Round The States

New Delhi, 11 June 2009

Murder, Corruption Rocks

MAHARASHTRA, KERALA IN TAINT STORM

By Insaf

From the high portals of Parliament, some more States are now in the vicious tentacles of corruption. After UP and Bihar, last week alone, Maharashtra and Kerala are in the eye of the taint storm. In Mumbai sitting NPC MP and former State Minister Padmasinh Patil was arrested for his alleged involvement in the “double murder” of Maharashtra Congress leader Pawanraje Nimbalkar and his driver three years ago. Coming just months before the Assembly polls later this year, it has caused big embarrassment to the Party which is now caught between a rock and hard place. Notwithstanding, Patil’s suspension from the Party he continues to be an MP. Even as NCP supremo Sharad Pawar asserted “law will take its own course

In Kerala, the CBI has got the Governor Gavai’s permission to prosecute CPM State Secretary Pinarayi Vijayan in the infamous SNC Lavlin case. Recall, in 1997 when Vijayan was the State Power Minister, the Kerala Government entered into a contract with Canadian company SNC Lavlin to renovate and modernise three hydro-electric projects. Later, a CAG report found that the Rs 375-crore project money was wasted as the company did not complete them. Besides, these projects, Lavlin also had a sub-deal to mobilise Rs 98 crore for a cancer hospital controlled by the Party, of which only Rs 9 crore came. Needless to say this has put the Party in a cleft stick with a lot of egg on its face.

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Bihar For Scrapping Central Schemes

Bihar’s Chief Minister, Nitish Kumar, has now pitched for a lot more than the special status he has been demanding for his state like some other Chief Ministers. He now wants the Central schemes scrapped and the funds allotted for these schemes to be transferred to the States so that they can use them for programmes relevant to their needs. The Central schemes, he argues, were unable to achieve their aim because different states had their different requirements. It was, therefore, futile to have common schemes for the country as a whole considering its sub-continental size.

Nitish Kumar clarifies: “At the time of devolution of funds, the Centre allocates funds for its schemes and only the rest of the money is shared with the States. This practice must change. Every State has different needs and the State Governments should be allowed to run schemes that address their requirements.” Significantly, Nitish Kumar has the backing of the JD (U) and its President, Sharad Yadav. His party also wants the Centre to give greater importance to regional balance in allocating resources. Adequate attention, for instance, needs to be given to Bihar’s level of poverty and backwardness.

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Kashmir On The Boil

Kashmir continues to be on the boil over the rape and murder of two young women in South Kashmir’s Shopian district ten days ago. Despite the Chief Minister Omar Abdullah ordering an impartial enquiry into the murders, Srinagar remains under a blanket of curfew. Normal activity stands crippled with schools and colleges shut. In fact, deserted streets and closed shops greeted the summer tourists thanks to a strike called by the All Parties Hurriyat (Freedom) Conference. With the unrest refusing to die down, the Union Home Minister Chidambaram on his maiden visit to the Valley has asked the Unified Command Council to bring things under control.  Specially, as the Amarnath Yatra is all set to roll out from 15 June.

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Plan To Rid States Of Red Terror

Good news awaits States infested by the deadly Maoists virus. The Union Home Ministry is all set to unleash a major post-monsoon offensive time-bound counter-operation led by the special anti-Naxal Cobra battalions against the Naxalites-ridden Jharkhand, Chhattisgarh and Orissa. The three States, apart from Maharashtra and Bihar, have witnessed a string of deadly “Red terror’ Maoists attacks killing over 381 persons, including 149 security personnel since the beginning of the year. The last straw was when the Naxalites triggered a landmine blast in Jharkhand killing 11 CRPF personnel. Hopefully, the States can breathe a sigh of relief!

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Dynastic Politics Hurrah!

India’s dynastic politics, which shockingly continues to grow by leaps and bounds, has set a new, if little noticed, record. Laws and rules were bent in December 2008 to enable Hamdullah Sayeed, son of the late PM Sayeed, Union Minister, to contest and win the recent election to the Lok Sabha from Lakshdweep and, at 27, become the youngest MP in the 15^th Lok Sabha. Lakshdweep, India’s smallest constituency with a population of 60,595, is governed by the Constitution (Scheduled Tribes) (Union Territories) Order 1951. This in its original form disqualified from contesting anyone who was not born in the cluster of in those tiny islands.

Hamdullah did not fulfil this condition as he was born in Karnataka and brought up in New Delhi, where PM Sayeed spent most of his adult years as one repeatedly elected by the people of Lakshdweep to the Lok Sabha. Conscious that every seat was going to count in the 2009 Lok Sabha poll, the UPA Government pushed an amendment to that special law in December 2008 so that Hamdullah could inherit the legacy of his late father, who died in office. The amendment dispensed with the requirement that the candidate should be born in Lakshdweep. Instead it provided that it would be enough if both the parents of the candidate were born there. Hurrah!

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UP Colleges Ban Jeans For Women

Even as the Congress appears ‘gung-ho’ over the Women Reservation Bill, the States are in ‘regressive mode’. On the heels of the Ram Sene campaign in Karnataka against women frequenting pubs, now it is the turn of UP. Four leading Kanpur women colleges have said a big no to girls wearing jeans, tight tops, sleeveless blouses and high heels on the campus. Cell phones too have been banned. On the facetious ground that it would  “prevent eve-teasing.” Recall, only last month the Shiromani Gurudwara Prabandhak Committee in Punjab disallowed a girl admission in its college as she had ‘tweezed eyebrows’. So much for women empowerment. Pink chaddi campaign, anyone.---INFA

(Copyright, India News and Feature Alliance)

Events & Issues

New Delhi, 10 June 2009

Aam Aadmi’s Wish List

CHANGE POLITICAL MINDSET

By Dr. MM Kapur

The Finance Minister Pranab Mukherjee is busy consulting all sectors of the     economy to obtain their views and suggestions before he presents the Budget on 3 July. Needless to say, the aam aadmi too should be an integral part of this inclusive consultation to complete the exercise.

I have been emboldened to write this wish list on behalf of an aam aadmi in response to the repeated statements of the new UPA Government that their objectives were to focus all action and programmes on the aam aadmi.

The aam aadmi who has lived (if you can call it that) in this country for as long as recorded history, is either landless, belongs to the SC-ST or is unemployed. If he is employed it is in the unorganized sector, with each sector holding about 30 crore poor. Till date, neither has he been reached nor has his “garibi” been removed.

Further, an aam aadmi who is working as a labourer is listed as living Below the Poverty Line (BPL). In the Central Government’s definition of BPL the aam aadmi is earning Rs.300pm or Rs.10 a day. Whereas the global definition of a BPL is US$1.25 a day or Rs.55 a day.

According to estimates there are over 456 million BPL people.  Worse, their below the poverty line earning will neither buy the minimum recommended calories (at today’s prices) of food. Resulting in the poor being priced out of their human right of access to food.

Coupled with the recent rise in food prices, I felt I had misread the slogan of garibi hatao and the new slogan was now “garib ko hatao” who continue to be without access to food, in this birth-land of Gautam Buddha and Mahatma Gandhi.

This brings me to my first wish for survival. Food should be made available at affordable prices to the aam aadmi. But this requires an immediate upgrade of the public distribution system (PDS) to make it efficient, free of pilferage, and a well-stocked delivery system.

Sixty two years is a long time to construct and perfect a system that services nearly 50 per cent of the population. The Government must also keep inflation in check along with keeping prices of food items low. Remember, the poor do not live by calories alone. He needs some dal and vegetable, milk too becomes desirable if he has children. Clearly, all these items need to be a part of the PDS service.

The Supreme Court has held and the poor feel that there is a greater dignity to life if the food we eat is earned through manual labour. This necessitates the creation of jobs which should be in sectors where major inputs are required for the growth of the Indian economy.

Two important areas are infrastructure (i.e. roads, waterways and communication) and the energy sector. These areas would help create jobs and earnings in rural and urban locations. Along with this health care too needs most urgent imperatives since clean air, water and food are expensive, and care of the negatively impacted people is an immediate need.

True, the infrastructure is already in place. There are 22,000 Primary Health Centres and 4400 district hospitals. But they need staffing, upgradation of supplies and link-ups with district hospital and medical school hospitals for consultation and advanced care when required. This would make public sector care accessible, cost effective and equitable. Also, if the public healthcare system has computer records it would be able to provide vital data on disease prevalence and aid planners.

Add to this, the fact that reservation in education has become a matter of debate reveals our shortage in this important field. An expansion of our vocational and higher education fields would remove the need for reservation and reintroduce competitiveness in education. Not only that. It would give a fill-up to the economy and insure the future of all coming generation.

Besides, security of life and the property of the citizen have to be delivered through our internal and external security system. The security agencies need a change in mindset and an overhaul from its current disaster management module of acting post an incident, to a new disaster prevention objective based on authentic intelligence and quick counter terror units.

Water is an element of life. Our lack of water conservation and water harvesting is making life both urban and rural difficult. We need to urgently implement schemes for ground water recharging (lakes and ponds) and linking of rivers to tide over lean periods. The final objective being the provision of safe drinking water, for all.

There should be rigid adherence to the reduction in carbon footprint and promotion of sustainable development goals which would cut environmental pollution and provide clean air. The growth goals should have environment goals embedded in the objectives of all projects.

Additionally, a major thrust is needed vis-à-vis rural infrastructure building to improve surface connectivity of the local community. Other than a community centre, communication services, including power, broadband telecommunication, for use of the community for human development is required wherein these facilities could be used for market information and access. This would go a long way in connecting the aam aadmi to the realities of the rest of India.

Importantly, the ‘removal of poverty’ has immense political value. It provides us with slogans and a gullible voting ‘daan’. The socially sensitive are now aware of how painful and debilitating the state of poverty can be that it allows so many to exit in silence. Poverty need never be politicized. It must be addressed, irrespective of caste or religion. It must be fed, nurtured and monitored to confirm the success of our endervours.

We need to remove all names and link our poverty alleviation programmes. India has always been known for its anonymous philanthropy. Thus we should not create new indebtedness in provisions of what is the birthright of every human being.

In sum, the need of the hour is a change in mindset of our leaders and political parties without which none of the above wish list would be achieved. Our leaders need to think in terms of bipartisan national goals instead of short-term electoral compulsions. Given the platform of bipartisan national imperatives would make our goal of ‘garibi hatao’ easily reachable within the lifetime of the aam aadmi. ---- INFA

 (Copyright, India News and Feature Alliance)

Economic Highlights

New Delhi, 5 June 2009

Contradictory Signals

ECONOMY NOT ROBUST

By Shivaji Sarkar

The core sector “growth” has created euphemism. But it needs to be observed with caution. It is not an indicator of a turn-around although it is being projected like that. It has to be seen against certain hard facts. The corporate tax realisation has come down. Jobs are not growing and the Government’s borrowings are likely to spiral.

The signals are certainly not positive. True, to boost the morale of the people it is necessary to scout for positive trends. However, the global economy has not shown any betterment. Also true that the Indian economy need not follow global financial markets but it is unable to unshackle itself from it.

The President’s address to the joint session of Parliament has set forth promising goals but one aspect has been overlooked. It is not necessary to read too much into the core sector “growth”. It is a year-on-year account. Power, crude oil, refinery products, coal, cement and finished steel grew by 4.3% as per the April statements.

Recall, it had fallen to 1.1% in December last. But make no mistake. It is not 3% additional growth. It includes the figures of the normal growth period during the initial moths of 2008. After July it had dipped to 2.7 %. The pick up after December is minimal. The projection is less real and more of statistics.

The euphoria for these six items has a reason. These contribute 26.7% to the Index of Industrial Index. Similarly, it is being touted that the fast moving consumer goods (FMCG) sector is moving faster. In April-May, it is said, key product segments such as soaps, detergents, toothpastes, biscuits, snack foods and soft drinks have seen a volume growth of 20%. This has been ascribed to lower prices. Basically biscuits, snack foods and soft drinks have added to this growth.

In a way it has become a consumers’ market. Most companies have lowered or maintained prices instead of raising them as they do every season. Thus busting the myth of the companies that they are forced to increase prices for a “host of reasons”.

It is very simple. Lower prices generate demand. If the players stop fleecing consumers there is always a chance of better growth. But this does not establish that there is real growth. At best it can be said to have brought the normal consumers back into the fold. It should be a good lesson for the FMCG players. But would they adhere to it and overcome their greed? This also calls for introduction of a price regulator for these products and a strong consumer movement.

This apart, one aspect has escaped notice. The FMCG players have tricked the consumers in a different way. They are giving less in terms of weight for every packet sold. Be it a chocolate, biscuit, soap, drinks or detergent. Whereby the profit of the FMCG companies has increased even during the bad times. Otherwise too the FMCG demand is always maintained at a level so not much should be read in the seasonal growth. It is likely to plateau in a month or two as the weather changes.

Apparently some modest growth in cement and steel is being seen on public spending. But the onset of the monsoon is likely to dampen this. Needless to say, the Government has to take note of the reality as well. Scandalously, the Delhi Development Authority (DDA) last month rewarded a company that had failed to fulfil its commitment of constructing a housing complex for the Commonwealth games village. Instead of realizing penalty from it, the DDA purchased the complex for Rs 700 crores.  It is not only a clear outgo of public funds. But it needs to be probed as to who has benefited from the deal.

More. India’s largest real estate company, DLF is easing out of its SEZ projects. Similarly, many other companies are also reneging on their commitments. The plight of General Motors laden with bankruptcy is well known. The Tata’s are also not in ship-shape. Many others companies too are riddled by similar problems. All resulting in a reduction of jobs.

In fact, the spectre of job loss and salary cuts is haunting the nation. In such a scenario, the so-called best show by the core sector is hardly a relief. According to industrialist Rahul Bajaj 2009 would continue to be a difficult year for the Indian industry.

There is yet another concern.  The Central Government has promised an all-round activity for different segments of the society. For that it requires funds. But the trend being seen in the corporate tax payment invalidates that hope. The cement, construction and engineering industries have provided for lower taxes flowing pre-tax profit. The tax provisions of 13 cement companies have declined by as much as 25.4% in 2008-09 adding to about 19 % fall in pre-tax profit. The tax provisions of 10 construction companies have declined by 11 to 14%.

Further, the overall corporate tax collections, which account for about two-fifths of the Government’s total revenue receipts, reportedly have fallen short of target. The aggregate pre-tax profit has increased by 6.7% in 2008-09 against 30 % in the previous year. Only the banking sector is paying more taxes.

According to CMIE data, there is hardly a company which is paying higher taxes. Almost all companies are paying taxes at a much lower level. Some companies are paying 68% less than what they had paid in the last year. Most others are paying 30 to 40% less.

All in all, the Finance Minister Pranab Mukherjee is likely to have an extremely difficult time preparing for the budget as per the guidelines set out in the President’s address. Each of his action has to be supported by finance. If he cannot get it from revenue generation the Finance Minister would have to resort to borrowings. Whether that would give a necessary push to the economy remains in the realm of speculation. --- INFA

(Copyright, India News and Feature Alliance)

Open Forum

New Delhi, 8 June 2009

Left In Distress

URGENT OVERHAUL NEEDED

                                            By Dhurjati Mukherjee

The Left Front is in dire distress and many believe that they are in a state of disarray. The snapping of ties with the UPA Government had been a great strategic mistake, as pointed out by former Lok Sabha Speaker Somnath Chatterjee.

In fact, the Congress is extremely happy of not having to take the Left’s support as it would have jeopardized its relations with Mamta’s  Trinamool and opened the possibility of it  interfering in most decisions. The Third Front too is virtually a non-starter given that BSP’s Mayawati is ready to extend outside support to the UPA.

According to a former Chief Secretary of West Bengal, the CPM is likely to be cornered further in the coming years. Primarily due to its General Secretary Prakash Karat’s lack of political maturity and insight along with his arrogance. This could land the Party in great difficulty. Predictably, Karat is being cornered and criticized by his Party-men and it remains to be seen whether his position will remain unchanged in the Party’s hierarchy.      

Adding to the Left woes, the pre-poll issues in West Bengal and Kerala created problems for the Party. Leaving the people disillusioned and dissatisfied with its performance and bickerings within the Party. As the results show, both the urban and rural masses rejected its policies. Worse, the Congress-Trinamool pact consolidated the opposition leading to their resounding victory. Bagging an unexpected 25 of the 42 MP seats in West Bengal.

The 7 causes that went against the Left are: One, acquisition of farmland for industrial purposes when barren land and land of closed companies was lying unutilized. Two, the Adivasi agitation against wanton neglect and no development in tribal-dominated areas. Three, a large section of the West Bengal Muslims were upset with Left policies. Four, the Rizbanur episode.

Five, the distressing condition of education and heath facilities in villages and the pro-capitalist approach to development ignoring the interests of the people of the State. Six, under-utilization of Central funds, inept handling of the rural employment guarantee scheme and rural development programmes not properly carried out. Lastly, projects were held-up thanks to Party interference, corruption and The controversy for the need of farmland to develop industry as advocated by the CPM was rejected by the people. From south of Kolkata northwards across hundreds of kilometers on both sides of the river Hooghly, which was India’s one of the first industrial complexes, is now a rust belt.

Most factories are closed, machinery peddled-off and workers laid-off. In fact, over 1.6 lakh crores land is locked in litigation. In the last five years, the Left Front Government has closed down quite a few undertakings leaving over 6000 workers unemployed.

Pertinently, a section of the CPM, led by the State Land Reforms Minister Abdus Rezzak Mollah, had from the very beginning opposed the Party’s policy of the hasty takeover of farmland for industrial use. After the election, the CPM transferred back the Land-Use Board to Mollah from the Industry Department so that future acquisitions would be done keeping in view the interests of the land losers.

If one were to compare West Bengal with Maharashtra they are completely different. India’s commercial Capital Mumbai managed to redevelop its mill areas into bustling centres of trade, manufacturing and commerce. Questions have rightly been raised as to why the West Bengal Government has not been able to follow Mumbai’s model and instead opted for farmland to set-up industries. 

Adding to the Left Front’s woes, it floated the Third Front with Mayawati’s BSP and Jayalalithaa’s AIADMK. Two controversial leaders facing corruption charges. Thus the Front was viewed as an opportunistic alliance and rejected by the people. Questionably, how could the CPM which had demanded a CBI enquiry against Jaylalithaa in Parliament, align with her?

Not only that. Many Leftists and intellectuals have questioned the marked change in the Party’s ideological position and its electoral strategy. People like wrier Mahasweta Debi, actor Aparna Sen etc have been openly criticizing the CPM for its anti-people policies and complete developmental failure. Wherein the Party’s popularity has been on a wane across the country.

Besides, apart from the Congress, the Maoists are enraged with the CPM for its change of orientation in the economic policies. They allege that both in West Bengal and Kerala, the Left Front has played into the hands of industrialists and multi-nationals. Ignoring in the process the demands and needs of the rural poor, specially the farming community, small artisans, weavers etc which has led to its ignominious defeat.    

According to a report, the CPM’s assets which were Rs 52 crores in 2002 more than doubled to Rs 107 crores in 2006. Many wonder how a Party with only 43 MPs in Lok Sabha accumulated so much money in just 4 years. More. The CPM has the third largest assets after the Congress (Rs 229 crores) and the BJP (Rs 112 crores). Not a few believe that these, acquired in an ‘unclean’ manner, are more than officially shown. They could presently range between Rs 700-Rs 900 crores. 

There are also reports of large-scale corruption in the Party, especially amongst the middle and lower level cadres who work more for themselves than for carrying out grass-root development. Veteran Leftists pointed out that the Left Front, specially the CPM is no different from any other Party. There is no commitment and sincerity among Party cadres, no discipline in the P riddled by large-scale corruption and greed at all levels.

Recall, the Left came to power in Kerala and West Bengal promising to work for the uplift of the farmers and workers. After three decades, both these sections are angry and restive. Most Left veterans are dead or inactive and the current leaders have no experience, initiative or imagination to lead the seething population. Thus, when faced with opposition or distress, the Front reacted with overwhelming force, hoping to intimidate dissent with violence. Nandigram a case in point. The primarily reason for the CPM’s rejection by the rural masses. 

A political commentator aptly observed, Communists never believe in democratic norms. Yet they always talk of “people’s democracy” but do the opposite. Curb dissent and everything else with an iron hand instead of through dialogue and discussion.      

Alas as Verdict 2009 shows this strategy has failed. It is time now for the Left Front, specially the CPM, to introspect, bury their differences and emphasize on grass root development of the masses in West Bengal and Kerala, if they want to recover their lost position. Moreover, the structure and character of its leadership has to change so as to accommodate with better grace the demands that pluralist democracy makes on every political Party. True this appears remote in the short-term. But only time will tell how quickly they would be able to achieve the objectives. ---- INFA

 (Copyright, India News and Feature Alliance)