Delhi can never be improved — until the rest of India improves!

As a general rule, capital cities are economically unproductive places. They neither grow food nor create industry. What they produce, or are supposed to produce, are public discussion, debate, decisions, as well as data and information for governance of the country as a whole.  People who come to capital cities — whether politicians or foreign diplomats or businessmen or students or even bureaucrats and journalists — should come there only for  temporary purposes, and then, once their work or business is done,  leave for their own “native places”… 

Of course only one city is a capital city.  Other cities and towns develop naturally in response to economies of scale in commerce and industry. My second piece of academic research at Cambridge back in 1976-77, which I talked about at the Delhi School of Economics in 1977-78 as a  Visiting Assistant Professor, had to do with India and other developing countries markedly being “Dual Economies”, where city and countryside, towns and metros and hinterland, are linked continuously by that wonderful two-way mass movement known as internal migration….

There is obviously seasonal migration of agricultural workers in search of urban employment during the time a crop is growing in the ground, returning home for the harvest and other festivals.  Beyond such seasonal flows, we may expect  rural-urban migration to continue depending on individual family calculations of expected employment, income, benefits etc, until as it were, the last person who has been thinking about migrating from village to town or from town to city decides not to move but to remain where he/she is.  Families typically maximise their well-being by having some members here, other members there or there etc, meeting up again during seasonal festivals when they can.  Besides, with modern commuter railways, large numbers of day-workers and vendors travel in and out of cities from the towns and villages every day.

The academic literature is vast and excellent, starting with Dale Jorgensen “The development of a dual economy”, 1961 EJ, Harris-Todaro, 1970, AER, and easily available, Jerome Rothenberg’s 1975 MIT discussion paper “On the economics of internal migration” http://dspace.mit.edu/bitstream/handle/1721.1/63948/onmicroeconomics00roth.pdf?sequence=1… See too e.g. from 2010 http://www.csae.ox.ac.uk/conferences/2010-edia/papers/275-eberhardt.pdf

In case of Delhi, despite its lack of water and its inhospitable climatic conditions on the edge of the Rajasthan desert, the British stamped it to become their Imperial child in India for ever more…  Yet even the British routinely fled to Simla or England every summer — as the current Delhi elite flees abroad to their exported children in America, Europe, Australia etc…  

Since British times, Delhi has been pampered with India’s public resources.  Not making its own food or clothing, it must import everything from the rest of India. After 1947,  millions of Hindu & Sikh refugees from the new Pakistan set up shop… then came migrants from all over, Bengal, the South, North East, UP, Bihar, Haryana, Rajasthan, Punjab, Kashmir — everywhere.  Now Delhi’s problems can never be solved until the endless migration slows down. Delhi is India’s capital and the more it is pampered, the better it seems to become and hence the more attractive it seems to India’s many millions of free people.  It is not hard to see that Delhi can never do enough for its residents because, since, qua capital city, it does not grow food or create industry (and is supposed to produce only public debate, decisions etc as a service industry), whatever it spends on public services comes from India’s exchequer, which in turn creates incentives for mass migration to continue from everywhere with no equilibrium being ever reached. 

The fascist solution that was, as I recall, suggested momentarily by a former Congress CM of Delhi, would be to forcibly prevent people from coming in from the outside.   Apparently the PRC as a totalitarian regime has some kind of system of internal passports which restricts citizens from travelling into metros on their own free will.  That cannot work in free India, where the Constitution would forbit forbid it. Hence the correct long-term way to help Delhi solve its problems probably involves trying to improve the rest of the country!  It is something for the AAP Government to think about when it talks to Narendra Modi: seek to help the aam admi *outside* Delhi if you want to really help the aam admi inside Delhi!  In the meantime, try to improve efficiency in the local public goods the local government is supposed to produce, and do not ask for more resources from India.

This has been a 15 minute analysis…More to come…   

(1) My 13 Sep 2019 Advice to PM Modi’s Adviser: Let PM address each State Legislature, get all India Govt Accounting & Public Decision Making to have integrity (2) 16 May 2014 Advice from Rajiv Gandhi’s Adviser to Narendra Modi: Do not populate the “Planning Commission” with worthies, scrap it, integrate its assets with the Treasury. And get the nationalised banks & RBI out of the Treasury. Tell them to read my 3 Dec 2012 Delhi lecture with care. Clean Government Accounting & Audit is the Key to Clean Public Finances & a Proper Indian Currency for the First Time Ever

13 September 2019

My 13 Sep 2019 Advice to PM Modi’s Adviser: Let PM address each State Legislature, get all India Govt Accounting & Public Decision-Making to have integrity 

I recently had a nice chat by email with one of Mr Modi’s economic advisers who knew me from years past. No I do not mean Bibek Debroy who was my stable-mate under Hahn at Cambridge in 1976. This adviser knew me as a colleague briefly in Washington during my American years 1980:1996.
My advice has been as follows:

In 2001 2000 I gave a talk at the RBI on invitation of Bimal Jalan and YV Reddy on the importance of maximum transparency in India’s Union and State Budgets. A Premchand’s *Effective Government Accounting* is really the best book the IMF ever produced, and my aim has been to see it applied to all public budgeting in India, especially in the information age… so any failed BCom or village accountant besides our 4125+ State legislators and all Union legislators and GoI officials can have at hand on demand for free all information about public resources, activities, expenditures, financing thereof etc. Mr Premchand and I met in his offices about 1998 when I last visited America and he thought my work was “light years ahead” of where the Government would reach.

The future PM Narendra Modi came from India to DC in October 1984 where I had been asked by Shekhar Tiwari whom you may know to give a Deendayal lecture, which I did. I recall Modiji well from that time. We have not met since. I should like him to be writing to each State Legislature Speaker seeking to address each State Assembly if they wish to extend an invitation, one by one. The aim of his addressing each State Assembly one by one that wishes to hear him (all will) would be to establish a Union-State link of fiscal cooperation, getting all State Government accounting cleaned up to the Premchand standard, so everyone in the country knows easily or can find out easily what is the state of finance in each State (as well as the Union of course).
It would take a few months plus two dozen rooms and a team of about 40 people to modernize all India Government accounts to the best world standards or even surpass them.
Obviously Planning had to go and I said so publicly in May 2014 as soon as Modiji was elected. At the same time, I said Finance had to be bifurcated, creating a new Ministry of Money and Banking where RBI and all PSU banks could be hived off. Then Finance would be left with doing Budgets, both Union and helping with States, all year round, getting them to the Premchand standard which is, basically, the world standard. Now I see “Corporate Affairs” has been a systemic problem too, because it allows Big Business to have too easy access to the Minister and his/her agenda and the latter never even gets to start normal public finance. Finance without Money and Banking and without Corporate Affairs can and should be handling all Budgets, year round, no lobbying.
You can see in this thread https://twitter.com/subyroy/status/1119845358572646400?s=20 up and down what happens as a prototype if the Premchand template gets applied in India.
In the meantime, a monetary disaster is unfolding on the RBI “surplus” issue… there is no surplus… it is a mirage… #RBIMirage. You may see it herein:
https://independentindian.com/2019/08/04/critique-of-monetary-ideas-of-manmohan-modi-the-roy-model-explaining-to-bimal-jalan-nirmala-sitharaman-rbi-etc-what-it-is-they-are-doing-draft-4-august-2019/
I had denounced in 2007 what Manmohan, Montek, Chidambaram had tried which was very similar, and they stopped. Now Modiji, the FM, Bimal Jalan et al have followed suit, even worse. Do tell them.
I completely agree the West, the Russians, etc each have their own agenda (and local agents in Delhi).
The IT revolution has reached everyone in India, working classes especially. Yet worldwide and with us especially public finance and public decision making remain untouched and backward.
It would take 6 months and a small team to apply Premchand to each State’s finances and the Union too. That is not about markets but about govt activities (in the public finance sense) and expenditures, hence political discussion about priorities. All State legislators plus aam janta should become empowered with public finance data. All India is in the States. Hence I would like to see PM address each State legislature one by one… build the fiscal cooperation framework as described. More later…
The root problem is something I started working on in 1993… Hubert Neiss at the IMF asked me “Do you understand the States’ budgets?” because nobody at the Fund or Bank did! I fibbed and said yes, knowing I knew more than they did. 🙂 But seriously

India’s States, the 18 larger of which are as populous as countries,

https://twitter.com/subyroy/status/1029412133665169409?s=20

have no control over direct or indirect taxes… hence there is no incentive to either limit expenditure or control incurrence of public debt…
https://twitter.com/subyroy/status/1076703533137711104?s=20
Where does all that public debt go? Into banks’ asset sides! Ie all the bad spending decisions of both GoI and States end up as bank assets! So the banks keep sinking!
Where and how PM and this govt must act is to make it the next step that Sardar Patel would have demanded: namely, Sardar gave us the federal democratic set up, he *created* the States, 18 of which are as big as countries (see Table)… Now Sardar would have demanded proper budgeting and spending… *not* garbage “austerity”… but decisions under control and public discussion… civil strife itself will reduce eg in NE… !
Everyone needs to carry forward to the next stage #SardarVallabhaiPatel #StatueOfUnity nation-building: modernization of all gov’t accounts & audit. Everyone in India can & shd know how public resources are being spent & how raised.. exactly.. 
https://twitter.com/subyroy/status/1130661889921433600?s=20
My idea has been #twodozenrooms… in Delhi… joint GoI and State teams… one room each for the 18 larger States https://twitter.com/subyroy/status/1029412133665169409 maybe two for UP plus J&K Goa Him Uttarakhand, 7 remaining NE Sisters.. Combined Union & State Finance teams then get all their budgets exactly right.. inc military & railways
getting all govt accounting to the best available world standards… Union, all States, all PSUs, military, railways, everyone
https://twitter.com/subyroy/status/1135197723156656128?s=20
a clear head, CAG data, Premchand’s book, 40 desktops and Excel… will take two months 24/7 work… 40 people in each of three shifts…
0700:1500
1500:2300
2300:0700 (graveyard)…

the data are all there with CAG… every activity, every expenditure… every anomaly… gets revealed… who is supposed to discuss spending priorities then? aam janta of course through their 4125+ State level + 800 Union legislators… let there be proper discussion in Assemblies… the State legislatures are dysfunctional, so is Parliament almost! Not because they want to be but because they are uninformed about problems and data!
So a massive change in our public discourse if aam janta and any legislator can access and discuss top quality public finance data… let them decide and talk about what priorities should be… the mind focuses then on **numbers**… which are hard data… It will be top of the world incidentally… no large country has done this, certainly not the USA etc… corruption also crashes as everyone can see everything…
PM starts the process by writing to the State Speakers… yes seeking an invitation… to address State legislators… **nothing partisan** no political meetings…. just PM and State as Constitutional entities… each State taken seriously one by one… Not three four the same day as he does with tours to NE. The process can take a year or more. The Speakers respond with an invitation or not… a scheduling is done… one by one… no political party favouritism… he speaks addressing serious problems… about concrete decision making and processes… no rhetoric is needed… He gives them a template of their Budget/accounts in the best possible world format… they have to then use all that data, decide what they want to do, how much help do they want in making better decisions… Ie it is a change in process….
As for the private sector, first thing is to get “Corporate Affairs” out of the Finance Ministry! That has become the vehicle of entrenched lobbying! It explains Chidambaram and Jaitley and all of them! Yes I have blasted Big Business for (a) their frauds; (b) their attempts to push risk onto the Government whenever possible… there has been systematic elite capital flight and international arbitrage allowed by both Manmohan and the present Govt!
The Government says to the private sector: we are cleaning up all our accounts, Union States Military Railways etc… all… you had better do the same and fast…!

see too https://twitter.com/subyroy/status/1197137821523480576?s=20

16 May 2014

Mr Modi’s victory is more amazing and bigger than Reagan’s in 1980 or 1984, or Thatcher’s in 1979 or 1984…One hopes one does not have to make comparisons with any earlier times… The interviews he gave in recent days were excellent in their sobriety, quite unlike his sneering rabble-rousing mass speeches… I have said I do not doubt his commitment to India’s national interest, and I add I do not doubt his managerial competence. What does concern me is the vacuum of commonsense as well as expert reasoning around him although that around Sonia-Manmohan was as bad as well as being more pretentious. If Mr Modi can do anything like what I said in Delhi on 3 December 2012, which Manmohan was too incompetent and bureaucratic to even try, he has my applause. The first task is to ****not**** fill up the so-called Planning Commission with BJP worthies and cronies, and instead ***to declare he is closing it down and integrating its assets with the Finance Ministry***… The second is to remove control of the banks and the RBI from the Finance Ministry and create a different agency or department or even Ministry for Money & Banking. Finance (with Planning under it) does the fiscal budgets and government accounting, for Union and States. Money & Banking seeks to bring some slight semblance of integrity to the currency for the first time ever, both at home and abroad. Don’t ask Montek Ahluwalia, don’t ask Rangarajan, for heavens’ sake don’t ask Manmohan Singh or even his young man Raghuram Rajan… Just do it…

18 May 2014
Mr Modi has a unique chance to change the face of Indian governance for the better — and the chance is now, **before** he announces a Cabinet. Essentially, he is beholden to no one in making his choices, he can bring in the maximum amount of commonsense and expert reasoning right at the start.

My first recommendation has been to *scrap the so-called Planning Commission* rather than populate it with BJP cronies and worthies where it was populated by Congress worthies and cronies before. If you start populating it with your cronies then you have lost the plot immediately, as you are needlessly creating vested interests once more, impossible to get rid of later. Vajpayee-Advani lacked the guts and vision to do this. Modi can do it easily. Montek Ahluwalia and Manmohan Singh got the so-called Deputy Chairman to have a higher rank in the Order of Precedence than elected Chief Ministers of States! Ahluwalia attended Union Cabinet meetings and “GOM” meetings as a member without being elected to anything at all. The Planning Commission’s physical assets should be merged under the Finance Ministry immediately with a one-line Executive Order. At the same time, the RBI and the nationalised banks should be removed from the Finance Ministry’s control completely, if necessary into a new Ministry of Money & Banking.

Finance (& Accounts and Planning) are then tasked to get the budgets right, both Union *and* States — *and including the military and the railways*! That is all they do, that should be their full-time year long occupation, nothing more, not listening to or yielding to lobby groups, not allowing anyone to get even faintly close to them, just getting all the Budgets right. Money & Banking would run the nationalised banks on commercial lines (and that means being ready to battle their fat cat unions), plus there is the RBI with its usual banking supervisory and money creation and balance of payments management roles.

Secondly, change the name of the Defence Ministry to the War Ministry or Forces Ministry, Raksha Mantralaya to Yudh Mantralaya or Fauj Mantralaya. India has never fought an aggressive war and is not going to do so now. Every war it has fought has been defensive, so calling it the Defence Ministry is superfluous and even perverse. Calling it the War Ministry tells it what to do, namely, win any war that is thrust on you, any which way you can and at least cost all around. Simple as that. Why it is perverse to talk of a Defence Ministry is because of its fiscal implications. Fat cat peacetime generals, air marshalls and admirals are prevailed upon by foreign weapons’ salesmen acting through ex-servicemen Noida brokers to waste public moneys endlessly on innumerable things which are utterly unrelated to war-fighting capabilities. And there can be no fiscal responsibility ever in India until the military budgets are brought under control. I have called the military budget the Black Hole of Indian public finance, no one knows what goes in or what comes out. And the preparedness for war itself is unknown as well — as the Mumbai massacres showed. Mr Modi and his putative War Minister should simply get the generals, air marshalls and admirals to tell them what plans they have to win different wars thrust upon them in different scenarios; what are their strategies to win those wars, and what resources do they need for those strategies to prevail; that is how you figure out the military budget. All the rest is fat, which only causes corruption and inflation too.

Thirdly, design a better cabinet on the lines, for example, I would have given to Rajiv Gandhi if he had not been assassinated. Manmohan Singh had 79 Ministers! You only need a dozen senior ones and a dozen junior ones, really…

Don’t set up a committee of worthies to examine all this… Just do it… I will applaud and so will everyone else…

See especially this…

3dec

 

My Recent Works, Interviews etc on India’s Money, Public Finance, Banking, Trade, BoP, Land, etc (an incomplete list)

255360_10150856082957285_243609311_n185918_10150095999572285_91626_n

My “Critique of Monetary Ideas of Manmohan & Modi: the Roy Model explaining to Bimal Jalan, Nirmala Sitharaman, RBI etc what it is they are doing” of 2019 is here.

 

 

My critical assessment dated 23 August 2013 of Professors Jagdish Bhagwati & Amartya Sen and Dr Manmohan Singh is here

 

 

My critique of PM Modi’s 8 November 2016 statement began on Twitter immediately, and is  summarized here “Modi & Monetary Theory: Economic Consequences of the Prime Minister of India”

 3dec

My critical assessment dated 19 August 2013 of Professor Raghuram Rajan is here and here.

My 3 Dec 2012 Delhi talk on India’s Money is now available at You-Tube in an audio version here

My July 2012 article “India’s Money” in the Caymans Financial Review is here and here https://independentindian.com/2012/07/21/my-article-indias-money-in-the-cayman-financial-review-july-2012/

My 5 December 2012 interview by Mr Paranjoy Guha Thakurta, on Lok Sabha TV, the channel of India’s Lower House of Parliament, broadcast for the first time on 9 December 2012 on Lok Sabha TV, is here and here  in two parts.

My interview by GDI Impuls banking quarterly of  Zürich  published on 6 Dec 2012 is here.

My interview by Ragini Bhuyan of Delhi’s Sunday Guardian published on 16 Dec 2012  is here.

 “Monetary Integrity and the Rupee” (2008)

https://independentindian.com/2008/09/28/monetary-integrity-and-the-rupee/

  “India’s Macroeconomics” (2007)

“Fiscal Instability” (2007)

 “Fallacious Finance” (2007)

https://independentindian.com/2007/03/05/fallacious-finance-the-congress-bjp-cpi-m-et-al-may-be-leading-india-to-hyperinflation/

 “Growth and Government Delusion” (2008)

https://independentindian.com/2008/02/22/growth-government-delusion/

 “Distribution of Govt of India Expenditure (Net of Operational Income) 1995”
https://independentindian.com/2008/07/27/distribution-of-govt-of-india-expenditure-net-of-operational-income-1995/

“India in World Trade & Payments” (2007)

https://independentindian.com/2007/02/12/india-in-world-trade-payments/

“Path of the Indian Rupee 1947-1993″ (1993)

https://independentindian.com/1993/06/01/path-of-the-indian-rupee-1947-1993/

“Our Policy Process” (2007)

https://independentindian.com/2007/02/20/our-policy-process-self-styled-planners-have-controlled-indias-paper-money-for-decades/

“Indian Money and Credit” (2006)

https://independentindian.com/2006/08/06/indian-money-and-credit/

“Indian Money and Banking” (2006)

https://independentindian.com/2006/04/23/indian-money-and-banking/

“Indian Inflation” (2008)

https://independentindian.com/2008/04/16/indian-inflation-upside-down-economics-from-new-delhis-establishment/

 How the Liabilities/Assets Ratio of Indian Banks Changed from 84% in 1970 to 108% in 1998 https://independentindian.com/2008/10/20/how-the-liabilitiesassets-ratio-of-indian-banks-changed-from-84-in-1970-to-108-in-1998/

indiasbanks1

“Growth of Real Income, Money & Prices in India 1869-2004” (2005)

https://independentindian.com/2008/07/28/growth-of-real-income-money-prices-in-india-1869-2004/

“How to Budget” (2008)

https://independentindian.com/2008/02/26/how-to-budget-thrift-not-theft-should-guide-our-public-finances/

“Waffle but No Models of Monetary Policy: The RBI and Financial Repression (2005)”

https://independentindian.com/2005/10/27/waffle-but-no-models-of-monetary-policy-the-rbi-and-financial-repression/

“The Dream Team: A Critique” (2006)

https://independentindian.com/2006/01/08/the-dream-team-a-critique/

 

“Against Quackery” (2007)

https://independentindian.com/2007/09/24/against-quackery/

“Mistaken Macroeconomics” (2009)

https://independentindian.com/2009/06/12/mistaken-macroeconomics-an-open-letter-to-prime-minister-dr-manmohan-singh/

Towards a Highly Transparent Fiscal & Monetary Framework for India’s Union & State Governments (RBI lecture 29 April 2000)

https://independentindian.com/2000/04/29/towards-a-highly-transparent-fiscal-monetary-framework-for-india%E2%80%99s-union-state-governments/

“The Indian Revolution (2008)”

https://independentindian.com/2008/12/08/the-indian-revolution/

Can India Become an Economic Superpower or Will There Be a Monetary Meltdown? (2005)

https://independentindian.com/2005/05/05/can-india-become-an-economic-superpower-or-will-there-be-a-monetary-meltdown-2005/

Memo to Kaushik Basu, 2010

Land, Liberty, & Value, 2006

https://independentindian.com/2006/12/31/land-liberty-value/

On Land-Grabbing, 2007

https://independentindian.com/2007/01/14/on-land-grabbing/

No Marxist MBAs? An amicus curiae brief for the Honourable High Court

https://independentindian.com/2007/08/29/no-marxist-mbasan-amicus-curae-brief-for-the-honourable-high-court/

Coverage in The *Asian Age*/*Deccan Herald* of 4 Dec 2012.

IICtophalf IICtalkbottom,half

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sundayguardiantp sgmiddle sgmid2 sgmid3 sgmid4 sgmid5 3Dec

Posted in Academic research, Amartya Sen, Arvind Panagariya, Bhagwati-Sen spat, Britain in India, China's macroeconomics, China's savings rate, Economic Policy, Economic quackery, Economic Theory, Economic Theory of Growth, Economic Theory of Interest, Economic Theory of Value, Economics of exchange controls, Economics of Public Finance, GDI Impuls Zurich, Government accounting, Government Budget Constraint, Government of India, India's Big Business, India's credit markets, India's Government economists, India's 1991 Economic Reform, India's balance of payments, India's Banking, India's Budget, India's Capital Markets, India's corporate governance, India's corruption, India's currency history, India's Economic History, India's Economy, India's Exports, India's Foreign Exchange Reserves, India's Foreign Trade, India's Government Budget Constraint, India's Government Expenditure, India's Macroeconomics, India's Military Defence, India's Monetary & Fiscal Policy, India's Money, India's nomenclatura, India's political lobbyists, India's Politics, India's pork-barrel politics, India's poverty, India's Public Finance, India's Reserve Bank, India's State Finances, Inflation, Institute of Economic Affairs, International economics, Jagdish Bhagwati, Jean Drèze, Lok Sabha TV, Macroeconomics, Manmohan Singh, Microeconomic foundations of macroeconomics, Milton Friedman, Raghuram Govind Rajan, Raghuram Rajan, Rajiv Gandhi, Reverse-Euro Model for India, Sen-Bhagwati spat, Sonia Gandhi. 1 Comment »

Did Jagdish Bhagwati “originate”, “pioneer”, “intellectually father” India’s 1991 economic reform? Did Manmohan Singh? Or did I, through my encounter with Rajiv Gandhi, just as Siddhartha Shankar Ray told Manmohan & his aides in Sep 1993 in Washington? Judge the evidence for yourself. And why has Amartya Sen misdescribed his work? India’s right path forward today remains what I said in my 3 Dec 2012 Delhi lecture!

Did Jagdish Bhagwati “originate”, “pioneer”, “intellectually father” India’s 1991 economic reform?  Did Manmohan Singh? Or did I, through my encounter with Rajiv Gandhi, just as Siddhartha Shankar Ray told Manmohan & his aides in Sep 1993 in Washington?  Judge the evidence for yourself.  And why has Amartya Sen misdescribed his work? India’s right path forward today remains what I said in my 3 Dec 2012 Delhi lecture!

 

Contents

 

Part I:  Facts vs Fiction, Flattery, Falsification, etc

 

1. Problem

2.    Rajiv Gandhi, Siddhartha Shankar Ray, Milton Friedman & Myself

3.     Jagdish Bhagwati & Manmohan Singh?  That just don’t fly!

 4.    Amartya Sen’s Half-Baked Communism:  “To each according to his need”?

 

  Part II:    India’s Right Road Forward Now: Some Thoughtful Analysis for Grown Ups

5.   Transcending a Left-Right/Congress-BJP Divide in Indian Politics

6.   Budgeting Military & Foreign Policy

7.    Solving the Kashmir Problem & Relations with Pakistan

8.  Dealing with Communist China

9.   Towards Coherence in Public Accounting, Public Finance & Public Decision-Making

10.   India’s Money: Towards Currency Integrity at Home & Abroad

 

 

Part I:  Facts vs Fiction, Flattery, Falsification, etc

 

1. Problem


Arvind Panagariya says in the Times of India of 27 July 2013

 

 “…if in 1991 India embraced many of the Track-I reforms, writings by Sen played no role in it… The intellectual origins of the reforms are to be found instead in the writings of Bhagwati, both solely and jointly with Padma Desai and T N Srinivasan….”

 

Now Amartya Sen has not claimed involvement in the 1991 economic reforms so we are left with Panagariya claiming

 

“The intellectual origins of the reforms are to be found instead in the writings of Bhagwati…”

 

Should we suppose Professor Panagariya’s master and co-author Jagdish Bhagwati himself substantially believes and claims the same?  Three recent statements from Professor Bhagwati suffice by way of evidence:

 

(A)  Bhagwati said to parliamentarians in the Lok Sabha on 2 December 2010 about the pre-1991 situation:

 

“This policy framework had been questioned, and its total overhaul advocated, by me and Padma Desai in writings through the late 1960s which culminated in our book, India: Planning for Industrialization (Oxford University Press: 1970) with a huge blowback at the time from virtually all the other leading economists and policymakers who were unable to think outside the box. In the end, our views prevailed and the changes which would transform the economy began, after an external payments crisis in 1991, under the forceful leadership of Prime Minister Manmohan Singh who was the Finance Minister at the time….”

 

(B)  Bhagwati said to Economic Times on 28 July 2013:

 

“When finance minister Manmohan Singh was in New York in 1992, he had a lunch for many big CEOs whom he was trying to seduce to come to India. He also invited me and my wife, Padma Desai, to the lunch. As we came in, the FM introduced us to the invitees and said: ‘These friends of mine wrote almost a quarter century ago [India: Planning for Industrialisation was published in 1970 by Oxford] recommending all the reforms we are now undertaking. If we had accepted the advice then, we would not be having this lunch as you would already be in India’.”

 

(C)  And Bhagwati said in Business Standard of 9 August 2013:

 

“… I was among the intellectual pioneers of the Track I reforms that transformed our economy and reduced poverty, and witness to that is provided by the Prime Minister’s many pronouncements and by noted economists like Deena Khatkhate.. I believe no one has accused Mr. Sen of being the intellectual father of these reforms. So, the fact is that this huge event in the economic life of India passed him by…”

 

From these pronouncements it seems fair to conclude Professors Bhagwati and Panagariya are claiming Bhagwati has been the principal author of “the intellectual origins” of India’s 1991 reforms, has been their “intellectual father” or at the very least has been “among the intellectual pioneers” of the reform (“among” his own collaborators and friends, since none else is mentioned).  Bhagwati has said too his friend Manmohan Singh as Finance Minister participated in the process while quoting Manmohan as having said Bhagwati was the principal author. 

 

Bhagwati’s opponent in current debate,  Amartya Sen, has been in agreement with him that Manmohan, their common friend during college days at Cambridge in the 1950s, was a principal originating the 1991 reforms, saying to Forbes in 2006:

 

“When Manmohan Singh came to office in the early 1990s as the newly appointed finance minister, in a government led by the Congress Party, he knew these problems well enough, as someone who had been strongly involved in government administration for a long time.”

 

In my experience, such sorts of claims, even in their weakest form, have been, at best, scientifically sloppy and unscholarly,  at worst mendacious suppressio veri/suggestio falsi, and in between these best and worst interpretations, examples of academic self-delusion and mutual flattery.  We shall see Bhagwati’s opponent, Amartya Sen, has denied academic paternity of recent policies he has spawned while appearing to claim academic paternity of things he has not!  Everyone may have reasonably expected greater self-knowledge, wisdom and scholarly values of such eminent academics.  Their current spat has instead seemed to reveal something rather dismal and self-serving. 

 

You can decide for yourself where the truth, ever such an elusive and fragile thing, happens to be and what is best done about it.   Here is some evidence.

 

 

2.  Rajiv Gandhi, Siddhartha Shankar Ray,  Milton Friedman & Myself

 

Professor Arvind Panagariya is evidently an American economics professor of Indian national origin who holds the Jagdish Bhagwati Chair of Indian Political Economy at Columbia University.   I am afraid I had not known his name until he mentioned my name in Economic Times of  24 October 2001.   He said

 

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In mentioning the volume “edited by Subroto Roy and William E  James”,  Professor Panagariya did not appear to find the normal scientific civility to identify our work by name, date or publisher.  So here that is now:

 

 

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This was a book published in 1992 by the late Tejeshwar Singh for Sage.  It resulted from the University of Hawaii Manoa perestroika-for-India project, that I and Ted James created and led between 1986 and 1992/93.   (Yes, Hawaii — not Stanford, Harvard, Yale, Columbia or even Penn, whose India-policy programs were Johnny-come-latelies a decade or more later…)   There is a sister-volume too on Pakistan, created by a parallel project Ted and I had led at the same time:

 

 

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In 2004 from Britain, I wrote to the 9/11 Commission saying if our plan to study Afghanistan after India and Pakistan had not been thwarted by malign local forces among our sponsors themselves, we, a decade before the September 11 2001 attacks on the USA, may  just have come up with a pre-emptive academic analysis.   It was not to be.

 

Milton Friedman’s chapter that we published for the first time was a memorandum he wrote in November 1955 for the Government of India which the GoI had effectively suppressed.  I came to know of it while a doctoral student at Cambridge under Frank Hahn, when at a conference at Oxford about 1979-1980, Peter Tamas Bauer sat me down beside him and told me the story.  Later in Blacksburg about 1981, N. Georgescu-Roegen on a visit from Vanderbilt University told me the same thing.  Specifically, Georgescu-Roegen told me that leading Indian academics had almost insulted Milton in public which Milton had borne gamely; that after Milton had given a talk in Delhi to VKRV Rao’s graduate-students,  a talk Georgescu-Roegen had been present at, VKRV Rao had addressed the students and told them in all seriousness “You have heard what Professor Friedman has to say, if you repeat what he has said in your exams, you will fail”.

 

In 1981-1982 my doctoral thesis emerged, titled “On liberty & economic growth: preface to a philosophy for India”,

 

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My late great master in economic theory, Frank Hahn (1925-2013), found what I had written to be a “good thesis” bringing “a good knowledge of economics and of philosophy to bear on the literature on economic planning”, saying I had  shown “a good knowledge of economic theory” and my “critique of Development Economics was powerful not only on methodological but also on economic theory grounds”.  

 

I myself said about it decades later “My original doctoral topic in 1976  ‘A monetary theory for India’ had to be altered not only due to paucity of monetary data at the time but because the problems of India’s political economy and allocation of resources in the real economy were far more pressing. The thesis that emerged in 1982 … was a full frontal assault from the point of view of microeconomic theory on the “development planning” to which everyone routinely declared their fidelity, from New Delhi’s bureaucrats and Oxford’s “development” school to McNamara’s World Bank with its Indian staffers.  Frank Hahn protected my inchoate liberal arguments for India; and when no internal examiner could be found, Cambridge showed its greatness by appointing two externals, Bliss at Oxford and Hutchison at Birmingham, both Cambridge men. “Economic Theory and Development Economics” was presented to the American Economic Association in December 1982 in company of Solow, Chenery, Streeten, and other eminences…” How I landed on that eminent AEA panel in December 1982 was because its convener Professor George Rosen of the University of Illinois recruited me overnight — as a replacement for Jagdish Bhagwati, who had had to return to India suddenly because of a parental death.  The results were published in 1983 in World Development.

 

Soon afterwards, London’s Institute of Economic Affairs published Pricing, Planning and Politics: A Study of Economic Distortions in India.  This slim work was the first classical liberal critique of post-Mahalonobis Indian economic thought since BR Shenoy’s original criticism decades earlier.  It became the subject of The Times’ lead editorial on its day of publication 29 May 1984 — provoking the Indian High Commission in London to send copies to the Finance Ministry in Delhi where it apparently caused a stir, or so I was told years later by Amaresh Bagchi who was a recipient of it at the Ministry.

 

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The Times had said

 

“When Mr. Dennis Healey in the Commons recently stated that Hongkong, with one per cent of the population of India has twice India’s trade, he was making an important point about Hongkong but an equally important point about India. If Hongkong with one per cent of its population and less than 0.03 per cert of India’s land area (without even water as a natural resource) can so outpace India, there must be something terribly wrong with the way Indian governments have managed their affairs, and there is. A paper by an Indian economist published today (Pricing, Planning and Politics: A Study of Economic Distortions in India by Subroto Roy, IEA £1.80) shows how Asia’s largest democracy is gradually being stifled by the imposition of economic policies whose woeful effect and rhetorical unreality find their echo all over the Third World. As with many of Britain’s former imperial possessions, the rot set in long before independence. But as with most of the other former dependencies, the instrument of economic regulation and bureaucratic control set up by the British has been used decisively and expansively to consolidate a statist regime which inhibits free enterprise, minimizes economic success and consolidates the power of government in all spheres of the economy. We hear little of this side of things when India rattles the borrowing bowl or denigrates her creditors for want of further munificence. How could Indian officials explain their poor performance relative to Hongkong? Dr Roy has the answers for them. He lists the causes as a large and heavily subsidized public sector, labyrinthine control over private enterprise, forcibly depressed agricultural prices, massive import substitution, government monopoly of foreign exchange transactions, artificially overvalued currency and the extensive politicization of the labour market, not to mention the corruption which is an inevitable side effect of an economy which depends on the arbitrament of bureaucrats. The first Indian government under Nehru took its cue from Nehru’s admiration of the Soviet economy, which led him to believe that the only policy for India was socialism in which there would be “no private property except in a restricted sense and the replacement of the private profit system by a higher ideal of cooperative service.” Consequently, the Indian government has now either a full monopoly or is one of a few oligipolists in banking, insurance, railways, airlines, cement, steel, chemicals, fertilizers, ship-building, breweries, telephones and wrist-watches. No businessman can expand his operation while there is any surplus capacity anywhere in that sector. He needs government approval to modernize, alter his price-structure, or change his labour shift. It is not surprising that a recent study of those developing countries which account for most manufactured exports from the Third World shows that India’s share fell from 65 percent in 1953 to 10 per cent in 1973; nor, with the numerous restrictions on inter-state movement of grains, that India has over the years suffered more from an inability to cope with famine than during the Raj when famine drill was centrally organized and skillfully executed without restriction. Nehru’s attraction for the Soviet model has been inherited by his daughter, Mrs. Gandhi. Her policies have clearly positioned India more towards the Soviet Union than the West. The consequences of this, as Dr Roy states, is that a bias can be seen in “the antipathy and pessimism towards market institutions found among the urban public, and sympathy and optimism to be found for collectivist or statist ones.” All that India has to show for it is the delivery of thousands of tanks in exchange for bartered goods, and the erection of steel mills and other heavy industry which help to perpetuate the unfortunate obsession with industrial performance at the expense of agricultural growth and the relief of rural poverty.”…..

 

I felt there were inaccuracies in this and so replied  dated 4 June which The Times published on 16 June 1984:

 

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Milton and I met for the first time in the Fall of 1984 at the Mont Pelerin Society meetings at Cambridge when I gave him a copy of the IEA monograph, which he came to think extremely well of.   I told him I had heard of his 1955 document and asked him for it; he sent me the original blue/purple version of this soon thereafter.

 

[That original document was, incidentally,  in my professorial office among all my books, papers, theses and other academic items including my gown when I was attacked in 2003 by a corrupt gang at IIT Kharagpur —  all yet to be returned to me by IIT despite a High Court order during my present ongoing battle against corruption there over a USD 1.9 million scam !… Without having ever wished to, I have had to battle India’s notorious corruption first hand for a decade!]

 

I published Milton’s document for the first time on 21 May 1989 at the conference of the Hawaii project over the loud objection of assorted leftists… 

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Amartya Sen, Jagdish Bhagwati, Manmohan Singh or any of their acolytes will not be seen in this group photograph dated 21 May 1989 at the UH President’s House, because they were not there.  The Government of India was represented by the Ambassador to Washington, PK Kaul, as well as the Consul General in San Francisco, KS Rana (later Ambassador to Germany), besides the founding head of ICRIER who had invited himself.  

 

Manmohan Singh was not there as he precisely represented the Indian economic policy establishment I had been determined to reform!   In any case, he had left India about 1987 on his last assignment before retirement, with Julius Nyerere of Tanzania relating to the “South-South Commission”.  

 

I have said over more than a half dozen years now that there is no evidence whatsoever of Manmohan Singh having been a liberal economist in any sense of that word at any time before 1991, and scant evidence that he originated any liberal economic ideas since.  The widespread worldwide notion that he is to be credited for originating a sudden transformation of India from a path of pseudo-socialism to one of pseudo-liberalism has been without basis in evidence — almost entirely a political fiction, though an explicable one and one which has served, as such political fictions do, the purposes of those who invent them.

 

Jagdish Bhagwati and Amartya Sen were in their mid 50s and were two of the three senior-most Indians in US academic economics at the time.  I and Ted James, both in our 30s, decided to invite both Bhagwati and Sen to the Hawaii project-conference as distinguished guests but to do so somewhat insincerely late in the day, predicting they would decline, which is what they did, yet they had come to be formally informed of what we were doing.  We had a very serious attitude that was inspired a bit, I might say, by Oppenheimer’s secret “Manhattan project” and we wanted neither press-publicity nor anyone to become the star who ended up hogging the microphone or the limelight.

 

Besides, and most important of all, neither Bhagwati nor Sen had done work in the areas we were centrally interested in, namely, India’s macroeconomic and foreign trade framework and fiscal and monetary policies.   

 

Bhagwati, after his excellent 1970 work with Padma Desai for the OECD on Indian industry and trade, also co-authored with TN Srinivasan a fine 1975 volume for the NBER  Foreign Trade Regimes and Economic Development: India. 

 

TN Srinivasan was the third of the three senior-most Indian economists at the time in US academia; his work made us want to invite him as one of our main economic authors, and we charged him with writing the excellent chapter in Foundations that he came to do titled “Planning and Foreign Trade Reconsidered”.

 

The other main economist author we had hoped for was Sukhamoy Chakravarty from Delhi University and the Government of India’s Planning Commission, whom I had known since 1977 when I had been given his office at the Delhi School of Economics as a Visiting Assistant Professor while he was on sabbatical; despite my pleading he would not come due to ill health; he strongly recommended C Rangarajan, telling me Rangarajan had been the main author with him of the crucial 1985 RBI report on monetary policy; and he signed and gave me his last personal copy of that report dating it 14 July 1987.  Rangarajan said he could not come and recommended the head of the NIPFP, Amaresh Bagchi, promising to write jointly with him the chapter on monetary policy and public finance. 

 

Along with Milton Friedman’s suppressed 1955 memorandum which I was publishing for the first time in 1989, TN Srinivasan and Amaresh Bagchi authored the three main economic policy chapters that we felt we wanted. 

 

Other chapters we commissioned had to do with the state of governance (James Manor), federalism (Bhagwan Dua), Punjab and similar problems (PR Brass), agriculture (K Subbarao, as proposed by CH Hanumantha Rao), health (Anil Deolalikar, through open advertisement), and a historical assessment of the roots of economic policy (BR Tomlinson, as proposed by Anil Seal).  On the vital subject of education we failed to agree with the expert we wanted very much  (JBG Tilak, as proposed by George Psacharopolous) and so we had to cover the subject cursorily in our introduction mentioning his work.  And decades later, I apologised to Professor Dietmar Rothermund of Heidelberg University for having been so blinkered in the Anglo-American tradition at the time as to not having obtained his participation in the project.  

 

[The sister-volume we commissioned in parallel on Pakistan’s political economy had among its authors Francis Robinson, Akbar Ahmed, Shirin Tahir-Kehli, Robert La Porte, Shahid Javed Burki, Mohsin Khan, Mahmood Hasan Khan,  Naved Hamid, John Adams and Shahrukh Khan; this book came to be published in Pakistan in 1993 to good reviews but apparently was then lost by its publisher and is yet to be found; the military and religious clergy had been deliberately not invited by us though the name of Pervez Musharraf had I think arisen, and the military and religious clergy in fact came to rule the roost through the 1990s in Pakistan; the volume, two decades old, takes on fresh relevance with the new civilian governments of recent years.] [Postscript  27 November 2015: See my strident critique at Twitter of KM Kasuri, P Musharraf et al  e.g. at https://independentindian.com/2011/11/22/pakistans-point-of-view-or-points-of-view-on-kashmir-my-as-yet-undelivered-lahore-lecture-part-i/ passing off ideas they have taken from this volume without acknowledgement, ideas which have in any case become defunct  to their author, myself.]

 

Milton himself said this about his experience with me in his memoirs:

 

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And Milton wrote on my behalf when I came to be attacked, being Indian, at the very University that had sponsored us:

 

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My obituary notice at his passing in 2006 said: “My association with Milton has been the zenith of my engagement with academic economics…. I was a doctoral student of his bitter enemy yet for over two decades he not only treated me with unfailing courtesy and affection, he supported me in lonely righteous battles: doing for me what he said he had never done before, which was to stand as an expert witness in a United States Federal Court. I will miss him much though I know that he, as a man of reason, would not have wished me to….”

 

In August 1990 in Delhi I came to tell Siddhartha Shankar Ray about the unpublished India-manuscript resulting from the Hawaii project that was in my possession as it headed to its publisher. 

 

Ray was a family-friend whose maternal grandfather CR Das led the Congress Party before MK Gandhi and had been a friend and colleague of my great grandfather SN Roy in Bengal’s politics in the 1920s;  Ray had also consented to stand on my behalf as Senior Counsel in a matter in the Supreme Court of India. 

 

Ray was involved in daily political parlays at his Delhi home with other Congress Party personages led by PV Narasimha Rao.  These senior regional figures seemed to me to be keeping their national leader, Rajiv Gandhi, aloof in splendid isolation at 10 Jan Path. 

 

Ray told me he and his wife had been in London in May 1984 on the day The Times had written its lead editorial on my work and they had seen it with excitement.  Upon hearing of the Hawaii project and the manuscript I had with me, Ray immediately insisted of his own accord that I must meet Rajiv Gandhi, and that he would be arranging a meeting. 

 

Hence it came to be a month later that a copy of the manuscript of the completed Hawaii project was be given by my hand on 18 September 1990 to Rajiv Gandhi, then Leader of the Opposition and Congress President, an encounter I have quite fully described elsewhere.  I offered to get a copy to the PM, VP Singh, too but a key aide of his showed no interest in receiving it.

 

Rajiv made me a senior adviser, and I have claimed principal authorship of the 22 March 1991 draft of the Congress manifesto that actually shook and changed the political thinking of the Congress on economic matters in the direction Rajiv had desired and as I had advised him at our initial 18 September 1990 meeting. 

 

“… He began by talking about how important he felt panchayati raj was, and said he had been on the verge of passing major legislation on it but then lost the election. He asked me if I could spend some time thinking about it, and that he would get the papers sent to me. I said I would and remarked panchayati raj might be seen as decentralized provision of public goods, and gave the economist’s definition of public goods as those essential for the functioning of the market economy, like the Rule of Law, roads, fresh water, and sanitation, but which were unlikely to appear through competitive forces.

 

I distinguished between federal, state and local levels and said many of the most significant public goods were best provided locally. Rajiv had not heard the term “public goods” before, and he beamed a smile and his eyes lit up as he voiced the words slowly, seeming to like the concept immensely. It occurred to me he had been by choice a pilot of commercial aircraft. Now he seemed intrigued to find there could be systematic ways of thinking about navigating a country’s governance by common pursuit of reasonable judgement. I said the public sector’s wastefulness had drained scarce resources that should have gone instead to provide public goods. Since the public sector was owned by the public, it could be privatised by giving away its shares to the public, preferably to panchayats of the poorest villages. The shares would become tradable, drawing out black money, and inducing a historic redistribution of wealth while at the same time achieving greater efficiency by transferring the public sector to private hands. Rajiv seemed to like that idea too, and said he tried to follow a maxim of Indira Gandhi’s that every policy should be seen in terms of how it affected the common man. I wryly said the common man often spent away his money on alcohol, to which he said at once it might be better to think of the common woman instead. (This remark of Rajiv’s may have influenced the “aam admi” slogan of the 2004 election, as all Congress Lok Sabha MPs of the previous Parliament came to receive a previous version of the present narrative.)

 

Our project had identified the Congress’s lack of internal elections as a problem; when I raised it, Rajiv spoke of how he, as Congress President, had been trying to tackle the issue of bogus electoral rolls. I said the judiciary seemed to be in a mess due to the backlog of cases; many of which seemed related to land or rent control, and it may be risky to move towards a free economy without a properly functioning judicial system or at least a viable system of contractual enforcement. I said a lot of problems which should be handled by the law in the courts in India were instead getting politicised and decided on the streets. Rajiv had seen the problems of the judiciary and said he had good relations with the Chief Justice’s office, which could be put to use to improve the working of the judiciary.

 

The project had worked on Pakistan as well, and I went on to say we should solve the problem with Pakistan in a definitive manner. Rajiv spoke of how close his government had been in 1988 to a mutual withdrawal from Siachen. But Zia-ul-Haq was then killed and it became more difficult to implement the same thing with Benazir Bhutto, because, he said, as a democrat, she was playing to anti-Indian sentiments while he had found it somewhat easier to deal with the military. I pressed him on the long-term future relationship between the countries and he agreed a common market was the only real long-term solution. I wondered if he could find himself in a position to make a bold move like offering to go to Pakistan and addressing their Parliament to break the impasse. He did not say anything but seemed to think about the idea. Rajiv mentioned a recent Time magazine cover of Indian naval potential, which had caused an excessive stir in Delhi. He then talked about his visit to China, which seemed to him an important step towards normalization. He said he had not seen (or been shown) any absolute poverty in China of the sort we have in India. He talked about the Gulf situation, saying he did not disagree with the embargo of Iraq except he wished the ships enforcing the embargo had been under the U.N. flag. The meeting seemed to go on and on, and I was embarrassed at perhaps having taken too much time and that he was being too polite to get me to go. V. George had interrupted with news that Sheila Dixit (as I recall) had just been arrested by the U. P. Government, and there were evidently people waiting. Just before we finally stood up I expressed a hope that he was looking to the future of India with an eye to a modern political and economic agenda for the next election, rather than getting bogged down with domestic political events of the moment. That was the kind of hopefulness that had attracted many of my generation in 1985. I said I would happily work in any way to help define a long-term agenda. His eyes lit up and as we shook hands to say goodbye, he said he would be in touch with me again…. The next day I was called and asked to stay in Delhi for a few days, as Mr. Gandhi wanted me to meet some people…..

 

… That night Krishna Rao dropped me at Tughlak Road where I used to stay with friends. In the car I told him, as he was a military man with heavy security cover for himself as a former Governor of J&K, that it seemed to me Rajiv’s security was being unprofessionally handled, that he was vulnerable to a professional assassin. Krishna Rao asked me if I had seen anything specific by way of vulnerability. With John Kennedy and De Gaulle in mind, I said I feared Rajiv was open to a long-distance sniper, especially when he was on his campaign trips around the country.  This was one of several attempts I made since October 1990 to convey my clear impression to whomever I thought might have an effect that Rajiv seemed to me extremely vulnerable. Rajiv had been on sadhbhavana journeys, back and forth into and out of Delhi. I had heard he was fed up with his security apparatus, and I was not surprised given it seemed at the time rather bureaucratized. It would not have been appropriate for me to tell him directly that he seemed to me to be vulnerable, since I was a newcomer and a complete amateur about security issues, and besides if he agreed he might seem to himself to be cowardly or have to get even closer to his security apparatus. Instead I pressed the subject relentlessly with whomever I could. I suggested specifically two things: (a) that the system in place at Rajiv’s residence and on his itineraries be tested, preferably by some internationally recognized specialists in counter-terrorism; (b) that Rajiv be encouraged to announce a shadow-cabinet. The first would increase the cost of terrorism, the second would reduce the potential political benefit expected by terrorists out to kill him. On the former, it was pleaded that security was a matter being run by the V. P. Singh and then Chandrashekhar Governments at the time. On the latter, it was said that appointing a shadow cabinet might give the appointees the wrong idea, and lead to a challenge to Rajiv’s leadership. This seemed to me wrong, as there was nothing to fear from healthy internal contests for power so long as they were conducted in a structured democratic framework. I pressed to know how public Rajiv’s itinerary was when he travelled. I was told it was known to everyone and that was the only way it could be since Rajiv wanted to be close to the people waiting to see him and had been criticized for being too aloof. This seemed to me totally wrong and I suggested that if Rajiv wanted to be seen as meeting the crowds waiting for him then that should be done by planning to make random stops on the road that his entourage would take. This would at least add some confusion to the planning of potential terrorists out to kill him. When I pressed relentlessly, it was said I should probably speak to “Madame”, i.e. to Mrs. Rajiv Gandhi. That seemed to me highly inappropriate, as I could not be said to be known to her and I should not want to unduly concern her in the event it was I who was completely wrong in my assessment of the danger. The response that it was not in Congress’s hands, that it was the responsibility of the VP Singh and later the Chandrashekhar Governments, seemed to me completely irrelevant since Congress in its own interests had a grave responsibility to protect Rajiv Gandhi irrespective of what the Government’s security people were doing or not doing. Rajiv was at the apex of the power structure of the party, and a key symbol of secularism and progress for the entire country. Losing him would be quite irreparable to the party and the country. It shocked me that the assumption was not being made that there were almost certainly professional killers actively out to kill Rajiv Gandhi — this loving family man and hapless pilot of India’s ship of state who did not seem to have wished to make enemies among India’s terrorists but whom the fates had conspired to make a target. The most bizarre and frustrating response I got from several respondents was that I should not mention the matter at all as otherwise the threat would become enlarged and the prospect made more likely! This I later realized was a primitive superstitious response of the same sort as wearing amulets and believing in Ptolemaic astrological charts that assume the Sun goes around the Earth — centuries after Kepler and Copernicus. Perhaps the entry of scientific causality and rationality is where we must begin in the reform of India’s governance and economy. What was especially repugnant after Rajiv’s assassination was to hear it said by his enemies that it marked an end to “dynastic” politics in India. This struck me as being devoid of all sense because the unanswerable reason for protecting Rajiv Gandhi was that we in India, if we are to have any pretensions at all to being a civilized and open democratic society, cannot tolerate terrorism and assassination as means of political change. Either we are constitutional democrats willing to fight for the privileges of a liberal social order, or ours is truly a primitive and savage anarchy concealed beneath a veneer of fake Westernization….. Proceedings began when Rajiv arrived. This elite audience mobbed him just as the farmers had mobbed him earlier. He saw me and beamed a smile in recognition, and I smiled back but made no attempt to draw near him in the crush. He gave a short very apt speech on the role the United Nations might have in the new post-Gulf War world. Then he launched the book, and left for an investiture at Rashtrapati Bhavan. We waited for our meeting with him, which finally happened in the afternoon. Rajiv was plainly at the point of exhaustion and still hard-pressed for time. He seemed pleased to see me and apologized for not talking in the morning. Regarding the March 22 draft, he said he had not read it but that he would be doing so. He said he expected the central focus of the manifesto to be on economic reform, and an economic point of view in foreign policy, and in addition an emphasis on justice and the law courts. I remembered our September 18 conversation and had tried to put in justice and the courts into our draft but had been over-ruled by others. I now said the social returns of investment in the judiciary were high but was drowned out again. Rajiv was clearly agitated that day by the BJP and blurted out he did not really feel he understood what on earth they were on about. He said about his own family, “We’re not religious or anything like that, we don’t pray every day.” I felt again what I had felt before, that here was a tragic hero of India who had not really wished to be more than a happy family man until he reluctantly was made into a national leader against his will. We were with him for an hour or so. As we were leaving, he said quickly at the end of the meeting he wished to see me on my own and would be arranging a meeting. One of our group was staying back to ask him a favour. Just before we left, I managed to say to him what I felt was imperative: “The Iraq situation isn’t as it seems, it’s a lot deeper than it’s been made out to be.” He looked at me with a serious look and said “Yes I know, I know.” It was decided Pitroda would be in touch with each of us in the next 24 hours. During this time Narasimha Rao’s manifesto committee would read the draft and any questions they had would be sent to us. We were supposed to be on call for 24 hours. The call never came. Given the near total lack of system and organization I had seen over the months, I was not surprised. Krishna Rao and I waited another 48 hours, and then each of us left Delhi. Before going I dropped by to see Krishnamurty, and we talked at length. He talked especially about the lack of the idea of teamwork in India. Krishnamurty said he had read everything I had written for the group and learned a lot. I said that managing the economic reform would be a critical job and the difference between success and failure was thin….”

 

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“… I got the afternoon train to Calcutta and before long left for America to bring my son home for his summer holidays with me. In Singapore, the news suddenly said Rajiv Gandhi had been killed. All India wept. What killed him was not merely a singular act of criminal terrorism, but the system of humbug, incompetence and sycophancy that surrounds politics in India and elsewhere. I was numbed by rage and sorrow, and did not return to Delhi….”

 

In December 1991, I visited Rajiv’s widow at 10 Jan Path to express my condolences, the only time I have met her, and I gave her for her records a taped copy of Rajiv’s long-distance telephone conversations with me during the Gulf War earlier that year.   She seemed an extremely shy taciturn figure in deep mourning, and I do not think the little I said to her about her late husband’s relationship with me was comprehended.  Nor was it the time or place for more to be said.

 

In September 1993, at a special luncheon at the Indian Ambassador’s Residence in Washington, Siddhartha Shankar Ray, then the Ambassador to Washington, pointed at me and declared to Manmohan Singh, then Finance Minister, in presence of Manmohan’s key aides accompanying him including MS Ahluwalia, NK Singh, C Rangarajan and others,

 

“Congress manifesto was written on his computer”.

 

This was accurate enough to the extent that the 22 March 1991 draft as asked for by Rajiv and that came to explicitly affect policy had been and remains on my then-new NEC laptop.

 

At the Ambassador’s luncheon, I gave Manmohan Singh a copy of the Foundations book as a gift.  My father who knew him in the early 1970s through MG Kaul, ICS, had sent him a copy of my 1984 IEA monograph which Manmohan had acknowledged.  And back in 1973, he had visited our then-home at 14 Rue Eugene Manuel in Paris to advise me about economics at my father’s request, and he and I had ended up in a fierce private debate for about forty minutes over the demerits (as I saw them) and merits (as he saw them) of the Soviet influence on Indian economic policy-making.  But in 1993 we had both forgotten the 1973 meeting.  

 

In May 2002, the Congress passed an official party resolution moved by Digvijay Singh in presence of PV Narasimha Rao and Manmohan Singh that the 1991 reforms had originated with Rajiv Gandhi and not with either Narasimha Rao or Manmohan; no one dissented.  It was intended to flatter Sonia Gandhi as the Congress President,  but there was truth in it too which all Congress MPs of the 13th Lok Sabha had come to know in a publication of mine they had received from me at IIT Kharagpur where since 1996 I had become Professor.  

 

Manmohan Singh himself, to his credit, has not at any point, except once during his failed Lok Sabha bid, claimed the reforms as his own invention and has said always he had followed what his Prime Minister had told him. However, he has not been averse to being attributed with all the credit by his flatterers, by the media, by businessmen and many many others around the world, and certainly he did not respond to Ambassador Siddhartha Shankar Ray telling him and his key aides how the Congress-led reform had come about through my work except to tell me at the 1993 luncheon that when Arjun Singh criticised the reforms in Cabinet, he, Manmohan, would mention the manifesto. 

 

On 28 December 2009, Rajiv’s widow in an official Congress Party statement finally declared her late husband

 

left his personal imprint on the (Congress) party’s manifesto of 1991.″ 

 

How Sonia Gandhi, who has never had pretensions to knowledge of economics or political economy or political science or governance or history, came to place Manmohan Singh as her prime ministerial candidate and the font of economic and political wisdom along with Pranab Mukherjee, when both men hardly had been favourites of her late husband, would be a story in its own right.  And how Amartya Sen’s European-origin naturalised Indian co-author Jean Drèze later came to have policy influence from a different direction upon Sonia Gandhi, also a naturalised Indian of European origin, may be yet another story in its own right,  perhaps best told by themselves.

 

I would surmise the same elderly behind-the-scenes figure, now in his late 80s, had a hand in setting up both sets of influences — directly in the first case (from back in 1990-1991),  and indirectly in the second case (starting in 2004) .  This was a man who in a November 2007 newspaper article literally erased my name and inserted that of Manmohan Singh as part of the group that Rajiv created on 25 September following his 18 September meeting with me!   Reluctantly, I had to call this very elderly man a liar; he has not denied it and knows he has not been libeled.

 

One should never forget the two traditional powers interested in the subcontinent, Russia and Britain, have been never far from influence in Delhi.  In 1990-1991 what worried vested bureaucratic and business interests and foreign powers through their friends and agents was that they could see change was coming to India but they wanted to be able to control it themselves to their advantage, which they then broadly proceeded to do over the next two decades.  The foreign weapons’ contracts had to be preserved, as did other big-ticket imports that India ends up buying needlessly on credit it hardly has in world markets.  There are similarities to what happened in Russia and Eastern Europe where many apparatchiks and fellow-travellers became freedom-loving liberals overnight;  in the Indian case more than one badly compromised pro-USSR senior bureaucrat promptly exported his children and savings to America and wrapped themselves in the American flag.

 

The stubborn unalterable fact remains that Manmohan Singh was not physically present in India and was still with the Nyerere project on 18 September 1990 when I met Rajiv for the first time and gave him the unpublished results of the UH-Manoa project.  This simple straightforward fact is something the Congress Party, given its own myths and self-deception and disinformation, has not been able to cope with in its recently published history.   For myself, I have remained loyal to my memory of my encounter with Rajiv Gandhi, and my understanding of him.  The Rajiv Gandhi I knew had been enthused by me in 1990-1991 carrying the UH-Manoa perestroika-for-India project that I had led since 1986, and he had loved my advice to him on 18 September 1990 that he needed to modernise the party by preparing a coherent agenda (as other successful reformers had done) while still in Opposition waiting for elections, and to base that agenda on commitments to improving the judiciary and rule of law, stopping the debauching of money, and focusing on the provision of public goods instead.    Rajiv I am sure wanted a modern and modern-minded Congress — not one which depended on him let aside his family, but one which reduced that dependence and let him and his family alone.

 

As for Manmohan Singh being a liberal or liberalising economist, there is no evidence publicly available of that being so from his years before or during the Nyerere project, or after he returned and joined the Chandrashekhar PMO and the UGC  until becoming,  to his own surprise as he told Mark Tully,  PV Narasimha Rao’s Finance Minister.  Some of his actions qua Finance Minister were liberalising in nature but he did not originate any basic idea of a change in a liberal direction of economic policy, and he has, with utmost honesty honestly, not claimed otherwise.  Innumerable flatterers and other self-interested parties have made out differently, creating what they have found to be a politically useful fiction; he has yet to deny them.

 

Siddhartha Shankar Ray and I met last in July 2009, when I gave him a copy of this 2005 volume I had created, which pleased him much. 

 

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I said to him Bengal’s public finances were in abysmal condition, calling for emergency measures financially, and that Mamata Banerjee seemed to me to be someone who knew how to and would dislodge the Communists from their entrenched misgovernance of decades but she did not seem quite aware that dislodging a bad government politically was not the same thing as knowing how to govern properly oneself.  He,  again of his own accord, said immediately, 

 

“I will call her and her people to a meeting here so you can meet them and tell them that directly”. 

 

It never transpired.  In our last phone conversation I mentioned to him my plans of creating a Public Policy Institute — an idea he immediately and fully endorsed as being essential though adding “I can’t be part of it,  I’m on my way out”.

 

“I’m on my way out”.   That was Siddhartha Shankar Ray — always intelligent, always good-humoured, always public-spirited, always a great Indian, my only friend among politicians other than the late Rajiv Gandhi himself.

 

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In March February 2010, my father and I called upon the new Bengal Governor, MK Narayanan and gave him a copy of the Thatcher volume for the Raj Bhavan Library; I told him the story about my encounter with Rajiv Gandhi thanks to Siddhartha Shankar Ray and its result;  Narayanan within a few days made a visit to Ray’s hospital-bed, and when he emerged after several hours he made a statement, which in substance he repeated again when Ray died in November 2010:

 

“There are few people in post-Independence India who could equal his magnificent contribution to India’s growth and progress”.

 

To what facts did MK Narayanan, a former Intelligence Bureau chief, mean to refer with this extravagant praise of Ray?  Was Narayanan referring to Ray’s politics for Indira Gandhi?  To Ray’s Chief Ministership of Bengal?  To Ray’s Governorship of Punjab?  You will have to ask him but I doubt that was what he meant:  I surmise Narayanan’s eulogy could only have resulted after he confirmed with Ray on his hospital-bed the story I had told him, and that he was referring to the economic and political results that followed for the country once Ray had introduced me in September 1990 to Rajiv Gandhi. But I say again, you will have to ask MK Narayanan himself what he and Ray talked about in hospital and what was the factual basis of Narayanan’s precise words of praise. To what facts exactly was MK Narayanan, former intelligence chief, meaning to refer when he stated Siddhartha Shankar Ray had made a “magnificent contribution to India’s growth and progress”?

 

 

3.   Jagdish Bhagwati & Manmohan Singh?  That just don’t fly!

 

Now returning to the apparent desire of Professor Panagariya, the Jagdish Bhagwati Professor of Indian Political Economy at Columbia, to attribute to Jagdish Bhagwati momentous change for the better in India as of 1991, even if Panagariya had not the scientific curiosity to look into our 1992 book titled Foundations of India’s Political Economy: Towards an Agenda for the 1990s or into Milton Friedman’s own 1998 memoirs, we may have expected him to at least turn to his co-author and Columbia colleague, Jagdish Bhagwati himself, and ask, “Master, have you heard of this fellow Subroto Roy by any chance?”

 

Jagdish would have had to say yes, since not only had he received a copy of the proofs of my 1984 IEA work Pricing, Planning and Politics: A Study of Economic Distortions in India, he was kind enough to write in a letter dated 15 May 1984 that I had

 

“done an excellent job of setting out the problems afflicting our economic policies, unfortunately government-made problems!” 

 

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Also Jagdish may or may not have remembered our only meeting, when he and I had had a long conversation on the sofas in the foyer of the IMF in Washington when I was a consultant there in 1993 and he had come to meet someone; he was surprisingly knowledgeable about my personal 1990 matter in the Supreme Court of India which astonished me until he told me his brother the Supreme Court judge had mentioned the case to him!

 

Now my 1984 work was amply scientific and scholarly in fully crediting a large number of works in the necessary bibliography, including Bhagwati’s important work with his co-authors.  Specifically, Footnote 1 listed the literature saying:

 

“The early studies notably include: B. R. Shenoy, `A note of dissent’, Papers relating to the formulation of the Second Five-Year Plan, Government of India Planning Commission, Delhi, 1955; Indian Planning and Economic Development, Asia Publishing, Bombay, 1963, especially pp. 17-53; P. T. Bauer, Indian Economic Policy and Development, George Allen & Unwin, London, 1961; M. Friedman, unpublished memorandum to the Government of India, November 1955 (referred to in Bauer, op. cit., p. 59 ff.); and, some years later, Sudha Shenoy, India : Progress or Poverty?, Research Monograph 27, Institute of Economic Affairs, London, 1971. Some of the most relevant contemporary studies are: B. Balassa, `Reforming the system of incentives in World Development, 3 (1975), pp. 365-82; `Export incentives and export performance in developing countries: a comparative analysis’, Weltwirtschaftliches Archiv, 114 (1978), pp. 24-61; The process of industrial development and alternative development strategies, Essays in International Finance No. 141, Princeton University, 1980; J. N. Bhagwati & P. Desai, India: Planning for Industrialisation, OECD, Paris : Oxford University Press, 1970; `Socialism and Indian Economic Policy’, World Development, 3 (1975), pp. 213-21; J. N. Bhagwati & T. N. Srinivasan, Foreign-trade Regimes and Economic Development: India, National Bureau of Economic Research, New York, 1975; Anne O. Krueger, `Indian planning experience’, in T. Morgan et al. (eds.), Readings in Economic Development, Wadsworth, California, 1963, pp. 403-20; `The political economy of the rent-seeking society, American Economic Review, 64 (June 1974); The Benefits and Costs of Import-Substitution in India: a Microeconomic Study, University of Minnesota Press, Minneapolis, 1975; Growth, distortions and patterns of trade among many countries, Studies in International Finance, Princeton University, 1977; Uma Lele, Food grain marketing in India : private performance and public policy, Cornell University Press, Ithaca, 1971; T. W. Schultz (ed.), Distortions in agricultural incentives, Indiana University Press, Bloomington, 1978; V. Sukhatme, “The utilization of high-yielding rice and wheat varieties in India: an economic assessment”, University of Chicago PhD thesis, 1977….”

 

There were two specific references to Bhagwati’s work with Srinivasan:

 

“Jagdish Bhagwati and T. N. Srinivasan put it as follows : `The allocation of foreign exchange among alternative claimants and users in a direct control system . . .would presumably be with reference to a well-defined set of principles and criteria based on a system of priorities. In point of fact, however, there seem to have been few such criteria, if any, followed in practice.’”

 

and

 

“But as Bhagwati and Srinivasan report, `. . . the sheer weight of numbers made any meaningful listing of priorities extremely difficult. The problem was Orwellian: all industries had priority and how was each sponsoring authority to argue that some industries had more priority than others? It is not surprising, therefore, that the agencies involved in determining allocations by industry fell back on vague notions of “fairness”, implying pro rata allocations with reference to capacity installed or employment, or shares defined by past import allocations or similar rules of thumb’”

 

and one to Bhagwati and Desai:

 

“The best descriptions of Indian industrial policy are still to be found in Bhagwati and Desai (1970)…”

 

Professors Bhagwati and Panagriya have not apparently referred to anything beyond these joint works of Bhagwati’s dated 1970 with Padma Desai and 1975 with TN Srinivasan.  They have not claimed Bhagwati did anything by way of either publication or political activity in relation to India’s economic policy between May 1984, when he read my soon-to-be-published-work and found I had

 

done an excellent job of setting out the problems afflicting our economic policies, unfortunately government-made problems”,

 

and September 1990 when I gave Rajiv the University of Hawaii perestroika-for-India project results developed since 1986, which came to politically spark the 1991 reform in the Congress’s highest echelons from months before Rajiv’s assassination.   

 

There may have been no such claim made by Bhagwati and Panagariya because there may be no such evidence.  Between 1984 and 1990,  Professor Bhagwati’s research interests were away from Indian economic policy while his work on India through 1970 and 1975 had been fully and reasonably accounted for as of 1984 by myself.

 

What is left remaining is Bhagwati’s statement :

 

“When finance minister Manmohan Singh was in New York in 1992, he had a lunch for many big CEOs whom he was trying to seduce to come to India. He also invited me and my wife, Padma Desai, to the lunch. As we came in, the FM introduced us to the invitees and said: ‘These friends of mine wrote almost a quarter century ago [India: Planning for Industrialisation was published in 1970 by Oxford] recommending all the reforms we are now undertaking. If we had accepted the advice then, we would not be having this lunch as you would already be in India’

 

Now this light self-deprecating reference by Manmohan at an investors’ lunch in New York “for many big CEOs” was an evident attempt at political humour written by his speech-writer.   It was clearly, on its face, not serious history.   If we test it as serious history, it falls flat so we may only hope Manmohan Singh, unlike Jagdish Bhagwati, has not himself come to believe his own reported joke as anything more than that.  

 

The Bhagwati-Desai volume being referred to was developed from 1966-1970.  India saw critical economic and political events  in 1969, in 1970, in 1971, in 1972, in 1975, in 1977, etc.

 

Those were precisely years during which Manmohan Singh himself moved from being an academic to becoming a Government of India official, working first for MG Kaul, ICS, and then in 1971 coming to the attention of  PN Haksar, Indira Gandhi’s most powerful bureaucrat between 1967 and 1974: Haksar himself was Manmohan Singh’s acknowledged mentor in the Government, as Manmohan told Mark Tully in an interview.  

 

After Manmohan visited our Paris home in 1973 to talk to me about economics, my father — who had been himself sent to the Paris Embassy by Haksar in preparation for Indira Gandhi’s visit in November 1971 before the Bangladesh war —

 

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had told me Manmohan was very highly regarded in government circles with economics degrees from both Cambridge and Oxford, and my father had added, to my surprise, what was probably a Haksarian governmental view that Manmohan was expected to be India’s Prime Minister some day.  That was 1973.

 

PN Haksar had been the archetypal Nehruvian Delhi intellectual of a certain era, being both a fierce nationalist and a fierce pro-USSR leftist from long before Independence.  I met him once on 23 March 1991, on the lawns of 10 Jan Path at the launch of General V Krishna Rao’s book on Indian defence which Rajiv was releasing, and Haksar gave a speech to introduce Rajiv (as if Rajiv needed introduction on the lawns of his own residence);  Haksar was in poor health but he seemed completely delighted to be back in favour with Rajiv,  after years of having been treated badly by Indira and her younger son.  

 

 Had Manmohan Singh in the early 1970s gone to Haksar — the architect of the nationalisation of India’s banking going on right then — and said “Sir, this OECD study by my friend Bhagwati and his wife says we should be liberalising foreign trade and domestic industry”, Haksar would have been astonished and sent him packing.  

 

There was a war on, plus a massive problem of 10 million refugees, a new country to support called Bangladesh, a railway strike, a bad crop, repressed inflation, shortages, and heaven knows what more, besides Nixon having backed Yahya Khan, Tikka Khan et al. 

 

 

nixon-note

Then after Bangladesh and the railway strike etc, came the rise of the politically odious younger son of Indira Gandhi and his friends (at least one of whom is today Sonia Gandhi’s gatekeeper) followed by the internal political Emergency, the grave foreign-fueled problem of Sikh separatism and its control, the assassination of Indira Gandhi by her own Sikh bodyguards, and the Rajiv Gandhi years as Prime Minister. 

 

Certainly it was Rajiv’s arrival in office and Benazir’s initial return to Pakistan, along with the rise of Michael Gorbachev in the changing USSR, that inspired me in far away Hawaii in 1986 to design with Ted James the perestroika-projects for India and Pakistan which led to our two volumes, and which, thanks to Siddhartha Shankar Ray, came to reach Rajiv Gandhi in Opposition in September 1990 as he sat somewhat forlornly at 10 Jan Path after losing office. “There is a tide in the affairs of men, Which taken at the flood, leads on to fortune….

 

My friend and collaborator Ted James died of cancer in Manila in May 2010; earlier that year he came to say publicly

 

“Seldom are significant reforms imposed successfully by international bureaucracies. Most often they are the result of indigenous actors motivated by domestic imperatives. I believe this was the case in India in 1991. It may have been fortuitous that Dr. Roy gained an audience with a receptive Rajiv Gandhi in 1990 but it was not luck that he was prepared with a well-thought out program; this arose from years of careful thought and debate on the matter.”

 

Changing the direction of a ship of state is very hard, knowing in which direction it should change and to what degree is even harder; it has rarely been something that can be done without random shocks arising let aside the power of vested interests. Had Rajiv Gandhi lived to form a new Government, I have little doubt I would have led the reform that I had chalked out for him and that he had approved of;  Sonia Gandhi would have remained the housewife, mother and grandmother that she had preferred to be and not been made into the Queen of India by the Congress Party; Manmohan Singh had left India in 1987 for the Nyerere project and it had been rumoured at the time that had been slightly to do with him protesting, to the extent that he ever has protested anything, the anti-Sikh pogrom that some of Rajiv’s friends had apparently unleashed after Indira’s killing; he returned in November 1990, joined Chandrashekhar in December 1990, left Chandrashekhar in March 1991 when elections were announced and was biding his time as head of the UGC; had Rajiv Gandhi lived, Manmohan Singh would have had a governor’s career path, becoming the governor of one state after another; he would not have been brought into the economic reform process which he had had nothing to do with originating; and finally Pranab Mukherjee, who left the Congress Party and formed his own when Rajiv took over, would have been likely rehabilitated slowly but would not have come to control the working of the party as he did. I said in my Lok Sabha TV interview on 5 9 December 2012 that there have been many microeconomic improvements arising from technological progress in the last 22 years but the macroeconomic and monetary situation is grim, because at root the fiscal situation remains incoherent and confused. I do not see anyone in Manmohan Singh’s entourage among all his many acolytes and flatterers and apologists who is able to get to these root problems.  We shall address these issues in Part II.

 

What Manmohan Singh said in self-deprecating humour at an investors’ lunch in New York in 1992 is hardly serious history as Jagdish Bhagwati has seemed to wish it to be.  Besides, it would have been unlike Manmohan,  being the devoted student of Joan Robinson and Nicholas Kaldor as he told Mark Tully,  to have taken such a liberalising initiative at all.  Furthermore, the 1969 American Economic Review published asurvey of Indian economic policy authored by his Delhi University colleagues Jagdish Bhagwati and Sukhamoy Chakravarty which made little mention of his work, and it would have been unreasonable to expect him to have been won over greatly by theirs. Perhaps there is a generous review from the 1970s by Manmohan Singh of the Bhagwati-Desai volume hidden somewhere but if so we should be told where it is.  A list of Manmohan Singh’s publications as an economist do not seem easily available anywhere.  

 

Lastly and perhaps most decisively, the 1970 Bhagwati-Desai volume, excellent study that it was, was hardly the first of its genre by way of liberal criticism of modern Indian economic policy!   Bhagwati declared in his 2010 speech to the Lok Sabha

 

“This policy framework had been questioned, and its total overhaul advocated, by me and Padma Desai in writings through the late 1960s…”

 

But why has Bhagwati been forever silent about the equally if not more forceful and fundamental criticism of “the policy framework”, and advocacy of its “total overhaul”, by scholars in the 1950s, a decade and more earlier than him, when he and Manmohan and Amartya were still students?  Specifically, by BR Shenoy, Milton Friedman, and Peter Bauer?   The relevant bibliography from the mid 1950s is given in Footnote 1 of my 1984 work. 

 

 


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baueronshenoy

Peter Tamas Bauer (1915-2002) played a vital role in all this as had he himself not brought the Friedman 1955 document to my attention I would not have known of it.

 

 

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As undergraduates at the LSE, we had been petrified of him and I never spoke to him while there, having believed the propaganda that floated around about him; then while a Research Student at Cambridge, I happened to be a speaker with him at a conference at Oxford; he made me sit next to him at a meal and told me for the first time about Milton Friedman’s 1955 memorandum to the Government of India which had been suppressed.  I am privileged to say Peter from then on became a friend, and wrote, at my request, what became I am sure the kiss of death for me at the World Bank of 1982:

 

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Later he may have been responsible for the London Times writing its lead editorial of 29 May 1984 on my work.

 

Now Milton had sent me in 1984, besides the original of his November 1955 memorandum to the Government of India, a confidential 1956 document also which seemed to have been written for US Government consumption.  I did not publish this in Hawaii in 1989 as I was having difficulty enough publishing the 1955 memorandum.  I gave it to be published on the Internet some years ago, and after Milton’s passing, I had it published in The Statesman  on the same day as my obituary of him. 

 

It makes fascinating reading, especially about Mahalanobis and Shenoy, of how what Bhagwati wishes to call “the policy framework” that, he claims, he and Desai called for a “total overhaul” of, came to be what it was in the decade earlier when he and Amartya and Manmohan were still students. 

 

Friedman’s 1956 document said

 

“I met PC Mahalanobis in 1946 and again at a meeting of the International Statistical Institute in September 1947, and I know him well by reputation. He was absent during most of my stay in New Delhi, but I met him at a meeting of the Indian Planning Commission, of which he is one of the strongest and most able members.   Mahalanobis began as a mathematician and is a very able one. Able mathematicians are usually recognized for their ability at a relatively early age. Realizing their own ability as they do and working in a field of absolutes, tends, in my opinion, to make them dangerous when they apply themselves to economic planning. They produce specific and detailed plans in which they have confidence, without perhaps realizing that economic planning is not the absolute science that mathematics is. This general characteristic of mathematicians is true of Mahalanobis but in spite of the tendency he is willing to discuss a problem and listen to a different point of view. Once his decision is reached, however, he has great confidence in it. Mahalanobis was unquestionably extremely influential in drafting the Indian five-year plan. There were four key steps in the plan. The first was the so-called “Plan Frame” drafted by Mahalanobis himself. The second was a tentative plan based on the “Plan Frame”. The third step was a report by a committee of economists on the first two steps, and the fourth was a minority report by BR Shenoy on the economists’ report. The economists had no intention of drafting a definitive proposal but merely meant to comment on certain aspects of the first two steps. Shenoy’s minority report, however, had the effect of making the economists’ report official. The scheme of the Five Year Plan attributed to Mahalanobis faces two problems; one, that India needs heavy industry for economic development; and two, that development of heavy industry uses up large amounts of capital while providing only small employment.  Based on these facts, Mahalanobis proposed to concentrate on heavy industry development on the one hand and to subsidize the hand production cottage industries on the other. The latter course would discriminate against the smaller manufacturers. In my opinion, the plan wastes both capital and labour and the Indians get only the worst of both efforts. If left to their own devices under a free enterprise system I believe the Indians would gravitate naturally towards the production of such items as bicycles, sewing machines, and radios. This trend is already apparent without any subsidy. The Indian cottage industry is already cloaked in the same popular sort of mist as is rural life in the US. There is an idea in both places that this life is typical and the backbone of their respective countries. Politically, the Indian cottage industry problem is akin to the American farm problem. Mohandas Gandhi was a proponent of strengthening the cottage industry as a weapon against the British. This reason is now gone but the emotions engendered by Gandhi remain. Any move to strengthen the cottage industry has great political appeal and thus, Mahalanobis’ plan and its pseudo-scientific support for the industry also has great political appeal.  I found many supporters for the heavy industry phase of the Plan but almost no one (among the technical Civil Servants) who really believes in the cottage industry aspects, aside from their political appeal. In its initial form, the plan was very large and ambitious with optimistic estimates. My impression is that there is a substantial trend away from this approach, however, and an attempt to cut down. The development of heavy industry has slowed except for steel and iron. I believe that the proposed development of a synthetic petroleum plant has been dropped and probably wisely so. In addition, I believe that the proposed five year plan may be extended to six years. Other than his work on the plan, I am uncertain of Mahalanobis’ influence. The gossip is that he has Nehru’s ear and potentially he could be very influential, simply because of his intellectual ability and powers of persuasion. The question that occurs to me is how much difference Mahalanobis’ plan makes. The plan does not seem the important thing to me. I believe that the new drive and enthusiasm of the Indian nation will surmount any plan, good or bad. Then too, I feel a wide diversity in what is said and what is done. I believe that much of Nehru’s socialistic talk is simply that, just talk. Nehru has been trying to undermine the Socialist Party by this means and apparently the Congress Party’s adoption of a socialistic idea for industry has been successful in this respect.  One gets the impression, depending on whom one talks with, either that the Government runs business, or that two or three large businesses run the government. All that appears publicly indicates that the first is true, but a case can also be made for the latter interpretation. Favour and harassment are counterparts in the Indian economic scheme. There is no significant impairment of the willingness of Indian capitalists to invest in their industries, except in the specific industries where nationalization has been announced, but they are not always willing to invest and take the risks inherent in the free enterprise system. They want the Government to support their investment and when it refuses they back out and cry “Socialism”..”

 

I look forward to seeing a fundamental classical liberal critique from India’s distinguished American friends at Columbia University, Professors Jagdish Bhagwati and Padma Desai and Arvind Panagariya, if and when such a critique arises,  of the  “policy framework” in India as that evolved from the mid 1950s to become what exists across India in 2013 today.  Specifically:  Where is the criticism from Bhagwati of Mahalanobis and friends?  And where is Bhagwati’s defence of Shenoy, leave aside of Milton Friedman or Peter Bauer?   They seem not to exist. The most we get is a footnote again without the civility of any references, in the otherwise cogent 1975 Desai-Bhagwati paper “Socialism and Indian Economic Policy” alleging 

 

” Of these three types of impact of the Soviet example, the Plan-formulation approach was to be enthusiastically received by most commentators and, indeed, to lead to demands on the part of aid agencies for similar efforts by other developing countries. However, the shift to heavy industry was seen as a definite mistake by economic opinion of the Chicago school variety, reflecting their basic unfamiliarity with the structural models of growth and development planning of the Feldman-Mahalanobis variety-an ignorance which probably still persists. The detailed regulation was not quite noticed at the time, except by conservative commentators whose position however was extreme and precluded governmental planning of industrial investments on any scale.”

 

Desai and Bhagwati naturally found no apparent desire to locate any possible scientific truth or reasonableness among

 

“conservative commentators”

 

nor among the unnamed and undescribed

 

“economic opinion of the Chicago school variety”.   

 

Could Desai and Bhagwati have done anything different after all, even when talking about India to an American audience, without being at risk of losing their East Coast Limousine Liberal credentials?  Bhagwati used to routinely declare his “socialist” credentials, and even the other day on Indian TV emphatically declared he was not a “conservative” and scornfully dismissed “Thatcher and Reagan” for their “trickle down economics”…

 

Jagdish Bhagwati has evidently wanted to have his cake and eat it too…

 


 

4.    Amartya Sen’s Half-Baked Communism: “To each according to his need”? 

 

If I have been candid or harsh in my assessments of Jagdish Bhagwati and Manmohan Singh as they relate to my personal experience with the change of direction in Indian economic policy originating in 1990-1991, I am afraid I must be equally so with Bhagwati’s current opponent in debate, Amartya Sen. Certainly I have found the current spat between Bhagwati and Sen over India’s political economy to be dismal, unscholarly, unscientific and misleading (or off-base) except for it having allowed a burst of domestic policy-discussion in circumstances when India needs it especially much.  

 

None of this criticism is personal but based on objective experience and the record.  My criticism of Professor Bhagwati and Dr Manmohan Singh does not diminish in the slightest my high personal regard for both of them.

 

Similarly, Amartya Sen and I go back, momentarily, to Hindustan Park in 1964 when there was a faint connection as family friends from World War II  (as Naren Deb and Manindranath Roy were friends and neighbours, and we still have the signed copy of a book gifted by the former to the latter), and then he later knew me cursorily when I was an undergraduate at LSE and he was already a famous professor, and I greatly enjoyed his excellent lectures at the LSE on his fine book On Economic Inequality, and a few years later he wrote in tangential support of me at Cambridge for which he was thanked in the preface to my 1989 Philosophy of Economics — even though that book of mine also contained in its Chapter 10 the decisive criticism of his main contribution until that time to what used to be called “social choice theory”. Amartya Sen had also written some splendid handwritten letters, a few pages of which remain with me, which puzzled me at the time due to his expressing his aversion to what is normally called ‘price theory’, namely the Marshallian and/or Walrasian theory of value. 

 

Professor Sen and I met briefly in 1978, and then again in 2006 when I was asked to talk to him in our philosophical conversation which came to be published nicely.  In 2006 I told him of my experience with Rajiv Gandhi in initiating what became the 1991 reform on the basis of my giving Rajiv the results of the Hawaii project,  and Amartya was kind enough to say that he knew I had been arguing all this “very early on”, referring presumably to the 1984 London Times editorial which he would have seen in his Oxford days before coming to Harvard.

 

This personal regard on my part or personal affection on his part aside, I have been appalled to find Professor Sen not taking moral and intellectual responsibility for and instead disclaiming paternity of the whole so-called “Food Security” policy which Sonia Gandhi has been prevailed upon over the years by him and his acolytes and friends and admirers to adopt, and she in her ignorance of all political economy and governance has now wished to impose upon the Congress Party and India as a whole:

 

“Questioner: You are being called the creator of the Food Security Bill.

Amartya Sen: Yes, I don’t know why. That is indeed a paternity suit I’m currently fighting. People are accusing me of being the father”.

 

Amartya Sen has repeatedly over the years gone on Indian prime-time television and declared things like

 

If you don’t agree there’s hunger in the world, there’s something morally wrong with you”

 

besides over the decades publishing titles like Poverty and Famines: An Essay on Entitlement and Deprivation, Hunger and Public Action, The Political Economy of Hunger etc and ceaselessly using his immense power with the media, with book publishing houses, with US academic departments and the world development economics business,  to promote his own and his acolytes’ opinions around the world, no matter how ill-considered or incoherent these may be.   A passage from his latest book with Jean Drèze reportedly reads

 

“If development is about the expansion of freedom, it has to embrace the removal of poverty as well as paying attention to ecology as integral parts of a unified concern, aimed ultimately at the security and advancement of human freedom. Indeed, important components of human freedoms — and crucial ingredients of our quality of life — are thoroughly dependent on the integrity of the environment, involving the air we breathe, the water we drink, and the epidemiological surroundings in which we live….”

 

Had such a passage reached me in an undergraduate essay, I would have considered it incoherent waffle, and I am afraid I cannot see why merely because it is authored  by an eminence at Harvard and his co-author, the evaluation should be any different.   I am reminded of my encounter in 1976 with Joan Robinson, the great tutor in 1950s Cambridge of Amartya and Manmohan:  “Joan Robinson cornered me once and took me into the office she shared with EAG… She came at me for an hour or so wishing to supervise me, I kept declining politely… saying I was with Frank Hahn and wished to work on money… “What does Frankie know about India?” she said… I said I did not know but he did know about monetary theory and that was what I needed for India;  I also said I did not think much about the Indian Marxists she had supervised… and mentioned a prominent name… she said about him, “Yes most of what he does can go straight into the dustbin”…”  The Indian Marxist whom I had referred to in this conversation with Joan was not Amartya but someone else much younger, yet her candid “can go straight into the dustbin” still applies to all incoherent waffle, whomsoever may produce it.

 

Indeed, Amartya Sen, if anyone, really should get down to writing his memoirs, and candidly so in order to explain his own thinking and deeds over the decades to himself and to the world in order that needless confusions do not arise.  

 

Else it becomes impossible to explain how someone who was said to be proud to have been a Communist student on the run from the police in West Bengal, who was Joan Robinson’s star pupil at a time she was extolling Maoist China and who has seemingly nurtured a deep lifelong fascination and affection for Communist China despite all its misdeeds, who was feted by the Communist regime of West Bengal after winning the Bank of Sweden Prize (on the same day that same regime had tossed into jail one unfortunate young Mr Khemkha merely for having been rude to its leaders on the Internet), and who seemed to share some of those winnings on social causes like primary education at the behest of the Communist regime’s ministers, etc, how someone with that noble comradely leftist personal history as an economist allows a flattering interviewer with a Harvard connection to describe him in Business Standard of 25 July 2013  as having been all along really a

 

“neoclassical economist”

 

who also happens to be

 

“the greatest living scholar of the original philosopher of the free market, Adam Smith”

 

Amartya Sen a neoclassical economist and a great scholar of Adam Smith?  It is hilarious to suppose so. The question arises, Does Sen, having published about Adam Smith recently in a few newspapers and leftist periodicals, agree with such a description by his flattering admirer from Harvard at Business Standard?  “Neoclassical” economics originated with men like Jevons, Menger, Walras, Pareto, Marshall, Wicksell, and was marked by the theory of value being explained by a demand-side too, and not, like classical economics, merely by the cost of production alone on the supply side.  Indeed a striking thing about the list below published by the Scandinavian Journal of Economics of Amartya’s books following his 1998 Bank of Sweden Prize

 

1467-9442.00152_p1is how consistently these works display his avoidance of all neoclassical economics, and the absence of all of what is normally called ‘price theory’, namely the Marshallian and/or Walrasian theory of value.   No “neoclassical economics” anywhere here  for sure!  

 

It would be fair enough if Professor Sen says he is hardly responsible for an admirer’s ignorant misdescription of his work — except the question still arises why he has himself also evidently misdescribed his own work!  For example, in his 13 July 2013 letter to The Economist in response to the criticism of Jagdish Bhagwati and Arvind Panagariya, he says he had always been keenly interested in

 

“the importance of economic growth as a means— not an end”

 

and that this

 

“has been one of the themes even in my earliest writings (including “Choice of Techniques” in 1960 and “Growth Economics” in 1970)”.

 

This is a very peculiar opinion indeed to have been expressed by Professor Sen about his own work because the 1970 volume Growth Economics listed above among his books hardly can be said at all to be one of his own “earliest writings” as he now describes it to have been!

 

What had happened back then was that Sen, as someone considered a brilliant or promising young Indian economist at the time, had been asked by the editors of the famous Penguin Modern Economics Readings series to edit the specific issue  devoted to growth-theory — a compendium of classic already-published essays including those of Roy Harrod, Evsey Domar, Robert Solow and many others, to which young Amartya was given a chance to write an editorial Introduction.   Every economist familiar with that literature knows too that the growth-theory contained in that volume and others was considered highly abstract and notoriously divorced from actual historical processes of economic growth in different countries.  Everyone also knew that the individual editors in that famous Penguin Modern Economics Series were of relative unimportance as they did not commission new papers but merely collected classics already published and wrote an introduction.

 

This is significant presently because neither Professor Sen nor Professor Bhagwati may be objectively considered on the evidence of his life’s work as an economist to have been a major scholar of economic growth, either in theory or in historical practice.  As of December 1989,  Amartya Sen himself described his own interests to the American Economic Association as

 

“social choice theory, welfare economics, economic development”

 

and Jagdish Bhagwati described his interests as

 

“theory of international trade and policy, economic development”. 

 

Neither Sen nor Bhagwati mentioned growth economics or economic history or even general economic theory, microeconomics, macroeconomics, monetary economics, public finance, etc.  Furthermore, Sen saying in his letter to The Economist  that he has been always interested in economic growth seems to be baseless in light of the list of his books above, other than the Penguin compendium already discussed.

 

Incidentally in the same American Economic Association volume of 1989, Padma Desai had described her interests as

 

“Soviet economy and comparative economic systems”; 

 

Arvind Panagariya had described his interests as

 

“economies of scale and trade; smuggling; parallel markets in planned economies”;

 

and one Suby Roy described his interests as

 

“foundations of monetary economics”.

 

Reflecting on Amartya Sen’s works over the 40 year period that I have known them

 

[and again, my personal copies of his books and those of Bhagwati and Desai, were all in my professorial office at IIT Kharagpur when I was attacked by a corrupt gang there in 2003; and IIT have been under a High Court order to return them but have not done so],

 

I wonder in fact if it might be fairly said that Sen has been on his own subjective journey over the decades around the world seeking to reinvent economics and political economy from scratch, and inventing his own terminology like “capabilities”, “functionings” and yes “entitlements” etc. to help him do so, while trying to assiduously avoid mention of canonical works of  modern world economics like Marshall’s Principles, Hicks’s Value and Capital, Debreu’s Theory of Value, or Arrow and Hahn’s General Competitive Analysis, all defining the central neoclassical tradition of the modern theory of value.  

 

But no contemporary science, economics and political economy included, is open to be re-invented from scratch, and what Amartya Sen has ended up doing instead is seeming to be continually trying to reinvent the wheel, possibly without having had the self-knowledge to realise this.  Wittgenstein once made a paradoxical statement that one may know another’s mind better than one knows one’s own…  

Here is a current example.  Professor Sen says

 

“First, unlike the process of development in Japan, China, Korea and other countries, which pursued what Jean Drèze and I have called “Asian economic development” in our book, India has not had enough focus on public spending on school education and basic healthcare, which these other countries have had….”

 

Does Sen really believes believe he and Drèze  have now in 2013 discovered and christened an economic phenomenon named “Asian economic development”?  Everyone, from Japan and Bangkok and Manila, to Hawaii and Stanford to the World Bank’s East Asia department, including  especially my Hawaii colleague Ted James, and many many others including especially Gerald M Meier at Stanford, were was publishing about all that every month — in the mid 1980s!  In fact, our project on India and Pakistan arose in the 1980s from precisely such a Hawaiian wave!  Everyone knows all that from back then or even earlier when the Japanese were talking about the “flying geese” model.  (And, incidentally,  Communist China did not at the time belong in the list.)  Where was Amartya Sen in the mid 1980s when all that was happening?  Jean Drèze was still a student perhaps. Is Professor Sen seeking to reinvent the wheel again with “Asian Economic Development” being claimed to be invented in 2013 by him and Drèze now? Oh please!  That just won’t fly either!

 

A second example may be taken from the year before Professor Sen was awarded the Bank of Sweden Prize when he gave a lecture on “human capital” theory which was published as a survey titled “Human Capital and Human Capability” in World Development 1997 Vol. 25, No. 12, 

 

Can you see any reference in this 1997 survey to TW Schultz’s 1960 American Economic Association Presidential Address or to Schultz’s classic 1964 book Transforming Traditional Agriculture or to his 1979 Bank of Sweden Prize address?  I could not.   If one did not know better, one might have thought from Professor Sen’s 1997 survey that there was nothing done worth talking about on the subject of “human capital” from the time of Adam Smith and David Hume until Amartya Sen finally came to the subject himself. 

 

Thirdly,  one is told by Sen’s admirer and collaborator, Professor James Foster of George Washington University, that what  Sen means by his notion of

 

“effective freedom”

 

is that this is something

 

“enhanced when a marginally nourished family now has the capability to be sufficiently nourished due to public action”…

 

Are Amartya and his acolytes claiming he has invented or reinvented welfare economics ab initio?   That before Amartya Sen, we did not know the importance of the able-bodied members of a community assisting those who are not able-bodied? 

 

Where have they been? Amartya needed merely to have read Marshall’s Principles evenslightly to find Marshall himself, the master of Maynard Keynes and all of Cambridge and modern world economics, declaring without any equivocation at the very start 

 

“….the study of the causes of poverty is the study of the causes of the degradation of a large part of mankind…”

 

But Marshall was interested in study, serious study, of poverty and its causes and amelioration, which is not something as easy or trivial as pontification on modern television.  My 1984 article “Considerations on Utility, Benevolence and Taxation” which also became a chapter of my 1989 Philosophy of Economics surveyed some of Marshall’s opinion.

 

“From each according to his ability, to each according to his need” was a utopian slogan around 1875 from Karl Marx, which generations of passionate undergraduates have found impressive. Amartya Sen deserves to tell us squarely about his engagement with Marx or Marxist thought from his earliest days until now.  His commitment in recent decades to democracy and the open and free society is clear;  but has he also at the same time all along been committed to a kind of half-baked communist utopia as represented by Marx’s 1875 slogan? 

 

“To each according to his need” sounds to be the underlying premise that is seeing practical manifestation in the Sonia Congress’s imposition of a so-called “right to food”; “from each according to his ability” is its flip side in the so-called “rural employment guarantee”.  Leave aside the limitless resource-allocation and incentive and public finance problems created by such naive ideas being made into government policy, there is a grave and fundamental issue that Amartya and other leftists have been too blinkered to see:

 

Do they suppose the organised business classes have been weakly cooperative and will just allow such massive redistribution to occur without getting the Indian political system to pay them off as well?   And how do the organised business classes get paid off?  By their getting to take the land of the inhabitants of rural India.   And land in an environment of a debauching of money and other paper assets is as good as gold.

 

So the peasants will lose their land to the government’s businessman friends on the one hand while purportedly getting “guaranteed” employment and food from the government’s bureaucrats on the other!  A landless, asset-less slave population, free to join the industrial proletariat! Is that what Amartya wants to see in India?  It may become what results within a few decades from his and his acolytes’ words and deeds. 

 

Rajiv Gandhi once gave me his private phone numbers at 10 Jan Path.  I used them back in January 1991 during the Gulf war.  But I cannot do so now as Rajiv is gone.  Amartya can.  Let him phone Sonia and prevail upon her to put the brakes on the wild food and employment schemes he and his friends have persuaded her about until he reads and reflects upon what I said in January 2007 in “On Land-Grabbing” and in my July 2007 open letter to him, reproduced below:

 

“At a business meet on 12 January 2005, Dr Manmohan Singh showered fulsome praise on Buddhadeb Bhattacharjee as “dynamic”, “the Nation’s Best Chief Minister”, whose “wit and wisdom”, “qualities of head and heart”, “courage of conviction and passionate commitment to the cause of the working people of India” he admired, saying “with Buddhadeb Babu at the helm of affairs it appears Bengal is once again forging ahead… If today there is a meeting of minds between Delhi and Kolkata, it is because the ideas that I and Buddhadebji represent have captured the minds of the people of India. This is the idea of growth with equity and social justice, the idea that economic liberalization and modernization have to be mindful of the needs of the poor and the marginalized.”…. Dr Singh returned to the “needs of the poor and the marginalized” at another business meet on 8 January 2007 promising to “unveil a new Rehabilitation Policy in three months to increase the pace of industrialisation” which would be “more progressive, humane and conducive to the long-term welfare of all stakeholders”, while his businessman host pointedly stated about Singur “land for industry must be made available to move the Indian manufacturing sector ahead”. The “meeting of minds between Delhi and Kolkata” seems to be that agriculture allegedly has become a relatively backward slow-growing sector deserving to yield in the purported larger national interest to industry and services: what the PM means by “long-term welfare of all stakeholders” is the same as the new CPI-M party-line that the sons of farmers should not remain farmers (but become automobile technicians or IT workers or restaurant waiters instead).   It is a political viewpoint coinciding with interests of organised capital and industrial labour in India today, as represented by business lobbies like CII, FICCI and Assocham on one hand, and unions like CITU and INTUC on the other. Business Standard succinctly (and ominously) advocated this point of view in its lead editorial of 9 January as follows: “it has to be recognised that the world over capitalism has progressed only with the landed becoming landless and getting absorbed in the industrial/service sector labour force ~ indeed it is obvious that if people don’t get off the land, their incomes will rise only slowly”.  Land is the first and ultimate means of production, and the attack of the powerful on land-holdings or land-rights of the unorganised or powerless has been a worldwide phenomenon ~ across both capitalism and communism.  In the mid-19th Century, white North America decimated hundreds of thousands of natives in the most gargantuan land-grab of history. Defeated, Chief Red Cloud of the Sioux spoke in 1868 for the Apache, Navajo, Comanche, Cheyenne, Iroquois and hundreds of other tribes: “They made us many promises, more than I can remember, but they never kept any except one: they promised to take our land, and they took it.”  Half a century later, while the collapse of grain prices contributed to the Great Depression and pauperisation of thousands of small farmers in capitalist America in the same lands that had been taken from the native tribes, Stalin’s Russia embarked on the most infamous state-sponsored land-grab in modern history: “The mass collectivisation of Soviet agriculture (was) probably the most warlike operation ever conducted by a state against its own citizens…. Hundreds of thousands and finally millions of peasants… were deported… desperate revolts in the villages were bloodily suppressed by the army and police, and the country sank into chaos, starvation and misery… The object of destroying the peasants’ independence…was to create a population of slaves, the benefit of whose labour would accrue to industry. The immediate effect was to reduce Soviet agriculture to a state of decline from which it has not yet recovered… The destruction of the Soviet peasantry, who formed three quarters of the population, was not only an economic but a moral disaster for the entire country. Tens of millions were driven into semi-servitude, and millions more were employed as executants…” (Kolakowski, Main Currents of Marxism).   Why did Stalin destroy the peasants? Lenin’s wishful “alliance between the proletariat and the peasantry” in reality could lead only to the peasants being pauperised into proletarians. At least five million peasants died and (Stalin told Churchill at Yalta) another ten million in the resultant famine of 1932-1933. “Certainly it involved a struggle ~ but chiefly one between urban Communists and villagers… it enabled the regime to obtain much of the capital desired for industrialization from the defeated village… it was the decisive step in the building of Soviet totalitarianism, for it imposed on the majority of the people a subjection which only force could maintain” (Treadgold, 20th Century Russia).  Mr Bhattacharjee’s CPI-M is fond of extolling Chinese communism, and the current New Delhi establishment have made Beijing and Shanghai holiday destinations of choice. Dr Singh’s Government has been eager to create hundreds of “Special Economic Zones” run by organised capital and unionised labour, and economically privileged by the State. In fact, the Singur and Nandigram experiences of police sealing off villages where protests occur are modelled on creation of “Special Economic Zones” in China in recent years.  For example, Chinese police on 6 December 2005 cracked down on farmers and fishermen in the seaside village of Dongzhou, 125 miles North East of Hong Kong. Thousands of Dongzhou villagers clashed with troops and armed police protesting confiscation of their lands and corruption among officials. The police immediately sealed off the village and arrested protesters. China’s Public Security Ministry admitted the number of riots over land had risen sharply, reaching more than seventy thousand across China in 2004; police usually suppressed peasant riots without resort to firing but in Dongzhou, police firing killed 20 protesters. Such is the reality of the “emergence” of China, a totalitarian police-state since the Communist takeover in 1949, from its period of mad tyranny until Mao’s death in 1976, followed by its ideological confusion ever since.  Modern India’s political economy today remains in the tight grip of metropolitan “Big Business” and “Big Labour”. Ordinary anonymous individual citizens ~ whether housewife, consumer, student, peasant, non-union worker or small businessman ~ have no real voice or representation in Indian politics. We have no normal conservative, liberal or social democratic party in this country, as found in West European democracies where the era of land-grabbing has long-ceased. If our polity had been normal, it would have known that economic development does not require business or government to pauperise the peasantry but instead to define and secure individual property rights and the Rule of Law, and establish proper conditions for the market economy. The Congress and BJP in Delhi and CPI-M in Kolkata would not have been able to distract attention from their macroeconomic misdeeds over the decades ~ indicated, for example, by increasing interest-expenditure paid annually on Government debt as a fraction of tax revenues… This macroeconomic rot originated with the Indira Gandhi-PN Haksar capriciousness and mismanagement, which coincided with the start of Dr Singh’s career as India’s best known economic bureaucrat….”

 

“Professor Amartya Sen, Harvard University,  Dear Professor Sen,  Everyone will be delighted that someone of your worldwide stature has joined the debate on Singur and Nandigram; The Telegraph deserves congratulations for having made it possible on July 23.  I was sorry to find though that you may have missed the wood for the trees and also some of the trees themselves. Perhaps you have relied on Government statements for the facts. But the Government party in West Bengal represents official Indian communism and has been in power for 30 years at a stretch. It may be unwise to take at face-value what they say about their own deeds on this very grave issue! Power corrupts and absolute power corrupts absolutely, and there are many candid communists who privately recognise this dismal truth about themselves. To say this is not to be praising those whom you call the “Opposition” ~ after all, Bengal’s politics has seen emasculation of the Congress as an opposition because the Congress and communists are allies in Delhi. It is the Government party that must reform itself from within sua sponte for the good of everyone in the State.  The comparisons and mentions of history you have made seem to me surprising. Bengal’s economy now or in the past has little or nothing similar to the economy of Northern England or the whole of England or Britain itself, and certainly Indian agriculture has little to do with agriculture in the new lands of Australia or North America. British economic history was marked by rapid technological innovations in manufacturing and rapid development of social and political institutions in context of being a major naval, maritime and mercantile power for centuries. Britain’s geography and history hardly ever permitted it to be an agricultural country of any importance whereas Bengal, to the contrary, has been among the most agriculturally fertile and hence densely populated regions of the world for millennia.  Om Prakash’s brilliant pioneering book The Dutch East India Company and the Economy of Bengal 1630-1720 (Princeton 1985) records all this clearly. He reports the French traveller François Bernier saying in the 1660s “Bengal abounds with every necessary of life”, and a century before him the Italian traveller Verthema saying Bengal “abounds more in grain, flesh of every kind, in great quantity of sugar, also of ginger, and of great abundance of cotton, than any country in the world”. Om Prakash says “The premier industry in the region was the textile industry comprising manufacture from cotton, silk and mixed yarns”. Bengal’s major exports were foodstuffs, textiles, raw silk, opium, sugar and saltpetre; imports notably included metals (as Montesquieu had said would always be the case).  Bengal did, as you say, have industries at the time the Europeans came but you have failed to mention these were mostly “agro-based” and, if anything, a clear indicator of our agricultural fecundity and comparative advantage. If “deindustrialization” occurred in 19th Century India, that had nothing to do with the “deindustrialization” in West Bengal from the 1960s onwards due to the influence of official communism.  You remind us Fa Hiaen left from Tamralipta which is modern day Tamluk, though he went not to China but to Ceylon. You suggest that because he did so Tamluk effectively “was greater Calcutta”. I cannot see how this can be said of the 5th Century AD when no notion of Calcutta existed. Besides, modern Tamluk at 22º18’N, 87º56’E is more than 50 miles inland from the ancient port due to land-making that has occurred at the mouth of the Hooghly. I am afraid the relevance of the mention of Fa Hiaen to today’s Singur and Nandigram has thus escaped me.  You say “In countries like Australia, the US or Canada where agriculture has prospered, only a very tiny population is involved in agriculture. Most people move out to industry. Industry has to be convenient, has to be absorbing”. Last January, a national daily published a similar view: “For India to become a developed country, the area under agriculture has to shrink, urban and industrial land development has to take place, and about 100 million workers have to move out from agriculture into industry and services. This is the only way forward for bringing prosperity to the rural population”.   Rice is indeed grown in Arkansas or Texas as it is in Bengal but there is a world of difference between the technological and geographical situation here and that in the vast, sparsely populated New World areas with mechanized farming! Like shoe-making or a hundred other crafts, agriculture can be capital-intensive or labour-intensive ~ ours is relatively labour-intensive, theirs is relatively capital-intensive. Our economy is relatively labour-abundant and capital-scarce; their economies are relatively labour-scarce and capital-abundant (and also land-abundant). Indeed, if anything, the apt comparison is with China, and you doubtless know of the horror stories and civil war conditions erupting across China in recent years as the Communist Party and their businessman friends forcibly take over the land of peasants and agricultural workers, e.g. in Dongzhou. All plans of long-distance social engineering to “move out” 40 per cent of India’s population (at 4 persons per “worker”) from the rural hinterlands must also face FA Hayek’s fundamental question in The Road to Serfdom: “Who plans whom, who directs whom, who assigns to other people their station in life, and who is to have his due allotted by others?”  Your late Harvard colleague, Robert Nozick, opened his brilliant 1974 book Anarchy, State and Utopia saying: “Individuals have rights, and there are things no person or group may do to them (without violating their rights)”. You have rightly deplored the violence seen at Singur and Nandigram. But you will agree it is a gross error to equate violence perpetrated by the Government which is supposed to be protecting all people regardless of political affiliation, and the self-defence of poor unorganised peasants seeking to protect their meagre lands and livelihoods from state-sponsored pogroms. Kitchen utensils, pitchforks or rural implements and flintlock guns can hardly match the organised firepower controlled by a modern Government.   Fortunately, India is not China and the press, media and civil institutions are not totally in the hands of the ruling party alone. In China, no amount of hue and cry among the peasants could save them from the power of organised big business and the Communist Party. In India, a handful of brave women have managed to single-handedly organise mass movements of protest which the press and media have then broadcast that has shocked the whole nation to its senses.  You rightly say the land pricing process has been faulty. Irrelevant historical prices have been averaged when the sum of discounted expected future values in an inflationary economy should have been used. Matters are even worse. “The fear of famine can itself cause famine. The people of Bengal are afraid of a famine. It was repeatedly charged that the famine (of 1943) was man-made.” That is what T. W. Schultz said in 1946 in the India Famine Emergency Committee led by Pearl Buck, concerned that the 1943 Bengal famine should not be repeated following dislocations after World War II. Of course since that time our agriculture has undergone a Green Revolution, at least in wheat if not in rice, and a White Revolution in milk and many other agricultural products. But catastrophic collapses in agricultural incentives may still occur as functioning farmland comes to be taken by government and industry from India’s peasantry using force, fraud or even means nominally sanctioned by law. If new famines come to be provoked because farmers’ incentives collapse, let future historians know where responsibility lay.  West Bengal’s real economic problems have to do with its dismal macroeconomic and fiscal position which is what Government economists should be addressing candidly. As for land, the Government’s first task remains improving grossly inadequate systems of land-description and definition, as well as the implementation and recording of property rights.  With my most respectful personal regards, I remain, Yours ever, Suby”

 

How does India, as a state, treat its weakest and most vulnerable citizens? Not very well at all.  It is often only because families and society have not collapsed completely, as they have elsewhere, that the weakest survive.  Can we solve in the 21st Century, in a practical manner appropriate to our times, the problem Buddha raised before he became the Buddha some twenty six centuries ago?  Says Eliot,

 

“The legend represents him as carefully secluded from all disquieting sights and as learning the existence of old age, sickness and death only by chance encounters which left a profound impression”

 

It is to this list we add “the poor” too, especially if we want to include a slightly later and equally great reformer some miles west of the Terai in the Levant.  I said some years ago “As we as infants and children need to be helped to find courage to face the start of life, we when very elderly can need to be helped to find courage to face life’s end”.   Old age carries with it the fear of death, fear of the end of life and what that means, which raises the meaning of life itself, or at least of the individual life, because we can hardly grasp what the end of life is if we haven’t what it is supposed to be the end of in the first place. What the very elderly need, as do the dying and terminally ill, is to find courage within themselves to comprehend all this with as much equanimity as possible. Companionship and camaraderie — or perhaps let us call it love — go towards that courage coming to be found; something similar goes for the sick, whether a sick child missing school or the elderly infirm, courage that they are not alone and that they can and will recover and not have to face death quite yet, that life will indeed resume.  

 

As for the poor, I said in 2009 about the bizarre Indian scheme of “interrogating, measuring, photographing and fingerprinting them against their will” that “the poor have their privacy and their dignity. They are going to refuse to waste their valuable time at the margins of survival volunteering for such gimmickry.”

 

“What New Delhi’s governing class fails to see is that the masses of India’s poor are not themselves a mass waiting for New Delhi’s handouts: they are individuals, free, rational, thinking individuals who know their own lives and resources and capacities and opportunities, and how to go about living their lives best. What they need is security, absence of state or other tyranny, roads, fresh water, electricity, functioning schools for their children, market opportunities for work, etc, not handouts from a monarch or aristocrats or businessmen….” Or, to put it differently in Kant’s terms, the poor need to be treated as ends in themselves, and not as the means towards the ends of others…

 

 

Part II India’s Right Road Forward Now: Some Thoughtful Analysis for Grown Ups

 

5.   Transcending a Left-Right/Congress-BJP Divide in Indian Politics

6.   Budgeting Military & Foreign Policy

 

7.    Solving the Kashmir Problem & Relations with Pakistan

 

8.  Dealing with Communist China

 

9.   Towards Coherence in Public Accounting, Public Finance & Public Decision-Making

 

10.   India’s Money: Towards Currency Integrity at Home & Abroad

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Budgets & Financial Positions of Three of India’s Most Populous States (combined population c.300 million)…Brought to you especially by Dr Subroto Roy… Feel free to use (with acknowledgment)…

Budgets & Financial Positions of Three of India’s Most Populous States (combined population c.300 million)…Brought to you especially by Dr Subroto Roy… Feel free to use (with acknowledgment)… Government Finance 2003-2004 (C&AG data)
EXPENDITURE ACTIVITIES : Rs Bn (Hundred Crore)
MAHARASHTRA UTTARPRADESH WEST BENGAL
government & local government 18.19 2.58% 30.33 3.52% 8.68 1.68%
judiciary 2.96 0.42% 3.17 0.37% 1.27 0.25%
police (including vigilance etc) 19.81 2.81% 25.81 2.99% 13.47 2.61%
prisons 0.86 0.12% 1.13 0.13% 0.62 0.12%
bureaucracy 27.97 3.97% 11.63 1.35% 5.69 1.10%
collecting land revenue & taxes 42.25 6.00% 8.41 0.98% 4.32 0.84%
government employee pensions 26.36 3.74% 29 3.36% 26.11 5.05%
schools, colleges, universities, institutes 93.74 13.31% 62.79 7.28% 45.06 8.72%
health, nutrition & family welfare 23.42 3.33% 18.97 2.20% 14.7 2.84%
water supply & sanitation 10.22 1.45% 6.04 0.70% 3.53 0.68%
roads, bridges, transport etc. 12.96 1.84% 16.13 1.87% 8.29 1.60%
electricity 16.96 2.41% 200.22 23.23% 31.18 6.03%
irrigation, flood cntrl., environ, ecology 70.79 10.05% 29.98 3.48% 10.78 2.09%
agricultural subsidies, rural development 41.3 5.86% 16.07 1.86% 7.97 1.54%
industrial subsidies 2.6 0.37% 8.19 0.95% 2.56 0.50%
capital city development 6.25 0.89% 1.08 0.13% 7.29 1.41%
soc security, SC, ST, OBC, lab.welfare 25.4 3.61% 18.36 2.13% 9.87 1.91%
tourism 0.89 0.13% 0.2 0.02% 0.09 0.02%
arts, archaeology, libraries, museums 0.75 0.11% 0.37 0.04% 0.16 0.03%
miscellaneous -0.47 -0.07% 0.53 0.06% 0.52 0.10%
debt amortization & debt servicing 261.03 37.07% 373.6 43.34% 314.77 60.89%
total expenditure 704.24 862.01 516.93
MAHARASHTRA UTTARPRADESH WEST BENGAL
tax revenues 285.52 268.74 141.1
operational income 35.49 22.82 6.06
grants from Union of India 22.7 24.82 18.93
loans recovered 4.82 124.98 0.91
total income 348.53 441.36 167
GOVERNMENT BORROWING REQUIREMENT
(total expenditure less total income) = 355.71 420.65 349.93
FINANCED BY
new public debt issued 317.02 385.41 339.48
use of Trust Funds etc. 38.68 35.26 10.45
355.7 420.67 349.93

My article “India’s Money” in the *Cayman Financial Review*, July 2012

India’s money

India was recognised and received the comity of nations when it signed the Treaty of Versailles as a victor, later becoming a Dominion and successor-state of British India in 1947, and a sovereign republic in 1950. Pakistan emerged as a new state created out of British India in 1947, remaining a Dominion until 1956 when it became an Islamic republic.

India was an original member of the League of Nations, a signatory to the UN’s San Francisco Declaration, a participant at Bretton Woods, and an original member of the IMF.

Yet some 65 years later, sovereign India has failed to develop a currency universally acceptable as a freely convertible world money. Nor do trade, monetary, fiscal or political conditions appear such that the rupee can become a hard currency of the world economy easily or very soon.

JM Keynes in his first book, a century ago, gave a masterly survey of the immediate monetary history. The rupee had been on a silver standard until 1893 when an attempt at bimetallism failed; instead India stumbled into the 20th century on a modified gold standard that chanced to fulfil desiderata known since Ricardo, namely “the currency media used in the internal circulation are confined to notes and cheap token coins, which are made to act precisely as if they were bits of gold by being made convertible into gold for foreign payment purposes”.

Ie, the rupee was legal tender at home and convertible into sterling for international payments in London, the price being set at 1s 4d. Gold at £3.17s.10½d until August 1914 meant a rupee price of Rs 31 per troy oz.- long-forgotten now when gold retails at Rs 90,000 per troy oz, measuring an average annual rate of inflation in the gold price of about 8.5 per cent for the century.

Until 1947 the rupee remained subservient to British policy. Sterling payments included paying for merchandise imports, dividends and repayments on British business, as well as iniquitous “home charges” imposed by Britain to rule India as an unfree imperial dependency. Britain “returned to gold” in 1925, and did so notoriously at the same price as before though the rupee was revalued to 1s 6d.; Indian businessmen complained to no avail that this hurt exports and worsened the large deflation caused by the Depression. The same continued after sterling became a paper money again in September 1931, backed only by London’s position as a financial capital.

India remained a major trading nation during 1870-1914 with a share of world manufactured exports as high as 4 per cent. Keynes found Britain (the world’s largest exporter), exporting most to India; while Germany (the world’s fastest growing economy) received 5 per cent of its imports from India and sent 1½ per cent of its exports to India, making India the sixth largest exporter to Germany (after the USA, Russia, Britain, Austria-Hungary, France) and eighth largest importer from it (after Britain, Austria-Hungary, Russia, France, the USA, Belgium, Italy).

As of 1917-1918, India’s macroeconomics appear idyllic: an export surplus of £61.42 million, official reserves of £66.53 million, total claims on the rest of the world of £127.5 million (32.85 million troy ozs of gold), and a 1916-17 budget surplus of £6,594,885. The rupee, though legal tender only on the subcontinent, became what we might call a “super convertible” currency in being widely accepted in markets and stock markets from the Middle East through South East Asia to Australia.

Even at mid-century, India (without Pakistan) was still a trading power with 2 per cent of world exports and a rank of 16 in the world economy after the USA, Britain, West Germany, France, Canada, Belgium, Holland, Japan, Italy, Australia, Sweden, Venezuela, Brazil, Malaya and Switzerland. But then a collapse occurred over several decades to near insignificance in world trade and payments, from which India has yet to recover.

Of world merchandise exports, the subcontinent’s share fell to less than 1 per cent, and of Asia’s to less than 6 per cent, India accounting for two thirds; Malaysia alone accounted for more. Among 11 major developing countries (Korea, Taiwan, Singapore, Hong Kong, Argentina, Brazil, Chile, Mexico, Israel, Yugoslavia), India’s share of manufactured exports fell from 65 per cent in 1953 to 51 percent in 1960 to 31 per cent in 1966 to 10 per cent by 1973. And this was before the entry of China.

Even India’s legendary textiles lost ground steadily. As of 1962-71, India held an average annual market-share of almost 20 per cent of manufactured textile imports into the USA; this fell to 10 per cent by 1972-81 and less than 5 per cent by 1982-91. India’s share of Britain’s imports of textile manufactures fell from 16 per cent in the early 1960s to less than 4 per cent in the 1990s. India may not be among the top thirty merchandise exporters of the world today, although there has been new growth seen in areas like pharmaceuticals and computer-services.

Causes of the collapse include Western protectionism as well as emergence of new technologies and new competitors willing to use these. But it was largely policy-induced. Between 1939 and 1945/46, Britain clamped draconian exchange-controls on what remained of the Sterling Area (which, besides Eqypt and Iraq, included the Empire and Commonwealth without Canada, Newfoundland and Hong Kong). The controls were relative to currencies outside the Sterling area, principally the US dollar.

The new India and new Pakistan, far from ending these war-time controls of their respective rupees (as Britain would itself do gradually with the pound) instead made them more draconian to include the Sterling area as well. Hence the Ricardo-Keynes dictum was breached – the rupee remained an inexpensive medium for internal circulation but was no longer convertible externally, indeed it had become open to being debauched the more easily.

Milton Friedman in November 1955 argued to the government of India that the new sovereign country should remove exchange controls completely and have a freely convertible rupee at a floating market-determined price on the pattern of the Canadian dollar, along with a steady predictable monetary climate. Far from debating such a proposal, the government ignored his advice, and his document was suppressed until I published it 34 years later in May 1989 at the University of Hawaii.

Intricate barriers, subsidies and licensing (based on war-time “essentiality” and “actual user” criteria) continued, now in name of import-substitution and “planning”. Major industries were nationalised, which became leading consumers of imports obtained by administrative rationing of foreign exchange earned by export sectors. Domestic business predictably diverted to the large protected markets that resulted. Import restrictions of consumer goods and gold expectedly led to smuggling and open corruption in Customs.

A vast parallel or “black” economy arose with its thriving “hawala” sector. The exchange-rate was seen as yet another administered price, not a reflection of demand for foreign relative to domestic moneys. Foreign currency earnings from exports were confiscated in exchange for rupees at the administered rate, then rationed first to meet foreign debt repayments and government expenditures abroad like maintenance of embassies, military imports, official foreign travel, etc; then for import of food, fertilisers, petroleum and inputs required by government firms; then for import demands of those private firms successful in obtaining import licenses; lastly, to satisfy demands of the public at large for purposes like travel or study abroad.

Not only was extension of war-time exchange-controls seen as axiomatic, the massive war-time deficit finance via money creation that the British had indulged in with India’s public finances, came to be permanently institutionalised in the name of socialist planning.

On 7 December 1952 the planners said: “The raison d’ être of a planned economy is the fullest mobilisation of available resources and their allocation so as to secure optimum results. There is no doubt that the Reserve Bank, which is a nationalised institution, will play its appropriate part in furthering economic development along agreed lines”’; and on 14 May 1956: “Insofar as government expenditure is financed by central bank credit, there is a direct increase in currency in circulation”.

The fate of India’s paper money was sealed. Just as the Bank of England could “theoretically lend the full amount” the UK government was authorised to spend by Parliament, and the US government had assurance the Federal Reserve “could and would see that the Treasury was supplied with all the money that it needed for war finance beyond those secured by taxation and by borrowing from non-bank sources”, so government of India expenditure over seven decades has been for all practical purposes assured of automatic limitless financing via money creation. Since more than two dozen state governments have no money-creating powers, their debts also effectively accrue to the government of India.

The next mention of money supply was 43 years later on April 5 1999 in the “Ninth Plan” when it was said a “viable monetary posture” was “to accept an average inflation rate in the region of 7 per cent per annum, which would justify a growth rate of money supply (base money) of 16 per cent per annum”. Recent money supply growth has been near 19-21 per cent per annum, and inflation properly measured has been well above 10 per cent. Hidden in thousands of pages of the “Tenth Plan” dated 21 December, 2002, a half century after “planning” started, is found it being said it is “financed almost entirely by borrowing… India’s public finance inherits the consequence of fiscal mismanagement in the past”.

Had the rupee been a hard currency, the vast amounts of government debt that have accumulated today could have been evaluated at world prices. As things stand, the value at world prices of the asset-sides of banks becomes an unknown, making profitability uncertain of the domestic securities’ market in general. This compounds myriad problems of the mostly nationalised banking system, candidly surveyed over years by James A. Hanson and summarised in his sentence: “The Ministry of Finance continues to run the public sector banks”. AC Harberger a decade ago called for “thorough understanding of the facts” and a “serious study of India’s fiscal deficits”.

“Where are they being parked? At what cost? And how much vacant parking space remains to be occupied before major problems emerge?” “… the authorities appear to have little sense of alarm about these deficits. Does this represent a myopic and irresponsible vision, aimed at surviving the moment while passing an ever greater burden to future governments and later generations? Or does it mean the authorities have studied the problem well, and that today’s deficits are being placed in convenient parking lots that still have plenty of unused capacity?”

As no such study has taken place, the possibility of “a myopic and irresponsible vision” takes credence. Besides, foreign lines of credit have become squeezed or closed by separate crises in the USA, Europe and Japan. India is far from being a creditor country able to help out with any world problems at present.

The last 20 years have seen liberalisation in consumer goods imports and travel and study abroad, and the rupee is no longer an administrative price for current account purposes. Indian firms have been permitted to do business abroad, Indian residents to send large cash gifts to relatives abroad, as well as relative liberalisation of gold imports. A natural technological revolution has been underway inducing real growth in India as in the rest of Asia, where populations are large and families stable: even small increases in capital-per-head, combined with modern communication technologies making travel or migration unnecessary, may explain rapid growth in productivity and output.

To move towards a currency of integrity today that befits the real growth requires comprehensive candid study of the structure of government liabilities and expenditures, systematic cleaning of government accounts at their roots, seeking to raise productivity of government investments and expenditures by better use of the audit function, as well as bringing coherence to fiscal and monetary policy through institutional changes in the processes of public decision-making, specifically, separating the banking and central banking functions from the Treasury function, while bringing the planning function to be one serving the Treasury function rather than pretending to be above it.

Waste or ostentation in public expenditure itself creates incentives for evasion of taxes; indeed, the untaxed economy may even have caused an underestimation of real growth being made. The road exists to be taken though it may be one that demands excessive political courage.

The author thanks Dr Warren Coats for constructive comments on earlier versions of this article.

Endnotes

  1. Friedman, Milton “A Memorandum to the Government of India 1955”, in Roy & James (1989).

  2. Friedman, Milton & Rose, Two Lucky People, 1998.

  3. Hanson, James A. “Indian Banking: Market Liberalization and the Pressures for Institutional and Market Framework Reform” in Krueger & Chinoy (2004).

  4. Harberger, Arnold C “Parking the Deficit – The Uncertain Link between Fiscal Deficits and Inflation-cum-Devaluation”, in Krueger & Chinoy (2004).

  5. Keynes, John Maynard, Indian Currency and Finance, 1913.

  6. Krueger, Anne O. & Sajjid Z. Chinoy (eds) Reforming India’s External, Financial and Fiscal Policies, 2004.

  7. Roy, Subroto, Pricing, Planning and Politics: A Study of Economic Distrtions in India, 1984.

  8. Roy, Subroto & WE James (eds), Foundations of India’s Political Economy: Towards an Agenda for the 1990s, 1989, 1992

 

My article “India’s Money” in the *Cayman Financial Review*, July 2012, is linked here.

Of related interest:

Monetary Integrity and the Rupee

Towards Making the Indian Rupee a Hard Currency of the World Economy: An analysis from British times until the present day

Milton Friedman’s Nov 1955 Memorandum to the Govt of India which I published for the first time at UH-Manoa on 21 May 1989, and then later in the 1992 book

miltononmefinal

A Memorandum to the Government of India 1955 by Milton Friedman

 

(published by me for the first time some 34 years later on 21 May 1989 at UH-Manoa…that original document was in my professorial office at IIT Kharagpur — and is yet to be returned despite a High Court order! 

See also    “Milton Friedman’s extempore comments at the 1989 Hawaii conference: on India, Israel, Palestine, the USA, Debt and its uses, Erhardt abolishing exchange controls, Etc”

andMilton Friedman on the Mahalanobis-Nehru “Second Plan”’

and Milton Friedman: A Man of Reason, 1912-2006… 

and Did Jagdish Bhagwati “originate”, “pioneer”, “intellectually father” India’s 1991 economic reform? Did Manmohan Singh? Or did I, through my encounter with Rajiv Gandhi, just as Siddhartha Shankar Ray told Manmohan & his aides in Sep 1993 in Washington? Judge the evidence for yourself. And why has Amartya Sen misdescribed his work? India’s right path forward today remains what I said in my 3 Dec 2012 Delhi lecture! )

 

 

[EDITORIAL NOTE from *Foundations of India’s Political Economy: Towards an Agenda for the 1990s* edited by Subroto Roy & WE James…: “This memorandum is dated November 5, 1955, and was written at the invitation of the Government of India, where the author was working for some months as a consultant to the Ministry of Finance. It has not been published before. The editors believe it remains relevant to Indian discussions today. The history of the advice given by other Western economists in the early years of the Indian Republic has been recently surveyed by George Rosen in Western Economists and Eastern Societies: Agents of Social Change in South Asia 1950-1970 (Delhi: Oxford University Press, 1985).”]

“The Goal
A 5% per annum rate of increase in real national income seems entirely feasible, on the basis both of the experience of other countries and of India’s own recent past. The great untapped resource of technical and scientific knowledge available to India for the taking is the economic equivalent of the untapped continent available to the United States 150 years ago. The basic question is one of method, of the social and economic arrangements that will best promote the conversion of these potentialities into realities while at the same time maintaining freedom and democracy and giving ever-widening opportunities to the mass of the Indian people. The belief that underlies these notes is that the basic requisites are a steady and moderately expansionary monetary framework, greatly widened opportunities for education and training, improved facilities for transportation and communication to promote the mobility not only of goods but even more important of people, and an environment that gives maximum scope to the initiative and energy of farmers, businessmen, and traders. The conquest of the technical frontier like the conquest of the geographical frontier requires a varied initiative by millions of individuals, flexibility of outlook and organization, and willingness to venture. The Government of India is doing much, and much that is highly effective, to bring these requisites into being. There is much more to do that at least in Indian conditions can be done only by the Government. But the Government also is following some policies and proposing others that are likely to hinder rather than promote economic development. The following comments, which are mainly restricted to such policies, deal with investment policy; policy toward the private sector; monetary policy; resources available to the public sector; and foreign exchange policy.

Investment Policy
Over-Emphasis on the Capital-Output Ratio. There is a tendency not only in India but in most of the literature on economic development to regard the ratio of investment to national income as almost the only key to the rate of development, to take it for granted that there is a rigid and mechanical ratio between the amount of investment and additions to output. In the opinion of this writer, this seems a serious mistake. At the one extreme, output can increase even without investment; at the other, too high a ratio of investment may actually produce a lower rate of increase in income.

There are two reasons why the amount of investment and the increase in output can be, and empirically are, only loosely connected. First, the form and distribution of investment are at least as important as its sheer magnitude. Second, what is called capital investment is only part of the total expenditure on increasing the productivity of an economy. The first reason needs little additional comment. The second is perhaps less clear. In any economy, the major source of productive power is not machinery, equipment, buildings and other physical capital; it is the productive capacity of the human beings who compose the society. Yet what we call investment refers only to expenditures on physical capital; expenditures that improve the productive capacity of human beings are generally left entirely out of account. In the United States, for example, only about one fifth of the total income is return to physical capital, four fifth to human capital. By this writer’s estimate similarly, only about one fifth of the annual rate of growth in the United States can be attributed to the direct effects of investment in the usual sense; four fifth must be attributed to the growth in the productivity of human beings. Annual expenditures on improving the quality and quantity of human resources are at least as large as and perhaps much larger than investment as usually defined. Destroy the physical plant of the United States and leave the skills of the people and it would take but a few years to restore the initial position. Destroy the skills and leave the plant and the level of output would sink irretrievably. The cathedrals of medieval Europe, the pyramids of Egypt, the monuments of the Moghul empire in India are all testimony to the possibility of a high rate of investment in physical capital without a growth in the standard of living of the masses of the people. These considerations are especially important for India, precisely because its frontier is the frontier of technical knowledge and skill.

This is not to deny in any way the desirability of investment in physical capital. It is certainly highly important and is to some measure an indispensable concomitant of the development of human capital. But it is not the whole or even the most important part of the story. The danger is that concentration on it may lead to policies that increase physical investment at the expense of investment in human capital; and even within the area of physical investment, may lead to increases in the kind of physical investment that we can measure at the expense of kinds that we cannot measure. We must be aware lest we become the victims of our statistical creations.

Emphasis on Two Extremes Against the Middle.  The form of investment is no less important than its kind. The chief problem in the Indian programme that impresses one here is the tendency to concentrate investment in heavy industry at the one extreme and handicrafts at the other, at the expense of small and moderate size industry. This policy threatens an inefficient use of capital at the one extreme by combining it with too little labour, and an inefficient use of labour at the other extreme by combining it with too little capital. The presumption for an economy like India’s is that the best use of capital is in general somewhere in between, that heavy industry can best develop and be built upon a widely diversified and much expanded light industry. We may hasten to add that this is only a general presumption which may well admit of special exceptions. Perhaps, for example, the steel industry is one exception in India.

Attempt to Do Too Much in the Public Sector. Indian thought may not have taken full account of the post-War experience of European countries in expanding the public sector. Country after country moved in this direction immediately after the War; to the best of the present writer’s knowledge, the results were in every case disappointing. This experience has produced a drastic change in the attitudes of the labour and left-wing parties toward nationalization and detailed state control over economic activity. The elements in the parties that have not changed their approach are now being dubbed “reactionary” by some of their fellows!

This point may be especially important for India. The areas for which only Government can take responsibility are here so large, so vital, and require such large investments that they alone would be a heavy burden on the limited administrative personnel of high calibre. It seems the better part of wisdom therefore to avoid any activities that can be left to others. The problem involves both the kind of activities taken into the public sector and the magnitude of investment. Some further comments are made on the latter below in discussing the resources available to the public sector.

Attempt to Control Private Investment in Too Rigid and Detailed a Fashion. (i) Cutting off particular investment projects may not make resources available for other uses but may simply eliminate savings that would otherwise have been available. Much saving is made to finance specific investment projects. If it cannot be used for that purpose, it may well be directed to consumption or to the accumulation of bullion or its equivalent. (ii) It is impossible to predict in advance the lines of investment that will turn out to be the most productive — as the failure of so many private enterprises amply demonstrates. There is therefore great need for a system that is flexible and can change easily. (iii) Detailed direction wastes scarce energies and ability of public servants in producing and enforcing regulations and of private individuals in trying to evade or avoid or change them. (iv) Given that the public sector gets the resources it demands, is not the market criterion appropriate for the allocation of the rest of investment? To frustrate it means to deny consumers freedom of choice and so to reduce the value to them of the goods produced. (v) Government does have a responsibility for seeing to it that the total of public and private investment is kept within the total resources of the community without inflation. But this can best be accomplished by monetary and fiscal policy, rather than by detailed regulation, leaving the allocation of investment among private industries to be accomplished by the interest rate. Insofar as this mechanism works imperfectly, measures to improve its operation seem preferable to supplanting it.

Policy Toward the Private Sector
Protection of Inefficient Methods of Production. In addition to the Government controls already considered which are designed to direct investment, there are others whose purpose is mainly protective: the excise tax on factory-made shoes and factory-made textiles; reservation of markets, and the like. In the opinion of this writer, such policies seem misdirected. India’s basic problem is the inefficient use of manpower; it is no solution to protect inefficiency, and the attempt to do so leads to a waste not only of human resources but also of physical capital. The extra money consumers have to pay for the products, let alone direct subsidies to producers, could be channelled at least in part into investment. And there may even be actual disinvestment — we were told that some shoe machinery was lying idle and depreciating because of the tax.

There is a tendency to underrate the importance of nominally low taxes in promoting inefficiency. For example, there is a 10% tax on factory-made shoes. But half to two-thirds of the cost of shoes is the raw material. The tax therefore amounts to 20% or 30% of the value added by the factory, and it will not pay to produce shoes unless factory production is at least this much more efficient than hand production. The justification for these devices is to increase employment. The objective is fundamental, and would be worth achieving even at some cost in total output, but it seems to the present writer dubious that these means accomplish their objective even in the very short run, and certain that they work against it in the moderate or long run. What they do is to increase the number of people employed inefficiently; but they also decrease the number of workers in factories producing the same product, and in other industries stimulated by the higher income of the factory workers; the decrease is likely to exceed the increase but because it is more diffuse and less obvious, it tends to be neglected.

Coddling of Private Industry in Certain Directions Combined with Severely Restrictive Controls in Others. Just as it is inappropriate to discriminate in favour of the cottage industries, so it is equally inappropriate to discriminate in favour of factory industry or large concerns. Granting them special favours — in the form of especially advantageous loans, guaranteed markets, refusal of licenses to competitors, enforcing or even permitting private price-fixing and market-sharing agreements — simply encourages inefficiency and wastes scarce resources. If private industry is granted special favours by the Government, it is certainly inevitable that its use of these favours will be controlled; but this does not offset the harm done by the favours; it merely introduces new sources of rigidity and inefficiency. Business ingenuity is devoted to carving out protected sectors instead of to opening up new markets and lowering costs. There is no justification for private industry unless it is competitive, unless the right to receive profits is accompanied by acceptance of the risk of loss. Private industry should be made to stand on its own feet without either favour or harassment.

Monetary Policy
Erratic Policy. A stable monetary climate is a basic prerequisite for healthy economic growth. Yet over the past five years, monetary policy has been highly erratic. It first permitted and facilitated substantial price rises, then reacted too far in the opposite direction. More recently, monetary policy has again reversed direction and again threatens to go too far, this time in an inflationary direction. This erratic policy is recorded directly in the behaviour of the stock of money and of wholesale and retail prices, and indirectly, in a less rapid rate of economic advance than would have been feasible.

The present writer believes that monetary policy in India would be more stable and consistent if the monetary authorities paid more attention to the size of the money stock and less to other indicators, and if they took as their proximate goal, a steady expansion in the money stock (allowing for seasonal influences) at a rate of something like 4 to 6 per cent per year. It may be noted that detailed examination of the record of American monetary authorities persuades one that this general proposition is equally true for the United States, with a desirable rate of expansion of the money stock of 4 per cent per year.

The importance of a stable monetary policy hardly can be overemphasized. There is probably no other single area in which mistakes can be more disastrous or appropriate policy more beneficial. The fact that it operates on a general level and makes its effects felt impersonally and indirectly is at one and the same time the reason for its crucial importance and for the widespread failure to recognize its importance.

Deficit Financing. Deficit financing is currently proceeding at the rate of something like Rs. 150 to 200 crores a year. Given the generally deflationary trend of the recent past, such a rate doubtless can be absorbed for a time without a serious price rise. It is exceedingly doubtful, however, that it can be for more than a year or so. According to some rough yet fairly detailed estimates made by this writer, something less than Rs. 500 crores is the maximum amount that can be absorbed over the next five years without a substantial rise in prices. By this estimate, continued deficit financing at a rate of Rs. 200 crores per year over that period would produce a price rise of at least 30 per cent, and perhaps much more.

Resources Available to the Public Sector
There seems to be a general agreement that planned expenditures in the public sector substantially exceed expected receipts, even after allowing for a shortfall of actual expenditures, for deficit financing to the extent of Rs. 1,000 to 1,200 crores, and for a substantial amount of foreign aid. If we are right about the safe amount of deficit financing, the actual gap is substantially larger than the amounts generally cited. This financial gap corresponds to a real resource gap. It can be filled without curtailing the Plan only by either getting additional resources from abroad; or making domestic resources more productive over and above the 5 per cent per year increase already allowed for in the estimates; or transferring resources from other uses. The transfer of resources can be brought about by additional taxation, forced savings, additional voluntary savings, or a reduction in private investment. Additional voluntary savings and a reduction in private investment can in turn be brought about to some extent by a monetary policy that allows interest rates to rise. Inflation is of course a possible danger, but it is not really a separate method of filling the gap; it is a form of taxation and, in the view of this writer, a particularly inefficient and inequitable form.

This only states the problem. We have not been able to study in detail either the tax structure of India or the financial structure for mobilizing and encouraging savings, so no independent judgment can be given on the possibility of filling the resource gap by the various means. Casual impression suggests that there is some possibility of increasing tax revenues without doing much harm, but that any substantial expansion in tax revenues or heavy reliance on any of the other methods except for foreign aid is currently subject to extremely serious limitations. If this is so, filling the gap by their use, if successful, might make public investment larger only at the expense of reducing the rate of growth of aggregate real income by killing incentives outside the public sector, eliminating potentially productive private investment, and producing either inflation or a deadening network of direct controls. This is a special case of the point made earlier about the loose connection between the rate of investment and the rate of growth of income. It may well be that under the circumstances, cutting the size of the program may be preferable to trying to fill the gap on the revenue side.

On the tax side, three comments may be made: (i) The small scope of direct income taxes seems an obvious defect in the tax structure. A more broadly based tax with lower exemptions and more effective administration might both raise considerable revenues and produce a more equitable distribution of the tax burden. (One recognizes that for a country like India there are special problems of administration and enforcement that this writer is incompetent to assess.) (ii) The use of excise taxes for the protection of one method of production or one product as opposed to another not only promotes inefficiency but is also wasteful of revenue. A 10 per cent tax on shoes would yield more revenue, do less harm to productive efficiency and cost the consumer little if any more than a 10 per cent tax on factory-made shoes. As a side observation, is it clear that if the extra proceeds were used to facilitate the retraining and placement of hand workers it would be of less value even from the point of view of the employment problem? (iii) A minor possible source of additional revenue that would have favourable effects on efficiency is the auctioning off of licenses to use foreign exchange suggested as a possibility below.

The Foreign Exchange Problem
The Foreign Exchange Gap. It is generally accepted that present programmes are likely to involve a substantial excess in the demand for foreign exchange over the available supply, even if allowance is made for foreign aid at roughly the present level. These estimates take for granted not only the investment program but also retention of the existing exchange rate and the existing structure of import and export controls. Even under these assumptions, the foreign exchange gap in part and perhaps in whole is a particular aspect of the total resource gap: any reduction in the total resource gap will automatically reduce the foreign exchange gap. Given the special foreign exchange resources that are likely to be available, we may guess that solution of the total resource gap would largely solve the foreign exchange gap as well.

Exchange Controls. The existing structure of exchange-controls and their associated system of import and export licenses and of discrimination between sources of purchases, seem to this writer a major obstacle to the growth and progress of the Indian economy. They involve waste and inefficiency in the use of foreign exchange. They introduce delay, uncertainty, and arbitrariness into domestic business activities. They impose on officials in charge of exchange control a task that is bound to be discharged most imperfectly, however able and devoted the officials may be. The criteria the officials use — and must use — tend to perpetuate the status-quo ante, and therefore constitute an obstacle to dynamic change and adaptation in an area that traditionally has been one of the most dynamic sectors in the economy and the source of much of the impetus to change. Exchange controls necessarily involve the indiscriminate distribution of implicit subsidies to those granted import licenses, and they lend themselves to abuse as a means of granting administrative protection from foreign competition to inefficient or monopolistic domestic producers.

The elimination of the exchange-controls and import and export restrictions is thus a most desirable objective of policy. It must be recognized, however, that it would probably increase the demand for foreign exchange, but the likelihood of an increase means that elimination of controls would have to be accompanied by the introduction of some other means of rationing exchange. It should be emphasized that this increase in the demand for foreign exchange is not a fresh problem that would be created by the elimination of exchange-controls. The problem is there now. That is why controls are deemed necessary. The question is whether there are not less harmful ways of solving it.

Alternatives to Exchange-Controls. One alternative, which retains central control over the amount of foreign exchange to be released, is to auction off whatever amount of foreign exchange it is decided to release, permitting the purchasers to use it for anything they wish and in any currency area they wish. This would be a far more efficient system of rationing and would hinder internal economic development far less than the present system and at the same time yield some revenue. We have not been able to construct even a rough estimate of the amount of revenue, but it is unlikely to be of major magnitude.

It would be preferable to avoid this auctioning system as well. While it eliminates any distortion in the pattern of imports, it does not produce the appropriate adjustment of exports to imports. Only two other basic alternative modes of adjustment to changes in the conditions of external trades are available: first, to inflate or deflate internally in response to a putative surplus or deficit in the balance of payments; second, to permit the exchange rate to fluctuate. At least in the present worldwide monetary conditions, the first is not desirable economically, since it puts internal conditions of trade at the mercy of changes in external conditions and these are about as likely to result from vagaries in the internal policies of other countries as from changes in the “real” conditions of trade. The preferable method is to let the exchange rate be determined in a free market — the method of a floating exchange rate that has been adopted by Canada with such conspicuous success.

It may be worth saying a few words about how a floating exchange rate eliminates any foreign exchange gap and means that there are not two problems, a total resource gap and a foreign exchange gap, but only one, a total resources gap. Suppose the total programme is in balance but, at the existing exchange rate, there is an excess of demand for foreign exchange over the supply. The result is to lower the rate. This makes India’s products more attractive to the outside world, foreign products more expensive to Indians. The result is to lead to an increase in exports, thus making more foreign exchange available, to shift the pattern of investment within India away from kinds with a large import component and toward kinds with a larger domestic resource component, away from production for the domestic market to production for the foreign market, and to shift consumption from foreign goods toward domestic goods. A putative foreign exchange surplus clearly has the opposite effects. In addition to these effects on trade, there are also, of course, effects on capital movements, which depend on whether the change in rate is regarded as temporary or permanent.

India’s membership in the Sterling Area raises obvious difficulties in the way of India’s acting alone, and may make it impossible for India to free her exchange rate except in concert with a similar move by Britain. However, if these difficulties could be surmounted, an independent movement by India might have very great advantages precisely because India is entering into a period of rapid economic change and is not a major financial centre. This writer believes there is more of an analogy between India’s and Canada’s positions than might at first appear. In a world of inconvertible currencies, a country that offers convertibility, albeit at a fluctuating fate, has a special attraction for investors and traders.

The problem of trade is frequently considered separately from that of the import of foreign capital. This is a mistake. Imports of goods may bring with them no capital directly but they bring businessmen and contact, and discovery of investment opportunities by people who are anxious to exploit them and who have contacts at home interested in such opportunities. Such continuous and intimate contact is likely to produce both a larger and, equally important, more productive flow of foreign investment than any number of missions coming out for brief periods with the objective of exploring investment opportunities.

Foreign Assistance. Any foreign assistance will of course help to fill both the total resources gap and the foreign exchange gap. Its direct impact, however, is much greater on the foreign exchange gap. In consequence, foreign assistance is especially likely to permit an elimination of import and export controls without threatening the existing exchange rate. But it would be a mistake to suppose that foreign assistance, however extensive, would permit elimination of controls, a fixed exchange rate, and an independent domestic monetary policy for any length of time. Even though the exchange rate is in some sense in long-run equilibrium, accidental fluctuations will from time to time produce large drains on reserves and if there is no mechanism for adjusting to them, these drains may well make the short-run position untenable.

Conclusion
If these comments have concentrated largely on the financial machinery of economic organization, it is not because that is the only or even the most important problem facing India but rather because, on the one hand, it is more within this writer’s special competence, and on the other, it seems to be the area in which current policy can be improved most. The present writer is convinced that the fundamental problem for India is the improvement of the physical and technical quality of her people, the awakening of a sense of hope, the weakening of rigid social and economic arrangements, the introduction of flexibility of institutions and mobility of people, the opening up of the social and economic ladder to people of all kinds and classes. And what gives an outsider like this writer a feeling of optimism and hope about the future of India, makes one feel that India is on the move and will continue to move, is that so much is being done and such a good beginning has been made on this fundamental problem of creating the human and social basis for a dynamic and progressive economy.”

Memo to the PM

From Facebook May 29 2011:

Subroto Roy hears Dr Manmohan Singh said yesterday (to journalists “on board Air India One” returning with him from Africa) “I think industrialisation is essential for the country to solve the problems of unemployment and poverty”. Nonsense Prime Minister! That is obsolescent or, at the very least, rather quaint Stalinist chatter. Try to provide public goods properly, which means getting the judiciary etc to work well. Try to get the public finances & public decision-making processes right, which means getting govt accounting & audit right and legislatures to work across the country. Try to drastically raise the productivity of public investments and expenditures. And try not to debauch India’s money any further than you have done. All that may make a good start. (And only when you have done all that do you really need to travel abroad again on “Air India One”; that thing the telephone really is a great invention…)

 Subroto Roy is scolded by Ms Siddiqui: “Out of all the corrupt money grabbing racist ministers and governors and politicians you could find only Manmohan Singh to attack? Truly discerning arent you?”,

to which I have to say Hello Ms Siddiqi, Thank you for your comment. It is I am afraid ill-informed. There is nothing personal in my critical assessment of Dr Singh’s economics and politics. To the contrary, he has been in decades past a friend or at least a colleague of my father’s, and in the autumn of 1973 visited our then-home in Paris at the request of my father to advise me, then aged 18, before I embarked on my undergraduate studies at the London School of Economics. My assessments in recent years like “The Politics of Dr Singh” https://www.facebook.com/note.php?note_id=177565501125“Assessing Manmohan”https://www.facebook.com/note.php?note_id=177600651125, “The Dream Team: A Critique” https://www.facebook.com/note.php?note_id=184178641125 “Mistaken Macroeconomics” https://www.facebook.com/note.php?note_id=179676656125 etc need to be seen along with my “Assessing Vajpayee: Hindutva True and False”, “The Hypocrisy of the CPI-M”, “Against Quackery”, “Our Dismal Politics”, “Political Paralysis” etc.

Nothing personal is intended in any of these; the purpose at hand has been to contribute to a full and vigorous discussion of the public interest in India.

Silver Jubilee of “Pricing, Planning & Politics: A Study of Economic Distortions in India”

May 29 2009:

It is a quarter century precisely today since my monograph Pricing, Planning and Politics: A Study of Economic Distortions in India was first published in London by the Institute of Economic Affairs.

ppp1984

Its text is now available (in slightly rough form) at this site here.

Now in May 1984, Indira Gandhi ruled in Delhi, and the ghost of Brezhnev was still fresh in Moscow.   The era of Margaret Thatcher in Britain and Ronald Reagan in America was at its height.   Pricing, Planning & Politics emerged from my 1976-1982 doctoral thesis at Cambridge though it came to be written in Blacksburg and Ithaca in 1982-1983.   It was the first critique after BR Shenoy of India’s Sovietesque economics since Jawaharlal Nehru’s time.

The Times, London’s most eminent paper at the time, wrote its lead editorial comment about it on the day it was published, May 29 1984.

londonti

It used to take several days for the library at Virginia Tech in Blacksburg to receive its copy of The Times of London and other British newspapers.    I had not been told of the date of publication and did not know of what had happened in London on May 29 until perhaps June 2 — when a friend, Vasant Dave of a children’s charity, who was on campus, phoned me and congratulated me for being featured in The Times which he had just read in the University Library.  “You mean they’ve reviewed it?”  I asked him, “No, it’s the lead editorial.” “What?” I exclaimed.  There was worse.  Vasant was very soft-spoken and said “Yes, it’s titled ‘India’s Bad Example'” — which I misheard on the phone as “India’s Mad Example”  😀

Drat! I thought (or words to that effect), they must have lambasted me, as I rushed down to the Library to take a look.

The Times had said

“When Mr. Dennis Healey in the Commons recently stated that Hongkong, with one per cent of the population of India has twice India’s trade, he was making an important point about Hongkong but an equally important point about India.   If Hongkong with one per cent of its population and less than 0.03 per cert of India’s land area (without even water as a natural resource) can so outpace India, there must be something terribly wrong with the way Indian governments have managed their affairs, and there is.   A paper by an Indian economist published today (Pricing, Planning and Politics: A Study of Economic Distortions in India by Subroto Roy, IEA £1.80) shows how Asia’s largest democracy is gradually being stifled by the imposition of economic policies whose woeful effect and rhetorical unreality find their echo all over the Third World.   As with many of Britain’s former imperial possessions, the rot set in long before independence.  But as with most of the other former dependencies, the instrument of economic regulation and bureaucratic control set up by the British has been used decisively and expansively to consolidate a statist regime which inhibits free enterprise, minimizes economic success and consolidates the power of government in all spheres of the economy.  We hear little of this side of things when India rattles the borrowing bowl or denigrates her creditors for want of further munificence.  How could Indian officials explain their poor performance relative to Hongkong?  Dr Roy has the answers for them.   He lists the causes as a large and heavily subsidized public sector, labyrinthine control over private enterprise, forcibly depressed agricultural prices, massive import substitution, government monopoly of foreign exchange transactions, artificially overvalued currency and the extensive politicization of the labour market, not to mention the corruption which is an inevitable side effect of an economy which depends on the arbitrament of bureaucrats.  The first Indian government under Nehru took its cue from Nehru’s admiration of the Soviet economy, which led him to believe that the only policy for India was socialism in which there would be “no private property except in a restricted sense and the replacement of the private profit system by a higher ideal of cooperative service.”  Consequently, the Indian government has now either a full monopoly or is one of a few oligipolists in banking, insurance, railways, airlines, cement, steel, chemicals, fertilizers, ship-building, breweries, telephones and wrist-watches.   No businessman can expand his operation while there is any surplus capacity anywhere in that sector.  He needs government approval to modernize, alter his price-structure, or change his labour shift.  It is not surprising that a recent study of those developing countries which account for most manufactured exports from the Third World shows that India’s share fell from 65 percent in 1953 to 10 per cent in 1973; nor, with the numerous restrictions on inter-state movement of grains, that India has over the years suffered more from an inability to cope with famine than during the Raj when famine drill was centrally organized and skillfully executed without restriction. Nehru’s attraction for the Soviet model has been inherited by his daughter, Mrs. Gandhi.  Her policies have clearly positioned India more towards the Soviet Union than the West.  The consequences of this, as Dr Roy states, is that a bias can be seen in “the antipathy and pessimism towards market institutions found among the urban public, and sympathy and optimism to be found for collectivist or statist ones.”  All that India has to show for it is the delivery of thousands of tanks in exchange for bartered goods, and the erection of steel mills and other heavy industry which help to perpetuate the unfortunate obsession with industrial performance at the expense of agricultural growth and the relief of rural poverty.”…..

I felt this may have been intended to be laudatory but it was also inaccurate and had to be corrected.  I replied dated June 4 which The Times published in their edition of  June 16 1984:

timesletter-11

I was 29 when Pricing, Planning and Politics was published, I am 54 now. I do not agree with everything I said in it and find the tone a little puffed up as young men tend to be; it was also five years before my main “theoretical” work Philosophy of Economics would be published. My experience of life in the years since has also made me far less sanguine both about human nature and about America than I was then. But I am glad to find I am not embarrassed by what I said then, indeed I am pleased I said what I did in favour of classical liberalism and against statism and totalitarianism well before it became popular to do so after the Berlin Wall fell. (In India as elsewhere, former communist apparatchiks and fellow-travellers became pseudo-liberals overnight.)

The editorial itself may have been due to a conversation between Peter Bauer and William Rees-Mogg, so I later heard. The work sold 700 copies in its first month, a record for the publisher. The wife of one prominent Indian bureaucrat told me in Delhi in December 1988 it had affected her husband’s thinking drastically. A senior public finance economist told me he had been deputed at the Finance Ministry when the editorial appeared, and the Indian High Commission in London had urgently sent a copy of the editorial to the Ministry where it caused a stir. An IMF official told me years later that he saw the editorial on board a flight to India from the USA on the same day, and stopped in London to make a trip to the LSE’s bookshop to purchase a copy. Professor Jagdish Bhagwati of Columbia University had been a critic of aspects of Indian policy; he received a copy  in draft just before it was published and was kind enough to write I had “done an excellent job of setting out the problems afflicting our economic policies, unfortunately government-made problems!”

Siddhartha Shankar Ray told me when  we first met that he had been in London when the editorial appeared and had seen it there; it affected his decision to introduce me to Rajiv Gandhi as warmly as he came to do a half dozen years later.

Within a few months though, by the Fall of 1984, I was under attack by the “gang of inert game theorists”  who had come to  Blacksburg following the departure of James Buchanan.  By mid 1985 I had moved to Provo, Utah, really rather wishing, as I recall,  to have left my India-work behind me.  But by late 1986, I was at the University of Hawaii, Manoa, where the perestroika-for-India and Pakistan projects that I and WE James led, had come to be sponsored by the University and the East West Center.

The unpublished results of the India-project reached Rajiv Gandhi by my hand on September 18 1990 as has been told elsewhere.  A week later, on September 25 1990,  Rajiv appointed a small group that included myself, to advise him.  It was that encounter with Rajiv Gandhi that sparked the origins of the 1991 economic reform.  Yet in 2007 one member of the group, declaring himself close to Sonia Gandhi, brazenly lied in public saying it was Manmohan Singh and not I who had been part of the group — a group of which I had been in fact the first member!  Manmohan Singh himself has never claimed to have been present and in fact was not even in India at the time it was formed.

I have explained elsewhere here why I believe this specific  lie  came to be told by this specific liar who shared membership with me in the group that Rajiv had formed:  because I had also pleaded with  many and especially within this group that Rajiv had seemed, to my layman’s eyes, very vulnerable to assassination, and none of them had lifted a finger to  do anything about it!  Such is how duplicity, envy and greed for power make people mendacious and venal in politics!

As for Pricing, Planning and Politics, Dr Manmohan Singh received a personal copy from my father whom he had long known through the Kaul brothers, Brahma and Madan, both of whom were dear friends of my father since the War and Independence.   From a letter Dr Singh wrote to my father,  he would have received his copy in late 1986 when he was heading the Planning Commission in his penultimate appointment before retirement from the bureaucracy.

Readers of Pricing, Planning and Politics today, 25 years after it was published, may judge for themselves what if any  part of it may be still relevant to the new government that Dr Singh is now prime minister of.   The work was mostly one of applied microeconomics or the theory of value; in recent years I have written much also of applied macroeconomics or the theory of money as it relates to India.  My great professor at Cambridge, Frank Hahn, was kind enough to say in 1985 that he thought my “critique of Development Economics was powerful not only on methodological but also on economic theory grounds”; that to me has been a special source of delight.

Subroto Roy

Twenty Years Ago in New Delhi March 18-23 1991: Excerpt from “Rajiv Gandhi & the Origins of India’s 1991 Economic Reform”

Twenty Years Ago in New Delhi March 18-23 1991: Excerpt from https://independentindian.com/thoughts-words-deeds-my-work-1973-2010/rajiv-gandhi-and-the-origins-of-indias-1991-economic-reform/

“I returned to Delhi on Monday, March 18, 1991 as new elections had been announced.  Rasgotra said I should be in touch with Krishna Rao, and the next day March 19 Krishna Rao met me for several hours. I told him what I thought were the roots and results of the Gulf war. He in turn generously told me what had happened while I had been away. He said the group had met Rajiv in December with the proposal that Rajiv better organize his time by having an “office manager” of larger political stature than George. The name of a UP Congressman of integrity had been put forward, but nothing had come of it. Rajiv had been advised to keep Chandrashekhar in power through the autumn of 1991, as Chandrashekhar was doing Rajiv’s work for him of sidelining V. P. Singh. The idea was to cooperate with Chandrashekhar until he could be pushed up to the Presidency when that fell vacant. Rajiv had been advised not to work in a Chandrashekhar cabinet, though in my opinion, had we been like the Scandinavians, it was not impossible for a former prime minister to enter another cabinet on the right terms in the national interest of providing stable government, which was imperative at the time. Things seem to have slipped out of control when Chandrashekhar resigned. At that point, Rajiv called the group together and instructed them to write a draft of the manifesto for the impending elections. I had advised readiness back in September but the lack of organization had prevented much tangible progress at the time. Our group was to now report to a political manifesto-committee of three senior party leaders who would report to Rajiv. They were Narasimha Rao, Pranab Mukherjee and Madhavsingh Solanki. Krishna Rao liased with Narasimha Rao, Krishnamurty with Mukherjee, Pitroda with Solanki. While Rajiv would obviously lead a new Congress Government, Mukherjee was the presumptive Finance Minister, while Narasimha Rao and Solanki would have major portfolios though Narasimha Rao was expected to retire before too long.

Krishna Rao said I should be in touch with Krishnamurty who was preparing the economic chapters of the draft of the manifesto. Krishnamurty told me he had brought in A. M. Khusro to the group, and there would be a 5 p.m. meeting at Khusro’s office at the Aga Khan Foundation. I arrived early and was delighted to meet Khusro, and he seemed pleased to meet me. Khusro seemed excited by my view that India and Pakistan were spending excessively on defence against each other, which resonated with his own ideas, and he remarked the fiscal disarray in India and Pakistan could start to be set right by mutually agreed cuts in military spending. (Khusro was eventually to accompany Prime Minister Vajpayee to Lahore in 1999).

Krishnamurty had prepared a draft dated March 18 of several pages of the economic aspects of the manifesto. After our discussions, Krishnamurty was hospitable enough to open the draft to improvement. That evening, the 19th, I worked through the night and the next morning to get by noon copies of a revised version with all the members of the group. At 4 p.m. on the 20th there was a meeting at Andhra Bhavan of the whole group except Pitroda, which went on until the night. The next day the 21st , Krishnamurty, Khusro and I met again at Andhra Bhavan for a few hours on the economic aspects of the draft. Then in mid-afternoon I went to Rasgotra’s home to work with him and Krishna Rao. They wanted me to produce the economic draft which they could then integrate as they wished into the material they were dictating to a typist. I offered instead to absorb their material directly on to my laptop computer where the economic draft was. Rasgotra was reluctant to let go control, and eventually I gave in and said I would get them a hard copy of the economic draft, which they then planned to re-draft via a stenographer on a typewriter. At this, Rasgotra gave in and agreed to my solution. So the work began and the three of us continued until late.

That night Krishna Rao dropped me at Tughlak Road where I used to stay with friends. In the car I told him, as he was a military man with heavy security cover for himself as a former Governor of J&K, that it seemed to me Rajiv’s security was being unprofessionally handled, that he was vulnerable to a professional assassin. Krishna Rao asked me if I had seen anything specific by way of vulnerability. With John Kennedy and De Gaulle in mind, I said I feared Rajiv was open to a long-distance sniper, especially when he was on his campaign trips around the country.

This was one of several attempts I made since October 1990 to convey my clear impression to whomever I thought might have an effect that Rajiv seemed to me extremely vulnerable. Rajiv had been on sadhbhavana journeys, back and forth into and out of Delhi. I had heard he was fed up with his security apparatus, and I was not surprised given it seemed at the time rather bureaucratized. It would not have been appropriate for me to tell him directly that he seemed to me to be vulnerable, since I was a newcomer and a complete amateur about security issues, and besides if he agreed he might seem to himself to be cowardly or have to get even closer to his security apparatus. Instead I pressed the subject relentlessly with whomever I could. I suggested specifically two things: (a) that the system in place at Rajiv’s residence and on his itineraries be tested, preferably by some internationally recognized specialists in counter-terrorism; (b) that Rajiv be encouraged to announce a shadow-cabinet. The first would increase the cost of terrorism, the second would reduce the potential political benefit expected by terrorists out to kill him. On the former, it was pleaded that security was a matter being run by the V. P. Singh and then Chandrashekhar Governments at the time. On the latter, it was said that appointing a shadow cabinet might give the appointees the wrong idea, and lead to a challenge to Rajiv’s leadership. This seemed to me wrong, as there was nothing to fear from healthy internal contests for power so long as they were conducted in a structured democratic framework. I pressed to know how public Rajiv’s itinerary was when he travelled. I was told it was known to everyone and that was the only way it could be since Rajiv wanted to be close to the people waiting to see him and had been criticized for being too aloof. This seemed to me totally wrong and I suggested that if Rajiv wanted to be seen as meeting the crowds waiting for him then that should be done by planning to make random stops on the road that his entourage would take. This would at least add some confusion to the planning of potential terrorists out to kill him. When I pressed relentlessly, it was said I should probably speak to “Madame”, i.e. to Mrs. Rajiv Gandhi. That seemed to me highly inappropriate, as I could not be said to be known to her and I should not want to unduly concern her in the event it was I who was completely wrong in my assessment of the danger. The response that it was not in Congress’s hands, that it was the responsibility of the V. P. Singh and later the Chandrashekhar Governments, seemed to me completely irrelevant since Congress in its own interests had a grave responsibility to protect Rajiv Gandhi irrespective of what the Government’s security people were doing or not doing. Rajiv was at the apex of the power structure of the party, and a key symbol of secularism and progress for the entire country. Losing him would be quite irreparable to the party and the country. It shocked me that the assumption was not being made that there were almost certainly professional killers actively out to kill Rajiv Gandhi — this loving family man and hapless pilot of India’s ship of state who did not seem to have wished to make enemies among India’s terrorists but whom the fates had conspired to make a target. The most bizarre and frustrating response I got from several respondents was that I should not mention the matter at all as otherwise the threat would become enlarged and the prospect made more likely! This I later realized was a primitive superstitious response of the same sort as wearing amulets and believing in Ptolemaic astrological charts that assume the Sun goes around the Earth — centuries after Kepler and Copernicus. Perhaps the entry of scientific causality and rationality is where we must begin in the reform of India’s governance and economy. What was especially repugnant after Rajiv’s assassination was to hear it said by his enemies that it marked an end to “dynastic” politics in India. This struck me as being devoid of all sense because the unanswerable reason for protecting Rajiv Gandhi was that we in India, if we are to have any pretensions at all to being a civilized and open democratic society, cannot tolerate terrorism and assassination as means of political change. Either we are constitutional democrats willing to fight for the privileges of a liberal social order, or ours is truly a primitive and savage anarchy concealed beneath a veneer of fake Westernization.

The next day, Friday March 22, I worked from dawn to get the penultimate draft to Krishna Rao before noon as planned the night before. Rasgotra arrived shortly, and the three of us worked until evening to finish the job. I left for an hour to print out copies for a meeting of the entire group, where the draft we were going to submit would come to be decided. When I got back I found Rasgotra had launched an extended and quite unexpected attack on what had been written on economic policy. Would someone like Manmohan Singh, Rasgotra wanted to know, agree with all this talk we were putting in about liberalization and industrial efficiency? I replied I did not know what Manmohan Singh’s response would be but I knew he had been in Africa heading something called the South-South Commission for Julius Nyrere of Tanzania. I said what was needed was a clear forceful statement designed to restore India’s credit-worthiness, and the confidence of international markets. I said that the sort of thing we should aim for was to make clear, e.g. to the IMF’s man in Delhi when that person read the manifesto, that the Congress Party at least knew its economics and was planning to make bold new steps in the direction of progress. I had argued the night before with Rasgotra that on foreign policy we should “go bilateral” with good strong ties with individual countries, and drop all the multilateral hogwash. But I did not wish to enter into a fight on foreign policy which he was writing, so long as the economic policy was left the way we said. Krishnamurty, Khusro and Pitroda came to my defence saying the draft we had done greatly improved on the March 18 draft. For a bare half hour or so with all of us present, the draft was agreed upon. Later that night at Andhra Bhavan, I gave Krishna Rao the final copy of the draft manifesto which he was going to give Narasimha Rao the next day, and sent a copy to Krishnamurty who was liaising with Pranab Mukherjee. Pitroda got a copy on a floppy disc the next day for Solanki.

In its constructive aspects, the March 22 1991 draft of the Congress manifesto went as follows with regard to economic policy: “CHAPTER V AGENDA FOR ECONOMIC ACTION 1. Control of Inflation …. The Congress believes the inflation and price-rise of essential commodities… is a grave macroeconomic problem facing the country today. It has hit worst the poorest and weakest sections of our people and those with fixed incomes like pensioners. The Congress will give highest priority to maintaining the prices of essential commodities, increasing their production and supply using all appropriate economic instruments. 2. Macroeconomic Policy Framework To control inflation of the general price-level, the Congress will provide a predictable long-term policy framework. The average Indian household and business will not have their lives and plans disrupted by sudden changes in economic policy. Coherent monetary policy measures will be defined as called for by the Report of Experts of the Reserve Bank of India in 1985. The Long-Term Fiscal Policy introduced by the Congress Government of 1984-1989 will be revived. Medium and long-term export-import policies will be defined. The basis for a strong India must be a strong economy. The Congress believes a high rate of real growth is essential for securing a strong national defence, social justice and equity, and a civilized standard of living for all. As the party of self-reliance, Congress believes resources for growth must be generated from within our own economy. This means all wasteful and unproductive Government spending has to be cut, and resources transferred from areas of low priority to areas of high national priority. Subsidies have to be rationalized and reduced, and productivity of investments already made has to be improved. The widening gap between revenue receipts and revenue expenditure must be corrected through fiscal discipline, and the growing national debt brought under control as a matter of high priority. These policies in a consistent framework will create the environment for the freeing of the rupee in due course, making it a hard currency of the world of which our nation can be proud. Public resources are not unlimited. These have to be allocated to high priority areas like essential public services, poverty-reduction, strategic sectors, and protection of the interests of the weaker sections of society. Government has to leave to the initiative and enterprise of the people what can be best done by themselves. Government can now progressively vacate some areas of activity to the private, cooperative and non-government sectors. Black money in the parallel economy has become the plague of our economic and political system. This endangers the social and moral fabric of our nation. Artificial price controls, excessive licensing, capacity restrictions, outmoded laws on rent control and urban ceiling, and many other outdated rules and regulations have contributed to pushing many honest citizens into dishonest practices. The Congress will tackle the problem of black money at its roots by attacking all outmoded and retrograde controls, and simplifying procedures in all economic spheres. At the same time, the tax-base of the economy must be increased via simplification and rationalization of tax-rates and coverage, user-fees for public goods, and reduction of taxes wherever possible to improve incentives and stimulate growth. 3. Panchayati Raj India’s farmers and khet mazdoors are the backbone of our economy. Economic development is meaningless until their villages provide them a wholesome rural life. The Congress will revitalize Panchayat Raj institutions to decentralize decision-making, so development can truly benefit local people most effectively. 4. Rural Development Basic economic infrastructure like roads, communications, fresh drinking water, and primary health and education for our children must reach all our villages. The Congress believes such a policy will also relieve pressures from migration on our towns and cities…… Through the Green Revolution which the Congress pioneered over 25 years, our farmers have prospered. Now our larger farmers must volunteer to contribute more to the national endeavour, and hence to greater equity and overall economic development. Equity demands land revenue should be mildly graduated so that small farmers holding less than one acre pay less land revenue per acre…. 9. Education and Health The long-run prosperity of our nation depends on the general state of education, health and well-being of our people. Small families give themselves more choice and control over their own lives. Improving female literacy, promoting the welfare of nursing mothers and reducing infant mortality will have a direct bearing on reducing the birth-rate and improving the health and quality of all our people. Primary and secondary education has high social returns and is the best way in the long-run for achievement of real equality. Efforts will be made to reduce the cost of education for the needy through concessional supply of books and other study materials, scholarships and assistance for transportation and residential facilities. The Congress Party pledges to dedicate itself to promoting education, especially in rural areas and especially for girls and the weaker sections of society. The next Congress Government will prepare and launch a 10-year programme for introduction of free and compulsory primary education for all children of school age. It will continue to emphasize vocational bias in education, integrating it closely with employment opportunities…. 11. Industrial Efficiency Our industrial base in the private and public sectors are the core of our economy. What we have achieved until today has been creditable, and we are self-reliant in many areas. Now the time has come for industry to provide more efficiency and better service and product-quality for the Indian consumer. The public sector has helped the Indian economy since Independence and many national goals have been achieved. Now it has become imperative that the management of public sector units is made effective, and their productivity increased. Major steps must be taken for greater accountability and market-orientation. Failure to do this will make our country lose more and more in the international economy. Budgetary support will be given only for public sector units in the core and infrastructure sectors. Emphasis will be on improving performance and productivity of existing investments, not on creating added organizations or over manning. Units not in the core sector will be privatised gradually. Even in core sectors like Telecommunications, Power, Steel and Coal, incremental needs can be taken care of by the private sector. The Government-Enterprise interface must be properly defined in a White Paper. The Congress believes privatisation must distribute the profits equitably among the people of India. In order to make our public enterprises truly public, it is essential that the shares of many such enterprises are widely held by the members of the general public and workers. Congress pledges to allot a proportion of such shares to the rural Panchayats and Nagarpalikas. This will enhance their asset-base and yield income for their development activities, as well as improve income-distribution. 12. Investment and Trade Indian industry, Government and professional managers are now experienced enough to deal with foreign companies on an equal footing, and channel direct foreign investment in desired directions. Foreign companies often bring access to advanced technological know-how, without which the nation cannot advance. The Congress Government will formulate a pragmatic policy channelling foreign investment into areas important to the national interest. Every effort must be made also to encourage Indians who are outside India to invest in the industry, trade and real estate of their homeland. Because of the protected and inflationary domestic market, Indian industry has become complacent and the incentive for industrial exports has been weakened. When all production is comfortably absorbed at home, Indian industry makes the effort to venture into exports only as a last resort. This must change. A Congress Government will liberalize and deregulate industry to make it competitive and export-oriented, keeping in mind always the interests of the Indian consumer in commercial policy. Export-oriented and predictable commercial policies will be encouraged. Existing procedural constraints and bottlenecks will be removed. Quotas and tariffs will be rationalized. Thrust areas for export-development will be identified and monitored. Efforts will be made to develop a South Asian Community. Trade and economic cooperation among South Asian countries must be increased and simplified.”

This March 22 1991 draft of the Congress’s intended economic policies got circulated and discussed, and from it rumours and opinions appeared that Congress was planning to launch a major economic reform in India. Economic Times said the manifesto “is especially notable for its economic agenda” and Business Standard said “if party manifestos decide election battles” Congress must be “considered home and dry”. A senior IMF official told me three years later the manifesto had indeed seemed a radical and bold move in the direction of progress, which had been exactly our intended effect.

When I met Manmohan Singh at the residence of S. S. Ray in September 1993 in Washington, Ray told him and his senior aides the Congress manifesto had been written on my computer. Manmohan Singh smiled and said that when Arjun Singh and other senior members of the Congress had challenged him in the cabinet, he had pointed to the manifesto. Yet, oddly enough, while the March 22 draft got discussed and circulated, and the Indian economic reform since July 1991 corresponded in fundamental ways to its contents as reproduced above, the actual published Congress manifesto in April 1991 was as tepid and rhetorical as usual, as if some party hack had before publication put in the usual nonsense about e.g. bringing down inflation via price-controls. Certainly the published manifesto was wholly undistinguished in its economic aspects, and had nothing in it to correspond to the bold change of attitude towards economic policy that actually came to be signalled by the 1991 Government.

On March 23, our group was to meet Rajiv at noon. There was to be an event in the inner lawns of Rajiv’s residence in the morning, where he would launch Krishna Rao’s book on India’s security. Krishna Rao had expressly asked me to come but I had to wait outside the building patiently, not knowing if it was a mistake or if it was deliberate. This was politics after all, and I had ruffled feathers during my short time there. While I waited, Rajiv was speaking to a farmers’ rally being held at grounds adjoining his residence, and there appeared to be thousands of country folk who had gathered to hear him. When it was over, Rajiv, smiling nervously and looking extremely uncomfortable, was hoisted atop people’s shoulders and carried back to the residence by his audience. As I watched, my spine ran cold at the thought that any killer could have assassinated him with ease in that boisterous crowd, right there in the middle of Delhi outside his own residence. It was as if plans for his security had been drawn up without any strategic thinking underlying them.

Krishna Rao arrived and graciously took me inside for his book launch. The event was attended by the Congress’s top brass, including Narasimha Rao whom I met for the first time, as well as foreign military attaches and officers of the Indian armed forces. The attaché of one great power went about shaking hands and handing out his business card to everyone. I stood aside and watched. Delhi felt to me that day like a sieve, as if little could be done without knowledge of the embassies. One side wanted to sell arms, aircraft or ships, while the other wanted trips abroad or jobs or green cards or whatever for their children. And I thought Islamabad would be worse — could India and Pakistan make peace in this fetid ether?

Proceedings began when Rajiv arrived. This elite audience mobbed him just as the farmers had mobbed him earlier. He saw me and beamed a smile in recognition, and I smiled back but made no attempt to draw near him in the crush. He gave a short very apt speech on the role the United Nations might have in the new post-Gulf War world. Then he launched the book, and left for an investiture at Rashtrapati Bhavan.

We waited for our meeting with him, which finally happened in the afternoon. Rajiv was plainly at the point of exhaustion and still hard-pressed for time. He seemed pleased to see me and apologized for not talking in the morning. Regarding the March 22 draft, he said he had not read it but that he would be doing so. He said he expected the central focus of the manifesto to be on economic reform, and an economic point of view in foreign policy, and in addition an emphasis on justice and the law courts. I remembered our September 18 conversation and had tried to put in justice and the courts into our draft but had been over-ruled by others. I now said the social returns of investment in the judiciary were high but was drowned out again. Rajiv was clearly agitated that day by the BJP and blurted out he did not really feel he understood what on earth they were on about. He said about his own family, “We’re not religious or anything like that, we don’t pray every day.” I felt again what I had felt before, that here was a tragic hero of India who had not really wished to be more than a happy family man until he reluctantly was made into a national leader against his will. We were with him for an hour or so. As we were leaving, he said quickly at the end of the meeting he wished to see me on my own and would be arranging a meeting. One of our group was staying back to ask him a favour. Just before we left, I managed to say to him what I felt was imperative: “The Iraq situation isn’t as it seems, it’s a lot deeper than it’s been made out to be.” He looked at me with a serious look and said “Yes I know, I know.” It was decided Pitroda would be in touch with each of us in the next 24 hours. During this time Narasimha Rao’s manifesto committee would read the draft and any questions they had would be sent to us. We were supposed to be on call for 24 hours. The call never came. Given the near total lack of system and organization I had seen over the months, I was not surprised. Krishna Rao and I waited another 48 hours, and then each of us left Delhi. Before going I dropped by to see Krishnamurty, and we talked at length. He talked especially about the lack of the idea of teamwork in India. Krishnamurty said he had read everything I had written for the group and learned a lot. I said that managing the economic reform would be a critical job and the difference between success and failure was thin.

I got the afternoon train to Calcutta and before long left for America to bring my son home for his summer holidays with me. In Singapore, the news suddenly said Rajiv Gandhi had been killed. All India wept. What killed him was not merely a singular act of criminal terrorism, but the system of humbug, incompetence and sycophancy that surrounds politics in India and elsewhere. I was numbed by rage and sorrow, and did not return to Delhi. Eleven years later, on 25 May 2002, press reports said “P. V. Narasimha Rao and Manmohan Singh lost their place in Congress history as architects of economic reforms as the Congress High command sponsored an amendment to a resolution that had laid credit at the duo’s door. The motion was moved by…. Digvijay Singh asserting that the reforms were a brainchild of the late Rajiv Gandhi and that the Rao-Singh combine had simply nudged the process forward.” Rajiv’s years in Government, like those of Indira Gandhi, were in fact marked by profligacy and the resource cost of poor macroeconomic policy since bank-nationalisation may be as high as Rs. 125 trillion measured in 1994 rupees. Certainly though it was Rajiv Gandhi as Leader of the Opposition in his last months who was the principal architect of the economic reform that came to begin after his passing.”

 rajiv_gandhi Rajiv Gandhi 20 August 1944- 21 May 1991

Rajiv-Gandhi-and-the-origins-of-indias-1991-economic-reform/
. See also https://independentindian.com/2013/08/23/did-jagdish-bhagwati-originate-pioneer-intellectually-father-indias-1991-economic-reform-did-manmohan-singh-or-did-i-through-my-encounter-with-rajiv-gandhi-just-as-siddhartha-shan/also

https://independentindian.com/2011/05/21/twenty-years-ago-today-march-23-1991-an-excerpt/

Two Different Models for India’s Political Economy: Mine & Dr Manmohan Singh’s (Updated 2013)

see

https://independentindian.com/2013/05/19/cambridge-economics-the-disputation-in-indias-economic-policy/

https://independentindian.com/2013/08/23/did-jagdish-bhagwati-originate-pioneer-intellectually-father-indias-1991-economic-reform-did-manmohan-singh-or-did-i-through-my-encounter-with-rajiv-gandhi-just-as-siddhartha-shan/

https://independentindian.com/2009/06/12/mistaken-macroeconomics-an-open-letter-to-prime-minister-dr-manmohan-singh/

From Facebook

February 24 2011

Subroto Roy does not know if he just heard Manmohan Singh say “inflation will soon come down” — excuse me Dr Singh, but how was it you and all your acolytes uniformly said back in July 2010 that inflation would be down to 6% by Dec 2010? 6%?! 16% more likely! I said. Until he explains his previous error, we may suppose he will repeat it.

January 11 2011:

Subroto Roy can stop the Indian inflation and bring integrity to the currency over time, and Manmohan Singh and his advisers cannot (because they have the wrong economic models/theories/data etc and refuse to change), but then they would have to make me a Minister and I keep getting reminded of what Groucho Marx said about clubs that would have him.

Subroto Roy does not think Dr Manmohan Singh or his acolytes and advisers, or his Finance Minister and his acolytes and advisers, understand Indian inflation. If you do not understand something, you are not likely to change it.

March 6 2010:

Subroto Roy  says the central difference between the Subroto Roy Model for India as described in 1990-1991 to Rajiv Gandhi in his last months, and the Manmohan Singh Model for India that has developed since Rajiv’s assassination, is that by my model, India’s money and public finances would have acquired integrity enough for the Indian Rupee to have become a hard currency of the world economy by now, allowing all one billion Indians access to foreign exchange and precious metals freely, whereas by the model of Dr Singh and his countless supporters, India’s money and public finance remain subject to government misuse and abuse, and access to foreign exchange remains available principally to politicians, bureaucrats, big business and its influential lobbyists, the military, as well as perhaps ten or twenty million nomenclatura in the metropolitan cities.

April 8 2010:

Subroto Roy notes a different way of stating his cardinal difference with the economics of Dr Manmohan Singh’s Govt: in their economics, foreign exchange is “made available” by the GoI for “business and personal uses”. That is different from my economics of aiming for all one billion Indians to have a money that has some integrity, i.e., a rupee that becomes a hard currency of the world economy. (Ditto incidentally with the PRC.)

 

Updates:

From Facebook:

Subroto Roy  reads in *Newsweek* today  (Aug 19) Manmohan Singh “engineered the transition from stagnant socialism to a spectacular takeoff”.  This contradicts my experience with Rajiv Gandhi at 10 Janpath in 1990-91. Dr Singh had not returned to India from his years with Julius Nyerere in his final assignment before retiring from the bureaucracy when Rajiv and I first met on 18 September 1990.

“After (Rajiv Gandhi’s) assassination, the comprador business press credited Narasimha Rao and Manmohan Singh with having originated the 1991 economic reform.  In May 2002, however, the Congress Party itself passed a resolution proposed by Digvijay Singh explicitly stating Rajiv and not either of them was to be so credited… There is no evidence Dr Singh or his acolytes were committed to any economic liberalism prior to 1991 and scant evidence they have originated liberal economic ideas for India afterwards. Precisely because they represented the decrepit old intellectual order of statist ”Ma-Bap Sarkari” policy-making, they were not asked in the mid-1980s to be part of a “perestroika-for-India” project done at a foreign university ~ the results of which were received…by Rajiv Gandhi in hand at 10 Janpath on 18 September 1990 and specifically sparked the change in the direction of his economic thinking…”

Subroto Roy notes that current Indian public policy discussion has thus far failed to realise that the rise in money prices of real goods and services is the same as the fall in the real value of money.

Subroto Roy  is interested to hear Mr Jaitley say in Parliament today the credibility of Government economists is at stake. Of course it is. There has been far too much greed and mendacity all around, besides sheer ignorance. (When I taught for a year or so at the Delhi School of Economics as a 22 year old Visiting Assistant Professor in 1977-78, I was told Mr Jaitley was in the law school and a student leader of note. I though was more interested in teaching the usefulness of Roy Radner’s “information structures” in a course on “advanced economic theory”.)

 

 

 

 

July 31 2010

Subroto Roy reads in today’s pink business newspaper the GoI’s debt level at Rs 38 trillion & three large states (WB, MH, UP) is at Rs 6 trillion, add another 18 for all other large states together, another 5 for all small states & 3 for errors and omissions, making my One Minute Estimate of India’s Public Debt Stock Rs 70 trillion (70 lakh crores). Interest payments at, say, 9%, keep the banking system afloat, extracting oxygen from the public finances like a cyanide capsule.

July 28 2010

Subroto Roy observes Parliament to be discussing Indian inflation but expects a solution will not be found until the problem has been comprehended.

July 27 2010:

Subroto Roy continues to weep at New Delhi’s continual debauching of the rupee.

July 25 2010:

Subroto Roy  has no idea why Dr Manmohan Singh has himself (along with all his acolytes and flatterers in the Government and media and big business), gone about predicting Indian inflation will fall to 6% by December. 16% may be a more likely figure given a public debt at Rs 40 trillion perhaps plus money supply growth above 20%! (Of course, the higher the figure the Government admits, the more it has to pay in dearness allowance to those poor unionized unfortunates known as Government employees, so perhaps the official misunderestimation (sic) of Indian inflation is a strategy of public finance!)

July 12 2010:

Subroto Roy is amused to read Dr Manmohan Singh’s Chief Acolyte say in today’s pink business newspaper how important accounting is in project-appraisal — does the sinner repent after almost single-handedly helping to ruin project-appraisal  & government accounting & macroeconomic planning over decades?  I  rather doubt it.   For myself, I am amused to see chastity now being suddenly preached from within you-know-where.

July 4 2010:

Subroto Roy does not think the Rs 90 billion (mostly in foreign exchange) spent by the Manmohan Singh Government on New Delhi’s “Indira Gandhi International Airport Terminal 3” is conducive to the welfare of the common man (“aam admi”) who travels, if at all, mostly within India and by rail.

Subroto Roy hears Dr Manmohan Singh say yesterday “Global economic recession did not have much impact on us as it had on other countries”. Of course it didn’t. I had said India was hardly affected but for a collapse of exports & some fall in foreign investment. Why did he & his acolytes then waste vast public resources claiming they were rescuing India using a purported Keynesian fiscal “stimulus” (aka corporate/lobbyist pork)?

May 26 2010:

Subroto Roy  would like to know how & when Dr Manmohan Singh will assess he has finished the task/assignment he thinks has been assigned to him & finally retire from his post-retirement career: when his Chief Acolyte declares on TV that 10% real GDP growth has been reached? (Excuse me, but is that per capita? And about those inequalities….?)

“I’m on my way out”: Siddhartha Shankar Ray (1920-2010)

I  am grieved to hear of the death of Siddhartha Shankar Ray last night.

I was introduced to him by an uncle who had been his college-buddy, and he took up a grave personal matter of mine in the Supreme Court of India in 1990 with great kindness, charging me not a penny, being impressed by a little explicit “civil disobedience” I had had to show at the time towards Judge Evelyn Lance.

He also told me he and his wife had been in London on May 29 1984 and had seen *The Times*’s leader that day about my critique of Indian economic policy. He invited me to his Delhi home where I told him about the perestroika-for-India project I had led at the University of Hawaii since 1986, at which he, of his own accord, declared

“You must meet Rajiv Gandhi.  I will arrange a meeting”.

That led to my meeting with Rajiv Gandhi, then Congress President & Leader of the Opposition, on September 18 1990, which contributed to the origins of India’s 1991 economic reform as has been told elsewhere. https://independentindian.com/thoughts-words-deeds-my-work-1973-2010/rajiv-gandhi-and-the-origins-of-indias-1991-economic-reform/

Rajiv’s assistant George told me Rajiv had said he had not heard more fulsome praise.

In Bengal, he took me as a guest to visit the Legislative Assembly in session when he was Leader of the Opposition; it was the legislature of which my great grandfather, Surendranath Roy, had been a founder, being the first Deputy President and acting President too; Surendranath had been friends with his maternal grandfather, CR Das, leader of the Congress Party before MK Gandhi, and he said to me in the car heading to the legislature about that relationship in Bengal’s politics some seven decades earlier “They were friends”.

He introduced me to all the main leaders of the Bengal Congress at the time (except Mamata Banerjee who could not come) and I was tasked by him to write the manifesto for the State elections that year, which I did (in English, translated into Bangla by Professor Manjula Bose); the Communists won handily again but one of their leaders (Sailen Dasgupta) declared there had never been a State Congress manifesto of the sort before, being as it was an Orwell-like critique of Bengal’s Stalinism.

In a later conversation, I said to him I wished he be appointed envoy to Britain, he instead came to be appointed envoy to the USA.

In Washington in September 1993, he said “You must meet Manmohan Singh”, and invited me to a luncheon at the Ambassador’s Residence where, to Manmohan Singh and all his aides, he declared pointing at me

“The Congress manifesto (of 1991) was written on his (laptop) computer”.

In later years I kept him informed of developments and gave him my publications.   We last met in July last year where I gave him a copy, much to his delight, of *Margaret Thatcher’s Revolution: How it Happened and What it Meant*.

I said to him Bengal’s public finances were in abysmal condition, calling for emergency measures financially, and that Mamata Banerjee seemed to me to be someone who knew how to and would dislodge the Communists from their entrenched misgovernance of decades but not quite aware that dislodging a bad government politically was not the same thing as knowing how to govern properly oneself.

He,  again of his own accord, said immediately,

“I will call her and her main people to a meeting here so you can meet them and tell them that directly”.

It never transpired.

He and I were supposed to meet a few months ago but could not due to his poor health; on the phone in our last conversation I mentioned to him my plans of creating a Public Policy Institute — an idea he immediately and fully endorsed as being essential though adding

“I can’t be part of it,  I’m on my way out”.

“I’m on my way out”.   🙂

That was Siddhartha Shankar Ray — always intelligent, always good-humoured, always public-spirited, always a great Indian.

I shall miss a good friend, indeed my only friend among politicians other than the late Rajiv Gandhi himself.

 

On Applying Disraeli’s “Two Nations” of Victorian England to Modern India: Roy & James, Rajiv, Rahul & Manmohan

From Subroto Roy & WE James’s Introduction 1989-1990 to Foundations of India’s Political Economy: Towards an Agenda for the 1990s edited by them, published by Sage 1992, received by Rajiv Gandhi on September 1990 in manuscript form.

“Finally, no discussion of the subcontinent’s political economy can ignore the fact of the monumental poverty of external goods on the part of a vast population, in contrast with a fairly large class of people with adequate livelihoods, in turn contrasting with small islands of indolence and conspicuous consumption.  Benjamin Disraeli said of Victorian England that it consisted of two nations.  The Indian subcontinent today consists in many respects of two nations living side by side, the real division being much less longitudinal on religious or communal lines (as intended by Muslim separatists at the time of Partition and Hindu imperialists today) as it is latitudinal on class lines between “bhadralok” and “janata”, middle class and working classes, bourgeoisie and masses, “nomenclatura” and proletariat.  The sheer numbers can justify speaking of whole nations, the janata in India alone consisting of something like seven hundred million people, the bhadralok of one hundred and fifty million.  The Indian bhadralok on their own constitute one of the largest nations on earth.

The bhadralok are not to be distinguished from the janata by any self-styled civility, nor is there any inevitable conflict which will lead to the victory of one and decimation of the other, nor is it that one derives its income from productive effort or enterprise and the other does not.  A more effective criterion by which to distinguish the two nations of India may have to do not with work but with leisure, as well as with the kind of capital that comes to be inherited over time. The janata are the unleisured nation of India, people who mostly due to the meagreness of their initial resources come to possess little or no leisure in the course of their lifetimes.  They are scattered and illiterate, without connections in high places, often too involved with the hardships of daily life to care for much else.  They eat and sleep to maintain the minimum energy needed to survive, reproduce and send their children to school or work, travelling through life day by day and week by week.  They may have some short time devoted to religion or entertainment, but life is too often too hard, not so much without happiness or culture as without much time for either.  Expectations of what life has to offer may be unambitious and yet successful.

Inequality from an economic point of view may consist of the fact that the poor do not inherit any leisure from the past.  They do not inherit the savings of their parents and ancestors because most did not have parents and ancestors who had any savings to leave behind.  Capital and the income it generates, and the consumption which such income makes possible, are among the most subtle notions of political economy.  As a rough approximation, if we distinguish between human capital, physical and financial capital, and social and political capital, it may be said that the inheritance of economic inequality in India may consist of the inheritance of economic inequality in India may consist of the inheritance by the janata of no form of capital except their own stock of human capital. There is little or no inheritance from parents of savings or any other form of capital.  Hence the janata are also the “garib lok”, the masses are also the poor folk.

By contrast the bhadralok are also the leisured nation of the subcontinent, with the time and inclination to praise or decry the state of the culture or the economy or the prime minister, to visit or return from the outside world (“baahar”) to the subcontinent or vice versa, to take a walk in the morning or a nap in the afternoon, to express compassion for or embarrassment about the existence of the janata (especially in relation to the foreigner since the bhadralok have to explain both their privileged position relative to the janata and their often underprivileged position relative to the foreigner with whom they desire to consort), to study the janata or lead them in revolution or take measurements of them, and to read, write, edit or publish books such as this one.  The bhadralok are the “respectable people” of the subcontinent, with names, family histories and reputations, literate and often highly educated, bilingual at least, with an inheritance of or illusions about acknowledged places in society.  They inherit from their parents and save for their children physical and financial capital, invest in their human capital, and bestow to them as much social and political capital as they can.  The mercantile and industrial bhadralok own and transfer to their children relatively more physical and financial capital, while the managerial, administrative and professional bhadralok may transfer relatively more social and political capital.  At the apex of both groups is an elite amounting to a few million people, united perhaps by their membership or attempted membership of the post-British social clubs and centres of intellectualism, or foreign universities and the lower middle classes of Britain and North America.

What may be expected in the long run is mobility between the two nations and in both directions.  Through indolence or bad luck, families can fall by a half or a third of a social class each generation, or move in the opposite direction through chance or cunning or enterprise and effort.  It is an essential feature of mass economic development that there will be net mobility upwards in the long run, and an attendant breakdown of social barriers and the gradual assimilation of classes and castes into one another.  Contrary to an assumption of the working classes being united in their despair and contempt for the middle class, and motivated in their desire to bloodily dispose of them, it may be more accurate to say that what unleisured people want most (after employment, food, shelter and clothing) is what they value most at the margin, namely, leisure.  What the working classes desire most may be something like the kind of life as the bourgeoisie.  Let aside there being a potential or open conflict arising from the janata against the bhadralok, the truth of the matter could be there is a desire of the janata to have at least some leisure like the bhadralok.

If this is an accurate assumption, the main source of conflict between the two nations of India or the subcontinent could be different from what is often supposed by many people.  Instead of being revolutionary in nature and deriving from below, the source may be reactionary in nature and amount to resistance from the top.  Like all cartels, the bhadralok may want to preserve their numbers and not look with favour at the prospect of large-scale mass economic development, entailing as this will greater competition on all fronts, the erosion of privilege, the breakdown of social barriers and the assimilation of classes into one another.

The Jacobin/Bolshevik/Maoist method of reducing inequalities was to expropriate physical and financial capital, and decimate social and political capital and all that stands in the way of such destruction.  The upheaval and chaos of such blood-letting leaves a new order which is, or seems, for a moment, more egalitarian than the regime it replaces.  But it also leaves a society without knowledge of its past, alternately enervated by its present and terrified of its future.  Recovery from such a state of near social death has been long and hard and painful, where it has happened at all.  Despite the wishes of a few, India does not seem likely to experience such social death on a national scale, although the temporary effects of terrorism and civil chaos in pockets of the country would seem to be similar.

A more far-sighted method would be by the creation of capital for the janata to increase their sources of income and consumption and thereby reduce the inequality of wealth and political power.  It would mean investment in the only form of capital that the janata have: their own human capital.  It would mean fundamentally a change of focus away from the theoretical and grandiose in the drawing-rooms and corridors of New Delhi (and Washington), and towards the simple and commonsensical: stopping the wastage of the tax-resources; making the currency sound at home and abroad; redirecting public investment towards public goods such as civil justice, roads, fresh water and sanitation; and fostering a civilized rural life, built around village schools with blackboards and chalk, with playgrounds and libraries and hot meals, with all-weather buildings and all-weather roads to their doors.

India today resembles a kind of gigantic closed city with high walls and few gates.  Within the walls are concurrently represented many different ages in the history of man, from pre-historic and early Aryan, to medieval and Moghul, to Dickensian and American, the members of each age having some common and some individual sets of life-expectations, yet all being due to enter the next century together. Outside is the rest of human civilization, as well as the free circulation of gold and foreign exchange.  Nearabouts the gates of the city, and with ability to travel in and out, are the few million of the elite.  If the walls of the city are to be knocked down or at least if the gates opened and kept wide open, it will have to be the elite who do this or consent to have it done.

If it is done properly, after adequate preparation of the economic and political expectations of citizens, there may be many positive results, not only for the economy but also for the culture and civilization of the subcontinent as a whole. The free flow of ideas and opportunities across national borders; the freedom to travel in the world; the free movement of goods and capital; the freedom to save one’s tangible wealth, small as this may be, in whatever form or currency one considers best — these are fundamentally important freedoms which have been denied to most of the people of the subcontinent thus far and yet are taken for granted elsewhere in the world.  There seems little reason to doubt that if such freedoms come to be gradually exercised by the janata there would be a permanent trend of increase in mass income and consumption.

Yet there are genuine questions of sovereignty which have to be anticipated as well.  The consequences of a true opening are not fully or easily foreseeable.  The prompt arrival of new East India Companies may be expected.  Will there be enough competition between them?  Or will the elite come to be further subverted, taking the first Indian Republic with it?  After the long experience of foreign rule and nationalism and independent democracy, is the Indian polity mature enough to survive and gain from such an opening, or will it collapse once again as it did in the eighteenth century?  The spectres of Plassey and Avadh must haunt every Indian nationalist, even as the hopes of a free economy and a progressive culture and an open civilization, beckon from the future.  Is it a silent and implicit fear of this sort which constitutes the only possible rational barrier to greater freedom?  Has the continued poverty been, in effect, the cost of nationalism?  These are hard questions to which answers may not be found easily. It is hoped by the editors that the present volume may engage the citizens and friends of India to reflect upon them….”

From Facebook 7 Sep 2010:

Rajiv Gandhi received this book in manuscript form in hand from me on Sep 18 1990, and it contributed to the origins of India’s 1991 economic reform as has been described elsewhere.  I am delighted to hear his son Rahul has in the last few days also been referring to India as “Two Nations”, rich and poor.  Dr Manmohan Singh received the book itself in hand from me at the Indian Ambassador’s Residence in Washington in Sepember 1993; I am glad to see he too has yesterday mentioned the same “Two Nations” theory that I had applied from Disraeli’s book about Victorian England.

(Yet Another) Memo to Dr Kaushik Basu

Dear Kaushik,

Apropos your reported predictions, I have had to say at Facebook:

Subroto Roy  is appalled the GoI’s Chief Economic Adviser has declared (as the PM and the PM’s Chief Acolyte had  declared in earlier months) that prices are trending downwards stochastically but amused that at least a stochastic (“fluctuating”) trend got mentioned.

Governor Subbarao has been set a small challenge the other day to release asap for public scrutiny the comprehensive macroeconomic model he says he believes the RBI has — which may be  hard if no such model may exist at the RBI.   Nor does your Ministry or anyone else in New Delhi have such a model.  So what is the Government’s precise scientific basis for predicting a slowing of inflation?  Nothing at all?

The Government needs to begin to try to understand that inflation does not slow down in circumstances where real public debt per capita and money supply have been growing exponentially for decades — to the contrary, inflation tends to rise to dangerous heights!  Debauching of  fiat money would hardly have been allowed if the rupee was a hard currency because we would have seen an honest exchange-rate crashing through the floor with this kind of inflationary finance the Government has given us over the decades. There is, sad to say, zero chance of the rupee becoming a hard currency that all one billion Indians may feel confident about so long as such inflationary finance continues unabated.

Cordially yours

Suby

A Small Challenge to the RBI’s Governor Subbarao

The Hon’ble Gov of the Reserve Bank of India Shri D Subbarao

Dear Governor Subbarao,

You said yesterday, April 20 2010, that the Reserve Bank of India has a macroeconomic model which it uses but which you had personally not seen.

I have given two lectures at your august offices, one by invitation of Governor Jalan and Deputy Governor Reddy on April 29 2000 to address the Conference of State Finance Secretaries, the other on May 5 2005 to  address the Chief Economist’s Monetary Economics Seminar.  On both occasions, I had inquired of the RBI’s own models by which I could contrast my own but came to understand there were none.

If since then the RBI has now constructed a macroeconomic model of India’s economy, it is splendid news.

May I request the model be released publicly on the Internet at once, so its specifications of endogenous and exogenous variables, assumed coefficients, and sources of time-series data all may be seen by everyone in the country and abroad?  Scientific scrutiny and replication of results would thus come to be permitted.

I would be especially interested to know the demand for money function that you have used.   I well remember my meeting with the late great Sukhamoy Chakravarty on July 14 1987 at his Planning Commission offices, when he signed and gifted me his last personal copy of the famous Reserve Bank report by the committee he had chaired  and  of which he told me personally Dr Rangarajan had been the key author – that report may have contained the first official discussion of the demand for money function in India.

With cordial regards

Subroto Roy

Memo to Kaushik 

Dr Kaushik Basu, Chief Economic Adviser, Ministry of Finance

Hello Kaushik,

Long time no see.  Happy Holi 2010.

I was glad to see the phrase “the relatively neglected subject of the micro-foundations of macroeconomic policy” mentioned in Chapter 2 of your document for the GoI a few days ago.

But I am unable to see what you could mean by it  because your chapter  seems devoid of any reference  or   allusion to the vast  discussion over decades of the  subject known as the “microeconomic foundations of macroeconomics”. Namely, the attempt to integrate the theory of value (microeconomics) with the theory of money (macroeconomics); or alternatively, the attempt to comprehend aggregate variables like Consumption, Savings, Investment, the Demand for & Supply of Money etc in conceptual terms rooted in theories of constrained optimization by masses of individual people.

It is not an easy task.  Keynes made no explicit attempt at it (recall Joan Robinson’s famous quip) and probably did not have time or patience to try.  Hicks and Patinkin failed, though after valiant efforts.  The modern period on this work began with Clower and Leijonhufvud, followed by the French (like Grandmont), and especially Frank Hahn.   Hahn’s 1976 IMSSS paper “Keynesian Economics and General Equilibrium Theory” is the survey to read, viz., Equilibrium and Macroeconomics and Money, Stability and Growth as well as of course Arrow & Hahn’s General Competitive Analysis.  You may agree that the general theory of value culminated in an important sense in the Arrow-Debreu model of the 1950s — yet that is something in which no money, and hence no macroeconomics, needs to or can really appear.  The hard part is to develop macroeconomic models for policy-discussion which allow for money and public finance while still making some pretence of being rooted in a theory of constrained optimization by individuals, i.e., in microeconomic behaviour.  (E  Roy Weintraub wrote a textbook with “Microfoundations” in its title.)

In the Indian case, I tried to do a little in my Cambridge PhD thesis thirty years ago: “a full frontal assault from the point of view of microeconomic theory on the ‘development planning’ to which everyone routinely declared their fidelity, from New Delhi’s bureaucrats and Oxford’s ‘development’ school to McNamara’s World Bank with its Indian staffers”.    Frank Hahn was very kind to say he thought my “critique of Development Economics was powerful not only on methodological but also on economic theory grounds”.  Some of the results appeared in my December 1982 talk to the AEA’s NYC meetings “Economic Theory & Development Economics” (World Development 1983), and in my 1984 monograph with London’s IEA.  Dr Manmohan Singh received a copy of the latter work in 1986, as well as, in 1993, a published copy of a work presented to Rajiv Gandhi in 1990, Foundations of India’s Political  Economy: Towards an Agenda for the 1990s.

I am glad to see from your Chapter 2 that the GoI now seems to agree with what I had said in 1984 of the need for systems that “locally include direct subsidies to those (whether in rural or urban areas) who are unable to provide any income for themselves…” Your material on the “enabling State” would also find much support in what I said there about the functions of civil government and the need for better, not necessarily more, government. On the other hand, your reliance on the very expensive (Rs.19 billion this year!)  Nandan Nilekani Numbering idea is odd as there seem to me to be insurmountable “incentive-compatibility” problems with that project no matter how much gets spent on it.

Returning to possible “microfoundations of macroeconomics” relevant to the Indian case, you may find of interest

“India’s Macroeconomics” (2007)

“Fiscal Instability” (2007)

“Fallacious Finance” (2007)

“Monetary Integrity and the Rupee” (2008)

“Growth and Government Delusion” (2008)

“India in World Trade & Payments” (2007)

“Our Policy Process” (2007)

“Indian Money and Credit” (2006)

“Indian Money and Banking” (2006)

“Indian Inflation” (2008)

“Growth of Real Income, Money & Prices in India 1869-2004” (2005)

“How to Budget” (2008)

“The Dream Team: A Critique” (2006)

“Against Quackery” (2007)

“Mistaken Macroeconomics” (2009)

These together outline an idea that the link between macroeconomic policy in India and  individual microeconomic budgets of our one billion citizens arises via the “Government Budget Constraint”.  More specifically, the continual deficit-finance indulged in by the GoI for decades has been paid for by invisible taxation of nominal assets, causing the general money-price of real goods and services to rise.  I.e., the GoI’s wild deficit spending over the decades has been paid for by debauching money through inflation.

(The  unrecorded untaxed “black economy” needs a separate chapter altogether, and it seems to me possible it provides enough real income and transactions to be absorbing some of the wilder money supply growth into its hoards.)

India cannot be a major economy of the world until and unless the Rupee  some day becomes a hard currency — for the first time in many decades, indeed perhaps for the first time since the start of fiat money.   It is going to take much more than the GoI inventing a trading symbol for the Rupee!   The appalling state of our government accounting, public finance and monetary policy, caused by the GoI over decades, disallows this from happening any time soon as domestic bank assets (mostly GoI debt, and mostly held by government banks) would inevitably be re-evaluated at world prices foreshadowing a monetary crisis.   Perhaps you will help slow the rot — I trust you will not add to it.

Cordially yours

Suby Roy

Postscript  March 1 2010:   I recalled it as Joan Robinson’s quip, had forgotten it was in fact her quoting Gerald Shove’s quip: “Keynes was not interested in the theory of relative prices. Gerald Shove used to say that Maynard had never spent the twenty minutes necessary to understand the theory of value.” (1963)

see also

My Recent Works, Interviews etc on India’s Money, Public Finance, Banking, Trade, BoP, etc (an incomplete list)

Thoughts on Indian Governance

Subroto Roy believes the great optimism about the Indian Republic that he had felt as a 7-year old boy upon meeting Jawaharlal Nehru at Colombo Airport on Oct 13 1962 (the first days of the surprise Communist Chinese attack on India), has now dissipated, and apart from Nehru’s immediate successor (Lal Bahadur Shastri) all Indian Prime Ministers since then have been gravely, perhaps catastrophically, disappointing.

Subroto Roy thinks President Obama’s informed lawyerly academic approach to the Afghanistan decision, whether or not it has its intended good consequences, has a positive demonstration effect for other capital cities, e.g. New Delhi, where public policy decisions are too often made to appease special interest groups inside a cloud of meaningless rhetoric.

Subroto Roy says of India and China in summary discussion at Edward Hugh’s Wall: “Well, both have massive and energetic populations, each with relatively little capital per head; raising the capital per head with new production and exchange processes leads to growth. (But the nominal economies are weak, public finances are absymal and paper money is out of control.)”

Subroto Roy recalls again Pericles of Athens: “Here each individual is interested not only in his own affairs but in the affairs of the state as well; even those who are mostly occupied with their own business are extremely well-informed on general politics- this is a peculiarity of ours:we do not say that a man who takes no inter…est in politics is a man who minds his own business;we say that he has no business here at all.”

Wage inflation among agricultural workers in India

From Facebook

Subroto Roy finds from Gopa’s data that wage inflation among unskilled agricultural workers in rural India has been at about 6.35% per annum over the last 7 years or so.

Finance Minister Mukherjee deserves a cheer for connecting with economics (though half a cheer gets subtracted)

From Facebook today

Independent India’s Finance Ministers have never in 62 years referred to economic theory or the history of economic thought until Mr Mukherjee delivered the 4th Kadirgamar Memorial Lecture in Colombo yesterday, making the following academic claim:
“As students of economics would understand, economic theory is an evolutionary process and undergoes change with every major crisis. The classical theory gave way to Keynesian economics after the Great Depression of 1930s. Thereafter, there were post-Keynesian and monetarist approaches to economic problems during 1960s to 90s. The present crisis, which has also been called Great Recession, would be another watershed in the evolution of economics and is expected to bring about radical retooling of the theory. The crisis has, in the first place, conclusively established that the pursuit of individual goals do not necessarily lead to public good. Adam Smith’s ‘invisible hand’ cannot guarantee allocation of resources efficiently.”

I might rather count this as intellectual progress to the extent that it at least allows the Government of India’s economists the possibility of moving away from politically-induced dissimulation and instead begin to connect with where I was 25 years ago in my May 1984 monograph published by London’s Institute of Economic Affairs (leave aside my 1976-82 doctoral thesis under Professor Frank Hahn at Cambridge “On liberty and economic growth: preface to a philosophy for India”). As for the Finance Minister saying “The Indian economy has shown remarkable resilience to the crisis because the financial system had no exposure to the toxic assets”, I am afraid he has left unsaid that this is because (a) the rupee is not a hard currency; and (b) India’s banks hold plenty of domestic assets that are “toxic”.

Subroto Roy

Thoughts, words, deeds: My work 1973-2020

This is an incomplete bibliography of my writings, public lectures etc 1973-2020 including citations, reviews, comments. I have been mostly an academic economist who by choice or circumstance over 47 years has had to venture also into science, philosophy, public policy, law, jurisprudence, practical politics, history, international relations, military strategy, financial theory, accounting, management, journalism, literary criticism, psychology, psychoanalysis, theology, aesthetics, biography, children’s fables, etc. If anything unites the seemingly diverse work recorded below it is that I have tried to acquire a grasp of the nature of human reason and then apply this comprehension in practical contexts as simply and clearly as possible. Hence I have ended up following the path of Aristotle, as described in modern times (via Wittgenstein and John Wisdom) by Renford Bambrough. The 2004 public lecture in England, “Science, Religion, Art & the Necessity of Freedom”, also my 2017 “Is ‘Cambridge Philosophy’ dead, in Cambridge? Can it be resurrected, there? Case Study: Renford Bambrough (& Subroto Roy) preceded by decades Cheryl Misak’s thesis on Wittgenstein being linked with Peirce via Ramsey…”

may explain and illustrate all this best. A friend has been kind enough to call me an Academician, which I probably am, though one who really needs his own Academy because the incompetence, greed and mendacity encountered too often in the modern professoriat is dispiriting.

Besides writings and publications printed on paper, there are writings or items not printed on paper — as new media break space, cost and other constraints of traditional publishing. A little repetition and overlap has occurred too. Also in a few cases, e.g., Aldous Huxley’s essay on DH Lawrence, nothing has been done except discover and republish. Several databases have been created and released in the public interest, as have been some rare maps. There is also some biographical and autobiographical material. Several inconsequential errors remain in the text, which shall take time to be rectified as documents come to be rediscovered and collated.

1973

1. “Behavioural study of mus musculus”, Haileybury College, Supervised by J de C Ford-Robertson MA (Oxon). (Due to be published here 2010).

2. “Chemistry at Advanced & Special Level: Student Notes 1972-73” (Due to be published here 2010).

3. “Biology at Advanced & Special Level: Student Notes 1972-73”, (Due to be published here 2010).

4. “Physics at Advanced Level: Student Notes 1972-73”, (Due to be published here 2010).

5. “Revolution: theoria and praxis”, London, mimeo (Due to be published here 2010).

6. “Gandhi vs Marx”, London, mimeo (Due to be published here 2010).

1974

7. “Relevance of downward money-wage rigidity to the problem of maintaining full-employment in the classical and Keynesian models of income determination”, London School of Economics, mimeo (Due to be published here 2010).

8. “Testing aircraft fuels at Shell Finland”.

1975

9. “Oxford Street experiences: down and out in London town”.

10. “SE Region Bulk Distribution Survey”, Unilever, Basingstoke.

11. “Four London poems”, in JCM Paton (ed) New Writing (London, Great Portland Street: International Students House). (Due to be republished here 2010)

12. “On economic growth models and modellers”, London School of Economics, mimeo. (Due to be published here 2010).

1976

13. “World money: system or anarchy?”, lecture to Professor ACL Day’s seminar, London School of Economics, Economics Department, April. (Due to be published here 2010).

14. “A beginner’s guide to some recent developments in monetary theory”, lecture to Professor FH Hahn’s seminar, Cambridge University Economics Department, November 17 (Due to be published here 2010). See also “Announcement of My “Hahn Seminar”, published here June 14 2008.

1977

15. “Inflation and unemployment: a survey”, mimeo, Fitzwilliam College, Cambridge. (Due to be published here 2010).

16. “On short run theories of dual economies”, Cambridge University Economics Department “substantial piece of work” required of first year Research Students. Examiner: DMG Newbery, FBA. (Due to be published here 2010).

1978

17. “Pure theory of developing economies 1 and 2”, Delhi School of Economics mimeo (Due to be published here 2010).

18. “Introduction to some market outcomes under uncertainty”, Delhi School of Economics mimeo (Due to be published here 2010).

19. “On money and development”, Corpus Christi College, Cambridge, mimeo, September. (Due to be published here 2010)

20. “Notes on the Newbery-Stiglitz model of sharecropping”, Corpus Christi College, Cambridge, mimeo November. (Due to be published here 2010).

1979

21. “A theory of rights and economic justice”, Corpus Christi College Cambridge mimeo. (Due to be published here 2010).

22. “Monetary theory and economic development”, Corpus Christi College Cambridge, mimeo (Due to be published here 2010).

23. “Foundations of the case against ‘development planning’”, Corpus Christi College Cambridge, mimeo, November. (Due to be published here 2010).

1979-1989

24. Correspondence with Renford Bambrough (1926-1999), philosopher of St John’s College, Cambridge (Due to be published here 2010).

1980

25. “Models before the monetarist storm”, New Statesman letters

26. “Disciplining rulers and experts”, Corpus Christi College, Cambridge, mimeo. (Due to be published here 2010).

1981

27. “On liberty & economic growth: preface to a philosophy for India”, Cambridge University doctoral thesis, supervisor FH Hahn, FBA; examiners CJ Bliss, FBA; TW Hutchison, FBA (Due to be published here 2010). 27a Response of FA Hayek on a partial draft February 18 1981. 27b Response of Peter Bauer, 1982. 27c Response of Theodore W Schultz, 1983. 27d. Response of Frank Hahn 1985.

1982

28. “Knowledge and freedom in economic theory Parts 1 and 2”, Centre for Study of Public Choice, Virginia Polytechnic Institute & State University, Working Papers.

29. “Economic Theory and Development Economics”. Lecture to American Economic Association, New York, Dec 1982. Panel: RM Solow, HB Chenery, T Weisskopf, P Streeten, G Rosen, S Roy. Published in 29a.

1983

29a “Economic Theory and Development Economics: A Comment”. World Development, 1983. [Citation: Stavros Thefanides “Metamorphosis of Development Economics”, World Development 1988.]

30. “The Political Economy of Trade Policy (Comment on J. Michael Finger)”, Washington DC: Cato Journal, Winter 1983/84. See also 000 “Risk-aversion explains resistance to freer trade”, 2008.

1984

31. “Considerations on Utility, Benevolence and Taxation”, History of Political Economy, 1984. 31a Response of Professor Sir John Hicks May 1 1984.

[Citations: P. Hennipman, “A Tale of Two Schools”, De Economist 1987, “A New Look at the Ordinalist Revolution”, J. Econ. Lit. Mar 1988; P. Rappoport, “Reply to Professor Hennipman”, J. Econ. Lit. Mar 1988; Eugene Smolensky et al “An Application of A Dynamic Cost-of-Living Index to the Evaluation of Changes in Social Welfare”, J. Post-Keynesian Econ.IX.3. 1987.]

32. Pricing, Planning and Politics: A Study of Economic Distortions in India, London: Institute of Economic Affairs, London 1984.

[Citations: Lead editorial of The Times of London May 29 1984, “India’s economy”, Times letters June 16 1984. John Toye “Political Economy & Analysis of Indian Development”, Modern Asian Studies, 22, 1, 1988; John Toye, Dilemmas of Development; D. Wilson, “Privatization of Asia”, The Banker Sep. 1984 etc]. See also 370 “Silver Jubilee of ‘Pricing, Planning and Politics: A Study of Economic Distortions in India’” 2009.

33. Review of Utilitarianism and Beyond, Amartya Sen & Bernard Williams (eds) Public Choice.

34. Review of Limits of Utilitarianism, HB Miller & WH Williams (eds.), Public Choice.

35. Deendayal Upadhyaya lecture “On Government and the Individual in India” (one of four invited lecturers), Washington DC, October 1984.

1987

36. (with one other) “Does the Theory of Logical Types Inform the Theory of Communication?”, Journal of Genetic Psychology., 148 (4), Dec. 1987 [Citation:

37. “Irrelevance of Foreign Aid”, India International Centre Quarterly, Winter 1987.

38. Review of Development Planning by Sukhamoy Chakravarty for Economic Affairs, London 1987.

1988

39. (with Seiji Naya and Pearl Imada) “Introduction” to Lessons in Development: A Comparative Study of Asia and Latin America. San Francisco: Inst. of Economic Growth.

40. “A note on the welfare economics of regional cooperation”, lecture to Asia-Latin America conference, East West Center Honolulu, published 2009.

1989

41. Philosophy of Economics: On the Scope of Reason in Economic Inquiry, London & New York: Routledge (International Library of Philosophy) 1989, paperback 1991. Internet edition 2007. [Reviews & Citations: Research in Economics, 1992; De Economist 1991 & 1992; Manch.Sch. Econ.Studs. 59, 1991; Ethics 101.88 Jul. 1991; Kyklos 43.4 1990; Soc. Science Q. 71.880. Dec.1990; Can. Phil. Rev. 1990; J. Econ. Hist. Sep. 1990; Econ. & Phil. Fall 1990; Econ. Affairs June-July 1990; TLS May 1990; Choice March 1990; J. App.Phil. 1994, M. Blaug: Methodology of Economics, 2nd ed., Cambridge, 1992; Hist. Methods. 27.3, 1994; J. of Inst. & Theoretical Econ.,1994; Jahrbucker fur Nationaleconomie 1994, 573:574. Mark A Lutz in Economics for the Common Good, London: Routledge, 1999, et al]. See also 339 “Apropos Philosophy of Economics”, Comments of Sidney Hook, KJ Arrow, Milton Friedman, TW Schultz, SS Alexander, Max Black, Renford Bambrough, John Gray et al.

42. Foreword to Essays on the Political Economy by James M. Buchanan, Honolulu: University of Hawaii Press 1989.

43. “Modern Political Economy of India”, edited by Subroto Roy & William E James, Hawaii mimeo May 21 1989. This published for the first time a November 1955 memorandum to the Government of India by Milton Friedman. See also 43a, 53.

43a. Preface to “Milton Friedman’s extempore comments at the 1989 Hawaii conference: on India, Israel, Palestine, the USA, Debt and its uses, Erhardt abolishing exchange controls, Etc”, May 22 1989, published here for the first time October 31 2008.

44. Milton Friedman’s defence of my work in 1989.

45. Theodore W. Schultz’s defence of Philosophy of Economics

1990

46. “Letter to Judge Evelyn Lance: On A Case Study in Private International Law” (Due to be published here in 2010).

47-49. Selections from advisory work on economic policy etc for Rajiv Gandhi, Leader of the Opposition in the Parliament of India, published in 47a-49a.

1991

41b Philosophy of Economics: On the Scope of Reason in Economic Inquiry, Paperback edition.

50. “Conversations and correspondence with Rajiv Gandhi during the Gulf war, January 1991” (Due to be published here 2010).

47a. A Memo to Rajiv I: Stronger Secular Middle”, The Statesman, Jul 31 1991.

48a “A Memo to Rajiv II: Saving India’s Prestige”, The Statesman, Aug 1 1991.

49a “A Memo to Rajiv III: Salvation in Penny Capitalism”, The Statesman, Aug 2 1991 47b-49b “Three Memoranda to Rajiv Gandhi 1990-91”, 2007 republication here.

51. “Constitution for a Second Indian Republic”, The Saturday Statesman, April 20 1991. Republished here 2009.

52. “On the Art of Government: Experts, Party, Cabinet and Bureaucracy”, New Delhi mimeo March 25 1991, published here July 00 2009.

1992

53. Foundations of India’s Political Economy: Towards an Agenda for the 1990s Edited and with an Introduction by Subroto Roy & William E. James New Delhi, London, Newbury Park: Sage: 1992. Citation: Milton and Rose Friedman Two Lucky People (Chicago 1998), pp. 268-269.

54. Foundations of Pakistan’s Political Economy: Towards an Agenda for the 1990s Edited and with an Introduction by William E. James & Subroto Roy, Hawaii MS 1989, Sage: 1992, Karachi: Oxford 1993.

Reviews of 53 & 54 include: Bus. Today, Mar-Apr 1992; Political Studies March 1995; Econ Times 21 March 1993; Pakistan Development Review 1992. Hindustan Times 11 July 1992. Pacific Affairs 1993; Hindu 21 March 1993, 15 June 1993; Pakistan News International 12 June 1993. Book Reviews March 1993; Deccan Herald 2 May 1993; Pol.Econ.J. Ind. 1992. Fin Express 13 September 1992; Statesman 16 Jan. 1993. J. Royal Soc Asian Aff. 1994, J. Contemporary Asia, 1994 etc.

55. “Fundamental Problems of the Economies of India and Pakistan”, World Bank, Washington, mimeo (Due to be published here 2010).

56.“The Road to Stagflation: The Coming Dirigisme in America, or, America, beware thy economists!, or Zen and Clintonomics,” Washington DC, Broad Branch Terrace, mimeo, November 17.

1993

57. “Exchange-rates and manufactured exports of South Asia”, IMF Washington DC mimeo. Published in part in 2007-2008 as 58-62:

58. “Path of the Indian Rupee 1947-1993”, 2008.

59. “Path of the Pakistan Rupee 1947-1993”, 2008.

60. “Path of the Sri Lankan Rupee 1948-1993”, 2008.

61. “Path of the Bangladesh Taka 1972-1993”, 2008.

62. “India, Pakistan, Sri Lanka, Bangladesh Manufactured Exports, IMF Washington DC mimeo”, published 2007.

63. “Economic Assessment of US-India Merchandise Trade”, Arlington, Virginia, mimeo, published in slight part in Indo-US Trade & Economic Cooperation, ICRIER New Delhi, 1995, and in whole 2007.

64. “Towards an Economic Solution for Kashmir”, mimeo, Arlington, Virginia, circulated in Washington DC 1993-1995, cf 82, 111 infra. Comment of Selig Harrison.

1994

65. “Comment on Indonesia”, in The Political Economy of Policy Reform edited by John Williamson, Washington, DC: Institute for International Economics.

66a “Gold reserves & the gold price in anticipation of Central Bank behaviour”, Greenwich, Connecticut, mimeo. 67b. “Portfolio optimization and foreign currency exposure hedging” Greenwich, Connecticut mimeo.

1995

68. “On the logic and commonsense of debt and payments crises: How to avoid another Mexico in India and Pakistan”, Scarsdale, NY, mimeo, May 1.

69. “Policies for Young India”, Scarsdale, NY, pp. 350, manuscript.

1996

70. US Supreme Court documents, published in part in 2008 as “Become a US Supreme Court Justice!” 70a, 70b (Due to be published in full here in 2010 as Roy vs University of Hawaii, 1989- including the expert testimonies of Milton Friedman and Theodore W Schultz.).

71. “Key problems of macroeconomic management facing the new Indian Government”, May 17. Scarsdale, New York, mimeo. (Due to be published here 2010).

72. “Preventing a collapse of the rupee”, IIT Kharagpur lecture July 16 1996.

73. “The Economist’s Representation of Technological Knowledge”, Vishvesvaraya lecture to the Institution of Engineers, September 15 1996, IIT Kharagpur.

1997

74. “Union and State Budgets in India”, lecture at the World Bank, Washington DC, May 00.

75. “State Budgets in India”, IIT Kharagpur mimeo, June 6.

1998

76. “Transparency and Economic Policy-Making: An address to the Asia-Pacific Public Relations Conference” (panel on Transparency chaired by CR Irani) Jan 30 1998, published here 2008.

77. Theodore W. Schultz 1902-1998, Feb 25.

78. “The Economic View of Human Resources”, address to a regional conference on human resources, IIT Kharagpur.

79. “Management accounting”, lecture at Lal Bahadur Shastri Academy, Mussourie,

80a “The Original Reformer”, Outlook letters, Jan 23 1998

81. “Recent Developments in Modern Finance”, IIM Bangalore Review, 10, 1 & 2, Jan.-Jun 1998. Reprinted as “From the Management Guru’s Classroom”: 81a “An introduction to derivatives”, Business Standard/Financial Times, Bombay 18 Apr 1999; 81b “Options in the future, Apr 25 1999; 81c “What is hedging?”, May 2 1999; 81d “Teaching computers to think”, May 9 1999.

82. “Towards an Economic Solution for Kashmir”, Jun 22 1998, lecture at Heritage Foundation, Washington DC. Cf 111 Dec 2005.

83. “Sixteen Currencies for India: A Reverse Euro Model for Monetary & Fiscal Efficacy”, Lecture at the Institute of Economic Affairs, London, June 29 1998. Due to be published here 2010.

84. “Fable of the Fox, the Farmer, and the Would-Be Tailors”, October (Published here July 27 2009).

85. “A Common Man’s Guide to Pricing Financial Derivatives”, Lecture to “National Seminar on Derivatives”, Xavier Labour Research Institute, Jamshedpur, Dec. 16 1998. See 98.

1999

86. “An Analysis of Pakistan’s War-Winning Strategy: Are We Ready for This?”, IIT Kharagpur mimeo, published in part as 86a.“Was a Pakistani Grand Strategy Discerned in Time by India?” New Delhi: Security & Political Risk Analysis Bulletin, July 1999, Kargil issue. See also 000

80b. “The Original Reformer”, Outlook letters, Sep 13 1999.

2000

87. “On Freedom & the Scientific Point of View”, SN Bose National Centre for Basic Sciences, Feb 17 2000. Cf 100 below.

88. “Liberalism and Indian economic policy”, lecture at IIM Calcutta, Indian Liberal Group Meetings Devlali, Hyderabad; also Keynote address to UGC Seminar Guntur, March 30 2002. (Due to be published here 2010).

89. “Towards a Highly Transparent Fiscal & Monetary Framework for India’s Union & State Governments”, Invited address to Conference of State Finance Secretaries, Reserve Bank of India, Bombay, April 29, 2000. Published 2008.

90. “On the Economics of Information Technology”, two lectures at the Indian Institute of Information Technology, Bangalore, Nov 10-11, 2000.

91. Review of A New World by Amit Chaudhuri in Literary Criterion, Mysore.

2001

92. Review of AD Shroff: Titan of Finance and Free Enterprise by Sucheta Dalal, Freedom First., January.

93. “Encounter with Rajiv Gandhi: On the Origins of the 1991 Economic Reform”, Freedom First, October. See also 93a in 2005 and 93b in 2007.

94. “A General Theory of Globalization & Modern Terrorism with Special Reference to September 11”, a keynote address to the Council for Asian Liberals & Democrats, Manila, Philippines, 16 Nov. 2001. Published as 91a.

95. “The Case for and against The Satanic Verses: Diatribe and Dialectic as Art”, Dec 22 republished in print 95a The Statesman Festival Volume, 2006.

2002

94a “A General Theory of Globalization & Modern Terrorism with Special Reference to September 11”, in September 11 & Political Freedom in Asia, eds. Johannen, Smith & Gomez, Singapore 2002.

2002-2010

96. “Recording vivid dreams: Freud’s advice in exploring the Unconscious Mind” (Due to be published here in 2010).

2003

97. “Key principles of government accounting and audit”, IIT Kharagpur mimeo.

98. “Derivative pricing & other topics in financial theory: a student’s complete lecture notes” (Due to be published here in 2010).

2004

99. TV Interview by BBC, Oxford, after May 2004 General Election in India.

100. “Collapse of the Global Conversation”, International Institute for Asian Studies, Leiden, Netherlands, Jul 2004.

101. “Science, Religion, Art & the Necessity of Freedom”, a public lecture, University of Buckingham, UK, August 24 2004. Published here 2007.

2005

93a Rajiv Gandhi and the Origins of India’s 1991 Economic Reform (this was the full story; it appeared in print for the first time in The Statesman Festival Volume 2007).

102. “Can India become an economic superpower (or will there be a monetary meltdown)?” Cardiff University Institute of Applied Macroeconomics Monetary Economics Seminar, April 13, Institute of Economic Affairs, London, April 27, Reserve Bank of India, Bombay, Chief Economist’s Seminar on Monetary Economics, May 5.

103. Margaret Thatcher’s Revolution: How it Happened and What it Meant, Edited and with an Introduction by Subroto Roy & John Clarke, London & New York: Continuum, 2005; paperback 2006; French translation by Florian Bay, 2007.

104. “Iqbal & Jinnah vs Rahmat Ali in Pakistan’s Creation”, Dawn, Karachi, Sep 3.

105. “The Mitrokhin Archives II from an Indian Perspective: A Review Article”, The Statesman, Perspective Page, Oct 11 .

106. “After the Verdict”, The Statesman, Editorial Page, Oct 20.

107. “US Espionage Failures”, The Statesman, Perspective Page, Oct 26

108. “Waffle But No Models of Monetary Policy”, The Statesman, Perspective Page, Oct 30.

109. “On Hindus and Muslims”, The Statesman, Perspective Page, Nov 6.

110. “Assessing Vajpayee: Hindutva True and False”, The Statesman, Editorial Page, Nov 13-14″.

111. “Fiction from the India Economic Summit”, The Statesman, Front Page, Nov 29.

112. “Solving Kashmir: On an Application of Reason”, The Statesman Editorial Page

I. “Give the Hurriyat et al Indian Green Cards”, Dec 1

II. “Choice of Nationality under Full Information”, Dec 2

III. “Of Flags and Consulates in Gilgit etc”, Dec 3.

2006

113. “The Dream Team: A Critique”, The Statesman Editorial Page

I : New Delhi’s Consensus (Manmohantekidambaromics), Jan 6

II: Money, Convertibility, Inflationary Deficit Financing, Jan 7

III: Rule of Law, Transparency, Government Accounting, Jan 8.

114. “Unaccountable Delhi: India’s Separation of Powers’ Doctrine”, The Statesman, Jan 13.

115. “Communists and Constitutions”, The Statesman, Editorial Page, Jan 22.

116. “Diplomatic Wisdom”, The Statesman, Editorial Page, Jan 31.

117. “Mendacity & the Government Budget Constraint”, The Statesman, Front Page Feb 3.

118. “Of Graven Images”, The Statesman, Editorial Page, Feb5.

119. “Separation of Powers, Parts 1-2”, The Statesman, Editorial Pages Feb 12-13.

120. “Public Debt, Government Fantasy”, The Statesman, Front Page Editorial Comment, Feb 22.

121. “War or Peace Parts 1-2”, The Statesman, Editorial Page, Feb 23-24.

122. “Can You Handle This Brief, Mr Chidambaram?” The Statesman, Front Page Feb 26.

123. “A Downpayment On the Taj Mahal Anyone?”, The Statesman, Front Page Comment on the Budget 2006-2007, Mar 1.

124. “Atoms for Peace (or War)”, The Sunday Statesman, Editorial Page Mar 5.

125. “Imperialism Redux: Business, Energy, Weapons & Foreign Policy”, The Statesman, Editorial Page, Mar 14.

126. “Logic of Democracy”, The Statesman, Editorial Page, Mar 30.

127. “Towards an Energy Policy”, The Sunday Statesman, Editorial Page, Apr 2.

128. “Iran’s Nationalism”, The Statesman, Editorial Page, Apr 6.

129. “A Modern Military”, The Sunday Statesman, Editorial Page, Apr 16.

130. “On Money & Banking”, The Sunday Statesman, Editorial Page, Apr 23.

131. “Lessons for India from Nepal’s Revolution”, The Statesman, Front Page Apr 26.

132. “Revisionist Flattery (Inder Malhotra’s Indira Gandhi: A Review Article)”, The Sunday Statesman, May 7.

133. “Modern World History”, The Sunday Statesman Editorial Page, May 7.

134. “Argumentative Indians: A Conversation with Professor Amartya Sen on Philosophy, Identity and Islam,” The Sunday Statesman, May 14 2006. “A Philosophical Conversation between Professor Sen and Dr Roy”, 2008. Translated into Bengali by AA and published in 00.

135. “The Politics of Dr Singh”, The Sunday Statesman, Editorial Page, May 21.

136. “Corporate Governance & the Principal-Agent Problem”, lecture at a conference on corporate governance, Kolkata May 31. Published here 2008.

137. “Pakistan’s Allies Parts 1-2”, The Sunday Statesman, Editorial Page, Jun 4-5.

138. “Law, Justice and J&K Parts 1-2”, The Sunday Statesman, Editorial Page, Jul 2, The Statesman Editorial Page Jul 3.

139. “The Greatest Pashtun (Khan Abdul Ghaffar Khan)”, The Sunday Statesman, Editorial Page, Jul 16.

140. “Understanding Pakistan Parts 1-2”, The Sunday Statesman, Editorial Page, Jul 30, The Statesman Editorial Page Jul 31.

141. “Indian Money and Credit”, The Sunday Statesman, Editorial Page, Aug 6.

142. “India’s Moon Mission”, The Sunday Statesman, Editorial Page, Aug 13.

143. “Jaswant’s Journeyings: A Review Article”, The Sunday Statesman Magazine, Aug 27.

144. “Our Energy Interests, Parts 1-2”, The Sunday Statesman, Editorial Page, Aug 27, The Statesman Editorial Page Aug 28.

145. “Is Balochistan Doomed?”, The Sunday Statesman, Editorial Page, Sep 3 2006.

146. “Racism New and Old”, The Statesman, Editorial Page, Sep 8 2006

147. “Political Economy of India’s Energy Policy”, address to KAF-TERI conference, Goa Oct 7, published in 147a.

148. “New Foreign Policy? Seven phases of Indian foreign policy may be identifiable since Nehru”, Parts 1-2, The Sunday Statesman, Oct 8, The Statesman Oct 9.

149. “Justice & Afzal: There is a difference between law and equity (or natural justice). The power of pardon is an equitable power. Commuting a death-sentence is a partial pardon”, The Sunday Statesman Editorial Page Oct 14

150. “Non-existent liberals (On a Liberal Party for India)”, The Sunday Statesman Editorial Page Oct 22.

151. “History of Jammu & Kashmir Parts 1-2”, The Sunday Statesman, Oct 29, The Statesman Oct 30, Editorial Page.

152. “American Democracy: Does America need a Prime Minister and a longer-lived Legislature?”, The Sunday Statesman Nov 5.

153. “Milton Friedman A Man of Reason 1912-2006”, The Statesman Perspective Page, Nov 22.

154. “Postscript to Milton Friedman Mahalanobis’s Plan (The Mahalanobis-Nehru “Second Plan”) The Statesman Front Page Nov 22.

155. “Mob Violence and Psychology”, Dec 10, The Statesman, Editorial Page.

156. “What To Tell Musharraf: Peace Is Impossible Without Non-Aggressive Pakistani Intentions”, The Statesman Editorial Page Dec 15.

157. “Land, Liberty and Value: Government must act in good faith treating all citizens equally – not favouring organised business lobbies and organised labour over an unorganised peasantry”, The Sunday Statesman Editorial Page Dec 31.

2007

158. “Hypocrisy of the CPI-M: Political Collapse In Bengal: A Mid-Term Election/Referendum Is Necessary”, The Statesman, Editorial Page, Jan 9.

159. “On Land-Grabbing: Dr Singh’s India, Buddhadeb’s Bengal, Modi’s Gujarat have notorious US, Soviet and Chinese examples to follow ~ distracting from the country’s real economic problems,” The Sunday Statesman, Editorial Page Jan 14.

160. “India’s Macroeconomics: Real growth has steadily occurred because India has shared the world’s technological progress. But bad fiscal, monetary policies over decades have led to monetary weakness and capital flight” The Statesman Editorial Page Jan 20.

161. “Fiscal Instability: Interest payments quickly suck dry every year’s Budget. And rolling over old public debt means that Government Borrowing in fact much exceeds the Fiscal Deficit”, The Sunday Statesman, Editorial Page, Feb 4.

162. “Our trade and payments Parts 1-2” (“India in World Trade and Payments”),The Sunday Statesman, Feb 11 2007, The Statesman, Feb 12 2007.

163. “Our Policy Process: Self-Styled “Planners” Have Controlled India’s Paper Money For Decades,” The Statesman, Editorial Page, Feb 20.

164. “Bengal’s Finances”, The Sunday Statesman Editorial Page, Feb 25.

165. “Fallacious Finance: Congress, BJP, CPI-M may be leading India to Hyperinflation” The Statesman Editorial Page Mar 5.

166. “Uttar Pradesh Polity and Finance: A Responsible New Govt May Want To Declare A Financial Emergency” The Statesman Editorial Page, Mar 24

167. “A scam in the making” in The Sunday Statesman Front Page Apr 1 2007, published here in full as “Swindling India”.

168. “Maharashtra’s Money: Those Who Are Part Of The Problem Are Unlikely To Be A Part Of Its Solution”, The Statesman Editorial Page Apr 24.

147a. “Political Economy of Energy Policy” in India and Energy Security edited by Anant Sudarshan and Ligia Noronha, Konrad Adenauer Stiftung, New Delhi 2007.

169. “Presidential Qualities: Simplicity, Genuine Achievement Are Desirable; Political Ambition Is Not”, The Statesman, Editorial Page, May 8.

170. “We & Our Neighbours: Pakistanis And Bangladeshis Would Do Well To Learn From Sheikh Abdullah”, The Statesman, Editorial Page May 15.

171. “On Indian Nationhood: From Tamils To Kashmiris And Assamese And Mizos To Sikhs And Goans”, The Statesman, Editorial Page, May 25.

172. A Current Example of the Working of the Unconscious Mind, May 26.

173. Where I would have gone if I was Osama Bin Laden, May 31.

174. “US election ’08:America’s Presidential Campaign Seems Destined To Be Focussed On Iraq”, The Statesman, Editorial Page, June 1.

175. “Home Team Advantage: On US-Iran talks and Sunni-Shia subtleties: Tehran must transcend its revolution and endorse the principle that the House of Islam has many mansions”, The Sunday Statesman Editorial Page, June 3

176. “Unhealthy Delhi: When will normal political philosophy replace personality cults?”, The Statesman, Editorial Page, June 11.

177. “American Turmoil: A Vice-Presidential Coup – And Now a Grassroots Counterrevolution?”, The Statesman, Editorial Page, June 18

178. “Political Paralysis: India has yet to develop normal conservative, liberal and socialist parties. The Nice-Housing-Effect and a little game-theory may explain the current stagnation”, The Sunday Statesman, Editorial Page, June 24.

179. “Has America Lost? War Doctrines Of Kutusov vs Clausewitz May Help Explain Iraq War”, The Statesman, Editorial Page, July 3.

180. “Lal Masjid ≠ Golden Temple: Wide differences are revealed between contemporary Pakistan and India by these two superficially similar military assaults on armed religious civilians”, The Sunday Statesman, Editorial Page July 15

181. “Political Stonewalling: Only Transparency Can Improve Institutions”, The Statesman, Editorial Page July 20.

182. “Gold standard etc: Fixed versus flexible exchange rates”, July 21.

183. “US Pakistan-India Policy: Delhi & Islamabad Still Look West In Defining Their Relationship”, The Statesman, Editorial Page, July 27.

184. “Works of DH Lawrence” July 30

185. “An Open Letter to Professor Amartya Sen about Singur etc”, The Statesman, Editorial Page, July 31.

186. “Martin Buber on Palestine and Israel (with Postscript)”, Aug 4.

187. “Auguste Rodin on Nature, Art, Beauty, Women and Love”, Aug 7.

188. “Saving Pakistan: A Physicist/Political Philosopher May Represent Iqbal’s “Spirit of Modern Times”, The Statesman, Editorial Page, Aug 13.

189. Letter to Forbes.com 16 Aug.

190. “Need for Clarity: A poorly drafted treaty driven by business motives is a recipe for international misunderstanding”, The Sunday Statesman, Editorial Page, Aug 19.

191. “No Marxist MBAs? An amicus curiae brief for the Hon’ble High Court”, The Statesman, FrontPage, Aug 29.

192. On Lawrence, Sep 4.

193. Dalai Lama’s Return: In the tradition of Gandhi, King, Mandela, Sep 11.

194. Of JC Bose, Patrick Geddes & the Leaf-World, Sep 12.

195. “Against Quackery: Manmohan and Sonia have violated Rajiv Gandhi’s intended reforms; the Communists have been appeased or bought; the BJP is incompetent Parts 1-2”, in The Sunday Statesman and The Statesman, Editorial Pages of Sep 23-24.

196. Karl Georg Zinn’s 1994 Review of Philosophy of Economics, Sep 26.

197. DH Lawrence’s Phoenix, Oct 3.

93b. “Rajiv Gandhi and the Origins of India’s 1991 Economic Reform”, Statesman Festival Volume.

198. “Iran, America, Iraq: Bush’s post-Saddam Saddamism — one flip-flop too many?”, The Statesman, Editorial Page, Oct 16.

199. “Understanding China: The World Needs to Ask China to Find Her True Higher Self”, The Statesman, Editorial Page, Oct 22.

200. “India-USA interests: Elements of a serious Indian foreign policy”, The Statesman, Editorial Page, Oct 30.

201. “China’s India Aggression : German Historians Discover Logic Behind Communist Military Strategy”, The Statesman, Editorial Page Special Article, Nov 5.

202. Sonia’s Lying Courtier (with Postscript), Nov 25. See also 2014

203. “Surrender or Fight? War is not a cricket match or Bollywood movie. Can India fight China if it must?” The Statesman, Dec 4, Editorial Page.

204. Hutton and Desai: United in Error Dec 14

205. “China’s Commonwealth: Freedom is the Road to Resolving Taiwan, Tibet, Sinkiang”, The Statesman, Dec 17.

2008

206. “Nixon & Mao vs India: How American foreign policy did a U-turn about Communist China’s India aggression. The Government of India should publish its official history of the 1962 war.” The Sunday Statesman, Jan 6, The Statesman Jan 7 Editorial Page.

207. “Lessons from the 1962 War: Beginnings of a solution to the long-standing border problem: there are distinct Tibetan, Chinese and Indian points of view that need to be mutually comprehended”, The Sunday Statesman, January 13 2008.

208. “Our Dismal Politics: Will Independent India Survive Until 2047?”, The Statesman Editorial Page, Feb 1.

209. Median Voter Model of India’s Electorate Feb 7.

210. “Anarchy in Bengal: Intra-Left bandh marks the final unravelling of “Brand Buddha””, The Sunday Statesman, Editorial Page, Feb 10.

211. Fifty years since my third birthday: on life and death.

212. “Pakistan’s Kashmir obsession: Sheikh Abdullah Relied In Politics On The French Constitution, Not Islam”, The Statesman, Editorial Page, Feb 16.

213. A Note on the Indian Policy Process Feb 21.

214. “Growth & Government Delusion: Progress Comes From Learning, Enterprise, Exchange, Not The Parasitic State”, The Statesman, Editorial Page, Feb 22.

215. “How to Budget: Thrift, Not Theft, Needs to Guide Our Public Finances”, The Statesman, Editorial Page, Feb 26.

216. “India’s Budget Process (in Theory)”, The Statesman, Front Page Feb 29.

217. “Irresponsible Governance: Congress, BJP, Communists, BSP, Sena Etc Reveal Equally Bad Traits”, The Statesman, Editorial Page, March 4.

218. “American Politics: Contest Between Obama And Clinton Affects The World”, The Statesman, Editorial Page, March 11.

219. “China’s India Example: Tibet, Xinjiang May Not Be Assimilated Like Inner Mongolia And Manchuria”, The Statesman, Editorial Page, March 25.

220. “Taxation of India’s Professional Cricket: A Proposal”, The Statesman, Editorial Page, April 1.

221. “Two cheers for Pakistan!”, The Statesman, Editorial Page, April 7.

222. “Indian Inflation: Upside Down Economics From The New Delhi Establishment Parts 1-2”, The Statesman, Editorial Page, April 15-16.

223. “Assessing Manmohan: The Doctor of Deficit Finance should realise the currency is at stake”, The Statesman, Editorial Page Apr 25.

224. John Wisdom, Renford Bambrough: Main Philosophical Works, May 8.

225. “All India wept”: On the death of Rajiv Gandhi, May 21.

226. “China’s force and diplomacy: The need for realism in India” The Statesman, Editorial Page May 31.

227. Serendipity and the China-Tibet-India border problem June 6

228. “Leadership vacuum: Time & Tide Wait For No One In Politics: India Trails Pakistan & Nepal!”, The Statesman Editorial Page June 7.

229. My meeting Jawaharlal Nehru Oct13 1962

230. Manindranath Roy 1891-1958

231. Surendranath Roy 1860-1929

232. The Roys of Behala 1928.

233. Sarat Chandra visits Surendranath Roy 1927

234. Nuksaan-Faida Analysis = Cost-Benefit Analysis in Hindi/Urdu Jun 30

235. One of many reasons John R Hicks was a great economist July 3

236. My father, Indian diplomat, in the Shah’s Tehran 1954-57 July 8

237 Distribution of Govt of India Expenditure (Net of Operational Income) 1995 July 27

238. Growth of Real Income, Money & Prices in India 1869-2008, July 28.

239. Communism from Social Democracy? But not in India or China! July 29

240. Death of Solzhenitsyn, Aug. 3

240a. Tolstoy on Science and Art, Aug 4.

241. “Reddy’s reckoning: Where should India’s real interest rate be relative to the world?” Business Standard Aug 10

242. “Rangarajan Effect”, Business Standard Aug 24

243. My grandfather’s death in Ottawa 50 years ago today Sep 3

244. My books in the Library of Congress and British Library Sep 12

245. On Jimmy Carter & the “India-US Nuclear Deal”, Sep 12

246. My father after presenting his credentials to President Kekkonen of Finland Sep 14 1973.

247. “October 1929? Not!”, Business Standard, Sep 18.

248. “MK Gandhi, SN Roy, MA Jinnah in March 1919: Primary education legislation in a time of protest”

249. 122 sensible American economists Sept 26

250. Govt of India: Please call in the BBC and ask them a question Sep 27

251. “Monetary Integrity and the Rupee: Three British Raj relics have dominated our macroeconomic policy-making” Business Standard Sep 28.

252a. Rabindranath’s daughter writes to her friend my grandmother Oct 5

252b. A Literary Find: Modern Poetry in Bengal, Oct 6.

253. Sarat writes to Manindranath 1931, Oct 12

254. Origins of India’s Constitutional Politics 1913

255. Indira Gandhi in Paris, 1971

256. How the Liabilities/Assets Ratio of Indian Banks Changed from 84% in 1970 to 108% in 1998, October 20

257a. My Subjective Probabilities on India’s Moon Mission Oct 21

258. Complete History of Mankind’s Moon Missions: An Indian Citizen’s Letter to ISRO’s Chairman, Oct 22.

259. Would not a few million new immigrants solve America’s mortgage crisis? Oct 26

260. “America’s divided economists”, Business Standard Oct 26

261. One tiny prediction about the Obama Administration, Nov 5

262. Rai Bahadur Umbika Churn Rai, 1827-1902, Nov 7 2008

263. Jawaharlal Nehru invites my father to the Mountbatten Farewell Nov 7 2008

70a. “Become a US Supreme Court Justice! (Explorations in the Rule of Law in America) Preface” Nov 9

70b. “Become a US Supreme Court Justice! (Explorations in the Rule of Law in America)” Nov 9.

257b. Neglecting technological progress was the basis of my pessimism about Chandrayaan, Nov 9.

264. Of a new New Delhi myth and the success of the University of Hawaii 1986-1992 Pakistan project Nov 15

265. Pre-Partition Indian Secularism Case-Study: Fuzlul Huq and Manindranath Roy Nov 16

266. Do President-elect Obama’s Pakistan specialists suppose Maulana Azad, Dr Zakir Hussain, Sheikh Abdullah were Pakistanis (or that Sheikh Mujib wanted to remain one)? Nov 18

267. Jews have never been killed in India for being Jews until this sad day, Nov 28.

268. In international law, Pakistan has been the perpetrator, India the victim of aggression in Mumbai, Nov 30.

269. The Indian Revolution, Dec 1.

270Habeas Corpus: a captured terrorist mass-murderer tells a magistrate he has not been mistreated by Mumbai’s police Dec 3

271. India’s Muslim Voices (Or, Let us be clear the Pakistan-India or Kashmir conflicts have not been Muslim-Hindu conflicts so much as intra-Muslim conflicts about Muslim identity and self-knowledge on the Indian subcontinent), Dec 4

272. “Anger Management” needed? An Oxford DPhil recommends Pakistan launch a nuclear first strike against India within minutes of war, Dec 5.

273. A Quick Comparison Between the September 11 2001 NYC-Washington attacks and the November 26-28 2008 Mumbai Massacres (An Application of the Case-by-Case Philosophical Technique of Wittgenstein, Wisdom and Bambrough), Dec 6

274. Dr Rice finally gets it right (and maybe Mrs Clinton will too) Dec 7

275. Will the Government of India’s new macroeconomic policy dampen or worsen the business-cycle (if such a cycle exists at all)? No one knows! “Where ignorance is bliss, ‘Tis folly to be wise.” Dec 7

276. Pump-priming for car-dealers: Keynes groans in his grave (If evidence was needed of the intellectual dishonesty of New Delhi’s new macroeconomic policy, here it is) Dec 9.

277. Congratulations to Mumbai’s Police: capturing a terrorist, affording him his Habeas Corpus rights, getting him to confess within the Rule of Law, sets a new world standard Dec 10

278. Two cheers — wait, let’s make that one cheer — for America’s Justice Department, Dec 10

279. Will Pakistan accept the bodies of nine dead terrorists who came from Pakistan to Mumbai? If so, let there be a hand-over at the Wagah border, Dec 11.

280. Kasab was a stupid, ignorant, misguided youth, manufactured by Pakistan’s terrorist masterminds into becoming a mass-murdering robot: Mahatma Gandhi’s India should punish him, get him to repent if he wishes, then perhaps rehabilitate him as a potent weapon against Pakistani terrorism Dec 12.

281. Pakistan’s New Delhi Embassy should ask for “Consular Access” to nine dead terrorists in a Mumbai morgue before asking to meet Kasab, Dec 13

282. An Indian Reply to President Zardari: Rewarding Pakistan for bad behaviour leads to schizophrenic relationships Dec 19

283. Is my prediction about Caroline Kennedy becoming US Ambassador to Britain going to be correct? Dec 27

284. Chandrayaan adds a little good cheer! Well done, ISRO!, Dec 28

285. How sad that “Slumdog millionaire” is SO disappointing! Dec 31

289. (with Claude Arpi) “Transparency & history: India’s archives must be opened to world standards” Business Standard New Delhi Dec 31, 2008, published here Jan 1 .

2009

290. A basis of India-Pakistan cooperation on the Mumbai massacres: the ten Pakistani terrorists started off as pirates and the Al-Huseini is a pirate ship Jan 1.

291. India’s “pork-barrel politics” needs a nice (vegetarian) Hindi name! “Teli/oily politics” perhaps? (And are we next going to see a Bill of Rights for Lobbyists?) Jan 3

292. My (armchair) experience of the 1999 Kargil war (Or, “Actionable Intelligence” in the Internet age: How the Kargil effort got a little help from a desktop) Jan 5

293. How Jammu & Kashmir’s Chief Minister Omar Abdullah can become a worthy winner of the Nobel Peace Prize: An Open Letter, Jan 7

294. Could the Satyam/PwC fraud be the visible part of an iceberg? Where are India’s “Generally Accepted Accounting Principles”? Isn’t governance rather poor all over corporate India? Bad public finance may be a root cause Jan 8

295. Satyam does not exist: it is bankrupt, broke, kaput. Which part of this does the new “management team” not get? The assets belong to Satyam’s creditors. Jan 8

296. Jews are massacred in Mumbai and now Jews commit a massacre in Gaza! Jan 9

297. And now for the Great Satyam Whitewash/Cover-Up/Public Subsidy! The wrong Minister appoints the wrong new Board who, probably, will choose the wrong policy Jan 12

298. Letter to Wei Jingsheng Jan 14

299. Memo to the Hon’ble Attorneys General of Pakistan & India: How to jointly prosecute the Mumbai massacre perpetrators most expeditiously Jan 16

300. Satyam and IT-firms in general may be good candidates to become “Labour-Managed” firms Jan 18

301. “Yes we might be able to do that. Perhaps we ought to. But again, perhaps we ought not to, let me think about it…. Most important is Cromwell’s advice: Think it possible we may be mistaken!” Jan 20.

302. RAND’s study of the Mumbai attacks Jan 25

303. Didn’t Dr Obama (the new American President’s late father) once publish an article in Harvard’s Quarterly Journal of Economics? (Or did he?) Jan 25.

304. “A Dialogue in Macroeconomics” 1989 etc: sundry thoughts on US economic policy discourse Jan 30

305. American Voices: A Brief Popular History of the United States in 20 You-Tube Music Videos Feb 5

306. Jaladhar Sen writes to Manindranath at Surendranath’s death, Feb 23

307. Pakistani expansionism: India and the world need to beware of “Non-Resident Pakistanis” ruled by Rahmat Ali’s ghost, Feb 9

308. My American years Part One 1980-90: battles for academic integrity & freedom Feb 11.

309. Thanks and well done Minister Rehman Malik and the Govt of Pakistan Feb 12

310. Can President Obama resist the financial zombies (let alone slay them)? His economists need to consult Dr Anna J Schwartz Feb 14

311. A Brief History of Gilgit, Feb 18

312. Memo to UCLA Geographers: Commonsense suggests Mr Bin Laden is far away from the subcontinent Feb 20

313. The BBC gets its history and geography deliberately wrong again Feb 21

314. Bengal Legislative Council 1921, Feb 28

315. Carmichael visits Surendranath, 1916, Mar 1

316. Memo to GoI CLB: India discovered the Zero, and 51% of Zero is still Zero Mar 10

317. An Academic Database of Doctoral & Other Postgraduate Research Done at UK Universities on India, Pakistan, Sri Lanka, Bangladesh and Other Asian Countries Over 100 Years, Mar 13

318. Pakistan’s progress, Mar 18

319. Risk-aversion explains resistance to free trade, Mar 19

320. India’s incredibly volatile inflation rate! Mar 20

321. Is “Vicky, Cristina, Barcelona” referring to an emasculation of (elite) American society?, Mar 21

322. Just how much intellectual fraud can Delhi produce? Mar 26

323. India is not a monarchy! We urgently need to universalize the French concept of “citoyen”! Mar 28

324. Could this be the real state of some of our higher education institutions? Mar 29

325. Progress! The BBC retracts its prevarication! Mar 30

326. Aldous Huxley’s Essay “DH Lawrence” Mar 31

327. Waffle not institutional reform is what (I predict) the “G-20 summit” will produce, April 1

328. Did a full cricket team of Indian bureaucrats follow our PM into 10 Downing Street? Count for yourself! April 3

329. Will someone please teach the BJP’s gerontocracy some Economics 101 on an emergency basis? April 5

330. The BBC needs to determine exactly where it thinks Pakistan is!, April 5

331. Alfred Lyall on Christians, Muslims, India, China, Etc, 1908, April 6

332. An eminent economist of India passes away April 9

333. Democracy Database for the Largest Electorate Ever Seen in World History, April 12

334. Memo to the Election Commission of India April 14 2009, 9 AM, April 14

335. Caveat emptor! Satyam is taken over, April 14

336. India’s 2009 General Elections: Candidates, Parties, Symbols for Polls on 16-30 April Phases 1,2,3, April 15

337. On the general theory of expertise in democracy: reflections on what emerges from the American “torture memos” today, April 18

338. India’s 2009 General Elections: 467 constituencies (out of 543) for which candidates have been announced as of 1700hrs April 21, April 21

339. Apropos Philosophy of Economics, Comments of Sidney Hook, KJ Arrow, Milton Friedman, TW Schultz, SS Alexander, Max Black, Renford Bambrough, John Gray et al., April 22.

340. India’s 2009 General Elections: Names of all 543 Constituencies of the 15th Lok Sabha, April 22.

341. India’s 2009 General Elections: How 4125 State Assembly Constituencies comprise the 543 new Lok Sabha Constituencies, April 23.

342. Why has America’s “torture debate” yet to mention the obvious? Viz., sadism and racism, April 24

343. India’s 2009 General Elections: the advice of the late “George Eliot” (Mary Ann Evans, 1819-1880) to India’s voting public, April 24.

344. India’s 2009 General Elections: Delimitation and the Different Lists of 543 Lok Sabha Constituencies in 2009 and 2004, April 25

345. Is “Slumdog Millionaire” the single worst Best Picture ever?

346. India’s 2009 General Elections: Result of Delimitation — Old (2004) and New (2009) Lok Sabha and Assembly Constituencies, April 26

347. India’s 2009 General Elections: 7019 Candidates in 485 (out of 543) Constituencies announced as of April 26 noon April 26

348. What is Christine Fair referring to? Would the MEA kindly seek to address what she has claimed asap? April 27

349. Politics can be so entertaining 🙂 Manmohan versus Sonia on the poor old CPI(M)!, April 28

350. A Dozen Grown-Up Questions for Sonia Gandhi, Manmohan Singh, LK Advani, Sharad Pawar, Km Mayawati and Anyone Else Dreaming of Becoming/Deciding India’s PM After the 2009 General Elections, April 28

351. India’s 2009 General Elections: How drastically will the vote-share of political parties change from 2004? May 2

352. India’s 2009 General Elections: And now finally, all 8,070 Candidates across all 543 Lok Sabha Constituencies, May 5

353. India’s 2009 General Elections: The Mapping of Votes into Assembly Segments Won into Parliamentary Seats Won in the 2004 Election, May 7

354. Will Messrs Advani, Rajnath Singh & Modi ride into the sunset if the BJP comes to be trounced? (Corrected), May 10

355. India’s 2009 General Elections: 543 Matrices to Help Ordinary Citizens Audit the Election Commission’s Vote-Tallies May 12

356. Well done Sonia-Rahul! Two hours before polls close today, I am willing to predict a big victory for you (but, please, try to get your economics right, and also, you must get Dr Singh a Lok Sabha seat if he is to be PM) May 13

357. Buddhadeb Bhattacharjee must dissolve the West Bengal Assembly if he is an honest democrat: Please try to follow Gerard Schröder’s example even slightly! May 16

358. India’s 2009 General Elections: Provisional Results from the EC as of 1400 hours Indian Standard Time May 16

359. Memo to the Hon’ble President of India: It is Sonia Gandhi, not Manmohan Singh, who should be invited to our equivalent of the “Kissing Hands” Ceremony May 16

360. Time for heads to roll in the BJP/RSS and CPI(M)!, May 17.

361. Inviting a new Prime Minister of India to form a Government: Procedure Right and Wrong May 18

362. Starting with Procedural Error: Why has the “Cabinet” of the 14th Lok Sabha been meeting today AFTER the results of the Elections to the 15th Lok Sabha have been declared?! May 18

363. Why has the Sonia Congress done something that the Congress under Nehru-Indira-Rajiv would not have done, namely, exaggerate the power of the Rajya Sabha and diminish the power of the Lok Sabha? May 21

364. Shouldn’t Dr Singh’s Cabinet begin with a small apology to the President of India for discourtesy? May we have reviews and reforms of protocols and practices to be followed at Rashtrapati Bhavan and elsewhere? May 23

365. Parliament’s sovereignty has been diminished by the Executive: A record for future generations to know May 25

366. How tightly will organised Big Business be able to control economic policies this time? May 26

367. Why does India not have a Parliament ten days after the 15th Lok Sabha was elected? Nehru and Rajiv would both have been appalled May 27

368. Eleven days and counting after the 15th Lok Sabha was elected and still no Parliament of India! (But we do have 79 Ministers — might that be a world record?) May 28

369. Note to Posterity: 79 Ministers in office but no 15th Lok Sabha until June 1 2009! May 29

370. Silver Jubilee of Pricing, Planning & Politics: A Study of Economic Distortions in India May 29

371. How to Design a Better Cabinet for the Government of India May 29

372. Parliament is supposed to control the Government, not be bullied or intimidated by it: Will Rahul Gandhi be able to lead the Backbenches in the 15th Lok Sabha? June 1

373. Mistaken Macroeconomics: An Open Letter to Prime Minister Dr Manmohan Singh, June 12

374. Why did Manmohan Singh and LK Advani apologise to one another? Is Indian politics essentially collusive, not competitive, aiming only to preserve and promote the post-1947 Dilli Raj at the expense of the whole of India? We seem to have no Churchillian repartee (except perhaps from Bihar occasionally) June 18

375. Are Iran’s Revolutionaries now Reactionaries? George Orwell would have understood. A fresh poll may be the only answer Are Iran’s Revolutionaries now Reactionaries? George Orwell would have understood. A fresh poll may be the only answer June 22

376. My March 25 1991 memo to Rajiv (which never reached him) is something the present Government seems to have followed: all for the best of course! July 12

377. Disquietude about France’s behaviour towards India on July 14 2009 July 14

378. Does the Govt. of India assume “foreign investors and analysts” are a key constituency for Indian economic policy-making? If so, why so? Have Govt. economists “learnt nothing, forgotten everything”? Some Bastille Day thoughts July 14

379. Letter to the GoI’s seniormost technical economist, May 21.July 19

380. Excuse me but young Kasab in fact confessed many months ago, immediately after he was captured – he deserves 20 or 30 years in an Indian prison, and a chance to become a model prisoner who will stand against the very terrorists who sent him on his vile mission July 20

381. Finally, three months late, the GoI responds to American and Pakistani allegations about Balochistan July 24

382. Thoughts, words, deeds: My work 1973-2010

2012

383.  Life of my father 1915-2012

384. India’s Money” in the Cayman Financial Review, July 2012

385. Towards Making the Indian Rupee a Hard Currency of the World Economy: An analysis from British times until the present day, lecture at India International Centre, Delhi, 3 Dec 2012

386. 5 December 2012 interview by Mr Paranjoy Guha Thakurta, on Lok Sabha TV, the channel of India’s Lower House of Parliament, broadcast for the first time on 9 December 2012 on Lok Sabha TV, is here and here  in two parts.

387. Interview by GDI Impuls banking quarterly of  Zürich  published on 6 Dec 2012 is here.

388. My interview by Ragini Bhuyan of Delhi’s Sunday Guardian published on 16 Dec 2012  is here.

2013

389. “I have a student called Suby Roy…”: Reflections on Frank Hahn (1925-2013), my master in economic theory

390. Cambridge Economics & the Disputation in India’s Economic Policy, Revised 15 July 2013

391. Critical assessment dated 19 August 2013 of Raghuram Rajan is here (Live Mint 19 Aug) and here

392.  “Did Jagdish Bhagwati “originate”, “pioneer”, “intellectually father” India’s 1991 economic reform? Did Manmohan Singh? Or did I, through my encounter with Rajiv Gandhi, just as Siddhartha Shankar Ray told Manmohan & his aides in Sep 1993 in Washington? Judge the evidence for yourself. And why has Amartya Sen misdescribed his work? India’s right path forward today remains what I said in my 3 Dec 2012 Delhi lecture! 23 August 2013 here

393. My Recent Works, Interviews etc on India’s Money, Public Finance, Banking, Trade, BoP, Land, etc (an incomplete list) Nov 23, 2013

2014

394.  1) My 13 Sep 2019 Advice to PM Modi’s Adviser: Let PM address each State Legislature, get all India Govt Accounting & Public Decision Making to have integrity (2) 16 May 2014 Advice from Rajiv Gandhi’s Adviser to Narendra Modi: Do not populate the “Planning Commission” with worthies, scrap it, integrate its assets with the Treasury. And get the nationalised banks & RBI out of the Treasury. Tell them to read my 3 Dec 2012 Delhi lecture with care. Clean Government Accounting & Audit is the Key to Clean Public Finances & a Proper Indian Currency for the First Time Ever May 16, 2014. 

395.  “On India’s Education Policy”, published as “Mrs Irani’s New Job”/”Task Cut Out For Smriti Irani”  http://www.newindianexpress.com/opinion/Task-Cut-Out-for-Smriti-Irani/2014/06/16/article2282316.ece

396. Much as I might love Russia, England, France, America, I despise their spies & local agents affecting poor India’s policies: Memo to PM Modi, Mr Jaitley, Mr Doval & the new Govt. of India: Beware of Delhi’s sleeper agents, lobbyists & other dalals

397. “Haksar, Manmohan and Sonia” New Indian Express http://t.co/bRnQI1hrwy

2015

398.  Free India’s Foreign Policy & Economy in One Chart: Weapons Imports 1950-2013 by Country of Origin

399.  Delhi can never be improved — until the rest of India improves! February 13, 2015

400. Pakistan’s & India’s Illusions of Power (Psychosis vs Vanity) March 3, 2015

401.  How the India-Bangladesh Enclaves Problem Was Jump-Started in 2007 Towards its 2015 Solution: A Case Study of Academic Impact on Policy June 8, 2015

402.  On being reunited with Arrow Hahn after a dozen years July 3, 2015

403.  Fixing Washington: On Improving Institutional Design in the United States November 24, 2016

404.  Modi & Monetary Theory: Economic Consequences of the Prime Minister of India December 9, 2016.

405.  Physics & Reasoning (An Ongoing Tract) by Subroto Roy DRAFT 01.12.2017 September 26, 2017

406. Is “Cambridge Philosophy” dead, in Cambridge? Can it be resurrected, there? Case Study: Renford Bambrough (& Subroto Roy) preceded by decades Cheryl Misak’s thesis on Wittgenstein being linked with Peirce via Ramsey… October 27, 2017

407. S N Roy hears from Lytton: A 1922 case of British imperial racism in Indian governance (with lessons for today) [Draft text 12 August 2018] February 8, 2018

408.  Solving a Problem of State Tyranny: Director General Siddhanta Das: Have Forest Service Officers been threatening ordinary citizens, seizing their property, then threatening them with arrest if they complain? If so, how many cases of wrongful seizure and wrongful imprisonment have WCCB caused among India’s villagers and forest dwellers since 1994? There is immediate need for an Ombudsman to independently review all cases in each of your Five Zones! May 4,

409.  Critique of Monetary Ideas of Manmohan & Modi: the Roy Model explaining to Bimal Jalan, Nirmala Sitharaman, RBI etc what it is they are doing (Drafts 4 August, 7 August 2019; 27 August, 28 August, 30 August, 31 August, 1 September 2019) August 4, 2019

410. 1 May 2020 Statement of Dr. Subroto Roy, Economist & Citizen, Proposing PM Narendra Modi & Home Minister Amit Shah Apologize to India’s People, Create Remedy, and Resign to Do Prayaschit/Atonement; 9 May: A New Cabinet for President Kovind May 1, 2020

See also:

My Recent Works, Interviews etc on India’s Money, Public Finance, Banking, Trade, BoP, etc (an incomplete list)

My Seventy-One Articles, Notes Etc on Kashmir, Pakistan, & of course, India (plus my undelivered Lahore lectures)

My Ten Articles on China, Tibet, Xinjiang, Taiwan in relation to India

M1. Map of Asia c. 1900

M2. Map of Chinese Empire c. 1900

M3. Map of Sinkiang, Tibet and Neighbours 1944

M4. China’s Secretly Built 1957 Road Through India’s Aksai Chin

M5. Map of Kashmir to Sinkiang 1944

M6. Map of India-Tibet-China-Mongolia 1959

M7. Map of India, Afghanistan, Russia, China, 1897

M8. Map of Xinjiang/Sinkiang/E Turkestan

M9. Map of Bombay/Mumbai 1909

M10-M13. Himalayan Expedition, West Sikkim 1970 – 1,2,3,4

Thoughts, words, deeds

My work 1973-2014

Subroto Roy

This is an incomplete bibliography of my writings, public lectures etc 1973-2014 including citations, reviews, comments. I have been mostly an academic economist who by choice or circumstance over 41 years has had to venture also into science, philosophy, public policy, law, jurisprudence, practical politics, history, international relations, military strategy, financial theory, accounting, management, journalism, literary criticism, psychology, psychoanalysis, theology, aesthetics, biography, children’s fables, etc. If anything unites the seemingly diverse work recorded below it is that I have tried to acquire a grasp of the nature of human reason and then apply this comprehension in practical contexts as simply and clearly as possible. Hence I have ended up following the path of Aristotle, as described in modern times (via Wittgenstein and John Wisdom) by Renford Bambrough. The 2004 public lecture in England, “Science, Religion, Art & the Necessity of Freedom”, may explain and illustrate all this best. A friend has been kind enough to call me an Academician, which I probably am, though one who really needs his own Academy because the incompetence, greed and mendacity encountered too often in the modern professoriat is dispiriting.
Besides writings and publications printed on paper, there are writings or items not printed on paper — as new media break space, cost and other constraints of traditional publishing. A little repetition and overlap has occurred too. Also in a few cases, e.g., Aldous Huxley’s essay on DH Lawrence, nothing has been done except discover and republish. Several databases have been created and released in the public interest, as have been some rare maps. There is also some biographical and autobiographical material. Several inconsequential errors remain in the text, which shall take time to be rectified as documents come to be rediscovered and collated.
1973

1. “Behavioural study of mus musculus”, Haileybury College, Supervised by J de C Ford-Robertson MA (Oxon). (Due to be published here 2010).
2. “Chemistry at Advanced & Special Level: Student Notes 1972-73” (Due to be published here 2010).
3. “Biology at Advanced & Special Level: Student Notes 1972-73”, (Due to be published here 2010).
4. “Physics at Advanced Level: Student Notes 1972-73”, (Due to be published here 2010).
5. “Revolution: theoria and praxis”, London, mimeo (Due to be published here 2010).
6. “Gandhi vs Marx”, London, mimeo (Due to be published here 2010).
1974
7. “Relevance of downward money-wage rigidity to the problem of maintaining full-employment in the classical and Keynesian models of income determination”, London School of Economics, mimeo (Due to be published here 2010).
8. “Testing aircraft fuels at Shell Finland”.
1975
9. “Oxford Street experiences: down and out in London town”.
10. “SE Region Bulk Distribution Survey”, Unilever, Basingstoke.
11. “Four London poems”, in JCM Paton (ed) New Writing (London, Great Portland Street: International Students House). (Due to be republished here 2010)
12. “On economic growth models and modellers”, London School of Economics, mimeo. (Due to be published here 2010).
1976
13. “World money: system or anarchy?”, lecture to Professor ACL Day’s seminar, London School of Economics, Economics Department, April. (Due to be published here 2010).
14. “A beginner’s guide to some recent developments in monetary theory”, lecture to Professor FH Hahn’s seminar, Cambridge University Economics Department, November 17 (Due to be published here 2010). See also “Announcement of My “Hahn Seminar”, published here June 14 2008.
1977
15. “Inflation and unemployment: a survey”, mimeo, Fitzwilliam College, Cambridge. (Due to be published here 2010).
16. “On short run theories of dual economies”, Cambridge University Economics Department “substantial piece of work” required of first year Research Students. Examiner: DMG Newbery, FBA. (Due to be published here 2010).
1978
17. “Pure theory of developing economies 1 and 2”, Delhi School of Economics mimeo (Due to be published here 2010).
18. “Introduction to some market outcomes under uncertainty”, Delhi School of Economics mimeo (Due to be published here 2010).
19. “On money and development”, Corpus Christi College, Cambridge, mimeo, September. (Due to be published here 2010)
20. “Notes on the Newbery-Stiglitz model of sharecropping”, Corpus Christi College, Cambridge, mimeo November. (Due to be published here 2010).
1979
21. “A theory of rights and economic justice”, Corpus Christi College Cambridge mimeo. (Due to be published here 2010).
22. “Monetary theory and economic development”, Corpus Christi College Cambridge, mimeo (Due to be published here 2010).
23. “Foundations of the case against ‘development planning’”, Corpus Christi College Cambridge, mimeo, November. (Due to be published here 2010).
1979-1989
24. Correspondence with Renford Bambrough (1926-1999), philosopher of St John’s College, Cambridge (Due to be published here 2010).
1980
25. “Models before the monetarist storm”, New Statesman letters
26. “Disciplining rulers and experts”, Corpus Christi College, Cambridge, mimeo. (Due to be published here 2010).
1981
27. “On liberty & economic growth: preface to a philosophy for India”, Cambridge University doctoral thesis, supervisor FH Hahn, FBA; examiners CJ Bliss, FBA; TW Hutchison, FBA (Due to be published here 2010). 27a Response of FA Hayek on a partial draft February 18 1981. 27b Response of Peter Bauer, 1982. 27c Response of Theodore W Schultz, 1983. 27d. Response of Frank Hahn 1985.
1982
28. “Knowledge and freedom in economic theory Parts 1 and 2”, Centre for Study of Public Choice, Virginia Polytechnic Institute & State University, Working Papers.
29. “Economic Theory and Development Economics”. Lecture to American Economic Association, New York, Dec 1982. Panel: RM Solow, HB Chenery, T Weisskopf, P Streeten, G Rosen, S Roy. Published in 29a.
1983
29a “Economic Theory and Development Economics: A Comment”. World Development, 1983. [Citation: Stavros Thefanides “Metamorphosis of Development Economics”, World Development 1988.]
30. “The Political Economy of Trade Policy (Comment on J. Michael Finger)”, Washington DC: Cato Journal, Winter 1983/84. See also “Did Donald Trump & Bernie Sanders get their Trade Policy from my 1983 Cato talk?”  2009/2017.
1984
31. “Considerations on Utility, Benevolence and Taxation”, History of Political Economy, 1984. 31a Response of Professor Sir John Hicks May 1 1984.
[Citations: P. Hennipman, “A Tale of Two Schools”, De Economist 1987, “A New Look at the Ordinalist Revolution”, J. Econ. Lit. Mar 1988; P. Rappoport, “Reply to Professor Hennipman”, J. Econ. Lit. Mar 1988; Eugene Smolensky et al “An Application of A Dynamic Cost-of-Living Index to the Evaluation of Changes in Social Welfare”, J. Post-Keynesian Econ.IX.3. 1987.]
32. Pricing, Planning and Politics: A Study of Economic Distortions in India, London: Institute of Economic Affairs, London 1984.
[Citations: Lead editorial of The Times of London May 29 1984, “India’s economy”, Times letters June 16 1984. John Toye “Political Economy & Analysis of Indian Development”, Modern Asian Studies, 22, 1, 1988; John Toye, Dilemmas of Development; D. Wilson, “Privatization of Asia”, The Banker Sep. 1984 etc]. See also 370 “Silver Jubilee of ‘Pricing, Planning and Politics: A Study of Economic Distortions in India’” 2009.
33. Review of Utilitarianism and Beyond, Amartya Sen & Bernard Williams (eds) Public Choice.
34. Review of Limits of Utilitarianism, HB Miller & WH Williams (eds.), Public Choice.
35. Deendayal lecture (one of four invited lecturers), Washington DC, May October “On Government and the Individual in India”

1987
36. (with one other) “Does the Theory of Logical Types Inform the Theory of Communication?”, Journal of Genetic Psychology., 148 (4), Dec. 1987 [Citation:
37. “Irrelevance of Foreign Aid”, India International Centre Quarterly, Winter 1987.
38. Review of Development Planning by Sukhamoy Chakravarty for Economic Affairs, London 1987.
1988
39. (with Seiji Naya and Pearl Imada) “Introduction” to Lessons in Development: A Comparative Study of Asia and Latin America. San Francisco: Inst. of Economic Growth.
40. “A note on the welfare economics of regional cooperation”, lecture to Asia-Latin America conference, East West Center Honolulu, published 2009.
1989
41. Philosophy of Economics: On the Scope of Reason in Economic Inquiry, London & New York: Routledge (International Library of Philosophy) 1989, paperback 1991. Internet edition 2007. [Reviews & Citations: Research in Economics, 1992; De Economist 1991 & 1992; Manch.Sch. Econ.Studs. 59, 1991; Ethics 101.88 Jul. 1991; Kyklos 43.4 1990; Soc. Science Q. 71.880. Dec.1990; Can. Phil. Rev. 1990; J. Econ. Hist. Sep. 1990; Econ. & Phil. Fall 1990; Econ. Affairs June-July 1990; TLS May 1990; Choice March 1990; J. App.Phil. 1994, M. Blaug: Methodology of Economics, 2nd ed., Cambridge, 1992; Hist. Methods. 27.3, 1994; J. of Inst. & Theoretical Econ.,1994; Jahrbucker fur Nationaleconomie 1994, 573:574. Mark A Lutz in Economics for the Common Good, London: Routledge, 1999, et al]. See also 339 “Apropos Philosophy of Economics”, Comments of Sidney Hook, KJ Arrow, Milton Friedman, TW Schultz, SS Alexander, Max Black, Renford Bambrough, John Gray et al.
42. Foreword to Essays on the Political Economy by James M. Buchanan, Honolulu: University of Hawaii Press 1989.
43. “Modern Political Economy of India”, edited by Subroto Roy & William E James, Hawaii mimeo May 21 1989. This published for the first time a November 1955 memorandum to the Government of India by Milton Friedman. See also 43a, 53.
43a. Preface to “Milton Friedman’s extempore comments at the 1989 Hawaii conference: on India, Israel, Palestine, the USA, Debt and its uses, Erhardt abolishing exchange controls, Etc”, May 22 1989, published here for the first time October 31 2008.
44. Milton Friedman’s defence of my work in 1989.
45. Theodore W. Schultz’s defence of Philosophy of Economics
1990
46. “Letter to Judge Evelyn Lance: On A Case Study in Private International Law” (Due to be published here in 2010).
47-49. Selections from advisory work on economic policy etc for Rajiv Gandhi, Leader of the Opposition in the Parliament of India, published in 47a-49a.
1991
41b Philosophy of Economics: On the Scope of Reason in Economic Inquiry, Paperback edition.
50. “Conversations and correspondence with Rajiv Gandhi during the Gulf war, January 1991” (Due to be published here 2010).
47a. A Memo to Rajiv I: Stronger Secular Middle”, The Statesman, Jul 31 1991.
48a “A Memo to Rajiv II: Saving India’s Prestige”, The Statesman, Aug 1 1991.
49a “A Memo to Rajiv III: Salvation in Penny Capitalism”, The Statesman, Aug 2 1991 47b-49b “Three Memoranda to Rajiv Gandhi 1990-91”, 2007 republication here.
51. “Constitution for a Second Indian Republic”, The Saturday Statesman, April 20 1991. Republished here 2009.
52. “On the Art of Government: Experts, Party, Cabinet and Bureaucracy”, New Delhi mimeo March 25 1991, published here July 00 2009.
1992
53. Foundations of India’s Political Economy: Towards an Agenda for the 1990s Edited and with an Introduction by Subroto Roy & William E. James New Delhi, London, Newbury Park: Sage: 1992. Citation: Milton and Rose Friedman Two Lucky People (Chicago 1998), pp. 268-269.
54. Foundations of Pakistan’s Political Economy: Towards an Agenda for the 1990s Edited and with an Introduction by William E. James & Subroto Roy, Hawaii MS 1989, Sage: 1992, Karachi: Oxford 1993.
Reviews of 53 & 54 include: Bus. Today, Mar-Apr 1992; Political Studies March 1995; Econ Times 21 March 1993; Pakistan Development Review 1992. Hindustan Times 11 July 1992. Pacific Affairs 1993; Hindu 21 March 1993, 15 June 1993; Pakistan News International 12 June 1993. Book Reviews March 1993; Deccan Herald 2 May 1993; Pol.Econ.J. Ind. 1992. Fin Express 13 September 1992; Statesman 16 Jan. 1993. J. Royal Soc Asian Aff. 1994, J. Contemporary Asia, 1994 etc.
55. “Fundamental Problems of the Economies of India and Pakistan”, World Bank, Washington, mimeo (Due to be published here 2010).
56.“The Road to Stagflation: The Coming Dirigisme in America, or, America, beware thy economists!, or Zen and Clintonomics,” Washington DC, Broad Branch Terrace, mimeo, November 17.
1993
57. “Exchange-rates and manufactured exports of South Asia”, IMF Washington DC mimeo. Published in part in 2007-2008 as 58-62:
58. “Path of the Indian Rupee 1947-1993”, 2008.
59. “Path of the Pakistan Rupee 1947-1993”, 2008.
60. “Path of the Sri Lankan Rupee 1948-1993”, 2008.
61. “Path of the Bangladesh Taka 1972-1993”, 2008.
62. “India, Pakistan, Sri Lanka, Bangladesh Manufactured Exports, IMF Washington DC mimeo”, published 2007.
63. “Economic Assessment of US-India Merchandise Trade”, Arlington, Virginia, mimeo, published in slight part in Indo-US Trade & Economic Cooperation, ICRIER New Delhi, 1995, and in whole 2007.
64. “Towards an Economic Solution for Kashmir”, mimeo, Arlington, Virginia, circulated in Washington DC 1993-1995, cf 82, 111 infra. Comment of Selig Harrison.
1994
65. “Comment on Indonesia”, in The Political Economy of Policy Reform edited by John Williamson, Washington, DC: Institute for International Economics.
66a “Gold reserves & the gold price in anticipation of Central Bank behaviour”, Greenwich, Connecticut, mimeo. 67b. “Portfolio optimization and foreign currency exposure hedging” Greenwich, Connecticut mimeo.
1995
68. “On the logic and commonsense of debt and payments crises: How to avoid another Mexico in India and Pakistan”, Scarsdale, NY, mimeo, May 1.
69. “Policies for Young India”, Scarsdale, NY, pp. 350, manuscript.
1996
70. US Supreme Court documents, published in part in 2008 as “Become a US Supreme Court Justice!” 70a, 70b (Due to be published in full here in 2010 as Roy vs University of Hawaii, 1989- including the expert testimonies of Milton Friedman and Theodore W Schultz.).
71. “Key problems of macroeconomic management facing the new Indian Government”, May 17. Scarsdale, New York, mimeo. (Due to be published here 2010).
72. “Preventing a collapse of the rupee”, IIT Kharagpur lecture July 16 1996.
73. “The Economist’s Representation of Technological Knowledge”, Vishvesvaraya lecture to the Institution of Engineers, September 15 1996, IIT Kharagpur.
1997
74. “Union and State Budgets in India”, lecture at the World Bank, Washington DC, May 00.
75. “State Budgets in India”, IIT Kharagpur mimeo, June 6.
1998
76. “Transparency and Economic Policy-Making: An address to the Asia-Pacific Public Relations Conference” (panel on Transparency chaired by CR Irani) Jan 30 1998, published here 2008.
77. Theodore W. Schultz 1902-1998, Feb 25.
78. “The Economic View of Human Resources”, address to a regional conference on human resources, IIT Kharagpur.
79. “Management accounting”, lecture at Lal Bahadur Shastri Academy, Mussourie,
80a “The Original Reformer”, Outlook letters, Jan 23 1998
81. “Recent Developments in Modern Finance”, IIM Bangalore Review, 10, 1 & 2, Jan.-Jun 1998. Reprinted as “From the Management Guru’s Classroom”: 81a “An introduction to derivatives”, Business Standard/Financial Times, Bombay 18 Apr 1999; 81b “Options in the future, Apr 25 1999; 81c “What is hedging?”, May 2 1999; 81d “Teaching computers to think”, May 9 1999.
82. “Towards an Economic Solution for Kashmir”, Jun 22 1998, lecture at Heritage Foundation, Washington DC. Cf 111 Dec 2005.
83. “Sixteen Currencies for India: A Reverse Euro Model for Monetary & Fiscal Efficacy”, Lecture at the Institute of Economic Affairs, London, June 29 1998. Due to be published here 2010.
84. “Fable of the Fox, the Farmer, and the Would-Be Tailors”, October (Published here July 27 2009).
85. “A Common Man’s Guide to Pricing Financial Derivatives”, Lecture to “National Seminar on Derivatives”, Xavier Labour Research Institute, Jamshedpur, Dec. 16 1998. See 98.
1999
86. “An Analysis of Pakistan’s War-Winning Strategy: Are We Ready for This?”, IIT Kharagpur mimeo, published in part as 86a.“Was a Pakistani Grand Strategy Discerned in Time by India?” New Delhi: Security & Political Risk Analysis Bulletin, July 1999, Kargil issue. See also 000
80b. “The Original Reformer”, Outlook letters, Sep 13 1999.
2000
87. “On Freedom & the Scientific Point of View”, SN Bose National Centre for Basic Sciences, Feb 17 2000. Cf 100 below.
88. “Liberalism and Indian economic policy”, lecture at IIM Calcutta, Indian Liberal Group Meetings Devlali, Hyderabad; also Keynote address to UGC Seminar Guntur, March 30 2002. (Due to be published here 2010).
89. “Towards a Highly Transparent Fiscal & Monetary Framework for India’s Union & State Governments”, Invited address to Conference of State Finance Secretaries, Reserve Bank of India, Bombay, April 29, 2000. Published 2008.
90. “On the Economics of Information Technology”, two lectures at the Indian Institute of Information Technology, Bangalore, Nov 10-11, 2000.
91. Review of A New World by Amit Chaudhuri in Literary Criterion, Mysore.
2001
92. Review of AD Shroff: Titan of Finance and Free Enterprise by Sucheta Dalal, Freedom First., January.
93. “Encounter with Rajiv Gandhi: On the Origins of the 1991 Economic Reform”, Freedom First, October. See also 93a in 2005 and 93b in 2007.
94. “A General Theory of Globalization & Modern Terrorism with Special Reference to September 11”, a keynote address to the Council for Asian Liberals & Democrats, Manila, Philippines, 16 Nov. 2001. Published as 91a.
95. “The Case for and against The Satanic Verses: Diatribe and Dialectic as Art”, Dec 22 republished in print 95a The Statesman Festival Volume, 2006.
2002
94a “A General Theory of Globalization & Modern Terrorism with Special Reference to September 11”, in September 11 & Political Freedom in Asia, eds. Johannen, Smith & Gomez, Singapore 2002.
2002-2010
96. “Recording vivid dreams: Freud’s advice in exploring the Unconscious Mind” (Due to be published here in 2010).
2003
97. “Key principles of government accounting and audit”, IIT Kharagpur mimeo.
98. “Derivative pricing & other topics in financial theory: a student’s complete lecture notes” (Due to be published here in 2010).
2004
99. TV Interview by BBC, Oxford, after May 2004 General Election in India.
100. “Collapse of the Global Conversation”, International Institute for Asian Studies, Leiden, Netherlands, Jul 2004.
101. “Science, Religion, Art & the Necessity of Freedom”, a public lecture, University of Buckingham, UK, August 24 2004. Published here 2007.
2005
93a Rajiv Gandhi and the Origins of India’s 1991 Economic Reform (this was the full story; it appeared in print for the first time in The Statesman Festival Volume 2007).
102. “Can India become an economic superpower (or will there be a monetary meltdown)?” Cardiff University Institute of Applied Macroeconomics Monetary Economics Seminar, April 13, Institute of Economic Affairs, London, April 27, Reserve Bank of India, Bombay, Chief Economist’s Seminar on Monetary Economics, May 5.
103. Margaret Thatcher’s Revolution: How it Happened and What it Meant, Edited and with an Introduction by Subroto Roy & John Clarke, London & New York: Continuum, 2005; paperback 2006; French translation by Florian Bay, 2007.
104. “Iqbal & Jinnah vs Rahmat Ali in Pakistan’s Creation”, Dawn, Karachi, Sep 3.
105. “The Mitrokhin Archives II from an Indian Perspective: A Review Article”, The Statesman, Perspective Page, Oct 11 .
106. “After the Verdict”, The Statesman, Editorial Page, Oct 20.
107. “US Espionage Failures”, The Statesman, Perspective Page, Oct 26
108. “Waffle But No Models of Monetary Policy”, The Statesman, Perspective Page, Oct 30.
109. “On Hindus and Muslims”, The Statesman, Perspective Page, Nov 6.
110. “Assessing Vajpayee: Hindutva True and False”, The Statesman, Editorial Page, Nov 13-14″.
111. “Fiction from the India Economic Summit”, The Statesman, Front Page, Nov 29.
112. “Solving Kashmir: On an Application of Reason”, The Statesman Editorial Page
I. “Give the Hurriyat et al Indian Green Cards”, Dec 1
II. “Choice of Nationality under Full Information”, Dec 2
III. “Of Flags and Consulates in Gilgit etc”, Dec 3.
2006
113. “The Dream Team: A Critique”, The Statesman Editorial Page
I : New Delhi’s Consensus (Manmohantekidambaromics), Jan 6
II: Money, Convertibility, Inflationary Deficit Financing, Jan 7
III: Rule of Law, Transparency, Government Accounting, Jan 8.
114. “Unaccountable Delhi: India’s Separation of Powers’ Doctrine”, The Statesman, Jan 13.
115. “Communists and Constitutions”, The Statesman, Editorial Page, Jan 22.
116. “Diplomatic Wisdom”, The Statesman, Editorial Page, Jan 31.
117. “Mendacity & the Government Budget Constraint”, The Statesman, Front Page Feb 3.
118. “Of Graven Images”, The Statesman, Editorial Page, Feb5.
119. “Separation of Powers, Parts 1-2”, The Statesman, Editorial Pages Feb 12-13.
120. “Public Debt, Government Fantasy”, The Statesman, Front Page Editorial Comment, Feb 22.
121. “War or Peace Parts 1-2”, The Statesman, Editorial Page, Feb 23-24.
122. “Can You Handle This Brief, Mr Chidambaram?” The Statesman, Front Page Feb 26.
123. “A Downpayment On the Taj Mahal Anyone?”, The Statesman, Front Page Comment on the Budget 2006-2007, Mar 1.
124. “Atoms for Peace (or War)”, The Sunday Statesman, Editorial Page Mar 5.
125. “Imperialism Redux: Business, Energy, Weapons & Foreign Policy”, The Statesman, Editorial Page, Mar 14.
126. “Logic of Democracy”, The Statesman, Editorial Page, Mar 30.
127. “Towards an Energy Policy”, The Sunday Statesman, Editorial Page, Apr 2.
128. “Iran’s Nationalism”, The Statesman, Editorial Page, Apr 6.
129. “A Modern Military”, The Sunday Statesman, Editorial Page, Apr 16.
130. “On Money & Banking”, The Sunday Statesman, Editorial Page, Apr 23.
131. “Lessons for India from Nepal’s Revolution”, The Statesman, Front Page Apr 26.
132. “Revisionist Flattery (Inder Malhotra’s Indira Gandhi: A Review Article)”, The Sunday Statesman, May 7.
133. “Modern World History”, The Sunday Statesman Editorial Page, May 7.
134. “Argumentative Indians: A Conversation with Professor Amartya Sen on Philosophy, Identity and Islam,” The Sunday Statesman, May 14 2006. “A Philosophical Conversation between Professor Sen and Dr Roy”, 2008. Translated into Bengali by AA and published in 00.
135. “The Politics of Dr Singh”, The Sunday Statesman, Editorial Page, May 21.
136. “Corporate Governance & the Principal-Agent Problem”, lecture at a conference on corporate governance, Kolkata May 31. Published here 2008.
137. “Pakistan’s Allies Parts 1-2”, The Sunday Statesman, Editorial Page, Jun 4-5.
138. “Law, Justice and J&K Parts 1-2”, The Sunday Statesman, Editorial Page, Jul 2, The Statesman Editorial Page Jul 3.
139. “The Greatest Pashtun (Khan Abdul Ghaffar Khan)”, The Sunday Statesman, Editorial Page, Jul 16.
140. “Understanding Pakistan Parts 1-2”, The Sunday Statesman, Editorial Page, Jul 30, The Statesman Editorial Page Jul 31.
141. “Indian Money and Credit”, The Sunday Statesman, Editorial Page, Aug 6.
142. “India’s Moon Mission”, The Sunday Statesman, Editorial Page, Aug 13.
143. “Jaswant’s Journeyings: A Review Article”, The Sunday Statesman Magazine, Aug 27.
144. “Our Energy Interests, Parts 1-2”, The Sunday Statesman, Editorial Page, Aug 27, The Statesman Editorial Page Aug 28.
145. “Is Balochistan Doomed?”, The Sunday Statesman, Editorial Page, Sep 3 2006.
146. “Racism New and Old”, The Statesman, Editorial Page, Sep 8 2006
147. “Political Economy of India’s Energy Policy”, address to KAF-TERI conference, Goa Oct 7, published in 147a.
148. “New Foreign Policy? Seven phases of Indian foreign policy may be identifiable since Nehru”, Parts 1-2, The Sunday Statesman, Oct 8, The Statesman Oct 9.
149. “Justice & Afzal: There is a difference between law and equity (or natural justice). The power of pardon is an equitable power. Commuting a death-sentence is a partial pardon”, The Sunday Statesman Editorial Page Oct 14
150. “Non-existent liberals (On a Liberal Party for India)”, The Sunday Statesman Editorial Page Oct 22.
151. “History of Jammu & Kashmir Parts 1-2”, The Sunday Statesman, Oct 29, The Statesman Oct 30, Editorial Page.
152. “American Democracy: Does America need a Prime Minister and a longer-lived Legislature?”, The Sunday Statesman Nov 5.
153. “Milton Friedman A Man of Reason 1912-2006”, The Statesman Perspective Page, Nov 22.
154. “Postscript to Milton Friedman Mahalanobis’s Plan (The Mahalanobis-Nehru “Second Plan”) The Statesman Front Page Nov 22.
155. “Mob Violence and Psychology”, Dec 10, The Statesman, Editorial Page.
156. “What To Tell Musharraf: Peace Is Impossible Without Non-Aggressive Pakistani Intentions”, The Statesman Editorial Page Dec 15.
157. “Land, Liberty and Value: Government must act in good faith treating all citizens equally – not favouring organised business lobbies and organised labour over an unorganised peasantry”, The Sunday Statesman Editorial Page Dec 31.
2007
158. “Hypocrisy of the CPI-M: Political Collapse In Bengal: A Mid-Term Election/Referendum Is Necessary”, The Statesman, Editorial Page, Jan 9.
159. “On Land-Grabbing: Dr Singh’s India, Buddhadeb’s Bengal, Modi’s Gujarat have notorious US, Soviet and Chinese examples to follow ~ distracting from the country’s real economic problems,” The Sunday Statesman, Editorial Page Jan 14.
160. “India’s Macroeconomics: Real growth has steadily occurred because India has shared the world’s technological progress. But bad fiscal, monetary policies over decades have led to monetary weakness and capital flight” The Statesman Editorial Page Jan 20.
161. “Fiscal Instability: Interest payments quickly suck dry every year’s Budget. And rolling over old public debt means that Government Borrowing in fact much exceeds the Fiscal Deficit”, The Sunday Statesman, Editorial Page, Feb 4.
162. “Our trade and payments Parts 1-2” (“India in World Trade and Payments”),The Sunday Statesman, Feb 11 2007, The Statesman, Feb 12 2007.
163. “Our Policy Process: Self-Styled “Planners” Have Controlled India’s Paper Money For Decades,” The Statesman, Editorial Page, Feb 20.
164. “Bengal’s Finances”, The Sunday Statesman Editorial Page, Feb 25.
165. “Fallacious Finance: Congress, BJP, CPI-M may be leading India to Hyperinflation” The Statesman Editorial Page Mar 5.
166. “Uttar Pradesh Polity and Finance: A Responsible New Govt May Want To Declare A Financial Emergency” The Statesman Editorial Page, Mar 24
167. “A scam in the making” in The Sunday Statesman Front Page Apr 1 2007, published here in full as “Swindling India”.
168. “Maharashtra’s Money: Those Who Are Part Of The Problem Are Unlikely To Be A Part Of Its Solution”, The Statesman Editorial Page Apr 24.
147a. “Political Economy of Energy Policy” in India and Energy Security edited by Anant Sudarshan and Ligia Noronha, Konrad Adenauer Stiftung, New Delhi 2007.
169. “Presidential Qualities: Simplicity, Genuine Achievement Are Desirable; Political Ambition Is Not”, The Statesman, Editorial Page, May 8.
170. “We & Our Neighbours: Pakistanis And Bangladeshis Would Do Well To Learn From Sheikh Abdullah”, The Statesman, Editorial Page May 15.
171. “On Indian Nationhood: From Tamils To Kashmiris And Assamese And Mizos To Sikhs And Goans”, The Statesman, Editorial Page, May 25.
172. A Current Example of the Working of the Unconscious Mind, May 26.
173. Where I would have gone if I was Osama Bin Laden, May 31.
174. “US election ’08:America’s Presidential Campaign Seems Destined To Be Focussed On Iraq”, The Statesman, Editorial Page, June 1.
175. “Home Team Advantage: On US-Iran talks and Sunni-Shia subtleties: Tehran must transcend its revolution and endorse the principle that the House of Islam has many mansions”, The Sunday Statesman Editorial Page, June 3
176. “Unhealthy Delhi: When will normal political philosophy replace personality cults?”, The Statesman, Editorial Page, June 11.
177. “American Turmoil: A Vice-Presidential Coup – And Now a Grassroots Counterrevolution?”, The Statesman, Editorial Page, June 18
178. “Political Paralysis: India has yet to develop normal conservative, liberal and socialist parties. The Nice-Housing-Effect and a little game-theory may explain the current stagnation”, The Sunday Statesman, Editorial Page, June 24.
179. “Has America Lost? War Doctrines Of Kutusov vs Clausewitz May Help Explain Iraq War”, The Statesman, Editorial Page, July 3.
180. “Lal Masjid ≠ Golden Temple: Wide differences are revealed between contemporary Pakistan and India by these two superficially similar military assaults on armed religious civilians”, The Sunday Statesman, Editorial Page July 15
181. “Political Stonewalling: Only Transparency Can Improve Institutions”, The Statesman, Editorial Page July 20.
182. “Gold standard etc: Fixed versus flexible exchange rates”, July 21.
183. “US Pakistan-India Policy: Delhi & Islamabad Still Look West In Defining Their Relationship”, The Statesman, Editorial Page, July 27.
184. “Works of DH Lawrence” July 30
185. “An Open Letter to Professor Amartya Sen about Singur etc”, The Statesman, Editorial Page, July 31.
186. “Martin Buber on Palestine and Israel (with Postscript)”, Aug 4.
187. “Auguste Rodin on Nature, Art, Beauty, Women and Love”, Aug 7.
188. “Saving Pakistan: A Physicist/Political Philosopher May Represent Iqbal’s “Spirit of Modern Times”, The Statesman, Editorial Page, Aug 13.
189. Letter to Forbes.com 16 Aug.
190. “Need for Clarity: A poorly drafted treaty driven by business motives is a recipe for international misunderstanding”, The Sunday Statesman, Editorial Page, Aug 19.
191. “No Marxist MBAs? An amicus curiae brief for the Hon’ble High Court”, The Statesman, FrontPage, Aug 29.
192. On Lawrence, Sep 4.
193. Dalai Lama’s Return: In the tradition of Gandhi, King, Mandela, Sep 11.
194. Of JC Bose, Patrick Geddes & the Leaf-World, Sep 12.
195. “Against Quackery: Manmohan and Sonia have violated Rajiv Gandhi’s intended reforms; the Communists have been appeased or bought; the BJP is incompetent Parts 1-2”, in The Sunday Statesman and The Statesman, Editorial Pages of Sep 23-24.
196. Karl Georg Zinn’s 1994 Review of Philosophy of Economics, Sep 26.
197. DH Lawrence’s Phoenix, Oct 3.
93b. “Rajiv Gandhi and the Origins of India’s 1991 Economic Reform”, Statesman Festival Volume.
198. “Iran, America, Iraq: Bush’s post-Saddam Saddamism — one flip-flop too many?”, The Statesman, Editorial Page, Oct 16.
199. “Understanding China: The World Needs to Ask China to Find Her True Higher Self”, The Statesman, Editorial Page, Oct 22.
200. “India-USA interests: Elements of a serious Indian foreign policy”, The Statesman, Editorial Page, Oct 30.
201. “China’s India Aggression : German Historians Discover Logic Behind Communist Military Strategy”, The Statesman, Editorial Page Special Article, Nov 5.
202. Sonia’s Lying Courtier (with Postscript), Nov 25. See also 2014
203. “Surrender or Fight? War is not a cricket match or Bollywood movie. Can India fight China if it must?” The Statesman, Dec 4, Editorial Page.
204. Hutton and Desai: United in Error Dec 14
205. “China’s Commonwealth: Freedom is the Road to Resolving Taiwan, Tibet, Sinkiang”, The Statesman, Dec 17.
2008
206. “Nixon & Mao vs India: How American foreign policy did a U-turn about Communist China’s India aggression. The Government of India should publish its official history of the 1962 war.” The Sunday Statesman, Jan 6, The Statesman Jan 7 Editorial Page.
207. “Lessons from the 1962 War: Beginnings of a solution to the long-standing border problem: there are distinct Tibetan, Chinese and Indian points of view that need to be mutually comprehended”, The Sunday Statesman, January 13 2008.
208. “Our Dismal Politics: Will Independent India Survive Until 2047?”, The Statesman Editorial Page, Feb 1.
209. Median Voter Model of India’s Electorate Feb 7.
210. “Anarchy in Bengal: Intra-Left bandh marks the final unravelling of “Brand Buddha””, The Sunday Statesman, Editorial Page, Feb 10.
211. Fifty years since my third birthday: on life and death.
212. “Pakistan’s Kashmir obsession: Sheikh Abdullah Relied In Politics On The French Constitution, Not Islam”, The Statesman, Editorial Page, Feb 16.
213. A Note on the Indian Policy Process Feb 21.
214. “Growth & Government Delusion: Progress Comes From Learning, Enterprise, Exchange, Not The Parasitic State”, The Statesman, Editorial Page, Feb 22.
215. “How to Budget: Thrift, Not Theft, Needs to Guide Our Public Finances”, The Statesman, Editorial Page, Feb 26.
216. “India’s Budget Process (in Theory)”, The Statesman, Front Page Feb 29.
217. “Irresponsible Governance: Congress, BJP, Communists, BSP, Sena Etc Reveal Equally Bad Traits”, The Statesman, Editorial Page, March 4.
218. “American Politics: Contest Between Obama And Clinton Affects The World”, The Statesman, Editorial Page, March 11.
219. “China’s India Example: Tibet, Xinjiang May Not Be Assimilated Like Inner Mongolia And Manchuria”, The Statesman, Editorial Page, March 25.
220. “Taxation of India’s Professional Cricket: A Proposal”, The Statesman, Editorial Page, April 1.
221. “Two cheers for Pakistan!”, The Statesman, Editorial Page, April 7.
222. “Indian Inflation: Upside Down Economics From The New Delhi Establishment Parts 1-2”, The Statesman, Editorial Page, April 15-16.
223. “Assessing Manmohan: The Doctor of Deficit Finance should realise the currency is at stake”, The Statesman, Editorial Page Apr 25.
224. John Wisdom, Renford Bambrough: Main Philosophical Works, May 8.
225. “All India wept”: On the death of Rajiv Gandhi, May 21.
226. “China’s force and diplomacy: The need for realism in India” The Statesman, Editorial Page May 31.
227. Serendipity and the China-Tibet-India border problem June 6
228. “Leadership vacuum: Time & Tide Wait For No One In Politics: India Trails Pakistan & Nepal!”, The Statesman Editorial Page June 7.
229. My meeting Jawaharlal Nehru Oct13 1962
230. Manindranath Roy 1891-1958
231. Surendranath Roy 1860-1929
232. The Roys of Behala 1928.
233. Sarat Chandra visits Surendranath Roy 1927
234. Nuksaan-Faida Analysis = Cost-Benefit Analysis in Hindi/Urdu Jun 30
235. One of many reasons John R Hicks was a great economist July 3
236. My father, Indian diplomat, in the Shah’s Tehran 1954-57 July 8
237 Distribution of Govt of India Expenditure (Net of Operational Income) 1995 July 27
238. Growth of Real Income, Money & Prices in India 1869-2008, July 28.
239. Communism from Social Democracy? But not in India or China! July 29
240. Death of Solzhenitsyn, Aug. 3
240a. Tolstoy on Science and Art, Aug 4.
241. “Reddy’s reckoning: Where should India’s real interest rate be relative to the world?” Business Standard Aug 10
242. “Rangarajan Effect”, Business Standard Aug 24
243. My grandfather’s death in Ottawa 50 years ago today Sep 3
244. My books in the Library of Congress and British Library Sep 12
245. On Jimmy Carter & the “India-US Nuclear Deal”, Sep 12
246. My father after presenting his credentials to President Kekkonen of Finland Sep 14 1973.
247. “October 1929? Not!”, Business Standard, Sep 18.
248. “MK Gandhi, SN Roy, MA Jinnah in March 1919: Primary education legislation in a time of protest”
249. 122 sensible American economists Sept 26
250. Govt of India: Please call in the BBC and ask them a question Sep 27
251. “Monetary Integrity and the Rupee: Three British Raj relics have dominated our macroeconomic policy-making” Business Standard Sep 28.
252a. Rabindranath’s daughter writes to her friend my grandmother Oct 5
252b. A Literary Find: Modern Poetry in Bengal, Oct 6.
253. Sarat writes to Manindranath 1931, Oct 12
254. Origins of India’s Constitutional Politics 1913
255. Indira Gandhi in Paris, 1971
256. How the Liabilities/Assets Ratio of Indian Banks Changed from 84% in 1970 to 108% in 1998, October 20
257a. My Subjective Probabilities on India’s Moon Mission Oct 21
258. Complete History of Mankind’s Moon Missions: An Indian Citizen’s Letter to ISRO’s Chairman, Oct 22.
259. Would not a few million new immigrants solve America’s mortgage crisis? Oct 26
260. “America’s divided economists”, Business Standard Oct 26
261. One tiny prediction about the Obama Administration, Nov 5
262. Rai Bahadur Umbika Churn Rai, 1827-1902, Nov 7 2008
263. Jawaharlal Nehru invites my father to the Mountbatten Farewell Nov 7 2008
70a. “Become a US Supreme Court Justice! (Explorations in the Rule of Law in America) Preface” Nov 9
70b. “Become a US Supreme Court Justice! (Explorations in the Rule of Law in America)” Nov 9.
257b. Neglecting technological progress was the basis of my pessimism about Chandrayaan, Nov 9.
264. Of a new New Delhi myth and the success of the University of Hawaii 1986-1992 Pakistan project Nov 15
265. Pre-Partition Indian Secularism Case-Study: Fuzlul Huq and Manindranath Roy Nov 16
266. Do President-elect Obama’s Pakistan specialists suppose Maulana Azad, Dr Zakir Hussain, Sheikh Abdullah were Pakistanis (or that Sheikh Mujib wanted to remain one)? Nov 18
267. Jews have never been killed in India for being Jews until this sad day, Nov 28.
268. In international law, Pakistan has been the perpetrator, India the victim of aggression in Mumbai, Nov 30.
269. The Indian Revolution, Dec 1.
270. Habeas Corpus: a captured terrorist mass-murderer tells a magistrate he has not been mistreated by Mumbai’s police Dec 3
271. India’s Muslim Voices (Or, Let us be clear the Pakistan-India or Kashmir conflicts have not been Muslim-Hindu conflicts so much as intra-Muslim conflicts about Muslim identity and self-knowledge on the Indian subcontinent), Dec 4
272. “Anger Management” needed? An Oxford DPhil recommends Pakistan launch a nuclear first strike against India within minutes of war, Dec 5.
273. A Quick Comparison Between the September 11 2001 NYC-Washington attacks and the November 26-28 2008 Mumbai Massacres (An Application of the Case-by-Case Philosophical Technique of Wittgenstein, Wisdom and Bambrough), Dec 6
274. Dr Rice finally gets it right (and maybe Mrs Clinton will too) Dec 7
275. Will the Government of India’s new macroeconomic policy dampen or worsen the business-cycle (if such a cycle exists at all)? No one knows! “Where ignorance is bliss, ‘Tis folly to be wise.” Dec 7
276. Pump-priming for car-dealers: Keynes groans in his grave (If evidence was needed of the intellectual dishonesty of New Delhi’s new macroeconomic policy, here it is) Dec 9.
277. Congratulations to Mumbai’s Police: capturing a terrorist, affording him his Habeas Corpus rights, getting him to confess within the Rule of Law, sets a new world standard Dec 10
278. Two cheers — wait, let’s make that one cheer — for America’s Justice Department, Dec 10
279. Will Pakistan accept the bodies of nine dead terrorists who came from Pakistan to Mumbai? If so, let there be a hand-over at the Wagah border, Dec 11.
280. Kasab was a stupid, ignorant, misguided youth, manufactured by Pakistan’s terrorist masterminds into becoming a mass-murdering robot: Mahatma Gandhi’s India should punish him, get him to repent if he wishes, then perhaps rehabilitate him as a potent weapon against Pakistani terrorism Dec 12.
281. Pakistan’s New Delhi Embassy should ask for “Consular Access” to nine dead terrorists in a Mumbai morgue before asking to meet Kasab, Dec 13
282. An Indian Reply to President Zardari: Rewarding Pakistan for bad behaviour leads to schizophrenic relationships Dec 19
283. Is my prediction about Caroline Kennedy becoming US Ambassador to Britain going to be correct? Dec 27
284. Chandrayaan adds a little good cheer! Well done, ISRO!, Dec 28
285. How sad that “Slumdog millionaire” is SO disappointing! Dec 31
289. (with Claude Arpi) “Transparency & history: India’s archives must be opened to world standards” Business Standard New Delhi Dec 31, 2008, published here Jan 1 .
2009
290. A basis of India-Pakistan cooperation on the Mumbai massacres: the ten Pakistani terrorists started off as pirates and the Al-Huseini is a pirate ship Jan 1.
291. India’s “pork-barrel politics” needs a nice (vegetarian) Hindi name! “Teli/oily politics” perhaps? (And are we next going to see a Bill of Rights for Lobbyists?) Jan 3
292. My (armchair) experience of the 1999 Kargil war (Or, “Actionable Intelligence” in the Internet age: How the Kargil effort got a little help from a desktop) Jan 5
293. How Jammu & Kashmir’s Chief Minister Omar Abdullah can become a worthy winner of the Nobel Peace Prize: An Open Letter, Jan 7
294. Could the Satyam/PwC fraud be the visible part of an iceberg? Where are India’s “Generally Accepted Accounting Principles”? Isn’t governance rather poor all over corporate India? Bad public finance may be a root cause Jan 8
295. Satyam does not exist: it is bankrupt, broke, kaput. Which part of this does the new “management team” not get? The assets belong to Satyam’s creditors. Jan 8
296. Jews are massacred in Mumbai and now Jews commit a massacre in Gaza! Jan 9
297. And now for the Great Satyam Whitewash/Cover-Up/Public Subsidy! The wrong Minister appoints the wrong new Board who, probably, will choose the wrong policy Jan 12
298. Letter to Wei Jingsheng Jan 14
299. Memo to the Hon’ble Attorneys General of Pakistan & India: How to jointly prosecute the Mumbai massacre perpetrators most expeditiously Jan 16
300. Satyam and IT-firms in general may be good candidates to become “Labour-Managed” firms Jan 18
301. “Yes we might be able to do that. Perhaps we ought to. But again, perhaps we ought not to, let me think about it…. Most important is Cromwell’s advice: Think it possible we may be mistaken!” Jan 20.
302. RAND’s study of the Mumbai attacks Jan 25
303. Didn’t Dr Obama (the new American President’s late father) once publish an article in Harvard’s Quarterly Journal of Economics? (Or did he?) Jan 25.
304. “A Dialogue in Macroeconomics” 1989 etc: sundry thoughts on US economic policy discourse Jan 30
305. American Voices: A Brief Popular History of the United States in 20 You-Tube Music Videos Feb 5
306. Jaladhar Sen writes to Manindranath at Surendranath’s death, Feb 23
307. Pakistani expansionism: India and the world need to beware of “Non-Resident Pakistanis” ruled by Rahmat Ali’s ghost, Feb 9
308. My American years Part One 1980-90: battles for academic integrity & freedom Feb 11.
309. Thanks and well done Minister Rehman Malik and the Govt of Pakistan Feb 12
310. Can President Obama resist the financial zombies (let alone slay them)? His economists need to consult Dr Anna J Schwartz Feb 14
311. A Brief History of Gilgit, Feb 18
312. Memo to UCLA Geographers: Commonsense suggests Mr Bin Laden is far away from the subcontinent Feb 20
313. The BBC gets its history and geography deliberately wrong again Feb 21
314. Bengal Legislative Council 1921, Feb 28
315. Carmichael visits Surendranath, 1916, Mar 1
316. Memo to GoI CLB: India discovered the Zero, and 51% of Zero is still Zero Mar 10
317. An Academic Database of Doctoral & Other Postgraduate Research Done at UK Universities on India, Pakistan, Sri Lanka, Bangladesh and Other Asian Countries Over 100 Years, Mar 13
318. Pakistan’s progress, Mar 18
319. Risk-aversion explains resistance to free trade, Mar 19
320. India’s incredibly volatile inflation rate! Mar 20
321. Is “Vicky, Cristina, Barcelona” referring to an emasculation of (elite) American society?, Mar 21
322. Just how much intellectual fraud can Delhi produce? Mar 26
323. India is not a monarchy! We urgently need to universalize the French concept of “citoyen”! Mar 28
324. Could this be the real state of some of our higher education institutions? Mar 29
325. Progress! The BBC retracts its prevarication! Mar 30
326. Aldous Huxley’s Essay “DH Lawrence” Mar 31
327. Waffle not institutional reform is what (I predict) the “G-20 summit” will produce, April 1
328. Did a full cricket team of Indian bureaucrats follow our PM into 10 Downing Street? Count for yourself! April 3
329. Will someone please teach the BJP’s gerontocracy some Economics 101 on an emergency basis? April 5
330. The BBC needs to determine exactly where it thinks Pakistan is!, April 5
331. Alfred Lyall on Christians, Muslims, India, China, Etc, 1908, April 6
332. An eminent economist of India passes away April 9
333. Democracy Database for the Largest Electorate Ever Seen in World History, April 12
334. Memo to the Election Commission of India April 14 2009, 9 AM, April 14
335. Caveat emptor! Satyam is taken over, April 14
336. India’s 2009 General Elections: Candidates, Parties, Symbols for Polls on 16-30 April Phases 1,2,3, April 15
337. On the general theory of expertise in democracy: reflections on what emerges from the American “torture memos” today, April 18
338. India’s 2009 General Elections: 467 constituencies (out of 543) for which candidates have been announced as of 1700hrs April 21, April 21
339. Apropos Philosophy of Economics, Comments of Sidney Hook, KJ Arrow, Milton Friedman, TW Schultz, SS Alexander, Max Black, Renford Bambrough, John Gray et al., April 22.
340. India’s 2009 General Elections: Names of all 543 Constituencies of the 15th Lok Sabha, April 22.
341. India’s 2009 General Elections: How 4125 State Assembly Constituencies comprise the 543 new Lok Sabha Constituencies, April 23.
342. Why has America’s “torture debate” yet to mention the obvious? Viz., sadism and racism, April 24
343. India’s 2009 General Elections: the advice of the late “George Eliot” (Mary Ann Evans, 1819-1880) to India’s voting public, April 24.
344. India’s 2009 General Elections: Delimitation and the Different Lists of 543 Lok Sabha Constituencies in 2009 and 2004, April 25
345. Is “Slumdog Millionaire” the single worst Best Picture ever?
346. India’s 2009 General Elections: Result of Delimitation — Old (2004) and New (2009) Lok Sabha and Assembly Constituencies, April 26
347. India’s 2009 General Elections: 7019 Candidates in 485 (out of 543) Constituencies announced as of April 26 noon April 26
348. What is Christine Fair referring to? Would the MEA kindly seek to address what she has claimed asap? April 27
349. Politics can be so entertaining 🙂 Manmohan versus Sonia on the poor old CPI(M)!, April 28
350. A Dozen Grown-Up Questions for Sonia Gandhi, Manmohan Singh, LK Advani, Sharad Pawar, Km Mayawati and Anyone Else Dreaming of Becoming/Deciding India’s PM After the 2009 General Elections, April 28
351. India’s 2009 General Elections: How drastically will the vote-share of political parties change from 2004? May 2
352. India’s 2009 General Elections: And now finally, all 8,070 Candidates across all 543 Lok Sabha Constituencies, May 5
353. India’s 2009 General Elections: The Mapping of Votes into Assembly Segments Won into Parliamentary Seats Won in the 2004 Election, May 7
354. Will Messrs Advani, Rajnath Singh & Modi ride into the sunset if the BJP comes to be trounced? (Corrected), May 10
355. India’s 2009 General Elections: 543 Matrices to Help Ordinary Citizens Audit the Election Commission’s Vote-Tallies May 12
356. Well done Sonia-Rahul! Two hours before polls close today, I am willing to predict a big victory for you (but, please, try to get your economics right, and also, you must get Dr Singh a Lok Sabha seat if he is to be PM) May 13
357. Buddhadeb Bhattacharjee must dissolve the West Bengal Assembly if he is an honest democrat: Please try to follow Gerard Schröder’s example even slightly! May 16
358. India’s 2009 General Elections: Provisional Results from the EC as of 1400 hours Indian Standard Time May 16
359. Memo to the Hon’ble President of India: It is Sonia Gandhi, not Manmohan Singh, who should be invited to our equivalent of the “Kissing Hands” Ceremony May 16
360. Time for heads to roll in the BJP/RSS and CPI(M)!, May 17.
361. Inviting a new Prime Minister of India to form a Government: Procedure Right and Wrong May 18
362. Starting with Procedural Error: Why has the “Cabinet” of the 14th Lok Sabha been meeting today AFTER the results of the Elections to the 15th Lok Sabha have been declared?! May 18
363. Why has the Sonia Congress done something that the Congress under Nehru-Indira-Rajiv would not have done, namely, exaggerate the power of the Rajya Sabha and diminish the power of the Lok Sabha? May 21
364. Shouldn’t Dr Singh’s Cabinet begin with a small apology to the President of India for discourtesy? May we have reviews and reforms of protocols and practices to be followed at Rashtrapati Bhavan and elsewhere? May 23
365. Parliament’s sovereignty has been diminished by the Executive: A record for future generations to know May 25
366. How tightly will organised Big Business be able to control economic policies this time? May 26
367. Why does India not have a Parliament ten days after the 15th Lok Sabha was elected? Nehru and Rajiv would both have been appalled May 27
368. Eleven days and counting after the 15th Lok Sabha was elected and still no Parliament of India! (But we do have 79 Ministers — might that be a world record?) May 28
369. Note to Posterity: 79 Ministers in office but no 15th Lok Sabha until June 1 2009! May 29
370. Silver Jubilee of Pricing, Planning & Politics: A Study of Economic Distortions in India May 29
371. How to Design a Better Cabinet for the Government of India May 29
372. Parliament is supposed to control the Government, not be bullied or intimidated by it: Will Rahul Gandhi be able to lead the Backbenches in the 15th Lok Sabha? June 1
373. Mistaken Macroeconomics: An Open Letter to Prime Minister Dr Manmohan Singh, June 12
374. Why did Manmohan Singh and LK Advani apologise to one another? Is Indian politics essentially collusive, not competitive, aiming only to preserve and promote the post-1947 Dilli Raj at the expense of the whole of India? We seem to have no Churchillian repartee (except perhaps from Bihar occasionally) June 18
375. Are Iran’s Revolutionaries now Reactionaries? George Orwell would have understood. A fresh poll may be the only answer Are Iran’s Revolutionaries now Reactionaries? George Orwell would have understood. A fresh poll may be the only answer June 22
376. My March 25 1991 memo to Rajiv (which never reached him) is something the present Government seems to have followed: all for the best of course! July 12
377. Disquietude about France’s behaviour towards India on July 14 2009 July 14
378. Does the Govt. of India assume “foreign investors and analysts” are a key constituency for Indian economic policy-making? If so, why so? Have Govt. economists “learnt nothing, forgotten everything”? Some Bastille Day thoughts July 14
379. Letter to the GoI’s seniormost technical economist, May 21.July 19
380. Excuse me but young Kasab in fact confessed many months ago, immediately after he was captured – he deserves 20 or 30 years in an Indian prison, and a chance to become a model prisoner who will stand against the very terrorists who sent him on his vile mission July 20
381. Finally, three months late, the GoI responds to American and Pakistani allegations about Balochistan July 24
382. Thoughts, words, deeds: My work 1973-2010
2012
383. Life of my father 1915-2012
384. India’s Money” in the Cayman Financial Review, July 2012
385. Towards Making the Indian Rupee a Hard Currency of the World Economy: An analysis from British times until the present day, lecture at India International Centre, Delhi, 3 Dec 2012
386. 5 December 2012 interview by Mr Paranjoy Guha Thakurta, on Lok Sabha TV, the channel of India’s Lower House of Parliament, broadcast for the first time on 9 December 2012 on Lok Sabha TV, is here and here in two parts.
387. Interview by GDI Impuls banking quarterly of Zürich published on 6 Dec 2012 is here.
388. My interview by Ragini Bhuyan of Delhi’s Sunday Guardian published on 16 Dec 2012 is here.
2013
389. “I have a student called Suby Roy…”: Reflections on Frank Hahn (1925-2013), my master in economic theory
390. Cambridge Economics & the Disputation in India’s Economic Policy, Revised 15 July 2013
391. Critical assessment dated 19 August 2013 of Raghuram Rajan is here (Live Mint 19 Aug) and here
392. 23 August 2013 of Professors Jagdish Bhagwati & Amartya Sen and Dr Manmohan Singh is here…
2014
393. “Mrs Irani’s New Job”/”Task Cut Out For Smriti Irani” June 16, 2014http://www.newindianexpress.com/opinion/Task-Cut-Out-for-Smriti-Irani/2014/06/16/article2282316.ece
394. Much as I might love Russia, England, France, America, I despise their spies & local agents affecting poor India’s policies: Memo to PM Modi, Mr Jaitley, Mr Doval & the new Govt. of India: Beware of Delhi’s sleeper agents, lobbyists & other dalals
395. “Haksar, Manmohan and Sonia” August 7, 2014 New Indian Express http://t.co/bRnQI1hrwy
396. Free India’s Foreign Policy & Economy in One Chart: Weapons Imports 1950-2013 by Country of Origin
See also:
My Recent Works, Interviews etc on India’s Money, Public Finance, Banking, Trade, BoP, etc (an incomplete list)
My Seventy-One Articles, Notes Etc on Kashmir, Pakistan, & of course, India (plus my undelivered Lahore lectures)
My Ten Articles on China, Tibet, Xinjiang, Taiwan in relation to India
M1. Map of Asia c. 1900
M2. Map of Chinese Empire c. 1900
M3. Map of Sinkiang, Tibet and Neighbours 1944
M4. China’s Secretly Built 1957 Road Through India’s Aksai Chin
M5. Map of Kashmir to Sinkiang 1944
M6. Map of India-Tibet-China-Mongolia 1959
M7. Map of India, Afghanistan, Russia, China, 1897
M8. Map of Xinjiang/Sinkiang/E Turkestan
M9. Map of Bombay/Mumbai 1909
M10-M13. Himalayan Expedition, West Sikkim 1970 – 1,2,3,4

2010 version:

This an incomplete bibliography of my writings, public lectures etc 1973-2010 including citations, reviews, comments.  I have been mostly an academic economist who by choice or circumstance over 36 years has had to venture also into science, philosophy, public policy, law, jurisprudence, practical politics, history, international relations, military strategy, financial theory, accounting, management, journalism, literary criticism, psychology, psychoanalysis, theology, aesthetics, biography, children’s fables, etc.   If anything unites the seemingly diverse work recorded below it is that I have tried to acquire a grasp of the nature of human reason and then apply this comprehension in practical contexts as simply and clearly as possible. Hence I have ended up following the path of Aristotle, as described in modern times (via Wittgenstein and John Wisdom) by Renford Bambrough.  The 2004 public lecture in England, “Science, Religion, Art & the Necessity of Freedom”, may explain and illustrate all this best.  A friend has been kind enough to call me an Academician, which I probably am, though one who really needs his own Academy because the incompetence, greed and mendacity encountered too often in the modern professoriat is dispiriting.

1-289 refer mostly to writings and publications printed on paper; 290-382 refer to  writings or items not printed on paper — as new media break space, cost and other  constraints of traditional publishing, a little repetition and overlap has occurred too. Also in a few cases, e.g., Aldous Huxley’s essay on DH Lawrence, nothing has been done except discover and republish.  Several databases have been created and released in the public interest, as have been some rare maps.  There is also some biographical and autobiographical material.  Several inconsequential errors remain in the text, which shall take time to be rectified as documents come to be rediscovered and collated.

1973

1. “Behavioural study of mus musculus”, Haileybury College, Supervised by J de C Ford-Robertson MA (Oxon). (Due to be published here 2010).

2. “Chemistry at Advanced & Special Level: Student Notes 1972-73” (Due to be published here 2010).

3. “Biology at Advanced & Special Level: Student Notes 1972-73”, (Due to be published here 2010).

4.  “Physics at Advanced Level: Student Notes 1972-73”, (Due to be published here 2010).

5. “Revolution: theoria and praxis”, London, mimeo (Due to be published here 2010).

6. “Gandhi vs Marx”, London, mimeo (Due to be published here 2010).

1974

7. “Relevance of downward money-wage rigidity to the problem of maintaining full-employment in the classical and Keynesian models of income determination”, London School of Economics, mimeo (Due to be published here 2010).

8. “Testing aircraft fuels at Shell Finland”.

1975

9. “Oxford Street experiences: down and out in London town”.

10. “SE Region Bulk Distribution Survey”, Unilever, Basingstoke.

11. “Four London poems”, in JCM Paton (ed)  New Writing (London, Great Portland Street: International Students House).  (Due to be republished here 2010)

12. “On economic growth models and modellers”, London School of Economics, mimeo. (Due to be published here 2010).

1976

13. “World money: system or anarchy?”, lecture to Professor ACL Day’s seminar, London School of Economics, Economics Department, April. (Due to be published here 2010).

14. “A beginner’s guide to some recent developments in monetary theory”, lecture to Professor FH Hahn’s seminar, Cambridge University Economics Department, November 17 (Due to be published here 2010). See also “Announcement of My “Hahn Seminar”,  published here June 14 2008.

1977

15. “Inflation and unemployment: a survey”, mimeo, Fitzwilliam College, Cambridge. (Due to be published here 2010).

16. “On short run theories of dual economies”, Cambridge University Economics Department “substantial piece of work” required of first year Research Students.  Examiner: DMG Newbery, FBA. (Due to be published here 2010).

1978

17. “Pure theory of developing economies 1 and 2”, Delhi School of Economics mimeo (Due to be published here 2010).

18. “Introduction to some market outcomes under uncertainty”, Delhi School of Economics mimeo (Due to be published here 2010).

19. “On money and development”, Corpus Christi College, Cambridge, mimeo, September.  (Due to be published here 2010)

20. “Notes on the Newbery-Stiglitz model of sharecropping”, Corpus Christi College, Cambridge, mimeo November.  (Due to be published here 2010).

1979

21. “A theory of rights and economic justice”, Corpus Christi College Cambridge mimeo. (Due to be published here 2010).

22. “Monetary theory and economic development”, Corpus Christi College Cambridge, mimeo  (Due to be published here 2010).

23. “Foundations of the case against ‘development planning’”, Corpus Christi College Cambridge, mimeo, November.   (Due to be published here 2010).

1979-1989

24. Correspondence with Renford Bambrough (1926-1999), philosopher of St John’s College, Cambridge (Due to be published here 2010).

1980

25. “Models before the monetarist storm”, New Statesman letters

26. “Disciplining rulers and experts”, Corpus Christi College, Cambridge, mimeo.  (Due to be published here 2010).

1981

27. “On liberty & economic growth: preface to a philosophy for India”, Cambridge University doctoral thesis, supervisor FH Hahn, FBA; examiners CJ Bliss, FBA; TW Hutchison, FBA  (Due to be published here 2010). 27a Response of FA Hayek on a partial draft February 18 1981.  27b Response of Peter Bauer, 1982.  27c Response of Theodore W Schultz, 1983.  27d. Response of Frank Hahn 1985.

1982

28. “Knowledge and freedom in economic theory Parts 1 and 2”, Centre for Study of Public Choice, Virginia Polytechnic Institute & State University, Working Papers.

29. “Economic Theory and Development Economics”. Lecture to American Economic Association, New York, Dec 1982.  Panel: RM Solow, HB Chenery, T Weisskopf, P Streeten, G Rosen, S Roy. Published in 29a.

1983

29a “Economic Theory and Development Economics: A Comment”. World Development, 1983. [Citation: Stavros Thefanides “Metamorphosis of Development Economics”, World Development 1988.]

30. “The Political Economy of Trade Policy (Comment on J. Michael Finger)”, Washington DC: Cato Journal, Winter 1983/84. See also 000 “Risk-aversion explains resistance to freer trade”, 2008.

1984

31. “Considerations on Utility, Benevolence and Taxation”, History of Political Economy, 1984.   31a Response of Professor Sir John Hicks May 1 1984.

[Citations: P. Hennipman, “A Tale of Two Schools”, De Economist 1987, “A New Look at the Ordinalist Revolution”, J. Econ. Lit. Mar 1988; P. Rappoport, “Reply to Professor Hennipman”, J. Econ. Lit. Mar 1988; Eugene Smolensky et al “An Application of A Dynamic Cost-of-Living Index to the Evaluation of Changes in Social Welfare”, J. Post-Keynesian Econ.IX.3. 1987.]

32. Pricing, Planning and Politics: A Study of Economic Distortions in India, London: Institute of Economic Affairs, London 1984.

[Citations: Lead editorial of The Times of London May 29 1984, “India’s economy”, Times letters June 16 1984. John Toye “Political Economy & Analysis of Indian Development”, Modern Asian Studies, 22, 1, 1988; John Toye, Dilemmas of Development; D. Wilson, “Privatization of Asia”, The Banker Sep. 1984 etc].  See also 370 “Silver Jubilee of ‘Pricing, Planning and Politics: A Study of Economic Distortions in India’” 2009.

33. Review of Utilitarianism and Beyond, Amartya Sen & Bernard Williams (eds) Public Choice.

34. Review of Limits of Utilitarianism, HB Miller & WH Williams (eds.), Public Choice.

35. Deendayal lecture (one of four invited lecturers), Washington DC, May.

1987

36. (with one other) “Does the Theory of Logical Types Inform the Theory of Communication?”, Journal of Genetic Psychology., 148 (4), Dec. 1987 [Citation:

37. “Irrelevance of Foreign Aid”, India International Centre Quarterly, Winter 1987.

38. Review of Development Planning by Sukhamoy Chakravarty for Economic Affairs, London 1987.

1988

39. (with two others) “Introduction” to Lessons in Development: A Comparative Study of Asia and Latin America. San Francisco: Inst. of Economic Growth.

40. “A note on the welfare economics of regional cooperation”, lecture to Asia-Latin America conference, East West Center Honolulu, published 2009.

1989

41. Philosophy of Economics: On the Scope of Reason in Economic Inquiry, London & New York: Routledge (International Library of Philosophy) 1989, paperback 1991. Internet edition 2007.   [Reviews & Citations: Research in Economics, 1992; De Economist 1991 & 1992; Manch.Sch. Econ.Studs. 59, 1991; Ethics 101.88 Jul. 1991; Kyklos 43.4 1990; Soc. Science Q. 71.880. Dec.1990; Can. Phil. Rev. 1990; J. Econ. Hist. Sep. 1990; Econ. & Phil. Fall 1990; Econ. Affairs June-July 1990; TLS May 1990; Choice March 1990; J. App.Phil. 1994, M. Blaug: Methodology of Economics, 2nd ed., Cambridge, 1992;  Hist. Methods. 27.3, 1994; J. of Inst. & Theoretical Econ.,1994;  Jahrbucker fur Nationaleconomie 1994, 573:574. Mark A Lutz in Economics for the Common Good, London: Routledge, 1999, et al].  See also 339 “Apropos Philosophy of Economics”, Comments of Sidney Hook, KJ Arrow, Milton Friedman, TW Schultz, SS Alexander, Max Black, Renford Bambrough, John Gray et al.

42. Foreword to Essays on the Political Economy by James M. Buchanan, Honolulu: University of Hawaii Press 1989.

43. “Modern Political Economy of India”, edited by Subroto Roy & William E James,  Hawaii mimeo May 21 1989.  This published for the first time a November 1955 memorandum to the Government of India by Milton Friedman.  See also 43a, 53.

43a. Preface to “Milton Friedman’s extempore comments at the 1989 Hawaii conference: on India, Israel, Palestine, the USA, Debt and its uses, Erhardt abolishing exchange controls, Etc”,  May 22 1989, published here for the first time October 31 2008.

44. Milton Friedman’s defence of my work  in 1989.

45. Theodore W. Schultz’s defence of Philosophy of Economics

1990

46. “Letter to Judge Evelyn Lance: On A Case Study in Private International Law” (Due to be published here in 2010).

47-49. Selections from advisory work on economic policy etc for Rajiv Gandhi, Leader of the Opposition in the Parliament of India,  published in 47a-49a.

1991

41b Philosophy of Economics: On the Scope of Reason in Economic Inquiry, Paperback edition.

50. “Conversations and correspondence with Rajiv Gandhi during the Gulf war, January 1991”   (Due to be published here 2010).

47a. A Memo to Rajiv I:  Stronger Secular Middle”, The Statesman, Jul 31 1991.

48a “A Memo to Rajiv II: Saving India’s Prestige”, The Statesman, Aug 1 1991.

49a “A Memo to Rajiv III: Salvation in Penny Capitalism”, The Statesman, Aug 2 1991  47b-49b “Three Memoranda to Rajiv Gandhi 1990-91”, 2007 republication here.

51. “Constitution for a Second Indian Republic”, The Saturday Statesman, April 20 1991.  Republished here 2009.

52. “On the Art of Government: Experts, Party, Cabinet and Bureaucracy”, New Delhi mimeo March 25 1991, published here July 00 2009.

1992

53. Foundations of India’s Political Economy: Towards an Agenda for the 1990s Edited and with an Introduction by Subroto Roy & William E. James New Delhi, London, Newbury Park: Sage: 1992.   Citation: Milton and Rose Friedman Two Lucky People (Chicago 1998), pp. 268-269.

54. Foundations of Pakistan’s Political Economy: Towards an Agenda for the 1990s Edited and with an Introduction by William E. James & Subroto Roy, Hawaii MS 1989, Sage: 1992, Karachi: Oxford 1993.

Reviews of 53 & 54 include: Bus. Today, Mar-Apr 1992; Political Studies March 1995; Econ Times 21 March 1993; Pakistan Development Review 1992. Hindustan Times 11 July 1992. Pacific Affairs 1993; Hindu 21 March 1993, 15 June 1993; Pakistan News International 12 June 1993. Book Reviews March 1993; Deccan Herald 2 May 1993; Pol.Econ.J. Ind. 1992. Fin Express 13 September 1992;  Statesman 16 Jan. 1993.  J. Royal Soc Asian Aff. 1994, J. Contemporary Asia, 1994 etc.

55. “Fundamental Problems of the Economies of India and Pakistan”, World Bank, Washington, mimeo  (Due to be published here 2010).

56.“The Road to Stagflation: The Coming Dirigisme in America, or, America, beware thy economists!, or Zen and Clintonomics,” Washington DC, Broad Branch Terrace, mimeo, November 17.

1993

57. “Exchange-rates and manufactured exports of South Asia”, IMF Washington DC mimeo.  Published in part in 2007-2008 as 58-62:

58. “Path of the Indian Rupee 1947-1993”, 2008.

59.  “Path of the Pakistan Rupee 1947-1993”, 2008.

60. “Path of the Sri Lankan Rupee 1948-1993”, 2008.

61. “Path of the Bangladesh Taka 1972-1993”, 2008.

62. “India, Pakistan, Sri Lanka, Bangladesh Manufactured Exports, IMF Washington DC mimeo”, published 2007.

63. “Economic Assessment of US-India Merchandise Trade”, Arlington, Virginia, mimeo, published in slight part in Indo-US Trade & Economic Cooperation, ICRIER New Delhi, 1995, and in whole 2007.

64. “Towards an Economic Solution for Kashmir”, mimeo, Arlington, Virginia, circulated in Washington DC 1993-1995, cf 82, 111 infra. Comment of Selig Harrison.

1994

65. “Comment on Indonesia”, in The Political Economy of Policy Reform edited by John Williamson, Washington, DC: Institute for International Economics.

66a “Gold reserves & the gold price in anticipation of Central Bank behaviour”, Greenwich, Connecticut, mimeo. 67b. “Portfolio optimization and foreign currency exposure hedging” Greenwich, Connecticut mimeo.

1995

68. “On the logic and commonsense of debt and payments crises: How to avoid another Mexico in India and Pakistan”, Scarsdale, NY, mimeo, May 1.

69. “Policies for Young India”, Scarsdale, NY, pp. 350, manuscript.

1996

70. US Supreme Court documents, published in part in 2008 as  “Become a US Supreme Court Justice!” 70a, 70b (Due to be published in full here in 2010 as Roy vs University of Hawaii, 1989- including the expert testimonies of Milton Friedman and Theodore W Schultz.).

71. “Key problems of macroeconomic management facing the new Indian Government”, May 17.  Scarsdale, New York, mimeo.  (Due to be published here 2010).

72. “Preventing a collapse of the rupee”, IIT Kharagpur lecture July 16 1996.

73. “The Economist’s Representation of Technological Knowledge”, Vishleshlaya lecture to the Institution of Engineers, September 15 1996, IIT Kharagpur.

1997

74. “Union and State Budgets in India”, lecture at the World Bank, Washington DC, May 00.

75. “State Budgets in India”, IIT Kharagpur mimeo, June 6.

1998

76. “Transparency and Economic Policy-Making:  An address to the Asia-Pacific Public Relations Conference” (panel on Transparency chaired by CR Irani) Jan 30 1998, published here 2008.

77. Theodore W. Schultz 1902-1998,  Feb 25.

78. “The Economic View of Human Resources”, address to a regional conference on human resources, IIT Kharagpur.

79.  “Management accounting”, lecture at Lal Bahadur Shastri Academy, Mussourie,

80a “The Original Reformer”, Outlook letters, Jan 23 1998

81. “Recent Developments in Modern Finance”, IIM Bangalore Review, 10, 1 & 2, Jan.-Jun 1998. Reprinted as “From the Management Guru’s Classroom”: 81a “An introduction to derivatives”, Business Standard/Financial Times, Bombay 18 Apr 1999; 81b “Options in the future, Apr 25 1999; 81c “What is hedging?”, May 2 1999; 81d “Teaching computers to think”, May 9 1999.

82. “Towards an Economic Solution for Kashmir”, Jun 22 1998, lecture at Heritage Foundation, Washington DC.  Cf 111 Dec 2005.

83. “Sixteen Currencies for India: A Reverse Euro Model for Monetary & Fiscal Efficacy”, Lecture at the Institute of  Economic Affairs, London, June 29 1998.  Due to be published here 2010.

84. “Fable of the Fox, the Farmer, and the Would-Be Tailors”, October  (Published here July 27 2009).

85. “A Common Man’s Guide to Pricing Financial Derivatives”, Lecture to “National Seminar on Derivatives”, Xavier Labour Research Institute, Jamshedpur, Dec. 16 1998.   See 98.

1999

86. “An Analysis of Pakistan’s War-Winning Strategy: Are We Ready for This?”, IIT Kharagpur mimeo, published in part as 86a.“Was a Pakistani Grand Strategy Discerned in Time by India?” New Delhi:  Security & Political Risk Analysis Bulletin, July 1999, Kargil issue.  See also 000

80b. “The Original Reformer”, Outlook letters, Sep 13 1999.

2000

87. “On Freedom & the Scientific Point of View”, SN Bose National Centre for Basic Sciences, Feb 17 2000.  Cf 100 below.

88. “Liberalism and Indian economic policy”, lecture at IIM Calcutta,  Indian Liberal Group Meetings Devlali, Hyderabad; also Keynote address to UGC Seminar Guntur, March 30 2002.  (Due to be published here 2010).

89. “Towards a Highly Transparent Fiscal & Monetary Framework for India’s Union & State Governments”, Invited address to Conference of State Finance Secretaries, Reserve Bank of India, Bombay, April 29, 2000.  Published 2008.

90. “On the Economics of Information Technology”, two lectures at the Indian Institute of Information Technology, Bangalore, Nov 10-11, 2000.

91. Review of A New World by Amit Chaudhuri in Literary Criterion, Mysore.

2001

92. Review of AD Shroff: Titan of Finance and Free Enterprise by Sucheta Dalal, Freedom First., January.

93. “Encounter with Rajiv Gandhi: On the Origins of the 1991 Economic Reform”, Freedom First, October. See also 93a in 2005 and  93b in 2007.

94. “A General Theory of Globalization & Modern Terrorism with Special Reference to September 11”, a keynote address to the Council for Asian Liberals & Democrats, Manila, Philippines, 16 Nov. 2001.  Published as 91a.

95. “The Case for and against The Satanic Verses: Diatribe and Dialectic as Art”, Dec 22 republished in print 95a The Statesman Festival Volume, 2006.

2002

94a “A General Theory of Globalization & Modern Terrorism with Special Reference to September 11”, in September 11 & Political Freedom in Asia, eds. Johannen, Smith & Gomez, Singapore 2002.

2002-2010

96. “Recording vivid dreams: Freud’s advice in exploring the Unconscious Mind” (Due to be published here in 2010).

2003

97. “Key principles of government accounting and audit”, IIT Kharagpur mimeo.

98. “Derivative pricing & other topics in financial theory: a student’s complete lecture notes” (Due to be published here in 2010).

2004

99. “Collapse of the Global Conversation”, International Institute for Asian Studies, Leiden, Netherlands, Jul 2004.

100. “Science, Religion, Art & the Necessity of Freedom”, a public lecture, University of Buckingham, UK, August 24 2004.  Published here 2007.

2005

93a Rajiv Gandhi and the Origins of India’s 1991 Economic Reform (this was the full story; it appeared in print for the first time in The Statesman Festival Volume 2007).

101. “Can India become an economic superpower (or will there be a monetary meltdown)?” Cardiff University Institute of Applied Macroeconomics Monetary Economics Seminar, April 13, Institute of Economic Affairs, London, April 27, Reserve Bank of India, Bombay, Chief Economist’s Seminar on Monetary Economics, May 5.

102. Margaret Thatcher’s Revolution: How it Happened and What it Meant, Edited and with an Introduction by Subroto Roy & John Clarke, London & New York: Continuum, 2005; paperback 2006; French translation by Florian Bay, 2007.

103. “Iqbal & Jinnah vs Rahmat Ali in Pakistan’s Creation”, Dawn, Karachi, Sep 3.

104. “The Mitrokhin Archives II from an Indian Perspective: A Review Article”, The Statesman, Perspective Page, Oct 11 .

105. “After the Verdict”, The Statesman, Editorial Page, Oct 20.

106.   “US Espionage Failures”, The Statesman, Perspective Page, Oct 26

107.  “Waffle But No Models of Monetary Policy”, The Statesman, Perspective Page, Oct 30.

108. “On Hindus and Muslims”, The Statesman, Perspective Page, Nov 6.

109. “Assessing Vajpayee: Hindutva True and False”, The Statesman, Editorial Page, Nov  13-14″.

110. “Fiction from the India Economic Summit”, The Statesman, Front Page, Nov 29.

111. “Solving Kashmir: On an Application of Reason”, The Statesman Editorial Page

I.  “Give the Hurriyat et al Indian Green Cards”, Dec 1

II.  “Choice of Nationality under Full Information”, Dec 2

III.  “Of Flags and Consulates in Gilgit etc”, Dec 3.

2006

112. “The Dream Team: A Critique”, The Statesman Editorial Page

I : New Delhi’s Consensus (Manmohantekidambaromics), Jan 6

II: Money, Convertibility, Inflationary Deficit Financing, Jan 7

III:  Rule of Law, Transparency, Government Accounting, Jan 8.

113. “Unaccountable Delhi: India’s Separation of Powers’ Doctrine”, The Statesman, Jan 13.

114. “Communists and Constitutions”, The Statesman, Editorial Page, Jan 22.

115. “Diplomatic Wisdom”, The Statesman, Editorial Page, Jan 31.

116.  “Mendacity & the Government Budget Constraint”, The Statesman, Front Page  Feb 3.

117. “Of Graven Images”, The Statesman, Editorial Page, Feb5.

118. “Separation of Powers, Parts 1-2”, The Statesman, Editorial Pages Feb 12-13.

119. “Public Debt, Government Fantasy”, The Statesman, Front Page Editorial Comment, Feb 22.

120. “War or Peace Parts 1-2”, The Statesman, Editorial Page, Feb 23-24.

121. “Can You Handle This Brief, Mr Chidambaram?” The Statesman, Front Page  Feb 26.

122. “A Downpayment On the Taj Mahal Anyone?”, The Statesman, Front Page  Comment on the Budget 2006-2007, Mar 1.

123. “Atoms for Peace (or War)”, The Sunday Statesman, Editorial Page Mar 5.

124. “Imperialism Redux: Business, Energy, Weapons & Foreign Policy”, The Statesman, Editorial Page, Mar 14.

125.  “Logic of Democracy”,  The Statesman, Editorial Page, Mar 30.

126. “Towards an Energy Policy”, The Sunday Statesman, Editorial Page, Apr 2.

127. “Iran’s Nationalism”, The Statesman, Editorial Page, Apr 6.

128. “A Modern Military”, The Sunday Statesman, Editorial Page, Apr 16.

129.  “On Money & Banking”, The Sunday Statesman, Editorial Page, Apr 23.

130.  “Lessons for India from Nepal’s Revolution”, The Statesman, Front Page Apr 26.

131. “Revisionist Flattery (Inder Malhotra’s Indira Gandhi: A Review Article)”, The Sunday Statesman, May 7.

132. “Modern World History”, The Sunday Statesman Editorial Page, May 7.

133. “Argumentative Indians: A Conversation with Professor Amartya Sen on Philosophy, Identity and Islam,” The Sunday Statesman,  May 14 2006.  “A Philosophical Conversation between Professor Sen and Dr Roy”,  2008.  Translated into Bengali by AA and published in 00.

134. “The Politics of Dr Singh”, The Sunday Statesman, Editorial Page, May 21.

135. “Corporate Governance & the Principal-Agent Problem”, lecture at a conference on corporate governance, Kolkata May 31.  Published here 2008.

136. “Pakistan’s Allies Parts 1-2”, The Sunday Statesman, Editorial Page, Jun 4-5.

137. “Law, Justice and J&K Parts 1-2”, The Sunday Statesman, Editorial Page, Jul 2, The Statesman Editorial Page Jul 3.

138. “The Greatest Pashtun (Khan Abdul Ghaffar Khan)”, The Sunday Statesman, Editorial Page, Jul 16.

139. “Understanding Pakistan Parts 1-2”, The Sunday Statesman, Editorial Page, Jul 30, The Statesman Editorial Page Jul 31.

140.  “Indian Money and Credit”, The Sunday Statesman, Editorial Page, Aug 6.

141.  “India’s Moon Mission”, The Sunday Statesman, Editorial Page,  Aug 13.

142. “Jaswant’s Journeyings: A Review Article”, The Sunday Statesman Magazine, Aug 27.

143. “Our Energy Interests, Parts 1-2”, The Sunday Statesman, Editorial Page, Aug 27, The Statesman Editorial Page Aug 28.

144. “Is Balochistan Doomed?”, The Sunday Statesman, Editorial Page, Sep 3 2006.

145. “Racism New and Old”, The Statesman, Editorial Page, Sep 8 2006

146. “Political Economy of India’s Energy Policy”, address to KAF-TERI conference, Goa Oct 7, published in 146a.

147. “New Foreign Policy? Seven phases of Indian foreign policy may be identifiable since Nehru”, Parts 1-2, The Sunday Statesman, Oct 8, The Statesman Oct 9.

148. “Justice & Afzal:  There is a difference between law and equity (or natural justice). The power of pardon is an equitable power. Commuting a death-sentence is a partial pardon”, The Sunday Statesman Editorial Page Oct 14

149. “Non-existent liberals (On a Liberal Party for India)”, The Sunday Statesman Editorial Page Oct 22.

150. “History of Jammu & Kashmir Parts 1-2”,  The Sunday Statesman, Oct 29, The Statesman Oct 30, Editorial Page.

151. “American Democracy: Does America need a Prime Minister and a longer-lived Legislature?”, The Sunday Statesman Nov 5.

152. “Milton Friedman A Man of Reason 1912-2006”, The Statesman Perspective Page,  Nov 22.

153. “Postscript to Milton Friedman Mahalanobis’s Plan  (The Mahalanobis-Nehru “Second Plan”) The Statesman Front Page Nov 22.

154.  “Mob Violence and Psychology”, Dec 10,  The Statesman, Editorial Page.

155. “What To Tell Musharraf: Peace Is Impossible Without Non-Aggressive Pakistani Intentions”, The Statesman Editorial Page Dec 15.

156. “Land, Liberty and Value: Government must act in good faith treating all citizens equally – not favouring organised business lobbies and organised labour over an unorganised peasantry”,  The Sunday Statesman Editorial Page Dec 31.

2007

157. “Hypocrisy of the CPI-M: Political Collapse In Bengal: A Mid-Term Election/Referendum Is Necessary”, The Statesman, Editorial Page, Jan 9.

158. “On Land-Grabbing: Dr Singh’s India, Buddhadeb’s Bengal, Modi’s Gujarat have notorious US, Soviet and Chinese examples to follow ~ distracting from the country’s real economic problems,” The Sunday Statesman, Editorial Page Jan 14.

159. “India’s Macroeconomics:  Real growth has steadily occurred because India has shared the world’s technological progress. But bad fiscal, monetary policies over decades have led to monetary weakness and capital flight” The Statesman Editorial Page Jan 20.

160. “Fiscal Instability: Interest payments quickly suck dry every year’s Budget. And rolling over old public debt means that Government Borrowing in fact much exceeds the Fiscal Deficit”, The Sunday Statesman, Editorial Page, Feb 4.

161. “Our trade and payments Parts 1-2”  (“India in World Trade and Payments”),The Sunday Statesman, Feb 11 2007, The Statesman, Feb 12 2007.

162. “Our Policy Process: Self-Styled “Planners” Have Controlled India’s Paper Money For Decades,” The Statesman, Editorial Page, Feb 20.

163. “Bengal’s Finances”, The Sunday Statesman Editorial Page, Feb 25.

164. “Fallacious Finance: Congress, BJP, CPI-M may be leading India to Hyperinflation” The Statesman Editorial Page Mar 5.

165. “Uttar Pradesh Polity and Finance: A Responsible New Govt May Want To Declare A Financial Emergency” The Statesman Editorial Page, Mar 24

166. “A scam in the making” in The Sunday Statesman Front Page Apr 1 2007, published here in full as “Swindling India”.

167. “Maharashtra’s Money: Those Who Are Part Of The Problem Are Unlikely To Be A Part Of Its Solution”, The Statesman Editorial Page Apr 24.

146a. “Political Economy of Energy Policy” in India and Energy Security edited by Anant Sudarshan and Ligia Noronha, Konrad Adenauer Stiftung, New Delhi 2007.

168.  “Presidential Qualities: Simplicity, Genuine Achievement Are Desirable; Political Ambition Is Not”, The Statesman, Editorial Page, May 8.

169. “We & Our Neighbours: Pakistanis And Bangladeshis Would Do Well To Learn From Sheikh Abdullah”, The Statesman, Editorial Page May 15.

170. “On Indian Nationhood: From Tamils To Kashmiris And Assamese And Mizos To Sikhs And Goans”, The Statesman, Editorial Page, May 25.

171. A Current Example of the Working of the Unconscious Mind, May 26.

172. Where I would have gone if I was Osama Bin Laden, May 31.

173. “US election ’08:America’s Presidential Campaign Seems Destined To Be Focussed On Iraq”,  The Statesman, Editorial Page, June 1.

174. “Home Team Advantage: On US-Iran talks and Sunni-Shia subtleties: Tehran must transcend its revolution and endorse the principle that the House of Islam has many mansions”,  The Sunday Statesman Editorial Page, June 3

175. “Unhealthy Delhi: When will normal political philosophy replace personality cults?”,  The Statesman, Editorial Page, June 11.

176. “American Turmoil: A Vice-Presidential Coup – And Now a Grassroots Counterrevolution?”,  The Statesman, Editorial Page, June 18

177.  “Political Paralysis: India has yet to develop normal conservative, liberal and socialist parties. The Nice-Housing-Effect and a little game-theory may explain the current stagnation”,  The Sunday Statesman, Editorial Page, June 24.

177. “Has America Lost? War Doctrines Of Kutusov vs Clausewitz May Help Explain Iraq War”,  The Statesman, Editorial Page, July 3.

178. “Lal Masjid ≠ Golden Temple: Wide differences are revealed between contemporary Pakistan and India by these two superficially similar military assaults on armed religious civilians”, The Sunday Statesman, Editorial Page July 15

179 “Political Stonewalling: Only Transparency Can Improve Institutions”, The Statesman, Editorial Page July 20.

180. “Gold standard etc: Fixed versus flexible exchange rates”, July 21.

181. “US Pakistan-India Policy: Delhi & Islamabad Still Look West In Defining Their Relationship”, The Statesman, Editorial Page, July 27.

182. “Works of DH Lawrence” July 30

183. “An Open Letter to Professor Amartya Sen about Singur etc”, The Statesman, Editorial Page,  July 31.

184.  “Martin Buber on Palestine and Israel (with Postscript)”, Aug 4.

185. “Auguste Rodin on Nature, Art, Beauty, Women and Love”,  Aug 7.

186. “Saving Pakistan: A Physicist/Political Philosopher May Represent Iqbal’s “Spirit of Modern Times”, The Statesman, Editorial Page, Aug 13.

187. Letter to Forbes.com  16 Aug.

188. “Need for Clarity: A poorly drafted treaty driven by business motives is a recipe for international misunderstanding”, The Sunday Statesman, Editorial Page, Aug 19.

189. “No Marxist MBAs? An amicus curiae brief for the Hon’ble High Court”,  The Statesman, FrontPage, Aug 29.

190. On Lawrence, Sep 4.

191. Dalai Lama’s Return: In the tradition of Gandhi, King, Mandela, Sep 11.

192. Of JC Bose, Patrick Geddes & the Leaf-World, Sep 12.

193. “Against Quackery: Manmohan and Sonia have violated Rajiv Gandhi’s intended reforms; the Communists have been appeased or bought; the BJP is incompetent  Parts 1-2”, in The Sunday Statesman and The Statesman, Editorial Pages of Sep 23-24.

194. Karl Georg Zinn’s 1994 Review of Philosophy of Economics, Sep 26.

195. DH Lawrence’s Phoenix, Oct 3.

93b. “Rajiv Gandhi and the Origins of India’s 1991 Economic Reform”, Statesman Festival Volume.

196. “Iran, America, Iraq: Bush’s post-Saddam Saddamism — one flip-flop too many?”, The Statesman, Editorial Page, Oct 16.

197. “Understanding China: The World Needs to Ask China to Find Her True Higher Self”,  The Statesman, Editorial Page, Oct 22.

198. “India-USA interests: Elements of a serious Indian foreign policy”,  The Statesman, Editorial Page, Oct 30.

199. “China’s India Aggression : German Historians Discover Logic Behind Communist Military Strategy”,  The Statesman, Editorial Page Special Article, Nov 5.

200. Sonia’s Lying Courtier (with Postscript), Nov 25.

201. “Surrender or Fight? War is not a cricket match or Bollywood movie. Can India fight China if it must?” The Statesman, Dec 4, Editorial Page.

202. Hutton and Desai: United in Error Dec 14

203. “China’s Commonwealth: Freedom is the Road to Resolving Taiwan, Tibet, Sinkiang”,  The Statesman, Dec 17.

2008

204. “Nixon & Mao vs India: How American foreign policy did a U-turn about Communist China’s India aggression. The Government of India should publish its official history of the 1962 war.”  The Sunday Statesman, Jan 6, The Statesman Jan 7  Editorial Page.

205. “Lessons from the 1962 War:  Beginnings of a solution to the long-standing border problem: there are distinct Tibetan, Chinese and Indian points of view that need to be mutually comprehended”, The Sunday Statesman, January 13 2008.

206. “Our Dismal Politics: Will Independent India Survive Until 2047?”, The Statesman Editorial Page, Feb 1.

207. Median Voter Model of India’s Electorate Feb 7.

208. “Anarchy in Bengal: Intra-Left bandh marks the final unravelling of “Brand Buddha””, The Sunday Statesman, Editorial Page, Feb 10.

209. Fifty years since my third birthday: on life and death.

210. “Pakistan’s Kashmir obsession: Sheikh Abdullah Relied In Politics On The French Constitution, Not Islam”, The Statesman, Editorial Page, Feb 16.

211.  A Note on the Indian Policy Process  Feb 21.

212. “Growth & Government Delusion: Progress Comes From Learning, Enterprise, Exchange, Not The Parasitic State”, The Statesman, Editorial Page, Feb 22.

213.  “How to Budget: Thrift, Not Theft, Needs to Guide Our Public Finances”, The Statesman, Editorial Page, Feb 26.

214. “India’s Budget Process (in Theory)”, The Statesman, Front Page Feb 29.

215.  “Irresponsible Governance: Congress, BJP, Communists, BSP, Sena Etc Reveal Equally Bad Traits”, The Statesman, Editorial Page, March 4.

216. “American Politics: Contest Between Obama And Clinton Affects The World”, The Statesman, Editorial Page, March 11.

217. “China’s India Example: Tibet, Xinjiang May Not Be Assimilated Like Inner Mongolia And Manchuria”, The Statesman, Editorial Page, March 25.

218. “Taxation of India’s Professional Cricket: A Proposal”, The Statesman, Editorial Page, April 1.

219. “Two cheers for Pakistan!”,  The Statesman, Editorial Page, April 7.

220. “Indian Inflation: Upside Down Economics From The New Delhi Establishment Parts 1-2”, The Statesman, Editorial Page, April 15-16.

221. “Assessing Manmohan: The Doctor of Deficit Finance should realise the currency is at stake”, The Statesman, Editorial Page Apr 25.

222. John Wisdom, Renford Bambrough: Main Philosophical Works, May 8.

223.  “All India wept”: On the death of Rajiv Gandhi,  May 21.

224. “China’s force and diplomacy: The need for realism in India” The Statesman, Editorial Page May 31.

226. Serendipity and the China-Tibet-India border problem  June 6

227. “Leadership vacuum: Time & Tide Wait For No One In Politics: India Trails Pakistan & Nepal!”, The Statesman Editorial Page June 7.

228. My meeting Jawaharlal Nehru Oct13 1962

229.  Manindranath Roy 1891-1958

230. Surendranath Roy 1860-1929

231.  The Roys of Behala 1928.

232. Sarat Chandra visits Surendranath Roy 1927

233. Nuksaan-Faida Analysis = Cost-Benefit Analysis in Hindi/Urdu Jun 30

234.  One of many reasons John R Hicks was a great economist July 3

236.  My father, Indian diplomat, in the Shah’s Tehran 1954-57  July 8

237 Distribution of Govt of India Expenditure (Net of Operational Income) 1995 July 27

238. Growth of Real Income, Money & Prices in India 1869-2008, July 28.

239. Communism from Social Democracy? But not in India or China!  July 29

240. Death of Solzhenitsyn, Aug. 3

240a. Tolstoy on Science and Art, Aug 4.

241. “Reddy`s reckoning: Where should India’s real interest rate be relative to the world?” Business Standard Aug 10

242. “Rangarajan Effect”, Business Standard Aug 24

243. My grandfather’s death in Ottawa 50 years ago today  Sep 3

244. My books in the Library of Congress and British Library Sep 12

245. On Jimmy Carter & the “India-US Nuclear Deal”, Sep 12

246. My father after presenting his credentials to President Kekkonen of Finland Sep 14 1973.

247. “October 1929?  Not!”, Business Standard, Sep 18.

248. “MK Gandhi, SN Roy, MA Jinnah in March 1919: Primary education legislation in a time of protest”

249. 122 sensible American economists Sept 26

250. Govt of India: Please call in the BBC and ask them a question Sep 27

251. “Monetary Integrity and the Rupee:  Three British Raj relics have dominated our macroeconomic policy-making” Business Standard Sep 28.

252a.  Rabindranath’s daughter writes to her friend my grandmother Oct 5

252b.  A Literary Find: Modern Poetry in Bengal, Oct 6.

253. Sarat writes to Manindranath 1931,  Oct 12

254. Origins of India’s Constitutional Politics 1913

255. Indira Gandhi in Paris, 1971

256. How the Liabilities/Assets Ratio of Indian Banks Changed from 84% in 1970 to 108% in 1998, October 20

257a. My Subjective Probabilities on India’s Moon Mission Oct 21

258. Complete History of Mankind’s Moon Missions: An Indian Citizen’s Letter to ISRO’s Chairman, Oct 22.

259. Would not a few million new immigrants solve America’s mortgage crisis? Oct 26

260. “America’s divided economists”, Business Standard Oct 26

261. One tiny prediction about the Obama Administration, Nov 5

262. Rai Bahadur Umbika Churn Rai, 1827-1902,  Nov 7 2008

263. Jawaharlal Nehru invites my father to the Mountbatten Farewell  Nov 7 2008

70a. “Become a US Supreme Court Justice! (Explorations in the Rule of Law in America) Preface” Nov 9

70b. “Become a US Supreme Court Justice! (Explorations in the Rule of Law in America) Password protected.” Nov 9.

257b. Neglecting technological progress was the basis of my pessimism about Chandrayaan,  Nov 9.

264. Of a new New Delhi myth and the success of the University of Hawaii 1986-1992 Pakistan project Nov 15

265. Pre-Partition Indian Secularism Case-Study: Fuzlul Huq and Manindranath Roy Nov 16

266. Do President-elect Obama’s Pakistan specialists suppose Maulana Azad, Dr Zakir Hussain, Sheikh Abdullah were Pakistanis (or that Sheikh Mujib wanted to remain one)?  Nov 18

267. Jews have never been killed in India for being Jews until this sad day, Nov 28.

268. In international law, Pakistan has been the perpetrator, India the victim of aggression in Mumbai,  Nov 30.

269. The Indian Revolution, Dec 1.

270. Habeas Corpus: a captured terrorist mass-murderer tells a magistrate he has not been mistreated by Mumbai’s police Dec 3

271. India’s Muslim Voices (Or, Let us be clear the Pakistan-India or Kashmir conflicts have not been Muslim-Hindu conflicts so much as intra-Muslim conflicts about Muslim identity and self-knowledge on the Indian subcontinent), Dec 4

272. “Anger Management” needed? An Oxford DPhil recommends Pakistan launch a nuclear first strike against India within minutes of war, Dec 5.

273. A Quick Comparison Between the September 11 2001 NYC-Washington attacks and the November 26-28 2008 Mumbai Massacres (An Application of the Case-by-Case Philosophical Technique of Wittgenstein, Wisdom and Bambrough), Dec 6

274. Dr Rice finally gets it right (and maybe Mrs Clinton will too) Dec 7

275. Will the Government of India’s new macroeconomic policy dampen or worsen the business-cycle (if such a cycle exists at all)? No one knows! “Where ignorance is bliss, ‘Tis folly to be wise.”  Dec 7

276. Pump-priming for car-dealers: Keynes groans in his grave (If evidence was needed of the intellectual dishonesty of New Delhi’s new macroeconomic policy, here it is) Dec 9.

277. Congratulations to Mumbai’s Police: capturing a terrorist, affording him his Habeas Corpus rights, getting him to confess within the Rule of Law, sets a new world standard  Dec 10

278. Two cheers — wait, let’s make that one cheer — for America’s Justice Department, Dec 10

279. Will Pakistan accept the bodies of nine dead terrorists who came from Pakistan to Mumbai? If so, let there be a hand-over at the Wagah border, Dec 11.

280. Kasab was a stupid, ignorant, misguided youth, manufactured by Pakistan’s terrorist masterminds into becoming a mass-murdering robot: Mahatma Gandhi’s India should punish him, get him to repent if he wishes, then perhaps rehabilitate him as a potent weapon against Pakistani terrorism Dec 12.

281. Pakistan’s New Delhi Embassy should ask for “Consular Access” to nine dead terrorists in a Mumbai morgue before asking to meet Kasab, Dec 13

282. An Indian Reply to President Zardari: Rewarding Pakistan for bad behaviour leads to schizophrenic relationships Dec 19

283. Is my prediction about Caroline Kennedy becoming US Ambassador to Britain going to be correct?  Dec 27

284. Chandrayaan adds a little good cheer! Well done, ISRO!, Dec 28

285. How sad that “Slumdog millionaire” is SO disappointing! Dec 31

289. (with Claude Arpi) “Transparency & history: India’s archives must be opened to world standards” Business Standard New Delhi Dec 31, 2008, published here Jan 1 .

2009

290. A basis of India-Pakistan cooperation on the Mumbai massacres: the ten Pakistani terrorists started off as pirates and the Al-Huseini is a pirate ship Jan 1.

291. India’s “pork-barrel politics” needs a nice (vegetarian) Hindi name! “Teli/oily politics” perhaps? (And are we next going to see a Bill of Rights for Lobbyists?) Jan 3

292. My (armchair) experience of the 1999 Kargil war (Or, “Actionable Intelligence” in the Internet age: How the Kargil effort got a little help from a desktop)  Jan 5

293. How Jammu & Kashmir’s Chief Minister Omar Abdullah can become a worthy winner of the Nobel Peace Prize: An Open Letter,  Jan 7

294. Could the Satyam/PwC fraud be the visible part of an iceberg? Where are India’s “Generally Accepted Accounting Principles”? Isn’t governance rather poor all over corporate India? Bad public finance may be a root cause Jan 8

295. Satyam does not exist: it is bankrupt, broke, kaput. Which part of this does the new “management team” not get? The assets belong to Satyam’s creditors. Jan 8

296. Jews are massacred in Mumbai and now Jews commit a massacre in Gaza!  Jan 9

297. And now for the Great Satyam Whitewash/Cover-Up/Public Subsidy! The wrong Minister appoints the wrong new Board who, probably, will choose the wrong policy Jan 12

298. Letter to Wei Jingsheng  Jan 14

299. Memo to the Hon’ble Attorneys General of Pakistan & India: How to jointly prosecute the Mumbai massacre perpetrators most expeditiously Jan 16

300. Satyam and IT-firms in general may be good candidates to become “Labour-Managed” firms Jan 18

301. “Yes we might be able to do that. Perhaps we ought to. But again, perhaps we ought not to, let me think about it…. Most important is Cromwell’s advice: Think it possible we may be mistaken!” Jan 20.

302. RAND’s study of the Mumbai attacks Jan 25

303. Didn’t Dr Obama (the new American President’s late father) once publish an article in Harvard’s Quarterly Journal of Economics? (Or did he?) Jan 25.

304. “A Dialogue in Macroeconomics” 1989 etc: sundry thoughts on US economic policy discourse Jan 30

305. American Voices: A Brief Popular History of the United States in 20 You-Tube Music Videos Feb 5

306. Jaladhar Sen writes to Manindranath at Surendranath’s death, Feb 23

307. Pakistani expansionism: India and the world need to beware of “Non-Resident Pakistanis” ruled by Rahmat Ali’s ghost, Feb 9

308. My American years Part One 1980-90: battles for academic integrity & freedom Feb 11.

309. Thanks and well done Minister Rehman Malik and the Govt of Pakistan Feb 12

310. Can President Obama resist the financial zombies (let alone slay them)? His economists need to consult Dr Anna J Schwartz Feb 14

311. A Brief History of Gilgit, Feb 18

312. Memo to UCLA Geographers: Commonsense suggests Mr Bin Laden is far away from the subcontinent Feb 20

313. The BBC gets its history and geography deliberately wrong again Feb 21

314. Bengal Legislative Council 1921, Feb 28

315. Carmichael visits Surendranath, 1916, Mar 1

316. Memo to GoI CLB: India discovered the Zero, and 51% of Zero is still Zero Mar 10

317. An Academic Database of Doctoral & Other Postgraduate Research Done at UK Universities on India, Pakistan, Sri Lanka, Bangladesh and Other Asian Countries Over 100 Years, Mar 13

318. Pakistan’s progress, Mar 18

319. Risk-aversion explains resistance to free trade, Mar 19

320. India’s incredibly volatile inflation rate!  Mar 20

321. Is “Vicky, Cristina, Barcelona” referring to an emasculation of (elite) American society?,  Mar 21

322. Just how much intellectual fraud can Delhi produce? Mar 26

323. India is not a monarchy! We urgently need to universalize the French concept of “citoyen”!  Mar 28

324. Could this be the real state of some of our higher education institutions? Mar 29

325. Progress! The BBC retracts its prevarication! Mar 30

326. Aldous Huxley’s Essay “DH Lawrence” Mar 31

327. Waffle not institutional reform is what (I predict) the “G-20 summit” will produce, April 1

328. Did a full cricket team of Indian bureaucrats follow our PM into 10 Downing Street? Count for yourself! April 3

329. Will someone please teach the BJP’s gerontocracy some Economics 101 on an emergency basis?  April 5

330. The BBC needs to determine exactly where it thinks Pakistan is!, April 5

331. Alfred Lyall on Christians, Muslims, India, China, Etc, 1908, April 6

332. An eminent economist of India passes away April 9

333. Democracy Database for the Largest Electorate Ever Seen in World History, April 12

334. Memo to the Election Commission of India April 14 2009, 9 AM, April 14

335. Caveat emptor! Satyam is taken over, April 14

336. India’s 2009 General Elections: Candidates, Parties, Symbols for Polls on 16-30 April Phases 1,2,3, April 15

337. On the general theory of expertise in democracy: reflections on what emerges from the American “torture memos” today, April 18

338. India’s 2009 General Elections: 467 constituencies (out of 543) for which candidates have been announced as of 1700hrs April 21, April 21

339. Apropos Philosophy of Economics, Comments of Sidney Hook, KJ Arrow, Milton Friedman, TW Schultz, SS Alexander, Max Black, Renford Bambrough, John Gray et al., April 22.

340. India’s 2009 General Elections: Names of all 543 Constituencies of the 15th Lok Sabha, April 22.

341. India’s 2009 General Elections: How 4125 State Assembly Constituencies comprise the 543 new Lok Sabha Constituencies, April 23.

342. Why has America’s “torture debate” yet to mention the obvious? Viz., sadism and racism, April 24

343. India’s 2009 General Elections: the advice of the late “George Eliot” (Mary Ann Evans, 1819-1880) to India’s voting public, April 24.

344. India’s 2009 General Elections: Delimitation and the Different Lists of 543 Lok Sabha Constituencies in 2009 and 2004, April 25

345. Is “Slumdog Millionaire” the single worst Best Picture ever?

346. India’s 2009 General Elections: Result of Delimitation — Old (2004) and New (2009) Lok Sabha and Assembly Constituencies, April 26

347. India’s 2009 General Elections: 7019 Candidates in 485 (out of 543) Constituencies announced as of April 26 noon April 26

348. What is Christine Fair referring to? Would the MEA kindly seek to address what she has claimed asap? April 27

349. Politics can be so entertaining 🙂 Manmohan versus Sonia on the poor old CPI(M)!, April 28

350. A Dozen Grown-Up Questions for Sonia Gandhi, Manmohan Singh, LK Advani, Sharad Pawar, Km Mayawati and Anyone Else Dreaming of Becoming/Deciding India’s PM After the 2009 General Elections, April 28

351. India’s 2009 General Elections: How drastically will the vote-share of political parties change from 2004? May 2

352. India’s 2009 General Elections: And now finally, all 8,070 Candidates across all 543 Lok Sabha Constituencies, May 5

353. India’s 2009 General Elections: The Mapping of Votes into Assembly Segments Won into Parliamentary Seats Won in the 2004 Election, May 7

354. Will Messrs Advani, Rajnath Singh & Modi ride into the sunset if the BJP comes to be trounced? (Corrected), May 10

355. India’s 2009 General Elections: 543 Matrices to Help Ordinary Citizens Audit the Election Commission’s Vote-Tallies  May 12

356. Well done Sonia-Rahul! Two hours before polls close today, I am willing to predict a big victory for you (but, please, try to get your economics right, and also, you must get Dr Singh a Lok Sabha seat if he is to be PM) May 13

357. Buddhadeb Bhattacharjee must dissolve the West Bengal Assembly if he is an honest democrat: Please try to follow Gerard Schröder’s example even slightly! May 16

358. India’s 2009 General Elections: Provisional Results from the EC as of 1400 hours Indian Standard Time May 16

359. Memo to the Hon’ble President of India: It is Sonia Gandhi, not Manmohan Singh, who should be invited to our equivalent of the “Kissing Hands” Ceremony May 16

360. Time for heads to roll in the BJP/RSS and CPI(M)!, May 17.

361. Inviting a new Prime Minister of India to form a Government: Procedure Right and Wrong  May 18

362. Starting with Procedural Error: Why has the “Cabinet” of the 14th Lok Sabha been meeting today AFTER the results of the Elections to the 15th Lok Sabha have been declared?!  May 18

363. Why has the Sonia Congress done something that the Congress under Nehru-Indira-Rajiv would not have done, namely, exaggerate the power of the Rajya Sabha and diminish the power of the Lok Sabha? May 21

364. Shouldn’t Dr Singh’s Cabinet begin with a small apology to the President of India for discourtesy? May we have reviews and reforms of protocols and practices to be followed at Rashtrapati Bhavan and elsewhere?  May 23

365. Parliament’s sovereignty has been diminished by the Executive: A record for future generations to know May 25

366. How tightly will organised Big Business be able to control economic policies this time? May 26

367. Why does India not have a Parliament ten days after the 15th Lok Sabha was elected? Nehru and Rajiv would both have been appalled May 27

368. Eleven days and counting after the 15th Lok Sabha was elected and still no Parliament of India! (But we do have 79 Ministers — might that be a world record?) May 28

369. Note to Posterity: 79 Ministers in office but no 15th Lok Sabha until June 1 2009! May 29

370. Silver Jubilee of Pricing, Planning & Politics: A Study of Economic Distortions in India May 29

371. How to Design a Better Cabinet for the Government of India May 29

372. Parliament is supposed to control the Government, not be bullied or intimidated by it: Will Rahul Gandhi be able to lead the Backbenches in the 15th Lok Sabha? June 1

373. Mistaken Macroeconomics: An Open Letter to Prime Minister Dr Manmohan Singh, June 12

374. Why did Manmohan Singh and LK Advani apologise to one another? Is Indian politics essentially collusive, not competitive, aiming only to preserve and promote the post-1947 Dilli Raj at the expense of the whole of India? We seem to have no Churchillian repartee (except perhaps from Bihar occasionally) June 18

375. Are Iran’s Revolutionaries now Reactionaries? George Orwell would have understood. A fresh poll may be the only answer Are Iran’s Revolutionaries now Reactionaries? George Orwell would have understood. A fresh poll may be the only answer  June 22

376. My March 25 1991 memo to Rajiv (which never reached him) is something the present Government seems to have followed: all for the best of course! July 12

377. Disquietude about France’s behaviour towards India on July 14 2009 July 14

378. Does the Govt. of India assume “foreign investors and analysts” are a key constituency for Indian economic policy-making? If so, why so? Have Govt. economists “learnt nothing, forgotten everything”? Some Bastille Day thoughts July 14

379. Letter to the GoI’s seniormost technical economist, May 21.July 19

380. Excuse me but young Kasab in fact confessed many months ago, immediately after he was captured – he deserves 20 or 30 years in an Indian prison, and a chance to become a model prisoner who will stand against the very terrorists who sent him on his vile mission  July 20

381. Finally, three months late, the GoI responds to American and Pakistani allegations about Balochistan July 24

382.  Thoughts, words, deeds: My work 1973-2010

M1. Map of Asia c. 1900

M2. Map of Chinese Empire c. 1900

M3. Map of Sinkiang, Tibet and Neighbours 1944

M4. China’s Secretly Built 1957 Road Through India’s Aksai Chin

M5. Map of Kashmir to Sinkiang 1944

M6. Map of India-Tibet-China-Mongolia 1959

M7. Map of India, Afghanistan, Russia, China, 1897

M8. Map of Xinjiang/Sinkiang/E Turkestan

M9. Map of Bombay/Mumbai 1909

M10-M13. Himalayan Expedition, West Sikkim 1970 – 1,2,3,4

Mistaken Macroeconomics: An Open Letter to Prime Minister Dr Manmohan Singh 12 June 2009

 

 

12 June 2009

The Hon’ble Dr Manmohan Singh, MP, Rajya Sabha

Prime Minister of India

 

 

Respected Pradhan Mantriji:

 

In September 1993 at the residence of the Indian Ambassador to Washington, I had the privilege of being introduced to you by our Ambassador the Hon’ble Siddhartha Shankar Ray, Bar-at-Law. Ambassador Ray was kind enough to introduce me saying the 1991 “Congress manifesto had been written on (my laptop) computer” – a reference to my work as adviser on economic and other policy to the late Rajiv Gandhi in his last months. I presented you a book Foundations of India’s Political Economy: Towards an Agenda for the 1990s created and edited by myself and WE James at the University of Hawaii since 1986 — the unpublished manuscript of that book had reached Rajivji by my hand when he and I first met on September 18 1990. Tragically, my pleadings in subsequent months to those around him that he seemed to my layman’s eyes vulnerable to the assassin went unheeded.

 

 

When you and I met in 1993, we had both forgotten another meeting twenty years earlier in Paris. My father had been a long-time friend of the late Brahma Kaul, ICS, and the late MG Kaul, ICS, who knew you in your early days in the Government of India. In the late summer of 1973, you had acceded to my father’s request to advise me about economics before I embarked for the London School of Economics as a freshman undergraduate. You visited our then-home in Paris for about 40 minutes despite your busy schedule as part of an Indian delegation to the Aid-India Consortium. We ended up having a tense debate about the merits (as you saw them) and demerits (as I saw them) of the Soviet influence on Indian economic “planning”. You had not expected such controversy from a lad of 18 but you were kindly disposed and offered when departing to write a letter of introduction to Amartya Sen, then teaching at the LSE, which you later sent me and which I was delighted to carry to Professor Sen.

 

 

I may add my father, back in 1973 in Paris, had predicted to me that you would become Prime Minister of India one day, and he, now in his 90s, is joined by myself in sending our warm congratulations at the start of your second term in that high office.

 

 

The controversy though that you and I had entered that Paris day in 1973 about scientific economics as applied to India, must be renewed afresh!

 

 

This is because of your categorical statement on June 9 2009 to the new 15th Lok Sabha:

 

 

“I am convinced, since our savings rate is as high as 35%, given the collective will, if all of us work together, we can achieve a growth-rate of 8%-9%, even if the world economy does not do well.” (Statement of Dr Manmohan Singh to the Lok Sabha, June 9 2009)

 

 

I am afraid there may be multiple reasons why such a statement is gravely and incorrigibly in error within scientific economics. From your high office as Prime Minister in a second term, faced perhaps with no significant opposition from either within or without your party, it is possible the effects of such an error may spell macroeconomic catastrophe for India.

 

 

As it happens, the British Labour Party politician Dr Meghnad Desai made an analogous statement to yours about India when he claimed in 2006 that China

 

 

“now has 10.4% growth on a 44 % savings rate… ”

 

Indeed the idea that China and India have had extremely high economic growth-rates based on purportedly astronomical savings rates has become a commonplace in recent years, repeated endlessly in international and domestic policy circles though perhaps without adequate basis.

 

 

 

1.   Germany & Japan

 

What, at the outset, is supposed to be measured when we speak of “growth”? Indian businessmen and their media friends seem to think “growth” refers to something like nominal earnings before tax for the organised corporate sector, or any unspecified number that can be sold to visiting foreigners to induce them to park their funds in India: “You will get a 10% return if you invest in India” to which the visitor says “Oh that must mean India has 10% growth going on”. Of such nonsense are expensive international conferences in Davos and Delhi often made.

 

You will doubtless agree the economist at least must define economic growth properly and with care — what is referred to must be annual growth of per capita inflation-adjusted Gross Domestic Product. (Per capita National Income or Net National Product would be even better if available).

 

West Germany and Japan had the highest annual per capita real GDP growth-rates in the world economy starting from devastated post-World War II initial conditions. What were their measured rates?

 

West Germany: 6.6% in 1950-1960, falling to 3.5% by 1960-1970 falling to 2.4% by 1970-1978.

 

Japan: 6.8 % in 1952-1960 rising to 9.4% in 1960-1970 falling to 3.8 % in 1970-1978.

 

Thus in recent decadesonly Japan measured a spike in the 1960s of more than 9% annual growth of real per capita GDP. Now India and China are said to be achieving 8%-10 % and more year after year routinely!

 

Perhaps we are observing an incredible phenomenon of world economic history. Or perhaps it is just something incredible, something false and misleading, like a mirage in the desert.

 

You may agree that processes of measurement of real income in India both at federal and provincial levels, still remain well short of the world standards described by the UN’s System of National Accounts 1993. The actuality of our real GDP growth may be better than what is being measured or it may be worse than what is being measured – from the point of view of public decision-making we at present simply do not know which it is, and to overly rely on such numbers in national decisions may be unwise. In any event, India’s population is growing at near 2% so even if your Government’s measured number of 8% or 9% is taken at face-value, we have to subtract 2% population growth to get per capita figures.

 

 

 

 

 

2.  Growth of the aam admi’s consumption-basket

 

 

The late Professor Milton Friedman had been an invited adviser in 1955 to the Government of India during the Second Five Year Plan’s formulation. The Government of India suppressed what he had to say and I had to publish it 34 years later in May 1989 during the 1986-1992 perestroika-for-India project that I led at the University of Hawaii in the United States. His November 1955 Memorandum to the Government of India is a chapter in the book Foundations of India’s Political Economy: Towards an Agenda for the 1990s that I and WE James created.

 

At the 1989 project-conference itself, Professor Friedman made the following astute observation about all GNP, GDP etc growth-numbers that speaks for itself:

 

 

“I don’t believe the term GNP ought to be used unless it is supplemented by a different statistic: the rate of growth of the average consumption basket consumed by the ordinary individual in the country. I think GNP rates of growth can give very misleading information. For example, you have rapid rates of growth of GNP in the Soviet Union with a declining standard of life for the people. Because GNP includes monuments and includes also other things. I’m not saying that that is the case with India; I’m just saying I would like to see the two figures together.”

 

 

You may perhaps agree upon reflection that not only may our national income growth measurements be less robust than we want, it may be better to be measuring something else instead, or as well, as a measure of the economic welfare of India’s people, namely, “the rate of growth of the average consumption basket consumed by the ordinary individual in the country”, i.e., the rate of growth of the average consumption basket consumed by the aam admi.

 

 

It would be excellent indeed if you were to instruct your Government’s economists and other spokesmen to do so this as it may be something more reliable as an indicator of our economic realities than all the waffle generated by crude aggregate growth-rates.

 

 

 

 

3.  Logic of your model

 

Thirdly, the logic needs to be spelled out of the economic model that underlies such statements as yours or Meghnad Desai’s that seek to operationally relate savings rates to aggregate growth rates in India or China. This seems not to have been done publicly in living memory by the Planning Commission or other Government economists. I have had to refer, therefore, to pages 251-253 of my own Cambridge doctoral thesis under Professor Frank Hahn thirty years ago, titled “On liberty and economic growth: preface to a philosophy for India”, where the logic of such models as yours was spelled out briefly as follows:

 

Let

 

 

Kt be capital stock

 

Yt be national output

 

It be the level of real investment

 

St be the level of real savings

 

By definition

 

It = K t+1 – Kt

 

By assumption

 

Kt = k Yt 0 < k < 1

 

St = sYt 0 < s <1

 

In equilibrium ex ante investment equals ex ante savings

 

It = St

 

Hence in equilibrium

 

sYt = K t+1 – Kt

 

Or

 

s/k = g

 

where g is defined to be the rate of growth (Y t+1-Yt)/Yt  .

 

The left hand side then defines the “warranted rate of growth” which must maintain the famous “knife-edge” with the right hand side “natural rate of growth”.

 

Your June 9 2009 Lok Sabha statement that a 35% rate of savings in India may lead to an 8%-9% rate of economic growth in India, or Meghnad Desai’s statement that a 44% rate of savings in China led to a 10.4% growth there, can only be made meaningful in the context of a logical economic model like the one I have given above.

 

[In the open-economy version of the model, let Mt be imports, Et be exports, Ft net capital inflows.

 

Assume

 

Mt = aIt + bYt 0 < a, b < 1

 

Et = E for all t

 

Balance of payments is

 

Bt = Mt – Et – Ft

 

In equilibrium It = St + Bt

 

Or

 

Ft = (s+b) Yt – (1-a) It – E is a kind of “warranted” level of net capital inflow.]

 

 

 

You may perhaps agree upon reflection that building the entire macroeconomic policy of the Government of India merely upon a piece of economic logic as simplistic as the

 

s/k = g

 

equation above, may spell an unacceptable risk to the future economic well-being of our vast population. An alternative procedural direction for macroeconomic policy, with more obviously positive and profound consequences, may have been that which I sought to persuade Rajiv Gandhi about with some success in 1990-1991. Namely, to systematically seek to improve towards normalcy the budgets, financial positions and decision-making capacities of the Union and all state and local governments as well as all public institutions, organisations, entities, and projects in general, with the aim of making our domestic money a genuine hard currency of the world again after seven decades, so that any ordinary resident of India may hold and trade precious metals and foreign exchange at his/her local bank just like all those glamorous privileged NRIs have been permitted to do. Such an alternative path has been described in “The Indian Revolution”, “Against Quackery”, “The Dream Team: A Critique”, “India’s Macroeconomics”, “Indian Inflation”, etc.

 

 

 

4. Gross exaggeration of real savings rate by misreading deposit multiplication

 

 

Specifically, I am afraid you may have been misled into thinking India’s real savings rate, s, is as high as 35% just as Meghnad Desai may have misled himself into thinking China’s real savings rate is as high as 44%.

 

 

Neither of you may have wanted to make such a claim if you had referred to the fact that over the last 25 years, the average savings rate across all OECD countries has been less than 10%. Economic theory always finds claims of discontinuous behaviour to be questionable. If the average OECD citizen has been trying to save 10% of disposable income at best, it appears prima facie odd that India’s PM claims a savings rate as high as 35% for India or a British politician has claimed a savings rate as high as 44% for China. Something may be wrong in the measurement of the allegedly astronomical savings rates of India and China. The late Professor Nicholas Kaldor himself, after all, suggested it was rich people who saved and poor people who did not for the simple reason the former had something left over to save which the latter did not!

 

 

And indeed something is wrong in the measurements. What has happened, I believe, is that there has been a misreading of the vast nominal expansion of bank deposits via deposit-multiplication in the Indian banking system, an expansion that has been caused by explosive deficit finance over the last four or five decades. That vast nominal expansion of bank-deposits has been misread as indicating growth of real savings behaviour instead. I have written and spoken about and shown this quite extensively in the last half dozen years since I first discovered it in the case of India. E.g., in a lecture titled “Can India become an economic superpower or will there be a monetary meltdown?” at Cardiff University’s Institute of Applied Macroeconomics and at London’s Institute of Economic Affairs in April 2005, as well as in May 2005 at a monetary economics seminar invited at the RBI by Dr Narendra Jadav. The same may be true of China though I have looked at it much less.

 

 

How I described this phenomenon in a 2007 article in The Statesman is this:

 

 

“Savings is indeed normally measured by adding financial and non-financial savings. Financial savings include bank-deposits. But India is not a normal country in this. Nor is China. Both have seen massive exponential growth of bank-deposits in the last few decades. Does this mean Indians and Chinese are saving phenomenally high fractions of their incomes by assiduously putting money away into their shaky nationalized banks? Sadly, it does not. What has happened is government deficit-financing has grown explosively in both countries over decades. In a “fractional reserve” banking system (i.e. a system where your bank does not keep the money you deposited there but lends out almost all of it immediately), government expenditure causes bank-lending, and bank-lending causes bank-deposits to expand. Yes there has been massive expansion of bank-deposits in India but it is a nominal paper phenomenon and does not signify superhuman savings behaviour. Indians keep their assets mostly in metals, land, property, cattle, etc., and as cash, not as bank deposits.”

 

 

An article of mine in 2008 in Business Standard put it like this:

 

 

“India has followed in peacetime over six decades what the US and Britain followed during war. Our vast growth of bank deposits in recent decades has been mostly a paper (or nominal) phenomenon caused by unlimited deficit finance in a fractional reserve banking system. Policy makers have widely misinterpreted it as indicating a real phenomenon of incredibly high savings behaviour. In an inflationary environment, people save their wealth less as paper deposits than as real assets like land, cattle, buildings, machinery, food stocks, jewellery etc.”

 

 

If you asked me “What then is India’s real savings rate?” I have little answer to give except to say I know what it is not – it is not what the Government of India says it is. It is certainly unlikely to be anywhere near the 35% you stated it to be in your June 9 2009 Lok Sabha statement. If the OECD’s real savings rate has been something like 10% out of disposable income, I might accept India’s is, say, 15% at a maximum when properly measured – far from the 35% being claimed. What I believe may have been mismeasured by you and Meghnad Desai and many others as indicating high real savings is actually the nominal or paper expansion of bank-deposits in a fractional reserve banking system induced by runaway government deficit-spending in both India and China over the last several decades.

 

 

 

 

5. Technological progress and the mainsprings of real economic growth

 

 

So much for the g and s variables in the s/k = g equation in your economic model. But the assumed constant k is a big problem too!

 

During the 1989 perestroika-for-India project-conference, Professor Friedman referred to his 1955 experience in India and said this about the assumption of a constant k:

 

“I think there was an enormously important point… That was the almost universal acceptance at that time of the view that there was a sort of technologically fixed capital output ratio. That if you wanted to develop, you just had to figure out how much capital you needed, used as a statistical technological capital output ratio, and by God the next day you could immediately tell what output you were going to achieve. That was a large part of the motivation behind some of the measures that were taken then.”

 

The crucial problem of the sort of growth-model from which your formulation relating savings to growth arises is that, with a constant k, you have necessarily neglected the real source of economic growth, which is technological progress!

 

I said in the 2007 article referred to above:

 

“Economic growth in India as elsewhere arises not because of what politicians and bureaucrats do in capital cities, but because of spontaneous technological progress, improved productivity and learning-by-doing on part of the general population. Technological progress is a very general notion, and applies to any and every production activity or commercial transaction that now can be accomplished more easily or using fewer inputs than before.”

 

In “Growth and Government Delusion” published in The Statesman last year, I described the growth process more fully like this:

 

“The mainsprings of real growth in the wealth of the individual, and so of the nation, are greater practical learning, increases in capital resources and improvements in technology. Deeper skills and improved dexterity cause output produced with fewer inputs than before, i.e. greater productivity. Adam Smith said there is “invention of a great number of machines which facilitate and abridge labour, and enable one man to do the work of many”. Consider a real life example. A fresh engineering graduate knows dynamometers are needed in testing and performance-certification of diesel engines. He strips open a meter, finds out how it works, asks engine manufacturers what design improvements they want to see, whether they will buy from him if he can make the improvement. He finds out prices and properties of machine tools needed and wages paid currently to skilled labour, calculates expected revenues and costs, and finally tries to persuade a bank of his production plans, promising to repay loans from his returns. Overcoming restrictions of religion or caste, the secular agent is spurred by expectation of future gains to approach various others with offers of contract, and so organize their efforts into one. If all his offers ~ to creditors, labour, suppliers ~ are accepted he is, for the moment, in business. He may not be for long ~ but if he succeeds his actions will have caused an improvement in design of dynamometers and a reduction in the cost of diesel engines, as well as an increase in the economy’s produced means of production (its capital stock) and in the value of contracts made. His creditors are more confident of his ability to repay, his buyers of his product quality, he himself knows more of his workers’ skills, etc. If these people enter a second and then a third and fourth set of contracts, the increase in mutual trust in coming to agreement will quickly decline in relation to the increased output of capital goods. The first source of increasing returns to scale in production, and hence the mainspring of real economic growth, arises from the successful completion of exchange. Transforming inputs into outputs necessarily takes time, and it is for that time the innovator or entrepreneur or “capitalist” or “adventurer” must persuade his creditors to trust him, whether bankers who have lent him capital or workers who have lent him labour. The essence of the enterprise (or “firm”) he tries to get underway consists of no more than the set of contracts he has entered into with the various others, his position being unique because he is the only one to know who all the others happen to be at the same time. In terms introduced by Professor Frank Hahn, the entrepreneur transforms himself from being “anonymous” to being “named” in the eyes of others, while also finding out qualities attaching to the names of those encountered in commerce. Profits earned are partly a measure of the entrepreneur’s success in this simultaneous process of discovery and advertisement. Another potential entrepreneur, fresh from engineering college, may soon pursue the pioneer’s success and start displacing his product in the market ~ eventually chasers become pioneers and then get chased themselves, and a process of dynamic competition would be underway. As it unfolds, anonymous and obscure graduates from engineering colleges become by dint of their efforts and a little luck, named and reputable firms and perhaps founders of industrial families. Multiply this simple story many times, with a few million different entrepreneurs and hundreds of thousands of different goods and services, and we shall be witnessing India’s actual Industrial Revolution, not the fake promise of it from self-seeking politicians and bureaucrats.”

 

 

Technological progress in a myriad of ways and discovery of new resources are important factors contributing to India’s growth today. But while India’s “real” economy does well, the “nominal” paper-money economy controlled by Government does not. Continuous deficit financing for half a century has led to exponential growth of public debt and broad money, and, as noted, the vast growth of nominal bank-deposits has been misinterpreted as indicating unusually high real savings behaviour when it in fact may just signal vast amounts of government debt being held by our nationalised banks. These bank assets may be liquid domestically but are illiquid internationally since our government debt is not held by domestic households as voluntary savings nor has it been a liquid asset held worldwide in foreign portfolios.

 

 

What politicians of all parties, especially your own and the BJP and CPI-M since they are the three largest, have been presiding over is exponential growth of our paper money supply, which has even reached 22% per annum. Parliament and the Government should be taking honest responsibility for this because it may certainly portend double-digit inflation (i.e., decline in the value of paper-money) perhaps as high as 14%-15% per annum, something that is certain to affect the aam admi’s economic welfare adversely.

 

 

 

 

 

 

 

6. Selling Government assets to Big Business is a bad idea in a potentially hyperinflationary economy

 

 

Respected PradhanMantriji, the record would show that I, and really I alone, 25 years ago, may have been the first among Indian economists to advocate  the privatisation of the public sector. (Viz, “Silver Jubilee of Pricing, Planning and Politics: A Study of Economic Distortions in India”.) In spite of this, I have to say clearly now that in present circumstances of a potentially hyperinflationary economy created by your Government and its predecessors, I believe your Government’s present plans to sell Government assets may be an exceptionally unwise and imprudent idea. The reasoning is very simple from within monetary economics.

 

Government every year has produced paper rupees and bank deposits in practically unlimited amounts to pay for its practically unlimited deficit financing, and it has behaved thus over decades. Such has been the nature of the macroeconomic process that all Indian political parties have been part of, whether they are aware of it or not.

 

Indian Big Business has an acute sense of this long-term nominal/paper expansion of India’s economy, and acts towards converting wherever possible its own hoards of paper rupees and rupee-denominated assets into more valuable portfolios for itself of real or durable assets, most conspicuously including hard-currency denominated assets, farm-land and urban real-estate, and, now, the physical assets of the Indian public sector. Such a path of trying to transform local domestic paper assets – produced unlimitedly by Government monetary and fiscal policy and naturally destined to depreciate — into real durable assets, is a privately rational course of action to follow in an inflationary economy. It is not rocket-science to realise the long-term path of rupee-denominated assets is downwards in comparison to the hard-currencies of the world – just compare our money supply growth and inflation rates with those of the rest of the world.

 

The Statesman of November 16 2006 had a lead editorial titled Government’s land-fraud: Cheating peasants in a hyperinflation-prone economy which said:

 

 

“There is something fundamentally dishonourable about the way the Centre, the state of West Bengal and other state governments are treating the issue of expropriating peasants, farm-workers, petty shop-keepers etc of their small plots of land in the interests of promoters, industrialists and other businessmen. Singur may be but one example of a phenomenon being seen all over the country: Hyderabad, Karnataka, Kerala, Haryana, everywhere. So-called “Special Economic Zones” will merely exacerbate the problem many times over. India and its governments do not belong only to business and industrial lobbies, and what is good for private industrialists may or may not be good for India’s people as a whole. Economic development does not necessarily come to be defined by a few factories or high-rise housing complexes being built here or there on land that has been taken over by the Government, paying paper-money compensation to existing stakeholders, and then resold to promoters or industrialists backed by powerful political interest-groups on a promise that a few thousand new jobs will be created. One fundamental problem has to do with inadequate systems of land-description and definition, implementation and recording of property rights. An equally fundamental problem has to do with fair valuation of land owned by peasants etc. in terms of an inconvertible paper-money. Every serious economist knows that “land” is defined as that specific factor of production and real asset whose supply is fixed and does not increase in response to its price. Every serious economist also knows that paper-money is that nominal asset whose price can be made to catastrophically decline by a massive increase in its supply, i.e. by Government printing more of the paper it holds a monopoly to print. For Government to compensate people with paper-money it prints itself by valuing their land on the basis of an average of the price of the last few years, is for Government to cheat them of the fair present-value of the land. That present-value of land must be calculated in the way the present-value of any asset comes to be calculated, namely, by summing the likely discounted cash-flows of future values. And those future values should account for the likelihood of a massive future inflation causing decline in the value of paper-money in view of the fact we in India have a domestic public debt of some Rs. 30 trillion (Rs. 30 lakh crore) and counting, and money supply growth rates averaging 16-17% per annum. In fact, a responsible Government would, given the inconvertible nature of the rupee, have used foreign exchange or gold as the unit of account in calculating future-values of the land. India’s peasants are probably being cheated by their Government of real assets whose value is expected to rise, receiving nominal paper assets in compensation whose value is expected to fall.”

 

Shortly afterwards the Hon’ble MP for Kolkata Dakshin, Km Mamata Banerjee, started her protest fast, riveting the nation’s attention in the winter of 2006-2007. What goes for government buying land on behalf of its businessman friends also goes, mutatis mutandis, for the public sector’s real assets being bought up by the private sector using domestic paper money in a potentially hyperinflationary economy. If your new Government wishes to see real assets of the public sector being sold for paper money, let it seek to value these assets not in inconvertible rupees that Government itself has been producing in unlimited quantities but perhaps in forex or gold-units instead!

 

 

In the 2004-2005 volume Margaret Thatcher’s Revolution: How it Happened and What it Meant, edited by myself and Professor John Clarke, there is a chapter by Professor Patrick Minford on Margaret Thatcher’s fiscal and monetary policy (macroeconomics) that was placed ahead of the chapter by Professor Martin Ricketts on Margaret Thatcher’s privatisation (microeconomics). India’s fiscal and monetary or macroeconomic problems are far worse today than Britain’s were when Margaret Thatcher came to power. We need to get our macroeconomic problems sorted before we attempt the  microeconomic privatisation of public assets.

 

It is wonderful that your young party colleague, the Hon’ble MP from Amethi, Shri Rahul Gandhi, has declined to join the present Government and instead wishes to reflect further on the “common man” and “common woman” about whom I had described his late father talking to me on September 18 1990. Certainly the aam admi is not someone to be found among India’s lobbyists of organised Big Business or organised Big Labour who have tended to control government agendas from the big cities.

 

With my warmest personal regards and respect, I remain,

Cordially yours

Subroto Roy, PhD (Cantab.), BScEcon (London)

 

see also https://independentindian.com/thoughts-words-deeds-my-work-1973-2010/rajiv-gandhi-and-the-origins-of-indias-1991-economic-reform/did-jagdish-bhagwati-originate-pioneer-intellectually-father-indias-1991-economic-reform-did-manmohan-singh-or-did-i-through-my-e/

Posted in 15th Lok Sabha, Academic economics, Academic freedom, Academic research, Adam Smith, Banking, Bengal, Big Business and Big Labour, BJP, Cambridge Univ Economics, Capital and labour, China's macroeconomics, China's savings rate, China's Economy, Congress Party, Deposit multiplication, Economic Policy, Economic Theory, Economic Theory of Growth, Economic Theory of Value, Economics of Public Finance, Enterprise and entrepeneurship, European Community, Financial Management, Financial markets, Foreign exchange controls, General equilbrium theory, Germany, Governance, Government accounting, Government Budget Constraint, Government of India, Growth rates (economic), India's Big Business, India's Government economists, India's savings rate, India's 1991 Economic Reform, India's Banking, India's Budget, India's bureaucracy, India's Capital Markets, India's corporate governance, India's Economy, India's farmers, India's Government Budget Constraint, India's Government Expenditure, India's grassroots activists, India's inflation, India's Land, India's Lok Sabha, India's Macroeconomics, India's Monetary & Fiscal Policy, India's Parliament, India's political lobbyists, India's political parties, India's poverty, India's Public Finance, India's Reserve Bank, India's Revolution, India's State Finances, India's Union-State relations, Inflation, Inflation targeting, Interest group politics, Japan, London School of Economics, Mamata Banerjee, Manmohan Singh, Margaret Thatcher, Margaret Thatcher's Revolution, Martin Ricketts, Milton Friedman, Monetary Theory, Money and banking, Non-Resident Indians, OECD savings rates, Paper money and deposits, Parliamentary Backbenchers, Political Economy, Public Choice/Public Finance, Rahul Gandhi, Rajiv Gandhi, Rajiv Gandhi's assassination, Redeposits, Siddhartha Shankar Ray. 1 Comment »

How tightly will organised Big Business be able to control economic policies this time?

The power of organised Big Business over New Delhi’s economic policies (whether Congress-led or BJP-led) was signalled by the presence in the audience at Rashtrapati Bhavan last week of several prominent lobbyists when Dr Manmohan Singh and his senior-most Cabinet colleagues were being sworn-in by the President of India. Why were such witnesses needed at such an auspicious national occasion?

Organised Big Business (both private sector and public sector) along with organised Big Labour (whose interests are represented most ably by New Delhi’s official communist parties like the CPI-M and CPI), are astutely aware of how best to advance their own economic interests; this usually gets assisted nicely enough through clever use of our comprador English-language TV, newspaper and magazine media. Shortly after the election results, lobbyists were all over commercial TV proposing things like FDI in insurance and airports etc– as if that was the meaning of the Sonia-Rahul mandate or were issues of high national priority. A typical piece of such “pretend-economics” appears in today’s business-press from a formerly Leftist Indian bureaucrat: “With its decisive victory, the new Manmohan Singh government should at last be able to implement the required second generation reforms. Their lineaments (sic) are well known and with the removal of the Left’s veto, many of those stalled in the legislature as well as those which were forestalled can now be implemented. These should be able to put India back on a 9-10 per cent per annum growth rate…”

Today’s business-press also reports that the new Government is planning to create a fresh “Disinvestment Ministry” and Dr Singh’s chief economic policy aide is “a frontrunner among the names short-listed to head the new ministry” with Cabinet rank.

Now if any enterprising doctoral student was to investigate the question, I think the evidence would show that I, and I alone – not even BR Shenoy or AD Shroff or Jagdish Bhagwati — may have been the first among Indian economists to have argued in favour of the privatisation of India’s public sector. I did so precisely 25 years ago in Pricing, Planning and Politics: A Study of Economic Distortions in India, which was so unusual for its time that it attracted the lead editorial of The Times of London on the day it was published May 29 1984, and had its due impact on Indian economic policy then and since, as has been described elsewhere here.  In 1990-1991 while with Rajiv Gandhi, I had floated an idea of literally giving away shares of the public sector to the public that owned it (as several other countries had been doing at that time), specifically perhaps giving them to the poorest panchayats in aid of their development.  In 2004-2005, upon returning to Britain after many years, I helped create the book Margaret Thatcher’s Revolution: How it Happened and What it Meant, and Margaret Thatcher if anyone was a paragon of privatisation.

That being said, I have to say I think a new Indian policy of creating a Ministry to privatise India’s public sector is probably a very BAD idea indeed in present circumstances — mainly because it will be driven by the interests of the organised Big Business lobbies that have so profoundly and subtly been able to control the New Delhi Government’s behaviour in recent decades.

Such lobbyist control is exercised often without the Government even realising or comprehending its parameters. For example, ask yourself: Is there any record anywhere of Dr Manmohan Singh, in his long career as a Government economist and then as a Rajya Sabha MP, having ever proposed before 2004-2005 that nuclear reactors were something vitally important to India’s future? And why do you suppose the most prominent Indian business lobby spent a million dollars and registered itself as an official lobbyist in Washington DC to promote the nuclear deal among American legislators? Because Big Business was feeling generous and altruistic towards the “energy security” of the ordinary people of India? Hardly.  Indian Big Business calculates and acts in its own interests, as is only to be expected under economic assumptions; those interests are frequently camouflaged by their lobbyist and media friends into seeming to be economic policy for the country as a whole.

Now our Government every year produces paper rupees and bank deposits in  practically unlimited amounts to pay for its practically unlimited deficit financing, and it has behaved thus over decades. Why we do not hear about this at all is because the most prominent Government economists themselves remain clueless — sometimes by choice, mostly by sheer ignorance — about the nature of the macroeconomic process that they are or have been part of.  (See my  “India’s Macroeconomics”, “The Dream Team: A Critique” etc elsewhere here). As for the Opposition’s economists, the less said about the CPI-M’s economists the better while the BJP, poor thing, has absolutely no economists at all!

Briefly speaking, Indian Big Business has acquired an acute sense of this long-term nominal/paper expansion of India’s economy, and as a result acts towards converting wherever possible its own hoards of paper rupees and rupee-denominated assets into more valuable portfolios for itself of real or durable assets, most conspicuously including hard-currency denominated assets, farm-land and urban real-estate, and, now, the physical assets of the Indian public sector. Such a path of trying to transform local domestic paper assets – produced unlimitedly by Government monetary and fiscal policy and naturally destined to depreciate — into real durable assets, is a privately rational course of action to follow in an inflationary economy.  It is not rocket-science  to realise the long-term path of the Indian rupee is downwards in comparison to the hard-currencies of the world – just compare our money supply growth and inflation rates with those of the rest of the world.

The Statesman of November 15 2006 had a lead editorial titled Government’s land-fraud: Cheating peasants in a hyperinflation-prone economy. It said:

“There is something fundamentally dishonourable about the way the Centre, the state of West Bengal and other state governments are treating the issue of expropriating peasants, farm-workers, petty shop-keepers etc of their small plots of land in the interests of promoters, industrialists and other businessmen. Singur may be but one example of a phenomenon being seen all over the country: Hyderabad, Karnataka, Kerala, Haryana, everywhere. So-called “Special Economic Zones” will merely exacerbate the problem many times over. India and its governments do not belong only to business and industrial lobbies, and what is good for private industrialists may or may not be good for India’s people as a whole. Economic development does not necessarily come to be defined by a few factories or high-rise housing complexes being built here or there on land that has been taken over by the Government, paying paper-money compensation to existing stakeholders, and then resold to promoters or industrialists backed by powerful political interest-groups on a promise that a few thousand new jobs will be created. One fundamental problem has to do with inadequate systems of land-description and definition, implementation and recording of property rights. An equally fundamental problem has to do with fair valuation of land owned by peasants etc. in terms of an inconvertible paper-money. Every serious economist knows that “land” is defined as that specific factor of production and real asset whose supply is fixed and does not increase in response to its price. Every serious economist also knows that paper-money is that nominal asset whose price can be made to catastrophically decline by a massive increase in its supply, i.e. by Government printing more of the paper it holds a monopoly to print. For Government to compensate people with paper-money it prints itself by valuing their land on the basis of an average of the price of the last few years, is for Government to cheat them of the fair present-value of the land. That present-value of land must be calculated in the way the present-value of any asset comes to be calculated, namely, by summing the likely discounted cash-flows of future values. And those future values should account for the likelihood of a massive future inflation causing decline in the value of paper-money in view of the fact we in India have a domestic public debt of some Rs. 30 trillion (Rs. 30 lakh crore) and counting, and money supply growth rates averaging 16-17% per annum. In fact, a responsible Government would, given the inconvertible nature of the rupee, have used foreign exchange or gold as the unit of account in calculating future-values of the land. India’s peasants are probably being cheated by their Government of real assets whose value is expected to rise, receiving nominal paper assets in compensation whose value is expected to fall.”

Mamata Banerjee started her famous protest fast-unto-death in Kolkata not long afterwards, riveting the nation’s attention in the winter of 2006-2007.

What goes for the government buying land on behalf of its businessman friends also goes, mutatis mutandis, for the public sector’s real assets being bought up by the private sector using domestic paper money in a potentially hyperinflationary economy.  If Dr Singh’s new Government wishes to see real public sector assets being sold, let the Government seek to value these assets not in inconvertible rupees which the Government itself has been producing in unlimited quantities but rather in forex or gold-units instead!

Today’s headline says “Short of cash, govt. plans to revive disinvestment ministry”. Big Business’s powerful lobbies will suggest  that real public assets must be sold  (to whom? to organised Big Business of course!) in order to solve the grave fiscal problems in an inflationary economy caused precisely by those grave  fiscal problems! What I said in 2002 at IndiaSeminar may still be found to apply: I said the BJP’s privatisation ideas “deserve to be condemned…because they have made themselves believe that the proceeds of selling the public sector should merely go into patching up the bleeding haemorrhage which is India’s fiscal and monetary situation… (w)hile…Congress were largely responsible for that haemorrhage to have occurred in the first place.”

If the new Government would like to know how to proceed more wisely, they need to read and grasp, in the book edited by myself and Professor John Clarke in 2004-2005, the chapter by Professor Patrick Minford on Margaret Thatcher’s fiscal and monetary policy (macroeconomics) before they read the chapter by Professor Martin Ricketts on Margaret Thatcher’s privatisation (microeconomics).  India’s fiscal and monetary or macroeconomic problems are far worse today than Britain’s were when Thatcher came in.

During the recent Election Campaign, I contrasted Dr Singh’s flattering praise in 2005 of the CPI-M’s Buddhadeb Bhattacharjee with Sonia Gandhi’s pro-Mamata line in 2009 saying the CPI-M had taken land away from the poor.  This may soon signal a new fault-line in the new Cabinet too on economic policy with respect to not only land but also public sector privatisation – with Dr Singh’s pro-Big Business acolytes on one side and Mamata Banerjee’s stance in favour of small-scale unorganised business and labour on the other.  Party heavyweights like Dr Singh himself and Sharad Pawar and Pranab Mukherjee will weigh in one side or the other with Sonia being asked in due course to referee.

I personally am delighted to see the New Rahul Gandhi deciding not to be in Government and to instead reflect further on the “common man” and “common woman” about whom I had described his father talking to me on September 18 1990 at his home. Certainly the “aam admi” is not someone to be found among India’s organised Big Business or organised Big Labour nor their paid lobbyists in the big cities.

Subroto Roy

Posted in Academic research, AD Shroff, Asia and the West, Big Business and Big Labour, BR Shenoy, Britain, Britain in India, British history, Economic Policy, Economic quackery, Economic Theory, Economics of exchange controls, Economics of Public Finance, Economics of real estate valuation, Financial Management, Financial markets, Foreign exchange controls, Government Budget Constraint, Government of India, India's Big Business, India's Banking, India's bureaucracy, India's Capital Markets, India's corporate finance, India's corporate governance, India's corruption, India's currency history, India's Economic History, India's Economy, India's Government Budget Constraint, India's Government Expenditure, India's Industry, India's inflation, India's Macroeconomics, India's Monetary & Fiscal Policy, India's nomenclatura, India's peasants, India's political lobbyists, India's Politics, India's pork-barrel politics, India's poverty, India's Public Finance, Inflation, Land and political economy, Macroeconomics, Mamata Banerjee, Manmohan Singh, Margaret Thatcher, Margaret Thatcher's Revolution, Martin Ricketts, Mendacity in politics, Microeconomics, Monetary Theory, Money and banking, Mumbai financial world, New Delhi, Patrick Minford, Political cynicism, Political Economy, Political mendacity, Political Science, Politics, Pork-barrel politics, Power-elites and nomenclatura, Practical wisdom, Principal-agent problem, Privatisation, Public Choice/Public Finance, Public property waste fraud, Rajiv Gandhi, Rational decisions, Singur and Nandigram, Sonia Gandhi, Statesmanship, The Statesman, The Times (London), University of Buckingham. Leave a Comment »

Letter to the GoI’s seniormost technical economist, May 21

“May 21 2009    It is wonderful to hear from you and I am honoured to find myself, perhaps accidentally, on the same list as so many of your distinguished colleagues among Government economists.

Your essay is most engaging. I am afraid I disagree with your assessment that the current problems “did not originate in the real sector of the economy” but were “triggered by the excesses of the financial system”. I have said to the contrary There is no clear path to solving the great (alleged) economic and financial crisis because no one wants to admit its roots were the overvaluation (over decades) of American real-estate, and hence American assets in general.”

There is no more real sector than real-estate itself and American real-estate has tended to be overvalued as a result of government policy since the Carter Administration; the accumulated dangers along that path came to explode in the sub-prime crisis. Here as elsewhere in economics, the financial tail has not wagged the non-financial dog but vice versa.

I have also said “(i) foreign central banks might have been left holding more bad US debt than might be remembered, and dollar depreciation and an American inflation seem to be inevitable over the next several years; (ii) all those bad mortgages and foreclosures could vanish within a year or two by playing the demographic card and inviting in a few million new immigrants into the United States; restoring a worldwide idea of an American dream fueled by mass immigration may be the surest way for the American economy to restore itself.”

Re the comparison with the Great Depression, I believe

“there are overriding differences. Most important, the American economy and the world economy are both incomparably larger today in the value of their capital stock, and there has also been enormous technological progress over eight decades. Accordingly, it would take a much vaster event than the present turbulence — say, something like an exchange of multiple nuclear warheads with Russia causing Manhattan and the City of London to be destroyed — before there was a return to something comparable to the 1929 Crash and the Great Depression that followed. Besides, the roots of the crises are different. What happened back then? In 1922, the Genoa Currency Conference wanted to correct the main defect of the pre-1914 gold standard, which was freezing the price of gold while failing to stabilise the purchasing power of money. From 1922 until about 1927, Benjamin Strong of the Federal Reserve Bank of New York adopted price-stabilisation as the new American policy-objective. Britain was off the gold standard and the USA remained on it. The USA, as a major creditor nation, saw massive gold inflows which, by traditional gold standard principles, would have caused a massive inflation. Governor Strong invented the process of “sterilisation” of those gold inflows instead and thwarted the rise in domestic dollar prices of goods and services. Strong’s death in 1928 threw the Federal Reserve System into conflict and intellectual confusion. Dollar stabilisation ended as a policy. Surplus bank money was created on the release of gold that had been previously sterilised. The traditional balance between bulls and bears in the stock-market was upset. Normally, every seller of stock is a bear and every buyer a bull. Now, amateur investors appeared as bulls attracted by the sudden stock price rises, while bears, who sold securities, failed to place their money into deposit and were instead lured into lending it as call money to brokerages who then fuelled these speculative bulls. As of October 22, 1929 about $4 billion was the extent of such speculative lending when Chase National Bank’s customers called in their money. Chase National had to follow their instructions, as did other New York banks. New York’s Stock Exchange could hardly respond to a demand for $4 billion at a short notice and collapsed. Within a year, production had fallen by 26 per cent, prices by 14 per cent, personal income by 14 per cent, and the Greatest Depression of recorded history was in progress — involuntary unemployment levels in America reaching 25 per cent. That is not, by any reading, what we have today. Yes, there has been plenty of bad lending, plenty of duping shareholders and workers and plenty of excessive managerial payoffs. It will all take a large toll, and affect markets across the world. But it will be a toll relative to our plush comfortable modern standards, not those of 1929-1933. In fact, modern decision-makers have the obvious advantage that they can look back at history and know what is not to be done. The US and the world economy are resilient enough to ride over even the extra uncertainty arising from the ongoing presidential campaign, and then some.”

These quotes are from recent publications and may be found most easily under “America’s financial crises” at my site http://www.independentindian.com.

What may be of interest to the Government of India’s economists also may be a sample of my recent short articles on India’s monetary and fiscal economics based on my research beginning with my doctoral work under Frank Hahn at Cambridge in the 1970s and followed by my work with James Buchanan and Milton Friedman in America in the 1980s and 1990s and later. One of these is even named “The Rangarajan Effect” which I first defined at a seminar invited by Dr Jadav at the RBI in May 2005!

https://independentindian.com/2008/08/24/rangarajan-effect/

https://independentindian.com/2008/09/28/monetary-integrity-and-the-rupee/

https://independentindian.com/2007/01/20/indias-macroeconomics/

https://independentindian.com/2007/02/04/fiscal-instability/

https://independentindian.com/2008/07/16/india-in-world-trade-payments/

https://independentindian.com/2007/03/05/fallacious-finance-the-congress-bjp-cpi-m-et-al-may-be-leading-india-to-hyperinflation/

https://independentindian.com/2007/02/20/our-policy-process-self-styled-planners-have-controlled-indias-paper-money-for-decades/

https://independentindian.com/2008/07/28/growth-of-real-income-money-prices-in-india-1869-2004/

https://independentindian.com/2008/07/17/growth-government-delusion/

https://independentindian.com/2008/07/09/indian-inflation-upside-down-economics-from-new-delhis-establishment/

https://independentindian.com/2008/02/26/how-to-budget-thrift-not-theft-should-guide-our-public-finances/

https://independentindian.com/2008/02/21/a-note-on-the-indian-policy-process/

With warm regards,

Cordially,

Subroto Roy, PhD (Cantab.), BScEcon(London)

Sometime Adviser to the Late Rajiv Gandhi, 1990-1991

A Dozen Grown-Up Questions for Indian Politicians Dreaming of Becoming/Deciding India’s PM After the 2009 General Elections

The 2009 General Election campaign is supposed to elect a Parliament and a Head of Government for the Republic of India, not a Head Boy/Head Girl at an urban middle-class high school or the karta of a joint family. Unfortunately, our comprador national-level media seem to be docile  and juvenile enough in face of power and privilege to want to ask only touchy-feely koochi-woochi pretty baby questions of the “candidates” for PM (several of whom are not even running as candidates for the Lok Sabha but still seem to want to be PM).   Rival candidates themselves seem to want to hurl invective and innuendo at one another, as if all this was merely some public squabble between Delhi middle-class families.

So here are a set of grown-up adult questions instead:

1. Pakistan is politically and strategically our most important neighbour. Can you assure the country that a government headed by you will have a coherent policy on both war and peace with Pakistan? How would you achieve it?

2. Do you agree with the Reagan-Gorbachev opinion that “a nuclear war cannot be won and must never be fought”? If so, what would your Government do about it?

3. If there are Indian citizens in Jammu & Kashmir presently governed by Article 370 who wish to renounce Indian nationality and remain stateless or become Pakistani/Afghan/Iranian citizens instead, would you consider letting them do so and giving them Indian “green cards” for peaceful permanent residence in J&K and India as a whole?

4. Do you know where Chumbi Valley is? If so, would your Government consider reviving the decades-old idea with China to mutually exchange permanent leases to Aksai Chin and Chumbi Valley respectively?

5. Nuclear power presently accounts as a source of about 4% of total Indian electricity; do you agree that even if nuclear power capacity alone increased by 100% over the next ten years and all other sources of electricity remained constant, nuclear power would still account for less than 8% of the total?

6. The public debt of the country  may now amount to something like Rs 30 lakh crore (Rs 30 trillion); do you find that worrisome? If so, why so? If not, why not?

7. The Government of India may be paying something like Rs 3 lakh crore (Rs 3 trillion) annually on interest payments on its debt;  do you agree that tends to suck dry every public budget even before it can try to do something worthwhile?

8.  If our money supply growth is near 22% per annum, and the rate of growth of real income is near 7% per annum, would you agree the decline in the value of money (i.e., the rate of inflation) could be as high as 15% per annum?

9. Do you agree that giving poor people direct income subsidies is a far better way to help them than by distorting market prices for everybody? If not, why not?

10. How would you seek to improve the working of  (and reduce the corruption in) the following public institutions: (1) the Army and paramilitary; (2) the Judiciary and Police; (3) Universities and technical institutes?

11. There has never been a Prime Minister in any parliamentary democracy in the world throughout the 20th Century who was also not an elected member of the Lower House; do you agree BR Ambedkar and Jawaharlal Nehru intended that for the Republic of India as well and thought it  something so obvious as  not necessary to specify in the 1950 Constitution?  What will your Government do to improve the working of the Presidency, the Lok Sabha, Rajya Sabha and State Assemblies?

12. What, personally, is your vision for India after a five-year period of a Government led by you?

Subroto Roy,

Citizen & Voter

Posted in 15th Lok Sabha, Academic research, Afghanistan, Air warfare, Aksai Chin, BR Ambedkar, China's expansionism, China-India Relations, Chumbi Valley, India's 2009 General Election, India's Army, India's Banking, India's Budget, India's bureaucracy, India's Constitution, India's constitutional politics, India's Democracy, India's Diplomacy, India's Economy, India's education, India's Election Commission, India's Electorate, India's Foreign Policy, India's Government Budget Constraint, India's Government Expenditure, India's higher education, India's History, India's inflation, India's Judiciary, India's Lok Sabha, India's Macroeconomics, India's Monetary & Fiscal Policy, India's nomenclatura, India's Personality Cults, India's political lobbyists, India's political parties, India's Politics, India's Polity, India's pork-barrel politics, India's poverty, India's Presidency, India's private TV channels, India's Public Finance, India's Rajya Sabha, India's Reserve Bank, India's Rule of Law, India's State Finances, India's Supreme Court, India's Union-State relations, India-China relations, India-Pakistan cooperation against terrorism, India-Pakistan naval cooperation, India-Pakistan peace process, India-Tibet Border, India-United States business, India-US Nuclear Deal, International diplomacy, Iran, Jammu & Kashmir, Jammu & Kashmir in international law, Jawaharlal Nehru, Just war, Laddakh, Land and political economy, LK Advani, Manmohan Singh, Pakistan's murder of Indian POWs, Pakistan's terrorist masterminds, Pakistan's terrorist training institutes, Pakistan, Balochistan, Afghanistan, Iran, Pakistani expansionism, Press and Media, Sonia Gandhi, Stonewalling in politics, Voting, War. Leave a Comment »

An eminent economist of India passes away

Dr Raja Chelliah (1922-2009) may have been India’s only serious public finance economist in living memory.   He first and more clearly than anyone warned of the out-of-control fiscal situation and the grave burden of the public debt.

Unfortunately he has left no professional successors.  The institute he founded appears to consist mostly of a name and some  buildings and a lot of wasteful bureaucratic public expenditure as is typical of the new Dilli Raj of recent decades.   I recall a heated discussion with two of his successors there in the late 1990s in which they somehow attempted to say they were beyond Government of India control and could do as they pleased (which they had in fact proceeded to do).  Neither could be said to have been familiar with Indian public finance data at the degree of precision necessary to grasp  the fiscal problems Dr Chelliah had warned against.  Like the Planning Commission and similar sets of public buildings, it is all mostly a waste;   Delhi’s “think tanks” have been largely incapable of any real thought.

Raja Chelliah very kindly met me in the summer of 1987 or the winter of 1988 at his Planning Commission offices when I was putting together the University of Hawaii perestroika-for-India project  that led in due course to sparking the 1991 reform  thanks to Rajiv Gandhi in his last months.    I wish very much I could have had  Dr Chelliah join the project but he was over-committed.

His passing means there is no one left in the Indian economic-policy establishment who has (or wishes to have ) the faintest clue about the gravity of the fiscal situation.  It may be a sign of the times that the business press is reporting on the same day  that the current head of the RBI bureaucracy has been  saying that monetising Indian fiscal deficits seems to him “benign”, pointing abroad and saying something like “Look aren’t they doing it too?”!    (Contemporary Delhi and Bombay are self-deluded and  so enamoured with   five-star hotel rooms that they may be unable to cope with  economic reality outside such an environment.)

Dr Chelliah was professionally serious, committed to truth-telling, personally modest and truly eminent in his contribution to modern Indian economic thought.

Subroto Roy, Kolkata

An Academic Database of Doctoral & Other Postgraduate Research Done at UK Universities on India, Pakistan, Sri Lanka, Bangladesh and Other Asian Countries Over 100 Years

British universities have in the last one hundred years produced a vast and unsurpassable body of doctoral and other postgraduate research relating to India, Pakistan, Sri Lanka, Bangladesh, Burma, Afghanistan, Malaysia and  other Asian countries.

The first table below contains almost 3,300 entries,  each beginning with the date of award and the degree, followed by the University (and College), followed by the title of the thesis, followed by the AUTHOR in capital letters, followed by the name of the thesis supervisor where provided.

NB: There is a second table  that follows containing a further 78 77 entries — these latter are, however, incomplete in that either the year or the degree appears not to be available.

If you are an author or thesis-supervisor or other academic representative and you are able to correct any inadvertent error or omission, please feel free to write to me promptly by email and I shall seek to account for it.  For omissions, please also identify yourself clearly and send a comment  to the post along with the necessary data that you believe should be accounted for.  Numerous typos existed in the original transcription, several of which have been corrected though many might remain.  In several cases,  it is not impossible the original transcription has mis-spelt a name but authentication could require  the original thesis to be checked.

This  database has been created from public data and is published below with the aim of encouraging further research and reflection.  It may be of special interest to notice the choice and quality of subjects in the context of particular times.

Subroto Roy

Postscript:   More than one grateful reader has called this document someone’s  “labour of love”.   I agree though I have to say it was not mine — my contribution has been merely to  transform a confused spreadsheet into HTML, editing it very slightly, removing some but not all typos yet, and publishing it.  The spreadsheet was one of a million files on my computer, which must mean I downloaded it from some public source at some time though I am afraid I have no record where, most probably in British academia.

Degree    University & College    Title    AUTHOR    Supervisor

1909    MA    Liverpool    The interaction of England and India during the early years of George III    Dorothy DUDLEY
1917    BLitt    Oxford    The history of the occupation and rural administration of Bengal by the English Company from the time of Clive to the permanent settlement under Cornwallis    W K FIRMINGER
1917    MA    Liverpool    The constitutional relations of the Marquess Wellesley with the home authorities    Beatrice L FRAZER
1917    BLitt    Oxford    Agricultural cooperation in British India    J MATTHAI
1921    BA    Cambridge    Relations between the Bombay government and the Marathi powers up to the year 1774    W S DESI
1921    MA    Manchester    The movement of opinion in England as regards Indian affairs, 1757-1773    E EMMETT    Prof Muir
1921    MA    Manchester    The relations of the Mahrattas with the British power    I Kathleen WALKER    Prof Muir
1922    BLitt    Oxford    The history of Burma to 1824    G E HARVEY
1922    PhD    London    Commercial relations between India and England, 1600-1757    B KRISHNA
1922    MSc    London    Agricultural problems and conditions in the Bombay Presidency, 1870-1914    M A TATA
1922    BLitt    Oxford    The Indian calico trade and its influence on English history    P J THOMAS
1922    MSc    London    The cotton industry in India to 1757    J N VARMA    Prof Sargeant
1922    PhD    Manchester    The administration of Bengal under Warren Hastings    Sophia WEITZMAN    Prof Muir
1923    MA    Manchester    The administrative and judicial reforms of Lord Cornwallis in Bengal (excluding the permanent settlement)    A ASPINALL    Mr Higham
1923    MA    Manchester    The Residency of Oudh during the administration of Warren Hastings    C C BRACEWELL    Prof Davis
1923    MLitt    Cambridge    Industrial evolution of India in recent times    D R GADGIL
1923    PhD    London    The Punjab as a sovereign state, 1799-1839    GULSHAM LALL    Prof Dodwell
1924    BLitt    Oxford    Development of the cotton industry in Indian from the early 19th century    S DESOUANDE
1925    MA    Liverpool    Henry Dundas and the government of India, 1784-1800    Dorothy THORNTON    Prof Veitch
1926    PhD    Cambridge    The North West Frontier of India, 1890-1909, with a survey of policy since 1849    C C DAVIES
1927    PhD    Leeds    A study of the development of agriculture in the Punjab and its economic effects    K S BAJWA
1927    BLitt    Oxford    The military system of the Mahrattas: its origin and development from the time of the Shivaji to the fall of the Mahratta empire    S SEN
1928    MA    Birmingham    The East India Company crisis, 1770-1773    R BEARD
1928    PhD    Edinburgh    A comparative study of the woollen industry in Scotland and the Punjab    J W SIRAJUDDIN    Dr Rankin
1929    PhD    London    The relations of the Governor-General and council with the Governor and council of Madras under the Regulating Act of 1773    A Das GUPTA    Prof Dodwell
1929    PhD    London, LSE    The evolution of Indian income tax, 1860-1922: a historical, critical and comparative study    J P NIYOGI
1929    PhD    London    Development of Indian ralways, 1842-1928    N SANYAL    Prof Foxwell; Dr Slater
1930    PhD    London    Financial history of Mysore, 1799-1831    M H GOPAL    Dr Slater; Prof Dodwell
1930    BLitt    Oxford, St Cath’s Soc    The development of political institutions in the state of Travancore, 1885-1924    V M ITTYERAH
1930    BLitt    Oxford    Sir Charles Crosthwaite and the consolidation of Burma    Mys J MAY-OUNG
1930    PhD    London, SOAS    Revenue administration of the Sirkars under the East India Company down to 1802    Lanka SUNDERAM
1930    PhD    London, LSE    Hastings’ experiments in the judicial administration    N J M YUSUF
1931    PhD    London    State policy and economic development in Mysore State since 1881    UDAYAM ABHAYAMBAL    Miss Anstey
1931    PhD    London    The origin and early history of public debt in India    P DATTA    Prof Coatman
1931    MA    London    Lord Macaulay and the Indian Legislative Council    C D DHARKAR    Prof Dodwell
1931    MA    London    The bilingual problem in Ceylon    T D JAYASURIYA
1931    PhD    London; LSE    Study of agricultural cooperation in India based upon foreign experience    H L PASRICHA    Prof Gregory
1931    PhD    London, UC    The administration of Mysore under Sir Mark Cubbon. 1834-1861    K N V SASTRI    Prof Dodwell

1931    PhD    London, SOAS    Administrative beginnings in British Burma, 1826-1843    Barbara J STEWART

1931/32    PhD    Cambridge, St Cath’s    English social life in India in the 18th century    T G P SPEAR
1932    PhD    London    The growth and development of the Indian tea industry and trade    S M AKHTAR    Dr Anstey
1932    PhD    London    Anglo-Sikh relations, 1839-1849    K C KHANNA    Prof Dodwell
1932    PhD    London, LSE    Indian commodity market speculation    L N MISRA    Prof Coatman
1932    PhD    London, LSE    Indian foreign trade, 1870-1930    Parimal RAY    Prof Sargent
1932    PhD    London, King’s    Ceylon under the British occupation: its political and economic development, 1795-1833    C R de SILVA    Prof Newton
1932    PhD    London    Post-war labour legislation in India – a comparison with Japan    Sasadhar SINHA    Dr Anstey
1932    PhD    London    Local finance in India    G C VARMA    Prof Coatman
1933    PhD    Leeds    Historical survey of the financial policy of the government of India from 1857 to 1900 and of its economic and other consequences    H S BHAI
1933    PhD    London    The relations between the Board of Commissioners for the affairs of India and the Court of Directors, 1784-1816    P CHANDRA    Prof Coatman
1934    PhD    London    The influence of the home government on land revenue and judicial administration in the Presidency of Fort William in Bengal from 1807-1822    B S BALIGA    Prof Dodwell
1934    MSc    Leeds    A survey of the resources of tanning materials and the leather industry of Bhopal State, India    G W DOUGLAS
1934    PhD    Edinburgh    Human geography of Bengal    Arthur GEDDES
1934    BLitt    Oxford, Somerville    A study of the legal and administrative records of Dacca as illustrating the policy of Warren Hastings in East Bengal    F M SACHSE
1934    BLitt    Oxford    Biography of Maharaja DalipSingh    K S THAPER
1935    DPhil    Oxford    The development of the Indian administrative and financial system, 1858-1905, with special reference to the relations    F J THOMAS
1936    MSc    London    British Indian administration: a historical study    K R Ramaswami AIYANGAR
1936    MA    London    Lord Ellenborough’s ideas on Indian policy    Kathleen I GARRETT    Dr Morrell
1936    MA    London    British public opinion regarding Indian policy at the time of the mutiny    Jessie HOLMES    Dr Morrell
1936    PhD    London, SOAS    The rise and fall of the Rohilla power in Hindustan, 1707-1774 AD    A F M K RAHMAN
1936/37    PhD    Edinburgh    Indian foreign trade, 1900-1931, and its economic background: a study    W B RAGHAVIAH
1937    PhD    Cambridge, Gonville    The national income of British India, 1931-1932    V K R V RAO
1937    PhD    London, LSE    Culture change in South-Western India    A AIYAPPAN
1937    PhD    London, UC    Banks and industrial finance in India    R BAGCHI
1937    PhD    London    Development of social and political ideas in Bengal, 1858-1884    B C BHATTACHARYA    Prof Dodwell
1937    MSc    Leeds    An interpretation of the distribution of the population within the United Provinces of Agra and Oudh    Nora Y BOYDELL
1937    PhD    London, LSE    Rise and growth of Indian liberalism    M A BUCH
1937    PhD    London, LSE    Industrial finance and management in India    N DAS
1937    MSc    London, LSE    The effect of the breakdown of the international gold standard on India    R DORAISWAMY
1937    PhD    London, LSE    The problem of rural indebtedness in Indian economic life    B G GHATE
1937    MSc    London, LSE    Indian coal trade    J GUHATHAKURTA
1937    PhD    London SOAS    Reorganisation of the Punjab government (1847-1857)    R C LAI

1937    PhD    London, External    An economic and regional geography of the United Provinces of Agra and Oudh    S M T RIZVI
1937    PhD    Wales    Purposes and methods of recording and accounting as applied to agriculture, with special reference to provision and use of economic data relating to agriculture in India    Arjan SINGH
1938    PhD    London, SOAS    The relations between Oudh and the East India Company from 1785-1801    P BASU
1938    PhD    London,  SOAS    East India Company’s relations with Assam, 1771-1826    S K BHUYAN
1938    PhD    London, LSE    Discretionary powers in the Indian Government with special reference to district administration    B CHAND
1938    MA    London, SOAS    The British conquest of Sind    K A CHISHTI
1938    PhD    Cambridge, Christ’s    The working of the Bengal legislative council under the Government of India Act, 1919    J G DRUMMOND
1938    MA    London    British relations with the Sikhs and Afghans, July 1823 to March 1840    E R KAPADIA
1938    PhD    London, SOAS    The East India interest and the British government, 1784-1833    C H PHILIPS
1938    PhD    London, LSE    The position of the Viceroy and Governor General of India    A RUDRA
1938    MA    London    British relations with the Sikhs and Afghans, July 1823 to March 1840    Charles WADE
1938/39    PhD    Edinburgh    Agricultural geography of the United Provinces    B N MUKERJI
1939    PhD    London, LSE    Industrial development of Mysore    R BALAKRISHNA
1939    MA    London, LSE    A general geographical account of the North West Frontier Province of India    M A K DURRANI
1939    PhD    Wales    The international production and exchange of rice with special reference to the production, market demand and consumption of rice in India and Burma    Ahmas KHAN
1939    BLitt    Oxford, St Cath’s Soc    The Governor-Generalship of Sir John Shore, 1793-1798    A W MAHMOOD
1939    PhD    London, LSE    Indian provincial finance (1919-1937) with special reference to the United Provinces    B R MISRA
1940    PhD    London, LSE    Recent economic depression in India with reference to agriculture and rural life    R K BHAN
1940    PhD    Wales    The future of agricultural cooperation in the United Provinces (with an examination of the cooperative experience)with special reference to the problems of agricultural cooperation in the United Provinces, India    H R CHATURVEDI
1940    PhD    London, LSE    An administrative study of the development of the civil service in India during the Company’s regime    A K GHOSAL
1940    PhD    Wales    The production, marketing and consumption of the chief oilseeds in India and the supply and use of oilseeds in the United Kingdom    A S KHAN
1940    PhD    Wales    Principles of agricultural planning with reference to relationships of natural resources, populations and dietaries in India and with further reference to rural development in certain provinces of India    Jaswant SINGH
1941    PhD    London, LSE    Financing of local authorities in British India    A N BANERJI
1941    PhD    London    The political and cultural history of the Punjab including the North West Frontier Province in its earliest period    L CHANDRA    Prof Barnett
1941    PhD    London, LSE    Capital development of India, 1860-1913    A KRISHNASAWMI
1941    PhD    London, LSE    Influence of European political doctrines upon the evolution of the Indian governmental institutions and practice, 1858-1938    G PRASAD
1942    MLitt    Cambridge, Fitzwilliam    Economic and political relations of India with Iran and Afghanistan since 1900    T BASU
1942    PhD    Edinburgh    A study of missionary policy and methods in Bengal from 1793 to 1905    W B S DAVIS    Prof Watt; Prof Buleigh
1943    PhD    London, LSE    Development of large scale industries in India and their localisation    N S SASTRI
1944    BLitt    Oxford, St Cath’s    Communal representation and Indian self-government    I J BAHADOORSINGH
1944    MA    London, External    The physiographic evolution of Ceylon    K KULARATNAM
1946    MA    London, SOAS    The origins and development to 1892 of the Indian National Congress    Iris M JONES
1947    PhD    London, LSE    The agricultural geography of Bihar    P DAYAL
1947    PhD    Cambridge, King’s    Consumer expenditure in India, 1931/32 to 1940/41    R L DESAI
1947    MA    London, LSE    Power resources and utilisation in the United Provinces    P K DUTT
1947    PhD    London, LSE    Cultural change with special reference to the hill tribes of Burma and Assam    Edmund Ronald LEACH
1947    PhD    London, SOAS    The judicial administration of the East India Company in Bengal, 1765-1982    B B MISRA
1947    PhD    London, LSE    The monetary policy of the Reserve Bank of India with special reference to the structural and institutional factors in the economy    K N RAJ
1948    PhD    Wales    The principles and practice of health insurance as applied to India    J AGRAWALA
1948    MSc    London, LSE    International monetary policy since 1919 with special reference to India    D C GHOSE
1948    DPhil    Oxford, Balliol    British policy on the North East Frontier of India, 1826-1886    S GUPTA
1948    DPhil    Oxford, St Cath’s    Local self-government in the Madras Presidency, 1850-1919    K K PILLAY
1948    PhD    London, LSE    The problem of the standards of the Indian currency    A SADEQUE
1948    DPhil    Oxford, Exeter    The social function of religion in a south India community    Mysore Narasimhashar SRINIVAS
1948    BLitt    Oxford, St Cath’s Society    Some aspects of agricultural marketing in India with reference to developments in western marketing systems    R S SRIVASTAVA
1948    PhD    London,. SOAS    Muslims in India: a political analysis (from 1885-906)    Rafiq ZAKARIA
1949    PhD    London, LSE    Settlements in the United Provinces of Agra and Oudh    E AHMAD
1949    PhD    London, SOAS    The growth of self-government in Assam, 1984-1919    A K BARKAKOTY
1949    PhD    London, SOAS    British administration in Assam (1825-1845)with special reference to the hill tribes on the frontier    H BARPUJARI
1949    MA    London    An enquiry into the development of training of teachers in the Punjab during the British period    Aquila B BERLAS
1949    PhD    London, LSE    The problem of federation in India with special reference to economic relations    J N BHAN
1949    PhD    London, LSE    A study of methods of national income measurements with special reference to the problems of India    V K CHOPRA
1949    PhD    London, LSE    An analysis of the Indian price structure from 1861    A K GHOSH
1949    DPhil    Oxford, Keble    The achievement of Christian missionaries in India, 1794-1833    Kenneth INGHAM
1949    PhD    Wales    The organization and methods of agricultural cooperation in the British Isles and the possibility of their application in the Central Province of India    N Y KHER
1949    PhD    London, LSE    Industrial geography of Bihar    S A MAJID
1949    PhD    London, LSE    Development of Indian public finance during the war, April 1939-March 1946    S MISRA
1949    PhD    London, LSE    A study of the methods of state regulation of wages with special reference to their possible applications in India    S B L NIGAM
1949    PhD    London, SOAS    The development of marriage in ancient India    B C PAUL
1949    PhD    St Andrews    The social and administrative reforms of Lord William Bentinck    G SEED
1950    PhD    London, LSE    Jails and borstals with special reference to West Bengal    B BHATTACHARYYA    Dr Mannheim
1950    PhD    London    The growth of local self-government in Assam, 1874-1919    A K BORKAKOTY    Prof C R Philips; Prof Hall
1950    DPhil    Oxford, Lady Margaret Hall    The problem of the Indian immigrant in British colonial policy after 1834    I Mary CUMPSTON
1950    PhD    London, LSE    Underemployment and industrialisation: a study of the basic problems with special reference to India    B DATTA
1950    PhD    London, UC    The agriculture of Mysore    G K GHORI
1950    PhD    London, SOAS    The influence of western, particularly English, political ideas on Indian political thought, with special reference to the political ideas of the Indian National Congress, 1885-1919    Sailesh C GHOSH
1950    PhD    London, LSE    Principles of unemployment insurance and assistance with special reference to their application to India    D GUPTA
1950    PhD    Newcastle    Anglo-Afghan relations, 1798-1878, with particular reference to British policy in Central Asia and on the North West Frontier of India    M KHAN
1950    PhD    London, LSE    The social consequences of imperialism with special reference to Ceylon    P R PIERIS
1950    PhD    London, LSE    An experiment in the estimation of national income and the in the construction of social accounts of India, 1945-1946    D N SAXENA    Mr Booker
1950    PhD    London, SOAS    The relations between the home and Indian governments, 1858-1870    Zahinuddin  Husain ZOBERI
1951    PhD    London, External    Memoir of the geology and mineral resources of the neighbourhood of Bentong, Pahang and adjoining portions of Selangor and Negri Sembilan, incorporating an account of the prospecting and mining activities of the Bentong District    J B ALEXANDER
1951    BLitt    Oxford, Exeter    The political organization of the plains Indians    Frederick George BAILEY
1951    BLitt    Oxford, Corpus    Southern India under Wellesley, 1798-1805    A S BENNELL    Mr C C Davies
1951    PhD    London, LSE    Problems of the Indian foreign exchanges since 1927    D GHOSH
1951    DPhil    Oxford, Balliol    The Viceroyalty of Lord Ripon, 1880-1884    S GOPAL    Mr R C Davies
1951    MA    Wales    The problem of the Straits, 1896-1936    E W GRIFFITHS
1951    PhD    London, LSE    Sources of Indian official statistics relating to production    O P GUPTA    Dr Rhodes
1951    MA    Manchester    The administration and financial control of municipalities and district boards in the UP    N K KATHIA
1951    PhD    Glasgow    The legal and constitutional implications of the evolution of Indian independence    R KEMAL
1951    PhD    Cambridge, Jesus    An analysis of the Hindu caste system in its interactions with the total social structure in certain parts of the Malabar coast    E J MILLER    Prof Hutton
1951    PhD    Cambridge, Girton    Changes in matrilineal kinship on th Malabar coast    E K MILLER    Prof Hutton
1951    PhD    Bristol    Agriculture and horticulture in India – sundry papers    K C NAIK
1951    MA    Manchester    An economic survey of West Pakistan    A SHARIF
1951    PhD    Cambridge    The interpretation of legislative powers under the Government of India Act, 1935    S D SHARMA
1951    BLitt    Oxford, St Cath’s Society    Religion and society among some of the tribes of Chota Nagpur    H N C STEVENSON
1951        London, SOAS    The political development of Burma during the period 1918-1935    OHN TIN
1951    PhD    London, LSE    The working of the Donoughmore constitution of Ceylon, 1931-1947: a study of a colonial central government by executive committees    Irripitwebadalge don Samaradasa WEERAWARDANA    Mr W H Morris-Jones
1952    PhD    London SOAS    The career of Mir Jafar Khan, 1757-1765 AD    Raya ATULA-CHANDRA    Prof C H Philips
1952    PhD    London, LSE    The development of Calcutta: a study in urban geography    M GUHA    Prof L D Stamp; Prof O H K Spate
1952    PhD    London, LSE    The East India Company’s land policy and management in Bengal from 1698 to 1784    Mazharul HUQ    Dr Anstey
1952    MA    Leeds    The social accounts relating to Ceylon    E L P JAYTILAKA
1952    MSc    London, LSE    Rural industries in India: a study in rural economic development with special reference to Madras    C K KAUSUKUTTY    Dr Anstey
1952    MSc    London, LSE    India’s balance of international payments with special reference to her food and agricultural conditions    G B KULKARNI    Dr Anstey; Dr Raeburn
1952    PhD    Cambridge    Utilitarian influence and the formation of Indian policy, 1820-1840    E T STOKES
1952    PhD    London, SOAS    Local government in India and Burma, 1908-1937: a comparative study of the evolution and working of local authorities in Bombay, the United Provinces and Burma    Hugh R TINKER    Prof Hall
1953    PhD    London, LSE    Economic geography of East Pakistan    N AHMAD    Prof Stamp
1953    MSc    London, UC    the changing pattern of India’s foreign trade, with special reference to the impact of large scale industrial development since 1919    A ALAGAPPAN
1953    PhD    London, SOAS    The East India Company and the economy of Bengal from 1704 to 1740    Sukumar BHATTACHARYYA    Prof C H Philips
1953    MA    Wales    National income of Pakistan for the year 1948-49    Z ul H CHAUDRI
1953    MLitt    Cambridge, Fitzwilliam    The influence of Western thought on social, educational, political and cultural development of India, 1818-1840    V DATTA    Dr T G P Spear
1953    MSc    Belfast    The growth of trade unions in India    S DAYAL
1953    PhD    London    The establishment of Dutch power in Ceylon, 1638-1658     K W GOONEWARDENA    Prof Hall
1953    PhD    London, LSE    The submontane region of North West Pakistan: a geographical study of its economic development    Maryam KARAM-ELAHI    Prof Buchanan; Prof Stamp
1953    PhD    London, LSE    A study of rhe measurement of national product and its distribution, with special reference to Pakistan    A H KHANDKER
1953    PhD    Edinburgh    A regional study of survival, mortality and disease in British India in relation to the geographic factors, 1921-1940    A T A LEARMONTH
1953    PhD    London, SOAS    Development of the Muslims of Bengal and Bihar, 1819-1856, with special reference to their education    A R MAALICK    Prof Philips
1953    DPhil    Oxford, Jesus    The study of the economy of self-subsisting rural communities: the methods of investigation, economic conditions and economic relations, with specific reference to India    P K MUKHOPADHYAY
1953    PhD    London, LSE    The relationship of land tenure to the economic modernization of Uttar Pradesh    W C NEALE
1953    PhD    London, Bedford    Social status of women during the past fifty years (1900=1950)    T N PATEL    Mrs B Wootton
1953    PhD    London, LSE    The state in relation to trade unions and trade disputes in India    Anand PRAKASH    Mr W H Morris-Jones; Mr Roberts
1953    MA    London, SOAS    The tribal village in Bihar    SACHCHIDANANDA    Prof C Haimendorf
1953    PhD    London, UC    Delegated legislation in India    V N SHULKA    Prof Keeton
1953    PhD