Source of neoliberalization in India


“It was not the US, furthermore, that forced Margaret Thatcher to take the pioneering neoliberal path she took in 1979. Nor was it the US that forced China in 1978 to set out on a path of liberalization. The partial moves towards neoliberalization in India in the 1980s and Sweden in the early 1990s cannot easily be attributed to the imperial reach of US power. The uneven geographical development of neoliberalism on the world stage has evidently been a very complex process entailing multiple determinations and not a little chaos and confusion.”

(David Harvey – A Brief History of Neoliberalism, pp9)

The Economic Function of Terrorism?


And why not? At the time when a global recession is on its way, there is a need to increase public spending to revive the economy. And Baba Keynes himself told us once – “Pyramid-building, earthquakes, even wars may serve to increase wealth, if the education of our statesmen on the principles of the classical economics stands in the way of anything better”. What is better than a war on terrorism which never ends – it will lead to a constant militarisation, and an expansion of the security and armaments industries necessary for boosting effective demand.

Is this really a conspiracy theory?

Financial Meltdown – A Last Resort?


Finance Capital in general holds the whole economy and public saving to ransom, then why cannot its poor agents kidnap a child for ransom?

2 MBA students held for kidnapping teen
25 Nov 2008, 0341 hrs IST

NEW DELHI: In a shocking fallout of the financial meltdown, two part-time MBA students who had apparently lost heavily on investments in stocks and real estate decided to make good their losses by joining in a plot to kidnap a 15-year-old south Delhi boy. The operation went awry when the mastermind, a cousin of the victim, panicked and dumped him at Okhla from where a passerby brought him home.

Arjun Jhamb Verma, a Class IX student of Gyan Bharati School in Saket, was kidnapped on his way to school on the morning of November 20. By Sunday night, the south Delhi police had arrested the two MBA students along with four others, including the kingpin who is an electronics and real estate dealer. The others include an inter-state extortionist and his accomplice as well as a hair-stylist.

Both MBA students were pursuing their course through correspondence. Police said Piyush Jain (24) had enrolled in IMT Ghaziabad and also dabbled in shares. His close friend Rohit Chopra (24), who is doing an MBA from Ignou, is a property dealer in Gurgaon. He had apparently lost a lot of money due to the slump in prices of flats. Rohit had also invested in the stockmarket at Piyush’s insistence.

Rohit’s father is a general manager at a leading hotel in the capital while Piyush’s father is an established graphic designer with his own setup in Karol Bagh.

Courtesy: TOI

The Financial Crisis – The Crisis of Not Finding Barbarians?


There is so much anxiety everywhere. Till recently the neoliberal world prospered by spreading insecurity and inculcating the feeling of ‘what comes next’ among the working class. This fragmented the class consciousness and competition thrived. Didn’t our good old Marx and Engels taught us the following?

“In proportion as the bourgeoisie, i.e., capital, is developed, in the same proportion is the proletariat, the modern working class, developed — a class of labourers, who live only so long as they find work, and who find work only so long as their labour increases capital. These labourers, who must sell themselves piecemeal, are a commodity, like every other article of commerce, and are consequently exposed to all the vicissitudes of competition, to all the fluctuations of the market…[T]he “organisation of the proletarians into a class, and, consequently into a political party, is continually being upset again by the competition between the workers themselves… The essential conditions for the existence and for the sway of the bourgeois class is the formation and augmentation of capital; the condition for capital is wage-labour. Wage-labour rests exclusively on competition between the labourers.”

But Marx understood that competition among workers is essentially a representation of competition among capitalists. There is a theory of displacing crisis, anxiety etc, that gives a patient reason to survive. In economic theory it is called the theory of external markets. Capital and capitalists thrive only by externalising/selling/’exporting’ commodities, crisis etc, to labour and other nations (or capitalists)… Rosa Luxemburg stressed on this aspect in her understanding of imperialism. The crisis period is that period in the political economic life of capitalism, when this export meets with obstinate hurdles.

Economists tell us that the present crisis is due to an unrestrained financialisation that the neoliberal globalisation has triggered. But then, hasn’t this radical financialisation diminished every external space? As soon as externality is posed, we find it accommodated and submitted to the larger global structure. Then in the above perspective, this is the crisis and the reason for anxiety! For the time being, there is no place to ‘export’ crisis – this is the biggest crisis!

More than a hundred years ago, a prominent Greek poet C.P. Cavafy wrote the following which clearly presents what is happening today – a crisis of not finding barbarians!

– Why should this anxiety and confusion
suddenly begin. (How serious faces have become.)
Why have the streets and squares emptied so quickly,
and why has everyone returned home so pensive?

Because night’s fallen and the barbarians have not arrived.
And some came from the border
and they say the barbarians no longer exist.

Now what will become of us without barbarians?
Those people were some kind of solution.

(‘Waiting for the barbarians’ in The Collected Poems of C.P. Cavafy, Translated by Aliki Barnstone, WW Norton & Company (2006), p 29)

ET Debates – Globalisation impedes labour mobility?


The Economic Times

Anti-immigration laws are enforced not to stop but control new settlements and to legitimise the use-and-throw logic that characterises neo-liberalism. This increases labour vulnerability economically and politically — by differentially including the immigrants and ghettoising the local consciousness against them.

Throughout the world — in Maharashtra, in Assam, in the US, everywhere — the same ghettoised psyche comes coupled with the trans-politicisation of economy, which has relegated people to passive receptors of global mobility of capital.

Specific identitarian conflicts today are various realisations of the competitive ethic that underlies a market-oriented political economy. With the entrenching of this ethic in every corner of the society under globalisation, such conflicts are bound to multiply.

What the market does essentially is that it perpetuates fragmentation and individuation, thus posing every division in a horizontal competition. Even those conflicting interests, which could be resolved only by structural transformation, are preserved through their metamorphoses into competing groups and lobbies.

Arguably the greatest Indian philosopher, Muhammad Iqbal understood this when he said, “Fanaticism is nothing but the principle of individuation working in the case of group”. In other words, regional/national fanaticism that defines anti-immigration today is the product of individuation that competition necessarily poses.

Under neo-liberal globalisation, I agree, the “global village” has become a virtual reality. However, in this village citizens are reduced to “much as potatoes in a sack form a sack of potatoes”.

They are thrown into a large “stagnant swamp”, where they desperately try to save themselves and stand up in whatever way they can — even if at the expense of others. So anti-immigrant upsurge and its legitimacy are nothing but a vent to this desperation. It is a commodified deformation, in the socio-political market, of structural conflicts.

Hence, the question is not whether globalisation impedes labour mobility, but how through various means it impedes labour’s ability to challenge capital.

A volte-face – Neoliberals and the Crisis


Recently, Finance Minister P Chidambaram boasted about the strength of India’s banking system and its “negligible exposure” to speculative practices like sub-prime lending. He proclaimed the banking system in the country to be “well regulated” and thus a protection against the full-fledged effect of the global financial crisis.

Again, his junior minister Pawan Kumar Bansal dubbed “any anxiety or uncertainty in India” to be misplaced. Why? Because “only a very small portion of our total population, less than two per cent, has any sort of exposure to the stock market”.

Ironically, till recently all these, which are being measured as India’s strength today, were considered to be the basic obstacles in India’s economic growth. Those who criticised financial liberalisation were dubbed conservatives, who did not like India’s new global image.

Though it is still very early to assess the ultimate impact of the crisis on India’s economy, or to proclaim an end to neoliberalism but the crisis has significantly shaken the self-confidence of the neoliberals in the country. The events have not been very kind to them from the very beginning. Amiya Kumar Bagchi rightly notes:

“Fortunately, despite all the attempts of successive governments at the Centre since 1991 to force the pace of ‘economic reforms’, the worst of their designs could not be carried through. These include full capital account convertibility, complete privatisation of the banking and insurance sectors, and total abolition of the distinction between banks and non-banking finance companies. Every time either major international crises or electoral compulsions have stayed their hand. In 1997 and this time around, financial crisis in Asia and the global financial crisis have prevented the enforcement of capital account convertibility”.

A cybernetician’s dilemma


Norbert Wiener

from Norbert Wiener (1948/1961) Cybernetics: or Control and Communication in the Animal and the Machine, The MIT Press, Cambridge, Massachusetts. pp.26-29

It has long been clear to me that the modern ultra-rapid computing machine was in principle an ideal central nervous system to an apparatus for automatic control; and that its input and output need not be in the form of numbers or diagrams but might very well be, respectively, the readings of artificial sense organs, such as photoelectric cells or thermometers, and the performance of motors or solenoids. With the aid of strain gauges or similar agencies to read the performance of these motor organs and to report, to “feed back,” to the central control system as an artificial kinesthetic sense, we are already in a position to construct artificial machines of almost any degree of elaborateness of performance. Long before Nagasaki and the public awareness of the atomic bomb, it had occurred to me that we were here in the presence of another social potentiality of unheard-of importance for good and for evil. The automatic factory and the assembly line without human agents are only so far ahead of us as is limited by our willingness to put such a degree of effort into their engineering as was spent, for example, in the development of the technique of radar in the Second World War.

I have said that this new development has unbounded possibilities for good and for evil. For one thing, it makes the metaphorical dominance of the machines, as imagined by Samuel Butler, a most immediate and non-metaphorical problem. It gives the human race a new and most effective collection of mechanical slaves to perform its labor. Such mechanical labor has most of the economic properties of slave labor, although, unlike slave labor, it does not involve the direct demoralizing effects of human cruelty. However, any labor that accepts the conditions of competition with slave labor accepts the conditions of slave labor, and is essentially slave labor. The key word of this statement is competition. It may very well be a good thing for humanity to have the machine remove from it the need of menial and disagreeable tasks, or it may not. I do not know. It cannot be good for these new potentialities to be assessed in the terms of the market, of the money they save; and it is precisely the terms of the open market, the “fifth freedom,” that have become the shibboleth of the sector of American opinion represented by the National Association of Manufacturers and the Saturday Evening Post. I say American opinion, for as an American, I know it best, but the hucksters recognize no national boundary.

Perhaps I may clarify the historical background of the present if I say that the first industrial revolution, the revolution of the “dark satanic mills,” was the devaluation of the human arm by the competition of machinery. There is no rate of pay at which a United States pick-and-shovel laborer can live which is low enough to compete with the work of a steam shovel as an excavator. The modern industrial revolution is similarly bound to devalue the human brain, at least in its simpler and more routine decisions. Of course, just as the skilled carpenter, the skilled mechanic, the skilled dressmaker have in some degree survived the first industrial revolution, so the skilled scientist and the skilled administrator may survive the second. However, taking the second revolution as accomplished, the average human being of mediocre attainments or less has nothing to sell that it is worth anyone’s money to buy.

The answer, of course, is to have a society based on human values other than buying or selling. To arrive at this society, we need a good deal of planning and a good deal of struggle, which, if the best comes to the best, may be on the plane of ideas, and otherwise – who knows? I thus felt it my duty to pass on my information and understanding of the position to those who have an active interest in the conditions and the future of labor, that is, to the labor unions. I did manage to make contact with one or two persons high up in the CIO, and from them I received a very intelligent and sympathetic hearing. Further than these individuals, neither I nor any of them was able to go. It was their opinion, as it had been my previous observation and information, both in the United States and in England, that the labor unions and the labor movement are in the hands of a highly limited personnel, thoroughly well trained in the specialized problems of shop stewardship and disputes concerning wages and conditions of work, and totally unprepared to enter into the larger political, technical, sociological, and economic questions which concern the very existence of labor. The reasons for this are easy enough to see: the labor union official generally comes from the exacting life of a workman into the exacting life of an administrator without any opportunity for a broader training; and for those who have this training, a union career is not generally inviting; nor, quite naturally, are the unions receptive to such people.

Those of us who have contributed to the new science of cybernetics thus stand in a moral position which is, to say the least, not very comfortable, We have contributed to the initiation of a new science which, as I have said, embraces, technical developments with great possibilities for good and for evil. We can only hand it over into the world that exists about us, and this is the world of Belsen and Hiroshima. We do not even have the choice of suppressing these new technical developments. They belong to the age, and the most any of us can do by suppression is to put the development of the subject into the hands of the most irresponsible and most venal of our engineers. The best we can do is to see that a large public understands the trend and the bearing of the present work, and to confine our personal efforts to those fields, such as physiology and psychology, most remote from war and exploitation, As we have seen, there are those who hope that the good of a better understanding of man and society which is offered by this new field of work may anticipate and outweigh the incidental contribution we are making to the concentration of power (which is always concentrated, by its very conditions of existence, in the hands of the most unscrupulous). I write in 1947, and I am compelled to say that it is a very slight hope.

“Admiring a flawed Gandhi”


Salil Tripathi correctly finds irony in the ads in the Danish newspaper, Morgenavisen Jyllands Posten, showing “the Dalai Lama admiring the Himalayas while preparing to ski down a slope; Nelson Mandela relaxing on a beach, carrying a surf board; and Mohandas Gandhi, smiling with a beer bottle in one hand, with the other, he is barbecuing sausages, empty beer bottles at his feet”.

But Tripathi makes a false comparison of these ads with “controversial cartoons of Mohammed” published by the same newspaper. In former cases one can justify them as an attempt to “challenge the self-righteous among us”, as they seem to “challenge” the stereotypes, but in the latter the newspaper was clearly strengthening the rampant orientalist stereotype already present among its readership – biases against Islam in the West. It was this anti-immigrant right-wing conservative Danish newspaper’s contribution to the post-modern “crusades” of the west.

Tripathi himself uses his arguments essentially to preach liberal media consumerism especially to Muslims.

Who’s who in the terror story


1. Nazis put the Reichstag building on fire, and then blamed the communists. The purpose was simple – to create an anti-communist wave and legitimise fascistic measures.

2. So, “Why ignore Bajrang Dal [and others’] role in blasts?”

3, Within hours of the Delhi blasts, the police administration finds heroes among rag-pickers. They are supposed to get 50,000 Rs and be made honorary SPOs…

4. A 11-year old child labourer at the Barakhamba Road crossing in central Delhi – the heart of Delhi – saw two bomb dumpers and described them for the police.

5. For middle class elite paranoiacs in media, politics and societies – it is sufficient for them to hear the word “bomb”, and they easily visualise the image of “two bearded men in black kurta-pyjamas” planting bombs. It is obvious!

6. Next day, every TV news channel showed and glorified the “spirit of Delhi” as heroic since it was back to normal – people without livelihood security swarming through the streets…

Terrorism and anti-terrorism in India


In India there has been a growing demand from political, media and business elites for stringent ANTI-TERROR legislation. In their pursuit to repress their own fear, they demand fear among the public so that the public doesn’t terrorise the masters. At opportune moments and places, to aid them (one can never tell whether there is conscious mutuality or not) we have ghastly incidences like yesterday’s in Delhi, or earlier this year’s in the BJP run states. Such incidences effectively create a required legitimation for such McCarthyite demands. You need to just watch the tv news channels with their distinguished guests and “ex”s from politics, police-military bureaucracy and new ‘security intellectuals’ who unabashedly demand repressive laws to control their own fear and create fear among the “faceless” “terrorists”.

Probably matters of coincidence – in the morning of the tragic day we read about “the UPA government speaking in different voices over the need for enacting tough anti-terror laws by the States”. The government’s National Security Adviser M.K. Narayanan openly favours the Gujarat government’s proposal for a state law against “terrorism”. And there was a considerable coverage on the opposition party’s three-day conclave which was entitled “Terrorism to be the BJP’s major poll plank”. The party leader Rajnath Singh said that “only after Advani becomes Prime Minister will there be a decisive initiative”. And in the evening there are blasts throughout Delhi. What a day-case for anti-terrorism.

If you are conscious of the material organisation of newspapers and media reporting, you will find this pattern repeated daily.

—————-
US Supreme Court Justice Brandeis while disagreeing with the Court’s analysis in upholding a conviction for aiding the Communist Party in Whitney v. California (1927) (though concurring with the disposition of the case on technical grounds), made the most brilliant case possible within a liberal democratic framework against fascistic ideologico-legal regimentation:

Those who won our independence… knew that order cannot be secured merely through fear of punishment for its infraction; that it is hazardous to discourage thought, hope and imagination; that fear breeds repression; that repression breeds hate; that hate menaces stable government; that the path of safety lies in the opportunity to discuss freely supposed grievances and proposed remedies; and that the fitting remedy for evil counsels is good ones. Believing in the power of reason as applied through public discussion, they eschewed silence coerced by law — the argument of force in its worst form. Recognizing the occasional tyrannies of governing majorities, they amended the Constitution so that free speech and assembly should be guaranteed.

Fear of serious injury cannot alone justify suppression of free speech and assembly. Men feared witches and burned women.