Freedom Should Come with Restraint

(Published in Banking Services Chronicle March 2002)


Freedom is a concept. And a concept has various interpretations. Which makes it likely to be abused. For example, I have heard Delhi Transport Corporation (DTC) bus passengers say on Aug 15, and some of them might say this on Jan 26 even: “Today is Independence Day. No tickets required. We are free. Free to do what we please and how we please.”

It is such ignorant interpretations that imperil freedom in a democracy. True, everyone of us has a right to freedom. But for the very reason that a democracy is not an autocracy, this right to freedom has its limitations. You cannot encroach upon your fellowmen’s rights. The rights of individuals are important but they cannot be allowed to override the rights of the society as a whole.

In fact, even an institution is not considered to be sacrosanct. It may be prone to errors. So we have a mechanism of checks and balances. The legislative, the executive and the judiciary are independent. But still each has to respect the wishes of the others. Of late, we have seen the executive often being reprimanded for negligence of duty. The judiciary has stepped into unknown territories. So much so that judicial activism itself gives rise to controversy at times.

Thus no institution or individual can be allowed to indulge in unbridled freedom. At the same time the precautionary mechanism should not fetter a society. And it is in this perspective that the Supreme Court verdict to allow the general public to have the freedom to display the national flag is a welcome decision. Of course, caution will be exercised to prevent the abuse of the liberalising of the flag code. For this, amendments will be made to the Prevention of Insult to National Honour Act, 1971. So that adequate penalty can be ensured for deliberate acts of insult to the national flag.

It is this balance between freedom and its limitations that our neighbouring country is finding hard to strike. Pakistan is an independent country and shares cordial relations with two of the strongest powers of the world — the US and China. The proximity with these countries can work miracles for its economy. Instead, it squanders these opportunities by trying to destabilise its neighbours and earns universal displeasure in return.

One may say that Pakistan is no better than hackers and virusmongers in this regard. The Internet is a medium where everyone has the freedom to give wings to their talent. But there are persons in this world who are destructively talented. In their zeal for oneupmanship, they put their talent to hacking and making viruses. Rather than create a garden better than Eden of his own, Satan finds joy in ruining the original verdure.

That freedom comes with restrictions is acknowledged even by the free marketers. Just as in mathematics know that you can add only when things are of the same nature. Two cats and three cats together make five cats. But two cats and three dogs can’t be added. So also with mergers in the financial world.

ICICI is free to merge with its subsidiary ICICI Bank. But before that it should meet the norms prescribed for banks. According to the Banking Regulation Act, no private bank can hold more than one per cent equity in any other bank. As such, ICICI will have to diminish its fairly large equities in Federal Bank and South Indian Bank. Then there are other prerequisites that need to be fulfilled. Cash Reserve Ratio (CRR) should be 5.5 per cent. Statutory Liquidity Ratio (SLR) should be 25 per cent. While priority sector lending should account for 40 per cent of the loans.

Or for that matter, the transition from FERA to FEMA. Doing away with regulations sounds good. But it’s not all that easy. So the govt has decided to bring back some of FERA’s stringent legal provisions.

Said Robert Browning: “If you get simple beauty and nought else/You get about the best thing god invents.” But this simple beauty in its nakedness tends to get sullied. So it needs to be dressed up. But the simpler the clothes, the better.