Thursday, December 08, 2005
Globalisation is not the solution; it is the problem
Reforms have devastated small and medium industries
Let a Thousand cities and towns bloom
Without free civic democracy we are very far removed from the democratic ideal of ancient Athens. Bangalore, like every other Indian city and town, needs a Pericles. The US has 350 million people in 200 cities. Indians, 1,000 million-strong, should see their future in 500 great cities and 5,000 lovely towns.
The task of the Left is against all irrationalism
- First, anti-democratic movements resembling in some ways the Hindutva phenomenon have mushroomed all over the world; the assault on reason, and the accompanying attack on democracy, are not specific to India.
- Second, communal fascism, even while promoting its own agenda, is, very definitely, engaged also in promoting the agenda of imperialism.
The attack on the livelihoods of the masses that the hegemony of international finance capital entailed, through deflation, unemployment and cuts in social wage, often gave rise to a refracted form of anger, not against the oppressors but against some other segment of the oppressed themselves, breeding ethnic, religious and communal conflicts. Even when there was anger against the oppressors, this itself often took the refracted form of an anger against their skin colour, their religion, their culture, their customs, and their commodities, breeding fundamentalisms in an atavistic quest for piety and purity. But a consequence of this was that others among the domestic population with the same religion and cultural affinities were made targets of attack in an irrational frenzy.
The fact that accentuating unemployment provides a fertile soil for divisive tendencies among the people is well known. Needless to say, all these irrational ideologies do not ever address themselves to the question of improving in any way the conditions of the downtrodden. It follows then that we cannot accept either of the following two positions:
- we cannot support imperialism, and the sundry irrational movements that hitch their bandwagon to it, in their attack on such irrationalism as is hostile to it, in the name of "modernity" and "civilization";
- equally, we must eschew support to irrationalism, that is hostile to imperialism, just because it is "anti-imperialist", overlooking the fact of its being a handmaiden of feudal reaction.
An enormous amount of discontent is building up among the peasantry, not just the landless or poor peasants who eke out a precarious and marginal existence, but the middle and even the rich peasantry which has not escaped the depredations of the imperialist-dominated world market. The task of the Left is to mobilize democratic opinion against all irrationalism, and to link this mobilization with a movement against imperialism, since the phenomenon of imperialism is what underlies the flourishing of all irrationalism in the contemporary epoch. Courtesy: People's Democracy
US is capable of acting as a surrogate global State
- The first is the fact that finance capital opposes such policies; and
- the second is the fact that while the States are nation- States, finance capital in today’s world is international finance capital.
If instead of nation-States there was a global State then the second of these reasons would have ceased to be operative. Since there is no actual global State it would have to be a surrogate global State that can at all contemplate pursuing employment-promoting policies for the world economy as a whole.
The State of the leading capitalist country, the US, though it is capable of acting as such a surrogate global State, and does play this role in certain respect, is nonetheless too much of a nation-State to take on the employment-promoting role of a possible global-State. It would therefore have to be a whole group of nation-States acting in concert that can act as a surrogate global State for purposes of employment-promotion. But even if such a group of nation-States could be persuaded to act in concert to promote global employment, it would still have to confront the opposition of globalised finance capital, i.e. the first hurdle mentioned above. It is not surprising therefore that globalised finance capital uses a whole gamut of weapons to prevent employment-promoting policies, by an entire group of nation-States acting in concert, from taking effect. And one important weapon is to shift the focus to the so-called "export of jobs" to the third world.
In India the peasantry had been insulated against a decline in its terms of trade, arising from factors such as those mentioned above, because of the system of public procurement and distribution that had been in place for quite some time. But with liberalisation this system became substantively inoperative. In short, there is a fundamental contradiction between the adoption of neo-liberal policies and the preservation of democratic institutions. New Age is a publication of the Communist Party of India.
CPI(M) against FDI in retail: Karat
Wednesday, December 07, 2005
Who are Dalits?
The search for a Hindu agenda
- Look at the fate of Argentina, Chile, Colombia and Brazil, the shining hope of the 1960s. They are in one crisis after another today and in shambles.
- And East Asia, the much publicised “Tigers”, had a blowout in 1997, and still to recover.
- Soviet Union is in 16 separate pieces, a happy development but a warning nonetheless.
- What happened to Yugoslavia ? It is in four warring pieces.
It had happened to us earlier in the eighteenth and nineteenth centuries when we were balkanised. It can therefore happen again. Hence we need a new agenda for change to weld the Indian into one corporate mind and entity. This I shall expound in these columns. Our nation is, in fact, at a crossroads of history today. To find our destiny and direction all Hindustanis with a patriotic mindset have to come together to combat a common unseen but alien enemy, and not to traverse again the unfortunate and tragic chapter of our past history when we helped the foreigner to get a grip on the nation in order to settle our own petty squabbles.
Earlier challenges were single dimensional—at the physical conquest level. Today the challenge is highly sophisticated, multi-dimensional and deceptive. The last time we set aside our political and personal differences and came together was to fight the Emergency during 1975-77. Had we not done that, in particular Jayaprakash Narayan and Morarji Desai had not teamed up with the RSS, despite all their past differences, dictatorship would have prevailed and been legitimised through the ballot box in 1977. We came together and triumphed, and restored democracy. Even if that unity did not last long, the main task of restoring democracy was achieved and the nation saved.
Today, the challenge is much more formidable than it was ever in our history. More important the threat to our national integrity embedded in this challenge is not obvious or crude as was when Mohammed Ghori attacked or Robert Clive plundered the nation. These earlier challenges were single dimensional—at the physical conquest level. Today the challenge is highly sophisticated, multi-dimensional and deceptive. What is happening today is a very subtle fragmentation of our national consciousness and an induced acquiesance in our outlook to condone or be impervious to whatever wrong is going on. There is, for example, no national will to enforce accountability on the leaders who make patently wrong decisions, which harm the nation. Or bring to book their lifestyle that is inconsistent with the national spiritual ethos. The Soviet model weakened the Indian economy, set us back, and introduced corruption in India as a way of life. This has made us vulnerable again to the foreigner.
Home > 2005 Issues > December 04, 2005 This renaissance has to be holistic: that is, an assertive global political outlook, a national defence preparedness of long reach, an active awareness of the nation’s true continuing history and it’s Hindu foundation, rapid economic development of more than 10 per cent growth rate, and unshakeable uncompromising resolve to defend the nation come what may, which five commitments must blend into our national consciousness to create a new mind set dedicated to the goal of recovering India’s global pre-eminence in our life time. That goal, however, can be achieved only by first undoing completely the Nehru legacy. It is a minimum pre-condition because Nehruvian ideas are ill-suited for national synergy.
The Nehru legacy is constituted today by the remnants of socialistic economic policy, a moth-eaten tilted ‘non-alignment’ foreign policy, a fraudulent one-way secularism, and an apologetic disdain for the quintessence Hindu tradition, all of which are embodied in the vice-like grip on the Congress Party of the rump descendants of the Nehru family. Hence, the search for a Hindu Agenda must begin with the exorcism of Nehruism and his legacy to the nation.
Buddhadeb's bourgeoisie infatuation
Opening up the socialist space in Indian politics
Reverse Reform in Buddha's Bengal
Socialism is sure to bounce back
America is not a civilised nation
"India will again be reduced to the status of a bonded labour if it is not freed from foreign debts," warned Kishan Patnaik, a socialist ideologue. Patnaik was delivering a lecture in a seminar organised by Vikalp, an NGO on the topic "New Challenges of American Imperialism" held here on Sunday. He also said that in order to fight American imperialism a country should resolve to fight consumerism. "America is not a civilised country as propagated by the media and it is also not the best example of civilisation," said Patnaik. There was barely any opposition to the recent US attack on Iraq. Even a country like China too did not register any strong protest against the US attack. This has only helped to boost America’s policy to dominate the world, he added.
- The tumultuous 1990s transformed the Indian socialist movement beyond recognition with socialists like George Fernandez joining NDA, debunking entire ideological baggage of yesteryears, the criminal-mafia appropriation of social justice under Laloo’s regime in Bihar and most recently the ‘corporate socialism’ of Mulayam Singh in U.P. Against this backdrop, the founding of Samajwadi Jan Parishad in 1994 with Kishanji as its founder President was a significant step towards an alternative brand of socialist politics.
Kishan Patnaik was not only a socialist thinker in his own right, but also probably the most creative of the Gandhians who would expand, enrich and apply the Gandhi-Lohia-J.P. thought to the newer realities of the times. Irreconcilable theoretical differences with Marxism would still not stop him from praising Fidel Castro in following words, “Marxism is an inherent energy which has always heated the hearts of the deprived communities. The heat generated in South American countries is due to Fidel Castro…. Castro is an island of uncompromising resistance among the surrendering nations…” (Samayik Varta, Dec ’03-Jan ’04). Kishan Patnaik adhered to the Gandhian critique of modern civilization and the idea of progress. Most of the developments in late capitalism seemed to him a confirmation of his beliefs.
His prolific pen would react to most of the burning issues of practical politics as well as those of theory, from farmers’ suicides to the ‘clash of civilizations’. The June 2004 editorial of ‘Samayik Varta’ (a journal founded and edited by Kishan Patnaik for nearly three decades) was quick in pointing out that the verdict 2004 was clearly against the new economic policies pursued for the last decade and a half and that the new regime had already started betraying it, a point to remember for all those who wish to carry his legacy through the present and future struggles.
As a young member of the third Lok Sabha, Kishan Patnaik was perhaps the first MP from Orissa to have raised the issue of starvation deaths in Kalahandi in Indian Parliament. The powers that be did not have the guts to admit that stark reality and efforts were made to sweep the starvation deaths under the carpet of false claims and statistical lies, much the same way as governments deal with the phenomenon of starvation deaths and farmers’ suicides today. Between 1964 and 2004, India has certainly changed a lot, but defying the gloss and grandeur of globalisation hunger continues to stalk the villages of Kalahandi and Koraput as doggedly as was seen first hand by Kishan Patnaik in his early political years. Patnaik never lost sight of this fundamental plight of rural India, and securing the right to livelihood for the people on the margin therefore always remained central to his politics and to his vision of development.
National governments are getting marginalised
- Your comments on the outcome of the WTO ministerial meet in its totality.
There were two objectives, essentially from the point of view of developing countries. One was the implementation of old issues and the other related to new issues. A promise was made earlier that the developed countries such as the United States, Japan and the members of the European Union would reduce their agricultural subsidies and that would open the market for agricultural products from developing countries. The U.S. had promised that by 2001 it would reduce the quota restrictions on textiles by about half. None of these promises materialised. What to say of reducing subsidies, developed countries increased subsidies to the tune of $260 billion. As for textiles, in which we have a major interest, the U.S. has reduced restrictions by about 5 per cent instead of the committed 50 per cent. On the other hand, developed countries have been resorting to anti-dumping provisions much more than in the past. We were looking forward to the provisions of Trade-Related Investment Measures and Trade-Related Aspects of Intellectual Property Rights especially as we have had tremendous problems in the fields of health care, medicines and research.
- Does the final declaration reflect India's concern over the credibility of a new round of negotiations when existing agreements are yet to be fully honoured?
Our main question was that when earlier promises have not been fulfilled, what was the credibility of promises in the second round? It is like writing a cheque again when a previous one has bounced. We were apprehensive that even if we were to go for a second round, what guarantee was there that it would be honoured? We have received the brunt of liberalisation. While we opened our agricultural markets, developed countries heavily subsidised their own.
- Very little ground was gained on a textiles agreement. Was it a setback or a compromise to get issues like investment, government procurement and trade facilitation off the immediate negotiating agenda?
There was always a clear agreement on textiles but the U.S. muscles its way through each time when it comes to honouring it. The substantive point is that the issues raised in these rounds have an adverse effect. The kind of investment regime they want to bring will reduce national governments to having no role. National governments will have no regulatory authority. On the question of transparency in procurement, questions will be raised about what we procure from our farmers and that will definitely affect our Public Distribution System. They say we should have a "give and take approach" on textiles as they did not get what they wanted on agriculture. How many times are we to encash the same cheque?
- What is your opinion about India's credentials as a leading member of the South at the WTO?
One achievement that is being talked about is in the area of compulsory licensing. But we have nothing to gain on anti-dumping, agriculture or textiles. All the other issues are open to negotiations and would be taken up after two years. But if one has not been able to intervene at the entry point of negotiations, what to talk of the end? We see global capital and governments of developed countries using the instrumentality of the WTO in imposing their own goals and priorities on the world economy. Governments have to take their people into confidence. Some of us told the Prime Minister, let us have a discussion on the WTO talks and take a stand - the country's stand. At least in Doha, the Indian delegation could have asked for a vote. Even if we were alone we could not have been thrown out, although this is what India has been afraid of - of being thrown out of the WTO. Expelling a member also requires a two-thirds majority. Had India been organised it would have been different. A credible leadership would have emerged. Smaller countries have no confidence in India. The SAARC (South Asian Association for Regional Cooperation) countries should unite. Within these countries, it should be the right of Parliament and Parliament alone to decide whether to become part of international treaties or not. It should not be left to the government.
- What do you feel about the future of the WTO and the multilateral trading system, especially in the context of the global economic slowdown and growth of regional trade blocs?
We have endorsed the multilateral system of trading where the obligations of developed countries are imposed. We favour the multilateral system but it has to be fair. It is like the loaded dice incident in the Mahabharata. The majority of expectations have not borne fruit out of this system. Added to this is the poor state of our small-scale sector and the bigger industries. When vital sectors of the economy get affected, where will the purchasing power come from? The political issue is that national governments are getting marginalised. An elected government is answerable to its people. To whom is the WTO answerable? Anything under the sky can become a WTO subject. They have a dispute settlement mechanism but whenever it is settled that becomes a law for countries. Democracy is getting truncated more and more and nation-states are being taken over by bodies like the WTO.
V.P. Singh against WTO meet
Tuesday, December 06, 2005
Create the opportunity for people to enter the market
Investing is quite like a game
- This game is about gains and returns: The game of investing is all about getting your money to grow by putting it to use in assets of value. So you win when the money you invested grows. Now this can happen in two ways – capital gains and regular income flows. In case you invest your money (capital) in buying land or shares you would win if the price of the asset (land or shares) grew over a period of time. The profit that you get from the sale of the asset at an increased price is called capital gains.And the dividends or rent you get on a regular basis from the asset is called income flow. On an investment you could get both capital gains and income flows or either or them.
- The risk factor: Investing always comes with a risk factor. There is always some sort of risk involved in investing. So when you invest in shares, there is a risk that the price will fall and you would lose your money. When you invest in a safe and secure bank savings account, chances are that you might not beat the inflation rate and lose out on the value of your money. So bear in mind that there is always a risk associated, a chance associated with investment.
- The risk and reward relationship: Now, there is a direct relationship between risk and reward. Generally speaking, more the risk more is the reward. Philosophically speaking, the reward is meant as an incentive for the willingness to take a risk. So more the risk, more the reward. So the game the investor is playing is to maximise the reward while minimising the risk. The dream would be to have no risk and maximum of rewards. Smart investors keep looking out for such occurrences. But then these utopian occurrences where there is no risk and maximum rewards are far and few. Now, there are avenues where the risk would be maximum and the rewards would not match these rewards. Needless to say, such investing avenues are to be avoided.
- Risk first and then rewards: While this relationship is easy to understand. It is important to note that you have to take risks first and then the rewards follow. You need to commit your money first and then get the rewards. And risks associated with investing keep changing over a period of time. A company that you invested in three years ago might become a risky investment as the profile of its business changes. Or a piece of land you brought five years ago might lose value because it might be located in an earthquake zone. The point is risks keep varying from time to time. Smart investors have the vision to look out for risks and reduce the their impact, when they arise.
All in all, as investors you would play to see the value of your money grows over a period of time by investing into assets, or you get a steady flow of money from these assets. You get rewards. But, investing involves risks and usually more the risks more the rewards. Sometimes, there is more risk and little or no reward, The winner in the investing game is someone who keeps an eye on reducing risks and maximising rewards. Happy Investing! Canbank Mutual Fund
How to pick the right Mutual Fund? Returns
Invest for the long term: Unleash the power of compounding
Rupee Cost Averaging: A sound Investing strategy
Value Averaging: Another angle to maximize returns
Investing requires discipline Asset Allocation Basics
Mutual Fund Guru - Bogle’s Mutual Fund asset allocation
What a prudent investor should do
A baby kangaroo is well protected and safe in its mother’s pouch even when she leaps.
Ensure liquidity
A giraffe feasts on the food stored in one of its four chambers, when it is hungry.
Diversify investments
A squirrel hides its nuts in different places in the woods.
Be patient
A crane stands absolutely still in water for hours together for its catch.
Invest early
A zebra foal gets a head start in life as it stands up within an hour of its birth.
Invest regularly
Ants regularly store more food than they consume. Typically what a prudent investor should do.
Will FIIs continue to woo Indian markets?
The greatest wealth creation opportunity
The Indian Express Sunday, January 04, 2004
- SENSEX 6000 is a milestone of significance for me personally, for my fellow investors, and above all for India.
- Hence, the constant barrage of scepticism about the sustainability of the rise and the worry-warts fretting over some imaginary scam is most irritating.
The BSE PSU index has been the best performing index. The greatest beneficiary is the Government of India— where is the question of a so-called “Scam”? The pace and the quantum of the rise in the Sensex have surprised most Indians, but markets being markets, they always tend to surprise. To the wise, in any market, ‘the ticker tells all’ — and what a ticker we have had. While all attention is focused on the Sensex, we must not ignore the tale of the other indices. Most broader indices have outperformed the narrower indices. The Advance-Decline lines, and the new highs and new lows are all signals of unprecedented breadth in the markets.
- But cynicism is still alive and kicking. It is a pity that such fear-mongering is depriving my fellow investors from the greatest wealth creation opportunity of their lifetime. It is my deepest regret that it’s the FIIs and not my fellow Indians that are doing all the buying, and making all the money.
- Wake up fellow Indians, this milestone of Sensex 6000 must help us in recognising the transformed India which can surely with the effort of all us become one of the economic powerhouses of the world and consequently a world power. Please, please unshackle yourself from our inherited cynicism and break the inertia of our minds about our country and its future.
Please remember, this is not some politician or economist writing this, but an investor for whom reality is a religion, and price is omnipotent. (Jhunjhunwala is a BSE broker and an active investor.)
FDI is good cholesterol, don’t oppose it
- FDI brings to the recipient country not only capital and foreign exchange, but also managerial ability, technical knowledge, administrative organisation, and innovations in products and production techniques, all of which are scarce commodities. These benefits are not immediately apparent in the economy because they take time to develop. However, there is enough empirical evidence to prove that with FDI, the economy is better able to provide higher productivity and bigger job pools.
It's a bull run, not a bubble
- Now, the consequences of a 15% compound growth rate are stupendous. If share prices keep pace with sales and profits, a 15% growth implies that share prices will double every five years. That is, the Sensex could touch 12,000 by the end of 2008, and rise further to 15,000 by 2010. Even if profits and share prices average no more than 10% growth, the Sensex will touch 12,000 by 2010. Those levels looks outrageously high today, and some readers might wonder if I have taken leave of my senses. Let me hasten to say that I am not predicting that the Sensex will in fact hit 12,000 in five years. I am merely saying this is the level implied by annual growth of 15% per year.