The Opposite of What Was Needed

THE reduction in the corporate tax rate by the BJP government, which would entail a transfer of Rs 1.45 lakh crores from the public exchequer to the corporate sector, has been generally seen to be insufficient for overcoming the slowdown in the Indian economy. This is not just an understatement; it is actually erroneous. This measure is the very opposite of what was needed for overcoming the slowdown.

The Roots of Indian Federalism

THE anti-colonial struggle saw the emergence of a pan-Indian national consciousness that was superimposed upon a pre-existing “nationality” consciousness based on linguistic regions. The pan-Indian national consciousness in other words was superimposed upon a Bengali or Gujarati or Tamil or Odiya consciousness; and the anti-colonial struggle saw the flourishing of both kinds of consciousness.

Alternative Perspectives on the Economic Slowdown

WITH Dr Manmohan Singh resurfacing on the political landscape and articulating once more the orthodox neoliberal position, one can now clearly discern three distinct perspectives on the current economic slowdown.The first is the orthodox neoliberal position that Dr Singh has now articulated.

FDI in the Coal Sector

JOAN Robinson, the well-known economist, had drawn attention to a fundamental difference between foreign direct investment in the manufacturing sector and foreign direct investment in a sector that extracted an exhaustible resource, such as a mineral product. This difference can be illustrated with an example.Suppose in both sectors profits worth Rs 100 are earned and repatriated abroad each year by the foreign company; and suppose the life of the mine is 10 years.

The 15th Finance Commission and Defence Expenditure

ON July 29, the terms of reference of the 15th Finance Commission were suddenly modified by a presidential order.

The Systemic Crisis of World Capitalism

THE hallmark of a systemic, as distinct from a cyclical or sporadic, crisis of capitalism is that every effort to resolve the crisis within the broad confines of the system, defined in terms of its prevailing class configuration, only worsens the crisis. It is in this sense that neoliberal capitalism has now entered a systemic crisis.

Article 370 and Kashmir’s Land Reforms

JAMMU and Kashmir was the first state in the country to introduce land reforms. There were two components of J&K’s land reforms. First, the system of absentee landlordism that had prevailed during the Maharaja’s time was completely done away with. The land of the absentee landlords was taken over without any compensation and simply distributed among the tenants; whoever was cultivating whatever amount of land on the absentee landlord’s estate as tenant was simply given ownership of that much of land without having to pay any amount of money for obtaining ownership.

Amit Shah’s Economics

IN justification of the move to end Kashmir’s special status, Amit Shah in his speech in the Rajya Sabha brought in the question of Kashmir’s “development”, arguing that closer integration with the rest of India will bring in much investment into the region. He especially appealed to the youth of Kashmir, promising that they would have larger employment opportunities.When unemployment in India has never been as bad as now in the last 45 years, to claim that closer integration with India will improve Kashmir’s employment prospects, is ironical.

A Striking Contrast

ONE of the immanent tendencies of capital is to commoditise every sphere of life; and under neoliberal capitalism where the immanent tendencies of capital are given full play, we find the sway of commoditisation reaching into new areas.

Fifty Years after Bank Nationalisation

FIFTY years ago on July 19, 1969, fourteen large private banks had been nationalised.

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Peoples Democracy

ECONOMIC NOTES