Saturday, October 30, 2010

Profiteering on the Rural Palate: The Microfinance Way

by Rajarshi Mitra



When Md. Yunus won the Nobel Peace prize in 2006, microfinance was a relatively new terminology in Indian public domain.

Today, within a span of four years it has become a part of a new corporate and business identity. SKS Microfinance Ltd. (a private limited microfinance company, as is evident from the name), made an Initial Public Offering of its shares in the open market; the IPO was hugely oversubscribed with allotment at the upper end of the indicative price band and the shares got listed with a huge premium. The performative logic of corporate world, and the celebratory vocabulary of rising (fast recovering) India would have considered the SKS fairytale a continuum of the success of Yunus’s Grameen Bank, had it not been for a press notice of the Andhra Pradesh Govt. stating its intent to rein in the unrestricted pasture of microfinance institutions.

In the meantime, the unrelenting rise in the share price of SKS has been undone by a corporate feud between the founder Vikram Akula, and the present CEO of SKS.

Microfinancing, as a concept however is as old as the shrenis, or guilds which operated in ancient India, advancing working loans to craftsmen working under the guilds. It operated on a communitarian concept. They were rich contributors of India’s cultural fashioning. Today’s microfinancing organisations try to bridge the gap between organised credit and unorganised labour. They advance loans to rural entrepreneurs who are too poor to qualify for traditional bank loans.

Perceiving the situational gap between organised credit and unorganised labour, the policymakers of our country tried to resolve the crisis through formation of NABARD, Grameen Banks (misleadingly similar in name to Dr. Yunus’s effort) partly financed by the respective state governments, and refinanced of course by the Union Govt through the RBI. Another laudable effort has been the idea of forming SHG’s (Self Help Groups), sometimes financed by the state governments, and sometimes by the Union government through variously named schemes like the Swaviman and Swabalamban.

The SHG’s could be thought of as relics of the ancient shrenis because of the communitarian nature of its operation; a closely bonded group of individuals/entrepreneurs with minimal capital of their own are advanced working credit depending on the merit of their enterprise by the local Grameen Banks. Perfected though experience and adjustments, and solely governed through the logic of its operationability, SHG’s could have been marvel of the Third world.

However, because of operational inefficiencies and the intrinsic time consuming nature of SHG’s (since each SHG is unique with unique business models and propositions requiring unique credit advancements) the whole turned out to be requiring huge gestation periods before the true empowerment came by.

It is here that the privately funded microfinance organisations, many of which were incidentally NGO’s and Non Profit Organisations earlier, chiped in, being lured by the business prospect of the model. Private capital automatically streamlined the process of credit advancement. This streamlining involved packaging the credit advancement into standardised products, depending on the cultural, geographical, and sometimes economical location of the recipient.

Nonetheless, what is less perceived and understood is that this process of packaging involved the corporate guru’s understanding of the cultural, geographical and economical ethos of India. Therefore even as generalisation and standardisation smoothened credit delivery, and therefore lent a streamlined operationability to MFI’s (Micro Financing Institutions) over a considerable geographical expanse, it made credit dictate the nature of entrepreneurship. This is retrograde logic; it is like posing a problem to suit its given answer.

Another, more evident and more dangerous side to market forces dictating the logic of microfinancing is credit recovery. Technically speaking, microfinance loans are termed ‘bad loans’ in banking parlance. Private microfinance institutions, in their zeal to cut NPA’s (Non Performing Assets) risk destabilising the structure of microfinance itself. One is indeed reminded of a by now famous (I assume!!) dialogue from the movie Avatar, “there is one thing the investors hate more than bad publicity, and that is bad quarterly results”; it is indeed the axiom of corporate logic. In the corporate logic of market economies of money dependency, inability to repay loans is inevitable understood as reluctance and disinclination, which is hardly the case every time.

Also because of the structural problems faced by a MFI to reach a rural clientele spread over a huge geographical arena, and the exorbitant cost of funds because of the risks involved, the rates of interest are invariably high, ranging between 21 and 28 per cent. Naturally, in an uneven struggle between corporate social responsibility and profitability, the later is unquestionably the governing principle of such an organisation.

The recent spate of farmer suicides in Andhra Pradesh brought the issue into highlight, setting the AP government into action in reining in the MFI’s, and the RBI into contemplating a cap/ceiling of rates.

In such a scenario, it is indeed hard to conjure an exonerative logic for MFI’s. The solution therefore lies in restructuring public credit delivery system especially when the situation has been engendered by the absentee and migratory nature of the ‘bird’ called NABARD. In more than 25 years of its existence it has only been characterised though absenteeism. Today, in ways more than one, it can take the challenge back to the MFI’s.

The Grameen Banks on the other hand seems more interested in lending to qualified investors and entrepreneurs in order to cut down their risky portfolios and gross NPA’s. (Indeed, I was perturbed to find the Sagar Grameen Bank, which operates mainly in south Bengal advance loans to fund the JNNURM buses, many of them belonging to CSTC and SBSTC!!)

There is a theoretical and operative divide between a pan India corporate and PSU bank, and a Grameen Bank which needs to be maintained. The logic of their existence needs to demarcated and understood; while the former are inextricably tied to market forces operating in a capital market, the later is intended to cater to the non-monetised and unorganised rural sector.

The SHG initiative could be revived, however time consuming it might be. Once the SHG’s as a ‘culture’ (understood essentially as a verb) attains self sustainability, their monetary gains could be utilised to set up local Cooperative banks, which could in turn finance future SHG initiatives in the locality. The SHG model therefore offers extreme spin offs in terms of possibilities.

The operations of NABARD could be remodelled after the MFI’s while preserving its core financial and cultural ethics. The reach of NABARD could be extended manifold by recruiting NABARD rural agents, (much like our para LIC agents) who would have a commission on the loans advanced.

The 2010 census and recent UID initiatives could be exploited to ‘locate’ non-monetised and unorganised labour which in turn could be trained by schools modelled after Krishi Vijnan Kendra’s (which have been training agricultural labourers and farmers in their craft for more than 40 years.) and financed either through NABARD, or Grameen Banks, or cooperative lending systems.

Infact, the recent recession provided us with the unique opportunity to monetise the non-monetised sector of Indian economy. Since the problem originated with organised banking sector operating under the forces of global capital market, the government could well have taken the opportunity to fashion out a unique insulation by pumping money into the non-monetised locales.

Cognition and recognition of a missed opportunity provides us with possibility of finding just other opportunities which are manifold considering the diversity of our economic geography. Opportunities are, and will be manifold. Only, we need to work on them.

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Rajarshi Mitra thinks rhetoric without responsibility can only lead him to scholastic obscurantism, and therefore keeps open ways which can turn the skeptic in him into a believer. He is also at Pantopticon

Friday, October 29, 2010

A Flashing News

"Opinion governs the world, and in the end the philosophers govern men's opinion" - Voltaire


The French Revolution of 1789 was the outcome of numerous politico-socio-economic factors. However, "no revolution occurs in an intellectual vacuum". The ideological and literary impact of the "Men of Letters" like Rousseau, Montesquieu, Voltaire, Diderot etc was profound as they played a huge role in shaping the mindset of the general populace. Pamphlets, manuscripts, debates and discussions in the intellectual circles led to the development of a French society which was educated about the concepts of "Liberte, Egalite, Fraternite".

Then French society was divided into three estates - the Church, the nobility and the commoners. Each estate had a very distinct social role and a certain level of power. Acknowledging the increasing role of editors, writers, literary men and newspapers in the middle of the 19th century, people began referring to the "press" as the fourth estate. The coinage of the term is credited to Edmund Burke, who used it while discussing the French Revolution. However, Thomas Carlyle, a 19th century author, popularized it.

In the current societal set up, the fourth estate or the public press encompasses journalists, photographers, TV and radio broadcasters. We generally agree that the press has immense political and social power, as they shape societies while imparting news. For India, the press has played a very important role in its independence movement as well as in the period of Emergency. It continues to be acclaimed as the fourth important pillar after judiciary, parliament and the bureaucracy.

Misuse the news:

Because of the importance of journalism in society, most members of the fourth estate abide by certain professional ethics and are careful as a whole to protect the integrity of the press. But as we say, that "corruption" is the biggest challenge to our democracy and there is no sector which is free from the tentacles of this menace - not even the fourth estate.

Of late, after the 15th Lok Sabha elections, the phenomenon of "paid news" is being widely discussed. Simplistically speaking, "paid news" or "surrogate advertisements" is the practice of giving money to media companies by political parties for favourable coverage i.e. publishing any form of advertisements which masquerade as news. Much of this happens due to the unholy nexus between the media houses and political parties.

The system of "paid news" is seen by some critics as one of the greatest threats to media ethics and democracy in India. It goes beyond the corruption of individual journalists/media companies and has become highly organised. It is both sad and shocking, as this culture undermines the basic precepts of journalism which is expected to play a constructive role in the society. 

In practice:

During the course of elections last year, many politicians entered into a "package deal" with newspapers to print negative stories about rivals. Even two conflicting news items appeared on the same page because the paper would have reached an understanding both with a politician as well as his rival. Additionally, there were posts in competing newspapers which portrayed both rival candidates as winning - thus, clearly showing that how "sale-able" editorial space has become.

The size of the “paid news” market is estimated to be somewhere between Rs 300 crore and Rs 1,000 crore. Important thing is that, most of these operations are clandestine and are difficult to prove as they are not documented per se. Additionally, this process encourages the circulation of black money as this amount is not quoted in election expenditure - thus, raising legal and ethical questions.

In the process of maximising profits, the media companies attenuate the independence of press. Political parties too by colluding with them become equal partners in this pernicious practice. In the run-up to elections, candidates with less funding are left behind whereas the ones with strong financial backing indulge in means to promote positive publicity for self and negative coverage for their rivals - thus, openly flouting the process of elections and the spirit of democracy.

Voices:

Umpteen number of cases were reported last year where electoral candidates were found to have spent extravagant amounts, disproportionate to their allowable limits, on publicity. In fact, some of them even agreed that they willfully "paid" for "news" to counter the negative publicity manouvered by their opponents. This includes advertisements that were published as "news" even within 24 hours prior to elections - a clear violation of directives of the Election Commission and its model code of conduct.

Post Lok Sabha elections, several groups like Editors Guild of India, Indian Women's Press Corps, Andhra Pradesh Union of Working Journalists and South Asia Free Media Association [ India chapter ] etc have raised their voice against this syndrome. Some political parties and activists have also become strong votaries of amendments to the Representation of the People Act,1951 [ RPA ] to declare such news as an electoral malpractice.

Election Commission of India [ ECI ] views the practice of paid news as an attempt to bypass Sections 77 and 123 (6) of the RPA which prescribes accounting and ceiling of election expenses. To check the growth of paid news in print and electronic media, ECI has issued directives to state chief electoral officers [ CEO's ] to form a committee in each district so as to ensure a vigil during elections. The committee will scan newspapers and TV to come up with cases of inflated coverage, voters misguidance or unhealthy electoral operations.

Way forward:

A breakthrough in mitigation of "surrogate advertisements" can be achieved if RPA, 1951 is amended by Parliament to make the practice of paying for news coverage in newspapers and television channels an “electoral malpractice” or an act of corruption and made a punishable offence.

Steps can be taken to ensure the strict enforcement of section 127A of RPA which says that it is mandatory for the publisher of an election advertisement, pamphlet etc to print the name and address of the publisher as well as printer - failure attracts punishment or fine.

A ECI hotline can be set up which would welcome calls on instances of paid news. This should be followed by a firm and time bound action from the police and the judiciary. Directives of Press Council of India should also be religiously followed. These include compulsory disclosure of stakes of all candidates/political parties in newspapers/television channels on which their news is broadcast. Additionally, news can be clearly demarcated from advertisements by printing disclaimers or changing fonts.

The onus of holding free and fair elections in the country lies with the ECI. However, it has limitations due to which it can act with authority only during the elections. Election Commissioner S Y Quraishi has said that several political parties have told the Commission about paid news but no one has lodged a formal complaint. Let’s not forget that the ECI functions under the aegis of Article 324 of our constitution and is also bound by "laws of the land". It does have a major role to play in tackling this undemocratic and unethical practice but self-regulation by media, political parties and individual players is also required.

Final note:

Thomas Carlyle said that writing gives people “a tongue which others will listen to”.

When the audience is the whole society, the "tongue" has an additional responsibility of maintaining an air of neutrality so that the people can judge facts for themselves. When news becomes biased, we cease to be a "democratic" nation in the true sense.

Much harm has been done to the credibility of the fourth estate owing to such "biasness". Only when an affirmative and sincere action is initiated and continued, the process of reversal can begin.

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You have to poke Indira Mukherjee at indianpolicy2010@gmail.com to know if she admires Indira Gandhi

Poverty in India: Causes, Concerns and Solutions

This is Part-I of a three part series.
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The tag of  a “Third World Country” itself gives an impression that India and fellow countries are third rated and the first picture that comes to our mind imagining a third world country, is of poor people and rampant poverty all over.

The mention of   population living under $1 per day flashes image of hunger, malnutrition, food scarcity, shabby surroundings and inhuman conditions .There is nothing wrong in the picture as this very fact becomes the basis of International Aids and other charities to flow in the country.

Can you really develop and sustain it with funds of charity? Can you come out of abject poverty with outside funds? Is this what you really mean as progressive democracy? If even one of the answers to these questions is a blunt “Yes” then this is the proof of psychological defect and absence of vision not only with the government but with all of us.

Looking back on what probably made the emergence of Poverty in India:-

Indian economy, even in the middle ages, was a self-reliant, self sufficient village economy where agriculture was the major profession and land was not an asset or property. The 'king-subject' type of state was the order of the day, where security was provided by king in lieu of agricultural products.

Then the entry of the foreign ruler allowed new ideas, pattern to emerge. The farmers and villagers were the most affected as the burden of tax increased and the monarch lost his power to the British.

British adopted land rules prevalent in Britain to rule India. This made the land an asset and resulted in emergence of landlords--a new breed of tyrants. The farmers became bonded labor in the same field where they worked earlier. Large sections of population were affected by this process and it resulted in what can be termed as the early phase of poverty.

By the time India became independent the segment under poverty was large and to quote any British based figure i.e. 75 per cent of population would be a flaw as there was no strict definition of poverty then. Post independence with planning led development, Planning Commission emerged as the national body to look at plans and schemes.  After lot of discussion of “how to gauge poverty“ - it was accepted to define Calorie Intake as criteria of defining poverty or Poverty Line.

Impact of poverty can be felt in the very aspect of human inhabitation and human existence. Now when world over India was termed as Population Bomb, where poorest of poor reside, we still followed western pattern of approach in solving social issues like poverty. The political colonialism might have gone with the emergence of India as a republic. But the colonialism of thoughts still exists, ideas of schemes were based on works of foreign economists and which had to fail ultimately and this burden of failure has become so large today that there exists a visible gap between the rich and the poor.

The ideas of economists took the shape of schemes. In 1970s “Garibi hatao” (Eliminate poverty), which was later as claimed by the opposition as “Garib ko Hatao” (Eliminate the Poor) programs emerged in the scenario. The statistical exercise of Below Poverty Line (BPL) and Above Poverty Line (APL) was on every body’s lips without understanding its meaning and consequences ahead. It remains a challenge till today. We are still to find solution to poverty.

Let's assume the whole approach of fighting poverty is flawed. Let’s prove it:-
  • Calories are the basis of determining poverty but how are they calculated is not clear, as every one is not able to buy and eat, mostly people live on from their own produce from agricultural field. The persons going through restrictive diets or religious fasting also has total calorie intake less than defined so does that make them BPL for those days.  Thus there is no strict way. 
  • Schemes addressing poverty are not Demand based, rather depended on selection and implementation. i.e. government chooses people and decides them to be BPL and provides them fund to rise above BPL.
  • “Instant”   pattern of addressing an issue rather than step wise progressive approach. The programs are target oriented assuming that there is a poverty group roaming like tiger and with some big schemes like SJGSRY, JRY, one has to hit them and Bang!!! The target is hit and objective accomplished.
  • BPL acts more like Line Of Control (LOC) only pillar to pillar and no line actually. So most vaguely determined BPL decides the beneficiary of schemes. This approach assumes the person only eats and survives, has no other needs like, any cloth, family, education, engagement in any other activity, entertainment? Only consumes and lives.
  • All over the country geography is same and population are clones and there is this prestigious Calorie based Poverty line which demarcates one’s status in the eyes of Government as beneficiary eligible to benefit from schemes.
Well while the government was busy in deciding how to define poverty another new aspect emerged that was urban poverty, Now Poverty monster has 2 heads Urban and Rural. All the previous schemes also divided themselves in Rural & Urban.

As if following the biological principle of cell division, “Cell divides and reproduces cell”, poverty has been dividing itself to produce new kind of poverty. So it is very clear that even before government acts to address the problem a new one emerges, but in the name of implementation, government agency works on failed schemes. Thus the failure magnifies itself in this top – down approach which leads to more poverty.

All these are reasons enough to prove that the basis of fighting poverty is one of the most important cause of failure.

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Abhilash Mohapatra not only thinks about India, but he is damn serious to contribute fruitfully in future.

Monday, October 25, 2010

India's Mining Sector: Sustainable?

Mining as a profession has been a part of the economy since Harrapan civilization. In the changing economic scenario where revival of primary industrial sector is in tune with the theme of sustainable development and environmental protection, mining sector cannot be left behind.

India produces as many as 86 minerals, which include 4 fuels, 10 metallic, and 46 non-metallic, 3 atomic and 23 minor minerals. The Ministry of Mines is responsible for all except atomic mineral, fuels and coal.

The resurgence of the sector can be attributed to higher demands in national and international market especially from rising economies of east and south-east Asia in the early 1990’s.
The high demand led to scrambled, dig-sell mining practices in India which resulted in appearance of illegal mines over-night all under the nose of government of the day. The 'first come first serve' policy of leasing mines remained the major way of contracting out mines to private ownerships by the ministry. The lack of transparency in the process thus led to rise of mining mafia and other unscrupulous new entrants in the sector with political support.
Although late but government realized that the sector is the golden goose and there is an urgent need to regulate and organize the sector.

The Mines and Minerals (Development and Regulation) Act, 1957 (MMDRA), was majorly insufficient to realize the vision of economic growth as mines in poverty stricken regions showed no sign of development. The present status remains more or less the same or even worse as labor rights and regulation are absent. More over as a result, a system of bonded labor has cropped up and the poor miners; mostly local tribal people are unaware and even helpless to voice their concern.

Looking at the major roadblocks which need reforms are:-
Firstly, mining as an occupation is done in the most inhuman way where the miners risk there lives for a meager sum of money whereas the minerals worth is much beyond imagination.
Secondly, the mining activity is directly proportional to demand and thus non-scientific practices and ill-mannered mining and absence of training to miners are an issue at large.
The recent rescue operation of 33 miners in Chile has bought the world's attention towards these unsung heroes .The national responsibility for these risk taking occupation are the next major issue in mining policy world over.
Thirdly, Land ownership and mass migration becomes a major concern in addressing rehabilitation issues.
Fourthly, the FDI entrants like MNCs find it very difficult to operate leading to uncooperative attitude of locals, governments, media etc. The recent global showdown against Vedanta’s Niyamgiri Hills in Orissa which are opposed by tribal inhabitants for community principles can be a set back for MNCs interested to enter in the sector.
Fifthly, today when environment is major concern there is conflict of miners and environment regulation where due to environmental concern or emerging 'green tape-ism',  activities are shut down leading to unemployment of miners and loss of investors.
Sixthly, mining activity are scientifically done world over and use of advance geological instrumentation in the process has resulted increased production in a sustainable way. Such practices are yet to be implemented on field in India.
Finally, corruption is a cancer which infects all organizations. It leads to non-transparency, delay and vindictive attitudes of the official, which is primarily responsible for non-acceptance of reforms in practice.
At the policy front government has time and again proved its meticulous ability to lay a framework projecting a simple strategy.

The New Mineral Policy 2008 and Sustainable Development Framework 2010 enunciates measures like assured right to next stage mineral concession, transferability of mineral concessions and transparency in allotment of concessions, in order to reduce delays which are seen as impediments to investment and technology flows in the mining sector in India.

But the problem lies in the implementation of the policies.

Some innovative approaches which can be considered for real reforms in mining sector are:

Firstly, inclusion of local governance system with sufficient powers to work with PSUs or MNCs.

Secondly, when the conflict is of environment/ biodiversity Vs Ores the priority should be for environment as to maintain the natural balance. The ores can be left for future use if ever required but as in India major ores are mostly in biodiversity zone; identification of area, mapping through satellite and inclusion of advance geological instrumentations, such practices can help to chalk out action plan for identifying major mining zone and their transport routes.

Thirdly, PSUs and MNCs acquiring mines for projects should act under Corporate Social Responsibility with government support to provide full benefit to locals and affected population in the way to compensate for their loss. Health, education, training and employment issues can be addressed in better way by them.

Fourthly, Instead of selling out mines, renting out approach to address ownership issues of the Persons Affected by Projects (PAPs) adopted so as to ensure at least regular sum of money in case they are either unwilling to be employed or where compensations cannot address their future.

Finally, Government and other regulatory bodies should periodically assess the progress to provide timely assistance if any in policy reforms or action thereafter so as to organize and follow a strict local approach to address this global industry. A tribunal or judicial arrangement can also be framed for exclusive issues pertaining to this and related sectors. Thus a resurgent sector can fruitfully implement a progressive change in India.

The opinions expressed are purely observational and author’s analysis of the issue.
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Abhilash Mohapatra not only thinks about India, but he is damn serious to contribute fruitfully in future.

Friday, October 22, 2010

CWG: Stories of Glitterati and Postmodern Fallacies

Reading Orhan Pamuk’s The Black Book over the last weekend through my occasional travails (incidentally caused by my inability to come to conclusions!!) gave me a rather serious insight. The insight however happens to be as magical as can be by any stretch of imagination. Languishing painfully and restlessly in my sofa, as Kolkata began to enjoy one in the series of coming marathon loadshedding sessions, I realised that the Commonwealth Games (CWG) was indeed the best of postmodern fictions!
It has been argued over and over again, that the postmodern narrative takes the structure of a detective fiction/story...the motive being to demonstrate the inability to arrive at a conducive, and contributive narrative that solves the jigsaw.

Postmodernism’s desire to contest the “given” nature of truth(s) results in multiplicity of narratives with their peculiar ludic energy.

Simplistically speaking, postmodernism acknowledges and promotes multiplicity and contests realism which lays a claim of monopoly over truth.

Truths, like narratives, are therefore many. But this very nobility and liberality erodes the praxis of postmodernism.

However, coming back to a more concrete CWG (more famously known until recently for falling apart...much like a PoMo narrative!)....did this untimely and undue theorising help at all?
This narrative may betray a tendency to degenerate into a fantastical magical realism, but it needs to be resurrected, if only for the sake of the realism of the present article!
India has very recently concluded the 19th Commonwealth Games, handing over the CWG baton to her more ideally situated partner in Commonwealth. As India takes rest after the pyrrhic victory, readily accepting accolades much like a happy bride on her wedding day, and as Mr. Mani Shankar Aiyer celebrates his belated unease over the bill of CWG, the people of this country must and will ponder on the ominousness of these recent events.
Momentarily let’s cut back to the point in Mr. Mani Shankar Aiyer’s point. A farmer in Vidarbha will never realise the political economies of a Rs. 40 crore balloon, but he will for sure feel its consequences in an ever shrinking farm subsidy, ever absent healthcare sevices, and perhaps one day the nation will romanticise his suicide in sagas of projection in a 80 crore balloon in some other games.

As people (who are not incidentally well versed in the jargon of mmcft’s and GSMA, GSPA) readily deliberated and debated on the price of a kilo of helium, or for that matter what could be the chemical composition of the slippery liquid contained in the exquisitely crafted underbelly of a Rs. 9379 soap dispenser; I wondered the logic of paying a price of Rs. 1 crore to A.R.Rahman for his quite priceless theme song.
What did we gain from the costliest CWG ever? More importantly, what did we purposely want to gain from it...a permanent seat in the UNSC?

Some of my university friends in Delhi, haply placed in highly reputed English news channels, right now slogging through their makeup sessions...would love to believe so. They went live comparing Beijing and Delhi in a bizarre logic of political economy.

Nonetheless CWG gave us prestige, and some occasional back patting from one certain Mr. Fennell. Delhiites would justify and draw satisfaction from a cleaner, sexier Delhi sans the din of Bluelines...but not all. Ministry of Tourism and ITDC projected a seventy thousand plus foreign tourist arrivals; recent fact could only testify about 8000 foreigners arriving for the CWG. Understandably, a lot many people lost money believing in the premature hubris of faulty estimations. Nonetheless, the CGW has been a gift to the nation.

The dialogic of capitalism interprets a gift as an investment. By that measure CWG has been a failure of monumentous proportions.

Period.
Let us cut back to the realism of the present scenario. We cannot wish away the reality of CGW. It is, and has been an event, and we cannot undo the fact that it has happened...with all its successes and failures. Everyone outside the government, and a certain Ms Sheila Dixit within the government believe(s) that there has been gross mishandling of funds. Mr. Kalmadi has been rendered “bratya” (I feel at a loss to find an English equivalent!!) in the recent glitterati parties of UPA chairperson and Prime Minister. On a more serious note, (apparently) Enforcement Directorate (E.D.) registered a case against a few O.C. (for the uninitiated.....Organising Committee) officials for alleged foreign exchange violations under the FEMA.
Meantime, interesting facts have been unearthed. Real estate developer consortium EMAAR MGF (mother company EMAAR being a Dubai based MNC) was provided with a bailout package worth Rs. 700 crore during the recession to help complete the games village. One fails to comprehend the meticulous economic logic of bailing out foreign JV’s when the national economy is reeling with current account deficits.
But what really provoked my postmodern promenade in the midst of a bad blackout was the decisions of the govt. to allow the O.C. continue in office until further notice, and to allow the E.D. to continue its investigations. A history of incomplete investigations, cubbyhole politics and delayed verdicts testify how difficult it is to charge-sheet an incumbent. It is a negation of the savvy judicial term “suspension pending investigation”. The CWG saga is a postmodern narrative per se, a narrative that lost its way, or perhaps, a narrative that nobody wants to know or let know!

Play on!

P.S. My belated interest in Pamuk is most certainly not inspired by certain more illustrious individuals of West Bengal, and being non partisan (at least in public) I’m not clad in their luminous opacity!    
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Rajarshi Mitra takes cursory interest in the genaral human condition. He generally means no harm, and when he is not busy taking potshots, he generally takes shots. Find the recent ones at http://ilpanopticon.blogspot.com/

Random Walk: Akbar and Ayodhya

“Faith (Imam) and Infidelity (Kufr), both are galloping on the way towards Him,
And are exclaiming (together): He is One and none shares His kingship.”

Darbar-i-Akbari by Muhammad Husain Azad (p. 492) tells us that Abul Fadl had this verse inscribed on a building which the eclectic emperor Akbar had built for the common use of the Hindoos and Mussalmans.

Dear All,

Yes, I am sure you are not complaining that I was away for a few days. In fact, you must have enjoyed the break. Nevertheless, I have returned. Not with another story though. And neither would I like to converse with you at length. Today I would prefer to have a monologue. Yes, this is necessary. You need to listen, then need to think and later on if time permits, act.

So, let me start.

There were a plethora of articles, essays and reportage with regard to the Ayodhya verdict. In fact, there was no dearth of publications, both national as well as ‘international’ which did not uphold the issue. Undoubtedly, the matter was of profound significance and could have had a serious politico-security impact on the Indian state.

Nevertheless, it seems that two decades must have taken away a lot of steam and momentum from it. A globalised, post 9/11 India, especially its youth may not be that much interested in the debate of Mandir-Masjid. They are rather more engrossed in the aspects of career.

Still, even in this subdued political atmosphere of 2010, on the day of the verdict, the streets exhibited a deserted look; shutters of most of the shops were down and majority of the vehicles were unmoved. That too in Kolkata: the city which boasts of being the epicenter of communal harmony; at least for the last three decades of Marxist governance.

Interestingly, this same city was full of gaiety and fanfare when at around 40 km away from its international airport; a group of people were languishing in their own prison-like habitats. The reason: communal disharmony. Or one should aptly refer to it as ‘ruffian-like hooliganism’ inflicted on a section of the populace; which went visibly unnoticed by their brethren, not to be interpreted only in terms of religion; but surely to be viewed in terms of responsibility of a civilized nation-state where the administrative machinery still does declaim to exist.

Has the time come to deconstruct the political apparatus of this six decade old democracy? Conservatives may not subscribe to such a radical viewpoint. Even if not, then even the hardliner probably would agree that a serious re-thinking in that direction is necessary. At least one particular parameter needs to be looked into, analysed thoroughly and the hypocritical moorings pruned off, sooner; the better.

As an Indian citizen, we feel proud to vociferously proclaim the secularist strand that echoes through the labyrinth of our voluminous constitution; sometimes explicitly in the form of Fundamental Rights and at times, even implicitly. And we decry counter-arguments manifested in the vitriolic attacks launched on us both from within as well as from without as far as secularism is concerned. We also boast of an impartial judicial system which takes care, through writs, of any infringement on our Fundamental Rights.

And last but not the least; we flex our intellectual muscles when we talk about our independent media and civil society: which do not merely act as the fourth pillar of democracy by extending Montesquieu’s categorical definition of the term; but definitely act as an important platform to showcase independent thought in an independent India.

But where were the media, the civil society, the politicos, the administration and the common man when a section of hapless Hindoos (I am helplessly using this term) were being traumatized in a secular land?

They were not being subjected to torture, pillage and rapine in an Islamist state which is governed by the Shariat: that could have still provided a raison d’etre to the overt acts of those ruffians. Rather they were being ‘mentally demolished’ in a land which grants ‘freedom of religion’ to every citizen.

And what was the dispute all about? Well, about a piece of land. Yes, again a piece of land. As Dr Tharoor points out in his book “INDIA: From Midnight to the Millennium and Beyond”, that there exists a ‘hackneyed phrase that there are several Indias in one India’; this particular event corroborates the cliché once again.

However, Dr Tharoor may not appreciate this ‘India’ that I am discussing.

He, like many liberal thinkers, who may or may not have been mentally and intellectually persecuted by a group of over-enthusiastic right-wingers; have quite unnecessarily shielded themselves from a reality which now sometimes haunts us in our wildest dreams, but would probably graduate toward ominous proportions if not taken due care.

The reality that is being put forth here is not unknown to any of the Indians, and not in any way alien to the liberal writers, thinkers and politicos of all shades and colours. The reality just does not pertain to pseudo-secularism, since the word betrays semantics, but rather of ‘deprivation’, of ‘beguiling a large section of the populace’, of ‘emasculating a group’ and of ‘dismantling the very structure for which our forefathers gave up their lives’.

Coming back to the incident, on September 07 2010, a group of hooligans, allegedly under the tutelage of Haji Nurul Islam, a Member of Parliament (MP) from the Bashirhat constituency, vandalized the Kali Mandir in the Deganga intermediate Panchayat area: a place which is close to a busy hub of the capital of West Bengal.

Why did the goons do this? Actually, they wanted to extend the graveyard and naturally got engaged in a conflict with the other community who perform Durga Puja for years in a nearby compound. As an altercation ensued, the huns under the auspices of the local MP wielded their authority and the police were to act as bystanders, as has always been the case in West Bengal for the last three decades.

However, it seems that apocalypse is looming large on the horizons of the province because this time around, the MP belonged to Trinamool Congress, the party which is believed to bring succour to the people of the province after the thirty-year long maladministration and malnourishment of the Left.

Now, this really turns out to be dangerous. Who would the beleaguered people now confide in? The Left has been termed as pseudo-secularists and now the centrists seem to be a close second in that regard. The far right has been distinctly disowned by the people themselves. In fact, they are no less than a pariah in West Bengal.

A seasoned political analyst would comment as follows: “As we live in ghettos in India, based on language, religion, caste etc., our politics is also moulded accordingly. Hence, the majority has nothing to fear, even if they are a minority on a national or provincial scale. What would actually matter is the population density of a particular group in a constituency.”

I would like to yell and ask that analyst: “Should we not again go back to the Morley-Minto Reforms of 1909 and give to ourselves the separate electorates? Should we not undo the reforms of the Father of the Nation? And should we not reverse the irreversible tract of historical formation of India?”

And if we are impotent enough to do either of the aforementioned, then please let us not always be confounded, bemused and manhandled by a ludicrous set of political generalissimos. And let us all break the yoke of a biased liberal thought-process which quite ‘illiberally’ terms any antagonistic literature as reactionary, conservative, communal and 'biased'.

The desecration of the Kali Mandir at Deganga is an irreversible process, no doubt. The Hindoos reacted in the Satyagraha-esque manner by not performing the Durga Puja this year. Even then, the reluctance of mainstream media to cover the entire event in an unbiased manner evokes stupefaction.

No sane character would, however, contemplate an equally uncivil attack on the ‘other’ community since in the lexicon of the sane; the word ‘other’ ought not to exist. But the single most important thing at this juncture is to bring the perpetrators to book; whosoever they are.

If the rule of law is to exist in independent India, if pluralism is to thrive, then the guilty needs to be sent to the hoosegow. If the people of India in general and West Bengal in particular are still to have faith in the constitutional process, then the culpable has to be incarcerated. The travails and tribulations of the ‘minority’ in Deganga must end.

As a disclaimer, I am not preaching any dogma, nor proliferating any parochial mindset; but essentially labouring for an enlightenment of both the masses and intellectuals alike so as to not perpetuate a ‘false sense of secularism’ which has been held hostage to political hooliganism and a systemic criminalization of the Indian political apparatus.

The light may be at the end of the tunnel, if not for India as a whole but may be for the minorities at Deganga. The National Human Rights Commission (NHRC) asked the West Bengal government to file a report on the violence that took place on September 7, within a month. But again, reports and commissions for most of the times, among other things, foster delinquency.

For Deganga to become West Bengal’s Ayodhya, there needs to be a complete revitalization of ‘consciousness’ of the masses of the province, which seems unlikely in the foreseeable future unless propelled by some externalities. Nevertheless, an ‘Ayodhya-isation’ of the issue is evidently not desirable. But if the interests of the ‘minorities’ are not safeguarded in a ghettoized India and especially in West Bengal, then fanning sentiments of gullible denizens would be easy.

What the people basically need is the rectitude of the government, whichever composition it might be. And no one desires a Godhra or Ayodhya or for that matter a Deganga.

What Akbar could do in the medieval era surely can be replicated in the post-colonial.
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Uddipan Mukherjee is a late riser. Still, he works 'very hard' to edit Indian Policy. By the way, he writes in diplostratics

Monday, October 18, 2010

Random Walk: Mumbai and Kolkata

Dear All,

Recently, I was reading Rushdie’s ’s Children. I always have a penchant to go through the preface or introduction of any book, be it purely academic or a novel. While I did that for the Booker of Bookers, I came to know that Rushdie used to write it after coming back from his part-time job. He used to take a bath, freshen up and then write.

I fully understand now why he did that. In fact, I have started emulating him. And I find it quite comforting. I also do some ‘pranayam’ (no Baba-effect) before I start pressing the keys of my laptop.

While I am sure that you are extremely engrossed in Dussehra festivities and those who are not into it, are again back to work after a leisurely vacation. That does not, however, make me sit idle and not poke you. In fact, you very well know that I am a worthless person and poking is, not my favourite pastime, but my only job.

Today, I shall tell you the stories of two persons. Yes, two persons who are quite different. They are not related in any way to each other. Neither by language. Nor by caste. Nor by any other parameter. Nonetheless, they are related, very well connected. You will soon discover how and why.

A caveat right at the beginning.

If you are led to believe that since nowadays I take a bath before writing; hence it would enable me to narrate like Rushdie, then I shall be the first person to ask you to leave the theatre. Please. I will tell the stories in the sole manner in which I tell stories.

Well, the first story.

I have mainly two email accounts. Why mainly, I have only two operational email accounts. One at gmail and the other at yahoo. I prefer the gmail account for most of my professional stuff and the yahoo account, for, well, my professional stuff. That is, I use both the accounts almost in an equivalent manner. There are advantages as well as disadvantages of both the accounts.

Okay, bhai, I understand that I am digressing too far. Fine. Let me come back to the point.

While I was logging into my yahoo account, I came across a headline. You might say, "So what? There are headlines in the Yahoo Home page always. And the news articles are informative."

Informative forsooth. I came across the news that our dearest Mr Mukesh Ambani, along with his wife Nita Ambani, three children and a 'modest' 600-person staff would move to a new house. Now, I understand why Nita Ambani always appears to be on cloud nine. The 'Bhajji embrace' is definitely not the reason.

On this Sunday morning, in The Asian Age, I saw the fashionista, vivacious Nita addressing an august audience at the London School of Economics. The Ambanis (err, only Mukesh and Nita) are planning to collaborate with LSE to open branches in India! Wow, what a news.

At least, now, the coming generations of my fellow countrymen would be spared the anachronistic system of education that we had to gulp down our alimentary canal. And now they would be enlightened, not as a Budhha, but as a John Keynes. And they would be respected by the Occident. And they would receive more and more Nobels. And…….

Let me vomit some facts very fast. Mukesh's new house (err, Mansion) is of 27 storeys. Its name is Antilla. It cost him one billion US dollars. And one US dollar is equal to, how many? Okay, not sure; may be forty five rupees to be on the safe side. The sale price of the mansion is two billion US dollars. Our honourable Prime Minister Dr Manmohan Singh has been invited to Mukesh's mansion.

Please allow me to take my breath. Just wait. Indeed breathtaking. What?

Aare baba, the sight of the mansion. No, no. I have not seen it. Just saw the picture. Where and how? Aare baba, in the internet. The picture presents an architectural wonder. It has a rectangular facade. As if one match-box has been placed over the other and that in turn over another and …...

The picture reminded me of school days when I could never solve the problems on static equilibrium.

Downtown Kolkata. The city of joy(?) and dilapidated palaces. Our cherry-coloured Maruti Suzuki Zen was easing its way through the unusually low dense traffic, and on the unexpectedly proper tarmac-road. I glanced at my right. I could see a lean young man, with bulging eyeballs, confirmed to be in his twenties, was intensely focused and had a wonderful hand-eye co-ordination; a coordination which might fetch him a maximum of 300 Indian rupees per day whereas on the other hand, a similar coordination can fetch our Mahendra Singh Dhoni few lakhs per day or may be more!

As I said at the outset, my job is to poke. So, I did. And 'thus spake me'.

"May I know your name?"

A long pause. He was busy in maneuvering the car. Did he listen to my question? I reiterated.

"Lakkhan." Was the stern reply in a Bengali-cised pronunciation, which had a veiled Bihari undertone. It was not at all sonorous and his tone adumbrated the fact that he was not interested in talking to me any further.

He was engineering my vehicle as you know I am a worthless person. I don't know how to drive. So, he was doing a favour. And I am sure that he expected a standard emolument of 150 Indian Bapu notes in return. A perfect professional.

But I was not to be let down.

"Lakkhan-babu, where do you stay?"

"In the garage". This time he gave a prompt answer.

"Would you like to get down here?" he asked, once we reached Muhammad Ali Park.

"No, let’s move on. I am not quite comfortable in entering Puja pandals."

The car cruised along Central Avenue and reached the boulevard of Kolkata: Esplanade. I insisted that we move toward New Market. I planned to buy some chocolates and dry fruits and bakery-made biscuits. (I remember with shame how my aunt reprimanded me because as a kid, I used to pronounce it as 'bis-koot' and not 'bis-kit'. At home, I still prefer the earlier pronunciation.)

"Where is your actual home? I mean your native place?"

"Belpahari, near Jhargram."

Suddenly, I could feel my heart beating faster. I must know more. I have to.

Why? Well, I guess your memory is not so weak. Though, you consume all sorts of memory-boosters to retain it. Nevertheless, let me remind you. I am studying the Maoist movement in India. And Belpahari has recently become a Maoist bastion. Even their flamboyant leader Kishenji could be hiding in that area.

And this guy is just from that place. It is very difficult these days to have visitations to Jangal-Mahal area which has been labeled as 'Maoist-infested'. The security forces not only gun down suspected Maoist guerillas but also love to incarcerate civilians and researchers who might loiter around that area for field work and data collection. A proper permission from the Superintendent of Police is required. He or she is, on most occasions, if not necessarily always, bloated with an authoritarian ego of the position conferred by the highest executive of the Indian Constitution as well as conceited in a false academic vanity of qualifying one of the so-called toughest competitive examinations in the sub-continent.

But I should not curse my fate at all. I got a chance to pay a visit, at least to the Jhargram town, the urban epicentre of the tension. I did not turn it down. Rather, I was torn apart between the capitalist-bourgeoisie service sector and my passion. The former won the day. I must again state that I am a worthless person.

"Well, as far as I know, the Maoists are active in that region, right?" I felt that it was a probing question.

It appeared to me that Lakkhan was a bit hesitant in answering it. Was he suspecting me? Was he a Maoist? Was he staying here in Kolkata to expand their urban base?

I needed the information, very badly. Hence, I had to win his confidence.

"Yes, they are." came his reply after a few seconds. By then, we had reached New Market. However (I am in love with this word), to our utter disappointment, the shutters were down. May be because it was Sunday.

"Where are we to go from here?" asked Lakkhan.

"Hmm, well, let's drive back."

And he was swiftly into the business. I also viewed a gentle smile on his face. As if he was happy to go back and probably happier that the conversation would end.

Time was running out for me. I had to extract the information from him.

"So, why the Maoists have been successful at Belpahari". I framed a rather direct question.

Lakkhan, by then, must have understood that I was not a police informer, let alone being a cop (though my dream was to become a 'top cop'). My innocuous, chubby face must have assured and reassured his self. He confided in me.

Furthermore, I told him that I had a plan to visit Jhargram town for some academic work. And I was feeling sorry for not being able to visit the region. Since academicians are mostly harmless and bovine-like, that must have given Lakkhan an additional cause to have faith in me.

"Dada, ki bolbo, party-r lokera amader jibon otishto kore tulechhilo", (The party musclemen [read the Marxists] had turned our lives into hell)

"tai Mao-badi-ra jaega dokhol korlo, ei aar ki." (that is why, the Maoists could gain foothold in the area)

I will not prolong my story any further. I spoke to Lakkhan for another fifteen minutes. I gathered some (hopefully credible) information regarding that area which would possibly help me pen down another essay or a paper for my next scholastic venture. However (I am really in love with this word now), the point of discussion is not that.

Do I still need to tell you the connection between Mukesh and Lakkhan? If yes, then I am on a rudderless boat in a sea of stupidity.

Mukesh lives in a 27-storey building. Lakkhan sleeps in the corner of a eighty square feet garage. Mukesh’s story appears as front page news. Lakkhan is unknown to the scribe.

If tomorrow, may be day after tomorrow; Lakkhan, along with scores of his compatriots, not only from Belpahari, but also from Bastar, Gadchiroli, Kalahandi, Nayagarh and hundreds of other 'below poverty line' districts of our 8 per cent-ly growing India, converge on the 27-storeyed mansion; then what would Mr Mukesh Ambani do?

May be Dr Singh's top cops; bolstered by their shapely buttocks and a protruding epigastrium will definitely save Mr Ambani; at all costs. Red blood would splash on the streets of Mumbai, in considerable volumes and desecrate the holy city of Mahadev Govind Ranade.

And after the mayhem, the government of the land of the Buddha and Gandhi, and yes Ashoka-- the Great, would proclaim that it can only happen in India: "One man, one vote". No discrimination.

Disclaimer: This is a non-partisan piece. I am not a member of any political party. I want to put an end to the malicious campaign against me.

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Uddipan Mukherjee is a late riser. Still, he works 'very hard' to edit Indian Policy. By the way, he writes in diplostratics