It is a marathon, a good monsoon will help.

As we come to the second anniversary of the Modi government what are its achievements? Depends on who you ask. A professor from JNU (where else?) sees the glass as almost empty. " While the government may have done well on the deficit front, partially helped by the collapse in petroleum prices, its track record in reviving the economy is still shrouded in mystery, despite claims of improvement by the Central Statistical Office based on the new national accounts series," he writes. Exports are down, manufacturing is down, bank lending is down, private investment is down but retail inflation is still high. So what does the learned professor recommend to remedy the dire situation? Increase handouts to farmers. Perhaps, the professor should read about Venezuela, where Hugo Chavez won 3 terms with handouts. Now there is nothing to hand out. Or about Brazil where the President has just been suspended but the government's program of targeted subsidies, called the Bolsa Familia has won praise for lifting millions out of poverty. On the other hand, if you read the President of the BJP, the economy is projected to grow at 7.8% and the future is rosy because of all the fantastic things the government has done. As usual, the truth is somewhere in the middle. The government has indeed undertaken major reforms, but important ones are still outstanding, and it needs to improve implementation. The government has signed a formal agreement with the Reserve Bank to set monetary policy, it is committed to bringing down the fiscal deficit and it has set up an Expenditure Reforms Commission to take a look on how the government spends our money. Politicians in India use public funds as personal wealth, to be used as bribes, to win elections. Which is why retail inflation never seems to be permanently under control. The Modi government has recognised that dishing out subsidies will not solve the problem of poverty. It has embarked on programs of empowerment where citizens are treated as partners, rather than beggars, to have coins and chapatis thrown at them. So, is it time for celebrations? Definitely not. The biggest problem for India is its huge population, crammed into a relatively small land area. The greatest challenge for the government will be to provide jobs for the hundreds of millions of young people joining the work force every year. Manufacturing is the only solution for creating jobs but you need land to set up factories. You also need land for agriculture because people need food. And there has to be a market for what we make. Reserve Bank Governor, Raghuram Rajan is right to warn of expecting very high growth rates. A start has been made. We pray that mother nature helps with a good monsoon. 

Band aid is of no use, we need to find the cause.

Nobel Peace Prize winner Kailash Satyarthi writes a harrowing story of 2 children in Telengana, aged 12 and 8 years, who died of thirst while waiting for the mother to return with some water to drink. The mother was found unconscious with an empty water bottle by her side. Drought is causing immense suffering to children. Parents have withdrawn children from school and sent them out to work. Girls, some as young as 3 years of age, are being married off, presumably to boys who live in areas where water is plentiful. " We cannot afford to neglect our children. They cannot be the future we want, if they do not survive the present," he writes. Absolutely. Every person, every parent will agree with that statement, without reservation. So what is the solution? Mr Satyarthi urges the government to spend on relief for children because,"....it is imperative that the government takes speedy measures to assess and analyse the effects of drought on children and ensure no child in the affected areas is forced into child labour, bonded labour, child marriage, or is trafficked, or compelled to leave school." Who forces children into child labor, bonded labor or sells them for cash? The parents do. The problem in India is that people have the right to have as many children as they want but no responsibility for their safety or welfare. Recently a 72 year old woman gave birth to a boy in Amritsar after IVF treatment. Her husband is 79 years old. Who looks after the child if both parents die? After all, you can beat menopause but you cannot beat death. At the very least the doctor should be struck off. If we are to relieve the suffering of our children we need to study why there is a compulsion to give birth to children when they do not earn enough to support them. The fertility rate per woman has been declining in India. In rural areas both members work in 35% of families and 42% of them do not have any children, known as DINKS. Which means that family planning services are widely available and people are aware of them. Why then do some, especially those who cannot afford to, produce children? Is it because they get more subsidies from the government, is it because they can force children to work, or is it because children act as collateral to borrow money from local moneylenders? If the parent does not repay the loan or if the parent dies the children automatically become bonded labor until the loan is paid off. Why does bonded labor persist when it was banned by an act of parliament in 1976? Because poor people are 'vote bank' while children do not vote. An occasional child may escape the the prison of poverty but if there are too many then the task becomes impossible. To find a cure Mr Satyarthi must seek the cause. Without fear.

Bored with bread, everyone wants cake.

After results of elections in 4 states, and the Union Territory of Puducherry, were announced legions of pundits have been educating us with their valuable analyses of the results. The National Democratic Alliance, consisting of the BJP and its allies, won Assam with 86 out of a total of 126 seats, the Left Democratic Front, consisting of CPM and its allies, won Kerala with 91 out 140 seats, the AIADMK won Tamil Nadu with 134 out of 234 seats and Trinamool Congress won West Bengal with 211 out of a total of 294 seats. Congress managed a consolation victory in Puducherry winning 15 seats, while its ally, the DMK won 2 seats, giving it a majority in a 30 seat assembly. Apart from giving the power to loot to one set of politicians, as opposed to another, waht difference do these results make to India as a nation? Mamata Banerjee of West Bengal and J Jayalalithaa of Tamil Nadu join Nitish Kumar of Bihar and Arvind Kejriwal of Delhi in dreaming about becoming Prime Minister in 2019. Both Nitish Kumar and Kejriwal have adopted a strategy of abusing the Prime Minister, Narendra Modi, in extremely uncouth language. The rout of the Congress Party is blamed on Rahul Gandhi, with Mamata Banerjee's acid observation," Rahul Gandhi is a Narendra Modi asset." It is not really Gandhi's fault. He has been brought up in a sterile atmosphere of extreme wealth and Z+ security and has never had to sweat in his entire life of 46 years. He probably has no knowledge of how people live, how they earn a living, what difficulties they face, how they cope with endemic corruption and how the lack of quality education, healthcare and law and order make our lives a struggle for survival. His is a classic case of 'Let them eat cake'. Did he serve biscuits after his dog had eaten out of the plate? That would be taken as an extreme insult in India. Embarrassed, he did not attend a meeting with the Indian Youth Congress yesterday. Ms Sonia Gandhi tried to cheer Congress workers by saying," If one sticks to principles, no failure is permanent." Absolutely, and therein lies the problem. What principles does the Congress have? Milking Gandhi and Nehru generates diminishing returns as 65% of the population is below the age of 35 years. The poor are not satisfied with handouts and the educated are fed up with corruption, bred from crony capitalism. As for the BJP, it should not get carried away. As long as it is seen a party of Hindi-wallahs it will not be popular in the south or the east. It must remember that Hindus have many gods and goddesses so banging on about cows and vegetarianism creates anger. To embrace all Hindus it must ban castes. Regional satraps will only fight. We need a party of unity.

We have been told the problems, what is the solution?

The world seems to be locked into a cycle of low growth where the weakness of advanced economies, such as the US and Europe, reduces demand for the output of manufacturing economies, such as China, Japan and South Korea, who cut their import of commodities, hurting countries, such as Australia and Brazil. India is shining only because " In the land of the blind, the one-eyed man is king," according to the Governor of the Reserve Bank. His words caused a lot of commotion because they were deemed to be politically incorrect, when there is a growing demand to stop censoring movies and student rabble agitating for 'freedom of expression' to show solidarity with terrorists. Apparently, there are 3 narratives for global growth. One is that growth will remain weak for a prolonged period because advanced economies will take a long time to recover. The second view is that central banks will become increasing ineffective in stimulating growth and the third view is that financial markets will be volatile. Low growth is blamed for the popularity of anti-establishment candidates like Donald Trump in the US and Nerbert Hofer of the far right Freedom Party in Austria. British Prime Minister, David Cameron is desperately trying to keep Britain within Europe. The year started with huge volatility in stock markets around the world and there was fear of another recession. Long term low growth results in higher unemployment, long term unemployment results in loss of skills, which in turn, leads to lower growth. Central banks moved quickly to supply more liquidity to markets by slashing interest rates to negative which is supposed to force people to spend more and banks to lend more, by making it expensive to park extra funds with the central bank. Bond prices rose with investors willing to accept negative rates to keep their money safe. With so much cheap money in rich countries and borrowing costs at near zero emerging markets saw a flood of money looking for investment opportunities, resulting in overheating, inflation, asset-price bubbles and currency appreciation. Global value of real estate rose to $217 trillion in 2015, which is 3 times the value of the entire GDP of the world, Of this, 75% or $162 trillion is in residential properties. Raghuram Rajan has warned that unconventional monetary policies are becoming less effective, while costs are rising. As last ditch effort economists are seriously discussing the possibility of 'helicopter money', which was first proposed by Milton Friedman. The idea is to hand out wads of cash to people, presumably the poor, which will increase spending and thus stimulate the economy. India has been pursuing similar strategies for decades, as in MGNREGA, and cannot compete against other nations in tit-for-tat devaluation of currency to help exports, because India is one of the few countries where inflation is always a threat. We are doing very well at present. Hope this continues. 

It is not easy to die in India.

The government has posted a draft of Medical Treatment of Terminally-Ill Patients Bill on its website for feedback from the public. This bill seeks to provide guidelines for terminally ill patients to be allowed to die by withholding treatment, what is known as passive euthanasia. Unfortunately, as with everything in India, the entire debate will be hijacked by those who scream the loudest because they are totally convinced in the infallibility of their opinions, presided over by those who have awarded themselves god like status, so that we, the people, will be ignored, as is usual. Already several provisions in the bill are causing controversy. The youngest age at which a patient will be allowed to refuse treatment is 16 years, which is enraging activists, who point out that you cannot get a driving license or get married before the age of 18 years, so how can you choose to die. Doctors will have to decide whether the patient is mentally competent to give such consent, but we know doctors will be under enormous pressure from hospital administration to keep a patient alive as long as possible so that the final bill can be increased. If the patient is incapable of providing consent the family may approach the High Court for permission to withdraw treatment, which means they will be easy prey for lawyers, who will not hesitate to gouge as much out of them as possible. What about a person who is in a persistent vegetative state and needs to be fed and cleaned without the need for life support? Should food and water be withdrawn so that the person dies of hunger and thirst? In which case does it become active euthanasia instead of a passive one? These questions arise because of the case of Aruna Shanbaug who was kept alive for 42 years by the caring dedication of the wonderful nurses at KEM Hospital in Mumbai, while interfering busybodies wanted to force her death by stopping all nutrition. Fortunately the nurses won the case and looked after her another 4 years. The most important point in end of life care is to provide adequate pain relief along with sympathetic nursing. Adequate pain relief means drugs derived from opium, usually morphine. A morphine infusion is given continuously and patients have the option of taking a bolus anytime they feel pain. And therein lies the problem. In India there is great sympathy for criminals so that laws are passed to punish the innocent. To stop addiction to drugs laws have been made so stringent that chemists do not sell opium derivatives. They will go bankrupt bribing government inspectors. In Delhi it is virtually impossible to find anti-histamine injections, such as pheniramine. These drugs have been around for over 50 years and are excellent in treating insect stings, vertigo and other sudden allergic reactions. Thus the debate about euthanasia is useless without adequate drug support. Just noise.  

You cannot treat robbery with band-aid.

A book, 'Dissenting Diagnosis', written by two doctors seeks to expose the massive corruption in today's corporate hospitals where patients are ruthlessly exploited for profits. Every patient is seen by a number of doctors when there is no need. Unnecessary surgeries are carried out for which the doctor receives perhaps 10% of the bill, the rest going to the hospital. Large numbers of tests are ordered but a lot of them are not carried out. These are called 'sink tests' because the samples are thrown into the sink and the money is divided. Why have doctors sunk so low? Why have they stopped caring for patients who trust them with their lives? Doctors do not fall from trees, they are the product of the same society where corruption is a way of life, where you cannot get planning permission for building a house without paying a bribe and where seats in medical schools are for sale. Three girls committed suicide when they received no tuition even after paying large sums of money in fees to a medical school in Tamil Nadu. An online survey found that 70% of people in Delhi feel that corruption is at the same level as before, after change of government. Even after paying millions in fees and even higher sums under the table as 'capitation fees' the quality of education in medical colleges is considered very poor, according to a report in the US. Whereas Isaac Newton's Laws of Motion or the Raman effect, named after CV Raman, are still accepted as facts, causes, progress and treatment of diseases are changing constantly, which makes medical education the toughest among all subjects. Indeed, medical textbooks are out of date the day they are published so doctors have to study continuously to stay in touch with latest developments. Which means they must attend conferences where the latest research is discussed. Since most of the research takes place in the US and in Europe it costs a lot in travel and hotel expenses, which most doctors cannot afford. The government has passed a law making it a criminal offence for pharmaceutical firms to fund doctors because they may prescribe expensive medicines unnecessarily. How moral. Except that civil servants are allowed to accept foreign tours funded by foreign organisations, which could be working for the CIA, the ISI or the PLA. Is it any wonder that every country threatens us? The CBI reckons that over 2,400 top civil servants are corrupt, which means at least twice that number. The government will not allow doctors to work in other countries by denying them no-objection certificates. Lawyers are allowed to charge whatever just to lend their names and lose cases. All this is not to excuse bad medical practice but if things are to improve doctors must be treated with respect. Get the crooks, that is politicians, civil servants and lawyers far away. Let the profession heal.

The more money we get the happier we will be.

Poverty is the most thoroughly researched subject in economics, with professors spending vast amounts of time proving that if you hand out wads of cash to the poor they are able to spend more and feel much better. Er, if you hand over Rs 10 million to each of us we will also spend more and feel better and if you hand out Rs 100 million we will be joyous. However, the poor are not so happy. They feel that since they are the 'vote bank' money should be transferred from high street banks to them, and they produce lots of children to ensure that the vote bank is always growing. The government has started Direct Benefit Transfer, or DBT, to subsidise cooking gas for the poor, called PAHAL. " With nearly 150 million registered beneficiaries, it is probably the world's largest DBT programme ever," writes a professor." Yet, it accounts for only about 3.5% of the total annual flow of government subsidies. The provision of around Rs 200 billion for the scheme is about 8% of the total provision of Rs 2.50,433 trillion for subsidies in the 2016-17 Union budget. And Union subsidies in turn account for only about a third of total subsidies provided by the Union and state governments taken together. Thus, DBT under PAHAL is just a beginning in using DBT as the medium for providing subsidies. There is still a long way to go." God help us. The government provides subsidised foodgrains, kerosene and sugar through the Public Distribution System, or PDS, which is overseen by an army of civil servants to make sure that taxpayers do not benefit from the cheap food. If the PDS is also changed to DBT then the government will save enormous amounts of money. Very logical, except that you cannot open a bank in every village so how do villagers access money transferred to the nearest branch, which maybe miles away, with the dirt road converted to a muddy swamp during rains. To protect the health of the poor the government is giving away cooking gas connections at a cost of Rs 80 billion, but it turns out that villagers still prefer to use firewood and dried cow dung for cooking because these are free. So a lot words for nothing. However, doling out trillions of rupees in completely non-productive income is bound to have consequences for the economy. The result is that inflation is always bubbling away, ready to steam ahead. Retail inflation jumped to 5.39% in April from 4.83% in March. After falling for 17 months wholesale prices have moved into positive territory as food prices rise. Rural people spend 54.2% of income on food, so are very sensitive to food prices. Seems that politicians are playing a cute game to get rid of the present Governor of the Reserve Bank, who believes in keeping a tight lid on retail inflation. They probably want someone who will reduce interest rate, in the belief that low interest rate will stimulate growth and win them elections. The Congress thought the same. Where is it now? 

The call of nature according to the law of nature?

Why is the Maharashtra government so determined to punish girls from poor families, who dance for a living in bars in Mumbai, when the Supreme Court has explicitly rejected the ban on dance bars, which was imposed by the Congress in 2005? Dance bars prevented girls from being forced into prostitution by poverty. Why waste time on persecuting poor dance girls when politicians should be focusing like lasers on the terrible drought affecting the state? Everyone understands that a drought is an act of nature and is no one's fault so this illogical behavior must be to divert attention of the people. From what? From the enormous irrigation scam which maybe a major reason for the terrible human misery. Similarly, in this year of presidential election when the US should be debating on how to mitigate the weakness in the global economy, climate change and the conflicts in the Middle East what is the hottest topic of debate? The topic creating the greatest heat is on what bathroom a person will be allowed to use. North Carolina passed a law in March which says that a person has to use a public bathroom according to the gender of his birth and not according to gender of choice. This has caused enormous outrage among liberals who see this as an affront to transgender people and want bathrooms to be gender neutral. Seeing his opportunity Obama has asked all public schools to allow students to use a bathroom of their choice or lose their funding from the government. What we do in a bathroom is intensely private and most people would be embarrassed to perform bodily functions in front of the opposite sex. More than a million people have decided to boycott Target, a department store, because of its decision to allow people to use bathrooms of their choice. As parents, we can understand their discomfort. Who would want to take their little daughter into a bathroom which is being used by a man who thinks he is a woman. Is being normal means being guilty of majoritarianism? A former transgender, who went from being a man to being a woman and is now back to being a man, disagrees with the policy of gender neutral toilets, presumably having used both male and female bathrooms. If a man is transformed into a woman surgically and has a certificate to say so that is fine, but should we allow a man to use a ladies bathroom just because he feels he is a woman. If a man is not a man there can be no rape. The liberals do not want anyone to focus on Obama's miserable record as a warmonger who gloried in killing. Ukraine has been divided, Libya is a mess and in South Sudan civil war has created a brutal famine. Instead he has a group of people to create news, just like the old Stasi used to do. Bar girls and bathrooms, are diversions to hide crimes of politicians. People swallow the fiction. 

Societies are naturally left handed.

The US has a total of 538 electoral college votes and a majority of 270 is required to be elected president. Most states have a winner take all system so winning a state by even one vote gets a candidate all the electoral college votes of that state. In the last six general elections, from 1992 to 2012, 19 states (and Washington DC) have always voted Democrat and 13 have always voted Republican. The states that vote Democrat have more electoral college votes because they are more highly populated so winning those 19 states will give 242 votes to Hillary Clinton, presuming that she is the candidate against Donald Trump. If she takes Florida with 29 votes she reaches 271 and wins. So Trump could lose by winning 30 states out of 50. Trouble for Trump is that Clinton is likely to get an overwhelming share of minority votes, partly because of Trump's proposal to build a wall along the border with Mexico. Trump has promised to ban all Muslims from entering the US. Recently Clinton's lead against Bernie Sanders among nonwhite voters has come down. Sanders is also a Democrat so Clinton may hope to take most of the nonwhite votes against Trump, especially after his incendiary comments. Maybe not. If blacks see illegal immigrants from Mexico taking away their jobs they may vote for Trump. If there is one big terrorist attack in the US or in Europe after the party conventions in July Trump will waltz into the White House. Journalists in the US are heavily biased towards Democrats, about 4:1. Facebook is investigating claims that it is biased against conservative stories. If there is a left wing bias in rich countries in poorer countries it is enormous. In Brazil, President Dilma Rousseff has been suspended, awaiting an impeachment trial. She has been charged with winning re-election in 2014 by manipulating government accounts, to hide the growing deficit. Her party is accused of corruption, especially in the state oil company Petrobras. However, most of those opposing her in Congress are also accused of serious crimes. So why the anger against Rousseff? Because of a severe recession. The economy contracted by 3.8% in 2015, mainly because of the collapse in commodity prices globally. A combination of unemployment at 9% and inflation at 10.7% is hurting the poor who feel that it is because the elite is stealing everything. However, Rousseff still has supporters who say that social programs reduced poverty and inequality. In neighboring Venezuela President Nicolas Maduro has declared a state of emergency as the economy has collapsed completely. Here too the social handouts of Hugo Chavez were very popular. The people are angry now but once the economy improves they will once again vote for the party promising handouts. Just like people in India voted for the Congress after Vajpayee improved the economy and threw them out when the economy tanked. Mr Modi should watch out. If he does improve the economy, as he wants to do, the Congress will be lurking. That is why poor countries stay poor.

If it is for our benefit why worry about basic freedoms.

An Under Secretary at the Home Ministry was caught by the CBI for stealing files related to a NGO run by Teesta Setalvad. He claimed that his boss was putting pressure on him to favor Ford Foundation which is an American organisation based in New York, with assets of $12.4 billion, which is $1,240 crore in Indian terms. With that kind of money you can do an awful lot of damage. As is usual in India, the official has since gone missing. We love a good mystery, don't we? When the present government came into office it suspended activities of several foreign funded NGOs. We have every right to say that we are not beggars and we do not want funds from abroad, thank you very much. The Ford Foundation lobbied the US government to be allowed to carry on its activities in India. If someone refuses your help will you shove it down his throat? Mystery. The US government twisted arms of our government until it surrendered and allowed Ford Foundation to carry on doing whatever it was up to. Why? What has the US government to gain from the Foundation's activities? We know that the ISI handed over Osama bin Laden to the US in 2011 so that Barack Obama could win his re-election in 2012, following which Obama rewarded Pakistan with loads of sophisticated weapons. So, his government forcing ours to allow Ford to carry on here reeks of a foul stink. Our government has decided to register all babies born in government hospitals, which means poor people, with the Unique Identification Authority of India, or UIDAI, so that every baby has an Aadhar number. " Enrolling children immediately after birth will ensure better delivery of entitlements and services under Integrated Child Development Scheme and various government-run programmes," said the Director General of UIDAI. It will also help in tracking missing children said another official. Oh, goody. It is for the benefit of people, just like Ford Foundation. The only problem is that babies cannot give informed consent to such an intrusive procedure and parents are willing conspirators because they will benefit from handouts. It takes time to check fingerprints and retinal scans so why not just tattoo a number on the forearm or plant a chip under the skin, which can be read by a RFID scanner from the outside. After all, babies cannot object. Meanwhile, the Supreme Court has rejected the idea of free speech and held that defamation will remain a criminal offence. This is only natural since contempt of court is the most serious crime in India. So Ramalinga Raju has to pay a fine of Rs 50 million for stealing Rs 71.36 billion and causing losses to shareholders of Rs 140 billion but when Times Now mistakenly used a picture of a judge in cheating case, for which the channel apologised profusely, but apparently not sincerely enough, it was fined Rs 1 billion. India is the 3rd most dangerous country in the world for journalists. Wonder why?

Eliminate the resource curse by reducing our resource.

An ex-professor of Jawaharlal Nehru University, (where else?), writes that creating jobs is the most important task for the government. There were 2.3 million applications for the post of 368 posts of peons in UP last year and there have been recurrent agitations for reservations in government jobs by various communities and yet, the unemployment rate as a proportion of the total labor force was a mere 2.7%. How can we say that there is a lack of jobs when the unemployment ratio is perhaps the lowest in the world? Because, " In a country like India, poor people just cannot afford to be unemployed and find whatever work they can, simply to subsist. A significant proportion of their work, however, is neither sufficiently recognized nor rewarded. There are some who work hard for a living. There are many who work very hard but do not earn enough for a living. There are others who work but are paid little for their labor," says the article. Why? Because," in 2011-2012 the total labor force in India was 472 million ". That is the combined populations of the US, 319 million, Germany, 81 million, and Britain, 65 million. " India's most abundant resource, labor, is underutilized," the article says. Precisely. It is a classical 'resource curse'. Figures are interesting. Employment growth was picking up from 1983-1994, was strong from 1994 to 2005, when there was a BJP government and then falls off steeply from 2005 to 2012, when the Congress was in power. In fact, 5 million jobs were lost when the economy was growing strongly and employment in agriculture fell when trillions of rupees were spent on rural employment guarantee scheme. Another point to note is that employment was growing when the interest rate was very high, varying between 9 and 12% and the prime lending rate was higher than 12%. This article should have been written in 2007, when ministers were partying at Davos. Trouble is that the global economy is weak and the IMF keeps reducing the expected growth rate for this and the next year. With its economy faltering China is dumping its goods on world markets, depressing prices and hurting local industries. Governments are frozen in a state of inertia because market reforms and reforms of labor laws are difficult. Lack of jobs, and resultant poverty, makes people easy prey for the unscrupulous. HDFC Life was running a racket in Mumbai where young men were offering loans at very low rates if anyone bought insurance from them. We desperately need to create millions of meaningful jobs, but for that we need to change our rules so that business can flourish. Most of all we need to reduce our population. Else, nothing will work.

Fantastically corrupt? " Oh, bad luck."

So, Queen Elizabeth was heard saying that Chinese officials were " very rude ". When told by Police Commander, Lucy D'Orcy, that she was in charge of security during President Xi Jinping's official visit last year the Queen responded," Oh, bad luck " and then went on the say," They were very rude to the ambassador." We in India know that the Chinese are a completely uncivilised, barbaric nation, who call in our ambassador in Beijing at 2AM to hand over a threatening note, and eat every living creature, like monitor lizards. Earlier, the British Prime Minister, David Cameron told the Queen that Nigeria and Afghanistan are " fantastically corrupt ". This was on the eve of the anti corruption summit in London. In response, the President of Nigeria said," I am not going to demand any apology, what I am demanding is a return of the assets." Thereby putting his finger right on the spot. All these years Western countries have been the bankers for all the stolen money of the world. They suck in money stolen in poor countries and keep it if the thief dies or is jailed. After all, the heirs cannot demand a return of stolen money can they? India has been losing $51 billion every year from 2004 to 2013. Britain and the US are the biggest recipients of stolen funds. Having benefited from theft for decades why have the western countries suddenly become so pious? Not because they are honestly worried about our losses. Ever since the crash of 2008 Western countries had to spend vast sums of money to support their banks and desperately need to raise revenues to reduce deficits. Britain is unable to reduce its budget deficit, hence its national debt has risen to 83.7% of the GDP. Foreigners launder stolen money through London's booming property market. Real estate prices have risen so high that first time buyers cannot afford to enter the property market. Just as property prices in India are at crazy levels but show no sign of falling. The Governor of the Reserve Bank has asked builders to reduce prices to clear their inventory, probably because that is one sure way to clean black money out of the system, but having paid out billions in black money builders are reluctant to lose out. As usual Western countries are speaking with forked tongues. They only want to increase their own tax revenues but not help other countries. Mallya is relaxing in London . Britain refuses to hand over Christian Michel, the middleman in the AgustaWestland deal. Before that Lalit Modi departed for London and if the pressure becomes unbearable, maybe even Dawood Ibrahim will go and live in London, the cesspit of all the scum in the world. Fantastically corrupt? Depends on the eye of the beholder, does it not?

Robot owners and circus clowns, is that the future?

We Indians are aware of all the problems besetting our country. Poverty, malnutrition, farmer suicides, environmental degradation and rising inequality are some of the most pressing problems. The problems have continued for 68 years because politicians refuse to face the truth in case they lose subsequent elections. As Jean-Claude Juncker, the head of EU, once said," We all know what to do, we just don't know how to get re-elected after we've done it." It is much easier to throw handouts and pretend moral outrage if someone objects to charity on taxpayer money. In 1991 India came close to defaulting on our loans and the Reserve Bank had to sell gold for the country to survive.This led to economic reforms by the then Prime Minister, Narasimha Rao which propelled the country towards higher growth. Economic reforms are blamed by some for the rising inequality and therein lies the problem. Is it morally superior for everyone to be equally poor or should everyone have the opportunity to become rich through clever ideas, hard work and the ability to take risks. It is unacceptable that there are 2,083 people in India who possess in excess of $50 million while there are hundreds of millions who live on $2 a day. So what can the government do? There is a limit to how many people the government can employ because it would not be able to pay salaries, perks and pensions of countless millions. All it can do is to provide good education, training in skills and the economic conditions to create rewarding jobs. Problem is that you cannot force people to take advantage of opportunities and the end result may increase inequality. Even in the US some 32 million adults are unable to read. All this means " that there is no silver bullet for the government to guarantee full employment and solve structural inequality. The government can do something - but it remains to be seen exactly what, and how much." Things might be about to get much worse. As artificial intelligence improves there maybe a " great decoupling ", in which " advances in productivity, mainly driven by the development of digital technology, and the resulting economic growth, no longer cause employment and workers' incomes to rise ". As robots take over jobs presently done by humans, in driving, in factories and even white collar work, such as accounting, there will be need for fewer humans. In some countries populations are declining but in India it is still increasing. Humans will have to move into services such as entertainment, such as ballet dancing and classical music. But everyone does not have the physique for ballet and some people are tone deaf. Should the government open dancing schools? Maybe juggling as well.

The greasy pole of the global value chain.

An angry article compares liberalisation in international trade to a Ponzi scheme, perpetrated by the West, especially the European Union. According to the EU Trade Commissioner, Cecilia Malmstrom," The fundamental role of EU trade policy must be to create economic opportunity for people, starting with people in Europe." Nothing wrong in that. The European Union is a collection of 28 countries with free travel and free trade between member countries. Within this bloc the Eurozone consists of 19 countries which have a common currency, the Euro, with the European Central Bank setting a common monetary policy, but leaving each member to set its own fiscal policy. No wonder the EU economy is under severe stress. Some think that another crisis is almost inevitable while others point to the 0.6% growth in the first quarter of this year, which would translate to an annual growth rate of 2.2%, as a sign of the economy beginning to recover. Trouble is that unemployment rate is still above 10%, banks are still reluctant to lend despite a negative interest rate and prices fell 0.2% in April, which shows the weakness in consumer demand. Latest figures show a fall in manufacturing, as the boost from the collapse in commodity prices begins to wear off, giving rise to fears of deflation. Germany, as the largest economy in the Eurozone, is blamed for not spending enough, which is shown in its high savings rate and a current account surplus of over 30 billion Euros. No surprise that the EU wants trade deals to be beneficial to itself. The EU wants Global Value Chains to provide " energy, raw materials, or intermediate goods or services ", which is taken to mean that developing countries should provide basic commodities and parts while the EU will manufacture high value end products. To that end the EU wants that " trade must also be about values and principles as much it is about economic principles ". In other words the EU wants to use its 'values' on human rights, labour and environment to gain an upper hand in trade. Countries, which depend on exporting commodities are suffering because of the fall in prices. Whether they are borrowing from future generations is something they have to work out. Saudi Arabia is increasing oil production despite weak prices. We do not know whether it wants to cripple US shale oil production, hit Iran's earnings from oil or to sell off as much as it can before renewable energy makes oil redundant. European countries have been used to looting raw materials from their erstwhile colonies and are unable to adjust to equality in trade. The US was founded on the blood of indigenous Indians and then grew rich on slavery. Now they want to use trade as a weapon. The only solution to grow wealthy through education, innovation and producing high value products. Create our own Ponzi scheme.

Even rich children are not getting educated. Why not?

A survey, conducted between January and July 2014, by the National Sample Survey Organisation highlights the wide gap in access to education between the rich and the poor. The survey shows a massive gap between the lowest and highest quintiles in terms of income, and between rural and urban populations. No surprise there. What is surprising are the figures for the richest fifth of the population. Taking only the urban people, 89% of the richest fifth attain primary education, 72% attain secondary education, 66% attain higher secondary education and a paltry 31% attain education above higher secondary. Primary means up to Class VIII, secondary is up to Class X, higher secondary is up to Class XII and college thereafter. The question is: Why are so few of richer children getting educated, why not 100%? It is not as if we have hundreds of Bill Gates and Mark Zuckerberg, dropping out of college to launch companies spanning the entire globe. Why are 69% of children in the economic upper fifth of the population not going to college? It cannot be because of a lack of seats in colleges, because education is very big business and we see a new college opening almost everyday. The Governor of the Reserve Bank has warned students not to take education loans for useless degrees. So here is a terrifying thought: Only 31% of top 20% of the population are attending college and the vast majority of them are getting rubbish degrees. Which means that India is a nation of duffers. Only 7% of MBA graduates are fit for employment, the rest 93% earn less than Rs 10,000 a month, if they get any job at all. Americans are most unimpressed with the standard of our medical education. But private space industry in the US is opposed to Indian Space Research Organisation because it is able to put satellites into orbit at very cheap rates. So a tiny few are up there with the best. If our education system improves we will be unbeatable. Over 80% of engineering graduates know nothing. In fact, those who are learning skills earn much more than engineers and MBAs. What happens to these graduates? After spending hundreds of thousands getting a degree can they train as plumbers or electricians? It is not just a loss of face, their worth will drop precipitously in the marriage market, especially since gender selection has drastically reduced the number of eligible girls. The Vyapam scam in Madhya Pradesh in which the process of selecting all the candidates for medical and engineering colleges and for jobs in government was found to be controlled by criminals is an example of the rot in the system. The Bihar government found money to reward highly paid MLAs but had no money to pay school teachers. Shows what politicians think about education. If people remain stupid it is easy to lie to them. Win elections.

Why persist with policies that have failed for 68 years?

The International Monetary Fund estimates that India's Gini coefficient has gone up from 45 in 1990 to 51 in 2013. The higher the value the more the inequality in income among the rich and the poor. To treat any problem the cause must be understood. " There are several possible explanations for growing income inequality - from the nature of technological progress to the lack of opportunities due to the caste system, to ineffective government programmes and lack of infrastructure that connects people in the interiors to markets," says an article. So, what to do about it? Technology cannot be halted, its progress is relentless. It is in the nature of human beings to want to create something new. Already scientists are predicting that robots will take over half the jobs in the next 30 years. Which means that inequality will only grow. Japan is set to open the first farm run almost exclusively by robots. Only 140 million out of 300 million were able to find jobs in India between 1991 and 2013. If robots are set to take over most jobs the situation can only get worse. It has become fashionable to blame the caste system for inequality, thereby shifting the blame on Hindu religion. We can argue that, with 50% reservation in higher education and government jobs, low caste status is actually a boon. Reservation in Tamil Nadu is at 69%. Recently, Jats in Haryana were included in reservation and then Patels were given 10% in Gujarat. If caste is a cause of inequality why is there so much demand to be classed as low caste? Government programs to reduce inequality means handouts. Apparently, countries in South America have been very successful in reducing inequality through redistribution. The Bolsa Familia program in Brazil has been lauded by the World Bank for reducing poverty. Commodity prices fell, inflation went up and the economy has gone into a severe recession. Socialist policies of Hugo Chavez in Venezuela have resulted in such severe crisis that there is no electricity in a country with the largest oil reserves in the world. So what is the answer? Unfortunately, people talk about inequality when they should be talking about poverty. There will always be people with exceptional abilities, such as Thomas Edison and James Watt, and if they are suppressed we will go back to living in caves. Redistribution is ineffective because of the leakage in the system. Even if done honestly, which is impossible in India, a lot of money will always be wasted in paying salaries of civil servants entrusted with the program. Faced with low growth countries are contemplating 'helicopter money' in which money will be distributed to poor people so that increased spending results in higher growth. India has already been practising the concept through various programs like the MGNREGA. They have not worked. At the risk of boring repetition, reducing population is the only answer. Reduce poverty and inequality will follow. Logical.

Our justice system in big trouble because of an Italian court.

The Indian government seems to have been caught off guard by the verdict of an Italian court, which found that bribes had definitely been paid in the AgustaWestland helicopter deal. Giuseppe Orsi of AgustaWestland has been sentenced to 4.5 years and Bruno Spagnolini of Finmeccanica has been sentenced to 4 years in prison. " The destination - at least partial - of the illicit funding to the payment of the price of corruption of Marshal Tyagi for his intervention in favour of AgustaWestland for the VVIP helicopters is validly proven," the court observed. SP Tiyagi was chief of the Air Force at the time of the deal. The reason for the government's discomfiture is that the investigation was meandering along to a dead end, as is the routine in India, but now it is being forced to show that it is doing something. In India every effort is made to drag a case on for years, until witnesses have died or forgotten the details or have succumbed to threats and retracted their testimony, which is known as 'turning hostile'. As happened in the murder of Jessica Lall, where the main witness, Shayan Munshi turned hostile. He has been charged with perjury but even that case is dragging on. The case concerning the murder of thousands of Sikhs in 1984, following the shooting of Indira Gandhi, is still going on. Despite innumerable commissions identifying the guilty, and witnesses clearly identifying those who instigated the murders no conclusion is in sight. One of the accused, HKL Bhagat, has died already. In the BMW case where Sanjeev Nanda killed 6 people with his car and then went home and washed his car in an effort to destroy evidence, the witness Kukarni turned hostile. Two senior lawyers were caught on tape trying to bribe Kukarni to change his evidence. Nanda was sentenced to 2 years in prison but let off because of 'time served'. Ain't that grand? Film star, Salman Khan was accused of hunting blackbucks, which is an endangered species. The game went on for 17 years, he was sentenced to prison and has now been let off. The same Mr Khan was implicated in a hit and run incident in 2002 in which one person was killed. He has been let off by the High Court but the legal ping pong is still going on. In the case of Ms Jayalalithaa, Chief Minister of Tamil Nadu, the High Court did its own calculations and came to the conclusion that only 10% of her wealth was 'disproportionate assets', which means ill-gotten. Apparently, it is allowed to have 10% of your wealth from dubious sources. But, er, 10% of Rs 1 billion is Rs 100 million, which is a huge some of money. The whole system is designed to let off the guilty. Unless you annoy a judge. Then judgement is swift and severe. A fellow got drunk and lost a judge's coat. He lost his job instantly and has been jailed. An inadvertent mix up in names resulted in a fine of Rs 1 billion on Times Now, despite repeated public apologies. Loot, murder, treason, all are games. Only, do not annoy a judge. Yes M'lud.

Why can't every government department be like Isro?

It is not a surprise that India is poor, weak and disrespected by other nations, it is a wonder that we survive at all. The latest shouting match in parliament on bribery allegations in the purchase of helicopters is nothing new. Coal, telecom, Commonwealth Games. Adarsh, and now helicopters, at times it seems that every deal during the Congress rule from 2004-2014 was corrupt. Why is there so much crime in India? Because taxpayer money is seen as private property by politicians. In Tamil Nadu politicians are promising free cell phones, free electricity, and 50% subsidy on buying scooters. All politicians are billionaires so they will help the poor with their own money won't they, just like Bill Gates is giving away his fortune through his foundation? Not our lot. All promises are based on taxpayer money. One article laments the loss of life and public funds due to callous politicians in the month of April. People killed by a bridge collapsing in Kolkata, people burnt to death by fireworks in a temple in Kerala and vast amounts of food stocks disappearing in Punjab. How can Rs 45 billion worth of grains go missing from government godowns? Was the grain stolen or was the money borrowed from banks used for other purposes? How do politicians get away with this kind of loot? By using taxpayer money to promise free goodies and then claiming that victory at elections was absolution for their crimes. The Reserve Bank has asked banks to set aside 15% of their loans to Punjab, in case there is default. The total maybe anything up to Rs 200 billion. Where politicians lead activists are sure to follow. Every year 20,000 people die from rabies, from 30 million stray dogs roaming our streets. Activists, supported by western saboteurs, are adamantly against any form of culling. They want all dogs to be sterilised. Will they pay for the operations? Hell no. They want the taxpayer to pay. Even our judges are loose with taxpayer money. A court ordered the government of Kerala to pay Rs 40,000 to the family of a woman who died of rabies. Why is the taxpayer being penalised for the sin of activists? Mystery. Yet where genuine grievances are concerned you have to wait years, sometimes decades, to get any relief. People waste Rs 800 billion every year because of time wasted in futile visits to courtrooms across the country. When asked why he wanted a post at a public sector bank an honest candidate replied," Upar ki kamayee," which meant extra income or bribes. If public funds can be used for the benefit of politicians, civil servants and even dogs, why should he not get a share? Yet, a government organisation, Isro is putting foreign satellites in orbit at very low cost, purely through indigenous technology. If only the rest were like Isro the whole of India would be flying. If only.

Do we really need to behave like lemmings?

Economists are growing increasingly pessimistic about the prospects of growth for the global economy. Productivity is falling, inequality in income is growing and there is a fall in investment globally. " As income is redistributed from labour to capital, it flows from those who have a higher marginal propensity to spend to those who have a higher marginal propensity to save," writes Professor Roubini. Which means, people who earn less tend to spend a higher proportion of their income while rich people tend to save more. " Moreover, a protracted cyclical slump can lead to lower trend growth. Economists call this 'hysteresis': Long-term unemployment erodes workers' skills and human capital; and, because innovation is embedded in new capital goods, low investment leads to permanently lower productivity growth." Which means that new investment has a much higher component of automation, reducing the need for human labor. Some very rich people met in California this week to discuss how robots are taking over jobs. Bankers with PhDs and MBAs are being replaced by computers. As unemployment rises a large pool of educated workers competing for fewer jobs puts downward pressure on wages, which have remained stagnant for decades. The last 250 years has seen an enormous amount of growth compressed into a relatively short period of time so some adjustment is natural. However, if wages remain stagnant workers are reluctant to increase productivity and zero interest rates allow the wealthy to earn profits without creating jobs. This is shown by weakness of global manufacturing activity and where it is growing strongly, as in Italy and Germany, it is because of deep discounts. The Eurozone grew by 0.6% in the first 3 months of the year but inflation will remain at around 0.2%, reflecting a lack of demand, and rising debt remains a serious concern for Greece, Spain, Italy and even France. With no solution to the migration crisis some think that another Euro crisis is almost inevitable. Poverty is rising in Japan where unemployment is low, crime is low and irresponsible behavior, such as drug addiction and single parent families, is low. The most probable reasons are low productivity and competition from low wage countries. Central banks have resorted to zero interest rates, in some cases negative rates, and quantitative easing in the hope that cheap money will encourage spending and new investment. Wistful articles about looking for a new paradigm sound like desperation. The mortal drought in India and the wildfires in Canada are a warning that global warming is going to impact global growth adversely. This maybe what Thomas Malthus foresaw 250 years ago, only the details are different. We need to reduce human population drastically. Or perish, like lemmings.

Who is afraid of Donald Trump?

President Xi Jinping of China has denied that there is a " House of Cards power struggle inside his government. House of Cards is a television serial based on entirely fictitious characters. It is interesting that he is having to deny a power struggle in his government when Robert Mugabe, Pierre Nkurunziza and Kim Jong Un are not. However, he admitted that," There are careerists and conspirators existing in our party and undermining the party's governance." Since coming to power Xi has accumulated a plethora of titles so that he has been called a " chairman of everything ". He has been referred to as 'core leader' and recently was photographed in an army uniform while being named 'commander in chief'. A collection of his quotations are available in an app, much like Mao Zedong's 'Little Red Book'. Phrases like the 'Crucial Minority', which means the party elite, 'Toilet Revolution' and 'Feudal Residue' are some of the quotes. Perhaps, we can conclude that a serious power struggle is going on in China and Xi Jinping is not as secure as he makes out to be. One month ago the Chinese government mouthpiece Global Times saw Donald Trump as an example of everything that is wrong with democracy saying," Mussolini and Hitler came to power through elections, a heavy lesson for western democracy." But yesterday it reacted cautiously when Trump said that " we can't allow China to rape our country " by its trade policy, after his victory in the Indiana primary. Xi will be watching nervously to see if Trump wins in November and what policies he adopts to reduce the huge trade deficit with China. Another country watching Trump's rise nervously will be Pakistan. The US Congress has refused to fund the sale of F-16 jets to Pakistan prompting the Foreign Minister to say," If funding is arranged, Pakistan will get the F-16s, otherwise we will opt for jets from some other place." Empty threat from a bankrupt nation? Talking about Dr Shakeel Afridi, who is in prison for helping the Americans locate Osama bin Laden, Trump said, with a snap of his fingers," I think I would get him out in two minutes. I would tell them (Pakistan) let him out and I'm sure they would let him out." Reacting to the comment the Interior Minister snarled," Contrary to Mr Trump's misconception, Pakistan is not a colony of America," and advised him to " treat sovereign states with respect ". Pakistan may not be a colony of the US, like Britain is, but it is a beggar nation, surviving on handouts, a failed state and the world's biggest sponsor of terrorism. These 2 countries are inherently unstable and a little push may send them over the edge. They are also our biggest enemies. So, wish The Donald a big victory in November. 

When are eye-watering perks of no benefit?

We would never have known if it was not for anti-bribery laws in OECD countries. Massive bribes were paid in the AugustaWestland deal and the investigative agencies did nothing until now, when an Italian court has sentenced the former chief of the company, Giuseppe Orsi, to 4 years in prison. One of those involved, Christian Michel, has named Ms Sonia Gandhi as the prime mover behind the deal and his lawyer has agreed that he wrote the note naming her. Michel has offered to testify in India if he is not arrested but the government refuses to give him that guarantee. Why? To protect the Gandhis? The government should reach a plea bargain with Michel, offering him immunity, and get it approved  by the Supreme Court so that it cannot be challenged. Every effort should be made to get Michel to testify under oath in a court of law where he maybe cross examined so that the case is watertight. Is it any wonder that people are angry at the unending corruption that occurred during the 10 years of Congress rule? Two of the accused were apparently on the board of a real estate company, Emaar MGF, which is being linked to Mr Rahul Gandhi's aide, Kanishka Singh. Former Chief of the Indian Air Force, SP Tiyagi has admitted to meeting with company officials. Not only did corruption waste Indian taxpayer money on helicopters, which did not meet specifications, but it corrupted Air Force officers, thus making our nation insecure. If there is one man who was totally responsible for all the crime that went on from 2004-2014 it was Dr Manmohan Singh, who was Prime Minister during that period. He was never elected by the people but was appointed by Ms Gandhi and was a puppet in her hands. He knew everything that was going on but chose to do nothing, even appointing people with enormous conflict of interest to cabinet positions. It is an absolute lie to say that he did not benefit personally from all the corruption. Being Prime Minister for 10 years with everything paid for by the taxpayer is no benefit? Travelling the world with family is no benefit? Living free in a huge bungalow in Lutyens Delhi after retirement is no benefit? The house has 31 Air Conditioners, 15 desert coolers, 16 air purifiers and 14 heaters. If the man had any sharam or izzat he would have resigned very early but he chose to hang on for 2 full terms, for all the perks of the job, never mind that he was neck deep in stinking muck. Then there was the Adarsh scam in Mumbai where a defense land was illegally used for building a block of apartments which were sold to politicians, civil servants and armed forces officers. Giving flats to officers of the armed forces were clearly sweeteners to overcome any objections. Screaming matches in parliament is of no used. We want the guilty to hang. Unless they choose to run away. It is easy, ask Vijay Mallya.  

Surely Trump will be much better than Clinton for India?

A country consists of all kinds of people, rich and poor, healthy and ill, clever and not so clever, abled and disabled, natives and immigrants, all having different expectations from politicians they vote for. So, can you be all things to all the people?  In a country like India, with an overwhelming number of poor, it is easy to campaign on promises of handouts on taxpayer money or divide the people by promising reservations in government jobs but what can you do in a more balanced and wealthy country like the US? Hillary Clinton is campaigning on being all things to all people by promising " civil rights, voting rights, workers rights, women's rights, LGBT rights, and rights for people with disabilities ". That is what the Congress Party in India has tried to be for the past 68 years, resulting in massive corruption, weak security and increasing poverty. Donald Trump seems set to win the primary in Indiana today which will make him odds-on favorite to become the Republican candidate for president. It is accepted wisdom that Clinton will beat Trump easily in November's election, but will she? Trump is hated by some Republicans because he is not right wing enough, such that some have accused him of being a secret agent of the Democrats. " Maybe Donald negotiated a deal with his buddy Hillary Clinton," tweeted Jeb Bush in December. If that is so surely Trump has a greater chance of capturing the center and increasing his appeal to Democratic voters who do not like Clinton. Clinton's challenger, Bernie Sanders claims to be a socialist, which makes him very popular with young people. He knows that he will not succeed against Clinton but is determined to continue fighting till the Democratic convention to make his demands of greater taxes on the rich and more protection for domestic business part of the manifesto. Therein lies the problem for Clinton. Sanders is pulling her far to the left which may make it difficult for her to claim the center. " Her commanding rationale is what it's always been: 'It's my time and the country is ready for a female president, and it ought to be me'. And a combination of running for Bill Clinton and Barack Obama's third terms. That in itself gives you a messaging headache, because those were two different presidencies and two different Democratic parties...," said a Republican pollster. Clinton is disliked by 52% while Trump is disliked by over 60% of voters. What does it matter to us in India who among these two unpopular candidate wins? Bill Clinton imposed sanctions on India after nuclear tests in 1998 while Obama definitely had an understanding with Pakistan to supply sophisticated weapons to its army in return for the killing of Osama bin Laden. She was Secretary of State when Obama illegally bombed Libya, resulting in a failed state. With Clinton we will get a hostile president, at least Trump will be entertaining.

Can we grow amidst all this uncertainty?

Since the Great Recession, starting in 2008, economics has become the most important subject on earth. For us in India economic growth is absolutely essential to provide jobs with 68,992 turning 25 years old everyday, which is 2.1 million every month. A report says that only 7% of graduates of business schools are fit to be employed, because the quality of education is so poor. Banks, finance companies and maybe even the Life Insurance Corporation of India are sitting on huge bad loans. If the economy grows fast companies will make more profits, which will allow them to pay off the loans, and invest in new projects, creating more jobs. Banks will start lending again once they have cleared up their books. Trouble is that global trade is still weak which maybe why India's exports keep falling. But economics is not just about numbers and theories. It is also about perception. If people are optimistic about the future they will spend more, which will increase sales and lead to more jobs. If, on the other hand, people are gloomy about future growth they will spend less and save more. Which would not be such a bad thing except that in India people will probably buy more gold, to hedge against inflation and the fall in the value of the rupee against the dollar. Some think that the US economy is in an ideal state, what is known as a Goldilocks economy. Growth will be between 2-3%, unemployment will be down and inflation rate will be just right, allowing the Federal Reserve to increase rates gently. While others think that Obama has completely destroyed the economy. Apparently businesses are unable to pay their creditors, they are borrowing to pay employees and using credit cards to pay taxes. That sounds devastating. Politicians have elections to win so they will go with what the majority of people want, even if it will be harmful in the long run. In the US, Democrats and Republicans are almost equally balanced because most of the economy is in private hands and the government does not run any business. In India, the vast majority of people want handouts, which bankrupts the state, because revenue is chronically less than expenditure. Punjab, once the richest state in India, is having to borrow from the Reserve Bank's temporary borrowing facility to keep functioning. Scientists are now concentrating on behavioural economics to work out why humans behave the way they do. They are realising that textbook theories cannot explain real life situations. Thousands of years ago Paris made a series of wrong choices which resulted in the destruction of Troy and to his own death. Self interest and short term gains still tempt people and governments. Therefore, low growth is going to be the norm. We will just have to adjust.