Editorial

Plain speaking in national interest

Asian Age — Sat, 21 Nov 2009 02:14:18 GMT

Nov 21 : Very occasionally senior officials come along who call a spade a spade, rather than conform to standards of political correctness that are not infrequently used to maintain the status quo at the expense of pointing out systemic defects and looking ahead. The vice-chief of air staff, Air Marshal P.K. Barbora, apparently a respected fighter pilot, appears to belong to this small company. Addressing a forum on Thursday, he went public with what the defence services have long felt. The senior officer bemoaned the tendency among our political parties to use international defence procurement arrangements to settle political scores with one another. It has been a given for the past 20 years or so that a government will be reviled with charges of corruption in defence purchases by its opponents in Parliament and outside. The compliments are returned almost ritualistically when the roles are reversed. This is not to say that malfeasance should be tolerated or corruption brushed under the carpet. It must be clearly understood that the taxpayers’ money is not for lining the pockets of corrupt individuals or parties. Strict surveillance mechanisms must always remain in place. But it has been found that nearly all major military purchases since governments began to scout for the best equipment and price in the international commercial domain were bogged down indefinitely as corruption charges swirled. Hardly anything worthwhile was ever proved even when those who levelled allegations came to rule. It does appear in retrospect that hurling not just allegations but also abuse became a pastime for Opposition parties because of the perception that so-called scandals can be milked better for political ends than the demands of unglamorous but authentic politics which necessarily involves educating public opinion through responsible political thought and action.

Consequently, the needs of the defence sector have suffered. As India’s footprint in global affairs has grown, so has the need for boosting its military power as the last guarantor of its vital interests in dealing with hostile foreign quarters. The neighbourhood we live in is among the most treacherous in the world. All political parties would need to bear this in mind. Senior leaders across the spectrum have a special responsibility in this regard. If serious charges are to be brought, this must be done with the sense of utmost responsibility. We often find instead that shrill and emotive rhetoric is used from the pulpit and opponents begin to talk of presumed Swiss bank accounts at the drop of a hat. When this happens, even crucial military purchases go on the backburner as no one wants to be singed.

The Indian Air Force’s vice chief has sounded a cautionary note in the context of the supreme national interest. It will be a real pity if the political class hurls the protocol book at him and takes him to task for highlighting shortcomings that politicians should have themselves seen fit to overcome. The officer has also spoken of opening up the area of domestic defence supplies to the private sector more fully and to permit foreign direct investment in the defence sector. These ideas need to be aired even if they are not found entirely feasible. On balance, Air Marshal Barbora has made a useful contribution to an important debate that should have been started much earlier.

Sugarcane row: Resolve quickly

Asian Age — Fri, 20 Nov 2009 05:19:39 GMT

Nov.20 : It was prudent of the government to have stepped back on Thursday and offer assurances of modifying the ordinance on the price of sugarcane that led Uttar Pradesh’s farmers to mount a massive dharna before Parliament House in New Delhi on the opening day of the Winter Session. The issue has united the Opposition and even induced sections of the ruling United Progressive Alliance — notably the DMK and the Trinamul Congress — to extend solidarity to the farmers. The country is reeling under a price shock as kitchen essentials have gone out of the reach of most people. This can be an ingredient for an explosive political situation, particularly while Parliament is in session. To alienate the farming community as well at such a time would make the government look uncaring.

The crux of the matter is the October ordinance which fixed the fair and remunerative price (FRP) of sugarcane at Rs 130 per quintal. The FRP replaces the statutory minimum price (SMP), which was Rs 110 last year. Over and above the SMP, the Uttar Pradesh government was wont to declare a state advised price (SAP), which was higher than the SMP. Maharashtra, Gujarat and Karnataka also paid their farmers a price above the SMP. The SMP rose to Rs 165 this year. But farmers in Uttar Pradesh — the country’s largest cane producer — are demanding Rs 280 per quintal. If this demand is met, the retail price of sugar will climb above Rs 40 per kg. Union agriculture minister Sharad Pawar has been accused of favouring the big sugar mill owners through the controversial ordinance, under which state governments cannot declare their above-SMP deal for farmers. However, the ordinance does not stop the mills from offering farmers a higher price if they are able to absorb the difference between the FRP and whatever they agree to pay. However, the UP farmers’ demand for Rs 280 per quintal is unthinkable for the state’s sugar mills.

Since crushing is yet to begin in UP, the Union government might just have some leeway in getting the mills to offer a deal that could be close to the SMP of Rs 165 that the UP government was to offer this year. Moderating the effect of the ordinance, the Centre could also raise the FRP. If the demand of the UP farmers were to be met in its entirety, the acreage under cane will increase. This will create a glut which will make prices fall. At that stage, there isn’t any government support. The other outcome of a substantially higher price to cane growers will be a further snowballing in the price of retail sugar, although the price of cane isn’t always the only reason for the upward movement of the retail price. The government needs to be realistic as well as deft in its negotiations with the Opposition parties so that the matter is resolved as soon as possible. Otherwise we may expect to arrive at a season of political mobilisations early in the career of UPA-II.

Just stand firm with US, China

Asian Age — Thu, 19 Nov 2009 02:29:35 GMT

Nov 19 : US President Barack Obama’s solicitousness of his Chinese hosts should cause no surprise. Equally, no Indian outrage is called for on account of condescending references in the US-China joint statement to the situation in South Asia. However, insofar as supercilious mention is made in that document of India-Pakistan relations in the context of Kashmir, Prime Minister Manmohan Singh will be expected to set the record straight when he meets Mr Obama in Washington in a few days’ time. But there is no call to froth at the mouth. We need to understand that the Americans are being extra nice to the Chinese because they need China at this juncture. This by no means suggests that remarks of a general nature made in the joint statement are likely to be converted into an operational script by either side. Much that has gone into the statement appears intended to make the Chinese chuffed — no more than that. It’s all about dressy drollness, in a sense.

Mr Obama’s return visit to Beijing ought to be viewed in the light of the changing balance of forces in the world. America can no longer be said to be a hyperpower. Being engaged in two wars simultaneously in Iraq and Afghanistan has taken a toll of its treasure and morale, and the crippling year-long recession from which it is just emerging has debilitated it. So the US is now only a weakened superpower, although still the only one to answer to that description. China, on the other hand, has emerged more or less unscathed from the recession. It has the money to contribute to help the revival of other economies and the credentials to be at the high table that may frame the post-downturn new financial order, if such a move seriously gets underway. But perhaps more than any of this, the Chinese have bailed out the debt-ridden American economy by purchasing one trillion dollars worth of US government bonds.

More, Mr Obama calculates that if he is to emerge as a genuinely new-look President — marking out the contrast with his predecessor, and achieve this when he is roughly mid-way through his term — he might need to harness Chinese diplomatic clout in turning the clock back with Iran and North Korea. Both are key objectives for Washington. In the event, Beijing wants payback by way of being treated as the new Moscow as far as appearances go. The US is happy to flatter China’s vanity. This costs little.

In time, Washington will learn that China can’t deliver politically. It doubtless carries clout with Pakistan and North Korea, states that are not deemed normal. But if Beijing helps Washington meet its requirements in these theatres, it may have little political leverage left with the America in this part of the world. As for Iran and Afghanistan, the Chinese are not quite in a position to swing the mood in these countries. Beijing’s presumed influence over them is overstated. So, what about Kashmir, then? The Chinese and the Americans need to be informed they are out of jurisdiction, and that they parrot the position of Pakistan, which is not acceptable. Washington will need reminding that all actions carry a price tag. In 1998, President Bill Clinton, then leading a far stronger America, had slammed India on the nuclear and Kashmir questions while visiting China. He was angry with the Indian nuclear tests. But India just looked America in the eye. It was sure of its ground. Dr Manmohan Singh must convey the same élan.

Bravo Sachin!

Asian Age — Wed, 18 Nov 2009 03:06:06 GMT

Nov 18 : The Marathi manoos of the Shiv Sena’s conception, and those of its derivatives, took a hard knock when the octogenarian Sena founder Balasaheb Thackeray seriously miscalculated and messed with Indian superstar Sachin Tendulkar, who happens to take great pride in his Maharashtrian roots. Violating the canon of the Maharashtrian-chauvinist party, the cricketing hero declared without hesitation in reply to a reporter’s question that he was an Indian first, and that all Indians had an equal right to Mumbai. This has made the Sena chief see red because the view challenges the first principle on which his outfit has been built over the years. To allow Mr Tendulkar’s assertion to go uncontested may have appeared to Mr Thackeray to participate in the crime of his own denigration. After all, the Marathi-Mumbai sutra is a bread and butter matter for Mr Thackeray, whose storm-troopers — and those of Raj Thackeray’s Maharashtra Navnirman Sena — have intimidated non-Maharashtrians in Mumbai, including the likes of superstar Amitabh Bachchan, with no one daring to offer resistance. Now that a Marathi manoos, who sees himself first as an India manoos, has challenged the bully squad, the cookie has crumbled. It is indeed a pity that no Maharashtrian of stature had spoken up earlier in the forthright terms that Mr Tendulkar has employed. This imparts the famous cricketer’s contribution immeasurable value. His words will impact not just all of India but all of Maharashtra, and that is what counts in building the edifice of a multi-ethnic, multilingual society and state. Indeed, most Maharashtrians are likely to be relieved that a much-loved and admired son of the soil has stepped forward to fill the breach.

Where they were silent before, senior politicians of every description are coming out to praise Mr Tendulkar’s no-nonsense India-first stand. The Shiv Sena’s alliance partner, the Bharatiya Janata Party, has also announced that the batting genius is spot on. Mumbai kowtowed to Mr Thackeray because it feared him. Anxiety about Sena reprisals is likely to be less pervasive now, and this may be expected to corrode the politics and mobilisation strategy of the Sena and others of its ilk. The Shiv Sena was licked in the recent state elections. The Marathi petty bourgeois constituency, including its backward caste segment, appears to be shrinking even if the MNS votes and seats are brought into the equation. Perhaps its core will never go away, and a moth-eaten Sena will remain a part of Mumbai’s political landscape. But, in time, that can only resemble a political mafia. Goaded by the Congress with a view to curbing communist influence, the Shiv Sena had come into existence in a shortage economy and just in time to fill the gap being left on account of the decline of Communist influence in the trade unions of Mumbai. The circumstances have undergone a sea change since then. Narrow chauvinism will not deliver the political goods effectively when the economic system is in an expansion phase. Policies aimed at raising employment opportunities is apt to further whittle the politics of navel-gazing.

Yesterday’s men out of tune in UP

Asian Age — Tue, 17 Nov 2009 04:12:21 GMT

Nov.17 : The unprepossessing sight of Mulayam Singh Yadav and Kalyan Singh — two former chief ministers of Uttar Pradesh, the country’s largest state — shooting poisoned arrows at one other is amusing only because the duo, who once gave themselves such airs, are making a spectacle of themselves. Their choice of vocabulary would shame a political neophyte. The fight of the former heavyweights may be silly fun, but it masks a serious reality. Nearly all their life in politics, Messrs Yadav and Singh spoke grandiloquently of ideology, although from opposite ends of the spectrum, and sought to seize the elevated ground. However, what they were doing all along was to construct a base that rested heavily on narrow caste endogamy, rather than a language of development. That base has deserted them because UP — like some other states as well — is getting left behind even as India as a whole is trying to walk forward in quick steps. These gentlemen represent the shackles that bound the state to narrow confines. But the people are looking for something else today. The trouble is that Mr Yadav and Mr Singh still don’t seem to get it.

The tragedy is that political stalwarts of a territory that harbours very significant numbers of India’s poor have shown an extraordinary inability to rise above the pettiness of caste and self. Not long ago they came together in a craven act of political opportunism that drew gasps all round, but their project of backward caste consolidation collapsed in a heap. It just could not stand up to the counter-pull exerted by UP chief minister Mayawati’s ostensible dalit agenda — which on paper translates to fighting for the poor — and the barnstorming act of Rahul Gandhi who dangles the development paradigm in caste-neutral terms. None of this means that caste has ceased to exist in specified areas of social intercourse, but it does mean that voters are losing faith in those who sell the caste utopia. Mr Yadav and Mr Singh are today likely to concede that two and two did not make four — that Yadav and Lodh is not equal to the Firozabad Lok Sabha seat. Left behind by time, they naturally cannot fully let go of opportunism. Mr Singh is trying every low trick to return to the BJP fold for the second time. Down and out, the saffronites may well choose to embrace the twice-prodigal, but it is doubtful this can be a reason that will shore up their chances in UP. Mr Yadav at the moment may have only nostalgia to fall back on. His party has non-responsive relations with Ms Mayawati’s Bahujan Samaj Party and only a slippery link to the Congress. This may lead to an erosion of the caste vote and even departure of party high-fliers who not long ago genuflected before "neta ji". In a merrily diverse country, the fate of former UP satraps cannot denote the end of what goes under the rubric of regional politics. But their condition does indicate that an earlier mobilisation model now has severe limitations in the poorer parts of India, some of which are now experimenting even with extremist violence.

A delicate time for West Bengal

Asian Age — Mon, 16 Nov 2009 08:18:21 GMT

Nov.16 : Ruling parties usually prefer to advance election dates when they think the pitch is to their liking. The idea is to strike when the iron is hot, rather than wait to complete the full term and lose the promise of a start a favourable mid-term political moment may confer. So it is understandable that the CPI (M), which leads the Left Front government in West Bengal, is not keen to go to the people at this stage in spite of mounting pressures from the Opposition as well as from sections within. After all, does the party have anything new to say to win back the confidence of the people? It has been in power 32 long years, and yet it has lost every single election — to panchayats, Parliament, and more recently a string of Assembly byelections — after the state Assembly polls in 2006, which it had won handsomely. This is what’s called being in a block-hole, alas one of its own making. The state secretariat of the CPI(M) appears to have taken the view that it loses nothing by staying on till 2011 when Assembly elections are constitutionally due, and may actually surprise itself and others by retrieving some ground in a year and a half (possibly on account of political errors that its opponents might commit).

No party can be faulted for embracing such pragmatism, but the Communists claim they are not just another party. Seeing themselves as self-conscious agents of change of a particular type, they understand well the meaning of deep tactical setbacks and the wavering of strategy. If the CPI(M) is objective about the process of self-criticism which occupies a place of privilege in Leninist literature, it will recognise that it had built its sturdy base in West Bengal on the backs of agricultural workers and the poor peasantry, and is about to lose it on the basis of that very constituency withholding consent — descending from the crest to the valley floor in the same territorial space. Nandigram made that abundantly clear. If the Communists had been a working class party (which they acknowledge in their organisational reports they are not) which they traditionally aspired to be, the CPI(M) might still have a strong ghetto to fall back on. But it has always been the party of the Bengali middle class, sullied by "establishment" lumpens at various point in its career. That middle class has come to believe that the party’s ideas are not in tune with its dreams. This makes the CPI(M) today doubly bereft of a base. Throw in sectarianism and gross opportunism for good measure, and you have the witch’s brew. Indeed, history has reached a turning point, and may not appear shy to take the turn.

On losing the political capital accumulated over decades, it is hard to see how the Left Front government can cater to the needs of the people of West Bengal. Leave alone fulfilling its socio-economic agenda, Writers’ Buildings finds it hard at this juncture even to marshal its resources to meet the security challenge being posed by Maoist insurgents. If the state is not to sink into stasis, the CPI(M) may be well advised to show the way by permitting a reconfiguration of forces and restoration of the legitimacy and élan of the state government by advancing election dates. This is indeed a delicate time for West Bengal. To pull the state back from a precipitous slide, it is also incumbent on the Trinamul Congress, the CPI(M)’s principal challenger, to end its dalliance with the Maoists who represent explosive chaos. The leading parties of the state need to put their best foot forward.

Living legend soldiers on

Asian Age — Sun, 15 Nov 2009 05:47:07 GMT

Nov.15 : In the active life of an international athlete, 20 years is a phenomenal number in these hurried and high-pressure times. In almost any sport, one would be hard pressed to recall names of those who lasted as long - or even longer - than Sachin Tendulkar, who achieves that mark on the day. It must, however, be said that cricketers - especially those who played 50 years and more ago - tended to go on and on and Tendulkar currently stands at 13th in the overall line-up of long-serving cricketers. In these two decades, he has gone beyond the status of being an icon. He is, to literally millions of his countrymen, Indian cricket personified. That he holds almost every record there is in the book of batting is almost incidental to what he means to not just those from his own nation, but the larger community of cricket lovers and fans. He is, in short, a true legend. This is for reasons far beyond the confines of a cricket ground. As former team-mates and so many other great names to have played the game have noted, what sets him apart from the modern-day pack is how much enthusiasm he continues to show for the game, his absolute ease at handling the pressure of a billion Indians expecting their team to win every time he bats, and his statesmanlike demeanour at a time when the scramble for the vast sums of money increasingly appearing around cricket is beginning to get ugly. In all this, Tendulkar has preserved an almost monastic calm, an ability to convert his love for the game into a buffer zone for the immense pressures that follow him around everywhere on an almost minute-by-minute basis. There is criticism, party justified, that he has not won enough matches for India, but as his recent hundred in Hyderabad proved against Australia, when Tendulkar goes, the remaining 10 seem to give up hope. This has happened time and again at venues around the world, and barring a period when the likes of Rahul Dravid, Sourav Ganguly, Venkatasai Laxman and Virender Sehwag took some of that load off his shoulders and India showed they were more than just tigers at home, it has almost always been a one-man battle against the opposition. In the departure or imminent retirement of these titans, those bad old days are threatening to return. In a sense, there can be no better tribute to the man than what he means to his teammates, for whom he was, is and will continue to be a rallying point. Ganguly, India's most successful captain, has made the point that it was Tendulkar around whom the brave, new and ambitious India was forged. The point has also been made about how Tendulkar's arrival and subsequent ascension coincided with the opening of the economy and the emergence of a stronger and more prosperous nation, one with self-belief that has grown over precisely the two decades he has saddled cricket like a colossus. That is one of the answers to the phenomenon that is Sachin Tendulkar. Yet, as the man himself will tell you quite earnestly, it is his love of the game and pride in playing for the country that has made him what he is, and has kept him going. Nothing more, nothing less.

A new front in war on terror

Asian Age — Sat, 14 Nov 2009 06:52:41 GMT

Nov.14 : To facilitate deception, duplicity and dodge, changing names and aliases is an occupational necessity in the world of espionage and terrorism, as is exemplified by the case of the former Pakistani national Dawood who first acquired American nationality and then proceeded to officially rename himself David Coleman Headley, a thoroughly Western appellation. Mr Headley of Chicago and an old buddy of his from the Pakistan days, Tahawwur Hussain Rana, now a Canadian national, came under the radar of the US Federal Bureau of Investigation for being in a serious conversation with hotshots of the Lashkar-e-Tayyaba in Pakistan on the question of whether to first attack Denmark — where a newspaper had published a cartoon of Prophet Mohammed — or targets in India. The details of the case were forceful enough for the Americans to get the Pakistanis to arrest two people as part of the conspiracy that was in the works. It speaks of Islamabad’s lack of sincerity in tackling terrorism directed at India that it did not inform New Delhi of this development. We cannot know how many jihadist sleeper cells of the variety of Headley and Rana Inc exist in North America or continental Europe. But it would be naïve to believe that the physical threat to the US mainland, or Europe, comes only from the Al Qaeda nestling in the tribal regions of Pakistan bordering Afghanistan. The Lashkar-e-Tayyaba, in a very real sense, may be taken to be a tributary of Qaeda, and not merely a Punjabi Islamist outfit that just aims to destroy India.

This country is naturally concerned and has made its intention known to extradite Mr Headley, who, it transpires, has visited India nearly a dozen times, including shortly before Lashkar’s November 26, 2008 attack on Mumbai and at least once afterwards, scouting through half a dozen states and leading cities. To this end, evidence is being assembled. India is also waiting for proceedings against the Pakistani-origin US terrorist to take a certain shape in American courts. Indian investigators have grounds to suspect that Mr Headley may be deeply involved in the 26/11 attack. The FBI has so far been helpful in letting India know of what’s turned up so far. But will they agree to extradite, or come under pressure from Pakistan which is likely to be mounted? Earlier this week, US officials hid behind procedure and denied Indian investigators access to Mr Headley and Mr Rana for interrogation purposes. It may be recalled that back in late 2001 and 2002, America had not let the Indians question the hundreds of Punjabi Pakistani fighters who were doing duty on the Taliban side in the Battle of Kunduz in northern Afghanistan. Indians were also denied access to sensitive documents recovered from a house in Kabul when the city was taken by the Northern Alliance and the Taliban routed.

India has taken the sensible decision to no longer grant visas to certain American nationals after the simple customary procedures. Americans of Pakistani origin will henceforth need pre-screening. Perhaps to balance this, US citizens of Afghan and Iranian origin have also been included in the same category. This was perhaps going too far. In any case, strict constitutionalists are apt to be unhappy about applying a separate yardstick for Pakistan-origin Americans. We may now expect an energetic tit-for-tat by Pakistan, although for nearly a decade Islamabad has kept a wary eye on India-origin Americans, going by anecdotal evidence. But we live in a complex world and ground realities cannot be overlooked. Mr Headley and Mr Rana were students at the cadet training school at Hasan Abdal, not far from Peshawar, which sends up its students for officer training. Their case only reinforces the deep anxieties about far-going links between jihadism and the Pakistan military.

The manner of Maha politics

Asian Age — Fri, 13 Nov 2009 03:02:54 GMT

Nov 13 : The new government in Maharashtra led by Ashok Chavan has an enormous task before it as it takes over at a time when the political culture in the state has reached its nadir. There is no ideology or principle involved as political parties indulge in violence. Democratic institutions have been badly hit. The only ideologies are money, power and self-interest. Even if there are economic issues underlying the so-called parochial positions of some of the players, the way these are articulated do more harm to their cause than good. It is not that Maharashtra has not seen powerful political parties and leaders since the formation of the state 50 years ago, but chief ministers and ministers in the early years of the formation of the state were political stalwarts like Y.B. Chavan, who later became the defence minister; V.P. Naik, the longest serving chief minister; Vasantdada Patil; S.B. Chavan, the present chief minister’s father, and even A.R. Antulay and Sharad Pawar. They required all their administrative skill and understanding of issues to handle leaders like the communist patriarch S.A. Dange, fiery trade unionists like George Fernandes and Datta Samant, and the young Bal Thackeray, and the first terrorist attack on Mumbai. There was also a powerful underworld. The government did not always succeed and the state and Mumbai were rocked by many violent bandhs and communal riots. But still the strength of the government of the day was such that the people had faith and confidence in it. Today things have changed for the worse. Governance is non-existent. Respect for government is scant and this is further accentuated by the infighting within the Congress and the Nationalist Congress Party, which constitute the government. It failed the very first test thrown up by Raj Thackeray’s men and Samajwadi Party leader Abu Azmi. For more than a week everyone was aware of the tension simmering between the two groups. Yet neither the chief minister nor the home minister did anything to try and prevent this confrontation in the Maharashtra Assembly. The result was a brawl and a mockery of the august House on the opening day of the new session. This failure was not entirely unexpected, what with the home minister being the same person booted out for his ineffectiveness during the 26/11 terror attack.

The present government is being torn apart even before it has a chance to settle in. The Congress has left five Cabinet seats vacant in order to accommodate the dissidents after getting a cue from the high command. The senior Congress ministers will be islands unto themselves as they do not consider the less experienced chief minister their leader. The situation in the NCP is even more chaotic. The NCP ministers will take instructions only from their leader, Sharad Pawar, and there are already two power centres within the NCP: one led by deputy chief minister Chhagan Bhujbal and the other by irrigation minister Ajit Pawar, who wanted to be deputy chief minister but was reportedly overruled by his uncle, Sharad Pawar. In this scenario the challenges that face the state and the government are enormous. Besides the law and order challenge posed by the MNS and Abu Azmi incident, the cloud of a terrorist attack perpetually hangs over Mumbai. Add to these the distress in the agriculture sector with farmers still committing suicide, the growing Naxalite problem and Mumbai’s civic problems. One only hopes that Prime Minister Manmohan Singh, who has always expressed his concern for the state and the city, and Congress president Sonia Gandhi monitor the progress of the government. The people of the state and the city have become more vocal in their duty to ensure this government keeps its election promises.

Rattled Beijing needs watching

Asian Age — Wed, 11 Nov 2009 03:32:10 GMT

Nov 11 : Given the crude Chinese reaction to it, the Dalai Lama’s visit to Tawang — which began last Sunday and is scheduled to last a week — will be recalled as making diplomatic history. The high priest of Tibetan Buddhism was also Tibet’s temporal ruler until the Chinese occupied his land militarily in 1951, forcing him to flee to India eight years later. Those were the early years of Communist China’s expansionism, on the altar of which even Communist Vietnam has suffered. The Tawang monastery had been the spiritual leader’s first stop once he was out of the Tibet area during his flight to safety. And yet, among the important messages that stood out when the Tibetan guru spoke to the media in the vicinity of the same historic monastery in Arunachal Pradesh last Sunday was his reassertion that he was not a "separatist", and had no plans to "split" China, as Beijing likes to allege. Precisely because the Tibetan pontiff defines himself as not being a "separatist", he is not in political favour with the Tibetan Youth Congress, comprising the Young Turks, most of whom were born in India and have never known their homeland. Purposively unmindful of this, Beijing insists on treating the Dalai Lama as a criminal on the run who must be given no place to hide, and who must be handed over to it by anyone who may find him. To Beijing, the Dalai Lama is a "separatist" and a "splittist" because he chose to take refuge in a foreign land rather than surrender himself to the tender mercies of the occupiers of his homeland. Before you shoot the dog, you must give it a bad name. That’s what the Chinese appear bent on doing with the Dala Lama. There is a parable in this for India as well.

Beijng knows full well that its so-called claim to Arunachal Pradesh is rubbish. Indeed, the absurd claim is less likely to have been made if India had not given the Dalai Lama shelter. But because it did so, it had to be taught a lesson in the shape of the 1962 attack. Aware of what’s playing in the Chinese mind, the Dalai Lama was unequivocal when he repudiated Beijng’s claim from Tawang, reminding China that after the attack it had declared unilateral ceasefire and withdrawn its forces to their present position (on the Tibetan side of the McMahon Line), clearly suggesting Tawang was not "southern Tibet", as Beijing likes to describe. In an instantaneous reaction, People’s Daily, the official mouthpiece of the Communist Party of China, warned India, quoting an "anonymous" scholar: "India may have forgotten the lesson of 1962, when its repeated provocation resulted in military clashes. India is on this wrong track again." The reason for the warning? That India permitted the Dalai Lama to enter a "disputed region". Leaving aside the bully language and tone, the military warning to India is clear enough here. Whether China can carry out its threat will naturally depend on a host of factors, but India can ill afford to leave itself unprepared.

For decades, Beijing had relied on Islamabad to keep India discomfited, using the terrorist route and the threat of the nuclear weapon assembled with Chinese assistance. Beijing’s actions vis-à-vis India bear careful watching when Pakistan is at risk of capsizing, in part on account of pressures from jihadists, who may also be interested in Chinese Xinjiang. However, what’s important is the map-making of the mind that Beijing indulges in. If Arunachal Pradesh is a "disputed" region for China, what’s occupied Tibet to the Tibetans? If the politburo can work this out, perhaps it will be ready to enter the era of civilised diplomatic discourse in the light of realities of the present.

Day of shame in Maharashtra

Asian Age — Tue, 10 Nov 2009 03:37:31 GMT

Nov.10 : The shameful episode of the physical beating of Samajwadi Party member Abu Azmi on the floor of the Maharashtra Assembly by four MLAs belonging to Raj Thackeray’s Maharashtra Navnirman Sena should give every Indian pause. The logical extension of the sorry Monday happening can only point to the road to fascism. India is fortunately too large and too deep to be swallowed by the dynamics of the MNS’ methods, but the time has come to ponder steps that a tolerant society and a democratic republic should consciously consider to put an end to such outrageous conduct by a political party that swears allegiance to our gloriously pluralistic Constitution but persists in abusing the freedoms it makes available. Not doing so now, and allowing the situation to drift for reasons of pusillanimity or political convenience, is likely to threaten the democratic template itself.

Mr Azmi was sought to be made an example of because he chose to defy the MNS goons’ diktat that every MLA must take the oath as a legislator only in Marathi, and not in any other language of the country, although the Constitution imposes no such bar. The SP leader opted for Hindi, the national language. Some have chosen to comment only on this aspect of the matter. But that appears off the mark. The result is likely to have been no different if the SP leader had chosen any other language. Indeed, language is not the fundamental question here, although the MNS has chosen to justify — indeed glorify — the thuggish action of its MLAs in the name of protecting the honour of Marathi, the state language. But the apparently militant espousal of Marathi is nothing more than a mobilising trick being resorted to by the MNS to expand its political base at the expense of its mother party. Marathi is a thriving language of ancient provenance. It has a glorious literary and cultural tradition. It is in absolutely no need of such protection as the MNS’ praetorian guards offer. The real reasons for the MNS’ "action" lie elsewhere. The party wants everyone on notice that there will be a violent price to pay if any section of society chooses to defy its diktats. The only way to meet such a challenge is for all segments of the polity to unite. Reports of mob violence in reaction to developments in the Assembly have begun to come in from Mumbai and other areas. These too must be firmly checked by the authorities.

The MNS MLAs committed planned and wilful violence against the decorum and procedures of the Assembly. For this they have been duly suspended for four years. But they have also done violence to the Constitution of India and to the person of a sitting MLA. These are punishable crimes. The instigation for the physical assault on Mr Azmi is traceable to the inflammatory words of MNS chief Raj Thackeray. The state government will be in breach of the confidence reposed in it in the recent election if it did not uphold the law of the land. Chief minister Ashok Chavan has condemned the "goonda" conduct of the offending MLAs. This was necessary, but does not go far enough. The Congress and NCP, as parties, have yet to come out politically against the planned assault on democracy. The Shiv Sena and the BJP, the other key players in the state, also cannot afford to sit idly by. Leaders from the Hindi-speaking states have narrowly commented only on the insult to the national language aspect of Monday’s shameful incident. Every party is called on to take a broader view of the frightening excess committed by the MNS and its elected representatives.

Telecom battles to get tougher

Asian Age — Mon, 09 Nov 2009 04:36:45 GMT

Nov.09 : Competition in the telecom industry is proving tough for industry players, and it could soon become a struggle for survival. Some see a bloodbath and consolidation, but others feel this competition can be met halfway through innovation. For instance, the per-second billing started by old CDMA players such as the Tatas and Reliance Communications started only because of the desperate need to attract more subscribers. And other players are catching up. The Tata company introduced unlimited talk time, which is yet to be copied by any other service provider. The telecom watchdog body had been advocating "per second" billing for years, but the telecom regulatory authority turned a deaf ear. One view holds that there is still considerable room for profits. For instance, Bharti Airtel makes a profit of 40 per cent before "earnings before interest, tax, depreciation and amortisation", or EBITDA, and this might come down to 35 per cent after EBITDA, though some say 20 per cent or even sub-20 per cent. Even in 20 per cent, players can still see profits because the telecom regulator had fixed 16 per cent as a fair return in 1998, when the licensing system came in. In future, for their profitability, companies will have to go in for value-added services to make their operations profitable. For instance, since Indian subscribers are more entertainment-oriented and would like more entertainment on their mobile phones, companies will have to programme services accordingly and cash in on this hunger for entertainment. The winner is going to be the subscriber because of this competition, which will be both in tariffs and value-added services. The beneficiaries will be those who offer minimum talk time. For instance, the newest telecom service provider has come out with half-paise-per-second billing. This sort of competition will drive tariffs further down. The new players have realised that the real markets are in the rural areas, and that is where they are going to ensnare subscribers.

The total wireless subscriber base is now at 471.7 million, compared to 456.74 million in August, and quite a chunk of this has been taken by Tata Teleservices because of its innovative billing features. Players will now have to play on volumes, and these volumes can now come only from rural areas as the metros and mini-metros look saturated. It will be even more challenging times for new players to acquire marketshare and make reasonable profits. The old players have already recovered their costs, but they too will be affected as their margins will come down and there will be pressure on them as they roll out 3G networks. The 2G profits were cross-subsidising the 3G rollout. The churning in the telecom industry will become more evident when portability is ushered in sometime next year, and the big boys, however popular, will face a greater attrition rate. Some feel that there will be a bloodbath and consolidation as profits take a hit. The new operators will be hit the hardest by the dwindling tariff structure, particularly because when they designed their project plans, higher tariffs of 75 paise were in vogue. The two profit areas are ARPU (average return per user) and minutes of use, and both these have been ravaged in the new tariff structures. ARPU has been declining every month: according to one study it was Rs 350 a year ago, while today it is between Rs 182-220. It will go down further now, with the per minute and per second billing structure.

RSS shock and awe in BJP

Asian Age — Sun, 08 Nov 2009 02:50:18 GMT

Nov 08 : Rarely, if ever, has the Rashtriya Swayamsevak Sangh (RSS) expressed itself as unambiguously on the selection and composition of the top leadership of the BJP, a party it has spawned but has kept a formal distance from for the sake of appearances, as Mohan Bhagwat, the organisation’s chief, did on Friday, leaving BJP leaders apoplectic. The so-called "cultural" outfit has, thus, come out into the open as the machine that gives dictation to the BJP which is meekly accepted. Political movements and parties develop their own cultures. This is in part shaped by the ideology they follow, and is in part the outcome of the wider milieu in which they operate. As a party of the Hindu right, the BJP had broken its confines of being no more than the sum total of RSS workers and their families and friends, and gained a wider acceptance in the post-socialism phase of Nehru and Indira Gandhi as Congress went into a decline. A wide variety of individuals, who wouldn’t see themselves as communal in outlook, veered toward the party in several evolutionary steps. They believed they were making the shift to a clean, transparent, democratic political vehicle that was better suited than any other formation to take India forward in the changed era. It will be interesting to see how this constituency views the flagrant interference of the RSS in BJP affairs. Mr Bhagwat may direct the choice of the next BJP chief, but will his command help keep the party together? A leader like former external affairs minister Jaswant Singh has already found his trust had been misplaced. It is not unlikely that the BJP has a considerable following of similarly inclined individuals. The new type of politically inclined but non-RSS constituency that had also been drawn to the party on account of the presence of leaders such as Atal Behari Vajpayee and Lal Krishna Advani is today apt to be disillusioned. This segment had something to do with helping the BJP gain a wider appeal and establish a partial hegemony within Indian polity.

Mr Bhagwat’s shockingly frank announcement makes it plain that none of the vaunted younger generation BJP leaders operating in the country’s capital can match the young guns of the Congress — the BJP’s main rival — led by Rahul Gandhi, whose energy, operating style, thinking, and charisma have been a revelation after he had been written off by most. When the rabbit is sprung out of Mr Bhagwat’s hat, we shall know who Rajnath Singh’s successor is going to be. But no one in the BJP today looks forward to the announcement of the new chief with any sense of anticipation, such is the party’s degraded morale. Worse, the new chief, operating under the RSS leader’s direct mentorship, is likely to begin with a handicap if he is seen by the party’s current big wigs, who have nursed deep ambitions of their own, as an interloper. These are not easy times for the main Opposition party. The mountains and forests are moving in a Macbethian sense.

Disinvesting PSUs boon to investors

Asian Age — Sat, 07 Nov 2009 06:50:29 GMT

Nov.06 : The government’s decision to go in for a two-pronged disinvestment programme will surely add quality and depth to India’s stockmarkets. The Union Cabinet has decided that in already-listed PSUs the government will bring down its shareholding to 90 per cent where it exceeds that figure, and unlisted PSUs that have been making profits for the past three years will have to get listed and in which the government will unload 10 per cent of its stake. The government hopes to net around Rs 60,000 crores from the entire exercise, and when all these PSU shares come to the market the Bombay Stock Exchange’s market capitalisation could increase by over Rs 3 lakh crores. This is indeed a boon for investors as the free float of good companies in the market is scarce. It will be another few years till all the companies listed on the exchanges bring their public shareholding to the government-mandated level of 25 per cent. Many of the PSUs are quality companies that have been registering profits for investors during the economic slowdown. This move will be doubly beneficial for the PSUs’ efficiency: in addition to being accountable to Parliament, as they are now, they will also come under the scrutiny of the market and of investors.

Having said this, there are two issues to be discussed. One: disappointment that proceeds of this disinvestment will be routed to social sector spending through the National Investment Fund, but with a difference. The entire amount will be used to fund social objectives like schools, hospitals and roads; and not just the income that NIF would have earned from this amount. This may ease the pressure on the government’s burgeoning fiscal deficit, but if debt is not retired with the sale of an asset, then it would essentially mean eating up an asset. The route the government has adopted to fund its social objectives is the easy one — it does not have to do any work, and merely transfers public wealth to some public schemes, of which there is unlikely to be any accounting.

The other important point is that Union home minister P. Chidambaram said very emphatically that disinvestment was being done so that the public gets a shareholding in PSUs. So who is this public? If by public Mr Chidambaram means the aam aadmi, then he will have to think twice. These PSU will have to come out with initial public offers, or follow on offers, and in the whole process of an IPO the retail investor or aam aadmi gets a raw deal. This is specially so in pricing and allotment. It’s a cosy club of people that decides on pricing, which they use to their advantage on listing day to flip and make money. It’s imperative that the government looks into this whole process of IPOs and sees how the process has been hijacked by merchant bankers in collusion with promoters and certain high net worth individuals. There is no democracy in the whole process. Why should there be multiple classes of shareholders. Why not sell these shares through the exchanges as is done in the secondary market? This would eliminate costs and middlemen, or expensive intermediaries, as the merchant bankers are called. It would also eliminate a lot of mischief that goes on during the IPO process. Sebi has done a lot of good work in eliminating some of the mischief, but a lot remains. So if the government really wants the people of India to be shareholders, it should consider this as an opportunity to set a democratic trend in IPOs. Sebi chief C.B. Bhave, for whom the investor always comes first, could help the government in this process. The government’s IPOs need to be democratic in design and action.

India’s stimulus: To end, or not to end...

Asian Age — Fri, 06 Nov 2009 07:43:38 GMT

Nov.06 : The monetary and fiscal authorities in this country have considered withdrawal of stimulus packages; and while the Union finance minister stressed these would remain for the time being, he also clearly said that the government would wait for third-quarter GDP numbers and advance tax collection figures to determine if the economy was solidly on the path of recovery before taking a call on ending the stimulus measures. Mr Pranab Mukherjee had voiced concern on the moderation of growth in September after signs of a pickup in industrial growth in the past few months. Exports to Europe, North America and Japan were down 32.7 per cent: these countries together account for 60-65 per cent of our total exports. He also articulated the need to return to fiscal prudence as soon as the economic circumstances permit. All in all, there are signs that unwinding of the stimulus package is not very far from the government’s radar. The G-20 nations too feel it is time for countries to draw up exit strategies; and every time this is publicly spelt out, stockmarkets around the world go into a tailspin. The G-20 had earlier said there was no question of an exit till mid-2010; but today some countries like Australia and Norway — admittedly none of the major economies — have already taken steps in that direction by raising interest rates. The United States, Britain, and the major European countries are, of course, in no mood to dismantle stimulus packages yet.

This divergence of views about the immediate future — with a part of the world following an easy money policy and the other on a different trajectory — could well impact world financial markets. Australia, for instance, has raised interest rates, so US dollars could well flow there since the US and Europe have almost zero interest rates. If different nations follow different policies, there will be another round of adjustments. The Reserve Bank of India, for example, will have to absorb the capital inflow of funds, and has little choice but to absorb the foreign exchange at a cost. It will have to sterilise these dollars, which in turn will lead to a chain reaction. An easy money policy will also lead to a rise in the prices of crude, commodities, gold, etc, and this could have an inflationary impact as these commodities are rising due to speculation and not demand and supply.

There is, however, a positive side to the West continuing stimulus packages. Emerging markets such as India, China and some others in Southeast Asia, which depend on exports to the US and Europe, will benefit if these countries continue to import. There are exciting times ahead for the world’s financial architecture as a whole new set of dynamics will start. A coordinated withdrawal of stimulus packages would be ideal, but if this is not on the radar of many nations, nothing much can be done about it. India, for one, will have to take a decision keeping domestic priorities in mind, but also not forgetting that there will be consequences given that we live in an interdependent world. India was not as badly hit by the global financial crisis as some other countries, therefore its stimulus packages were also not of the same quality as some others — such as the United States and even China. Fortunately, these packages coincided with the Lok Sabha elections in India, so it had a further dimension here. Of late, while the government has talked about withdrawing fertiliser and oil subsidies, nothing has been said about a waiver of farm loans this year even though farmers are in distress due to the drought in the kharif season and suicides by farmers continue.

Rein in pak for peace in asia

Asian Age — Fri, 06 Nov 2009 07:43:12 GMT

Nov.06 : Sir, The frequency and intensity of the recent bomb blasts in Pakistan must have reverberated through Pakistan's interior minister Rehman Malik's brain and rattled him enough to claim that India has been in cahoots with the Taliban and is behind the recent mayhem there. These incoherent comments are clear signs of the minister being shell-shocked. A lesson about the Pakistan authorities' patronage of terrorists and the Taliban is in the pet manual where it says that the big cat, like the lion and the tiger, can be kept only so long, since as they grow older they invariably turn on their masters. Even after the recent spate of terrorist-related violence in Pakistan, the fact that the US continues to support Pakistan, as evident in US secretary of state Hillary Clinton's recent statement during her visit to Pakistan, is beyond comprehension. It is time to take the Pakistani bull by the horns, secure its nuclear arsenal, disband its intelligence agencies, like the Inter-Services Intelligence, and prop up a more committed and meaningful democratic government.

S. Kamat

Goa

Bengal rivals in verbal duels

Sir, Railway minister Mamata Banerjee and West Bengal chief minister Buddhadeb Bhattacharjee are engaged in a wordy duel. Marxists today have become a sort of "bunch of jokers" to say the least. As Ms Banerjee has rightly said, Marxists and Maoists are two sides of the same coin. Marxists are always on the backfoot when such moments come. What happened in Nandigram and Singur, where the Communist Party of India (Marxist) was totally exposed and Ms Banerjee stormed into the bastion and has established a non-CPI(M) scenario in the so-called fort of Marxists. Maoists are a sort of embarrassment of the riches to the Marxists and they try to find a scape goat in Ms Banerjee since all their weapons fell flat against her. The Marxists are inviting trouble by criticising Ms Banerjee at a time when she's riding high and is likely to end their superiority in West Bengal.

S. Venugopalan

Via email

'84 sikh riots haunt india

Sir, The 1984 Sikh riots have come to haunt the nation once again. Irrespective of whether those behind it would be made to pay for their crimes, speaking philosophically, a time will come when they will regret their actions. After all, it is in old age that one becomes remorseful for the crimes committed in his/her past. Therefore, it is certain that the criminals responsible for this genocide will spend sleepless nights while awaiting death with the terrifying images of their crimes flashing through their mind, making them ashamed of what they did. That is the way the power that guides us all dispenses justice.

V.P. Damodar

Viman Nagar, Pune

***

Judicial probe must be fair

Sir, The Karnataka high court's Justice P.D. Dinakaran's elevation to the Supreme Court has been temporarily put on hold as the Chief Justice of India has sough more time and is seeking information from Tamil Nadu where fresh "evidences" were brought to the notice of the Chief Justice. But there is no point in dilly-dallying on the issue. Everyone of us expects the judiciary to function independently, but honesty is the need of the hour. Law minister Veerappa Moily, who is bent on bringing major changes in our judicial system, must initiate action at the earliest.

Inamdar Ramachandra

Via email

Security: Citizens can’t be ignored

Asian Age — Thu, 05 Nov 2009 04:42:12 GMT

Nov.05 : While the Indian citizen has never seriously grumbled about the security needs of VIPs — and this shows people are fully alive to concerns that have begun to haunt us on account of the rise of terrorism — it is dismaying to note that the modifications, realignments and upgrading of security procedures and structures for top national leaders from time to time have studiously omitted to take into account the existence of ordinary people who pay taxes to keep VIP security shipshape. The callous runaround given to a seriously ill patient for about two hours by the security apparatus in Chandigarh on Tuesday, occasioned by the Prime Minister’s address at the Post-Graduate Institute of Medical Education and Research, is likely to have led to the man’s death by the time he gained admission to the PGI premises. By any yardstick, this is a shocking occurrence. It is only in a democratic dispensation that security routines can be modified to bring the citizen into the picture. While Dr Manmohan Singh is not to be personally blamed for the tragedy, and indeed he has voiced his anguish and ordered an investigation into the incident, it would doubtless occur to the Prime Minister that all is not well with the organising principles of the security system in place for VIPs. Citizens have suffered the hamhanded ways of security in silence over the years. When airspace is blocked and road traffic is held up for indefinite periods, it is not only time that is lost; the urgent business of countless individuals suffers, sometimes with consequences that are serious and sometimes fatal, as the Chandigarh episode underlines.

If terrorists are able to successfully launch attacks against top officials of the state, the impact will be felt on our democratic system as a whole. So it is futile to cavil at foolproof security for the top layer. But surely there are better, less conspicuous, ways to achieve the result without causing harassment to citizens. There is a case here for our security specialists to retool themselves by looking at the working systems of the Western democracies. It must be kept in view at all times that the best-laid security arrangements can unravel if the citizen turns callous or indifferent. There is another aspect to the security that operates in the country. Many B-grade politicians, not to speak of charlatans who come to occupy nominated offices by exploiting their connections, make demands on the security apparatus as a matter of right. They falsely think having government gunmen around enhances their prestige. Catering to their whims puts needless pressure on security sector resources that can be better utilised elsewhere, and increases the daily harassment of citizens. Massaging the egos of bit players cannot be the remit of a democratic system. It is time the bewildering large number of security categories created by the Union home ministry was compressed. High-value private individuals need to be encouraged to organise their security privately, as is done in other democracies.

Let others follow judges’ example

Asian Age — Wed, 04 Nov 2009 02:32:46 GMT

Nov.04 : The public disclosure of assets by Supreme Court judges is likely to have a cleansing effect on the system, and boost the image of the higher judiciary in the country. On the basis of what has been brought out in the open, it is clear that our top judges are honourable officials. It is a relief to know that their moveable and immovable assets at the fag end of their working lives, and those of their spouses, are on the same footing as ordinary middle class professionals, if not lower in some cases. When it is widely perceived that institutions of public service have declined noticeably in standards of probity, the higher judiciary has clearly upheld the meaning of scruple. It is to be hoped that the example set by the Supreme Court judges will have a cascading effect on judges of the all the high courts. (To their credit, judges of the Karnataka and Kerala high courts have already made a full disclosure of their assets.) Perhaps this can pave the way for assets’ disclosure by tiers of the judiciary below the high court level, whose reputation has been sagging for some time. India is passing through a phase of socio-economic transition that involves rural-urban migrations of a new order, occupational mobility, expansion of self-employment opportunities through financial openness, burgeoning of commercial interests, the large-scale displacement of populations, and property sales for purposes of urbanisation and industrialisation. If not handled with fairness and explicit sense of justice, the result can be an internal crisis that will weaken the system from within. A judicial system known for its uprightness is indeed the need of the hour.

True, the Supreme Court judges have made a "voluntary" disclosure of their assets as they are not bound by any law to do so. Whether such a law is needed, if the ripple effect of the action of our seniormost judges can be felt lower down the judicial ladder, is a moot point. However, the step taken by the country’s highest judicial officers begs the question whether all those who depend on the public exchequer for their remuneration should not be made to follow their example. There is a widespread impression, for instance, that legislators grow seriously rich even after doing a single term. Naturally, a case can be made out for not only election candidates declaring their assets, but also serving legislators. If anything, the case of government officials at all levels is even more compelling.

India has the sorry reputation of being among the more corrupt places in the world. This straightaway impacts economic development and growth, and hurts the poorest sections more than anyone else. Any measure that helps to significantly reduce opportunities for corruption will be a social balancer of reasonable magnitude. Finding ways to have public disclosures of assets across all branches — judiciary, legislature and executive — is likely to go a long way in choking off corruption. Whether this should be on a voluntary or mandatory basis may be determined on the basis of evolving practice, for even one volunteer can put the others to shame and oblige them to follow.

Why are there so many holidays?

Asian Age — Tue, 03 Nov 2009 05:48:39 GMT

Nov.03 : The move by the Securities and Exchange Board of India to cut the number of holidays in the country’s stock exchanges is more than welcome. The sooner it happens, the better for the market. India has the most holidays — 19 — compared to other major countries; the United States has the least — nine days. But holidays are a malaise that is not limited to stock exchanges, it afflicts the nation as a whole. And what makes holidays in India really pernicious is that they are essentially "political" holidays, typical of a soft state. They are there to please different groups and communities; and in addition to national holidays each state has its own specific ones. One can understand closure on Republic Day, Independence Day or the major festivals of various religions, but why are the exchanges, banks and government shut on so many other days? Every year the number of holidays keeps going up in the name of appeasement.

For that matter, why should it be the business of state governments to instruct banks when they may or may not close? Should this not be left to the Reserve Bank of India, whose job it is to regulate banks in this country? All these holidays are in addition to Sundays, when everything is shut, and Saturdays, a full holiday for some and a half-day for many other offices and banks, etc. It is time the government gave some thought to this subject, and in consultation with all sections of society evolved a nationwide code for holidays in India. It might not be a bad idea to take a cue from some other Asian countries. They have far fewer holidays than we do, and most of these are for occasions which much larger sections of society can celebrate. In China, for instance, March 8 is a holiday for International Women’s Day; and there is a Children’s Day and an Army Day. Japan has a Coming of Age holiday, Greenery Day, Vernal Equinox, Respect for the Aged Day, Autumn Equinox, besides of course Christmas and New Year.

It will be good, therefore, if Sebi can take the lead and drastically curtail the number of days that India stops working. One can only imagine the loss if one considers the daily turnover on two major stock exchanges, which average a total of Rs 70,000 crores to Rs 1.5 lakh crores, even though almost 80-90 per cent of this is speculative trading.

Having said this, holidays are not the biggest reform that Sebi has to undertake; changes that can bring more real business than mere curtailment of holidays will. The one issue crying out loud for implementation is the settlement in derivatives. There is an increasing demand for settlement in futures and options to be done in shares and not cash as it is now. This is now causing considerable damage — making it a speculative rather than investment market. The cash turnover on both the National Stock Exchange and Bombay Stock Exchange is between Rs 10,000 crores and Rs 20,000 crores, while in the futures and options segment it is nearly Rs 80,000 crores. This causes tremors in the market as the settlement day approaches on the last Thursday of every month. The outstanding position in October was over Rs 1 lakh crores, and one could see the effect on the markets as the Sensex plummeted below the 16,000 mark by Friday. Settlement in shares was supposed to be a temporary measure, till the futures and options system was ready. The question now is: how long will this take?

A sorry mess in Karnataka

Asian Age — Mon, 02 Nov 2009 06:06:19 GMT

Oct.02 : The BJP had dispatched senior party leader Arun Jaitley to Karnataka to sort out the mess chief minister B.S. Yeddyurappa has got himself into with a section of his legislators led by the Reddy brothers, the state’s powerful mining magnates who are believed to have played a crucial role in securing the party’s victory in the last Assembly election. The mission was a write-off for all practical purposes, and representatives of rival factions are in New Delhi in the hope of a patchup with the purposeful intervention of the national leadership. The trouble, however, is there is no high command at the moment. With the prolonged bickering and bad blood among the most senior BJP leaders, and consecutive defeats in the May Lok Sabha election and in elections to three state legislatures last month, there is no one at the party’s national headquarters whose words would be powerful enough to make the squabbling factions fall in line. The loss of moral authority and the loss of leverage, following loss of power in several states — not to speak of the Centre, has robbed the putative BJP brass of the élan needed to deal with renegades. At present there is simultaneously a leadership vacuum and a flux, extraordinary though that may sound. The centre is not holding and no one has an idea as to the incoming top team. Consequently, no individual or group appears to be in control. It is also no longer clear if, given the complexities of the moment, even the RSS, Hindutva’s mother ship, is in a position to crack the whip.

The ground reality in Karnataka suggests that the chief minister is an influential leader of the Lingayat community, on which the BJP has traditionally depended in the state. Mr Yeddyurappa, personally, is thought to command respect among farmers. That’s a powerful combination. As such, entertaining any thought of jettisoning him to appease the rebels is unlikely to produce a satisfactory solution. Besides, Mr Yeddurappa and the core team he leads come from the RSS stables. As such, the ideological component of the BJP legislature party in the state might broadly be expected to abide by their present leader. The root of the problem appears to be the new type of politician who has wormed his way into the BJP. It was a mistake on the part of the party to have encouraged such elements before the election in the hope of cashing in on their financial clout. The fallout is that the faction led by the mining lobby is reported to carry about a third of BJP MLAs in the state. This would make the group large enough to destabilise, if not displace, the government, if it so wished. It is not unlikely that the commercial group is disenchanted as it is unable to prevail on the chief minister in all situations.

It will be a pity if the Congress responded to overtures reportedly being made to it by the commercially-aligned turncoats on the lookout for a new government in the state that they might drive. That will detract from the moral standing that the party is gaining nationally. If it is tempted, it may be sure that any government it may hope to form with the aid of the self-seeking mining group will by definition be unstable. Indeed, it appears the instability factor has now been introduced into any equation that may be devised to form a government within the present House. This includes a government based on an intra-BJP compromise, not to speak of one stitched together with the help of H.D. Deve Gowda’s MLAs.