Wednesday, March 18, 2009

NREGS and the World Bank and how NREGS has helped my company and its suppliers

Trust the phony capitalists at the World Bank to come up with ever more rubbish. The latest is how the NREG payment is keeping people on the land and therefore delaying the formation of more cities with their higher pay, better standard of living etc.

First, I would like the concerned economist to come and work at my factory where I will pay him minimum wage and find him a suitable hovel in which to live. I will also arrange for him to go live on NREG dough in a suitable village close by. He can then decide which is better.

Second, many have decided that the latter is better, so much so that the year NREG began payouts, it caused a great labour shortage in the area of our factory. Minimum wages, fixed by the government at low rates to satisfy the whiners at our chambers of commerce, were breached and this side effect of NREGS has lifted the income of many a labourer.

Third, because these fellows (and because of our sexist labour laws most are fellows) are utterly unskilled and unreliable, the boost in their pay gave us an incentive to replace them with fabulously skilled Indo-Austrian and Indo-Japanese workers.

We commissioned a local machine manufacturer to make us automatic machines where the duty cycle components are imported from the best European and Japanese makers. These have turned out really well - for the first time making high tech stuff in India has really worked for us - and we have been trying for 5 years.

Fourth, the machines are such path breakers in price and performance that our supplier has found takers for the same machine as an OEM from all four of the European machine makers they visited last week, and all at prices that make all parties only modestly unhappy.

Fifth, today there was more rubbish from the IMF on how we must spend buckets more on infrastructure - more roads they say. Gents, there are two things:

a) The machine referred to above will travel six to a container and each container will have the value added of 36 containers of clothes and shoes, the manufacturing the buggers at the WB would like us to do. This may well also have probably the value added of 36 containers of Chinese flat screen TV's.
b) That kind of reduces the roads needed.
c) How come the IMF does not point out that removing the zillion checkpoints on Indian roads will approximately double road capacity without doing anything but cutting corruption?

Could it be that the IMF likes big spending projects because they and their consultants are part of the gravy train?

I wonder what poppycock these institutions can come up with to explain all of the above?

1 comment:

Bombay magic said...

you don't change, :-) but exactly what is NREGS ?
Helene