Tepid Beer

Here is an example of how corruption starts. Anti corruption sentiments are high in India these days , as any Indian reader would know.  This blogger, trying to be apolitical, steers clear of any comment on the movement launched by Anna Hazare. But an instance of how a warped economic policy breeds corruption would be entirely appropriate for this blog.

The state of Andhra Pradesh is the largest beer market in India.This would not be surprising to readers with some knowledge of the state. Its is a large state with lots of people. It is also "blessed" with one of the hottest climes in the country. Naturally a cold beer would be very welcomed by many.

Unfortunately the neta babu raj is very much alive and kicking in the beer industry in Andhra Pradesh. The government decides what brands of beer you can buy, from whom and at what price. A very worthy organisation called the Andhra Pradesh Beverages Corporation Ltd  exists staffed by Ramamrithams of all shapes and hues. They tender for all the beer to be sold in the state and decide how much is to be bought from each company.

Some years back United Breweries (Vijay Mallya's company) and SAB Miller (a global giant) virtually sold all of the beer in the state. A year back government policy changed stating that they would buy beer from companies in the proportion of their national market share (only a Ramamritham can think like this). This massacred SAB Miller and benefited UB hugely - ( for sake of absolute clarity let me categorically state that I am not implying that UB had any say in this decision). Recently, the policy got reversed, benefiting SAB Miller (ditto clarification regarding any influence of SAB Miller in this decision)

What is the government doing deciding whose beer you should drink. Its none of its business. Hasn't it heard of consumer preference, supply and demand, etc etc. Why is beer any different from the hundreds of products that are bought and sold daily. There is some mistaken belief that the government should protect its citizens from the harmful effects of liquor consumption (??) and that is best achieved by controlling it. Quite apart from it being nonsensical thinking, government control is the surest way to drive bootlegging underground and spark the all too frequent illicit liquor tragedy. 

There is every temptation in an environment like this for normal commercial decisions to be taken on criteria other than economic. Why leave this window for corruption? The state of Andhra Pradesh has many issues confronting it. It needs to address so many problems. Production, distribution and pricing of beer is not one of them. Governments should get out of normal commercial activity. Let the market decide.

Corruption is a many headed hydra. Effective policing is one aspect of the solution and can be a good deterrent. Eliminating an environment that breeds corruption is also equally important.

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Wordless Sunday

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Never mind chaps, let's move on

The true test of character is in times of adversity. For an Indian sports fan, it has been adversity with a capital A, the past two weeks. India has suffered a heavy defeat , actually a pasting, against England. A series , that was billed as the clash between the top two teams in the world, turned out embarrassingly one sided. We can take defeat, but its rather hard to swallow being thumped.

These things happen in sport. India is not as bad a team as it appears. And England is not as good a team as it would like to believe.Nothing went right for India and everything went right for England. England were certainly the better team and deserved to win. But the crushing nature of victory was unexpected, to say the least.

It is in the natural order of things that sportsmen are defied when they win and are torn apart when they lose. The Indian team has already started to take a hiding and will no doubt be insulted with every possible epithet.  Somebody's house will, no doubt, be stoned. Pundits, and there are many, will decry the mercenary attitude of the players. IPL has spoilt them. They don't care for their country anymore. The team is ageing and everybody above 30 must be sacked. Blah Blah Blah.

It's in times of adversity that character shows. Character of all the people concerned. The fan, to take it philosophically and to stand behind the team. Resist the temptation to kick the guy who has fallen, for that is all too easy. It takes character to look for flaws to patch up and further improve when you are winning handsomely. And to put an arm around the shoulder and say better luck next time, when the chips are down. 

The character of the players as well. To them this has been a ruder shock, they themselves would have never expected. After all they won the World Cup just a few months ago. And these are roughly the same lot who have performed heroics after heroics for many a year. This must be the most depressing moment of all. But this is the time to let true character show. Pick yourself up by the bootstraps. There is one more test to go. At the Oval, where India has traditionally performed well. Put the past three tests behind you. You have nothing to lose now. Stand up tall and be counted.  Play freely without the burden of the crushing defeat. And exit the disastrous series on a  more positive note.

Its also in moments of great victory that the character of the victors are shown too. To be graceful in victory.  They have won a resounding and thoroughly deserved victory. They have been on a roll in test cricket at least over the past 2 years. They are entitled to gloat. But they will stand even taller if they showed some of that noble British quality of restraint and understatement..English cricketers, and sports writers, have not exactly distinguished themselves with grace in the past. Let us see if this time it will be different.

As in cricket, so in life. If it's a moment of great victory for you, you deserve every cheer. But if it's a moment when life has dealt you a rough hand, you deserve a warm hug.

And so to the Indian team. Never mind old chaps. Let's move on. You guys are still our heroes. Tomorrow is another day.

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Stop watching the stock market ticker

As stock markets fell on Monday there was the predictable response from governments. Take for example the Indian Finance Minister. He says "we are prepared to address any concern that may arise on account of the present situation".  He should do no such thing. Stock markets should not drive government policy.

Have you noticed that the bleating and braying is all one sided. When markets are rising, nobody wants the government within one million miles of their trying to fill their pockets as fast as possible. When markets are falling , governments should come and "help them". Nonsense. Just as stock markets fell, you see the price of gold skyrocketing. I am yet to hear anybody express concern on where that market is heading.

For that matter, why be only concerned about stock markets ? Why not debt markets. Or, as above, gold markets. Or platinum markets. Or whatever.

Governments should simply adopt the right economic policy for the long term. Of course, they have to react to economic events, but that would be in the form of reacting to say a recession or overheating. Not to stock markets falling.  Stock markets, in the short term, are largely in the hands of speculators. More than 95% of transactions are speculative in nature. They perform a useful economic function - that of providing liquidity. But they need no support and certainly not an ounce of the time of the Finance Minister. If they mint money gambling, good luck to them. If they lose their shirts, well tough luck.

India is not in a bad position in the current situation. Unlike China, its not so dependant on exports and therefore the impact of a possible global recession will be lesser. India's growth will continue to be strong. The falling oil prices is a huge boon ; this can be the solution to controlling inflation, the most serious problem facing the nation today. Speculative inflows may dry up, but investment is not a problem - the country remains one of the most attractive markets in the world. The demographic dividend continues - India has a young population and not a dwindling supply of productive individuals. The Finance Minister has many things on his plate. Controlling corruption. Eliminating wastes and handouts. Restraining the burgeoning national debt. Continuing with reform and remove the current malaise of masterly inactivity. He doesn't need to watch the Sensex. When the shrill, loud, breathless "journalist" from CNBC asks him about it, the correct response should be - Sensex ? What Sensex ?

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Just a chuckle

This blogger suffers from an acute affliction of verbiage. Where 7 words will do, 70 are used. This Sunday, we will therefore take our cue from another, fellow afflicted , far more illustrious and important. I shall manfully strive to follow his example.

Watch this.

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Watch out Bollywood

Which country produces the largest number of films every year ? The answer is easy - India, some 1300 films in all. Which country is the second largest producer of films ? You might scratch your head or have guessed Hollywood. Wrong. The reality is Nigeria. Watch out Bollywood; Nollywood is all set to overtake you.

The Nigerian film industry is apparently thriving and booming. Its the film capital for all of Africa. Some 1000 films are apparently made each year. Unlike the more traditional format of movie halls, Nigerian films are mostly released on videos - there's hardly much of the theatre format in Nigeria and almost all of Africa. Each video costs some US$ 2 or so - cheap enough to be affordable and not worth counterfeiting. The distribution channel is therefore by retail stores for home viewing. No doubt, cheap video parlours would have sprung up for those unable to own a video player.

The industry is still small - Only some $250m or so. But with enormous potential. Africa is under served by entertainment. Movies are a great way to bring some cheer to  people - as India has so amply demonstrated. A peculiarly African solution has emerged. A distribution system and a pricing methodology that suits the market. Videos rather than hall screenings. 

India is virtually saturated by movies. I read that an astounding 3.2 bn cinema admissions happen in a year in India. That's an average viewing of 3 films per year per person. Amazing. I know that such a number is laughably low for movie buffs such as  Zeno, but you must also count that there are worthies like me with a viewing habit of precisely zero. How much more can India grow - not much. Whereas in Africa, the market is still virgin.

Gils has some competition here. At this site you can read reviews of Nollywood movies. At this site you can even watch them. They seem to have a tendency to raunchiness in their titles - "Obama Babes" goes a movie title. "Ladies Gang" goes another. Before you get any ideas, these are not that sort of a movie - they seem to be more of the serials type of stuff that are inflicted on the unsuspecting public world over.

I might be even tempted to watch one of them and write a review !!!!!

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Misuse of a sacred right

The right to free speech is a right whose value you only appreciate when you don't have it. This blogger has experienced what it is not to have that right - where every conceivable & useful global site on the internet is blocked, where any non state controlled TV channel is simply unavailable and where the press is just plain awful. As it would be for any blogger, the right is a precious one. There is the usual saying, I don't like what you say, but I'll defend your right to say it. But is the right to free speech as absolute as it is thought to be. Should it be ?

No right is absolute. Even in America, where the First Amendment protects free speech,  Jutice Holmes Jr in Schenk vs United States observed that shouting Fire falsely in a crowded theatre will not be protected by the First Amendment. In many European countries, denial of the holocaust is not permitted. Recently incitement to religious hatred has also been brought under the ambit of no nos. In India, writings which are seen as offensive to any community and are likely to cause violence are banned.

In the United States, by and large anything goes. And the right is jealously protected, as it should be. In the good old days, you could stand on a soap box and rant for all you want. Or you could find your way into a newspaper. Your audience was limited. But today, any person has an instantaneous global audience. In such a world, does anything go ? Should anything go ?

What about the extremism heard on radio and read in books in the US and the often thinly veiled incitement to violence. What about some notorious imams, who use the precher's pulpit in many parts of the world to declare jihad. What about the deliberate provocation by crazy outfits like the Shiv Sena in India who threaten violence against anybody it doesn't like ? Should their rights of free speech be curtailed.

I ask this, because I saw a video of the sort of right wing extremism that seems to be on the increase in the US. Watch this video (its 20 odd minutes long, but its highly disturbing, to say the least) - my attention to this video was drawn by the blog The Peking Duck. Some deranged idiot takes a leaf out of such rantings and goes and causes serious damage - its not OK to say that it was purely the madman's fault. Something like this has indeed happened in that awful incident in Norway. That crazy seems to have been inspired, amongst other things, by extremist bloggers such as Pam Geller.

We want to wage war against the madrassas that preach hatred and violence. I am not sure that the talk radio extremists are not dangerously close to treading on similar territory. 

The right to free speech is a sacred right. It should not be misused. When it is misused, the remedy is not a government action curtailing the right. But equally, society cannot stand by and watch the right misused. Societies world over have a moral duty to tame the extremism that seems to be increasing in the media. We should not sit quietly and allow our precious right to be misused by a few. Remember, words do kill.

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