Wednesday, November 16, 2011

State Bailout Argument -Kingfisher Case

 State Bailout Argument -Kingfisher case:

It is laughable that ,some free market protagonist aggressively pushing the argument of state intervention by bailing out of kingfisher airlines with financial package,like USA bailing out  Banks,financial institutes and auto industry,the corporate can reap the profits and enrich themselves,but instead of bearing the losses on its own,it expect the state to intervene and bail them out at the cost of tax payer money,It sounds ridiculous to push such theory,even if,Kingfisher  services were good,similar demands were also made during Satyam scandal.

How many India Inc. contributing to the concept of social responsibility or cooperating with state responsibilities, ,ironically, it never bothered to donate their profits for social causes,contrastingly,they go for expansion mode,specially ,when they are reaping profits. 

Nationalization Vs Bailing Out ;

Nationalization means  reverse privatization ,state taking over the ownership and assets of private enterprises ,free market protagonist demanding financial support to Kingfisher ,but not nationalization, state should bear their losses,make it profit-making enterprises with out ownership control.its demeaning to bailout private airlines ,when state- controlled Air India,itself facing myriad problems with out any pro-active intervention of the government.
Nationalisation - a success story ;
In year 1969,14 largest banks were nationalised by then Prime Minster late Mrs.Indira Gandhi through bill "Banking Companies (Acquisition and Transfer of Undertaking) "which was passed by Indian parliament, and it received the presidential approval on 9 August 1969,the said move was hailed by late Lok Nayak Jaya Prakash Narayan,the nationalised bank played crucial role in Indian Economy through credit delivery, only after liberalisation policy of Late P.V Narsimha Rao in early 1990,private  banks [UTI,HDFC,ICICI ]came into picture.

Bailing out means opening Pandora Box;

Any decision to bailout loss making private sector airlines bound to open Pandora box with similar demands from other sectors,such bailout at the cost of tax payer money is mockery of socialism,which is basic structure of the constitution.The common people are aware ,India still a socialist economy,still the word 'socialism' still exists in the preamble,the nationalisation is better option than bailout .  

Double Standards of corporate India;
The corporate giants in the recent Confederation of Indian Industry  conclave was highly critical of UPA-II deadlock over liberalisation policy,warned that any slowing down will hurt investment climate and on the other hand,some free market policy experts are pushing the argument of bailout loss- making private sector unit.This is some thing,which is beyond the comprehension of common man.

State Intervention in the Crucial sectors : 

There is growing demand in India for nationalisation of precious natural resources or national wealth  like mining for proper and optimum utilization for national building.
The protogonist for Occupy Wall Street advocates the policy of state intervention in crucial sectors to do justice to the  commoners ,who are at receiving end in the world economic crises.  

The world is witnessing crucial changes due to "World Economic Crises",there is a visible change in the people's perceptions and beliefs,due to various factors like debt crises and rising unemployment in the world.
The people are preferring job security than corporate's heavy pay package,the government job looks attractive career option,when compared to un-secured or unpredictable private sector jobs.
The concept of reverse -privatsation looks attractive option and only viable alternative at this juncture. 


References:
  1. http://en.wikipedia.org/wiki/Banking_in_India
  2. http://www.equitymaster.com/5MinWrapUp/detail.asp?date=11/16/2011&story=4&title=Bailout-vs-bankruptcy--Which-one-is-better 

Sunday, November 13, 2011

Marxism or people's resistant movement in USA &other parts of the world?

Marxism or people's resistant movement in USA&other parts of the world?


The entire western world's  sworn enemy was USSR and its Marxist communist ideology.There was cold war between USA and USSR for more than four decades[1946 to 1991]. The world was divided into capitalist block  and socialist blocks before dramatic collapse of USSR and eventually got disintegrated into pieces,which lead to collapse of communist regimes in eastern European countries and surprisingly East and West Germany got united after dismantling of Berlin wall.
American and other western people,now loving pro-labor radicalism and advocating labor activism,once most hated basic principles of Karl Marx like dictatorship of proletariat,workers of the world unite for common good and workers participation in the management ,recently,Ohio state bill was defeated,on 8th November,2011, Ohioans voted   to overturn the state's new law limiting collective bargaining rights for public sector employees, a victory for organized labor and their Democratic allies in the key electoral battleground,which was purportedly to be  a anti -labour bill or capitalist bill,all workers got united under one banner ensured that anti-labor bill is defeated ,this sparks debate that whether same Marxist principles really inspiring Americans or its sheer people's resistant movement against  corporate or state neglect of commoners and on the other hand,there is a huge movement against corporate greed called" Occupy Wall Street Movement",which has already spread to several countries.


What made people angry and restless?

The accumulation of unjust profits by corporates,unjust financial system or unregulated financial system  or unproductive expenditure by the state and sheer neglect of working classes,where as,their demands are  reasonable ,just and simple,they are only demanding affordable housing ,affordable healthcare and over all,the decent standard of living to ensure that children don't suffer,they don't have unreasonable demands  like luxury villas in moon or Hawaiian island holiday package as 'Leave travel package'. [LTC]. They are demanding basic amenities ,as cost of living rising at alarming levels due to high inflation and world economic crises.


The insecurity creeping in people's mindset:


The labour unrest is reported in many countries due to world economic and debt crises.Another issue is rising unemployment rates in the developed countries and developing countries,which makes people uncomfortable and restless,resulting mass people's resistant movement.There was riots in London by organised by the unemployed youth,which reminds West Indian British labour unrest of 1934–1939 ,which begin after world war -II,which highlighted income inequalities in Britain.Most communist believe that,If present unrest  continue,it may lead to  Bolshevism.


Indian Dilemma  &World crises.

The hundreds of Indian expatriates are expected to return home ,in  next two years  from USA and other countries ,due to uncertain economic conditions,adding to unemployed population,where as India is already facing labour unrest and huge educated unemployment,recently,there was huge labour strike in Maruthi Suzuki Ltd,Hyundai,MRF,Toyota,Honda and Nokia,due to ineffective labour dispute resolution.

There was labour unrest in some of the industrial areas of Andhra Pradesh and Tamil Nadu,which speaks resurgence of Trade Unionism,pushing case for greater role of workers in the management,protagonist of free market are worried about new resurgence of trade union,which will hamper investment climate.The fact of the matter is there is  a need to address the issue of fair wages,job security and social security measures,which will eventaully reduce labour unrest.It is better for people,who often shed crocodile tears about labour unrest is hurting investment climate, should make an effort to  understand the labour point of view and their woes.

There will be no organisation with out work force and with out orgaonsation,there can't be work force,both are indispensable in world,when organisation earn profits,workers should be given due share ,valuing their commitment and hard work.
The Human problems can be solved with humanitarian approach and sensitive mindset,no authoritarian state can survive by creating fear and in security in the work force.




It is better to strive for equitable society by removing income inequalities by making corporates accountable to stringent labour laws and social security measures and remove social inequalities by enforcing heavy taxation on ultra-rich people.


References :

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