by Devinder Sharma | Dissident Voice, October 14th, 2008
In India, it didn’t hurt when the farmers were dying. Over 200,000 farmers have committed suicide in the past 15 years, and more than 40 percent of India’s 600 million farmers want to quit agriculture to look for menial jobs in the cities.
The national media kept quiet.
Now that the markets are crashing, the media is up in arms. “Act fast, go big. It is not only about bulls and bears anymore. It’s about India. And it’s hurting,” says a lead story in a national daily. But it didn’t hurt when the farmers were dying.
There is blood on Dalal Street (India’s Wall Street). Yet throughout all these years we refused to acknowledge that farmers were dying, and agriculture was bleeding. Farmers are children of a lesser God, it seemed, who do not belong to India. They only live in Bharat, the countryside.
Just a few months back, when the day Finance Minister P Chidambaram in his budget speech announced a Rs 60,000-crore* loan waiver for the beleaguered farming community, there was an orchestrated outcry: “Where will this money come from?” Television anchors were visibly angry at this supposed ‘windfall’ for the farmers, the print media was outraged at this ‘political and not economic’ decision just before the ensuing elections, and the industry leaders were seen sulking.
Six months later, no one is asking the same question. With the global financial crisis failing to work itself out, the Reserve Bank of India (RBI) is under pressure to intervene. Soon after the Wall Street mayhem, the RBI had pumped in Rs 84,000-crore in the domestic banking system through liquidity facility adjustment. An additional Rs 20,000-crore has been released through a 0.5 percent reduction in a cash reserve ration (CRR), to be further slashed by 100 basis points. It took RBI five years to make the first cut in CRR on Monday, and the next cut comes five days later. That sure is some urgency.
Sounds technical, but let me simplify. Liquidity in layman terms means ‘fund availability’ or, in simple words, making available more cash. All over the industrialized world, governments are stepping in to provide more cash in the hands of the private banks, and India is no exception.
Despite the Finance Minister saying that the fundamentals are strong, the banks are on a massive borrowing spree. In the first week of October alone, they borrowed Rs 90,075-crore every day from RBI through liquid facility adjustment. In the days to come, the RBI is under pressure to release another Rs 30,000-crore through the CRR, and also to cut the repo rate — the rate at which it lends to banks. And thanks to the loan waiver, the banks will receive another Rs 50,000-crore in the coming weeks as part reimbursement for the farm loan waiver and fertilizer loan.
Isn’t it a fact that Rs 60,000-crore loan waiver (later enhanced to Rs 71,000-crore) was actually a relief to the banks? What seemed to be a ‘political’ decision in the name of pulling out the indebted farmers was actually meant to maintain and sustain the health of the banking system. If the government had not provided the loan waiver, banks would have been in a terrible liquidity crisis. With farmers unable to repay, these banks would have been saddled with massive non-performing assets (or a shortfall in liquidity) or non-availability of Rs 71,000-crore in cash.
In other words, the loan waiver was a partial bailout for the banks. Now no one is asking: “Where will this money come from?” On the contrary, most analysts are asking for more ‘speed and sagacity’ to tide over the crisis. The industry has already demanded a bailout package of Rs 100,000-crore.
If only such ‘speed and sagacity’ was shown to tide over the terrible agrarian crisis sweeping throughout the country for over a decade now, thousands of farmers would have been saved from committing suicide. If only the RBI had stepped in to make more cash (or liquidity) available, the nation could have easily provided an assured employment to each and every Indian, not only for 100 days but for all the 365 days in a year. The National Rural Employment Guarantee Programme (NREGA) can be easily extended to bring every unemployed Indian under its gambit.
It is here that I fail to understand the sagacious logic of keeping the poor hungry, and then expecting a higher economic growth trajectory; of paying a multi-million dollar salary (in addition to lucrative perks) to the bosses of the banks and corporate houses, and then to make the man on the street pay for the losses; in other words, the logic behind privatizing the profits and socializing the losses.
Take the case of the bankrupt Lehman Brothers. While the shareholders in the company have been wiped out, Richard Fuld, its chief executive, walked away with US $480 million as his personal remuneration over eight years, which includes a $14 million ocean-front villa in Florida, and a home in an exclusive ski resort. Lawmakers investigating the bailed out insurance company AIG were shocked to learn that days after the government rescued the company, it unashamedly spent US $44,000 on a posh California retreat for its executives, complete with spa, banquets and golf outings.
Why blame the American corporate leaders when US president George Bush himself had given them a free rope: “Government should not decide the compensation for America’s corporate executives.” What he probably meant was that come what may, the US government will continue to provide funds to meet obscene corporate salaries and perks.
Prime Minister Manmohan Singh had also removed the upper ceiling on corporate salaries. According to Merrill-Lynch and Capgemini, driven by impressive economic gains and robust market capitalism growth in 2007, India led the world in high net worth individual (HNWI) population growth at 22.7 per cent. Two year earlier in 2005, there were 83,000 high net worth individuals with a wealth of at least $1 million (without including immovable property). And you guessed right – the number of millionaires has gone up quite considerably in the meantime.
This brings me back to the same question. How long will the world go on encouraging an economic system that makes the rich richer and the poor poorer? While 36 billionaires in India have a collective economic wealth equivalent to one third of the country’s GDP, the country’s 600 million farmers collectively account for only a 17 percent share. With every passing year, the share of agriculture in GDP continues to slide down even further.
The average monthly income of a farm household (which includes five members of a family and two cattle) does not exceed Rs 2,400 (US $60). The value erosion in real farm income over the past few decades has never been discussed, but the erosion in paper wealth of shareholders is being projected as a national disaster.
Bailing out the farmers from a distressing situation is always considered to be bad economics. It is branded as a political compulsion, and the sooner politicians emerge out of it the better it is supposed to be for economic growth and development. This economic prescription, which every economist worth his title is willing to endorse, is invariably given for the farming community, the landless workers and the marginalized communities. They need to learn to be enterprising, is the assumption, and therefore must stop living on government subsidies.
But when it comes to the enterprising millionaires — corporates and leading bankers — government bailouts are not only a must, but should be done speedily. ‘Where will the money come from?’ is not a question to be asked when you are subsidizing the rich and the elite. That, we must understand, is their birthright.
* one crore = 10 million
Devinder Sharma is a New Delhi-based food and trade policy analyst. He is a regular contributor to Share the World’s Resources (STWR), where this article originally appeared, and can be reached at hunger55@gmail.com. Read other articles by Devinder, or visit Devinder’s website.
War Hero or War Criminal?
October 17, 2008McCain and Rolling Thunder
By Robert Richter | Information Clearing House, Oct 16, 2008
As character assassination attacks on Sen. Barack Obama have now taken over Sen. John McCain’s campaign, and because McCain cites his military experience as of prime importance, now is the time to focus closer attention on a facet of the Arizona Senator’s own character. This is related to his 23 combat missions for Operation Rolling Thunder – the Pentagon’s name for U.S. bombing of North Vietnam.
I will never forget how stunned I was when Gen. Telford Taylor, a chief U.S. prosecutor at the Nuremberg trials after World War Two, told me that he strongly supported the idea of trying the U.S. pilots captured in North Vietnam as war criminals – and that he would be proud to lead in their prosecution.
An ardent opponent of the Vietnam conflict, Taylor spoke with me in the fall of 1966 when I was looking into producing a documentary on this controversy for CBS News, where I was their National Political Editor. While he did not mention any pilot’s name, then U.S. Navy Lieut. Commander John McCain who was captured a year later, would have been among the group Taylor wanted to prosecute.
Why would anyone have wanted to prosecute McCain and the other captured pilots? Taylor’s argument was that their actions were in violation of the Geneva conventions that specifically forbid indiscriminate bombing that could cause incidental loss of civilian life or damage to civilian objects. Adding to the Geneva code, he noted, was the decision at the Nuremberg trials after World War Two: military personnel cannot defend themselves against such a charge with a claim that they were simply following orders.
There were questions raised about whether the Geneva conventions applied to the pilots, since there had been no formal declaration of war by the U.S. against the Hanoi regime – and the Geneva rules presumably are only in force in a “declared” war.
Anti-war critics at the time claimed that despite the Pentagon’s assertion that only military targets were bombed, U.S. pilots also had bombed hospitals and other civilian targets, a charge that turned out to be correct and was confirmed by the New York Times’ chief foreign correspondent, Harrison Salisbury.
In late 1966 Salisbury described the widespread devastation of civilian neighborhoods around Hanoi by American bombs: “Bomb damage…extends over an area of probably a mile or so on both sides of the highway…small villages and hamlets along the route [were] almost obliterated.” U.S. Secretary of Defense Robert McNamara conceded some years later that more than a million deaths and injuries occurred in northern Vietnam each year from 1965 to 1968, as a result of the 800 tons of bombs a day dropped by our pilots.
In one of his autobiographies McCain wrote that he was going to bomb a power station in “a heavily populated part of Hanoi” when he was shot down.
If Gen. Taylor tried McCain, would he have defended himself as “just following orders” despite the Geneva conventions barring that kind of bombing and the Nuremberg principles negating “just following orders?“
The targets McCain and his fellow pilots actually bombed in Vietnam and his justification then or now for the actions that led to his capture, are no longer simply old news. They are part of what must be taken into account today, as voters weigh support for him or Obama to be the next President of the United States.
This is not about the hugely unpopular war in Vietnam. It is about the character of a man who seeks to be U.S. President, who perhaps was not simply a brave warrior, but a warrior who by his own admission, bombed and was ready to bomb targets in violation of the Geneva conventions and Nuremberg principles.
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When I passed along Gen. Taylor’s comments to my network superiors the program was scrapped: too hot to handle. Instead Air War Over the North was telecast, about “precision bombing” North Vietnam military targets by U.S. pilots. A few years after that broadcast, a Pentagon public information executive gleefully told Roger Mudd in The Selling of the Pentagon that he, the Pentagon official, not only had persuaded CBS to produce Air War Over the North, he even chose those to be interviewed and coached them about what they should say. This unethical collaboration and intercession by the Pentagon in the news media is sadly all too familiar a tactic repeated in the Bush-Cheney years.
Robert Richter was political director for CBS News from 1965 to 1968.
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Tags:bombing missions and targets, General Telford Taylor, North Vietnam, Operation Rolling Thunder, Pentagon, Sen. Barack Obama, Sen. John McCain, United States, violations of Geneva Conventions, war crimes
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