Blown away

I am totally in LUV with this woman and her music.

India lacks a good urban transport policy

I am compelled to write this blog as someone who has seen the travails of transiting 60 kms daily right through the heart of Hyderabad. Over the past 10 years, I have seen the volume of traffic grow in geometric proportions. The Government's response seems to be to keep on adding fly-overs, road extensions etc only to find that they are not enough for the ever growing number of private vehicles.In my opinion, the Government should stay away from adding new roads and concentrate on improving the public transport. A good public transport system will wean away the public from using their vehicles leading to decongestion of roads. In addition, emissions would go down and our dependence on fossil fuels would also go down leading to energy security. Remember that India still imports 75% of its oil requirements, a major portion of which is consumed for transportation needs.

Other measures should include providing clear and clean footpaths to the public. Hyderabad has practically no footpaths. More often than not a pedestrian is treated with contempt and arrogance by the commuters on vehicles. May be it is time to add one more fundamental right - the right to walk. We should also encourage people to use bicycles. Today, people riding bicycles have greater chances of meeting an accident than any others. Separate pavements need to be provided for them. We often see that people use vehicles even for commuting short distances. If the government could provide incentives for bicyclists and pedestrians, as mentioned above, I am sure that they would be more than willing to not use their vehicles.

People should placed at the center of any urban transport policy. Unfortunately, our policies in this regard are skewed. There is a clear danger that we might be caught in a vicious cycle of more roads, more vehicles and even more roads. A proper transport policy with the focus on people would cut down emissions, reduce our dependence on oil and improve the health indicators of our billion plus population. I only hope the Government starts looking at this new approach.

I cried listening to this!!!

Okay, I am so bored these days and what better way to kill time than be on YouTube. YouTube's got to be man's greatest invention thus far. In short, it brings TV to office....that could have been every man's dream. Go technology. Anyways, so I was exploring my fav artist Keith Urban's songs and came across this which I sure heard before but never paid much attention to it. Somehow, this time, it brought out all the feelings that have been pent up by me for the past 6 months owing to academic purposes. Here it goes

Can't get these lyrics out of my head

I just love these lyrics. However, if I hear the song, I find it a little karaoke

Here's the song BTW,



To kiss and tell
It's just not my style
But the night is young
And it's been awhile

And she broke my heart
Broke it right in two
And it's fixing time
But I'm feeling like I'm finally ready to
Find, find somebody new

I wanna kiss a girl
I wanna hold her tight
And maybe make a little magic in the moonlight

Don't wanna go too far
Just to take it slow
But I shouldn't be lonely in this big ol' world
I wanna kiss a girl

It's that moment when
You start closing in
First you're holding back
Then surrendering

It can start a fire
Light up the sky
Such a simple thing
Do you wanna try?

Are you ready to
Say goodbye
To all these blues?

I wanna kiss a girl
I wanna hold her tight
And maybe make a little magic in the moonlight

Don't wanna go too far
Just to take it slow
But I shouldn't be lonely in this big ol' world
I wanna kiss a girl

'Cause, baby, tonight
It could turn into the rest of our lives
Oh yeah
Are you ready?
(Are you ready?)
Are you ready
(Are you ready)
To cross that line?
Put your lips on mine

Ooh, put your lips on mine, baby

Do you wanna try?
Are you ready to
Say goodbye
To all these blues?

I wanna kiss a girl
I wanna hold her tight
And maybe make a little magic, baby

Don't wanna go too far
Just to take it slow
Don't want you to be lonely
I shouldn't be lonely

I wanna kiss a girl
I wanna hold her tight
And maybe make a little magic in the moonlight
Don't wanna go too far
Just to take it slow
But I shouldn't be lonely in this big ol' world
I wanna kiss a girl

I said I wanna kiss a girl
Whoa ho, whoa ho
I wanna kiss a girl
I wanna hold her tight
I wanna make a little magic
Out under the moonlight

Ooh I wanna kiss you now

The Human Genome Project

The Human Genome:
 A genome is all the Genes and the DNA in an Organism. Genes carry vital
information for making all the proteins required by an organism. These proteins
determine how the organism looks, how well its body metabolizes food or fights
infection and sometimes even how it behaves.
 DNA is composed of four types of chemical bases, Adenosine, Thymine,
Cytosine, Guanine (A,T,C,G) that repeat billions of times throughout the genome
along the DNA strands. The human genome has 3 billion pairs of bases.
 The particular order of As, Ts, Cs and Gs is extremely important. The order
dictates all of life’s diversity and whether an organism is human or not.
In 1987, the US Department Of Energy(DOE) felt that understanding human genome was
as essential to the progress of medicine as human anatomy was to the then state of
medicine. A project called ‘The Human Genome Project’ was formally announced in
1990 by the DOE and the US National Institutes of Health (NIH) through its National
Human Genome Research Institute (NHGRI). It was not meant to study the genome of
every individual on this planet but of a few donors.
The Human Genome Project:
It began in October 1990 and was originally planned to last 15 years, but rapid
technological advances accelerated the completion date to 2003. The project cost was
estimated at about 2.7 billion dollars (FY 1991 dollars). The project was headed by Ari
Patrinos of the DOE and Francis Collins of the NHGRI. Apart from the US, various other
countries like China, France, Germany, Japan and the UK participated in it. The HGP not
only studied the makeup of human genes but also those of several non-human organisms.
These include the common human gut bacterium Escherichia coli (E. Coli), the fruit fly
and the laboratory mouse.
Its main goals were to
 Identify all the human genes (approximately 20,000 to 25,000) from both a
physical and functional standpoint.
 Determine the sequences of the 3 billion chemical base pairs that make up human
DNA.
 Store this information in databases (GenBank) available to anyone on the
Internet.
 Improve tools for data analysis.
 Transfer related technologies to the private sector. It catalyzed the multi-billion
dollar US biotech industry and fostered the development of new medical
applications.
 Address the Ethical, Legal and Social Issues (ELSI) that may arise from the
project. About 5% of the annual budget was dedicated to this purpose.
Benefits:
 The data obtained from this project helps in administering genetic tests that can
show predisposition to a variety of illnesses like breast cancer, liver diseases and
so on. This data can also be used to develop preventive medicine.
 It will facilitate medical advances in areas of clinical interest. Genome maps have
aided the researchers in identifying the gene responsible for various genetic
disorders like Alzheimer’s disease. Researches could use this knowledge to even
replace the defective gene through gene therapy.
 A spin-off program called the Microbial Genome Program sequenced the
genomes of bacteria useful in energy production (bio-fuels) and environmental
remediation.
 Helps us in assessing risks caused by exposure to radiation and other mutagenic
chemicals.
 Helps us in understanding human evolution and the common biology we share
with all of life.
 DNA Forensics for identification of individuals.
 Helps us in developing disease, drought resistant crops. For example, by
analyzing the genome of solanum tuberosum (White Potato), we can develop
drought, disease resistant potato seeds.
Current State:
Though the project was announced to be complete in April 2003, studies continued and
the complete sequence of the last chromosome (Chromosome 1) was announced in 2006.
Also, there are a few other areas of the genome that are yet to be completely sequenced.
These include the centromeres (centers of chromosomes) and the telomeres (ends of
chromosomes). Due to their high repetitive DNA sequences, current technology isn’t
adequate to sequence them. We can say that more than 90% of the genome has been
sequenced so far. With the advent of new technologies, the remaining areas will be
sequenced sometime in the near future.
Two other spin-off projects that are worth mentioning here are the HapMap and the
ENCODE (Encyclopedia Of DNA Elements ) projects. The DNA sequence of any two
people is 99.9 percent identical. The small variation, however, may greatly affect an
individual's disease risk. The HapMap tool will enable researchers find those genetic
variations that affect one’s health and his response to drugs, environment. The ENCODE
project aims to identify all the functional elements in the human genome sequence. It will
identify the precise location of all the protein encoding and non-protein encoding genes
of the genome.

Defeating Naxal Violence

The recent increase in the spate of naxal violence(Lalgarh West Bengal, Bastar region, Chattisgarh) must have startled every average Indian citizen like me. One question that must have come to everyone's mind was, are our security forces well-equipped to fight this menace? In this blog post, I wish to put forth my views on why we are not approaching this problem in a correct manner and what will it take to solve this decades old evil.

Naxal violence constitutes an asymmetric war that needs unconventional responses. The traditional response based on unleashing the armed forces is not enough. I call this war asymmetric because of the disparity of resources between the opposing sides. One one side we have the government with all its material resources and well-equipped armed forces, while on the other side we have the ill-equipped but ideologically driven naxals. Despite this difference in potential, the armed forces have only been partially successful in making inroads. To understand why this is the case, it is imperative to understand the roots of naxalism.

Ever since independence, chronic poverty and gross inequalities between the rich and the poor have plagued vast sections of our society. The State, for various reasons, has not been able to provide basic necessities like water, sanitation, nutrition, health, education, housing and employment guarantees to the majority of our population. In addition, corruption, red-tapism in our bureaucracy, political insensitivity and common instances of high handedness and harassment meted out to the poor and the disadvantaged have only disenchanted the people with the democratic process. Added to this, we have a section of people who feel that they have been socially excluded and marginalised. Certain elements of these sections decided to leave the mainstream and take up arms to fight the state and its insensitivities. They hope to achieve an egalitarian society through violent means.

Their actions include destroying government properties, killing the security forces, threatening the rich for money and so on. They are prepared to do socially horrifying things in order to pursue their goals. They are well aware of their insufficient material, human resources and hence resort to unconventional warfare like guerrilla tactics. They generally pick soft-targets and seek to destroy every symbol of government authority. When the round-the-clock media brings this violence to our homes, it provokes indignation among us. We seek an immediate response from our political masters and security forces. The immediate reaction of the State is to ban these outfits, pass tough legislations and unleash the armed forces. In the course, basic human rights are violated and sometimes the common man becomes a victim leading to further alienation of the people. Thus we enter a vicious cycle where violence feeds further violence.

This should bring us to the realization that conventional strategies based on military doctrines are simply not enough to fight this menace. Such doctrines are more suited to situations where we have countries fighting conventional wars. In this case, the enemy is invisible and comes from the common population. Once his job is done, he melts away into the population and it becomes difficult to track him. For the security forces, it is like searching for a needle in the haystack.

The first step then towards fighting naxalism is to endear to the local population. Instances like taking over land from the local farmers for development purposes without properly rehabilitating them, constructing projects leading to displacement of tribals only serve to further alienate the people. The State has the obligation to consult the effected parties before embarking on any development projects. If the development project is in the national interest and the farmers are not ready to part with their land, the government needs to come up with effective rehabilitation measures under the terms set by the effected parties.

Next, the politicians need to realize that armed strategies can only be quick fixes putting the real issues on the back-burner. The real issues relate to distributive social justice and provision of basic necessities. They need to come up with structural reforms that ensure eradication of poverty and minimisation of inequalities. Only then can we win the hearts and minds of the people. Once we have the people on our side, the local support for the insurgents would automatically decrease.

To conclude, enlightened and visionary approaches based on just and political solutions should replace chaotic and myopic approaches based on military doctrines. We need the civil society, media and politicians to come together and debate more on the real causes of naxalism and offer practical solutions. If India were to emerge as an economic super power in this century, it is imperative that it solves one of its major societal menace, naxalism as soon as possible.

Women Reservation Bill

The Women Reservation Bill(WRB) has undergone a roller coaster ride ever since its inception by the Deve Gowda government in 1996. Many a time, the bill has been introduced in the parliament without getting passed due to lack of political consensus. The bill seeks to reserve 33% of seats in parliament and state legislatures to women. The proponents of the bill argue that such a move would contribute to the overall empowerment of women. Women have been historically deprived in India. They were considered subservient to men through long periods of our history. The proponents believe that increased political participation of women would help them fight the abuse, discrimination and inequality that they still suffer in the society.

The opponents however argue that only the women from elite groups would be able to take advantage of the reservation. The disadvantaged sections of the society would continue to be marginalized. So they propose quotas within the quota. Some others argue that such a move is only a populist move and could never really contribute to the empowerment of women. They cite examples of how certain women like Jayalalitha and Mayawati were able to achieve political success even without any reservation. They rather prefer fighting against societal ills such as dowry harassment, female foeticide, domestic violence than passing such symbolic measures.

Given these opposing arguments, it is highly unlikely we would achieve any consensus in the near term. The government should go ahead and pass the bill without any hesitation. They certainly have the numbers to pass the bill given that the main opposition party supports the bill in its present form. One only needs to take a look at how similar reservations in the Panchayti Raj (via 73rd constitutional amendment) have gone a long way in empowering and improving the status of rural women.This is a golden opportunity for the men of this country to correct some of the prejudices that they hold against women.

Nanotechnology

Nanotechnology is the application of scientific and engineering principles to create and utilize very small things. Such small things are usually of the size between 1 and 100 nm (10-9 m). The principle underlying nano-science is that some substances exhibit surprising and useful properties when reduced nano-scale. For instance, some substances that behave as insulators in their bulk form when reduced to nano-scale become semi-conductors. Scientists could leverage this peculiar phenomena in various applications.

Currently, two particular nano-structures are dominating the research. These are the nano-wires and the carbon nano-tubes. Nano-wires are wires whose diameter equals 1 nm or so. These wires could be used to create extremely small transistors for computer chips. It would enable us create small and powerful computers at cheap rates. In contrast, nano-tubes are obtained by rolling a sheet of carbons atoms into a cylinder like structure. Depending upon how you roll the sheet, you could obtain different properties from the nano-tube. For instance, by a particular arrangement, we could obtain nano-tubes that are a 100 times stronger than steel but six times lighter. Such nano-tubes could be used in the building material of air-crafts and cars rendering them lighter and fuel-efficient.

Some of the other current applications in nanotechnology include

1. Sunscreen
--------------

Sunscreen lotions made of zinc oxide nano particles do not give the traditional white tinge when applied to the skin.

2. Clothing
--------------
By coating fabrics with zinc oxide nanoparticles, we can obtain better protection from UV radiation.

By coating fabrics with titanium dioxide nano particles, we can obtain clothes that clean themselves. That is the particles break down food and dirt stains in the presence of sunlight.

Some other nanoparticles could be utilized to produce stain resistant, wrinkle resistant clothing.

3. Scratch resistant coatings
-----------------------------
Adding aluminum silicate nanoparticles to the scratch resistant polymer coatings improve their effectiveness considerably. Such scratch resistant coatings could be found on cars and eye lenses

4. Health
----------
Nanosized robots could be inducted into the body to fight cancerous cells or malignant foreign bodies.

5. Environment
--------------
Nanosized robots could be introduced into the atmosphere to rebuild ozone layer, reduce CO2 concentrations or they could be used to clean ocean waters off pollutants.


The above applications are only a small indicator of what this technology could accomplish. In fact we could pretty much create anything we want - diamonds, food etc by manipulating the atoms. Such applications could have certain ethical concerns and impact the world in a tremendous manner. Moreover, some nanosubstances are considered toxic. Nevertheless nanotechnology is here to stay and we haven't seen its complete potential yet.

India - Afghanistan relations

India and Afghanistan have shared close cultural ties throughout history. India has supported successive governments in Afghanistan during the cold war period. For instance,it has supported the regime installed by the Soviet Union after its occupation of Afghanistan. The relations however soured with the arrival of the Taliban regime in Kabul during the 1990s. During this turbulent period, India supported the efforts of Northern Alliance to defeat the Taliban. The terrorist attacks on the USA in 2001 have once again turned the tide in relations. With the overthrowing of the Taliban by the NATO and the emergence of democratic forces in Afghanistan, India sought to revive the ties. The relationship ever since could be summarised in the following points.

1. India has steadfastly supported the new government at Kabul especially the government of Mr Hamid Karzai.

2. India has been the region's leading donor with promised aid to the tune of more than a billion dollars (750 million USD + 450 million USD).

3. India has sought to improve the infrastructure of this war torn country by building roads, dams, electricity transmission lines, schools, hospitals and even the new parliament building in Kabul which is a true symbol of democracy.

4. It built a road link between Zaranj and Delaram which is eventually connected to the deep sea Iranian port of Chahbar. This link provides an alternate route to Afghanistan by avoiding Pakistan. It is also working on the construction of Salma dam(power project).

5. It is involved in the training of Afghan civil servants so that they could administer their country more effectively.

6. India has played a major role in the entry of Afghanistan to SAARC.

Afghanistan is a key country for India to develop strong relations because

1. It acts as a gateway to the oil rich central Asian countries like Turkmenistan and Kazakhstan.

2. It could be used as a leverage against Pakistan. Pakistan is indeed threatened by the growth in relations between these two countries. Pakistan has traditionally viewed Afghanistan as its own backyard.

3. The reconstruction efforts in Afghanistan provide business opportunities for Indian companies.

SEZs boon or bane

An SEZ or Special Economic Zone is a geographically demarcated area which is treated as a foreign territory for the purposes of taxation, labour laws etc. The main objective of a government to set up an SEZ is to encourage domestic, foreign entrepreneurs to set up industries in these zones. The new industries, it is hoped, would generate additional employment and promote economic growth. By offering tax exemptions and freedom from application of various stringent labour laws, the governments woo huge investments in these areas.

On paper this seems to be a good idea and the Chinese experience has only validated it. In the 1980s, the Chinese set up a few SEZs (6 or so) along their coast to promote export oriented growth. They were able to successfully attract huge foreign investments in these zones. Thus China became the pillar of many manufacturing industries like electronic parts, automobiles and spare parts etc. Compared to the Chinese, the Indians took time in this regard. It was only in the late 1990s and early 2000s that the government decided to promote SEZs as an instrument of economic growth.

Since then, it has been a rough ride for the governments promoting SEZs. There were frequent conflicts between various stakeholders like the farmers whose land was to be acquired to set up the SEZs and the industry owners. It has also been alleged that the SEZs were not successful in promoting the kind of economic growth that the government had hoped for. Nevertheless, SEZs did offer a few benefits to the Indian society. They increased the productive capacity of the country by providing quality employment to the millions of educated youth in this country. Thus SEZs are both a boon and a bane.

Lets first discuss the drawbacks of the concept of SEZ and then focus on how to correct these drawbacks so as to ensure that SEZs play a fruitful role in the overall economic growth of our country. The main drawbacks are


1. The SEZ act offers a whole host of tax breaks to the companies that are ready to invest in them. Typically, a company doesn't have to pay income tax on their profits for the first 5 years and then pay 50% for the next 2 years. This could further be extended to 3 or more years. In case of the IT industry, there are instances where in the companies do not have to pay tax for 10 years or so. It is popularly knows as tax holiday. Further, the developers building the SEZ are exempt from taxes on cement, steel they buy and the machinery they might import.


These tax breaks harm the fiscal position of our country and are disproportionate to the export earnings that the companies generate. The moot point here being whats the advantage of offering tax breaks when in most cases, these SEZs contribute to only about 5% of India's total exports. The Small and Medium Enterprises (SMEs) in the Domestic Tariff Area (The area outside the SEZ which is not applicable for any special treatment) earn up 35% of India's export earnings. By creating uneven environment for them to compete, we are only trying to kill the goose that lays the golden eggs.

2. There have been frequent conflicts between the farmers whose land was to be acquired to set up the SEZ and the government, Industry. It has been alleged that government procures the land from the farmers at a price below the prevailing market rates. Some wonder why the government procures the land in the first place. It should be left to the farmers and the industry to decide the price etc. Moreover, there has been criticism that some of the most fertile lands have been diverted to set up SEZs. At a time, when India isn't completely food secure and millions of its people are suffering from hunger and malnutrition, it is not advisable to convert fertile farm land into SEZs. Finally, the farmers who have lost the land lose their livelihood and have to relocate to other areas. Thus they become refugees in their own country. Monetary compensation cannot alone guarantee livelihood to the farmers who lose their land. It is just not the farmers who own the land that are effected. Tenant cultivators and sharecroppers also lose their livelihood.

3. There has been criticism that not all the land demarcated for an SEZ is used to produce goods and services. Only about 25% is used to set up factories etc. The remaining land has been used by the developers to develop real estate and make money out of it. Also, there is no obligation on the companies to export a certain percentage of their output to earn foreign exchange for the country.

4. The SEZ act allows the government to deny labour benefits for the people working in the SEZ. For instance, the the government may decide that for a particular SEZ, the Minimum Wages Act may not apply. This is a gross violation of the directive principles of state policy enshrined in our constitution. For example, article 42 of the constitution urges the government to make provision for just and humane conditions of work. It has been alleged that labour commissioners have been stripped of their rights to inspect SEZs and ensure that humane and safe conditions prevail there.

Thus the current policy of SEZs has seen many drawbacks and it has the potential to raise many social conflicts that India could ill afford if it were to emerge as a first rate economic power by 2020. The following remedies are being proposed to overcome the hurdles stated above.

1. Only the industries within the SEZ must be entitled to tax breaks and that too for a limited period like 5 years with no provision for extension. The SEZ developers should not be entitled to any benefits. There should be a rationalisation of tax between SEZs and Domestic tariff Areas to ensure that the industries in DTAs are not at an advantage. It has been observed that SEZs have not been very successful in adding new investments. There have been cases where in the investments have moved from DTAs to SEZs to avail tax benefits.

2. The farmers must be entitled to compensation at prevailing market prices. The government needs to come up with a base market price for each location and industry would have to pay a price more than the base price while acquiring land. The farmers must be entitled to equity shares in the companies and at least one member of their family must be provided wage employment in the SEZ. The effected must also be entitled to a percentage of small contracts emanating from the companies. If there is a large scale displacement then the government must ensure that the whole community is properly rehabilitated.

Fertile land should never be diverted to setting up SEZs. Saline land and land suffering from various abiotic stresses should be used to set up an SEZ. If acquiring fertile land is inevitable then only rain fed and single crop lands must be diverted. Farms that produce multiple crops within an year and which have good irrigation facilities must never be diverted.

3. There should be a regulation that at least 50% of the land acquired must be used a a processing area. The rest could be used to set up schools , buildings, houses for the employees working within the SEZ. Moreover, companies must be obliged to export at least 60% to 70% of their output so as to meet the main objective of an SEZ - export oriented growth.

4. Labour laws must be applicable within SEZs also. The labour commissioners must have the right to freely inspect the SEZs and report any gross violations with respect to conditions of work. There is simply no justification in providing exemption from labour laws.

To conclude we can say that government policy with respect to SEZs must ensure a fair deal to all the stakeholders - entrepreneurs, SEZ developers, farmers and workers. India must pursue industrialization with a human face. Both the industry and agriculture must advance in a mutually reinforcing manner. SEZs must not be treated as foreign enclaves where in entrepreneurs have unlimited freedom to exploit the labour and maximise profits.

The endurance of my beloved country, India

History tells us how my country had endured bloodshed for more than 2000 years. My forefathers hoped that the pain would end in 1947. For most part of the last 60 years, it did. But it has come to haunt India again in the form of terrorism. Not a month goes by without any terrorist attack. India again endured, like it did for centuries and then came Nov 26, 2008. The day that would be etched in the history as one of the darkest. The day when scores of people were left at the mercy of murderous criminals. As I write this, the crisis is still going on. I begin to wonder if this great country has anything left to endure even more. Some say that this crisis will be the glue that would bring together India's already fractured social fabric while others insist that this crisis will create a communal divide beyond the tipping point and tear my country apart. In my opinion both are distinct possibilities. We should seize this moment to achieve the former. This day should be remembered as the day when the whole of India stood up and said in one word 'We are one and we will not give in to the machinations of these terrorists'. We should build the society again brick by brick. Yes, it is going to be a long arduous task but let me tell you, it is our only hope. If we let go of this opportunity, we would end up as a bunch of 25 regions trying to live together for no apparent reason. I hope that common sense would prevail.

I never thought I would cry watching a news channel. It happened today. Something in me tells me to give up what I am doing currently and strive towards rebuilding the society in some capacity. I do not know if this is knee jerk reaction but I certainly know that a thought has been seeded in my mind.

Before I end this, I would like to thank all those brave men who showed up for duty to protect their fellow human beings. India salutes you! I sincerely hope that all those politicians who were trying to divide us based on regionalism realize that the people who saved their city are indeed from other parts of the country. Jai Hind!

The global financial crisis explained.

'Global Credit Crunch', 'Global Economic Turmoil', 'Global Meltdown' are some of the most widely used terms now-a-days to reflect the current economic situation worldwide. So how did this crisis evolve? Who is responsible for this mess? Why has it effected the entire world and finally Who is going to ultimately pay for this? are some of the questions that I am hoping to answer in this post.

Before getting there, let me explain how any 'traditional' bank in India works. Banks like companies strive towards earning profit. Home loans sector is one of key contributors to its profits. An aspiring home owner goes to a bank for a home loan. The bank verifies his credit history and on being satisfied that the customer would be able to repay the loan, issues the home loan. The borrower(home owner) starts paying monthly interest on the principal he owes to the bank. To ensure that the borrower pays interest on a regular basis, the banks take the house as mortgage i.e., if the borrower is unable to pay the interest on a regular basis, the bank has the right to auction the house and retrieve the principal. In India, this is where the story stops. However in countries like the USA, the banks go a step further and sell all these mortgages to third party institutions such as the now infamous Lehman Brothers. There third party institutions, then convert these mortgages into financial products and sell them to investors on the Wall Street. This process is called securitization. Thus, a link is established between home loan and the Wall Street. Now what happens if a lot of home owners default on their home loans? This is precisely what happened in the USA. The banks lent money to a lot of people whose credit history was not good at higher interest rates(aka sub-prime lending). They banked on the rising real estate prices to secure their loans via mortgage. But when a lot of customers began defaulting, the bubble burst. Real estate prices plummeted and everyone from banks to the financial markets got effected.

The banks ran out of the cash as they were unable to retrieve their loans, either from the customer or from auctioning the mortgages(houses). There was a liquidity crunch. Banks also stopped lending to other banks over fears that the other banks might fail. So, a vicious cycle started. Now, we should remind ourselves that availability of credit is the key for the growth of any economy. For example, entrepreneurs need credit to start/run companies. When there is a credit crunch, the whole economy is effected and if that economy is US, then the whole world is effected as most countries rely on exports to the US. For example, the software, BPO service sectors in India are heavily dependent on the US for their survival or profits. If these are effected then the jobs of many young Indians are effected. As Indians begin to spend less and less owing to such fears, the Indian economy is effected. So is the case with China which exports most of the manufactured goods to US and EU.

Why did banks resort to sub-prime lending? As explained, one of the reasons was that they assumed that even if some customers default on the loans, they will be able to retrieve the principal by selling their mortgages. This assumption was fine as long as the real estate market was up. But as the market slowed down, it started hurting the balance sheets of the bank. One should also blame the Fed for not installing proper regulatory measures to arrest this whole process. All in all, it was a collective miscalculation on the part of banks, investment banks (those third party ones) and the US Fed (regulatory authority) that led to this crisis which is threatening the world in many ways.

So, what is the way out? Last month, most of the governments in Europe and the US have decided to directly pump money into the banks to ease the crunch. Will it work? Only time will tell because at present, there is a complete lack of confidence in the financial world. No one is sure if the money they lend is ever going to come back to them, let alone the profits. Even if the governments provide them cash, they may not be ready to lend. This crisis is also a crisis of confidence. In my opinion, it will take at least 18 months to gain back the confidence and for everything to fall in place. Until then, the markets will be volatile and people will spend nights in fear of losing their jobs and dreams.

Co-existence of agriculture and industry

Events taking place in Singur (West Bengal) have been dominating the news in Indian media for the past couple of months. To recap, West Bengal government acquired farm land totaling 997 acres from the local population and handed it over to the Tatas to setup an automobile industry. The Tatas hope to produce the world's cheapest car 'Tata Nano' from this plant. If and when they do so, it will be a proud moment for every Indian and it could very well transform India into a major low-cost automobile producing destination. That would eventually mean a complete transformation of the livelihood of people living in and around Singur. However, all these dreams are about to be gutted due to the agitation of the Trinamul Congress supremo Mamata Banerjee. She claims that most of the land (about 300 acres) has been acquired without the assent of their owners. She demands a return of this land. The WB govt cannot return this land without effecting the project. The Tatas need most of the 997 acres to setup the mother plant with all the ancillary plants coming around its vicinity. So, if the WB govt chooses to return these 300 acres, the Tatas would very well leave the state and setup the plant elsewhere.

All this brings to central question of whether industry and agriculture can co-exist without impinging on each other. In my opinion, it is not a question of one losing over the other. Both can and should co-exist for the prosperous future of our nation. All it needs is a central policy that lays down the approach each state govt should follow in allocating or acquiring farm land for industrial purposes. Each state government should develop a land use plan earmarking land for various purposes such as industry, agriculture, communications and service sectors. The Land acquisition act should be suitably amended to ensure fair compensation to all those farmers losing their land. The farmers must be engaged through the entire process of acquisition. Referendums such as the one held in Raigad Maharashtra could be held to guage the mood of effected farmers. Once the farmers accept the acquisition, they should be involved in the process that decides the compensation. And finally, the local population should be provided a stake in the industry through jobs or as shareholders in the company.

Industry will ensure non farm income for the rural population. Mass suicides could be averted if the farmers could be provided assured income and work security. When they lose a crop due to flooding and so on, they could resort to non farm labor in the local industry. China provides an excellent example as to how an all round human development is possible when work and income is assured. In the 1980's China launched a two-pronged strategy to improve the lives of their rural population. First, steps were taken to improve the yield of their crops by setting up good irrigation infrastructure and using latest technologies. Today, the average yield of Chinese farms is twice that of Indian farms. Second, Township and Village Enterprise(TVE) movement was launched to shift a 100 million farmers to non farm employment sector. This transformed China into the factory of the world. This strategy completely transformed the lives of their rural population. As a proof, the child malnutrition rates of China dropped to an impressive 7% while that of India is currently 46%.

Thus Industry and Agriculture should prosper together if we are to see a developed and hunger free India. We should not destroy the future of the young rural population by denying the fruits of rural industrialization. They will not forgive us if events such as in Singur take place on a regular basis. Diversification of rural employment is the key. It should be spread across all the sectors - primary, seconday and tertiary. Only then can we ensure quality life to the rural population.

Does India need a Jon Stewart?

Jon Stewart, the quintessential American political satirist, is known for criticizing any flawed government policies with mind blowing humor. His impromptu show, 'The Daily Show with John Stewart' which features on most weekdays on American Television has a strong base in the young American population vexed with their Government's all round failure. The young vent their frustration by tuning into his show night after night. Over time, he has become so influential that major politicians like Obama and Hillary have featured on his show. Some say that he had a role to play in Hillary's victory in at least one of the states (She featured on his show via satellite the night before that primary) during the Democrat primaries. His ease in dissecting the daily news and presenting it to the audience in a humorous way is outstanding. Regular performers on his show like Stephen Colbert have made it big once they left the show. I cannot but compare the frustration amongst the young Indians with those in America. Both are disillusioned by their scandalous politicians, more so in India. Do the young in India need a John Stewart who can criticize the the daily ongoings(bad ones) in the Government with no fear? I certainly think so. Somebody like him could easily galvanize the youth and generate awareness among them about all that is bad in the current Indian Politics. The youth of today has been criticized for not showing interest in Politics but we need to understand that most of them need an entertainment medium to dissipate information regarding politics. Nobody seems to have the time to listen to serious news (no...not the ones on Aaj Tak), let alone read a newspaper.

Assuming that we find one in the near future, will the Indian society give him the 007 license for criticism. Will the national parties be mature enough to take the criticism in their stride? Or, will they unleash their goondas for allegedly "hurting" their "sentiments"? Only time will tell but we need a Jon Stewart in the immediate future to save the country's youth from getting totally ignorant of what's happening around them.

Bryan Adams - 11

American Idol for sure!!!

I do not know if he will win this year's competition but to me he is the next American Idol. Period.

Change of heart!

I am tracking David Archuleta, Danny Noriega and Alaina Whitaker this year and I strongly believe one of them is going to make it. Which one? My heart says David Archuleta for now. He is too talented for a 16 year old. The only threat I see is, can he hang in there when the going gets tough in the following weeks?

American Idol 2008???

Very impressive and he is my fav so far this year

Bryan at Sacramento.

Bryan is releasing his new album titled '11' this March. Excited about that. What's even more exciting is that one of the singles from that album will be played around the world this Jan 28 on radio. I wish he releases the song to iTunes.

It goes 'I thought I'd seen everything'. There is a chance that he might sing this at his concert next month in Sacramento. I have plans to attend that. Let's see how it goes.

Bryan chante en français!!!

I knew Bryan was Canadian born to English parents but I never knew he sang a few in french. This is the first I've heard and the lyrics are 'superbe'!!!



Je suis là, me voilà
jamais je ne pourrais vivra sans toi,
me voilà, à tes cotés
ce soir j'ai le droit de rever.

un nouveau monde, une nouvelle vie,
nos deux coeurs battent au rythme de la prairie,
un nouveau jour, une nouvelle joie,
je n'attendais que toi, me voilà

Nous voilà, et tout commence,
j'attend depuis longtemps ce jour de chance,
oui! nous voilà, toujours ensemble,
ici sur la terre qui nous ressemble...oh...


ohhh... me voilà

oh me voilà, oh me voilà
à tes cotés, oh me voilà
et tout à coup, le monde est transformé
Me voilà ohhh, me voilà
je resterai, rien ne pourra
m'empecher , oh me voilà

je suis là