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Showing posts from July, 2013

India's Poverty Industry: B G Verghese

POVERTY IS SANDWICHED BETWEEN LINES Online comment: M G :    I am sadly aware that veteran journalist B G Verghese has not raised the question “Why we carp at rather than celebrate falling numbers of poor in the country?” because he is ignorant of the umpteen possible answers to the question, many of which he has himself stumbled upon while writing about several human right issues he has covered in his columns during the last several decades. He, like Amartya Sen or A P J Abdul Kalam who are still concerned about hunger and deprivation, wants to wake up those who can do something about abject poverty, but are pretending ignorance about existence of poverty itself. M G WARRIER The Article India 's poverty industry B G VERGHESE   |   Jul 31, 2013, 12.00 AM IST, TIMES OF INDIA India remains a poor country.   No doubt   about that. Its human deve-lopment indices are a shame. We know that. How do we measure poverty? Opinions vary, but there is agreement that t

Poverty and the disputed line

Planning Commission's views: http://economictimes.indiatimes.com/usrmailcomment_v1.cms?msid=21460171&mailon_commented=1&usercommentid=17851439#toreply17851439 Online comments posted on July 30, 2013: It is agonizing to watch people of Ahluvalia’s stature trying to justify status quo by tinkering statistics. Estimated proportion of the population below the international poverty line of PPP $2/day, 2010(%) according to a reliable source is given below: India               68.7 Bangladesh    76.5 Nepal              57.3 Pakistan          60.2 Sri Lanka        29.1 China              29.8 Indonesia        46.1 Comparison with NDA’s period and the recent past may help UPA get some more votes. But unless there is a conscious effort to improve literacy, healthcare and other minimum needs of deprived people who still form the majority, India’s position in the international community will remain down below, despite higher growth rate which makes the rich an

An insider’s view of reforms - The Hindu

An insider’s view of reforms - The Hindu

From where did poverty go? | Business Standard

From where did poverty go? | Business Standard

Letters: The poverty question | Business Standard

Letters: The poverty question | Business Standard When we find it tough to handle hunger and poverty, we start a debate on what exactly is poverty and where 'cheap' or 'free' food or 'aid' is available. Instead of diverting issues, it is high time India brought back her focus to improving literacy and primary healthcare simultaneously being aggressive on ensuring further progress in Human Development Indicators across geography. Averages are misleading. We must change our pathetic position even among our own neighbors as revealed from the following position: Estimated proportion of the population below the international poverty line of PPP $2/day, 2010(%): India               68.7 Bangladesh    76.5 Nepal              57.3 Pakistan          60.2 Sri Lanka        29.1 China              29.8 Indonesia        46.1 Thailand           4.6 M G Warrier

AMARTA SEN : The uncommon reader, Mint Lounge, July 27, 2013

Amartya Sen: The uncommon reader The Nobel laureate on his favorite writers, major friendships and influences Somak Ghoshal   First Published:   Sat, Jul 27 2013. 12 08 AM IST Sen lists Shaw and Tolstoy as two of his favourite authors. Photo: Ramesh Pathania/Mint Rabindranath Tagore   gave him his name. His maternal grandfather,   Kshitimohan Sen , was a pioneering scholar of Sanskrit. And he spent his formative years in Tagore’s Santiniketan in West Bengal , in an ambience soaked with literary and cultural resonances. In this interview, Nobel laureate   Amartya Sen   speaks about the books he grew up with, how he came to economics, and his abiding love for the plays of   George Bernard Shaw , among other things. Edited excerpts: Tell us about your early life in Santiniketan. One side of it was quite Sanskritic, immersed in the teachings of Tagore, but it was also very cosmopolitan. My mother, Amita Sen, who grew up in Santiniketan, learned judo, which would have bee

The ball is in RBI’s court | Business Line

The ball is in RBI’s court | Business Line M G WARRIER The observations (a) In the ensuing few months, political economy constraints would prevent the Government from taking strong rectification measures, (b) Hence, the Government should give the RBI a free hand to crush inflation with unequivocal monetary tightening, and (c) The Government must recognize that when there are political economy constraints, it is only monetary policy which can hold up the rear, could turn out to be prophetic in 2013-14. GOI has an option to allow the central bank follow the path of prudence and caution it has been following or to follow a pre-election-come-what-may approach. Weakening the RBI in any sense at this juncture will have disastrous consequences.

UTI board meeting today, may discuss appointment of chief | Business Standard

UTI board meeting today, may discuss appointment of chief | Business Standard It is intriguing that even after 30 months the post of Chairman and Managing Director in UTI fell vacant and after splitting the post reportedly at the instance of an external minority shareholder, the institution remains topless. The absence of succession plans in place affects the smooth functioning of any organisation. May be, in the case of PSUs, casual appointments at the top would make management of organisations easier for political leadership. The managements of PSUs can be made to dance according to the whims of political leadership and when something goes wrong, the blame can easily be thrown at the ‘inefficiency’ of the public sector, creating further ground for privatisation. The political leadership which is able to ensure continuity with some semblance of ‘democratic process’ at most of the key positions right from President of India down to Gram Panchayat Member, does not take the same care t

Obituary - Stanislaus Emmanuel Aranha (78), Andheri, Mumbai

Obituary - Stanislaus Emmanuel Aranha (78), Andheri, Mumb May his soul rest in peace M G Warrier

Beyond the debate, govt. accepts 65% Indians are poor - The Hindu

Beyond the debate, govt. accepts 65% Indians are poor - The Hindu NSS data for 1983 and 2004-5 showed that during the period the number of poor people as percentage to total population declined from 45 per cent to 28 per cent based on the poverty line applicable at that time. One economist estimated that, if the poverty line were to be doubled(though still to quite low a cut-off point), the corresponding figures would be 86 per cent in 1983 and 80 per cent in 2004-5. This goes well with the following comparative position of poverty estimates: Estimated proportion of the population below the international poverty line of PPP $2/day, 2010(%): India               68.7 Bangladesh    76.5 Nepal              57.3 Pakistan          60.2 Sri Lanka        29.1 China              29.8 Indonesia        46.1 Thailand           4.6  (Source: As quoted in the book "An Uncertain Glory") M G WARRIER

‘Gujarat has not been a leading State’ | Business Line

‘Gujarat has not been a leading State’ | Business Line AN UNCERTAIN GLORY By Sen and Dreze is a book I picked up the week before, using gift cash vouchers I received for a contribution to Without Reserve(RBI's House Journal) The book is a treasure-house of startling views and observations on India Growth Story and hopefully, will be debated in the coming days more seriously by planners and media. A random pick: NSS data for 1983 and 2004-5 showed that during the period the number of poor people as percentage to total population declined from 45 per cent to 28 per cent based on the poverty line applicable at that time. One economist estimated that, if the poverty line were to be doubled(though still to quite low a cut-off point), the corresponding figures would be 86 per cent in 1983 and 80 per cent in 2004-5. This goes well with the following comparative position of poverty estimates: Estimated proportion of the population below the international poverty line of PPP $2/day

Tackling crisis of confidence in economy | Business Line

Tackling crisis of confidence in economy | Business Line Online comments posted on July 22, 2013 M G WARRIER This is with reference to K Mundanad"s comment. How another authority can perform better, if RBI was not able to do justice to the responsibility entrusted? It is not merger of regulatory bodies as recommended by FSLRC or re-inventing central banking now suggested that will help save the situation. There are a couple of suggestions in this article which I am not repeating which can do wonders. The need of the hour is political will to find India-specific solutions for country-specific problems. Inflation figures of developed countries and India are not comparable.

“Women are socially conditioned for not taking interest in family finances. This outlook has to change” - Moneylife

“Women are socially conditioned for not taking interest in family finances. This outlook has to change” - Moneylife A must read for all

Banks seek priority sector tag for loans to affordable home builders | Business Line

Banks seek priority sector tag for loans to affordable home builders | Business Line Online comments posted on July 21, 2013: Last month it was reported that Textiles Ministry (GOI) was proposing ‘priority sector tag’ for textiles industry anticipating a drastic reduction in cost of credit on change in classification. The report said, ‘Once the demand is met, the industry will be able to avail itself of bank loans at seven per cent compared to 12-14 per cent it pays currently’. In the present scenario, it is doubtful that priority status by itself will fetch such benefit. That apart, the purpose of directed lending under priority sector goes beyond provision of ‘cheap’ funds and has more to do with allocation of bank credit to sectors which banks avoid from a commercial perspective due to several reasons including risk perception or increased transaction costs. If textile industry or housing sector faces viability threat on account of rising costs, the problem should be addressed

Behind China’s Hindu temples, a forgotten history - The Hindu

Behind China’s Hindu temples, a forgotten history - The Hindu

Time to cleanse banking in India, The New Indian Express, July 17, 2013

Time to cleanse banking in India By   The New Indian Express 17th July 2013 07:11 AM In what is probably the single biggest penal action in the history of Indian banking, the Reserve Bank of India (RBI) has imposed stiff penalties totalling to ` 49.5 crore on 22 public and private sector banks for violating anti-money laundering and know-your customer regulations. This follows slapping of fines totalling to ` 10.5 crore against three “new generation” private banks on the same grounds following an expose by an online portal. As similar inquiries against other banks are reportedly at different stages, the list is likely to grow. The fact that the RBI found such a large number of banks violating its regulations shows that the breach is widespread and cannot be explained simply by the banker’s overzealousness to book business at any cost, especially in case of public sector banks whose culture is against undue risk taking. Though the RBI claims that its inquiries did not revea

In rural India, gender equality in wages is still a distant dream | Business Line

In rural India, gender equality in wages is still a distant dream | Business Line Online comments posted on July 17, 2013 (edited version appears on web) As there is no adequate policy support to make things better, these disparities remains fodder for research and analysis by an ‘elite’ class and occasional pre-election lament by a political community who live in a world insulated from poverty and deprivation. There has been some effort at the national level to have a realistic prescribed (enforceable) minimum wage linked to cost of living for ensuring uniform norms for payments for work done, initiated in the context of the National Rural Employment Guarantee Act (NREGA). But this addresses just one aspect of the anomalies in hiring labour. Other factors which include built-in social disparities like uneven development, varying literacy and poverty levels and several geographical and political factors. According to one estimate(quoted in An Uncertain Glory by Jean Dreze& Am

Letters: Financial inclusion | Business Standard

Letters: Financial inclusion | Business Standard Read the unedited version, copied below: Business Standard, July 17, 2013 Letters Financial inclusion This refers to the report ‘No target for number of new bank licenses’ (July 16). It is comforting to find that ‘supporting financial inclusion’ which was included as one of the objectives for allowing new banks when the discussion paper on the subject was released almost three years back, remains in the back of RBI’s mind. The observation ‘Financial inclusion has to be a precondition for such banks…’ coming from RBI Executive Director R Gandhi, who also said in the same context that ‘Post independence, we had a resolution to give attention to poverty alleviation. Our economic planning had poverty alleviation as a key plank…Still, these forty-odd years (sic), efforts have not made serious dent. This indicates the enormous challenges that lie ahead for us in achieving financial inclusion,’ gives credibility to the central bank’s inte

No target in mind on number of bank licences: RBI | Business Line

No target in mind on number of bank licences: RBI | Business Line It is comforting to find that ‘supporting financial inclusion’ which was included as one of the objectives for allowing new banks when the discussion paper on the subject was released almost three years back, remains in the back of RBI’s mind. The observation ‘Financial inclusion has to be a precondition for such banks…’ coming from RBI Executive Director R Gandhi, who also said in the same context that ‘Post independence, we had a resolution to give attention to poverty alleviation. Our economic planning had poverty alleviation as a key plank…Still, these forty-odd years (sic), efforts have not made serious dent. This indicates the enormous challenges that lie ahead for us in achieving financial inclusion,’ gives credibility to the central bank’s intentions. A recent CRISIL study conducted on the basis of three parameters -- branch, deposit and credit penetration -- across the 632 districts in India showed the bottom

Next RBI Governor may be a person who currently holds...

WALL STREET JOURNAL-INDIA Some Surprise Contenders for RBI Governor ·                                  Comments (1) By Prasanta Sahu The next governor of the Reserve Bank of India will likely be the man who currently holds the job. There’s a growing chance that Duvvuri Subbarao will stay on in his position for a while after his tenure expires on Sept. 4. Mr. Subbarao may get an extension of around a year, to ensure continuity and stability in monetary policy at a time when the economy is going through a rough patch and federal elections are around the corner, according to four senior government officials. “Discussions are going on” to give Mr. Subbarao an extension, one senior official with knowledge on the matter told India Real Time. If that happens, it would upset a widespread perception among analysts that the top job will go to Raghuram G. Rajan, a former chief economist for the International Monetary Fund who took over as India ’s Chief Economic Advisor in