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Sunday, May 24, 2009

Let's Get Truly Secular

Upholding secularism was a clarion call in the recent elections. All the non-NDA parties coalesced around this banner pushing the BJP into a corner that it found hard to defend. So given the broad consensus on "secularism", let us get Truly Secular.

True Secularism would mean a consistent "non-denominational" set of laws for all Bharatvasis. Not one set for Hindus, another for Muslims and yet another for Christians. Having a Universal Law that is applied to each citizen regardless of their religious affiliation would be true secularism.

And it is time to separate Faith from State. Faith issues should be devoid of any governmental and political control. For instance the BJP's insistence that the Vande Mataram should be sung in all public schools is unacceptable, and rightly so to non-Hindus. It mentions Goddess Durga and there is subtle reference to her being the "Mother".

As part of being secular the government and politicians should have no say in religious organizations as long as the religious organizations operate within the law and act ethically. There is a hue and cry over Christian organizations flush with cash from foreign sources enticing the desperately poor to embrace Christianity in return for assistance. My heart goes out to the poor, who have no one to turn to and so "sell" their faith for survival. In a secular society people should have the freedom to embrace and practice any religion of their choice provided they are not coerced or forced. One could argue that this "purchasing" of a person's faith is a business deal and one of garnering "market share". And so look at it as a commercial activity and apply laws of commerce. A person willingly "selling" their faith allegiance in return for assistance should be treated as a personal issue. Whether there ought to be anti-conversion laws or not, is a debatable issue. One could consider anti-solicitation laws applicable to this issue. So let’s get secular and debate this issue in court and come to some mutual consensus that is enacted into law. Make this an issue for the courts to decide.

Currently many temple boards have political appointees and the government takes a cut from donations made to a temple. Granted religious organizations should be governed, however this should be done by third party committees consisting of members of their respective congregation. And the same set of rules should be applicable to all religious entities, be it a temple, church, synagogue or mosque.



And there is the issue of monetary assistance being given to poor Muslims who wish to make the journey to Mecca. This is an issue of tax payer money being spent on a religious activity and violates the very tenet of secularism.


No religious artifacts ought to be displayed in Government Offices, unless it is displayed in a personal context in an official's office. i.e. an individual should have the freedom to display articles of their faith at their office or work station.

And so the time has come to be Truly Secular and establish a wall of separation that prevents the intrusion of the Government into Religious and Faith issues. Like wise, specific faith issues should be outside the ambit of the laws. What we need to do is  establish ONE set of laws that govern ALL Bharatvasis regardless of their religious affiliation.

Thursday, October 23, 2008

M. F.Hussain's Paintings

I must admit that I was rather complacent about M.F. Hussain's controversial painting until I received an e-mail with images of his paintings (See Below). I did some googling and came across the site that depicts these and a few other Hussain paintings. 


Bal Thakarey is known for making inflammatory remarks on a number of subjects, and one of his targets is the Muslim community. What Thakeray portrays in his words, Hussain expresses in his paintings. After all a painting speaks a thousand words. To me that puts Hussain and Thakeray in the same box and I hold both of them in equal contempt.


What irked me is that Hussain has scribbled the names of the deities in the paintings leaving no opportunity for a benefit of doubt.


When the Danish cartoons were published, there was mayhem all over the world, there were riots in India (go figure). In Hindustan barring a few assaults on exhibition of Hussain's paintings, and a case against him; that was dismissed by the Supreme Court....Nothing! This speaks for the tolerance of the Indian people.


Granted, the images of these pictures were not published in a newspaper, but here we have a recipient of a Padma Bhushan in 1973, the Padma Vibhushan in 1989, and a person who was nominated to the Rajya Sabha in 1986, producing art that is insulting to Hindus.


In the Supreme Court ruling, "The judges described one of Hussain's controversial paintings as "a work of art," according to the Times of India. "There are many such pictures, paintings, and sculptures, and some of them are in temples also," the court said."


Excuse me, I have not seen a depiction of Durga seemingly having sex with a lion, or a naked Lakshmi with her feet on Ganesha or Saraswati depicted naked anywhere. Yes Hindu deities are depicted topless and there are plenty of sculptures that would be deemed obscene by people. However, they celebrate not denigrate.


Now if the judge/court had said that the paintings are in poor taste, that they are objectionable and offend the Hindu community.....but, we uphold Hussain's right to free speech and expression and we are bound constitutionally to judge him not guilty....I would have accepted the verdict.


And since I am a person who believes in freedom of expression, had he produced paintings that depicted Mohammad or Christ or Mary in compromising positions, I would have given him the benefit of doubt, for after all he is eccentric and one could say a bit insane. But he didn't. This to me is bigotry. Besides these objectionable paintings, he has painted a decapitated Mahatma Gandhi along with Hitler, Marx and Einstein. What is he trying to say here?


In the name of secularism, the "pseudo intellectual" Hindus will rationalize any insult dished out at the Hindu community and uphold a person's right to free speech and expression. That is all very fine and dandy. Widespread destructive agitation is not the answer, at the same time should Hindus just turn the other cheek? What would be a rational response?


In my view Hindus need to express their displeasure with measured responses and by silently protesting any exhibition of his paintings anywhere in the "secular" world. Hindus should make it clear that they are not proud of M.F. Hussain. At every opportunity that presents itself regarding him, prominent Hindustani's should express their displeasure and censure him and point out his bigotry.


Yes, in Hindustan, individuals have a right to free speech and expression, provided it does not incite hatred and violence. This also means that individuals should be prepared to deal with the consequences. In this instance, Hussain has had to leave the country for fear of his life. If he has any semblance of self respect, he should stay away and continue his self imposed exile.


People who hurt the "sentiment" of a community are branded "communalists" in India. Shouldn't Hussain's one-sided views expressed in his paintings be branded communalist as well?


Postscript: Hussain has taken up citizenship of Qatar. The "pseudo intellectuals" are bemoaning this as a great loss for India. Let us not confuse the man and his art. He is a great artist no doubt, but as a man, he has offended the land that made him. Leaving it, whether out of fear or otherwise is appropriate. It is leaving the house he has insulted. If he were to paint Mohammad in bad light in Qatar, they would have his head! Would he dare?



DurgaSaraswati
Lakshmi
Mother India


Mogul King & Brahmin
Einstein, Gandhi, Marx & Hitler
Parvati
Hanuman, Ravana & Sita

Thursday, October 09, 2008

A Doozy of a tale

There is a lesson to be learn't here for India from all of this. Will India learn?

Once upon a time there was a family that lived on a hill. The history of the Amerigo family dates back many generations. Their ancestors braved long and arduous journey and many adversities to arrive at and claim this hill as their very own. The hill they lived on was rich in minerals and the surrounding land was very fertile. The Amerigo family used their good fortunes and innovation to produce all kinds of merchandize consisting of agricultural produce, manufactured goods, minerals etc.

Beyond the Amerigo’s land were a number of Villages. Over the years, healthy trading of goods developed between the Villagers and the Amerigo family. Often times the trade consisted of exchanging items, things like shovels were bartered for apples. This bartering system worked fine until things got complicated. And so it was agreed that the Villagers would buy things from the Amerigo family and pay them with slips of paper and little disks (coins). They called this money and referred to it as currencies. Different Villagers had established their own forms of currencies such as the Pondy, Ponky, Inky, Dinky and Finky. There was also a Pinky, but very few people cared about that. The Pondy was the most dominant currency of them all. To keep things simple, Amerigo family accepted Pondys for the things they sold, and would use Pondys to buy things from the Villagers. This went on for many years, and since the Amerigo family sold more than they bought, they started accumulating more and more Pondys.

The Amerigo family accumulated so many Pondys that they decided to take things easy and buy more from the Villagers. They even stopped making things that they sold and started buying the very same things that they made and sold in the past. Ah, they said, it is cheaper to buy, than to make. Let the Villagers toil and we will reap. The Villagers were only too happy to oblige and over a period of time they started producing more and more of what they used to buy from the Amerigo’s. Soon the Amerigos were buying more than they sold creating an imbalance in trade.

The Amerigos were very good at making weapons and since there was some conflict or the other going on between Villages, they always had the latest and the best weapons to sell. They made sure that they kept this activity alive and well because it brought in a steady stream of money. Besides this activity spawned a host of companies that leveraged the technology that got developed from this defense related activities and the Amerigos felt indestructible. They felt they could innovate themselves out of the imbalance in trade.

By and by, the surplus Pondys that the Amerigo’s accumulated started dipping due to this trade imbalance. Besides, as the Amerigo family grew larger, they needed some way of trading between themselves. Initially they used the Pondys they had, but as that became scarcer, it posed a problem. So one day the Amerigos decided to start printing their own money. They said it was only fair that they have their own money like the Villagers did. They also agreed to back their money with gold like the Villagers did. The deal then was that a specific amount of money was backed by specific quantity of gold. The more gold you had, the more money you could print. They called their money the Doozy. The Doozy? Can’t you think of a better name you might say? Well let me know, but the story must go on. This worked well for the Amerigos, they had a lot of Gold in their land and so they were able to print a lot of Doozys as well.

Eventually, the Amerigo family had so few Pondys that they told the Villagers that they could only pay the Villagers with their Gold backed Doozys. Besides, they said it was only fair that the Villagers accept the Doozy since the Amerigos accepted and still accepted the Pondy. The Amerigo’s had a lot of Gold, so they decided to mine more Gold, keep it in a safe place and print more Doozys.

By and by, the market for weapons started declining and the Amerigos found they had more weapons than there were buyers for. So they thought of another ingenious plan. They labeled some Villagers as bad and evil and one particular Villager; Rusty was made to be the Bad Guy. They put fear into some of the Villagers that were headed by Royalty or Dictators and convinced them they needed protection. And who better to provide it than the Amerigos. And when things quieted down and the demand for weapons diminished, the Amerigos took sides in simmering conflicts to add fuel to the fire. They even engaged in covert operations to provoke conflict where tensions existed. There were always new and improved weapons that made old weapons ineffective and so there was a constant churning of bigger and better weapons. The Bad Guy, Rusty not to be outdone did the same and that resulted in an Arms Race. Some of these weapons were sold, others were not, because they were deemed strategic and would adversely affect the security of the Amerigos if these weapons were to be acquired by Rusty or allies of Rusty from the Villagers that bought them.

And so while the arms race kept a lot of Amerigos employed, the sale of weapons did not offset the opulent lifestyle of the Amerigos. They purchased a lot more from the Villagers than they sold to them and soon there were a lot of Doozys circulating in the Villages. The Amerigos had so much Gold to back the Doozy that it soon dwarfed the Pondy. The Villagers accumulated so many Doozys that they started trading in Doozys amongst themselves. And so the Doozy trade took off like a rocket. The Doozy became the International currency for Trade.

Things went on well for a while until there was less and less gold to be mined. The cost of mining gold exceeded the value of gold itself. Besides storing and guarding all this gold became an expensive proposition. The Amerigos needed Doozys to support their lavish lifestyle and also purchase more goods from the Villagers. So one day, Nukem Amerigo, who was head of the Amerigo family at that time, thought of a great plan. He decided to abandon the Gold Standard and establish other means to acquire Doozys. One was in the form of an IOU to the Villagers. They were told that if you invested in these IOUs called Treasury Bills, they will be paid a handsome interest rate and also the re-payment will be guaranteed. They said that these T-Bills were as good as the Gold Backed Doozy. There were so many Doozys circulating in the Villages, that the Villagers readily agreed. So every once in a while the Amerigos would float an IOU and the Villagers would exchange these IOUs with their Doozys. Another method was an extension of a policy that existed to print more Doozys. Even when the Gold Standard existed, occasionally, the Amerigos needed to print more Doozys, but the gold to back it had not been mined yet. So the Amerigos would write an IOU to their Treasury that controlled the printing of Doozys, with a promise that they would deposit the gold at a future date. And they would keep that promise. But since Nukem did away with the Gold Standard, he came up with another idea. He decided that it was OK to write an IOU to the Treasury once in a while and since this was an IOU, it included an interest component, much like the IOUs that were issued to the Villagers.

And so life went on with IOUs being written to Villagers and occasionally to the Treasury. Whenever the Villagers balked at the number of IOUs being written the Amerigos encouraged them to come invest in Doozyland and even offered some of their assets for sale. Quite a few Villagers did that. Rather than manufacture far away and transport the goods to Doozyland, they set up shop in Doozyland itself.

By and by, the Bad Guy Rusty relented and they met with the Amerigos to smooth each other’ previously ruffled feathers and they agreed to abandon the weapons race. This had a major negative impact on the Amerigos. All of a sudden, there was no need for so many weapons. Besides maintaining these weapons cost money. So the Amerigos thought of another plan. One of the Village Dictators named Sodom, the Amerigos had supported was acting up. He was upset with his neighboring Village, Quiet and wanted to attack them. His beef was that Quiet was secretly dipping into his Village from beneath the ground. Quiet was also an ally of the Amerigos. The Amerigos did not respond to Sodom’s acting up and Sodom interpreted this nonchalance as tacit approval. And so Sodom attacked Quiet. Quiet cried for help and the Amerigos rose to the occasion and thumped Sodom. Quiet was so happy, that they paid the Amerigos handsomely for their help. The Amerigo’s realized that these conflicts are good business. First you sell arms, then you create conflict, then you take sides and finally you have the one you helped pay you. Of course you make sure you help only the ones who are capable of paying.

Time went by and there were no major wars to participate in and this got the Hawks in the Amerigo family worried. Then a major disaster struck. Some renegades, infiltrated the Amerigo estate with stolen planes and crashed them into a few Amerigo buildings. Everyone was aghast and condemned this barbarous act. It was later ascertained that this suicide mission was carried out by a group of terrorists known as the Quacks. However, there was a problem. This attack was by a group of renegades, the Quacks and not by a Village. Besides the Quacks that attacked the Amerigos were hiding out in Argone Village that the Amerigos helped in fighting the Bag Guy Rusty. Furthermore, the Amerigos had given this very group of Quacks, weapons to fight with the Argone Villagers against the Bad Guy Rusty. Nevertheless, the Amerigos went after the Quacks. But this did not result in a war that would use up a lot of weapons. So the Amerigos set about manufacturing another bad guy. Sodom, who they thumped before was frequently thumbing his nose at the Amerigos. He even threatened to kill the Amerigo head at one time. The Amerigos seized this opportunity; they claimed Sodom had amassed a lot of weapons, that he was a friend of the Quacks and needed to be taught a lesson. And Sodom’s village was rich and once they liberated the Villagers from their evil dictator, they would only be too happy to pay the Amerigos back. So they unleashed a rain of bombs on Sodom’s palaces, his bases and his weapon installations. After the rain of bombs, they commenced ground operations; they neutralized Sodom’s forces, went after him and captured him. Butch Amerigo, the head of the Amerigo family at that time, proclaimed that the Mission as Accomplished and that Sodom would be tried for his bad deeds. Unfortunately, for Butch, things didn’t go as planned. Removing Sodom opened a can of worms, two street gangs – the Sheets and the Sooners, of Sodom’s Village; started fighting amongst themselves. This fight had been going on for over a thousand five hundred years, ever since the death of Marmalade, who both proclaimed as their Messiah, and as numero Uno. But they could never agree on who was Numero Dos. This thousand five hundred year conflict was “put on hold” forcibly by Sodom. With him out of the way, all hell broke loose. Meanwhile, a number of Quacks being chased in Argone Village decide to join in the melee and the fighting escalated. Unfortunately, the Amerigos were caught in the crossfire and having stuck their feet in there, tried to bring some sense to the situation. Much as they tried, this conflict went on and on and on and some claim that having started more than a thousand five hundred years ago, it is quite possible that it will go on for another hundred years or so.

Anyway, to get back to our Doozy story, the costs of fighting Sodom and trying to bring about a peaceful resolution to the Sheets-Sooner conflict cost the Amerigos a lot of lives and money. This was more than anyone bargained for. To fund the war, Amerigo issued more and more IOUs. Villagers who were flush with Doozys exchanged their Doozys for these IOUs.

Meanwhile, the Amerigo family was hurting as well. Johnny “Come Lately” Amerigo pointed out to Butch Amerigo that he better do something for his family as well. Many were in dire need of Doozys, jobs were getting scarcer and scarcer. The Amerigo dream of a white picket fence and a chicken in every pot was fast receding and Johnny suggested that they look into financing the Dream. Butch thought it was a great idea. Just about every idea that was proposed to Butch was proclaimed a good idea. So he authorized a number of IOUs to be given to the Treasury; some money for the war, some for the other good ideas that were presented to him and one for money that was loaned to Johnny to fund the Amerigo Dream. Johnny in turn accepted responsibility for the Big IOU written on his behalf with the understanding that we would loan money to the family members who would buy houses. The families wrote Johnny a lot of Lil IOUs, with the understanding that they would pay Johnny a slightly higher interest than Johnny had to pay the Treasury and eventually return all the money. Johnny would keep the difference as Management Fees and when things improved, the family members would pay Johnny back the principal and Johnny would pay the Treasury. And so Johnny went about loaning money right and left at a slightly higher interest rate and collecting a lot of Lil IOUs. At times he even loaned the money at a lower interest rate with the stipulation that the unpaid interest would be added to the principal. What has been termed sub-prime interest is a “Pay Less Now and Owe More Later” scheme. There was another catch too. You paid less now and then the interest rate increased after two or three years and one landed up paying more on “ owe more” later!

This resulted in a housing boom. Things were hunky dory for a while. The housing industry employed a lot of people. Demand was up, house prices were up, and loans were being granted to just about anyone who asked for one. Didn’t have a job? No problemo. Bad credit history? No problemo. No down payment? No problemo. The loan was made out to be more than the value of the house and the excess money was retained by the lender as down payment.

But the post-Sodom conflict kept going and going and going and the costs kept mounting and mounting and mounting. Meanwhile Johnny who had taken responsibility for the Big IOU to the Treasury, decided to make a quick buck, he met with some Villagers with a lot of money and convinced them to buy a lot of the Lil IOUs. His clinching point was that some these Lil IOUs paid more interest than the Treasury IOUs and therefore more attractive. Other IOUs – “The Pay Less Now – Owe More Later” ones he argued grew fatter with the passage of time and gave an even bigger return. Technically, Johnny should have returned the money he received back to the Treasury to pay down the Big IOU, but he decided to keep some for himself and loan some of the money he received to more of the Amerigo family. And so he accepted more Lil IOUs and as before he bunched them up and sold bundled lil IOUs to more Villagers.

Unfortunately, things continued to get rough and the Amerigo families, who borrowed from Johnny, ran out of Doozys and stopped paying the interest on their home loans. Which meant the Villagers who bought the IOUs stopped receiving interest as well. In the meantime Johnny having sold bunched up IOUs a couple of times, not only ran out of money to loan, he also lost track of how many times he re-loaned money he received for selling bunched up lil-IOUs. With people defaulting right and left, Johnny cried “Uncle” and said he can no longer make good the promise to payback the Big IOU he took responsibility for.

And so the Treasury got stiffed and so did the Villagers that dealt with Johnny. Besides this put the Treasury in a real pickle. The Treasury still has to pay the Villagers that received the Big IOU that Johnny was responsible for. And there are all those Villagers who bought those bunched up lil IOUs, that Johnny sold them.

The Treasury was faced with a double jeopardy if it were to make good the IOUs Johnny handed out as well. That would mean paying for the same loan more than once. Or the Treasury could say, Johnny’s problem is not our problem. That is Johnny’s problem. Meanwhile, the Amerigo family started hurting more because they were addicted to the “buy now, pay later” lifestyle. And with Johnny having run out of money to lend, their source of money to “buy now” dried up. So the Treasury could either give Johnny more money with strict instructions to lend to only those families that are financially responsible, and who can pay back the loan, or find another Johnny or Jane.

The Amerigo family decided to do a little of both. Not paying some of Johnny’s creditors would hurt the future sales of T-Bills. The Villagers would interpret Johnny as an intermediary, a shadow that the Treasury created to absolve itself of any guarantee. After all Johnny was a trusted member of the family and despite the fact that he took a cut, he did do what the family asked him to do. So the Amerigos wrote the Treasury another BIG IOU, to bail Johnny out and put some more money into lenders hands to lend to members of the family who had the capability to pay back.

This solved only part of the problem. There were a lot of members of the families who lost their jobs because the Amerigo family decided it was cheaper to buy than to make. These families had no source of income and could not qualify for any loans under the new guidelines.

Some in the Amerigo family believed that in helping the families that have assets will result in these “asset rich” families creating new jobs. These new jobs in turn will help the families with little or no assets. Others in the Amerigo family believed that they should take money from the “asset rich” family and give it to the families with little or no assets. Both sides believed that bringing jobs back to Doozyland is the answer.

The discussion on how to bring jobs back to Doozyland goes on, while the number of unemployed members of the Amerigo family keeps growing and growing and growing.

Some say that this too will pass and that there will be a happy time ahead. Some feel that things will get a lot worse before things will get better.

Yes there are Happy Times ahead and that will be addressed in Part II of the story…..stay tuned.

But meanwhile, the moral of this story is that there are many issues that the Amerigo family has to wrestle with:

  • How long can you get by, by borrowing? You can, as long as you earn enough to pay back the loan and have some money left over to pay for other essential items.
  • Will a point be reached when the Amerigo family has borrowed more than they can afford to pay off? Every year the interest component of the Amerigo family increases leaving less and less to be spent on essentials.
  • How long can the Amerigo’s keep buying because it is Cheaper to Buy - than to Make? The answer the “experts” suggest is that the Amerigo’s are an innovative lot and that they are a good at providing the Next New, New Thing. The Amerigos always come up with something new that none of the Villages produce and that will provide the new jobs. Well, as it turns out the Amerigos invent some nifty products. But the manufacturing of those nifty products is done in far flung Villages where it is cheaper to manufacture.
    Can the Amerigos continue to rely on innovation to provide abundant jobs?
  • Well some pundits decry the education system saying it is not producing enough qualified people to fuel innovation. Some Villages are better at that and there are many who wish to come to Doozyland to work on the Innovation Train. The pundits claim that if Amerigo produced more qualified people then that would mean less reliance on Villagers. But what about the “Joe-Six-Pack”, who is not interested in books. He is interested in using his brawn instead of his brains. It appears there are a lot of “Joe-Six-Packs” out there and some in the Amerigo family identify with them. Wink. Wink.
  • How long will Villagers accept the Doozy as payment for their goods? This is a Catch-22 situation. The Amerigo family is a big consumer and as long as that is the case, sellers don’t mind accepting Doozys. Besides lots of Villagers have a stash of Doozy’s and if the Doozy Trade collapse, so will the value of the Doozy. Everyone looses. So the Villagers prop up the Doozy so that it doesn’t wipe away the value of their Doozy holdings.

Thursday, May 29, 2008

BJP Wins Big In Karnataka

For a party that had just two members in 1985, the BJP has emerged just three short of forming a government in Karnataka. The BJP won four seats in 1989, 40 in 1994, 44 in 1999, 79 in 2004 and 110 in the latest election.

The JD (S) that betrayed the BJP was swept away on its path to oblivion with just 28 seats. The JD (S) is lead by a bunch of thugs and disreputable people which includes Deva Gowda, who managed to become India’s PM for a few years and his two sons, Revanna who is a goonda and Kumaraswamy, who is OK, but looks the other way regarding his father’s and brother’s activities and tactics. The Indian National Congress (INC) fared better than the previous election winning 80 seats as opposed to 65 previously. The Communist Party did not win a single seat! Karnatakan’s are smart!

What we see here is a consolidation towards the two National parties, with support for the regional party JD (S) shrinking. The BJP needs three independents to obtain the 113 members to form the government. There are six independent candidates up for grabs; the King makers in this election. If the INC and JD (S) join hands again and get five independents to support them, we could see a throw back to the original coalition that took place after the last election. It would be a sad state of affairs if that were to happen. The JD (S) lacks character and is willing to prostitute itself. The independents could be bought. The question then is whether the INC will pimp itself to power just to thwart BJP’s aspiration.

Someone mentioned that yesterday Dev Gowda admitted defeat and is willing to sit in the opposition and today he is sending feelers to the INC to join hands to form a government. That is Dev Gowda for you. If he didn’t flip flop or morph in pursuit of power, it would be out of character for him.

The phenomenal rise of the BJP can be attributed to their focus on progress, anti-terrorism, tailoring their messages to the issues facing each constituency and their phenomenal volunteer organization. The recent bomb blasts in Jaipur, Hubli and the arrest of a terrorist suspect in Belgaum, helped them. And they gained mileage by blaming the UPA for the 7+% inflation rate the country is experiencing.

The INC on the other hand, stuck to its age old tactics of divisive politics under the garb of secularism by pandering to the Muslims and minorities, promising color TVs to the people with Below Poverty Line (BPL) cards, plying people with liquor prior to the elections and claiming to be the benefactor of the poor. Karnataka is a prosperous State, with natural resources (iron ore, manganese), rich soil, thriving horticulture (cashew, coconuts, tea, coffee, aracanut, too much sugarcane), and industry. Except for a small region in the Northeast, you don’t see abject poverty in Karnataka. And if you do, chances are they are migrants from another state. Jobs is foremost in people's minds, especially with the youth. A newspaper columnist in the Hindu, which typically leans towards the Congress wrote, "a dysfunctional, unexciting, unexacting, non-congenial working environment" was one of the factors that led to INC’s inability to perform and gain majority. Karnataka used to be a stronghold for the INC. The older generation voted, and continues to vote for the INC. The younger generation is not enamoured by the Nehru/Indira Gandhi legacy. Rahul Gandhi is seen more as a celebrity mascot in the South, than a serious political figure. The aura is gone the lustre has faded. While there always will be people who expect and want handouts, what people really want is performance not promises.

Wednesday, May 14, 2008

Cow Power - Milk, Methane, Manure, Medicines & More


Gobar (Cow dung) Gas is not new to India. It was pioneered here in the 70's and adopted by individual families that owned cows mostly in Rural India. My Aunty who lived in the heart of Mangaluru had one since she had a pair of cows in her cowshed. The cows provided her enough milk for the household and her gobar gas plant produced enough gas to do all her cooking. Subsequently it no longer became economical to rear cows in the heart of the town. The gas plant now unused is still there.

All of a sudden the West has discovered "Gobar Gas" - see related Links below (1, 2), and it is taking off in a big way. A friend of mine would say that anything successful on a small scale becomes an attractive business proposition if it scales. Large utility companies like PG&E (3) in the US are entering this field and are planning to produce up to 3 billion ft3 of methane per year, enough to produce electricity for about 50,000 homes in central and northern California. Getting rid of cow dung used to be a problem for the dairy industry in the US, now they are realizing there is money to be made from the sludge – wealth from waste!

The Indian Diary Industry claims that India overtook the US in 1998 to become the world's #1 Milk producer (4 & 5). Since then the top two producers of milk has been either India or the US, with China being #3. Cow dung is not wasted in India. It is used as a fertilizer and as a cooking fuel. Other uses are for flooring and wall "plastering" of rural huts, and I've seen it being used as as a disinfectant for cleaning floors many years ago in my grandmother's house. Now it sells for upwards of Rs. 300 per tonne. Unlike the US there are competing uses for cow dung in India.

Besides milk and methane, another aspect overlooked and ignored by India, in its race to modernize is the fact that cows are the world's most efficient "mulching" machines! You feed them vegetable and organic waste and in about 24 hrs, you have fully processed rich fertilizer. It was Swami Chinmayanada who noted that there is an excellent way to deal with old cows and oxen and that is to let them graze in corrals, where they would trample/feed on organic waste and produce valuable manure.

Believe it or not people drink diluted cow urine for its medicinal effect. Cow urine and cow dung are used in some Ayurvedic preparations. Note this must come from cows of Indian breed only.

Cow urine mixed with other natural ingredients makes for an effective pesticide. (6)

And finally, for beef lovers, it turns out the best beef comes from retired bulls at least sixteen years of age! (7)

And so here we have in the land of the "sacred cow" a gem of an idea, which was known to the illiterate and enlightened villager. Educated agriculturists ignorant of "nature's ways" have paid no heed to this "natural gift". And to quote my friend again...it is all a matter of scaling this "natural gift" to make it a viable business venture that would serve a larger section of India's population.

Related Links:
1. http://www.theregister.co.uk/2008/03/05/bovine_biogas_plant/
2. http://postcarboncities.net/node/444
3. http://www.eere.energy.gov/state_energy_program/project_brief_detail.cfm/pb_id=1167
4. http://www.indiadairy.com/ind_world_number_one_milk_producer.html
5. http://www.chinadaily.com.cn/bizchina/2007-07/31/content_6005196.htm
6. http://www.thehindubusinessline.com/2003/11/21/stories/2003112102650100.htm
7. http://www.time.com/time/nation/article/0,8599,1691115,00.html

Tuesday, May 06, 2008

India's Misguided Moon Mission

India has an excellent Space program. The recent Polar Satellite Launch Vehicle (PSLV-C9) that fired 10 satellites into orbit successfully, is a testimony to that. The launch included six CubeSats (www.cubesat.org) from the University of Toronto. So are some of the other achievements such as missiles that carry warheads and interceptor missiles. Programs that support defense, provide weather information, mapping data, telecommunications etc. are critical and their importance to ground operations can be articulated.
  
However, with regards to the Moon Mission – Chandrayaan-1, it is not clear what benefit Indian citizens will derive from sending payloads to the moon, which includes a lunar orbiter. If this is a commercial venture with the costs recovered from sending six of the eleven payloads, paid for by “foreign” customers, (not if they are CubeSats) then one could justify this venture based on a return on investment (ROI) basis.Else, it would only serve to provide the ISRO scientists a self-serving interesting project, which boosts their ego and portrays the space prowess of India. Which wouldn’t be a bad thing at all, if we didn’t have other uses for this investment that serve the 200 plus million people who live under abject poverty, or provided some benefit for the other 800 million citizens of India, besides bragging rights, that India has joined the elite lunar club. Besides, the Moon Mission, India has a manned space mission planned which would make India the fourth nation to do so, along with Russia, USA and China. Again this begs the question, what is the ROI?

On the other hand, there are indeed challenging projects that would benefit the entire country. One such project is distance learning. Education in rural India has a lot to be desired and using satellite technology to enhance the education system would pay rich long-term dividends. The challenge is to support India’s multi-lingual environment. If you look at India’s currency, there are fifteen languages represented* plus English. If we were to take just fifteen languages (minus Nepali), we would probably need upwards of 150 channels to serve pre-school thru standard ten. Add to this other regional languages such as Bojpuri, Sindhi, Marwari, Tulu etc. and the number of languages would exceed twenty. There are significant lapses in the quality of education particularly in rural India. Another factor India is confronted with is the medium of instruction. Neglecting English puts the student at a disadvantage.

Neglecting the regional language has a detrimental effect in preserving ourcultural diversity. The answer is a multi-lingual medium of instructionswhere the liberal arts subjects are taught in the regional language, and thescience subjects in English. In addition there is need for adult education and dissemination of information pertinent to agriculture, which is localized for a particular demographic and environmental conditions.

Assuming satellite based solution is the answer, this would present outscientists at ISRO a truly challenging project with a very definite andmeasurable ROI, that would do India a great service and something to beextremely proud of.

* The languages in order of their appearance are: Assamese, Bengali,Gujarati, Kannada, Kashmiri, Konkani, Malayalam, Marathi, Nepali, Oriya,Punjabi, Sanskrit, Tamil, Telegu and Urdu.


Wednesday, March 26, 2008

Alleviating “Visual Poverty”


“Visual Poverty”, is something we see everyday in India, it is “in your face”, and like a nagging ache, we are de-sensitized to it, to the point, these people are transparent to us and they have been intellectualized to “not exist”.

Urban Poverty is concentrated in slums and spills over into the city streets. Rural “Visual Poverty” exists on the periphery of India’s highways. Travel around the country and you see people living in tents in rural areas, with no water and sanitation facilities. Rural “Visual Poverty” is dispersed. At the very least, if what we see can be addressed, we would make significant progress. This does not address the plight of the millions who live below the Poverty Line in remote Rural India. That is a different problem all together and would require a different set of solutions.

In Urban India, the most obvious and the biggest issue facing the poor is housing & sanitation, even if it means a cot in a hall and a cupboard for the working poor, who sleep on the street, for there is no sheltered place or spot they can rent. The solution for Urban India, is a program that provides a “Sheltered Place for Every Budget”. This could be low-income flats (owned or rented), hostels, dormitories, and halls etc.

Solution for Alleviating Rural “Visual” Poverty:

In Rural India, a number of these “tent sites” are associated with infrastructure projects. These people “camp in tents” all year round. In the developed world people go camping to unwind. While "pucca" housing is the desired end result, why not make it a better experience for these poor campers? Providing camp-site like facilities with very basic amenities such as access to water, fuel and food essentials would go a long way to improve their Quality of Life. “Camp Sites” can be built as part of the infrastructure projects. If corruption were eradicated, there would be money for this. Alternatively, the cost of providing these amenities should be tacked onto the cost of the project as a separate item that is common to all bidders. Depending upon the duration of the project additional facilities like on-site schooling, and electricity should be looked into as well. The issue here is addressing the plight of the workers who build these facilities that will be subsequently enjoyed by many, for many years to come.

Solution for Alleviating Urban “Visual” Poverty:

In Urban India the Slum Redevelopment Program is geared to provide owned flats for slum dwellers. But that only solves part of the problem. The people living in the streets need to be accommodated. The best approach is Public-Private-Partnerships where individuals or corporations are given tax incentives to build “rent controlled” facilities that provide a Shelter for every Budget. These incentives could include Tax credits for Income and Capital gains invested in such ventures. The income derived from the rent is tax-free as well and the land could be leased. This program has to be instituted with strict compliance and transparency to prevent graft and misappropriation.

Building these facilities is one aspect of the solution. Providing adequate utilities, such as electricity, water etc. must be addressed as well. Capacity planning in India is dismal. While additional capacity has to be planned and built to address the supply side, demand side has to be addressed as well. A steep usage based pricing scheme along with energy efficient lighting/appliances, solar power, water conservation programs, and curtailing the wastage of these essential resources is called for. Socialism means everyone has to be served, the poor, the middle class and the rich. For little to nothing you get the basic minimum. By paying more, you get more. There is no reason why the first KW of electricity and the first 1000 litres of water per month are free for every household, rich or poor, with the price increasing with every additional level of consumption. People need to start thinking how often they will wash their cars, what kind of plants will they plant to reduce the consumption of water, and will they leave the tap running while they brush their teeth etc. With the current chronic shortage of electricity and water, it becomes a zero sum situation. Some will have to give up in order others can receive.

First let’s fix what we see:

Visual Poverty needs to be addressed on a “War Footing”. It can and will be solved. The question is how fast? We have to get away from the mindset that this has to be addressed by the government. There is a cost in providing these solutions and the same time serving the poor is a viable business proposition as well. There is money to be made in serving the bottom of the pyramid. By legitimizing this effort and adopting a build, operate model, the poor could be served.

Sunday, January 06, 2008

On Brahminism Vis a Vis Baniyaism

India is very fortunate that it has a number of complimentary attributes and talents that hold it together and enable progress despite the numerous forces – corruption, bureaucracy, politics, casteism, communalism etc. that are at odds with progress.

At the risk of stereotyping, in the North you have the "can do" attitude and Mechanical Skills of the Punjabis and Sardars. In the East you have the cultural and intellectual aspects of Bengal. The Bengalis do not have a lock on culture and intellect. The latter led them to embrace communism, who in turn have effectively neutralized the region that gave India Rabindranath Tagore and Satyajit Ray. In the West you have the business talents of the Gujaratis and the Marwaris. The Marathas and the Peshawars played a prominent military role. And in the South you have the brain power attributed to the "Southies". People jokingly refer to the North as "muscle" and the South as "brains". West as "business", and as far as the East is concerned, today....the less said about it the better.

All things considered, the two dominant forces that have played a major role in India’s economic boom can be attributed to the convergence of Brahminism and Banyaism (for lack of a better terms).

The recent appointment of Pandit to head up the Citigroup, is an instance of the power of this convergence.

Despite the fact that India was invaded, oppressed, plundered and dominated by external forces, the country has survived and bounced back.

All the precious stones and gold taken from India were just material things. The real jewels, India’s DNA remained unscathed in Indian genes.

If we looked at old India it was dominated by the Baniya’s, by the likes of the Birla’s, Ambani’s. The Tata’s were the exception. The Brahmins for the most part were the "salaried" folks who rose up the management ranks to run companies, often owned by the Baniya’s.

In the past, there was a clear delineation between the attributes/characteristics of Brahmins and Baniyas and they can be described as follows:

................Brahminism...................................Banyaism

Oriented towards intellectual pursuits......Oriented towards business pursuits
Focus on acquiring Knowledge...............Focus on acquiring Money
Service oriented....................................Entrepreneurial/Business oriented
Avoids Risk Taking................................Risk Taker
Asks Why?..........................................Asks Why Not?
Socialist...............................................Capitalist
Idealist.................................................Pragmatist
Pursues Perfection................................Pursues Excellence
Tendency to Preserve............................Proclivity to Create
Self Righteous......................................End justifies the means
Principled.............................................Result Oriented
Goal of Industry is Output......................Industry is a tool for making money
Primary Goddess: Saraswati..................Primary Goddess: Lakshmi
Performs Saraswati Puja.......................Performs Lakshmi Puja
Controlled consumption.........................Conspicuous consumption
Thrifty..................................................Kanjoos
Iconoclastic..........................................Rustic
Think before doing.................................Just get it done
Cynical Attitude.....................................Can Do Attitude
Aversion to Dandha................................Aversion to Naukri
Doesn’t like to work with hands...............Doesn’t mind getting hands dirty
Reserved...............................................Outgoing

What we are seeing now is a convergence of these attributes – Brahmins are acquiring Baniya attributes and likewise Baniyas are acquiring Brahmin attributes. The new generation Baniyas, are highly educated and extending the wealth acquired by their forefathers. The Brahmins have branched out as entrepreneurs and acquiring new wealth. The DNA of these attributes are embedded in our genes from eons ago.

The embedded philosophy of India/Bharat is Sanatana Dharma, which far outdates all of the major "religions" of the world. The term Hindu came from the Persians referring to the inhabitants of this land as inhabitants by the Sindhu River, and hence the name Hindustan. There are similarities between Judaism and Hinduism. There is a possibility that Santana Dharma predates Judaism also.

After Buddha, and Ashoka, the pursuit of spirituality superceded the pursuit of material wealth. Brahminism dominated over Baniyaism. The effect of this domination is seen to this day in the form of casteism. India’s downward slide from the hey days of Ashoka, was due to the feudal Kings, namely the Kshatriyas. This enabled the Moghuls and subsequently the Brits and the Portugese to exploit and dominate India. Both Brahminism and Baniyaism were side lined by the Moghuls and the British. Post Independence, these genes were constrained under Nehru and Indira Gandhi. Brahminism was promoted, Banyaism was controlled.

If India is to learn from history, people should note that the Politician is the modern day Kshatriya and there are more bad ones than good ones. Uplevel politics and the effects will be felt in the bureaucracy and business as well.

On the upside, liberalization unleashed the convergence of these genes and attributes and they now form an incendiary mix that is emerging as a world dominant force both in India and in the Indian Diaspora across the world.

Saturday, December 08, 2007

On Hindutva, Moditva and Gujarat

Martha Nussbaum's views published in Tehelka(1) “The IIT mindset feeds into the fascist nature of the Right”, as well as Amartya Sen in his book, “The Argumentative Indian” have pointed out the disturbing aspects of the Hindutva movement. It is unfortunate that what was started as a movement to take Hinduism to Hindus worldwide has taken a very confrontational and political slant with support from the BJP. It was started as an activity of the Vishwa Hindu Parishad (VHP). The VHP traces its roots to the Chinmaya ashram in Powai. The VHP was co-founded by Swami Chinmayananda(2). However, the original intent got hijacked and it took on another life altogether as a reaction to the increasing tension between the Hindu-Muslim communities. When that happened Swami Chinmayananda distanced himself from this movement. Another factor that fueled Hindutva was the conversion activities of Christian Missionaries in tribal and rural areas.

There were Hindu-Muslim riots that date as early as the 1930’s. The Hindu/Muslim conflict till the 1980’s used to be contained in the “underclass”. In Mumbai, it used to be between the Muslim underclass and the Shiva Sena dominated Hindu underclass . We all were of the opinion in South Mumbai that there was "cachra" in both communities and that the conflict was contained within the “underclass’. In the sixties I used to visit Mangalore and my cousins would mention how the Muslims are multiplying profusely and that politicians were responsible for inciting frequent riots. In the mid-70’s I used to tell my IIT buddies who dated Sophia girls to visit the Haji Ali mosque at sunset time. When my father found that out he admonished me and said it was a dangerous thing to do. He had a prejudiced view of the Muslim underclass. On the other hand, he trusted his life to a Muslim friend when he was in Calcutta during the riots after Independence. My father also used to criticize the conversion activities of the missionaries and I would respond that at least they are helping the disenfranchised, who were being ignored by the mainstream.

The Congress Party had a lot to do with deepening this divide, by their constant pandering to the Muslim community for their votes, which goes on to this day. That coupled with the regressive influence of the Imams, underclass Muslims became more and more conservative and to some extent are responsible for deepening the divide.

This Hindu/Muslim animosity brewing in India for centuries has reached a flashing point. Unfortunately, there is now an emergence of Hindu/Christian animosity as well because of the Missionary activity. A number of the "underclass" Hindus and Muslims have risen to the middleclass and this rift has accompanied them. The Babri Masjid incident(3) and Gujarat riots(4) have only made things worse. The Congress Party holds the BJP accountable for this incident. They accuse the Modi government of looking the other way in Gujarat during the first few days of the riot. Incidentally, when Indira Gandhi was shot in 1984, the Congress looked the other way while over two thousand Sikhs were killed(5)
. There are skeletons in every political party's closet.

These days, the perception is that the Muslims incite most of the riots. For instance, they round up or buy cows for slaughter. The Bajrang Dal, which is a youth wing of the RSS, intervenes when they see this. The confrontation takes an ugly turn and riots result in property being damaged and lives being lost. There was violence in some cities when the Muslims protested against the “Mohammad Cartoons” (6)
, the hanging of Saddam Hussein. The protest against Taslima Nasreen sparked a major incident in Calcutta. Muslims raise hew and cry when their sentiments are hurt, but at the same time they fail to respect the cow, which rightly or wrongly hurts the sentiment of Hindus(7). At the risk of digressing, I was thinking the other day, that the cow is the world’s best and most efficient composter. You feed it vegetable leftovers and grass and twenty-four hours later out comes manure and fuel. Why can’t we look at an old cow as a resource, instead of a liability?

Muslims are treated differently and in some cases they get preferential treatment. For instance, non-tax paying Muslims are given an airfare subsidy to make the Haj pilgrimage. The claim is that the subsidy is gone, but subsidized fares are provided by AIR INDIA. Also Urdu medium schools are given assistance by the Government, much to their detriment(8)
. Many of these schools are sub-standard and raising a generation of Muslim children that are ill equipped for the current environment.

And then Hindutva, took on an bizarre turn under the BJP regime, when text books were re-written by unqualified individuals to incorporate their beliefs that had no rational standing. The proverbial pendulum swung to the other extreme. Well, just as Indira Gandhi was ousted after emergency, so too was the BJP sent packing.

Faced with all of this, there is significant resentment in the moderate Hindu community. Being tolerant by nature, they complain and look at the VHP and Bajrang Dal as their proxies in fighting for their grievances to be addressed. The anti-Muslim sentiment exists tacitly in mainstream India.

The cocktail drinking intellectual crowd crows about secular India, while having no idea whatsoever on what is happening in the hinterland! And the current manifestation of Hindutva has given them an ideal punching bag.

In Gujarat, Hindutva has been amplified by Mody and has taken a new avatar and has been branded as Moditva. His views are a source of discomfort even to the National BJP party, which is still smarting from the drubbing they got in the last election. The Modi government is criticized for ignoring the plight of the Muslims. He is of the mindset that government should facilitate economic progress and a rising tide lifts all boats. Gujarat has many Special Economic Zones (SEZs). The reports are all praise for the way they have gone about facilitating the acquisition of land, as opposed the fiasco in Nandigram and Orissa. At the same time, he preaches Moditva, which is looked upon as fueling communal disharmony. The perception is that the Muslims have "crossed the line" and need to be contained. There is some truth to both aspects of this statement. A segment of Muslims are ruining it for their entire community. Isn’t this a situation worldwide? Why do we see India as any different?

The Congress Party berates Modi for abandoning the very principles professed by Gandhi. And the Congress has been true to some of Gandhi’s ideology. Gandhi after all was partial to Muslims and Dalits. Harijan is no longer a politically correct term. Ambedkar didn’t and present day Dalits do not view Gandhi as having done them any favours. The Congress Party views this as their mandate for pandering to Muslims and other backward minorities for their votes. Gandhi was impartial to his own children and treated them harshly. This aspect of Gandhi is lost in the rhetoric and one can say that the Congress Party has exploited this attribute of Gandhi to the detriment of India.

All in all Gujarat it appears has been presented with two bad choices. A Modi victory would endorse his “right wing” policies. It will amplify the divisive under current that exists today. In many ways he is the George Bush of Gujarat. A Congress victory would endorse their “pander to the minorities” stance. This would continue to let this under current simmer and it may subside, remain or erupt some other day. Someone mentioned there will be other Modi’s who will emerge.

For India to progress, it is hoped we take a secular strong-stand against indiscretions by any community, and not single out a particular group. Rioting, violence leading to injury/death and destruction of property must be prevented by force if necessary, with it being made clear that parties involving in such activities aside from being arrested and booked are liable to get hurt in the process of crowd control. Under the auspices of Secularism, India has established different laws for Hindus, Muslims and Christians. A Uniform Civil Code has been talked about for ages, but no political party has had the wherewithal, guts or balls to get it passed and implement it. Each political party gets “political mileage” from the status quo.

That said, the basic tenets of Hindutva are worth propagating. Hinduism being a very unstructured religion is not well understood, by the Hindus themselves. Hindusim is not preached. Hindu Temples are places of worship and rituals. People go there, pray, have a ritual performed and leave. A Hindu doesn’t go to a temple to learn more about Hinduism. In fact the essence of Hindu philosophy is absent and does not exist in a Temple. It manifests in Ashrams. There are no edicts that must be followed. One does not get expelled or admonished for misconduct by a Temple Priest or Ashram Swamy. People choose what they wish to adopt and embrace. All a Hindu needs to do is be a good individual and in doing so, they are good Hindus. The Hindutva movement was intended to provide a resource that Hindus can avail themselves, if interested, to learn more about Hinduism. The Bhagavat Gita is one of the many Hindu scriptures and the majority of Hindus have not sat through an entire reading of the Bhagavat Gita, which takes just an hour day for a week. The majority to Hindus can’t read or write! Hindutva was an attempt to bring some organization to Hinduism and make it a resource for Hindus. It is unfortunate that some zealots have tarred it. Which in itself is a testimony to Hinduism. For Hinduism is a religion of choice, not edict. Many organizations have tried to introduce the notion of conversion to Hinduism, where none exists. One adopts Hinduism by accepting the validity of all religions and accepting that the “God” of one does not supercede the “God” of another. Unfortunately, other religions have taken advantage of this tolerant aspect of Hindus in India, and equally unfortunately, this has caused an adverse reaction with increasing Hindu militancy.


Friday, November 23, 2007

Economic Focus for a Better India


Overview:
Land reform, Special Economic Zones (SEZs), Exports, Infrastructure and expanding the Private Sector rapidly under strict environmental and compliance guidelines are key to expand India’s economy.

India has a landmass of approximately 3 million Sq. Km. or 1.27 million sq. miles. This translates to a population density of 368 persons per sq. km or 863 persons per square mile based on the 2000 census. Not all of India’s land is inhabitable. But this number does give an idea of the magnitude of the situation confronting India. With the forecasted growth, the population density is only going to increase. The question is how do we plan to accommodate this growth.

India needs to plan and build at least 200 metros/townships that can accommodate up to three million persons each to meet the forecasted growth in the population.

The time to plan and act is now. It is better to underestimate and over build than to continue a constrained based implementation path that we are undertaking today.

Furthermore, an estimated 1 Million youth are expected to enter the workforce every month for the next ten years. This so called demographic dividend discussed by some intellectuals will turn into a demographic disaster due to widespread unemployment.

Industrialization and Urbanization are the Economic Engines that provide jobs and opportunities. Also it is easier for a person in Rural India to move to a job than to bring a job to the person.

Fuel for a Vibrant Economy:
At the macro level, India’s economic focus should keep in mind that the population is expected to be 1.5 Billion by 2050. Sustaining this population will require a major increase in availability of food (domestically produced or imported), jobs, infrastructure and affordable housing, along with attention to Quality of Life issues such as, clean air and water etc.


Liberalization has benefited Urban India primarily and Rural India as well. Some are feeling hardships, which is inevitable with change. The overall impact is positive and a plus. The key is to drive the benefits deeper to benefit more. An expanding economy require:
  • An increasing consumer base fueled primarily by private organized and un-organized sectors
  • Increased exports, preferably net exporter of goods and services
  • Appropriate increases in government spending (infrastructure, education, defense etc.) funded by an increasing tax base
This is not rocket science. Increasing the consumer base requires a focus on jobs. At the very discreet, “micro” level, these are opportunities for individuals and families both urban and rural, to earn a living, attain an adequate Quality of Life, put aside some savings for emergencies and discretionary expenses and build a “nest egg” for retirement.


Also at a macro level (Figure 1, below) from an economic standpoint, the Rural economy would be surplus in Natural Resources, Commodities and Hard Goods (Agricultural, Manufacturing and Mining/Exploration). The Urban economy would be surplus in Soft and some Hard Goods (Soft: White Collar economy, Services and Hard: High Tech). The resulting net cash flow should be positive towards the Rural economy. Exports, FDI and remittances should result in increasing Foreign Exchange Reserves for India as a whole.



Figure 1


Urban and Rural India - Different Environments, Different Needs, Different Solutions:
Rural (Bharat) and Urban (India) are two markedly different environments and Quality of Life (QOL) translates to different issues for different demographic and economic segments.


For the Urban Poor this translates to a roof, sanitation facilities and basic amenities i.e. provide Shelters, Hostels, and Affordable Housing.

For the Urban Middle Class and the Rich it translates to better roads, transportation, and a cleaner environment.


For Rural India QOL translates to providing gainful sustained employment for the Uneducated, Unskilled and Unemployed beyond the agriculture sector.


The Rural Middle Class and the Rich enjoy the best Quality of Life in India today!


Housing 1.5 Billion people in 2050
Urbanization is Inevitable. Beginning with the Industrial Age, an urban environment became essential for any growth in the job sector. Agricultural jobs shrink with increased mechanization and the surplus labour has to be absorbed by an organized sector supported by a typically larger un-organized sector.


The organized sector – Manufacturing, Food Processing, Chemicals, IT, BPO etc. form the core. Surrounding this core, is the unorganized sector comprising of shops, dealerships, restaurants, maintenance and entertainment businesses etc. Also required are primary, secondary, vocational and post secondary institutions. All of this comes together only in an urban setting.


Special Economic Zones (SEZs):
Despite all the controversies, India has rightfully embarked on building new “Urban Centres” in areas earmarked as SEZs. These Urban Centres will provide much needed relief to India’s Mega Cities. They will provide opportunities for urbanites as well as the uneducated, unemployed, unskilled (U3s) from Rural India (Bharat). Situating these SEZ’s on the periphery of existing cities and in Bharat, is inarguably the right solution for the entire country. An SEZ in Bharat i.e Rural India, will be a mixture of an Urban Economy, surrounded by a Rural Economy.

These SEZs will provide opportunities for people:
  • Currently living in India’s congested cities, 
  • Living in Bharat, 
  • Migrating from Bharat to India in search of a better life. 
The success of an SEZ is predicated on an Economic Engine that provides the momentum for development. Currently it is stipulated that SEZs cannot be housing only. They have to be export oriented or commercial, with housing being an ancillary function. This is an unnecessary constraint. The Economic Engine of the SEZ could be anything. Jobs, any job and affordable housing are the main objective. Housing only SEZs provide jobs as well. Any estimate of the number of jobs are spread sheet guesstimates at best. The person who gets a job doesn't care if it is Manufacturing or Export Oriented or working in a service oriented job in an SEZ that is primarily for housing.


The challenge is to build SEZs fast, build them well and build till supply catches up with demand. 


Summary:
Rural India is impoverished and Urban India is bursting at its seams. By embarking on an economic policy that balances the situation will result in benefiting both these sectors.









Friday, November 16, 2007

Rays of Hope, Clouds of Despair

This is a tale from the hinterland. Of what is working and what is not. And what could be done to bring hope to rural India.

In a village in Karnataka, there is an enterprising young man, probably in his late twenties. He makes about Rs.100 to Rs. 150 a day doing gardening work for homeowners here. His wife runs a tea stall. Recently, he bought a color TV, which included a free mobile as a gift and signed up for a Rs. 150 a month cable service. One can say he is a self employed person and an entrepreneur.

There is another individual in nearby village, who owns a half-acre plot in which he has been doing nothing, since it is not feasible to grow rice or sugarcane, the traditional crop in these parts. He could grow vegetables or raise poultry, but since he is a day laborer, he is in a Catch 22 situation. He would have to give up his only source of income to work on his plot plus he would have to find the money to invest. The local retired school principal had just sold his four acres and was advising this man to do the same. He might get about 2 lakhs, which he could put in a bank and get Rs. 18,000 a year as interest guaranteed. That would surpass what he would make if he were to grow rice or sugarcane.

And there are individuals in this area who drink away at night and stumble into work at nearby small-scale companies, the next morning. Alcoholism is rampant in Rural India, and no amount of social engineering is going to solve this problem unless we focus on the young and educate them on the hazards of destructive habits. Addressing the adult drinking problem requires local support and has to be locally initiated. At the very minimum, illicit liquor should be forced shut and only licensed operators should be allowed to sell. Local taxes can be levied and to fund local anti-drinking initiatives.

Liberalization has benefited urban India and the likes of the entrepreneur, self-employed and the fortunate who have jobs. Some have been hurt by their unwillingness or inability to change. It has done very little for the marginal farmer. Besides, it is being falsely blamed for bringing despair to the marginal farmer and the increase in suicides.

Land no doubt is an asset. It is either an idle asset, or in many cases, for a marginal farmer even though he is “asset rich”, it is a liability. The marginal farmer needs an “exit strategy” to exchange his assets for cash. There is catch though. The market for agricultural land is curtailed by the government’s restrictive land policy. An individual has to have an agricultural license and have a non-agricultural income of less the 2 lakhs a year to be able to purchase agricultural land. Are you aware that most Indians are not allowed to purchase farm land?

There is a prevailing sentiment both in the government and presumably amongst the Leftists and Naxalites that the marginal farmer should be protected and assisted. What is being sidelined is that a successful farmer in today’s economic environment requires significantly greater skills than the farmer of even a decade ago. Today’s farmers have to possess entrepreneurial skills and approach farming as a small business. Not everyone is cut out to be an entrepreneur. Small landowners may or may not have the requisite entrepreneurial skills required. The odds are stacked against them – Illness, failure of monsoons, failure of crops etc. Consequently, programs geared towards protecting and promoting “marginal farming” are a romantic notion and is an exercise in futility. What the “marginal farmer” needs is a viable exit strategy whereby he can trade his land for sustainable income. The very laws intended to protect the farmer is working against the farmer’s interest. Instead of focusing on farm ownership, the focus ought to be on jobs. It is better to be employed and make a living than to own and not be able to make ends meet. Land ownership is a desirable goal, what is more important is focus on “Cradle to Retirement” Income and Quality of Life issues.

There is a tendency amongst the people to expect the government to solve their problems resulting in populist handouts and subsidies. New programs are launched, but a lot of the funding is consumed in administrative costs and by corruption. There is saying that is making the rounds, “The economy grows at night while the government sleeps.” The government should focus on essential programs and proper governance and allow the private sector to expand rapidly under proper environment guidelines and governance. In essence the government should “do right” and allow more.

The National Rural Employment Guarantee (NREG) when administered properly is an excellent means of providing assistance to the rural poor. What will make this program really effective is if individuals are provided with opportunities that they can avail themselves of, and bootstrap themselves out of poverty. The solution is appropriate infrastructure projects and an expanding private “rural” sector. An ideal situation would be as follows; NREG reaches out to the rural poor where they are, and as opportunities become available they can relocate to where the opportunities are.

A change in the current land policy that will allow anyone to own farm land would elevate land prices significantly. That in itself would go along way to let the sun shine through the clouds of despair that are hovering over the rural poor. And by facilitating private enterprises in rural India will bring rays of hope as well.

A question came up regarding the connection between agriculture land ownership and issues such as: alcoholism, improving non-farm income of the rural people and the two cases cited above.

Many farmers in Noida, for example got rich quickly by selling their agricultural land. Quite a few entered into various business and investments. However, there were some who squandered away their money in a few years.

The issue is what about landowners who squander away their windfall? Unless they can find a way to generate income during the time they are living off the one time payment, their children and families will be worse off.

The squandering of windfalls and alcoholism are age-old universal issues. You hear of Lottery winners squandering away their winnings. Alcoholism is not unique to underdeveloped countries it was and is prevalent in the developed world as well.

Angela's Ashes, an autobiographical novel, depicts how weekly earnings were squandered in a day to pay for the week’s drinking; a situation that is common in Rural India today.

The reverse of giving undeserving people land holds true as well. The Boon Dhan movement spearheaded by Vinobha Bhave was not entirely a success. A number of recipients were unable to handle owning land and their land reverted to money lenders or was sold either back to the original owners or someone else. Some donated land was not cultivatable and of not of much use to the recipient. Some rose, some fell to their level of competence.

In India there is a sentiment that land ownership is an entitlement. The land reform act in the 70s enabled the tiller to claim land they tilled from the absent landowner. The beneficiary was not allowed to sell the land for fifteen years. This was wrong and a mafia tactic of the government. In the developed countries, one aspires to be a land/home owner by earning it. It is futile to “engineer” human behavior. That importance should be given to a sustainable income stream rather than the ownership of land.

It is better to have a job, than not being to make ends meet from owned land. There will be some who will squander their windfall. These people are not going to create opportunity; opportunity has to be provided to them. That is where the private sector would come in and the need to focus on jobs. As long as they have a job to go to, they are not going to be any worse off than they were before the windfall. One can introduce programs where part of the windfall is put in a bank and provides these families with an annuity. But that again is “social engineering”. There is really nothing that ought to be done or can be done to stop these people from squandering their windfall other than making sure opportunities are available via job creation.