Lessons From the East XIII: The Irreversible and Irrevocable Significance of Swatva

The West under the various gimmicks gave up its Swatva and is facing the consequences. However Bharat despite being subjugated for over 200 years by foreigners, didn’t leave its Swatva.

NewsBharati    26-Oct-2022 14:56:08 PM   
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How are alliances formed between Nations? Is it based upon common opportunity, landmass, or value systems?

Why are tools, and technology of the 21st century that was supposed to bring stability creating an, even more, Unstable World?

What’s the solution to World’s Woes? Oh! Apologies only to the Woes of Lesser halves comprising ~ 3.4 billion people out of 7.9 billion.


The Headline

Desperate for water: European drought crisis in pictures – Euronews.com, August 2022

The Great European Energy Crisis Is Now Coming for Your Food – Bloomberg.com, August 2022

Europeans won’t escape their energy crisis as long as ideology trumps basic math. - foreignpolicy.com, September 2022

Water scarcity: EU countries forced to restrict drinking water access – dw.com, July 2022

More than 2m adults in UK cannot afford to eat every day, survey finds - theguardian.com, May 2022

These are some of the titles published in various journals, online news platforms, or media reporting that reflect the reality of the day.
 
Lessons From the East XIII: The Irreversible and Irrevocable Significance of Swatva 

What’s been witnessed by the west is a phenomenon that is not only specific to a region or a section or a sect of society but is prevalent and impacting large swathes of the population across the planet.

The Conundrum

Millions sleep without food every day, and Scarcity, shortage of drinking water, and a forthcoming extreme winter with no warmth and no power.

Is this what the world staring at?

For few who may be thinking that this is a common phenomenon in the so-called developing world, impoverished world, or third world, they are wrong, deadly wrong.

The challenges of being chained in one’s excesses and hypocrisy are bumping this time around to the so-called developed world, the privileged world. (What is the Developed World? The developed world, which certifies itself to be developed)

Common Confrontation for existence

Humans around the world need three essentials for subsistence: Water, Food, and energy (Energy for Wi-Fi to stay connected and heating against extreme weather).

Forget having all three, getting hold of even one or two from the three seems to be a challenge. The situation is so grave, that the Berlin Cathedral or Berliner Dom, the monument of significance, the monument of belief, the monument of historic relevance is no longer being illuminated to save energy.

Who is the Culprit here?

What went wrong with the West that was prospering till the last century or even in the last decade, at least prosperity was perceived optically.

Some believe that it has to do with an aging population, some believe it has to do with War, the Russian & the Ukrainian Conflict and some believe that it has to do with the burgeoning debt of the EU.
 
Let’s decipher this.

The Energy Crisis

The next eleven statements will bring a perspective!
  • Russian economy < Smaller than the top 3 state economies of the US in terms of size.

  • Europe Produces 3.6 million barrels of Oil daily & uses 15 million barrels of Oil daily

  • Europe produces 230 billion cubic meters of natural gas a year but uses 560 billion cubic meters.

  • Europe uses 950 million tons of coal a year but produces ~ 450 million tons of coal a year.

  • Russia produces 11 million barrels of oil per day but uses 3.4 million.

  • Russia produces ~700 + billion cubic meters of gas a year but only uses around 400 billion.

  • Russia mines 800 million tons of coal each year and uses 300 million tons.

  • Russia supplies~ 20 percent of Europe’s oil, 40 percent of its gas, and 20 percent of its coal.

  • In 2016, Russia supplied 30% of natural gas to Europe

  • In 2021, Russia supplied ~47% of natural gas to Europe

  • Germany had 30% of its energy supplies from Nuclear a few years back & at present ~ < 10%
    (Data as on 31st Dec 2021)
The above facts clearly show how under the pressure of Left Liberals, Green warriors, and activists, Europe lost its ability to control the energy resources and got dependent on Russia.

The transition started with fossil fuels. Firstly Europe shifted from fossil fuels to compressed Natural gas along with nuclear power which produces the least amount of pollutants from a climate change perspective. Both were shut down to make space for Solar and Wind. But thanks to the pressure from the activists and Green Parties, it gave away its freedom and its self-reliance, and its Swatva on energy sources.

The subtle yet significant move from natural fuels to renewables made Europe Energy deficient and thus a net importer of energy. Somebody protesting and somebody implementing the change missed out on a small detail that solar and wind power needs around 40-50 times more space than coal and 90-100 times more space than gas (Pun intended).

The Food Crisis

Ukraine has been a bread box for Europe and Africa and the war has accentuated the problems of food. The fertilizer used for agriculture production that was supplied by Russia also was paused.

A recent report published in May 2022, by the World Wide Fund (WWF) stated that despite being the world's largest exporter of agri-food products in value terms, Europe has a mammoth trade deficit when the context of measurement is in nutritional terms, such as calories and proteins. It’s interesting that the EU imports nearly twice as much seafood as it produces, to fulfill its need for protein. With inflation surging, the economy visibly slowing down, and food & fuel prices rising, Europe is hanging on a thin thread as far as food security is concerned.

The EV Protest

Another challenge that is hitting the EU is the shift toward the Electric Vehicles. At this juncture, almost all Electric Vehicles use lithium Ion batteries. Unfortunately largest quantum of lithium ~ 78% comes from Chile and residual from the United States. Chile, the largest producer of Lithium has a massive water shortage and groundwater contamination on account of Lithium Mining.

EU has one active mine of lithium and 7-8 proposed, however, there is strong opposition from the locals on account of fear of water contamination and pollution. Rightfully so, the minerals used for manufacturing Lithium Ion batteries beyond lithium are Cobalt and nickel and both are carcinogenic.

Even if lithium gets indigenously produced, it will be a big pollutant and it will even impact the much precious and even scarce underground water.

Thus the movement of Europe to shift from gas-fueled vehicles to EVs doesn’t make economic or social sense, as one is replacing one import with another and the one that is being chosen now is more harmful to Mother Earth as well as to people.

Problems don’t lead to solutions. Asking the right questions do!

The Solve & the Resolve

Why once a strong Europe, controlling nearly two third of the world is going under?

The answer lies in Selling its own Swatva.

What is meant by Swatva?

Swatva means innateness of self. Swatva is made from two words – Swa and Tva .

Swa means self. Tva means one’s elements.

Unfortunately, there is no equivalent word in English that describes Swatva.

In a simplistic explanation, Swatva means being in a condition of self-existence and, self-determination. It’s very close to being Swatantra (freedom) not only physically but emotionally as well. One having a sense of Self-determination.

The West under the various gimmicks gave up its Swatva and is facing the consequences.

However Bharat despite being subjugated for over 200 years by foreigners, didn’t leave its Swatva.

Hence Bharat slowly yet steadily over three fourth of the century came back to lead the world and show the path of Collective Well-being.

Bharat faced multiple catastrophes yet converted most into an opportunity with the sole aim to protect its soul, protect its Swatva.

What enabled Bharat and what World and the West can learn from Bharat?

1. Systems & Culture of Bharat —
 
The ancient Hindu system that was created over 5000 years ago remains strong and resilient. The same gave strength then and continues to give strength today. The list of systems is long and thus will quote only two of them.

a. Travel — Globally leisure travel constitutes nearly 80% whilst in India, 70% of tourism is spiritual and Dharmic tourism and is pursued by all sects, segments, classes, and socio-economic strata throughout the year. The important places from Dharma’s standpoint exist across the country, from North to South, East to West everywhere. Spiritual travelers travel to these places and monuments irrespective of caste, creed, color, or socio-economic background, thus keeping the money flow and income flow through the year irrespective of recession or boom.

Leisure travel is dependent on external factors like income, markets, geo-political situation, and climate however spiritual travel as stated above cares for none and is pursued every year irrespective of any external conditions. This creates economic resilience for the country.

b. Festivals and Fairs — Around the year festivals and fairs are celebrated so that people meet and be together as well as increase the economic activity after a lull season. Hindu Dharam has not one, not two but 12 -15 essential festivals and a few moaning seasons during which economic activity takes place.

During the festive season, one makes purchases for friends and family whilst moaning season, one gives back to society. This format of festivals and moaning period enables the economic activity to keep progressing forward.

2. Out-of-box Thinking: Make in India, Make for India and Make for World.
 
When covid struck, the west including Western Europe, the US, and the UK governments was engaged in taking further debt on their balance sheet and disbursing free money and monetary incentives to induce demand.
The logic was to bring the interest costs to Zero, and let governments borrow more money at Zero or negative or near zero rates. Flush this money to drive demand and keep businesses going, keeping employment, earnings, and income levels high. As earnings of both households and the private sector will first sustain and then grow, the tax revenues will significantly jump after seeing a slight dip.

Since there is practically no cost of borrowing, thus there is no downside in having incremental borrowing and as the economy picks up, tax collections get buoyant, and the excess taxes collected will be utilized to pay off the debt. But events folded in an unplanned manner. The inflation surged on account of increased liquidity and more expensive imports (due to disrupted supply chains). Hence to cut the inflation to size, interest rates have started to rise, leaving the western governments and householders both worse off with excessive debt.

Bharat took a different path. Bharat also increased its fiscal deficit, which means borrowing incremental money but instead of dolling cash handouts, money was spent on Building Atma Nirbhar Bharat — Made in India. Building things and goods for India in India and for the world.

The first step was to replace imports with things and goods assembled in India and then manufacture in India.
 
But the challenge was that the government can’t manufacture using public funds as running businesses is not the core activity of the government. Also when there is uncertainty, unpredictability, and ambiguity which was the case during covid, private capital goes back home and stays safe.

To increase private participation, the Government of India (GOI) came a series of incentives for the private sector to open purses, remove fear and make for the World. GOI realized that a small nudge at the right time can propel people to act. Performance-linked incentive Schemes (PLI) were introduced across 10 core sectors which were then increased to 14 sectors providing the right set of motivation for private capital to proceed with Make in India and putting India on the manufacturing map of the World.

Further initiatives like National Master Plan for Multi-modal Connectivity, and National Single Window System providing end-to-end facilitation, and support have fixed the challenges on the manufacturing side, nudging India to get on the fast track of Make in India, Make for India and Make for World. One has already seen that some of these initiatives have fructified into unrivaled success. For example, India has moved up the ladder to emerge as the second largest mobile phone manufacturer, as well as the largest two-wheeler manufacturer in the world.

3. The vision of benefiting the last man standing via the multiplier effect

During Covid when demand was suppressed, Bharat chose to build and expand its infrastructure boosting its spending on infra. Roads, Bridges, and Highways were built in record time at record speed and they continue to be built even after the Pandemic is over. Infra spend benefits all sectors and the monies spent by the government reach the last man standing creating a multiplier effect.

One quote from Manusmriti sums up the entire thinking and thought process with which Bharat is progressing. It’s captured in Chapter 4, Verse 160. And it states. (Words in Sanskrit)

सर्वं परवशं दुःखं सर्वमात्मवशं सुखम् । एतद् विद्यात् समासेन लक्षणं सुखदुःखयोः I

Sarvaṃ paravaśaṃ duḥkhaṃ sarvamātmavaśaṃ sukham,
Etad vidyāt samāsena lakṣaṇaṃ sukhaduḥkhayoḥ I

Meaning: All that is dependent on others is painful; all that is dependent on oneself is pleasing; he shall know this to be, in short, the definition of pleasure and pain.

Sanatan Dharam always believes what holds good for inner happiness, holds good for life, what holds good for life, holds good for the economy, what holds good for the economy, holds well for the nations, ultimately it’s all one.
 
 

Siddhartha Rastogi

Siddhartha Rastogi is Managing Director & Chief Operating Officer of a Leading Full Service Investment Bank. Views and opinions expressed in this article are those of the authors and do not necessarily reflect the official view or position of any company or sister concerns or group company where the author is presently employed.