Indian industry has by and large put in place systems and procedures for ensuring smooth transition of stewardship at the top. This advantage is not available for the political parties which decide the direction of governance and the legislative and executive hierarchy of India
Two changes at the top in India Inc in recent years drew worldwide attention for the care with which the individuals in charge of the companies chose their successors. I am referring to the way in which Ratan Tata and NR Narayana Murthy handed over their batons to their successors. Remembered this while reading Ratan Tata’s following observation on Cyrus Mistry:
“I have watched him at close quarters, he possessed the ability to analyse businesses. I consider myself to be more of a numbers person than JRD was. I believe Cyrus is more of a numbers man than I am.”
Do “We, The People” who have adopted, enacted and given to ourselves a Constitution which is unique in several respects and is envied by other democracies, not deserve the same care and sense of belonging, expressed vividly by Tata, while filling the top constitutional positions that define the course the nation’s growth and survival path should take from time to time?
In fact, such care was taken by the people of India during the early 1950s which ensured Jawaharlal Nehru becoming prime minister, Dr Rajendra Prasad being elected as first president and various positions in the first Cabinet and slots at the top of several statutory bodies getting filled by individuals eminent in respective fields. But, looking back, one feels that the Constitution did not provide, and the incumbents did not foresee, the need for explicitly providing for smooth and appropriate succession plans for filling top positions in governance in India. Partly, this missing link could be attributed to the leeway the then leaders would have thought necessary to retain some freedom of choice in selection. Also, it is possible that the kind of developments in the fields of industry and technology, monetary expansion and globalization which have taken the country to the present day’s growth phase was unimaginable in the 1950s.
Read: Solutions for reviving India’s manufacturing sector lie in undoing government policies
These are not excuses which should allow the present leadership to shy away from realities. As mentioned at the beginning, Indian industry has by and large put in place systems and procedures for ensuring smooth transition of stewardship at the top. This can be attributed to the fact that there are “Business Models” available elsewhere in the world for them to “cut and paste”. This advantage is not available for the political parties which decide the direction of governance and the legislative and executive hierarchy of India (Indian judicial hierarchy did not suffer from this deficiency, though they too have problems of volumes and inadequate manpower to handle that) which had a growth path entirely different from that obtaining in other countries.
Put it bluntly, the Indian industry, trade unions and the intelligentsia gives an impression that they are comfortable with a ‘weak’ decision-making infrastructure in governance which can be influenced easily. The advantages are obvious:
These are some stray issues, if debated and churned in a dispassionate manner, may take us to some changes in the approaches to governance, which could help us in viewing issues like poverty, healthcare, literacy, financial inclusion and generally economic development from a different perspective.
(The writer is a former general manager of Reserve Bank of India.)
Inside story of the National Stock Exchange’s amazing success, leading to hubris, regulatory capture and algo scam
Fiercely independent and pro-consumer information on personal finance.
1-year online access to the magazine articles published during the subscription period.
Access is given for all articles published during the week (starting Monday) your subscription starts. For example, if you subscribe on Wednesday, you will have access to articles uploaded from Monday of that week.
This means access to other articles (outside the subscription period) are not included.
Articles outside the subscription period can be bought separately for a small price per article.
Fiercely independent and pro-consumer information on personal finance.
30-day online access to the magazine articles published during the subscription period.
Access is given for all articles published during the week (starting Monday) your subscription starts. For example, if you subscribe on Wednesday, you will have access to articles uploaded from Monday of that week.
This means access to other articles (outside the subscription period) are not included.
Articles outside the subscription period can be bought separately for a small price per article.
Fiercely independent and pro-consumer information on personal finance.
Complete access to Moneylife archives since inception ( till the date of your subscription )