Bumps ahead

Realised some days ago that a bunch of hyperlinks on frac/earth are not working. Correcting them now. My apologies for this. If there is any article you need access to, drop me a line. Things should be working fine in a week or so.

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On the six factors which cumulatively added up to India’s unprecedented cash squeeze

India’s current cash crunch is a real enigma.

To begin with, there is its sheer unprecedented nature. In all the years since Independence, India has never seen something like it. “We have heard of coin shortages but never a cash shortage,” said MS Sriram, visiting faculty at the Indian Institute of Management-Bangalore’s Centre for Public Policy. “I certainly have not in my life. This is new.”

How the shortage played out is odd too. It is acute in some states but not in others. For instance, in Tura, the largest town in Meghalaya’s Garo Hills, an official at the main State Bank of India office, which disburses cash to the bank’s other branches in the region, told Scroll.in that cash reserves had dwindled to almost a fifth of the required amount. “There is pressure from other branches to release money, but we have not been able to give even half of what they have been demanding,” the official said.

A clutch of other states – including Bihar, Assam, Maharashtra, Telangana and Karnataka – are facing shortages too. But states like Delhi are less affected.

The discrepancy is visible within states too. In Maharashtra, Mumbai is fine but Nashik is not. In Tamil Nadu, big banks in Hosur say they are getting all the money they need but their counterparts in surrounding villages say the situation is bad. “We contact our sister branches to see if any of them has surplus cash,” said the manager of a public-sector bank in Belathur, a village about 20 km west of Hosur.

There are other puzzles. The cash squeeze showed up not gradually but suddenly. Reports began coming in from several states from February. If the cash squeeze was only due to a growing mismatch between cash supply and the demands of the growing economy, it should have shown up gradually, experts say.

As a report in Scroll.in noted earlier this month, several theories emerged to explain the shortage, covering the gamut from obvious to plausible to off-the-wall. Shortly afterwards, several Scroll.in reporters fanned out across the country, speaking to people in both cities and villages, to try to identify the genesis of this shortage.

Here is what we found.

Out today, with my colleagues Abhishek Dey, Mridula Chari, Vinita Govindrajan and Arunabh Saikia, a more deeply reported piece (than the previous one) which seeks to trace this cash squeeze back to its (idiotic) origins. Do read.

15 theories about why India is facing a cash crunch a year and a half after demonetisation

atms are again running dry in india. and theories claiming to explain why are doubling every day. out today, a quick report with my colleague rohan which seeks to separate plausible theories from the disingenuous (or just plain stupid) ones.

Amul federation could be soured by corruption charges against its oldest cooperative in Gujarat

On March 31, K Rathnam abruptly resigned as managing director of the Kaira Union, the oldest of the 18 cooperatives that market their products under the Amul brand name.

The announcement came shortly after some board members of the union, including vice chairman Rajendrasinh Parmar, alleged a Rs 450-crore scam during Rathnam’s three-year stint running the cooperative.

For their part, Rathnam and Ramsinh Parmar, the long-standing chairman of the Kaira Union, said the resignation was a routine matter. Rathnam, 55, told The Indian Express, “I have given Amul 22 years of my life. Now, I wish to spend time with my family that is settled in Tamil Nadu and America.” Both said talk of corruption was politically motivated.

Two weeks later, as public attention has gradually moved away, the contradiction between these claims and counter claims has not been discussed much in the media. In the process, urgent questions about the functioning not just of the Kaira Union but also the Gujarat Cooperative Milk Marketing Federation, which coordinates the Amul cooperatives, are slipping under the radar.

Part two of the report, out tomorrow.

And now for something completely different

Earlier today, my friend Rafat sent over snaps of some of our earliest reportage. This is circa 1998, from our first job at now-shuttered A&M, India’s first magazine on advertising and marketing. Am pasting them below and noting – with much pride and approval – the pun in one of these headlines, for a report on a tieup between an ad agency and pr firm. 🙂

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Power. The ignorance it engenders. And some photographs.

Towards its end, “The Post”, Spielberg’s film on the Pentagon Papers, says: “The role of the press is to serve the governed, not the governors.” Which makes one think. Who are these people we are meant to be serving in India?

Take a look at the snaps above. These people — belonging to Mizoram, Odisha, Punjab, Bihar, Arunachal Pradesh, Tamil Nadu and Gujarat — were photographed in the last three years. So much of our policy debates play out in their name. And yet, how little we know about them. And how static/outdated even that limited awareness is.

Some of this is about distance. Out of sight equals out of mind. Ergo, the periphery gets far less attention than what surrounds the centres of power.

And some of this is about power. As Brett Walker writes in The Lost Wolves Of Japan, “Power engenders a peculiar kind of ignorance: dominant humans almost never take the time to really get to know the peoples, plants, and animals they subordinate”. A curious drive to diminish is at work here. As Walker writes, we rejected the notion that flora/fauna might have their own emotional lives — reducing them to just gene-directed automatons. They come to be seen, not as discrete individuals, but as a broadly similar category. Which is something that Barry Lopez writes about in Arctic Dreams. About how the Inuits knew the personalities of every caribou, seal and what have you around them. Killing any of these, for them, was a far more considered process than it is for any big game hunter.

With biodiversity, some of this is due to a resetting of power dynamics between us and other species; some of this is due to how our thinking changed (more focused on what can be measured, for one, keeping the scientific method in mind) after the enlightenment; And partly, as in the case of Japan’s wolves, is about economic imperatives trumping old cultural systems.

As Walker writes, such diminishing, for want of a better word, extends to humans as well. We see it every time a demagogue wants to stoke up bigotry. The process starts by reducing their targets to broad categories — reducing flesh and blood individuals to identity markers (like Jewishness or Islam or the colour of their skin or caste) they cannot transcend. We also see it in governance. An instance: Back in 2011, when the Planning Commission wanted to delink minimum wages and the National Rural Employment Guarantee Scheme, activists organised a workshop in Delhi where they called Montek Singh Ahluwalia for a discussion. The audience? Mostly NREGA workers. Faced with the task of explaining to the workers why they should get less than the minimum wage, each of the visibly discomfited bureaucrats said their piece in English — and then left instead of staying for the discussions.

So much easier to clinically discuss workers/poor as an abstract category defined through a couple of traits than see them as real, living people.

There are questions here for us reporters as well. This stuff about our immediate context determining our priorities raises questions about us knowing whom to serve. A related question takes us further beyond. How does one serve? Report without knowing much about these people, or the latest forces acting on them, and the risk of us mischaracterising the problem/fighting the wrong battle cannot be ruled out. Take one instance, is today’s agrarian crisis in India is the same as the agrarian crisis we faced ten years ago? Or are there subtle (or large) differences?

Journalism is a knowledge producing trade. It needs method — if we are to capture a representative slice of whichever emergent process we report on. Ignore such questions. And we will end up with journalism with unchanging — and increasingly irrelevant — analyses which cannot do good.

Which is why India needs far more local reporting. For deracinated hacks like me, one answer, I guess, is to keep doing periodic deep dives into the field to update our understanding re the issues we write on. Essential given the rapidity with which societies change.

Another, I think, is to maintain a certain watchfulness towards how our brain arrives at its conclusions. To be aware of the cognitive traps we carry with us. And to work correctives for those into our reporting/writing process. To get time/freedom to report. And to read more — especially about the unknowns.

PS: I am blogging more than before. I used to when this blog was hosted at http://www.fracturedearth.org. And then, I got busy and the blog just became a place where I aggregated links to my reportage. Trying to change that now.