Open Forum

New Delhi, 17 April 2010

Poverty Syndrome

RURAL REJUVENATION CRUCIAL

By Dhurjati Mukherjee

The government has regularly been providing figures to what extent poverty exists in the country. However, experts believe these could be double instead i.e. anything around 40 per cent of the population. Recently, the Suresh Tendulkar report estimated 37 per cent of the total population was under the poverty line while the proportion of the poor was almost 42 per cent in rural areas.

Indeed, this is a sharp hike from the official poverty estimates of 27.5 per cent for the country and 28.3 per cent for rural areas. Over half of the rural population in States such as Orissa, Bihar, Madhya Pradesh, Chhattisgarh and Jharkhand are still living under abject poverty and are unable to meet their basic necessities of food, health and education.  

Earlier, the World Bank estimated that India had 456 million people (42 per cent of the population) living below the new international poverty line of $ 1.25 a day. Also the country had 826 million people (75.6 per cent of the population) living below $2 a day which was more than that of Sub-Saharan Africa, considered the world’s poorest region.

Even the Saxena Committee, constituted by the Rural Development Ministry, came out with an alarming figure of over 49 per cent of the population existing below the poverty line. The number of poor is estimated to be over 400-450 million (or even more) of which ¾ live in the countryside There is another major section of 150-250 million who have to struggle for existence with meagre earnings equivalent to $1.5/2  a day. The number of rural landless families increased from 35 per cent in 1987 to 45 per cent in early 2000 and to 55 per cent in 2005, which may be anything around 60 per cent presently.

The lowest poverty ratio was 5.4 per cent for Jammu & Kashmir and highest for Orissa (46.4 per cent). Nine States namely, Uttar Pradesh, Uttarakhand, Bihar, Jharkhand, Madhya Pradesh, Chhattisgarh, Maharashtra, West Bengal and Orissa accounted for nearly 76.2 per cent of the total rural poor in 2004-05 as compared to 62.3 per cent in 1973-74. The concentration of the poor has increased in these States except Maharashtra and West Bengal.

An estimated 23 per cent of the poor do not have a ration card, let alone the BPL card. Though there have been demands for a national survey to identify the poor, whatever welfare measures that are in vogue do not reach even 40 per cent of the beneficiaries. The delivery mechanism is poor. The panchayats either do not have the capacity to deliver the goods or political squabbling as also corruption and favouritism come in the way of delivery and intended services for the impoverished. 

As the level of consumption came in for criticism, the Planning Commission has reviewed the issue. The exercise is also significant as the government is interested to reach food to all those who are hungry. But with high inflation and rising cost of essential commodities, the BPL families have been struggling to ensure two square meals a day. 

Meanwhile, it has been found that the Rs 5000 crore National Food Security Mission (NFSM), launched to ensure food security for all by 2012, may be inadequate to meet the demand for foodgrains. While the total production has been estimated to touch 230 million tonnes by 2012, this is expected to fall short of the demand by 4.15 million tonnes.

The Food & Agriculture Organization (FAO) estimated that one-fifth of the Indian population is undernourished because of poverty. With general consumption being on the rise and a changing pattern discernible there would be an increasing pressure on foodgrains. It is thus prudent for the Centre to set up the Central Food Security Fund to monetarily compensate the BPL beneficiaries of the targeted PDS who fail to get the mandatory 25 kg of wheat or rice per family per month at a subsidized rate of Rs 3 per kg. The four years of the National Rural Employment Guarantee Scheme (NREGS) has had some impact on the rural areas as the poor use over 70-80 per cent of their income on food, and the demand projections may increase.  

Besides, the 11^th Plan emphasized on certain measures for taking agriculture to a higher trajectory of four per cent annual growth for tackling poverty. Apart from making low-cost technology available to the small farmers at the grass-root level, some of the specific measures outlined in the Plan include: improving water management, rainwater harvesting and watershed development; reclaiming degraded land for cultivation and focusing on soil quality; bridging the gap through effective extension at the grass root level; diversifying into high-value outputs, fruits, flowers, medicinal plants, bio-diesel etc.; providing easy access to credit at affordable rates; and  improving the incentive structure and functioning of markets.

Let us now refer to the strategies envisaged in terms of generation of income through Scenario-I and Scenario-II (Mission Mode) approach to poverty eradication by 2015-16. As per projections by the Ministry of Rural Development, the NREGA envisaged providing wage employment of 100 days to the entire BPL household thereby ensuring an income of Rs 8000 per household. Under SGSY (Swarnajayanti Gram Swarozgar Yojana), 2.8 crore household are expected to enter into the economic activity zone through Scenario-II approach of which 1.4 crore households would be able to get incremental income of around Rs 14,000 by 2015-16. Also through Skills Development & Placement Programme 1.7 crore BPL youth would be able to earn at least Rs 24,000 per annum. The Social Security Programme would cover 3 crore beneficiaries and thereby supplement family income by Rs 4800 per annum by 2012-13.

New strategies in the realm of agriculture, agro-industries, wage employment, self employment, non urban-based knowledge parks and revitalization of small and cottage industries have to be conceived. Thus the basic element of the poverty eradication strategy has now to focus on the development needs of the rural areas so as to rehabilitate the poor and the half-starved farmer and his family. More resources have to be allocated for such development.

In view of the growing demand for food, there has to be strong emphasis on modernizing agriculture and increasing and diversifying foodgrains production. This would entail ensuring three crops per year, encouraging horticulture and floriculture production and keeping an eye on productivity increase. Since land holdings have become smaller over the years, cooperatives should be encouraged to cultivate a few holdings together and then share the produce equitably. The output would have to increase considerably and benefit the poor farmer. But for this, the panchayats need to come forward and ensure that the land yields optimum and value-based products while all sorts of inputs have to be made available free of cost to these cooperatives. Moreover the government has to ensure that agricultural land should under no circumstances be used for industrial/township development.

Obviously, requisite agricultural reforms have to be brought forth for efficient use of resources and conservation of soil, water and ecology on a substantive basis along with introduction of newer technologies, encouraging production and use of bio-fertilizers and application of bio-genetics for improved plant and horticultural products. One may conclude with an estimate by the eminent economist, Dr. C. Rangarajan, in 1982, that a mere one per cent increase in agricultural output led to a 0.7 increase in national income and that most part of this enhanced income reached the grass-root levels of rural India and benefited the farming community. --INFA

(Copyright, India News and Feature Alliance)

Political Diary

New Delhi, 17 April 2010

Lalit-Shashi Aur Dhoka

IPL: ANOTHER SHARJAH?

By Poonam I Kaushish

Dost dost na raha, pyaar pyaar na raha, zindagi tera ikbaar na raha. This Bollywood song of yesteryears glove-fits the 2010 LSD (Lalit-Shashi aur dhoka) saga. A dazzling show of the confluence of big money, sport, psychedelic entertainment, accessorised by beautiful women and Bollywood sirens, rubbing shoulders with India's rich and famous and politics leading to a sleazy scandal. Exposing cricket’s filthy underbelly. Making many rue, will it clean-bowl the gentleman’s game?

All thanks to a series of tweets by the IPL Commissioner Lalit Modi about one of the two new franchises, Team Kochi's ownership details last week. A team bought  for a staggering $333 million (Rs 3,250 crore) and  “mentored” by Union Minister of State Shashi Tharoor. Which included his “close friend” Dubai-based Sunanda Pushkar who had been given 19% free sweat equity in perpetuity  of the 25% held by Rendezvous Sports World (RSW) for managing the team. No matter, of the remaining 75%, only 1% was held by a Kerala businessman and the remaining 74% by fat rich Gujarati investors based in Dubai and Mumbai.

Predictably, all hell broke loose. Ugly charges and counter charges were exchanged. About the Minister's “external affair” with Sunanda, IPL Chief’s yesteryear drug conviction, his sudden “lack” of interest in a South African model, countered by RSW’s allegation of being offered $50m to give up their bid in favour of some others,  favouritism to relatives and models, politicians and dons and even reports of a death threat. Provoking the income tax officials to quiz Modi and visit the Board of Control for Cricket in India (BCCI) headquarters.

The issue is not whether Tharoor is sacked and Modi’s wings are clipped. Nor about the ownership of the Kochi league, but about the transparency and accountability of the IPL’s workings. Clearly the Kochi fracas underscores the many problems in the way the IPL is being funded and run. Reportedly, evidence is mounting that many of the franchisees are owned by multiple entities spread across the world, including in tax havens, and possibly operating as front organisations.

At the centre of the controversy is twice-divorced Sunanda Pushkar. Who? While her ‘close friend’ Tharoor describes her as “reputed business professional and entrepreneur with a long track record of business success”, the facts speak otherwise. Daughter of a retired Army officer from Sopore, Sunanda went to Baramulla Army school and graduated from a Jammu college in 1991 after her family migrated there in 1990. She studied at Presentation Convent and later worked as a receptionist at the ITDC-run Centaur Lakeview in Srinagar where she met her first husband.

Presently, she holds a Canadian passport, lives in Dubai and works as director (sales) of  a real estate company there. Prior to that she ran a spa, worked in an advertising firm, was employed in a travel agency and tried her hand at event management. Totalling not “successful business women” but a plain working women.  Besides how come the smart Sunanda didn’t know that under the law one is only entitled to sweat equity as an employee and not an owner?

There is no gainsaying that both Tharoor and Modi stand guilty of conflict of interest. While Tharoor  is guilty of using his power and influence arising out of his public office improperly, read to further the interests of a business consortium. It's not yet clear exactly what kind of service Tharoor provided to the Kochi team for which investors gave his friend Sunanda a "sweat equity" Then Modi too is equally guilty for keeping mum about his many relatives who have stakes in IPL teams.

Tragically, the heady mix of glitz and glamour plus an insatiable craving for instant riches, bulging bank accounts, bankruptcy of scruples, shady whispers of underworld funds and omnipresent fixers appear to have taken control of the wheels of the IPL juggernaut, which now perhaps is cruising to rid itself off the BCCI's control. AS succinctly encapsulated by Union Sports Minister MS Gill, “This is not cricket”! Think. The IPL brand in less than three years is estimated today at a whopping $4.13 billion, how? Not a few,  believe that it could soon overtake the English Premier League (EPL), currently valued at around $12 billion. Absurd given that the EPL is the world's most widely watched sporting league with a viewership of over 500 million, spread across over 200 countries.

Arguably, is the IPL 2010 the new avatar of  Sharjah 1984-2001? And is Lalit Modi the new Abdul Rahman Bukhatir? Yes, if one goes by the skeletons tumbling out fast and furious from the IPL cupboard as also the many questions it raises. Recall, Sharjah, was the much-sought after venue for 200 one-day international matches involving three- four international teams in the mid 80’s-90s. Established by Bukhatir under the garb of the “The Cricketers Benefit Fund Series (CBFS)” to honour cricketers from India and Pakistan, it came under a cloud when Dawood Ibrahim booked special enclosures with Bollywood filmstars in tow and hosted post-match parties. Soon it became synonymous with D-Company, betting, money laundering, match fixing et al. However, all this came to an ignominious end when a senior Indian cricketer spilt the beans on betting and match-fixing leading to the Indian Government banning the national cricket team from playing there. This was followed by the Justice Y V Chandrachud on the betting and money laundering phenomenon in Indian cricket post Hansie-gate.

According to IB sources the Kochi stink has once again raised the scepter of Sharjah. The fear is that the underworld would indirectly try and participate in cricket operations since they realize that the game is a major money-spinner and they could double their money. The investments would not be direct but through its stooges so that on the surface, the operation looks legitimate. Thus, making tracking difficult. The fear is that the monies so received would be a terror-front. Said an official, “There is a definite smell of match-fixing coming from the IPL where strange things are happening," It is strange that players who are not regular bowlers have taken hat-tricks in the league. Teams are losing matches from winning positions.”

Significantly, who are the stakeholders of the IPL teams, including ‘related parties’ and ‘associate businesses’? Do we know how bids and valuations were decided in the first auction and who were the other bidders who lost out and by what margin? Isn’t there a conflict of interest when a senior cricket board official also owns an IPL franchise?

Clearly, everything is not above board with the IPL. It has become a byword for cronyism and big money. At its heart it is about making money, not sporting excellence. "I am just a businessman and have absolutely no interest in cricket," In fact, the Modi-Tharoor spat has a silver lining: It has opened the can of worms in sportsdom.

It is incumbent on the Board of Control for Cricket in India (BCCI) to clear the air in the next IPL governing council meeting to be held soon. Since the ownership structure of the Kochi franchisee has been made public, the same should be done for other franchisees too. This would go a long way in making the operations of the IPL transparent. If the BCCI drags its feet, the Government must inquire into the financial dealings of the IPL. Undoubtedly, the latest episode goes much beyond cricket.

More. Sadly, all sports bodies are headed by powerful politicians or their ‘henchmen’ bureaucrats. The BCCI is no different from the Indian Olympic Association, badminton, football federations’ et al.  You name it and virtually all sporting body in this country is headed by a politician. At the State level it is Chief Ministers many with little interest in or knowledge of the game. The truth is that sports is a heady intoxicating potion for our netas. And like politics they run their fiefdoms with an iron fist wherein decision-making is confined to a small group of people sans accountability.

Needless to say, the rot has set in. Correctives need to be put in place urgently before the IPL and the BCCI’s credibility is ruined. It needs to be remembered that sports is by necessity a public activity, one that must be transparently conducted and be accountable. Not clean bowled by no rules, no boundaries and cronyism! ----INFA

(Copyright, India News and Feature Alliance)

Round The World

New Delhi , 13 April 2010

Krishna’s China Visit

MERE RHETORIC, NO ACTION

By Monish Tourangbam

Research Scholar, School of International Studies, JNU

Foreign Minister S.M. Krishna recently concluded an official visit to China that has been termed successful from both the sides. The high-level trip, as expected, raised a number of vital issues in Sino-Indian relations and managed to keep the competitive nature and unnecessary rhetoric minimal. If expectations are kept low in view of the contentious nature of the relationship between the two neighbours, the visit can be seen to have scored where it intended to tone down differences over touchy issues and capitalize on and showcase the areas of convergence, and advocate the belief that cooperation is inevitable between the two if Asia was to emerge in the international system.

The trip was not expected to bring about any dramatic change in relations but was deemed important enough to keep oiling the wheel of bilateral ties and to cement common areas of interests and restore confidence. One of the highlights of the visit was China and India agreeing to set up a top level mechanism, in an otherwise fractious relationship marred by differences and frequent rhetorical exchanges over the boundary issue, on the Dalai Lama and uneasiness over military preparedness on both sides.

Foreign Secretary Nirupama Rao briefing reporters said that both sides were pleased with the new mechanism connecting the Chinese and Indian Prime Ministers, which could help prevent dangerous flare-ups in future. Similar positive reviews on the visit were given from the Chinese side as well. Premier Wen Jiabao said the relationship had reached a "new phase of mature and stable development." "History shows that friendship between neighbors and common development are in the interests of both countries, of Asia and of the world," he added.

The Indian and the Chinese in their deliberations sought to give out the message that the relationship had to be accounted for in view of its global dimensions and that the nature of this relationship required a far-sighted long-term strategic view. An attempt was made to display the commonality of interests between the two countries on major global issues such as the financial crisis and climate change.

India’s convergence with China on tackling climate change was reviewed favourably by Minister for Environment and Forests Jairam Ramesh who credited the close cooperation between New Delhi and Beijing at the Copenhagen summit for bringing about a positive change of climate in bilateral relations. Ramesh headed India’s first ministerial delegation to the recent annual Boao Forum for Asia (a Chinese sponsored business forum which has gained prominence since it was established nine years ago).

Of late, he has been explicit in espousing closer India-China relations and opined that “the cooperation between India and China on climate change and environment could become a template for how the two rising neighbours could better leverage their differences and work together globally”. The attendance of a large Indian delegation in the meeting and the election of Federation of Indian Chambers of Commerce and Industry (FICCI) Secretary General Amit Mitra to the Board of the Forum perhaps reflect on the importance being accorded to the forum and acceptance of each other’s salience.

As India and China celebrate the 60^th anniversary of the establishment of diplomatic relations, recent developments and cooperation are being seen as a reminder that the neighbours despite the seeming competition have no alternative but to cooperate with each other. New Delhi and Beijing have pledged to increase cooperation and exchanges in the field of education, which is seen to be crucial for enhancement of mutual awareness and understanding. It was also felt that the education sector was underutilized and held great promise necessitating new ventures of the highest level.

Mr. Krishna also deliberated on the issue of the detention of 21 diamond merchants from Gujarat by China on charges of smuggling, emphasizing to the Chinese side that the legal process should be conducted in a transparent manner. While 20 of them have been charged with diamond smuggling, one has been charged with money laundering. Beijing is reported to have promised to continue to provide access to the Indian officials to the detainees.

Taking a more critical look at the proceedings, India and China seem to be hardly moving ahead in matters of crucial security interests, be it the protracted boundary issue or China’s response to India’s bid for a permanent seat at the UN Security Council. Rounds and rounds of dialogue have failed to move negotiations on the crucial boundary issue towards any meaningful result, with rhetoric and diplomatic aggressiveness often being the norm.

In an interaction with scholars at the China Institute of International Studies (a government-affiliated think tank), Krishna called on the Chinese government to rethink its opposition to India's bid for a permanent seat on the UN Security Council and to cooperate more on tackling terror from Pakistan. Apparently, intending to preserve the atmosphere of the visit, Chinese officials just agreed to hold further talks on the issue of India’s aspirations at the United Nations.

The issue was also raised with Chinese Foreign Minister Yang Jiechi and Premier Wen Jiabao. Rao told reporters that China reiterated its earlier position on the UNSC, voiced during Prime Minister Manmohan Singh's visit to China in 2008, that Beijing “understands and supports India's aspirations to play an active role in the U.N. and international affairs.” This is the same position China has held since Wen's visit to India in 2005, indicating China’s diplomatic lip-service policy regarding this issue.

Krishna also brought forth New Delhi’s concern over Beijing stapling visas for residents of Jammu and Kashmir. Though the Chinese side was clearly intimidated about this unacceptable practice, as of now, the issue seems to be undergoing discussions and not much is known as to what the resultant Chinese policy is.

Pertaining to India’s legitimate concerns over China undertaking development projects in the disputed Pakistan-occupied Kashmir (PoK), the Chinese side sounded non-committal and vague at best, providing an all-too rehearsed line that the Kashmir dispute was something to be resolved between India and Pakistan in a bilateral and peaceful way.  The Chinese position according to Foreign Secretary Rao was that “what they (China) do in PoK is without prejudice to this position of theirs.”

But keeping in mind the historical contour of India-China ties and the suspicions and insecurity that pervades this relationship, it is best to keep expectations low when these two neighbours talk. Despite the all-too obvious differences and stalled boundary issue that has largely dictated the enmity between the two, there have been some significant breakthroughs in recent time and the two economic giants seems to be gradually understanding the importance of the Sino-Indian relationship in the Asian and global structure.

Clearly, the nature of the discord between these two countries cannot be quick-fixed and as officials have commented, a lot of patience is required. Till then, it will augur well for both the two Asian giants to intensify existing ties and diversify cooperation in areas hitherto underutilised. ---INFA

(Copyright, India News & Feature Alliance)

People & Their Problems

New Delhi, 14 April 2010

Occupational Hazards

MAKE YOUR WORK PLACE HEALTHY

By Suraj Saraf

With increasing economic growth, the problem of occupational hazards and conditions at work places is significantly increasingly as apart from the health and safety of the workers it also has a crucial impact on productivity.

At a recent three-day conference “Preventing Emergency Occupational and Environmental risks in South Asia and Beyond”, in the country’s capital, New Delhi, Chief Minister Sheila Dikshit underlined that with medical science establishing that environmental factors may contribute 30 per cent of the total burden of illness in a given society “identifying occupational illnesses related to environment has become important”.

Clearly, occupational and environmental hazards are being noticed due to fast economic development and increasing utilization of natural resources. Much of the burden of diseases can be done away with by taking adequate measures for preventing and controlling the use of harmful chemicals and safer technologies as also using more renewable energy.

Such measures, in turn, would lead to lesser burden on the overcrowded hospitals. Apart from this a better social security system was also needed for providing a helping hand to persons faced with occupational and environmental hazards. Indeed, health and happiness instead of economic growth should be accepted as parameters for development of any nation.  

Some recent reports have suggested that conditions in India regarding this aspect of economic growth required to be improved as the country was losing heavily on these accounts. In fact, a World Health Organisation (WHO) report had underscored that India could incur losses of $ 237 billion by 2015 due to a sharp rise in lifestyle diseases such as  diabetes, stroke, cancer et al all thanks to increasing unhealthy workplaces.

The economic loss in India which was $ 8.7 billion in 2005 would rise to $ 54 billion by 2015, warns the WHO report entitled: “Preventing communicable diseases in the workplace through diet and physical activity”. The projected loss for the other Asian giant, China was massive $ 558 billion by 2015, while the projected figures for Russia and the United Kingdom was slated at $ 33 billion each, it was $ 9.3 billion dollars for Brazil, $ 6.7 billion for Pakistan, $ 1.5 billion for Nigeria and Canada each.

Promoting the concept for a healthy workplace, the WHO report had underlined that physical activity together with healthy dietary habits could be effective in improving health-related outcomes such as obesity, diabetes and cardiovascular diseases.

It may be mentioned here that a healthy and balanced diet has also become important because of spread of pollution and environmental degradation, resulting in reducing the immune power of the individual. Such a diet helps to keep the body healthy and keeps it free from at least some diseases. Let us not forget that as it is, India is one of the largest disease-prone countries of the world, not just because of poverty and squalor, but also because of lack of knowledge and awareness about what constitutes a healthy diet.

The WHO report, the outcome of an event jointly organized by the WHO and the World Economic Forum, summarized the current evidence in addressing different dimensions of the workplace as a key factor for setting requisite intervention designed to prevent non-communicable diseases through diet and physical activity.

Enhancing employee productivity, improving the corporate image and moderating medical care costs are some of the factors that might foster senior management to initiate and invest in programmes prompting healthy workplaces, the WHO report underlined.

Essentially the key elements of a successful workplace health programme include establishing clear goals, linking progammes of business with work place safety programmes, the report further emphasized.  

According to survey conducted by the Associated Chamber of Commerce and Industry of India (ASSOCHAM) and the Price Waterhouse Coopers and their joint report, hypertension threatens to wallop the workforce in India, due to globalization and increasing stressful working environment The report said that 65 million people were affected by hypertension in 2008 which in all likelihood is bound to rise to 200 million by the year 2015.

The desperation to protect one’s livelihood in this era of a changing economy, with little medical facilities to cope with the situation was posing a major threat to the well-being of the working force, maintained the ASSOCHAM. India is particularly losing its potentially productive years due to incidents of increasing heart diseases, strokes and diabetes in the age group of 35-60 years, which shockingly is one of the highest in the world, according to the report.   

The rise in this incidence would only add to the national losses, which in monetary terms were pegged at $ 90 million dollars between 2005 and 2008. The report estimated that it was likely to go up to $ 160 million during 2009-2015.

Given the reports and the disturbing statistics about workplaces in India, the Union Cabinet had approved a national policy on safety, health and environment at workplace to ensure the employees health and safety. The policy had provided for general guidelines for all stakeholders --- both Central and State Governments, inspection authorities, employers, R&D and educational institutions, to develop a safety culture.

The policy also deals with the preparation of statutory framework, administrative and technical support, system of incentives, prevention strategies and their monitoring and inclusion of safety health and environment aspects in other related national policies. Importantly, the policy could be reviewed every five years.

In the meantime, according to an International Labour Organisation (ILO) study though the industrialized countries had seen a steady decline in work-related accidents and diseases this was not the case with countries undergoing rapid industrialization and under developed nations where a National Occupational Safety and Health System has often not been properly enforced.

Efforts to tackle occupational safety and health issues are often disintegrated and fragmented and fail to achieve a progressive reduction of work-related fatalities, accidents and diseases, warns the ILO. Its advice is that: “We must do what we can, enforce or enact the laws we need and take action. We must make our work places safe and decent. It’s our common responsibility”. ---INFA

(Copyright, India News and Feature Alliance)