Modi needs a Vajpayee.

Modi needs a Vajpayee.

Commentators, including Ashutosh Varshney (IE.25/12), have missed the significance of Modi's win in Gujarat. Growth of Indian economy and the expansion of the middle class that happened after the liberalisation has whetted the appetite for more opportunities in the country. There is an escalation of aspiration especially among the young. They do not want freebees; they want opportunities to reach their aspiration. That is what Modi has provided in Gujarat. He invited industries. He provided power, industrial peace, road infrastructure, law and order, a non-rent seeking bureaucracy and the political class. This is what Shekhar Gupta says (IE,18/12). Modi  has changed the discourse of politics from identity politics ( both religious and regional) and freebees to development politics. Good governance in Gujarat has covered Muslims as well. It is reported that almost 25 percent of Muslims have voted for Modi which is as much as for Nitish Kumar. However, surprisingly, rather not so surprisingly, the commentators have still not changed the discourse. No doubt, his candidature for the top post in Delhi is likely to galvanise Indian politics. It is the commentators who need Vajpayee's wisdom which was expressed by him in a few words, 'country is more important than ideology'.

http://www.indianexpress.com/news/modi-needs-a-vajpayee/1049766/

December 26,2012

******

The insensitive state.

Insensitive state.

The brutal lathi charge, tear gas and water cannons used against the peaceful demonstration by students and youth of Delhi ( Injustice League at Raisina Hill, DNA,23/12), who were demanding better security for women, by police makes one wonder whether we are a democratic state or a police state. It was a spontaneous demonstration in response to the heinous rape in a bus, by the young who are afraid of their own safety. It was not organized by any party or any student union. Surprisingly, rather not surprisingly, no minister, not even a police officer met them to hear what they have to say. And we call ourselves a democratic republic. This is not the first time that the police and the elected 'rulers' behaved this way. Once they are elected, politicians behave like old rajas or sultans. The police at the instance of ministers put many hurdles when Anna Hazare organised meeting to mobilize people against corruption. Worse thing happened when Swami Ramdev spoke against black money kept in foreign banks. He and his followers were lathi charged at midnight when they were sleeping.

The insensitive nature of the state is also revealed by the report, " When VIPs around, 5578 cops protect 1.3 cr citizens" (DNA,21/12). Mumbai has a police force of 33,998 while the sanctioned force is 41,401. If the elected politicians are really representatives of the people, why do they need so much security ? No wonder rapes and murder are increasing but the detection and conviction rate are falling. There is an urgent need to sensitize the politicians and the police about the safety and security of the citizens. Media, citizens, NGOs and the corporates have to take up this issue at every level.

December 23, 2012.

********

Politics without principles.

Politics without principles.

Kudos to Munjul ( Daily News and Analysis, December 8) for the
excellent cartoon on FDI in retail. UPA did not show the same
commitment for anti-corruption bill. Such a bill
would have thrown many politicians in jail. The move seems to be more
political than economic just as in the case of Indo-US nuclear deal.
Just like the nuclear deal, FDI may not fulfill the hopes raised by
the frantic effort to pass the FDI in retail. PM just want to get
approval from the New York Times, the Economist and the Time magazine
who derided him as 'under-achiever'.

It is not just SP, BSP and DMK but Congress in Kerala and NCP in
Maharashtra have reservations about the move. That UPA tried these two
moves by manipulating the majority makes one feel doubts about the
commitment of the Congress for the democratic norms.

Mahatma Gandhi had mentioned 'Politics without principles' as one of
the seven social sins. This is the best, rather the worst example, of
sociaI sin that Gandhiji referred to. I wonder how SP, BSP and DMK can
justify abstaining or voting for FDI in retail to the people and their
own followers after denouncing in same in their speeches in parliament
and demonstrating against it.

Multi-brand retailers such as Wall-Mart are famous, rather notorious,
for 'squeezing' the farmers as well as small enterprises and
'predatory' pricing for the consumers. A recent example was the fire
in a garment factory in Bangladesh where these brands access their
products with a very thin margin for the manufacturers who could not
afford proper facilities to their workers.

India has a very good example of milk co-operatives like Amul ( The
Gujarat Co-op.Milk Federation) which ensures fair return to the
farmers and fair price for the consumer. Similar effort by vegetable
and fruit farmers would have made India a pioneer in this field. Even
a co-operative by small traders could have been encouraged so that
nobody would be displaced. But this requires a visionary like Mahatma
Gandhi. It is easy to follow the beaten track set by the West which
many there decry for their greed and unfair employment practices.

December 8, 2012.

*******.

FDI in retail - A second gamble of UPA.

FDI in retail - a second gamble by UPA ?

UPA , during its first term, took a gamble with its move to get
support from its alliance partners and outside supporters for the
Indo-US nuclear pact as most of them were not convinced of the need
for the same. The government was able to get it passed in the
parliament. However, the pile of currency notes put on the table of
the house by the members of the parliament has raised some questions
which have not been answered up to now. During the discussion in the
house, the government told us that this nuclear deal would bring
energy security to India and reduce carbon footprint. All this faded
after Fukushima disaster and the reluctance of suppliers of nuclear
reactors to take liability in case of nuclear disaster. A recent
special report by the Economist on Nuclear Energy was entitled, " The
dream that failed" (March10,2012) and concluded that the role of
nuclear power may never be more than marginal.

This time UPA is taking another gamble on FDI in retail. The majority
of the members are not convinced that it is in the interest of the
country as it is likely to reduce employment in the unorganised trade
sector without bringing in marked improvement in the agricultural
sector - reduce the gap between the farm-gate price and the consumer
price and prevent wastage of fruits and vegetables. Some have
questioned how FDI in retail can set up cold storage chain when there
is power shortage all over the country ? How can there be job
increase when efficiency requires automation ?

The government expects FDI in retail will bring in a revolution in
food production - fruits and vegetables - which it has failed to do it
in the last 20 years through the Ministry of Agriculture, agricultural
colleges and universities. There is a distrust of foreign capital,
especially in agriculture on which more than 60 percent of our
population depends.The Indians still remember that the British came to
India for trade and stayed here for 200 years. Some have ideological
reason. They believe that private capital and profiteering go
together. Whatever the reasons, the fact remains most of the political
parties do not support FDI in retail. The government is now engaged in
breaking the opposition with carrots and sticks. The government is
seeking support from parties which have opposed Indian big business
entering this sector. Some members of these parties have damaged and
destryed stores run by them in UP, West Bengal and Kerala.

Foreign investment in India has been a mixed blessing. FDI in
automobile industry has expanded the choice to the Indian consumer and
strengthened ancillary industry. However, it has failed in power
sector. Enron produced most expensive electricity in the country and
had to sell its operations to the state. The PM told Indians that
nuclear power would help in solving the power shortage. But not a
single nuclear power palnt has come up in India as people are afraid
of radiation ( the Japanese experience is fresh in the minds of many)
and have opposed proposed plants in Ratnagiri in Maharashtra.
Monsanto's cotton Bt seeds increased the cotton yield immediately but
now the farmers have to use more pesticides. Another report states
that declining yields, higher input costs, and crop failure caused by
delayed monsoon pushed farmers into debt and suicide.

As far as FDI in retail is concerned, there are conflicting
assessments. It can reduce wastage and the number of intermediaries
between the farmer and the consumer benefiting the both. However, it
can also eliminate neighborhood stores and will not lead to employment
generation. The critics have pointed out that if the multi-brand
retail has not helped even the American farmers as they are being
given massive subsidy of US $ 307 billion under the US Farm Bill 2008
for five years. It is the same in the OECD countries. Farmer's income
has fallen down everywhere. Farmers in Scotland have formed " Fair
Deal Food" to seek higher price for their produce. They have also
pointed out that these stores pay lower salaries and lower benefits to
their employees. These stores are accused of 'squeezing' the farmers
and 'predatory' pricing.

India has more than 1.2 million retail outlets with a turnover of US$
400 billion, it employs 7.2 percent of workers and provides jobs to
33.1 million. Wall-Mart also has a turnover of US$400 billion but
employs only 2.1 million. Multi-brand retail may be good for the
middle class but not to the people in general.

India should find its own solution to meet its needs which is
integrative and inclusive. Here is an example.The Gujarat Co-operative
Milk Federation ( GCMMF) which processes 10 million liters of milk
from 3 million farmers across 15,000 villages. " We didn't need any
foreign capital or expertise to accomplish this. Besides, we involved
the community instead of excluding it" says R.S.Sodhi, managing
director of GCMMF which popularized the Amul brand. He says 80 percent
of the money consumers pay for milk goes back to the dairy farmers as
against 30-35 percent in the US and EU.

India has to encourage Indian entrepreneurs to launch similar
enterprises which makes use of the present retail outlets. Let the
associations of retailers access fruits and vegetables directly from
the farmers, refrigerate it and distribute it. There are many experts
in all these fields in the country. The government has to formulate a
comprehensive plan and create a conducive tax regime. The GCMMF and
other similar co-operatives could be mandated to enter this field as
they have direct contact with the farmers. In five to ten years there
would be a new model of development - inclusive of farmers and the
retailers.

The telecommunications and software revolutions in India were ushered
in by Indians. The retail revolution can also be led by Indians. Now
the ruling establishment wants the foreigners to lead it. We seem to
be going from one extreme to another - after Independence, it was
socialist pattern of society where private sector and foreign
investment were look down upon. Now we want everything from foreign
countries. Gandhiji and Nehruji must be turning in their grave!

November 28,2012.

*********

Balasaheb's mixed legacy.

Balasaheb's mixed legacy.

Sreenivasan Jain (DNA,19/11/12) is right that Shiv Sena's decline started
1999 as it failed to give good governance to the state. Maharashtrians
gave a mandate to Shiv Sena-BJP coailition government in 1995 but it
failed to make any difference to the state. At the fag end of the term
it built Mumbai-Pune Express Highway and a number of fly-overs. It
conceived the Bandra-Worli bridge but could not finish it. It promised
to give houses to slum-dwellers but could not initiate it. It revived
the expensive gas-based power project of Enron initiated by the
Congress which became the white elephant of the state. Shiv Sena-BJP
alliance has been in power in Mumbai for many years but have nothing
to be proud of – pot-holed roads, garbage continues to be a problem,
municipal education in dire straits etc. Shiv Sena and all other
parties have failed to get justice for the mill workers.

However, Balasaheb roared like a lion on behalf of Maharashtrians who
were marginalized in the city's life – political, social and economic
– due to historical reasons. There has been improvement in these
spheres for the Maharashtrian youth in the city. That is why many
lakhs of people came to bid farewell to the Saheb.

November 19,2012.

******.

Probity & Accountability of the rulers.

CAG Vinod Rai is right ( I.E.,Nov.8). Our rulers have become
appallingly brazen as far as accountability and probity in public life
is concerned. We all remember Lal Bahadur Shastri who resigned after a railway accident.
Now we have ministers who would not resign till they are
charge-sheeted.

It is high time that CBI and CVC are freed from the government
control. They should be under a parliamentary committee's control or under the
Supreme Court so that these institutions are not misused by the ruling party to
benefit it supporters and harass the opposition parties.
Accountability and probity are as important in a democratic system as
periodic elections and majority rule.

Another report on the same day explains how an imaginative IAS
officer, Alok Kumar Singh, has transformed the small town, ,Ashrafpur
Kichaucha, a model of good governance. It is to be hoped that this
would be duplicated in our towns and villages.

Vinod Rai and Alok Kumar Singh give us hope for a better India.

November 9,2012.

******.

Naipaul & Karnad.

Naipaul & Karnad.

The report, " Karnad slams Naipaul" (The Indian Express,3/11/12) makes
sad reading as one
writer condemns another for his views on history, and this in a
democratic country which values freedom of expression. V.S. Naipaul,
who has a special attachment to India due his Indian ancestry, has
written extensively on India after meeting many ordinary Indians and
visiting various parts of India. After visiting Hampi, where one can
see the destruction of a great city, he writes that the Indian history
books mention invasion of India by Persians and Afghans who happened
to be Muslims as the 'arrival of Islam' as if they were some tourists..
All that he points out is that these invasions have not just destroyed
cities and temples but the inquisitive and innovative spirit of India.
Indian people
have became more conservative and defensive. This may or may not be
accurate but it is his view or his interpretation. Of course, it is
almost opposite of what the Indian government and its historians have
been telling us in our schools. In a democratic country issues of this
nature should be discussed dispassionately rather than criticize the
views." I do not agree with you but I will defend your right to hold your
views" sums up the democratic spirit.Can his views on Indian history
be held against him as a great writer of our time ?

November 4,2012.

******.

Elements of Good Governance.

Elements of Good Governance

Two commentaries, one by RK Raghavan and the other by Rakesh
Bhatnagar, in Daily News and Analysis ( October 29,2012,) highlight
the importance of good governance in bureaucracy and in the delivery
of justice. The civil servant is the servant of a democratic state
based on the principles of a republican constitution, not of the
government of the day. His allegiance is to the constitution, not to
the minister. However, as Raghavan has pointed out, " Honest civil
servants are browbeaten either into gross wrongdoings or utter
passivity." This has to change if we want to have an honest
administration in the country.. A civil servant has every right to
refuse unlawful orders which are mostly given orally. It would be good
idea to pass a law which codifies the duties and responsibilities of a
civil servant into a oath of office which should be administered to
him when he assumes his office, and to be repeated when a new minister
is sworn in. Of course, our legislature may not pass such a law. It is
for the people to take it up with an appeal to the President, the
Prime Minister, the Parliament, and if nothing happens, with an
agitation.

As Bhatnagar has mentioned there are 76 election petitions challenging
the results in the polls between 2010 and 2012 pending disposal at the
high court level while the Representation of People Act requires that
these should be disposed of within six months.

It is time that people concerned with the democratic functioning of
this country come together and prepare norms of good governance, and
support those parties who agree to implement them when they come to
power after the next election.

October 29,2012.

*******

FDI - Is it a magic wand ?

Recently, the PM Dr.Manmohan Singh announced the new FDI policies in retail, airlines, power exchanges and broadcast sector as a big bang reform initiatives to push the Indian economy faster.The two analytical pieces (India Abroad, Sept.28) by Shreekant Sambrani and M.R.Venkatesh provides the other side of the FDI coin. In his analysis, Shreekant Sambrani rightly says that the policy predictability, fast project clearances, encouragement to investment, containing inflation, fiscal consolidation and improving current account deficit are far more important than FDI itself. Venkatesh has some pertinent questions - How FDI in retail can set up cold storage chain when there is power shortage all over the country ?  How can there be job increase when efficiency requires automation ? How 30 percent local procurement from small scale industries go with quality of goods ?   

The government expects FDI in retail will bring in a revolution in industry and agriculture which it has failed to do it in the last 20 years, if not 60 years. There is a distrust of foreign capital in India due to historical reasons ( The British came to India for trade) and also ideological reasons ( socialist mind-set promoted since Independence). The new initiatives of the PM  have brought most of the political parties together against the UPA hastening the general election earlier than its scheduled time in 2014. It appears that the PM wants to go down on an economic issue rather than on the many scams which have been exposed under his watch.

Foreign investment in India has been a mixed blessing. FDI in automobile industry has expanded the choice to the Indian consumer and strengthened ancillary industry. However, it has failed in electricity. Enron produced most expensive electricity in the country and had to sell its operations to the state. The PM told Indians that nuclear power would help in solving the power shortage. But not a single nuclear power plant has come up in India as people are afraid of radiation ( the Japanese experience is fresh in the minds of many) and have opposed proposed plants in Ratnagiri in Maharashtra. Monsanto's cotton Bt seeds increased the cotton yield immediately but now the farmers have to use more pesticides. Another report states that declining yields, higher input costs, and crop failure caused by delayed monsoon pushed farmers into debt and suicide.

As far as FDI in retail is concerned, there are conflicting assessments. It can reduce wastage and the number of intermediaries between the farmer and the consumer benefiting the both. However, it can also eliminate neighborhood stores and will not lead to employment generation. The critics have pointed out that if the multi-brand retail has not helped even the American farmers as they are being given massive subsidy of US $ 307 billion under the US Farm Bill 2008 for five years. It is the same in the OECD countries. Farmer's income has fallen down everywhere. Farmers in Scotland have formed " Fair Deal Food" to seek higher price for their produce. They have also pointed out that these stores pay lower salaries and lower benefits to their employees. These stores are accused of 'squeezing' the farmers and 'predatory' pricing.

India has more than 1.2 million retail outlets with a turnover of US$ 400 billion, it employs 7.2 percent of workers and provides jobs to 33.1 million. Wall-Mart also has a turnover of US$400 billion but employs only 2.1 million. Multi-brand retail may be good for the middle class but not to the people in general.

India should find its own solution to meet its needs which is integrative and inclusive. Here is an example.The Gujarat Co-operative Milk Federation ( GCMMF) which processes 10 million liters of milk from 3 million farmers across 15,000 villages. " We didn't need any foreign capital or expertise to accomplish this. Besides, we involved the community instead of excluding it" says R.S.Sodhi, managing director of GCMMF which popularized the Amul brand. He says 80 percent of the money consumers pay for milk goes back to the dairy farmers as against 30-35 percent in the US and EU.

India has to encourage Indian entrepreneurs to launch similar enterprises which makes use of the present retail outlets. Let the associations of retailers access fruits and vegetables directly from the farmers, refrigerate it and distribute it. There are many experts in all these fields in the country. The government has to formulate a comprehensive plan and create a conducive tax regime. The GCMMF and other similar co-operatives could be mandated to enter this field as they have direct contact with the farmers. In five to ten years there would be a new model of development - inclusive of farmers and the retailers.    

There is no magic wand. It is a long haul. Politicians have no time for that as the next election is coming.

reign Direct Investment - Is it a magic wand ?

September 27,2012.

*******

                                 

India lacks vision.

India lacks vision.

India lacks vision, not ruthless pursuit of China, as mentioned by Sumit Ganguly, in his interview with Faisal Kidwai (India Abroad, Sept.14).

India followed the Soviet-type planned economy dazzled by the quick industrialization introduced by the Soviet Union, and killed the Indian enterprise which had built not merely cotton textile mills but steel mills as well during the unsympathetic British Raj. This ushered in the infamous ' permit-license' raj. All that it produced was measly 3,5/4.0 percent GDP growth till 1990. It was forced to change statist economy to liberal economy due to foreign exchange crunch which resulted in an average of 7.5 to 8 percent GDP growth for the next 20 years.

State capitalism became crony capitalism. This is apparent from the interview of Hansraj Ahir, an MP from the coal center,Chandrapur, in Maharashtra(India Abroad,Sept.14). Coal was allotted to companies which had no experience and no connection with the sector who later sold it to others at huge profit. This is just the repetition of the 2G scam. Ganguly mentions ' lack of transparent regulatory and investment climate'. That is indeed the crux of the problem. Free enterprise can benefit people only when it follows rules and regulations which are fair for all. Coal, like spectrum, is a scarce resource and the government can get its fair share only when it is auctioned. That is what CAG ( the Comptroller & Auditor General) said. And that is what the Supreme Court said in the case of 2G spectrum.

The UPA government lacks the vision to garner resources for the uplift and empowerment of the poor. India has the largest number of poor in the world. The health and education indicators in India are abysmal. All this in spite of more resources coming into the kitty of the government due to the rapid growth of the economy. All that UPA can think of was rural employment scheme which assures 100 days of work which has benefited the landless in spite of considerable leakage. However, no permanent assets are created by this program.It looks like a dole to get votes.

Neither state capitalism, nor crony capitalism is the answer to the poverty of the Indian people. Trickle-down theory does not work. India has to have bottoms-up strategy. Its development strategy should be village-centric. Prime Minister Rajiv Gandhi initiated constitutional amendments to decentralize power but this has not been implemented.

Every village should have a primary school and a primary health-care centre. A cluster of village shoud have secondary and high schools where modern agricultural methods should be taught as 60 percent of the people depend on it. Vocational education should be made available for landless labor. With the decay of villages, people flock to cities and towns to live in slums. Small farms should be made more productive and farmers' cooperatives should be organized to market their produce. The villages could be self-sufficient in power through bio-gas and solar power. India is blessed with 300 days of sunshine.

Anna Hazare has built a model village in Ralegoan Siddhi with rain-water harvesting in a rain-shadow region. Dr. Abdul Kalam, former President of India, has proposed a scheme to improve the living conditions in India - PURA, providing urban facilities in rural areas with multiple connectivity. This is what Mahatma Gandhi envisaged for India - village republics which produce the basic necessities of life. The village life should be made productive, dynamic and satisfying. This is the vision bequeathed by the Mahatma.

China is following the state capitalist system which has failed the people of the West - search for resources and market all over the world, industrialization with pollution, energy-intensive life-style. This does not lead to a peaceful, equitable and harmonious world order. Additionally, China has stifled the voice of the people and it is human beings who create value. What is the use of winning the world if you lose your soul ?

September 13,2012.

**********

A challenge and an oppotunity to build a better world.

A challenge and an opportunity to build a better world.

The loss of human lives in the Sikh Temple (Gurudwara) in Oak Creek, Wisconsin on August 5, is a challenge and an opportunity for all people to ponder over the future of our world. That this crime has been condemned by all in the USA and world is an indication that the we all respect human life. This tragedy should be used to create a better world.  

The world has become one, thanks to transport and telecommunication revolutions. All religions proclaim the fatherhood of God and brotherhood of Man. All countries, especially democracies, have enshrined liberty of religion, thought and expression in their constitutions and guaranteed them through legislation. In spite of all this, why hate crimes are committed in most of the countries ?

The cause of strife and wars were well diagnosed by UNESCO ( United Nations Educational, Scientific and Cultural Organisation) in its preamble in 1946 itself. Throughout the history of mankind the ignorance of each other's ways and lives has been the main cause. It leads to suspicion and mistrust between the peoples of the world. "Since war begins in the minds of men, it is in the minds of men that defenses of peace must be constructed", it added. It means that there should be constant efforts to educate and inform people about the culture, civilization and ways of life of other people and other countries to remove ignorance, suspicion and mistrust.

It is very heartening that this has been recognised by Congressman Ed Royce in his interview with Aziz Haniffa ( India Abroad, Aug.17) : " I will continue to push to make sure we do a better job of teaching in the schools that the motivation for people traveling to the new world from the onset of this country forward, has been to protect religious diversity, freedom of religion - which is the cornerstone of this country."  This has been supported by Tejinder Singh Bindra, the president of the Sikh Art and Film Foundation when he wrote, " Many people who have attacked Sikhs are blue collar. They do not watch CNN or read books on other religions, and the American schools, I fear, do not do an adequate job of letting students know enough about other faiths and traditions."  By educating the young on other faith traditions, USA can set an example to the world.

Now the real challenge and also an opportunity to all governments and the educational authorities in the world is, how to educate the general public about other faiths and traditions. It may be a good idea to include the high ideals of UNO and various religions of the world in the curriculum in all schools and colleges to remove the ignorance of other faiths and the prejudice against other ways of life. UNESCO could be requested to prepare books on all religions with the help of the people who follow them. UN should ask all its member states to prescribe them in all schools and colleges. This is necessary if we want to unite the human race and build a better world as envisaged by the United Nations.This is the basic groundwork for that goal. And 'catch'em young' would be the right way to reach the goal. Only then nobody in the world would ask the question, " Am I my brother's keeper ? "

August 23, 2012.

******                

A tale of two cities : London & Mumbai - Similarities and Contrasts.

A tale of two cities : London & Mumbai - Similarities and Contrasts.

When I read a special supplement on London entitled, On a high, by the Economist of London (June 30th 2012), a few weeks before the London Olympics, I was struck by the similarities and the contrasts between the two cities,London and Mumbai.

The similarities : (a) London and Mumbai are trading and financial centres.

" London was invented by foreigners" says the Economist. The Romans established a colony on a bend on the Thames in 43 AD but was burned down by Boudicca, the leader of the Iceni tribe, after 17 years. However, it grew later attracting foreigners for trade as it offered safety from the feuding European continent. Voltaire observed in the 18th century that the Jew, the Mahometan, and the Christian trade among themselves as if they professed the same religion.

London is the centre of politics, administration, business and fun since the 11th century. It became great during the Victorian Age when industrial revolution and the empire boosted its economy. " Raw materials from the colonies were shipped into the docks and the manufactured goods shipped out." The banking system channeled savings into productive enterprises all over the world.

London's economic decline started after the war. The docks, the city's core industry, were destroyed by the container ships which were too big to reach the docks, and the militant unions. And its revival started with the deregulation of the City's financial services in 1986 which made it one of the world's great financial centres. This has once again attracted large number of foreigners who have brought funds and skills, and promoted employment.  
       
Mumbai, as we all know, was conquered by the Portuguese, but later on, it was gifted to the King of England as a dowry. The British built the port, the court, colleges and university, hospitals, museum, joined the seven islands, invited traders and industrialists to build textile mills, allowed reclamation and created the famous Marine Drive, the Queen's necklace.

Mumbai's decline started when the textile mills lost their competitive edge due to government policies and the militant trade unions. Most of the mills were closed and some of them shifted to other states.The port too lost its importance due to the establishment of ports in the neighbouring states, and the new container port on the mainland opposite the city. However, it has retained its leading role as the financial centre of India with the Reserve Bank and many other commercial banks, and financial institutions such as Bombay Stock Exchange (BSE),National Stock Exchange ( NSE), Security & Exchange Board of India (SEBI) and many mutual funds. It could become one of the leading financial centre of the world if India can create the same legal framework that London has.
 
( b) A rich mix of population :

London is a mini-world as it has attracted money and talent from all over the the world : the Koreans are in New Malden; the Portuguese in Stockwell; the Arabs in Bayswater; the Turks, Kurds and Turkish in Cypriots Haringey, Hackney, and Islington; the Bangladeshis and Pakistanis in Tower Hamlets and Newham; Indians in Southall and Wembley; the Jamaicans in Brixton, and the Nigerians in Peckham.

The report mentions that the Huguenots came in the 17th century, Jews at the end of the 19th, the West Indians in the 1950s and 1960s and the South Asians in the 1970s and 1980s. Now they come from everywhere.

Mumbai is a mini-India and one can see people from all over India in concentrated in certain areas of the city.  Dadar, Worli and Parel areas  have a large Maharashtrian population;  Matunga has many people from South India ; Vile Parle and Ghatkopar residents are predominantly Gujaratis ; Chembur has many Sindhi housing societies ; Bandra is a big centre of Catholic population ; Crawford Market, Bhendi Bazar and Santa Cruz have Muslims in large numbers ; Malabar Hill and the surrounding areas are populated by Parsees; Goregaon and Mulund have great concentration of people of U.P. and Bihar; many Sikh families reside in  Andheri, and Punjabis stay in Juhu and many other suburbs.

This population mix has given both the cities certain dynamism and some conflict as well.

Surveys in London have revealed that migrants are better employees, more highly skilled, work harder and are prepared to to do jobs that locals disdain. Almost the same can said about Mumbai as well. People from all over India have contributed immensely to many fields like industry, financial services, film, theatre, media, fashion and advertisement in Mumbai. Distribution of newspapers and milk, selling of vegetables and fruits, and many other services which are essential for a city are served by a large number of people from all corners of India.

No wonder, some times this generates some conflict. The report mentions the riots against Jews in London in the 13th century, against Flemish in the 14th century and  against the Italians in the 15th century. The recent ones are the Notting Hill riots against the West Indians in 1958 and the latest riots in 2011. While there were no records about any earlier conflicts in Mumbai, recent agitations are well-known - against the South Indians in the early 'sixties and against people from U.P. and Bihar a couple years ago.  

The report states that London's openness to the rest of the world had four broad effects - it has pushed up the real estate prices, made the city less equal but more productive and more efficient. Much the same thing can be said about Mumbai.

There is one more similarity. London subsidies the rest of the country to the tune of $ 23 billion. It has been said that almost 25 percent of the revenue of the government of India is collected from Mumbai - foreign trade, corporation tax etc. However, this figure may be inaccurate in view of the fact in the recent decades many new ports have reduced the volume of foreign trade through Mumbai port, and most of the companies have their production facilities elsewhere while paying corporation tax through their head offices in Mumbai. In spite of this, the fact remains that Mumbai Municipal Corporation is the richest municipal corporation in India and its revenue exceeds that of the some of the state governments of India.

Now, the contrasts :

Both London and Mumbai have almost the same problems - Transport, Housing  and Administration. While London is making efforts to solve these problems, Mumbai seem to groping in the dark - the darkness of corruption and inefficiency.

(a) Transport : The report states that London had the best transport system 100 years ago, but now it is inadequate.The London Underground and the London Overground have improved in recent years with the funds from the government after they were handed over to the mayor.

London's roads are also clogged with cars. To reduce the traffic in central London, a congestion tax has been imposed. This has reduced traffic by 20 percent.  Some roads have been reserved for pedestrians, pavements have been widened and the traffic-lights have been changed in favour of pedestrians. Increased public transport, introduction of cycles and bikes on rent for the city are being is being discussed. There has been an increase in the charges for digging up the roads for utilities. Almost 40 percent of the traffic lights can sense the length of traffic and adjust the timing accordingly which allows 12 percent more traffic to flow.

In Mumbai, the suburban railways have been able to improve the system to a certain extent with funds from the World Bank and the Central government. Similarly, the BEST has increased its fleet. However, this has not given much relief to the passengers or the pedestrians. Millions of people in Mumbai use train and bus transport, and they have to streamlined to provide a rapid and smooth transport system. The rapid bus system should be implemented. Pedestrians should be provided with footpath unhindered by hawkers, and hawkers should be provided with hawking zones in every ward. An autonomous transport authority should be created to coordinate all modes of transport and to deal with all issues pertaining to the movements of goods and people.

(b) Housing : " High house prices make life difficult for Londoners and threaten the city's prosperity", the report observes. This is true of Mumbai as well. Foreign money is financing new housing development in London while in Mumbai it is the big money from all sources, and in both the cities, money in housing is for investment, not for stay. The builders and the politicians have ganged up against the people to raise prices of housing in Mumbai. The scarcity of land has aided this price rise. The builders had sabotaged the bridge/ tunnel  to mainland three decades ago for this purpose. This issue is still pending due to vested interest of the builders'  lobby.

The biggest constraint for housing development in London is the Green Belt all around the city to the extent of 50 miles. This has raised the cost of housing and forced the workers to travel further. The report suggests that a mile off from the Green Belt would release 25,000 hectares, one-sixth of London area for housing. The report proposes discouraging people from buying a second house and increasing taxes to bring down housing prices.

Mumbai has more intractable problems in the housing sector. There are cessed buildings some of which fall down regularly during the monsoon. The development of cluster of buildings demolishing old dilapidated structures have not taken off. Then there is a large population in slums which are ruled by slumlords with political support. Many cities in the world including Singapore have been able to remove slums and build houses for the poor, but our elected representatives both, in the Municipal Corporation and the state legislature, are unable to do much about it. They do not look for solutions but only for votes and power.Slum redevelopment schemes are mired in corruption and controversies. This issue requires to be entrusted to an autonomous body with proper mandate to solve the problem on the basis of the experience of the other cities in the world and needs of the poor.

These two issues take us to the most important ingredient of successful city, and that is, city administration.

(c) City Administration :

The Economist credits the institution of elected Mayor for the improvements that London has seen in recent years : " Institutional, as well as intellectual, change helped. In 2000 London got an elected Mayor - the first time the whole sprawling city had a single official to think about its well-being." The first Mayor, Ken Livingstone, introduced congestion charge, and the second, Boris Johnson, created cycle bank to encourage people to abandon their cars.

Mumbai too needs change, not merely in its institutions but also in its attitude, to solve its civic problems. The citizens of Mumbai are denied even the basic civic facilities  - uninterrupted water supply, uniform power tariff, smooth roads, daily collection and disposal of garbage etc.

Mumbai too could have an elected Mayor provided we have politicians with vision.  It is difficult to find such individuals among our politicians. Some years ago Mumbai had an institution called, ' Mayor-in-Council' but it failed to make any mark.

Most of the power in BMC is wielded by the Municipal Commissioner (MC) and the Standing  Committee (SC) and this power structure has not provided proper civic amenities to the citizens of Mumbai.This structure must be reinforced with some expertise in good governance and accountability. For this purpose, MC & SC should be assisted by an expert committee on civic issues selected by a panel consisting of the Chief Minister, the Leader of the Opposition and The Chief Justice of the High Court. To strengthen the financial integrity, an autonomous audit body to be appointed by CAG ( Comptroller & Auditor General of India) which has to present its report to BMC, the state government  and the citizens of the city. Elected representatives should be made accountable.

The concerned citizens and NGOs of Mumbai should agitate to bring about these changes in the administrative set-up to ensure accountability and good governance. With this, Mumbai could rival London. There would be more similarities than contrasts. It would not be just a tale of two cities but a tale of Mumbai being one of the great cities of the world.

August 21, 2012.

********                        

   

               

Reflections on the Indian Independence Day.

Reflections on the Indian Independence Day.

India will be celebrating its 65th Independence Day on August 15,
2012 with army parades, floats on Indian heritage and economic
development of the country - all this in midst of the looming drought
in many parts of the country. India's economic, social and political
developments are a mixed bag of achievements and glaring lack of will
to tackle problems confronting the country, especially the poor.

The achievements.:

Democracy & Food Security : India's achievements are well-known. A
democratic set-up which has weathered the storms of dictatorial
mind-set ( the 19-months emergency regime ) and many challenges to its
unity ( the rise of sub-nationalisms with political tact and
accommodation). It has banished famine. Just now it has 80 million
tons of food-grains in its buffer stock, thanks to increased
irrigation facilities, hybrid seeds and fertilizers introduced since
the Green Revolution. The country has come a long way from the famine
conditions in 1965-66 when India had to depend on US wheat imports to
feed its teeming millions.

Economic Growth, Technology and Defense: It is one of the few
countries which has mastered the space technology. It is one of the
leading countries in software sector.Today it one of the fast-growing
economies of the world after the change of direction of its economic
policies from the statist to encouraging free enterprise initiated
in 1991 by the Prime Minister P.V.Narasimha Rao and ably implemented
by the finance minister Dr. Manmohan Singh. It has also joined the
select few in the world with its own nuclear technology and atomic
weapons with which USA and other countries have nuclear agreement. The
Prime Minister Atal Behari Vajpayee courageously exploded and
stockpiled a few atomic weapons to ensure India's defense in a region
full of these weapons. The decade of the 'nineties took India to the
top table.

The failures.

While the achievements are significant, economic and political
problems are persistent. These have been summed up by the President
Pranab Mukherjee in his speech delivered on the assumption of office
on July 25: poverty ( 'For our development to be real the poorest of
our land must feel that they are the part of the narrative of rising
India'); corruption ( 'Corruption is an evil that can depress the
national mood and sap its progress') ; terrorism ( 'The war against
terrorism is the fourth '(world war).

Poverty : Among the most important problems of the country is the
persistence of poverty in the country. While the experts and
economists discuss the poverty line, whether it is Rs.28.65 or
Rs.22.42 per day, whether it should be related to caloric food intake,
infant mortality rate, education, health or employment, all are agreed
that more than one-third of the population, which would be about 400
million, are poor. A recent report states that ten percent of rural
people live on less than Rs.17 per day. " Trickle-down theories do not
address the legitimate aspirations of the poor", as the President
pointed out in his address. All the policies implemented by the
successive governments have failed to uplift the poor. They are still
not the 'part of the narrative of rising India'.

The latest policy of offering 100 days of work for the poor under the
Mahatma Gandhi Rural Employment Guarantee Scheme is riddled with
design faults - it does not create any permanent asset, it does not
train the uneducated for any job, and full of corruption - not paying
the workers in full and in time, the local politicians in league with
the officials manipulating the workers' attendance to enrich
themselves. There are no proper checks and balances, there is no
efficient monitoring and there is no transparency. Moreover, you can
build a nation on doles. There is a certain lack of vision.

There has to be a policy to empower the poor with various training
programmes. The small landholders should be able to get more returns
from their holding with proper advice from the agricultural experts.
The landless should be trained in some profession or job which can
extend from brick-lying to electrician which every village, town or
city requires. Recently, the government has set-up a skill development
corporation under the guidance of one of stalwart of software
industry.

Mahatma Gandhi was right. India lives in its villages. He dreamt of
village republics as self-sufficient in most of its needs. He believed
in self-reliance,decentralisation of political and economic power to
empower the poor - to remove tears from the eyes of the poor, as he
put it. His vision is now being appreciated by many as global warming
is becoming a global menace due to the energy-intensive lifestyle
which creates demand for more goods. He said long ago that there is
enough in the world for everybody's needs but not for everybody's
greed. President Abdul Kalam, a visionary like Mahatma Gandhi, has
put forward a plan to uplift the villages called, PURA,( providing
urban facilities to rural areas) with multiple connectivities (
knowledge, technology, marketing etc.) This is in tune with the vision
of Mahatma Gandhi.

Corruption : Corruption is a universal phenomenon to realists and
cynics but to the poor, it is a curse. People have to pay for every
legitimate government services such as issuing a ration card, getting
a birth or a death certificate, registering a FIR ( First Information
Report) in a police station, getting admission to a school, getting a
water connection and others of similar nature. Madhya Pradesh and
Bihar governments have now made it mandatory to provide these services
within a time-frame with a fine for defaulting officials.

The recent scams such as 2G spectrum sale, Commonwealth Games Scam
and Coal-fields allotments were just the tip of the iceberg of
corruption in India. The corruption has a long history in India going
back to the jeep scandal during the early years of our freedom. Many
well-known politicians were involved. Cases, even when they went to
the court, took a long time to investigate and punish the culprits.

CBI ( Central Bureau of Investigation) is under the prime minister's
jurisdiction and the politicians have the tendency to to misuse it. In
the recent years cases have been filed against two former chief
ministers for possessing disproportionate of wealth and they are still
going on. Now both of them support the ruling coalition at the centre.
No wonder, Anna Hazare and his NGO, India Against Corruption, have
demanded that CBI should be under the jurisdiction of Lokpal (
Ombudsman) who can take up cases involving politicians and the
bureaucracy suo moto for investigation and persecution. The
institution of Lokpal was a suggestion made by the first ARC (
Administrative Reform Commission) almost 42 years ago and has never
been implemented by any of the administrations till now. The least
that the government has to do is to make CBI as independent as the
Election Commission.

Terrorism : India has two types of terrorism to tackle, one is
left-wing terrorism which wants to change the Indian polity through
violence, and the other one is promoted by Pakistan, first in Jammu
and Kashmir, now all over India.

Naxalite terrorism, started by some left-wing intellectuals, has
killed many innocent people who do not join them or help the
government bodies who promote social welfare programmes such as
schools and hospitals. It has spread its tentacles to many states.
They have recruited the poor and the unemployed to its rank. Instead
of preventing the misuse of power by the politicians and the
officials, the movement has prevented social welfare programmes
reaching the poor. The government has to appoint young and highly
motivated officials who can mobilise the support of the youth of the
region to frustrate the efforts of these terrorists. And the officials
should be adequately protected by a well-equipped police force.

The other terrorism has a different dimension altogether. It is a
state-sponsored project and it spans many of our neighbouring
countries as well.It stated in Jammu and Kashmir in 1989 challenging
the rigging of election by the ruling party of the state, and later,
questioning the state's integration with India, now it has spread all
over India. It has hurt India and now, Afghanistan and Pakistan as
well. Its effects are felt all over the world - UK, France, USA. It
has inflicted many wounds on Pakistan itself. It is assuming the
proportion of a frankenstein killing the creator.And the day may not
be far off when the world would jointly hold Pakistan to account for
this act of war against the world.

India has always extended a hand of friendship to Pakistan in spite of
numerous acts of terrorism executed by the non-state actors with the
support by its agencies. This has been misunderstood as the weakness
of the Indian state. India would be forced to act to defend itself
against these activities by Pakistan sooner rather than later. The
least that the government has to do it is to equip our police to
gather intelligence to prevent such activities, when occurs,
investigate speedily and punish the culprits immediately. This the
duty of every state and it can not abdicate its responsibility under
any excuse.

Our government has the dubious distinction of dealing sternly with
Anna Hazare and Baba Ramdev than the terrorists of both the variety.
The vote-bank politics has weakened our country.

India needs new politics and new economics.

Indian politics has run on few slogans which are touted as principles.
While the constitution envisages a society of equals, its politics is
based group interests. The only tools it has in its armoury for
welfare are reservation and subsidy which have distorted our economy
and politics. However, the only principle which can promote welfare of
all ( sarvodaya) is good governance - that which rises all the boats.
Mahatma Gandhi gave a talisman to all politicians - to ask themselves
whether their policies would empower the poor. This is the standard
which should guide government policies.We have to use all our
resources, men and materials, to create employment and wealth.Here are
a few examples:

(a) Water : We have drought in many areas and at the same time there
are floods in other areas. There has to be a vigorous campaign to
promote conservation of rainwater through bunds and check-dams, and
afforestation to attract more rain in the drought-prone areas. Plans
should be drawn to divert flood waters to dry areas. River-linking
project should be initiated where ever it is feasible. The rain-water
harvesting should be made compulsory in all towns and cities.

(b) Electricity: The recent headline all over the world says it all -
" India in the dark, 600 million people hit by world's worst
blackout". Electricity generation is not enough for economic growth
( thousands of villages and millions of households have no supply),
supply is erratic, some are given free and all electricity boards are
in the red. India has 300 days of sunshine and it should be the
pioneer in solar power. Every household should be encouraged to have
solar panels over its roof One-time cost is high but it has low
maintenance cost and lasts for many years. Solar lamps cut down the
use of kerosine and provide better light to the villagers. Germany is
phasing out nuclear power and going in for solar power in a big way.
Gobar gas projects too should be revived.

( c ) Roads and railways : They are the lifeline of the country. They
link villages with towns and cities, and promote movement of people
and goods - agricultural produce to towns and manufactured goods to
villages. They open the doors of prosperity. They needed to be funded
adequately.

(d) Food security : Every village or a group of villages should have
a grain silo and refrigeration facilities to store food-grains, and
preserve vegetables and fruits. Now hundreds of tons of food-grains
rot under the open sky as the state has not built enough storage
facilities. Fruits and vegetables are spoiled without any preservation
facilities.

(e ) Health and Education : Every village or a group of villages
should have a primary school and primary health centre.

( f ) Housing : Housing has many multiplier effect - create demand for
bricks, cement, steel, labour. It fulfills one of the basic needs of
man. It should be made easier to people to build houses and own
apartments with low interest loans and low taxation.

Let the politicians treat India as one and Indian people as one.
People will respond as one. Indian people are industrious and
talented. The government policies should unleash their hidden talents
and aspirations. Politicians have to be persuaded to renew their
pledge to serve India, not any narrow interest, through agitations and
movements by concerned citizens. Anna Hazare and Baba Ramdev have
shown that it is possible to awaken and mobilize the people to change
the system. Changing the system is not easy but it is not impossible.
That is way to change our swaraj into suraj.

August,10,2012.

******

Gauging Satyamev Jayate's impact.

The critical analysis made by Ms.Sevanti Ninan of the series of episodes of 'the Satyameva Jayate' hosted by the film star Amir Khan has many points. The cost ( astronomical Rs.3000 crore) of the series, the dismal role of Door Darshan ( it does not have any vision) and how the series gave credibility to Murdock ( who is mired in unethical ways of his media empire).

The most disappointing is the fact that only Rs.3.5 crore have been collected by some of the NGOs featured in the series. I wish the channel, the advertisers and the host support these NGOs more vigourously and tell the public about progress in each of these issues periodically. Unless they pursue these social objectives, there would not be much progress in our country and the series would remain a flash in the pan.

However, one has to thank all those involved in the series for pointing out our society's weaknesses. All changes have always come from the inspired people, not from the state. We need many more such people to change the face of India. We should not be the prisoners of the past. We have to evaluate all our customs and habits on a moral criteria of equal respect to all individuals irrespective of their caste, creed and gender. Only this will bring peace,harmony and progress to the country.

August 2, 2012.


*********

Gauging Satyamev Jayate's impact....Sevanti Ninan The show got Rupert Murdoch's flagship channel a lot of goodwill at a time when News Corp. is getting rotten press elsewhere in the world   Satyamev Jayate: The difference Aamir Khan made'. 'Satyamev Jayate: The game changer'. 'Satyamev Jayate ends with aplomb'. Three headlines from just one newspaper (DNA) sum up what has been the show's biggest asset through its 13-week run on several channels of the Star India stable and Doordarshan. A willing-to-be-charmed news media.   Why just the media? Parliamentarians, chief ministers, and bureaucrats responded with alacrity. The Indian system is geared to responding to pressure from the top, and the latter includes activist Bollywood biggies. Never before has a TV talk show been able to claim credit for a Bill getting passed in Parliament. Chief ministers and judges obliged with promises when Aamir Khan came calling, some state governments set the ball rolling on generic medicine availability, or on tightening sonography procedures to make misuse more difficult. Will the media be around to track if these initiatives endure?   So as Satyamev Jayate bowed out basking in the glow of media approbation, how much did it do, and for whom? On the face of it, it seems a pretty straightforward list.   The show got Rupert Murdoch's flagship channel a lot of goodwill at a time when News Corp. is getting rotten press elsewhere in the world. That is a PR triumph of no mean measure. And never have so many hacks lapped up so many metrics dished out by a social media measurement firm to tout impact.   It made Star Plus a fair amount of money. This paper has reported an ad rate of Rs. 10 lakh per 10 seconds for this show. In addition, the sponsors coughed up generous sums to compensate for the Rs. 3.5 crore plus per episode the channel reportedly spent on the show.   Ditto for Aamir Khan. He didn't do badly at Rs. 3.5 crore an episode as his production company's fee, plus an undisclosed personal appearance fee.   And, more than the money, it was a terrific TV debut for an intelligent and socially conscious star. Will it end up having done more for him long-term than for the fight to eliminate foeticide or caste discrimination or the diktats of khap panchayats? That's a no-brainer. He could run for Prime Minister tomorrow in Mumbai and Delhi, Bhagalpur and Chikmagalur. And for the time being, it is a no-contest with the other big Khans in Bollywood. They were not on air every Sunday cajoling people to pull India up by its bootstraps.   But that apart, not enough has been said about how it rediscovered for all of us what public service television can do. It overturned current assumptions about what people will watch, and what will sell. You could argue that Satyamev Jayate was public service television at its best. Unfortunately, it is about as replicable as Khan himself. Not because of what it cost to produce but because of the systems support an ambitious programme needs. A hard-headed actor with his own production house and an even more hard-headed commercial channel will invest what it takes to provide the support, including the warm bodies to do the research, and make sure they recover their cost and more. And they will do it in small doses. Thirteen episodes of a single show.   Courtesy Aamir Khan, the show ran on Doordarshan for free and made money for it as well. The channel found its advertising inventory for that slot effortlessly booked. But can Doordarshan pick up the ball from there, given that it spends a few thousand crores each year, attempting to serve the public? No. Because its system is just not geared to deliver compelling programming and market it with advertisers and the press.   During the period that it was running on Star and Doordarshan, a simple tracking that one did of DD National's total programming for four weeks showed that this channel actually spends more than 50% of its 24-hour airtime showing entertainment anyway—most of it just regular commercial entertainment. The most useful impact of Satyamev Jayate, then, would be if people in the government were to wake up and ask why the Rs. 3,000 crore plus that they spend a year on their own public service network does not deliver more evidence of increased public awareness.   Did the show make money for the non-governmental organizations it featured, and invited people to contribute to? So far a total of A princely Rs. 3.8 crore for the good souls working on all the 12 issues that the show probed. And that includes the Reliance Foundation's matching contribution. Not bad, but not transformative generosity either. So, do we measure the impact of Satyamev Jayate by its television rating points, its social media buzz or by how much it moved Indians to underwrite the change that they want to see?   Sevanti Ninan is a media critic, author and editor of the media watch website thehoot.org. She examines the larger issues related to the media in a fortnightly column.   Respond to this column at feedback@...   URL: http://www.livemint.com/2012/08/02005049/Gauging-Satyamev-Jayate8217.html

                  

Reluctant Duelist , Basu and Becker in Assam.

It is possible to find out a solution to the conflict between the local people of Assam and illegal immigrants, if the central and the state governments want to solve the problem. We cannot wish away the illegal immigrants not merely because they are in lakhs but also because Bangladesh does not agree that they are its citizens. The first thing they have to do is it stop issuing  voter identity cards to anybody who cannot prove they are Indian citizens. It is reported that some parties give do it to create a vote-bank.( we all know how some parties in Mumbai cultivate vote-bank in slums). Secondly, those who are in Assam illegally should be given work permits as they do in the Middle East.

Now that the Indian government has started issuing Adhar to all, this could be used to separate Indian citizens from the illegal immigrants. These immigrants can be given monetary inducement to go back to Bangladesh, and Bangladesh could be given economic concessions to take back their citizens. This, of course, is a very expensive proposition. But it is practical. No problem in India has easy solution.

We, as a state and as a civilization, have given refuge to all those who are persecuted elsewhere ( Jews,Parsis, Tibetans etc), we can also give shelter to these economic refugees. However,they cannot be allowed to decide the destiny of our country, if we want to preserve the integrity of our country.

The solution is not in the methods suggested by Basu or Becker, but in finding our own way out - a way by which we do not allow the illegal immigrants to decide who rules Assam but at the same time we do not infringe human rights.

Allowing this conflict between the locals and the immigrants to fester for ever and have recurrent bloodshed in Assam is no solution at all. It is pure incompetence, may be worse, no concern for national integrity. Our present leaders do not have the imagination and courage to solve any of our problems. Oh, for a Sardar Patel !

August 1, 2012.

*******   
Reluctant Duelist

Basu and Becker in Assam....Siddharth Singh

It is not for nothing that India is a collection of disparate states. Each state of the Union has its own enduring disorder. Bihar was, for long, the exemplar of societal anomie; Uttar Pradesh is home to caste combination and permutations that can only be called kaleidoscopic—its political results are debilitating. Jammu and Kashmir is in the grip of a senseless ideology of secession. These examples can be multiplied 28 times.

The one case that stands out as a tragedy is Assam. If there is one state that can be called the home of unpredictable political violence, it has to be Assam. In recent weeks, at least 57 persons have been killed in the three districts of the state due to clashes between the Bodo community and Muslims. Those forced to flee their homes number much higher. The lost livelihoods, fear and bitterness are beyond numbers.

Why do such benumbing episodes occur in the state with such regularity? Assam is one of the least urbanized states of the country. Its economy is rudimentary and the pressure on land is inexorable. But that is only a part of the story—and these pressures are not unique to it. The other element that make it combustible are the waves of illegal migration from Bangladesh without let or hindrance. All this is well known.

Assam's curse is that a large number of its residents are complicit in the demographic wrecking of their state. The state is in a strange situation: the availability or non-availability of specific laws to detect and expel illegal migrants has not made the slightest difference. It has, however, not prevented this from turning into a volatile issue. Some examples are in order here.

Consider, first the intuitive explanation for illegal migration. Assam, at one point, was covered by the Illegal Migrants (Determination by Tribunal) (IMDT) Act, 1983. Under this law, the burden of proving someone to be an illegal migrant lay on the person who made such an accusation. The optimal amount of enforcement of a law depends on, among other things, the cost of catching and convicting offenders, the nature of punishments—fines or prison terms—and the responses of offenders to changes in enforcement. Call this the Becker vision of the law (after the Nobel Prize-winning economist Gary Becker who explored the economics of crime).

From the Becker perspective, successive governments have invested virtually no resources in nabbing illegal migrants. And this includes both the Congress and Asom Gana Parishad (AGP) governments. The Congress' complicity in this is very clear: the IMDT Act was designed to prevent any foreigners from being caught and deported in the first place. But what about the AGP? Surely, it could have taken some steps or at least kept this important political issue alive. It did not.

For the Congress—even today—the cost of enforcing laws that deports foreigners from Assam is too high: it stands to lose a substantial fraction of its vote and even political power there if it takes any such steps. Secularism and protection of minorities are convenient foils.

But consider a counter-intuitive argument. Suppose, instead of the IMDT Act (which, in any case, has been struck down by the Supreme Court), the more stringent Foreigners Act, 1946, were to be applied. Will this change matters? Not for a moment should you think it will.

Here is an example. Imagine you are a potential illegal migrant from Bangladesh, say in the Sylhet district of that country. As many before you, you decide to enter Assam from one of the many possible routes in the Barak Valley. You slip in at night and a friendly country cousin—who arrived in an earlier round of migration—living in a border village, takes you in. The next day, the local police officer, tasked to keep an eye on intruders, visits your cousin. A cordial "exchange" occurs and he is off to make his report to the local superintendent of police who, in turn, informs the district magistrate (DM)—the authority under The Foreigners Act to determine citizenship. And the DM, in turn, makes his report to his superior all the way up to the Union ministry of home affairs.

What has gone wrong here? In this interpretation of law, it is assumed that the policeman, the magistrate and virtually the entire chain of officials act as "prescribed by the law" in a robotic fashion. It ignores the reality that these officials will have incentives that differ from those in the law. Call this the Basu vision of the law (after Kaushik Basu who modelled the economics of law in a very different vein from Becker). To put it in the language of game theory, such laws are unable to create "focal points", which ensure that all participants narrow down to a particular—"good"—equilibrium in this game of law. In laws such as The Foreigners Act and the IMDT Act, the divergence between incentives of those breaking the law and those implementing them is simply too large for them to be anything more than ink on a piece of paper.

It is this neither world of law—the law being there, its being unimplemented and being beyond implementation at the same time—that translates into ethnic and religious violence in Assam, again and again. Unless there is a political solution to the problem—and there seems to be none—Assam will remain home to unpredictable eruptions of violence.

Siddharth Singh is Editor (Views) at Mint. Reluctant Duelist will take stock of matters economic, political and strategic—in India and elsewhere—every fortnight. Comments are welcome at siddharth.s@...

* The state is in a strange situation: laws to detect and expel illegal migrants have not made any difference there

URL: http://www.livemint.com/2012/07/31225005/Basu-and-Becker-in-Assam.html

" Life comes cheap in India"

" Life comes cheap in India"

" Life comes cheap in India" sums up the story of compensation and
rehabilitation for the dead and injured in the July 13, 2011 blast
victims of Mumbai ( India Abroad,July 20,2012). It is painful to read
the heart-rending stories of these innocent people who feel that they
were at a wrong place at a wrong time.

The stories illustrate the shattered dreams and the shattered families
: "The world has forgotten us" ( Namdev Narayan Dhulup), " I wish I
was dead"( (Aspi Motilal Khetu), " I desperately need a job, Can you
help me please?" ( Sarika Jain), " The unbearable loneliness of life
in the big city" ( Rinku Vishwkarma), " No one cares" (parents of
Chandrakant Wanker), " The compensation money was not enough" ( Varsh
Karia), " If I spend so much money on medicines, how will I provide
for my family" (Vinod Shukla)," He is here with me" ( Kanna Shah) and
" The bomb was in a tall lunch box" ( Ramlal Musai Yadav), " The
family that won't talk about its dead" ( Bhupatbhai) .

No city or country can provide hundred percent security to all its
citizens even if it has large police force with all arms and
equipment. Presidents and the prime ministers have been killed with
all the security in the world. The least that the country has to do is
to provide proper and timely compensation and help in the
rehabilitation.

Your reporter, Vaihayasi Pande Daniel, says that there are 730 blast
victims in Mumbai, and tells us how New York honors and compensates
fully the 9/11 victims. As one of the affected family member says a
job or an alternative means of livelihood to the next of kin would
help them rebuild their lives. This is the most glaring fault of the
Indian government. Most of them have received compensation but
according to them it would not last for a long time. Among the
corporates, only the Tatas seem to have provided immediate relief with
monthly cash payment to help them cope up with life.

Some of the victims have revealed how some politicians promised help
which never materialised. These politicians spend crore of rupees on
election but could not help them at the hour of their need.

Indian government has been negligent of the victims of natural
calamities, irrigation dams, railway and bus accidents, industrial
disaster ( Bhopal) and terrorist attack. It is time that the
government set-up a department, if not a ministry, which takes up the
issue of compensation and rehabilitation of the victims on a
systematic way without bureaucratic delay. Tata's had set up such a
cell to help those affected by the blast in Taj Mahal and other
places in 2008 in Mumbai to trace the victims and their families to
help them stand on their legs.

As far as the terrorists are concerned, less said the better. They are
fanatics who do not know religion as no religion sanctions killing
innocent people. If it sanctions, it is no religion at all, it is pure
and simple imperialism.

July 19,2012.

********

Why BMC plans to get private trusts to run its schools?

Dear Vinay,

This may be one of the rare new ideas that has come from BMC. In spite
of spending hundreds of crore rupees on education by BMC municipal
schools have failed to give proper education to the poor.Many schools
have no water, no benches, no black boards and no urinals. Many years
ago, I remember, one of Municipal Commissioner had invited corporates
to adopt the municipal schools but the response was little. Now that
there is more awareness about the social responsibility of the
corporate sector, this may be right time time for such an initiative.

The government schools have failed almost everywhere including USA and
UK. In USA, parents, mostly Chinese and Indian, like to live in places
where schools teach properly, and the parents interact and assist the
schools in their activities.

There is an interesting report in the Economist ( of London) about the
charter schools under the headline, Charting a better course, ( July
7,2012) in USA. The charter schools are publicly funded but
independently managed. According to the report, the charter schools
have been successful because they offer freedom to shape the school to
the pupils, rather than the other way round. Schools can change the
length of the school day, fire bad teachers,and spend their money as
they wish. At Harpest Prep the school year is continuous, with short
and relatively frequent bursts of holidays, because that keeps
learning on track and kids out of trouble. However, there is a proper
mechanism to supervise these charter schools. Each class is examined
every six or seven weeks. The teachers are also monitored.There are
5,600 charter schools with 2m students in 41 of the 50 states of USA.
In Washington DC 44 percent of the students attend the charter schools
while it is 4 percent country-wide.Though the overall picture is
positive,the results have been mixed.

Of course, BMC need not copy this experiment, it can certainly ask the
corporates to run it efficiently. The bureaucrats and teachers have no
managerial experience, and there is no motivation to teach. The
corporates have to give them dignity and motivate them as the
architects of the future of this country.

July 13, 2012.

*********

Afghanistan, Pakistan and USA.

Afghanistan, Pakistan and USA.

The two reports in your last issue (India Abroad,July 13), US
dependence on Pakistan exposed and Last tango in Afghanistan, reveal
how US and the NATO find it difficult to withdraw from the quagmire of
Afghanistan without pandering to the wishes of Pakistan.

Pakistan wants to have a regime in Afghanistan which dances to its
tune as it wrongly believes that this would give it a 'strategic
depth' in its conflict with India (though this concept has become
irrelevant in the context of atomic weapons with both countries) while
US and its allies want to promote a independent democratic polity. The
present predicament of US is the result of its policy of using
Pakistan and jehadis of Al Queda to defeat the Soviet Union in
Afghanistan. It is during this period that Pakistan developed nuclear
weapons and built the taliban.

Pakistan is not a normal state and to function as a normal state
Pakistanis need a new narrative from their leaders, observes Ahmed
Rashid, a veteran journalist of Pakistan, in his book, Pakistan on the
brink : The future of America, Pakistan, and Afghanistan. He says the
military defines the Pakistani identity in terms of permanent
resistance to India.It uses jehadi groups in addition to diplomacy and
trade to pursue its defence and foreign policies.There is no coherent
national identity capable of uniting the nation. The taliban, which
was promoted by the army and the ISI, is now turning against it. There
were two attacks already on the military - one on Army General HQ in
October, 2007 killing 14 officers and civilians, and the other on
Mehran Naval Base in May,2011.

All that one can say is that you reap what you sow - in both cases.

Now, what is the way out as far as Afghanistan is concerned. The UN
has to bring all the major powers of the world and the neighboring
countries of Afghanistan together and provide the country with
guarantees of territorial integrity, support for economic development
and democratic functioning.

July 12,2012.

*******

Bitter Seeds - How Indian development strategy has failed the poor.

Bitter Seeds - How Indian development strategy has failed the poor.

It is officially agreed that almost 400 million people, one-third of
the population of India, are poor. The poverty is more in the villages
than in the cities. The overwhelming number of people living in
villages ( about 70%) depend on agriculture (about 60%) which
contributes only about 15% to the GDP. This gives an indication of the
poverty in rural India. It is in this context that we have to
appreciate the documentary, Bitter Seeds, made by the Israeli-American
filmmaker, Micha X Paled (India Abroad,June 22).

India had neglected the agriculture since the second five-year plan,
and had to depend on American wheat to feed its teeming millions - it
used to be said 'ship-to-mouth' existence. The Green Revolution
started in India in the late sixties with the high-yielding varieties
of seeds, increased use of fertilizers and expansion of irrigation.
Dr.Norman Borlaug and Dr.M.S.Swaminathan brought about this
revolution. The government set-up a network of extension services for
the distribution of seeds, fertilizers  and introduced minimum support
price for the wheat produced.

This was not extended to all the regions of India but was confined to
mainly to Punjab and Haryana. The Green Revolution had its own adverse
effects such as degradation of of soil due to extensive use of
fertilizers and pesticides. It also led to depletion of water table.

The Green Revolution did not reach other crops such as cotton at all.
Bt cotton seeds introduced by Monsanto and its Indian partner,Mahyco
(Maharashtra Hybrid Seeds Co.) assured higher yield. These seeds were
what are called, 'terminator' seeds - they cannot be used again and
the farmers have to purchase new seeds in every season at an increased
price. Cotton-growing area of Vidarbha in Maharashtra is a
drought-prone region. Many farmers have to depend on money-lenders for
loan. If the crop fails or if the price of cotton falls due to
over-production or import, these farmers find no alternative to
suicide.

The government has to increase irrigation facilities in the region. It
has to provide easy credit facilities through nationalized/cooperative
banks.Its agricultural research institutes have to develop new cotton
seeds or promote new crops such as soya beans or upgrade the
traditional crops such jowar (sorghum) and bajra ( pearl millet). It
has to facilitate formation of cooperatives of farmers to market the
produce. It is to be hoped the documentary wakes up the government to
the urgent need to attend to the problems of the farmers in Vidarbha.

http://www.indiaabroad-digital.com/indiaabroad/20120622?sub_id=z1RM6Qp6YN3y#pg36.

June 26,2012.

**********

Philanthro-journalism - Is it the future of journalism ?

" Philanthro-journalism " - Is it the future of journalism ?

Newspapers in the West are in decline, thanks to the internet and TV
which provide instant news, 24-hours of the day. Now, newspapers too
are now available on the net. People need not wait for the morning
newspaper. Along with the readers, advertisers have also switched over
to the internet.This has affected not only reporting from abroad but
also investigative reporting,says the Economist of London (June
9,2012). In response to this new situation, a new type of journalism
has emerged in the West - " philanthro-journalism". Some
philanthropists have come to the rescue of journalism as watchdog of
public good by funding such efforts.

Under the headline, Reporters without orders, the Economist asks the
question, " Can journalism funded by private generosity compensate for
the decline of the commercial kind?" and concludes that
'philanthro-journalism' is not the complete answer to the decline of
newspapers.

ProPublica and the Bureau of Investigative Journalism.

It is estimated that American foundations have contributed at least
$250 million to non-profit journalism ventures since 2005.
'Philantro-journalism' has given rise to investigative reporting in
the USA. The best example is, ProPublica, established four years ago,
and is led by Paul Steiger, former managing editor of the Wall Street
Journal and its managing editor is, Stephen Engelberg, former
investigative editor of the New York Times.It is funded by the Sandler
Foundation and has 34 working journalists. It invites other newspapers
to 'steal' its stories, of course with some conditions such as the
acknowledgement of the source, not changing the content etc.

It has published 110 investigative reports and 25 in partnership with
other media partners.It has won two Pulitzer prizes already. Some of
stories are : Money power in the the 2012 presidential election;
Fracking - drilling's threat to environment; Disposable Army -
Civilian contractors in Iraq & Afghanistan; Foreclosure - how banks
and the government failed homemakers; Dollars for Doctors - How
industry money reaches physicians; Presidential Pardons; Pakistan's
Terror Connection - 2008 terrorist attack on Mumbai; Nuclear Safety
etc.

.Investigative journalism is too expensive to be sustained by the
commercial business model,observes Engelberg, and says it should be
considered to be a public good.This journalism does not seek to make
profit and try to ensure freedom from even the donors by inviting
public donations. It is more like the campaign of Anna Hazare against
corruption and of Baba Ramdev to bring black money deposited in
foreign banks.

The mission of ProPublica is : "To explore abuses of power and
betrayals of the public trust by government, business and other
institutions, using the moral force of investigative journalism to
spur reform through the sustained spotlighting of wrong-doing."

Another example is from UK. The Bureau of Investigative Journalism
(BIJ) was established in 2010 and funded by David and Elaine Potter
Foundation, and is based at the City University in London.Its editor.
Lain Overton, believes that newspapers now lack time and budget to
hold the powerful to account. Some of its reports are : House for Hire
- Lords used to wine and dine clients; Political donations etc. Its
reports cover topics such as health, corporate watch, human rights and
open society. Since its launch, its 45 reports have been on the
front-pages of newspapers and some of them have won awards for the
reports in the web, radio and TV.

Indian journalism

India has some 70,000 newspapers and journals with a circulation of
ten crore. While the newspapers in USA and UK are facing decline in
circulation and in advertisement revenue, Indian newspapers are flush
with increased circulation and revenue. This is mainly because of the
widespread literacy in the last few decades and the economic growth
since the liberalization of the Indian economy. It is also due to the
low level of computer literacy and internet connection.

However, the media - daily newspapers,magazines and TV - have not
rendered any great service to the general public. Newspapers have
almost become tabloids devoting more pages to films and fashions than
on the problems of the common man in a country where almost one-third
of the population is poor. TV media seeks to increase its TRP by
sensationalism. There is 'breaking news' every day and sometimes every
hour which do not enlighten the viewers but create controversies with
selective quotes from speeches and interviews. The burden of informing
and educating people is shared by some journals - weeklies and
monthlies - who carry on serious discussion on the problems of the
people and the country. The newspapers and TV have trivialized the
public discourse.

Thousands of farmers commit suicide but there is no in-depth analysis
and when it is reported, there is no follow-up on the action taken by
the government, whether the situation has improved, if not, why not ?
Maharashtra is a drought-prone area but it has a large number of sugar
factories which encourage farmers to grow sugar-cane, a
water-intensive crop. It is recently reported that the state has spent
about Rs.70,000 crore on irrigation projects without even one percent
increase in irrigated land.

The media is also prone to 'paid news' which can be described as
'advertisement appearing as news'. This was exposed by some
journalists during the recent assembly elections in Maharashtra,
Haryana and UP. It started with gifts and junkets to reporters, now
the media organizations have 'private treaties' which provide stakes
in the companies who get free publicity. A Report on Paid News,
prepared by the Sub-Committee constituted by the Press Council of
India,has collected and compiled details on this from various sources,
and suggested some remedial measures.

No wonder, people have lost trust on the media.Edelman,an independent
public relations firm, in its 2010 report, Trust Barometer Survey ( in
22 countries) states that the Indian media has lost credibility and
trust among the people - from 61 percent to 40 percent in newspapers;
61 percent to 36 percent in TV; and 72 percent to 47 percent in
business magazines.This decline in trust was confirmed by another
survey conducted by the Readers' Digest magazine where the people
ranked journalists 30th among the 40 professionals listed in the
survey, next only to barbers and bus drivers.

How to regain the trust ?

During the freedom struggle, many patriots started news papers and
magazine to encourage people to participate in the movement started by
Mahatma Gandhi under the banner of Congress. At that time, journalism
was a mission. After Independence, journalism became a profession but
it continued its mission as well - the mission of economic development
of India.

During this time, the government tried to undermine the freedom of the
press through restricted import of newsprint and its distribution. It
also used advertisement of the government departments and the public
sector enterprises to discourage critical reporting on the ruling
dispensation.The newspapers who criticized the government were branded
as 'jute press' by the then prime minister. With a large circulation,
newspapers became an industry.

Today it has become not just an enterprise or a industry but a
profiteering industry. It is true that all enterprises have to sustain
themselves with a surplus but they cannot pollute the fountain of
public trust. Media is called the fourth estate because it is one of
the pillars of the democratic system along with the legislature, the
Constitution, the Court. The citizens should have access to unbiased
information to make an informed judgement on the issues of the day.
The daily newspapers and TV news should reflect all the viewpoints of
the various sections of the people. Our press has failed in this
primary task.

The newspapers should provide  a platform for a dialogue and
discussion among the people. Our newspapers are like a lecture in a
school where the teacher talks and the students listen. No student is
encouraged to ask question. Our newspapers have little space for
readers to comment. While the newspapers in the Western countries
provide half-a-page for readers, our newspapers have only one column
for it. Now people use internet to express their views.

Can ' philanthro-journalism' be the answer to the lost trust of the
media ? Concerned citizens can come together to form a non-profit
organization with a contribution/donation every year to sustain
newspapers, magazines and TV for unbiased news and views in every
state and every language. India too should explore this avenue to
preserve its democratic system.

June 26,2012.

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