I saw some of the statements made by Mr Shashi Tharoor regarding the latest delimitation and women's reservation bill which was tabled by GOI in the parliament. He has made a very rational point about how increasing the number of seats in the Lok Sabha is counter productive to the functioning of the parliament and will make it unwieldy. I recall how Mr Tharoor was being repeatedly interrupted and were given only 7 minutes to make his statement in the parliament on the recently passed SHANTI Bill. A healthy and productive debate requires that members get sufficient time to debate in the parliament and such a large Lok Sabha will not only not allow for high quality debates, but given the tendency of several MPs to create ruckus during parliament proceedings more members will lead to more ruckus. The burden on taxpayers for additional MPs and their staff including security etc. will be an unnecessary burden. All citizens should support his stand on this issue. I would like to express my gratitude to Mr Tharror for raising this point.
Saturday, 18 April 2026
Delimitation and Women's Reservation - Message for Mr Shashi Tharoor
Thursday, 16 April 2026
Delimitation and Women's Reservation
There is uproar in southern states over the delimitation and women's reservation bill 2026. The argument being that southern states have done better family planning and hence the population growth rate in southern states is lower than northern states and these states will lose out on parliamentary seats if delimitation is done based on current population. This argument has kept the Lok Sabha constituencies fixed since 1973 delimitation which was done based on 1971 census. It has been more than 50 years or about 2/3 the life of the Republic since when the political parties in southern states have opposed delimitation of Lok Sabha constituencies based on the argument that fertility rates in southern states is less than the fertility rates in northern states and hence the southern states will lose out on parliamentary seats. It is not as if the fertility rate in northern states has not come down. There is uneven development in the country and when it comes to providing more support to the lagging states there is opposition form the southern states. This creates a chicken and egg situation because reduction is fertility rate depends on overall development and education of a region.
The argument of opposing census based delimitation is based on a flawed view of the parliamentary system under Indian constitution. It should be understood by everyone that Lok Sabha does not represent states. Lok Sabha is peoples council that is represented by constituencies. As far as representation of states in the parliament is concerned it is provided by the council of states which is the Rajya Sabha. States do not have a special status for election of member of parliaments to Lok Sabha. States are merely administrative divisions and do not represent any kind of sub nationality. New states have continuously been created for administrative and other reasons. But if they start giving rise to sub nationalism then that is not in interest of the republic. The idea of southern Indian states being at odds with northern Indian states is a constructed identity based politics of regional parties with is detrimental to national integration and fraternity between citizens of the country.
In a one man one vote system each vote should have equal weightage in the Parliament. If we have certain constituencies which have electorate running into thousands of voters and other electorates with lakhs of voters then we have an imbalanced representation in the parliament. Nobody ever objects to delimitation based on census within state boundaries but somehow when the same logic is being applied to Lok Sabha constituencies suddenly the argument about states losing out on parliamentary seats is being raised thanks to regional politics. As if an MP elected for a parliamentary constituency in northern India is suddenly an enemy of the citizens in a constituency in Southern India and will not act in national interest. What ever regional or state interest exists are dealt with by the state governments which have sufficient powers. Member of parliaments elected from any part of the country should make decisions on national interest and as mentioned earlier the states are already represented in the Rajya Sabha which has an indirect election.
Having made and argument in the favor of delimitation based on census which is mandated in the constitution anyways I would like to make a separate argument against this bill. The number of seats in Lok Sabha since the first delimitation based on 1951 census have increased by approximately 50 members. We already have a large parliament. In various debates over laws in the parliament the MPs hardly get anytime to make their statements. An MP hardly gets 5-10 minutes of uninterrupted time to make his or her arguments. If the number of seats is increased from 543 to 816 that is a 50% increase in the strength of the Lok Sabha. This will certainly damage the quality of debate in the parliament. The financial burden on the tax payers of country for these additional VIP members and their entourage which lives on the exchequer will also increase. The idea of women's reservation of 33% and the sub reservation amongst women for SC/ST communities is also an unfortunate continuation of the one medicine of every ailment principle which has afflicted Indian political class. We need to now move away from reservation politics to save the republic. There are no structural nor legal barriers to women entering politics in the country. If in any constituency and electorate can benefit from a more suitable male candidate to represent them then why should they be limited for the choice of only female candidates. It is not as if there is any bar on women from contesting in any unreserved seats against male candidates. If political parties want to increase women's representation they should do so at party level by giving more tickets to women. We don't need to reserve seats in the parliament for this.
India should move on from such social engineering projects and instead of doing down the road of further reservations its time to do away with reservations starting with OBC reservations for a more merit based equal treatment under the law.
Tuesday, 17 March 2026
India's new nuclear liability law - SHANTI Act, 2025
On 17-18 Dec, 2025 the Indian parliament passed the Sustainable Harnessing and Advancements of Nuclear Energy for Transforming India (SHANTI) Act. There was little debate in main stream media on this bill before it was tabled. In prime minister's independence day speech in August he had mentioned about reforming India's nuclear power generation sector. Ever since the Indo US nuclear deal which was signed in 2008, it was hoped by US nuclear energy suppliers that they will be able to participate in growing Indian nuclear energy sector. After all new nuclear power plant construction had almost ground to halt in US ever since the 3 mile disaster in 1979. New reactor projects started only after 2013. India was seen as a new untapped market for US companies.
The Fukushima nuclear disaster of 2011, however, put the nuclear power industry world wide under greater public scrutiny. Ever since the start of nuclear power generation in the mid of 20th century this industry has thrived on socializing the liability of nuclear power accident which is significant in case of a disaster and largely seen as uninsurable without public funds. The industry in most of the countries has followed a capped operator liability regime with channeling of all liability to the operator and no liability on the suppliers. Countries where public opinion has been sensitive to nuclear disasters like Japan, Russia, Germany and Finland follow a strict, no fault, unlimited operator liability regime. Strict and no-fault means that the claimants need not prove that the operator is at fault of the nuclear accident to be able to claim damages. Unlimited liability means that there is not cap or limit on the liability of the operator. It should be noted that even in countries where a capped liability regime exists, a steady movement towards increasing the cap amount and shifting more liability to the industry from the society is in progress.
The estimated total cost of the Fukushima nuclear disaster is in the range of $ 190-200 billion. The Japanese Law for compensation for nuclear damages has unlimited, strict no-fault operator liability, the operator needs to provide a security deposit of 120 billion Yen to the government and separately also have a liability insurance. Any person suffering from nuclear damage has priority over other creditors in respect of compensation from the amount provided by the liability insurance contract. There is right to recourse to a third party, where the employees of a nuclear operator have suffered nuclear damage and such damage was caused intentionally by a third party, the nuclear operator who has paid compensation for work accidents to the employees or families of the deceased shall retain a right of recourse against such third party.
The Price-Anderson Act of USA provides for $13.6 billion no fault liability without cost to the public or government Interestingly under the US Energy Independence and Security Act 2007, if an accident occurred outside the USA, nuclear suppliers would be required to reimburse the federal government for the amount allocated to the USA under the CSC’s formula for second-tier coverage.
1) The strict no-fault liability clause which was part of the CLND act 2010 has been removed from the SHANTI Act. Earlier law had this clause in the Liability of Operator section "(4) The liability of the operator of the nuclear installation shall be strict and shall be based on the principle of no-fault liability.". This clause has been totally removed from the SHANTI ACT
2) The Operator liability for small and medium power plants has been reduced by introducing a graded system in which plants less than 150 MW the operator liability has been reduced to merely Rs 100 Crore from a Rs 1500 Crores in the earlier act of 2010. The maximum lability for plants more than 3600 MW has been increased to Rs 3000 Crores. One would expect that with inflation and in light of global trend the liability amount should increase not decrease.
3) The operator right to recourse to a supplier liability has been removed. CLND had the clause " (b) the nuclear incident has resulted as a consequence of an act of supplier or his employee, which includes supply of equipment or material with patent or latent defects or sub-standard services; ". This has been removed.
4) Patent regime in the nuclear sector has been changed. Since 1962 any invention in the field of nuclear energy was not patentable. As per patents act 1970 "No patent shall be granted in respect of an invention relating to atomic energy falling within sub-section (1) of section 20 of the Atomic Energy Act, 1962." As per clause 38 of the new law inventions in nuclear energy are now patentable. "38. (1) The Central Government may grant patents for inventions which in its opinion are for the peaceful uses of nuclear energy and radiation:"
Patent restriction ensured that all innovation and development of technologies in nuclear science remained strictly in public interest. It did monopolize the nuclear energy sector, limited private investment and but it also enabled India to freely develop technologies in public interest which, may have been patented outside of India and hence denied to it in practical terms. The removal of the patent restrictions will benefit companies to be able to market their patented technologies like fuel in India. Reduction of operator liability to almost a pittance for small reactors will transfer the liability for Small Modular Reactors, which is seen as a new growth sector, from the industry to the society. Removal of supplier liability clause will remove the operator's right to recourse against the technology supplier for any disaster, opening the door for foreign suppliers to freely enter the nuclear energy market with lesser financial risk.
However what stands out most egregiously is the removal of the strict, no-fault, liability clause from the nuclear liability law. If following the international standards of liability was the justification of removing the supplier liability clause then the strict and no-fault liability clause is a long standing feature of nuclear liability laws world over. Its removal is quite inexplicable. So is reduction of liability cap where as the world over the movement is towards increasing the cap and moving more and more liability towards the Industry. Unlimited operator liability is also long standing international practice followed in major Nuclear energy states like Japan, Russia and Germany. One could justify its introduction on the account of the very high estimated cost of the latest large nuclear disaster which was in Fukushima nuclear plant. In fact the central government in the Financial Memorandum section of SHANTI Act it self states "Clause 14 of the Bill provides for the liability of the Central Government in the event of a nuclear incident. However, as the actual liability in the event of nuclear incident would depend on the magnitude of the incident, it is difficult to estimate the cost of liability at this stage. The Central Government has established a Nuclear Liability Fund for the purpose of meeting its liability under the Bill. "
Finally I would remind the reader to what I had explored in my previous article. In last few years one person from India's nuclear energy establishment who stands out in promoting nuclear power industry is Dr Anil Kakodkar. He has been most active in his public writings about building small modular reactor and thorium based fuel. It should to be noted that Dr Kakodkar has been associated with a US company "Clean Core Thorium Energy Inc" as an advisor for development of a thorium based fuel which has been named ANEEL after him. He has been seen promoting private investment in the nuclear power generation sector in India, both before and after the SHANTI act has been passed by the parliament. Clear Core Thorium Energy had a partnership with India's L&T and NTPC is also expected to acquire a minority stake it in. This company is seen as the first beneficiary of the new SHANTI Act. For More about ANEEL fuel read here.
PS: Readers would be interested in the parliament debate on SHANTI Bill. The speech by Mr Shashi Tharoor stands out in articulating many relevant points.
Tuesday, 30 July 2024
On Sixth Schedule for Ladakh
I can sense some red flags in this demand from Ladakh for inclusion in the 6th schedule of the constitution which is currently applicable to certain states in the north-east. I somewhat understand why center government is reluctant to do this. In negotiations with Ladakh representatives center had proposed art 371 instead.
Tuesday, 31 December 2019
Sadhguru on Citizenship Amendment Act
His entire explanation can be seen here.
Unfortunately the same journalists who have been spreading misinformation on CAA have started questioning Sadhguru's statement as factually incorrect by nitpicking on irrelevant points rather than understanding the thrust of his argument.
I clear the air here and explain how Sadhguru is absolutely correct and those questioning him are engaging in dishonest journalism driven by prejudice and mala fide intent, which can also be gauged from the disrespectful tone and tenor of their statements against a respected religious figure like him.
2) Sadhguru cites an incident of his visit to Jwala Mata temple in Baku where he met a Hindu whose wife had been abducted, converted to Islam and married to someone else on same day. He mentioned in context of this incident that Pakistan did not recognize Hindu marriages which is why this man had no legal case to protect his wife. This was an incident in past not recent. In 2016 Sindh province passed a Hindu marriage act and in 2017 rest of the provinces got a Hindu marriage act. But this in no way changes what Sadhguru said. This is a clear case of persecution of Hindus in Pakistan. Even the current law of Pakistan is being criticized for its annulment clause which causes the marriage to be annulled if any spouse converts to Islam. This is a loophole that can be exploited to abduct and convert even married Hindu women. . There are several cases of abduction of Hindus girls reported from Pakistan.So Sadhguru's example of persecution of Hindus stands valid.
3) A propaganda is being spread that the Citizenship Amendment Act does not mention persecution hence it is not about religious persecution of minorities in Islamic countries in subcontinent. Fact is that in the statement of objects and reasons of the act it is clearly mentioned that religious persecution is the reason. There are associated government notifications on Passport Act and Foreigners Act of 2015 which clearly mention exemption based on religious persecution or fear of religious persecution. When there is overwhelming evidence of an obvious religious persecution based on state discrimination in these countries then such media propaganda is condemn able. Sadhguru in fact says that discrimination in these countries is state defined by law, because of the Islamic nature of these states. So he is again absolutely correct.
4) Sadhguru mentioned that police response has been relatively restrained compared to the kind of riots taking place. He is absolutely correct on this point. One need not go to far back in history just compare this with how 36 people were shot dead by Police after Baba Ram Rahim's followers rioted in Haryana in 2017. Now consider at the Police action in Jamia Milia Islamia university. Sadhguru mentioned that if students pelt stones then won't police enter the university to control the crowds. A lot of noise has been created in police action in Jamia Millia. It must be noted that even courts have not entertained such motivated arguments of police excesses. It is interesting to note that police has sought access to the CCTV footage from the University which has still not been provided to them. What's the justification for this denial? What is there to hide? Sadhguru is again correct in saying that police action was going to happen when there is rioting and even innocents will unfortunately get caught in this action.
5) Sadhguru is correct when he says that rumour are being spread that Muslims will lose their Citizenship because of CAA. This is a malicious propaganda that many people including students have fallen for. If they simply read the act they will know this is not the case. Thus act simply provides a faster path to citizenship to persecuted religious minorities from 3 Islamic states. Does not affect ant Indian citizen. Does not adversely affect anybody's case for seeking citizenship of India under existing process.
6) Sadhguru was asked about NRC so he responded with his views about it how every nation needs to know who its legal citizens are. It is obvious this is needed. He mentioned that for proving citizenship by birth several documents can be accepted. People are arguing they don't have documents. So he question who are these people who have no ID documents. How is it possible for people in this day and age to have no documentary proof. He further states that people who don't have documents can produce witnesses. The possible list of documents can clearly be deduced based in Assam NRC. Spokesperson of home ministry has recently tweeted that witnesses may be considered for illiterate people who don't have documents and a process around that be created. So Sadhguru's entire reply to the question on CAA-NRC is absolutely correct. Those trying to nitpick are dishonest and reflect the same kind or media propaganda journalism that has spread disinformation on CAA in the country.
Tuesday, 24 December 2019
Information War on Citizenship Act
Wednesday, 17 April 2013
Personal Tragedy V/S National Tragedy
Sanjay Dutt was convicted by the supreme court for illegal possession of banned weapons and sentenced to the minimum sentence prescribed by law. Then he along with some other accused punished for similar crime were given 1 month to surrender. Today Sanjay Dutt got another reprieve to surrender after another 4 weeks. He wanted to finish his films before going to jail to serve his sentence for which he wanted 6 months reprieve. So the court in supposedly "humanitarian grounds" gave him 4 weeks with no further extension and he accepted. All in all this whole episode gives the appearance of a bargain for delay rather than humane gesture. If the producers have money locked in on Sanjay Dutt then the question here is of money not of "humanitarian grounds". A mother who has a child appearing for his school exams probably deserves more humanitarian gesture for month delay rather than a movie actor who wants to finish his films so that he and his producers do not suffer a loss.
Whatever be the real truth, in the end this case gives an impression of deliberate delay to keep a rich, politically connected celebrity out of jail for as long as possible, rather than one of delivering justice where justice is due. Mr Dutt's claiming suffering due to inordinate delay does not cut the bill; after all Mr Dutt did not spend his years out of jail, since he was first arrested, doing national or social service to deserve a reprieve. He was busy making money, living the good life and working for entertainment of his movie loving fans. It does not quite cover for the loss that the victims of the 93' Bombay blast had to suffer. Given the circumstances under which he has been found in illegal possession of banned weapons, he has knowingly or otherwise been linked with the entire bombing episode which he should have certainly avoided.
Whatever be Sanjay's personal tragedy it does not cover for the national tragedy which people of India have collectively suffered. The court seems to have erred, but people are not pleased and the politicians along with the government of Maharashtra should be forewarned, not to act on Sanjay's mercy plea in a way which will lead to dissatisfaction among the people of Bombay, because they are in no mood to forgive.
Tuesday, 19 March 2013
Kashmir’s unsettled business - Don't tinker with the constitution
Sunday, 28 October 2012
Salman beats Anand to the post
So we know now that Mr Anand Sharma stays in his post as the commerce minister while the surprise elevation of Mr Salman Khurshid to the post of external affairs minister is the confirmed news now. This means that the Rs 71 lakh scam was too small to be of any bearing on the decision of his elevation after all. More interesting news doing rounds was about the possible exit of Mr Jaipal Reddy from the oil and gas ministry after his showdown with Reliance Industries. The influence of big business on the decisions of the central government looks quite ominous. All this does send a bad signal to those who perform honest discharge of their duties but never the less this is just the fact of the day.
It was interesting to note the oath that the cabinet ministers take during the swearing in ceremony which President Pranab Mukharjee presided on. It remains to be seen how well they keep the oath to perform their duty faithfully and conscientiously, without favour or fear, affection or ill will, in accordance with law, upholding the constitution of India, without revealing the secrets of their office to any person with exception for the due discharge of their duty. An oath they have taken in the name of God hopefully with full knowledge of the responsibility of the posts they are going to hold. Except for the shaky hands of Mr Harish Rawat signing the oath I did not see anyone else being overwhelmed by the occasion at least. But then a lot goes on behind the scenes.
Saturday, 27 October 2012
The Performer gets a Promotion?
As I had written in a previous post there had been considerable corporate and US government lobbying to get a fovourable result in mulitbrand retail FDI policy. Earlier The Hindu had published a news story based on certain Wikileaks exposed diplomatic cables where Mrs Hilary Clinton was very interested in knowing what was the position of Commerce Minister Anand Sharma on Multi-brand retail. I had also quoted Mr P Sainath's article which was critical of the decision making process in the present government and it susceptibility to foreign influence. I had also written how Mr Pranab Mukharjee's presidency had the effect of paving the path to the FDI reforms, and also helped in stalling GAAR, and reversing the retrospective amendments to Income Tax act which had been brought about by him in his capacity as finance minister, to remove a loophole in the tax code which was being used by foreign companies to avoid paying capital gains tax in India.
Please be reminded that I had also written about mainstream Indian media's partisan role in this affair. It is evident that particularly the media company which owns the The Times Of India and Economic Times also has investment via 'private treaties' in the Future group companies which will benefit from the policy changes of allowing 51% foreign investment in multibrand retail.
The affair gets even murkier when a reader is reminded about another event which has occurred parallel to all this which was about a possible breach of the previous FDI policy by Wal-Mart and the Bharti group. Ms Vandana Shiva had filed a PIL in Delhi high court questioning how Wal-Mart had used a circuitous route to invest in Multi-brand retail when the policy at that time did not allow foreign investment. Delhi High Court had asked the government to respond but alas before the date of response the policy itself was changed to allow FDI in retail. When the time to appear in court came the government responded that in the light of recent policy changes this PIL should not be entertained any more and Ms Siva also obliged by withdrawing the case. Recently CNN-IBN reported a story on this. Later PM Manmohan Singh asked Commerce Minister Anand Sharma to investigate any possible wrong doing by Wal-Mart. This is very curious and very murky indeed. I have written extensively about this in a previous post tiled 'Wal-Mart something's not right'.
But the end result never the less is that Mr Anand Sharma has delivered to the benefit of the lobby which wanted FDI in multibrand retail and Mrs Hilary Clinton would have been delighted, as is also evident from the the visit by Mr Ben Bernanke and Mr Geithner. Promotion is due and what better role to play than that of Foreign Minister. We have to wait until tomorrow when it is formally announced but Mr Sharma is the right man who can surely deliver and is an appropriate person to lead the New Order. A 'reform' in the foreign policy is perhaps long over due. Iran anyone?
Wednesday, 17 October 2012
AK 47 and His Guerrilla Tactics
The assault has so far been successful in hitting anyone who hasn't been adequately protected. But then who could possibly be adequately protected? The only protection that existed was the unwritten rule that goes "you scratch my back and I will scratch yours". Mr Kejriwal is an outsider who perhaps did not receive favours from anyone in particular and so can shoot whoever he wishes whenever he wishes and at whatever pace he wishes. The pace can be fast because the targets are many and the evidence is probably ready pickings with so many disgruntled individuals willing to provide them. This makes him as deadly as the famous 'Avtomat Kalashnikova' assault weapon.
Now with the question of his lethality settled lets visit the aspect of his tactics. He has been employing what has been widely described as a 'shoot and scoot' or 'hit and run' tactics. With the limited resources he has at his possession he cannot be expected to organize large rallies in the hinterland of the country. He cannot fly his members cross country in helicopters, distribute printed material or use any of the traditional means of spreading political message that the political parties use. He had to reinvent his tactics to suit the size of the problem he is facing and keeping in mind the limited resources he has at his disposal. IAC is incapable of getting hold of one issue and taking it to its logical conclusion. Conventional methods did not work for them. They tried to get lokpal bill implemented but they failed at that. Now he need not take anything to its logical conclusion. He simply has to fight a war of attrition with the established players by using the guerrilla tactics which are at the least cost to him and IAC, and cause discomfort to his political opponents which are in fact, the entire political establishment.
The medium of his attacks is the news media. Sensational exposures are the bullet he fires. His target of choice are the public figures with questionable records of probity and that explains the title of this post.
PS: Here is an interesting cartoon that appeared in the Hindu on 18th/Oct just a day after I wrote this post. It is very much on the lines of what some people are saying about Mr Kejriwal: AK-47
Tuesday, 16 October 2012
The Hindu : News / National : Senior official probing Vadra-DLF land deal shunted out
I was of the opinion that raising issue of corruption in the media or by political parties alone would not solve the problem. What was needed was for our administrative institutions to act. Here is an example of what happens when some upright officer does what is essentially his duty. When an officer starts a suo motu inquiry into a wrong doing he is transferred out.
Tuesday, 9 October 2012
Mr Robert Vadra
Being born in a political family makes you a politician yourself, that is a great truism of Indian Politics. It is obvious that people will approach such a person for favors whether he or she obliges such approach is another matter. Being married into a political family is also not too far off. Mrs Sonia Gandhi's first credibility as a politician was that she was married into the most powerful political family in India. Can some wrongdoing be conclusively proved? I do not know but the suspicion that sweetheart deal from DLF to Mr Vadra is on the only grounds that he is related to Mrs Sonia Gandhi and was likely to enter politics himself just like her, is not just a suspicion it is a truism. As Mr Chidambaram has insisted on a quid pro quo he has obviously raised a question which cannot easily be answered. May be it cannot be proved easily, otherwise it would have already been proved. But it is universally understood that a sweetheart deal involving a public person hints at the presence of corruption.
In many countries when you open a bank account you have to disclose if you are related to a public figure. I do not know what the disclosure norms are in India. If we don't have these norms then we should. The debate regarding DLF-Vadra deal should not be limited to Mr Vadra and Congress Party. What can be proved in Mr Vadra's case is a separate issue. If a wrong doing has possibly happened but it cannot be proved, or was not brought to the attention the appropriate institutions well in time and with enough evidence to be acted upon, due to a lack of proper disclosure norms and tracking of earnings and assets of people related to public figures, then that is the moot question. The raising of this issue by India Against Corruption against the first family of Indian politics is just one of the many questions that can possibly be raised about the assets and dealings of many other individuals related to powerful public figures. But nothing can possibly be done as Mr Chidambaram has highlighted if a wrong doing cannot be proved or quid pro quo established. The job of proving an alleged wrong doing is not with a whistle blower it is the job of the agencies responsible for tracing financial impropriety. Do they have the laws, the resources and the freedom to do this?
Monday, 8 October 2012
The Hindu : News / National : Behind Robert Vadra’s fortune, a maze of questions
"Mr Vadra should not allow his name and reputation to be tarnished. He should request
the government to insitutean inquiry with 3 retired supreme court judges headed by
Justice Ganguly. That would put an end this libelous charge against a very innocent
man." from: P.N.Shreeniwas
Justice Ganguly was the 2G Judge
The Hindu : News / National : Behind Robert Vadra’s fortune, a maze of questions
The Many Theories of Economics
I have encountered a dilemma. Over a period of almost a month I have been writing about the suspicions I have about the recent economic reforms that have been announced. If you have been reading my posts then you would be well aware that I am questioning the real intent of these changes, the manner in which these changes have been introduced i.e. in my opinion in an undemocratic way. The more I think and write about it I find myself heading down the path of questioning the validity of the very theory of neo-liberalism which is the guiding principle for these reforms. I am not an expert in economic theories and political science to be able to authoritatively comment on the validity of this theory. Yet even with this impediment I cannot possibly sit silent on this issue because of the very injustice I saw in the implementation of this change recently in our country.
I can see the euphoria of the very vocal 'experts' and also the disdain for the very democratic opposition political parties in the mainstream media. The opposition is being termed as obstructionist. Yet I am perplexed as to why I have missed the entire debate on the merits and demerits of the policies in any meaningful way? Why for the last 20 years I have not heard what used to be an often repeated jargon describing India in the 1980's, the grand old concept of a 'Mixed Economy'. We hear all the new jargons from the globalization school of thought, and only those. Am I living in a world cutoff from this debate or has everyone in the general population been cutoff from this debate? Is it that the need for a debate is not required because the 'success' of the 1991 reforms imposed by IMF under neo-liberal framework have made any debate unnecessary?
Here in lies my dilemma. If I continue this path of writing about this issues I am faced with the impediment of my lack of in depth knowledge of the many theories of economics to be able to comment authoritatively on this subject, and yet if I sit silent on this then I am well aware that I am not hearing in the media from any expert who is currently vocal and making an argument of any other alternative, at least not in India. To break this dilemma I have to search what is the debate in the home countries of the neo-liberal school of thought.
When I embark upon my study of what is being argued in the west about these principals I find that there are a plethora of arguments being made on both sides of the debate. I am also made aware that these debates are not new. These are old debates that have gone on for several decades and are even today being carried out in the west, for instance on the back of occupy wall street protests that happened earlier this year. There is also a resurgence in the USA for a search for an alternative to the current model of economic development post the 2008 financial crisis. These debates are happening everywhere I am sure even in our country but not so visibly. Economists like Joseph Stiglitz, Paul Krugman or Amartya Sen for example do not fall in the neo liberal school of thought. There is even a resurgence of study of Marx and the use of cooperative model in agriculture. The difference for us is that these debates are not visible to us in our mainstream media.
These are hard subjects. It is not easy for a public opinion to be formed on these issues. It is difficult to engage in these debates with the masses being involved. They seem to require a certain level of knowledge and understanding, which unless we get someone like Amartya Sen explaining us, will remain limited to the elite circles. To write about these issues with any authority I will have to dive into the world of economics and political science and I will have to start with one of the many schools of thoughts and complete the full circle to be able to come to a conclusion on which theory appears most viable to me. A daunting task indeed for a layman to undertake.
There have been many economic policy thinkers in the western world who have influenced the government policies around the world, Adam Smith, Karl Marx and John Maynard Keynes are described as the most important. Since I had mentioned Kar Marx earlier let me start with Das Kapital(Capital). There is a resurgence of the study of Capital in the west. Prof. David Harvey from the City University of New York has been teaching Capital for the last 40 years. He has made his video lectures public and that was a good place for me to start. Prof. Harvey describes Capital as one of the great studies of capitalism. He also mentioned in one of his lectures that this was only an incomplete work of what Karl Marx actually wanted to do. Had he finished his work we would have been left with a body of work of epic proportions. But even the three volumes of Capital are a great source of understanding capitalism. I must set aside the fears of my capitalist friends that I am not a Marxist just as Karl Marx himself had said when questioned that he cannot be described a 'Marxist', as the meaning that word had become to be.
To a patient reader who has followed me to this point in the article I would give an example of what I found was of relevance in Capital. A couple of views that I could immediately relate to and which you would also have come across as a criticism of some of the neo-liberal policies without necessarily being classified as 'Marxist' are following:
1) A thing can be a use value, without having value. This is the case whenever its utility to man is
not due to labour. Such are air, virgin soil, natural meadows, &c
My Interpretation> Commoditization of water and some other natural resources which should be free is against this principal that not everything of use value should be treated as a commodity of capitalism. So the neo-liberal theory of privatize every thing including our water resources is fraught with danger. We should not set a price tag on everything some things are gift of nature.
2) The use values, coat, linen, &c., i.e., the bodies of commodities, are combinations of two
elements – matter and labour. If we take away the useful labour expended upon them, a material
substratum is always left, which is furnished by Nature without the help of man. The latter can
work only as Nature does, that is by changing the form of matter.
Nay more, in this work of changing the form he is constantly helped by natural forces. We see, then, that labour is not the only source of material wealth, of use values produced by labour. As William Petty puts it, labour is its father and the earth its mother.
My Interpretation> One understanding of this can be the we sometimes justify the pollution and destruction of nature for economic progress(material wealth) but the fact is that without mother earth, material wealth cannot be created. Thus economic growth at the cost of global warming will ultimately lead to reduction of material wealth. There can be no child without the mother. So this is one issue, on which the scientists and the economists should be together, not against each other. The neo-liberal theory that requirement of environmental clearances from government are an impediment to growth and that we cannot take a hit on economic growth due to environmental concerns miss one of the basic premise of economics.
One can go on writing about these issues. But a single post can have only so much information so as to keep the reader involved. All I would like to leave the reader with is that economic policies which we are following under great corporate and foreign government influence, in this push for reforms, at the cost of due democratic process, are not the only policies that have been proposed by economic theorists. There is lot to learn even from a supposed anti capitalist like Karl Marx on how to run a capitalist economy. There isn't a case for us to blindly rush to seemingly transformation changes based on some of the economic policies pushed by the west, which are being questioned in the west itself. I meanwhile have the task of understanding economics as best I can, to come to a conclusion as to which policies I should support myself. Since the debate between experts on this subject is missing from the mainstream media, I have no other way of knowing.
Saturday, 6 October 2012
Why GDP growth alone does not make a nation better
We are all aware that the GDP growth percentage of China is more than India's and we are all witness to the euphoria that existed in media when we were seen to be growing at 8 to 9%. Not a day goes by when we don't have policy experts and business Czars(Maharaja's would be more appropriate) and financial analysts telling us how we had lost the plot when the growth rate fell, and how we can still reach that 9% target if we get our policies right. Readers would be aware of another jargon that has been often reported in media which goes as the 'Hindu Rate of Growth' describing the pre-reform period in India's economic growth. Prime Minister Manmohan Singh had mentioned in August this year that GDP growth is a matter of national security.
The argument in support of GDP growth is made that growth has lifted millions out of poverty and has the potential to lift millions more. Lifting people out of poverty is a compelling argument, but the fact is that the current poverty line set by the government itself is disputed by many. There are many criticism of the Below Poverty Line and the poverty figures that I have read and I can make an argument about that. But I don't want to make criticism of governments BPL the main premise of my argument in this article. But I would like the reader to keep in mind that by our own estimate on the basis of our own poverty line, there are still 30% of the population who are poor. Now I would like to draw the reader's attention to the curious case of a nation which has these figures(est. as of 2011) of economic development.
Utopia
- GDP growth rate - 7.1%
- GDP per-capita - $19,600(PPP)
- Industry's contribution to GDP - 89.7%
- Agriculture's contribution to GDP - 3.6%
- Capital Investment - 49% of GDP
- Budget Surplus - 1.7% of GDP
- Public Debt - 4.6% of GDP
- GDP growth rate - 7.2%
- GDP per-capita - $3,700(PPP)
- Industry's contribution to GDP - 26.4%
- Agriculture's contribution to GDP - 17.2%
- Capital Investment - 32.8% of GDP
- Budget Surplus - -6.7% of GDP(deficit)
- Public Debt - 48.5% of GDP
PS: There was no disrespect intended to the people of Equitorial Guinnea. I was sarcastic in my assessment of the democracy and development record there because in an interview to CNN I heard Mr Obiang describe the country as not a dictatorship but a Republic and described himself democratically elected.He even mentioned that he will remain in power as long as the people wanted him to.
It has been alleged that the oil wealth of the nation was siphoned off to the notorious Riggs Bank by the corrupt politicians and administrators in Equitorial Guinnea. I had to make this comparison because many middle class Indians thanks to the recent boom in our economy appear to have forgotten that the poor in India are in many aspects poorer than sub-saharan Africa despite the recent boom in our economy. The effects of corruption and concentration of wealth on the poor are not lost on us. Equitorial Guinnes to me is a typical case of failure of the 'trickle down' theory. I need not be an expert on the subject to make this assertion.