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Arvind Kejriwal is a socialist

Or, how Arvinds policies ignore all learnigns of modern economics and public administration
Sanjeev Sabhlok Preliminary Draft ! October "#$
%appy to receive input at sabhlok&gmail'com (he give away

https)**www'youtube'com*watch+ v,i-.akc/gP.0

1ontents

#' 2 am a sworn enemy of socialism, for socialism has ruined 2ndia'''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''' #


#'# #' 3reaking /ree of 2ndia'''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''# 4why should 2 ask you why Arvind is wrong+ who are you+ what are your credentials+5 .ell, here they are)''''''''''''''''''''''''''''''''''#

' 6y meeting with Arvind'''''''''''''''''''''''''''''''''''''''''''''''''''7


'# ' 6y meeting with Arvind 8ejriwal) a picture gallery'''''''''''''''''''7 Dear Arvind, the only path to corruption9free 2ndia is through policies of liberty'''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''':

$' 6y continuous prompting to Arvind to join politics'''''''''#


$'# $' -o point criticising politicians or voters' Show the alternative # Arvind, this is not about them, it is about ;O<' Are you =0A>>; better than them++'''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''#$ $'$ (he problem with the 2A1 is not its members deviation from the ideal, but its shunning politics''''''''''''''''''''''''''''''''''''''''''''''#7 $'7 ?lad to hear, finally, that 2A1 will enter politics' >ets do a reality check of policies now'''''''''''''''''''''''''''''''''''''''''''''''''''''''#! $'! 2 usually agree with Swamy Aiyar but disagree with his criticism of 2A1s decision to join politics''''''''''''''''''''''''''''''''''''#@

7' 6y position on Arvind''''''''''''''''''''''''''''''''''''''''''''''''''''#:


7'# 7' 7'$ Arvind is an honest man''''''''''''''''''''''''''''''''''''''''''''''''''''''''''#: 3ut Arvind has a very strong socialist streak''''''''''''''''''''''''''#: Deepak Parekh is wrong to undermine Arvind 8ejriwal and support 1ongress*3AP''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''#: 7'7 6y position on Arvind 8ejriwal, to clear the air for everyone' '#B 7'! 1opy of my email to Arvind 8ejriwal outlining support, but asking for a real alternative'''''''''''''''''''''''''''''''''''''''''''''''''''''''' $ 7'@ >et the parliament of 2ndia resign' 2t has no authority to serve notice to Arvind 8ejriwal''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''' 7

!' (he company Arvind keeps'''''''''''''''''''''''''''''''''''''''''''' !


!'# COldD 2A1 shows its true colours E =0D' (his is getting really unfortunate for 2ndia''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''' ! !' 1ompendium of evidence that 2A1 Cnow AAPD is socialist'''''''' ! !'$ /ully support Arvinds 1itiFens >okpal' >et citiFens pay for this >okpal and let all parties use it''''''''''''''''''''''''''''''''''''''''''''''''''' @ !'7 2 mostly agree with Prashant 3hushan' 3ut he now needs to understand Arthashastra'''''''''''''''''''''''''''''''''''''''''''''''''''''''''''' G !'! ;ogendra ;adav is a hardcore socialist, and AAP cant possibly reform with him on board''''''''''''''''''''''''''''''''''''''''''''''''''''''''''' :

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Alarming confusion in the mind of ;ogendra ;adav re) 4social justice5''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''' $"

@' Arvind thinks he is Hideology9free but he is notI''''''''''''$$


@'# Arvind 8erjriwal is a self9proclaimed socialist E thus an enemy of 2ndia, along with other socialists''''''''''''''''''''''''''''''''''''''''''''$$ @' (otal confusion in the mind of Arvind 8ejriwal' Plus Cof courseD arrogance' %ence write off AAP''''''''''''''''''''''''''''''''''''''''''''''''''$7 @'$ Arvind 8ejriwal will be a disaster for 2ndia) doesnt know what he doesnt know'''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''$G

G' 1onclusive evidence that Arvind is socialist'''''''''''''''''''$B


G'# 1an 2 see Arvind 8ejriwals theory of state Cor of Anna %aFareD, please+''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''' $B G' Arvind 8ejriwals theory of the state J#''''''''''''''''''''''''''''''''''7 G'$ 1onclusive evidence that Arvind 8ejriwal is a hard core socialist''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''' 7$ G'7 1onclusive evidence that Arvind 8ejriwal is a hard core socialist J '''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''77 G'! Arvind, glad you want freedom in 2ndia' 2 trust you understand its meaning''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''' 7B

:' .hy HSwaraj Cdirect democracyD is socialist '''''''''''''''''!#


:'# :' :'$ :'7 :'! :'@ Anna, Arvind 8ejriwals book, Swaraj, although interesting, is -O( the solution to 2ndias problemsI'''''''''''''''''''''''''''''''''''''''''!# 6y second comment on Arvind 8ejriwals Swaraj'''''''''''''''''''!7 Arvinds mistaken belief that direct democracy has anything to do with liberty'''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''!! >oknayak Aayaprakash -arayan would have (O(A>>; opposed Arvind 8ejriwals version of Swaraj'''''''''''''''''''''''''''''''''''''''''''''@" >oknayak Aayaprakash -arayan would have (O(A>>; opposed Arvind 8ejriwals version of socialism'''''''''''''''''''''''''''''''''''''''''@" Arvind*Prashant please dont talk about decentralisation while promoting 0K(=060 centralisation'''''''''''''''''''''''''''''''''''''''''''''@#

B' Arvinds anti9science environmentanalism'''''''''''''''''''''@7


B'# Stop this folly against ?6 crops, anti9science Arvind 8ejriwal @7

#"' Arvinds arrogance and lack of desire to learn'''''''''''''@@


#"'# Arvind 8ejriwal, you say that you are willing to listen to better ways to fight corruption+ (hen here they are'''''''''''''''''''''''''''''@@ #"' Arvind 8ejriwal, 2 trust you are %O-0S( about your reLuest for public input''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''' @G #"'$ Publishing Arvind 8ejriwals email of #G -ovember "# '''''@B

##' Miews of those who have worked with Arvind''''''''''''''G7


##'# Person who worked with Arvind 8ejriwal uses words like 4socialistic, hoodwinking, posturing, suspect his intentions5''''''G7

# ' Suggestions for Arvind'''''''''''''''''''''''''''''''''''''''''''''''''GB

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# '# Arvind 8ejriwal should start understanding economics instead of focusing on corruption cases''''''''''''''''''''''''''''''''''''''''''''''''''GB # ' 0conomics lesson J# for Arvind 8ejriwal E an economics illiterate'''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''' :# # '$ 0conomics lesson J for Arvind 8ejriwal E an economics illiterate'''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''' :7 # '7 2ndias 6OS( /OO>2S% man on the topic of corruption) Arvind 8ejriwal''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''' :G # '! .hy Shantanu 3hagwat is #"" times better than Arvind 8ejriwal''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''' :: # '@ (he 2A1 chases after shadows while the causes of corruption are left (O(A>>; untouched''''''''''''''''''''''''''''''''''''''''''''''''''''''':B

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#'

2 am a sworn enemy of socialism, for socialism has ruined 2ndia

#'# #'

3reaking /ree of 2ndia


Please refer to Breaking Free of Nehru for full details'

4why should 2 ask you why Arvind is wrong+ who are you+ what are your credentials+5 .ell, here they are)
?ood Luestion' %ereNs a sceptic who wants me to prove my credentails before he asks me any Luestion' .ell, here are the credentials for whatever these are worth' 2 am not claiming 2 am brilliant or eOceptional' 3ut please note that 2 62?%( have something useful to say' Experience "You know the state of Government schools and hospitals dont you? If not just visit a school in a small village or just visit a hospital in any village. you will understand" Apart from being in the districts as SD6, AD1 and Deputy 1ommissioner, 2 was also Additional Secretary %ealth Department and Secretary 0ducation Department in Assam' /or over #" years 2 not only visited eOtreme interior villages of Assam Cand later, many parts of 2ndiaD but inspected innumerable hospitals and schools, prepared reports, and dealt with an enormous range of issues including corruption' Arvind? Highly experienced in grassroots administration? Pero' Education 2 have specialised in management, economics and public policy' 0g' a doctorate from <SA in super9Luick time' Also was the only person of my QbatchQ given the job of full >ecturer in 0conomics and 1onsultant in .orld 3ank' And of course, before that 2 had taught as Professor of 6anagement at 2ndiaNs premier institute of public administration) >3S-AA' Arvind? Has he ever studied public policy? Institute of public policy 2 established one of 2ndiaNs earliest public policy think tanks in #BBB) India Policy Institute' Still going strong, although not as well as 2Nd like it to' Arvind: Any interest in public policy ever?

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Only Indian bureaucrat wit

forei!n !overnment experience

2 am the O->; 2ndian bureaucrat Cto the best of my knowledgeD who has worked for over # years in one of the worldNs best governments CMictoria, AustraliaD in a senior role' C6ainly in regulatory and economic policy E which happens to be my specialisation, although 2 also spend a lot of time stuying public administrationD' -ote that this is R<2(0 different to working in an international agency where one doesnNt get to see the intricacies of governance inside the developed world' Arvind? the remotest clue about ho Any interest in finding out? the best governments function?

A boo" # praised by one of India$s !reatest mana!ement !urus and writers Breaking Free of Nehru E "":, published by a proper publisher CAnthem PressD and commended by perhaps 2ndiaNs greatest writer, ?urcharan Das, who is listened to carefully by the likes of 3ill ?ates and other top 10Os across the world' Arvind? A flimsy t o penny credentials? rite!up published by a publisher of unkno n

%or" praised by one of t e world$s most important economists alive& 'arold (emset) %arold DemsetF sent me his book with a special note of commendation' %is work is pathbreaking and has led to hundreds of top9notch followers working in that field Cproperty rightsD' Arvind? "oes he even understand the significance of property rights? %or" praised by one of t e world$s !urus on public administration and editor of Governance& Alasdair *oberts. (his person, editor of ?overnance Cone of the worldNs topmost journals in public administrationD has commended my work and keeps in close touch' Arvind: does he even understand the basics of ne public management?

2 wonNt go into other eOamples' (here are just too many' 2 trust this will persuade my dear commentator that t ere is +I,-./ NO ONE IN IN(IA wit credentials in !overnance even remotely comparable wit mine' +o0 I might ave somet in! of interest to say1 -er aps1

2 recently conducted a 9day ?overnance =eforms 1onference at 22PA Delhi, that was attended by (- 1haturvedi and ?urcharan Das'

Arvind? #an he speak t o lines on governance reforms?

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6y meeting with Arvind

'#

6y meeting with Arvind 8ejriwal) a picture gallery


2 met Arvind 8ejriwal yesterday' 2Nll summarise my meeting with him in a separate blog post' 3ut first, to set the conteOt of some of the discussions, 2Nm presenting this picture gallery' C1lick images for a larger pictureS if you need a high resolution photo, contact me at sabhlok&gmail'comD'

-icture above) Approaching ArvindNs office) wild cows occupying half the road'

-ow you will be shown 7 photos of ArvindNs human neighbours who live practically in the same condition as wild cows, dogs and pigs'

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And now for two pictures when you enter ArvindNs office)

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Dear Arvind, the only path to corruption9free 2ndia is through policies of liberty
3efore 2 talk about my meeting with Arvind 8ejriwal let me affirm that 2A1 has indeed made a si!nificant contribution to 2ndia' ?urcharan Das, whom 2 met last evening, had many positive comments about (eam AnnaNs movement, particularly in awakening the 2ndian middle class' 2f for nothing else, Arvind 8ejriwal, the brain trust of (eam Anna, deserves credit for making a real difference to 2ndia' 3ut there is 6<1% 6O=0 .O=8 aheadI And the conversion of our aspirations for 2ndia into reality is a much harder task' So let me now talk about my meeting with Arvind' 2 will also send this blog post to Arvind so he can read this and get the opportunity to recapitulate some of the comments 2 made to him in the meeting' As many of you aware, senior /(2 member Somnath 3harti has represented Arvind 8ejriwal and 8iran 3edi in their court case against 1.? corruption' (his case was very successful and led to #7 cases of corruption being filed by 132' 3oth Somnath and Arvind are 22(ians Calong with a few other /(2 membersD' Somnath also respects Arvind deeply, and believes that ArvindNs integrity is totally beyond Luestion' ?iven my presence in 2ndia, Somnath organised a meeting between me and Arvind, held yesterday C /ebD at # noon in ArvindNs office in 8aushambi Con the way to ?haFiabadD' (he meeting was very short) only " minutes' Arvind was very busy' Anna was coming to Delhi just a little later and Arvind was being constantly interrupted by people even while he was talking to me' -ames like %egde

and 8iran 3edi were being bandied about' AnnaNs flight was slightly late so that was discussed' And so on' (here was no time for niceties or getting to know each other better' People were swarming around us' 2 had to cut to the chase' Introductions 2 introduced myself briefly, with the >3S-AA as link, a place where 2 had taught in #BB7 and Arvind had passed through as a fresh civil service recruit in #BB ' %arsh 6ander was our common friend' 2 outlined to him Cin short9handID why, after so many years in the 2AS 2 decided in /ebruary #BB: to change 2ndia' (here was no one else willing Cor capableD of bringing about the change' 2 had no choice but to do it myself' 2 then gave him an outline of the three failed political efforts 2 made in this regard' (hen told him about /(2 and why /(2 will succeed' .ac" of liberty& t e root cause of all problems in India 2 pointed out the mess outside his office, about the miserable poverty that is eOperienced by hundreds of millions of 2ndians' 9 at is the main problem in 2ndia) the total waste of our peopleNs potential' 2n this conteOt, while asking Arvind which countries he had visited, he mentioned Camong othersD 8orea' (hat was an eOcellent hook' 2 therefore spoke to him about the key difference between -orth and South 8orea E which 2 have discussed in detail in my book, Breaking Free of Nehru$ (he difference is all about liberty' 2 eOplained that good governance, underpinned by the principles of liberty, is the best way to remove corruption and bring unprecedented prosperity to 2ndia Csuch as to the people who live in misery just outside his officeD' 2 eOplained how some of the worldNs best academics such as Alasdair =oberts Cwho has taught at >3S-AAD have vetted my book' .e therefore need to understand and follow world9best models of governance in 2ndia' Our job is to ensure the kind of governance that will enable our poor to create wealth' (his will A<(O6A(21A>>; eliminate both poverty AN( corruption' 2 added that corruption is a symptom, -O( the cause of 2ndias many problems' 1orruption is like malarial fever while the cause Cmalarial parasiteD is lack of liberty and bad policies' 0ven Anna, Arvind admitted, agrees that >okpal will only act like a band9aid and more fundamental reforms will be needed' .e need not just the enforcement of rules Cor stronger punishment to the corruptD, but the right kind of rules' Arvind s ould offer India is leaders ip to India and (I*E:9./ c an!e

2 pointed out that in order to change the lives of our desperately poor people, we must not provide mere band9aids or a patchwork of QsolutionsQ unrelated to any fundamental principle of governance' .e must provide a comprehensive solution based on the principle of liberty' And the only way to do this is by directly providing political leadership to 2ndia through the parliament' 2 mentioned that all his 2A1 work will make not t e sli! test dent in India$s !overnance' .hat is needed is to ta"e over t e !overnment and directly provide the governance that 2ndia needs'
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2 mentioned that the Director of the Academy in #B:7 C26 PuriD used to tell us that if we really want to change 2ndia we have no choice but to enter politics' And when a probationer from our #B: batch asked 2ndira ?andhi in #B:$ Cduring a meeting in the P6s houseD why there was so much corruption in the 1ongress party, she challenged the probationer thus) 2f you can do better and remove corruption why dont you do it yourself+ (hat same challenge remains today, $" years later' >et us not preach nor eOhort others to do things for us' 2n our free democracy, we are obliged to directly do it ourselves' 2 have taken up that challenge in /ebruary #BB:' And 2 want all the best leaders of 2ndia to take up that challenge' .hy is it that we have such high Luality people in 2ndia and such low Luality results+ (he time to complain is over' -ow it is time to D2=01(>; do the job' 2 added to Arvind that 2m interested O->; in him E personally E and not his group' 2m looking P<=0>; for high Luality youn! leaders for tomorrowNs 2ndia' 3ut in addition to being honest these young people must understand the right policies' (hat means Arvind will need to understand the concept of liberty better, and pay serious attention to policies' %e agreed to read any material that 2 may send to him' 2 promised to do so soon' 2 also eOplained that on /(2 we only take people who are determined to become Prime 6inister of 2ndia' 2f people dont have such determination E to offer their P0=SO-A> services to 2ndia as its leader, they should not waste our time' 2ndeed, on /(2 there are at least 6< Arvind Kejriwals today Cfiguratively speakingD' (hey are currently not well known Ce'g' Somnath 3haratiD, just as Arvind was not well known when he first started his work' 3ut the capability is there' #"" per centI 2 also eOplained that some well9 known leaders like AP of >okSatta are effectively members of /(2' (herefore Arvind can consider joining /(2 when he is ready' 2Nll provide more details to Arvind via email' 9 at0 in sum0 was t e discussion& aD Showing Arvind that doing 2A1 work is fine so long as everyone in 2A1 knows that this work will -O( change Cby even O-0 32(D the lives of the poor people who live like pigs just outside Arvinds office' bD Showing Arvind that our fundamental problem is lack of liberty Cwith accountabilityD' cD Showing Arvind that without directly offering our P0=SO-A> political leadership to 2ndia, we are never going to be free of the corrupt rascals who govern 2ndia' >et us battle these thugs at the hustings' >et us take over the parliament' Our meeting ended on a pleasant note, with a photo, shown below'

1<

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6y continuous prompting to Arvind to join politics

$'#

-o point criticising politicians or voters' Show the alternative


Arvind Kejriwal0 now you ave stepped well out of order Arvind 8ejriwal is a young man with ideals, something 2ndia must always welcome and encourage' %owever, 2Nve had occasion to Luestion young ArvindNs understanding of basic policy over the last year, even as 2Nve encouraged him C2Nve sent messages to him through those who know himD to learn more and find out the underlying causes of 2ndiaNs many problems' %is S0M0=0 policy ignorance is becoming a big obstacle in his personal growth as a leader' -ow, like 8iran 3edi, who stepped .0>> O<( of order when she made a futile attempt to demean 2ndiaNs parliament, Arvind has now gone well beyond what in 2ndia we would call Qhis aukatQ' %e is both demeaning the 2ndians who believe in Shiva Cin whom he obviously doesnNt have any faithD, and A>> 2ndians who have voted diligently for their representatives to this parliament' =asically Arvind as insulted almost everyone in India in one !o. Arvind is a little small boy0 a little small boy wit a bi! e!o. %e can surely say such silly and stupid things within his family but he is now a public leader, and cannot say every useless thought that comes to his ignorant mind' C(he other young boy of 2ndian politics E =ahul ?andhi E seems to be Luite silly as well E and deeply confused about policy E but is far more mature than Arvind'D ArvindNs knowledge of basic politics Cpolitical science theoryD seems to be close to Fero' India as a few major !ood t in!s0 and one of t ese is our democracy # no matter ow flawed. 2ndeed, as 2Nve shown in BFN, 2ndiaNs democracy only needs mild tin"erin! to make it perform wonderfully' /or him not to understand this shows both his ignorance of basic political science A-D of basic policy' 2Nve A>.A;S argued that alleged QfoolsQ like >alu ;adav E and even the most corrupt politician in 2ndia E provide /A= ?=0A(0= service to 2ndia than idle QeducatedQ chatterboOes Ce'g' journalists, think tanksD who criticise these people but have nothing better to offer' (o me, even -arendra 6odi is definitely better for 2ndia than our typical Qthink tankQ or QidealisticQ young man' ,uc better to ave a poorly

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functionin! democracy t an a dictators ip w ere life and liberty is constantly under t reat >t at includes t e possible dictators ip of medievalists li"e Anna 'a)are or even ?and i imself@. 2 have said clearly that most of our 6Ps are (%<?S' 2 have no doubt that most of them are actual criminals, as well Csome, indeed, are murderersD' And yet I ave Afait A in India$s -arliament # for it is better to ave a poorly functionin! parliament t an t e dictators ip of alfBba"ed medievalists li"e Anna 'a)are or CuarterBba"ed policy i!norants li"e Arvind Kejriwal. ?overning 2ndia is no trivial task' 2ndia is badly governed, no doubt, but that is because we don$t ave AN/ sensible political !roup willin! to offer India t e ri! t set of policies. 9 at is not t e fault of t e parliament or parliamentarians. 9 at$s just t e reality # t at India (OE+N$9 'ADE ?OO( .EA(E*+' CAnd no%%%% Anna Ha&are or 'iran Bedi or Arvind 'e(ri al are N)* good leaders%D (he /reedom (eam of 2ndia (OE+ offer the right policies, but it doesnNt yet have sufficient number of good leaders to offer' /or some god9 forsaken reason, in this %<?0 country of # billion people there are not even #""" leaders who will contest elections under the banner of liberty and offer 2ndia #"" times better governance' 9 e institution of t e parliament is merely a receptacle for t e leaders India produces. So long as we have S%ODD; >0AD0=S we will inevitably get S%ODD; PA=>2A60-(A=2A-S' (his a capability issue, not an issue with the parliament' (he CoriginalD design of 2ndian parliament represents some of the best ideas of the political science of liberty' 2t can Cand mustD be QfiOedQ, but t e fixin! is needed more wit t e -EO-.E of India >w o refuse to eit er learn about !ood policy or to come forward as leaders0 if t ey understand !ood policy@ t an wit t e parliament. ;ou can have the best aeroplane but if you canNt find pilots to fly the plane, it will crash' (hatNs what is happening with 2ndia' So, 6r 8ejriwal, please try to look within' +top pointin! fin!ers at t e parliament >or parliamentarians@ w en you0 yourself A*E NO9 EI9 9O .EA(.

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Arvind, this is not about them, it is about ;O<' Are you =0A>>; better than them++
2 agree /<>>; with Arvind) )n +aturday, 'e(ri al had said at a rally that -all types of elements have entered .arliament, including robbers, murderers and rapists/$ )n

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+unday, he follo ed it up ith a ritten statement: -0 did not say anything rong and 0 stand by my statement$/ 1laborating, he said, of the 234 5.s against hom criminal cases had been registered, 26 faced charges of murder, 47 of attempt to murder, 22 of cheating under +ection 647 and 28 of abduction$ He said five candidates in 9ttar .radesh elections had charges of rape against them$ 0n the present .arliament, charges of corruption had been slapped on a number of 5.s like 'animo&hi, A :a(a, ;alu .rasad and 5ulayam +ingh <adav$ -Had the #B0 been free, . #hidambaram too ould have been facing a case of corruption,/ he said$ =+ource> .here 2 disagree is this) that it is not enough to restate 2ndiaNs problem for the # millionth time' .e all know the reality of the =AS1A>S who govern 2ndia' 2t is not enough to keep saying that a child is sick' .e need to 1<=0 the child' Arvind, the laws of 2ndia have been made so that O->; the corrupt can join politics' .e need to change these laws to ensure that good people can join politics' All this is described in detail in BFN' 3ut now the problem) %ow does one change these laws+ -one of the eOisting politicians will change them' So the solution is to D2=01(>; take over the parliament and change the laws' (here is no time to waste in criticism of these goons' .e need to (A80 OM0= (%0 PA=>2A60-(' P0=2OD' And that is not very hard if all of 2ndiaNs good people who want >230=(; and good governance come together' 2f you are really better than these thugs then please offer yourself as leader' 0lse hold your peace and go home' 6ere complaining DO0S -O( 6A((0=' .e have complained for @" years' -ow it is time for 3A((>0' At the hustings' (hey vs' us' >etNs do it'

$'$

(he problem with the 2A1 is not its members deviation from the ideal, but its shunning politics
(he 2A1 has defended its membersN deviations from the straight and narrow here' >et me note that it is not such QirregularitiesQ of some of its members E including Anna %aFare himself E that bother me as much as

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the determination of IA: membersF 9eam Anna to stay out of politics' I detest t ose w o sit in jud!ement over ot ers w ile actin! coy and pretendin! to be AaboveA politics. 2f you are so good why hide from the hustings+ .hy not give the people of 2ndia a chance to elect you+ 6y grievance is also that this team is not a team' (hese people donNt seem willing to work together with ot ers # w o are eCually or ,O*E committed to a better India 9 to A1(<A>>; change 2ndia' (his QteamQ is thus not willing to listen to ideas with significant merit but continues to chase after dead ends like the Aan >okpal bill which canNt even make the sli! test dent in 2ndiaNs corruption nor address the many thousands of serious issues of misgovernance' 2Nve tried my best to contact these people but they are intent on their dead end QsolutionsQ E and refusal to join politics' (he people of 2ndia today therefore simply have -O 1%O210 but to vote either 1ongress or 3AP E and these parties can NEDE*, will NEDE* solve 2ndiaNs problems' (hey are the problem itself' So the solution is to offer 2ndia a 6<1% better political party' (hatNs why /(2'(hatNs why we need all good people to come together on a platform of >230=(; and agree the policies they want to offer the people E (%0- contest elections' 2f you meet any of of the 2A1 QteamQ members, please ask them why they refuse to join politics' (hatNs not citiFenship' (hatNs cowardice'

$'7

?lad to hear, finally, that 2A1 will enter politics' >ets do a reality check of policies now'
2t took AP many years of prodding to enter politics' %e finally did, in ""@' (hat was great news for 2ndia' 2t is also good that the 2A1 has /2-A>>; listened to the voice of reason in terms of approach to reform) an issue 2Nve been raising for a long timeS and will no lon!er waste time in useless and inappropriate d arnas and dramas' IA: will now join politics. Now t e real battle be!ins. At this time, it is crucial that 2 should see a different, E*EE(O, .ODIN? Arvind 8ejriwal' (hat Arvind will need to be different to the socialist9leaning 8ejriwal we have seen so far' 2A1, DO -O( announce a political party' (hat will be fatal' ;ouNll merely become one more >ok Satta, one more Aago party' ?uaranteed to lose'

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/irst let A>> good leaders assemble and hammer out the policies 2ndia needs' (hatNs what /(2 is doing' Aoin /(2 Csubject to your agreeing to classical liberalismD' Politics must be based on CaD ?OOD /A2(% and CbD A?=00D PO>2120S' ?ood faith will be demonstrated by ensuring that 2A1 engages with .o" +atta and leaders from E9I' .e need ?OOD PO>21;, not just politics' >et that be clear to everyone from the word QgoQ' (he journey has begun, but challenges are many' 2 look forward to an 2A1 with which one can agree good policies'

$'!

2 usually agree with Swamy Aiyar but disagree with his criticism of 2A1s decision to join politics
(oday Swamy Aiyar has written an Qopen letterQ to Anna' Sway Aiyar is on /(2Ns speakers panel' .e have not yet invited him to our events, since we usually find enough /(2 members to speak at such events' 2 agree almost entirely with what Swamy usually writes Cand perhaps he would therefore agree with what 2 writeD' /or instance, 2 agree with his solution to fast track criminal trials against 6Ps with charges against them' 2Nve recently written about this solution in some more detail' %owever, it appears that he has not found merit in 2A1Ns move into politics' I be! to differ' 2 have been constantly cajoling 2A1 and Anna, =amdev etc' Cthrough whatever limited means 2 can muster, including meeting Arvind 8ejriwalD to join politics' 2 have always disagreed with their insistence Cthrough fasting, etc'D that parliament pass their version of the >okpal 3ill Cand noted that a >okpal can do -O(%2-? to remove corruption, anyway, unless its causes are addressedD' (herefore I ave con!ratulated 9eam Anna on t eir decision to join politics. 9 at is t e ,O+9 democratic and respectful way to c an!e t e country$s laws' As a neOt step 2 have reLuested Arvind to commit to the simple principle of .I=E*9/ >wit accountability@' (he rest can be worked out' .hether a >okpal is necessary or not can then be determined C2 donNt think it is critical in any form or shapeD' 2 would NEDE* criticise good people who join politics' 0ven those who are corrupt do us a favour compared with those who only sit on the sidelines

16

and preach' .e can fiO the problem of corruption, but we can$t fix t e problem of apat y' %e need t e =E+9 people of India to step forward. %e must always encoura!e !ood people w o offer to represent t e country. (%0 PA=>2A60-( 2S (%0 P>A10 .%0=0 (%0 .2S0S( S%O<>D ASS063>0' .et$s !ive a round of applause to 9eam Anna for ta"in! t e *I?'9 (E:I+ION! 9 ree c eers for IA: on its ta"in! t e first step in t e ri! t direction'

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7'

6y position on Arvind

7'#

Arvind is an honest man


On that 2 have no doubt, despite his miOing foreign funding with the 2A1 program'

7'

3ut Arvind has a very strong socialist streak


%e wants decentralisation Cbut in an entirely different way to what is practicable and meaningfulD' 3ut he doesnt want to Luestion the role of government or the enormous number of 4programmes5 it is running' (hats the key issue, as 2 will elaborate'

7'$

Deepak Parekh is wrong to undermine Arvind 8ejriwal and support 1ongress*3AP


Post dated ! -ovember "# 2t is disappointing to read statements from people like Deepak Parekh Cwho should know betterD that 4corruption cannot be eradicated from the system5, but Cin the same breathD that 2ndians should still vote for 1ongress*3AP' So 2ndians should keep committing mass suicide just because it suits the likes of Deepak Parekh who live a cushy live in this rotten system+ -o, thanks' .hat a let down to the mass agitation for reform of 2ndiaNs governance' As if the 2A1 simply did not eOist' As if the aspirations of millions of 2ndians simply donNt matter' (heir job is to vote for the corrupt so people like Deepak Parekh can get to drive their cushy limousines and have dinner in !9star hotels with criminals' ;es, Parekh is right that Arvind 8ejriwal is not approaching the issue the right way' 3ut thats only because he doesnt understand basic economics' -ot because thereNs anything wrong with Arvind himself' As a person Arvind is EA* +G-E*IO* to A>> members of 3AP*1ongress E combined' IHm wit Arvind in t is fi! t a!ainst corruption and a!ainst :on!ressF=I-. 3ut 2 can only go to policy' alf t e way with him unless he changes his approach

2 keep suggesting to him Cthrough this blog E 2 stopped writing to him some time ago, since he doesnNt respondD that he can achieve his goals for 2ndia only through systemic reform of incentives and markets' (hats

18

the kind of advice he needs from you, Parekh, not putting down his brave efforts against the +G-E*B*A+:A.+ that rule 2ndia' Arvind is a brave man' %e is ill9educated in economics and public policy, but otherwise he is just the kind of man 2ndia needs' I would call upon Indians to resist any attempt by fat cats li"e -are" >w o t in" not in! about brea"in! bread wit :*I,INA.+@ to ma"e t em vote =I-F:on!ress in 2<14. India wants and (E+E*DE+ !ood !overnance0 (eepa"0 re!ardless of ow little you care for India. 2 only hope Arvind can be persuaded soon to pay attention to basic economics and join /(2 Cthat he must!D' (hen there can be no stopping 2ndia, for /(2 will be entirely on his side then Cand he on /(2NsD'

7'7

6y position on Arvind 8ejriwal, to clear the air for everyone


0very now and then, people scold me for not praising Arvind 8ejriwal enough, or for trying to challenge some of his ideas and actions' So let me cut and paste from a few recent emails* /acebook posts' 3ut before 2 do that, let me note that till today, 2Nve not come across any financial malfeasance by Arvind 8ejriwal' %e has made some errors Ce'g' miOing foreign funding with political action, which 2Nve critiLued elsewhereD but he is clearly a person of integrity' (hat means e is a !ood man. So 2 have no reasons to -O( interact with Arvind' 2 am happy to talk to good people of all QbrandsQ of ideas' 3ut just like in 3aba =amdevNs case, 2Nd be failing in my duty towards 2ndia and 2ndians if 2 did not point out where Arvind is wrong' 2 eOpect to be told when 2Nm wrong' (here is no greater thing of value than finding an honest opponent' All learning advances through honest difference of opinion' Similarly, 2 eOpect to be able to oppose ?OOD people where 2 think they are wrong' .hen such good people decide to promote the right ideas, then we get the best outcome for society' So now, this is an eOtract from my email to Sreelatha 6enon, part of which was published in Business +tandard' 0?ve personally met Arvind 'e(ri al and tried to sho him this more systematic ay to reform, but he has not been responsive$ 0?ve not given up, and continue to try to reach out to him$ Ho ever, 0?m concerned that hile e need more self!governance, e don?t need government interference in our lives$ 5any of his ideas, such as fixing prices for
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essential commodities, are deeply socialist, and ill take 0ndia further do n the path of ruin$ @e need serious policy thinkers to come for ard, not economics illiterates$ hanakya should be made mandatory reading for anyone interested in public life. I fully support the idea that !rvind has joined politics. 0 think that is the right ay to proceed$ But no, 0?d not be Anor ill F*0 members beB part of 0A#?s political effort unless e see strong policy alignment$ Arvind is currently influenced by the Bhushans, ho are hardcore socialists$ ;et Arvind become curious about good policy, then 0?m happy to spend time to talk to him$ -ote, clearly that 2 left the 2AS and decided to devote my energy to the reform of 2ndiaNs governance not in because 2 care Cor not careD for Arvind, but because 2 am driven by a single goal) the (otal (ransformation of 2ndia' 2n that process, 2 believe that the right way must be followed, and the right system established' 2ndividuals are important, but systems must over9ride them' (o that eOtent, Arvind is 2==0>0MA-(' Only his ideas are relevant' 3ut unfortunately, his ideas are wrong' So hereNs an eOtract from /3) !" Coin Forces ith 0A#D 0A# is trying to unite all political parties ith similar philosophies and principles$$ Arvind only has a political vision of complete decentralisation$ He does not have a economic vision$ Coin forces ith 0A#$$ 0t is bound to be a in! in situation$$ #anjeev #abhlok A, 0?ve tried to contact Arvind$ He is not interested in good policy$ .l$ see my comments in Business +tandard today: http:EE $business!standard$comEindiaEne sEsreelatha!menonke(ri al! clubE6F7GGGE$ F*0 is focused on good policy$ @e have a different approach !" Alright$$ u may have different vie s$ And he is really head strong$ =+an(eev: +o am 0, if you haven?t noticed%> But remember, under the constitution all policy decisions ill be taken by vote$ As a political party u ill have to convince hundreds of voters to vote for u$ 9 ill have to do similar stuff if u are a part of 0A#$$ He has a lot of influence in 0A# co& people across the board respect him a lot$ 9 have to in votes of the educated middle and upper middle class hich is the primary orkforce of 0A#$$ *hese people are not his blind follo ers$ =+an(eev: 0?ve not seen the non! blind ones yet$ Happy to meet them$> 9 have to convince them ith logic and they ill vote for uAprovided u don?t use ords like ?most stupid man on corruption?B$ =+an(eev: He is the most foolish man on the topic of corruption$ Ho can 0 hide that fact?> 9ltimately F*0 as a political party ill have to do the same but on a much much larger scaleD 9 ill take a long long time to create a big platform like 0A#$ even 0A# is not big enough$$ think about itD 9ltimately the decision is yours$ =+an(eev: 0f all 0 anted

2<

as po er, 0?d have (oined #ongress or BC. 4H years ago$ No shortcuts please$ )nly the right path$> *he vision document has been misIuoted a number of times by a number of media houses$$ =+an(eev: 5aybe, but 0?ve seen the original version in Hindi$> Any ays, we have found a number of short comings in it$ and it is being revised$$ =+an(eev$ *hat?s good$ 0 look for ard to a freedom based policy program$> Be a part of 0A# and try and sell your ideas$$ *his is the best audience u can get$$ Forget about Arvind$$ *hink about the vast youth base 0A# hasD 0*, #As, 5edical professionals,1ngineers etc etcD @here else are u going to get educated people in 47s and 87s in such large numbers$$ convice them ith logic$$ 0f u get personal ith a man hom they see orking 47 hours day, u ill get no here$$ 9se logice$$ #hailesh #araf i do think that many people ant to contribute to Arvind only on the condition that he F0:+* becomesEthinks like them andEor agree to their conditionsDthis is non!starter since !rvind has achieved phenomenal success =+an(eev: 0 agree, re: :*0$ 0 commend his ork in that field$> and proven his integrity, intentions, hard ork, etc$ and is extremely busy$ %#anjeev& "eing busy is no e'cuse to be a socialist$ I(m very sorry.> )ne should prove his commitment by contributing to his cause B1F):1 expecting Arvind to pay significant attention$ =+an(eev: 0 don?t ant his attention$ 0 am (ust speaking my mind$ He can take it or leave it$ > !" true +hailesh$$ 0 am sure he meets hundreds of ?advisers? every day, ho do nothing really$ 0, as an average volunteer have met a lot of such people too$ )nce a farmer leader had come to him from haryana and anted Arvind to take up their issues and do a rally in their area$ He said,??0 am not going to do it$ 9 organise a big rally urself, educate the farmers, bring them from the entire state together for a rally and 0 ill definitely attend itJ$ He has become a brand$ *his is tough, but this method proves the sincerity of the person$ *his is ho leaders emerge$ # )ne cannot please everybody all the *imeD0A# is fighting its ) n Battle F*0 ill also do it in due course of time, 0 am sure$ F*0 also ould build up a Huge mass Base (ust as big as 0A#$ *illl then, Arvind has +tarted a @ar ith the 5ost po erful K #orrupt .oliticians of 0ndiaD;ets give him is dueD;ets Admire his Luts and +trength$ And if do not support him lets not critici&e him and pull him do n$ #anjeev #abhlok "ear friends, 0 simply don?t care for Arvind 'e(ri al or +he(ri al$ 0t is .9:1;< about 0ndia?s future$ And if !rvind is unwilling to learn basic economics$ he is simply irrelevant. 0?m not trying to change Arvind$ He better learn basic economics if he ants to bring change to 0ndia$ )is ignorance is rampant and problematic. I will speak the truth for in my mind it is not !rvind that matters but

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India. !nd India is * billion times bigger. +o let F*0 continue its (ob of plain speaking and offering alternatives that @0;; ork$ ;et Arvind and his group of confused people carry on ith their confusion$ +ometimes confusions go on for 3H years, like the Nehruvian socialist confusion$ Arvind is simply follo ing that confusion$ ;et?s not orry about Arvind too much$ Cust that the (ournalist specifically asked me about Arvind$ :onclusion 2Nm not writing this blog, or my books, or working to bring outstanding leaders together on /(2 for the sake of 2A1 or Arvind or =amdev' (his effort is -O( about any one of us' 2t is about EDE*/ 2ndian, and about 2ndiaNs future Cand of the worldD' So letNs focus on the key Luestions, not about Arvind or =amdev' 2 have tried for months to reach out to Arvind' %e is Cfrom what 2 can gatherD avoiding any discussion with me or with /(2' (hatNs a problem, for /(2 is promoting a systematic Cas opposed to ad hocD approach based on liberty' And its leaders are impeccably honest' So why is he not interested in engaging with these good leaders and finding out more about liberty+ 2ndeed, to me the biggest problem is) w y as e not joined .o" +atta1 2Nve said that he should do so) repeatedly' 2 canNt see why he is disrespecting perhaps the greatest leader in 2ndian politics today) AP' 2 have many differences with AP, but 2 see him /A= A3OM0 Arvind in calibre, in understanding of 2ndiaNs problems, in eOperience, and in his understanding about liberty' So what should 2 conclude with all this+ JJ 9 at Arvind is determined to impose India. is +O:IA.I+9 ideas on

%is manifesto ChereNs the %indi PD/D is blatantly socialist' 0ven 3aba =amdev has shown willingness to at least talk to me, and listen to my suggestions regarding 1hanakyaNs Arthashastra' 3ut Arvind seems to have made up is mind to take 2ndia /<=(%0= down the path of socialism' 2Nve met him' 2Nve sent him #! emails' %e personally promised to read my book and write to me' -o response' A number of people close to him have mentioned 3/- to him' 3ut no response' 2 P=O62S0 to oppose A-; socialist in the world, particularly in 2ndia' (ooth and nail' >et that be clear to all his QfollowersQ'

22

2 have not Luit my job Cto escape socialistsD and put in tens of thousands of hours of work only to QkowtowQ to yet anothersocialist' No one can ma"e me respect any socialist. (he Luestion of my supporting socialist 2A1 does not arise' 2 once again invite Arvind to stop his mad rush into socialism' 2f he finds it odd to read my book, let him start with Arthashastra$

7'!

1opy of my email to Arvind 8ejriwal outlining support, but asking for a real alternative
+ent a minute a!o& "ear Arvind 0 haven?t heard back from you after my meeting at your office in February$ 0 assume you are busy, although it surprising that you?ve taken so long to respond Ayou did mention that you read your emailB$ 0 hope you?ll confirm receipt of this email and that you?ve read my book, Breaking Free of Nehru Aattached, for your convenienceB$ 0?m riting to confirm that 0 fully support *eam Anna on its demand for special panel to probe corruption allegations against 55+ and #abinet$ 0 believe, ho ever, that in addition, the onus is on you to sho can offer 0ndia an alternative$ that you

0 hope you have realised the obvious fact that 0ndia elects #ongress not because they love corruption, but because there is no alternative$ BC. is definitely A%B not an alternative$ A most misguided and corrupt organisation, itself$ 0?ve been encouraging those ho ant to reform 0ndia to (oin on a platform that commits to integrity and liberty$ Freedom *eam of 0ndia$ *hat 0+ the alternative$ And it ill truly transform 0ndia$ 0 believe you should focus on (oining such an effort$ 0?m not sure about your orldvie , but 0 trust you?ve met Lurcharan "as$ And talking to +omnath Bharti ill help$ .lease find out more about ho you can A#*9A;;< reform 0ndia and eliminate corruption$ @e can book a time and 0 can call you this eekend$ ;et me kno $ 0 think you need to devote time to understand ho successful economies are created$ 5y best ishes are ith you, but 0 do hope you?ll take the task of reforms more seriously, and not aste time on fights that ill lead 0ndia no here$ *hus, even if you get a panel to probe 55+, do you believe it ill do anything for 0ndia? <ou kno , as ell as 0 do, that it ill not$ +o let?s do something that @0;; ork$ :egards
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+an(eev

7'@

>et the parliament of 2ndia resign' 2t has no authority to serve notice to Arvind 8ejriwal'
(eam Anna should not harangue the parliament' 2t should, instead, contest elections and =OO9 OG9 these ruffians' 2t is pointless to tell a thief that he is a thief' %e simply wonNt change' ;ouNve got to P<-2S% him' 2 disagree with Arvind 8ejriwalNs approach of criticising 6Ps .2(%O<( undertaking any corrective action to fiO the problem' %e should contest elections and offer to D2=01(>; lead 2ndia' 3ut e is %E.. %I9'IN 'I+ *I?'9 to criticise t e parliament.

(he parliament is not a protected organisation' (here is, indeed, NO protected organisation or religion or entity in 2ndia' -othing above the citiFen' 9 e :I9IKEN I+ +ODE*EI?N. All constitutional bodies are subject to criticism0 and are +G=+E*DIEN9 to t e citi)en. 2n this case there is overwhelming evidence that the parliament is nothing but a bunch or rascals and crooks' (here is -O doubt in anyone$s mind about that' (he data speak for themselves' Arvind should do more to fiO the problem, but he is -O( doing anyt in! wrong by speaking his mind' %e has the /<>> >230=(; to say what he likes' And in t is case e as provided EL9EN+IDE evidence of t e parliament$s corruption and criminality. (he idea of issuing privilege notice on Arvind is shameful' I call on t e entire parliament to resi!n and and over t e !overnance of India to t e -resident0 to order fres elections. 2n these fresh elections, 2 hope that Arvind will contest elections' 0lse he would be a mere rabble9rouser, not a leader'

24

!'

(he company Arvind keeps

!'#

COldD 2A1 shows its true colours E =0D' (his is getting really unfortunate for 2ndia'
2t is a sad situation in which Arvind 8ejriwal has allowed his political party to be hijacked by Prashant 3hushan' If Arvind doesn$t as" = us an to s ut up and leave immediately0 I$ll presume t is is ELA:9./ w at Arvind imself stands for. 2n that case 2 condemn this whole political effort being started in the name of Qgood menQ but who are doing 0KA1(>; what has destroyed 2ndia' (heir QgoodnessQ is only going to destroy 2ndia' I will fi! t t ese socialists wit all my mi! t. 9 ey may be today0 but t ere is NO %A/ any socialist party will remain (here are >A.S of economics that canNt be violated' (here is now not in! to distin!uis =I-F:on!ress from IA:. onest onest.

>Old@ IA: s ows its true colours # *E(. 9 is is !ettin! really unfortunate for India. 2t is a sad situation in which Arvind 8ejriwal has allowed his political party to be hijacked by Prashant 3hushan' If Arvind doesn$t as" = us an to s ut up and leave immediately0 I$ll presume t is is ELA:9./ w at Arvind imself stands for. 2n that case 2 condemn this whole political effort being started in the name of Qgood menQ but who are doing 0KA1(>; what has destroyed 2ndia' (heir QgoodnessQ is only going to destroy 2ndia' I will fi! t t ese socialists wit all my mi! t. 9 ey may be today0 but t ere is NO %A/ any socialist party will remain (here are >A.S of economics that canNt be violated' onest onest.

!'

1ompendium of evidence that 2A1 Cnow AAPD is socialist


Socialism is a death trap' 2t has prematurely killed millions of people in 2ndia, it has blighted the lives of millions' Anyone who promotes socialism is an 0-06; of 2ndia'
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=ut& NO9 ON:E 'A+ IA: EDE* ,EN9IONE( 9'E %O*( .I=E*9/. Arvind Kejriwal0 left of centre %e has declared himself left of centre' %is Swaraj says not one word against any eOisting socialist program, merely that the village assembly must have a role' %is Swaraj thus has no regard to liberty' All about local self9governance' %e is keen to fiO prices' At yesterday?s launch party, A' is Iuoted as saying from the dais: .etrol price cylinder$ ill be brought do n to H7 a litre, diesel to 87, lpg to 8H7 a

*his is their key agenda Tinfo throN Supratim, G -ov # on /orumU also) http)**www'Luora'com*Arvind98ejriwal*Should9Arvind98ejriwal9be9 trusted9with9the9fate9of92ndia9to9improve9it9for9the9better*answer*?anesh9 Srinivas -ras ant = us an0 t e central planner %e has called for nationalisation of industry in 2ndia' .ants socialist policy in 2ndia' /o!endra /adav ;ogendra ;adav 94%ow can we not be wedded to the idea of economic eLuality+ .hat is so #B@"s about it+5 Creported by Mishal SinghD Anna 'a)are %e has disallowed the 6aharashstra government from holding legally reLuired elections in his village' %e has imposed his rules Ceg' re) liLuor*meat eatingD on everyone in his village' %e has personally whipped Cwith an army beltD those who have violated his rules' And Anna has stridently opposed /D2' All socialists 2Nm unable to distinguish between 2A1Ns ideology and that of 1ongerss*3AP*A?P*(DP*D68*A2D68*Shiv Sena, etc' 1an anyone please show me how 2A1 and its supporters will bring any change in 2ndia+

!'$

/ully support Arvinds 1itiFens >okpal' >et citiFens pay for this >okpal and let all parties use it'
/(2 has a strong disciplinary process but we did not have the kind of resources Cand vision, perhapsD to propose a private >okpal' I$m deli! ted to for is party. ear t at Arvind as created an Internal .o"pal

26

2Nd like to suggest that he institutionalise this >okpal' 2 dislike the idea of a government funded >okpal' (hat is not independent enough' 3ut 2 like the idea of a 1itiFensN >okpal that is directly funded by citi)ens t rou! private donations0 and the use of the services of which is entirely discretionary and optional' (he fact that the 1itiFensN >okpal makes a determination of innocence should be enough to confirm someoneNs integrity Cand vice versaD' 2f found guilty, the 1itiFensN >okpal would make a formal complaint to the Police' (his >okpal should be converted into a (rust, and rules established around it' (his will form part of the institutional structure of 1itiFensN ?overnment that 2Nve earlier proposed' (his >okpal should offer its services to all political groups*parties Cthat have paid a membership feeD and wish to get complaints against their members verified' 2Nm happy to get involved in drafting the (rust Deed for such a 1itiFensN >okpal' As a first step 2Nd like the allegations against 3aba =amdev to also be investigated Cif he offers himself for such investigationD'

!'7

2 mostly agree with Prashant 3hushan' 3ut he now needs to understand Arthashastra'
=aghvendra, who was present at the 3angalore event CbelowD sent in this link' 2 actually agree with B! per cent of what 3hushan is saying' %is description of crony capitalism prevailing in 2ndia is spot on' So thatNs a good start) that both 2 and he A?=00 that the loot of the country has increased since liberalisation occurred' And that it has been led both by 1ongress and 3AP' 2n BFN 2 eOplained that today is possibly O->; for the corrupt to enter 2ndiaNs political system' (hatNs basic economics' And so 2 offered solutions to allow good people to enter politics' 3ut there was a full chapter devoted to the administration of the country C1hapter !D and also a significant section devoted to how the political system will need to be reformed C1hapter @D' (he point that 3hushan doesnNt understand is that when you O->; allow the corrupt to enter A-D you pay them very poorly, the you can eOpect S<P0=91O==<P(2O-'
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(hatNs where some basic knowledge of economics and public administration would have been good, but he is clearly unaware of these areas of human knowledge' (hatNs not a problem' %e is a good man who wants to improve 2ndia' 2Nm happy to speak even with him C2 was earlier reluctant to do so given his hardcore socialist viewsD to eOplain the A1(<A> process of functioning of capitalism' -ot crony capitalism' 1rony capitalism is O->; possible under socialist regimes' -o, and no nationalisation please' >et me eOplain personally over the phone Cassuming someone gives a copy of the blog post to 6r' 3hushanD'

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;ogendra ;adav is a hardcore socialist, and AAP cant possibly reform with him on board
=ecent developments with AAP are positive' 2Nm informed Csee thisD that QAAPs economic policies r yet to take concrete shapeQ' And a recent meeting with Arvind seemed to indicate he supports minimal government' 3ut we canNt discount either 3hushan or ;ogendra ;adav' .hile they remain on AAP, there is +I,-./ no possibility of this party advocating good policy' 2Nd love to be proven wrong, but 2 donNt think leopards change their spots so easily' Of course, if 3hushan or ;adav are .2>>2-? to be Luestioned, then 2Nm happy to engage with them in a public debate' /o!endra as been particularly nasty to me in an email communication. Entirely unprovo"ed0 but e probably t in"s t at insultin! me doesn$t matter. 3ut perhaps he would insult me anyway, being the %A=D1O=0 socialist and the enemy of liberty' %aving a debate with me is not in his best interest, perhaps+ So why not alienate me+ ;adavNs article) Q(owards an 2ndian Agenda for the 2ndian >eftQ 0conomic and Political .eekly V Mol' :, -o' 7#, Oct' B, #BB$ T1an be read free of cost at AS(O= by registeringU' 2n calling for another way to enter the minds of the people, he notes) J+ocialists must spell out a more plausible picture of the institutional design hich can realise the above mentioned ideals$ @hile one set of socialists have continued to believe innocently in the magic of the all po erful state, nationalisation and central planning, others have fallen back on an alternative set of mythologies: decentralisation, small!scale techniIues, self!sufficiency, and so on$ J+ery few would ,uestion the charms of the socialist dreams , hat people usually suspect is its feasibility or realisability in the given conditions$ +ocialists must convince themselves rigorously on this score before they set out to make converts$ *he follo ing areas need greater

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and more careful attention: the role of the public sector, the extension of nationalisation, the role of market, the policy on international economic relations, the problem of combining decentralisation ith efficiency, the Iuestion of feasibility of self!sufficiency in technology, the nationality Iuestion, the nature of federal political arrangements, the appropriate educational and cultural policy, the future of caste system and the empoo erment of omen$J Not one word AN/%'E*E in is writin!s about liberty ' %e, the QgreatQ man, has all solutions for us, for all our problems' %e can fiO them through QappropriateQ technology, appropriate education, etc' Of course, only %0 knows whatNs appropriate' And if only we followed him and his ideas, we would all magically achieve the Qsocialist dreamQ' /adav$s opposition to *amdev ;ogendra doesnNt even like the relatively less than classical liberal approach of =amdev when he wrote with approval about Arvind 8) J*hey have tried to distance themselves from blatant anti!politics and institution!bashing and from theideological stream represented by -amdev$J =+ource> 2 had a different view about Swami =amdevNs worldview before 2 met and understood his work' 2Nm now comfortable that his swadeshi is not the swadeshi of the early "th century 2ndian politics' 2t is about using the 30S( modern technology to produce the best 2ndian products' And leaving it to consumers to choose' -o imposition involved here' /adav$s advocacy of Kis an -atnai" 2n this article ;ogendra talks about 8ishan Patnaik as his guru' .ho was 8ishan Patnaik+ @ell, JHe ill be remembered for his passionate commitment to value! based politics and for his relentless campaign against the retrogressive policies of economic liberalisation$ He favoured a broad!based coalition of socialists, communists and other democrats against imperialist globalisation and orked hard to retrieve the socialist stream from the morass of political opportunismD 'ishan .atnaik adhered to the Landhian criti,ue of modern civili.ation and the idea of progress$ 5ost of the developments in late capitalism seemed to him a confirmation of his beliefs$J =+ource> /adav$s advocacy of .o ia ;adav has written in glowing terms about >ohia in his article, QOn =emembering >ohiaQ in 0P. on Oct "#"' -o doubt >ohia was a nationalist, but >ohia stood for a particular version of socialism that can

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perhaps by the phrase QSmall is 3eautifulQ' %e combined 6arO and ?andhi in a uniLue way E by opposing technology and opposing progress itself' /adav$s advocacy of +urendra ,o an 2n an article, Steadfast socialist, ;ogendra ;adav writes) J9ntil the end of his life, he as engaged in an attempt to bring together all those socialists ho had stayed true to the values of the movement$ As president of the recently formed +ocialist Canata .arty, he as orking for its foundation conference in 5ay 4722 hen his (ourney came to an end$ He as associated ith the National Alliance for .eople?s 5ovements, the +ocialist Front and the :ashtra +eva "al$J ;ogendra ;adav comes from the romantic stream of socialists who, in their rejection of the study of human nature, rejection of the ideas of Arthashastra, rejection of the ideas which made 2ndia great in the past, have tried to find an QalternativeQ model that />20S 2- (%0 /A10 O/ 3AS21 01O-O621S' (o have him in AAP Calong with P'3hushanD is certain recipe for disaster' 2f AAP is not socialist, with these guys on board, please tell me what these two are doingI (hese two are QAhola .alasQ, who imagine that through their fertile imagination they can somehow overturn the 2=O- laws of economics' Sorry guys, but you canNt 0M0= break a S2-?>0 law of economics'

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Alarming confusion in the mind of ;ogendra ;adav re) 4social justice5


2Nve written a >O( against the fuFFy and confused idea of Qsocial justiceQ which %ayek, too, in his work has dismissed as having no meaningful content' Apparently a social scientist but ignorant entirely of the meaninglessness of this concept, ;ogendra ;adav has written an article entitled Q=ethinking Social AusticeQ Seminar, Sept ""B' (he following eOtract is A>A=62-?I +ocial (ustice reIuires that all social goods A material as ell as non! material goods such as dignityB should be distributed on the basis of the criterion relevant to that good or activity. =+an(eev: Note this is ho these collectivists ork$ *hey facilely pull out a definition from their hat, then expect us to F);;)@ 0* B;0N";<, ithout asking: but hat about liberty? @hat about accountability?%> *his ould mean detaching access to social goods and opportunities from social circumstances =+an(eev: And ho pray ould do that? *he B0L

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+*A*1%> and thus complicate any understanding of MmeritN$ =+an(eev: 5erit is a dangerous ord for socialists since it represents effort and talent$> But social (ustice need not re(ect relevance of ability, effort and choices to life prospects of individuals and groups$ =+an(eev: @ell, that?s .:1#0+1;< @HA* 0* ")1+%> *he demand for eIuality of opportunity must go beyond a formal eIuality in the sense of banning explicit discrimination$ =+an(eev: But hy must private discrimination be banned? 0t is perfectly a personal choice and can?t be imposed upon by the likes of <<$ > 0t must reIuire an end to all forms of indirect discrimination, historically accumulated deprivation and systemic disadvantages$ 0n that sense, (ustification for policies of social (ustice ill have in a large measure to dra on considerations of and provide evidence for disadvantage, deprivation and discrimination$ =+an(eev: And here e go: the usual rigmarole of )B#E+#E+* and the institutionallisation of in(ustice B< *H1 +*A*1$> *here are some aspects, more in the domain of politics than policy, in hich the case for social (ustice can take the form of same treatment to all, plain and simple$ But this ould apply only to those basic goods Aabsence of humiliation, for exampleB here the relevant criterion is eIual humanity$ 0n some respects the claims to proportional representation of social groups Aor redressing gross disproportionality of group representationB are valid, but this is at best a limited argument about diversity and that too about some key positions and institutions$ *he case for adeIuate political representation for dalit!bahu(an has to be linked to the conseIuences of such representation on state policy, economic ell! being and social po er of these communities$ An over!emphasis on the proportionality principle may appear to strengthen the case for social (ustice, especially for the elite ithin the deprived groups, but it does so at the cost of reducing the intuitive appeal and the po er of the idea of social (ustice$ *he second arena of rethinking reIuires recovering lost spaces and claiming ne spaces for social (ustice, especially spaces beyond state and the public sector$ 0t is true that a democratic state provides a sphere here the disadvantaged ma(ority can press for action and that a lot remains to be done there, especially ith regard to sectors such as the (udiciary, institutions of excellence and the army$ Arguably, an improvement in the social composition of higher (udiciary ould go a long ay in strengthening policies of social (ustice$ *he grounds for keeping technical institutions of excellence beyond the purvie of affirmative action in some ays go against the very idea of hy affirmative action is needed in the first place$ Better representation for +#, +* and minorities, especially 5uslims, in the army is an example here the diversity principle needs to be invoked$ 0n all these instances, e must not allo the non!feasibility of reservation to be a good ground for exclusion from affirmative action$
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-ote that this is +9*ON? AjustificationA for all "inds of affirmative action and *E9*I=G9IDE policies' 3AP can happily use this to campaign to destroy A>> 6ughal buildings in 2ndia on the ground that these were unjust' Social justice is a ridiculous idea that can be manipulated to justify A-; kind of injustice' 3eware ;ogendra ;adavNs confused ideas' Arvind listens to him but refuses to engage with me' (hatNs not a good signI

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Arvind thinks he is Hideology9free but he is notI

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Arvind 8erjriwal is a self9proclaimed socialist E thus an enemy of 2ndia, along with other socialists
/or long the ideas of Arvind 8ejriwal appeared to me to be eOtremely diffuse, and 2Nve so commented on this blog on occasion' 2 recently asked to see his theory of state, for 2 couldnNt understand where he comes from in the theoretical sense' 6y initial analysis of his theory showed that he is seriously confused' 2 said) +ocialism is the underlying cause of 0ndia?s misgovernance, but 'e(ri al?s paper doesn?t even sho the :15)*1+* understanding of that$ He imagines that simply by having more local po er things ill become miraculously better$ -O-0 of his ideas, for instance, drill down into the underlyin! causes of corruption' %e is clearly happy with 2ndiaNs socialist policies, just concerned about a few minor fringe issues Chis QsolutionsQ therefore (O(A>>; fail to deliver, e'g' =(2' .hy did =(2 not eliminate corruption, E why did it also need >okpal+ (he same fate will attend the >okpal E which doesnNt address A-; of the causes of corruption' .hy is state funding of elections -O( being promoted by 2A1+D %ell0 Kejriwal +O:IA.I+9& as now cleared t e air and declared imself

/o you have ideological inclinations? ;et me speak about the people in the leadership as 0 cannot speak for all the people ho have participated$ *here cannot be anyone in the leadership ho has a communal background$ 0ur core team consists of 12 people and most of them are left centre. I hope that answers your ,uestion. Need I say more1 Now0 everyt in! fits. -o wonder there has been no response from Arvind 8ejriwal Cor 8iran 3ediD to my personal messages Cdelivered through intermediariesD' (%0S0 P0OP>0 A=0 SO12A>2S(S E -O D2//0=0-( (O (%0 1O-?=0SS A-D 3AP >0AD0=S (%0; 1>A26 (O OPPOS0' .ell, it is good to have his views made so eOplicit Clike Amartya Sen made eOplicit his leftist leanings, once, and is no longer a credible economist in my list of 2ndian economistsD'

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So now the whole of 2nda knows that Arvind and I are on O--O+I9E +I(E+' (hatNs good to know' 2 left the Academy Cin August #BB7D one year before Arvind 8ejriwal joined the civil service C#BB!D' %ad 2 been at the Academy in #BB! 2 would have taught him' At the least 2 hope he was taught by Atindra Sen of the #BG: batch of 2AS Cnow with the 3ombay chambers of commerceD E an economist whom 2 hold in high esteem' 3ut the AcademyNs thrust was, of course, socialist under the leadership of -1 SaOena Cand %arsh 6ander who was a couple of batches senior to me E #B:" vs mine E #B: D' (hat might have prevented good economics education from being imparted to the young officer trainees' A nd so we ave mana!ed to create /E9 ANO9'E* economic illiterate w o is now furt er dama!in! India # dama!e t at was started by Ne ru. 2f Arvind will kindly do me the courtesy of reading "34 Cas his countefactual professor at the AcademyD we can discuss further' 0lse 2Nm going oppose anything he does to destroy 2ndiaNs future' Sorry, 2 canNt tolerate socialists' (hey are (%0 0-0620S O/ 2-D2A' Period' (he failure of economics education in 2ndia is colossal' A disaster' *elated&

1an 2 see Arvind 8ejriwals theory of state Cor of Anna %aFareD, please+ On September #, "## .hy =(2 is -O( the solution to 2ndias problems On August G, "#" Arvind 8ejriwals theory of the state J# On September $, "##

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(otal confusion in the mind of Arvind 8ejriwal' Plus Cof courseD arrogance' %ence write off AAP'
Someone asked Arvind re) his views on economics' (his is what he replied' 6y comments follow' AK$s response 2 am often asked E4Are you a leftist, socialist or a capitalist+5 TSanjeev) thatNs a stupid Luestion' (here is -O difference between leftist and socialistU /riends, we are not wedded to any ideolo!y. .e are common people' .e have our problems' .e want solutions' If we find solution to any problem in t e .eft0 we are appy to borrow it from t ere. TSanjeev) (here is -O viable solution in socialist ideas'U 2f we find solution in 1apitalism, we are happy to take it from there' TSanjeev) Sorry, you donNt even KNO% t e basics of capitalism0 what can you possibly

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take++U 3ut we firmly believe that government has no business to be in business' TSanjeev) %ow can one believe him, a person who has consistently demanded price regulation and public sector management of the key aspects of the economy+U ?overnment should leave business to the citiFens of this country' 2 personally belong to a business family' Other than my father, most of the other members of my family are in business' 2 am aware of the kind of problems faced by a businessman' (here are two types of businessmen' (he first category consists of those businessmen who openly subvert and milk the system to their advantage' /or instance those businessmen who buy spectrum for =s #!"" crores today and sell it at =s @""" crores a week later, we dont call it business' (his is open loot' (he second category consists of those businessmen who constantly struggle against the system and are successful despite all obstacles created by the system' .hereas the former category of businessmen would like to maintain status Luo, the latter category wants 2ndia to become corruption9free' (he first category of businessmen are less than #W' 6ajority of the businessmen in our country want to do business honestly' A businessman creates wealth and provides employment' Out of his profits, he pays taOes, runs his family and does charity' %e ought to be honored for that' %owever, the system treats him as a thief and a dacoit' /or instance, in Dellhi, the whole system of MA( has deliberately been kept compleO' 2t is eOtremely difficult to comply with it' So traders are forced to pay bribes' AAP would simplify these systems' Aam Aadmi Party CAAPD would create a business environment where people can do business honestly' AAP would remove all legal and administrative obstacles that eOist today in doing honest business' =ather than act as an obstacle, AAP would create an environment that encourages and facilitates business' .hy does it happen that a person faces so much problem when he tries to start a business in 2ndia but he does so well when he goes to the <S+ 2ndians abroad are doing so well' Actually, 2ndians are first class people who are victims of third class governance in our own country' AAP would like to change all this' After having implemented an honest system, those who subvert the system would be strictly dealt with' 2f you have any ideas, feel free to write to me'

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.ith best regards, Arvind 8ejriwal ,/ :O,,EN9 (his is typical of Arvind' (O(A> 1O-/<S2O-' %e thinks he can be ideology9 neutral and get the NbestN from whichever idea works best' %e, a person with no idea of how wealth is created in society, is going to determine whether to apply socialist or QcapitalistQ solutions' 2ndia has a strong tendency to pick the losin! side of economic policy, largely because inability of its leaders to think from first principles' -ehru also thought a QmiOedQ economy was a good idea' %e was terribly wrong in every way' (he same disease continues with Arvind' 'e doesn$t t in" from first principles. 'e as no t eory of state. (here is another more fundamental reason why Arvind and ;; per cent of II9ians simply :AN$9 understand economics. -othing wrong with their 2R' (he thing thatNs missing is their ability to think D2//0=0-(>;' 2 met an 22(ian today for lunch Cthere are a lot of 22(ians in 6elbourne and every now and then 2 meet one or the other, or someone joins me during my lunch walkD' And this is precisely what 2 told him E that 2Nve met SO 6A-; successful 22(ians by now but virtually none Cor maybe Dipinder Sekhon and perhaps 88 Merma of /(2D who can understand economics' (wo things prevent them from doing this' One, of course, is arrogance' 6ost 22(ians tend to be very arrogant' (here is perhaps none more arrogant than Arvind E 2Nve already posted Cupon pressure from commentatorsD his hugely arrogant response to me about a year ago' /ew 22(ians will listen to others with a view to understanding them' 3ut the second reason is even more important' (he training of scientists and engineers fundamentally changes their mind and reduces t eir ability to t in" in t e manner an economist t in"s. Scientists*engineers are used to directly controlling the physical world whose movements they can predict based on the sum total of forces at work' 2n the case of economics, there are very few Calmost noD direct forces' 6ost are indirect forces which engineers canNt see' (hese human forces are also far more compleO and strategic than any physical force' 0ngineers are like fish out of water when it comes to economics' 3oth %ayek and Aulian Simon pointed out why most scientists and engineers canNt understand economics' (hey also make linear

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eOtrapolations, whereas there is constant strate!ic actionFreaction and selfBadjustment in economics. (hatNs why Arvind 8ejriwal is comprehensively confused' And since he is arrogant as well, he has refused to either read my book or discuss issues with a view to understanding them' %e therefore 1O-(2-<0S (O 30 A- 01O-O621S 2>>2(0=A(0' Not in! muc can be done for AA-. It must be written off. 2 would strongly urge people to -O( vote for AAP' Stick with AP of >ok Satta' Although he is not an economist but a CmedicalD doctor, he has put in effort to learn about the human mind Chence economicsD' (here is also some hope with 6odi who seems to be somewhat open to economics E but 2 canNt really say till 2 see 6odiNs policies' 3ut forget Arvind' %e is a confused socialist CthatNs what he really isD P><S arrogant' (wo things which are dangerous for 2ndia'

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Arvind 8ejriwal will be a disaster for 2ndia) doesnt know what he doesnt know
0Otracts from my emails to someone who asked me to work with AAP since 2 am apparently doing the Qsame thingQ as AAP) EI*+9 ,AI. .e are definitely not doing the Qsame thingQ' AAP is radically leftist E even communist' .e, on the other hand, firmly believe in liberty Cpersonal, social, economicD' Please read the S81 vision*agenda for change and youNll Luickly realise why AAP is going to get 2ndia further into a mess' http)**sonekichidiya'in* 2n fact, 2Nd like to invite your attention to the summary of issues mentioned here) http)**sabhlokcity'com* "#$*"7*im9not9satisfied9with9us9being9the9#""th9 in9the9world9gujarat9is9not9my9benchmark*' .e need a genuine reforms movement, not more of the same socialist recipes that have destroyed 2ndia' +E:ON( ,AI. TLentleman as not yet persuaded ! probably didn?t read any of the links 0 sent, so a further email as necessary U =e) ArvindNs goals for 2ndia E these are entirely contrary to what 2ndia needs if it has to succeed as a great nation'

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.e need to understand Arthashatra Cre) economic policy*governanceD, but Arvind speaks in a language that is the 0KA1( opposite of 1hankyaNs' 2 would reLuest you to read my book Breaking Free of Nehru CattachedD to realise that the model Arvind is trying to impose is eOactly the model that -ehru imposed' Such a model is dangerous, harmful and has proven itself repeatedly to be a disaster throughout the world' 2 therefore cannot work with or support Arvind or his AAP' %e is also eOtremely arrogant as a person and refuses to debate*learn' 2 have met him and have had a very sad email response from him in return' (he thinking he displays is simply not what we need for 2ndia' .e should distinguish good from the bad' Arvind may be a good man but his approach to learning is very poor Cbasically he refuses to learnD, and his ideas are eOtremely dangerous' >etNs do the right thing the right way' 2 would also reLuest you to go through the slides 2 presented at the 2ndian 2nstitute of Public Administration Delhi earlier this month Chttp)**sabhlokcity'com* "#$*"7*short9update9on9governance9reforms9 conference9#$9#79april*D' (hese slides illustrate in brief the key reforms 2ndia needs' 2Nve been working on governance reforms for 2ndia since /ebruary #BB: when 2 decided to leave the 2AS C2 left a couple of years laterD' 6ore than #! years' C3efore this 2 also did a doctorate in economics from <SAD' And 2Nve been working in Australia Cstate of Mictoria E in what is perhaps the best administered government in the worldD on economic and regulatory policy issues' 2 suggest I may ave somet in! to say w ic Arvind doesn$t even compre end. 'e doesn$t "now w at e doesn$t "now. 2ndia has been led by the blind for so long that when one more blind man rises, they follow like a herd' (hatNs not a good strategy for 2ndia' As 0instein said) doing the same thing over and over again and eOpecting different results' >etNs avoid the insanity of doing the same thing we have done for @! years under -ehruNs tutelage' .e must learn about good policy' (hat is why 2Nve also created a simple policy framework for 2ndia to consider CattachedD' And recently completed a policy competition the first priFe winning entry of which is attached below'

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1onclusive evidence that Arvind is socialist

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1an 2 see Arvind 8ejriwals theory of state Cor of Anna %aFareD, please+
=anganath =, a talented writer, has been trying to show me that the public donNt really care about who is leading this movement against corruption, so long as they get some relief' (hey are therefore Luite happy with tokenism about ?andhi and the whole lot, without bothering about the underlying principles' 3ut let me re9phrase the key points 2Nm making, so people understand that 2Nm -O( bothered about analysing the movement from sociological or other perspectives, nor am 2 bothered about the reason why people are happy to think of A% as a kind of ?andhi' 2nstead, 2Nm into analysing issues from first principles, and seeing how these actions fit my theory of society' As you might be aware by now, 2Nm writing a book, ")F in which 2 analyse human nature, our evolutionary history, and propose a t eory of state, which turns out to be very close to the standard Qclassical liberalQ model' 3ut of course there is no universally accepted Qclassical liberalQ model Cfor 2 differ in part from >ocke, Smith, even %ayek E and each of these differs with others in certain details, as wellD, my theory is best seen as a version of classical liberalism, and so 2 say that 2Nm a classical liberal within the broad meaning of that word' (hat my theory is -O( collectivist Cor a branch, such as socialist, communist, fascist, /abian socialist, 8eynesian, or social democraticD and -O( feudal Cor a branch, such as oligarchic or aristocratic, or monarchicD, means it is classical liberal' 2 wonNt go into details of my theory of state here, since the book Cif finished, and if publishedD would run into around !"" printed pages, but 2Nve looked at the current street democracy promoted by 2A1 Cwhich is fine in principleD with the lens ofmy t eory' 2Nm -O( bothered about how popular or populist it is, but about the validity of its theory of state' Incentives (he fact that 2A1 doesnt have any foundational, consistent theory of society, nor any understanding of economics and incentives, has meant that this populist movement has consistently stayed on the surface of things and hasnNt addressed underlying incentives and causes'

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.hy is punishment Cincluding in the case of A%, physically beating poor, illiterate peopleD more important than incentivising people, motivating people+ (hat is because 2A1Ns theory Cand =amdevNs, tooD assumes that some people are 3O=- good, and some are 3O=- bad' (hey are the 3O=good, and the politicians Cand QdrunkardsQD are 3O=- bad' Such a theory is not articulated clearly but its implication is that it directly opposes the concept of democratic republic, and leads us to monarchy or some other form of dictatorship, where the QaristocratsQ, the Q?andhians in white topisQ, or Qthose elevated by -obel or 6agsaysay committeesQ are fit to rule, and the others are fit to S0=M0 them' 0ffectively this is the model of the Aan >okpal 3ill' According to this theory, the QgoodQ people will run the country, and the others will S0=M0 them' Such a theory has -O P>A10 for normal democratic process or debate in parliament' 2t sees the parliament as a S0=MA-( O/ (%0S0 ?OOD P0OP>0' As youNll know 2 stron!ly disa!ree with such a theory of state' (o me this is anti9democratic, anti9liberty and hence very Luestionable' According to me A>> P0OP>0 Cincluding meD have the potential to be both good and evil' .hat is actually eOpressed is a function of incentives' 2n my house my son was allowed to consume alcohol the day he became #: years old' <nder the close watch and guidance of his family and friends, he has not become a drunkard, nor will he become one' 2nstead, he has become a theoretician of the state, and is keen to pursue higher studies in the theory of politics' 2Nm not saying 2 didnNt use corporal punishment when he was young Csomething 2 deeply regret doingD, but by providin! im wit IN:EN9IDE+ to be !ood0 e as turned out to be !ood) an ideal citiFen' %e even contested Senate elections in Australia at the age of #: Csee the election results on AustralianNs national (M agency hereD' %e understands the idea of 12(2P0-S%2P' ,y job as a parent is to produce >at ome@ *E+-ON+I=.E citi)ens of my c ildren. .et me assure you # we don$t produce responsible citi)ens by =EA9IN? >as 'a)are wants@ or 'AN?IN? t em >as *amdev wants@0 but byteac in! t em0 by educatin! t em0 by motivatin! t em. %aving produced one citiFen Cmy son E of whom 2Nm very proudD, my neOt job is to produce a 32>>2O- citiFens E in 2ndia' 2n doing so 2 donNt propose to beat you, 2 donNt propose to hang you' 2 propose to motivate you' 2 will change your incentives, so that you will automatically be motivated to do your 30S(' Eastin! unto deat

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2n DO/ one of the things 2 discuss is the QrightQ to kill oneself, including through fasts9to9death, religious fasting, etc' (o me the (%0O=; behind such things is crucial' 2 need to know .%; someone believes that fasting unto death is valid' 2m not really bothered about what the people think about it' As you might know 2ve changed my mind on fasting unto death E and my original position in CdraftD DO/ is now far more nuanced' 3asically the only eOception 2 still make is for someone to use it to directly SAM0 lives' 1ertain fasts unto death are S(2>> valid E even in democracy, e'g' to save lives in a communal riot E although my preference is for Luick stern action by government to shoot the rioters below their knees and stop such madness immediately' 2n other words, 2Nm -O( a ?andhian, but 2 can understand why someone fasting to death to save lives could be doing the right thing' 2Nm -O( interested in any defence of ?andhi or %aFare nor in any direct comparison' 2m into the (%0O=; of fasting to death' 2Nm interested in finding out .%21% conditions allow someone to use a fast unto death in a /<-1(2O-2-? democracy Ceven though it is in many ways in shamblesD' And so my comments havenNt been made about %aFare per se but about the concepts he uses' (he fact that he P=0(0-DS to be a ?andhian by always putting a picture of ?andhi behind himself, which implies he has read and understood ?andhi and is therefore a learned ?andhian and therefore presumably has a theory behind his fasts, is when 2 compare him with ?andhi' 2 compare his actions with ?andhiNs O->; because of the %<?0 pretense CfalsehoodD of his being a ?andhian' %ad he put forward his O.- theory of state and theory of liberty Clike 2 doD, without taking recourse to the crutches of ?andhi, 2 would not have had to bother with reading ?andhi to 4disprove5 his methods' 2 would have directly taken him on E based on his own writings' =ut e as no writin!s t at IHm aware of0 no publis ed t eory' All 2 know is that he is a village level AurangFeb, a petty dictator' 2n summary, 2Nm forced to form my views about the underlying theory of state of 2A1 and A% based on their actions' (hat, as you can well imagine, is very hard' 2Nd prefer, instead, to read Arvind 8ejriwalsN theory of state, or AnnaNs theory' (hese theories will presumably show me why P<-2S%60-( is such an important thing in life, it will show me why human motivations should be ignored, it will show me why establishing a body that basically sits O(OP of the parliament and is operated by QgoodQ people is valid, and it will show me why fasting unto death to effectively blackmail an 0>01(0D parliament is valid'

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2t is that theory that 2 seek' :ould anyone please point me in t e ri! t direction # to t e t eoretical writin!s of Arvind Kejriwal0 Kiran =edi0 or Anna 'a)are1

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Arvind 8ejriwals theory of the state J#


/ollowing on from my blog post here, 2 found a few minutes to go through this document C1omprehensive -ote on SwarajD available at 8ejriwalNs website) http)**www'lokrajandolan'org*download'html Assuming this is 8ejriwalsN theory Calthough not a comprehensive theory of stateD let me note at the outset that its broad thrust E of greater local government and more direct representation E is almost entirely consistent with what 2Nve been writing about Cin terms of local government reformsD' (he classical liberal model is stron!ly compatible with subsidiarity' %owever, 8ejriwal goes overboard and makes too many wild assertions' (hus, he says) Qwe inherited from the 3ritish too many of governmental systems that were w olly unsuited to our values and needsQ' (hese are fighting words E and might even represent some misguided %indutva conservatism' 3ut remember, our 1onstitution was written 0-(2=0>; 3; 2-D2A-S' 9o su!!est t at India$s constituent assembly was a bunc of fools w o were merely copyin! institutions t at t e =ritis ad created0 and merely created a system incompatible wit Aour values and needsA >w atever t ese are@0 is a serious error of fact. 2ndeed, 8ejriwal will be well advised to study the history of democracy and note that 0nglish democracy itself Cwhich allowed universal suffrage only by #B :D, was evolving even as 2ndiaNs democracy was designed a few decades later' (o suggest that we have merely copied <8Ns institutions or those it established in 2ndia is absurd' Ambedkar was eminently educated in law and economics, and was a great scholar' %e brought the best of the 0nglish and American models to 2ndia' (rue, our current constitution is a hodge podge but it did represent state of knowledge of #B!"' -o better constitution eOisted then' (he underlying model that is followed in 2ndiaNs constitution C.estminster systemD works pretty well in 0ngland and Australia even today, for instance' .hat 8ejriwal forgets to note Cand which 2 discussed in BFND is that 0ngland has moved on in many ways Cand others like Australia and -ew Pealand tooD to more incentive9compatible models of governance' 0ven the 1ornwallis reforms in 2ndia were diluted by socialists' 8ejriwal doesnNt seem to display a strong understanding of modern reforms in governance

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E nor the necessary change in incentives needed in 2ndia' 2Nd urge him to read 3/- Cand the online notesD' /inally, 8ejriwalNs handbill says) Q2n last @" years, we have tried every political party and every politician' 3ut things have gone from bad to worse' 6erely changing parties and politicians wonNt help'Q (hatNs a S0=2O<S 62S=0P=0S0-(A(2O-' 2ndia D2D NO9 (=; QeveryQ political party' 2t did NO9 try any classical liberal political party E O->; socialist parties' .hat can possibly be eOpected from socialist parties eOcept Qscheme rajQ Cthe multiplicity of schemes to Qremove povertyQD and total misgovernance+ Socialism is the underlying cause of 2ndiaNs misgovernance, but 8ejriwalNs paper doesnNt even show the =06O(0S( understanding of that' %e imagines that simply by having more local power things will become miraculously better' Once again 2 invite 8ejriwal to read 3/- and to consider revising his ideas to understand the causes of 2ndiaNs misgovernance' (here is -O(%2-? intrinsically wrong with 2ndiaNs model' 2t just needs to be modernised and made incentive9compatible' And we need to discard socialism in every form and shape' (hese QschemesQ that 8ejriwal talks of, must go'

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1onclusive evidence that Arvind 8ejriwal is a hard core socialist


A lot of Arvind 8ejriwal supporters like to delude themselves that Arvind is an open9minded thinker' %e is notI %e is a hard core socialist' -ot only are his ideas clearly socialist, he is surrounded by communists like Prashant 3hushan Chis main funding sourceD and ;ogendra ;adav, for whom total economic eLuality is the only driving force, and for whom big government is the only way to achieve their goals' -ationalisation, increasing the number of social welfare programs, and fiOing prices is A>> they talk about' .hatNs this known as+ Socialism' 2 reLuest those who believe Arvind is -O( a socialist to please go through these bog posts that 2Nve put out over the past #: months or so' .e can then discuss further, if you still think A8 is an advocate of liberty' .hy delude yourself+

>oknayak Aayaprakash -arayan would have (O(A>>; opposed Arvind 8ejriwalNs version of socialism /urther perspectives on Arvind 8ejriwal, and reLuest for more info'

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>oknayak Aayaprakash -arayan would have (O(A>>; opposed Arvind 8ejriwals version of Swaraj >oknayak Aayaprakash -arayan would have (O(A>>; opposed Arvind 8ejriwalNs version of socialism 8ejriwalNs socialist broom will drive out the best talent from 2ndia 6y second comment on Arvind 8ejriwalNs Swaraj 0conomics lesson J# for Arvind 8ejriwal E an economics illiterate 0conomics lesson J for Arvind 8ejriwal E an economics illiterate 6y position on Arvind 8ejriwal, to clear the air for everyone 2ndiaNs 6OS( /OO>2S% man on the topic of corruption) Arvind 8ejriwal Anna, Arvind 8ejriwalNs book, Swaraj, although interesting, is -O( the solution to 2ndiaNs problemsI Some thoughts on Arvind 8ejriwalNs model of governance Dear Arvind, the only path to corruption9free 2ndia is through policies of liberty Arvind 8erjriwal is a self9proclaimed socialist E thus an enemy of 2ndia, along with other socialists Arvind 8ejriwalNs theory of the state J# 1an 2 see Arvind 8ejriwalNs theory of state Cor of Anna %aFareD, please+ Arvind 8ejriwal, you say that you are willing to listen to better ways to fight corruption+ (hen here they are

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1onclusive evidence that Arvind 8ejriwal is a hard core socialist J


6y first post on this topic, being a compilation of evidence accumulated over well over a year, was prompted by the following (witter conversation) 2t is clear that Surajit Dasgupta, who has some broad sense of economics, is badly deluded about ArvindNs worldview, which is P<=0>; leftist' 0veryone has a view, and it is impossible to be into politics wit out a view about t e relations ip between citi)ens and t e state ' 9 at view0 in t e case of Arvind0 is socialist. >etNs review what Surajit has written in defence of ArvindNs ideology) (he thousands of largely urbane youth that poured into the streets following the call by Anna in April and August "## are not interested in re!ressive socialism of Indira ?and iHs vinta!e' /urther, if after

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raising a hue and cry over governments corruption all powers are returned to that very government, it would be a betrayal of peoples trust' So t e yout li"e me came in to ma"e t e movement stay on course. And we found to our sheer joy that the alternative system being proposed by the members of the -ational 0Oecutive of the AAP was indeed not hackneyed' 2ts unfair to look at them as socialists Cin the sense that this term typically conveys, notwithstanding the fact that all political parties registered with the 0lection 1ommission of 2ndia have to pledge on paper that they would be socialistD' (he whole AAP team now X with social justice champion ;ogendra ;adav and free market advocates like 6ayank ?andhi, Prithvi =eddy, me and many of the thinking minds that attend the partys policy meetings alike X is pushing for a new era where civic amenities would be mana!ed by !ram sab as Cin villagesD and mohalla sabhas Cin citiesDS thrust would be on conservation of natureS natural resources would need community clearances to be eOploitedS ealt and education would be state prioritiesS competition would be allowed w erever competition is possibleS secularism would be observed in the strictest sense, moving away from turn9by9turn communalism practised by the 1ongress*SP and the 3APS foreign policy will be determined by reciprocity, etc' 2 hope this is the course the ?andhian 8ejriwal stays' And for information of all and sundry, once and for all, ?andhism is not C2ndianD socialism' T+an(eev: 0 trust you are a are that Landhi as in many ays a classical liberal, even anarcho liberal$ He totally opposed socialism$ U' 2ts a distinct school of thought' Aayaprakash -arayan, =am 6anohar >ohia et al and their followers thought otherwise because they were suffering from a hangover of 6arOism which they grew up on during their formative years' (he model 2 have just eOplained finds no place in Das 8apital' 2f the AAP assumes power and then imposes on the country a Pranab 6ukherjee9 style economic thought, massive disappointment and desertions will follow' As an insider, 2ll try not to let that happen' 2Nll use this information, plus information 2Nve already discussed in the past, to bring together a 1O-1><S2M0 proof of Arvind being socialist' After t is post0 let no one ever come to me sayin! t at Arvind is not socialist, or that he is somehow intellectually QaseOualQ E neither this nor that' Somewhere in between' 0M0=;O-0 in the world is either socialist CcollectivistD or capitalist Cfocused on the individualD' -o one is dead in the centre Ttotally QneutralQU' ?.O++IN? ODE* 9'E EGN(A,EN9A. :AG+E OE IN(IA$+ :O**G-9ION Socialism is the underlying cause of 2ndiaNs misgovernance, but neit er Kejriwal nor AA- oppose !overnment control over our life ' 2t is

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imagined in their model that simply by having more local power things will become miraculously better' (here is no mention of defence of our liberty as the O->; reason for the eOistence of government' 2t is often, under A8Ns model, possible for liberty to be crushed just because a local collectivist body CQgram sabha is not >0SS of a state than a QbigQ governmentD decides to do so' AK$s model is not :ON+9I9G9IONA../ :ON+:*I=E(' 2t is based on (O(A> faith in the collective, and total disregard for the individual and his*her liberty' IAN.OK-A.0 /E9 ANO9'E* ?ODE*N,EN9 =O(/0 I+ =A+E( ON +O:IA.I+9 A++G,-9ION+ A small Aan >okpal may be relevant at a certain stage in 2ndiaNs development, but by missing the 1A<S0 of corruption E socialism and the discretion embedded within government E Arvind merely wants ;0( A-O(%0= large government entity' 2t is not by stopping the #""s of unnecessary things 2ndiaNs governments do, but by creating yet another E almost eOtra9constitutional 60?A9body with thousands of bureaucrats E that Arvind wants to solve 2ndiaNs problems' (hat is a purely socialist approach' %ad there been a (2-; Aanlokpal along with fundamental electoral reforms* compensation reforms Cincluding contractual appointments of senior officials and scrapping the colonial 2AS, etc'D, 2 could have accepted it, but it is not a minimalist approach' 2t is a 6AK26A>2S( approach that will do -O(%2-? to reduce corruption' ?.O++IN? ODE* /O?EN(*A /A(AD$+ ,A++IDE O=+E++ION %I9' :O,,GNI+, >9O9A. E:ONO,I: EMGA.I9/@ (he presence of mega socialist ;ogendra ;adav is being brushed under the carpet' %e is being portrayed as an innocuous Qsocial justice championQ' And what does this QchampionQ Csuch a positive wordID want+ 01O-O621 0R<A>2(;' 4%ow can we not be wedded to the idea of economic eLuality+ .hat is so #B@"s about it+5 0conomic eLuality, not eLual opportunity' 9 at is pure (as Kapital. 9 at also !ives away t e underlyin! t eory of AA-. 0arlier, 2 had vigorously opposed this idea of economic eLuality that is embedded in the D-A of AAP, thus) .hy stay in a country that doesnNt value you+ E in a country w ere you are expected to be an Aeconomic eCualA of t ose wit out talent or capacity for ard wor"1

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.hy stay in a country that 2-S<>(S your talent and hard work+ 2 am -O O-0NS 0R<A>' 2 am uniLue' So are you' So is everyone' C3y the way'D TSourceU (he neOt thing ;ogendra says is) Qthe party does not believe that in critical areas like health and education E the state should withdraw its support at all'Q /rom the previous conversation of ;ogendra, it is clear he wants P<3>21 S01(O= services in these areas' So the government will run schools and hospitals in ArvindNs world' (hatNs pretty much what happens now in socialist 2ndia, and has happened for @! years' 2t is a total recipe for disaster E regardless of teacher appointments by the QcommunityQ' 2nstead, we need a system to deliver eLual opportunity' .e should get the government out of =<--2-? any of these institutions but ensure that the poorest are able to access high Luality education' ?.O++IN? ODE* -*A+'AN9 ='G+'AN$+ -A++ION A=OG9 NA9IONA.I+A9ION Over the past few months, evidence about the ardcore socialist ideas of AAP has been emerging from various key members of ArvindNs team' Prashant 3hushan is perhaps the most critical member of A8Ns team' And this is what he had to say)

their political party would adopt a 4socialistBtype5 T+an(eev: a polite and misleading ord$ *here is nothing like Jsocialist!typeJ$ 0t is +)#0A;0+*$ .1:0)"$U economic policy, but would not be totally against private sector participation' T0$e$ it ould be 5)+*;< against private sector JparticipationJ$ Note this paternalistic ord: these Lods, these Lovernment 5inisters called .rashant Bhushan ould very JkindlyJ JletJ ordinary citi&ens JparticipateJ in 0ndia?s economic life$ Not that it is our "I-5)-IG)5 to engage in any occupation or trade of our choice and the government as +1:OAN* must not even dream of dictating to the master: instead the 5aster, the Lovernment, comprising AA.?s 5inisters, ill JkindlyJ condescend to let us, the citi&ens of JF:11J 0ndia, JparticipateJ in our o n country%%% U their party wanted to give priority to t e public sector T+an(eev: +ura(it ! are you able to read this? #an you distinguish this from hat Nehru or 0ndira Landhi stood for?U, but would not be averse to private sector participation in certain areas in which there would be competition Airports and power would be nationalised T +o JsmartJ 0A+ officers ould run the airports???? 0s running airports a core function of governments? A government can?t provide (ustice and security but ants to run airports%% U
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people in villages got all facilities and that they did not migrate to urban areas T+o here is one more form of social engineering$ #hina did that too: it orked out ays to prevent natural urbanisation$ 0nstead of letting people #H))+1 here they ant to live and ork, e?ll have 5r$ +marty .ants .rashant Bhushan ho ill JgiveJ ! from here ! his o n pocket? ! JA;;J facilities to everyone in 0ndia in villages$ +o 0?m presuming there ill be government managed universities in each village, planetariums, museums, etc$ etc$? U

(his fool 3hushan wants 6O=0 nationalisation even as >oknayak Aayaprakash -arayan, towards the end of his life, OPPOS0D all nationalisation, 2-1><D2-? O/ =A2>.A;S' .hen a government should not even own the railways, .%; should it own the airports+ Some industries, banks, life insurance have been nationaliFed' =ailways were nationaliFed long ago' -ew large public9sector industries have been established' 3ut all t is adds up to state capitalism and inefficiency0 waste and corruption' State capitalism means more power to the State, mainly the state bureaucracy TSourceU KEI*I%A. KNO%+ 9'A9 'I+ 9EA, I+ ,AIN./ +O:IA.I+9 (o you ave ideolo!ical inclinations1

>et me speak about the people in the leadership as 2 cannot speak for all the people who have participated' (here cannot be anyone in the leadership who has a communal background' Our core team consists of 25 people and most of t em are left centre. I ope t at answers your Cuestion. T+an(eev: Although this as said of *eam Anna, this is as true of AA. as it as for *eam Anna$ 0ndeed, many non!socialist elements of *eam Anna did N)* (oin AA.$U A*DIN($+ +9*ON? AN9IB9*A(E -O+I9ION (his is my note about his book, Swaraj) Q2 notice that Arvind made some very strong Cand significantly ill9informedD comments re) the role of foreigners in 2ndia, in particular against trade'Q A*DIN($+ NONB,A*KE9 :ON9*O. OE -*I:E+ On @ -ovember "# at his party launch, Arvind said) Q2f this taO is levied Cfrom the corporationsD, then it will be possible to sell petrol at =s !" per litre and diesel at =s 7" per litreQ' 1learly when Surajit tells me that competition will be allowed where it is possible, AAP doesnNt think that selling petrol is one area where competition should be allowed' (he Q2AS 3rahminQ Clike 2 wasD is somehow best placed to fiO the price' .hy does 2ndiaNs government have to set petrol or >P? prices+

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6ore problematically, QPeople will decide the price of essential commoditiesA' .hy+ And how can QpeopleQ fiO prices+ 2s it not the purpose of markets CA>> people, through their buying and selling decisionsD to QfiOQ prices based on supply and demand+ Does QpeopleQ mean the producer or consumer+ 2f wheat is an essential commodity, then a farmer will want a %2?% price, the consumer a low price' So who will decide+ And how+ 2s AAP Qthe peopleQ+ +G,,A*/ >et me partially rephrase what 2 wrote some time ago (%0S0 P0OP>0 A=0 SO12A>2S(S E -O D2//0=0-( (O (%0 1O-?=0SS A-D 3AP >0AD0=S (%0; 1>A26 (O OPPOS0' 2f Arvind will kindly do me the courtesy of reading "34 we can discuss further' 0lse E if he continues down his socialist path E 2Nm going oppose his attempts to destroy 2ndiaNs future' +orry0 I can$t tolerate socialists. 9 ey are 9'E ENE,IE+ OE IN(IA. I$m sworn to destroy socialism. Eor t e 'G,ON?OG+ (A,A?E it as done to my country.

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Arvind, glad you want freedom in 2ndia' 2 trust you understand its meaning'
Arvind 8ejriwal, who has studiously avoided any interaction with me, studiously refused to read 3/- Cdespite his promiseD, and studiously given mega9socialists like Prashant 3hushan full leeway to date, has now, for the first time in his life, uttered the word QfreedomQ' (hatNs a good start' 2Nm assuming he understands what freedom means' 2Nm happy to eOplain it to him' %e may, if he wishes, read the first four chapters of *he "iscovery of Freedom Cdraft manuscriptD' As of now, 2Nm 1O-M2-10D that Arvind has no clue about what freedom means' A>> his actions to date have been premised on the understanding that he knows best for us, and that the country should nationalise everything in sight, and fiO prices, thus destroying the price system' Aust the other day he threatened the government to increase its gas subsidies' Arvind doesnNt understand the 3AS21 meaning of liberty' %e doesnNt understand that subsidies involve S(0A>2-? money from person A to give to person 3, thus destroying the liberty of person 3'
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2 do hope he will display basic understanding of this %<?0 word in the coming weeks'

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.hy HSwaraj Cdirect democracyD is socialist

(ownload my annotated version of A8s book Swaraj'

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Anna, Arvind 8ejriwals book, Swaraj, although interesting, is -O( the solution to 2ndias problemsI
A few hours ago, in a speech, Anna %aFare promoted 8ejriwalNs book, + ara(, thus) Anna Ha&are says that after reading Arvind 'e(ri al?s book ?+ ara(?, one ould realise that it is the government that has lost its focus and not the anti!corruption movement$ =+ource> 2 discussed some of the key issues arising from this book* worldview here' Do read it' 2n addition, 2Nve gone through8ejriwalNs book, and although it raises many problems, its solutions are based on a belief that every socialist policy s ould remain t e same, merely become more decentralised in implementation' 2 take this one eOample, 0ducation' (his is what Arvind says) 0n a village government school, if a teacher does not teach properly or decides to come late to school or prefers not to come at all , no action can be taken against him, even if a complaint is filed to this effect$ 0n the same ay all schools have shortage of teachers$ )ne teacher teaches 477 to 877 children$ +ometimes only one teacher teaches children of at least three or four classes at the same time$ *his type of education is ineffective and asteful for children$ 0n the name of education a mockery is going on$ *oday the schools are in bad shape$ *eaching is not properP the children do not have desks to sit, ater to drink, fans and urinals are not available$ @henever complaints are sent to the government then no action is taken on those complaints$ @e visited 'hi(uri village in @est Bengal, here the +arpanch told us that though the village had received rupees six crore from the government, they could not construct a school hich as badly needed and ould have cost them only rupees t enty lakhs$ *his as because this money as tied up under various scheme of the government, for instance, the pension fund or construction of houses under the 0ndra Oikas <o(ana or for some other scheme$

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*he teachers ho are employed even today they do not teach properly$ +ome come only at the end of the month to collect their salaries and some ho come, sit under trees and pass time gossiping ith each other instead of teaching and the children then play$ 1very aspect of life and living is controlled by a government department$ #ontracts are a arded for, example, to ards repair and maintenance of electrical ork in all schools directly at the state level$ *he contractor carries out sub standard, shoddy ork and sometimes not hat as reIuired$ But the payment for this ork is forced upon the sarpanch ho is helpless$ 9nder :*0 A:ight to informationB act it as found that in many a schools, up to class ten, of Charkhand state have not a single teacher$ 0n Oamani higher secondary school, 'anuga, +araikela, 'harsa a has 827 children but not a single teacher$ 0n a school of +iroom there are 68H children in ten classes but there is only one teacher, that too for Bangla language$ #urrently it is the duty of the state government to provide teachers in school$ 5any a times people in the above mentioned places rote to the state governments but no ans er ever came$ (his is not news' 2 was Secretary of Assam ?overnmentNs education department in #BB$9B7, before Arvind joined the civil service' (he problems with the education system are well known to 0M0=;O-0' 3ut now look at ArvindNs solution) @hat do you think ho loves a child more, his mother or the secretary of education? 0t is evident that it is the mother$ +o ho do you assume that the villagers ould decide that they do not ant education for their children, health services for sick and the aged? *hey ould naturally ant schools for education and hospitals for the sick and ant all means of development of their village$ *he gram sabha should have the po er to stop the salary of a teacher ho is not coming to the school or not teaching properly$ 0f po er is given to people then they ould look at the problem of shortage of teachers in gram sabhas meeting and employ more teachers that are needed$ *hey ould not be reIuired to rite to state government to create more posts, fill more vacancies and employ staff$ *hey ill decide this issue in the gram +abha meetings and employ themselves as many teachers as may be needed$ 0f gram sabhas are empo ered then the teachers ould be accountable to them and the teachers ould be sub(ected to Iuestioning$ 0f need arises then the gram +abha could punish them, too$ *he gram sabhas ill have the po er to make teachers to their line$

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0f government decides to send free fund then people can, in a gram +abha, decide hat essential things are to be provided to the children in school$ *hey ill be able to take direct decisions$ *hey ould not be obliged to seek some officerNs consent or from a politician or ill not be obliged to seek permission from the state government$ A la should be enacted that transfers all orks related to the village along ith government agencies that provide services and ealth that falls under village (urisdiction$ *he fund reIuired for maintaining the ealth, to carry out orks and expenses of the agencies along ith government employees should be transferred to the gram panchayat$ 0n 4774 an amendment as brought about in the la that governed panchayati ra($ A provision as made that if a government employee did not perform his duty properly then by calling gram +abha they could vote to stop his salary$ *his had some positive effects$ +ome examples are given belo $ @e ent to many schools of villages in Amra ati Block of #hind ara "istrict$ 1arlier the teachers did not come to school$ *hey used to come on the last day of the month to collect their salaries$ @hen this la came into effect, the villagers called the gram +abha here they took a (oint decision that the salaries of teachers should be stopped$ For t o months salaries ere stopped but from third month the teachers started to come regularly$ 0t as such a simple solution$ 0f po er is given to the people directly, they ill take care of their o n development$ % at$s t e problem wit t is solution1

Arvind 8ejriwal knows that engineering takes time to learn' 2t is a discipline' Similarly, public policy takes time to learn' 2t is a discipline' Arvind 8ejriwalNs book, unfortunately, does -O( display necessary policy knowledge E of CaD the principal agent problem, CbD implications of public choice theory, and CcD the availability and use of local knowledge in society through the price system' As a result of this, his solutions do not tap the market' (hey do not tap self9interest' (hey continue wit existin! socialist policies' ArvindNs work does not demonstrate a clear theory of state, either, which might help Arvind Cand AnnaD clarify whether a government needs to directly manage education or not' +o w at$s t e solution1 .ell, the solution is multi9facted, but involves t e !overnment !ettin! out of t e supply of education. ;es, the government must ensure that each child receives the highest Luality education, but that means incentivising the 6A=80( to do it'

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%ow this can be done has been detailed in BFN' About an hour ago 2 spoke at some length with Austice D'S'(ewatia of (eam Anna who advises Arvind' %e is currently reading a copy of BFN that =am Atri provided him, and believes the book is very persuasive' 2Nve asked him to eOplain it to Arvind once he finishes reading it' 2 donNt know whether Cor whenD that will happen, but it is something that (eam Anna needs to get its head around, rather Luickly' 2Nm happy to eOplain these basic issues at great length over the phone to any member of (eam Anna' (he key point, 6r %aFare, is that !ood intentions (O NO9 mean muc in t e field of public policy' It is a deep understandin! of ow we can maximise t e benefits from properly c annelin! uman selfB interest0 t at will ma"e all t e difference on t e !round to ,I..ION+ of oppressed0 unfree people' 2t is time for young bright people like Arvind 8ejriwal to do some serious reading on public policy and discuss with those who understand how ?OOD ?OM0=-A-10 works' 2Nve offered to help, but Arvind needs to open his mind to the fact that he may need to change 6OS( of his solution' (here are eOcellent people available in 2ndia to assist, including key members of the /reedom (eam of 2ndia, but also ?urcharan Das, Parth Shah and 3arun 6itra' Somnath 3harti, key /(2 member, has been representing (eam Anna in its court cases' Ask himI A((EN(G, 2Nm thinking of making comments directly in a .ord version of Swaraj' 'ere$s some initial wor"'

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6y second comment on Arvind 8ejriwals Swaraj


A few months ago 2 pointed out some very serious flaws with ArvindNs book, Swaraj' (his is my second comment' Shailesh Saraf asked today the following on /3) *his is in response to your Iuestion on + ara( belo $ 0 hope other F*0 members ill also eigh in$ 0 am surprised that at least some F*0 members do not appreciate the simple and sexy concept outlined in Arvind 'e(ri al?s book ?+ ara(?$ Here?s my Iuick take$ @e face 4 big issues: *oo much government and too much centrali&ation of po er$ + ara( directly addresses the second issue and indirectly solves the first one$ 1very villageEmohalla that is fully

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empo ered to decide its o n issues ill discuss in its general assembly and allocate all issues in 8 buckets: 2B issues to be solved and executed collectively by everyone 4B to be delegated to representatives and 8B to be left to the market$ 1ven if most villages initially keep most issues in the 2st bucket, competition among villages for talent, capital and other resources, ill Iuickly force all villages to move to ards less govt$ Further, much easier for you to sell liberty to the fe thousand people in your village vs$ selling it to 2$4 bn people$ 1ven if you fail or don?t ant to, much easier for you to move to your preferred village from the lakhs of available options vs$ having to move to a different country altogether$ ,y response +halish, the problem is most fundamental$ *he classical liberal demands liberty as the first principle$ Cust direct self!rule doesn?t meet this reIuirement$ A constitutional limitation on government is the key$ Arvind?s + ara( is extremely confused$ 0t doesn?t start ith liberty as its premise$ 0t (umps too many steps in a sensible policy thinking process$ .lease check the policy competition template at:http:EEfreedomteam$inEpolicy for an idea of hat such steps might involve$ 0?m happy to see a single policy that meet?s Arvind?s mental model and Iualifies the F*0 policy template$ 0 suggest that is impossible since Arvind?s models is focused on self!governance$ *hat is an entirely incorrect ay to look at things, for it ignores the purpose of government$ "ecentralisation of po er is )N;< valid ithin the frame ork of a tightly limited role for government Aat any level, including villageB$ 0 advocate strong but ;050*1" self!government that is very strongly circumscribed constitutionally$ Arvind?s model doesn?t display any theory of state$ !nything goes$ so long as a village decides. 5hat(s totally inimical to classical liberal rule of law model. In brief0 if a ?ram +ab a says I can$t drin" alco ol0 t at is NO9 acceptable # if it also as t e power to enforce it.9 ere can be NO ?ram +ab a anyw ere in India wit power to impose its will and reduce AN/ONE$+ .I=E*9/.

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Arvinds mistaken belief that direct democracy has anything to do with liberty
Eurt er perspectives on Arvind Kejriwal0 and reCuest for more info. A couple of weeks ago, there was an inconclusive discussion on /3' A commentator wrote)

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A= i will continue to work in AAP coF i genuinely like the concept of swaraj and Ianlo"pal'' 2 myself am a believer in participatory democracy. .et people decide w at t ey wantN providing an alternative to 6odi is not the solution' 3ut creating systems so that w oever comes to power is accountable to t e people in w atever e does is the solution' Since no one is prepared to do it, AAP will do it' Gnnecessary laws and restrictions in form of $licenses$ and $permissions$ s ould be in t e dustbin0 w ere t ey belon! ' +waraj will empower t e people to remove w atever laws t ey feel are unnecessary. it will empower t e people to use t e bud!et for t eir viilla!eF town as t e please.. 2 dont want some self proclaimed NeOpertN from the planning commission to dictate his terms to every citiFen' ,y response& 0 agree on most things you are saying$ Ho ever, in a party system, it is Arvind?s ideas that rule the roost$ He is a blood red socialist, and on?t allo your dream of J9nnecessary la s and restrictions in form of ?licenses? and ?permissions? should be in the dustbin, here they belongJ$ *hat?s my dream, not Arvind?s$ Arvind ants to tie up the country in 277s of more licenses, permissions, price controls and everything else$ 0 have ritten 1Q*1N+0O1;< re: the abolition of .lanning #ommission, in BFN and on my blog$ @here has A' ever said such a thing? A= %mm'' ;es he hasnt spoken about getting rid of the planning commission in those specific words'' but he has spoken a hundreds of times about concentration of power in hands of the few, the lack of accountability among those few, and the need to increase public participation in the functioning of the eOecutive' (his essentially what NSwarajN is all about' (he people living in a locality should have the say in the money that is going to be spent for that locality' (he finance ministry should not tell them how and where to spend the money' (here are too many things wrong with our country' 2 believe in the concepts of Swaraj and >okpal entirely' for the rest, i am sure he doesnt have an opinion either'' is is very passionate about political decentrali)ation. +o t at people will decide w at laws t ey need and w at t ey dont.. 9 is is surely not +ocialism0 is it+ As far as QArvind wants to tie up the country in #""s of more licenses, permissions, price controls and everything else'Q i dont think that is true'' (he people will decide if they want such laws'' and no one would want the license raj to continue' A-d on the issue of price controls he has said only this N 2f the people living in parliament can fiO prices, then the people should have a say in it and not the elected representatives only'N On the issue of electricity he

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said Q%e will put fort all pricin! models and mec anisms0 it will spar" off a debate and at t e end t e people will c oose t e model t ey feel suits t em t e best$' 2f !!" people have the right to decide on the prices, then they shouldnt'' and the people should'' 2n the last few days i have had two debates regarding governance and economic policies'' the links of the two debates are below' T +an(eev: 0?ve gone through theseP link not provided here U 2 would be very happy if u go through those and comment on my understanding of the situation'' 3/helped me a lot in forming those opinions' ,y response 0?m no very confused about hat Arvind ants$ @hy, if this guy is not socialist, does he take crores of rupees from hardcore communist, Bhushan? 6hy does he studiously avoid meeting me7 debating with me$ 0 find it really implausible that Arvind, ho has called himself a leftist publicly, has suddenly started talking about releasing control over the economy$ :ontinuin! t e discussion O8, time for me to close this discussion' 2Nm going to be hasty, hence not concise' 2 hope A3 will bear with me' 2 note that A3 has read 3/- but missed a key point Cwhich has perhaps been more clearly discussed in DO/ E but unfortunately that book remains a patchy draftD' (he point he has missed is illustrated below Ctaken from draft DO/D Tclick for larger imageU

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-ote the key difference between the socialist and liberal) the former gives primacy to the society, the other to the individual' (hat is the first and most significant difference' (he rest is merely detail' 2 accept Qparticipatory democracyQ as a mechanism to get us an accountable government, but 2 donNt see it as an end in itself' 2 canNt therefore agree with A3Ns comment )2 myself am a believer in participatory democracy. .et people decide w at t ey wantNA -oI People cannot be allowed to decide Qwhat they wantQ' (hus, for instance, majorities cannot be allowed to trample on minorities' All social decisions must be tightly constrained through constitutional methods to prevent misuse of power' Democracy is -O( an ideal' >iberty is' Democracy merely empowers the society to replace its governments' 2t serves almost no other functional purpose in life' (herefore, constitutional restrictions on government, and rule of law, are the key, not democracy' 2f we agree that democracy 1A--O( impose unnecessary restrictions on our liberty, then Qunnecessary restrictionsQ in 2ndia could not have arisen in the first place' 2ndeed, had the original CAmbedkarD 1onstitution not been D0S(=O;0D by -ehru and his godchildren, the 2ndian government could not possibly have imposed the hundreds of unnecessary restrictions it did Cand doesD' All these restrictions were collectivist enterprises, through a socialist constitution' -ow that our original constitution has been destroyed entirely, it would be entirely improper to blindly QempowerQ people' .hatever empowerment has to be done must be done under strict constitutional constraints' (here are, for instance, no automatic rights in the liberal states Qempower t e people to use t e bud!et for t eir viilla!eF town as t e please..A 2n this particular case 2 assume you are referring to funds collected within the village' 2f villagers are receiving funds from outside Ce'g' city dwellersD then wherefrom do they get a natural right to use these funds as they please+ 3ut, of course, all funds should be accountable' (he state government must be accountable for state level funds, and so on' .hat we need is good governance systems' A3Ns Luestion Q+o t at people will decide w at laws t ey need and w at t ey dont.. 9 is is surely not +ocialism0 is it +Q ;es and no' 2f people donNt impinge on othersN liberties, then they S%O<>D surely get the laws they QwantQ' 3ut w at if t ey want to create a bi! !overnment w ic steals property0 taxes eavily0 and stops enterprise1 %ould t ey still be entitled to t ese laws1 No ' (hen

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they would be supporting socialism' So the Luestion is misplaced' 2n some cases this leads to socialism, in others not' (he mere fact of Swaraj doesnNt tell us whether it is socialist* liberal' (he P<=POS0 of swaraj is the key' 2f it merely represents unchecked Qparticipatory democracyQ then it is socialist' 2f, like what 2 advocate, it represents well9organised professional and accountable local government, then it is not socialist' 6y guess is that Arvind uses the subsidiarity principle CSwarajD as a socialist concept' 2 use it as a classical liberal concept' (hese are poles apart' P=210S Qwe will put fort all pricin! models and mec anisms0 it will spar" off a debate and at t e end t e people will c oose t e model t ey feel suits t em t e best$' 2f !!" people have the right to decide on the prices, then they shouldnt'' and the people should''Q .ell, 2 hope A3 will appreciate why this statement is P<=0>; socialist' A price is an eOchange value voluntarily determined by buyers and sellers' (hese, being free citiFens, should be free to decide themselves' (here is no role for the government' O->; a socialist government interferes in prices' .hy should !!" 6Ps have a QrightQ to determine prices+ Our 6Ps are our S0=MA-(S' .hy should our servants determine prices in the marketplace+ >et only citiFens determine prices' ArvindNs desire to determine prices, and his refusal to Luestion the QrightQ of 6Ps Cour servantsD to set prices, reflects a socialist mindset' Arvind should be challenging the socialist 1onstitution of 2ndia, the socialist mindest of 6Ps who want to determine prices' 2nstead, he wants more direct democracy in such cases' <(OP2A- D2=01( D06O1=A1; Swaraj as conceptualised by Arvind is super9utopian' (here is no way that people can QdecideQ prices directly' (he only democratic way is the market, but Arvind is clearly not referring to that' (0-(A(2M0 1O-1><S2OA3 has understood many market ideas very well E and indeed clearly understands them /A= better than Arvind' %owever, even A3 needs to distinguish between democracy as a mec anism to remove tyrants >classical liberal@0 and democracy as an end in itself >socialist@' 2 am still not clear that Arvind is a classical liberal' 2Nd like to invite A3 to provide me with details about A8Ns statements that prove he respects the 2-D2M2D<A> and allows people to buy, sell, produce and otherwise manage their own affairs without unnecessary imposition by government'

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2f 2 find strong evidence of such a position, 2Nll go out of the way to support A8' 3ut 2 need strong evidence' (ill then, all 2 have are previous statements of A8 and ;ogendra ;adav* 3hushansS and all these statements are deep red socialist' A3, over to you'

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>oknayak Aayaprakash -arayan would have (O(A>>; opposed Arvind 8ejriwals version of Swaraj
>oknayak AP and 2 are on the same page on a very large number of things' (his is what AP wrote) No kind of democracy can exist ithout the democratic freedoms freedom of conscience, of association, of expression and the rule of la $ @here these freedoms do not exist, nor the rule of la , there can be no democracy$ 0 take these ords as axiomatic and inscribe them in bold letters on the doorway before entering the house of 0ndian democracy$ =+ource> <nfortunately, there is -O =0/0=0-10 to liberty in Arvind 8ejriwalNs model of Swaraj' 2 have repeatedly argued that A-; democratic model must be S0M0=0>; =0S(=A2-0D through guarantees of liberty' 3ut 8ejriwal and his misguided supporters repeatedly oppose A-; such restraint' (o them the people are right, no matter if a khap panchayat kills innocent people' (his nonsensical conception of Swaraj and socialism that is promoted by AAP is anathema to me' 2 want liberty first and last'

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>oknayak Aayaprakash -arayan would have (O(A>>; opposed Arvind 8ejriwals version of socialism
/rom BFN) )nce it as clear that Nehru as determined to impose the :ed +ocialism on 0ndia, his close colleagues like Cayaprakash Narayan tried to temper his misplaced enthusiasm$ Narayan, ho had started his career as a 5arxist, but later concluded he had been on the rong path, declared prophetically: History ill soon prove that #ommunism, instead of being the final flo ering of human civilisation, as a temporary aberration of the human mind, a brief nightmare to be soon forgotten$ #ommunism, as it gre up in :ussia and is gro ing up in #hina no , represented the darkness of the soul and imprisonment of the mind$ colossal violence and

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injustice. @hoever thinks of the future of the human race in these terms is condemning man to eternal perdition$2 AP realised the (O(A> /O>>; of communism late into his @"s and G"s' A great pity' %e also S(=O-?>; OPPOS0D /abian Socialism Cwhich involves 1ommanding %eights of the 0conomyD' 2n his most famous writing Ca short letter called *otal :evolution, which 2 first read when 2 was #! E 2 still have a copy of the original publication somewhere with me but canNt readily find itD, he wrote) +ome industries, banks, life insurance have been nationali&ed$ :ail ays ere nationali&ed long ago$ Ne large public!sector industries have been established$ But all this adds up to state capitalism and inefficiency, aste and corruption$ #tate capitalism means more power to the #tate$ mainly the state bureaucracy$ or hat Lalbraith aptly calls ?the public bureaucracy?$ *here is no element or trait of socialism in all this$ *he orking class and the public or, let us say, the people have no place in all this except as orkers or consumers$ *here is no economic democracy, hich is so much talked about, nor even industrial democracy$ *his does not mean that 0 am opposed to socialism$ 0t is only because 0 am so deeply concerned about socialism that 0 am pointing out all this$ It is a pity that our socialists very largely e,uate socialism with nationali.ation $ =+ource> .e see clearly that AP was in favour of liberty, grassroots democracy and limited role for government' -ote that he opposed even the nationalisation of railways' 3y his G"s, he was talking like what 2Nve been saying publicly for the past #! years' %e was essentially advocating capitalism' %ad he learnt some more, read some more, he would have understood eOactly the value of the model advocated in 1hanakyaNs Arthashastra and in my book, Breaking Free of Nehru' One thing he would have opposed (OO(% A-D -A2> E is the brand of socialism touted by Prashant 3hushan and Arvind 8ejriwal' 2 trust Arvind will one day listen to what 2Nm saying'

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Arvind*Prashant please dont talk about decentralisation while promoting 0K(=060 centralisation
(his is my fourth comment Cvery briefD on Swaraj and PrashantNs urge to nationalise as many thing as he feels are not suited to the market'

#ited in Hangen, @elles, After Nehru, @ho? :upert Hart!"avis, ;ondon, 2F38, p$423$
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-ationalisation is the 0K(=060 form of centralisation' And price fiOing is an 0K(=060 form of centralisation' .ith such a model in mind C#"" per cent socialistD, why talk about decentralisation+ Such QsweetQ words donNt get past me' 2 see right through these strategies to gain greater and greater control over the lives of people' 9 ere is a 9O9A. :ON9*A(I:9ION between t e Asweet tal"A of decentralisation >+waraj at t e villa!e level@ on t e one and0 and +G-E*B:EN9*A.+IA9ION >nationalisation0 price fixin!@ on t e ot er. >et it be known that Arvind and Prashant are promoting GNA(G.9E*A9E( +O:IA.I+,' ?iving the eOample of crony capitalism Cwhich is A>.A;S caused by socialismD is a very poor way turn down capitalism E which is totally different from crony capitalism' .ithin the capitalist framework there is very significant decentralisation E subsidiarity E but that too is M0=; S0M0=0>; constrained' A government has no license to curtail liberty 0M0- at the local level' -owhere' -ever' (he government must be kept (2?%(>; under the leash' (emocracy must be ti! tly limited in terms of t e subjects and topics it can pass jud!ement on. (emocracy is not license to destroy liberty.

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B'

Arvinds anti9science environmentanalism

2n his book, Swaraj, Arvind makes a wild assertion about Hindiscriminate use of a natural resource which 2 have then critiLued' %e also makes the claim that Hmining companies do not take care of the environment while eOtracting the ore, to which 2ve pointed out that this is an issue of the terrible governance system and laO regulation in 2ndia E once again attributable to socialist ideology' %e sees the symptom and cant see the causes' (hats because he doesnt understand either economics or modern public administration theory'

B'#

Stop this folly against ?6 crops, anti9science Arvind 8ejriwal


2Nm shocked that Arvind 8ejriwal Can engineer with some knowlege of physics but cearly with P0=O knowledge of biology and the scientific methodD and other anti9science people have taken to the streets to QprotestQ genetically modified crops' JAam Aadmi .arty convener Arvind 'e(ri al said his party as opposed to genetically modified crops and his colleague .rashant Bhushan had filed a .0; in the +upreme #ourt against it$J TSourceU .hat a mess' .hat is this joke+ /irst A8 doesnNt understand economics' -ow he doesnNt understand science' % at does e understand11 <nfortunately, good friend Devendra Sharma has also got involved, saying) QDevendra Sharma said 3=A2 and ?6 crops were being opposed as 4prevention is better than cure'5 2 had discussed this Cand many other mattersD with 6r Sharma in %ardiwar in April "#$ and 2 thought we had agreed that S120-10 and 0M2D0-10 must guide us, not our hunch' 2 am truly distressed that he has joined socialist A8 in this charade that will harm 2ndians badly' 9 ere is NO evidence t at ?, crops are armful. 9 e benefits of ?, crops EA* exceed any arm >w ic is KE*O@. 2 donNt know about the biotechnology bill so wonNt comment on it but about ?6 crops 2 do know) they are good for mankind' (here may be issues regarding regulation which can be further eOamined, but to stir up the people against ?6 crops is like saying you donNt like science or the scientific method'

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Addendum /or those not clear that ?6 crops are perfectly safe, here are some links) ?enetically modified crops are A+ ?OO( A+ NO*,A. :*O-+ %ill t e fool Dandana + iva now apolo!ise for !rievous as caused India1 arm s e

Eurt er notes on or!anic farmin!0 ?, and a!riculture policy more !enerally

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#"' Arvinds arrogance and lack of desire to learn

#"'# Arvind 8ejriwal, you say that you are willing to listen to better ways to fight corruption+ (hen here they are
6y attention was invited to this interview)

2n this Prashant 3hushan and Arvind 8ejriwal seem to suggest that 2/ 30((0= SO><(2O-S (O =06OM0 1O==<P(2O- 0K2S(, (%0; .2>> 30 %APP; (O >2S(0-' .ell, Arvind, if you are serious about removing corruption, then please read BFN E it contains the comprehensive package for removal of corruption' (o make things easy for those who donNt like reading books, 2Nve summarised the issues in two blog posts which Shantanu has kindly combined here' And to make things 0M0- more simple, for people who can only see O-0 thing at a time, and canNt look at the whole picture, 2Nve even said this E that Anna should focus on O-0 key demand) state funding of elections' 2 know this doesnNt look like Q/2?%(2-?Q corruption' 2t wonNt bring down the corrupt ministers who rule 2ndia today, but it will ensure that -O 1O==<P( P0OP>0 0-(0= /<(<=0 PA=>2A60-(S'

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Arvind0 muc as I respect your wor" >alt ou! I$ve expressed clearly its limitations earlier0 ere@0 I su!!est t at your dia!nosis of t e problem is %*ON?. 1orruption is caused largely by CaD electoral laws that O->; A>>O. (%0 1O==<P( (O 0-(0=, and CbD socialist policy that 1=0A(0S OPPO=(<-2(20S /O= 1O==<P(2O-' 1orruption is -O( caused by any QshortageQ of >okpal' %ence if you are S0=2O<S Cand 2Nm not sure you are, given 2Nve been writing about this for Luite some time now E and my book is widely available, free of costD, please consider the detailed references above' (o simplify matters even more, let me list the five t in!s 2 wrote about and which are published on ShantanuNs blog) #' State funding of elections ' =emove all limits to electoral funding $' 0nsure the 6OS( =2?O=O<S disclosure reLuirements for political donations 7' Pay the politicians M0=; .0>>' !' 0lect politicians who promote classical liberalism' ;ouNll note that the >okpal bill doesnNt figure in this list' 2t is there in BFN Csomething implicitly on these linesD, but it is a 6<1% >O.0= O=D0= QsolutionQ, for it will -O( work unless BBW of the people who enter parliament are good people' >et me now see if you are %O-0S( A-D ?0-<2-0 about your openness to new ideas, or you will simply continue to insist that your views are right without considering the D0(A2>0D alternatives that others E with SO>2D eOperience and analysis E /A= 6O=0 (%A- ;O< 3=2-? (O (%0 (A3>0 E may care to suggest' 2 look forward to your changing your mind on the >P bill and focusing on these five solutions, instead' 2 also look forward to your joining /(2' (ogether let us take over the parliament and change 2ndia'

#"'

Arvind 8ejriwal, 2 trust you are %O-0S( about your reLuest for public input
/rom what 2Nve heard about Arvind 8ejriwalNs personal style Cfrom those who know him personallyD he is an eOtremely undemocratic person' 2n
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particular, once he has made up his mind, no one can change his mind' %e makes a sham of QlisteningQ' A pretence' 2n particular, he does -O( engage with anyone who Luestions his approach' 2 donNt know how far these allegations are true, but this much is #"" per cent true, that Arvind 8ejriwal E despite his promise to reply to my emails and to read my book E after 2 made the effort to go and meet him, has not responded even once to my emails' %e has surely been busy but it is I,-O++I=.E for someone to be so busy that he canNt reply to at least #" emails over the course of over four months' (hat too, after promising to engage through emailI It does appear t at Arvind Kejriwal is +9G(IOG+./ ADOI(IN? me0 since I am onest and clear enou! to Cuestion is approac . %ad 2 fawned over his ideas, he would have surely been keen to get me on board' At least thatNs the tentative conclusion 2Nve drawn' (hatNs not a good look, Arvind' <nder these circumstances, it is hard to stomach his alleged QappealQ) JArvind 'e(ri al asked the public to suggest a name for their political party, its structure and manifestoJ =+ource>$ Is t is an 'ONE+9 appeal1 I$m not sure. 2Nve already eOplained to Arvind a -<630= of things over email and through blog posts Capart from the " minute meeting 2 had with him in /ebruaryD' 2n brief, he should NO9 talk about forming a party without making clear what it might stand for' And >ok Satta already eOists' (here are others, as well' Party means -O(%2-?' Only ideas matter' 2Nm going to send this blog post by email to Arvind, and suggest that) a8 )e commit publicly to only 049 goal& liberty$ with accountability b8 )e commit to I459-4!: /9;0 -! Y <i.e. he will 04:Y have 049 vote and his competence will determine how far he rises in the "party"8 c8 )e commit to philosophical agreements and detailed policy being agreed by !:: those who(ll contest elections under the banner of liberty.

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(hat, by the way, is precisely what /(2 is doing' 2t is a 1<< per cent democratic body, committed entirely to liberty and good governance, and is working out Camong its members, being those whoNll contest electionsD the relevant philosophical agreements and policies' 9 is is ard wor"0 Arvind. It is not as simple as sayin!& AI$ve written a boo" +waraj0 now you all just follow meA. Sorry, Arvind, you and 2 can Calong with #"""s of othersD actually reform India$s !overnance, but not if you are going to make a P=0(0-10 of consultation' 2 donNt think you are serious' ;ou have -O( 3O(%0=0D (O 0M0- =0SPO-D O-10I %ow can that beI 2Nve been in this space of political reforms in 2ndia since /ebruary #BB:, nearly #7 #* years now, and have seen one failure after the other due to s abby strate!ic t in"in!' /our attempt to bulldo)e your A+warajA on India will fail. ;ou 6<S( begin this journey by realising that you ave virtually NO I(EA about !ood !overnance and !ood policy. /ou aven$t spent t irty years studyin! t is subject. /ou are a novice. Admit it. 'umility is t e first step. (hen learn' (hen debate' Ask Luestions' I$m NO9 as"in! you to accept my ideas uncritically. : allen!e my ideas. ,a"e me prove w y t ey are relevant and sensible. 9 en ma"e up your mind. 2n any event, you must not rush into this business of politics, at pain of failure' ;ou will fail' 0ven 2 will oppose you if you continue down the socialist, undemocratic path you seem to have chosen' /ou must pause and underta"e a serious (E=A9E. 2f you are %O-0S( about your stated goals for 2ndia Cnot for yourselfID then youNll respond now, to this blog post CemailD and will stop talking about starting a new political party till the basics have been hammered out and organised' Are you %O-0S(, that is the key Luestion now'

#"'$ Publishing Arvind 8ejriwals email of #G -ovember "#


2n his response, Surajit Dasgupta asked, Q2 am told by one of your fellow activists at /(2, 8ejriwal had shot back at you, HDo you think you are the only wise economist around+ 2s this true+Q
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Since you have raised this matter publicly C2 did not feel it appropriate earlier to publish ArvindNs email) and 2 think 2 know which /(2 QactivistQ you are referring to E btw, we are not QactivistsQ we are membersD, 2 will now publicly set the record straight E so everyone can see ArvindNs approach to those who wish to engage with him' (he following is what Arvind wrote, after nearly #! emails to him to which he did not respond, following on a meeting in /ebruary in which he said heNd read 3/- and get back to me' 9 is was my email to a few people %I9' A :O-/ 9O A*DIN( >wit out AN/ expectation t at e$d respond0 since e$d not responded to previous 1<B15 emails Arvind has studiously refused to engage with me despite making a promise in /ebruary to read my book and get back to me' %e keeps insisting on taking 2ndia down the path of socialism' (hat 2 will fight against' If Arvind doesnt$ c an!e0 I will offer to publicly debate is many >not all@ incorrect ideas. im and

3ut first let me P<3>21>; teach Arvind a few things about economics E if he is =0A>>; interested in 2ndiaNs future, and not merely in his own ideas' Arvind, please read) http)**sabhlokcity'com* "# *##*economics9lesson9#9 for9arvind9kejriwal9an9economics9illiterate* ;ou are capable of taking the debate on corruption right to the QtopQ' 2Nm capable of publicly putting down your wrong ideas' ;ou are a good man but 2 will not have one more QgoodQ man who takes 2ndia down the death trap called socialism' Y+an(eev: 0?d like to add that if you go back to the first of these emails not this 2Hth one, you?d note a much more positive note$ But given Arvind?s insistence on not responding, nor remembering his commitments, you can sense a bit of exasperation in this email of mine$ Z Arvind$s response 2 have read ur mail and ur blog' I don$t remember receivin! any communication from u earlier. 3ut 2 must admit that it is Luite likely that u might have sent mails and 2 might have missed replying to them as 2 receive several mails everyday, though 2 try my best to respond to as many as possible' <r mail seems almost a threat E 2 am supposed to accept what u say, else ['

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Gr blo! Cuotes statements supposed to ave been said by me0 w ic I never said' >ooks like some kind of a propaganda to deliberately confuse people against us+ Since 2 never said those statements, on which ur entire blog is based, 2 canNt even comment on it specifically' 2 just have a small suggestion' Kindly don$t treat urself as t e last expert on economics and impose urself as a Ateac erA on all political parties' All of us learn all our lives' >etNs not lose that basic humility' T+an(eev: 5his was as insulting as one can get= @here did 0 even remotely suggest that 0 as the Jlast expertJ on economics$ +econd, ho "A:1 Arvind lecture me about humility ithout kno ing me% 0?m as full of myself as ater spilled on the floor$ 0 have let this silly childishness of Arvind pass$U 8indly do not draw any conclusions if 2 am unable to respond back to ur mails in future' 2 can only assure u that 2 wud most certainly read ur mails and discuss all good ideas suggested by u with our team' 3est wishes Arvind 8ejriwal' ,y response to Arvind& Arvind (hanks for your first response' >et me first reiterate that 2 believe you are a good man, thatNs why 2 interact Cor try to interactD with you' 9otal inte!rity is my first reCuirement before I meet or discuss anyt in! wit anyone. 2 appreciate you are very busy as so didnNt respond to more than #! emails to date Cpl' check your recordsD but I$m disappointed t at you seem to ave entirely for!otten my personal meetin! wit you in Eebruary t is year in w ic I not only recommended t at you join politics0 but t at you join E9I and read =EN. /ou promised to read my boo" and !et bac" to me' Please note the record of this meeting on my blog) http)**sabhlokcity'com* "# *" *dear9arvind9the9only9path9to9corruption9 free9india9is9through9policies9of9liberty* (his blog post and associate photo might ring a bell' ;ou had clearly promised to get back to me after reading my book Cwhich 2 not only send you earlier, but am attaching once againD' If you ma"e promises you don$t intend to "eep0 I su!!est you don$t ma"e t em ' -ow for your view that you havenNt said anything about fiOing prices of essential commodities' So how do you eOplain these)

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aD (he news) http)**in'news'yahoo'com*# 9things9that9arvind9kejriwal9s9 party9promises'html bD (he %indi PD/ released by your group recently) http)**sanjeev'sabhlokcity'com*6isc*2A1manifesto9hindi'pdf I$m attac in! a screen s ot to remind you about w at you$ve been sayin!. 2 canNt read inside our mind, but from what you publish 2 believe you could benefit from basic economics' 2Nm happy to spend as many hours Cover phoneD as you think you need to clarify your mind on basic ideas about governance and economics' >et me remind you at this point about the /reedom (eam of 2ndia Cwhich 2 introduced you to, at our meetingD E being a team of leaders 2Nve been organising since ""G to lead 2ndia politically' 2t is a preparatory platform, that is focused on finding 2ndiaNs best leaders' .e have recently organised a national policy competition with =s'! lakhs priFe) http)**freedomteam'in*blog*content*all9india9policy9writing9competition' Please read the competition documents, particularly the policy template' (hese are eOpected to be eye9opening for most 2ndians' Arvind, 2Nm humble enough to realise that 2 donNt know everything' 3ut donNt worry about my $" years of knowledge of economics and public administration' 2t is irrelevant that 2 was in the 2AS, taught at the -ational Academy, got some of the worldNs best scholarships, did a PhD, wrote a book, and work as a senior adviser in the worldNs best government system' (hatNs just noise' 3ut consider t e fact t at I$m advocatin! ideas w ic India$s !reatest economist& : ana"ya0 advocated0 in is Art as astra ' 1hanakya had a brilliant solution for corruption Cwhich has nothing even remotely to do with >okpalD' 1hanakya was more sophisticated in his views than almost anyone alive in the world today' +ure0 I may well be a fool0 Arvind # and t e world will soon find out # but I do "now t at in liberty lies t e solution to India$s >and t e world$s@ problems' 2 suggest you consider keeping your promise to read my book' Please note that 2Nm into total politics and total reform of 2ndia since #BB: C2 resigned from 2AS in ""# to pursue that path to reformD, and I$m dead opposed to any int of socialism. /(2 has a very strong set of leaders in Delhi' 2 urge you to contact Somnath 3harti Chead of your legal cellD to organise a meeting with Delhi /(2 chapter which includes not just 22(ians and eO9senior officers from armed forces, but supreme court lawyers, and entrepreneurs' Eit er way0 I trust you will oppose socialism wit all your mi! t.

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Even if I !et t e sli! test w iff of socialism I attac" it wit all my mi! t. 'avin! you join forces a!ainst t is (EA9' 9*A- would be !ood. =egards Arvind never bot ered to reply to t is0 nor furt er correspondenceFdiscussion. as en!a!ed in any

2 trust this clarifies, Surajit' ;es, Arvind did insult me DE*/ badly, as you can readily see' 3ut 2 have taken it in my stride, just like you have called me all sorts of names and compared me with Pakistanis' TQ .akistani representativesN ho respond to 0ndiaNs allegations pertaining to the 'argil @ar, the 43E22 terrorist attacks and beheading of our soldiers QU' (his kind of childishness doesnNt bother me' 2Nm just not bothered if people insult me' ;our Cand othersND insults wash off my mind like water off a duckNs back' (hose who know me understand that 2 donNt care for such claptrap' -one of this detracts me from my #"" per cent focus on results for 2ndia' 2Nm O->; bothered that we get the right policy solutions for 2ndia' And, btw, 2 donNt hold such things against people' So youNre fineI -eople li"e you or Arvind can insult me as muc as you wis . Enjoy0 +urajit0 if it elps you! %e keeps saying that he is QopenQ to ideas, but 2Nve never come across a man more closed to discussion of ideas he doesnNt yet understand' 3ut this is common teOtbook economics' And he is totally closed to understanding basic economics' As a result of this eOperience, though, while 2 continue to copy one or two emails to Arvind, 2 will NEDE* make any attempt to meet or talk to him' %e must take the initiative if he wants to find out why 2 may have something useful to say' 2 might, however, in due course of time Cand if absolutely necessaryD, challenge him to a public debate' (hat might be the only way to enter his (O(A>>; 1>OS0D mind' ,,,, 3tw, on a separate point, my way of analysing long comments received is by starting a new blog post in which 2 carefully read and annotate them' So please donNt mind if 2 publish a separate blog post on your response' ;es, and we will also talk on /acebook as well' 3ut /acebook is private' 2 prefer public discussion'

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##' Miews of those who have worked with Arvind

##'# Person who worked with Arvind 8ejriwal uses words like 4socialistic, hoodwinking, posturing, suspect his intentions5
2ve only met Arvind 8ejriwal once E in /ebruary "# ' 2 was very hopeful that this young man will do something good for 2ndia' 2 strongly encouraged him to join politics' 2 followed up by writing to him many times, and tried my best to get him to listen to broader issues of governance' <ltimately 2 did get one response E but very negative' And a much worse response from his key think9tank ;ogendra ;adav' 2ve been hoping for a long time that Arvind, Anna and =amdev would come together on one platform, alon! wit .o" +atta0 etc E ie on a platform of greater liberty and world9best governance frameworks' (hen we could all have given 2ndia a serious alternative' So, to whatever eOtent possible 2 worked with all of these groups' 2n doing so 2 was able to receive an excellent response from Swami =amdev, good response from AnnaNs team but pathetic response Clike being pushed asideD from Arvinds team' And, of course, 2 have been closely engaging with >ok Satta since a very long time' 2 know AP and his work and have interacted with him for over #7 years' It almost seemed from my interactions t at Arvind didn$t want to wor" wit anyone else. 6y suspicion was confirmed when Arvind said he wanted his 4own5 party' % y1 % y not .o" +atta1 2 wrote that clearly on my blog E and copied to him E asking him to join >ok Satta and not create a new party' 3ut he didnNt' .hy+ 3ecause .o" +atta is *A(I:A../ different from AA-' 2t is liberal and wants good policies' =ead the kind of material AP has published on >S website' Outstanding Luality work' Arvind, on the other hand, wants more government' And Arvind also couldnNt work with an outstanding leader like AP who has spent #G years of his life slogging away for reforms in 2ndia' Arvind wanted to be QheadQ of his party' %e was clearly into his O.- self9aggrandisement, not 2ndiaNs future' .e have a great shortage of good young leaders in 2ndia' So in this situation we need those who can unite, not those who divide' (o facilitate such union, /(2 has recently created the +one 'i #hidiya movement and Sone 8i 1hidiya Eederation to bring all good people together on a

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common vision' +uc collaborative wor" is essential before any political success can be ac ieved. 3ut Arvind clearly had no interest in collaboration' %e spurned /(2Ns outstanding leaders' %e spurned AP' %e spurned Swami =amdev' 2n this conteOt, what 2 read today on /3 has disturbed me even more' 2 had skimmed through some of the many comments in the morning C/3 hides earlier commentsD but finally got time to read all comments' .hat 2 read from a person CletNs call him 666D who has .O=80D with Arvind was shocking' (hese comments are important enough to publish for wider knowledge' 2Nve not posted the personNs name' %e may wish to do so separately if he wishes' (he information below reflects a potentially serious problem of personality in A8 and his camp E in addition to his well9known problem of bad ideas' (he nation which thinks so highly of A8 must know this' 2 hope Arvind is listening E for once' I ereby reCuest Arvind to disband AA- and !et all is members to join .o" +atta0 as a si!n of respect for I- E the liberal who has been working on 2ndia9reforms for #G years) longer than me' 2 reLuest >ok Satta to disband all its leadership positions Cafter AAP has joinedD and hold a fresh election within three months' 2Nll also reLuest as many /(2 members who can to join this formation' Plus everyone else' 2f such a 6AAO= /O=10 comes into being, then we wonNt need a separate new party' If AA- is e!otistic and can$t join .o" +atta t en at least let AAs ould join t e +one Ki : idiya Eederation and a!ree to t e common visionF a!enda for c an!e. 9 en we could potentially create a NE% -A*9/ in t e comin! wee"s in which leadership issues are resolved from scratch, after everyone has joined' >etNs call such a thing Sone 8i 1hidiya Party' (his is about 2-D2ANS /<(<=0' 2Nm not making random comments' 2 hope Arvind will do the right thing for 2ndia' 2f AAP does none of this but goes alone, 2 will be its most strident opponent' (o me it is as bad as 1ongress or 3AP, being socialist' 0ven if it is not corrupt, it .2>> create corruption' And for it to fail the courtesy of working with others E when 2ndia desperately needs all good people to join hands E would be criminal' If !ood people of India can$t wor" to!et er at all, 2Nd then ask people to support -arendra 6odi Ceven 3APD from the outside as P6 in "#7, and pray that he implements good policies and governance frameworks' 2n
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any event, 6odi seems to be far better than Arvind' 6odi talks the language of minimum government' At least he says the right thing' And five people 2 respect) Sharad Aoshi, 6adhu 8ishwar, Swami =amdev, Austice (ewatia, and ?urcharan Das are willing to give 6odi a chance' (hatNs more than can be said for the disorganised group of QgoodQ young people of 2ndia' AP can be the rallying point for 2ndiaNs youth' 3ut each wants his or her own party' PP, heres a small peep into my interaction with Arvind \ 1o' Driven by eOtreme respect for his courage at taking on the establishment, 2 reached out to them for QactivelyQ strengthening the movement' <pon close interaction 2 realiFed) aD Arvind O :o are intolerant people who cant hold a discussion for more than ! minutes and get aggressive about itS bD (hey function with a basic belief E if 2 have come forward to strengthen their movement, then i have forfeited my right to ask Luestions or give opinions and that 2 eOist for their purpose and convenience' cD 9 eir ideolo!y is completely socialistic and that is bound to do more damage than good' Some of their core members are actively and aggresively arguing that Qmore governmentQ is the solution for our problems' (hey have little if no perspective on many issues of eOtreme importance' dD i have at least on $ to 7 occasions found them to be eit er completely mismana!ed and F or oodwin"in! wit incomplete or alf trut s' Some of that can easily be charged to be outrightly duplicacy of standards' eD /inally, much of their support seeking campai!n is based on r etoric slo!ans w ic can stir emotions but will not stand to scrutiny even for a few moments' 2 also know that they chose their subjects selectively' (heir method of getting political support is turning out to be the same age old methods practiced by all political parties and which is driven by political success and not political purpose or ideology' 2 also believe that he is turning out to be an eOtreme disaster for the nation' %owever, my comment is independent of the link and is my thought on the substance of the discussion why Arvind \ 1o is a disaster for the nation' %appy to substantiate any of the points 2 have mentioned' +ome of my experiences and events t at I witnessed at AA- office in ?)bd were not in! s ort of dis!ustin! !iven t eir public posturin! and claims.

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-ot for a moment have 2 pushed their morale down so long I was in awe of t eir purpose' 2nstead I elped in all ways wit resource0 time and t ou! ts' %owever, once t e crystal !a)in! stopped and t e myt s bro"e >after closer interactions@0 I am indeed one of t eir stron!est detractors. I ope one day I am able to ar!ue wit Arvind in full public view. (he biggest damage that AAP is doing is the negativity and cynicism it is spreading amongst the well9meaning youth of 2ndia who unfortunately are gravitating into their ploys as the current economic scenario fails to provide them alternate opportunities' It is a bad idea to arness frustration by false opes. 9 e political ideas embedded in AAand +waraj are neit er practical nor desirable !iven t e special nature of our context. A political party is only as good or as bad as the cadre it has and the direction the cadre gets form its leadership' 3eing an 22(ian is no criteria for being a political thinker and harbinger of change that 2ndia needs' 2 know of many 22(ians \ 226 people who would safely set aside their value systems for near term monetary gains' (heir sample is probably more unfavourable than a random sample from common 2ndians' .hat a feudal minset this argument is' 2ncidentally, 2 believe that the feudal mindset is the biggest bottleneck to Swaraj and at the root of all problems, including rape' %e need to c an!e our decadent political systems from wit in and t at will appen by systemic measures and not mere r etoric. :orruption is symptomatic of t e problems not t e cause of t e problem' 1uring corruption Cand 2 do not think >okpal is the only solution for itD, is like curing the symptom and not the cause of the problems' AA-0 in my experience0 as no idea about t e real causes0 let alone t eir solutions. 2t has emerged to be no eOception and the same old wine in new bottle' 2 am not surprised at the argument, Qwhich other political party is different''at least we are[['etc etc['for >okpal[[Q 3tw going by the disposition of some of his core leadership team, I can safely infer t at not only are t ey socialist but pretty muc fascist about bein! socialists' (hey bum people around whenever and their only eOpectation is either be subservient or go away' 2 speak from eOperience both here on /acebook as well as on the ground' 2 too believe that a bad idea can do a lot of damage notwithstanding the great intentions that you may have about serving our motherland' In t e case of Arvind O :o. now I am even suspect about t e intentions. And I do not spea" from mere !ut feel but analysis.

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2t doesnNt reLuire a super intellectual but only an open mind to see through the !ame w ic is bein! played on t e well meanin! yout of India' Also first hand eOperience \ eOposure to the thoughts behind helps to analyse the real purpose' Irrespective of w atever intention e may ave be!un wit 0 now Arvind O :o are totally focussed on political success for t emselves and not a political change of purpose for the country' Anil Sharma ji for any policy related Cuery t eir standard answer is refer to +waraj boo"' -one other than Arvind Kejriwal as"ed me to prepare policy document on AEnablin! Entrepreneurs ipA and w en I as"ed im w at will you do wit it0 e simply left t e conversation' So much about megalomaniacs who suffer from such severe feudal mindset while they go about claiming they are and for the common person of 2ndia' Anil Sharma ji w en I as"ed about t e point of view on some really important issues0 per aps more t an corruption0 t ey sounded completely disinterested. And in every interaction all 2 could see was the purpose to gather numbers to make the presence felt on the roads and streets rather than drive any meaningful change or purpose' (here is still time for AAP to reject its socialist foundations and to world9 best governance and policy frameworks' .e need S;(0621 =0/O=6S, not better management of the eOisting =O((0- system by QgoodQ people' .e need to build systems where bad people simply canNt eOist' Anything that depends for its eOistence on QgoodQ people will A>.A;S fail' 2 hope AAP wakes up soon' 2Nd be most happy to endorse Arvind and his group Cjust like 2 endorse AP and >ok Satta E and also Swami =amdevNs persistent effortsD if they can work for 2-D2ANS future, not their own' 2 have no problems with Arvind being Prime 6inster or president or whatever he wants to be E 2/ %0 3=2-?S ?OOD PO>2120S (O 2-D2A' And is able to work as a (0A6 60630= and bring together the thousands of people who have been working for reforms in 2ndia E many since long before he was born' C0'g people like Sharad Aoshi who organised the worldNs largest farmerNs movement, etc'D

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# ' Suggestions for Arvind

# '# Arvind 8ejriwal should start understanding economics instead of focusing on corruption cases
A8Ns pointless attack on this or that politician must end' (hey are A>> corrupt' (hat is an 0SS0-(2A> reLuirement of politics in 2ndia' %e needs to understand the 1A<S0S of this corruption CsocialismD' >et me cite from 3/-) =i! versus +mall 2 want to change the entire 2ndian governance system and make it the worlds greatest, ever' (hat is my goal' 3ut surely thats a ridiculous goal to have for a mere individualI 2 must surely have the common sense to realiFe that this idea of changing the whole system is silly' People have therefore asked me) HShouldnt we all do the right thing in our lives, do our little bit well, do our dutyS and the rest will take care of itself+ .hy should we think so big when we have so many small things to attend to in our daily lives+ .ell, this is itI 2m stopping my banter now, as our journey of discovery has now begun in earnest' 2 am now going to become all worked up and red9faced while 2 try to demonstrate to you why, at times, big things must take precedence over the small ones' 3ut just before 2 do that, let me tell you a little bit about myself, for that will also tell you why 2 am so disenchanted' 6y formative beliefs were made through readings in philosophy during school days in the early #BG"s' (hat led me to rationalism and the scientific attitude as the primary means of inLuiring into the truth' 2 was very young at that time, but 2 concluded that the behaviour of 2ndira ?andhi and Sanjay ?andhi during the early #BG"s wasnt what we should eOpect from our leaders' 2 wasnt into things like socialism and capitalism, but 2 knew their behaviour wasnt right' On observing the state of the nation preceding the 0mergency in #BG!, 2 made a paintingTiU to depict my sense of concern with continuing poverty in 2ndia despite the ?aribi %atao slogan' 2 was not convinced about the merits of the family planning programme either which led to incursions into peoples personal lives by Sanjay ?andhi' 2n #BG@, after passing out from school, 2 decided to serve 2ndia through the civil service, to which 2 was recruited in #B: ' <nhappy with hordes of officials around me who were corrupt in many ways and also misappropriated money meant for the poor, 2 developed systems of administration to minimiFe their opportunities of corruption and diligently
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investigated the records of projects to confirm that things were being done in the correct manner' 2 Htrapped individual corrupt officers wherever possible' 2 caught Cand got jailedD one officer in Dhubri district and a Hrevenue assistant in 3arpeta district for taking bribes' Similarly 2 pursued cases of corruption against 2nspectors of Schools while 2 was Secretary in the 0ducation Department of Assam' 3ut in all these cases, and in many others too numerous to mention that 2 came across in my later roles such as Assams State 0nLuiry Officer, corrupt officials E even those caught taking bribes red9handed E were Luickly reinstated by their corrupt senior officers at the behest of corrupt political bosses or released by corrupt courts' 2 later also spent a lot of my energy in trying to prevent corrupt 6inisters from misusing public funds' 3ut in each case they triumphed by replacing me with a more malleable officer, or by otherwise by9passing me' 2n the meantime, 2 also discovered that the poverty alleviation and education policies in place in 2ndia were not delivering their intended results at all' 2 found subseLuently, upon reflection, and after considering eOtensive academic literature as part of my studies in Australia and <SA, that our policies were bad policies to begin with' (hey could never have succeeded' 6y reflections were not biased by working in, say, badly governed states alone' 2 have worked in three states) %aryana, Assam and 6eghalaya and travelled eOtensively to other states, and the same things happen everywhere' And at the -ational Academy of Administration, where 2 have taught for a while, one gets an overview of administration from all parts of the country' -othing 2 had concluded was repudiated by eOperiences in any part of 2ndia' 2 was confident that my conclusions were valid and well9founded' (hey applied to the entire country' Anyway, after #! years of doing Hsmall things on a daily basis, 2 finally had enough of it' 6y analysis showed that the problem was clearly systemic' 2 had to stop wasting my time with individual corrupt officers and 6inisters who are found below every stone in 2ndia' (he corruption was being fuelled by ideology which had led to significant misallocation of resources and systemic misgovernance' (his fuel had to be choked off, else the fires of corruption would rage endlessly across the country for ever, no matter how many of them 2 tried to put out' 2 hope youll agree that there is no point in fighting a fire while someone is pouring petrol all over it from behind' (he smart thing is to shut the petrol off, first' A doctor doesnt waste time on fiOing each boil or rash separately, but focuses on analysing just one of them through the microscope to find the cause of all of them' (hen he treats the underlying factors and banishes the disease' 8illing one mosLuito at a time wont fiO the problem of malaria' (he swamp has to be drained' TiU (hat painting is reproduced on the internet at Thttp)**www'sanjeev'sabhlokcity'com*indira9#BG!9small'jpgU'

8<

# '

0conomics lesson J# for Arvind 8ejriwal E an economics illiterate


A few days ago 2 clarified to 2ndia in a public forum C3usiness StandardD that Arvind Kejriwal is an economics illiterate. 3ut Arvind is also thick9headed' %e has studiously refused to engage with me to date, despite many attempts not just from me but from many of his well9wishers' Someone the other day suggested that 2 debate with Arvind publicly' 3ut first let me teach him a few things' 2f he refuses to learn, then 2Nll offer to debate him' /or 2 will vigorously fight anyattempts to take 2ndia even deeper into the death trap called socialism' I$ve always said I$m appy to teac Arvind0 w o is ot erwise a !ood and onest man >I *EEG+E to teac *a ul ?and i or any member of :O**G-9 :on!ressF=I- suc as ,odi@. >et me publish some lessons for Arvind Cother socialists like 3AP*1ongress could benefit but theyNll -0M0= get my personal services as a teacherD' 2Nve posted this lesson on /acebook, and also posting it here for the record' ;ou can download the slideshow ere' C1lick the images for larger and clearer imagesD

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# '$ 0conomics lesson J for Arvind 8ejriwal E an economics illiterate


2Nm just posting a further four slides at the moment' (hey cover key aspects of economics' 2 hope Arvind will read and ask Luestions, if he has any' 2Nve started an email conversation with him yesterday Cnot my first to him, but the fist he responded toD, but I need to see real action and real curiosity for *EA. *EEO*,+ in India. 2 will oppose socialism tooth and nail, and if Arvind is unwilling to learn about key economics principles, then we must end up on opposite sides of the political fence'

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3ut 2Nm hopeful that Arvind will sooner or later get the point' %e is intelligent' And he is honest' (hatNs a very good start' -ow all he need is to learn 3AS21 economics' 2Nm happy to take his Luestions either here, via email or by phone' (he slides'

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And of course he must watch this)

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# '7 2ndias 6OS( /OO>2S% man on the topic of corruption) Arvind 8ejriwal
2 was wondering who is more foolish on this topic) 8aushik 3asu, or Arvind 8ejriwal' 2Nve concluded that 8aushik 3asu has at least SO60 1%A-10 of being right E once in !" years' =ut Arvind Kejriwal as KE*O c ance of bein! ri! t on t e topic of corruption0 even once in 1<<< years. 2 am amaFed that QeducatedQ people have bought in so eagerly into the worldNs most useless agenda against corruption) aD >okpal bD Pay 6Ps =s' !,""" per month Cat current ratesD cD 1ontinue with the governmentNs eOisting role in things like education Cjust make it decentralised E whatever that meansD' I award t e pri)e for ?*EA9E+9 I?NO*AN:E on t e topic of corruption to Arvind Kejriwal. (o cleanse his mind Cif he is willingD he can read this simple summary of : ana"ya$s +O-'I+9I:A9E( AN( =*I..IAN9 views on corruption and how to eliminate it' And if he is interested, he can follow up by reading 3/-' 2Nve personally suggested that to him, and am happy to eOplain'

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3eing honest is S26P>; NO9 A sufficient condition for doing well for the country' (hatNs a bare minimum' (hen comes knowledge' Deep knowledge' 1hanakya had it' 2 donNt see A-;O-0 on 2ndiaNs political stage today who has anywhere close his depth of knowledge' Arvind Kejriwal$s party$s promises (his is what Arvind is promising) -eople will decide t e price of essential commodities. =ight to =eject and =ight to =ecall' 0veryone will be provided with good education and good healthcare services' /armers will be !iven good price for their produce' I s udder at India$s fate s ould Arvind$s A!overnmentA !et elected. Arvind, 2 reLuest you to S(OP your blind plunge into politics without first understanding the 3AS21S of good policy' ;ou are a good man but you are 'O-E.E++./ confused' ;ou will totally ruin 2ndia' <nless you stop and think' +top t is madness. Addendum (here is still a chance for Arvind to reform, but 2 have a feeling heNs D0>230=A(0>; not interested in engaging with me' A lot of his wellwishers have personally asked him to contact me, to read my book' %e has stayed away' %e doesnNt want to be told that he is D=AS(21A>>; .=O-?I 2f he continues down this path 2 will have no option but to declare him one more public enemy of 2ndia, along with 1ongress and 3AP'

# '! .hy Shantanu 3hagwat is #"" times better than Arvind 8ejriwal
/or those who are smitten by the half9baked socialist Arvind 8ejriwal Cwho simply refuses to listen to any sensible ideaD, here is a leader who is #"" times better' Shantanu, in this video, is eOplaining why A.. !overnment sc ools and colle!es in India should be privatised' 2Nve, of course, outlined this in great detail in BFN'

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2Nm also attaching a little QslideQ 2 had prepared yesterday for /acebook'

# '@ (he 2A1 chases after shadows while the causes of corruption are left (O(A>>; untouched
2Nm reproducing below an important article publis ed last wee" by t e .iberty Institute' Please read this carefully if you are S0=2O<S about elimination of corruption' )f course, if you are only interested in drama then enjoy the show being put up by Anna %aFare talkies' 2 must say that this man is turning out to be Luite a savvy politician, having smashed the <PANs resolve into a rubber ball that bounces from one end to the other each day' 1learly this government is S<P0=92-1O6P0(0-(, with no capacity to think straight or to act straight' -ote that if %aFare was contesting elections, 2Nd understand his strategies' 3ut he claims to be interested in removing corruption' (hat doesn$t add up 9 for he is chasing after shadows' On the other hand, while %aFare so successfully chases after shadows CID, 2Nm offering a D0AD S0=2O<S *E,E(/ for corruption and a way to dramatically increasing 2ndiaNs prosperity' =ut t e solution I offer is muc arder. And few0 it seems0 are capable of understandin! it0 or risin! to t e occasion' .ell, do read 3arunNs and 6ohitNs views below' Mery well researched piece) 1hasing 3lack 6oney) 2n search of red herrings 3arun 6itra and 6ohit Satyanand 9uesday0 Au!ust 160 2<11

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0n the past fe months, the debate over black money and corruption has been raging across the country$ +ome social activists and the government have been at loggerheads over the scope and structure of a ne anti! corruption authority being proposed$ *here have been claims ranging from tens of billions of dollars to over a trillion dollar, money that may have been illegally acIuired or ealth that evaded taxation$ But the issue of corruption is not (ust about policing, but should be about about policies that help generate black money in the first place$ 5he current focus on the :ok Pal$ as a super cop$ is only diverting attention from the real roots of corruption, rite Barun 5itra and 5ohit +atyanand$ 5his is a discussion paper from the :iberty Institute$ 4ew /elhi. omments are welcome. 2n the past few months, the black money debate has also been stoked by some citiFens groups, and even by a popular yoga teacher' (he activists and the government have been at loggerheads over the scope and structure of a new anti9corruption authority being proposed' (here have been claims ranging from tens of billions of dollars to over a trillion dollar, money that may have been illegally acLuired or wealth that evaded taOation, and deposited in banks invarious taO heavens' One side is accusing the government of being insensitive to the popular concerns over widespread corruption' (he politicians are accusing the activists of seeking to denigrate parliamentary democratic procedures' 9 e 24B our news media0 as usual0 is sto"in! t e fire in searc of 9*-s. % at is !ettin! lost is t e fact t at corruption is t e conseCuence of t e distortions in t e normal economic functionin! caused by le!al and re!ulatory interventions. (he resultant mismatch between supply and demand for goods and services are then attempted to be mitigated through the discretionary powers in the hands of various government agencies and ministers' (his opens the door for patronage for a considerations, that is corruption' A study by the ?lobal /inancial 2ntegrity estimated black money stashed abroad at ]7@ billion' On the other hand, the Swiss -ational 3ank CS-3D has estimated that the total deposits of 2ndian individuals and companies with allthe Swiss banks put together stood at about ] '! billion C=s ##,#"" croreD at the end of "#"' And all of that cant be illegal' (he government has been reiterating its intent to bring the black moneyhome, even as easily eOcited peopleNs groups say such money should be declared a national asset' (he Supreme 1ourt, taking note of the matter, has asked forthe appointment of a Special 2nvestigating (eam CS2(D, to bring black money back' (he government has offered to strengthen the money laundering law' Dual (aO Avoidance (reaties are being negotiated with over :"countries, including SwitFerland, in an attempt to share information about financial

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transactions and taOation' At home, the government has also proposed amendments to the 3enami (ransactionsCProhibitionD Act #B:: to make it easier to seiFe benami property, auction them and pass on the proceeds to States, where the property is located, for development activities' 2n the past two years, the 2ndian income taO department had collected some G,G"" pieces of information from treaty countries on payments received by 2ndian citiFens in various countries and on bank accounts' 4.e have made more than #G! reLuests to our treaty partners in cases of specific taOpayers in the last financial year,5 claimed 6r Pranab 6ukherjee, 2ndias /inance 6inister recently' A slew of initiatives are also being proposed to tackle corruption' (he >ok Pal 3ill, pending for over two decades, has been introduced to inLuire and investigate corruption among political leaders and senior bureaucracy, at the national level' Another new law, the Audicial Accountability bill is on the anvil to check corruption in the higher echelons of the judiciary' And to encourage people to eOpose instances of corruption, a law to protect whistleblower is under discussion' A more structured public grievance redressal mechanism is also being proposed' .hile the list measures may be impressive, and the intent of the political and civic leaders may be genuine, we believe t ese developments are naPve at best. 'owever0 far worse is t e prospect t at t e plet ora of initiatives just turn out to be red errin!s to detract from t e underlyin! problems. 9 e problem corruption and blac" money ori!inate in bad public policy0 rat er t an poor policin!. >et us begin with trying to define black money, generally held to be income on which taOes are not paid' .e believe there are $ constituents of black money'

legally earned income on which taOes have not been paid illegally earned funds, such as bribes, and contracts whose face value does not reflect the transactionvalue, earnings from criminal activities As far as the first category is concerned, this is primarily the taO collectorNs problem, and strengthening the mechanisms we already have in place is an on9going eOercise' As more and more of our economy moves into the formal sector, and data collection systems are strengthened and cross9linked, this will be less and less of an issue' According to Dr Surjit S' 3halla, a prominent economist, and who heads an investment company, the total amount of income taO evaded annually could be in the range of =s #"",""" crore Ci'e', =s#,trillion or <SD billionD, or about #'!W of 2ndias ?DP' A portion of itmay find its way to foreign taO heavens'

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2n the financial year "#"9## CApril to 6archD, the official estimate of income taO collected is =s 77@,""" crore, which is around 7@ per cent of the revenue for the <nion ?overnment treasury and @'#$ per cent of the ?DP' As far as the third category is concerned, this is primarily the remit of criminals and police agencies' (he money being generated from such activity is not the most serious of the problems it creates and in any case fighting crime is the primary task of any government' 3ut bad laws criminalise what should be legitimate economic activity' /or instance, 2ndia restricted jewellery to #7 carat, with the infamous ?old 1ontrol Order of #B@ , and then banned gold imports' -ot surprisingly, for a people who consume the highest volume of gold in the world, the prohibition made gold smuggling a very lucrative proposition in 2ndia' 2n the #B:"s, less than 7 tons of gold were being mined domestically, but it is estimated that about #!" tons were being smuggled in each year to meet the demand' 2nevitably, gold smuggling turned into a major source of income generation for gangsters which subseLuently diversified into becoming guns forhire, international terrorists, and drug runners, corrupting almost everyinstitution of the state' 2n addition, this opportunity acted as a catalyst for the money laundering phenomenon, knows as the %awala' 2t was only in #BB , that the restrictions on imports of gold were lifted, and smuggling has mostly evaporated' >et us focus, then, on the second category' 3egin with contracts where there is a divergence between the real value of the transaction, and that stated on paper' Ask any 2ndian, and they will tell you that the largest category of such transactions is real estate' In t e (el i and t e surroundin! re!ion0 our estimate is t at t e avera!e property deal reflects only 5<Q of t e value on paper Cin the case of Nfarm9 housesN, less than !W of the property value is typically declaredS for condominiums in the suburbs, it may be as much as :"W' A #""W NwhiteN money deal in property transactional is a rarity'D Over the last ! years, property and real estate have generated almost !W of the ?DP of this region, one of the nationNs most prosperous' (his means that, this single area of untruth leads to # '!W of regional ?DP going underground' -ationally, the most conservative estimate is that property transactions generate black money worth about # to W of 2ndias ?DP, annually' /rom a policy point of view, it becomes important to ask why real estate deals generate so much black money' .e believe that the primary cause is eOtremely high government fees for registration of land sale, between ! and #"W of the value of the transaction' (he desire to evade this levy is the starting point of evasion' Over time, real estate has become the parking lot for blackmoney of all sorts) this includes such money generated from sale of property, a self9reinforcing cycleS as well as speed money and slush funds, garnered from all manner of favours granted by powerful administrators and politicians'

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Audging by the .orld 3ankNs 4Doing 3usiness =eport "#"5, 2ndia ranks #$7th among #:$ countries' 2ndia is one of the most trouble some places for dealing with public authorities' Such frictions inevitably leads to the payment of Nspeed moneyN, whether for the tiniest of transactions, such as a driving licence or hawkerNs permitS or for major resources over which politicians have control, such as awarding telecom spectrum, mining and eOploration rights, or large infrastructure contracts' (he higher transaction cost of carrying out normal economic activity in 2ndia, not only adds to inefficiency, but also raises the cost of doing business' (his also eOplains, at least partly, the fact that anything between ! to 7"W of 2ndian economic activity takes place in the informal sector, mostly under the official radar' :orruption is not roc"et science0 and India is not an exception. ?lobally, countries that rigidly regulate their economies, and restrict the economic freedom enjoyed by their people, also tend to be also among the more corrupt ones, and generally poorer' .hile 2ndia has improved its standing in the 0conomic /reedom of the .orld 2ndeO, over the past two decades, its has not changed fast enough, and the low rank on the Doing 3usiness =eport indicate that the changes have not been deep enough to make substantive impact on corruption' ?rap 1& Difficult business environment breeds corruption Cclick for bigger imageD

?rap 2& ?reater economic freedom lowers levels of corruption Cclick for bigger imageD

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.hether in real estate, or in administrative corruption, it is worth noting that the illicit money is generated in 2ndia, not overseas Clarge defence deals would be the only major eOceptionD' Some of the funds generated in 2ndia are definitely NeOportedN to keep them out of view, but much of this is brought back, through a variety of routes, including the stock markets' (he money held abroad at any point in time is only funds in transit E a flow, rather than a stock' >ooking to put a tag on such funds is like trying to catch the wind in a basketI If t e intent was to actually cut down t e amount of blac" money bein! !enerated0 t e answer would lie in a slew of reforms in India. 9o name a few0 t ese would include&

real estate re!istration fees t at are reasonable # less t an 1QR or flat fees per unit area policy framewor" t at reduces t e discretionary aut ority of administrators and politicians (ransparency and economic freedom, however, may not suit a political class that has grown used to enjoying the spoils of the discretionary power' Eocusin! on money eld abroad is $exportin!$ t e problem0 passin! t e blame to an $immoral$ ban"in! system in +wit)erland or .iec tenstein0 rat er t an avin! a public debate on t e ori!ins of blac" money' 0ven if the funds held in SwitFerland were a substantial percentage ofthe black money in circulation E which we doubt E the long9standing discussion of the issue, and governmentNs repeated assertion that it will tackle this

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would have given any half9intelligent account9holder ample time to relocate his funds to discreet banks in any one of half a doFen locations in the world, not to mention laundering them through the convenient taO arrangements with 6auritius' (here are already Luite a few eOisting organisations and institutions that are supposed to be investigating black money, taO evasion, money laundering and other crimes' (here are a number of organisations involved in eOposing financial misdemeanours and wastages, and fighting crime andcorruption, among them the 1omptroller and Auditor ?eneral of 2ndia, the 0nforcement Directorate, the Directorate of =evenue 2ntelligence, the 1entral Migilance 1ommission, and the 1entral 3ureau of 2nvestigation' Also there are many eOisting laws, such as the provisions of the 2ndian Penal 1ode, the Prevention of 1orruption Act, the /oreign 0Ochange 6anagement Act, 3enami (ransactions Act, among others, all aimed at curbing black money and corruption' /inally, there are the Supreme 1ourt and %igh 1ourts, which often decide to monitor the progress of investigation in important corruption cases' ;et, there are very few successful prosecutions and convictions' ?iven such a poor track record, w y do we expect a new antiBcorruption institution or a more draconian law to ave any dramatic success1 One wonders if the 2ndian political leadership is really serious about tackling corruption and taO evasion at its roots' Or is the posturing only an attempt to defuse the political tension currently caused by the likes of yoga guru =amdev or civic activist Anna %aFare' (he tragedy, however, is that many concerned citiFens while sincerely campaigning against corruption, have only further legitimised the search for red herrings, by failing to focus on the root of the problem E the policy framework that breeds corruption and generates black money' One can only hope that even if the focus is misguided at the moment, the greater public churning will finally turn the spotlight on the real reasons for generation of black money in 2ndia' Please send your comments and criticism to

.iberty Institute 197*: Sahyadri,Plot!, Sector # , Dwarka, -ew Delhi ##""G:' 2ndia 0mail)info&libertyinstitute'org'in .ebsites) www'2nDefenceof>iberty'org^ www'0mpowering2ndia'org *his article 23, 4722$ as published in the :iberty Institute on *uesday, August

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Aut ors & 6r 3arun 6itra is the director of >iberty 2nstitute, an independent public policy think tank in -ew Delhi' 6r 6ohit Satyanand is a management consultant, investor, columnist, and is the 1hairman of the board of >iberty 2nstitute'

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