Saturday, November 15, 2008

Dollar to Global. Why America is continuously at war since WW II




The current crisis in the finance sector emphasizes the theory of trade cycle. But is there anything more to it? Are there some other cycles as well? What about the technology evolution cycle ? There are phases when the collective grey matter on the earth suddenly seems to brighten up. Similarly, there are energy cycles as well. The social energy in whatever form also follows a cycle. Yes. Let us see the chronology of wars across the globe since the time we have the benefit of recorded history. Leaving aside the reason of these wars or the fate of the victor and the vanquished, just focus on the pattern. Wars invariable follow a period of seeming prosperity in any geography. Prosperity expands and tends to spill over geographical boundaries as well, although we see and understand that as a benefit of trade. Similarly the crisis and penury in geography also attempts to exhibit the same pattern, and collective psyche of people of a land tends to trade their misery with their prosperous neighbours. Here the relativity works best. This perhaps is the simplest definition of a war. I could call it a trade of miseries. So we had two prosperous entities who fought proxy wars through front end partners who had aspirations as an offer. Direct wars can happen only between the miserable and the mighty, each trying to secure their turf. Let us work it backwards. As per this site there are 42 conflicts globally that are current. These conflicts range from civil war to insurgency to uprisings all involving armed conflicts. But what is the root cause? It is economic disparity in two pieces of land or between two communities in the same land, which leads to conflicts. Now the issue to be deliberated would be whether there is any threshold or a trigger point which can be identified. Whereas aspirations may be fuelled on comparison, but the decision which would lead to loss of life itself may not be a blind slave to this instinct. Thus ordinary people would not go to war for the butter, but for bread. The desire to live is very strong, and this is the live force, in fact a force so strong that it leads to a decision of ending another life in the name of survival. Pride, ego, honour are all secondary to hunger. If this be the reason, why does America go to war ? It is directly involved in four of the 42 global armed conflicts at the moment. The reason is survival again. Does it really feel at risk with the Islamic world? Does it actually acknowledge Afghanistan as an adversary ? Are the Afghans fighting the Americans so that they (Afghans) can walk the streets of NY City ! No, its America's war, because their prosperity has pitted them in a cultural conflict with half the world. Global resources are consumed by Americans far in excess of what they actually possess. Wars are equalizers, and isolated attempts of groups of humans to redistribute the global assets. Anything that is limited in supply is an asset. This definition makes this earth an asset, because there is only one unit of this commodity. My fears are that just as the second world war had followed the great depression, the current scenario may also lead to the same. The trade cycle went on the upswing, as the war time manufacturing capacities were effectively commercialized. Since then, the manufacturing capacity has been distributed across the globe, and US faces a very real situation where it is likely to lose the position as a fulcrum. The slowdown is definitely expected to impact the lifestyle in USA, and this may mean vanishing investor incomes and jobs, and dwindling productivity. The bubble in capital market has burst, and the remainder may not be sufficient to maintain the equilibrium. The question is :First, Does America have any incentive to let the world be without any armed conflicts in a world where its arms exports provide the most stable investment in the current scenario. Second: Will there be any restraint on the US not to perpetrate more conflicts globally, to ensure its own economic survival. The cost that it occasionally pays in terms of lives of its men on the battlefront may seem too insignificant in the wake of insuring a continued prosperity !

Its time now for the $ to be called GLOBAL.

Its time now for an international government, something much more effective than the UN.

Geographical boundaries benefit only less than 100,000 parliamentarians or people comprising the political stakeholders. All others, including the defence forces and civil servants are after all workers, and would functions as well in an alternate setup. So is it feasible that 6.72 billion people be denied global citizenship, because some 100,000 people are trying to assume leadership, and would have us believe so?

Wednesday, May 7, 2008

Whose growth is it

India is definitely moving up to great times, but in this race is Bharat left some where in the oblivion. Even if realty sector is booming, salaries are shooting up and net worths are skyrocketing, are the fruits distributed well? Can we expect that all this prosperity will also lead to responsible governance? Visit any of the upcoming towns where realty is flirting with dizzying heights literally and metaphorically. Are the labourers paid anything quite in proportion to the rest of the salaried community? Why is it that even though great wealths are created by the private enterprize, it is still left for the Delhi Metro or the Oil PSUs to be the best and most concerned employer for the laborers and technicians ? Why is it that the construction magnates who create great value and employ thousands of semi skilled and unskilled laborers, still feel absolutely no need to provide the basic amenities like clean toilets and shelters for the workers ? Ask any of the early movers in Gurgaon or Noida about their nightmare of early mornings, where the entire surroundings become open public lavatories and the promise of clean air and environment is duly exposed. The private sector in this country needs to start conducting itself with due sense of responsibility. Humanity and human race in all forms must be respected by all. Delhi is upbeat about 2010. The roads, most visible of the city infrastructure are getting half of their due attention about two decades in arrears, duly supplemented with the thought process that gives the pride of place to the buffoons we call as leaders and policy makers. Some nitwit babus in their over enthusiasm feel no shame in exposing the royal shame that their common sense is. The new bus stands are a testimony to this legacy. Yes these stands look good. They shin bright at night. They also carry the signage which tells you the name of the bus stop. And of course there is bright signage which tells you what channel to watch, what scrips to invest in, what shoes to wear, which airlines to fly .....but ... is there something missing. Yes... it does not tell u anything about which buses ply on this route. Or what is the meaning of the numer 629, 534, 730 etc. There is all the information that one may not really need, but for a stranger on this bus stand there is no information regarding bus routes. Standing at a bus stop I do not know if I am at the right place. I still find the moogfali wala bhaiya ji of far greater use than the neon lit bright bus stops which attract more insects than passengers !!! Best of luck for 2010. Dignitaries, participants and visitors should undertake the adventure to check out the city of Djinns only at their own risk...

Thursday, May 1, 2008

IT procurement in Government

We have seen that most of the IT related procurement exercises in developing countries have been only moderately successful. This has been evident in the defence procurements as well. The level of sophistication of the equipment is directly proportional to the level of difficulty encountered in the procurement process. What is the reason for this ? Is it that the bureaucracy in developing countries is wary of engaging professional assistance ? Or is it the mere fact that technology overwhelms most of us, and decision makers are not necessarily theoretical economists, always capable of making rational choices? India has been a major case in point. Almost all deals for procurement of sophisticated defense machinery have had their rough patches. Telcos under government have been facing rough weather in this regard as well. So what is that makes IT procurement so very different from any other procurement