Corporate Governance : Save Modern Animal Spirit.

Revival of Animal Spirit in Governance !

“Animal Spirit”, a new poster is flooding the print and electronic media today while stories on good governance are getting dressed up. This is not an overnight discovery. Capitalist system today is in a panic mode. We don’t need a laboratory with skills to analyse or to explain how crony capitalism is the killer of E.E.- Ethical Entrepreneurship. It grabs out the virtuous animal spirits of an enterprise to show case it as a necessary evil. This is the `holy spirit` since Stone Age which the American economists, the Indian prime minister, CEOs and Ministers like Montik Singh Ahluwalia ,all are so fond of talking about. Many politicians are expressing their patent `helpless spirit`. People are left to fight their own war of survival like a `gladiator`. Animal Spirit promotion helps to hide the real challenges and sufferings.

What does the term `animal spirit` stands for ?

Let us pick up the first hand compulsions. The wild character behind the animal spirit needs identification. It shall be great to revisit the rule of the Jungle and to understand the spirit behind.

No one including any Jungle drum beater formally nominates and crowns the Lion as King of the Jungle. He earns the position of a King through his calibre, strength & attitude. When a lion in a Jungle runs to kill- he runs for food. When a deer runs he runs for life- to protect his daily work. It is only the Lion who in Jungle knows the hidden team work that helps him survive. According to discovery channel a lion does not kill more then 32 times in a year unlike animal greed and animal spirit of few that kills the rest. Each day every hour, each minute and every second the game is on.

Guide to Modern Animal spirits:
In Africa-India many are seen walking miles. We live in an unexplained world where poor people walk miles to earn food and rich people walk miles to digest food. Greed does the animal trick : It trains, it protects and it generates wealth for few using more at a neck breaking speed. It cheats the human spirit which desires the team participation but is kept slow for a better living and for a respectful survival. Pizza reaches home faster than the Police and the Ambulance.

Ancient respect for Animal Spirits :

Witch doctors and magicians use this term since ancient times, to dictate powers. To monitor business control over humanity. Term was first coined by John Maynard Keynes in one of his economics books, “The General Theory of Employment, Interest and Money”. The term “animal spirits” is used to describe human emotion that drives consumer confidence and not to fight and overcome spirits. According to Keynes, `animal spirits` also generate human trust. This was true in 1936. Animal sovereignty it appears was born in response to growing conflicts in unfair wealth distribution among people during the great Depression of 1930s.Relation between a man-machine, production- its means and its ends all have taken a sea change since then. Information and IT is the new game changer. We live in a Global village where Rice is one dollar per kg or 5000 K or Rs.50/- per kg but the Sim Card for a mobile is free. Today the humanity of 99 % is standing up against the animal spirit of 1 %. The demand is for human Rights, better wealth distribution, better share,work regulations and basic minimum survival kit is evident.

Resurgence of interest in the idea of animal spirits in recent years of crisis is evident. Several books and articles have been published on this topic. Keynes believed that animal spirits were necessary to motivate people to take positive action.In the sports arena it is transformed as the `killer spirit` charged up for a win.

Reform with an animal spirit not only succeeded in Africa but prospered in India for two decades. Its success was visible. It was also shared and cheered by a wide section of our people. Why has the picture then changed-dirty in India ? Why reforms are De-forming now ? Could it be just a consequence of the global commodity boom fired by easy investments flooding the larger Western economies after the 2008 financial crisis? It has created speedy windfall-billionaires all over the world, including in India: the Reddy brothers of Bellary are one example.

To go back to our original query, the economy stands shattered. Markets have flip flopped not because Global Governance is pro- or anti-business, but because it has been so hypocritical about animal spirit and about private economy with private and hidden double rules.

Let’s look at some of the new corporate class the real hidden masters instead of the usual suspect, the government. Animal Sprit unlike the modest human spirit of 99 % is more demanding. Animal spirit needs favours, demands elite care, twisting of laws, weak regulations, no civilized competition, ownership of natural resources at a throw away prices and a  freedom to steal capital to put in speculative market for a fake growth. Many of these spirits quickly get listed on the stock markets in boom times, and kept leveraging and manipulating their balance sheets as if the rush hour will never stop.

Animal Spirit also provides a permanent do-nothing excuse of the Global Governance Class. Investors spend their time at golf course sipping bear. Football a team game seldom suits their temperament. Worst of all, it is a fast ruining public opinion for businessmen in India; as it confirms the worst old fears of all of them being the hidden spirit controllers: controlling the destiny of millions with hidden profits in tax havens.

The big collateral learners in the animal spirit process are the `human spirit` campaigners as the strugglers. Hope is the magic oxygen behind the 99 % that includes some middle level Business houses. Human Spirit slogers are forced to be called as lazy, suckers and robber barons as we see in Greece crisis. We live in system where capital is worshipped as a God but human capital involved is treated as dirt.

A broken link in the system needs to be understood, re-connected and corrected fast. A global village disconnect: We see a clear disconnect among powerful ruling elite and the 99%.Majoirty wish to have a better civilized systems with participation and with fair justice. Animal spirit need to sacrifice more. It needs to be accommodative for the global governance world order by allowing flow of more money in more pockets. Growth in the real market can only help to save the `animal spirit` from getting extinct or thrown out of the economic game of survival.

Lion and the Tiger in Indian Jungles are vanishing fast today in spite of Government best efforts to invest in wild life and care for animals.

Protection of animal spirit may be a necessary evil but not at the cost of humans.

Released in Public Interest as original text by :

Rakesh Manchanda,
5,Mutankaclose,Roads Park,
Lusaka-Republic of Zambia.
Mobile:0978278371.

Indian Money always grows on the trees !

Does Money grows on trees and not in Share Bazaar controlled by FDI ?

Prime Minister forceful, long and a `rarest` of a rare address to the Nation on 21^st.Sept-2012, hailed by a section of media need to be considered as a historical watershed in Indian politics.

The speech makes a clear business and political intention of the PM. It gives an independent damage control path triggered by Peoples Protest and anger against Price Rise in India. Let us not forget the India`s work stood paralysed by a National strike a day before called by the traders, government allies and opposition in protest against the backdoor entry of FDI in retail.

Sample few remarks from the Hon.PM speech

A phrase from the speech says :“Money does not grow on trees.”

A common man suffering from economic pains shall disagree with this folk remark. Tree who takes the poison called carbon di oxide and converts it into oxygen in a hidden relationship is a survival for all. What common man knows is the shade, wood, flowers, leaves and fruits from the value addition of the tree makes it a `Giving Tree`.

Humble reasons of the simple disagreement with PM phrase are not difficult to analyse.

Money does not grow on trees ?

Is this a part of PM political fire fighting speech to keep the majority helpless in search of false hope ?

A seed while growing makes no sound but while falling make a huge noise. Distribution of wealth is noisy while creation is always quiet. Honourable law makers and enforcement agencies needs to realize that during wheel of production all fingers are equal while during wheel of consumption and distribution the fingers of the same hand become unequal. Sample a more clear example from the roots of the real production cycle.

Manufacturing of a cotton T-shirt in a textile mill takes few days to get ready and to get sold. Transformation of one planted cotton seed to generate 100 more seeds via fruit takes a full harvest season of almost 100 days. Policy makers in India need to search solutions in favour of majority because 70% of the farmers are engaged in agriculture. Speed of one cotton T-shirt production involves the source of one seed multiplying to say 100 seeds in a normal wheel of production. But where is the fair wealth distribution mechanism?

Few handful thieves at times in broad daylight want to steal the national fruits (wealth) for the exclusive growth of one
percent privileged. While stealing the fruit when caught they shout that fruit is bad or they are taking it to generate more jobs. Transformation of life from seed to fruit remains the collective responsibility. To convert a `seed to fruit` a national team needs to work with a clear role. Here a law is required to shape up team work. To distribute the fruit & inclusive wealth again an effective law is required. Strong effective regulation of laws monitoring a `work tree` can help justify a fair wealth distribution of the national fruits.

Success always comes when preparation meets opportunity. If there is a fault in the basic porous design of the state format with no regulations the crisis shall bound to come.

In India there is a presence of strong laws but there is no strong application of these laws at ground zero. All is not well in the daily survival war of the common man with his squeezed pocket and no guarantee of justice.

Money always grows on `trees`, Mr.Prime Minister.

Money shall never grow on `fake trees` called share bazaar, controlled by casino laws of gambling.

National resources are been sold each day as if they are fruits hanging on a tree.

Money never grows by unfair allocation of 2G spectrum, KG Basin gates, Coal mining gates protected by ministers in India.

PM says : We need to bring in Companies of High Standards.

Thanks to the Indian Agriculture activist Mr. Divinder Sharma and his findings on the `less and loose` character and the standard of vidayshi( foreigner) company which is covered well by alert media.

Allow me put it straight from one of my recent publication in Zambia Daily mail :

Profit with turnover of Indian retail market without Wal Mart is estimated to be around $400 billion. Employment generation in the conventional Indian retail system: More than 12 million retailers employ 40 million people with bare footed `chotus` as the delivery men.

Wal-Mart’s turnover is also around $420 billion, but it employs approximately only 2.1 million people which is twenty times less then the Indian Retail market.

If Wal-Mart with its aggressive `animal spirit` can achieve the same turnover of the present Indian retail market with twenty times less workforce employed by the Indian retail sector, how do our PM expects big foreign retail to create more jobs?

Here in Zambia the Wal Mart operates with 51% share but under a different name. Why Wal Mart compromises with a different name if its known brand, its fame and operations are so acceptable?

Score card of Desi (Indigenous) squeeze in Indian Industry ?

India`s economic growth story without Maruti is incomplete. Users in India takes a pride in its shinning,value for money and the most economical indigenous car produced in India.

Maruti car in India`s economy growth story takes a pride place in its shinning and most economical indigenous car production.

Maruti accepted trajectory in the economic growth of India and job creation story stand unmatched. Challenge and conflict of interest starts when the state policy of any nation driven by American Capitalist model fails to distribute the industrial wealth generation.

Recent Maruti unrest and its closure unmasked the unfair wealth distribution limitations in shinning Indian story. We saw a senior manager in this car production unit of Manesar plant burned alive and killed during protest. Result ? More then 500 workers lost their jobs in this historic inhouse industrial action and dispute. State government in India was found helpless caught looking down with `no action` as a spectator.

Regulation Law for better human capital treatment in Indian industry is a must.

It is very shocking to see that corporate government nexus instead of improving the infrastructure of roads, hospitals, schools around the coal industry and instead ensuring more money in the pockets of more people/workers is cheating and stealing the profits of Indian resources. This is done by reducing the permanent work force to half and then increasing the casual contract labours with slave conditions or with forcing no work contract at all.

In India a regulation of law for equal treatment (if not more respect) for human capital is must. Has the government learned no regulatory framework lessons from the Maruti crisis and the shadow boxing (Nora kushti ) on FDI ?

Hidden masters are corporate and not the politicians. Corporate do not believe in any law for fair wealth distribution. Their booty and profit should grow up to 2000 % in five years as we all see in Maruti  industrial crisis. Investors are unhappy if workers demands even 5% rise in their pocket savings each year. What the CEOs miss is the fact that if more money goes in number of pockets the market can survive and goods get sold.

Money always grows on `work trees`. It needs a collective nursing of the tree by various stakeholders. Distribution requires collective monitoring by various stakeholders and alert regulation of laws by Governments. Fruits should not be sold without a proper evaluation of the market.

Released in Public Interest as original text by : 

Rakesh Manchanda,

5,Mutankaclose,Roads Park,

Lusaka-Republic of Zambia.

Mobile:0978278371.

FDI-Debt crisis in India : Zambian take away !

Zambia Daily Mail has been running my guest column  for sometime publishing articles on different local and international themes. One of these articles, lately, showed as to how a debt in a country like Greece shook the entire nation and even its ancient culture. It is a tragedy that people in any country are hardly consulted before the governments borrow or take loans to slip into debts. Neither have the governments the world over evolved mechanism for this. Today, the loan monster in India is assured to be demolished by American driven 51% Foreign Direct Investments(FDI).National Strike and People`s anger stops India work on 20th. Sept-2012.
Investments in industry, agriculture and services sectors are essential for growth of the country’s economy, Global Governance and for job creation. Foreign Direct Investment (FDI) is one such tap with effective flow in Zambia, Africa or India.This is an essential holistic desire. No one can deny it. What we fail to realise is the fact that FDI does not mean a magic wand to bring happiness to all as it has its own hidden pound of flesh hooked up in advance.
FDI, communication, technology and transport etc. are progressive engines of a same chain-a chain of a country`s survival and progress.FDI is only the driver of the economy, not a player but a new driver with a brand new battery of employees as a support system. Drivers may speed up the accelerator, may reach the target in time at a lesser cost initially but drivers do not cure the future survival in the market alone. Industry and Agriculture are the major players and stakeholders together with technology and science. Finally it is the squeezed pocket of the majority people that decides the future of any services in the market.
FDI is only a market driver having no power to pay off country’s loans or generate more jobs.
Let us stand to be understood first. New foreign retail stores and food chains are going to be the `new` drivers of the economy without any skills to generate more wealth. Drivers are not the `sole breadwinning champions` of the market -we must never forget. How can a bare footed delivery boy from a rural retail shop become a tie wearing Wal Mart salesman ? Rural consumers in America say they have to travel not less then 30 kms to big Marts as the small retails have been wiped off. Wal mart in future may replace the old network of services in retail by their new network and new battery of employees but FDI in retail can never increase the purchasing power of people and provide more jobs to repair sick economy.
51% FDI means a full control to foreigners.
Wal-Mart in Zambia operates indirectly via South Africa. Wal mart bought 51 percent of Johannesburg-based Massmart to help boost sales internationally by hiding itself. This South African company operates `Game stores` in Zambia.There was a lot of lobbying last year Mrs Hillary Clinton visited Zambia on 10th. June-2011 to promote Wall mart interests. A country in the past which was proud to reject the entry of GM foods in shape of US AID during drought caved in to America Pressure.
For better insights and some Zambian take-aways, let us see the current ongoing political deadlock in India. Crisis is triggered by ‘war-like’ situation in India due to American driven FDI backdoor entry with 51% share, price rise, loans and policy mismanagement.
“Bite the bullet and go down fighting courageously”-is the sudden war cry of Indian Prime Minister. Is this a war with bullets to ensure better Governance ? Or is this a war to protect Corporate and bail out American economy in India ? Our `honest` PM is demanding more sacrifices to counter new price rise. He safeguards FDI backdoor entry and asks the nation to be prepared. It is the magic of pressure of 99 % or majority people fighting for better life and dignified daily works that forces this split in the Union Government and six ministers are going to resign. See the importance of `no participation` and `no consultancy mechanism`.
Sting of the bomb shells can be heard in the middle class Indian family kitchens. A housewife on screen is heard crying “ How can I manage a full two month with only one cooking gas cylinder at a double cost ?” The alarming price of each cooking gas cylinders shall be Rs.800(approx.75,000 K). On one hand Government declares war against people by rising prices and on the other hand it wishes to hoodwink and put FDI as the `Big Bang` terminator. A `magical medicine` for the national debts and loans ! All this is done under America Pressure to bail out their loans and unemployment.
Let us bite the bullets as desired by our politicians one by one !
Price rise bullet :
Endless price rise in Petrol, milk vegetables,lintels , cooking gas, railway tickets, electricity and water bills was already finding no resonance with people. With no increase in salary, less wages and profit common man feels cheated. Government argument is that subsidy to middle class in line with International prices must stop. This means the 14kg. Cooking gas cylinder must cost double in a year Rs.800/- (approx.75000/-K). Does this mean that poor with no access to loans and electric power should continue to use kerosene and wood for cooking ?

Recently, in November 2011, we saw, on the Indian news channels, the Punjab farmers blocking roads and showing protest by dumping their unsold potato stocks. Farmers’ argument was: why the selling price of potatoes, in villages, still remained rupee one per kilo (approx.90 K)? Then we saw Congress President Sonia Gandhi’s son Rahul Gandhi with a potato in his hand promoting FDI as the magic solution for the future. Interesting debates in Parliament took place after FDI backdoor attempt hung Parliament with no work for ten days last time. This time, Parliament hung due to the coal mining scandal or Coalgate. Last time, the FDI issue was somehow closed by the then Finance Minster Pranab Mukherjee because the government got no support from its allies and it was decided that 51% FDI would not be allowed without a proper discussion in Parliament. All this debate among 1% took place but the consent of the common man with shrinking pockets was still missing. Without increasing the pocket power or living standard of commons, this backdoor action of FDI entry on retail network replacement is a senseless dream.

India needs a more balanced agriculture-industrial policy instead of FDI in retail market to stop suicides and agitations of farmers involving unlimited greed for selling land to developers and making selective1% more powerful.
Both Government and Opposition barring few left leaning regional parties are silent on more and more subsidy to few favoured Corporates like KG-Basin Reliance in India who control the source of diesel, petrol and gas. It is not difficult to understand politicians and their disconnect with the market and with loans. The government is taking pride to display their ‘no controls’ on the market prices? Ministers say that price rise is natural and is beyond their control. Print and electronic media are full of false stories of ‘courage’ where FDI entry = Loan waiver.
So whose loan shall FDI terminate?
Blind Loan Model of the economy in support of FDI forces one to see a huge disconnect. Allow me to remember my childhood in early 1980s. My parents refused to send me to an expensive three-day school tour outside Dehradun, a small city in the North India. The logic given by my father was clear: “We cannot take loan to meet your luxury”. No Indian middle-class takes loan to meet their luxury expenses. The poor class per day income of Rs.26 (47 cents) in villages and Rs.32 (58 cents) in cities keeps majority Indians out of loan category – the fact that you cannot buy a single meal with this kind of money, not to talk of the livelihood categories!
Loan driven American government now with 9% unemployment is still better in house Governance at the cost of rest of the World. American Mayor in small towns calls a weekly meeting in Town Hall. People are asked to audit town expenses and approve whether to install fountains in the village park or not. Whether to allow Wal Mart Retail Food chain to open its stores in American cities or not? This is decided by American citizens. Is it not true that American Citizens do not allow Business Houses to run private Banks ? So participation of people decides in America unlike in India.
Here in India or say in Africa only Finance Minster or PM decides whether to allow Wal Mart Retail Food Chain or not. Ministers must stop shedding Crocodile tears and stop painting FDI as a future loan waiver. Why should FDI- a shinning new driver of economy- be appointed by America as our future loan terminator?
Loan jargon for young unemployed Africa -it supports whom?

Why America Government wants to remove its dirty unemployment mess at the cost of Africa-India economy ? Why US is advocating Wal Mart entry in India ? Success of Walmart in India means oxygen for the dying economy of America. US Corporate who are worlds biggest & worst borrowers/loan defaulters are living not only on borrowed money but also on borrowed time. America makes the currency of other countries weak by endless, limitless and senseless global borrowing. If the cost of Investment of a common man say for example in Africa for a study in a university is suddenly up by 15% in the last 15 days it means that America has borrowed 15% more wealth from pockets of all Global citizens. There is no guarantee for recovery of this 15 % loan by America as this is as good as a borrowing on a non refundable basis. For money, investment and Rules there is no Global equal playing field.In India Corporate driven by well wishes and `intelligent` CEOs continue to advise middle level investors to hide money in Tax Heavens Gold and in Temples. No one is bothered to increase the purchasing power of the poor as `consumers` in the Retail Market for the long term survival of Rich. There is a long overdue need to have a more equal global participatory model from remote villages to the World markets.
Why Foreign Investments is allowed to enter retail and farming and not Indian Investors who have lot of hidden dirty money waiting to be put in the market ? This again is not a mystery.
The fear of multinational retail chains forecasting lower prices to consumers and higher prices to farmers is a false trick. This raises a number of questions. Is FDI indeed a disadvantage? Do we want to ensure higher margins to traders? What about the horror tales of exploitative and non-value adding middle-men in different tested countries? The forecast of eventual `squeezing’ of the consumer is equally bizarre. If there is more competition, prices will drop ! How, then, would FDI in retail favour monopolistic pricing? In any event, if large-scale retailing does squeeze the consumer, is it that an indigenous squeeze is more bearable than a foreign bear-hug? One section of opinion in the past was that there is plenty of money for investment in retail and, hence, foreign participation is unnecessary. This section is powerful but is silent now due to unending recession. If this is true why is the huge opportunity in food processing and packaged branded low-cost edible products still unexploited? The cold chain of refrigeration and the logistics support required to make fortunes for farmers out of fruit and vegetables demand heavy investments. If dirty money in domestic market is in plenty, this avenue should have been explored indigenously by now. When US economy is in problem why this love for FDI to help revive Americans more and African-Indians less ?
Let us face the Employment bullet in India :
The Indian retail market is estimated to be around $400 billion with more than 12 million retailers employing 40 million people. Ironically, Wal-Mart’s turnover is also around $420 billion, but it employs only 2.1 million people. If Wal-Mart can achieve the same turnover with hardly a fraction of the workforce employed by the Indian retail sector, how do we expect big retail to create jobs? It is the Indian retail sector which is a much bigger employer, and big retail will only destroy millions of livelihoods.

What India-Africa needs is systemic reforms in favour of 99% people and their pockets and not in favour of 1% supported by Multinationals and their hidden pockets in Tax Havens.Income and Purchasing power of majority needs to be repaired first.
How governments sustains to save people by stopping this `short cut` `slap` kitchen politics of FDI and Prise rise needs to be seen at ground zero.
Written in Public Interest by :
Rakesh Manchanda,
5,Mutankaclose,Roads Park,
Lusaka-Republic of Zambia.
Mobile:0978278371.
Note for more similar articles please browse and read few of my last year works via google :
Budget-Who shall benefit in 2012-13 ?
Price Rise, Crocodile Tears, Loans & Quit India Movement.
Rahul Gandhi applies old trick of a potatoe squeeze & support in villages.
Govt must stop the governance of protecting one percent.
America-India Support System- Is this a Tom & Jerry Comic Show ?
American begger in Delhi.
Correction in global governance deficit as intiated in UN by Indian PM.

Why FDI: A suited booted new driver of market is allowed to be India`s loan terminator?

FDI is only a `market driver` having no power to pay off loans.

Or

FDI-wearing a loan terminator mask enters India from backdoor !

(Stop this `short cut` `slap` kitchen politics of Prise rise-FDI.)

By : Rakesh Manchanda.

Is this a war with bullets to ensure better Governance ? Or is this a war to protect Corporate and bail out American economy in India ? Animal spirit , applause and cheer in share baazar is clear and gives a better story. Our `honest` PM is demanding more sacrifices to counter new price rise. He safeguards FDI backdoor entry and asks the nation to be prepared. “Bite the bullet and go down fighting courageously”-is the sudden war cry of our PM. Bomb shells can be heard in the middle class kitchens. A housewife on TV screen is heard crying “ How can I manage two months with only one cooking gas cylinder ?” The alarming price of each cooking gas cylinders shall be approx.Rs.800.On one hand Government declares war against people by rising prices and on the other hand it wishes to hoodwink and put FDI as the `Big Bang` terminator. A `magical medicine` for the national debts and loans !

Let us bite the bullets as prescribed one by one :

Price Rise bullet :

Endless price rise in Petrol, milk vegetables, dal , cooking gas, railway tickets, electricity and water bills was already finding no resonance with people. With no increase in salary, wages and profit Aaam Admi (common man) feels cheated. Congress argument is that subsidy to middle class in line with International prices must stop. This means the cooking gas cylinder must cost Rs.800/-. Does this mean that poor with no access to loans should continue to use kerosene and wood for cooking ?

FDI, communication, technology and transport are progressive chains.FDI is only the driver of the economy, not a player but a new driver as a support system. Drivers may speed up the accelerator, may reach the target in time at a lesser cost initially but drivers do not cure the future survival in the market alone. Industry and Agriculture are the major players and stakeholders together with technology and science. Finally it is the squeezed pocket of the majority people that decides the future of any services in the market.

Let us stand to be understood first. New foreign retail stores and food chains are going to the new drivers of the economy without any skills to generate more wealth. Drivers are not the `sole breadwinning champions` of the market -we must never forget. How can a `chotu` or a delivery boy from a retail shop can become a tie wearing Wal Mart salesman ? Rural consumers in America say they have to travel not less then 30 kms to big Marts as the small retails have been wiped off. Wal mart in future may replace the old network of services in retail by their new network and new employees but FDI in retail can never increase the purchasing power of people and provide more jobs to repair sick economy.

Recently in November-2011 on Television we see Punjab farmers blocking roads and showing protest by dumping their unsold Potatoe stocks. Farmers argument was the selling price of potatoes in villages remain Re1/- per Kg. Then we saw Rahul Gandhi with a potaoe in his hand promoting FDI as the magic solution for the future. Interesting FDI backdoor entry debates in Parliament took place only after the parliament work was blocked for ten days and issue was closed by the then Finance Minster Pranab Mukerhjee because Government got no support from its allies. All this debate among 1 % took place but the consent of the common man with shrinking pockets was still missing. Without increasing the pocket power or living standard of aaam admi this action of FDI entry on retail network replacement is a senseless dream.

India needs a more balanced agriculture-industrial policy instead of FDI in retail market to arrest suicides and agitations involving unlimited greed for selling land to developers and making selective 1% more powerful.

Both BJP-Congress are silent on more & more subsidy and loans to few favoured Corporate like KG-Basin Reliance in India who control the source of diesel, petrol and gas.It is not difficult to understand politicians and their disconnect with the Market and with loans. Government called UPA-2 is taking pride to display their `no controls` on Market Prices ? Ministers say that price rise is natural and is beyond their control. Print and Electronic Media is full of such false story of `courage` where FDI entry = Loan waiver of India.

So whose loan shall FDI terminate?

Blind Loan Model of the Economy in support of FDI forces me to see a huge disconnect. Allow me to remember my childhood in early 1980s. My parents refused to send me to an expensive three day school tour outside Dehra Dun. The logic given by my father was clear : `We Cannot Take Loan To Meet Your Luxury`. No Indian Middle class takes loan to meet their luxury expenses. The poor class per day income of Rs.26/- in village and Rs.32/- in city keeps majority Indians out of loan category.

Loan driven American government now with 9% unemployment is still better in Governance. American Mayor in small towns calls a weekly meeting in Town Hall. People are asked to audit town expenses and approve whether to install fountains in the village park or not. Whether to allow Wal Mart Retail Food chain to open its stores in American cities or not? This is decided by American citizens. Is it not true that American Citizens do not allow Business Houses to run private Banks ? So participation of people decides in America unlike in India. Here in India only Finance Minster or PM decides whether to allow Wal Mart Retail Food Chain or not. Ministers must stop shedding Crocodile tears and stop painting FDI as a future loan waiver. Why should FDI- a suited booted new driver of economy be appointed as our future loan terminator ?

Why FDI is allowed to enter retail and farming and not Indian Investors who have lot of Kalla Dhan or hidden dirty money waiting to be put in the market ? This again is not a mystery.

Agriculture Bullet:

The fear of multinational retail chains forecasting lower prices to consumers and higher prices to farmers is a false trick. This raises a number of questions. Is FDI indeed a disadvantage? Do we want to ensure higher margins to traders? What about the horror tales of exploitative and non-value adding middle-men in different tested countries? The forecast of eventual `squeezing’ of the consumer is equally bizarre. If there is more competition, prices will drop ! How, then, would FDI in retail favour monopolistic pricing? In any event, if large-scale retailing does squeeze the consumer, is it that a desi (Indian) squeeze is more bearable than a foreign bear-hug of Wal Mart? One section of opinion in the past was that there is plenty of money for investment in retail and, hence, foreign participation is unnecessary. This section is powerful but is silent now due to unending recession. If this is true why is the huge opportunity in food processing and packaged branded low-cost edible products still unexploited? The cold chain of refrigeration and the logistics support required to make fortunes for farmers out of fruit and vegetables demand heavy investments. If money in black domestic market is in plenty, this avenue should have been explored indigenously by now. When America economy is in problem why this love for FDI to help revive Americans more and Indians less.

Let us face the Employment bullet as put forward by a famous agriculture activist Divinder Sharma: “The Indian retail market is estimated to be around $400 billion with more than 12 million retailers employing 40 million people. Ironically, Wal-Mart’s turnover is also around $420 billion, but it employs only 2.1 million people. If Wal-Mart can achieve the same turnover with hardly a fraction of the workforce employed by the Indian retail sector, how do we expect big retail to create jobs? It is the Indian retail sector which is a much bigger employer, and big retail will only destroy millions of livelihoods.”

What India need is systemic reforms in favour of 99% people and their pockets and not in favour of 1% supported by Multinationals and their hidden pockets in Tax Havens.

How government sustains to save people by stopping this `short cut` `slap` kitchen politics of FDI bullets and Prise rise needs to be seen at ground zero. Income and Purchasing power of majority needs to be repaired first.

Written By :

Rakesh Manchanda,5,Mutankaclose,Roads Park,Lusaka-Republic of Zambia.

Mobile:0978278371.

Note for more similar articles please browse and read few of my last year works via google :

Budget-Who shall benefit in 2012-13 ?

Price Rise, Crocodile Tears, Loans & Quit India Movement.

Rahul Gandhi applies old trick of a potatoe squeeze & support in villages.

Govt must stop the governance of protecting one percent.

America-India Support System- Is this a Tom & Jerry Comic Show ?

American begger in Delhi.

Correction in global governance deficit as intiated in UN by Indian PM.

Why should FDI- a suited booted new driver of market be our future loan payer ?

FDI is only a market driver having no power to pay off loans.

(Stop this `short cut` `slap` kitchen politics of Prise rise-FDI.)
By : Rakesh Manchanda.

Is this a war with bullets to ensure better Governance ? Or is this a war to protect Corporate and bail out American economy in India ? Our `honest` PM is demanding more sacrifices to counter new price rise. He safeguards FDI backdoor entry and asks the nation to be prepared. “Bite the bullet and go down fighting courageously”- is the war cry of our PM. Bomb shells can be heard in the middle class kitchens. A housewife is heard shouting “ How can I manage a full two months with one cooking gas cylinder ?” The alarming price of each cooking gas cylinders shall be approx.Rs.800.On one hand Government declares a war against people by rising prices and on the other hand it wishes to hoodwink and put FDI as the Big Bang loan terminator. A `magical medicine` for the national debts and loans !
Endless price rise in Petrol, milk vegetables, dal , cooking gas, railway tickets, electricity and water bills was already finding no resonance with people. With no increase in salary, wages and profit Aaam Admi (common man) feels cheated. Congress argument is that subsidy to middle class in line with International prices must stop. This means the cooking gas cylinder must cost Rs.800/-. Does this mean that poor with no access to loans should continue to use kerosene and wood for cooking ?
FDI, communication, technology and transport are progressive chains.FDI is only the driver of the economy, not a player but a new driver as a support. Drivers may speed up the accelerator and may reach the target in time at a lesser cost initially but drivers do not cure the future survival in the market alone. Industry and Agriculture are the major players and stakeholders together with technology and science. Finally it is the squeezed pocket of the majority people that decides the future of any services in the market. Let us stand to be understood. New foreign retail stores and food chains are going to the new drivers of the economy without any skills to generate more wealth. Drivers are not the `sole breadwinning champions` of the market we must never forget. How can a `chotu` or a delivery boy from a retail shop can become tie wearing Wal Mart salesman ? Rural consumers in America say they have to travel not less then 30 kms to big Marts as the small retails have been wiped off. Wal mart in future may replace the old network of services in retail by their new network and new employees but FDI in retail can never increase the purchasing power of people and provide more jobs to repair sick economy.
Recently in November-2011 on Television we see Punjab farmers blocking roads and showing protest by dumping their unsold Potatoe stocks. Farmers argument was the selling price of potatoes in villages remain Re1/- per Kg. Then we saw Rahul Gandhi with a potaoe in his hand promoting FDI as the magic solution for the future. Interesting debates in Parliament took place and issue was closed by the then had Finance Minster Pranab Mukerhjee because Government no support of its allies. All this debate amoung 1 % took place but the consent of the common man with shrinking pockets was still missing. Without increasing the pocket power or living standard of aaam admi this action of FDI on retail network replacement is a senseless dream.

India needs a more balanced agriculture-industrial policy instead of FDI in retail market to arrest suicides and agitations involving unlimited greed for selling land to developers and making selective 1% more powerful.

Both BJP-Congress are silent on more & more subsidy to few favoured Corporate like KG-Basin Reliance in India.It is not difficult to understand politicians and their disconnect with the Market and with loans. Government called UPA-2 is taking pride to display their `no controls` on Market Prices ? Print and Electronic Media is full of such false story of `courage` where FDI entry=Loan waiver of India. Ministers say that price rise is natural and is beyond their control.

Blind Loan Model of the Economy in support of FDI forces me to see a huge disconnect. Allow me to remember my childhood in early 1980s. My parents refused to send me to an expensive three day school tour outside Dehra Dun. The logic given by my father was clear : `We Cannot Take Loan To Meet Your Luxury`. No Indian Middle class takes loan to meet their luxury expenses. The poor class per day income of Rs.26/- in village and Rs.32/- in city keeps majority Indians out of loan category. Loan driven American government now with 9% unemployment is still better in Governance. American Mayor in small towns calls a weekly meeting in Town Hall. People are asked to audit town expenses and approve whether to install fountains in the village park or not. Whether to allow Wal Mart Retail Food chain to open its stores in American cities or not? This is decided by American citizens. Is it not true that American Citizens do not allow Business Houses to run private Banks ? So participation of people decides in America unlike in India. Here in India only Finance Minster or PM decides whether to allow Wal Mart Retail Food Chain or not. Ministers must stop shedding Crocodile tears and stop painting FDI as a future loan waiver. Why should FDI- a suited booted new driver of economy be painted as our future loan terminator?

Why FDI is allowed to enter retail and farming and not Indian Investors who have lot of Kalla Dhan or hidden black money waiting to be put in the market ? This again is not a mystery.
The fear of multinational retail chains forecasting lower prices to consumers and higher prices to farmers is a false trick. This raises a number of questions. Is FDI indeed a disadvantage? Do we want to ensure higher margins to traders? What about the horror tales of exploitative and non-value adding middle-men in different tested countries? The forecast of eventual `squeezing’ of the consumer is equally bizarre. If there is more competition, prices will drop ! How, then, would FDI in retail favour monopolistic pricing? In any event, if large-scale retailing does squeeze the consumer, is it that a desi (Indian) squeeze is more bearable than a foreign bear-hug of Wal Mart? One section of opinion in the past was that there is plenty of money for investment in retail and, hence, foreign participation is unnecessary. This section is powerful but is silent now due to unending recession. If this is true why is the huge opportunity in food processing and packaged branded low-cost edible products still unexploited? The cold chain of refrigeration and the logistics support required to make fortunes for farmers out of fruit and vegetables demand heavy investments. If money in black domestic market is in plenty, this avenue should have been explored indigenously by now. When America economy is in problem why this love for FDI to help revive Americans more and Indians less.

What India need is systemic reforms in favour of 99% people and their pockets and not in favour of 1% supported by Multinationals and their hidden pockets in Tax Havens. Income and Purchasing power of majority needs to be repaired first.
How government sustains to save people by stoping this `short cut` `slap` kitchen politics of FDI and Prise rise needs to be seen at ground zero.

Written By :

Rakesh Manchanda,
5,Mutankaclose,Roads Park,
Lusaka-Republic of Zambia.

Mobile:0978278371.

Note for more similar articles ps read my last year works via google :
Budget-Who shall benefit in 2012-13 ?

Price Rise, Crocodile Tears, Loans & Quit India Movement – Rakesh Manchanda.
Rahul Ghandhi applies old trick of a potatoe squeeze & support in villages-