Kerala’s Co-operative banking system in crisis post demonitization

Kerala finance minister Dr TM Thomas Issac describes co-operative banks as the lifeline of Kerala economy and he is right. But with the recent turn of events, these banks stare at bleak future and will indeed bear the biggest brunt of demonitization.

The quantum of deposits in the cooperative banks has always been baffling because the 2012 credit survey showed a high level of indebtedness by people in rural areas. If the people in rural areas are in such debt, how can the banks, which serve the same areas, have so much in cash? Obviously, the inference is that the deposits are not by poor people, but by those with a lot of cash. Nobody, other than the banks, know the details of these deposits. No source of income is asked, no TDS filed, no PAN required and hence no reporting to the Income Tax Department. The interest that accrues from these accounts are also tax-free. Some, therefore call this the Swiss Banks of Kerala. There is certainly some merit in the argument that it’s a great mechanism for the rural moneybags to evade tax unless they come under the lens of the RBI.

Co-operative banks in Kerala enjoy a rich legacy; they provided credit for farmers since the 1950s and 1960s, years before commercial banks found a foothold in the state. With a customer base of more than 10 million, the four-tier banking system is one of the largest in the country. It has 20 state co-operative banks, 60 urban co-opeartive banks, 784 district co-operative banks and 1,611 primary co-operative banks under its umbrella. The primary banks have more than 2,500 branches. The state, urban and district banks follow the Reserve Bank of India (RBI)’s guidelines, while the primary banks come under the district banks and follow the directives of the Registrar of cooperative societies. Primary banks account for 80% of the estimated 1.27 lakh crore deposits. Primary cooperative banks deposit money with the RBI-monitored district banks.

The crisis in co-operative banking system began almost a week after Prime Minister Narendra Modi’s surprise announcement that made 1000 and 500 rupee banknotes illegal tender. On November 14, the RBI stopped primary co-operative banks and district co-operative banks from accepting and exchanging the demonetised banknotes.In the interim period that had passed, between November 9 and 14, Rs 280 crore worth of old notes had been collected as deposits from account holders, though banks did not give out new notes. These deposits are believed to have been registered as pre-dated fixed deposits.

It is believed that money-laundering suspicions forced the RBI to impose curbs on these financial transactions. The apex bank has not given any specific reasons for the decision so far, but its order paralysed the primary co-operatives. While the district banks are issuing new currency, primary banks can now neither accept scrapped notes nor issue new ones. They just have to do a balancing act with a meagre amount of Rs 24,000, provided by the district banks every week.

At the core of the current crisis lies the issue of transparency. It is alleged that primary co-operatives do not follow the KYC (Know Your Customer) process, thus making it easy to stash black money in benami accounts, i.e., accounts whose beneficiary is not the account holder on record. Successive state governments have objected to the RBI’s attempt to bring primary co-operatives under its ambit and make the system more transparent.

Both LDF and UDF state goverments have hugely contributed to the current predicament of these banks. They have always resisted move to make the system transparent obviously due to political reasons. And it is amusing to notice that both LDF and UDF hand in hand are now running from pillar to post for relief.

A task force set up for the revival of rural co-operatives in 2004, chaired by A Vaidyanathan, Emeritus Professor at Madras Institute of Development Studies, had suggested that “State governments need to make legislative amendments to enable the RBI to exercise its regulatory powers under the Banking Regulation Act directly, and not through the Registrar of Cooperative Societies (RCS), if the cooperative banks are to be regulated effectively”. It further noted: “The state governments should enter into an appropriate memorandum of understanding (MoU), agreeing to desist from interfering directly or indirectly in the management of the finances of these banks”.
Successive state governments have brushed these recommendations under the carpet and never acted on them.

The issue has taken a political turn with BJP state general secretary, K Surendran, alleging that the ruling Communist Party of India (Marxist) and the principal opposition Congress party stashed illegal money in cooperative banks, and this is why they are afraid of RBI intervention.

In a letter to Jaitley, he said that close to Rs 30,000 crore of black money had been deposited in cooperative banks in the state without paying income tax. “The depositors include politicians, real estate mafias, hawala dealers and terrorists. It will be for the benefit of the country if these deposits are verified and necessary action is taken,” he wrote. 

With the Centre adopting a tough stand on unaccounted black money, observers believe that the primary co-operative banks have to fall in line and commit themselves to follow RBI guidelines, if they wish to resume banking services.

However even if the regulations are eased these banks may face further issues. Firstly a potential exodus of investors to private and nationalised banks could wreak havoc. With a meagre Rs 40,000 crores currently in hand and an estimated Rs 80,000 crores currently in the market as loans, these banks will not be able to return the Rs 1.27 lakh crores deposits they have accumulated.

As for BJP, it is a political win. Not only did they choke the money flow of Congress led UDF and LDF in Kerala, they have also effectively managed to destroy the co-operative sectors controlled by these two alliances.

Kerala elections 2016 and the state's economic outlook

The fourteenth legislative assembly elections is on its way to elect  members of the 140 constituencies in Kerala.  In the past elections, with out fail we have seen the political bias of the people of Kerala swinging  between the  Congress led UDF and the Communist led LDF. So this year if we go by the past trend and supported by the plethora of media result predictions,  LDF is likely to rule the state. It is widely predicted that the BJP will create history and may open an account for the first time in Kerala.

This article is not an attempt to go into the merit of electing any particular front, rather it focuses on the current state of affairs of Kerala which lags way behind other states in India and how to make economic progress going forward.

Kerala is known around the world for its beautiful green landscapes, sandy beaches, and sublime backwaters. Kerala is different from any other state of India with comparatively fewer people below poverty line, and a very high human development index. That is not all, though. Kerala has the lowest infant mortality in India, highest life expectancy, and lowest school dropout rate in the country. These are all qualities par with that of a developed country. 

Yet, Kerala has a laggard economy which depends heavily on tourism and the money from the Gulf, sent in by 2 million of Malayalis who work abroad. Lack of job opportunities is a huge concern in the state. There is not much of a manufacturing base to this state thanks to the militant labor unions supported by political parties. So job opportunities in Kerala are far lesser compared to other states like Maharashtra, Andhra Pradesh, Uttar Pradesh, West Bengal, Tripura and Delhi—where there is a lot more manufacturing competitiveness.

People from Kerala are forced to migrate because there are no jobs at home. “Manufacturing in Kerala is a sector which is almost dead. This state is too focused on the service industry, such as tourism.

Some analysts say that the problem starts from the fact that Kerala is an overpoliticized and “over-extended state”. They debate that radical unions, encouraged by successive communist governments, have acted as “pressure groups advancing particular vested interests”. Amartya Sen, Nobel laureate economist says Kerala has to “learn from the world”. Its famed model of development, which is still hyped as the most inclusive one, appears to have hit the buffers. Economists say that the Kerala model is grinding to a halt because the social and political groups having fulfilled their original agenda now have no new agendas. Society has lost its capacity to set collective goals.

Having said that the ASSOCHAM (Associated chambers of commerce and Industry of India) economic research bureau has recently made the following recommendations to propel the economic growth of Kerala which the politicians taking the office need pay attention and set their focus on.

Agro-based and Food Processing

The food processing industry has been recognized as a potential area for development of enterprises in the state. Food processing industry can play a significant role in the Kerala economy. It not only would contribute to the food requirements of the state it has an employment orientation too as it is highly labor intensive.

Textile and Garments

The textile industry undoubtedly is also one of the important segments of the State economy. The need of the hour is to further strengthen this industry, enabling it to fully exploit available opportunities in the domestic & export markets, and realize its full potential.

Rubber Industry

Rubber is another key industry providing employment opportunities for the farming community. The State must act as a facilitator towards their better growth prospects. A few possible ways to help them could be the following:

Given the nature of rubber plantations, institutional credit is scarcely available to rubber plantation sector. As rubber plantation requires large capital in the first year of plantation itself, the growers face lot of hardship in generating their own capital. Greater availability of finance will encourage more farmers to take up rubber plantation, who are otherwise not able to do so due to inability to self-finance the activity.

Rubber prices are subject to wild fluctuations owing to both domestic and international factors. The State government must try to provide some sort of stability to this.

Rubber plantation farmers often do not realize fair selling price. The middlemen marketing chains affect the profitability of small holders. Rising labor costs, volatile fertilizer prices are the two other severe challenges faced by rubber farmers. The price instability is driving the small farmers to indebtedness. Promoting farmer producer societies that function as self help group and empowers the farmers economically needs to be encouraged.

Tourism

Tourism sector plays significant role in the social-economic development of Kerala. As we have seen significant growth has been recorded in terms of tourist arrival and foreign exchange earning of the state. State should ensure upon providing adequate infrastructure facility and encourage private sector participation for the tourism sector development.

In conclusion, a stable and reliable government are key to achieving the above goals. If the incumbent government focuses on the development of the state their primary goal, the result will speak for itself and political stability can be assured. Policies that do work need to be cemented rather than overturned by the next government taking the office. The people of Kerala will thank them and keep them voting back to power.

Politicians need to realize that outdated ideologies or rather bankrupt ideologies have no place in the present scenario.

The great Indian beef politics

In a Hindu dominated country, appeasing the Hindu community is the only way to grab maximum vote banks. How do politicians go about it? Bring in the holy cows for Hindus believe that the cow is the embodiment of divine virtues like love, compassion, benevolence, tolerance and non-violence.

To gain political mileage state governments started implementing animal preservation acts as early as the 1950s. On October 26, 2005, the Supreme court of India, in a landmark judgement upheld the constitutional validity of anti-cow slaughter laws enacted by different state governments in India.

Today 24 out of 29 states in India have various regulations prohibiting slaughter of cow.  Kerala, West Bengal, Arunachal Pradesh, Mizoram, Meghalaya, Nagaland, Tripura and Sikkim are the states where there is no restrictions on cow slaughter. Why? Because majority of the people in these states eat beef for economic reasons. Politicians understood that prohibition of cow slaughter in these states will definitely back fire.

Here is a great example of how politics play a big role in deciding the food habits of the Indian people.

There is yet another economic angle to cow slaughter. Beef in India costs less than half the price of lamb or chicken. It is the preferred source of first-class protein for the poor, who constitute a majority of India's population. The absence of beef will raise the food bill for the underprivileged. 

Having said that law can not be taken by mobs in their own hands pretending to uphold the ban. If there are breaches, let the law take its own course. In a secular country there is no place for intolerance towards the sentiments of other religion.

Moving away from beef, before leaving India, one most important lesson the British taught the Indians and the Indians learned very well is ‘divide and rule’.

Everything that politician does is based on this concept. Politicians thrive on spreading hatred. They teach us to divide and hate for their political gains. Nowadays media also plays a big role in exaggerating trivial matters. Endless debates on petty issues are norms on national TV these days.

Come to think of it, aren’t we paying a big prize for upholding democracy? Can we ever envisage a time when we can all co-exist united rather than divided? Is democracy a hindrance for secularism given the size of the nation consist of various religion and caste? How can we not let the politicians take us for a ride?  These are all pertinent questions we must all ask ourselves.

When will we open our eyes to identify religious outfits camouflaged as political parties? When will we stop accepting political agendas forced upon ourselves?

Ignorance is the sole reason people fail to understand the motives of communal politics. It is high time we understand that democracy, secularism and ideologies don’t go hand in hand.

Sadly in India and similarly in several other countries, religious fundamentalism has spread like cancerous cells and we are at a point of no return. Various conflicts in the world are testimonial to this fact.

In a broader sense the truth is secularism is a myth. Don’t believe if any politicians or government state we are secular. They are a bunch of liars.

If today beef is off the menu, what will be off the menu tomorrow? Let us wait and watch.

Is the death penalty for drug traffickers justified?

 “The world has watched on as this theatre of cruelty played out, with this most tragic endings.

It did not have to come to this. The death penalty is never the answer”

Words from Amnesty international UK director Kate Allen pretty much sums up the sentiments of many concerning the execution of 8 drug convicts in Indonesia on 29^th April 2015.

Among the 8 who were executed by the firing squad, Andew Chan and Myuran Sukumaran (allegedly the masterminds of a drug ring) were part of the Bali 9, the name given to a group of 9 Australians who were convicted of smuggling 8.3 Kg of heroine valued at around 4.1 million US dollars from Indonesia to Australia. After serving nearly 10 years in Indonesian prison, the lives of these 2 young men ended tragically for a foolish decision they made in an attempt to make quick bucks.

Executions of drug smugglers are becoming more common. While Indonesia carried out only seven executions of drug traffickers between 1999 to 2014, since taking office six months ago, President Joko Widodo has overseen 14 executions as part of a fight against drug addiction at home (Never mind that some of the recently killed prisoners were smuggling drugs out of Indonesia, rather than into it).

Although 32 countries impose death penalty for drug smuggling, only 6 countries –China, Iran, Saudi Arabia, Vietnam, Malaysia and Singapore- routinely executes drug offenders and soon Indonesia is going to join the ranks of these countries following its recent executions.

Did these 8 and similarly several others deserve the death penalty? There is a scant research on whether the death penalty deters drug trafficking. Experts who have  considered the issue of the death penalty as a punishment for murder, and some cases drug offences, around the world, say there is not enough evidence to conclude that the death penalty deters.

Ironically the trade in narcotics has its upside for law enforcement. For poorly paid police, extracting bribes from tourists caught taking drugs is a big business. The incentives for them to crack down on drugs are therefore skewed. The threat of capital punishment exerts fear on drug offenders and therefore increases the bribes that can be extracted. Drug kingpings are seldom charged, let alone put to death. Rather it is the lowly traffickers and drug users who suffer the most grievous of punishments.

Abolishing the death penalty will go a long way to improving law enforcement and governance in Southeast Asia, thereby diminishing drug trafficking, which is the ultimate aim of governments that enforce the death penalty. If the region is serious about tackling drug trafficking it would be wise to abolish the death penalty.

Je Suis Charlie - Charlie Hebdo attack

Picture this. You are a second or third generation Muslim immigrant born and brought up in a country where freedom of expression has no boundaries. Being insensitive to your religion or its religious figures through media mean an insult to your belief which you will not tolerate. What do you do? How far would you go to fight against blasphemy similar to this? Would you vandalize the office of those media publications? Gun down the people behind the publication? Well it all depends on what moral values you hold and how far your religious faith takes you to.

What happened in Paris on 7^th January 2015 was tragic. Two Islamist gun men opened fire in the head office of Charlie Hebdo  (a French magazine known for its biting humor) killing twelve people for publishing a string of satirical cartoons about Islam and the Prophet Muhammed. The events following that incident of hostage taking and subsequent killing of the gun men made headlines across the world.

The cartoons mocking religion  published in Charlie Hebdo maybe considered nothing out of the ordinary in a country where freedom of expression far outweighs hurting religious sentiments. While moderates take it as a joke and move on, the extremists do not hold the same view. They take it far more seriously and the consequences can be fatal.

On 11^th January 2015 millions including world leaders from several countries gathered in Paris expressing solidarity towards the French people condemning the terrible killings. The crowd included Muslims and Jews among others. It is reassuring to hear from many of the French Muslims gathered in the rally that they do not support terrorism and that Islam is a religion of peace.

The muslims rallied condemning the attack reassures that extremist minorities do not represent the vast majority of peace loving Muslims. While it is difficult to understand why certain individuals choose violent methods to protest, the question is, has Charlie Hebdo magazine gone too far with their freedom of expression in the form of cartoons making fun of Islam and similarly mocking other religion?  French foreign minister Laurent Fabier once asked of its cartoons, “Is it really sensible and intelligent to pour oil on the fire”.  Granted, no amount of blasphemy justifies taking someone’s life.

The question is who really is responsible or who is the mastermind behind the vicious attack at Charlie Hebdo? Were the two gun men who was involved in the attack merely pawns of a larger conspiracy? By and large that is most likely the case.

While we wait for the larger picture behind the attack to emerge, it is heartening to know that Egyptian president Abdel-Fattah al-Sisi has come forward with an ambitious call for reform in Islam.  Al-Sisi’s professed goal is to purge religion of extremist ideas of intolerance and violence that fuel several terrorist groups.

Some view the problem with Islam is that it has remained stuck in a time warp. Islam has remained a 7^th century faith. As one columnist puts it, all religious texts are as good or as bad as their interpretations and unfortunately it’s the most violent and abusive followers who are heard the most.

The millions who lined up in Paris with the message “Je Suis Charlie (I am Charlie)” supporting the freedom of expression by the Charlie Hebdo magazine may have made very little impact on the terrorists who are out there plotting the next vicious attack. A much more deeper analysis of the terrorist outfits, tracking and hunting down the masterminds behind the attack, and cutting down their arm supply chain are some of the actions required by the authorities with the support of all countries. That is the need of the hour.

2014 Year in review

As we say good bye to 2014, it is saddening to note that not a lot has changed from the previous years. Overall gloom across the world prevails, threat of terrorism looms larger and the world remains a chaotic place to live.

The year began with Ebola virus epidemic in West Africa infecting over 19000 people and killing over  7000 people. It was the year ruthless militant groups such as Boko Haram and ISIS came into prominence. In April Boko Haram abducted 276 girls and held hostage from a school in Nigeria whereas a Sunni militant group called the ISIS began an offensive through Northern Iraq aiming to capture the capital city of Baghdad and overthrow the Iraqi regime.  

The year ended with the most deadliest terrorist attack ever to have occured in Pakistan. In December seven members of the Tehrik-i-Taliban Pakistan (TTP) conducted a terrorist attack on the Army Public School in the Pakistani city of Peshawar killing 145 people, including 132 school children. TTP is said to be a merger of 13 groups to form a super terrorist group.

Militant groups such as Boko Haram and ISIS join the already existing militant outfits such as Al-Qaeda and the Taliban unleashing terror within their countries and beyond.  Pockets of terrorist outfits are mushrooming in various countries like spreading cancer cells. Countries that promoted terrorism are now paying a price as terrorism boomeranged on itself.

Former US Secretary of State Hillary Clinton had said while blasting a certain country’s support for terrorism…

“It’s like that old story—you can’t keep snakes in your backyard and expect them only to bite your neighbours. Eventually those snakes are going to turn on whoever has them in the backyard.”

The former first lady has very aptly put down the consequences of supporting terrorism.

Moving on from terrorism, 2014 also happend to be the year planes started missing mysteriously. The disappearance of Malaysia Airlines flight MH370 was one of the biggest shocks to the world in 2014. The flight vanished without leaving a trace on March 8, 2014, en route from Kuala Lumpur to Beijing. The mystery of the disappearance of MH370 as of this writing is yet to be identified. 

To add to the woes, in July Malaysian airlines met with another disaster. MH17 enroute from Amsterdam to Kuala Lumpur was shot down by rebels in Ukraine airspace killing all 298 passengers and crew.

Then came the Ice Bucket Challenge, sometimes called the ALS Ice Bucket Challenge, a bizarre activity involving dumping a bucket of ice water on someone's head to promote awareness of the disease amyotrophic lateral sclerosis (ALS) and encourage donations to research. It went viral on social media during July–August 2014. The challenge encourages nominated participants to be filmed having a bucket of ice water poured on their heads and then nominating others to do the same. A common stipulation is that nominated participants have 24 hours to comply or forfeit by way of a charitable financial donation.

Moving away from man made disasters, in the years ahead natural disasters remain a major concern. Chances of another earthquake triggering Tsunamis similar to the events occurred in Indonesia or Japan may not be too far ahead. According to a study Java, Sumatra the Indonesian islands remain to be one of the most dangerous earthquake prone places on earth and Istanbul, Turkey remains the top spot to hit a major earthquake.

On a lighter note, on the internet front while the world searched for celebrities such as Jennifer Lawrence and Kim Kardashian, the most searched person in India was Sunny Leone a former porn actress and currently a Bollywood actress pushing Prime minister Narendra Modi to the second place!

So there we go folks.

Let us hope the year 2015 will be a more prosperous and peaceful year.

Wishing one and all a Happy New Year 2015

Kerala heading for complete prohibition of alcohol - Is the total ban on booze a short-sighted view?

Kerala government has recently announced prohibition of alcohol in the state in a phased manner. 

It appears that the pseudo-Gandhians in the ruling government have not taken into account the consequences of this ban. Apparently it goes without saying that this unprecedented policy in Kerala is brought in to appease certain communities in the state and to keep the coalition government from falling apart. The motive for this drastic decision appears to be political rather than ideological.

Granted,  alcohol abuse is a menace in the society. As Kerala reels under alcoholism, domestic violence is on the rise and families are being torn apart. Bread winner’s hard earned money instead of being spent on worth while purposes is being immersed in liquor.

Is a total ban the solution? Perhaps not.

Tipplers are of 3 types. Those who enjoy an occasional drink to keep their spirits high after a long day of toil, those who drink on social occasions and the third category being the alcohol addicts. The ban is obviously targeted at this third category.

Total prohibition has not been really successful in states such as Gujarat. Alcohol is smuggled into Gujarat from its neighboring states -– Rajasthan to the north, Madhya Pradesh to the east, and Maharashtra to the south, and also from the small union territories of Daman, located in south Gujarat near Surat, and Diu, an island that lies off the Kathiawad peninsula.

Total prohibition mean ushering in a new underground industry – bootlegging – and a new source of income for the players in the establishment – enforcers, their political superintendents from it. Losses to the exchequer would mean gains to the private pockets.

Andhra Pradesh tried Prohibition between 1958 and 1969 and again from 1994 to 1997, but abandoned because of leakages and flows from across its borders.

Haryana’s flirtation with a dry policy lasted only two years from 1996 and was abandoned on grounds of loss of jobs in the liquor industry. Tamil Nadu’s affair with dry laws in place since 1952 lasted two decades. The later revenue gains by these states indicate the infatuation with liquor as a resource.

Kerala has always enjoyed the dubious distinction of being the highest per capita consumer of alcohol in the country.  The state monopoly over liquor sale became the prime reason for the popularity of bars.  Besides losing crores of rupees to the exchequer by the sale of liquor, the decision to ban liquor will have adverse effect on tourism although the primary reason to visit Kerala is not to drink.

Prohibition as a policy is high-minded idiocy. It promotes organised crime, illicit, unsafe hooch and corruption of the police. Having learnt this lesson, prohibition was withdrawn in the US in early 20th century.

With such short sighted view of our political leaders, let us welcome the era of spurious liquor to Kerala and let the Gujaratis (where total liquor ban is in place) show us the way to bootleg.

At this juncture it will be more suitable to call the UDF , “United Retarded front” instead of United Democratic Front.

The enlightened people of Kerala should rise up against the government's hypocrisy and demand a rational liquor policy that both encourages moderation and respects individual liberties. To drink or not should be a personal choice, provided it entails no public disorder.

Disclaimer: The author does not advocate consumption of alcohol but merely expressing the democratic right of individuals in a democratic country.

Malaysian Airlines MH17 crash - Gone too soon

It was a twelve hour flight from Amsterdam to Kuala lumpur. But it was cut short way too soon. Almost three hours into the flight, the ill fated flight MH17 disintegrated in mid air. Debris from the plane along with scores of bodies strewn all over the crash site. 298 precious lives were taken away. These innocent victims bore the brunt of a political conflict in Ukraine. 

As for Malaysian airlines, it was another shot in the arm.

MH17 has followed the highly controversial disappearance of Malaysia Airlines flight MH370 back in March. Malaysia Airlines flight MH370 was said to have disappeared from the sky in the early hours of Saturday, March 8th, 2014, subsequently over at 35,000 feet heading in a flight bound for Beijing. 

The tragic end to MH17, has had a fiery backdrop provided by other regions of the world as well, as Israel has engaged in a ground assault of Gaza, while Iraq has been wrought with manufactured terror for months, both of which are undoubtedly political factors contributing to the polarization of the MH17 incident.

As they say, “One man’s terrorist is another man’s freedom fighter”. This saying goes true for pro-Russian rebels in Ukraine, who is believed to have shot down MH17, Hamas in Palestine whom Israel is fighting against and ISIS in Iraq. It is sad indeed to notice that innocent men, women and children are being killed as a result of several such political conflicts.

Are the general public safe anywhere in the world? Far from it. An otherwise enjoyable bus ride, a train journey or a peaceful walk in the park could turn into a tragic end if terrorists plant a bomb in the vicinity. Why do they want to take the lives of innocent people? Is it a political revenge against a country of target? Or is it a tiny representation of an impending mayhem they can inflict into a civilized society?

As hatred brews, countries divide, innocent civilians are unnecessarily drawn into these conflicts, often used as human shields or their lives being taken away.

The 9/11 attack in the US killing several thousands of people still haunts us. Similarly several conflicts across the world continues to cause turmoil through out the world, be it in Syria, Egypt, Iraq or Afghanistan.

No part of the world is safe as terrorism spreads across the world in a manner one could never have imagined. Global population is directly or indirectly impacted. One could be hit by a truck loaded with bombs, be hit by an airplane loaded with fuel, be blown apart mid air on board an airplane or simply be shot at point blank range.

A weapon in the hands of a wrong person is a sure recipe for disaster. So does the manipulative actions of some individuals who wants to push an agenda and turn them against the world.They have done it in the past and will continue to do so in the future.  One can watch it only helplessly, that is only if you are lucky enough to be alive.

The outgoing prime minister Dr. Manmohan Singh's farewell letter to the world leaders

As he prepares to demit office,  prime minister  Manmohan Singh wrote farewell letters to leaders of various countries including US president Barrack Obama, former Chinese premier Wen Jiabao, and Russian Prime minister Vladimir Putin.

Here is a hilarious look at what he might have written to them.

Dear fellow leaders,

It is with mixed feelings  I am writing this letter to you as May 16^th 2014 marks my last day in the prime minister’s office of the largest democracy in the world, India.

I had  never aspired to be a prime minister. My strength always lies in economics. In 1991 Narasimha Raoji inducted me in the cabinet as finance minister to rescue India from a severe economic crisis. I was quite contented with my role then. In 2004 Soniaji unexpectedly relinquished the prime ministership, I became an accidental prime minister. Sanjay Baru even wrote a book by this title. Then everything went south. I had no idea what I was getting myself into. Little did I realize that I was a cover for the dramas about to unfold.

I have always been regarded as a man of clean background. Moreover I have been lauded “as a man of few words” . I took these as compliments. Then came the greatest shock in 2012, when Time magazine’s Asian edition cover remarked me as an “underachiever”. I have been accused as  a person “unwilling to stick his neck out”. Those remarks hurt to me to the core. My public image has been tarnished with my government having been accused of various corruption scandals for which I was a silent witness. I have been termed as a puppet of a powerful political family.

Friends,  my silences and unwillingness to project myself became more manifest in my second tenure and I would like you to know that I kept a low profile only because I didn’t want to rise above Soniaji.  

Looking back, I regret that I didn’t stand firm enough to fight corruption, didn’t stand opposed to micromanagement of Gandhi family for leadership was never my forte. I am extremely worried about the future course of my party which especially lacks leadership and a front runner for the prime ministership.

Finally, I can say this with confidence that there will never be a prime minister in India with such an elaborate list of paper qualifications that I possess.

I wish you all good luck.

Singh is King.

Is the upcoming Indian parliament election a game changer or a mockery of the democratic process?

The stage is set for the biggest democratic electoral process in the world where approximately 814.5 million Indians out of a population of over a billion people will exercise their democratic right in the coming months. According to the center for media studies the political parties are expected to spend 30,500 crores ($ 5 billion) in this election.  In addition this election will also cost the exchequer 3500 crores ($573 million). As you can see the cost of democracy is enormous.

While the political bigwigs Congress and BJP are in the lead, neither of them appear to achieve the majority to form the goverment. Which means that a coalition government will take oath once again with the support of regional parties. In return the plum offers these regional parties are likely to receive is another matter for debate.

It happens only in India. Little seems to have changed with major political parties continuing to partronize candidates with criminal records. Both Congress and BJP continue to give tickets to candidates with serious criminal records including murder.

A surprise entry in the upcoming parliament election is the AAP (Aam Atmi Party)  projected as the common man’s party.  Holding a broom which symbolizes a promise to clean up corruption deeply rooted in Indian politics, AAP appears to make their presence felt in the Indian politics under the leadership of Mr. Arvind Kejriwal.  A number of eminent people who have been fed up with the existing political parties now have a choice and a good reason to enter politics and make an impact.

While Narendra Modi of BJP is potentially the next Prime minister if BJP takes center stage with the support of National democratic alliance, it is debatable as to whether Modi can replicate across India the success he made in his home state Gujarat given the fact that a prime minister has limitation especially under a coalition government. In a coalition goverment it is hard to always please the allies as they remain a permanent pain in the neck. Being a hardliner, whether Modi will be able to please the allies through out his 5 years term is another matter of concern.

The curse of India is the countless regional parties who are opportunistic and tend to change their position in a split second if their demands are not met.  The writings are on the wall. The deep divide between regions inherent in our political system is clearly evident thanks to the various political parties. Whoever takes on the power to steer India has a huge challenge ahead.

What does it all mean to a billion population?  There are many questions to be answered. Will the new government be able to provide sustainable and inclusive (benefiting everyone across India without discrimination) growth? Will they be able to put control on inflation? Etc etc..

The biggest democratic electoral system has its own flaws.  People have very limited choice in terms of who they want to handover the power to. No matter which party comes to power, a corruption free India is a distant dream or will remain a mirage.

Well, don’t lose heart. If you are not happy with any of the projected candidates, the election commission has bestowed you with an unprecedented option to vote NOTA (None of the above).  Meaning that no candidate deserves my vote and in all likely hood many who are fed up with the existing political system will choose to go for that option. Post election, the upcoming parties like the AAP may very well capitalize the statistics of the NOTAs so that they can position themselves better to exploit the gaps going forward.  Is the option NOTA going to change anything for the winning candidate? Probably very little. The candidate who gets the highest vote still wins despite the significant drop in the candidate’s vote banks.

The fate of India and its biggest population are sealed even before the election. With no credible political parties in the race, you and I can do very little about it by the voting process. Isn't that frustrating? Well as depressing as it may sound, that doesn’t give much hope for the progress of India. Does it? God bless the Indians.

Arvind Kejriwal - Indian of the year 2013

Times of India has just announced Arvind Kejriwal Indian of the year 2013. NDTV had done so back in 2011 along with his mentor Anna Hazare. According to Times of India, in a country of 1.2 billion people choosing person of the year can be as tough as getting Manmohan Singh to smile. With his a year old Aam Aatmi Party (Common Man's party) who would have thought that he will dethrone Delhi's longest serving Chief Minister Sheila Dikshit. Well,  India do not have to worry about countries like Australia making fun of her unusual surname anymore.

Kejriwal's victory is an endorsement of the people to root out corruption at all levels. True democracy is about making right choices and elect the right person to take power. The common man wants change and the wind of change will sweep into other states as well if not immediately but over a period time. The wind of change is evident from the fact that a number of ex-BJP and ex-Congress politicians joining the aam aatmi party. Truly sticking to what he preaches Kejriwal has refused red beacons and Z-Security which is considered as a status symbol by many politicians.

Kejriwal is a risk taker. Risk taking seems part of his DNA. The story goes that when his father advised him to apply to all engineering colleges, he took the gamble of applying only to the prestigious IIT and he did get in. Similarly when he contested election he decided to face off with none other than Sheila Dikshit herself in the polls and the rest is history.

Aam Aatmi party has no legacy and no baggage of caste, religion and region. Hence fresh ideas and changes can be brought in with the same spirit as their fight against anti corruption. Some critics point out that while Kejriwal is good at motivating party workers, he isn't adept at working with other social groups and being part of a larger team. That he has firm belief in his own methods and style and sticks to them. That it is either his way or highway kind of approach. Only time will tell whether these traits are blockages to his' and his parties rise.

It is a long road for AAP to spread its wings towards other states and it is unlikely that AAP will make much impact in the next parliament election due in 2014. But the political flame AAP has lit in Delhi will have far reaching consequences in Indian politics and the future of India. Kejriwal  believes "change begins with small things". He has inspired many with his unrelenting approach of humbleness, firmness and his clean politics. Let us welcome the new revolution of change and hope that other political parties align their ways of working if not exactly the way AAP works, but very similar to its ways. If Kejriwal has been able to accomplish that much, then we can truly say that he has made an impact across all political parties. In the mean time for AAP, it is still a work in progress. Kejriwal and his party have a long way to go.

Kerala in a league of its own

In a highly significant political development, which could alter the contours of Kerala politics, the Nair Service Society (NSS) and the Sree Narayana Dharma Paripalana (SNDP) Yogam have decided to bury the hatchet and up the ante against the Congress-led United Front (UDF) Government in the state.

The hardening of the NSS and SNDP stance is a direct sequel to the Oommen Chandy government’s policy of unabashed minority appeasement and total surrender to the Indian Union Muslim League (IUML), the second largest constituent of the UDF, in policy matters.

The latest manifestation of their anger against the government  came in the Neyyattinkara by-election , which saw an astounding  five-fold increase in the vote share of the Bharatiya Janata Party (BJP) – from a mere 6000 odd votes in the 2011 state assembly elections to over 30,000 votes in the by-election. A clear mandate by the voters to the ruling government.

To put things in prespective a little background. Panakkad is an obscure village deep in the bowels of Malappuram, Kerala’s only Muslim-majority district. In September, Kerala state government will showcase 22 proposed projects here, totalling an investment of Rs 2,000 crores. Reason? Panakkad houses the most prominent spiritual leaders of Kerala’s Muslims and that is where the president of the Muslim league hails from.

League an ally in the ruling United Democratic Front(UDF)  who holds 20 seats in the Kerala assembly, and excercises almost total control over Kerala’s Muslims, the state’s second largest community with 25% of the population. Empowered by the community’s economic and demographic growth, the League has grown steadily in strength. Muslims are the largest beneficiaries of foreign remittances, that totalled Rs 50,000 crores in 2011 according to a study, sent by its two-million strong diaspora in the Gulf. According to the 2001 census, while Hindu and Christian populations showed a decline, by 1.48 per cent and 0.32 per cent respectively, the Muslim population went up by 1.7 per cent.

League has wrested several privileges from the present government: Five cabinet berths, free land in the Calicut University campus, special privileges for Muslim management schools, and Muslims recruited to raise awareness about little known minority scholarships in the community. Chief Minister Oommen Chandy has faced much flak from all around-including his own party-for succumbing to the League’s pressures. Keeping their differences apart, the Nair Service Society (NSS) which represents Kerala’s 14 per cent upper caste Nairs, and Sree Narayana Dharma Paripalana Yogam (SNDP), which represents the state’s largest Hindu block of 24 per cent of Other Backward Caste (OBC) Ezhavas, have decided to jointly fight this ‘appeasement’.

While NSS general secretary G. Sukumaran Nair and SNDP general secretary Vellappalli Natesan are up in arms against the government, many groups within Kerala’s prosperous Christian community are also peeved at what they say is a Muslim monopoly of privileges meant for both minorities.

There are critics in the league within Muslims too. New Muslim organisations such as Popular Front of India (PFI) and Jamaat-e-Eslami which the League calls “extremists”  are weaning young men from them and eroding their claim as the sole representative of Muslims.

But why is there a new consolidation on caste and religious lines? Many blame it on “appeasement” by political parties. Both Congress and Left now choose candidates by caste and religion. Many cites the growth of a “parasitic” middleclass, that shows all signs of modernity but has a feudal mindset.

Interestingly NSS and SNDP have always had differences about reservation. Both the organizations have vowed that they will not ally with BJP who could not find a foothold in the state. It is also worth noting that neither of the community had any legacy to claim for the development of the state. How many would recall, in order to enter politics the NSS briefly formed National Democratic Party in the1970s and not to be left out, in 1972 SNDP formed the Social Revolutionary Party. Sadly, neither parties could make an impact in the Kerala political front.

Many view that owing to contradictions within the communities, the consoldiation will soon collapse. Just as the moderate League and the militant PFI will not be together, Nairs and Ezhavas will fall out over reservations. Let us wait and watch.

IPL the Indian Paisa League

Is IPL the Indian Paisa League?

Barely two years ago, when Mukesh Ambani's Reliance Industries Ltd made the highest bid for an Indian Premier League franchise (Rs 441 crore for Mumbai), many termed it as a massive gamble on a risky concept. The IPL sure has come a long way in a short time, with the Sahara group recently bidding Rs 1,702 crore for Pune and a little known Rendezvous Sports backed by the State Minister for External Affairs Shashi Tharoor forking out Rs 1,533 crore for Kochi. These two bids, worth a total of about Rs 3,235 crore, add up to more than the Rs 2,853 crore collectively paid by the existing eight franchise owners in the first auction, on January 24, 2008. Talk about the power of IPL.

Little did we know that the addition of new franchisees would open a can of worms. Now the Tharoor-Modi row prominently appearing on every news media and TV channels, the focus is well off the foreign cheer leaders and the cricket field.

Who represents Rendezvous Sports?

Interestingly the only connection in the Kochi Franchise for a Malayalee is Vivek Venugopal, a builder from Kerala who holds 1% stake in the Franchise. However, it is learnt that the group also includes Anchor Switches, Rosy Blue Diamond, Mukesh Patel, and Ravi and Sanjay Gaikwad. Anchor Switches is a company from Gujarat and is owned by Mehul Shah. Rosy Blue Diamond is one of the world's largest diamond manufacturing companies. Dilip Mehta is the CEO of this company, which owns jewellery brand 'Orra'. Ravi and Sanjay Gaikwad are Mumbai-based businessmen. Sanjay Gaikwad is the CEO of UFO Moviez. Mukesh Patel is an education baron who runs technology, management and engineering institutions.

With big money involved in procuring an IPL franchise one wonders how the franchisees' recover their money. For the franchisees' the main source of revenue comes from selling broadcast rights. Apart from that other source of income include proceeds from selling merchandise, sponsorship and selling tickets. BCCI takes a cut of 20% of broadcast revenue and 40% of advertisement revenue.

Brand IPL is currently estimated to be worth $4.13 Billion. The football championship English Premier League is worth $12 Billion, but IPL has reached $4 Billion in less than 3 years and will soon catch up other sports like football and Formula 1.

Now let us look closely at the ongoing row between IPL Chairman Lalit Modi and the union minister Shashi Tharoor after the later negotiated the deal for Rendezvous Sports to procure the Kochi Franchise. What began as a juicy side-show to the IPL is now threatening to dwarf the tournament itself. The Lalit Modi-Shashi Tharoor spat turned ugly with the junior minister and his aide accusing Modi of‘‘breaching all propriety’’ in his efforts to discredit the Kochi franchisee.

The minister’s aide accused Modi of trying to buy out the consortium with an “offer” of $50 million, while Tharoor himself decried Modi’s ‘‘contemptible efforts’’ to ‘‘drag in matters of my personal life’ ’―a reference to his alleged romantic ties with Sunanda Pushkar, a Dubai-based socialite-businesswoman , who reportedly holds a ‘free equity’ stake in Rendezvous Sports worth Rs 69 crore.

As the plot rapidly thickened, Lalit Modi, currently under a gag order from BCCI, kept below the radar. However, his associates denied all the allegations.

Meanwhile, political parties too jumped into the fray. The BJP has demanded Tharoor’s sack for ‘‘ improper behaviour’’, while the Congress seemed interested in the drama but disinclined to get involved in it. The IPL governing council will meet in 10 days where Modi is expected to deny that he tried to muscle out Rendezvous to help other interested parties.

Would the Shashi Tharoor-Modi row affect the future prospect of IPL? If the dirty linen is washed in public it indeed seems possible. But what turn of events can ease the tension? Would getting Sunanda Pushkar out of the Rendezvous stake help? Or would it take turning over the ownership altogether to another aspiring franchisee? Whatever may be the case, the stakes are high for Shashi Tharoor to clear his name and Congress high command would not go easy on the tweeting minister this time around.

Rajesh Kumar

The traits of a great politician

Who would make an ideal politician? While there may be differing views, I am sure we could all agree on some common traits that make up a great politician.
 

Winston Churchill said that a politician needs the ability to foretell what is going to happen tomorrow, next week, next month, and next year: and to have the ability afterwards to explain why it didn't happen.

Good politicians should work for the nation. The nation's interest must be kept paramount while taking decisions and not for promoting self or party image. Politicians must not indulge in appeasement policies for influencing the electorates to cast their votes in exchange for favors. Nepotism and favoritism must be banished and he/she should shed fundamentalism in religious practices.

Politicians should adopt human religion. They should visit their constituency regularly and spread the message of tolerance towards believers of other religions.

Politicians should work hard for improving the system of governance. 

Successful politicians everywhere know that getting results does not depend on managing the process. Success depends on leading the people who elect them to be their leader. Good politicians will not just learn these principles but actually apply them by practicing these principles. They should know what makes their electorate tick, and how to use human behavior techniques to inspire, motivate and be their leader by setting and achieving goals.

A good politician needs humility. The politician with a monstrous ego is an offensive and objectionable creature. The egotist tends to forget that they are elected to act on behalf of the public.

Charismatic: A very rare trait that we see in today's politicians. The inclusion of charisma on this list is not intended to suggest that someone who lacks charisma is incapable of being a good politician. We have all experienced or encountered an individual who insists upon certain "rules" being followed no matter how silly, absurd or nonsensical they may be. The practical politician looks for solutions and isn't beholden to tradition or "rules" that defy common sense.

Strong/Tough/Fearless: A politician should not be afraid to stand up for what is right even though it may be unpopular. A reputation for weakness will not serve the public well. Sometimes you just have to be willing to fight.

The picture that emerges for our model politician sounds reassuring. Today the electorates are confused and often misled. Along the lines of religion, caste or language, divide and rule has become the norm.  Our politicians are well aware of this and don't fail to take advantage of that.

At the end of the day what the common man expect from their politicians is an assurance that they would make sincere efforts to become good and deliver what they have promised.