The demigod status accorded to Bollywood stars, Cricketers and popular politicians seems to reflect a mindset shaped by centuries of colonization of India. We firmly believe in 'Hero Worship' and 'VIP Status'. Many value their own status and standing by their perceived closeness to these so called VIPs and Stars.
No wonder then that these VIPs expect to be treated like Gods and see no reason to follow the rules or abide by the laws of this nation. Unfortunately, to their dismay, most other countries follow the simple philosophy of - "laws are same for all".
So when SRK got the treatment of a commoner in the hands of US Immigration officials, all his friends and followers were up in arms.
One of our overenthusiastic minister even proposed a tit-for-tat strategy for visiting Americans. Our national dailies and TRP hungry News Channels ran it as the headline story for days altogether.
Lets look at the facts -
Thousands of Indians visit US every day and millions live in the US. Given the US paranoia post 9/11, many would have had similar experiences, but neither the Indian government nor the media bothered to make it an issue. But all the hell broke loose when the "Global Icon" (we may have redefine Global)was queried at Newark Airport for over an hour.
May be it is the US paranoia and strict vigil, with no VIP exceptions, which has spared US any terror attacks post 9/11.
In our VIP infested nation, which provides no-security-frisking privileges not only to the VIPs but to even their relatives, terrorists strike at will. We only pray and hope, as we can not rely on the abilities of our government and security agencies to tackle the terror.
I completely sympathize with SRK when he says that he was irritated and angry for being made to wait but the accusation of racial & religious profiling and resulting media hoopla was completely unwarranted, given the fact that even senior US lawmakers like Edward Kennedy and former Vice President Al Gore have had the similar experiences. It goes to prove that US does not believe in VIP culture, when it comes to national security. So why such hue & cry?
This shows our immaturity as a nation which can not get over our fixation with VIPs and STARs.
SRK would have done a great service to himself and the nation by reporting this incident to the media and also telling them as to how gracefully he cooperated with the US authorities who were doing their job of securing their nation. This could have sent a positive message and might have done some good to change the attitudes of our VIPs and Stars. However, by crying foul, he not only has made himself look small but also has lost an opportunity to become a Real Hero ....
I hope that our VIPs learn some lessons from our beloved former President Dr. Kalam, who despite being frisked in his own country by an US Airline staff, as per US Aviation Authority rules which are certainly against Indian Laws, just laughed away and let the matter be handled by concerned authorities.
Well SRK is no APJ...
RK
,
Tuesday, August 18, 2009
Friday, July 3, 2009
BJP needs to put it's house in order & do it fast!
Though these are still early days but UPA (which essentially means Congress) is seemingly doing better on policy and governance front than most expected, after securing better than expected electoral mandate in May elections.
There seem to be a resolve on part of the Congress to convert this still uncertain and short of majority electoral mandate to a secure majority in 2014 by delivering on good governance and inclusive growth & development agenda. This is a well thought out plan leading to a winning electoral strategy as it appeals to both educated urban middle class (good governance & reforms) as well as rural masses (social welfare and inclusive growth).
UPA (Congress) has been very systematic and consistent about this agenda and have made their intentions known, first by way of Presidential Address and yesterday through Economic Survey report. A follow-up of this strategy and developmental agenda by way of budget provisions is expected on 6th.
I, as a citizen, am happy about it as no one can fault and argue with this approach as this is the best possible development model for India, provided they deliver on their intentions and promises given that delivery systems are in shambles and leaky.
Now coming to the political ramifications of success of this agenda. Some of my friends in Congress are so confident of their strategy (a BJP in disarray is a bonus) that they have been talking about return of pre-1977 days when Congress ruled for decades without a break.
Tome met this does not sound too good given that Congress did not do a good job of economic and social development during first 3 decades post independence. The reason for this poor performance could lie in the absence of a credible opposition and fear of loosing an election.
A credible opposition is as important as a good government to ensure that enough checks and balances are there. We all are witness to a lackluster performance of Rajiv Gandhi government despite having 3/4th majority.
Current state of affairs in BJP, though disheartening, is not unexpected. Every defeat results in heart-burns and finger pointing but this needs to come an end soon. A strong and united BJP will provided much needed checks & balances and should play the role of a constructive opposition to build it's credibility among Indian electorate if they expect to have a fighting chance of coming back to power ever again.
A Right-of-Center political formulation led by BJP will be in the best interest of the country and for the Congress too, as Congress would prefer to deal with the predictable opposition (BJP), rather than deal with the mercurial left led by unelectable comrades and regional satraps who are completely oblivious of economic and social developmental challenges facing the nation.
Let's all wish us luck and hope that BJP puts its house in order and does it fast!!
RK
There seem to be a resolve on part of the Congress to convert this still uncertain and short of majority electoral mandate to a secure majority in 2014 by delivering on good governance and inclusive growth & development agenda. This is a well thought out plan leading to a winning electoral strategy as it appeals to both educated urban middle class (good governance & reforms) as well as rural masses (social welfare and inclusive growth).
UPA (Congress) has been very systematic and consistent about this agenda and have made their intentions known, first by way of Presidential Address and yesterday through Economic Survey report. A follow-up of this strategy and developmental agenda by way of budget provisions is expected on 6th.
I, as a citizen, am happy about it as no one can fault and argue with this approach as this is the best possible development model for India, provided they deliver on their intentions and promises given that delivery systems are in shambles and leaky.
Now coming to the political ramifications of success of this agenda. Some of my friends in Congress are so confident of their strategy (a BJP in disarray is a bonus) that they have been talking about return of pre-1977 days when Congress ruled for decades without a break.
Tome met this does not sound too good given that Congress did not do a good job of economic and social development during first 3 decades post independence. The reason for this poor performance could lie in the absence of a credible opposition and fear of loosing an election.
A credible opposition is as important as a good government to ensure that enough checks and balances are there. We all are witness to a lackluster performance of Rajiv Gandhi government despite having 3/4th majority.
Current state of affairs in BJP, though disheartening, is not unexpected. Every defeat results in heart-burns and finger pointing but this needs to come an end soon. A strong and united BJP will provided much needed checks & balances and should play the role of a constructive opposition to build it's credibility among Indian electorate if they expect to have a fighting chance of coming back to power ever again.
A Right-of-Center political formulation led by BJP will be in the best interest of the country and for the Congress too, as Congress would prefer to deal with the predictable opposition (BJP), rather than deal with the mercurial left led by unelectable comrades and regional satraps who are completely oblivious of economic and social developmental challenges facing the nation.
Let's all wish us luck and hope that BJP puts its house in order and does it fast!!
RK
Sunday, May 31, 2009
Congress must not waste this mandate!
I was happy to see the possibility of a stable government which is essential to provide a clear direction to our country in these times of economic uncertainty. Though my party has taken a beating in this election, but I was happy nonetheless and hoped that Congress will use this mandate to push forward the economic and inclusive development agenda, given that they will not have worry about the left and opportunistic allies.
However, the drama which unfolded prior to and during government formation is worrying me. DMK washed their dirty family linen in public and shamelessly jockeyed for ministerial births for family members. They also made brazen attempts to include inefficient ministers who had serious corruption allegations against them. Balu and Raja were amongst the worst performing ministers in the previous government. National Highway program was brought to a halt under inefficient Balu and Raja gave away GSM spectrum causing huge revenue loss to the exchequer.
I had hoped that Mr. Manmohan Singh will not relent to pressure tactics of DMK and will keep such non-performers out of the cabinet, but that wasn't to be. Raja is back with a bang in the same ministry. We all can only hope that PM will make him perform this time around.
Another disturbing aspect of this cabinet is it's dynastic nature. One in every 4 minister comes from a political family and has been accommodated to placate the father, uncle or mother. Nothing wrong in having capable MPs as ministers who happen to come from political families, but making them ministers because they come from political families certainly does not augur well for efficiency and accountability.
One family inclusion, which I am happy about, is young Agatha Sangma, daughter of NCP leader and ex-speaker Mr. P Sangma. A 28 year old becoming a minister is a good first step towards inducting young and energetic MPS into the government. As MoS in Rural Development Ministry, I sincerly hope that she performs well. I would like her pay special attention to the development of the North East and set a good example for other young MPs who aspire to become ministers.
Arjun Singh and Shivraj Patil's exclusion are certainly worth mentioning and PM must be congratulated for doing the right thing.
We hope that HRD Ministry under Kapil Sibbal will bring about fundamental change in the mindset of HRD ministry mandarins. Access and Quality continue to be the major challenges as far as Primary Education is concerned. In higher education, we have been trying to maintain the quality by controlling the supply side, which is counter intuitive in this era of open and competitive economy. Hope Foreign Universities are allowed entry to India and are encouraged to offer quality education given that huge number of our bright students struggle to go abroad for education putting tremendous financial strain to their parents.
Another area of concern has been stalled infrastructure projects. Under Kamalnath, we hope that this sector get required policy direction and time-bound delivery of infrastructure projects is ensured.
Finance ministry has got an able administrator and hopefully they will be able to push ahead with pending reforms given that left will no longer be breathing down their neck.
Judicial reforms, police reforms and internal security overhaul are other areas of concern.
Overall, Dr Singh has done a reasonable job of picking his ministers and now we look forward to results. First 100 days will give a fairly good idea on where they are headed. Lets hope they deliver and don't disappoint the electorate who have voted for a stable and performing government.
RK
However, the drama which unfolded prior to and during government formation is worrying me. DMK washed their dirty family linen in public and shamelessly jockeyed for ministerial births for family members. They also made brazen attempts to include inefficient ministers who had serious corruption allegations against them. Balu and Raja were amongst the worst performing ministers in the previous government. National Highway program was brought to a halt under inefficient Balu and Raja gave away GSM spectrum causing huge revenue loss to the exchequer.
I had hoped that Mr. Manmohan Singh will not relent to pressure tactics of DMK and will keep such non-performers out of the cabinet, but that wasn't to be. Raja is back with a bang in the same ministry. We all can only hope that PM will make him perform this time around.
Another disturbing aspect of this cabinet is it's dynastic nature. One in every 4 minister comes from a political family and has been accommodated to placate the father, uncle or mother. Nothing wrong in having capable MPs as ministers who happen to come from political families, but making them ministers because they come from political families certainly does not augur well for efficiency and accountability.
One family inclusion, which I am happy about, is young Agatha Sangma, daughter of NCP leader and ex-speaker Mr. P Sangma. A 28 year old becoming a minister is a good first step towards inducting young and energetic MPS into the government. As MoS in Rural Development Ministry, I sincerly hope that she performs well. I would like her pay special attention to the development of the North East and set a good example for other young MPs who aspire to become ministers.
Arjun Singh and Shivraj Patil's exclusion are certainly worth mentioning and PM must be congratulated for doing the right thing.
We hope that HRD Ministry under Kapil Sibbal will bring about fundamental change in the mindset of HRD ministry mandarins. Access and Quality continue to be the major challenges as far as Primary Education is concerned. In higher education, we have been trying to maintain the quality by controlling the supply side, which is counter intuitive in this era of open and competitive economy. Hope Foreign Universities are allowed entry to India and are encouraged to offer quality education given that huge number of our bright students struggle to go abroad for education putting tremendous financial strain to their parents.
Another area of concern has been stalled infrastructure projects. Under Kamalnath, we hope that this sector get required policy direction and time-bound delivery of infrastructure projects is ensured.
Finance ministry has got an able administrator and hopefully they will be able to push ahead with pending reforms given that left will no longer be breathing down their neck.
Judicial reforms, police reforms and internal security overhaul are other areas of concern.
Overall, Dr Singh has done a reasonable job of picking his ministers and now we look forward to results. First 100 days will give a fairly good idea on where they are headed. Lets hope they deliver and don't disappoint the electorate who have voted for a stable and performing government.
RK
Wednesday, May 20, 2009
Long Live Indian Democracy!
Now that elections are over and we will have a stable government in place, it is a good time to do some analysis of national mood and trends - what worked and what did not work for various political parties and alliances.
First of all, I would like to talk about the victor - The Congress.
Rahul Gandhi is being credited for this victory and rightly so, as he led the campaign from the front. Everyone in Congress is celebrating the arrival of Rahul. He is being hailed as a visionary and an astute political brain. All this praise & jubilation is also a result of long wait and frustration of Congressmen, who had been waiting to offer legitimacy to Rahul's leadership and stature in the Congress party.
I wish him luck, as I believe that he is genuinely trying to bring a change in the Congress party. I would also credit him for legitimizing the genuine need for young and fresh faces in Indian politics. Though most young congressmen are sons and daughters of politicians but that's no reason to complain, they are young nonetheless. His much publicized effort to induct and promote young people in Indian politics are specially laudable as it is forcing other parties to think on similar lines.
I also congratulate Indian electorate for a brilliant performance by giving a clear mandate to a national party. By doing so, they have saved this country from vagaries of regional parties, the opportunistic political outfits disguising themselves as various fronts and alliances.
Congress however needs to look deeper and realize that this victory is not necessarily a national mandate in favor of congress but a combination of several factors, alliances and sheer luck in some cases.
Lets look at UP, which is the most talked about turnaround story of these elections. The decision to go alone was not a considered strategy but a forced consequence of SP's reluctance to part with seats. Kalyan Singh joining SP was a lucky break as minority community strategically voted for Congress in areas where Congress had winnable candidates. Rest of the congress candidates in UP could not even save their deposits. Moreover people in UP are really fed-up with SP-BSP misrule for the past 20 years. The real test will be 2012 assembly polls and I wish both national parties luck in UP as UP must be developed. Hopefully BJP would have got it's act together by then.
Bihar too was supposedly the part of the same 'Go Alone' strategy of Rahul Gandhi(though we all know that Lalu-Paswan duo forced it). No such electoral dividends accrued here, because people voted for good governance and inclusive agenda of JD(U)-BJP government.
So while Rahul is and should be given credit for working hard and leading from the front in UP (which boosted the morale of cadre and brought discipline), UP victory can not be solely attributed to 'Go Alone' strategy, as it wasn't a strategy but forced consequence.
Delhi & Rajasthan victories of Congress comes on the back of successful assembly wins in the recent past. 0-7 wipe out of BJP in Delhi is most disheartening for the only national alternative to Congress. BJP had not learned from it's defeat and mistakes in assembly polls in these 2 states and paid a heavy price. Hope they put their act together before 2014.
UPA's WB and TN victories should be attributed to allies. Rejection of left policies in WB and Mamta's Singur triumph were solely responsible. Congress just retained it's tlly of 6 in WB and in fact dropped to 8 (from 10) in TN. Vijayakanth's DMDK played a spoiler for AIADMK led alliance in TN as most anti DMK vote ended up going to DMDK. Mamata made spectacular gains in WB by cloaking 19 seats (from just 1 seat in 2004). BJP made a blunder by not being able to forge an alliance with Mamta, the erstwhile partner of NDA.
Left will be in real trouble in assembly elections in 2011, after 30 years of political supremacy in WB. This may not be a bad thing for people of WB who have suffered underdevelopment and violence by left cadre for decades now. Though Mamta too is not a good news for industrial development of WB after her tantrums in Singur.
In AP & Maharashtra, MNS and Chiranjeevi's PRP came to UPA's rescue. YSR's development and welfare schemes were also positives for Congress in AP. BJP/Shiv Sena got it completely wrong in Maharashtra by underestimating MNS effect. Their 6-0 tally in Bombay is really something to worry about.
BJP did well in MP, Gujarat, HP and Chattisgarh, primarily due to good governance of incumbent BJP governments. Though 16-10 tally in Gujarat is worrying for BJP. MP victory too wasn't very convincing. Jharkhand victory of BJP must be attributed to the mess created by Congress, RJD and JMM combine. BJP needs to really work hard to hold these states as anti-incumbency will be the main factor in all these states when they go to polls in next 4 years. Hence BJP can not count on these states for 2014 Lok Sabha elections as given.
Karnataka needs special mention as it gave maximum (19) MPs to BJP. Incumbent BJP swept the polls due to it's organizational strength and committed grass root cadre. Congress camp was chaotic with too many top leaders. Rahul effect was absent in Karnatka.
Kerala voted for UDF and LDF was routed, as they do every 5 years.
Coming to the under performers -
BJP was not able to perform to it's potential. While Congress exceeded it's own expectation on the up-side, BJP did the same on the down. BJP highlighted UPA's failures but failed to communicate their agenda effectively. This wasn't appreciated by the voters, as they did not want to take chances with the unknown. BJP did not talk enough about their progressive manifesto as well, which itself came very late. Some pre-poll incidents and speeches also hurt BJP's prospects in several constituencies, primarily in urban India. While Rahul Gandhi symbolized and projected youth agenda of the Congress, BJP could not counter it effectively.
Overall, it would seem that in the case of BJP, there was a disconnect from the expectations of the electorate. This is the second time in a row and needs serious thinking and remedial measures.
As far as other parties are concerned- Left, SP, BSP and other regional parties, this election has clearly demonstrated that only thing electorate cares for, is the DEVELOPMENT & GOOD GOVERNANCE. This is a great change in post Mandal politics of India.
Left paid for it's opportunistic politics, which believed in enjoying the power without shouldering the responsibility. This was a fitting reply to the arrogant & non-electable red brigade which controls the power strings sitting in cool comforts of Delhi while preaching supposedly pro-poor agenda.
Poor governance and under performance of BSP government in UP paid rest to the Prime Ministerial ambitions of Mayawati, who believed that being Dalit-ki-Beti is the necessary and sufficient condition for being the Prime Minister. This will be a fitting lesson to other non-performing regional Satraps of Indian politics. Similarly Lalu ji is still paying for his sins of keeping Bihar poor for 14 years.
This result has done good to our democracy and country. It showed that non performing regional outfits which survive only on caste and social engineering will not survive, while performing will be rewarded, as in the case of Bihar and Orissa. It would seem that Post Mandal caste politics is on it's last leg.
Overall, these elections are a victory for our democracy. The electorate has given a decisive verdict and expects the government to perform. Indian democracy is maturing much faster than our political parties. In all recent elections, the electorate had been wiser and has voted only on development & governance agenda. We must salute our electorate for displaying this discerning ability to make the 'Right Choice'. Our democracy is in safe hands.
Long live Indian Democracy!
CREDITs- Outlook has made this argument - Please see the link below-
http://outlookindia.com/full.asp?fodname=20090520&fname=sugata&sid=1
First of all, I would like to talk about the victor - The Congress.
Rahul Gandhi is being credited for this victory and rightly so, as he led the campaign from the front. Everyone in Congress is celebrating the arrival of Rahul. He is being hailed as a visionary and an astute political brain. All this praise & jubilation is also a result of long wait and frustration of Congressmen, who had been waiting to offer legitimacy to Rahul's leadership and stature in the Congress party.
I wish him luck, as I believe that he is genuinely trying to bring a change in the Congress party. I would also credit him for legitimizing the genuine need for young and fresh faces in Indian politics. Though most young congressmen are sons and daughters of politicians but that's no reason to complain, they are young nonetheless. His much publicized effort to induct and promote young people in Indian politics are specially laudable as it is forcing other parties to think on similar lines.
I also congratulate Indian electorate for a brilliant performance by giving a clear mandate to a national party. By doing so, they have saved this country from vagaries of regional parties, the opportunistic political outfits disguising themselves as various fronts and alliances.
Congress however needs to look deeper and realize that this victory is not necessarily a national mandate in favor of congress but a combination of several factors, alliances and sheer luck in some cases.
Lets look at UP, which is the most talked about turnaround story of these elections. The decision to go alone was not a considered strategy but a forced consequence of SP's reluctance to part with seats. Kalyan Singh joining SP was a lucky break as minority community strategically voted for Congress in areas where Congress had winnable candidates. Rest of the congress candidates in UP could not even save their deposits. Moreover people in UP are really fed-up with SP-BSP misrule for the past 20 years. The real test will be 2012 assembly polls and I wish both national parties luck in UP as UP must be developed. Hopefully BJP would have got it's act together by then.
Bihar too was supposedly the part of the same 'Go Alone' strategy of Rahul Gandhi(though we all know that Lalu-Paswan duo forced it). No such electoral dividends accrued here, because people voted for good governance and inclusive agenda of JD(U)-BJP government.
So while Rahul is and should be given credit for working hard and leading from the front in UP (which boosted the morale of cadre and brought discipline), UP victory can not be solely attributed to 'Go Alone' strategy, as it wasn't a strategy but forced consequence.
Delhi & Rajasthan victories of Congress comes on the back of successful assembly wins in the recent past. 0-7 wipe out of BJP in Delhi is most disheartening for the only national alternative to Congress. BJP had not learned from it's defeat and mistakes in assembly polls in these 2 states and paid a heavy price. Hope they put their act together before 2014.
UPA's WB and TN victories should be attributed to allies. Rejection of left policies in WB and Mamta's Singur triumph were solely responsible. Congress just retained it's tlly of 6 in WB and in fact dropped to 8 (from 10) in TN. Vijayakanth's DMDK played a spoiler for AIADMK led alliance in TN as most anti DMK vote ended up going to DMDK. Mamata made spectacular gains in WB by cloaking 19 seats (from just 1 seat in 2004). BJP made a blunder by not being able to forge an alliance with Mamta, the erstwhile partner of NDA.
Left will be in real trouble in assembly elections in 2011, after 30 years of political supremacy in WB. This may not be a bad thing for people of WB who have suffered underdevelopment and violence by left cadre for decades now. Though Mamta too is not a good news for industrial development of WB after her tantrums in Singur.
In AP & Maharashtra, MNS and Chiranjeevi's PRP came to UPA's rescue. YSR's development and welfare schemes were also positives for Congress in AP. BJP/Shiv Sena got it completely wrong in Maharashtra by underestimating MNS effect. Their 6-0 tally in Bombay is really something to worry about.
BJP did well in MP, Gujarat, HP and Chattisgarh, primarily due to good governance of incumbent BJP governments. Though 16-10 tally in Gujarat is worrying for BJP. MP victory too wasn't very convincing. Jharkhand victory of BJP must be attributed to the mess created by Congress, RJD and JMM combine. BJP needs to really work hard to hold these states as anti-incumbency will be the main factor in all these states when they go to polls in next 4 years. Hence BJP can not count on these states for 2014 Lok Sabha elections as given.
Karnataka needs special mention as it gave maximum (19) MPs to BJP. Incumbent BJP swept the polls due to it's organizational strength and committed grass root cadre. Congress camp was chaotic with too many top leaders. Rahul effect was absent in Karnatka.
Kerala voted for UDF and LDF was routed, as they do every 5 years.
Coming to the under performers -
BJP was not able to perform to it's potential. While Congress exceeded it's own expectation on the up-side, BJP did the same on the down. BJP highlighted UPA's failures but failed to communicate their agenda effectively. This wasn't appreciated by the voters, as they did not want to take chances with the unknown. BJP did not talk enough about their progressive manifesto as well, which itself came very late. Some pre-poll incidents and speeches also hurt BJP's prospects in several constituencies, primarily in urban India. While Rahul Gandhi symbolized and projected youth agenda of the Congress, BJP could not counter it effectively.
Overall, it would seem that in the case of BJP, there was a disconnect from the expectations of the electorate. This is the second time in a row and needs serious thinking and remedial measures.
As far as other parties are concerned- Left, SP, BSP and other regional parties, this election has clearly demonstrated that only thing electorate cares for, is the DEVELOPMENT & GOOD GOVERNANCE. This is a great change in post Mandal politics of India.
Left paid for it's opportunistic politics, which believed in enjoying the power without shouldering the responsibility. This was a fitting reply to the arrogant & non-electable red brigade which controls the power strings sitting in cool comforts of Delhi while preaching supposedly pro-poor agenda.
Poor governance and under performance of BSP government in UP paid rest to the Prime Ministerial ambitions of Mayawati, who believed that being Dalit-ki-Beti is the necessary and sufficient condition for being the Prime Minister. This will be a fitting lesson to other non-performing regional Satraps of Indian politics. Similarly Lalu ji is still paying for his sins of keeping Bihar poor for 14 years.
This result has done good to our democracy and country. It showed that non performing regional outfits which survive only on caste and social engineering will not survive, while performing will be rewarded, as in the case of Bihar and Orissa. It would seem that Post Mandal caste politics is on it's last leg.
Overall, these elections are a victory for our democracy. The electorate has given a decisive verdict and expects the government to perform. Indian democracy is maturing much faster than our political parties. In all recent elections, the electorate had been wiser and has voted only on development & governance agenda. We must salute our electorate for displaying this discerning ability to make the 'Right Choice'. Our democracy is in safe hands.
Long live Indian Democracy!
CREDITs- Outlook has made this argument - Please see the link below-
http://outlookindia.com/full.asp?fodname=20090520&fname=sugata&sid=1
Thursday, April 30, 2009
"Low Voter Turn Out" - No longer an urban aberration - It reflects nation's apathy towards 'Opportunistic Politics'
May-1st, The proverbial heartland of Indian democracy, UP polled just 45% in the 3rd phase of polls on 30th April. It seems that most politically active and significant state, which sends 80 MPs to the Lok Sabha, is slowly but steadily loosing interest in politics.
The high profile constituency of Lucknow voted just 34.5%. I spoke with few friends and family in Lucknow, who went to vote early fearing long queues but were surprised to see empty polling booths. Second largest city of UP, Kanpur voted just 39%.
The ssituation is same in neighboring Bihar where average polling in the first 3 phases has been 44%, 45% and 49% respectively. Compare this with average 58% in 2004 Lok Sabha elections. This is despite all round praise for Nitish Kumar who brought Bihar back on developmental map of the country.
Madhya Pradesh and Gujarat which went to poll on development & good governance agenda of their respective chief ministers too failed to excite the electorate with MP polling just 45% (48% in 2004) and Gujarat 50% (45% in 2004).
Maharashtra too is averaging 45% compared with 48% in 2004. Greater Bombay (10 seats) was 43.5%, even lower than 47.5% in 2004. This is really shocking given high decibel celebrity campaigns, voter awareness programs and emotionally charged environment post 26/11.
The above trend shows that in all large heartland states of the country, voters have lost interest in elections due to their apathy towards political class, which pursues corrupt and criminal brand of politics devoid of issues which concern the average citizen.
Political parties are responsible for this apathy as they field criminals and moneybags as their candidates, as these are supposedly winnable candidates. Party loyalists on their death bed are give tickets, sons and daughters of political families are other favorites apart from cine stars and venom spitting religious blokes. These worthy souls might win the election, but political class looses the respect and confidence of genuine voter who wants to believe in democracy and cares for the nation.
Current election distinctly lacks focus and debate on pressing national issues of worsening economy,crumbling infrastructure, security threats and most importantly governance and development.
Instead of educating and informing electorate about their manifesto and development agenda, political parties are busy snapping at their opponents and digging their past. They are more interested in highlighting what their opponents have not done, rather than discussing what they will do, if elected to power.
In my opinion, media is the biggest culprit, given that people expect them to be the voice of the civil society. In the race to garner TRP ratings, they have resorted to highlighting only sensational and meaningless issues.
Late evening talk shows (they call them debates) on national news channels have become a joke where anchor seems to believe that his decibel level is directly proportional to the TRP rating of his channel. Developmental and governance agenda is rarely discussed in the media, which is obsessed with quotable quotes from Varun, Priyanka, Maya and Modi.
Media has let civil society down and has completely failed in its responsibility to highlight pressing issues and force the debate among political class.
Low voter turnout is no longer an urban educated elite phenomenon, it is a reflection of all pervasive apathy of voters across the country towards political class. This is the biggest threat to our democracy which relies on the participation of the informed electorate to choose the best among available options. People have lost faith in the elections because they don't see any merit in the process.
Political parties need to work at the grass root level, engage with the civil society, grow their cadre and practice internal democracy if they want to regain the faith and confidence of the electorate.
Media too needs to introspect and stop insulting their viewers/readers by dishing out sensational and silly make-believe stories in the garb of the news.
RK
The high profile constituency of Lucknow voted just 34.5%. I spoke with few friends and family in Lucknow, who went to vote early fearing long queues but were surprised to see empty polling booths. Second largest city of UP, Kanpur voted just 39%.
The ssituation is same in neighboring Bihar where average polling in the first 3 phases has been 44%, 45% and 49% respectively. Compare this with average 58% in 2004 Lok Sabha elections. This is despite all round praise for Nitish Kumar who brought Bihar back on developmental map of the country.
Madhya Pradesh and Gujarat which went to poll on development & good governance agenda of their respective chief ministers too failed to excite the electorate with MP polling just 45% (48% in 2004) and Gujarat 50% (45% in 2004).
Maharashtra too is averaging 45% compared with 48% in 2004. Greater Bombay (10 seats) was 43.5%, even lower than 47.5% in 2004. This is really shocking given high decibel celebrity campaigns, voter awareness programs and emotionally charged environment post 26/11.
The above trend shows that in all large heartland states of the country, voters have lost interest in elections due to their apathy towards political class, which pursues corrupt and criminal brand of politics devoid of issues which concern the average citizen.
Political parties are responsible for this apathy as they field criminals and moneybags as their candidates, as these are supposedly winnable candidates. Party loyalists on their death bed are give tickets, sons and daughters of political families are other favorites apart from cine stars and venom spitting religious blokes. These worthy souls might win the election, but political class looses the respect and confidence of genuine voter who wants to believe in democracy and cares for the nation.
Current election distinctly lacks focus and debate on pressing national issues of worsening economy,crumbling infrastructure, security threats and most importantly governance and development.
Instead of educating and informing electorate about their manifesto and development agenda, political parties are busy snapping at their opponents and digging their past. They are more interested in highlighting what their opponents have not done, rather than discussing what they will do, if elected to power.
In my opinion, media is the biggest culprit, given that people expect them to be the voice of the civil society. In the race to garner TRP ratings, they have resorted to highlighting only sensational and meaningless issues.
Late evening talk shows (they call them debates) on national news channels have become a joke where anchor seems to believe that his decibel level is directly proportional to the TRP rating of his channel. Developmental and governance agenda is rarely discussed in the media, which is obsessed with quotable quotes from Varun, Priyanka, Maya and Modi.
Media has let civil society down and has completely failed in its responsibility to highlight pressing issues and force the debate among political class.
Low voter turnout is no longer an urban educated elite phenomenon, it is a reflection of all pervasive apathy of voters across the country towards political class. This is the biggest threat to our democracy which relies on the participation of the informed electorate to choose the best among available options. People have lost faith in the elections because they don't see any merit in the process.
Political parties need to work at the grass root level, engage with the civil society, grow their cadre and practice internal democracy if they want to regain the faith and confidence of the electorate.
Media too needs to introspect and stop insulting their viewers/readers by dishing out sensational and silly make-believe stories in the garb of the news.
RK
Monday, April 20, 2009
A deafening silence on funny money - S Gurumurthy - 03-04-2009
It was unthinkable six months ago. Switzerland, once a pet of Western capitalism, is now its hate object.
During World War II, the tiny nation was the common love of both the Allied and Axis powers, at war with each other. But neutral Switzerland, a friend of all since Napoleonic days, is friendless today. Its prime attraction, financial secrecy secured by law, has become its nemesis.
Germany first, France next, the US later, with the UK joining last, have, individually and together, declared a war against secret banking and tax havens like Switzerland.
It is a crusade by the West against the Swiss, says the media. Tax havens ask for no income tax from non-citizens and their banks ask no questions about their money. Modern capitalism had all along winked at secret banks and tax shelters; even nicknamed secret money ‘funny money’. But now the West chases secret money like it targets al-Qaeda.
Why this miraculous shift? The short answer: ‘financial crisis’. The Guardian of UK wrote (March 4), “European leaders grew increasingly agitated at how tax havens have fostered secrecy that has contributed to the collapse of banks the world over”. The newspaper’s Tax Gap Series estimated the unaccounted global wealth held in secret havens, including Switzerland, at $13 trillion. The annual tax evasion on the dirty fund, estimated at $255 billion was, the newspaper said, twice the global budget for poor nations. Der Spiegel, a German magazine, reported (March 3) that “Cash strapped governments around the world see the opportunity to finally put an end to bank secrecy” to access the money concealed by their nationals. It added “British Prime Minister Gordon Brown, French President Nicholas Sarkozy and German Chancellor Angela Merkel are now joining forces” and “they have set their sights on Switzerland”.
The crusade against Swiss banks was started by Germany in early 2008 when its intelligence bribed — bribed? Yes — an informant in LGT Bank in Liechtenstein and got a CD containing the names of some 1,500 tax dodgers, and raided half of them, who were its citizens. It also offered, free of cost, the names of citizens of other countries. Many accepted the offer gratefully.
Thereafter, in the third quarter of 2008, Germany pressed the Organisation of Economic Co-operation and Development (OECD) to blacklist Switzerland for protecting tax dodgers.
Switzerland is an OECD member and twothirds of the Swiss speak German. Yet Germany couldn’t care less. Soon, France joined Germany. “We want to put a stop to tax havens”, thundered Sarkozy.
At the preparatory G20 summit in Berlin early February, European leaders vowed to launch a globalcrusade against tax havens at the G20 meet in London, said the Irish Financial News. Europe’s anger was explicit in its refusal to allow the Swiss plea to be presented before the G20 in London.
The US moved even more menacingly. On February 18, the US Inland Revenue threatened the largest Swiss bank, UBS, with a lawsuit — that would have bankrupted it — unless the bank disclosed the names and accounts of some 300 American tax dodgers. A frightened UBS forthwith surrendered the secret data to the US before the account holders could stall it by a Swiss court order. Later, the Obama administration told the US Senate that it would bring laws to prise open the world’s most secretive tax havens.
At this point the UK joined the crusade.
Switzerland wilted under the pressure. Spiegel wrote that, for generations, the Swiss had held bank secrecy as “not negotiable”, and added that it was “no longer” so. The magazine quoted Swiss finance minister Merz as saying that they would have “to compromise”. The Swiss justice and foreign ministers, the magazine reported, had hinted that the country might have to stop protecting tax dodgers.
Subsequently, a nervous Merz met Gordon Brown on March 14 with a deal to prevent any move in G20 to blacklist his country. The deal was that Swiss banks would adopt the bank transparency rules of OECD countries. Brown claimed that it was “the beginning of the end of banking secrecy”. Yet, the US is pressing ahead with a law to punish banking secrecy.
When the crusade of the West against Swiss banks is succeeding, here Dr Manmohan Singh and his government, instead of celebrating, seem to be worried at their success. Three bits of evidence expose the Congress-led government’s not-so-well-hidden worry. First, when Germany’s finance ministry offered the LTG bank secret data to any country that needed it, the government would not ask for it despite reports that it contained some 100 Indian names. When in April last year, L K Advani wrote to Manmohan, requesting to him to ask Germany for the data, the then finance minister responded evasively.
Transparency International noted India’s “stoic silence over the issue” and that it “has not approached the German government for the data’’ (Economic Times, May 25 2008]. More, the revenue secretary in Delhi has reportedly advised the Indian ambassador in Berlin not to push Germany for the details as Germany might not like it – clear proof that the government is scuttling, not getting, the details.
Second, when, in the G20 preparatory meeting at Berlin, Germany and France were threatening to blacklist Swiss and other secret tax shelters, India’s silence at Berlin was deafening.
Montek Singh Ahluwalia, the PM’s righthand who, along with Dr Rakesh Mohan, represented India at Berlin, did not utter a word in support of Germany and France. India, a principal victim of banking secrecy, should have been leading the war cry against it. But it did not even morally support those waging the war.
Third, when on Sunday last L K Advani told Manmohan Singh that India should join in the G20 effort to break banking secrecy, the PM did not respond. The spokesperson of the Congress Abhishek Singhvi responded that G20 was not the forum for that, being blissfully ignorant of the fact that it was a main agenda of G20 meet. In fact just ahead of the meeting, Sarkozy had threatened to walk out unless the G20 decisively acted against secret banks and tax havens.
No need to strain further to understand Manmohan’s compulsions. The fear that drove the ruling family to abort the 1987 probe into Indian monies secreted abroad is still evident. But Advani’s threat to turn the recovery of Indian wealth secreted abroad an election issue has got the PM and his party off guard. The party has blundered, saying G20 is not the forum, when it is precisely that. Now the prime minister cannot remain silent. He has to do something. At least make a show of doing. But can he? QED: Dr Manmohan Singh stands between the devil and the deep sea — between his party and L K Advani.
During World War II, the tiny nation was the common love of both the Allied and Axis powers, at war with each other. But neutral Switzerland, a friend of all since Napoleonic days, is friendless today. Its prime attraction, financial secrecy secured by law, has become its nemesis.
Germany first, France next, the US later, with the UK joining last, have, individually and together, declared a war against secret banking and tax havens like Switzerland.
It is a crusade by the West against the Swiss, says the media. Tax havens ask for no income tax from non-citizens and their banks ask no questions about their money. Modern capitalism had all along winked at secret banks and tax shelters; even nicknamed secret money ‘funny money’. But now the West chases secret money like it targets al-Qaeda.
Why this miraculous shift? The short answer: ‘financial crisis’. The Guardian of UK wrote (March 4), “European leaders grew increasingly agitated at how tax havens have fostered secrecy that has contributed to the collapse of banks the world over”. The newspaper’s Tax Gap Series estimated the unaccounted global wealth held in secret havens, including Switzerland, at $13 trillion. The annual tax evasion on the dirty fund, estimated at $255 billion was, the newspaper said, twice the global budget for poor nations. Der Spiegel, a German magazine, reported (March 3) that “Cash strapped governments around the world see the opportunity to finally put an end to bank secrecy” to access the money concealed by their nationals. It added “British Prime Minister Gordon Brown, French President Nicholas Sarkozy and German Chancellor Angela Merkel are now joining forces” and “they have set their sights on Switzerland”.
The crusade against Swiss banks was started by Germany in early 2008 when its intelligence bribed — bribed? Yes — an informant in LGT Bank in Liechtenstein and got a CD containing the names of some 1,500 tax dodgers, and raided half of them, who were its citizens. It also offered, free of cost, the names of citizens of other countries. Many accepted the offer gratefully.
Thereafter, in the third quarter of 2008, Germany pressed the Organisation of Economic Co-operation and Development (OECD) to blacklist Switzerland for protecting tax dodgers.
Switzerland is an OECD member and twothirds of the Swiss speak German. Yet Germany couldn’t care less. Soon, France joined Germany. “We want to put a stop to tax havens”, thundered Sarkozy.
At the preparatory G20 summit in Berlin early February, European leaders vowed to launch a globalcrusade against tax havens at the G20 meet in London, said the Irish Financial News. Europe’s anger was explicit in its refusal to allow the Swiss plea to be presented before the G20 in London.
The US moved even more menacingly. On February 18, the US Inland Revenue threatened the largest Swiss bank, UBS, with a lawsuit — that would have bankrupted it — unless the bank disclosed the names and accounts of some 300 American tax dodgers. A frightened UBS forthwith surrendered the secret data to the US before the account holders could stall it by a Swiss court order. Later, the Obama administration told the US Senate that it would bring laws to prise open the world’s most secretive tax havens.
At this point the UK joined the crusade.
Switzerland wilted under the pressure. Spiegel wrote that, for generations, the Swiss had held bank secrecy as “not negotiable”, and added that it was “no longer” so. The magazine quoted Swiss finance minister Merz as saying that they would have “to compromise”. The Swiss justice and foreign ministers, the magazine reported, had hinted that the country might have to stop protecting tax dodgers.
Subsequently, a nervous Merz met Gordon Brown on March 14 with a deal to prevent any move in G20 to blacklist his country. The deal was that Swiss banks would adopt the bank transparency rules of OECD countries. Brown claimed that it was “the beginning of the end of banking secrecy”. Yet, the US is pressing ahead with a law to punish banking secrecy.
When the crusade of the West against Swiss banks is succeeding, here Dr Manmohan Singh and his government, instead of celebrating, seem to be worried at their success. Three bits of evidence expose the Congress-led government’s not-so-well-hidden worry. First, when Germany’s finance ministry offered the LTG bank secret data to any country that needed it, the government would not ask for it despite reports that it contained some 100 Indian names. When in April last year, L K Advani wrote to Manmohan, requesting to him to ask Germany for the data, the then finance minister responded evasively.
Transparency International noted India’s “stoic silence over the issue” and that it “has not approached the German government for the data’’ (Economic Times, May 25 2008]. More, the revenue secretary in Delhi has reportedly advised the Indian ambassador in Berlin not to push Germany for the details as Germany might not like it – clear proof that the government is scuttling, not getting, the details.
Second, when, in the G20 preparatory meeting at Berlin, Germany and France were threatening to blacklist Swiss and other secret tax shelters, India’s silence at Berlin was deafening.
Montek Singh Ahluwalia, the PM’s righthand who, along with Dr Rakesh Mohan, represented India at Berlin, did not utter a word in support of Germany and France. India, a principal victim of banking secrecy, should have been leading the war cry against it. But it did not even morally support those waging the war.
Third, when on Sunday last L K Advani told Manmohan Singh that India should join in the G20 effort to break banking secrecy, the PM did not respond. The spokesperson of the Congress Abhishek Singhvi responded that G20 was not the forum for that, being blissfully ignorant of the fact that it was a main agenda of G20 meet. In fact just ahead of the meeting, Sarkozy had threatened to walk out unless the G20 decisively acted against secret banks and tax havens.
No need to strain further to understand Manmohan’s compulsions. The fear that drove the ruling family to abort the 1987 probe into Indian monies secreted abroad is still evident. But Advani’s threat to turn the recovery of Indian wealth secreted abroad an election issue has got the PM and his party off guard. The party has blundered, saying G20 is not the forum, when it is precisely that. Now the prime minister cannot remain silent. He has to do something. At least make a show of doing. But can he? QED: Dr Manmohan Singh stands between the devil and the deep sea — between his party and L K Advani.
Secret Indian Wealth Aboard - S Gurumurthy -02-04-09
Switzerland has been accused of giving shelter to black money and there has been a lot of inflow of such wealth from India and other countries of the world.” This is not L K Advani, on election mode, speaking last Sunday, but the Swiss ambassador to India briefing the media in Delhi last year.
The occasion was the 60th anniversary of Indo-Swiss Friendship Treaty. Admitting that Indian black money gets hoarded in his country, he added that the new law in Switzerland would, not stop it, but control it “up to a certain limit”.
The Swiss diplomat authentically answers the first of the FAQs, that is, whether a lot of Indian money is really stashed away in Swiss banks. Swiss banks are not the only secret destination. There are 37 such shelters in the world, says US Inland Revenue. The secret owners of the secreted monies operate in secrecy — venal businessmen, corrupt politicians, public servants, drug lords, and criminal gangs like the D-company. The slush monies are the financial RDX for terror, besides weapons of mass destruction of national and global finance. That there is secret money is no more a secret. Only the amounts and persons are secret. But how much of India’s stolen wealth could be stashed in Switzerland? Specific estimates of this later. Before that, here is a sideshow, but a relevant one.
In the late 1980s, at the behest of The Indian Express, while investigating the Reliance scam, I had attempted to trail the Indian monies secreted abroad. In the course of the probe, I had contacted Fairfax,a US investigative firm, to uncover the Indian wealth stashed abroad. Impressed by their skills, I persuaded the Government of India to engage the firm for the task. Fairfax agreed to work for a slice of the black wealth uncovered by them as fee.
According to Swiss sources then, the Indian money secreted in Swiss banks was some $300 billion. That was enough to excite Fairfax to go for the kill. But, soon my efforts landed me in jail on March 13, 1987, when the CBI arrested me on charges that later turned out to be bogus, but were enough to stop the probe. The whole nation knew then that the real reason why rulers struck was their fear that the probe had targeted the Bofors payoff and secret money of the ruling family abroad. Rajiv Gandhi, who was the prime minister then, moved honest and bold civil servants like Vinod Pandey and Bhure Lal out of the probe and eventually sacked V P Singh who, as finance minister then, had authorised the efforts.
The chain of events that followed led to corruption emerging as the major issue in the 1989 polls in which Rajiv Gandhi, who had wiped out the opposition in 1984 elections, was defeated, and V P Singh became the prime minister. But there is a great lesson in these developments that often goes unnoticed. And that is, the way the bold national interest initiative to unearth the Indian black wealth abroad was aborted clearly confirmed that the ruling family was mortally afraid of any probe into secret money abroad. This fear haunts the family-led Congress party even today. That is why the 1987 episode is relevant now.
Now back to the main story.
Illicit money is the dirty outcome of modern capitalism. But, after 9/11, the US realized that not just the buccaneers in business, but Osama bin Laden could also hide his funds in secret havens and use them to bomb the world. Campaigns against dirty money as high security risk commenced with the path breaking research done by Raymond W Baker, a Harvard MBA and a Brookings scholar. He published his research as a book Capitalism’s Achilles Heel: Dirty Money and How to Renew the Free- Market
System.
The book was published in 2005. This set off intense debate in the US as the exposure linked dirty business and dirty money with terror and national security.
Raymond Baker had estimated, using authentic data, tools and reasons, the dirty wealth secreted in banks at $11.5 trillion to which, he found, one more trillion was being added annually. He added that in the process the West was getting an annual bounty of $500 billion from the developing countries, India included.
Global Financial Integrity (GFI), a global watchdog headed by Baker to curtail illicit money flows, has recently brought out detailed estimates of the black wealth hoarded in secret havens from different countries. GFI research shows that during the period 2002 to 2006, annually $27.3 billion was stashed away from India, making a total of $137.5 billion for the five-year period. That is, in just five years, Indian wealth amounting to Rs 6.88 lakh crore has been smuggled out of India. This gives a clue as to how much Indian money would have slipped out of India in the last 62 years, particularly during the Nehruvian socialist regime when the income tax (97.5 per cent) and wealth tax (almost equal to the income earned on investments) together constituted double the income earned.
It is undisputed that the Nehruvian socialist model forced huge sums out of India. So the amount of Indian black wealth secreted away in the last 60 years — estimated at from $500 billion (Rs 25 lakh crore) to $1400 billion (Rs 70 lakh crore) — does not seem to be wide off the mark. Economists call it flight of
capital. This is the people’s money stolen from them.
See the consequence even if part of it is brought back. A portion of it would make India free from all external debts which is now over $220 billion; India will transform into an economic superpower; some 10 or 15 Indian rupees could buy a US dollar which today 50 Indian rupees cannot; a litre of petrol on our roadside would cost Rs 15 or even less, against today’s 50 plus; the cost of imports in rupee terms would be down to a third or half; India’s entire infrastructure needs can be funded; India will become so energy efficient and cost competitive that exporters may need no sops at all; India will lend to — not, as it does now, borrow from — the world; Indian housing can be funded at affordable cost; rural poverty can be wiped out... The list is endless. But, then, is it possible to bring back the secreted monies? What are the roadblocks to such efforts?
Continued …
The occasion was the 60th anniversary of Indo-Swiss Friendship Treaty. Admitting that Indian black money gets hoarded in his country, he added that the new law in Switzerland would, not stop it, but control it “up to a certain limit”.
The Swiss diplomat authentically answers the first of the FAQs, that is, whether a lot of Indian money is really stashed away in Swiss banks. Swiss banks are not the only secret destination. There are 37 such shelters in the world, says US Inland Revenue. The secret owners of the secreted monies operate in secrecy — venal businessmen, corrupt politicians, public servants, drug lords, and criminal gangs like the D-company. The slush monies are the financial RDX for terror, besides weapons of mass destruction of national and global finance. That there is secret money is no more a secret. Only the amounts and persons are secret. But how much of India’s stolen wealth could be stashed in Switzerland? Specific estimates of this later. Before that, here is a sideshow, but a relevant one.
In the late 1980s, at the behest of The Indian Express, while investigating the Reliance scam, I had attempted to trail the Indian monies secreted abroad. In the course of the probe, I had contacted Fairfax,a US investigative firm, to uncover the Indian wealth stashed abroad. Impressed by their skills, I persuaded the Government of India to engage the firm for the task. Fairfax agreed to work for a slice of the black wealth uncovered by them as fee.
According to Swiss sources then, the Indian money secreted in Swiss banks was some $300 billion. That was enough to excite Fairfax to go for the kill. But, soon my efforts landed me in jail on March 13, 1987, when the CBI arrested me on charges that later turned out to be bogus, but were enough to stop the probe. The whole nation knew then that the real reason why rulers struck was their fear that the probe had targeted the Bofors payoff and secret money of the ruling family abroad. Rajiv Gandhi, who was the prime minister then, moved honest and bold civil servants like Vinod Pandey and Bhure Lal out of the probe and eventually sacked V P Singh who, as finance minister then, had authorised the efforts.
The chain of events that followed led to corruption emerging as the major issue in the 1989 polls in which Rajiv Gandhi, who had wiped out the opposition in 1984 elections, was defeated, and V P Singh became the prime minister. But there is a great lesson in these developments that often goes unnoticed. And that is, the way the bold national interest initiative to unearth the Indian black wealth abroad was aborted clearly confirmed that the ruling family was mortally afraid of any probe into secret money abroad. This fear haunts the family-led Congress party even today. That is why the 1987 episode is relevant now.
Now back to the main story.
Illicit money is the dirty outcome of modern capitalism. But, after 9/11, the US realized that not just the buccaneers in business, but Osama bin Laden could also hide his funds in secret havens and use them to bomb the world. Campaigns against dirty money as high security risk commenced with the path breaking research done by Raymond W Baker, a Harvard MBA and a Brookings scholar. He published his research as a book Capitalism’s Achilles Heel: Dirty Money and How to Renew the Free- Market
System.
The book was published in 2005. This set off intense debate in the US as the exposure linked dirty business and dirty money with terror and national security.
Raymond Baker had estimated, using authentic data, tools and reasons, the dirty wealth secreted in banks at $11.5 trillion to which, he found, one more trillion was being added annually. He added that in the process the West was getting an annual bounty of $500 billion from the developing countries, India included.
Global Financial Integrity (GFI), a global watchdog headed by Baker to curtail illicit money flows, has recently brought out detailed estimates of the black wealth hoarded in secret havens from different countries. GFI research shows that during the period 2002 to 2006, annually $27.3 billion was stashed away from India, making a total of $137.5 billion for the five-year period. That is, in just five years, Indian wealth amounting to Rs 6.88 lakh crore has been smuggled out of India. This gives a clue as to how much Indian money would have slipped out of India in the last 62 years, particularly during the Nehruvian socialist regime when the income tax (97.5 per cent) and wealth tax (almost equal to the income earned on investments) together constituted double the income earned.
It is undisputed that the Nehruvian socialist model forced huge sums out of India. So the amount of Indian black wealth secreted away in the last 60 years — estimated at from $500 billion (Rs 25 lakh crore) to $1400 billion (Rs 70 lakh crore) — does not seem to be wide off the mark. Economists call it flight of
capital. This is the people’s money stolen from them.
See the consequence even if part of it is brought back. A portion of it would make India free from all external debts which is now over $220 billion; India will transform into an economic superpower; some 10 or 15 Indian rupees could buy a US dollar which today 50 Indian rupees cannot; a litre of petrol on our roadside would cost Rs 15 or even less, against today’s 50 plus; the cost of imports in rupee terms would be down to a third or half; India’s entire infrastructure needs can be funded; India will become so energy efficient and cost competitive that exporters may need no sops at all; India will lend to — not, as it does now, borrow from — the world; Indian housing can be funded at affordable cost; rural poverty can be wiped out... The list is endless. But, then, is it possible to bring back the secreted monies? What are the roadblocks to such efforts?
Continued …
Subscribe to:
Posts (Atom)
Posts
