Christopher Sidor wrote: Frankly we had our wasted decade. Yes we became a 2 trillion USD economy. Yes Sensex came close to being a 1 trillion USD cap market, but that is all. We have regressed in most of the basic human development indexes. Our people eat less than what they used to do in 1960s and 1970s. We have a generation which has seen only falling value of rupee over 50% fall in a period of 5 years. Do I think I am better off than I was in 1990. Nah.
That’s a bit strong.
1991 Literacy rate 52%
2011 Literacy rate 73%
This business of our people eat less is also wrong.
The 3 states with lowest calorie intake are TN, GJ & MH. Calorie intake of somewhere around 1900 kcal per day while Bihar has a
robust intake of 2400 kcal per day. So are you telling me that Bihari’s are better off.
I was referring to the nutritional value. Now according to GoI for medium to heavy labour the food consumption ought to be 2700 calories or higher. That is not happening even after 8% of growth.
Theo_Fidel wrote:The percentiles also show that the greatest declines in calorie intake has come from the 30% richest of India. A decline from 3500 kcal per day to around 2800 kcal per IIRC. There is no shortage of food and desperate hunger as used to be quite common in rural areas in 1991 has largely disappeared.
The trend lines show that cereal consumption has come down while, fruits, pulses, milk, meat, etc are up strongly.
There is no shortage of food, but food has been priced out of the market. Not many people can afford a packet of Dahi every day. Not every household can have eggs or fruits. The question being raised is not about scarcity. It is about what people can afford. Another way of looking at Food Security Bill is the acknowledgement by GoI that the food grains currently in the market are so high priced that BPL and most of APL (i.e. non Lower/Middle/Upper Income Group) just cannot afford it.
Theo_Fidel wrote:The real mystery, if there is one, is to explain why well off folks in India are living on 2800 kcal per day while well off folks in USA live on 4000 kcal per day. And why a state with less than 2% hunger rate like TN also manages to do it on 1900 kcal per day.
It is not mystery, it is a fact driven by Government policies. A US diet is very heavy in colas and other fast foods. This adds up the calories. Whether those calories are actually beneficial is debatable.
Theo_Fidel wrote:BTW this is one reason I'm strongly attacking the FSB. Because the problems in India all have to do with non-food expenditures. If the government gave a cash voucher to every family to use for education or healthcare it would be a far better use of resources.
FSB is not the problem. The problem is the nutritional value of the food that Indians are having. That is pathetic. That is why we have swollen bellies in many of our rural population. And FSB is better than cash dole outs which will be worse. The problem with cash dole outs is that a person will misuse the money for alcohol or narcotics or gambling or any of any other vices that one can think about. It will do nothing to strike at the root cause. On the other hands giving out grains, which is essentially rotting away or is being fed to rats and other rodents, makes sure that we raise the health of our citizens. This is the reason why mid-day meal is better than any direct cash transfer program. Because mothers send their children to school once they know that they will be fed there. And once the child comes to school he gets to learn. Transfer cash to the same mother and see how so little of it goes towards food and education.
Theo_Fidel wrote:Also there has never been a generation that has seen a rising rupee. Back in 1991 some of us saw the rupee decline by 200% in 18 months!
My point exactly. What we have seen over the generations has lead to a generational habit of getting goods which retain value like Gold and Real Estate. It is not that buying Gold and Real Estate is the cause of our CAD rather it is the other way around. Fix the currency and see how much of gold people buy. But since we have seen over 60 years of falling rupee, we will need to see another 50 years of stable or rising rupee to reverse the trend.
Theo_Fidel wrote:There is a case to be made for why a new government can have better policies but AFAIK those policies have not been listed. Yes we are all disenchanted with the C party but the opposition has not shown any new ideas either. So far all we have seen is random attacks on the c-party and horrific infighting with major partners mindlessly ejected. What sort of coalition building is this.
Again beg to differ. The policies have been listed many a times in this forum and in other forums too. But this is a coalition of direct cash transfers to the partners and doing nothing. Everybody in India is comparing the decade long economic rule of UPA with the decade long rule of Modi. Everybody notices that Modi has not asked for any package for Gujarat. Yet Nitish Kumar has asked for a special package that too after continuous 8% growth. So it makes one wonder whether all the growth questionable or on paper.
Theo_Fidel wrote:BTW Wall Street journal is reporting that the end of the USA bond buying is what is destroying the value of the Rupee. For a long time folks here were making fun of the USA for its easy money policies, now that the USA is ending it, it is India that is being damaged. Talk about deliberate foot shooting.....
This is another evidence in the support of our my argument. We have become so much addicted to cheap foreign inflows that our entire well being is now in the hands of people in New York or London or Tokyo. That is the most sad. We have political independence. We have food independence. But what we lack is the financial independence. The Great saint had said, "Let a thousand strong winds blow through my house and I will not be swept off my feet." 60 years we have still not been able to get that thing done. A simple word by some central banker somewhere can cause our rupee to fall. Are we the masters of our own fate? No we are not? Have we benefited from it? A small minority may have, but the vast majority have not. We sought to unleash a tiger in 1990-1, what we have done is that we have made this tiger so weak internally that it cannot even walk.
Theo_Fidel wrote:Also while we are at it whyfor the attacks on NRI for investing in India. We are the only group investing in India no matter what. It is these sorts of rotten attitudes that drive CEO types away from investing in India as well. At least show some gratitude.
Gratitude is not shown for gross incompetence bordering on insanity. It is not shown for sitting hand over fists and doing nothing since Lehman Collapse, when it became clear that we had to reform and change path.
It is better that these COE go away and not invest in India. Because when they were coming in they were hiding all our flaws. I do not want COE who believe that they can buy Indian assets and not pay any Tax to GoI. Hell I want similar treatment. I do not want any COE to believe that they can utilitze tax advantage and mint money. These COE have come to India to take advantage of its market. If they find some other market somewhere better suited they are most welcome to leave.
They are beholden to us and not the other way round.
These are not harsh words. These is the country that we live in.