Cashless and Thoughtless

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There has been a lot of push from international organizations to make poor societies around the world copy Western institutions, and recently to go cashless. Blind to differences in cultures, these international organizations have hugely over-estimated the organizational capabilities of people in the emerging markets — in the Middle East, South Asia, Central Asia, Africa, and Latin America.

Anyone who has spent a sensible amount of time in emerging markets — not in five-star settings but as a normal person — knows that in these countries, an organization of two people often has one person too many. It is also evident that the two tends to expand into dozens, hundreds, and thousands, either because of the local desire to subsidize more people or because of the need to instigate a Western-style bureaucracy to control the whole thing.

Erroneously assuming that we are all the same, that specific cultures do not matter, and that all that matters is training and incentives, there was a huge push for globalization.

In these culturally very different markets, companies and institutions — Western concepts, which do not transplant well without the underlying European culture and values — can never stay nimble. To maintain control, internal bureaucracies must grow to provide checks and balances, because workers fail in independent thinking, work ethics, honesty, and cooperation. Creativity stays conspicuous by its absence.

Despite seemingly low labor costs — as low as a couple of dollars a day in wages — the costs of keeping such organizations together grows exponentially with size. Growing bureaucracies require additional checks and balances. Without the cleaning mechanism of European values and the control systems they provide, these organizations invariably accumulate dead mass, which keeps growing cancerously until they crumble under their own weight. Organizations that do not have constant blood transfusions and external subsidies tend to disintegrate rather rapidly. The price of keeping them together is extremely high.

In a climate already characterized by political correctness, a certain wisdom that Europeans had accumulated about the colonized world had evaporated by the time the USSR era ended in the late 1980s. Erroneously assuming that we are all the same, that specific cultures do not matter, and that all that matters is training and incentives, there was a huge push for globalization.

German companies moved their factories to Eastern Europe, a region of relative cultural closeness to Germany. But many factories have since moved back. The anticipated cost savings turned out to be the exact opposite. All kinds of configurations of Western corporate investment in emerging markets were tried, with similar results.

The problem is that these emerging markets’ societies are tribal. In such cultures you need the glue of violence, subsidies, and massive bureaucracies to keep organizations in place. The experiments of the past 500 years with colonization and Western education show that it is not easy — when it is even possible — to wean societies away from tribalism. Bigger and bigger organizations were put in place in emerging markets, but they tended to remain poor and in strife. The intervention of Western economic methods created an unnatural gap between the poor and an entrenched elite, rendered more entrenched by the possession of whatever new wealth was produced.

Many factories have since moved back. The anticipated cost savings turned out to be the exact opposite.

There is only one solution: keep organizations in these emerging markets as small as possible, remembering that tribal instincts ironically propel them to make their organizations big. Never subsidize big organizations, for if you do, besides providing services that add value you create operations that are a massive drag on the economy, full of endeavors that consume wealth instead of producing it.

This brings us to the current drive to go cashless.

India has recently attempted to reduce the use of cash, ostensibly to reduce corruption but actually to further centralize the economy by creating a medium of exchange that the government can constantly monitor. Naturally, it is also creating a national ID card system. Both of these are in direct conflict with what India should do as a tribal, medieval society.

Let’s consider the sequence of steps required to operate an online bank account in India.

Start with slow internet connections and frequent interruptions in electricity. Add extremely unwieldy websites, websites that do not open properly. My browser often gets hung up on these sites. My password has a limited validity and must be renewed regularly by using the old password and a one-time password sent to my mobile phone; and a lot goes wrong during this “simple” process. Once inside the account, however, I may need another one-time password and an additional transaction password to complete my business.

Most people actually walk down to their bank branch to do the so-called online transaction — a clear instance of the fact that trying to modernize any system beyond its natural capacity in a tribal society increases the costs and makes it more difficult. This is the persistent irony of modernization.

My Indian banks charge me fees and commissions I never agreed on. They then top it up with taxes on “services” provided. Bank statements are ridden with so many charges that only the rare person has time or patience to sort them out, particularly when the banks are crowded, and getting someone to talk to you on the phone is extremely difficult. When you get through to an agent, he usually knows nothing.

The frustration of the people has been steadily increasing. Instead of easing their lives, the reduction of cash has added significantly to the burden.

It gets worse, especially if you are the so-called common man. I know my way around pretty well, but I frequently get stuck. And here is a country where 25% of the population is officially illiterate and where engineers and doctors choose to apply for jobs as janitors, mostly because their degrees are no more than paper. It is a country where a large proportion of those who claim to be literate struggle to sign their own names, let alone show themselves capable of reading a sentence. Imagine how they would deal with forced digitalization of the currency system. This will end in disaster.

Even now, in the last six months that India has been trying to reduce the usage of cash, the frustration of the people has been steadily increasing. Instead of easing their lives, it has added significantly to the burden.

Notably, however, none of this means that people have gone against the Indian prime minister, Narendra Modi. He is winning election after election, and most people simply love him. When not facing banking problems in real time, they are actively in support of Modi’s attempt to go cashless. One must remind himself that this is a tribal, irrational society. People often cannot connect simple dots that are right in front of them; not even the so-called educated ones can do that. They tend to do exactly more of what created the original problem, which in this case is irrational authority.

Any tribal society contains the impetus to make bigger, and more complex systems of authority. Tribal people want nannies. They feel secure in big structures, despite the fact that such structures actually make them less safe. Tribal people demand free stuff, without any feeling of gratitude to any real source of wealth. Governments meet that emotional need, while doing little else for their subjects.

Any rational leader would make an aggressive attempt to counter a tribal society’s willingness to increase the sizes of its institutions. But tribal societies do not easily produce rational leaders. They operate through expediency, not through rationality or objective moral thinking.

The IMF and the World Bank think that these emerging markets need better institutions. They think these countries need to reduce corruption, which is one of the reasons for the push towards going cashless. Locals in these countries agree. The irony is that these locals haven’t a clue about what corruption means — their tribal worldview means that they do not see corruption from a moral perspective. They merely look at the need to end corruption as a tool of expediency to improve their personal lives. They may think that everyone should stop asking for bribes, but they do not include themselves individually in that equation. Any sane, non-tribal person can see that this does not add up.

Tribal societies do not easily produce rational leaders. They operate through expediency, not through rationality or objective moral thinking.

Contrary to the view of many libertarians, even when privatization does happen, there can only be limited improvements. Indian companies — for they have tribal people as ingredients — are instinctively dishonest. They lack a work ethic and, unconstrained by morals, they rampantly abuse their clients. For example, I used an online Indian travel agency to buy an international ticket. After tens of attempts the money left my bank account — but I never got my ticket. The company said I never paid. No one knows whether it was the bank or the agent that was at fault. Eventually the agent refunded my money to the bank, but then the bank blocked that money. I had to run around the bank, which could not trace that blocked money. I shouted, screamed, and threatened, but in this entangled mess, I don’t really know who was the culprit. I do know that big organizations and forced-from-the-top digital money simply do not work.

Given the low-trust culture, Indians prefer immediate exchange of goods for money and vice versa. If you pay for a later delivery, you undertake huge risks that your goods might never arrive, and if they do arrive it is not unlikely that you might receive substandard goods. If you sell goods for payment at a later date, your money might never come. No wonder 95% of Indian consumer transactions happen in cash, with goods exchanging hands exactly at the same time that cash is paid.

India’s attempts to go cashless will end in a disaster. This will become obvious in a few months, not years. But India is merely an example. The situation with most of the emerging markets is exactly the same (with China, perhaps, as the only exception).

The lesson is that poor countries are poor for a reason, despite all kinds of tools of technology — particularly the internet — that are available to make their economies rapidly converge with that of the West. Western institutions worked in the ex-colonies as long as Europeans ran their institutions. With Europeans long gone and European values no longer underpinning them, the institutions have increasingly become hollow structures — what one sees everywhere in Africa, South Asia, and the Middle East, with the exception of a few small countries. An attempt to go cashless is a tribal attempt to centralize, exactly when their institutions, including the institution of the nation-state, another European import, are imploding.




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India: Great Expectations

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In 1991, under pressure from the IMF, India opened some industrial sectors to private companies and removed several licensing requirements. Private cellphone operators, banks, and airline companies started to appear. Soon, private banks were so customer-friendly that they would send someone to your home to help open an account. If you wanted more than $400 in cash, they delivered it free of cost. If you had a complaint, an employee would come to meet you in person within hours — wearing a tie, even in sweltering heat. Mobile phone companies provided outstanding service and, within years, at an enviable price. They delivered my SIM card to my home. If you wanted a new car, you did not have to worry about going to their showrooms. They came to you. Local airlines served great food and drinks, and were manned by bubbling youths full of passion for success. Foreign companies looking for competitive, English-speaking young people set up their operations in India.

Today, much of this lies in ruins. You have to keep chasing these private banks. Their websites are unfriendly, and they deduct money from your account without first informing you what they are about. An account holder stays away from credit cards, unless he really needs them or must show off; yet he still gets credit cards sent to him with yearly fees charged to his bank account, all without his approval.

The Indian government is a vicious, insensitive, passionless, totally corrupt, utterly stupid, and spineless organization, made up partly of psychopaths and partly of crooks, from top to bottom.

Airlines are marginally fine — with sulky services — as long as your baggage doesn’t go missing or a delay doesn’t make you miss your connecting flight. When my baggage went missing, so did the sleek-looking customer agents, for no one wanted to take responsibility. I recently discovered that the biggest mobile company now has no customer service number where you can talk to a live person. You must visit their office. If you deposit cash after your SIM was slated for disconnection (which of course you would not have been informed about), it will have disappeared into a black hole, from which a refund is virtually impossible unless you waste a horrendous amount of time. If the front-line agent has some figment of humanity (which is quite a rarity), he will tell you not to try getting your money back, for he might see the pain you would suffer trying.

Meanwhile, foreign companies started to realize that the costs of doing business were much higher than they had anticipated. They found that looks were deceptive. The English-speaking employees lacked skills, productivity, work ethic, and curiosity. Call-centers started to move to the Philippines. India stayed at best a back-office hub.

On earlier occasions, when I faced problems with Indian companies, I would report them to consumer forums, or write in to the complaint sections of the media. But I soon realized that despite any compensation I received, I spent so much time fighting the insensitive ears of these private companies that the project was cost-prohibitive. These days, if the money involved isn’t much, I forgive and forget, a sign of greying hair and loss of idealism. If what is involved is substantial, instead of fighting in consumer courts, I look for the most efficient strategy. If the Indian company is a subsidiary of a foreign company, I start by calling their CEO's office. When the Indian arm of a Korean refrigerator company refused to do anything about a problem, by calling their Korean office I got a new refrigerator. When a subsidiary of an American company gave me a faulty air conditioner and did nothing about it, I called their CEO in the US. I told his secretary that I would call twice a day to ensure that I got to speak with the CEO. Then their Indian arm worked so well that even the best anywhere in the world would have been impressed. But I have digressed.

In a mere few years, private companies became more like state-owned companies. In some cases one prefers state-owned companies, where at least a bribe does the job. Why?

In general, the "profitability" of Indian companies, particularly the big ones, is a reflection not so much of wealth-creation but of political backing, of their ability to find loopholes in regulations, and of outright theft, often from the poor section of society.

How things go wrong

The Indian government is a vicious, insensitive, passionless, totally corrupt, utterly stupid, and spineless organization, made up partly of psychopaths and partly of crooks, from top to bottom. Most have very numb or dead brains. They exist in dirty, unhygienic, and terrible environmental conditions, for it is they who do the cleaning. I can recall very few encounters with bureaucrats or politicians in which a bribe was not demanded. Moreover, you must grovel and beg in front of these (figuratively and literally) diseased people. Even then there is no guarantee that they will do the job.

I remember that on many occasions the bribes were not about approving something, but just to release my files so that I could take them myself to the next diseased creature. Only a citizen whose mind has not been destroyed and numbed would not feel humiliated by what he goes through at government offices. Not only is the bureaucrat after money, but he relishes the act of demeaning citizens, in a corrupt attempt to make up for his deep-rooted inferiority complex and self-hatred.

Demeaning others leaves the Indian bureaucrat feeling good about himself, at least for the moment. The irony is that all this makes him seriously sick, physically, mentally, and spiritually. His children go astray and he never understands why. As you discover reading The Lord of the Rings, in a tyranny, there is no single tyrant. Everyone is tyrannized by everyone else; everyone's spirit is subdued by everyone else’s. A bureaucrat must sit with people of his kind, who scheme against one another, forever wallowing in the rotting sewage of envy, hatred, and a strange kind of showmanship. In reality, however, they have nothing to show but impotence, for they never create anything useful or productive. They, their wives and kids, and even name-dropping relatives, show off their status in an exaggerated way, through noise, heavy-handedness, armed goons in costumes, and big cars with sirens.

Not only is the bureaucrat after money, but he relishes the act of demeaning citizens, in a corrupt attempt to make up for his deep-rooted inferiority complex and self-hatred.

A casual observer might believe that all you have to do is get rid of such bureaucrats. All you have to do is to change the party in power and streamline regulations and remove corruption through an empowered constitutional authority that politicians cannot touch.

Why then why did private companies fail to sustain their proper character?

The problem is much deeper than an observer might imagine. It is a problem that cannot be reached by the typical libertarian prescription of reducing the size or composition of government. When the prescription is applied, things don’t not turn out much better; and the improvement certainly does not last.

What most people fail to understand is that the state is little more than the sum total of the collective mind.

In India, even a perfectly created product has a very short half-life. My new gym has grown old within months. The dust piles up; the equipment rusts, rather rapidly. My new car earned a big dent, the day I bought it. Every vehicle gets smeared with dents. I don't know anyone who hasn't had several injuries and close calls with death. Day-to-life faults happen with amazing regularity, a frequency that could never have been imagined or statistically expected. The most resilient equipment burns away if you do not think of using a surge protector, for the electricity company will increase the voltage by misconnecting the wires at the main poles. Normal cars need to be redesigned to ensure that they work because, for example, there is almost universal adulteration of petrol. Refrigerators that are designed to keep working as long as they are plugged in stop cooling when water condenses and freezes in their air-pipes as a result of frequent electricity cuts.

Every time you take anything for repair, even a minor one, you get a patch-up job. You are looked upon with amusement if you ask for a good, clean job. No self-respecting workman would want to have anything to do with you, irrespective of the money you offer. Expediency is the mantra. If ever there is a serious repairman, he needs immense cognition to isolate the problem. The others patch whatever they can get away with patching. When you tinker with a system or an individual piece of equipment, trying to correct the problem, you often create more problems, for your tinkering — however innocent it may be — undoes the other patches. This situation exists not just with equipment but with absolutely everything in life. Most Indians waste a very large part of their day putting out existential fires. My five hours of no electricity today, in what is among the best neighborhoods and those most catered to, are one of my smaller worries, for at least I know what the problem is.

So what is the deeper problem?

Unfortunately, but predictably, the bureaucrat described above is merely a reflection of the larger society. He is the tip of the iceberg. This is always the case, but what most people fail to understand is that the state is little more than the sum total of the collective mind. The visible state — the government — and its tyranny is a symptom of the underlying problem: a society that breeds and sustains the statist poison. Individual Indians will decry corruption, but virtually everyone will pay a bribe to gain an unfair advantage over others or take bribes by rationalizing it away. Even written contracts have no value. It is considered fair game if someone steals your money and gets away with it. Most people will not rent their property, for they fear it will not be returned. Most people, even the guy on the street, have a perfect prescription for how I should live my life and will offer it to me unabashedly. Respect for others as individuals and their properties is a completely alien concept. This, combined with fatalism (a product of a superstitious mind that is immune to the concept of causality), is the reason behind the chaos on the roads and every other area of life. I contend that the Indian road is a visual representation of how the Indian mind works.

You cannot have a small government in a society in which everyone wants to control everyone else's life, where no one can be trusted to do a job properly, where the concept of how to make money is not wealth-creation but manipulation and theft. You cannot avoid building a large and corrupt police force in a society where the individual cannot be trusted. You cannot stop a complicated structure of regulations and government in a society in which individuals cannot think straight, clearly, or rationally.

If someone wants a real, sustainable change he should work in the arena of critical thinking and individualism, not on imposing superficial Western ways.

A tyrannical government is a product of a tyrannical, corrupt, and statist society. Even before the society changes, it is the individual who must change. A free society is unsustainable without free-minded individuals. Those who want real change must work on the root: the individual.

The general totalitarianism, indolence, dishonesty, lack of work ethic, confused thinking, irrationality, superstition, and lack of respect for other people have too much momentum on their side to let private companies stay good. The initial euphoria, mostly of a drunken kind, a catharsis, lasted for no more than a few years. What you culturally see in India is not different from what the West was like perhaps 500 years back. India's problems cannot be dealt with unless the society has gone through the reformation, enlightenment, and scientific revolution that happened in the West.

What differentiates the West from "the Rest"

For vices to be replaced by virtues — the way in which a rational individual perceives them — the concept of reason must take precedence. For those who do not think by means of reason, for those whose culture is not based on it, the vantage point from which vice and virtue are considered is very different. For such people, touching a low-caste person to help him might be a sin, and forcefully occupying the property of a poor person to build a temple might be a virtue.

Lacking appreciation of all this, the US government — assuming it was well-intentioned — spent many years lavishing its resources in attempts to bring democracy, the rule of law, etc., to societies where such constructs have mutated back to what they originally were. Those truly interested in bringing a change must understand that outside the West, the mainstream's way of thinking and conceptualizing the world, its way of imagining and perceiving the world, and its resultant aspirations and motivations are driven by undercurrents that are essentially pre-rational. It is the undercurrents that must be changed. They must, indeed, be replaced by reason and individualism.

The problems of India are extreme, but they aren’t just India's problems.

In my travels around the world, I am reminded of this again and again: there is the Western civilization, which values the individual and the concept of reason; and there is the rest, the area of the world in which most people haven't a clue about what individualism means or, if they have a clue, abhor it, even after hundreds of years of interactions with the West and even after the advent of the internet, easy information, and cheap traveling.

Reason and individualism are a rare fruit, a very expensive one. Without it, democracy, the rule of law, and regulations against excessive state power have limited and mostly unfavorable effects. That is the problem of India today.

And not just India. Most places outside the West are in a mess, living a contradiction, having some material development but lacking the necessary basis in reason and individualism, and hence of ethics. Even the West has increasingly lost these concepts. This might be making the world an extremely unstable place. But, again, I digress.

If someone wants a real, sustainable change he should work in the arena of critical thinking and individualism, not on imposing superficial Western ways, trying merely to reduce regulations or reduce the size of the public sector.

The future of India

With China slowing down, Russia failing to impress, Brazil in stalemate, and the economies of the West in stagnation or decline, the focus of those looking for economic growth has moved to India.

Despite producing some of the largest numbers of so-called scientists, engineers, and so forth in the world, India is an extremely wretched country. Relatively speaking, a huge amount of economic growth has taken place since 1991, when it is believed that India started to open up — from GDP per capita of a few hundred dollars then to $1,625 today. In my view, the date when India started to change economically was a decade earlier. India had started opening telecommunications to impress visitors during the hosting of the Asian Games in 1982. This in turn opened channels for an easy import of information and technology through the telecommunications cable. Things developed from there. But now that the low-hanging fruits of imported technology have been extracted from the tree, India is stagnating again.

The mainstream media disagree, strongly. During the past year, the euphoria of the old days has returned to India. The stock market has recently been the highest ever. Foreign institutional investors are flocking again. They see India as the next China, ignoring the fact that India is one of the rare countries that hasn't had an event to shake off entrenched interests, social habits, and patterns of thinking during the past many centuries.

How Modi can change a country of 1.25 billion is something that no one really wants to think about, for these are times of euphoria.

Deaths of hundreds of thousands every year in avoidable calamities of course haven't triggered any shakeup, and hence cannot be called revolutionary. Also, it pays to remind ourselves that the so-called independence movement in India was a political event. As a rule of thumb, a political event is an active avoidance of introspection. India's certainly wasn't a cultural movement or even a shakeup. In a way, it was the antithesis of a shake up. Before that, entrenched interests had participated in the revolt against what came to be known as the Bengal Renaissance, which the English supported. Democracy allowed the basest of elements to rise to the top, making entrenchment worse and a possibility of a shake up more remote and entangled.

India's newly elected prime minister, Narendra Modi, is behind today's grand hopes. Everyone is looking at him. Alas, Indians are so badly trained (and unable to think straight and clearly from the perspective of reason) that supervising a mere few of them often feels impossible. How Modi can change a country of 1.25 billion is something that no one really wants to think about, for these are times of euphoria. Hence, the cycle starts again.

There are far too many hopes about this deity. Modi's deification is perhaps the most visual symptom of India's problems: the society looking up to someone or something external to bring salvation. Today's youth have far too many material expectations, taught them by the TV, but not enough productivity. This might be a very dangerous cocktail in the making. Even if it isn’t, I see no way for India to experience meaningful change unless it gives up its irrationality and superstition. I see nothing on the horizon that is capable of teaching critical thinking to the youth.

For those who care to imagine, India may be, culturally and intellectually, where China and Russia were in the late 19th century. Then, India was indeed going through its own renaissance — the Bengal Renaissance — until it was nipped in the bud by half-baked, uneducable people (Gandhi, Nehru, etc.) who went to study in England and learned nothing more than what their irrational minds could accept: intellectual rationalizations for socialism. They neither got nor were capable of getting even get an inkling that what had made England great was reason and individualism. A bottom-up renaissance was corrupted into a top-down design to change India, the so-called independence movement.

At some point, India has to pick up the threads where it left them, with the premature end of its renaissance. Would that require it to suffer what China and Russia suffered in the early 20th century? It shouldn't, and I would hate to see that happening, but is there any other possibility that human history shows?




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Why the West Went Ahead of the Rest

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What makes societies poor and what makes them rich? What makes a certain society accumulate wealth, create complex social relationships and productive institutions, minimize conflicts, and build a creative, happy population? On the other hand, what makes a society either fail to produce a surplus or quickly dissipate it or misuse it for self-destructive purposes, leaving the populace in chronic conflict and wretchedness?

For reasons unfathomable to an external, rational observer, many societies that could develop in a healthy way never really do, continuing instead to wallow in sadistic lose-lose paradigms of existence. The observer may keep saying that all such a society needs is a few minor institutional adjustments — in education, law, democracy, free-market economics, or property rights — and it will be on a rapid upward path. To his dismay, this proves impossible. If the expected institutional adjustments are made, the situation often gets worse and, ironically, the people’s predicament becomes even more institutionalized.

Considering the various reasons why European civilization went so far ahead of the rest is perhaps the best way to isolate the ingredients that make for a successful civilization. This isn’t, however, an easy task.

Guns, germs, steel, and six killer applications

In Guns, Germs & Steel: The Fates of Human Societies, Jared Diamond says that environmental differences — not intellectual, moral, or genetic ones — created certain opportunities and necessities for social evolution that led to the superiority of the West. Westerners were early in settling down to an agrarian economy, perhaps because they had more access than other peoples to suitable plants and animals. Agriculture created food surpluses, freeing some people for activities other than mere sustenance. Specialization allowed them to build different competencies — guns, steel, and tools — thus amplifying positive feedback loops. The large Eurasian landmass allowed them to exchange innovations. Access to better domesticated animals gave Westerners advantages in farming, and then in warfare and transportation. The close proximity of humans and animals gradually increased humans’ resistance to germs, giving them huge unexpected advantages in overseas adventures. By themselves, these are small matters, but over centuries, compounding with positive feedbacks, they put the West well ahead of the rest. That is Diamond’s argument.

Many societies that could develop in a healthy way never really do, continuing instead to wallow in sadistic lose-lose paradigms of existence.

Taking a different perspective — and not necessarily contradicting Diamond — another author, Niall Ferguson, in his book Civilization: The West and the Rest, argues that beginning in the 15th century, a few small parts of the western end of Europe developed six powerful new concepts or what he calls “killer applications”: competition, science, the rule of law, modern medicine, consumerism, and the work ethic. These “applications” allowed western Europe to surge past all competitors in the East. According to Ferguson, economic competition and political fragmentation fostered capitalism and innovation, both between and within states. Property-owning democracy gave landowners a voice in government. Modern medicine cured diseases and prolonged lives. An industrial revolution, supported by a work ethic and a savings ethic, provided mass-produced goods and sustained innovations. Together, the “killer applications” made the West the preeminent civilization. The contrast between the West and the Rest is evident in many historical examples. While, for instance, Prussia separated church and state and encouraged education based on scientific enquiry, creating a predilection for open enquiry and a scientific attitude, immediately to the east of Prussia religious laws forbade the study of science.

Diamond identifies a plausible, geographical cause of the greatness of the West, while Ferguson makes no attempt to show why the killer applications originated and sustained themselves in that part of the world and not others. But let us move forward in history. All the ingredients that the two authors mention — guns, steel, and the killer applications — have been available to the rest of the world for at least the past two centuries. Given increasingly easier movement and transportation, environmental limitations of the weaker societies should not have been too material. So why did the others fail? Why are so many societies still stuck in low and middle income traps? Japan is the rare large non-Western society that has broken the income trap, but even there cultural oppression is still the norm. Why has even the West started to falter?

I believe that the two authors, despite being mostly correct at certain levels, have not found the root cause of what made the West great. Ferguson does not even make the attempt. Diamond tries, but was likely blocked by political correctness, for he seems disinclined to explore moral or intellectual differences. As a result, he takes an exclusively materialist position. The Eurasian landmass is vast, and many different societies developed within it, with very different levels of sophistication. In what looks like post facto rationalization, Diamond fails to confront what would have been environmental opportunities for non-Western societies — warmer weather, for example — if they had been adequately exploited, as they have not been in many countries in the Middle East and Africa. One might even counterargue that it is hardships and lack of resources that are the true impetus behind the development of our characters, and hence of a better civilization.

Of course, my interest is not to criticize societies as such, but to look for the magic potion some have missed.

Steel and the killer applications: they didn’t work in the Rest

In Congo, Rwanda, and Sierra Leone machetes (remember, “steel”) have been used to kill millions of people. Similar is the case of Soviet Russia, and Cambodia, where as much as 25% of the population was butchered efficiently, by the use of guns. In Mao’s China, love for steel was the jumping-off place for the Great Leap Forward, which led to a famine that killed perhaps 50 million people, destroying capital built up over centuries.

It may even be hardships and lack of resources that are the true impetus behind the development of our characters, and hence of a better civilization.

Having fecklessly copied Western forms of governments, these people competed fiercely for political power, routinely expunging their opponents or sending them off to gulags. Later, when the Russian state officially reduced its influence in the economy, what people got were oligopolies. The state gave way, but the free market failed to assert itself. Contrary to popular belief in the West, backward societies have enthusiastically adopted Western legal and educational systems, as well as democracy. But this has usually provided a mere facade of sophistication imposed on tribal instincts and a strong belief in might-as-right.

In India, technology — operating through the internet — has been very effectively used to increase a belief in magic and fairies. When I was growing up, we were shy about discussing astrology and in admitting that we followed a ritualistic religion. Today, revisionism has been so outrageous that a large section of Indian society, particularly the so-called educated class, believes that India had spaceships and ultra-high technology thousands of years ago. Last year, one of the headlines in India’s national media was about the archeological department digging up an area to look for buried gold. What made anyone believe that gold might be lurking underneath? A god-man had a dream in which a king told him where the gold was. Somewhere in the minds of Indians there is an omnipresent deity, a faith so fixed and overpowering that it sets a certain way of thinking and looking at life, pre-empting other possibilities.

Poor societies often have very high levels of consumerism. Just visit the high-growth parts of Africa and Asia. Macau is now a much bigger sin city than Las Vegas. The majority of this world’s luxury goods are consumed by people from poor societies. In large parts of Africa and Asia, people prefer to buy expensive cars and Louis Vuitton bags, at the cost of sharing a room with several others. If you have been to Johannesburg, it is unlikely you were not awed by the number of very expensive cars on the streets.

Quests for truth and spirituality have no place in an ecosystem that does not respect the individual.

So, why have guns and steel and the killer applications not achieved the intended results in non-Western societies? Why have simple implementations of the free-market system not worked as they are supposed to work? Why has the system so often mutated into something completely opposite, something very corrupt? One might even suggest that enforcement of the killer applications has incapacitated the Rest from developing from within something extremely crucial, without which the applications don’t work and often become corrupted.

What did Diamond and Ferguson miss?

The magic potion

The groundwork for Western greatness was laid more than two millennia ago. Seed takes time to germinate, but that does not mean it isn’t doing its work. Seemingly dormant in its effectiveness until the 15th century, the Western seed eventually asserted itself and gained momentum in mainstream society. And the meme in its subtle ways influenced, lubricated, and enabled an explosion of creativity, an accumulation of surplus, an intricate division of labor, a philosophy of individual rights, a reduction in the exploitation of human beings, and an increase in adventurous risk-taking, all working in sync and with increasing social cohesion.

Recently in India I witnessed people negotiating for a young girl’s labor without her participation. The girl had absolutely no concept of her personal identity and hence none about her “rights.” She did not even have to give herself to her predicament; she didn’t know better any better. Today, as I write this, a teenage Jain girl is being driven around the city. She is throwing away money on the streets, which will be picked up by passersby, poor and rich. As an entry to the priesthood, this symbolises her renunciation of material life. Alas, she will have done this without really understanding the shallowness of temptations, ironically making her forever needing to fight against them. Much younger girls have been pushed into priesthood among the Jain, with virtually no possibility of an exit. A few years back one died after 45 days of continual fasting — she was not allowed to pull back from a pledge of a 100-day fast.

Quests for truth and spirituality have no place in an ecosystem that does not respect the individual. The individual becomes the sacrificial goat. No growth, no capacity to wonder, no possibility to image the infinite is possible where the individual lacks sanctity. Individualism does surface, but in very hypocritical ways.

Those who have not seen themselves as individuals must endure lives based on beliefs and faith, immune and virtually blind to reason and evidence.

The magic potion that made the West great, the intellectual “application” that underpins everything else, is the recognition of the sanctity of the individual, and the means by which that understanding has seeped into all the nooks and corners of the West society — its philosophy, its governance, and its social structure. This was the seed that grew and made the West great. This is something that societies outside the West never had.

Reverence for individuality leads to reverence for reason. The person who comes to respect himself as an individual allows himself his own thoughts, feelings, and intelligence. Those who have not seen themselves as individuals must endure lives based on beliefs and faith, immune and virtually blind to reason and evidence.

Ideas have power. They set our limitations, our imaginations, and our visions. The concept of the individual set the West on a totally different path, a path that led toward Diamond’s guns and steel and Ferguson’s killer applications.

Without respect for reason (which cannot happen without the individual), killer applications can only be accepted on faith and belief, further complicating tribal instincts and confusing society even more, making people more irrational by burdening them with more beliefs. Only the rational individual has the capacity for moral behavior, for self-responsibility. If he sees himself as a part of a collective, he rationalizes his “immoral” behavior as something that works for the greater good. He then has no reason for self-reflection. He even lacks a true sense of wonder and mystery. And he has no balance. In such a case, killer applications cannot work in sync, except by default, and then only for a short period.

Training people to aspire for the highest might be similar in its immediate outcome to training them to sacrifice themselves for the larger good. But there is morality in the former. The latter crushes them or makes them hypocritical. The culture of discussion, of real discourse about ideas and philosophy, is alien to most societies outside the West. But knowledge and wisdom do not accumulate in either a person or a society that lacks this culture. Over centuries the net effect has been enormous.

People who have grown up recognizing others as individuals, as entities with their own wishes, inclinations, and free will, may have a problem understanding the possibility of anything else. But this recognition has been by far the biggest achievement of the West, something that most of the world is still grappling with. For those indoctrinated in other ways, there is so much adverse mental superstructure, so many invested emotions and unconscious motives, that getting to the recognition of the individual is an immensely difficult and challenging, almost impossible, job. I have spent decades painfully unburdening myself from the conditioning that many Western children are never really burdened with. Indeed I envy them.

But did the West not trade in slaves, colonize the rest of the world, and give minimal rights to the women in its own societies? Of course it did. But it is always a mistake to judge people of the past on the basis of what we know better. However gross and crude recognition of the individual was two millennia back, it was a path-breaking achievement. Alas, having failed to conceptualize the sanctity of the individual, billions around the world today still live no better lives than those of animals.

Individuality: the East did not get it; the West is losing it

The West’s chosen religion centered on a man born in a normal family, not among the kings. Perhaps Greek and Roman philosophy created an environment of rationality conducive to the emergence of Christ. The New Testament emphasised the idea of the individual. Its subliminal message is for the individual to take responsibility and grow. The emphasis in regard to salvation is on the individual, not the community. The locus of morality is the individual, not the society using the individual as a sacrificial goat.

One might argue that the concept of the individual came as a result of Protestant Christianity. Or perhaps Thomas Aquinas was the reason. But my view is that these were visible signs of the germination of a path-breaking idea. The idea of the sanctity of the individual had taken firm roots in the West long before the Reformation started.

The Renaissance, the Enlightenment, and the scientific revolution never really happened outside the West; and without a respect for the individual, and hence without a concept of reason, deeply embedded in a culture, the killer applications may be copied but are not understood and do not stick. They often mutate into something completely different and are used in very corrupt ways.

Islamic madrasas have a bad name for indoctrinating children. But this happens in most of the East, all the way to Japan. Children are destroyed from very early on. Through consistent humiliation, the force-feeding of facts, and various other means, their individuality is prevented from coming to the surface. Enforcing killer applications on such cultures merely burdens them with more beliefs and faiths, exhausting them emotionally and psychologically even more. No wonder suicide rates are so high in Japan and South Korea.

The grand vision of life and humanity is being replaced by hedonism and peer pressure, for that is all that collectivists see.

This way of doing things cannot change until the societies of the East adopt the primacy and sanctity of the individual. Again, to a distant observer this may look easy, but there is a massive superstructure of beliefs and faith that must fall apart before individualism can be inculcated. Resistance within society and even within the individual will be huge. And before this, people will need to recognize the very concept of individualism. That is truly the biggest acquisition a society can make — seemingly easy for an outsider, but extraordinarily difficult for those who suffer from the lack of it. Centuries may be required for a society to develop an individualist culture.

The West’s emergence was no simple task. But now the West is retracing its steps.

Like termites, cultural-Marxist values have been eating the West from within. For several generations they have been changing the nature of Western civilization by slowly but insidiously discouraging self-responsibility and the concept of the individual. The grand vision of life and humanity is being replaced by hedonism and peer pressure, for that is all that collectivists see. For these constrained minds, the ultimate utopia is a society in which everyone looks and behaves the same. Women see themselves as liberated only if they participate in the rat-race to break the so-called corporate glass ceiling, often contrary to their true desires or instincts. Lacking touch with their inner selves, they copy what others do, including sending their children to industrial daycares, to inculcate the ways of the collective. They exist in a trance. Ironically, with their own individuality destroyed, people then look for satisfaction through external sources and their chosen celebrities. Increasingly it is the vulgar elements — the Miley Cyruses and Kim Kardashians — that are chosen. This is no surprise. How can you see quality if you don’t have it within you? And you cannot have quality if there is no “you.” The suffocated voice of one’s individuality then asserts itself in corrupt ways through mindless materialism, a craving for power, and vicarious living. The six killer applications malfunction, the way they have in the East.

It doesn’t take a leap of faith to understand why, despite globalization and free trade, the East has mostly imported the vulgar, collectivist elements of the West. What is lacking is the magic potion — the sanctity of the individual.

rsquo;t doing its work. Seemingly dormant in its effectiveness until the 15th century, the Western seed eventually asserted itself and gained momentum in mainstream society. And the meme in its subtle ways influenced, lubricated, and enabled an explosion of creativity, an accumulation of surplus, an intricate division of labor, a philosophy of individual rights, a reduction in the exploitation of human beings, and an increase in adventurous risk-taking, all working in sync and with increasing social cohesion.




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Bringing the World under Its Domination?

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A couple of new YouTube videos making the rounds talks about the Islamic strategy to take over the world. They talk about how over the last 1,400 years, Islam has spread its tentacles nearly everywhere, slowly increasing its political influence. Mullahs in these videos prophesy, while beating their chests, that Islam will take over Europe and fly its flag over the White House. Sharia will rule the world. It is assumed that Muslim men are forever ready to die and to claim their 72 virgins, once in heaven.

The horror of ISIS’s actions has been made palpable in its own videos. And it is understandable that non-Muslims should react viscerally to the actions of fanatical Muslims in the Near East and elsewhere. But some perspective is necessary. It is even possible to say that not all the bad news is real.

Recently news about ISIS demanding that all women between 11 and 46 years old undergo genital mutilation became the talk of the blogosphere and was widely reported in the international media. Female genital mutilation is mostly a problem in African countries, so the world would be right to pay attention to any news that shows wider enforcement of a horrible custom in an area already afflicted with religious fanaticism and tribalism. Even those who quite rightly don’t want to get their own military entangled in the internal issues of foreign countries would be justified in criticizing practices that are inhuman.

The result is a growing anti-Muslim mass hysteria and an intellectual climate that the military-industrial complex wants.

Alas, not many people paused to verify whether the news related to genital mutilation was authentic, or to check whether there was someone else apart from a lone UN official to support its validity. How easy or acceptable would it have been if the media had written a similar accusation, about some other group, without confirming the authenticity of the report?

But thirteen years after 9/11 — a period during which talking about Islam has been taken out of the realm of political correctness — one can expect to get away with saying the most outrageous things against Muslims without a need to verify the information, before critically examining it. As with several news items like that regarding genital mutilation, even if the news is eventually proven to be false, in the minds of those who accepted it first without critical examination, it will have left an undefined hatred and repulsion against Muslims.

The result is a growing anti-Muslim mass hysteria and an intellectual climate that the military-industrial complex wants. By compromising our capacity for critical examination, we make ourselves gullible and vulnerable to manipulation, sacrificing the very foundations of Western civilization. At the minimum our judgements of the risks we face and solutions we see are erroneous.

I am no fan of Islam. Neither am I a fan of Christianity, Hinduism, or Buddhism. Neither am I a fan of the tribal, narrow-mindedness and high time-preference lifestyle of a large proportion of many of those in the African continent. Neither am I a fan of nationalism, a new-age religion to which a large section of Americans is extremely prone.

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I have nothing against “religions” as long as they attempt to explore the spiritual nature of life. But ritualistic religions based on a system of concrete beliefs are an antithesis of spirituality and discourage thinking.


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As I write this, Muslims are being butchered in Myanmar and in Sri Lanka by the much-esteemed Buddhists, for no reason that a rational mind can understand. But isn’t Islam a more fanatical religion? In the sea of irrationality, it can be hard to know which of these formal religions has been worse. Only a century back the Christian nations were killing tens of millions of their own kind in two “great” wars, and even today African tribes kill hundreds of thousands for no good reason. Chinese killed tens of millions of their own. Cambodians killed 25% of their population. Massive killings and pain were suffered in South America and Russia. A few hundred thousand innocent people in Nagasaki and Hiroshima were incinerated by the US. And in suicide bombing those who have shown extraordinary performance are not Muslims but Japanese kamikaze pilots. In recent times the concept was revived by a Hindu organisation, the Tamil Tigers in Sri Lanka.

What Islam suffers from is generally the reality of life in all poor societies: their irrationality, a cultural existence that has not gone through an age of reason and the age of enlightenment. I have no interest in defending Islam from its problems. It has its own, some very specific to it. But there are some that are taken out of context. So let’s get a perspective on some of those.

In my city in India, businesses complain that Muslims must go to pray twice during working hours. I ask them why they don’t hire Hindus instead. The response I get is that Hindus come drunk in the morning, if they come at all. Alcoholism is a massive problem in most of the poor parts of Eastern Europe and Africa. Drug addiction and alcoholism, albeit not yet officially recognized, are an increasing and major problem among Hindus in India. Ironically, in the popular culture, it is Muslims who have the bad name: for their prohibition against alcohol.

In some Islamic countries, women are not able to attend universities. They are not allowed to have sexual relations when they want, with whom they want, because many Muslim men are obsessed with virginity. Misogyny rules the roost. Men control what women wear. This is the commonly understood narrative in the West. But while men get all the blame, in reality much of the control over women in these societies is conducted by elder women. In the Western media such information is often expressed by using the passive form, perhaps to cater to the needs of those in the Western feminist movement who never want any blame to go expressly to women. Indeed, besides the military-industrial complex, a certain strand of the Western feminist movement takes pride in demonizing Muslims, perhaps because some people caught in that strand want to feel better about themselves. For some women in the West, casual sex, peer pressure that urges them to work even when they don’t want to, the routine of day care for children, and, very importantly, the need of western governments to collect taxes from more bodies have brought more burdens than happiness.

Virginity is indeed valued in poor societies, not just among Muslims. But in some communities in the US as many as 70% or more of babies are born out of wedlock, with the average being 40%. This is a major social problem leading to disintegration of families, which ironically Muslims rightly recognize, calling it “decadence.” In rich societies social welfare programs, albeit in a very corrupt way, take the place of the missing dads. In poor societies, women cannot afford to be single mothers. Parents of such girls are paranoid about their getting pregnant, because bringing up children is very expensive. But can they not use contraception? Contraception is expensive for those earning $1 a day, and still carries the risks of pregnancy and disease. For poor people this risk, however small, is simply not worth the fun — these societies are mostly attuned to survival, not happiness or pleasure, anyway. To put this in perspective: half of births in the US are unintended.

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A deeper reflection on the above might show that examining an alien culture’s social problems without understanding the broader context can be grossly misleading. Should you work for “liberating” women in such societies? Are you more likely to destabilize their societies, making the situation of women worse? Do the problems of women exist in isolation from the problems of men, children, and the elderly? Or do they exist in a balance within their cultural and economic context? Should you shovel democracy and western institutions down their throat? Or would such imposition — if not preceded by an intellectual renaissance — only confuse them, killing their capacity to develop the cultural ingredients to develop such institutions on their own?


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But isn’t what women wear in Islamic countries particularly restrictive?

Not only in Islamic countries but in many Western countries as well, women are expected to show a higher level of modesty. In most of the US, it is permissible for men to go topless but not for women. Depending on their society, people have different senses of shame. Not all forms of distinctive dress for women — or men — are necessarily signs of male domination. One might want to visit Turkey, Malaysia, and even Indonesia, to see whether Islam is necessarily in opposition to modern life.

We grow up with idiosyncrasies of our own culture and don’t see them as such. In India and China, both of which are considered to be on the front line in dealing with Islamic fanaticism, a very large proportion of women are missing: babies relegated to the dustbin, put under the leg of the bed soon after birth, buried alive, not looked after when sick, or aborted because they were female. Why isolate Muslims as particularly bad?

But what about chest thumping mullahs who want to bring the West under sharia law? Such people have existed in all religions and in all regions. Moreover, new immigrants to the West, particularly the so-called educated — from Mexico, Africa, China, India, and elsewhere, including Muslims — have a tendency to vote for collectivist public policies, ironically directing the politics of their new home toward what made their original country wretched. A majority of Western women, who mostly got the right to vote in the last century, have voted for collectivist policies, increased social welfare, police, and state control. The result is that the US has increasingly turned into a militarized police state. They achieved this without much “help” from Islam.

When you hear about mass killings, the reality is usually not that the society is murderous, but that it is just too sheepish and emotionally broken.

One does see armed gangs and in some cases real armies beheading people on TV in Iraq and elsewhere in that region. Such gangs succeed not because individuals and communities, despite the other sins and irrationalities that blossom in a tyrannical society, directly approve of such criminality. They happen because most of the society is so completely broken, superstitious, irrational, and sheepish that it does not resist or fight back. Yes, when you hear about mass killings, the reality is usually not that the society is murderous, but that it is just too sheepish and emotionally broken. The average Muslim, however irrational he might be, still cares for his family and has no interest in killing others.

The Middle East is dotted with American bases, where America has historically tried to influence the region’s culture and politics. What would Americans think if there were a Muslim army stationed outside New York? One might even ask if it is not the sign of sheepishness that some people in the Middle East don’t hate America.

Almost certainly such wretched societies seriously lack the organizational power to take over the world, if they can even conceptualize that. Were this not the case, Israel — a country of a mere 7 million people — would never have come into existence. Many people in the Islamic world have no clue about the US, apart from drones and occupying forces. But the same people have problems identifying major cities in their own neighbourhood. Mostly they don’t know what their neighboring countries are. They just don’t have the intellectual ingredients to imagine expanding Islam to take over the world.

Islamic societies’ biggest problem is not fanaticism but irrationality and superstitions. That is the reason they are poor. Thousands are killed in fights between Shia and Sunni. Some are killed because they refuse to change their religion. But torture, pain, wretchedness, and systemic corruption are a part of day-to-day, moment-to-moment life in most of the world outside the West. Most of these people are born in virtual slavery, wallowing in disease and tyranny. Might-is-right is the operating principle in most of the world, from Islamic countries to China, to Africa, to India. Millions of people in these regions die needlessly every year, their deaths unreported in the media. Why blame only Islam?

More than Islam, what the West should worry about is the increasing irrationalities in the West itself, loss of critical examination in the intellectual space, and an increasing influence of cultural Marxist values — values that are the antithesis of what made the West great but are today posing as what underpins Western civilization.




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Election in India, World’s Biggest Democracy

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Mahatma Gandhi, when asked what he thought of Western civilization:
“I think it would be a good idea.”

The biggest democracy in the world has started an electioneering process for the next federal government. This massive exercise runs from April 7 to May 12. Euphoria has swept the nation. Foreign Institutional Investors (FILs) are extremely optimistic about India’s future. The Indian stock market has reached its highest ever level.

Comparing India's low growth rate with China's high one, many experts believe that in democracies, growth must be slow — but steady — and eventually very strong. Is India’s moment of very strong growth arriving?

Narendra Modi of the seemingly right-leaning Hindu nationalistic party, BJP, is widely expected to be the next Prime Minister. Before dissecting Modi — to understand the current nature of Indian sociopolitical thought — let’s have a look at a recently emerged party that came out of nowhere aspiring to rule India, won a major election, but then slipped and broke its back, and ended up playing a major role in crystallizing Modi’s prospects.

That new party is the Aam Aadmi Party(AAP). Its key proclaimed interest has been reducing corruption in India. They would like to install a massive new government department with tens of thousands of new bureaucrats with “impeccable” integrity to oversee the conduct of the (rest of the) government.

The more complex a society becomes, the more it needs decentralization of power and the free market.

Those with any experience of India know that it is virtually impossible to find a single honest bureaucrat; moreover, you must constantly deal with extremely dishonest people in the society, which seriously lacks work ethic and integrity. One must struggle with dust and dirt everywhere, for cleaners don’t clean and sweepers don’t sweep. Nothing is done properly, but with expediency and a patch-up mentality. The environment is a disaster. Any concept of quality is conspicuous by its absence. Offering extra money to workers does not help; it merely results in more skipped days. Animals rot and people wallow in filth and disease. Only someone utterly lacking in empathy would not weep at the lack of dignity that even animals must suffer. I wept today, for I failed to get even my servants to treat our dying dog with some basic decency. The vet does not see any value in protecting his eye before spaying antiseptic on a wound right next to the eye.

Can Indians conceptualize what corruption really means?

AAP made a lot of noise and demonstrations against corruption and came to power in the state of Delhi in November 2013. A lot of young and middle-aged educated acquaintances of mine support AAP. They shout against corruption. But then a moment later they have no problems giving a bribe, not only to get a passport or a driving license, for which bribes are necessary, but also to gain an unfair advantage over others. They will worship a cow, garland it, and offer it freshly made food, prostrate themselves before it, sing religious hymns, and lovingly caress its neck. Then soon thereafter, once the ritual is over, pick up a thick, heavy stick and slam it hard on the back of the cow, to make it leave.

The biggest voting block of AAP was the “educated class,” taxi drivers, and housewives. You must constantly haggle with taxi drivers in Delhi. “Anti-corruption” was the taxi drivers’ way to get AAP to stop the police from interfering and extracting bribes for overcharging. Middle-class women voted for AAP because it promised cheap or free water and electricity. These two segments had at least a partly rational, albeit dishonest, financial interest in mind. But the “educated class” failed to connect some very simple dots.

The anti-corruption movement (witness what “holy cow” means in practice, as shown above), was steeped in hypocrisy and irrationality. Deep thinkers might find this unbelievable, for to them it should create such massive cognitive dissonance that the protagonists would be forced to stop at least one pattern of action: either hit the cow or worship it. In reality, there is no dissonance, for such people process the world through pre-rationality. Even a very high-level education can survive on the foundations of irrationality, if what is learned is accepted as a belief, on faith, through rote learning.

AAP soon found that it could not meet the heightened expectations of the masses. People believed that anti-corruption was a magic wand to get free stuff. Moreover, they wanted others to stop being corrupt, but still wanted a free license to be corrupt themselves. The AAP government fell a mere 49 days after coming to power.

Indians now want a strong leader, the latest fashion among voters lacking in rational moorings and a symptom of their keenness to deify someone, hoping to generate top- down growth without effort, on this occasion through leadership rather than any reduction of corruption.

The history of post-English India has shown that the country has done best when its government was weak. Two Indian prime ministers, Indira Gandhi and her son Rajiv, were assassinated in the ’80s. That left the federal government very weak. This weakness, along with a few other circumstances, helped entrepreneurs unleash business activity in the early ’90s. But that lasted just a decade. Socialism reared its ugly face again, for India had never addressed its fundamental problems. It liberalized for a decade, not so much because it saw value in doing so, but because it was cornered into a place where it had no other choice.

The rudderless system that was by default moving in the right direction has now been adrift again for a decade.

Today, the work ethic is weaker and corruption is worse. A decade of distribution of free TVs, bicycles (which can be sold off for alcohol), free grains, and guaranteed government work at higher-than-market wages means that it has become difficult to find workers. With a very high level of uneducated, untrained, mostly rural people, the last thing India needed was people who did not want to work. A heavy sense of entitlement has set in, worse than what was there before.

India’s failure to comprehend causality results in its doing more of exactly what made it a wretched place.

Even in respect to very basic goods, the Indian market is flooded with products from China. While economists might claim it makes no difference whether the economy is oriented toward service or manufacturing, the reality is that factories help society become more rational, for the workers can visually and mentally experience what causes what effects. It teaches them rationality and a sense of causality.

Now to dissect Modi . . . Narendra Modi, chief minister of the state of Gujarat, is a product of identity-lacking, rich, nationalistic, Indian lobbyists in the US. They prefer a romantic relationship with India — from a distance. Gujarat has done relatively well. But that is not because of Modi, but because of the fact that Gujaratis are all over the world. They have brought capital and competencies into Gujarat over the past two decades, in the way that Chinese in Taiwan and Hong Kong brought them into China. Gujarat is a relatively entrepreneurial place anyway, and a reasonably safe place too.

Gujarat would have done relatively well even without Modi, and perhaps much better without him. Alas, Modi has been able to claim credit for growth in Gujarat. He has found a sympathetic place in the hearts of those — particularly in the West — who are worried about Islamic fanaticism.

Under Modi’s government there was a massacre of 2,000 Muslims in 2002, while those in his party roamed around the street unhindered, with impunity. Men were killed, pregnant women’s abdomens were slit open to remove their fetuses, and children were burned alive. Girls were raped and then mutilated. Houses were burned. The US still blacklists Modi for a visa, for his “alleged” offenses. Europe has only recently allowed him in.

Modi will prove a very divisive figure in a nation where 13.5% of the population is Muslim. People will soon realize that he has no magic wand to set India on a path to progress. A strong leader cannot create wealth, even if he were a good guy. Wealth must be created through hard work and systematic thinking.

Technology is advancing very rapidly around the world. Society, as a result, is becoming extremely complex. Any complex system needs distributed intelligence. The more complex a society becomes, the more it needs decentralization of power and the free market. Otherwise, stresses will keep building up in unknown corners of society, to blow up the brittle, totalitarian political structure. India certainly does not need a strong leader.

Indians have very superstitious and irrational ways of processing the world. For now, India’s social problems are increasing. India’s failure to comprehend causality results in its doing more of exactly what made it a wretched place. Perhaps the slow buildup of stresses in the system will make the political system implode one day, starting the process of letting people see causality.

But I hope that Indians — in whatever shape the country’s political geography takes — will one day realize that growth, peace, humanity, spirituality, and prosperity cannot be founded on a strong leader, but on a society of rational, free-thinking individuals with character.




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Critical Thinking

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Government is the froth that floats on the surface of a fluid. That fluid is the culture. The dirtier it is, the dirtier the froth it generates.

As a kid growing up in India, I always found that local goons, tyrants, sociopaths, and freeloaders emerged spontaneously, almost in direct proportion to the quality of the social environment in which they appeared. If you got rid of them, they soon reemerged. There was no way to avoid the emergence of goons, unless the underlying culture was addressed. This was invariably true, even if a vast majority of people opposed those goons, for the existence of goons is correlated not with people’s conscious views about them but with people’s own character, with the general culture.

As American society degenerates, its politics degenerate in direct proportion. Improvement in culture must precede any improvement in the quality of our politics. I have no prescription for how to improve the culture, but I do have an opinion about how people are mentally enslaved.

I have been to about 60 countries and have lived in four of them. Other people travel the world to see the world. I travel the world to use it as a mirror, to understand myself. Twenty-three years ago, when I left India for the first time, I decided to stop eating Indian food. I stopped having Indian friends. I did not want to have anything to do with India. I hated it.

Alas, I have left India but India hasn’t left me. I am still recovering from the indoctrination, conditioning, and irrationality of the culture I grew up in. This has been the case despite the fact that I have revolted against authority and irrationality for as long as I can remember. That is the grasp of indoctrination on the psyche.

Government is only a symptom of the problem. The real problem is within the society, which is extremely superstitious and irrational.

People often think that the problem of India is its government. Sane investors and Western institutions keep insisting that India should focus on some very simple, basic issues: build up infrastructure, make the bureaucracy more responsive, control inflation, remove unnecessary regulations, provide better schooling and primary healthcare, and better law and order. They believe that addressing these issues would have an extremely high-leveraged effect on the Indian economy. But while these policy suggestions appear simple and rational, they never stick.

Even in these days of technology, more than 50% of India’s population has no access to toilets. People must go in the open to defecate. A rational investor might think that investment in some very basic communal sanitation would yield significant results in months, if not weeks. But this never happens. The same rational person has been saying for over two decades that given democracy and an English speaking population, India will eventually overtake China. The reality is that not too long back India had a higher per capita GDP than China. Today, an average Chinese is four times richer than an average Indian. And the Chinese economy continues to grow much faster than the Indian.

The problem is that the so-called rational person, often blinded by political correctness, looks at India in a very superficial way. He fails to understand the philosophical underpinnings that guide the Indian society.

The situation is not too dissimilar to that of a health fanatic suggesting to an obese person that he must reduce his sugar consumption and smoking. To the fanatic, the prescription looks easy and simple; to the obese person, it does not. It is hard for the prescription to stick unless the obese man addresses his deeper problems. Moreover, if the fat man does stop consuming sugar and smoking, the health fanatic will soon be likely to discover that the target of his advice is now consuming other bad things — more alcohol, more carbohydrates, more something. For the problem truly to be addressed, one must go to the source. Similarly, what look like simple policy prescriptions that India must follow consistently fail to produce results.

The problem of India is not its government. Government is only a symptom of the problem. The real problem is within the society, which is extremely superstitious and irrational.

A lot of what you and I perceive as corruption is not what the Indian society sees. Morality is relative, and mostly based on expediency. There are common expressions in India such as “you can only scoop butter with a crooked finger,” which is basically a rationalization for crookedness. Another is that “Dharma [religion] is for the temple.” This suggests that you can forget about morality once you are outside the temple precincts. Indeed, India has never been through the age of reason or the age of enlightenment. In many ways the mindset is still very medieval. It is grossly lacking in rational philosophical anchors. To top it all, Indian culture seriously discourages critical thinking, thereby ensuring that dogma and superstition stay in place.

One of my earliest memories is of being slapped by my teachers for asking questions.

In a relatively capitalist country such as America, rational people can see what causes what effects. The more socialist a society becomes, the more the path from causes to effects becomes convoluted and difficult to understand. The minds of those who grow up in such a culture are an entangled web, embedded with corrupted instincts. If you become aware of your own mental tangle — which is very, very unlikely — and you try to undo the damage, you cause yourself more mental difficulties, because every thinking pattern that you try to straighten out conflicts with several others, and you must suffer for decades dealing with it.

One of my earliest memories is of being slapped by my teachers for asking questions. During the winter season, my school, instead of starting later in the morning, started even earlier. In winter I had to wake up at four in the morning, for no apparent reason. If we enjoyed any particular subject, the teachers ensured that the enjoyment would not last. They would beat us for exactly the same reason that led them to praise us on another day. If one kid did something wrong, the teacher would beat everyone. To avoid this, if you told the teacher who was the wrongdoer, she would beat you for snitching. And then of course we could be beaten for not snitching, on a later occasion. This is not just about the teachers but about how people in the surrounding society interacted with one another.

You grow up utterly confused and cloudy in your thinking, with an uncertain sense of causality. Your mind then becomes capable of absorbing all sorts of garbage, irrational and contradictory beliefs, and superstitions. Your eyes and senses no longer experience the truth as they are designed to see it.

You are forced to respect authority, not virtues; and the result is you become incapable of differentiating between right and wrong. You become extremely gullible. You speak what sounds good, not what is true. Speaking the truth for the sake of speaking the truth was a revelation to me when I arrived in the West. Our elders told us always to speak the truth, in the same way in which they gave us the concept of not worrying about the concept of morality outside the temple, and we parroted the saying, because it sounded good. But it had no significance apart from making us hypocritical. Critical thinking was washed away in dogma and authority.

The system cripples you mentally. Even if a vast majority of superstitious and hypocritical people consciously oppose the state and how it is run, it will still exist, for the anti-nutrients that feed the state do not come from people’s vote but from their character.

Adults face the same system as the children. A collectivist system — as in India — detaches people from the consequences of their actions. The feedback people receive in their interactions with society contradicts the truth of how the world works, because the costs get socialized while the gains do not. Trickery and heavy handedness seem to work, with those at the receiving end having no recourse to retribution. Bad behaviour goes unchallenged and never registers in the core of one’s being as “bad.” Real wealth creation in such a system feels like an unnecessary hassle with little economic advantage to be gained from it. From an individual’s point of view, time and capital may be better spent elsewhere. Political connections and “bribes” look like much more efficient ways to make money.

You become dull, apathetic, and mostly non-thinking. A trillion fights keep happening in your brain, with no rational means of resolving them. You are left with no confidence, because everything you see or believe is a floating abstraction, often in conflict with what your senses appear to tell you.

Indian brains are imprisoned by authority, American minds by political correctness.

It is important to distinguish the collectivism of Mao’s China from that of India. In China, the individual and his survival was in conflict with the state. In contrast, in the case of India, collectivism has been made a part of the individual’s DNA. In such a society, what individuals tend to do is exactly more of what created the original problem. Indians are very impervious to rational suggestions, and one must expect to face massive verbal attacks if one tries to extricate them from their mental slavery.

Judging from the way in which societies have historically worked, at one point India must collapse under the weight of its irrationalities and break into smaller pieces. Of course, this transition will not be easy and not without huge strife. Some of it has already been seen in the religious strife that rent the country at independence, and that still manifests itself, sometimes in acute forms.

Some might think that what happens in India will never happen in the US.

To respond to that I must again go back 23 years, to the time when I first arrived in the West. The airport was a happy place. The immigration officer addressed me as “Sir.” I looked around to make sure that he was addressing me. How could a government officer not treat me like garbage? In those days airport security was courteous and prompt for most Western people. But what would have been impossible to imagine then is now common and acceptable. Security now has no inhibitions about asking even old ladies to strip off their clothes. And alas, people gladly do that. In Canada, where you don’t have to take your shoes off before going through scanners at airports, most people do anyway. In just 23 years, I have seen North Americans increasingly groveling before the ever-more-mindless bureaucrats.

Western people endlessly worry about real or perceived discrimination. They worry about segregating their garbage and about ensuring that they buy so called fair trade coffee. They discuss the issue of sweatshops in faraway countries, about which they have absolutely no clue. “Everyone should have the right to free healthcare and a living wage,” they say. Political correctness forbids Americans to discuss any possible fallacies in these one-dimensional views.

How the Indian grows up muddled in thinking is different from how the American psyche is being muddled — but assuredly it is being muddled. In India we were made unreasonable by fear, irrational feedbacks, and mental self-numbing. In America, the self-esteem movement wants adults to provide “positive feedback” to kids even if they are not doing well. Doesn’t this confuse their understanding of causality? Aren’t they made irrational, in a feel-good way? Through love and warmth, kids in the West are, for instance, induced to swallow politically correct positions on the environment — something they don’t have the data or the competence to understand. Doesn’t this impede critical thinking? Indian brains are imprisoned by authority, American minds by political correctness.

Orwell’s 1984 is likely the later stage of collectivism, as is the case with India, but Huxley’s Brave New World is likely the earlier stage, as is the case in the West. The mental virus that afflicts Indians now increasingly afflicts those in the West.

Apathy has rapidly sunk its deep roots here. What is happening to Edward Snowden and Bradley Manning has been reduced to an orgy of public entertainment. Irrespective of the merit of their cases, should Snowden return to the US to face “due process” when Bin Laden was killed and dumped in the ocean and when the prison at Guantanamo Bay continues to run? Similar cases a few decades back would have probably have brought a change in the US government. Even civil libertarians talk about why the NSA should not be spying on American citizens or why the president should not have the right to pass executive orders to kill Americans. But, what about non-Americans? Are they not human beings? Are their lives and privacy not important? Try discussing these issues, and Americans will start going around in circles and start responding irrationally, not unlike the way Indians do. “Due process” and “the rule of law” were seen as very fundamental to the Western civilisation. In an era of expediency, they are still much talked about but are getting increasingly diluted in their moral essence.

Americans are impressed when they hear that many women in the poor parts of the world do not have a sense of self or of an independent existence. They do not reflect that they themselves are slaves for more than half of their lives, paying taxes and following stupid regulations. They fail to see any connection. It is so easy to see the slavery of other people but not your own.

Collectivism is increasingly present in the DNA of those in the West. Individuals in the West are likely to keep doing more of exactly the same things that created the initial problems, slowly retracing their steps, back to the medieval period. Will the West become another India? I would not be surprised at all.

It is so easy to see the slavery of other people but not your own.

Obama and Bush, however criminally minded they may be, are only symptoms of problems. The problem lies in the current state of the Western culture. In my view the danger is not the tens of trillions of dollars of Western governmental debt but the process of cultural degeneration in which reason and evidence are replaced by dogma and unverified belief systems are protected by a lack of critical thinking.

Lack of liberty is the result of a lack of freedom within our minds. Our conscious search for liberty will be futile if we fail to address our deeper mental constructs. Only a rare human being would claim not to want to be free, yet many people who claim to want freedom exist in wretchedness and slavery. The good thing is that bureaucrats and politicians, the purveyors of collectivism, are often lazy and stupid. They have no power that the culture does not give them. They will wither away or take to begging on the streets if we as people give up the virus of irrationality and take to critical thinking.

/div




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