BJP is Cashing in on the Scared Sentiments of a Nation Facing Difficult Times

Reading this piece of news today made me realize just how political parties use rhetoric and populist statements to win popularity when the common man is down and out in the face of everyday problems.

BJP’s newest President Gadkari (their answer to Congress’ Rahul Gandhi if I may say so) is criticizing the UPA government on two fronts that are sore points with the public right now. Terrorism and inflation. His rhetoric offers no solutions and focuses instead on blame and a suggestion to do nothing. In essence he is giving the people a dummy to burn and someone on who to thrust the blame.

I am no expert in International relations but what common sense tells me is that at times of conflict it is most important to keep the lines of communication open. If the Indian PM has decided that the foreign secretaries of India and Pakistan should re-open the lines of communication, it should not be taken as a sign of weakness on the part of our country. After all it is only the strong who can afford to be generous. Also we must realize that when an attack and its evidence are fresh, discussing it is more likely to have a result.

Regarding inflation- there are multiple reasons why prices are rising. Not the least of which is the relaxed credit environment to help the economy deal with the global economic crisis. BJP might say that the “aam admi” is not the beneficiary of these measures since he is not really running factories or looking for huge loans. But it’s the industry that is creating wealth in the nation that is trickling down to the same aam aadmi. So the interest of the industry needs to be protected.

No political party should usurp the debate on what is wrong with the state of the nation for the sake of their own political gains. Over-simplifying larger issues creates a biased public opinion, which, in a democracy and multi-party governments can stymie genuine measures to correct those same ills.

Does our childhood ever really leave us?

Like most people I have my small collection of devotional music. An eclectic mix of bhajans, chants and even a CD that my husband’s friend recorded for us of a Colorado based American singing the Hanuman Chalisa. But each morning as I look for what to put on and get my dose of bhajans, my hands will instinctively go for the CD that has bhajans I grew up listening to. It is a collection called ”Premanjali Pushpanjali”.

If it is playing in the background and I close my eyes, I am instantly transferred back to my parents’ bedroom in the small town in Punjab where I grew up. The Digital sounds of the CD change to the small sound that my mother’s prized Sanyo two-in-one used to play. I can hear her pottering around her room on a Sunday morning cleaning up and the soulful strains of the singer floating in the air.

The same is true of food. Carrot halwa is a favorite of North Indians in the winter months when the delicious red carrots are in season. Many people cook this universal favorite to almost a crisp consistency till the carrots are a deep brownish-red. My grandmother’s version was a more milky concoction where the carrots were soft and you could taste the thickened milk as the flavour burst in your mouth. She embellished it with a few almonds. That was it. Simple and clean. And surprise surprise, till date I will pick my granny’s version over any other. If someone serves the dish with cashews, raisins etc. I will unknowingly pick out all other embellishments save the almonds and enjoy the dish only if it is milky.

All this makes me wonder- if the hold of our childhood is so strong in simple choices like bhajans and dessert, surely it must have a serious and lasting impact on more significant things like value systems, morality and the way we handle our relationships. I know a lot has been written about this subject and the link is well known. But when I you think about it this way, you realize that the hold goes down to such a deep level that many of us are not even aware of it. Many a times we may be making choices and not even realizing it because we are unable to avoid that course of action. And it also means that if needed, weeding out the influence of childhood is a very tough thing to do. You can change what you are aware of. How do you begin to correct something you don’t even realize is wrong?

So as parents it only increases our responsibility that we are wise with our child’s childhood. Not to be paranoid, but parenting can not be an unplanned activity because when we choose to give that apple to them instead of a bag of chips or are rude to someone in public, we are pretty much ensuring this what they will do when we are not around

Should you lend money to someone who cannot pay Rs.1500?

Strange as it may sound to the average Indian, but now you can actually buy a pair of jeans on installments- and yes they will even give you the whole garment at the time of the purchase (ha ha) !

Read an article this morning that talks of a partnership between Levi Strauss and a leading bank in India offering a plan whereby you can buy jeans over Rs.1500 and pay only one third upfront and the rest in equal monthly installments. My first reaction was “These Americans- here they come barging into our economy and infecting it with their ideas!” I was irked, but not sure why I was irked. After all if some young bloke out there can now dress well, improve his self-esteem and eventually become a better person for it then why not?

But after thinking through this I realize what bothers me about this. There is nothing wrong with borrowing money per se (because that is what this scheme really is (they are lending you the money you don’t have and will take it from you later). But when it is for non-essential purchases it straddles the dangerous line between consumption to up your standard of living and pure indulgence. Once acquired, the habit of spending before you earn, is a hard one to break.

Having lived in the US for sometime I have seen such schemes. People will pay deceptively small sums of money to stores to “hold” garments for them till such a time as they can buy the garment. Many will never purchase the garment and simply have sunk money to feel like something is within their reach and those who will eventually buy will land up paying much more than they should have and then too when they obviously have a shortage of money.

Ironically, the smaller the ticket price of the item being purchased on an EMI basis the more the danger of the default and of it being a bad financial choice for the individual. After all if you can not afford to shell out Rs.1500 at one time how sound is your cash flow situation? And also the seller is not likely to do a real credit check on you for such a small amount. A car or a home loan is another matter altogether.

So my grouse with EMIs for a pair of Rs.1500 jeans is that it is obviously a scheme to cash in on the desires of the young and the restless who are not yet mature enough to fully plan their finances and are at a risk of becoming a new population of defaulters.

Public Parks as Private Spaces- A Uniquely Indian Paradox

Anybody who goes for a stroll in the few public gardens of our large cities will have faced this phenomenon. Hormone charged young couples “hiding” behind bushes and the fake concrete-wood machaans and other structures, satisfying their carnal instincts. Most private of acts being carried out in public spaces. I would like to call it a nuisance. But I hesitate. What I see in it is a uniquely Indian phenomenon.

Most of us would agree that as a society we have relegated sex, both the act and any other expression of it, to the most private of realms. So private are we about it that we would like to deny its existence and most young couples blush at the mention of having children as it implies that they have committed “the act”. But paradoxically, our youth is forced to take this very private act to the most public of places- our gardens, historical tourist spots, cinema halls and corners of restaurants.

Perhaps the main reason for this paradox lies in the cramped housing situation in most cities and complete lack of privacy in homes as a result. A youth cannot (unlike in the West) bring a girlfriend home and spend some “cozy” time with her in his room. Even newly married and older couples rarely have rooms to themselves and are forced to seek out the anonymity of public places to spend some intimate time with each other.

So whether it be Nehru Garden near Delhi University or the open façade of Marine drive, when our youth makes out in a public place they may not have the blanket of privacy but have the cover and comfort of anonymity. You see it brings up the age old issue- does a tree in the forest really fall if no one hears it falling. Just something to think about in the most populous nation of the world.

Rediscovering Your Siblings

I have a younger brother and a sister. Growing up we did not spend too much time together. My sister and I went away to a boarding school when our brother was very young. Even we were together there was very little that just the three of us did to help us form a bond that is unique to siblings. In a household full of cousins, aunts and uncles, our circle of relationships was so large that it left no room for a unique place for each other.

Also when I look back I feel that in our teens and early adulthood we had very little emotional ability and dare I say even the motivation to really think about each other at any deep level. If anything, we fought (like most siblings) to have the upper hand in decisions like what movies to go to, what television set to buy and who would have to sacrifice our nice AC room to sleep downstairs under the fan with our grandmother!

But having come to a more mature stage in our lives, where each of us has something of our life-paths sorted out, and a stronger identity that is not just derived from our parents, I feel that we are closer now than we have ever been. Having become individuals we are now finally a group. Even though each of us lives in a different continent and this summer met up after nearly five years, there is a closeness that was not there before.

Having discovered this new bond, I have come to realize that in a world where the traditional family structures are changing radically and social support systems can be often hard to come by, a sibling can be of great comfort. First of all there is the comfort that comes from a long period of shared values and upbringing. I can for example talk to my sister about certain quirks about my parents and she will instantly understand. Where as with a stranger or even my husband that level of empathy will never come. Also with a brother or a sister it is far easier to take criticism and even unsolicited advice. You just know that it is coming from the goodness of their heart and a concern for you. You are not wondering if they are just saying things to be hurtful or to force a choice down your throat.

Technology has made it easy for the three of us to stay in touch. I am a part of my sister’s every day travails with her two little kids and get regular updates as my little brother struggles to start his own business in Australia. For their part they have been able to give their support to me during my current pregnancy and together the three of us are now a far greater source of strength to our parents than before.

So my advice to anyone who reads this- go make that phone call to your brother or sister. You will discover a friendship that is both rewarding and fun and will bring you a lifetime of comfort.

The National Game is worth Rs.1 Crore- that is it!

I had to count the number of zeroes twice! I could not believe that the Indian Hockey Team had needed just that amount to go back to practice and it had actually taken a stand-off to get that money from the sponsor.

I am not even going to compare that amount to the money that is spent on cricket in this country because that comparison is overdone and not valid anymore given the cult following cricket has. I am going to compare it to a sport of the elite and very new to the Indian masses- Golf. A news report recently spoke about how the prize money for the biggest tournament in the country is close to 7 Crores!

So why can’t we get Rs. 1 Crore for our National Game? Who is responsible for preserving the dignity of the game? To me the responsibility lies squarely on the shoulders of the Government. After all Hockey is our national game and as long as it is that and does not have commercial backing, surely it should be propped up the Government. After all if we were not committed to the sport then why did we agree to host the World Cup?

The Government can not absolve itself of this responsibility and when private sector participation is not forthcoming, it must make arrangements for the funds. If not, then own up to it, change the National sport and do not host any more Hockey World Cups.

Whose 1-800 number is on your ULIP?

Today’s column in The Mint by Monica Halan touches a topic close to my heart and warrants a comment, even if it is to spit out what has been bothering me for over a year now.

End of 2008 I quit my job as VP at one of the largest Financial Products distributor in the country. I had spent close to two years at the firm and having worked in Retail and the more exclusive Private Wealth Management group, I had by then seen the whole spectrum of what it takes to get people to give you their money to grow it. Yes, the pitch and the clients in Retail Insurance and Private Wealth Management could not be any more different, but essentially in both cases you are asking someone to believe you that you know of the perfect place for them to park their money and where it can grow.

But that is not where the similarity ends. Both situations are wide open to fraud and sales spin. And this is where my comment on Miss Halan’s column comes in – unlike her I believe that the burden of rectifying this sordid state of affairs cannot rest squarely on the shoulders of the regulatory bodies alone (we have seen what little good audits and checks did in the case of Satyam!). The consumer is not just a victim of the corrupt Distribution system, but also of manufacturer apathy and their own unwillingness to learn. And we must attack all three sources of corruption at once if we are to succeed.

Let us first look at Manufacturer apathy. Distributors are but agents and therefore by definition simply extensions of the corporations that design and manage these financial products ranging from the deceptively simple ULIPs to the certainly more complex derivatives. A Distributor is a distributor whether they are selling you shampoos, cars or in the case a financial product. Just as you would expect that a Toyota would train its dealers to give you accurate information on its cars, as a consumer you should expect that these corporations such as ICICI Prudential, HDFC, Reliance Life Insurance, would ensure that their agents are not mis-selling their products. After all the cheques you write at the time of purchase are made out to these companies and not the agents and also the 1-800 number you see on top of your document is for the manufacturer not the agent! But as an insider let me say- this rarely happens. If a Distributor is showing remarkable sales success, a Relationship Manager from the Manufacturer is happy to “overlook” some of the shortcomings. After all his sales target at the end of the quarter is not going anywhere.

We are underestimating the moral responsibility and also the power that an honest manufacturer can have in correcting and errant distributor. By truly linking incentives to training, regulatory adherence and dedicating resources to regular investigations, a manufacturer can provide the much needed grass roots correction for this problem. And this will happen only the day the Manufacturer realizes that it is ultimately their responsibility to ensure that their product is sold correctly. After all the ULIP I have bought is not an ABC agents’ product but one belonging to ICICI Prudential.

Finally let us not absolve the consumer in all of this. If Indians can spend hours haggling with a vegetable vendor on the quality of a single tomato, why can't they spend a minute questioning the if not irrational but almost unrealistic promises of the sales people touting these instruments? Surely we must take responsibility for the safety of our hard earned money. The recent success of ULIPs as instruments of vestments had much to do with the meteoric rise of the stock market and the innate human trait to want to make a quick buck. Greed has driven us to abandon our better judgement and we must pay the price for it. So let us not treat investments with the same ignorance as we would if we bought medicine from a road-side “khandani dawakhana” set up under a tent and promising to solve all our medical woes overnight.
The manufacturer, consumer and the regulatory bodies must form a holy trinity to kill this devil of false information on financial investments.