Tuesday, April 29, 2014

Gandhian Anna would do much better than expert Bhagwati

Thought for the day
“What is the primary purpose of a political leader? To build a majority. If voters care about parking lots, then talk about parking lots.”
—Newt Gingrich (American, 1943 - )
Word for the day
Pluvial (adj)
Of or pertaining to rain; rainy.
(Source: Dictionary.com)
Teaser for the day
UP, West Bengal, Odisha, J&K, Karnataka, TN, Kerala, Bihar, Assam – BJP has antagonized the state government representing over half the Indian population.
Modi will definitely find it difficult to build consensus on key reforms involving states for at least initial one year.

Gandhian Anna would do much better than expert Bhagwati

Yesterday I expressed my opinion about the ideal construct of new government. I may reiterate that in my view the key portfolios should be given to serious politicians and statesmen, who have the ability to think beyond current conditions and into the realm of impossibilities. To further illustrate the point, I would like to cite the following example.
In past one decade the market for online retail in India has grown multifold. However, still the coverage area has not expanded beyond metropolitan areas and other top 100 cities. My interactions with some e-retailers suggest that the lack of access to market for people living in tier II and III town, and semi urban and rural areas where internet telecom connectivity has reached is the biggest opportunity for e-retailers. The logistics and lack of banking access are the major road blocks.
On the other hand India Post is a great network with reach to every household in the country. Unfortunately, it has been left to die on its own.
An IT and telecom minister (which includes postal department also) should think about marrying these two. India post can provide excellent last mile connectivity and payment gateway for entire e-retailing industry at little incremental cost; given that most of the cost for India Post is fixed anyways (salaries and pension). The incremental revenue could have helped reviving this great institution and also helped the nascent e-retailing industry.
Similarly, a 200kms drive away from any metropolitan area would tell you which business is the largest unskilled and semi-skilled employment generator in the country – yes it is mobile telecom. While textile industry traditionally believed to be largest employment generator has historically received humongous, often undeserved, support from the government, the telecom sector has remained at the receiving end! Have you heard anyone talking about subsidizing telecom industry for generating more employment?
The IT and ITeS services sector has grown multifold in past one decade. But unfortunately, still the wage arbitrage remains the primary driver for the industry. Same telecom minister in UPA, who also held the portfolio of HRD minister for sometime besides being simultaneously at the helm of Science and Technology ministry, did almost nothing to promote R&D activities in the IT sector so that Indian IT industry could move up the value chain. For record, the Facebook, Inc which was founded in February 2004 just 3months ahead of UPA-1, is today worth 1.5x more than the revenue of India’s entire IT industry.
We need a Raman Singh who could think of Food Security for all so that children could go to school, marginal farmers could leave unviable sustenance farming and take up more rewarding construction jobs; a Atal Bihari who could think of a massive road development program despite severe fiscal constraints to counter global economic sanctions and generate massive employment; give away key government monopolies like hydrocarbons, coal, power etc.
A Gandhian Anna could do much more for the Indian economy, than all foreign trained economists.
(Note: Names mentioned herein are purely for illustrative purpose and do not reflect any bias or prejudice on part of the author.)

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