Divyaroop Bhatnagar's Blog, page 5

Religiosity and Spiritualism

There has often been a debate on whether there is such a thing as ‘Universal Human Values’ It may be argued that human beings have evolved a set of ‘Dos and Don’ts’ or views on what is desirable and what is anti-social behaviour that are almost invariant across societies in time and space. Murder, robbery, infidelity, lying and cheating are considered reprehensible in all societies. On the positive side truthfulness, family values, kindness, generosity, forbearance and other similar traits would be considered desirable almost anywhere. In a sense these traits or behaviour patterns may be classified as ‘Disruptive’ or ‘Cohesive’ so far as society is concerned. Society as defined as a fellowship or group of like-minded people who live, intermarry and work together demands cohesiveness and will tend to oppose disruptive behaviour.

It follows, therefore that those members of society who practice cohesive behaviour are regarded as ‘good’ and their behaviour is worthy of emulation as role models. Mahatma Gandhi would be probably the best example of such a person. While he was a deeply religious Hindu he did not hesitate to oppose some of the religion’s pernicious practices like untouchability. It is important to understand that people like Mahatma Gandhi are not religious figures in the conventional sense or ‘God Men’ in the uniquely Indian phrase. They are ‘Spiritual’ leaders and it would be useful to dwell on this thought for a while.  A Spiritual person by his behaviour, sayings and deeds is someone whom society looks up to and respects. Who does not propagate a blind faith in religion but rather inculcates respect for all humanity. Someone who works tirelessly for the uplift of the human spirit and is in that sense a spiritual person.

The other end of the spectrum is a Religious person. Most religions try to define a cause and effect relationship between your deeds and the end result. If you follow the Ten Commandments you will go to heaven. Similarly you will find Moksha if you feed Brahmins or bathe in the Ganga. In most cases the kind of behaviour that religions wish to foster is broadly similar to the behaviour that a spiritual person would aspire too. In that sense there appears to be little dichotomy between Spiritualism and Religiosity. However there are a few critical differences. There is an element of coercion in religion. If you not feed Brahmins you will not attain Moksha. It is almost as if mankind has to be bribed like fractious children to do God’s bidding. The second key difference between Religiosity and Spiritualism is based on logic vs faith. Spiritualism is logical as it fosters behaviour that benefits society. It is an end in itself inasmuch that the Spiritual person is liked, respected and emulated by his fellow men. That should be motivation enough. However, religion takes a crucial step beyond mere logic. It attempts to provide answers to basic existential questions. What is the purpose of our existence? What will happen to us after we die? There are no logical answers to such questions and the answers that religions provide cannot be subjected to empirical proof. Has anyone ever seen heaven? Or does anyone know what Moksha feels like? The convoluted language and allegories that religious texts take shelter behind are really indicative of the confusion and uncertainty that prevails in this area. The unfortunate side effect of insistence on faith is religious dogma and exclusionist thinking. The conviction that ‘my way is the only way’ and that ‘my religion is the best and everyone has to conform to it’ has unfortunate consequences that we are all too familiar with.

Does it really matter whether you will go to heaven after a lifetime spent in conforming to archaic religious precepts? Does it really make a difference whether you will never be born again and that your soul will fuse with the Brahman after you die?

Is it not better to strive to be a better human being today through your own inner conviction? Is it not enough to be a good and spiritual human being without feeling it necessary to impose your beliefs on others? Surely spiritualism is all that a human being needs to have a good life himself as well as having a positive impact on others.

The Opium of the People

"Religion is the sigh of the oppressed creature, the heart of a heartless world, and the soul of soulless conditions. It is the opium of the people" – Karl Marx
There is no doubt that religious sentiments and beliefs are becoming stronger and more polarised in today’s world. Whether it is militant Islam throughout the Middle East, Zionism in Israel, Buddhism in Sri Lanka or Hindutva in India, religious belief and dogma are becoming more and more significant. Strangely enough even as material prosperity increases almost universally mankind still seeks solace in the “opium of the people”.
Religion was invented to try to answer the basic questions of life that were not amenable to strictly logical thought. Why do we exist? and What happens to us after we die? Philosophical questions indeed. Worthy of examination by the keenest intellects. Unfortunately, answers to these questions even by the most erudite thinkers are full of circumlocution and obfuscation. The simple fact is that nobody knows the real answers to these questions. All inquiries are met with a dogmatic statement that “you need to have faith – mere logic will get you nowhere” The other unfortunate offshoot of this confusion is the creation of ritual. You need to pray 5 times a day facing in a particular direction in one religion while you need to pray to a particular god on Tuesdays for your wishes to be fulfilled in another! I ask you – can anything be more ridiculous? All this will get to Jannat, Nirvana, or Heaven – take your pick. The names differ but the premise is consistently absurd.
The real question is why is religion gaining ground? Marx has some pointers to the answer. The human condition, moral, spiritual and social is deteriorating. While we are better off materially our lives are becoming increasingly barren on all other parameters. We clutch at straws – the oily Hindu Godman or the wily Mullah who promises us salvation and a modicum of spiritual comfort in return for a ‘small’ consideration mainly in cash! We are like rabbits under the spell of the ferret who with his glistening greedy eyes is waiting to gobble us up.  

Strictly logical thought will not show you the way to heaven. But it will prevent you from acting irrationally. It will point you in the direction of ‘good’ behaviour, of being a rational human being with a mature and sensible outlook to your fellow men and society. In the ultimate analysis this is all we need. Religion and associated irrational behaviour needs to be curbed by society. By all means worship your gods in whatever fashion you want. But do it in the privacy of your own home and don’t let your behaviour impinge on others. Religion like opium is a pernicious social vice and if it has to be practiced let it be in within the four walls of your own space.

Nuclear Power and Bullet Trains

“We have to honestly and deeply reflect on the accident,” says Takafumi Anegawa, TEPCO’s managing executive officer, whose role is to shake up a utility he has accused of cozy relations with regulators and a cavalier attitude toward safety. “We should reset the level we pursue to the very highest. If we cannot achieve that level because of our capability or our culture, it means we are not qualified.” Akira Ono, the plant superintendent at Fukushima Daiichi, is equally blunt—at least in a Japanese ­context—about the need to reassess the nation’s nuclear future. “Because of the accident,” he says, “nuclear energy is an issue that should be discussed again in our country.”
“A Right to Information (RTI) query has recently revealed that 20,000 people died on Mumbai railway tracks in the past five years. That means over 4,000 people per year and, on an average, 10 people per day.”
India has a habit of ignoring reality. Many of us are so self-absorbed and egoistical that we tend to shut out sane and practical voices amongst us. One such unlikely personage is the mild mannered and scholarly Dr. Manmohan Singh, our former Prime Minister. He staked his reputation on opening up a ‘Nuclear Deal’ with the USA that effectively ended the nuclear apartheid that India had been subjected to:
“The framework for this agreement was a July 18, 2005, joint statement by then Indian Prime Minister Dr. Manmohan Singh and then U.S. President George W. Bush, under which India agreed to separate its civil and military nuclear facilities and to place all its civil nuclear facilities under International Atomic Energy Agency (IAEA) safeguards and, in exchange, the United States agreed to work toward full civil nuclear cooperation with India.”
Let me hasten to clarify that I strongly believe that India has the right to nuclear weapons and nuclear power. The apartheid that India had been subjected to was wrong and discriminatory and in that sense Dr. Manmohan Singh did a signal service to the nation by forcing the door open. The issue is whether India has the technology, discipline, quality orientation and maintenance required for running nuclear plants. Accidents in the USA, USSR and now Japan have demonstrated that even developed economies find the vigilance required for managing nuclear assets difficult to come by. What chance does a country like India have when we find it difficult to even maintain roads, run an airline or keep a toilet clean? It’s a disaster waiting to happen. In the interests of public safety we need to re-evaluate whether we really need a nuclear energy programme. It may be far better to focus on fixing our coal supplies and getting power generation and distribution under control from our existing thermal plants rather than chasing the nuclear mirage.
In a similar vein, our current Prime Minister, Mr. Narendra Modi seems to be obsessed with Bullet Trains. There is something undeniably attractive and symbolic about trains that could cut travel time from Mumbai to Delhi to 8 hours. It signifies a country that has arrived on the technological stage and sounds like a fitting gesture for the triumphant ruling party. However, the grim reality is that 4,000 people die every year on the Mumbai suburban rail network. A nation that ignores such a chilling statistic can hardly aspire for technological or moral superiority. Overcrowding, lack of toilets forcing slum dwellers to use the tracks as a bathroom, few over bridges – whatever the reasons, the number of fatalities are mind boggling. It is a shame that life is so cheap in our unfortunate country.
There is a tendency in India to always look at the brighter side of life. To ignore the grim reality today and yearn for a better tomorrow. It reflects in our tendency to create grand buildings, malls, airports and multiplexes and then forget that they need maintenance too. A Pakistani once said that while people from the two countries were quite similar, they were different in one aspect. He said that while both Indians and Pakistanis were lying in the gutter, the Pakistani had his head facing down in the filth while the Indian’s head was facing upwards looking at the stars!

A great attitude but it does need some practical back up.

A Refreshing Change

After a long time we have a Prime Minister or 'Pradhan Sevak' as he called himself who can actually communicate. Mr. Modi's skills as an orator were never in doubt after his election campaigns but he excelled himself at the Red Fort on Independence Day.

Mr. Manish Tewari of the Congress complains "it is unfortunate that the Prime Minister got bogged down in pedestrian issues without being able to rise to the occasion"

Unfortunately, Mr. Tewari, what are 'pedestrian issues' for you are in fact the most pressing issues for the country at large. Enough has been said about the PM's speech in the media and I do not intend to go over the same ground. I will restrict my comments to the issues that stood out from a common man's perspective.

What was refreshing was a national leader who took on the most serious of women's issues head on. As he correctly put it the nation needs to put a check on it's men folk, or 'boys' as Mr. Mulayam Singh Yadav would call them. The fault for getting raped does not lie with women for heaven's sake! He was equally upfront about the abhorrent practice of female foeticide and our alarming sex ratio. I hope his strident message is driven home in the patriarchal heartlands of Haryana and other states where these practices are rampant.

Mr. Modi said that people may laugh when he talked about sanitation and toilets. He is only taking a leaf from the father of the nation who talked of little else! It is easy to snigger at such a discussion and that too from the ramparts of the Red Fort. I am very sure that those who do so have never faced the ignominy of their mother, sisters, wife or daughters having to use the 'world's biggest bathroom'. Apart from poor hygiene, they are at great risk of molestation and rape. The fact is that India has become a vast cess pool. Our towns and cities are filthy beyond description. Uncollected garbage lies around, roads are never swept and are full of encroachments. Our rivers have become sewers in which nothing can live as we dump untreated sewage in them from all our major cities.

The real issue which I think Mr. Modi recognizes very clearly is about practical and relevant social change. As a society our moral. ethical and social compass has gone awry. Traditional bonds of clan, family and fear of the law have loosened and there is a whole new generation that carries confused messages from the media, internet, bollywood, godmen and their own peer group. Harnessing the 'youth bulge' of India is challenging in any case and it was compounded by our weak kneed, senile and decrepit leadership that could not even begin to understand the 'New India'. Even today the likes of Mr. Tewari would like to hear grandiose pronouncements of intention rather than practical prescriptions for a New India.

As Ayn Rand put it so pithily:
“No principle ever filled anybody's milk bottle” 
― Ayn Rand,  Atlas Shrugged

Saraswati

Saraswati
This article does not contain any original research. It borrows freely from various sources that are acknowledged in individual footnotes. Raja Ravi Varma’s famous painting has been reproduced in several web sites. This version is also taken from the net and so is the Balinese painting at the end of the article.
Fact, fiction and speculation have a habit of blending together when one looks at ancient India. In this article I have put forward my point of view – it is not accepted historical dogma and neither is it original. It is speculative and interesting as it has many facets. Enjoy the read!
ámbitame nádītame dévitame sárasvati, "best mother, best river, best goddess" – Rig Veda

The Rig Veda is generally said to have been composed between 1700 – 1100 BCEThe Saraswati River is one of the main rivers described in the Rig Veda. It is mentioned several times while the Ganga is mentioned only once.
Geological evidence has established that the river that is understood to be the Saraswati dried up completely around 1900 BCE i.e. earlier than the date when the Rig Veda was composed and earlier than the date of the Aryan invasion.
Strange isn’t it?
Clearly, these dates and events don’t tie up. There are three possibilities:1.    The Rig Veda was composed earlier than what is the generally accepted date. 2.    The date of the Saraswati’s drying up is more recent.3.    The river understood to be the Saraswati today is not the river referred to in the Rig Veda.
In order to get a perspective on this conundrum, it is necessary to examine several interrelated facets.1.    What are the facts about the Saraswati River?2.    The Aryan invasion – Who really were the ‘Aryans?’ Did they actually exist at all?3.    The Indus Valley civilization. Where and when?4.    Rig Vedic rivers and cataclysmal geological events.5.    When was the Rig Veda composed? How old is Indian civilization?
The commonly held belief today is that the Saraswati River originated in the Bandarpunch massif in Western Garhwal and flowed down through Haryana, Punjab, Rajasthan and Gujarat into the Arabian Sea following a course roughly parallel to the Indus. The Sutlej and the Yamuna were tributaries to the Saraswati in those days (prior to 1900 BCE). The river has been identified as the Ghaggar Hakra River which is little more than a rain fed rivulet today near Chandigarh.Civilization in India began with the Indus Valley civilization also referred to as the Harappan Civilization after one of the principal sites (now in Pakistan). The accepted dates for the civilization are 3300 BCE – 1300 BCE. The civilization was widespread with major sites being found on the Indus River as well as on the Saraswati. In fact the number of sites on the course of the Saraswati are actually far higher than the Indus. The civilization started declining around 1800BCE and by 1700BCE most of the cities had been abandoned. It was initially thought that the Indus Valley Civilization declined due to an invasion from the North West by the so called ‘Aryans’What is more likely is that the drying up of the Saraswati and the change of climate (in prehistoric times the Indus valley was far more wet and verdant than it is today. The climate changed to more cool and dry, paving the way to a decline in agriculture and food availability). The inhabitants of these cities (at the peak, the Indus Valley civilization was estimated to have close to 5 Mn people) started migrating eastwards laying the foundation for the settlement of the Gangetic plain.
It is clear from the foregoing that the hymns about the Saraswati in the Rig Veda were therefore composed earlier than what is currently accepted as fact. They must have been composed before 1900 BCE as the river is described as a mighty stream with a lot of water. Who wrote them? And when were they actually written?
It is difficult to imagine that the people who lived on the banks of the Saraswati did not write about it. Instead the ‘Aryans’ arrived and composed the most evocative and emotional poetry after being rough nomads in Central Asia! This is really difficult to imagine. It’s far more likely that the Rig Veda was composed by the Indus Valley people themselves at a time when the bounteous rivers gave them a wealth of benefits. If we are to accept this thought, the date of the Rig Veda gets pushed back at least before 1900BCE. How far back is then the question?Astronomical references in the Rig VedaOne of the strange features of ancient Indian History as most of us have studied it is that there is a strange gap between the Indus Valley Civilization and the Vedic ageThere are two aspects to this continuityAs B.B. Lal puts it “Even today there is no walk of life in which we cannot discern the grass-roots features of this ancient (Harappan) civilization: be it agriculture, cooking habits, arts, crafts, games, ornaments, toiletry, religious practices or social stratification.”
The mystery of the lost Saraswati is an intriguing tale. Our history has been written by our colonial masters, the British, who obviously had their own motivations and limitations. While most of this article rests on speculative foundations there is considerable merit in focusing more on our own history. There is every possibility that ancient India holds many secrets and learning that has been lost along with the Goddess of learning – Saraswati.
PostscriptThe Indus valley civilization had considerable trade with the civilizations of Mesopotamia and others in the Middle East. Indus valley seals have been found there and conversely evidence of trade has also been found in the Indus port of Lothal. Perhaps in keeping with the intangible nature of the Saraswati tale the fact that Balinese Hindus accord primacy of worship to Dewi Saraswati is an indicator that Indus Valley ideas spread even further than their tangible trade.
                                                               Dewi Saraswati – Bali




Max Meuller and others quoted in Wikipedia. A contrary view is held by Rajesh Kochar who believes that the Rig Vedic Saraswati was actually the Helmand river of Southern Afghanistan. The Lost River – Michel Danino details these geological events. Sir Mortimer Wheeler propagated this view based on the discovery of 37 skeletons found in Mohenjodaro. However this theory has been largely discredited as of now. It was actually Max Meuller (a German) who first propagated the Aryan Invasion theory. It found many takers in the British Colonial administration. The ‘No Aryan Invasion theory’ is certainly not accepted fact. It has many detractors especially since there is a similarity between North Indian languages and those in Europe. There is also commonality between the Zend Avesta of the Zoarastrians and the Rig Veda. The traditional view is that the Aryans while migrating from their Central Asian homelands also went to Iran and Europe and thus there is a common root. The believers in the No Aryan Invasion theory feel that it is equally possible that language and traditions originated in India and travelled westwards not the other way around. It is also possible that language and traditions can travel even without a physical migration of people. Astronomical code of the Rig Veda – Subhash Kak Romilla Thapar has said that after the collapse of the Indus Valley civilization, ‘the material culture shows no continuities’ The Lost River – Michel Danino

AAP Quo Vadis?

As a keen supporter of the Aam Aadmi Party their debacle in the Lok Sabha polls and the subsequent internal meltdown has been heartbreaking. However, the raison de etre for the AAP to exist in the first place is still around. The euphoria of the BJP's victory has silenced some of the cacophony that was building up during the twilight days of the UPA against corruption and institutionalized poor governance. However as the BJP will find out in the next few weeks and months a behemoth is not so easy to turn around and control. Rapes in UP, power outages in Delhi and a media baying for your blood can unnerve even the strongest amongst us.

In my view the AAP made two crucial mistakes. One, that they gave up the state government in Delhi too easily. Many of us, including me, thought that their resignation would garner more support for them. It did indeed do so in the short term but the rise of the BJP blew them out of the water. They came to be seen as churlish and immature as they clamored against the Lt. Governor and the courts. Two, the decision to contest so many Lok Sabha seats was bizarre. The AAP leadership (and I suspect it was the persona of Arvind Kejriwal) got carried away by the myth of their own invulnerability. The role of giant killer that led Kejriwal to contest the Varanasi seat compounded the problem as it sucked up precious resources from the rest of the election. Subsequently the bickering between Shazia Ilmi, Yogendra Yadav and Manish Sisodia has added to their woes. Kejriwal's imprisonment due to his refusal to put up bail and his subsequent capitulation has made him a figure of fun. Lately, their petulance against the BJP with respect to the power crisis in Delhi is seen as counterproductive and not adding value in a serious crisis.

The real question is what next? As I see it, the fledgling party needs to reclaim its roots. As a first step, they need to focus back on Delhi in a constructive way. The few Lok Sabha members that they have can continue to perform their duties but cannot be the focus of the party at this stage. Under no circumstances should they accept support from the Congress to form a Government in Delhi - that would be a complete disaster. They have to find new ways and issues to connect with Delhi residents in the run up to fresh elections. Corruption is old hat. Most people believe, however unrealistically, that Mr. Modi will cleanse the body politic by waving a magic wand. Anyone who rails against this oversimplification will be disregarded and ridiculed. Poor governance is also a non-issue now. So what should the AAP be doing and how should they craft their strategy? Their main strength was a genuine simplicity, sincerity and willingness to connect with real people at a grass root level. To solve real life problems for real people. They are not good at a broad statesman like speeches that Mr. Modi is good at or even massive, dreamlike schemes like Mr. Rahul Gandhi. For the AAP to succeed and build back its credibility they need to focus on Mohalla issues that impact the common man: cleanliness, drains, roads, reliable water and electricity, safety and security of honest, simple folk. This is what gave them their mandate and it is this and only this that can win them the people's approbation again.

Check out my book 'Journey to the Hills and other Stories' for a dose of midsummer nostalgia....
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The New India

The BJP's stunning performance is being written about in articles, blogs and social media posts by millions of people in India and abroad. The purpose of this post is to think about what needs to be done if we are to truly recognize 16th May 2014 as a real turning point. The dawn of a new India.

What does the new Government need to do? They must have thought about it but sometimes in the euphoria of victory one can tend to deviate from the chosen path. In the quest for development which is the cornerstone of the new Government's agenda we should not forget critical changes in the way we think and do things. Processes are as important as outcomes as they determine what the soul of the nation really is.

Inclusiveness

Many people in India whether Muslims, people from the North East, migrants from Bangladesh, Sri Lanka or Nepal are treated as outsiders in their own country. This is equally true of migrant labour (Biharis and UPites in Mumbai and Punjab for example). This needs to change. India does not treat it's women folk as part of itself. They are treated as sexual objects or as an inferior race. Perhaps this is the single biggest biggest failure of Indian society.Growth cannot be for the elite alone. It has been proven time and again that growth per se can actually increase disparity. I'm not a great believer in the dole or handouts but we do need to be mindful of the poorest of the poor as the whole country progresses.Systems and Processes - Simplification, Transparency and Empowerment

India has a plethora of laws. Some of them are possibly the longest and most  complex pieces of legislation in the world. Complexity breeds opacity which in turn breeds corruption. We need to undertake a massive exercise to simplify our processes and systems. Government bureaucracy is not empowered or at least they don't feel that they are. It is far easier for them to say no or to ask a question than to say yes.The Role of the Bureaucracy

Since colonial times, the role of the bureaucracy has been to subdue, control and exploit the native population. Unfortunately for us, independent India's leaders have done nothing to change this. It suits them to perpetuate this role. If Narendra Modi's vision of development is to be realized, the role of the bureaucracy needs to be reoriented to achieve this.Non-independence of the police, CBI and judiciary is part of this problem. The current structure does not allow for independent action (with some honourable exceptions amongst the judiciary)Corruption

The all pervasive presence of corruption in India has been too well documented to reiterate here. There are two types of corruption - transactional and organisational.Transactional corruption is the problem that the common man faces everyday. The AAP had the right idea when they started to tackle this. It is a grass roots issue and needs to be addressed from the bottom upwards. Organisational corruption is at a higher level - whether it is Bofors or crony capitalism or the 2G scam, these are bigger issues. This is equally difficult to handle as the vested interests at this level include the political class.Enforcement

Whether it is wrong parking, speeding or drunk driving, India has not been able to enforce it's own laws. These are, of course, very simple and even trivial examples but they are symptomatic of the malaise we are in today.Enforcement at a higher level is equally important. Many large businessmen feel that they can bend the rules as it's all a question of money. Obviously the bureaucracy and the politicians play along with it as they all make money.Millions of dollars will be spent on development projects. There will be a quickening of the pulse of the nation as it shakes off the lethargy of the last few years. My fervent hope is that along with all the activity we stop and introspect about what we have become as opposed to what we would like to be. Let us not lose the nation's soul in our quest for progress.

Who needs MNCs?

In this day and age when India is all set to be a player on the global stage and has 'liberalised' its economy progressively from 1991 such a topic seems antediluvian and almost irrelevant. Actually its neither. In our haste to become more liberal than the West we seem to have forgotten our own interests.

An article in the Economic Times dated April 8, 2013 stated:

"In December 2009, the RBI removed the cap on outbound remittance of royalty on trademarks or brand names of foreign companies or partners, which was earlier limited to 5% of domestic sales, and 8% of exports. These companies wasted no time in hiking the royalty for their Indian subsidiaries. Even firms like Gillette India, 3M India and Hindustan Unilever, which were not paying any royalty, started doing so from the same financial year. The rationale for the hike was that the Indian subsidiary should pay more for its 'access' to the parent company's capabilities and use of its brand name."

The situation in the Pharmaceutical sector is even more poignant. In his book, External Dimensions of an Emerging Economy, India edited by Byasdeb Dasgupta (Link) some facts about the major Pharma companies operating in India have been brought out:

Net Forex Earnings from the top 10 Pharma MNCs operating in India declined by 15% per annum between 1994 and 2010Dividend Remittances in US$ for the same group of MNC companies rose by 16% per annum during the same period.Net Forex Earnings from the top 10 Pharma INDIAN companies rose by 29% per annum during the same period. I would like to make a case for limiting the foreign shareholding and capping royalty and dividend flows for MNCs operating in India. The argument goes as follows:

Many MNCs operate in low tech areas of the economy. For example Unilever, Nestle or Reckitt Benckiser. One may argue that India really does not need technology for soaps, noodles or toilet cleaners. In fact these MNCs actually contribute to raising consumer prices due to their abnormally high marketing spends and overhead costs. Equivalent products from Indian companies are just as good if not better. It is really unreasonable to pay royalty in addition to dividend for the dubious advantages of using MNC brands in our bathrooms and homes.Some MNCs actually market products that are bad for your health. Carbonated soft drinks, cigarettes and fast food are examples of this. Inspite of all the posturing by these companies that they are actually 'water neutral' or that they pay taxes on tobacco to the government exchequer the simple fact is that purveyors of such unhealthy products should not be encouraged and should certainly not be allowed to repatriate huge amounts of Forex dividends to foreign shareholders. It has been argued that Indian companies do not have the skills or cash to make required investments in the retail sector. Consider that the 3 largest retail chins operating in Russia are all home grown ahead of Walmart and all the others. Consider also that Reliance Retail has made a profit for the first time after 6 years. They are also the largest retail chain in India ahead of the Future Group. Consider also the huge pile of cash that Reliance is sitting on and it is not difficult to predict that they will take the lead in the Modern Retail revolution brewing in India. Walmart and others will be waiting in the wings while Indian companies steal a march on them. I therefore feel that FDI is not required in the retail sector. Indian companies will show the way in the next 10 years.India has the dubious distinction of being the largest importer of arms in the world. This is nothing to crow about as it is a significant drain on our Forex resources. A lethal combination of arms agents, corruption and a nexus between politicians, bureaucrats and foreign arms firms have ensured that Indian manufacturers (both public and private sectors) have been effectively stifled over the years. This nexus needs to be broken and it requires strong political will to do it. I doubt if either the BJP or the Congress has got what it takes.One of the most successful examples of liberalisation has been the telecom sector. Here again, leading players like Airtel, Reliance and Tata are all Indian. The only exception is Vodafone and as we all know there is a huge tax case pending against them (admittedly the government's doing but still). The fact of the matter is that the need for foreign expertise is sheer nonsense. If required it can always be bought at a price. A more nebulous argument put forth by protagonists of the MNCs focuses on the fact that these companies have helped in no small way in building management skills in India. This was a valid argument till about 15 years ago. In the interim period a plethora of well managed Indian firms have caught up. Their management practices are fully on par with the MNCs and in fact these companies are often preferred by young MBAs as places to work.This post has already become longer than my usual blogs. I could go on with further examples to bolster the argument. However, the simple fact is that India needs to look after its national interest while allowing foreign firms to operate in India. There is no template to follow. China, for example, makes its own rules and so does Russia. India is a big enough market for it to be attractive for MNCs to enter. But we should negotiate strongly on the terms and conditions and make sure that the 'level' playing field is tilted in favour of local firms.

Kejriwal's Resignation - Nautanki, Naivete or Nicely Done?

The established political parties, media and the glitterati are somewhat confounded by the abrupt resignation of the AAP Government in Delhi. It is probably the first instance of an en mass resignation by an elected government in India on a point of principle. The twittering classes typified by the likes of Suhel Seth are basically saying 'good riddance to bad rubbish' Their delicate sensibilities have been overwhelmed by the odour of the Aam Aadmi up close and personal and it's high time that politics was reclaimed by their own class even if they wear designer Khadi rather than Gucci or Armani. This type of response has been building up ever since Somnath Bharti had his run in with the Delhi Police some time ago. In essence, the elite may profess to want changes in the body politic but are unwilling to soil their lily white hands with the rather messy process of achieving it. Frankly, this response coming from the people that it does is irrelevant. Firstly because these people are are in a microscopic minority even though they wield disproportionate power in India today. Secondly they are not the AAPs constituency. The real Aam Aadmi is quite happy with the turn of events as they unfold. The 'Nautanki' response to the activities of the AAP is therefore highly visible as it's played out on National TV everyday but it's largely irrelevant even as the people who participate in the charade are irrelevant too. Their real fear is that the nation is finally waking up to an understanding of its own strength. When that happens it will be a revolution in the true sense of the word.

The second response is a trifle more charitable. In this scenario, the AAP is perceived to be well meaning but naive. Kejriwal is regarded as a simple minded idealist who came to power in a groundswell of public activism starting with Anna Hazare's movement. The party is seen as a bunch of novices who are unable to govern as they should. Rakhi Birla's midnight rounds were seen as sincere but childish attempts to improve matters for the homeless poor and people questioned whether Kejriwal could read and sign files while sleeping on the pavement.

Nothing could be further from the truth!

Kejriwal and his supporters have been planning their foray into politics for a long time. They realised that the association with Anna Hazare was ultimately leading nowhere and it was important to sharpen their focus by jettisoning some of their more simple minded colleagues from that movement. As of now, every move of the AAP has been carefully planned and orchestrated keeping in mind their main constituency, the Aam Aadmi. They decided to ally with the Congress as it was the lesser of the two evils. If they had refused to form a government, they would have lost out in two ways. One, that they would have disappointed a large section of their followers who had great hopes pinned on their victory. Secondly, they wanted to give a taste to the electorate about what exactly does it mean to have a government of the AAP. In this they have succeeded in no small measure. They have proved conclusively that their brand of 'active' politics is a hit with the Aam Aadmi. They will not sit in their offices and issue esoteric orders that on one follows. 'Management by Walking Around' was a phrase coined for a management style that mirrors the AAPs approach. For better of for worse the other parties have had to pick up some cues from the AAPs style. Hopefully this impact itself will be positive for the country.

Finally the resignation of the government was inevitable given the restrictions on the state of Delhi and the uneasy relationship that the AAP has with the political establishment. In my view it will achieve two very important objectives:

The established parties are terrified of a re-election before the Lok Sabha polls. The Congress less so as it has curled up and died in any case. However the BJP is really scared that if the AAP gets a thumping majority in Delhi in a re-election it will have a significantly negative impact on their chances in the Lok Sabha elections. This impact will be negated if the Delhi assembly elections are held along with or after the Lok Sabha elections.Kejriwal is now free to concentrate on the Lok Sabha Elections. There are already rumours surfacing that he may decide to contest against Mr. Modi. Whether they are true or not they add to the larger than life picture that he already has (Muffler and perennial cough notwithstanding) and they add to the confusion and uncertainty in the BJP ranks. On a more serious note, the prospect of the AAP getting 50-60 seats has been significantly enhanced by the resignation of the AAP from the Delhi assembly. If that does happen it will open up some distinctly new possibilities!All in all, it is fair to say that the AAP has remained true to its constituency and its principles. They are hardly naive and certainly not there for entertaining the public with their antics. They have now time and freedom to concentrate on the Lok Sabha elections and it will be interesting to the see the outcome of their efforts.  

Amartya Sen and the Aam Aadmi Party

The debate between two of the most famous Indian born Economists made for fascinating reading a few months ago. Jagdish Bhagwati was strongly in favour of growth as the key measure of economic success. It almost sounded like 'Growth at any Cost'. Amartya Sen, on the other hand, argued that growth has to be balanced and  inclusive. If it is not, rapid economic growth can actually widen disparities and create social tension between the haves and the have nots. The debate was very intense and often acerbic.

This debate, in a sense, is also being played out in the political arena as of now. One may argue that Mr. Modi clearly represents the Bhagwati faction. His mantra is all about growth and development and the Gujarat model is held up as the shining example of what Modinomics can do for the country. Amartya Sen, on the other hand is supported by a more motley crew. The Congress presents a somewhat muddled picture. There are times when they appear to be doing what it takes to uplift the masses. MNERGA and the Food Security Bill are examples of such activity. However, they falter when it comes to implementation and many of these measures actually create a feeling of dependence and complacency amongst the recipients. The Left and confused centre such as Trinamool Congress, AIDMK and the like largely tilt towards Sen, perhaps because he unwittingly provides a justification for populist, vote catching schemes so beloved of our political class.

Perhaps the strongest supporter of Amartya Sen and his inclusive economics is Arvind Kejriwal and the Aam Aadmi Party. The raison de etre for the AAP's existence is the uplift of the Aam Aadmi. As such the policies of the AAP should resonate strongly with Sen's arguments. The purpose of this blog is to analyse some of the strategic decisions that it is leading to and to look at their pros and cons.

The AAP's approach to removing corruption is interesting. One, they are approaching the problem from the ground upwards to start with. Most of the other political parties are oblivious of this. In a recent visit to Gujarat, for example, my taxi driver had a pay a bribe at the point of entry to the state for getting an entry permit. He did not think it was unusual but that is the state of affairs in Modi's Gujarat. Many people have praised Gujarat for the ease of doing business and I am sure that that is indeed the case, but 'transactional corruption' continues unabated. The AAP believes that the eradication of corruption must start with the common man. In other words it is an 'inclusive' process. Two, they are gunning for visibly corrupt figures. Their 'hit list' may be controversial and unproven but it does make a specific point. Until Kejriwal took on Shiela Dixit in her own constituency and defeated her, the thought of specifically targeting individuals deemed to be corrupt and keeping them out of public office had not occurred to anyone.
The strategy behind the redistribution of the cost burden for the power and water charges is again based on inclusive thinking. There is considerable outrage on the subsidies that have been provided for the common man by the Delhi Government but the AAPs thinking is consistent. They are focusing on delivering a benefit to the Aam Aadmi even if it means that more affluent consumers have to pay more. There is also a view that access to clean water is almost a fundamental right and it is the duty of a responsible government to provide for it. The other related point is about the somewhat questionable benefits that have arisen due to privatization. The purpose of this blog is not to make a case for Government control and operation of public utilities but there is certainly a case for maintaining a close check on their operations. Accusations such as gold plating of assets for getting a larger return on investment and sale of power at throw away rates during the lean season abound. These matters are of grave concern especially as the Delhi consumer of power is paying far more than he used to before privatization. Private companies involved with the Gurgaon Expressway and the Airport Express Metro Line have also not exactly covered themselves with glory.

There is a clear difference between populism and inclusive growth. By definition, populism has a a negative, short term connotation (somewhat like the proposed bifurcation of AP where the long term benefits, if any, are lost in short term vote mathematics). Populism creates a feeling of dependency on the part of the recipient and does not result in a long term benefit. Inclusive growth, on the other hand, strives to create sustainable development. It strives to minimize inequality. The US also realized that they could not wipe out generations of ill usage of the black community by normal means. Affirmative Action is what they came up with and whatever one may say otherwise, racial prejudice is less in the US than in most other white majority counties. It is the duty of any right thinking Government to put the interests of its weakest sections first and ensure that the poorest of the poor also occupy their rightful place in the India of the future. Perhaps the AAP can show the way to the more established political parties in this regard.