Showing posts with label Economics. Show all posts
Showing posts with label Economics. Show all posts

Wednesday, 9 November 2016

Chaiwallahs are collateral damage in a Chaiwallah’s war

As soon as PM Narendra Modi announced that currency notes in the denomination of Rs 500 and Rs 1,000 would be demonetised immediately, people ran to the nearest ATMs and began withdrawing Rs 100 denomination notes. And then… the ATMs ran out of money.

Today, as I was going about gauging the mood around town, I stopped for tea at my usual kitli. After the usual pleasantries with my usual chaiwallah, I took my cup of tea and sat down with my phone to check for updates on the US election. Donald Trump had won. OK, no comments.

But then I saw something closer to home. Something I am going to call the ‘short-term collateral damage of demonetisation of notes’.

Photo Credit: Joel George

The chaiwallah was arguing with his stockist. Since this was a small kitli at the corner of residential block, there wasn’t much traffic here and there are lesser customers. Hence, cigarette sales also aren’t that great. So the stockist gave the chaiwallah two boxes of cigarettes and chaiwallah handed over an Rs 500 denomination note to pay for it.

However, the stockist refused to take it, saying that he would not accept anything except Rs 100 notes. Now, the chaiwallah only had Rs 500 notes since he got the news only this morning and by that time, all the ATMs in the area were already out of cash and customers were unwilling to exchange his notes for him.

After a lot of haggling, the stockist came up with a solution. He would give the chaiwallah the boxes on credit instead of either taking the Rs 500 note or not selling the cigarettes to him at all. The chaiwallah, out of options, agreed and put his Rs 500 note back into his pocket with a sigh.

He then turned to me and said, “What have we poor people done? Why should we have to suffer for all the black money these businessmen and politicians have accumulated? We hardly have enough money to run our business and our house.”


And thus, the chaiwallah remains the unwilling and helpless collateral damage in this nationwide war on black money initiated by one of his own.

Saturday, 15 August 2015

With Great Power comes Great Responsibility: India & the UNSC

It’s been 69 years since India became an Independent nation. The leaders that formed the government then thought that the time was right for India to govern itself. The government today believes that India is ready to be part of a committee that aims to keep the world secure, the United Nations Security Council (UNSC). To this end, they have been looking for support from every quarter with the constant spate of foreign visits Prime Minister Narendra Modi has already made to several nations since his government came to power in 2014.

They feel the time is right for India to take its rightful place, seeing as it considers itself a leader in Asia. It is looked upon by various South Asian nations as a big brother, an insurance policy of some kind, against the threat that an aggressive China poses in the region.



For & Against India’s seat

But India has apparently failed in impressing contemporary world leaders who have opposed India’s most recent bid to restructure the UNSC like its reluctant friend US President Barrack Obama and its long-time ally Russian President Vladimir Putin. The third nation, China, in spite making tall claims of friendship during President Xi Jinping’s diplomatic visit, is still a regional rival along with another claimant to a permanent seat, Japan. However, the other two permanent members, France, under President Francois Hollande and the United Kingdom, under Prime Minister David Cameron, support India’s bid.


Other Contenders

Along with India, the other G-4 nations, comprising of Germany, Japan, and Brazil have all longed for a permanent seat in the UNSC. Germany, because of its GDP, which is the fourth largest in the world, Japan, because of its regional (albeit muted) power status in Asia, and Brazil, by virtue of being the only regional power in South America.


Shortcomings

Although India is slated to be the most populous country in the world by 2022, although its economy is great as an emerging market, although it has a stable democratic structure and although it is a responsible nuclear state, India hasn’t exactly been doing what one would expect members of a ‘security council’ to do.

  • India hasn’t sent help to the coalition fighting terrorist groups outside its borders
  • India is not involved in helping bring back a democratic government in Yemen
  • India didn’t until very recently stand up for or attempt to mediate the conflict brewing in the South China Sea.
  • India hasn’t spoken up on human rights issues in the Israel-Palestine conflict.
  • India stood passively by in the Iran nuclear deal.
  • India hasn’t done anything for the Rohingya refugees from Myanmar.

When you take a look at all these conflicts that India has deliberately avoided, stayed out of, skirted or just verbally condemned, it is hard to imagine that this country is a regional power which will do anything at all, even if it does get a permanent seat at the UNSC.


Favourable Statistic

However, there is one thing that certainly goes in India’s favour and that is the number of personnel it has sent to the United Nations Peacekeeping Force. India has sent 8,112 people and is third in terms of this contribution, Bangladesh and Pakistan holding the first and second positions respectively. The permanent members come nowhere close to matching these numbers.


Unfortunate Reality


However, merely these numbers cannot hide the fact that India has in fact chosen neutrality and made the decision to stay aloof from world conflicts even in this age of co-operation. Although India now contests that it just needs a two-third majority in the UN General Assembly to get a seat, the problem is that India might fall short on its claim to be able to handle that much power without taking on responsibility.

Saturday, 16 May 2015

I Founded my own Country!

“Give me Liberty, Give me Land, Give me Liberland!”

This is what Vit Jedlicka, the founder of a 7 sq km piece of land on the Danube River probably shouted at politicians from both Serbia and Croatia when they told him he couldn’t just go to an unclaimed piece of land and set up his own damn country. Why he asks? Because it’s apparently nuts!

Well, ask Jedlicka and his merry band of Liberlanders? Liberians? Liberlandians? Liberties? If they give a damn about what anyone says about their state of mind as they hoist their flag, sing their new national anthem and being totally awesome by giving the finger to their collective governments who made the mistake of allowing dual citizenship because they thought their citizens were responsible adults. Yeah, these people come from all parts of the world. I wanted to go to but it seems India does not trust its people like the Turkish government does.

There are a surprising number of self-styled Presidents and Kings and Dukes who’ve tried in the past and keep trying in the present to establish their own nations inside other nations, on no man’s land like Jedlicka did, by encroaching upon the sovereignty of more than one nation or in the middle of the ocean. Seriously!

Not Featured here: An Emperor.
Image Courtesy: Republic of Molossia.

These people even held a United Nations-like conference in April this year so that they could get to know each other, discuss their problems and know why they thought establishing their own country was a good idea in the first place. One guy is trying to get his own country near Egypt because he wants his daughter to be a real Princess. Really? And guess what all you little, less fortunate kids of the world; Disney is even making a movie on her! Go cry.

The establishment of such micro-nations, as they have been termed, is a growing trend even if it’s not a new one. The thought-provoking thing here is why all these people want their own countries?

 Is it because they’re tired of living in one country?
Happens to us all

 Is it because they don’t like the laws?
Well, nobody does

Is it because they’re trying to bring a revolution?
That makes sense

Do they want their children to be Disney Princesses?
There is something wrong with people

Do they want more international chaos than what already exists?
Peace is so boring

Do they want an army to chase them back home and then get ‘exiled’ status?
Definition of FUN!

Do they actually have a reason at all?
The Mystery!

Although all these Highnesses and Majesties and Honourables don’t have one particular answer to this question, it seems like governments who have problems with these people will sooner or later stop laughing at them and realize they should have stopped them a long time back… when they could. But by then:


WELCOME TO THE NEW WORLD ORDER

Wednesday, 13 May 2015

5 ways Modi is helping India with his manic Wanderlust

Narendra Modi has gone on 16 foreign visits to 15 countries (visiting Nepal twice) since he took office in 2014. Out of these, five have been to summits which include BRICS, UNGA, ASEAN, G20 and SAARC, while the others have been state visits.



There has been criticism as well as praise for the Prime Minister’s travels abroad for bilateral, multilateral and summit meetings with heads of state and fellow heads of governments. Mr Modi has been on a whirlwind tour of friendly nations and his government has played an important part in helping other nations with their problems.

Helping Maldives with its water crises, Nepal with earthquake relief and a half-dozen more nations with evacuation of their citizens from war-torn Yemen has been a show of solidarity, strength and a sign of deepening ties with India’s neighbours by a PM whose symbolism is not only hard, but impossible to miss.

In a series of brilliantly executed foreign policy measures that has seen even the Union Minister for External Affairs noticeably sidelined, the PM has created such immense opportunities for India that even the most ardent of his critics must admit that Indian leadership of this kind on the international stage hasn’t been seen perhaps since the time of Jawaharlal Nehru, and that’s saying something.



Here are the FIVE reasons why a PM on the go has helped India stabilize and improve its image abroad:

1.       Marching Westwards

Mr Modi’s visits to the ‘Western’ nations, including the United States, Germany, France and Canada has emphasised on a possible break from Russia’s influence and a march towards the West, an improvement on many levels since India would certainly not want to be seen snuggling with an international aggressor. However, although India did support Russia’s anti-gay legislation at the UN, the trend of this government’s foreign policy is definitely looking towards the west.


2.       Looking back East

The PM hosted Chinese President Xi Jinping and is slated to return the visit later this month. But this visit has been strategically placed after his visits to the rest of South Asia. This can only be seen as a sign of solidarity with smaller neighbours in the vicinity who view India as the only friendly nation powerful enough to counter the Chinese threat in the Asia-Pacific. Visits to Bhutan, Nepal, Japan, Myanmar, Australia, Fiji, Seychelles, Mauritius, Sri Lanka and Singapore coupled with the invitation for them to attend his swearing-in ceremony sealed his commitment to India again being forthcoming to address issues of regional significance after years of a dormant and laid-back attitude under successive governments.


3.       Securing India’s Backyard

‘An iron hand in a velvet glove’ is what Mr Modi truly is. He has made sure that his voice of co-operation and failing that, the sound of his cannons, is heard from Kabul in the west to Dhaka in the east and from Beijing in the north to Colombo in the south. The first concentric circle of foreign nations surrounding India have been made to realize that she will not tolerate indiscipline at her borders and will act swiftly and decisively against those who try to violate her sovereignty as Pakistan has found in recent times.


4.       Bringing in Trade

Industrialists have always had better deals and working conditions under Mr Modi’s government since the time he was Chief Minister. He merely took his idea of local manufacture of products to the next level when he was called upon to lead the nation. The ‘Make in India’ campaign has attracted not only the attention of corporate giants and MNC’s, but also various governments who seem to think it is lucrative to enter into an emerging market as vast and diverse as India. There is something for everyone and ultimately the country has a lot to gain if investment keeps pouring in. Sectors previously under government control will gain momentum under privatization and decrease reliability on imports to sustain demand. The value of the rupee will rise and with it, prosperity. The defence sector has been given utmost priority in this drive which is a step in the right direction.


5.       Connecting with the Global Indian community

Being the ‘Rock star’ of an Indian PM, Narendra Modi enjoys immense popularity with NRIs and PIOs all over the world. Wherever he travels, he makes sure he meets the Indian population who come in droves to see the leader of their homeland and to hear the orator in person. The crowds at Madison Square Garden in New York, the Olympic Park in Sydney and Ricoh Coliseum in Toronto are witnesses to the fact that this PM has managed to unite his flock not only at home but also abroad. They believe that this PM will lead India into the glorious future.

Tuesday, 20 January 2015

The Ten Rupee Tantrum


Image Courtesy: Google Images.

Have you seen people go nuts when their money goes missing? It is obvious that large sums of money end to cause problems when they disappear but it is absolutely hilarious when people raise a hue and cry for meagre amounts of money that they don’t care about any way. My mind, in its infinite wisdom scoffs at such people and I’m sure you too might have had such an occasion yourself.

I’m writing this post from the state transport ‘super deluxe’ bus because this is the scene of the event and I’m bringing it live to you ‘on the way’ to Ahmedabad. Now, we have these intercity ‘superfast’ buses that have a driver but no conductor (job cuts affect the public sector too). Before, one could just sit in the bus and buy the ticket on the way to the destination but not now! Now, you’ve got to buy the ticket before the bus leaves because the conductor gets off the bus.

Enter: The Woman.

The bus is about to leave and she is the last one to climb aboard just as the bus is about to leave.. the conductor climbs aboard for her and gives her a ticket. Since the bus is already late, the driver and conductor are both in a hurry. The conductor gives her ten rupees less in the change he hands back and leaves the bus as it it rolls on to the highway.

The Woman realizes ten seconds too late that she got ten rupees less and muttered round about ten swearwords at ten generations of the conductor’s family before asking the driver to stop the bus and get back her money. As if that was going to happen…

So halfway into the journey at the rest stop, she again asked the driver about her ten rupees and what he was going to do about it. The driver said he was going to do nothing about it, wore his killer shades and put the bus into first as we started for Ahmedabad again.

However, one or two other passengers either took an interest in her story or were making a fool out of her; they asked her about the issue. She, the poor victim, recited the whole story as it happened but very conveniently keeping the amount of money ambiguous so as not to give her new found sympathizers a chance to scoff at her ridiculousness like the driver and this funky guy with the laptop were doing. So, when her sympathizers thought that the conductor didn’t return fifty rupees, she didn’t even correct them, instead going with the flow and playing the hapless victim to perfection. By the end of the hour, she had lamented so much that she herself must have believed that she had been conned out of fifty rupees instead of ten.

But it isn’t nice to make fun of this woman. She probably needs attention from people around her.

Oh wait! A development!

The sympathizer turned out to be a driver himself and actually called up a conductor or two and found the ‘guilty one’. He made him aware of his mistake and actually reprimanded him on the phone. He then paid the woman fifty rupees that he believed she was owed and the woman took it! 

No reluctance, no shame, only forgiveness in her eyes as she looked right into sympathizer’s eyes and took the money.

I feel like clapping at her brilliant performance but I think silence is of more benefit since it offers a better view of the stage in this play.

Driver! That's my stop!

Saturday, 15 February 2014

World Cup Woes

[Football is to Brazil what cricket is to India; an obsession, almost a religion.

The opening ceremony is slated to take place on the 12th of June, 2014 and it seems that still over half the stadiums out of the total twelve are not ready to host such a major tournament. This, in spite of Brazil getting seven years to prepare; more time than any other country has received till date.

Even though the Brazilian government has put in an estimated $14 billion into this hurried program and the cities who are hosting expecting to put in some more of their funds, it is widely believed that it may already be too late for few of the cities and that FIFA might consider changing their venues altogether and in the process, shaming the host nation before the international community.]


[This is my article for the Youth Connect magazine. You can read the entire article here: FIFA 2014 Woes: Brazil Unprepared For The World Cup?]

Sunday, 19 January 2014

The Ukrainian Dilemma

Ukraine, a former state of the Soviet Union is on the verge of taking a big step that either holds the key to its rapid development or stagnant rust in the years to come. The people of Ukraine have the choice of joining either the European Union or the Russia led Customs Union. The Ukrainian government is now stuck on both sides as joining the former will offend and strain relations with their powerful neighbour, while joining the latter will cause the people of the nation to throw them out of power.

The state of Ukraine is both, a former Soviet nation and now a European nation. By that standard, it is easy to assume the pull it is receiving from both sides to join in alliance. The European Union claims that Ukraine is an integral part of Europe and that trouble in that country can lead to trouble in Union itself as majority of exports in the form of oils and agrarian products are sourced from there. On the other hand, Russia is attempting to rearrange an alliance of the former Soviet countries in order to increase its influence and bring it on par with the United States. Russia’s tactics are such that it seems to be extending a helping hand to its former family but in reality is just playing the big bully by making institution in such countries dependent on its own economy.

The European Union offers unbridled trade and security in exchange for Ukraine joining its ranks and building a stronger Europe and this fact seems to be ratified by the existing trade agreements between the two. Even the youth of Ukraine sees the benefits, both economic and educational, of joining the EU. But President Yanukovych has sought 20 Billion Euros a year to upgrade the Ukrainian economy.

The Customs Union, or to be more exact, Russia offers financial aid, near redemption of due payments and a slash of a third in prices of oil import to Ukraine. It is also offering to purchase government bonds to the tune of $15 billion. Kiev is also under pressure from her neighbour to pay an outstanding gas bill of $17 billion. Russia has further put a ban on Ukrainian chocolates and will probably escalate measures in order to coerce them into joining the Customs Union that now also includes Belarus and Kazakhstan.

Since President Yanukovych visited President Vladimir Putin in the Kremlin, there have been rumours that he had decided to join the Customs Union against the wishes of the people. That he might have sold out the country in exchange of all the monetary benefit that Russia was willing to extend to Ukraine. Protests against the Customs Union have been in progress for the past two months and had intensified after the meeting, on the verge of getting violent as claimed by the government which recently passed a law banning anti-government protests, illegal tents on public grounds and criminalized the slandering of government officials. This controversial law was passed with just a show of hands by the President’s supporters in Parliament instead of electronic voting. The opposition has claimed this to be a coup by the government which had turned corrupt to its core and was now following directions given by Russia.


The above is a classic example of a large nation trying to strong-arm its weaker neighbour into submission by the very ‘subtle’ methods of overdue payments, refusal of financial aid and trade embargo. And even though this is a case where Russia is doing so, it is not just them; the United States of America has also displayed this tendency a number of times where it has splayed its military presence all over the world in spite of opposition from all quarters, all in the name of maintaining ‘World Peace.’