WEEKEND LIGHTER: Focus on public goods
WEEKEND LIGHTER: Focus on public goods
(January 28/29, 2017, No.4/2017)
Weekend Lighter is posted every Saturday
@mgwarrier.blogspot.in
Section III: PM Modi's
Xmas Mann ki baat
I
Opening remarks
It is gratifying to see that more and more viewers are visiting
Warrier’s Blog @mgwarrier.blogspot.in I consider it as an encouragement that
some friends have started posting their comments also. Thanks to all.
Focus
on public goods
The BS interaction with former RBI
Governor Y V Reddy (Business Standard, January 25) gives deep insight into the
conduct of bureaucrats, politicians and economists of different denominations
which is dependent on their background and career path. Such revelations should
help present and future incumbents who are destined to play their role in
policy formulation and implementation, which, all do with welfare of the people
in mind.
The concern expressed by Dr Reddy
about the neglect of public goods need special attention from today’s policy
makers. While public goods at primary level include those listed (environment
protection, public health, security and law and order) and deserve policy
focus, the role of ‘distributive justice’ in management of resources cannot be
underestimated.
Of all the resources, the measurable
one is financial and therefore the role of Reserve Bank of India in managing
currency, monetary policy and debt (internal and external) becomes of paramount
significance in India’s economic growth. Dr Reddy’s observation that
‘undermining the identity of RBI should be a matter of concern’ should be
viewed in this context. As banking system works on public trust, undermining
the stability and strength of the institution responsible for the financial
sector regulation and supervision will have an impact on the institution’s ability
to perform its mandated role.
M G Warrier,
Mumbai
HEED THIS 67-YEAR-OLD
TRYST: GOPALAKRISHNA GANDHI
http://www.thehindu.com/opinion/lead/Heed-this-67-year-old-tryst/article17093837.ece
Excerpts:
“Isolated power
While
supremacists love their own very particular crowds and those crowds love them,
they are, as persons, very lonely. And loneliness finds two friends: secrecy
and arbitrariness. A mist of trail-less circumstances surrounds a supremacist’s
decisions. And these decisions come to be taken impulsively, whimsically.
Sometimes they can be inspired, but on most occasions they create more problems
than they solve and can also cause havoc. Isolated power is isolated from the
advantages of consultation, from the benefit of an equal colleagueship. It is
isolated, therefore, from the great bonus of republican partnership. So fond
does he become of the dulcet tones of his own voice, that his auditory powers
atrophy. Even when he seems to be listening to others, the personal supremacist
is, in fact, listening to his own voice reacting to what he is hearing. He is
his own singer, his own song and his own listener. The self-centrism of an
elected leader is, in democratic terms, an irony. In republican terms, an
anomaly. It scarred the period 1975-1977. It must not, in the same or modified
form, in de jure fact or in de facto spirit, be readmitted into our polity, our
political culture.
There
are signs of it wanting to.”
II
Recent responses
RBI’s multiple roles
This refers to Ajay Shah’s piece “RBI
independence : The middle ground” (Business Standard, Snakes & Ladders,
January 23). While accepting the writer’s right to retain his point of view,
let me reject as unacceptable the ‘truism’ in the concluding paragraph that
“Humans are the same everywhere, and all humans desire arbitrary power,
laziness and corruption”. Perhaps, the Financial Sector Legislative Reforms
Commission(FSLRC) with which Shah was associated built up its report keeping
this thought in the background. This article has skipped the developments
during the three-year period when the presence of Dr Raghuram Rajan, a
professional with common sense sorted out most of the relationship issues between
RBI and GOI.
Shah has oversimplified things by
bringing RBI on par with other regulators working ‘under’ Finance Ministry. In
the Indian context, RBI’s role has evolved differently and as Y V Reddy
reminded recently financial sector regulation is only one of the many functions
RBI is responsible for. The article revives pre-FSLRC, or pre-2013 issues which
are no more relevant. The need to align monetary and fiscal policies, RBI’s
role as an expert advisor to GOI in
forex and debt management and sole authority for currency management is not in
dispute today. Post-demonetization confusion
about ‘who did what and when’ is essentially media creation and is
getting sorted out fast.
None of the statutory bodies
including judiciary and RBI can be ‘autonomous’ or be ‘independent’ from the
government of the day, as ultimately law of the land will prevail. Analysts and
media confuse laymen by using these words to divert attention when one or the
other statutory body raises the issue of functional freedom within the contours
of law. As rightly argued in the article, what is needed is, filling up all
vacancies on the boards of statutory bodies by individuals who will apply their
mind and will not look to North Block before opening their mouth. Only such
empowered boards will be in a position to infuse professionalism in the working
of institutions like RBI.
Maybe, the draft Indian Financial
Code mentioned by the writer could be a reference point to begin another
comprehensive exercise to reform India’s Financial Sector. This will have to be
participatory, involving GOI departments/ministries concerned and statutory
bodies whose function will be reviewed.
M G Warrier,
Mumbai
Trump’s missed opportunity
Trump missed one more opportunity to
win the confidence of the world outside US. This is how. He had all of 20
minutes when the entire world was watching him to see whether President Trump
is going to be any different from Donald Trump who fought and won the election.
By focusing on America and its
problems like poverty, unemployment, inadequate infrastructure and an
inefficient education system he has exposed the downward growth trend of his
country which has been evident for sometime now. By offering the country back
to the Americans, he has given a message that he is not going to take the
responsibility to rebuild or strengthen US either.
By ignoring the world outside in
the inauguration address of January 20,
2017 Trump lost the first opportunity for making amends for the negative
impression that was gaining about him in the outside world on which his country
is dependent eternally for survival.
M G Warrier,
Mumbai
III
Leisure, spirituality
PRIME MINISTER MODI’S XMas MANN KI BAAT
Excerpts:
“So many rumours
were spread, even the fight against corruption and black money was sought to be
tainted with shades of communalism. Somebody spread a rumour that the spelling
on the currency note was faulty, someone said salt prices had spiraled, someone
proclaimed that the 2000 rupee note would also be withdrawn, even 500 and 100
rupee denominations notes were rumoured to be on their way out. But I have seen
that despite rampant rumour mongering, citizens have stood firm with their
faith intact. And not just that, many people came to the fore and through their
creativity and intelligence, exposed the rumour mongers, brought out the
falsity of the rumours and established the truth. I salute this great ability
of the people also from the core of my heart.”
***************************
Comments