Can people understand reforms

When the ordinary citizen is able to understand that diesel will much much cost more, if he buys without subsidy, and that price of a cylinder of cooking gas is also subsidised, then the uproar would subside. But the anger generated (that the consumer has to pay more for the same items) is used by the political elite as political capital. This is a drama played and replayed. People have to learn to think for themselves and not depend on interpretations of the political class. What we need is more education on statistics, and more awareness. Beware of brainwashing done by the power seekers, they are trying to frighten you.So people awaken and see reality.Before starting a fight, see who is your enemy or what you are fighting against. Your cause for anger is the state of the world economy.You are upset about the state of the world economy and you cannot fight with the reforms which are trying to shield you.You must resist mob tendency, and stop following a herdsman. Do not believe in what you are made to listen to. Follow your reasoning ability, do not follow false leaders.  

New clarifications on allotment of natural resources

Supreme court has today clarified that all allocations of natural resources need not be distributed by auction. If the allocation involves corporate profit, then it should generate good revenue for the government; so auction will be used in these cases. But those cases where public good or welfare for the poor is involved, then we can allot without auction, on case to case basis. For example , if land is acquired for an orphanage, then we should not go for the highest bidder. Government will not try to draw revenue from that allocation, so no auction is needed.We should consider the public good and view it as a better allocation. But for other natural resources like coal or oil, state should remember that it has trusteeship over the resources and that the resources belong to the people of India. So revenue generated must be used for the people. But if a coal firm offers very very cheap electricity for the people, it should be given free coal blocks. Basically, there should be transparency in allocation, there should be equality in looking at those seeking allotment, there should be some public good in distribution of natural resources. If a natural resource is given for commercial purpose, then revenue from it should be maximum. Keeping auction could be economically illogical because often 'explortion and exploitation' are grouped together for oil, minerals etc.Since the cost for exploring is high, there should be some concession and lesser revenue must be collected.There is risk of not finding any oil after intensive exploration.
At many times, it is noted that auction is not a fool-proof method of allocation. Auction could be manipulated through cartelization. It is highly suitable to use e-auction which allow bids and at the same time provide profit to firms, so that high quality affordable services are available to the people. With this clarification by the Supreme Court,  we have a good structured policy for government to follow for allocation and pricing of scarce resources like coal, petroleum, natural gas, spectrum, forests, land and water which can be better distributed by e-auction. It can be quick and easy. E-auction is most favourable as offering an economic choice for disposal of resources. But it is no compulsory and is not a constitutional mandate. If questioned, courts have to analyse its legal validity. If a policy or law is unfair, then as per Article 14 of our Constitution, it can be striked down.Now land acquisition can be done speedily as there is option for acquire without auction.
But this has brought back the same definition problems--what is a "public good" A transport firm can make a highway charging toll--this is for public good. But when it starts charging exorbitant toll, and makes huge profits, it cannot be interpreted as "public good".
Whenever a policy is made there is some beneficiaries and some losers. In the previous ruling, there were benefits for the land owners,and no benefits to the industrialists. But now the policy favours industrialists. There is reason to believe that the policy making is done so that our people (farmers or owners of land) will not be the beneficiaries. And that the rich industrialists will certainly benefit.

Our people living in cities

To solve problems of the people of India, to conquer illiteracy, erase poverty, overcome gender inequality, eradicate child labour, we must know how the Indian people live. When we think about “how India works” we see that it is the people, the hopes that they have that keeps the country moving on. People work hard and sustain themselves and their families. These bonds and relationships they have in their cultural set up keeps them connected. They have each other to keep themselves going. They show each other the pathways to the realisation of their basic needs—access to jobs, access to education, access to loans, access to housing facilities and so on. This inter-dependency leads to clustering of people and thus villages came about. When specialists were needed like iron smiths, gold smiths, carpenters, masons, shop keepers, vaidhs (doctors), bigger villages came about. Then towns formed may be on banks of rivers or around specialisations (religious specialisation lead to the making of Varanasi). With Industrialisation much later on, towns became cities. We have municipalities and townships, which are committed to look after the towns and cities. However they may try, they are not able to meet the needs of the people. All cities have poor waste management systems. Piped water for drinking is not provided to all. There is a steady flow of migration from rural to urban India; and we cannot cope with the problems related to this migration. There are areas which have become slums—no water connections, no electricity no sewage system. But civic authorities spend well on roads, sports complexes, swimming pools etc. For the very poor, there is no place to live, may be pavements, if allowed. Some minimum living space must be provided to the new arrivals to the cities. Since pitching tents is not allowed, a shed could be made for them.These people are illiterate and cannot ask for their rights. Among the citizens of city are street children, destitute persons, construction labourers, domestic servants, daily wage earners, coolies, small traders, rickshaw pullers, drivers etc. They have dire needs (no place to stay) and they are not heard. We classify the Indian people in terms of gender group or age group or we differentiate them on basis of urban or rural, in order to deal with their problems. But this is not the right way to visualise the situation. Only real classification is rich and poor. Having access to civic amenities and not having basic amenities differentiates a class of neglected people. Poverty has to be addressed first. Only after solving that we can look at the other problems of the people. Only after that we can look at urbanism and how to best resolve stressful life in cities.
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The Educated Country

The country with highest number of graduates, the country with the largest number of professionals, the country with largest number of educated citizens is India. Then,how can we still be backward? The India’s bureaucrats have never bothered to work after they have secured their positions or jobs. India’s teachers are not committed to teaching. India’s doctors do not bother about our people’s health. India’s politicians are not interested in progress for their people(they are interested in accumualting wealth). And India’s industrialists are not bothered about the state of their workers. Then how can India develop? We have what it takes for our betterment (we have education), but we do not commit ourselves to our work. We did not bother to think that this country had educated us; that this country had provided us with good food grains; we must remember that this country gave us the right environment for our growth. What did we do for the country? We procrastinated and did not show integrity; we did not think and we did not understand problems of others. So when the cost of food price is high and when the fuel cost is also very very high and when we cannot make any savings, we must understand that we had not contributed to the growth of our country. Now we know what is wrong with us.
We must think about others and their exigencies. May be now we can feel how the fish folks feel when their river is dammed and how they had lost their livelihoods; and may be we can understand how the tribals(simple people) feel when their land is taken away from them for making big factories; may be we can feel how people feel when immmigrants had taken over their lands; may be we can understand how ruthless dairy factories pay meagre sums for milk provided by very poor homesteads; may be we can understand how people feel when a nuclear plant is installed in their lands against their wishes. They feel helpless. May be we can manage little increase in price rise of diesel and cut down our expenditures. We should work more than what we are paid for, only then India will grow. We have to perform our role well.

How to pacify the people

On Friday night our Nation's leader had made a live telecast of speech to the common man of the Indian Nation (similar to fireside chats of American Presidents). On Saturday morning he had made a speech to the industrialists on how important investment is in the growth of the Indian economy. Is he in the side of the average Indian who is struggling to meet his daily expenses or is he going to help the industrialists invest? He is trying to be close to both.Because both have to be pacified.Election is due in two years. Before that he has to prove his worth. More reforms are coming!  
Now he cannot be supported by any other party. The rest of the term, he is heading a minority government. He is going to be responsible entirely for the resultant state of the economy. He will make proper reforms. He cannot play "blame game" anymore. He can survive the minority status because the other parties have mutual distrust and disagreement with each other goals.
Those somersaulting politicians have brought ruin to themselves in supporting opposite ideals and making enemies with one and all. This is an advantage to our leader and his party.
By repeating the disruptive behaviour in the Monsoon Session of Parliament, no reforms could be made. This shows that they were not interesting in governing, they were interested in making noises and were always criticising. It was incorrigible, to see our elected elite behave this way.Now any reform is welcome, supporting the people or supporting the industrialists. It is better than inaction and misbehaviour----tripping and thereby stagnating our government.  

Fast Forward on Economic Reforms

Even if there were protests, and even if some political parties resign, there will not be a rollback on proposed economic reforms. Government has to cope with current account deficits and fiscal deficits. It has to take measures which should generate wealth and it has to cut down expenditures. The sluggish economy has to speed up. And these reforms justify the measures taken, will they help?
The cost that the consumer has to pay is only Rs. 5, more than usual.The price of diesel has to raised by Rs. 17 per litre, to keep up with the international market. Government has been subsidising diesel; this was done so that poor farmers can buy diesel for their tractors and motors(for pumping water)But rich people started buying luxury cars which used diesel. Everyone wanted to use the resource that government had provided. The consumption of diesel rose, so so high that government could no longer subsidise it, now. The citizenry was irresponsible in its usage of a valuable resource which was meant for the poor. Now every one has to pay for it dearly.
FDI(Foreign Direct Investment) must be understood better. Already we have chain stores, but now we will have muti-brand retails. With competition, may be the cost will reduce. On the whole, coming of foreign stores means loss for the business people here. If have benefit of the country in mind, then, we can make a deal with the chain stores to develop the Indian market for a specific period(let us say for 10 years). After this period, the retails will have to pull out of India. This deal will make sure that Foreign Investment is used only for development and they cannot "own" anything in India. If these specifications are not made, India would suffer in future and there will be "no way out" of exploitation that will ensue.
It is foolish to say that coming of FDI will generate jobs.The idea of chain stores is reduce manpower increase "machine power" as part of modernization. To gain popularity political elite say that the coming of chain stores will generate more employment, as more jobs is what we want.
We just want to survive in the sea of changes that economic condition of the world market. So all sorts of measures have been proposed. There are more changes like CRR rate cuts by 25bps. New proposal is that government is going to sell stakes in four PSU(Public Sector Undertaking) NALCO,MMTC,Hindustan Copper and Oil India Limited. But the political climate will affect these reforms greatly. For these to succeed, government has to follow-up in the dis-investment plan for a long long time. But if the political party in power changes, this will affect the policy adversely.Before the dis-investment process can become successful, the government would have changed. So successful reforms in our economy is depended on how we wisely we select our political representatives; and how consistently we select.
 

When people oppose economic reforms

New political moves have isolated some politicians. When government would not rollback the diesel price rise; when FDI (Foreign Direct Investment) is here to stay, a roll back was impossible. But few states had proposed that the number of subsidized cooking gas cylinders would be increased, as a part of negotiations (bargaining). Still, adamant to her own beliefs, the regional party’s leader had pulled out of the coalition government. This has given opportunities for other smaller parties to come to the forefront. The adamant politician has brought ruin to her own state; the new increased number of hired personnel of the government will not be getting salaries. And all plans would become pointless now. Being too emotional in representing the needs of the common man, the Politician had gone too far and had resigned. Now her supporters, her people, are completely sunk. Who will speak for them now? If she “cries wolf” and resigns for small changes, what will she do when big problems befall the people? Now big problems have come.

People chose another way to protest against the price rise. Now we have “Bharat Bhandh” when all those protesting shut down their shops and establishments to revolt against the government’s actions. Other parties joined together and went on a March at the capital(New Delhi). They want that the pressure on the people be reduced. They vehemently feel that diesel price should not be raised as much. That means reforms cannot  take place now. Are not these reforms meant to lift the economy up therefore relieve the people? This event came and went; it has not resulted in any change in government’s policies. Now what is next?People's will or reforms?