LET­TERS TO THE ED­I­TOR

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The Hindu Business Line - - THINK -

No time to set­tle

With ref­er­ence to your edit, ‘Same old story’ (De­cem­ber 7), there is need­less ex­cite­ment over ev­ery policy re­view. Each econ­omy car­ries its own bag­gage.The Bank of Eng­land chief econ­o­mist said that an in­ter­est-rate in­crease should be con­sid­ered good news for the UK. Our econ­omy has gone in­elas­tic to rate cuts. Over decades our econ­omy did well even at el­e­vated key rates and crude prices .And yet to­day with both fairly low, it is slug­gish..If the UK is in trep­i­da­tion over Brexit, we are stuck in the wake of quick­fire re­forms that have made econ­omy tur­bid. The silt cloud­ing the econ­omy needs time to set­tle.

What is im­por­tant now is to chan­nel large fund flows into the MSME sec­tor. From fam­ily op­er­a­tions Chi­nese SMEs ex­ploded into global pow­er­houses.

R Narayanan

Navi Mum­bai

Growth can­not be spurred by rate cuts alone. For the over­all business en­vi­ron­ment, the im­pact of two suc­ces­sive dis­rup­tive pro­ce­dures, de­mon­eti­sa­tion and GST, are still lin­ger­ing and new business ini­tia­tives are taken with cau­tion. Policy rates should be for a longer ten­ure to en­able new business ven­tures; the in­ter­ests of se­nior cit­i­zens should be pro­tected to a certain thresh­old level. For the re­tail bor­rower, in­ter­est rates are sec­ondary and it is only the turn­around time to dis­pense credit that mat­ters. Cor­po­rates have al­ter­na­tive sources of fund­ing, in­clud­ing ac­cess to cheap funds in over­sees cen­tres. Banks are strug­gling to hold their bot­tom lines due to es­ca­lat­ing NPAs. Be­sides, rate cuts on ad­vances have to be passed on im­me­di­ately, whereas the re­duc­tion in de­posit rates can only be prospec­tive.

S Veer­aragha­van

Madu­rai

Bereft of ideas

With ref­er­ence to ‘When ideas are in hid­ing’ by Ragha­van Parthasarthy (De­cem­ber 7), it is not sur­pris­ing that In­dia fares poorly on in­ven­tive­ness and fil­ing of patents. We don’t en­cour­age re­search & de­vel­op­ment or in­no­va­tions as a so­ci­ety be­cause they don’t of­fer lu­cra­tive ca­reer op­por­tu­ni­ties. We al­ways chase high pay­ing jobs rather than take un­charted paths. Also, peo­ple fear that if af­ter years of hard work their in­no­va­tions or patents don’t work, they may end up with­out a job. So apart from fund­ing, what is re­quired is a change in mind­set.

Bal Govind

Noida, Ut­tar Pradesh

Such en­ti­tle­ment

This is with ref­er­ence to “Rahul G and the eco­nom­ics of ‘demo­cratic dy­nas­ties’ ” by Venky Vembu (The Cheat sheet, De­cem­ber 7).There is one more fac­tor pe­cu­liar to In­dia. Fam­i­lies prop up suc­ces­sors with­out groom­ing them for the role. Un­like cor­po­rate prac­tice where dy­nas­tic in­her­i­tance is the norm, politi­cians do not in­cul­cate knowl­edge and ex­pe­ri­ence in the in­cum­bent be­fore in­tro­duc­ing them in the prac­ti­cal field.

Rabri Devi, Laloo Ya­dav’s wife, be­came CM of Bi­har as a vir­tual novice. Com­pare that with the ef­fort Hil­lary Clin­ton had to put in even to get nom­i­nated by the party. Be­sides, dy­nas­tic suc­ces­sors are not ac­count­able to the party for their per­for­mance. The sooner this prac­tice is ended the bet­ter. YG Chouk­sey

Pune

Jerusalem’s sta­tus

By de­cid­ing “to of­fi­cially recog­nise Jerusalem as the cap­i­tal of Is­rael” and move the US em­bassy from Tel Aviv to Jerusalem in con­tra­ven­tion of in­ter­na­tional laws and UN res­o­lu­tions, Don­ald Trump has for­feited the moral author­ity to act as a ‘peace bro­ker’ in the re­gion. Re­gret­tably, Trump’s de­ci­sion le­git­imises and even en­cour­ages the con­tin­ued Is­raeli oc­cu­pa­tion of the Pales­tinian ter­ri­to­ries of West Bank and the Gaza Strip. The is­sue of Pales­tine’s stake in Jerusalem is a red line that can­not be crossed. The Pales­tini­ans be­lieve in a “uni­fied Jerusalem” and not in a bi­fur­cated city.

Jerusalem is a city like no other: it is a holy site to Chris­tians, Muslims and Jews. The Pales­tini­ans have more claim on Jerusalem than any­body else, in­clud­ing the Is­raelis. The prin­ci­ple that ‘might is right’ is to­tally un­ac­cept­able in a civilised world. Maintaining Jerusalem’s sta­tus quo is of crit­i­cal im­por­tance to avoid an es­ca­la­tion of the con­flict and reach a peace­able set­tle­ment and se­cure a more sta­ble world.

G David Mil­ton

Maruthancode, Tamil Nadu

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