Electoral gambits and Competitive Politics
By: Amit Bhushan Date: 11th Mar.2016
We again have the electoral bugle especially in one or more of the large states. Some of these states and people (in south as well as in east) there like to be tackled through intellectually charged debates, rather than plain rhetoric as in case of most of the cow-belt. This fact may have been forgotten by some of the national parties as well as much of commercial news media but now needs a revival. So the same parties need to recognize and deliver upon this realization (by these articles in Management Paradise).
The prize for the winner is much vaunted seats in Upper house besides influence in the state itself from where they would have toehold on policies as well as connects with the Executive well beyond the current term of the central government. This also serves to accommodate the more heady electoral honchos and induct them directly into government with some control on executive machinations of the government through direct supervision and ownership of responsibilities. The ability to influence the politics is well understood by most players even though seldom spoken by in commercial news media. Elections of this magnitude also kind of set the stage or agenda for discussion in future elections since this is likely to be remembered by masses.This gives political leaders an important opportunity to lay out their policies to address public concerns on several issues.
It also gives an opportunity to explain legislations of importance like the real estate bill, its envisaged impact and structure required for proper implementation, where the current implementation seems to be faltering or likely to be faltering, if governance is left in the hands of current dispensation and why, with historical connects. To be able to explain electoral agenda to an electorate that prides itself of intellectual capabilities, sets an important test stage that such an agenda can sail through or rub well with some of the less urbane electorates, who tend to look at peers and vote the winner then calibrate political leaders and parties on their own.Then of course this is likely to bring out party positions as well as a peep into tactics on various issues like bank solvency and bankruptcies, GST, or even river cleaning, waterways, telecom and broadband expansion etc.
The political leaders in government will have opportunity to enumerate several of their current policy and implementation achievements and also lay out direction for future policies. There will be claims of public work delivery which will be evaluated and claims thereunder will be challenged. The opposition will have chance to gaze their own record as well which also be laid bare for comparison, which may also include their stance on various issues and both side may have a takeaway for future conduct.One of the key points neglected in these debates is that related issues and solutions are given a gross neglect by the commercial news media. Take the case of banking defaults especially in case of PSU Banks, which is in limelight, possibly due to efforts yours truly along with others. There are related issues of high concentration of loans amongst selected few whereas a vast majority struggles to raise loans.
The banking system is such that small business loan is generally brokered through the well- connected networks of CAs/Lawyers/Valuers etc. some of which may be acting as recovery agents or legal attorneys of these banks as well. The norms are twisted and as a result adverse selection is a result since the one not well meaning gets a walk through much more easily than the honest borrower. The solution can be two pronged i.e. to reduce Single bank borrower limits to say 5% at the entity level and 7.5% at group level (in order to reduce concentration risk) and make more money available to SME borrowers. For curbing adverse selection related issues, the norms should be transparent and the average scoring of all borrowers against norms for the branches should be measured and reported to public. Instead we see that industry starts crying when Single borrower limit is touched since they would prefer to raise a large loan from large banks rather than having to convince a clutch of these bankers with different banks and get evaluated much more rigorously in the process.
If such borrowers have real strength and their projects are so credit worthy, they would be able to sell bonds in market or raise money from foreign banks. And bankers who are able to prove that they are not diluting norms will be much better off and people complying with norms will have credit. These attached issues are never highlighted by commercial news media which hypes selected cases and solutions are particularly not discussed so that there is limited pressure to solve issues on the powers that be. Let's see the game evolve.