Friday, March 5, 2010

Understanding Economics

General Theory of Reflexivity: Lecture


Open Society Institute chairman and founder George Soros shares his latest thinking on economics and politics in a five-part lecture series recorded at Central European University, October 26-30, 2009. The lectures are the culmination of a lifetime of practical and philosophical reflection.

Soros discusses his general theory of reflexivity and its application to financial markets, providing insights into the recent financial crisis. The third and fourth lectures examine the concept of open society, which has guided Soros’s global philanthropy, as well as the potential for conflict between capitalism and open society. The closing lecture focuses on the way ahead, examining the increasingly important economic and political role that China will play in the future.
[Source]

What I like in enormous winnings of George Soros, it is his push for emerging nations to become 'open societies,' open not only in the sense of freedom of commerce but—more important—tolerant of new ideas and different modes of thinking and behavior.

My amateur learning in Economics : Economics is too mathematical model done by technological student and neglecting risk and chaos. Neither any economic policy can ensure economic stability indefinitely nor any complex mathematical formulae could tame uncertainty. The probelm lies in an intellectual default within economics, but they seem oblivious of the role of ideology in producing this default. I assume that economics is insulated from the world not only by its narrow explanatory methodology but also because it rewards the mathematical modelling that resuls to bind the economics as a game of numbers & statistics.

Tuesday, March 2, 2010

The wind of freedom blows

1- What a country needs for development in a very long term ? Vigorous debate and absolute freedom of speech. And this makes America a great nation. The source lies in its first Amendment:

"Congress shall make no law respecting an establishment of religion, or prohibiting the free exercise thereof; or abridging the freedom of speech, or of the press; or the right of the people peaceably to assemble, and to petition the Government for a redress of grievances."

Atanu Dey puts his perspective very clear on comparison between America and India on free speech. The first amendment article and comments by readers form a very interesting read on this topic.

2- The Strange case of China and Russia: There is a denialism when an entire segment of society, often struggling with the trauma of change, turns away from reality in favor of a more comfortable lie. It has created a society where institutions are brazenly politicized, where violence has been legitimised, where the socialist state has been reduced to a narrow-visioned envy-filled individual whose dominant mindset is reverence of dead heroes and contempt for all contemporary success.

3- Pseudo Islamic countries like Pakistan falls to move towards the concept of democracy. Bernard Lewis states Islamic authorities have always had great difficulty in accommodating post-Islamic monotheistic religions such as the Bahá'í Faith, since the followers of such religions cannot be dismissed. Moreover, their very existence presents a challenge to the Islamic doctrine of the perfection and finality of Muhammad's revelation. What else can one expect from a society living in a curiously delusional state of denial, gleefully mistaking it as ‘patriotism’ and ‘concern.’ The problem with these countries is that they have people like Asma Jahangir is – they are hundreds of years ahead of their national consciousness.

Nadeem F Paracha put it as : Well, this is exactly what happens to a society that responds so enthusiastically to all the major symptoms of fascist thought. Symptoms such as powerful and continuing nationalism; disdain for the recognition of human rights; identification of enemies/scapegoats as a unifying cause; supremacy of the military; obsession with national security; the intertwining of religion and government; disdain for intellectuals and the arts; an obsession with crime and punishment, etc.

4- When a person migrates to the western countries, a new social riddle comes in the front of him. Either to be adopt in the melting pot society type structure or keep his motherland's intact with him. The 2nd generation dilemma of being dual nationality makes them to search for identity. Few acts of terrorism in the name of self righteousness also happen. This can be explained :

Generally coming from deeply conservative backgrounds, they are shocked with the free and easy lifestyle they encounter.Rather than encouraging their children to integrate, they seek to insulate them from Western values, thus causing a state of mild schizophrenia in second- generation immigrants.

Some of these young people become quickly radicalised, and seek clarity in the black-and-white world of religious extremism. Unfortunately, too many of them lack the education to realise that ultimately, no set of beliefs or values is inherently inferior or superior to another.

Morality, as we have seen, is not the monopoly of any faith: an atheist can be more ethical than a religious person. At the end of the day, what matters is that humans behave with consideration and decency, and avoid imposing their beliefs on others.

Sunday, February 28, 2010

Irrational Faith -3

Note: [You can read my view points about religion hereto get the grasp of my thinking. ]

There is a film named 'The White Ribbon' directed by Michale Haneke. He expressed his views on the themes of the film: " I was interested in presenting a group of children who are taught absolutist values, and the way they internalize this absolutism. My point was to show the consequences – that is, all sorts of terrorism. If absolutism is applied to an ideal, then that ideal, either political or religious, becomes inhuman. I had considered calling the film "The Right Hand of God." These children believe they are the right hand of God: they have understood the laws, and follow it to the letter. This makes them become the punishers of the others, who do not obey the same ideals. This is how the terrorism originates. The film should not be considered as a comment on fascism alone." [Source]

These lines cane be source of brilliant debates for any society ready for introspection. Still unconsciously, I put this line in real life analysis in the case of 'Islam' only. One line discussed about this movie will make my point clear. 'The seeds of deadliest emotions are there in a society that allows for nothing except goodness.'

This tendency of looking to absolute and abolish all badness through strict punishment exist in Islamic countries. Any liberal act in art, dance , woman rights and minority rights is highly condemned by priestly clan in the power. Middle class in any Islamic countries are not strong enough to adopt the modern political ideologies of west like democracy, secularism, religious diversity and liberalism at a national level. Hence, the Islamic state has lost its authority to challenge the semi-literate & close minded maulvis who do more harm than good.

Excessive importance to religion and its principles is a hindrance in the expansion liberalism and tolerance, where individuals do not give undue importance to religion. It is not easy for any nation to contend with religious bigots and fundamentalists who are forcing on imposing the socio-religious ideology of middle ages on the society in 21st century.

Let us take few countries in analysis. Iran is a more democratic in all Islamic countries at grass root level with power held by clerics. Pakistan, Egypt and Turkey have military backed secular state model. Saudi Arabia is feudal state divided between tribes which does not hold any respect to human rights. And, such Islamic countries are way ahead in corruption index despite of imposition of laws based roughly on Sharia laws.

Ataturk tried to change his country through dictatorship but it shows wrong signals across other countries. Military approach can't solve the civil society problem. The days of revolution are gone. Unless you know how to govern a country, you cannot bring about peace in a country. The failure of Islamic countries on free voice is the major cause of their degradation in cultural and scientific fields. The failure to learn from our past mistakes and “blame India, Israel, America or West” mindset deny them from doing something constructive. And they fall as a pawn in the world politics.

The lack of progress in science and democratic values depicts the mentality of ruling class. Force, however strong, cannot and should not have the last word on any general consensus of the people. For the empowerment of democratic forces in any nation clear cut demarcation between religion and politics is necessary.

To give up power to majority is not easy task, it requires moral courage. Other countries with Christian, Jewish and Hindu population were able to do that because there leaders choose liberal values and democratic reforms for masses. I always admire J.L. Nehru despite of all controversies surrounding him. It was his autocratic rule without becoming Cesearian type that makes India what it is today. He saved us from becoming Hindu Pakistan.