A thread on the claims made by GoI in its press conference yesterday (see pib.gov.in/PressReleasePa… and for the recording). Let me take, one by one, their so-called repudiation of "reports in a section of the media followed by some uninformed tweets"! 1/n
Their first graph was accompanied by a claim that of all vaccines given in the world, 13% are in India. First, this graph with absolute data shows that India's is NOT the world's "largest" vaccination programme, as claimed. China and US are ahead of us even in absolute terms. 2/n
Secondly, India's share in world population is 18%. But we have given only 13% of all vaccines. Details like this will never be admitted, as it will diminish the spirit of "positivity"! Also, the kind of graph as attached below will never be shown, as it spreads "negativity"! 3/n
Then comes this graph. What is not understood is that nations like USA, once they cross 50% coverage, naturally find it difficult to keep up pace. That India at 10% coverage is moving only as fast as USA at 50% coverage is actually a bad thing. But no, hey, don't be negative! 4/n
This slide. The claim: 35.6 crore doses received till now or in pipeline for GoI. States/private hospitals have ordered 16 crore doses b/w May-July. The problem with this was detailed by me in Scroll: bit.ly/3tMRMx0. See Table 1 in this article. What does Table1 say? 5/n
Table 1 says for May-July, GoI has ordered/grabbed 2.1 million doses/day. Our capacity is only 2.3 million/day (GoI's estimate). What is left for States? 16 crore doses/3 months is 1.7 million doses/day! For that, we should produce 3.8 million/day. But we don't produce that! 6/n
Then comes the king of all slides. This shows India will be flooded with vaccines BETWEEN August & December. We will have 216 crore doses over 5 months, or 1.4 crore doses/day! We now produce only 2.3 million/day. That is, there will be a 6-fold rise of availability. Wow! 7/n
GoI claims SII will make 95 crore doses in 5 months. That is, 6.4 million doses/day! This is a ~3-fold rise from ~2.2 million doses/day now. SII is already struggling to meet the promise of 3.3 million/day by July. They will make 6.4 million/day by December? Give us a break! 8/n
Take Covaxin. Capacity will be 3.7 million doses/day? Capacity of BB now is not >0.5 million doses/day. BB says it will be 1.9 million doses/day by Jan 2022. Haffkine won't start production before 8-12 months. So won't the other two PSUs. Where will the rest come from? 9/n
The affidavit of GoI to SCI says Covaxin capacity will rise from 0.3 million doses/day to 3.3 million "in the next 8-10 months". So, if at all possible, we may achieve the target of 3.3 million doses/day (3.7 million doses/day in GoI's slide) IN Dec21-Jan22, NOT BEFORE THAT! 10/n
Note also that GoI has set aside Rs 200 crore as grant-in-aid to the three PSUs to produce Covaxin. However, the GoI's affidavit noted that "grant-in-aid has been recommended; however, disbursements have yet to be made"! So no payments, yet. Is this spending on war-footing? 11/n
The same holds for the other vaccines too. Yes, some doses may trickle in by December, but the cited numbers here are absolutely unrealistic & wrong. To spread positivity doesn't mean to spread lies. Speak truth. People will be happy and positive if you just state the truth. 12/n
In sum, what's the vaccine story now? Doses administered/day in May is as poor as in April. Why don't we have one good explanation on why doses/day fell from 4.8 million doses/day to 2.3 million doses/day? Bombastic claims can give way to that one good and truthful reason. n/n
1/ <Thread on KLEMS and jobs> Lately, India has heard much on how the "RBI data on employment" show a rise in job creation after Covid-19. Many economists had tried to say why it is wrong to argue so. We now have a clearer explanation on the problems with the KLEMS data on jobs.
2/ In an article in the Indian Express, dt 14/08/24, Amitabh Kundu and P. C. Mohanan explain this neatly. Let me try to summarise their view.
The RBI DOES NOT collect data on employment. They, like others, use employment data from the NSSO's Periodic Labour Force Surveys (PLFS).
3/ From PLFS, you get neither the population nor the number of workers. You only get the share of the workforce in the population - the Worker Population Ratio (WPR). To get the number of workers, we multiply the WPR with the population. But, alas, India had no census after 2011!
Sometime in August 2014, a news item caught my attention. It said that Lakshmi Mittal, the steel tycoon, is planning to buy Blencathra, a 2850 feet-high peak, in Cumbria, UK. Curious about why the guy would buy a mountain, I dug in.
2/ Blencathra peak was owned by the 7th Earl of Lonsdale. Lord Lonsdale died in 2006. He left behind his estate for his eldest son, Hugh Lowther, but he had to pay £9 million as inheritance tax to get it in his name. UK had a 40% inheritance tax (above a threshold of £325,000).
3/ The proceeds from the sale of Blencathra -- the offer price was £1.75 million -- would contribute to a fund to pay the inheritance tax. Lowther had already sold a Turner painting to the Tate Gallery for £2 million and a farm for £1.6 million to contribute to this fund.
Let me put out a short thread on how this piece got written, and why I think it is important in the ongoing debate on Union-State economic relations. This was a topic I started looking at, first for some fun but later with some academic amusement.
2/ We knew that the Union government was trying to keep an increasing share of its gross tax revenues outside the net proceeds (or the divisible pool) in order to not share them with the States as per Finance Commission recommendations.
3/ But very few of the government numbers on cesses and surcharges were matching. I started adding up each cess and surcharge by myself from the annual receipts budgets. But there was no information anywhere on which item is a cess and which item is a surcharge.
The former CEA has posted some tweets responding to my tweets on investment rates in India estimated at current and constant prices. Someone might want to tell him that his tweets actually strengthen my case.
2/ He begins by repeating that Prof Basu is "incorrect" and retweets a post by SK Ghosh to bolster his case that investment rates at current prices must NOT be used. But then Ghosh, in that tweet, is actually saying that using data at current prices IS "the conventional wisdom".
3/ Ghosh's table has investment rates at current prices and NOT constant prices! I don't understand why the former CEA retweets a post that he claims "clarifies", but actually rejects his position. I am lost!
Both Ghosh and the former CEA are together in one point, though.
1/ The former CEA is acting smart by pointing to India's investment rate under constant prices rather than investment rate under current prices, which Prof Basu (@kaushikcbasu) is referring to. And he then calls it "clearly incorrect" and all. Is he right? No.
2/ Prof Basu is correct in saying that the gross fixed capital formation (GFCF) as a share of the GDP fell from 34.3% in 2011-12 to 29.2% in 2022-23 (SAE). These rates are at current prices. But I wish Prof Basu had used numbers for gross capital formation (GCF) instead of GFCF.
3/ If he had done so, he would have seen that the GCF to GDP ratio fell from 39% in 2011-12 to 30.4% in 2019-20, 27.9% in 2020-21 and 31.4% in 2021-22. This is a faster fall. It is this fall in investment rate that explains India's slower economic growth in the past decade.
1/ <Thread> A major news today was the decision of @shailajateacher, former Minister for Health in Kerala, politely declining the offer of the Ramon Magsaysay award for 2022. A newspaper, however, editorialised the news and called it a "second historic blunder".
2/ Such phrasing was not just sheer stupidity but also a grand display of the journalist's ignorance of what Left politics means. It was certainly a news worthy of reporting, but to editorialise it such smacked of intentions that could hardly be noble.
Who was Ramon Magsaysay?
3/ We must start with Edward Lansdale. Lansdale was the CIA point-man in-charge of Philippines in the 1950s, when a communist tide was rising across the East. A high point in his career was Ramon Magsaysay's ascent to power as Defense Secretary in 1950 and President in 1954.