Too Utopian

In his article, ‘A flawed agenda for development’ (September 25), Ashish Kothari suggests that the world has consumed too much of natural resources and ecological balance would be possible by freezing economic growth and distributing the available economic wealth. It is a utopian thought that such redistribution can take place at a global level or soon. A status quo in economic growth will hardly solve the problem of poverty in a world of growing population. Besides, he advocates shifting emphasis from GDP as an indicator of development to “basic needs, well-being and harmony with nature”.

The two sets are interdependent and equally critical. The latter needs the former for investment in social good and the former has to grow by maintain ecological balance. The challenge is how to add wealth by using more and more clean technology, share it equitably and achieve this by making “peace with the earth”.  

YG Chouksey

Pune

Heed the Pope

The Pope’s address to the US Congress is hailed as historic not just because it was the first time any Pope addressed the Congress, but for what he said in his own inimitable way. He spoke on a host of issues ranging from immigration, climate change, and global economy, to arms trade, bigotry, death penalty to abortion, and got standing ovation. His emphasis on humanity and altruism are sure to have a tremendous impact on people’s thinking and social behaviour across the world. The message is that we must care more for the poor and the planet than we do now.

G David Milton

Maruthancode, Tamil Nadu

Rating the ‘cut’

This refers to ‘Economists divided on RBI rate cut demand’ by Vinson Kurian and NS Vageesh (September 25). The common sense perception is that the RBI will cut the base rates by 25 basis points. That will satisfy the finance ministry with which Raghuram Rajan has to at least maintain the present level of comfort for several reasons much beyond repo rates. By opting for such a stance, which will not have much impact on any of the economic indicators including inflation till end FY 2016, it will also silence the other ‘school’ of economists for the time being. After all the impact of the earlier rate cuts aggregating 75 basis points is yet to percolate fully to the ground level.

To buy peace for an extra month between reviews, the RBI should consider reverting to a quarterly schedule for monetary policy review. There are enough fora for the RBI to share its mind on policy issues between such reviews and technically, monetary policy measures including revision of base rates need not always coincide with such reviews. A lower frequency of reviews may reduce the scope for external pressures and lobbying.

MG Warrier

Mumbai

Black money

This is with reference to the news item ‘No action against black money declarants under FEMA: RBI’, (September 25). Irrespective of whether it is held in the form of foreign assets or domestic assets, inclusive of financial and non-financial modes, why shouldn’t both the RBI and the government direct black money holders to spend 50 per cent of it only in infrastructure development activities? No questions need be asked about the balance 50 per cent. This close-ended special scheme can be in place for three years or so. The government can ensure that infrastructure is developed reasonably well. Taxpayers can spend their money, guilt-free.

RS Raghavan

Bengaluru

Good arguments

This refers to ‘India needs a pulses revolution’ by Girish Aivalli (September 23). The arguments are very relevant. The government has to set up a committee to study why the cultivation of pulses does not rise to the level of actual requirements and initiate steps to upgrade the status of pulses to the state of other essential grains. Non-availability of land cannot be a reason because the land required for pulses is generally not fit to cultivate paddy. Neither is the absence of sufficient rain.

TR Anandan

Coimbatore

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