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Action for closing down unrecognised schools as per the enunciated policy of the Government has since been initiated. There is no denying the fact that in the total scheme for educational revamp mushroom growth of private schools without the requisite infrastructure has to be checked. Commercialisation of education is justified to the extent of improving competitive environs and better standards. .. ....more While it is the right of all opposition parties to pinpoint deficiency of the Government and seek resolve of peoples problems by focussing them at all conceivable forums, opposition that tends to destabilise the country and does not subserve national interests has no sanctity in democracy. It is the pure game of numbers. If the incumbents have it and mandated as such by the people singly or......more |
New
credit policy : A shift in thrust By : Sisir Basu The Reserve Bank has replaced the credit policy for the busy reason with a midterm review of monetary and credit policy. While ....... more Recognise the contribution of women to development By : Arun Vinayak What will be the status of women in the next millennium, hardly a year away? What is happening to them the world over at present doe.....more Economy through fleet harmonisation By: D. K. Arora An airline's successful operation depends on the composition of its fleet. The trend today is towards aircraf...more |
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EDITORIAL Action for closing down unrecognised schools as per the enunciated policy of the Government has since been initiated. There is no denying the fact that in the total scheme for educational revamp mushroom growth of private schools without the requisite infrastructure has to be checked. Commercialisation of education is justified to the extent of improving competitive environs and better standards. But opening of teaching shops by all Toms, Dicks and Harrys pose serious danger to the entire educational system. Some means have to be deployed to ensure that education remains education and the vulnerable sections of society do not fall victims to antics of such set ups that have only money as the motive without giving anything in return in terms of proper education. From the outset it must be appreciated by the policy makers that mushroom growth of unrecognised schools is very largely attributed to lack of any standards in Government schools. Consequently parents are left with no choice but to admit their wards in nearby private school. They are not aware whether the school is recognised and if so upto which class. Since admission to well-reputed private institutions is restricted and they are unable to meet the demand, patronisation of schools with hardly any standing is the obvious choice but surely Government schools happen to be the last choice. It is apt to mention that education department functionaries are equally to be blamed for their failure to check growth of unrecognised schools, some of them remaining in the business for a number of years. Now that the malaise has assumed alarming proportions, the administration has woken up to tackle the menace by initiating steps for closing them down. On the face of it this exercise appears ridiculous at this stage. While figures from Jammu are not readily available, there shall be at least 63000 students who will be deboarded from unrecognised schools in the valley. The figure in Jammu is not going to be any lesser. This means over a lakh of students face the axe or disruption or dislocation. This is something very difficult to justify or digest. The Government has no moral or any other authority to let thousands of children go for education in Government school worse than what they got in the unrecognised schools. At this stage the problem needs to be viewed pragmatically so that minimum number of children are derailed. It is the considered view that those of the schools that remain unrecognised should be rationally categorised in three compartments. First, schools that have the potential of maintaining average standard. The building is okay and the faculty meets the requirements of education department. Such schools must be asked to seek recognition forthwith. The second category pertains to those not so well equipped in terms of basic requirements. Such of the schools should be put on notice to improve the things within stipulated time frame, say one or two years. It is also to be treated as notice to such schools in the event of their failure to come upto the required standards. Interim recognition for a couple of years can be considered for such of the schools. The third category is the one which is devoid of any infrastructure and has no possibility of looking up. Only such unrecognised schools that have nil prospects for the teachers and the taught should face the axe. This exercise would reduce the number of students likely to be displaced to a manageable level. As regards recognition exercise, it ought not to be a cumbersome exercise with frivolous procedures that breed corrupt practices. In fact, recognition business is indeed vulnerable to extraneous considerations. It should be so simplified asto allow all private schools to get it smoothly and expeditiously. Since private schools play important role, even unrecognised ones, and in fact reduce the burden on the Government significantly, there should be no element of witch-hunting and wholesale winding up. No, that is not on. Let it be a selective application. The entire thrust should be for according recognition to the maximum number of schools and only those that have nothing to offer in terms of reasonable education should be wound up. While it is the right of all opposition parties to pinpoint deficiency of the Government and seek resolve of peoples problems by focussing them at all conceivable forums, opposition that tends to destabilise the country and does not subserve national interests has no sanctity in democracy. It is the pure game of numbers. If the incumbents have it and mandated as such by the people singly or jointly, they should be allowed to govern the country. The opposition must wait until next chance at the husting. Contrarily, if the number game starts favouring the opposition they have every right to lay claim to form Government. Unfortunately the ongoing game is quite sinister. All types of intrigues and nasty games are on to somehow destabilise the Government. In doing so, no norms and ethics are being observed. All types of tools are being used to get rid of the BJP led Government at the Centre. Initial stand of the Congress Party as enunciated by its President Sonia Gandhi was that they would wait for the BJP Government to fall and then only think of forming alternative Government. Right now means other than democratic are at work to create uncertainty by arousing passions, provoking religious susceptibilities to cause communal divide and indulge in rhetorics to undermine credibility of the Government. These things are bound to recoil on the initiators before long. But right now the damage being done is acute. The system, the values the ethics and all that is in danger of being threatened. One such example pertains to protests being lodged on the recitation of Vande Matram and Saraswati Vandana. Incidentally, Vande Matram is a nations theme so favourite with the freedom fighters which included people from all religions. In fact Vande Matram was the rallying slogan like 'Inquilab Zindabad'. Saraswati Vandana is worship of the goddess of learning. These are very old ancient themes when there was no communalisation. But these days the fashion in vogue is to exploit all such issues that inculcate nationalism and exhort the vulnerable by giving it religious twist. The second example pertains to CPM and Congress becoming strange bed-fellows overnight sans programme or policies. Only one point is mentioned i.e. to dislodge BJP Government which is communal and replace it with secular one. Strangely it comes from parties that have promoted communalism in Kerala and other places by appeasing Muslim League in return for political support. Leftist Government of Namboodribad (CPM) created Mallapuranm district while Congress led Government in Kerala declared Friday as holiday in many places. Mulayam in order to appease Muslim electorate asked Government to release Rs 2000 crore for Pakistan to bail them out from current economic crisis. One really wonders who is communal and who is secular. But destabilisers are overzealous and working overtime to the detriment of teeming millions and the nation that needs stability at this crucial juncture. |
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New credit
policy : A shift in thrust The Reserve Bank has replaced the credit policy for the busy reason with a midterm review of monetary and credit policy. While this itself signals a change in its approach to monetary control, what is more important is the shift in the thrust from changes in bank rate and cash reserve ratio to matters that are more substantive. Essentially, the central bank's concern is over the viability of commercial banks. RBI governor Bimal Jalan must be commended for making risk management a major priority of commercial bank operations. This is what should be, given the challenges of competitive banking. While one would have liked a serious effort towards reducing social lending, a beginning would appear to have been made with Mr Jalan voicing the demand for reducing the share of government securities in the portfolio of banks. The introduction of 20 per cent risk weight effective March 31,2000, for government guaranteed advances which go into default and 100 per cent a year later must be seen as a warning that banks would not perpetually be captive lenders to the government and its agencies. We have obviously come a long way from the September, 1994 accord between RBI and Union finance ministry on ad hoc treasury bills being phased out and now the government is being told that it must begin to look for resource support outside RBI and the banking sector. RBI has also declared that government guaranteed advances which have turned sticky will begin to be treated as non-performing assets as per existing prudential norms effective April 1, 2000. This is a virtual repudiation of the guarantee given by the government. Clearly, the government now has to exercise utmost care in choosing which agency or programme should get its support. It would appear that RBI has left its anxiety over the quality of banking practices and operations wholly dictate the mid-term review of credit policy by apparently refusing to respond to the present state of the Indian economy. Oddly, the Reserve Bank blames the government for tapping the banks far more than warranted by the expected grown of the real sector of the economy. It is, however, more optimistic on the growth of the economy than independent agencies. The growth in money supply and the inflationary pressures in the economy have weighted more with the central bank than the slowdown and weak recovery. In taking this stance, Mr Bimal Jalan is aligning himself with the heads of the central banks in the developed countries, who are known to be more concerned with containing inflation than spurring growth. The International Monetary Fund will, no doubt, like this identification. For its part, the Bank for International Settlements (BIS) will be pleased with the latest measures to enhance the quality of risk management. For the banking sector itself, a major aspect of its globalisation would be the adoption of capital adequacy and provisioning norms on par with internationally accepted standards. The Indian banks will have to protect their bottomlines to win acceptance abroad. Enhancing capital adequacy ratio by 1 per cent from the next fiscal onwards is a necessary beginning towards that end. Added to this is the prescription of a higher risk weight on government and approved securities. A central bank that does not force the banking constituents into a regime of discipline runs the risk of losing its own credibility. Former Reserve Bank governor C Rangarajan had set the agenda for the central bank in M G Kutty memorial lecture in 1993 which generally advocated parity in terms of functions as well as powers between RBI and its counterparts in the developed countries. A major theme was that the nation's central bank should cease to be the captive banker to the government. His successor is now seeking to extend this agenda to the commercial banks. Logically, this is acceptable. But the Indian context can only take such a reform in slow phases and without upsetting the applecart of growth generally and poverty alleviation in particular. The Narasimham Committee had in its recommendations to the government in November, 1991, called for a substantial cut in the statutory liquidity ratio and cash reserve ratio and also a reduction in the directed credit or priority sector advances . Mr Bimal Jalan has not broached on either SLR or priority sector lending but sent signals to the policy makers that he expected initiatives in this regard. One can say the same also in respect of the Narasimham Committee's proposal for reduced government and RBI holding in public sector banks. Depending upon the state of economy, business people whether engaged in trading or industrial activity make their own guesses about the probable accent of the policy stance. The state of economy admittedly is in bad shape, as the performance of almost all sectors of the economy has somewhat deteriorated from the previous year's not so happy state of affairs. Industrial investment and output continued to be sluggish. The state of capital market, both its primary and secondary segments, is a matter of great concern. Exports do not reveal any signs of recovery. And the price scene appears to be uncomfortable. In this depressing scenario, only positive elements seem to be the relative stability in the exchange rate at its depreciated level as well as the comfortable levels of forex reserves. Has not Prof. Sayers, the authority on 'Dos' and 'Donts' of central banking, maintained that ''Discretion is the essence of central banking''? The exercise of these discretionary powers that require the RBI to deploy the monetary weapons in its armoury at a short notice as state of affairs undergo continual change. Then what is the point in spelling out the specific measures applicable to six month period on any given date? Influenced by these thoughts, Dr Jalan mentioned at the time of his policy statement for the first half of the year that structural measures would be usually announced in April and they would not be normally changed. However, Dr Jalan reserved the right to effect changes in bank rate, CRR, repo rate, access to refinance at any time. Then, what has remained for the customary statement to be issued in October? To quote him ''in general. October statement will be confined to a mid-year review of credit and monetary developments''. But this is not the reason enough for not effecting any change in policy when the capital market is in the doldrums and business confidence is low. The remarks of Dr Jalan that the prevailing situation warrants some amount of monetary lightening show that he is convinced about the necessity of improving the access and availability of credit or of reducing the cost of credit. Dr Jalan, in fact, has warned the he might resort to monetary tightening if price situation or external developments call for such measures. He has not resorted to such tightening lst that might affect the industrial recovery. Obviously, Dr Jalan is worried about the pace of monetary expansion at 18.3 per cent and its implications for price rise, even though he is aware that the price rise is confined only to food items. Monetary tightening cannot be of any help in this regard. On the other hand, his concern about the impact of cheaper credit on exchange rate is justified in the back drop of developments in the forex market in the recent test. Admittedly, RBI by itself cannot do much to revive the economy as monetary policy is only an enabling one. A reduction in interest rates is not likely to result in any significant increase in demand for credit. But incentive measures in inducing resource flow from banks to capital market could have been helpful. (INAV) |
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