On the road to Liberty

[A shorter version of this article titled “Who is a foreigner?” was published in The Economic Times, on 22 May 1999.] Tagore's India "India is that sacred land of cultural union which never sent anyone back", the Prime Minister quoted this line from Tagore, live on national television recently, on the occasion of the release of a special CD containing recitals and songs by the poet himself. It is ironic that the same Prime Minister also wants a "national debate" on whether any foreign-born person should be allowed to hold highest political offices in the land. One does not know whether the PM has lately read that poem of Tagore from Gitanjali (1910). Because just prior to the lines which the PM quoted, the poet says "hethai arya, hetha anarya, hethai dravir o chiin, shok, hun dal, pathan o moghoul, ek dehe holo leen" . That is the Indian civilisation has successfully assimilated the aryans, the non-aryans, the dravidians, the Chinese, the shaks, the ...

The market is the natural ally of the environment. Environmental resources, like other economic resources can be most efficiently allocated if these are brought under the discipline of the marketplace. It is ironic, therefore, that at a time when the economy is being liberalised, rather than creating a market for environmental resources, new restrictions are being imposed on the economy in the name of protecting the environment. Environmental quality is like a value-added product that becomes economically affordable and technologically viable with economic growth. It is no paradox therefore that the environment is much cleaner and safer in industrially developed countries that adopted a more market-friendly approach, than in centrally planned economies. Clearly, it is policy that is responsible for continued environmental resource depletion or pollution. Let us take a closer look at some of the policies that have had an impact on our environment. According to the WHO, much more serious...

My article titled "The Legacy of Hayek" was published in The Economic Times, 8 May 1999. Friedrich A. von Hayek, the philosopher of freedom and Nobel laureate economist, was born on 8 May, 1899 in Vienna, one hundred years ago. The man, who went on to become one of the greatest champions of liberty, however, had begun his life as a young soldier in the Austro-Hungarian Empire, and was sent to the Italian front in 1917. An academic, whose “controversial ideas” were eventually recognised by the Nobel committee in 1974, Hayek was also an activist who was among the founders of the Mont Pelerin Society in 1948, an organisation dedicated to pursue the intellectual battle against all forms of authoritarianism and tyranny. While we in India were fascinated by government planning, a quarter century ago, the Nobel Academy held that “von Hayek’s analysis of the functional efficiency of different economic systems is one of his most significant contributions to economic research in the br...

My article titled "Hayek's Road to Freedom-A Centenary that may hold the Key to the Next Millennium-A Tribute to Friedrich A. von Hayek on his Birth Centenary" was published on May 8, 1999. Introduction This month marks the birth centenary of Friedrich A. von Hayek, one of the greatest philosopher of freedom and Nobel laureate economist. While we in India were fascinated by government planning, a quarter century ago in 1974, the Nobel Academy held that "von Hayek's analysis of the functional efficiency of different economic systems is one of his most significant contributions to economic research in the broader sense. His conclusion is that only by far-reaching decentralization in a market system with competition and free price-fixing is it possible to make full use of knowledge and information." Impact of Hayek Today, a wide range of people has acknowledged his contribution all over the world. From philosophers like Karl Popper, Robert Nozick and Michael Fo...

My article titled "Who is an Indian?" appeared in the newsletter of Liberty Institute in May 1999. It is ironic that the Prime Minister has sparked off a “national debate” on whether any foreign-born person should be allowed to hold the highest political offices in the land, because only a few weeks earlier, he had quoted from Tagore in a programme broadcast live on national TV–"milibey aar milabey; jaabey na pheerey... Aiyee bharoter mahamanober sagaro teere"– From these sacred shores of cultural union, India has not sent any one back. More so since, in the lines preceding those that the Prime Minister quoted, the poet says the Indian civilisation has successfully assimilated the Aryans, the non-Aryans, the Dravidians, the Chinese, the Shakas, the Huns, the Pathans, the Moghuls. The question of the “foreign born” was settled by the members of the Constituent Assembly after substantive deliberations fifty years ago. It is strange that the question of nationality a...

My article titled Conquest Without Victims-Another look at Kashmir appeared in the newsletter of Liberty Institute, May 1999. War clouds are again gathering over Kashmir. While the political divide is obvious, effective steps towards open trade and travel in Kashmir and in South Asia, would go a long way in building a market based relationship. And this, in turn, could help ameliorate the political pressures. The specter of balkanisation on race, ethnic, religious or linguistic grounds around the world has generated the realisation that no society is immune to this pressure and “ethnic cleansing” is a completely unacceptable solution. This century is replete with instances of horrendous crimes committed in the name of defending one's community. For instance, Pakistan was created on the basis of a particular religious affinity, which claimed to be irreconcilably different from other major religions in the sub-continent. However, within two decades, it was clear that Pakistan’s rel...

My article titled "Union Budget 1999-2000: Some unanswered questions" was published in the newsletter of the Liberty Institute in May 1999. The 1999-2000 budget has tried not to tread too hard on any toes. In view of the rollbacks that had to be undertaken last year, this was perhaps inevitable. But by the same token, the budget has left many questions unanswered. Rural development The budget has outlined many measures. But it has failed to deal with two basic questions. First, as a former Prime Minister had noted only 15% of all developmental funds actually reach the target. Merely allocating more funds is not an answer to this structural problem. Secondly, the fundamental cause for this is the abject rural productivity. Rural India continues to support 60-70% of the population while the contribution of agriculture to GDP has fallen from over 70% in 1950 to about half that level today. The lesson to be drawn is that the fundamental way to eliminate poverty in the countrysid...

My article titled "Market is environment friendly" was published in the newsletter of the Liberty Institute in May 1999. The market is not necessarily the enemy of the environment, as is generally made out to be. A competitive market is actually the best friend of the environment. That was the conclusion of the study the Liberty Institute carried out to find out about the lack of enthusiasm for a government scheme introduced in 1991to promote environment friendly products. The Ecomark scheme was initiated in 14 product categories. Standards were set for these products in terms of efficiency, biodegradability, recycle levels, etc. The idea was that if the products met these standards, then they could receive the Ecomark label, and thus, helping consumers to make better decisions. The underlying assumption for such a scheme was that though the consumer wanted products that had less impact on the environment, there was no mechanism to communicate that information to him, which...

My article titled "IPR protects Indian agriculture" was published in the newsletter of the Liberty Institute in May 1999. A lot has been said over the consequences of IPR in agriculture, and in areas where knowledge is said to have been traditionally handed down the generations. However, a proper IPR regime can help protect not only the foreign inventors, but also the domestic players. Following is a summary of the present status of IPR in some of the most prominent instances. TURMERIC In 1993, two American scientists of Indian origin filed a patent for use of turmeric to heal wounds. Initially the specification contained information on the prior knowledge of the various uses of turmeric and it also acknowledged that the pharmaco-kinetics involving the safety toxicity dosage and biological properties of turmeric are well known. It also said the main object of the invention is the use of turmeric powder at the site of injury by topical application and/or oral intake. The othe...

My article titled "IPR promotes knowledge and economic development" was published in the newsletter of the Liberty Institute in May 1999. Over the past couple of years, the debate over Intellectual Property Rights (IPR) has increasingly become quite shrill. However, this seemed to have not enlarged the scope of the debate. The opponents have tried to portray IPR as a sell out to foreign interests, while the supporters of IPR reform keep repeating the necessity of IPR in the era of globalisation. However, the distinct advantages of having a good IPR regime, have rarely been highlighted. IPR was first recognised in England in the 17th Century, just as the industrial revolution was beginning to have an impact. The aim was to protect the interests of the inventor, and thereby encourage the development of newer and better products so that the society benefits as a result. Another critical component of IPR was that once the right was recognised, the new knowledge was open to publi...