Wednesday, April 09, 2008

Global Hunger: The Next Stage of Globalization

The march of interconnected global forces does not cease.... global trade, global finance, global village, global terror, global war on terror, global corporations, global warming, global travel, global citizens, sub-prime crisis, global energy crisis, etc.... And now Global Food Crisis!

...it seems only yesterday, that one heard people talking about the benefits of globalisation, and how now there is plenty of food to feed the world... And given time (and "good" governance) it will all trickle down.

In any case, here is a slice of news headlines from global press:

  • Who Caused the World Food Crisis?
    Financial Post (April 8, 2008)
    ..."We are now by all accounts in the midst of a global food crisis: key grain prices were up 40% to 130% in the last year, people are protesting and hardship is mounting. But it could soon be worse. Governments and agencies all over the world are gearing up for a global "New Deal" on agriculture policy to solve the food crisis, which means the people who brought us the food crisis are the same people who now want to fix it.

    The World Bank reports that prices of staples have jumped 80% since 2005. The price of rice hit a 19-year high last month, and wheat rose to a 28-year high, twice the average price of the last 25 years. Factors behind the surge in prices are varied, including bad weather in some regions, soaring demand from growing populations, and US$100-a-barrel oil".



  • The Looming Food Crisis
    The Guardian (August 29, 2007)
    ..."As the US, Europe, China, Japan and other countries commit themselves to using 10% or more alternative automobile fuels, farmers everywhere are rushing to grow maize, sugar cane, palm oil and oil seed rape, all of which can be turned into ethanol or other biofuels for automobiles. But that means getting out of other crops.

    The scale of the change is boggling. The Indian government says it wants to plant 35m acres (140,000 sq km) of biofuel crops, Brazil as much as 300m acres (1.2m sq km). Southern Africa is being touted as the future Middle East of biofuels, with as much as 1bn acres (4m sq km) of land ready to be converted to crops such as Jatropha curcas (physic nut), a tough shrub that can be grown on poor land. Indonesia has said it intends to overtake Malaysia and increase its palm oil production from 16m acres (64,000 sq km) now to 65m acres (260,000 sq km) in 2025."



  • Fear of Rice Riots as Surge in Demand Hits Nations across the Far East
    The Times - Online (April 8, 2008)
    ..."The US Department of Agriculture believes that the world will suffer a 29 million tonne discrepancy this year between what it needs to feed itself and what it can actually produce. Markets have been quick to recognise this and the traditional Asian staples of soyabeans, palm oil and pork have all soared.

    Many grain and edible oil markets have also been squeezed by what some observers believe is an unsustainable conflict between cars and stomachs. Land that might previously have been used to feed people is increasingly planted with crops designed for conversion to biofuels, forcing unexpected rises in the prices of everything from tofu to instant noodles."



  • Food Prices Rising across the World
    CNN (March 25, 2008)
    ..."From subsistence farmers eating rice in Ecuador to gourmets feasting on escargot in France, consumers worldwide face rising food prices in what analysts call a perfect storm of conditions. Freak weather is a factor. But so are dramatic changes in the global economy, including higher oil prices, lower food reserves and growing consumer demand in China and India...

    ...Clashes over bread in Egypt killed at least two people last week, and similar food riots broke out in Burkina Faso and Cameroon this month.

    But food protests now crop up even in Italy. And while the price of spaghetti has doubled in Haiti, the cost of miso is packing a hit in Japan...

    ...Among the driving forces are petroleum prices, which increase the cost of everything from fertilizers to transport to food processing. Rising demand for meat and dairy in rapidly developing countries such as China and India is sending up the cost of grain, used for cattle feed, as is the demand for raw materials to make biofuels.

    What's rare is that the spikes are hitting all major foods in most countries at once. Food prices rose 4 percent in the U.S. last year, the highest rise since 1990, and are expected to climb as much again this year, according to the U.S. Department of Agriculture.

    As of December, 37 countries faced food crises, and 20 had imposed some sort of food-price controls"....



  • Stuffed and Starved: As Food Riots Break Out Across the Globe...
    Democracy Now! (April 8, 2008)
    ..."Global food prices have risen dramatically, adding a new level of danger to the crisis of world hunger. In Africa, food riots have swept across the continent, with recent protests in Burkina Faso, Cameroon, Ivory Coast, Mauritania and Senegal. In most of West Africa, the price of food has risen by 50 percent——in Sierra Leone, 300 percent. In the United States there has been a 41 percent surge in prices for wheat, corn, rice and other cereals over the past six months".


  • Grains Gone Wild
    New York Times (April 8, 2008). By Paul Krugman
    ..."These days you hear a lot about the world financial crisis. But there’s another world crisis under way — and it’s hurting a lot more people.

    I’m talking about the food crisis. Over the past few years the prices of wheat, corn, rice and other basic foodstuffs have doubled or tripled, with much of the increase taking place just in the last few months. High food prices dismay even relatively well-off Americans — but they’re truly devastating in poor countries, where food often accounts for more than half a family’s spending.

    There have already been food riots around the world. Food-supplying countries, from Ukraine to Argentina, have been limiting exports in an attempt to protect domestic consumers, leading to angry protests from farmers — and making things even worse in countries that need to import food..."



  • Global Food Crisis Looms as Grain Prices Soar
    Business Day (April 4, 2008)
    ..."World Bank president Robert Zoellick called yesterday for a co-ordinated response to the spiralling prices, which “were exacerbating shortages, hunger and malnutrition around the globe”. He said 33 countries could face social unrest because of higher food and energy prices....

    ....“We need a new deal for global food policy that should focus not only on hunger and malnutrition, access and supply, but also on the interconnections with energy, yields, climate change, investment, the marginalisation of women and others, and economic resilience and growth.""



  • Hunger is set to grow as global food stocks fall
    The Times of India (March 8, 2008)
    ..."Global wheat stocks were down to 107 million MT (metric tonnes) in 2007, compared with over 197 million MT in 2001; rice stocks were just 71 million MT compared with 136 million MT...

    ....In 2007, the world supply of wheat was affected due to drought in Australia, a freeze in US and lower production in Ukraine. The price surge was also fuelled by the new US law saying the use of ethanol for automobiles should be doubled to 15 billion gallons by 2015. Ethanol is made from corn..."



  • The World's Eating Disorder
    The Standard - Hongkong (April 2, 2008)
    ..."Global food prices rose 35 percent in the year to the end of January, according to the United Nations, accelerating an upturn that began in 2002. Since then, prices have risen 65 percent....

    ....The Chinese, who ate just 20 kilograms of meat per capita in 1985, now eat 50kg a year. Each kilogram of beef takes about 7kg of grain to produce, which means land that could be used to grow food for humans is being diverted to growing animal feed.

    As the West seeks to tackle global warming, a drive towards greener fuels is also compounding the problem. It is estimated that one in four bushels of corn from this year's US crop will be diverted to make fuel ethanol.

    Palm oil is also at record prices because of demand to use it for biofuel, causing pain for low-income families in Indonesia and Malaysia, where it is a staple.

    But despite the rising criticism of biofuels, the US corn-fed ethanol industry enjoys wide political support because it helps farmers."


    etc. etc....

    And so we may continue to see an increase in these global trends as have been happening during last few weeks/months... e.g.,

  • Food riots have been reported from Kolkata to Namibia, Zimbabwe, Morocco, Uzbekistan, Austria, Hungary, Mexico, Burkina Faso, Cameroon, Egypt, Indonesia, Ivory Coast, Mauritania, Mozambique and Senegal etc. during last few weeks/months.

  • The Philippine government had asked fast-food chains and restaurants to serve half portions of rice to cut waste,

  • China, Egypt, Vietnam and India, accounting for more than a third of global rice exports, have curbed rice exports.

  • Pakistan sent troops to guard flour mills in January.

  • Inflation in India rose to 7%

  • In Vietnam, where consumer prices rose more than 16 percent year-on-year in the first quarter of 2008, strikes are becoming more frequent.

  • Even in Singapore, one of Asia's wealthiest countries which maintains tight restrictions on public assembly, ten people were detained by police last month after they held a rally, without a permit, to protest rising living costs.

    Etc.

  • Tuesday, April 08, 2008

    The Economics of Post_Olympics

    As the Beijing Olympic Torch/Flame - paradoxically, the universal symbol (!) meant to remind the participating countries about "the lasting unity of mankind" - battles its way through the protestors on its way from Olympia to Beijing, there is another aspect worth considering.

    Why do countries compete to host the Olymics? What is the economics of event?

    Obviously, such a huge event attracts large investments, builds infrastructure, brings in tourism revenue,etc... And leads to a jump in GDP. In addition, there is also earnings through broadcasting rights, sponsorship money, licensing of logo and merchandise, etc.

    But what happens after that?

    One study compared the GDP growth rate of the hosting countires from 1952 onwards, and compared the deviation in country's average GDP growth rate for 12 year duration (4 pre-Olymic years and 8 post-Olymic years)

    This is what the graph shows:



    ... That is, prior to the Olympics and during the Olympic year GDP growth is higher than average - maxing out at nearly 1.5% above average GDP in the 3rd year before the Olympics. But once the Olymics are over, the growth rate falls much below the average...

    Another recent study described on Morgan Stanley's Global Economic Forum also narrates similar trends:

    "We looked at the economic performance of the Olympic host countries (OHCs) since 1956. The striking common feature is an acceleration in GDP growth in the year in which the Olympics were held, followed by a year of sub-par growth. Of the 11 cases we examined since 1956, only the US (Atlanta) in 1996 did not show a slowdown following the Olympics. The slowdown was particularly stark in Australia (1956), Japan (1964), the US (1984) and Korea (1988). Spain actually fell into a recession in 1993. In the two most recent Olympics (Athens and Sydney), both Greece and Australia decelerated by 1.5-2.0% between the year before and that after the Olympics.

    ...Average GDP growth deviation from trend tends to decelerate from 1.1% in the year prior to the Olympics to 0.9% in the year of the Olympics, followed by a slowdown to -1.2% in the following year...

    ....We also examined the performance of the currencies of OHCs (for post 1972 Olymics)... In Canada (1976), the US (1984) and Spain (1992), the currencies of the OHCs depreciated significantly in the two years after the Olympics. In the case of Sydney (2000), the AUD weakened modestly in the ensuing year. However, in the cases of Seoul (1988) and Athens (2004), USD/KRW and EUR/USD remained essentially flat over the two-year period, while the USD actually strengthened following the 1996 Atlanta Olympics. Therefore, with a few exceptions, the currency of the host country depreciated when its economic growth decelerated following the Olympics."


    [The article, interestingly, while acknowedging "the historical regularity with which the growth rate of the country that hosts the Summer Olympics tends to show a pronounced slowdown following the Games", goes on to "conclude" (?!) that in case of Beijing Olympics, "there are special factors that are likely to mute the magnitude of this slowdown."]

    Monday, April 07, 2008

    ...let them eat cakes and biscuits!

    As the inflation in India spirals up to 7%, and the prices of the essential commodities, specially cereals and pulses, have shot up, here are two very creative explanantions by two ministers.

    According to Sharad Pawar, the President of BCCI (Board of Control of Cricket in India) and also, btw, the Agriculture Minister, "The dietary habits are changing. Demand is also going up."

    If one goes by his understanding, the changing food habits of Indians in south and north-east are the culprits. The inhabitants of these states, who were earlier consuming rice, have now started eating chaptis!!!

    No, he did not explain why the price of rice is also spiralling up.

    The other explanation comes from the Commerce Minister Kamal Nath. While participating the gala show - Incredible India@60 in Singapore (April 4-7, 2008), he explained that increased prices of the food are due to increased food consumption by the poor people. "We have great supply-side challenges in India at the moment with 15 million people moving from having one meal a day to two meals a day."

    ??!!!

    Maybe, like many others in this country, they also live in another time, another place... where every poor Indian lives on cakes and biscuits!

    Sunday, April 06, 2008

    My "Encounters" with Maoists/ Naxals

    Well, to be honest, I did not have any such "direct" encounters... only some "vicarious" ones

    One of the most recent ones was today, when I finished reading Sudeep Chakravarty's travelogue "Red Sun: Travels through the Naxalite Country"...

    For those who have not read the book, it is highly recommended. It breaks through the veil of denial, which the aspiring urban middle-class, the "India Shining" media, the politicians and bureaucrats tend to deny/under-represent in the public awareness/ discourse... Even when this growing phenomenon is publicly noted, it is seen/described as a regional problem; the news gets covered in the regional newspapers/editions...

    However, if one pays attention, the phenomenon is growing, and becoming increasingly noticeable. I tried to find out and in Google News, there were 210 news items on "naxal maoist" in last one week....



    And as the timeline shows, the trend has shot up in last 3-4 years...


    In any case, when the Prime Minister of India describes "Maoists" as the "single largest internal security threat" (as he did last year) - and accepts that 165 of the 600-odd districts are affected by this threat - then, if you are travelling into the hinterlands of India, the chances are more than one-in-four that you have a direct or vicarious brush with this "threat"

    (These 165 districts, incidentally, are spread across 14 Indian states. Among the other non-Maoist-effected states are the otherwise-troubled J&K, Arunachal Pradesh, Manipur, Nagaland, Assam and Meghalaya - thus, leaving only eight Indian states as "peaceful")

    Reading the book, brought back these memories of my "encounters" during last few months. During last couple of months, I had a chance of travelling across the interiors of Jharkhand, Orissa and Chattisgarh in connection to some assessment of NGOs... This was also an opportunity to cross-check the official line that the Maoists - described as "these thugs/ anti-national elements/ criminals" etc. - resist "development" (industrialisation, mining projects, large dams, investments, job-creation, building of infrastruction, etc.), because they feeds on poverty, misery and lack of development and so on.

    Here are some snapshots from my "vicarious" experiences:

    Snapshot 1:
    I was in Hazaribagh (Jharkhand). My hosts were one of the largest - and oldest - NGO in the region (Bihar & Jharkhand). The NGO was started by four engineering graduates in 1971, who were inspired by the ideas of Gandhi, Binoba Bhave and Jai Prakash Narain. They had continued working in programs related to socio-economic development (e.g., supporting micro-entrepreneurship), health & sanitation, education, community mobilisation through forming SHGs, etc... And they covered virtually the whole of Jharkhand and Bihar.

    "Just out of curiosity," I asked, "all that you are doing is in the region heavily infested by Maoists. And all that you are doing goes against what these people stand for. Your funding comes from foreign, mostly foreign donors, and your work helps people becoming self-sufficient... And so, they will not have any reason to join the Maoist revolution. Don't you come in conflict with the Maoists?"

    "Not really," one of the founders told me, "yes, sometime they accost our people. But you only have to tell them that you are part of "Samiti" - that's how we are known - and they let us do our work. We may not agree with them, but they do agree with what we are doing.... No, there is no conflict of objectives."

    Snapshot 2:
    This was in the interiors of Chattisgarh. My hostess, an old self-effacing missionary sister, managed an NGO which had worked in the four districts of the state in area of healthcare since 1969. Over a period of time, they had established more than 90 Rural Health Centers (serving 1200 villages), managed by registered nurses, and supported by Mitanis - the Village Level Healthworkers - who were trained by the organisation. It had pioneered a Community Health Insurance scheme, at an yearly premium of "2kg of rice", which provides comprehensive healthcare to more than 90,000 poor and tribals in the region.

    The focus of their activities, however, goes beyond the just the physical health. It is a holistic approach, which delves deeper into the causes of ill-health, and deals with them through people-centred activities like leadership training, health education, livelihood-promotion, formation of self-help-groups and tackling the various antecednts of malnutrition. It is more like a social movement, than just a healthcare venture...

    When I asked the sister the same question, she said, "No, we never had any problems with them. Maybe, we are not in "The Corridor". But even if we were in their area, why would there be any problems? We, these women in the SHGs, have often achieved the same aims, like fair disbursal of money from government schemes, social justice in a caste-ridden village, through more peaceful means." She thought about it, and then added, "we do have problems of wild elephants, though."

    That was January 26th, a very cold day in Pathalgaon. We celebrated the Republic Day by hoisting the Tri-colour...

    Snapshot 3:
    "You see that hill over there? Beyond that is "The Corridor"," Mr Meher - the "Public Relations Officer" of the NGO I was visiting - mentioned in passing, as if he was describing the location of a roadside dhaba. It was early morning, and I had gone to see the "innovative schools" which the organisation runs in the interiors of Orissa. These classes were held in the premises of the local government schools.

    "No government teacher comes to teach here," Mr Meher told me, "but we use their building before the school timings. We recruit a local educated youth to teach the basics of reading and maths, and about health, hygiene, environment, their rights and responsibilities, etc."

    There was, of course, an incentive to attend for the kids - free soya milk and bread... which, of course, was also a great attraction for many to even bring their toddler siblings to the school :0)

    Later is the day, when we were returning, I asked him about the Maoists. "Your activities cover the whole of Orissa. Even though an NGO, you are almost like a mid-size private-sector company with a "turnover" of Rs. 250cr and employing 1200-1500 professionals" - they are into everything from micro-finance, micro-insurance (with tie-ups with some of the well known corporate insurance companies), micro-enterprise, social development (from running a home for destitute women to SHGs for village craftsmen... including a chain of retail outlets for the produce from the SHGs) - "You are trying to bring income, prosperity, self-sufficiency at grassroot level. Doesn't your work come in conflict with the Maoists?"

    He weighed the question, looked at me quizically, and said, "We are doing things which are good for people. Why would we come in conflict with anyone? Yes, there were instances when one of our people were caught by them. But we explained, and they released him."...

    Snapshot 4:
    I was packing my bags to return the next day, and glanced at the headlines of local edition of Indian Express. Its headline screamed of about the murder of an ex-surpanch by the Maoists/Ultras - he was supposed to be a police informer. What caught my eyes was this line in the news:



    "The ultras left behind the posters in which they warned against sale of liquor, trafficking of timber and encroachment of tribal land".
    !!!?

    I was/am confused. Do I sympathise with the violent "ultras"? NO!... There are better - non-violent - ways...

    On the other hand, shouldn't such posters be distributed by the government/ state to its populace?...

    We live in confusing times...

    Friday, April 04, 2008

    On Not Being a "Bystander"

    This is in continuation of the last post - Are You a "Bystander"?...

    There are words one reads, which make sense and remain etched in the memory.

    Here are some for me:

    "I wish the ring had never come to me...I wish none of this had happened. So do all who live to see such times, but that is not for them to decide. All we have to decide is what to do with the time that is given to us."
    - The Fellowship of the Ring

    "The chain of steps determine the path, but the first step makes the path appear."
    - Sufi Poet Attar.

    "You must be the change you wish to see in the world."
    - MK Gandhi

    "Lay out a well-reasoned argument in front of a thinking person and you might change their mind. Change enough people's minds and you might change the world. Unfashionable, I know..."
    - Fanny Armstrong (Director of Drowned Out: We Can't Wish Them Away)

    "some questions do not have clear answers; nevertheless, it is important to raise those questions."
    - Unknown

    "Whatever you do will become insignificant, but it is very important to do it."
    - MK Gandhi

    "“Never underestimate the power of a handful of individuals to change the world. After all, it’s the only thing that ever does.”
    - Margaret Mead

    "The reasonable person adapts to the world; the unreasonable one persists in trying to adapt the world to themself ... therefore all progress depends on the unreasonable person."
    - George Bernard Shaw

    "It is remarkable how much you can achieve when it does not matter who gets the credit.”
    - attributed to Margaret Mead or Harry Truman

    "First they ignore you, then they laugh at you, then they fight you, then you win."
    - MK Gandhi

    Monday, March 31, 2008

    Are You a "Bystander"?

    While cleaning my mailbox today, I came across this year-old mail from a "friend" - well, we had communicated on mails, talked a couple of times on phone, and had even met once accidentally. This young MBA from IIM/A was working with Ashoka:Innovators for the Public, and we had got in touch because of my interest in Social Entrepreneurship.

    His announcement came out-of-the-blue...

    "...I am leaving Ashoka to work in the grassroots in Assam. The situation in my home state is terrible, and I do not wish to remain a mute spectator to this devastation. I am not yet sure what I'll exactly do, but I plan to travel extensively to figure out how best I could contribute to making some positive difference."

    Reading his mail again, reminded me of the reverse stance many/most of us get quagmired into.

    I had once written about this Logic of Inaction, and his mail stimulated me to make this quiz for myself (you may also like to take it):

  • Am I aware that something seems wrong in a situation around me? YES / NO

  • Do I actively deny taking responsibility - however, remote - of my own part in purpetuating/creating the problem or preventing its resolution? YES / NO

  • Do I claim that, given my "circumstances", I could not have acted otherwise? YES / NO

  • Do I discount my own autonomy and power to influence the situation? YES / NO

    Realising that such a candid and conscious admission to an otherwise unconscious stance of negation is difficult - actually impossible - to make to oneself, I also created a checklist of typical statements that one makes (to oneself and to others) to justify one's Bystander Stance.

  • "Oh, this is none of my business."

  • "The situation is actually far more complex than it seems."

  • "Well, I do not have all the information/am not qualified to deal with this/ make a comment."

  • "I don't want to get burned again."

  • "I want to remain neutral/ am neutral on this issue."

  • "I'm only telling the truth as I see it."

  • "I'm just following orders/ doing my duty."

  • "What difference will my individual contribution/effort make to such a large/complex issue?"

  • "Who is to be blamed? They brought it upon themselves."

  • "I don't want to rock the boat."
    etc. etc....

    So...? Are you a Bystander?

  • Sunday, March 30, 2008

    East is East, and West and West...

    ...and never the twain shall meet !!

    Rudyard Kipling might have written his ballad for modern India.

    Omakar Goswami's CERG Advisory compiled detailed data from Census 2001 on rural India, going down to the level of its around 600 districts, tehsils and villages. The findings were published in Business World about 2 years back

    The data ranked every single Indian district in terms of household ownership of, and access to eleven assets or amenities. These were:

    1. whether a household has a bank or post-office account,
    2. whether it has a permanent or pucca house,
    3. whether it has an electricity connection,
    4. whether it owns a television set,
    5. whether it owns a scooter or motorcycle,
    6. whether it uses LPG for cooking,
    7. whether its drinking water source is either in the homestead or within 500 metres,
    8. whether it has a separate kitchen within the homestead,
    9. whether it has a separate toilet,
    10. whether it has a separate enclosed bathing place and
    11. whether whether it has a telephone.

    Needless to say, if the majority of households have access to these assets and amenities, the region would be more economically prosperous.

    What emerged was this picture:



    Is there a learning in this map?... Think about it!!!

    Update: On second thoughts, here are some indications....

    A Map of Mineral Resources and Forest Cover in India:


    A report Rich Land, Poor People by Center for Science and Environment, noted that:

  • If India's forest, mineral bearing areas, regions of tribal habitation and watershed are all mapped together, they will overlay each other on almost the same areas....

  • The three tribal-dominated states of Orissa, Chattisgarh, and Jharkhand... account for 70% of India's coal reserves, 80% of its high-grade iron ores, 60% of its bauxite and almost all its chromite reserves...

  • Of the top 50 mineral producing districts in the country, almost half are tribal. The average forest coverin these districts is 28%, much more than the national average of 20.9%... etc.

    Earlier in the report, is a paragraph:

    "Minerals, however, are essential for a nation which stands on the threshold of a promising future, and must be extracted. Which means the land, its resources and people must make way for the miners. Enamoured by mining industry's promises of progress, Indian planners and lawmakers have achieved this with clinical and brutal precision. Forests are razed, waterways polluted and clogged, farmland transformed into wasted tracts, and mining dust hangs neavy in the air. As for the people, they are summarily evicted with little prospect or promise of compensation and rehabilitation.... Most mining areas of the nation remain mired in grinding poverty and deprivation."

    ... which perhaps may explain this last map:

  • Wednesday, March 19, 2008

    Democracy: Inside & Outside Iraq

    Five years back, I woke up at 4:30am (IST) - not my usual schedule - just to switch on the TV... with a hope that No! this will, perhaps, not happen!!!.

    It happened!!


    Today is the 5th anniversary, of what one of my friends once described as my "magnificant obsession"...

    ...To me, it is also a time to reflect, refresh our memories, and consolidate our understanding of where the world has been led/dragged to... Some of these unfolding events were covered in AlternativePerspective, e.g.,:

  • Iraq War @ AlternativePerspective (1)

  • Iraq War @ AlternativePerspective (2)

  • Iraq War @ AlternativePerspective (3)

  • Iraq War @ AlternativePerspective (4)

    For the rest, pictures speak better than words:
    [I owe the credits for these to the numerous websites from where I have been downloading them - thanks!]

    Spreading Democracy Inside Iraq:







































    ...Meanwhile, there were other Grassroot Democratic Voices (muted, naturally!) Outside Iraq:
    (oh, yes! One knows that the "media" failed to bring us these voices and images)

    New York:


    London:


    Rome:


    Cairo:


    Karachi:


    Bombay (Mumbai):


    Melbourne:


    Ankara, Turkey:


    San Fransisco:


    etc. etc...
    In conclusion:

  • Sunday, March 09, 2008

    Biharis, Muslims Need Not Apply...

    In an earlier post - Ekalavya Applies for a Job!! - the issue was about Dalits and Muslims...

    ...and now, perhaps we need to add Biharis to the list of those discriminated... this time due to educated corporate India's obsession with "Proper English"...

    Thanks to Yawar's mail, here are excerpts from the news-item in Mumbai Mirror

      ....Even the HR firm was surprised by the pre-condition set by the BPO. "Though we were surprised, the BPO organisation, Netambit, explained that people from UP and Bihar have a problem with their diction, especially with words like insurance where the ‘sh’ sound is pronounced as ‘s’," said Nadeem Faruqi, director, Connect Global, the HR firm. He was unable to get any logical explanation as to why Muslims were also excluded.

      Uma, the HR head for Netambit, said, "We do not prefer people from UP and Bihar because of their strong mother tongue influence." However, she added that the HR firm was trying to malign them. "It is not at all true that we’ve said they are ineligible. In fact, we also do not prefer candidates from the North-East. Even they have a very strong mother tongue influence."

      But Faruqi was firm. "Why should I want to malign them? For me, this is my business. We have been getting them candidates for the past three months. We have been verbally instructed that they don’t want candidates from UP and Bihar. They also do not want Muslims. I myself am a Muslim, but we didn’t probe much because for us this is business. They are our clients, they have specific needs, we service those needs," he said....

      ...Keith Rowe, director, HR Solutions, another consultancy, confirmed this. He said, "This kind of pre-conditioning exists in both big and small BPOs. We had many clients telling us categorically that they did not want candidates from a particular state, belonging to a particular caste or creed. In fact, this caste system works in another way in this sector. Looks and gender can also be qualifiers or disqualifiers. We also get requests for good looking girls because ‘they add to the glam quotient of the office environment’."

      ...Akhilesh Karn from Bihar, who used to work with GE Money in Gurgaon, had a tough time getting his last job. "Due to our accent, it is very difficult to get a job in a BPO. Because the managers know that we have a tough time getting jobs, at times, they even make us work longer shifts without any overtime," he said.


    Coming back to unsolved riddle of "He was unable to get any logical explanation as to why Muslims were also excluded.... may be the reason is:

    The "Other" in Modern Indian "Hindu" Psyche....

    Sunday, March 02, 2008

    Indian Budget'08: When is "sop" Not a "sop"?

    Sop (n.): A piece of food soaked or dipped in a liquid; something yielded to placate or soothe; a concession given to mollify or placate, etc.

    The highlight of the India's Annual Budget yesterday was the waiver of Rs.60,000crore ($15bn approx) debt to the small and marginal farmers.

    Some hailed this as "revolutionary", while others criticised this as a "populist stunt" - a "sop" given with the next year's elections in mind. In either case, both sides agree that this is "whopping" amount.

      [Though this is not the focus of this posting, my own understanding is that this debt relief package will not be able to solve the farmers' debt problems - for two reasons:

    • According to the pre-budget Economic Survey, non-institutional sources (e.g., local moneylender, traders, relatives, etc.) account for more than 40% (or Rs.48,000crores) of farmers' debt, which is taken at exhorbitant interest rates, and

    • The debt relief touches only the symptom, and not the root-cause. Farmers take debt because the production costs have gone up, remuneration for produce has gone down, and state investments in building farm-related infrastructure. Quoting from an earlier post in 2005:

      "...So why are Indian Farmers indebted?

      The decline in agriculture started during 1980's, with the decline of public investment in the sector — in irrigation, marketing infrastructure like warehousing, mandis, etc, and seeds and extension services. From 16.4 per cent in 1979-80, plan outlay in agriculture and allied activities slumped to 4.9 per cent in the Ninth Plan (1997-2002), making farming, always the most privatised, independent business, a totally support-less venture in these liberalised, globalised times (the fact that this coincided with the IMF loan is a different story)

      Meanwhile, the global prices have dropped: from $216/ton in 1995 to $133/ton in 2001 for wheat, $98.2/ton in 1995 to $49.1/ton in 2001 for cotton, $273/ton in 1995 to $178/ton for soyabean, etc.

      The drop in global prices is not because of increased productivity, efficiency and competitiveness of other developed economies, but due to the agricultural subsidies doled out by the rich nations to their agribusiness corporations (e.g., Monsanto, Cargill, Syngenta, etc.).

      For instance, the U.S government pays $193/ton to US Soya farmers; 25000 cotton producers in the U.S are given a subsidy of $4bn annually, etc., leading to a subsidy of $ 230 per acre in the USA. In the process, the Indian peasants are loosing $ 26 billion or Rs.1.2 trillion annually. This is a burden their poverty does not allow them to bear. Hence the epidemic of farmer suicides."


      This debt relief does not address these basic issues...]

    But coming back to the issue of how "whopping" is this "sop"?...

    One concern often mentioned in the mainstream media (and that includes the metropolitan conversations in blogosphere) is about where will this money come from - and that why should the taxes paid by individuals and corporate be used for bestowing this dubious largesse of Rs.60,000crores...

    Here are some benchmarks:

    Where did the honest - even if ignorant - taxpayers' money go during last financial year?:

  • Export related subsidies and exemptions (when given to industry, these are called "incentives") accounted for Rs.58,416cr

  • Individual tax-payers saved Rs.38,107cr on income-tax by investing in tax-exempted options under 80C of IT Act (in case, you want to exercise this option, here is an advice on how to save 88% of your income tax in the coming financial year.

  • The India Inc. got tax concessions worth approximately Rs.58,655cr, based on the analysis of over 3.28 lakh tax returns filed by the corporate bodies, representing over 90% of corporate tax returns... "these companies earned Rs 5,56,190 crore as profits before taxes, but declared taxable income of Rs 3,41,606 crore only during the financial year 2006-07.... Taking advantage of various exemptions and rebates, these companies paid taxes at the rate of 20.60%, substantially lower than the statutory tax rate of 33.66%."

  • Excise duty exemptions accounted for a revenue loss - or loss of taxpayer's money - of Rs 87,992cr

    There are various mechanics and modalities for exploiting the "legal leaks in the corporate tax systems" which is how the tax-consultants earn their living... If interested, check How Much Income Tax Did You Pay This Year?

    In any case, the issue is between:

    Rs. 58,416 + 38,107 + 58,655 +87,992 crores vs. Rs. 60,000 crores

    Needless to say, the marginal and small farmer has neither such tax-saving options - and for that matter, a taxable income!!!

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