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CourtExposes Kinks: PRICES, GRAFT ROIL ECONOMY, By Shivaji Sarkar, 15 April 2024 Print E-mail

Economic Highlights

New Delhi, 15 April 2024

CourtExposes Kinks

PRICES, GRAFT ROIL ECONOMY

By Shivaji Sarkar 

Innocuous developments are unfolding amidst the growing fervour of the impending elections. Despite concerns of the Reserve Bank of India regarding inflation, escalating toll rates, and transportation costs, the nation finds itself amidst a politically charged atmosphere. Nonetheless, certain court rulings are adding intrigue to the evolving scenario. 

In addition to the impact of electoral bonds, which have added colour to the political landscape and influenced prices, three other judgments are exerting significant influence. These include the Supreme Court’s hearings on the Voters Verifiable Print Audit Trail (VVPAT), commonly known as the voting slip; a judgment regarding the denial of payment to Reliance Infra for the Delhi Airport Metro EPL; and the severe criticism of Patanjali’s owners, who are contemnors of court orders regarding their advertising. These developments are intensifying the dynamics of the electoral contest. 

Not less interesting is the Enforcement Directorate’s (ED) mounting fresh money laundering probe into Chhattisgarh liquor scam and linking Kerala CPM leaders to bank fraud. Could there be more arrests even after Delhi Chief Minister Arvind Kejriwal and Kavita of BRS in Telangana? 

Will prices take a backseat to politics and court rulings, or will they remain pressing concerns alongside these factors? Voters, though reticent, are far from oblivious. Whether attending rallies of prominent leaders or not, they are keenly aware of every development that influences their lifestyle. 

Conversations range from questioning why individuals with questionable backgrounds align themselves with BJP to analysing defections from BJP to Congress factions. Both voters and party members evaluate the potential implications of each unfolding event, particularly returning officer of Chandigarh municipal polls and Himachal Pradesh defections. 

Corruption is not a non-issue. Arrests of select Opposition state leaders on corruption charges by central investigative agencies such as CBI, ED, and income-tax department are unlikely to change the general public perception that corruption pervades all political parties. Many view the pre-election arrest of Arvind Kejriwal as a strategic move aimed at thwarting the popular politician’s participation in the election campaign, rather than a genuine effort to address corruption. 

It gores them to think that possibly price surges of many medicines and commodities or galloping rise in tolls have the electoral bond connections. Former Vice President Venkaiah Naidu’srecent remark on corruption involving all parties has given it a new dimension for the voters to rethink the extent of the impact of the malady. The rising cost of education is troubling all, be it in cities or villages. 

Amidst the dropping of corruption charges against former Union Civil Aviation Minister Praful Patel, allegedly implicated in a Rs. 25,000-crore aircraft purchase scandal, questions arise as to why Delhi Chief Minister faces arrest for his alleged involvement in a Rs. 100 crore state liquor policy issue. People ponder whether the Air India sell-off was conducted transparently or mired in controversy. The action against Kejriwal has spurred Opposition unity, evident from the overflowing rally at Delhi’s Ramlila Ground. 

The recent Supreme Court decision concerning Reliance Infra’s Delhi Airport Metro's EPL has prompted questions about corporate exploitation of public sector Delhi Metro. The Court overturned its own 2021 order directing Delhi Metro to pay Reliance Infra Rs. 2782 crore, which had ballooned to Rs. 7686 crore with accrued interest. 

Chief Justice DY Chandrachud, along with Justices R Gavai and Surya Kant, justified this drastic action, citing a ‘miscarriage of justice’ resulting in an ‘undeserved windfall’ for Reliance Infra. This ruling, following closely after the electoral bond controversy, has heightened voter scepticism. Had Delhi Metro been forced to pay, it could have burdened commuters with significantly higher fares. 

Likewise, the court's rejection of Patanjali’s apology in a contempt case, stemming from misleading advertisements contravening its order, serves as a stark example of how the rule of law can rectify corrupt practices, unveil false brand images, and maintain price stability. The court’s warning to be prepared for consequences, along with its criticism of the Uttarakhand government, underscores the power of legal intervention. It can impact Uttarakhand polls. 

Erratic power bills and arbitrary demands in Uttar Pradesh and many states are also potential issues.Each of these cases, people realise, are instances of political linkages affecting price rise and profiteering. 

The glaring lapses on the part of the executive and administration add to the woes of the people and breakdown of the law-and-order machinery.The judiciary is uncovering corrupt practices that impact economic and administrative systems, consequently contributing to the rising cost of living. 

Media HouseDainikBhaskar has done a study on prices in Rajasthan. It finds that compared to 2019, prices of petrol, diesel and cooking gas increased by 42 percent; food items cost 34 percent more; medicine prices for diabetes and heart diseases rose by 54 percent and people’s dining outside has beenreduced by 40 percent. Pulses have become costlier by 20 percent, vegetables by 233 percent; taxi fares by 67 percent, edible oil 100 percent, FMCG rose by 60 percent. Salaries during the period for different classes have risen by 11 percent to 26 percent. 

RBI Governor Shaktikanta Das has expressed concerns about the imminent return of inflation in his inaugural monetary policy commentary. The Monetary Policy Committee’s statement highlights food prices as a major worry, despite a record kharif harvest, citing tight demand-supply conditions in pulses and vegetables that warrant close monitoring, compounded by climate shocks. 

The RBI projects growth to hover around 7 percent, potentially dipping to 6.5 percent next year, aligning closely with the IMF-World Bank forecast of 6.5 percent growth for India. A final picture is to emerge following the release of GDP data for 2023-24 in May. The declining rupee, decreasing foreign direct investment, and imbalance in trade are further indications of prevailing uncertainties. 

Price concerns persist, with numerous unnecessary infra, roadairport and metro projects shocking even political workers. However, this doesn't diminish the significance of religious fervour surrounding the Ram temple and Modi’s assurances, which remain potent issues in certain regions, albeit overshadowed by economic factors and caste considerations. Amethi and Raebareli, however, remain in focus, more than Varanasi. 

The Opposition, INDIA parties, are amplifying core issues, drawing attention to the populace’s unease with unstable living conditions. While this may have tempered their beliefs, faith remains resilient. Local dynamics, candidate profiles, specific issues, and party cohesion (or lack thereof) will likely shape outcomes in many constituencies more than any single central figure. The nation stands at a critical juncture.----INFA 

(Copyright, India News & Feature Alliance)

INDIA Bloc Unity: MVA PACT FOR BETTER OR WORSE?, By Insaf, 13 April 2024 Print E-mail

Round The States

New Delhi, 13 April 2024

INDIA Bloc Unity

MVA PACT FOR BETTER OR WORSE?

By Insaf 

Is it ‘one step forward, two steps back’ for Maharashtra’s MVA? After months of negotiations, the three partners finally made progress and sealed a seat-sharing pact on Tuesday. The INDIA bloc should be relieved with at least this united step forward, in the crucial state. But will it help achieve the cause -- of defeating the common enemy, BJP, or will it put the partnership further behind in the numbers game they thought they had made progress? Notably, Congress ‘strategically stepped back’ and dropped its claims on few ‘winning’ seats and went along with Shiv Sena-Uddhav Balasaheb Thackeray reasoning of the need to be ‘magnanimous.’ Of the 48 Lok Sabha constituencies, SS-UBT managed the biggest slice with 21 seats, Congress 17 seats, and NCP-Sharadchandra Pawar 10 seats. While Congress has assured supporting MVA candidates, it must be keeping fingers crossed no rebellion takes shape in Mumbai, Sangli and Bhiwandi as discontent is said to be brewing among local leaders. Besides, five years back, Congress had got 26 seats in its seat-sharing with NCP, but today has had to give up bigger space to the allies. 

The grand old party decided it was time to stop the back and forth and get down to campaigning as elections, in five phases, begin next week, April 19 till May 20. How it pans out is worth a watch as ‘entertainment’ is assured, not between breakaway SS and NCP groups (such as Ajit Pawar seeking support for his wife, against senior Pawar’s MP daughter in Baramati), but with MNS chief Raj Thackeray announcing his unconditional support for BJP-led ‘Mahayuti’ alliance, will address rallies in Modi’s support! While the alliance is happy as it lessens ‘possibility’ of vote cutting, MNS cadres are seeing red. Many have resigned in protest questioning Raj saheb’s U-turn after 2019 (a bitter critic of Modi since). Though the party hasn’t made a mark, Uddhav group takes an interesting dig saying an outfit ‘formed to safeguard Maharashtra pride backs its enemies.’ Applicable to it too, perhaps, but in the end it’s the voter who shall give the verdict whose their enemy.  

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Delhi’s ‘Agnipariksha’

The Delhi high political drama continues to hit front pages. Other than High Court upholding AAP Chief Minister Kejriwal’s arrest in liquor excise scam saying ED was left with “little option” after he skipped repeated summons, 24 hours later, his minister Raaj Kumar Anand resigned from both Cabinet and party. He alleged: ‘party is mired in graft and has no moral right to continue in government, and Dalits have no place in party and feel cheated.’ Instead of rubbishing it, AAP reacted: his action has ‘vindicated’ our stand that Kejriwal’s arrest was aimed at ‘finishing the party’ and BJP was using ED and CBI to “break our ministers and MLAs” (though Anand denies any ED pressure). Indeed, it’s ‘agnipariksha’ for AAP flock. Kejriwal has approached Supreme Court pleading for urgent hearing for his release by declaring the case against him ‘illegal,’ claiming his arrest is “an unprecedented assault on tenets of democracy, free and fair elections and federalism, both of which form significant constituents of basic structure of Constitution.” Convincing or not?   

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 Manipur Mood In Camps

A big question mark hangs over elections in conflict-ridden Manipur, particularly among the 50,000 internally displaced people in relief camps, of which 24,500 are voters. The N-E state which has boasted of 82% plus polling in 2019 elections, has several civil society groups asking the relevance of these elections and some even advocating a boycott. A common refrain being if the government can conduct polls during such times, surely it can find ways to bring peace and address people’s concerns, as the state continues to simmer after 11 months of the ethnic crisis. Reports originating say there’s ‘conspicuous absence of posters of political parties, mega rallies, and visible movement of leaders’ with elections next week (April 19) and 26. So far, only hoardings put up by local election authorities, urging citizens to exercise their franchise are visible. Will the State election office’s security arrangements with 200 companies of paramilitary forces, setting up of 94 special polling stations in relief camps and engaging in confidence building measures, change the mood and help heal wounds.  

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TDP No To Telangana

The Telugu Desam Party has decided to give Telangana a miss and concentrate on wresting back its turf in Andhra Pradesh. As a member of NDA, while TDP chief and former AP Chief Minister Chandrababu Naidu finalised seat-sharing formula for both Lok Sabha and Assembly polls in AP, not only is it not going to put up candidates in Telangana but is yet to decide whom to support there. Apparently, the going has not been easy for TDP after Naidu was arrested by AP police last September in a skill development corporation corruption case and though he got regular bail in November to carry out political activities, there wasn’t time to prepare for Telangana Assembly polls. However, he promptly sounded the poll bugle for AP with slogan “Quit Jagan, Save AP” and with his alliance now with BJP and JSP, urged the people to shower their blessings. His rival, YSR Congress Party President and Chief Minister Jagan Mohan Reddy, has been equally aggressive in his campaign and claimed ‘2024 would be last elections that TDP chief will fight’! Time will tell.  

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Qualms On  Christian Prayer Meet!

BJP-ruled Madhya Pradesh failed to play spoilsport for a prayer meeting of Christian community, thanks to the Supreme Court. The event in Indore under ‘National Prayer and Ministry Alliance’, had got initial permission but the administration revoked it after some Hindu outfits sought its cancellation. They complained it was being organised with ‘intent to mislead people of Hindu community and encourage them for conversion’ and there was ‘strong possibility it might disturb peace.’ The concerned police station submitted a report on law and order situation and the High Court when petitioned against the cancellation, rejected it saying the concern raised by respondents can’t be said to be “unfounded, looking to various objections they have received from other religious organisations.” But, on Wednesday the top court stayed the cancellation saying it was “unjustified”, the petitioner ‘will be entitled to hold the prayer meeting at 5:00 p.m. today’ (April 10) and directed its registry to convey the order “forthwith to registrar (Judl.), HC of MP, Bench at Indore, who shall communicate the same to collector, Indore”. It’s about time the state government limits itself. ----INFA

(Copyright, India News & Feature Alliance)

India-Greece Relations: BILATERALISM Vs MULTILATERALISM By Prof. (Dr.) D.K. Giri, 12 April 2024 Print E-mail

Round The World

New Delhi, 12 April 2024

India-Greece Relations

BILATERALISM Vs MULTILATERALISM

By Prof. (Dr.) D.K. Giri

(Secretary General, Assn for Democratic Socialism) 

India-Greece bilateralism received a new impetus in an international seminar, organised at Jawaharlal Nehru University early this week. The seminar was devoted to discussing various dimensions of India-Greece relations – history, tourism, culture, geo-politics, diplomacy, trade etc. In my presentation, while commending the initiative of augmenting bilateral relations, I raised the issue of the artificial dichotomy between bilateralism and multilateralism and the need to balance it. 

Pointedly, I referred to the European Union (EU) as a multilateral regional organisation which is by far the best example of regional integration. Yet, EU so far has failed in projecting its political personality to the world. The EU was created not only as an economic union, but a political player in promoting pluralism, democracy, human rights etc., the values the EU member countries dearly seek to adhere to. But there has certainly been a mismatch between these values and the trade policy they adopted. In particular, EU trade with China has been booming although the latter is universally considered to be an autocracy and a consistent violator of human rights. 

Likewise, the other multilateral bodies have failed in their objectives. The biggest of them all, the United Nations, which was created after the horrendous Second World War, to prevent the recurrence of wars, becomes a helpless onlooker as the wars in Ukraine and Gaza rage unabated. The UN certainly has unequal structures, namely the Security Council which is immobilised by the pernicious Veto exercised at will by any of the Permanent Five. The reform of structures and functions of United Nations is another debate we will not engage here. 

The point to note is if multilateralism is being infructuous, it is advisable to focus on bilateralism. At any rate, while multilateralism in a globalised and an inter-dependent world should be aspired for, bilateralism lays out the building blocks. What has been happening is that the quest for multilateralism has downplayed bilateralism. It is, using the popular metaphor, missing the trees for the forest. The India-Greece bilateral efforts should correct the fault line in contemporary geo-politics. 

On India-Greece relations, Amrit Lugun, who served as Indian Ambassador to Greece, narrated the developments between the two countries from during his time and till today. He informed that the long historical link between two countries is reflected in a Greek psyche even today. The former Lt. General, Philip Campose, a strategic expert, made a meticulous presentation of contours of bilateralism. 

The bilateral relations got a shot in the arm in August 2023 when Prime Minister Narendra Modi visited Greece. He was doing so after 40 years of visit by an Indian Head of Government to Greece. Also, significantly, the bilateral cooperation was elevated to a strategic partnership during this visit. Campose attributes this sudden shift to strategic partnership to a response to the growing trilateral relationship between Pakistan, Azerbaijan and Turkey. The strategic partnership is a logical extension to the said response as Greece has stood firmly with India on the Kashmir issue and encountering Pakistan-sponsored terrorism. 

The second push to India-Greece relations came from the visit of Greek Prime Minister Kyriakos Mitsotakis early this year as the Chief Guest on the Republic Day parade as well as the keynote speaker in the Raisina Dialogue. He made a strong case for deepening India-Greece relations. He said, “India could not find a better gateway than Greece to Europe and Greece will have no better gateway to Asia than through India”. He asked for working on IMEC project – India-Middle East-Europe Corridor despite the war in Gaza. The Greek PM’s attitude and statements pointed certainly to the acceleration of relations between India and Greece. 

Building India-Greece relations should certainly invoke the rich legacy of history involving both countries. It goes back to 326 BC when Alexander invaded India. The historical anecdotes suggest that Alexander, a great fighter, had to retreat in the North-West of India when an Indian king paraded the elephants on the battlefield. The legend has it that an Indian king from Punjab offered his daughter in marriage to Alexander to buy peace. That sets a matrimonial relation between Greece and India. Likewise, many Greeks came to India as soldiers or traders and settled down forever in this country. 

There is evidence of Greek art and architecture in Indian society and civilisation. In India and ancient Greece, there were similar allegories and analogies, particularly in Plato’s Phaedrus and the Katha Upanishad. The image of the chariot in Phaedrus portraited the structure of an individual’s soul whereas in Katha Upanishad, it is used in order to describe an individual’s structure. There were also maritime trade contracts of Graeco Roman world with South India. The Greek Indologist Dimitrios Galanos lived in India for 47 years and breathed his last in 1833 in Banaras. He translated Indian Vedic texts into Greek language and produced a Sanskrit-English-Greek dictionary of 9000 words. 

Currently, India and Greece need each other in their mutual interests. Greece is a high-income economy and India is a growing economy with a huge workforce and potentially the largest market in the world. The bilateral trade is low at the moment but has the potential of growing manifold. Greece is a member of European Union and NATO, two powerful bodies, economically and militarily, while India is the most populous country in the world and spearheading the Global South. India would need Greece to counter China’s influence in the Mediterranean region, for access to her port and shipping industry and a market, both Greece and EU for its exports. 

Likewise, Greece would need India for its tourism sector, expertise of Indian companies, investment in privatisation of public assets and a market for goods produced in Greece. The future road map for bilateral relations should consist of cooperation on defence and security issues, connectivity between two countries, cooperation in ecological security, skilled manpower migration, joint trainings by army, navy, air force and special forces and developing inter-operability and cooperation in key areas of special interest to both countries. 

That said, the elephant in the room is, as usual, China. One of the Greek participants asked for India’s reaction to China having a port in Greece, Port of Piraeus, as India is also in the process of acquiring a port. The answer to that question is, it is for Greece to decide whether it would open its strategic space to an autocrat like China “posing a systemic threat to the world” (Germany’s stated view). The West – America and the European Union - have created China almost like a Frankenstein. It is time they decide whether they should neutralise the Frankenstein or feed it to become stronger. India will inevitably counter China, Greece and the European Union have to decide whether they will correct the mistakes of the past or continue with it in regard to dealing with China.---INFA 

                      (Copyright, India News & Feature Alliance)

CORRUPTION, CBI AND VIGILANCE, By Inder Jit, 11 April 2024 Print E-mail

REWIND

New Delhi, 11 April 2024

CORRUPTION, CBI AND VIGILANCE

By Inder Jit

(Released on 12 January 1988) 

The Central Vigilance Commission’s latest report should make all those interested in good, clean Government sit up. The report was presented to Parliament over a month ago. But it has not yet received the attention it deserves --- either from the Government leaders and MPs or from the media. This is despite the fact that the Central Vigilance Commission (CVC) was set up amid great expectations by Nehru and Lal Bahadur Shastri in February 1964 in pursuance of the recommendations of the Santhanam Committee on Prevention of Corruption. Many of us have been expecting the Commission to be made more effective under Mr Rajiv Gandhi, who has spoken time and again of an all-out war against corruption. On July 24 last, the Prime Minister asserted that the drive against corruption would be intensified at the administrative and social levels. Sadly, however, this has not happened. On the contrary, even the limited effectiveness of the CVC has been undermined and its functioning hamstrung. This has constrained the Commission to conclude its 23rd report relating to 1986 with the warning: “Any lukewarm approach to vigilance would be a short-sighted, penny-wise and pound-foolish policy.” 

To begin from the beginning. Under the terms of the Government of India resolution of February 11, 1964, moved by Lal Bahadur Shastri the CVC was assigned three functions: (i) To have complaints of misconduct or lack of integrity on the part of public servants looked into and thereafter as may be necessary to advise as to the disciplinary proceedings or prosecution to be launched. Where disciplinary proceedings are held, the Commission also advises the disciplinary authority about the penalty to be imposed, based on its independent and impartial appreciation of the outcome of the disciplinary proceedings. (ii) The Commission has been given the responsibility of exercising a general check and supervision over vigilance and anti-corruption work in the Ministries/Departments and Public Undertakings etc. and for that purpose receives from administrative authorities progress reports and statistical returns. And (iii) When it appears that any procedure or practice in administration affords scope for corruption or misconduct, the Commission may advise that such procedure or practice should be appropriately changed. 

Importantly, the Commission has been given the same measure of independence and autonomy as the UPSC. Its jurisdiction extends to all employees of the Central Government, Central Public Sector Undertakings and other Corporate bodies. However, ordinarily the Commission advises in individual disciplinary cases only in respect of Gazetted officers of the Union Government, SHOS of the Delhi Police; the officers in the pay scales beginning with Rs 1800 and above in the public sector undertakings; officers in Scale III and above in public sector banks, the officers in the scale of pay the minimum of which is Rs 1,760 or above in Port Trusts/Dock Labour Boards; the officers in the scale of pay the minimum of which is Rs 2,250 or above in the insurance companies and those drawing a basic pay of Rs 1,000 p.m. or above in local bodies or autonomous and other similar bodies. Equally importantly, the CVC is actively aided by the Central Bureau of Investigation which was set up about the same time to help investigate corruption on a systematic and organised basis. The CVC may on its own direct the Central Bureau of Investigation (CBI) to investigate complaints and furnish reports. 

Things worked out well at the start. The “19th Year of Freedom”, an Indian National Congress publication brought out in 1965-66, claimed that “the anti-corruption measures initiated during the last two years have had a significant impact. Many State Governments have taken similar steps and the drive against corruption appears to have assumed the dimensions of truly national effort.” The CVC achieved much with the help of the CBI, which undertook many overdue probes. But the CVC now finds that it is no longer getting much-needed help from the CBI, originally conceived as the principal tool at its disposal. The reason? The CBI, according to the report, has of late been increasingly busy with cases of conventional crimes, economic offences, smuggling etc. Consequently, the CVC has bemoaned in its latest report that the special investigative body has not been able to give its whole-time attention to anti-corruption work for which the organisation was primarily set up. Indeed, the CVC has not stopped there. It has candidly expressed the view that “there should be a body, exclusively charged with anti-corruption work, to do greater justice to this work.” 

Appropriately, the Commission has, over the years, kept a close vigil over the public sector undertakings in view of the huge national investment and the spread of their industrial and commercial activities. Surprisingly, however, a brake was applied on this activity by the Bureau of Public Enterprises in October 1986. It issued instructions that in future vigilance cases of only Board-level appointees of public sector enterprises need be referred to the CVC for advice. It said: “In respect of appointees below Board-level, no reference need be made to the Central Vigilance Commissioner”. The reason for the change, according to the CVC, appears to be that since the Board of Directors was the appointing authority for below the board-level personnel, they should have the power to take disciplinary action against such personnel. But this stance overlooks the fact that the role of the CVC has always been advisory and does not in any way interfere with the independence or autonomy of the public sector undertakings and of the disciplinary authority to take final decision even in vigilance matters. The advisory role of the CVC had never been incompatible with the ultimate decision-making authority of the disciplinary authorities. 

The report points out: “The cases are not few where those responsible for running the undertaking were themselves involved in financial rackets or that they had shielded those under them responsible for grave misconduct and wastage of public funds for personal benefit.” Independence and autonomy, the CVC asserts, should not “be construed as licence for malpractices and corruption”. Thus, the public sector, which is responsible for most of the public spending, “should not remain outside some central vigilance overseeing and accountability to proper norms of public conduct”. The role of the CVC for overseeing vigilance work as an external advisory agency, if anything, “need to be further strengthened, particularly in the prevailing situation when malpractices and corruption of a serious magnitude continue to haunt the public sector”. The very existence of an independent central vigilance agency has a preventive value besides providing the public sector with such benefits as independent professional advice on vigilance matters and uniform standards for handling vigilance work. 

The decision to limit the role of the Commission vis-a-vis the public sector undertakings not only violates the terms of reference of the Commission as contained in the Resolution of February 1964, but also the spirit behind the creation of an Independent Commission. The Commission is firmly of the view that “this decision of Government would lead to a big set-back in tackling the problem of corruption in public sector undertakings and it is a retrograde step”. In fact, the Commission feels that there is clear need “to strengthen the vigilance set up qualitatively as well as quantitatively in order to keep a watch over corruption prone areas and corruption prone persons especially in the public sector undertakings where large investments have been made”. It finds that the attention paid to vigilance work so far in some of the public undertakings is “totally inadequate”. The department of vigilance, in its view, has to be accepted as an integral part of sound management for improving the financial health and practices of the organisation. “If vigilance units in the public sector undertakings are headed by officers of experience and integrity, they would be able to provide valuable assistance in improving procedures and practices and plugging loopholes in the system, if any.” 

The Commission’s report draws attention to many other points: Evidence of a new five-star culture and ostentatious living in the public sector. Administrative constraints faced by the CVC, including the long-standing need for additional staff over the years. But the Chief Vigilance Commissioner, Mr U.C. Agarwal, is clear that corruption at the administrative level cannot be eliminated without tackling it at the public and political levels. Early in 1986, Mr Agarwal, in a talk delivered to the Association of Indian Diplomats, listed some of the causes for the fall in standards of integrity and efficiency in public administration as follows: “The general social climate has become highly materialistic and no scruples or ethical values worry the people in going ahead. The spread of materialistic culture has become so widespread that all is considered to be fair in making money. No means appear to be questionable. The emphasis appears to be more on ‘making’ rather than ‘earning’ money. There are increasing number of cases of vulgar display of wealth by the socially high-ups in their style of living, housing and social functions.” 

Alas, little has been done to fight corruption at the political level. What is worse, a solemn promise made for fighting corruption remains to be implemented. On August 25, 1985, the Rajiv Government came forward with its eagerly-awaited Lokpal Bill to provide for the appointment of an ombudsman to enquire into allegations of misconduct against public men and public servants and wanted it enacted in two days. Following protests in the Lok Sabha against rushing through with this important legislation, the Bill was referred to a Joint Select Committee of Parliament. The Joint Committee was asked to submit its report by March 1986. However, this did not happen. Instead, the term now stands extended up to early May this year… the last day of the Budget Session of 1988. All in all, the powers that be need to be clear about what they want to do. The CVC’s report, which lays emphasis on preventive vigilance, is a timely reminder of the gap between practice and promise. The issue raised in it needs to be discussed in Parliament. We should remember that Parliamentary democracy is a civilised form of Government. It cannot survive the depredations of a corrupt administration and corrupt politicians. --- INFA

(Copyright, India News & Feature Alliance)

Unemployment Challenges: CREATION & QUALITY VITAL, By Dhurjati Mukherjee, 10 April 2024 Print E-mail

Open Forum

New Delhi, 10 April 2024 

Unemployment Challenges

CREATION & QUALITY VITAL

By Dhurjati Mukherjee 

Providing jobs is indeed a big change for a populous country like India with a huge number entering the labour force every year. Moreover, with improvement in education, not just general education but technical too, there is an abundance of job seekers in the country. As usual, guarantees, not just promises, are made during elections by political parties but there is no direct mention of how much employment opportunity would be created. 

The “India Employment Report 2024: Youth education, employment and skills” by the Institute for Human Development (IHD) and International Labour Organisation (ILO),recently released presents extremely concerning facts on India’s labour market over the last decade. Each year, around 70-80 lakh youths are added to the labour force but between 2012 and 2019, there was almost zero growth in employment – just 0.01 per cent. 

The Reportexamines the challenge of youth employment in the context of the emerging economic, labour market, educational, and skills scenarios in India and changes over the past two decades and is primarily based on analysis of data from the National Sample Surveys and the Periodic Labour Force Surveys. It found that 60 per cent of casual workers across the nation find themselves denied the minimum wage they are entitled to. “As much as 62 per cent of the unskilled casual agricultural workers and 70 per cent of such workers in the construction sector at the all-India level did not receive the prescribed daily minimum wages in 2022”, the report stated. 

Labour economist Ravi Srivastava, one of the key figures behind the Report, highlighted the systemic exploitation faced by unskilled workers contracted through intermediary entities. These workers often find themselves short-changed as contractors siphon off a portion of their earnings, leaving them deprived of even the basic minimum wage. 

Highlighting the scarcity of quality job creation in higher productivity manufacturing and services post 2019, the report found that though there was a notable shift in employment from low-productivity agriculture to relatively high productivity non-agricultural sectors, the first two decades of this millennium, the momentum slowed and ultimately reversed between 2019 and 2022. An important point made in the report is the lack of employable skills, but doubts have been raised on this issue as work-oriented skills are being imparted, both by government and private institutions all over the country. It is the demand constraint that is the key factor in job creation.   

As rightly pointed out by Srivastava and several other experts better quality jobs are concentrated among youths with a high level of education. It may also be pertinent to mention here that this education, which is mostly imparted from very well-known private institutions, are very costly and beyond the means of a major section of middle-income groups not to speak of the low-income segments. Thus, quality employment has been concentrated among the rich class who can afford high quality education to their children. 

Another report of the ILO says  “83 percent of jobless Indians are youth, only 17.5 percent of youth in rural areas are engaged in regular work, the share of people employed in industry and manufacturing has remained the same since 2011 at 26 percent of the total workforce, the percentage of youth involved in economic activities decreased from 42 percent in 2012 to 37 percent by 2022. 

The Congress, highly critical of BJP has stated, “Modi government promised 20 crore jobs in past 10 years but snatched 12 crore jobs from the youth”. It’s also alleged the youth unemployment tripled under the Modi government. In its just released manifesto, Congress  haspromised minimum wage of Rs 400 per day, employment guarantee in urban areas and Rs 1 lakh with apprenticeship to every graduate and diploma holder for one year. The BJP is yet to release its manifesto. 

Theproblem of underemployment is also related to MGNREGS programme, which is only for 100 days a year but poor allocation by the Centre can provide employment for not more than 50 days. It is necessary to ensure that this programme should provide at least say 125-150 days’ full employment, keeping in view the critical situation in the job front, the government could levy a super-rich tax of one percent to meet the additional expenses. 

Experts have rightly pointed out that the minimum the government can do is to increase the allocation for the above programme and also start a similar programme for the urban sector. There are many jobs that are neglected in the cities that include waste collection and recycling, helping in road repairs, keeping parks cleaner, etc. Even after the recent hike in rates of MGNREGS, these are less than the minimum wage of around eight important states. The well- known social activist, Nikhil Dey, has pointed out that the minimum wage remaining lower that the state minimum wage meant denial of basic standard of living to the MGNREGA workers. 

In this connection, it may be pertinent to refer to a stark reality that found millions of women work in Indian households out of which over 67 percent have been employed without written contracts, while 77 percent face violence and 85 percent have no social security, leading to a web of exploitative conditions that is masked by informality. The official figures, a cruel mockery of reality, thus miss up to 45 million workers. This vast discrepancy, reflecting the informal nature of the work, hinders efforts to monitor violations and enforce legal protections. Government initiatives, such as the e-Shram portal for informal workers, have failed to make any headway. 

According to the Periodic Labour Force Survey, over 80 percent of these women journey from rural areas seeking better economic prospects. Around 70 percent of these women fall in their prime working years and yet find themselves stuck in a low wage informal sector. It is debatable whether India’s economic progress can stand on the broken backs and the bruised spirits of these women. 

As regards high-end jobs, reports indicate that in the current year placements in higher educational institutions recorded anywhere between 35 to 55 percent. In addition to fewer offers from companies, there are reports of lower salary packages. In fact, the impact of the global scenario on the educational sector in the country is quite visible with most government and private institutions reporting around 20-25 percent drop in recruitment. One can find many post-graduate students in management or engineering without suitable jobs as most of such candidates do not want to accept a job which offers a salary below Rs 20,000-25,000.  

The situation is thus quite challenging, and the government is silent on how it envisages creation of employment opportunities.Technology-driven manufacturing with artificial intelligence expected to play a crucial role in the coming years obviously goes against employment creation and is indeed a crucial problem for a populous country like India with a huge workforce. It is imperative that with educational levels increasing the government just cannot ignore this vital sector and must come out with an effective plan of action. But before all this, recruitment in the government – both at the Centre and in the states – needs to be given top priority.---INFA 

(Copyright, India News & Feature Alliance)

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