Nation will have to go through ‘hell & fire’
The Prime Minister, Mrs. Indira Gandhi, said to-day [June 15, New Delhi], that the country would have to go through “hell and fire” if it wanted to survive. Replying to a volley of questions on the effect of devaluation at her 60-minute Press conference, Mrs. Gandhi said, “No nation has achieved economic growth or independence — political or economic — without going through hell and fire. We have not done it. We have had a pretty soft time. We cannot hope to break through unless we are willing to go through that experience”. Mrs. Gandhi said that devaluation was obviously a controversial matter and different people held different views. “We had to decide in the larger interest of the country rather than on how it would affect our (Congress) fortunes in the elections,” she declared. Mrs. Gandhi said that it was true that the World Bank had advised them to take the step, but the Government would not have accepted it if our own experts had not thought that it was right advice. Aid or no aid, devaluation could not have been delayed and even if it had been deferred by a month, the economic situation would have become more difficult, she said. The Prime Minister denied that devaluation meant a shift in the basic policy pursued so far. She did not share the view that it would ultimately lead to a situation where the private enterprise, and not the public sector, would have the commanding heights. She also said that there would be no slowing down of activities in the public sector. It would not be right to infer from her remarks about the public sector’s performance at the executive’s meeting that there would be greater elbow room for the private sector. Asked whether in the next five years or in the Fifth Plan the gap between imports and exports would be narrowed down and the Government could do away with foreign aid, Mrs. Gandhi wondered whether external assistance could be stopped completely. But if progress was made according to plan, less assistance would be needed.
Autonomy for public sector units
The Prime Minister’s round-table on “how to make the public sector the creator of wealth” concluded here [New Delhi] late this evening [June 15] with agreement that public sector units should enjoy full autonomy and the board of each unit must have powers to appoint key officers, including financial advisers. The present system of having financial advisers from the Indian Audit Service only was not quite good. It was stated that the financial adviser should really be a financial manager preferably a chartered accountant or cost accountant with industrial experience. It was suggested that finance personnel should be appointed to other functions occasionally in order to broaden their vision and range of experience. There should be full time functional directors in each board preferably promoted from within. It was generally agreed that top posts, including that of chief executive and finance manager, be filled by personnel drawn from the public undertakings. The suggestion to have a single ministry for all public sector undertakings may be considered after the general elections. The establishment of a committee of secretaries to deal with the residuary powers of the boards of various public sector undertakings was suggested. The committee will look into particular problems affecting individual corporations, break bottlenecks and take quick decisions. The chairman or the general manager of the undertaking will explain to the committee problems of his undertaking to enable it expedite decisions. It was generally agreed that the various issues raised and the suggestions made be examined and appropriate follow-up action taken by Government. The Prime Minister agreed that it would be useful to hold a similar conference four months later. The round table to-day [June 15] discussed problems relating procedures, including financial and audit controls, pricing and personnel management.
Nasser’s concern
One of the main reasons prompting President Nasser to press for a summit meeting with President Tito and India’s Prime Minister, Mrs. Indira Gandhi, is stated to be the worsening relations between some African and Asian countries. Such a conference had been expected this month but now is planned for October. The precise date has not yet been announced but informed sources here [Cairo] think it will be about October 20. Cairo officials say the U.A.R. President has also lately grown concerned over what he sees as a steady drift by several developing nations away from the policy of non-alignment. He regards the meeting with President Tits and Mrs. Gandhi as a first step in combating this trend.
