tag:blogger.com,1999:blog-77789922024-03-14T16:57:39.396+05:30Seriously into Nonsensefew serious thoughts, some reminiscences, but mostly babbleUnknownnoreply@blogger.comBlogger121125tag:blogger.com,1999:blog-7778992.post-51143309709108507122019-07-28T11:39:00.000+05:302019-07-28T11:39:18.424+05:30Powers of a conman<div dir="ltr" style="text-align: left;" trbidi="on">
On this lazy, sunny Sunday morning, I got down to watching some TED talks. One ted talk that I liked especially was <i>The Superpower of the Conman </i>by Alexis Conran. Conran argues that magicians, conmen, politicians, and salesmen, all use a singular strategy: they sell you a story. They sell you a narrative. The TED talk can be perused here:<br />
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<iframe width="320" height="266" class="YOUTUBE-iframe-video" data-thumbnail-src="https://i.ytimg.com/vi/wF5CE2zrATc/0.jpg" src="https://www.youtube.com/embed/wF5CE2zrATc?feature=player_embedded" frameborder="0" allowfullscreen></iframe></div>
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Conran argues that there are five basic strategies that these actors use to sell you their products, or to deceive you. A good strategy usually contains 2 or more of these basic strategies:<br />
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1. Misdirection<br />
2. Time pressure<br />
3. Opportunity or good deal syndrome<br />
4. Social compliance<br />
5. Social proof<br />
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Conran uses this concept to explain how fake news manage to drive our narratives by misdirecting on social networks; how husslers make you behave how they want you to.</div>
Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-7778992.post-30912466952150309482015-11-12T22:36:00.003+05:302015-11-12T22:38:31.634+05:30Election duty in Patna<div dir="ltr" style="text-align: left;" trbidi="on">
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I am back in Bangalore after almost three weeks in Patna as an expenditure observer in Bihar elections. This was the third time I was an observer during elections, after my stints in Delhi and Bangalore. Many officers are reluctant to go on observer duty, but I personally view election duty as an honour bestowed by our glorious democracy to be a small clog in its wheel. I have learnt a lot from the various election duties I have participated in, both as an observer and as income tax nodal officer.<br />
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I had written a small piece on the election expenditure monitoring mechanism, while in Patna, and it has been published by the prestigious web journal, Indiatogether.org. A link to this article can be found below:<br />
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<span style="color: #0000ee;"><u><a href="http://indiatogether.org/challenges-before-the-election-commission-government">http://indiatogether.org/challenges-before-the-election-commission-government</a></u></span><br />
<span style="color: #0000ee;"><u><br /></u></span>
On a different note, Patna surprised me. The narrative on Bihar is, to a large extent, exaggerated in a disparaging sense. The state has decent roads and decent infrastructure. Electricity is a problem; there are frequent power cuts and many villages in the vicinity still lack an electricity connection. But the situation is not as bad as my friends from Bihar make me believe it to be. Nalanda and Rajgir are resplendent with ancient ruins and modern Buddhist stupas.<br />
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<table align="center" cellpadding="0" cellspacing="0" class="tr-caption-container" style="float: left; margin-right: 1em; text-align: left;"><tbody>
<tr><td style="text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjYAY04TuRW19QSethOEuYHdHS9NC9R1UZ9rJFbL-UWEU6j987UxJCsGOGTyBcvDtV_FR4stwobnGvaD5qYrNOoTl2opxgosZxSiC0_T9F_fmy2msJotnNCbxVuK6ziA-8TAYdd/s1600/DSCN0150.JPG" imageanchor="1" style="margin-left: auto; margin-right: auto;"><img border="0" height="240" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjYAY04TuRW19QSethOEuYHdHS9NC9R1UZ9rJFbL-UWEU6j987UxJCsGOGTyBcvDtV_FR4stwobnGvaD5qYrNOoTl2opxgosZxSiC0_T9F_fmy2msJotnNCbxVuK6ziA-8TAYdd/s320/DSCN0150.JPG" width="320" /></a></td></tr>
<tr><td class="tr-caption" style="text-align: center;">A memorial to Hiuen Tsang built as a symbol of Hindi-Chini bhai bhai</td></tr>
</tbody></table>
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<table cellpadding="0" cellspacing="0" class="tr-caption-container" style="float: left; margin-right: 1em; text-align: left;"><tbody>
<tr><td style="text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj1I21c2-HyIpg857ONubXP_xzzSLBWI6v5K300bKem9aOClNKsMwtr8A1pI1fktpIgnv-uRmG4z3P2Ey6g__85Kame1B_HN60lI36sgQdGulolLsM1hELn8V-MCU1vwXielNUi/s1600/DSCN0141.JPG" imageanchor="1" style="clear: left; margin-bottom: 1em; margin-left: auto; margin-right: auto;"><img border="0" height="300" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj1I21c2-HyIpg857ONubXP_xzzSLBWI6v5K300bKem9aOClNKsMwtr8A1pI1fktpIgnv-uRmG4z3P2Ey6g__85Kame1B_HN60lI36sgQdGulolLsM1hELn8V-MCU1vwXielNUi/s400/DSCN0141.JPG" width="400" /></a></td></tr>
<tr><td class="tr-caption" style="text-align: center;">The legendary travelogue writer, Hiuen Tsang</td></tr>
</tbody></table>
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Unknownnoreply@blogger.com2tag:blogger.com,1999:blog-7778992.post-11243158131225761352015-09-19T10:11:00.002+05:302015-09-19T10:11:55.891+05:30Globalisation and tax laws at IMT Hyderabad<div dir="ltr" style="text-align: left;" trbidi="on">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj19wgRehy4rZaBs1vfykGd6xfUoxZHJ7OtB50Z5alGdQfzb_Qof28_Rp7YFI_C7y5jhH8RnbFb62CEWTYK5RlT5UhOwsSGkf2GXdlnh9kDScI7mQhK3dlTtamRZb1UWaqCB2U4/s1600/IMG_2949.webp" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img border="0" height="133" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj19wgRehy4rZaBs1vfykGd6xfUoxZHJ7OtB50Z5alGdQfzb_Qof28_Rp7YFI_C7y5jhH8RnbFb62CEWTYK5RlT5UhOwsSGkf2GXdlnh9kDScI7mQhK3dlTtamRZb1UWaqCB2U4/s200/IMG_2949.webp" width="200" /></a>I had been invited for a guest lecture at Institute of Management Technology (IMT), Hyderabad for a guest lecture on the 10th of September, 2015, followed by one at Indian School of Business (ISB), Hyderabad on the 11th. It was my friend and classmate Sailendra Misra's idea. He is a high-flying researcher based out of Netherlands and India, and his wife, Prof Swati Panda, is associated with IMT.<br />
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<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg0TGAjc_pACucfz-TFa-G3rQTpzXI_MAfRsp-S9X63pMHi2B8PYRMjCMT5seVPwn9ZBEAMbIYuD6-b3OG80dU7JT0Izpg3kIeFHafWQwSWszYw6ye1kp8X9x7g08CHFCiRSNEB/s1600/IMG_2950.webp" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img border="0" height="133" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg0TGAjc_pACucfz-TFa-G3rQTpzXI_MAfRsp-S9X63pMHi2B8PYRMjCMT5seVPwn9ZBEAMbIYuD6-b3OG80dU7JT0Izpg3kIeFHafWQwSWszYw6ye1kp8X9x7g08CHFCiRSNEB/s200/IMG_2950.webp" width="200" /></a></div>
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The stated purpose of these lectures was to analyse globalisation from the perspective of regulation and ethics, and juxtapose globalisation against rise in international laws. It is fascinating that in a time of open and porous borders, nations are facing an existential threat. The threat is to their sovereignty; not from external aggression but from the need to formulate uniform international laws. The idea of a sovereignty is that a sovereign nation can make laws and regulate within its boundaries, <i>independent</i> of any external element. Rise of international laws in the fields of trade, taxation, and terrorism (the three 't's) has led to renegotiation of the scope of sovereignty.<br />
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgXo8dekle2NK5tNhxeKWhHy_EuqMeTmtby9xtAm-vutQAQLg9crF2B6snqpFY4aKIUNrcoxtqYL2VJBvUpZyEUYWrkESQNVznLAgXJoLPt39WPMp4MW9kxiOu3kObLt8Ux64Ru/s1600/IMG_2951.webp" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img border="0" height="133" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgXo8dekle2NK5tNhxeKWhHy_EuqMeTmtby9xtAm-vutQAQLg9crF2B6snqpFY4aKIUNrcoxtqYL2VJBvUpZyEUYWrkESQNVznLAgXJoLPt39WPMp4MW9kxiOu3kObLt8Ux64Ru/s200/IMG_2951.webp" width="200" /></a>Corporates have become multi-national, and are taking benefits of loopholes in global regulation. Terrorists, launderers, and druglords have gone multi-national; they run their businesses in one country and operate from another. Nations have realised that they have no option but to go multi-national. However, in the process of going multi-national, nations are losing their power to make laws. National laws are increasingly based on rules framed by organisations formed out of cooperation among nations.<br />
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhXBLAEO0lFUY85dS5-nEUfIoUFb2P5gGEK6i7T97LDoIXfsDcwMsKlwlfETmw9OLErKtxUuPBKsxJfU43HrELq6gQ5bxvZx5ixoHApgK8A8YDeMDW-6tEKlrUElBdl-Noevalf/s1600/IMG_2952.webp" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" height="133" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhXBLAEO0lFUY85dS5-nEUfIoUFb2P5gGEK6i7T97LDoIXfsDcwMsKlwlfETmw9OLErKtxUuPBKsxJfU43HrELq6gQ5bxvZx5ixoHApgK8A8YDeMDW-6tEKlrUElBdl-Noevalf/s200/IMG_2952.webp" width="200" /></a></div>
My inference, from the trends, is that very soon we will have clusters of countries rather than countries. The nation is going to turn into a province and a cluster is going to behave like a sovereign. This is actually already happening in the European Union. South-East Asian countries have also managed to form a trade cluster, and may turn into a cluster any day now to counter Chinese bullying in South China Sea. Arabian countries are on the verge of turning into a cluster. Larger countries like China, India, US, and Russia will maintain their independent stance, although much of their sovereign powers is destined to be eroded.<br />
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjve2WX_NIHYrdRMxBVyG1V1FY620jrBKxxVZy1Ee1baRx8rLCV9R8oj1bUkM6ARhmo-Y1LzLwSVNZ4t4RjTyG0spPoktnfEjacu1s8bRv2N3JZTfxluGFnfPfWv87qNBirDrx5/s1600/IMG_2963.webp" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="213" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjve2WX_NIHYrdRMxBVyG1V1FY620jrBKxxVZy1Ee1baRx8rLCV9R8oj1bUkM6ARhmo-Y1LzLwSVNZ4t4RjTyG0spPoktnfEjacu1s8bRv2N3JZTfxluGFnfPfWv87qNBirDrx5/s320/IMG_2963.webp" width="320" /></a></div>
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The lecture in gave in IMT, Hyderabad mostly pertained to international finance and international tax regulations. IMT has an amazing campus and I found the students smart and intuitive. I myself learnt new angles to the topic I was discussing in the course of my interaction with them. Overall, it was a great experience for me.<br />
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Unknownnoreply@blogger.com4tag:blogger.com,1999:blog-7778992.post-91627735786730094622015-09-17T01:07:00.000+05:302015-09-17T10:36:25.559+05:30Concept of fiscal policy<div dir="ltr" style="text-align: left;" trbidi="on">
<span style="font-family: Trebuchet MS, sans-serif;"><br /></span>
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<span style="font-family: Trebuchet MS, sans-serif;">There is always a risk in simplifying economics beyond an extent: the risk of ignoring the nuances. Probably this is the reason why fiscal policy is often clouded in figures and jargons. However, fiscal policy is damn simple to understand and comprehend. Fiscal policy, in fact, follows from some elementary mathematics and accounting.</span></div>
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<div style="text-align: justify;">
<span style="font-family: Trebuchet MS, sans-serif;">Say, a family of six members - Father, Mother, Ram, his wife Sita, his brother Hari, and his daughter Geeta - constitute an organisation. The organisation may be called a Hindu Undivided Family (HUF). Ram earns an income, so does Hari. No one else earns an income from any source outside the family. But there are expenses: medical expenses, daily ration, rent, studies of Geeta etc. At the end of the year, an accountant states that the HUF is in <i>surplus </i>if its income is more than expenses. The HUF is in <i>deficit </i>if its income is less than expenses.</span></div>
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<div style="text-align: justify;">
<span style="font-family: Trebuchet MS, sans-serif;">Now substitute the HUF with a country, say Pakistan. Pakistan is in <i>surplus </i>if its revenue is more than its expenses. It is in <i>deficit </i>if its revenue is less than its expenses. What are the sources of revenue for Pakistan? Pakistan does not get salary like Ram or Hari. It gets its revenue from <i>taxes</i>, <i>profits from PSUs</i>, <i>aid from US, UN </i>etc, <i>donation from middle east to spread terrorism </i>etc. Its expenses are on the <i>army</i>, <i>defence</i>, <i>terror funding</i>, and to some extent, in education, health (allegedly), and running terror camps.</span><br />
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<blockquote class="tr_bq" style="text-align: center;">
<span style="color: red; font-family: Trebuchet MS, sans-serif;">REVENUE = TAXES + NON-TAX REVENUES</span></blockquote>
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<span style="font-family: Trebuchet MS, sans-serif;">Naturally, the revenue of Pakistan would not be sufficient to meet the expenditure requirements of the country. Same is the case with most countries. The expenses tend to be more than revenue. As a result, the country has a <i>deficit</i>. This is called the fiscal deficit.</span></div>
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<div style="text-align: justify;">
<span style="font-family: Trebuchet MS, sans-serif;">Now, how does a country finance its deficit? Continuing with the earlier example, if Geeta cracks the CAT examination and gets an admission into an IIM, her father has to shell out some 30 Lakhs for her studies. Till now (say), the family consumed all that it earned. There was neither a surplus nor a deficit. But in order to get Geeta a MBA degree, Ram and Sita have to spend more than they earn. How? By taking a loan. Hence, deficit in HUF account is financed by debt. Similarly, fiscal deficit of a country is funded by debt.</span></div>
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<div style="text-align: center;">
<span style="color: red; font-family: Trebuchet MS, sans-serif;">EXPENSES - REVENUE = FISCAL DEFICIT</span></div>
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<div style="text-align: center;">
<span style="color: blue; font-family: Trebuchet MS, sans-serif;">TOTAL DEBT = SUMMATION (FISCAL DEFICITS of all FYs) + INTEREST - REPAYMENTS</span></div>
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<div style="text-align: justify;">
<span style="font-family: Trebuchet MS, sans-serif;">Debt and deficit are two primary concepts in understanding fiscal policy. Debt is a liability on the nation. It has to pay back the debt with interest one day or the other. More the deficit, more the cumulative debt. Then the next question arises, why can't a country exercise fiscal discipline and restrict government spending? If government spending is restricted, deficit won't be there. If deficit won't be there, there will be no debt. <i>Isn't it?</i></span></div>
<span style="font-family: Trebuchet MS, sans-serif;"><i><br /></i></span>
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<div style="text-align: left;">
<span style="font-family: Trebuchet MS, sans-serif;"><i><b>Government expenditure</b></i></span></div>
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<span style="font-family: Trebuchet MS, sans-serif;"><br /></span>
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<div style="text-align: justify;">
<span style="font-family: Trebuchet MS, sans-serif;">In order to appreciate the importance of deficit, we need to revisit the HUF we discussed earlier. Geeta can not get her MBA degree from IIM without a loan. The family does not have enough cash to pay for her degree. But if a loan is taken for her education, she would study for 2 years and earn ten times more than the loan amount in the next decade or so. The loan is used for <i>productive </i>purpose. Similarly, my personal observation about middle class families is that they are of three types:</span></div>
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<span style="font-family: Trebuchet MS, sans-serif;"><span style="color: purple;">Type 1:</span> The couple is too conservative and spends only within its means. Such a couple keeps savings in the form of bank deposits. </span></div>
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<div style="text-align: justify;">
<span style="font-family: Trebuchet MS, sans-serif;"><span style="color: purple;">Type 2:</span> This couple is spendthrift. The family has a habit of spending on high life, fashion, movies, and other items of conspicuous consumption. This family takes loans for luxury items such as AC, fridge, flat screen TV etc</span></div>
<span style="font-family: Trebuchet MS, sans-serif;"><br /></span>
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<div style="text-align: justify;">
<span style="font-family: Trebuchet MS, sans-serif;"><span style="color: purple;">Type 3:</span> This couple also takes loan like Type 2. However, the couple uses the loan to purchase gold or land or flat or other wealth-generating assets.</span></div>
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<div style="text-align: justify;">
<span style="font-family: Trebuchet MS, sans-serif;">On analysis, Type 1 family has a <i>surplus</i>. Type 2 and Type 3 families have a deficit at the end of the year. However, on making an economic analysis, Type 3 outshines the other two. Type 2 family is doomed to fall into a debt trap, and hence is unsustainable. Type 1 family is <i>just </i>sustainable. It makes a surplus and keeps it in bank. Bank pays an interest rate of 6%. Inflation is (say) 5%, thus eroding the value of money kept in bank by 5%. Hence net actual interest is merely 1% (6% - 5%). Type 1 family got fooled by the advertisements of banks boasting of 6% interest rate, whereas real interest rate is just 1%.</span></div>
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<div style="text-align: justify;">
<span style="font-family: Trebuchet MS, sans-serif;">Type 3 family, on the other hand, took loan to create assets that appreciate at a rate of 20% to 50%. Also, assets like houses and flats will generate more income once completed. Type 3 family also spends on kids' education, so that they grow up to become qualified professionals and generate more income. Type 3 makes more sense than Type 2 or Type 1. This classification has been termed by economists as <i style="font-weight: bold;">smarak swain's elementary economics of Indian middle class</i>. </span></div>
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<div style="text-align: justify;">
<span style="font-family: Trebuchet MS, sans-serif;">Narcissism apart, this classification has important ramifications to understand the salaried class. It helps you identify which middle class families become upper middle class in a generation, and upper class in few generations. It helps you explain why some middle class families remain stagnant in their social class. It also explains reverse social mobility, i.e. why some middle class families become lower middle class, and may even reach to bottom of the social pyramid in few decades.</span></div>
<span style="font-family: Trebuchet MS, sans-serif;"><br /></span>
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<div style="text-align: justify;">
<span style="font-family: Trebuchet MS, sans-serif;">Hence, taking loans is good. Its not always good, but under certain conditions. Same is the case with government expenditure. After all, government expenditure is a vital part of GDP (refer my <a href="http://smarak.blogspot.in/2015/09/economic-growth.html">discussion on GDP</a>). Government expenditure in Pakistan can be both productive and unproductive. The massive spends on maintaining salaries and perks on army officers - virtual rulers -is unproductive. The excessive expenditure in stealing nuclear and propulsion technologies from the West are unproductive, as India has better things to do than engage in a conventional warfare with it. The expenditure in running terror camps, on the other hand, is productive. Pakistan trains its citizens in suicide bombing, cyber crimes, piloting aircrafts and bulldozing buildings etc. Such training enhances the human resources of its trainees. These trainees then get gainfully employed in the terrorism industry, not only in Pakistan but also in other countries under the Global Jehad banner, thus contributing to national domestic product.</span><br />
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<div class="separator" style="clear: both; text-align: center;">
<span style="clear: right; float: right; font-family: Trebuchet MS, sans-serif; margin-bottom: 1em; margin-left: 1em;"><a href="http://www.google.co.in/imgres?imgurl=https://www.aei.org/wp-content/uploads/2013/04/confusing-cause-and-effect-in-the-fiscal-policy-debate.jpg&imgrefurl=https://www.aei.org/publication/confusing-cause-and-effect-in-the-fiscal-policy-debate/&h=282&w=446&tbnid=GMrthqBS9Oyg8M:&docid=PIW6vFiYFbbKFM&ei=E8X5VabcK8-QuASmmbvACA&tbm=isch&ved=0CIoBEDMoTzBPahUKEwjmsaD7pvzHAhVPCI4KHabMDog"><img border="0" height="202" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhv_BCS57oEJIz6jGe6qtP5iRMoginEhDHy4cH54f4OxRSel11AE0T-QTagK5ZFaaA2ylbZL8SCLw4A3DgdaihoFRKRK35U4GbKoqzez4sMNG6uhvsarY70iGPXz-0HZiU5CYqm/s320/qwer.jpg" width="320" /></a></span></div>
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<span style="font-family: Trebuchet MS, sans-serif;"><br /></span>
<b><i><span style="font-family: Trebuchet MS, sans-serif;">When is debt good?</span></i></b><br />
<span style="font-family: Trebuchet MS, sans-serif;"><b><i><br /></i></b>
</span><br />
<div style="text-align: justify;">
<span style="font-family: Trebuchet MS, sans-serif;">By now it is clear that debt is a double-edged sword. Debt can be good for a country at times, and bad at other times. How exactly can debt be good for a country? The answer to this question should be guiding light of public policy and every budget. In his book <i>The death of money</i>, James Rickards mentions three conditions:</span></div>
<span style="color: #38761d;"><span style="font-family: Trebuchet MS, sans-serif;"><br /></span>
</span><br />
<ol style="text-align: left;">
<li><span style="color: #38761d; font-family: Trebuchet MS, sans-serif;">The benefits of government spending must be greater than the cost incurred</span></li>
<li><span style="color: #38761d; font-family: Trebuchet MS, sans-serif;">Government spending should be directed at projects the private sector cannot do on its own</span></li>
<li><span style="color: #38761d; font-family: Trebuchet MS, sans-serif;">Overall debt level should be sustainable</span></li>
</ol>
<div style="text-align: justify;">
<span style="font-family: Trebuchet MS, sans-serif;">These three tests, says Pickards, must be applied independently and all three should be satisfied. I believe these three conditions provide an analytical tool to examine any government scheme. Lets make an attempt (statutory warning: economics is definitely more complex than this; so the conclusions drawn may be erroneous):</span></div>
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<span style="font-family: Trebuchet MS, sans-serif;"><br /></span></div>
<div>
<ul style="text-align: left;">
<li style="text-align: justify;"><span style="font-family: Trebuchet MS, sans-serif;"><b>NREGA:</b> The benefits of government spending are definitely less than the costs incurred. Rather than make an attempt at providing social security to the poor, the government merely increased expenditure. Minimum wages were set, due to which rural labour became idle and incompetent. NREGA did help some who were living below subsistence level. But on an overall, it promoted people making a meaningful living to sustain on NREGA wages. Hence it was wasteful spending, and could have been avoided to reduce fiscal deficit.</span></li>
</ul>
<ul style="text-align: left;">
<li style="text-align: justify;"><span style="font-family: Trebuchet MS, sans-serif;"><b>Midday meal scheme:</b> Any scheme meant to support and promote education is welcome. The benefits are more than costs. One may criticise such a program on its implementation, but government spending cannot be criticised.</span></li>
</ul>
<ul style="text-align: left;">
<li style="text-align: justify;"><span style="font-family: Trebuchet MS, sans-serif;"><b>Government schools & hospitals:</b> Government spends a vital amount in running schools and hospitals. It makes sense. Benefits are more than costs in terms of citizen welfare. Also, pribate sector cannot do it on its own. Government schools can be found in remote villages, villages where private sector would not find it profitable to open schools. Schools and dispensaries for the poor are again the responsibility of government as private sector cannot do it on its own</span></li>
</ul>
<ul style="text-align: left;">
<li style="text-align: justify;"><span style="font-family: Trebuchet MS, sans-serif;"><b>Running Indian railways:</b> Indian railways are running at a heavy loss consistently. Significant innovations in logistics, goods carriages, and luxury class travel could be made by the private sector. Government may need to remain only to facilitate general class travel for the poor. Hence a major part of railways should be outsourced to the private sector. Significant expenditure incurred by government on maintaining railways could be cut this way</span></li>
</ul>
<ul style="text-align: left;">
<li style="text-align: justify;"><span style="font-family: Trebuchet MS, sans-serif;"><b>Running Air India:</b> By the above logic, Air India should also be privatised. Many columnists are voicing this opinion these days. But I beg to differ. A government-run airlines is necessary to prevent <i>cartelisation</i> by the private sector. Without a government-run airlines, private airlines may collude and increase costs to the detriment of customers. There is also a security angle involved here. See... economics is not as simple as I projected it above. This argument is also valid for state-run power companies.</span></li>
</ul>
<div>
<span style="font-family: Trebuchet MS, sans-serif;">One of the three conditions mentioned above is that 'overall debt should be sustainable'. Sustainable debt is another topic altogether and I will deal with it in a separate blog post. I have quite a few back-to-back book readings of my book, <a href="http://www.amazon.in/The-Legend-Of-Yuck-Man-Volume/dp/9382665471">THE LEGEND OF YUCK-MAN</a>, lined up this weekend (the fact that I am getting only 'yucks' and brickbats for writing the book has not tempered my publicity drive). I shall make an attempt to explain debt-to-GDP ratio and consequences of unsustainable debt levels after the weekend. </span></div>
</div>
<span style="font-family: Trebuchet MS, sans-serif;"><br /></span>
<span style="font-family: Trebuchet MS, sans-serif;"><br /></span>
</div>
Unknownnoreply@blogger.com4tag:blogger.com,1999:blog-7778992.post-56414957558080887172015-09-05T12:03:00.004+05:302015-09-05T16:33:05.904+05:30The concept of economic growth<div dir="ltr" style="text-align: left;" trbidi="on">
<br />
The concept of growth is one of the most contentious subjects in academics. Left scholars have a different definition of growth, sociologist define it differently, so do environmentalists. Without resorting to cluttering of divergent concepts, I am making an attempt to define economic growth in simple terms. This definition is important for a series of articles I seek to write on geopolitics and national economy.<br />
<br />
Economic growth is, simply said, the growth in production. The index used by economists to value economic growth of a nation is the Gross Domestic Product (GDP). Share traders and investment bankers use other indices to determine economic growth. But then again, investment bankers are more concerned about future growth than present growth; hence their tools and equipments are more attuned towards speculation of economic growth in future. Here we will stick to GDP as an index of economic growth. GDP has four components, namely, consumption, investment, government spending, and net exports.<br />
<table align="center" cellpadding="0" cellspacing="0" class="tr-caption-container" style="margin-left: auto; margin-right: auto; text-align: center;"><tbody>
<tr><td style="text-align: center;"><span style="margin-left: auto; margin-right: auto;"><a href="http://www.google.co.in/imgres?imgurl=http://image.wikifoundry.com/image/1/bIL3kwUL_RujvA62FpwNpw24756/GW650H348&imgrefurl=http://ismgeof.wikifoundry.com/page/GDP%2B(PPP)%2Ban%2Bexplanation%2B%2526%2Bevaluation&h=348&w=640&tbnid=cOHzHezZTdsj_M:&docid=TCZvqTKr-I7oqM&ei=A4LqVYudJsjGuATD-by4DQ&tbm=isch&ved=0CD8QMygPMA9qFQoTCMuq7_KY38cCFUgjjgodwzwP1w"><img border="0" height="174" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhJD0bqP5nxhyphenhyphen4nCskvk4QF2Nr5iVYZnN_r2zUJ0780wLiR6ywc9ZCbHPlyFwCOdNh7Dm034fPZQzVgAdh24NYsHmOb1CzVBLB4kKdeLEkAybCp167QtlWoUAF-1PsUpBdPHvNt/s320/gdp.jpeg" width="320" /></a></span></td></tr>
<tr><td class="tr-caption" style="text-align: center;"><a href="http://www.google.co.in/imgres?imgurl=http://image.wikifoundry.com/image/1/bIL3kwUL_RujvA62FpwNpw24756/GW650H348&imgrefurl=http://ismgeof.wikifoundry.com/page/GDP%2B(PPP)%2Ban%2Bexplanation%2B%2526%2Bevaluation&h=348&w=640&tbnid=cOHzHezZTdsj_M:&docid=TCZvqTKr-I7oqM&ei=A4LqVYudJsjGuATD-by4DQ&tbm=isch&ved=0CD8QMygPMA9qFQoTCMuq7_KY38cCFUgjjgodwzwP1w">GDP </a></td></tr>
</tbody></table>
<br />
See: understanding GDP is not all that difficult. It is a mere formula. Lets say our statisticians find GDP for FY 2013-14 to be a big X. Then they find the GDP for FY 2014-15 to be 1.06X. Then the growth in GDP is 6%. What most readers from a non-economic background do not understand is, what is growth? How does economic growth happen? What is the dynamics behind growth? What is the dynamics behind the figures Economic Times and Financial Express throw around?<br />
<b><br /></b>
<b>Concept behind the jargons</b><br />
<br />
Yes, of course there is a concept behind the figures and jargon. There is always a concept behind these figures and the concept is usually pretty simple. Minus the jargon and figures, economics is quite simple. I present the concept in the following logical sequence:<br />
<br />
1. Economic growth is growth in production<br />
2. Production depends on <i>labour</i> and <i>assets</i> such as machines and land<br />
3. Growth in production results from <i>increase in labour force</i> and <i>productivity</i><br />
4. Increase in labour force depends on <i>demographics</i> (numbers) and <i>education</i> (skills)<br />
5. Productivity depends on <i>capital</i> and <i>technology</i><br />
6. Hence, the factors on which growth in production depends, or rather the <i>factors of production</i>, are demographics, education, capital, and technology.<br />
<br />
Economic growth is as simple as above. Yet, many lawmakers, policy formulators, and bureaucrats go crazy trying to imagine how economic growth happens.<br />
<br />
Many ideas and opinions that are aired in newspapers on economy derive from this elementary concept. Few of these are:<br />
<br />
<ol style="text-align: left;">
<li> <b>Population growth</b> was perceived as a national liability in the 1970s when India had taken a definitive socialist turn; but now it is being seen as an asset, a demographic dividend. India <i>exports</i> skilled as well as unskilled labour to South-East Asia, Africa, and Middle East, among other regions. Rise in exports increases GDP. Similarly, MNCs are outsourcing their business processes to sweatshops in Bengaluru and Hyderabad. These sweatshops are <i>exporting </i>services. </li>
<li>Then why was population a liability all this time? Because India was following a socialist economic model whereby the country had insulated itself from foreign trade in goods and services. Demographics is the percentage of population in working age group. India happens to have a healthy ratio of persons in working age group and those not in working age group (senior citizens and kids). Hence, India has ready supply of labour.</li>
<li>China - always in a hurry to grow economically - seems to have not understood this basic concept and has been religiously following a one-child policy since 1978. Its demographics is screwed, and from what it appears, its economy is also screwed. The communist party has, however, hidden the screw-up behind superfast trains, high rises and ghost cities.</li>
<li>Demographics will be counter-productive if labour force does not have enough education and skills. Without education and skills, the labour force could not be gainfully employed. Take the case of Saudi Arabia, for instance. The autocratic rulers did not introduce modern education and training for a long time, owing to which there was acute unemployment even though there was a demand from petrochemical companies for skilled engineers. These jobs then went to expats. Hence, human resource development is crucial to economic growth.</li>
<li>Why is there so much focus on <b>foreign investment</b>? We seem to be pampering investors a lot. We abandon MAT on FIIs, we forgo tax litigation on MNC giants, and brainstorm on creating a suitable 'investor climate'. Why? This is because foreign investment brings in <i>capital</i>. Capital is needed for growth. Whether foreign investment actually brings in capital is a different debate.</li>
</ol>
<br />
PS: Would you call my book, <i><a href="http://www.amazon.in/The-Legend-Yuck-Man-Smarak-Swain/dp/9382665471">The Legend of Yuck-Man</a></i>, a contribution to national GDP? Why, of course! I have laboured over it. My publisher has invested its capital and laboured to distribute it.<br />
<br /></div>
Unknownnoreply@blogger.com11tag:blogger.com,1999:blog-7778992.post-6528088020104853372015-08-03T08:34:00.001+05:302015-08-03T08:37:20.331+05:30Insights into book marketing strategies<div dir="ltr" style="text-align: left;" trbidi="on">
<br />
THE LEGEND OF YUCK-MAN is now published and available in all major e-commerce websites. It is yet to come to brick & mortar bookstores, but I am told that it would be in major bookstores in less than a week. This post is about book marketing strategies and my experience with these.<br />
<br />
<b>VENDORS & DESPERADOS</b><br />
<br />
The market for commercial fiction in India is extremely competitive. Everyone in India seems to have something to say but few people have the patience to hear. As a result, the market is flooded with thousands of books. With the number increasing every passing month, the shelf life of a book in bookstores is decreasing. Online marketing through FB and Twitter, as a result, have become the order of the day. Online marketing makes sense, but I found many strategies used for online marketing flawed and a wastage of money.<br />
<br />
The moment I put the front cover of my book on Facebook, I got few friends' requests from vendors of e-marketing packages. These vendors scout for writers desperate to improve the visibility of their book and promise way more than they can do. Many of these vendors tailor their packages to suit self-published writers. After being flooded by e-marketing offers, I tried to analyse what they basically do. They basically boost the visibility of your book's FB fan page and increase the number of 'likes'. The number of 'likes' determines the success of their publicity campaign. They charge you for this.<br />
<br />
The number of 'likes' on FB, however, is not a measure of effective publicity. We are bombarded by innumerable such fanpages on a daily basis, and we do not hesitate from liking these pages. The real challenge of effective marketing is to (A) market the book to a target audience, and (B) make few of them purchase the book. Increasing likes in FB does not make sense. One can reach a thousand likes just by forwarding the fanpage link on Whatsapp and claiming it to be full of sleaze, or containing controversial gossip. The thousand odd likes are, in the ultimate analysis, useless.<br />
<br />
FB itself offers advertisement opportunities to boost visibility of a page. It takes some keywords from you and uses data analytics to reach a target readership. Google also does something similar on open internet through its Adwords programmes. They are quite effective, and better than the vendors on FB claiming to be PR agents.<br />
<br />
<b>PR AGENTS</b><br />
<br />
Coming to <b>PR Agents </b>for reviews, news articles, and interviews in <b>newspapers </b>and <b>magazines</b>, there are quite a few. PR agents have been getting good remuneration from publicising bestselling books, and so the tribe is fast increasing. A freelance PR agent typically charges Rs. 1 Lakh for three months. I got in touch with few PR agents and I invariably got this price quoted by them. One lakh is a big sum, and committing to pay one lakh to a PR agent practically makes the writer an entrepreneur, and he/she has to bank on success of the book for getting his money back. I was not prepared to do this. My role as a writer and my publisher's role as the entrepreneur taking the risk of publishing the book was well cut out when we started. My publisher takes all risk and I only take the risk of being robbed by the bank when I present my royalty cheque. This should be the case with all writers who are not self-published.<br />
<br />
Having said this, its not bad to get some visibility in print media. Again, one does not need PR agents to do it. My logic is, identify few journos, talk to them, get contacts of book editors and book reviewers, and reach out to them. I have started doing that, although time will tell how successful such a strategy will be. For that matter, the PR agent also does not guarantee you of confirmed number of book reviews or coverage. On the contrary, many journalists are repulsed by PR agents. They would respond better if you yourself approach them.<br />
<br />
You can also approach tabloid magazines and business journals for visibility. It is not a bad idea. For example, Cafe Coffee Day comes out with a tabloid called "Cafe Chronicle". This tabloid has a shelf life of one month and is available in all CCD stores all over the country! Think about the consistent visibility if you can get featured in it! Similarly, Air India, IndiGo, Spice Jet etc have their own monthly tabloids that (about) 70% of the passengers read in idleness of flight-time. Targeting these magazines increases visibility manifold.<br />
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhFIV9vxgwrlVPsDJZ0gryXkhe7UaB8e1p9dkQU48k6AKbyB6SHBPEZCgOzh8nD_-5nqsjp4GfQTToKZe_iNjaOV8O5TST0NGCSY2lcwI9n0yGmg0GFZuIxhHtTS668lncRDVP8/s1600/YUCKMAN-FULL+COVER.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="320" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhFIV9vxgwrlVPsDJZ0gryXkhe7UaB8e1p9dkQU48k6AKbyB6SHBPEZCgOzh8nD_-5nqsjp4GfQTToKZe_iNjaOV8O5TST0NGCSY2lcwI9n0yGmg0GFZuIxhHtTS668lncRDVP8/s320/YUCKMAN-FULL+COVER.jpg" width="209" /></a></div>
<br />
<br />
<b>GROUP ACTIVISM</b><br />
<br />
Becoming active in groups is a good way of increasing readership. You can send interesting forwards and drop a link to your book page. You can make interesting cartoons that attract the members of the group/community. One such cartoon I made for publicity of my book is as under:<br />
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<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgTfGx3B9y8Bf3_T-RxKbqB_qTuT3j8Rb6nEQbEAb9FhRSUwpscAoD3TBQAxFynIaPPyJmUuBUgO54wGExa_1e9jrbOicUf8Sju8puBI9oRkKA9zLDJImOSYHvbjdbrunLTxiEZ/s1600/asd.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="240" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgTfGx3B9y8Bf3_T-RxKbqB_qTuT3j8Rb6nEQbEAb9FhRSUwpscAoD3TBQAxFynIaPPyJmUuBUgO54wGExa_1e9jrbOicUf8Sju8puBI9oRkKA9zLDJImOSYHvbjdbrunLTxiEZ/s320/asd.jpg" width="320" /></a></div>
<br />
<br />
Ajit Pal Singh Daia is a batchmate... I put this cartoon on my batch group and immediately attracted many towards my book. My earlier books were all non-fictions catering to UPSC civil service aspirants' needs. I have written a book on psychology, a book on sociology, and one on civil service exam interviews. My books have been well received by UPSC aspirants and I know they are confident of my writing. So I became active in UPSC preparation groups, giving advice and feeding interesting snippets on current affairs. I invariably drop a link to my book's Flipkart page.<br />
<br />
The result is quite evident. <u>My book managed to jump to rank 17 (of a total of 113) in popularity</u> on <a href="http://www.flipkart.com/legend-yuck-man-english/p/itme9a9ycfetymth?pid=9789382665472&srno=b_1&al=VI9czj2bJnLr4AhpPCo%2BXwzvTjgl7ULhfsIPt89MO3fsTxlFXFQzJoaLq2lx4bRfFLwHQxVDMNU%3D&ref=620ed474-90ef-4989-a42a-28f968f25db5">Flipkart's pre-order list</a>. This is no mean achievement, given that my name carries no brand value as a fiction writer. There is no reason for anyone to pre-order my book.<br />
<br />
CAMPAIGN STRATEGY<br />
<br />
The ultimate campaign strategy for any book, I believe, is to spread it by word-of-mouth. There is no better substitute to this. Unfortunately, most newcomers' books get drowned in the flood of new books coming out every month. That's why a writer needs publicity. Its a necessary evil. Once a book crosses sales of, say, 4000 copies in two months, it crosses a 'critical velocity'. After this the book will sell by itself from word-of-mouth created by these 4000 readers. IF THE BOOK IS GOOD. Its like a nuclear fission reaction, and the fission process can make you a bestseller.<br />
<br />
Most renowned authors do book readings in bookstores. I do not know the effectiveness of this strategy. I am not following this strategy as I am not a renowned author. Yet. Rather I have plans of giving lectures on psychology, sociology, genetics, taxation, finance, careers etc in colleges to increase my visibility.<br />
<br />
You must also take feedback from your publisher on the kind of readers, their demographics, their backgrounds etc. It helps you better market your book. Unfortunately such data is still unavailable.<br />
<br /></div>
Unknownnoreply@blogger.com2tag:blogger.com,1999:blog-7778992.post-52373774059209099852015-06-08T21:00:00.002+05:302015-06-10T18:08:53.087+05:30Merit over networking<div dir="ltr" style="text-align: left;" trbidi="on">
<br />
<div style="text-align: justify;">
Top posts in the government of India are ex-cadre posts; that is, anyone who fulfils basic criteria can be appointed for the posts. There are two kinds of basic criteria: experience in bureaucracy, and domain expertise. Unfortunately in India, domain expertise is not stressed. Domain expertise has been replaced over time by popularity and network of the person applying for the post.</div>
<br />
<b>Inviting leaders from private sector to lead PSUs</b><br />
<br />
<div style="text-align: justify;">
The present dispensation is, however, approaching appointments differently. Merit and domain expertise are being given preference over networks in government. One of the first acts of new policymakers after coming to power was to set new criteria for appointment of chiefs of PSU banks. For the first time, private bankers were invited to apply for these posts. The logic behind this is that a PSU bank employee is handicapped by his/her experience to perceive problems and strategies from the same angle that PSUs have traditionally been perceiving. Appointing such a person as <i>leader </i>of the bank does not enthuse the organisation with new energy; nor does it enhance creativity. Private bankers are equally specialised in banking, and have much better perspective, having competed in open markets with other bankers. This is merit.</div>
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjVXVtEp3qUUxO0tilinudxi9N_QH0P9OMTssUTf9IDfLXKjHtTnfXJ3wkH9KofgnYf6ORa9idxuPvNV1hLNcEsLd2RkluxlfRQhcKTwzXotw_SQUd_e9YuVdIPWCsfmLyuim7F/s1600/red+tape.jpeg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjVXVtEp3qUUxO0tilinudxi9N_QH0P9OMTssUTf9IDfLXKjHtTnfXJ3wkH9KofgnYf6ORa9idxuPvNV1hLNcEsLd2RkluxlfRQhcKTwzXotw_SQUd_e9YuVdIPWCsfmLyuim7F/s1600/red+tape.jpeg" /></a><a href="http://www.google.co.in/imgres?imgurl=https://egostino.files.wordpress.com/2010/08/red_tape.jpg&imgrefurl=http://imgsoup.com/1/red-tape-bureaucracy/&h=744&w=1050&tbnid=yCxO4QOa--x_uM:&zoom=1&docid=S072G5LIRCFqvM&ei=x7Z1VfatNKG5mAW52YLgBw&tbm=isch&ved=0CDoQMygSMBI">A representation of red tape</a></div>
<br />
<br />
<div style="text-align: justify;">
Another act of the policymakers in recent days was to question the very business model of Air India. Its a huge organisation, remarked one policymaker, without any vision for the future. Public or private, the motive of every business is to make profits. If an organisation does not profess this motive, it loses any motive to outperform competitors and provide quality service to customers. Hence, PSU or private, an airline cannot afford to run like a charitable institution. The MD of Air India is an officer of Indian Administrative Service (IAS). Although supermen, officers running local administration cannot run business. None of the MDs of other airlines - Indigo, Go air, Spice Jet, or Air Asia - has a background in local administration. They are people with enviable track record in leading huge corporations and administering Multinationals. Anyone can see through the illogic of appointing a bureaucrat to the post.</div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
Another case of selecting merit over networking or jugaad is that of appointment of Sri KV Chowdhury as Central Vigilance Commissioner. This is a man with impeccable record and a fantastic career. However when his name was being considered for the post of CVC, others trying to get to the post tried vilifying him by making few advocates to run a smear campaign on social media. The smear campaign failed because the statements made were not only factually wrong but also contradictory. KV Chowdhury was appointed as CVC on merits. My friend P. Satya Prasanth has beautifully summed the appointment as under:</div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
"<i><span style="background-color: white; color: #141823; font-family: helvetica, arial, 'lucida grande', sans-serif; font-size: 14px; line-height: 19.3199996948242px;">Shri. K. V. Chowdary, a 1978 batch IRS officer, is appointed by the Government of India as the next Chief Vigilance Commissioner (CVC). He is the former Chairman, Central Board of Direct Taxes (CBDT) and currently Advisor to the Special Investigation Team (SIT) investigating the foreign bank account (black money) cases. He is an excellent choice as a CVC. I worked under him as Deputy Director (Investigation) when he was Member (Investigation) and later Chairman of CBDT. He is</span><span class="text_exposed_show" style="color: #141823; display: inline; font-family: helvetica, arial, 'lucida grande', sans-serif; font-size: 14px; line-height: 19.3199996948242px;"> extremely honest, works for atleast 15 hours a day, his energy at this age rivals that of a young civil servant, he has a very strong personality, he doesn't bow to undue pressures, very intelligent and fully committed to any job he does.</span></i></div>
<div class="text_exposed_show" style="background-color: white; color: #141823; display: inline; font-family: helvetica, arial, 'lucida grande', sans-serif; font-size: 14px; line-height: 19.3199996948242px;">
<div style="margin-bottom: 6px;">
<div style="text-align: justify;">
<i>I am happy that for the first time merit was chosen over precedence, hegemony, unionism, arrogance, inefficiency and mediocrity in appointment of a CVC. This will augur well for the country... Everybody who knows or worked with Shri. Chowdary will vouch for his integrity. He is a man of unimpeachable integrity... </i><span style="line-height: 19.3199996948242px;"><i>I am fully confident that one will see a CVC that can be compared to the Election Commission under Shri. T. N. Seshan. One can also expect a lot of systemic changes in the working of CVC from now on. We can also expect that the pending files for action will start moving in CVC. A 4-year tenure as CVC to Shri. K.V.Chowdary will work wonders for the country. Hearty congratulations to my former superboss. Best of luck in your new assignment and god speed sir. The country has lot of hopes from you.</i>"</span></div>
</div>
<div style="margin-bottom: 6px; margin-top: 6px;">
<div style="text-align: justify;">
<br /></div>
</div>
<div style="margin-bottom: 6px; margin-top: 6px;">
<div style="text-align: justify;">
<b>Fairness and neutrality</b></div>
</div>
<div style="margin-bottom: 6px; margin-top: 6px;">
<div style="text-align: justify;">
Another fresh act of our policymakers has been its brutal resistance to any kind of pressure or enticements. Almost all ministries have now developed built-in systems to detect lobbyists and avoid them. Many individuals working in "corporate strategy" and "corporate communication" divisions of various corporates have a job profile of leaking and collecting privileged policy decisions. Recently the authorities clamped down on such acts of 'corporate espionage'. Some very influential corporate groups were involved.</div>
</div>
<div style="margin-bottom: 6px; margin-top: 6px;">
<div style="text-align: justify;">
<br /></div>
</div>
<div style="margin-bottom: 6px; margin-top: 6px;">
<div style="text-align: justify;">
It is not that the policymakers do not favour corporates. Business is important and critical to economic development, and every possible step is being taken to create a conducive environment for business. However, that does not mean that any businessman can expect preferential treatment: the policy is of strict neutrality. Take, for example, the severe penalties on Adani Gas and on certain auto companies by CCI in July 2014 and October 2014 respectively.</div>
</div>
</div>
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<br /></div>
Unknownnoreply@blogger.com3tag:blogger.com,1999:blog-7778992.post-63532151792046893622015-05-20T21:30:00.001+05:302015-09-16T23:37:15.971+05:30The Legend of Yuck-Man<div dir="ltr" style="text-align: left;" trbidi="on">
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjSdJnSBiW5MnkhnKEEwRao9nIO_FVo3E59frLmBJS-2gax6eYL_afmblPmYUM5Zwi5WTLIWx1qML1lzoKkgi1PptIQ8jccRyZdHccpEHCYPcHQLHNQoy3y-NXUmMxHLicfAPgA/s1600/Slide1.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="240" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjSdJnSBiW5MnkhnKEEwRao9nIO_FVo3E59frLmBJS-2gax6eYL_afmblPmYUM5Zwi5WTLIWx1qML1lzoKkgi1PptIQ8jccRyZdHccpEHCYPcHQLHNQoy3y-NXUmMxHLicfAPgA/s320/Slide1.jpg" width="320" /></a> </div>
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<b>The legend of Shitman </b>is now The Legend of Yuck-Man. The book is being published by Srishti Publishers & Distributors based in New Delhi. The book will be launched in September, 2015.</div>
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The Legend of Yuck-Man is a social satire and can also be identified with the pulp fiction genre. It is the story of how social apartheid can lead to serious consequences not only for the victim but also for the society at large. More on the book will be shared through this blog in days to come.</div>
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PS: [inserted on 16.09.2015] The book is now live and is available on the following links:</div>
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<a href="http://www.amazon.in/The-Legend-Of-Yuck-Man-Volume/dp/9382665471">Amazon link</a></div>
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<a href="http://www.flipkart.com/legend-yuck-man-english/p/itme9a9ycfetymth?pid=9789382665472&srno=b_2&al=VI9czj2bJnLr4AhpPCo%2BXwzvTjgl7ULhfsIPt89MO3eXqxxyl5LrU4aLq2lx4bRfFLwHQxVDMNU%3D&ref=14f82548-4e0e-496e-a9ff-eedb759bac75">Flipkart link</a></div>
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<a href="https://paytm.com/shop/p/the-legend-of-yuck-man-9789382665472_44319">Paytm link</a></div>
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Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-7778992.post-86739157266356566732015-05-20T20:42:00.000+05:302015-05-20T20:42:00.028+05:30What ails DRDO?<div dir="ltr" style="text-align: left;" trbidi="on">
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Defence Research & Development Organisation (DRDO) holds monopoly over research and development of defence technologies in India. While there have been small openings for the private sector in defence R&D, it is mostly a preserve of DRDO. DRDO is charged with the important function of indigenising defence equipments and making India self-sufficient in defence technology. Over the last few decades DRDO has come under immense criticism for its inefficiency in developing new technologies.</div>
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The clients of DRDO - army, airforce, and navy - have been quite reluctant in inducting various products of DRDO. They prefer defence armaments procured from other countries over the armaments designed by DRDO. India is largest importer of weapons and military equipments in the World, and its not an achievement. Many times products of DRDO take years to develop and yet the forces are sceptical of the product they get from DRDO. Tejas LCA, Arjun tanks, and many other projects have seen over-shooting of both timelines and budget.</div>
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In the face of what people call dismal performance, it is increasingly felt among many policymakers and commentators that private sector should be given a chance to compete with DRDO in indigenisation efforts. It is also felt that DRDO being a government organisation is <i>naturally </i>inefficient.</div>
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This argument, that it being a government organisation is <i>naturally </i>inefficient, is farcical and illogical. Those who make such comments have not actually gone into the field and analysed how DRDO functions. ISRO is another government organisation, under ownership of the same government, and has shown immense initiative and marvellous results. ISRO is one of the best space research organisations in the world. It has not only provided quality telecommunication support to its client (Govt of India) at an affordable rate, it has managed to go commercial outside the country. Now it is a major service provider for many third world countries.</div>
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Both DRDO and ISRO are manned by Indian scientists recruited from Indian universities. So what makes DRDO different from ISRO? I believe the answer lies in how the organisations function. The answer lies in organisational psychology.</div>
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Psychologist Frederick Herzberg had forwarded the <b>two factor theory </b>of employee satisfaction in the workplace. There are hygiene factors and motivators. Motivators give satisfaction to employees. Hygiene factors do not give satisfaction to employees but lack of hygiene factors leads to <i>dissatisfaction</i>. Hygiene factors include status, job security, work conditions, vacations etc. This is where DRDO might have gone awfully wrong. Since it is a R&D organisation, work output is basically a simple summation of output of its scientists. Scientists in DRDO join at an entry level grade pay of Rs. 5,400/- just like class-1 freshers in any other organised group-A service. However, promotions happen in other services and departments at regular intervals. In case of DRDO, promotion is contingent upon performance in an interview. Some scientists take 3 years for first promotion, others take 4 years, many others take 5 years for promotion. They have to face interviews on every promotion.</div>
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This is ironic since performance can be gauged for administrative jobs; hence promotions should be linked to performance and ability for those in administrative functions. Research is an altogether different ball game and we can get output only if the scientist is intrinsically motivated to find something new, which can happen only if the scientist does not have to bother about promotions. What happens in India is exactly the reverse of common wisdom: administrators are promoted without any test to gauge their ability whereas scientists of DRDO have to worry about getting a promotion in every 3-4 years.</div>
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The work atmosphere and salary of DRDO scientists are also lamentable. Having taken specialised education they join the government at the same rank and pay as a BA or B.Com student joins after clearing the civil service examination. One may argue that a candidate clearing the civil service examination is more meritorious since he/she has cleared a difficult exam. Such arguments only go on to show how lightly we take scientific research in this country. Salary of DRDO scientists is not at par with market value that their qualification would fetch in private sector. As a result most talented students join the private sector and only the ones with low aspirations join government service.</div>
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<tr><td style="text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjD2_GBmQXWRiKZbxP0WLUQKekbK8sRRJ9taoeiY4zOxvcToKAk1vWzvGOmDRbPUrYJZFBYs7ichRtHnOCRZY81o8-44WhrJcKTDRRbUevBix_rOi9ykUyJjmqpbmix9h3KnNJr/s1600/page0007_2.jpg" imageanchor="1" style="margin-left: auto; margin-right: auto;"><img border="0" height="190" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjD2_GBmQXWRiKZbxP0WLUQKekbK8sRRJ9taoeiY4zOxvcToKAk1vWzvGOmDRbPUrYJZFBYs7ichRtHnOCRZY81o8-44WhrJcKTDRRbUevBix_rOi9ykUyJjmqpbmix9h3KnNJr/s320/page0007_2.jpg" width="320" /></a></td></tr>
<tr><td class="tr-caption" style="text-align: center;"><a href="http://www.johnwiley.net.au/highered/management/istudy/menu/motivation_and_rewards/content_theories_of_motivation/?page=0007">Source</a></td></tr>
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All over the world scientists have high reputation and status in society. But in India scientists have very low social value. That's a major reason why graduates from IITs do not join DRDO but slog the UPSC examination to become civil servants. That's a major reason why PhD holders from IITs prefer to go abroad than work in DRDO. Same does not apply to ISRO because of the degree of autonomy given to ISRO. Given the sensitive nature of work of DRDO, it cannot be allowed to function independently. Yet efforts can be made to reduce their dissatisfaction and increase their satisfaction. It is very important to set right the hygiene factors of scientists at the workplace.</div>
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Unknownnoreply@blogger.com3tag:blogger.com,1999:blog-7778992.post-9041894890991277172013-01-01T15:21:00.000+05:302013-01-01T15:37:03.972+05:30My ANONYMOUS Blog<div dir="ltr" style="text-align: left;" trbidi="on">
Hiya friends<br />
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I had started this blog way back in 2004. Its been eight years now. And as you might have marked, I am not writing much in last 2-3 years. The blog has fallen into disuse. Reasons for this are:</div>
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a) Anything interesting happening in office or public life is either CONFIDENTIAL or CONTROVERSIAL. Anything that is not (say, an anecdote) becomes controversial once leaked out to public glare. Blogging is a dangerous terrain for civil servants.</div>
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b) Since I am a civil servant, there are certain proprieties of language and behaviour I am supposed to maintain. My personal life, ideas and crack language (as some refer to it: God knows what it actually means) will <i>expose </i>me.</div>
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But I wanna talk. I wanna share. I wanna discuss. I want to express. So on this date, the first of January, 2013, I am opening a new blog. This blog will be floated into the cyber-ocean under a pseudonym. You will find me unchained and unhindered.</div>
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This blog will be retained in its present form: primarily devoting it to some academic debates.</div>
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Regards</div>
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Smarak</div>
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Unknownnoreply@blogger.com2tag:blogger.com,1999:blog-7778992.post-9451755668830889032012-05-28T05:33:00.000+05:302012-05-28T05:38:23.362+05:30Real Estates & FIIs<div dir="ltr" style="text-align: left;" trbidi="on">
The Finance Bill 2012 has been a landmark one in the sense that no other finance bill in recent times received as much coverage and as much focus as this one. There has been a hullabaloo about tax evasion for quite sometime now and many new proposals were floated in Finance Bill 2012. So what would you consider the most important of all these proposals?<br />
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Quite evidently, a layman would call "GAAR" or retrospective amendments to Section 9 (r.w. Sec 4) as the most breakthrough proposal. This comes naturally, given the wide propaganda and lobbying that FIIs and FDI based companies did criticizing these two provisions. Every economics-newspaper carried lengthy debates and columns almost on a daily basis for past three years. Some embassies, notably English, American, and Norwegian ones, also expressed their displeasure on these provisions.<br />
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But as an administrator and investigator of income tax in this land, I would opine that withholding tax (TDS) on immovable properties was the most breakthrough proposal of this bill. Hats off to people in TPL at North Block for coming up with such an innovative proposal.<br />
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Much earlier, in the pre-1992 era, a sale of property had to be vetted by IT department. If the department found that a property is being sold at an abnormally low price, it could even out-bid and purchase the said property (conditions apply). This was an inconvenient system, adding to red tape and bureaucratic delay in real estate transactions. It was removed for good. But owing to this, the IT department was depraved of much crucial knowledge on market values of immovable properties.<br />
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This proposal was landmark in the sense that many sellers make sale of property without even reporting the sale for capital gains tax. A major chunk of black money is generated from real estate, and this was the easiest and least intrusive method to tax same.<br />
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Alas! The proposal was rolled back when final bill was passed. It is interesting to note that while there was lot of hue and cry about GAAR and retrospective amendments (making them national issues, whereas these are basically issues concerning non-residents) there was literally no criticism of TDS on immovable properties in media. This was perhaps because TDS on immovable properties is the right way to go about in dealing with real estate. <br />
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There was not a whimper in media about TDS on immovable properties. Yet the provision was rolled back, because of petitions pointing out "the additional compliance burden this measure would impose." It must be noted that TDS was proposed only on sale value above Rs. 20 lakhs/50 lakhs. Yes there would be an additional compliance burden, but then such a burden exists for all other services/ sectors where TDS or TCS is charged. TCS has been imposed on gold too. Why would additional compliance be a major concern? I did not understand this.<br />
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Further, this TDS provision would have made a revolutionary impact on real estate sector. The sector, as of now, is mired by mafia interests, benami landhold, and goondagiri (for the lack of a better word). There are, further, many fraudulent companies making millions on real estate scams. This simple provision could have brought a huge change. Some of these are:<br />
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1. Properties of corrupt bureaucrats lying in name of their drivers, cooks, and keeps would be easily traceable.<br />
2. A comparative analysis of actual market value (which is much higher than stamp value) could have been made from data on TDS deductions. Information will be available centrally and in a digitized form. Presently only sub-registrars have such data and not in digital form. This makes statistical analyses difficult.<br />
3. It would give intelligence agencies necessary data on mafia money and drug money.<br />
4. Those non-filers who sell ancestral properties at high prices (such as in Noida and Gurgaon) will be forced to file return for capital gains tax.<br />
5. This would bring <b>systemic changes </b>in the parallel black market. Major components of the black market are real estate, gold trade, and hawala. Giving taxmen the "information" on property sale would go a long way in curbing this.<br />
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However, it seems that this was too drastic a step for the parallel economy to digest. This simple proposal would have shaken the whole parallel economy; its primary weapon for sinking black money is land. Most interesting is the fact that there was no criticism of the proposal in media. It was rolled back without a debate in public (a public debate would establish its utility for sure). After it was rolled back, there was hardly a murmur in media on why the proposal was killed.<br />
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All things said and done, the proposal for TDS on immovable properties must have given sleepless nights to the all-powerful realty lobby.</div>Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-7778992.post-24293950525491497922012-01-03T12:09:00.002+05:302012-01-03T12:19:47.357+05:30Interview question: "Why?"I am in the middle of a long road trip. Completed the road to Rann of Kutchh yesterday with batchmates Dora and Puru.<br /><br />There is a point I need to make about answering an interview question usually asked in civil services. Since its a hectic trip, i shall keep it short - yet i need to point this out, lest I forget later.<br /><br />Invariably every interviewee in civil services, so also in military services is asked "Why this service?". There are many reasons and typically interviewees begin with "I want to serve my nation/ society etc etc". <br /><br />Avoid using this sentence: "I want to serve my nation/society" because it sounds superfluous. The Constitution of India clearly states that every citizen has some FUNDAMENTAL DUTIES. These duties basically point out that every citizen should endeavour to serve his/her nation and society. Everyone serves the nation. An engineer in a Tata steel plant plays his part in nation building. So also a desk programmer in Infosys (and no one can ignore Tata' or Infy's contribution to building of modern india.<br /><br /><br />Secondly, the statement "I want to serve my nation/ society" demonstrates a basic falacy - that you do not already serve your nation/ society. You want to get into a government job to serve your society!Unknownnoreply@blogger.com1tag:blogger.com,1999:blog-7778992.post-19436678406018413402011-12-22T12:19:00.001+05:302011-12-22T12:30:44.618+05:30Curious case of the Rat Menace Prevention & Elimination CommitteeA very experimental writing... don't know where this prose is leading:<br /><br /><br />Satwik Biswal joined in as the Assistant Commissioner of Income Tax, Old Bhubaneswar circle, in mid-June, 2010. This was his first posting after training at national direct tax academy in Nagpur. The Old Bhubaneswar circle is the most important circle in tax administration in Orissa. Almost all major business houses, political figures, and educational trusts file their return in Old Bhubaneswar circle. This circle has traditionally been held by officers promoted from lower ranks. This was the first time in years that a young direct recruit officer was posted in this critical circle.<br />Biswal courted controversy just within couple of months of joining in. He had constituted a Rat Menace Prevention and Eradication Committee (RaMPEC) which was hugely unpopular among lower rank officials. The details as are mentioned in this section are primarily based on interview of an inspector by the name of RC Giri. Mr. Giri is a short man with a dark complexion and a belly that protrudes out of his structure like a swimming tube. He walks at an abnormally slow gait, perhaps owing to the heaviness centered in his belly.<br />Many officials I talked to in the department vouched that Giri was a close confidante of Biswal. Hence it was natural for me to extract some information from him. As per Giri Biswal was a ‘kid’ full of ideas. While most remember him as a sharp investigator, Giri recalls him as a good administrator too.<br />Within days of joining office he had taken a stock of housekeeping work in the office. As in all government offices it was in a mess. It was difficult to locate even two year old files. Many files were destroyed just by negligent storage. Files are generally heaped onto tall racks. Racks are arbitrarily placed anywhere without any ergonomic concern. This made it very difficult to trace files.<br />While income tax cases (called assessment) are built up by Assistant Commissioner (AC) level officers, the aggrieved taxpayer can appeal against the orders passed by ACs in appellate forums. The first appellate forum is departmental appeal with a commissioner. Then the taxpayer can appeal to a tribunal managed by law ministry. If still not satisfied, the taxpayer can file an appeal in High court. Supreme Court is the last and final door a taxpayer can knock against an investigation conducted by an AC.<br />The litigation reaches tribunal at an average of four years after the order is passed by AC; it takes not less than seven years for high court to arbitrate over the issue, if referred to. This is the reason why most institutions shudder from entering into income tax litigation. While the evasion case is discussed in tribunal and high court, the original evidence still lies in the files maintained in AC’s office. Most officers do not realize the might of these dust coated files that litter tax offices. Every file is a telling history of legal issues, facts, evidences and litigations. Biswal understood this very well.<br />After taking charge the first thing Biswal went about was updating registers. He started indexing files as per years and taxpayer names. This may sound simple, Giri warned, but is a herculean task. The whole work consumed a whole month. All peons, clerks, inspectors and superintendants working under him worked full time towards making this housekeeping task possible.<br />After all records had been updated Biswal found that many files from previous years’ cases were missing. Amazingly these were also the cases in which the department had lost in tribunal and high court. On a test basis Biswal collected tribunal orders and read them. He found that the department had lost because of its inability to produce evidence or scrutiny file. This could not be a mere coincidence. Biswal highlighted the issue to his Commissioner.<br />The Commissioner directed a senior officer to direct an internal enquiry on the issue. Superintendants blamed inspectors for this negligence; inspectors blamed clerks and clerks blamed peons. Peons said that the files were damaged due to rats, and rat menace was outside their control.<br />Not deterred by this, the Commissioner instituted a Rat Menace Prevention and Eradication Committee (RaMPEC) to look into the issue of rat menace. The committee unanimously nominated the Commissioner to preside over the proceedings of the committee. Biswal was made the member secretary of this committee.<br />It is to be noted that many other committees had been constituted before RaMPEC to look into this issue. The Rodent Resistance Committee (RRC), the Office Property Preservation Committee (OPPC) and the Counterintelligence Group against Rat Attack (Cigara) had all been constituted with similar purposes. However, they had not managed to develop any lasting solutions. These committees still held quarterly meetings, but members could not come to a consensus on what actions to propose to the Chief Commissioner of Income Tax.<br />RaMPEC was different. It was formed with a focused objective of eradicating rat menace. Unlike other committees RaMPEC had set a deadline for itself. As member secretary, Biswal visited certain corporate houses and analysed their record keeping system. He also consulted some librarians on the right approach to maintain documents. Finally he came up with two proposals: (a) use of compactors to store files and (b) digitization of registers. Compactors are steel chambers that slide over iron rails. As storage device they save lots of space, have clean and aesthetic look, and above all are immune to rodent attack. The committee was impressed by the research Biswal had done. It was decided that compactors will be introduced for all offices in Bhubaneswar.<br />However the proposal to introduce compactors faced stiff resistance from the staff union. The union’s official stand was that they were not consulted before taking decisions for office modernization. Immediately Biswal countered that Giri, a member of staff union, was a member of RaMPEC. Union members countered that the staff canteen should be modernized before any other modernization step is taken as Canteen Beautification Committee (CMC), Staff Canteen Hygiene Committee (SCHC), and Canteen Infrastructural Development Committee (CIDC) had been constituted before RaMPEC.<br />The real reason for staff union’s resistance was that the union saw introduction of compactors as a decrease in its powers. If a file mysteriously vanished a peon could no longer lodge blame on rats. Compactors come with a lock and key system, and peons would be squarely answerable for misplacing any file. The current system of record keeping was so botched up that an officer was under the mercy of his clerks to get him a relevant file. This afforded a balance of power between officers and clerks. The Commissioner understood this and was enthusiastic to introduce compactors. He promptly processed the recommendations of RaMPEC. Funds were allocated to SCHC and CIDC so as to appease the union. The union then raised a demand that all staff quarters should be renovated before implementing any grandiose modernization scheme. This was not possible as funds were not available for renovation work. Additional funds can be drawn only after fresh budgetary allocations in March every year. The union became militant and threatened to go on an indefinite strike. The Commissioner yielded and proposals of RaMPEC were put at abeyance.<br />There is nothing more to report on this episode. Giri claimed that by being forceful about implementation of RaMPEC recommendations Biswal had become unpopular among his staff.Unknownnoreply@blogger.com1tag:blogger.com,1999:blog-7778992.post-34319797113640865312011-12-21T18:50:00.001+05:302011-12-21T18:51:26.208+05:30The haunted roadWrote this short prose today while participating in a writing exercise in Facebook...<br /><br />One cold winter night Lakdas took up the challenge: to bike his way from Konark to Puri via the Gop beach route. I know, I know. No one takes that road: except but the crack, the drunk, and the ignorant. Lakdas was drunk. So were we; but no one else dared take the road.<br /><br />Legend has it that some five decades - no centuries - back the hot queen of Puri (its a legend. We don't know if she really was hot) had her private beach somewhere on the Gop marine drive. This is where she used to have her rave parties, her topless dance festivals, and many jizz sessions. Why - you ask? Why not? She was the queen. She would whore away her time as she desireth. Who are you to say?<br /><br />And so the queen was having a good time while the king (her husband) was out on the borders fighting a futile war against the mighty Afghan Sher Shah Suri. Suri drove him from the battlefield and, unable to show his face to his subjects, came back to the capital in disguise. And lo! What does he find? There Sher Shah Suri was grinding his army and here his subjects were grinding his bitch. Enraged with this decadence he unsheathed his blade and chopped off every man and woman in the Queen's entourage. The queen was burnt alive in her own private beach.<br /><br />Years, decades, heck centuries passed. But the Queen still haunts this road.She appears in the night and vanishes by daybreak. That fateful night Lakdas, drunk to the neck, took up the challenge and made his way for Gop beach. <br /><br />Lakdas, his Royal Enfield Thunderbird (350CC, VPX model), and another fool of a guy riding pillion, pierce through the darkness as they prepare for an encounter with the enchantress. For some one hour there was nothing. The road was deserted, trees were dull, and Thunderbird strolled along in leisure.<br /><br />Just as the road starts to seem predictable Lakdas sees a beautiful lady, a voluptous cougar, stand on the other side of the road. Her eyes show her naked yearn for young men. Her sari end has fallen off on the ground as she stands in invitation. Lakdas stops his vehicle and gapes at her amazing body (she sure is hot). Lakdas realises that he is under her control - that she has him hypnotised. In no time she would feast on him. He knows this, he understands this; but cannot do anything about it. His body seems to have forsaken his control.<br /><br />I find it funny when Lakdas panics. Of course I have had too much alcohol, so I cannot be serious about my friend's plight. I feel guilty. I feel guilty that my mouth waters for the Queen's booty bulging out of a gold embroidered brassiere while my friend cries for help.<br /><br />Wait! How can I see the queen? I had not taken this route. Only Lakdas had... Lakdas and the other fellow riding pillion.<br /><br />Shit. I am the pillion rider. Am screwed.Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-7778992.post-88697237658737461032011-11-22T12:20:00.002+05:302011-11-22T12:27:37.953+05:30Guest lecture in IIPMI gave a lecture on "Concepts in International taxation and offshore evasion" on 19.11.2011 (Saturday) at Indian Institute for Production Management, Rourkela.<div><br /></div><div>The lecture ppt for same can be accessed at the following link:</div><div><br /></div><div>http://www.2shared.com/file/bqfWwhv1/international_taxation.html</div>Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-7778992.post-44210206511155754122011-10-07T20:44:00.002+05:302011-10-07T21:17:02.758+05:30Why IRS? Giving the interview board an answerI have been so so so irregular with my blogging that the last few blog posts are full of profuse laments and apologies to my faithful readers. I won't repeat same and shall declare at this moment, shading all masks of hypocrisy, that I have ceased to be a 'blogger'. Occasional posts will no doubt come.<div><br /></div><div>I am writing this post because I have been getting many queries about IRS as a service and what to tell the interview board if one takes up IRS as first option. Its natural that IRS is fast becoming popular as a second choice among aspirants and few even opt for it as first choice. This probably is because its a balanced service: metro postings, interesting work culture in investigation wing, hardcore babugiri in commissionerate, heavy power, and exposure to all kinds of business activities.</div><div><br /></div><div>Last year when I was in commissionerate I had such tremendous exposure that I could get 3-4 PhDs in business studies for my assessment orders. Beyond this, there is the charm of going after the who-is-who of your state. While commissionerate was about administration over all corporate and business houses, investigation directorate is about policing. Investigation wing is the specialised wing that conducts Income Tax search and seizures (popularly called raids). The kind of confidence one gets after working here is tremendous and unparalleled.</div><div><br /></div><div>On top of this new challenges have opened up in the form of International taxation and transfer pricing (those of my batchmates posted here keep telling me about the frequent international training sessions they go for) which may soon result in international tours for the purpose of investigating money laundering. There are 14 posts in various embassies all over the world for IRS officers.</div><div><br /></div><div>So coming to the point of filling it up as a first option, now this is tricky. Income Tax department, unfortunately, has a bad name because of few black sheep. Such sheep are in every organisation but given the vastness of IT department, they get highlighted frequently. So when you fill IRS as first option, the board may make a pre-judgment that:</div><div><br /></div><div>1. You are opting for it for ulterior motives OR</div><div>2. You do not want to put in 8-9 years in rural India (which is usually the case in IAS/IPS) and soon the debate turns into an India Vs Bharat</div><div><br /></div><div><br /></div><div>Don't worry. You have on your side one important factor: that you know what you want. Most people who want to come into services do not know what they want; hence they fill up options in a traditional way. Those who don't want to go abroad fill up IFS last. Those who dont think they are not meant for IPS also fill it up last. But you are one of the few who have filled IRS as first option.</div><div><br /></div><div>Now you need to know: why IRS? You have to show your fascination for financial crimes, money laundering, and black money. As a <b>regulator</b> you will be exposed to a variety of business processes... business houses are bound to disclose to you, if you so demand, such confidential facts which they would not to any other authority. As an <b>investigator</b>, you get to make very high level enquiries - both discreet and open - into large and sensitive business and political groups. As a <b>quasi-judicial authority</b>, you arbitrate over issues pertaining to Income Tax Act, Benami Transactions Act, and Money Laundering Act. As a court of law you come just below the tribunal and high court in judicial hierarchy.</div><div><br /></div><div>Further you have to be clear about the greater purpose you are solving. By taxing people and corporates you are leading to macro-economic stabilisation. You are the first and last line of defence of India's socialistic ideals. It is your responsibility not only to get government its dues but also contain capitalistic tendencies. In this age of free markets and facilitation of large corporates, it is all the more important to have a strong regulator responsible for circulation of money through the hierarchy.</div><div><br /></div><div>I think this basic explanation will impress the board of your clarity and the reason for your choosing the service as first preference. I again repeat what I have already repeated time and again: the interview board asks you 'why?' about everything you have mentioned in your profile because they want to know whether you have clarity. Clarity shows synthesis of personality.</div>Unknownnoreply@blogger.com1tag:blogger.com,1999:blog-7778992.post-77503382831633798072011-05-26T09:48:00.004+05:302011-05-27T21:13:16.863+05:30In the defence of revenueIn a recent <a href="http://business.financialpost.com/2011/05/25/vern-krishna-the-pluses-and-minuses-of-business-in-india/">article </a>in Canada-based Financial Post, academician Vern Krishna argues that the Indian Revenue Service - the IRS - 'does not enjoy the reputation for being as untarnished as it should be'. In the very next sentence he states that IRS is also zealous to the extreme; which basically means the IRS is heavily pro-revenue.<div><br /></div><div>Now I see that the two statements are contradictory. On one hand the author states that IRS has a bad reputation when it comes to probity in public life; on the other hand it states that IRS is a zealous tax collector.</div><div><br /></div><div>I think when he talks about the bad reputation of IRS he basically implies the refund issues. Recently an NGO also highlighted that corruption in granting IT refund is one of the primary avenues of corruption in Indian bureaucracy. Unfortunately Vern Krishna lacks enough insight into the fact that the corruption in issuing refunds was rampant in the system because the clerks enjoyed greater say in issuing refunds. This is true for any department infested with clerks who effect the movement of files, be it excise duty or state secretariat. Often much of the bad name given to bureaucracy is because of clerks who are responsible for movement of files.</div><div><br /></div><div>This problem is being fast mitigated because of the establishment of Centralised Processing Centre (CPC). CPC has effectively computerised the process of processing of returns and issue of refunds. The introduction of electronic clearing of refunds further reduces the role of clerks in effecting refunds.</div><div><br /></div><div>Unfortunately the bad reputation gained by IT department over the years owing to its short-sighted work culture at the bottom of hierarchy tarnishes the image of IT department, and by extension the IRS.</div><div><br /></div><div><b>Zealous taxmen: The Vodafone case</b></div><div><br /></div><div>When Vern Krishna argues that the IRS is zealous to the extreme, he gives the example of the vodafone case. To quote him:</div><div><br /></div><div>"<span class="Apple-style-span" style="font-family: georgia, 'times new roman', times, serif; line-height: 20px; ">The Indian Revenue Service is also zealous in the extreme. For example, it recently assessed a British company, Vodafone Group PLC, US$2.6-billion taxes on capital gains that the company triggered on a share sale of a non-resident company between two non-residents on some tenuous theory that there were corporate assets in India."</span></div><div><span class="Apple-style-span" style="font-family: georgia, 'times new roman', times, serif; line-height: 20px; "><br /></span></div><div><span class="Apple-style-span" style="font-family: georgia, 'times new roman', times, serif; line-height: 20px; ">The problem with summarising tax issues is that most of the issues are lost in translation. The devil of taxation lies in the detail. By giving the above summary Krishna has basically shown his ignorance of the Vodafone case (Rahul Navin sir, the man behind the Vodafone case, was my teacher at the academy - hence I profess a better idea of the real issue). Krishna has failed to realise that Cayman based shell company of Vodafone had purchased Hutchinson's Cayman Island based shell company (a company with thin capitalisation) which was the holding company of the holding company which owned the holding company of Hutchinson India.</span></div><div><span class="Apple-style-span" style="font-family: georgia, 'times new roman', times, serif; line-height: 20px; "><br /></span></div><div><span class="Apple-style-span" style="font-family: georgia, 'times new roman', times, serif; line-height: 20px; ">There were about 15 shell companies based in various tax havens which formed a chain of holding companies that ultimately held the rights over Hutchinson India. Krishna is right when he observes that the payment was effected in Cayman Islands and both the shell companies were registered in Cayman Islands. But the mobile towers of Hutch are all located in India. All other assets of Hutch are located in India. Heck, the Hutch pug shown in its ads is also a copyright asset on Indian soil.</span></div><div><span class="Apple-style-span" style="font-family: georgia, 'times new roman', times, serif; line-height: 20px; "><br /></span></div><div>If a capital asset is located in India, the transfer of this capital asset should be taxed in India. The apex court has stated in numerous previous judgments that if colourable devices are used to avoid taxes it is not tax planning but tax evasion. The deal was signed in Cayman Islands to fool the IRS. A complex network of shell intermediaries were inserted to make it difficult for IRS officials to unmesh it. There is clearly an intention to evade.</div><div><br /></div><div>It amazes me to see the number of sympathizers for the assessee in this case. International taxation is an emerging field and law is still extremely fluid. However, it cannot be denied that in an increasingly networked and globalised world many problems of taxation will arise. The major issue is with Supra National Companies (SNCs ?) which pose as Multi-National Companies (MNCs) and take benefits of markets of multiple nations but are inclined not to pay for it.</div><div><br /></div><div>Basically a SNC is a company that does not have a country of source or destination. It is based in some tax haven and has a single-minded objective of making profits. It taps into various local markets but does not want to pay taxes as per local norms. This creates a problem of equity. Domestic companies are bound by Indian tax laws. MNCs are bound by tax laws of both India and the country of source. Tax-haven-based SNCs try to exploit the complexity of accounting webs to evade tax laws. In my opinion the GAAR proposed in DTC will go a long way in mitigating these issues.</div><div><br /></div><div>Coming back to the Vodafone case, recently an Indian ambassador to a bunch of European countries <a href="http://www.business-standard.com/india/news/jaimini-bhagwati-keep-it-less-taxing-please/432259/">opined in Business Standard</a> that issues such as the Vodafone tax case do not go down well with India's image as an investment destination. Without raising aspersions about his Excellency's insights into tax laws and French wines, it is pertinent to note that if SNCs are not taxed in 'country of source' or 'country of residence' then who is going to pay for the expenditures of Indian embassies in Europe and European embassies in India?</div><div><br /></div><div>More than anything else taxation is an issue of equity. Tax evasion is not just an injustice to the treasury but also to the taxpayers - in this case the domestic companies and MNCs that follow bilateral DTAA norms. When India is set to lose $ 2.6 billion in legitimate taxes from Vodafone, I think 'image' as an investment destination should not worry us. As it is India is fast becoming the biggest market for global firms having managed to build up an affluent middle class. Outsiders are desperate to mop up on Indian mine resources. POSCO had said many times that it would leave India if legal issues are not resolved soon - but it still hangs on. We don't have to please those who are investing in India on their own.</div><div><br /></div><div>Coming back to IRS, yes we are a zealous group of sleuths. Vern Krishna has aptly remarked this, but unfortunately the work done by these zealous taxmen does not get appreciated in national fora. Rahul Navin has brought benefits of $ 2.6 billion to Indian government by tracing out vodafone tax evasion. Alas, not a single award of national repute was given to him for the hard work he put in.</div>Unknownnoreply@blogger.com11tag:blogger.com,1999:blog-7778992.post-34498895694728350022011-05-14T00:36:00.002+05:302011-05-14T00:39:51.622+05:30Stack Your RackBefore my "Beep" book was out I only knew Flipkart. It was the default online bookstore to buy from, and it did not occur to me that there may be other online bookstores with competitive offers.<div><br /></div><div>It was only when my book was released and I frantically searched the net for my book that I came to know about other bookstores and comparative price of various books in all these bookstores. One of these online stores is <a href="http://www.stackyourrack.com/">http://www.stackyourrack.com/</a> which gives 18% discount on my book where flipkart gives only 5% discount. Many other books have such competitive prices.</div>Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-7778992.post-51019600680249578232011-04-25T01:09:00.003+05:302011-04-25T01:31:21.205+05:30The Black Book of Indian Cuss & Slurs<div><br /></div><div>I had conceptualised the idea for this book about two years back when I had written an essay on common swearwords used in Indian languages. At that time it did not occur to me that this could be converted into a book. After the essay was appreciated by friends, I started writing a series of essays on the subject of swearwords and before long I had a book ready.</div><div><br /></div><div>"<a href="http://www.infibeam.com/Books/beep-you-you-beep-hole-smarak-swain/9789380349312.html">Beep You! You Beep Hole: The Black Book of Indian Cuss & Slurs</a>" is the result of days of idle talks with friends in back benches during my training period in National Academy of Direct Taxes (NADT) and mindless scribbling. I am not sure if I have used the right form and style on the vast subject of swearwords or whether it does justice to the subject; but still I went forward with searching for a publisher. My conviction was based on the following reasons:</div><div><br /></div><div>1. There is no basic introduction to swearwords in market</div><div>2. The book has tinges of chick-lit writing style. It is academic in orientation but does not go heavy on the reader - I realise that my average target base is population of young teen category.</div><div>3. It makes for an interesting read. I have made an attempt to demonstrate the use of swearwords by using swearwords in the course of my explanations and narrations.</div><div><br /></div><div>I believe I could have done more justice to the subject of censorship; the space I gave to this chapter was small; this was because had I gone into it at length the chapter would have disintegrated with the general mood and balance of the book.</div><div><br /></div><div>Anyways the book is now out and just today I got to know that it is available in bookstores of New Delhi. It will reach other stations in 5-10 days.</div>Unknownnoreply@blogger.com3tag:blogger.com,1999:blog-7778992.post-5774705418693380632011-03-25T11:32:00.005+05:302011-03-25T14:56:55.577+05:30"Attach his accounts!"The worst situation one can find himself in, it is said, is to owe money to the mafia. And the biggest mafia in any country is the government of the day. Government is mafia with legitimacy and government's henchmen are called TAX MEN.<div><br /></div><div>It so happens that whenever a taxpayer defaults in payment of taxes, tax recovery mechanisms of the government are activated and all types of properties are attached. "Attach his accounts" is the favourite tagline of an income tax commissioner whenever the finance ministry comes knocking for budget targets.</div><div><br /></div><div>Few days back, during a recovery procedure, it was found that to escape the taxman the defaulter has put all his funds in floating demand drafts. The drafts are drawn by the same person in his own name. Now this is novel.</div><div><br /></div><div>As such demand drafts are negotiable instruments encashable at a discount at any branch of any bank in India. The physical money is in the possession of parent bank. But can this physical money be attached and retrieved by revenue? This issue has come earlier too, but that was an era when drafts were physically transferred to clearing branches in respective cities. At that time a simple attachment at the issuing bank would do the trick. Post-Information Tech reforms banks no longer transfer drafts physically. Rather a system generated confirmation of genuineness is uploaded into a central server and any bank branch can cross-check it.</div><div><br /></div><div>Hence the only alternative remaining in such a case is to cancel the draft at the issuing branch. Now the problem is that draft numbers are available but drafts are not in IT department's possession. Can the draft still be encashed? If so, what is the procedure? The IT Act gives all round authorisation to its taxmen to retrieve tax demand from banks. But in this case a new challenge arises; as to the procedure to be adopted to cancel drafts so as to retrieve tax for revenue.</div><div><br /></div>Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-7778992.post-15330648554641314872011-03-10T18:39:00.003+05:302011-03-10T18:47:24.727+05:30A judgment on CAG Activism<div><br /></div><div>This is a judgment I read about just today... however I see that it has strong consequences and every assessing officer should know about this judgment when facing an audit objection wherein the audit party has resorted to <b>audit activism</b>. The case is Carlton Overseas Pvt Ltd Vs. Income Tax Officer & Others [2009-TIOL-461-HC-DEL-IT].</div><div><br /></div><div>In the above case the assessing officer had completed the case u/s. 143(3) giving allowance to the assessee for Section 80IA exemption. Later the case was reopened u/s. 147 of IT Act in response to an objection by Revenue Audit Party. High Court quashed the order.</div><div><br /></div><div>Hon'ble High Court also stated that the primary function of audit in relation to assessment and refunds is the consideration whether the internal procedures are adequate and subsequent. It is not intended that the purpose of audit should go any further. Whether it is the internal audit party of the IT department or an audit party of the CAG, they perform essentially administrative and executive functions and can not be attributed the powers of judicial supervision over the quasi-judicial acts of the income tax authorities. The income tax act does not contemplate such powers in any internal audit organisation of the income tax department but only in those authorities which are specifically authorised to exercise adjudicatory functions.</div><div><br /></div>Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-7778992.post-3182980897909591612011-02-18T16:40:00.000+05:302011-02-18T16:41:36.730+05:30<div>Ah well those tipsy eyes</div><div><div>I Wish I could drink off them</div><div>And lay in her enchanting arms</div><div>Which, I say, are no less than a harem</div><div><br /></div><div>Ah well her slender neck</div><div>I wish a vampire I were</div><div>How in delight could have feasted</div><div>On the warm blood trickling down her lavaliere</div><div><br /></div><div>Ah well her smile of entice</div><div>I wish I were but a taxidermist</div><div>Could have preserved for eternity</div><div>The piece of art at its bitchiest</div></div>Unknownnoreply@blogger.com2tag:blogger.com,1999:blog-7778992.post-74852986203898417022010-12-14T15:33:00.005+05:302010-12-14T16:05:55.499+05:30Last line of defenceIt's exactly six months since I took charge as assessing officer, Circle 1(1), Bhubaneswar. And its been good six months. On the day I took charge, to be frank, I had apprehensions. I had not really been a serious student at the academy and given the hype about income tax being a very technical field my apprehensions were well placed.<div><br /></div><div>Yet my self-appraisal about my last six months is that I enjoyed the work. Thoroughly. Home town Bhubaneswar about which too I had apprehensions turned out a welcome change: a son of soil getting rooted. As for the intricacies of accounts and law, I enjoyed it to the hilt. I learnt much more from my senior Dipi ma'am here than I did at the academy (inspite of Tripura ma'am's vigorous whips to train me) and have managed to get an attitude towards the job. Not for a moment did I find the job taxing.</div><div><br /></div><div>Yet these six months have left me wondering: what keeps a taxman going? An army man defends the country; a policeman protects; the local administrator develops; even a guy from Customs & Excise is involved in anti-narcotics operations and customs inspection. What is the glory, the pride, in financial investigations? When I wonder this out loud, pat comes a reply from some corner hidden behind huge stacks of files "you collect taxes that helps these guys do what they do".</div><div><br /></div><div>Naah. That's the dumbest reply I have heard.</div><div><br /></div><div>Let me tell you what I understood of the essence of being a tax sleuth is: Income Tax department is the first and last line of defence of this country's socialism. Period.</div><div><br /></div><div>The founding fathers of this country had envisioned a country of balances and diversity. Balance between capitalism on one extreme and communism (marxist, maoist etc) on the other is one of the basics of this country. A common middleway is socialism. In the post-liberalisation era the concept of socialism assumes even more significance because now this country runs the risk of being run over by raw capitalist forces: big corporates who can call the shots in policy making. The need many policy makers have voiced is for balanced development in post-liberalisation period.</div><div><br /></div><div>In many other countries liberalisation policies have been followed by a handful getting too big to control and gobbling up all public resources. Here comes the role of income tax sleuths: to maintain balance. To use a jargon, IT department is the prime agent of macro-economic stabilization. When Jayashankar sir had spoken about it in the academy the word looked so fanciful. The core idea behind it is not to let the markets run amok.</div><div><br /></div><div>But more critical role of IT department is circulation of wealth. 30% taxes on any corporate body reminds the corporate of what it owes to the country and its people. As agents investigating tax evasion, IT sleuths are the only dedicated and specialized force looking into corporate behaviour. </div><div><br /></div><div>Such is the nature of this job that starting from day 1 of his career an assistant commissioner of IT investigates into corporate files and tries to understand the logic and law behind any financial behaviour. This gives this department the unique ability to understand financial behaviour at a more subliminal level. Indeed, IT department is the first and last line of defence of socialism. Just like the army is first line of defence of this sovereign's sovereignty and paramilitary is second.</div><div><br /></div><div><br /></div>Unknownnoreply@blogger.com6tag:blogger.com,1999:blog-7778992.post-41111788593881501292010-11-14T02:41:00.002+05:302010-11-14T03:01:34.986+05:30Towards the endAm almost reaching the final stages of book publication for my next book: The Black Book of Indian Cuss and Slurs.<div>Now that's the sub-title. I have been brainstorming a lot on a suitable title, but to no avail. I found "HYMNS OF THE FOUL TONGUE" appealing. But that sounds <i>thanda </i>to junta. Finally a friend suggested "F_BEEP M_BEEP". I found the name brainless but then now the whole book seems brainless to me.</div><div><br /></div><div>When I had started out I knew this is an irrelevant topic and my approach is even more irrelevant. I was writing for myself: it just ended up a non-fiction. Etching out time from a new (and demanding) job, I did manage to end it but now i wonder if its at all meant for readers.</div><div><br /></div><div>But then there is always this assurance: friends and family. Sorry, only friends. Family would doom me if they get a copy of the book. Friends have been tolerating my writings and will keep doing so. As regards a writing career, I am not sure I any longer intend to have one full time. Writing tits and bits here and there would suffice, i guess.</div><div><br /></div><div><i>Applied Psychology </i>has been a bestseller in UPSC market afterall. I hadn't expected this good response after psychology tutors just wrote it off. Now I realise the psychology coaching teachers in Delhi were just feeling threatened by a to-the-syllabus book. Many ppl have even requested me to come out with a book on paper 1 and a book on sociology. Nah, I don't want to write for competitive exams. I wrote the book then because i liked reading psycho. Now i have moved on to law and accounts :) It is the dumbest to write for business. All those people who make a living out of writing have an intrinsic motivation driving them; a passion to write. Competitive book authors are not, in the real sense of the word, writers. They are businessmen.</div><div><br /></div><div>Now something about my next venture. Ram Gopal Verma once said he conceptualises his next movie by the time one ends. May be that's why his factory productions produces so sub-standard movies these days. Btw, I plan to start working on a documentary movie on Orissa's business trends in January. Have to pursue Ortel guys for a break.</div><div><br /></div><div><br /></div><div><br /></div><div><br /></div>Unknownnoreply@blogger.com6tag:blogger.com,1999:blog-7778992.post-29746131927285359792010-08-29T17:13:00.004+05:302010-08-29T21:10:09.268+05:30Musafir X in Paradeep<div><p class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt;line-height: normal"><span style="font-size:9.5pt;font-family:"Georgia","serif";mso-fareast-font-family: "Times New Roman";mso-bidi-font-family:"Times New Roman";color:black">Musafir X, aka Musa, hasn't been doing much travelling of late. In fact other than the name<i>musafir</i></span><span style="font-size:9.5pt;mso-bidi-font-size: 10.0pt;font-family:"Georgia","serif";mso-fareast-font-family:"Times New Roman"; mso-bidi-font-family:"Times New Roman";color:black"> </span><span style="font-size:9.5pt;font-family:"Georgia","serif";mso-fareast-font-family: "Times New Roman";mso-bidi-font-family:"Times New Roman";color:black">(Hindi for traveller) there is no remote connection with travelling. He has become a workaholic: an income tax assessor dedicated to the collection of revenue in the service of His Majesty the King... oopsi His Excellency the President of India. He spends weekdays taking hearings and making long statistical analyses and weekends in writing orders; orders that make him a villain in lives of 'em people who earn.</span></p> <p class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt;line-height: normal"><span style="font-size:9.5pt;font-family:"Georgia","serif";mso-fareast-font-family: "Times New Roman";mso-bidi-font-family:"Times New Roman";color:black">As an assessor he has been posted in Bhubaneswar, in Orissa. Now this is a state Musa is familiar with, yet not so. He is Oriya, but not a resident of Orissa. He can pass off as an 'insider' here, yet his sense of the land is skin deep. He speaks fluent Cuttki Oriya, with a neutral (at times Bihari) accent. A rootless man sent back to his roots. A psycho-analysis of Musa would reveal a sub-conscious antipathy towards the people and the land, an attitude (preconceived notion?) diametrically opposite to that of a real traveller. This thou reader may construe as a reason apart from the work addiction inhibiting his impulse to explore.</span></p> <p class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt;line-height: normal"><span style="font-size:9.5pt;font-family:"Georgia","serif";mso-fareast-font-family: "Times New Roman";mso-bidi-font-family:"Times New Roman";color:black">Yesterday was different. His work-eat-sleep-work routine had come to a point of strain threatening a breakdown. He realised the occasional highway bike rides were no solution. And opportunity presented in the form of Lakx. Lakx, a fellow tax assessor who had been placed in Rourkela, believes that he still has a life and demands I take him someplace. Doars is little reluctant but finally agrees. The plan is sudden, the destination arbitrary, and weather looks just fine. We pack up in a hired indigo and start off to... wait for it... Paradeep.</span></p> <p class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt;line-height: normal"><span style="font-size:9.5pt;font-family:"Georgia","serif";mso-fareast-font-family: "Times New Roman";mso-bidi-font-family:"Times New Roman";color:black">Why Paradeep??? Doars had asked, and as I can see you too wonder. Just like that, I would say. We just wanted to</span><span style="font-size:9.5pt;mso-bidi-font-size: 10.0pt;font-family:"Georgia","serif";mso-fareast-font-family:"Times New Roman"; mso-bidi-font-family:"Times New Roman";color:black"> </span><i><span style="font-size:9.5pt;font-family:"Georgia","serif";mso-fareast-font-family: "Times New Roman";mso-bidi-font-family:"Times New Roman";color:black">get out</span></i><span style="font-size:9.5pt;font-family:"Georgia","serif";mso-fareast-font-family: "Times New Roman";mso-bidi-font-family:"Times New Roman";color:black">. God, this has become so tough these days!<o:p></o:p></span></p> <p class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt;line-height: normal"><span style="font-size:9.5pt;font-family:"Georgia","serif";mso-fareast-font-family: "Times New Roman";mso-bidi-font-family:"Times New Roman";color:black"><o:p> </o:p></span></p> <p class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt;line-height: normal"><b><span style="font-size:9.5pt;font-family:"Georgia","serif"; mso-fareast-font-family:"Times New Roman";mso-bidi-font-family:"Times New Roman"; color:black">The road</span></b></p> <p class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt;line-height: normal"><span style="font-size:9.5pt;font-family:"Georgia","serif";mso-fareast-font-family: "Times New Roman";mso-bidi-font-family:"Times New Roman";color:black">Orissa is seeing a nervous pace of industrialisation. The pace of industrialisation is high but arbitrary. There are many biggies ready to vulture upon the ore treasures of this state, yet they have to face infrastructural bottlenecks and local displacement resistance. On the issue of displacement every one conforming to whatever ideology has an opinion (Musa is no different; as with other intellectuals Musa's knowledge of the problem is newspaper-deep). But no one has a win-win solution to the loss-to-life and loss-to-economy. Well, everyone except the dummy intellectuals who simply resort to China-ism... kill 'em all. Throw 'em out. Build up.</span></p> <p class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt;line-height: normal"><span style="font-size:9.5pt;font-family:"Georgia","serif";mso-fareast-font-family: "Times New Roman";mso-bidi-font-family:"Times New Roman";color:black">However, it cannot be denied that the government is trying all it can to bring in investment. The roads are wide, four lane and you can skii over it. Roadwork is still ongoing at many places. As Lakx and Co (the group name decided upon) drove from Bhubaneswar to Chandikhol via Cuttack, they saw the difference simple infrastructural facilitation has brought about. Bhubaneswar and Cuttack have practically become one city, many suburb apartments having opened up in between the two cities. Property prices are sky rocketing and houses are fast encroaching the traditional zone of influence of Mahanadi.</span></p> <p class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt;line-height: normal"><span style="font-size:9.5pt;font-family:"Georgia","serif";mso-fareast-font-family: "Times New Roman";mso-bidi-font-family:"Times New Roman";color:black">Doars plans to make a farmhouse by the side of Mahanadi someday. Not that it is some novel idea. Coastal Orissa is mad about houses. An Oriya woman has just two dreams in her life: to make her son an engineer and to build her own house.This explains the preponderance of engineering colleges around Bhubaneswar and the booming price of real estate. While Bhubaneswar costs are just like any other small city, real estate prices are abnormally high. A sad result of this is that the Mahanadi once majestically flowing between Bhubaneswar and Cuttack looks so artificial and mellowed.</span></p> <p class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt;line-height: normal"><span style="font-size:9.5pt;font-family:"Georgia","serif";mso-fareast-font-family: "Times New Roman";mso-bidi-font-family:"Times New Roman";color:black">But these scenes don't deter the trio. Once they cross Chandikhol and make a detour towards Paradeep its green all around. Musa is surprised by how flat the land is. He is surprised how flat the land can be. Wide stretches of green fields and meadows lay on both sides. The farmer is busy in his field. He was at peace. The cow was busy chewing grass. How at peace she was. What's the difference between the farmer and the cow? Both were limited to their world; both had not seen the world. Ultimately for Musa it is not about the farmer and the cow. It is about why he feels so jealous. Is it because he knows he can never become a farmer?<o:p></o:p></span></p> <p class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt;line-height: normal"><span style="font-size:9.5pt;font-family:"Georgia","serif";mso-fareast-font-family: "Times New Roman";mso-bidi-font-family:"Times New Roman";color:black"><o:p> </o:p></span></p> <p class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt;line-height: normal"><b><span style="font-size:9.5pt;font-family:"Georgia","serif"; mso-fareast-font-family:"Times New Roman";mso-bidi-font-family:"Times New Roman"; color:black">Lalitgiri</span></b><b><span style="font-size:9.5pt;mso-bidi-font-size: 10.0pt;font-family:"Georgia","serif";mso-fareast-font-family:"Times New Roman"; mso-bidi-font-family:"Times New Roman";color:black"> </span></b><b><i><span style="font-size:9.5pt;font-family:"Georgia","serif";mso-fareast-font-family: "Times New Roman";mso-bidi-font-family:"Times New Roman";color:black">en route</span></i></b></p> <p class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt;line-height: normal"><span style="font-size:9.5pt;font-family:"Georgia","serif";mso-fareast-font-family: "Times New Roman";mso-bidi-font-family:"Times New Roman";color:black">There are three major buddhist heritage sites on the road to Paradeep. Lakx and Co skipped Udayagiri and Ratnagiri because these sights demanded a de tour of some 30 KM. Since Lalitgiri was just 2 km off the road they did go down there. And oh reader, that was a decision well taken. For on your journey to Paradeep you will find this the best topping on the travel-cream.</span></p> <p class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt;line-height: normal"><span style="font-size:9.5pt;font-family:"Georgia","serif";mso-fareast-font-family: "Times New Roman";mso-bidi-font-family:"Times New Roman";color:black">As the name implies Lalitgiri is a hill. The hill is fairly populated and you are sure to find some old fashioned huts made symmetrically on both sides of the road. Musa declares that he would make a hut for himself in the lap of this hill some day.</span><span style="font-size:9.5pt;mso-bidi-font-size:10.0pt;font-family: "Georgia","serif";mso-fareast-font-family:"Times New Roman";mso-bidi-font-family: "Times New Roman";color:black"> </span><i><span style="font-size:9.5pt; font-family:"Georgia","serif";mso-fareast-font-family:"Times New Roman"; mso-bidi-font-family:"Times New Roman";color:black">Some day</span></i><span style="font-size:9.5pt;font-family:"Georgia","serif";mso-fareast-font-family: "Times New Roman";mso-bidi-font-family:"Times New Roman";color:black">.</span></p><p class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt;line-height: normal"><span style="font-size:9.5pt;font-family:"Georgia","serif";mso-fareast-font-family: "Times New Roman";mso-bidi-font-family:"Times New Roman";color:black"> Next they visit the ruins of the Buddhist monastery. Well kept by the ASI, not much remains of the Buddhist centre. But what remains shows how grand the monastery must have been. The cows here are not like city cows - they are agile and unfriendly to strangers. They jump and run around if you chase them. And once they become familiar with you they even start playing around.</span></p> <p class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt;line-height: normal"><span style="font-size:9.5pt;font-family:"Georgia","serif";mso-fareast-font-family: "Times New Roman";mso-bidi-font-family:"Times New Roman";color:black">While the monastery has but been grounded, save but foundations of some congregation and prayer halls, the ASI has done a good job by maintaining a beautiful garden with choice flora. Doars has got a new SLR which he clicks on and on. Later in the day he would wonder why he does not figure in any picture.</span></p> <p class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt;line-height: normal"><span style="font-size:9.5pt;font-family:"Georgia","serif";mso-fareast-font-family: "Times New Roman";mso-bidi-font-family:"Times New Roman";color:black">The ASI has made a small museum that houses some of the statues still preserved. Inside the museum Lakx and Doars engage in an animated conversation about moksha, rebirth, the boddhisattvas, and mathura school of art. Musa, in the meantime, is awed by a lady's statue made to fantasy proportions. The name sign said 'Prajnaparamita'. The sign did not say who made it. His name is lost now. But whoever he was, he sure must have attained moksha: salvation. For one who has made such fulsome bosoms and has cut out this curvaceous woman has experienced the deepest of bliss. Overcome by clouds of perversion, Musa kept gazing at Prajnaparamita for a long time, his salivating mouth expressing a wide open lust. How beautifully has she been imagined!</span></p> <p class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt;line-height: normal"><span style="font-size:9.5pt;font-family:"Georgia","serif";mso-fareast-font-family: "Times New Roman";mso-bidi-font-family:"Times New Roman";color:black">After sometime Musa feels guilty. He was reminded of the numerous time in school during Saraswati Puja he had stared at the statue of the Goddess (the makers from whom the statues were procured were in love with their statues; they saw their statues as lovers not mother... as a result Saraswati often came in revealing costumes). He is also aware that Lakx anf Doars are getting suspicious. So he joins them and starts discussing Gandhara and Mathura schools of art.<o:p></o:p></span></p> <p class="MsoNormal"><o:p> </o:p></p></div>Unknownnoreply@blogger.com1