28 October 2008

It's Good Economics - Stupid!

8 December 2007.
The Gujarat election is here. So are the hateful speeches, the rhetoric, the allegations and counter allegations, TV debates, India Decides, India Debates, India Speaks… and all that the TV watching India does its doing with Gujarat as the focal point.

Narendra Modi shot his mouth off on the Sohrabbuddin fake encounter pretty much incriminating his govt. The Prime Minister demonstrated his resolute commitment to constitutional norms by saying that “if the allegation is proved.” action will be taken. Of course a speech beamed into millions of homes is yet to be “proved” to be delivered. But we’re used to non-committal spinelessness by now. A Supreme Court lawyer (Prashant Bhushan) had more courage that the entire Congress put together to go to court with a plea that Modi be booked and arrested for his ranting.

It’s amusing to see and hear Narendra Modi and Manmohan Singh wrestling over who is responsible for Gujarat’s Economic development (Investment terms only). Like two kids fighting over a lollipop crawling with ants on it. No one wants to claim the mantle of who is responsible for issues like justice and societal harmony. That’s just not good economics stupid.

But all this posturing and circus aside, this election is not about BJP Vs Congress. This is about economics Vs civilization - evident when you have a devout looking Muslim man telling a large gathering in a TV studio, rather unselfconsciously that Narendra Modi is good for Gujarat and as a Muslim he has no problem saying it. When this starts recurring, its time to sit up and listen – very carefully. While most secular minded bleeding hearts would gasp, the trishul wielding hysterical Hindutva mob would rub their hands gleefully. The question is - does that Muslim gentleman have a point.

Of course he does, its Economics stupid.

We live in times where there is neither the time, intellectual capacity nor inclination to look at long-term goals from a civilization or societal perspective. Every decision is taken keeping in mind the next quarter. Profitability in quarter 1-2-3-4, mid term policy reviews etc determine what business does and business decides where our Nation should go… sorry, I mean Economy should go. You see I use the word Economy and not Nation or Country because in today’s lexicon they appear interchangeable, and on that parameter Gujarat is rocking. Since its way too complicated to look at issues like justice, inclusiveness in society, democracy reaching the grass roots, empowerment for the marginalized etc. lets simplify it and look at balance sheets, investment coming in and profitability.  That’s all you need to see to decide what is good or bad for a Nation, sorry.. I mean Economy.

After all if 22,000 people gassed to death in Bhopal can be forgotten in exchange of the promise of FDI by Dow Chemicals, 3500 Muslims killed too can be a distant memory that we must move on from so that Gujarat remains the number one investment destination in our Country… sorry, I mean Economy.

Modi is the darling of the corporate world. He has been described by some captains of industry as the best Chief minister Gujarat has ever had. Reliance Industries Limited Chairman Mr. Mukesh Ambani said that “Gujarat under the leadership of Mr. Narendrabhai Modi was committed to contributing to the state’s all round development” at the Global Investors Summit.

That’s the beauty of capital of “wealth creation” and such jargon that sounds nice at seminars but means nothing in the long run. Capital is most unprejudiced, secular, neutral, tolerant, open-minded and stuffed with such liberal virtues. It does not distinguish between just and unjust, it does not distinguish between fair and unfair, it does not distinguish between democratic and autocratic. It only distinguishes between profitable and unprofitable (strictly in monetary, balance sheet terms). So a Naerndra Modi and Manmohan Singh are just the same for capital. For the average reader one would gasp. Whoa!! On one hand a softspoken, gentle prime minister who has been an outstanding, non-offensive fence sitter and on the other the man who oversaw the 2002 pogrom and spouted lines like “hum paanch humare pachees” to describe Muslims. But you see capital does not have that prejudiced eye like lesser mortals like you and I do. Good economics does not discriminate. So while you and I may have a problem with Narendra Modi, a Mukesh Ambani and Ratan Tata don’t. They aren’t representing a society, a nation or even human beings up there, they represent capital and capital sees only profitability.

But sadly history has shown us that a Nation is not only an Economy. It is also an Economy. Fundamentally a nation is a society, a civilization and to decide what is good for society or a civilization, economics cannot be the prime driver. And if it is for the Indian middle class, then don’t cringe when Modi is hailed as the savior of Gujarat and well off Muslim businessman endorse him on prime time TV. 

Its good economics stupid!! Look at the balance sheet, the stock market, the high growth funds, smile and get on with it. 

So the next time any existential issue, issues of governance, social evolution or democracy get too complex and confusing to handle, just dumb it down to economics. It’s the latest language for the lowest common denominator, and its what’s steering this Economy… sorry I meant Country. We’re still a Country right?

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