Friday, October 3, 2008

Free Markets are Dead! Long Live the Free Markets!!!

Something inside me died today as I saw the news item on the approval of the $700 billion bailout package in the US Senate on TV.

Most of my adult life I have been a strong believer in the power of free markets with minimal regulation. When I was growing up, I lambasted India's socialist inclinations, and the bias towards self-reliance as opposed to doing what we were good at. I argued passionately with the socialists, and sold them the capitalist dreams - often successfully. Intellectually, the capitalist free-market always made sense - the power and magic of the invisible hand was intoxicating. I am not sure anymore. Looks like the market needs some help from the socialists - USA, the beacon of free markets, is taking a path that betrays the very foundations of its economic philosophy.

Someone give me some oxygen, I am suffocating!

The Belligerent Indian

What we had known for a couple of months is now official - the Tatas are moving out of Singur. Ratan Tata was part-statesman, part-boxer in the press conference he had called today to announce the move of the Nano out of the state of West-Bengal. He took the gloves off as he slammed Mamta Bannerjee, the woman who single-handedly managed to drive this landmark project out of the state. Her perspective is that some farmers are being short-changed in the land acquisition process, and that the individual cannot be sacrificed at the altar of the greater-good.

1300 kilometers away, Raj Thackeray and his men are threatening to drive people of north-indian origin out of the state of Maharashtra. They have used several strong arm methods to make their point, and some innocent people have died in the process. Beating up people, vandalizing shops and offices, and destroying public property are common methods used by these folks, while the state apparatus looks on helplessly, lest they should be perceived to be anti-Maharashtrian. The perspective of Raj's men is that people from the North are taking over the state of Maharashtra, while ignoring and insulting Marathi culture and values.

Although you and I may choose to agree or disagree with the perspectives of Mamta and Raj, there is no doubt that what worries most of us is the methods they use. The fact that numerous groups choose to use violence and intimidation at the drop of hat to make their point is extremely unfortunate to say the least. Almost everyday I see a news report that talks about this type of behaviour.

India is shining alright - our economic growth and the nuclear deal are testimony to that. However the belligerent Indian represents one of the dark and dangerous sides of this new India.