WEEKEND LIGHTER: Three Questions to Dr Raghuram Rajan
WEEKEND
LIGHTER: 3 Questions to Dr Rajan
(September 23/24, 2017)
Section III Leisure: Verse 11, Saundaryalahari
I
Cover Story
3 questions to Dr Raghuram Rajan:
Why you didn’t do, what you
wanted to do?
This
refers to TT Ram Mohan’s piece “Rajan in the limelight again” (BS, Finger on
the pulse, September 19). Those who have been following Dr Raghuram Rajan at
least from mid-2013 will have no doubt about what the former RBI Governor meant
by titling his 2017 book “I Do What I Do”. So far, Rajan has used his
‘properties’ and timing with the deftness and precision of a magician. His
understanding of the Indian media and the ability to change the directions of
cameras and mikes single-handed is well-known. This much of introduction is the
minimum needed, to make the following observations about ‘what he did’ during
the last one year.
Once
the media and the analysts start contemplating over the content of his recently
released book and the bold statements Dr Rajan made during his speeches and
media interactions during the first half of September 2017, several questions
will resurface, which will predictably haunt the former RBI Governor when he
comes back to India next time, perhaps armed with another book. What Dr Rajan
conveniently ignored is the fact that time did not stand still in India for one
year period during which he was on a self-imposed silence on Indian affairs.
Three issues selected at random which may need further elucidation from Rajan
are:
(a)
Demonetization:
If Dr Rajan gave his views not favoring withdrawal of legal tender character of
Specified Bank Notes as early as in February 2016, why he left it to his
deputies in RBI to associate with the preparations culminating in the November
8, 2016 announcement by Prime Minister Modi?
(b)
RBI’s reserves:
Was he convinced personally about the ‘adequacy’ of RBI’s reserves as certified
by Malegam Committee, when the level of reserves was steadily depleting from the 12 percent (of total assets) level
targeted by RBI much earlier and almost achieved in 2009? Was he succumbing to
GOI pressure to ‘transfer more funds’?
(c)
On page 211 of
the book, Dr Rajan regrets his inability to get parity with GOI, in retirement benefits for RBI staff. Why he
refrained from convincing GOI about an issue he was deeply concerned?
M G Warrier, Mumbai
II
Recent responses
HR at the top
This
refers to Shyamal Majumdar’s piece “Public sector chiefs deserve better” (Business
Standard, Human Factor, September 22). Institutions are made of people and
successful institutions have talented and efficient people providing leadership
at the top. This is equally applicable for organizations in private and public
sectors irrespective of their age or size and recent experiences in India give
enough supporting evidence to prove this.
Since
1950’s India has recognized the prominent role public sector need to play in
economic development and supported development of strong public sector
organizations in core sectors like banking, oil exploration, defense, space
research and so on. Success stories of
PSUs in India conflicted with the commercial interests of the private sector in
India and abroad. 1970’s and subsequent decades saw conscious moves by the rich
and the powerful lobbying against PSUs and tasting success in weakening the
institutional structure in the public sector.
There
was no better way to make PSUs weak than making their top managements
spineless. Top positions in PSUs and even regulatory bodies like RBI became
pre-retirement transit homes for senior bureaucrats. These ‘yours obedientlies’
accepted briefs from GOI forgetting the mandated roles of the institutions they
presided over. In the banking sector, with the exception of SBI, no PSB was
allowed to retain own identity and were pawns in the hands of junior finance
ministry officials.
Occasional
emergence of one Vinod Rai here or a Raghuram Rajan there asserting their
rightful positions were deftly handled by vested interests (read money power)
with the help of an obliging media and subservient political leadership. This
explains the short-term tenure appointment of individuals in top positions in
PSUs. Many accept the positions either to improve their CV for the next
assignment (sometimes abroad) or as a reward for ‘favours showered’ earlier.
Interests of the organisations they preside over, normally is not one of the
top priorities that weighs in their selection.
M G Warrier, Mumbai
Rahul’s willing
http://www.thehindu.com/todays-paper/tp-national/anger-growing-against-modi-govt/article19724115.ece
Response:
This
refers to the report “Anger growing against Modi govt” (The Hindu, September
21). Looks, planetary positions are changing in Rahul Gandhi's favour after a
long time. Geographically, today there is no better place than US for a
political leader of Mr Gandhi’s stature to declare his intentions to play the
lead role in Indian politics. A section of Indian media has assigned the job of
giving the final makeover to Gandhi for becoming the main opponent to Modi to
Sam (Pitroda) for whom Delhi politics is nothing new.
Converting
the anger of the masses into an opportunity is an art. No one will dispute,
there is enough anger against Modi. The anger is growing day by day, in the
fertile grounds of demonitisation, one paisa loan waiver, beef to GST and fuel
price to cost-benefit analysis of bullet train controversies.
When
back home, the only uncomfortable thing Gandhi may have to handle is the
delaying tactics by other leaders within his own party who are not as confident
about a change of guard in Delhi in 2019 and therefore may make a last minute
bid for status quo. Gandhi need to assert his position without going back to
Sonia for help, in that unlikely eventuality.
M G Warrier, Mumbai
Law and justice
This refers to the piece “Highly
objectionable” by Jinoy Jose P (HBL, From the Views Room, September 20).
Recently, lamenting about unethical behavior by law makers, social activist and
poetess Sugathakumari in her poem mentioned about the helplessness of the frog
which got hooked by Srirama’s arrow. The frog had been taught by its mother
that Rama was the protector and when his arrow caused fatal injury, the frog
suffered in silence.
If the political leadership which
comes to power decide to do things arbitrarily or in violation of established
norms and practices, a time has come when common man feels helpless and doesn’t
even feel like going in appeal. The frustration emanates from the sense of
futility in fighting the establishment. The money power of the rich or the omnipotent
government will keep fighting in courts from the lowest level to the Supreme
Court. If after long years, if the Apex Court rules against the intentions of
the rich and the powerful (government included), the latter have their own
methods to alter laws!
GOI has tasted success in withdrawing
the pension scheme for government employees and now are confident in taking the
Aadhaar imposition forward. As media adopts a ‘blow hot, blow cold’ approach to
such issues, the other three pillars of democracy get immunity, if they become
arrogant.
M G Warrier,
Mumbai
GST was
intended to be "Good and Simple Tax". Initial hiccups indicate that
we can create a 
problems from any
solution!
problems from any
solution!
Moneylife
is in the forefront of fighting on consumers rights. Last week I "purchased"
online a month's subscription for Moneylife Magazine. I was charged Rs100
(pre-GST subscription) plus Rs18 towards GST.
A
Sulabh Shouchalay receipt is doing rounds in WhatsApp which shows:
Charges
for use: Rs 5
GST.
: Rs 1
Total.
: Rs 6
The
background for the letter published in Business Standard today (accessible
using the above link) is explained above.
M G Warrier
III
Leisure
A verse from Shankaracharya’s ‘Soundaryalahari’
explained:
Ancient
Predictions
The
compilation may interest some of us who may be interested in analysing
predictions.
M
G Warrier
Legal status of animals
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