LETTERS TO THE EDITOR
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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.
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.
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.
Noida, Uttar Pradesh
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
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