Perk story: CEOs and MPs gain at education’s loss!

While Prime Minister Manmohan Singh’s view to cap the salaries of CEOs has drawn much flak, one needs to understand the underlying reason. The government needs to divert money for education sector to fill the void rather than filling the MPs stomach.

INDIAN PRIME MINISTER had some time back raised a storm among the Indian Inc for advising lower remuneration to top CEOs and pulling them up for their ostentatious spending.

No doubt Singh’s suggestions did draw applause from the masses in the country, at the same time raising a series of debates on the issue.

While many feel that capping the salaries of the company heads will shackle the private enterprises, others say it is wrong to limit the freedom of enterprises arguing that the market being democratic should not be restrained.

Keeping the uphill salaries of the CEOs aside, let us sneak a look into the pay packets and concessions received by the Members of the Parliament.

According to a study conducted by rediff.com the monthly salary of an MP is Rs 144,000 per year (about $3,200), which works out to just Rs 12,000 (about $266) per month. Rs 14,000 (about $311) for office expenses every month, which includes Rs 3,000 for stationary items, Rs 1,000 on franking of letters, Rs 10,000 for secretariat services and a monthly constituency allowance of Rs 10,000.

Adding to that a daily allowance of Rs 500 when Parliament is in session. Parliament has three sessions every year, the Budget Session (February to May), Monsoon session (July to September), and Winter session (November and December). Apart from that a daily travel allowance of Rs 8 per kilometer is also given to the MPs.

Each MP and his spouse or companion is entitled to unlimited, free, first class railway travel anywhere in the country. They can also travel anywhere in India -- with a spouse or companion -- 40 times by air free of cost every year, business class.

An MP gets a sprawling bungalow in the heart of New Delhi for which he pays a rent of just Rs 2,000 (about $44) per month. Each MP gets near-free electricity of 50,000 units every year. And free water. The MP's bungalow is furnished with air conditioners, refrigerators and television sets free of cost. Maintenance of the house including washing of sofa covers and curtains is done free of cost by the government. MPs are entitled to three phone lines and 170,000 free local calls every year.

When an MP travels abroad officially, he is entitled to free business class air tickets. He is also paid a daily travelling allowance, which varies depending upon the country being visited.

Most medical expenses of MPs are taken care of by the Contributory Health Service Scheme of the Union government. Each MP also gets Rs 20 million (about $434,782) each year from the Members of Parliament Local Area Development Fund. But the MP does not get the money directly. Instead, it is transferred to respective district headquarters where projects are being implemented.

As we know, if according to the Prime Minister, the CEOs or the people with white collar jobs are getting highly paid, it is because of the demand in talent and dearth in supply of people who can shoulder such responsibilities.

But what are our politicians, the regular visitors to the Parliament doing? Reaping the results of their campaign or making hay while the sun shines for their future?

While we ponder on the above points, it is essential our Prime Minister realize that the government should emphasize on upgrading the education system of our country.

If we have to work towards economic growth, which is a necessity, we need to tap people with white-collar jobs in this competitive global market.

The need of the hour is to re-evaluate the education system so that we have better and educated society groomed for such purpose rather than just literate citizens. Reforming the education system in the country can only do this. As we approach progressively in the global scenario, we should realise that we equip the future citizens with all the necessary weapons that are necessary for such jobs.

Educational Institutions run by the government should emphasize on English language rather than Hindi or any vernacular language… because it is English language that is in demand and is saleable in the global scenario.

Most of the government schools are in a state of apathy. Better infrastructure in government schools coupled with enhanced execution and regular attendance by the students will definitely bring about the desired results. Apart from the schools, it should be emphasized that higher education also should be reformed. Instead of becoming citizens with mere degrees, they should be well equipped to face the rapidly changing market.

And this can only happen when the so-called leaders of our country arise, awake and work towards the goal.

But this does not mean that the government alone is responsible for developing the society or the nation. A considerable percentage of the onus lies with the private sectors too.

There is something called Corporate Social Responsibility.

Companies like Sony have set examples by adopting whole villages in Japan in the early seventies and eighties. They took up the responsibility of educating to providing employment to the children of the village. As a result 18 to 20 yrs later when these children attained the capacity to earn their own livelihood bought Sony products for themselves. Few of them managed a job with the company itself.

In India too we have some examples where companies are involved in such CSR activities. Tata, Reliance, Birla, Mahindra, ITC are a few to name.

But with large number of companies floating in the Indian market and generating profitable amount of revenue, a modest responsibility shown by these companies towards the upliftment of the people and the nation in general will go a long way in pronouncing a developed society.

Lastly, it needs to be mentioned that last month (June 6, 2007) the United Nations have called for proactive promotion of corporate social responsibility by the world's business schools in their teaching programs. At their meeting in Geneva, members of the UN Global Compact Leaders' Summit called on business academics to incorporate what they called "universal values" in their teaching and research.