Saturday, September 4, 2010

Liberalism under threat

Ram Guha delivered the Tarkunde Memorial Lecture at IIC yesterday. He said Indian liberalism was under threat from the RIght, the Left, and the Center!

From the Right, while competitive fundamentalism characterises most religions in India today, the Hindutva Right is most threatening because of the relative size of adherents of the Hindu faith.

From the Left, the Maoist threat, while over-stated by simplistic statistics such as "220 districts are Maoist-threatened", is highly noxious, and we must never forget that these are violent, totalitarian people.

(At the launch of Sudeep Chakraverti's book, Red Sun, Dilip Simeon had made the same point - and he spoke from the experience of having joined the first wave of Naxalites, in the late 60s. He said that a conversation such as the one we were having about Maoists would not be possible in Maoist territory)

Ram Guha recalled a visit to Dantewada, along with BG Verghese, who was also in the audience, when a villager told him, the Maoists do not have the guts to come into our village without arms.

In the Center, as defined by mainstream political parties, undemocratic, family enterprises.

In Indian politics today, he said, people go either with the Right, because of paranoia or fear; with the Center, because of weariness (there is no alternative) or opportunism; or with the Left, because of upper-middle class guilt
and foolishness.

True liberals must work outside the party system, expecially in the current system.

Friday, September 3, 2010

Stopping Vedanta doesn't serve the tribal poor

http://www.business-standard.com/india/news/b-g-verghese-stop-vedanta-stop-india/406911/

Wednesday, September 1, 2010

Value, not Volume

Don't ever let anybody deter you from buying a share because its trading volume is restricted. Think only of under-lying value.

When I first bought into FDC, a small pharmaceutical company, at Rs. 30-odd, trading was a few thousand shares a day. Today, it traded over 2 million shares on NSE alone, closing at Rs.112.

Tuesday, August 31, 2010

Sunday, August 29, 2010

Chief Ministers and the PDS

http://timesofindia.indiatimes.com/india/Gegong-Apang-arrested-in-PDS-scam-case/articleshow/6425976.cms

The fate of whistle blowers

A comment on an Indian Express site:
http://expressbuzz.com/cities/chennai/tn-whistleblower-found-dead/199577.html
RTI activists are being killed all over India. All RTI activists needs to be careful as the criminals will resort to killing. Some form of anonimity needs to be adopted to protect by these RTI activists as governments are not bothered or police is of little help.This year so far some nine whistleblowers were killed . Maharashtra tops the list with four killings. Other murdered RTI activists are Amit Jethwa in Ahmedabad in July 2010. Datta Patil of Kolhapur in Maharashtra was killed on May 31, 2010, Vitthal Gite of Beed district, Maharashtra, was killed on April 21, 2010. Sola Ranga Rao of Krishna District, Andhra Pradesh, was killed on April 11,2010. Arun Sawant of Badlapur, Maharashtra, was killed on February 26, 2010. Shashidhar Mishra of Begusarai, Bihar, was killed on February 14, 2010. Vishram Laxman Dodiya of Ahmedabad, Gujarat, was killed on February 11, 2010. Satish Shetty of Pune, Maharashtra, was killed on January 13,2010.


By bharatian

Tech fixes don't fix corruption

My piece for Yahoo India, that goes up  today:

No Silver Bullets



“People starving and thirsting, grain elevators are bursting.

Oh you know it costs more to store the food than it does to give it away.”

Legendary songster Bob Dylan sang these words in 'Slow Train Coming', in 1979. Over a quarter of a century later, in 2006, Indian economist Arvind Virmani concluded pretty much the same thing in a paper he wrote for the Planning Commission*.


Though not quite as lyrical as Dylan's words, Dr. Virmani's several pages of facts, figures, and analysis allow one conclusion to ring out clearly – our current food and fertiliser subsidies are doing a horrible job of serving the poor. If we wound up these two subsidies, and gave the same amount of money away every year, it would be enough, not just to tackle their hunger, but to lift all the poor in the country above the poverty line. If we added to this governmental expenditure on welfare programs under the heads, 'Rural Development', 'Welfare of SC, ST and OBCs', and 'Social Security and Welfare', there would be as much money all over again; perhaps, Dr. Virmani suggested, this could be used to pay for the government's administration costs and system leakages.


Subsidies and welfare programs alone cost us twice as much money as required to eliminate poverty completely. And then there's NREGA. Yet, poverty persists: in writing the conclusions above, Virmani estimated that 30% of Indians lived below the poverty line. Every year, we spend twice as much money as should be required to keep all of India's poor out of poverty. Yet less than 1% actually cross this 'rekha' every year, whether through welfare measures, employment or other means of material advance. Clearly, Rajiv Gandhi was being hugely charitable to the Indian government when he famously said that 15% of the money meant for the poor reached them.


Now that the Indian government's fiscal deficit has become a matter of concern, one of the expenditure heads that is being questioned is the food subsidy. To better target the recipients of subsidised grain, government agencies have been talking about introducing smart cards, which would carry coded information about the card-holder of the card and his entitlement of subsidised grain, sugar, kerosene and other essential items. This technological fix, it is hoped, will reduce the leakage from the system.


Madhya Pradesh had run a pilot project based on a smart card concept in 2009, but found it unsuccessful. Press reports suggest that shopkeepers were reluctant to use the machines provided. Now the state intends to achieve similar objectives by linking the Unique Identification project to food coupons. This poor UID project – even before it has been birthed, it is being loaded with all manner of expectations. According to Wikipedia**, it is believed it will help address everything from rigged elections to “widespread embezzlement that affects subsidies and poverty alleviation programs such as NREGA.” Not to mention, illegal immigration and terrorist threats.

Wow, I'll have 1200 million of those please!
 
Hey, but wasn't the Right To Information Act supposed to solve the problems of embezzlement and corruption? That was UPA Mark I. The UID is UPA Mark II – new, improved, and tech-savvy.


Forget it. Technology is no cure for corruption. The Indian Railways has been there, done that. The computerised railway ticketing system was supposed to eliminate touts and black-marketing in railway travel. When seats are aplenty, the system is a treat. But at the first hint of a rush, seats disappear. During the holiday season, tat-kal tickets disappear before the first home-user can log in. But, contact a reservations clerk at the originating station, and the same ticket is produced, for a service premium over and above the 'tatkal' premium.


Technology, in other words, can be fixed. And will be, in an environment where the stakes are high, the ethical milieu supports it, and the guilty are never brought to book. Leakages are a political and cultural phenomenon, not a technological one.


In his paper, Dr. Virmani mentioned that he had proposed a smart card to streamline the PDS in 2001. At the time of his writing, no state government had taken it up, “as it had the potential of dramatically reducing leakages and administrative costs”. The under-stated implication is clear – state governments didn't want to reduce leakages and administrative costs.

You're welcome to believe that the nature of our governance has drastically changed since then. I don't.


*http://planningcommission.nic.in/reports/wrkpapers/wk_pov106.pdf


**http://en.wikipedia.org/wiki/Unique_Identification_Authority_of_India