Sometimes I wish my life had a erase/rewind button

Thursday, July 24, 2008

Question of Allegiance

Left Front chairman in West Bengal and Politburo member Biman Bose on the Somnath Chatterjee controversy as quoted in Indian Express
" He was following the Indian Constitution but we have to follow the party Constitution.” (link). So the Party Constitution is in conflict with Indian Constitution? And for members Indian Constitution does not matter if the Party lays a path in conflict? Interesting indeed.

Wednesday, July 23, 2008

Where is the inflation?

The prices of potatoes and onions may be rising but hey the MPs are coming cheap! I mean a mere crore to save a government? Its shocking I tell ya. Never have we sunk so low.
Now all we need to do is to include bribe rates in computing the rate of inflation. Its an essential commodity for most indians (for 'gifting'). These falling corruption rates will get the inflation rate down and generally create a feel good factor that might re-elect the government!

Tuesday, July 22, 2008

Its a Billion? 100 Billion? Its a Potato!

Zimbabwe introduces a 100 billion dollar bill! Hard to imagine that. Why not simply re-designate the 1 dollar bill to be equivalent to 100 billion dollar and save some paper? Given that the new bill will not even buy a loaf of bread it really makes me think how do business decide on price. If the 'official' inflation at 2.2 million percent is anything to go by, what you charge today will be too cheap tomorrow so how do you decide on a price?
Why not peg your prices to say a kilogram of say potatoes? While it will surely be comic to write on the plaque - this building costing a billion potato was dedicated to the glory of revolution by President Mugabe, it will also serve a reminder to future how an incompetent government can quickly ruin a rich country. A reminder we in India can do with. It might help us who are fortunate to live in a much more stable economy (at least as yet) to make sense of prices. And bring the much needed recognition to the veggie that has staved starvation for many.
Incidentally its a shame that the world has not done enough, a UN resolution being blocked by two of our own best friends Russia and China. I wonder why do votaries of morality in international politics that so eagerly jump on each Indian move with US as evil don't comment on that?

Updated Jul 30.
Apparently their reserve bank thought so too. They have introduced a new currently where 1 new Z$== Z$ 100 Billion of old. (Read is here on BBC). Potato has been denied its own currency

Why the farce

The farce being played out over the Indo-US nuclear deal while having huge entertainment value, is also instructive in its causes. The primary reasons I think on this is Congress's political incompetence matched by monumental hubris with another that we'll also discuss.
Hubris because as far as I can see, I saw no real effort in Congress trying to reach out to opposition (SP leaders even said it in so many words) and build a consensus over its merits. The same argument that goes that Left is guilty if they vote with BJP just because its BJP probably was at play or not. Lets assume both Left and BJP here have no hidden agenda and seriously think the deal is severely detrimental to Indian interest. So should the Left vote for the deal merely because BJP is opposing it even while fully believing that a party with national interest in mind will oppose it? The argument is dangerous in extreme. So if the only reason Congress did not talk to BJP overtly is this than God help India. Here you have 2 parties that together have been given more than 1/2 of all votes polled in India not talking even on matters of supreme national interest because of some new untouchability? This is both incompetence on Congress's part and monumental hubris if they thought that opposition's views never matter.

That is what comes of Congress's Durbari culture. Those who matter in the party are not those who understand politics or have talents useful to nation. They are there because they swear undying loyalty to the family. No wonder they seriously overestimated their hand and seriously underestimated the play of parochial interest that is so in our genes. But that is not the only juvenile political decision. Last year when the difference with Left first came out in open all the commentators were saying call the left's bluff and go for the kill. If Congress had actually gone in for the deal then they would have in all probability got a much bigger deal.

The fact is that the international momentum over the deal has largely fizzled out. Last year India would have had an upper hand in negotiations, now the government if it survives will still be perceived as a weak government that can fizzle out. Furthermore given the politics over the deal the impression is that plenty in India want to kill it which will give fodders to those opposed to deal internationally. Domestically the economy was doing very well, things were under control.
As the conventional wisdom says economic policy decisions take around 3 years to reflect in numbers. The good run till last year was more because of good fortune of favorable global outlook and earlier policies. Inflation of today is because of unfavorable global outlook and the supreme inaction of an emasculated government that had no substantial reform happening. Global outlook is out of our control but Manmohan Singh should have figured out that lack of reforms will come to haunt at some time.
Congress should have realized last year that BJP will not want an election while the economy was blazing and a feel good mood was around. Further more BJP as a party was moribund. left just had had Nandigram and Singrur and they would have hated an election even more. Granted Karat has never fought an election and hence doesn't care about public opinion but the Left governments in states do. They might have just backed out.

Congress has also been grossly incompetent in not emphasizing the various facets of the deal. It because for Left- a strategic alliance with US - which it is but its only a part of the whole, for others it was about energy which is also extremely important for a power starved India. But the deal is more than just that. For one, its about gaining entry to nuclear commerce club where US is not the only country. More importantly it opens doors to all sorts of dual use technologies. Indian scientists and engineers will be allowed to study such technologies in top foreign institutes. Dual use things like special alloys, fertilizers, space tech, military tech, doors will open to all sorts of collaboration with various leaders in the fields to India. Top talent can come over from abroad and work in Indian firms that will help raise the standard of cutting edge in India. Where is the even mention of all these things by the government.

The 3rd reason is BJP's own petty chagrin. As an MP in the Lok Sabha debate so eloquently put it the BJP's opposition is not because of substance of the deal, its because Advani's signature is not on it. There are reports in media of NSA and Manmohan briefing key leaders of BJP and those leaders accepting that the deal is very well done. Yet BJP chose to oppose the deal because of petty reasons.

The very fact that a party that has its base in urban India (arguably the future India) has nearly killed the deal that it itself started and knows is in national interest merely to score points, deserves itself being sent into political oblivion. The fact that I who hated the dynastic culture of Congress now hope that BJP is voted out humiliatingly should be a lesson to such parties. Those who are sent to parliament are supposed to work for the nation. If they are willing to sell out the nation of a mere red light on an antiquated car, they have no place in public life. And more than Congress which is mostly incompetent in this saga, it is BJP that acted evil and deserves to be taught a lesson.

Updated: Sometime later in the day:
A news report said that Ajit Singh and Dev Gowda have commented that Government seems to be winning and so they cannot predict how (their) voting shall go. Dev Gowda apparently has asked for Sonia's time later today. These leaders where in discussions with Both Government and opposition had publically gone anti government. Now that govt seems to be carrying the motion they are thinking of switching sides.
Translation: Sorry we made a wrong move but doesn't matter. You can hand over your money to us now.
Boy T20 wasn't half as much fun as this.

Monday, July 21, 2008

I wonder

I wonder if BJP might secretly be wishing for the Congress to win the confidence vote? That ways they will not have to make good their promise to 'renegotiate' the nuclear deal with USA. At the same time they can claim to have fought the deal if anything goes wrong in future!

PS: Amar Singh says SP now supports Congress on the nuclear deal since the deal is in national interest. He also says that 'communalism' is a greater threat to India than the nuclear deal hence supports Congress. Just wondering if the second biggest threat to nation can be in national interest?