MAHATMA GANDHI'S TALISMAN

"I will give you a talisman.
Whenever you are in doubt, or when
the self becomes too much with
you, apply the following test. Recall
the face of the poorest and the
weakest man / woman whom you
may have seen, and ask yourself, if
the step you contemplate is going to
be of any use to him / her. Will he / she
gain anything by it? Will it
restore him / her to a control over
his / her own life and destiny? In
other words, will it lead to swaraj for the hungry and
spiritually starving millions?

Then you will find your doubts and
your self melt away."

(One of the last notes left behind by Gandhi in 1948, expressing his deepest social thought).

SAD DAY

Taslima had to leave.
India the home to the Bhagawat Geeta, Hindus, Jains, Buddhists
Which accepted people from all over the World
The Jews, the Christians, the Parsees,
The invading Mongols and Muslims
Even the Portugese, French and English.
This India has no home for Taslima.
Today India has gone away from the road of Dharma and Reet.

CHANGING RULES

The last few days, a lot of attention has been focused by the Lok Sabha, Rajya Sabha, print media and the TV talk shows on the farmer debt waiver proposed by the Finance Bill for FY09. A consensus seems to be being arrived at that, the off-budget sum of Rupees Sixty Thousand Crores, if and when used to provide relief to some cultivators, is at best a palliative but not a cure for the persistent agri-crisis facing India for many years now. The basis issues causing the crisis have not been addressed in the last four years of this current government, and at the last moment (last year before national elections), it seems a 'cash for forgiveness' is being offered.

A lot of heart burn has been caused to many cultivators who feel left out of this governmental largess. All those who were regular in discharging their debts, those who had to manage loans from the money lenders and those who suffered due to volatility in cash crop prices, are out in the cold. Basically, it is not easy for the FM to accurately determine or find a unique measure to target the indebted cultivator who is really in a desperate condition. It is clear now that the ceiling of 2 hectare is at best a rather poor measure, especially if farmers of Punjab and Maharashtra are analysed. Dry farming seems to have escaped the relief net.

In this regard, I feel, all cultivators who have a total income below Rs. 100,000 per year could be classed as poor and so entitled to relief, irrespective of their land holding, quality of land, farming methods or crop. The easy method to determine the annual income would be to encourage them to file their annual income-tax returns and provide them with PAN cards. As of now, so many citizens are required to obtain their PAN cards and file 'returns' even if they do not have to pay any tax. So why not our about 12.4 million cultivators? Eventually, the rich farmers will be separated from the needy one's so that targeting of all kinds of relief is better managed. I wonder if any Constitutional amendments are needed for data gathering through existing systems. The Kisan Credit Card would not serve the purpose since it did not assess the income.

In the current situation, the existing information with the Dist. Collectors and Gram Panchayat could be used for better targeting of the needy cultivators. Over a period of five years, the IT data will be very useful for all kinds of social allocations too. Do our elected representative have the gumption to change the rules without getting emotional as always?

Jai Kisan.

MODERN LOAN MELAA ...

This new Finance Bill FY09 has presented the unthinkable in populist policy … proposing to write off up to rupees 60,000 crores in farmer 'bad debts' without even a fig leaf of budgetary support.

Writing off farmer 'bad debts', reminds me of an earlier era. During PM Indira Gandhi's time, one of her Ministers: Janardhan Poojari, would go about arranging 'loan melaas' and distribute money (actually loans which were to be treated as ‘grants’), and garner votes. This was considered a great socialist move and praised such that 'Indira became synonymous with India'. She outdid her father the great Jawaharlal who abdicated on 'market compensation' for 'land nationalization'. She is remembered for 'prince purses abdication', bank nationalization', 'collieries nationalization' and the 'emergency'. Lest we forget, all these constitutional amendments were passed by the majority of then parliamentarians. We citizens are still enjoying the fruits of these great deeds. It seems there is no shortage of fools, right from Md. Bin Tuglak's time, who gave away gold coins for copper. These 'gigantic personalities' are revered-reviled, even today.

This single proposal (being already treated as a given), announced by FM P. Chidambaram, has dealt a body blow to financial prudence. Now the farmer will always think that a 'loan' after delinquency becomes a 'grant'. In some ways, this has been going on every few years but in small measure. Note, he has no thought for the farmers who PAID ON TIME or who borrow from money-lenders (India's banking system reaches about 20% of households in the rural areas and only 66 million Kisan Credit Cards have been issued to 127 million Cultivators-2001 census). He has not realised that in Maharashtra where farmer suicides have been going on for some years now, poorer farmers in Vidharba have more than 2 Hectares but are worse off than farmers in Madya-Maharashtra who while having less than 2 hectares make more money due to 'grape' and cash crops. Yet the new proposal gives hand outs to the better off Madhya-Maharashtra farmers and nothing to the desperate Vidharba farmer, due to the land limit of 2 Hectares. How's that for justice?

A prudent policy would have been to reduce interest rates to 1% retroactively, grant a five year period to pay off amount thru EMIs, allow fresh loans to be permitted, again at lower rates. After all farm sector has required a boost for the past ten years. Why was this delayed for so long? The FM could allow 'market' driven economy for farm products, provide supply-delivery chains free of state borders, better seeds and technology free to the marginal farmers, and also tax the rich farmers who earn more than Rs. 3 lakhs per year. Force the 28 states to fall in line, by denying their farmers the above benefits. The marginal farmers are bound by laws of economics to remain marginal for perpetuity and thereby be a major burden on society. So most important, encourage thru fiscal measures, marginal farmers to combine with other littoral one’s so that their joint holdings reach 100 hectares, which will allow economies of scale. Such cooperatives to be like village panchayats, keep all politicians and boffins out of it. Dissolve all politician driven farm cooperatives by denying them tax deductions and subsidies of any kind.

Such reforms are pragmatic and create permanent traditions, yet our FM has no heart for it for the past five years. Giving a fish instead of teaching how to fish, ensures that the target group remains enmeshed in poverty to be then browbeaten every election year. I am certain this FM will join the other 'gigantic personalities' mentioned before and be revered-reviled for ages to come. Jai Hind.

(Abridged version published in 'The Hindustan Times, Mumbai, Mon. 03rd Mar. 2008, page-4).

GENERATE ELECTRIC POWER FOR FREE ... revisited.

This is about my first essay of 19th Feb.'08 about the same subject.
I have received some feedback from friends and wish to make sure that I have been understood about why it is of paramount importance for each of us to save energy and power in our daily lives at home and work. I have tried to respond to the issues raised so far.


... WHY ARE THE AUTHORITIES NOT DOING ENOUGH?

1. This is not about what the individuals in Govt. can do. Ours is an 'elephant economy' ... slowly plodding along, with the priority being to somehow stay in power.
2. This is not about who has been negligent and incompetent at their jobs. Our well make plans are approved and implemented piece meal, so often do not reach the intended goal.
3. This is not about politicos pandering and appeasing niche groups to garner valuable votes to stay in power. Free power, flat rates, priority connections are some of the means of causing humongous losses.
4. This is not about state administration ignoring the huge theft of power by most slums, some industry, some power looms and some commercial establishments. The vigilance and police probably make good money out of these issues on a continuous basis.

No friends ... issues such as above are understood by the intelligent and the thinkers. I say ... discount all this. After knowing the above flaws in India, what can we do to mitigate and then improve the situation. My essay is about this.

I am thinking about the 85 million households (out of a total of 192 million total) who do not get electricity as per the 2001-census and I am thinking about the 0.62 million households who have NO MEANS of lighting at all. Since each household is average of 5.3 persons, you can calculate the number of citizens who belong to the Bharat part of India, who are living in the 'stone-age' already. They deserve some solace and attention from those who are better off. So my essay is for them. Let us and our neighbours do a small thing that costs us nothing. Let us bring 'light' into their lives by not wasting it in ours. At least the twelve hour power cuts will reduce for some of them.

Now ... think carefully about human nature. The 'have nots' hear about Radio, TV, Mobiles, Theatres, fast cars, good clothes, fine restaurants, Clubs and Malls, where lights burn day and night, from their relatives and friends who visit them twice a year from the towns and cities. They are undergoing a slow burn of anger. Some support or join the Maoists, the Naxals and the fanatic fringe groups. Some of them believe the injustice can only be removed by revolution, not evolution. They will not wait any longer for the 'trickle down effect', after all it is sixty years since political independence. They rush to the cities with a huge chip on their shoulders and we all face a 'situation' as the police call it. The kinds of citizens who are currently causing the rapid urbanization are often from this category. They want more and they shall have it, legality be damned. This fact of life should motivate the better off citizens to do what ever is in their power to reduce the 'anger' of the 'have-nots'. My essay is also for them.


... WHY CANNOT MORE BE SPENT ON RnD AND EFFICIENT PRODUCTS?

As of now, India is not in a position either to make 'heavy investment' in developing 'energy efficient products' or setting up the RnD facilities for the same. These things happen in 'developed societies' where citizens do not suffer from the deficiency syndrome. Those who
have such technology want an arm and leg for it ... a short sighted policy I say since it affects global resources which can only reduce with time and affect the greedy too. India needs to work hard to feed the undernourished 50% of the national children, educate them to make them employable and provide health care to about 500,000 villages, all this in spite of the 'leakages' in the system. India needs to urgently provide irrigation, roads, ports, cold chains, etc. to allow movement of goods and farm products from factory-farm to table. Funds are short for research and expensive technology in spite of consistent rapid growth in GDP. In fact proposed budgetary allocation is much below the individual ministry expectations. Remember the 'leakages' in our system are caused by Indian's and nobody else ... due to their persistent deficiency syndrome. The 'have-nots' are easily corrupted and propagate corruption too. Once their life, health, family and work is secure, corruption and leakages reduce drastically. Example is the Swedish countries.


... WHY NOT LET MARKET FORCES DECIDE PRICES TO CONTROL DEMAND?

The USA has prices fairly close to market rates, they are the best example of market driven economy. Yet, you will not find any 'reduction' in consumption of resources like water, electricity, energy, materials, etc. More Hummers and SUVs are sold and more bathtubs and
showers and home appliances are installed in homes, more food is wasted. People don't mind running three income jobs, but have difficulty in trying to reduce their spends. They prefer to run 'wholly debt homes' and have no cash in hand. They continue to run a national trade deficit of almost USD 1.7 billion per day and just print paper money to cover it. On a smaller scale the same situation exists in Euroland. So market prices will not work in a growing economy ... it will feed on itself and cause a runaway inflation as in Brazil and Indonesia and even China as per the latest reports.


... WHAT CAN THE ANGRY HAVE-NOTS DO?

The ignorant and the abject poor don't care which hell they reach. "Freedom's just another word for nothing left to lose"...Jonny Cash in 'Me and Bobby McGee'. While they riot and die and their families learn, the rest of the nation suffers terribly and thus evil spreads. Lack of fulfilment of basic desires, breeds anger, which leads to inappropriate action and thus violence and evil spreads. Excellent examples: Sudan, Kenya, Somalia, Pakistan, Afghanistan and so on.


... TACKLE THE ROOT CAUSE FIRST?

This is now being addressed by the federal politicos, since we have parliament election coming up within twelve months. Even with 80% implementation, some 62,000 MW of new power will be generated (in the current five year plan for 2007-2011), and then 32 million households will have electricity. Global statistics indicate that up to 10% of the population, that is up to 20 million households, will probably remain unreachable for various reasons. The 2001 census data talks of 85 million household without electricity, this figure will probably be some 15 million lower by end-2007. Thus some 18 million households will have to suffer the humiliation and therefore anger for another five years. What do you think they will want to do? I expect serious law and order issues.

... MY CONCLUSION!!

Indian energy statistical data has been analysed by global consultants and it is determined that up to 25% energy CAN be saved by better management. If we target this then 122 billion electrical units can be saved per year, thereby bringing electricity to another 4 million households. As more electricity is generated, the 25% saving statistic will enable more households to receive electricity and the continuous 'power cuts' may recede. This will create hope among the 'have-nots' and hopefully enable them to be economically fruitful in their home areas and thus prevent them from rushing to the cities to live like slaves and create 'situations' for all citizens. Further, the backward districts will begin to prosper.

I therefore repeat, saving makes sense if only to protect our way of life and simultaneously help others improve theirs. The greatest innovations and solutions have throughout history always come from 'concerned citizens' and private groups ... never by waiting for government to take corrective actions.