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Economic Highlights
Bihar That is India:POLL POINTER TO FUTURE POLITY, by Poonam I. Kaushish |
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POLITICAL DIARY
New Delhi, 14 January, 2005
Bihar That is India
POLL POINTER TO
FUTURE POLITY
By Poonam I. Kaushish
Want to know what is wrong with India. Visit Bihar. A State that epitomizes everything that is
immoral here. From corrupt netas to goons and criminals. Desh
drohis juxtaposed with private senas.
A gory account of muscle, money and mafia in politics. Down to the gutter level. Replete with blackmail, intimidation,
hustling and muscling. Behaving like the devil incarnate. Add to this the intoxicating
potent of power and one has a lethal mix.
Which has trashed morality and blackened the guarantee of good
governance. To hell with maryada.
If one were to do a post mortem of the no-holds barred
posturing by the Congress-led UPA constituents for the ensuing Assembly polls
in Bihar, it would expose everything that ails
Indian politics. The shameless, ugly and
raw exercise in power politics. The worst kind of chicanery and fraud by
Laloo’s RJD, Paswan’s LJP and the Congress.
Everybody is not only screwing each other but, worse, none has any sense
of shame of remorse. The Aya Ram’s and
Gaya Ram’s are all rolled into one. Never before has politics denigrated to an
euphemism for I, me, myself. Each party
propounding its own recipe of governance in the hope it will bring them
political tripti.
This is the tragedy of India. For the gaddi
of Patna would decide the raj and taj of New Delhi. Clearly, the polls has very little to do with
niti, in fact it’s all about raj-niti at its crassest worst. The
issue is not whether the Congress will better its tally in the State, continue
to rule the roost at the Centre or will the UPA survive. What is important is
Laloo and Paswan’s showing in the polls and its ramifications on the Central
Government. Will they becoming more
demanding? Indulge in bigger blackmail
et. al.. Bluntly, they will decide the mortality of the UPA since they control
the crucial swing vote. If that be the case, next month’s poll will be a
watershed in Indian politics.
Whatever may be the outcome the truth is that we are today
caught in a vicious circle which has been made a lot more malignant by our
unstable and fragmented politics. Not
just that. With every one propounding
his own recipe of governance, with the favourite recipe of communal harmony and
caste bhaichara, the nation is
getting sucked into the vortex of centrifugal bickering. Thus, from the periphery of competitive
politics, the regional parties are now virtually the lifeline for the national
parties. This social engineering through
the ballot will be the main stay of this election.
Bringing things to such a pass that who ever sits on Delhi’s gaddi can only do so with his regional
friends. For it is they who really control the vote-banks. In this political
cauldron of uncertainty, the important this election is giving the regional
parties is not without the grave ramifications it will have on the
unitary-federal structure of the State.
Raising a moot point: Is it not time we rethink our model of democratic
governance? Whether coalition politics is really the answer as India readies
itself to join the global fraternity? Or
should one change to a two-party system?
Even do away with the first past the post method and opt for a
proportional representation?
Recall our founding fathers grappled with this question at
the time of Independence. During the Constituent Assembly debate, it
was a toss between stability and responsibility. They had two models of
democratic governance before them. The American model which banked on stability
and the British example which opted for day-to-day-day responsibility. Nehru
was of the firm view that India
should follow Westminster
as opposed to the American model which could be misused and turned into a
dictatorship in the wrong hands.
Everything was hunky dory till the early nineties. Election after election the national parties
trampled upon the regional aspirations, seducing them with pious platitudes and
promises. But Mandalisation brought in a
new set of rules. Polarization on caste and community basis. This radically changed the structure of the
policy and consequently the nature of viable and effective alternatives, as
reflected in the plethora of 40-odd regional, small or minor parties first in
the poll fray and now in Government formation.
Whereby the regional blocks decisively proved that they were no longer
willing to play the second fiddle to any national party.
Paradoxically, the national parties’ loss of power provided
the perfect handle for the regional parties to blackmail, bully and extort
their demands, especially from the ruling party at the Centre. At the same time, they could pull the rug
over any issue, to expose the feet of clay of these parties. They intended and extracted their pound of
flesh. This extraction no doubt was made easier by the total collapse and
disintegration of the political moral fabric which had ripped asunder the very
nucleus of each and every national party to reveal the naked lust for power and
gaddi.
Arguably, one can say this is what democracy is all
about. But it needs to be noted that
most of these political formations which served as instruments of
democratization of society in a favour of the downtrodden and till now its enfranchised
sections are themselves completely undemocratic in their organizational set-up
as well as their style of functioning.
Given the dynamics of politics in the present fragmented state, there
will be an inherent compulsion for the parties to come together, so as to be a
recognizable force. Nothing objectionable. But when it comes to alignments,
there is a chasm between ideologies and objectives.
There is no gainsaying that the people have largely preferred
State level parties and small groups in several States to any of the national
parties. There is merit that regional
outfits are a facilitator for decentralized political authority. But their
disparate character and narrow political agenda carry an inherent and strong
destabilizing element, which can lead to recalcitrant parties or groups whether
singly or jointly holding the coalition and its Government hostage.
It has been exposed that when national parties cohabit with
strange regional outfits for all the strong reasons to attain power, they fail
to realize that it could end in an anti-climax. Tragically, national interests
have been wantonly dumped in quest of power.
It has nothing to do with ideology or taking the federal structure of
our polity a step forward. Forgetting
that federalism does not mean blackmail. Nor does the word coalition imply an
alliance with all and sundry – with anybody and everybody.
As long as the demands of a regional ally are only confined
to the development of concerned region, it is fine. But catapulted t the national
level of parties which lack national perception is not a welcome development.
At the same time, this is not to suggest that regional aspirations should not
be reflected at the national level.
Nonetheless, this has to be done by the parties keeping the overall
national interests in view. Sadly,
India’s regional parties are still dominated by the mohalla mentality. Where
reasoning does not percolate beyond what is good for the party, its immediate
sphere of influence typified by the mohalla
at the worst and the State at the best.
No doubt, the blame rests squarely on the national parties.
Where do we go from here?
No doubt, Bihar will stand testimony to the fact that power in privilege
stands further transformed through electoral competition into powering
numbers. True, numbers will decide who
sits on the Delhi’s gaddi. At the
same time, we need to realize that this cannot go on forever. Clearly, coalitions are neither guarantee for
stability nor solution for responsibility.
It is time we give serious thought to reverting back to a two-party
system at the national level. At best,
the regional outfits should be confined to ruling their respective States. Fragmentation of the polity is the root of
all ills.
Additionally, the first past the post method has proved to
be a misnomer of the poplar electoral mandate.
We have had absurd situations where parties which polled a lower
percentage of votes were in power. Nehru
at the height of his popularity polled only 43 per cent of the popular
vote. Today the Congress, which heads
the UPA Government, polled no more than 30 percent of the votes cast. Thus, it is imperative that the Election
Commission applies it mind to correct the anomalies caused by a multiplicity of
parties. One way would be to learn from
the German experience. Wherein the malady has been tackled by requiring every
party to meet a minimum benchmark of votes polled to qualify for recognition.
The writing is on the wall. This raj nautanki has to end. Remember an old Chinese saying: When small
men cast big shadows the Sun is about to set.
One is not worried about the small men. But the Sun setting on India is
too frightening a prospect to be taken casually. ---INFA.
(Copyright, India News and Feature
Alliance)
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Chak De India, Indeed!:MONEY MAKES TAMASHA OF SPORTS,by Poonam I Kaushish,26 April 2008 |
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POLITICAL DIARY
New Delhi, 26 April 2008
Chak De India, Indeed!
MONEY MAKES TAMASHA OF SPORTS
By Poonam I Kaushish
So much for Chak de
India! After the Shah Rukh Khan block buster which eulogised hockey, our national
game, to a winning high of sportsmen spirit and national honour, comes a
reality check. The underhand diabolical parde
ke peeche sordidness of berths in teams being sold for a few rupees and
more. That it smacks of everything that is wrong with Indian sport. Corruption,
bribery, parochialism et al.
The recent most kissa being
an exposure by a TV channel’s sting operation of the Indian Hockey Federation’s
Secretary K. Jothikumaran taking money to induct a player into the national team.
Leading the newly-appointed Sports Minister MS Gill to ask the Federation’s President
KPS Gill to resign.
Odd as it may sound, but it took a simple sting to confirm
what has been an open secret for years. The grip of greed over the game. Three
years ago, a national selector and former Indian captain, Aslam Sher Khan, quit
over KPS Gill and his cronies preparing a list of the team and then asking the
selectors to ratify it! Another hockey international, Gagan Ajit Singh, alleged
that complete unknowns were included in the national team.
Any wonder then that for the first time India failed to
qualify for the Olympics. In the last two Olympics too, we finished seventh. Worse,
India
could lose the chance to host the 2010 Hockey World Cup if we don’t improve our
performance.
Why only hockey? See how the IPL has converted the gentleman
game cricket into one big tamasha. Think of a fizzy cocktail of superstars, business
magnates, airline tycoons, glitterati and chatteratti, razzmatazz entertainment
topped by skimpily clad cheerleaders with their pom-poms specially flow in from
the US. Never mind that it stokes the baser instincts of the masses. Which has
replaced not only the saas-bahu
serials but also Bollywood films in the TRP ratings. Clearly, instant cricket
never had it so good.
Raising a moot point: Is this what cricket is all about? Is
this what the future holds? Today it is cricket, tomorrow hockey, football,
tennis and so on. Will it stump sports for ever? Arguably, the IPL has
‘globalised’ cricket. A heady mix of cricketers crossing international
boundaries. Showcasing cross-cultural encounters with Australian captain Ricky
Ponting hugging former Indian captain Sourav Ganguly. Something unimaginable two months ago when they
accused each other of unsporting behaviour during the Australia-India matches.
Besides, it is providing an opportunity for Indian players
to watch, learn and play alongside some of international cricket's
hardest-working stars. Players like VVVS Laxman, Yuvraj Singh and Harbhajan
Singh are in addition getting an opportunity to experience the responsibilities
and pressures of leadership. So what if monetary interests, rather than any
fondness for cricket drive the owners to gamble. After all it is about
developing the game and nurturing talent.
However, what happens to invoking the spirit of Mera Bharat Mahan? Needless to say the
IPL has come to symbolise some of the worst features of nationalism. Wherein
national rivalries now stoke regional bias and fuel city-centric hooliganism. Last
week’s altercation between Mumbai Indians Captain Harbhajan and Punjab Kings
Sreesanth are clear signs of how Team India compatriots are today’s arch
rivals. Interspersed with accusations and counter-accusations. So much for
calling it a gentleman’s game. A money-spinning machine is more apt.
In addition, isn’t it a strange site to see a crowd cheer
two Australians bowl out an Indian player. Already, fans are hooting for the colour of a
team’s dress rather than cricketing skills. Many fear that the game is being undermined
at the national level thanks to the bucks. Players today might be keener on
playing for the IPL rather than for the country. Not a few cricketers assert
that the IPL is too hot to be ignored no matter the national pride. Worse, it
has resulted in a moral debate. Parliament was rocked when political leaders
called the cheer leaders as "cricket's item numbers worse than bar
dancers" who are making a "mockery of cricket."
However, many viewers are perplexed. Which team do they root
for? Deccan Chargers with Andrew Symonds or
Chennai Super Kings with Dhoni? Who do they applaud? Australian Ricky Ponting
or our homegrown Banga bandhu
Ganguly? It is kind of absurd that we have Team India players like Sachin
Tendulkar, Rahul Dravid, VVVS Lakshman, Yuvraj Singh playing arch rivals
Happily, post the hockey fiasco and the IPL circus, Sports
Minister Gill, has declared that the sports scene was in for a major overhaul.
Towards that end he has put all sports federations on notice: they would be held
accountable for their sport's performance. However, these are mere symptoms of
a rotten system. The malaise is deeper and needs a complete overhaul.
One of the major problems is that we are not serious about
sports. We talk of sporting events as an aside. Nothing more than a
conversation point which sounds good. In keeping with our herd mentality we
follow the fads with the changing season. Today cricket may be fashionable,
tomorrow it may be football.
The problem is compounded by total failure of sports
management system, leading to bad planning. Candidly lamented Sports Minister
Gill: “The culture of sports has not been indicated in our youth. We have not
prepared the country on the importance of sports. Primary importance is given
to preparing the youth to earn a livelihood. Education is tailor-made to
emphasis studies as a stepping stone to a career as an engineer, doctor,
teacher etc.
“We need to offer sports as a career option. It teaches us
to be tolerant and inculcates a strong sense of nationalism. Where talent, not
terror is used to savour the fruits of victory.” Brave words indeed. How? To
make a start we have to wipe the slate clean. Like elsewhere, we have to follow
the dictum of “catch-them-young”. A concept which is not new to India. But was
dumped for reasons best known to the powers-that-be.
Leave alone training the youth, the coaches in India
themselves need to be trained to coach! Take, for example, swimming. The
Capital boasts of just one Olympic-size heated pool which can be used in winters,
the equipment is outdated, touch-pads, basic requisite to clock swimmers are
non-existent. There are no sports doctors to minister ailments or dieticians to
guide eating habits. After 60 years, we still have to come up with an advanced
scientific academy of sports.
The million dollar question: How will we rescue sports, be
it hockey or cricket from the Octopus-like grip of money and bribe? When will
we pull up our socks? A beginning has to
be made. Sooner the better or else we will say indeed Chak De India!---INFA
(Copyright, India News and Feature
Alliance)
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India-Iran Ties:us watches Ahmadinejad Visit, by Dr. Monika Chansoria, 1 May 2008 |
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Round The World
New Delhi, 1 May 2008
India-Iran
Ties
us watches
Ahmadinejad Visit
By Dr.
Monika Chansoria
(School
of International Studies,
JNU)
Iranian
President Mahmoud Ahmadinejad’s brief ‘working visit’ to New
Delhi as part of his South Asia
tour last month, was expectedly aimed at intensifying ties between the two
countries. Deliberations in numerous key sectors ranging from energy, the
Iran-Pakistan-India gas pipeline project, talks on two multi-billion dollar
energy deals and bilateral investments were on agenda.
However, the visit was shrouded with controversy even before
Ahmadinejad’s arrival in New Delhi.
The United States, which is
keeping a close tab on the Iranian President’s movement in South Asia, appeared
to be at unease with India-Iran ties as clearly reflected in the statement issued
by the US State Department deputy spokesman Tom Casey: “New
Delhi should urge Iran
to curtail its nuclear programme and to cease enriching uranium. India should also put pressure on Iran to become a more responsible actor on the
world stage and ask Iran to
end its rather unhelpful activities with respect to Iraq.” Casey was obviously pointing
towards Tehran’s support for promoting terrorism
in Iraq.
The American statement didn’t go down too well with the Ministry
of External Affairs. In its statement, New Delhi
sought to rebuke Washington by stressing, “India and Iran are ancient civilizations
whose relations span centuries. Both nations are perfectly capable of managing
all aspects of their relationship with the appropriate degree of care and
attention and neither country needs any guidance on the future conduct of
bilateral relations.” Obviously, indicating that Ahmadinejad’s trip had triggered
diplomatic barbs between New Delhi and Washington.
Further, Foreign Minister Pranab Mukherjee appeared to
placate Iran by suggesting
to the US that New Delhi has always
pursued an independent foreign policy. At the same time, not wanting the
statement to be a subject of annoyance with the Americans, Mukherjee said: “We
are advising Iran
that since it is a signatory of NPT, it has some obligation to international
treaties. We tell the US, do
not take on yourself the responsibility whether Iran was manufacturing weapons or
not.”
Ahmadinejad’s visit came at an opportune time for both
nations, since the past months were not exactly downy vis-à-vis bilateral ties
between Tehran and New Delhi. The former was apparently incensed
by India’s
vote against it at the International Atomic Energy Agency (IAEA). As a matter
of fact, India cast its vote
in 2005 in favour of a resolution finding Iran
in ‘non-compliance’ with its safeguards’ obligations under the NPT and
expressing ‘the absence of confidence that Iran’s nuclear programme is
entirely for peaceful purposes.’ Such statements indeed make it amply clear the
American pressure on India to
go against Iran
was critical.
Moreover, the findings are under Articles XII and III, of
the IAEA Statute, both of which mandate referral of the matter to the Security
Council and hold out a thinly veiled threat of sanctions and other punitive
measures. Reacting sharply to New Delhi’s vote, Tehran had threatened to reconsider its economic
cooperation with India
in September 2005. Ahmadinejad’s visit, however, was viewed as an opportunity
to iron out these differences with Iran.
India has ever-mounting demands for
energy. It imports over 70 per cent of its energy needs and desperately
searches for energy partners to secure new supplies of oil and gas from abroad,
other than revamping up domestic production to sustain its blooming economic
growth. New Delhi deems Tehran,
which has the world’s second largest known oil and gas reserves after Russia, to be a
long-term energy partner.
Furthermore, New
Delhi intends to revive a 2005 agreement that never
got implemented thanks to the rising price of oil dramatically soon after. This
agreement aims at importing 5 million tonnes of liquefied natural gas (LNG)
from Iran.
President Ahmadinejad’s visit might act as a catalyst in enhancing ties between
the two nations particularly in the energy sector.
The Iranian President’s visit could well have boosted Indian
state-owned ONGC’s chances of buying an equity stake in phase 12 of South Pars
block in Iran.
Apparently, Tehran has set a June 2008 deadline
for Total Company of France and Royal Dutch Shell to finalize a deal to develop
phase 11 and 13 of the South Pars or it would consider allocating the blocks to
other firms. In case of a failure of meeting the deadline by the
above-mentioned companies, India
holds a chance to grab the opportunity to develop phase 11 and 13 of the South
Pars block among other Asian companies that might be in consideration as well.
Another prominent issue that came up at talks was the
Iran-Pakistan-India gas pipeline project. The $7.6 billion project that would
eventually supply gas to India
via Pakistan
through a 1,615-mile pipeline was dubbed as the ‘Pipeline for Peace and
Progress.’ However, the project is unable to get past the jinx since it began
in 1994. The plan has been stalled by disagreements over pricing and transit
fees in addition to the incessant political discord between India and Pakistan.
New Delhi has been boycotting trilateral
meetings on the Iran pipeline
since mid-2007, citing that it wanted to first resolve the issues of transit
fees and transportation tariffs with Pakistan. The proposed pipeline
would initially carry 60 million cubic meters of gas daily to Pakistan and India, half for each country. The
capacity would, at a later date be raised to 150 million cubic meters.
It is, however, said that India
and Pakistan are expected to
be just ‘days or weeks away’ from finalizing terms for the cross-border
pipeline to import gas from Iran
following talks in Islamabad
on April 25. Following discussion on transportation tariff and transit fees,
both Petroleum Minister Murli Deora and his Pakistani counterpart Khawaja
Muhammad Asif told a joint press conference that: “We have agreed upon the
fundamentals of the agreement. The whole process should not take a long time,
may be few days or few weeks and the agreement will be concluded.” It appears
that, the meeting was well-timed as both nations realized that pipeline
diplomacy would likely be a core feature of the Iranian President’s visit.
Even though India
would ideally not want another nuclear entity in the neighbourhood, it is
likely to restate that Iran
has the right to peaceful use of civilian nuclear energy. Clearly, in its
dealings with Tehran, India is walking a tight rope since
it tackles the conflicting imperatives of domestic politics with its strategic
interests skillfully matching them.
Understandably, India
appears to be in a quandary over the US-Iran conflict where spiraling Indo-US
ties make it imperative for New Delhi to balance
its relations with Washington and a galloping
economy pushing it to forge collaboration with Tehran. Notwithstanding the growing American
pressure, particularly after the signing of the India-US civilian nuclear energy
cooperation agreement, brawny domestic constraints still loom large and prevent
India
from completely abandoning its ties with Iran.---INFA
(Copyright,
India News and Feature Alliance)
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Foodgrains For BPL Families:NDA STATES RUBBISH SONIA SERMON, by Insaf,30 April 2008 |
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Round The States
New Delhi, 30 April 2008
Foodgrains For BPL
Families
NDA STATES RUBBISH
SONIA SERMON
By Insaf
UPA Chairperson, Sonia Gandhi’s latest homily to the States
has been rubbished by most NDA and non-Congress Chief Ministers. Addressing a
rally near Malda, West Bengal on Monday last,
Sonia sought to absolve the Centre for the blame of price rise saying: “It is
easy to criticize the Centre, but it is imperative that the State Governments
fulfil their responsibilities. They should come down on black marketers and
hoarders and ensure availability of foodgrains through the PDS.” What is more,
she added: “If the funds are utilized without discrimination the life of the
people would improve”. But, Madhya Pradesh Chief Minister Shivraj Singh
Chauhan, for one couldn’t disagree more reflecting the general mood. He even
went on a 24-hour fast with his people on Wednesday to protest against the
Centre’s discrimination against the State and “continued indifference” towards
Bhopal’s pending demand for drought relief and allocation of foodgrains.
In a recent letter to the Prime Minister, the BJP Chief Minister
pointed out that while his Government was offering incentives to farmers to
procure more foodgrains for the PDS, the Centre was cutting corners. Its
allocation of 35 kg foodgrains per BPL family was barely enough for 41.25 lakh families,
whereas the number of families on the rolls totalled 62.5 lakhs. In addition,
the Centre needed to allocate 1.19 lakh metric tonnes of foodgrains per month
for the Above Poverty Line (APL) families. Worse, the allocation under APL was
much higher for Congress and UPA run States. In the first six months of 2007-08
Tamil Nadu had been allotted 14.50 lakh metric tonnes, Andhra Pradesh 11.37
lakh, Karnataka 6.90 lakh and West Bengal 3.6
lakh metric tonnes. In sharp contrast, Madhya Pradesh was allotted only 66,000
metric tonnes. Ally CPM, too has not been able to digest Sonia’s sermon. Commented Jyoti Basu: “Her words are not
important.”
* * * *
J&K Militants Secure
Voter I-Cards
The Election Commission (EC) has gone into a tizzy in its
preparation for the Assembly election in Jammu
and Kashmir this October. In an unprecedented
security breach, electoral photo-identity cards were found on the bodies of two
slain Pakistani militants in Handwara, Kupwara District, early this year. The
cards were genuine and not faked by militants, as the State police would have
liked to imagine. The names and address were correct, but the militants’ photos
were put on the I-cards. Obviously, stating that it was an inside job, by an
official in the electoral registration office (ERO). While one person has been
arrested, the EC has decided to put on hold issuance of any fresh I-cards. It
is to consider among other issues the possibility of whether it could replace
all 40-lakh cards, first issued for the 2002 election. A meeting with State
election officials has been called next week.
* * * *
Astrologers In Poll
Demand
Astrologers are having a field day in Karnataka as the State
moves towards its crucial Assembly poll, the outcome of which is anybody’s
guess. Those close to the Congress and the BJP have again predicted that their
best chance of defeating H.D. Deve Gowda and his sons, including former Chief
Minister, H.D. Kumaraswamy, is by putting up women candidates against them.
(Remember Deve Gowda lost the last Lok Sabha election from Kanakapura when
pitted against a Congress newcomer Tejaswini Sriramesh). Consequently, the
Congress has done two things. First, it fielded a woman candidate against Deve
Gowda’s elder son and former Minister H.D. Revanna. Now it has pitted former
Chief Minister, late Ramakrishna Hegde’s elder daughter, amiable Mamta Nichani,
against Kumaraswami from the Ramanagara seat. The candidate against Revanna is
one S.G. Anupama, daughter-in-law of the arch rival of Deve Gowda, late G.
Puttaswamy from Holenarasiapura. Meanwhile, Kumaraswamy has ended speculation
that he would contest from two Assembly constituencies in the first phase of
the poll on May 10.
* * * *
No Sex Education In
Maharashtra
Introduction of sex education in schools in Maharashtra is clearly a no-go. The Education Minister
Vasant Purkhe’s announcement that sex education would be made compulsory from
class IX in the next academic year was met with furore and strong resistance
from MLAs. Cutting across party lines, the Shiv Sena, BJP and NCP legislators had
the following to say: the move was a “western conspiracy to corrupt local
culture”, it would lead to “love gurus and sex gurus” being appointed and that
the “issue is against all religions and that children should not be corrupted.”
Sensing the members’ touchiness about educating students about the birds and
the bees, the Speaker Babasaheb Kupekar has asked the Government to put its
decision on hold and first consult educationsists, social activists and MLAs
who had studied the issue.
* * * *
Villagers Turn
Millionaires
Farmers are for once happily at the ‘receiving end’. A
village in Punjab is proof enough. Around 175
farmers of Jhurheri village, in Mohali have become millionaires overnight. On
Saturday last, they received cheques ranging from Rs. 4 crore to Rs 10 crore
from the Land Acquisition Officer. The whopping amount was “compensation” for
their lands acquired by the Government for extending the Chandigarh international airport. Interestingly,
the rate applied was Rs 1.5 crore per acre, the highest ever in the country! The
Government will disburse Rs 360 crore as compensation to a total of 222 farmers.
Life for some, who were finding it tough to survive on small chunks of land,
can now start afresh. In fact, perhaps for many others too, if only they would
cite this case if necessary.
* * * *
Workers Shortage in
Tea Industry
The tea industry captains in Assam are a worried lot. The
National Rural Employment Guarantee Scheme (NREGS) is cutting into their
workforce. Not only is the number of plantation workers falling, worse it is so
during peak plucking and pruning season (April-December). Two divisions of Chandipur tea estate in
Barak or Surma Valley had 400-odd workers this week, as
against a normal strength of 600-700 workers. The management realized that they
were among the 75 large tea estates which were facing a “NREG induced labour
shortage.” The reason being a Rs 30 difference in wages--while tea gardens pay
48.65 per day to plantation workers, the NREGS ensures Rs 77 per day. The
situation, according to an official of Indian Tea Association, is “getting out
of hand,” but is hopeful of tiding over the crisis.
* * * *
Camels Make It Good
Incredibly enough the camel is in the news—for reasons both
good and bad. The good news is that the camel has become dearer. The price of
the camel in the Thar Desert, over the years has gone up primarily for two
reasons: One, with the fuel prices escalating the animals are now replacing the
tractors in farm-rich areas under the Indira Gandhi
Canal system and are more
in demand. Two, its milk is an elixir, now a cure for diabetes. Thus, gone are
the days when the price a camel fetched was that of a goat. Instead, the
herders now fetch Rs. 1.5-2 lakhs for a camel. The bad news is that the camel
population is dwindling. In the 2007 livestock census it had come down to 4.30 lakh,
from 6.68 lakh in 1997 and 4.98 in 2003. But now that the camel is fetching
more, the demand for breeding the traditional ship of the desert is certain to
go up. Moreover, fewer would come under the butcher’s knife for its meat.
---INFA
(Copyright,
India News and Feature Alliance)
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Elusive SAFTA:OPEN MARKET TO SAARC NATIONS, by Dr. Vinod Mehta,29 April 2008 |
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Economic Highlights
New Delhi, 29 April 2008
Elusive SAFTA
OPEN MARKET TO SAARC NATIONS
By Dr. Vinod Mehta
(Former Research Director, ICSSR)
Fourteen SAARC Summits have been
held till date, but the South Asia Free Trade Area (SAFTA) is yet to take off! While ASEAN and EU are reaping the benefits
of a common market, South Asian countries continue to lag behind. Since the start
of our liberal economic policies we have been opening up our market to foreign
goods and investments, such as China
and South East Asia. While we have signed FTA
with Thailand,
SAFTA is still elusive.
This raises the question: what
should India
do? With Pakistan unwilling to extend the MFN (Most Favoured Nation) status, should
we keep waiting for it to act, or considering that India is a large country,
should it unilaterally become more liberal towards imports and investments from
small neighboring countries?
The relatively strained relations with
Pakistan, which are showing
signs of thawing, should not come in the way of trade and economic relations
between India
and other SAARC countries. Note that there is a huge potential for trade and
economic links with Nepal, Bhutan, Bangladesh,
Sri Lanka and Maldives. With its
elections over, Nepal
is likely to concentrate a lot more on its economy to fight the widespread
poverty and unemployment. As for Pakistan,
with the new civilian coalition government in saddle, its attitude towards India may too
change.
What about us? Well, at this stage
we can afford to be a bit more generous with our smaller neighbours. We need not become hyper-sensitive to being
labeled as ‘big brother’ by some quarters in these countries. Both territory
and population-wise, India
is relatively much bigger than all SAARC countries put together. In economic
terms too, India
is large -- one huge market perhaps the size of EEC.
Besides, its GDP is much higher than
its neighbours and at the moment India is enjoying a large and
comfortable volume of foreign exchange reserves that it hadn’t seen in the past
five decades. The Indian economy is growing at an average rate of 9 to 10 per
cent per annum, which is a reasonable rate of growth. Reasons enough for us to be
more liberal than what we had been in the past.
Apart from economic gains, India should
also aim to earn the goodwill of the people of these countries by being more
accommodative towards them. At the moment, Bangladesh
is having adverse trade balance with India. There should be no problem
for India
to allow duty free import of certain Bangladeshi products like jamdani sarees and hilsa fish. Already some retail outlets in Delhi
are selling biscuits from Bangladesh
which are as good as any Indian manufactured ones and have not posed any threat
to our producers.
In fact, India
could make similar gestures to other neighbouring countries especially Nepal, Bhutan,
Sri Lanka and Maldives and
allow their products to have an access to the Indian market in a big way. We
have no reason to get paranoid that the neighbours’ goods would flood our
markets. Their production bases are so small that it will call for huge
investment before they can produce goods on a scale, which can flood the Indian
market. In fact, following liberalization many Indian companies have shifted
their production base to some of these countries.
India’s external trade is today mainly
oriented towards the US.
The EEC and a few West Asian countries, and ASEAN would come second. As for
SAARC, the trade turnover between India and its member countries is
so small that it does not even attract attention in our annual Economic
Surveys.
A few years ago when we opened up
our economy, it was feared that cheap Chinese goods would flood the Indian
market. While this did happen in a big way, the Chinese had to beat a hasty retreat
as their quality was sub-standard. The Indian consumer refused to accept these even
though they were relatively cheaper. Compared to China,
our South Asian neighbours are small in every respect and unlike China would not
be able to dump their goods on the Indian market.
There are also many additional opportunities to expand
cooperation with the SAARC nations. For instance, the tourist sector within this
region has been neglected for long.
While tourism has a low capital investment, it is relatively a high-earning
potential. At one point of time, daily air services to link the capitals of all
the SAARC countries was under consideration. This idea could be revived. We should
learn from the ASEAN experience, wherein its capitals are linked by air and
they have special low airfares for travel within the countries.
This apart, wherever possible rail, road and sea links must
be strengthened among the SAARC countries. With Pakistan,
Nepal and Bangladesh we
can develop world-class road and rail links for speedy movement of both goods
and people. With Sri Lanka, Maldives and Bangladesh we can develop sea links.
India must also take a lead in admitting
more members. It may be a good idea to
allow other countries like Afghanistan
and Burma
to become full members, while Central Asian countries could be admitted as
dialogue partners. It is India,
which can take the initiative by lobbying with SAARC nations. And, if it calls
for amending the original SAARC charter, India should be able to carry other
members along with it.
Let’s take the example of Afghanistan. It is engaged in
reconstructing its economy and not only needs humanitarian aid but also trade. If
Afghanistan is admitted as a
member of SAARC it would be easier for countries like Nepal, Bhutan,
Bangladesh and India to send goods by road through Pakistan as the latter would find it difficult to
block transit facilities to Kabul.
Yet again, land-locked Central Asian nations like Uzbekistan, Tajikististan, Kyrghistan and Kazakhstan, too are looking for trade
opportunities through land routes with India. If they become dialogue
partners or associate members of the SAARC, it would again be difficult for Pakistan to stop the movement of Central Asian
goods to India, Nepal and Bangladesh through its territory and
vice-versa.
It is time India
becomes active in SAARC by winning over its small neighbours. Allow them some duty
free goods to India
which are of importance to them. Let these nations also share India’s higher
growth rate. For, India
will benefit by large trade turnover within the region in the long run. ---INFA
(Copyright,
India News and Feature Alliance)
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