According to latest Human Development Report2009 (HDR, U.N) - migrations are hugely beneficial for the poors; further it reveals that poorest and the low skilled could benefit the most by moving, yet they face the largest barriers to movement: legal, financial, and social.
Report that came through a well groomed survey team with statistical precision might be true in their observation since upward mobility to a productive posture indeed makes the migrant prosperous and if we could prolong it to international migration then its impacts seems more visible.But it’s regret to say that these perceptions are mechanized which normally taken into account by visiting the results on the basis of economies of scale that hardly able to judge the problems in its true light.
The gains are higher for international migrants, so international migration has received much public attention in recent years especially short term migration for work.
Such migration shows lucid distinction and separate avenues for male and female labors; male migrants tends to move in the productions and constructions sector and very few in low end service activities. Contrast to that most of female migrants are found to be working in less productive service activities.
Presently they accounts for around half of the world’s migrant population, so their plights are very worthwhile to judge the actuality of benefits that migration conferred …its quite striking to found that at least in lower strata, migration makes women’s more vulnerable in absence of education and proper exposure to outer world although its varies on patriarchal patterns and official policies of that specific areas as well.
Gender perspectives on migration is very crucial since the report estimates that nearly one billion peoples across the glob are migrants, among these 740 millions are internal migrants-almost four times as many as those who have moved internationally;so,it’s now an issue of survival to the one seventh of the world population.
As per the report, India stands at 134th position with HDF value of 0.612 which marks hardly a rosy picture for Indian growth story; what this report shatters most is the complete obliviousness of the rural migration from India and other developing countries and their same valuation with high profile migration that normally tends for positional change and career advancement rather than a quest for survival.
Mass migration from north Bihar, Terain region of Nepal, Chakmas of Bangladesh can’t be compared with the inter state migration in U.S or even it couldn’t comparable with the exodus from Kerala to Gulf countries.
The basic thing which this report is severely missing the distinction between low end migration and high profile migration; for understanding better the plights of forced migrants, it would be essential to look from cultural and ecological perspectives apart from economic ones.
Subordination of villages and degradations of city life are more or less the outcomes of same development agenda that pushes common men for wrenching migration for attaining even minimum rudimentary facilities that hardly appeared before them at their native places.
For saving the villages and stopping the forced migration, it should be first task for development agencies to end the disguised unemployment in rural areas by creating proper productive atmosphere and strive make these areas the true place of productions.
For ensuring the dream of equal and just societies as well the attainment of financial inclusion plan, it should be foremost task of every policy makers to strive for seizing these areas as place of consumption by spurting a new entrepreneurial revolution from villages. Hope in future time we would see some positive change in our rural landscape through inclusive planning.
Atul Kumar Thakur
October8th2009, New Delhi
atul_mdb@rediffmail.com
Thursday, October 8, 2009
Paradoxes of Banking Consolidation
Heading through the cutting edge of modern finances, sometimes policy makers tends for noble experiments with its existing businesses to break the inertia or status quo.
In recent quarters, banking industry and even the overall financial sector has witnessed upright positional shifts with unpleasant repercussions; reasons are many and it’s an open secret now but such eventuality couldn’t be easily surpassed through only following the cunning tactics instead to enlighten the knowledge of history and maximum avoidance of willy-nilly practices would be somehow more healing.
Banking consolidation in Indian context very much seems paradoxical, because Indian banking is too diverse to accommodate in single policy frame.
These banks are possessing numbers of inheritances in their own set of condition; for Regional Rural Banks (RRBs) consolidation has enhanced its efficiency but same can’t be true for other banks because of their distinct compositions.so, the foremost task should be to assess the overall nature of their structural and operational pattern and then strive for next innovations. India’s public sector banks (PSBs) including of RRBs were emerged through a very cautious deliberation to imparting banking facilities for larger masses under the vigilant regulation of Reserve Bank of India.
To a certain extant Indian banks have done commendable job in last four decades to penetrate through the requirements of institutional credit and remaining banking facilities in both urban and rural areas; despite this India is still a shabbily under banked country.
Banks are still lending less than half of as proportion to Gross Domestic Product, what a strong economy without exposing to hyper inflation should have; Indian banking here need to follow the basics, the same way in which it succeeded during recent downturns. On the operational side bank must choose to focus on rural segments where the maladies of private lending are still persisting; by appropriating a hassle free day to day banking practices and more rationalization of service charges from less empowered and under banked population.
Private sector lenders must also endeavor in similar way since the rural areas are still unexplored and they may be heaven of business in coming years; of course their expertise in local conditions rather than their size going to determine the pace of their success.
Today ensuring swift financial inclusion should be the top task before the government to keep the wolf from the door (Avoiding hunger); indeed that would need more meticulous exploitation of our own expertise rather than borrowing the abandoned outdated western ideas of banking consolidation.
United States President Mr.Barack Obama has recently reiterating his fear for unnecessarily big size of banks which creates hurdles in operational efficiency; in same manner top western economists including Joseph Stiglitz, who is known for his fair speaking, preaching the cautions to escape the loopholes of banks giant size.
Stiglitz has firm view that” banks too large to fall may also be too difficult to handle…crux of his opinion is to move in the direction of rationalization of policies as per the local conditions and requirements instead to lost in the unrealistic myopia of universal model to consolidate the banking business to its last extant.
Indeed, up gradation of services instead of size that going to help the banking industry at large…we have account of sixty nine bank failures in ongoing financial meltdown and countless bankruptcies of both institutions and common men’s through unrealistic experiments.
Failure of giant Lehmen Brothers that was many fold bigger in its size to India’s largest bank State Bank of India(SBI) shows us that true competency does not necessarily lies in its size…Indian banks are not crooks, so our brooks certainly
not spoil them.
Atul Kumar Thakur
Octobers8th2009, New Delhi
In recent quarters, banking industry and even the overall financial sector has witnessed upright positional shifts with unpleasant repercussions; reasons are many and it’s an open secret now but such eventuality couldn’t be easily surpassed through only following the cunning tactics instead to enlighten the knowledge of history and maximum avoidance of willy-nilly practices would be somehow more healing.
Banking consolidation in Indian context very much seems paradoxical, because Indian banking is too diverse to accommodate in single policy frame.
These banks are possessing numbers of inheritances in their own set of condition; for Regional Rural Banks (RRBs) consolidation has enhanced its efficiency but same can’t be true for other banks because of their distinct compositions.so, the foremost task should be to assess the overall nature of their structural and operational pattern and then strive for next innovations. India’s public sector banks (PSBs) including of RRBs were emerged through a very cautious deliberation to imparting banking facilities for larger masses under the vigilant regulation of Reserve Bank of India.
To a certain extant Indian banks have done commendable job in last four decades to penetrate through the requirements of institutional credit and remaining banking facilities in both urban and rural areas; despite this India is still a shabbily under banked country.
Banks are still lending less than half of as proportion to Gross Domestic Product, what a strong economy without exposing to hyper inflation should have; Indian banking here need to follow the basics, the same way in which it succeeded during recent downturns. On the operational side bank must choose to focus on rural segments where the maladies of private lending are still persisting; by appropriating a hassle free day to day banking practices and more rationalization of service charges from less empowered and under banked population.
Private sector lenders must also endeavor in similar way since the rural areas are still unexplored and they may be heaven of business in coming years; of course their expertise in local conditions rather than their size going to determine the pace of their success.
Today ensuring swift financial inclusion should be the top task before the government to keep the wolf from the door (Avoiding hunger); indeed that would need more meticulous exploitation of our own expertise rather than borrowing the abandoned outdated western ideas of banking consolidation.
United States President Mr.Barack Obama has recently reiterating his fear for unnecessarily big size of banks which creates hurdles in operational efficiency; in same manner top western economists including Joseph Stiglitz, who is known for his fair speaking, preaching the cautions to escape the loopholes of banks giant size.
Stiglitz has firm view that” banks too large to fall may also be too difficult to handle…crux of his opinion is to move in the direction of rationalization of policies as per the local conditions and requirements instead to lost in the unrealistic myopia of universal model to consolidate the banking business to its last extant.
Indeed, up gradation of services instead of size that going to help the banking industry at large…we have account of sixty nine bank failures in ongoing financial meltdown and countless bankruptcies of both institutions and common men’s through unrealistic experiments.
Failure of giant Lehmen Brothers that was many fold bigger in its size to India’s largest bank State Bank of India(SBI) shows us that true competency does not necessarily lies in its size…Indian banks are not crooks, so our brooks certainly
not spoil them.
Atul Kumar Thakur
Octobers8th2009, New Delhi
Sunday, October 4, 2009
Geniusity of Rajkamal Chaudhary
Maithili language and literature has been culminating through a long walk in history until it started to find a new genre of literature in mid part of last century. Uprightly that could be memorized as next golden phase after the great Jyotireshwar Thakur-Vidyapati age; the factor of overlooking some more remarkable phase of achievements are the exuberant manifestations from that new literary generation which was unlikely to preceded in near past.
Looking back to that generation and recalling giants like Baidyanath Mishra”Yatri” (Nagarjun), Harimohan Jha, Lalit, Dhumketu, Fanishwar Nath”Renu”could be very solacing for literary enthusiasts which would be grew more exulting by shout of praise for foremost among them, Rajkamal Chaudhary. He was a stock genius who accepted niche role to beguiling Maithili literature to a new posture which was dragging previously and largely failing to extrapolate the numerous unconventional approaching problems from changing social dynamics. Rajkamal Chaudhary was a doyen of Maithili literature and even one among Indian literature albeit if the barrier of language could be bursted, then of course his work is worth of universal claim with myriad of universal concern it entrusted.
Rajkamal Chaudhary undoubtedly has most prolific presence in the sunnyside of Maithili literature along with quite symmetric resemblances from his name. His family members deserves utmost credit for tracing the jewels like quality in an infantile and naming such meticulously as Rajkamal, Manindra, Phulbabu (Traditional Maithili call name for loving one)much before his attainment to scholarship and fame. As par with contemporary trend Rajkamal Chaudhary was also born at his maternal place in Rampur haveli in east Mithila (North Bihar) on 13th December 1929; although his ancestral village was Mahishi in Saharsa district that is world famed for its scholastic tradition. Rajkamal’s early childhood was spent in his village but later he moved with his father, who was a Sanskrit teacher in middle Bihar’s town Gaya; he passed matriculation with high distinction from there.
Further phase of his life was full with experiments and wandering albeit finally he passed B.Com from prestigious Patna University; meanwhile he also married with Sashikanta Chaudhary in Chanpura village (In present Madhubani district) .Through his sharp instinct and voracious learning, he proceeded much above from his academic and professional achievements since he never conquered a suitable institutional position for himself. Reasons might be his immaterial nature and particularly his short life span that led to fiendish eventuality. However that couldn’t extrude Rajkamal to write a new chapter in literary history and force to expurgate the existing maladies in Maithil society with superb universal connotations.
In his literary voyage, he was a man of letters with amazing farsightedness; hence he aspired and succeeds in three major domain of literary expressions like, novel, story and poetry. Comparatively prose was his major thirst, despite this he penned numbers of poetry in both Maithili and Hindi language albeit many of them failed to appear in physical shape. In spite of concealment, we are presently capable to clasp his six collection of poems, namely as Kankavati, Audit Report, Mukti Prasang, Vichitra, Sargandha and Macchli Jall and many more may be in future if proper strive would be made to retrieve it. Rajkamal was a promising creationist who barely allowed any frills to enter in his literary productions; likewise his poetry reveals it and its epithet which consisting utmost sensuality with diverse humane plights sounds in immaculate manner.
It would be quite imperative here to recall that Rajkamal Chaudhary had conceived the conceited view about his Maithil identity and he never stepped down to derive metaphors for his creative vision from his native milieu. There were many reasons to postulate such affection for strife ridden Mithila through expounding the contemporary harsh realities in its territory and even in entire country. That was the phase of chaos at many fronts like, political, social, economical, ethical etc... Disillusionment was quite rampant from newly earned democracy which started to gloom and force an entire young generation especially of its intelligentsias towards unrest. Quite naturally Rajkamal was too much integrated with that intellectual class who used to keep eagle watch on worldwide movements and persuade to modify the faulty axioms.
Rajkamal had unbeaten the criticism for his daring and unconventional stand throughout in his life time that indeed seemed awes trucking. He was an astute visionary in Indian literary community who pronounced inner contradiction of humane mind as catalyst for all external complexities of social relationships; further he emphasize on western way of psychoanalysis and enviously drew inferences from Sigmund Freud to unleash the hidden as well as rudimentary conceived sinful relationships. At both personnel and creative level he has been up fronting with elegiac concern for harsh realities besides enjoined with intention to solve the persisting maladies; further he kept his vehement opposition to the nexus of its causes like, feudalism, poverty, floods, sinful eliticism, improper matrimony, male chauvinism, jealousness, personifications etc.
He poignantly followed and tried to curb its ramifications through his novels in Hindi; “Machhli Mari Hui” and “Taash Ke Pattoon Ka Sahar” are foremost among them, which try to contempt on fabrication of immoralities and illicit relationships within the elitist circle. Both his novels were instinctively close to Aldus Huxley’s “Brave new World” and George Orwell’s “Nineteen Eighty Four”, hence at first moment, that couldn’t desirably vindicate albeit it remains open for ”re-reading” as Jacques Derida suggest to find new meaning out of every fresh reading exercise. His rest novels in Hindi (“Nadi Bahti Thi”, “Sahar Tha Sahar Nahi Tha”, “Agni snan”, “Aadikatha”, “Bis Ranion ke Bioscope”, “Dehgatha( Suno Brijrani), “Ek Anar Ek Bimar” are also similarly resembled the concerns. “Andolan” was his lone novel in Maithili that was based on Maithili’s language movement in the city of Calcutta; it also marked his own involvement in the movement to raise the concern for Mithila region.
He was among the finest story teller of his generation and an iconic figure for succeeding literary generations. It is truly amazing to see the huge number of stories in both Maithili and Hindi; he managed apart from many plays and hundreds of essays in such short span of time. His commitment was worth of extolation since his literary deliberations never extricated from its goal and proceeded in felicitous manner; indeed he had importunate response for fetishism in action and thought. Some Maithili stories of Rajkamal Chaudhary are very essential to capitulate the deeper understanding of his works.
His first published story “Aprajita (Vaidehi, October1954)”, presents subtle account of perennial natural tragedy of Mithila (floods) and its repercussions on human lives through a desperate train journey; “Andhakar (Vaidehi/ May1953)”, tells on contradictory relationship under the shadow of religion, partition and sin.“Phulparaswali (Vaidehi/August1955) could be remembered as his magnum opus which illuminates the moral strength of Maithil women in even distressed phage. Rajkamal reached to his zenith through depicting Rickshaw puller protagonist, Shadashiv as his cousin and woven a very meticulous set of relationships among them with centralizing the presence of Phulparaswali, symbolizes Mithila’s ethical virtue. “Lalka pag (Vaidehi / Katha Visheshank1955), which also had its dramatic revelation, reveals untold moral victory of first wife over heart wrenching male chauvinism ended with one sided sacrifice of Mithila’s women.
“Kirtaniya (Vadehi/January1956)”, sketches the life of beggars; “Kopad (Vaidehi/May1956)”,ended with progressive ideas of inter caste marriage; “Damyantiharan (Vaidehi/July1956),” comes with a story of conditionally deprived family indulged in flesh trade for survival which strike with similar delineation of east Bengal’s refugees plights in Ritwik Ghatak’s cinema like “Bari Theke Paliye”. “Channar Das (Vaidehi/September1956)”,told the incarnation of a beggar’s pair for new life out from their existing profession; “Kiranmayee(Rachna Sangrah/1956-First all India Maithili literary conference)”, narrates the premature widowhood, sacrifice and many empathies for their plight but inability to materialize in absence of proper resources.
“Satti Dhanukain (Pallavi/May1957)”, depicts the betrayal of husband with a commuted wife; “Kharid- Bikri (Pallav/June1957)”, raised the concern for immorality of perception with a wretched women affected by the partitions. “Babu Sahebak Tik (Vaidehi/July1957)”, witnessed the metamorphosis of a falling feudal amidst the market pressure and leverages of city life; “Sahastra-Menka( Mithila Darshan/Visheshank1957)”,reveals the ill social treatment with helpless widows and wretched of Mithila.“Mugdha-Vimugdha( Pallav/March1958)”,lights on debacle of unmatched marriage,” Mallhak Tol: Ek Chitra(Vaidehi/August1958)”,concerned with the plight of Mallah(fishermen) community who possess an ingredient place in Mithila’s fish crazy society, in very short space he became successful to capture their actual reality. “Yatrak Aant (Mithial Darshan1958)”, leads to a scenario of impoverished socio-economic structure of Calcutta in which a helpless parent caught in severe daily struggle to save their ill son and dignity of daughter in law.
“Kamalmukhi Kaniyan(Kathaparag collection1958)”,candidly attacks on pseudo perception of dominant male community over the decent albeit feeble Maithil women’s, it’s a forward attack on male chauvinism. “Aakash-Ganga(Mithila Darshan/Visheshank1959)”,is an account of a falling feudal father and his relationship with estranged daughter who gone away for a matrimonial ties against of his wishes, story concludes with his proactive and judicious move which also marks the inception of flexibility in feudal structure. “Kadambari Upkatha (Vaidehi/March1960)”, has frank bearing of humanity by a childless widow who crossed all the artificial boundaries of caste, opportunism, jealousness etc; “Panidubbi(Mithila Mihir/10th May1964)”,reflects the inner state of a newly wedded women during her first journey on steamer, she simply lost in her circle of belongingness that recalls the closed nature of contemporary Maithil feminism.
“Surma Sagun Bichare Na(Mithila Mihir/9th May1965)”,is moving around the infatuation for bereaved wife that seems like a dutiful sacrifice and also transcend his honest deeds in all relationships; “Ghari(Mithial Mihir/30th January1966)”,tells the romance in inter religious web which eventually conclude with the interference of domestic compulsions. ”Maach (Mithila Mihir/30th January1966)”, is a spectacular delineation of craze for auspicious fish among Maithil’s,this story is loaded with heavy symbolism and sophisticated representation of Maithil life philosophy before a cross cultural debate.”Sanjhak Gaach(Mithila Mihir/13th March1966)”,has stuffed with the gloomy inferences from its protagonist who caught in wrenched contradiction about his prospective role with belongingness, accidental death of his sister in law leads to an in-depth synthesis of someone’s helplessness.
“Samudra(Mithila Mihir/11th September 1966), presents confrontation of female protagonist with the wider concern for her existential being…it’s a saga of unmatched matrimony;”Param Priya Nirmohi Balam Hammar Pranpati(Mithila Mihir/30th October1966)”,is consists with a marathon letter of newly wedded wife to her husband about their expectation and mixed fortune ended through overt numerous account. It was characteristics of Rajkamal Chaudhary to present a serious theme in satirical way… indeed he was an accomplished user of satire. ”Kichho Alikhit Patra(Maithili Darshan)”,written with the pseudo name of Anamica Chaudhary in extraordinary and candid craft to expose the plights of subjugated women’s of Mithila,it’s an ultimate height of fiction.”Gamme Rati Rati Me Gam (Bharti Mandan)”, virtually breaking the illusion from villages, he found same sinful habitual practices in villages as they frequent in urban spaces. ”Bahindai,Aspatal,Bangam Aa Kono Ekta Sapna(Mithila Mihir/30th April1967)”,narrates the story of Bahindai,a young widow faces a new proposal of material life but remained undetermined…an another jolt on unmatched matrimony that create such plot.
”Ekta Champakali Ekta Vishdhar(Mithila Mihir/15th June1975)”,appeared posthumously which reached behind the real cause of improper marriages…involvement of lust remains the utmost cause of females misfortune in Mithila. Somehow list became longer but his contribution is so sacrosanct that it’s very difficult to leave one piece of literature for another. In his very short life span, he did exemplary job through his creative means to express his deep concern with desperate elements of Maithil society. Indeed his initiative was epoch making especially the manners in which he visualized the complex cognition of human mind and their ambiguous outcomes like, improper marriages, sinful relationships etc. His concern was broad, so he canvassed them in same dedication with punishing hardship on personnel front albeit nature shaped its cruel verdict for this epoch maker. Its eventuality was his untimely departure from this mortal world on 7th June1967 at Rajendra surgical ward, Patna Medical College and Hospital. Rajkamal or Phool Babu too loved among his folks, his premature demise with combating deadly disease left deep strain among entire literary circle in Mithila and even in whole country. But even after four decades he is yet to have the place he deserves …his contribution is great and comparable to the great works of Premchand, Muktibodh, Sharat Chand Chattopadhyaya, Moppsant (Spainish), Loo Soon (Chinese); his work is highly eligible for exposition before the larger masses, which would be the real homage for him.
Baidyanath Mishra”Yatri”(Nagarjun),was dejected through passing of his loving successor Rajkamal, commemorated a poem in his fond memory that best reflects the contention of void after Rajkamal’s missing from scene…crux is, there could be and was only one Phool Babu in Mithila, we may have to wait for generation to fill his position. Those who acquainted him personally, still recalls his generosity and involvement in community life…indeed he was intended to lift rural life out of chaos; so, despite possessing elite qualities he chosen to represent bottom of pyramids. His works more than introductions reveals his geniusity much better.
Atul Kumar Thakur
Email: summertickets@gmail.com
4th October2009, New Delhi
Looking back to that generation and recalling giants like Baidyanath Mishra”Yatri” (Nagarjun), Harimohan Jha, Lalit, Dhumketu, Fanishwar Nath”Renu”could be very solacing for literary enthusiasts which would be grew more exulting by shout of praise for foremost among them, Rajkamal Chaudhary. He was a stock genius who accepted niche role to beguiling Maithili literature to a new posture which was dragging previously and largely failing to extrapolate the numerous unconventional approaching problems from changing social dynamics. Rajkamal Chaudhary was a doyen of Maithili literature and even one among Indian literature albeit if the barrier of language could be bursted, then of course his work is worth of universal claim with myriad of universal concern it entrusted.
Rajkamal Chaudhary undoubtedly has most prolific presence in the sunnyside of Maithili literature along with quite symmetric resemblances from his name. His family members deserves utmost credit for tracing the jewels like quality in an infantile and naming such meticulously as Rajkamal, Manindra, Phulbabu (Traditional Maithili call name for loving one)much before his attainment to scholarship and fame. As par with contemporary trend Rajkamal Chaudhary was also born at his maternal place in Rampur haveli in east Mithila (North Bihar) on 13th December 1929; although his ancestral village was Mahishi in Saharsa district that is world famed for its scholastic tradition. Rajkamal’s early childhood was spent in his village but later he moved with his father, who was a Sanskrit teacher in middle Bihar’s town Gaya; he passed matriculation with high distinction from there.
Further phase of his life was full with experiments and wandering albeit finally he passed B.Com from prestigious Patna University; meanwhile he also married with Sashikanta Chaudhary in Chanpura village (In present Madhubani district) .Through his sharp instinct and voracious learning, he proceeded much above from his academic and professional achievements since he never conquered a suitable institutional position for himself. Reasons might be his immaterial nature and particularly his short life span that led to fiendish eventuality. However that couldn’t extrude Rajkamal to write a new chapter in literary history and force to expurgate the existing maladies in Maithil society with superb universal connotations.
In his literary voyage, he was a man of letters with amazing farsightedness; hence he aspired and succeeds in three major domain of literary expressions like, novel, story and poetry. Comparatively prose was his major thirst, despite this he penned numbers of poetry in both Maithili and Hindi language albeit many of them failed to appear in physical shape. In spite of concealment, we are presently capable to clasp his six collection of poems, namely as Kankavati, Audit Report, Mukti Prasang, Vichitra, Sargandha and Macchli Jall and many more may be in future if proper strive would be made to retrieve it. Rajkamal was a promising creationist who barely allowed any frills to enter in his literary productions; likewise his poetry reveals it and its epithet which consisting utmost sensuality with diverse humane plights sounds in immaculate manner.
It would be quite imperative here to recall that Rajkamal Chaudhary had conceived the conceited view about his Maithil identity and he never stepped down to derive metaphors for his creative vision from his native milieu. There were many reasons to postulate such affection for strife ridden Mithila through expounding the contemporary harsh realities in its territory and even in entire country. That was the phase of chaos at many fronts like, political, social, economical, ethical etc... Disillusionment was quite rampant from newly earned democracy which started to gloom and force an entire young generation especially of its intelligentsias towards unrest. Quite naturally Rajkamal was too much integrated with that intellectual class who used to keep eagle watch on worldwide movements and persuade to modify the faulty axioms.
Rajkamal had unbeaten the criticism for his daring and unconventional stand throughout in his life time that indeed seemed awes trucking. He was an astute visionary in Indian literary community who pronounced inner contradiction of humane mind as catalyst for all external complexities of social relationships; further he emphasize on western way of psychoanalysis and enviously drew inferences from Sigmund Freud to unleash the hidden as well as rudimentary conceived sinful relationships. At both personnel and creative level he has been up fronting with elegiac concern for harsh realities besides enjoined with intention to solve the persisting maladies; further he kept his vehement opposition to the nexus of its causes like, feudalism, poverty, floods, sinful eliticism, improper matrimony, male chauvinism, jealousness, personifications etc.
He poignantly followed and tried to curb its ramifications through his novels in Hindi; “Machhli Mari Hui” and “Taash Ke Pattoon Ka Sahar” are foremost among them, which try to contempt on fabrication of immoralities and illicit relationships within the elitist circle. Both his novels were instinctively close to Aldus Huxley’s “Brave new World” and George Orwell’s “Nineteen Eighty Four”, hence at first moment, that couldn’t desirably vindicate albeit it remains open for ”re-reading” as Jacques Derida suggest to find new meaning out of every fresh reading exercise. His rest novels in Hindi (“Nadi Bahti Thi”, “Sahar Tha Sahar Nahi Tha”, “Agni snan”, “Aadikatha”, “Bis Ranion ke Bioscope”, “Dehgatha( Suno Brijrani), “Ek Anar Ek Bimar” are also similarly resembled the concerns. “Andolan” was his lone novel in Maithili that was based on Maithili’s language movement in the city of Calcutta; it also marked his own involvement in the movement to raise the concern for Mithila region.
He was among the finest story teller of his generation and an iconic figure for succeeding literary generations. It is truly amazing to see the huge number of stories in both Maithili and Hindi; he managed apart from many plays and hundreds of essays in such short span of time. His commitment was worth of extolation since his literary deliberations never extricated from its goal and proceeded in felicitous manner; indeed he had importunate response for fetishism in action and thought. Some Maithili stories of Rajkamal Chaudhary are very essential to capitulate the deeper understanding of his works.
His first published story “Aprajita (Vaidehi, October1954)”, presents subtle account of perennial natural tragedy of Mithila (floods) and its repercussions on human lives through a desperate train journey; “Andhakar (Vaidehi/ May1953)”, tells on contradictory relationship under the shadow of religion, partition and sin.“Phulparaswali (Vaidehi/August1955) could be remembered as his magnum opus which illuminates the moral strength of Maithil women in even distressed phage. Rajkamal reached to his zenith through depicting Rickshaw puller protagonist, Shadashiv as his cousin and woven a very meticulous set of relationships among them with centralizing the presence of Phulparaswali, symbolizes Mithila’s ethical virtue. “Lalka pag (Vaidehi / Katha Visheshank1955), which also had its dramatic revelation, reveals untold moral victory of first wife over heart wrenching male chauvinism ended with one sided sacrifice of Mithila’s women.
“Kirtaniya (Vadehi/January1956)”, sketches the life of beggars; “Kopad (Vaidehi/May1956)”,ended with progressive ideas of inter caste marriage; “Damyantiharan (Vaidehi/July1956),” comes with a story of conditionally deprived family indulged in flesh trade for survival which strike with similar delineation of east Bengal’s refugees plights in Ritwik Ghatak’s cinema like “Bari Theke Paliye”. “Channar Das (Vaidehi/September1956)”,told the incarnation of a beggar’s pair for new life out from their existing profession; “Kiranmayee(Rachna Sangrah/1956-First all India Maithili literary conference)”, narrates the premature widowhood, sacrifice and many empathies for their plight but inability to materialize in absence of proper resources.
“Satti Dhanukain (Pallavi/May1957)”, depicts the betrayal of husband with a commuted wife; “Kharid- Bikri (Pallav/June1957)”, raised the concern for immorality of perception with a wretched women affected by the partitions. “Babu Sahebak Tik (Vaidehi/July1957)”, witnessed the metamorphosis of a falling feudal amidst the market pressure and leverages of city life; “Sahastra-Menka( Mithila Darshan/Visheshank1957)”,reveals the ill social treatment with helpless widows and wretched of Mithila.“Mugdha-Vimugdha( Pallav/March1958)”,lights on debacle of unmatched marriage,” Mallhak Tol: Ek Chitra(Vaidehi/August1958)”,concerned with the plight of Mallah(fishermen) community who possess an ingredient place in Mithila’s fish crazy society, in very short space he became successful to capture their actual reality. “Yatrak Aant (Mithial Darshan1958)”, leads to a scenario of impoverished socio-economic structure of Calcutta in which a helpless parent caught in severe daily struggle to save their ill son and dignity of daughter in law.
“Kamalmukhi Kaniyan(Kathaparag collection1958)”,candidly attacks on pseudo perception of dominant male community over the decent albeit feeble Maithil women’s, it’s a forward attack on male chauvinism. “Aakash-Ganga(Mithila Darshan/Visheshank1959)”,is an account of a falling feudal father and his relationship with estranged daughter who gone away for a matrimonial ties against of his wishes, story concludes with his proactive and judicious move which also marks the inception of flexibility in feudal structure. “Kadambari Upkatha (Vaidehi/March1960)”, has frank bearing of humanity by a childless widow who crossed all the artificial boundaries of caste, opportunism, jealousness etc; “Panidubbi(Mithila Mihir/10th May1964)”,reflects the inner state of a newly wedded women during her first journey on steamer, she simply lost in her circle of belongingness that recalls the closed nature of contemporary Maithil feminism.
“Surma Sagun Bichare Na(Mithila Mihir/9th May1965)”,is moving around the infatuation for bereaved wife that seems like a dutiful sacrifice and also transcend his honest deeds in all relationships; “Ghari(Mithial Mihir/30th January1966)”,tells the romance in inter religious web which eventually conclude with the interference of domestic compulsions. ”Maach (Mithila Mihir/30th January1966)”, is a spectacular delineation of craze for auspicious fish among Maithil’s,this story is loaded with heavy symbolism and sophisticated representation of Maithil life philosophy before a cross cultural debate.”Sanjhak Gaach(Mithila Mihir/13th March1966)”,has stuffed with the gloomy inferences from its protagonist who caught in wrenched contradiction about his prospective role with belongingness, accidental death of his sister in law leads to an in-depth synthesis of someone’s helplessness.
“Samudra(Mithila Mihir/11th September 1966), presents confrontation of female protagonist with the wider concern for her existential being…it’s a saga of unmatched matrimony;”Param Priya Nirmohi Balam Hammar Pranpati(Mithila Mihir/30th October1966)”,is consists with a marathon letter of newly wedded wife to her husband about their expectation and mixed fortune ended through overt numerous account. It was characteristics of Rajkamal Chaudhary to present a serious theme in satirical way… indeed he was an accomplished user of satire. ”Kichho Alikhit Patra(Maithili Darshan)”,written with the pseudo name of Anamica Chaudhary in extraordinary and candid craft to expose the plights of subjugated women’s of Mithila,it’s an ultimate height of fiction.”Gamme Rati Rati Me Gam (Bharti Mandan)”, virtually breaking the illusion from villages, he found same sinful habitual practices in villages as they frequent in urban spaces. ”Bahindai,Aspatal,Bangam Aa Kono Ekta Sapna(Mithila Mihir/30th April1967)”,narrates the story of Bahindai,a young widow faces a new proposal of material life but remained undetermined…an another jolt on unmatched matrimony that create such plot.
”Ekta Champakali Ekta Vishdhar(Mithila Mihir/15th June1975)”,appeared posthumously which reached behind the real cause of improper marriages…involvement of lust remains the utmost cause of females misfortune in Mithila. Somehow list became longer but his contribution is so sacrosanct that it’s very difficult to leave one piece of literature for another. In his very short life span, he did exemplary job through his creative means to express his deep concern with desperate elements of Maithil society. Indeed his initiative was epoch making especially the manners in which he visualized the complex cognition of human mind and their ambiguous outcomes like, improper marriages, sinful relationships etc. His concern was broad, so he canvassed them in same dedication with punishing hardship on personnel front albeit nature shaped its cruel verdict for this epoch maker. Its eventuality was his untimely departure from this mortal world on 7th June1967 at Rajendra surgical ward, Patna Medical College and Hospital. Rajkamal or Phool Babu too loved among his folks, his premature demise with combating deadly disease left deep strain among entire literary circle in Mithila and even in whole country. But even after four decades he is yet to have the place he deserves …his contribution is great and comparable to the great works of Premchand, Muktibodh, Sharat Chand Chattopadhyaya, Moppsant (Spainish), Loo Soon (Chinese); his work is highly eligible for exposition before the larger masses, which would be the real homage for him.
Baidyanath Mishra”Yatri”(Nagarjun),was dejected through passing of his loving successor Rajkamal, commemorated a poem in his fond memory that best reflects the contention of void after Rajkamal’s missing from scene…crux is, there could be and was only one Phool Babu in Mithila, we may have to wait for generation to fill his position. Those who acquainted him personally, still recalls his generosity and involvement in community life…indeed he was intended to lift rural life out of chaos; so, despite possessing elite qualities he chosen to represent bottom of pyramids. His works more than introductions reveals his geniusity much better.
Atul Kumar Thakur
Email: summertickets@gmail.com
4th October2009, New Delhi
SMEs Financial Worries
SMEs have emerged as the most vibrant sector of the Indian economy accounting for about 95% of industrial units in the country. The sector contributes approximately 40% of value edition in manufacturing and around 45% exports. It has emerged as a panacea for providing employment to around 42 million persons and promoter of inclusive economic growth.
The Planning Commissions Working Group on SMEs for the 11th Five Year Plan has estimated that SMEs need approximately Rs3000 billion in working and term loans during the plan period. This sector remains neglected since long time; a reliable database on the sector concerning with heterogeneous range of activities is the need of hour which would boost the proper policy framing.
The next step should be developing a capital market exclusively for SMEs on the lines of Alternate Investment Market (AIMs) of London, NASDAQ, NSE and even NIKKEI have separate windows for small companies. Earlier OTCEI and INDONEXT were promoted by BSE for the same purpose albeit both experiments failed; hence optimum precaution must be put in place in any further endeavors in this regard.
In present circumstances SMEs are unable to borrow sufficient funds that is absolutely alarming for both the immediate and long term perspectives; the share of Micro enterprise in net bank credit witnessed a sharp decline from 42 percent from 2002-03 to 2.8 percent in 2007-08.
The share of enterprise with an investment below Rs5 lakh fails more drastically from 2.2 percent to 1.6 percent of total bank credit over the same period. Besides SMEs sector also requires dedicated Venture Capital Funds that must be willing to invest anything between Rs2 crore and Rs50 crore to facilitate innovation in SMEs.
Presently, Private Venture Capital funds prefer to invest Rs50 crore or more and are hence irrelevant to SMEs. In view of the enormous demand for equity capital for SMEs in the country, a major initiative is required in this direction.
Challenges are heading much faster; according to All India Census (2001-02), only 14.2 percent of the registered and 3.09 percent of the unregistered Small Scale Industries (SSIs) had availed themselves of bank finances.
SMEs are vehicle of inclusive with huge potential for employment generation, therefore it wouldn’t be viable to surpass the rudimentary requirements of this sector; Basel II Norms on Banking Supervision and Mandelson plan in UK could be the fine example before Indian government to infuse financial support to SMEs.
MSMEs (Medium and Small Scale Industries) Act, 2006 modified the title enterprise instead of industry to provide proper recognition to the service sector and conferred pride of place to Micro-enterprises; ceilings are also redefined now as up to Rs25 lakh is called a Micro enterprise, up to Rs5 crore Small enterprise, up to Rs10 crore as Medium enterprise.
These modifications necessitate for change in lending pattern of financial institutions; adjustment must be made to tap the various financial requirements of SMEs. Task force constituted by the Central government and initiation of SME Rating Agency (SMERA), a group venture of SIDBI, Dun & Bradstreet Information services India ltd and several leading banks of the country are welcome initiatives for the sake of SMEs and hope that it would boost the much needed morale of entrepreneurship in the country.
Atul Kumar Thakur
October3rd2009, New Delhi
atul_mdb@rediffmail.com
The Planning Commissions Working Group on SMEs for the 11th Five Year Plan has estimated that SMEs need approximately Rs3000 billion in working and term loans during the plan period. This sector remains neglected since long time; a reliable database on the sector concerning with heterogeneous range of activities is the need of hour which would boost the proper policy framing.
The next step should be developing a capital market exclusively for SMEs on the lines of Alternate Investment Market (AIMs) of London, NASDAQ, NSE and even NIKKEI have separate windows for small companies. Earlier OTCEI and INDONEXT were promoted by BSE for the same purpose albeit both experiments failed; hence optimum precaution must be put in place in any further endeavors in this regard.
In present circumstances SMEs are unable to borrow sufficient funds that is absolutely alarming for both the immediate and long term perspectives; the share of Micro enterprise in net bank credit witnessed a sharp decline from 42 percent from 2002-03 to 2.8 percent in 2007-08.
The share of enterprise with an investment below Rs5 lakh fails more drastically from 2.2 percent to 1.6 percent of total bank credit over the same period. Besides SMEs sector also requires dedicated Venture Capital Funds that must be willing to invest anything between Rs2 crore and Rs50 crore to facilitate innovation in SMEs.
Presently, Private Venture Capital funds prefer to invest Rs50 crore or more and are hence irrelevant to SMEs. In view of the enormous demand for equity capital for SMEs in the country, a major initiative is required in this direction.
Challenges are heading much faster; according to All India Census (2001-02), only 14.2 percent of the registered and 3.09 percent of the unregistered Small Scale Industries (SSIs) had availed themselves of bank finances.
SMEs are vehicle of inclusive with huge potential for employment generation, therefore it wouldn’t be viable to surpass the rudimentary requirements of this sector; Basel II Norms on Banking Supervision and Mandelson plan in UK could be the fine example before Indian government to infuse financial support to SMEs.
MSMEs (Medium and Small Scale Industries) Act, 2006 modified the title enterprise instead of industry to provide proper recognition to the service sector and conferred pride of place to Micro-enterprises; ceilings are also redefined now as up to Rs25 lakh is called a Micro enterprise, up to Rs5 crore Small enterprise, up to Rs10 crore as Medium enterprise.
These modifications necessitate for change in lending pattern of financial institutions; adjustment must be made to tap the various financial requirements of SMEs. Task force constituted by the Central government and initiation of SME Rating Agency (SMERA), a group venture of SIDBI, Dun & Bradstreet Information services India ltd and several leading banks of the country are welcome initiatives for the sake of SMEs and hope that it would boost the much needed morale of entrepreneurship in the country.
Atul Kumar Thakur
October3rd2009, New Delhi
atul_mdb@rediffmail.com
Tuesday, September 29, 2009
Letters to Frontline-II
Subtle views have their own specialty to comprehend and rationalize the crux of matters. Present post is just the way forward in this manner... these letters have been emerged straight out of my concern with respective issues…
Budget2009 (August14, 2009, Frontline)
The Budget marks the shift of the second UPA government from the Common Minimum Programme to a programme of more liberalization. To infuse new hope into the economy it is essential to come up with a strategy that is suited to our own requirements of inclusive development instead of borrowing ideas.
Public banks (September11, 2009, Frontline)
The manner in which the Indian Banking Association acted towards almost ten lakh Public Sector bankers is a matter of grave concern (“Strike notice”, August14). The proposed merger of banks is another serious issue. It cannot be applied to the subsidiaries of State Bank of India and other nationalized banks as their business model is distinct from that of the Regional Rural Banks (RRBs). The IBA must opt for an amicable solution taking into consideration the genuine demands of the bank unions. The splendid performance of Public Sector banks in these adverse times and the implementation of the sixth pay commission report in various government departments make the bankers’ demand justifiable.
Afghanistan (October9, 2009, Frontline)
The United States has no exit strategy from its present more than half a decade involvement in Afghanistan (“Obama’s unspoken trade off”, September11). It is shocking that the military action is being prolonged by president Obama.
The United Nations must intervene to end this long, disastrous occupation and ensure swift justice for civilians. Members of NATO must think of the price they are paying for being the U.S.’ allies in its so-called war against terror.
(Atul Kumar Thakur
Ghaziabad, U.P)
September 27th 2009, New Delhi
atul_mdb@rediffmail.com
Budget2009 (August14, 2009, Frontline)
The Budget marks the shift of the second UPA government from the Common Minimum Programme to a programme of more liberalization. To infuse new hope into the economy it is essential to come up with a strategy that is suited to our own requirements of inclusive development instead of borrowing ideas.
Public banks (September11, 2009, Frontline)
The manner in which the Indian Banking Association acted towards almost ten lakh Public Sector bankers is a matter of grave concern (“Strike notice”, August14). The proposed merger of banks is another serious issue. It cannot be applied to the subsidiaries of State Bank of India and other nationalized banks as their business model is distinct from that of the Regional Rural Banks (RRBs). The IBA must opt for an amicable solution taking into consideration the genuine demands of the bank unions. The splendid performance of Public Sector banks in these adverse times and the implementation of the sixth pay commission report in various government departments make the bankers’ demand justifiable.
Afghanistan (October9, 2009, Frontline)
The United States has no exit strategy from its present more than half a decade involvement in Afghanistan (“Obama’s unspoken trade off”, September11). It is shocking that the military action is being prolonged by president Obama.
The United Nations must intervene to end this long, disastrous occupation and ensure swift justice for civilians. Members of NATO must think of the price they are paying for being the U.S.’ allies in its so-called war against terror.
(Atul Kumar Thakur
Ghaziabad, U.P)
September 27th 2009, New Delhi
atul_mdb@rediffmail.com
Friday, September 25, 2009
Lessons from Lehmen Brothers Failure
Lehmen Brothers is no more ….Alas, September2008 was truly a black month that grasped such iconic financial giant from scene, even more such financial crisis that only occurred in a generation finally amounts the toll of institutional banking failures up to sixty-nine until now.
Impact of current financial crisis could be judged in retrospect as the most financially devastating after the Second World War; no regulators (including IMF) could timely foresee the actuality of potential situation despite possessing the thousands of economists battalion. Crisis broke out with the continuing fall in U.S home prices that relentlessly faded the price of Mortgage Backed Securities (MBSs); it had also hit those who insured MBSs against default through Credit Default Swaps (CDSs).
Consequently unrealistic returns that equity investors have expected to earn by taking the additional risk simply failed to materialize. If we got back to the actual causes of such large-scale failure, it becomes essential to distinct it between practice related causes and the causes emerged through institutional tempering in some core regulation.
Like former Federal Reserve chief Alan Greenspan had kept interest rate too low for too long time which led to negative sentiments; in1999 the Glass-Steagall Act of1933, which had prevented commercial banks from tying up with risky bets on securities had been repealed, further it curtailed the checks from any irregular financial practices. Even more, Securities Exchange Commission in 2004 relaxed the limits on top investment banks to leverage; so policy makers grossly exhibit the oblivious attitudes towards mushrooming of complex derivatives.
In extreme sycophancy financial regulators couldn’t became able to assess risks and also the inherent interest of financial market participant towards multiple market transaction which finally leads to excess volatility and state of chaos in financial sector across the integrated economies.
During that period of volatility, some regulators resorted to a ban on short sales to alter the movement of market, at least for time being. Albeit, that idea could not succeed as subsequent events and studies shows us in later course.Unlike initial observation of 2008, our engagement with western market is quite deep, so it was unlikely that we would have been completely saved from a financial crisis of mammoth proportion.
Liquidity arises as major problems of Indian financial sector especially the Mutual funds industry that were handled efficiently by RBI and SEBI. So, matter siege to growing in worse direction, although the Indian financial sector particularly Mutual fund industry keep witnessing the sluggish response of its business until the bad developments are halted at Dalal Street.
Despite relieve from slowdown it’s imperative for us to keep eagle watch on the development in the crisis strife markets to assess its actual impact in Indian market; the second wish list could be to bring as many as viable product to exchange traded markets, so the regulations will have better say on unrestrained myopic financial roots of investment.
Those who cannot learn from history doomed to repeal it that shows their failure ness to rationalize the unduly persisting greed’s; U.S.A Banks in large fails to learn such exercise. U.S economy roughly account for quarter proportion of world economy when its population only accounts for five percent.
It would be worthwhile to note that despite having such superb statistics America remains the largest borrower even from developing countries like India that shows the rampant artificiality in U.S core strategy; so bubble had to burst, so it has burst.
Bubbles followed by crashes are actually a recurrent theme in financial history (Tulip mania 1634-37, South sea bubble1711-20, the long Depression1873-96, Great Depression& Stock Market crisis 1929-32, Asia/ Russia/ LTCM crisis 1996-98, Dotcom Burst2000-02 and current crisis 2007…?); the impact of the present crisis was exacerbated due to a vicious circle of defaults and liquidation…and indeed also through bandwagon mania.
Innovations is always desirable in financial domain only a distinction is must between innovations like technological up gradation and complex derivatives because the ability to use derivatives to speculate, create off balance sheet positions, increase leverage, arbitrage regulatory and tax rules… and manufacture exotic risk cocktails will continue to a major factor in derivative activity.
Tectonic shift that we need in financial market should come as meticulously crafted process instead through push-button methods that would require clarity on the goal of financial sector reform. For the time being, it is quite essential to reduce the unintended consequences of financial meltdown like spiraling inflation and increase in western government’s debt & budget deficits.
Escalation of top-notch officials in American financial circle is not a right step forward instead; a utility-based pay scheme should be approached in banks and other financial institutions that would lessen the hassles from exchequer. Keynes came back in fashion…so government should ensure employment first; like NREGS (India) was implemented much before the downturn of economies.
Now it would be quite blissful for nations to appropriate fine mix of socialism and capitalism as it was conceived by the India’s first Prime Minister J.L Nehru for India’s planned development.
Also essentially we should carry on the teaching of our grand mothers on practical financial behaviors, so we become able to avoid gaining $613 billion dollar debt on iconic bank like Lehmen Brothers( Whom we commemorate our adieu presently) as policy makers. Ultimately quotation of Charles Dickens, (Literary protagonist of Great depression era, from his magnum opus work” Great Expectations”); that “we have every thing before us and we have nothing before us “…it’s up to us how we visualized the things.
Atul Kumar Thakur
22nd September2009, New Delhi
atul_mdb@rediffmail.com
Impact of current financial crisis could be judged in retrospect as the most financially devastating after the Second World War; no regulators (including IMF) could timely foresee the actuality of potential situation despite possessing the thousands of economists battalion. Crisis broke out with the continuing fall in U.S home prices that relentlessly faded the price of Mortgage Backed Securities (MBSs); it had also hit those who insured MBSs against default through Credit Default Swaps (CDSs).
Consequently unrealistic returns that equity investors have expected to earn by taking the additional risk simply failed to materialize. If we got back to the actual causes of such large-scale failure, it becomes essential to distinct it between practice related causes and the causes emerged through institutional tempering in some core regulation.
Like former Federal Reserve chief Alan Greenspan had kept interest rate too low for too long time which led to negative sentiments; in1999 the Glass-Steagall Act of1933, which had prevented commercial banks from tying up with risky bets on securities had been repealed, further it curtailed the checks from any irregular financial practices. Even more, Securities Exchange Commission in 2004 relaxed the limits on top investment banks to leverage; so policy makers grossly exhibit the oblivious attitudes towards mushrooming of complex derivatives.
In extreme sycophancy financial regulators couldn’t became able to assess risks and also the inherent interest of financial market participant towards multiple market transaction which finally leads to excess volatility and state of chaos in financial sector across the integrated economies.
During that period of volatility, some regulators resorted to a ban on short sales to alter the movement of market, at least for time being. Albeit, that idea could not succeed as subsequent events and studies shows us in later course.Unlike initial observation of 2008, our engagement with western market is quite deep, so it was unlikely that we would have been completely saved from a financial crisis of mammoth proportion.
Liquidity arises as major problems of Indian financial sector especially the Mutual funds industry that were handled efficiently by RBI and SEBI. So, matter siege to growing in worse direction, although the Indian financial sector particularly Mutual fund industry keep witnessing the sluggish response of its business until the bad developments are halted at Dalal Street.
Despite relieve from slowdown it’s imperative for us to keep eagle watch on the development in the crisis strife markets to assess its actual impact in Indian market; the second wish list could be to bring as many as viable product to exchange traded markets, so the regulations will have better say on unrestrained myopic financial roots of investment.
Those who cannot learn from history doomed to repeal it that shows their failure ness to rationalize the unduly persisting greed’s; U.S.A Banks in large fails to learn such exercise. U.S economy roughly account for quarter proportion of world economy when its population only accounts for five percent.
It would be worthwhile to note that despite having such superb statistics America remains the largest borrower even from developing countries like India that shows the rampant artificiality in U.S core strategy; so bubble had to burst, so it has burst.
Bubbles followed by crashes are actually a recurrent theme in financial history (Tulip mania 1634-37, South sea bubble1711-20, the long Depression1873-96, Great Depression& Stock Market crisis 1929-32, Asia/ Russia/ LTCM crisis 1996-98, Dotcom Burst2000-02 and current crisis 2007…?); the impact of the present crisis was exacerbated due to a vicious circle of defaults and liquidation…and indeed also through bandwagon mania.
Innovations is always desirable in financial domain only a distinction is must between innovations like technological up gradation and complex derivatives because the ability to use derivatives to speculate, create off balance sheet positions, increase leverage, arbitrage regulatory and tax rules… and manufacture exotic risk cocktails will continue to a major factor in derivative activity.
Tectonic shift that we need in financial market should come as meticulously crafted process instead through push-button methods that would require clarity on the goal of financial sector reform. For the time being, it is quite essential to reduce the unintended consequences of financial meltdown like spiraling inflation and increase in western government’s debt & budget deficits.
Escalation of top-notch officials in American financial circle is not a right step forward instead; a utility-based pay scheme should be approached in banks and other financial institutions that would lessen the hassles from exchequer. Keynes came back in fashion…so government should ensure employment first; like NREGS (India) was implemented much before the downturn of economies.
Now it would be quite blissful for nations to appropriate fine mix of socialism and capitalism as it was conceived by the India’s first Prime Minister J.L Nehru for India’s planned development.
Also essentially we should carry on the teaching of our grand mothers on practical financial behaviors, so we become able to avoid gaining $613 billion dollar debt on iconic bank like Lehmen Brothers( Whom we commemorate our adieu presently) as policy makers. Ultimately quotation of Charles Dickens, (Literary protagonist of Great depression era, from his magnum opus work” Great Expectations”); that “we have every thing before us and we have nothing before us “…it’s up to us how we visualized the things.
Atul Kumar Thakur
22nd September2009, New Delhi
atul_mdb@rediffmail.com
Friday, September 18, 2009
Indian Model of Financial Services
It has become fashionable in this country to believe that anything to do with financial services has to be made in America without being aware about the ground realities. As the world commemorates the first anniversary of collapse of legendary Lehman Brothers, it would be vital to memorize that India was one of the few economies where banks and other financial services didn’t felt similar trouble; the cause were very simple that regulatory regime in India never shown leniency for unethical practices.
RBI has been consistently monitoring the situation since credit bubbles start in western and some leading Asian economies half decades ago; Indian central bank timely acknowledged the difficulties ahead and so never let allow banks to deal in exotic or toxic financial instruments. Credit delivery structure in India has stark differences from U.S.A or any other western economies; here in India banks follows well placed collateralized support for all commercial lending that minimize the risk of non performing assets.
There is utmost need to understand the Indian point of view to appropriate any functional change in financial system; context out rightly matters in any specific change in a system, like nationalization of banks in 1969 by the government was a prudent initiative from India’s own perspectives but quite astonishing from western point of view as they considered than it as a sheer humble effort of a languishing economy.
But now the landscape is entirely shift and leading policy makers from U.S.A, Vis Joseph Stiglitz, Henry Kaufman (Former board member, Lehman Brothers) necessitates on the better regulation and rationalization of the bank’s size. Indian economy being the second growing economies of the world should avail its edge of financial services which all is in well shape and naturally growing under the regulatory compliance's but still some policy makers in India couldn’t foresee the forward development in appropriate sense.
The Committee for Financial Sector Assessment, the high level RBI- Government of India’s joint assessment group came out with its conclusion that “Financial soundness indicators” like capital adequacy, asset quality and profitability of Indian banks were found in good state at the end of last year. As per the Basel Standards the Capital to Risk Weighted Asset Ratio (CRAR) of banks that’s a required amount to incurred unexpected looses should be maintain at minimum nine percent.
The CRAR for all Indian banks except two (One an old private bank and the other a foreign bank) stand substantially higher than the recommended minimum and also steadily improved over the years. Capital adequacy in the PSBs as group is itself stands above the norms; it was an average of 12.5 percent as of March2008.
In spite of witnessing such conducive fundamentals, officials in finance ministry is making exercise to flee to World Bank for merely three billion dollars loans to recapitalize the Public Sector Banks that seems quite shocking since there are several options are available within their own ambit.
Foreign exchange reserves must be a most reliable source for the government to fulfill its obligations; this way the banks would have recapitalized and they remained in government. China did same with such options even though their requirements were quite high from India, surely such options be less expensive and without any conditions.I again stressing on the potential imposition of conditions from World Bank following after such conceived materialization like, consolidation of banks, abrupt liberalization in their specified terms and conditions which may left many adverse repercussions.
Any major policy initiatives in India must be free from any external pressures because we can judge our requirements best in our conditions. In last two decades Indian financial sector has been witnessing a gradual and regulated liberalization which may remain bone of contention even in further time.
Consolidation is another matter that must be seen in the light of genuine perspectives; U.S.A’s biggest bank is tenth time bigger than India’s largest bank albeit that not guarantee the performances as we have witnessing sixty nine failures in American financial services till now and many more in future. We have many options to follow the Raghuram Rajan committee and Percy Mistry committee on financial sector reform rather than becoming entangled with external institutional pressures.Complexities could never be an ideal condition, so a comprehensive way would always be an imperative; we can come out with many innovations like adoption of consortium finances in place of unnatural consolidation and liberalization with ongoing regulatory norms. So, at the moment our hand is not tight only we have need to priorities the potential propositions.
Atul Kumar Thakur
17th September2009, New Delhi
atul_mdb@rediffmail.com
RBI has been consistently monitoring the situation since credit bubbles start in western and some leading Asian economies half decades ago; Indian central bank timely acknowledged the difficulties ahead and so never let allow banks to deal in exotic or toxic financial instruments. Credit delivery structure in India has stark differences from U.S.A or any other western economies; here in India banks follows well placed collateralized support for all commercial lending that minimize the risk of non performing assets.
There is utmost need to understand the Indian point of view to appropriate any functional change in financial system; context out rightly matters in any specific change in a system, like nationalization of banks in 1969 by the government was a prudent initiative from India’s own perspectives but quite astonishing from western point of view as they considered than it as a sheer humble effort of a languishing economy.
But now the landscape is entirely shift and leading policy makers from U.S.A, Vis Joseph Stiglitz, Henry Kaufman (Former board member, Lehman Brothers) necessitates on the better regulation and rationalization of the bank’s size. Indian economy being the second growing economies of the world should avail its edge of financial services which all is in well shape and naturally growing under the regulatory compliance's but still some policy makers in India couldn’t foresee the forward development in appropriate sense.
The Committee for Financial Sector Assessment, the high level RBI- Government of India’s joint assessment group came out with its conclusion that “Financial soundness indicators” like capital adequacy, asset quality and profitability of Indian banks were found in good state at the end of last year. As per the Basel Standards the Capital to Risk Weighted Asset Ratio (CRAR) of banks that’s a required amount to incurred unexpected looses should be maintain at minimum nine percent.
The CRAR for all Indian banks except two (One an old private bank and the other a foreign bank) stand substantially higher than the recommended minimum and also steadily improved over the years. Capital adequacy in the PSBs as group is itself stands above the norms; it was an average of 12.5 percent as of March2008.
In spite of witnessing such conducive fundamentals, officials in finance ministry is making exercise to flee to World Bank for merely three billion dollars loans to recapitalize the Public Sector Banks that seems quite shocking since there are several options are available within their own ambit.
Foreign exchange reserves must be a most reliable source for the government to fulfill its obligations; this way the banks would have recapitalized and they remained in government. China did same with such options even though their requirements were quite high from India, surely such options be less expensive and without any conditions.I again stressing on the potential imposition of conditions from World Bank following after such conceived materialization like, consolidation of banks, abrupt liberalization in their specified terms and conditions which may left many adverse repercussions.
Any major policy initiatives in India must be free from any external pressures because we can judge our requirements best in our conditions. In last two decades Indian financial sector has been witnessing a gradual and regulated liberalization which may remain bone of contention even in further time.
Consolidation is another matter that must be seen in the light of genuine perspectives; U.S.A’s biggest bank is tenth time bigger than India’s largest bank albeit that not guarantee the performances as we have witnessing sixty nine failures in American financial services till now and many more in future. We have many options to follow the Raghuram Rajan committee and Percy Mistry committee on financial sector reform rather than becoming entangled with external institutional pressures.Complexities could never be an ideal condition, so a comprehensive way would always be an imperative; we can come out with many innovations like adoption of consortium finances in place of unnatural consolidation and liberalization with ongoing regulatory norms. So, at the moment our hand is not tight only we have need to priorities the potential propositions.
Atul Kumar Thakur
17th September2009, New Delhi
atul_mdb@rediffmail.com
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