Thoughts And Trivia

One post from this blog was quoted in BBC correspondent Sam Miller's book on walking tours of Delhi named above. I was under an assumption that quoting from a blog would need prior permission or intimation at least from/to the blog-owner. I not only don't mind that but rather feel elated. Thank you Sam! One of my class-mate from school (out of touch since 43 years) noticed it first and followed the footnote mentioning my blog and contacted me. It was a pleasant surprise?
The post quoted is a passing reference to history of my school's building "Ludlow Castle".

The author makes well-planned walking trips in Delhi, covering all the hidden nooks, corners and oddities. He has a questioning and overly inquisitive mind, which remains unfazed by bizarre situations. During his perambulations, many circumstances tested his mental poise, but that was equally matched by his recessionary physical equilibrium. He had propensity to suddenly become horizontal during his vertical ambulations. He measured the floor length of a Metro coach by sprawling over it, he paralleled the act of a "Sashtang Pranam" devotee; he also measured the depth of a manhole by falling into it(Vertically). He was also floored by assorted pigs and pie-dogs. No wonder he discovers Delhi, like nobody has done it before, with this down to earth, ear to the ground approach.
He has a knack of turning the turd over to look at the hot and steaming universe underneath, peopled by voice-less power-less strata. As a child, I enjoyed doing that to real cow-dung with a twig. What disturbs you more is his post-mortem doctor's non-judgemental factual observations. Really pithy are his social comments on the abject poverty and shadowy world of people left behind by India Shining. Delhi is like a shiny over-polished apple which has worms inside. Cut it open at your own peril!! But Sam has gone ahead and done it, and has left it for all to see.
No, No, It's not a dark look at Delhi only a 'Gestalt' view.

Capitalism is the dominant dogma today. Socialism or communism have proved to be no match. Capitalism is not without weaknesses - cyclic stagnation-inflation and economic-meltdowns. But is there a better alternative?
At least in poor countries capitalism exploits the full potential of a minority elite class. Even in rich countries, upper and middle class are the only enthusiastic participants in the capitalistic and democratic game. This leaves out a very large poor populace which is indifferent to the polity.
If this large poor populace enthusiastically participates in capitalism - its weaknesses can be overcome. This can come about if we ensure that these people stand to gain in the economy. Can this be done by bringing prices down by playing on larger volumes?
Lets take an example. If price of an electronic equipment (TV or Digital Camera or a digicam) is kept at one-fourth of present day price, the volume would perhaps go up by 8 times. Can profit still be made at this price-volume combine. Perhaps it may also need toning down the astronomical levels of expenses on Salaries, Advertisements or celebrity endorsements. Perhaps standardization of sub-assemblies across the industry may be required. Perhaps the whole industry would have to integrate its supply-chain-management.
If this theory could be worked successfully, economy will be more stable because of large consumer base. It will have higher velocity of money (i.e. same Dollar will change large number (say 1,000,00) of hands productively = as good as one dollar doing the job of 1,000,000 dollars).
Imagine this getting applied to air-travel.
It can be done! This was proved in recent turn-around of Indian Railways. Where instead of increasing the prices in tandem with increasing input costs - a strategy of higher volumes at same price (or even discounts) was tried out successfully. Today Indian railways is poised for an exponential growth - although Economist had earlier written off the organization.
The spirit behind it was empathising with and focusing on large numbered poorer customers.
This is how capitalism was made to to stretch and meet socialism.
Its would be missing the point if this is viewed merely as a turn-around story. I think it is a seminal and paradigm shift.
A new "ism" has been created bridging the socialism and capitalism.

As mentioned in one of my earlier post, commonly held belief that if we don’t meddle with nature, Nature would ensure survival of human race – is not correct. Our universe is a violent and unstable place born in violent Big-Bang and brought up in equally violent events like supernova bursts etc. It’s not natural for life to develop and survive in such a universe.  Life is too fragile and too freak a phenomenon to be infinitely sustainable.
World economy is also a similarly unstable and ruthless phenomenon.

Our understanding of it is rather sketchy. What makes it tick and what makes it go into cycles of depression is hardly understood.  There are theories in this regard but none has predicted the next disaster – which is the real test for any theory to be true.
Globalisation of world economy (The flat world) is forcing the fault lines of world economy to realign, without our knowing it.  The changing political balance of power in post cold-war period is another unsettling force.
Earlier in segregated economies a meltdown in one country did not affect others.  Thus the world as a whole could climb back out of the abyss.
Globalisation and overheating of economy and fast pace of its growth in China etc. could lead to a world-wide economic meltdown. It will be difficult to climb out of such a global economic tsunami.
We should concentrate on understanding the forces shaping the global economy with as great urgency as possible.
What do you think? Please leave a comment.

Is Low labour cost in countries like, India, an advantage or disadvantage?
What are the ill-effects of low labour cost regime, on various classes in society.
Minimum quantum of Food, clothes & roof over-head, required for survival for a human, is approximately, same in poor countries and in richer countries. (I am talking of humans, not of sub-human unfortunates, who have to survive by sleeping on footpaths). But prices for food, clothes and real-estate are much lower in poor countries. Therefore its possible for the bottom layer of society, to survive on low wages, in poor countries.
But the low cost of these survival-minimums, is itself a reflection of low wages, paid to producer of these - the mason, farmer and mill-worker etc. All this is a vicious chain of human oppression. Its a medieval and unequal social contract, between various sections of society - which democracy and market forces are expected to level-up. In final analysis, the low wages are determined by low social concern for human values, than by economics.
In India, due to the caste system in olden times, the lower strata of people did not have the social might, to ask for reasonable prices for their goods and services. Because of poor returns, these classes could not even gather the commercial might, to dictate price.
Human value index of Indian society, would improve, when a shoe shine boy will get equivalent of 1US$, at least, instead of 5 cents, for a shoe polish. Similarly, significant increases in prices of goods and service, from socially and politically weaker section, would be a sure sign of increase in Human Values in the Society. The price of individual human services, should become so high, that these should pinch the buyer. This would reduce demands for such services and thus provide an equilibrium at high-price level. People can shift to more productive professions. The over all cost of labour would go up in the society. The society, will then really become a Human Society. The mediaeval social contract would get replaced by its 21st century version.
Will this push up prices of Indian goods in international market - and have backlash on Indian Economy making higher wages unsustainable.
This is not true.
Lets look at similar chain of oppression, in International Trade between poor countries and Richer ones. There is also a similar mediaeval and unequal, political and economic contracts, between the poor and rich nations.
In next post, we will see that, the economic power and the rate of exchange of foreign currencies, is determined more by military might of nations than its economic performance.