Dr. Kalam: An idea, a vision and a dream

I write this obituary from the C-130 Air force plane with Dr. Kalam’s mortal remains a few feet behind me to be taken to Rameshwaram. He is draped in the national flag, the tricolor he served and deserves. He was the hero of my generation – I remember how I used to be glued to his Presidential address just as I was finishing school. He was an ocean of experience, ideas and motivation and to capture his personality and contributions in a few hundred words is a near impossible task. But as Dr. Kalam always said, “don’t stop trying” so here goes my attempt.

Srijan Pal Singh

“Funny guy! Are you smashing?” This is what I would hear from Dr. Kalam at every single dinner or lunch we had together. “Smashing” was the typical “Kalam call-sign” for asking whether the food was good. “Funny guy” was of course a more complicated expression, which could mean a whole variety of things. Depending on the tone in which it was said, it could mean good, not good, embarrassing or simply a casual reference. If you were working with Dr. Kalam, being able to decipher his usage of the word “funny” was almost a mandatory art to know which could be learnt only through experience. It took me a good one year to figure it out! Funny!

Dr. Kalam was a teacher, mentor, guide, co-author, friend, boss from whom I received care like a mother and concern like a father. I had the great fortune of working with him closely, travelling with him so frequently for over six years, till the point he left us all. He was infectiously optimistic, to him there was never an end. He never really watched TV, but still was a cricket fan – asking me scores on matches when we travelled between functions. His favorite cricketers were Dhoni and Sachin. I remember if I told him India was not doing well in a particular match, he would reply, “Watch! Our captain will come and do something unique.”

Uniqueness was so common to him. He had a voracious appetite for knowledge. The library and reading room occupying half of his 10 Rajaji Road House would be spilling books into bedroom and sometimes right upto the garden. He never departed on a journey without carrying a couple of books in his hand baggage. On the very last day of life, I remember lifting his hand baggage – it was heavy. I said, “Sir! Your bag is getting heavier!” He replied, “That is because I am reading more!”

To me the line which separated Dr. Kalam from the rest was not just his knowledge. It was his sensitivity and humility. He always introduced everybody as friend — whether it be his secretaries, his driver, his gardener, his cook or the people who maintained his house or even a stranger he just met. To him the world was truly flat, and there was no place for hierarchies and ranks in his life. I have had lunch and dinner with him at least 2000 times – often being the second to come to the table. Not once did he start eating on his own, not once did he miss asking whether I was liking the food.

He had the gift of empathy – and his memory of other people’s difficulties was impeccable. That was his art of winning over people. If he saw anyone with even with a small cold on a day he would offer you medicine or hot soup. The next day his first words would be – “Are you repaired?” No matter what you replied, his reaction would be, “Funny fellow you are!”

Dr. Kalam’s greatest faith was the nation and its youth. Even in the final two hours of his life, we discussed on terrorism as a threat to sustainability and the issue of Parliament becoming dysfunctional – two recent pieces of news which had pained him the most. He trusted the youth, particularly his students, to come up with a solution for these issues. He was an eternal believer in the power of the ignited mind of the youth – which he termed as most powerful, on the earth, above the earth and under the earth.

What next? We are bereft of Dr. Kalam as a physical form but we are still blessed with Dr. Kalam as an idea, a vision and a dream. His thoughts and missions about empowering rural areas, about clean energy, about value based education, about creativity, innovation and integrity are still flying high.

When I was his student in 2008 at IIMA, he told me in an after-class conversation, “If you are blessed with intelligence, and empowered with education – it is your responsibility to change the world”. That statement changed my life. He often said, “my dream is to see a billion smiles on billion faces”. Let us give our eternally optimistic, grand old friend, inspiration, mentor and beloved People’s President of the nation a reason to smile, wherever he is now. Salute you Kalam sir!

Srijan Pal Singh was an advisor to Dr. A.P.J. Abdul Kalam.

reduction in role of RBI

At first glance, the revised draft of the Indian Financial Code released last week, 853 days after the Financial Sector Legislative Reforms Commission (FSLRC) published the first draft, seems to be a balancing act.
It has recommended substantial dilution of the powers of the proposed Financial Sector Appellate Tribunal (FSAT). This will replace the existing Securities Appellate Tribunal and entertain appeals against all financial sector regulators, including the Reserve Bank of India (RBI), but won’t have the powers to set aside any regulations which the first draft had envisaged. This is good news for the Indian central bank, but the not-so-good news is the composition of the monetary policy committee or MPC that it has proposed.
The latest draft gives the Union government the right to appoint four out of seven MPC members. It also takes away the veto power of the RBI governor even as he will have a casting vote in the event of a tie in the MPC (which can happen if one member is absent at the meeting).
A January 2014 report on revising and strengthening the monetary policy framework by RBI deputy governor Urjit Patel had recommended a five-member MPC with the governor as the chairman, the deputy governor in charge of monetary policy as vice-chairman, and the executive director in charge of monetary policy as a member. Even the two other external members, according to the Urjit Patel report, should be picked up by the chairman and vice-chairman on the basis of their expertise and experience in monetary economics, macroeconomics, central banking, financial markets and public finance. Overly tilted in favour of RBI, this report also suggested that the governor and, in his absence the deputy governor, will have a casting vote in case of a tie, but it was not in favour of the governor enjoying the veto power.
The idea of the veto power of the governor was mooted by the original report of the FSLRC which had spoken about a seven-member MPC, chaired by the RBI governor. While one member will be from the RBI, five independent experts in the field of monetary economics and finance will be appointed by the Union government, it had suggested. Of the five, the appointment of two members will be in consultation with the governor. It had also said that a representative of the central government, without having any voting rights, would participate in the MPC meetings to express the views of the finance ministry. The revised draft has changed the representation of RBI: government ratio in the MPC from 2:5 to 3:4 but dropped the proposed veto power of the governor.
This has sparked off a debate on the government maiming RBI and enjoying a greater say in the making of India’s monetary policy. The fear is politicization of the process as the members chosen by the government are expected to toe the government line, which often has short-term views on growth and inflation.
Let’s take a look at how the central banks in the developed markets work on monetary policy. In the US, the Federal Open Market Committee or FOMC decides on the Fed funds rate. Indeed, its seven board members are appointed by the president but their appointments are ratified by the Senate. And, there are instances of the Senate rejecting the president’s nominee. For instance, in August 2010, the US Senate scrapped the nomination of MIT professor and an expert on taxes and social security, Peter Diamond, to the Federal Reserve Board. There are five more FOMC members who are regional reserve bank heads, taking the total number to 12, each having one vote. The Bank of England’s monetary policy committee has nine members, including the governor, three deputy governors and the chief economist of the central bank. UK’s chancellor appoints the rest, who are independent. A member of the Treasury is allowed to attend the meetings and join the debate but doesn’t have a vote. The European Central Bank has a larger committee to decide on interest rates, consisting of six executive council members with permanent voting rights and 19 representatives from member states.
The fight between the finance ministry and RBI on the central bank’s so-called autonomy is not new. Rajan’s predecessors D. Subbarao and Y.V. Reddy had pitched battles during their tenures. While Reddy’s run-ins with the finance ministry were more on specific issues, Subbarao fought over broader policy issues. Many believe that RBI lost the battle for autonomy to the ministry of finance when Parliament passed the regulatory dispute resolution bill, paving the path for the creation of the Financial Stability and Development Council. Ahead of that, an 18 June 2010 ordinance empowered the finance ministry to resolve all disputes between the regulators, prompting then governor Subbarao to write to the finance minister, saying “the appearance of autonomy is as important as the actual autonomy itself”, and “the very existence of a joint committee (the council) will sow seeds of doubt in public mind about the independence of regulators”. The governor urged Pranab Mukherjee, then finance minister, to “allow the ordinance to lapse” but Mukherjee did not oblige him.
Even if the government enjoys the power of appointing four of the seven members of the MPC and the RBI governor does not enjoy the veto power, there’s nothing to worry about as long as the credentials of the members are impeccable and they are not serving government officials. Since the minutes of the MPC meeting will be made public, the government will be exposed if it plans to push its agenda through its nominees. Also, not the governor alone but the entire MPC will be held accountable if the inflation target is missed. This means everybody will have a stake and credibility to defend. The new set-up will not dent RBI’s autonomy, but even before it is put in place, the finance ministry should stop expressing its opinion on interest rates.

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Sanjeev Chaturvedi, Anshu Gupta win Ramon #MagsaysayAward

Sanjeev Chaturvedi, Anshu Gupta win Ramon Magsaysay Award

Kommaly Chanthavong from Laos, Ligaya Fernando-Amilbangsa from the Philippines and Kyaw Thu from Myanmar are the other recipients.

Whistleblower bureaucrat Sanjeev Chaturvedi and human rights activist Anshu Gupta are among five persons from India, Laos, Myanmar, and the Philippines who will receive Asia’s coveted Ramon Magsaysay Award.

In a statement issued early on Wednesday morning, the Board of Trustees of the Ramon Magsaysay Award Foundation (RMAF) announced five awardees.

"Thank you; this is a great honour. I'm speechless; it seems honesty and one's struggle for justice don't go unnoticed," Mr. Chaturvedi told The Hindu confirming the development.

The 2002-batch Indian Forest Service officer, who is currently embattled in a protracted battle with the Centre over alleged harassment for his tough stance on graft, was the former Chief Vigilance Officer (CVO) at the AIIMS in New Delhi.

According to the foundation, Mr. Chaturvedi has been awarded for “his exemplary integrity, courage and tenacity in uncompromisingly exposing and painstakingly investigating corruption in public office, and his resolute crafting of program and system improvements to ensure that government honorably serves the people of India.”

'Recognition for cloth as a charitable product'

Anshu Gupta, the founder of NGO Goonj, the statement said, is being recognised for “his creative vision in transforming the culture of giving in India, his enterprising leadership in treating cloth as a sustainable development resource for the poor, and in reminding the world that true giving always respects and preserves human dignity.”

Mr. Gupta, who left his corporate job to start the non profit organisation Goonj in the year 1999, is an elated man today.

Talking to The Hindu, Mr. Gupta said: “It’s definitely a great recognition for me and my team. It has been a beautiful journey working for Goonj. I am happy that we have been able to change many lives in the course of time.”

“Now I feel that what we are trying to do is going in the right direction. I feel that finally cloth has been recognised as a charitable product,” he added.

On being asked about his future ventures after this he said: “We will just continue to do the kind of work that we are doing. I don’t think there will be any change in the way me or my team operates. People might start looking at us in a different way but that’s a separate thing.”

Goonj is a non-governmental organisation based in Delhi, which works in 21 states across India in disaster relief, humanitarian aid and community development. It has converted 1,000 tonnes of used clothes, household goods and other urban discards into usable resources for the poor.

“I never worked on target, I tried to utilise the maximum potential,” Mr. Gupta said.

Other awardees

The other awardees are Kommaly Chanthavong, from Laos who is being recognised for her efforts to develop the ancient Laotian art of silk weaving, Ligaya Fernando-Amilbangsa from the Philippines for “her single-minded crusade in preserving the endangered artistic heritage of southern Philippines".

Kyaw Thu from Myanmar, the statement said, was being recognised for “his generous compassion in addressing the fundamental needs of both the living and the dead in Myanmar — regardless of their class or religion — and his channeling personal fame and privilege to mobilize many others toward serving the greater social good.”

This year’s Magsaysay Award winners will each receive a certificate, a medallion bearing the likeness of the late President, and a cash prize to be conferred upon them during a formal Presentation Ceremony to be held on August 31 2015 at the Cultural Center of the Philippines in the Capital.

igniting minds

In the passing away of former President A.P.J. Abdul Kalam, India has lost not only a visionary scientist and an institution-builder, but also a staunch nationalist who was an inspirational figure for people across generations. Turning India into a developed country of the first world was his dream, and he set about making this a reality through words and deeds, first as scientist, then as the President, and later, till the very end, as an ordinary citizen. Kalam began as a civilian rocket engineer and metamorphosed into a missile technologist, but it is as the “people’s president”, as the first citizen who was accessible and who stopped to listen to the grievances of ordinary men and women that he won the love and affection of his countrymen. In the fields of civilian space and military missile technologies, Kalam put India on the world map by laying strong indigenous foundations for them. When India joined the exclusive club of spacefaring nations comprising the U.S., Russia, France, Japan and China on July 18, 1980, Kalam was the Project Director of the Satellite Launch Vehicle-3 in the Indian Space Research Organisation (ISRO). Since then, India has joined the world leaders in satellite launches and space research.

Kalam’s tenure in the Defence Research and Development Organisation and as the director of the Defence Research and Development Laboratory (DRDL) at Hyderabad heralded immense achievements in missile technology; he was part of the team that envisioned India’s Guided Missile Development Programme. Projects such as the development of the Prithvi, Akash, Trishul and Nag missiles were undertaken. Kalam also insisted on the development of a strategic missile with re-entry technology, resulting in the Agni missile. He insisted that both ISRO and DRDO develop composites such as carbon-carbon, fibre-reinforced plastic, etc to make motor casings lighter so that the vehicles can carry a heavier payload. His consortium approach led to the indigenous development of phase shifters, magnesium alloys, ram-rocket motors and servo-valves for missiles. As scientific adviser to the Defence Minister, he helped conduct India’s nuclear tests at Pokhran in May 1998. But more than as a scientist and a technocrat, Kalam will be remembered for his tenure as India’s 11th president, when he moved the institution away from being merely formal and ceremonial in nature. He used the presidency as a platform to inspire youth, who were readily impressed by his earthy demeanour and discursive approach to public speaking. The missile man had his critics, but India’s most popular president leaves behind the legacy of more than one generation of inspired Indians.

Government crackdown will purify NGOs

“NGOs in crisis”

“13,000 in 2 months”

“Crackdown on NGOs”

If you have been reading newspapers in the last few months, you would have encountered some of these headlines. There is serious worry over the fate of non-governmental organizations (NGOs), and what the government intends to do with them.

My view is somewhat different: The ongoing crackdown could, in fact, turn out to be ultimately good for the innumerable honest but nondescript NGOs in the country.

The news reports seem to imply that the government does not like NGOs and is harassing them by questioning their actions and accounts. In fact, if we go deeper, the government is only moving against those NGOs which are allowed to receive foreign donations under Foreign Currency Regulation Act (FCRA) rules. However, the truth is that among the hundreds of thousands of NGOs in India, there are only a few which have such permission and have better financial resources.

From my experience working with NGOs, I would say the country’s social equity is based on the work of numerous low-profile NGOs with no foreign funding and little domestic funding, toiling at the village, panchayat and sub-district levels.

One could compare the contribution of these NGOs to that of 26 million micro-enterprises in our villages, clusters and small towns. Do the country’s economy and sustainability depend on these small firms or on the few large multinational companies and Indian firms with foreign investments? I would say the reason why we as a country never go into a deep economic crisis, unlike many other countries, is our intra-country dependency.

Similarly, if we look at our villages, talukas, blocks, sub-divisions and districts, you will find few signs of governance. Whatever social equity exists there is due to volunteers and the work of non-profit and non-governmental organizations.

Amid such governance failure—part of the reason could be found in the Socio Economic and Caste Census and part in the lack of businesses in rural areas—the only institutions that are effective on the ground in rural India are NGOs. Ironically, if ever someone was serious about delivering governance to these areas, the only option would be to depend on local NGOs or social organizations.

In my own experience, the deeper I go into districts, panchayats and villages, the only people I find capable of doing something good are always a group of volunteers or non-profit organizations. A business house with good intentions may provide money, some government bodies may appreciate your work if you’re lucky and stay out of your way as a good gesture, but the only people who would walk with you would be an NGO—and I mean it.

This does not mean all NGOs are free of the corruption that pervades India. As in the government and the private sectors, NGOs also have corrupt and dishonest elements. This is where there is good news for the NGOs and not-so good news for the government. Considering that the government is asking NGOs tough questions, we are, in fact, going to be better placed. In any case, the NGOs are supposed to be the custodians of the money granted for serving a cause, and they have no reason to hide their actions and accounts of what they are doing. In fact, for a well-meaning NGO, transparency will add value and help in raising funds.

I know for a fact that NGOs suffer immensely due to their inability to market themselves and raise funds. About five years back, we started talking to grassroots NGOs to help them go online and use the Internet as a marketing tool. We encouraged them to share local content and their work and reach out to those who may contribute to their resources by funding. We were humbled by the experience. About 5,000 such NGOs that had never known what information technology meant went online and now have several heart-warming stories to share of how digital inclusion has uplifted them in terms of legitimacy, accountability and transparency.

Moreover, with our advocacy, we also got .ngo approved as a top level domain, which is provided to valid NGOs. Which means any organization with a website bearing a .ngo extension can be considered a trusted NGO. This leads to the possibility that this database can be seen as pool of potential NGOs with whom companies and governments can choose to work with trust and dependency.

I also expect the NGO sector as a whole to be purified due to the government’s demand for NGOs to be online and share their accounts and sources. Thus, the pure and legitimate NGOs will make the life of governments even more miserable, if they fail to be accountable.

Since dedicated and honest NGOs will have nothing to lose, they will act with conviction and not just take orders. And that situation for NGOs at large is good news.

In my next column, I will discuss with you how going online has changed the lives of several grassroots NGOs—and those of the people they serve.

RBI at risk of losing autonomy? FSLRC draft gives the centre the right to appoint 4 out of 7 monetary policy committee members, and takes away the veto power of RBI governor

RBI at risk of losing autonomy?

FSLRC draft gives the centre the right to appoint 4 out of 7 monetary policy committee members, and takes away the veto power of RBI governor

At first glance, the revised draft of the Indian Financial Code released last week, 853 days after the Financial Sector Legislative Reforms Commission (FSLRC) published the first draft, seems to be a balancing act.

It has recommended substantial dilution of the powers of the proposed Financial Sector Appellate Tribunal (FSAT). This will replace the existing Securities Appellate Tribunal and entertain appeals against all financial sector regulators, including the Reserve Bank of India (RBI), but won’t have the powers to set aside any regulations which the first draft had envisaged. This is good news for the Indian central bank, but the not-so-good news is the composition of the monetary policy committee or MPC that it has proposed.

The latest draft gives the Union government the right to appoint four out of seven MPC members. It also takes away the veto power of the RBI governor even as he will have a casting vote in the event of a tie in the MPC (which can happen if one member is absent at the meeting).

A January 2014 report on revising and strengthening the monetary policy framework by RBI deputy governor Urjit Patel had recommended a five-member MPC with the governor as the chairman, the deputy governor in charge of monetary policy as vice-chairman, and the executive director in charge of monetary policy as a member. Even the two other external members, according to the Urjit Patel report, should be picked up by the chairman and vice-chairman on the basis of their expertise and experience in monetary economics, macroeconomics, central banking, financial markets and public finance. Overly tilted in favour of RBI, this report also suggested that the governor and, in his absence the deputy governor, will have a casting vote in case of a tie, but it was not in favour of the governor enjoying the veto power.

The idea of the veto power of the governor was mooted by the original report of the FSLRC which had spoken about a seven-member MPC, chaired by the RBI governor. While one member will be from the RBI, five independent experts in the field of monetary economics and finance will be appointed by the Union government, it had suggested. Of the five, the appointment of two members will be in consultation with the governor. It had also said that a representative of the central government, without having any voting rights, would participate in the MPC meetings to express the views of the finance ministry. The revised draft has changed the representation of RBI: government ratio in the MPC from 2:5 to 3:4 but dropped the proposed veto power of the governor.

This has sparked off a debate on the government maiming RBI and enjoying a greater say in the making of India’s monetary policy. The fear is politicization of the process as the members chosen by the government are expected to toe the government line, which often has short-term views on growth and inflation.

Let’s take a look at how the central banks in the developed markets work on monetary policy. In the US, the Federal Open Market Committee or FOMC decides on the Fed funds rate. Indeed, its seven board members are appointed by the president but their appointments are ratified by the Senate. And, there are instances of the Senate rejecting the president’s nominee. For instance, in August 2010, the US Senate scrapped the nomination of MIT professor and an expert on taxes and social security,Peter Diamond, to the Federal Reserve Board. There are five more FOMC members who are regional reserve bank heads, taking the total number to 12, each having one vote. The Bank of England’s monetary policy committee has nine members, including the governor, three deputy governors and the chief economist of the central bank. UK’s chancellor appoints the rest, who are independent. A member of the Treasury is allowed to attend the meetings and join the debate but doesn’t have a vote. The European Central Bank has a larger committee to decide on interest rates, consisting of six executive council members with permanent voting rights and 19 representatives from member states.

The fight between the finance ministry and RBI on the central bank’s so-called autonomy is not new. Rajan’s predecessors D. Subbarao and Y.V. Reddy had pitched battles during their tenures. While Reddy’s run-ins with the finance ministry were more on specific issues, Subbarao fought over broader policy issues. Many believe that RBI lost the battle for autonomy to the ministry of finance when Parliament passed the regulatory dispute resolution bill, paving the path for the creation of the Financial Stability and Development Council. Ahead of that, an 18 June 2010 ordinance empowered the finance ministry to resolve all disputes between the regulators, prompting then governor Subbarao to write to the finance minister, saying “the appearance of autonomy is as important as the actual autonomy itself”, and “the very existence of a joint committee (the council) will sow seeds of doubt in public mind about the independence of regulators”. The governor urged Pranab Mukherjee, then finance minister, to “allow the ordinance to lapse” but Mukherjee did not oblige him.

Even if the government enjoys the power of appointing four of the seven members of the MPC and the RBI governor does not enjoy the veto power, there’s nothing to worry about as long as the credentials of the members are impeccable and they are not serving government officials. Since the minutes of the MPC meeting will be made public, the government will be exposed if it plans to push its agenda through its nominees. Also, not the governor alone but the entire MPC will be held accountable if the inflation target is missed. This means everybody will have a stake and credibility to defend. The new set-up will not dent RBI’s autonomy, but even before it is put in place, the finance ministry should stop expressing its opinion on interest rates.