Monday, May 30, 2011

Festschrift to Dr. C.Rangarajan


Growth and Finance--Essays in honour of C.Rangarajan ; Edited by Sameer Kochhar ; Published by Academic Foundation ; Pages 351; Price Rs 1095/-
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The book under review is a festschrift in honour of Dr.C.Rangarajan There are 16 essays by 20 eminent authorities on banking,finance, management and public administration. In a preface the Home Minister Shri.P.Chidambaram writes ,"Today ,there is no one I know of who is more sought after, more often consulted, more dependable.more impartial,more neutral ,and more valuable in the advice he gives as far as economic policy matters are concerned than Dr. Rangarajan....I think it (this book) is a remarkable tribute not only to a very fine intellectual but also a very fine human being". A lot of what we take for granted today--for example ATMs, Credit Cards--are attributable to the financial reforms that Dr.Rangrajan broght about as Governor of R B I.
In a Foreword ,Dr.Manmohan Singh pays rich tribute to Dr Rangarajan. Dr.Rangarajan has taught at Wharton School of Finance and Commerce, Graduate School of Business Administration in New York and I I M Ahmedabad. He was Member of the Planning Commission, Deputy Governor and later Governor of Reserve Bank of India,Governor of Andhra Pradesh, Chairman of the Twelfth Finance Commission and is presently Chairman of the Prime Minister's Economic Advisory Council. We have a pithy assessment of Dr.Rangarajan by one of his successors Governor Subbarao,who has unarguably asserted--"Dr.Rangarajan.. straddled both academia and the government. What makes him unique though is the way he constructively blended what are two disparate worlds. He brought deep scholarship over a range of academic disciplines to bear on public policy...He remained deeply sensitive to real life concerns. It is this unique trait that has set him apart as one of today's most credible thinkers and advisers. Fittingly, a critic labelled him as "philosopher king"'
The sixteen essays in this volume are esentially a labour of love, affection and admiration for Dr. Rangarajan. The volume has a true head start with an unusual anecdotal history of the tumultuous times during 1982--1997 by Shri. S.S.Tarapore, who rightly mourns that in India anecdotal history is neglected as senior officials generally do not maintain personal diaries.He has presented a fascinating account of how battles were fought, policies were fashioned out after heated debates and recounts the genesis of crucial decisions made during that period.Subjects tackled included B O P crisis of 1990-91,Devaluation of Rupee,
J P C Committee.Tarapore brings out vividly how Dr.Rangarajan encouraged those working under him to articulate views diametrically opposed to his own view. According to Tarapore,"Generations to come will scarce believe that Plato's "Philosopher King" walked the corridors of the Reserve Bank in flesh and blood." One devoutly wishes that Shri.Tarapore writes the anecdotal history of the Reserve Bank during its first 75 years.
Dr.Subbarao, the Governor of R B I has analysed the ills that plague the banking system and how we should ensure that banking takes steps to evolve, grow and innovate in response to the developments in financial markets and institutions.Banking secotor in India has four challenges it has to meet head on--deepening financial inclusion, financing infrastructure, strengthening risk management and improving efficiency.Facing these challenges is sure to make banking exciting.
The essay by Kanagasabhapathy and Radhakrishnan focuses on the mainstream views on transparency and autonomy in the formulation and conduct of monetary policy, including those out of the IMF Code. It calls for exploring the possiblity of extending the management concept of 'Johari Window' to transparency in public policies with particular reference to monetary policy.
Joseph Massey emphasises the importance of financial services in developing growth, employment generation. capital allocation, savings, wealth distribution and risk management.Financial inclusion is the process of ensuring access to financial services and timely and adequate credit provision. The author has commended the efforts of RBI to increase financial literacy
Shyamala Gopinath pays tribute to Dr, Rangarajan, recalling her indebtedness to him.She recounts his role in steering the country out of the crisis of the early 1990s and laying down the foundation of the subsequent policy framework, which put the economy on a robust and reslient growth. Her essay on a macroprudential approach to regulation reveals that many ideas were originated by Dr,Rangarajan.
Other eminent writers are Y.V.Reddy, K.C.Chakrabarty, Ravi Narain, Kirit Parekh and others.Due to space constraints it is not possible to deal with all the essays in this volume but reading this volume will make amply clear the giant role by Dr.Rangarajan in several fields of Indian economy.The volume, which has been brought out by the Skoch Group is edited by Sameer Kochhar, the Chairman. He is the President of Skoch Development Foundation which is our country's leader as think-tank on social and financial matters. We owe a deep debt to Sammer Kochhar and Academic Foundation in bringing out this valuable festschrift by a number of authorities in several fields. No better tribute to Dr. Rangarajan is possible.The book is warmly commended to all economists, bankers, administrators, planners and students of economics and banking.
P.P.Ramachandran
29-05-2011

Tuesday, April 5, 2011

ICan Do Financial Planning

ICan Do Financial Planning by Swapna Mirashi ; Published by Academic Foundation ; Pages 143; Price Rs. 245/-

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Swapna Mirashi is a Financial Literacy Consultant and author of two books. She was a member of the Steering Committee of Financial Literacy of the Reserve Bank of India. She developed a comprehensive rural financial literacy manual for ICOCI Bank. She is regular contributor to financial journals. The book under review is a manual of financial planning. Financial planning is a process of planning and managing your current finances to meet your goals. Income, expenses, savings, assets and liabilities have to be so organized as to secure your aims— buying of a house, provide for education and wedding of your children and plan your retirement,

This is a well-organised step by step manual enriched with smart worksheets and checklists. It encourages you to design your own personal financial plan. Almost every page contains a box that highlights important concepts. The first step is to set clearly your goals—with a time-frame. If your start planning early in your career you have to set aside less money each month. A basic need is to assess clearly your financial position. It is advisable to have realistic goals commensurate with your assets and income. A cogent analysis of your financial needs is a must. Set reasonable goals and take firm steps to achieve them.

The next subject tackled is “Investment”. Seek out profitable avenues like provident fund, fixed deposits and ensure a good balance between growth and steady income. Acquire a thorough knowledge of avenues of investment. Arrive at an ideal portfolio. Due to inflation you have to invest in such a way that the value of your money is retained. A wise management cycle is to save regularly—invest wisely—spend intelligently and at the same time ensure your security. You have to master the process of investing, gauging risks and taking right decisions. There are various investment channels—some riddled with risks and some high-yielding. Study stocks and shares and available exemptions. You can arrange your investment portfolio and review periodically your holdings. Another crucial area is planning and managing your debts portfolio. You have to be aware of risks involved. Risk is the possibility of a loss or negative out come. Vulnerability to risks varies from individual to individual. You have to be aware of certain practices that inevitably lead to risk. This manual offers guidance on methods of managing and overcoming risks. Information is offered on briefly on regulators like RBI ,SEBI and those who regulate insurance market and pension fund market. It is safe and essential to build an emergency fund to combat risks, Different types of risks are analysed. The manual provides sample planning steps to achieve common financial goals. The volume has a valuable glossary, a tiny list of books ( why no books by India analysts are included is not clear ) and a number of useful websites.

The Governor of the Reserve Bank of India Dr.D.Subbarao, who contributes a “ Foreword ” rightly hails the book as “A rewarding learning experience.” Surely this manual is very valuable and offers easy-to-implement advice to wise financial planning. The Reserve Bank deserves warm praise for bringing out this book as part of its efforts to encourage financial literacy.

P.P.Ramachandran

Journey Og A Nation



-- Journey Of A Nation ; Published by Academic Foundation ; Pages 306 ; Price Rs 2995/-

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Shri.M.V.Kamath, in one ofhis recent reviews described the book as “unputdownable.”. The book under review is unarguably one such book. It records the 125 yearsof the Indian National Congress. Dr.Pattabhi Sitaramayya, the pioneer biographer of the Congress wrote perceptively “Great movements are like great rivers—they start as small streams, but if the cause is great, they draw to themselves many streams, joining together to achieve and reach their destination.” The Congress met for the first time with only seventy-two people in Bombay on 28th December, 1885. It went on to challenge the mightiest empire of the time, using the slogan of peace and the method of non-violence.

This volume is afascinating record of the struggle for freedom told in admirably precise fashion, rich in rare photographs and archival material of the highest value. What the reader gets is a bird’s eye-view of the tumultuousjourney of a nation. Production values are of the highest quality and Academic Foundation has walked an extra mile to make the journey a pleasure to behold. Special boxes in light colour give photographs and sketches of all Congress Presidents. Important documents and press notices are reproduced.

The book is divided into nine sections. The first section “The Formative Years—1885—1920” deals lucidly with the birth of a new party led by men and women of extraordinary courage, commitment culminating in India’s freedom . Covered are the impact of Dadabhai Naoroji’s “Poverty and Unbritish Rule”, the role of Gokhale, Tilak, the split inSurat, the Rowlatt Act and the Jallianwala Bagh massacre.

Section Two entitled “The Gandhian Era” relates to the period 1920-1935 We are privy to Gandhi’s struggles , the Simon Commission, the Round Table Conference, the Dandi March . The section also covers the ascent of Jawaharlal Nehru .

The next Section deals with the years 1935—1947. Important events analysed are the Government of India Act, the Congress Ministries, the emergence of Jinnah and the strident demand by the Muslims for creation of Pakistan, Cripps Mission, Quit India Movement, the Cabinet Mission, the Wavell and Mountbatten plans and finally Independence,

Section Four deals with the years 1947 to 1964 . The highlights are the tragic partition, the communal riots, the integration ofprincely states, the framing of our own Constitution. Nehru inaugurated an era of planning, built a chain oflaboratories, constructed a number of dams—which he called “The Temples of Modern India”. He made “Non-alignment” an acceptable philosophy.

The next Section analyses the Congress party’s role from 1964 to 1994. Nehru was succeeded by Lal Bahadur Shastri. India was embroiled in a war with Pakistan. Shastri died and was followed by Indira Gandhi who was Prime Minister for 15 years—in two terms. She nationalized 14 major banks, abolished privy purses. The 1971 war withPakistan transformed her into “Durga” and led to creation of Bangladesh. Followed the Shimla Agreement. Pokhran nuclear tests, She declared Emergency after a court order disqualified her, leading on to her defeat in the 1977 elections. The Janata government and the 1980 elections swept her back to power. “Operation Bluestar” led to her assassination.

The remaining Sections dwell on the Rajiv Gandhi era. He introduced computerization, brought peace to Punjab,Assam and Mizoram. The Bofors deal and internal party dissensions led to fresh general elections. Rajiv Gandhi was assassinated by the LTTE agents. The book recalls the advent of P.V.Narasimha Rao and economic reforms initiated by Manmohan Singh. The destruction of Babri Masjid caused turmoil in the country. Sonia Gandhi became Congress President. The BJP led NDA was in power from 1998—2004.The Godhra massacre followed by riots are dealt with. The coalition government led by Manmohan Singh followed. The last Section lays down the Agenda for the future which is “inclusive growth”. “This volume is both a remembrance of things past and acommemoration of the long journey the Indian National Congress has traveled.”

This is volume to cherish and read by all students, politicians of every hue and disciples of history. The book is a tour de’ force—an achievement and accomplishment.

P.P.Ramachandran.