Say No To Nano

Is the Tata Nano factory good for West Bengal?

That is the only question.

Well, the Birla Ambassador is being made in West Bengal for over 50 years – and I doubt whether any Bengali has gained from this.

There is no common benefit if protected industries locate themselves anywhere. If we are to pursue "common profit" then free trade is the only way – and West Bengal is located by the sea, so therefore in an eminent position to pursue such policies. With free trade, the possessions of every Bengali – his wealth – would increase. Thus, the "wealth of Bengal" would rise just as Adam Smith said it would.

Secondly, both parties gain in capitalistic exchange. When you buy a book, both you and the bookseller gain, as do the publisher and even the author.

In the case of the land taken over by Tata Motors for the Nano factory, both sides have not gained. This is therefore not a capitalistic exchange. On the contrary, it is not an exchange at all, but a handout involving the use of illegitimate force by The State. This is rank cronyism.

It is being said that other states are wooing the Tatas to locate the Nano factory in their territories, but I sincerely doubt whether any of these state governments will be able to "acquire" land for the factory. I doubt whether farmers in other states will be willing to a forcible transfer of their properties to Tata Motors. Farmers all over India now have a clear understanding of their rights to their fields. They will never sacrifice these rights towards any "common interest."

Tata Motors has made a bad "political investment" in West Bengal. They would have been far better off if they had steadfastly attempted to buy land directly for their factory. They have, instead, sullied their reputation. And bloodied their hands.

To conclude: There are similarities between Amarnath and Tata Nano. In both instances, law and order has broken down because The State has taken it upon itself to give land to those it patronizes. This is clientelism. It is not "common profit." This is happening because in socialist India both politics as well as business are not based on sound principles.

Reminds me of the Leonard Cohen song:

After bitter searching of the heart,
We finally rise to play a greater part,
Not steering by the venal chart,
That tricked the mass for private gain,
This is the faith with which we start,
That men shall know commonwealth again…