Business to the Buddha

Tag: Politics

  • Politics, self-interest and the results

    I started writing on self-interest. However, the larger scheme of things conspired to include politics in it. Most of the time, self-interests do less good than the general betterment of everyone. All of us apply self-interest in many ways. At times, the actor is unaware that his/her actions are driven by self-interest. However, most of the time actions are more motivated with the expected end result in mind – self-interest. Self-interest that is called profit maximizing approach in game theory. However, in game theory you’ve an opponent; here the case we’re going to discuss is related to self vs the larger public good.

    A humble Indian farmer

    Recently, a final closure of Brexit has happened, we have seen farmer protest in India and even the western countries are talking about it as if the law impacts their farmers.

    Self-interest

    The king was talking to his confidant. The confidant was none other than his younger brother. He told his brother – why are you just a spectator in the courtroom? We have studied together, you know the subjects, law, and Ethics as much or better than the other ministers. You must take part in day-to-day activities and decision making discussions.

    The confidant was very insightful; he knew the functioning of the courtroom, decision makings of the kingdom, and a great deal about the ministers. A great observant, yet a humble right-hand man of the king. He responded – you are correct my brother, it is not that I have limited understanding. In the courtroom, many have their self-interest ahead of other things. Many times decisions are not made in the best interest of the kingdom but in the self-interest of the most powerful in that regard.

    I will quote a recent example. It is regarding our dispute with the neighboring kingdom for the distribution of water of the common river. Our ministers proposed a solution either based on incomplete information, or the detailed information was not shared with the committee. The reason? Our minister wanted to influence the decision in support of the other kingdom, reasons may be best known to the minister. The whispers are that minister’s brother-in-law lives and own the land touching the river and could benefit most from our agreement. The minister is corrupt and it is not unknown in the whole ministry; am I right, brother?

    The King knew all of this. He took a pause and responded. At times, you have to close an eye for the larger good of society. Let us assume we had not budged on the water agreement, it might have resulted in a war – however, limited it could be.

    The confidant said – that does not absolve you of your duty as a king, you have the power to get rid of the minister! The minister, though was not as powerful as the king, knew the inner workings of the ministry so he could rebel. At last, the king was also working in the self-interest of staying in power.

    Results

    This is how even the less powerful control the kingdom. This is how democracy undermines good governance too. An example is recent farm law protest in India. Though personally I could not make my mind for or against it as such. At times this is how organizations are at the ransom of these less powerful yet resourceful people. At times these insiders can damage the organization more than the benefit they may offer. Greed and self-interest can make a kingdom or government or an organization average or at worst failed one. There are umpteen examples of this – the Kuru clan in Mahabharat, most likely Pakistan (or other examples of the Middle East of the early 2010s) in coming years or read the HBR article. 

    In essence, though I find it difficult to write – “politics is not bad”. I may not be particularly good at it. However, the self-interest that drives many actions and decisions end up making few organizations or kingdoms average or moderately successful if not a failure. And lastly, self-interest defeats the concept of interdependence – interdependent co-arising.

  • Melting pot







    I am sure when we read the title we all will speak about culture and nation. My take apparently is no different. India as a country, culture and in terms of way of life has been a melting pot of thoughts. If we look at Mahabharat time – there were many kingdom fighting from one side or the other in the war. The range goes from present day Afganistan to South East Asia and Kerala.

    Afganistan reminds me of Bamiyan Buddha statues. The smaller statue was so big, check photo (sourced from Wikipedia), that a man standing at the foot measures only till the ankles. The statue reminds me of Gwalior fort Jain tirthankar’s statues. No wonder, when I saw them some had disfigured heads.

    The Buddha was basically from Nepal. He came to India for his quest of spirituality. India at that time too, was a confluence of different ways of life. Buddha studied with same master’s who were worshipers of fire, some teachers were of Yoga and Indian philosophies. After learning so many things we was still not self realized. After six years of hardwork, following many different teachings – including fast he was emaciated and almost on the verge of death. That day he was enlightened. Lord Mahavir was his contemporary – he had a different teaching. Both the teachings blended in Indian culture.

    Indian culture basically accepts many different approach of spirituality and religion. The best blend you can see is Bhagvad Geeta. It talks about Bhakti, Gyan, Dhyan and Karma yoga etc. Every chapter in the book is a type of Yoga – yoga means addition. What does a melting pot do – it mixes everything. Right? That is what Yoga is. I have written on Yoga earlier too – including a debate and court case in the US – whether Yoga is Secular or no!

    The question on secularism moves me to another dimension of India. We are secular, and in last couple of years Indian intellectuals (apparently others are equally intellectuals but are considered lesser) have returned awards for lynching of a Muslim Indian citizen. It was a sad incident in the state of Uttar Pradesh during Akhilesh Yadav Government (Samajwadi Party, which apparently is more Muslim centric political party). Recently, another lynching happened – a police officer was killed – muslim Indian citizen – in the state of Jammu & Kashmir, this time state Government is a coalition with BJP (more Hindu tilting political party). Last time the intellectuals returned awards, this time no one came forward! This is all economics of power.

    Economics reminds me of an interesting fact of Indian politics. The best economists – Mr Manmohan Singh and P Chidambaram – came up with farm loan waiver in last decade. When a non economics expert can understand that it is not a solution why a renowned economist takes such a decision – a melting pot you see. The decision was a confluence of politics in economics.

    All the above thoughts are in a melting pot here. My thoughts mostly are  multi-directional – so this blog moves from socialism to capitalism and spirituality to business etc. The melting pot includes few dreams I have – one is here, add to it wish to help Sindhutai Sakpal‘s Orphanage, Art of Living foundation projects and rainwater harvesting in Malwa region of MP. I wrote to one District Magistrate, never received a response, not even from CM’s office – is this a participative government?

    Melting pot was this week’s LBC topic where Maria, Rummuser, Ashok and Shackman write weekly. You can visit their blogs and read their thoughts on the topic.

  • Leaking pipe, economics and politics







    Recently I went to meet one of our relatives. We were generally speaking and his plumber came, I asked what happened? He said – Pravin, we requested our plumber to fix the leaking pipe. Later we asked him to put blocker from where the leaking pipe was having water inlet. I said why did you solve the problem of leaking pipe twice? He said the fixing the pipe with m-seal and other plumbing means was cheaper. But second time you had to put a blocker, isn’t it? It costs and your plumber might have charged you twice too. I curiously went to check the place – being an insider to this family it was alright. I repeated – you tried to fix a wrong problem and you did it twice! and also by putting blocker you made the pipe irrelevant too…

    The same keeps on happening in our society be it bailout or loan waiver to farmers. Those who cannot get in such beautiful moral hazard go to UK or become part of crony capitalism.

    I was speaking with my wife today, she said “loan waiver is not a permanent solution”. Yes she is right. This endemic was started by government of our own very famous economist Mammohan Singh and his another gem of an economist finance minister Chidambaram in 2008. It was a waiver of 60,000 cr, largely to win upcoming election. Manmohan Singh government won that election too, just to end up embroiling themselves in scam after scams. The scams resulted in public anger and protest – India Against Corruption. There are long lists of corruption under the Manmohan Singh government however the point of discussion currently is farmer’s loan.

    The kind of waivers offered mostly result in moral hazard. Just imagine, if I am a farmer – this year monsoon is expected to be good – why would I care to pay my loan EMIs when everyone is getting sops? The other trouble is – even after 70+ years of independence of India we are more dependent on monsoon rather than our skills of farming! Connecting all the rivers was a dream project of Atal Bihari Vajpayee 10+ years back, yet it has to see light of the day. Furthermore, we ignore solving the problems we created ourselves such as depleting underground water level. Mostly, the reason is – we are individually smart but collectively dumb. We assume that I cannot control where the underground water goes – why should I?

    Imagine, the amount of 60,000 cr farm loan of 2008 – had it been utilized in making canals and rainwater harvesting, educating farmers for better methods of farming and technology interventions in agriculture and post harvest we might have been able to solve the problem to some extent if not completely. The other thing to note is – how can we ascertain the benefits are transferred to the right people? Those who have small land holding may be taking loans from local private lenders, also they might not even have their credit ratings for bank to offer them loans. Where exactly does such huge amount go?

    Now think again about where the government gets this huge amount from? Have you ever seen your bills? Did you see Krishi Kalyan Cess? Government generates parts of such sops from us when we pay taxes – indirect tax. This is a problem to worry for middle class only. They earn and pay income tax, they buy and pay Krishi Kalyan Cess and when farmer’s are on strike they pay exorbitant amount for buying vegetables too. Mostly this expensive vegetables are procured by middlemen at cheap prices – all cash business less or least tax with black money. A better option for middle class Indian is to either become a farmer and get loan waiver or become an industrialist take loan and leave India!

    When I completed my sentence – “you tried to fix a wrong problem and you did it twice!… …The leaking pipe was old and rusting, you should have changed it at first instance. why don’t you fix it permanently? My relative said “why should I? It is a rented property? I may go next year, someone else will come, so I am fixing it temporarily.” Same is with the governments – they solve a problem as temporary fix – farmer loan waiver for winning next election and not solving problem which causes farmers to take extreme step of committing suicide or protesting for loan waiver.

    According to the Bank of America Merrill Lynch the farm loan waiver will cost 2% to the GDP of India by 2019. This wrong precedence was set by two of the most knowledgeable economists of India – Mammohan Singh and Chidambaram. Go figure what it means to be subject matter expert!

  • Farewell 2016







    Wish you a Very Happy New Year.

    Cherish the moments you enjoyed and learn from the mistakes made – that he how we must move on in life and celebrate. Isnt it? The year 2016 was eventful. Every year is eventful though New Year blog 2016, New Year blog 2015, New Year blog 2014, New Year Blog 2013, New Year blog 2012, New Year blog 2011  😉

    Terrorism – There is a new common for the world – terrorism – so that was as usual, religious extremism has not only kept its target India but added Europe to it. These apparently look like some unorganized terrorist attacks, but the end of many of these thread is common. The list is not small – https://en.wikipedia.org/wiki/List_of_terrorist_incidents,_2016 We need to ask ourselves – when are we going to be “human” behave like humans? Did we learn anything from this in 2016? In fact I wrote this and heard 2017 has started with terrorist attack in Turkey! Waste! These good for nothing parasites on the face of earth do not understand what nonsense they are involved in, if some religion teaches this that is not a religion at all.

    Business & Economics – There were few big developments in the year, first UK voted to leave European Union, second Wells Fargo of US was found out to be involved in a big scandal and third India demonetized high denomination currencies. Here is a wonderful Ted Talk on UK’s vote to leave EU.

    Wells Fargo scandal has no lesser words for taking strict actions against the high, mighty and decision makers who looked for Q-o-Q results and made up books, profits and rewards the culprits. You must watch this video to know how

    Demonetization in India shook many within India, and to utter surprise three others countries planed to follow suit – http://qz.com/867724/three-countries-across-three-continents-after-modis-india-demonitisation-has-spread-to-other-countries-too/

    What banks did post demonetization in India must be a subject matter of scrutiny same as Wells Forgo in the US.

    Another battle happening currently in India is Tata group Vs Cyrus Mistry (the story is yet to unfold fully in 2017). As of 10th Dec 2016 (source), Investors of Tata group have lost about Rs 81,000 crore (810 Billion INR) in seven top Tata group companies since October 24 as Mistry was replaced by Ratan Tata as Tata Sons chairman.

    Politics – Donald J Trump the next President of USA. It was most surprising and unthinkable when campaigning started last year. I wonder if what inspired Trump was mockery by Obama in white house in 2011.

    Corruption – There was enough and more hue and cry about Panama papers. Corruption of many rich people worldwide. What is Panama papers? Watch the following video to know more. We must ask each one of these filthy rich people – what would they get by making, hoarding and rolling so much money all over the world? Remember we all leave everything here, including the wealth.

    Somethings caught my eyes, were AT&T’s acquisition of Yahoo, LinkedIn’s by Microsoft and the phenomenon called Pokemon Go! https://techcrunch.com/2016/07/11/crunch-report-pokemon-go-mania/
    Pokémon Go added $9B to Nintendo’s value, global rollout continues within a week
    Pokémon Go has an estimated 7.5M U.S. downloads, $1.6M in daily revenue within a week
    Will 22K people turn up to catch Pokémon in San Francisco and what less – Robbers target Pokémon Go players in Missouri.

    What all these events have taught us? Humanity is important than a religion and terrorism. Globalization needs a perspective of interdependence at times we need to let go of some control, at times be need to think of inclusion. Every company has to be responsible, whether its Wells Fargo or Tata group. Never mock anyone, even if you are the president of the worlds most powerful, economically strong country. You will leave your wealth here only, pay your taxes instead of evading it. Legitimate money will make you and your money more respectable and in the end you would leave your body too here, wont take anything back with you. If you are doing something, put your heart and soul in it, make it awesome like the Pokemon Go!

    This was LBC topic for farewell to 2016, I am late, was bit occupied with a preparation for a workshop on IPR held yesterday 31st Dec. You can read other blogs of other Loose Bloggers Consortium members at Ramana Uncleji and Shackman.

  • Panama leaks, IPL & the rulers







    Kill! Kill! Kill! the arena was full with the viewers and they were shouting, it was horrific scene. The gladiator was looking at almost a corpus – the other gladiator – who had lost the battle. Fate of this gladiator was in the hands of winner or the king. People were giving their verdict ‘to kill the losing gladiator’. What was wrong with these people who were enjoying such brutal and life taking game? I suddenly woke up and started thinking about this dream.

    The arena has changed, shouts for kill is changed too and now instead of the queen asking us to “eat cake, if we do not have bread.” The politicians are serving us IPL and other trifling stuff to divert our attention.

    No wonder there is widespread corruption, Panama Leaks seems to be the tip of the iceberg. Can we doubt of existence of 100s of other law firms in Panama or any other tax heaven? If there are ten more such law firms worldwide, what number we are looking at – in terms of corruption or black money? The problem is in most countries, let me take India as a case in point (as I live in India), there may be parallel everywhere though.

    Secondly, heard about few of the World Cup T20 matches were fixed. Vijay Mallya haggling with banks after eating thousands of corers for settlement. On top of this haggling RBI governor stating – Releasing defaulter names can ‘chill business activity’. We are fighting with each other on who should or must win, who is in your or my dream team and here the whole economy is at the ransom of those who are so powerful and mighty and yet in so much debt (and defaulted on debt) that if their names are made public economy of country will be standstill! At the same time, it is beyond doubt that those who have defaulted have a lot of money stocked in tax heavens. Otherwise how come Dr Vijay Mallya say that he can pay 4000 Cr in coming days. Why didnt he pay this amount before KFA becoming defunct?

    It is not just about one man. It is about those thousands who have stocked money and poor people of their country are dieing of hunger or more recently of thurst (In Maharashtra India) or are jobless. Once again quoting – Mr Rajan governor of Reserve Bank of India Panama Papers: Dangerous to question the legitimacy of wealth! Seriously! If people have legitimate wealth why would they hide it in tax heaven? Well, its likely that the answer will be – according to xyz legal framework created by (many of the corrupt politicians as the law maker) the then Govt it is legitimate to under Liberalized Remittance Scheme to put your money out of the country.

    It is like 1. making rules for your own and close clouts convenience and 2. than hiding behind the same to make your ill gotten  money the garb of legitimacy.

    FarmerIn all these – we are trending on twitter about local teams matches as hashtags! Forget that, we are not even considering that people and their cattle are thrusty but we are enjoying the tamasha of IPL where a lot of water is going in drain. Again, what is the argument? Maharashtra Govt may lose crores of rupees if matches are moved out of state. What is the probability and assurance that Govt will use the revenue generated by IPL for 1. prevention that is providing water to drought hit areas and 2. correction that is taking steps so that in future we do not face drought like situation.

    Governments (in effect rulers) earn most in the tragedies of citizen – be it flood in UP or earth quack in J&K or drought in Orisa or Maharashtra even floods! We’ll forget all the natural or man-made calamities and go back to our TV set or stadium and start shouting – six, or Kohli or slogan of a team. On parallel worldwide – for IPL in India, we’ve soccer in the Europe, NBA, NFL in USA and so on!

    This time the shouts of KILL are changed that is it. This time rules don’t ask us to eat cake if there is no bread, they show us the revenue generated in Govt tax collection. But problem remains – Forget terrorist! who knows the french revolution this time may explode the whole world?

    Image 1 source – http://famouswonders.com/wp-content/uploads/2011/12/Depiction-of-Gladiator-games-by-Jean-Leon_Gerome_Pollice_Verso-400.jpg

    Note – Author referred to RBI Governor’s statements, but believes the rot in the system is political & crony capitalistic.

  • Served by biases







    Though the technology has made things / opinions / news available and discoverable, however this has resulted in information overload as well. This information overload has made us divide, restructure and focus on what we (as an individual) want to read, know and learn. Look at the image, for example from The Indian Express news site. There are many such examples, where we are served by biased news (in India many people call it paid media). Recently, Network18 group was acquired by Reliance group.

    What you want to readThis content customization or focus (in marketing called as targeting) of each one of us is actually alienating us from many realities. Reason for that is – we either do not know what actually happened but are bombarded by the other side with their perspective. In that case responsibility lies with us to know or try to understand what is actually happened. Thanks to the customization and therefore negative information we have already received from our “sources” we do not know what is right and if something is serious. I have been occasionally termed biased when I tried to provide different perspectives. Tough time! one has to live through it.

    Take an example of environmental damages. If you followed environmental cause related opinion makers you could know something wrong is happening, but if you are just following weather reports – you would say everything is ok! this year this typhoon, tsunami, hurricane, earthquake happened. Why? Well, have we asked these questions? Can we identify or try to search for the reasons for such changes in environment? Monsoon in India is delayed this year, can we ascertain reasons; and if we can avoid the reasons.

    We make our economics / political / national / Environmental opinions based on such biases. Take an example of economics. Capitalists’ project their system is right, socialists (communists) projects wrongs in the capitalists approach and vice versa. Is there a possibility when we think and design something which tries to bring good from different systems? Think, open your mind and look at the bigger picture. Should not we ask ourselves – are we served unbiased information or we are seeing what powerful people want to show us.

    Disclaimer – The author has no intentions to tarnish image of Indian Express/Network18. It was the easiest available screenshot for providing author’s perspective.

  • #CoalGate, corruption, politics & economics







    A few days back I completed this book Globalization and is discontent by Dr Stiglitz, a nobel laureate. I wrote on that recently – Interdependent co-arising a macroeconoics example. Besides this macroeconomics example, I had this intra-country example of the same concept of interdependent co-arising. Stiglitz has written so many things more than 10 years back which are happening in India currently. However, here I am just interested in quoting a small part of the book which relates to the corruption of coal mine allocation in present day India. This example is from page 71 of the book –

    …

    There is more to the list of legitimate Complaints against Foreign Direct Investment (FDI). Such investments often flourish only because of special privileges extracted from the govt. While standard economics focuses on the distortion of incentives that result from such privileges,  there is a far more insidious aspect: often those privileges are the result of corruption the bribery of govt officials. The Foreign Direct Investment comes only at the price of undermining domestic processes. This is particularly true for investments in much oil and other natural resources where foreigners have a real incentive to obtain the conversation at low prices.

    Moreover such investment have other adverse effect- and often so not promote growth.  The income that mining conversation brings can be invaluable but Development is a transformation of society. An investment in mine – say in a remote area of a country – does little to assist the development transformation, beyond the resources it generates. It can help create a dual economy, an economy in which there are pocket of wealth. But this duel economy is not a developed economy. Indeed, the inflow of resources can sometimes actually impede development, through a process that is called “Dutch disease”

    …

    So effectively, what Stiglitz said was bribing of officials for mining in developing / undeveloped countries. Further, the dual economy this FDI may create is not best for country to develop. I would take this example of Dutch disease in my next post – “Business to the Buddha”.

    Here what I want to highlight is this – the current issue in India – #CoalGate scam is a clear example of what Stiglitz wrote more than 10 years back. Indian Prime Minister – Dr Manmohan Singh – being an economist might have been aware about this and perhaps therefore kept Coal Ministry with him. This is just an extrapolation. Otherwise why would Law ministry and Law minster would want to change parts of report? According to the Supreme Court of India, the changes are Heart of the report.

    After reading the book – Globalization and its discontents – I realized that Stiglitz is not against Globalization but against the way Globalization is happening. So, when you read the above part, you should not infer that Stiglitz is against Globalization.

  • Power corrupts!







    It is an old saying – power corrupts and absolute power corrupts absolutely. I was wondering on the saying and the recent news. I thought to understand how ‘power’ has morphed in different forms, starting from the prehistoric muscle power to money, economy and authority.

    For a long time power was defined as muscle power of individual. When humans created concept of ‘money’ slowly economy took precedence over muscle power. European countries colonized more than half of the world and economic superiority took precedence worldwide. Until now economic power has been the major factor influencing force. So, countries having economic influence changed the world (for good or bad is disputed), such as oil crisis of 1970s, slow down of 1980s and recession of the last decade (which still continues and perhaps result in double dip).

    Then I started looking at ‘authority’ as power. Recent news about Egypt and arrest of Indian politician triggered this thought in my mind that authority is one major factor to prove the saying – “…absolute power corrupts absolutely”. We have debated enough on democracy and dictatorship, which one is good? There is no debate over this – authority given in either case corrupts.

    We see that power corrupts but who gives the freedom to others to exercise those ‘right’ to influence? Are we not equally responsible for the state we are in? Should not we take charge of ourselves and – rather than being spectators – act to bring the change?