IIT Brainwashing-001

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IIT Brainwashing-001

  1. 1. BRAINWASHING SESSION-001 FOR PRIVATE CIRCULATION ONLY Copyright 2011 © by Shivaprasad Srikantia. All Rights Reserved Find out why corruption is good for the Indian Economy !For a complete brainwash, visit www.slideshare.net/IIToons
  2. 2. India MBA Copyright© 2011 by Shivaprasad Srikantia. All rights reserved.LAWS OF BRITISH ERA With corruption, at least some work will getBROUGHT CORRUPTION done in India. Infrastructure projects will get cleared faster when money changes handsINTO INDIA under the table. Without corruption there will be no incentive for the bureaucracy to clear files. Without corruption, no work might getThe British colonists had originally done in this country ! The nation probablyframed repressive laws with the primary needs corruption to achieve a 9 % growth !intention of preventing local capitalists Now, that is ground reality.........from starting new businesses andcompeting directly with industriesin Britain.Before the Industrial Revolution began in England,all regions of the world remained relatively poor atsubsistence levels. The industrial revolution andcolonization made some nations richer.In 1743, a British administrator named Robert Clivehad been deputed overseas by the Britishgovernment to govern and loot India to the best ofhis ability. At that time in history, the Britishadministrators managed to draw world attention byextorting money and starving to death almost anentire village of peasants in the Bengal region ofIndia. Eventually, the conduct of Robert Clive inIndia became very embarrassing to the BritishParliament. Robert Clive, an icon of corruption,began facing severe criticism in British society.Deeply disturbed by the ostracization, Robert Clive Failing to maintain at least 8 %became a recluse and committed suicide. growth could lead to economic problems of the type faced by Greece and Ireland. This is a serious matter ! The British colonists had framed repressive laws with the primary intention of preventing local capitalists from starting new businesses and competing directly with industries in Britain. This 2
  3. 3. India MBA Copyright© 2011 by Shivaprasad Srikantia. All rights reserved.way, the raw materials in India could become more in many Asian nations continue to be controlled byeasily available for import into factories in powerful political forces. Politicians, bureaucrats,Manchester and Sheffield. Furthermore, the British and law enforcement officials form corrupt alliancescolonists had intentionally framed laws that would and make a mockery of democratic principles. Thisencourage bribes and kick backs to British clearly suggests that a major flaw exists in theadministrators. This was a system that would allow structure of management of law and order. A nationrampant corruption to stifle industrialization within might have an excellent legal system in terms of herIndia. judiciary, but a policing force controlled by politicians or wealthy capitalists could weaken lawBritish colonists inspired bureaucratic corruption in enforcement.colonies, as it would prevent rapid industrialization.Today, many of the former colonies continue While India was struggling with the after effects offollowing the framework of British laws that colonization, social lethargy, political mistrust, andencouraged bribes and kick backs to government corruption, South Korea marched ahead with rapidadministrators. Starting a business in a nation that industrialization. Lead by autocratic politicalwas formerly a British colony would require a string leadership, the South Koreans marched away likeof authorizations, clearances, bribes, and kick a military regiment on a cold winter morning. By thebacks. Therefore, India is no exception. early eighties, South Korea was exporting nearly $ 15 billion worth of goods. At one time in economicWhile antiquated import regulations were history, while the Indian democracy managed a perstrangulating the Indian industry, the capita income of $ 250, South Korea had managedChinese government began generously a per capita figure of about $ 6000. This is how theallowing the import of machinery for colonial heritage laws, and indiscipline swayed India away from systematic industrialization. India, with amass production. large number of illiterates and poor peasants, needed time to build a disciplined democracy. She also needed to build a disciplined economy.In India, the British colonists had installed laws thatwould discourage the import of machinery. Thiswas done by the colonist government to stifle local I am not worried so much about themanufacturing industries. However, even after bribes and corruption at the lowerdecolonization, the Indian bureaucracy continued to levels. I am seriously concerned aboutuse the old colonial laws. They continued to prohibit institutionalized corruption that isthe import of machinery. This prevented the Indian swindling tax money. Money collectednation from igniting an industrial revolution. While as Income Tax, Central Excise Tax,antiquated import regulations were strangulating Service Tax, Customs Duty, andthe Indian industry, the Chinese government began Property Tax might be getting swindledgenerously allowing the import of machinery for through mega-crore scams ! Will thismass production. In fact, the Chinese were money be recycled back into theimporting entire manufacturing plants from Europe Indian economy ? Probably not... Theand America. With import of machinery and swindled money may end up in Swissmanufacturing plants, the Chinese were able to set bank accounts, and not directly benefitup gigantic manufacturing bases. While the the local economy !visionary Chinese succeeded in building anexcellent manufacturing hub, the Indians had beenleft behind due to the shortsightedness of theirbureaucracy.The British colonists had also cleverly installed acorrupt system of governance, where Britishpoliticians could control the police force of thecolonized nations. We notice that even after half acentury of independence from the British Empire,the scheme of governing has not changed in thecolonized territories. For instance, the police force 3
  4. 4. India MBA Copyright© 2011 by Shivaprasad Srikantia. All rights reserved. Colonization had a deep psychological impact on the colonized populations. The colonized peopleIn many African and Asian nations, humiliation began to believe that they were the pariahs of thethrough European colonization has trickled world. After colonies were dismantled, political anddown to individual citizens and gradually bureaucratic dishonesty kept the economieseroded their self esteem. In fact, bureaucratic impoverished.apathy, political dishonesty, and corruption inmany of these societies may actually be the In many democratic societies, underworld figuressign of eroded self respect. By the way, and politicians are natural partners. The plain truthfanatical nationalism may also be stemming is that most politicians are not wealthy enough tofrom low self esteem. be able to refuse campaign contributions from underworld sources. This means that organized crime entities become unofficial partner of the local political machinery. Incidentally, crime syndicates have been flourishing in America for several decades, and controlling an economy running into nearly 30 billion dollars. Understandably, a federal government machinery which could be manipulated by powerful politicians were not willing to publicly acknowledge this ! Therefore, any society that chooses democracy automatically chooses a corrupt political system. This publication contains excerpts and extracts from the book titled AmericanToughening laws through a parliamentary Capitalism, Americanomics,process might not have much of an impacton corruption. The Jan Lokpal Bill might not & Multinational Corporationsbe the answer. Instead, civil society as a by Shiv Srikantiawhole has to engage in introspective soulsearching exercises. If citizens of a societyare able to collectively acquire self esteemand self pride, the moral fabric of a nationwould improve. Therefore the efforts shouldbe directed at building a societywith a critical mass of morally upright International paperback edition available from www.amazon.com 4CROYDON BOOKS 4
  5. 5. India MBA Copyright© 2011 by Shivaprasad Srikantia. All rights reserved. indiscipline into the democracy. Sometimes, politicalDISRUPTIVE POLITICS leaders in Asia, Africa, and South America even instigate riots and encourage the destruction of national property and assets. Many political parties in India frequently organize strikes and protest marches to disrupt civilian life. These meddlers actually misuse the freedom of a modern democracy. The local political entities attempt to constantly fight with elected officials and engage in tactics to topple elected governments. They also create an atmosphere of mistrust, commotion, and chaos. Though I am functionally illiterate, I am a nationalist. My objective is to have an adversarial relationship with any political party that is elected into power. That isIn China, democratic freedom is what Indian democracy is all about. Like Gandhiji, I also carry a big stick. But I carryavailable within the four walls of a stick to perpetrate violence.a prison cell. Those who demanddemocracy are escorted away toa prison.The Chinese take a special pride in being wise. Forthem, what provides political direction is actuallyConfucian wisdom handed down through thegenerations. The Chinese retained authoritarianpolitical systems because they intuitively knew thatdisruptive politics was a major trend in third worlddemocracies. The wise Chinese are trying to evolvea composite economic system that blendscommunism, capitalism, autocracy and democracy.With the economy galloping at over 8 percent, theChinese recipe seems to be working quite well.InChina, democratic freedom is available within thefour walls of a prison cell. Those who demanddemocracy are escorted away to a prison.Quite often, political meddlers do not allow electedgovernments to function to their full potential.Perhaps, countries with large masses ofimpoverished and illiterate people need strictpolicing by authoritarian governments. During theearly stages of economic development, they wouldbe better off with authoritarian governments.Otherwise, a developing nation may become abreeding ground for meddlers whose primaryobjective is to disrupt the economic developmentagendas of the elected government. In Africannations, political leaders block essential foodsupplies to starve to death the opposing factions.Political leaders in third world nations often bring 5
  6. 6. India MBA Copyright© 2011 by Shivaprasad Srikantia. All rights reserved.FOUNDING FATHERS THE SECRET BEHINDWITH DIVERGENT VIEWS VOLATILE OIL PRICES Wall Street speculators can now swing the price of crude oil fromFor nearly fifty years, the Indian $ 70 a barrel to $ 140 a barrel !nation tried to court two completelydivergent policies ! Claude Shannon and John Larry Kelly were two street smart mathematicians who had figured outTo begin with, India had the unusual misfortune of formulas for securing high returns in the stockhaving two founding fathers with two divergent markets. While working long hours at the Bellviews. Founding father Mohandas Gandhi wanted Laboratories, John Kelly had evolved a set ofIndia to reject industrialization and remain as a mathematical formulas for gambling, sports betting,peace loving nation of unlettered village peasants. and playing the stocks. By drawing close parallelsOn the other hand, founding father Jawaharlal between gambling and stock market speculation,Nehru wanted India to mature into a large industrial Kelly’s formulas intended to turn stones into gold.nation with an active aerospace program. As India Word went around that when billionaire Warrenwas a country with a large land mass, many Buffett applied Kelly’s theories to his investments,statesmen could not convincingly envision an he had money coming out of his ears. When tradersindustrial revolution that could reach Indian villages and investors experimenting with Kelly’s techniquesin the remote corners. As the sheer logistics were began consistently making windfall profits, scientificmind boggling, these statesmen decided not to speculation was institutionalized in Wall Street.embark on such lofty projects. Mohandas Gandhiwas one such statesman. While Gandhi probably With a repertoire of Shannon-Kelly formulas,focused his attention on building a nation with a investment bankers in Wall Street beganrobust agricultural economy, Nehru focused his outsmarting world markets. Senior Wall Streetattention on heavy engineering projects. For nearly executives began whizzing around the world in theirfifty years, the Indian nation tried to court two Gulfstream corporate jets and clandestinely riggingcompletely divergent policies. However, nation world markets. By about 1980, speculators usingbuilding activities could not be carried out sophisticated mathematical algorithms begansystematically when the development policies were controlling the prices of commodities, food, and oil.confusing and contradictory. India eventually turned It was now time for demand supply equations putinto a country without a well conceived nation forward by classical economists to be rebuffed andbuilding plan. Therefore, the industrial development placed as museum exhibits at the Smithsonian. Thein India has been aimless and haphazard. world was different now, and economies were poised to move along a new growth trajectory. With just a few keystrokes on a computer terminal, WallWhen India gained independence from British Street speculators could now swing the price ofcolonists, her population level probably stood at crude oil from $ 70 a barrel to $ 140 a barrel. Thisabout 350 million. However, within a short time not only made Wall Street tycoons wealthier byspan of just five decades, India’s population hundreds of millions of dollars, but also broke theswelled to 1 billion. The Indian government was not monopoly of the OPEC cartels. Most interestinglyin a position to manage this gigantic tidal wave of however, it brought a significant chunk of Russia’speople. In fact, no government in the world would oil assets directly under Wall Street’s fold.have been able to manage such a calamity. 6
  7. 7. India MBA Copyright© 2011 by Shivaprasad Srikantia. All rights reserved.ARAB NATIONS DUPED GEORGE BUSHHANDSOMELY ADMINISTRATION DUPES THE WORLDAmerican manufacturers Investigations reveal that thecollectively duped Arab nations plan to invade Iraq was beingby supplying them with weapons conceived much before thesystems that were obsolete by September 11 attacks. Georgea few technological generations ! Bush and Tony Blair had to get their act together and hoodwinkThe White House administration and the Pentagon an ambivalent internationaldevised a brilliant scheme to recycle back billions ofdollars of American money paid to the Arab states community about Weapons offor crude oil. The White House administration Mass Destruction.decided to sell military hardware and weapons toGulf states just to recover money paid for the oil. When Colin Powell was suddenly inducted as aThey evolved a clever trade balancing scheme senior member of the George Bush administration,where Arab nations could use their oil profits to he stumbled upon the unrevealed game plan of Billpurchase expensive military hardware from Clinton and George Bush administrations to initiateAmerican companies. This way, a significant a regime change in Iraq. Documents of the Clintonportion of the money paid for oil could be recycled era reveal the wish to initiate a regime change inback into America. The convoluted White House Iraq. In fact, Bill Clinton had gone ahead and signedscheme began by first helping Israel become a the Iraqi Liberation Act. However, the Clintonregional military superpower. Later, the Arab states administration had not exactly proposed a militarywere encouraged to build up a defense system to invasion. Instead, they were probably planning acounterbalance Israeli military power. However, the regime change through internal strife. In 1993, anWhite House did not want the Arab states to be Iraqi political vagabond named Ahmed Chalabi hadable to use these weapons against Israel. founded a political outfit named the Iraqi NationalTherefore, and with the tacit approval of the Congress (INC). Chalabi had approached the CIAgovernment, American weapons manufacturers with some dismally preposterous political schemescollectively duped Arab nations by supplying them to topple Saddam Hussein.with weapons systems that were obsolete by a fewtechnological generations. In a clever trick, themore technologically advanced versions were If American and British oilsupplied to Israel to provide military superiority overthe Arab nations. companies do not grab the oil in Iraq, the French, Chinese, Norwegian, and Italian companies will ! 7
  8. 8. India MBA Copyright© 2011 by Shivaprasad Srikantia. All rights reserved.The George Bush administration was looking for a be in a position to influence politics in Palestine,reason to plan a military invasion and get access to Lebanon, and Iran. Though the White House wasIraqi oil. Sometime in November 2001, Donald willing to help Saudi Arabia attain economicRumsfeld and his team began exploring the idea of prosperity through oil profits, it was unwilling tousing the issue of Weapons of Mass Destruction allow Riyadh to acquire excessive political clout. If(WMD) as a good reason to topple the regime in the Saudi leadership in Riyadh was allowed to gainIraq. Rumsfeld was of the opinion that Iraq would excessive political clout, America’s sphere ofbecome capable of developing nuclear weapons influence in the Middle East would be greatlyby 2006. The point to note is that the plan to invade diminished.Iraq was being conceived much before theSeptember 11 attacks. However, the September 11 Riyadh’s emerging clout was regarded as a seriousattacks opened up the possibility of getting Tony threat to American influence. From a purely politicalBlair involved in the Iraqi invasion. standpoint, a friendly government in Baghdad would be able to significantly offset the clout of Riyadh. As America was a nation that provided military policingRiyadh’s emerging clout was services to the entire world, she wished to have theregarded as a serious threat to right to a steady supply of oil. A problem surfacedAmerican influence. From a purely when Saddam Hussein refused to recognizepolitical standpoint, a friendly America as a policing force. Instead, he chose to perceive America as a nation with corrupt businessgovernment in Baghdad would be agendas. Saddam’s views were partly right.able to significantly offset the cloutof Riyadh. America was actually a world police force with covert business agendas and political agendas.Though the CIA was quite certain that the Al- Under a policing agenda, when energy resourcesQueda outfit had masterminded the September 11 needed to be strengthened, it seemed morallyattack, the Bush administration wanted the CIA to justifiable to invade Iraq, topple the dictatorship,examine the possible involvement of Saddam and install a friendly government. Ian Rutledge hasHussein. When the CIA was unable co come with authored a book titled Addicted to Oil : America’sconcrete evidence, the George Bush administration Relentless Drive for Energy Security. Manydecided to work on the WMD issue and evolve a American leaders might argue with conviction thatjustification for invasion. After all, the international any authority intent on actively policing the worldcommunity had to be convinced. With the data ought to be entitled to a larger share of energycompiled, Germany and France were not convinced resources. Keeping a policing military presence ofabout the WMD. Besides, France would refuse to about 50,000 troops in Iraq might cost Americaendorse a military invasion unless the Security about 20 billion dollars every year.Council of the UN wholeheartedly agreed to pass aresolution. In this scenario, the only person who For an international military policing authority, itseemed to be politically pliable was Tony Blair. It is would become necessary to make deals with Iraq,alleged that during closed door discussions that Iran, Kuwait, Qatar, and Saudi Arabia. Looking ahad absolutely no legal or official authorization, few decades into the future, these deals would haveTony Blair and George Bush began planning for to be able to guarantee a steady supply of oil untilwar. Unlike the Clinton administration, George W. 2050. However, American leadership probablyBush wanted to use raw military force to unseat believed that many Gulf fiefdoms were engaging inSaddam Hussein. worthless regional politics and refusing to make oil deals Incidentally, many Middle Eastern states had nationalized their oil businesses. NationalizingSaddam Hussein in Iraq was trying to acquire would make it difficult for American and British oilnuclear arsenal and flex his muscle in the Middle companies to stage a hostile corporate take over.East region. It is reported that Saddam Husseinwas offering military support and moral support to Instead of perceiving America as a policing force,the Palestinian militias. In a parallel scenario, Saudi many nations in the Middle East perceived Americaleadership was trying to acquire more political clout as a tyrannizing economic power. This was either ain the Middle East. The Saudi leaders seemed to matter of selective perception, or a matter of failure to see the bigger picture. Incidentally, American 8
  9. 9. India MBA Copyright© 2011 by Shivaprasad Srikantia. All rights reserved.diplomats were not skilled at explaining the bigger MULLAH-MILITARYpicture. White House administrations oftenoperated behind a veil of secrecy, and kept the DEMOCRACY IN PAKISTANDepartment of State out of the loop on vital issues. When Zulfikar Bhutto was the Prime Minister ofThrough an unofficial statement, Alan Greenspan Pakistan, he made one fatal mistake. In an act ofhad privately advised White House officials that the spontaneity, he made General Mohammad Zia-Ul-removal of the Iraqi dictator would be essential to Haq the chief of staff. Bhutto had been completelysecure world oil supplies. It was left to the White unaware that General Zia-Ul-Haq was a schemingHouse to make an intelligent decision. From an religious fanatic with hidden political agendas. Afterexpansionist’s perspective, it was morally justifiable settling into his new job as chief of staff, Zia-Ul-Haqfor capitalists and oil tycoons to annex wealth in made a sudden U-turn and toppled the governmentthe Middle East region. If American and British oil of Zulfikar Ali Bhutto. Later, Zia-Ul-Haq had Bhuttocompanies do not grab the oil in Iraq, the French, executed. Eventually, General Haq created aChinese, Norwegian, and Italian companies will. political structure where the military became theFour of the world’s biggest oil companies are from power center, while figure head Presidents andAmerica and Britain. America is competing with Prime Ministers would provide the frail props for aBritish and Dutch companies. Royal Dutch Shell pseudo democracy. In other words, the politicaland BP are competing head on with Exxon Mobil structure originally laid down by Mohammed Aliand Chevron. Therefore, it makes perfect business Jinnah was dismantled by General Haq.sense for American and British troops to have astrong presence in Iraq and continue to maintain With a multitude of clandestinebusiness supremacy. However, politicians,capitalists, and policy makers would find it awkward political agendas in Asia and theto publicly admit this on prime time television. Middle East, America needs goodIncidentally, American oil company executives do diplomatic relations with Pakistannot and the ISI. For the American administration, the proximity of Pakistan to China has mattered more than the moral fiber of the Pakistani military establishment. After General Mohammad Zia-Ul-Haq snatched away power from Zulfikar Ali Bhutto, the secular constitution of the military was demolished piece by piece. Later, what came into existence in Pakistan was an Islamic military. At that time, this military metamorphosis had gone practically unnoticed in international circles. However, the cataclysmic change masterminded by Zia-Ul-Haq legitimized mullah-military alliances. Pakistan’s defense forces could now legitimately draw inspiration from religious groups across the country, and take on a political role in society. Leaders of the Lashkar-e- Taiba outfit vowed to offer support to the official armed forces of Pakistan at times of military distress and war. What exists in Pakistan now is a carefully balanced power matrix between elected politicians, the military, and insurgent political groups deriving inspiration from misinterpretation of scriptures and holy books. For the American administration, the 9
  10. 10. India MBA Copyright© 2011 by Shivaprasad Srikantia. All rights reserved.proximity of Pakistan to China has mattered more Pakistan. In the event of a war, these terroristthan the moral fiber of the Pakistani military outfits can offer logistic support to the armed forcesestablishment. Pakistan’s geographical location has in Pakistan.helped the nation strengthen ties with the White .House and the CIA. Many Western powers wanted nations in Africa, Asia, and Middle East in a constant state of selfThough the army of Pakistan is exceptionally well destructive political turmoil and civil unrest. Aftertrained, it is often tempted to take peripheral reluctantly dismantling their colonies, many of thesupport from a few privately funded terrorist imperialistic G-7 industrial powers wished to seeorganizations which can engineer suicidal missions. third world nations weakened from within throughInsurgent outfits can be helpful to the Pakistani civil strife and genocide. However, in the age ofarmed forces while executing surgical strikes on an globalization and air travel, political violence hasenemy. Therefore, terrorist outfits are unofficially metastatically spilled over to other regions. It hasbecoming an integral part of Pakistan’s defense not been possible to contain mayhem effectivelysystem and military paraphernalia. This explains within the boundaries of third world states.why Pakistani authorities are reluctant to hand oversuspected terrorists to other countries. If such Pakistan has a large pool of self educated religiousinsurgents are extradited, interrogations by foreign scholars, retired military commanders, andinvestigators might reveal their exact ties to the unemployed youth who can comfortably formstate military of Pakistan. In the long run, alliances and evolve into political societies withestablishing friendly ties with jihadi outfits might be violent jihadi agendas. In Pakistan, institutions withbeneficial to the Pakistan military administration. In jihadi agendas are allowed to operate as charitablefact, Pakistani military can cleverly utilize the institutions. Such institutions can legally seekservices of terrorist outfits and the Taliban factions donations from the general public.to occasionally topple the democratically electedcivilian leadership in Pakistan and restore the state After examining the dangerous geopolitical situationtowards military reign. in Asia, American politicians thought it wise to establish closer relationships with Pakistan. CloseA cleric had once warned General Musharraf’s relationship with Pakistan would allow the Whitemilitary dictatorship that Islamic students from the House to have the CIA work with Pakistan’s ISI.madrasas would coordinate an uprising to This was crucial because the ISI knew the localoverthrow the government. The cleric has promised neighborhood better than the CIA. From aa long term holy war and jihad within the country. geopolitical perspective, the White House needsTherefore, the Pakistani military and political elite Pakistan as a partner for exerting influence in themight be trying to strike compromises with Asian and Middle Eastern regions. With a multitudeextremist powers capable of instigating uprisings of clandestine political agendas in Asia and theagainst governments, political parties, or the Middle East, America needs good diplomaticmilitary. The Pakistani military is probably relations with Pakistan and the ISI.demonstrating a willingness to unofficially sharepolitical power with insurgent political organizations The CIA-ISI partnership will allow the White Housein exchange for political calm. to keep an eye on the military ambitions of Iran, Iraq, Afghanistan, Russia, and China through closeBy stirring religious emotions, extremists can easily surveillance. In the last century, the American CIAinstigate violent rebellion against Pakistan’s became a role model organization for the ISI Theirmodern political structures. Just to eliminate the political agendas and tactics are vastly similar,possibilities of a dangerous revolt from illiterate except than the CIA has a larger footprint acrosscitizenry influenced by the ideas of insurgent the globe.political groups, the military of Pakistan might beshowing a willingness to form secret political 4CROYDON BOOKScoalitions with extremists. EQUATION MERIDIAN (Publishing & Syndication)This probably comes in the form of assistance from 10 Hornby Building, 172/174 Second Floor,the army and the intelligence services to terrorist Dr. D.N. Road, Fort, Mumbai 400 001organizations with an agenda. Besides, peopletrained in terrorist camps are a national asset to 10
  11. 11. India MBA Copyright© 2011 by Shivaprasad Srikantia. All rights reserved. 11

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