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Appeal to industry

Prime Minister Manmohan Singh's appeal to industry to resist paying exorbitant salaries to its senior executives to reduce conspicuous consumption is impracticable. As one responsible for initiating the economic reforms and implementing them for a large part of over a decade-and-a-half — propagating the trickle down theory and the market-as-panacea for all economic ills — who is Dr. Singh trying to convince? Did he not ignore the advice that the reforms he and his coterie initiated would give rise to glaring inequalities?

M.S.R.A. Srihari,
Khammam

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Successive governments in recent years have maintained that economic reforms will benefit all sections. Clearly, they have been relying on Adam Smith's "invisible hand" to ensure that. The UPA Government suddenly seems to have realised that the hand was not just invisible but non-existent.

K. Vijayakumar,
Bangalore

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While one can only guess what the immediate provocation for the Prime Minister's remark was, there is genuine concern in industry about skyrocketing salary levels. It is believed that software companies started the trend, which forced other sectors and the government to hike the salaries of their employees. There is no rhyme or reason for the salaries software companies offer. Obviously, the trend cannot last long.

At the same time, industry has drastically reduced manpower since the overall salary outflow has to be kept within affordable limits. This is leading to a loss of employment opportunities. The government should be highly concerned about this situation. One hopes Dr. Singh had all these aspects in mind when he appealed for restraint on the salary front.

N.S. Venkataraman,
Chennai

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The reaction of some CEOs and sections of the media to Dr. Singh's appeal is appalling. Some say their income is hard earned. Others argue that compared with their counterparts in other parts of the world, their salary is nothing. Why don't they compare the salaries of ordinary workers in India with those of the workers in developed countries? Why do they want parity only for themselves? The Indian social cake is small. It has to be divided equitably.

The argument that CEOs will not put in their best if they are not paid fabulous salaries speaks volumes about their sensitivity towards the plight of the disadvantaged who are denied basic opportunities. If the situation persists, one can expect social unrest and possibly a revolution.

Kuriyan Joseph,
Bangalore

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Dr. Singh's appeal and advice are laudable. As a socially conscious Prime Minister striving for inclusive growth, he was right in saying what he said. A tiny section of society displaying vulgar consumption with the majority silently witnessing it will certainly lead to social unrest.

In line with the policy of 27 per cent reservation for OBCs in IITs and IIMs, the government should enforce reservation in all high-paying jobs. This way, the exclusive consumption club can be opened up for the underprivileged.

Siva Sivasubramanian,
Sydney

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