Beware of those propagandist tricks

The daily belabouring of issues only creates a frenetic public parade of issues and allegations. But nothing is followed up to establish the truth.

• In a democracy, those who are spiritual have to be political. It suits the interests of the corrupt and oppressive players in politics to sustain the myth that politics is a truth, justice, welfare, den of scoundrels. 
• Politics is sacred. A Swachh Bharat will be possible only through swachh politics.
• Commitment to truth is the core that spirituality and politics should share. Truth operates on the ground as justice. Justice addresses human dignity and welfare. Wherever truth is compromised, people’s welfare has suffered and oppression has bared its fangs.
• It is politics that contextualises commitment to truth and makes it concrete. Those who care for truth in politics remain continually vigilant against every measure, every propagandist trick, meant to hypnotise the masses. 
• Commitment to truth creates a national culture marked by scientific temper and rational thinking.
• Capacity of the masses to think rationally can be disabled by a variety of factors such as lack of education, their inability to think rationally, their vulnerability to propaganda, the non-availability of relevant data, the creation of hype and waves, and so on.
• Democracy, especially, is under a duty to educate and empower citizens to think rationally and choose objectively. Oppressive regimes are averse to spreading education and free thinking.
• The dogmas of patriotism and nationalism are valuable to the extent of serving as catalytic agents to galvanise people’s energy for nation-building. But in the history, these concepts have been used mostly to spread hatred among nations and within them, between castes, groups, communities.
• Commitment to truth on the part of citizens requires that they see through the avalanche of issues. An illusion of upholding accountability is created by the daily belabouring of issues. A new issue is ushered even before the current one settles down. Nothing is followed up to the extent of establishing the truth of issues. Nothing changes.
• In a democracy, its citizens must remain in harmony with one another. They should never treat each other as enemies. Enmity is spread by vested interests to thrive by polarising citizens. The policy of ‘divide and rule’ never promotes people’s welfare.
• A democracy ought to take care of the majority that are poor. The fruits of development should be distributed preferentially among the poor. 
• The oligarchic element lurks in every democratic polity should never be allowed to become powerful enough to scuttle democracy. The corporates of today are the successors of yesteryear oligarchs. 
• The threat that the oligarchic elements hold out to democracy becomes ominous when the media play a partisan and propagandist role. When this process crosses the Lakshman rekha, it imperils democracy.
• The dogma of stability and its implications for the dynamic of democracy needs to be watched. Every centre of power is apt to deem itself to be the sole and legitimate custodian of national destiny. It views prospects for change with extreme intolerance. This keeps the dividing line between ‘freedom of choice’ and ‘sedition’ continually fluid. This brings ‘the right to choose’ under extreme stress and strain.
• The difference between a corrupt government and a tyrannical one is that the former knows itself to be a bird of passage and are fixated on reaping a bumper harvest in quick time. A tyrannical government is obsessed not with megabucks but with self-perpetuation. It substitutes the money with monopoly. The corrupt do not wish to be caught. The tyrannical do not wish to be shown the door. Both addictions harm democracy. And both skip on thin ice.

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What is Gujarat model of development by Modi?

The word ‘development’ as a buzzword is in vogue for almost 60 years and its actual meaning is still elusive, since it depends on where and by whom it is used. President Truman merely wanted to include in his 1949 Inaugural Address as a fourth point that would sound ‘a bit original’. So from the very beginning, no one not even the US President really knew what ‘development’ was all about. Development fail to address poverty or to narrow the gap between rich and poor, but in fact it both widens and deepens this division and ultimately creates poverty, as natural resources and human beings alike are increasingly harnessed to the pursuit of consumption and profit.  'Development' has been widely used as a hard drug, addiction to which may stimulate the blissful feelings that typify artificial paradises. Development is not a buzzword but a toxic word.

• The Gujarat assembly elections have put under intense scrutiny Narendra Modi’s Gujarat model of development which is touted as worthy of replication throughout the country. Audit reports of the CAG provide ample evidence of it being inefficient, corrupt and not beneficial to the common people. 
• The standard indicators of development comprise a range of indices, and not necessarily the level of private investment in an economy. A combination of economic growth and redistributive justice ensues from the overall development of a state or a nation. Narendra Modi’s Gujarat model of development and its skewed impact on indicators that constitute holistic and comprehensive development doesn't include the quality of human life and is not a “development” at all. It appears that this model of development has been vulgarised to mean something quite different.
• Gujarat’s transformation under the then chief minister Modi for over a decade between 2001 and 2014, is based on perception rather than facts. The development is based on economic statistics rather than the parameters that reflect well being of lower classes. The harsh truth is that his claims of success as Gujarat CM were overly exaggerated.
• In his maiden speech in the Lok Sabha in June 2014, Modi said that the Gujarat model could not be universalized, and that India being a vast country, there was a need for many different models.
• Today, Gujarat stands nowhere with reference to common man. It is only haven for large investors with quid pro quo benefits to Modi & BJP.
• While demonetisation was aimed at disarming cash rich opposition for winning UP elections, GST and tax terrorism is aimed at promoting large & MNC businesses while dealing a deadly blow to informal sector which doesn't contribute to coffers and both failed to achieve any of its stated objectives and loaded the nation with unintended consequences. Yet he successfully convinces people that he is working for welfare of poorest people with his rhetoric and hammering selective truths while pursuing his own agenda.
• Gujarat elections will teach him that he can't fool all the people all the times.

In Modi's  Gujarat profit was privatized but loss was socialized, shamelessly

The rise of Narendra Modi ,... Vinod Jose

Modi suffers from worst possible type of corruption; an insatiable desire for personal glory at any cost; an extremely deep moral and spiritual corruption. Modi belongs to the line of autocratic ideologues rather than the western tradition of revolutionary neo liberalism, or marxist rationalism. He also represents the worst aspect of democracy: a demagogue who caters to an irrational populace’s cravings for self-identity and release from self-responsibility. He might not have taken any bribes in recent years but there is no way he could have risen to his position without having made massive and horrendous economic & moral compromises ... as described by Jayant Bhandari.

GST to end of informal sector?

 

• The tax evasion propensity of Indians stem from some deep seated hangover from feudal times when the state was exploitative and citizens considered taxation system as - exorbitant and arbitrary; fundamentally illegitimate; excessively burdensome; irrationally complex; patently corrupt; simple greed. It is usually a varying combination of the above. As long as people are poor and less educated and governments are irresponsible, inefficient and blatantly corrupt in public spending, efforts for higher tax realizations will be thwarted by its citizens.
• GST is supposed to absorb informal sector into formal economy and result in higher payment of taxes to exchequer with builtin incentives for compliance. This also leaves trails of transactions making difficult for the GST dealer escape from income tax. 
• Any tax policy is as good as it is administered. One of the worst effected wings of government by 'corruption' are commercial and income tax departments. So without even evaluation it can be safely concluded that GST would have very limited success in increasing tax realization, at least to begin with.
• Without tax evasion what would chartered accountants and lawyers would do? At least 50% of them are engaged in tax evasion activities not only in India, but world wide.
• No one in the world pays taxes smilingly. That would be very strange economics and irrational. Even in USA, income tax compliance is estimated at 80% and they are proud of it as an achievement. For India to reach that level it would be long and focused journey.
• The informal sector dealer is now compelled to maintain books of accounts, raise invoices for all transactions, pay income tax, file GST and IT returns etc. This increases its over heads reduces its inability to operate on razor thin margins, raise funds with high interest rates etc.
• Informal sector owned by less educated people and operated by semi skilled people get no support from government, banks or institutions and survive on their own with their borrowing interest rates as high as 36% per annum and survive on razor thin margins. They work long hours with less or no holidays and provide livelihood to 90% people and contribute to GDP by over 45%. Most of them doesn't have enough margins to comply with GST requirements. GST is an attempt to destroy them and is not in national interest. Unless government provides as much support they provide to formal economy they have no business to interfere in their working. Just because government issued a fiat, they are not going to wind up their activity and vanish. They will survive adjusting in what ever the way it is possible. The corrupt officers will end up squeezing out more money from them.
• So far 'cash economy' and 'white economy' are largely intertwined. With GST making such things difficult 'cash economy' will run in parallel with 'white economy' which is even more dangerous.
• Those who can modernize, raise bank loans for its working capital etc will go ahead and survive or they will completely migrate into 'formal economy'. Lacking intrinsic financial strength and ability to comply with the complexities and overhead expenses most will opt for going out completely into 'cash economy'.
• This would result in one more layer between consumers and manufacturers with proportionate increase in prices. 
• This parallel 'cash economy' will thrive unless GST rates are brought down to below 10% which renders 'cash economy' nonviable.

Anywhere in the world in the past, GST was adopted by several countries to streamline business activities so that tax compliance becomes simple, affordable and hassle free. In Australia, with full one year preparation, GST roll out impacted economy significantly and intangible benefits started accruing after two years. Only in India, mangled GST (which is no different to VAT) was seen as sacred cow which would eliminate tax evasion, increase tax collections for governments and would push GDP growth upwards. Impatient to wait for preparations to get completed which needs about an year, GST was rolled out with in 3 months with weak GSTN infrastructure and ample confusion everywhere. Expectedly, economic activity was seriously impacted and informal economy got adjusted with cash transactions and loss of jobs were enormous in SME segment. And now Govt is looking towards sky for God's help, who in any case won't help any one. Govt pundits must understand that incentivisation means not refunding a portion of tax paid on compliance but minimise taxes so that voluntary compliance increases. Finally, no matter what our pundits in ivory towers do, informal economy is going to stay in some form or other for many more years or even decades.