Selecting judges

Till 1993, judges were appointed by the executive in consultation with the judiciary but the judicial voice was neither dominant nor decisive.The executive's angst for a 'committed judiciary ',quickened the genesis of the Collegium,giving rise to a brotherhood ”consensus wherein middle-of-the-road appointments edged out better talent. The current judgment of the Apex court could also be seen posited with the new government's questionable choice of heads of various important institutions .The political class has much heights left to elevate itself. Hopefully the judiciary too would listen to words of its lone dissenting judge ,quoting Macaulay’s dictum, “Reform that you may preserve. " .Perhaps the time is not yet ripe for a considered finality on judicial appointments ,given the hiatus between a restive government and an apprehensive Apex court.

Born polarised

Born as this nation was in 1947 , through polarisation, it is perhaps destined to live with it. That this ethos gets accentuated during elections should rather be seen in the context of the freedom of the minority to exercise its franchise to the extent of being acknowledged as a determinant factor. .And that can not be said for many other nations around us, that attained freedom from foreign rule around the same time but are still swayed by mono - ideological themes. In vying for due political space by leveraging caste or creed , aberrations will occur under a liberal democracy as ours, That said, leaders of the day ought always to toe the spirit of our constitution that protects the right to life and liberty of every citizen . More importantly they should be seen to carry through this onus , elections or not .

Taxing governance

.The current BJP government has a worrying tendency to revising its stand be it on important policy pronouncements or even major Bills . Worse still, it can not make up its mind while addressing major corporate tax issues . The steady pile up of contentious assessment ,be it Vodafone and others and now Sanofi ,are an indication of a nebulous administration. This is the outcome of a mindset fixated on a unipolar governance ,that tends to ride rough shod over all else. Be it the farmer and his land,autonomy and key institutions ,citizen and right to free expression ,tax policies and transparency and so on,the government would like to have its way .Yet professing fair play and level playing field. Perhaps the experience of the ministers is unable to overtake their enthusiasm ,whereby differing but honest view points of the senior beauracracy are not accommodated ,resulting in faulty policy formulations . The aberration then continues by way of prolonged litigation to drag the issue till it get resolved in court or arbitration . Precious time is lost and ultimately ,there are no winners .

Savings

.Modern day economics is way too skewed than it was three decades ago . We are worried over Fed increasing rates and irritated as to why RBI is delaying reduction !.. Monetary measures, seek to increase the supply of credit and not to increase the supply of money to the economy. Central banks are not equipped to increase the level of reserves in the banking system by wishing it. They can merely create ledger money in an attempt to cajole the banking system into normalcy, For close to two years now,RBI has been unsuccessful . Social issues, such as rising income inequality and household indebtedness, are related to the rise of finance into an unprecedentedly dominant force .This is further skewed by the entire finance industry getting preferential treatment from the government -- be it the massive bailouts or the right to borrow massive amounts of relatively free money from the Central Banks, Worse, banks sit on piles of idle cash but do not loan it out into the economy because they are worried about their balance sheets .And this where household savings become vital as it instantly funds our economy that is more dependent on savings,than ever before

China and India

.The vast disparity between the two nations ,be it the GDP,scales of production,the rate of household savings that fund growth ,the rate of inflation , percentage of unemployment , percentage below poverty line and more ,are vital parameters to reckon before we even contemplate to to cash in on perceived woes of China, In each of these we stand immensely outclassed .We are seeing our stocks dive even with our $5trln economy (PPP terms) on a mere sneeze from a $14 trln one !. The one area we could conceivably usurp the hold of China In the course of their current economic / monetary upheaval,,is manufacturing big,medium and small.But look at the comparative figures ,industry contribution to GDP is 44 % to 26; industrial growth 7.5 % to 1.9 ;exports $2.5 trln ( largely electrical and other machinery and we have none ) to our 350 bln .We do not possess the vast array export items they have and the massive base of MSMEs they possess ,that can quickly adjust to fluctuations in demand unlike large entities .That said , with all the plunge in price of inputs as oil and ore ,our steel makers are unable to profit as China's capacity at 882 MTPA simply dwarfs our 86 .Even a devalued rupee is of little help against the might of China.

Deep shadows of Left

As was expected, the TMC has swept Bengal civic body elections .The CPI(M)-led West Bengal experiment in its later phase ,far from being a weapon of class struggle and its initial promise of providing the masses with urgent relief ,went overboard in resisting industrialisation in the state.It was a fatal deviation that ended its three decade rule.But in the process it created a mercenary cadre that had since switched allegiance to the TMC ,to ensure electoral annihilation of opponents .This portends yet another long era of political wilderness for Bengal ,where no space would exist for any other party.The state may have switched its master after three decades of pent up hope ,but may well be unable to alter its Fate ,for a long while yet.

Dollar rides an uncertain tide

Riding quietly on the back of dramatic reduction of key rates ,the Governor .RBI had also outlined the framework for easing limit on foreign institutional holdings of government notes now to be denominated in rupees instead of dollars and the cap will be raised in phases to 5 percent of outstanding debt by March 2018 and that the increase will help attract 1.2 trillion rupees of additional investment. That said , global economy has been unsettled by violent and unpredictable fluctuations in most major currencies. This has brought international trade and financial investment to its knees.The dollar ,that has been on the edge far too long because of the US Fed lingering,needs to find stability fast and sooner the Fed revises its rate,the earlier cross currency instability will abate and a much needed equilibrium reached. Lower domestic rates and even a liberalized the Bond market may not provide the desired upsurge to our economy ,so long as the reserve currency,the dollar rides an uncertain tide.

Aadhar,promote it

>8.We live in an age of “big data.” . Exponential advances in harvesting of large data sets and the use of intricate analytical algorithms,clearly implicate privacy concerns. The sheer spread of data creates enormous value for the global economy, driving innovation, productivity, efficiency, and growth An ideal model is where the benefits of generated data are balanced against individual privacy rights and to determine whether their processing be justified on legitimate business interest or be subject to individual consent, Aadhar clearly ,is not ubiquitous , but the danger of abuse of privacy is ever present . Firewalls are being engineered by the hour , world over , to guard data privacy and there is no reason why UID would remain vulnerable to ill considered exploitation .

Economics Nobel

In 1776 Adam Smith, postulated that the existence of economic prosperity ,more than persistence of poverty , should need attention. An eon was then spent on identifying conditions necessary for wealth-creation. That did not suffice and ,another era was spent on the burning issue of distribution of income between capital and labour .But today wealth is largely created by innovation and technology, like Whatsapp at $ 20 blln with 60 odd people in a garage .And that further skews the distribution of wealth and income,a phenomenon that will endure . This brings us to the next phase on understanding poverty with Prof Deaton whose approach to economics is primarily on data analytics .This could be daunting task for emerging analytical economists who would be beset with the ever expanding Big Data that demands extraordinary insights into interpreting them effectively and with assurance We have journeyed long , from distribution of wealth to income to poverty .It may take ages for socio -economists to even grasp the concept of distribution of happiness.

Project planning

The road infra projects are but part of the command economy syndrome of the sixties.Old drawbacks persist ; either the tendering process is incomplete, or the terms and conditions are unclear, or lengthy litigations and local political interference, or simply a lack of policy and management co-ordination, stalling projects midway and left hanging till things are sorted out. One reason why private funds have largely shied away from infrastructure projects in general. As the outlays are huge ,public money is rendered unproductive and lending banks stare at enormous NPAs.The government thus battles on many fronts : growth retarded by stalled infra,unproductive assets that give no returns ,PSU banks with poor balance sheets and worse, reduced liquidity to service the economy.By granting one time financial assistance to stalled projects ,the government is addressing only a part of the problem that of freeing idling assets .But what about a thorough overhaul of its own outdated relic of professional project management .Seminars will not do. llll. R.Narayanan ,Ghaziabad . lllllll

.Till 1993, judges were appointed by the executive in consultation with the judiciary but the judicial voice was neither dominant nor decisive.The executive's angst for a 'committed judiciary ',quickened the genesis of the Collegium,giving rise to a brotherhood ”consensus wherein middle-of-the-road appointments edged out better talent. The current judgment of the Apex court could also be seen posited with the new government's questionable choice of heads of various important institutions .The political class has much heights left to elevate itself. Hopefully the judiciary too would listen to words of its lone dissenting judge ,quoting Macaulay’s dictum, “Reform that you may preserve. " .Perhaps the time is not yet ripe for a considered finality on judicial appointments ,given the hiatus between a restive government and an apprehensive Apex court.

Nurturing skills

The steel pioneer TATA ,had nurtured its labour , whose strained skills then helped sustain the later day PSU giants .The prosperous private steel makers, then grew on this rich skill base built over time .It takes an eon to learn skills ,together with the foresight to nurture them.Modern day approach to skilling is hollow .The Japanese management jargon of the Maruti plant of the ' 80s , had for decades misted its labour policies ,with 40 % of workers employed on temporary basis for cost savings ,with scant regard to preserve skills .Managements would rather think of shifting plants elsewhere than interact with with the worker to safeguard his interests and in the process, the skill banks that need constant upgrade on the job .Why lament the lack of skill, /dedication in Indian labour ,when we treat them as mere wage earners and not as artisans .Without a wider perspective as this,no program can be fruitful .

RBI's El Nino moment

.Central Banks world over,are much like weather watchers that analyse universal and endemic data /trends to assess forthcoming economic scenario . More than an open fisted rate cut announced by Governor RBI, on Tuesday, his indication of a favourable ' El Nino ' for the Indian economy would assist market sentiments. While he may cajole the monetary monsoons to be generous, the government has much work on its hands.The reservoirs are worryingly silted with NPA s to reduce effective capacity and the distribution canal network do not yet,reach marginal stakeholders in the economy. Though there was ample liquidity ,banks were hesitant to lend fretting over their balance sheets.This is likely to change with the RBI 's rosier projections on growth,although it trimmed GDP forecast from 7.6 to 7.4 %..Our markets are mature enough to factor in all this and its initial exuberance duly toned down before closing ,yesterday and the trend has persisted .

colours of corruption

The ethos of political parties today seem to be streaked with corruptive colours of rust , though to differing shades .Increasingly this colour ,being woven into their leitmotif ,to the extent that even as one adopts it as compulsion of coalition,the other does so on the need for party cohesion !.While the two have been dictated by their head, even the promising debutant AAP ,seems to follow the same path but through the heart, much like a teenage rebel . Indian Democracy seems to have been practically usurped by parties and little is left to the common man who is content at being given the sop of periodic elections .And thereafter , any which changed dispensation ,does little to graduate from base levels .The one tool, the RTI, is allowed operation on a selective basis at the mercy of a willing beaurocracy..The citizen remains the puppet for which he too must share considerable blame. Political doyens, media and observers can only advice from the sidelines as the parties freely go about scheming for increased tallies in elections of every kind, that seem to go on ceaselessly across national arenas .

True democracy

An African -American of Kenyan origin becomes a senator of a US state,fails to make it to the House of Representatives and yet is elected to the highest office of the land in the first attempt. Now an Indian American, already a state governor ,has announced his plans to run for the President of the US .More than the individuals, it reflects on the basic strengths of a nation that not only believes in equality of opportunity for all but practices it with equal verve .We who lay no less claim to being a bigger democracy in size ,found it anathema to see an Indian citizen of foreign origin ,duly elected as an MP,as a prospective PM. We might even exult in owning an expatriate Jindal should he be anointed to high office next year , but are we not as ready to disown the resident ones ,just because he or she holds a different view point.

.Govts understandably may not be able to follow the dictum of meeting salary & pension outlay from income ,as they have to cater to social equity and seek funds for long term growth. This must come from borrowings.But the fig in the said study of Net Present Value of future pension payments being laid out at 2/3 of the GDP ( (2004), is stunning .The inexorable burden of Pay Commissions hastens a Grecian tragedy .Another study says that OROP implications would push up outgo many fold ! All this portends heavy debt. Our total debt to GDP is at 66%, on date.Big ticket plans to pursue growth would boost the debt further.The enormous delays in getting projects running ,make for greater debt.Without serious application of mind now ,the burden is bound to spiral. National debt of Japan is at 230% of GDP and it has been battling stagflation for two decades now.Greece at 350% ,went bankrupt.The US at 103 % is not bothered as it prints dollars ,that unlike soveriegn bonds of other stressed nations whose coupon rates shoot up, actually gains value ! . We may be happy to limit a transient fiscal deficit today,but the silent burden of debt we would be building up by way of extravagant pensions for the privileged , not capping the number of govt jobs, leaking welfare schemes ,all seeding inflation,could well render us incapable of servicing our debts .The NDA may gain in politics today ,but should it retain power ,its next avatar may have to succumb to economics. llll. R.Narayanan ,Ghaziabad . llllll

Divestment of PSUs

Another government and a renewed attempt at divestment in PSUs. The issue has never been addressed with the pragmatism it deserves
Command economies of the socialist variety have held on to state run enterprises. ,far beyond limits of business prudence.Every nation has made efforts to take up privatisation of PSUs and the success thereof has been proportional to political will .Russia bungled and handed over vital units to powerful oligarchs .China did slightly better and yet it's top 100 enterprises are still public owned.Britain under Thatcher went on a ideological spree in the 1980s and sold off major state run businesses .In the process her critics accuse her of wiping out 15% of the British industrial base.We have gone about divestment in fits and starts.Most of our sick units are insolvent but yet liquid.These can still be sold off without much damage to all stakeholders, as they need fresh management and technical upgrade.The political will is all that is needed.As regards PSUs that are doing well, private shareholder participation will give them the requisite edge to be competitive and commercially evolve into business majors.Let us not sell family silver only to pay back debt and recover from deficits.We must do it because it would make business sense.Divestment

Greece

Greece, the weakest link  of the euro economy, has been in a  relentless credit squeeze since 2010.Its travails are increasing with time despite bail outs  and debt  restructuring.Post 2008, the flood of liquidity unleashed by central banks world over, has rendered its economy even more vulnerable. Eurozone  states, borrowed cheap  and squandered it on generous welfare schemes, when they were economically better off. That  fiscal madness loaded on them debts up to 350 / 500 % of national GDP.
        Text book approach to impose austerity on Greece then followed .Instant austerity is never a morale builder. For the individual nation, austerity imposes  prolonged unemployment, destroys current  and potential output by eroding the “human capital asset ” of the unemployed and  hits  at the bottom of the income ladder far more severely. .Sadly though,Germany as the lead economy, had been less than willing to put its shoulders to the problem of its fellow euro nations. 
        Today the exit of Greece from EU appears even more likely than before.Stressed nations as Greece, must achieve the best variant of fiscal stimulus that boosts job creation and this would  need universal support and in particular, from the euro collective. But attitudes are only hardening by the day. The lessons of cyclic depression in world economies are clear- cheap money, excess credit,excess debt and huge deficits.No wonder the RBI governor tends to err on the side of caution ,despite pressures  growing on him to lower key rates.

Maggi

Lead remains in the soil for hundreds of years. Children may be contaminated more during play than food intake .Nature has seen to it that even when lead levels remain high in the soil ,it is not taken up by the plant beyond a limit .High ph level and organic vegetable matter in the soil,will reduce this further.Thus Maggi is no different from any other human intake,cooked or raw,water and air.Such attenuated national concern must focus on lead and other natural contaminants,not on a product.We then miss the wood for the trees.Sadly though In the process ,we have allowed a mere noodle to dethrone overnight ,our long standing Enemy No 1.Our neighbour is not pleased !.

Delhi in a pincer

.Delhi was for long being managed municipally, like any other mega city.Progressing rapidly as the capital,land became a prized asset.As 'the ' power centre, the bureaucracy wanted greater administrative space in a happening city.But none wanted to 'run ' the city with a burgeoning population with the attendant toil and sweat .Babus found the cleverest way.They made it a strange political-administrative animal- half state -half UT !
The ' elected ' Delhi government was evolved as the cart horse to carry the load .Babus kept the police with them ,to imperially ride on Lal batti culture,took away the powers of enacting laws from an elected Assembly that could impinge on their self anointed privileges and of course jurisdiction over capital land valued above gold.
Delhi citizens enjoy but a pseudo democracy wherein they painfully elect 70 MLA s ,an euphemism for work supervisors.The question is why the problem now.The Congress and BJP had tacitly shared the pleasures till the other day when an outsider AAP came in to upset their Apple cart.
The issue has fortuitously come to a boil now.The Apex court has before it the case of the people sending in an elected government on one hand and on the other ,the feudal elite at the capital ruthlessly guarding their fiefdom.The outcome has connotations beyond Delhi.Other states may like to rework the concurrent list.Federalism must go beyond allocating greater share of finances by the centre.It must begin to embrace areas of far greater import.The outcome at the Apex court has less to do with what happens to Kejriwal's government but much more on whether the nation would be gifted with a progressive federalist structure.

Modi ,the year one

An assessment of the first year in office of the BJP can not be a review of the entire canvas that today has a few bold splashes and many hesitant strokes.The loud theme of instant industrialisation it started with,stands faded and now one of empowering lower rungs of the economic ladder ,stroked with brighter hues has come into main frame.External relations that were in a silhouette till now ,got an extravagant Impressionist class. The second year may well see the enthusiasm for inclusiveness die down with a poor monsoon and the industry starved of funds and policy reforms,in continuation.Year three ,the Afghan -Pak muddle could peak and set before us an acid test of our extensive diplomatic bonhomie of year one pitted against raw global realpolitik of pure self interest of the players.The fourth year could see global economic recovery but our domestic industry may not be at the dining table as it would be battling three years of neglect.The fifth one will be the traditional year into elections when except campaigns,nothing moves. Today is the time for the BJP to step back from the canvas and conceive of a composite theme rather than yielding to attractive but transient subjects.BJP from within, must learn to place a sense of of collectiveness much above the present one of unitary command

Gold

Gold is more than a hedge for Indians, it is an attachment.At best the temple trusts that hold huge cache of the metal will count for the scheme ,not households. Even here the proposed scheme needs to be made attractive and yet the government will be the ultimate gainer as it will have greater leverage. On the monetary front,gold was the shield against inflation  and corrective  monetary measures  kept the balance.But when monetary polices are upended,   deflationary recession gets pitted against  inflationary pressures of  the monetary expansion by the world's most important central banks.Global Quantitative Easing (QE) has  injected a huge $10 trillion of  into the global economy.  

   The crisis in Cyprus  saw the spectre of  imminent sale of its gold to meet  debts ,creating a fear that this would spread to other ill placed Eurozone economies  that  together account for 18 percent of all central bank held gold. .Little later  the two largest sources of demand for gold, India and China,  ,a consumption boom that started  with the onset of the financial crisis, was abruptly halted . Gold prices now plunged  

  Gold prices have been  rendered  multifactor-sensitive and the metal has not been able to compete with the dollar or bond market as the spread in gold is far too small to match the capital moving out of any stressed economy, Despite this ,when bullion  prices dip, buyers use the opportunity to buy more at  reduced prices and the spiral resumes.The fourfold increase in bar and coin retail investment from 2002 to 2011,proves that buying physical gold flourishes in blind addiction..In today's global economic maze even the best of schemes as these ,can not match the unpredictability of the yellow devil.

need for trust

There has been mixed reactions to Modi's extensive trips abroad,one that of domestic neglect and the other of enhancing the nation's image at trans national level.The PM has much to thank the UPA that had the policy framework laid out for him,as he had to change very little of it.Modi is a pragmatist to the core .Realising that our economy Is largely predicated on global recovery,he left the domestic chores to his ministers and is using the freedom and time thereof to mould and fine tune our external relations.This would prove handy when the economy recovers and all it would require is the tying up of loose ends,here and there to boost trade and our own exports.Modi must now find a way to anoint a strong No 2in the cabinet to take care of needless ideological diversions from the parivar and monitor progress of reforms.For that he has to learn the great value that trust can bring in.

Pied piper

For years now,the marking in the 10th and 12th standard public exams are getting to be astronomical.Top ranker scores 399 out of a400 ! A reflection more on the current system of rote and excessive practice.The emphasis on grasping basics to lay foundations for creative application,is almost vanishing .The increasingly narrow straits that lead to higher education has been placing an absurd premium over school marks.Boards at the state's and centre,over the years have outdone each other in liberal award of marks ,to showcase admissions of their wards into colleges.At the DU,we had the mathematical puzzle of a cut off in excess of 100% for students changing streams. We had touched this absurdity long back and the pied piper of school marking ,continues to lead us as so much mice into nowhere.The HRD ministry should be fighting this Dragon and not be engaged in tilting at windmills.

Democratic mining

Piyush Goel,coal and power minister , in line with his government's penchant for riding on enthusiasm ahead of reality,has promised 24/7 power to everyone in five years !He ought to be realistic. Even the Apex court had opined that auction is not the only way to allot natural resources.But then retracting into a shell of self doubt and an equal lack of self confidence and will,governments have dared to do it no other way.If the UPA had a flea - market sale of coal blocks,the BJP elevated it to the prim and proper levels of a Sotheby auction,where coal was rendered captive to high end producers who are akin to -art collectors ! If the former was flawed on speculative acquisitions,the later purely on bid values.In either case,coal has become a futures commodity not an urgently needed fuel for growth.No wonder China is dismissive of our democratic approach to material progress

Leadership

The gist of Lee Kuan Yew's philosophy : build up a strong economy first to acquire standing and strength and with the resultant spare resources, ,socio- political equations leveraged.His nation was small and had no natural resources,dependent on external source for most of its drinking water and even sand.It's defence aircraft were being parked in Australia !His only resource were people and he recognised that it's multi ethnicity gave him an unique mix of genes of hard work,innovation,commercial trading acumen.He in turn provided in martinet style ,the glue ,vision and direction.As a trading hub his nation was centric to the economy of most global nations and thus Singapore's well being was everyone's concern.Lee was a leader and humanist far ahead of his times ,steadfast and never doubted his convictions : leadership qualities that has no relevance to the size of a nation.

economy at cross roads

.Dr Desai is right , UPA-II did manage to deliver growth through gradualism in policy ,only to be muted by gross lapses in implementation.In contrast, the growth mantra that blessed political fortunes of  BJP is to yet  propitiate the deities of Economy. BJP's "auction syndrome " ,perhaps more in selective disassociation with actions of UPA,  is being pursued with  speed and elan, to ostensibly  fibrillate and  regain a healthy pulse.But there could be booby traps down the road. 

     First the  existing huge exposure of PSU banks to the infra sector  stands to explode on fresh demand ,post  quick fire big ticket auctions everywhere.Already PSU banks are ailing from high NPAs. Big business houses are yet to figure in the list .Their reports  due next quarter, may add to the woes, since global economic recovery particularly of the US ,is still uncertain .Restructuring the debts then , would invite a protracted  burden on the exchequer and hit  fiscal balancing for far longer.Then again treacherous crude prices could skew the ledger further.

        Second ,high costs of acquisition  of vital resources,touted today as a  bounty,would shoot up input prices to every single industry to  open the floodgates for inflation .Exploitation of sub subterranean resources come with inbuilt and long gestation periods and advantages through economies of scale, would only kick in, far later.

        If  in  the single minded pursuit to control of inflation , the PM ,Ms Thatcher in the  '80s overlooked growth , all but abandoned UK's industrial policy and wiped out more than 15% of Britain's industrial base on bad  monetarism, we today, might well be doing the opposite, singularly pursuing growth,  to re- invite a larger avatar of an  inflation that we are bitterly engaged with, for more than three years now. 

Systemic neglect

Two events highlighted in most media this week, must trouble us all deeper than what it portrays. One,that of the unabashed copying in school exams and the other,the brazen sale of rail tickets by touts. Clearly the education system is in great disrepair as the teaching standards are so poor that students find exams as an ordeal. Perhaps many schools would turn a blind eye to mass  copying so that poor pass results do not betray their lack of teaching standards / ability.   

     Dubious marketing in  Rail tickets was expected to come down drastically on computerisation. It has boomed instead.The government had soft pedalled the issue for too long to have allowed the racket to take deep and professional roots.The best amenity for a rail  passenger is a hassle free confirmed ticket. All else come later.

     It is to be noted that touts,in any description, are a by product of a neglected educational system that blocks avenues of normal employment.Systemic neglect in any area, be it social,educational, economic or in administration sets up  a by product, what has come to be  accepted as , jugaad  that gains legitimacy over time.Repair then becomes extremely difficult .

Govt as the trustee

We culled the best from global socio-political wisdom to painstakingly evolve our Constitution. It stands out as the gleaming tusks of ivory of a magnificent and caparisoned elephant. But then we have the business teeth too inside,in the form of laws, ordinances and fiats that often ruthlessly  trespass the citizen's rights.An idealist younger generation that goes by the ivory  was sanguine over its guaranteed rights.It is to the credit of this  generation that now demands that the Constitution be respected and that there can be no two ways to interpret its basic tenets and postulates.An overworked judiciary has yet again stressed on the need to bestow greater regard and attention to the written undertaking that " We the people' have given unto ourselves.The government must realise that it is as much the custodian of people's trust ,as the courts.

Agro insurance

Our agrarian sector,  vast and fractured into small holdings, ought to have had in place  a well designed farmer friendly scheme for crop insurance . A mai baap  sirkar found  leverage in handing out doles to nurture vote banks and the  ' leakages ' therein ,provided a share of the " political " largesse  to many down the line.
With pragmatically designed insurance schemes in position ,  we could have been richer today in actuarial data ,developed enviable agro- data bank and the agro -intelligence that goes with it , help set a direction to optimize agro-productivity and nodal agro -processing systems as also streamline competitive agro- marketing, as collateral benefits.As for the small and marginal farmers, the government ought to assume onus of the coverage through  comprehensive  insurance .The amount it would defray as premium,would be less than what it could end up paying subsequently as relief / dole.Kautilya (300BC ) had advocated tax exemption for distressed farmers and two millennium is time enough for the government to go in for effective modern remedies .

Make in India and global trade

There are many factors to be reckoned with .US  with its virtual printing of dollars through QE  while debilitating  its economy, strangely strengthens its currency ! .The flood of liquidity from ECB and Japan has added to the problem.  Persistent  imperfections in an international monetary system based on the dollar  skews exchange rates which in normal times should spur trade to reset equilibrium.But Global Trade is in descent, as the US is unable to generate demand , India  unable to step up supply due to poor growth of infra sector. China's economy is deflating,  saddled with idle capacity.The euro zone keeps wrestling with  its  unresolved structural issues carried from birth and  South American nations are  high  inflation levels  with huge fiscal deficits .

    .A new twist now comes from plunging crude prices.Data of past four decades show that elevated oil prices had been co-terminus with surge in global economy. Global trade indexed at 50 in 1990 improved to 100 in 2000, shot up to 250 in 2008 ,prior to the global crisis.Crude was languishing for long prior to 1990 at around $35 . shooting to an unprecedented $145 in end 2007. When global economies suffered post 2008-09 ,Brent crude fell to $90 by end 2010. In such a backdrop, prolonged low price of crude could portend a stasis in world growth and hence trade The  remedy ought to lie in an universal resolve to  re-kindle world trade and place it at  a far higher orbit to enable regain global economic order. Make in India is tied up with an upsurge in global trade.

Facets of acquital

The acquittal of Jayalalithaa has a lot of facets to it..With highly differing verdicts at the subordinate and the High court,perhaps the denouement must lie at the Apex level.Personally ,Jayalalithaa has found legal relief from her long ordeal which she faced with fortitude and a rare political acumen with which she enhanced her image even out of office.Not many are as capable.At the state level she stands supreme and at the national level she is beholden to none as she had waged a lonely battle all along .It would be evident that on centre - state relations , she would be setting her own terms .This has been her forte,more so now with this new aura.

Losing direction

A Sehwag score of 282 was perhaps not so much because of the Modi charisma ,as his promise to a thorough  spring cleaning .The year did see some showcases dusted, but the nation is getting restive over growing bulges under the carpet .The dust is returning.. Systems are becoming bureaucracy -centric and  watch dog  institutions   toned down in an desperate attempt  to induce quick decision making. GoMs are now passe and Secretaries are in.But how effective could this be  in the backdrop of a stymied global economy.

         For a perceived spurt in implementation , the importance of ministers was being  lost sight of. To create a pro-poor image, after Opposition barrage ,these very ministers are now pressed into campaign mode, to counter  spreading public perception !.Inclusiveness remains the vital factor. 

        Major welfare schemes were pruned and an ordinance over Land bill was sought to be pushed through twice  but  an equal gumption is absent in bringing the curtain decisively down on investment sensitive issues like retrospective taxation or even in toning down discordant notes from  right wing of the orchestra. BJP is walking on unsteady socio-political  planks to reach growth.The UPA had done exactly  the reverse, much to their discomfiture.

By hope nor hype

Markets largely mirror the state of an economy.There is an unmistakable deja vu in the on going uncertainty of bourses ,a throw back to the UPA II era.Our economic fundamentals have hardly changed from 2012 /13 to an year into a new government, for the major reason that global economies are yet to recover from the post 2008 upheaval.The growth levels in UPA II were never alarming given the universal scenario.The government fell due to political faux pas and a perceived administrative ennui exploited by an impatient opposition.BJP in its anxiety to leverage the prevailing stasis ,assumed that a political change would usher in an economic revival on its own .It disregarded the basics and worse, engaged in projecting a larger than life image of itself.The complexities of a global economic dispensation are not tackled on hope or hype .BJP's performance  is contingent on major world economies turning round with in it's current term .Meanwhile it has to manage the economy more by its wits and less through its ability to change things.

Louder than thunder

On this fateful Wednesday the capital heard a farmer's voice louder than thunder,post mortem.It has frozen the government's quest for its Land bill,forced the likes of AAP to a serious introspection on the brand of movement politicking, placed a rich repast of issues before a famished Congress that has no idea how to handle them.It has made the visual media go berserk with stories served out like two - minute noodles.In all this the hapless farmer living and dead ,has none to spare deeper thoughts on his plight.But this year's El Nino too could be as cruel to him.

Bravado

There has always been an unmistakable streak of bravado associated with the BJP,imbibed from its right wing roots,which they passionately wielded to reach today's  high  political podium .No wonder despite being caught in a pincer movement over the land bill ordinance by an united opposition, it has gone ahead and re-promulgated it,at the risk of getting estranged from the farmer. Now rattled by the anti -poor tag over land acquisition,it  came up with a higher crop- compensation package ,but it's discomfort over this is not hidden. Faced with ground realities post elections,it could not jettison any of the UPA's inclusive  schemes.But it's natural aversion to foray into any space  left -of -centre ,will not allow it to dwell too long over the type of socio- politics so fervently practised by the Congress.

      The same streak  has them jousting with the judiciary over appointments and yet to  press ahead and take a side swipe at them over " perceptional judgements" .Then, it remains flummoxed by its coalition ally in J&K on a daily basis,over any and every issue that leads us to wonder if its political move was a grand strategy or plain naivete in wading into waters of unknown depth.

But how to explain its lack of will to riposte with its own fringe elements that troubles it with sporadic and fragmented ideological diversions  that  hamper its core agenda of growth 

Auditing the auditor

 .IT firms essentially have huge cash assets generated by the very nature of their business. Channelling spare funds to speculative areas as real estate and the like to cover the transfers invites accounting frauds. The Satyam saga is now seen to have been deviously scripted with pliable auditors.The law has since been amended to put greater onus on the auditor, but its usage will have to wait till after the next fraud. An ' audit forensics ' system could cover audit reports from medium / large firms through a well designed technical scan ,the auditor / audit firms then evaluated and where nEed be ,called to question.The prospect of a regular ,even random audit scan would serve to elevate the quality of the audit and raise the personal stake of the auditor.The surprisingly long delay in the Satyam investigation would only help trigger suspicion on a selective sanitisation of evidence , for whatever reason.

Kink in BJP's DNA

When a party that breaks the 30 year jinx of  coalition governments at the Centre with 282 seats on its own, ends up with just 3 seats in Delhi; there is lot more than faulted electoral strategies of the BJP  or a runaway AAP charisma. The Sangh parivar has never allowed individuals to overshadow it. Modi perhaps continues to remain an outsider to the core of the parivar .One must wonder how an experienced Modi allowed himself to be cut off so effectively from the domestic scene as fringe elements were riding high on the  hindutva bandwagon  , the PM  left an onlooker and confined to a busy calendar of managing external relations.The damage has now been wrought.There clearly are die- hards in the Parivar that believe  Modi has been commissioned just to swell the GDP and that all else is out of bounds for him !Delhi elections behind us,we certainly have not heard the last of such   internal contradictions, long enduring in the BJP.

Wi -Fi in Delhi

Cocooned as we are as a nation  in a mundane single frequency divisive politics for six decades now, we are blind to the exploding horizons of modern communications that opens up myriad frequencies to the power of connection ,information and a more fruitful existence.Visitors to Sri Lanka  can get a SIM card on arrival that empowers them with an identity and a personalised tool during the stay,for superior and cost effective communication . In Australia not only the airport at Sydney has an instant and hassle free WI-FI service, even the entire Darling Harbour area , the heart of commercial Sydney,has instant  free connectivity.At Changi airport of Singapore,you can get a WI-FI password from any of the many help desks.And look at Delhi. Not one" free  "WI-FI service flashing on your mobile,has ever worked since inception !

If modern governance is to be predicated on intense use of technology,how is it that an agenda of the Delhi  CM ,should invite a wry smile from the very elite that so vehemently propounds the empowerment of the  common man who must hence onwards,have an access to an effective ambient information stream to meet his increasing needs of  technological interface.

AAP-The party needs to continue with its idea

For those who looked forward to an AAP win, it has been a more than a very  generous gift. But vignettes  of the brief Phase I of the Kejriwal rule could stand to bring in more apprehensions than euphoria to their plate.Should the AAP be beset yet again with mavericks and individualism as against an integrated and focused thought process of a more mature political entity, AAP may pass into history in five years or less.And that would poor repayment to the emancipated Delhi electorate that has braved all odds to elevate the party to a near cult status today.The AAP must start with the earnest belief that it is cut out for a far greater regional role and to perhaps extend their range  over time,on the national canvas.With 65 seats, against a resurgent BJP,it has grown big enough to venture through far  taller portals .More than Kejrwal, the responsibility for shaping the party's future rests on  its  founder members and the immediate penumbra around the party.We have seen the Congress so sadly afflicted from the top and the BJP needlessly ,from the fringes.Things would  be more difficult for a fledgling AAP.

Kink in BJP's DNA

When a party that breaks the 30 year jinx of  coalition governments at the Centre with 282 seats on its own, ends up with just 3 seats in Delhi; there is lot more than faulted electoral strategies of the BJP  or a runaway AAP charisma. The Sangh parivar has never allowed individuals to overshadow it. Modi perhaps continues to remain an outsider to the core of the parivar .One must wonder how an experienced Modi allowed himself to be cut off so effectively from the domestic scene as fringe elements were riding high on the  hindutva bandwagon  , the PM  left an onlooker and confined to a busy calendar of managing external relations.The damage has now been wrought.There clearly are die- hards in the Parivar that believe  Modi has been commissioned just to swell the GDP and that all else is out of bounds for him !Delhi elections behind us,we certainly have not heard the last of such   internal contradictions, long enduring in the BJP.

The mirage of low crude prices

The IIP had been playing hide and seek for a while now and so too has inflation.We are discovering that low commodity prices and low inflation alone are no longer enough for economic revival .There must be newer theories of global trade and economics operating beyond our present Ken.
    The continued plunge of crude prices ,inexplicable in itself, gives us no clue whether it would now signal global economic recovery or a downfall!.
RBI's conservatism on key rates was no different when WPI was at 18 % to the current near zero. While shibboleths of old economics  need to be dared by newer apostles of global economics,there is a strong case for easing key rates towards the larger goal of boosting the manufacturing sector ,growth and job creation .Low commodity prices could be deceptive for growth. Crude at $35/40 may induce one to take his car out for a very long drive ,but only to return home and find himself ,jobless !.

CAG -Has done the damage

he spectre of a 1.76 lac Cr,loss so hamhandedly created by the CAG is still ,haunting the telecom sector to distraction .Surely had such a huge bonanza been had by the bidders at the UPA regime spectrum allocations ,today the telcos would not be reeling under a 2.5 lac Cr debt.We must admit that " faulted" process of allotment gave us one of the lowest tariffs globally and rocketed the. consumer base .Today the telcos are fighting both the lack of spectrum spread and inadequate revenue.Govt.must release additional widths and ensure that both the telcos and the consumer jointly climb the victory podium.A highly web enabled nation would be a national asset by any reckoning.

Raid of the right wing

There is much in common between the second terms in office of Obama and Manmohan Singh.Both had a core tenet of inclusivity in their politico- economic  outlook.And both faced extreme right-wing resistance.Neither the most powerful executive ,the US president nor the erudite and well read PM of the largest democracy could weather such orchestrated antipathy.
  If Obama's considerable efforts at re railing the US economy is being deliberately ignored by the Republicans,the BJP ever critical of Dr Singh,is now paying him backhanded compliment in following every economic policy of UPA II.This only underscores the flip side of large democracies where high decibels could well lead to low GDP !.

PSU Banks-Redesign

Even simple rural banking cooperatives have not improved in ten decades.All their ills of dual control and partisan interests got needlessly transmitted to the more modern PSU Banks.It need not have been so and this resulted in unprofessional management systems.The advent of private sector banks did improve the quality of govt.banks.Changes in the regulatory framework, rising customer expectations, shift in the employee demography and changes in technology have emerged as key drivers of change for the Public Sector Banks. The public sector banks are gearing up to meet demands from expansion, optimise resources, increase their presence across the value chain, renew focus on R&D and innovation, create a  better performance culture and service customer demands effectively. 
Government must now work towards cutting its stake This will help in raising the much needed capital through divestment route, aid in systematic recapitalization and more importantly bring in capable leadership that would perform with confidence and ability.

Planning commission

Does planning matter. On the basis of national income and other indicators, it would appear to have made little difference. Paradoxically, the highest growth rate of national income was  achieved during the Fifth Plan which, was mostly non plan period.The rate was 4.7 percent per year and  the second highest rate of growth (4.1 percent) was on the three years (1966-1968) when the planning exercise was in abeyance and the commission was on near holiday.The lowest rate of growth (2.4 per cent) was registered during the Third Plan (1961-1965) which, by all accounts, was the most successful of all plans and laid the foundation for much of the basic infrastructure of the economy. Going by national income figures,  high rates of growth seem associated with poor or indifferent plans and low rates with forceful planning activity.
.The Soviet Union and China had their disillusionment with frenzied central plans.We gained in agriculture in the early plans and were nimble to switch to economic reforms in the 1990s. Centralised beaurocratic copy book exercise have been known to be  high in meticulousness and low in informed imagination.Aayog or commission ,in today's flood of statistics we need consummate economists and thinkers who can see the future more clearly than many.Should the states feel diffident over central plans the finance commission must find out solutions .This is far better than reworking plans.

Judicial selections

  The President has given assent to the 121st constitutional amendment bill on selection of judges to the SC and higher courts. For decades we had the judiciary having the final say in appointing its judges ,but now the executive would have the upper hand.Strangely though ,the change has come about when both these august institutions had been losing as much sheen as the other.Whether the amendment would be challenged in the courts remains to be seen.
      The US Supreme Court appointments are being done by the executive for ages now.Our problems rest in the wide spectrum of cases handled by our SC as against preponderance of constitutional issues handled in the US.That makes our higher courts seem more active and mundane and politically very relevant.That being the case we would,over time,be necessarily  swinging between processes of judicial selection, for quite a while yet.

2015- A rerun

1 Jan 2015

The Left govt. in W' Bengal ran one of the finest PDS systems.But what stayed in the minds was its archaic policies on industrialisation and a cadre that had stepped out of its control.The Congress delivered on GDP in UPA I,but subsequently,had the NAC ruining policies and then failed to defend its bureaucracy from a berserk CAG and a wayward CBI. The two years of administrative stasis that followed, wrote it's epitaph.
The BJP contends with the parivar that increasingly believes that it has authorised Modi to carry the sceptre of governance only within the confines of its prescribed hindutva agenda .And given that Modi is wont to plough a lonely furrow, with his ministers watching from the edge of the field ,the BJP rule could in many ways end up like the ones above.
Perhaps BJP is all attention to state elections in order to wrest control of the RS.But that is a long time yet and politics is so unpredictable.A loss of credibility of the government may be quicker coming than improved arithmetic in the Rajya Sabha.

Jan 2015
Global economy stays healthy when it flows freely and in quantity. Post 2008 disparate monetary policies across nations has reduced it to a trickle by impounding through rates / regulation in places where seeds of growth were already sown, only to face a liquidity drought . Later in regions where crops needed weeding and insecticides, as financial oversight and punitive action,it was  flooded with excess money . We thus stood  to lose in both regions .
If we had a vigorous international trade going  each nation  would have added its internally circulating economy to contribute to the central current.Indoing so many of the ills of an over circulated internal economy, would have  found welcome relief , be it  fiscal / current account imbalances or poor levels of  employment.But it is precisely when every nation needs to push for greater trade and economic cross flows, most would get back into a shell of trade isolation. In doing this things can only get worse. Through six long years  both growth and inflation has eluded many a nation.Low oil prices and low inflation today are as ineffective for revival  ! Time that  global trade and economy is freed of economic shibboleths of old and fresh understandings  dared. We need newer global saints of economics.

OPEC and its relevance

Data of past four decades show that elevated oil prices had been co-terminus with surge in global economy. Prior to the economic crisis of 2008,most nations , in particular the advanced economies were doing very well and world trade was flourishing.Global trade indexed at 50 in 1990 improved to 100 in 2000, shot up to 250 in 2008 ,prior to the global crisis.Crude was languishng in the sedantary decades prior to 1990 at around $35 . The decade 2000-2010 was significant for crude oil ,both for its demand and pricing.As global trade peaked so did crude shooting to an unprecedented $145 in end 2007. When global economies sufferd post 2008-09 ,Brent crude fell to $90 by end 2010.Ithas been averaging $115 from then on,till the recent big dip .
During this period,the epicenter of growth was also shifting to nations dependent on oil import and so has the pattern of energy consumption.Insuch a backdrop, prolonged low price of crude portends a stasis in world growth and hence trade .Export driven economies like Brazil ,China ,in the absence of growth led demand elsewhere ,may not be as enthusiastic over the price dip 

Leave it to RBI

dEC 2014

Russia is dependent on revenues from oil and contributes around half of the revenues of the government and makes up for two-thirds of the exports. A study puts the break-even cost of the Russian budget at an oil price of $105 per barrel. Foreign investors are selling their investments in roubles and buying dollars, leading to an increase in demand for dollars vis a vis roubles and the crash of the rouble .The Russian central bank recently estimated that capital flight could touch $130 billion this year.
The immediate lesson for us is to go slow on easing key rates as the returns on government debt are on the higher side vis a vis other countries and lower rates would kindle outward flow of external investments. And that would not be good news on the rupee front.The FM would do well to be patient on key rates and  let RBI use its judgement .

Manufacturing, key to growth

 Hopes of recovery recede with industrial production contracting by 4.2 percent in October, mainly on account of a drag by the manufacturing sector and a dip in the output of capital as well as consumer goods.Manufacturing ,that constitutes over 75 percent of the index, went down  by 7.6 % in October as compared to a dip of 1.3 %  same month last year. We have come to  a strange pass in our economy that neither inflation that  is tending to zero nor any lowering of key rates seem to be holding  much relevance. Manufacturing ,that once was our mojo was abandoned steadily  Chasing the chimera of IT boom, every major manufacturer ,auto,steel,cement ; preferred to put greater faith and attention to founding big scale Financial services / IT.Of course many had found short sustenance in these two areas, while manufacturing languished in relative neglect. In fact Tatas have largely breathed easy of late,because of TCS.

 Nations across the globe are having hiccups in their economies too But they have kept manufacturing as the prime concern,.Germany is showing steady but modest recovery since October ,in this sector.On the contrary,we are shortsighted enough to have embraced tightly a seasonal ally in the likes of IT that has many other suitors.A dipping global economy would further reduce the size and portion of this pie.It would not be easy then  to switch back to competitive manufacturing as it was to jump off it.

UBER

.dEC 2014

Uber came up as a transport enabling service,serving across global cities , from a location in San F'risco ,US. This  " E-Cab " is like what is E-tail to kirana store, .Initiatives as these  has   positives for the customer ,provided they are regulated  for consumer protection.Alert babus of Fin ministry had put their acumen to work,anticipating issues of unaccounted money transfers in Uber.But the story ends there.

        The MHA today advises a ban of this service ,for want of both knowledge and application of mind. The minister of transport feels banning solves no basic problems of passenger safety.Like their fellow mandarins  in  MoFinance, why were those in Home and Transport, not as shrewd and proactive. Had they used their wisdom, the rules and systems guiding the plying of services as these would have been set, to be fine tuned over time .There is a lot more that babus  could be doing , using foresight and experience ,than roll out ban orders. This serves nobody.That said,the way we fall for Apps, we seem to be  more sensitive to technology, than safety of women.

Parivar and BJP

 Every Management  operates through both line and staff functions .So it was with the BJP, that came into being as a  fledgling line unit after the Parivar decided to set up political shop. .It took four decades for the party to be  a going concern . But its umbilical cord remains joined  and as a result the  staff function continues to often prevail over the line responsibilities . Ministers, while striving at  line targets in Delhi need also to act on staff advisory from Nagpur.Their performance is assessed at both of these directive nodes.The PM is no exception . That is the way the organisation is structured and  has remained so, in or out of power. Hardly months into a position of enviable degree of  political ascendancy, the Parivar can not afford  relaxing  its control over  the staff function. Not that it cares less for a possible dent in its party functioning and governance ,but more on zealously guarding the ideological tenets that has been  its raison d'etre.
     It was no different in UPA-II,  where the Congress high command eclipsed its own  PM,pandered to the likes of NAC and took away his power of speech. The Sangh on the contrary, seems to have sanctioned the   PM  little else besides speech ! Despite this ,Dr Singh did manage to animate reforms that are now being followed by the BJP.But when under a  crunch, the Congress abandoned its second term PM . The parivar too may not hesitate to  find a scapegoat , should poll promises wither away in bud.

E-Retail

 Dec 2014
With economic dispersal  came vastly increased centres of earning and population shifts .Services of every kind had to follow the clientele, not only to be relevant but to cut down on cost and time of delivery.The burst in passport service centres became essential as affordability of travel shot up.Now we have a series of economic strata between the rich and the erstwhile common man and the ranges of spendability that comes with it.So too have a range of goods that is tailored to meet the ' Need -Cost Index " of respective niche consumers.Kirana stores are to E-Kommerce as Post Offices are to E-Banking.The products and services offered are different and yet are required to complement each other.The Malls have not displaced the kiranas, only resizing them.Each have a dedicated customer base of their own. So would E-Tailing ,that has accorded greater value to time,a stressed commodity in modern living.If the kirana provides a friendly nod at the shop counter, the Malls provide an overall ambience for spending both time and money and a E-Tail courier dispassionately hands over the parcel to a ardent TV aficionado or one busy earning his keep from home with a computer.If a customer chooses the way he shops,the seller  is equally quick  to improvise his marketing.It is not the other way about.The axiom is that a customer and his goods can never be separated and any clever merchant would keep ensuring that,always.

BJP ,slow on the block

Dec 2014
Like many a   formula Indian movie,new  releases come with different titles but largely unchanged scripts. Congress in UPA-I with lesser seats earned good reputation, but mislaid it in UPA-II, with a far larger tally. It had lost the will to sustain, gave up parliamentary toil  in the LS just on adverse arithmetic, and met its nadir. After creating legislative impasse for close to two years and a campaign high on promises the BJP  reaped its electoral rewards . Six months down the line,the BJP is proving to be no better.It is as much stuck in the mud  in the RS,as the Congress was in the LS .The PM is a rare visitor to the Houses as the party finds greater use for him as a Pracharak . The economy trundles along.The all round lack of progress and direction in the government ,is sought to be muted by it through bringing in one  contentious issue after another. The Opposition  by ,compulsion or design, abets in this ,much as  the BJP had done earlier  What we see now , few months into NDA, could well be a rerun of the last years of UPA-II.We seem to have  miscalculated that the BJP was elected to power because it claimed to be very capable .It appears that we have now received a replacement no better than the  defective Congress.Electorate must henceforth learn to read a political warranty,with greater circumspection.

Obama visit

Dec 2014

.With visits by Putin and a little later by Obama to India, the Nehruvian template of an equidistant foreign policy of the  '60s vis a vis both super powers has proved its sustainability over time .It only needs to be recalibrated. Whereas five decades earlier our fledgling economy got wheat and condescension from the US and armament and heavy industry from the USSR our status today stands far upgraded as an economic power of some reckoning. With this comes greater leverage for bilateral politico-economic dialogues. This would also entail astute diplomatic skills pragmatism and political will from our side.That said Russia has indeed been an all weather friend,while the US had at times been inclined to set a  premium  on its  interests in this troubled sub continent.None of these nuances of  real politk  need to cast a shadow over efforts at a diplomatic resurgence. The era of viewing  external relations through prisms are now passe.The visit of the first ever US president to our shores, closely following  Putin,is proof enough 

Leaders of yore

The nation is in a flux over reviewing the role of the pantheon of leaders who helped shape a post -Independent India. The epochal Nehru anniversary provides an occasion.Itis educative that the assessments on each of them vary.But a larger point is being missed: Gandhi,Nehru and Patel together,represented our national ethos that is incomplete without one of them.Gandhi provided the transcending universal spirit , Nehru the global vision and Patel the nationalist resolve.The political class of this lesser era are sadly engaged in in reconstruing our edifice with a third or more of the basic building blocks missing. Seeking power through division and now pursuing unification to meet the onus of nationalistic governance ,has the Sardar being fondly remembered.Same with the Mahatma :the richness of a secular fabric is now an important backdrop needed for the prosperity theme. Given the current globalised economic 
paradigm, the nation is reconnecting with every world leader of consequence ,re endorsing the Nehruvian vision.The appropriation of tall leaders of the yesteryear,selectively to suit an issue of the day, is to remember none of them wisely.This generation must elevate itself to an extent that it throws up afresh another mutually complementary triumvirate, to deal with the changed times and aspirations.

Growth waits

.
Nov 2014
Economic recovery in India still uneven . Key interest rates have persisted far too long . We must admit that RBI interventions on checking money supply as a tool to rein in inflation have elevated the borrowing costs and the global economic stasis, is impacting trade and input costs. It is true that the fiscal picture is getting to be incrementally better but the on going monetary policy has apparently lost traction.The conservatism of RBI to key rates was no different when food inflation was at 16 % to the current 5% plus .The government on its part, must put its house in order . Cosmetic and marginal reduction in fuel prices is fringe decoration Though the government is desirous of an upward GDP targeting, it is yet to marry divergent requirements, both Monetary and Fiscal , to spell out a road map tying policy to specific goals.Perhaps its attentions are more  on bolstering the political environment and less on  the economic one. 
Operating on a different frequency , the RBI too seems obsessed with external economic ambience and rupee  / dollar value .Our IIP has remained below  potential for  long .Banks have the money, but lower rates would help lubricate the gears of transmission of this idle liquidity to assist growth.There is strong case  for easing the rates for the larger goal of boosting our under utilised manufacturing sector .Clearly a " Forward guidance " on monetary policy by the RBI is  overdue

PSU Banks

The Centre’s decision to alter the selection process of CMDs and EDs of public sector banks ,though welcome, may not address the core of the problem.Banks' primary business is in lending. And that needs informed discretion and application of independent judgment . This would call  for integrity ,both in its system and its managers. Over time, the government as owner of PSU banks, has managed to dilute both.It is not enough that these banks are given some degree of freedom in the selection of its CMD /ED. After all ,the top man can not be expected to single handedly counter the shortfalls in a strait jacketed system that  makes up  the entire public sector banking. or for that matter every PSU. One very significant area that has remained unaddressed ,is the employed manpower. This was needing to be optimised for a long while now,but attempts to do so were always cosmetic.A compact manning, besides sharply pulling up productivity would  enhance accountability, of paramount importance in financial dealings.One argument for excess manning is that PSU banks need greater penetration and reach, as part of the government's inclusive policies. But we now see that private banks too are rapidly opening  up  branches in rural locations.They carry with them advantages of both  a leaner staff and tested systems , inter alia , a nodal mode of sanctioning loans armed with pertinent endemic data and  client -base information.The branch manager is left to  largely deal with day to day operations and client servicing.  Basic changes in systems of bank operations with assisted oversight ,must be planned and implemented.There is little reason why PSU banks then can not match productivity and profits of those in  private sector.Parity in PSU bank salaries will then kick in ,as a matter of earned right . As it stands today,a pedigreed CMD  even if painstakingly selected , is no remedy by itself