Giri at 1130am on 06/March/2011
Hi. Trust you all had as much of an interesting week that went by as I did. Interesting it was indeed, as it unfolded a wide variety of news and views and action, in some instances inaction, umm...
First there was the Indian budget announcement in Parliament and the resulting drama of analysis and critiques played on television screens and newspapers. The annual budget announcement by the Government of India has become a ritual (perhaps a mini soap-opera) with most of the dramatis-personae (the Finance Minister and his colleagues from the North Block, the corporate honchos and their well-wishers from the leading Chambers of Commerce, the tax and accounting experts from the Big 3, the stock-market pundits and most importantly the lead anchors of the business channels and newspapers, throw-in a housewife at a petrol station to complete the cast!) appearing to read from scripts that would put a Bollywood producer to shame for their dullness, opaqueness, staleness and originality. Read Manas Chakravarty’s column Lose Cannon in the Hindustan Times for a witty take on the Budget FAQs. Two suggestions that I have encountered in this context are:
Has anyone really worked out the CBA of a complex and convoluted system of taxation and tax-administration in India (with its subsidies, discounts, exemptions and holidays,....) vis-a-vis a simple, standard and low-but uniform tax of say 15% on all income(corporate or individual, direct or indirect) exceeding (say) 20 times the minimum wages? Surely the increases in tax-administration efficiencies and the incentives for tax-compliance because of simplicity in tax-administration should make life simpler for everyone around. India, being a $1.3 trillion economy, this would mean annual tax revenues (assuming 75% collection efficiency and other discounting factors of input-output economics, but not factoring the wider net that is possible) of Rs.7,30,000 crores, a shade less than the gross tax revenues of Rs. 9, 33,000 crores currently collected, but as mentioned earlier the possibility of a wider net from simplified tax administration should bring in more entities and individuals under the tax bracket.
Is there a case for a continuous round-the-year media coverage or investigative journalism seen (analysis, expert-interviews and sting operations) of how tax revenues are actually spent on key priority areas such as healthcare, education, defence and infrastructure? Would this not increase TRPs for TV channels or NRS points for newspapers? Is this not more newsworthy than just letting the nation know about the government’s intention and the expert’s views on what the possible impact may be?
The second development that impacted my week was an outcome of a November 2010 speech that David Cameron, Britain’s Prime Minister made which focused a lot on managing Britain’s economy to perform better as it strives to come out of the global recession. In November, when the speech was carried forward by the British media, I was not so sure if indeed there was a powerful suggestion in the Prime Ministers’ speech on making East of London the next and perhaps a more vibrant Silicon Valley. What does this mean to the East of London that will soon carry a world-class legacy of the Olympic Games after 2012? Is Silicon Valley a concept that is irrelevant in today’s highly-connected and networked world? What aspects of the eco-system of California’s Silicon Valley can be replicated and what innovations are needed for any successful future Silicon Valley? The suggestion has indeed moved forward to the extent that a global technology task force (GTTF) has now been structured within UK Trade & Investment, and this taskforce is in the process of finalising global champions who can help steer the agenda. As one of the champions being nominated for India, I wonder if there has been more clarity in the strategy since November, and wonder if this will be one of the many taskforces and nothing more, or if it will be the basis for an innovative approach to trade and investment support for businesses that want to grow in and from the UK.
And finally, the news about yet another fire disaster in the heart of Mumbai, that rendered several hundred homeless and injured as many, including firemen (Slumdog Millionaire child actor Rubaina is reported to have lost her home, her photos of walking the red carpet in LA), strongly suggests that the Brihanmumbai Municipal Corporation (BMC), the Fire Services and local politicians, all value life of Mumbai citizens and property in the city at the least common denominator. How else would you explain that it is in the same area that there have been several lethal fires in the past, and yet these official organisations and individuals have not still not implemented a fire and loss prevention plan for this community. It is easy to claim sabotage as a reason, or claim that the community is at fault for living dangerously, but that does not stop the blame from moving up to the lawmakers, and law enforcers. This along with the increasing loss of life on Mumbai’s roads and train tracks makes me wonder if indeed there is a case for a community-based Value-Your-Life Initiative in this city!
I also tried to search on the net for what others have been saying and doing on the subject of the power of suggestion and was not very surprised to know that Google throws up over 233 million entries, while MSN Bing says that it can provide you access to over 33 million documents on the subject. I think there is a wealth of information to be mined in all these entries and documents. I intend to write a short note in my future blog entries on some of these entries which I find interesting.
And here is a list of other suggestions that I think merit some debate and action –
(a) would it not be a great idea for public utilities such as post offices, railway and bus terminal ticketing counters, tashildar offices, RTOs, chemists shops to hire unemployed youth and senior citizens at part-wages to man public counters at “closed-for-transaction” times (say lunchtimes, night hours), so that we have 24-hour public services and also partially-solve employment problems?
(b) Urban Indians need to be less rude to their neighbours and fellow-citizens? What will make us be patient with the elderly, infirm, less-powerful and influential.....? Do we instil an award for these and get media to recognize and extol such behaviour?
I am looking forward to the next week as it unwinds even more interesting experiences that will throw more of such wonderful suggestions. Please let me know what you think of my entries today. I promise I will try and include them in my next entry on the13th of March 2011.
Till then, cheers and best wishes for the week ahead.
Giri