Economic Highlights

New Delhi, 4 July 2009

Mamata’s Kolkata Budget

MIX OF SPARK & BUREAUCRATIC TRAP

By Shivaji Sarkar

The earthly Maa, Maati, Manush, Mamata Banerjee was expected to bring in the people’s vision into her budget. Unfortunately, she has got caught in the bureaucratic trap. The innovation she may have had in her mind appears to have got lost. She got enamoured by the high-speed but low-achievement syndrome – bureaucratic malaise afflicting the Indian Railways for decades.

Mamata made a candid admission: there was nothing hunky dory during the last five years and promised to come out with a White Paper on it. She also called her predecessor Lalu Yadav’s projection as unrealistically high and as the new Railway Minister pointed out that at least one Rs 3400 crore public-private partnership (PPP) was mere publicity, so she had to give it up.

This apart, the revenue projections too have been reduced from the interim budget projections, which under pressure from Lalu did not take into account the slowdown in loading of goods to two per cent of the target last fiscal. Consequently, gross revenue projections have been reduced to Rs 88,419 crore from Rs 93,159 crore of the interim budget. Overall surplus has too been brought down to Rs 2,642 crore from 5,572 crore of the budget. However, the Railways borrowings and central budgetary support have increased to Rs 15,800 crore, a raise of Rs 5,000 crore thanks to the Finance Minister.

In such a situation, instead of announcing new trains, many of which are often not introduced, she could have taken a pique at trains like the pride of the 50s –the Janata Express. It was a new classless fast train with the latest cabin type coaches, a first those days. The train still runs, a favourite of the poor, but is in ramshackle condition. No railway minister has ever taken an interest in it. Even earthly Mamata missed the opportunity to revive the Janata and similar other trains. Sadly, the Railways do not need gimmickry by reintroducing all that is there but strengthen what it has with it.

Though the Tatkal scheme has been streamlined a bit, it has not been reduced to Rs 100 as claimed in her speech. It is Rs 100 for Sleeper Class and Rs 200 for AC Class as fixed charges plus there would be 10 and 15 per cent surcharge on the basis of the fare. Her speech neither indicates that the seats in this category would be reduced. Clearly, she needs to make a clear departure from Lalu’s unethical convoluted Tatkal system.  

Again, there is little substance in her Duranot non-stop trains. The Sampark Kranti non-stop train was introduced by the NDA railway minister Nitish Kumar. Mamata should have reviewed the technical and track capacity of the railways before introducing the so-called new trains. She should have ensured a culture of sustaining and improving what exists. Introduction of every new train has only resulted in the slowing down of the existing trains including the Rajdhanis and the Shatabadis.

In her reply, to the Budget she still has the option to introduce her new vision. She has it. She only needs to push through it, overlooking bureaucratic objections. Mamata also needs to introduce hop-in and hop-out long-distance trains free from harassment by railway ticket conductors.

The Yuva train also looks impractical. It is supposed to be 1500-km all-seated air conditioned train for Rs 299 and Rs 399. The youth may be strong but can anyone endure a 20-hour journey sitting all through?

There are, however, some sparks. But these are restricted to her Kolkata vision. For years, journalists have been agitating about the Basumati press, a historic institution with nostalgic connection for the Bengalis during the freedom movement. Bengal’s elite was associated with it. The State government did little by taking it over to finally virtually shutting it down. Mamata’s offer to take it over for use by the Railways is not only to restore the Bengali pride but also to resuscitate an institution.

In Europe, many such institutions are kept alive for the new generation take a glimpse of a living past. It is called industrial archaeology. By default Mamata may have introduced this here. But, she wants to play politics too. The Basumati press is with the Left Front government. If it parts with it, then it draws flak from its cadre and if it doesn’t it loses popular support. Either way Mamata is a winner.  

She has also exhibited that spark in the takeover of the wagon units of Burn Standard and Braithwaite, under the Ministry of Heavy Industries. The companies, based in West Bengal, are in poor health. Their closure would lead to job losses. The decision to take these over in the so-called “reforms’ – privatise and perish - era shows her real concern and “mamata” for the Bengal’s poor. She has also tried to exemplify that an elected leader, rooted in grassroots can go against the lobbyist-oriented politics of “reform generation”. It would not cost the Railways much but would instill hope among the poor - a real prescription to counter recession.

At the same time, the Eastern part has benefited least from the reforms era. Her concept of using the railway land along the freight corridor as land bank to set up industry is again a clear rebuff to those propagating Nandigram-type special economic zones (SEZ) or Singur-type land acquisition. How much it earns for the Railways is not the issue, but creating industry on the existing land, next to the freight corridor, should be considered an innovative approach. It would certainly make transportation easier and cheaper if properly implemented. Importantly, it could also bring in an industrial revolution in the East, long stalled by the conservative socialist-minded people.

Likewise, the past five years had ignored the wagon manufacturing sector. Now the Railways has decided to acquire 18,000 new wagons to replace its ageing fleet. It would give a boost to the Railways PSUs apart from making goods movement, often stuck by derailments caused by poor rolling stock, smoother.

The PSUs that are likely to gain from her new policies are Ircon International, a turnkey infrastructure construction company, Railtel (Telecom), Rites and Indian Railway, Tourism and Catering Company (IRCTC). The allocation for new railway lines has been increased to Rs 2921 crore from Rs 1100 crore in the interim budget. Apart from taking care of the safety aspects, the move would also generate business for the sagging public sector SAIL.

But Mamata needs to widen her vision. She need not have robbed Bihar of the two projects to create a new coach factory at Kanchpara in her State. Possibly she has settled the score of losing Dhanbad from the Eastern Railways. Well, the budget has some difference but it is not different. Would she be able to revise it by the time she prepares her reply to the budget debate? ---INFA

 (Copyright, India News and Feature Alliance)

Round The World

New Delhi, 1 July 2009

End of Era In Iraq

US WITHDRAWAL TIMING TRICKY 

By Prof. Chintamani Mahapatra

Research Scholar, School of International Studies, JNU

From this month, the US troops will no longer be visible in cities or urban areas of Iraq in their combat role. This change in role, after six years and three months of military intervention in Iraq would mark the beginning of the end of US troops’ presence there.  

A large number of Iraqi people have come out on the streets to celebrate what they call restoration of Iraqi sovereignty and an end of foreign occupation. Iraqi Prime Minister Nour al-Maliki himself declared victory in the war, annoying the Americans in the process.

Clearly, President Barrack Obama has been a consistent opponent of the US military intervention in Iraq. He fought the 2008 presidential election promising, among other things, an end to the US troops’ presence in Iraq. While Republican candidate John McCain considered continuation of the US presence essential from the perspective of safety, security, prestige, President George Bush had already engaged the Iraqis for months in negotiations to conclude the SOFA (Status of Forces Agreement) with a distant goal of ending US military operations.

It is on the basis of SOFA that the US troops will no longer patrol, guard or fight insurgents and militants in the urban areas of the country. The troops will go back to their forward bases and remain there until called for help by the Iraqi Government. As per the agreement, some US soldiers will stay back in their capacity as advisors and will not indulge in any combat.

By the time, President Obama gets ready to contest the next presidential election in 2012 there will be no US soldiers on Iraqi soil. He then would be in a position to claim that he delivered what he promised during the 2008 elections. As a candidate, Obama had vigorously argued against the Iraq war describing as a blunder.

But will President Obama accept defeat in Iraq at the hands of the insurgents? Certainly not. Why should he go down in history as a President who was responsible for ending the war in Iraq, even if it is an unpopular war, by conceding defeat to the insurgents? It would be a larger political disaster than what President Richard Nixon faced in Vietnam. After all, the GIs were battling not only insurgents in Vietnam but also North Vietnamese military, which in turn was backed by the Soviets and the Chinese until after the Sino-US détente. In Iraq, on the other hand, the insurgents enjoy no substantial support from any major or even minor power.

Thus, the claim by the Iraqi Prime Minister that the withdrawal of US troops from urban areas to start with and the total planned and phased withdrawal from the country by the end of 2011 is a considerable diplomatic challenge for the Obama Administration. The deadly strike by the insurgents’ days before the July 1^st deadline for ending US military operations in urban centres is an additional challenge. Whoever may be the President now, the US will always be blamed for leaving Iraq more insecure than before the US military intervention.

There is little doubt that the American soldiers who bravely carried out the orders from their political bosses in Washington for years would not like to return with the description: “mission failed.” And, on their part, the Iraqi insurgents will perhaps not allow the Obama Administration to declare victory and exit.  The 130,000 troops that will stay back in Iraq until another two-and-half years will have to assume tacit, if not direct, responsibility for law and order disruptions and continuing political violence.

It took about half a dozen years for the implementation of the Vietnamization policy of the Nixon Administration. Indeed, the Obama strategy is similar in the sense that the US troops have been training the military police of Iraq to assume total responsibility for law and order. If the Iraqi forces succeed, Washington would certainly claim success. But if the Iraqis fail, will the Obama administration accept the blame?

By winding up the military operations in Iraq, President Obama admittedly intends to focus more on Afghanistan and Pakistan. But then 130,000 US troops will continue to stay on in Iraq for more than two years. That means, it is not going to be an either or situation at least in military terms. For that matter, even the “AfPak” strategy involves training and use of local forces to fight the Taliban and other insurgents. The current surge of US troops in Afghanistan will either remain the same or may increase further.

But the real challenge for the Obama administration will come from the fact that any sign of or interpretation of US failure in Iraq would only embolden the Taliban and Afghan insurgents. President Obama’s Cairo speech signaled to the Islamic World that the US, under his administration would alter the Bush policy and peacefully engage the Muslims around the world. But then he delivered that great speech, while the US troops kept on militarily engaging the Iraqi, Afghan and Pakistani insurgents. However, the US withdrawal from Iraq may actually be understood as the weakness of the only superpower and that there may be a demand for similar withdrawal of US and allied forces from Afghanistan and Pakistan. Will Obama then consider US military involvement in South and Southwest Asia as a costly affair and spell out an exit strategy?

The fact remains that while the US disengagement may be economically cheaper and militarily not such a big defeat, its fallout in the region would be negative. This is not to argue that US interventions in these countries are a welcome development. What is significant to note is that disengagement at the time and pace of what the US desires would mean more chaos and instability in the region. And such a scenario would be more expensive for the regional countries than for Washington.

Undoubtedly, Iraq, Afghanistan and Pakistan were politically more stable before the American intervention. Today, the three countries have become more unstable and poorer. Consequently, it is the responsibility of the US to leave the region more peaceful at the time of its departure.

Here the idea is not to recommend prolonged US military presence, but to call for more multilateral and cooperative approach with plural decision-making in resolving such contentious issues. ---INFA

(Copyright, India News and Feature Alliance)

Political Diary

New Delhi, 4 July 2009

Political Maryada

ALL ABOUT KHAAS, NOT AAM AADMI

By Poonam I Kaushish

Our Right Honourables never cease to amaze. Daily we are treated to some mindless antics, inane tantrums, silly shenanigans et al. But last week took the cake. Two MPs hit the headlines by drawing a new lakshman rekha of political maryada: slapping a public servant and pressurizing a sitting High Court judge to influence his decision in a case. Frankly, it’s much ado about nothing given our present political culture, which rubbishes morality, probity and accountability as old hat. Come on guys get real, our khaas aadmis are above the law and rule by law. Governed by the distorted Orwellian concept of democracy in vogue: They are more equal than others!

The fracas started when a Congress MP from Andhra Pradesh slapped a bank manager of the Andhra Pradesh Grameen Vikas Bank, ostensibly for not releasing a loan to SC/ST beneficiaries in his district. Instead of requesting him, the MP chose to exert his might, “how dare the manager speak to me in the language which he did?” Resulting in the bank filing a police case against the MP under the IPC for assault and the employees threatening to go on strike. Luckily, all ended well with the Congress High Command displaying its heavy hand and got its MP to apologize to the manager.

However, all hell broke lose when Justice R Regupathi of the Madras High Court told a startled open court that “A Union minister talked to me. He sought to influence me to release a medical student and his doctor-father in a Central Bureau of Investigation (CBI) case concerning a forged mark sheet on anticipatory bail." Adding, that unless an unconditional apology was tendered, he would incorporate details of the conversation in his order. He then referred the case to Chief Justice H L Gokhale with a request that the matter be posted before another Bench for appropriate orders.

A cornered Government was stumped. Given the strong displeasure expressed by the Chief Justice of India K G Balakrishnan that the courts would not brook any interference from politicians in justice dispensation. He expected strong action to be taken to set an example that the Government means business when it comes to ensuring an independent environment for judiciary without any interference from any section. Added the Opposition, “Since the allegation has been made by a judge against a minister, we expect the Prime Minister to examine the matter at his own level and sack the Minister.”

The ruling Congress scurried for cover under the pretext that it was “very difficult” to proceed further in the matter till the name was revealed by the judge. But trust the AIADMK supremo Jayalalitha to let the cat out of the bag. “It was DMK’s Union Minister of Telecommunication Raja.” Who of course, denied any knowledge. Even as all eyes are now riveted on how the Prime Minister intends dealing with this serious issue against the clamour for the sacking of the Minister. But, this is easier said than done given that the mantri is a khaas of a khaas Party and its leader.  

Arguably, both MPs were merely doling out natural justice to their janata. Perhaps on the plea that an MP and Minister’s posts are temporary and cannot take precedence over the permanent role as ‘the andataas of the aam aadmi.” No matter that "use" of position and office is dishonourable. Is it correct for a jan sevak to abuse his official position to solicit favours? Does this not smack of unduly influencing the public servants?

Needless to say the Government finds itself between a rock and a hard place. It would be extremely difficult to justify the continuation of the Minister in the Cabinet. Any attempt to set-up the conventional way of directing an inquiry into the whole episode would be viewed as an attempt to doubt the credibility of the Judge. It would also be seen as an effort to compromise the moral values as a trade-off for an ally’s support.

Whatever the outcome, the moot point is that it goes against the tenets of democracy underscored by the political morality it entails. Alas, over the years we have become used to the ‘more equals’ playing havoc with the people and getting away with it. Wherein there is a wide chasm between the aam aadmi and our jan sevaks. And the increasing frustration and disconnect over the vandalisation of institutions by the so-called public servants.

Why, only last year we stood witness to the shenanigans of another DMK Union Minister TR Baalu when as Shipping, Road Transport and Highways Minister in the erstwhile UPA Government he “put in a word” to the then Petroleum Minister Murli Deora to provide gas to family-owned King Power Corporation. Being run by his sons after his resignation as Managing Director subsequent to becoming a Union Minister. After all, what was the big deal about him helping his sons? Did you expect him to help others’ children?

Recall, when the media exposed the Delhi Assembly for having met fewer than 10 days during a legislative session, instead of hanging their head in shame, the MLAs questioned the newspaper's right to investigate their behaviour. Breach of privilege, they collectively yelled. So what if we pay for them lazing around doing no work.

Clearly, the Prime Minister and the Government needs a quick recap of history. Specifically, the infamous Mundhra scandal which rocked Parliament in 1958, leading to the then Finance Minister TT Krishnamachari’s resignation. The cause celebre was the Government asking the Life Corporation of India to purchase Rs 12.4 million worth of shares in six companies belonging to Calcutta industrialist Haridas Mundhra to bail him out.

The nation-wide furore led to the appointment of the Justice Chagla Commission. During the inquiry, Krishnamachari tried to distance himself from the LIC and the actions of his Finance Secretary. However Chagla held that the Minister was constitutionally responsible for the actions of his Secretary and could not take shelter behind them nor could he disown their actions.

What to speak of Rajiv Gandhi’s action when two French intelligence officers stole documents from the PMO in 1985. In the ensuing furore, Rajiv made a statement in the Lok Sabha about the incident and his Principal Secretary P C Alexander resigned. Though he did not accept responsibility for the shocking negligence in his office, he nonetheless resigned to uphold high moral principles. Nowadays, the only resignation one hears of is when the judiciary virtually forces the Prime Minister’s hand to get a Right Honourable to resign.

Forget resignation, mum’s the word when it comes to our MPs giving a proper account of their MPLAD money, let alone their perks? How many MPs are willing to put their income tax returns open to public scrutiny? None heed Gandhiji’s wise words even as they swear by him. Said he, “Ministers should not live as ‘sahib log’ or use private work facilities provided by the Government for official duties.” Nothing could be farther from the truth today.

Yesterday’s princes have been replaced by Ministers, and MPs, who see themselves as winners. Holding offices ‘tightly’ not ‘lightly’.  Not one Minister is willing to give up his colonial bungalow and be anything less than the Burra Sahib! Lutyen’s Delhi is being absurdly treated as a holy cow.

The tragedy of India is that instead of true democracy: by the people, of the people, for the people we have reverted back to a feudal democracy. MPs are the new rajas in their red beacon cars. Barricading themselves from growing public anger with more security and erecting metal nets at rallies.

Imagine over Rs.108 crore worth of security paraphernalia has been installed at Parliament House to protect our netagan (sic). Ironically, from those who voted them in. Shockingly, the entrance to this high temple of democracy has been segregated: one for the jan sevaks, one for the aam aadmi. But, we are a democracy, sic!

Sadly, is this what our democracy is all about? Where the ‘more equals’ play havoc with the people and get away with it. At best a feudal democracy and at worst an autocratic republic. For how long? ----- INFA

 (Copyright, India News and Feature Alliance)

Round The States

New Delhi, 2 July 2009

Educational Reforms

STATES PUT ON ALERT

By Insaf

The unearthing of the ‘capitation fee’ scam in a medical college in Tamil Nadu recently has opened the can of worms in education. Wherein the States have now been put on alert with the Union HRD Minister Kapil Sibal making plain that he would no longer take a benevolent view of those caught violating the law. Talking to Insaf about his short-term 100-day plan and his vision of what he intends achieving in the next five years in the field of education, Sibal showed his intent to freeze all educational institutions seeking ‘deemed university’ status. Importantly, he intends setting up a University Regulatory Commission, on the lines of the SEBI to rein in malpractices in various colleges in the States. The agenda of the Commission would be to ensure transparency in the admission process, fees structure, facilities etc. offered by the institutions. Significantly, those found to be “not above board” would be de-recognized and they would be stripped of the deemed university status. However, to ensure that the students do not suffer, the Union HRD Minister underscored that the students would get their degrees from an affiliated recognized university.

Equally important, the HRD Minister is astonished by some States’ reaction to his sweeping educational reforms proposals, including making the Class 10th Board examination optional  and replacing the CBSE with a unified board for the entire country. Aiming to set the record straight he told Insaf that his reform proposals adhere to schools affiliated to the Central Board of Secondary Education and not the State Governments as erroneously believed. According to him, the issue of educational reforms pertains to the implementation of the long-pending Yashpal Committee Report on Education. Towards that end, Sibal has sought the views of renowned educationists, school principals and various parent-teacher associations. It’s another matter that BJP-ruled States like Gujarat and Chhattisgarh have come out in support of the proposed changes, while five Congress-ruled States — Maharashtra, Andhra, Assam, Rajasthan and Haryana have vetoed the Centre’s intentions. Clearly, winds of change are blowing over the much-needed Right to Education.  

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Centre No To MP Conversion Bill

BJP-ruled Madhya Pradesh’s bid to tighten the law banning ‘forced’ religious conversions is not going to materialize. The UPA Government has advised the President not to give the nod to the amendments in the MP Religious Freedom Act, 1968. The Act in its original form bans conversion by force, allurement or fraud. The amended bill, MP Dharma Swatantrya Abhiniyam (Sansodhan) Vidheyak, passed by the State Assembly in 2006, however, makes it mandatory for any person wishing to convert to inform the District Magistrate (DM) in advance. Besides, the priest or any other person involved in the ceremony is expected to do likewise, and the DM is to seek a report from the police Chief on the conversion being a result of force or allurement. With a difference of opinion between the State Attorney General and Solicitor General on the constitutionality of the Bill, the Governor sought the President’s advice. The latter will not give assent on grounds that the Union Home Ministry sees the changes as “being misused to harass anybody who intends to covert to another religion.” 

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Muslims, Dalits Demand Sub-quota

The Pandora box of women reservation is bursting at the seams, given the serious reservations expressed by many Muslim and Dalit organizations in various States as also political parties. Whereby all and sundry have stepped up their demand for sub-quotas within the proposed Bill to reserve women 33% of the Seats in Parliament and State legislatures for the fair sex.  Notwithstanding that the 15th Lok Sabha boasts of its first woman Speaker and a higher number of women MPs’. Terming the proposed Bill “unfair,” the representatives at a convention in the Union Capital last week asked its members to take to the streets and stop the passage of the Bill in its present form. Their argument: It would benefit only women belonging to either the upper caste or economic class and would end up being filled by politicians’ wives, daughters, sisters, daughters-in-law et al. Thus, a quota without a sub-quota (of backward classes and minorities) would serve no purpose. Obversly, however, women who came through sub-quotas would have little knowledge about legislatures, so what was the need for their inclusion? Where will the buck stop? Certainly, not this Parliament session.

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Another Blow To Left In Bengal

The Left Front’s 30-year rule in West Bengal is clearly on the wane. The Marxists got their second drumming in just less than two months of the General polls by the formidable Trinamool Congress-Congress alliance. The combine has won 13 of the 16 municipalities in the State, which went to the polls on June 28, as against five (One TMC, four Congress) in 2004. Of the 13 municipalities won, nine were wrested from the Left while four were retained. The TMC-Congress vote-share too has crossed the 50 per cent mark. If this is not bad enough to make the Left sit up, then there is worse news. The CPM has lost Asansol, South Dum Dum and Dum Dum  municipalities, which it had ruled for the past 48 years and 30 years respectively. Clearly, the writing is on the wall for the Left: the people are unhappy with its governance. For the rout in the General elections, it has passed the buck on to policies at the Centre, what is their excuse this time?   

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Two Firsts For Mumbai

Mumbaikars finally have something to rejoice about after 26/11. Their city can boast of two firsts—the country’s first sea bridge and the first city to have a NSG hub. In fact, the two put together have given enough reason to the Congress-NCP combine to get into the election mode for the Assembly polls. Well, that’s what it looked like on Tuesday last, with the Congress President Sonia Gandhi inaugurating the engineering marvel with senior Union and State Ministers in tow. Plus, the Rs 1,600 crore 5.6 km eight-lane bridge which took nine years to build is going to be flagged as ‘Rajiv Gandhi Setu’. Though the sea link is expected to drastically cut down driving time, it wasn’t the case on day one, casting doubts on tall claims made. The NSG, with 250 trained commandos is expected to make the citizens “feel safe” as the elite force would be in a position to respond within minutes in case of another terror attack. Only time will tell.      

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J&K On the Boil

Jammu and Kashmir Chief Minister Omar Abdullah may have bitten more than he can chew by demanding the scrapping of the Armed Forces (Special Powers) Act, which gives security forces sweeping powers to arrest and raid. In a series of meetings with Home Minister Chidambaram and Defence Minister Antony, Abdullah has been asking for amending the Act or repealing it or withdrawing it in a phased manner. Under pressure, the Centre is considering a phased withdrawal of the Army and CRPF in case of decline in violence. However, this past week the signs are not encouraging, the Valley is on the boil again. The CRPF has been withdrawn from Baramulla following violent protests against killing of two persons in police firing. Curfew and prohibitory orders are being defied and the Army has had to stage a flag march. With the police unable to control the situation, Omar should rethink about wanting the local police to be in the forefront of the all anti-militancy operations. He shouldn’t be in a hurry.---INFA

 (Copyright, India News and Feature Alliance)