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Wednesday 20 June 2018

Subramanian Swamy - BJP manipulating economic data


Democratising the knowledge of Economics - What happens when ordinary people learn economics?

Aditya Chakrabortty in The Guardian

In a makeshift classroom, nine lay people are battling some of the greatest economists of all time – and they appear to be winning. Just watch what happens to David Ricardo, the 18th-century father of our free-trade system. In best BBC voice, one of the group reads out Ricardo’s words: “Economics studies how the produce of the Earth is distributed.”

Not good enough, says another, Brigitte Lechner. Shouldn’t economists study how to meet basic needs? “We all need a roof over our heads, we all need to survive.” Nor does the Earth belong solely to humans. Her judgment is brisk. “Ricardo was talking tosh.”

So much laughter rings out of this room that the folk outside must wonder what’s going on. They’ve been told this is an economics course – and participants on those don’t normally dissolve into giggles.

Inside, Pat Bhatt chimes in: “Everything you see around you comes from nature. That’s the basis of everything. Economics is the wrong word. It should be … ecolo-mics.”

Ooohs and aaahs. “Very clever!” beams the facilitator Nicola Headlam and scribbles it down on the flipboard.

“I invented it,” says Bhatt.

“My work here is done,” replies Headlam. “I’ll get my coat.”

Some days, democracy looks like a bashed-up ballot box. Some days, it looks like a furious demo. But on this sun-splashed weekday morning, democracy looks like this low-ceilinged meeting room in a converted church, slap bang in the middle of the road that runs from Manchester to Stockport.

None of the “students” have ever picked up an economics textbook. At a guess, most would be either stumped or sedated by the Financial Times. Yet here they are, starting a crash course in something that to them is a mystery. The majority are retired, having worked their entire lives. But when asked how many of them feel some control over the economy, not one raises a hand. So who is in charge?

“Journalists – who are paid by rich people.”

Amid all the humour pokes a truth. For this group, economics is something that’s done to them, by people sitting far away in Westminster or the City. They bear the brunt of spending cuts; they struggle with the rottenness of Northern Rail and they see neighbours sinking into debt – and they have no decent account as to why. They have been bashed over the head again and again, and not even been shown the offending shovel.

Over in the corner sits Sue O’Connor, who today comes “sponsored by Visa!” Another gentle joke that masks the debtor’s panic of having her disability benefit hacked back. Cancer meant she lost all her income and wound up in sheltered housing. Now 64, she suffers severe arthritis, yet her Motability caris about to be taken away.

While at a secondary modern, her class was judged too thick to learn any maths. Partly because the teenager wasn’t taught to count, the grey-haired woman still feels she doesn’t count. “Information is power,” she tells the group. “If I can learn in this class, maybe others will listen to me.”

More confident is 70-year-old “raging feminist” Lechner. “The economy is a system, right?” she says. “I understand systems like patriarchy and how it’s set so certain people get hurt … and I want to know how the rules of the economy are set.”

Headlam nods: “Somehow, someone, somewhere made these rules up. They aren’t laws of nature.” And they determine “who’s got what and where and why”.


‘Short of paying nine grand a year for a degree, how else are laypeople meant to find out about the most potent social science of all?’ A flyer for the course. Photograph: Christopher Thomond for the Guardian

That tearing sound you can hear is the veil that normally partitions economics from society and politics.

Up till 2008, someone like O’Connor would have been told over and over that if she’d failed to get ahead it was her fault, not the system’s. She’d just not followed the rules. Then came the financial crisis, which turned into a crisis of economics.

When the Queen famously asked why no economist saw the crash coming, she cut to the heart of the matter: perhaps those who wrote the economy’s laws and policed their observance weren’t so qualified after all. And while some practitioners claim that theirs is a semi-science, all prescriptions to revive the economy – from George Osborne’s historic austerity to the hundreds of billions doled out to asset-owners by the Bank of England – underline how it’s fundamentally political. By the time Michael Gove remarked in the Brexit campaign that “people in this country have had enough of experts”, he was picking a squelchy-soft target.

One of the biggest battles over economics kicked off just up the road from this community centre. At the University of Manchester in 2013, economics undergraduates – tired of memorising abstract models while the eurozone burned – linked up with students from around the world to demand their economics curriculum be changed. Nothing beyond the orthodoxy of free-market economics was being taught; no conflicting global developments, nothing of its critics such as Keynes or Marx, despite their contemporary relevance. Thus began an epic, and epically imbalanced, fight of a bunch of teenagers taking on the very professors marking their exam papers.

Student passions usually fizzle out faster than you can say “snakebite and black”, yet a half decade on, the struggle to prise open economics has got broader. Those ardent undergraduates propping up the union bar are now civil servants pushing for change in government economics; or they’re directing charities such as Economy, which is putting on this crash course in Levenshulme. The aim is to nail the format, then do 15 courses next year, partnering with housing associations, local authorities and others across the UK.

As you might expect from the first session of the first course, this morning’s proceedings betray some nerves. In an ordinary jacket and denim skirt, Headlam tells the class: “We had no idea if you would come.” Unlike the brogue-wearing professoriat, she and her co-facilitator Anne Hines give no sense that they come from a distant planet. Tomorrow morning, former pharmacist Hines sits her own economics exam for an Open University degree course while Headlam, even with her doctorate, describes her academic career as making “target practice for the elite institutions”.


‘Levenshulme is supposed to be gentrifying.’ Photograph: Christopher Thomond for the Guardian

The pair are giving their time for free, and attendees don’t pay a penny. Economy’s Clare Birkett put together the course and organised the pilots on a part-time wage. All five courses, each lasting up to two months and educating anywhere between 50 and 80 people, will together cost little more than the tuition fees for one solitary economics degree.

A few academic economists will ask what authority a bunch of amateurs have, but Birkett has prepared her fighting talk: “If they say, ‘How dare you talk about this?’, I’ll say, ‘Why shouldn’t I? I’ve put in the work, I’ve studied these things. This stuff belongs to all of us.’”

Short of paying nine grand a year for a degree, how else are lay people meant to find out about the most potent social science of all? The internet is full of blind alleys, while even public lectures within universities typically assume some prior knowledge. Given how some economists rage that they’re not listened to enough on issues such as Brexit, it’s notable how little they actually engage with the public (one excellent exception is the annual Bristol Festival of Economics).

Not so long ago, a Levenshulme resident could learn economics – or any number of other subjects – through the adult evening classes offered by the University of Manchester. The extramural programme stretched as far afield as Wigan and Burnley, and by the 1970s employed more than 30 academic staff. Then followed decades of cuts, until the entire department was shut down in 2006.

Which makes economics the humpty-dumpty subject: trust in it is thoroughly broken, yet the public lack the basic tools to put the discipline back together again in a form that reflects their needs. A YouGov survey in 2015 found that more than 60% of respondents did not even know the definition of GDP (gross domestic product) – that staple of BBC bulletins and Westminster debates.

To make the economy more democratic, as everyone from Theresa May to Jeremy Corbyn proposes, we need to democratise knowledge of economics. That’s a truth now cottoned on to by organisations as disparate as the Bank of England and Momentum.


‘Everyone here brings their own lived experience of economics.’ Photograph: Christopher Thomond for the Guardian

Those doing the Levenshulme crash course don’t look like your typical seminar room attendees. Not only are they decades older; all but one is a women. The average undergraduate economics course, according to the Royal Economic Society, is about 67% male and 25% privately educated(compared with 7% of the population). After the class, a charity van pulls up outside, offering three bags of short-dated food for £6. Several “students” collect their groceries for the week.

Everyone here brings their own lived experience of economics. In her motorised wheelchair, Joanne Wilcock notes how “everything is much more expensive when you’re disabled”. Bang on, yet you hardly ever read that in an article on the latest inflation figures. Bhatt knows that Levenshulme is supposed to be gentrifying – “fancy cars, flash weddings” – but notices his neighbours can’t afford to do up their own houses. “All fur coat and no knickers!” he concludes, and the room cracks up.

And if you’re expecting them to trot out the usual left-itudes about fixing the economy, you’re wrong. A discussion about Northern Rail does produce calls for nationalisation – but also arguments as to how it should be turned into a co-op, or run by an arms-length organisation of technocrats.Q&A
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Lechner starts on about “citizen scientists” – amateurs who conduct their own experiments – and casts an eye around the room. “Why can’t we be citizen economists?”

That may be the most radical suggestion of the day, because it cuts directly against how both right and left usually do their business. In 1894, the year before cofounding the London School of Economics, Fabian Beatrice Webb confided to her diary: “We have little faith in the ‘average sensual man’. We do not believe that he can do more than describe his grievances, we do not think he can prescribe his remedies … we wish to introduce into politics the professional expert.”

That impulse may now be dressed up in polite euphemism – but it lives on. “So many thinktanks and MPs come up with good ideas to change our economy, but they’re all stuck in their political bubble,” says the head of Economy, Joe Earle. “Ordinary people barely get a say in the thing that rules their lives.”

Contrast that with this class and its polite horizontalism, where no one is presumed to be a total expert and everyone is treated as if they have something valuable to say. It is the seeds of that ferment described by Hilary Wainwright in her recent book, A New Politics from the Left.


‘Aklima Akhter only came to this country in 2013.’ Photograph: Christopher Thomond for the Guardian

Drawing on her experience of feminist and workers’ self-organisation, she writes: “Rebel movements shared and developed their own kinds of knowledge, via practice and through debate and deliberation, and on to producing new ideas and the basis of new institutions. Authority, once it has been confidently questioned by those on whose obedience it depends, crumbles in ways that make it difficult to put back together again.”

At the end of the class, each participant tells the rest the best thing they have learned. There’s a pause when it gets to Aklima Akhter, who only came to this country in 2013 and has been sitting so benignly quiet in her white headscarf. She starts haltingly: “It is difficult for me, you know … the subject, the language.”

All around her are faces pursed in little moues of encouragement, but then Akhter speeds up with fluency. “But my favourite word was ‘nationalisation’. Because when things are privatised it is the rich who get all the benefit.” And for once in this room, no one is laughing.

Tuesday 19 June 2018

‘Hindus have to come out and say: not in our religion’s name’


Why Malayalam novelist KP Ramanunni undertook a penance for the Kathua gangrape in a Kerala temple. According to him, it was his response as a Hindu and a believer. He said he was following the Gandhian tradition of personal atonement for a public evil.


Amrith Lal in The Indian Express

 

Sahitya Akademi winner and Malayalam novelist KP Ramanunni.

Some weeks ago, this year’s Sahitya Akademi winner and Malayalam novelist KP Ramanunni said he intended to atone for the rape and murder of an eight-year-old girl in a temple in Kathua, Jammu. This, he said, was his response as a Hindu and a believer. He said he was following the Gandhian tradition of personal atonement for a public evil. He said he would do a shayana pradakshinam (circumambulation of the sanctum sanctorum by rolling on the ground) along with others at the Sreekrishna Temple in Kadalayi, Kannur. In an appeal, he stated the reasons for his penance. “The Hindus have a responsibility to show an example of resistance from their own platform of faith against the forces of evil. Because, the fundamental dharma of Hinduism is to pray for the well-being of all the world and stand with truth,” he wrote. He found support from the Kerala Samskrita Sanghom, an organisation of Left-leaning Sanskrit lovers, and a section of intellectuals, including poet and scholar K Satchidanandan.

But when Ramanunni and two others, including a Hindu monk, declared that they would undertake the penance on June 7, many Hindutva bodies opposed the decision. On the designated day, the writer, accompanied by a large posse of police, activists and believers against and in support of the act, undertook the penance by following all the rituals and traditions of the temple.

Ramanunni’s act of atonement has raised a slew of questions. The Hindu right saw it as an anti-BJP political protest. Some felt it was a vacuous spectacle. A few felt secular politics ought not to enter temple spaces or engage with rituals, since that would lead to a validation of Hindu right-wing politics. Even the claim of the circumambulation being a Gandhian act of atonement has been questioned: Can such a singular, individualistic act revive the Gandhian political tradition in a state where the tradition has been marginalised? How different is it from the instrumentalist use of religion by politicians? There are no easy or simple answers to these questions.

For the 63-year-old Kozhikode based writer, this was one way to engage with other Hindus and believers. It was very much in line with the religious syncretism that underlines his fiction, from the much-celebrated Sufi Paranja Katha (A Tale Told By a Sufi, 1995) to his last work, Deivathinte Pustakam (The Book of God, 2017). A recent paper by the Left thinker, B Rajeevan, Sarva Dharma Samabhavana, which called for reclaiming religion from bigots by combining the thoughts of Gandhi, Ambedkar, Sree Narayana Guru and Marx and positing its subaltern self against communalism, inspired him. In this interview, Ramanunni speaks about his attempt to wrest back religious thought from hate. Excerpts:

What made you undertake the act of penance at the Kannur temple?

Every religion, I believe, is getting more and more radicalised and places of worship are increasingly turning into centres of crime. How does one address this issue? I don’t think a purely rationalist approach that excludes religious thought can provide any solution. There are democratic spaces and revolutionary strands within the religious sphere that could help resist communalism. I see Mahatma Gandhi as a practitioner of this sort of a politics. He called himself a sanatani Hindu and revolutionised Hinduism. The fraternal feelings he espoused for Muslims were part of his revolutionary understanding of religion. It was also a carefully thought-out moral and political strategy. The idea was to repair the communal divide the British had created in India. But this strand of political activism ended with him, there was no continuity. It also allowed Hinduism to become reactionary and communal. We need to revive the Hinduism of Ramakrishna Paramahamsa, Swami Vivekananda, Sree Narayana Guru, Gandhiji and so on.

Many Muslim groups openly declare that what organisations like the Islamic State preach and do is not Islam. Hindus, too, have to come out and say what is being done today in the name of Hinduism is not Hinduism. The Kathua rape and murder was a heinous crime carried out and defended in the name of Hinduism. There has always been a strand of self-purification and self-criticism within the Hindu religion; doing penance is a part of that tradition. When a Junaid is killed only because he is a Muslim, all Hindus have to bear the burden of that sin, I believe. The rape and murder in Kathua was not just of a Muslim child but also of Hinduism. It is to build such a conscience that I undertook the shayana pradakshinam at the Kadalayi temple.

But why such a protest at a temple?

We hold a lot of town-hall meetings against communalism. We speak to secular people, and all of us are mostly in agreement. I find this funny. This is almost like putting up resistance on the Pakistan border when there is an attack on the Chinese frontier. The communal forces are spreading hate through believers, using places of worship. These spaces have been abandoned by secular intellectuals, whereas communal organisations are mobilising around them. This wasn’t so in the past. Temple festivals and functions were more social than religious events. Now, the attempt is to turn ordinary Hindus into bigots. This is done by inviting bigoted people, including sanyasis, to give lectures. But these talks are aimed at creating prejudice against other religions. This sort of brainwashing of people, especially ordinary believing women, has been going on for a while. There is a need to engage with believers, and in their spaces. As a believer, a practising Hindu I have to do it, I will do it.

When did you start thinking about this need to engage with believers?

Some months ago, I planned to tour religious places to spread a message of communal harmony. There was some criticism and people backed out. Around this time, Marxist thinker B Rajeevan and poet K Satchidanandan had spoken about mobilising around the idea of sarva dharma samabhavana, which spoke about equal respect to all religions. Rajeevan’s concept inspired me. I have always held that ours is a secularism inclusive of faiths, not one that rejects faiths.

Political parties, including the CPM and the Congress, have been fully supportive of my initiative. They, of course, didn’t want it to be a party programme. That’s when Kerala Samskrita Sanghom came in support. This is an organisation of people who love Sanskrit. Many of its member are also believers, and some of them had worked in organisations like the RSS in the past. We chose the temple in Kannur because it is known as the Guruvayur of Malabar. Swami Athmatheertha had initially expressed interest in joining me, but he opted out. Organisations like the Hindu Aikya Vedi, a Sangh Parivar outfit, viciously opposed us. If we talk about repentance and penance in a temple, they knew it would hurt their interests.

Is this a one-off thing?

We have discussed the need to work among the believers. Or else, Kerala will soon become a different place. We have a history of communal harmony and shared spaces among different faiths. That is now under threat. Even fraternal relations with people of other faith are now looked upon with suspicion. Communal hatred is increasingly becoming a part of everyday life. Muslims, made insecure by the communalisation of Hindus, are withdrawing into the shell of religious spaces. Communalism is mutually reinforcing. A secularism that keeps out religion is not capable of fighting this regressive trend.

Your initiative has been described as a Left-backed anti-BJP political activity or dismissed as a publicity gimmick.

Malayalis have become very cynical. Social media is most vicious, it is full of bigots and cynics. They will try to discourage or make fun of you. Unfortunately, those who support you are not vocal in public. We live in an age where forces of virtue are weak and the powers of vice are efficient.

What about the criticism that political parties have an instrumentalist approach towards religion? That their interventions in matters of faith have only a political motive?

That’s when you reduce your engagement with believers and matters of faith to tactics. A large majority of people who vote CPM in Kerala would be believers. In fact, there are Leftist traditions that engage with religious faith in a positive way. It is important to have a democratic mindset that respects someone’s right to believe in god. According to me, if he exists, god is the greatest discovery of mankind; if he doesn’t, he is mankind’s greatest invention for the support and betterment of humans.



Friday 15 June 2018

“Subhashit Vidya Vivadaya…” - The Deep Roots of RSS's Anti-Intellectualism and its Disregard for Dissent

The history of the organisation makes it clear that its ranks have been taught to develop an aversion to fresh thinking. Mohan Bhagwat's comments confirmed that this is the case last week when Pranab Mukherjee attended an RSS event in Nagpur.





Vidyadhar Date in The Wire




The antipathy of the Rashtriya Swayamsevak Sangh to liberal values is well known. But even then, it is astonishing that RSS chief Mohan Bhagwat should have condemned as wicked those who use vidya or knowledge for dissent.

He did this in the presence of former president Pranab Mukherjee at the RSS headquarters in Nagpur on June 7 by quoting a Sanskrit saying that begins, “Subhashit Vidya Vivadaya…” . This observation seems to have attracted little attention in the media.




RSS chief Mohan Bhagwat speaks as former president Pranab Mukherjee looks on, June 7, 2018. Credit: PTI

What an unhappy contrast Bhagwat’s observation makes to the understanding of vidya by Mahatma Jyotirao Phule and Dr B.R. Ambedkar, two of the foremost and relevant social thinkers of Maharashtra.

Back in the 19th century Phule had said, “Vidyevina Mati Geli…”, essentially that a lack of education leads to lack of wisdom, which leads to lack of morals, which leads to lack of progress, which leads to lack of money, which leads to the oppression of the lower classes (see what havoc lack of education can cause).

And Dr B.R. Ambedkar’s main exhortation to the downtrodden masses was: “Educate, Agitate, Organise“.

So, for these wise men, education and knowledge was the basic need for the common people. For the RSS, an enlightened mass of people are a severe threat to the established order. This is perhaps why it fears dissent and harbours a hostility towards it.

Maharashtra has a formidable tradition of learning and dissent in the modern period since the 19th century and it is not surprising that the RSS should be so uneasy with it. Lokmanya Tilak, though seen by many as a conservative, also had strong working class sympathies, so much so that Shapurji Saklatvala, a Communist MP of Britain, wrote to him in 1920 to launch an international communist labour party in India, (as quoted in an article on Karl Marx and class conflict by Prof J.V. Naik, the well known history researcher).

V.K. Rajwade, a fiercely independent historian in the early 20 century wrote a radical history of marriage in ancient India. The then young Communist S.A. Dange thought it was in line with Engels’s treatise Family, Private Property and the State. Rajwade also wandered all over Maharashtra at his own expense, collecting valuable records that became a great source for other historians.

Such was the passion for knowledge of S.V. Ketkar, a sociologist trained in the US in the first decade of the 20th century, that he single-handedly compiled an Encyclopedia in Marathi, also working as its publisher and salesman. For this he came to known as Dnyankoshkar .

The anti-intellectualism of the RSS and its role as a counter revolutionary force in politics and cultural life needs to be seen in this light.

Much of the thinking and teaching of cadres in its set-up is extremely uninspiring, monotonous, repetitive and boring as one of its former insiders, S.H. Deshpande, an ex-professor in the department of economics in Mumbai University has recorded in his writings of his days in the RSS. In contrast to the RSS leadership, V.D. Savarkar, Hindutva exponent, at least had a highly poetic imagination and was a creative writer of no small standing. Some of his poems sung by Lata Mangeshkar, including one about the longing for a return to the motherland, are moving.



V.D. Savarkar.


In contrast to the RSS’s aversion for fresh thinking, Savarkar emphasised the acquisition of knowledge. He said the moderates had produced many men of eminence. Can you name among you any man of the calibre of Gopal Krishna Gokhale or R.C. Dutt, he asked his followers.

Like Deshpande another dissenter was Raghunath Vishnu Ranade, (who happens to be my maternal uncle), political science professor who was close to M.S. Golwalkar, the then RSS chief, before he turned into a Marxist and a supporter of all progressive causes.

The leading light of the RSS in the thirties, Gopal alias Balaji Huddar, rebelled totally, became a Communist, fought in the Spanish civil war against Franco’s fascism in 1937, was imprisoned there for six months and had assumed the name of John Smith. He fought in the international battalion named after Sakaltvala, who had passed away a year earlier. Huddar had gone to Spain after studying in London and when he returned he was publicly felicitated in London at a meeting presided over by no less than Rajni Palme Dutt, a theoretician of the Communist Party of Britain and author of several books including India Today. No wonder the RSS does not like internationalism and dissent. (Huddar’s son, an engineer in the electricity board, lived in the same housing colony as mine in Nagpur during my younger days – he used to talk to me about his father.)

In contrast to Balaji Huddar, another Nagpur leader, B.S. Moonje of the Hindu Mahasabha, embraced the fascists and had a personal meeting with Mussolini in Italy in 1931. Nehru had studiously avoided meeting Mussolini during his visit to Europe.

In contrast to men like Moonje, the Communists produced a galaxy of stalwarts, internationalists and men of science. Dr Gangadhar Adhikari, a founder of the Communist party in India, had done his Ph. D. in chemistry in Germany and drawn inspiration from Einstein and Max Planck.

His nephew Dr Hemu Adhikari, who passed away in Mumbai last month, was a leading campaigner for promoting a scientific temper and rationality; he was a prominent stage and film actor and also a scientist in BARC, Bhabha Atomic Research Centre. So it was natural that he should have played a prominent role in Marxist Bertolt Brecht’s play Life of Galileo. Dissent is at the core of the play.

Hemu Adhikari was also very particular that one should not only acquire knowledge of science and other subjects, one should also develop a scientific temper. That is why he was troubled when some of his scientist colleagues behaved unscientifically during the solar eclipse, considering it as inauspicious, closed their windows.

One organisation which came close to rivalling the RSS in terms of cadres and drills and shakhas was the Rashtra Seva Dal formed by socialists like N.G. Goray , Shirubhai Limaye, V.M. Hardikar and S.M.Joshi in 1941. Congress and socialists leaders woke up when their own children began getting attracted to the RSS and started attending shakhas.

Some socialists spread out to other states to launch work there like Bapu Kaldate went to Bihar where picked up Bhojpuri. Sane Guruji, a revered Gandhian writer, did a lot of work for the Dal with his satyagraha for entry of Dalits to the Pandharpur temple .

The Dal had a rich cultural repertoire with many prominent figures including poet Vasant Bapat, P.L. Deshpande, Nilu Phule and it influenced many including actor Smita Patil.

However, some Congressmen, who wanted to take over the Dal, were biased against the socialists and Morarji Desai, the then home minister of the Bombay state, placed curbs on the activities of the Dal in 1947 and the organisation subsequently went into a gradual decline.

In contrast to the RSS, Phule’s excellent movement was aptly named Satyashodhak Chalwal, dedicated to the pursuit of truth with an independent mind, education and social reform. But then some people converted the movement into a movement against Brahmins, not Brahminism and it was led by the upper class who kept out Dalits. That shattered the dream of creating a new society based on social and economic equality.

The RSS stands in opposition to this fine tradition of progressive thinking and debate in Maharashtra. By speaking out against dissent so openly, Bhagwat made it clear, even before waiting to see what Pranab Mukherjee would say, that he had no interest in debate and was not open to other ideas. Instead of talking about social ills, the RSS has closed all its windows.

Pakistan Today - Fair is foul and foul is fair

Najam Sethi in The Friday Times





Imran Khan’s chum for all seasons, Zulfikar Bukhari, is one of the Panamagate accused who is being investigated by NAB for money laundering. He was on ECL. Accordingly, the FIA offloaded him from a chartered aircraft scheduled to take the Great Khan to Saudi Arabia for Umrah. But one phone call from Imran was all it took for the interior ministry to immediately grant Zulfi a “one-time special exemption” allowing him to exit. The rule is that all ECL cases are put up before a special committee of the interior ministry for decision and NAB is then informed of it. It is incredulous that such a special committee was either constituted in seconds, deliberated for a few more seconds and ruled to grant such an exemption or was simply dispensed with altogether. Under the circumstances, it is worth asking whether the interim prime minister was informed and permission sought and what arguments, if any, were noted on the file for such an extraordinary use of discretionary powers without the sanction of a court or under intimation to NAB.

Consider, also, the case of General (retd) Pervez Musharraf who is legally classified as a “fugitive from justice” because he has been “absconding” from his various trials for treason, murder, etc. The then Prime Minister, Nawaz Sharif, had allowed him to leave the country for “medical treatment” on the request of the then army chief, Gen Raheel Sharif, after assurances in court that he would return to the country within the month to face the various trials. When he refused to obey countless court summons for over two years to return and face the music, the government cancelled his Pakistani passport facility. Now he says he wants to return to the country and contest the elections and the Supreme Court has ordered that all hurdles in his path be removed. Emboldened, the good General has demanded that he should be given pre-arrest bail in absentia. It may be noted that for all the years that he was on trial in Pakistan, he never spent even a second in “jail” because his five star residences in Islamabad and Karachi were duly declared “sub-jails” by the courts when he wasn’t luxuriating in vvip suites in vvip hospitals for treatment of unknown maladies.

Nawaz Sharif, on the other hand, hasn’t been so “favoured’. He was swiftly disqualified from being prime minister because he didn’t reveal a source of unreceived income from his son. He is on ECL and permission to visit his ailing wife in London is given only niggardly. He has been compelled to attend hundreds of court hearings. Not a single plea of his lawyer for adjournment has been accepted. Indeed, in a strange twist of legal logic, the NAB court has held that it will hear each of the three cases against him separately but give a judgment in all three at one and the same time. Now the SC has ordered the court to wrap up the cases and decide before the elections, regardless of the status of the examination and cross-examination of witnesses, and unprecedentedly ordered the defense lawyer to attend the court on Saturdays and Sundays as well. The lawyer has refused and withdrawn from the case, compelling Mr Sharif to protest while casting about for another competent lawyer familiar with the case.

Pundits predict that the court will return a plea of guilty against Nawaz Sharif in at least one of the cases and knock him out. They also predict that General Musharraf may be allowed to contest the elections regardless of the treason and murder charges and his truant behaviour as an absconder from justice and helped to win a seat. The fate of the expected disqualification petitions against Imran Khan (for fathering an illegitimate love-child in the USA) in all the five constituencies in which he is contesting across the country may also be foretold. The ECP and courts will doubtless find arguments to quash the truth of the loudest whisper in the country. Last but not the least, Reham Khan’s account of her ex-husband’s “exploits”, that clearly violate the sanctity of the very constitutional provisions 62/63 under which Nawaz Sharif was sacked and is now being prosecuted as a fugitive from justice, will be trashed by a complaint media and banned from public consumption by the courts.

There is a political consensus among the various state institutions that comprise the Miltablishment that Nawaz Sharif cannot be allowed under any circumstances to return to power and Imran Khan must be elevated to the prime ministership, come hell or high water. Towards these ends, the Miltablishment has engineered the Senate elections to its satisfaction and is now primed to achieve “suitable” results in the general elections. Meanwhile, the popular will is tilting against this brazen exercise of fascist power.

Fair is foul and foul is fair. This electoral exercise will go down in Pakistan’s constitutional history as the greatest robbery of all times, with dire consequences for state and society.

Adam Smith Revisited - The Moral Crisis of Capitalism

Shahid Mehmood in The Friday Times

When the economic recession of 2008 struck the world economy, not many would have guessed that this event would set off a wave of serious introspection about the nature and morality of present day capitalism. Many, including economists, thought that this is just a continuation of the traditional cycle that an economy goes through, whereby periods of growth are followed by recessions (which in general means lower GDP growth rates). It was expected that things would be back to normal within a few years.

But something different transpired this time around. Millions of people around the globe, especially in the leading centers of global capitalism like London and New York, spilled onto the streets and vented their anger against the present state of capitalism. This movement became the ‘Wall Street vs Main Street’ movement. Many years down the line, the world economy (mainly the industrialised world) is yet to regain its growth trajectory and the waves generated by the movement still reverberate. In effect, what we have is a crisis of the workings of capitalism. It would be interesting to delve into some details in order to understand how this state of affairs came to be?

This discussion takes us back to a Scottish professor of moral philosophy and his writings on market economy and capitalism. Adam Smith, who is now revered as the father of economics, wrote his magnum opus Wealth of Nations (WON) in 1776. Considered the bible of economics, one of the most outstanding insights of the book was that a person’s greed ends up benefitting the community as a whole. Two sentences (abbreviated) lay out this principle; Smith contends that: “It is not from the benevolence of the butcher, the brewer, or the baker, that we expect our dinner, but from their regard to their own interest…” and “Every individual… neither intends to promote the public interest nor knows how much he is promoting it… he intends only his own security; and by directing that industry in such a manner as its produce may be of the greatest value, he intends only his own gain, and he is in this, as in many other cases, led by an invisible hand to promote an end which was no part of his intention”.

Smith’s workings of an efficient capitalist system is tied to the workings of the ‘invisible hand’, the famous concept which explains how greed that ends up promoting the greater good. But the most noticeable aspect of this concept is that Smith first mentioned it in an equally remarkable (though less discussed) book of his called the Theory of Moral Sentiments. Published before WON, it outlined the moral pre-requisites for an economy to function properly. Smith’s concept of the invisible hand, therefore, was closely tied to morality. It reads as follows: “[The rich] consume little more than the poor and in spite of their natural selfishness and rapacity…they divide with the poor the produce of all their improvements. They are led by an invisible hand to make nearly the same distribution of the necessaries of life …”

What Smith envisioned has, up till the end of 20th century, worked pretty well. What we saw in the industrialised nations was that capitalists and entrepreneurs, in pursuit of profit, implemented ventures and projects that ended up benefiting the society as a whole. Setting up a plant for production, for example, was purely done for personal gain. But the venture needed employees, and thus many aspiring job seekers found their sustenance due to the pursuit of greed by the industrialists/capitalists. Gradually, in the face of rising resistance in the form of Marx and others, the economies of nation states gradually transformed into welfare states, whose main beneficiaries were the larger, lower segments of the population and the middle classes. This setting worked remarkably well, and explains how it managed to weather stiff resistance over centuries, none bigger than Communism which met its demise in 1991 with the dismemberment of the Soviet Union.

But the 21st century has seen the consensus starting to unravel, with the Wall Street vs Main Street only the first sign of widespread consternation. And the simple reason is that the workings of the invisible hand are now skewed starkly in favour of the one percent.

The signs of this dysfunction are all around, in numbers and other instances. All around the world, labour’s share of total national income is on a constant decline. The real income (income adjusted for the cost of living), except for top percentile of earners, has been falling gradually. Income inequality is at a historic high. Credit Suisse, which tracks global wealth, estimated that the richest one percent now own half of total global wealth (estimated at $280 trillion).

The 18th, 19th and 20th century witnessed entrepreneurship and capitalism in a manner that every new venture resulted in creation of newer job opportunities, generation of real wealth and comparatively proportionate distribution of wealth. In contrast, today’s wealth creation is largely centered upon financial engineering and application of technological developments. The former is merely a transfer of wealth from the lower percentiles (poor and middle classes) to the rich, and the latter is leading to lesser need for workers as artificial intelligence (AI) does the work without requiring any benefits (wages, health insurance, etc.) and thus saving the owners/entrepreneurs major costs of operating a venture. The global economic scene was once dominated by companies like GM that employed thousands of people. Now, it’s dominated by organisations like Google and Amazon whose quantum of wealth is much larger, yet they employ not even half of the labour employed by big players of yesteryears. Facebook, for example, has a market cap of $370 billion, yet employs no more than 14,000 people.

What factors drive this concentration of wealth? The main culprit, apart from others like government regulations, is technology, especially software and AI. Today’s technology has this extraordinary feature that only a small initial investment is needed to make the first software copy, but the millions following it can be replicated at zero cost. Thus, the owner can earn billions without the need to invest further. In technical lingo, there is zero marginal cost of replication, which makes all this different from yesteryears. These technologies do produce jobs, but these are ‘gigs’ rather than good, quality jobs with financial security. And they pay little, usually sustenance level wages except for technically exceptional people. This means that majority of workforce is already out of contention for good, high-paying jobs, thus contributing towards the labour’s falling share of national income.

The anger of Main Street is understandable. Today’s capitalism delivers wealth in the hands of a few. Those responsible for all those Ponzi schemes that destroyed the hard-earned savings of the working class have largely gone scot-free (too big to fail phenomena). And today’s global economic scene has a heavy imprint of rent-seekers, tax dodgers and financial wizards who do not contribute much to the well-being of the citizens or the real economy. This situation aptly describes the challenge faced by Capitalism. A system that has been exceptional in delivering prosperity and successfully warding off challenges over time now finds itself under severe scrutiny because its underlying mechanism of shared prosperity has, to a large extent, stopped working. Not surprisingly, as the dreams of shared prosperity recede, so does the moral ground for its continuation.

Wednesday 13 June 2018

Trump as defender of democracy

George Monbiot in The Guardian






He gets almost everything wrong. But last weekend Donald Trump got something right. To the horror of the other leaders of the rich world, he defended democracy against its detractors. Perhaps predictably, he has been universally condemned for it. 

His crime was to insist that the North American Free Trade Agreement (Nafta) should have a sunset clause. In other words, it should not remain valid indefinitely, but expire after five years, allowing its members either to renegotiate it or to walk away. To howls of execration from the world’s media, his insistence has torpedoed efforts to update the treaty.

In Rights of Man, published in 1791, Thomas Paine argued that: “Every age and generation must be as free to act for itself, in all cases, as the ages and generations which preceded it. The vanity and presumption of governing beyond the grave is the most ridiculous and insolent of all tyrannies.” This is widely accepted – in theory if not in practice – as a basic democratic principle.

Even if the people of the US, Canada and Mexico had explicitly consented to Nafta in 1994, the idea that a decision made then should bind everyone in North America for all time is repulsive. So is the notion, championed by the Canadian and Mexican governments, that any slightly modified version of the deal agreed now should bind all future governments.

But the people of North America did not explicitly consent to Nafta. They were never asked to vote on the deal, and its bipartisan support ensured that there was little scope for dissent. The huge grassroots resistance in all three nations was ignored or maligned. The deal was fixed between political and commercial elites, and granted immortality.

In seeking to update the treaty, governments in the three countries have candidly sought to thwart the will of the people. Their stated intention was to finish the job before Mexico’s presidential election in July. The leading candidate, AndrĂ©s Lopez Obrador, has expressed hostility to Nafta, so it had to be done before the people cast their vote. They might wonder why so many have lost faith in democracy.
Nafta provides a perfect illustration of why all trade treaties should contain a sunset clause. Provisions that made sense to the negotiators in the early 1990s make no sense to anyone today, except fossil fuel companies and greedy lawyers. The most obvious example is the way its rules for investor-state dispute settlement have been interpreted. These clauses (chapter 11 of the treaty) were supposed to prevent states from unfairly expropriating the assets of foreign companies. But they have spawned a new industry, in which aggressive lawyers discover ever more lucrative means of overriding democracy.

The rules grant opaque panels of corporate lawyers, meeting behind closed doors, supreme authority over the courts and parliaments of its member states. A BuzzFeed investigation revealed they had been used to halt criminal cases, overturn penalties incurred by convicted fraudsters, allow companies to get away with trashing rainforests and poisoning villages, and, by placing foreign businesses above the law, intimidate governments into abandoning public protections.

Under Nafta, these provisions have become, metaphorically and literally, toxic. When Canada tried to ban a fuel additive called MMT as a potentially dangerous neurotoxin, the US manufacturer used Nafta rules to sue the government. Canada was forced to lift the ban, and award the company $13m (£10m) in compensation. After Mexican authorities refused a US corporation permission to build a hazardous waste facility, the company sued before a Nafta panel, and extracted $16.7m in compensation. Another US firm, Lone Pine Resources, is suing Canada for $119m because the government of Quebec has banned fracking under the St Lawrence River.

As the US justice department woke up to the implications of these rules in the 1990s, it began to panic: one official wrote that it “could severely undermine our system of justice” and grant foreign companies “more rights than Americans have”. Another noted: “No one thought about this when Nafta implementing law passed.”

Nor did they think about climate breakdown. Nafta obliges Canada not only to export most of its oil and half its natural gas to the US, but also to ensure that the proportion of these fuels produced from tar sands and fracking does not change. As a result, the Canadian government cannot adhere to both its commitments under the Paris agreement on climate change and its commitments under Nafta. While the Paris commitments are voluntary, Nafta’s are compulsory.

Were such disasters foreseen by the negotiators? If so, the trade agreement was a plot against the people. If not – as the evidence strongly suggests – its unanticipated outcomes are a powerful argument for a sunset clause. The update the US wanted was also a formula for calamity, that future governments might wish to reverse. But this is likely to be difficult, even impossible, without the threat of walking out.

Those who defend the immortality of trade agreements argue that it provides certainty for business. It’s true that there is a conflict between business confidence and democratic freedom. This conflict is repeatedly resolved in favour of business. That the only defender of popular sovereignty in this case is an odious demagogue illustrates the corruption of 21st-century liberal democracy.

There was much rejoicing this week over the photo of Trump being harangued by the other G7 leaders. But when I saw it, I thought: “The stitch-ups engineered by people like you produce people like him.” The machinations of remote elites in forums such as the G7, the IMF and the European Central Bank, and the opaque negotiation of unpopular treaties, destroy both trust and democratic agency, fuelling the frustration that demagogues exploit.

Trump was right to spike the Trans-Pacific Partnership. He is right to demand a sunset clause for Nafta. When this devious, hollow, self-interested man offers a better approximation of the people’s champion than any other leader, you know democracy is in trouble.