NOVEL--THE ELEVENTH HOUR

The Eleventh Hour by S.Hussain Zaidi ; Published by  Harper Collins ; Pages 247;     Price  Rs.299/-

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The  book under review is  a novel  by S.Hussain Zaidi, who has acquired name and fame in crime reporting. He is the author of several books including "Black Friday", "Dongri to Dubai", "Mafia Queens of Mumbai" and "Byculla to Bangkok". A number of his  books have been successfully transformed into gripping  movies. These  include "Black Friday", directed by Anurag Kashyap; "Shootout at Wadala", based on "Dongri to Dubai", directed by Sanjay Gupta; and "Phantom", based on "Mumbai Avengers", directed by Kabir Khan. 

Writing about Crime is so highly attractive that even the ex-American President Bill Clinton has penned one entitled “The President is Missing” along with James Patterson---it  is  focussed on cyber-terrorism and the efforts of a heroic President who disappears from the White House to thwart the danger. The novel has been crowned with success.

 Zaidi’s hero is a Superintendent of Police named Vikrant Singh who survived the 26/11 attack on Mumbai nine years before the action in this novel. The Policeman who is consumed by anger  slaps the High Commissioner of Pakistan when he meets him at a function. Though he is officially suspended he is requested—behind the scenes—to help the team that is in pursuit of the terrorists.

The plot unravels in a somewhat sluggish   pace after this dramatic beginning. In a striking incident , five members of the Indian Mujahideen escape from the Central Jail in Bhopal. In another part of the country, a retired tycoon, a heartbroken ex-soldier and a young woman dealing with demons of her own embark on a journey of self-discovery aboard a cruise liner from Mumbai to Lakshadweep. Fate, however, has other plans, and the cruise liner is hijacked. Passengers cannot believe such an eventuality and are left to wonder if they can survive. The Somali hijackers appear to be built and well-fed to be pirates. Who are they, and what is going on?

The cruise liner is a puzzle. Nobody seems to have a clue about the hijackers’ background and motivation, while the author’s focus on a few passengers suggests that they have an identity beyond the obvious. Among them is Vaishali, a charming young lady, who enjoys the company of an old man named Hakimi before falling for Daniel Fernando. A mysterious man is the team leader of the hijackers who have sophisticated weapons, thus revealing their preparedness.

There are some gaps in the telling  of the tale. Vikrant vanishes  for several pages at a time, and other characters who dominate in their respective subplots take over. However  interest  does not flag.

Most thrillers have set pieces and devices. There is a stash of RDX known as Cache ’93, which had apparently remained unused during 26/11 and has been concealed somewhere. While one can understand the presence of an RDX angle, what is missing is an in-depth explanation of the importance of Lakshadweep. One wishes Zaidi had  more to say on this.

 “Success will always come, even if it is at the eleventh hour,” one of the characters says. The  victory of good over evil is inevitable  and thus  the plot reveals the author’s grasp of the “Crime situation” having  at the forefront of crime and terror reporting for a long time.

The novel highlights  the crucial  role played by popular culture plays in structuring people’s understanding of political phenomena---like terrorism, intelligence agencies, and the creeping normalisation of a state of heightened paranoia where every citizen is recast into one of two groups either  anti-national suspect or patriotic helper.

It is astonishing to see Zaidi, one of India’s finest investigative journalists, resurrecting in popular fiction the very absurdities that many commentators have pointed out in media narratives of IM. This includes the most glaring of them — the notion that a jihadi terrorist group seeking a “universal caliphate” would define itself in nationalistic terms as ‘Indian’.

"Since childhood, I was fascinated by men in uniform. At that time, I used to think that we could sleep peacefully because of all these heroes I would read about - men like Shahwaz Ali Mirza and Vikrant Singh," says Zaidi.

Soon after 26/11, Superintendent of Police Singh was transferred to the Intelligence Bureau on deputation, something he had always wanted. He threw himself into the world of surveillance and monitoring like a man possessed, using all his source-building and investigation skills with the sole motive of preventing another 26/11.

He found a mentor in his reporting head, Inspector General of Police Mirza, who was not only an intelligence pro but also had keen insight into the way the mind of a radicalised Muslim youth worked.

 Eleventh Hour is tailor-made for Bollywood. A good option for thriller fans, Eleventh Hour starts dramatically and ends quickly.

The author drives the narrative at his own comfortable speed, giving us an insight into both the tragedies of the past and the obvious danger of  the present. He  uses of his knowledge of the locales he has selected  for the novel, ensures authenticity s, whether it’s the streets and slums of Bombay or the luxurious confines of a hijacked cruise ship. The reader is impressed to learn  the internal workings of various bureaucratic, anti-terrorism agencies to the vibes of the underbelly of Bombay. The panic and paranoia of a post 26/11 city still reeling from the feelings of being held hostage by the unknown forces of terrorism are depicted in their emphatic depth and makes the novel both gripping and rewarding.

P.P.Ramachandran.

30/12/2018.

EDUCATION

Education and Development by Jandhyala B G Tilak ; Published by Academic Foundation ; Pages  360 ; Price Rs 1495/-

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Jandhyala B.G. Tilak is an eminent  educationist, Professor and former Vice Chancellor, National University of Educational Planning of Administration. He is currently Distinguished Professor, Council for Social Development, New Delhi. He is a recipient of Swami Pranavananda Saraswati National Award of the UGC for his outstanding scholarly research in education He bagged the  Dr. Malcolm Adiseshiah Award for distinguished research contributions to development studies, Inspirational Teacher of the Year Global Education Award, and Devang Mehta national education award for outstanding contribution to education. Prof Tilak has also served as the President of the Comparative Education Society of India, and Editor of the Journal of Educational Planning and Administration. He was on research staff of the World Bank.

Jandhyala B.G. Tilak was educated in the Andhra University, Waltair, Delhi School of Economics and Institute of Economic Growth, Delhi. He has established himself as a scholar of the first order in the economics of education. That he chose to direct his prodigious energies to a relatively neglected sphere of inquiry affirms his intellectual belief that investment in education can make a significant contribution to improvement in social welfare. Commencing with his doctoral work and continuing up to the present, we find in him a scholar constantly engaging with inequality with the avowed objective of mitigating its deleterious effects. 

The book under review  appears at  a time when concerns about the state of education in India are finding an important place in discussion.Issues discussed run the gamut from content,pedagogy, architecture of institutions and purposes and goals of education. The core concepts the book expounds are of holding the individuals responsible and accountable for their actions and well-being.

 All of us know that the nexus between Education and Development is strong and has firm roots. Education helps in tackling problems related to economic growth, poverty, inequality and social development. The education edifice has to be strong, well spread, equitable, efficient, built on strong resource base and talented human resources. The book  aims at stimulating thought on these critical issues. The book has appeared originally in academic journals and it includes a special memorial lecture. Education is affected by structural adjustment and globalisation policies and the accompanying policies on financing, and private education. With respect to all these, many countries have valuable experiences and hence they can learn from each other. The book  includes one dozen articles prepared by the author over the last 2-3 decades and provides a critical discussion on these and other related themes.

 The articles present an analytical and critical review of the relationship between education and development and critically examines some of the recent trends and approaches adopted for development of education.

Ever since 1985 when the World Bank set Poverty Reduction as an important agenda and highlighted the role of primary education. policy makers and development thinkers have turned significantly towards primary education for poverty reduction. Likewise secondary and higher education also contributed to economic growth, poverty reduction, improved health conditions. All these are the subject matter of the first three chapters of the book.

With the adoption of structural adjustment policies need to reform aid mechanisms increased. Knowledge development and Knowledge management have acquired great significance and these have to be based on sound knowledge of the divergent dynamic socio- economic conditions and national policies. It is suggested that knowledge development should be the responsibility of governments in developing countries while knowledge management could be the task primarily of international organisations.

The third section of the book identifies major issues and arrives at lessons learnt from international experience by comparing experience of developing countries with those in advanced societies.

The 21^st Century is considered as the Asian Century. What will happen in these countries is of great significance. It offers a wide range of positive and negative lessons for policy makers and educational planners in developing countries in general and  the Asian countries themselves as well in particular.

The last chapter highlights the need for reforming education for better and more balanced development of the societies. It is necessary to see that education is thoroughly reformed to suit local, regional and country—specific development and at the same time ensure equitable, not necessarily uniform development of the entire society.

According to Tilak, the irony is that even when there is wide acceptance of the significant role of education in development, many countries, including India, have chosen to neglect education, particularly higher education and gradually public spending has dwindled.The book is an outstanding contribution to tackling the crucial link between education and human advancement. It will be of immense use to educationists. Planners, policy makers and the teaching class.

P.P.Ramachandran.

16/12/2018.

STEPHEN HAWKING

Brief Answers to the Big Questions by Stephen Hawking; Published by Hachette India; Pages: 232; Price: Rs 650/ -

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Stephen  Hawking was born in Oxford on 8 January, 1942. His father was a research biologist. He grew up in London and, after gaining a first-class degree in physics from Oxford, went on to Cambridge for postgraduate research in cosmology. Hawking, who was wheelchair bound due to motor neurone disease, dedicated his life's work to unravelling the mysteries of the universe.

 The cosmologist was propelled to stardom by his 1988 book "A Brief History of Time", a worldwide bestseller. It sold more than 10 million copies. He appeared in a number of popular TV shows and lent his synthesised voice to various recordings.

Undeterred by his condition, he continued his work as Lucasian Professor of Mathematics at Cambridge University—an earlier holder of the post  was Isaac Newton. In 2001, his second book – “Universe in a Nutshell” - was published.

 The book under review is a posthumous work  which tackles basic problems like God’s existence  and scope  time travel. Hawking started his last  work on "Brief Answers to the Big Questions" last year—but did not finish it before he died in March 2018, aged 76.

 This book are his final thoughts and is drawn  from his copious essays, keynote speeches and lectures that he wrote or delivered  and admirably summarises  his thoughts on some of the most earthshaking problems  that Hawking believed to be  crucial for our planet and humanity at large.

"He was regularly asked a set of questions; the book is an attempt to "bring together the most definitive, clearest, most authentic answers that he gave” according to his daughter Lucy Hawking .

The 10 big questions Hawking tackles are:

— Is there a God?

— How did it all begin?

— What is inside a black hole?

— Can we predict the future?

— Is time travel possible?

— Will we survive on Earth?

— Is there other intelligent life in the universe?

— Should we colonise space?

— Will artificial intelligence outsmart us?

— How do we shape the future?

According to Hawking  humans have no option but to leave Earth, risking being "annihilated" if they do not.

According to him computers will overtake humans in intelligence during the next 100 years, but "we will need to ensure that the computers have goals aligned with ours".

He says the human race had to improve its mental and physical qualities, but a genetically-modified race of superhumans, say with greater memory and disease resistance, would imperil the others.

Hawking says the simplest explanation is that God does not exist and there is no reliable evidence for an afterlife, though people could live on through their influence and genes.

He says that in the next 50 years, we will come to understand how life began and possibly discover whether life exists elsewhere in the universe. He declare,  “ I am optimistic that we will ultimately create viable habitats for the human race on other planets. We will transcend the Earth and learn to exist in Space”.

This  book is  a call to unity, to humanity, to bring ourselves back together and really face up to the challenges in front of us.

Hawking is able to address important, complicated ideas in simple language which is difficult and  he has a lucid style that is refreshingly unpretentious.

 Readers get a chance to see the real Hawking .  Hawking is asked about his dream as a child and whether it came true. His response provides a glimpse into the making of the man. "I wanted to be a great scientist. However, I wasn't a very good student at school, and was rarely more than halfway up my class. My work was untidy and my handwriting was not very good. But I had good friends at school. And we talked about everything and, specifically, the origin of the universe. This is where my dream began, and I am very fortunate that it has come true."

The book is replete with  personal notes affording us  an inkling of  how Hawking behaved or thought in his personal life and what contributed to  his extraordinary personality.

The scientist is  convinced that  population explosion and the rate at which we are exploiting the planet is making the end imminent. Referring to population, climate change, global warming, nuclear weapons and even political instability, Hawking contends that any of these, or the sum total of their results, may wipe out humanity from Earth. His scariest warning is that the Earth, if global warming persists, may become like Venus -- "boiling hot and raining sulphuric acid, but with a temperature of 250 degrees Celsius".

So the "Big Question" that arises from his conclusion is: What are humans to do to survive? The "Brief Answer" is: Venture out into space so as not to rely solely on one planet. If humanity is to survive, it must not keep all its eggs in one basket, he wrote. Hawking then hints that developments in science and technological advancements may enable the human race to survive -- but even if that were to happen, most other species on Earth will be destroyed, and "that will be on our conscience as a race". In a nutshell, he points out that humans have no other option but to colonise other planets and moons. He suggests that a long-term strategy should be devised for exploring other planets and moons in search of a new home, contending that planets in other solar systems may be a more viable option than ours.

Is God so unkind to allow the extinction of humans? The conclusion he had reached was that there is no God. "There is no God. No one directs the universe," he writes. "For centuries, it was believed that disabled people like me were living under a curse that was inflicted by God," he adds. "I prefer to think that everything can be explained another way, by the laws of nature."Discussing the beginning of the universe, Hawking says that there was no such thing as "time" before the Big Bang. "The role played by time at the beginning of the universe is, I believe, the final key to removing the need for a grand designer and revealing how the universe created itself," he says.

All in all, "Brief Answers to the Big Questions" is a delightful, yet significant read for anybody trying to understand our place in the Universe.

 Hawking was extremely grateful for the life he had been able to live, recognising that a part of his popularity may have had to do with his disability. Yet, he had one aim -- to find answers to all big questions that cropped up in his mind. And he lived his life pursuing this goal. Hawking did not believe in an after-life, but he will surely live permanently in our memory. He has a place with Isaac Newton and Albert Einstein as part of the “Three of the Greatest Scientists” of  Mother Earth.

Tit—Bits

1. In 2007, he became the first quadriplegic to experience weightlessness on board the so-called "vomit comet", a modified plane specially designed to simulate zero gravity. He said he did it to encourage interest in space travel.

2. He once wrote that he had motor neurone disease for practically all his adult life but said that it had not stopped him having an attractive family and being successful in his work.

"It shows," he said, "that one need not lose hope."

3.Hawking is interred in Westminster Abbey, between two of his scientific heroes, Isaac Newton and Charles Darwin.

                                  

P.P.Ramachandran

09/12/2018.

SUPPORTING FARMS--DR.GULATI

Supporting Indian Farms the Smart Way by Ashok Gulati, Marco Ferroni and Yuan Zhou ; Published by Academic Foundation; Pages 456 ;Price Rs 1495/-

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The book under review has three distinguished Editors. Ashok Gulati is the Infosys Chair Professor for Agriculture in ICRIER. He was the Chairman of the Commission for Agricultural Costs and Prices. He is on the Board of Directors of R B I  and Nabard. He has 14 books to his credit. Marc Ferroni was Chief Executive of the Sygenta Foundation for Sustainable Agriculture. He held high posts in the Inter American Development Bank and the World Bank. He is a Professor in McGill University. Yuan Zhou is also with the Syngenta Foundation. He was a Professor in a Swiss Federal Institute.

The Chief of ICRIER Shri Kathuria in his “Foreword” states that on the basis of the analysis and review of policies, the Editors have recommended a set of policies that can hopefully help India to achieve higher agricultural GDP growth, faster reduction of poverty while ensuring judicious use of precious resources like soil and water.

Most of the major agriculture producing countries in the world support their agriculture and farmers either to ensure food security and/or to enhance the income level of farmers. India is no exception. The overriding concern for India remains producing enough food supplies for its currently 1.35 billion people, which by 2024 is likely to surpass China’s population . The main policy instruments of supporting Indian farms remain that of subsidising key farm inputs (such as fertilisers, power for irrigation, canal waters, agri-credit and crop insurance) on one hand, and minimum support prices (MSP) for major  crops, on the other. But the way MSP regime has worked, and the way trade policy has intervened through myriad controls ranging from minimum export prices to outright bans on exports, the combined effect of input subsidies and output pricing regime, captured through PSEs (producer support estimates) has been negative, a sort of implicit tax on farmers. This book recognises this negative PSE, but focuses on rising input subsidies and also looks at the investments in agriculture, especially public investments. Another defining part of this book is to estimate the marginal rates of return of a certain amount of public expenditure (say Rupees Million) on investment in agri-R&D, roads, irrigation or even education and compare them with marginal returns from the same public expenditure on input subsidies. The book also looks at the Chinese agri-system to some extent as Chinese agri-production and productivity are much higher than that of India- and that too from a lower gross cropped area and much smaller holding size. It may hold some lessons for India. Further, with increasing innovations and research coming from global private sector companies, this book also visits that landscape with a view to ensure that Indian farmers get access to best technologies at affordable prices.

The book is about how best to use scarce resources to get the biggest bang from the buck. It is an in-depth study of all connected issues and aims at arriving at the best choices for the Indian policy makers dealing with large agriculture and its farmers which will ensure comfortable food security in an efficient, more equitable and environmentally sustainable manner.

One chapter is dedicated to the support to agriculture in OECD  countries as a group and some selected  countries. It discusses Producer Support Estimates and its components in  USA—European Union, Japan, Korea and BRIICS  nations.

A chapter is on support to Agriculture sector— outside support and input subsidy are analysed thoroughly. Public Support estimates and aggregate measure of support are discussed at length. The writers suggest a few policy measures that will hopefully promote efficiency in the production and consumption of fertilisers, ensure equity with respect to small holders and also assist in preventing soil degradation.

The next chapter discusses irrigation subsidy in major and medium irrigation or surface irrigation mainly. How the effects of power subsidy on groundwater has led to its depletion in some pockets in India—( like in Punjab and Haryana belt) are brought out effectively and measures are also recommended to improve the situation.

Agriculture credit developments are studied thoroughly during the period 1951—2016.Interest subvention and debt relief through waivers of loans and /  or interest are analysed carefully.

The  next chapter highlights some of the best institutional practices followed by China, the USA, and Kenya and based on this recommendations are made for improving the situation and thereby  of the farmers who are connected with it.

The Editors study the magnitude of Input Subsidy. They analyse the investment in the  form of gross capital formation by public and private sectors and compare the parameters over a period of time.

They have created a simultaneous equations model to  find out marginal returns to agriculture from investments and subsidies. Important directions are given for rationalising the regime of subsidies and investments to increase agri-GDP growth in a sustainable manner and reduce poverty.

One chapter is devoted to the revolutionary research of six global companies—Bayer, Monsanto, Dupont, Dow, Pioneer and Syngenta which could be put to use by India.

The specialists study the Chinese experience as China’s overall  GDP growth has captured great heights and we have a lot to learn from them.

The final chapter reviews key questions and makes important policy suggestions that can ensure efficient use of resources, more equitable and sustainable, both financially and environmentally.

The volume is replete with Tables, Figures, Boxes  full of  valuable information. Fourteen pages of Reference books will help those who wish to study more.

This book will help policy makers, government officials, academic, agri-business players and farmers to move towards better agri-policies which will make Indian agriculture more competitive and inclusive and environmentally sustainable.

P.P.Ramachandran.

2/12/2018.

ON  GST

G S T –A Transformational Tax Reform by Shri.V.S.Krishnan ;Published by Academic Foundation ; Pages 192 ; Price Rs 990/-

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The author of this book, Shri.V.S.Krishnan, was “Present at the Creation” of G S T and had participated in many of the crucial G S T deliberations .He was also member of various Sub-Committees on G S T. Krishnan is a senior civil servant belonging to the Indian Revenue Service with wide experience in handling matters relating to Indirect Tax Policy. In the early part of his career he served as the Member of the Tax Research Unit, where he was associated with the formulation of four Union Budgets. He has worked extensively on improving the Compliance Verification system through contributions to the preparation of the Audit Manual (under a Canadian Project) and a Return Scrutiny model (under the Asian Development Bank). He was conferred with the Presidential award for his Distinguished Record in 1999. He was closely associated with the evolution of the G S T and was also Director on the board of G S T N.

The G S T is an audacious attempt at integrating the State and Central VAT into a G S T  which would span the entire spectrum of the Value Chain. The Chief  Economic Adviser waxed eloquently—“To have achieved this in a large and complex federal system of multiparty democracy, with a Centre, 27 States and 2 Union Territories of widely divergent interests via a constitutional amendment requiring broad political consensus, affecting potentially 7.5 million tax entities, and marshalling the latest technology to use and improve the implementation capability, is perhaps breathtakingly unprecedented in modern global tax history.” Its impact is multi-layered, ranging from tax behaviour to strengthening the federal polity to ensuring fiscal equity. 

The book is divided into three parts. The first part explores the evolution of the G S T story including the debates that shaped the G S T.

The G S T will face transitional challenges including the technical one of managing the  G S T N network which is the backbone of G S T.

The G S T N challenges in its complexity the Aadhar Project, which provided an identity number with biometric details for 1.25 billion Indians. Besides providing a common online portal for all businesses to carry out three core business processes—Registration, Payment of Duty and Submission of Returns, the G S T N will match more than 3 billion invoices of buyers and suppliers every month,

The origin of G S T lies in “ VA T”  which was a broad-based tax levied on commodity sales up to and including at least the manufacturing stage, with systematic offsetting of tax on commodities purchases as input against that due on inputs. V A T started as MANVAT or as Vat on manufacturing, but later expanded to goods and services and covered the entire value chain. Today because V A T taxes value addition in both goods and services it is also called G S T—“Goods and Services Tax”. The revenue efficiency of VAT is what makes it so acceptable. A very interesting quote on the efficacy of VAT is attributed to Jean Baptist Colbert, the Minister of Treasury of Louis XIV—“ The art of taxation consists in plucking the goose as to obtain the largest amount of feathers with the smallest amount of hissing”.

Analysing the evolution of G S T, the author quotes the Chief Economic Adviser—“The G S T will decisively alter the Indian economy for the better because the G S T symbolises Indian politics and democracy at its co-operative, consensual best.”

The G S T with the simplification of the return filing system would be truly evident compared to the pre—G S T system. The  G S T  facilitates the ease of doing business by digitally aiding the tax payers to complete the formalities for paying the tax. The creation of an on-line portal in the G S T N will remove the physical interface between the taxpayer and the tax administrators and create a tax friendly environment thereby also promoting the ease of doing business. 

The second part of the book is a detailed analysis of the implementation of G S T which proves that G S T is an opportunity and can translate into favourable business customs only when businesses can successfully marry business evaluation with business restructuring.

The final and third part is concerned with policy prescriptions for going forward. The G S T impact will be strongly felt by the economy. It will spur growth by lowering the cost of investment and by expanding the market.

Krishnan concludes that G S T is  a reform which will not only reorient indirect taxes in India but also strengthen the federal polity and nurture the idea of cooperative federalism

The book carries a Foreword by India's Finance Minister Arun Jaitley who declares“...Mr Krishnan had a ringside view of the evolution of the GST. The book is written in a very lucid and readable style...... a number of interesting  suggestions have been made from the policy perspective. I am sure that this book will be useful for both, the lay reader and the tax professional”.

There is a rich section of Annexures and Appendices that throw a flood of light on this complicated subject.

Anyone interested in understanding of G S T will have to read this invaluable document.

P.P.Ramachandran.

25/11/2018.

PROF--C T KURIEN

Economics of Real-Life: A New Exposition by C.T. Kurien; Published by Academic Foundation; Pages 249 ; Price Rs.995/-.

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“Age does not wither nor custom stale her infinite variety" sang the Bard of Avon about Cleopatra. The same can be said of Prof.C.T.Kurien who at the ripe old age of 90 has produced this delightful book. He is an eminent Professor of Economics. His students are legion and are found in every region, a number of them in exalted positions. He was Professor in Madras Christian College ;Director Madras Institute of Development Studies. He was one of the six economists invited by the Secretary General of United Nations to make an independent evaluation of the Global Food Situation.

The framework of the volume is one that permits  multidisciplinary analysis and throws the searchlight on the drawbacks  mainstream economics perspective. To name these, they  are emphasis on equilibrium, reliance on the  concept of a utopian economy, the artificial distinction between a market economy and the political system and public sector. He deviates from the mainstream division of the economy into households and firms, identifying instead  different units and the links between them.

To begin at the beginning, Kurien began with a study of Economics  fondly believing  that “through a study of Economics, (he) would be able to understand the causes of poverty and contribute towards its eradication.”

He  became a teacher and was blessed with brilliant students. He expended considerable time on  issues connected with poverty. He discovered his enemies were his own brethren in his profession—the neo-classical economists . He was distressed with role of government in alleviating poverty. He declared that  a ‘high growth’ rate means little unless it leads to reduction in poverty.

Kurien’s next stop was the Temple of neo-classicism --Stanford  ruled by  the Arch-priest  Kenneth Arrow who wore a crown in the guise of the  Nobel Prize. Kurien failed to be enchanted with the new-fangled  mathematical models and accompanying . He was convinced  that these exotica  distanced itself from  reality. He believed that for countries like India with “surplus labour” and prevalence of dual economies the models could hardly explain the factual position. His long discussions with  Arrow  did not take him anywhere near solution.  Kurien wrote bluntly  “The problem with neo-classical economic theory is that through its abstractions it has set up an economic universe almost completely removed from the real world and then claims it to be the ‘ideal world’ to be established on earth!”

Kurien ploughed a lone furrow and resorted to  an independent course of research based on economic issues rooted in real life. Wrote Kurien,” I have used ‘Production’ and ‘Transaction’, the two basic activities, to probe into the working of the most rudimentary economy to the most complicated economy of our times”. Kurien strongly backed eminent  development economists  like Rosenstein-Rodan, Ragnar Nurkse and Arthur Lewis. He assigned  a value to labour, not merely  as a factor of growth but also as a necessity to lift people from poverty. While many economists embraced Marxism  Kurien kept a distance . He opted for  the empirical method and published several books including Theoretical Approach to the Indian Economy , Rethinking Economics: Reflections Based on a Study of the Indian Economy and Wealth and Illfare . The present book is another step in Kurien’s journey.

According to him “the real challenge in economics is to identify the field of enquiry for which it is necessary to have a satisfactory notion of what the ‘economy’ is and to view it as an “Evolving Complex System.” It is necessary to have both conceptual and empirical approaches. This book is a successful attempt to delineate his ideas in a simple and straight-forward manner.

Kurien has no faith in Adam Smith’s theory that the market is led by an ‘Invisible’ hand’. “The capitalist market is, thus, not the mysterious ‘invisible hand’ that steers the economy; nor is it a smooth flowing stream. It is a choppy river expanding through the visible inter-mediation of the producer-trader combine in pursuit of profits.” The book traces the emergence of the complex market of today from the beginning with to today’s sophisticated instruments of  money and banking.

Kurien highlights the invaluable  role of intermediaries, traders or agents who intervene between the producer and consumer.They lead to  “commoditisation” of markets where the producer (farmer) is far removed from the process. With trading and finance having a dominant role, trading and/or arbitraging in “transactions” become an end in themselves. Financialisation, again, is seen as “the pattern of accumulation achieved through transactions in the financial sphere rather than through production of commodities or through trade.” Kurien offers brief  accounts of the rationale of economic policies .  He proves how  economic policies are part and parcel of  society and politics. The  intervention by the State ,in fact, saved the markets on a number of occasions.

Kurien  analyses  the Indian economy and the policies of the government over the years . He believes only in growth resulting in abatement of poverty. According to him, “for the vast majority of people, livelihood remains a precarious issue after approximately five decades of ‘planned development’ and two-and-a-half decades of high growth.” He pooh-poohs  talk of  “high growth” in India since  it serves only the interests of the state, capital and a the richer segments of the economy.

Study of institutions forms an important part of economics. A nuanced view of society and its economic dimension can be developed through a focus on ownership, authority, inter-mediation and asymmetry of information. As intermediaries and knowledge asymmetries are important, social structures evolve, resulting from and enhancing differences.

 Kurien  presents a clear description of his analytical structure of the economy . It can be seen as a network of participants and activities, units and links. These result in nine different types . There are not only various types of households and economic units such as firms and banks, but also traders are separately identified. “If multilateral exchange is one of the main links in a modern economy drawing in practically all its different units into interaction, the role of the trader cannot be minimised” . In addition, he expressly states that the economy is “always in a state of flux”, challenging the perspectives that focus on equilibrium.

As a further step away from economics based on perfect competition and closer to reality, “most markets are controlled by a few producer-trader combines that can easily fix prices” .

One chapter is dedicated to  the emergence of MNCs and provides  a broad sweep of global world economic events since 1945.

 Central to the book is the view that economies are always changing, and so economics must adapt also to be relevant to the country and time under consideration. Consequently there is a need for ‘substantive logic’ based on the nature of the problem under consideration, rather than internally logically consistent axiomatic approaches.

Kurien’s book contributes in a big way to solving the problems faced by a Society with burgeoning needs and demands.His book is compulsory reading  for all students of economics and those who evolve policies.

P.P.Ramachandran.

18/11/2018.