Showing posts with label India. Show all posts
Showing posts with label India. Show all posts

11 Apr 2020

Desalinating sea-water: A big bang reform for economic revival

The health-crisis occasioned nation-wide lockdown is yet to be lifted. However, one need not be a rocket-scientist to decipher that the Indian economy is in shambles and economic outlook for the entire financial year has already received a battering. The silver lining is that the event has shaken up fixated notions to an extent that nothing seems impossible. Translated in economic terms, the projects which earlier appeared impractical, in a role-reversal, can become the order of the day, especially bold and gigantic economic projects. This article implores on one such ultra-mega project which is capable of pioneering economic activity across a variety of sectors and simultaneously generating massive employment opportunities, equally for the white-collar and the blue-collar. Desalinate sea-water and supply it to the hinterlands. Neither from the look or sound of it this project appears to quench the quest for such big-bang reform. However, as is demonstrated here, the time for ripe for its implementation. 

There are international examples where huge regions survive solely on desalinated sea-water. In fact, countries like Kuwait, Israel, almost exclusively source potable water from the desalination process. The proliferation of this technology is also rampant across large regions, such as and Singapore, California, Perth, etc. A 2015 paper published in the MIT Technology Review made a compelling case to highlight that seawater desalination is perhaps the only futuristic response to the growing demand for potable water. Massive investment and economic costs are cited to reject forward movement in this direction. However, those very reasons which earlier worked for repelling the proposal, now make it an irresistible choice. 

It is a known fact that desalinating sea water to make it potable is an expensive proposition. This is exactly why this idea is worth doing in today’s economic paradigm as it, let’s call it the desalination project, shall entail huge investments by the Government in diverse sectors. Firstly, in solar energy front, by establishing floating solar panels across vast stretches of oceans to energise the desalination process. This will also mean consistent demand for electricity, and thus translate into economies-of-scale for this struggling industry. Secondly, massive demand build-up for cement, iron and steel and other infrastructure goods, needed for laying down huge pipelines across State frontiers for transporting treated sea-water. Such pipelines already exist for oil and natural gas, and thus there are precedents. Thirdly, linking the desalination project with the ongoing inter-linking of rivers will spur the demand across other related sectors. The scope of inter-linking process can be expanded by including within its ambit dredging of dried up distributaries, desilting the existing water-channels and provisioning smaller canals to ensure that the desalinated water reaches every local area.

The desalination project has massive potential to further integrate the topographical spread and reduce regional inequities. For example, treated water from the coast of Gujarat can be brought to drier States, such as Rajasthan, Haryana, Delhi and others in North India. Similarly treated water from West Bengal can be brought to parched areas in eastern states like Bihar, Jharkhand, etc. Desalinated water from Odisha would supplement the water requirement for MP and Jharkhand, etc. Furthermore, areas with acute water shortage within the coastal States, such as Maharashtra, Andhra, Karnataka, Tamil Nadu, etc. can be supplied water from the desalinated plant within their respective States. Calibrated through dedicated SPVs across different regions, working in tandem with municipalities and other local bodies, to finetune the supply network, an all-India level desalination project augers well with the flagship program of the Union Jal Shakti Ministry to provide clean drinking water till the last mile. 

Considering its sheer size, the desalination project will generate massive employment opportunities. Whether it be by collaborating in public-private partnership, or by the public health department in form of large-scale recruitment of engineers (across various streams), construction workers, besides wide-ranging allied occupation and fields, there will be an overwhelming demand for both skilled and unskilled manpower. 

A crucial challenge in the design would be ensuring that the desalination project is not rendered cyclic and instead operates perennially, across the year, though in suitable moderation tied up to the seasonal rains. One way to achieve this, which can also reduce the costs to some extent, is by feeding the seasonal rivers and canals with the pipelines, which will ultimately converge in the mainstream rivers. This will ensure that the traditional irrigation channels are not disturbed, while at the same time supplementing the water-flow in the rivers, thus addressing the vagaries of monsoon. At the cost of repetition, pursued alongside interlinking of rivers, the desalination project can be modelled in a fashion that dedicated water-hubs are created across the length and breadth of the country which will obviate water-related regional disparities.  

The desalination project is replete with positive after-effects. Perennial and assured water-supply will render moot the crop-failures linked to irrigation woes. In fact, this will permit multiple crop plantations across the year, thereby, also in a sense addressing the target of doubling farmer income. Arid regions and depleting green cover, would also be unwitting beneficiaries.  

Before embarking on such a project, however, it must be unfailing appreciated by the policy-makers that there cannot be any half-hearted attempts in such expeditions. At any rate massive projects like nation-wide desalination cannot be undertaken, not even in parts, by private players or even large corporations. This is so on account of huge investments which are required coupled with lack of immediate and attractive returns, which are necessary to excite private participation. This does not imply that the project should be entirely undertaken by the Government as part of its socio-welfare obligations. Instead, multiple avenues should be created to obtain benefit of private initiative and expertise by suitable revenue modelling of the various parts of the grand design. Nonetheless the Government will have to be the lead driver in this strive to push desalination. 

In the current economic paradigm, selection of alternatives towards economic revival must be made basis three crucial touchstone; (a) creating employment opportunities, (b) addressing inequities which have permeated this country; and (c) setting into motion a series of events which will have a domino effect so as to fast-track economic demand and supply. The simple yet massive desalination project is one such idea which not just overwhelms other alternatives on economic potential but is also a path-breaker in terms of socio-welfare programs. Once a dream, electrification of every village is already a reality. Successful implementation of desalination project translates into perpetual availability of clean drinking water for every household. Thus, in the short term the desalination project is an immediate boost to address the growing unemployment and arresting receding economic growth while in the long term, attaining another frontier on the welfare agenda. The existing MGNREGA schemes, CSR activities, NGO guidelines, etc. can be suitability tweaked so as to institute the desalination project within the national mainstream. For that matter, considering its wide-ranging benefits, this project can be modelled as a mission in itself with a catchy tune of Pradhan Mantri Samudra se Jal Yogna. It would perhaps also be an apt tribute to the Mahatma whose walk to desalination is a vivid national memory.

3 Dec 2010

India, the next best thing on Earth?


The above picture of snow-drenched Europe (thanks to a dear friend) makes me reflect upon a the scenario that India presents for the mankind. Appropriately I have titled this post as "India, the next best thing on Earth?', the next best thing as the motherland is always the best thing, now matter whether the biggest in size or the tiniest island on the planet. The immediate cause of reflection is the news which has been flashing on television channels recently that snow-storms have hit European nations and the landscape is covered in thick white layers. The naturally corollary is the seizure of all activity, whether professional or recreational (unless of-course making snow-creatures is discounted for). While the same is good at a personal level in which the family-folk get time to inter-mix, the conditions outside the household being indomitably against traveling to work. However it leads to a loss of nation as a whole. 

Stand-still scenario is not good for the economy as economic activity is the basis on which a nation and in fact even a society survives and not just thrives. It is not good for the employers / manufacturers as the invested capital (in monetary as well as material perspective, both) lies idle and thus the rate of returns diminishes or in fact turns negative. Sustained inactivity is also not a rosy scenario for the employed / professional in as much as the room to work, and thus the earning capacity, is simply not available. Thus society, which requires interaction of its members on economic platforms, arrives at a point which due to natural reasons is unable to engage in meaningful interaction. On a non-monetary aspect as well. It comes on account of idle time attributable to folks. People who do not work become lethargic, gain weight and add to all sorts of social problems. No point enlisting the evils of an empty mind, but then we have seen it more than heard that an empty mind is devil's workshop.

So, how is this related to India? In a sense it is. There are no snow-storms, no natural variations to affect the work flow. On the contrary a nearly permanent tropical weather for most parts of the country presents a conducive environment for work at its appropriate pace. The stark lack of any dominating chieftains (as it used to be a couple of decades back, as reflected in the Hindi cinema of those times), the moral aspect of this aspect irrespective, has allowed the increase in working hours and employment of a working force which has now grown used to working abysmally long hours. With rich endowments from mother-earth in the form of natural resources, and a citizens dedicated to the cause of work more than work itself, the country has grown into a grove that is not just meant to be sustaining but in fact it looked upon as the harbinger of growth for both its western and eastern counterparts.

The impact of the progressive reins of Indian economy is so much so that today even the IMF is impressed with the deft approach of the Indian policy-makers (who only ensure to stay out of the way, lest turn into a stumbling stone in the path of growth of the self-driven Indian entrepreneurs), This the same IMF which enlisted India at the edge of bankruptcy not long back so as to be ebbed away from memory. Nonetheless we Indians take, just like all else, even this in our stride as we continue to march in our quest not just to be labelled as a developed nation but rather lead but example to all rest, as we were in the past a few centuries ago.

The newly independent India witnessed the migration of elite and talented to serve the western nations. Though they might have well been settled as of right abroad, the urge for them to be treated specially, be it as 'Persons of Indian Origin' or 'Overseas Citizen of India' etc., it reflective of the revived status of India that it is has turned "cool" for one to be associated with this proud-nation. The current Prime-Minister sees this trend as 'brain gain' whereas it is also to note that those seeking to rework the forgotten ties with this nation are not the unsuccessful ones looking to return but those who have made their name amongst the very best of the best. These distinguished persons are known internationally for their contribution to the global-village that this planet is and not just confined to the cause of a state or nation.

More importantly, what i personally like is the spirit of fighting-back. Be it massive floods (which have almost become a normal feature), tsunamis, earthquakes or even terrorist attacks, the country never stops. The productive activity never comes under a seize so as to turn dormant. Not just for earning livelihood, the people in this country also work for the sheer sense of joy that it brings to invent, invigorate, create, with the things around us. Though as a flip side of the all the industrialization activity no doubt the habitat has declined a bit compared to its pristine form, yet what matters is the fact, the bad manners notwithstanding, the we carry out with us an admirable capacity of owning up. A group pollutes, another tidies it up.

And, with all pun intended, just a reminder to other. The size of scams which we have are of such magnitude that few of them can equal the whole economic output of some nations. But then we turn a blind eye to these in our daily interaction, being assured that the scale will balance eventually and those responsible will be booked, the incident being just a bubble in a bath.  ...

16 Apr 2008

To India My Native Land

To India My Native Land

My country! in thy day of glory past
A beautious halo circled round thy brow,
And worshipped as a deity thou wast.
Where is that glory, where that reverence now?
Thy eagle pinion is chained down at last.
And gorvelling in the lowly dust art thou;
Thy minstrel hath no wreath to weave for thee
Save the sad story of thy misery!
Well- let me dive into the depths of time,
And bring from out the ages that have rolled
A few small fragments or those wrecks sublime,
Which human eyes may never more behold;
And let the guerdon of my labour be
My fallen country! one kind wish from thee!

Henry Louis Vivian Derozio

P.S.: This is one poem which I read for the first time a decade back when I was in school. However it continues to carry the same impression and arose the same zeal that it did when I read it first. Written in the context of failing citizens, it calls forth the countrymen to cast aside their differences and strive to reach the country at the same level of glory that it once was ...

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25 Jan 2008

India week at LSE and my poem

Well, this I was originally written by me for publication in The Beaver, the official signpost of LSE Student Union but it figures out there were some glitches and so it could not get through. So I thought it would be much better to just have a go at it on my blog.

Perhaps the title of the poem explains its all; ...


India at 60: Crossroads


Self-pride and nationalism,
Marred by bureaucracy and corruption,
Religious idiosyncrasies and bigoted fanaticism,
Still a land of growth, full of optimism.


A hot mix of culture and prejudices,
Bundles of contradictions within,
But a place of opportunities,
And self-realization forthcoming.


Carrying a indomitable past,
Feeding more than a billion mouths,
Up surging on a development path,

India
sails with a glorious mast.


Huge work force and working hard,
Economic prosperity rising fast,
Makes me wonder,
When was
India younger last?


Be it economic reforms or WTO,
Making its presence felt all through,
Preparing itself for a worldly ride,
India, my land, is flying high.

22 Jan 2008

India ranked 115 in the Index of Economic Freedom !!!

Covering “162 countries across 10 specific freedoms such as trade freedom, business freedom, investment freedom, and property rights”, the Index of Economic Freedom from the Heritage Foundation ranks India at 115 on a list of the 162 countries surveyed. [click here for the full list] But then, does India really deserve to be this low? I can understand the argument that developed countries would surely be ranked above India but then when a whole lot of countries from amongst LDCs, Africa and Latin America are all ranked above India, which generates only an abysmal score of 54.2% in a list which is topped by Hong Kong with 90.3%, I really wonder that either there is a serious error in the calculation of these figures or that there is something really wrong with the way we act.

The ratings have been explained in the 422-page book titled similarly i.e. ‘2008 Index of Economic Freedom’ [click here to go to the downloading page for the full book] which seeks to not only illustrate the basis or rankings [for more, read the methodology adopted for the rankings] but also looks forward towards defining the future. Built in five plus one chapters namely; (1) Economic Fluidity: A Crucial Dimension of Economic Freedom; (2) Narrowing the Economic Gap in the 21st Century; (3) Globalization Is Making the World a Better Place; (4) Methodology: Measuring the 10 Economic Freedoms; (5) Economic Freedom in Five Regions; and (1) The Countries; the report in its last seeks to illustrate the views of its compilers in formulating the report and in the last accompanying chapter given an individually focused account of the reported countries. It is this last chapter that we are most interested in and particularly the view adopted in India, which has led to such a poor rating of 115.

In fact what struck me in sharp contrast to the optimism we breed in the country was the comment in the second paragraph itself was “India has no notably strong economic institutions, and the few areas that score better than the world average are limited government size, labor freedom, and property rights. Government expenditure is relatively low.

The report summarizes the position of relative freedoms in India as under;

[click on the image to enlarge]

While the ‘freedom from corruption’ is understandably low, the low depth to which ‘financial freedom’ has been rated is really something which I really look with skepticism for the reason that has been assigned for the same is that “banks must lend to priority borrowers” and that “foreign ownership of banks and insurance companies is restricted”. Instead of being major influencers of financial freedom, I find the two reasons assigned as more of a western looking-down upon the way in which India has out-performed the major developed economies of the world given the fact (sic) that we have very restricted financial freedom. This really makes me wonder whether these reports are issued to encourage the countries to outperform each other by bringing positive changes in their system or to throw mud at ill-received countries. Just like saying on the face of it that we are ‘non-racists’ and ‘proud multicultural societies’ but then from inside really despising those not of the same colour or kind.

But digressions apart, I serious doubt the credibility of the rating especially in the light of more factors, few of them being our property rights, business freedom and trade freedom being assigned lower percentage points than labour freedom. Further, unlike the comment on the other countries, there is not a word of praise or appreciation of the country’s performance and all that is written is either negative or portrayed as being worst off in the world.

Nonetheless, as they say ‘when the sky falls, we shall catch lark’, similar is the rating which I would assign to this report. It is an exercise in retrospect and except for the other chapters of the book (some of which really look forward and relate the present to the future), I do not find any worthwhile use of the report either for potential investors or otherwise.

23 Dec 2007

EC on Gujarat Elections. Just as predicted


Gujarat Elections
It wasn't long back when I wrote about how sledging wars were being carried out in the run down to the Gujarat Elections [click here for the last post]. I has also predicted that there would be no major action by the Election Commission and the results of the alleged notices issued would be out only after the elections are done with.

And then rediff reports exactly the same; "Poll Violation: EC warns Modi, lets off Sonia", as if warning is of much significance in the political arena. Plus the proceedings are given way to only when the elections are over and there result declaration is not very far.

It seems Election Commission has not remained the same vigilant watch-dog of Indian democracy.

Election Commission's role

Though it has been in vogue since the conception of the democracy in India with the Constitution specifically providing for one, it was not until the appointment of Mr. T.N. Sheshan that the Election Commission got a noticeable role in the state of Indian political diaspora and regime. Appointed in 1990 as the Chief Election Commission of India, Mr. Sheshan reigned during the most vociferous times of Indian polita and perhaps that made him venture strongly against the ruling alliances.

Prior to him, the Election Commission had merely remained as a political armour in the hands of the ruling party at the Centre to use this mechanism of 'electoral mischief' against its opposition, both at the Centre and State levels. There was no independent thinking and mindset on the part of the Commission and perhaps the high number of election petitions during those times signify only that, as the candidates fearing in-action on the part of th Commission instead approached the Courts for looking into the irregularities on that court. The electoral dispute between Late Mrs. Indira Gandhi and Mr. Raj Narain which went upto the Supreme Court is the classic illustration of this. It took a Constitutional Bench of the Supreme Court to decide upon the allegations, and rightly so, for it was clearly the job of the Election Commission where it was called upon to preform.

But then Mr. Sheshan was a man on a mission; mission to root corruption out of Indian politics. To quote wiki, "
As the Chief Election Commissioner of India he made history by introducing innovative electoral reforms and making the Election Commission a powerful body. He may be rightfully termed as the most visible and controversial public figure who redefined the status and visibility of a CEC in India. His name became synonymous with transparency, efficiency and forward vision during his tenure as the CEC." [read full article here]

Since then there have been many who have been appointed to dawn the role of Chief Election Commissioner [click here to see the full list] but none has been so successful like Mr. Sheshan where bachha-bachha knew his name. To recall, there was even a song on his name "... Sheshan ki sarkaar, tha mast kalandar ... "

But these present times fail to inspire confidence in this institution. There was even a PIL filed against the roles of the various functionaries of this institution in the Supreme Court (and I watched the entire proceedings myself in Court 3 with legal experts on both sides), which was taken back after a political compromise. Nonetheless the reputation of the Election Commission as an independent arbiter and watch-dog ensuring fair-play in the Indian political arena has definitely take a back seat and is dwindling with the coming times.

18 Dec 2007

India's national website


Well for a change the Indian government is recognizing web-based medium of communication as an official one. Really things have come in a different perspective since the Right to Information Act of 2005. In fact they just don't have a website, they are also providing links for bloggers like me and other to promote it. [Check for your self] It is a good attempt for renovating the thinking outlook, than the bureaucratic one.

But do check the national portal [click here]. It is a good reflection of the cultural and social backdrop, with a nice piece of design to being with.

16 Dec 2007

A dollar at 35 Rupees !!!


"The rupee is testing 38, we are playing in the 38-40 band. It has so far been a two-rupee band and the rupee could come to 35 vis a vis the dollar in some years," says K V Kamath, CEO of ICICI Bank as rediff reports. Indeed, if it would be, a proud moment for India. A sure and potent sign of a strong economy. Its not that this would be the first time though, it was pretty much the same before the Rupee was devalued during the last emergency of 1975, but now the appreciation is on account of the strength of the economic value that Rupee carries, therefore exhilaration is due indeed.

Of late there was much hype and euphoria when the Chinese Yuan was appreciated. However the situation was different there. No doubt the Yuan was becoming strong but the appreciation was on account of change in peg to basket of currencies rather than on account of the intrinsic worth of Yuan itself. I am pretty sure by now most of the readers without a background in monetary economics would be at bay with what I have written here. So its time for simplification.

Currencies the world over were initially valued in terms of their convertibility with gold, i.e. the 'Gold Standard'. This meant that the value of the currency was how much gold it could purchase with one unit of its currency. This also meant that the holder of the currency was entitled to get gold equivalent to the currency which he held, i.e. the 'Gold Convertibility' and the national governments or their central banks (like Federal Reserve for US, Bank of England for UK, Reserve Bank for India, etc.) were obliged to give equivalent amounts of gold to the currency that was presented to them for conversion. This however meant that the Banks could issue currency only equivalent to the amount of gold they carried.

This restriction on ability to issue currency severely impacted the roles national governments and their central banks could play in the regulation and management of their economies. Further, with the Great Depression proving a disaster for macro-economic management, countries the world over shifted to 'partial convertibility' i.e. gold would be given in exchange of the currency but not to the full extent of the value depicted on the currency but only partly. So for example when earlier for presenting $500 you would get gold worth $500, now for presenting $500 you could get gold worth only $50 and so on and so forth.

Then came the World Wars and the countries were in need of money more than ever. Simultaneously the IMF was also established. This led to the rejection of the gold standard altogether. Countries across the world agreed to covert their currencies now in only different variants and not in gold. So earlier when you could get gold worth $50 for submitting $500, now you could only get other dollar bills. So for 5 $100 notes you could get 100 $5 notes and so on. But the IMF held in more than this. It determined at that point the value of each currency on the basis of gold it could purchase and then calculated the value of each currency vis-a-vis each other, i.e. 'exchange rate'. The countries which came later on were given option to determine the value of their currency on the basis of an existing currency value or a mixture of them.

So India adopted a 'basket of currencies', currently 12 but unknown, where upon a formula developed by it the value of Indian rupee would be determined. China, prior to the appreciation I talked about above, was pegged to US dollar. So whatever the value of US dollar, the value of Chinese Yuan would be xUS$ where x was what China would decide.

Naturally Chinese products were always cheaper in US than US goods. And consequently the trade advantage China got allowed itself to occupy a huge market share (we all know how huge) not only in US but all over the globe. And so economically US was always constrained and this led it to raise a political agenda to get Yuan change from pegged to a basket, which China in fact did.

Now there is a concept of fixed, floating and dirty exchange rate as well. But I think this would get this post will get too heavy. Will write somewhere else. In any case, coming back to our originally discussion, since it has not been the influence of RBI or any external agency that Rupee has been appreciating, it is surely the outcome of economic growth and relative stability that India has been facing on the monetary front, which is good news indeed for the county as a whole but with the exception of exporters which have been having a good time with a weak rupee. Let us hope they can continue to make the best of their business by entrepreneurial initiative instead of looking for a fiscal relief from the Finance Minister.

12 Dec 2007

Arrest me if you have the guts, Modi tells PM !!!


"Arrest me if you have the guts, Modi tells PM". A really sensitive heading posted by rediff. The count-down to the recent Gujarat polls is really going past in an interesting and curious manner. With the centre poking its nose in the state, trying to ensure that the existing government is not returned back to power; with a vehement Chief Minister (whom a Gujarati tells me, runs the state like a corporate undertaking with video conferencing on updates from district administration everyday) who is not afraid to speak his heart-out; and with an eager and closely monitoring Election Commission, this tripartite affair is really getting interesting.

For long now the Congress has been accused or having a puppet time in the Indian Government with the show being essentially run by just one (though I do not agree with it, especially as far as the financial and taxation sector is concerned) and no wonder majority of Modi's comments have come against that one person (no marks for guessing whom, ok ???) But this is probably the first time that he has spoken against the PM himself. Mostly soft-spoken but a genius, Dr. Singh has never been a political person throughout. He has been serving the country with the very best of himself and the best of his legions against all odds but then the thing is that politics is not all about efficiency (though I would seriously love that too be) and there is a bit of politics in politics (for the rest bit of it, I decline to recognize it for it is essentially the manifestation of corruption and vagaries of power). And therefore more needs to be done in order to take care of purely political issues, atleast I think, on Dr. PM's part.

I would surely not be surprised if there are no reactions or comments either from Dr. Singh or the PMO on this challenging remark by Mr. Modi but then surely there would be one from the Election Commission, which is poorly placed in between the centre and the state. Notices would be issued and proceedings initiated, the results would be withheld till the line-up for the elections is complete and new government comes to power. A typical Indian case. So much from the politically sensitive country. But as for Gujarat, the state is really progressive and that there is no second thoughts on that.


10 Dec 2007

India rising and beyond

More than 8% GDP growth rate, a bulging working class, heightened attention from the developed nations and keen interests of economists as to how things work despite such high levels of corruption, un-systematic patterns and all, curious BBC people, lots of you tube videos [1, 2, 3, 4, etc.], bullish sensex. Is this all? Does this translate into India rising?

Huge section of people still below poverty line, more people on less than 1 dollars are day than the entire population of many countries, large-scale illiteracy, massive income divide, little and practically no infrastructure to connect the rural with the urban and share the benefits, the same rudimentary and dogmatic vastness covering the mental psyche of the rural India (which deprives that section for sharing the same development rate, who do not understand what does an appreciating Rupee against dollar mean) and all.

But why am I saying this, is it a criticism of the structure and more like saying "things will not change ever" or "come on, you gotta be kidding" types. I am a hard-core supporter of the vision that Indians carry and India is striving for. And I am equally sure that we will be able to achieve those desired results. But my only concern is the timing. In my opinion not much emphasis is being given on these underlying issues, which are vicious circles really, and without tackle which successfully, the dream will continue to evade us and become a long realized one.

The policy makers should lend their eyes to that. To illustrate, take the case of Education Cess, which is charged as a surcharge (i.e. tax on tax) @ 3% now (earlier 2%). The collections on this count have been huge and are piling up as we speak and Indians spend. But where are they being used? This reply in Lok Sabha does not tell us much. The attitude of the Government did not change even an year later [click here to see]. Shouldn't there have been a professional approach towards handling this fund, which has been earmarked for a special and important purpose?

Same is the case with handling of foreign exchanges. No doubt the Reserve Bank is doing a wonderful job keep the Rupee stable and fighting inflation. But shouldn't we stop compiling dollars? I am sure, with the given rise in exports and (but for oil), matches with imports, there would be no foreign exchange crisis in the short and medium run. Then why not invest these reserves in infrastructure development. Mumbai and Delhi are like saturated in terms of the available space. Why not make smaller cities around these and other metros as hubs for investment to supply and cater to the needs of these metros, which are like economies in themselves.

India is rising because it is bulging with talent. But what is the point if the talent cannot be utilized? I would propose that incentive schemes be made such that non-office jobs be situated in sites which do not crumple space in cities. Like what about BPO, call-centres etc. being situated in outskirts of cities. This will not harm anyone and more space in the interiors of the city can be devoted to jobs which require more skills and add more value. Certainly I do not wish to demean the wonderful service these sectors provide but it is just that a proper city planning itself can do wonders.

Then we have such a huge IAS personnel, all full of talent and merit (come on, its really hard to pass through that UPSC exams and if you are through, you got to have something in you). Why not assign independent charges and pool ideas from amongst them. But always keep them making meaningful things out of what Ministers say. The country will grow more if independent charge is given to each IAS (sitting in North or South block) to take care of a particular sector/industry/area/city (or whatever wise criteria one can evolve) and then give them the resources and time with a regular stock-taking. I am sure they would come out with wonderful results. We just got to trust our brother-hood and be patient with the results.

These are just few suggestions which my brain can think of. Think the wonders that will be caused if the progress is seen as the target and more people start thinking in this novel and broad way. I would really love to see the country prosper and advance in more qualitative terms than just in terms of GDP.

Vande Materam ...

9 Dec 2007

Why IAEA is such a huge issue in India?


Once there was a time when Mumbai used to come to standstill at the roar of the tiger, Bal Thackeray. But things have not remained the same. A few days back (or even a fortnight), Mumbai halted because of El Baradei. Does that name ring any bells? Or who is he?

Well, he is the chief of the dreaded-word IAEA, which has been amidst the centre point of the ongoing controversy and drama in the Indian parliament. The Left conceptualizes him and the organisation he represents as a harbinger, resounding clutches on India's progress. Why? Because he and his organisation is at the centre point of the Nuclear Deal which India has signed with the United States. [click here for full list of events.]

Still no clues??? Alright, I will disclose now who he is. He is the Director General of the International Atomic Energy Agency, the UN's nuclear watchdog. And the reason why his organisation is dreaded because of the Nuclear deal whereunder India agreed to allow IAEA to supervise its nuclear plants, therefore technically amounting to an external control over hitherto India's foreign-influence-free nuclear policy. This is the biggest reasons for the Left's hue and cry over the issue; that India's freedom has been restricted under the Nuclear deal and its opposition to IAEA.

But is the issue really that big to rock Indian Parliament for more than a quarter-year now???(since August 03, remember ???) What would be the consequences if the events do lead out to an IAEA supervision on Indian nuclear reactors???

Well, under the terms of the Nuclear deal, India is obliged to use the nuclear materials etc. supplied by US only for non-military purposes (which indirectly means a ban on conducting further tests on nuclear bombs etc.) and in the event India does decide to go with the military uses, the deal would be suspended. But who decides whether India has in fact used the material for non-military purposes. Well, if the IAEA deal goes through, IAEA would be the sole determinant of this.

This would mean that if IAEA says so, India has used the nuclear material for non-military purposes even if it hasn't. The position of IAEA is singular. It reports as a special agency of the United Nations and submits reports, which are acted upon pretty quickly. (Heard about its report on Iran and the later turn of events with the US even threatening about going ahead with an exercise similar to Iraq???)

Then, further, India will be obliged to grant full access and know-how to IAEA officials of its nuclear programme, something out of the ordinary for the Indian nuclear policy. In order to fulfil its mandate, IAEA may even be required to examine the Indian civilian nuclear power plants and so goes off our vision for energy security, the Left and others cry.

So we know what are the costs of this. And proposed benefits??? Well unless India goes on to allow IAEA to have a seat and inspection rights to its neclear ractors, the Indo-US nuclear deal will not go through. Unless the deal goes through, India will not get uranium and other nuclear-energy assistance required to go ahead with its energy programme. The entire load, therefore, will be on our indigenious energy resources (i.e. coal majorly and to some extent hydro-power), which definitely are not capable enough to meet our present energy needs, forget even contemplating about our future needs.

So what do we do? Say yes to IAEA and allow our energy requirements to be met with a contingency of foreign/external control over our works or say No and goodbye to IAEA and strive without energy to maintain a growth-rate of 8-9 percent. The answer is for you to decide. But do let me know your views on this.

26 Nov 2007

Changing times with Reservation in India: Lessons from the past



There was once a time in India (probably identified by period preceding Independence) when being a Shudra was a curse to the life of the individual. Driven by equity and the desire to bring those who had been victims to these times of discrimination and suffering, the Constitution of India made provisions for Scheduled Caste and Scheduled Tribe. Initially we provided an affirmative action programme whereby certain seats were allocated for these categories in schools, colleges, political institutions etc. This was considered to be a transitional arrangement, to last for ten years, whereafter there would be no second-grade citizens. However, as usual, the period was extended every ten years and now the things stand that it has been extended till 2026 whereafter the next review will take place.

On the other side of affairs, we also extended the form, nature and amplitude of benefits to these backwards classes (which also included, besides the SC/ST, 'other backwards classes'). We provided for reservation.

Indian legal and political history is replete with the violent reactions and bloodshed aftermath, coming from those who fell in the General Category. This was primarily due to the then Government (led by Mr. V.P. Singh of the Junta Party) with followed the decision to allocate quotas for the backward classes (or more specifically implementing the Mandal Commission recommendations). The most prominent example of this backlash was the suicide of Rajiv Goswami, who gave his life only because of the inequalities and inequities that were being introduced through this fractured and ill-thought policy decision. And this was in 1990.

Times have changed, but not much since then. Every now and then, there have been attempts to increase the scope of this reservation system in terms of both the magnitude and areas of application. The battle is now in courts and therefore being sub-judice, I would not comment on it. But there are few interesting observations to draw from it.

(1) The policy-led-decision of introducing reservation seems to be essentially in line with the 'divide and rule' policy of British in India. What reservation has done is to have made broadly two classes in India: those within the system and deriving benefits and those outside and considering themselves condemned. This has also led induced attempts of this inter-class influx both on the individual level and community level. For example, (at individual level) higher classes marrying with lower classes to derive the benefit of reservation and (at community level) entire community demanding to be declared as a backward class so that they could also be brought within the fore-fold of reservation.

(2) No doubt that it is being described as a political tool and measure of 'vote-bank-politics', but I believe things need to be seen differently. When we initially thought that we would digress ourselves from the push-up theory and instead adopt the pull-up theory but that objective has not fructified. We have provided for reservation in seats in colleges etc. but we have been unable to find the required number of candidates to fill up those seats and avail the benefit. Instead what we find is an ever increasing number of seats being reserved without this being translated into meaningful terms owing to the inability of the system to induce the backward classes to come forward and take the benefits of it.

(3) The social diaspora does not reflect in unequivocal terms the direction we need to adopt for future policy programmes. While there is intense demands for both; increasing the number of backward classes into the benefit availing segment, and diametrically on the other hand to end up with this system fully; the ins and outs of these are not sufficient to evolve a long-term objective to be pursued.

In these circumstances, the best answer according to me lies in 'Subsidiarity'. It just requires a re-designing of the system in a manner that the benefits of the system peculate to the lowest level, which cannot be done in a manner better than one wherein it starts from the lowest level itself. By making the lowest cadre competent to realize the benefits for moving up-stream and tread on the path to progress, one may as well find the existing system working and bringing out better results.

But then, again its a question of "political will" and "commitment" and cannot be achieved without determined outlook and valour.

22 Nov 2007

The Gloomy future of teaching profession in India


"The Indian academic profession has suffered from having been born under three unlucky stars. It was unable, because of the poverty of the country, an unfortunately chosen constitutional model and an uncongenial cultural tradition, to develop vitality as an intellectual community with a variety of overlapping, more specialised intellectual sub-communities.

Coming into existence in a society which was not a civil society, it could not develop a sense of affinity with the other sectors of the elites – alien and Indian –which ruled the Indian polity, economy and culture. And being more advanced in the scale on which it was carried on than the economic and social structure of the country, it could not function as an effective training stage for the central and lesser elites of the country.

These latter two misfortunes accentuated the first. The attrition of civility and superfluity in the performance of its function in the Indian economy has inhibited intellectual ardour and hampered the growth of academic intellectual traditions."

In my view, this analysis by Edward Shils is perhaps it is one of the very erudite summation of the reasons for the woeful position of the teaching profession in India. This problem is not unique but, similar to many other problems in India, a part and parcel of the the vicious circle of poverty, over-population and all. Keeping aside the historical reasons, the huge competition in the sector, lack of monetary incentives and the cultural attitude towards teaching being considered a noble but last option [heard anyone saying 'those who can't teach, preach'].

Research has shown that "there is evidence of inefficient incentive structures for teachers, with teacher characteristics that produce improved student achievement commanding only weakly higher pay, while other teacher traits that have few discernible learning benefits for the pupils having strong salary payoffs for the teachers." Then there are other reasons as well. But whatever may be the reasons, the country as a whole is suffering. Those who are bright don't need a teacher and those who are not-interested cannot be helped by a teacher. But what about those who are average and really need a committed individual to inspire in them the zeal to dream, think and grow.

A teacher is very important for the growth and development of the pupil. The personality of students is sharpened highly by the teacher they have, especially in their formative years. They learn, know and understand the meaning of respect and millions of other things in life, which they cannot be expected to realize all at home or work. We all need a playground and an instructor to find out what are potentials really are and the field we are best in or belong to or should aspire to me. And that is what a teacher is for.

Here I do not mean to offend or show dis-respect to all those teachers who have shown the golden path of "knowledge is empowerment" to me and that "there is not success without hardwork" and those who continue to inspire the zeal in me to keep myself directed to the chosen goal, but what I am essentially trying to say is that the number of such self-motivated, inspiring and selfless beings is dwindling rapidly and the system needs to be reworked if the future for tomorrow is to be ensured as being a good one.