Thursday, March 16, 2017

The road ahead - 2

"You have your ideology and I have mine."
Khalil Gibran (Lebanese, 1883-1931)
Word for the day
Arithmancy (n)
Divination by the use of numbers, especially by the number of letters in names.
Malice towards none
Business people who abused PM Modi for Demonetization, should not rush back to his fold.
You don't know what's coming next!
First random thought this morning
The recently concluded assembly elections in Goa and Manipur have again brought to the fore the debate over the role and relevance of governor in the state administration.
It is an undisputed fact that most governor appointments are political in nature, and are made by the party running the central government of the day with a view to seek favor in return, should a situation arise in the state.
The best way out perhaps is to abolish the office of governor and assign his constitutional duties to the Chief Justice of the High Courts of the respective states.

The road ahead - 2

 
“…democracy ruins itself by excess-of democracy. Its basic principle is the equal right of all to hold office and determine public policy. This is at first glance a delightful arrangement; it becomes disastrous because the people are not properly equipped by education to select the best rulers and the wisest courses”.
"As to the people they have no understanding, and only repeat what their rulers are pleased to tell them";
“to get a doctrine accepted or rejected it is only necessary to have it praised or ridiculed in a popular play. Mob-rule is a rough sea for the ship of state to ride; every wind of oratory stirs up the waters and deflects the course. The upshot of such a democracy is tyranny or autocracy; the crowd so loves flattery, it is so hungry for honey, that at last the wiliest and most unscrupulous flatterer, calling himself the ‘protector of the people’ rises to supreme power.” (Plato as quoted by Will Durant in “The Story of Philosophy”)
In the heat of 2014 general elections, PM Modi promised that if elected to power, he will bring back all the black money stashed abroad. The estimates of Indian black money in foreign lands, though mostly unsubstantiated, were mind boggling. He allegedly said that this money would be sufficient to give rs15lacs to each poor household in the country.
Though everyone appreciates that these were purely rhetorical statements made in the heat of fierce election contest, opposition leaders have made it a point to criticize the prime minister.
In my view, this criticism is unfair and uncalled for.
But at the same time, it cannot be denied that seven decades have passed since India attained independence from the British rule. This period has seen Indian economy growing to become one of the leading economies in the world. Unfortunately, the growth has remained mostly unequal and unjust to a large extent. The time therefore is ripe that an extensive effort is made to minimize the economic disparities amongst people.
Conventionally the effort to bridge the economic divide is limited to wealth redistribution through taxation and subsidies. In Indian context, bribery has also been a major channel of wealth redistribution.
However, in Indian context, these conventional methods are least likely to succeed in meeting the objective of economic equality, in my view. Because (though many may like to disagree with me on this) in my view, the structure of traditional Indian businesses and democracy itself remains quintessentially feudal. This structure does not favor efficient wealth redistribution.
PM Modi has this challenge at hand of breaking this nexus between feudal business and politician, to pave way for the efficient redistribution of wealth.
Those who consider good politics as bad economics must appreciate that an economy of Indian size and character would need 60-70% people "Earning-Saving-Consuming-Investing" to grow on sustainable basis. With 20-25% "Earning-Saving-Consuming-Investing", the growth cannot be sustainable.
....to continue tomorrow.

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