Archive for the ‘world affairs’ Category

Capitalism: Couple of points

Monday, December 31st, 2007

Imagine a situation where there is a wealthy businessman, and he has an excellent B Plan to make more money. All he does is, opens a mall in few villages. Offer low prices for an extended period of time enough to drive the mom and pop stores out of business. He makes loss over the period but as he is wealthy, he is fine. As he monopolizes the villages. He raises the prices to values higher then before. Is this legal? Yes. Ethical? Thats a different debate. Should the govt protect the small time investors and prevent this situation? Obviously. But How?  Please comment on that after reading the rest of the post.

Just note few of the things which make the situation tricky. The wealthy businessman are few in number. So the competition is that much less. Even if there are a little too many for comfort, it makes economic sense for all of them not to compete against one another. There are better off looking at different villages as market or selling different product. As the govt is obligated to protect the interest of all its citizens, what laws should be implemented to prevent rich business from growing richer at expense of village folks?

All the controversy and wal-mart-bashing that you see is because of their tactics. In US, which is run on the ultimate form of capitalism, if you observe, huge chains like sears, circuit city, walmart, target, academy sports are present everywhere. But single shop owners are not present in that large a number.

During our fortnightly lab meetings, another issue came up. It was possible that any of there stores, sometime in future, record the stuff a person purchases, and charge people accordingly. More frequently you buy a product, more you are willing to pay for the it, and hence by a capitalist principle, more they are gonna charge you for it. As scary as it sounds, it not something to be scared about (From my limited knowledge of economics, correct me if i am wrong). Price rises for everyone. And hence the inflation. And so you currency will lose its value. Consequently, your employer will raise your salary. No harm done!

If you are wondering how is the previous case different from this one, remember that the in the previous case, only a part of the population is affected. So raise in inflation is not significant. And so only the village folks get poorer. We need a solution in capitalist domain. If we venture into socialist/communist form of governance we do have some solution. But, get you creativity going in solving this problem in capitalist domain.

I had put this on discussion at the famed :P bangalore gang (”bang-gang” for short). Here are some of the points that came up.

A study has shown that  “kiranas” can  coexist with big time retailers. But I ma not sure if it talks about India alone or  all over the world

Few solutions:

One of the  plausible solutions is moving towards socialist form of governance specifically for food grains, cereals, oil and basic amenities is a govt controlled efficient Public Distribution System. India had a decent network of Fair Price Shops (nyaya bele anagadi in Kannada) or Ration Depots all over the country. As the Govt gave up it’s exclusive procurement rights, the system died out. Govt no longer has access to sufficient food grains. The private companies are quick to approach the farmers and get the produce at a lesser cost and once they have it, they can import/export or process it depending on the market needs. This can lead to hoarding. But of course, govt interferenace has its drawbacks of corruption among others.

Another solution that was tried (targeted at walmart) was to restrict the area of shopping area to a certain value. In India too such a law was tried aimed at stopping tata-birlas from running more business. But it was circumvented by opening business under proxy names.

Charge large taxes on goods sold at higher rates elsewhere. This again is some kind of regulation which might not work too well owing to transportation cost etc.

Capitalism on Waitresses and Waiters:

Tipping culture exists in US because they are paid less than minimum wage. They are paid less than minimum wage because it is a tipped job! When waitress or waiters earn less then minimum wage even after tips they dont report it because it becomes an excuse for the employer to call them incompetent and fire them. More on that here (via desipundit).

I am a capitalist too and love the idea of free market but it is quite cruel at its fullest level. Do comment on possible solutions to the problem I described above.

Happy new years to all my readers!

Photographs that Shook the World

Wednesday, August 30th, 2006

This has been one of my most difficult posts to write because of the gore image the photographs portray. I have been eager to write this post for a quite a long time. A couple of hours of googling and wiki-ing was good enough to collect all the information I needed. Almost all the pictures here can easily convince you that a picture paints a thousand words.

The photograph above, by Steve McCurry, can easily be recognised as it was much hyped by National Geographic Channel. The haunting green eyes of the girl haunted the whole world since the time it appeared on National Geographic Magazine cover in 1985. It is the first picture that come to our minds when talking about refugees. Torn apart by civil war, the plight of refugees was brought forward to the rest of the world through this very photograph. More info. here

The Pulitzer prize winning photograph above was taken by South African photographer Kevin Carter. The shocking picture of a sever year old girl ‘resting’ for a while before going to the refugee shelter for food being stalked by a plump vulture brought attention to the gravity of Sudan’s famine in 1993-94. The photographer managed to shoo the vulture away, but no one knows what happened to this little girl. Burdened by the sight of so many sufferings in Africa, the photographer committed suicide 3 months after the photograph was shot. In his note, he says “I am depressed … without phone … money for rent … money for child support … money for debts … money!!! … I am haunted by the vivid memories of killings & corpses & anger & pain … of starving or wounded children, of trigger-happy madmen, often police, of killer executioners…I have gone to join Ken if I am that lucky.” More info. here

This pic. is in the forefront of all anti-war campaigns. This was June 1972 when a South Vietnamese plane “mistakenly” dropped its flaming napalm on South Vietnamese This girl was also found and she is fine with image being used to discourage war. Unfortunately no one’s listening.

South Vietnamese National Police Chief Brig. Gen. Nguyen Ngoc Loan executes a Viet Cong officer with a shot to the head, one of the most chilling images of the Vietnam War. Photographer Eddie Adams, who won a Pulitzer Prize for this photograph, said the execution was justified, because the Viet Cong officer had killed eight South Vietnamese. The furor created by this 1968 image destroyed Loan’s life. He fled South Vietnam in 1975, the year the communists overran the country, and moved to Virginia, where he opened a restaurant. He died in 1998 at age 67. Loan ‘was a hero,’ Adams said when he died. ‘America should be crying. I just hate to see him go this way, without people knowing anything about him.’ (Source)

When LIFE ran this stark, haunting photograph of a beach in Papua New Guinea on September 20, 1943, the magazine felt compelled to ask in an adjacent full-page editorial, “Why print this picture, anyway, of three American boys dead upon an alien shore?” Among the reasons: “words are never enough . . . words do not exist to make us see, or know, or feel what it is like, what actually happens.” But there was more to it than that; LIFE was actually publishing in concert with government wishes. President Franklin D. Roosevelt was convinced that Americans had grown too complacent about the war, so he lifted the ban on images depicting U.S. casualties. Strock’s picture and others that followed in LIFE and elsewhere had the desired effect. The public, shocked by combat’s grim realities, was instilled with yet greater resolve to win the war. (Source)

LIFE photographer Margaret Bourke-White was with Gen. George Patton’s troops when they liberated the Buchenwald concentration camp. Forty-three thousand people had been murdered there. Patton was so outraged he ordered his men to march German civilians through the camp so they could see with their own eyes what their nation had wrought. (Source)

Finally a glimmer of hope. This is Tiananmen Square 1989. A hunger strike by 3,000 students in Beijing had grown to a protest of more than a million as the injustices of a nation cried for reform. For seven weeks the people and the People’s Republic, in the person of soldiers dispatched by a riven Communist Party, warily eyed each other as the world waited. When this young man simply would not move, standing with his meager bags before a line of tanks, a hero was born. A second hero emerged as the tank driver refused to crush the man, and instead drove his killing machine around him. Soon this dream would end, and blood would fill Tiananmen. But this picture had shown a billion Chinese that there is hope. That’s the power of ONE. (Source)

I really don’t know what effect Live8 concert had on African Debts. But I do know that the cries of Darfur is falling on deaf ears because of lack of oil in that region. UNO has declined to call it a genocide. Perhaps we dont know how many deaths will take till they know that too many people have died. I hope it will not take a disturbing photograph like above to divert the world’s attention to Darfur.

Resposibilities..forgotten

Tuesday, March 1st, 2005

In the material world, any economic decision taken, the environment ends up being the victim. Ecology is seldom a concern when it comes to ‘development’. In one of my previous blogs, you may have read about the course I am doing called ‘environmental and resource economics’. Some of the facts here are straight from the course content.

I don’t know how many of you know about endosulfan poisoning in Kerala, here’s what happened there. Have a look at the link http://indiatogether.org/2004/jan/env-endosulf.htm . Kerala govt. had ordered aerial spraying of endosulfan pesticides in mountainous terrains of Kasargod district. Unknown even to scientists that drastic consequences were inevitable in 20 years, the program was welcomed by every segment of the population. Villagers looked at this as signs of progress. Coupled by biological food chain and the natural soil movement, endosulfan tracked its way into human metabolism. People were taken aback by the extent of damage it caused. Economists were reluctant to stop the aerial spraying (it was started in 70s; effect was seen in the late 90s). The damages included physical and mental deformities, diseases of central nervous system and many more. After a long fight, Kerala govt. did impose a ban on spraying but all this was in vain. A private agency claimed endosulfan wasn’t the cause and successfully lifted this ban. The people continue to suffer even today. Please look at these links too.
http://puggy.symonds.net/pipermail/india-ej/2003-October/001039.html

http://www.makingindiagreen.org/pr3.htm

Many of you would know about the Minamata disease caused by slow mercury poisoning. This link will provide the necessary information. http://rarediseases.about.com/od/rarediseases1/a/102304.htm Mercury was disposed off into the sea by Japanese industries. As in case of endosulfan, it penetrated into the human system and caused havoc. The symptoms here included (I quote from the web site) “Individuals began to have numbness in their limbs and lips. Some had difficulty hearing or seeing. Others developed shaking (tremors) in their arms and legs, difficulty walking, even brain damage. Others seemed to be going crazy, shouting uncontrollably.” Thankfully, Japanese are more sensible (or responsible) and took the necessary action.

Any decision that favours natural environment is taken only after much hue and cry. All of us are aware of the decision by UP govt. to close down industries around Taj Mahal. This came after persistent warning from experts and only after the damages on Taj Mahal were visible clearly. Why is it that Delhi buses were forced to CNG only after the city became infamous for being fourth most polluted city in the world? Even today more than 20 year old vehicles are running on roads. Victims of Bhopal Gas tragedy are yet to receive their compensation. Country like USA, which consumes maximum share of resources, and still hungry for more, refuses to sign the Kyoto Protocol!

Frankly, I am quite impressed by India’s ambitious project on interlinking of rivers. But I have a strong concern for the ecological impact it can have. It is a simple rule that when you are unsure about the consequences of an action, do not execute it. I wonder how many have actually thought of its influence on natural river flow. Can it end up drying some of the bigger rivers in the country? In every lecture on this project, engineering challenges are dealt with. But environment is forgotten practically every time.

Here’s an encouraging fact, eastern Himalayas and Western Ghats are included in 18 biodiversity hot spots of the world. Sadly, I guess, these are two of the very very few natural pockets of forest reserves we have.

With this blog I wanted to bring the plight of Kerala’s people to attention. I hope concerned authorities take the appropriate action