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Of Drought & Inflation:CAN TH E NATION BE OPTIMISTC?, by Shivaji Sarkar,4 September 2009 |
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Economic Highlights
New Delhi, 4 September 2009
Of Drought &
Inflation
CAN THE NATION BE
OPTIMISTC?
By Shivaji Sarkar
The nation should not be “over pessimistic” despite the
drought, Prime Minister Manmohan Singh told the Planning Commission’s first meeting
after the new Government took over. But the Commission’s Deputy Chairman,
Montek Singh Ahluwalia said almost the contrary: that the growth as recorded in
the official documents of the first quarter is to gradually come down and
pepper off in the last quarter.
Well, the Prime Minister is optimistic that since “our food
stocks are very high” the consequences of drought could be managed. He
obviously meant that the situation would not be too inflationary. However, only
three days ago the Reserve Bank said the “spectre of inflation is expected to
rear its head by the end of the current financial year, which could pose a
major challenge”.
The apex bank explains that “deficient monsoon could affect
the inflation outlook more than the growth prospects”. Further, easing the
base-effect and possible strengthening of fuel and food prices would take
inflation to high levels, which in turn would pose a threat to the process of
economic revival.
The Prime Minister has the onerous task of keeping the
nation’s morale high. Therefore, it is expected that his purpose was of
presenting not so gloomy a picture. One only hopes that this nation is not
following Queen Elizabeth II, who in July asked why nobody had predicted the
great recession. She did not remember that dozens of economists and journalists
had warned repeatedly that the world suffered from unsustainable asset bubbles,
imbalances and debt.
In the case of India, we often try to ignore
realities. Three days after the new trade policy was announced targeting $ 200
billion exports in 2010-11, the July exports fell by 28 per cent. Along with
that came the news of a further fall in the US unemployment – an indication
that the global economy is not doing well and the hope of growth in exports is
more utopian.
Manmohan Singh expected that there would be a growth of 6.3
per cent as against what the RBI had repeatedly said “not more than 5.75 per
cent”. The recent slowing down in the core sector industries comprising steel,
cement, coal, electricity and oil to 1.8 per cent following a fall in
production of steel products and petrol refinery, is a grim indicator that the
nation might again slip off its growth target. The core sector accounts for
close to 27 per cent of the total industrial production.
The electricity sector which continues to be a bottleneck
registered a meager 3.3 per cent growth down from 4.5 per cent a year ago. The
Confederation of Indian Industry (CII) has expressed concern that electricity
generation and capacity increase has not matched the growth in demand. In the
previous two Plans, the addition was much less than anticipated. The Eleventh
Plan is also not expected to bridge the gap. In stark contrast China adds far
more capacity every year.
Records reveal that the steel industry merely managed to
edge upwards with a 1.2 per cent growth compared to 6 per cent growth in July
last year. Only cement and coal segments registered growth, with the former by
10.6 per cent up from 5.5 per cent in July 2008 and the latter segment expanded
by 9.7 per cent. But it is too early to say whether this is indicator of any
revival.
The manufacturing sector is also not doing well. The index
of manufactured products rose by a mere 0.1 per cent and manufactured food
products by 0.7 per cent. This is an indication that people are lacking in
purchasing capacity owing to job losses, high cost of living and continuous
pressure of sharp rise in food prices. Principal economist of Crisil DK Joshi
says this will bring the wholesale price index (WPI) into the positive zone,
from the present negative, within a month.
Apparently, Manmohan Singh has based his projections and
optimism on a positive global growth. In contrast, the RBI cautions that if
global growth revives, demand for food items and petroleum products too could
rise and result in higher inflation. In addition, private players are too
playing havoc with the prices and there is a trend of hoarding, other than
poaching on the farmers. To counter this, the Government has raised the minimum
support price of agri-commodities recently and is mulling to raise it further.
However, the RBI warns that this would belie what Prime
Minister is expecting. Instead, it would further stoke inflation. In such a
situation, the call of Manmohan Singh for a public private partnership (PPP) in
the social sector --- health, education and urban development is also wrought
with risk. And he too is aware of it and has thus cautioned the Plan panel that
any initiative must not weaken the Government’s commitment of “inclusiveness”.
Truly, it is unfortunate that the private sector has not
matured over the decades and continues to be focused only on exploitative
profits. The Government needs to look at this aspect and should through various
industry and trade chambers start a dialogue to educate the private sector on
becoming a partner in a positive manner. Most PPPs, including those on the
highways, are extremely expensive propositions, have been adding to
inflationary trends and affecting the growth propositions.
Surprisingly, the Prime Minister did not speak on the high
Government borrowings, though only a few days back Union Finance Minister
Pranab Mukherjee had said it would not have any impact on interest rates or
inflation. Once again the RBI has contradicted this view and expects the interest
rates to harden. It is circumspect on the Rs 40,000 crore stimulus package the
Government had announced. “If stimulus is sustained longer, the imbalances left
in the system could create market-induced pressures, which may work
against recovery,” warns the Central bank.
Clearly, the Government is passing through the most
difficult economic phase. Keeping the nation’s morale high is a challenge in
itself. But high food stocks unless used properly would not bring the prices
down. With the projected 20 per cent fall in kharif production and another
likely fall in the rabi output, it is expected that the Government would have
difficulty in building up the food buffer next year. Though nobody wants to
paint a gloomy future, the trends are nowhere near being optimistic. The nation
may not be pessimistic as the Prime Minister says, but it has little for being
optimistic. --INFA
(Copyright, India News and Feature Alliance)
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Hatoyama Victory:TIME TO PUSH INDO-JAPAN TIES, by Parama Sinhapalit, 5 September 2009 |
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Round The World
New Delhi, 5 September 2009
Hatoyama Victory
TIME TO PUSH INDO-JAPAN
TIES
By Parama Sinhapalit
School of International Studies, JNU
The 21st century seems to be ushering in many new
international developments. First, it was the global financial crisis of 2008
that rocked the economy of the most powerful nation---the US, then the surprise win of the Congress party
in India early 2009 and now
the change of guard in Japan.
All indicating the pace at which the world is transforming. The landslide
victory of the Democratic Party of Japan (DPJ) on August 30, 2009 was a result
of a massive protest vote against a worn-out, clique-ridden Liberal Democratic
Party (LDP) that ruled Japan
for over 50 years except for 11 months in 1997, when a non-LDP coalition ruled
the country.
Yukio Hatoyama, the President and one of the founders of the
DPJ in 1996, has taken over as the new Prime Minister of Japan. At 62, the new
leader faces many challenges including deflation, an increasing public debt and
unemployment which has touched a record high. While revival of the Japanese
economy might be the focus of the new Government in power, Hatomaya and his
team also realize the need for transforming Japan from within. He has promised
to reverse the process of over-centralisation of the Japanese government by
transferring more power and funds to local authorities, breaking the nexus
between the bureaucracy and the political rulers and pay direct greater
attention to the problems of rural Japan.
While planning to strengthen the country internally, the
Prime Minister also has plans for Japan internationally. Wanting Japan to be closer to Asia, Hatoyama has in an
op-ed piece in the New York Times entitled
“A New Path for Asia” revealed his vision of Asia's
future. He visualizes Japan’s
close partnership with China
as the American economic and military influence wanes. While believing that the
power of the US
is on the decline, he still attaches considerable importance to the US-Japan
alliance that will “continue to be the cornerstone of Japanese diplomatic
policy”.
While articulating Tokyo’s penchant
to move closer to Asia, one point Hatoyama however, seems to have missed out is
the need for Japan to
continue its growing partnership with India. Surprisingly, the election
manifesto for the election was almost quiet on the issue despite the
relationship going strong during the past few years.
While India-Japan ties have relatively a young history, the
two countries have moved close to one another in the last couple of years. Japan has been one of India’s major trade partners as
well as a key source of development assistance. During the past few decades,
India-Japan relations have undergone both quantitative and qualitative changes.
Economics has been the main driver of bilateral ties with cross-border trade
and investment increasing sharply. The partnership is no more lop-sided and has
both New Delhi and Tokyo looking for opportunities in each
other’s country.
One of the recent initiative to strengthen the India-Japan
partnership has been provided by Daiichi Sankyo’s acquisition of Ranbaxy, one
of India’s
leading pharmaceutical companies. The acquisition, while obtaining greater
access in India’s
huge pharmaceutical market, also marks the beginning of a deeper qualitative
involvement of Japanese firms in scientific capacity-building. It paves the way for utilization of India’s
scientific talent in advanced pharmaceutical research under Japanese
supervision. More investments of similar nature will expand economic space for
both countries by creating opportunities for utilizing their demographic and
skill complementarities.
The India-Japan collaboration is seen in many other areas as
well. Japan is playing a key
role in establishing a new Indian Institute of Technology (IIT) and is also
actively collaborating in developing an Indian Institute of Information
Technology, Design and Manufacturing at Jabalpur
in Madhya Pradesh, one of India’s
largest and relatively economically backward States. The upcoming institute can
make a significant difference to development of the State’s human resources and
prospects for future growth.
Japan’s penetration into India is indeed
note-worthy. Another leading Japanese firm DoCoMo, has acquired 26 per cent
equity in Tata Telecom, a major Indian telecommunication service provider. This
provides DoCoMo a foothold in the world’s second largest mobile phone market
after China
with an estimated customer base of 100-110 million. Establishment of India’s
first exclusive Industrial Park for Japanese firms in Rajasthan is another
example of both countries attempting to harness India’s advantages as an investment
location for mutual benefits. Japan’s
Daikin Industries Ltd, along with five other companies, is involved. The
project underscores New Delhi’s faith and
confidence in Japanese enterprise and capabilities and the virtuous role that
the latter can play in India’s
industrial growth.
Likewise, Indian companies too have begun investing in Japan. This is
part of a larger trend reflecting sharp acceleration in outward FDI from India. Outward
FDI from India
has increased from US$1.5 million in 2003-04 to US$17.4 million in 2007-08.
Indian FDI inflows into Japan
are mostly in IT and software.
While economics has been going strong between the two countries,
India and Japan also
appreciate each other’s geo-political significance in the Asian region while
sharing common concerns. All these imperatives have been instrumental in
elevating India-Japan relations to a new level of partnership based on shared
interests and challenges. Both New Delhi and Tokyo are collaborating within the East Asia Summit (EAS),
an effective forum for articulating Asia’s
views and projecting its strategic interests. Due to its inclusivity and the
potential to provide global risk diversification to members, there is a strong
case for EAS continuing to function as a key forum for articulating Asia’s views to the rest of the world.
Japan has been actively supporting greater Asian economic
integration as is evident from its proposing the ‘Comprehensive Economic
Partnership in East Asia’ at the 13th Consultations between ASEAN Economic
Ministers and the Minister of Economy, Trade and Industry of Japan (AEM-METI).
This initiative, under the aegis of EAS, covers several key issues such as
trade in goods and services, cross-border investment and intellectual property
and aims to strengthen regional competitiveness by promoting growth of
efficient production networks. India
is also committed to this initiative launched by Japan.
The Joint Declaration for Security Cooperation entered into
by the two countries in October 2008 marks a milestone in bilateral ties. Japan has similar security cooperation
arrangements only with the US
and Australia.
India’s entry in Japan’s core group of allies underlines the
critical significance it has acquired in Tokyo’s
strategic perception of the Asia-Pacific. The declaration focuses on a variety
of areas for cooperation which include joint military exercises, disaster
management and counter-terrorism. In order to deepen security cooperation, New Delhi and Tokyo
have also agreed on expanded collaboration between the Indian Space Research
Organization (ISRO) and the Japan Aerospace Exploration Agency (JAXA) in
disaster management.
The list of cooperation between the two countries is thus endless.
The ties have been strengthening. With new dynamics at play in the 21st
century, it is quite possible that the relations between the two Asian players
will continue to improve. However, till now there has been no signal from the
new Hatoyama Government that moving closer to India is amongst its top priorities.
---INFA
(Copyright,
India News and Feature Alliance)
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LOVE IN TIMES OF GLOBAL WARMING, by Nelofar Currimboy,1 September 2009, |
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SUNDAY
SHORT STORY
New
Delhi, 1 September 2009
LOVE IN
TIMES OF GLOBAL WARMING
By Nelofar
Currimboy
‘Dear Mum n Papa,
Since it’s clear that you are never
going to let us marry, Saif and I have decided to end our lives together by drowning
at Surajkund, Haryana. Please don’t try to find us. Love Nisha.’
After sealing the envelop, Nisha
tiptoed to the living room and left it in a prominent place. Before walking out
she stopped to check her make-up before the mirror. After all, the media would
swoop down to cover the tragedy, and her face would be in every city paper.
Dead or alive, she would hate to be seen looking any less than smashing.
She heard Saif revving up the engine
of his Harley Davidson mobike and jumped onto the pillion seat, her long hair
flying with the wind dramatically. “Nisha darling,” said Saif apologetically
“you are choking my lungs. Can you loosen your grip please”? “How rude of you.
Do you know what I feel at this moment, besides we will both be dead in a few minutes
and you are worried about your lungs”, shot back Nisha. “Okay girl but I need
to breath to ride this bike, so why don’t I sit behind and choke you and you
try doing this.”
Nisha was looking upset but what’s a
little tiff between lovers, she thought with a smile. The bike took the steep
incline to the ancient Surajkund water reservoir and slowed down on the rugged
steps. Holding hands they walked down the jagged steps. “I am keeping my eyes
closed Saif,” whispered Nisha. “I want you to lead me till we are at the edge
of the water.” Her feet were searching out every step while Saif was staring
down. “Nisha", he screamed. “What”, she said opening her eyes. “There is
no water at all.” They looked down at a pit of hot earth. “Oh no”! Now how do
we drown,” she asked.
“Well dear this was all your idea,”
replied Saif. “Mine?” “Didn’t you say you wanted to die in a place that was
rich in history,” he added. Nisha started sobbing. “I can’t go home and tell my
parents that we’ve postponed our plans for tomorrow.” “Don’t worry baby, just
trust me, and get on the bike.” Nisha climbed on meekly. “Where are we going
now,” she asked. “About half an hour down this road is Badkal Lake,
remember.” “Oh yes I do, that’s even better than Surajkund, that’s the place we
went boating on our second date,” said Nisha excitedly. “You got it girl,”
replied Saif.
But he hadn’t bargained for the long
winding road with its steep inclines and dips, and that Nisha was prone to
bouts of motion sickness. When he first heard a gurgling sound he thought it
was his Harley Davidson protesting about the desi road, till he felt something wet on his shoulder and a huge
glass of curdled milk dripped down the front of his shirt. “What’s this",
he screamed stopping the bike on the muddy edge of a cliff. "I am sick, can't you see .I wanted to
die not be tortured before dying". "Trust me", said Saif trying
to pacify Nisha. "Trust you, did you say trust you, you can’t find a drop of
water for us to drown in, in this whole country and I should trust you,” she
angrily replied.
He pulled off her Louis Vuitton
scarf and wiped her face and clothes, then he took off his shirt and threw it
to the side with the scarf. “Do you know what you just did?” “What,” said a
confused Saif. “You just threw away my LV
scarf. It cost me Rs 20,000 and besides it’s sacred.” “Come on girl stop
getting hysterical, it would have sunk in the water in any case.” “Saif you
don’t understand, that was a sacred way for it to go, that's how it deserved to
go. It’s an LV.”
“Get on,” said an irritated Saif cutting her LV commiserations short.
The last lap of the ride to Badkal Lake
was in complete silence and as the mobike reached the edge of the bandh wall there was a heavy air between
the two. The checkpost policeman let them pass as a romancing couple. ‘Can I
have my last diet coke, Saif?” “Sure, and I will have my last Marlborough light,” he replied. They sat on
the steps leading up to the reservoir and for a moment it seemed the plan was
back in place and so was the mood. “Okay now girl are you ready?” “I am”, she
whispered with a dramatic tone to her voice. “Then hold my hand tight as we go
up the steps.” “I want to shut my eyes and chant,” said Nisha. She could hear
him chanting the name of his God too, and she knew this was the perfect end to
their love story.
"Nisha open your eyes,” he
screamed pointing to the cracked dry and muddy expanse where once there was a
water bed. “Oh my God,” she shouted, “what are you doing to my life, I mean my
death. Is this some kind of a prank?” “No Nisha, no trust me, I had no idea
that Badkal Lake was a dry pit now. I mean who would
ever imagine.” Saif’s mind was racing for options. His shirtless chest freezing
in the morning chill didn’t help matters either.
“I know just the place,” he
remarked. “Sorry, this time I need to know the plan,” Nisha retorted. “Just 20
minutes down this road is the Dhauj
Lake, remember in the
tenth class we had gone on this trek in the Aravali Hills and sat on a
beautiful river bed,” mumbled Saif tripping over his words. “Okay, scream”,
said Nisha looking clearly exhausted. The ride to Dhauj was bumpy and the pit
holes that appeared every few seconds left the Harley Davidson groaning.
Finally they reached the Aravali Hills. Climbing up the two hundred steps holding
hands, the lovers felt suitably tortured by the world.
“It was every bit worth it. This is
the most amazing place to depart the world from,” said Nisha. She had barely
finished her sentence when the sight of baked earth stung her eyes. “You
idiot,” she screamed at Saif. “Look at that.” Saif looked down in horror at the
dry arid waterbed with stray shrubs growing. “There,” he pointed out at what
seemed like a mirage, ‘there seems to be some water there.” “It’s a puddle, it
won’t even drown my heels,” yelled Nisha. “Look Nisha this is not my fault.”
“Oh yes it is, you are the man, you are the one who takes care of everything,”
she angrily asserted. “I had suggested the Yamuna, but you wanted a place with
some history,” argued Saif bounding down the steps with Nisha following, her
stilettos in her hands and tears of frustration rolling down her face.
A bunch of village boys welcomed
them with claps, and then one of them took out a sling and hit the front tire
of the Harley Davidson with a sharp stone. “You rascal, I’ll get you,” said
Saif darting towards the kids. Almost on cue, a mule cart appeared. “You want a
ride,” asked the man pulling the animal to a side. “Your fancy bike won’t get
you anywhere now.” Saif looked on in frustration even as Nisha's voice had
become a cacophonic sound of anger by now. A few boys were loading his bike on
the cart. “Where to,” asked one of them. “‘Drop us to a petrol pump on the main
road,” said Saif avoiding thinking of his next move.
Holding the Harley Davidson the two
defeated lovers sat in the mule cart --- on a journey they could never have
imagined. It was dusk by now and the sun was setting. Suddenly, the headlights
of a Mercedes were shining in their eyes and waiving at the cart to stop. Out
jumped Nisha’s parents, grandmother and sister. “Nisha darling, thank God,”
they said hugging her. “We will be more than happy if you marry Saif,” they
chorused. “What marry this nincompoop! Never,” replied Nisha. As her completely
confused parents stared at her, a shirtless Saif looked on. ---- INFA
(The writer
runs a cosmetics firm, is a poet and has written a book on her mother Shahnaz
Husain. She has created marquee products like Shahnaz Herbal's Gold Gel, Pearl and Flower
range.)
(Copyright India News & Feature Alliance)
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Pak Modifies US Missiles:EYES INDIA, NOT TALIBAN AS THREAT, by Monish Tourangbam,1 September 2009 |
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Round The World
New Delhi, 1 September 2009
Pak Modifies US Missiles
EYES INDIA, NOT TALIBAN AS THREAT
By Monish Tourangbam
Research Scholar, School of International
Studies, JNU
Pakistan attracts attention yet again for
its notoriety. According to a New York
Times report, both Obama’s senior administration and the US Congressional officials have accused Pakistan of
illegally modifying American-made missiles sold for defence purposes. Alarm
bells are ringing in New Delhi after this
reported military adventurism by Pakistan
is largely seen as being directed against India.
The fresh accusation is based on the
nature of a suspicious missile test Pakistan conducted on April 23 this
year. Islamabad has modified the US supplied
Harpoon anti-ship missile to hit land-based targets. The news comes at a
crucial period when Islamabad
is struggling to maintain stability and continues to ask the Obama
administration for increased economic and military assistance. The aid is
largely sanctioned as a means to support Pakistan’s fight against terrorism.
However, Islamabad has time and again used the aid, meant
for civilian purposes to bolster its military infrastructure. Despite its
stated war against terrorism and military operations in the Swat valley, Pakistan’s obsession with India as a
threat to its existence holds sway. The recent report may trigger an intense
round of arguments and counter-arguments by the US
and Pakistan.
According to American officials, the
changes are a violation of the US Arms Control Export Act. Since the
modifications seem to have been done with India as a target in mind, the near
future might not be very bright in terms of India-Pakistan composite dialogue.
Moreover, the barrage of domestic criticism that the Manmmohan Singh
administration faced after the joint statement at Sharm-el-Sheikh, seems to
have hardened New Delhi’s position against Pakistan.
A domestic outcry was witnessed
against the UPA Government for being soft on Islamabad’s
accusations of New Delhi’s
interference in Balochistan. This led to India
insisting on Pakistan
to take serious and sincere actions against the terror operations being hatched
on its soil, particularly Hafiz Saeed, the Jamaat-ud Dawa
(JuD) chief and mastermind behind the Mumbai attacks. However, with the Lahore
High Court ordering the release of Saeed, matters reached a dead-end.
Worse, Pakistan’s
Interior Minister Rehman Malik in a flimsy
counter-attack based on half-witted reasoning, said that the 26/11 attacks
could have been averted had Islamabad got information
from New Delhi.
But the basic question should be: Is it Delhi or
Islamabad that should be forwarding information
in case a plan to attack was being hatched in Pakistan? In all this mess,
the only silver lining for India
has been its success in convincing the Interpol to issue a red corner notice
against Saeed.
The latest accusation
against Islamabad for tampering with US missiles
comes at a critical time when the Obama administration is asking Congress to approve $7.5
billion in aid to Pakistan
over the next five years. At the same time, the Obama administration is
pressing a reluctant Pakistani military to focus its efforts on fighting the
Taliban rather than expanding its nuclear and conventional forces aimed at India.
The latest dispute, according to
American officials, is over a conventional weapon, modified from the Harpoon
anti-ship missiles that were sold to Pakistan by the Reagan
administration as a defensive weapon during the cold war. Nevertheless, the
accusations implicitly point to the growing concern in Washington
over the speed with which Pakistan
is developing new generations of both conventional and nuclear weapons.
Analysts believe that Pakistan’s
nuclear arsenal is expanding and being developed in a pace unseen in other
countries. In May this year, Pakistan
conducted a test firing of its Babur medium-range cruise missile, a weapon that
military experts say could potentially be tipped with a nuclear warhead.
Further, huge investments are being
pumped into the development of conventional weapons which have no utility in fighting
terrorism. The presumed threat from India
has been a permanent factor in the formulation of Pakistan’s foreign and security policy
since inception. In view of the above, many are critical of the huge aid package
being proposed by the Obama administration. The critics are worried about the
aid money being misdirected toward furthering the confrontationist posture
toward India.
Undeniably, Pakistan has
been waging a half-hearted fight against many extremist groups that it had helped
breed and nurture. Thus, the critics of the aid package have asked the US
Congress to be cautious and objectively view the situation before passing it
forward. In another notorious but not a surprising move, a Pakistan court recently ordered the government
to lift any remaining restrictions on Abdul Qadeer Khan, the Pakistani
scientist who is accused to have spread nuclear technology to Iran, North Korea
and Libya.
Clearly, this is a slap in the face
of the United States
and the international community. A.Q. Khan is still regarded as one of the
principle challenges to non-proliferation goals. He is believed to be holding
many secrets that could connect the dots and the Is to get a complete picture
of the international nuclear black market. If the US
is keen to make its proliferation goals more legitimate in the eyes of other nations,
then it has to take action and not turn a blind eye to misdeeds of Pakistan-- an
ally in the Afghan war.
Apparently, the charge regarding the
missiles’ modification was made in an unpublicized diplomatic protest in late
June to Prime Minister Yusuf Raza Gilani and other top Pakistani officials. Citing
another violation of its law, the US
has also accused Islamabad
of modifying American-made P-3C Orion reconnaissance aircraft for land-attack
missions. Obviously, Islamabad
has denied any such tampering with American-made weapons and reportedly invited
US officials to visit and clear their doubts.
Speaking anonymously, an official said the American accusation was
“incorrect,” and that the missile tested was developed by Pakistan, just as it had modified North Korean
designs to build a range of land-based missiles that could strike India. Notwithstanding
the alleged origin of the weapon in dispute, the crux of the argument is that Pakistan is indeed investing heavily to develop
military infrastructure which can only be explained as directed toward India. The
weapon in question would highly enhance the striking capability of the
Pakistani navy on land- based targets in India.
This is happening at a time when Pakistan’s primary challenge is to fight terrorism
on its own soil and not an illusive threat from India. The rapid rise of the
Taliban and its spreading tentacles is what Islamabad should be most concerned about. Hence,
it is high time that the Pakistani establishment concentrates on keeping its
house in order rather than waste crucial aid money on military infrastructure
to provoke India.---INFA
(Copyright,
India News and Feature Alliance)
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Judges’ Assets:LIFTING VEIL ON JUSTICE, by Poonam I Kaushish, 5 September 2009 |
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POLITICAL DIARY
New Delhi, 5 September 2009
Judges’ Assets
LIFTING VEIL ON
JUSTICE
By Poonam I Kaushish
Three cheers to Delhi High Court judge Ravindra Bhatt. In a
brilliant judgment he turned turtle the belief that ‘Your Lordship’s” were
infallible and asserted that all power, including judicial power, is
accountable to the highest law of the land — the Constitution. Thus, in one
fell stroke he not only brought the Justices down from their high judicial
pedestal on level with the “little man” but also ushered in a new chapter of
accountability in the judiciary thereby hoping to restore the faith of the
public in the judiciary.
In his 72-page judgment Bhatt said: “All powers, and
judicial power being no exception, is held accountable in a modern Constitution.
Holders of power are expected to live by the standards they set, interpret or
enforce, at least to the extent their office demands. Judging is not a job, it
is a way of life. Wherever I enter the court room, I do so with the deep sense
that, as I sit at trial, I stand on trial.”
The landmark order was pursuant the Supreme Court appeal to
the Delhi High Court against the Central Information Commissioner (CIC) order
that the Chief Justice of India (CJI) should make public judges’ assets,
following a request by an activist under the Right To Information Act. Justice
Bhatt was all for transparency and
accountability in higher judiciary, by stating that the CJI was a "public
authority" under the RTI and had to make public the information on assets
declared to him by judges.
“Declaration of assets by SC judges is information under
Section 2 (f) of the RTI Act." The Act, he emphasized was “enacted to arm
citizens with the mechanism to scrutinize Government and public processes and
ensure transparency.” It would be
"highly anomalous to say that judges have no obligation to disclose their
personal assets as standards of disclosure for the legislators,
parliamentarians and administrators were set by a Supreme Court order.”
Describing his “humbling experience” and transparency as a
"powerful beacon", Justice Bhatt disagreed with the CJI
Balakrishanan’s contention that the Apex Court’s 1997 resolution of giving
“personal information” was “voluntary and confidential”, a mere moral duty and
not a legal obligation inviting sanctions in case of non-compliance. He was
firm in his view that in the exercise of the legitimate jurisdiction to impact
people’s lives, property, liberties and individual freedoms, judges have an
obligation to disclose their personal assets to someone or an authority. “The
judge, the verdict aid, was a casual law-maker, just filling in the gaps,” he
added.
Rejecting the Apex
Court’s stand that the CJI held the asset
declarations in a fiduciary (held in trust) capacity and disclosing it would amount
to breach of trust, the High Court held that the argument was without
substance, and said the CJI does not hold such declarations in a fiduciary
capacity or relationship. However, Bhat made a concession. He suggested that
the CJI could evolve some uniform standards and modalities for declaration of
assets by judges to bring in clarity.
Be that as it may, some legal luminaries still harbour
reservations, given that the disclosure might embolden ‘dissatisfied’ and
unscrupulous lawyers-litigants to abuse and raise questions about the judges’
wealth and compromise the independence of the judiciary.
Imagine a judge enquiring into allegations of
disproportionate wealth of a ‘corrupt’ neta
or babu wherein during the
proceedings, the petitioner could ask the judge, “Before questioning me about
my wealth, first explain how you obtained yours?” Also picture: A litigant
accuses a judge of passing a judgment for monetary considerations and claims
that the assets declared are forged and under valued. What then? Is the judge
going to concentrate on the cases before him or explain his integrity?
However, many commend Justice Bhatt’s order. They argue that
transparency and accountability is the only way forward given allegations of
the enormous increase in corruption and misconduct of judges due to the lack of
accountability, specially in the lower level of judiciary. No doubt that there
could be frivolous petitions. Some to even pressurise the judiciary. But those
would be successful only if the judiciary has something to hide!
Arguably, if wealth has been acquired honestly why would a
litigant resort to such low tactics and why should any member of the judiciary
have fear? After all, aren’t judges expected to dispense justice without fear
or favour? Can fear of threats become the raison
d atre for lack of transparency. Remember, the judiciary, like Caesar’s
wife, must not only be above suspicion, but must also be seen to be so.
In fact, in many countries personal disclosures are
mandatory. The American 'Ethics of Government Act of 1978' requires that
federal judges disclose the source and amount of personal and financial
information other than that earned as employees of the US government each year.
They must also reveal from where and whom, description and value of gifts for
which the aggregate value was more than a certain minimal amount received from
a source other than a relative. South Korea,
Latvia and Mongolia have
similar legal provisions making it mandatory for wealth declaration.
To access information in the US,
a person has to submit a written application to access a copy of the
declaration of assets while in Mongolia,
the information is published in the government news magazine and placed on the
internet. In addition to examination by a public ethics committee, South Korea
mandates that property declarations be published in a public bulletin within a
month of submission.
South Africa enacted a law in 2008 that requires
judges to submit their 'registrable interests' to a custodian that is
responsible for auditing the declarations. In Philippines,
wealth declaration cannot be used for commercial purposes though inspection is
allowed and contents can be published in media while in Russia, the
information must be published within a week.
Sadly, the Indian judiciary enjoys the opaqueness of the
iron curtain. As former Chief Justice Bharucha remarked judges are mere mortals
given to temptations. According to him 20% of the judiciary was reportedly
‘corrupt’. Recall, the UP crisis in 2007 when the nation reeled under news that
a Supreme Court judge, High Court and District judges had received benefits
from siphoned off employee funds. What to speak of last year’s corruption case
of mistaken identity that rocked the Punjab & Haryana High Court. Wherein Rs
15 lakhs was paid to the wrong judge! Instead of Nirmal Yadav to Nirmaljit Kaur
for a land deal. The CBI recommended prosecution but nothing came of it.
In 2002 too, the then Chief Justice Sahariya report
deprecated the conduct of Mehtab Singh Gill. And again in April 2006 the State Vigilance Department Court
taped a conversation between the judge and some citizens. Earlier, three judges
were taken off work. One was asked to proceed on leave before retirement, the
second was absolved and the third was Gill again. The result? Zilch. In 2003 Delhi Court
judge Shamit Mukherjee resigned over his alleged complicity in a DDA scam.
Questionably, not only judges, it is high time that the
Executive must also be brought under the public scanner. All IAS and IPS too should
come forward to declare details, either in their departments or in a national
directory specially created for the purpose. We can no longer pretend that
corruption does not exist. It does.
In sum, the judges cannot hide behind the iron curtain and demand
immunity. After all, immunity leads to impunity. They need to remember that the
Lady of Justice is blindfolded but her scales of justice are equal for all. Et tu Your Lordships? ---- INFA
(Copyright India News & Feature Alliance)
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