Wednesday, April 12, 2017

Seeking escape velocity

"Political democracy cannot last unless there lies at the base of it social democracy. What does social democracy mean? It means a way of life which recognizes liberty, equality and fraternity as the principles of life."
—B. R. Ambedkar (Indian, 1891-1956)
Word for the day
Frenemy (n)
A person or group that is friendly toward another because the relationship brings benefits, but harbors feelings of resentment or rivalry.
Malice towards none
हमें उनसे है वफ़ा की उम्मीद
जो नहीं जानते वफ़ा क्या है|
#कुलभूषण जाधव
First random thought this morning
London, Paris, Brussels, Stockholm - in recent past terrorist strikes have happened at places usually considered most safe and secure.
One, it surely and certainly signifies that extremism has taken roots in most geographies, and need not be imported from anywhere now. The security paradigm therefore needs to change.
Two, resisting immigration and erecting walls may not be an appropriate security solution. A racially diversified society could much safer than a parochial society threatened from within.

Seeking escape velocity

In past one year or so, a number of orders of government, SC and NGT have created intense debate in the society. The most prominent of such orders include abolition of high denomination currency notes, restrictions on production, sale and consumption of beef, closure of illegal abattoirs, restrictions on sale and consumption of alcohol, prohibition of manufacture and sale of vehicles not complying with BS-IV emission norms, etc.
The economic and financial experts have mostly criticized these orders as unjustified and prejudicial to the economic interests of the country in general and investors in particular.
Loss of revenue, loss of jobs, and risk of antagonizing foreign investors, are the primary arguments extended by this group in the support of their argument.
I personally do not find much conceptual or fundamental basis in their line of arguments. Mostly, these arguments seems to have been made as a matter of record, that could be used by respective experts later to claim "I told you so" high ground.
I say so, because I do not see any of them placing any material stake, financial or otherwise, on their arguments.
The social groups and political parties have expectedly reacted on social, religious and party lines. Again, these groups are supporting or opposing a particular move as per their convenience, rather than conviction.
In my view, evaluating the changes that are taking place in socio-economic milieu of the country from conventional wisdom may not be a good idea in present day context.
As the outcome (so far) of the sudden move to abolish 86% of the currency in circulation shows, the country (people and aspirations) has changed and the experts are lagging behind in assimilating the change. This perhaps is always the case. They would certainly change their views as more empirical evidence emerges.
Insofar as my personal view is concerned, I feel the Indian Economy is positioned for takeoff. It needs escape velocity to break past the gravitational force that has been holding it back for past few decades.
At this stage it is necessary to take some massive steps that would shake the ground, and loosen the gravitational hold over the economy.
The currency ban move, for example, has reinvigorated the financial and taxation system of the country. Inclusion and compliance are two massively positive outcome of the move. Historically, these two have been the pre-requisite for evolution of any emerging economy into a developed economy.
Loss of jobs & revenue argument has led to phenomenal rise is firecracker, chewing tobacco and bidi industry in the country for long. Regardless of the fact that these are extremely harmful products. The same logic applies to liquor, unregulated meat & dairy industries.
In next couple of days I shall share my thoughts (somewhat radical though) on what steps could provide necessary escape velocity to Indian economy.

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