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Rupee Falling, Inflation, Prices, Corruption, Incompetent Leaders & Economic Emergency

The worst has happened in the Indian economy! Prices are beyond the control of the government. Inflation challenges a government that pleads helplessness! Corruption is open loot by whosoever can do that and the government simply denies it as it does the incursions by the Chinese or Pakistani Armed Forces in to the Indian territory. The Rupee is falling awfully fast in comparison to the US Dollar. The Prime Minister has no solution. The Finance Minister rubs salt in to the wounds of the common man. What else is his 10 point programme? Just look at his brilliant 10 points: revive manufacturing, promote exports, boost investment, contain fiscal deficit and current account deficit, increase capital expenditure by PSUs, recapitalization of public sector banks, resolve issues on coal supply, deal with iron ore import ban, environmental clearances, remove land acquisition related hurdles. How are these measures different from “governance”? Is a government not supposed to do these very things? This government has been ruling for more than 9 years now and is left with less than 9 months to demit office. Can any government do anything on these 10 points in a short span of less than 9 months? PERHAPS THIS GOVERNMENT IS THINKING OF IMPOSING ECONOMIC EMERGENCY ON INDIA! If that happens, democracy stands scrapped in India forever. This government needs to be warned to desist from any such ill advised move.  Simultaneously the people need to be cautioned of the lurking danger. Unless the people rise as one single force in advance and bring about a change of government rather expeditiously, there is a real danger of a worse form of emergency than the one imposed by Indira Gandhi. The danger is compounded by the number of plutocrats and kleptocrats controlling the levers of power in India presently against one Indira Gandhi of the black emergency in 1975. This government invents foreign hand in the economic conditions of the country and the pathetic fall of the rupee exactly as Indira Gandhi used to say. This government is dysfunctional, compels the judiciary to act for it in all major economic decisions whether expenditure on organizing commonwealth games or allocation of 2G spectrum or coal mines or land parcels or environment, and then blames the courts for economic ills of the nation! Excuses, subterfuges, escape routes and scapegoats are manufactured as conveniently as statistics!

The economy is in a very bad shape- a historic achievement of failed economist rulers of India! Ruchir Sharma, Head of Emerging Markets, Morgan Stanley Investment Management has this to say: “Prime Minister Manmohan Singh, an economist, has been consistently wrong on the economy”, The Times of India  August 28, 2013. The singular achievement of the Manmohan Singh government has been the harvesting of poverty for electioneering without any thought for the health of the economy.  His government had played havoc just before the 2009 General elections to the parliament by waiving farm loans worth more than 75000 crore rupees. How much the genuine poor and marginal farmer got out of it is not known, but criminal investigations are going on in several cases of fake claims and beneficiaries. As if it was not enough, the second term of Manmohan Singh ji in office saw the worst ever economic offences of loot of the public assets and treasury. Another scam of fake leave travel claims(LTC) by officials or travel claims by members of parliament is waiting to blow in  the face of the government. This government has disappointed; it has failed; it has proved disastrous and it is going to end up destroying the very political, social and economic foundations of the Indian democracy.

This government despises the word “socialist” and what a better way to say so than the assertion of Manmohan Singh that his cabinet is better than that of Jawahar Lal Nehru. Nehru was hated by most world powers. Words like socialism, communism, Marxism invoked instant hatred in those days. Even in India, the careers of many talented young men were ruined by implicating them as sympathizers of communists! Those were the days of the cold war. Nehru not only talked socialism but NAM (Non Aligned Movement) too. Nehru’s India was poor, hungry, under developed but determined to progress confidently. That was hardly to the liking of the Super-powers. That is not to the liking of Manmohan Singh and other fellow economists, tutored by the same super-powers and their instruments like the World Bank, International Monetary Fund or other such entities. That is the reason of the falling rupee, inflation, price rise, shrinking exports and swelling imports, declining manufacturing, loss of jobs and solicitation of foreign direct investment (FDI). Manmohan Singh is an economist in name only! He will do nothing to improve the economic conditions. If anything, he will liberally contribute to making the situation even worse, for that is the need of the neo-colonialism, which is manipulating the economies of countries like India. India, which started its economic journey by laying a solid foundation in the “core” industries by making huge investments through public sector undertakings, is now sought to be privatized in a manner that benefits the market forces at the cost of the nation. It emaciates the country to convert it in to a mere market, so that the neo-colonialists could protect the jobs in their countries for their own people and maintain their high standards of living. While the average Indian has become poorer in the last more than 9 years of the Manmohan Singh led government, only the partners of the colonial powers have become richer. It seems the government has a clear agenda set by these colonial masters to damage the Indian economy as much as they can in the short remaining time of a few months before they are dislodged. The foreign powers have no permanent love for the governments they establish in developing countries- they change them as easily as they set them up.

On the one hand is the dark economic scenario, on the other is the real danger of “Food Insecurity” that has been introduced by a misleading Food Security Bill. It will help food disappear from the plate of every Indian below the “Rich” category. It is nothing more than a reward to political followers, who work without regular wages in nascent democracies like India to have a means of livelihood. The Minister who piloted the Bill in the Lok Sabha admitted that 30% of the food grain meant for the poor through the PDS(Public Distribution System) is misappropriated by its handlers! The figure of 30% is a figure arrived at by the minister after skillful pruning by the bureaucrats, who are so daring to tell lies that they fear neither parliament nor people nor press! The pilferage of the PDS supplies is simply scandalous. It is one of the biggest ongoing economic offence of India that even the opposition governments could not rectify.

This food insecurity will be the worst disaster in Indian agriculture once the GM crops are allowed. The minister concerned is forcefully selling GM crops by quoting the success story of the Bt. Cotton. If the crops suffer genetic damage or render the farms infertile or cause any other damage, there may be no remedy available in future. Such a hurry will prove counter green and white revolutions  (the two are complimentary). In fact, it is likely to prove the biggest “food insecurity” in India, making us beggars like during the decades of the 1970s and the PL-480 grains. Do we want that scenario to be repeated? Food security, according to the Food & Agriculture Organization is ensured by three components and growing enough food is one of it. What if the introduction of the GM crops proves fatal subsequently ending in poor farm productivity? The foreign countries are being referred to buttress the case in India though excepting for maize by one or two countries, not much has been done by them in other crops. Cotton is not food grain! The minister is mixing up edible produce with inedible ones. We are constantly suffering the poor quality of vegetable because of experiments with these crops and overuse of chemical fertilizers, pesticides etc and use of contaminated water for farming. Vegetables like bottle gourd or bitter gourd, the staple of the common man, simply don’t cook because of reasons that only the agriculture ministry can explain before selling hard the GM crops to the farmers. The judiciary has to be approached by the extremely worried civil society. The Finance Minister or the Agriculture Minister might respect or blame the judiciary as they like, but the unfortunate reality of the Manmohan Singh government is that it does not govern but makes the courts perform the executive functions on its behalf. Do we have any hope left under such a malignant disposition? The usually reticent industry captains have started complaining of lack of leadership, policy paralysis, non-governance of the UPA-II government led by Manmohan Singh. Nehru was too tall for Manmohan Singh and his compatriots, He is nowhere near even Rajiv Gandhi. The industry, business, press and people have expressed fears that the country is going to be in the same position in which it was in 1991 when Manmohan Singh became the Finance Minister. The misconception of Manmohan Singh having initiated economic reforms in 1991 has been demolished by me in my book on this site long back. I had written that the reforms brought about by Rajiv Gandhi could not have been upturned by the Narsimha Rao government  in which Manmohan Singh was the Finance Minister,  even if it wanted to. For Manmohan Singh the word “reform” is just a piece of economic rhetoric without any significant meaning as it was for Rajiv Gandhi, the real initiator of economic reforms in a country afflicted by the inspector Raj in a quota-permit-licence regime. The UPA-I & II governments have done no real reforms. On the contrary Manmohan Singh has revived with full vengeance the old inspector & licence Raj! It has tricked the trusting people of India by hyperbole like social sector spending and subsidies, as if we are still under some royal emperor, who is kind and generous to dole out subsidies or free ration to the poor. Indians are hard working and self respecting people, who seek meaningful and gainful employment not charity. This breed of economist rulers refuses to understand this significant fact. A government that fails to understand the people it governs is no government.There is a genuine leadership famine in the country which I had expressed in my book also. I had examined the economic mismanagement and GM crops issues in my posts on this site earlier and I feel vindicated by the painful developments  in the country today making all right thinking people raise their strong voice against such mal-governance. Even the press has started raising issues as the TOI has done in its Delhi edition of August 28, 2013.

The people have only one option: change the government before it changes democracy in India in to kleptocracy for decades.

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