.

Besides, as long as our politicians refuse to treat our national problems as just that, fringe elements do and will continue to exploit the loopholes with impunity. The instigators of sedition, subversion and violence are operating from the shadows, safe in the knowledge that the political discourse will trot out justifications on their behalf. The net loser in all this are the people, who are living in an environment growing steadily less savoury and more unstable.

Both the concepts of dogma and blasphemy imply impatience with, and intolerance of,  alternate points of view. Too many countries have slipped on this banana peel throughout history. An essentially tolerant country like India needs to get back to its roots. But, we won’t do it with increasingly polarised politics that defends the indefensible, and that seeks to bamboozle the people with its own version of the untruth.

(1,098 words)

3^rd September 2012

Gautam Mukherjee

Published as Leader on Edit Page of The Pioneer on 6th September 2012 as "In frenetic discourse, leave space for truth". Also published online at www.dailypioneer.com