Wednesday, 20 April 2011

Economics of Law

An interesting article by a friend, post my trying to explain him what Options and exotics are......what caused the fall of Lehman Brothers


As an engineer I was supposed to do calculus and develop algorithms in my life. These things somehow made sense to me. Even though I was never the best but I still seemed to be going somewhere with them. But the two things which refused to get into my head were the language of law and the laws of economics. They always seemed so complicated, so alien to me that all my efforts to understand ended up futile. At the end of trying to understand them i would be so tired that I would go back to doing my serverside programming. I have a few aspiring MBAs and a few MBAs as my friends, Whenever I asked them what the hell was wrong with the economics of this world , they would start teaching me futures and equities and commodities and many more such terms . It always would seem as if I was getting near them and then suddenly they would bounce over my head.

My grand old man once told me, if your solution isn’t simple, its not the solution . So I decided to go and find out the simplest way of understanding economics. The basic rule that governs it all. After talking to many MBAs and commerce grads my problem was still unsolved. Then I went to friend of mine, The Gujju, who i was sure would be able to answer me. And he did, in a manner that suggested I had asked him something that was common knowledge. He asked me if I remembered what was taught in the high school economics book, the demand and supply curve .Surprisingly I remembered and remembered it well . He told me whatever jargons the CEOs , CFOs or the MBAs used ,it would always boil down to the demand and supply rule. Wherever there is money, there is demand and supply channeling it around . That was my Buddha moment. Suddenly I started understanding economics. I still did not get the terms but I understood the basic rule. He also gave me another piece of advice , to nod when an MBA talked , that’s the quickest way to shut him up . Any questions and arguments will only extend your trauma.

Having satisfied one part of my ignorant self, I decided to try and satisfy the other using the same principal. I decided to keep it simple. I once read a renowned journalist, he opined, in India we have too many laws but too little justice . I wondered if I could understand India's judicial system using the same rule that I used to understand economics. The demand and the supply rule.

It is not difficult to see how judicial system in India works once you have applied the rule . In India the supply of laws is perennial, every year some new rule is added to the already overflowing reservoir of laws. This abundant supply of laws has made it cheap. Law is bought and sold at every court in this country, sometimes in the name of out of the court settlements and sometimes as bail . Although it must be noted that not all laws are in equal supply. Some are more readily available than the others. Take for instance the traffic laws. They are the cheapest, and are bought and sold at every signal. I sometimes feel they are like the FMCG, the fast moving consumer goods. There are other laws covering petty crimes which fall in this category. The laws covering serious crimes are a little more costly . Murders, rapes, kidnapping are a little costly to buy off , but nonetheless are bought and sold. These laws are not sold in the open market, their availability is restricted to some sophisticated markets . One with money can always find these places with some helpful lawyers eager to show you the way. The most costly of them are the Industrial laws . The laws need consistent investment. The big industrial houses invest generously in the political parties which return the favor once the come to power or reach a position to decide who comes to power. These investments are costly also because the product that the consumer demands has to be custom made as per the customer's demands. The choices of the customer are respected and it is believed that in absence of laws that can be tweaked to help the customer new laws are created to cater to customer's needs.

As far as justice is concerned, in India it is in scarce supply. If the conviction rate can be seen as a variable to the scale of availability of justice, it can be defined as abysmal. If we take into account the amount of time our courts take to deliver the verdict, the supply of justice looks even worse . In such a case justice in this country has become extremely costly and can be considered only as a luxury for the rich . No wonder that many a poor accused in this country spend more time in the jail than their conviction would have warranted had their case been heard. On the other hand the rich move on with their lives often after committing heinous crimes because they were able to buy the bail. Where the poor have to often rely on public prosecutor who is poorly paid, sometimes incompetent and many a times corrupt; the rich come with a battery of foxy lawyers to bid for verdict in the great auction of Indian judiciary .

In a country where food and kerosene are subsidized for the poor, i feel a day has come when the finance and the law ministries will have to subsidize justice too. And also add justice into the basket of items they use to calculate inflation.

Applying the rule of demand and supply may not have helped me understand the language of law , but it has helped me to understand the nature of indian judicial process . I remember an old movie climax where the police officer shouts at our hero, who is holding the villain at gun point "Vijay , kannon ko apne haath me mat lo " . I wondered would I be able to say that to a poor vijay holding a gun at a rich villain . I would be urged to look the other way.


Thursday, 17 March 2011

Finally a Solution-Part1

Finally a solution Part 1

CWG,Adarsh ,2 G spectrum ,Karnataka land scam ,Housing loan scam , ISRO scam etc etc and the list goes on .This id not a comprehensive list , not even if we are considering only the last few months. Corruption is seen everywhere around the world, but the most disturbing part of these scams if the fact that the big political public figures involved in these are going to go no where. The politicians will get elected back from their respective seats. According to one estimate if we were to save money from the only the scams listed below , we would be able to distribute thousands of rupees to each and everyone in this country , just like that . So why do the people of this country keep electing the corrupt back to the office , are they so gullible to be swayed by their hollow arguments ,are they such simpletons to be fooled by them all the time , are they naive or just plain stupid.

My grand old man once said to me 'Never in history , and very unlikely in future, is the number of intelligent people more than the others'. In other words the smart have always been in minority. And looking at the current state of India's parliament I have come to agree with him. One of India's greatest principle has become the biggest hindrance, that being universal adult franchise - one vote for every person above 18.


Now that we have found out the issue lets try and resolve it.

The men who formed the constitution of this country were learned and wise men , and they had foreseen this problem. They provided with a mechanism to limit the damage this might cause. When the provided the people of India with the principle of universal suffrage, two kinds were deliberately excluded . One , the convicts and second the mentally unsound . And so we have our solution , we should by all means stop mentally unsound people from choosing just about anybody to the parliament.

According to a study conducted by a very renowned wise person (yours truly) , it has been observed that with the arrival of the new age there has been an advent of new kinds of mental illnesses. For the benefit of the country we will have to help the patients with such illnesses and till then not let their error in judgment hurt the future of the nation.

Let us then see some of the biggest and the most prominent of these illnesses.

IWTBOTV or IB syndrome.

IWTBOTV ( I Want To Be On TV) is a mental condition where in people of various ages have been found to leave their normal peaceful life for the rigors of reality tv shows. At the initials stages the patient is found to be glued to the Idiot box ( hence also called IB ) for hours watching saas, bahu, ro(w)dies , big boss , swayamvar etc etc . The patients symptoms include the following illusions : all reality shows are real and are not scripted , plastic surgery is the biggest trade in India and is available at every nook and corner , people can live for 200 years , people can die and come back , people get really fall in love on tv shows and get married and such others . After years of research yours truly has found out the original source and the mother carrier of the virus causing this disease. This creature has been going around in the celluloid world spreading this disease . The creature goes by the name Rakhi ' look at me ' Sawant . It s believed that the virus is a mutated form of another virus which too was seen very recently on Indian shores . The carrier creature of this virus goes by the name Pam 'look at my ' Anderson .

The origins of the virus is being also traced back to a special bio-technology lab some where in remote Pakistan . According to our secret sources in the county's (un)Intelligent services , this particular virus is a revenge act against India's act of planting Asif ali (Mr 10%) Zardari virus in Pakistan.

The patients in the later stages of this disease are believed to lose and idea of difference between reality and TV , and in such cases important information is impossible to reach their brains. According to our study majority of the patients infected by this virus believed Hillary Clinton was Michelle Obama's mother-in-law.



ASS syndrome

ASS or 'AM Super Start ' syndrome functions in ways mostly seen in the auto immune diseases , in which body's immune system starts attacking the healthy cells thereby creating great damage. In the ASS syndrome the psychologists believe that the person's confidence in himself grows so strong that it starts losing all its other healthy senses . The patients are believed to look normal outwardly , but a closer look gives away the symptoms quite clearly . It is believe to affect both men and women equally . Some men affected by such disease are found confidently walking on the pavements at noon in summer time with leather jacket on them . And others are found sporting goggles at 7 pm inside a restaurant . Some others were seen arguing with waiters and teaching them how to wait on a table .These are but a few symptoms among men, other symptoms could range from believing that they can teach the the current prime minister about governance, teach aamir khan about acting and teach sachin tendulkar about batting. They can also be seen wearing pink jeans and telling you they can carry it off .

Among females the symptoms are similar but the most apparent ones are in those where in the girls or women wear loud make up and bright dresses even on regular days. Such patients are believed to have lost the sense of the phrase 'looking hot' . They have come to belive that inducing pain and burns to the eyes of every onlooker is what it means to look hot . In such cases the people around them are justified in wearing goggles or glares in self preservation.

A very high profile case infected by this syndrome has recently been reported to us . The patient is called Nimnesh Neshmiyan . He is reported to be acting like an ASS for some time now . He is being studied as an extreme case , one who has lost his sense of listening, one who has forgotten the use of throat for singing and use of brains before talking. The worst symptom is the fact that he has started considering himself an actor . He is been blamed of inflicting the cruel pain on people of watching an ASS on the big screen.

People are requested not to laugh or pass comments on such patients as these patients in all honestly have no idea of them being an ASS .

To be Continued....

Sunday, 6 February 2011

A peek into the mind

A short story written by my friend( who doesnt want his name to be disclosed)

Mornings and evenings in Mumbai are very social events, we meet people at railways stations or bus stops from every part of the city and they put their arms around you push you and take you places. It is one of those evenings for me today , I am waiting for my bus, bus no 512 at the stop . The better part of waiting was that I had company,a beautiful girl.
We had nothing much to talk but after every few seconds we would look at our respective watches and then turn around to look at each other. It was all of 5 mins of wait before the bus arrived. In a fast paced city like mumbai , doing nothing for five long mins is a cruel waste of time.

The bus was not crowded but we got into bus in a huff even before it had come to a complete halt. Boarding a bus or a train in a hurry is a ritual in the city and has to be followed under all circumstances , no exceptions allowed.

As luck would have it only 2 seats were vacant and that too together. We took the seats, she took the window seat , I had underestimated her agility.

For a moment I thought of extending my hand and saying "Rakesh , naam to suna hi hoga", but better sense prevailed and I desisted from saying anything. I decided to close my eyes and go to sleep , best thing to do in a BEST bus. I closed my eyes, rested my head on the bar extending from the seat and went into my thoughts.

"Kiske saath hoga chamatkar"..."aaj hi hai woh khaas din". The words of the India TV anchor kept coming back to my thoughts. With some useless graphics and a bearded baba they were hell bent on proving that some cosmic changes today are going to cause magical changes in our lives. How all the moons of all the planets formed a formation (they are always in some formation anyways) which would emit special energy and would effect the magenetic balance of the living world on earth. It sounds baseless in itself, but with the added spice of the "breaking news" and "CHAMATKAR" and other such tags jumping on the TV screen, it looked insanely comical.

I felt something on my shoulders , I woke up to see the girl in her sleep had rested her head over my shoulders. Now this is the the kind of dilemma I am not used to . If I wake her up it would seem rude and if I dont it looks as if I was taking advantage . For once I wanted the driver to hit a sudden break or miss a bump or may be just honk loud. But he wanted the best driver award today.By now the bus was crowded , end I thought every one was staring at me and waiting to see how I react. Her head stayed on my shoulders and I did the best thing I could , closed my eyes and pretend to sleep.


"Lucky Bast***"

Who was that , I thought and opened my eyes. I saw a guy , my age , looking at me non-chalantly.I looked around to see if anyone else heard that. But no one was reacting .I looked back to that guy again.

"Why do the biggest of the jerks get the most beautifull of girls?"

It was him. He was saying things without moving his lips. Is this some kind of joke. And why is no one else hearing anything.

"What is he looking at? Is he gonna get down?" That guy again was talking .

Suddenly it hit me . Cosmic magic. I did not know how to react. I thought of getting off from the bus. But then thought of having some fun.I looked back at the guy. Straight into his eyes.

"What is he looking at. With such a beautifull girl next to him why is he looking at me. Shit... he is gay. I knew it the moment I laid my eyes on him."
And he fought his way through the crowd to the other end of the bus. I liked the idea that he thought the girl was my girlfriend , I know it was crazy to think so , but guys are guys.

I was wondering what was next. I did not had to wait much longer.

"Guys are such losers."

Where did that come from? I asked myself.I found her after some seraching in the over crowded bus.She was standing a little distance from where I was sitting.

"They are only after skin deep beauty."

I smiled and wished I could ask her what should I look for... a beautiful kidney or a nice liver.She probably did not hear me . Not sure if the magic was working only on me. But I was the one enjoying it the most.

"How I miss the good old days....."

Now who is that? .I turned my head a little to find a couple standing there. The man shielding the lady from the crowd. He looked at me a couple of times and was thinking ."College days were fun. How I wish I had the guts to tell my parents I do not want to marry.Atleast not then."

The guy's looks were what I called every kids biggest dilemma. He was too young to be called uncle and too old to be bhaiyya.

"I wonder where she is now." I was still hearing his thoughts. He was missing someone,ex-girlfriend may be. He turned to look at his wife and smiled at her. I thought he felt apologetic for thinking about his ex when she was still around . It is tough to be a guy in this world.

"Besharam" some one screamed into my head. I almost reached out to close my ears , but then realised the futility of it and stopped.

I should have expected this. An old man with tilak on his forehead staring down angrily at me.

"The whole generation has lost its respect for our culture and traditions. The western influence will destroy us some day. See the way they are sitting in a public place. No restrain."

Restrain? I thought of reminding him that at my age he was married and father of two. So he can keep the gyan about restrain to himself.

All this feeling about being antaryami brought a smile on my face. As it happens in life that was bad timing. The girl just woke up and saw my smiling face.

"Sicko...... how disgusting are these guys"

Whattttt..... I just did not want to be rude. I wanted so hard for that girl to hear my inner voice. The girl adjusted herself on her side of the seat and
started looking out of the window. The smile from my face was wiped clean.This eventful journey was anyways coming to its end. In another couple of
mins I will get out of this bus . I closed my eyes and decided I want to hear no other thoughts than mine.


I got down from the bus and got to business. "sorry yaar the bus was stuck in traffic" I said.
She was not even looking at me. I wonder why I was not able to hear my girlfriend's thoughts. I wasnt complaining. The mood she was in , she wasn't thinking very well of me anyways. I think the cosmic formations had changed . Good for me.

Saturday, 11 December 2010

Lincoln's dilemma , India and Arundhati Roy

Abraham Lincoln once wondered “Must a government be too strong for the liberties of its people or too weak to maintain its own existence?” That was close to 150 years back. Many generations of administrators and politicians have come and gone , the world has seen two world wars since and numerous forms of governments . Through all the wars and all these governments the question Lincoln asked still stands in face of the people who are entrusted with power and responsibility. Some governments have been guilty of excessive control on the liberties of its own people. Some of them have flourished doing so , case in point is China. While our liberal democracy struggles to bring everybody on board over issues , they seem to be cruising along efficiently . So where does the answer to Lincoln's question lie . Where does one draw the line . This is also something that must be troubling the brains in Indian government after Arundhati Roy's assessment of Kashmir's past , present and future.


Arundhati Roy , a well known author and a booker prize winner , asserted against Indian governments official stand that Kashmir was never an integral part of India and that India occupies the land through brutal and oppressive force. There has been much reported about her statements and the validity of its arguments have been discussed threadbare . On the question of Kashmir never being an integral part of India through history it has been argued that India in its present form was never seen in history. Also at one point in history Kashmir did form a part of the great Sikh empire under Raja Ranjith Singh , along with almost all of present day Pakistan and Indian Punjab. In Europe, nations kept trading territories through war or trade through out history . How do we then decide using history as the basis on which part belongs to which country . On the question of using force to subvert legitimate demands of azadi , the nationalists in India raise the question of the legitimacy of the demand and the encouragement it receives from across the border. But by all independent accounts it is observed that it is the common young man who has taken to the streets demanding azadi . Now this reminds me of another of Lincolns dilemmas , of how much and when to use force against any state which wants to secede .Does not the nation have the right to maintain its territorial integrity not only against external forces but also against internal uprisings. These questions in general and the question of Kashmir in particular is very complicated to be resolved through newspaper articles.

So far the Indian government has chosen to exercise restrain over Arundhati's case .Lawyers opine hers is a case to be tried for sedition. But the political brains suggest not acting against her lest we turn her from one of the numerous social activists into a victim and a rallying point in Kashmir. The western media too would love to report about a booker prize winner in jail and a victim of Indian brutality. There are also two more set of people with contrasting opinions . One that thinks that Arundhati has been acting as an attention seeker and this one book wonder has decided on using sensational activism as an easy way of staying in the news . The opposite view, one which I read a lot on blogs and liberal circles , is that she is brave , someone who is an intellectual and has proven her mettle by winning a booker award . Both these groups have strong arguments for their opinions. Even though the first group forms a huge majority , the ultra liberals are a strong community too . Many a times their argument drifts from Arundhati's view on Kashmir to Arundhati Roy herself. What is said and why she said so takes a back seat and what she is takes the centre stage . Even though it is important of who is saying, what is being said and it underlying factual basis should always take precedence. Politicians better than most and social workers more knowledgeable than others have been known to have gone wrong. Even though Arundhati for what she is makes the whole issue so big , but if the focus shifts from the core issue the resolution will take a lot more time to come.

For 150 years people have struggled to reach the balance Lincoln wished to know. Some have been over the line some fell short of it. We as a nation have reached somewhere near that balance . Arundhati's case , not the first of its kind and not the last , will test us and our understanding of the rule of liberal democracy . The quest for the balance is not yet over , the story of Kashmir is one of the chapters that will be read in the future by people trying to find the line between public liberty and national integrity.