Mangalore SOUTH INDIA Vichar Varga, 3-4 OCT. 2015 SPEECH
On behalf of SJM and organisers here I welcome you all to this Southern Zonal Vichar varga in Mangaluru. This place is a historical, educational and economic hub of repute. All of you have come here with a hope that in these two days you will understand not only something about Indian economy but certainly "some of the things" which are failing our country. Genetically modified crops and FDI in insurance, defence and Railways, and this PPP model. The recent Chinese economic turbulence has also triggered querries from all quarters. If the slogan 'China's pain, our Gain' has any depth? We may want to know what actually words like Development mean which have found a mention at least 55 times in the Budget speech read by Sh. Jaitley and Growth which found repeated references at least 15 times in the same budget speech. I think those who will listen calmly, patiently and proactively will definitely be benefitted proportionately. John Pope once said may not apply any of you.
Some to the Church repair,
Not for the prayer but the music there!
So, First thing required is our proactive participation
2. Oft repeated but still very important. HISTORY OF SJM..
SJM was established on 22 November 1991 by Sh. Dattopant Thengadi in Nagpur. Why? To fight back the new imperialism unleashed by Dunkel Proposals, which turned into World Trade Organisation.
*They said That these are new reforms, we said these are ways to deform,
*they called it Liberalisation, we called it is recolonisation.
*They called it Globalisation we called it Hegemonization.
*They say it is Privatisation, and PPP but we call it Promise Postpone and perish. It is a LOOT of PUBLIC PROPERTY BY PRIVATES.
Time has proved us right. 24 years have proved us true. We did things which we found justified, they only justified what they did.
**American meltdown no body predicted,
Not even Master of Reforms and economist PM Manmohan Singh,but Thengadi ji foresaw it 24 years back.
*** shift from Globalisation to GLOBAL WARMING nobody imagined.. which we predicted long ago..
**** nobody was saying that this mad race for technological QUALITY WILL LEAD TO WORLD-WIDE INEQUALITY.. But we said. Here again I would like to introduce you to the basics of our swadeshi philosophy.
The essential ingredients of the Swadeshi thought may be summarised as follows:
Swadeshi means that which is natural and native to a country and society, but allows scope for assimilation of wholesome and beneficial elements from the outside. This applies to economics as well as politics; culture as well as technology.
It is the principle of preferring the neighborhood to the remote.
It commands need-based life, and rules out unlimited consumption as an end.
It renews and relies on family, community and society as socioeconomic delivery systems. It does not substitute these traditional institutions by the State and the Market.
It is not autarky; ( we are not frog in the well but followers of Vasudhaiv kutumbkam, but a global alternative, which accepts only need-based trans nationalismlism.
Swadeshi restores economics to its earlier definition which even now the dictionary meaning of economy indicates, namely, practical human needs, frugality, savings, thrift etc. and seeks to remove the latter-day distortion of defining economics as multiplication of wants and efforts to satisfy them, powered by greed.
Stated in simple terms, Swadeshi rejects materialistic and imperialistic homogenization and aimless trans nationalism of the Western assumption. Swadeshi is a multidimensional thought, embracing civilisational, political and economic aspects of human life and presenting an integrated vision of life in harmony with nature. Serious thinkers of the world have now starting professing the same thoughts, right from Stieglitz to Capra.
Anyhow, we were not silent spectators or soothsayers for all these years, we were protesting all these symbols of Neocolonialism by tooth and nail, on Facebook and email.
The S of Swadeshi is significant in S4. Our struggle in seminars, streets, Supreme Court and Sansad.
We fought successfully, along with others, the bigest corporate of the time - Enron, which is now in the dustbin of history. We fought against WTO's absence of level play field and every time in it's meetings SJM participated to register our protest. Now we see the majority of developing and under-developed countries are with India's stand. We fought for iodine salt, fishermen issues, farmers issues in BT brinjal and GM crops case, as well as against FDI in multi brand Retail issue. We participated in the Plachimada villagers fight against Coca Cola in Kerala, Aranmula again in Kerala, Endosulfan ban case in Kerala and Punjab. We were against Vedanta University Land acquisition case in Odisha, Ski village issue in Himachal Pradesh and were with turmeric growing farmers in AP....and with small and medium entrepreneurs everywhere. With all responsibility I may say that hundreds of seminars and public meetings and seminars, thousands of booklets and lakhs of hand bills have been distributed for mass awareness against dangers of Chinese onslaught on our market and borders. Last year the picketing at the time of Diwali season against Chinese firecrackers is reminiscent of pre Independence day's burning of videshi products called Holi burning. The tremors of our agitation against China's onslaught were felt everywhere. Recently we fought well against certain clauses of the Land Acquisition Bill, and Central Government has agreed to our demands for the time being. May be we weren't successful on every border, but our spirit remained undeterred all the times.
UNDER THE BLUDGEONING OF TIME,
OUR HEAD IS BLEEDING BUT UNBOWED!!
3. Fight AGAINST INEQUALITY :
One of our prime concerns has always been the well being of the depressed classes, downtrodden sections of the society which are most neglected and negated under globalisation umbrella. The 'last man' of Gandhi ji, the 'Antyodya' of Pt. Deen Dayal, 'Dridrnarayan' of Swami Vivekanand has always remained in our focus.
We, from the beginning, were saying that this concept of pseudo globalisation is designed only to benefit the rich countries, nay, rich corporates of developed countries. common man in those countries is also suffering from the pangs of inequality, injustice and inhumanity.
I am tempted to introduce you with one latest Best Seller Book of the world in economics - CAPITAL IN THE 21st CENTURY? It is said to be the biggest economics best seller after Adam Smith.The name of the writer is THOMAS PIKETTY, a 42 year old French writer. It is not the reason I am telling you about the book that it sold 2 lakh copies in a short span of time, not because Economics books rarely become popular but it has viral amongst general readers, not because Piketty's name was googled a hundred thousand times in a week, of course not at all for these reasons. I am telling you that he has proved in his 700 page book with empirical evidences of 30 countries that
A) that wealthy are becoming wealthier and the rest are struggling to make their both ends meet,
B) that actual wages in Britain are lower by 15% than those in 1991, the top one per cent of American workers earned 191 per cent more (in real terms) in 2011 than in 1980, while middle class wages fell 5 per cent.
C) Many of the book's 700 pages are spent marshalling the evidence that 21st-century capitalism is on a one-way journey towards inequality – unless we do something.
D)what is his answer? Piketty's call for a "confiscatory" global tax on inherited wealth. He calls for an 80% tax on incomes above $500,000 ( five lakh dollars) a year in the US.
The finest Review I have come across was by Nobel Laureate Paul Krugman who epitomises in The New York Times saying " the book will change the way we think about our society and we do economics!" Oh yes! I recall here Shri S.Gurumurthy who used to say that not only 'economy but Economics is to be changed!'
Youth unemployment rates in the West have risen rapidly over the last decade (Italy 40 per cent; Portugal ~42 per cent), with the majority staying unemployed for more than two years. Austerity has led to deep cuts in public services, leading to rising crime, lower educational outcomes and worsening healthcare.
While economic growth has varied, the U.K., U.S., China and India have experienced exceptionally large rises in inequality since the 1980s, underwritten by forces of globalisation, technological change, and financial liberalisation. Liberal democracies, once the embodiment of a contented society, are increasingly failing to deliver what citizens want for individual opportunity — equitable economic growth, quality public services and personal security. As Francis Fukuyama states, today’s liberal democracies are increasingly undergoing repatrimonialisation — the capture of independent state institutions by powerful elites. The egalitarian ethos, tempered by the idea of a society, has dissolved
* Remember the oft quoted presumption that out of the hundred big economies of the world, 51 are corporates and 49 are countries.
**. If you are unable to digest this data, let us have a look at KOFI ANNAN'S ( former UN General Secretary)list Astonishing Facts! The richest fifth of the world's people consumes 86 percent of all goods and services while the poorest fifth consumes just 1.3 percent. Indeed, the richest fifth consumes 45 percent of all meat and fish, 58 percent of all energy used and 84 percent of all paper, has 74 percent of all telephone lines and owns 87 percent of all vehicles!
***. The three richest people in the world have assets that exceed the combined gross domestic product of the 48 least developed countries.
**** But The average African household today consumes 20 percent less than it did 25 years ago.
***** The world's 225 richest individuals, of whom 60 are Americans with total assets of $311 billion, have a combined wealth of over $1 trillion -- equal to the annual income of the poorest 47 percent of the entire world's population
Let us come to our motherland. CEO OF WORLD BANK CHRISTINA LAGGARD was talking about Indian examples of inequality. She was exclaiming that the total assets of Indian billionaire have jumped within the last fifteen years not only twice or thrice or four times but TWELVE TIMES. crony capitalism at it's best!
AMRITYA SEN and Drez in their book ' India and it's Contradictions' revealed that total loans which have not been returned from the very beginning upto 2013 amount to 12 lakh crores of rupees. If the dead loans by billionaires have some connection with 12 times increase in their total assets of Indian corporates?
In this duration we recall with horror that 2 lakh and 80 thousand poor farmers committed suicide unable to pay the loans.
AND NOW:
We were happy to listen to the announcement of Shree Modiji that the first right on the assets of our nation is of the poorest of the poor! We were happy that this new Government imposed a big fine on Anil Ambani for creating artificial shortage of fuel gas.
1. TRF ISSUE IN WTO : We were again happy to listen good news from the last WTO meet in Geneva. India's poor's voice was heard in the din of corporates' cacophony. developed nations were concerned about their trade facilitation agreement. Prime Minister Narendra Modi told the visiting US Secretary of State John Kerry and "emphasised the need for developed countries to understand the challenges of poverty in developing countries and their governments' responsibilities in addressing them, when discussions take place in international forums", the Prime Minister's Office said in a statement after the meeting. India is echoing the same stand in other international meets to a major extent. Though there are several lacunae in India's approach at the international fora, but I would dwell on those at a later stage.
2. BRICS MEET : we were very happy to see the Brics conclave that our country was there on equal footing. Equal share was given by India to start a new bank and were happy that one Indian will head this new international Bank. In contrast to Brettenwood sisters World Bank and IMF where CEOs were always from developed countries.
3. NEIGHBOURHOOD RESPECTED.Third big achievement was made at the time of oath taking ceremeony by new NDA government where heads pf SAARC countries were invited. Again visit of Modiji to Bhutan and Nepal are historic. China has created a string of pearls against us and developed economic relations and pacts with neighbouring countries. we have seven neighbours but China has created animosity of them with us. Time and again we thought that China has 14 neighbours and why should we not create friendship with them and give a befitting answer to China. Our PM's visit from Mongolia to Uzbekistan has positives signals towards this strategy. But when our PM was declaring a concession loan of $ 1 billion to Nepal. Oh! India has changed symbolically from beggar's bowl to a donor's hand. India encouraged Nepal to produce more herbal medicines. You know that india has become the No, 1 user of the alloepathic antibiotics in the world, surpassing China and Amereica. If herbal medicines are coming to Inidia it will be a transformation in health care. The HIT formula given by Sh, Modi will not only be unto Highways, Information Technology and Transmission lines for electricity, it will hit the pharmaceutical industry world over and switchover to Ayurveda. Similarly International Yoga Divas to various meets of Indian diaspora in the foreign lands have created an atmosphere that india can become a super power economically as well. Launching of Mudra Bank and several other economic inclusivity schemes have their impact on the psyche of Indian entrepreneurs and retailers in the right direction.
ROADS AHEAD:
1. FDI IN MULTIBRAND RETAIL BE SCRAPPED. For a decade SJM has been agitating against the FDI IN Retail. Now we hear with a sense of relief that Rajasthan's new government of Vasundhra Raje, as soon as it took over the charge, immediately scrapped the permission the previous congress Goverment had given to FDI in multi brand retail. The same thing was done by AAP Govt. In Delhi, but we are waiting for some initiative from Central government. The promise given repeatedly by leaders of NDA has assured this time and again, before forming the Modi Government and even after its formation. It was also specifically mentioned in the Manifesto of NDA.
2. THE MIRAGE OF FDI: Similarly at the time of budget declaration, FDI in defence and Insurance was raised from 26 per cent to 49 per cent. we consider it is a totally unnecessary exercise. No transfer of technology is going to take place to what ever level we may raise the cap. Whatever we achieved in science or technology was achieved by over own indigenous ways. Whether cryogenic engine or super computers, atomic explosion of Pokhran repute or our journey toward Mars, were achieved by our own scientists without aping others' technology, Ultimately it is the government of the corporate country which decides about providing permission for transfer of high-end or 'state of art technology' - and usually they don't provide. Similarly the over dependence on PPP model won't lead us anywhere. It is simply a loot of Public Property by privates. So we should come out of the trap of foreign funding.
3. IN WTOs MEET SOLAR ENERGY, INDIGENOUS TECHNOLOGY BE ADVANCED:
Swadeshi Jagaran Manch congratulates the Central Government for taking a giant initiative in promoting solar energy. A 33 times increase from current 3.3 Gigawatts to 100 GW by 2022 in just 7 years is a big leap forward in renewable and eco friendly energy. It will also reduce carbon emission effectively and thus strengthen India's position at the upcoming 21st Conference of Parties on climate change to be held in Paris on November 29. 2015. Moreover. this will kickstart our economy by infusion of more than Rs. 6.5-7 lakh crores. But it will happen only if the larger participation of indigenous firms is ensured and not doled out to MNCs, as has been done previously. Though, a few days ago the World Trade Organization (WTO) panel has ruled against India in a dispute raised by the US over the country's solar power programme, requiring the government to offer a level playing field to both foreign and domestic manufacturers of solar panels. India is likely to appeal against the dispute settlement panel's ruling, which could give it a two-year breather to implement the programme. But this is not sufficient and india should prepare well in this case and indigenous research and subsidies to the Indian manufacturers be given lavishly somehow or the other. So SJM is stressing on the concept of 'Made by India' as compared to 'Make in India'.
4. IN ENVIRONMENTAL MEET INDIA's STAND SHOULD BE UPHELD:
The Indian officials appear well prepared for the international environmental meet to be held in Paris in November 2015. But a recent report in Business Standard has perturbed the nationalist group regarding the ill advised reporting of Arvind Subramanian.SJM from day one of the appointment of Chief Economic Advisor of NITI Ayog Sh. Aravinda Subramanian, has been skeptical about whom he is serving, India or his previous Boss US?
Now, the same man has reportedly advised India to give up its long-held climate policy and negotiation strategy to go with the US while distancing itself from fellow poor countries, and even its BRICS allies. According to Business Standard, which reportedly accessed his note to Modi and Finance Minister Arun Jaitley, Subramanian wants India to give up its rightful claims of financing (from rich countries that have contributed the most to climate change) for climate adaptation and instead focus on reducing its emission.
But for what? Reportedly, according to him, it would “help cement Prime Minister Narendra Modi's reputation as an international global leader". This will also "burnish India's credentials when it seeks membership of the United Nations Security Council". We hope India should not compromise with the cause of poor countries, humanity and Mother Nature only for a pseudo image building of a person! Instead of Subramanian we should heed to the warning of a great Anthropologist, Loren Eiseley, "When man becomes greater than nature, nature which gave him birth , nature will respond "
5. WTO MEET AND OUR AGENDA:
SJM is viewing the 10th Ministerial Conference of WTO on 15th-18th December,15, scheduled in Kenya's Nairobi as an opportunity to usher in our indigenous agenda. Last time Modi Government performed well on the issue of safeguarding India's farmers interests. This time too, raising the issue of protection of biodiversity, extension of geographical indication from beyond the list of mere wines and spirits, etc. will be in the interest of Indian farmers. US and Switzerland are bent upon raising several issues like 3D and compulsory licensing under section 84 in pharma sector, to divert our attention. Generic pharmaceutical medines are the core rising sector of our economy and it's progress should not be thwarted by ulterior motives of developed countries in the name of protecting intellectual proerty rights. SJM team is going to participate this time also there.
6. Generally Modified crops is another area where SJM has always stood for the protection of Indian farmers. Time and again the issue of providing permission to GM MUSTARD and several other crops has been arising and we are raising a vigorous protest against it. Two things are important in this respect. One, that the ruling party was emphatic in stating in its manifesto that “GM foods will not be allowed without full scientific evaluation on the long term effects on soil, production, and biological impact on consumers.” Anyhow neither the government nor the Genetic Engineering Approval Committee (GEAC) has disclosed the contents of promised scientific evaluation, and “if any or what changed between April 7, 2014–when BJP release of said Manifesto. Secondly, BT or GM seeds won't come in exclusivity. It's a package of others pesticides, herbicides and chemical fertilisers, which profits only the big corporates like Monsanto and the like and not the poor farmers whose suicide numbers has crossed three lakh. Thirdly GM crops are irreversible. So SJM is also encouraging indigenous cow protection, organic farming and other decentralised ways to save the small and marginal farmers.
7. China's PAIN - Our GAIN:
The recent volatility of China's economy have somehow shocked the world's economy. Nearly one trillion US dollar has been pulled from China by developed countries due to this tremor. To understand the gravity of this volatility, let's make a crude comparison. Indian economy is counted as worth two trillion dollars and China has lost double of this amount in its recent share market turmoil, i.e. Four trillion dollars! There are now 90 million "retail" investors - ordinary people who own stocks - in China, making up 80 per cent of all shareholders. This means that there are more stock market investors in China than there are Communist Party members, at least according to Bloomberg. Last year, the Chinese central bank slashed bank rates to make available cheap loans for investors in the market. While other countries invest cheap loans in the bond market to bail out their ailing economy, China invested in its equity market. As a result the Chinese stock market rose to new heights. As our PM had said in a recent meeting of India's big bankers and billionaires to brainstorm to not only safeguard our country from this upheaval, but on the other hand we should take benefit from this China's slowdown. Ways are to found as to strengthen our economy by promoting exports and invigorating our manufacturing sector. SJM has been launching campaign in the past also that we should not buy Chinese products and have coined slogans like : 'Know China and No China' and Save markets, Save Borders from China'. So it's is good time that if we are able to mobiles public opinion on this issue, and really, China's Pain could be Our Gain.
8. LET'S LEARN A LESSON FROM GREECE:
Greece has survived from bankruptcy, but so many lessons are to be learnt from this country if India is to survive. As An economist in Delhi said , Delhi will probably be like Greece by the end of AAP's 5 year term. What is happening in Greece is the result of socialism in excess. Greeks want to lead a royal life just because they are born in Greece. After all it's the country of Alexander the great. For example everybody gets pension. Everybody, means everybody. At the age of 57, a Greek self employed person retires with full State pension. If a Greek works in a hazardous profession, he can retire with full pension at 50. There are about 450 professions classified as hazardous. One of them is hairdresser. So if a Greek is a hairdresser, he can retire with full state pension at the age of 50. All entitlements- healthcare, education, unemployment benefits, housing, etc., are there With these securities in place, Greeks stopped having babies. If government is there to take care of you from cradle to grave, why maintain families. Fertility rate in Greece is just 1.41, no it's only 0.23% UNO. But independent data says less than this but WORLD BANK SAYS -0.18. Here the position of other so called developed nations! What the TIME magazine reported is startling: remaining alone is the new norm!
So there are not enough Greek youth to take care of the old aged Greeks.What is happening in Greece, is likely to happen in some other European countries.
The policy of Welfare State- of collectivizing only incomes and not means of production will end up destroying some of the richest and most advanced countries on the planet! So, Greece story is not of financial collapse, it is leading towards a cultural collapse!
MORAL:
The recent release of the socio economic caste census (SECC) by the government on July 4, 15, paints a very grim picture of the poverty and a nightmarish deprivation of vast masses in general, with high caste-specific discrepancies. It indicates a worse thing that the situations of the marginal worker is not only bad, it has worsened in the last decade too, a period known as of LPG. So Modi government has found the lowest sea level where to showcase his development story. It's a big challenge and kick starting point for him to usher in an era of economic inclusivity!
None can doubt the intentions of Modi government regarding
Similarly, when today, more than ever before, global technology companies are eyeing India, the question the Indian government should be asking is: Should the Indian digital economy be ‘‘Make in India’’, or ‘‘Expand into India’’? We can take a cue from China. China’s digital boom story is, at least partially, due to China’s interest in incubating domestic digital business growth by limiting access of global majors to the Chinese market. India, conversely, has been an open door for global companies, which has led to Google and Facebook’s dominance in India (which today capture more than 75% of India’s digital advertising pie, despite minimal operations here). Even India’s largest digital company, Flipkart, is over 80% foreign owned by investors. The truth is that India’s Baidu is Google, India’s TenCent is Facebook, and India’s Alibaba is Flipkart, owned by Tiger Global and Naspers. And most of that development, except for Flipkart, is being done abroad. India should progress in a novel way, on the untrodden paths. India has the heritage of peers and seers. It is the golden jubilee of an ideology of Pandit Deen Dayal ji with the name of Integral Humanism, it should usher in an era of peace and prosperity not only for India but for all the Globe. So new paradigms should be started of sustainable growth and real development, Ganga is a symbol of environmental care. Similarly Mother Globe is to be taken care of, a slogan which should find resonance not only in Indian , but whole day of the world. Let's complete it with Thengadi ji's words.:
"What is the solution for the ills of the world? Neither the Right nor the Left is the solution. Short-cuts will not help. Short-cuts will cut you short. The real solution comes only from Indian culture based on Dharma. The path of Dharma is a long way. But, that is the only way. So, it is the shortest way."
