Monday, November 10, 2014

Four Monsters who are holding our progress

Narendra modi has been inviting foreign investors in our country to put their money in India. He is giving promises to these foreign investors that investing in India is very safe and very profitable. However, we see that at the same time many Indian investors are going out to invest their money in other countries. Why this is happening? Foreign investors obviously want to know answer to this question. On this post I want to elaborate on this question. I have been studying this subject for some time and while doing that I found four monsters who are causing this transfer of investors out of the country. Presently, we do not have any solution to control these four monsters. I call them monsters because they are so big that ordinary efforts will not be enough to control them. These four monsters hold key to this country and marginalizing them to make them behave so that investment and doing business in India will become convenient is not easy. Most business prefers to keep out of any controversy to avoid their wrath. I am not any businessman and so I feel it is not difficult for me to expose them and suggest solution to this problem. Somebody has to do it for the benefit of all foreign as well as Indian businessmen so that they can come and invest in India. We all know their coming in India is essential for our development. I hope this post will clear all haze around this topic and these foreign businessmen will be able to voice their concern to our government and clearly demand that these monsters are quelled. India's progress needs that these four monsters are controlled in the most democratic manner. Let me spell them for my readers.

Politicians is the first monster to begin with. Even though politicians are now being controlled by making them answerable to people; the efforts however are not enough and more control on them is required to make them behave as servants of people and not masters of people. Mr. Modi has called himself kamdar meaning a servant but how much of this will reflect in actual political circle is yet to be seen. Today we have rules by which politicians who contest have to declare their assets but there is no exposure to the party high commands. Recently somebody has filed a PIL asking political party high commands to declare their financial position in Court but that is not enough. Total answerability to people should be made mandatory for all party high commands by law to bring proper control on their activities. Looking to the present arrangement we observe that this high command is the actual rulers in this country even though they do it though members of their party. MPs and MLAs are only carrying on orders given by these high command of that party. Lot of work is being done in this direction and so let me hope that in due course this monster may be properly tamed and made to work properly. Taming this monster is comparatively easy because they have to face elections and at that time they have to answer voters. Other monsters of whom I shall write are not having this type of restrain and so taming them is very difficult; we shall see that in the following part of this post.

Bureaucracy in second monster to be controlled. This monsters in as yet not brought under proper control at all. Bureaucracy is not answerable to people thus far. Their behavior is most objectionable. I came to know from some elected politicians that most failures of political parties are due to non co-operation of their bureaucracy. Failure in keeping promises is often the cause for fall of many parties. People blame them for not fulfilling the promises they give during elections but the real culprit is the bureaucracy involved. This bureaucracy simply does not co-operate with the concerned political person and the failure occurs. These politicians do not declare that fact to their voters because they are not wanting further harassment from the concerned bureaucracy. To resolve this and to bring this second monster in proper control we must make this bureaucracy totally answerable to people. We often hear news that MP or MLA assaulted a bureaucrat. Most cases only register this part but conveniently connive at the other side of the story. Why that politician became so desperate is never considered. I have found in most cases this bureaucracy never cares to reply or even acknowledge the letters sent to them or if at all they do it it is done very late and the reply is mostly very ambiguous. A regular legislation must be passed to that effect so that similar to RTI all government departments care to answer inquiries send to them by citizens. The nature of questions will be direct to them asking them to explain why they have failed? Why the delay? It must be obligatory for every officer to give answer to public and all their replies will be open for public scrutiny. General behavior of offices in all government and pseudo government organizations is of total arrogance. They behave as if they do not care for people. This must stop. Foreign investors will suffer due to this high handed behavior of these bureaucrats. Indian businessmen are already suffering due to this behavior of bureaucracy. Nobody can control it since we do not have any powerful law to make them answer people. Our law designers, being themselves bureaucrats, are playing safe while preparing laws. It has been noticed that our bureaucracy is comprises of most incompetent, lazy, corrupt and unintelligent people. They are known to be competent in offering excuses to cover up for their incompetency, laziness and inability! Interesting part is that all bureaucrats are working in unison and try to protect each other from any onslaught on any one of them through any inquiry. This makes our Indian business to accept other option of going out of this country. Because there is no way to counter them. Bureaucracy is always right in this country whatever they do. Nobody can question them as there is no proper legal provision to help public who wants to ask them. This monster is primarily responsible for most failures of our governments. Making them answerable and giving out names of these incompetent persons holding top positions should be the way to make people know exactly who are stopping the progress of our country. News media is reluctant to mention their names while giving news of their irresponsible work. We often consider that our politicians are the cause of failures but the detailed study of most projects reveals that the real culprit is bureaucracy involve. While we can replace politicians we cannot remove a bureaucrat from his job. It is at least not that easy. At the most they are transferred to other department, that does not make any punishment to them. They are always sitting in some chair or other. At the most they are transferred but that is not enough to bring efficiency in the government. I know of one corrupt bureaucrat who was transferred from MHADA Mumbai office, to Nanded office. I asked him how are things with him? He told me, he is very comfortable and making his money in Nanded projects! He further told me cases are pending and they will keep pending. He seems to be not bothered about them at all. This is the condition with all bureaucrats. To protect them they often make use of rules demanding confidentiality in governmental work. This provision is most cleverly misused to avoid public interference. They are by today's available system most protected persons and invincible. A bureaucrat is particularly protected by some laws so that their courage has become a menace to public. Whoever may come as a political party final rulers are these bureaucrats. Controlling this monster is possible if we make them answer people on questions demanded on them similar to RTI act. However, I was told by some that present RTI act is not enough to squelch or tame this monster of hardened bureaucracy. Foreign investors make it compulsory for our government to bring all necessary modifications in the present law so that this monster is in complete control by making them answer public inquiry without protection of confidentiality. Confidentiality was introduced by British law to control public who were not masters then. Today this public is master of the country and so keeping things from them by this act of confidentiality is anti democratic and so must be abolished. Only those matters related to border security and national security may be retained under this act but this act of confidentiality is misused extensively by our bureaucrats today to protect their misdeeds. Foreign investors must be careful of this monster. So long as this monster remains as it is today; coming to India to invest is amounting to falling in their trap. I do not want to write any more on this. I include Police department in this monster but they are worst amongst all bureaucrats. Other bureaucrats indulge in only civic crimes but police indulge in both civic as well as criminal.

Judiciary is third monster. This monster is worst of all. They think they are gods! This makes it impossible to question them. Two measure tactics they very often use are, delay tactic; in this they prolong court cases so much that the plaintiff is either demoralized or dead and so the culprit gets free. Our judiciary system is primarily designed to pretend to be helping justice but in actuality it is working to protect culprit. If we study our laws this becomes obvious but at present nobody dare voice against that. The way loose ends and ambiguity maintained in designing laws makes it very clear. They have various excuses to justify this motive, I have already written about it in my previous posts and so I do not want to write on that here. Second tactic is more sinister. Transfer of judges is the tactic which prolongs cases and helps the accused immensely. Judiciary must be made to explain why the delay? A judge must compulsorily give acceptable reason to plaintiff and also the accused for the delays taking place in handling cases. It should be compulsory to produce such reports on cases a judge is working on. Before all that, government must make them judges, understand that they are servants of people and not any gods! This will bring these judges to some sense and may help improve their behavior with people. About second tactic any transfer of a judge from any case will require prior permission of concerned parties, both plaintiff and defendant. A judge cannot request for transfer from a case under any reason or excuse. Without that such transfers will not be possible. If this restriction is imposed, one experienced advocate told me, many cases will get resolved in record time and will help reduce the list of pending cases considerably. Last but not in the list is reducing holidays our judges enjoy. If these corrections are introduced it will improve our judiciary system so that foreign investors will feel assured of justice in case they have to face litigations in this country. Which they will have to undertake if they have to do business in this country. Cases pending for several years must be put under special inquiry. If these measures introduced things may improve. Our judiciary very proudly claims that in Indian judiciary they are so particular to protect innocent person that they will allow 100 criminals to set free to save one innocent person. This claim shows that it has license to set free 100 criminals in the excuse of saving one innocent! This claim actually exposes the callousness (and pro-crime attitude) of our Judiciary system. This has made it a monsters.
Reserve Bank of India is fourth monster. For all commercial activities this monster becomes the most dangerous fellow to manage. Interesting part is that RBI is not answerable to people. People cannot ask them questions about their wrong decisions. Here I am referring to the position of depositors in banks.
The manner in which RBI is trying to avoid its own moral and financial responsibility towards depositors in an ailing bank whatever it is, whether commercial or co-operative, in a very convenient manner is very objectionable. But there is no provision at present that a depositor can ask RBI a question and make it give an acceptable reply. Nobody in RBI is answerable for the failure of a bank. This situation is very dangerous for all depositors whether he is an India or a foreigner.
The very purpose of RBI, as the central bank of India is to safeguard interests of all depositors with all banks. RBI very proudly mentions it also. When RBI sanctions a license to function as a bank it is expected to keep watch on that bank's functions; that includes lending and recovery activities of these banks as well as other related functions. For that purpose RBI takes regular periodical inspection of the working of these banks and that is to ensure that all licensed banks function normally and do not do anything wrong so that it may go red. If RBI notices that the working of a bank is not in accordance with the norms recommended by RBI; the RBI is supposed to take disciplinary action against that bank. Concerned defaulting bank management is compulsorily supposed to go by that guideline and improve its working so that no further damage is done to the funds depositors have kept with the bank. As we all know that the very functioning of any bank is in proportion to its deposits. Therefore, protecting these deposits is the prime responsibility of that bank as well as that of the RBI. Now the question comes as why in spite of all these arrangements a bank goes red? Obviously that happens because the failing bank does not observe guidelines given by the RBI. Second question comes is that why RBI did not take serious note of that bank as it does not observe its guidelines? If RBI had been appropriately vigilant that would not happen at all. That means when a bank fails it is responsibility of both banks, concerned failing bank as well as RBI.
Depositors depend on the truthfulness of RBI and all his deposits are safe so long as RBI is properly vigilant about all these deposits. When anybody puts its money with any bank he presumes that it is safe because RBI is looking after its safety. That is the meaning of license. People do not trust any bank unless it is properly licensed by RBI. This suggests that when a bank goes red it is the equal responsibility of that bank as well as RBI. If RBI had been properly vigilant no bank can ever go red.
Now that the banks has gone sick RBI behaves as if it is not concerned. This behavior of our Reserve Bank of India is reprehensively wrong. RBI must accept equal responsibility for the failure of that bank. However, we see that our RBI wants to shed that responsibility in a very convenient manner. No bank goes red in one day. It takes many years for a well running bank to go red so much so that need for takeover arises. There is enough time for RBI to take essential disciplinary action and if it had taken that action that bank would not have failed. That clearly means that all failures of all banks are due to irresponsible manner in which this RBI works. This is the true nature of this fourth monster. We have seen so far many banks are duped by its managers and directors but RBI has not bothered to give any explanation about how such a thing could happen in spite of vigilance of that bank? The only way to control this monster is to make it compensate all depositors of their deposits unconditionally. If this condition is imposed on this monster RBI will behave more responsibly. In addition to that proper punitive action taken on the officers concerned. There is a miserable provision to give only one lakh by way of some insurance, what type of cheating is that? Why only one lakh why not complete money? What is the meaning of license of RBI? Many such questions come up and RBI must reply acceptable answer. However, there is no such provision and this standard bank of India goes without answering. We have seen American Standard Bank helped their banks in trouble and all money of depositors was returned to them. American Standard Bank did not tell depositors that they go to hell like our RBI. Today no such condition exists and so RBI is working in the most irresponsible manner. There is no punishment to these four monsters for not working their duties properly and that has made them careless about their duties. All foreign investors must demand that all these and more controls are imposed on these four monsters so that they are tamed and work properly. I noticed during economic crisis in U.S.A., that central bank provided enough funds to concerned banks and all depositors were paid their money. This is the example that shows what is sense of responsibility. Unless and until this sense of responsibility is inculcated in these four monsters our country will never make real progress. We talk a lot of corruption but what is corruption? That is effect of these monsters. So long as they are not tamed corruption shall not go from this country.
Finally I shall warn all foreign investors who may be wanting to come to India and open their businesses should take precautions as mentioned above. If they fail to do it and invest their funds and efforts in India and get stuck up in the tentacles of these four monsters they should not blame poor people of India because, they are those unfortunate Indians who are already stuck up in the grip of these four monsters and are suffering. We are not having any power to protect our prospects from these monsters; we have to keep suffering; but outsiders have an option of not coming to this country at all. The way big business from this country is gradually leaving this country one can imagine how impossible it is for people of this country to control them.
Recently our new PM of this government told in one speech that money of bank belongs to poor people of the country. This is a very wrong statement. That money does not belong to all poor people of this country but it is a very private investment of individuals poor or rich. By calling this money belongs to all poor people he seems to have given license to banks to dupe private depositors! This is a very dangerous statement and every body must be careful what is next from this politician. Of course Mr. Modi comes from the first monster.



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Ashok Kothare, for stories, http://ashokkotharesblog.blogspot.com/
I reckon, for philosophy, http://kothareviews.blogspot.com/
You may visit blog, Freedom of Expression, http://blogs.siliconindia.com/kothare for intelligent discussions.

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