Category Archives: Public Policy

A suggestion for addressing the root-cause of this financial crisis….from a (humble) Banker who has experienced it firsthand

One of the fundamental reforms that is nowhere to be seen on the horizon…that I believe is absolutely critical to addressing one of the key root causes of the current crisis of confidence in the global financial markets is the lack of any significant education on the topic of personal finances and money management in middle/high school and college curriculums worldwide, including in the US.

So here’s my idea Mr. Paulson and (hopefully future) President Obama: add a mandatory requirement that every middle school, high school, and college student in America get a basic education in how to think about personal finances (budgeting, money management, borrowing, net worth, financial ethics etc.). The long term benefits of such an addition to educational standards in the US and other countries would be invaluable.

I am regularly amazed by how little formal or informal education any of us receive (unless we have very diligent and focused parents with good personal financial habits…a rarity) on the topic of money. Yet, understanding money and making/managing it (in whatever quantities “work” for each individual) is critical for the achievement of personal success and happiness.

Fighting and debating the wrong “war”

I find myself quite uncomfortable with the near consensus I see in America today (as reflected in the media and recent policy coming out of the House and Senate) on the belief that “the war” on terror is going poorly, and the answer to this problem is for America and the world to pull out and leave the Middle East to solve it’s own civil and societal issues.

My two main contentions/concerns are as follows:

1. I feel everyone is missing the forest (the real war), as they are focused on the trees (Iraq, and sometimes Afghanistan). The war, and I do believe, we are in the midst of “the third world war” is much broader than just the conflicts in these 2 countries….and I fear “pulling out” of Iraq, may reflect a broader pull back on any sustained attack or defence against the root cause of the war….which I believe is largely, if not fully, unaddressed today (more than 5 years after 9/11).

2. The real war we have is not a physical war at all. It is a virtual or mental war….a war of beliefs and values (largely Islamic beliefs and values on key issues, but broadly religious fundamentalism and the violation of basic human rights using religious beliefs/edicts as a justification).

This real war is the ultimate untraditional war. Yet, the world has largely responded to it with traditional tactics….i.e., physical attack and defence. Hundreds of billions of dollars have been spent already, on physical conflicts in both Afghanistan and Iraq. Imagine what this money could achieve if appropriately redirected into fighting the real war….the war of beliefs.

I think it’s time to take a step back, somehow firmly but fairly extricate ourselves out of Iraq over time (I know this in itself is a huge issue, but I’ll leave my thoughts on Iraq specifically for a separate discussion. I will say I think it’s key despite all the past mistakes….to leave Iraq a much better and more peaceful place than it was and is), redefine and understand the real war against terror, and get cracking using more “untraditional” means such as economic policy, incentives, education, TV and the internet, opportunity and basic common sense and logic….to help the muslim world adopt a more moderate version of their religion (as has happened with other religions, including Christianity over the past few hundred years).

It won’t be easy for people to ignore the actual words from the Quran that are used by some to justify killing, discrimination against women, and other inhumane and backward practises….but this is religion….and muslims must adopt moderating changes themselves after debate and discussion….if they are to retain their pride….which is paramount when you are talking about religion and culture.

How the middle east will be liberated

Ultimately, I believe true ‘liberation’ and ‘freedom’ for the oppressed in the middle east (those that are denied opportunity and freedom….particularly youth, women and children) will have to be achieved by the people in the middle east for themselves.

Perhaps I am biased, being Indian (given our history of achieving freedom from the British through struggle). This freedom will be achieved on the ground over time with education, knowledge and a taste for how it feels to be able to determine one’s own future. Check out this great article from last week’s Wall Street Journal. To me, the media is the most important tool in helping bring information to people….so their own minds and hearts are changed. We should be spending billions on this….not mere millions. Look what TV, knowledge/information and opportunity have done for post-liberation India!!
Lastly, to clarify, I am talking about true internal change….not just a change in the broad, high level framework of government (which the US has facilitated in places like Iraq). The high level framework too is important…but not nearly enough in an of itself.Liberty TV

By KENNETH Y. TOMLINSON
May 6, 2006; Page A8

In recent weeks, we’ve heard a great deal in Washington about how we ought to be broadcasting to Iran. But it might be instructive to examine what U.S. international broadcasting is already doing.

Very recently, on a Persian-language satellite television broadcast from the United States, the people of Iran learned that Iran’s oldest and largest student organization, Tahkim Vahdat, urged the government to suspend uranium enrichment and to cooperate with the international community by restricting nuclear development to peaceful uses. The group called the government’s behavior “irrational and confrontational.” Needless to say none of this appeared in Iran’s government-controlled media; few rulers on earth exercise the degree of censorship enforced by the Iranian government.

Another program featured the story of Hossein Derakhshan, once jailed in Iran for starting an Internet blog. Upon his release, he managed to get to Canada where he now runs the most popular blog — in Iran.

Or consider this exchange that occurred on our nightly Persian-language news and current affairs program on the Voice of America.

Moderator, Ms. Setareh Derakshesh: “Our guests today are Mr. Bijan Kian, a businessman associated with the American Council on Foreign Relations, and Dr. Abbas Maleki of Sharif University in Tehran, who is currently a Harvard Research Fellow in the United States. Dr. Maleki, how do you see the possibility of direct negotiations between Washington and Tehran on Iran’s nuclear policies?”

Dr. Maleki: “From the beginning, direct talks have been part of Iran’s agenda. From Iran’s point of view, the nuclear issue is not a real problem. This is part of the overall process of development which is going on in all parts of our society, like nanotechnology, biotechnology, IT and so on . . .”

Mr. Kian: “It is amazing to hear about such claims as progress in nanotechnology in a country where there is widespread unemployment, poverty, drug addiction, prostitution, so many women’s issues and, finally, political repression and coercion. The real dispute is not between our two countries. It is between the Iranian people and the government of the Islamic Republic . . .”

Dr. Maleki: “Well! Using polemic language and slogans talking about political coercion is very easy. Even in the U.S., that technologically speaking is the most advanced country in the world, you still have poverty everywhere, unemployment and so on. Tehran is so much cleaner than New York. You can go and check the trash-ridden streets of New York. Go and have a look at poor people there. . . . Just look at the war in Iraq and Afghanistan and now this atmosphere of war the U.S. government is creating about Iran . . .”

Ms. Derakshesh: “Dr. Maleki: The majority of the people in Iran live under the poverty line — and Iran’s prisons are filled with political prisoners . . .”

Dr. Maleki: “Excuse me! You are the moderator yet you are passing a wild judgment.”

Ms. Derakshesh: “This is not my personal opinion, sir . . .”

Dr. Maleki: “Whose facts are these, where did you get them — that there are political prisoners in Iran?”

Ms. Derakshesh: “These are facts reported by credible international human rights organizations.”

Mr. Kian: “Whenever we talk about what is really going on in Iran, what we say will be branded as slogans by supporters by the regime. I have to emphasize that the American government is not in favor of war with Iran. Just look at what has been said by President Bush and his secretary of state.”

* * *
In VOA and Radio Free Europe/Radio Liberty, the U.S. has a model illustrating how broadcasting news and information (i.e., the truth) can lead to the liberation of a people.

That certainly occurred in the former Soviet Union and Eastern Europe. Recognizing that fact, the U.S. Broadcasting Board of Governors moved to increase television and radio to Iran long before the current crisis in that country. In early 2003 we launched Farda, a round-the-clock, youth-oriented radio service to Iran. A few months later we began broadcasting daily Persian news and current affairs satellite television.

The television launch may have been modest — $1.9 million for 30 minutes daily with repeats. But we have come to recognize that satellite television is to the future what shortwave radio was to the past.

That daily program today is an hour (with repeats), and by September, thanks to better than $9 million from the Bush administration and Congress, we will be broadcasting four original television hours — with news, debates and call-in shows — daily. Funds in a supplemental now before Congress could increase these broadcasts even more — and strengthen our coverage.

Small satellite dishes are proliferating in Iran and there are strong indications that VOA’s nightly programming is becoming a staple for large numbers of Iranians. Telephone polling (which tends to undercount audiences living under repressive regimes) show that better than one-in-five adult television viewers say they regularly watch VOA’s satellite television programs.

As was the case with RFE/RL and VOA in the Cold War, it is important that our broadcasts are provocative — and credible. Intense journalistic supervision is critical to achieving this goal. Truth does not lie half way between the views of Washington and Tehran. But talk and debate programs give Iranians a taste of freedom — and enlightenment.

Ultimately, the future of Iran rests with the people of Iran. Just as in the Cold War when the people ultimately prevailed over their oppressors, it will be the people of Iran who will deliver their country from the tyrants who rule them now. To paraphrase Winston Churchill, we can give them the tools — information the mullahs don’t want them to hear and debate challenging the lies of mullah-sympathizers — and the people of Iran can finish the job.

Mr. Tomlinson is chairman of the Broadcasting Board of Governors, which oversees U.S. international broadcasting.

If you don’t know it, you can’t fix it? Unsexy but critical: Data/Metrics

I was reading an article about the french riots and the core liberal philosophy underlying french society and government. The french believe (rightly) that all people are equal and that race, color, ethnicity shouldn’t matter. As a result, they don’t measure any of their social outcomes by race, color or ethnicity.

No data on whether there are particular ethnic or racial segments of society that are having major problems? No way to fix these problems. If you’ve read the papers at all in the last few weeks, you know what I’m talking about.

Not sexy, but true (to me anyways). You achieve what you articulate and focus on. You fix problems you see. You improve metrics you measure and report regularly.

So why the hell is this the subject of a blog? Well, I’m not sure this is going to be a crowd-puller, but I was reading an article my boss sent me from the Wall Street Journal and I’m feeling validated (enough to share anyways!). The article is about Michael Walker, founder of the Fraser institute in Canada. A few snippets from the article which I totally agree with:

“A debate about government policy isn’t likely to be settled around values. But when there is objective measurement, resolution emerges”

“The dirty little secret of Canada’s single payer health system: that care is rationed through time rather than price”

“I firmly believe that you become what you think about, and that is as true for countries as it is for individuals”

Knowledge Creation

I just received my latest edition of the McKinsey Quarterly, a pretty interesting business journal mailed regularly to me by my former employer. I get about 6 a year, which I loyally place on a bookshelf at home for future knowledge seeking moments. But this one caught my attention: Fulfilling India’s Promise.

The various articles analyze (and offer a ton of facts about) many business/economic aspects of India: the view of foreign and indian executives, the indian consumer, marketing to the masses, when to make india a manufacturing base, india’s offshoring future, reforming india’s financial system, securing india’s energy needs, an interview with manmohan singh (the prime minister) on india’s economic agenda. the recommendations in the aggregate could transform the economy i.e., the lives of the population!

The sheer power of the knowledge creation I was witnessing amazed me. Echoing Gotham’s recent optimistic post, although problems do sometimes seem to abound, there are some things that are amazing about what’s going on in this new, developing, evolving world of ours!

Fitting yourself into a neat box: The problem with bundling opinions

Some on this blog have complained about the use of labels to denote ‘bundles of opinions’. Liberal. Conservative. Democrat. Republican. Gay. Straight. Pro or Anti-Hindu. These complaints struck a cord with some of the feelings I have on this issue. Why do we need someone else…a political party, a social group etc to tell us which opinions and views ‘belong together’?

I have a practical answer to this question: most people don’t have or want to take the time to think through how they really feel about each issue that is important to our society, particularly if their own life is ‘OK’ in that particular area. So, they align broadly with a group or party…and vote based on this broad choice, thinking most of the time they will vote ‘right’ (i.e., consistent with a more thought through personal choice on any particular topic).

This practical consideration, however, doesn’t make me feel better about the choices available, as I believe they significantly (and potentially adversely) impact legislation ‘on the margin’ (i.e., active legislation today).

A few examples:

1. Why does a pro-free trade stance belong with an anti-gay rights stance? Trade doesn’t have much to do with religion.
2. Why can’t you be pro-teacher and pro meritocracy and pay-for-performance in education (charter schools in America)?
3. Why can’t you be pro-Hindu (one of the greatest, and most flexible religions in the world!) without being anti-Muslim?
4. Why can’t you be pro-business and pro-gay rights or pro-choice? Who do you vote for if this is the case?

I think it’s time we started voting for issues, not parties!!

Capitalism: Imperfect, but our best available option

I can’t help but offer an alternate view to the ‘critique of capitalism’ posted here a few days ago. Many critics of capitalism (including the author of the post above) compare the outcomes of capitalism (quoting the various ills in the world today e.g., inequality) to an imagined ‘ideal state’ that has never existed in the history of the world.

I’m a realist, focused on practical executable solutions (i.e., what should we do differently based on what we have learned) and believe the current outcomes of capitalism should be compared to the outcomes of pre-capitalistic and non-capitalistic socieities and economies.

This, more real, analysis reveals that although capitalism is by no means perfect (there are winners and losers in capitalism, just as there have been winners and losers in the evolution of our world. I believe the role of government is to mitigate the brutal ‘survival of the fittest’ results of capitalism), it is by far the best option available to countries and socieities seeking to improve their peoples standard of living.

Just go ask any Indian who tried to improve his or her families lot in life in the pre-1991 ‘socialist-democracy’ era and who has been trying to do the same post the 1991 liberalization of India’s economy. I think the answer is crystal clear. Non-capitalistic societies end up being extraordinarily political, with power, opportunity and information controlled by a few. Capitalism is an objective, fair system with the best (although not perfect) outcomes. I believe the best answer economically is a capitalist economy, balanced by government supported equality of opportunity (as much as possible – e.g., by ensuring equal access to education) and government provided ‘safety nets’ for those that fall to the bottom of the totem pole in capitalism.

Value of life

The ‘value of a life’ is a recurring topic of conversation in our home. It has always confounded (and impressed) me how much americans value a single american life. I’m told a whole bunch of marines will go in and risk their life to try and save just one of their brethren during war.

I find this most fascinating, being part of a generation of Indians who grew up reading almost daily about dozens if not hundreds of deaths in Sri Lanka (the LTTE problem), Andhra Pradesh (the Naxalites), Punjab (the terrorism/secession problem there in the late ’80s and into the ’90s), Kashmir (you all know this one, I’m sure), Assam..and the list goes on (and this doesn’t even include violence outside of India!!).

There was nary a day when one didn’t hear of a ‘brown bag’ exploding and killing all the people on a bus…or some story similar to that. Most of us got used to this over the years, and became relatively immune to the violence and death.

I’ll blog some other time about my hypotheses on what drives this dramatic difference in how a human life is viewed in different parts of the world.

Today I’m wondering and thinking of how one values a dogs life?

Yesterday, our beloved Great Dane Lara got ‘bloat’ – a relatively common but life-threatening condition that large breed dogs (particularly deep chested ones) are prone to. Here, for seemingly no reason, the dogs stomach gets filled with gas and twists on itself. Immediate surgery is required to reverse the condition, and many dogs die either during or soon after surgery. Aside from the emotional stress and pain, there’s also the issue of expense. We’re $1500 bucks down already (for the surgery) and just dropped her off at a 24 hour hospital which is going to cost another $500 or so per night. We’re lucky that we can afford the expense, and she’s lucky that we love her like crazy…but it does bring up the question: how far do we take this? What is the value of a dog’s life? Here we are trying desperately to save this beloved dog, who we got from a rescue 3 years ago (she was already sick, and has had orthopedic problems since)….should we be saving a human life instead?

I’ll tell the dog-lovers before I sign off that despite all the debates and questioning, the path forward is clear. We’ll do whatever it takes to have some more time with Lara. She is special, with a gentleness and human-like emotional quality we’ve never found before. What if we weren’t this lucky and didn’t have this choice to make?

perception is reality

people, to me, are the most interesting and important thing in the world. priority number one, above work, above all the things i want to and need to get done in my life (in a macro sense, all said and done). personal relationships follow, then, as a key driver of my personal happiness and satisfaction…and people watching (and thinking about what i see) follows as an absorbing hobby.

so i’ve noticed, and often think about this: how we perceive a particular situation or incident seems to differ quite a bit from person to person. not surprising, i guess, since we view the world through the lens of our individual prior experiences and what we have personally learned through these experiences.

but perception, i believe, is reality (after all, our perceptions drives personal decisions and actions, which are real and tangible). but how can it be that there are over 6 billion people in the world walking around each with their own slightly and sometimes not so slightly different view of what’s real? isn’t the world we live in fascinating?

Information and Opportunity

I’m falling in love with blogging. I’ve never kept a personal diary, but always wanted to. The opportunity to share my thoughts (even if the line of thinking isn’t always ‘complete’ i.e., there’s no clean resolution at the end of each thought) and have others comment, provide feedback, and tell me theirs is invaluable. I can’t help but believe that over time, in aggregate, I will find more answers than I would have on my own. Certainly, I have already found a different kind of community.

So back to the theme of this one. I see information and opportunity as two of the key (if not the key) drivers of a lot of what I observe around me.

First, information: control of information is critical in most Indian families – information is power, and those in power limit access to information for those they want to keep less powerful than themselves. This could be husbands keeping wives less informed than themselves (a common occurance), the arab rich keeping information out of the hands of the common arab, the chinese government controlling information access to the common chinese…the list goes on. What we’re seeing globally is the loss of control over information. The media are key to this loss of control..the internet, print media, satellites, globalization etc. This is just the tip of the iceberg. I’m waiting to see what happens as the billions of Indians, Chinese, Africans and Latin Americans who do not have open access to information get it more and more over the coming decades.

Second, opportunity: I think the root cause of a lot of the ‘violence’ we see in the world is lack of opportunity. And I specifically mean economic opportunity – the opportunity to rid yourself of hunger, thirst, disease and other basic human needs. A person without opportunity has no hope. This is where faith steps in. Because religions brings back some form of hope (the hope of salvation, nirvana, etc). Lack of opportunity combined with lack of information leads to billions of people following the words of those who control them. Typically, this is religious and political leaders who promise some form of ‘light at the end of the tunnel’ if those listening do what they are told.

So how do we spread opportunity to those that don’t have it? And what role can an individual play in this?

Opportunity, to me, is the key to America’s dominant global position right now. I came here for it. So did almost everyone I know who wan’t born here.

I will be writing more on this topic over time as I think a lot of the public policy and foreign policy ‘answers’ lie in laws/policies/rules that in some way impact opportunity for the common man.

The missing link in education

Education as a topic is of immense interest to me. I have seen what it has done for India i.e., created an educated populace that was primed for the opening of the capitalist pump in 1991, and positioned to harness economic opportunity to create immense economic growth and social value for India and Indians (e.g., great accumulation of wealth in American Indians, increased living standards, more jobs, hopefully an eventual reduction in poverty).

But as I go about my day to day life and interact with people both at work and socially, I can’t help but protest at the missing link in education worldwide: the lack of education on personal financial management and communication skills.

I feel the average individual I meet is relatively unequipped in both these skill sets which I believe have a disproportionate correlation with personal financial and professional success. Shouldn’t we be lobbying hard to get these courses included in both at the high school and college level?

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