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Bloodbath on Friday
It’s not about religion |
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Marx out of the closet
India in West Asia
A poet of broken hearts
Elections in US
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Bloodbath on Friday
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the worst-ever single-day crash in the Indian corporate history, the NSE Nifty fell by 12 per cent on Friday. The BSE Sensex too closed 1070 points down at 8701. Adding to the gloom, the RBI left all key rates — the repo rate, the SLR and the CRR — unchanged, disappointing sections of Indian Inc badly in need of ready money. Other major Asian stock markets too witnessed similar bloodshed on fears of recession and lower corporate earnings. Also in a free fall was the rupee, which touched a new low of 50.15 to the dollar. The stock markets opened weak, but after the RBI decision of maintaining the status quo became public, panic gripped investors and traders, who furiously went on a selling spree. The Finance Minister’s pep talk to bolster the stock markets turned out to be a damp squib. To be fair, the RBI or the government cannot be accused of inaction. In fact, the speed with which the apex bank reacted to the emerging situation must have pleasantly surprised many. Instead of waiting for its scheduled policy review meeting on October 24, the RBI intervened swiftly and sharply, cutting the cash reserve ratio by 250 basis points, the SLR by 150 basis points and the repo rate by 100 basis points. The government too has done its bit by raising capitalisation of public sector banks, easing curbs on companies’ external commercial borrowings and allowing FIIs to invest in stocks through the participatory notes. Perhaps, the RBI could have gone further in easing the liquidity crunch. It is clear the central bank has shifted its policy stance from fighting inflation to boosting growth, especially after the poor industrial growth data for August. Understandably, it has revised the GDP growth target to 7.5-8 per cent, which is still commendable, given the difficult global environment. Besides liquidity, the problem is of fear and lack of confidence. As long as negative news keeps coming from the US and elsewhere, all the positive developments here will not have the desired effect. Perhaps, that is why the RBI has chosen to wait and watch. The central bank and the government do not seem to be in panic, whatever the news from Dalal Street.
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It’s not about religion
THE arrest of six persons having links with the hardline Hindu Jagran Manch and the Akhil Bharatiya Vidyarthi Parishad for the September 29 explosions in Malegaon and Modasa in Gujarat gives a lie to the oft-repeated refrain of the Sangh Parivar that all Muslims may not be terrorists, but all terrorists are Muslims. It is a proof, if any was needed at all, that killers have no religion. Putting the same fact another way, they could belong to any religion. Actually, no religion teaches or even condones killings, but most murders are committed in the name of religion. There cannot be a bigger irony. The involvement of Hindu zealots at least means that it has lost control over its more volatile constituents it has been approving of. The Jagran Manch’s activities are a serious reflection on the face of the self-styled keepers of the Hindu conscience. The unravelling of the conspiracy in a professional and impartial manner may bring to light many dark secrets about the way the saffron brigade has been going about “protecting” Hindutva outfits. The least that the Parivar can now do is to dissociate itself from the activities of such elements and condemn it in unequivocal terms. That would have been the first step taken by any responsible organisation but the Parivar tends to have its own spin on everything. It delayed condemning the violence against Christians in Orissa and Karnataka till it was too late. Nor has it shown any remorse over the demolition of Babri Masjid. Initially, the blame for the blasts had been placed at the door of Islamic fundamentalists. It is good that the police has not acted blindly on that perpetual bugbear and has sifted through the camouflage. Now it is the duty of the government to ensure that the investigation against the suspects is carried out in a fair and firm manner without any trace of partisanship. They must be handed down the strictest punishment irrespective of the religion to which they belong. |
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Marx out of the closet
THOSE who live by the market always swear to also perish by it. But when teetering on the brink, free-market ideologues and cheerleaders look for any ghost of a chance that can come to their rescue. Thus, has the spectre of Karl Marx returned to haunt Europe, and the rest of the world, which consigned his seminal works to the dung-heap of history, the end of which was proclaimed by a man who has much to rethink today. No longer are the financial engineers triumphantly talking about mark-to-market value of assets and equities. Instead, they are taking a break to mark pages in volumes written by Marx to see if wisdom of the hind can show a way out of the crisis of capitalism. It is not just the secular worshippers of Mammon who are reiterating the relevance of Marx’s work in these troubled times but also religious figures. Notwithstanding the historical opposition of the Church to Communism, even the Pope has been quoted as having praised Marx’s Das Kapital for its “great analytical quality”. Archibishop of Canterbury Rowan Williams recalled Marx’s analysis of capitalism in “glowing terms” to say: “Marx long ago observed the way in which unbridled capitalism became a kind of mythology, ascribing reality, power and agency to things that had no life in themselves”. The drift of sneering at Marx being reversed by the global meltdown has led to renewed interest in his works, and publishers and booksellers are seeing a sharp and sudden rise in the sales of the work of Marx as well as Engels. Western leaders who once poured scorn on Marx have taken turning pages of his tomes. French President Nicolas Sarkozi and German Finance Minister Peer Steinbruck are reading Marx, maybe for the first time. As the citadels of neo-liberalism are crumbling, it is no longer fashionable to call Marx a “false prophet”. Marx is proving to be profitable not only for those in the business of books. To cash in on the revival of interest in Marx, there is a plan to turn Das Kapital into a movie. Obviously, Marx didn’t move with his times. He was way ahead of it. His problem in life and death has not necessarily been capitalists, but the Marxists themselves whose latter-day ideas and interpretations might embarrass the old man if he had been around. |
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Thought is the blossom; language the bud; action the fruit behind it. — Ralph Waldo Emerson |
Helping them age with grace A society is measured by its attitude towards the weak, the helpless, the children and the aged. Societies that do not take care of the physical needs of this segment of their population have no right to talk about human rights and human dignity. Launching man on the moon has little relevance, if men do not develop sensitivity to the plight of the old and the marginalised. All religious scriptures — the Vedas, Upnishads, the Gita, Ramayan, Jainism, Buddhism, Taoism, the Quran, the Bible and Granth Sahib have called upon their followers to spread and share the love of God and serve their less fortunate brethren. The plight of the aged can be explained in the advancement of science and technology, which, on the one hand, adds longevity to life but demands its price in terms of physical infirmities and mental senility. The rural migration to urban clusters renders human beings lonely and socially alienated. Devoid of a joint family the senior generation suffers handicaps and physical pain that gets aggravated without a touch of social healing Urban dwellings cannot accommodate the seniors and distances make old life miserable in the advancing years. The absence of old age homes and the stigma that they carry with them put the seniors in a dilemma of suffering the tortures of a nucleus, working family or fleeing to religious centres to mitigate the pangs of a wretched existence. Medicare has become prohibitive and even routine check-ups are so exhausting that life looks like a struggle not worth fighting. Pseudo-religious organisations are minting money and the danger of being cheated in the old age renders life too insecure and even unbearable. All this is a day-to-day common experience of life at 65 years or above in India. Even those who plan social security through savings and pension also need old age services like food, medicare, social entertainment and religious fulfilment. Most of these services, including a decent funeral, do not exist in India. Children are becoming increasingly global in pursuit of their new careers. The cruel realities of age and change look stark in the face of both generations. Social security in the era of technology and connectivity has to be searched in a new pattern of living, wherein the seniors can have a “second family career” without a haunting worry of daily food, reasonable shelter, avoidable disease and less painful death. It requires an unprecedented and massive efforts on the part of the state, the society, the family and senior citizens themselves to conquer the incapacities of old age. They have to build a new kind of social order for the seniors without distinctions of caste, class, sex or creed. The leaders of society and religious groups and the enlightened and affluent ones among our seniors have to take the lead and build an effective social network and a huge infrastructure of social security to meet the challenge. Awareness at the state level is too low and some states are paying as low as Rs 35 per month as old age pension. Others pay Rs 100 or 175 which is too paltry a sum to keep the body and the soul together. Our elected representatives should chalk out policies and ensure a decent sum of at least Rs Rs 500 per month as old age pension to all eligibles by 2010. The Indian society has not organised itself to serve venerable elders. Doctors, Industrial houses, social workers, young students, journalists, lawyers, teachers and professionals from all walks of life have to launch regular campaigns and join hands to provide all those facilities. There is enough scope for all sorts of organised help at the village, block, district and state levels. The private and public sectors can have a fruitful partnership in this challenging venture. The fortunate seniors can also follow the models of Bill Gate, Warren Baffet and Bono, who placed their well-earned surplus wealth and influence for the service of the weak and the disadvantaged. They can constitute trusts and missions to which average citizens, including the seniors may make contributions. These corporate bodies may ensure medicare, food guarantee and healthy and decent living for all people in the evening of their lives. Religious leaders and social reformers may join them. The citizens will also have to become conscious of their own social security much before they cross the threshold. The institutions of old age care should train these people to accept “aging with grace”. The old age services should be made available to all seniors by trained professionals in the field. In this age of rapid globalisation, with its premium on youth, people must not forget their obligations to the elderly. Civilisation teaches us the need of a social family system conceived as a unity. Economic and social pressures have fractured this unity today. There is need for healing it and making it whole again.
The writer is the Secretary General, Social Security Foundation, Jaipur |
Greenspan says his world view flawed ALAN
Greenspan, the former chairman of the US Federal Reserve, has dramatically repudiated large parts of his laissez-faire ideology and joined the chorus of voices saying that the credit crisis reveals a need for more regulation of the finance industry. Returning to Capitol Hill to testify before Congress, where lawmakers were once in awe of his intellect and his reputation as a steward of the economy, a bewildered-sounding Mr Greenspan admitted that his view of the world had been flawed. Self-regulation by Wall Street had failed, he said. "Those of us who have looked to the self-interest of lending institutions to protect shareholder’s equity – myself especially – are in a state of shocked disbelief.” And he went on: “I found a flaw in the model that I perceived is the critical functioning structure that defines how the world works. That's precisely the reason I was shocked... I still do not fully understand why it happened and obviously to the extent that I figure where it happened and why, I will change my views. If the facts change, I will change.” The 82-year-old former chairman, who ran the Fed for 18 years under four presidents before retiring in 2006, has seen his reputation torn to shreds by those who accuse him of having contributed to a credit bubble which, on bursting, has brought the world to the brink of economic calamity. The housing market was inflated to unsustainable levels, in part by Mr Greenspan's keeping interest rates too low for too long, his critics argue. And he rejected calls as far back as 2000 to beef up the Fed's regulation of the mortgage lending business in the US, where so-called “sub-prime” borrowers were handed home loans they couldn't afford by predatory lenders who operated without strong oversight. Those sub-prime loans were parceled up into mortgage-backedsecurities and other derivatives, which were sold throughout the world — and which have subsequently collapsed in value as US borrowers defaulted on mortgage payments in record numbers and as house prices slumped. The explosion of these derivatives markets was based on flawed assumptions, by traders and their counterparties, about the levels of risk that they were taking, Mr Greenspan said. “The whole intellectual edifice collapsed in the summer of last year because the data inputted into the risk management models generally covered only the past two decades, a period of euphoria.” Although the former Fed chairman said he had warned as far back as 2005 that markets might be underpricing risk, his testimony was a major departure — following many months in which Mr Greenspan has declined to identify mistakes he made during his tenure and has insisted that he could have done little to prick a bubble in the credit markets in any case. He called for better oversight of the financial markets, and in particular those issuing mortgage-backed securities and other derivatives. “As much as I would prefer it otherwise, in this financial environment I see no choice but to require that all securitisers retain a meaningful part of the securities they issue,” he said. |
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