3rd Lecture - Lord Meghnad Desai, Internationally Renowned Economist and Member, House of Lords, UK

Thursday, 20th December 2007

Mr. Nandkishor Kagliwal, President, MEDC welcoming Lord Meghnad Desai	Mr. Nandkishor Kagliwal, President, MEDC delivering welcome address
Lord Meghnad Desai delivering the lecture others from R to L: Cdr. Dipak Naik, Regional Director, MEDC, Mr. Rajiv Madhok, Executive Director, Bank of Maharashtra, Mr. Nandkishor Kagliwal, President, Mr. Shamrao Chaugule, Vice President, MEDC & Mr. M. A. Tejani, Committee Member, MCCIA, Pune
Audience at the lecture

Lord Meghnad Desai responding to the audience questions. Others from R to L : Cdr. Dipak Naik, Regional Director, MEDC,
Mr. Rajiv Madhok, Executive Director, BoM, Shri Nandkishor Kagliwal, President, MEDC, Shri Shamrao Chaugule, Vice President,
MEDC and Mr. M. A. Tejani, Committee Member, MCCIA, Pune

As MEDC is currently celebrating its Golden Jubilee, we have decided to organize 4-5 lectures called as Golden Jubilee Lecture – Series. Eminent Economists, Management Thinkers, Industrialist, etc. will be invited to deliver these lectures. After 2 successful lecture delivered by Mr. Partha Ghosh and Dr. Kirit Parikh, MEDC organized third lecture by Lord Meghnad Desai, Internationally Renowned Economist and Member, House of Lords, British Parliament on Future Directions for India Inc’ on Thursday, 20th December 2007 at 6.00 pm at Jog Auditorium, Lokmangal, Shivaji Nagar, Pune.

Shri Nandkishor Kagliwal, President, Cdr. Dipak Naik, Regional Director, MEDC, Shri Rajiv Madhok, Executive Director, Bank of Maharashtra, and Mr. M.A. Tejani, Committee Member of the MCCIA were present on the dais. Shri Nandkishor Kagliwal welcomed by the eminent speaker and offer the flowers and memento to the speaker. In the introductory speech Cdr. Dipak Naik explained the role and activities of the MEDC in brief. Mr. Rajiv Madhok also welcomed by Lord Desai on behalf of Bank of Maharashtra.

Lord Meghnad Desai in his speech elaborates the various issues related with the Indian Economy. The Indian industry ought to be more confident in taking on the domestic government structures and insisting that Indian governments (Union and States) have to be much better delivering than what they should deliver, said Meghnad Desai, noted British Economist, author and Labour politician.

In a hard-hitting speech, Desai observed that Indian private sector has traditionally been ‘cowardly’ in its approach to government. While the industry was enslaved under the erstwhile British regime, things changed little thereafter and the industry came to the point of starting to enjoy the slavery – nurtured through a protective Licence Raj.

‘The private sector ought to grow strong enough to say that it does not believe in Five-Year Plans. Instead, it should draw up alternative growth strategies and ask governments to follow the same,’ he said.

Desai criticized the government inefficiency in pushing economic reforms at a pace that it was expected to be pushed. He blamed coalition polities for the existing maladies, as reflected in indecision and distorted subsidies. He cited labour and banking reforms as classic examples of such inefficiency.

Referring to instances of farmer suicides, Desai said that four decades after the nationalization of banks, the very purpose of efficient rural credit had not been met. ‘Indian banks have failed to provide the requisite flexibility to rural credit’, he said.

Similarly, urgent reforms in labour laws were essential for ensuring large-scale shift of excess labour, dependent on agriculture, to the industries and securing high growth rate for manufacturing, he said, ‘China succeeded in doing so’, he pointed out. Contrary to the fears, labour law reforms will improve employment situation and reduce poverty, he said.

Desai was, however, critical about the Special Economic Zone (SEZ) model being adopted by India. He described the same as an instrument designed for land scams and securing money for political party funds.

Non of the SEZs in India are following the successful China model,’ he pointed out. SEZs were also an excuse for not doing anything on the labour law reforms front, he added.

Mr. M.A. Tejani, Mg. Director, Gits Products and Committee Member of MCCIA, summered up the lecture. Cdr. Dipak Naik, Regional Director, MEDC delivered the vote of thanks. More than 250 prominent industrialists, bank’s officials, economists, educationalist and representatives from press and media were attended this function.