Friday, October 1, 2010

IT IS TIME FOR HINDI-CHINI BYE BYE

Rising powers have a habit of flexing muscles. They are also genetically programmed to keep pushing the envelope; to keep cajoling, threatening, posturing and browbeating neighbours and other global powers. Germany did that in the beginning of the late 19th century. Japan did that in the first half of the 20th century. Russia did that even before the end of the Second World War. The result was two World Wars and a Cold War. Now, it is the turn of China to enter the equation.

Will the rise of China eventually lead to conflict, violence, bloodshed, hatred, triumphal emotions and even a war? If you go by history, violence, bloodshed and war are very much on the cards. Notice how China behaved almost immediately after it surpassed Japan as the second largest economy of the world. It has ploughed into a war of words with Japan. Ostensibly, the dispute is related to conflicting sovereign rights of the two nations over East Asian waters. In reality, it is China flexing its now hefty muscles and generally telling the world that it is really a Big Boy now; not to be trifled with. It doesn’t help that Japan had once militarily occupied China; Chinese rulers don’t seem to mind stoking jingoistic fires, as the average Chinese citizen is reminded again and again of Japan’s role as a former Imperial power.

China is treating India even more disdainfully. It refuses to allow a serving army general to visit China only because he is posted in Jammu and Kashmir which, China now seems to think, is a disputed territory. It is refusing to give visas to people from Arunachal Pradesh, since it claims the state actually belongs to China. It deliberately provokes and humiliates India by stapling visas to the passports of visiting Kashmiris instead of stamping them. It tried every trick in the book to sabotage India’s entry into the formal club of nuclear powers. Having failed, it is publicly and loudly doing everything it can to help Pakistan with nuclear technology and reactors; in a deal that mirrors India’s nuclear deal with the United States.

This China has to be stopped before it goes too far; so far down the road that conflict and war become inevitable in Asia. And India is in a unique position to play the kind of balancing role that will prevent that kind of catastrophe. As of now, Japan and India are the only powers in Asia who can say no to China. Others like South Korea, Indonesia, Malaysia and even Australia too would love to do that; but they simply don’t have the heft to do so.

As the visit of US President Barack Obama draws near, India strategists must ponder over this new role India must play in Asia. The idea is not to oppose everything that China does. But it is to send an unmistakable message to the rulers in Beijing that that there is a limit to which they can proceed and not beyond that. How about persuading America, Japan and ASEAN nations to announce that Tibet is disputed territory? How about providing special incentives to investors from Taiwan?

The sooner China realizes that there will always be limits to its power, the more its rulers will think before crossing the line while playing Big Boy. Frankly, that would be good even for China.


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Friday, September 17, 2010

THIS HAVE-A-CAKE GOVERNMENT!

The pink papers have been going ga ga over the spanking new Wholesale Price Index (WPI). First, the new index shows that the rate of inflation is 8.5% while the old index would have it at about 9.5%. Conjure and juggle numbers and voila, you have taken care of the aam aadmi! Second, the new index (admittedly) better reflects the changing structure of the Indian economy where citizens now consume a larger basket of products and services. More than 220 new product and service categories have been added to make the index more representative. That’s compelling logic no doubt.

But take a quick look at the kind of new product and service categories added and you will immediately realize how this government – thanks to a hopelessly ineffective opposition and a virtually supine and servile media – is getting away by fooling all the people almost all the time. Some of the new products that are part of this ‘more representative’ index are beer (a weight of 0.155), ice cream, mineral water (I am sure distressed farmers rush off to buy a bottle of Bisleri along with pesticides when they see suicide as the only option), blended liquor, gold (a weight of 0.364), computers, washing machines and refrigerators (a weight of 0.194). How many of the 500 odd million Indians who live in abject and degrading poverty drink beer & mineral water and go to swanky malls to buy computers and refrigerators?

Sure, some might argue that the presence of 500 million poor Indians does not mean that we don’t need a ‘better’ and ‘bigger’ WPI. After all, the consuming classes too are Indian citizens. Fair enough. But how about an honest attempt to create a new consumer price index that reflects the consumption patterns of the really poor and of families hovering on the edges of poverty? Of course, we have consumer price indices of various kinds – for industrial workers and even for agricultural workers. But when was the last time you heard about this government spending time, money and energy on committees to upgrade those indices? The point is simple: for the really poor, more than 80% of income is spent on food. And with rampaging food inflation, you can well imagine their plight. Nobody talks about it anymore because the vocal middle class which also consumes the media has been virtually insulated against inflation because of a rapid rise in family incomes – both in the private and the government sector. And yet, imagine the hungama that is created when the price of LPG cylinders is raised by a relatively meager amount. Really, this is unparalleled hypocrisy for a society that claims to be democratic and a government that claims to think mainly of the aam aadmi.

Food-grains rotting while the poor are starving? This government ticks off the Supreme Court for interfering in policy matters. Vocal and politically powerful groups demand more reservations? Give it to them: most of them will not go to a college anyway. The poor dying of malaria and tuberculosis by the tens of thousands and their families going bankrupt due to medical expenses? Give more ‘subsidised’ land for corporate hospitals.

By the way, the new index also has an entry called ‘rose’. Wonder what Jawaharlal Nehru would have thought of that.


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