Thought for the day
"There is a
harmony in autumn, and a luster in its sky, which through the summer is not
heard or seen, as if it could not be, as if it had not been!"
-
Percy Bysshe
Shelley (English, 1792-1822))
Word for the day
Schlemiel (n)
An awkward and
unlucky person for whom things never turn out right.
(Source: Dictionary.com)
Malice towards none
Two Muslims were buried in India yesterday.
One was mourned by all125cr Indians.
The other perhaps by none outside his family.
And some would still argue that it's about religion!
Growth vs. sustainability
As per an ancient Hindu tradition, all Hindus are obligated to
feed Brahmins and crows during the ancestors' fortnight (पितृपक्ष) that usually comes in the month of September
every year. It is widely believed that feeding Brahmins and crows in this
fortnight pleases souls of the ancestors and thus redeems the person performing
this ritual from the debt of his ancestors.
Besides, a grand feast has to be organized by all Hindu males
within 3weeks of the death of their parents, wives and children in which
Brahmins, Dogs and Crows are fed.
I know from my interactions with numerous villagers and urban
poor, this feast (श्राद्ध) could
be one of the top 20 reasons behind perpetual indebtedness of rural Indian household,
bonded labor and distress.
The moral of the story is that the feast will be held regardless
of you. In case you want to enjoy the feast, you need to survive till good
times (अच्छे दिन)
arrive; lest Brahmins and crow shall
enjoy the feast.
Relating this analogy to the politics and economics -
Ø
It must be understood that to benefit from
whatever good a government does, the political parties running that government
will benefit from that good only if they survive to see the result of their
good deeds. Otherwise, the party that will form the successive government will
enjoy the benefit. We have seen this recently, when the UPA-1 government
enjoyed the fruit of seeds sown by NDA-1 government.
I am sure PM Modi is fully aware of this and he would make sure
that he survives long enough to enjoy the feast of all structural reforms he is
trying to implement.
Ø
In past one decade corporate India has invested
huge amount of money in creating capacities. Many of these capacities,
especially in infrastructure and real estate sector, have been created without
bothering about the present demand conditions. Consequently, a significant
amount of these capacities are economically unviable. Promoters who created
these capacities, bank managers who funded these capacities, and investors who
provided equity to these promoters and lenders - all are in distress.
There is no argument against need for these capacities. The demand
will also come in next few years. But the question is who will enjoy the feast.
The bank managers would have retired or shunted out for his poor performance.
The promoters would have diluted his equity substantially at distress price.
The equity investors would have booked the loss.
The Brahmins and Crows - the new bank manager in whose tenure
these capacities will become viable adding to bank's profitability, investors
who will buy equity at distress prices and acquirers who would be managing the
show - will feast on the misery of others.
The conclusion is simple - Growth is critical component of life.
But growth by at the cost of sustainability only benefits the Brahmins and
Crows!
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