2ndlook

Shaking The Pagoda Tree

Posted in America, British Raj, Desert Bloc, European History, India by Anuraag Sanghi on October 13, 2011
Opium, empire and the global ... - Carl A. Trocki - Google Books 2011-10-13 21-14-12

Opium, empire and the global ... - Carl A. Trocki - Google Books 2011-10-13 21-14-12

Pagoda

A common idiom in 18th and 19th century England was ‘shaking the pagoda tree’. This meant making easy, quick money. And the place it happened was India – and the Indies (Malaysia, Indonesia, etc.).

For the next 100 years, there was significant private loot. Apart from the institutionalized loot by the British administration of their Indian territories. Indian opium was an important product for the British Raj and started from Buxar, and continued till about 20 years before India’s independence.

British governors, Robert Clive and Warren Hastings faced lengthy Parliamentary inquiries about corruption.  Same was the story in Dutch colonies.

And corruption is rife in Imperial America today also.

Shakedown in modern times

Most recently, during the Iraq and Afghan Wars, the US Department of Defense has not able to properly account for (to the satisfaction of US Govt. auditors) a sum of (still being estimated) of US$2.3 trillion, says Donald Rumsfeld – to US$10 trillion, an estimate by Stephen Glain author of State vs. Defense: The Battle to Define America’s Empire.

In fiscal 1999, a defense audit found that about $2.3 trillion of balances, transactions and adjustments were inadequately documented. These “unsupported” transactions do not mean the department ultimately cannot account for them, she advised, but that tracking down needed documents would take a long time. Auditors, she said, might have to go to different computer systems, to different locations or access different databases to get information. (via Reforming Financial Management System Can Save Big  |  By Jim Garamone  |  American Forces Press Service).

For the accounting entries, $2.3 trillion was not supported by adequate audit trails or sufficient evidence to determine their validity, $2 trillion was not reviewed because of time constraints, and $2.6 trillion were supported. via DoD Audit Report No. D-2000-091 February 25, 2000 (Project No. 0FI-2115.01).

taking a look at the Department of Education, which, for the last three years hasn’t been able to get a clean audit. Then I understand that the Department of Defense shares many of the same problems that we have with the Department of Education. I think the IG just notes that in one of the audits that you went through of the 1999 financial statements included adjustments of $7.6 trillion — that’s trillion — in account adjustments, of which 2.3 trillion were supported by un — by reliable documents — were unsupported by reliable documentation. (REP. PETER HOEKSTRA (R-MI) – Testimony before the House Budget Committee on the FY 2002 Defense Budget As Delivered by Deputy Secretary of Defense Paul Wolfowitz and Comptroller Dov Zakheim, Cannon House Office Building, Wednesday, July 11, 2001.?

Pentagon contracting has been broken for decades. Former defense secretary Donald Rumsfeld said — on September 10, 2001 — that “according to some estimates, we cannot track $2.3 trillion in transactions.” The next day was 9/11, and counting Pentagon dollars was no longer a top priority. (via The Pentagon’s Marauding Fraudsters|Time).

“We know it’s gone. But we don’t know what they spent it on,” said Jim Minnery, Defense Finance and Accounting Service. (via The War On Waste).

DoD financial experts, Zakheim said, are making good progress reconciling the department’s “lost” expenditures, trimming them from a prior estimated total of $2.3 trillion to $700 billion. And, he added, the amount continues to drop. (via Zakheim Seeks To Corral, Reconcile ‘Lost’ Spending).

Back in time

A Portuguese word of uncertain origin, Pagoda probably a corruption of bhagvata. Another dictionary suggests (less probable, in my view) it is derived from from dāgaba, meaning ‘relic-container’, something that contained relics from Gautama Buddha’s body.

For sometime, till late 18th century, apart from describing a temple, the word was also used to denote a golden coin. The champa flower tree was also called Temple tree, or Frangipani.

Easy come

Making money was as easy as collecting champa flowers – which drop off very easily. Knowing the riches of Indian temples, like shaking a pagoda tree was the easiest way to get flowers, a shake-down of Indians was the easiest way to make money for Englishmen.

India, the richest economy of the world at that time, with Mughal treasury, the largest in the world, and English character that David Hume described so well, was a mix of circumstances never repeated before in history.

China’s solution to corruption

Posted in China, Current Affairs, History, India, Media, politics by Anuraag Sanghi on June 15, 2011
Two birds with one stone - Underpaid government employee of the past; and glib rejection of corruption charges. (Cartoon by RK Laxman). Click for larger image.

Two birds with one stone - Underpaid government employee of the past; and glib rejection of corruption charges. (Cartoon by RK Laxman). Click for larger image.

China believes it is a corrupt nation

China has a big ‘corruption’ problem. Apart from Western media reports, China’s own media confirms,

Corruption has long haunted the ruling Communist Party of China. The Party’s General Secretary, Hu Jintao, once said that “determined punishment and effective prevention of corruption concerns… the existence of the Party”. (via Former official executed by lethal injection).

A report carried by Time magazine, says that

The current level of corruption in China is systematic and widespread. It is so entrenched that honest officials are now part of a minority that risks being left behind. It is a system where corruption is the rule rather than the exception. According to the Chinese professor Hu Xing Do, 99% of the corrupt officials will never be caught. The few who do get caught are simply considered unlucky, and even if their punishment is typically heavy, the dissuasive effect remains minimal.

They have an answer

The Chinese answer to corruption has been death penalty. Liberally, widely, explicitly. A bullet in the head. Finito. Finito. Fini. Ände. Revestimento. Vuoden. Eind. Ende. final de la muerte. отделка . Τέλος.

That is the Chinese answer. To further ram home the point (in case the bullet does not do the trick), these executions are photographed, televised, published in newspapers, covered by the media.

Cant miss it.

Everyone must get equal opportunity at corruption. (Cartoon by Kirish Bhatt; courtesy - bamulahija.blogspot.com). Click for larger image.

Everyone must get equal opportunity at corruption. (Cartoon by Kirish Bhatt; courtesy - bamulahija.blogspot.com). Click for larger image.

Strike Hard

In 1983, Deng Xiaoping initiated what were called ‘Strike-Hard’ campaigns. Based on traditional imperial Chinese attitudes and wisdom, apparent from

traditional sayings like “a life for a life,” “killing one to warn a hundred,” “killing a chicken to warn a monkey” are embodiments of these retributive and deterrent beliefs.

Deng, who initiated the strike-hard campaigns in light of the rampant crimes, commented that the authorities could not be soft on crime, and the death sentence was “a necessary educative tool”

This thinking continues in China

The notion of “returning like for like” is rooted in China. The majority of the public could not accept that some murderers could go free after 10 years’ imprisonment.

It is believed in modern China that,

death penalty does have a strong deterrent effect. Studies do suggest that one execution deters five to 18 potential murderers from committing the ultimate crime. Though there is no detailed study on the death penalty’s deterrent effect on corruption cases, it can be expected to play a similar role. If corruption is struck off the capital punishment list in such a situation, there is a fear that all hell would break loose. (via Opinion: Corruption has to stay capital crime).

From the Deng’s initial ‘Strike-Hard’ campaign in 1983, crimes that qualify for death penalty has increased from 32 to 68 – ranging from corruption to embezzlement, smuggling and tax evasion.

The State has simply public appetite for vengeance, killings and torture. (Cartoon from chinadaily.com.cn/).

The State has simply public appetite for vengeance, killings and torture. (Cartoon from chinadaily.com.cn/).

Simply lovin’ it

What do the Chinese people think of these killings, shootings and executions?

Public opinion in China is rooted in the eye-for-an-eye and a tooth-for-a-tooth idea of justice. Efforts by the Chinese authorities to reduce categories of crimes for which death penalty can be awarded, sparked suspicions that ‘abolishing the death penalty for economic-related and non-violent offences (was) a tool to help privileged officials involved in corruption crimes escape capital punishment’ (text in parentheses supplied).

Chinese public opinion and reactions borders on being vengeful. Pictures on the Chinese internet, of the execution of Wang Shouxin, a woman government official from northern province of Heilongjiang scored more than a million hits. In another case,

Hearing the news of Wen’s execution, some local residents lit firecrackers or held banners that read “Wen’s execution, Chongqing’s stability” at the gates of the Municipal High People’s Court and the municipal Communist Party Committee. (via Former official executed by lethal injection).

Time magazine reports of the Chinese ‘appetite’ for such killings and executions. Even as China tops the world in the number of executions and killings, there is

endless “public demand” for this kind of punishment and (by) the surging popular anger, it would seem that there is actually not enough of it. Of all the criminal cases in China, those involving corrupt officials sentenced to death arouse the greatest interest. The morbid examples abound: from the public cheering for the recent death sentences. People in China viscerally hate corruption and are reluctant to see the death penalty dropped. (text in parentheses supplied).

Was China always like this.

During the time when Buddhism at its peak in China, in early Tang dynasty (618 AD – 907 AD), ‘death penalty was abolished for a time during the reign of Tai Zong emperor (627-650), one of the Tang dynasty’s most admired rulers.’

Chinese plans and measures

The Chinese do understand, that these killings and executions are not the answer.

If cutting hands, legs, heads, was the solution, every Islamic shariat-country would have been free of crime. China has been killing people since 1983, for nearly 30 years, now. Chinese corruption should have reduced. With the largest prisoner-population in the world, with the biggest secret-service, police force, the US should have been crime-free. After a sustained levels of executions at a historic-high, China still believes, it has a corruption problem.

In fact, Time magazine goes further and announces, ‘China is the global leader for the number of corrupt officials who are sentenced to death, and actually executed each year- carrying out 90% of (the executions) worldwide. Though another report by Time Magazine gives a varying estimate that China ‘puts to death more people than the rest of the world combined — about 70% of the global total in 2008.’ In 2001, Amnesty International recorded and confirmed ‘more than 4,000 death sentences and nearly 2,500 executions in China.’ Chinese authorities do not release execution statistics, ‘but rights groups estimate that they number from about 5,000 to 12,000 annually.’

Is the Chinese Government happy with these killings and executions? Using Western models, ideas and thinking, the Chinese look to the West for solutions.

For the first time in 30 years, China’s top legislature proposed this week to reduce the number of crimes punishable by execution. The proposal, largely symbolic, has drawn renewed attention to China’s controversial death-penalty policy, under which 68 crimes are punishable by death.

13 nonviolent economic crimes — ranging from smuggling relics and endangered animals to faking VAT receipts — have been dropped in a pending amendment to China’s capital-punishment law. Convicts above the age of 75 will also be eligible for the exemption. If passed, the revised law could slash the total number of capital crimes in the country by up to 20%. (via China Reviews Death Penalty for Nonviolent Crimes – TIME).

For one, Chinese authorities seem quite amenable to adopting the Western labels of developing country and increased ‘supervision’ as the models to go with.

“As a developing country, China’s current food and drug safety situation is not very satisfactory because supervision of food and drug safety started late. Its foundation is weak so the supervision of food and drug safety is not easy,” (via Former SFDA chief executed for corruption).

Another senior government official echoed similar sentiments

“As for the death penalty, different countries have different situations and different cultural backgrounds,” (said) Gan Yisheng, head of the party’s Central Commission for Discipline Inspection.

“We still execute people who have committed serious economic crimes on consideration of China’s national condition and cultural background.” (via Execution defended as graft trial nears – The Standard).

After 30 years of sustained, public executions, all that the Chinese Government seems to have done is created a public appetite for more such killings and executions.

Justice that seems to have death and killings as its sole weapon. (Cartoon by Clay Bennett; courtesy - claybennett.com). Click for larger image.

Justice that seems to have death and killings as its sole weapon. (Cartoon by Clay Bennett; courtesy - claybennett.com). Click for larger image.

An end in sight?

How do the Chines see a solution to this situation?

There is considerable disbelief in ‘political re-education’ – a hall-mark of Maoist system of criminal ‘reform’.

If political education is the answer to rampant corruption, then all the propaganda courses we are constantly exposed to would have solved the problem by now. While so many people are “beheaded,” executives at all levels are still determined to brave death by trying to (benefit from) corruption (via Blood, Justice and Corruption: Why the Chinese Love Their Death Penalty – TIME).

Press, elections, democracy?

More Western ideas are more acceptable in China.

It is thus obvious that the reason for corruption lies elsewhere, in the fact that there isn’t enough control and supervision over public power, and in the lack of democratic elections and freedom of the press. (via Blood, Justice and Corruption: Why the Chinese Love Their Death Penalty – TIME).

Some of China’s commentators believe that

It is also time to rope the mass media into this war. The Zhejiang provincial committee of the Communist Party has made a good start by expressly empowering its local media to scrutinize and keep an eye on public officials.

Educational ads should be telecast on TV, broadcast on the radio and published in newspapers, something that Hong Kong’s Independent Commission Against Corruption has been doing for a long time. (via Opinion: Corruption has to stay capital crime).

If democracy and free press were the answers, why is corruption so rampant in India. Not to mention the West?

People caught up between the State and gangs protected by the State. (Cartoon by Morparia). Click for larger image.

People caught up between the State and gangs protected by the State. (Cartoon by Morparia). Click for larger image.

Echoes from India

China-style killing-and shooting has some admirers of in India. If the Chinese were successful at curbing corruption, it would be worth studying their approach. Have the Chines succeeded?

Anna Hazare, Baba Ramdev have captured the media’s attention – and possibly a significant part of ‘middle-India’ also. What Anna-Baba are proposing to impose is a ‘Hindu’ shariat in India. Cut of hands, legs, heads. Flog people. Nail them and jail them. The works. How can India remain backward?

Chetan Bhagat, an admirer of Chinese style anti-corruption campaign, and another darling of ‘middle-India’ has become a Hindu Shariat supporter. Since powerful politicians cannot be ’embossed’ or ‘tattooed’, Chetan Bhagat wrote on his forearm – मेरा नेता चोर है mera neta chor hai (My leader is a thief). He writes,

Contrast (India) with China where the punishment for the corrupt can be death by firing squad. Not only that, the family of the convict gets a bill for the bullets, just to emphasise the point that no one steals the nation’s money. (via Of Ravages And Kings – Times Of India).

(Cartoonist - Kirk Anderson on the Enron Case). Click for larger image.

(Cartoonist - Kirk Anderson on the Enron Case). Click for larger image.

Root of corruption

The source of corruption is power. Raw, unbridled power. That the modern State enjoys. More laws, more corruption, more crime. More police, more crime.

Any steps (like the Lok Pal) that empowers the State with more power will increase corruption. Reducing powers of the State reduces corruption. By eliminating monopoly, the Indian telecom sector saw a massive decrease in corruption. The opaque Indian railway ticketing system of the past encouraged corruption. That has been eliminated by bringing in transparency, through computerization. Like this Chinese commentator says

To tackle corruption at the roots, prevention is more important than punishment. China needs to thoroughly review its institutional system for preventing and combating corruption and for identifying and plugging loopholes. Corruption in many cases has been the result of power abuse. So we have to think of ways to curb such powers. (via Opinion: Corruption has to stay capital crime).

The three main areas where the State comes in is in land, wealth (as in gold), and people-to-people interaction. By injecting itself in the middle, the State creates abuse of power opportunities – leading to corruption. By arrogating the power of law and justice to itself, the State creates injustice. The end of corruption will be systemic change. End of Desert Bloc ideas. भारत-तंत्र Bharat-tantra has delivered corruption free regimes for centuries – and can do it again.

People get ready. Time for भारत-तंत्र Bharat-tantra.

Indian Railways – The British Legacy

Posted in British Raj, History, India, politics by Anuraag Sanghi on August 26, 2010

 

Romancing the Raj

Modern Indians carry this rather ignorant impression that Indians railways was a departing gift by the British to independent India. This is especially true of post-Independence, 2nd and 3rd generation Indians, who never travelled or saw the colonial railway system trains.

This impression is aided and abetted by Western media too. Recently, Robert Kaplan writing in The Atlantic gushed how the “British, by contrast, brought tangible development, ports and railways, that created the basis for a modern state” of India.

As though, India could not have ‘bought’ or developed railway technology on its own – from or without the British. After all India has developed a significant air-transport system. Or the comprehensive road network – which is getting further expanded and upgraded.

A further examination of facts exposes a completely different picture about the British claims about Indian Railways also.

Indian Railways

After the boycott of the Simon Commission, from 1927, and the death of Lala Lajpat Rai (Nov 17, 1928), it was clear (especially to the British) that their days were numbered. Britain enacted The Government of India Act, first in 1919 and then in 1935. Facing problems at home and abroad, the significant British interest in India was extraction of remaining wealth in Indian hands.

Elephants were widely used instead of engines - due to engine shortage and easier maneuverability of elephants.

Elephants were widely used instead of engines – due to engine shortage and easier maneuverability of elephants.Click on image for larger picture.

Indian Railway system too suffered  from this approach.  Especially after WWI, the Great Depression  and the currency crisis, starved of investments and renewal, Indian railways suffered.

During WW2, nearly 40% rolling stock from India was diverted to the Middle East. More than 50% of the track system was the outdated metre gauge and narrow gauge. Track systems were nearly a century old. 40% of the railway system went to Pakistan. 32 of the forty-two separate railway systems operating in India, were owned by the former Indian princely states. More than 8000 outdated steam engines were used as motive power – and less than 20 diesel locomotives were in use. Apart from elephants and people – called as ‘hand-shunting’ in Indian Railways lingo.

So much for the British gift of railways to India.

Rampant extraction

The railways run by the Indian princely states became party to the collusive price fixing systems. Like this extract (linked to the right) shows, all the business went to the British engineering yards. To this add the guaranteed returns systems, and what was achieved was something else.

“The guarantee system did not encourage cost control, and, at an average cost of BP18,000 per mile, the Indian railways were some of the costliest in the world. (from Another reason: science and the imagination of modern India By Gyan Prakash, page 165).

Indians took to railway travel – quickly, easily and in large numbers.

Indians enthusiastically took to train travel from the start. This confounded the arguments made by some who suggested that considerations of caste and religion would lead many South Asians to shun train travel because they would not agree to the close personal proximity sitting or standing in the coaches required. Women for reasons of modesty or demands of seclusion were expected to be particularly resistant to rail travel. Others argued that poverty would make travel by train impossible for all but the well-to-do. In the event many of all castes, classes and gender traveled by train. (from Engines of change: the railroads that made India By Ian J. Kerr.).

Even though the poor Indian passenger was more than 80% of the traffic, he was always short-changed.

Third-class passengers quickly became and remained the most numerous passengers and the railroads’ largest source of revenue from passenger traffic. High volumes-87 percent of passengers carried in 1902 traveled in third-class-more than compensated for low fares. (from Engines of change: the railroads that made India By Ian J. Kerr.).

Safety last

Starved of investments and maintenance, the railways infrastructure at the time of British departure was crumbling. Colonial British (subsequently, the Indian also) response was to affix the blame onto the employee at the lowest rung and move onto the next one accident.

Elephant shunting a train on the Bengal-Nagpur railway. Picture quality makes it probably from WWII period.

Elephant shunting a train on the Bengal-Nagpur railway. Picture quality makes it probably from WWII period.

Post-independence India continued with this practice – till LB Shastri called a halt to this. In 1956, the Madras-Tuticorin express plunged into a river when a bridge at Ariyalur (Tamil Nadu) was washed away in floods. 144 (some records suggest 156) passengers died. Shastri resigned from the Union Cabinet – claiming moral responsibility for the railway accident.

This resignation saw LB Shastri become a political legend. This (resignation) also changed the mindset of the Indian Railways. After fresh elections of 1957, one year later, he was re-inducted into the Union Cabinet.

Steadily, over 30 years, Indian railways infrastructure was upgraded. And accidents decreased.

But the problems did not end there. The Great Gift of the British to India, railways was not only a vast scrap heap of metal, but a den of corruption – as documented in the Railway Corruption Enquiry Committee (J. B. Kriplani), 1955. Corruption and safety took another 50 years – by the 1990’s, by when the the entire railway system was modernized and computerized.

What we see today

In 1952, it was decided that IIIrd class passengers deserved fans and light. It took another 7 years to implement this decision. Elephants used for shunting wagons, box-cars, finally got a respite after WDS-4B shunters were introduced by Chittaranjan Locomotive Works in 1969. Safety bars in windows were introduced on night trains in a phased manner over the 1970s. Till then, most trains had open windows leading to passenger-safety issues. Earlier, it meant “getting into a third-class general compartment — through the window, literally pushed in by someone on the platform. Well, now all the windows have a grill provided for the safety of the passengers”.

Extract from A history of modern India, 1480-1950 By Claude Markovits, page 433. Click on picture for larger text.

Extract from A history of modern India, 1480-1950 By Claude Markovits, page 433. Click on picture for larger text.

It took a non-Congress Government in 1977 to change the face of Indian Railways. Prof.Madhu Dandavate, the Railway Minister in the 1977 Janata Government started the railway renaissance in India. 3rd class railway travel was abolished. Wooden-slat seats were abolished. Cushioned 2nd class seating system was made minimum and standard. Train time tables were re-configured. Reservation systems improved. Railways started getting profitable.

The de-colonization of Indian Railways began effectively in 1977 – 30 years after British departure. Symbolically, that was also the year that the Rail Museum was set up. The progress after that has been remarkable. Without going into the merits of safety and comfort, today Indians can travel at significantly lower cost. For a US$5, an Indian can travel for 1000 km – compared to nearly US$100 for 1000 km (gold-adjusted dollars).

All this when only 25% of Indians travel by rail at least once a year.

The benign British

Should we complain so much, if we inherited a decrepit, run down, accident prone, investment starved railway system with outdated technology from the British – though financed by loot from India?

OLD FAITHFUL: An 80-year-old elephant shunting a Railway boxcar in 1945 , Picture courtesy - The Times of India, Dated 27th February, 2010

OLD FAITHFUL: An 80-year-old elephant shunting a Railway boxcar in 1945 , Picture courtesy – The Times of India, Dated 27th February, 2010

Even though it took India 40 years, to modernize the colonial railway system, we should be thankful. Remember, they could have uprooted the rails, and taken away the wagons and engines. After all, Indian Railways was the biggest scrap iron collection in the world at that time.

Till Lal Bahadur Shastri’s resignation – the poor Indian railway-man was routinely blamed for railway accidents – by his British, and later the Indian bosses also.

 

Metrics Of Corruption

Posted in Business, Current Affairs, History, Media by Anuraag Sanghi on April 3, 2009

What you measure is what you manage.

Nixon and Tanaka

Nixon and Tanaka

Measurement of scandals and corruption is a particularly thorny issue. Due to the lack of a common measure, transnational comparison  of scandals is currently impossible. Was the Lockheed Scandal more egregious than the Harshad Mehta Scam?

Was Watergate more dangerous than The Lewinsky Affair? How does one compare corruption across nations and time periods?

Some scandals captured, much more than others, national and international attention. To understand the nature of scandals, we will examine three such scandals. These scandals were seen as particularly flagrant – and damaged the careers of the concerned politicians.

America’s Watergate scandal

President Nixon was forced to resign over this scandal. Two Washington Post journalists were tipped off by “Deep Throat”, William Mark Felt, Sr., an FBI official.  Disturbed by the sidelining of FBI insiders by President Nixon, Felt kept the two journalists updated. The scandal erupted when burglars, supposedly at President Nixon’s behest, were caught trying to bug the site of the Democratic Party Convention. Watergate was projected as a major ‘threat to democracy’ – and the resultant outrage was captured by films and books.

The two journalists were lionized by the American media – as well as international media. The media took care of their own, even though the role of media was only minimal. Under media pressure (and the threat of impeachment), ‘Tricky Dick’ Nixon resigned. Vice President Gerald Ford succeeded and granted Nixon a full pardon. Compared to the shenanigans in the Kennedy regime, Watergate was tame. Yet the media circus made Watergate appear as Armageddon.

Japan’s Lockheed scandal

1974. The Japanese Prime Minister, Kakui Tanaka, resigned, when it was found that he (and some politicians) had allegedly taken bribes to buy fighter jets from  Lockheed Corporation, USA – an incident that the ‘Japanese poetically refer to as kuroi kiri (black mist).’ Though, Tanaka resigned from Government, he remained a powerful politician in the LDP and remained king maker till his death.

After the revelation of the scandal, “Bungei-Shunju’s circulation has jumped 10%, and collectors are now paying up to $60 for a copy of the historic November issue.” The interesting part was the ease with which Bungei Shunju was able to cover this story – and the complete lack of opposition.

The team encountered no political interference. Says Tachibana: “We went to tax offices and census registration bureaus, bowed to the officials, paid a modest fee for copying and came back with a treasure-house of information.”

Was it the amakaduri, or was the faceless MITI, who gave a unspoken go ahead for this bit of muck raking journalism? In a usually compliant Japan, such adventurism raised questions!

India’s Bofors scandal

After Indira Gandhi’s assassination, her son, Rajiv Gandhi won a stunning 400 seat majority in India’s Parliamentary election (1984) – giving him unprecedented power. India had high hopes from him – which he partly fulfilled. India’s telecom revolution, software success owe their success, partly to initiatives during that period.

India’s rising crude oil output from Bombay High gave Rajiv Gandhi elbow room, which he utilized for increased imports. India’s historic rupee overvaluation, corrected during and after his regime. From roughly Rs.18 to a dollar, by 1995, Indian rupee depreciated to over Rs.35 to a dollar. But what finally did him in was the Bofors scandal. It was alleged that Bofors AB, paid off various people involved in the finalization of the howitzers for Indian armed forces.

Post Bofors, the resignations of Arun Nehru, Arun Singh and VP Singh, complicated by the strained relations between the Bachchan-Gandhi families, coupled with Rajiv Gandhi’s weak defense, ensured that he was guilty in public opinion – and he lived and died under the shadow of Bofors. Added, was the aggressive and strident press campaign by Chitra Subramaniam and N. Ram of the normally quiet Chennai-based The Hindu newspaper.

Other scandals

Of course, there were many other scandals – bigger or less famous. Emperor Bokassa’s diamonds to Valery Giscard d’Estaing or the Mark Thatcher shenanigans. Hardly anyone remembers Valery Giscard d’Estaing and Bokassa’s diamonds. But none captured the public bandwidth the way these three scandals did. Hence, it would be a appropriate to examine the elements of these three scandals to understand create metrics for such scandals.

Some other sample cases

To measure the magnitude of the scandal incident itself, it is proposed that the unit of measure can be named as a cBofors (constant Bofors). And the measure of individual corruption can be a cTanaka (a constant Tanaka).

Morarji On Rushmore

Morarji On Rushmore

This metrics also makes clear why I have devoted so much space to Morarji Desai in the past. Morarji Desai’s gold policy has been examined in previous other posts – especially its contribution to: – One, the greatest crime wave ever in human history.; Two – the survival of Bretton Woods for 25 years;

St.PT Barnum, my guru, mentor, friend, philosopher, guide et al, in matters of propaganda, also believes that Morarji Desai must be elevated to Mount Rushmore.

Of course, there was the old case where Seymour Hersh alleged that Morarji Desai was paid of by the CIA. So, I will not repeat myself here.

The four elements that are common in these three scandals were:-

  1. Country Risk – These incidents became scandalous as the future of the nation in all the three cases was seen as jeopardized. The Bofors guns were seen as more critical and hence the outrage. The Coffingate during NDA-George Fernandes was seen as ‘almost benign corruption.’
  2. Cost & expense implication to the tax payer – In all these cases, it was seen that the tax payer was footing the bill – for something illegitimate.
  3. Social Impact – In some cases, the effect is a perceived corollary – and in others, the incidental change is direct and visible. After the Harshad Mehta Scam, a lot of people lost money. After the collapse of Lehman Brothers, the financial crisis in the US was exacerbated.
  4. Beneficiary toxicity – Who gains from these scandals also changes the perception. If a harmless broker like Harshad Mehta benefits, it does not create the outrage that would result if the beneficiary is say, Dawood Ibrahim.

Based on these four elements, we can rate each rate each scandal. As an index, I would propose two measures.

For instance, a scandal like the collapse of Lehman Brothers measures at an impressive 15 kiloBofors – but Watergate weighs in at small 2.21 cBofors. Similarly, AR Antulay, is possibly (say) 7 deciTanakas, but Kennedy is clearly about 5 kiloTanakas.

This is, of course, a dynamic metrics system, which will allow new elements with weights to also come in. It will allow political ‘decision makers’ and ‘business leaders’ to choose between ‘lesser evil’ based on data, instead of gut feel.

One immediate benefit. Such a measurement system immediately makes one thing very clear. Media clearly distorts the gravity of the issue. A Watergate which was a minor political storm in an American tea-cup, which affected  few politicians was blown up (and out) of proportion. But the media ignores, (and understands much less how) Morarji Desai’s support to Bretton Woods with his gold policy condemned billions to lives of poverty.

Blindsided Indians

Possibly more people in India (at least the English press) know about Bob Woodward and Carl Bernstein (who wrote the) Watergate, than about Chitra Subramaniam and N Ram – who ensured that all details of the Bofors Scam came out. Sucheta Dalal, who broke the Harshad Mehta story has become a female Don Quixote – I some times fear.

And of course, nothing happened to the Lockheed and the Bofors.

Incident Beneficiary toxicity Cost & Expense Country risk Social impact
Morarji Desai Gold Policy
Watergate scandal
Lockheed-Tanaka
Bofors (index incident).

c(B)

c(B)

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India’s Silent Revolutionaries

Posted in Business, Current Affairs, History, India, Media, politics, Satire by Anuraag Sanghi on December 9, 2007

“Mr. Bond, they have a saying in Chicago: “Once is happenstance. Twice is coincidence. The third time it’s enemy action.” Ian Fleming, in Goldfinger.

In 60 years of post-colonial India, 3 significant developments will win the award for deepest impact – but least appreciated or known.

Potti Sreeramulu - Spirit Of The Linguistic State Reorganization (Image source - hindu.com). Click for larger image.

Potti Sreeramulu - Spirit Of The Linguistic State Reorganization (Image source - hindu.com). Click for larger image.

1953 – The Language Genie

An issue on which the colonial rulers ‘set up’ the new rulers of India for failure was on the contentious issue of language. Rightly, the colonial rulers pointed out that there never has been a successful country with so many languages.

Nehru, Subhash Chandra Bose were all for one national language – much like numerous western countries, whose success they so wanted to rival or exceed. And the language of their choice was Hindi.

What kept Europe divided, amongst many things (not that they need help), is language. Belgians (a country with 1 crore population; smaller than Chennai) are being prepared for probable split between the Flemish and the French speaking populations. Canada has been at the precipice for 100 years – torn between two languages. The Balkans , homeland of Alexander the Great (who wanted to make one world), have been at each other for the last 80 years – after they became independent of the Ottoman Empire.

There never has been a country, in modern history, which has had 2-3 languages, without splitting at the seams. One man, who is forgotten and who made a difference was Potti Sreeramulu. A believer and follower of Gandhiji, he pushed Nehru for re-organising India on linguistic lines. Nehru vacillated. Potti Sreeramulu, like Gandhiji, went on ahunger strike. Nehru ignored Potti Sreeramulu’s hunger strike. Potti Sreeramulu died.

The ground swell of international (and also domestic) opinion forced Nehru’s hand. He was left with little choice. And India has since then been administered on linguistic lines. This has given enough space for every sub-culture – without diluting their renewed Indian identity.

In the meantime, Indians have become adventurous in their integration. Idli and Dosa are a part of a Punjabi households and salwar kameez have become popular in Kerala. Hindi film industry is second only to Telugu film industry.

If India had followed colonial administration’s advice of one national language, Tamil Nadu would definitely have seceded in the 1960’s. Ask Sri Lanka. I do hope that Malaysia does not make the Sri Lankan mistake.

A Young PV Narasimha Rao1991 – Problems From Outside

Rajiv Gandhi came back from Sriperumbudur in a coffin. Assam problem seemed beyond resolution. The common Indian had given up on Punjab. The 1984 anti Sikh riots only strengthened the negative outlook. Kashmir was simmering. The Indian electorate had given a fractured mandate. A hung Parliament.

Indian economy was going downhill – and nothing seemed to get the economy out of the “Hindu rate of growth”. India was on the verge of a debt default. Indian debt was downgraded by western rating agencies. The Asian Tigers had done wonders – under US tutelage. China was furiously reforming – and succeeding at it. USSR India’s faithful ally, was breaking up. Corruption was endemic and every politician was an Untouchable – nobody or anything could touch them. There were no laws. Many across the world shook their head and could be heard saying, “I knew … I told you … It had to happen …”

All bets on India were off.

A “intellectual” politician, was called back from retirement – to become Prime Minister PV Narasimha Rao. Forgotten today.

By 1995, he set up India for today’s growth. In a matter of 4 years, he cleared 40 years of cobwebs. The direction that he put India on has been now been followed for more than 15 years – with great success by more than 5 Prime Ministers. His biggest success was accountability. Heads of administration do not appear in a court of law – which PVN did. Election Commission, CAG, Supreme Court acquired fangs – earlier docile shadows of their purported design of BR Ambedkar.

Naidu And Vajpayee1992 – The New Paradigm

One of India’s chronic under performer, Andhra Pradesh got a new Chief Minister – N. Chandra Babu Naidu. In the next 9 years, Andhra Pradesh moved in the Top 5 investment destinations.

Technology savvy, focused, driven – he changed the political idiom in India. State governments now pattern themselves along Naidu’s lines. Privatisations (instead of expanding public sector), tax cuts (instead of increases), administration automation (instead of increased recruitments), hand picked bureaucrats with a development agenda (instead of personal loyalty agenda earlier) were the cornerstones of his strategy. His state administration reform agenda convinced PM Vajpayee to commend Naidu’s template to other state governments to follow.

The Source

These 3 reformers were from Andhra Pradesh – carved out of the earlier Nizam state. The Nizam state was the largest Indian state (in Europe or any other part of Asia, it would have been a few countries) – ruled by an Indian ruler. The last Nizam of Hyderabad, considered at one time the richest man in the world, was also a very simple man. Famously, he never threw away half smoked cigarettes – frugality for world’s richest man. Especially, when other Indian Nawabs out did each other with their spending and peccadilloes in London and Paris.

Andhra Pradesh (most of) was not administered by colonials. Hyderabad is the largest modern Indian city – without a history of Colonial administration. Kolkatta, Chennai, Bangalore, Mumbai, New Delhi were cities ruled by Colonial India administration before the creation of the Indian Republic.

Indian consumer companies test market their products in Hyderabad frequently – as it lends itself to the Indian idiom. Other major metros (with a history of colonial administration) many a time give a “false positive”. Andhra Pradesh supports the world’s largest film industry – bigger than Hollywood and of course, Mumbai film industry.

Two significant creative minds were adopted by Hyderabadis as their cultural mascots. One was Allama Iqbal of “सारे जेहान से अच्छा हिंदुस्तान हमारा” “Saare Jehan Se achcha Hindustan Hamara” fame.

Chirkan, the second mascot, is the “poet” of dirty ditties. Chirkan was the irreverent break from the feudal and colonial Indian mindset – before the Indian Republic.

His rhymes on Qutub minar (a phallic symbol of feudal /colonial majesty of another era) have been repeated by every school child as his very own. He was feted at cultural events – and was a legend in his lifetime. His “sher” on a princess (the Nizam’s daughter) is repeated by schoolboys even today with raging hormones. It is to the Nizam’s credit that Chirkan was not persecuted – but given a token punishment of banishment from Hyderabad.

Forgotten today by the mainstream, Chirkan’s books still circulate in the underground. Chirkan’s rhymes and jokes spread to all of India. 75 years later, every teenager makes his rites of passage with Chirkan’s jokes. Most of Mumbai film industry’s dirty jokes are a take off on Chirkan.

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