Tuesday 22 July 2014

Biased media - a threat to democracy

Arnab Goswami has countless fans in the country. However some people differ from the generally accepted view that Arnab Goswami speaks for the people and asks questions on behalf of the nation. I believe that he comes with preconceived verdicts and not only pronounces his target guilty on his Newshour show but also dispenses the punishment right there. Mr Goswami seems to subdue the voice of dissent and does not allow any room for defense. That's not a fair trial. Anyway, a TV anchor on prime time national channel is not supposed to hold a trial regardless of of how popular they are. Just allow both sides to have a fair debate. A good anchor is supposed to be a clever facilitator of a civil debate.

I urge friends to sit through a few of this popular Newshour show on Times Now at 9pm IST every weeknight, if you haven't already and judge for yourself. Unlike Mr Goswami, I would be happy to hear from everyone regardless of their views being different from mine or similar.

 

Sunday 6 July 2014

I want strong institutions ...

Even in the run up to the General Elections it was evident to most that its going to be - Abki baar Modi Sarkar. In April I wrote on this blog that even 5 years may not be enough for the Modi Sarkar to deliver the growth that we all crave for. I had cautioned that we should not expect Achche din in days, not even months. But I never expected public patience to be limited so much, fueled by irresponsible comments in the media regarding price rise and rise in passenger fare.

We should be impatient. But for the right things - strong institutions, lean and efficient governance and much-needed reforms however bitter the taste in the beginning.

Three sharp thinkers of our times - Swaminathan S A Aiyar, Swapan Das Gupta and Gurcharan Das - speak their minds in today's Sunday Times of India. If you can't catch the full text (links provided), here are some excerpts.
Swapan Das Gupta: A Lean Govt Machine.....
The Modi government has inherited a treasury that has been accustomed to spending more than what the revenues bring in....For far too long India has been living in a financial bubble that needs to be punctured urgently before the whole thing explodes in our faces... The next eight months must be devoted to shedding the accumulated flab of government.This is politically not as daunting as some may imagine. A lean government does not imply a mean government: it implies a more nimble and fit for purpose government. In Gujarat, Modi injected a new attribute to the functioning of the state: efficiency. Now, it is his responsibility to ensure that legitimate cuts in wasteful government expenditure are coupled with a change in the culture of governance.There are three aspects to this project. First, there has to be a discernible improvement in the quality of the interface between the citizen and the state. The state does not regulate every aspect of our public life. Where it does it must fulfill its obligations with courtesy and without the payment of the obligatory under-the-table ‘service charge’. Secondly, the budget must send out the clear signal that the future of development depends on the explosion of entrepreneurship. This does not cost money. It involves lessening red tape, scrapping over-regulation and injecting stability into the financial system. Finally, Jaitley has to begin the process of unplugging the life-support systems of a terminally ill public sector. The logic of what the Reserve Bank governor has recommended for public sector banks must be extended to all public sector undertakings. They must be encouraged to either perform or become history.In the political cycle, there is only a small window for being bold and establishing political distinctiveness. The first budget of a government blessed with a clear mandate is the obvious starting point. By rising to the occasion, the budget can set the tone for the entire first term of Modi.

Swaminathan S A Aiyer: ...Corporatize the Railways

Modi must declare he will convert the railways, currently a departmental enterprise, into a number of listed corporations within two years. Simultaneously , he should abolish the annual ritual of the railway budget. Back in 1991, a report of the Asian Development Bank estimated that the railways had half a million excess workers, but these were never trimmed.Passenger travel is in no sense an essential good requiring subsidies. Yet successive railway ministers have kept raising freight rates to keep passenger rates artificially cheap. An analysis by Avinash Celestine in The Economic Times reveals that the ratio of freight to passenger rates has risen in India from 2.13 in 1950 to 3.68. In China, it is less than one. That’s why China is a low-cost, highly competitive country, while India is the exact opposite.Ending the politicization of the railways will be impossible without corporatization 

I agree with Swami’s idea of Corporatization of the Railways. But before the NDA govt makes any such move I recommend that they first corporatize the public’s thinking. Strong public perception will have to be first created that corporatization does not necessarily mean higher fares and anti-people. Govt should get out of most business. Set clear and socially responsible guidelines, encourage free competition and let the marketplace take over. May be some shares be offered to Railway employees at discount to boost pride and efficiency. Let these small investors become wealthy by growing their Corporation through dedication and efficiency. This will be a good retirement benefit for them. Singapore did that 40 years ago already with their Bus service (SBS)!! Let ALL our public services except armed forces, judiciary and police be run like accountable corporate entities, not necessarily for-profit, not run by Govt but truly OF the people, BY the people and ofcourse for the people. 

But most importantly, as Gurcharan Das pointed out today, Modi must sensitize and educate his voters about what he really meant by Achche din and when will they come and about his so-called bitter pill. It would do him and us some good to slightly sugar coat it, but bitter pill he must administer. There's no going back.

Gurcharan DasAfter months of talk, its go time for new PM

In one respect Modi should not be silent. He should learn from his predecessor’s mistake and insistently make a compelling political case for economic reform. He must keep educating Indians about the link between reforms, jobs, opportunities and prosperity . He needs to explain that only the competitive market (not giveaways) can deliver a middle-class society and that a rules-based capitalism leads to dignity, not crony capitalism. Modi has spoken about “tough“ decisions that are urgently needed to enforce financial discipline, and they risk losing popular good will. With this warning he has set the stage for a hard-nosed budget on Thursday.He is being advised to be prudent, to make incremental changes and not unsettle the system. But he must not forget that an aspiring nation has elected him precisely because he is an outsider and wants him to shake up the system. So, he must not listen too much to others and follow his own dharma.

So Friends, lets ask for Strong Institutions. Growth will automatically follow. With a weak government, achche din kabhi nahin ayenge!

Would be happy to see a different point of view. Please comment or share with your friends if you agree.