Thursday, August 14, 2008

Nice guys finish second - finance world

Recently I was reading that some foreign diplomat was remarking that IAS officers in India consider themselves know all persons and will negotiate even scientific, military and financial matter ignoring subject experts.
Country continues to pay heavy prices for this over reliance on arrogant IAS officers.e.g. one lament Of BK in this book is increasing number of "people who matter" in Delhi. As per him it used to be 64 in British time but now he feels as he later mentions in book his own job in finance ministry had been divided into four full fledged department. I don't understand why this desire to cling to power. India expanded rapidly in same period and further when people do not get any specialist training in India and no hire-fire is practiced it is better to have more number of people to get more expertise.

He does not admit it directly but 4 out of this 64 people cost India its biggest foreign exchange loss in rupee-sterling negotiation. Another tendency to ignore industry experts present in mumbai or Calcutta or academicians was responsible for this.
In "transfer of power" by V P Menon it is mentioned that how they refused one proposal of Nizam on the basis that all financial experts were away negotiating in London and os no one could understand financial terms. A country of 30 crore had 4 financial experts then.

BK gives a further example when they were sent as a mission to Australia to study finance commission or division of financial powers between center and state. He admits that complete work was done by one professor in the delegation and ICS officers had no clue what was happening!!

Even our political masters were no better. How Nehru would spend thousands of dollars o buy paintings but would stop 70-80 dollar bills is mentioned very humorously.

BK's stint in USA at least made him aware of prowess of finance in world politics. he befriended who's and who of wall street and was instrumental in getting "India aid club" established. But sadly now a days people entering in civil service don't have fiance background necessary or elite upbringing to forge relationship with wall street bankers.

BK also mentions about one officer who even became India's representative at world bank who had a "nawabi" attitude - in short a shirker and inefficient at best and corrupt at worst. Such people were allowed to remain in system and even occupy high echelons speak a lot about Indian administration.

another telling example is Atalji when he was foreign minister in janata government was taken aback when British foreign minister discussed with him only trade relations. I hope our political leaders have improved since then.

But Morarji desai possibly due to his administrative experience come out as better finance minister.

Even today one can witness similar cases of financial ineptitude by leaders and bureaucrats alike.

No comments: