Rewind. The real devaluation last week

There is a serious devaluation that has been happening, but not getting any attention. While the Chinese currency was in the limelight, the devaluation of parliamentary democracy, by childishly obstreperous behaviour by MPs — which resulted in the monsoon session of Parliament being concluded without any major business being done — is the real cause for worry.

There are far too many important decisions for the lawmakers of our country to focus on, as pointed out below, than that of Lalit Modi. The world thinks of the future, whilst India grovels in its murky past.

If we are to progress as a country, this sort of atavistic behaviour needs to be controlled. The only ones capable of reining in MPs are the ones who elected them, the people. It is time that the people sought, and obtained, a right to recall MPs. If a petition with, say, 10 per cent of the voters of an area, is submitted seeking to recall the MP, there should be a process to ensure a referendum to vote on it.

What should the MPs have been debating? The impact from China’s current situation on Indian commodity prices, for one. China consumed 40 per cent or more of several commodities, including steel, cement and copper, used for its boom in housing and infrastructure. This led to overcapacity. The collapse of the stock market only exacerbated the fall in domestic demand. China produces half the world’s steel, and because domestic demand has fallen, it is exporting it at prices which other manufacturers like Tata Steel cannot compete with; in January-July it exported 62 million tonnes of steel (more than the production of the number two producer, Japan). The MPs could have discussed how to protect domestic steel companies, and jobs. Instead they discussed Lalit Modi.

Or they could discuss the future of coal, the source of 59 per cent of India’s power production. Globally considered a dirty fuel for its damage to the economy, and under legal obligations to reduce pollution, coal mines are being phased out.

Sumitomo sold its 50 per cent stake in an Australian coal mine, entailing a $420-million loss in three years. Alpha Natural Resources, the number four coal producer in the US, filed for bankruptcy, and is to be followed by number one and two.

It is inevitable that global pressure would bear on India to reduce emissions in future. MPs could discuss alternative energy supplies, especially renewable. Instead, they discussed Lalit Modi.

One attractive alternative is solar power, for India is blessed with sun. But in its quest to hit a target for solar power, the government ought to be careful with what incentives it offers. Masayoshi Som of Softbank wants the government to tweak its policy in order to give him a guaranteed offtake of all power generated and a Union Government guarantee for a return in foreign currency.

This was the sort of deal that Enron entered into, and led to a legal dispute later as it was not in India’s interests. Do we not learn from experience? MPs should have discussed this. Instead they discussed Lalit Modi.

Or, they could have discussed how driverless cars will affect urban design, since India plans setting up 100 new smart cities.

Driverless cars, on a shared basis would reduce car population on the road. Are Indian auto makers preparing for this future? Fewer accidents will lead to lower premiums, and affect insurance companies’ cash flows, and, according to Bloomberg, threaten their survival. With fewer cars plying, road space and city space would be released for other uses, which MPs should discuss. Instead, they discussed Lalit Modi.

India’s job growth would come largely from infrastructure projects, and Prime Minister Narendra Modi is tapping sources of long-term funds, such as the UAE’S $800 billion sovereign wealth fund, and is tweaking the Bilateral Investment Protection Treaty (BIPA) for this purpose.

Why is he not concentrating on protecting domestic investors? Do they not deserve protection from scamsters like Sarada and NSEL?

Why is he not taking personal charge of these long-delayed investigations, delayed for obvious reasons? Without domestic investor support there is no India story. Period.

There is a marvellous India story, if the political leadership is patriotic and wants it. If they are not, they should be recalled.

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