Friday, June 8, 2012

On a grain mountain, India goes hungry; German pain begins as exports slump; French economic decline predicted; Getting worked up about working out; Today's India and the Victorian era


1 On a grain mountain, India goes hungry (The New York Times) In the north Indian village, Ranwan, workers recently dismantled stacks of burned and mildewed rice while flies swarmed nearby over spoiled wheat. Local residents said the rice crop had been sitting along the side of a highway for several years and was now being sent to a distillery to be turned into liquor. Just 180 miles to the south, in a slum on the outskirts of New Delhi, Leela Devi struggled to feed her family of four on meager portions of flatbread and potatoes, which she said were all she could afford on her disability pension and the irregular wages of her day-laborer husband. Her family is among the estimated 250 million Indians who do not get enough to eat.

Such is the paradox of plenty in India’s food system. Spurred by agricultural innovation and generous farm subsidies, India now grows so much food that it has a bigger grain stockpile than any country except China, and it exports some of it to countries like Saudi Arabia and Australia. Yet one-fifth of its people are malnourished because of pervasive corruption, mismanagement and waste in the programs that are supposed to distribute food to the poor.

After years of neglect, the nation’s failed food policies have now become a subject of intense debate in New Delhi, with lawmakers, advocates for the poor, economists and the news media increasingly calling for an overhaul. The populist national government is considering legislation that would pour billions of additional dollars into the system and double the number of people served to two-thirds of the population. The proposed law would also allow the poor to buy more rice and wheat at lower prices. But critics say that without fundamental system reforms, the extra money will only deepen the nation’s budget deficit and further enrich the officials who routinely steal food from various levels of the distribution chain.

2 German pain begins as exports slump (The Guardian) Pressure is building on Angela Merkel to act with signs this morning that the eurozone crisis is beginning to impact her electorate. German imports and exports fell sharply in April, according to data published this morning. Europe's largest economy is beginning to feel the pinch, with seasonally adjusted imports dropping 4.8%, their worst decline in two years. The numbers will have surprised German economists, who mostly expected the number to remain flat, having falled 0.9% in March. The news will add fuel to the lively debate on the current edition of the Economist, whose front cover calls on Merkel to restart the engines of a u-boat named the World Economy.

3 French economic decline predicted (BBC) The Bank of France has cut its forecast for the French economy. It now expects the economy to contract by 0.1% between April and June this year, having predicted that there would be zero growth less than a month ago. There was zero growth in the French economy in the first three months of the year, following growth of just 0.1% in the previous quarter. The cut is the latest sign of the lack of growth in the eurozone, which is struggling with the debt crisis. Earlier this week, the latest set of official figures confirmed the eurozone economy achieved zero growth in the first three months of 2012.

4 Getting worked up about working out (Khaleej Times) Constantly thinking about the next workout? Upset about missing an exercise class? Fitness experts say more is not always better and overworking a workout can sap strength and invite injury. “We have fit people and deconditioned people who overdo it,” said Geralyn Coopersmith, national director of the US-based Equinox Fitness Training Institute. Exercise is like a medicine. If you don’t have enough, you get no benefits; if you have too much, you have problems.

Shin splints, heel spurs and tendonitis are among the common overuse injuries that Coopersmith, who oversees the training of personal trainers for Equinox fitness centers, sees. “Some days should be intense, some days not so intense,” she said. “Exercise is a stressor. If it’s too much, the body can break down.” Extreme fatigue, irritability, moodiness, an elevated resting heart rate, fever, and an inability to work at your earlier levels are among the signs that you’ve overdone it, she said.

5 Today’s India recalls Queen Victoria’s reign (Manu Joseph in Khaleej Times) As Britain celebrates six decades of Elizabeth II as monarch, it is the reign of another queen that contemporary India resembles. It may be nearly impossible to accept that Victorian Britain, with its frock coats and parasols, had anything in common with present-day India, where “ladies” and “gentlemen” are primarily toilet signs. But, if the charades of appearances and manners are stripped away, and if only economic tumult and questions of conscience are considered, then mid-19th-century Britain had much in common with India today.

In the England of that time, there were sharp increases in wealth, but the Industrial Revolution had also heaped a vast number of urban poor in plain sight. The accepted wisdom then was that poverty was the unavoidable curse of an unlucky majority. But that notion was slowly demolished by some brilliant men and women who, in their efforts to devise a cure, were building the rudiments of modern economics. A newly enriched society was beginning to accept that abject poverty in its midst was a morally indefensible paradox.

Sylvia Nasar, in her recent book “Grand Pursuit: The Story of Economic Genius,” describes the observations of the 24-year-old mathematician Alfred Marshall on an unremarkable day in 1867, many years before he became one of the most influential economists of his time. In Manchester, she writes, Marshall found “the smoky brown sky, muddy brown streets, and long piles of warehouses, cavernous mills and insalubrious tenements – all within a few hundred yards of glittering shops, gracious parks and grand hotels. ... In the narrow back streets he encountered sallow undersized men and stunted, pale factory girls. ...” This could be, without any changes, a scene in any major Indian city today.

There is, of course, a crucial difference between modern India and Victorian Britain, even though India asks and Britain once asked the same questions. In the second half of the 19th century, Britain was a very wealthy nation. India is still poor. Britain, it would appear, has found most of the answers it sought. India is still searching. What unites them is, as Nasar writes of Alfred Marshall’s preoccupation, the quest to solve “the central paradox of modern society: poverty amid plenty.”

6 Why India PM’s infra hopes may fail (The Wall Street Journal) Indian Prime Minister Manmohan Singh’s pep talk to government departments is unlikely to get the infrastructure sector out of the rut. Mr Singsh wants the government to partner with private companies who will be bringing a lion’s share of the funds to set up new ports, airports, power plants, roads and railway lines. He hopes that, in turn, this would boost employment and spur demand, helping the economy expand faster. While the government listed several major infrastructure projects it plans to roll out in the year through March 2013, lenders seem wary of funding them.

Investors are concerned with problems ranging from difficulties in buying land and securing environmental clearances to the scant supply of energy.The government needs to encourage private investment in infrastructure because – with fiscal deficit projected to be 5.1% of gross domestic product in 2012-13 –  it does not have enough money to fund new power plants, ports, roads and airports on its own. There’s also the falling rupee, which has made oil imports a lot more expensive for all.

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