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Monday 14 April 2014

The Tendulkar Prism



In the 90s, Pakistan were just vastly better at cricket than India, and Pakistanis assumed it had always been so. They viewed Sachin Tendulkar as the leader of a group of wannabes and never-will-bes, not a match-winner. © AFP
In the 90s, Pakistan were just vastly better at cricket than India, and Pakistanis assumed it had always been so. They viewed Sachin Tendulkar as the leader of a group of wannabes and never-will-bes, not a match-winner. © AFP


Sachin Tendulkar’s retirement from limited-overs cricket in December 2012 brought them out in full force. By the time he said goodbye to Test cricket, nearly a year later, they were tired and outnumbered, but clung desperately to their self-created bubble. Beyond the plethora of heartfelt eulogies was a world – mostly confined to the privacy of living rooms and online message boards – where Tendulkar wasn’t the God worshipped by a billion. Here, where contrarians and trolls live, he was far from the match-winner he was made out to be. Inevitably, this universe consisted overwhelmingly of Pakistanis. For a generation of them, Tendulkar’s career wasn’t just the story of arguably the greatest batsman of his era, and unarguably the biggest star in modern cricket, but the story of the prism through which Pakistanis saw their place in the world – though they’d be loathe to admit it.
It seems odd to argue that a foreign sportsman could have such a far-reaching influence on a country’s youth, but the view that Pakistanis had of India – and by extension of Tendulkar – is unique. Their attitude towards the Indian team was how Pakistanis proved they were Pakistani, as the post-Zia nation over the last three decades went from isolation, and in search of recognition, to a place the world knows about – not necessarily for the right reasons. It’s no coincidence that at the time the rest of the cricketing firmament prostrated before Tendulkar, a major Pakistani news channel ran a segment about how Javed Miandad, Younis Khan and Mohammad Yousuf were each his equal.
The rejection of the Hindu – and by definition of India – was how you became Pakistani. From Pakistan’s first tour in 1952-53, when Test captain Abdul Hafeez Kardar took his team only to “monuments and museums that reflected Muslim glories in India, while ignoring the rest” – as described in Shashi Tharoor’s Shadows Across the Playing Fields – to their acceptance of Imran Khan’s opinion that Inzamam-ul-Haq was a better player of pace than Tendulkar, this view of India as the other is hardly restricted to cricket. Ayub Khan (the President of Pakistan 1958 to 1969) was a Sandhurst-trained army officer who said a Muslim soldier was equal to ten Hindu soldiers. He worried about how much of East Pakistan (now Bangladesh) was under “Hindu culture and influence.” Pakistani academic Aasim Sajjad Akhtar believes the country’s ideology “is an anti-Indian ideology. It’s a negation, rather than something that stands up on its own.” Defined by what one is not, rather than what one is.
I grew up in the 1990s, when everyone, barring elite Pakistanis, had access to only one source of news (beyond the dailies): the 9pm TV bulletin Khabarnama. Every day it began with the headlines, followed by the latest from around the country. Ten minutes in, we had the Kashmir update – this was our war, but it wasn’t being fought by us or in our cities (unlike the wars in the 2000s, which aren’t our wars – supposedly – but are being fought by us, in our streets). Popular Urdu literature for children at the time focused on the constant state of war Pakistan found themselves in – Afghanistan in the ’80s, Kashmir in the ’90s, and the whole world in the 2000s, if you read author Ishtiaq Ahmed. The only thing the children of the ’90s, regardless of class and economics, could agree on was that Pakistan was in danger and India was the enemy.
It is in this context that one has to consider Pakistan’s view of Tendulkar. Omar Kureishi, the late Pakistani journalist, once said the only two things that could unite his country were war and cricket – incidentally the only two areas in which Pakistan was directly pitted against its neighbour. For all the mistrust and animosity of India cultivated in us, there were no avenues to release it. The only interaction a Pakistani had then with anything Indian was cricket or Bollywood. The latter was overwhelmingly popular and could never be shunned by the majority; it was, and still is, a guilty pleasure. Uncles and aunties may complain all day about India’s soft power eroding Pakistani culture, and yet, the same uncles and aunties watch every Shah Rukh Khan film that hits the theatres. Thus, the cricket team was how one became Pakistani. As the world changed, the opinions shifted but never the ideologies – until 2004, when India toured Pakistan for the Friendship Series and we were struck by the realisation that those two decades of fostering hostility may have been for naught. History seemed irrelevant during that 40-day tour and India’s Lakshmipathy Balaji became an ironic icon.
But I digress. The Indian cricket team of the ’90s wasn’t even worthy of our revulsion; condescension was more apt. Ayub Khan may have been wrong about the inequality of soldiers but the inequality of the cricketers was obvious. From Javed Miandad hitting the six at Sharjah in 1986 until the 2003 World Cup, Pakistan’s ODI record against India read 44 wins and 21 losses – this is what we saw growing up. Pakistan were just better at cricket than India – and we assumed this had always been so. It was through this barometer that Tendulkar was judged – he was the leader of a group of wannabes and never-will-bes and, therefore, not a match-winner.
As if to lend credence to this hypothesis, Tendulkar didn’t exactly prove us wrong when India played Pakistan. Until that 2003 World Cup, he had scored just two centuries in 41 ODI innings against Pakistan – both in the space of a fortnight in 1996, hence lessening their impact, and one of them in a losing cause. He averaged in the mid-30s. Even more significant for the casual Pakistani fan was that both those hundreds came in the first innings of day games, a time when viewership is much lower than usual. Pakistanis had a simple formula by which they judged India: batting second in day/night matches. This scenario saw Pakistan play to their strength and viewership was at its maximum as well (add Friday in Sharjah to the picture and it would be the most stereotypical of Pakistan-India face-offs in the ’90s). It was here that Tendulkar struggled most. During this phase, he averaged under 30 in 21 innings – batting second against Pakistan – with no hundreds. India won only seven of these 21 matches, with Tendulkar scoring just three fifties. His role in this narrative served only to reinforce biases: India were hopeless at chasing and Tendulkar was not a match-winner.
Pakistan cricketers were macho; they were in-your-face, aggressive and only borderline legal. Tendulkar, on the contrary, was cherubic, slightly effeminate (in voice) and squeaky clean. © Getty Images
Pakistan cricketers were macho; they were in-your-face, aggressive and only borderline legal. Tendulkar, on the contrary, was cherubic, slightly effeminate (in voice) and squeaky clean. © Getty Images
By comparison, his greatest contemporary Brian Lara punished Pakistan like few others. Lara averaged over 50 batting second, and over 70 in games West Indies won – they won more games than they lost against Pakistan during this time. To a Pakistani, the Lara-Tendulkar debate was never a debate.
But why judge Tendulkar only on his record against Pakistan? For a parallel to this story, you have to look no further than Swedish footballer Zlatan Ibrahimovic’s career (until 2012). During the 2006 football World Cup, the English-based Northern Irish manager Martin O’Neill called him the most overrated player in the world and this was accepted as the establishment line. Zlatan dominated the Italian game like few before him, yet the English believed he was far from world class because he never did it against them; a brace against Arsenal for Barcelona did not count, nor did winners in the Milan derby or the El Clásico have any affect. But then he scored four goals in 90 minutes against England (including that overhead kick) in 2012 and the English begrudgingly acknowledged his genius.
It was this line of thinking that Pakistani fans indulged in too. Our bowling attack was the best in the world – until you did it against them you weren’t worthy. The decade saw Pakistan boast probably the most complete generation of bowlers a country has ever had. Thus while the attitude smacked of superiority, unlike that of English football fans, it felt well-earned.
But it’s not merely what he did, but who he was, that alienated Pakistanis. Social conditioning had taught us that the way to live your life was to go for what you believed you deserved rather than waiting for it to come to you. Our cricketers, like our image of Pakistan, were macho; they were in-your-face, aggressive and only borderline legal. Tendulkar, on the contrary, was cherubic, slightly effeminate (in voice) and squeaky clean. While our players were standing in Justice Qayyum’s court to answer allegations of match-fixing, everyone in India was sure Tendulkar would never do such a thing. And it is no surprise that Pakistanis never warmed to Tendulkar. The two great heroes of the post-Wasim generation were Shahid Afridi and Shoaib Akhtar. They were ephemeral, inconsistent, unorthodox and over the top. He was not.
Yet Tendulkar was much more than a cricketer. He became the face of post-liberalisation India – the rise of the country’s middle class coinciding with his own. In cricket writer Ayaz Memon’s words, “Tendulkar became a metaphor of what is now called the new India… where achievement, and reward, and fate all go hand in hand.” He also became the cornerstone of India’s growth as a cricketing power – on and off the field.
Lest we forget, Australia played only three series against India between 1981 and 1996 (and only one of them in India), while England visited India once between 1985 and 2000. The turn of the century saw an extraordinary rise in these match-ups, not only because India were now the cash cow, but because the Indian team with its newfound confidence – led by Tendulkar – had earned the respect of the cricketing world, except Pakistan perhaps. His debut series, the seventh between Pakistan and India in 11 years, was followed by a nine-year hiatus. At the peak of his career, India played only one Test series against Pakistan, and that series crystallised how Pakistanis saw him.
I refer, of course, to the three-Test series in 1999 (Pakistanis regard the first Test of the Asian Test Championship in February 1999 as the third of the series against India since it came immediately after the Kolkata and Chennai Tests earlier in the year – taking that result into account means Pakistan won the series 2-1 rather than drawing it 1-1). This series featured one of Tendulkar’s greatest Test innings. A fourth-innings masterpiece on a fifth-day pitch while batting with the lower order against Wasim, Waqar and Saqlain – that was how the world saw it. But across the border it was Tendulkar being the gallant batsman he always was and failing to win the match as he always did. The fact that this was his only 30-plus score in six innings of the series merely confirmed the bias: when India won Tendulkar didn’t play a part; India lost despite what he could offer.
***
Until the late 1990s, PTV (Pakistan Television), ruled the roost – except for those who could afford a satellite dish, or an array of similar but cheaper options which were almost always exclusive to Karachi. But the turn of the millennium saw the rise of cable television, providing a whole host of Indian channels. Within five years we went from watching whatever was available on one channel to complaining about not having anything to watch on 80. Among them were a pair of Indian sports networks which brought us the other perspective on Tendulkar and the Indian team. It didn’t take long for the Pakistani attitude towards India to become the same as the Irish attitude towards the English. The average Irishman can support any English football club he likes, but their national team is to be reviled – a dislike fuelled by the irritation with the one-eyed, jingoistic and hypocritical English media.
Cable television in Pakistan only took off after the turn of the millennia. Most of the nation never watched Tendulkar at his peak, when he took apart Shane Warne during the 1997-98 Border-Gavaskar Trophy and Operation Desert Storm soon after. © AFP
Cable television in Pakistan only took off after the turn of the millennium. Most of the nation never watched Tendulkar at his peak, when he took apart Shane Warne during the 1997-98 Border-Gavaskar Trophy and Operation Desert Storm soon after. © AFP
Much the same happened in Pakistan. Most of us never watched Tendulkar at his peak since those matches were never broadcast to the overwhelming majority of the country. We did not get to watch Tendulkar take apart Warne during the 1997-98 Border-Gavaskar Trophy, and Operation Desert Storm soon after was a performance most Pakistanis only read about. In Indian Cricket 2000, Raja Mukherjee described Tendulkar as someone who was “No Indian in his method.” He goes on to say, “His batsmanship was of the West Indian mould. Never before did an Indian treat the ball as he did. His method was aggression, his weapon, power. The niceties of grace and classic conventional technique were not for this valiant kid of the Nineties generation. He was born in independent India… he knew not the uncertainties, nor the enforced servility of the pre-independence era. He was born free, to chart his own course.” This was the Tendulkar that Pakistanis missed. All they saw was a man who struggled against one of the great attacks in limited-overs history, and then the run-machine he became in the second half of his career. But as the cablewalas multiplied, Pakistanis became acquainted with the Indian perception of Tendulkar.
Now, you could watch Indian matches, and you did: India’s failure was a victory in itself, and the greatest possible introduction to Schadenfreude. Every time Pakistan beat India, it tasted sweeter. Between the Sharjah series win in 1998 and the tri-nation series victory in 2008, India played 21 finals, of which they won one. One! Tendulkar averaged 26. Your argument, previously based on just matches against Pakistan, only gained strength as you watched Tendulkar fail in crucial games.
Except, right in the middle of this decade, came Centurion – the day most Indians would think Tendulkar settled the debate. But his performance was easily tossed aside as an aberration, against an ageing team that had been in inexorable decline for three years.
More than Tendulkar, it was Sehwag and his generation who frightened Pakistan. Tendulkar was just the same as he had been for the previous decade – to be respected and admired, but not feared. Which explains why, even after Centurion, the Pakistani view of Tendulkar hardly changed. Instead, the anomalies in his record became more important than the bigger picture. From that innings in 2003 to Mohali in 2011, Tendulkar had seven 50-plus scores against Pakistan – only two of those came in wins. He only scored one 100 in 11 Tests against Pakistan after 1999. Pakistanis have grown up with the idea that if a batsman scores a hundred the team was guaranteed a win. Tendulkar’s four great Pakistani contemporaries – Saeed Anwar, Inzamam, Yousuf and Younis – combined to score 51 ODI 100s, only seven of which resulted in losses. Three of Tendulkar’s five ODI 100s against Pakistan were in a losing cause. Of course, the one-eyed ignored the fact that Pakistan always had a better bowling attack than India did. Flip that stat to see the bigger picture and you realise that the four great Pakistanis combined to score two more ODI hundreds than Tendulkar did on his own. But for the non-believers, even this wouldn’t change their minds.
As Tendulkar retired, Pakistanis biases against him disappeared, at least on the surface. Beyond a couple of exceptions, the reaction to his retirement in Pakistan was overwhelmingly positive, almost sycophantic. © BCCI
As Tendulkar retired, Pakistanis biases against him disappeared, at least on the surface. Beyond a couple of exceptions, the reaction to his retirement in Pakistan was overwhelmingly positive, almost sycophantic. © BCCI
But as Tendulkar retired, those biases disappeared, at least on the surface. Beyond a couple of exceptions, the reaction to his retirement in Pakistan was overwhelmingly positive, almost sycophantic. It made sense too. Pakistan is no longer the country it was in the ’90s. No longer is it a paranoid local miscreant, some of whose citizens feel victimised: it is now a paranoid worldwide miscreant, all of whose citizens feel victimised. Since 9/11, and the beginning of the Afghan war, the anger is reserved for the United States rather than India. For the 2013 national elections, the two most popular centre-right parties in Pakistan called for peace and love towards India – a fact that went unnoticed outside war-mongering circles because of how small a deal it was.
It is no surprise that, despite the attacks in Mumbai, the past 12 years have been a relatively peaceful era in the countries’ histories. The media and technology boom may have provided platforms for hate-mongers on both sides, but it has also ensured a level of interaction that never existed before. Perhaps peace is impossible, but coexistence seems achievable.
These developments may have resulted in the Tendulkar of 2013 being respected far more than the Tendulkar of 1998 – though he was now a lesser player. In the end, he played for so long that he was still around by the time the Pakistani attitude towards India changed – well, almost. There can be no greater proof of Tendulkar’s longevity and greatness than that.

Sunday 13 April 2014

Gujarat is India’s top state in economic freedom

S A Aiyer in the Times of India

Does Narendra Modi actually have a great Gujarat model, or just wellpackaged hype? Critics say that Gujarat has grown fast, but some others have grown faster. 

The Raghuram Rajan Committee on development indicators says Gujarat’s social indicators are just middling. Looking at children of class 3-5 who can do subtraction, Gujarat has declined from 22nd among 28 states in 2006 to 23rd in 2012. However, economist Arvind Panagariya argues that Gujarat has made substantial social progress under Modi, starting from a low base. 

Forget this debate. Neither growth nor social indicators are accurate measures of Modi’s main election plank — good governance. Measuring governance is difficult, and hence neglected by statisticians. Yet it’s all-important. One annual report has long provided indicators of governance. This is Economic Freedom of the States of India (EFSI), written by Bibek Debroy, Laveesh Bhandari and me. The 2013 EFSI report shows Gujarat has been No. 1 in economic freedom for the last three years, widening its lead over others. On a scale from 0 to 1, its overall freedom score has improved from 0.46 to 0.65. Tamil Nadu comes a distant second with 0.54. Economic freedom is not identical to good governance. But lack of economic freedom typically means poor governance — a jungle of rules and obfuscating bureaucrats that promote corruption, delay and harassment. This hits everybody from farmers and consumers to industrialists and transporters. 

What exactly is economic freedom? EFSI uses a methodology adapted from Economic Freedom of the World, an annual publication of the Fraser Institute. Data for Indian states is not available on many issues. So, EFSI limits itself to 20 indicators of the size and efficiency of state governments, their legal structure and property rights, and regulation of labour and business. 

Many of these indicators directly measure governance — the proportion of stolen property recovered; proportion of judicial vacancies; proportion of violent crimes; proportion of investigations completed by police and of cases completed by the courts; and the pendency rate of corruption cases. The list is by no means comprehensive, but provides strong clues

Gujarat is the best state in pendency of corruption cases, and in the proportion of non-violent crime. It is close to the top in completion of police investigations. It scores poorly in judicial vacancies and recovery of stolen property. 

Its quality of government spending is high: it has the lowest ratio of administrative GDP to total GDP. Spending is focused on infrastructure rather than staff. Modi’s repeated state election victories show that his approach produces high voter satisfaction. Gujarat is not a classical free-market state. It has large, expanding public sector companies, and substantial taxes on capital and commodities. It has many subsidies, though fewer than in other states. Still, business thrives in its business-friendly climate. One businessman told me that in Tamil Nadu, it took six months and several visits (and payments) to ministries for industrial approval. But in Gujarat, the ministry concerned called him the day before his appointment, asking for details of his proposal. Next day, he found the bureaucracy had in advance prepared plans of possible locations for his project, and settled the matter on the spot. This was unthinkable elsewhere, and showed both efficiency and honesty. Corruption has not disappeared in Gujarat, but is muted. 

Modi’s Jyotigram scheme provides 24/7 electricity for rural households, plus reliable power at fixed times for tubewells. This explains why Gujarat has India’s fastest agricultural growth (10%/year for a decade, say economists Gulati and Shah). Indian agriculture is crippled by regulations, but Gulati shows that Gujarat has the highest agricultural freedom among states. Modi charges farmers for power, and so all his three state power companies are profitable. By contrast, power companies in other states with free rural power have accumulated losses of almost Rs 200,000 crore. 

Critics accuse him of giving cheap land to favoured industrialists. But state and national governments the world over use such sops to attract industries. Unlike most politicians, Modi has clearly not enriched himself. 

Good governance includes communal peace. So, the 2002 Muslim killings reflect terribly on Modi. For some, it puts him beyond the pale. But since 2002 the state has been peaceful. In 2011-12 , Gujarat had the lowest Muslim rural poverty rate among all states. Its overall poverty rate for Muslims (11.4%) was far lower than for Hindus (17.6%). This was also true of six other states, so Gujarat is not unique in this. 
In sum, EFSI and other studies show that Gujarat has good governance. It has social and communal flaws. But it is India’s top state in economic and agricultural freedom. That’s not hype.

Adultery is good for your marriage – if you don’t get caught, says infidelity website boss


As global membership to the world’s biggest infidelity site soars to over 24 million, its founder explains the international appeal of adultery

Noel Biderman is the Canadian founder of Ashley Madison, a controversial but globally popular adultery website that connects married men and women and discretely enables them to have affairs
Noel Biderman is the Canadian founder of Ashley Madison, a controversial but globally popular adultery website that connects married men and women and discretely enables them to have affairs Photo: Rex
He receives regular death threats, websites are devoted to his demise, the Vatican has sent letters of complaint and the Queen of Spain has sued him.
The man in question is not a criminal, a terrorist or a dictator. Instead, he is the businessman behind the world’s biggest website for extramarital affairs.
Noel Biderman is the Canadian founder of Ashley Madison, a controversial but globally popular adultery website that connects married men and women and discretely enables them to have affairs.
Famed for its catchy motto – “Life is short. Have an affair” – the dating service is free for women but paying for men. Its array of features include virtual “winks”, instant messaging and “travelling” services for members seeking an affair during business trips.
Its mobile app uses GPS technology to track down the nearest available potential lover.  
The website is currently in the throes of a rapid global expansion: since launching in Canada on Valentine’s Day in 2002, it has attracted more than 24 million members in 37 countries, with South Korea launched last week.
Mr Biderman, 42, is a man clearly used to defending his business. In an interview with The Telegraph last week during a visit to Japan – the fastest growing country in terms of membership – he reeled out a string of polished reasons as to why infidelity is the way of the modern world.
“Infidelity exists in every culture in the world,” said Mr Biderman, who refers to himself as the “Emperor of Infidelity”. “There’s no place you can point to on the planet where there is no unfaithfulness.
“In the lifetime of a relationship, on the male side, close to 70 or 80 per cent of men are going to be unfaithful at some point or another in their marriages. And the female side is incredibly on the rise – it’s well past 40 per cent.”
This appears to be the case in Britain in particular. Since the UK launch four years ago, more than 825,000 members have joined – in particular, married women aged between 38 and 42.
The computer screen displays the 'online personals and casual encounters' website of Asley Madison (Getty)
“Our brand really resonates well with a married woman, 15 plus years into her marriage who doesn’t feel that celibacy should slip into the marriage at this time,” he said.
Japan is another success story, with one million members joining within nine months of its launch last summer.
“It seems to me that culturally, this region does the best at separating sex and marriage,” added Mr Biderman. “You can do sex outside marriage much more liberally here. That’s not to say that they don’t present a traditional face, as most societies do. But I think that if we had to measure the infidelity economy in Japan, it’s incredibly sizeable.”
The reasons for soaring infidelity around the world are multiple, according to Mr Biderman.
The site is particularly popular in recession-hit nations such as Spain, while affluent communities with large disposable incomes are also major players in the “infidelity economy”.
But Mr Biderman ultimately believes that the human race is simply not biologically programmed to remain faithful – and that this can be good for a marriage.
“People have affairs because we’re not engineered for monogamy,” he said. “Monogamy didn’t come about from some great scientific research. If anything, the current social science tells us the opposite.
“That the longer the couple is together, invariably, after six months, their sexual encounters decrease, two years, they decrease even further. Twenty years into a relationship, we’re no longer sexually attracted.”
Needless to say, the company is rarely far from controversy. Mr Biderman has incurred the wrath of the Pope, with the Vatican sending a disapproving letter to Ashley Madison in opposition to its sponsorship of Rome’s basketball club Virtue Roma.
More recently, Singapore’s government banned the site, following a public outcry against its “flagrant disregard” for public morality. Mr Biderman plans to challenge the ban in court.
In response to claims of amorality, he believes that precise act of having an affair – without getting caught – can actually help save a marriage, the only other option normally being divorce.
“There was tons of infidelity before I got here,” he said. “The only encouragement I give is to say to people, there is a way to have the perfect affair.
“So the perfect affair is not only meeting someone like-minded, it’s also not being discovered. That’s what I’ve built: a platform where everybody here has put up their hand and said I’m interested in an affair, and the technology to keep it discrete.”
Perhaps most surprising are Mr Biderman’s revelations about his own private life: monogamously married for 10 years with two children, he describes his wife as unwaveringly supportive.
However, he candidly admits she does not share his views on infidelity: “If in the next decade, my sex life evaporates, I have no interest in being celibate.
“Because I have these wonderful children, an extended family I cherish, great economic success and homes – I have not worked for all of that just for sex. I wouldn’t get a divorce, therefore, if that happened, I’d try to have an affair."

Capitalism simply isn't working and here are the reasons why


Economist Thomas Piketty's message is bleak: the gap between rich and poor threatens to destroy us
thomas-piketty-economist-will-hutton
Thomas Piketty has mined 200 years of data to support his theory that capitalism does not work. Photograph: Ed Alcock for the Observer
Suddenly, there is a new economist making waves – and he is not on the right. At the conference of the Institute of New Economic Thinking in Toronto last week, Thomas Piketty's book Capital in the Twenty-First Century got at least one mention at every session I attended. You have to go back to the 1970s and Milton Friedman for a single economist to have had such an impact.
Like Friedman, Piketty is a man for the times. For 1970s anxieties about inflation substitute today's concerns about the emergence of the plutocratic rich and their impact on economy and society. Piketty is in no doubt, as he indicates in an interview in today's Observer New Review, that the current level of rising wealth inequality, set to grow still further, now imperils the very future of capitalism. He has proved it.
It is a startling thesis and one extraordinarily unwelcome to those who think capitalism and inequality need each other. Capitalism requires inequality of wealth, runs this right-of-centre argument, to stimulate risk-taking and effort; governments trying to stem it with taxes on wealth, capital, inheritance and property kill the goose that lays the golden egg. Thus Messrs Cameron and Osborne faithfully champion lower inheritance taxes, refuse to reshape the council tax and boast about the business-friendly low capital gains and corporation tax regime.
Piketty deploys 200 years of data to prove them wrong. Capital, he argues, is blind. Once its returns – investing in anything from buy-to-let property to a new car factory – exceed the real growth of wages and output, as historically they always have done (excepting a few periods such as 1910 to 1950), then inevitably the stock of capital will rise disproportionately faster within the overall pattern of output. Wealth inequality rises exponentially.
The process is made worse by inheritance and, in the US and UK, by the rise of extravagantly paid "super managers". High executive pay has nothing to do with real merit, writes Piketty – it is much lower, for example, in mainland Europe and Japan. Rather, it has become an Anglo-Saxon social norm permitted by the ideology of "meritocratic extremism", in essence, self-serving greed to keep up with the other rich. This is an important element in Piketty's thinking: rising inequality of wealth is not immutable. Societies can indulge it or they can challenge it.
Inequality of wealth in Europe and US is broadly twice the inequality of income – the top 10% have between 60% and 70% of all wealth but merely 25% to 35% of all income. But this concentration of wealth is already at pre-First World War levels, and heading back to those of the late 19th century, when the luck of who might expect to inherit what was the dominant element in economic and social life. There is an iterative interaction between wealth and income: ultimately, great wealth adds unearned rentier income to earned income, further ratcheting up the inequality process.
The extravagances and incredible social tensions of Edwardian England, belle epoque France and robber baron America seemed for ever left behind, but Piketty shows how the period between 1910 and 1950, when that inequality was reduced, was aberrant. It took war and depression to arrest the inequality dynamic, along with the need to introduce high taxes on high incomes, especially unearned incomes, to sustain social peace. Now the ineluctable process of blind capital multiplying faster in fewer hands is under way again and on a global scale. The consequences, writes Piketty, are "potentially terrifying".
For a start, almost no new entrepreneurs, except one or two spectacular Silicon Valley start-ups, can ever make sufficient new money to challenge the incredibly powerful concentrations of existing wealth. In this sense, the "past devours the future". It is telling that the Duke of Westminster and the Earl of Cadogan are two of the richest men in Britain. This is entirely by virtue of the fields in Mayfair and Chelsea their families owned centuries ago and the unwillingness to clamp down on the loopholes that allow the family estates to grow.
Anyone with the capacity to own in an era when the returns exceed those of wages and output will quickly become disproportionately and progressively richer. The incentive is to be a rentier rather than a risk-taker: witness the explosion of buy-to-let. Our companies and our rich don't need to back frontier innovation or even invest to produce: they just need to harvest their returns and tax breaks, tax shelters and compound interest will do the rest.
Capitalist dynamism is undermined, but other forces join to wreck the system. Piketty notes that the rich are effective at protecting their wealth from taxation and that progressively the proportion of the total tax burden shouldered by those on middle incomes has risen. In Britain, it may be true that the top 1% pays a third of all income tax, but income tax constitutes only 25% of all tax revenue: 45% comes from VAT, excise duties and national insurance paid by the mass of the population.
As a result, the burden of paying for public goods such as education, health and housingis increasingly shouldered by average taxpayers, who don't have the wherewithal to sustain them. Wealth inequality thus becomes a recipe for slowing, innovation-averse, rentier economies, tougher working conditions and degraded public services. Meanwhile, the rich get ever richer and more detached from the societies of which they are part: not by merit or hard work, but simply because they are lucky enough to be in command of capital receiving higher returns than wages over time. Our collective sense of justice is outraged.
The lesson of the past is that societies try to protect themselves: they close their borders or have revolutions – or end up going to war. Piketty fears a repeat. His critics argue that with higher living standards resentment of the ultra-rich may no longer be as great – and his data is under intense scrutiny for mistakes. So far it has all held up.
Nor does it seem likely that human beings' inherent sense of justice has been suspended. Of course the reaction plays out differently in different eras: I suspect some of the energy behind Scottish nationalism is the desire to build a country where toxic wealth inequalities are less indulged than in England.
The solutions – a top income tax rate of up to 80%, effective inheritance tax, proper property taxes and, because the issue is global, a global wealth tax – are currently inconceivable.
But as Piketty says, the task of economists is to make them more conceivable. Capital certainly does that.

Friday 11 April 2014

The Gujarat muddle - Why does Gujarat have indifferent social indicators, in spite of having enjoyed runaway economic growth and relatively high standards of governance?

JEAN DRÈZE
  
AN INCOMPLETE TALE: In the 1980s, Gujarat already had the Public Distribution System, the mid-day meal scheme in primary schools and the best system of drought relief works in the country. The 'Gujarat model' story fails to recognise that these achievements have little to do with Narendra Modi. Photo: AP
APAN INCOMPLETE TALE: In the 1980s, Gujarat already had the Public Distribution System, the mid-day meal scheme in primary schools and the best system of drought relief works in the country. The 'Gujarat model' story fails to recognise that these achievements have little to do with Narendra Modi. Photo: AP

Gujarat’s development achievements are moderate, largely predate Narendra Modi, and have as much to do with public action as with economic growth.
As the nation heads for the polling booths in the numbing hot winds of April, objective facts and rational enquiry are taking a holiday and the public relations industry is taking over.
Narendra Modi’s personality, for one, has been repackaged for mass approval. From an authoritarian character, steeped in the reactionary creed of the Rashtriya Swayamsevak Sangh (RSS) and probably complicit in the Gujarat massacre of 2002, he has become an almost avuncular figure — a good shepherd who is expected to lead the country out of the morass of corruption, inflation and unemployment. How he is supposed to accomplish this is left to our imagination — substance is not part of the promos. The Bharatiya Janata Party (BJP), too, is being reinvented as the party of clean governance, overlooking the fact that there is little to distinguish it from the Congress as far as corruption is concerned.
Spruced up image

Similarly, Gujarat’s image has been spruced up for the occasion. Many voters are likely to go the polling booths under the impression that Gujarat resembles Japan, and that letting Mr. Modi take charge is a chance for the whole of India to follow suit.
Some of Mr. Modi’s admirers in the economics profession have readily supplied an explanation for Gujarat’s dazzling development performance: private enterprise and economic growth. This interpretation is popular in the business media. Indeed, it fits very well with the corporate sector’s own view that the primary role of the state is to promote business interests.
However, as more sober scholars (Raghuram Rajan, Ashok Kotwal, Maitreesh Ghatak, among other eminent economists) have shown, Gujarat’s development achievements are actually far from dazzling. Yes, the State has grown fast in the last twenty years. And anyone who travels around Gujarat is bound to notice the good roads, mushrooming factories, and regular power supply. But what about people’s living conditions? Whether we look at poverty, nutrition, education, health or related indicators, the dominant pattern is one of indifferent outcomes. Gujarat is doing a little better than the all-India average in many respects, but there is nothing there that justifies it being called a “model.” Anyone who doubts this can download the latest National Family Health Survey report, or the Raghuram Rajan Committee report, and verify the facts.
To this, the votaries of the Gujarat model respond that the right thing to look at is not the level of Gujarat’s social indicators, but how they have improved over time. Gujarat’s progress, they claim, has been faster than that of other States, especially under Mr. Modi. Alas, this claim too has been debunked. Indeed, Gujarat was doing quite well in comparison with other States in the 1980s. Since then, its relative position has remained much the same, and even deteriorated in some respects.
An illustration may help. The infant mortality rate in Gujarat is not very different from the all-India average: 38 and 42 deaths per 1,000 live births, respectively. Nor is it the case that Gujarat is progressing faster than India in this respect; the gap (in favour of Gujarat) was a little larger twenty years ago — in both absolute and proportionate terms. For other indicators, the picture looks a little more or a little less favourable to Gujarat depending on the focus. Overall, no clear pattern of outstanding progress emerges from available data.
In short, Gujarat’s development record is not bad in comparative terms, but it is nothing like that of say Tamil Nadu or Himachal Pradesh, let alone Kerala. But there is another issue. Are Gujarat’s achievements really based on private enterprise and economic growth? This is only one part of the story.
When I visited Gujarat in the 1980s, I was quite impressed with many of the State’s social services and public facilities, certainly in comparison with the large north Indian states. For instance, Gujarat already had mid-day meals in primary schools at that time — decades later than Tamil Nadu, but decades earlier than the rest of India. It had a functional Public Distribution System — again not as effective as in Tamil Nadu, but much better than in north India. Gujarat also had the best system of drought relief works in the country, and, with Maharashtra, pioneered many of the provisions that were later included in the National Rural Employment Guarantee Act. Gujarat’s achievements today build as much on its ability to put in place functional public services as on private enterprise and growth.
Misleading model

To sum up, the “Gujarat model” story, recently embellished for the elections, is misleading in at least three ways. First, it exaggerates Gujarat’s development achievements. Second, it fails to recognise that many of these achievements have little to do with Narendra Modi. Third, it casually attributes these achievements to private enterprise and economic growth. All this is without going into murkier aspects of Gujarat’s experience, such as environmental destruction or state repression.
At the end of the day, Gujarat poses an interesting puzzle: why does it have indifferent social indicators, in spite of having enjoyed runaway economic growth for so long, as well as relatively high standards of governance? Perhaps this has something to do with economic and social inequality (including highly unequal gender relations), or with the outdated nature of some of India’s social statistics, or with a slackening of Gujarat’s earlier commitment to effective public services. Resolving this puzzle would be a far more useful application of mind than cheap propaganda for NaMo.

Thursday 10 April 2014

What the Tamiflu saga tells us about drug trials and big pharma


We now know the government's Tamiflu stockpile wouldn't have done us much good in the event of a flu epidemic. But the secrecy surrounding clinical trials means there's a lot we don't know about other medicines we take
Tamiflu capsules
Tamiflu capsules. Photograph: Per Lindgren/REX
Today we found out that Tamiflu doesn't work so well after all. Roche, the drug company behind it, withheld vital information on its clinical trials for half a decade, but the Cochrane Collaboration, a global not-for-profit organisation of 14,000 academics, finally obtained all the information. Putting the evidence together, it has found that Tamiflu has little or no impact on complications of flu infection, such as pneumonia.
That is a scandal because the UK government spent £0.5bn stockpiling this drug in the hope that it would help prevent serious side-effects from flu infection. But the bigger scandal is that Roche broke no law by withholding vital information on how well its drug works. In fact, the methods and results of clinical trials on the drugs we use today are still routinely and legally being withheld from doctors, researchers and patients. It is simple bad luck for Roche that Tamiflu became, arbitrarily, the poster child for the missing-data story.
And it is a great poster child. The battle over Tamiflu perfectly illustrates the need for full transparency around clinical trials, the importance of access to obscure documentation, and the failure of the regulatory system. Crucially, it is also an illustration of how science, at its best, is built on transparency and openness to criticism, because the saga of the Cochrane Tamiflu review began with a simple online comment.
In 2009, there was widespread concern about a new flu pandemic, and billions were being spent stockpiling Tamiflu around the world. Because of this, the UK and Australian governments specifically asked the Cochrane Collaboration to update its earlier reviews on the drug. Cochrane reviews are the gold-standard in medicine: they summarise all the data on a given treatment, and they are in a constant review cycle, because evidence changes over time as new trials are published. This should have been a pretty everyday piece of work: the previous review, in 2008, had found some evidence that Tamiflu does, indeed, reduce the rate of complications such as pneumonia. But then a Japanese paediatrician called Keiji Hayashi left a comment that would trigger a revolution in our understanding of how evidence-based medicine should work. This wasn't in a publication, or even a letter: it was a simple online comment, posted informally underneath the Tamiflu review on the Cochrane website, almost like a blog comment.
Tamiflu being made by Roche The UK government spent £0.5bn stockpiling Tamiflu. Photograph: Hanodut/EPA
Cochrane had summarised the data from all the trials, explained Hayashi, but its positive conclusion was driven by data from just one of the papers it cited: an industry-funded summary of 10 previous trials, led by an author called Kaiser. From these 10 trials, only two had ever been published in the scientific literature. For the remaining eight, the only available information on the methods used came from the brief summary in this secondary source, created by industry. That's not reliable enough.
This is science at its best. The Cochrane review is readily accessible online; it explains transparently the methods by which it looked for trials, and then analysed them, so any informed reader can pull the review apart, and understand where the conclusions came from. Cochrane provides an easy way for readers to raise criticisms. And, crucially, these criticisms did not fall on deaf ears. Dr Tom Jefferson is the head of the Cochrane respiratory group, and the lead author on the 2008 review. He realised immediately that he had made a mistake in blindly trusting the Kaiser data. He said so, without defensiveness, and then set about getting the information needed.
First, the Cochrane researchers wrote to the authors of the Kaiser paper. By reply, they were told that this team no longer had the files: they should contact Roche. Here theproblems began. Roche said it would hand over some information, but the Cochrane reviewers would need to sign a confidentiality agreement. This was tricky: Cochrane reviews are built around showing their working, but Roche's proposed contract would require them to keep the information behind their reasoning secret from readers. More than this, the contract said they were not allowed to discuss the terms of their secrecy agreement, or publicly acknowledge that it even existed. Roche was demanding a secret contract, with secret terms, requiring secrecy about the methods and results of trials, in a discussion about the safety and efficacy of a drug that has been taken by hundreds of thousands of people around the world, and on which governments had spent billions. Roche's demand, worryingly, is not unusual. At this point, many in medicine would either acquiesce, or give up. Jefferson asked Roche for clarification about why the contract was necessary. He never received a reply.
Then, in October 2009, the company changed tack. It would like to hand over the data, it explained, but another academic review on Tamiflu was being conducted elsewhere. Roche had given this other group the study reports, so Cochrane couldn't have them. This was a non-sequitur: there is no reason why many groups should not all work on the same question. In fact, since replication is the cornerstone of good science, this would be actively desirable.
Then, one week later, unannounced, Roche sent seven documents, each around a dozen pages long. These contained excerpts of internal company documents on each of the clinical trials in the Kaiser meta-analysis. It was a start, but nothing like the information Cochrane needed to assess the benefits, or the rate of adverse events, or fully to understand the design of the trials.
Packets of Tamiflu Packets of Tamiflu in a drawer at a German pharmacy. Photograph: Wolfgang Rattay/Reuters
At the same time, it was rapidly becoming clear that there were odd inconsistencies in the information on this drug. Crucially, different organisations around the world had drawn vastly different conclusions about its effectiveness. The US Food and Drug Administration (FDA) said it gave no benefits on complications such as pneumonia, while the US Centers for Disease Control and Prevention said it did. The Japanese regulator made no claim for complications, but the European Medicines Agency (EMA) said there was a benefit. There are only two explanations for this, and both can only be resolved by full transparency. Either these organisations saw different data, in which case we need to build a collective list, add up all the trials, and work out the effects of the drug overall. Or this is a close call, and there is reasonable disagreement on how to interpret the trials, in which case we need full access to their methods and results, for an informed public debate in the medical academic community.
This is particularly important, since there can often be shortcomings in the design of a clinical trial, which mean it is no longer a fair test of which treatment is best. We now know this was the case in many of the Tamiflu trials, where, for example, participants were sometimes very unrepresentative of real-world patients. Similarly, in trials described as "double blinded" – where neither doctor nor patient should be able to tell whether they're getting a placebo or the real drug – the active and placebo pills were different colours. Even more oddly, in almost all Tamiflu trials, it seems a diagnosis of pneumonia was measured by patients' self-reporting: many researchers would have expected a clear diagnostic algorithm, perhaps a chest x-ray, at least.
Since the Cochrane team were still being denied the information needed to spot these flaws, they decided to exclude all this data from their analysis, leaving the review in limbo. It was published in December 2009, with a note explaining their reasoning, and a small flurry of activity followed. Roche posted their brief excerpts online, and committed to make full study reports available. For four years, they then failed to do so.
During this period, the global medical academic community began to realise that the brief, published academic papers on trials – which we have relied on for many years – can be incomplete, and even misleading. Much more detail is available in a clinical study report (CSR), the intermediate document that stands between the raw data and a journal article: the precise plan for analysing the data statistically, detailed descriptions of adverse events, and so on.
By 2009, Roche had shared just small portions of the CSRs, but even this was enough to see there were problems. For example, looking at the two papers out of 10 in the Kaiser review that were published, one said: "There were no drug-related serious adverse events", and the other doesn't mention adverse events. But in the CSR documents shared on these same two studies, 10 serious adverse events were listed, of which three are classified as being possibly related to Tamiflu.
Roche HQ in Basel, Switzerland Roche HQ in Basel, Switzerland. Photograph: Bloomberg/Bloomberg via Getty Images
By setting out all the known trials side by side, the researchers were able to identify peculiar discrepancies: for example, the largest "phase three" trial – one of the large trials that are done to get a drug on to the market – was never published, and is rarely mentioned in regulatory documents.
The chase continued, and it exemplifies the attitude of industry towards transparency. In June 2010, Roche told Cochrane it was sorry, but it had thought they already had what they wanted. In July, it announced that it was worried about patient confidentiality. By now, Roche had been refusing to publish the study reports for a year. Suddenly, it began to raise odd personal concerns. It claimed that some Cochrane researchers had made untrue statements about the drug, and about the company, but refused to say who, or what, or where. "Certain members of Cochrane Group," it said, "are unlikely to approach the review with the independence that is both necessary and justified." This is hard to credit, but even if true, it should be irrelevant: bad science is often published, and is shot down in public, in academic journals, by people with good arguments. This is how science works. No company or researcher should be allowed to choose who has access to trial data. Still Roche refused to hand over the study reports.
Then Roche complained that the Cochrane reviewers had begun to copy in journalists, including me, on their emails when responding to Roche staff. At the same time, the company was raising the broken arguments that are eerily familiar to anyone who has followed the campaign for greater trials transparency. Key among these was one that cuts to the core of the culture war between evidence-based medicine, and the older "eminence-based medicine" that we are supposed to have left behind. It is simply not the job of academics to make these decisions about benefit and risk, said Roche, it is the job of regulators.
This argument fails on two fronts. First, as with many other drugs, it now seems that not even the regulators had seen all the information on all the trials. But more than that, regulators miss things. Many of the most notable problems with medicines over the past few years – with the arthritis drug Vioxx; with the diabetes drug rosiglitazone, marketed as Avandia; and with the evidence base for Tamiflu – weren't spotted primarily by regulators, but rather by independent doctors and academics. Regulators don't miss things because they are corrupt, or incompetent. They miss things because detecting signals of risk and benefit in reviews of clinical trials is a difficult business and so, like all difficult questions in science, it benefits from having many eyes on the problem.
While the battle for access to Tamiflu trials has gone on, the world of medicine has begun to shift, albeit at a painful pace, with the European Ombudsman and several British select committees joining the push for transparency. The AllTrials campaign, which I co-founded last year, now has the support of almost all medical and academic professional bodies in the UK, and many more worldwide, as well as more than 100 patient groups, and the drug company GSK. We have seen new codes of conduct, and European legislation, proposing improvements in access: all riddled with loopholes, but improvements nonetheless. Crucially, withholding data has become a headline issue, and much less defensible.
Last year, in the context of this wider shift, under ceaseless questions from Cochrane and the British Medical Journal, after half a decade, Roche finally gave Cochrane the information it needed.
So does Tamiflu work? From the Cochrane analysis – fully public – Tamiflu does not reduce the number of hospitalisations. There wasn't enough data to see if it reduces the number of deaths. It does reduce the number of self-reported, unverified cases of pneumonia, but when you look at the five trials with a detailed diagnostic form for pneumonia, there is no significant benefit. It might help prevent flu symptoms, but not asymptomatic spread, and the evidence here is mixed. It will take a few hours off the duration of your flu symptoms. But all this comes at a significant cost of side-effects. Since percentages are hard to visualise, we can make those numbers more tangible by taking the figures from the Cochrane review, and applying them. For example, if a million people take Tamiflu in a pandemic, 45,000 will experience vomiting, 31,000 will experience headache and 11,000 will have psychiatric side-effects. Remember, though, that those figures all assume we are only giving Tamiflu to a million people: if things kick off, we have stockpiled enough for 80% of the population. That's quite a lot of vomit.
Roche has issued a press release saying it contests these conclusions, but giving no reasons: so now we can finally let science begin. It can shoot down the details of the Cochrane review – I hope it will – and we will edge towards the truth. This is what science looks like. Roche also denies being dragged to transparency, and says it simply didn't know how to respond to Cochrane. This, again, speaks to the pace of change. I have no idea why it was withholding information: but I rather suspect it was simply because that's what people have always done, and sharing it was a hassle, requiring new norms to be developed. That's reassuring and depressing at the same time.
Should we have spent half a billion on this drug? That's a tricky question. If you picture yourself in a bunker, watching a catastrophic pandemic unfold, confronting the end of human civilisation, you could probably persuade yourself that Tamiflu might be worth buying anyway, even knowing the risks and benefits. But that final clause is the key. We often choose to use treatments in medicine, knowing that they have limited benefit, and significant side-effects: but we make an informed decision, balancing the risks and benefits for ourselves.
And in any case, that £500m is the tip of the iceberg. Tamiflu is a side show, the one place where a single team of dogged academics said "enough" and the company caved in. But the results of clinical trials are still being routinely and legally withheld on the medicines we use today and nothing about a final answer on Tamiflu will help plug this gaping hole.
Star anise Star anise provides the principal component of Tamiflu. Photograph: Adrian Bradshaw/EPA
More importantly, for all that there is progress, so far we have only sentiment, and half measures. None of the changes to European legislation or codes of conduct get us access to the information we need, because they all refer only to new trials, so they share a loophole that excludes – remarkably – all the trials on all the medicines we use today, and will continue to use for decades. To take one concrete and topical example: they wouldn't have made a blind bit of difference on Tamiflu. We have seen voluntary pledges for greater transparency from many individual companies – Johnson & Johnson, Roche,GSK, now Roche, and more – which are welcome, but similar promises have been given before, and then reversed a few years later.
This is a pivotal moment in the history of medicine. Trials transparency is finally on the agenda, and this may be our only opportunity to fix it in a decade. We cannot make informed decisions about which treatment is best while information about clinical trials is routinely and legally withheld from doctors, researchers, and patients. Anyone who stands in the way of transparency is exposing patients to avoidable harm. We need regulators, legislators, and professional bodies to demand full transparency. We need clear audit on what information is missing, and who is withholding it.
Finally, more than anything – because culture shift will be as powerful as legislation – we need to do something even more difficult. We need to praise, encourage, and support the companies and individuals who are beginning to do the right thing. This now includes Roche. And so, paradoxically, after everything you have read above, with the outrage fresh in your mind, on the day when it feels harder than any other, I hope you will join me in saying: Bravo, Roche. Now let's do better.