Economics, Politics and Other Earthly Matters

WESTERN MEDIA ABANDONING BUSH? October 29, 2005

Is the Western Media abandoning the War onTerror?

Yesterday sitting on couch, I was enjoying the misfortunes of the US Administration in Washington – first with the withdrawal of the nomination of Harriet Miers and then the indictment of ‘Scooter’ Libby the aide to Dick Cheney. As usual Dubya, gave a speech to the military officers in Virginia – probably the only souls who are still patiently listening to his War on Terror story.

Then something amazing happened – Beeb while commenting on his speech used a phrase which surprised me – ‘what US calls the WAR ON TERROR’. I think the significance of this phrase cannot be understated – the media which has willingly played along with the Bush Administration through its lies and deceits, has now started taking a more objective view on his Iraq/foreign policy. The paintbrush of legitimacy granted by the media, is now fast vanishing. Sanity again – in the aftermath of excessive rhetoric.
    

INFY, GOWDA AND THE MEDIA October 23, 2005

http://economictimes.indiatimes.com/articleshow/1271803.cms

Prime Ministers are expected to be dignified in their statements, more so when they become ex-prime-ministers. But Deve Gowda (DG) is defeating those expectations. He is involving himself in petty mud slinging (and that too throwing mud at a respected Indian entrepreneur).

At one point DG says that Infy has created only 22,000 jobs when the software industry has created around 300,000. It is a great achievement, contributing around 7% share of the job market. If he expects any better, either is plain foolish or he is a Marxist utopian.

As to the allegation of land grabbing by Infy, DG is no judge to execute a summary judgment on this issue. Media, ever hungrier for news, plays willingly in transmitting that summary judgment to the public. There is thin line between genuine investigative journalism and being a willing accomplice in the game of mud-slinging. Media in this case, as in most others, is caught on the wrong side.

DG should well stop interfering in the business of business and instead concentrate on something which he does best. Sleeping!

MUMBAI TAXI UNION October 19, 2005

Australian School of Economics October 17, 2005

I was just surfing through the web when I bumped across this website carrying a critique on the Austrian school of thought. Worth reading it.

When the American Press Slept! September 30, 2005

I came across a very interesting article by ‘that Bush baiter’ Noam Chomsky.

http://www.chomsky.info/articles/20050704.htm

One paragraph enlightened me on the more devious agenda on the American invasion of Iraq. I knew that war on Iraq was all about oil security. But the fact that securing oil supply in Middle East to create a leverage with other world powers (Europe, China etc) was a sub-agenda would beat the lights out of the most shrewd of the foreign affairs strategists:

Shortly after the invasion of Iraq, Zbigniew Brzezinski, one of the more astute of the senior planners and analysts, pointed out in the journal National Interest that America’s control over the Middle East “gives it indirect but politically critical leverage on the European and Asian economies that are also dependent on energy exports from the region.” If the United States can maintain its control over Iraq, with the world’s second largest known oil reserves, and right at the heart of the world’s major energy supplies, that will enhance significantly its strategic power and influence over its major rivals in the tripolar world that has been taking shape for the past 30 years: US-dominated North America, Europe, and Northeast Asia, linked to South and Southeast Asia economies.

The press around the world has been crying foul over the Bush’s plan of war over the last 3~4 years – be it the WMD or the prisoner detention at Gauntanomo Bay in Cuba. But what about the American press – they tagged along with the views of the Administration, let themselves blinded during the illegal excesses at the ‘concentration camps style’ prisons and in process failed the American public. They were the co-conspirators of the Administration – they forgot that patriotism is not standing by the President but standing by the values that make America. And in this process of moral debauchery they have committed a crime unpardonable.

History will consider these years as ebb of American journalism – a real low point considering the it was a disclosure by the American press that lead to the resignation of the American President only quarter of century ago. But then 25 years is a long time – empires have reduced to ashes and new powers born in such a short span. I only hope that the press in Americado take heed and re-assert themselves before the entire nation descends into a phase of moral and ethical bankruptcy.

Economic Freedom or Political Freedom – Which one is more critical for doing business September 28, 2005

Caught an early morning flight to Hong Kong. Was reading the International Herald Tribune which ran a story on red-tapism in the Indian sub-continent.

http://www.iht.com/articles/2005/09/27/bloomberg/sxmuk.php

I agree that red-tapism in India is rampant, and starting a business in India for someone ,who does not have the right connections, is a real tough task. I am sure all the budding entreprenuers must have faced this problem in India.

They also ran a critique of the editorial on a similar issue carried by Times of India -

Non-democratic states are by definition adhocracies run not on principles of social equity and respect for law but on the whims of the ruling elite,” the Indian newspaper said.
“The very fact that democratic India has codified norms for doing business is a guarantee for fair trade practice which can’t arbitrarily be short-circuited by all-powerful vested interests,” the editorial said.
At best, it’s a spurious argument. At worst, it’s an excuse for doing nothing.

I think I will go along with IHT in this analysis (We do need foreign press in India – Fourth Estate is banned for foriegner in India currently – some outdated 1950 law or policy says so). Come to think of it, how long does one need to wait to get power connection for a residence in India? Anyone’s guess ! Red tapism is what is killing India and I would swerve by Adhocracy if it meant getting things done faster.

Once More a Constitutional Post is disgraced September 23, 2005

Once more a stinging criticism on the Indian polity.

http://www.indianexpress.com/full_story.php?content_id=78673

It is indeed a shame that the Judiciary has to interfere because the entire moral fabric on Indian polity is corrupt.

A true shame for all the politicians….reminds me of a time when even the President’s post was disgraced by a statement made by the incumbent – ‘I have no shame even in brooming the floor if Indira Gandhi wanted me to do it’

‘‘Isn’t it a fact that the Governor’s office has largely become a political post or an appeasement post? Otherwise, why doesn’t the various governments accept the proposals of the Sarkaria Commission?’’ – Justice Pasayat

112723194735922202 September 20, 2005

INDIA – A PERSONAL FIEFDOM OF THE POLITICAL CLASS

Come 2006 and we will enter the 60th year of nation`s Independence. But time and history have proved that nation`s independence does not necessarily mean the independence of common man. Instead of a foreign ruler, we are left at the mercy of nepotistic rulers – who further not the nation`s but their own interest. We had suffered one of the worst fates – either in form of dynastic rule or by rent seeking politicians, be it at the federal level or at the state level.

If we follow the Maslow`s theory of hierarchy of needs – political independence (an actualisation need) without economics independence (a more base physiological need) means nothing to the common man. That is precisely the area where our politicians have failed. Inspite of the political independence and universal franschise, a large proportion of our populace cannot even have two square meals a day.

What use is this political independence to the common man – who has to face the scourge of the famines and droughts, who has to live a life without basic necessities like food, clothing, water, electricity. Due to lack of economic independence, the common man today lies at the mercy of the politicians. Hence the we find the favors like free electricity and food subsidies are used by successive governments as means of bribing the voters.

For the entire political class, it is better when a large proportion for the population depends upon them for the handouts – at the same increase their hold over the country and in process monopolising political power. That is the bane for India – the political economy of a poor democracy. It is in the very interest of the political class to keep the citizens – illiterate, uninformed, poor, dependent, malnourished.

And even though we have apparent political independence (universal franschise) in reality all the powers vests with the government – and hence with the political class. Once the politician is elected to the House, there is very little the people can do, to hold him to his promises or his decisions – until his 5 year term is over. Hence once elected the entire House it is virtually indepedent of the general populace giving the political class tremendous powers without the corresponding responsibilities. Over the past 60 years it is this veryloophole that every successive generation of political class have used to fool the people and become the rent seekers.

The government has to stop interfering in all commercial and business activities apart from taxation, customs and monetary policies. Indepedent regulators can be appointed for industries in which some form of regulation is need. Regulation in an industry should be a matter of exception and not a regular feature. The incentive for the political class to ‘regulate’ industries come from their rent seeking behavior – giving them in the process the financial clout which they can use for bribing voters with freebies.

It is a bitter irony that the government jumps and dirties its hands at regulating all kinds of industries, when its most primary objective of protecting private property is defeated by encroachers, slumlords and thugs almost every other day. The common man is threatened in villages for opposing the political class – and the government a stooge of the political class cannot even protect persons it is supposed to protect. He has to pay bribes to get basic services like electricity, phone lines.

We can envision a better India only when we draw away the power – both political as well as the financial – from the political class.

Bankruptcy September 20, 2005

BANKRUPTCY AND FAILURE – A CHALLENGE FOR THE INDIAN PSYCHE

2. It is also the beginning of a new story. A new industry is born and new skills are acquired.

Small Scale Industry in India September 18, 2005