Your cover story , “Missing focus and vision in running national affairs,” in the December issue of the magazine is superb and deserves applause. Former Principal Information Officer to the Government of India and Advisor to the Planning Commission S.Narendra has done a great job of exposing the way our political system works today . Having worked with four Prime Ministers of the country , he has had a somewhat perfect feel of governance of the past. He has put his experience to the best use in informing the concerned citizens today how the current Congress-led United Progressive Alliance government in New Delhi suffers from not just ‘governance deficit’ but a ‘fundamental trust deficit’ as well . One is sure his piece will lead to greater public awareness of the situation in the country and consequent pressure on the government to mend its ways. The Government would do well to take note of its lapses explained well in his story and adopt concrete measures to remove them as early as possible .

Mohapathi J,
Nagpur

                           According to a recent study, wage rates for agriculture operations increased rather sharply in 2009 and 2010. Farm wages increased by 15-20 per cent in Haryana, Bihar, West Bengal and Assam and 32 per cent and 43 per cent in Punjab and Orissa, respectively. In Andhra Pradesh farm wages increased by 40 per cent in 2009 and 27 per cent in 2010. There are clear signs that our agriculture is becoming more capitalintensive and mechanized. There is a rise in demand for agricultural equipment like tractors, harvest combines and threshers.

   This would result in higher labour productivity in agriculture .

   Presently it contributes only about 13 per cent of the GDP while employing more than half the workforce of the country. The study finds that the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) generated 2.5 billion mandays of work in 2010. It has raised the reserve price of labour and is forcing industry like construction and garments to become more capital-intensive. Employment created under NREGS is largely of an unproductive kind with the mandated 75 per cent of all expenditure on labour which precludes creation of tangible and long-lasting productive assets. It could affect the economy's capacity to generate the required supply response. Besides, the rather difficult investment climate in the country, with firms still needing up to 70 clearances to start a business, combined with changing regulatory goalposts, prevents the necessary supply response from being generated. The study rightly suggests the proponents of entitlements schemes like the NREGS and now the Food Security Bill to think of the consequences of raising purchasing power, entitlements and expectations without a commensurate increase in supply-side capacities. This could result in unsustainable macroeconomic imbalances in the form of higher inflationary pressures, rising current account deficits with higher demand being met by larger

imports and burgeoning fiscal deficit. We must have a judicious use of labour for creating productive assets. with firms still needing up to 70 clearances to start a business, combined with changing regulatory goalposts, prevents the necessary supply response from being generated. The study rightly suggests the proponents of entitlements schemes like the NREGS and now the Food Security Bill to think of the consequences of raising purchasing power, entitlements and expectations without a commensurate increase in supply-side capacities. This could result in unsustainable macroeconomic imbalances in the form of higher inflationary pressures, rising current account deficits with higher demand being met by larger imports and burgeoning fiscal deficit. We must have a judicious use of labour for creating productive assets.

Meghana Chatterjee,
Jamshedpur

         The introduction of FDI in multibrand retail trade would be very detrimental to the interests of producers . The UPA government argues that it will benefit the farmers. But experience in other countries shows that once multinational retailers establish themselves and eliminate the intermediaries, they are able to dictate terms to the producers. The farmers would become captive to the prices determined by the giant retailers.

Madhumita Kakkar
Mumbai

         The Capital Close-up of December issue by R.C.Rajamani made a breezy reading covering the hotly debated topics of the nation. The author has noted that UP Chief Minister Mayawati has won round one by her stunning ‘doosra’ delivered to bowl out her political opponents and prop up her own fortunes. But sadly, whenever our politicians bowl such ‘googlies’ and ‘doosras’, the nation stands to lose heavily. The ‘divide and rule’ legacy left over by the British is practised to perfection by our modern day leaders. Going by the turmoil that Andhra Pradesh has landed in, thanks to the aggressive pitch for ‘Telengana’, one shudders to think of what the state of UP will face in the years to come, if Maywati’s movement for ‘one by four’ gains ground. Years ago, the late former Prime Minister VP Singh resorted to ‘use of ‘Mandal report’ just to floor BJP and what the nation has witnessed ever since is history. Caste and regional politics have dominated parliamentary elections with the result that a single party rule has become a dream. The online version of the article is galore with formatting errors (eg: 'meet his' has appeared as ‘meeth is’) and Power Politics could do well to avoid such slips.

V.Viswanathan
Muscat

         In her article, ‘Working for a noble cause’ (Bitter Half ), Syed Mubin Zehra has observed that the Nobel Peace prize given this year to three women from Liberia and Yemen is a true signal to democratic solution to all political and social problems of the region. True, women fighting for social justice and democracy definitely deserve recognition. The three ‘prized’ women have weathered all odds and displayed phenomenal courage, caring a hoot for their own lives. The Nobel will give a fillip to women’s struggle for justice and democracy. But the ‘Nobel’ is not the end-all. When the 2009 Nobel Peace prize went to US President Barack Obama even as he was taking his ‘guards’ and just about to settle down, it raised several eye brows. It was like giving the shield to a player even before the match had begun in the hope that the player would perform. The Nobel committee has now enhanced its image by honouring three women most unexpectedly.

Subha
Chennai

         The incidents that have recently taken place on both sides of the border between Kerala and Tamil Nadu are very unfortunate. There are reports of houses being attacked in the bordering areas. Shops have been attacked in some cities in Tamil Nadu. Such incidents affect the longstanding harmonious and good relations between the peoples of the two states. The chauvinist forces who are seeking to whip up tensions on both sides of the border should be rebuffed. One hopes the people of both states do not to fall prey to provocations and maintain their traditional friendship and good neighbourliness. The Mullaperiyar dam issue which is the cause for the differences between the two states has to be settled keeping in mind both aspects – the safety of the dam and the provision of water to Tamil Nadu. The Central government must intervene and see that steps are taken to ensure the safety of the dam. Prime Minister Manmohan himself should take the initiative with both state governments for this. This is required pending the final decision by the Supreme Court.

Sonali Chatterjee
Nasik

Refer to “Dividing U P: Maya wins round one“(PP December 2011). Ms Mayawati's suggestion to divide Uttar Pradesh into four States is inappropriate. Already, the number of States since independence has increased manifold, which is not in national interest. Before independence there were a good number of small States and principalities in the country. Sardar Vallabhbhai Patel gave us a united India by bringing them into the Indian Union. The more the number of states, the more are the political problems for the Union Government and obstacles to India's progress. If the demand for new States is accepted, it will be a step backward. Yes, in situations and circumstances where economic development is the prime

Mayawati

consideration, the creation of a new State is acceptable. But it should be discouraged if the demand is on purely political considerations. In the case of Uttar Pradesh, politics is clearly the reason why Ms Mayawati is pushing for the State's division.

Mahesh Kumar
New Delhi