India has just concluded what is termed as epic elections by the western media though is very normal for Indians. In this blog I will first talk about some of my conclusions from the process of elections and then talk in detail about the the results, their analysis and impact.
Process
Electoral process in India has been improving by the year. These elections were held under unusual circumstances. Sri Lanka was highly unstable with Tamil violence, Pakistan was fighting its own war in the north west, Nepal government had fallen during the election and despite this instability in almost all countries it had no impact on India. This talks volumes about the strength of Indian democracy.
Election commission had full control over the process. About 400 million people casted their opinion during the elections with little problems in any part. Votes were kept locked in some parts for almost a month and with almost no insurgency or theft. All the votes were counted in one day with results on the same day. In my opinion this was one of the biggest management challenge in itself and election commission did a great job of managing it.
Evolution of Indian Democracy post 1991
In this election any party got a clear mandate almost after 15 years with a clear movement towards a two party system.
Post the death of Rajiv Gandhi Congress party did not have a leader and was breaking down. Before his death India was ironically a "democracy" but almost with a one party system. Break down in leadership of that single party created a chaos in India and a number of smaller parties emerged from the chaos and regional parties started gaining prominence. Indian democracy was in a state of flux trying to grapple with how it should shape itself. BJP gained prominence as the second party under the leadership of statesman Atal Bihari Vajpayee and provided an alternative stable government. However, state parties were still trying to figure out their role in the government. 2004 elections gave huge importance to left and while they got the seats they did not know what they had to do so we ended up having a confused government.
Analysis of result
2009 election was a almost a two party election in most of the states except UP. In almost every state Congress was fighting against another party. In the north against BJP while in the south against "Third front". Just by the virtue of having liberty of contesting in all parts on the country congress had the upper hand in the election right from the beginning. Thank fully people recognized that voting for third front will only bring instability so that got decimated. BJP had only a few strong states and it did well there but unfortunately those were too few states to make a strong impact. Clear impact of both these features was that Congress finally won decisive elections after 15 years.
2009 election also had a distinct character that it was a pro development election. States had major power and in most of the states where their was good governance people voted their parties back with thumping majority.
Weaknesses of BJP
BJP had two more problems, it lost complete control in some of the crucial northern states of Rajasthan, UP, Haryana, Punjab. to gain power it has to do much better there. And not having any presence in the south made it almost impossible for them to come to any kind of power. And rightly so, Delhi government should be run by all parts of India and not by representatives from only northern parts.
Impact
States have more power based on only and only development. It was a clear mandate chief ministers who have done well got seats and who have not done well got removed. In very large sense, with the exception of UP and Maharashtra, this was a clear signal.
Both third front (non left) and BJP will realize that they have a common opposition in the form of congress and as opposition they will need to come together to provide constructive suggestions (may be this is my wishful thinking).
Left will need to think if India still needs leftist or they should do what the world has done!
BSP, SP, RJD, only true casteist and communal parties, with no agenda, leaders who have positive developmental politics hopefully they will get decimated!
Saturday, May 16, 2009
Wednesday, April 22, 2009
Caste System and Religion
As a die hard believer of "Hindutva" (as a way of life and not religion) people continuously ask me about one major vice of our society called "caste system". How could a mature society like ours create the caste system.
My belief is that the caste system owes its roots to the destruction of education system in India and I will be grateful if informed people discuss this on this blog.
India had a great education system in the first millennium. Wikipedia chronicles 14 ancient universities in India during the period and I think there must have been many more gurukuls (equivalent of present day schools and colleges). One of the first things that Muslim invaders of India did was to destroy the education system of the country. Bakhtiyar Khalji's, who is otherwise an unknown figure, destruction of Nalanda University, other Arab raiders destruction of Valabhi in Gujarat have been documented while we don't have any trace of several others. My belief is that this systemic destruction caused more harm to the country than any other event in history.
Post the destruction of education system only way for people to learn was to learn from the parents. Only teacher for a son was his father and for a daughter was his mother. Father and mother could teach only what they knew and that means son of a sweeper could only learn sweeping and son of a trader could only learn trading. This automatically defined that one could only be as good as his/her father or mother and do what they did.
Like we say in an operations line that throughput is dependent on the bottleneck, under this setup generation of people were as good as the worst person born in the full family line. this systematically destroyed the society in India over 2nd millennium. People talk about lost decades we have had a "lost millennium".
My belief is that the caste system owes its roots to the destruction of education system in India and I will be grateful if informed people discuss this on this blog.
India had a great education system in the first millennium. Wikipedia chronicles 14 ancient universities in India during the period and I think there must have been many more gurukuls (equivalent of present day schools and colleges). One of the first things that Muslim invaders of India did was to destroy the education system of the country. Bakhtiyar Khalji's, who is otherwise an unknown figure, destruction of Nalanda University, other Arab raiders destruction of Valabhi in Gujarat have been documented while we don't have any trace of several others. My belief is that this systemic destruction caused more harm to the country than any other event in history.
Post the destruction of education system only way for people to learn was to learn from the parents. Only teacher for a son was his father and for a daughter was his mother. Father and mother could teach only what they knew and that means son of a sweeper could only learn sweeping and son of a trader could only learn trading. This automatically defined that one could only be as good as his/her father or mother and do what they did.
Like we say in an operations line that throughput is dependent on the bottleneck, under this setup generation of people were as good as the worst person born in the full family line. this systematically destroyed the society in India over 2nd millennium. People talk about lost decades we have had a "lost millennium".
Tuesday, April 8, 2008
Oil price increase
Objective
Purpose of this paper is to study the cause of increase in crude oil price. In this paper I will highlight the change in demand drivers and supply dynamics of oil since 1985. Indian and China have been the biggest demand drivers in the last 10 years hence I will also draw correlations between the GDP growth and energy consumption of these two fast growing countries to predict the future growth of oil consumption. On the supply side I will discuss why OPEC has gained power over time and why it has a higher pricing power than it had in the past.
Demand drivers of crude oil
Crude oil consumption has been consistently going up since 1985. Oil consumption has increased from 19,956 Mbbls/ year in 1985 to 27,932 Mbbls/year in 2007, an increase of 7,795 Mbbls/ year (exhibit 1). China and India together contributed 2688 Mbbls/year, 33% of the increase. In the first 12 years till 1997 they contributed only to 23% total increase in oil consumption, however, in the last 10 years two countries have contributed to 44% of overall increase.
Both the countries have a strong correlation in energy consumption with increase in GDP. For every USD 1 M increase in GDP at 2007 prices China needs 3108 barrels (exhibit 2) equivalent energy while India needs 2897 barrels (exhibit 3) equivalent energy. Not all the additional energy is comes from Oil, 30% of all energy consumed by India is in the form of oil while 20% of all the energy consumed by China is in the form of Oil. Assuming current 10% growth rate for the two countries they need 336 Mbbls of oil with a compounded growth rate of 10% to fund their growth. This is already more than double the rate of growth of their consumption in the last 22 years. OPEC countries have also increased their consumption as they are rapidly industrializing their countries.
Hence I expect oil demand to increase by 700 Mbbls per year or 2 Mbpd per year in the recent future. Although oil is now a significant expenditure for non OPEC countries, still demand continues to be inelastic.
Supply dynamics of crude oil
In 1985 OPEC countries produced 30.55% of the total crude oil in the world, this has increased to 45.3% (exhibit 4) in 2007. Known oil reserves across the world are reducing and almost all countries are beyond their peak oil production. Assuming the current reserves of oil, OPEC countries share in the production of oil will keep increasing. With the higher share, inelastic demand (probably to a limit, that they would like to test) OPEC countries will continue to have higher monopolistic pricing power.
It is in their best interest to get the maximum price of their resources today because:
• Currently there is no viable alternative to oil and alternatives will continue to be developed irrespective of the price of oil. There is a possibility of faster development of alternatives with increase in price of crude oil but environment is a bigger driver for their development and hence price of crude oil will not majorly affect the time line of development of non conventional resources.
• Even if non conventional resources get developed penny today is worth more than the penny tomorrow. Hence extracting better price of their resources today is more beneficial to them.
Conclusion
With the continuous growth in the demand of oil from the world’s two most populous nations (that does not seem to be going down in recent future) , growth in the OPEC share in oil production and OPEC having clear incentives to increase the oil price I believe that oil price will remain in the high zone and will not fall drastically.
Data sources:
Global market information database
Apeendices:
Exhibit 1 : Overall crude oil consumption of the world in Mbbls
Exhibit 2: China’s GDP in USD at 2007 prices, Mn barrels equivalent energy consumption, and their correlation
Exhibit 3: India’s GDP in USD at 2007 prices, Mn barrels equivalent energy consumption, and their correlation
Exhibit 4: Share of OPEC countries in global crude oil supply
Exhibit 1: World crude oil consumption in Mn barrels
Year World crude oil consumption in Mn barrels
1985 19956.13
1986 20598.73
1987 21013.02
1988 21654.11
1989 22023.79
1990 22405.57
1991 22488.73
1992 22741.24
1993 22532.58
1994 22913.6
1995 23238.68
1996 23818.54
1997 24415.78
1998 24504.23
1999 25003.19
2000 25263.25
2001 25347.17
2002 25533.9
2003 26034.37
2004 27033.8
2005 27349.06
2006 27511.6
2007 27931.93
Exhibit 2: China’s GDP in USD at 2007 prices, Mn barrels equivalent energy consumption, and their correlation
Year GDP in Mn USD at 2007 prices Total energy in Mn barrels
1979 250803 3341.52
1980 270616 3138.156
1981 283335 3101.868
1982 309119 3245.508
1983 342812 3414.852
1984 394920 3721.032
1985 448234 4028.724
1986 487679 4283.496
1987 544250 4563.972
1988 605750 4883.76
1989 630585 5091.66
1990 654548 5177.844
1991 714766 5439.42
1992 816263 5667.732
1993 930540 6094.116
1994 1052440 6447.924
1995 1167156 6927.984
1996 1283872 7295.4
1997 1403272 7265.16
1998 1512727 6931.764
1999 1627695 7061.796
2000 1764421 7307.496
2001 1910868 7560.756
2002 2084757 7996.968
2003 2293233 9288.972
2004 2524849 10761.66
2005 2787433 11845.01
2006 3096839 12834.61
2007 3452975 13807.58
Regression Statistics
Multiple R 0.983124228
R Square 0.966533248
Adjusted R Square 0.965293739
Standard Error 542.8151018
Observations 29
Coefficients Standard Error t Stat P-value Lower 95% Upper 95%
Intercept 2681.149161 169.9169305 15.77917605 3.75402E-15 2332.508422 3029.7899
Slope 0.003107531 0.000111284 27.92437734 1.86808E-21 0.002879196 0.003335867
Hence we clearly have statistically significant high correlation value.
Exhibit 3: India’s GDP in USD at 2007 prices, Mn barrels equivalent energy consumption, and their correlation
Year GDP in Mn USD at 2007 prices Total energy in Mn Barrels
1979 233251 750.708
1980 241648 777.924
1981 257114 850.5
1982 268170 860.328
1983 284796 909.468
1984 298466 954.072
1985 314285 1034.964
1986 329999 1109.808
1987 344519 1170.288
1988 373804 1262.52
1989 400717 1394.064
1990 423158 1461.348
1991 432044 1551.312
1992 450190 1636.74
1993 472699 1681.344
1994 504842.8 1780.38
1995 543210.9 1922.508
1996 583951.7 2052.54
1997 612565.3 2159.136
1998 648706.7 2237.76
1999 693467.4 2298.24
2000 730914.7 2422.224
2001 759420.4 2450.952
2002 793594.3 2561.328
2003 848352.3 2632.392
2004 915372.1 2874.312
2005 997755.6 3036.096
2006 1094538 3199.392
2007 1191952 3410.316
Regression Statistics
Multiple R 0.98944761
R Square 0.979006573
Adjusted R Square 0.978229039
Standard Error 116.7510991
Observations 29
Coefficients Standard Error t Stat P-value Lower 95% Upper 95%
Intercept 205.4566736 50.10619496 4.100425 0.000339145 102.6472549 308.2660923
Slope 0.002897417 8.16541E-05 35.48404 3.42491E-24 0.002729877 0.003064957
Hence we clearly have statistically significant high correlation value.
Exhibit 4: Share of OPEC countries in global crude oil supply
Production in Mn Barrels
Year World production OPEC production Share of OPEC
1985 20715.912 6328 30.55%
1986 21803.04 7332 33.63%
1987 21899.052 7246 33.09%
1988 22831.956 8110 35.52%
1989 23099.58 8665 37.51%
1990 23626.512 9308 39.40%
1991 23549.4 9393 39.89%
1992 23794.344 9945 41.80%
1993 23791.32 10183 42.80%
1994 24154.956 10392 43.02%
1995 24578.316 10524 42.82%
1996 25234.524 10868 43.07%
1997 25996.572 11351 43.66%
1998 26503.092 11816 44.58%
1999 26013.96 11335 43.57%
2000 27028.512 11933 44.15%
2001 26918.892 11645 43.26%
2002 26720.064 11026 41.26%
2003 27648.432 11684 42.26%
2004 28879.956 12622 43.71%
2005 29154.384 12990 44.56%
2006 29288.196 13077 44.65%
2007 29677.536 13444 45.30%
Purpose of this paper is to study the cause of increase in crude oil price. In this paper I will highlight the change in demand drivers and supply dynamics of oil since 1985. Indian and China have been the biggest demand drivers in the last 10 years hence I will also draw correlations between the GDP growth and energy consumption of these two fast growing countries to predict the future growth of oil consumption. On the supply side I will discuss why OPEC has gained power over time and why it has a higher pricing power than it had in the past.
Demand drivers of crude oil
Crude oil consumption has been consistently going up since 1985. Oil consumption has increased from 19,956 Mbbls/ year in 1985 to 27,932 Mbbls/year in 2007, an increase of 7,795 Mbbls/ year (exhibit 1). China and India together contributed 2688 Mbbls/year, 33% of the increase. In the first 12 years till 1997 they contributed only to 23% total increase in oil consumption, however, in the last 10 years two countries have contributed to 44% of overall increase.
Both the countries have a strong correlation in energy consumption with increase in GDP. For every USD 1 M increase in GDP at 2007 prices China needs 3108 barrels (exhibit 2) equivalent energy while India needs 2897 barrels (exhibit 3) equivalent energy. Not all the additional energy is comes from Oil, 30% of all energy consumed by India is in the form of oil while 20% of all the energy consumed by China is in the form of Oil. Assuming current 10% growth rate for the two countries they need 336 Mbbls of oil with a compounded growth rate of 10% to fund their growth. This is already more than double the rate of growth of their consumption in the last 22 years. OPEC countries have also increased their consumption as they are rapidly industrializing their countries.
Hence I expect oil demand to increase by 700 Mbbls per year or 2 Mbpd per year in the recent future. Although oil is now a significant expenditure for non OPEC countries, still demand continues to be inelastic.
Supply dynamics of crude oil
In 1985 OPEC countries produced 30.55% of the total crude oil in the world, this has increased to 45.3% (exhibit 4) in 2007. Known oil reserves across the world are reducing and almost all countries are beyond their peak oil production. Assuming the current reserves of oil, OPEC countries share in the production of oil will keep increasing. With the higher share, inelastic demand (probably to a limit, that they would like to test) OPEC countries will continue to have higher monopolistic pricing power.
It is in their best interest to get the maximum price of their resources today because:
• Currently there is no viable alternative to oil and alternatives will continue to be developed irrespective of the price of oil. There is a possibility of faster development of alternatives with increase in price of crude oil but environment is a bigger driver for their development and hence price of crude oil will not majorly affect the time line of development of non conventional resources.
• Even if non conventional resources get developed penny today is worth more than the penny tomorrow. Hence extracting better price of their resources today is more beneficial to them.
Conclusion
With the continuous growth in the demand of oil from the world’s two most populous nations (that does not seem to be going down in recent future) , growth in the OPEC share in oil production and OPEC having clear incentives to increase the oil price I believe that oil price will remain in the high zone and will not fall drastically.
Data sources:
Global market information database
Apeendices:
Exhibit 1 : Overall crude oil consumption of the world in Mbbls
Exhibit 2: China’s GDP in USD at 2007 prices, Mn barrels equivalent energy consumption, and their correlation
Exhibit 3: India’s GDP in USD at 2007 prices, Mn barrels equivalent energy consumption, and their correlation
Exhibit 4: Share of OPEC countries in global crude oil supply
Exhibit 1: World crude oil consumption in Mn barrels
Year World crude oil consumption in Mn barrels
1985 19956.13
1986 20598.73
1987 21013.02
1988 21654.11
1989 22023.79
1990 22405.57
1991 22488.73
1992 22741.24
1993 22532.58
1994 22913.6
1995 23238.68
1996 23818.54
1997 24415.78
1998 24504.23
1999 25003.19
2000 25263.25
2001 25347.17
2002 25533.9
2003 26034.37
2004 27033.8
2005 27349.06
2006 27511.6
2007 27931.93
Exhibit 2: China’s GDP in USD at 2007 prices, Mn barrels equivalent energy consumption, and their correlation
Year GDP in Mn USD at 2007 prices Total energy in Mn barrels
1979 250803 3341.52
1980 270616 3138.156
1981 283335 3101.868
1982 309119 3245.508
1983 342812 3414.852
1984 394920 3721.032
1985 448234 4028.724
1986 487679 4283.496
1987 544250 4563.972
1988 605750 4883.76
1989 630585 5091.66
1990 654548 5177.844
1991 714766 5439.42
1992 816263 5667.732
1993 930540 6094.116
1994 1052440 6447.924
1995 1167156 6927.984
1996 1283872 7295.4
1997 1403272 7265.16
1998 1512727 6931.764
1999 1627695 7061.796
2000 1764421 7307.496
2001 1910868 7560.756
2002 2084757 7996.968
2003 2293233 9288.972
2004 2524849 10761.66
2005 2787433 11845.01
2006 3096839 12834.61
2007 3452975 13807.58
Regression Statistics
Multiple R 0.983124228
R Square 0.966533248
Adjusted R Square 0.965293739
Standard Error 542.8151018
Observations 29
Coefficients Standard Error t Stat P-value Lower 95% Upper 95%
Intercept 2681.149161 169.9169305 15.77917605 3.75402E-15 2332.508422 3029.7899
Slope 0.003107531 0.000111284 27.92437734 1.86808E-21 0.002879196 0.003335867
Hence we clearly have statistically significant high correlation value.
Exhibit 3: India’s GDP in USD at 2007 prices, Mn barrels equivalent energy consumption, and their correlation
Year GDP in Mn USD at 2007 prices Total energy in Mn Barrels
1979 233251 750.708
1980 241648 777.924
1981 257114 850.5
1982 268170 860.328
1983 284796 909.468
1984 298466 954.072
1985 314285 1034.964
1986 329999 1109.808
1987 344519 1170.288
1988 373804 1262.52
1989 400717 1394.064
1990 423158 1461.348
1991 432044 1551.312
1992 450190 1636.74
1993 472699 1681.344
1994 504842.8 1780.38
1995 543210.9 1922.508
1996 583951.7 2052.54
1997 612565.3 2159.136
1998 648706.7 2237.76
1999 693467.4 2298.24
2000 730914.7 2422.224
2001 759420.4 2450.952
2002 793594.3 2561.328
2003 848352.3 2632.392
2004 915372.1 2874.312
2005 997755.6 3036.096
2006 1094538 3199.392
2007 1191952 3410.316
Regression Statistics
Multiple R 0.98944761
R Square 0.979006573
Adjusted R Square 0.978229039
Standard Error 116.7510991
Observations 29
Coefficients Standard Error t Stat P-value Lower 95% Upper 95%
Intercept 205.4566736 50.10619496 4.100425 0.000339145 102.6472549 308.2660923
Slope 0.002897417 8.16541E-05 35.48404 3.42491E-24 0.002729877 0.003064957
Hence we clearly have statistically significant high correlation value.
Exhibit 4: Share of OPEC countries in global crude oil supply
Production in Mn Barrels
Year World production OPEC production Share of OPEC
1985 20715.912 6328 30.55%
1986 21803.04 7332 33.63%
1987 21899.052 7246 33.09%
1988 22831.956 8110 35.52%
1989 23099.58 8665 37.51%
1990 23626.512 9308 39.40%
1991 23549.4 9393 39.89%
1992 23794.344 9945 41.80%
1993 23791.32 10183 42.80%
1994 24154.956 10392 43.02%
1995 24578.316 10524 42.82%
1996 25234.524 10868 43.07%
1997 25996.572 11351 43.66%
1998 26503.092 11816 44.58%
1999 26013.96 11335 43.57%
2000 27028.512 11933 44.15%
2001 26918.892 11645 43.26%
2002 26720.064 11026 41.26%
2003 27648.432 11684 42.26%
2004 28879.956 12622 43.71%
2005 29154.384 12990 44.56%
2006 29288.196 13077 44.65%
2007 29677.536 13444 45.30%
Saturday, February 17, 2007
Friday, January 5, 2007
Wednesday, December 20, 2006
PGDEL course
Curriculum of Technology for education leaders
Background:
Education leaders of the technology age need to be IT savvy and should be able to consume IT resources effectively to be more productive. Current batch of PGDEL ranges in the age group of 27-40 and group has basic understanding of technology. Group appreciates that using technology will be very useful for them. Group has shown inclination to learn following topics.
Technology for enhancing course Delivery:
1. Introduction of PowerPoint needs to be given to the students. PowerPoint enhances quality of delivery in the class room. A handbook for PowerPoint can be used for the delivery of the course. There should be group project where everyone presents a topic of their choice using powerpoint. (Powerpoint has been covered very well in Shuchi Grover’s course. Students are using the tool for all their presentation. Its been quite effective)
2. Multimedia tools: Multimedia tools like audio and video are used to enhance course delivery. Short module that will help students to understand various kinds of multimedia format and how they can edit the media and embed the media as part of their presentation. A 2-3 page document needs to be prepared that will be shared with the students along with the verbal instructions being given. One project that covers making a small clipping from and already existing video. (This has not been covered and needs to be covered)
Collaboration and discussion tools
1. Publish (Blog): Design and understand advantages and limitations of using a Blog. Understand multiple features of a Blog and how they should be using those features of the Blog. We should then have a Blog for each course where we can discuss various articles of our course. (Group is not very comfortable with Blog primarily because group has not used it often)
2. Publish (Website): Different kinds of website construction technology need to be explained so that group understands the difference between ASP, .NET, JAVA to be able to make management decisions in future. Basic website designing using HTML can be taught to them to just get an understanding of how things move on to the web. (Designing of web pages was covered by Shuchi. However due to lack of use of the website and not having support to help the students post the course retention is not very good)
3. Share: Understand the functionality e-groups and compare them against Blogs. Use e-groups effectively to discuss the readings on the net before they discuss them in the class room. (Present group is very comfortable with Groups)
4. Share: Use Gtalk, SKYPE and collaboration tools
Search tools
1. Search: Understand advanced features of search. Understand the meta search engines. This should be more of self learning that they paste on a Blog. (Group has some understanding but detail understanding needs to be provided)
Technology for computation:
1. Overview of programming languages and explain how logic is used to program complex phenomena. This is only to give them a brief of what programming languages are how they can take management decisions on different kind of programming languages. Handbook will need to be prepared for this. (group has no introduction to this)
2. Excel: Group should be able to use Excel effectively to analyze data, compute basic tables and then be able to prepare and present the budget. A full day session on excel is required with a pre designed handbook on the same. (Group has no understanding of this. )
3. Overview of databases and their utilities. Only displaying examples of some databases.
Computer Hardware, Network, Maintenance:
1. Overview of evolution of different kinds of applications and how processor sppeds have preceded the requirement of applications.
2. Overview of Hardware network explaining how multiple computers interact on an internal network.
3. Overview of maintenance of a network and how one should plan the maintenance of the network.
Delivery mechanism:
Course will be delivered in the computer center. Course should be divided over time for better absorption and internal resources should be able to guide the students over an extended period of time. Technology for enhancing delivery and, collaboration and discussion tools should be used effectively during the course delivery and presentation to ensure that the learning is internalized. Details of each one of the courses with readings and evaluation process needs to be worked out in detail.
Monday, December 18, 2006
Ethics
Yesterday I had an interesting discussion with my flatmate and got one of the most clear definition of ethics. "Ethics are a set of rules followed by a society such that actions of an individual does not harm others."
Fathoming this definition, I thought then why do we harm animals or what gives us the right to kill animals and here comes the other explanation from our man. " Killing living beings who are not constructive helps the society. Most human beings are constructive or have the capability to be constructive and hence we should contribute to giving them opportunities to be constructive."
Though I respect his views I think that is one way to think about it. Animal in me believes "harming human beings can have a negative effect while animals are probably no more capable of fighting humans, hence as a society we have accepted that is is wrong to harm human beings while okay to harm animals."
Fathoming this definition, I thought then why do we harm animals or what gives us the right to kill animals and here comes the other explanation from our man. " Killing living beings who are not constructive helps the society. Most human beings are constructive or have the capability to be constructive and hence we should contribute to giving them opportunities to be constructive."
Though I respect his views I think that is one way to think about it. Animal in me believes "harming human beings can have a negative effect while animals are probably no more capable of fighting humans, hence as a society we have accepted that is is wrong to harm human beings while okay to harm animals."
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