THE COMING CAPITALIST SALVATION OF INDIA

Hi, everyone.  I’m Karma Singh, a longtime TTPer in Bangalore, India’s Silicon Valley.  I was with Jack Wheeler on his incredible Hidden China adventure last month, and we talked about what’s going on in India, the world’s second most populous country and China’s rival for superpower status in Asia.

Our conversations got pretty interesting, so Jack suggested I write an India Report for TTP.  Here’s my first effort.  Let’s jump right in.

India’s major drawback is the people administering the country. Plagued with monumental amounts of corruption, there are no words to describe these monstrous looters.   According to an article published back in 2010, unofficial estimates of black money obtained through corruption is pegged around 1.4 Trillion US Dollars. 

Dozens of new scams are unearthed one after the other, Mining Scam, Railway Scam, 2G Spectrum Scam, Thorium Scam, Helicopter Bribery Scam, National rural health mission Scam and the list goes on running in to hundreds of billions of dollars. 

This kind of rampant, brazen corruption by politicians is hampering growth and development. This Wikipedia article will give you more insight on corruption in India. 

31% of ministers in the parliament have serious criminal cases against them. The Supreme Court passed a directive which bans convicted law makers from running for office or continuing their posts. The cabinet’s attempt to pass an ordinance against the SC directive turned vain after public outcry this month. Can you fathom the prime minister’s cabinet shielding corrupt members through legislation? 

Well, with Obama and Harry Reid, I suppose you can.

The judiciary is burdened with over 30 million pending court cases, If the shortage of judges is not addressed this number will rise to 150 million cases by 2040. People prefer out of court settlements than file a case and spend half their life fighting it. 

Regulations and increasing government intervention is an issue not just in India but around the world.  The Indian bureaucracy, however, is in a class by itself.  As bad as you think US bureaucrats are, say from OSHA or the EPA, that’s Kindergarten compared to India.

It is a nightmare thicket of countless rules and regulations impossible for a business to adhere to. Public officials take advantage of this and exploit businesses. 85% of Indians think political parties are corrupt, 75% think police are corrupt, 65% feel parliament, legislature, public officials and public servants are corrupt, 61% feel the education system is corrupt .

From registering a brand new car, to building a completely legal structure on your own property, from student admissions in universities, to obtaining permissions, business & individuals regularly pay bribes. It has become the norm, a way of life so to speak. Indians are shackled by regulations which are enforced by a criminal bureaucracy. 

Meanwhile, the lives of honest officers are made as difficult as possible.  IAS officer Mr. Ashok Khemka, for example, was transfered 40 times in 20 years.

A chief financial officer of a 5 Star-rated hotel said, "We have to pay (bribe) the cops every year. Obtaining a license to serve alcohol in the hotel is extremely expensive, so we just have a small area in the hotel in which we are permitted to serve alcoholic drinks.  Since it becomes unviable for us to obtain licenses for other areas including bedrooms, the only alternative is that we pay off the cops". 

A study by transparency international has found that, truckers in India pay 5 billion dollars annually in bribes. 

India ranks 119th  in economic freedom. Business freedom has been on the decline in the last decade, It is extremely repressive. Setting up a business involves going through lengthy processes, paying bribes to attain necessary licenses. 

That’s the bad news.  However, things are changing. India is where it is today despite the government. 

Rashid Masood, member of the ruling Congress party, was convicted in an education scam by giving MBBS admissions to undeserving candidates for money. He is the first minister to be disqualified in accordance with the SC directive. 

A former Chief Minister of the state of Bihar involved in a 300 million dollar fodder scam was sent to prison. He has been convicted for 7 years. Even though he is receiving VIP treatment (a television, two cooks, extra visiting hours), people are still happy. He too has disqualified. 

It is a start, a first victory in the war against corruption, which brings us to the 2014 general elections. 

Indians comprise 17.5% of all the 7 billion people on earth, or 1.22 billion.  Per the latest (2011) Census, some 980 million are Hindus, 160 million Moslems, 30 million Christians, 22 million Sikhs, 10 million Buddhists, 5 million Jains, and 11 million adherents of various tribal beliefs.  There are 714 million registered voters in India. 

India has a parliamentary form of government, just like Britain. There are two houses — The Lok Sabha (House of the People) and the Rajya Sabha (Council of the States). While there are 790 Members of Parliament total in both the houses, it is the majority leader of lower house, the Lok Sabha, who gets to be Prime Minister and runs the government.

If America had a parliamentary system, John Boehner would be in charge in Washington, not Barack Obama. 

There are 545 seats in the Lok Sabha, so 272 Seats is the magic number for political parties to achieve in order to form a government. If they fail to do so, they have to form a coalition government by aligning themselves with other political parties. 

There are two main parties in India: The Indian National Congress (Congress), and the Bharatiya Janata Party (BJP). There are various regional parties found in each of the 28 states. 

The 2014 election in India is of immense importance. One can compare it with the 2012 election in the United States. The US was crazy enough to vote for a man who is destroying America from within. Hopefully the Indians won’t make that mistake. 

The Indian 2014 Elections is about Socialism vs. Capitalism, between moochers and makers, parasites and producers. The Congress Party is pro-socialism. The BJP headed by controversial prime ministerial candidate Narendra Modi is the most capitalist candidate in Indian history. 

In fact, the Hindustan Times has titled Modi as India’s "Capitalist Hero."

Narendra Modi is the Chief Minister (equivalent to the Governor of a US state) of the state of Gujarat, winning for the third consecutive term. Virtually the entire business community throughout the country supports him, including  3/4ths of CEOs of all major companies. 

Gujarat is one of the few states with a surplus electricity, while the rest of country grapples with serious electricity shortages. Gujarat ranks number 1 in economic freedom.  It is the best place to engage in business in India.

Of course, the ruling elite in New Delhi – known as "Lutyens’ Delhi"[1] – hate and despise him.  Modi is no Brahmin. His caste – Ghanhi-teli – is so lowly it is officially designated as an "Extremely Backward Caste" or EBC.  He started out in life with a tea stall in a railway station.  Although well-educated (he has an MA in political science from Gujarat University), he doesn’t speak English well and ignores the elite English-speaking media.

Nonetheless, he is very media savvy, and has a quite professional website – in English: www.narendramodi.in/.

He is straight forward and politically incorrect. For such a man to become the Prime Minister is unacceptable to elitist politicians from all political parties including his own. He is an outsider in a private club.

The Congress Party is trying to buy  their way out of the coming election. They have subsidized phones and tablets, and are subsidizing food for nearly 800 million people making it the world’s largest welfare scheme.

If you are against it you are labeled "evil" & "heartless". There is no emphasis on job creation which will make people self sufficient.  Sound familiar?

India’s most major asset is her youth.  30% of India’s 1.22 billion are under age 15.  18% are between 15 and 24.  Over 40% are between 25 and 54.  Less than 13% are over 54 years old.  This means younger voters vastly outnumber older ones who want to keep the status quo.  India’s new generation, of which I am proudly a member, is smart, tech savvy, hard working. 

Mukesh Ambani, India’s richest man, says that Modi is an inspiration to the youth. Good news, considering that there are more than 350 million voters are between 18 & 35 years of age.

India’s future depends on the outcome of the 2014 elections. They must take place by May 31^st of next year.  Narendra Modi could be my country’s capitalist salvation.  Hundreds of millions of young voters are hoping that Narendra Modi will smash open the gates of Lutyens’ Delhi?  

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[1] .  Specifically, the Lutyens Bungalow Zone.  Sir Edwin Sir Edwin Landseer Lutyens (1869-1944) was the British architect famous for designing a section of New Delhi, when the British were shifting their capital from Calcutta to Delhi. In his design, apart from the commercial area, India gate, President’s quarters etc., there are about 900 Bungalows.

Occupied by the Prime minister, ministers (of all political parties), politicians, judges, bureaucrats, and defense personnel, around 60 are privately owned. There is no directory of the residents of this zone. All houses have high fences with only a few putting up a nameplate on the gate. Cost of these houses goes up to US$ 65 million USD. Lutyens’ Delhi is the elite ‘establishment’ of India. It is from the Bungalow Zone that India is administered.