Thursday, November 9, 2023

Four Videos in Hindi on -- Economy & unorganised sector, Indian Agriculture, Demonetisation & Politics

 1.    Video in Hindi on Issue of the state of the economy with reference to the unorganized sector. 


https://youtu.be/5HIOr7gW0RE?si=nYWf_dbgSmAazxej  
 
2.    Video in Hindi on the problems of Indian agriculture and Reforms needed.

https://youtu.be/rUeTt1IuF0U?si=FdPsOFHkpfNq4n6Z  
 
3.    Video in Hindi on Policy Induced Crisis - demonetization and GST. And, Is population a burden?

https://youtu.be/LFz9npG9ZVw?si=W26P83CgK0UPP3hP
 
4.    Video in Hindi on why Freebies are a result of loss of credibility of politicians and parties.

https://youtu.be/qAJjCJ2Bu8k?si=U7lbPD9VBKXjzFrX

TEDx talk on Truth and Facts | Arun Kumar


 

Wednesday, October 25, 2023

Links to articles, discussions and interviews by Arun Kumar from July to September 2023

 

links to select recent articles, discussions and interviews after three months.

 

1.     Challenges of becoming a developed economy by 1947. In the Leaflet Sept 17. It is at: https://theleaflet.in/technological-challenges-to-becoming-a-developed-country-by-2047/

 

2.     Interview on India’s economic performance. Channel 4 PM September 17. It is at:  https://youtu.be/j_ieEocgqzE

 

3.     Interview on G20 outcome failure and Indian Economy. It is at Jeevansathi.com Sept 15. It is at: https://youtu.be/Ms3ITm1ypdo?si=wSyXvWmshRDdWJ3I

 

4.     G20 serving the interest of the Global landlords. In the Wire Sept 14. It is at: https://thewire.in/world/g20s-new-delhi-declaration-serving-the-interest-of-the-global-landlords

 

5.     Talk on `Adani Scandal - PM silence’. Organized by SundarayyaVignana Kendram. Sept 5, 2023. It is at: https://fb.watch/nr_kCJTdKX/?mibextid=RUbZ1f

 

6.     GDP `discrepancies’ explained. Two articles

a. In News9live on Sept 3. It is at: https://www.news9live.com/opinion-blogs/decoding-the-significance-of-7-8-gdp-growth-for-indian-economy-expert-speaks-2270756

b. In the Wire on September 5. https://thewire.in/economy/understanding-gdp-growth-through-discrepancies-and-why-the-major-push-is-not-visible

 

7.     Discussion on likely further revelations on Adani affair. On HindiSatya.com. August 25, 2023. It is at: https://www.google.com/search?sca_esv=569887179&tbm=vid&q=Hindi+Satya.com+With+Mukesh+Kumar+on+Adani+affair&sa=X&ved=2ahUKEwjr9uPixtWBAxWjS2wGHdZcC9sQ8ccDegQIDRAH&biw=1024&bih=710&dpr=1.25#fpstate=ive&vld=cid:4bc75314,vid:r4NglZUPOB8,st:0

 

8.     Discussion on de-dollarization and the Emerging World Order with Air Marshal Matheswaran. Organized by the Peninsula Foundation. August 22, 2023. It is at: https://youtu.be/Fsrnh1QCyXM?si=K273Tfi74svjVZqQ

 

9.     The truth of the official claims: Data is incorrect. In the Wire on August 18, 2023. It is at: https://thewire.in/economy/the-hollowness-of-modi-governments-tall-claims-and-self-praise-on-economy

 

10.  What should G20 agenda should be from people’s perspective?. Talk at the Conference titled We20: People’s Summit on G20 in New Delhi. August 18. It is at: https://wgonifis.net/2023/08/18/economists-social-movements-political-leaders-give-clarion-call-to-stand-up-to-the-anti-people-policies-of-g20/

 

11.  In Hindi How can India become 3rd largest economy soon? In the Hindustan. August 17, 2023. It is at: https://www.livehindustan.com/blog/latest-blog/story-hindustan-opinion-column-17-august-2023-8583185.html

 

12.  Discussion on Hurdles to Becoming an Economic Superpower. Mint. August 16. It is at: https://www.youtube.com/live/YnF2N7FBORM?feature=share

 

13.  In Hindi. What is wrong with Economic Policies? Analysis of the PM’s Address on Independence Day. ABP, Uncut. August 15. It is at: https://youtu.be/cj_eMbD71T4

 

14.  In Hindi. Mood of the Nation: Economic Aspect. Public India August 12. It is at: (From 1 hour onward). https://www.youtube.com/watch?v=P2z7O4tjMOQ

 

15.  Panel discussion on release of Neerja’s book, `How Prime Minister’s Decide’. August 8. It is at: https://youtube.com/live/BgFG-cfmLUs?feature=share

 

16.  Reduction in Multi-dimensional Poverty in India: Is it for real? In the Leaflet, August 6, 2023. It is at: https://theleaflet.in/is-the-decline-in-multidimensional-poverty-in-india-real/

 

17.Minimum Guarantee Bill of Rajasthan Govt. – an Analysis. In the Wire, August 5, 2023. It is at: https://thewire.in/rights/rajasthan-minimum-guaranteed-income-bill-intent-marginalisation

 

18.  India for Democracy Conclave. Talk on economic inequality and other aspects. August 4. It is at: https://youtube.com/live/GyZxHbYrdmw?feature=share

 

19.  In Hindi. Why India will not the 3rd largest economy anytime soon. Article in the Print on the 28th July and interview in The Public on 27th July. It is at:

a.      https://youtu.be/yCDD2k6GTHg

b.     https://hindi.theprint.in/India/economist-rfuses-pm-modi-claims-that-india-will-become-3rd-economy-in-the-world-in-bjp-3rd-term/575018/

 

20.  Long article on ‘Intricacies of GST’ and why it has not fulfilled its promises. In Mainstream, July 29. It is at: http://www.mainstreamweekly.net/article13636.html

 

21.  Development gone rogue – Underlying causes of high floods in Delhi. In the Wire, July 20. It is at: https://thewire.in/environment/development-rogue-flood-delhi 

 

22.  Why 28% tax on Online Gaming is justified. At News9live, July 12. It is at: https://www.news9live.com/deep-dive/imposing-28-gst-on-online-gaming-will-not-lead-to-the-collapse-of-the-industry-expert-opines-2210136

 

23.  Interview on technology from US under the Indo-US Accord during PM’s visit. The Public on July 2, 2023. It is at: https://www.youtube.com/watch?v=ZXHVv-uPHsM

 

24.  Assessing Impact of Six Years of GST. In the Leaflet. July 1, 2023. It is at:

https://theleaflet.in/a-taxing-tale-assessing-the-impact-of-six-years-of-gst/

 

25.  Long Article: Modi Rule vs Nehru’s Era: Comparing the Incomparable. In Mainstream. July 1. It is at: http://www.mainstreamweekly.net/article13565.html

 

26.  How much employment needs to be generated in India? In the Hindu. June 29. It is at:https://www.thehindu.com/data/data-how-much-employment-generation-does-the-economy-need/article67030514.ece

 

27.  Asymmetric technology relation between India and US and what it tells about our R&D. In the Wire. June 28. It is at: https://thewire.in/tech/indias-weak-r-and-d-culture-behind-asymmetric-indo-us-deal.

 

28.  Brief talk on decoding current inflation.  At Lallantop. June 28. It is at: https://www.youtube.com/watch?v=vs8RhVOyF_4

 

29.  Interview on Rich Indians leaving India and Broader Issues at HW News. June 20. It is at: https://youtu.be//SutPv0MCCuQ

 

30.  Short Interview in Hindi on why rich Indians are leaving the Country in large numbers. In the Wire, June 17. It is at: https://youtu.be/CJPllYj8vtk

 

31.  Article on Why PLI scheme is sub-optimal. In the Wire. June 16, 2023. It is at: https://thewire.in/government/pli-scheme-subsidies-demand-shortage-jobs

 

32.  Panel discussion in Hindi on India’s federal structure being damaged. It is at News Time, June 16. At https://www.youtube.com/live/k9nisfsVw7Q?feature=share   

 

33.  Article in Hindi on strengthening Indo-US relations. Hindustan June 15, 2023. It is at: https://www.livehindustan.com/blog/latest-blog/story-hindustan-opinion-column-15-june-2023-8305724.html

Monday, January 30, 2023

Electoral bonds: No solution to illegal political funding | Arun Kumar (Jan 30, 2023, The Leaflet)

 The Leaflet

Electoral bonds: No solution to illegal political funding

How do donations via electoral bonds funded by legal or illegal money help curb undue influence on policy makers? Electoral bonds provide an additional of such funds.

—–

THE Union Government initiated the Electoral Bonds scheme, which was announced in the Union Budget 2017–18, on January 2, 2018. The aim was “to cleanse the system of political funding in the country”. While many other issues are also germane, the moot question is will this goal be achieved.

These are bearer bonds that private entities can buy from a designated bank (presently the State Bank of India) and donate them to a political party. They are supposedly an anonymous way of donating funds to political parties, since the identity of the donor is not disclosed. The bonds become available around the time of elections, presumably to provide ‘legitimate’ funds to political parties.

Data shows that most of the funds go to the ruling party and help them consolidate their hold over power.

Also read: So, which political parties are receiving electoral bonds? SBI won’t tell us. Whither political transparency?

The scheme

To maintain anonymity of donations, the income tax department cannot investigate the donations, the Election Commission cannot ask for their details, and the public will not know who is donating. The then Election Commission was not in favour of such non-transparency. The Reserve Bank of India did not approve of such a scheme. In fact, neither of the two were consulted prior to the announcement of the scheme. In the Parliament, the Finance Minister had mentioned that people wanted anonymity but when asked through the Right to Information Act who these people were, there was no response.

Given the opacity of the bonds (for the public), a quid pro quo is possible between the ruling party and the donor for favours bestowed. In effect, it can be a bribe in white.

While the public and the Election Commission cannot find out who is donating to whom, the party in power can access this information. The bank issuing the bonds has a record of the entity donating and the party encashing the bond. Given that the bank managements are largely under the control of the Union Ministry of Finance, the information can be accessed by the ruling party.

Further, given the opacity of the bonds (for the public), a quid pro quo is possible between the ruling party and the donor for favours bestowed. In effect, it can be a bribe in white. Since there will be no investigation, the donated money could be illegal.

Given these asymmetries and the opacity, public spirited entities went to court against the scheme in 2018. Since then, the matter has been sub judice. The Supreme Court, in its wisdom, has refused to grant an interim stay on the scheme.

Black money in elections

To fight Indian elections, whether for local bodies or state or national legislatures, much illegal funds are used. In a survey of 14 successful Parliamentarians in the 1998 Lok Sabha Elections, this author found that the average expenditure was eight times the allowed expenditure. This multiple has increased over time. The Parliamentarians interviewed added that the donors expected favours from them if they won.

Since any expenditure above the election expenditure limit is illegal, it has to be surreptitious. It cannot enter into the book of accounts, and has to be from illegal sources/black incomes. The Election Commission’s checking during elections has made little dent.

The quid pro quo results in subversion of policies and marginalisation of the common voters, who usually receive a bribe to vote for certain candidates. However, what the voters get at the time of elections is peanuts compared to their loss when policies are subverted against them. In contrast, the vested interests funding the candidates make a multiple of their illegal donation. It is the best investment for businesses since they get favourable policies, contracts, and protection from prosecution for wrong doing, among other things.

Clearly, the welfare of the nation and the common people requires freeing the politicians running the government from the influence of the black economy. How do donations via electoral bonds funded by legal or illegal money help curb undue influence on policy makers? The bonds provide an additional of such funds.

Why the bonds?

Can the use of Electoral Bonds serve the larger purpose of curbing black income generation in the country? A couple of lakh crore rupees are used in various elections in a five year cycle – about Rs. 40,000 crores per annum. Of the current Gross Domestic Product (GDP) of about Rs. 270 lakh crores, it comes to 0.15 per cent. The electoral bonds of a few thousand crore rupees issued annually are an even smaller percentage, both of the GDP and of the black economy. Since electoral bonds are only an addition, they cannot be the solution to the problem of use of black incomes in elections.

Election expenditures over and above the election limits have to be via illegal funds. The electoral bonds can neither be used to fill this need nor do they accrue to the individual candidates, so the need for illegal funds does not disappear.

Auditing of accounts of political parties can hardly stop the use of black incomes in elections. Companies’ accounts are audited, yet they generate black incomes through various means. Political parties also adopt the same devices to hide the actual sums surreptitiously received. Thus, even if the electoral bonds are based on legitimate funds, they cannot prevent the use of illegal funds raised by political parties.

Crucially, election expenditure limits are applied to the candidates and not political parties. The Electoral bonds can only be donated to political parties and not individual candidates. So, the individual candidate’s huge expenditures over and above the election expenditure limit has to be met through illegal funds. The winning candidates will have to continue to honour the quid pro quo and illegality will persist – bonds or no bonds.

Also read: Electoral Bonds: How compromised is our democracy

What makes Indian elections expensive?

The rich who donate substantial sums to politicians and parties do so in black since they do not want their name to be up front. They donate to all parties but don’t want the ruling party to know this. The political parties also do not want the public to know which businessmen are obliging them since in a poor country that could tarnish their image. Why do candidates need so much money to fight elections?

Electoral democracy has come to India when feudal consciousness persists. People vote for a variety of reasons, and not just on the basis of the candidate’s performance in the constituency. Often, people vote for candidates of their caste and community, however corrupt they may be. They expect this person to do their right or wrong work. Nowadays, work, whether right or wrong, requires pull. Often, bullies get elected because they can deliver. People say that they do not want to waste their vote, irrespective of the performance or the honesty of the candidates.

Seldom do NGO leaders who help people in myriad ways win elections. At times, candidates who do not even belong to a constituency win because of their equations within the constituency. Clearly, the public is looking for something other than performance when voting.

Candidates try to demonstrate to the people in their constituency that they have clout and can deliver. To show clout, big rallies, road shows, posters, cut-outs, flooding of social media, maintenance of vote banks, and so on are required. Cash and gifts are distributed just before Election Day. All these require a lot of funds.

Delhi Chief Minister Arvind Kejriwal has advised people to take gifts from political parties, but vote for his Aam Aadmi Party’s supposedly honest candidates, but this did not succeed because of the prevailing feudal consciousness: ‘namak khaya hai’.

Also read: Union government will continue with ‘conglomerate capitalist’ policies till electoral bonds scheme is struck down

Electoral bonds cannot achieve their ostensible goal

Indian elections have become expensive since feudal consciousness prevails in society and voting is seldom based on the performance of candidates. So, elections become expensive. Election expenditures over and above the election limits have to be via illegal funds. The electoral bonds can neither be used to fill this need nor do they accrue to the individual candidates, so the need for illegal funds does not disappear.

For political parties, the bonds give additional funds over and above what they collect illegally. Auditing of party accounts cannot help since that is only of the declared funds. Thus, the electoral bonds scheme cannot succeed in cleansing political funding.

Arun Kumar is a Retired Professor of Economics at the Jawaharlal Nehru University. He is the author of `Demonetization and Black Economy’ (2018, Penguin Random House). He blogs at http://arunkumarjnu.blogspot.com/

 

 

Sunday, June 11, 2017

  1.        Article in the Hindu on the Income Tax notices issued to 18 lakh entities and why those deposits may not be black. http://www.thehindu.com/opinion/op-ed/painting-it-all-black/article17834428.ece

  1.  Interview published in the Pioneer on Black Economy in India: file:///C:/Users/Dr.%20Arun%20Kumar/Downloads/23ag05.pdf

  1.  Interview on black economy, globalization and Indian economy in Newslaundry: https://www.newslaundry.com/2017/03/18/nl-interviews-arun-kumar-on-indias-black-economy-and-black-money-blurb-abhinandan-sekhri-speaks-to-the-economist-to-figure-out-black-from-white

  1. Analyzing the 6 months of Demonetization; the economy sputtering while a political dividend has accrued. In the Wire: https://thewire.in/136455/demonetisaion-economy-political-dividend/


  1. Analyzing Arvind Subramanian’s statement of on why experts are sycophantic and that makes for poor policy making. In Catch News: http://www.catchnews.com/india-news/policy-making-and-autonomous-intellectuals-who-wants-genuine-debates-63127.html
6. Article in the Indian Express suggests that the methodology that works in normal times is not applicable when the economy has suffered a shock. So, why is government still talking of 7% rate of growth http://indianexpress.com/article/opinion/columns/unusual-times-usual-ways-demonetisation-gdp-growth-economy-employment-4560881/

7. Article in the DNA explains the link of black money and elections in India and why voters do not seem to care about it. http://www.dnaindia.com/analysis/column-politicians-voters-and-the-doublespeak-on-black-money-2334012

8.  A more detailed article analyzing the budget than the previous one. It appeared in the Mainstream a few days back.
 It analyses why the assumptions underlying the budget arithmetic are incorrect so that the revenue projections are likely to go wrong.
Also why more should have been done to take care of the developing crisis due to demonetization.

9. Budget article in Firstpost.

 10. Wire Article on analysis of the Economic Survey

11.  Scroll.in article on the rupture between reality and government data.

12. Firstpost article on pre-budget expectations
http://www.firstpost.com/business/budget-during-the-times-of-demonetisation-fm-has-a-tough-task-to-rejuvenate-the-slowing-economy-3217790.html

13. Article in the Citizen analysing the impact of demonetization on banks and pointing out that recessionary conditions are beginning to take hold.

14. Article from The Scroll points out that the government is trying to claim success by shifting goal posts but not succeeding. It is at: http://scroll.in/article/824129/demonetisation-shifting-goalposts-to-show-success-has-kept-focus-away-from-real-issues

15. A Hindi booklet of about 60 pages in question answer form regarding flight of capital, tax havens, etc. which we had produced last year. The link is at: http://bit.ly/2ho2gla

16. Article on measuring the size of the black economy in India in Economic and Political Weekly.
I have tried a different way of estimating the size of the black economy.
This piece was written much before demonetization was announced.


17. An article based on an interview in India Legal. It is a general take on demonetization – what is wrong with it and why it would not work but cause a lot of pain to the poor, etc.. http://www.indialegallive.com/commercial/special-story/demonetization-will-adversely-impact-97-percent-indians-15912

18. An article in the Wire looks at why cash does not mean black and why cashless economy would not lead to less of the black economy, etc. Its link is: http://thewire.in/83480/choking-money-supply-not-the-way-to-tackle-black-economy/ .

Here are two early articles on demonetization published within days of the announcement.


Wednesday, February 18, 2015

A social role for NITI Aayog

A social role for NITI Aayog
The Hindu, 17 January, 2015
Arun Kumar, CESP, SSS, JNU.

The NITI Aayog could throw light on long-term issues, with solutions that are not just economic or technological but also social and political — of strengthening democracy, building institutions and regaining policy space

NITI Aayog has had its first meeting with the economic experts. This was crucial since the government is trying to revive economic growth. The economy has experienced slow growth in spite of the revised national income data that has indicated faster growth. Industry, exports and so on, have shown tepid growth in recent years. The National Democratic Alliance’s electoral promise of an economic turnaround seems elusive in spite of its accelerating “reforms” by liberalising foreign direct investment (FDI) flows and land acquisition policies to signal its pro-corporate sector and big business inclinations.
Contradictory views
The budget is first a macroeconomic exercise and then a micro one catering to sectors of the economy. Two contradictory macroeconomic views are emerging from the government and its policy advisers. This is similar to the policy dilemma that the United Progressive Alliance faced earlier. The first view is to have a larger fiscal deficit so as to boost demand. The other view is to cut the fiscal deficit to keep the credit rating agencies (proxy for financial interests) happy so as to prevent a downgrade of the economy.
The Finance Minister favours the latter view and argues that a fiscal deficit imposes a burden on future generations who will have to repay the debt. This conservative view assumes that resources are constrained, so if the government spends more, the private sector has less to spend. But that cannot be true when the economy has spare capacity and can produce more. Increased government expenditures then boost the economy and lead to more investments via the accelerator. If increased spending is financed by increased direct taxation, that is even better. This is feasible in India since direct taxes are around 7 per cent of GDP which is low when compared to most other countries. But a government trying to signal its pro-business inclination would not wish to raise direct taxes like income, corporation and wealth taxes. 
Actually, tax rates need not be raised but only the concessions given in taxes (these are called tax expenditures and amount to 4.5 per cent of GDP) need to be curtailed to get more resources. But this may also be seen as anti-business. The other possibility is to tap the black economy (more than 50 per cent of GDP, according to me.) This requires political will which is not yet visible. The business community, the largest generator of black incomes, would see this also as anti business — it has been opposing introduction of general anti avoidance rules (GAAR). Even if the economy grows faster due to the reduction of the size of the black economy and businessmen gain, they fear it since a bird in the hand is worth two in the bush.
The NITI Aayog meeting does not seem to have considered these deeper issues. Advice was sought from former bureaucrats, journalists, industry lobbyists and academics. Media reports suggest a lack of coherence in the discussion or in the advice given. Some of the invitees had been present in the Finance Ministry pre-budget meeting last month. So, what was the point of the meeting now when it did not lead to clarity on long-term issues? Further, the time for incorporation of policies in the budget is over since most of it would have been formulated by now. It may have been better to circulate for comments a discussion paper on the Indian economy’s slowdown and its global interlinkages.
Dilemma with global echoes
India’s current economic dilemma has global roots. The eurozone, Japan and Russia are in trouble, the Chinese economy has slowed down and the U.S. economy is the only big one that has improved. In such a scenario, increasing exports in a big way would be difficult. Declining commodity prices (like that of petroleum goods) signal a weakening global economy. Uncertainty is deepened by the arc of instability due to failing states, from Afghanistan, Syria, Iraq, Libya, Nigeria to East Africa. The war in Ukraine and the rise of IS are compounding the problem.
Greece threatens the economic stability of the eurozone. The new government there is defying the dictates from the world of finance and has promised to end the austerity regime hoisted on the people of Greece. The Greek Prime Minister is telling the European powers that the economic rules of integration of the weaker economies of Europe into the eurozone need change. He is arguing that a substantial portion of the debt resulting from the earlier wrong policies needs to be written off. The other troubled economies of Europe — Portugal, Spain and Italy — are under increasing political pressure to follow Greece’s example.
U.S. President Barack Obama has proposed increasing taxation of the rich while giving more to the middle classes to reverse the growing inequity there. This move not only has a political strategy underlying it but also economic reasons that favour it. Given the Republican domination in the legislature and their conservative inclinations, it is unlikely that this proposal would be accepted any time soon. But, other countries would be forced to think about the idea, especially in the context of the developments in Greece.
In 2011, Mr. Warren Buffett gave a call to tax the rich more not only for the sake of equity but also to tackle the global economic crisis. This call was picked up in Europe with 16 of the wealthiest French urging their government to tax them more. Fifty wealthy Germans backed this petition. In Italy, the chief of Ferrari also lent support.
Inequity has grown in most countries since the mid-1970s following the domination of global financial capital over policies — spearheaded by the World Bank and the International Monetary Fund (IMF). These policies have not only marginalised other sectors of the economy but also promoted bubble economies that are prone to periodic collapse as it happened beginning 2007 and from which the world economy has yet to fully recover.
These policies promoted shadow banking and all manner of opaque financial instruments that created economic instability. A casino economy emerged with speculation leading to a fictitious boost in paper wealth, promoting a false sense of well-being among individuals and increased consumption by them. As inequality increased dramatically, and there was the marginalisation of the vast majority, there followed the “Occupy Wall Street movement”, termed as the “99% v the 1%” and which also popularised the term, “Main street versus Wall street”.
For people policies
Events in Greece and Mr. Obama’s suggestion suggest that the time has come to end the domination of finance capital over the rest of society. Policy space has to be recaptured from the world of finance by the democratic forces so that policies favouring the people can be initiated.
The dilemma currently facing Indian policymakers reflects these global trends. India’s rightward drift started with the Emergency in 1975 when Sanjay Gandhi marginalised the left of Centre thinking in the Indira Gandhi government. The trend continued during the Janata regime and thereafter under the Indira Gandhi government which had to approach the IMF for adjustment in 1980. Rajiv Gandhi, under considerable influence of the liberalisers, pushed this tendency faster. With the New Economic Policies in 1991 and the emergence of the World Trade Organization (WTO) in 1995, there was a paradigm change, with the policies of finance capital becoming entrenched.
For India, which remains very poor and very unequal, policies based on the interest of finance capital and a narrow section of society can only spell disaster. These policies push markets and technology-based solutions which marginalise the individual. The underlying idea is that if making democracy work is difficult, substitute it with technology. Those lacking faith in democracy and social institutions are (in the name of the poor) pushing an autocratic agenda based on greater use of technology. The hard work of creating and nurturing institutions that can deliver to the people and strengthen democracy is sought to be circumvented. So, one of the key proposals today is to push Goods and Services Tax (GST) even if it does not suit the needs of the vast unorganised sectors of our economy and benefits the MNCs and big business. The hard work of making taxation simple and effective and shifting to direct taxes is hardly on the agenda. Creating a large number of jobs is secondary to cash transfers, bullet trains for the elite and smart cities for the upwardly mobile.
The flyovers of Delhi were built to ensure smooth traffic flow but now have speed bumps to slow down vehicles and which leads to jams. The technological solution failed because the institutional design of management of urban traffic is flawed and that is because policymakers did not go deeper into the problem in their urge to provide quick fix technological solutions. The NITI Aayog could throw light on such long-term issues (with solutions that are not just economic or technological but also social and political) of strengthening democracy, building institutions, regaining policy space and so on.
arunkumar1000@hotmail.com

Friday, January 9, 2015

When accountability is not institutional

When accountability is not institutional
The Hindu, Updated: January 8, 2015
Arun Kumar, CESP, SSS, JNU

Higher education in India suffers from a lack of a democratic leadership that understands its true nature. For those heading academic institutions, accountability is personal and not institutional or societal. The erosion of autonomy and accountability in centres of education is the biggest challenge an aspirational and rising India faces
The Director of the Indian Institute of Technology (IIT), Delhi, has resigned because he was sought to be marginalised by the Ministry of Human Resource Development (HRD). The faculty and alumni of IIT have come out in his support but the issue festers. Unfortunately, this has little to do with the real problem facing IITs — a lack of adequate faculty and little cutting-edge research. Even before the indiscriminate expansion of the IITs began, these institutes faced a shortage of faculty; at times to the extent of 40 per cent. The IITs face a reverse filtration of talent. The best obtain a B.Tech degree and either leave for foreign shores or move on to study management. The second best continue pursuing higher degrees which in turn leads to a weak research programme. Like IIT Delhi, other institutions of higher education in the capital have also been in the throes of crisis.
The country’s best university, Delhi University, has been in a state of turmoil for several years. Its vice-chancellor, who has been responsible for this continues in spite of accusations of wrongdoing. His presence is demoralising for academic staff and the student community. Since a university is not about its buildings but crucially its students and faculty, their alienation damages the institution irreparably.
The Indira Gandhi National Open University (IGNOU) faces a crisis because the earlier vice-chancellor recklessly expanded its scope. While this provides a false sense of dynamism, for an institution of higher learning, this spells trouble since it is almost next to impossible to get good faculty in a short period of time. Dependence on outside experts for courses is problematic since they do not bear primary responsibility. The vice-chancellor, accused of wrongdoing, is under investigation.
Autonomy being eroded

These are not isolated institutional problems. They are generic in nature and can be found to exist in different degrees in almost all institutions. What plagues Delhi University once prevailed at Jamia Millia Islamia and Aligarh Muslim University. A shortage of faculty and the use of ad hoc teachers affects almost all universities. The key problems confronting higher education in India are quality, equity, access and financing. In the last 10 years, there has been a massive ad hoc expansion of Central Universities, IITs and Indian Institutes of Management resulting in a shortage of faculty by 40 to 50 per cent. Established older institutions are doing a bit better but not much since about 33 per cent of the positions at Delhi University and JNU lie vacant. Shortage by itself does not reflect the extent of the problem since quality of faculty is crucial. Appointment of ad hoc teachers at salaries close to minimum wages and for years at a stretch is demoralising and results in a deterioration in quality. Our education system is plagued by the separation of teaching and research. Knowledge is largely acquired through rote learning of notes or reading books that are a “cut-and-paste job”. Thus, understanding is at a discount. Consequently, many Indian intellectuals tend to be “derived intellectuals”, recycling knowledge from the West. Exams are mechanically passed by “mugging up” material which is then promptly forgotten. Knowledge is neither assimilated nor converted into wisdom. The result is that the system largely produces people with indifferent quality and where industry complains of a lack of skills.


The highest National Assessment and Accreditation Council (NAAC)-rated university, Jawaharlal Nehru University (JNU), faces declining standards of research. The university, whose raison d’ĂȘtre was research, confronts growing instances of plagiarism because those in authority brush it under the carpet. The problem is being dealt with mechanically by providing software. Instead, the real problem is the breakdown in trust between student and teacher. Many students have little time to spend on their dissertation since they are working elsewhere and/or preparing for competitive examinations.
Some faculty in order to be popular dilute standards and supervise three or four times the number of research students prescribed under University Grants Commission (UGC) norms. There are others who run non-governmental organisations and institutions outside JNU. The result is a conflict of interest and where academics with little time for research supervision allow anything to pass. There is a lack of leadership at JNU but this is true of other institutions also where decisions are not made on time.
“The claim that India has arrived on the world stage rings hollow without an independent technology base”
All this is symptomatic of a lack of a vision of higher education in the entire system — from the Ministry to the UGC to the institutions of higher learning. The Ministry and the UGC expect their diktat to run, little realising that their demands from these institutions may not suit all. “One size fits all” and “standardisation to achieve standards” is anathema to higher education. Such prescriptions damage the better institutions as has been the case with the introduction of the mechanical Academic Performance Indicator (API)-based recruitment and promotions. Rather than ensuring quality, this move has led to the emergence of poor quality journals, conferences and so on and the promotion of mediocrity. It is undermining the autonomy of academics which is crucial in fostering accountability to the long-term interest of society.
The HRD Minister’s conclave with the vice-chancellors of the Central Universities in September suggested fundamental changes in the running of these universities. Since the Central Universities are some of the premier universities in the country, what they do becomes the model for other universities. Therefore, it is important to know whether what was discussed would help resolve the problems of these universities. The same vice-chancellors who created the problems described earlier are now heading the committees working on the proposed changes.
Apparently, a council of the vice-chancellors of the Central Universities, with the Minister of HRD heading it, has been proposed. In addition, all the Central Universities are to be brought under a common Act, there is to be a common curriculum, a teacher’s recruitment board, transferability of students among these universities and so on. If any of this is implemented, the autonomy of Central Universities will be severely eroded. This was the programme of the United Progressive Alliance government and is perhaps being pursued because the bureaucrats of the Ministry are driving the agenda.
Key problems
Good faculty are reluctant to join newer institutions as they lack infrastructure and because many of them are in remote areas. Transferability of teachers across Central Universities can only spread good academics thin and lead to a deterioration of quality in established universities. In an authoritarian system, this can be used to punish teachers by posting them to remote areas, thus undermining autonomy and leading to sycophancy.
When transferred to weak institutions, good academics could become demoralised. Sending weak academics to good institutions may not lead to their betterment but could result in a deterioration of quality in these institutions. Good students would not transfer to weak institutions but poor quality students would want to migrate to good institutions and this could lead to corruption.
Teaching and research
Independent intellectuals are seen as being troublemakers and are harassed. Mediocre academics, realising that they cannot excel academically, resort to petty politicking and/or become sycophants of those in power in order to climb the ladder. Those at the top take the support of the latter group and adopt the principle, “show me the face I show you the rule” It is this group that violates rules secure in the knowledge that the authorities will not act against them. They bring a bad name to higher education and erode the accountability of the institution.
The government has announced a slew of programmes like ‘Make in India’ which depends heavily on a strong research and development capability which in turn requires a dynamic system of higher education. The claim that India has arrived on the world stage rings hollow without an independent technology base. It is no wonder then that we are forced to borrow technology from China for bullet trains or ask the U.S. to help clean our cities. The ‘Swachh Bharat’, ‘Clean Ganga’ and other such campaigns require citizenship which a democratic and inclusive education system can deliver but a purely formal education system cannot. Unless the crisis in higher education is tackled, the government’s best laid plans can be derailed.
In brief, higher education in India suffers from a lack of a democratic leadership that understands its true nature. Those heading these institutions are usually the favourites of those in power (political or money). They largely implement the agenda of their masters and, therefore, do not feel the need to be accountable to the academic community. To them, accountability is personal and not institutional or societal. They undermine the autonomy of the democratic bodies of universities, like the academic council through threats and inducements. Some institutions have no unions that can balance the autocratic behaviour of their heads. Thus, the erosion of the autonomy and accountability in institutions of higher learning is both from within and without. This is the biggest challenge before an India that aspires to arrive on the world stage.
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