Guyana- easy and quick way to increase per capita income.

14/06/2011

Guyana is a midsized country in terms of area, with about 215000 sq.kilometres. However in terms of population, it is a very small country with a population of only about 750000 which works out to a density of less than 4 people per sqkm. The world average is about 14 people per sq.km. Guyana has fertile land, receives good amount of rainfall with a number of perennial rivers.The country can easily sustain a population of over 10 million, but unfortunately, the population is declining by about 0.5%.(mainly due to migration to USA, Canada)every year. This is why,the country is unable to exploit its natural resources like land, rainfall, bauxite, gold etc. Its per capita income is only about US$7000/- Guyana can raise its per capita income to about uS$15000/- within a short period of about 5 years, if the goverment leases out just 2 million hectares of its land to foreigners.The population may increase to about 1 million and the GDP would go up to about 15000 million.


Tamilnadu population 2011-natural growth and immigration

13/06/2011

According to provisional 2011 census data, the population of Tamilnadu state, India increased during 2001-2011 by 97 lakh(9.7million) from 6.24 crores(62.4 million) to 7.21 crores. The birth rate was 15.3 per 1000, death rate was 7.6/1000 and the natural increase was 8.6/1000. The natural increase works out to 53 lakhs, the balance of 44 lakhs being net immigaration(incoming migration-outgoing migration) from neighbouring states and mostely from high population growth states like Bihar, Jharkhand etc. But for the immigrants, the economy of Tamilnadu would have been in very bad shape. There would have been no growth at all. Does this mean that there is shortage of labour?

Actually, the economy has not expanded so much as to lead to labour shortage.(In fact even with immigrants,the economy has not grown as much as it could have been) What has happened is that a large number of people of Tamilnadu have been taken away from the labour force because of the so called welfare measure of the government of Tamilnadu, like free food items, free clothig, free shelter, free schooling etc(Free medical treatment however is necessary). Because of the freebies, a person needs to work only fo 4-5days in a month to earn for his requirements For the rest of the days, people are made to lie idle. Hence, there has been need for people from other states to migrate to Tamilnadu.

The migrants who drive the growth engine of the state need to be looked after better. They have to be provided with all the welfare measures as are the local people. The goverment should allot house sites to them on a priority basis. In other words, government should encourage these migrants to settle in Tamilnadu permanently so that the farmers will intensify agriculture, industriliast will think of expanding their busiesses,service providers will enlarge their activities. Simultaneously, the government should minimise the welfare measures, so that the local labour is also fully available for agricultural, industrial and other activities.
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Eradicating corruption- new approach

09/06/2011

Corruption at political and official level can be eliminated even without any new laws and regulations,institutions or authorities, if the existing regulations are strictly followed,the audit is undertaken at more frequent intervals and more thoroughly and a few minor amendments are made to the regulations. The office of the Comptroller and Auditor General of India should have more staff to have more frequent and thorough audit. In the 2G spectrum case, as soon as the order was issued in the first case, audit could have called for the files and pointed out the mistakes which they have done later, thereby preventing issue of further orders/orders in other cases.

In the name of facilitating quick decisions, initial examination is done at a fairly high level- at the level of Director/Joint Secretary in the central government and decision is made at secretary/minister level. It would be useful if as in the past all important cases are initially processed at the level of Assistant, and pass through Section Officer. Under Secretary, Deputy Secretary, Director, Joint Secretary, Additional Secretary and Secretary to the Minister.

There are various checks and balances in place in the Government. It may not be out of place to mention that all orders are issued by officials in the name of the President and the ministers have no power to issue any order. As of now, a Minister or Secretary to the government has no powers to create even a post of Class IV( Peon.) There is a procedure to be followed for this. Clerical and senior posts cannot be filled up without the consent of the Public Service Commission. No Financial sanction can be issued with retrospective effect. Orders with financial implications cannot be issued without the concurrence of the Finance Ministry or its representatives.

In India, constitutional authorities like Judges of the Courts, the Comptrollrr and Auditor General of India, the members of Election Commission of India, members of UPSC etc are known for functioning independent of government. They are not eligible for further offices either under the Government of India or under the Government of any State after retirement.However,they are eligible for appointment as Governors.(Former Comptroller and Auditor General of india, former Chairman of UPSC were Governors). It may perhaps be useful, to consider if it would be constitutional to make these authorities ineligible for appointment as Governors.


Labour Shortage- measure to ease

07/06/2011

There is an acute shortage of labour in every sector in India. However, in the name of welfare measures, government of india and the state governments are taking away a lot of people from workforce, thereby enhancing shortage of labour and curtailing growth in GDP. It is time the governments consider seriously the following measure to augment the work force

a. increase the age limit for giving old age pension from 60 years to 65 years and above

b. reduce the agelimit of children for employment

c.some kind of discrimination against able bodied people who refuse to work-in the matter of grant of freebies,concessions,

d.increase the working hours to atleast 8 hours a day in sectors where it is lower than this like in agricultural sector

e.strict punishment for petty thefts, trespassing by people,cattle etc, so that unproductive labour by watching (watchmen’s work) could be moved to productive sectors

f.motivating people to be sincere in and committed to work, so that the supervision could be minimised and supervisors could be employed more productively

g. curtailing freebies so that people would be forced to put in more work to earn more to meet the anticipated special expenditures on occasions like festivals, marriages, pilgrimages etc


Black Money- Government powers are limited

04/06/2011

A lot of discussions,meetings, agitations etc are taking place in India asking the Government to bring back the black money of Indians to India. In this connections,there appear to be the following constraints

1. the money belongs to individuals In he normal course, only the owners can take the money from the banks, though the government can explore possibilities of freezing the accounts etc but then the government should have details. individual depositors or foreign banks will not disclose the details.

2. The money is not with the foreign governments It is with the banks in foreign countries. Government of India can only negotiate with the foreign governments and not with the foreign banks as the banks would not negotiate with any one except the depositors Foreign governments may not be able to interfere with the banks without enacting new laws.

3 even if foreign governments enact laws to empower themselves to ask their banks to transfer the money to any bank in India, the foreign banks may not agree. the banks may go to the courts. courts will take into account the laws in existence at the time of deposit of the money.

From the above, it appears that it may not be easy for the government to bring the black money to India. But the government can certainly encourage those who have black money abroad to bring the same to India, by waiving punishment, penalty and also offering lower rates of tax. For example government can announce that the black money can be transferred to India and that those who transfer would need to pay tax of only 20% or 25% and that no questions would be asked. Since the deposits in foreign banks carry no or very low interest, most of the depositors would be willing park their money in Indian banks which pay nearly 10% interest.Unlike in the past,foreign exchange is easily avialable for all legitimate purposes. And also as the Indian Rupee is fairly stable, there is no particular advantage for majority of the people to keep their money abroad. Considering all these,some depositors may not mind paying a penalty/higher tax of 35% or 40% or even more)