Friday, March 02, 2012

Criminals make perverted policies.

The auction of ONGC shares by the government yesterday was a disaster. Foreign investors stayed away as the floor price of Rs 290 was seen as too high and SBI and LIC, both public sector companies, had to step in to complete the sale. It is like transferring money from one pocket to another. With oil prices so high why did investors shun this sale? The reason is perverted oil policy. The government collects taxes on oil imports and then forces companies to keep prices down at the pump. Thus petrol sells for Rs 70/lit while diesel sells at Rs 42/lit. Even on petrol companies are losing Rs 3/lit so why should investors buy such shares? An article by Rupa Subramanya in the online Wall Street Journal explains why policies in India are perverted. Matthieu Chemen, Professor of Economics at McGill university in Canada has a study which will be published in the Journal of Law and Economics. He wanted to know the effect of electing a criminal because we know that 163 MPs have serious charges of murder, rape and kidnap against them. Poverty and criminality go together so they maybe caused by the same factors. To eliminate districts with high criminality he studied only those where criminals won by a very few votes, which would be a matter of chance. He found that electing a criminal resulted in a decrease in the monthly spending of SC, ST and OBC, considered to be low in caste, sectors by 19%. Since the poor are more vulnerable criminal politicians committed more crimes against them and it was easy to rob the poor to benefit family and supporters. Murder went up by 19%, riots by 23% and arson by 34%. Crimes against women also increased. Curiously, civil servant corruption dropped by 66%. This maybe because the criminal politician took all the loot leaving nothing for civil servants and also because since was little public service people did not see the need to bribe civil servants. Politicians defend themselves angrily when called criminals, saying that the majority are honest servants of the people. But are they? We do not select candidates in primaries as in the US or by local committees as in the UK. Candidates are forced on us by party bosses in a system called " tickets ". Surely they know the criminal records of these people and yet they select these scum as candidates giving us no choice. When these criminals win they are greeted by party members with garlands and sweets. Thus there are criminals and the rest are accessories and all parties are actually political gangs. Naturally, policies are perverted. Criminals have grabbed power and we must suffer.

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