Friday, December 25, 2015

नयी घास के नए फर्श पर नए पाँव इठलाएंगे : Phantom pains



वह: आपने लिखना छोड़ दिया, लोगों से मिलना छोड़ दिया, गुज़ार सकेंगे इतनी बेमतलब की ज़िन्दगी?

कवि : गुज़ार सकेंगे क्या, गुज़ार रहा हूँ और भरोसा कीजिये इतनी बेमतलब की भी नहीं है ये ज़िन्दगी!
वह : हमने सुना है कि हर कवि की ज़िन्दगी मैं कोई न कोई लड़की होती है जिसके कारण वह कविता शुरू करता है ..
कवि : या छोड़ देता है ..आपने सुना है या ये आपकी अपनी राय है ..?
वह : आपने जवाब नहीं दिया
कवि : मैंने दे दिया

Heard people talking about phantom pains when they loose a limb. Even though I empathised with their loss but could never bring myself to understand their pain, Now I do having experienced loss.

You believe that the limb is still there & it requires a phenomenal mental adjustment to let go, accept & make peace with what you are at that point. Phantom pain in arms, legs must be unbearable for sure. what about gut & loss of trust, belief? What about loss of capability to love? People can't even understand or see your pain while u grimace in agony at own inability to trust/love anymore..




I thought of you with love today
but that is nothing new
I thought of you yesterday too.
Shall summer's warm brilliant sun bring new light,
And free my anguished mind of its terrible plight?
Will its gentle breezes chase grief's dark clouds away,
And show me a clear path towards a better day?

can hear immortal voice of Mukesh..


.. मैं जानता हूँ कि तू गैर है मगर यूँ ही ...

Time to sleep

Saturday, December 12, 2015

Economics: Coffee, Scarcity, property & relationship


The other day I was having coffee with a new friend, a retired businessman.. I mentioned I had studied economics for many years, especially Austrian economics & remained student.

Like so many people, he said, “I really don't understand economics and always have been confused by it.”

To which I surprised him with, “Of course you understand economics; it is the thought process you use every day to deal with three things: scarcity, property, and relationships.”

His eyes got big and he said, “Whoa! Say that again.”
“OK,” I said, “Everything in human life is organized around how we make decisions about three things: scarcity, property, and relationships.

“First let’s talk about scarcity which you’ve known about all of your life — you notice when something is missing or about to be missing; it is how you decide when it’s time go to the grocery store, do your laundry or whether you should drive your car faster so not to be late for an appointment.

“Every human being is an expert in the decision process of scarcity. It is something we all naturally do whenever we act and choose — which, by the way, we are doing all the time, every day, all day long.”
I smiled, “I could go on and on. You want more?”
“Sure,” he smiled back.

“All humans make action and choice decisions that automatically weigh the following factors. Knowledge: what do we know? Risk and uncertainty: what is our estimate of the risk we can foresee? What do we not know? Time and priority: when do I want or need this? And, how important is this to me right now in relation to other options? Value: what am I willing to give up to have this thing right now?

“This is the personal way you understand economics; it’s the decision process that every human being goes through every time they act and choose, even if it is only for me, alone.
“But there is another important way you already understand economics, which is how we interact with others. That is why I mentioned property and relationships because here is where the decision process I outlined above takes into account other people.

“Economics is also about how we decide how we will think about — and therefore organize — our property and our relationships.”
After a long pause my new friend then said, “Wait a minute. You haven’t talked about money. Even I know that economics is the study of money.”
To which I said, “The study of money and monetary exchange is the most applied use of economic theory. And this is to be expected.
“Why? Because of property.

“You probably already know that money is a medium of exchange. But what are we exchanging? We are exchanging property, your property for my property.
“It is most valuable to think that there are two conversations happening during every monetary — or property — exchange.

“The first conversation is the one I am having with myself; when I give $3 for this fancy cup of coffee I am saying, “I value that coffee more than the $3 in my pocket.”
“The second conversation is the one the café owner is having with himself. He is saying, “I value your $3 more than the coffee I have for sale.”

“Money is the handiest form of property so I don’t have to try to exchange a fish or a chicken for a cup of coffee, for example.”

I continued, “the real use of economics is in the conversation of how we organize ourselves in groups. Do we peacefully respect each other’s property? Do we peacefully cooperate with a shared sense of peaceful-values or is it that fearful-values are forced on us by some Single Dictator, as in a single person, or a Group Dictator, which is otherwise called democracy, by the way.”

At this point my new friend was squirming and said, “So, really economics is based on politics.”
I said, “Actually, it’s the other way around. If you like, I can send to you a great little essay written in 1850 that clarifies this. The writer’s name is Bastiat and he explains that economic architectures precede political architectures.

“In other words, if you look at politics as simply an argument of how we should organize ourselves, then it becomes obvious that it really boils down to how we know, or don’t know, what property is and how we should deal with it as we relate to each other in life and living.
“This is what I was referring to when I said that economics is also about relationships. The connection between economics and politics is how we organize our relationships and whether our ‘shared values’ assume we can have (and want to have) a society based more on peaceful cooperation — or not.”

As all conversations go, it became apparent that it was time to wrap this up, so I said, “Well, there you go. I have been studying this for a long time. If you would like to learn more I can direct you to learn about these things in a step-by-step way.”

To my surprise, he said, “No, let’s continue. This is very interesting. But one thing bothers me. Are you also saying that humans don’t need rules and laws and that our so-called ‘self interests’ are enough to keep us humans interacting in a more peaceful way? The news is too full of the horrors of humanity to swallow that one.”

I replied, “Well, it is true that the media is mostly reporting bad news. And there are definitely places and times throughout the world where the balance was and is greater violence of man against man.
“But it is also true that this exists against a backdrop of a pretty darn peaceful world overall. On any average day, you are more likely to end the day peacefully in bed than being the victim of some violent or unfortunate occurrence.

“There are many, many examples of shared peaceful values that we — the world over — rely on in our daily life, that show this to be true. My favorite is the freeway. Here we move along at speeds that easily can kill us and yet we all — mostly and most of the time — peacefully cooperate.

“But let’s talk next time about whether we need to organize ourselves around an assumption that the only way people will peacefully cooperate is via some agency being given the exclusive use of force or whether there are other ways that we can both have rules, laws, and remedies and — at the same time — a higher order of peace, prosperity, and freedom.

“Because there is a way.”

Conversations: Michael J. McKay

Sunday, November 29, 2015

Internet & the emerging banking crisis

With a $10 billion+ sale on single's day for Alibaba.com & even Flipkart clocking a billion $ sale on mega sale days, which geniuses are building malls? Have no utility beyond movies & restaurants. The day Chinese became the factory of world, including clothing along with digitalisation of western populace, malls were doomed. Who wants to pay inflated prices for brands when poor IP law implementation allows same Chinese manufacturer to churn out clones for 1/5th price to consumers.
If you take the point that public investment in infra follows GDP boom and not vice versa, then it's bad news for all the ghost towns and public infra like airports that China has built up. They will not spur economic growth and unless there is some other form of stimulus that spurs growth then this infrastructure will be sitting there for a long time before it gets utilised. One example that I keep on citing for India is Noida toll road. It started in 2002 ( If i remember correctly) has not turned operationally profitable till date. 
Similar case can be built for Bandra-Worli Sea link. There are simply not enough car commuters to pay fee & thus enabling return on investment for this project.

The problem with public infrastructure is very similar to your car. Its starts to depreciate in value from Day 1. Since all of this infra was built with public money, the loans are not being serviced or there is an increased interest component, which means there's no money for the upkeep of the infra.
Politicians often prefer dams, interstate highways and bullet trains that make the news, critics add, rather than schools, hospitals and smaller projects that may be more economically productive.

India is now pushing high-speed rail between urban centres,Which may have returns but putting 4 lane roads doesn’t do much for villagers. They really need a one-lane road only that can be maintained & livelihood sustained. Economics is really simple. If you have no money and you want to build a house, pretending that you do have money still won't allow you to build a house. That's because you need actual capital to buy material and labor. Pretend money won't work otherwise every third world will get first world infrastructure just by pretending. 

Now you can pretend and fool an external money source but that won't last long because monied people and nations don't get to be rich by being stupid. Look at Argentina. No one lends to them anymore. Now you can look around & see how struggling malls, unsold housing stock & then look at bank balance sheets with roughly 11lac crores as CDR & NPA. This is almost 25% of total lending amount of India's banking system.

Infact the success of ecommerce in china indicates mega malls of unsustainable size might struggle even more in future. malls can only serve a certain radius be it 50km or 100km. ecommerce can serve the whole country from a dozen warehouses in low cost locations but near highways/airports/railways for logistics.

The internet has become a critical element of China’s economic progress in the past five years, accounting for seven per cent of the world’s second largest economy’s gross domestic product (GDP) in 2014, a percentage point higher than the US, state-run Global Times reported, citing a report issued by China Internet Network Information Centre (CNNIC).

China has exceeded the US to become the world’s largest online retail market, it said as the online retail transactions reached 2.79 billion yuan (USD 439 million) in 2014, one of the key economic achievements of China’s Internet development during the 12th Five-Year Plan period (2011-15).

However, according to US journal Statista, US online sales last years accounted to about USD 290 billion.

In 2014, the number of online shoppers climbed to 361 million, representing 55.7 per cent of the nation’s shoppers.

Online shopping represents 20 per cent of all consumer demand, the report said. For the first time mobile phones have become the most commonly-used platform to access the internet, followed by computers. Some 594 million people in China can access to the Internet through mobile phones. In India the same number is around 350 million & almost 65% access through mobile phones.

And when it's pointed out that the total e-commerce $ value in China was just 8.3 per cent in 2013 and projected to be just 12 per cent in 2015, you turn that around to see how US/Indian/Chinese malls are doing bad!! 

Are baba or shall I say Alibaba!! 

Friday, November 20, 2015

If Love is the answer, could you please rephrase the question?

Ever since I have been writing nothing has fascinated me more than human relationships & why not? relationships based on love make for an interesting read even though why love happens itself has been dissected thoroughly by medical sciences. Brain must be most fantastic organ of all.. works 24X7 from the time you are born till you fall in love..

La Rochefoucauld said "True love is like seeing ghosts we all talk about it, but few of us have ever seen one" & at this ripe old age 40, I do concur. Being a behaviour addict, i just see so many of known/unknown people in agony, rarely happy for a longer duration. We are remnants of an age wherein we got into marriage or relationship with not much expectations except for companionship & raising a family together. Times have indeed changed!

I see lot of young women who complaint of not being able to find love but constantly going out with the same man who more often than not, picks them from office/home and tabs too. Gives gifts on birthdays, throws parties but is kept hanging like a cur waiting for something sweet while 'They' are looking for someone to love. Lot of man are no different in their behaviour. 

Jack Nicholson once said, “Almost everybody's happy to be a fool for love."
It's highly doubtful that he had evolutionary psychology on his mind when he made this statement, but nonetheless he tapped into a fundamental human foible: When it comes to dating, mating, and relationships, it can be hard for us to see straight. While we may have few 100 thousand years between our forbearers (primitive men) & us, we continue to exhibit same behaviour with regards to dating,mating & seeking. 
This shows evolution of man.It also means that our sages were indeed truthful & brave to write, mention the trials and tribulation as a society that we went through. they have recorded the 'Yug Dharma' as it changed over the years.Greatest of the warriors & one of the most learned mind 'Pitamaha Bhishma' said the following in 'Shanti parva' .. dialogues between him and Dharmaraj Yudhsthir


न चैषां मैथुनो धर्मो बभूव भरतर्षभ
संकल्पादेवैतेषां अपत्यं उपपद्यते - 37

ततः त्रेतायुगेकाले संस्पर्शात् जायते प्रजान
ह्य भूः मैथुनो धर्मस्तेषां अपि जनाधिप - 38

द्वापरे मैथुनो धर्म प्रजानां भवन्नृपःतथा
कलियुगे राजन द्वन्द्व मापेदिरे जनाः - 39


"In satya yuga, intercourse happened as desire arose in minds of fertile men and women. There were no words for mother, father, sibling etc. In Treta Yuga, when men and women touched each other and welcomed the touch, dharma allowed them to copulate for time-being. (this is stage where concept of "favourite" mate started emerging). IN Dwapara Yuga, Men and women started cohabiting as couples but not as stable and committed pair-bonding couples. In Kali Yuga, the stable pair-bonding (what we refer to as institution of marriage) emerged."


Why is making accurate assessments so fraught with difficulty in todays romantic contexts? From an evolutionary perspective, these biases helped our ancestors achieve reproductive success in a prehistoric environment in which that was difficult to do. In a thinly populated world, there were far fewer mating opportunities in a relatively short lifetime. They were also under great threat from infectious diseases and starvation.

Our memories have stories when there were no "names" for relations. Only relation was that between a fertile man and woman. In fact here have been references to The references of free cohabitation, sibling cohabitation, offering one's "stri (woman)" to friend OR guest" (Kindly note that the word "patni" had not evolved), references towards intercourse with alive and dead animals, intercourse with wife of one's guru, cohabitation with multiple males, temporary cohabitation, contract marriage all these are mentioned in Puranas & is the history of Indic people."You can also add Shiva's Aasakti on Mohini & the chase. Subsequently the birth of Harihara.

I return to the fundamental question, what is love and where are the origins of this word? Did we actually confuse this word with what we call " आशक्ति " or lust ? 

In other words, there's a mismatch between our ancient genes and our modern lives—in our diet, and in the romantic realm. Here are four common biases when it comes to love: See what an award winning psychologist Dr Mehta had to say about man women relationships in modern times...



  1. We pay too much attention to looks. According to research, physical attractiveness in the romantic realm is an advertisement of health and fitness. In the ancient world, infectious diseases were far more prevalent than they are today. Muscular men with chiseled features, and women with an optimal waist-to-hip ratio were advertisements that their offspring stood a greater chance of surviving and reproducing. Studies show that we still have an attentional bias for beauty.
  2. " Women underestimate commitment. Pregnancy and lactation are costly for women, which likely encouraged their preference for mates who demonstrate clear signs of long-term commitment and the provision of resources during pregnancy and breastfeeding. Indeed, research shows that women tend to underestimate the level of commitment on the part of men. After all, it would be more costly for a woman to have sex with a man who will love her and leave her than to underestimate a man's interest and wait until a more committed partner comes along. This may explain why some women may debate for stretches of time whether the number of calls, texts, emails, and dates initiated by a suitor add up to real signs of interest and a possible long-term relationship."
  3. Men overperceive sexual interest. Like their counterparts in the animal kingdom, human males invest less in reproduction and can potentially produce far more offspring in his lifetime than women. Thus it is to their reproductive benefit to have a variety of mating partners, which likely encouraged a keener ability to pick up on signals of interest on the part of women. After all, there's more to lose in underestimating sexual interest and missing out on a sexual opportunity than there is in overestimating sexual interest and losing time pursuing a woman who isn't interested. Research consistently shows that men are biased toward overestimating the degree to which a woman may be interested in him. Perhaps this explains why some guys come on too strong, or don't give up when it seems it's time.
  4. We all get jealous way too easily. The green-eyed monster may not be a flattering human emotion, but has served a useful function over the course of human evolution. In women, jealousy serves to prevent their mates from providing resources for other female rivals. For men, jealousy prevents cuckoldry, i.e., investing in genetically unrelated children. The consequences for both genders would be, evolutionarily speaking, costly. Yet today, both resources and paternity certainty can be more easily accessed, and thus jealous responses can unfortunately misfire." 
Pitamah Bhishma also said that 'Kama' is the जननी (mother) of all 'purushaasrtha'.. Let me go back to the root of it all. The root is 'Sanatan' . the word itself can be broken down to Sat -anant or as some bifurcate it as, Sat + Aa + Tan.The meaning is, 'Pursuit since Sat' . Wherin Sat can be construed as Satyug or Truth. So the continuity of civilization is the 'Dharma'

Between all this, where is love? what were you saying, can you repeat that love thing?

Sunday, November 01, 2015

Viagra, religion of individualism & looming pension crisis

There has been a chorus of economists who blame everything from excessive borrowing to cheap loans to early retirement with generous pensions that triggered the greek debt crisis in the first place to the political system that allowed this to happen. Not many have looked into the causes of low saving rates in western countries i.e. US/EU. There are many Points that one must ponder over..

1. They are all liberal free enterprise systems

2. EU has some form of state ownership & spends considerably more on welfare/Doles & aging population is not earning enough to sustain the spends

3. Political pressure or oversight led to easing of norms to land to unscrupulous & low credit worthy consumers in US.

4. Banks converted this debt into securities and sold them to other banks on bond market

All these no doubt are important but obvious causes.

In case of countries like Greece/Portugal/Spain or later in UK & france, pensions have been a huge drag on state exchequer. So isn't time we look at other datapoint/factors that may have an impact on nations finances..

Its time we start looking at basic unit of economic activity - Family

There is another issue that has not gained the attention it deserved with respect to state finances. All these governments employ an army of bureaucrats to run the system & most of them retire with a lifelong, inflation indexed pension. Greece, citizens were retiring at age 45 with full pensions. Take a case of UK/France, where citizens (govt employees) retire with pension benefits & pass on the benefits to spouses post their death. UK pension shortfall for the month of August 2015 was 358 bn Pounds. Overall shortfall is around 5Tn pounds. 

Now is the tricky part comes with spread of new age religion called 'Individualism' ..

The core tenets of 'religion of individualism' as i see it responsible for wrecking the family system (smallest economic unit) are..

1. Sex for pleasure not for procreation

2. State responsibility to take care of citizens (welfare/doles)

3. Removing ethical/moral restrictions from sex outside marriage

The religion of individualism aka individual rights & femi-nazi movements has brought a situation that..

1. More and more children are being born out of wedlocks

2. High divorce rates

3. late marriages or no marriages


With the looming economic crisis, younger generation is finding it hard to find jobs & they are not leaving parents houses as they can't sustain their lifestyles. when pushed out there is another disturbing trend as this generation has lost the capacity to work hard (like their forebears). You see lot of young women marrying older man in these countries, even a country like Brazil is going through this phenomenon.

older man riding on the temporary testosterone high of viagra aka the blue pill is enjoying his sex life till late and are dumping their older spouse/partners for younger ones. Why do the young women choose to do so? Well, ageing & retired have money (lot of them) & these young women get enrolled in the pension system as beneficiary post the man's death. 

Do you see the implication? The government that was planning of an average 18-20 years of pension duration lands up paying for 40-50 years to the spouse/partner of deceased pensioner. It is wrecking the finances of brazil/UK/France.    

Take the case of India, we have around 3.1Mln central govt employees & another 18 million in state & other PSUs. Its true that majority of them may be in Group C or D category thus low paid but they do get inflation indexed pensions. With increasing life expectancy, state lands up paying pensions for longer. Luckily we have a growing population but unfortunately most are either underemployed or unemployed. 

Unless Prime minister Modi pulls a miracle of getting manufacturing (big time) in India, we are staring at abyss with huge pension bills (recurring) for military personnel or other govt employees. our 55% population (engaged in agriculture) contributes around 12-13% of GDP. It will further come down to 5% in 10 years. Its time we have to shift this large manpower to productive usage. 

What do we do the disease called individualism creeping in our society with similar western issues creeping in urban landscapes. Rising divorces (generally at older ages too), Children abandoning parents in villages or small towns & not taking care of them in old age will raise more demand for pensions or state support.

Government has a tough choice, tackle Viagra fuelled youthfulness & children's apathy towards old parents. India has just taken on roller coster of pension issues. we need reform right now before Viagra finds our retirees.

Saturday, August 22, 2015

Economic freedom and the Zilch value Indians place

Economic freedom as a value and a principle finds very little resonance with the Indian public and intelligentsia. Unfortunately the Indian constitution too doesn’t satisfactorily enshrine and uphold the ideal of economic freedom. It fails to firmly establish this ideal either as a part of the fundamental rights or as a part of directive principles of state policy. Even the politically popular slogans of social justice do not identify economic freedom as a part of social justice. The Supreme Court in it’s recent judgment on the issue of Right To Education (RTE) by placing socio-economic rights of individuals above Art 19(1)(g) [1] further weakened the already shaky constitutional foundations of economic freedom in India. The Congress led United Progressive Alliance (UPA) ruling in Delhi has recently undertaken a series of measures via executive decisions – allowing 51% Foreign Direct Investment (FDI) in multi-brand retail, Aviation, hiking of fuel prices and legislative proposals to increased the cap on FDI in Insurance and Pensions. These measures, though desirable, have been pushed through with very little political clarity by the ruling coalition. These ad-hoc executive decisions have been labelled as reforms solely with the motive to score a PR point with very little political commitment to the principles of what a political party imagines as reforms. It is with this background that we examine the Economic Freedom Of The World : 2012 Annual Report [2] brought out by the CATO institute and specifically focus on the free fall in the levels of economic freedom in India since 2005.
The importance of economic freedom from the point of view of its importance to the sustenance of basic political rights [3] was argued by none other than free-market economist Milton Friedman. However, it must be admitted that the biggest reason for a vast majority of the sympathizers of the market economy coming from the general public, the academic world or the political world to support economic freedom (a feature shared to different degrees by the various mixed economies in the world today) has been the superior ability of Capitalism as an economic system to produce wealth compared to its alternatives. In fact, Milton Friedman himself won most followers to the system of Capitalism by preaching all through his career the superior ability of the system to produce wealth and improve the living standard of the vast majority of the masses.
Recently, there have been attempts by various pro-market organizations in the west to gauge the relationship between economic freedom and quality of life. As it is shown here [4], countries with better economic freedom also perform better than others on a huge number of social prosperity indicators. The ‘Economic Freedom Of The World -Annual Reports’ is an initiative by the CATO Institute in this direction to quantitatively enumerate and establish the advantages of economic freedom. Some of the major underpinnings of economic freedom are – personal choice, voluntary exchanges facilitated by markets, freedom to enter and compete in a market and the protection of persons and their property. The latest CATO report on Economic Freedom in the World considers the following five to be the major contributors to economic freedom:
1. Size of Government
2. Legal System and Property Rights
3. Sound Money
4. Freedom to Trade Internationally
5. Regulation
The very first chapter [5] of the report deals with the framework and the methodology used. Interested readers can read it for a more thorough understanding.
The following extract from the report presents a good snapshot of the global trend in economic freedom.
Economic freedom from around the world: In the chain-linked index, average economic freedom rose from 5.30 (out of 10) in 1980 to 6.88 in 2007. It then fell for two consecutive years, resulting in a score of 6.79 in 2009 but has risen slightly to 6.83 in 2010, the most recent year available. It appears that responses to the economic crisis have reduced economic freedom in the short term and perhaps prosperity over the long term, but the upward movement this year is encouraging.
In this year’s index, Hong Kong retains the highest rating for economic freedom, 8.90 out of 10. The other top 10 nations are: Singapore, 8.69; New Zealand, 8.36; Switzerland, 8.24; Australia, 7.97; Canada, 7.97; Bahrain, 7.94; Mauritius, 7.90; Finland, 7.88; and Chile, 7.84.
The scores of the bottom ten nations in that year’s index were: Venezuela, 4.07; Myanmar, 4.29; Zimbabwe, 4.35; Republic of the Congo, 4.86; Angola, 5.12; Democratic Republic of the Congo, 5.18; Guinea-Bissau, 5.23; Algeria, 5.34; Chad, 5.41; and, tied for 10th worst, Mozambique and Burundi, 5.45.
Another important fact to note in the report is the performance of the United States which has seen a steady drop in its economic freedom ranking in the last decade:
The United States, long considered the standard bearer for economic freedom among large industrial nations, has experienced a substantial decline in economic freedom during the past decade. From 1980 to 2000, the United States was generally rated the third freest economy in the world, ranking behind only Hong Kong and Singapore. After increasing steadily during the period from 1980 to 2000, the chain-linked EFW rating of the United States fell from 8.65 in 2000 to 8.21 in 2005 and 7.70 in 2010. The chain-linked ranking of the United States has fallen precipitously from second in 2000 to eighth in 2005 and 19th in 2010 (unadjusted ranking of 18th).
The rankings and the analysis are based on the data obtained till the year 2010. The India specific findings of the survey shouldn’t come as a surprise to anyone who takes even a basic interest in the nation’s politics and economics; but the broad trend of the numbers from the year 2000 to 2010 can help us understand and reflect upon how the priorities set by the national political leadership have impacted the trajectory of Indian economy. The index rating and the ranks of the nations are available for the years 2000,2005,2009 and 2010, the following table presents the score on a scale of 0-10 and the ranking (within brackets) of India on the chosen parameters at various points in time
Parameter                          2000       2005         2009       2010
Summary Rating(Rank) 6.32 (75) 6.89 (64) 6.47 (82) 6.42 (90)
Size of Government         6.83 (41) 7.42 (38) 6.33 (63) 6.37 (63)
Legal System and Property Rights 5.99 (59) 7.29 (32) 6.48 (50) 6.22 (53)
Sound Money 6.88 (86) 6.84 (91) 6.55 (108) 6.42 (111)
Freedom To Trade Internationally 5.51 (99) 6.35 (84) 6.48 (83) 6.57 (87)
Regulation 6.40 (56) 6.65 (72) 6.59 (76) 6.60 (81)
( Source : ‘The Economic Freedom Of The World – 2012 Annual Report’ Chapter 2, pg no 88 )
Does it really surprise anyone that the size of the government has gone up since 2005 ? On the whole the trend seems to quiet clear and categoric. Between the years 2000 and 2005 all indices of economic freedom improved significantly, as a result the overall rating of India improved from 6.32 to 6.89 and India’s ranking improved by 11 positions. However, it has been downhill since then with the 2010 numbers being as worse as the 2000 numbers. India has fallen to it’s lowest ever rank on the index of economic freedom since the year 1980 (earliest year for which India specific data is available) in the year 2010. With the benefit of hindsight we all know that the Indian economy fared much worse since 2010, hence there is little hope of these numbers having improved since 2010. The decline in scores in the 2005-10 time-frame has been the sharpest on the parameter of ‘size of the government’. MNREGA and other entitlement programs are indeed the flagship ideas of the UPA and not withstanding a major financial meltdown it is highly unlikely Sonia Gandhi would even think about reversing these schemes. But for the marginal improvement on the ‘freedom to trade internationally’ index, ratings of all other indices too have nosedived since 2005.
While on the surface Indian media has recently bombarded our newsprint and television screens with ‘reforms’ there exists no foundational understanding of this term. The impetus for these ‘reforms’ haven’t come from any principled political commitment and have very little to do with any economic thought that firmly believes in their version of ‘reforms’ as an end in itself. Only weeks after the Prime Minister lectured the nation on how money doesn’t grow on trees [6] his own government went on to give 2 Lakh crore worth of hand-out [7] to various other State Electricity Boards (SEBs). The BJP led NDA regime did indeed deliver a robust performance on the issue of economic freedom; but is the BJP of today willing to take credit for that ? Writing in the Economic Times on the issue of reforms, politics and FDI, Shri Yashwant Sinha wrote [8]
Our own impressive record of economic reforms between 1998- 2004 did not help us electorally and we lost all the Lok Sabha seats in Delhi and in other Metros.
Does this mean that the party of reforms and the very individuals who played key roles in formulating those policies are having a re-think on reforms ? Trying to be a poor copy of your opposition is a bad idea even in politics. With the record still firmly on their side it is for the BJP to pro-actively formulate and set the reform agenda for the nation.
Political disarray on economic issues and the status quo perpetuated by the left-liberals feed off each other and are unfortunately in a state of stable equilibrium. While we are reminded by commentators in their columns, editors in their editorials and anchors in the “debates” on how malnutrition in India is worse than Sub-Saharan Afrca; no one ever mentions the fact that Sub-Saharan African nations like Zambia, Uganda, Botswana, Ghana, Kenya, Malawi, Namibia etc rank much above India [9] in terms of economic freedom. Again completely in-line with the expectations, even on the ease of doing business rankings India is ranked at 132nd position, where again many Sub-Saharan African nations and nations ruled by monarchs fare significantly better than India.
Unless the idea of economic freedom arrives on the Indian political scene we might have to go through many more decades where India will take one step forward and two steps backward. It is indeed a long term project. We need a constitutional amendment which would add the following to the list of directive principles of state policy -
State shall work towards enhancing and protecting the economic freedom of it’s citizens.
However, the danger of the Indian Supreme Court placing the directive principle referring to economic inequalities above this ambitious constitutional amendment would still remain.
However much the educated centre-right free-enterprise supporters for Narendra Modi fret & feel dejected but I must tip my hat in appreciation of his political understanding. All these statements, " This is govt of poor & will work for poor.." works well with electorate. Poor (there are plenty of them in India) along with middle class is looking for a sugar daddy to ease their life. electorate is looking for a nanny to take care of their problems, willing to give up the option of free choice.

He is in for a long haul as the way CONgress did for over 6 decades.

Saturday, January 10, 2015

Capitalism, Western universalism & Sanatan ethos

Rejecting the Dialectic of Western Materialism

I would caution very strongly against applying such categories as "Capitalist", "Socialist", "Liberal", or even "Right-wing" and "Left-wing" to anything within the Indian system. Not just because they are foreign, but because the very assumptions from which these classifications derive are completely disjointed from an Indian worldview.

For example, there is a pernicious idea that the traditional Vaishya Dharma, or the relationship of Indian mercantile classes to wealth, is essentially "capitalist." This could not be further from the truth. "Capitalism" is a form of sophistry developed by the apologist Adam Smith to philosophically justify the accumulation of wealth as a natural outcome of Protestant work ethic, in the face of pre-existing memes in Western thought that glorified poverty. Socialism is a response to Capitalism that re-establishes the glorification of poverty without the earlier tone of overt religiosity. This entire back-and-forth proceeds across a playing field whose geography is dictated by the contours of Western Materialism. The precepts of Western Materialism themselves could not be further removed from the way in which Vaishya Dharma regards the concepts of wealth and prosperity.

Indian Vaishya Dharma is nothing at all like Capitalism, because in our view, the accumulation of wealth is itself a task consonant with divinity; there is no sophistry required, and nothing to apologize for. To cast one thing in the mold of the other, is like asking Pt. Bhimsen Joshi to sing Raga Maalkauns in "F sharp minor, allegro moderato". It's meaningless.

It's well known that Hindu civilization produced a nation with a quarter of global GDP share, even as late as the 1750s when Islamist colonialism and plunder had shafted us for a thousand years ( I wonder what the figure would have been in Skanda Gupta's day.) History as written by Abrahamic Materialists will attribute this simply to the fact that India was blessed with natural resources and a convenient location on many trade routes; meanwhile, it will characterize the Indian people themselves as lazy and detached from worldly reality, as opposed to the hard-working Europeans whose enterprising spirit made them colonial masters of the planet.

The truth, of course, is that Indians have always had a civilizational sense of what constitutes a healthy relationship with artha. It is one of the purusharthas, an aim of human existence whose fulfillment enhances an individual's proximity to the supreme. Artha-shastra, or economics, is the science of managing God-given resources, and hence an entirely noble pursuit. The idea of wealth as an abstraction of these resources is a concept sparked by divine inspiration, and wealth itself a manifestation of divinity. Some observers correctly allude to this when they mention that Lakshmi is worshiped in India, but it would be entirely wrong to conclude that such traditions have anything to do with "capitalism."

While this view of artha is what continues to inform many Indian businesspersons and business families as they go about their work today, it is not what defines any discussion of economics at the social or political levels... not even, sadly to say, in India. Those discussions are completely overwhelmed by the Neo-Abrahamic worldview of wealth, wherein an imposed dialectic of "development vs. social justice", "capitalism vs. socialism", "rich vs. poor" underlies any argument made by *both* sides of the debate.

I say "Neo-Abrahamic" here because to give credit where it is due, the original Abrahamics-- the Jews-- have always had a healthier relationship with the concept of wealth, much more like our own albeit with different philosophical grounding. Together with the fact that Jews don't engage in predatory conversion, this trait is a saving grace of their civilization which will make the Hebrews quite possible for Indic civilization to co-exist and even cooperate with, in the long run.

With Christianity, Islamism and Marxism, the very notion of wealth has been twisted into something so vastly different that it is quite incompatible with the way India has traditionally regarded prosperity, and the way in which we need to regard it once more in order to achieve success on our own terms.

Beginning with Christianity, a new dialectic of Western Materialism was imposed upon all social, political and historical narrative. By controlling this underlying dialectic, religious institutions in Christianity and Islam assured their own supremacy over the debate at both ends, and positioned themselves as ultimate arbiters of justice between the opposing camps. Later on, the youngest of the Abrahamic spawn... Marxism... may have done away with "God", but it still held on to this fundamental philosophical mother-lode from which both "Capitalism" and "Socialism" sprang, under the name of "Dialectical Materialism". That's how powerful it is, as a lever for the control of historical narrative... and therefore, of history itself.

So what are the principles of this dialectic, and how are they incompatible with Vaishya Dharma?

1) The Transference of Responsibility:

In the Indian view, karma ensures that ultimately, every individual is responsible for his or her own actions. For this reason, the accumulation of wealth, the pursuit of Vaishya-dharma, the generation of artha are noble pursuits as long as they are conducted as all good work must be; i.e., without falling prey to the egotistical temptations of raaga (craving) or dvesha (repulsion.)

Karma has no place in the neo-Abrahamic worldview; for, if individuals were to be considered ultimately responsible for their own actions, how could any institution claim a privileged position as the authoritative narrator of history (including the authentication of specific "divine interventions")? Also, what need would there be for messiahs, prophets and revelations if individuals were capable of achieving their own salvation?

For this reason, Western Materialism transfers the "responsibility" for sins to the object of raaga/dvesha... wealth itself... from those who succumb to these foibles. Hence, "money is the root of all evil." Hence, Jesus "threw out the money changers from the temple".

In the final analysis, the promise that the power-brokers of Neo-Abrahamism hold out is that of "salvation" by an external "saviour". The Christian Judgment Day, its Muslim equivalent, and the Marxist revolution to bring about a "stateless society" are all manifestations of this empty promise... follow us, and we will bring about change, because there is no way you can hope to save your puny selves. Individual responsibility has at best a limited temporal role (to live a life free of doctrinally-mandated "sins") , and no ultimate role at all. The Transference of Responsibility is therefore fundamental to all Neo-Abrahamic doctrine, and in its economic form, manifests as Western Materialism.

2) The Fetishization of Poverty:

The concept of the "beautiful poor" is something that the Church, the Ulema and the Marxists have always held out to less deprived classes as a romanticized ideal of the human condition. This can be observed in century after century of cultural references from the neo-Abrahmic world, such as in literature or poetry, wherein the poor are invariably romanticized as somehow "noble", "simple", "honest", "good" and otherwise characterized by an idyllic homogeneity.

From the Christian point of view, the "beautiful poor" represent an opportunity for the "haves" to achieve salvation through that most insidious of socio-economic processes: "charity". The rich were told that to go to heaven, they had to give money away to the poor: Jesus even spoke some sage words about how it was easier for a camel to pass through a needle's eye than for a rich man to enter heaven (this has to be one of the worst mixed metaphors in the literature of Western civilization, but anyway.)

Charity, as defined in Neo-Abrahamic doctrine, is a terrible thing for any society. It isn't the same thing as upliftment; in fact, it is the enemy of upliftment. When pursued for its own sake ... as the power-brokers of neo-Abrahamic civilizations have invariably mandated... Charity fosters dependency, and ensures the need for more Charity in turn, generation after generation. The power-brokers of Neo-Abrahamism, be they Church, Mullahs or Socialist Parties, are the only real beneficiaries of Charity. They alone retain the power to grant approval, salvation or absolution to the "haves" who hand over their wealth to the "have-nots". It is through their agency alone that the mechanics of Charity must be implemented.

Everyone from the early Christians to the modern Left has needed a "beautiful poor" as the objectified focus for their programs of "charity". It is integral to all of their schemes that the poor be kept poor for exactly this purpose.

Consider what Aatish Tasseer has said about Arundhati Roy in this regard:

Quote:
" I don’t think she’s a friend of the poor at all. She would like to doom them to a permanent state of picturesque poverty. They are beautiful to her–the poor–beautiful, benign and faceless. And that is exactly how she wants them to stay. Let me say also that it is not the poor who animate her politics. Oh, no! The people who get her into the streets are the new middle classes. This class, still among the most fragile in India, people who have newly emerged from the most dire conditions, are despicable to her. She mocks their clothes; their trouble with English; she hates their ambitions; when India wins the cricket and she sees them celebrating, her skin crawls; she wants, more than anything, to do these people down. And it is her overwhelming hatred of them that allows her to be a friend of movements that are seemingly far apart. The jihadists, the Maoists, the Kashmir movement, the anti-development people…they’re all her friends. Anyone who can prove a credible threat to the future of India is a friend of that woman. I would go so far as to say she has a prurient fascination with the enemies of India. And where do they love her? In Pakistan, and in the faculty rooms of Europe and America. No surprise there.

Also, this business of pretending she’s a lone voice in the wilderness. What rubbish! At least have the good grace to admit that not one thing she says is provocative or new; it is perfectly banal. And we know how well the universities Europe and America reward this bogus cant!"


Because they fetishize poverty, and use Charity as a mechanism to reinforce their own power... the power-brokers of Neo-Abrahamism are fundamentally against upliftment. Of all social classes, they hate the rising middle class the most.

3) The Absolution from Guilt:

The Fetishization of Poverty is one side of the Western Materialist coin, facing the poor; on its other side is the promise of Absolution from Guilt, offered by neo-Abrahamic power brokers to the rich.

By maintaining a "beautiful poor" class, the neo-Abrahamics are able to justify Socialism. By offering Absolution from Guilt, the neo-Abrahamics relieve Capitalists of any qualms they may feel about the accumulation of wealth, and yet maintain a philosophical environment in which people who become wealthy automatically feel guilt that needs to be absolved. Invariably, the process by which the rich are offered Absolution involves the same old scam... some form of Charity... in which neo-Abrahamic power-brokers always play a central and privileged role.

In Vaishya-Dharma a clear distinction is made; it is not money, but raaga/dvesha that is the wellspring of adharma. Wealth itself will not make you evil simply by possessing it. In Western Materialism, wealth itself carries a taint; yet, that taint can be removed by the intercession of neo-Abrahamic institutions on behalf of a doctrinally-mandated "saviour." 

This is what turns Capitalism into essentially a justification for greed... a means to accumulate wealth with as much dvesha as you like, as immorally as you wish... because the Church, Ulema or Party will absolve you of that guilt ultimately. It is this strange, self-perpetuating cycle of guilt and justification that has enabled the West to countenance colonialism, imperialism, slavery, and genocide as acceptable methods of material expansion. In Neo-Abrahamism, there is no need for personal responsibility in your pursuit of artha because, no matter how much suffering you cause to others in acquiring it, you will eventually be absolved by the intercession of an external "saviour." The only caveat is that you must "keep the faith"... i.e., admit the supremacy of the neo-Abrahamic power brokerage concerned.

*****

The entire dialectic of Western Materialism, then, is rooted in philosophical assumptions that have no basis whatsoever in Indic thought. This is why it is not simply meaningless, but dangerous for us to transplant notions of "right", "left", "liberal", "conservative", "socialist" and "capitalist" into considerations of Indian society, politics and economics. If we internalize this nonsense, we are implicitly granting credence to the very streams of thought whose adherents pillaged our prosperity for a thousand years.

A debate premised on Western Materialism is exactly what has spawned the "pro-poor" sophistry that the Indian National Congress government instrumentalizes as a justification for its platform of plunder. Our insistence on buying into the terminology of this debate ultimately condemns us to what is known, with infinite irony, as a "Hindu Rate of Growth".

-Rudradev