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Category: Current Affairs

What exactly is Modi saying regarding state funding of elections? He has not provided a detailed proposal.

Now that I understand what Modi has been saying re: state funding of elections, he is not saying much, really.

All he wants is a debate.

But what is HIS proposal?

Let me say this in brief:

a) State funding as proposed by Indrajit Gupta was a terrible idea.

b) State funding must be simple and clean: each valid vote must return Rs.20 (or so) to the candidate (not political party). Period. That’s we need. And how hard is that for people to understand?

I have detailed this at length in BFN and also in SBP’s manifesto.


Let me reproduce the section regarding electoral reforms:


While Equality (socialism) and corruption are lifelong buddies and room-mates, Freedom (capitalism) and corruption are arch enemies. A free India can’t condone even the tiniest bit of corruption. We must become the least corrupt country in the world if we want to be called free. The following four actions will help to eliminate political corruption and also dramatically improve India’s governance:

  • Raise the wages of MPs and MLAs at least by a factor of ten while simultaneously getting rid of all of their ‘perks’. Let us pay the Prime Minister of this great nation at least what a middle level business executive of a very large multi-national firm gets, say Rs. 1 crore per year, and MPs Rs.20-30 lakhs each. As it is unpopular for politicians to raise their own salaries, we can help them by setting up an independent commission that would determine their wages. There is also atendency among politicians to add to their perks if their wages are kept low by public pressure – this is a significant problem for India. In India some MPs also allegedly sell some of their perks, such as their free air tickets. That is surely criminal. Perks are also expensive to administer. Let us therefore get rid of all perks once salaries are raised, and only reimburse actual expenses incurred on the job, for instance, eligible travel expenses. Let openness and transparency on such basic matters prevail in India; a free society can’t expect anything less than that.
  • We must fund our elections differently – through state funding. The purpose of the wages of MPs or MLAs is not to cover the expenses incurred during elections, but to pay them competitively for their responsibilities. Even if wages are hiked, we will still need to find a way to make the electoral expenses manageable. We can do so by state funding of elections. A simple and effective method that will pay Rs 25 or thereabouts, at current values, for each valid vote cast in favour of a candidate is outlined in Box 3. A system similar to this operates successfully in Australia, where about $2.10 (about Rs 66) is paid at present by the government for each valid vote polled by a candidate.[i]
Box 3 
State Funding of Elections
Let us revert to Mr Harishchandra’s original calculations. A small payment made for each vote polled by a candidate radically alters the expected financial burdens on candidates. It makes it viable for a much larger number of people to participate. The field of candidates changes from less than 1 per cent of the eligible population at present to potentially the entire adult population. Here’s how:
Let a payment of Rs X be made per vote polled, with n = 6 and θ = 0.02, as before.[ii] Mr Harishchandra expects 10 lakh voters to cast their vote at the election. His expected PVreturn now becomes:
With a government payment (X) of only Rs.8.39 per vote cast in his favour, Mr Harishchandra can expect to break even after spending Rs 20 lakhs of his own money on the election. This still leaves him with no income after repaying his loan. A payment of around Rs 25 per vote will make it practicable for Mr Harishchandra to contest the election, even with six serious candidates flanked against him. He is empowered by this method to take a calculated risk. The electoral fray now becomes a genuinecontest, not suicide.
Mr Harishchandra may, of course, still hesitate, since corrupt candidates will continue to spend huge amounts of black money without any accountability and threaten honest people should they attempt to contest. With strong auditing systems, anyone found using black money will be thrown behind bars. Further, over time, the new incentives created by state funding will allow many more honest and competent candidates to contest. There will finally come a turning point when morally challenged candidates will be shut out completely by the public which will only choose to vote for good candidates.
  • Third, we need to abolish election expense limits while simultaneously building extremely strong audit systems for monitoring the contributions received and expenditures made during elections.
  • Finally, a wider set of reforms of the electoral system will be needed, such as making public the property returns of our candidatesin the interest of greater transparency. These and other such reforms are touched upon in Chapter 6.


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The poor are actually expecting lakhs of rupees to be deposited into their accounts! By February Modi will be in serio

Here’s a report about why the poor are still supporting Modi:

“Madam,” he began, “I feel that in a few days, Rs 2 lakh will be credited to my account. It will be given by the government. When there is so much black money returning to them, where do you think all that money would go? Modi is bound to give it to people like us. He is going to be the next Jayalalithaa. What Amma did for her people, Modi will do for us.”

My prediction on this is clear: Three months from now, India’s fever will dissipate and angst will rise. The people have been badly fooled.

Modi just can’t meet the expectations he has created. The policy continues to harm the economy in a big way. By February (say, mid-February), Modi will be facing a severe backlash.

“If the elections have to be held before February 18, the Election Commission has to announce the dates of polling in the next few days.” (Source)

I believe that if Modi can manage to get the elections completed before 18 February 2017, he might still benefit from the tail end of a dissipating wave of enthusiasm about demonetisation.

But if elections are held after end-February, BJP will face increasing pressure, and if elections are held in late March, I believe BJP would well be wiped out in UP.

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A socialist system MUST NECESSARILY have an abundance of counterfeit notes

Received on Whatsapp:

Javed Khanani of Pakistan’s biggest money changers committed suicide on Sunday. He was famous for helping change money for Dawood Ibrahim and Lashkar and Haqqani organizations.
His company had already pumped into India Rs. 2 lakh Crores fake money, in the last 10 years and currently had Rs. 40,000 crores of fake Indian currency notes of higher value.
The positive effects of Demonetization by PM Modi.
Our Indian media won’t print this. This is all on Google.
You may google the name of this man and read.


Once you entirely privatise banking (including note issue) – this needs to be done in carefully considered stages – the banks will themselves work out superior ways to defeat counterfeiting, since any bank that doesn’t know how to stop it will be eliminated by market forces.

Currently we depend on ignorant, tenured duffers who have absolutely no knowledge or incentive – to deal with counterfeiting.

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Suicide of a farmer who could not draw money for his daughter’s wedding

Sharing from Whatsapp:

This is just one more of the many people affected by Modi’s ill thought out demonetisation.

I hope the people ask questions. This is just not OK – to stop people from withdrawing their own money from the bank. This is third world dictatorship. Fascism and lunacy.


Modi has even more blood on his hands.

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No, Prof. James Tooley, DON’T pay the bribe demanded by criminal Indians. And PLEASE stay away from my shameful “motherland”.

I’m so deeply sorry and ashamed about what India has done to Prof. James Tooley. If anything could be done to reverse the torture and agony imposed on him by my CRIMINAL “motherland”, I’d do it.

It all starts with a Deputy Superintendent of Police who wants to get back some of the bribe she had to pay to get her own promotion. She is like a monstrous black spider who sits and spins a careful web to trap Tooley. After months of pre-planning she has him, and she latches on to ALL possible powers (which are ABSOLUTE) in the Indian system to first put him in jail and then harass the hell out of him from 2 March 2014 to 23 June 2014 – nearly four months.

How he escapes her clutches – but she remains as brazenly predatory as ever, fully protected by the criminal governance system of India – is a story that will remain etched in the minds of all readers of Imprisoned in India, a book I received yesterday evening and have finished by now.

Trumped up case, harrowing Kafkaesque nightmare. Even Kafka would not be able to imagine such a nightmare.

Fortunately, at the end, Tooley was able to escape India.

The demand for bribe still remains – and from MODI’S HEADQUARTER IN THE CENTRAL SECRETARIAT. The crooks that govern India will not close the trumped up case against him till they are bribed Rs.8 lakhs.



The book comes close in some ways to Rana Ayyub’s Gujarat Files, both being first hand real life accounts of India’s total corruption and criminality. (Looks like I didn’t get time to write about her book in detail on my blog – but Ayyub’s is a book I STRONGLY recommend everyone read – it gets very close to the truth about Modi – who is a mega criminal – as I’ve explained at length on this blog.)

I won’t go into details about Tooley’s book – it should be personally read by everyone for only then can you understand the true horror and sense of helplessness of those who are trapped by the criminals who rule India.

The book adds nothing new to my knowledge of India. The problems that James Tooley has identified which have led to the creation of the private school system in India – are exactly the SAME problems that he directly faced in 2014.

Tooley makes an attempt to understand the causes of this extreme rotten state of affairs. Unfortunately he only skims the surface and misses the key incentives which cause corruption in India. No, it is not about the regulatory regime alone. Yes, that creates the opportunity, but it is the incentive for corruption that is created by the system that is the cause.

Hint: Mrs. Mantra the head spider of this story paid a bribe to get her promotion. She also told you everyone from top to bottom pays a bribe in the police to get a promotion.

Why do they do that? That’s not a regulation issue, is it? So you need to ask more questions.

I have detailed all the reasons in BFN.

Btw, you know Gurcharan Das – he recommended that all Indians read BFN.

Unfortunately, Gurcharan Das has a VERY SUPERFICIAL understanding of India’s governance system. He has not understood its BASICS, and seems to be immune to new learning (at least from my very recent email experience with him – I showed him why his opposition to state funding of elections is so very wrong, but never heard back from him). He not only read BFN but I’ve explained things to him at great length on his visit to Melbourne and on numerous occasions when I’ve met him in Delhi. Also, he attended the governance reforms conference I had organised in IIPA Delhi (extract of my talk here).

I know you care a lot about India. I hope that your good will for India continues despite your horrible experience.

I would urge you to carefully (and I mean carefully) read BFN, particularly chapters 4, 5 and 6. These might be boring, but they get to the bottom of the problems of institutional design in India, and provide a detailed pathway to get out of this mess.

If people like you can understand this, Prof. Tooley, you can help spread the message more widely – since the Western press is EVEN MORE IGNORANT than Gurcharan Das about the causes of India’s huge corruption problem.

And do read SBP’s manifesto – it contains a complete privatisation solution for schools (among a vast number of other reforms).

Swarna Bharat Party is India’s ONLY hope. There is ABSOLUTELY NO OTHER CHOICE if India is to be transformed from a goonda state, a goonda republic, to a civilised land.

You can help by understanding things – unlike the vast millions of ignorant “intellectuals” across the world (including in India).

And DON’T go back to India till Swarna Bharat Party has come to power and fixed things (it will take three years of being in absolute power to change things – things are so horrendously bad).


Imprisoned India

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