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Sunday 23 November 2014

The Mudgal report on IPL corruption names five players, as top guns resist capitulation for now

Mihir Srivastava in Outlook India

An IPL Game Of Spot, Bet And Fix
How it all started
  • The IPL betting and match-fixing scam became public when the Pune and Kochi teams were disqualified
  • The Kochi team had already seen a controversy involving Shashi Tharoor and the now-deceased Sunanda Pushkar
  • The Tharoor row led to the exit of IPL founder-commissioner Lalit Modi and his row with BCCI chief N. Srinivasan
What we know now
  • The conduct of at least 12 players, including two Australians, invited the scrutiny of Justice Mukul Mudgal
  • Indians include five members of the 2011 World Cup-winning squad, two of whom are from the same IPL team
  • The owners of at least three IPL teams are believed to be involved in the match-fixing racket
  • Nearly 70 per cent of players are believed to be involved in betting on matches indirectly, if not directly
  • Given the high purchase costs, team owners and associates have an added incentive to pre-decide match results
***
Indian cricket finds itself on a barely playable wicket. Justice Mukul Mudgal might indirectly have a say on India’s World Cup 2015 squad if the apex court makes public names of top Indian cricketers mentioned in his report on the alleged betting and spot/match-fixing in season 6 of the Indian Premier League (IPL). Top sources say that the 38-page report (with 5,000 pages of annexures) names around a dozen names of former and current players, Indian and international, with their roles in the multi-billion dollar scandal. Players, administrators, politicians, film stars and corporate czars are all protagonists in this sordid drama. It seems like the first draft of a crime thriller.

Although codewords like ‘Individual 2’ and ‘Individual 3’ have been bandied about, the fact is the report names five Indian players who were part of the World Cup-winning team of 2011. Talented and temperamental, they run cricket academies, invest in the hospitality industry and event management, even advertising firms. Their partners in these ventures are the same set of people who form the link between them and the bookies; some are bookies themselves. Moreover, they are Page 3 regulars.

Take the case of a left-handed all-rou­nder. He broke down when questioned by Justice Mudgal. There wasn’t any dispute about his involvement, he was just begging that he be not named and pleaded for a life of dignity, says an insider, a cop involved in the investigation. Mercy, not justice, was also sought by a close friend of this cricketer, his teammate in the World Cup squad. A bowler known to pick fights on and off the cricket field, who spends more time in Mumbai, outside his home state.

The ‘Individual 3’ mentioned in Justice Mudgal’s report is a Chennai Super Kings player. A prolific run-getter and a god-fearing man, he visits the Sai Baba temple in Shirdi regularly with two bookies by his side, and has the protection and patronage of top cricket administrators. The fourth is a celebrity fast bow­ler with a career punctuated by injuries, who was often too unwell to play for the country, but was always fit for the IPL. He, too, has the backing of powerful team-owners. The most significant name is of a top idol, whose incredibly short saga of rags to riches is as exemplary as his passion for speed.

-----India 2011 World Cup team members:

Dhoni, Sehwag, Gambhir, Tendulkar, Yuvraj, Raina, Kohli, Zaheer, Sreesanth, Harbhajan, Y Pathan, Munaf, Nehra, Chawla and Ashwin

----

The flaw, as pointed out over the years by wise men, is in the IPL itself. It had so much to offer to players, administrators, umpires, even commentators, that the whole venture had an unviable air about it. It wasn’t  charity either, where the glitterati altruistically invested to lose money. Instead, it turned out to be a money-­spinner. With marquee pla­yers being bought for millions of dollars, glitz on the ground and expe­nsive after-match parties, intelligent guesses always pointed to dirty money.

The first confirmation came when the Delhi police arrested three players—Sreesanth, Ajith Chandila and Ankeet Chavan—in 2013 for their role in spot-fixing and betting. Neeraj Kumar, the then Delhi police commissioner, refutes the charges that the cops let off the big fish. He confirms that many players were named by the bookies, but that he couldn’t have acted on mere accusations, without conclusive evidence. Rajasthan Royals owner Raj Kundra, he says, confessed to betting, but there was no corroborative evidence, and territorial jurisdiction was an issue. “The investigation was carried out objectively, was able to nail down large number of bookies and set off a chain reaction, with police in other metropolises also ending up investigating betting,” he says. One such investigator was G. Sampath Kumar of the Tamil Nadu police. He was suspended from his job last week on the charges of rec­e­i­ving Rs 55 lakh from a bookie, Uttam C. Jain alias Kitty.




Yellow fever A match involving Chennai Super Kings, now under a corruption-shaped cloud. (Photograph by AFP, From Outlook 01 December 2014)

A family member of one of the three players arrested by the Delhi police met Outlook in a coffee shop at Delhi’s Bengali market. The prosecuted three are just the tip of the iceberg, he says, and the submerged iceberg covers nearly the whole system. The IPL is but a gambling festival, he says, giving examples of how his relative was pulled into betting and match-fixing. “No player can escape the bookies. It’s not a choice,” he says.

---- Also Read

Sreesanth - Another modern day Valmiki?


----

While the Delhi police couldn’t gather enough incriminating evi­dence against the ‘big fish’, Justice Mudgal is forthright about some of them. N. Sriniv­asan—the man who controls both the BCCI and the IPL—can be accused of blatant conflict of interest, says a senior lawyer and cricket administrator. “He’s both the umpire and the player,” he says.

A left-handed all-rounder broke down before Justice Mudgal. The guilty man begged not to be named.
The Mudgal report clearly says that Srinivasan was aware of betting and match-fixing, and he preferred to be a mute spectator. His son-in-law, Gurunath Meiyappan, virtually ran Chennai Super Kings. In the nebulous role of a ‘principal’, he attended team meetings and was a regular companion of players on the ground. It’s clear he was anything but what India and CSK ski­pper Mahendra Singh Dhoni told the Mudgal committee—a “mere cricket enthusiast”. Though lying to an apex court committee is considered perjury, Dhoni, also a vice-president of  Sriniva­san’s India Cements, has consistently bat­ted for his team’s owner. Dhoni’s wife Sakshi was frequently spotted watching IPL matches with former Boll­ywood actor Vindoo Dara Singh, also an acc­used in the 2013 IPL spot-­fixing scandal. In a sting operation by Zee News, Vindoo outlandishly claimed the match-­fixing fiasco was actually the fallout of a fight between  ncp (and former BCCI) chief Sharad Pawar and Srinivasan.


Apart from Meiyappan, the Mud­gal report says IPL chief operating officer Sundar Raman had admitted doing nothing even after knowing that Raj Kundra was involved in bet­ting. Furthermore, a third team (CSK and RR being the other two)—from the renowned stable of good times—is named in the clutch of outfits where the owners/their fam­ily members bet on their own team’s performance.



An eagle eye Justice Mukul Mudgal

Aditya Varma, secretary of the Bihar Cricket Association, treats the battle against corruption in cricket as a personal crusade, and has kept on the warpath in the face of both dire threats and propitiatory wads of cash. He presents a scenario: “If an owner bets, and lets his players, captain and the rest, know that he wants the team to get out on a specific score, say 120 runs, then it’s not betting, it’s match-fixing.”

Varma says there are two categories of culprits—administrators and players. Not bookies, he says, as that’s their job. There are two ways, he says, in which betting/match-fixing takes place: when the match is fixed with the help of owners or administrators, and when players themselves take the initiative for spot-fixing. Bookies are known to live in the same hotel as the players, and interact freely with them during parties. “I will seek an investigation in the conduct of all teams and owners. The story is much murkier than it looks,” says Varma.

As parts of the report have been made public, the government has responded with silence. The top politicians of the country have been, or are, cricket administrators—Arun Jaitley, Amit Shah, Sharad Pawar, Rajiv Shukla and Shashi Tharoor, to name a few. The politics of cricket has little to do with their party affiliations. The Narendra Modi government—seeking a global effort to retrieve billions of dollars of black money stashed in foreign banks—has chosen to ignore the cancer that is eating away Indian cricket. Union finance minister and former Delhi Cricket Association chief Arun Jaitley is mum too. Rajiv Shukla, former IPL chairman and a minister in the UPA cabinet, is anxious about the issue and is actively following the events, says a close friend. Some revered former players have also kept their counsel, perhaps because they are beneficiaries of the system. And Sachin Tendulkar’s autobiography, Playing It My Way, is silent about these murky depths in cricket, though some of his close friends are under the scanner.

In April this year, the SC had rejected the BCCI’s proposal to constitute a three-member committee to investig­ate the spot-fixing and betting charges, com­prising ex-CBI director R.K. Rag­­havan, cricketer Ravi Sha­stri and former Cal­cutta High Court chief justice Jai Narain Patel. Raghavan is an affiliated member of the Tamil Nadu Cricket Ass­ociation, headed by Srinivasan, Sha­stri is a salaried BCCI employee and Patel’s bro­­­ther-in-law is Shivlal Yadav, the then interim board president for non-IPL affairs.

The audacious guile that led to the pro­­posal of the panel resurfaced in the belligerence with which the BCCI has made light of the Mudgal committee’s report even before it’s considered by the Supreme Court—belittling it as ‘invalid’, asking the Supreme Court to form another panel and reinstate Srinivasan as BCCI chief (though forced to step down on November 3, he has been effectively in charge through proxy), while the probe is being conducted.

“The ball is now with the apex court, and chances of tampering is less,” says a former cricketer and BCCI office-bearer. With the ball swinging under favourable conditions, wickets might go down in a heap, taking with them reputations and hard-earned records.

Hell Hath No Fury Like a Great Power Scorned

John Pilger

The siege of Knightsbridge is a farce. For two years, an exaggerated, costly police presence around the Ecuadorean embassy in London has served no purpose other than to flaunt the power of the state. Their quarry is an Australian charged with no crime, a refugee from gross injustice whose only security is the room given him by a brave South American country. His true crime is to have initiated a wave of truth-telling in an era of lies, cynicism and war.

The persecution of Julian Assange must end. Even the British government clearly believes it must end. On 28 October, the deputy foreign minister, Hugo Swire, told Parliament he would “actively welcome” the Swedish prosecutor in London and “we would do absolutely everything to facilitate that”. The tone was impatient.

The Swedish prosecutor, Marianne Ny, has refused to come to London to question Assange about allegations of sexual misconduct in Stockholm in 2010—even though Swedish law allows for it and the procedure is routine for Sweden and the UK. The documentary evidence of a threat to Assange’s life and freedom from the United States—should he leave the embassy—is overwhelming. On May 14 this year, US court files revealed that a “multi subject investigation” against Assange was “active and ongoing”.

Ny has never properly explained why she will not come to London, just as the Swedish authorities have never explained why they refuse to give Assange a guarantee that they will not extradite him on to the US under a secret arrangement agreed between Stockholm and Washington. In December 2010, the Independent revealed that the two governments had discussed his onward extradition to the US before the European Arrest Warrant was issued.

Perhaps an explanation is that, contrary to its reputation as a liberal bastion, Sweden has drawn so close to Washington that it has allowed secret CIA “renditions”—including the illegal deportation of refugees. The rendition and subsequent torture of two Egyptian political refugees in 2001 was condemned by the UN Committee against Torture, Amnesty International and Human Rights Watch; the complicity and duplicity of the Swedish state are documented in successful civil litigation and WikiLeaks cables. In the summer of 2010, Assange had been in Sweden to talk about WikiLeaks revelations of the war in Afghanistan—in which Sweden had forces under US command.

The Americans are pursuing Assange because WikiLeaks exposed their epic crimes in Afghanistan and Iraq: the wholesale killing of tens of thousands of civilians, which they covered up; and their contempt for sovereignty and international law, as demonstrated vividly in their leaked diplomatic cables.

For his part in disclosing how US soldiers murdered Afghan and Iraqi civilians, the heroic soldier Bradley (now Chelsea) Manning received a sentence of 35 years, having been held for more than a thousand days in conditions which, according to the UN Special Rapporteur, amounted to torture.

Few doubt that should the US get their hands on Assange, a similar fate awaits him. Threats of capture and assassination became the currency of the political extremes in the US following Vice-President Joe Biden’s preposterous slur that Assange was a “cyber-terrorist”. Anyone doubting the kind of US ruthlessness he can expect should remember the forcing down of the Bolivian president’s plane last year—wrongly believed to be carrying Edward Snowden.

According to documents released by Snowden, Assange is on a “Manhunt target list”. Washington’s bid to get him, say Australian diplomatic cables, is “unprecedented in scale and nature”. In Alexandria, Virginia, a secret grand jury has spent four years attempting to contrive a crime for which Assange can be prosecuted. This is not easy. The First Amendment to the US Constitution protects publishers, journalists and whistleblowers. As a presidential candidate in 2008, Barack Obama lauded whistleblowers as “part of a healthy democracy [and they] must be protected from reprisal”. Under President Obama, more whistleblowers have been prosecuted than under all other US presidents combined. Even before the verdict was announced in the trial of Chelsea Manning, Obama had pronounced the whistleblower guilty.

“Documents released by WikiLeaks since Assange moved to England,” wrote Al Burke, editor of the online Nordic News Network, an authority on the multiple twists and dangers facing Assange, “clearly indicate that Sweden has consistently submitted to pressure from the United States in matters relating to civil rights. There is every reason for concern that if Assange were to be taken into custody by Swedish authorities, he could be turned over to the United States without due consideration of his legal rights.”

There are signs that the Swedish public and legal community do not support prosecutor’s Marianne Ny’s intransigence. Once implacably hostile to Assange, the Swedish press has published headlines such as: “Go to London, for God’s sake.”

Why won’t she? More to the point, why won’t she allow the Swedish court access to hundreds of SMS messages that the police extracted from the phone of one of the two women involved in the misconduct allegations? Why won’t she hand them over to Assange’s Swedish lawyers? She says she is not legally required to do so until a formal charge is laid and she has questioned him. Then, why doesn’t she question him?

This week, the Swedish Court of Appeal will decide whether to order Ny to hand over the SMS messages; or the matter will go to the Supreme Court and the European Court of Justice. In high farce, Assange’s Swedish lawyers have been allowed only to “review” the SMS messages, which they had to memorise.

One of the women’s messages makes clear that she did not want any charges brought against Assange, “but the police were keen on getting a hold on him”. She was “shocked” when they arrested him because she only “wanted him to take [an HIV] test”. She “did not want to accuse JA of anything” and “it was the police who made up the charges”. (In a witness statement, she is quoted as saying that she had been “railroaded by police and others around her”.)
Neither woman claimed she had been raped. Indeed, both have denied they were raped and one of them has since tweeted, “I have not been raped.” That they were manipulated by police and their wishes ignored is evident—whatever their lawyers might say now. Certainly, they are victims of a saga worthy of Kafka.

For Assange, his only trial has been trial by media. On 20 August 2010, the Swedish police opened a “rape investigation” and immediately—and unlawfully—told the Stockholm tabloids that there was a warrant for Assange’s arrest for the “rape of two women”. This was the news that went round the world.

In Washington, a smiling US Defence Secretary Robert Gates told reporters that the arrest “sounds like good news to me”. Twitter accounts associated with the Pentagon described Assange as a “rapist” and a “fugitive”.

Less than 24 hours later, the Stockholm Chief Prosecutor, Eva Finne, took over the investigation. She wasted no time in cancelling the arrest warrant, saying, “I don’t believe there is any reason to suspect that he has committed rape.” Four days later, she dismissed the rape investigation altogether, saying, “There is no suspicion of any crime whatsoever.” The file was closed.

Enter Claes Borgstrom, a high profile politician in the Social Democratic Party then standing as a candidate in Sweden’s imminent general election. Within days of the chief prosecutor’s dismissal of the case, Borgstrom, a lawyer, announced to the media that he was representing the two women and had sought a different prosecutor in the city of Gothenberg. This was Marianne Ny, whom Borgstrom knew well. She, too, was involved with the Social Democrats.

On 30 August, Assange attended a police station in Stockholm voluntarily and answered all the questions put to him. He understood that was the end of the matter. Two days later, Ny announced she was re-opening the case. Borgstrom was asked by a Swedish reporter why the case was proceeding when it had already been dismissed, citing one of the women as saying she had not been raped. He replied, “Ah, but she is not a lawyer.” Assange’s Australian barrister, James Catlin, responded, “This is a laughing stock … it’s as if they make it up as they go along.”

On the day Marianne Ny re-activated the case, the head of Sweden’s military intelligence service (“MUST”) publicly denounced WikiLeaks in an article entitled “WikiLeaks [is] a threat to our soldiers.” Assange was warned that the Swedish intelligence service, SAP, had been told by its US counterparts that US-Sweden intelligence-sharing arrangements would be “cut off” if Sweden sheltered him.

For five weeks, Assange waited in Sweden for the new investigation to take its course. The Guardian was then on the brink of publishing the Iraq “War Logs”, based on WikiLeaks’ disclosures, which Assange was to oversee. His lawyer in Stockholm asked Ny if she had any objection to his leaving the country. She said he was free to leave.

Inexplicably, as soon as he left Sweden—at the height of media and public interest in the WikiLeaks disclosures—Ny issued a European Arrest Warrant and an Interpol “red alert” normally used for terrorists and dangerous criminals. Put out in five languages around the world, it ensured a media frenzy.

Assange attended a police station in London, was arrested and spent ten days in Wandsworth Prison, in solitary confinement. Released on £340,000 bail, he was electronically tagged, required to report to police daily and placed under virtual house arrest while his case began its long journey to the Supreme Court. He still had not been charged with any offence. His lawyers repeated his offer to be questioned by Ny in London, pointing out that she had given him permission to leave Sweden. They suggested a special facility at Scotland Yard used for that purpose. She refused.

Katrin Axelsson and Lisa Longstaff of Women Against Rape wrote: “The allegations against [Assange] are a smokescreen behind which a number of governments are trying to clamp down on WikiLeaks for having audaciously revealed to the public their secret planning of wars and occupations with their attendant rape, murder and destruction… The authorities care so little about violence against women that they manipulate rape allegations at will. [Assange] has made it clear he is available for questioning by the Swedish authorities, in Britain or via Skype. Why are they refusing this essential step in their investigation? What are they afraid of?”

This question remained unanswered as Ny deployed the European Arrest Warrant, a draconian product of the “war on terror” supposedly designed to catch terrorists and organized criminals. The EAW had abolished the obligation on a petitioning state to provide any evidence of a crime. More than a thousand EAWs are issued each month; only a few have anything to do with potential “terror” charges. Most are issued for trivial offences—such as overdue bank charges and fines. Many of those extradited face months in prison without charge. There have been a number of shocking miscarriages of justice, of which British judges have been highly critical.

The Assange case finally reached the UK Supreme Court in May 2012. In a judgement that upheld the EAW—whose rigid demands had left the courts almost no room for manoeuvre—the judges found that European prosecutors could issue extradition warrants in the UK without any judicial oversight, even though Parliament intended otherwise. They made clear that Parliament had been “misled” by the Blair government. The court was split, 5-2, and consequently found against Assange.

However, the Chief Justice, Lord Phillips, made one mistake. He applied the Vienna Convention on treaty interpretation, allowing for state practice to override the letter of the law. As Assange’s barrister, Dinah Rose QC, pointed out, this did not apply to the EAW.

The Supreme Court only recognised this crucial error when it dealt with another appeal against the EAW in November last year. The Assange decision had been wrong, but it was too late to go back.

Assange’s choice was stark: extradition to a country that had refused to say whether or not it would send him on to the US, or to seek what seemed his last opportunity for refuge and safety. Supported by most of Latin America, the courageous government of Ecuador granted him refugee status on the basis of documented evidence and legal advice that he faced the prospect of cruel and unusual punishment in the US; that this threat violated his basic human rights; and that his own government in Australia had abandoned him and colluded with Washington. The Labor government of prime minister Julia Gillard had even threatened to take away his passport.

Gareth Peirce, the renowned human rights lawyer who represents Assange in London, wrote to the then Australian foreign minister, Kevin Rudd: “Given the extent of the public discussion, frequently on the basis of entirely false assumptions… it is very hard to attempt to preserve for him any presumption of innocence. Mr. Assange has now hanging over him not one but two Damocles swords, of potential extradition to two different jurisdictions in turn for two different alleged crimes, neither of which are crimes in his own country, and that his personal safety has become at risk in circumstances that are highly politically charged.”

It was not until she contacted the Australian High Commission in London that Peirce received a response, which answered none of the pressing points she raised. In a meeting I attended with her, the Australian Consul-General, Ken Pascoe, made the astonishing claim that he knew “only what I read in the newspapers” about the details of the case.

Meanwhile, the prospect of a grotesque miscarriage of justice was drowned in a vituperative campaign against the WikiLeaks founder. Deeply personal, petty, vicious and inhuman attacks were aimed at a man not charged with any crime yet subjected to treatment not even meted out to a defendant facing extradition on a charge of murdering his wife. That the US threat to Assange was a threat to all journalists, to freedom of speech, was lost in the sordid and the ambitious

Books were published, movie deals struck and media careers launched or kick-started on the back of WikiLeaks and an assumption that attacking Assange was fair game and he was too poor to sue. People have made money, often big money, while WikiLeaks has struggled to survive. The editor of the Guardian, Alan Rusbridger, called the WikiLeaks disclosures, which his newspaper published, “one of the greatest journalistic scoops of the last 30 years”. It became part of his marketing plan to raise the newspaper’s cover price.

With not a penny going to Assange or to WikiLeaks, a hyped Guardian book led to a lucrative Hollywood movie. The book’s authors, Luke Harding and David Leigh, gratuitously described Assange as a “damaged personality” and “callous”. They also revealed the secret password he had given the paper in confidence, which was designed to protect a digital file containing the US embassy cables. With Assange now trapped in the Ecuadorean embassy, Harding, standing among the police outside, gloated on his blog that “Scotland Yard may get the last laugh”.

The injustice meted out to Assange is one of the reasons Parliament will eventually vote on a reformed EAW. The draconian catch-all used against him could not happen now; charges would have to be brought and “questioning” would be insufficient grounds for extradition. “His case has been won lock, stock and barrel,” Gareth Peirce told me, “these changes in the law mean that the UK now recognises as correct everything that was argued in his case. Yet he does not benefit. And the genuineness of Ecuador’s offer of sanctuary is not questioned by the UK or Sweden.”

On 18 March 2008, a war on WikiLeaks and Julian Assange was foretold in a secret Pentagon document prepared by the “Cyber Counterintelligence Assessments Branch”. It described a detailed plan to destroy the feeling of “trust” which is WikiLeaks’ “centre of gravity”. This would be achieved with threats of “exposure [and] criminal prosecution”. Silencing and criminalising this rare source of independent journalism was the aim, smear the method. Hell hath no fury like great power scorned.

Friday 21 November 2014

Big supermarkets may be dying but they leave a plague on the landscape


Shuttered out-of-town retail stores will languish and become the coalition’s most visible legacy to the British environment
Eva Bee Tesco illustration
Illustration by Eva Bee

I have to admit, the Jenkins household now shops online. On Saturday morning the doorbell rings, and there stands a young man with the weekly supplies in neat recyclable bags. He has replaced the weekly trudge to the supermarket. Something may be lost, but a deal of time and shoe leather is saved.
I am one of millions: it is expected that 90% of the rise in British retail spending by 2016will be online. The age of the big supermarket, like that of the battleship, may limp on, but the glory days are over. One in five supermarkets needs to close, Goldman Sachs said this week, especially the gigantic ones.
Just last year Tesco’s former boss, Sir Terry Leahy, could go on Desert Island Discs andjeer at high streets as “medieval” and hail his superstores as “progress”. How times change. The City pages now call his company “a 1990s relic” and its stock “one notch above junk”. Its patsy accountants, PwC contrived to ignore a quarter-billion-pound hole in its accounts - imagine the outcry if a social worker were guilty of such professional oversight. The company now admits that “over-spacing” is its biggest handicap.
Two years ago Tesco’s rival, Sainsbury’s, dropped plans for 15 inner-city stores in favour of out-of-town ones, steered in that direction by the local government secretary, Eric Pickles. Now it is spending millions trying to write off an excess of 40 stores nationwide.Asda admits a “shockwave”, with its first fall in sales in eight years. They all blame “buyer promiscuity” – code for a free market we don’t like.
Drive anywhere in Britain today and you will see a grim phenomenon. Dotting the roadside, punctuating the high street, scattered through every suburb, are the carcasses of abandoned petrol stations. Once they were the future. To planners they could do no wrong. They broke all planning rules every couple of miles, lest the great god traffic ran out of fuel. Signs and canopies with garish logos defaced every village. Racks of groceries wiped out local stores. Now the ugly sites litter town and country alike. No one has the guts to demand their owners reinstate the land they despoiled.
For petrol station now read hypermarket. Since the disastrous reign of Margaret Thatcher’s environment secretary, Lord Ridley, they have bestrode every vista, especially if their name was Tesco. No planner dared stop them. They ring every settlement like siege engines round a medieval city, starving their commerce and undermining their communities. As recently as 2011, the big four supermarkets were planning to expand their trading floors by a staggering 50%. The rightwing thinktank Policy Exchange thought this was just terrific – the free market at full throttle.
Big supermarkets are dying. But if petrol stations left warts behind, supermarkets are leaving bubonic plague. Across the Atlantic, America’s 700 mega-shopping malls are in crisis: some, such as those of Akron, in Ohio, stand derelict, grass growing through their concrete, trees sprouting through defunct escalators. Some supermarkets may become warehouses for online distribution centres. Most will languish as cheap stores and homelessness shelters, like the high streets they ruined. Some will be replaced by bleak, ill-sited housing estates, part of the scarred, blotched landscape that is the coalition’s most visible legacy to the British environment.
Planning was certainly too rigid, but non-planning is far worse. The leads and lags of a free market in land impose huge “external costs” on the community. It was clearly wrong to allow an oversupply of out-of-town sites for competitive retailing, with no thought given to the impact on city centres or on local communities in general. The anti-green waste of energy, building material and infrastructure was never considered. The gods of the market triumphed.
There is no mystery here. If you want to kill a town centre, offer out-of-town sites to Tesco and Sainsbury’s – and build roads to help them. Thatcher, Blair and Cameron did just this. Shoppers had “market choice” for a year or two, then saw their towns “hollow out” and collapse. I watched it happen from rich Chichester in the south to poor Penrith in the north. The surest way of stalling the hopes of Ludlow of becoming a gourmet food centre was to allow the Earl of Plymouth to build an out-of-town “food centre” on the A49. Now watch Ludlow decay. This is not a free market, it is a stupid market.
Land is Britain’s most precious resource. The point of planning is to economise its usefulness. At present, smart planning ought to be thinking ahead of the boom in online shopping. What mistakes might there be in pandering to its gargantuan appetites? What are the implications of every street jammed with home delivery lorries? What of every suburb blighted with distribution centres, supplied by giant hangars littering every motorway?
Markets go in cycles. The job of planning is to even them out, not to exaggerate boom and bust. The out-of-town supermarket era has been brief, barely a quarter century old, but it has done as much damage to the countryside as it has to Britain’s urban cohesion. Its inflexible floor plates and characterless exteriors make even the ghosts of the industrial revolution look picturesque. They will blight the landscape for decades.
I am sure many big supermarkets will survive. The convenience ones in town are booming. The Institute of Grocery Distribution predicts they will grow by a third in the next five years. The law of futurology applies to them as to all once-doomed relics of the past, such as books, newspapers, the church, live theatre and jazz. Booms burn out, but every fashion finds its level and something of it survives.
I believe town and village centres will find a new role in the post-digital economy of “live experience”. Convenience itself has a value. High streets supply such personal services as coffee bars, beauty salons, tattoo parlours and gyms. After them will come market stalls, foodie counters, pop-up shops and junk vendors, the live activities of the new “smart city”.
The high street has no right to eternity but it can supply the framework in which a “small society” flourishes, far below the metropolitan scanner of the coalition’s big society. The high street should embody the ideal of a regulated free market. They tried to kill it, but what a mess we have made of bringing it back.

GDP is a mirror on the markets. It must not rule our lives

By fixating on a snapshot of statistics, we focus on short-termism and lose sight of what the Victorians prized most: value

male office worker looking through binoculars
'What is the point of economic growth if it does not make most people better off?' Photograph: Colorblind/Getty Images

Next month the Office for National Statistics will issue data for the first time on the UK’s wellbeing. In the exercise, the ONS is recognising that GDP, which now includes estimates for the market value of illegal drugs and prostitution, is at best only a partial measure of our economic health. Not that one would draw this conclusion from the political tub-thumping that improved GDP figures bring.
GDP is a measure of economic activity in the market and in the moment. So its key shortcoming is that it collapses time and makes us short-term in focus. It counts investment and consumption in the same way – an extra £100 spent on education is equivalent to the same amount spent on fizzy drinks.

-----Also read

Economic Growth: the destructive god that can never be appeased




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Studies have repeatedly shown that the time horizon of the financial markets in particular is ever more short-term. Shaving about 0.006 seconds off the time it takes computer orders to travel from Chicago to the New Jersey data centre which houses the Nasdaq servers made it worth investing several hundred million dollars in tunnelling through a mountain range to lay the fibre optic cable in a straighter line. More than two-thirds of trades in US equity markets are high-frequency automated orders. How has the search for profit so foreshortened our vision?
It wasn’t always so. The term “Victorian values” now speaks to us of characteristics such as narrow-mindedness, hypocrisy and conformity, but it could also speak of hard work, self-improvement and above all self-sacrifice for the future. The list of the Victorians’ investments in our future is staggering. It includes railways, canals, sewers and roads; town halls and libraries, schools and concert halls, monuments and museums, modern hospitals and the profession of nursing; learned societies, the police, trades unions, mutual insurers and building societies – organisations that have often survived more than a century.
Why the Victorians managed to be so visionary is not entirely clear, but it had something to do with the confidence of an age of discovery both in science and other areas of knowledge, and also in geographical exploration and empire building. They made such strides against ignorance and the unknown, firm in their sense of divine approbation, it seems a belief in progress came naturally to them.
Civic and business leaders in the late 19th century had extraordinary confidence and far-sightedness, even as they too stood at the centre of social and economic upheaval. This Victorian sense of stewardship is something we could usefully remind ourselves of when thinking about how we measure value today. In the late 19th century it was the innovators and the builders of institutions who had standing, and it was the men and women of vision who were understood to be the creators of value.
They still are, even if it is often hard to measure or quantify what they build. Anything of value has its roots in values and vision, as much today as at any time in the past.
Financial markets have their place as a powerful way of harnessing incentives to achieve desirable outcomes. For example, the market in the US for trading permissions to emit sulphur dioxide, which helps cause acid rain, has been a triumphant success in removing what was once a serious environmental harm.
However, there is no sign that the wider public has stopped challenging the ascendancy of markets and money. The bestseller status of Thomas Piketty’s Capital in the 21st Century bears witness to that. It has put the question of the great inequality of wealth in the market economies at the centre of public debate, and it underlines another question: what is the point of economic growth if it does not make most people better off? Or, worse, if growth is actually destroying things that many of us value.
A further problem with GDP is that it obviously includes many things that are value-destroying. Natural disasters are good for GDP growth because of the reconstruction boom afterwards; the destruction of assets and human life is not counted. The metric ignores the depletion of resources, the loss of biodiversity, the impact of congestion, and the loss of social connection in the modern market economy.
People have long proposed alternative measures of progress – recently, environment-adjusted measures, or simply measuring happiness, directly by survey. What could be more straightforward than asking such a direct question? But reported happiness changes very little over time because, whether it’s the joy of a lottery win or the catastrophe of being disabled in an accident, it only takes about two years for people experiencing even a dramatic change in their life to revert to previous levels of happiness.
This takes us back to monetary measures, back to GDP and its inclusion of things that clearly have negative value. It also excludes “informal” activities such as housework and caring, many volunteer activities, and always excludes the full value of innovations. Nathan Mayer Rothschild was the richest man in the world at the time of his death from an infected tooth abscess in 1836. An antibiotic that hadn’t then been invented but now costs just $10 would have saved him. How much would he have paid for that medicine?

Wednesday 19 November 2014

Economic Growth: the destructive god that can never be appeased

The blind pursuit of economic exapansion stokes a cycle of financial crisis, and is wrecking our world. Time for an alternative

A man walks past a television monitor showing a drop in Hong Kong's benchmark Hang Seng Index
'Perhaps it’s inaccurate to describe this as another crash. Perhaps it’s a continuation of the last one, the latest phase in a permanent cycle of crisis.' Photograph: Tyrone Siu/Reuters
Another crash is coming. We all know it, now even David Cameron acknowledges it. The only questions are what the immediate catalyst will be, and when it begins.
You can take your pick. The Financial Times reported yesterday that China now resembles the US in 2007. Domestic bank loans have risen 40% since 2008, while “the ability to repay that debt has deteriorated dramatically”. Property prices are falling and the companies that run China’s shadow banking system provide “virtually no disclosure” of their liabilities. Just two days ago the G20 leaders announced that growth in China “is robust and is becoming more sustainable”. You can judge the value of their assurances for yourself.
Housing bubbles in several countries, including Britain, could pop any time. A report in September revealed that total world debt (public and private) is 212% of GDP. In 2008, when it helped cause the last crash, it stood at 174%. The Telegraph notes that this threatens to cause “renewed financial crisis … and eventual mass default”. Shadow banking has gone beserk, stocks appear to be wildly overvalued, the eurozone is bust again. Which will blow first?
Or perhaps it’s inaccurate to describe this as another crash. Perhaps it’s a continuation of the last one, the latest phase in a permanent cycle of crisis exacerbated by the measures (credit bubbles, deregulation, the curtailment of state spending) that were supposed to deliver uninterrupted growth. The system the world’s governments have sought to stabilise is inherently unstable; built on debt, fuelled by speculation, run by sharks.
If it goes down soon, as Cameron fears, in a world of empty coffers and hobbled public services it will precipitate an ideological crisis graver than the blow to Keynesianism in the 1970s. The problem that then arises – and which explains the longevity of the discredited ideology that caused the last crash – is that there is no alternative policy, accepted by mainstream political parties, with which to replace it. They will keep making the same mistakes, while expecting a different outcome.
To try to stabilise this system, governments behave like soldiers billeted in an ancient manor, burning the furniture, the paintings and the stairs to keep themselves warm for a night. They are breaking up the postwar settlement, our public health services and social safety nets, above all the living world, to produce ephemeral spurts of growth. Magnificent habitats, the benign and fragile climate in which we have prospered, species that have lived on earth for millions of years – all are being stacked on to the fire, their protection characterised as an impediment to growth.
Cameron boasted on Monday that he will revive the economy by “scrapping red tape”. This “red tape” consists in many cases of the safeguards defending both people and places from predatory corporations. The small business, enterprise and employment bill is now passing through the House of Commons – spinelessly supported, as ever, by Labour. The bill seeks to pull down our protective rules to “reduce costs for business”, even if that means increasing costs for everyone else, while threatening our health and happiness. But why? As the government boasted last week, the UK already has “the least restrictive product market regulation and the most supportive regulatory and institutional environment for business across the G20.” And it still doesn’t work. So let’s burn what remains.
This bonfire of regulation is accompanied by a reckless abandonment of democratic principles. In the Commons on Monday, Cameron spoke for the first time about the Transatlantic Trade and Investment Partnership (TTIP). If this treaty between the EU and the US goes ahead, it will grant corporations a separate legal system to which no one else has access, through which they can sue governments passing laws that might affect their profits. Cameron insisted that “it does not in any way have to affect our national health service”. (Note those words “have to”.) Pressed to explain this, he cited the former EU trade commissioner, who claimed that “public services are always exempted”.
But I have read the EU’s negotiating mandate, and it contains no such exemption, just plenty of waffle and ambiguity on this issue. When the Scottish government asked Cameron’s officials for an “unequivocal assurance” that the NHS would not be exposed to such litigation, they refused to provide it. This treaty could rip our public services to shreds for the sake of a short and (studies suggestinsignificant fizzle of economic growth.
Is it not time to think again? To stop sacrificing our working lives, our prospects, our surroundings to an insatiable God? To consider a different economic model, which does not demand endless pain while generating repeated crises?
Amazingly, this consideration begins on Thursday. For the first time in 170 years, parliament will debate one aspect of the problem: the creation of money. Few people know that 97% of our money supply is created not by the government (or the central bank), but by commercial banks in the form of loans. At no point was a democratic decision made to allow them to do this. So why do we let it happen? This, as Martin Wolf has explained in the Financial Times, “is the source of much of the instability of our economies”. The debate won’t stop the practice, but it represents the raising of a long-neglected question.
This, though, is just the beginning. Is it not also time for a government commission on post-growth economics? Drawing on the work of thinkers such as Herman Daly, Tim Jackson, Peter Victor, Kate Raworth, Rob Dietz and Dan O’Neill, it would look at the possibility of moving towards a steady state economy: one that seeks distribution rather than blind expansion; that does not demand infinite growth on a finite planet.
It would ask the question that never gets asked: why? Why are we wrecking the natural world and public services to generate growth, when that growth is not delivering contentment, security or even, for most of us, greater prosperity? Why have we enthroned growth, regardless of its utility, above all other outcomes? Why, despite failures so great and so frequent, have we not changed the model? When the next crash comes, these questions will be inescapable.

On batting - The perils of premeditation

Due to the demand for sixes in T20, more and more batsmen are resorting to predetermined slogging, which leads to their downfall in the other formats
Martin Crowe in Cricinfo
November 19, 2014

If you clear your mind before a shot, you actually find you have more time to play it © Getty Images

For someone who believes in meditation, it's only right to question premeditation. In my humble opinion, to clear the mind is far more beneficial than filling it. When it comes to batting, also from experience, nothing is more accurate.
To clear the mind is to allow an instinctive charge to ignite. To clear the mind allows potential to rush forth. On the other hand, to fill the mind is to force the issue, to demand a specific action, resulting normally in hitting too early after moving too little. The mind has jumped the gun, resulting in an early swing of the bat with decelerated power.

----Also by Martin Crowe

The space between two balls is where cricket is really played

On Playing Spin - Watch, move, and play late

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Far better to see it early, allow for the information of the ball to manifest, a decision found, the movement fluent and full, the hitting late and powerful. When you take that extra split-second, you ensure all is ready and working, the late timing and gap found, confirming there is always time for anything.
Yet the line between success and failure is so fine. As the bowler runs in, there is often a brief moment of wavering between predetermined thinking and a clear, instinctive mind. The mind can switch, and it often does completely out of the blue. One of the best ways to shut out a random interrupting thought is to repeat a slow positive affirmation: "This ball, this ball, watch the ball, watch the ball."
When a random predetermined thought rushes in, there is no stopping the outcome. The message goes straight to the hands, the hitting. Yes, the ball is sighted clearly, but it's the predetermined shot that is prominent in the mind, so the swing is made urgently, prematurely, the body doing very little while the hands and bat rush in to send the ball to where it was commanded prior to being bowled.
At this point the odds are with the bowler, the batsman having given away all his power, mentally and physically.
One of the best ways to shut out a random interrupting thought is to repeat a slow positive affirmation: "This ball, this ball, watch the ball, watch the ball"
The clearing of mental stimulation prior to the ball means trusting the instinctive software waiting to send accurate information to the nervous system and body. It results in a full appreciation of the ball's behaviour through the air and off the pitch, and what the appropriate reaction should be.
This choice is the one that supreme batting champions for over hundred years have used. However, recently, with the addition of T20, the desire to decide first, before the ball is seen, has changed the nature of the batting mindset for good.
Prior to T20, the only time batsmen were lured into such prolific premeditation at the crease was in the first and last ten overs of a limited-overs match. In T20, with only 120 balls an innings to play with, suddenly the decision that a boundary is needed instantly becomes a no-brainer. The need to hit sixes becomes the focus from ball one. To prepare for this, the batsman feels a need for a headstart, literally. He thinks that to clear the fence he needs to muster his strength and methodology early. Hence the early swing of the bat.
It's a huge tease. Yet time and again we see that clear-headed batting is the ultimate way to operate in normal, more timeless cricket. It will always produce a better long-term result.
Sadly, in the frenzy that can descend quickly in T20, short-term gain is sought. When it comes off on odd occasion, it becomes a drug. It's so cool to predict a shot and then pull it off. It's like you have this special gift and you want to show it off often. Yet it all goes against the art of batting as demonstrated by Don Bradman, the greatest ever.
In the good old days, if you tried this with an old-fashioned bat you would get out. Nowadays, with the latest innovations in bat-making advancing as quickly as they are, the premeditated slog has become successful. The six is now easily achieved with a turbo weapon and a tiny ground to clear.
This six-hitting phenomenon is a massive boost to the brand value of a player. He is prime real estate in a T20 market if his slugging profile is lifted. This kind of freelance slugger has become the rage in the IPL.
And so this is the tease for generations to come: do you set the brain to "pre" or to "clear"? It depends on what uniform you are wearing, what format you are playing, even what country you are in. "Clear" for Tests, "pre" for T20, and "good luck" in one-dayers.