Showing posts with label Prime Minister of India. Show all posts
Showing posts with label Prime Minister of India. Show all posts

September 21, 2012

PM Manmohan Singh speaks on Doordarshan: Need for Economic Literacy

Keeping aside the follies of Congress-I and the pros and cons of bringing in FDI in retail, happy to see the s(p)inister Mamatha get beaten at her bluff. With 19 seats, You cannot dictate terms to a coalition partner of 205 seats. And for God's sake, when will the politicians get a tutorial in Economics? Doing a Bharat bandh and making the economy halt for a day makes life tougher for the common man. Some part of the output of the day Rs.12500 crs. plus is gone out of the mouths of poor people - daily laborers, shift workers, etc. BJP should understand that being asinine and idiotic in approach wont get them the votes in the next election.


While I am neutral to both the parties, can BJP give a declaration in writing that they will not raise fuel prices if they come to power? Can Mamatha have a bet with CPI that she will never take harsh measures against the common man? In Economic realities, you can never do it. BJP should realise that the toughest decisions in Economic policy were taken by Congress-I - they raised fertilizer prices more than 350 per cent, they raised fuel prices several times (out of compulsion not out of sadism because the crude oil prices never spiralled out of control during BJP regimes), FDI in other sectors.

BJP and the opposition in those times never did a roadshow against the raising of fertilizer prices. (Fertilizers is one of the key goods imported by India - apart from Crude oil, Coal, Gold etc.). So, the opposition is usually selective about the protests they want to do rather than fully understand the ramifications of any decision. India has become a democracy before its people became literate, as Nandan Nilekani said, which is not the case with other democracies in the world. So, neither the people nor their chosen representatives have found the time and maturity to ripen their knowledge of what drives decisions in the world - directionally and structurally. It is the responsibility of everybody involved to discuss threadbare the consequences of policy decisions.

If the ruling party hasn't done it, it is the responsibility of the media, the elite, the educated, the opinion-leaders, the state governments, the legislators, the opposition party members - everyone, has a stake in understanding and explaining how future is impacted - if we don't allow Fresh Foreign Capital, technology, management and resource inputs of other kind into Retail or any other sector where efforts to keep it indigenous have either failed or created issues of scale and profitability.

Agents who sold post-office deposits are selling mutual funds, actuaries (and everybody down the value-chain of technical qualifications) who used to be employed by LIC are today gainfully employed in private insurance companies, entrepreneurs who are happy to be small shop-keepers are going to find alternative ways of scale-up or be pushed out.

Change is inevitable and the last 10 years of window the retail has got has only seen few flourish but many stick with old ways of handling money. There are more issues at play here but the payoffs are going to be better than worse.

Tonight, when Manmohan Singh addresses the nation at 8pm, I hope we will all see the need for a healthy debate on policy reforms instead of stalling parliaments and disrupting economic activities. If you like this post, share it with as many. If you don't like this, lets talk more and discuss why. Let us develop more economic literacy.

Post-Script: Since this was posted, Prime Minister spoke on National Television. His speech was measured, informative, persuasive and hard-hitting: "Money does not grow on trees", "They did not succeed in 1991 and they will not succeed now." Here's the link to his full speech.

http://www.moneycontrol.com/news/economy/pms-address-tonationfull-text_760537.html?utm_source=twitterfeed&utm_medium=twitter&utm_campaign=Feed%3A+moneycontrol%2FiOjZ+%28Moneycontrol+Updates%29

June 20, 2012

I want to be President of India, not Prime Minister!

When the country's next-deserving Prime Minister no longer aspires the job but instead goes for the post of President - it should tell you something about the risk-averseness setting in - even for politicians. An office of power (PM) is less attractive than an office of ornamental power (President), it seems.


An office like Presidency gets you the top perks (a plush residence built by Edward Lutyens and two terrific residences in Secunderabad and Shimla plus a salary of Rs.1.50 lacs p.m that hardly gets spent plus an upkeep cost within a budgeted Rs.22.5 crs.p.a. plus overseas junkets which was highest during the current president's rule) and is the best retirement plan for any politician. Pranab Mukherjee may have had it in him to seek active politics but this move hints that nobody is interested in becoming a PM anymore - it involves too many risks of decision-making, scams, reputational damages and thankless jobs and finally, you are not even in the driving seat. What the hell! Might as well enjoy getting chauffer-driven official state car of custom-built heavily armoured Mercedes Benz S600 (W221) Pullman Guard.




But this is a good sign - it means politicians are getting risk-averse and the bottom of the establishment cycle with multiple headwinds blowing in the corridors of business, society, economy, legislature, media and judiciary is somewhere visible. I am an optimist at heart, and feel this phase will pass soon - we will emerge stronger. Too much pessimism is also unsustainable.

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