Monday, January 23, 2012

Impregnable and imponderable Malayalee mindset

Kerala is nature’s paradise with greenery, enchanting flowery plants with coloured flowers, mystic , cosmopolitan, with age old traditions, culture, and with temples, churches, mosques, synagogues, built during pre-dated historical times. It is god’s Own Country. From time in memorial, travllers and merchants came to this tiny land with their wares and took back spices, ivory, herbs. Christianity was established here even before Europe was aware of it; the most mosques were built here, way back in the 7th century. Vasco-da-Gama, landed on her shores, which led way to other European settlements. Today, Kerala can boast of human indices which have no par with amongst other states of India. It has 100% literacy, and the highest newspaper readership, women overtaking men in Census, expatriates around 1 million who remit money back to their homes which accounts for around 8% of the Foreign Exchange Reserves which is equivalent to 80% of the foreign institutional investment in India. The private sector which provides higher educational courses provides a strong climate for bringing out high professionals in medicine and engineering. Kerala has the highest suicide rate in India. The Banks do not recycle money to productive activities so that production units can manufacture goods getting income to distinct people at different stages making money circulate. Instead of putting money into commodities, the Banks do not circulate the money in Kerala which would have caused manufacturing expansion, capital money circulating brings about employment, realize itself in an expanded value. Money does not circulate in the state but is siphoned off to nearby states for disbursal as credit and creation of capital there. Capital and Labour are mobile. That is what is happening in Kerala. Those sectors which have production facilities like Coir, banks heavily on raw materials from Tamilnadu- coconut fibre has to be transported from Tamilnadu while manufacturing units are in Kerala. Kerala produces 93% of natural rubber, to feed manufacturing units mostly concentrated in North India. Absence of industrial landscape makes Kerala, a consumer state. Its production base being zero, whether in vegetables, or others, it banks on import from other states. Kerala has plenty of abundant water with 41 rivers flowing west and three flowing east, crisscrossing the state. Yet, in terms of per capita consumption, the state is next to Rajasthan, in the 20th place amongst the States. Kerala’s economy is imponderable. It has sky rappers like any metropolitan city. The fleet of cars imported with flashy bodies, colours, engines, worth Crores is seen on the roads. Even National Highways and Street Highways which may look like Village Roads do not have the capacity to hold the traffic. Investment in concrete jungles, highest pollution, has made people here susceptible to diseases. In this State Build, Operate and Transfer won’t work. First, people may not surrender their land. Secondly, they won’t pay any toll. Another reason why there is no economic activity is on account of heavy spending of household on Gold. India’s 10% of gold sold is in Kerala with an annual growth of 20%. Liquor is another industry that thrives. Tourism brings in foreign exchange but the visitor is the medium end traveler whose spending capacity is narrow. One of Kerala’s best natural Ports, Kochi, seem to await cargo. It deals more with import cargo, rather than export cargo. It lags behind the latest Ports like Tuticorin and Vishakapatanam. It can at best be a transshipment port. Export cargo should come from different places. There is a need to amend the Cabbotage Law. Kerala's industrial policy seems to be devoted to service sector only. It does not imbibe the export policy nor does it care for high end manufacturing sector. Secondly, export sector consist of commercial crops, while value addition is very little or meagre- spices, cashew, coir, coconut, fisheries, rubber, etc. Kerala has many political leaders, who had held very important portfolios at Delhi. Unlike other state ministers, they seldom use their position to bring giant projects to India. Textiles units and telecommunications, Software units are all over the state of Tamilnadu. Railway connectivity is 100%. Kerala is no where in the picture. Kerala’s bureaucracy is apolitical with a few with definite leanings, but none of them are development oriented. Kerala’s communism has made the state liberal in outlook. That was why Kerala executed the Mullaperiyar agreement in 1970 revising the original agreement signed on 29 Oct 1886. If Tamilnadu was in Kerala’s shoes, would they have signed this agreement? It was during Pandit Jawaharlal Nehru’s time, Kerala came into being in 1956. It was PM Shri Nehru, who dismissed the first Communist Government which was elected to power in Kerala in 1960. Pt Nehru seemed to find in Kerala’s intellectual traditions exactly what he needed in order to understand the troubled mind of India. He attributed Adi Sankara’s intellect to be the reason for his Advita thoughts (Glimpses of World History). However, in his Discovery of India, while praising Sankara’s striving to synthesize the diverse currents that were troubling the mind of India of that day, Pdt Nehru had mistakenly stated that Adi Sankara was born in Malabar, while he was actually born in Kaladi, the present day Angamali. Distorted history and impregnable virtues of a Malayli makes Kerala look for greener pastures. Kerala gets handful, but it deserves more than it gets. But it does not yearn!

Saturday, January 7, 2012

Where is India, heading?

India is a vibrant democracy, having moved spaces to become a dominant power in the World. India has been described as ‘world’s largest democracy”, thanks to the pillars performing their role in the Constitutionalism of the Country. Despite its vast masses, variety of babel of tongues, religious heritages, cultures dating back to BC, India’s unity in diversity makes it a highly democratic country. India merged independent from the ‘sun never set empire’ on the mid night of 14th August 1947. Its founding fathers believed in Republicanism, wanted a vibrant democracy and bequeathed a written constitution after hurricane discussions lasting two years before it was adopted. Called the Constitution of the 20th century, there was a Centre and states carved out on linguistic basis. People prefer to call themselves as Malayalis, Tamils, Kannadigas, Kashmiri, Bihari, Maharashtrian, Gujarati, forgetting the Indian ness in them. I am a Britisher, German, Russian, American, but the Indian is a Malayali, Gujarati, and Maharashtrian. Is it an identity crisis? What have we become? Are we, a nation of people with liberty, equality, justice for all or a bunch of opportunists stepping on each other’s liberties to achieve self centered happiness? Where is the unity that binds us in diversity? The Mullaperiyar dispute between Kerala and Tamil nadu? Kaveri water dispute between Karnataka and Tamilnadu? Telugana problem? Belgaum, Karwar, should be part of Maharashtra. Idukki, part of Tamilnadu? Metropolitan cities, which has international and blue star companies must only employ locals is the cry of some political parties. Tamilnadu has been largely developed economically and industrially with telecom companies, auto components and automobile industry, heavy industry, textile mills and garment manufacturing industries. Good 6-way lines, number of SEZs, new Ports, increased railway lines, investments from MNC, Blue chip cos, etc. Gujarat was another beneficiary when influx of companies both national and international made it economically strong. Developed states invested in infrastructure building, which reduced the gaps, constraints and costs, inviting new companies. They had a reduced unemployment problem. There were many under developed states, which could not manure industrialization due to plethora of reasons. Unemployment rose. Disparity between states caused low plan allotment and central assistance. People’s anger manifested in the form of ‘Occupy Wall Street, Occupy London, Arab Spring movement, and in India the greed of the market, disparity in income and human development”. There are two India’s. One, called the Below Poverty Line whose expenditure is limited to Rs 32/- per person per day& another Indian Corporates in the Forbes list of first twenty. Is it not what we call technocratic governance driven by arrogant credentialed experts? Laissez faire policies should not disrupt orderly economic growth. What is very uncommon in the world is common in India. Neither are WE in the past, nor in the Present. WE expect the future to redeem us. Indian Constitution has three Pillars as its foundation- the Legislature, Executive and Judiciary. Each is independent of one another and cannot encroach upon each other. The demarcation is clear and in perfect language which gives no ambiguity for confusion. The Constitutional institutions have suffered a trust deficit, more so, in recent times. Political paralysis, lack of direction and leadership, weak political system, political parties without decisive philosophy, has made the Political elite losing touch with their democratic base. The Political gridlock has resulted in Parliament’s stalemate. Policy making body ceases to function. Executive running away from legislature, the Opposition group preferring to stall the House for a whole Session, yet both of them wants Parliament to discuss. Politics of confrontation. The disruption is pre-determined and not on the spur of the moment decision upon some deadlock. If the House does not function, legislative business suffers, bills get delayed, and policy decisions get hung. The majesty of Parliament must be restored by the sane elements of all Political parties. The Parliament member can record his dissent. The party can walk out, expressing its resentment. They can agree to disagree. But the Parliament should continue to run. Is it not the thrust of the democracy? The Prime Minister is the head of the Executive. The Opposition calls him as a weak prime minister, asks him to resign, says he is controlled by remote control, he does not have Political will, etc. This is most unfair. The Ruling party members criticize the PM. The Coalition parties in the ruling group oppose what he proposes. The Regional satraps, the Chief Ministers, wantonly disgrace him forgetting protocol for political reasons. The Cabinet team is not decided by the prime Minister. They are decided by the Leaders of the Coalition parties. If one minister resigns, the minister ship should be given to another party man. Short term gains which are the vision of the Indian polity occur; country misses the long term benefits. Cash for Question scam, Cash for Vote, 2 G scam, CWG scam, and many other scams, scandals and corruption at high places, have sent down shock shivers among the people. This has been exaggerated by the TV channels, one competiting with another, and there are expert opinions pouring in by truck loads on various sides of various issues. Civic Society, NGOs, group of People has taken to the streets complaining about the democratic procedures not being applied sufficiently and stringently to vicious corruption. People have expressed their distress against the Political class as a whole. Is democracy safe in their hands, question these silent protestors. Another Policy, the ruling elite obsessed is with the emotions of minorities. Quota is often used as a Political tool even though the founding fathers used this safeguard to improve educational and employment opportunities alone. Another Pillar of Constitutional safeguard is the “judiciary” with covenants, rules, and procedures. The three important cardinal pillars like Legislature, Executive and Judiciary have to work in tandem; one does not have overpowering power over the other. Every one of these pillars justifies the ends and means of getting their way over the Constitution by usurping more powers. Are they constitutional? Matters of policy, administration, appointments, governance, are the functions of the Executive who needs to address them, and the responsibility of legislating, questioning the government’s justification, laying down rules are overseen by the Legislatures. The Courts have entered their domination into every thing, including the realms of Policy making. We should strictly follow the Code of Civil and Criminal Procedure, according to the statute, otherwise Rule of Law will get a back seat.

Thursday, January 5, 2012

Political paralysis led economic crisis

India’s Growth story can be compared to the Bharatyanatyam dance, a popular dance form in South India; for every two step the dancer takes, she retreats two steps backwards and is in the maiden point. India is suggested as one of the growing economies of the world which is expected to hit the top by 2030. 2011-12 was a year of economic upheavals and surprises. The growth rate plummeted. Manufacturing growth touched negative growth during Oct 2011. Import between April-Nov 2011 was $ 309.53 bn(Rs 14,35,304.79 Cr) against $ 231.66 bn(Rs 10,85,780 Cr), an increase of 30.24%(in $ terms) and 32.19%(in Rupee terms) Year-on-Year. Similarly, Exports during the same period touched $ 192.69 bn (Rs 8, 93,094.16 Cr) against $ 144.66 bn(Rs 661,055.88 Cr) in the same period2010, with a growth Year-on-Year at 33.21(dollar terms) & 35.10 %(in Rupee terms). The world growth was perhaps obstreperous. Political paralysis seen in United States and Europe as governments are at an inflection point. Shaky Europe tries to muddle thro’ uncertain of which path to take, and takes the uncertain path. Government in Greece, Italy, and Spain have collapsed or voted out. In Russia and France, problems persist. Tea Party movement in United States, occupy Wall Street (especially Manhatten Zucasthi Park civil disobedience programme), Arab Spring, Tahir Sq protests, fall of dictatorship in Libya, Egypt and other countries, Greece and Ireland trying to get emergency loans, show popular expression of breakdown of Trust. Growing wealth inequality, protest against greed, lukewarm legal recourse against closed banks and bankers for their demure and financial mess, have created a deficit trust and political gridlock. Niall Ferguson, a prominent Economic historian at Harvard felt that ‘for the better part of 500 years, it was the western in both sides of the Atlantic who could say they had the best economic system, best political organizational structure, and so forth. These claims have increasingly become hallow.’ John Maynard Keynes must be laughing in his grave. Everywhere, cutting spending during slump worsens the slump. Spending cuts saw further erosion in consumer business confidence, increased unemployment, and reduced growth. Like Indian political elite, obsessed over short term deficits, considered it as an actual problem, and in trying to ease the process, created the real problem- a depressed economy, mass unemployment and lower economic growth. In India, regulatory crisis, policy paralysis, divided coalition of parties, both in the Ruling and opposition political parties, ambitious regional satraps who want to carve a place for themselves, uncontested competition between states. Prime Minister calls an ally Chief Minister who refuses to come. After voting with the Government, opposing the same Bill in the other house, what Policy reform is possible. It only causes erosion of Prime Minister’s powers. The Prime Minister of India cannot act like Aristotle in Lyceum! India develops on their critical manpower talents- the service sector. That is the economic potential that needs to be managed to create capital. Pressure for Reforms arise when capital moves or labour moves. In India, both Capital and labour move. The credibility of Political system looks compromised, because of Coalition politics. Will parties become disciplined; otherwise, lawmaking Politics and contagion will drive the underperforming economy to the oblivion.