Indian Elections 2024 - A Personal Note

Girish Menon

As the incumbent Prime Minister Modi heads off to Kanyakumari for some much-needed R&R (or maybe just to escape the election madness), I thought I'd share my two rupees on the 2024 Indian election extravaganza. But before you get too excited, let me warn you – these observations are based on the ramblings of biased commentators who probably couldn't tell the truth from a hole in the ground. So, take it all with a pinch of salt (or maybe a whole shaker).

The Election Commission's Impartiality? What's That?

The Election Commission of India (ECI) was supposed to be the impartial referee in this political boxing match, ensuring a fair fight. But let's be real, when has any referee ever been truly impartial? It's like expecting the umpire at an India-Pakistan cricket match to be completely unbiased. The ruling party was pulling all sorts of shenanigans, and the ECI just turned a blind eye. At least in the IPL, every team gets an equal chance to buy the best players in a glitzy auction. But in this election, it felt like one team was playing with a committed umpire.

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The Olympic Games of Democracy? 

Elections in India are touted as the "Olympic games of democracy," a grand 44 day spectacle where all parties compete on an even playing field, much like the athletes gathering for Paris '24. However, the reality is far from this idealized notion. It's more akin to a rigged game where the ruling party shows up with a souped-up, nitro-boosted sports car, while the opposition parties are stuck with rusty old clunkers, and the track is greased with ill-gotten gains, making it nearly impossible for them to gain traction. The opposition faces disadvantages similar to a woman athlete from Afghanistan competing against a well-trained, well-funded athlete from a developed nation. As Donald Trump aptly put it, the entire exercise is a "rigged game," where the dice were loaded long before the race even began, and I haven't even mentioned the EVMs (Electronic Voting Machines) and the conspiracy theories surrounding it. If the opposition wins then it will be nothing short of an Act of God.

The Mandate Debate: A Never-Ending Soap Opera

Ah, the age-old "mandate" debate. It's like a never-ending soap opera, with the winning party claiming they have a mandate to do whatever they want, and the opposition crying foul. It's a classic case of "he said, she said," and in the end, the only ones benefiting are the lawyers raking in the big bucks.

Expert Predictions: A Game of Darts in the Dark

Then we have the "expert" predictions. Sanjay Dikshit, Prashant Kishore, Yogendra Yadav, and Parakala Prabhakar have thrown out numbers ranging from 180 to 400 seats for the BJP in the 542-member Lok Sabha. That's a wider range than my waistline after a weekend of binge-drinking and snacking. Are these experts consulting some mystical crystal ball, or are they just playing a game of darts in the dark, hoping to hit the bullseye by sheer luck? Who knows, maybe they're just trying to keep their political overlords happy by telling them what they want to hear.

My Two Rupees? The BJP as the Loyal Opposition

Personally, I'd love to see the BJP end up as the single largest party with around 200-210 seats, taking on the role of the loyal opposition. They actually represent only a minority of the Indian population (38% in 2019). They've proven themselves to be quite the watchdogs in the past, barking at every perceived injustice (whether real or imagined). But at the same time, I can't help but worry about the plight of the common folk who've had to bear the brunt of their policies implemented over the last decade.  So there you have it, folks – my completely unbiased (wink, wink) take on the 2024 Indian election circus. Just remember, when it comes to politics, it's always better to laugh than to cry (or maybe do both, just to be safe).

Is it possible to have Freedom and Equality?

 

Bagga or Mevani, an unlawful arrest is just that. But tell that to Indians picking sides

Yogendra Yadav in The Print


Principles be damned, whose side are you on? This seems to be the ruling philosophy of our public life. We all talk about principles, we invoke norms, we cite rules — but only after choosing whom to support. Rarely do we allow our judgement about who is right or wrong to be touched by the principles, norms or rules we extoll. No wonder, no one takes any proclamation of principles seriously.

As someone who is a stickler for procedures, I have often been at the receiving end of this sorry side of our public life. No one is willing to entertain a suspicion that I might have said something because it is right, correct or fair. It is not just our political life, which is especially charged at this moment. I have faced the same reaction in academia, government institutions as well as social movements. If you object to a proposal by a “friend” just because it is a poor proposal, you are sure to risk your friendship. If you support something right done or said by someone from the other camp, tongues start wagging — zaroor kuchh setting hai! That is what happened when I spoke up against hoisting of religious flag inside the Red Fort on 26 January, or against lynching of a Dalit Sikh man at Singhu border by some Nihangs. My visit to the family of a BJP worker who died at Lakhimpur Kheri is still held up as a proof of lack of loyalty to the cause.

So I was prepared for the usual reactions when I tweeted welcoming the Punjab and Haryana High Court order staying the arrest of BJP member Tajinder Pal Singh Bagga until 6 July. My tweet simply said: “The order should be welcomed, no matter what our opinion about the person. Sending police to arrest someone on a tweet is not done. Be it Jignesh Mevani or Rana couple, Alka Lamba or Disha Ravi, it is unethical and illegal to use police to torment political opponents.” You can check my timeline for the replies I received. The usual trolling was joined by AAP supporters, no less vicious than BJP ones — who assumed that I was taking out khundak (grudge) against Arvind Kejriwal. (As and when I support something the AAP does, it is read as a sign of a wish to come back.)

Looking beyond the personal antics

Many critics made valid points: that what happened to Bagga was nothing compared to what BJP governments have done to their critics, that the courts were far from consistent in protecting other victims in his position. Some of them assumed that I had forgotten Bagga’s past, especially his leading a physical assault on my friend Prashant Bhushan. Some of them insisted that given his low-grade trolling, the Punjab police had good reasons to give him its famous dose.

Without doubt, Tajinder Singh Bagga is what in polite English you’d call a ‘disagreeable’ character. The thesaurus offers you less polite options to choose from: rude, nasty, obnoxious, repugnant, disgusting. Worse, we don’t even know if this public persona is his real self. All we know is his reel self on social media. All we know is that he has made a political career and business out of attacking — physically and verbally — those targeted by the BJP. We just know him as yet another cardboard character — straight from a cartoon strip — that has arrived in our public life to meet the ever-rising demand for hatred, contrived and real.

How do you deal with someone like him? Ideally, he should be ignored. Stop feeding people like him with negative attention and they perish. Or, you could turn him into a meme, as satirist @roflGandhi has done, much to my delight. Or you could refute him — an ineffective and unwise option, to my mind — through fact-checking or counter-trolling. But can you set the police after him? That is the operational question in this instance.

Just consider the facts of the case. In March this year, Bagga wrote a nasty tweet, since deleted, in response to Arvind Kejriwal’s speech in Delhi assembly questioning the BJP’s promotion of the movie The Kashmir Files: “When 10 lakh ***** are born, one Kejriwal takes birth”. Disgustingly provocative the post certainly was. But would you say it is “criminal intimidation” or “promoting enmity between communities”? These are the charges under which the Punjab police, following a complaint from a local AAP functionary, booked Bagga. He dodged police summons to come to Punjab for “questioning”, a euphemism for mental and physical torture. The Punjab police, ever so focused on this one FIR, landed in Delhi to arrest him.

The drama that followed, involving Punjab, Delhi, and Haryana police, can only be called a farce worse than Bagga’s antics. The National Commission on Minorities, conspicuously silent on bulldozing of Muslim-owned houses and shops, was peeved at Bagga not being allowed to tie his turban. When the court opened at midnight for him, India’s criminal justice system looked like a joke. The Punjab and Haryana High Court order was a welcome end to this prolonged and pathetic public spectacle.

Noticing a nation-wide trend

This drama is being played all over the country, in what Shekhar Gupta calls Mutually Assured Detention. While the BJP leads in targeting its critics with the help of agencies, mainstream media and social media, the opposition-led governments have also taken a leaf out of the BJP’s book. They, too, use the standard recipe: file a frivolous complaint, slap draconian charges in the FIR, use the police to go after the target and teach them a lesson. The job is done before the case ever comes up for trial in a court of law.

That is why I cite the case of Jignesh Mevani. Now, it seems ridiculous to compare Mevani’s fight for justice and his courage of conviction with Baggas of the world. My point here is to remind us that the insidious trick used by the BJP in Mevani’s case is not different from that used by the AAP in the case of Bagga. Now that the AAP controls a police force for the first time (Punjab’s), it is happy to misuse it exactly as other governments. They have also targeted Kumar Vishwas and Alka Lamba on similar trumped up charges.

The Maha Vikas Aghadi (MVA) government in Maharashtra is no different, as the recent case of MP Navneet Rana and her MLA-husband Ravi Rana demonstrates. Their proposed gimmick of reading Hanuman Chalisa outside the private residence of the Chief Minister could at the most call for preventive detention. But arrest under charges of sedition and spreading hatred between communities is plainly ridiculous. Such vindictive actions cast a shadow on other cases — the one against TV anchor Aman Chopra, for example — where the charge of spreading enmity between communities appear to be serious and worthy of a criminal trial.

Hence my plea to all those who are concerned about the endangered constitutional fiction called the Rule of Law: can we stick to principles, irrespective of the persons involved? Or am I whistling in the dark?

It's time we South Asians understood that colourism is racism

If you consider kalu to be an affectionate nickname and not a slur, you need to examine your internal prejudices and the systems that support it  writes Sambit Bal in Cricinfo

What should we feel, and I ask my fellow South Asians this, having heard Daren Sammy raise the issue of being called kalu by his IPL team-mates? Horror and shame?

It is easy to imagine the befuddlement among some of his former team-mates. That was racist? Weren't - and aren't - we all buddies? Wasn't someone called a motu and someone else a lambu? What about all the camaraderie, and where was the offence when we were all having a jolly time?

How horrified and ashamed are we, really? Have we not thought, even in passing, that this could be a case of dressing-room banter being conflated with racism? And can we, hand on heart, say that we are completely surprised the things Sammy says happened did happen?

Once we have played all these questions in our minds, only one remains: how do we not know that this is so horribly wrong? It's not about whether Sammy knew the meaning of the word; it's about what his team-mates didn't know.
To address this, we must first widen the scope beyond Sammy and Sunrisers Hyderabad. We are at an extraordinary moment in history where a black man being publicly choked to death by a figure of authority has not only sparked worldwide mass outrage, but has also created a heightened sense of awareness about discrimination on the basis of colour, and led to the re-examination of a wide range of social behaviours.

To find the explanation for how it became okay for a group of international cricketers to address - in terms of endearment, they may add - a black West Indian player as kalu, we must face one of the most insidious practices in South Asian culture: colourism.

The elevation of whiteness is not a subcontinental phenomenon. The idea has been seeded over centuries, through religion, cultural imagery, and most profoundly, language, that "white" connotes everything pristine, pure and fair (consider the word "fair" itself) and that "dark" represents everything sinister. Watch Muhammad Ali take this on with cutting simplicity here.

But to understand how this idea originated and grew in the subcontinent, which suffered over 200 years of colonial subjugation and still suffers caste-based discrimination, one must sift through complex layers of sociocultural conditioning based on the regressive dynamics of class, caste, sect and gender. The hierarchy of skin colour is all pervasive in the region, and it doesn't strike most as odd, much less repugnant, that lightness of complexion should be so deeply linked to ideas of beauty.

This idea has been reinforced over decades through popular culture. You need to look no further than mainstream cinema in India: how many of our successful actors, especially women, are representative of the median South Asian skin tone? In the matrimonial pages, fair skin is peddled as a clinching eligibility factor, and consequently, ads for fairness creams position them as agents of salvation and success. So organically is this drilled into the mass subconscious that the obsession has ceased to be offensive: it is merely aspirational.

Add to this another subcontinental abomination - the practice of addressing people by their physical attributes - and you have a recipe for something utterly toxic. These terms of address are demeaning but normalised by a coating of endearment: jaadya or motu for the heavy-set, chhotu or batka for the short, kana for those who squint, and quite seamlessly, kalu or kaliya for those with skin tones darker than that of the majority.

This would perhaps explain Sarfaraz Ahmed's mild bemusement at the outrage over his "Abey kaale" remark to Andile Phehlukwayo in Durban last year. Ahmed, then Pakistan's captain, was speaking in Urdu, so it was apparent that he didn't expect Phehlukwayo, the South Africa allrounder, to understand the sledge, and that anyone familiar with the culture in Pakistan would have understood that he did not intend it as a racial slur.

But it can't be emphasised more that racist utterances are no longer about intent, because intent is so organically and inextricably loaded into the words themselves that it is no longer acceptable to explain them away with "It was not intended to be racist, or to cause hurt or offence." It's for all of us to internalise, more so for public figures: offence not meant is not equal to offence not given or received. 

The silence of victims mustn't be misread. It does not mean willing acceptance. In most cases, they have no choice. They often find themselves outnumbered in social groups - or in dressing rooms - and choose to belong, rather than to confront. Former India opening batsman Abhinav Mukund brought this to light a few years ago with a poignant post on Twitter about how he had to "toughen up" against "people's constant obsession" with his skin colour. In a dressing-room scenario, where the eagerness to conform is far more acute, and where a culture of bullying isn't alien, the compulsion to grin and bear these "friendly" jibes is even more severe.

It doesn't have to be. It might take years, perhaps generations, to reform societies, but sports can do it much more easily through sensitisation and education. In Ahmed's case, it was staggering that a captain of an international team did not understand the enormity of using those words against a black South African cricketer. Cricket boards and franchises now have elaborate programmes to educate players about match-fixing and drug abuse, and in some cases, media management. Adding cultural sensitisation to the list would be a small task but a big step.

Calling somebody kalu in the subcontinent might not feel racist in the way the world understands it. But even without the scars of slavery and subjugation, colourism carries some of the worst features of racism; it is discriminatory, derogatory and dehumanising.

The right response to Sammy is not to question why he didn't raise the matter at the time. He has already explained that he didn't understand what the word meant. It is not even about establishing guilt and punishment. The whole episode must lead to an enquiry into our own prejudices. Cricketers are not only role models and flag bearers of the spirit of their sport. They are also, more than ever before, global citizens, and ignorance shouldn't count as an excuse or serve as a shield.

The Pakistan election was fair

S Y Quraishi in The Indian Express


The general election in Pakistan is being described as a milestone in the democratic history of the country. This is only the second transition from one full-term civilian government to another, and the first under the new Election Law, 2018. I got a great opportunity to observe the event from a ringside seat as a member of the Commonwealth Election Observers Group. The 15-member group headed by Abdulsalami Abubakar, former head of state of Nigeria, spent 12 days to observe events leading up to the election, the polling and counting day and the declaration of the results over three days.

The group met delegations from the leading political parties, civil society and the media to understand the pre-electoral environment, which was reported to point to a not-too-fair election. We were told of massive pre-poll “rigging”. Mainly, three things were cited: Forcing of certain party leaders to return their tickets, muzzling of the media, and misuse of the army and judiciary in favour of a particular party. It is difficult to understand how the changing loyalties of political leaders can be described as rigging — such political engineering is common in the Subcontinent where turncoats and horse trading are household terms. Some media representatives said that after a lot of subtle and overt intimidation, many have decided on self censorship as a wiser option. The hold of the army on institutions like the judiciary, the National Accountability Bureau, the media, etc was a common refrain. We were told naming the army was taboo, full of risks. Therefore, alternative expressions or euphemisms had been evolved, like “establishment”, “powers that be”, “khalai makhlooq” (people from outer space), “angels” and even “agriculture department”.

People who questioned the impartiality of the military and judiciary cited the timing of court cases against certain political leaders and candidates. Media were allegedly prevented from fully covering certain issues like the rights of the minorities and the role of state institutions. For the poll-day arrangements, questions were focused on the large-scale deployment of the army. Concerns were raised about the order to deploy soldiers inside the polling stations. We, therefore, decided to focus special attention on these concerns.

We observed that candidates from across parties and independents were able to campaign freely and peacefully. Maybe we arrived too late, by which time the games were already played. The overall security situation was tense, especially in Khyber Pakhtunkhwa (KPK) and Balochistan, where terrorist attacks in the preceding weeks claimed more than 170 lives, including of three candidates. However, the parties were able to organise their rallies freely as per Election Rules 2017. A lot of negative and abusive campaigning was initially reported but after the Election Commission of Pakistan’s (ECP) stern action under the model code, most people fell in line.

We found the electoral system quite robust, with a substantially reformed legal framework consisting of the Constitution of Pakistan, the Elections Act, 2017 and Election Rules, 2017, which has led to a greater autonomy of the ECP, including financial autonomy, power to make rules and punish for contempt, and to deregister or delist an existing political party. Officials deputed for election duties have now been brought under the ECP’s disciplinary control.

Some legal reforms for enhancing women voters’ participation are noteworthy. The ECP can declare an election null and void if less than 10 per cent women have voted in a constituency. This had a salutary effect in those frontier regions where women were traditionally not allowed to vote. Each party has to nominate a minimum of 5 per cent women candidates for the general seats in the National Assembly. This is in addition to 70 seats in the National Assembly (272 members) which are filled by nomination by the political parties according to the number of seats won. (Incidentally, 10 seats are reserved for minorities). Special campaigns by the National Database and Registration Authority (NADRA), political parties and civil society helped increase their enrolment as voters. Separate polling stations for women, run entirely by women, also encouraged turnout.

Polling day passed off peacefully much to everyone’s relief. There was a 53 per cent turnout, significantly higher than the 48 per cent in 2013.

Unlike India, the counting in Pakistan is done at the polling station itself immediately after polling closes. There were several questions raised about the counting. Some parties alleged that the polling agents were not allowed to observe the counting from close up. Some complained that their agents were thrown out of the stations. There were allegations that Form 45 (result sheet) was neither given to polling agents nor pasted on the wall of the PS. The ECP denied the first allegation clarifying that only those agents who were in excess of one per party were asked to leave. It, however, admitted to several instances of the second allegation and promised to take action. The ECP also admitted the failure of the Result Transmission System because it had not been pilot tested adequately. The foreign minister, whom we met, attributed this, in a lighter vein, to the failure of the British technology on which the app was based.

The conduct of the proscribed militant-dominated religious organisations was watched with interest, a phenomenon of special concern to India. We noted that the ECP, in accordance with the law, did not allow the registration of such entities and individuals to contest elections. However, its mechanism for filtering candidates linked to such organisations was weak which led to three candidates managing to slip through scrutiny. They were, however, delisted on the eve of the election after a hue and cry of the media and civil society. It is remarkable that religious parties with extremist connections were totally routed both in national and provincial assemblies. Tehreek-e-Labbaik managed to get only two seats in Karachi whereas the Allah-o-Akbar party drew a blank.

The elections were closely observed by a huge force of volunteers of civil society led by the Free and Fair Election Network (FAFEN) and Trust for Democracy Education and Accountability, besides international observers from the EU, Commonwealth and several diplomats. FAFEN deployed 19,683 citizen observers (including 5,846 women) at more than 65,000 polling stations (almost 80 per cent of the total). Most observers were satisfied with arrangements and conduct of elections. The Commonwealth group commended the ECP for a laudable job in the short time it had to implement its mandate for holding transparent elections on schedule. It regarded the General Election 2018 as an important milestone in strengthening democracy in Pakistan.
Quraishi is former chief election commissioner of India

Britain should deal with tax havens the way De Gaulle took on Monaco

Polly Toynbee in The Guardian


The prime minister has opened the floodgates, dragging the chancellor after him. Whatever David Cameron says, his example means all MPs will soon publish their tax returns: how dare any refuse? Feeding frenzies against politicians are not a pretty sight.

It’s a curious phenomenon that democracy is hailed as the highest human endeavour, yet its practitioners are always held in public contempt. “Elites” everywhere are in the pillory, but none more than the “elite” we elect and then despise.

Why single out politicians? The Times quotes a Conservative MP saying this will inevitably extend to “all those in public life” asking, “Where does it stop? BBC journalists, councillors, judges?” Indeed, there is no clear line between public and private people. Donors to political parties, journalists certainly, anyone in public office or with a public contract – and their partners too. There is no stopping these dominoes. Cameron in the Commons said he was against public officials having to publish tax returns, but he has broken the secrecy spell, and transparency always leads to demands for more.

Money is not a private matter. It may be almost as exciting as sex but exposing private wealth is not like publishing rude photos from private bedrooms. Who has what and from where is public because everyone must pay tax on it, even if a depleted HMRC can scrutinise very little. On death, light shines in as wills are published, but real transparency would make everyone’s tax return a public document.

The social shock would be seismic. At first people would feel as naked as if their clothes were stripped off in front of neighbours and work colleagues. Why else was Cameron so shy about revealing the scale of his wealth? He had done nothing unusual for families of his kind: it was the graphic exposure of his hundreds of thousands that made him blush. Why? Because people with inherited money know it’s not fair, they didn’t earn it and they are just lucky winners in life’s lottery.

The Daily Mail delivered a mighty full-page blast of anger against any questioning of Osborne’s £1m inheritance tax gift, which will cost the exchequer £5.8bn. Misleading as ever, they write of “most people”, and Downing Street talks of “millions of ordinary people” doing “proper tax planning” for inheritance. Yet as it is, only the super-rich pay inheritance tax, just one in 20 estates. Forget the seven-year rule, abolish this tax and instead tax recipients for all gifts they receive above a threshold over their lifetime.

The Mail warns that all this embarrassing exposure means “people with private means will no longer wish to go into public life, putting their advantages at the service of the less fortunate”. But that’s just it, these leaders with private means have harried the “less fortunate” mercilessly. They inflict billions of cuts on the poorest – in bedroom tax, benefit cap, child benefit freeze, two-child limit, and ruthless disability fit-for-work tests – while sanctions drive many into food bank destitution. The “less fortunate” may not be grateful to those with private means who rule over them. No wonder Cameron blanches at revealing his all.

Sheltering wealth, the right calls any protest against inequality “the politics of envy”. Most families still haven’t regained their pre-financial crash incomes, yet anyone with high-value property watches their assets inflate into the stratosphere. When unearned income such as Cameron’s soars but wages lag behind, anger at untaxed riches is inevitable.

Polls show people make a sharp distinction between genuine “wealth creators”, such as self-made entrepreneurs or superstars, and the trustafarians and rent-seekers who are enriched for no discernible merit. Resentment is often channelled into cynicism and sour trolling, not into political action. Will this start to change?

In Scandinavian countries, total tax transparency has helped create societies far more equal than ours. At the click of a mouse in Norway, people can find out what others own and earn, and everyone knows where they stand. Transparency stops women being paid less than men. Transparency makes employers more likely to pay themselves and their staff fairly. The culture of openness breathes an implicit belief in social justice.

But here, research from the London School of Economics’ professor John Hills shows how clueless most people are about the earnings of others, wildly underestimating British inequality. Both rich and poor delude themselves that they are far nearer the middle than they are. They know people who are better off and worse off, wrongly concluding themselves to be middling.

In my book Hard Work, I ran focus groups of the super-rich who refused to believe how much richer they were than the rest. Those with yachts envy those with a yacht and a crew, so they never feel truly rich. With the decline of unions, pay secrecy allows employers to divide and rule in the dark.

The disinfectant of sunlight makes shifty dealings and criminality much less likely, so it’s time for us to turn Norwegian. Don’t let’s strip public figures naked one by one, but let’s open the window and have every citizen’s tax return exposed. Tax works when everyone knows everyone else pays it too: I-will-if-you-will transparency is the same, all jumping in with one big splash, everyone’s income and wealth revealed together.

But don’t let gossipy obsession with personal wealth and inheritance distract from the main issue revealed in the Panama Papers. The prime task is to sweep away secrecy that allows our flotilla of tax havens to hide the world’s wealth from taxmen.

Cameron announces new rules obliging havens to answer HMRC requests for information on the beneficial owner of a company within an hour. But that’s bogus transparency, depending on occasional official requests. Tax experts say all beneficial ownership must be published openly so any investigator can check who owns what any time.

In the same way, all dealings between HMRC and companies must be published, so we can see how Google, Amazon, Facebook and myriad others escape paying what they owe. After deep cuts, HMRC needs assistance from the prying eyes of journalists, the public, company competitors and anyone who might investigate mega-avoiders.

Today Cameron’s promise fell far short of that genuine transparency. He needs to get tough with the treasure islands and follow Charles de Gaulle’s example. When Monaco refused a tax measure he requested, he forced them to surrender by surrounding the kingdom with soldiers and turning off their water supply.

What is a fair start

Michael Sandel - Harvard University -

PART ONE: WHATS A FAIR START?
Is it just to tax the rich to help the poor? John Rawls says we should answer this question by asking what principles you would choose to govern the distribution of income and wealth if you did not know who you were, whether you grew up in privilege or in poverty. Wouldnt you want an equal distribution of wealth, or one that maximally benefits whomever happens to be the least advantaged? After all, that might be you. Rawls argues that even meritocracy—a distributive system that rewards effort—doesnt go far enough in leveling the playing field because those who are naturally gifted will always get ahead. Furthermore, says Rawls, the naturally gifted cant claim much credit because their success often depends on factors as arbitrary as birth order. Sandel makes Rawlss point when he asks the students who were first born in their family to raise their hands.

PART TWO: WHAT DO WE DESERVE?

Professor Sandel recaps how income, wealth, and opportunities in life should be distributed, according to the three different theories raised so far in class. He summarizes libertarianism, the meritocratic system, and John Rawlss egalitarian theory. Sandel then launches a discussion of the fairness of pay differentials in modern society. He compares the salary of former Supreme Court Justice Sandra Day OConnor ($200,000) with the salary of televisions Judge Judy ($25 million). Sandel asks, is this fair? According to John Rawls, it is not. Rawls argues that an individuals personal success is often a function of morally arbitrary facts—luck, genes, and family circumstances—for which he or she can claim no credit. Those at the bottom are no less worthy simply because they werent born with the talents a particular society rewards, Rawls argues, and the only just way to deal with societys inequalities is for the naturally advantaged to share their wealth with those less fortunate.

We need a fair system for restructuring sovereign debt

If the debt vultures have their way, there will never be a fresh start for indebted countries - and no one will agree to restructuring

• 
• • Joseph Stiglitz
  • theguardian.com, Wednesday 4 September 2013 17.48 BST

If the debt vultures have their way, there will never be a fresh start for indebted countries - and no one will agree to restructuring. Photograph: Joe Petersburger/Getty Images/National Geographic Creative

A recent decision by a United States appeals court threatens to upend global sovereign debt markets. It may even lead to the US no longer being viewed as a good place to issue sovereign debt. At the very least, it renders non-viable all debt restructurings under the standard debt contracts. In the process, a basic principle of modern capitalism – that when debtors cannot pay back creditors, a fresh start is needed – has been overturned.

The trouble began a dozen years ago, when Argentina had no choice but to devalue its currency and default on its debt. Under the existing regime, the country had been on a rapid downward spiral of the kind that has now become familiar in Greece and elsewhere in Europe. Unemployment was soaring, and austerity, rather than restoring fiscal balance, simply exacerbated the economic downturn.

Devaluation and debt restructuring worked. In subsequent years, until the global financial crisis erupted in 2008, Argentina's annual GDP growth was 8% or higher, one of the fastest rates in the world.

Even former creditors benefited from this rebound. In a highly innovative move, Argentina exchanged old debt for new debt – at about 30 cents on the dollar or a little more – plus a GDP-indexed bond. The more Argentina grew, the more it paid to its former creditors.

Argentina's interests and those of its creditors were thus aligned: both wanted growth. It was the equivalent of a "Chapter 11" restructuring of American corporate debt, in which debt is swapped for equity, with bondholders becoming new shareholders.

Debt restructurings often entail conflicts among different claimants. That is why, for domestic debt disputes, countries have bankruptcy laws and courts. But there is no such mechanism to adjudicate international debt disputes.

Once upon a time, such contracts were enforced by armed intervention, as Mexico, Venezuela, Egypt, and a host of other countries learned at great cost in the nineteenth and early twentieth centuries. After the Argentine crisis, President George W. Bush's administration vetoed proposals to create a mechanism for sovereign-debt restructuring. As a result, there is not even the pretence of attempting fair and efficient restructurings.

Poor countries are typically at a huge disadvantage in bargaining with big multinational lenders, which are usually backed by powerful home-country governments. Often, debtor countries are squeezed so hard for payment that they are bankrupt again after a few years.

Economists applauded Argentina's attempt to avoid this outcome through a deep restructuring accompanied by the GDP-linked bonds. But a few "vulture" funds – most notoriously the hedge fund Elliott Management, headed by the billionaire Paul E. Singer – saw Argentina's travails as an opportunity to make huge profits at the expense of the Argentine people. They bought the old bonds at a fraction of their face value, and then used litigation to try to force Argentina to pay 100 cents on the dollar.

Americans have seen how financial firms put their own interests ahead of those of the country – and the world. The vulture funds have raised greed to a new level.

Their litigation strategy took advantage of a standard contractual clause (called pari passu) intended to ensure that all claimants are treated equally. Incredibly, the US Court of Appeals for the Second Circuit in New York decided that this meant that if Argentina paid in full what it owed those who had accepted debt restructuring, it had to pay in full what it owed to the vultures.

If this principle prevails, no one would ever accept debt restructuring. There would never be a fresh start – with all of the unpleasant consequences that this implies.

In debt crises, blame tends to fall on the debtors. They borrowed too much. But the creditors are equally to blame – they lent too much and imprudently. Indeed, lenders are supposed to be experts on risk management and assessment, and in that sense, the onus should be on them. The risk of default or debt restructuring induces creditors to be more careful in their lending decisions.

The repercussions of this miscarriage of justice may be felt for a long time. After all, what developing country with its citizens' long-term interests in mind will be prepared to issue bonds through the US financial system, when America's courts – as so many other parts of its political system – seem to allow financial interests to trump the public interest?

Countries would be well advised not to include pari passu clauses in future debt contracts, at least without specifying more fully what is intended. Such contracts should also include collective-action clauses, which make it impossible for vulture funds to hold up debt restructuring. When a sufficient proportion of creditors agree to a restructuring plan (in the case of Argentina, the holders of more than 90% of the country's debt did), the others can be forced to go along.

The fact that the International Monetary Fund, the US Department of Justice, and anti-poverty NGOs all joined in opposing the vulture funds is revealing. But so, too, is the court's decision, which evidently assigned little weight to their arguments.

For those in developing and emerging-market countries who harbor grievances against the advanced countries, there is now one more reason for discontent with a brand of globalization that has been managed to serve rich countries' interests (especially their financial sectors' interests).

In the aftermath of the global financial crisis, the United Nations Commission of Experts on Reforms of the International Monetary and Financial System urged that we design an efficient and fair system for the restructuring of sovereign debt. The US court's tendentious, economically dangerous ruling shows why we need such a system now.

Google's tax avoidance is called 'Capitalism'

 Google chairman Eric Schmidt has insisted that he is "very proud" of the company's tax structure, and said that measures to lower its payments were just "capitalism". 

 

Also read Britain could end these tax scams by hitting the big four accountancy firms

 

Mr Schmidt's comments risk inflaming the row over the amount of tax multinationals pay, after it emerged that Google funnelled $9.8bn of revenues from international subsidiaries into Bermuda last year in order to halve its tax bill. Photo: Bloomberg News

 

By Telegraph Staff

6:50PM GMT 12 Dec 2012

 

Mr Schmidt's comments risk inflaming the row over the amount of tax multinationals pay, after it emerged that Google funnelled $9.8bn (£6.07bn) of revenues from international subsidiaries into Bermuda last year in order to halve its tax bill.

However, Mr Schmidt defended the company's legitimate tax arrangements. “We pay lots of taxes; we pay them in the legally prescribed ways,” he told Bloomberg. “I am very proud of the structure that we set up. We did it based on the incentives that the governments offered us to operate.”

“It’s called capitalism,” he said. “We are proudly capitalistic. I’m not confused about this.”

In Britain Vince Cable was unimpressed by Mr Schmidt’s views. The Business Secretary told The Daily Telegraph: “It may well be [capitalism] but it’s certainly not the job of governments to accommodate it.”

A Californian pressure group called Consumer Watchdog wrote to the Senate’s Finance Committee demanding a hearing on Google’s “global tax avoidance strategies”.

Consumer Watchdog’s director John Simpson called for the Committee to schedule a time for Mr Schmidt and Google’s chief executive could “testify under oath and explain their company’s apparent abuse of the tax code to the detriment of all who play fairly.”

Mr Simpson urged the Senate to work with “other countries’ tax authorities” to “put an end to egregious loopholes that allow cynical exploitation by this generation’s Robber Barons.”

“Governments in Europe, many of which have been targets of Google’s morally bankrupt tax policies, are actively seeking redress,” he wrote. “But this is not a problem that only impacts other countries’ revenues. Google’s tactics strike at the US Treasury as well, forcing the rest of us to make up for the Internet giant’s unwillingness to pay its fair share.”

He added: “What makes Google’s activities so reprehensible is its hypocritical assertion of its corporate motto, 'Don’t Be Evil'.”

Documents filed last month in the Netherlands show that Britain is Google’s second biggest market generating 11pc of its sales, or $4.1bn last year.

But the company paid just £6m in corporation tax. Overall, Google paid a rate of 3.2pc on its overseas earnings, despite generating most of its revenues in high-tax jurdisdictions in Europe.
The company reportedly uses complex tax schemes called the Double Irish and Dutch Sandwich, which take large royalty payments from international subsidiaries and pay tax in low rate regimes.
By channelling its revenues through Bermuda, Google avoided $2bn of global income levies last year.

The tax arrangements add fuel to accusations made by British MPs that Google and other firms including Starbucks and Amazon, have been “immorally” minimising its tax bills.
 
Matt Brittin, Google’s UK boss, said MPs were blaming companies for a system that they had designed. “Google plays by the rules set by politicians,” he said. “The only people who really have choices are politicians who set the tax rates.”

Last week, Starbucks caved into public pressure and promised to pay £20m to the Treasury over the next two years. However the trigger more criticism of “optional” tax payments.

The vultures are circling after Hurricane Sandy!

Hurricane Sandy: Beware of America's disaster capitalists

The aftermath of the storm offers a chance to rebuild a fairer society. How can we seize it?

• 
• • Naomi Klein
  • The Guardian, Tuesday 6 November 2012 18.22 GMT

Destruction caused by Hurricane Sandy in Breezy Point, New York. Photograph: Julie Hau/Demotix/Corbis

Less than three days after Sandy made landfall on the east coast of the United States, Iain Murray of the Competitive Enterprise Institute blamed New Yorkers' resistance to Big Box stores for the misery they were about to endure. Writing on Forbes.com, he explained that the city's refusal to embrace Walmart will likely make the recovery much harder: "Mom-and-pop stores simply can't do what big stores can in these circumstances," he wrote. He also warned that if the pace of reconstruction turned out to be sluggish (as it so often is) then "pro-union rules such as the Davis-Bacon Act" would be to blame, a reference to the statute that requires workers on public works projects to be paid not the minimum wage, but the prevailing wage in the region.

The same day, Frank Rapoport, a lawyer representing several billion-dollar construction and real estate contractors, jumped in to suggest that many of those public works projects shouldn't be public at all. Instead, cash-strapped governments should turn to public private partnerships, known as "P3s" in the US. That means roads, bridges and tunnels being rebuilt by private companies, which, for instance, could install tolls and keep the profits. These deals aren't legal in New York or New Jersey, but Rapoport believes that can change. "There were some bridges that were washed out in New Jersey that need structural replacement, and it's going to be very expensive," he told the Nation. "And so the government may well not have the money to build it the right way. And that's when you turn to a P3."

The prize for shameless disaster capitalism, however, surely goes to rightwing economist Russell S Sobel, writing in a New York Times online forum. Sobel suggested that, in hard-hit areas, Federal Emergency Management Agency (Fema) should create "free-trade zones – in which all normal regulations, licensing and taxes [are] suspended". This corporate free-for-all would, apparently, "better provide the goods and services victims need".

Yes, that's right: this catastrophe, very likely created by climate change – a crisis born of the colossal regulatory failure to prevent corporations from treating the atmosphere as their open sewer – is just one more opportunity for further deregulation. And the fact that this storm has demonstrated that poor and working-class people are far more vulnerable to the climate crisis shows that this is clearly the right moment to strip those people of what few labour protections they have left, as well as to privatise the meagre public services available to them. Most of all, when faced with an extraordinarily costly crisis born of corporate greed, hand out tax holidays to corporations.

The flurry of attempts to use Sandy's destructive power as a cash grab is just the latest chapter in the very long story I have called the The Shock Doctrine. And it is but the tiniest glimpse into the ways large corporations are seeking to reap enormous profits from climate chaos.

One example: between 2008 and 2010, at least 261 patents were filed or issued relating to "climate-ready" crops – seeds supposedly able to withstand extreme conditions such as droughts and floods; of these patents close to 80% were controlled by just six agribusiness giants, including Monsanto and Syngenta. With history as our teacher, we know that small farmers will go into debt trying to buy these new miracle seeds, and that many will lose their land.

In November 2010, the Economist ran a climate change cover story that provides a useful (if harrowing) blueprint for how climate change could serve as the pretext for the last great land grab, a final colonial clearing of the forests, farms and coastlines by a handful of multinationals. The editors explain that droughts and heat stress are such a threat to farmers that only big players can survive the turmoil, and that "abandoning the farm may be the way many farmers choose to adapt". They had the same message for fisherfolk occupying valuable ocean-front lands: wouldn't it be so much safer, given rising seas and all, if they joined their fellow farmers in the urban slums? "Protecting a single port city from floods is easier than protecting a similar population spread out along a coastline of fishing villages."

But, you might wonder, isn't there a joblessness problem in most of these cities? Nothing a little "reform of labour markets" and free trade can't fix. Besides, cities, they explain, have "social strategies, formal or informal". I'm pretty sure that means people whose "social strategies" used to involve growing and catching their own food can now cling to life by selling broken pens at intersections, or perhaps by dealing drugs. What the informal social strategy should be when superstorm winds howl through those precarious slums remains unspoken.

For a long time, climate change was treated by environmentalists as a great equaliser, the one issue that affected everyone, rich or poor. They failed to account for the myriad ways by which the super rich would protect themselves from the less savory effects of the economic model that made them so wealthy. In the past six years, we have seen in the US the emergence of private fire fighters, hired by insurance companies to offer a "concierge" service to their wealthier clients, as well as the short-lived "HelpJet" – a charter airline in Florida that offered five-star evacuation services from hurricane zones. Now, post-Sandy, upmarket real estate agents are predicting that back-up power generators will be the new status symbol with the penthouse and mansion set.

For some, it seems, climate change is imagined less as a clear and present danger than as a kind of spa vacation; nothing that the right combination of bespoke services and well-curated accessories can't overcome. That, at least, was the impression left by the Barneys New York's pre-Sandy sale – which offered deals on sencha green tea, backgammon sets and $500 throw blankets so its high-end customers could "settle in with style". 

So we know how the shock doctors are readying to exploit the climate crisis, and we know from the past how that story ends. But here is the real question: could this crisis present a different kind of opportunity, one that disperses power into the hands of the many rather than consolidating it the hands of the few; one that radically expands the commons, rather than auctions it off in pieces? In short, could Sandy be the beginning of A People's Shock?

I think it can. As I outlined last year, there are changes we can make that actually have a chance of getting our emissions down to the level science demands. These include re-localising our economies (so we are going to need those farmers where they are); vastly expanding and reimagining the public sphere to not just hold back the next storm but to prevent even worse disruptions in the future; regulating the hell out of corporations and reducing their poisonous political power; and reinventing economics so it no longer defines success as the endless expansion of consumption.  

Just as the Great Depression and the second world war launched movements that claimed as their proud legacies social safety nets across the industrialised world, so climate change can be a historic occasion to usher in the next great wave of progressive change. Moreover, none of the anti-democratic trickery I described in The Shock Doctrine is necessary to advance this agenda. Far from seizing on the climate crisis to push through unpopular policies, our task is to seize upon it to demand a truly populist agenda.

The reconstruction from Sandy is a great place to start road testing these ideas. Unlike the disaster capitalists who use crisis to end-run democracy, a People's Recovery (as many from the Occupy movement are already demanding) would call for new democratic processes, including neighbourhood assemblies, to decide how hard-hit communities should be rebuilt. The overriding principle must be addressing the twin crises of inequality and climate change at the same time. For starters, that means reconstruction that doesn't just create jobs but jobs that pay a living wage. It means not just more public transit, but energy-efficient, affordable housing along those transit lines. It also means not just more renewable power, but democratic community control over those projects.

But at the same time as we ramp up alternatives, we need to step up the fight against the forces actively making the climate crisis worse. That means standing firm against the continued expansion of the fossil fuel sector into new and high-risk territories, whether through tar sands, fracking, coal exports to China or Arctic drilling. It also means recognising the limits of political pressure and going after the fossil fuel companies directly, as we are doing at 350.org with our "Do The Math" tour. These companies have shown that they are willing to burn five times as much carbon as the most conservative estimates say is compatible with a liveable planet. We've done the maths, and we simply can't let them.

Either this crisis will become an opportunity for an evolutionary leap, a holistic readjustment of our relationship with the natural world. Or it will become an opportunity for the biggest disaster capitalism free-for-all in human history, leaving the world even more brutally cleaved between winners and losers.

When I wrote The Shock Doctrine, I was documenting crimes of the past. The good news is that this is a crime in progress; it is still within our power to stop it. Let's make sure that, this time, the good guys win.

I am The Markets

I am The Markets and I'm sick of people telling me how I feel

People keep saying I'm 'concerned' and 'confused'. It's not like I'm the one to blame for everything going tits up

• The Markets
• guardian.co.uk, Wednesday 20 June 2012 14.28 BST

'I'm not the one who created a whole array of inherently flawed financial instruments that no one properly understood.' Photograph: Andrea Comas/Reuters

Two quotes from yesterday's Guardian got me. "Markets have become increasingly concerned that the austerity programmes in the eurozone are causing a vicious circle of recession", and "Markets were confused by mixed messages from European capitals". I have only one word of reply. Bollocks. Did anyone phone me to ask how I, The Markets, was feeling about these subjects? Did they hell?

So let me get things straight. I am not in the slightest bit concerned about the austerity programmes in the eurozone. I am entirely indifferent to whether Greece and Spain get bailed out, go bankrupt or both. Just as I'm not at all bothered if Germany gets any of its money back.

I existed long before someone invented the eurozone and I will be around long after it has ceased to exist. I'm not in the caring business. I'm a trader. Someone has something they want to sell, someone has something they want to buy. End of. Whether people are flogging something of value or billions of pounds of worthless debt is entirely irrelevant to me. I'm just a mechanism for other people's greed and inefficiency. Neither am I in any way confused. Quite the opposite. I see everything with a steely-eyed clarity. The confusion is all yours.

But while we're on the subject of me, let me tell you how I really am feeling. As you might have gathered, I am pretty damned pissed off. I am sick and tired of everyone making judgments about my emotional state of mind without making any effort to talk to me, think sensibly about me or hack my phone. It's both lazy and insulting, but I've rather got used to it as it goes with the territory. What annoys me most is the way all this talk of me being concerned and confused makes it sounds like I'm implicated in the business of everything going tits up.

I will not be the fall guy. I have done nothing wrong. I am merely the blank canvas for other people's incompetence. I'm not the one who created a whole array of inherently flawed financial instruments that no one properly understood. I'm not the idiot who decided property prices were going to go up for ever and ever and that every country could max out its credit card. I'm not the out-of-my-depth chancellor of the exchequer trying to convince both myself and the country that I have the situation in hand and that I know what I'm doing.

None of that is anything to do with me. If anyone had wanted to set up a more straightforward and fairer market, I would have been OK with that. So, a final word to the wise. Remember who the real culprits are. It's they who are concerned and confused. Though not on your behalf. What they are concerned and confused about is how to get you to pay for the decisions they shouldn't have made in the first place.

As told to John Crace