Property Broking is Fraud

January 17, 2008

I think even mommybloggers will not object if I call property broking a fraud occupation. After all, it seems to be giving Prakash Kumar Thakur far too much free time:

“It’s emotional blackmail,” declares Prakash Kumar Thakur, basking in the attention brought by his court case against the tennis star. She has been asked by a court to appear before it on March 10.

“Yes I am happy,” says the 28-year-old property broker, and adds, “the admission means she knows she is guilty”.

Sportspersons alone aren’t at the receiving end of Thakur’s appeal spree. He has also filed a case against a major publisher for “wrongly printing” the Tricolour in a Class VI book, and moved the court against the film Hanuman Returns. Pandey and he have made everyone from the film’s producer to Sharmila Tagore a party for joking about Hindu gods like Hanuman.

Recently, when a woman’s organisation calling itself the Lathi Brigade asked them to withdraw the case against Sania, saying the picture of her with her feet on a table that also sported a Tricolour was the result of trick photography, they too got slapped with a legal notice. Thakur’s charge is that their comment amounted to contempt of court.

(link)

Someone, file a 295A case against him. Emotionally blackmailing muscular Gult girls offends my religious sentiments.


The Meaning of Socialism

January 9, 2008

‘When I use a word,’ Humpty Dumpty said, in a rather scornful tone,’ it means just what I choose it to mean, neither more nor less.’

(link)

The Supreme Court has rejected Good Governance Foundation India’s petition to have the word ‘socialist’ struck out of the preamble of the Indian Constitution. This is because the word socialism does not actually have a fixed meaning, and can be interpreted any which way:

Chief Justice K G Balakrishnan, who headed the three-judge bench, observed: “Why do you take socialism in a narrow sense defined by communists? In broader sense, it means welfare measures for the citizens. It is a facet of democracy.”

 

“It hasn’t got any definite meaning. It gets different meanings in different times,” PTI quoted the the Bench, as saying.

(link)

The vital question now is – does this whole different meaning in different times thing apply to the other words in the preamble – democratic, secular, and sovereign – as well?

If these words don’t have any definite meaning either, that’s good news for me. I can go ahead with my plan to create a one-Brahmin-five-votes imperial republic where Saivism is the official religion, and it’ll still be in accordance with the current Constitution. No need to expend effort writing a new one.


Nationalising Rivers

December 13, 2007

This is brilliant… not:

With several hydro-power projects stuck due to disputes among states over water-sharing and related issues, the Ministry for Water Resources plans to bring some rivers under Central ambit by identifying them as “national rivers” to tap their potential for hydro-power and irrigation.

Speaking to The Indian Express today, Union Minister for Water Resources Saifuddin Soz said: “The country has failed to properly harness the hydro-power and irrigation potential of several rivers due to inter-state disputes. Even conservation of rivers has fallen victim to ownership. For better conservation, better utilisation of irrigation and hydro-power potential and to maintain better flow across states, I plan to get some rivers adopted as national rivers.”

(Indian Express)

Oh joy. So the solution to a tragedy-of-the-commons problem is… to enforce the commons status of the resource in question through the force of law. And instead of removing the scope for disputes, to give the Central government the power to resolve disputes, stakeholders be damned.

Hey, I have an idea! Why don’t we try this for telecom spectrum? Oh, wait…


More on Property Rights

November 2, 2007

Mint has an interview of Hernando de Soto today, where he talks about how clear property titles empower the poor, and what India needs to do about this.

Hernando de Soto is a Peruvian economist. His major insight was that poor people may own or occupy land and houses, but the legal status of this property usually isn’t clear. So, even if they aren’t actually occupying anyone else’s property, they can’t reap the full legal benefits of this.

The legal benefits of this include:

  1. Being able to establish a proof of residence (important whenever you need to get something that requires a billing address- phones, bank accounts, credit cards, and so on)
  2. Reducing the risk of living in a neighbourhood classified as a ‘negative area’ by a bank, and so losing out on access to credit – this is a huge problem in India.
  3. Being able to borrow against your property, which provides capital to start a business, meet unexpected expenses, and so on.

He has written a book called The Mystery of Capital in which this is explained in detail. Unfortunately it is also explained very badly, and the book is very complex and difficult to get through. Tragically, the Mint interview is the same, and his answers are very long and complicated, though still very insightful if you can penetrate them.

However, the last paragraph has this great quote:

But if you are able to document your extra-legal sector, document its entrepreneurality, and show how that could be many times better if it takes place within the rule of law, it has got to motivate politicians. You have got to say, if you do this, it will increase your votership by 20-30%. Then you will win. That’s the way politicians think.

Related post: this one, with a link to Gautam Chikermane in the Indian Express talking about de Soto and property titles.


Hacking the Media

November 2, 2007

CNN-IBN wants to interview me today for tips on cracking the CAT. If they do a live telecast instead of a pre-recorded one, the temptation to scream ‘Prakash Karat is a traitorous bastard!’ will be overwhelming.

Update: It was prerecorded. So I generally told CAT aspirants that there was no point mugging anything new two days before the test, and that they should go out for coffee or icecream. If only they had been running a story on what CAT prep over a year should be like, I could have furthered the free market fundamentalist agenda by telling everyone that the best way to prepare for the reading comprehension section is to regularly read Ajay Shah, Niranjan Rajadhyaksha, and the Indian Economy Blog.


Sainath is Innumerate

October 31, 2007

P. Sainath being innumerate is actually the most charitable explanation for this editorial. A less kind explanation is that his bias is making him too lazy to do his research properly, and a very unkind explanation is that he’s actively using scare tactics to push an agenda.

I refer specifically to this section:

Let’s revert to the latest maternal mortality figures released by the WHO and others. Some 536,000 women died in childbirth in 2005. Of these, every fifth one of them, at least, was an Indian. That is, 117,000 of them. A total that could only be matched by Nigeria, Afghanistan and Congo together.

Does Sainath not understand the concept of per-capita mortality rates (which makes him innumerate at best and stupid at worst), or is he intentionally not bringing them up (which makes him dishonest)?

The report Sainath is referring to is here. Scroll to Page 23 of Section 1 (which is Page 29 of the PDF file). This is the table which has the estimates of maternity deaths. Page 24 has the India figure: as Sainath says, it’s 117,000.

What about the three other countries? The figures are:

  • Nigeria: 59,000
  • Afghanistan: 26,000
  • Democratic Republic of the Congo: 32,000

which totals to 117,000 as well.

What Sainath omits, of course, is that India’s population is one billion people, much more than that of Nigeria, Afghanistan, and the DRC taken together. What is very curious is that the report puts the lifetime risk of dying in childbirth and the deaths per hundred thousand childbirths in the same table, and Sainath doesn’t use these measures, which are far more useful and worthwhile. Incidentally, here they are:

Lifetime risk of maternal death:

  • India: 1 in 70
  • Nigeria: 1 in 18
  • Afghanistan: 1 in 8
  • DRC: 1 in 13

In other words, you are four times less likely to die giving birth in India than Nigeria.

What about the number of deaths per 100,000 childbirths (referred to as the Maternal Mortality Rate, or MMR)? In the same table, we get the figures:

  • India: 450
  • Nigeria: 1100
  • Afghanistan: 1800 
  • DRC: 1100

Now, if 1 out of 70 mothers is going to die giving birth, that is still an obscene figure. And there is a long way to go. Similarly, if approximately one of every two hundred pregnancies is going to end in the death of the mother, that’s still nothing to be proud of.

For comparison, here are the MMR figures for the Asian tigers, which started independence poorer than India:

  • South Korea: 14
  • Singapore: 14
  • China: 45 
  • Malaysia: 62
  • Thailand: 110
  • The Phillipines: 230
  • Hong Kong: not considered
  • Taiwan: not considered, because this is the UN, and we can’t offend the Chinese. Oh no.

So there’s a long way to go. But to twist statistics to make India seem worse off than countries with actual mortality risks four to eight times worse smacks of scare tactics. Moreover, an unbiased person would look at the table, and see links with levels of urbanisation, the rule of law, and how soon a country started economic reform. Sainath looks at it and goes off on a tangent to abuse the media for talking about the Sensex instead of this (and doesn’t that argument sound very similar to the one which abuses the media for talking about the Gujrat riots instead of the ethnic cleansing of Kashmiri Pandits?).

Sainath also writes:

In fact, it would be good to devise a health index spanning the reform years. One that looks at how both rich and poor have done health-wise. How many years of life, for instance, are taken away from you by ill-health if you are one of India’s less well off citizens?

Excellent idea. Let’s look at the WHO’s 2000 report on Maternal Mortality. Scroll to page 26. The MMR in 1998 was 540. In other words, the maternal mortality rate has seen a 20% drop in 7 years.

So let’s close with Sainath’s parting shot:

Maybe we need a media relevance index. An MRI scan of mass-produced mediocrity.

Like the mediocrity of his research and grasp of statistics? Pot, kettle, black.


Property, Transaction Costs, and Black Money

October 30, 2007

One last Indian Express link for today: Gautam Chikermane’s column on what India can learn from Hernando de Soto:

Take de Soto’s theory a little further and you’ll probably reach a conclusion that like the sub-head of his 2000 book The Mystery of Capital, capitalism may not be able to triumph in India. While the dreamer in me disagrees, my pragmatic side tells me that in some states the bridge towards that triumph is being built in the form of lower stamp duties.

Going forward, the Delhi government plans to reduce it further — the state cabinet has approved a fall to 6 per cent for men and 4 per cent for women — which is good news for all stakeholders: households, the real estate and construction industry and the government. By lowering rates, the incentive to dupe the exchequer of legitimate taxes falls. The average black or unaccounted cash component in Delhi, at between 40 and 60 per cent, remains high, but it’s early days. Marry this fall in stamp duty rates with the way the Central government is trying to plug every possible loophole on the spending side, and the future of unaccounted wealth moves from black to bleak. Scholars have argued that state governments could double their stamp duty receipts if properties were valued correctly.

But like a chicken-and-egg syndrome, I don’t think that’s likely to happen unless, ceteris paribus, stamp duties fall like they have in Delhi, West Bengal and Uttar Pradesh.

The emphasis in the last quoted paragraph is mine.

Read the whole thing

And this reminds me that I really should write followups to my post about allowing farmers to sell their land.


Tandava and the Open Society

October 29, 2007

Drawing on Jerry Rao’s funda of Kipling and Rushdie having a Vaishnavite and Saivite view of India, I think it is good and worthwhile to apply this concept across the board. Especially to governance.

Read the rest of this entry »


Ram Rajya

October 25, 2007

Under Ram Rajya, the ruler derives the moral authority to rule from the consent of the subjects. This sounds wonderful, but people fail to realise that legitimacy is derived from adherence to the truth, and not from popular support.

Ram Rajya meant that the vocal disapproval of a single washerman led to Ram abandoning Sita, without bothering to examine the truth or the facts.

Today, the vocal disapproval of Prakash Karat has led to the government abandoning the nuclear deal, despite the obvious benefits. We have finally achieved Ram Rajya. Manmohan Singh has accomplished what the BJP failed to do.


Wankers!

October 16, 2007

The UPA has blamed the BJP for not doing enough to prevent terrorist attacks in the states it rules.

This explains it. The Hyderabad blasts took place because the BJP is in power in Andhra Pradesh. Likewise, Mumbai-July-11 took place under the BJP’s watch. Sheila Dixit was out of power on October 26 in Delhi.

(This shouldn’t be taken as an endorsement of BJP governments, which bloody well should have been doing more. But adages about pots and kettles, and motes in eyes come to mind.)