{Analysis} Will an M.Com degree holder work as a consultant in PMO with a peon's salary?

For the last few years, the government has succeeded in saving some money by engaging consultants on short term contracts of six months to one year. The move has been widely hailed, as it curtails the government’s liability in terms of accommodation, gratuity, pension etc. But should the government compromise on talents by paying peanuts to those consultants who need to work 9 to 5 every day like any other regular employee? Only recently, none other than the Prime Minister’s Office (PMO) advertised to get a…consultant (accounts) for a fixed salary of Rs 20,000 per month, which is incidentally lower than the salary of most peons working in the same South Block office.

According to the advertisement, the eligibility criteria for the post of consultant (accounts) is B.Com or M.Com, and preferably retired officers who held the post of Chief Accountant or AGM or DGM in government or public sector companies. And the workload includes introduction of Double Entry System of Accounting for maintaining the Books of Accounts such as cash and bank vouchers, cash and bank book, journal voucher etc.

The PMO probably did not get a suitable candidate in the first shot, for which the last date of application was extended by 20 days. The question is why will anyone be motivated to take up such a job in the PMO? One, the salary is low. But what’s missing is job guarantee. The advertisement made it clear that the selected person’s contract can be terminated anytime by paying one month’s salary, and if he or she does not attend office for a day, one day’s salary will be deducted.

But the question remains why will a talented M.Com degree holder join PMO for Rs 20,000? In PMO itself, a junior translator on a permanent payroll gets a monthly salary of over Rs 40,000, and the average salary of a stenographer is Rs 30,000. The library clerk gets Rs 40,000 and the carpenter’s gross monthly pay is Rs 30,000. Most peons and cleaners in PMO get over Rs 20,000 per month, according to information released in the official site!

{Analysis} Gujarat is the best state for Economic Freedom

Economic Freedom is a new measure of where an economy is headed. Based on work done by renowned economists – Milton Friedman and Michael Walker – an Economic Freedom of Indian states index was developed to understand where that state was headed.

Economic Freedom of the States of India 2012 report demonstrates the significant differences in economic governance that exist in India. It thus has focused attention on state-level reforms to improve inclusive economic growth. The Index is based on the Fraser Institute’s Economic Freedom of the World report. This was developed on the ideas of Milton Friedman, Michael Walker and others who wanted an empirically sound way to measure whether economic freedom would lead to better economic and social outcomes. This has indeed been conclusively demonstrated, and the index has become an important contribution to the international policy debate. Its success has inspired researchers to come up with sub-national indices to capture the performance of sub-national institutions in China, Germany and elsewhere. The Friedrich-Naumann Stiftung has been engaged in developing an Economic Freedom Index for the states of India for several years now. This index has become an important part of India’s reform discourse.

In this study, the state of Gujarat has emerged as a winner among the states in India.  This helps one understand why all the major countries and companies want to line up at the door of Narendra Modi to get a piece of the pie.

One understands that there is a whole industry in India and outside which demonizes everything to do with Gujarat and Narendra Modi, but it is important to understand the role that Modi has placed in Gujarat’s emergence and instilling of pride in common Gujarati person.

Bihar’s Nitish Kumar is supposed to be the other “bright kid” on the block.  And Bihar comes in atlowly 20th in this list.

One needs to understand that this index is more of a future looking measure which points to where a state (or nation) is moving to.

Source : Drishtikone

{Analysis} How are Chidambaram’s 2 ex-babus giving sleepless nights to govt?

Two IAS batch-mates and P Chidambaram’s favourite babus of yesteryears are giving a tough time to the government at regular intervals. Both were powerful secretaries in North Block during UPA-I; both happened to be hot favourite of their boss Chidambaram, as they were loyal and highly efficient civil servants. Who are they, and why have they chosen to target the government now?

Comptroller and Auditor General of India Vinod Rai and his 1972 IAS batch-mate, RBI governor D Subbarao were two most important aides of Chidambaram as finance minister during UPA-I. There was not even a single instance to find Rai, then banking secretary and Subbarao, then secretary of department of economic affairs, raising a voice against their boss on any matter whatsoever. They were loyal and faceless civil servants who preferred to remain out of the media glare allowing their boss to politically capitalize on their backhand work.

Incidentally, it was Chidambaram who pushed their cases, Rai for CAG’s post and Subbarao for RBI governor’s job.

But both are changed men now. As CAG, Rai has no obligation to listen to the government at all. And monetary policy is Subbarao’s own domain where he does not like his former boss to interfere.
After RBI’s half yearly credit policy review on October 30, Chidambaram’s frustrations were caught on camera. After unveiling a road-map of fiscal consolidation, Chidambaram was sure his former man in RBI would cut interest rate to facilitate growth, and ignore inflation at least for a moment. But Alas! Subbarao did not relent an inch. Chidambaram was so upset that he said: “If the government has to walk alone to face the challenge of growth, then we will walk alone.”

His other man of yesteryears, Rai has been a challenge for the government for the last two years. At least two of his reports, one on 2G spectrum and the other on coal allocation, gave sleepless nights to UPA-II honchos. But as time passes, Rai has turned a strong critic of the government at public functions. His sweeping comment against the government policies in a function in Gurgaon recently is giving enough ammunition to the Opposition to sustain its campaign against government’s alleged wrong and corrupt policies. “The brazenness (with which) decisions were being taken is actually appalling...”, was what Rai said while speaking at the World Economic Forum (WEF) meet, attended by top business leaders.

So, what’s next from Rai and Subbarao?