'People will forgive you for being wrong, but they will never forgive you for being right - especially if events prove you right while proving them wrong.' Thomas Sowell
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Wednesday, 21 November 2012
The edifice of marriage is always worth repairing
Wedded bliss doesn't exist - but a deeper passion does happen.

The Queen and Prince Philip were married on November 20, 1947 Photo: PA
There are innumerable reasons to admire our monarch, but 65 years of conjugal accord comes close to topping the list. Note that I do not use the trite expression “wedded bliss”. I have yet to meet any long-hitched couple who’ve been skipping around in a permanent state of ecstasy for multiple decades. Most lengthy relationships are only one part romance to two parts endurance test. Many people claim they’re never bored in their marriage, when what they really mean is they are yoked to someone who takes eccentricity and intransigence to new heights of bloody-mindedness.
Even when you do have the great good fortune to be married to someone interesting, they can’t be riveting over the cornflakes every day for 50 years. My own husband is a walking compendium of intriguing facts, but I still want to sink an axe into his skull every time he mentions local planning regs. It’s no wonder that when the late Anne Bancroft was asked the secret of her 41-year marriage to Mel Brooks, she growled, “Just working hard.” I bet the Queen and the Duke of Edinburgh would concur with that: not only have they had to head up “the Firm” for 65 gruelling years, they have also had to support three of their children through equally testing matrimonial disappointments.
I couldn’t help but imagine the Duke sending a salute across the ether to retired Navy officer Nick Crews, whose excoriating email to his divorced children bemoaned their “copulation-driven” splits. I don’t imagine Crews is any more prudish than most naval men of his ilk – more likely he believes it’s weedy to abandon a decent spouse for the sake of erotic diversion. In the not-so-distant past, couples worked their way through such indiscretions in the same way they would tackle financial or medical problems: there may have been damage to the render and chimney pots, but nothing that troubled the whole stately edifice. But we Generation X types are too recreation-minded to bother with tedious repairs; it’s no wonder we find the long-entwined so mesmerising, yet baffling.
I have had some fun imagining what Crews would say about the female banker who reportedly divorced her husband because of his “boring attitude” to sex. I imagine it would be something along the lines of, “Brace up woman! My generation didn’t get to where we are today without enduring a spot of sexual tedium.” As any marital veteran will tell you, you can cherish a passion for your spouse that’s far deeper than mere sexual flames. However, you may have to stick in your marriage for a fair few decades to appreciate that wisdom.
The pragmatic art of Virender Sehwag
Ed Smith
November 21, 2012
The conventional definition of mental strength is much too narrow. Mental strength is not only about guts and determination, sacrifice and suffering. It is also about holding your nerve, about protecting your self-belief under criticism. It is about saying: "I know what works for me. Sometimes my style of play will look terrible. But over time, I will deliver. And I won't become like everyone else just to avoid criticism." That takes real guts, too. In fact, the justified refusal to compromise your strengths is the ultimate form of mental strength.
By that measure, Virender Sehwag has exceptional mental strength. As he approaches his 100th Test match, we will hear a lot about Sehwag's remarkable hand-eye coordination, his natural ball-striking, his gift of timing and power. But those strengths needed to be nurtured, to be protected from the many voices that demanded that Sehwag curb his natural instincts and play a different way. Sehwag mastered one of the hardest tricks in sport: he reached an accommodation with his own flaws. He recognised that he could not iron out his weaknesses without losing his voice. In simple terms, he stayed true to himself. The whole game is much richer because he did just that.
I first watched Sehwag when Kent played India in 2002. Even then, there was a lot of talk about what he couldn't do - that he couldn't resist going for his shots, that he got out too easily, that he didn't adapt. I noticed something different. It wasn't the way he hit the bad balls for four. It was the way he dispatched the good ones. The bowlers ran up and bowled on a length; Sehwag then drove those length balls for four, all along the ground, with very little apparent risk. Not many players can do that. It was a pattern that would be repeated for 100 Tests.
If Sehwag's mental resilience is underestimated, so is his technique - at least certain strands of his technique. What struck me that day in 2002 was the purity of his bat swing, how squarely the bat face met the ball on impact. And how often he middled the ball.
Isn't that, surely, a central component of a "good technique"? Yes, Rahul Dravid and Sachin Tendulkar developed more sophisticated techniques that could adapt to difficult pitches. And adaptability, of course, is the ultimate gauge of the ideal all-round technique. But in terms of a technique that makes the best possible contact with a ball flying in a straight line at 85mph, I do not think I've seen a better one than Sehwag's. God-given talent alone - a good eye and fast hands - will not allow you to hit that many balls for four.
Cricket has long misunderstood technique. For too long, the word has been wrongly linked to obduracy and self-denial. Technique is simply a set of skills that allows you to respond to the challenges of your sport. It is as much about attacking options as watertight defence. It is Lionel Messi's exceptional technique, his control of the ball, that allows him to play with such flair for Barcelona. It is Roger Federer's basic technique that allows him to play such a dazzling array of shots from any part of the tennis court.
So it is with Sehwag. It is his technical mastery of attacking shots that puts extraordinary pressure on the bowler. I remember hearing from Stuart Clark when Australia were about to play the Rest of the World XI in 2005. "Just had a bowlers' meeting," Clark explained, "the area of the pitch we're supposed to land it on against Sehwag is about two millimetres by two millimetres!" A fraction full: expect to be driven for four. A fraction short: expect to be punched off the back foot for four.
Sehwag takes boundary hitting very seriously. It is a skill borne of deep attention to detail: you don't become so good at something without loving it. Many great batsmen sit in the dressing room talking about how the players in the middle are missing out on singles. Sehwag, apparently, pipes up when someone misses an attacking opportunity. "He missed a four!" he will say regretfully.
| In terms of a technique that makes the best possible contact with a ball flying in a straight line at 85mph, I do not think I've seen a better one than Sehwag's. God-given talent alone will not allow you to hit that many balls for four | |||
He also knows which bowlers to target. Aakash Chopra recalls how ruthlessly Sehwag seized on the most vulnerable bowler. He knew exactly which bowlers he could destroy. That takes intelligence as well as self-awareness. And it is a huge benefit to the team. A batsman who can "knock out" one of the opposition's bowlers changes the whole balance of the match. If one bowler effectively cannot bowl when Sehwag is at the wicket, then the others tire much more quickly.
Like all great players, Sehwag developed a game that suited him. Dravid once told me that Brian Lara and Tendulkar were so talented that they could regularly score Test hundreds in three or four hours. But Dravid felt he had to be prepared to bat for more like five or six hours for his hundreds. Quite simply, in order to score as heavily as Lara and Tendulkar, Dravid thought he had to bat for more balls. Every batsman has to face up to a version of that calculation: what is my natural tempo, what is the appropriate amount of risk for my game?
But there are two sides to that equation. First, there is time. Secondly, there is run rate. Dravid calculated that he possessed the defensive technique and psychological skills to spend more time in the middle than most great players. So he would compromise on run rate and extend his occupation of the crease.
Sehwag asked the same question but reached the opposite conclusion. Instead of facing more balls, how about scoring more runs off the balls that he did face? Sehwag's judgement of his own game, just like Dravid's, has been fully vindicated by his record. Here is the crucial point. Sehwag's approach is not "reckless" or "naïve". It is deeply pragmatic.
Steve Waugh said that Sehwag is the ultimate "KISS" player: Keep It Simple, Stupid. But that is easier said than done. After a series of nicks to the slips, it would have been tempting for Sehwag completely to remodel his technique. But he had the courage to stick to his method and the conviction that when he got back on a pitch that suited him, he would make it pay. After a sparkling hundred in his 99th Test, Sehwag now reaches another century. He is looking to be proved right yet again.
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The limited-overs batsman
who revolutionised Test
cricket
Sehwag's
ability to use skills seemingly made for ODIs in the long game, and his
instinct and fearlessness make him one of cricket's most compelling
sights
John Wright
November 22, 2012
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Less than a year ago, I woke up on the morning of the second Test
between Australia and New Zealand in Hobart with the news that Viru had become only the second man to a double-hundred in ODIs.
My first thought was, "About time."
To me, Virender Sehwag has been the most exciting player I've watched,
bar none. Yes, I know I belong to the generation that played against
Viv, but having seen more of Viru than Viv, that's where I come from.
With Viru, you never know what's going to happen. Sometimes his batting
doesn't work, sometimes it can be frustrating. When it works, though, he
shakes up a game and turns it on its head. In Hobart that day, I
thought that had Viru batted in ODI cricket the way he did in Tests, he
could have got five double-hundreds. Or more.
But it is in Test cricket that Viru has shown us his genius. He has
revolutionised Test batting, changed the way people look at openers, and
made such an impact on the game that the rafters shake when he gets
going.
Viru's 99 Tests, like his batting, seem to have gone by at top speed. A
hundred Tests is a telling number, but then so are two triple-centuries,
a strike rate of above 80 in Tests, 8400 Test runs, and the
aforementioned double-hundred (off 149 balls).
It is always hard to judge a player in his first Test, but by the time
Viru had played about a dozen, I did think that he had it in him to
become something. For his first 30-odd Tests, I worked with Viru as his
coach and it was a sheer delight to see him grow.
He came into the team in the guise of this middle-order batsman who had
grown up on Indian wickets who could smash it everywhere. In about two
years and a bit, he became a world-class Test opener with powers feared
by all opposition. Over the rest of his career, he has become one of the
greatest openers in the history of the game. People don't normally ever
do that - go from being a middle-order batsman in India to opening in
Test match cricket and producing outstanding performances all over the
world.
What Viru was able to do was play tricks on cricket's very framework. If
middle-order batsmen are asked to open the innings, they go into
existential dilemmas, modify their game, work on technique. Many fail, a
few cope. You will have heard all those stories.
Viru was different; he had no such crisis. He opened in Tests the way he
had batted in the middle order - still smashing it. He didn't redefine
his game because of his batting position. He redefined the position with
his batting. I do not use the word genius casually.
I first met Viru in 2000, when he joined the squad to play the one-dayers
against Zimbabwe, my first full series as coach of India. He looked a
lovely kid - shy, with a mischievous smile, still innocent and
wide-eyed, like many of the young Indians coming into the side.
Three months later, he made me sit up when he scored 58 against Australia in the Bangalore ODI. It was an innings of timing and confidence against bowlers like McGrath and Warne.
We moved him into the opening slot in ODIs in a tri-series in Sri Lanka
for two reasons: we had opening problems, and Viru kept getting out
trying to slog the spinners in the middle overs. He nailed opening the
batting beautifully - with it, he solved our problems and found he could
play his game at its fullest. It should have been a different matter in
Tests.
In Test matches he had a reasonable start as a No. 6, with a century on debut
in South Africa and two fifties. We were struggling with Test openers
and Sourav and I decided to gamble by sticking him in at the top of the
order at Lord's, in only his sixth Test.
When we talked to him about the job, he didn't look like he was too
worried about opening. He certainly didn't express it to me (and we had
begun to speak very freely to each other by then). In his first innings
as a Test opener, Viru was the team's top scorer, with 84. Then, when I
saw him on a green wicket in Trent Bridge, in the second Test, I thought, "This guy is serious." He got a century and didn't look back.
Viru's coach in Delhi taught him to have a beautiful, straight backlift,
so when he defends he is nicely straight and late. His attacking game
wasn't too bad either. He could play so late and generate such bat speed
that if you were a few inches off target on the off side, the ball was
gone. Anything a bit straight was whipped through midwicket. He could
also use the pace of the ball to score more effectively than most in the
area between point and third man.
Early on, we widened his stance a little, and I used to encourage him to
keep his head very still and not let it move sideways. When his head is
perfectly still, like with any batsman, it allows him to play his late
options and makes the most of his sublime balance. He is a great opener,
though, because, along with everything else, he is fearless.
| One of the things that I think helped him find his feet in cricket and stay grounded was that he accepted his fate. If he nicked something, he accepted it and wouldn't worry about it | |||
Maybe he enjoys opening because he goes out to a clean slate. There are
no wickets down, there's no responsibility like there would be coming in
at six with four down. He goes in without any numbers and can do what
he has said he does: see the ball, hit the ball. In a game filled with
jargon and technique and dissection, it is like Viru knows why the great
baseball catcher and manager Yogi Berra made total sense when he said:
"How can you think and hit at the same time?"
Viru's instinct sweeps him away, and it is what makes him an attacking
batsman. At a basic level, he must sense that instinct is swifter and
more accurate than thought. Thought gets in the way. When batsmen are
playing well, everyone goes by instinct, but Viru had that coupled with
intrinsic fearlessness. It doesn't matter what the game situation is,
who is bowling, what the wicket is doing. He sees the ball and he hits
it - for four if he can.
As captain, batting partner or coach, it is best not to get in his way
or try to complicate him. It would ruin Virender Sehwag. He is a natural
in more ways than one.
He is one of the best balanced players I've seen. Plus, he catches like
he is picking apples, and in those endless beep (fitness) tests we put
the team through, he would turn on a dime. He was effortless at changing
direction and caught everyone on the turn.
One of the other things that I think helped him find his feet in
cricket and stay grounded was that he accepted his fate. If he nicked
something, he accepted it and wouldn't worry about it. It was not that
he didn't experience disappointment or didn't care, but he wasn't
someone who beat himself up too much. What was over was over and he
would start his next innings.
I don't know if that is what you call fatalism. Once, we flew into
Melbourne in a storm and the plane was getting tossed around a little.
He took one look at my face - I'm not the best of fliers - and started
laughing. "What're you laughing at?" I asked him, and he said, "Relax,
John, if the plane goes down, it goes down. There's nothing we can do
about it." It didn't make me a better flier but it told me a little more
about Viru.
The only thing that frustrated me, and that had me get stuck into him,
was that for the team's sake, there were times when he needed to rein it
in a little. But I knew that too much of that could ruin him. People
talk about our little incident at The Oval, when I upbraided him. I made
an example of Viru because I wanted the rest of the boys to understand
that you have to adapt your play to the team's need to win the match.
We sorted that out later, and to his credit, he got over it and we
remained mates. After we won the series in Pakistan in 2004, he insisted
that I be part of the awards ceremony. I tended to avoid them because
the limelight and celebration, I thought, belonged to the players. Viru
had noticed this. After the victory he put his arm around my shoulder.
"This time, John," he said, "you're coming with me", and dragged me down
the stairs of the Rawalpindi dressing room to be with the team.
Viru is the only player I've watched who has pulled off a game suited
for ODIs in Test cricket. If he had played ODIs like he played Test
matches, he would have had much more success. In ODI cricket, I think he
tries to up the tempo when he doesn't need to; he has already pushed
the envelope as far as it can go.
Today he is 34, a senior player, a father, and not the cheeky kid I
first met, though his smile still seems to contains its old mischief. I
would love to believe that he has a lot of good cricket left in him, but
all batsmen know that when they get to around 35, they have to work
doubly hard on their fitness. It's not going to get easier but he can
keep going for as long as he loves the game and trusts his instincts.
On his 100th Test, I would like to say to him: very well played Viru and
thanks for the entertainment. Remember, though, that what we talked
about still stands - that it's not enough to have big scores; the great
ones are those who get the big scores consistently.
John Wright coached India and New Zealand and played 82 Tests for the latter
© ESPN EMEA Ltd.
Tuesday, 20 November 2012
An authentic Indian fascism
PRAVEEN SWAMI

PTIThackeray offered violence as liberation to educated young men without prospects.
TOPICS
politics
“Fascism”, wrote the great Marxist intellectual Antonio Gramsci, in a treatise Balasaheb Keshav Thackeray likely never read but demonstrated a robust grasp of through his lifetime, “has presented itself as the anti-party; has opened its gates to all applicants; has with its promise of impunity enabled a formless multitude to cover over the savage outpourings of passions, hatreds and desires with a varnish of vague and nebulous political ideals. Fascism has thus become a question of social mores: it has become identified with the barbaric and anti-social psychology of certain strata of the Italian people which have not yet been modified by a new tradition, by education, by living together in a well-ordered and well-administered state”.
Ever since Thackeray’s passing, many of India’s most influential voices have joined in the kind of lamentation normally reserved for saints and movie stars. Ajay Devgn described him as “a man of vision”; Ram Gopal Varma as “the true epitome of power”. Amitabh Bachchan “admired his grit”; Lata Mangeshkar felt “orphaned”. Even President Pranab Mukherjee felt compelled to describe Thackeray’s death as an “irreparable loss”. The harshest word grovelling television reporters seemed able to summon was “divisive”.
It is tempting to attribute this nauseous chorus to fear or obsequiousness. Yet, there is a deeper pathology at work. In 1967, Thackeray told the newspaper Navakal: “It is a Hitler that is needed in India today”. This is the legacy India’s reliably anti-republican elite has joined in mourning.
Thackeray will be remembered for many things, including the savage communal violence of 1992-1993. He was not, however, the inventor of such mass killing, nor its most able practitioner. Instead, Thackeray’s genius was giving shape to an authentically Indian Fascism.
His fascism was a utopian enterprise — but not in the commonly-understood sense. The Left, a powerful force in the world where Thackeray’s project was born, held out the prospect of a new, egalitarian world. The Congress held the keys to a more mundane, but perhaps more real, earthly paradise: the small-time municipal racket; even the greater ones that led to apartments on Marine Drive. Thackeray’s Shiv Sena wore many veneers: in its time, it was anti-south Indian, anti-north Indian, anti-Muslim. It offered no kind of paradise, though. It seduced mainly by promising the opportunity to kick someone’s head in.
Nostalgic accounts of Mumbai in the 1960s and 1970s represent it as a cultural melting pot; a place of opportunity. It was also a living hell. Half of Mumbai’s population, S. Geetha and Madhura Swaminathan recorded in 1995, is packed into slums that occupy only 6 per cent of its land-area. Three-quarters of girls, and more than two-thirds of boys, are undernourished. Three-quarters of the city’s formal housing stock, Mike Davies has noted, consisted of one-room tenements where households of six people or more were crammed “in 15 square meters; the latrine is usually shared with six other families”.
From the 1970s, Girangaon — Mumbai’s “village of factories” — entered a state of terminal decline, further aiding the Sena project. In 1982, when trade union leader Datta Samant led the great textile strike, over 240,000 people worked in Girangaon. Inside of a decade, few of them had jobs. The land on which the mills stood had become fabulously expensive, and owners simply allowed their enterprises to turn terminally ill until the government allowed them to sell.
Thackeray mined gold in these sewers — building a politics that gave voice to the rage of educated young men without prospects, and offering violence as liberation. It mattered little to the rank and file Shiv Sena cadre precisely who the targets of their rage were: south Indian and Gujarati small-business owners; Left-wing trade union activists; Muslims; north Indian economic migrants.
The intimate relationship between Mr. Bachchan and Thackeray is thus no surprise. In the 1975 Yash Chopra-directed hit Deewar, Mr. Bachchan rejects his trade-union heritage, and rebels by turning to crime. He is killed, in the end, by his good-cop brother. The Shiv Sena was a product of precisely this zeitgeist; its recruits cheered, like so many other young Indians, for the Bad Mr. Bachchan.
Like the mafia of Dawood Ibrahim Kaskar — which, it ought to be remembered, flourished in the same Mumbai — the Sena offered patronage, profit and power. Its core business, though, was the provision of masculinity. There are no great Sena-run schools, hospitals or charities; good works were not part of its language.
The fascist threat
Fascism, Gramsci understood, was the excrement of a dysfunctional polity: its consequence, not its cause. Liberal India’s great failure has been its effort to seek accommodation with fascism: neither Thackeray’s movie-industry fans, nor Mr. Mukherjee are, after all, ideological reactionaries. The Congress, the epicentre of liberal Indian political culture, has consistently compromised with communalism; indeed, it is no coincidence that it benignly presided over Thackeray’s rise, all the way to carnage in 1992-1993 and after.
This historic failure has been mitigated by the country’s enormous diversity. The fascisms of Thackeray, of Kashmiri Islamists, of Khalistanis, of Bihar’s Ranvir Sena: all these remained provincial, or municipal. Even the great rise of Hindutva fascism in 1992-1993 eventually crashed in the face of Indian electoral diversity.
Yet, we cannot take this success for granted. Fascism is a politics of the young: it is no coincidence that Thackeray, until almost the end, dyed his hair and wore make-up to conceal his wrinkles. From now until 2026, youth populations will continue to rise in some of India’s most fragile polities — among them, Bihar, Uttar Pradesh, Haryana, Maharashtra, and Jammu & Kashmir.
In a path-breaking 1968 essay, Herbert Moller noted how the emergence of children born between 1900 and 1914 on the job market — “a cohort”, he noted, “more numerous than any earlier ones” — helped propel the Nazi rise in Germany. Historian Paul Madden, in a 1983 study of the early membership of the Nazi party, found that it “was a young, overwhelmingly masculine movement which drew a disproportionately large percentage of its membership from the lower middle class and from the Mittelstand [small businesses]”.
For years now, as economic change has made it ever-harder for masses of people to build lives of dignity and civic participation, we have seen the inexorable rise of an as-yet inchoate youth reaction. From the gangs of violent predators who have raped women in Haryana, to the young Hindu and Muslim bigots who have spearheaded the recent waves of communal violence, street politics is ever more driven by a dysfunctional masculinity. Thackeray’s successes in tapping this generation’s rage will, without doubt, be drawn on in years to come by other purveyors of violence.
India desperately needs a political project that makes possible another, progressive masculinity, built around new visions for everything from culture, the family and economic justice. No vanguard for such a project, though, is yet in sight.
Sunday, 18 November 2012
Is this the start of a new coalition against the corporate scorpions?

Mothercare chairman Alan Parker has added his voice to those businesses speaking out against those who avoid paying tax in the UK. Photograph: Graham Turner for the Guardian
It's a well-known fable. The scorpion wants to cross a river and pleads with the reluctant frog to carry him on his back; it would be pointless to sting the frog because that way both would drown. Halfway across the river the scorpion stings, dooming both. Why? asks the dying frog. Because it is in my nature, replies the scorpion.
Too many owners and managers of British companies, along with the Big Four accountancy firms that provide them advice on how to structure their affairs to evade and avoid taxation, are like the scorpion. They just can't help themselves from behaving badly, even if it brings everyone down. It is in their nature.
As it becomes clear that we are living through the most protracted period of economic depression for more than 100 years, the result of not just policy mistakes but the way Britain has done capitalism, business itself is beginning to ask the first tough questions about what is wrong. There always was a distinction between good and bad capitalism, but so far the critics of bad capitalism have not strayed far beyond the leader of the Labourparty, some trade unionists, business secretary Vince Cable, the odd business maverick and one or two liberal commentators. But last week some serious companies weighed in, plainly worried about the corporate scorpions riding on their backs.
Andy Street, managing director of John Lewis, broke cover to say that multinational companies trading in the UK but deploying overseas tax havens necessarily must "out-invest and ultimately out-trade" businesses paying full taxes in the UK, who now risk being driven out of business. "Ultimately there will not be a tax base in the UK."
Mothercare chairman Alan Parker joined in. "Unfair pricing from international UK tax dodgers puts our long-term ability to survive and grow under threat," he said. Sebastian James, chief executive of Dixons, tweeted that he agreed with Andy Street: "Retailers making profits in the UK should pay tax in the UK."
Unlike in manufacturing, retailing still has a critical mass of British-owned and British-based companies that have collective heft. With Comet recently joining a lengthening list of retailers going into receivership, Street, Parker and James are breaking ranks from the default position of British business that whatever leaves the mouth of a Tory politician must be good and the words of a Labour politician must be bad.
The ritual ideological incantations of, say, the Free Enterprise Group in the Conservative party – that all British business needs is yet more labour market deregulation, further dismantling of welfarism and striking a detached bargain with the EU – have hitherto gone unchallenged by business. Now a broader view of what is wrong is emerging, triggered by business itself.
What prompted Street's intervention was the disastrous performance by Amazon's public policy director, Andrew Cecil, before the House of Commons public accounts committee, aided and abetted by two flanking cameos from Starbucks and Google. The three scorpions were being quizzed about their tax dodging, but the comptroller of the National Audit Office, Amyas Morse, felt that the lack of evidence brought to the committee by Amazon was " insulting". Meanwhile, Starbucks' claim that it made no money in the UK was palpably disingenuous and persuaded none of the MPs. And Google admitted in effect that it does what it does because it can. It is just in a scorpion's nature.
Senior Treasury officials have worried for many years about the precariousness of the UK's corporate tax base and the ease with which companies could use a combination of transfer pricing and offshore tax havens to avoid UK tax. Mortal threats come from the rise of private equity – for example, private equity-owned Boots is now domiciled in Zug in Switzerland – and the emerging dominance of foreign multinationals in the UK because of our careless indifference both to who owns our companies and how they organise their operations. They need addressing.
For a long time, the arguments about the British economy have been defined by exchanges between opposing poles of the Free Enterprise Group and advocates of a bastard Keynesianism. Director generals of the CBI may have privately conceded that the argument needs to be broader and more sophisticated; that an overvalued exchange rate, the shortcomings of the financial system, the bias against innovation or the abuse of tax havens were all chronic problems. But persuading the powerful CEOs within the CBI to back them has been impossible.
Importers want a high pound. Banks allowed no criticism. Nobody wants to be on the side of high taxation by inveighing against tax havens or to give Labour any succour if it can be helped. A candidate for CBI director general who withdrew from the final shortlist to succeed the outgoing Richard Lambert in late 2010 told me that the job allowed little scope beyond urging more and better training, on which everybody could agree. On many big issues, the CBI was mute or followed the Tory line. Indeed, Lambert, ready to attack wildly overpaid CEOs as risking being aliens in their own country, was felt to have overstepped the line.
At last there is a breaking of ranks. Desperate economic circumstances and a chancellor more anxious to score political points than develop an imaginative economic policy are forcing a transformation in established positions. John Cridland, the current director general, has used the space to develop a more sophisticated policy agenda than his predecessors were allowed. And now British-based retailers are speaking out.
But any effective move against the scorpions requires the state to act and the more it can act with others the more effective it will be. Tax havens were a barely mentioned part of Britain's most effective postwar industrial policy: the swath of concessions used to support the growth of the City. We sponsor more of them than any other advanced country. That has to be reversed. There are many possibilities, ranging from taxing companies on their turnover in the UK to outlawing the use of tax havens, action that is best delivered if the EU can move together, but this is always opposed by the British.
Our fifth-columnist Eurosceptics, allies of the scorpions, are happier that the UK corporate tax base is destroyed and the British economy is owned by foreigners indifferent to their public obligations than to act together with Europeans to further joint British and European interests. Mr Miliband and the Labour party say they are for a better capitalism, against tax havens and are pro-Europeans. Now there is an opportunity to say it and to build a new coalition. Let's hear them.
Saturday, 17 November 2012
‘Those Who’ve Tried To Change The System Via Elections Have Ended Up Being Changed By It’
On the anti-corruption movement that has implications for politics, media and the national discourse
Saba Naqvi Interviews Arundhati Roy
In August last year, Arundhati Roy wrote a piece that raised important questions about the Anna Hazare movement. A lot has changed since then and Arvind Kejriwal and Anna have taken divergent paths. Kejriwal will launch a political party on November 26 and in the last few months he has, along with lawyer Prashant Bhushan, taken on powerful politicians and corporates. Saba Naqvi sent Arundhati five questions on e-mail to get her views on what is an evolving situation that has implications for politics, media and the national discourse. Here are Arundhati’s very detailed answers.
What do you make of these many corruption exposes and do you see this as a healthy development?
It’s an interesting development. The good thing about it is that it gives us an insight into how the networks of power connect and interlock. The worrying thing is that each scam pushes the last one out of the way, and life goes on. If all we will get out of it is an extra-acrimonious election campaign, it can only raise the bar of what our rulers know we can tolerate, or be conned into tolerating. Scams smaller than a few lakh crores will not even catch our attention. In election season, for political parties to accuse each other of corruption or doing shady deals with corporations is not new—remember the BJP and the Shiv Sena’s campaign against Enron? Advani called it ‘Looting through liberalisation’. They won that election in Maharashtra, scrapped the contract between Enron and the Congress government, and then signed a far worse one!
"Each scam pushes the last out of the way. If all it ends in is an extra-acrimonious election campaign, it’ll only raise the bar of what our rulers think we can tolerate."
Also worrying is the fact that some of these ‘exposes’ are strategic leaks from politicians and business houses who are spilling the beans on each other, hoping to get ahead of their rivals. Sometimes it’s across party lines, sometimes it’s intra-party jockeying. It’s being done brilliantly, and those who are being used as clearing houses to front these campaigns may not always be aware that this is the case. If in this process there was some attrition and corrupt people were being weeded out of the political arena, it would have been encouraging. But those who have been ‘exposed’—Salman Khurshid, Robert Vadra, Gadkari—have actually been embraced tighter by their parties. Politicians are aware of the fact that being accused or even convicted of corruption does not always make a dent in their popularity. Mayawati, Jayalalitha, Jaganmohan Reddy—they remain hugely popular leaders despite the charges that have been brought against them. While ordinary people are infuriated by corruption, it does seem as though when it comes to voting, their calculations are more shrewd, more complicated. They don’t necessarily vote for Nice Folks.
Why do you think stories that the media knew about but never carried or paid a price for carrying are suddenly coming out like a rash and new details are emerging in the process?
Just because there is a new kid in town, we mustn’t forget that some media houses and several other groups and individuals, at cost to themselves, have played a part in exposing major scams, like the Commonwealth games, 2G and Coal-gate, which shone the light on private corporations and sections of the media as well. Ironically, the Anna Hazare movement last year concentrated solely on politicians and let the others off the hook. But you’re right, there are cases in which the facts were known, but they remained unpublished until now. And suddenly it’s raining corruption scams now—some are even being recycled. Corruption has become so blatant, so pathological that those involved don’t even try very hard to hide their tracks. Anna Hazare, Arvind Kejriwal and Prashant Bhushan have all played an important part in making it hard for the media to elide the issue. But the sudden rash of exposes also has to do with the growing competition between the various coalitions of politicians, mega corporations and the media houses they own. For example, I do believe there is some substance to the speculation that the expose of Gadkari has to do with Narendra Modi—backed by big business—positioning himself to become the BJP’s prime ministerial candidate and trying to get hostile lobbies out of the way. Now since it’s the era of corruption and balancesheets—blood is passe. It’s strange how often you hear commentators saying that it’s time to move on from the Sangh parivar’s Gujarat pogrom against Muslims in 2002 and to look ahead. The Congress party-led ’84 massacre of Sikhs in Delhi has been forgotten too. Killers and fascists are OK as long as they are not financially corrupt? What the newest anti-corruption movement led by Kejriwal and Bhushan is doing is important work that ought really to be done by the media and investigation agencies, and by people pressurising the system from outside. I’m not sure a new political party that is going to fight elections is the right vehicle. Given how elections work in India, given the amount of money and the machinations that go into them, what does this decision to stand for elections mean? There is a reason why the big political parties gleefully invite everybody to stand for elections. They know they control the arena, they want to turn newcomers into clowns in their circus, and wear them down by having to perform endlessly before a carnivorous media.
"While ordinary people are infuriated by corruption, it seems, when it comes to voting, their calculations are more shrewd. They don’t always vote for Nice Folks."
Many have walked this plank before. If, for example, Kejriwal’s party wins just a few seats, or none at all, what would it imply? That the majority of Indian people are pro-corruption? What stands exposed in all of this, other than the grand nexus between politicians and business houses, is that the media is struggling with its role as the ‘Fourth Estate’. A new political party, however good or honest, is not going to be able to resolve that anytime soon, because that is a structural problem. The media is hobbled by its economics. Recently in an interview, Vineet Jain of the Times Group was disarmingly frank when he said the Times Group was not in the business of news, but in the business of advertising. Apart from this, we have the problem of paid news and of outright ownership. Industrialists have always owned newspapers, but the scale of the operation has changed. Reliance Industries Ltd (RIL), for example, recently bought 95 per cent shares in Infotel, a TV consortium that controls 27 TV news and entertainment channels. Sometimes it’s the other way around: we have media houses own mining companies. Dainik Bhaskar, with a readership of 17 million, owns 69 companies with interests in mining, power generation, real estate and textiles. And then, of course, we have the newspapers and TV channels owned by politicians like Karunanidhi, Jayalalitha, Jaganmohan Reddy and others.
As the boundary between big business, big politics and news melts away, it’s becoming harder for journalists and reporters to do what was once considered an almost sacred duty—to comfort the afflicted and afflict the comfortable. That ideal has been more or less turned on its head.
‘Being against corruption is not ideology’. (Photograph by Sanjay Rawat)
Can anti-corruption be a valid plank for a political party?
I don’t think so. Corrupt politicians have shown themselves to be hugely popular. I hope Arvind Kejriwal and Prashant Bhushan’s party will have more to its plank than just anti-corruption.
"Since it’s the corruption and balancesheets era, blood is passe. We are asked to move on from the 2002 pogrom against Muslims in Gujarat and to look ahead."
I think the middle-class definition of corruption—as a sort of accounting problem—isn’t necessarily everybody else’s definition. Corruption is a symptom of a widening gap between the powerful and the powerless which, in India, is one of the worst in the world. That is what needs to be addressed. Moral policing, or even actual policing, can’t be a solution. What is that meant to achieve? Making an unjust system cleaner and more efficient? Setting up a parallel government with tens of thousands of police and bureaucrats, which is what the Jan Lokpal Bill envisages, will not solve the problem. Have our police and bureaucrats shown themselves to be guardians of the poor? Which pool will these new, honest souls be culled from? In a country where a majority of the population is illegitimate in the ways in which they live and work, the Jan Lokpal Bill could easily become a weapon in the hands of the middle classes—“Remove these filthy illegal slums, clear away these illegal vendors crowding the pavements”—and so on. The point is how do we define corruption? If a corporate house pays a thousand crore bribe to secure a contract for a coal-field, it’s corruption. If a voter takes a thousand rupees to vote for a particular politician, it’s corruption too. If a samosa-seller pays a cop a hundred-rupee bribe for a place on the pavement, that too is corruption. But are they all the same thing? I do not mean to suggest that there shouldn’t be a grievance redressal mechanism to monitor corruption, of course there should be. But that will not solve the big problem, because the big players only become better at covering their tracks.
For a political party to view the politics of this vast and complex country through the lens of corruption is—to put it politely—inadequate. Can we understand or address the politics of caste and class, ethnicity, gender, religious chauvinism, the whole of our political history, the current process of environmental devastation—and the other myriad things that make India’s engine work, or not work—all through the narrow, brittle lens of corruption? They can only be addressed if you know your people, if you have vision and ideology, not by just changing the props or costumes activists wear on stage when one or the other group accuses them of something or the other. Being against corruption is not in itself a political ideology. Even corrupt people will say they’re against corruption.
Change will come. It has to. But I doubt it will be ushered in by a new political party hoping to change the system by winning elections. Because those who have tried to change the system that way have ended up being changed by it—look what happened to the Communist parties. I think the insurrections taking place in the countryside will move towards the cities, not under any single banner, not in some orderly or revolutionary way, necessarily. It will not be pretty. But it’s inevitable.
Sections of the ruling class see the current exposes as ‘anarchy’. After the Ambani, KG basin and oil issue was raised, there were some commentaries about Kejriwal and “his leftist” friends. Your comments on this.
By ‘anarchy’, I presume they mean chaos, which is not what anarchy means. May I say that what the ruling classes are engaged in today, that is anarchy, by their definition. (By the way, I don’t know which of Arvind Kejriwal’s friends is a ‘leftist’.) Or are we now supposed to collapse ‘chaos’, ‘anarchy’ and the ‘left’ into one big ball of wax?
"As boundaries between big business, politics and news melt, journos find it harder to do what was once sacred duty: comfort the afflicted, afflict the comfortable."
I want to make just one very simple suggestion, and it is far from radical. Let’s say it is just a common minimum programme. We have become a country that is more or less run by private corporations. Let’s look at two of the biggest corporations who rule us today: Reliance and Tatas. Mukesh Ambani, who holds a majority controlling share in RIL, is personally worth $20 billion. RIL has a market capitalisation of $47 billion. Its business interests include petrochemicals, oil, natural gas, polyester fibre, SEZs, fresh food retail, high schools, life sciences research and stem cell storage services. It has a controlling interest in 27 TV news and entertainment channels. It has endowed chairs in foreign universities worth millions of dollars.
The Tatas run more than 100 companies in 80 countries. They are one of India’s largest private sector power companies. They own mines, gas fields, steel plants, phone, cable TV and broadband networks, and run whole townships. They manufacture cars and trucks, own the Taj Hotel chain, Jaguar, Land Rover, Daewoo, Tetley Tea, a publishing company, a chain of bookstores, and a major brand of iodised salt. The Tatas are also hugely invested in foreign universities.
I don’t think that there are corporations like these elsewhere in the world—none with this range of business interests, that control our lives so minutely, that can hold us to ransom and can shut us down as a country if they are unhappy with the deals they are being given. This is the biggest danger facing us.
What our economists like to call a level playing field is actually a machine spinning with a centrifugal force that funnels the poor out like disposable residue, and concentrates wealth in fewer and fewer hands, which is why 100 people have wealth equivalent to 25 per cent of the GDP and hundreds of millions live on less than `20 a day. It is why most of our children suffer from severe malnutrition, why two lakh farmers have killed themselves and why India is home to a majority of the world’s poor.
"Unless mega corporations are reined in, unless cross-ownership of business is regulated, unless media is freed from its control, we are headed for a shipwreck."
Whether you are Communist, Capitalist, Gandhian, Hindutva-ist, Islamist, Feminist, Ambedkarite, Environmentalist, whether you are a farmer, a businessman, journalist, writer, poet, or fool, even if you believe in privatisation and in the new economy—whatever—if you have a modicum of concern or affection, leave alone love, for this country, surely you must see that this is the clear and present danger? Even if these corporations and politicians were scrupulously honest, it is an absurd situation for a country to be in. Unless mega corporations are reined in and limited by legislation, unless the levers of such untrammelled power (which includes the power to buy politics and policymaking, justice, elections and the news) is taken away from them, unless the cross-ownership of businesses is regulated, unless the media is freed from the absolute control of big business, we are headed for a shipwreck. No amount of noise, no amount of anti-corruption campaigns, no amount of elections can stop that.
You have in the past described the system as “hollowed out”. In that case do you see all this as a pantomime?
Pantomime is a harsh word. I see what is happening now as part of the unrest, anger and frustration that is building up in the country. Sometimes the noisiness of it makes it hard to see clearly. But unless we look things in the eye—instead of heading off in strange quixotic directions—we can look forward to the civil war, which has already begun, reaching our doorsteps very soon.
Friday, 16 November 2012
Forget Bermuda, Britain's tax havens are much closer to home
It's easy to point a finger at Amazon and co, but UK-based trusts make it easier than ever for the rich not to pay their share

There are many UK companies that offer trusts 'guaranteed to protect almost all your wealth from inheritance tax'. Photograph: Image Source/Alamy
The hottest ticket this week was a ringside seat for the public accounts committee's roasting of tax-avoiding Starbucks, Google and Amazon. Committee chair Margaret Hodge in full flight gave them a magnificent tongue-lashing, with Tories hot on her heels too, pouring derision on "don't be evil" companies' pretence to make next to no profit as they siphon cash into tax havens. Even the comptroller and auditor general lost his temperand called their evidence "insulting".
These are only opening salvos, as the Germans and French take aim too against companies pretending their profits arise in Bermuda or Luxemburg. John Lewis's managing director is calling on the Treasury to demand tax is paid in the country where profits are made:Amazon made £3.3bn in sales but paid zero UK corporation tax on any of the profits of that income. "They will out-invest and ultimately out-trade us," tax-paying John Lewis protests, unable to compete fairly with tax-shirkers. This should be easy to fix. Vince Cable says he's angry – but HMRC could refuse to accept these companies' accounts.
Everyone can point a shocked finger at foreign giants who bamboozle or intimidate our tax collectors. But the culture of avoidance runs deep. Labour tiptoed round the edge of the tax avoidance industry, chased off by City blusterers who called tougher tax collection a Labour stealth tax. But since the crash, the collapse in tax revenues has created soaring national debt, so the need for the Treasury to collect every penny owed has become more pressing. The culture of getting away with what you can has to give way to a popular understanding that one man's tax dodge is his own community's lost children's centres, libraries and swimming pools. So where does it all begin?
In a sedate Sussex hotel, St James's Place Wealth Management invited a flock of retired people of comfortable means to one of their genteel sales pitches on how to avoid tax. Observing unannounced, I listened to them selling their Rolls Royce anti-tax vehicles and investment funds: one fund was so stellar that it grew in 30 years from £30,000 to £2.7m – and how the room gasped in admiration. Yes, yes, we were all well warned that investments can go down as well as up, but the upside of that £2.7m looked more compelling than any risk. But the real seller for these elderly people concerned ways to avoid "uninvited guests at the sharing out of your estate". Those "uninvited guests" are the rest of the nation's taxpayers.
The atmosphere was impish and jocular, with the taxman as pantomime villain. Shocking stories were told of what befalls the estates of those without cunning advisers. Charles Clore lived abroad to avoid tax, but because he foolishly wanted to be buried "back home", the taxman deemed he was not really resident abroad at all and his whole estate was subject to inheritance tax. Gasps of shock. On screen, up came Prince Philip's whimsical remark that "All money nowadays seems to be produced with a natural homing instinct for the Treasury" – though in his case money makes the reverse journey from the Treasury to his trouser pocket. "Taking the worry out of wealth," was the theme, as one presenter promised: "We can protect your money from the dangers of tax," explaining how to offshore money.
But the big sell is trusts, special ones devised for this company's clients, guaranteed to protect almost all your wealth from inheritance tax. They are right, it can be done easily. Put all moveables and all cash and investments into a discretionary trust, and it passes to your heirs without tax as soon as you die, not even waiting for probate. It counts as a gift so the beneficiaries need pay no tax either. Called a "discretionary trust", as technically St James's are the legal trustees, the discretion in fact remains in all but name with you: the company will do whatever you ask, so you still control the fund and you can still take money from it. But for reasons that defy basic tax fairness, it avoids all inheritance tax. Why?
Even worse, hard-pressed local authorities are denuded by these trusts too. As St James's advisers eagerly pointed out, if you hide away your assets in a trust, it can't be counted when calculating how much you should contribute to your care if you need to go into a residential home. He warned that could be £1,300 a week in fees – more gasps – so why let your council take your money when you can salt it away safely in a trust? Let poorer taxpayers pick up the bill instead.
Richard Murphy, tax campaigner and adviser to the public accounts committee and others, says no one knows how much money passes through these trusts. They are opaque, unregistered and the taxman neither knows if they exist nor what's in them. Far more tax is probably avoided this way than the mere £3bn collected in inheritance tax: only 3.5% of estates pay it – and they may not be the richest. Why any Labour chancellor – or Tory for that matter – lets this dodge persist is a mystery. Inheritance is a neuralgic political topic, ever since the issue panicked Gordon Brown into ducking an election in 2007. But since so few estates pay it, it's hard to see why the 96.5% of ordinary taxpayers who never leave enough to get above the £650,000 couples' inheritance tax allowance would not support ending this loophole for the rich.
Meanwhile, the public accounts committee is summoning back Amazon after this week's "deliberately evasive" display of "outrageous" ignorance by one of their executives: he didn't know who owns their Luxembourg-based holding company that pays a fraction of the UK's tax rate. The return match is not to be missed. Margaret Hodge is calling for complete transparency to stop companies claiming "commercial confidentiality" to hide their accounts. She wants aggressive avoiders to be named and shamed and denied public contracts, and she suggests the public boycott tax avoiders.
On 8 December UK Uncut is protesting against Starbucks, setting up creches, libraries and women's refuges in the coffee shops, as payback for services that might stay open if Starbucks paid fair tax. Is it time the committee looked at how the likes of PricewaterhouseCoopers, KPMG, Accenture and McKinsey devise ever more elaborate tax dodges for their clients, yet with the other hand seize ever fatter contracts from the state they help strip bare of revenues?
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