If you had asked this question to
great economist Joseph Shumpeter he would have suggested that they are the
victims of the ‘creative destruction’. He suggested the idea of ‘creative
destruction’ as the new technology emerges; old get replaced with new one. For
example, before the advent of industrial revolution, British society was
dominated by aristocracies and local elite whose main source of income was form
landholdings. With the arrival industrial revolution, new system emerged with
new workers, new output and life style which made agriculture less profitable
as workers moved to industries causing wages to rise. Thus, they replaced with
new system. Similar development can be seen in kerala also. With the economic
prosperity brought about globalization and subsequent migration of labor to
other parts of the world especially to gulf regions, considerable change in the
socio-economic profile of the people occurred. This brought about a paradigm
shift in the socio-economic perspective as well as attitude of the people in
complete contrast with the era of Illams. For instance, while the vast stretches
of farm land under the ownership of the illam in the remote areas away from the
roads were considered to be a matter of prestige during the glorious
period of illams, today what matters is barren land often close to National
Highways which can be used for realty business. This apathy to agriculture generated
by the socio-economic freedom unleashed by the economic prosperity also made agriculture
not only less economically attractive as happened in Britain but also made it
tenuous to keep people under serfdom. In the past, while illams saved as much money
as possible in their shelves and thereby saved for the future, today people are
living with credit cards and thereby dis-saving for the future. Illams were not
trained as well as accustomed to this type of socio-economic storm and
therefore, they were sidelined. Of course, I do not believe that this
destruction is fully creative, but partially as it enabled people to stand on
their own legs, at the same time it has caused considerable destruction to the
agriculture, health of the people and as
well as the ecology. Thus, illams are victims of a partially destructive and
partially constructive destruction.
Thursday, May 8, 2014
Wednesday, May 7, 2014
The Reality behind Reality Show
Reality shows are one of the major items in the basket of
numerous television channels today. A close look at this recent phenomenon
shows how best arts, culture and politics can be effectively synthesized to mobilise
required energy to land up in the profit maximizing landscape of economics. Of
course, even though this kind of a marketing strategy need not be applicable to
all television channels, some of them operating in the frontiers of Malayalam can
be seen resorting to this kind of tactics. To be sure, travel across Kerala and notice the
ingredients of the tall advertising canvasses in major cities preferably in the
head quarters of the districts regarding such reality shows, you can very much convince yourself of this
business strategy. The strategy is simple: choose candidates based on names,
promote them during the show and market them according to the appeal of their
names (culture) across the state so that you can indirectly increase your
viewership by appealing the cultural sentiments of the viewers and thereby your
profitability. For instance, select and promote a Hindu, a Muslim and a
Christian and erect tall advertising boards featuring the Hindu in the city of
Calicut, the Muslim in the head quarter of Malappuram district and Christian in
the district of Kottayam. Thus, the ongoing reality shows presents a classic
example of using arts, culture and religion for the promotion of business
motive, at least some of them in Kerala. This example shows not only the
mindset of the business men but also it further sheds light on the mindset of
the people as a whole reflecting how
divided they are. How many of the viewers are really aware of this kind of a
naked reality of such reality shows?
Tuesday, May 6, 2014
Politics of Lightning
According to recent
statistics available, more than 100 people die on an average in Kerala every
year as a result of lightning. However, what surprises me is not only the
enormity of the catastrophe but also the apparent ignorance or negligence about
this annual catastrophe in Kerala. If so one can justifiably ask a naïve
question as to why this repeatedly happens and at the same time it did not
attract required attention not only from the govt but also from the general
public. Before coming to the possible answer this question, I would like to
reflect on a possible criticism to be leveled against me for dragging govt and
general public into this kind of a natural phenomenon which is beyond the
control of human being. Obviously I am not contending that govt or general
public must control lightning from happening as it is impossible. Instead, my
contention is that both govt and people have a joint responsibility for not
getting this kind of perpetual catastrophe the required attention so that, even
though, we are not able to control lightning, we can reduce the extent of the
causality as much as possible by adopting measures such as spreading the
awareness of the extent of the problem among the people and thereby encouraging
them to undertake precautionary measures as well as helping the people even
financially to make adequate precautionary measures not to get electrocuted by
way of installing available technologies capable of dampening the impact of
lightening in the households.
Now let us foray into
the possible answer to the question as to why it did not fetch deserving
attention both at the level of govt and at the level of the general public so
far even after Kerala has been witnessing this catastrophe annually. Two
factors are responsible. First, being lightening from the so called God,
opposition parties cannot effectively blame the ruling party for this
unfortunate event and thereby make political dividends based on this as they
will have to blame the god for being responsible for this unfair practices
which, for sure, instead of encouraging the people to rally behind such a
leader, will force them to take him/her to the nearby rehabilitation centre for
mentally sick. Second, we being reared in a democratic setting has got somehow
programmed or habituated to be only concerned about large numbers or majority
rule and therefore, the sporadic incidents of the lightening claiming life of
individuals in a sparse manner often fails to make impact in a system which is
already programmed and accustomed to the simple majority-rule in which what
matters is large numbers rather than the least numbers. In other words, in the
absence of any strong political compulsions and leverages like the killing of
T. P Chandrashekhar, our society including the rulers of that society will
close their eyes towards this kind of sporadic less politically compelling and
appealing deaths. To make my point clear, let me draw attention to one
illustration as the political storm that Kerala had witnessed over either the
killing of Rajan in 1970s or the death of the people by consuming illicit
liquor in the past. Obviously, I have a
question here why Rajan’s issue or liquor tragedy certainly killing people less
than 100 made political storm in Kerala whereas loss of life to more than 100
people annually failed to elicit required attention. Again, my legs will pulled
here arguing that Rajan’s issue or liquor tragedy was a political issue or a
political killing and that is why it created political storm. In my view it is
the cruelest interpretation of what is politics. Politics is not about killing.
It is about the choice of the rules to govern the people for their welfare (if
it is in a true democracy). Thus, instead of killing people under the aegis of
politics, the true politics is all about saving the people from either being
killed or being died prematurely.
The failure of the govt
and people to give required attention to the issue of lightening-death will be
clear if and if only if we look at this issue through the eyes of true politics
I have described above, instead of looking through the troubled-eyes of killer
politics. If you look politics with such a view, you will realize why Rajan’s
case or liquor tragedies attracted political attention. For, it provided ample
opportunity for blame-game for both opposition and ruling parties and thereby
it provided a scope for reaping political dividends. If not, even a single
death, let alone 100 deaths, as a result of the lightening should have received
at least the same socio-political attention as did in the case of Rajan or
liquor tragedy because for a single person his/her life is the precious one irrespective
of whether he/she is getting killed because of bad politics or bad weather indicating
that to attract required attention to this issue, you need not wait to get
entire malayalees killed on account of lightening.
Thus, the point I am
making is NOT that the issue of death or killing should be judged along the
principles of time, space and numbers, instead my point is that in a true
democracy govt has to protect individuals not only from the detrimental effects
of the actions or inactions of other people, but also govt has to protect
people from the vagaries of the nature like lightening, Tsunami, Katrina etc.
Thus, our rulers who are so keen to declare judicial inquiries to look into the
death of a single fellow or few fellows or our rulers who persuade people
through media to purchase a ‘karunya’ lottery for the social cause or our
rulers who subsidize the solar panel to encourage the habit of using renewable
energy must also apply their mind to the sporadic incidents of lightening
causalities by way of increasing the awareness of people about protective
measures or by providing protective tools to the people to protect them from
this kind of shocking incidents. Govt is
not just about collecting taxes and distributing it to various departments mostly
to be distributed in the form of salaries to the boot-lickers of the same govt.
Govt has to rule the people least and
live among the people the most. However, let me reiterate here one thing that
my criticism of govt or politics should not be misconstrued as if targeted only
against a group of people like our professional politicians or trade unions.
Instead, in my conception, the state or govt is the collective responsibility
of each and everyone manifested in the form of useful mechanisms, systems,
institutions, rules etc. Therefore, the failure of rulers otherwise indicates
the failure of people or the behavior of the rulers is the reflection of the
behavior of the people whom they represent.
Monday, May 5, 2014
Contrasting Industrial Economy and Knowledge Economy
As I mentioned in a previous
post, world is drastically shifting to a modern knowledge economy from a
traditional industrial economy in which the basic principle of economics remains
intact. I pointed out then that be it industrial economy or knowledge economy,
the underlying driving force of these economies is the selfishness of human
being which appears in a contrary shapes depending upon the context. When it
comes to industrial economy, people satisfy their selfishness by restricting
others from sharing their assets like land, industry or gold whereas under
knowledge economy, people satisfy their selfishness by sharing their asset - knowledge-
with others. That is, what matters ultimately is the selfishness of the human
being which is originally an outcome of their
realization and comprehension of the complex reality that they can’t eat
gold they have accumulated or they can’t
swallow the vast stretches of land they have acquired or they can’t chew large
piles of currency they have shelved and therefore, they were eventually developing
a mental capacity to translate this physical inability to their mental satisfaction by making use of
accumulated assets to satisfy their selfishness. That is why people are vying
with each other to accumulate their wealth. The more the wealth they have, the
richest they will be not in their eyes because their stomach did not actually expand
with the expansion of their wealth, instead they are richest in the eyes of others (non rich) not in the sense that with
the increase in their (riches’) wealth others (non riches’) stomach will be
expanding, instead others (non riches’) stomach will be contracting which
otherwise implies that the stomach of the richest will ideally be expanding
implying that richest attains a distinguished status in the society about which they are
proud of and it is this proud that fuels them to carry forward their endeavor
to become further rich and thereby much more distinguished. I am sure that at
least few may disagree with me in this endeavor to analyze the relevance
economics just based on the size of the belly of the people. Of course, they
may appear to be sensible to another few who are opulent and since they are
opulent their concern would go beyond stomach to Rolex, Ferrari, Johnny Walker
etc whereas for a majority here still what matters is the expansion and
contraction of their stomach. Given this, I think it is still sensible to
evaluate the economics today based on the size of the stomach and the capacity
to manage it.
What we have seen above
is the obvious dissimilarity between industrial and knowledge economies in the
form of restraining others from acquiring what rich has like land in the
industrial economy while sharing with others what rich posses in the form of
knowledge in the knowledge economy and also we have seen how this dissimilarity
can be traced back to the original ethos of economics - selfishness. However, a
deep look into the structure of past industrial economy and modern knowledge
economy will also reveal an interesting similarity between them in the form of private
property rights. As private property rights were used in the past during industrial
economy and even today to restrict others from enjoying the benefit of your
wealth, today in this knowledge economy too, a variant of the same property
rights namely intellectual property rights (IPR) such as patents or copy rights
are used to restrict others from enjoying the benefit of the asset you posses
in the form of knowledge. Of course,
here we cannot argue that entire benefit is restricted to others in this
knowledge era through IPR. Instead, here we have to make a distinction between
past wealth and present wealth. In the past, wealth in the form of land, gold
etc had only economic appeal or component compared to the modern asset - knowledge,
apart from its economic appeal or component; knowledge has got an intrinsic appeal
of enlightenment or intrinsic component of information. Therefore, while the
modern owners of the knowledge restrict others from enjoying the economic
component of their knowledge through IPR as did in the past, they share the appeal
of enlightenment with others through, for instance, blogs or Youtube or books.
Again as I pointed out,
this kind of division of what should be shared and what should not be shared is
dictated by the selfishness of the human being. That is, in the case of
knowledge, those who possess knowledge today come forward to share its power to
enlighten people as a part of their selfishness that they can boast of the fact
that others got empowered through his/her knowledge which will increase his/her
image as a knowledgeable person attracting recognition from others. At the same,
others are restricted to get empowered economically though his/her knowledge as
he/she is aware of the fact it will ultimately boomerang on himself/herself as
others will be economically empowered in due course of time if he/she share the
economic component of their knowledge with others leading to his/her selfishness
getting hurt as he/she would be, at best, one among many equals while his/her
selfishness is so eager to put him/her on the top of the list as, for example,
the richest person of the world. Thus, in no way, the modern knowledge economy
undermines the traditional principles on which the discipline of modern
economics is built, despite certain superfluous camouflage.
It is here the
practical long term global significance of the Joseph E Stiglitz’s view on the Intellectual
property rights like patents, copy rights should be understood as he has
sounded alarm regarding the detrimental effect of current system of patenting
on the developing and poor countries in his book making Globalisation Work. His argument for a fare patenting regime
was similar to what I have demonstrated here. Stiglitz argued the current
regime of patenting dominated by rich countries should be reformed in such a
way that it will help the poor or developing countries to benefit from
spill-over effect of knowledge so that they will be empowered to innovate on their own as knowledge , innovation and technical progress
are the result of a virtuous cycle of sharing and collaboration of the past
wisdom with present across the spectrum and at the same time, the economic
interests of the innovators in rich countries should be protected without
getting their economic incentives for further innovation trampled upon. Stiglitz
observed that IPR have both cost in the form of incentives for monopolization
and benefit in the form of incentive for innovation and therefore, a
well-designed IPR requires balancing the costs and benefits. This is what
exactly I have described above. The economic component of modern knowledge
should be protected to safeguard the economic incentives of the innovator; at
the same time the enlightenment component of
the modern knowledge or innovation must be shared between all so that those who
are at the bottom of the innovation like developing countries can be empowered
to move up to the top. Therefore, finally, we will wind up this discussion reflecting on
the importance of the democratization of the global politics which shapes the
rules of the game at the global level so that a ‘give and take’ approach of
collaboration can be carved out for a better world tomorrow because in the
absence of a true democratic rules of the game at the global level, it is
impossible to bring this kind of a structural change in the global politico and
economic regime to the complete disregard of the plight of the helpless majority
of the world. Sunday, May 4, 2014
The Fallacy of the Democracy
At the very outset, I
would like to ask this question; can we justifiably expect justice from the
kind of democracy we have in India today which is heavily controlled by few
powerful at a time when a sizeable portion of India’s population is still
illiterates? How can we expect true democratic justice from those political
leaders who supply TV, cloth, cycle, even rice for Rs 1/kg to their voters on
the eve of election? How can we expect true democratic justice from such
leaders who replace their posts of Chief Minister, Minister, MP etc when they
get sentenced by Judiciary for crimes they committed while they were in power with
their wives or wards? Of course, I am not posturing that Indian democracy is
full of vices and evils with no elements of virtues. For instance, certain
legislations passed by current government like RTI Act, Land Acquisition Act
etc are remarkable piece of legislations as far as Indian democracy is concerned.
It is worth mentioning here that the oldest democracy of the world, USA, took
centuries since its independence in the year 1776 to pass a legislation called
Freedom Information Act in the year 1961 similar to our RTI Act whereas we took
just 60 years to achieve such a milestone in our democracy. However, there are
certain grey areas that politics will be wary of dealing with for the betterment
of the society. The best example is the field of education in general and
higher education in particular. How can we expect the political system infested
with aforesaid forces of evils to empower the minds and bodies of the ordinary
citizens by creating an environment in which they can get educated to the
highest extent possible? Aren’t such evil political forces smart enough to
realize the simple fact that if people at large are educated leading to
improvement in their political and civic consciousness which will ultimately
wash away the vote banks of such political parties? Obviously, that is why
they, instead of concentrating on such fundamental issues like education even
at a time when majority of Indians today are young waiting to be trained and
coaxed for a better socio-economic life through quality education, these politicians
concentrate on distributing cycle, TV or rice for Rs 1/kg which is finally served
to buffalos reared by such households to make use of plenty of rice available
at throw-away price. What makes us suspicious is the complacency noticed on the
part of the same govt which passed historic legislations as pointed out above
to push through some important educational bills pending before parliament as a
result of the strategic stalling of parliament by the opposition to change the
face of Indian higher education. Of course, govt would attempt to pull their
head out excusing the recalcitrant attitude of the opposition parties who
believe, in Indian democracy irrespective of parties, that their only duty is
to remain as road-blocks. However, this
excuse will have to be applied with a pinch of salt as the same govt did
everything to ensure that Telenagana bill is passed amid total chaos and
pandemonium in the parliament by opposition before the election as they are
smart enough to realize that it will help to reap its political dividends
during election. The question posed here is why this govt did not evince same
interest and alacrity to get educational bills such as Innovation University
bill which has been pending before parliament for years passed as it did in the
case of Telenagan bill? The answer is obvious; first, educational bill lacks
the charm to appeal to the sizeable illiterate Indian voters. Similarly,
politicians are aware of the fact that it will boomerang though not at present,
but in the future. How young India can afford such a knee-jerk policy at this
historical juncture. Today’s young India, if adequately trained and educated,
will be an asset of tomorrow or today’s shunted and blunted young India will be
a liability of tomorrow.
The emergence of AAP in
Delhi is the manifestation of the aforesaid boomerang that has struck at the
very face of those who initiated the moves that enabled the people of Delhi to
respond in a fitting manner. The AAP is a city based educated working middle
class phenomenon. Who created them? Obviously, they were the creation of the
very Manmohan Singh as a result of the economic prosperity that India
witnessed, at least in its cities, after the liberalization and globalization
of 1990s. These educated middle class also got politically conscious and
sensitive creating an impulse to question the anarchy going on around them in
the form of the rampant corruption which is also a by-product of both gloablisation characterized
by technological innovation (2G) and mutilated or truncated Indian democracy characterized by the dominance of regional parties which often clips the wings
of the main national parties to achieve
a pan-Indian perspective rather than misusing the available political wind-fall
opportunities for either personal or regional benefits, as often did by these
regional parties. Thus, the point I am making is that a phenomenon like AAP is
essentially the creation of the recent institutional and structural reforms
like liberalization and globalisation that India has witnessed as the very
champions of these reforms failed to recognize the possible long term socio and
political impact of these reforms as a result of their overly preoccupation
with possible economic impact of such reforms with an eye on vote bank
politics. This act also otherwise blunts the view of certain critics of the AAP
saying India has had seen similar political outfits emerging time and again in
the past and all of them also got eclipsed as the country moved forward and
therefore, AAP’s destiny will, in no way, be different from its so called
predecessors. This view is highly shallow in the sense that AAP, unlike its so
called predecessors as I described above, is the corollary of the structural
and institutional reforms that India was subjected to after 1990. Of course, I
am afraid that I will be countered showing the example of the so called
socialist revolution North India witnessed during 1970s under the leadership of
Jayaprakash Narayan However, it is quite
unfair to draw parallel between AAP and Jayaprakash Narayan’s revolution because
1970s upsurge was not an outcome of any sort of structural or institutional
changes in India except the fact that it was mainly an upsurge of people’s
anger against the draconian attitude of
the then existed India’s political establishment. Thus, if someone argue that a
phenomenon like AAP will be sustaining as indirectly indicated by the Time
Magazine’s recent survey probably held among educated city based people that
only Aravind Kejriwal is fit to become the prime minister of India compared to
other major candidates, we cannot completely disregard their view.
Therefore, what I am
advocating is not that India will remain to be a land of illiterates forever.
Instead, given the nature of current politics, we will be lagging behind
especially in the case of education. After having said all these, I also did
not subscribe to the view that it is only the professional politicians who are
our potential policy makers responsible for the pathetic state of the affair in
Indian higher education. Instead, it is an outcome of a tacit unsavory
collusion between the formal professional politicians outside the educational
system and the informal amateur politicians inside the educational system.
Therefore, our higher education, like anywhere else, can be saved only if we
break this unholy alliance between formal and informal politicians in the scene
of higher education in India implying that Indian higher education is eagerly
waiting for the emergence of another Aravind Kejriwal as nowhere in the world
change or transformation or revolution did not take place until and unless it
imposed forcefully and peacefully on the status-quo.
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