Reverse socialism – a concept I discussed sometime in 2009 or 10 with a former International VP of HSBC
L.K. ADVANI and BABA RAMDEV along with DR. Subramanya swamy have been demanding obtaining the Swiss bank accounts and nationalizing the funds.
For reasons better known to them the media has never shown enthusiasm at all on this issue.
In the meantime Mr. P. Chidambaram sensing a remote possibility of this happening, i.e. Indian Government obtaining the list of black money hoarders in Swiss accounts, in the event of sudden collapse of the Government ,decided to quickly help the black money holders with his dubious Participatory Notes, a concept never likely to be allowed by any sane economy in the world because it is nothing but plain legalizing of Hawala and that too sabotaging the share markets by masked manipulations and funding international terrorists [ to know more about Participatory Notes refer to
1] http://www.youtube.com/watch?v=cYDREaLOqyM] and thereby speedily converting black money into white money. This is one side of the story.
Now the fact is that this Government with the Nehru family holding the actual power will not demand Swiss authorities to disclose names of account holders.
However, we have other options, one of which is a policy decision which can be termed as “Reverse Socialism”.
Let me explain this. A handful wise business people out of sheer business sense and concern for long term savings plan cum financial assurance in the event of unexpected eventualities thought of concepts which till then never existed in India and started the insurance companies and were running them profitably, generating employment etc .
The so called leaders of the nations, especially the chief ruler, namely, the first Prime Minister Jawarlal Nehru had no idea whatsoever.
Nehru cannot be blamed because he studied only British Law, colonial versions of the British History and supposed to have read some Buddist and Hindu scriptures and therefore cannot be expected to have any knowledge about economic development but unfortunately he decided on economic policies to suit his fancy political ideologies which was a unholy mixture of hidden agenda of political appeasement of certain sections of the society, coupled with British hypocritical style of adopting the middle path and wrong political choice of allying with USSR.
Somebody coined the term mixed economy instead of mixture economy because most of the components of that so called economic policy were disproportionately decided as per the whims and fancies of political compulsions faced by Nehru.
Unfortunately there was neither any strong political opposition as Mahatma Gandhi wanted it, nor any debate by any learned group of economists on the actual long term benefits or defects of this mixture economic package.
In this process of thinking he usurped the genuine businessmen of their pet projects and nationalized the Insurance industry.
His daughter who followed him with similar ideological indoctrination and entrenched in political compulsions of left ideology nationalized the banks.
Now we need not undo the nationalization of Insurance Companies and Banks because they are functioning well and fulfilling many obligations which the government failed to do with a highly dedicated work force but we can do something else.
Nationalize the property of Nehru family. After all most of the land marks, projects, awards etc are named after members of the Nehru family and it would only be befitting if we start a campaign to nationalize all their wealth too including what is there in Swiss banks which now could be multiples of entire national budgetary allocations.
As suggested by my friend a former very high ranking bank official, we can invest 25% of this money in Gold Bullion, Govt securities and Bonds etc in the traditional international money market avenues as The Bank of England, U.S. Federal reserve etc.
All this investment will have to be in the name of Government of India. We can use 50% in providing funds for national welfare schemes like health, education, infrastructure etc.
The remaining 5% can be deposited with the Reserve Bank of India and the interest accruing on them can be legally paid to their family members after TDS. The rest of the 20% funds should be for contingency purpose and should be kept in a Special purpose escrow fund with RBI, which can be used after parliament approval.