Saturday, October 31, 2009
TELL ME A MYTH
Friday, December 5, 2008
HALF A TRUTH
People try different things to beat occasion’s blues. I did it by counting my savings. It worked until family expenses mounted and the hideous piece of plastic called credit card entered my life. Now, the state of my finances has me perennially in the pits. So, my girl friend keeps on supplying me with fresh ideas to earn more. Only sometimes she takes it too far. That day when she saw me flipping through a recently released autobiography she was at it again. “Isn’t it time you also wrote your memoirs?” she asked matter-of-factly as if I were Brad Pitt and writing memoirs a child’s play. Preposterous as the proposition was, I tried to counter it with reason. It works sometimes. Even with her. “What’s there in my life to write about?” I said. “It’s not what you write about yourself but the spicy things that you write about others that sells it. All you need is some imagination to make two and two 22”. “But you know how modest my writing skills are?”, I said. Unfazed, she rubbed it in, “Can’t you hire a ghost-writer?” “Oh, they all have become pricey, writing for the celebrities. But suppose I find one, I still can’t see why anyone would read an unknown person’s autobiography”, I said.
“We are not going to ask people to read it”, she said. Puzzled, I asked, “What do you mean?” “I mean people need not read it. If they just buy it, our purpose would be served. Anyway in this country those who pay for books rarely read them. Why, you buy so many. Do you read all? In fact, I am thinking of selling them to the raddiwala”, she said. Feeling threatened, I fell in line. “Please don’t. I’ll do what you say. But don’t blame me if people sue me for writing all sorts of things”, I warned her hoping that at least this would work. “Stop worrying about that. They won’t be able to prove a thing. You know I have even thought of an appropriate title. It’ll take care of everything”, she said exuding supreme confidence. What ace does she have up her sleeve? I thought and asked, “What title do you have in mind?” “ My Experiments with Half-truths”, she said.
Saturday, October 25, 2008
SHOCK THERAPY

On August 9,1965 Malaysia’s parliament expelled Singapore from its federation. Does this expulsion by a republic, of a state that once belonged to it, hold any lessons for us? India too is a federal republic, and crucial areas of governance – such as law and order, agriculture, trade and commerce, transport and communications, public health-fall within the state list. The Center could well devise ambitious plans for economic progress, but they will fall through if states don’t implement them. Let’s take two examples-UP and Bihar. Politically they are blessed states, close to the epicenter of power. They do not lack in arable land or water resources (except, perhaps, some parts of southern UP that are dry). Bihar is also rich in mineral resources. Despite being so well endowed the two states score low on economic growth and human development, and are slipping further behind. During 1992-98, when economic reforms unleashed high growth across India, Bihar’s economy actually contracted at an average annual rate of 0.2 percent. UP accounts for a staggering 26 percent of infant deaths in the country.
There’s only one explanation for their being in a tailspin despite favorable conditions: Utterly criminalized political and executive classes have let them down. It’s futile threatening to cut off central funds to states that under-perform- that means very little to a state government that chronically mis-utilises them. One needs to hold out a more drastic threat- to cut them off from the republic. Lalu Prasad is reported to have advised Biharis to migrate to other states, after having helped create the conditions that make them migrate. This is too easy an escape hatch. There is no reason for the rest of India to subsidize this mode of functioning by throwing him a lifeline. Cut off that lifeline and the rulers of UP and Bihar would soon be facing rebellion from their subjects, as Nepal’s monarch did. What if India commits the same error as Malaysia, and UP and Bihar became new Singapores after expulsion? At least India would have succeeded in rousing UP and Bihar by administering shock therapy, and having a couple of economic powerhouses in its midst isn’t too bad.
Sunday, September 28, 2008
LUCKY SPERM CLUB

With his election as BJP’s Lok Sabha MP, T.P.S. Rawat has become the latest entrant to what Warren Buffet calls the ‘Lucky Sperm Club’. Although the American billionaire used the term to describe children who inherit great fortunes, it can be applied equally to heirs of famous names in two distinct fields that sometimes overlap – films and politics. Both spheres require no qualifying test and many of the recipients of this biological largesse are lucky to be there because they do not have the brains or the ability to make the grade on a level playing field. Like India, America too has its political bigwigs. Most of them are offspring of senators, governors or even presidents. It helps financially and psychologically to have a familiar brand name. It gives its bearer a head start, but it also helps to cover up some of his, or her, weakness.
The most famous recipients of the lucky sperm today are, of course, the Bushes, with one being the president and other a governor. But the drawbacks of the system, too, have made obvious by the current flag-bearer of this name whose advanced state of befuddlement will, no doubt, be a setback for the dynastic cause. As in India the inheritance of political legacy in America is not confined to the offspring of bigwigs. The lucky list includes four siblings, four widows, and several wives, including one Sen Hillary Rodham Clinton who may one day be making a pitch for the top job. Their number was barely 24 in 1986, but sisters and daughters (and widows and wives) are now pushing their way into an area that was earlier marked only for brothers and sons among relatives. So the number is going up and up. The world’s oldest and the largest democracies have at least one thing in common.
Tuesday, September 23, 2008
CUT THE FLAB

Obviously, the money isn’t reaching intended beneficiaries. There’s a much better way – directly distribute it among those it is meant for. According to the Social Development Report recently released by the Council for Social Development, 260 million Indians live below the poverty line of whom 193 million are in rural India. Back-of-the-envelope calculations show that if we abolish food and fertilizer subsidies, and distribute the Rs 430 billion that becomes available directly to the rural poor, the government could pay Rs 2,227 to each beneficiary, or Rs 6 per day for every single man, woman and child. This could be in the form of food stamps, so that it’s spent only on food and nothing else. The market would then work to make food available to the poorest consumer. If each individual gets to spend Rs 6 on food, chronic malnutrition is history. The only ones to get cut out will be FCI babus, foodgrain smugglers, fatcats owning fertilizer factories, and rich farmers who benefit from high minimum support prices. But they have other means of fending for themselves. There’s an additional advantage in targeting this subsidy exclusively to the rural poor. It will reverse some of the incentives to migrate to cities, and thus ease the pressure on urban India.
Friday, July 11, 2008
BIG BITE

Bangalore was the symbol of India’s infotech (IT) prowess. In the early 1990s,we didn’t know exactly what it was that the IT companies did, but we knew the world wanted it. The boom spawned “letterhead” companies, which registered their offices in Bangalore only to be able to acquire credibility by putting the city’s name on their stationery.
Today, Bangalore has little credibility left. It seems it cannot cope-neither with the good times that led to an influx of software professionals, nor the bad, when the pressure of thousands of its new citizens began to tell on civic infrastructure. The IT industry may have been given preferential treatment by the Government, but it cannot be faulted. It has delivered on its promises: it created jobs, earned foreign exchange and set global standards. It is those who govern Bangalore who have not delivered. Blaming the IT industry for the lack of adequate roads or electricity, for its growing congestion and pollution is a red herring.
While power brokers have been making their calculations, Bangalore has been left out of every growing industry’s future plans.
Once again, the arithmetic of politics has overtaken the geometrics of economic growth.


