Warrier's blog

Modernising the monetary policy - The Hindu

Jaitley tells auditors to question all questionable decisions… | Business Line

An edited version of the letter copied below has been published in today's (October 30, 2014)ET: October 29, 2014 The Editor Economic Times   Chat Room Right diagnosis This refers to ET editorial “Fix Systemic Ills in State-Owned Banks” (October 29). In the business of banking, success almost entirely depends on the men who man the key positions in banks and the functional autonomy the banks enjoy within the contours of the law of the land. In this context, the issues relating to structural changes and market-related remuneration to staff including top executives with appropriate safeguards for ensuring performance and responsibility for decisions are much more relevant in public sector banks than when banks were nationalised and enjoyed a monopoly of sorts in their area of business. Still, one is not able to agree with the view that privatisation is a panacea for all ills or to go by the idea that Axis Bank is a model to be followed. On the limited issue ...

A constitutional impropriety - The Hindu

Dispensing water from ATMs or water dispensing ATMs? - Moneylife Interesting, isn't it? I wrote this to draw attention to certain things happening in India which have far-reaching consequences. Poor people displaced from their habitat for the enjoyment of their fellow citizens, are being offered 'ATM Water' at a price. M G Warrier

Reforming India faces an uncertain global situation - The Hindu

Read in Forbes Magazine: Money is not wealth, it only helps create wealth Also read my article "Illusion of Money" posted here earlier. M G Warrier

We’ve no time please, we’re children - The Hindu Very relevant thoughts, excellently presented. Wish, every parent reads this. Chances are, grandparents only may find TIME TO READ! M G Warrier, Mumbai

Finance Minister Arun Jaitley favours interest rate cut | Business Standard News Online comments posted on October 26, 2014: True, in the interview given to Times of India Finance Minister did say that “…but other expansion in real estate will take place significantly only if the interest rates come down a little. Currently interest rates are a disincentive. Now that inflation seems to be stabilising somewhat, the time seems to have come to moderate the interest rates." But connecting the above observation to Reserve Bank’s base rate was the reporters’(TOI) contribution who added, “the Reserve bank which has kept rates unchanged, has maintained that despite recent moderation, inflation remains a challenge.” Across sectors, lending rates are high in India. One is tempted to add, compared to lending rates, deposit rates are relatively low, as margins are high( may be, higher than the deposit rates in some countries). Let us remember interest rates remain dereg...

The philosopher who turned down the Nobel 50 years ago - The Hindu By a mere coincidence, I read  Reader's Digest book choice(RD, October 2014) on Washington Grover this week. Copied below is my response to Reader's Digest: M G Warrier October 22, 2014 The Editor Reader’s Digest Letters Modi-fied reading I found ‘The Story of George Washington Carver’(PART TWO) (RD, October 2014) a timely recall of a century old story which is very relevant in 21 st Century India. One can pick up several parallels to the quotes from Carver in the recent speeches of Prime Minister Modi and several other Indian statesmen including former President Kalam, which call for adapting this book as the basis for moulding the India Growth Story tapping the available resources of the nation and redeploying them for the benefit of ‘WE THE PEOPLE’ (Refer the PREAMBLE of Indian Constitution). The following quotes from Carver   need to be repeated: “A plant needs certain thin...

In furtherance of good governance - The Hindu My response: October 25, 2014 Good governance This refers to the lead article “In furtherance of good governance”(October 25). The following observation of   Justice J. Chelameswar and Justice A.K. Sikri of the Supreme Court of India (September 22, 2014) in Vijay Shankar Pandey vs Union of India and Another quoted in the article, read with Prime Minister Narendra Modi’s recent statement that civil servants can insist on written instructions from their political bosses is comforting: “The right to judicial remedies … is a constitutional right of the subjects … Employees of the State cannot become members of a different class to whom such right is not available.” This letter is in the context of online comments on vital issues raised in the article, recorded by a reader who has expressed frustration about the option before the civil servants to ensure that their rights are protected. The apprehension obvious...

Finally, a push for labour reforms | Business Line It is heartening to find that the need for a holistic approach to reforms is slowly getting recognition. So far, the efforts to rationalise labour laws were getting stuck somewhere, perhaps because deliberations on the issue got on to a wrong track, issues involved being misunderstood as Employer Vs Employee, Employee Vs Employer and/Government, Centre Vs State or vice versa. Even the present moves to fructify, a lot of give and take between central and state governments in terms of powers and resource-sharing and a clearer understanding of social and humanitarian issues involved in handling lowest strata of unskilled workers will be necessary. The issues in manufacturing and production sectors are not comparable with service sectors like IT or banking where ‘policy decisions’ can enhance profitability and where, so far, margins are decided by owners because of the captive clientele. As social security systems impr...

Spotlight: Unlead yourself - The Hindu BEFORE READING, I NEVER THOUGHT THIS WAS ABOUT A CHEMICAL! DID YOU? M G Warrier

Letters: Private profiteering | Business Standard Letters Submitted version: October 20, 2014 The Editor                                                                                                        Business Standard Letters Sectoral issues This refers to the article “A chowkidar f or state banks”(IRRATIONAL CHOICE, October 20). I am afraid, even Debashis Basu has been guided to believe that governance is all about government and public sector. I would go by ...

Dignity Dialogue, October 2014 peace of mind Illusion of Money Even though money would be hailed by many as the greatest invention after fire, M G Warrier   has reservations about its alleviative power. Rather, he propounds a radical theory where money rests in peace and human beings resurrect the barter world in new Avatar.   I love ants more than honey bees. I have reasons. Like Japanese people, ants continuously work. Almost a kind of Nishkamakarma about which Krishna talks in Bhagavadgita . They share their food with their fellow-ants, actually they use their excellent communication system to invite their friends and relatives once they locate some food. They do not store food. Whereas, honey bees, like the rich and the powerful countries, accumulate food. They have a class system which almost borders the caste system practiced by zamindars. Just as the greedy rich who are willing to die along with their wealth and arsenal, honey bees die along with the...

Lessons from mutiny on the bounty - The Hindu

Debashis Basu: A chowkidar for state banks | Business Standard Column I am afraid, even Debashis Basu has been guided to believe that governance is all about government and public sector. I would go by the promise of Modi and would wait for some more time whether the chowkidar initiates some steps to protect the nation’s resources and redeploy them for the benefit of ‘WE THE PEOPLE’(Refer PREAMBLE of the Indian Constitution). The Indian public sector as it was envisaged by the policy makers of the Nehruvian era has faced continuous assault from the so called private sector interests which found helping allies in the bureaucracy and certain rich individuals who could make it to powerful positions in political leadership. Policy making and legislation have been manipulated by these allies to serve the interests of their ‘masters’. On the limited issue of the criticism of banks in public sector, the question remains what prevents the private sector catering to the needs of the h...

My search for identity: I got an answer 20102014 Almost eleven years back, a small group of senior citizens(in their sixties and seventies) who were attending a religious function, called me aside and secretly asked which GOTRA I belonged. I was unprepared to answer the question at that point of time. In five seconds, a flash of memory came to my mind. Born in Malabar(Kerala) in a warrier family, I inherited the religion and caste from my maternal side and therefore I was SHUDRA though my father is NAMBUDIRI who was from a traditionally recognized BRAHMIN family of Payyanur. His forefathers used to participate in the MURAJAPAM conducted by the royal family of Travancore. Suddenly, I remembered my father telling me that he belonged to KASHAPA GOTRA and he and his progeny will never be hurt by snakes(this is a different story). I answered the question in two words: ‘KASHYAPA GOTRA’ That saved the day. THIS STORY PROVES ME RIGHT. Please read on: HAPPY DEEPAVAL...

The contours of economic recovery - The Hindu

Costs of ignoring hunger - The Hindu Interesting views Long back, someone(who, I forget, was it Lester Pearson?) had said peace is indivisible. Perhaps meaning, you cannot have peace in select pockets. Hunger, illiteracy, terrorism, several other evils are staring at a minority which thinks that WEALTH  can protect the WEALTHY. if efforts for economic development and accumulation of assets are not accompanied by respect for human welfare, the next generation will blame the present generation of wealthy and happy people for not protecting their interests. M G WARRIER

HAPPY DEEPAVALI   M G Warrier

FSLRC: Selective Actions by Ministry of Finance - Moneylife With reference to the report ‘Don’t Turn Regulators into Paper Tigers: Rajan’ (Economic Times, June 18, 2014) I had responded asunder:. In May 2013, in response to an article in a financial newspaper, I had observed: “ Not much research is needed to conclude that finance ministry and FSLRC, in a hurry to resolve certain minor issues, ignored the evolution of the role of RBI and the care with which RBI has nurtured the financial sector. Fed Reserve and RBI function in two different worlds. To say that time is not right for dismantling or truncating the RBI which is doing creditably well as is being admitted in several international forums, would be telling the obvious. The dissenting notes recorded by 4 out of 7 members who signed the final report are well-argued documents, which inter alia plead the case for maintaining the basic features of RBI and assert the need for allowing the central bank to carry on with ...

Sunanda K Datta-Ray: Auld acquaintances, never forgot | Business Standard Column A befitting tribute This is just to thank Sunanda K Datta-Ray for “Auld acquaintances, never forgot”(WHERE MONEY TALKS, October 18). In less than thousand words, the writer has packed nicely his memories about two of his acquaintances, which will bring back nostalgic memories to the minds of readers who may not have had occasion to know or read the two departed souls. The anecdotes and experiences quoted will prick somewhere and make you think of someone whom you knew closely. Freepress Journal, as it happened earlier in the case of N A Mujumdar, published M V Kamat’s article(a book review) during the week that followed his departure, with a short note about the author’s demise. May be they (Mujumdar and Kamat) were luckier than K K Sharma as they could pursue their profession(or cause the held to their heart) till their end. . M G Warrier, Mumbai  

New team to steer economy - The Hindu This reshuffle shows that the Modi government is serious about having a professional team in place as the back office work for Budget 2015-16 gains momentum. Instead of alleging motives or probing who was close to whom, media and analysts should now concentrate on the credentials of the new team in New Delhi and in RBI in the context of the tasks before them and their capability to deliver. Let us bid bye to the earlier practice of putting in place amenable persons in key positions. M G Warrier 

The Hindu, October 17, 2014 THE LIMITS OF AUTONOMY: T T Ram Mohan Read http://www.thehindu.com/ opinion/lead/the-limits-of- autonomy/article6507666.ece#. VEBvxSdJfOI.gmail Comments: With reference to the observation, “ The government is said to be planning an eight-member MPC dominated by five external members, as proposed by the FSLRC….”, I recall a recent report in the media saying that RBI Governor may get a veto in the proposed MPC. I had responded asunder: “While such gestures to calm dissent are normal in governance, the recent initiatives from the finance ministry, including the hurry with which some of the recommendations of the Financial Sector Legislative Reforms Commission are being pushed through for implementation, gives an impression that new dispensation in Delhi has not fully recovered from the hang over of the previous coalition government’s ‘give and take’ approach in decision making. It would be an unhealthy message to the regulators and all stakeh...

The economic consequences of Nehru - The Hindu An excellent article. Though immediate impact is unlikely, it is heartening to see that issues like the ones raised here get some space in the mainstream media. My perception is that neglect of education in major geographical areas of India has been a continuation of the conscious policy followed by rich zamindaars to ensure that though unskilled workforce at starvation wages remain available on an ongoing basis. Recent decades have seen thoughts like ‘if more numbers go beyond XII, and a lesser percentage get opportunity for higher education’, there is a chance of external criticism that India doesn’t have enough educational institutions! These days, even those who pass out from IITs and IIMs are absorbed by industrial or IT Giants and made to forget their career path by giving them high initial salary and jobs which can be got done by SSCs. M G Warrier

Book Review of 'Not Just an Accountant' - Moneylife “Not Just An Accountant” has opened debates on several issues concerning governance and the games people holding power play. It needs a lot   of courage and ‘will to live for the country’ for individuals like Vinod Rai to speak out on issues raised in the book. The debate should be taken forward for real ‘cleaning up’ to happen. Moneylife has done its bit by publishing this review. M G Warrier

Rajan given Best Central Bank Governor award by Euromoney - The Hindu Congratulations to Dr Raghuram G Rajan. Permit me to quote my own response to an article on Dr Rajan published in The Hindu (The man who turned the economic tide, September 5, 2014) I commented asunder: India was waiting for the kind of leadership Dr Raghuram Rajan and Modi are capable of providing. Both have some common qualities. Both are willing to work for the country's good. Both are good listeners. Both lead from the front. Both are willing to change course, if someone is able to convince that there are better options. In their respective fields, both have the advantage of age. Both are lucky to be at the right place at the right time.”  I have reproduced this in my October 2014 column in The Global ANALYST . M G Warrier

Amending Prize Chits Act - Moneylife Readers, Please read the concluding paragraph of this article(copied below for convenience) again. The observation, “ At a time when the finance minister was away on a long medical break and when the department of banking ought to be concerned about issues such as burgeoning bad loans and the urgent need to appoint chairmen of six nationalised banks, it is, indeed, surprising that amending the Act to legitimise MLMs seems a greater priority.” needs your attention. Let us be vigilant about the games bureaucrats and politicians play. Actions like the one alleged here and even ones with more far reaching implications like appointment(on September 30) of Task Forces for implementation of controversial FSLRC recommendations with a mandate to come back after one year with ready to use mechanisms should not go unnoticed. M G Warrier

Kerala’s fiscal excesses are unforgivable | Business Line Kerala’s Sinking fiscal boat This refers to Pulapre Balakrishnan’s article “Kerala’s fiscalexcesses are unforgivable”(October 15). The indictment of the ‘institution of political leadership’ in Kerala which has evolved over time which respects no masters other than the business interests(these two words are used in a restricted sense and I have no special dislike against entrepreneurs!) which feed them, is well deserved. Permit me to recall my own observations on the subject in an article published immediately after the first ‘Emerging Kerala Festival’. I wrote: “There is a felt need to trim Kerala’s ambitions and tailor the state’s projects and programmes in such a way as to harmonise them with resource availability and the state’s needs at this stage of development. The memory of the failure of a small country Cyprus which suffered from an over-sized banking sector (some 8 times the size the country nee...

The following clipping was mailed to me by G Mohandas via rbichennaifriends group mail. Found interesting. M G Warrier  Pl read   Mr. Gurumurthy's speech in Sunday Express dt 12th oct 2014       (Please click on "View  e papaer .newindianexpress" below)     Love,  G.Mohandas ********************************************************************************   Clipping of The New Indian Express-Chennai               Clipping of The New Indian Express-Chennai Published on 12 Oct 2014

The absurd clamour for labour market reforms | Business Line Online comments* posted on October 14, 2014: This refers to the article “The absurd clamour for labour market reforms”(MACROSCAN, October 14). The article gives a balanced view on the injustice being meted out to the workforce of India in general, in the name of reforms and globalisation. By bringing the following facts in one place, the authors have   helped policy makers to have a re-look at the way in   which the government and employers handle the issues relating to compensation package(wages, health/insurance benefits and social security aspects put together): 1.       Total wages and salaries(emoluments) amounted to only 4.5 per cent of the total input costs in the factory sector 2.       The share of workers(who may constitute more than 80 per cent of the workforce) in the emoluments bill was less than 47 per cent. 3.     ...

Letters: Beyond 'give and take' | Business Standard Letters Submitted version of letter published in Business Standard, October 13, 2014: October10, 2014 Letters Beyond‘give and take’ This refers to thereport “RBI governor might get veto in price stability mechanism”(October 10). While such gestures to calm dissent are normal in governance, the recent initiatives from the finance ministry, including the hurry with which some of the recommendations of the Financial Sector Legislative Reforms Commission are being pushed through for implementation, gives an impression that new dispensation in Delhi has not fully recovered from the hang over of the previous coalition government’s ‘give and take’ approach in decision making. It would be an unhealthy message to the regulators and all stakeholders in the financial system, if such ‘concessions’ to RBI and its present governor appear to be a privilege available in certain situations. There is a chance of les...

Not A Nice Man To Know I would still like to remember Khushwant Singh as the editor of The Illustrated Weekly of India M G Warrier

Read: http://www.financialexpress. com/news/editorial-usstyle- monetary-policy/1296627  Online comments posted on October 10, 2014: There was another report in the media today(October 10) that “RBI governor might get veto in price stability mechanism”. While such gestures to calm dissent are normal in governance, the recent initiatives from the finance ministry, including the hurry with which some of the recommendations of the Financial Sector Legislative Reforms Commission are being pushed through for implementation, gives an impression that new dispensation in Delhi has not fully recovered from the hang over of the previous coalition government’s ‘give and take’ approach in decision making. It would be an unhealthy message to the regulators and all stakeholders in the financial system, if such ‘concessions’ to RBI and its present governor appear to be a privilege available in certain situations. There is a chance of lesser mortals among regulators becoming less amenable...

Maneka Gandhi launches new guaranteed Minimum Pension Scheme - Moneylife Onlinecomments: MG Warrier If the government is serious about ensuring a reasonably secure post-employment/retirement life for workers who earn 'starvation wages', the organisations like PFRDA (implementing National Pension System), LIC and EPFO should put their heads together and implement schemes that will get resources from employers when employees serve and by managing the funds prudently, these organisations should be in a position to pay a decent regular pension for retirees and their survivors. Rs1000 wll be inadequate, even if the Parliament House canteen facilities are thrown open to pensioners.

If you are able to open the link below, please read this article at Lifepositive.com M G Warrier Children of immortality - http://lifepositive.com/children-of-immortality/

Business Manager-HR Magazine, October 2014 Feature Article   Book Review - Banking, Reforms & Corruption* M.G. Warrier The book raises crtitically important issues and reflects on debates concerning role of India’s central bank and banking in India including the much talked about subject of rural banking, the idea of development in post-liberalisation India and the extremely important and little discussed theme of pensions and life aftr retirement. The author M G Warrier is a former general manager of the Reserve Bank of India in Mumbai. During his stint with India’s central bank and later, Warrier regularly wrote on economics and business climate as well as issues relating to development and old age care. The articles and short essays published in this book have been published in a variety of print and web media. *Published by SAMPARK, Kolkatta(Email: samparkworld@hotmail.com) Available at amazon.in