"One-stop shop" for the TOTAL transformation of India

Modi’s false claims re: role of government: “Government has no business in business” – yet the man is selling liquor and cigarettes now

Thanks to Nilesh Kamani for linking to this video (watch from 2:10) https://www.youtube.com/watch?v=_15OCJ2kEPA

And yet we know that Modi is starting NEW duty free shops and selling liquor and cigarettes. Such is the man’s ability to lie.

He lied through his nose in the 2002 killings. He lied through his nose to get into power.

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Swarna Bharat Party will now launch a national movement since the PM is not interested in governance, says the party President, Sanjay Sonawani

Press release by SBP:

National Press Release – to be released across India [Word version]

27 September 2016 – for immediate release

Mr Sanjay Sonawani, President of Swarna Bharat Party, said that he wrote an Open Letter to Prime Minister Mr Modi on 26 August 2016 asking him to double funding for the police and ten times for the judiciary. SBP provided detailed reasons why this is necessary, as well as photographs of the deplorable conditions that our police and judicial systems face on the ground.

In its letter to PM, SBP also showed how these additional funds can be obtained, mainly by divesting public sector undertakings. SBP said that there is no reason for a government to operate businesses and run banks. But only recently we heard that ITDC has opened its 10th duty free shop. The Modi government is more interested in selling duty free liquor and cigarettes than in governing.

SBP had also asked the PM in its Open Letter to implement a range of essential reforms to ensure that India’s governance system and policies are consistent with liberty and world-best practice. That is the only way forward India to get out of its Third World corruption and poor performance. The results of India’s chronic misgovernance face us every day, at each step.

Essential governance reforms include state funding of elections on a per vote basis to allow honest people to contest elections, and elimination of the guarantee of tenure for senior bureaucrats. The government must be held to account for results. And we need to urgently strengthen India’s defence.

Mr Sonawani said that the party’s Open Letter was sent by courier to the PM. The letter gave the PM till 26 September 2016 to declare his agreement to implement all reforms listed in SBP’s manifesto.

The party keenly waited till yesterday but no response was received. In the letter we had written: “Should you choose not to implement these demands, we will infer that you have no intention to implement governance reforms and that you do not care about India’s development.”

It appears that the Modi government does not care about governance or development. With regret, the Party is now forced to launch a national movement for good governance from 2 October 2016. We will march at 2 pm from Raj Ghat to Delhi Police HQ. Well over a hundred people will participate. The Party has informed Delhi Police of this event and invites everyone to join. It also invites the media to cover this occasion.

Mr Sanjay Sonawani invited the people of India to demand these reforms from wherever they are located. There is no reason for government to run business. It should perform its core functions. And it should implement world-best reforms to India’s governance system, as listed in SBP’s manifesto.


Notes for Editors

SBP is India’s only liberal party, committed to defending liberty and promoting prosperity.


Sanjay Sonawani (Pune), National President, +91 9860991205

Alok Kumar (Ghaziabad), National Vice President and President UP State Unit, +91 9999755334


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Mises against anarcho-capitalism

For my record, that Mises was vigorously against Rothbardian anarchism.

  • “A government abdicates if it tolerates any non-governmental agency’s use of violence. If the government forsakes its monopoly of coercion and compulsion, anarchic conditions result.”
    -Ludwig von Mises, Planned Chaos
  • “Liberalism is not anarchism, nor has it anything whatsoever to do with anarchism. The liberal understands quite clearly that without resort to compulsion, the existence of society would be endangered and that behind the rules of conduct whose observance is necessary to assure peaceful human cooperation must stand the threat of force if the whole edifice of society is not to be continually at the mercy of any one of its members. One must be in a position to compel the person who will not respect the lives, health, personal freedom, or private property of others to acquiesce in the rules of life in society. This is the function that the liberal doctrine assigns to the state: the protection of property, liberty, and peace.”
    -Ludwig von Mises (Liberalism)

I’m informed that “Mises wrote against anarchy throughout his life. He thought Rothbard was wrong.”

Just a reminder of two of my notes on this subject:

Rothbard’s foundational error about classical liberalism and his mistaken belief in anarchy

The absurd dreams of libertarian anarchists


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The sugar industry in India – preliminary notes

SBP issued a press release on the sugarcane industry yesterday.

This has led to a question regarding the calculations in the media release.

“The market price of molasses is around Rs.7,000 per ton but the UP state government pays mills a no more than Rs.2000 per ton.” But the price you have quoted is the MSP, a price applicable only if the farmers fail to sell their produce in the running season and this is the amount government offers to them as a degree of relief. It is not true that the farmers are forced to sell at this price initially. Even when they fail to sell sugarcane in the running season, there is no force to sell it to the government. It is an offer, which they may take to reduce their losses or decline and suffer the full loss.

Besides, we would like you to furnish some links of credible reports that say that the Uttar Pradesh government is offering Rs 2,000 per tonne for molasses.

My initial response

This matter is rather complex as farmers receive a price for sugarcane, not for molasses. A key leader of SBP made calculations and worked out that the effective price being paid to farmers for the molasses component is well below Rs.2000 per ton.

The issues raised in our press release have been raised here:


“A sugar industry official said the compulsory sales to the liquor manufacturers would result in a distorted market, where price of molasses to liquor manufacturers is one-sixth or 16-17 per cent of open market price.”

and here: http://www.sugaronline.com/website_contents/view/1217071 “But with the state government favoring blatantly the liquor industry,”

The problem is that this is a highly detailed calculation, and all the facts are not available to the outsider (i.e. farmers). There are wheels within wheels in the sugar industry. It is hard to disentangle the mess.

All one can say is that there is no business for the government to be dabbling in administering prices, setting quotas, restricting trade, etc.



Rangarajan Report of 2010: Report of the Committee on the Regulation of Sugar Sector in India: The Way Forward

Parliamentary research blog’s report: http://www.prsindia.org/theprsblog/?tag=frp

Indian sugar policy: Government role in production expansion, and transition from importer to exporter  [this report suggests that farmers are being given higher prices than international prices, to ensure high supply of sugar in India.]

Question in Parliament: http://www.indiansugar.com/PDFS/FRP%20FOR%20SUGARCANE-LS-1754.pdf

Quora question: Why are Indian sugar mills running under a loss? If there is surplus production, why don’t they export it?

Various Problems of Sugar Industry in India

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Why India fails, repeatedly

  1. Ignorance
  2. Lack of attention to detail (corollary of ignorance)
  3. Arrogance (the flip side of ignorance)
  4. Unwillingness to learn (the corollary of arrogance)

No Indian has been able to explain to me simple things like: why are the streets of India so filthy, why is there no surety of power/ water supply, why are all the politicians corrupt (and many are murderers) – and so many (thousands) of things that happen in their daily life.

Yet they all have “solutions” (and are quite pompous about these “solutions”) without bothering to explain cogently even ONE thing that happens around them.

If they could see clearly, they would find the answer in one word: socialism.

But they are simply illiterate in the basic analysis of incentives.

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