Sunday, May 24, 2015

So much abuse means Mr Modi must be doing something right.

According to an article in China's official mouthpiece, Xinhua if China had democracy it would be like India. India has 20% of the world's poorest, our GDP is a quarter of that of China, we are involved in a " self perpetuating cycle of limitless debates " and there is " lobbying among interested groups ". All that is correct but things are changing. 80% of Indians think that our businesses are corrupt. They are not wrong. Most of our business fellows learnt their trade in the days of the license-permit system devised by the Congress in which fellows would pay politicians and civil servants to get control of resources or monopoly licenses so that they could make easy money by giving us shoddy goods and services. 66% of these fellows believe that paying bribes to get work done is acceptable. Fellows could just walk into offices of Chief Secretaries and ministers with no permission required. No longer. Mr Modi has stopped business fellows coming into ministry offices, leading to complaints of " neglect " and " lack of access ". One fellow said," Most big industrial groups are used to fixing things, which is not happening in this government." Documents regarding auctions of resources and trade policies were blatantly copied in ministry offices and handed over to business fellows in restaurants and trains, in the best traditions of a John le Carre novel. When money could be made so easily there was no need for research or innovation as we see in the Apples and Googles of the world. Even our much touted IT industry are glorified coolies of the business and not in the big league. Resources, such as telecom spectrum, are now given out in transparent auctions. Direct subsidies to consumers has stopped gas cylinders, meant for domestic use, from being diverted to restaurants and hotels. The black money law must be hurting badly so that some MPs actually lobbied for diluting the bill, arguing that it would cut demand and have an adverse effect on jobs. Apparently, some of these crooks have already left India to protect their black money. Good riddance. They should beware of international thugs, from Russian gangsters to Dawood Ibrahim, who may want a piece of the action. Naturally, all this has led to enormous anger among those who considered it their birthright to make massive amounts of money from corruption, with complete impunity. Black money acts as a stimulus to the economy although, since it cannot be controlled, it leads to inflation and income inequality in the long run. So cutting off the supply of black money has resulted in fall of consumer demand to 10 year lows. Curiously Mr Modi has been accused of being friendly to the rich and against the poor. Unfortunately for the liars consumer confidence is still the highest in the world. Growth will come as honest businesses thrive, inflation will remain under control as black money is reduced and the poor will benefit as their money is not stolen. Till then Mr Modi will have to take a lot of abuse. As Abraham Lincoln did.

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