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THE HINDU

The engine is politics

Wednesday, March 14, 2012




Given India's fractious politics, a Railway budget wouldn't be a Railway budget if the Opposition didn't accuse it of being “anti-people.” But when the charge comes from the Treasury benches — and from the coalition partner to which the hapless minister belongs, whose leader then goes on to demand his sacking — the signals this sends out about the state of the government are not at all encouraging. Considering the financial crisis the Indian Railways is passing through, Railway Minister Dinesh Trivedi has tried to arrest the slide. But the method he has chosen hits poor citizens the hardest. Ironically, it was his predecessor, Mamata Banerjee's pursuit of a political agenda in West Bengal that sent the railways down a dangerous financial track. The problem with populism is that it is impossible to sustain indefinitely. For eight years, successive Railway ministers took pride in never raising fares. Of course, when the deferred rise eventually comes, the one-shot hike hurts more than if there had been continuous but marginal increases over a longer period. So while Ms. Banerjee is obliged to decry Mr. Trivedi's fare increases — which range from 20 per cent to 150 per cent depending on the fare class and distance travelled — she must share the blame for this kind of crisis budgeting. The Minister tried to soften the blow by a major pre-budget revision and rationalisation of freight tariffs that should raise Rs. 20,000 crore a year. But the opposition to his budget makes a fare hike rollback for the poorest of passengers inevitable.
Where Mr. Trivedi has scored is in his focus on safety. Besides setting up a Railway Safety Authority as a statutory regulatory body as recommended by the Kadkodkar Committee, tracks, bridges, signalling and telecommunications, rolling stock, stations, level crossings and freight terminals will all be focus areas. Mr. Trivedi's decision to pursue the redevelopment of stations through the PPP mode may help upgrade passenger facilities but the contracts and projects must be carefully audited. He also said a Logistics Corporation will take on freight, and a national High Speed Railway Authority will be set up to look at the six corridors identified for development. However, the key index the Railways has to look at is the Operating Ratio — the amount spent to generate Rs. 100 in revenue — which has climbed to 95 per cent. Mr. Trivedi intends to bring this indicator down to 84 per cent in the coming year. The long-term health of the Railways depends on meeting that efficiency target and going beyond it; squeezing a few extra rupees from those passengers who may least be able to afford it is hardly the answer.

Keywords: Railway Budget, Dinesh Trivedi, Kadkodkar Committee, railway fare hike, Railway Safety Authority, railway safety

http://www.thehindu.com/opinion/editorial/article2995520.ece

Indian, not TMC, Railways



What should be a surprise isn’t that the first real hike in railway fares in the last 10 years has been opposed by the party to which railway minister Dinesh Trivedi belongs, but that it took so long for someone to instal the first steps to save a great Indian institution from certain penury. Mr Trivedi, in his bold Railway Budget speech on Wednesday, proposed an across-the-board hike in passenger fares in order to raise a much-needed extra Rs 4,000 crore this year. For far too long, the Indian Railways has subsisted on a self-destructive diet of runaway expenditures tied to plummeting income.

The usual practice of robbing Paul (the Indian exchequer) to pay Peter (the Indian Railways) had to halted, especially since a desperate modernisation programme including the installation of safety measures is non-negotiable while at the same time to be accounted for. Which is why, for too long, short-term gains were trumpeted as feathers in the railway minister’s (read: his or her party’s) cap at the cost of the railways. Rising above myopic party political considerations, Mr Trivedi has underlined the fact that his responsibility as Union minister is first to the Indian Railways and then to his party. With Trinamool Congress (TMC) chief Mamata Banerjee openly opposing the railway fare hike, what we see is a regional leader vehemently opposing this basic prioritisation of nation over party.

The open opposition of the TMC to the budget proposals set by one of its own MPs has let the cat out of the bag. If Ms Bane-rjee’s autocratic ways of dealing with Centre-state relations see-med parochial when it came to her opposition to UPA policies such as FDI in retail and the setting up of the National Counter-Terr-orism Centre, her public proclamation that her party ‘won’t allow the fare hike’ confirms our worst fears of her style of politics. As a former railway minister herself, she should have known better than to showcase her displeasure about “not knowing about the fare hike”. The railway minister’s boss in Delhi is Prime Minister Manmohan Singh and not chief minister Mamata Banerjee. To get her approval for a Railway Budget is as preposterous as a West Bengal budget being approved by a central minister.

The TMC is well within its right to oppose Mr Trivedi’s laudable budget proposals — even as it makes it look ludicrous politically even by Trinamool’s ‘opposing for the sake of opposing’ standards. But what its opposition — and especially the reason for it — has exposed is Ms Banerjee’s churlishness that she dresses up as populism and ‘pro-people’ politics. This should be a clear signal to the Congress-led UPA that one of its allies sees the nation and the state the latter rules locked in a zero sum game.
However imp-ortant an ally the TMC may be in terms of numbers for the upkeep of the central government, we — and one hopes the UPA — realise the dangers of having such self-serving allies. As for Mr Trivedi, we applaud not only his courage for presenting a budget that hasn’t gone down well with his knee-jerk-reacting party but also for presenting a budget that provides a roadmap ahead for the nation’s people — that of his home state, West Bengal, included.



Derail Budget


Trivedi’s Railway plan shows courage — it’s a disgrace that his party wants him fired for that


Such Railway budgets happen rarely. Once in 10 years, literally. For Railway Minister Dinesh Trivedi of the Trinamool Congress, to muster courage and hike aam admi fares by up to 20 per cent, must have been a leap of faith. Because in India, general class passengers account for 95 per cent of total traffic. The balance 5 per cent is made up by those travelling in air conditioned coaches. The expert group for modernisation of Railways chaired by the prime minister’s adviser Sam Pitroda had recommended a one-time 25 per cent increase in fares to raise Rs 37,500 crore. Trivedi did not exactly do that but with an across-the-board passenger fare hike and a modest 5 per cent growth in traffic, the Railways projected earnings to go up by about Rs 7,000 crore in next year, 25 per cent more than the expected earnings in 2011-12.
The Railway Budget for 2012-13 is notable not just for the fare hike. It gives a much-needed fillip to public-private partnerships in railways by planning to induct a member in the Board who will specially pursue PPP projects. It also does not try to window-dress the Railways’ efficiency by accepting that the operating ratio (the ratio of amount spent to earn Rs 100) will slip to 95 this year. The budget also lays the groundwork for setting up a tariff regulatory authority, a move aimed at eventually depoliticising increases in passenger fares and freight rates. To do all this in one budget is commendable. Trivedi possibly anticipated that Railways was headed towards bankruptcy. He did not stop at just raising the alarm. He pulled the chain, but this time not to stop the engine, but to put the train back on track.
It does not require an economic genius to do all this, but definitely strong political will. Ideally, it would have made sense to spread the hike in fares over a period of time, especially for the bottom segment of passenger traffic. A modicum of increase every year since 2002-03 would have meant nothing to the aam admi. By effecting a sharp hike in one year, he provoked his party, rubbing it in with needless references to Bhagat Singh, God and the country. The capricious Mamata Banerjee has asked for his head — it will be a shame if she gets get it along with a rollback.

Well Done, Trivedi



Resist pressure to roll back much-needed hikes in passenger fares



    Railway minister Dinesh Trivedi has done a good job, even factoring in the advantage of low expectations. He has not surrendered completely to populism and presented a reform-oriented budget. His party boss, the mercurial Ms Mamata Banerjee, has threatened to force a rollback of the average 19.2% increase in passenger fares that have been proposed after a gap of 10 years. The UPA should not give in to this populist bluster. The reality is that no major party, save the Trinamool, is ready to destabilise the government and face mid-term elections. The UPA should stand by these proposals and call the Trinamool bluff. Mr Trivedi’s break from the tradition of freight and upper-class fares subsidising lower-class fares is wholly welcome. The plan to make automatic adjustments in tariffs to factor in rising fuel costs also makes eminent sense and would pave the way for deregulation of fares. Passenger fare hikes will yield an extra . 7,000 crore next fiscal. Freight earnings are projected to grow by a whopping 30%, with the Railways expecting to move 55 million tonnes more of goods. 
More than half of its plan outlay of . 60,100 crore for 2012-13 would be met from internal resources and market borrowings. So, revival of growth and removal of irrational bans on mining hold the key for the Railways. The good news is that the Railways has increased appropriation to the depreciation reserve fund, meant to replace old assets, and also pension fund to meet extra liabilities. The operating ratio, which measures how much of revenue is taken up by current running costs, has been estimated at 84.9% next fiscal against the dismal 95% this fiscal. Such financial improvement is imperative, if IR is to invest in safety and modernisation. 
Mr Trivedi has done well to accept recommendations of the Pitroda panel on modernisation and Kakodkar panel on safety. New rolling stock, reinforced bridges and tracks to enable higher speeds and better signalling are all required. Reforms on multiple fronts can be implemented only when the political class stops viewing the Railways as a platform for disbursing patronage. Surely, Mr Trivedi has broken new ground.



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Populist Flailings



Populist Flailings

They could de-train an innovative rail budget, and much else besides



    There can only be two takes on the storm raised by Mamata Banerjee over the railway budget presented by Union minister Dinesh Trivedi, who belongs to her own party. The first is that the fracas was orchestrated, so the Trinamool could play reformist and populist at the same time with an eye to courting two different constituencies. The second interpretation is even worse: Mamata genuinely opposes passenger fare hikes, a long-pending measure to raise resources for the cash-strapped national transporter and its much-needed modernisation. This would mean she’s inveterately populist – a position she, in misguided wisdom, associates with being pro-poor. 
    None of this augurs well for the upcoming general budget. There’ll be misgivings about Mamata playing to the gallery by bashing any reform the finance minister proposes in the budget. So, he might think it better to play safe than sorry. The upshot for the UPA is clear: Mamata as an ally has become a liability. On issues ranging from land acquisition revamp and the 
India-Bangladesh Teesta accord to multibrand retail FDI and the NCTC, she’d rather wreck coalition unity publicly than hold dialogue to resolve differences amicably. The railway budget controversy is merely the latest – and most absurd – example of her serial trouble-making. The UPA should begin to seek a replacement ally, in order to counter political instability at the national level. 
    Regardless of Trivedi’s fate as minister, he deserves credit for coming up with a bold and visionary budget. He sets an ambitious target on improving the operating ratio – percentage of expenditure to earnings – by almost 10 percentage points to 84.9% in 2012-13. He unveiled many smart plans, including estab
lishment of a statutory railway safety authority, a railway research and development council to spur innovation, a body to target redevelopment of 100 stations through the PPP route on the pattern of new airports, as well as a logistics corporation to ensure last-mile delivery of freight traffic. 
    Trivedi does well to call for a body of experts and other stakeholders to study the need for an independent railway tariff regulatory authority to fix freight rates and passenger fares. Equally innovative is the proposal to link the fuel cost of passenger services to fuel prices, as is the case with airfares. The budget rightly focusses on improving passenger amenities, initiating moves to speed up trains and introducing a real-time train information system. However, there are many road bumps ahead, since funds for modernisation can’t be mobilised solely from freight and passenger fares. That’s a challenge the Railways will have to meet in innovative ways.



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The Buzz

Monday, March 5, 2012



Birthday bumps Congress general secretary Digvijaya Singh, the one with the gift of the gab and a dimpled smile, turned 65 on February 28. As all eyes are set on the outcome of the assembly elections in Uttar Pradesh, Singh, who is in charge of the politically important state for the Congress, celebrated his birthday while on the campaign trail. But he did not forget to thank all those who wished him. “Thanks to all those who abuse me. Keeps me in the news and in their minds,” he sweetly tweeted.

Too close for comfort
Actor Nagma may have encountered such situations onscreen many a times. But the behaviour of Congress candidate from Barhapur, Hussain Ahmed Ansari, during a public meeting in his constituency raised her hackles. She nearly walked out of the rally in a huff when Ansari tried to get close to her and read out a couplet that she found, well, offensive. Congress spokesman Rashid Alvi thankfully intervened and placated Nagma who then appealed to the gathering to vote for the Congress — if not for Ansari.
Look who’s being a BSY body
A battle of nerves between former Karnataka chief minister BS Yeddyurappa and his arch rival, BJP general secretary Ananth Kumar, is on the cards over the nomination to the Rajya Sabha from the state. Kumar is pushing for the renomination of Hema Malini, whose one-year term is expiring on April 2, along with four other members. BJP chief Nitin Gadkari, too, is keen that the ‘Dream Girl’ gets a full term. But BSY, upset that he has not been re-instated as CM, wants his loyalist Dhananjay Kumar to get the nomination. The big question is whether BSY will let BJP MLAs abide by the high command’s choice.

One verdict is in


Record high turnout means deepening political participation — and a tough task for the winner
The high turnouts in the states that went to polls — four of these states registered their highest ever voting percentages — have announced that participatory democracy in our country stands enhanced. It will be known today what the message of the new voter is. Has she voted for change? In a multi-cornered contest as in Uttar Pradesh, for instance, will the larger turnout mean a more decisive, less fragmented outcome? Given that a large part of the increase is attributed to the young first-time voter, will it mean politics will now grow younger in ideas, and an older politics centred on identity and congealed resentments overtaken? Whichever way it goes after the ballot boxes are opened, this much is certain: today’s victors will have to settle down to a task more challenging. They will have to deal with many more dreams and aspirations, they will be subject to greater watchfulness than governments before them.
The increasing turnouts must be seen in a larger context. In several Western democracies, there is much agonising about the setting in of voters’ cynicism and indifference, reflected in their dwindling numbers. India does not just buck the trend with its healthy electorates, it sends out a yet more enviable message: here, past surveys have underlined, voter participation is known to go up as one moves down the ladder of caste and privilege. That is, the enduring character of India’s democracy and its sturdiness is made up of the fact that the poor and the disprivileged, by and large — in spite of pockets of apathy and disillusion as in Naxal-affected areas — continue to have hope from and trust in the system. This is a message important not just in a comparative context. It must also be heeded by those in India who have, especially in recent months, tried to work up a mood of anti-politics. The unprecedented turnouts in this round are a direct snub to those feverish exertions.
This is a moment to congratulate the Election Commission. As it ensured that voters’ slips are made easily available, relaxed norms related to access to polling booths, campaigned to enrol the new voter, and kept a strict vigil on expenditure and law-and-order in the poll-going states, the EC was a reassuring presence. It has sealed its formidable reputation as a neutral arbiter.

http://www.indianexpress.com/news/one-verdict-is-in/920526/0

Breakthrough in Nepal




Nepal's political transition has entered its final lap, with all parties signing a major peace agreement on November 1. The deal settles the future of combatants of the Maoist People's Liberation Army (PLA), who have been in cantonments across the country for over four years. A maximum of 6,500 of the 19,602 former fighters will be integrated into a special directorate under the Nepal Army. The rest would be offered attractive rehabilitation and cash packages. There is also an informal understanding that once the peace process commences, opposition parties would join the present government to give it an inclusive character. Once the constitution is promulgated, a new government under the Nepali Congress (NC) will supervise the next elections. The pact removes the single biggest obstacle in the process of constitution writing, as non-Maoist parties had refused to resolve the constitutional issues until what they saw as a Maoist instrument of coercion was not disbanded. Now that the Maoists have agreed to surrender their ‘advantage', the other parties can no longer cry wolf about the absence of a level playing field.
The breakthrough was made possible by the coming together of the original set of actors, primarily the Maoists and the NC, who had conceptualised the peace process in its early days. Maoist Chairman Prachanda and Prime Minister Baburam Bhattarai did well in standing up to pressure from dogmatists within the party, and being flexible on the modality of integration, norms, and ranks. The NC also deserves credit for not playing spoiler despite being in the opposition. India, which facilitated the 12-point agreement in 2005, played a constructive role as a non-partisan, behind-the-scenes interlocutor. There are two key challenges now. The first is implementing the agreement within the tight timelines that have been laid out. The parties have committed themselves to completing the regrouping of combatants into those to be integrated and rehabilitated by the third week of November, and preparing a draft constitution by November 30. This would enable another extension of the CA. The second is resolving constitutional issues, particularly the nature and shape of federalism. A longer term challenge is the democratisation of the Nepal Army, meaning institutionalising both civilian control and the respect for human rights. This goal was a part of the original peace agreement but has not been touched in the recent pact. Nepal's politicians have shown remarkable wisdom in shepherding the transformation of their country from a monarchy to a republic, from war to peace. In this final phase, they must direct all their energies towards writing a democratic, socially equitable, and federal constitution.
Keywords: Nepal politics, Nepal Maoists, Prachanda, Baburam Bhattarai http://www.thehindu.com/opinion/editorial/article2607181.ece

Putin Returns




Putin Returns

He should try the path of reform now, for the sake of his legacy



    Defying critics, Vladimir Putin won his third term as the president of Russia after a gap of four years. Putin’s return will mark continuity from New Delhi’s point of view. Even as prime minister during the last term, he held the effective reins of power. But his return to the Kremlin has hardly been smooth sailing. Whether it will lead to stability in Russia’s managed democracy, remains to be seen. Trouble started last year when the Russian strongman publicly announced his intention to swap places with outgoing president Dmitry Medvedev. With pro-democracy movements in the Arab world going on at the same time, the brazenness of the declaration riled the Russian public. Things went from bad to worse during the parliamentary elections in December. Marred by widespread allegations of vote rigging, Putin’s popularity took a plunge as protests against him intensified. 
    Against this backdrop, Russia’s presidential poll results can be read in two ways. First, the popular protests against Putin are being led by the 
disenchanted urban middle class. A decade of economic growth, fuelled mainly by gas and oil revenues, has also led to its growth in numbers. This in turn has heightened expectations of long-pending governance reforms. But Putin’s core constituency continues to be the working class in Russia’s hinterland. Indebted to Putin for pulling them out of the economic doldrums of the 1990s, as long as they have a stake in Russia’s managed democracy, Putin has nothing to worry about. 
    But the realities that face Putin today are 
very different from the last time he was in office. Europe, Russia’s largest energy export market, is in slowdown mode. Increase in energy prices comparable to the last decade is not assured. Failure to diversify the Russian economy will hurt Russians across the board, making it difficult to put a lid on popular frustrations. In such a scenario, Putin can’t continue with the old style of functioning. Along with initiating genuine political reforms, he must break the hold of the wealthy oligarchs and take on the crony capitalism that plagues Russian society. 
    This might appear counter-intuitive to Putin, but strong-arm tactics to maintain political stability are no longer feasible. Trying to muzzle popular protests in the era of growing internet penetration is subject to diminishing returns. Russia needs a new social contract between its people and the government. As Putin begins his third term, he must start thinking of his legacy. If he wants to be remembered as Russia’s saviour, he must push reforms now.

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Long-Term Gain





Long-Term Gain

Canad

a’s pension funds are a great model for India to learn from



    India’s pension funds should learn from Canada’s biggest public pension fund groups. The largest four have corpuses that range between $55 billion and $157 billion each and deliver returns that range between 12% and 14.5% annually. Though impressive, these numbers are not their most remarkable features. Unlike other funds, the Canadian funds do much of their investing themselves, rather than outsource the job, paying steep fees. A private equity fund can charge as much as 2% of assets and 20% of profits to run other people’s money. Hiring and retaining employees with the same skills is less costly. The Canadian funds can afford to invest longterm: so, along with highly-liquid equities, they also go for big bets in real estate, overseas utilities and the railway service through the Channel tunnel. They also partfund big-ticket leveraged buyouts of companies. They hold such assets for long periods — 10 years is not unusual — unlike mutual funds, whose holding horizons are determined by redemption pressures. To attract talent, these funds recruit professionals, paying them a base salary, annual bonus and a long-term performance award, which constitutes the largest chunk of the payout. This structure helps nurture a culture of optimising returns over the long term, instead of looking for quick trades. 
India’s largest pension fund, the Employees’ Provident Fund Organisation, run by a Union-dominated board of trustees, struggles to get a positive real return primarily because it refuses to invest in any asset class beyond sovereign debt. Its alternative and potential substitute, the National Pension System, too does not go beyond equity and debt. These pension funds and their regulator have much to learn from the Canadian example. Why shouldn’t they fund big-ticket projects directly, own power projects or a section of the Delhi-Mumbai Industrial Corridor? These investments are less liquid than stocks in the short run, but can yield massive payoffs in the long term. India’s fund managers and regulators have much to learn from the structure of compensation at Canadian pension funds as well. Linking reward to long-term risk is something they seem to have mastered.

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I'm still able to hope

Monday, February 27, 2012



Ten years have passed since a blistering storm of hate in Gujarat extinguished more than 2,000 lives, and destroyed countless more. It was a moment which altered the course of innumerable lives, including even my own.
I look back on those years with sorrow, with anger, but still also with hope. Ten years ago as a serving officer, I wrote of my anguish at the sheer cruelty of the slaughter in Gujarat, the complicity of my then colleagues in the civil and police administration in the massacre, the refusal of the state to even establish relief camps, and the blinding social and political climate of hate.

Today much of that grief persists, because of the many great failures of these 10 years after the massacre: the profound social failures of reconciliation and forgiveness; the legal failures of justice; and the political failures of democratic accountability. Those responsible for mass crimes and continuing persecution of minorities stand unpunished and defiant. I mourn also that leaders of industry, political parties, even social movements, celebrate the administration in Gujarat. They claim that the ‘bigger picture’ is of economic growth, administrative efficiency and alleged financial probity, rendering insignificant the ‘smaller picture’ of mere massacre and profiling.
I have not met a single survivor who has been able to regain the levels of living which they enjoyed before the carnage. Memories of how life was before the storm haunt them each day; of all that they lost that can never be reclaimed. Around half the 200,000 people who fled murderous mobs and burning homes 10 years ago can never return to the lands of their birth. Entire villages have been ‘cleansed’ of their erstwhile Muslim residents.
Around 30,000 persons subsist in small bare tenements in relief colonies built by mainly Muslim organisations as temporary settlements of refuge, but now their permanent homes. Others who could afford it have moved into the safety of numbers in crowded Muslim ghettoes. They were forced to sell their lands and properties at distress rates to their Hindu neighbours. The state remains openly hostile to these Muslim settlements, and discriminates in basic public services like drinking water, roads, electrification and sewerage.
For those who could return to their homes, life after the storm is one of segregation, isolation and penury. They live as second-class citizens, shunned by their neighbours. They are no longer welcome at weddings and funerals. People employ them only when there is no one else available. And yet, such is the resilience of the human spirit, that although they suffer hate, injustice, betrayal and loss, they still soldier on. The ache is always there, but survivors immerse themselves in the simple struggles of everyday living.
Their wounds could heal with demonstrations of remorse and justice. But the original slaughter is matched by the determination — sustained for 10 years — of both the state and their neighbours to block the efforts of the victimised people to rebuild their old lives; to refuse to express regret; and to strenuously subvert justice. Chief minister Narendra Modi refuses — even risking his political future — to apologise even once for the carnage. The only men in khaki who are punished by the state government are those who bravely strive for justice.
A widow has petitioned the highest court of the land to prosecute the CM for complicity in slaying her husband. A police officer testifies that the CM instructed his officers that the mass violence should be permitted to continue. Just the fact that the massacre and arson persisted for many days, even weeks, is in itself complete evidence, proving beyond doubt the complicity of the state at the highest levels. I have observed and handled many communal riots in my years as a civil servant, and I am certain that no riot can continue even beyond a few hours unless the political and administrative leadership wants that it should continue. And there are few crimes as great as to betray one’s duty to protect people from violence targeted at them only because of their identity.
Many of us have stood these many years in solidarity with the survivors who choose to fight for justice in the country’s courts. Even so, most criminal cases eventually collapse, and the men charged with rape, arson and mass murder walk free. Impunity remains the norm in communal violence. Police investigations are artfully slipshod, public prosecutors behave more like defence attorneys, witnesses and complainants are openly intimidated and coerced sometimes even in the corridors of the courts, and judges often do not hide their sympathies for the accused.
On the other hand, for nine of the 10 years since the train burned in Godhra, the men charged with setting the compartment ablaze languished in jail, until they were finally acquitted because there was no evidence against them, even by the much looser standards of anti-terror laws. Freed after incarceration for nine years for no crime, their families, their lives, their spirit are permanently destroyed. Perhaps they were more fortunate than those who were killed in fake police encounters, including a 19-year-old girl.
Yet I am still able to hope more than I did those 10 years ago. Few expected them to do so, but the people of this country have shown the wisdom and humanity to reject the politics of hate nationally, although they did not in Gujarat. Even during the carnage, many more people saved lives than those who took them. Gujarat abounds with heroes. Police officers, journalists, writers, artistes, judges at every level, and peace and justice workers, have fought hatred and injustice incessantly these 10 years. And most of them do not belong to the community which was targeted. Each stood tall, often at great personal cost, bravely defending our Constitution and our collective humanity.
It is because of them that I still hope. Harsh Mander is director, Centre for Equity Studies. The views expressed by the author are personal.

The same old show



There is surely a smidgen of irony in the fact that an industry that sells entertainment, whose very name conjures up entertainment, cannot bring itself to make its annual awards show more entertaining. Hollywood's ritual of self-congratulation, otherwise known as the Oscar awards, has become the most boring show on the planet. This isn't about the low-rent stand-up-comedy patter that kicks off the evening, a clutch of insider jokes carefully calibrated so as to not really offend anyone in attendance. This is a harmless enough crime. The real offence is in the utter predictability of the prizes. Sitting through the three-and-a-half hours leading to the announcement for Best Picture has begun to feel like going through a 1000-page book when someone's already revealed the ending. Was anyone really surprised when The Artist, a slight but charming ode not just to silent cinema but to Hollywood itself, left its competition in the dust with five wins? (It won Best Picture, Actor, Director, Costume Design and Musical Score. Martin Scorsese's much-lauded Hugo, also harking back to silent cinema, equalled this count, but with a string of less-prestigious awards in the technical categories, including Best Cinematography and Visual Effects).
The problem lies with the interminable stretch of honours announced in what has come to be known as “awards season.” First, the various critics' circles, like the National Board of Review, have their ceremonies. By the end of these announcements, there is already some sense of consensus, and this is only confirmed by the Golden Globes (awarded by the Hollywood Foreign Press Association) and the BAFTAs (the British Academy of Film and Television Arts). And what the Academy of Motion Picture Arts and Sciences do, essentially, is stamp their seal of approval on these awards. About the only award that quivered with an iota of suspense was the one for Best Actress, where Viola Davis was expected to win for The Help. (Meryl Streep won, instead, forThe Iron Lady.) Otherwise, it would have made no difference if they'd announced the list of winners earlier and the show had simply focused on their showing up to collect the trophies. Stifling one of many yawns, several viewers no doubt looked back fondly at the time Shakespeare in Love came out of nowhere to snatch the Best Picture trophy seen as belonging to Saving Private Ryan, or when Marisa Tomei won Best Supporting Actress for her flamboyantly comic turn in My Cousin Vinny, beating such luminaries as Vanessa Redgrave and Judy Davis. Were these upsets deserved? Perhaps not. But no one will deny that they made a stodgy evening a lot more interesting.
Keywords: Oscar awards, Hollywood, presentation ceremony, Golden Globes, BAFTAs
http://www.thehindu.com/opinion/editorial/article2939322.ece

Back to backchannel




Resumption of talks with Islamabad is welcome, even more so given Pakistan’s instability
Prime Minister Manmohan Singh’s go-ahead to the resumption of backchannel talks with Pakistan is a welcome step in the right direction. As this newspaper reported, India’s Satinder Lambah and former Foreign Secretary of Pakistan Riaz Mohammed Khan have met once over the last few months and are in regular contact. Pakistan’s civilian government and Prime Minister Yousuf Raza Gilani have been pitching for talks for a year. These talks were designed with Kashmir in mind and, this time, too, the envoys from the two sides will discuss primarily Kashmir in addition to other bilateral matters. The backchannel talks played a very important role in India-Pakistan diplomacy during the Musharraf years. As a leaked US diplomatic cable revealed last September, the two countries were close to reaching a “non-territorial solution” to Kashmir, which would allow freedom of movement and trade.
Even now, India would like an acknowledgment from the Pakistani side of the understanding reached under former Pakistan President Pervez Musharraf and the progress made in bilateral relations then. However, not only had the backchannel talks been on hold after Musharraf’s exit — under a new government and a new army chief — but Islamabad is not keen on associating itself with that legacy today. But the talks, as Singh rightly believes, can do no harm. Rather, they can ease a lot of other issues, including the peace proposals discussed with Musharraf. As it happens, the Pakistani cabinet is scheduled to take its “final” decision on the negative list in trade with India on February 29. If trade were to open up, a whole new dimension of opportunities would be added to the relationship. Eventually, the backchannel diplomacy can help discuss Kashmir and Afghanistan too.
Nevertheless, patience is India’s great virtue in dealing with Pakistan and the backchannel conversation has to frame itself within its own opportunities and limitations. While New Delhi has doubts about the Pakistan military’s interest in and support for the civilian government’s agenda, the primary problem is the uncertainty about what is happening in Pakistan. With Gilani’s troubles with the supreme court and the military, the question of the civilian government’s survival casts a shadow over everything else. But that instability and unpredictability are all the more reason India should establish as many lines of communication with Pakistan as possible.

Mine, All Mine




A merger is Anil Agarwal’s first step to creating a resource giant of global size



    Anil Agarwal-controlled Sesa Goa, India’s largest exporter of iron ore, will absorb another group company, Sterlite, in an all-share transaction. Sterlite shareholders are happy: giving up five shares of Sterlite for three shares of Sesa Goa makes them richer by . 30, on a 52-week average price. London-listed Vedanta will transfer its 38.8% stake in oil producer Cairn India as well as its debt of $5.9 billion for $1 to Sesa Sterlite. This will slash debt on Vedanta’s books, and earn it some brownie points from rating agencies. The combined debt of the group hit $9.65 billion after the near-$9 billion acquisition of Cairn’s India assets. With better ratings, Vedanta’s borrowing costs overseas could fall: the company reckons that the merger will save it about $200 million a year. Sesa Sterlite will be listed in India and the NYSE, becoming the world’s seventh-largest minerals and metals player, with a 58.9% holding in Cairn. Unlike group company Vedanta Aluminium, Cairn has strong cash flows, and after the restructuring, it can raise low-cost loans on behalf of the parent. Agarwal says that Sesa Sterlite will become the main vehicle for future acquisitions as he tries to take the group to the league of companies like Brazil’s Vale, Australia’s BHP Billiton, et al. 
Agarwal believes, correctly, that a metal-only company can be subject to massive global shocks, the likes of which forced Vale to diversify into coal and other minerals. The purchase of Cairn’s oil assets allowed Vedanta to diversify away from aluminium, copper and zinc. It is also trying to enter the coal business, now reserved for government, except for some captive mines. We have argued against both state monopoly and captive mining, and, instead, for opening up the coal sector to competition. These policy changes, along with a transparent system of auctioning mining leases and compensating people affected by mining, will boost the efficiency of India’s resources sector. With proper rules, specialised prospecting and mining companies will enter India, and the government must make sure they act in an environmentally-responsible manner. Then, we shall have national champions in the resources sector.

National Shame



Police and authorities need to get serious about rape, instead of blaming the victim



    Shocking instances of rape continue to hit the headlines, along with the tendency of police and administrators to blame the victim. The two trends reinforce each other. If the system gives the rapist a reasonable chance to get away with his crime, then it is unable to deter rape. The epidemic of rape incidents across the country once again draws attention to the urgent need to transform our legal and police systems. Five men raped a 17-year-old girl in a moving car in Noida last Friday, while earlier this month a 37-year-old mother of two was raped in the heart of Kolkata’s upscale Park Street. Another woman has been gangraped trying to resist dacoits looting passengers of a local train in West Bengal’s Burdwan district. UP witnesses at least two rapes every day. 
    What gives cause for dismay is the police’s cavalier attitude towards victims. More often than not, traumatised victims have to battle law enforcers’ social and gender prejudices, manifest in loaded comments about the victims’ moral character and lifestyle. While the police, and even Bengal’s transport minister, made humiliating and suggestive 
remarks about the Park Street rape victim’s late-night pub drinking, the Noida police made insinuating comments about the minor victim. Worse still, in a complete breach of protocol, the police revealed the victim’s name and address to the media. 
    Given this sweeping gender bias and insensitivity, victims are more often than not reluctant to seek police intervention – making it easy for the rapist to get away. Police and political authorities across the country need to start treating rape as a heinous 
crime, and put in place some serious deterrents. A start can be made by instituting a fair number of dedicated rape cells, staffed mainly by policewomen. Victims would find it easier to share information with women officers, rather than be interrogated by their male counterparts. Additionally, gender sensitisation must be a part of police training itself. 
    It must be stressed here that the answer is not more legislation that merely scales up the quantum of punishment. The answer, rather, is to give teeth to the law by enforcing it. Let’s not forget that conviction rate of crimes against women, despite many legislative amendments, is still a depressing 27% for rape and molestation. Reforming police and judicial procedures in ways that allow speedy and consistent enforcement of existing laws, will go a long way towards assuring justice to victims and deterring further crimes against women.

Engage, don't vilify

Sunday, February 26, 2012



Prime Minister Manmohan Singh's remarks about foreign-funded NGOs stalling the introduction of genetically modified food and the commissioning of the Kudankulam nuclear power project are bound to be taken seriously by his supporters and detractors alike. For, they do not merely represent an uncharacteristic venture by him into controversial territory, but may indicate his government's growing frustration over its plans running into fierce ideological opposition. When Dr. Singh, who has a reputation for reticence on sensitive subjects, drops dark hints about a foreign hand, it is surely something that needs to be substantiated and, if necessary, followed up with action. As if to bolster his argument, the licences of three NGOs have been cancelled and the foreign remittances received by them are being investigated. Meanwhile, the People's Movement Against Nuclear Energy, the organisation spearheading the anti-Kudankulam protests, has rejected the charge and demanded the Prime Minister substantiate his remarks. Adding to the mix, Jairam Ramesh has also clarified that his decision as Environment Minister in 2010 to place a moratorium on Bt Brinjal was not influenced by NGOs, but was based on objective factors.
Dr. Singh cannot be faulted for his view that science and technology should serve as instruments for raising the standard of living of the people, and it is entirely understandable that he wants everyone, including his critics, to appreciate the development challenges faced by India and its energy requirements. At a time when agriculture badly needs infusion of technology and when a chronic power shortage is crippling economic activity in States such as Tamil Nadu, it is hardly surprising that the government looks at all opposition to genetic engineering and nuclear power as suspect. However, the idea that NGOs with ‘foreign' links are fuelling the protests seems more expedient than convincing. The charge is also, at some level, quite irrelevant. For what it's worth, tens of thousands of ordinary Indians around Kudankulam, Jaitapur and other areas where reactors will be sited are apprehensive about what the placement of large nuclear installations in their backyard might mean for their health, environment and livelihood. The government needs to engage with them in a transparent and constructive manner and allay their fears with facts and arguments rather than innuendo and slander. The same is true for those sections of the farming and scientific communities who want a careful review of the consequences of genetic engineering before its indiscriminate adoption in the country. Their concerns are best answered by science and reason, not the implied threat of a midnight knock.

The mood’s different




Any discussion on the Godhra murders and the subsequent religious riots that engulfed Gujarat beginning this day 10 years ago inevitably ends up becoming an argument over Narendra Modi. However, to be fair to Gujarat’s cataclysmic summer of 2002, and to the 1,044 people (790 Muslims and 254
Hindus) killed that year, it is necessary to look at the wider legacy of those events. This is not to defend or attack Modi; that is a separate issue and the subject of a separate, though not entirely unrelated, debate. The point is that it is important to see the broader implications of the Gujarat riots without necessarily reducing them to a slanging match over one individual.
Gujarat was not the first major religious riot in post-Partition India and not the worst either in terms of human loss. Why then does it stand out and why are its memories so marked? Why is the perception that Gujarat 2002 was singularly abominable — which in comparison to previous and similar events it was not — so difficult to erase? Indeed which are the forces that have made Gujarat bigger than previous such infractions — and, paradoxically, do they carry the potential to ensure that Gujarat 2002 is also India’s last major riot?
Three features of Gujarat 2002 are worth noting. First, the degree of popular participation was remarkably high. Religious riots, as any police officer from Malegaon to Maliana will tell you, usually involve a minuscule percentage of the population. In the three days after February 27, Gujarat police officers told this writer in 2002 that — and they were citing FIRs and plain surmise — two million people came out on the streets.
Gujarat had a population of 50 million in 2002: 88% Hindu, 9% Muslim. Of this 32 million were voters and aged above 18. As such 4% of the populace and over 6% of all adults were riot participants. In purely numerical, value-neutral terms, this would constitute a mass movement. The degree of social approbation for the events that followed the Godhra train massacre was significant. It can’t be explained as merely the act of a small core of masterminds.
Second, Gujarat 2002 was an anachronism, a 20th century riot in 21st century India. In its narrative and its mobilisation techniques it was no different from the riots of, say, Calcutta (1964), Ahmedabad itself (1969), Bhagalpur (1989) and Bombay (1993). In its background — the sedulous radicalisation of sections of Muslims, the conversion of underworld figures who happened to be Muslim into Islamist warriors, the transformation of Hindutva from a political idea into an ugly and unwholesome street phenomenon that habitually challenged the law — Gujarat 2002 encapsulated so much of the wrenching emotionalism of the mid-1980s and early-90s.
Yet it was also a phenomenon past its time. Gujarat represented an autarkic economy riot in the era of globalisation. In the past 10 years, Modi and his government have made adroit use of the opportunities of globalisation, and turned Gujarat into an extraordinary economic powerhouse. Ironically, they have also been impeded by another manifestation of global networking, one that uses the same tools and communication technologies as its business counterpart — the globalisation of causes and concerns, of protest and activism and ultimately of soft power.
Middle class attitudes are increasingly influenced by these aspects of globalisation. This has had one major consequence: a declining tolerance for violence in the very urban centres that saw the worst religious riots 25 years ago. If there are still fears about jihadist terrorism and national security, these flow more from their ability to interrupt India’s economic treadmill. The propellant is no longer raw emotion, or prejudice for the sake of prejudice. There is a growing sense that direct action cannot be a substitute for strict law enforcement.
As an economy attains critical mass, it transcends adventurism, real or even rhetorical. This is often the basis of political conservatism. After 2002, middle India crossed that inflection point.
Combined with this creeping economic hard-headedness is the presence of an over-intrusive media, Indian and global. This has meant that aberrations are suicidal. For instance, the political cost of a riot has gone up prohibitively; especially following 9/11, any juxtaposition of the phenomena ‘religion’ and ‘violence’ is unlikely to be viewed benignly. The media shows — maybe overstates — horrific pictures, builds revulsion and invites international pressure. Gujarat 2002 is a case in point. It is a ‘victim’ of globalisation, almost as much as Gujarat 2012 — the economic success story — is a ‘creature’ of globalisation.
Third, at the end of 2002, Gujarat saw an assembly election that was compelling but also disturbing. It reflected a polarised society and the BJP exploited this mood. It was reminiscent of the Congress election advertisements of 1984, which too sought to demonise the ‘other’ and scare voters into backing the party.
While this is undeniable, it is equally true that — despite what Modi’s opponents may contend — that degree of polarisation is no longer present in Gujarat. The state has moved on, and to say this in no way mitigates the need to deliver justice to those who died in 2002 or to punish their killers. It also leaves us with the hope that Gujarat — and India — are done with blockbuster religious riots for good.

First past the boast


Cong threatens President’s rule in UP if it doesn’t get the numbers. Who is it trying to impress?
Of course, Union minister Sriprakash Jaiswal isn’t deluded into believing Congress will get 200-plus seats and form the next government in Lucknow, to hell with everybody else. So when he suggests the Congress will form the government in Uttar Pradesh or it will be Congress rule by other means — that is, President’s rule — it’s more than macho polltalk. His colleague and general secretary in charge of UP, Digvijaya Singh, said the same thing earlier. Taken together, both statements point to a peculiarly Congress syndrome. While India’s politics has transformed in the last two decades, opening up to new players and becoming more competitive, the Grand Old Party, now under the leadership of the Angry Young Man, remains resolutely frozen in a long-ago political moment. Incredibly enough, it appears to have gone through the motions of alliance-making since 2004 when Sonia Gandhi first reached out a hand to allies in the run-up to Lok Sabha polls, without learning the realism or the humility necessary to that process. Even after running a coalition at the Centre for nearly eight long years, it’s yet to unlearn the art of alienating friends and antagonising possible allies.
As UP winds its way towards the end of its seven-phase poll process, the dominant common sense points to a close contest, if not a hung verdict. In that scenario, government formation would necessarily require parties to join hands and participate in a process of give-and-take — not at all an unusual compulsion in a state where the last government was the first in nearly two decades to achieve a clear majority. Statements such as those made by Messrs Singh and Jaiswal do not just threaten to queer their party’s pitch, they also resonate unhappily among the Congress’s restive allies at the Centre.
The Trinamool Congress, for one, has complained loudly about not being consulted by its senior partner in major decisions and policies of UPA 2. The DMK is also easily cast in the role of the resentful ally. For both regional parties, such loose talk of President’s rule would only confirm their worst fears about Congress arrogance. Be it UP or at Centre, and if only for reasons of political correctness, the Congress needs to acknowledge that the days it could brandish President’s rule as a means to subdue opponents, or to get the better of a difficult situation, are long past. It pays to be humble a week before the verdict.

Bravo, MCX!



Bravo, MCX!

The bourse’s public issue success holds out three positive messages



    The initial public offering (IPO) from the country’s largest commodity exchange by volume has been a huge success, by conventional standards, having been oversubscribed 54 times. It does credit to MCX and its promoters, who found the courage to go ahead with the IPO in a climate that many have found forbidding. It sends out a positive message on three different counts. One, it should encourage other companies that have been holding back on their public issue plans. The lesson from MCX’s success is clear: if your company and the price at which you are offering it to investors together create a value proposition, investors would lap it up, regardless of the immediate sentiment in the market. Two, the government should shed its diffidence over its divestment plans. Not only ONGC but other state-owned companies that have been under consideration for disinvestment are likely to be welcomed by investors, at the right price. Three, exchanges are eminently suited for listing. There is an archaic view, which got a boost from the Bimal Jalan committee report on ownership and governance of market infrastructure institutions, that bourses are natural monopolies and should not be listed. Now, MCX is a commodity exchange and not a stock exchange. As such, its IPO leading to its listing does not, by itself, repudiate the Jalan committee view that as a first-level regulator and a public utility, a stock exchange should seek ‘reasonable profits’ and not behave in the conventional profit-maximising mode of listed businesses. Since banks, which are part of the payments system and perform a public utility function, only gain by virtue of being listed, competing businesses, there is no reason to believe otherwise about stock exchanges. The MCX public issue does strengthen the view that exchanges are businesses in a space open to contestation that does not, aided and guided as it is by regulation, minimise public welfare. 
The extent of oversubscription of the issue suggests the issue was underpriced. This is not a great result for the issuer, even if good for the investor. Other issuers can try to avoid this flaw that many overlook while celebrating oversubscription of a public issue.

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