The government of India published the composite development index of states a couple of days back and this is a very crucial piece of economic projection of development that cannot be allowed to be manipulated as it serves the following very important functions:
1. politically it can categorise a state as developed/ under developed (some politicians love to be called under developed (Bihar/ UP etc) as they get a higher share of central govt funds - while other politicians have the pride to be called developed (gujarat, tamilnadu etc) )
2. economically the index will, based on the above classification, allocate the central resources - namely the less developed states will get more funds and more developed states less funds.
the entire report can be accessed here http://finmin.nic.in/reports/Report_CompDevState.pdf
the interesting dissent note of Dr. Shaibal Gupta is most illuminating and revealing and perhaps shows up the true colours of Dr Rajan? Is he in the end just a stooge of the Congress and has no pride in the various degrees he has accumulated in an otherwise illustrious career?
the report has used the following 10 basic variables
1) Monthly per capita consumption expenditure
2) education
3) health
4) household amenities
5) poverty rate
6) Female literacy
7) percent of SC/St in population
8) Urbanisation
9) Financial Inclusion
10) connectivity
As a layman the measure of development should be income and not expenditure and therein lies the most explosive part of the report.
A. The Congress govt has in its 58+ years of misrule kept the population of the country ignorant (education is still in vernacular when we all know the power of an english medium in upgrading ones economic and social status - ask anybody in the private sector, which job pays more? - knowing english or not knowing it!!)
B. The Congress has kept the people dependent on the govt by so called subsidies - in exchange for votes - they never empowered the people to earn their own bread. (heard the adage - do charity and feed the guy for a day BUT teach him to fish and he will forever feed himself)
point B mentioned above is the reason why the first variable of the report is consumption based and not income based - BECAUSE that is what the congress government can lay claim to after 58 years of misrule - we have 90% of the population living on charity, they have no place to go and no means of upgrading themselves socially/ economically or otherwise.
for a moment when Dr Rajan raised repo rates I thought we had an ideal successor for Dr Y V Reddy to bring pride back to the Institution of the Central Bank BUT this report shows him as either incompetent or just a political lackey of the Congress.
One is willing to give him the benefit of doubt that this report was written when he was in the economic advisory team of the Congress and as such you dont have the option of doing things which are not allowed in the political spiel of things of the ruling dispensation BUT now that he is the RBI governor he can accept the report is flawed set things right.
The ball is truly and rightly in your court Dr Rajan.
1. politically it can categorise a state as developed/ under developed (some politicians love to be called under developed (Bihar/ UP etc) as they get a higher share of central govt funds - while other politicians have the pride to be called developed (gujarat, tamilnadu etc) )
2. economically the index will, based on the above classification, allocate the central resources - namely the less developed states will get more funds and more developed states less funds.
the entire report can be accessed here http://finmin.nic.in/reports/Report_CompDevState.pdf
the interesting dissent note of Dr. Shaibal Gupta is most illuminating and revealing and perhaps shows up the true colours of Dr Rajan? Is he in the end just a stooge of the Congress and has no pride in the various degrees he has accumulated in an otherwise illustrious career?
the report has used the following 10 basic variables
1) Monthly per capita consumption expenditure
2) education
3) health
4) household amenities
5) poverty rate
6) Female literacy
7) percent of SC/St in population
8) Urbanisation
9) Financial Inclusion
10) connectivity
As a layman the measure of development should be income and not expenditure and therein lies the most explosive part of the report.
A. The Congress govt has in its 58+ years of misrule kept the population of the country ignorant (education is still in vernacular when we all know the power of an english medium in upgrading ones economic and social status - ask anybody in the private sector, which job pays more? - knowing english or not knowing it!!)
B. The Congress has kept the people dependent on the govt by so called subsidies - in exchange for votes - they never empowered the people to earn their own bread. (heard the adage - do charity and feed the guy for a day BUT teach him to fish and he will forever feed himself)
point B mentioned above is the reason why the first variable of the report is consumption based and not income based - BECAUSE that is what the congress government can lay claim to after 58 years of misrule - we have 90% of the population living on charity, they have no place to go and no means of upgrading themselves socially/ economically or otherwise.
for a moment when Dr Rajan raised repo rates I thought we had an ideal successor for Dr Y V Reddy to bring pride back to the Institution of the Central Bank BUT this report shows him as either incompetent or just a political lackey of the Congress.
One is willing to give him the benefit of doubt that this report was written when he was in the economic advisory team of the Congress and as such you dont have the option of doing things which are not allowed in the political spiel of things of the ruling dispensation BUT now that he is the RBI governor he can accept the report is flawed set things right.
The ball is truly and rightly in your court Dr Rajan.
Posts
No comments:
Post a Comment