Warrier's blog

All India Strike on September 2, 2016 M G WARRIER There is a call from several organisations including many trade unions for an ‘All India Strike’ on September 2, 2016. The ‘demands’ highlighted include issues relating to wages and job security issues including social security. In all probability, the day will pass with some dislocation of traffic, a few speeches, a claim of majority participation by workers, laments about loss of production from industry with exaggerated figures to support, simultaneously with a sigh of relief from government side that everything was ‘normal’. Last week, some last minute efforts were there from government to avert the strike, which included an upward revision of minimum wages, which, in any case, was pending somewhere for a decision. Workers’ side has dubbed some measures like raising minimum wages announced in the context of strike as an ‘eye wash’. The reverse too is true. The trade union leadership which is guided by political parties s

I am aware of India’s frustration, says UNGA president-elect Peter Thomson : Even as the United Nations General Assembly (UNGA) prepares for its next session in New York, UNGA president-elect Peter Thomson, who will take over on September 1, was in New Delhi to call on Prime Minister... Excerpts: "This is an important UNGA session. India had high hopes from the 70th session for movement on issues like the UNSC reforms but was disappointed. Given that backdrop, tell us about your talks with Mr. Modi. I had very important discussions with Prime Minister Modi. We discussed implementation of the Sustainable Development Goals (SDGs). This was the basis for my candidacy, and it will be my utmost effort to ensure that in the 71st session we do whatever we can to get the wheels turning on the SDGs. India and the PGA’s (President of the General Assembly) office will work closely on this. As you would imagine, UNSC reform and the Comprehensive Convention on International Terrorism (CCIT) w

The ill health of the nation : The National Health Accounts data for 2013-14 present fresh evidence that India continues to have a non-serious approach to the provision of universal health coverage to all its citizens. India’s... Excerpts "The National Health Accounts data for 2013-14 present fresh evidence that India continues to have a non-serious approach to the provision of universal health coverage to all its citizens. India’s health system is one of the most privatised in the world, poorly regulated and accessible only to those with income levels well above the average. All these attributes are, once again, strongly borne out by the NHA data, which lay bare the extremely low government spending on health which, at 1.15 per cent of GDP, compares poorly with even Sub-Saharan Africa. There, World Development Indicators say, the corresponding figure was 2.9 per cent six years ago. The share of State governments, which are largely responsible for provision of health ca

Letters: Lending scenario : With reference to 'Changing the lending landscape' (August 29), without doubt, several financial sector reforms, structural and in relation to savings instruments and resources management, initiated in recent years by the Reserve Bank of India (RBI)... Business Standard, August 30, 2016 Letters Lending scenario With reference to "Changing the lending landscape" (August 29), without doubt, several financial sector reforms, structural and in relation to savings instruments and resources management, initiated in recent years by the  Reserve Bank of India  (RBI) will have long-term positive impact on India's economic growth. The inadequacy of dialogue between the government of India and the  RBI  and the resultant weaknesses in the measures initiated by the latter will remain an issue for pondering even after  Raghuram Rajan  leaves Mint Road. A wholesale revamp of bulk borrowing by both government and corporates and funds man

Changing lending landscape : RBI's measures are welcome but may not be enough... Landscaping the lending and borrowing scenario This refers to your editorial “Changing the lending landscape” (Business Standard, August 29). Without doubt, several financial sector reforms, both structural and in relation to savings instruments and resources management initiated in recent years by RBI will have long term positive impact on India’s economic growth. The inadequacy of dialogue between GOI and RBI and the resultant weaknesses in the measures initiated by RBI will remain an issue for pondering even after Dr Rajan leaves Mint Road. A wholesale revamp of bulk borrowing by both government and corporates and funds management by both private and public sector organisations is overdue. The sector-specific or instrument-specific approach to funds management is doing more harm than good to the markets affected and has an impact on the public trust in financial instruments and institu

Bond boost : For RBI’s moves on corporate bonds to work, domestic institutions need to be more active... Bond market management This refers to your editorial “Bond boost” (The Hindu Business Line, August 29). A wholesale revamp of bulk borrowing by both government and corporates and funds management by both private and public sector organisations is overdue. The sector-specific or instrument-specific approach to funds management is doing more harm than good to the markets affected and has an impact on the public trust in financial instruments and institutions (including government/s) which manage them. To restore trust and reduce the damage already done by creating uncertainties in regard to public debt management and funds management by organisations like EPFO and LIC by using them as captive source for channelling resources to sectors/projects identified by GOI, some quick remedial measures should be considered by GOI in consultation with RBI: (a)   Adjourn the idea of ta

Cartoonscape — August 29, 2016 : Cartoon from 'The Hindu'... Fly escapes sledgehammer! As are most of the cartoons occupying edit page of the Hindu, the one by Keshav on ‘sedition charges’ (The Hindu, August 29) was also thought-provoking and carried a  message which need to be pondered over by not only the users of sledgehammer for killing the fly implied in the cartoon, but also by those who waste newsprint, prime hours of telecast time and other resources on relatively trivial issues on an ongoing basis. In the classic example of the ‘sledgehammer being used to kill a fly’, mostly the fly escapes, sometimes injured, but the surface which bears the shock gets broken or, if it is a gadfly which is targeted, the surface bleeds. As a nation, we need to change our way of thinking and our approach to issues, from that towards Kashmir to handling issues relating to meat and stray dogs consistent with the changing times and the long way the world has moved during the rec

Social media moved by picture of heartbroken elderly couple : A photograph of a crying elderly Canadian couple in wheelchairs, separated into two different care homes after 62 years of marriage because no beds were available together, has received international... Social security (or insecurity?) issues It was a Saturday evening, sometime during the 1970’s. I was walking on the footpath towards Vellayambalam from Sastamangalam (Thiruvananthapuram). Very few vehicles were moving on the road and many were not walking on the footpath also. I noticed an elderly fisherwoman coming from my opposite side shouting something. When reached very close, finding that she was weeping, I stopped her to find out what was the cause of her worry. She said: “Rakthathee kedakkunnu saare…payaru poloru payyan…Avante vandi idichittondu oru kaarukaaran adichu minnichu poyennu kandunikkunnavaru parayanu…Aaalu koodeettondu…Aasupathreelu kondovumaayirikkum…Petta thalla engane sahikkum saare…” (“A young

Krishna for Today: Dahi handi. #watercolor #krishnafortoday  : Dahi handi. #watercolor #krishnafortoday

Rajan prefers steady reforms, ‘mini bangs’ to ‘big bang’ changes : Says pace of reforms can pick up as global conditions become less uncertain... Mini bang reforms This refers to “Rajan prefers steadyreforms, ‘mini bangs’ to ‘big bang’ changes” (The Hindu Business Line, August 27). Despite Subramanian Swamy’s repeated reminders that Dr Rajan had his earlier education in IIT and not in an Arts & Commerce College (where Economics was an optional subject for Bachelor’s degree), one feels sad that India will miss the sane and forthright advice loaded with common sense and backed by learning and research, which the country has been listening to almost on a day-to-day basis for the last three years. Minus Swamy, rest of India and the world will still look forward to Dr Rajan’s views on economic development and financial sector reforms issues, as we are sure that he will put to effective use his three years learning of these subjects at Mint Road, while sharing his views at in

India needs mini bangs, not big-bang reforms: Raghuram Rajan : Instead of asking regulators to relax norms, the govt should provide direct subsidy to infrastructure, said the outgoing RBI governor... Subsidies and taxes Apropos “India needs mini bangs, not big-bang reforms: Rajan” (Business Standard, August 27), one feelssad that India will miss the sane and forthright advice loaded with common sense and backed by learning and research, which the country has been listening to almost on a day-to-day basis for the last three years. Who else will dare to come out with a justification for transparent subsidy as Dr Rajan has argued for. He said: “…While the RBI is a liberalizer, we have to be careful not to relax prudential regulations simply because an entity or activity is deemed of national importance. Dispensation on prudential regulation is the wrong instrument to favour such activities. A nationally important activity such as infrastructure may be very risky. To require l

WEEKEND LIGHTER: VISHWAROOPADARSHANAM (August 27/28, 2016, No. 35/2016) 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 Rajan II @ Mint Road Days before appointment of Urjit Patel as RBI’s 24 th Governor, Finance Minister Arun Jaitley had told media persons that they should not be inquisitive about the process of selection to the governor’s post and they would come to know when a decision was taken. He was, indirectly making the point that we are yet to put in place transparent processes and procedures for selecting candidates for top-most positions and if most of the time we get the right persons for the right posts, that could be attributed to the good luck of the country. While deciding on the appointment of the present SBI Chairperson also something similar happened about the ‘processes’ of selection. Now that there is certainty about a smooth ‘change of gu

Revelation of Cosmic form : Arjuna shares his extraordinary experience of beholding the Lord’s cosmic form which tries to represent and reflect His Infinite Glory that none can fathom. It is awe inspiring in its grandeur... The Hindu Faith Revelation of cosmic form Arjuna shares his extraordinary experience of beholding the Lord’s cosmic form which tries to represent and reflect His Infinite Glory that none can fathom. It is awe inspiring in its grandeur and limitless sweep. So too is the form shown by child Krishna to Yasodha on two occasions which Suka describes in detail, pointed out Sri B. Sundarkumar in a discourse. The first time it happens when He is in her lap and yawns very casually. Yasodha is bewildered to see the whole universe in the child’s mouth. But she forgets this vision and sees Krishna as her mischievous child. On a later occasion, some boys complain to her that Krishna has eaten mud. Yasodha, ignorant of His Paratva, is frightened that He would fall s

Kamadenu: Krishna looks at Yashoda, and beholds the universe... : Krishna looks at Yashoda, and beholds the universe. #watercolour #krishnafortoday ... Can we ensure that the universe remains safe and clean for the child born yesterday, till s/he grows up and takes charge? The uncertainty is writ large in the eyes of Krishna who stares at his mother! M G Warrier

Robust accounting system : Regarding ‘Calender concerns’by Mohan R Lavi (August 25), while the changing the financial year, the government should consider the estimates of receipts and expenditure of the Centre and States. The system chosen... The Hindu BusinessLine, August 26, 2016 Letters Encashing need and greed The RBI governor, Raghuram Rajan, made the following opening statement at his post-policy press conference on August 9, 2016: “If you get an email from me or any future governor promising to transfer a large sum of say ₹50 lakh to you if only you send a small transaction fee of ₹20,000 to a specific bank account, delete the email. The reality is such emails are not from me and the RBI does not give out money directly to ordinary citizens, even though we print plenty of it. While the emails usually contain very convincing reasons why you have been chosen to receive money, ask yourself why I cannot simply deduct ₹20,000 and send you ₹49.8 lakh. If you think for a m

August 25, 2016 Encashing need and greed Quoted below is the concluding observation from RBI Governor Raghuram Rajan’s opening statement to the post-policy press conference on August 9, 2016: “If you get an email from me or any future governor promising to transfer a large sum of say ₹ 50 lakh to you if only you send a small transaction fee of ₹ 20,000 to a specific bank account, delete the email. The reality is such emails are not from me and the RBI does not give out money directly to ordinary citizens, even though we print plenty of it. While the emails usually contain very convincing reasons why you have been chosen to receive money, ask yourself why I cannot simply deduct ₹ 20,000 and send you ₹ 49.8 lakh. If you think for a moment, you should not fall prey to such emails. ” Recalling this, in the context of a report relating to an FIR filed by police after duped kidney ‘donor’ tried to end her life, published in a leading newspaper on August 25, 2016. The report, inte

CHANGE OF GUARD AT MINT ROAD This weekend and the week that follows will find media debating the pros and cons of the change of guard that is happening at Reserve bank of India.  Days before appointment of Urjit Patel as RBI’s 24 th Governor, Finance Minister Arun Jaitley had told media persons that they should not be inquisitive about the process of selection to the governor’s post and they would come to know when a decision was taken. He was, indirectly making the point that we are yet to put in place transparent processes and procedures for selecting candidates for top-most positions and if most of the time we get the right persons for the right posts, that could be attributed to the good luck of the country.  While deciding on the appointment of the present SBI Chairperson also something similar happened about the ‘processes’ of selection. At that point of time, to 'select' the only candidate eligible for elevation, GOI went through 'expansion of catchment area&

People multiply India’s wealth to world top 10 : India has been ranked among the 10 wealthiest countries globally with total individual...

Savers’ concerns : This refers to ‘Institutional credit to rural sector must get more attention: President’ (August 24). The Rajan era saw RBI asserting that it was its objective to bring all institutions doing banking business within its ambit... Savers' concerns This refers to ‘Institutional credit to rural sector must get more attention: President’ (August 24). The Rajan era saw RBI asserting that it was its objective to bring all institutions doing banking business within its regulatory and supervisory ambit. It is another matter that if Rajan had explained his objective transparently, the conversion of some NBFCs as banks or the setting up of postal banks would not have seen the light of the day. The unfinished agenda in streamlining processes in banks and institution building is huge. This is in addition to matters such as rural credit management and revamping of banking channels (cooperatives and RRBs) in the rural sector. By drawing attention to the trust savers