The slump in global stock markets since July has wiped out an estimated $5 trillion of wealth, five times the GDP of India. So, world inequality has fallen dramatically. Are poor people across the world celebrating the great reduction of global inequalities? Are socialists celebrating increased equality ? No, not at all.
But why not? For years, analysts have worried about rising inequalities in India. Rapid growth has sent the stock markets soaring, and several Indians have entered the Forbes list of top billionaires of the world. Simultaneously, 300 million remain below the poverty line. This stark contrast has evoked much outrage.
Prime Minister Manmohan Singh says that unless the poor participate in fast growth, uprisings could disrupt our nationhood - over 150 out of 600 districts are affected by Maoist violence. The same theme is echoed in a recent study of Asian inequality by the Asian Development Bank. The ADB chief economist has been widely quoted as saying that high levels of inequality disrupt social cohesion, and could lead to civil war.
If this were really true, then the stock market slump should have healed social tensions. An Indian Express story on August 12 estimated that the richest five Indians had lost more than $10 billion in the previous fortnight. The total wealth lost by all shareholders was $52 billion (Rs 210,000 crore), almost equal to the GDP of Bangladesh.
So, inequalities in India have fallen dramatically. Not even the most draconian tax measures could have reduced the wealth of shareholders by $52 billion.
But are the 300 million poor people of India celebrating? Are landless labourers in Bihar delighted that the wealth of the Ambanis has suddenly fallen by billions? Are the tribals of Chattisgarh and Jharkand joyous that the Tatas have become poorer? Are illiterate Dalit women, the most oppressed and powerless section of our population, ecstatic that the stock market slump has improved income distribution?
Of course not. And this has consequences for theories of social tension. Now that the stock market slump has significantly improved India's Gini coefficient of wealth, will Maoist insurgents in Chatttisgarh give up insurrection? Will ULFA in Assam cease its depredations because of greater equality between the people of Assam and those of Dalal Street? Will the militants in Kashmir become less militant because of an improved income distribution?
To even suggest this would be farcical. Yet that farcical notion is deeply entrenched in much socio-economic analysis. The millionaires of Nepal are deeply invested in Indian stock markets. Does the ADB think that their stock market losses, which have reduced inequalities, will ease tensions in the neglected Himalayan region of Nepal?
Economists focus on measures of inequality like the Gini coefficient. But ordinary folk have very different concerns. Bihar is the poorest state and Goa the richest, but the poor Bihari does not worry about the disparity. He knows that his travails are due to local politicians and mafia, not rich Goans. He is not interested in impoverishing the Ambanis, he wants to become rich himself. He welcomes a booming stock market that might bring investment and jobs to Bihar.
Many analysts think society is happier when inequalities fall and unhappier when inequalities rise. Really? In an economic recession, profits fall much faster than wages, so equality improves. But do the poor enjoy a recession , with its unemployment and weak wages? Not at all. They far prefer an economic boom, even though profits rise much faster than wages.
People want more income, not better Gini coefficients. They are concerned with inequality only when they see some powerful people gaining at their expense. They don't grudge Sachin Tendulkar or Shah Rukh Khan their riches. Both these gentlemen are from families of modest means, and have become billionaires through talent. That makes them role models, not hate objects. They are examples of what ordinary Indians seek - a chance to become rich and famous themselves They do not want a slice of Mao's China, they want a slice of Deng's China. They want the opportunity to rise.
The ADB review is dead right in its key conclusion: governments in Asia must do much more to improve equality of opportunity. In India, it is shocking that after six decades of independence and the spending of millions of crores, literacy is barely 65%, and most people who complete school cannot read simple paragraphs or do simple maths sums.
It is outrageous that every village does not have a functioning school and health clinic; does not have electricity, telecom and a pukkaroad ; does not have access to effective rule of law or judicial redress.
This is the inequality that I keep complaining about. Instead of doing something about it, socialists point fingers at the rising wealth of Ambanis and Tatas, as though that is responsible for the sad plight of our villages. It would be as ridiculous to blame Tendulkar and Shah Rukh Khan.
The shocking denial of access to basic facilities at the village level institutionalises inequality of opportunity, and prevents the poor from rising. Urban facilities provide some social mobility. But rural facilities are typically so pathetic as to become poverty traps.
For this, our netas and babus are fairly and squarely to blame. These heroes of the Left are the zeros that have ensured continuing inequality of opportunity, poverty and powerlessness. Their solution is to compete in offering castebased reservations, not in providing the equality of opportunity that might make caste irrelevant.
I too am outraged that 300 million Indians remain poor. I am outraged not that a few Indians have become billionaires but that thousands more have not, for want of equality of opportunity. I look forward to an India with thousands of billionaires and millions of millionaires. I do not wish to give the poor a few doles, keeping them as objects of pity. I want to them to be given equal opportunity so that they too can be independent and aspire to provide to their progeny what they did not have but always wanted.( convert them to millionaires, to objects of envy).
TRAI initiative on DTH
(Telecom Regulatory Authority Initiative of India initiative on Direct Transmission to Home)
It is important to understand that at the core of the initiatives of the TRAI(Telecom Regulatory Authority of India) should lie the consumers interest and the investor's healthiness so that the consumer gets to access to latest technology at competitive costs over time.
It is therefore obvious that convergence of technologies need to be encouraged and starting from brand related barriers to technology related barriers need to be broken down. Today the business models of the telecoms have to be dynamic to capture the fast changing impact that technology advancements are bringing. While continuity in policy and guidelines to nurture an enterprise is essential, TRAI must be complemented in addressing the consumers interests simultaneously.
DTV is one such convergent technology tool which will have to be exploited to the larger consumers' benefit. Individual players who have outbid others to corner bandwidth(be it satellite or Air Spectrum) should not be encouraged to drive away consumers by imposing artificial restrictions which are purely based on short term revenues considerations.
(My letter to the Editor of Economic Times)
It is important to understand that at the core of the initiatives of the TRAI(Telecom Regulatory Authority of India) should lie the consumers interest and the investor's healthiness so that the consumer gets to access to latest technology at competitive costs over time.
It is therefore obvious that convergence of technologies need to be encouraged and starting from brand related barriers to technology related barriers need to be broken down. Today the business models of the telecoms have to be dynamic to capture the fast changing impact that technology advancements are bringing. While continuity in policy and guidelines to nurture an enterprise is essential, TRAI must be complemented in addressing the consumers interests simultaneously.
DTV is one such convergent technology tool which will have to be exploited to the larger consumers' benefit. Individual players who have outbid others to corner bandwidth(be it satellite or Air Spectrum) should not be encouraged to drive away consumers by imposing artificial restrictions which are purely based on short term revenues considerations.
(My letter to the Editor of Economic Times)
Going over the Hill
I know that at some age one is supposed to feel old and that it is not fixed that one should feel old say at fifty. It varies from person to person.
But when you do feel it, it is shocking.
It is shocking because suddenly you are aware of things which are common knowledge to you but are historical facts for many!
It is shocking because, even though you want to do something, your body does not respond as it has been for decades and you know that you have to slow down.
It is shocking because, you eat less and you do not crave for food.
It is shocking because you have joined the walking group till recently you used to avoid because they were slow
It is shocking because that you know that you have limited (but still lots and lots) time to complete the things you set of to do.
One of the person whom I respect used to say that when you cross fifty you realise that the world can do with out you and when you cross Seventy the world is better off with out you. Now that I have crossed fifty, I do not have that feeling. I am relaising that the infinite energy and time which I had always assumed to be my birth right is no longer true. They are limited and I have used up quite a lot.
I need to commit myself to the job at hand more diligently and complete what I had been made for and that too as early as possible
But when you do feel it, it is shocking.
It is shocking because suddenly you are aware of things which are common knowledge to you but are historical facts for many!
It is shocking because, even though you want to do something, your body does not respond as it has been for decades and you know that you have to slow down.
It is shocking because, you eat less and you do not crave for food.
It is shocking because you have joined the walking group till recently you used to avoid because they were slow
It is shocking because that you know that you have limited (but still lots and lots) time to complete the things you set of to do.
One of the person whom I respect used to say that when you cross fifty you realise that the world can do with out you and when you cross Seventy the world is better off with out you. Now that I have crossed fifty, I do not have that feeling. I am relaising that the infinite energy and time which I had always assumed to be my birth right is no longer true. They are limited and I have used up quite a lot.
I need to commit myself to the job at hand more diligently and complete what I had been made for and that too as early as possible
OPGW - A communication solution for Power Utilities
Any Power utility has to set up dedicated communication links connecting all its operating centers spread through out its geographical area. This network primarily conveys voice signals (conventional telephone conversations), data regarding the operating parameters of the system and electrical protection of transmission line. As on date this is achieved through Power Line Carrier Communication (PLCC) and Microwave. Microwave is weather Dependant and does see rare interruptions, but is expensive as the utility has to pay annual license fees. PLCC has a limitation as it can carry only narrow band signals.
The alternative is Fiber Optic based communication, which has phenomenal band width. For this purpose one has to lay the optic fiber physically connecting the end points. Since the electricity board has dedicated transmission lines Cris crossing the entire state, a scheme was thought of to exploit this "Right of Way" which is other wise lying idle.
In this scheme the earth wire ( a galvanized steel wire which is run on the peak of transmission lines) is replaced with a OPGW (Composite Optical Power Ground Wire) which serves the purpose of acting as earth wire and has an embedded stainless steel tube which carry a bunch of fibers.The transmission line terminates at Receiving stations or generating stations and at these locations the OPGW is terminated and the fiber carried to special equipments called Optical Line Terminal Equipments(OLTE). These OLTE are similar to the ones currently used by the major telecom companies and carry signals in the SDH format. ( An international telecom standard accepted across globe).
The signals of the utility which may start from their telephone exchanges or computer network such as Ethernet or their Data Commendation equipments called RTU(remote terminal unit) or connected to the SDH gateway through specialised equipment called Primary multiplexer at the sending end. At the receiving end these are again "dropped" out of SDH gateway through another set of similar equipment and connected to the exchange or ethernet.
Some of the major advantages of this system over existing comparable communication links of Electricity utilities are the phenomenal increase in band width at a low investment. With increased automation being taken by TNEB in terms of computerisation of billing and collection, accessing their main load center points and generating stations on Real time basis, this network will go a long way in providing fail safe & effective communication link.
Last but not the least - the replacement of existing earth wire typically should call for shutting down the concerned power lines. In this case M/s BGR Energy System, the agency executing this project on a turnkey basis are adopting a system called "live Line working" where they will replace the existing earth wire with optic fiber embedded Ground wire(OPGW) under live conditions, minimising inconvenience to consumers.
Once the Optic fiber is laid and commissioned, TNEB has in its asset a dedicated link which can be used by other state departments. TNEB can also lease out to outsiders after complying with the necessary regulatory compliance's.
NOVARTIS Patents Case Madras High Court Judgement
To Choose not to Choose is one of the most difficult choice any informed person can take on any given circumstances, leave alone under this extremely hyper sensitive NOVARTIS case. To exercise a choice becomes easier when the possible outcomes due to your choice are clear, especially if it were worked out on mathematical models or based on historical data. Not only the outcome in this case is unpredictable, the grounds which has forced one to make a choice is in itself challengable.
History will remember the Madras High Court Judgment on the NOVARTIS case as one of the steps which went on to undo the many damages which TRIPS, WTO has inflicted up on the developing economy in the name of globalisation.The case as widely covered in your paper, has two main elements - EFFICACY & INNOVATION.
The interpretation of EFFICACY and the way it is used to manipulate the protection granted to patents is being well documented. In the near future one can not be surprised even genuine discoveries get branded as manipulation due to this rampant trend of securing patents with tweaking of a few molecules, which is more of a streamlining of process rather than original discoveries.
History will remember the Madras High Court Judgment on the NOVARTIS case as one of the steps which went on to undo the many damages which TRIPS, WTO has inflicted up on the developing economy in the name of globalisation.The case as widely covered in your paper, has two main elements - EFFICACY & INNOVATION.
The interpretation of EFFICACY and the way it is used to manipulate the protection granted to patents is being well documented. In the near future one can not be surprised even genuine discoveries get branded as manipulation due to this rampant trend of securing patents with tweaking of a few molecules, which is more of a streamlining of process rather than original discoveries.
INNOVATION as a tool has also been exploited by the developed world through a much more grandiose design. When the representatives of developing countries negotiated TRIPS and WTO with the rich countries to get additional foothold to the protected markets, they were not equipped and knowledgeable enough to appreciate the long term adverse impact on their health care system due to the agreements on Patents.For starters many of the countries did not have a government funded health care system and may be that is one of the reason why the impact was not properly assessed. For many in the poor countries it was the relatively well off who could afford many treatment and a little bit more additional cost on such select few, was not something they were willing to make noise about. The issue had not raised enough debate to become politically relevant.
The rich countries though, were fully prepared and argued their case and won the case for their multinational corporations. The result is working out to the disadvantage of many in the developing country and the pain & hurt is beginning to be felt. A wrong committed by ignorant few cannot be allowed to decide the innocent lives of many and that too public at large.
Another important aspect is the one related to the near absence of encouragement for INNOVATION in this country or for that matter in any developing country. Innovation, is achieved through incubation of ideas nurtured under experienced hands in carefully guided steps. It needs a steady supply of streams of young talented exploring minds well educated and trained. Their efforts are to be supported through adequately funded labs either by the government or private sector. Entrepreneurship backed by venture funds also make Innovation possible by fresh minds. All these efforts means, access to the best of infrastructure to continue their pursuits and earn enough to continue to be at it.
The rich countries though, were fully prepared and argued their case and won the case for their multinational corporations. The result is working out to the disadvantage of many in the developing country and the pain & hurt is beginning to be felt. A wrong committed by ignorant few cannot be allowed to decide the innocent lives of many and that too public at large.
Another important aspect is the one related to the near absence of encouragement for INNOVATION in this country or for that matter in any developing country. Innovation, is achieved through incubation of ideas nurtured under experienced hands in carefully guided steps. It needs a steady supply of streams of young talented exploring minds well educated and trained. Their efforts are to be supported through adequately funded labs either by the government or private sector. Entrepreneurship backed by venture funds also make Innovation possible by fresh minds. All these efforts means, access to the best of infrastructure to continue their pursuits and earn enough to continue to be at it.
The near absence of such support therefore prevents an opportunity to have a level playing field across countries where due to globalisation one has to abide by the rules of Patents from a given cutoff date. Since the rules are framed by some one outside, centuries old home grown cures such SIDDA medicine, UNANI Medicine and AYUERVEDA are left outside the realm of Patents citing sub clauses of the patent act.
Such is the force of market economy, which allows well intended provisions for market making, capital formation and encouraging of competition, to lend itself to abuses by a few for creating monopoly and indulge in over exploitation.
Starting from Open source software to Scientific leaders engaged in Bio Technology research and Stem Cell Research are increasingly sharing their discoveries and making it available in public domain to benefit and add value. This sort of openness, they are realising, is bringing in substantial benefits to themselves, by cutting down on drug discovery time.
All this is leading to the question of GOOD and BAD capitalism , which is agitating the minds of policy makers world over. Under these circumstances, by deciding not to choose the learned Judge have acknowledged the inherent weakness of the law and its larger implications on the sovereign & constitutional rights of the public. Kudos to my home land Judiciary MADRAS High Court.
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