ANALYSIS
Manmohan Singh is a gentle and kindly man, not generally given to stirring up trouble. But his recent CII speech surely set the cat amongst the corporate pigeons.
Manmohan Singh is a gentle and kindly man, not generally given to stirring up trouble. But his recent CII speech surely set the cat amongst the corporate pigeons.
But first things first. The Prime Minister’s speech was a long, thoughtful address with an underlying common theme. He had, in fact, broken it up into 10 convenient sections, of which the suggested cap on CEO salaries was only part of a section. The media, as is its wont, zeroed in on it because it makes good copy. And corporate leaders fell into the trap with knee-jerk reactions which suddenly turned the PM’s appeal to Indian industry’s conscience into a kind of confrontation.
Yet, shorn of brouhaha, was Manmohan Singh saying anything he shouldn’t have said? The 10 sections might suggest to some that here was God laying down the Ten Commandments. Yet we all know that Singh never plays God, so he wasn’t casting his words in stone but was making suggestions in the context of the transition period our nation is going through, in some ways similar to 19th century Europe. He quoted Maynard Keynes, the influential British economist: “The new rich of the 19th century preferred the power which investment gave them to the pleasures of immediate consumption. If the rich had spent their new wealth on their own enjoyments, the world would long ago have found such a regime intolerable. But like bees these captains of industry saved and accumulated. They were allowed to call the best part of the cake theirs and were theoretically free to consume it, on the tacit underlying condition that they consumed very little of it in practice. The duty of ‘saving’ became nine-tenths of virtue and the growth of the cake the object of true religion.”
What’s wrong with that? Curb conspicuous consumption, reinvest money in growth, make the pie bigger and share it more equitably with all your stake-holders. What Manmohan Singh didn’t say, but what he implied was that industry often forgets that its stakeholders are not just its shareholders. If you see that your objective is only to please your shareholders, you try to maximise your profits, which could be by means such as forming cartels, profiteering by excessive mark-ups, reducing expenditure by cutting corners. And, most importantly, by reducing the cost of labour by paying the work force low wages. But if your perspective is wider, and you see your work force and your consumers as important stakeholders too, the equation changes dramatically and society as a whole has a share of the cake (or pie, if you prefer that culinary analogy). That to me was the essence of Dr Manmohan Singh’s message. And I ask again, what’s wrong with that?
And what is wrong with saying that conspicuous consumption should be curbed? We may now have more billionaires than Japan, but we are still a poor country. The disparity in the living conditions of the rich and the poor, the first thing a foreigner sees when he comes to India, we refuse to see at our own peril: farmer suicides, the rise of Naxalism, the short fuse needed to start a riot are all manifestations of an unspoken unrest caused by these disparities. To put it simply, are the millions spent by Lakshmi Mittal on his daughter’s wedding edifying in a country where millions live below the poverty line? If Vijay Mallya wants to live in a particular way, does he necessarily have to flaunt it?
The media is to blame too because it looks at India through the same prism as industry and, increasingly, plays up the vulgar ostentation of the rich and the famous. Perhaps that explains the hysterical reporting of the PM’s speech and the flaming editorials decrying it, some even suggesting that the government intended to put a curb on executive salaries. That leads me to a small suggestion. Before we denounce Manmohan Singh’s speech, we should first read it. And having read it, it wouldn’t hurt to think about it.
Delhi-NCR's air quality turns 'poor', AQI reaches...
India-Canada row: ‘No action on request to arrest Lawrence Bishnoi gang members’, says MEA
Cyclone Alert: Odisha coast likely to face cyclone next week, IMD issues alert
Noida school horror: Victim's mother reveals 'my daughter was told...'
‘India and Pakistan should bury the past’: Nawaz Sharif after S Jaishankar's visit
'Dil to bachcha hai ji': Rahul Gandhi's heartfelt interaction with kids, WATCH viral video
JEE Main 2025: NTA releases important notice on JEE Main exam pattern
Blow to Mukesh Ambani as Reliance Jio loses 10.9 million subscribers due to...
Joe Biden reacts to Hamas Chief Yahya Sinwar's killing, says 'that obstacle no longer exists but...'
Viral video: Desi girl's sizzling dance to 'Aaj Ki Raat' impresses internet, watch
Watch: Heartwarming video of girl treating slippers like a baby goes viral
Earn Rs 250000000 through THIS NASA challenge: Here’s how you can participate
DNA TV Show: Bahraich murder accused shot in police encounter near Nepal border; 5 held
Good news for Narayana Murthy, Infosys net profit rises to Rs 6,506 crore
Tamannaah Bhatia questioned by ED in Guwahati in money laundering case, details inside
Hamas leader Yahya Sinwar killed in Gaza, Israel PM Netanyahu confirms
UGC NET June 2024 Result DECLARED: NTA announces UGC NET 2024 June exam result online, check here
Did IDF eliminate Yahya Sinwar, or has Martyr been born in Gaza?
Hamas chief Yahya Sinwar among 3 killed by Israel? Israel Defense Forces updates
Kangana Ranaut's Emergency finally cleared by CBFC, new release date...
Here's the film after which Shah Rukh Khan started drinking, his co-stars were Aishwarya Rai and...
Akash Ambani, Shloka Mehta live on 27th floor of Rs 15000 crore Antilia, here's why
Young entrepreneur’s Rahul Sachdeva journey to make foreign education accessible
Is Rajinikanth's Poes Garden home flooded amid Chennai rains? Here's the truth behind viral video
'My family is broken but..': Zeeshan Siddiqui's first reaction to father Baba Siddiqui's death
DNA Auto Award 2024 Has Spoken: Jawa 42 FJ, bringing Neo-classic revolution in Motor Industry
Apple iPad 10th gen vs iPad 9th gen: Should you buy or wait for iPad 11?
Nita Ambani's hairstylist explains why haircuts can't fix damage and offers solutions
Bigg Boss Kannada's Kiccha Sudeepa retires from hosting duties, says 'let's make this season...'
Air India flight from Mumbai transmits emergency signal over London, claims Flight tracker
Elon Musk applauds India's decision: Spectrum allocation favors open access and innovation
BIG UPDATE on IPL auction, Saudi Arabia to host event, will take place on...
Two Bahraich violence accused shot by police in encounter while fleeing to Nepal; 5 held
'I won’t be returning': South African legend bids farewell to Sunrisers Hyderabad ahead of IPL 2025
Indian stargazers spot rare, ancient comet after 80,000 years, see breathtaking pics
Karwa Chauth 2024: Know the date, timings, history and significance
'46 all-out new 36 all-out?': Cricket Australia trolls India after batting collapse vs New Zealand
Mukesh Ambani's Jio superhit 5G plan, offers 90 days validity with unlimited data
IND vs NZ: Virat Kohli equals THIS unwanted record with 9-ball duck against New Zealand in 1st Test
Proba-3: ISRO to launch ESA Solar Eclipse Mission with precision satellites
'Law not blind': Supreme court makes 2 BIG CHANGES, unveils new justice lady and replaced…
J-K: Several CRPF Jawans injured in road accident in Budgam, probe underway
Who is Justice Sanjiv Khanna named CJI Chandrachud's successor, could become next Chief Justice?
Mukesh Ambani's BIG move: Reliance investors to get this DIWALI bonanza, know details here
'Ravan ko kisne maara?' This kid's hilarious answer will leave your in splits, WATCH viral video
Nayab Singh Saini takes oath as Haryana CM in presence of PM Modi, BJP brass
IND vs NZ: India all out for 46 runs, lowest test score at home
Hunter's Moon 2024: NASA drops first glimpse of brightest Supermoon, shares its significance
Meet man, IIT graduate who worked for Indian Railways, then went on to join Elon Musk's...
IND vs NZ: Devon Conway takes one hand blunder, gets Sarfaraz Khan on duck, watch video here
IND vs NZ test: Virat Kohli, Rohit Sharma fail to impress, India 3 wickets down in first 10 overs