My Page March 2012 Published articles/letters/comments etc
M G Warrier’s
My Page
A monthly bulletin from M G Warrier incorporating select published letters/comments/articles (and some stray thoughts based on what he read/saw and wrote during the month). Mailed on the last Sunday of every month. Send your responses and views to mgwarrier@rediffmail.com.
Vol 2, No 3, March 2012
M G Warrier, MLR-116-B, Mangalam Lane, Sastamangalam, Thiruvananthapuram-695010(9349319479)
Dear Reader
Last 8 months I have enjoyed sharing with you my concerns, views and opinion on life around us through these pages. I have received encouraging responses from many of you. If you would like to make this brief or revise the format, do mail back.
Regards
M G Warrier
My Page Editorial
Behind the Beautiful Forevers
Amartya Sen, winner of the Nobel Prize for Economics had this to say about the book ‘Behind the Beautiful Forevers’ by Katherine Boo:
‘A triumph…A beautiful account, told through real life stories, of the sorrows and joys, anxieties and stamina, in the lives of the precarious and powerless in urban India whom a booming country has failed to absorb and integrate. A brilliant boo that simultaneously informs, agitates, angers, inspires and instigates.’
The book is a timely reminder to the busy Mumbaikar and to Indians in general that if we still ignore the warning signals, heavens which we dream about are really going to fall on our heads and there will be no ‘Thrishankuswargam’ available for those who are already up in ‘heavens’ and are enjoying the comforts there, to hang on. The author has captured the essence of deprivation inflicted on communities being displaced in the name of economic development and the lopsided priorities in the agenda of an elite class which is in a hurry to improve the lifestyle of not only their near and dear but several generations to come in their narrow families and accumulate wealth which they hope will help to sustain the lifestyle they are used to. The teenage scrap dealer Abdul’s(a real life character in the book around whom the story unfolds) father Karam Husain sums up the whole frustration, hope and practical outlook of millions who live their lives at below-subsistence levels, in the absence of other options, in the following observation:
‘Everybody in Annawadi talks like this- oh, I will make my child a doctor, a lawyer, and he will make us rich. It’s vanity, nothing more. Your little boat goes west and you congratulate yourself, ‘What a navigator I am!’ And then the wind blows you east.’
It is stated that the land where Annawadi is squeezed into, belongs to Airport Authority of India. Since when? Answer would end up in the ‘chicken or egg’ dilemma. When we displace habitats by acquisition for industrial, commercial or economic development, is it not our responsibility to ensure that those who survived in the vicinity are supported to find shelter and sustainable livelihood? From the well-researched narrative in the book, one gets a feeling that even a reduction of the height or thickness of the walls erected to protect more privileged from the less privileged would have saved enough to ensure a better and safe life for the occupants of Annawadi. This perception will hold good in thousands of ‘Annawadis’ in India.
Government should consider making it obligatory for organisations/individuals incurring heavy expenditure on projects involving displacement of people or reduction in/negation of employment opportunities for local population, to ensure appropriate rehabilitation of affected people. Austerity and ethics, like moral values may not be amenable to legislative restrictions in a country like ours. But creating social awareness may go a long way in achieving the same objectives. Books like this which dare to openly talk about the findings of extensive research in deprivation which is a byproduct of development these days gains significance in this context.
M G Warrier, Thiruvananthapuram
February 26, 2012
Letters
Letters: Defending wrongs
Business Standard / New Delhi Feb 08, 2012, 00:24 IST
This refers to the report “Isro shares part of report indicting Nair” (February 6). Over the past one year, we have seen several policy lapses and huge losses caused to the exchequer because of incorrect interpretations of policy and so on. In many cases, political spokespersons have defended wrongs by pointing fingers at those who talked about corruption or unethical practices. In the process, the purpose of audits, probes and reviews is being lost. Beyond punishing the guilty, learning from experience to avoid repeating mistakes and introducing necessary policy reforms should be the immediate concern when lapses come to light. The Isro debate brings to light the tendency of even organisations of repute to fall in line with the country’s political leadership that tries to defend wrongs by arguing and defending mistakes and witch-hunting rather than thinking about corrective measures.
M G Warrier Thiruvananthapuram
Business Standard / New Delhi Feb 13, 2012, 00:48 IST
Letters
This refers to the report “Pranab says losing sleep over rising subsidy bill” (February 9). It has taken more than seven years for the United Progressive Alliance’s common minimum programme to find expression in the form of an intention to introduce the Food Security Bill. The need to ensure the minimum nutritional needs of the under-privileged is overdue and, in this context, the Food Security Bill is welcome. Only a small section of the urban population can afford the prices of imported processed-food and bottled drinking-water. The well-being of the remaining one billion people is dependent on the food and water available locally.
From a short-term point of view, as there is some time left for the presentation of the 2012-13 Budget, the finance minister should keep in view the following factors while considering “subsidy” as an instrument to support food security:
• Discourage states and political leadership, by way of policy disincentives, from competing for the supply of large amounts of foodgrains at lower prices (it has reached a ridiculous level of one rupee a kilogram of rice in some states).
• Put systems in place for the supply of food packets instead of foodgrains at subsidised prices, at least to workers and employees dependent on outside food. This will open opportunities for processing and supply chains that will create employment. Initially, caterers or hotels coming forward to participate in these efforts could be supported with soft loans and subsidies for supplying quality food packets at pre-decided costs.
• By policy incentives, encourage the production of foodgrains, vegetables, milk, eggs and meat. Subsidy
or incentives in these areas to make production units viable will reduce future burden of food subsidy.
M G Warrier Thiruvananthapuram
Online comments
In response to Mythili’s blog in ET on February 16, 2012
M G WARRIER says:
February 16,2012 at 09:20 PM IST
In recent years, there has been a tendency on the part of people and central and state governments to depend more and more on courts to solve naughty issues. Courts cannot be the substitutes for other wings of governance. The over-dependence on courts has resulted in piling up of millions of cases in courts across the country. Only the elite politicians or rich corporates are able to get timely hearing by the courts. Justice delayed, they say, is justice denied. Government and courts should endeavor to take the country out of this predicament. For tackling the limited issue of heavy backlog and delay in attending important matters before the court, the immediate measures that could be considered could include:
• Segregating cases which need to be decided within a year and taking them on a priority basis by the courts now in position.
• Leaving the remaining cases to new Special Courts to be put in place at all levels depending on the number of pending cases.
• Ensuring vacancies of judges are filled in time
• Making it compulsory for government and public sector organizations to expedite procedures where they are on either side of matters before courts. This is necessary as there is laxity on their side as cost and delay seldom affects the individuals who handle cases in government and public sector. This position is slowly creeping into big corporates also.
• Making necessary legislative changes to reduce procedural delays
• Simultaneous efforts to encourage concerned parties to settle issues out of court. This method would bear fruit where party on one side of the dispute is government or quasi-government organizations.
Economic Times online February 7, 2012
M G WARRIER says:
February 03,2012 at 02:02 PM IST
The questions raised are all very relevant. But in a situation where government refuses to open eyes and see what is happening and spokepersons of government, mostly advocates, defend the wrongs in the same way cases are argued in courts, apex court's options get reduced. Though apex court rulings are equal to law, there is a temptation for many to entrust the whole job of governance to courts. We are victims of this approach. Apex court, with all respect due to the judiciary, cannot be expected to resolve all problems arising from an apathetic and inefficient political leadership. At best SC will guide those in power(Executive) to rectify mistakes in situations like this. It may not be the only option before the court, but, cancellation of licences gives a signal that there is someone watching, if any authority assumes that it can perpetuate wrong decisions, just by being legally correct. What is intriguing is the tendency to defend wrongs, instead of trying to accept the message in the verdict and changing course.
Economic Times Online February 7, 2012
M G WARRIER says:
February 07,2012 at 10:50 AM EET
The spectrum scam is just one ‘outstanding’ deal in which all stake-holders in corrupt practices played their roles in broad daylight. Their operations are multi-dimensional in nature as the stakeholders comprise politicians, ministers and government officials and large corporates. A dispassionate study by academicians may bring out socio-economic issues that may have to be addressed as part of the fight against corruption. The study should aim at unearthing the connections or nexus between and among stakeholders at various levels and come out with suggestions/recommendations about the safeguards that can be built into the system to minimize recurrence of similar instances. The safeguards could include, stricter penalties for economic crimes, denial of party tickets to ‘tainted’ politicians for fighting election, periodic publication of names of individuals/organizations involved in economic offences involving, say, Rs 100 crore or more and voluntary/automatc vacation of public offices by individuals occupying high public offices and facing allegations which courts or government agencies like CBI admit for investigation.
If we miss this opportunity to cleanse public life, it may take ages to redeem the country’s reputation.
Online commentsX2 on Budget 2012-13 @Economic Times, 100212
M G Warrier says:
February 09,2012 at 09:14 PM IST
Finance Minister who loses sleep when budget is on the drawing board should initiate some measures to make the job easier at least next year. Such measures could include:
• Government departments, corporates and other organizations and individuals who spend own resources for unproductive purposes should be denied concessions, subsidized funding and below market rate finance from banks.
• Creating awareness about the need for organizations in both public and private sector to be self-supporting as regards social security and healthcare requirements of the employees they hire irrespective of whether this is done on the rolls or by outsourcing (contract basis).
• Making our remittance laws more transparent making reporting of transactions involving transfer of high value funds through any channel mandatory
• Keeping a track of holding and further accretion of assets like gold, real estate and stocks with High Net-worth individuals and
• Disqualifying individuals who have evaded tax beyond certain levels from holding public offices.
• The temptation to go for external borrowings by government organizations and industrial houses which can mobilize resources internally should be trimmed by appropriate incentives/disincentives.
Online comment in response to Mythili’s Blog @ Economic Times, 100212
M G WARRIER says:
February 09,2012 at 04:08 PM IST
The Common Minimum Programme (CMP) of the United Progressive Alliance (UPA) released in May 2004 had these promises on food and nutrition security:
“The UPA will work out in the next three months, a comprehensive medium-term strategy for food and nutrition security. The objective will be to move towards universal food security over time, if found feasible.
The UPA Government will strengthen the Public Distribution System (PDS), particularly in the poorest and backward blocks of the country, and also involve women’s and ex-servicemen’s cooperatives in its management. Special schemes to reach foodgrains to the most destitute and infirm will be launched. Grain banks in chronically food-scarce areas will be established. Antyodaya cards for all households at risk of hunger will be introduced.
The UPA Government will bring about major improvements in the functioning of the Food Corporation of India (FCI) to control inefficiencies that increase the food subsidy burden.
Nutrition programmes, particularly for the girl child, will be expanded on a significant scale.”
It has taken more than seven years for the above promise to find expression in the form of an intention to introduce a Food Security Bill! The burden of subsidy is now disturbing FM’s sleep, partly the blame should be shared by his colleague Sharad Pawar for the low priority he has been giving to food security-related issues. For immediate cure of insomnia, FM could try reading apex court’s observations on food policy available in small print before going to bed and use voluminous reports on the subject which he may not like to read as pillows. This will, for sure, induce sleep and refresh him for the tasks ahead this budget season.
Online comments in response to Economic Times editorial
M G WARRIER (Thiruvananthapuram)
12 Feb, 2012 10:14 AM
Subsidy, in effect, is either a portion of the real price deferred either because of a controlled market or because of the absence of a real market or part of a price paid in advance to make the product or service sell in an adverse market. You will not find this definition by google search as this has been typed as it came to my mind. If you accept this definition, no one need lose sleep over the quantum of subsidy provided it is worked out rationally at the point of time subsidy is paid. Reason for FM's worry is he is not able to reduce 'subsidy' to the rich and the powerful and those offer him long term finance claimed to be 'on soft terms'. He will be able to find huge funds outside the conventional sources, if the government is able to reconcile to the fact that sooner than later, corruption, black money and unaccounted money will have to be handled in a different way than just dodging the issue further.
Economic Times In response to Mythili’s blog on February 16, 2012
In recent years, there has been a tendency on the part of people and central and state governments to depend more and more on courts to solve naughty issues. Courts cannot be the substitutes for other wings of governance. The over-dependence on courts has resulted in piling up of millions of cases in courts across the country. Only the elite politicians or rich corporates are able to get timely hearing by the courts. Justice delayed, they say, is justice denied. Government and courts should endeavor to take the country out of this predicament. For tackling the limited issue of heavy backlog and delay in attending important matters before the court, the immediate measures that could be considered could include:
• Segregating cases which need to be decided within a year and taking them on a priority basis by the courts now in position.
• Leaving the remaining cases to new Special Courts to be put in place at all levels depending on the number of pending cases.
• Ensuring vacancies of judges are filled in time
• Making it compulsory for government and public sector organizations to expedite procedures where they are on either side of matters before courts. This is necessary as there is laxity on their side as cost and delay seldom affects the individuals who handle cases in government and public sector. This position is slowly creeping into big corporates also.
• Making necessary legislative changes to reduce procedural delays
• Simultaneous efforts to encourage concerned parties to settle issues out of court. This method would bear fruit where party on one side of the dispute is government or quasi-government organizations.
February 17, 2012 Comment on ET Editorial Air India is not India
In the context of government support to Air India at the crucial hour, there has been loud voice of dissent from quarters known for substantial interest in negative growth of public sector enterprises. Post-independence, generally, the Indian private sector has been driven by profit motive and concentrated in areas which would give quick return on capital (often borrowed or raised from the public at subsidized costs). The sector, because of the proximity of its leaders to government, could also manage huge concessions and benefits which even some of the public sector companies couldn’t dream of. In the process, the managers of governance in India could even force on us a conclusion that corruption is only in government, inefficiency is the monopoly of public sector and once you entrust things to private sector, everything will be in safe hands. Experience in the financial sector, IT, mining and oil refinery has proved that when it comes to penetration to rural areas (where India lives), managing costs by cross-subsidizing to maintain prices and taking the responsibility of local development or protection of environment, the performance of private sector has not been that encouraging. Private sector has naturally kept there eyes on the creamy layer of business and enterprises. When it comes to the issue of ensuring social security for the manpower that supports the industries or services, the managers are again dependent on the government or plainly the taxpayer. These aspects get ignored when they compare balance sheets of private sector and government/public sector. At this stage, to put the records straight, government should consider recovering costs at market-related costs from the industries and services and for this purpose, a comprehensive review of pricing nation’s resources and taxation (every budget forgoes huge amounts of taxes otherwise collectable from industries and services) may have to be commissioned.
Comments in response to Economic Times editorial
M G WARRIER (Thiruvananthapuram)
17 Feb, 2012 07:53 PM
In the context of government support to Air India at the crucial hour, there has been loud voice of dissent from quarters known for substantial interest in negative growth of public sector enterprises. Post-independence, generally, the Indian private sector has been driven by profit motive and concentrated in areas which would give quick return on capital (often borrowed or raised from the public at subsidized costs). The sector, because of the proximity of its leaders to government, could also manage huge concessions and benefits which even some of the public sector companies couldn’t dream of. In the process, the managers of governance in India could even force on us a conclusion that corruption is only in government, inefficiency is the monopoly of public sector and once you entrust things to private sector, everything will be in safe hands. Experience in the financial sector, IT, mining and oil refinery has proved that when it comes to penetration to rural areas (where India lives), managing costs by cross-subsidizing to maintain prices and taking the responsibility of local development or protection of environment, the performance of private sector has not been impressive. Private sector has naturally kept there eyes on the creamy layer of business and enterprises. When it comes to the issue of ensuring social security for the manpower that supports the industries or services, the managers are again dependent on the government or plainly the taxpayer.
Online comments responding to Economic Times editorial recorded on February 25, 2012
M G WARRIER (Thiruvananthapuram)
Gold should be restored its status as store of value by making it tradable, secure and available in ‘paper’ form against actual stocks of pure and standard gold. Move towards this objective is necessary from the forex angle and from the common man’s perception of the metal as a liquid asset and pride possession. RBI and Centre, in the early 1990’s actively considered setting up a Gold Bank with a mandate to do real gold-related banking, also taking care of the forex dimensions of the idea. However, the project was a non-starter presumably for profit-related reasons and one need not attribute other motives like being dissuaded by other players in the field who had stakes in the business likely to be taken over by such an institution in the public sector. There is nothing inappropriate in reopening the debate remembering the fact that, after all, it was solid gold that saved the day during the 1991 forex crisis. On the part of GOI/RBI, it was a late decision in the last quarter of 2009 to increase the gold component in the country’s forex reserves by about 200 tonnes (valued at over Rs 30,000 crore) by a purchase from the International Monetary Fund (IMF). If this transaction had been put through a year earlier, the cost for India would have been much less. Of course, IMF would have a better feel of market and the timing to sell must have been their choice.
My Page
A monthly bulletin from M G Warrier incorporating select published letters/comments/articles (and some stray thoughts based on what he read/saw and wrote during the month). Mailed on the last Sunday of every month. Send your responses and views to mgwarrier@rediffmail.com.
Vol 2, No 3, March 2012
M G Warrier, MLR-116-B, Mangalam Lane, Sastamangalam, Thiruvananthapuram-695010(9349319479)
Dear Reader
Last 8 months I have enjoyed sharing with you my concerns, views and opinion on life around us through these pages. I have received encouraging responses from many of you. If you would like to make this brief or revise the format, do mail back.
Regards
M G Warrier
My Page Editorial
Behind the Beautiful Forevers
Amartya Sen, winner of the Nobel Prize for Economics had this to say about the book ‘Behind the Beautiful Forevers’ by Katherine Boo:
‘A triumph…A beautiful account, told through real life stories, of the sorrows and joys, anxieties and stamina, in the lives of the precarious and powerless in urban India whom a booming country has failed to absorb and integrate. A brilliant boo that simultaneously informs, agitates, angers, inspires and instigates.’
The book is a timely reminder to the busy Mumbaikar and to Indians in general that if we still ignore the warning signals, heavens which we dream about are really going to fall on our heads and there will be no ‘Thrishankuswargam’ available for those who are already up in ‘heavens’ and are enjoying the comforts there, to hang on. The author has captured the essence of deprivation inflicted on communities being displaced in the name of economic development and the lopsided priorities in the agenda of an elite class which is in a hurry to improve the lifestyle of not only their near and dear but several generations to come in their narrow families and accumulate wealth which they hope will help to sustain the lifestyle they are used to. The teenage scrap dealer Abdul’s(a real life character in the book around whom the story unfolds) father Karam Husain sums up the whole frustration, hope and practical outlook of millions who live their lives at below-subsistence levels, in the absence of other options, in the following observation:
‘Everybody in Annawadi talks like this- oh, I will make my child a doctor, a lawyer, and he will make us rich. It’s vanity, nothing more. Your little boat goes west and you congratulate yourself, ‘What a navigator I am!’ And then the wind blows you east.’
It is stated that the land where Annawadi is squeezed into, belongs to Airport Authority of India. Since when? Answer would end up in the ‘chicken or egg’ dilemma. When we displace habitats by acquisition for industrial, commercial or economic development, is it not our responsibility to ensure that those who survived in the vicinity are supported to find shelter and sustainable livelihood? From the well-researched narrative in the book, one gets a feeling that even a reduction of the height or thickness of the walls erected to protect more privileged from the less privileged would have saved enough to ensure a better and safe life for the occupants of Annawadi. This perception will hold good in thousands of ‘Annawadis’ in India.
Government should consider making it obligatory for organisations/individuals incurring heavy expenditure on projects involving displacement of people or reduction in/negation of employment opportunities for local population, to ensure appropriate rehabilitation of affected people. Austerity and ethics, like moral values may not be amenable to legislative restrictions in a country like ours. But creating social awareness may go a long way in achieving the same objectives. Books like this which dare to openly talk about the findings of extensive research in deprivation which is a byproduct of development these days gains significance in this context.
M G Warrier, Thiruvananthapuram
February 26, 2012
Letters
Letters: Defending wrongs
Business Standard / New Delhi Feb 08, 2012, 00:24 IST
This refers to the report “Isro shares part of report indicting Nair” (February 6). Over the past one year, we have seen several policy lapses and huge losses caused to the exchequer because of incorrect interpretations of policy and so on. In many cases, political spokespersons have defended wrongs by pointing fingers at those who talked about corruption or unethical practices. In the process, the purpose of audits, probes and reviews is being lost. Beyond punishing the guilty, learning from experience to avoid repeating mistakes and introducing necessary policy reforms should be the immediate concern when lapses come to light. The Isro debate brings to light the tendency of even organisations of repute to fall in line with the country’s political leadership that tries to defend wrongs by arguing and defending mistakes and witch-hunting rather than thinking about corrective measures.
M G Warrier Thiruvananthapuram
Business Standard / New Delhi Feb 13, 2012, 00:48 IST
Letters
This refers to the report “Pranab says losing sleep over rising subsidy bill” (February 9). It has taken more than seven years for the United Progressive Alliance’s common minimum programme to find expression in the form of an intention to introduce the Food Security Bill. The need to ensure the minimum nutritional needs of the under-privileged is overdue and, in this context, the Food Security Bill is welcome. Only a small section of the urban population can afford the prices of imported processed-food and bottled drinking-water. The well-being of the remaining one billion people is dependent on the food and water available locally.
From a short-term point of view, as there is some time left for the presentation of the 2012-13 Budget, the finance minister should keep in view the following factors while considering “subsidy” as an instrument to support food security:
• Discourage states and political leadership, by way of policy disincentives, from competing for the supply of large amounts of foodgrains at lower prices (it has reached a ridiculous level of one rupee a kilogram of rice in some states).
• Put systems in place for the supply of food packets instead of foodgrains at subsidised prices, at least to workers and employees dependent on outside food. This will open opportunities for processing and supply chains that will create employment. Initially, caterers or hotels coming forward to participate in these efforts could be supported with soft loans and subsidies for supplying quality food packets at pre-decided costs.
• By policy incentives, encourage the production of foodgrains, vegetables, milk, eggs and meat. Subsidy
or incentives in these areas to make production units viable will reduce future burden of food subsidy.
M G Warrier Thiruvananthapuram
Online comments
In response to Mythili’s blog in ET on February 16, 2012
M G WARRIER says:
February 16,2012 at 09:20 PM IST
In recent years, there has been a tendency on the part of people and central and state governments to depend more and more on courts to solve naughty issues. Courts cannot be the substitutes for other wings of governance. The over-dependence on courts has resulted in piling up of millions of cases in courts across the country. Only the elite politicians or rich corporates are able to get timely hearing by the courts. Justice delayed, they say, is justice denied. Government and courts should endeavor to take the country out of this predicament. For tackling the limited issue of heavy backlog and delay in attending important matters before the court, the immediate measures that could be considered could include:
• Segregating cases which need to be decided within a year and taking them on a priority basis by the courts now in position.
• Leaving the remaining cases to new Special Courts to be put in place at all levels depending on the number of pending cases.
• Ensuring vacancies of judges are filled in time
• Making it compulsory for government and public sector organizations to expedite procedures where they are on either side of matters before courts. This is necessary as there is laxity on their side as cost and delay seldom affects the individuals who handle cases in government and public sector. This position is slowly creeping into big corporates also.
• Making necessary legislative changes to reduce procedural delays
• Simultaneous efforts to encourage concerned parties to settle issues out of court. This method would bear fruit where party on one side of the dispute is government or quasi-government organizations.
Economic Times online February 7, 2012
M G WARRIER says:
February 03,2012 at 02:02 PM IST
The questions raised are all very relevant. But in a situation where government refuses to open eyes and see what is happening and spokepersons of government, mostly advocates, defend the wrongs in the same way cases are argued in courts, apex court's options get reduced. Though apex court rulings are equal to law, there is a temptation for many to entrust the whole job of governance to courts. We are victims of this approach. Apex court, with all respect due to the judiciary, cannot be expected to resolve all problems arising from an apathetic and inefficient political leadership. At best SC will guide those in power(Executive) to rectify mistakes in situations like this. It may not be the only option before the court, but, cancellation of licences gives a signal that there is someone watching, if any authority assumes that it can perpetuate wrong decisions, just by being legally correct. What is intriguing is the tendency to defend wrongs, instead of trying to accept the message in the verdict and changing course.
Economic Times Online February 7, 2012
M G WARRIER says:
February 07,2012 at 10:50 AM EET
The spectrum scam is just one ‘outstanding’ deal in which all stake-holders in corrupt practices played their roles in broad daylight. Their operations are multi-dimensional in nature as the stakeholders comprise politicians, ministers and government officials and large corporates. A dispassionate study by academicians may bring out socio-economic issues that may have to be addressed as part of the fight against corruption. The study should aim at unearthing the connections or nexus between and among stakeholders at various levels and come out with suggestions/recommendations about the safeguards that can be built into the system to minimize recurrence of similar instances. The safeguards could include, stricter penalties for economic crimes, denial of party tickets to ‘tainted’ politicians for fighting election, periodic publication of names of individuals/organizations involved in economic offences involving, say, Rs 100 crore or more and voluntary/automatc vacation of public offices by individuals occupying high public offices and facing allegations which courts or government agencies like CBI admit for investigation.
If we miss this opportunity to cleanse public life, it may take ages to redeem the country’s reputation.
Online commentsX2 on Budget 2012-13 @Economic Times, 100212
M G Warrier says:
February 09,2012 at 09:14 PM IST
Finance Minister who loses sleep when budget is on the drawing board should initiate some measures to make the job easier at least next year. Such measures could include:
• Government departments, corporates and other organizations and individuals who spend own resources for unproductive purposes should be denied concessions, subsidized funding and below market rate finance from banks.
• Creating awareness about the need for organizations in both public and private sector to be self-supporting as regards social security and healthcare requirements of the employees they hire irrespective of whether this is done on the rolls or by outsourcing (contract basis).
• Making our remittance laws more transparent making reporting of transactions involving transfer of high value funds through any channel mandatory
• Keeping a track of holding and further accretion of assets like gold, real estate and stocks with High Net-worth individuals and
• Disqualifying individuals who have evaded tax beyond certain levels from holding public offices.
• The temptation to go for external borrowings by government organizations and industrial houses which can mobilize resources internally should be trimmed by appropriate incentives/disincentives.
Online comment in response to Mythili’s Blog @ Economic Times, 100212
M G WARRIER says:
February 09,2012 at 04:08 PM IST
The Common Minimum Programme (CMP) of the United Progressive Alliance (UPA) released in May 2004 had these promises on food and nutrition security:
“The UPA will work out in the next three months, a comprehensive medium-term strategy for food and nutrition security. The objective will be to move towards universal food security over time, if found feasible.
The UPA Government will strengthen the Public Distribution System (PDS), particularly in the poorest and backward blocks of the country, and also involve women’s and ex-servicemen’s cooperatives in its management. Special schemes to reach foodgrains to the most destitute and infirm will be launched. Grain banks in chronically food-scarce areas will be established. Antyodaya cards for all households at risk of hunger will be introduced.
The UPA Government will bring about major improvements in the functioning of the Food Corporation of India (FCI) to control inefficiencies that increase the food subsidy burden.
Nutrition programmes, particularly for the girl child, will be expanded on a significant scale.”
It has taken more than seven years for the above promise to find expression in the form of an intention to introduce a Food Security Bill! The burden of subsidy is now disturbing FM’s sleep, partly the blame should be shared by his colleague Sharad Pawar for the low priority he has been giving to food security-related issues. For immediate cure of insomnia, FM could try reading apex court’s observations on food policy available in small print before going to bed and use voluminous reports on the subject which he may not like to read as pillows. This will, for sure, induce sleep and refresh him for the tasks ahead this budget season.
Online comments in response to Economic Times editorial
M G WARRIER (Thiruvananthapuram)
12 Feb, 2012 10:14 AM
Subsidy, in effect, is either a portion of the real price deferred either because of a controlled market or because of the absence of a real market or part of a price paid in advance to make the product or service sell in an adverse market. You will not find this definition by google search as this has been typed as it came to my mind. If you accept this definition, no one need lose sleep over the quantum of subsidy provided it is worked out rationally at the point of time subsidy is paid. Reason for FM's worry is he is not able to reduce 'subsidy' to the rich and the powerful and those offer him long term finance claimed to be 'on soft terms'. He will be able to find huge funds outside the conventional sources, if the government is able to reconcile to the fact that sooner than later, corruption, black money and unaccounted money will have to be handled in a different way than just dodging the issue further.
Economic Times In response to Mythili’s blog on February 16, 2012
In recent years, there has been a tendency on the part of people and central and state governments to depend more and more on courts to solve naughty issues. Courts cannot be the substitutes for other wings of governance. The over-dependence on courts has resulted in piling up of millions of cases in courts across the country. Only the elite politicians or rich corporates are able to get timely hearing by the courts. Justice delayed, they say, is justice denied. Government and courts should endeavor to take the country out of this predicament. For tackling the limited issue of heavy backlog and delay in attending important matters before the court, the immediate measures that could be considered could include:
• Segregating cases which need to be decided within a year and taking them on a priority basis by the courts now in position.
• Leaving the remaining cases to new Special Courts to be put in place at all levels depending on the number of pending cases.
• Ensuring vacancies of judges are filled in time
• Making it compulsory for government and public sector organizations to expedite procedures where they are on either side of matters before courts. This is necessary as there is laxity on their side as cost and delay seldom affects the individuals who handle cases in government and public sector. This position is slowly creeping into big corporates also.
• Making necessary legislative changes to reduce procedural delays
• Simultaneous efforts to encourage concerned parties to settle issues out of court. This method would bear fruit where party on one side of the dispute is government or quasi-government organizations.
February 17, 2012 Comment on ET Editorial Air India is not India
In the context of government support to Air India at the crucial hour, there has been loud voice of dissent from quarters known for substantial interest in negative growth of public sector enterprises. Post-independence, generally, the Indian private sector has been driven by profit motive and concentrated in areas which would give quick return on capital (often borrowed or raised from the public at subsidized costs). The sector, because of the proximity of its leaders to government, could also manage huge concessions and benefits which even some of the public sector companies couldn’t dream of. In the process, the managers of governance in India could even force on us a conclusion that corruption is only in government, inefficiency is the monopoly of public sector and once you entrust things to private sector, everything will be in safe hands. Experience in the financial sector, IT, mining and oil refinery has proved that when it comes to penetration to rural areas (where India lives), managing costs by cross-subsidizing to maintain prices and taking the responsibility of local development or protection of environment, the performance of private sector has not been that encouraging. Private sector has naturally kept there eyes on the creamy layer of business and enterprises. When it comes to the issue of ensuring social security for the manpower that supports the industries or services, the managers are again dependent on the government or plainly the taxpayer. These aspects get ignored when they compare balance sheets of private sector and government/public sector. At this stage, to put the records straight, government should consider recovering costs at market-related costs from the industries and services and for this purpose, a comprehensive review of pricing nation’s resources and taxation (every budget forgoes huge amounts of taxes otherwise collectable from industries and services) may have to be commissioned.
Comments in response to Economic Times editorial
M G WARRIER (Thiruvananthapuram)
17 Feb, 2012 07:53 PM
In the context of government support to Air India at the crucial hour, there has been loud voice of dissent from quarters known for substantial interest in negative growth of public sector enterprises. Post-independence, generally, the Indian private sector has been driven by profit motive and concentrated in areas which would give quick return on capital (often borrowed or raised from the public at subsidized costs). The sector, because of the proximity of its leaders to government, could also manage huge concessions and benefits which even some of the public sector companies couldn’t dream of. In the process, the managers of governance in India could even force on us a conclusion that corruption is only in government, inefficiency is the monopoly of public sector and once you entrust things to private sector, everything will be in safe hands. Experience in the financial sector, IT, mining and oil refinery has proved that when it comes to penetration to rural areas (where India lives), managing costs by cross-subsidizing to maintain prices and taking the responsibility of local development or protection of environment, the performance of private sector has not been impressive. Private sector has naturally kept there eyes on the creamy layer of business and enterprises. When it comes to the issue of ensuring social security for the manpower that supports the industries or services, the managers are again dependent on the government or plainly the taxpayer.
Online comments responding to Economic Times editorial recorded on February 25, 2012
M G WARRIER (Thiruvananthapuram)
Gold should be restored its status as store of value by making it tradable, secure and available in ‘paper’ form against actual stocks of pure and standard gold. Move towards this objective is necessary from the forex angle and from the common man’s perception of the metal as a liquid asset and pride possession. RBI and Centre, in the early 1990’s actively considered setting up a Gold Bank with a mandate to do real gold-related banking, also taking care of the forex dimensions of the idea. However, the project was a non-starter presumably for profit-related reasons and one need not attribute other motives like being dissuaded by other players in the field who had stakes in the business likely to be taken over by such an institution in the public sector. There is nothing inappropriate in reopening the debate remembering the fact that, after all, it was solid gold that saved the day during the 1991 forex crisis. On the part of GOI/RBI, it was a late decision in the last quarter of 2009 to increase the gold component in the country’s forex reserves by about 200 tonnes (valued at over Rs 30,000 crore) by a purchase from the International Monetary Fund (IMF). If this transaction had been put through a year earlier, the cost for India would have been much less. Of course, IMF would have a better feel of market and the timing to sell must have been their choice.
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