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India! I dare you to be rich

The nature, extent and magnitude of Hindu-Muslim riots in India and analysis of causes

Someone sent me information re: Hindu-Muslim riots. To keep track of such information, I’m creating this blog post as a placeholder. Please send me any relevant links/ sources that  you find.

My previous compilation

Further information received

Steven Wilkinson of Duke University, has authored a paper on Violence and Riots in India. [I found this on the internet]

Raw data has been published in the paper “Varshney-Wilkinson Dataset on Hindu-Muslim Violence in India, 1950-1995, Version 2.”

  • During NEHRU’s rule – 1950-1964, 263 riots occurred in 16 states .
  • During INDIRA GANDHI’s rule (1966-1977 and 1980-1984) 337 riots in 15 states have been recorded. (This is apart from the Khalistani violence).
  • During RAJIV GANDHI’s time 291 riots in 15 states have been documented incl. the Sikh massacres of 1984.

ADDENDUM

Communal Violence and the Denial of Justice

Violette Graff and Juliette Galonnier: Hindu-Muslim Communal Riots in India II (1986-2011)

Brass, P. R. 2005. The production of Hindu-Muslim violence in contemporary India, Univ of Washington Press

Rowena Robinson: Tremors of Violence: Muslim Survivors of Ethnic Strife in Western India

K S Subramanian: Political Violence and the Police in India

Subramanian, K. S. 2003. Socio-Political Violence and the Crisis of Governance in South Asia: A Preliminary Exploration ATWS Monograph, JMI.

Steven I. Wilkinson: Votes and Violence: Electoral Competition and Ethnic Riots in India

Martha C. Nussbaum: The Clash Within: Democracy, Religious Violence, and India’s Future

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ENGINEER, Asghar Ali, 1989b, Communal Frenzy at Indore, Economic and Political Weekly, November 4-11, 1989, XXIV, (44-45): 2467-2469

ENGINEER, Asghar Ali, 1989c, Anti-Rushdie Disturbances in Bombay, Economic and Political Weekly, March 11, 1989, XXIV, (10): 492-494

ENGINEER, Asghar Ali, 1989d, Communal Riots in Muzaffarnagar, Khatauli and Aligarh, Economic and Political Weekly, January 7, 1989, XXIV, (1): 22-24

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ENGINEER, Asghar Ali, 1988b, Gian Prakash Committee Report on Meerut Riots, Economic and Political Weekly, January 2-9, 1988, XXIII, (1-2): 30-33

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ENGINEER, Asghar Ali, 1987b, Meerut: the Nation’s Shame, Economic and Political Weekly, June 20, 1987, XXII, (25): 969-973

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ENGINEER, Asghar Ali, 1986, Gujarat Burns Again, Economic and Political Weekly, August 2, 1986, XXI, (31): 1343-1346

ENGINEER, Asghar Ali, 1985a, Communal Fire Engulfs Ahmedabad Once Again, Economic and Political Weekly, July 6, 1985, XX, (27): 1116-1120

ENGINEER, Asghar Ali, 1985b, Ahmedabad: From Caste to Communal Violence, Economic and Political Weekly, April 13, 1985, XX, (15): 628-630

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GHOSH, S.K., 1987, Communal Riots in India, Meet the Challenge Unitedly, New Delhi: Ashish Publishing House

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KAKAR, Sudhir, 1996, The Colors of Violence: Cultural Identities, Religion and Conflict, Chicago: University of Chicago Press

KHAN, Rafiq, MITTAL, Satyaprakash, 1984, The Hindu-Muslim Riot in Varanasi and the Role of the Police, in ENGINEER, Ashgar Ali (ed.), 1984, Communal Riots in Post-Independence India, Hyderabad: Sangam Books, pp 305-312

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MADON, D. P., 1970, Report of the Commission of Inquiry into the Communal Disturbances at Bhiwandi, Jalgaon and Mahad in May 1970.

Summary available at

http://www.indianmuslims.info/reports_about_indian_muslims/bhiwandi_riots_1970_judicial_report_on_rs s participation.html

Extracts available at http://www.sabrang.com/srikrish/annexure.htm

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NARAIN, Jitendra, 2006, Report of the Commission of Inquiry into the Communal Distrubances in and around Jamshedpur (Bihar) during April 1979, summary available at

http://www.indianmuslims.info/reports_about_indian_muslims/jamshedpur_riots_1979_judicial_report_on rss participation.html

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PUCL (People’s Union for Civil Liberties), 1978, Report to the People’s Union for Civil Liberties and Democratic Rights (Delhi State) on Aligarh Riot (October r, 1978) by Mukundan C. Menon and Sumanta Banerjee, October 27, 1978, New Delhi

REDDY, P. Jaganmohan, 1971, Report of the Commission of Inquiry into the Communal Disturbances at Ahmedabad and other places in Gujarat on and after 18th September 1969 Summary available at

http://www.indianmuslims.info/

SAMPRADAYIKTA VIRODHI COMMITTEE, 1978, Report of the Inquiry into the Circumstances Leading to Riots in Aligarh on 5th October 1978, October 23, 1978, New Delhi

SHRIKRISHNA, B. N., 1998, Report of the Commission of Inquiry into the Communal Disturbances in Mumbai during December 1992 and January 1993, available at http://www.sabrang.com/srikrish/sri%20main.htm

VARSHNEY, Ashutosh, WILKINSON, Steven, 2004, Varshney-Wilkinson dataset on Hindi-Muslim violence in India, 1950-1995, Version 2. [Computer file]. ICPSR04342-v1. Ann Arbor, MI: Inter-university Consortium for Political and Social Research [distributor], 2006-02-17. doi:10.3886/ICPSR04342. All the corresponding files, documents and press cuttings are available at the SciencesPo library (Fonds Violette Graff-Allier).

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A review of PV Indiresan’s book, Vision 2020. Definitely worth reading.

I’ve finished reading Prof. PV Indiresan’s 2003 book, Vision 2020 and commend it to everyone. I’d rate it 7 out of 10, i.e. definitely worth reading.  (Btw, you can read most of the book on google books.)

My earlier impression of PV Indiresan’s work has changed – for the better.

Overall I find that he has a broadly anti-socialist, anti-Keynesian perspective. That did not make him, however, into a classical liberal, for virtually at no place in his book does he base his ideas on liberty, and often settles into planning/ technocratic approaches. A lack of ideological foundation means that his ideas – often creative – are not always consistent, being also not tested on any fundamental policy framework. He was definitely one of the better policy thinkers India has produced, but I’d argue that his work left much to be desired. Had he incorporated elements of Chanakya’s Arthashatra and FA Hayek, he would have produced the best possible ideas.

This does not mean I have changed my mind about his proposal New Paradigm of Rural Development – to micro-manage rural development (refer to my blog post of 19 March 2014). While this paradigm doesn’t involve too much dabbling by the government, it cannot work without government subsidies. Having said that, there is much good in this proposal that needs to be used by urban/rural planners.

I’d argue that Vision 2020 displays a superior understanding of urbanisation than his (other) proposal on rural development. In the book, he notes that agriculture can’t drive India’s future prosperity, that cities need planning, and that capital-intensive heavy duty infrastructure is critical to kick-start growth. On these issues he makes a lot of sense.

As I showed earlier, he had arrived at state funding of elections as a way to reduce political corruption. And he was ambassador of CCS’s school choice program (although in Vision 2020 he has written almost nothing about the use of markets for procurement of government  services).

Overall, PV Indiresan was 80 per cent of the way towards classical liberalism. I wish he had spent time to form a better understanding of the price system, spontaneous order, self-regulation and competition. But he was an engineer (a brilliant one at that), and expecting engineers to understand economics is a bit of a stretch – the mindset needed for these two disciplines is entirely different. That said, he would definitely have supported the SKC reform agenda and distanced himself from most policies of AAP/Congress/BJP.

Most of his good ideas already form part of the SKC agenda. I’ll polish up a few areas (e.g. infrastructure) to reflect his thoughts.

With this, I’ve now published six blog posts on PV Indiresan, with the previous five of them being:

Below is my summary of his thoughts in Vision 2020. Do refer to the original work to understand better. My copy is fully ‘scratched’, as I have made notes all over the place, often in a moving bus.

OUTSTANDING

General theory:

  • Democracy is not an end in itself (p.106)
  • Income inequality is the natural state of society (p.8)

Economics concepts

  • Supply, demand, marginal effects
  • Price discrimination (p.31)
  • Anti-Keynes (p.94-94, 132-133)

Infrastructure:

  • Infrastructure charities – that build public infrastructure (p.62);
  • How capital intensity creates jobs (p.20-21);
  • capital intensive public goods are better (p.26);
  • against appropriate technology (p.89)
  • How big infrastructure is needed to kickstart an economy (p22);
  • infrastructure to eliminate poverty and create jobs (p.27, 33);
  • how housing and construction can play a big role (p.81)

Urbanisation:

  • opposition to agriculture-led growth (p.84)
  • Need to shift from agriculture to industry and services (p.85)
  • Need for urbanisation (p.42)
  • urban density saves petrol;
  • Need for intense urban planning: (107,108)
  • Planned – Mauritius example (p.45);
  • Housing sector– will create jobs (p.17)

Business friendly:

  • Reduce red tape (p.55) and become more business friendly (p.77);
  • simplification of property transactions (p.76);
  • For small sector: no reservations (p.60) but liberalise credit including micro-credit (p.81)

Economic freedom:

  • Globalisation has benefits (p.58)
  • Labour market flexibility (p.81,82)

Basic governance:

  • Distorted incentives of the bureaucracy (p.136-137, 140)
  • Need to focus on administrative reforms (p.86)
  • Judicial reform (p.87)
  • Need for local governments to raise own taxes (p.147)
  • Need to simplify property transactions (p.76)
  • Administration must take a whole of Government perspective (p.50, 113)

Anti welfarism

  • Why subsidy is bad (and why cost recovery is important) (p.27, 28, 30); against unemployment benefits (p.61)
  • Why government doling out schemes will destroy wealth (97)

NOT AS GOOD

Misunderstanding about the effects of competition (p.58)

Insufficient understanding of economic liberalisation (p.69-71)

PURA/ ring road model: Satellite cities should definitely be supported by infrastructure, though.

POOR

Limited vision for India’s ultimate economic status: Believes the maximum India can achieve is equal to the per capita income of the world average in 2002. (p.106)

Theory of the state entirely unrelated to freedom (intellectuals/ politicians/ planners/ administrators) (p.5)

Poor understanding of costs: states that the cost of water/ waste disposal/ cooking gas connectivity, etc. is 10 times cheaper in rural areas than in urban areas. It is quite the reverse.

Poor understanding of salary structure and incentives of bureaucrats (p.80, 148)

Considers Sweden the best socio-economic system (p.6)

Has a communist/ universal subsidy model for 100 sq m land for each family, school, dispensary (p.13) [This contradicts his anti-subsidy stance elsewhere]

Asks the state to direct credit into consumer goods (p.95)

Thinks that the Planning Commission’s plans mean something (they don’t ) (p.113)

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Why India must move from agriculture to manufacturing and services: Indiresan was very pro-business

This section from Vision 2020 (pages 84-86) was another excellent section (I have a few points which I’ll note separately, below). He notes that AGRICULTURE CANNOT BE THE SOLUTION FOR INDIA’S PROBLEMS.

 It is the opinion in the Planning Commission that the Incremental Capital-Output Ratio (ICOR) is much lower in agriculture than in other sectors of the economy. That means, that for a given investment, agriculture is the best bet for maximizing growth. That has reinforced the view that agriculture, and craft industries alone can maximize both growth and employment.

These arguments are plausible; yet, they raise some uncomfortable questions. One: will this emphasis on agriculture support rapid growth let alone the eight per cent growth sought for the next Plan? Two: considering that we are already sitting on top of a grain mountain, can the country absorb further increase in agricultural production? Three: will agricultural employment satisfy the aspirations of modern day youth who are relatively better educated, and are dreaming of white-collar jobs? Four: is it really impossible for industry and commerce to increase employment? Five: does the assumed scenario truly address the real weaknesses of the Indian economy?

As matters stand, existing farmers are able to produce enough food for themselves and for all others too. Yet, a number of non-farmers are starving because their earnings are too little to afford the price at which the surplus grain of the farmers is being sold. Farmers have no incentive to lower prices because the government buys their surplus at relatively high prices. [Sanjeev: He should have opposed this MSP system, but that’s a different matter]

If the suggested solution of the Planning Commission is accepted, non-farmers will produce even more food for themselves – and for others too.

It is not clear where these new entrants to agriculture will find the land to cultivate. If they do succeed, the market for the existing farmers will shrink. In that case, either the government will have to spend more on subsidy, or let the existing farmers become poorer.

Alternatively, the additional produce may be exported. Unfortunately, grain prices in the world market are low. Even if 10-20 million tons of grain are exported, the realization will be much less than what Indian software industry is generating. Hence, if globalization has resulted in jobless growth, the suggested solution is likely to generate growthless jobs. It will be redistributing poverty rather than creating prosperity.

The logical solution in this case is for non-farmers to raise their productivity in sectors other than agriculture, to earn enough to absorb the agricultural surplus that exists already. Implausible as it may appear, the solution to India’s unemployment conundrum is to create well-paid jobs in industry and services, not more ill-paid ones in farming and handicrafts. World over, prosperity has increased only when employment in agriculture shrinks, not when it increases.

Lack of capital is not the problem why the formal sector is not generating jobs. Banks are flush with funds with no takers. The problem lies with entrepreneurs who are virtually on strike. Those few who like to expand, often prefer to do so in China and elsewhere rather than in India. Like talented professionals, industrialists too are voting with their feet and moving out of India. That is the true cause of tardy economic growth in India.

The accompanying Table summarizes the reasons why Indian industrialists find costs in India so high that it is worth their while to move out of the country.

As the table shows, the issue is not that there is little scope for industrial (and commercial) expansion, but that the prevailing political and administrative environment obstructs such expansion.

Table: Excess Costs of Doing Business in India

Cost Factor Nature of the Problem Cause
Materials High prices Poor infrastructure, over-valued currency, labour costs
Labour Low productivity, militancy Low skills, restrictive labour laws
Interest costs High rates Over invoicing, large scale defaults, poor bankruptcy laws, judicial impedance to recovery of bad loans
Depreciation Technology obsolescence Low investment in R&D
Pre-sale taxes Complex, irrational Conservatism, vested interests and corruption among tax administrators
Post-sale taxes Complex, irrational
Services Unreliable, expensive Artificial shortages, uneconomical service charges
Transaction costs Time delays Complex regulations, corruption
Regulations Multiple agencies, Nitpicking culture, corruption complex, irrational
Overheads Little scope for executives Low self confidence of top managers to innovate

It is clear that Prof. Indiresan was pro-business and not a Luddite.

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PV Indiresan was firmly against Keynesian ‘pump-priming’

I’ve been reading a number of books simultaneously, including PV Indiresan’s Vision 2020. Indiresan, although not trained in economics, seems to have broadly understood a number of economic concepts. He does make a few errors here and there, but he is definitely not socialist, nor Keynesian. Not entirely classical liberal, his views are broadly consistent with classical liberalism.

In particular, he has some harsh words for Keynesians:

For four decades, the government went on a spree creating jobs whether they were needed or not. The prevailing view was that employing people was a good in itself – even if there was no work to do, or the work done was not commensurate with the wages paid.

Keynesians consider themselves expert in this area. Stung by the disastrous loss of competitiveness that resulted from their policies, they have been lying low for nearly ten years. Now, they are back at the centre-stage insisting that pumping money into the economy, and increasing fiscal deficit, is the only remedy for unemployment. Fiscal deficit puts all that money and patronage into the hands of politicians and officials. Neither of them is always wise or even honest.

Applied across the board, as Keynesians would do; pump-priming is like rain, it falls both where it is needed and where it is not, even where it may do much harm. So, the consequences of classical Keynesianism are problematic at best and disastrous at worst. [Vision 2020, p.93]

I’ll summarise his key points separately, but this section was good enough for me to scan, OCR and publish.

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Hansal Mehta finds government the biggest barrier to high quality film education in India

I don’t watch films (or too few  to count) so it was by accident I came across this youtube video.

But it is not the main topic of the video (the film Shahid) that I wish to comment on. Instead, I want to comment on a side question asked of Hansal Mehta. Watch this 1 minute snippet:

Hansal Mehta is right. If such an enterprise as FTII were fully privatised (like any other good education institution), India could produce some of the best film makers in the world.

But this will not happen till the Modi government continues. These BJP socialists have NO IDEA about good governance. They will continue to have bureaucrats run our educational institutions.

Sorry, Mr Mehta, if you wish to see change you’ll need to get involved in the Sone Ki Chidiya movement. Please review the agenda and let us work together for genuine reform in India’s miserable governance.

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Why is Ramdev still supporting super-corrupt BJP? चोर की दाड़ी में तिनका?

BJP has been offering crores of rupees in black money to AAP MLAs.

This is not news. Everyone knows BJP is floating in black money.

Ramdev used to jump about and shout from rooftops regarding the corruption and black money of Congress.

Why is he quiet about BJP’s black money? चोर की दाड़ी में तिनका.

Speak up, Ramdev. I suspect your EVERY ACTION now. It am almost certain that you are involved in black money laundering yourself. You have taken the country for a ride by pretending to be a reformer.

There is still time.

1) DISTANCE YOURSELF FROM THE BJP.

2) SPEAK THE TRUTH AT ALL TIMES.

3) DISCLOSE YOUR BLACK MONEY/ ILLEGAL ASSETS AND THOSE OF YOUR BROTHERS AND BROTHER-IN-LAW.

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