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Avoidable controversy

Avoidable controversy : The Centre’s move to appropriate unclaimed employee provident fund balances to a welfare fund is unfair... Excerpts: " While the workers’ worries on unclaimed balances are valid, their opposition to raising the equity exposure of the Fund from 5 to 10 per cent stands on much weaker ground. Having won approval for a 5 per cent equity exposure last August, the EPFO has deployed just ₹7,468 crore, or less than 1 per cent of its corpus, in stocks as of June 30, earning a 7.4 per cent return. At this level the equity exposure is too small to make a material difference to the Fund’s overall returns. While high stock market valuations make this a less-than-ideal time to raise equity allocations sharply, the EPFO can probably persuade the unions on the merits of a phased increase over the next one year. Overall, the Centre should keep in mind that one too many attempts to tinker with the EPF rules create avoidable confusion among employees using it as their defau

Power of Rama Bhakti

Power of Rama Bhakti : ‘All actions when dedicated to the Lord, all thoughts when placed in the chaitanya, all desires and ego when kept aloof, make one free of mental turmoil. Then if one engages in any action, even if it... Excerpts: " ‘All actions when dedicated to the Lord, all thoughts when placed in the chaitanya, all desires and ego when kept aloof, make one free of mental turmoil. Then if one engages in any action, even if it be a battle, the effort is well accomplished. The attitude that all is God’s will, everything is His possession, that each one of us is His servant, brings about equanimity and enables one to accomplish the task on hand in the best manner.’" Read on... M G Warrier PS: With the previous post this Blog has received over 55555 page views. This month it has crossed the 2222 mark in terms of number of posts. Number of followers: Thirteen! 

Jayanta Roy: Ensuring growth for all Indians

Jayanta Roy: Ensuring growth for all Indians : Pulling the neglected millions out of poverty will require massive investments in human capital... Timely reminder Any number of ‘reminders’ like this should be welcomed. Post-independence, for decades, there has been a conscious neglect of the need to ensure equity or distributive justice, literacy for masses and elimination of poverty from India. There was self interest of ensuring cheap labour for industries and even for house-hold work. Till Narendra Modi as PM exhorted from the ramparts of Red Fort on August 15, 2014, importance of schooling girl children or the reason for high rates of drop-outs beyond primary classes (inadequate toilet facilities in schools) did not get the attention these issues are getting now. Skill development based on the local needs is still a neglected area. Except in states like Kerala where education is oriented towards ‘sending out’ youth to seek jobs, there are no serious efforts to improve litera

Mahasweta Devi: Tearing the curtain of darkness

Mahasweta Devi: Tearing the curtain of darkness : The story goes, not apocryphal, that every time Mahasweta Devi visited Jharkhand, she would demand that Birsa Munda be unshackled. In Ranchi, on Birsa Munda Chowk, there’s a statue of this fiery... Excerpts: " An old Ranchi hand recalls her saying: “ Shaddhin deshe keno shekole bandha (why is he still in chains when India is free)?” as she gathered for a meeting of bonded labourers in the 1980s. Last month, the Jharkhand government decided to free Birsa Munda of his shackles, 116 years after his death, and several years after the writer and activist voiced her demand. She may not be around to see a “free” Munda, but the downtrodden — tribals, dispossessed, marginalised, landless — and those who are fighting against injustice and are still in chains know that she is there in spirit."

Appointment of ‘capitalist’ adviser angers Left in Kerala

Appointment of ‘capitalist’ adviser angers Left in Kerala : Harvard economist Gita Gopinath’s appointment as economic adviser... ‘Capitalist’ adviser! This refers to the report “Appointment of ‘capitalist’ adviser angers Left in Kerala” (The Hindu Business Line, July 30). The smile on Kerala Chief Minister Pinarayi Vijayan’s face is real. He has successfully generated a debate in the media and among his friendly adversaries within LDF and in the opposition on a non-issue. Here are the reasons. CM knows that an advisor is not an administrator of policies. Her role starts and ends with giving her views with supporting empirical evidence or reasons on issues referred to her. The opposition and even his own friend, philosopher and guide VS will get engaged in finding out the background and ‘profile’ of Gita Gopinath, when he can concentrate on other mundane issues of governance. This observation is also in the context of criticism from political parties like Congress that the p

WEEKEND LIGHTER: Tryst with destiny

WEEKEND LIGHTER: Tryst with destiny (July 30/31, 2016, No. 31/2016) Weekend Lighter is posted every Saturday @mgwarrier.blogspot.in Feel free to mail your views on this edition of WL to mgwarrier@gmail.com I Opening Remarks Political vocabulary* This refers to the report “Modi can go to any extent, may get me killed: Kejriwal” (Business Standard, July 28). Expression of ‘fear of death’ also can be pardoned by expanding the meaning of ‘freedom of expression’. But, it could turn out to be a different story altogether, when a responsible CM alleges that his country’s PM may get him killed. While several politicians with criminal background have entered legislatures, no such background has been attributed to Prime Minister Narendra Modi yet. We expected the elegance in communication that civil servants acquire by experience and are shocked to see him mimicking the language used by ground level political ‘leaders’ to get quick applause. In Kerala, where CPI (M)-led LDF is

Kamadenu: Govinda. #watercolour #krishnafortoday 

Kamadenu: Govinda. #watercolour #krishnafortoday  : Govinda. #watercolour #krishnafortoday

Mahasweta Devi: Indefatigable chronicler of the oppressed

Mahasweta Devi: Indefatigable chronicler of the oppressed : “I don’t want to die,” she said, “I want to live forever.” There was so much to do, so much to write about. If she did die, however, she wanted to be buried and a mahua tree planted on her grave.... Mahasweta Devi In essence, Mahasweta was a chronicler of oral history and a lobbyist for change. From British-era tribal hero Birsa Munda, fictionalised in  Aranyer Adhikar  (The Right to the Forest), to the struggle in Nandigram and Singur, she spoke out for the oppressed. Her decades-long demands for the rights of the disempowered, for a more humane society cutting across class, caste, ethnicity, gender and religion, sadly, are still relevant. M G Warrier

Rahul jibe, Jaitley retort spice up inflation debate

Rahul jibe, Jaitley retort spice up inflation debate : To Congress leader’s dig of ‘arhar Modi’, FinMin says rains will cool pulse prices... SIGNS OF RECOVERY This refers to the report “Rahul jibe, Jaitley retort spice up inflation debate” (The Hindu Business Line, July 29). Let us look at the same event from a different angle. After a long time, Rahul Gandhi came to parliament armed with a long note on a topic of public interest and read it out in a relaxed mood. It has to be said to the credit of current Lok Sabha that the House is allowing debate on serious issues. Here, let us remind ourselves that In-house debates are an integral part of a healthy parliamentary democracy. Once this recognition sinks in and every member does his/her homework and confronts the treasury benches with the issues affecting the people, policy formulation will graduate from a bureaucratic process to real legislative procedure guided by informed discussion among people’s representatives. On the

Minding the language

Old theories are gold : This refers to ‘Economists give up on Friedman’s big idea’ (July 28). Economic theories are based on human behaviour which keeps changing; they need not stand the test of time... The Hindu Business Line, July 29, 2016 Letters Mind the language This refers to the report ‘Modi may get me killed’ (July 28). Expressing the fear of death done by a strong- can be pardoned by expanding the meaning of ‘freedom of expression’. But it is a different story when a responsible CM alleges that the PM may get him killed and try to spread fear down the line. While several politicians with criminal backgrounds have entered the legislature, no such thing has been attributed to Narendra Modi. It is shocking to see Kejriwal mimicking the language used by ground level political ‘leaders’. Looks like the time is ripe for political parties to come to a consensus on the language used to ‘attack’ opponents. MG Warrier Mumbai

Chicago University welcomes Raghuram Rajan back to academics

Chicago University welcomes Raghuram Rajan back to academics : Welcoming Raghuram Rajan back to academics, the prestigious University of Chicago has... Too early to say Bye...Still... Excerpts from my today's response to an article by AV Rajwade in Business Standard: " Of course, I have in mind the blacking out of the RBI Annual Report 2014-15 by the media. Dr Raghuram Rajan, in a newly introduced chapter “Governor’s Overview” in that report, had flagged several concerns bothering him. It is not late yet and one need not wait for Dr Rajan’s memoirs to find out what all irritated him or hindered his functioning. He must have been ‘professionally hurt’ and his decision to quit at the end of the ‘contracted’ term might also have been guided by the indifference of GOI and other stakeholders in the financial sector to the views expressed by him. He is much taller to be dwarfed by the barbs of economist-turned politicians." This has reference to some online comm

AV Rajwade: Central bank independence

AV Rajwade: Central bank independence : What does India need more: growth and jobs, or low inflation? RBI, back to central stage This refers to AV Rajwade’s piece “Central bank independence” (Business Standard, The Other Side, July 28). Former RBI Governor Duvvuri Subbarao deserves a special ‘Thank You’ for drawing the attention of media and all stakeholders to the role of Reserve Bank of India in the present Indian context. This is also proof to show that a book, if professionally written and marketed can influence public opinion. I am referring to the media attention Subbarao’s book “Who Moved My Interest Rate?” has drawn in such a short time. Of course, I have in mind the blacking out of the RBI Annual Report 2014-15 by the media. Dr Raghuram Rajan, in a newly introduced chapter “Governor’s Overview” in that report, had flagged several concerns bothering him. It is not late yet and one need not wait for Dr Rajan’s memoirs to find out what all irritated him or hindered hi

Irom Sharmila’s next stand

Irom Sharmila’s next stand : Irom Chanu Sharmila’s has taken almost everyone by surprise. Hers has been a powerful act of peaceful resistance that effectively undermined the government’s legalistic, obfuscatory defence of the... HAVE POSTED ONLINE COMMENTS... M G Warrier

C. Rangarajan writes: Reforms are here to stay

C. Rangarajan writes: Reforms are here to stay : The Eighth Five Year Plan, in the writing of which I had a role, spelt out in some detail the rationale for reforms. Rao, as Chairman of the Planning Commission, had read the draft and approved it... Democracy and reforms Perhaps by coincidence, two scholarly articles, one by Pulapre Balakrishnan on “The crisis of Indian democracy” and another by C Rangarajan on reforms appeared in the Hindu on the same day (July 27). Both raise some basic issues which have a bearing on governance and economic growth. The top-down approach to democratic processes worked well during the first two decades of Indian republic. From 1970’s, political leadership started showing signs of disintegration and the federal system slowly started becoming a stumbling block in taking forward even the well-intentioned developmental measures. We refused to pay enough attention to literacy and did not give adequate attention to removal of poverty. This approa

The crisis of Indian democracy

The crisis of Indian democracy : While India’s economy has received periodic attention, mostly during critical moments defined by food shortages and foreign exchange outages, the workings of its democracy have received next to none... July 27, 2016 Democracy and reforms Perhaps by coincidence, two scholarly articles, one by Pulapre Balakrishnan on “The crisis of Indian democracy” and another by C Rangarajan on reforms appeared in The Hindu on the same day (July 27). Both raise some basic issues which have a bearing on governance and economic growth. The top-down approach to democratic processes worked well during the first two decades of Indian republic. From 1970’s, political leadership started showing signs of disintegration and the federal system slowly started becoming a stumbling block in taking forward even the well-intentioned developmental measures. We refused to pay enough attention to literacy and did not give adequate attention to removal of poverty. This appro

Letters: Selecting RBI governor

Letters: Selecting RBI governor : PM and FM should have the final say in the selection of incumbents to bodies like RBI... Selecting RBI Governor* This refers to the BS interview with Dr Duvvuri Subbarao (Business Standard, July 26). The book, for some time to come, will be a reference point for debates on relationship issues between GOI and RBI.  No one can dispute that  positions like those of RBI Governor cannot be filled by following selection  processes followed by professional bodies like UPSC, if that is what  ‘bureaucratic process’ means. But, though the quality of incumbents has not  been compromised in selecting RBI Governor on 20 out of 23 occasions, the  recent trend to keep them under pressure, either by extracting commitments  while appointing or perennially harassing them by openly announcing  ‘expectations from RBI’ is disturbing. In his book, Subbarao has said, without making any specific observation to that effect, that Dr Rakesh Mohan whose name was floated

Book-clash of titans

Book-clash of titans : Reimagining Subbarao Vs Chidambaram... Excerpts: " Even as Subbarao was contemplating the title of his book, Chidambaram started reading   The  Game of Thrones . He was thrilled by the cutting dialogues, and feeling clever, called up Subbarao. “Inflation is so terribly final, while growth is full of possibilities.” But he had underestimated Subba. The RBI Governor simply said, “Spoke to Modi yesterday. Winter is coming.” Chidambaram, enraged, tried the Scarlett O-Hara track, “Sir,” he cried, “You are no gentleman! You will be  Gone with the Wind !” Subbarao commented, “Frankly, my dear, I don’t give a damn.” Chidambaram, ever the wily lawyer, changed tracks to Iron Man. “What’s the point of owning a race car if you can’t drive it?” But this is Subbarao we talk about. He simply shrugged (Chidambaram turned white) and said quietly, “Jarvis, do me a favour and increase the rates some more.” Read on using the link... M G Warrier

Martin Feldstein: America's exploding deficit

Martin Feldstein: America's exploding deficit : Federal debt is projected to rise to 141% of GDP by 2046, thus, the next president must plan for this quickly... Interesting projections...The rich are not as rich as they want us to believe... M G Warrier

Who is killing poetry?

Who is killing poetry? : I used to be of the opinion that poetry was dying because readers were killing it. And maybe that’s true. In fact, maybe it’s dead already — I don’t know anyone who reads poetry anymore, though I know... Excerpts: " Sure, self-publishing is a concern from the point of view of quality control — all over the world (as Valeri Macon found out when it was reason enough for her to step down as poet laureate in North Carolina) and poetry is no stranger to cultural controversy, as was true since anti-Semitic Ezra Pound was handed the Bollingen Prize. Readership levels will rise and fall according to what you put on the top shelves and push into the market with furore. That’s not a secret. But, even though I love the art form, dabble in it and would love to spend hours listening to someone talk about it — the constant cultural debate that forms such a central part of it in every book, poem, discussion and lecture of it makes it easier for me to keep my love of it i

Urjit Patel Committee Report: Flawed premise, misplaced prescription

Urjit Patel Committee Report: Flawed premise, misplaced prescription : Indians have been described as argumentative. In everyday usage, it means they argue for the sake of arguing. And there is more than just a grain of truth in it. Look at the criticism of the current...

Shankar's weekly

Shankar's weekly Excerpts: " A fter Indira Gandhi declared Emergency in India, many cartoonists were in peril. When government told Shankar that some cartoonists in his magazine will be proceeded against, I was in jitters, since I too had lampooned Mrs.Gandhi in three or four cartoons. But Shankar talked to Mrs Gandhi personally and assured her that he would close down the magazine and requested her not to harm any cartoonist. So we were let off the hook. This was possible only because of the respect Shankar commanded in the Nehru family. This brought out the qualities of Shankar that made him a good human being. He put the welfare of those who worked for him before the survival of his magazine. A few days later I got a letter personally signed by Shankar explaining the circumstances under which the magazine had been closed down, and promising to pay all the arrears due to the contributors. Sure enough, I got a cheque within a couple of weeks.Later, when Shankar passed away

Debashis Basu: Tales from Mint Road

Debashis Basu: Tales from Mint Road : Mr Chakrabarty, who had his feet well-grounded in both business banking and consumer issues, was a rare commodity in the central bank because of his clear thinking, ability to learn, frankness, drive and integrity... DEMYSTIFYING RESERVE BANK OF INDIA As mentioned in the article, Duvvuri Subbarao has been a fun-loving bureaucrat. He enjoyed the wit and wisdom of even his Hyderabad barber, whom he provoked and got an answer that ‘he (the barber) didn’t know much about interest rates, but he did know that if he talked about them his (Subbarao’s) hair used to rise, and it was easier to cut it’.  The book so far has been reviewed on the basis of highlights published in the media as part of pre-publication propaganda. Once we start reading the 350 page book which claims to demystify India’s central bank, one gets a feeling that it exposes also the unprofessional way in which the political leadership and the finance ministry handles Reserve bank of India

INFLATION TARGETTING: ALSO REGULATE INTEREST RATES

Also regulate interest rates This refers to the report “Inflation Target may be Retained” (Economic Times, July 23). The policy formulation apparatus at Mint Road has been tampered by a blind Financial Sector Legislative Reforms Commission. The damage was controlled by the presence of one person called Dr Raghuram Rajan at the helm in RBI. GOI forced inflation targeting on Reserve Bank of India even before there was consensus among stakeholders on the parameters that should form the basis for computing inflation! A governor whose tenure was too short to be apprehensive of any problem in meeting a target with enough leeway (4 plus or minus 2 percent) accepted the challenge. Now, experts are telling media that inflation can be controlled by changing the ‘measure’ used to quantify it. As the main worry seems to be about ‘high interest rates’ why not go back to regulating interest rates? Such a change in approach may be necessary as banks are still targeting NIMs of 2 to 3 percen

WEEKEND LIGHTER: RBI, changing with the times

WEEKEND LIGHTER: RBI, changing with the times (July 23/24, 2016, No. 30/2016) Weekend Lighter is posted every Saturday @mgwarrier.blogspot.in Feel free to mail your views on this edition of WL to mgwarrier@gmail.com I Opening Remarks A response* I treasure “Many thanks Govinda for your intellectual and moral support. It's always meant a lot to me. Best regards Subba” *Former Reserve Bank of India Governor Dr D Subbarao’s response to my observations on the highlights from his book published in the media (Refer WL, July 16/17, 2016) Dr Raghuram Rajan Online comments posted @Allbankingsolutions three years ago: “Dr Rajan, as is evident from his academic and professional record, is a fast learner and capable of finding solutions to the toughest of economic and monetary problems. His challenges lie in (a) how fast he will be able to ‘unlearn’ the IMF lessons which were moduled with prosperity of the developed world in view and (b) how quickly he will