CONTENTS
Better than Bali But No Victory
Dr. Ashwani Mahajan
The Great Indian Loot EDITOR ...... Shivaji Sarkar
PRINTED AND PUBLISHED BY: Ishwardas Mahajan on behalf of Swadeshi Black money debate degenerating into a farce? Jagaran Samiti, 'Dharmakshetra', Sector-8, ...... M.R. Venkatesh R.K. Puram, New Delhi-22,
COVER & PAGE DESIGNING Implement Swadeshi Model of Development ...... Anil Javalekar EDITORIAL OFFICE 'Dharmakshetra' Sector-8, Babu Genu Marg. R.K. Puram, N. D.-22 Integral Humanism: In the Age of Civilisations E-MAIL : [email protected] ...... Vikramjit Banerjee WEBSITE : www.swadeshionline.in
Beyond WTO ...... Bharat Jhunjhunwala
20. The two plans: A Book by Pt. Deendayal Upadyay Re-launched 21. Dattopant Thengadi Memorial Lecture 23. Babu Genu: A Tribute to a Swadeshi Martyr
Unnat Gaon - Unnat Bharat ...... Sanjay Ganjoo
India Should Leverage the Tectonic Shift in the Global Economic Order ...... Prof. R Vaidyanathan
The Freedom Movement (Untold stories) ...... Saroj Mitra Letters Swachch Bharat Abhiyan Quote-Unquote There is no doubt that the Swachch Bharat Abhiyan has a huge potential to change the landscape and fortunes of India on the global map. The campaign has been rightly started with much fanfare by the most popular Prime Minister ever. This has given a sense of dignity; much needed priority focus and urgency to take the clean India drive more seriously. For too long we as a country have ignored this aspect of civil life. The western life style depicted by its use and throw mentality has added to the amount of garbage being generated daily in particular the solid waste. These heaps of garbage can be seen everywhere. Urbanisation and its consequen- tial implication also adds to this problem. Hence the clean India project will face many hurdles in various forms. Clean India will face the sheer challenge of the Indian mentality which considers roads and neighbouring areas as dustbins. There is also chemical and electronic waste which is becoming a major concern. The growing pollution of our rivers, some of which we consider as sacred and deify, too is a matter of shame. The Government cannot do everything on its own, as it has to be supported by intent and action on the ground by all of us. We will have to think beyond our homes and make our streets, roads, villages and cities clean to craft a better India. Dr. Mohan Bhagwat The Government can at best run an awareness campaign with regular frequency so that the Sar Sanghchalak, RSS issue remains high in the minds of the people. Every Indian has to realize that "Our waste is our responsibility" and we have to dispose it in an appropriate manner. – Govind Ram, Noida Kisan Vikas Patra relaunched Kisan Vikas Patra ( KVP), a very popular and trusted saving scheme has been re launched. It was in vogue for a long time and was contributing significantly to the strengthening of economy in a major way. However, it was stopped in 2011 for unknown reasons. If the money laundering was the reason to withdraw it as is being alleged by Congress Party spokesperson, then Participatory Notes ( PN) are more than qualified to be stopped.KVP was an easily available option for poor Indians contributed to national savings in a big way. Naturally its withdrawal also had adverse impact on the savings rate in the country, which fell Narendra Modi from 36.8 per cent to 30 per cent in last 2-3 years. KVP is highly beneficial to the low income Prime Minister of India group people who will be able to save in smaller denominations. The most important benefit to the depositors will be that their money will be safe with the Government and they can also withdraw part of if after 30 months. In that sense fake and cheating finance companies will fade away in due course of time. While the depositor gets interest on his money, he will also be helping the state in widening its scope of expansion in developmental projects. It has to be said that Gross collections under the scheme in the year 2010-11 stood at Rs 21,631.16 crore which was 9 per cent of the total gross collections during the year. – Krishan Kumar, Jammu EDITORIAL OFFICE SWADESHI PATRIKA ‘Dharmakshetra’, Sector-8, Rama Krishna Puram, New Delhi-22 Tel. : 26184595, E-Mail: [email protected] For subscription please send payment by A/c payee Cheque/Demand Draft/ Michael Grant Money Order in favour of ‘Swadeshi Patrika’ at New Delhi, or Canadian envoy to UN Deposit the subscription amount in Bank of India A/C No. 602510110002740, IFSC: BKID 0006025 (Ramakrishnapuram) Annual Subscription: 150/- Life Membership: 1500/- Kindly write your full name and address in capital letters. If you do not receive any issue of Swadeshi Patrika, kindly e-mail us immediately.
Hamid Karzai President of Afghanistan 2 E
D The Indo-US 'breakthrough' agreement on stockpiling of food grains has resulted in the adoption of a major and the only multilateral trade deal in 19-year history of WTO. The Trade Facilitation Agreement I (TFA) was being pushed by the US led developed nations to reinforce their slumped economies through unhindered international trade by way of a uniform and easy procedures at customs. Lowering trade barriers, T decreasing import tariffs and eliminating agricultural subsidies in poor & developing countries are some aspects of these efforts to access vast markets of the developing world. Global civil society including SJM opposed this Corporate-driven model because of the risks involved in a binding TFA for the developing O countries. They pleaded to more accurately rename it as "import-facilitating rules" for developing countries TFA, largely agreed upon in Bali last year by the then UPA government in spite of stiff resistance by R stakeholders was blocked by The Narendra Modi-led BJP government. The new regime refused to sign it without a permanent solution to the food subsidy issue. One of the bones of contention is the rule that I caps subsidies to farmers at 10 per cent of the total historical value of farm production. This stipulation - as is articulated at the WTO - undermines the responsibility of developing countries to feed their poor. India and some others have also questioned the methodology of arriving at such a subsidy cap. Under the A new pact, India has approved global agreement on streamlining customs rules. In return US will give an open-ended commitment to protect India's food subsidy programme from legal challenges over exports L of surplus grain stocks accumulated in government warehouses. The deal with the U.S. now provides for an indefinite peace clause until a permanent solution is found to the farm subsidy issue. The deal is being projected as a victory of the Modi government's assertion of national interest while being flexible on modalities. According to some deceptive estimates projected by proponents of the TFA, it could add $1 trillion in new trade globally and create 20 million new jobs worldwide. This is widely contested as there is little empirical basis for this claim. On the contrary there are enough of studies which may vary from one another in several aspects but are unanimous on the conclusion that CGE models of trade liberalization offer 'a penny per person per day in some variants, and as little as one quarter of a penny from some forecasts of the likely effects of the Doha round'. Consequentially the effects of trade liberalization on global poverty turn out to be much less than originally advertised. But the apologists, who were criticizing this government for being irrational, are again appreciating US for the reasonable response once India's stand and its concern over the implications for food security were explained clearly to that country. TFA has now become a reality, but it is essential to publically debate all aspects of TFA including the money that India will have to spend to develop required infrastructure. In December 2013, WTO members concluded negotiations on TFA. The Agreement will enter into force once two-thirds of members have completed their domestic ratification process. Commerce and Industry Minister Nirmala Sitharaman had earlier stated that "this government has been very consistent in saying that we don't consider the Bali round agreement very fair when it comes to public stockholding". The fact remains that TFA in its present form follows Corporate-driven globalization model focused on increasing the volume of trade, rather than achieving globally-shared development goals. The costs of a TF agreement like implementation, regulatory, human resources, and infrastructure costs associated with it, many of which are recurring, and would be siphoned from national budgets, diverting available resources from development also need to be calculated and discussed. TFA is also expected to lead to irreplaceable loss of tariff revenue. Compared to developed countries, the share of customs revenue in the total tax collection is much higher in developing countries and Least Developed Countries (LDCs). Foregone tariff revenue would have serious implications for national budgetary support for key development issues such as education, health, and poverty reduction. Reducing national budget support for addressing the Millennium Development Goals can in no way be referred to as a pro-development outcome. Indo-US pact may enable the multilateral trade negotiations to move forward. Of course, the bilateral pact will have to be ratified by the WTO. but with the U.S. showing the way, other members would find it acceptable. It underscores once again the dominance of the U.S. in a multilateral global forum even while it is recognition of India's place in the global economic environment. Issue is the role and responsibility of India appropriately articulated by Our Prime Minister. Are we discharging our duty truthfully? 3 Better than Bali But No Victory
ot of activity is seen in international relations after Narendra Modi has taken over reign of power from UPA. First Nepal, and later China, Japan, LUSA and latest Australia visit of PM, indicate the fact that present regime is sincerely active towards better and more informed international relations. Apart from this we also witness government coming out of the shell of indifference, and is more conscious in approach, particularly with Pakistan and China. On the same lines, government seems to be more vigilant and proactive in context of international economic relations and has also been taking decisions and that too fast. Recent agreements with China, Japan, USA and host of other countries pertaining to economic cooperation have also been making headlines in the newspapers. In this context controversy between USA and India has been topic of discussion, particularly about ratification of Bali agreement on food subsidy. It is notable that before 9th Ministerial Conference of WTO, USA had objected to the quantum of food subsidy by India for ensuring food security. Developed countries have been exerting pressure on India to curtail food subsidy, so that it does not go beyond threshold limit of 10 percent of GDP and were threatening to take this issue to dispute settlement panel of WTO. Government then, was trying to ensure that there is no threat to the ‘game changer’ Food Security Act and therefore was not willing to cave into the demand of developed countries. After a series of meetings, persuasions, and diplomatic efforts, an agree- ment was reached whereby developed countries agreed not to raise any dispute for four years or till the permanent solution is reached. However later it was realised that agreement so reached was a deceptive one, and developed countries could raise depute after 4 years. Apart from this It is notable that deceptive agreement, there was yet another linked agreement on trade facilitation. trade deficit is According to this Trade Facilitation Agreement, there was a binding commitment exceeding 10 per to create infrastructure required to provide trade facilitation. cent of GDP, and After the new government took over strings of power, sensing that Trade the resulting Facilitation Agreement is beneficial for the developed world, it was a ripe time to payment crisis is get earlier agreement amended in India’s favour and thus it maintained that till India’s weakening the concern are not addressed, it will not accede to Trade Facilitation Agreement. rupee day by day. By providing trade facilitation, imports from the rest of the world may flood India, further worsening the already difficult external payment position, cautions Dr. Ashwani Mahajan. 4 Recently, USA agreed to ac- cept India’s concern partially by amending Bali Agreement, such that till a permanent solution is found, USA will not raise any dispute in WTO about food subsidy for present food security programme. This new agreement is being paint- ed as a big success of India’s eco- nomic diplomacy. It is notable that agreement reached by UPA’s Com- continue to prevail, there is a pro- tional trade-related hurdles with re- merce Minister was also painted vision of transparency, which un- gard to food security programme similarly as a victory, which was ambiguously states that it must have been removed, as developed later proved to be a farce. notify to the committee on agri- countries have agreed not to dis- Better than Bali but...... culture that it is exceeding or is at pute about support for public Though the present agreement risk of exceeding either or both stockholding of foodgrains for with USA is an improvement over of its aggregate measurement of food security exceeding the thresh- WTO, Bali Agreement, there are support (AMS) limits (the mem- old limit of 10 per cent of the to- many issues remaining which are ber’s bound total AMS or the dem- tal value of agricultural produce. not good for India. For instance inimus level) as a result of its pro- The agreement, reached after the present agreement does not grammes. The draft also mandates extending the conference by one include India’s concern over the that the committee on agriculture more day, states that, “In the inter- shall ‘monitor’ the information sub- im, until a permanent solution is calculation of subsidy. Present sys- mitted under this decision. This found, provided that the condi- tem, which is a part of the original implies that the country will have tions set out below are met, mem- agreement reached in WTO is an to admit year after year that it is bers shall refrain from challenging inequitable and unjust; and formula exceeding the threshold limit of through the WTO dispute settle- for calculating support for public support on public stockholding ment mechanism compliance of a stockholding for food security is for food security; and this infor- developing member with its obli- unreasonably loaded against the mation is subject to scrutiny by the gations under Articles 6.3 and developing countries, as the base member countries. 7.2(b) of the agreement of agri- year for pricing of food grains has The member countries, culture (AoA) in relation to sup- been pegged at 1986-1988 prices through a process of consultation, port provided for traditional sta- (25 years old prices). After 1988, will also have the right to ‘scrutin- ple food corps in pursuance of prices of foodgrains have gone up ise’ the food programmes of In- public stockholding programmes manifold and, therefore, it cannot dia, or for that matter other mem- for food security purposes exist- be accepted. If Government of ber countries and in case of any ing as of the date of this decision.” India pays Rupees 1400 per quin- breach, the same could be disput- It is notable that developed tal to farmers for procurement of ed. All these provisions of the countries were trying to pressure wheat, and price of wheat was agreement clearly indicate at a for- India to make further gains in Rupees 385 in 1986-88, then it eign eye on internal policy matters WTO negotiations by saying that would be assumed that govern- of India and also erosion of sov- India is giving more than the thresh- ment is giving subsidy of 1015 per ereignty of the country. old limit by way of support for quintal of wheat. Thus, there is a The Ninth Ministerial Confer- public food grain stockholding for need to change WTO rules. ence of WTO reached an agree- food security, against which they Foreign Eye on Internal Policy ment, which had been termed as a can raise disputes. Matters big victory for the then government. It was imperative for the gov- According to the arrange- The official version stated that by ernment not to buy that argument, ment agreed to in Bali, which will virtue of this agreement, interna- as the whole food security pro- 5 gramme under the much-celebrat- The final draft for agreement ing the rupee day by day. By pro- ed food security act would have as notified by WTO has a clear viding trade facilitation, imports been in doldrums. Even before the transparency clause, from the rest of the world may Bali conference, developed coun- flood India, further worsening the No New Food Programmes Pos- tries were ready to offer a peace sible already difficult external payment clause of four years, under which As per the draft, this peace position. they would not raise disputes even clause was to be be applicable only Further, several of the provi- if the support for public stock- to the existing food security pro- sions under negotiations could hold holding for the purpose of food grammes as of the date of this significant administrative and insti- security exceeds the threshold lim- decision. Further, this agreement tutional burdens on LDCs and other it of 10 per cent of the total value covered only agreement on agri- developing countries. Meeting the obligations, as proposed, is likely to of agriculture produce. culture (AoA), and not ASCM, involve significant cost for India and From the very beginning of without which the programme other developing countries. Apart the conference, the Indian delega- may be accused of impacting the from building huge infrastructure tion led by then commerce minis- export market, even if involuntari- (both soft and hard) including air- ter Anand Sharma was ‘firm’ on ly, and would be subject to dispute. the demand that this peace clause ports, sea ports, dedicated corridors is not acceptable to India. On De- Death of Doha Round and roads, it would also involve cember 5, in a press conference In the last five ministerial automation of customs system. It held at the convention premises in meetings, before Bali, though no is unfortunate that no cost assess- a fully packed hall with more than headway could be made on DDR, ment has been made by the gov- 500 media people, Anand Sharma but hopes were alive that the issue ernment about implementing the said that food security is non-ne- of unequal treatment for develop- provisions of trade facilitation. gotiable for India. ing countries and LDCs, leading to This is a fact that meeting this However, by the evening loss of international trade, would cost would mean a huge diversion December 5, after his meeting with be addressed. It is notable that of resources from public services the US trade representative on the developed countries give mam- such as health care, food security mediation of the Indonesian trade moth subsidies and there is a long- and education to customs admin- minister and probably a phone call standing demand of the develop- istration. by the Indonesian president to ing countries to reduce these sub- Defeat Persists then prime minister Manmohan sidies. However by agreeing to the Therefore the ‘victory’ claimed Singh (as per newspaper reports), peace clause — even though it is by the Indian delegation was actu- the scenario changed and the Indi- better phrased than the earlier one ally a ‘defeat’. This could at best an delegation softened its stand, offer by the developed countries be said to be a momentary gain leaving all its arguments with re- — India lost the momentum and for the UPA in overcoming possi- gard to unjust trade rules and gave pressure built in the last five minis- ble international trade dispute in consent to the final draft of the terial conferences. implementing the food security agreement, which extended the The final draft agreed in Bali programme, which was seen as an peace clause till a permanent solu- mandated developing countries to election gimmick to garner votes. tion is reached in exchange of ex- ensure various measures of trade However in reality, this agreement tending trade (read import facili- facilitation, which include efforts at had actually eroded sovereignty of tation), subject to fulfilling the con- simplifying border procedures (e.g. the nation, on the one hand, and ditions, set forth in the final draft, the modalities at the port), so that put a ceiling on the freedom of namely transparency, no new food exports from developed countries future regimes to announce any security programme, monitoring could enter developing countries such food security programme. and scrutiny of India’s food secu- conveniently, without hassles. It is Thus we can say that though there rity programme; and by the morn- notable that trade deficit is exceed- is some improvement from agree- ing of December 6, the draft was ing 10 per cent of GDP, and the ment reached at Bali, but major put on the website of WTO. resulting payment crisis is weaken- part of the defeat then persists. 6 FMCG cos have 142 per cent profit and are increasing prices The Great Indian Loot
t is open loot through the free pricing mechanism. The wages in India shrink; one pays more and buys less. Little is left in the pockets of an average wage- Iearner but the profits of the companies in the fast moving consumer goods (FMCG), milk, housing, pharmaceutical and other areas rise phenomenally. The lack of a social mechanism to check the process of fixing the prices is playing havoc with the economy and plight of the poor consumers. The companies are thriving by raising prices of every product as a new product batch enters the market. The FMCG companies like Hindustan Unilever (HUL), Colgate and Indian Tobacco Company (ITC) have raked in mean profit of 82.04 per cent during the past five years. Others like the Tata group are not much behind. Housing compa- nies have more than tripled the prices and have profits of over 60 to 80 per cent. The loser is the consumer and of course the government, as in most cases it is paid taxes at the base lowest prices. Wage increases have either been in the range of three per cent or remained stagnant. Free market does not mean free loot of the consumers. The myth spread by Manmohanics that nobody should interfere with the price-fixing mechanism of the producer is playing havoc. The cost and prices have little relationship. Inflation indices give an erroneous view. The recent ‘slump’ in wholesale and consumer indices does not indicate fall in prices. The indices indicate that after runaway inflation of over 44 – to 46 per cent during since 2009-10, the rate of increase has slowed over the already prevailing high prices. Not a commodity has become cheaper. Rather food items, vegetables – potato, tomato, and onion in- cluded, all other packed goods and items of everyday use have become costlier. Even milk prices determined by milk cooperatives like Mother Dairy and Amul have increased from Rs 12 to Rs 48 a litre though benefits to dairy farmers have not matched it. The Narendra Modi government having succeeded an inefficient and ineffec- tive regime has to do a lot to give succour to the people. It is needed to be done not only for economic reasons but also for social and political purposes. High prices
Free market does not mean free loot of the consumers. The myth spread by Manmohanics that nobody should interfere with the price-fixing mechanism of the producer is playing havoc, finds Shiva JI Sarkar 7 profit is seemingly their birth right. Colgate How much profit is realistic or eth- increased the ically should be there? The libera- lised economy does not have a prices of its yardstick. The socialist economy toothpaste meant either no profit or a realis- tic profit up to seven to eight per brands five to 13 cent, something even capitalist per cent. economy accepts. A study by Indian Journal of weaken not only the economy and cording to financial services com- Applied Research, Rajkot, by Alpa the currency but also the social fab- pany Edelweiss report, for the Lux Joshi (June 2013) finds that HUL, ric and leads to severe law and or- brand, the weight of a strawberry Colgate and ITC have a mean der issues. variant pack was reduced from profit after tax (PAT) of 82.04 per Another aspect often not 100 gm to 90 gm. Kolkata-based cent. Individualy, from 2008 to 2012, talked about is it robs the govern- Emami raised the price of its HUL profit varied from 87.2 to ment, the largest consumer, of Boroplus antiseptic cream 7.1 per 142.7 per cent; Colgate 104 to 156 sizeable revenues. This is the sur- cent, while Colgate increased the per cent; and ITC 15.7 to 18.7 per mise of a paper produced by Lok prices of its toothpaste brands five cent. Is not that exploitative? Sabha secretariat in Spetember to 13 per cent, respectively. Procter The FMCG sector creates em- 2013. It says, “The rising prices & Gamble increased the price of ployment for about 30 lakh people adversely affect the economic con- its Ariel detergent about five per mostly in low-paid jobs in down- ditions of fixed-income groups, cent. The company’s Head & stream activities. The total FMCG particularly wage earners. When Shoulders shampoo recorded a market is in excess of Rs 850 billion. prices are high, the value of mon- price rise of 5.1 per cent in De- Its wage bill is one of the lowest. ey is low and vice versa. There is cember 2012, said Edelweiss. The HUL has virtually taken over always a lag between price rise and Annually the prices are being many contenders to create a mo- money-wage adjustment. Poor raised in this manner and weight or nopoly and beat the competition. people in the unorganised sector volume is being reduced. The rise All these companies have pen- are hit the worst because their in- in prices, however, comes at a time, etrated different political parties to come is not linked with price in- Edelweiss says, when commodity sabotage policy-making. They have dex. However, business firms gain prices have been softening. “In the forced the UPA government to during price rise because the mon- last few months, the prices of key dismantle Monopolies and Restric- ey value of goods in their stock inputs palm oil and copra fell 30 tive Trade Practices Commission rises continually. and 20 per cent”, respectively. (MRTPC) and create a lame-duck “Inflation also encourages It is just not the private com- Competition Commission. hoarding of essential commodities, panies even public sector organi- The NDA government has to leading to speculation and genera- sations like railways or road trans- take a call on these widespread tion of black money”. In short, it port corporations are unethical in malpractices. The society has a role is defeating the objectives of the fixing fare and freight. They in- in checking the weird behaviour of NDA government. crease fare and freight on the pre- any of its sections. The corporate The companies have devised text of higher fuel prices but when sovereignty is not utilised when it novel ways to increase the prices. it comes down they never reduce comes to deliver social responsi- Companies such as Hindustan it. The railways have also raised fare bilities. It is used only for exploit- Unilever (HUL), India’s largest phenomenally through the so ing the society. All companies must FMCG company, raised prices of called ‘premium’ trains, run with be dealt with a heavy hand for ram- soap brands Lux and Rexona 11 rejected coaches. pant malpractices that has become and 16 per cent in the last six The private sector does not the rule and stop the phenomenal months of 2012, respectively. Ac- care for niceties. For them high loot. 8 Black money debate degenerating into a farce?
oneys parked in secret accounts in tax havens is not a mere tax evasion issue. M “It is respectfully submitted that due to increasing globalisation, it has be- come easier for taxpayers to make, hold and manage investments through finan- cial institutions outside of their country of residence. Therefore, vast amounts of money are kept offshore and go untaxed to the extent that tax payers fail to comply with tax obligations in their home country.” Now, this is not a lecturer of finance in High School pointing out to his student on the downsides of global financial architecture. Rather, this is the preliminary submission of Government of India in a Writ filed last week with the Hon’ble SC. It is apparent from this submission that the government views the issue of money parked in secret accounts in tax havens solely as tax issue; to be sorted out by the tax man through the tax laws. At the core of the misunderstanding of this issue is our inability to distin- guish between Black Money [where buccaneers have not paid tax on such in- come] and Red Money where the source of such income itself is illicit and hence the owners seek to secret the amounts for obvious reasons. Put pithily, the issue with Red Money is that it is invariably a by-product of drug running, illegal weapons sale, terror or corrupt money. Consequently, the owners seek to disassociate with the same fearing the penal consequence of such income and not – repeat not – taxes. Taxes is a minor irritant when it comes to Red Money. Therefore to club Red Money – the higher of the two evils – with Black Money and thereby treat the entire issue of moneys parked in secret accounts in tax havens as a mere tax evasion issue when larger questions of the source of The real issue is such income remains unanswered, is complete dilution of a serious issue. Red Money and red money account holders – the drug peddler or the corrupt minister – that is of interest to the nation as the entire Red money – not merely the tax portion belongs to the Government. And on this, there cannot be any secrecy, DTAA or no DTAA, accentuates M.R. Venkatesh. 9 vice-versa] and nothing else. DTAA is not Stunned? Now get Stumped! intended to If the reference to the Indo- benefit German DTAA and the conse- quential debate on confidentiality buccaneers is stunning, the reference to origin evading of the “information” would stump you. The origin of this in- taxes in both formation is not in Germany, but countries Liechtenstein. It is often remarked that peo- ple all over the world park their But Why this debate on DTAA? treated as secret in the same man- dirty money in Switzerland. And But if this up-front dilution ner as information obtained under shocks you, the repeated reference the domestic laws of that State and the Swiss? Well it is Liechtenstein – to Double Taxation Avoidance shall be disclosed only to persons popularly called the ugly wart in the Agreement [DTAA] in this debate or authorities (including courts and otherwise beautiful face of Eu- will stun you. administrative bodies) involved in rope. In fact, the origin of this “in- DTAA, as readers would the assessment or collection of, the formation” is from the LGT Bank know, is an agreement between two enforcement or prosecution in re- in Liechtenstein, where the Ger- sovereign countries to ensure that spect of, or the determination of mans were successful in prising income in one country to a tax pay- appeals in relation to, the taxes cov- open the details of account hold- er in another is not taxed in both ered by this Agreement.” ers by apparently bribing an em- countries Viz., the country where Again, one need not be a stu- ployee of that Bank. the income originates as well as the dent of law to decipher the con- Having obtained the details in country of residence of the tax tents of Article 26. It is apparent 2008, the Germans were willing to payer. that the confidentiality of the in- share the “information” [i.e. the Therefore, DTAA ensures formation applies only to situa- data they obtained illegally from that either the income is taxed in tions where DTAA is applicable in LGT Bank] with all sovereign gov- country of origin or in country the first place – i.e. to a legitimate ernments. And that included India. where the tax-payer is resident. income arising in one country to It is pertinent to note that we dith- Thus, readers may note DTAA in- an honest tax-payer in another, not ered till 2011 when the hydraulic volves genuine tax payers having otherwise. pressure of public opinion forced legitimate income and not to those Surely, DTAA is not intended the then UPA government to seek who possess illicit income. to benefit buccaneers evading taxes this “information” from Germans, Just as a tax-payer is entitled in both countries and definitely not inexplicably under DTAA. to confidentiality of his income those who shy from even owning Now where does DTAA be- and taxes paid within a country, the income in the first place. But tween India and Germany figure every DTAA provides clause for this is what the Government of in this illegal data obtained from confidentiality of the information India is arguing with the apex court Lichtenstein by Germans? Why did so exchanged between the two for the past three years without any the then UPA Government seek countries. let or fear of contradiction! information under DTAA? Did Article 26 of the DTAA be- The emphasis strangely seems the Germans share this informa- tween India and Germany deals to be on the words “any informa- tion with other countries under the with the issue of confidentiality of tion” without referring to the pre- respective DTAA or did it provide the information so exchanged be- vious 25 Articles in the DTAA that it in normal course? And crucially tween the two countries. Accord- deal only and only with income where is the confidential clause in ingly: “Any information received arising to a resident in India and such “information” obtained ille- by a Contracting State shall be having income in Germany [or gally? 10 NDA government must explain the position to the Germans as it should to the Hon’ble Supreme Court.
Questions for which there are no answers. Strangely, having criticised the previous UPA Government when it was in office for seeking infor- data obtained thus far – from money. mation under the DTAA, the Switzerland through the French It is therefore natural that the NDA is now explaining the virtues authorities and Liechtenstein names of the red money account of DTAA and explaining as to through the German authorities is holders – the drug peddler or the why the Hon’ble SC should treat divine providence. On both cases, corrupt minister – that is of inter- information obtained from Ger- the Government of India has noth- est to the nation as the entire Red many – read Liechtenstein – as ing to show for its own efforts. money – not merely the tax por- confidential and not reveal the It may not be out of place to tion belongs to the Government. names of account holders. mention that for the past decade And on this, there cannot be any Wonders never cease, do they? the Government of India [under secrecy, DTAA or no DTAA. It may be noted that the “in- the UPA of course] has played Strangely, the Government of formation” from Germany com- footsie with such account holders India seems to be oblivious to this prises details of a mere 18 account by not having one successful indig- distinction. By seeing this as a holders against whom the Income- enous probe. And even as the “Black Money” problem and tax department has, according to French and German have done hence addressing the same purely the recent Writ filed in the Hon’ble and provided data to us on a plat- as a tax evasion issue and leaving it SC, concluded investigations under ter, the UPA Government acted to the tax authorities to deal with the Indian tax laws and launched with great reluctance and with a the same, we are guilty of diluting prosecutions. calculated aim to obfuscate. the issue. But this Liechtenstein data Naturally, that brings us to the More pertinently, the UPA is obtained through Germany is a question on the need to differenti- guilty of seeking this information trailer of a magnum opus. The ate between “Black” and “Red” from the Germans under the next set of data were received Money. Money parked in secret ac- DTAA. And even if the Germans from the French when they did lay counts abroad in a tax haven for have provided the information un- hands on an employee of Zurich fear of taxes by a businessman is der the DTAA and now object to Branch of HSBC, Switzerland. This purely Black Money. World over the same being made public, the data from France contains the tax havens cater to the need of such NDA government must explain the names of approximately 700 In- businessmen. It is a sin but of a position to the Germans as it should dians. It is not clear at this point lesser order. to the Hon’ble Supreme Court. whether the Government of In- But the real issue is Red Mon- And either way – DTAA does dia is citing the confidentiality clause ey. And surely that sustains tax ha- not apply to “Red Money.” Over in the Indo-French DTAA also. If vens which offer secrecy to gener- to Hon’ble Supreme Court for a they do, let us be clear, it is an elab- ators of “Red” money, launders it precise ruling on this issue. orate charade. and allows it to be re-cycled into Else the debate on the issue is What is interesting is that the global economy as lily white clean fast degenerating into a farce. 11 Implement Swadeshi Model of Development
BJP considers itself a party with difference and proudly expresses its commitment to take In- dia to its supreme glory-‘Param Vaibhav’. BJP also proclaims to have a thought to fulfil this commitment. The thought is of ‘Integral hu- manism’ and normally displayed on every party banner with photos of Pt Deendayal Up- adhyaya. Integral humanism is a brief of Bhartiya Vichar Darshan shaped in to a polit- ico-economic thought giving BJP a founda- tion for its policy prescriptions. One policy pre- scription derived from integral humanism is its ‘Swadeshi Model of Development’. More the BJP become comfortable in its governance at centre more will be the pres- sures to implement its own policy prescriptions than to follow earlier policies. It is thus desirable to discuss Swadeshi model. ‘Swadeshi’ a spirit of enthuse and a right ‘Swadsehi’ is a spirit of enthuse that played a great role in Indian freedom struggle. First, ‘Swadeshi’ is a claim local people have on all natural and other resources that are available within their environment and geography and a right for its utilization for their development. Second, Swadeshi is a national commit- ment and a part of state policies that protect the interests of its citizens and all resources including all socio-economic capabilities of a nation from exploitation Present policies of by other countries or outside players for their benefits. Third, Swadeshi is the industrialization assurance of utilization of all natural and other resources within one environment have brought world and one geography for the socio-economic growth and prosperity of resident societies to non- people. Fourth, Swadeshi is an opportunity for people and society to pursue returnable path of goals of growth, development and prosperity within their cultural outlook and destruction. Indian lifestyles without outside interferences or thrusting of choices and alternate life- Swadeshi Model is styles from outside. Fifth, Swadeshi is following of one’s own ‘Swabhav dhar- the alternative that ma’ manifested at society and regional or national level and achieving of all goals cares for human of socio-economic prosperity to fulfil cultural and spiritual needs by carrying development and suitable modifications to its environment and geography. goes well with the Colonization is the background nature and other As is known, last 400 years were different from earlier centuries due to its forms of life. technological innovations and development of expansionist tendencies. This led Hopefully BJP to colonization of many countries and exploitation of natural and other resourc- government will es benefiting colonizers. The system of local claims to utilize all the resources initiate available within their environment and geography for local benefits thus got implementation of modified with this colonization that finally led to confrontation and conflicts SMD, hopes among the local population and colonizers. India is no exception. Indians also Anil Javalekar asserted their claim on Indian resources through ‘Swadeshi movement’ and made 12 that as integral part of Indian free- self-reliant rural economy and de- ple. Preserving and protecting this dom struggle. prived rural population from their right and claim is one major com- livelihood source. This caused un- ponent of SMD. Globalization is a threat rest among farming community, Recently, colonization and ex- 2. Local self-sufficiency is crucial rural youth and tribal population pansionist tendencies have taken a Second, Swadeshi recognizes resulting in the protests and claim- new shape that allowed world’s claims of local people by support- ing rights over their agriculture and major economic players to control ing local self-sufficiency model of other natural resources. The Poli- world resources and gain on the development. This self-sufficiency cies of economic reforms and lib- cheap labour and abundant natural is with reference to basic infrastruc- eralization of 1990s and thereaf- resources of poor countries. Free- tural facilities, minimum food se- ter almost killed the idea of ing of world trade is their main tool curity requirements and minimum Swadeshi. This however, rejuve- and propagating false ideas of glo- livelihood support. Local area is nated Swadeshi Movement under balization and illusory integration identified with Common agro-cli- active guidance of ‘Swadeshi Jag- of world economies their main matic and socio-cultural character- ran Manch’, a platform created philosophy. This poses a new threat istics as talked about by Pt Deen- mainly to oppose growing foreign to local resources and local people dayalji in his concept of ‘Janpad’. intervention in socio-economic life that deprive them from their live- The exploitation of local resources of Indian society. The SJM now lihood source. ‘Swadeshi’ as con- for urban industrialization has en- leads Swadeshi Movement, pro- cept and as movement can counter dangered local self-sufficiency and mote thinking on Swadeshi and this move and possibly ensure con- has left depleted natural resources help shaping SMD for modern trol and utilization of local resourc- like land and water to local people. India. There are other NGOs like es for local development. This has made local areas dependent Ekatma Vichar Kendra and Ekat- on outside support in every aspect Swadeshi Model of Develop- ma Prabodh Mandal among oth- of their survival be of water, food ment (SMD) ers who help shape SMD. EPM or livelihood source and made peo- There is no precisely defined has already published its book ‘Na- ple to migrate to other areas. SMD Swadeshi model though ‘Swadeshi’ tional Policy Studies-in the light of consider this exploitation of local is a widely discussed concept. Ekatama Manav Darshan’ high- resources without reference to lo- Much of the base level thinking for lighting major components of var- cal development and making local SMD is derived from Gandhian ious Indian National policies. Gan- people and area dependent on out- thoughts and was mainly emerged dhian thinkers and many environ- side support as dangerous and po- during freedom struggle. Acharya mentalists also help build SMD. Vinoba Bhave, great Gandhian, tentially not sustainable. Major components of SMD: elaborated and acted on ‘Swadeshi’ 3. Need appropriate policies through his ‘Bhoodan’ and ‘Gram 1.Territorial identities are important Third, SMD expects state to Swarajya’ movements and Pt First, SMD accept local iden- assure utilization of Indian resources Deendayalji insisted for economic tity of resources and needs of lo- for Indian development and accept system that achieve the production cal people. Local lifestyle needs are this as its national commitment. This of all the basic things essential for conditioned mainly by local envi- implies not falling prey to lobbying the maintenance and development ronment and local geography and and world politico-economic pres- of people as well as the protec- societies are solely dependent on sures that insist for opening of In- tion and development of the Na- natural and other resources avail- dian markets or investment oppor- tion. After independence, the idea able within their territory. Right to tunities in non-priority areas. For of Swadeshi was incorporated exploit natural resources within SMD, not every sector of Indian partially in the strategies of self- and meeting all their lifestyle needs economy is the priority for global- reliance. Indian state policies, how- are thus important for local com- ized trade nor does every sector ever, exploited Indian resources munities and disturbing this will need foreign capital. SMD pleads for urban industrialization that surely cause conflicts among dif- for restrictive use of foreign capital marginalized rural areas, destroyed ferent regions and different peo- and go slow attitude with foreign 13 trade mainly because its profiteer- economies to increase local in- velopment and climatic risks. Local ing priorities and speculative pref- comes is thus more important than areas and local people should ben- erences for high profits bring vola- welfare programmes of direct as- efit from emerging new technolo- tility in the local economy, makes it sistance to poor and unemployed gies and innovations world over. unstable and harm long term inter- or promoting real estate led urban- SMD however, ask for a guarded ests of local producers. isation and corporate led high tech approach towards new innovations Other important policy components: manufacturing and service sector. and new technologies because of i. India’s development mod- iv. Local small economies are its doubtful intended applications el, in principle, should be based on important for Indian self-reliance and profit motifs that endanger lo- Indian indigenous thought, resource and their survival depends on loc- cal resources, local environment and capabilities within and Indian needs. alised production and localised con- harm interests of local people. Uniform industrialization and sumptive lifestyles. Indian policies 5. People’s participation consumerist lifestyle without refer- therefore, should incentivise local Fifth, SMD is more dependent ence to local resources and local production and local consumption on public participation in its imple- needs is a falls idea propagated in through favourable taxation and mentation and like to create aware- the name of globalization and revenue systems and local market ness among people about the dan- should be buried for all purposes. development. Local economies can gers of consumptive lifestyles that Every country and every area is survive not by taxing outsiders but threatens earthly life systems. Partici- unique with its needs and resource by giving local advantage and lo- pative Public spirit and resistance base and should follow its own cal competitive edge to local pro- to socio-economic injustice apart path or model. Self-reliance in ducers in local markets. from national outlook, a measure every of its meaning should be the v. History has not been fair of self-discipline, and law-abiding- base of Indian policies. to natural resources and to local ness are important for success of ii. Indian education, research people or local area. Natural re- Swadeshi’ model. SMD thus en- and technologies presently carry the sources were first free to all but visages a great role for NGOs and lifestyle approaches of western later controlled by powerful rul- Volunteers particularly those who countries and follow their devel- ers and then by state. Now this are enthused with Swadeshi spirit. opment path. This has not only control is being transferred to drained Indian resources but also world’s major economic players Implement Swadeshi Model distorted Indian socio-economic for their profits in the name of in- Present policies of industrial- life systems. Changing this orienta- dustrialization and progress. SMD ization have brought world soci- tion of Indian education and re- pleads for revival of this transfer eties to non-returnable path of search and developing appropri- system so to incorporate natural destruction. New proposed ap- ate technologies that suits to In- rights of local people. The need is proaches and new policies are frag- dian system is important. to review all Indian laws that al- mented pieces that offer isolated iii. India is a country of small low use of natural resources solution to specific problem wheth- entrepreneurs, small traders and through simple mode of pricing er it is environment related or re- small agriculturists with small in- and value payment. The users lating to distributive justice of eco- come and small needs. Therefore, should be made more responsible nomic gains or the problems of Small land holding agriculture, towards natural resources and lo- production, market or international small entrepreneur led manufactur- cal interests. trade. These isolated approaches ing and trade along with support- 4. Local areas should benefit from are not enough to give compre- ive infrastructure by government innovations hensive model. Indian Swadeshi are real sources of Indian devel- Fourth, SMD consider all the Model is the alternative that care opment. More important, groom- new innovations and new technol- for human development and goes ing of localized free enterprise and ogies as resources of mankind and well with the nature and other self-employment is the answer to are helpful to increase efficiency and forms of life. Hopefully BJP gov- Indian poverty and unemployment. productivity of limited resources ernment will initiate implementa- Protecting and supporting local and also help mitigate many of de- tion of SMD. 14 Ekatma Manav-vad (Integral Humanism): In the Age of Civilisations
Once upon a time political ideologies were much in debate and were dis- cussed and spoken about at length by the political leadership of the country , unlike today , when there is a broad consensus among the governing class about which route to follow both in politics and in economics. Irrespective of the terms we use as part of the po- litical debate, the ideas of political de- bate has it seems moved beyond ide- ologies to issues. It seems in today’s al- most post ideological age the conflict between various different ideologies may look to be in the distant past, but in the 1960s they were a lived reality. India in the 1960s was torn into broadly four political currents, which have mingled and separated to what they are today. These currents exist just underneath our political parties . Sometimes our political landscape reflects these currents under the broad umbrella of different parties and sometimes they seem to have disap- peared only to come up under a different form and clothing , only to go subter- ranean again. The four broad political streams which have flowed under the Indian polit- ical course could be broadly classified as (a) The Indian National Congress which was and is today , the inheritor of the liberal discourse in the country , deeply It is important to westernized” and “socialist and secular” in a clearly western sense (b) The Social- read and ists which consisted of a large number of assorted groups , but the most influen- understand Pandit tial being the Lohiaites , tracing their source to one of the most perceptive social Deen Dayal thinkers of the country , Ram Manohar Lohia , who mixed “class and caste” effec- Upadhyay and his tively into an Indian socialist argument which till today carries immense weight , (c) theory of “Ekatma Swatantra followers , that is those who believed in the primacy of Markets and Manava-vad” or Individualism recognizing that as values they had parallels in Indian culture and what is known as civilization but were oriented towards wester style free market individualism . They “Integral were famously lead by the brilliant and erudite Chakravarty Rajagopalachari and (d) Humanism” and those who contributed to the idea of the Jana Sangh , an unique India centric , pro how “cultural poor interpretation of political thinking based on “cultural nationalism” lead by the nationalism” came unequalled political philosopher Pandit Deen Dayal Upadhyay. to occupy a central In retrospect today , the differences between Swatantra and Jana Sangh may space in the look not too wide because in the course of history both the streams overlapped political and came to be subsumed into a broad cultural nationalist narrative after the imagination of the emergence of the Bharatiya Janata Party from the ashes of the Janata Party but people of the these narratives still exist till this day and are the two undercurrents which still country, opines move under the broad tent of the Bharatiya Janata Party. Vikramjit Banerjee In reading the intellectual political history of the country and understanding 15 “Integral Humanism must necessarily make a balanced apprais- tive merits, while being critical of al of both Bharatiya as well as Western ideologies. On the basis their excesses and alienness. of this evaluation it seeks to show a way which would make man Integral Humanism followed progress further from his present position of thought, experience the tradition of advaita developed and achievement. The Western world has achieved great material by Adi Sankara. Non-dualism rep- progress but in the field of spiritual attainment it has not been resented the unifying principle of able to make much headway. India on the other hand lags far every object in the universe, and of behind in material advancement and so its spiritualism has become a hollow-sounding word. There can be no spiritual salvation with- which humankind was a part. This, out material prosperity. It is necessary, therefore, that we strive according to Pt. Deendayal Up- for strength, and material happiness, so that we may be able to adhyaya, was the essence and con- build up national health and contribute to the progress of the tribution of Indian culture. world, instead of being a burden on it. Integral Humanism is the Humankind, according to ideal which determines our direction which has to be translated Upadhyaya, had four hierarchical- into practice. Our program, therefore, has to be grounded in real- ly organized attributes of body, ism. Indeed realism is the forte of our program, the measure of our achievements and the touchstone of our ideal.” mind, intellect and soul which cor- Pt. Deen Dayal Upadhyay himself broadly categorized the responded to four universal objec- movements of the day into two parts, the socialists and the non tives, kama (desire or satisfaction), socialists and observed “Parties that have faith in democracy nat- artha (wealth), dharma (moral du- urally belong to the non-socialist group. Bharatiya Jana Sangh ties) and moksha (total liberation and the Swatantra party can be placed in this group. But there is or ‘salvation’). While none could be a difference in emphasis in the two parties. The Swatantra Party ignored, dharma is the ‘basic’, and is non-socialist to the extent of oppositing all acts of the Govern- ment that seek to change that status quo in an effort to better the moksha the ‘ultimate’ objective of lot of the under-privileged. The Jana Sangh is non-socialist so far humankind and society. He claimed as it does not subscribe to the totalitarian concept of socialism that the problem with both capi- but it definitely stands for social justice, reduction of inequali- talist and socialist ideologies is that ties, changing of the status quo in most matters. By non-socialism they only consider the needs of it does not mean capitalism lf laissez faire variety. body and mind, and were hence The Swatantra Party does not visualise any other growth pro- based on the materialist objectives cess except that of the industrial West. It also does not care about nationalism. It is there fore a democratic party but it can- of desire and wealth. Upadhyaya not be called national democratic. Bharatiya Jana Sangh places rejected social systems in which in- equal reliance on nationalism and democracy and recognises that dividualism ‘reigned supreme’. He socialism too has some part to play in the present stage of devel- also rejected communism in which opment of the country.” individualism was ‘crushed’ as part "National Democrats and National Socialists", Organiser, of a ‘large heartless machine’. Soci- Diwali, 1963,
greement has been reached between India and the United States on the contentious issue of Minimum Support Price (MSP) given by our gov- Aernment to our farmers for procuring food grains for the food subsidy program under the Food Security Act. Last year agreement had been reached in the WTO on this issue. The developed countries wanted uniform rules to be followed at ports across the countries so that goods could move seamlessly. This was called “Trade Facilitation Agreement.” Presently countries have prescribed different formats which make it difficult to undertake trade. India had agreed to this. In return we had won a four year reprieve on paying higher prices to our farmers for procuring food grains under our MSP program. That, however, will not be sufficient to provide lasting relief to our farmers. Presently Government of India is purchasing food grains from our farmers at rates fixed administratively under the MSP programme. Wheat, for example, is being purchased at about Rs 15 per kilo and supplied to Ration Shops for distri- bution at Rs 1 per kilo to BPL households. Food exporting countries had object- ed to this. Their contention was that India should purchase the wheat in the global markets and dismantle its MSP programme. A country like Australia was being deprived of the opportunity of supplying wheat at, say, Rs 12 per kilo. By pur- chasing wheat from Indian farmers under the MSP programme, India was de- priving Australian farmers of an opportunity to export to India, they said. A give-and-take agreement was reached in the WTO last year. India agreed to sign the Trade Facilitation Agreement. In return, the developed countries agreed not to challenge India’s MSP programme for four years. This agreement was to be signed this year. But the our government changed and NDA came to power. The NDA decided that the reprieve of four years was not sufficient and wanted a permanent arrangement by which it could pay higher price to its farmers. The The condition of NDA Government decided not to sign the Trade Facilitation Agreement. The WTO our farmers has talks got deadlocked. Now, unconfirmed reports indicate that the United States has continued to decline over the last few decades because of faulty policies of the Government. NDA has done well by obtaining a permanent reprieve for continuing our MSP programme. But there is need to go much farther, says Dr Bharat Jhunjhunwala 18 agreed not to challenge the MSP other agriculture sector policies as of profitable opportunities in vil- programme in perpetuity. This has well. We are asking for dismantling lages. Expansion of credit will removed the roadblock to the sign- of domestic agricultural subsidies serve no purpose in this situation. ing of the Trade Facilitation Agree- by the rich countries under the It is like pouring tap water into the ment. The WTO can move for- WTO in pursuance of this policy. waterfall. The Government must ward; and Indian farmers can en- The idea is that opening of the focus on specific areas such as flo- joy the benefits of the MSP pro- markets of rich countries will pro- riculture where the profits are high. gramme for times to come. vide opportunities for our farm- Public investment in agricul- There is flip side to the MSP ers. I fully support this approach ture also needs a close study. Mere programme, however. MSP is pro- but the final benefits of this strate- building of more canals and in- vided to select crops such as wheat, gy are doubtful because these mar- creasing area under irrigation will rice and sugarcane. Our farmers kets will be opened not only for not help because, as mentioned have increased the production of us but for other players as well. previously, the prices are declining. these crops because they are as- The resulting increase in supply Remember that most farmers’ sui- sured of a decent price. This suc- from other producers can wipe out cides are taking place in irrigated cess has shifted the farmer’s atten- most of the expected gains in price areas. Public investment must be tion away from other crops that from opening of these markets. fine tuned to support value-added could provide higher returns such For example, the entry of Vietnam agriculture. For example, the glo- as vegetables, fruits, timber, flow- in coffee and black pepper has bal demand for organic foods— er and orchids because of uncer- wiped out the gains for Indian guavas, mangoes, coffee and tea— tainty of price here. The govern- farmers from free trade. We is increasing. The Government ment must, therefore, work out should consider an altogether dif- must create a certification mecha- ways to move the farmers from ferent policy. We must make car- nism in each district to promote low-value MSP crops to high-val- tels for specific agricultural com- this. Export subsidy may be pro- ue market-oriented crops. In par- modities just as OPEC has done vided to private exporters of val- ticular it is important to support for oil. India and Malaysia can join ue-added agricultural commodities crops that have a huge internation- hand to increase the world price to help them penetrate this lucra- al demand such as flowers, organ- of rubber. India can likewise co- tive global market. ic food and designer vegetables. operate with Bangladesh in jute, Sri The Government is trying to The NDA should put in place a Lanka in tea and Pakistan and reduce agricultural subsidies of programme for providing skill Egypt in cotton. This will certainly food, fertilizers, water and diesel development in advanced agricul- provide high prices to our farm- to contain its fiscal deficit. The need tural technologies such as tissue ers. But we may have to come out is to turn these subsidies towards culture to enable cultivation of the WTO in the process. areas that lead to a multiplier ef- these crops. We have a varied cli- The Government is trying to fect. For example, instead of sub- mate from Kerala to Kashmir. It increase the flow of credit to the sidizing electricity for extracting is possible for us to become glo- farmers under the impression that ground water, the same money can bal flower and vegetable hub and lower interest rates will provide be better utilized to provide subsi- supply these items across the year. relief to them. No relief is likely dy for water recharging by build- Problem is that prices of these to be got, however. The rural ar- ing check dams, ponds and anicuts. market-based crops are uncertain eas are flushed with funds. The The conditions of our farmers have while those of the MSP-based crops credit-deposit ratio of rural banks continued to decline over the last are certain. NDA must work out a is typically 15—for every Rs 100 few decades because of these faulty system to cover the risk of the of deposits the loan given out is policies despite massive investments farmers in cultivation of market- only Rs 15. Rural banks have plen- by the Government. NDA has based crops. A subsidized insurance tiful depositors but few applicants done well by obtaining a perma- system which covers against price for loans. Farmers have the mon- nent reprieve for continuing our decline would be one option. ey but no opportunity to deploy it MSP programme. But there is need There is a need to reconsider productively because of absence to go much farther. 19 The two plans: promises, performance, prospects The 1958 Book by Pt. Deendayal Upadyay Re-launched
A function to release the reprint- as the base. ed edition of “The two plans: Muralidhar Rao, general promises, performance, pros- secretary of BJP, in his speech pects ” a book by Pt. Deendayal drew the attention of partici- Upadyay was held in Ektam pants to the conditions in which Bhawan DDU Marg on 15th Pt. Deendayal Upadyay wrote Nov. 2014. Book release func- and analysed 5 year plans. On tion was presided over by Dr. one side was the Prime Minis- Bajrang Lal Gupt, while Sh. ter of those times who was also Muralidhar Rao was the key one of the prominent leader's speaker. Dr. Mahesh Chander of freedom struggle and that of Sharma, chaiman of Ekatam nation. Socialism was globally Manav Pratishtan introduced on ascendance. On other side book subject and the guests. was a young political leader of Beginning with the subject, a political party that was in its Dr. Mahesh Chander Sharma re- infancy and had no profile to called life and times of Deendayal demonstrate to impress people. Upadyay and said that Pandit ji was a person who would Muralidhar Rao criticised people who were accusing always recast himself according to the requirements of BJP of mainstreamisation of its icons saying “When the responsibility, he was asked to shoulder. That is why, PM Narendra Modi announced dismantling of the "we see Deendayal ji & who wrote scholarly excellent Planning Commission, there was no protest, no literary works in novel form like “Chander Gupta mourning. It is a clear indication that leaders like Deen Maurya” and “biography of Shankaracharya” writes Dayal Upadhyay who judged this country correctly is an excellent analysis of five year plans for a political in the mainstream, not Nehru.” Deendyal ji dared organisation", continued Mahesh ji. He further recalled not only to challenge the most popular and powerful that when workers of the party asked about “Eco- leader, but also the institutions that he was trying to nomic policy of BJS” Deendayal ji to resorted a school show as modern temples of India Murali ji added. teacher type of educator with black board and chalk Deendayal was not even an economist of the type in a workshop in Nagpur, to explain ecomomics. and repute of those who had prepared these five year Pt. Upadhyaya is well known for his idea Inte- plans, yet his analysis was so deep, comprehensive and gral Humanism – a concept which is deeply embed- farsighted that the then Deputy Chairman of the plan- ded in Indian Psyche. The philosophy of Integral ning commission Sh. Shrimannarayan Aggarwal is- Humanism advocates the simultaneous and integrat- sued a circular to all the concerned officials stating – ed programming of the body, mind, intellect and soul “I have never seen such a serious and factual analysis of every human being. His philosophy of Integral as Pandit ji has done in this book”, Murali ji quoted. Humanism, is a synthesis of the material and the spir- In his extensive and impressive talk Murali ji high- itual & the individual and the collective. In the field lighted several aspects of the book and remarked that of politics and economics, he was pragmatic and those who read this book seriously will realise that down to earth. He visualized for India a decentral- Deendayal ji has explicitly conveyed political message ized polity and self-reliant economy with the village where ever it was possible without compromising 20 cultural nationalism and integral humanism. He has present government also. Some of these quotes are effectively exposed the contradictious of both capi- “from conception to inception the plan has been based talism and communism and forecasted their fall at a on speculative estimates of possible resources which time when these ideologies were yet to peak. had no relation to realities.” Assumptions on which the Murali ji appreciated the vision of those who plan has been based are more of wishful thinking.” Dr. had asked Deendayal ji to work in political field. He Bajrang Lal ji was explaining the casualness and discon- also congratulated publishers for making this rare book net of the people in authority with the real India. available to present generation at a time when Neh- He also quoted Deendayal ji saying “Even the ru’s theories were no longer relevant and models like so called most intelligent people in the country have planning commission were losing relevance. either lost the capacity to give free expression to their In his concluding remarks Dr. Bajrang Lal Gupt opinions if they run counter to the fanciful utterances extensively quoted Deendyal Upadyay to underline of those in authority.” his several observations that are equally relevant even He was emphasing need to be qualified to un- today. These quotes are in a way commentary on the derstand Pt. Deendayal Upadyay and his message. Dattopant Thengadi Memorial Lecture 2014 Gurumurthy speaks on Indian Economy, Indian Impulses and Western Ideas
elhi Unit of Swadeshi Jagran Macnh organised Dan impressive function to pay rich tributes to its founder Rev. Dattopant Thengadi on his 94th birth anniversary. Function was held in constitution club, Rafi Marg, New Delhi on Nov. 11, 2014. Dr. Sachin Chaturvedi, Director General of RIS presided over the function, while Sh. S. Gurumurthy delivered the Dattopant Thengadi Memorial lecture. Sh. Kashmiri Lal ji spoke about life and vision of Rev.Dattopant Thengadi. Rev. Dattopant Thengadi was born on Nov. 10, 1920 in Arvi of Maharashtra’s Wardha district. He is Bharatiya Vidyarthi Parishad in 1949, Bharatiya Kisan the founder of SJM. Hence his birthday is an impor- Sangh in 1979, Swadeshi Jagran Manch in 1991 and tant occasion to recall his life and works. Samajik Samrasta Manch in 1983. He was also involved Sh. Kashmiri Lal Rashtriya Sangathak of SJM in in a number of other organisations of all hues and his brief speech highlighted several aspects of the life nature like the Jan Sangh, Akhil Bhartiya Adhivakta Par- of Dattopant Thengadi as an organiser, thinker, ora- ishad , Sanskar Bharti and Swadeshi Science Movement. tor, philosopher and guide. He recalled that Thenga- Thengadi ji had very good personal relations with di ji was eloquent in speech and versatile with his writ- all people cutting across party barriers, Kashmiri lal ing and has some 140 titles to his credit in Marathi, added. Hindi and English. In an excellent and innovative manner Kashmiri Most of his works are mainly focussed on the Lal ji used the personality of Dattopant Thengadi’s problems of the working class and some of his pop- imaginary presence to evaluate present situation. He ular books are “Vichar Sutre’, `Karyakarta’, `Sanket- said that, Thengadi ji would have been a very happy rekha’, `Ekatma Manav’, `Ek Adhyayan’, `Pragatipath person to see Indian PM receiving an unprecedented Kisan’, `Dr Ambedkar’, `Saptakram’ and `Lakshya reception abroad particularly in USA. Similarly the Aur Karya’. other things that would have added to the happiness Thengadi, a graduate in law, was not only the of Thengadi ji would include, Indian stand on WTO founder of BMS in 1955 but also helped set up Akhil and successful launch of Mangalyaan with complete 21 swadeshi inputs. But constantly contradicting messag- sector and private sector corporate/oprganised sec- es emanating from government on GM foods and tor, Gurumurthy quoted economic survey to point continued thrust on FDI would have turned him sad. out that, just 3.7 million jobs in 20 years from 1991 An efficient organisation builder, Dattatraya Bap- have been provided by so called organised sector. urao alias Dattoppant Thengadi, the trade union leader He quoted The Asia/Pacific Equity Research and RSS ideologue, was equally proficient at mesmeris- paper of Crédit Suisse — which manages $1.3 tril- ing people by his words and deeds. He has inspired a lion worth of assets — to point out that corporates huge number of people whosoever came into his constitute just “the tail” of the Indian economy and contact. He had toured the length and breadth of the that, only half of India’s GDP and 10 percent of country in his capacity as a RSS Pracharak in his early India’s employment are in the formal sector. Further, days and later the expanse of the world as a pioneer only a fraction of the formal sector is listed.” of trade union movement. Compared to it the unincorporated sector pro- Every year a memorial lecture is organised on vided the bulk of employment. This is the sector which some important subject related to Indian Economy. has been denied the financial assistance from the state. This year Sh. S. Gurumurthy, all India co-convener and They are forced to borrow money on exorbitant rates well know columnist, writer, CA and corporate advi- of interest that at times goes up to 30% per day. sor was the main speaker. He delivered as thought pro- The National Sample Survey Organisation voking and well informed lecture on “Indian Econo- (NSSO) Survey 2011, he added, presents as compris- my: Indian impulses and Western Ideas.” ing 57.7 million non-corporate business units outside Speaking on the occasion he, pointed out policy the huge construction sector. And 70 per cent of them fallacy of economic education in India where students are unregistered, says NSSO. They are the fastest grow- in classes are taught theories far removed from eco- ing since 1991, almost doubling since 1998. In con- nomic reality on ground. Referring to a study con- trast, and post-liberalisation, the share of jobs in the ducted by SJM in Tamil Nadu in this context, in which organised sector came down from 8 to 7 per cent. ground 350 Women teaching economies were sur- Pointing to what he termed as the unknown pic- veyed, Gurumurthy revealed that even these teachers ture of this huge sector, Gurumurthy underlined that themselves did not follow in their own domestic lives majority of the 57.7 million units operate in rural ar- what they teach in classrooms. Referring to forma- eas, the most difficult terrain for the government to tion of SJM by Rev. Dattopant Thengadi in 1991, provide non-farming jobs. They add an aggregate Gurumurthy reminded of the situation arising then value of Rs.6.28 lakh crore to the national economy, after the breaking of elsewhere USSR. Paying rich 70 per cent of them in the rural areas, and employ tributes to the amazing capabilities of Dattopant Then- 108 million; 53 million in the rural areas. Their value gadi, he recalled that Thengadi ji had correctly pre- addition per unit is Rs.1.09 lakh; per worker it is dicting fall of both socialism and capitalism, that too Rs.58,000, and per hired worker it is Rs.47,000, which in the correct order. equals the average per capita income in 2009-10 and is Both socialism and capitalism are similar in their higher than the rural per capita income. The fixed cap- understanding of human needs, the only difference ital employed per unit is Rs.2 lakh, which is not insignif- being replacement of the role (ownership) envisaged icant. More than two-thirds of them are engaged in for state in socialist model by market in capitalist trade and services and a fourth, in manufacturing. model, Gurumurthy added. Another vital, but unknown truth is that it is dom- He further said that every effort to foist these inated by the disadvantaged sections — the Other Back- western ideas on Indian people failed because of our ward Classes (OBCs) the Scheduled Castes (SC) and traditional wisdom and orientation of society in a Scheduled Tribes (ST), he added further. In spite of all manner that respects family and relations. these glaring facts the huge section of population en- He cited several examples supported this view gaged in this sector has not only survived but has also with official data to substantiate his point. He said that preserved culture and civilisational ethos of the nation. Indian economy was feminine in nature and major part He said that Western thinkers are unable to un- of credit to preserve it goes to Indian women. derstand the complexities of Indian economy hence Comparing employment provided by public their ideas can’t be applied here. He said SJM from 22 very beginning has been raising its voice on these is- omy today. He in particular mentioned the need to sues without fear or favour. He cited the example of evaluate the huge amount of aid provided by India to minority judgements of the courts to assert that in the other countries & the returns of same for the country. manner a Judge in spite of knowing that his dissent Dr. Ashwani Mahajan proposed the vote of won’t matter still puts it on record SJM has been voic- thanks. Ajey Bharti conducted the proceedings. Among ing its dissent and stand vindicated now. other things the eloquent presence of Lok Sabha Dr. Sacin Chaturvedi in his concluding remarks speaker Smt. Sumitra Mahajan in the audience was a highlighted several points that the confronts the econ- major high light of the event.
Babu Genu A Tribute to a Swadeshi Martyr
Babu Genu,a congress party worker steeped in abject poverty. The only in the pre-independence era, was prized possession of the family was killed in the most gruesome manner a bullock that was used for farm- while attempting to stop a speeding ing. His father was a farmer and the truck in Mumbai from carrying im- other members of his family were ported materials from Britain. It was his mother, two elder brothers and on 12th December 1930 that Babu a sister. His father passed away in Genu Babu Genu lay on the ground 1910 when he was a mere two year before the speeding truck in the New old child. Hanuman Road at Kalba Devi at His mother unable to continue around 11 AM on that fateful day in living in her village migrated to an attempt to prevent foreign goods Mumbai to earn her livelihood as a from entering the Indian soil. domestic help. She left her sons back Even as the police were physi- in the village in the care of some cally preventing him and his colleagues neighbours from participating in this non-violent All this meant that Babu was protest, Babu Genu never gave up his resolve to stop deprived of formal education in his formative years. the trucks. The truck driver - Balbir Singh – an Indian Yet that did not mean that he was neither ignorant would come close to the protestors and stop for he nor unaware of the issues confronting the country. would not and could not drive over fellow Indians. After a spending a few years in the native village Babu Seeing this, the police once again intervened and phys- Genu joined his mother in Mumbai. As his mother ically removed the protestors from the road to en- could not support his stay in Mumbai Babu Genu able the truck pass through. was compelled to seek employment as a casual la- Freeing himself from the policemen gathered bourer in the mills of Mumbai. there, Babu Genu once again lay on the road in an- On many days he would not get employed. This other attempt to prevent the passing trucks. Seeing did not deter him and he did not feel left down. Quite the procrastination of the Indian driver the British the contrary that gave him enough time and space to sergeant lost his temper and took on himself to drive interact with the leading lights of independence move- the truck at full speed over Banu Genu crushing his ment in Mumbai and in the process understand it in head and leaving behind a pool of blood and mass different perspective. of flesh. Babu Genu was seriously injured and within Babu Genu was highly influenced by the sacri- hours passed away. He was in his early twenties when fices of Lala Lajpath Rai and the trio of Bhagath Singh, he died. Yet his life is a message to every Indian. Rajguru and Sukh Dev. Yet he was wedded to the Babu Genu was born in 1908 in a poor family cause of non-violence and satyagraha as enunciated in Pune district of Maharasthra – a family that was by Mahatma Gandhi. 23 Unnat Gaon - Unnat Bharat
ooking at the unemployment and poverty in rural India the spending on MGN- LREGA should have increased but in reality it has not, due to various reasons which include corruption, malpractices, and delays in identification, processing and approval for projects/works. The poor man suffers due to dishonesty and inefficiency of authorities and officials. I will not go into details of other schemes but the fact is that the actual outcome on ground has been extremely poor. Though we see the development on paper and Government reports but on ground the impact is not commensu- rate to the money spent. The access to sanitation may have increased to 24 % and the drinking water may have reached more than 90% villages, literacy rate in rural areas may have gone up to 69%, Indra Awas Yogna and Bharat Nirman may have provided houses to 32.3 million HH, PMGSY may have connected 1.78 lakh habitations, etc but how much of this development and work is qualitative, is a big question. Can we feed our growing population in years to come, at the current pace of agricultural growth, can we provide jobs to our young popula- tion which is expected to reach a figure of about 25 crs in 2025. Can we provide quality education to 70% of India’s population living in rural India and healthcare when 75% of quality health infrastructure is available in urban areas? We also need to examine if the progress so far is sustainable. Have we been able to create sustainable assets in terms of infrastructure and human resource, energy sources etc? Have we ensured the sustainability of natural resources? An ideal village and a strong rural India should have all ingredients of devel- opment. It should have all necessary infrastructural facilities including roads, elec- tricity, water, communication, education institutes, healthcare facility, sustainable ag- riculture & energy sources, nonfarm based income generation opportunities etc. In order to achieve that we require a need based policy, sustainable pro- gramme, rational strategy, financial planning, skilled, motivated & honest human resource, strong institutional back up, participation of stake holders and a dy- A major cause of namic monitoring mechanism. poverty among In policy formation mostly it has been seen that Government follows a top India’s rural people is lack of access to productive assets and financial resources. High levels of illiteracy, inadequate health care and extremely limited access to social services are common among poor rural people, emphasizes Sanjay Ganjoo 24 down approach. In order to form Punjab has seen the a viable policy it is necessary to study the needs of beneficiaries and to in- negative effects of clude their inputs in policy forma- extensive use of tion. While charting out the strategy we find that the detailing is missing. such chemicals on Government thinks that by drafting health of farmers & a 20 page guideline and SOP of a natural resources. particular scheme their job is over. India being a diverse county, we institutions are in a poor state of pesticides and restore the health of can’t apply uniform procedures and affairs. MoRD which runs schemes natural resources. Punjab has seen cost in every part of the country. worth Rs 80,000 crs invests least the negative effects of extensive use The implementing procedure and in capacity building of 30 + lakh of such chemicals on health of cost for MNERAGA/NGA/ Panchayati Representatives. farmers and natural resources. Cow PMGSY/NRLM etc in Rajasthan All such development pro- based agriculture, health and envi- has to be different than Tamil Nadu, grammes need to be governed by ronment has an immense potential for it to succeed. a study/research based mecha- to generate wealth for rural poor. Financial planning has to be nism. That can be done only if re- Receding water tables have to be done in such a way so that opti- search institutions are involved. restored by way of innovative mum and realistic prices are fac- Technology will play a major role methods of water management tored into and a regular fund flow in planning, implementing and and conservation. To eradicate pov- is maintained. In certain cases we monitoring of all programmes. erty unemployed rural youth and need to avoid straight jacketed ap- Increase in quantity and quality of women have to be gainfully en- proach. It has been observed that such institutions is necessary. A grid gaged in income generation activity in certain schemes the costing is of technology and research insti- based on rural resources. Keeping practically unviable. Sustainability tutes should be created to devel- in view the unavailability and unre- of projects and their impact on op, exchange and share technolo- liability of electricity the solar pow- environment is important. The as- gy solutions. Compartmental ap- er solutions will have to be tabbed. sets built should have a long life proach should be done away with. Last but not the least the in- without damage to the environ- Unless there is flow of informa- stitutions and government depart- ment. Poverty reduction and eco- tion, the lab to land mission can- ments have to work in close coor- nomic growth can be sustained only not be achieved. Therefore all such dination from policy formation to if natural resources are managed on institutions should open their win- implementation level in order to a sustainable basis. Greening rural dows and allow information to bring results. MHRD has launched development can stimulate rural flow. Every poor of this country a wonderful platform for knowl- economies, create jobs and help should have an easy access to tech- edge dissemination through E Li- maintain critical ecosystem services nologies, which can improve his life. brary but it will be of use to our and strengthen and strengthen cli- Unnat Bharat Abhiyan as I rural youngsters only if other de- mate resilience of the rural poor. understand is a mission of IIT partments cooperate and provide Investment on human resource Delhi to extend benefit of such computers, electricity and internet that actually carries out this work is sustainable technologies to rural connectivity to these schools. extremely important. While work- masses in order to develop model We need to focus on these ing in rural areas, that too when we villages. Focus of this conference topics and arrive at realistic solutions want people to participate in the is to create network of technolo- to develop Unnat Gaon and Un- process of governance, it is neces- gy institutes working in the area of nat Bharat to further achieve Gan- sary that the grass root officials and rural development and to extend dhi ji’s dream of “Gram Swaraj”. panchayati representatives are edu- their expertise to rural India. (The author Sanjay Ganjoo is CEO, Bhaskar cated, skilled and motivated. It is Organic agriculture can re- Foundation) extremely sad that Panchayati Raj move the ill effects of fertilizers and (Concluded) 25 India Should Leverage the Tectonic Shift in the Global Economic Order
s per Angus Maddison’s pioneering OECD study, India and China had nearly 50 percent of the global GDP as late as the1820‘s.1 Hence, India Aand China are not emerging or rising powers. They are merely retrieving their original position or re-emerging markets. In 1990, the share of G-7 in world GDP [on PPP base] was 51 % and that of the emerging markets was 36 %. But in 2014 it is the reverse. [See Chart 1]. The crisis faced by the West is primarily due to forgetting a six letter word called ‘saving’ which is a result of forgetting another six letter word called ‘fam- ily’. The West has nationalized families over the last sixty years. Old age, ill health, single mother, child care everything is the responsibility of the State. When family is a ‘burden’ and children an ‘encumbrance’, society can be said to be in a state that should cause concern. Actually, for long household savings has been negative in the USA We find from Table — 1 that the Debt to GDP ratio is above 300% in many developed countries. Importantly, the Household Debt to GDP ratio is signifi- cantly high in many G-7 countries like US, UK, Canada etc. and comparatively low in countries like China and India. Saving is still not forgotten in these coun- tries. Also, the credit card culture could be a major reason for such high levels of indebtedness in the developed countries. We have given in table-2 the household savings rate as percentage of dispos- able income for many OECD countries. Except France, most are in single digits. West is in decline The lack of savings by households has an impact not only on the current situation and many of its but also on distribution of wealth over time. We can use a thumb rule to conclude institutions are that whenever the savings rate of a society is less than 10% of its disposable failing. We should income [with stable taxation and inflation] then the society is bound to get into take the lead along difficulties. Many households begin to rely more and more on social security and with others in the East to create alternative institutions to the World Bank, the IMF and the UN. Our ability to look beyond Marx and market into our thriving communities and bazaars will provide us answers to many issues, advocates Prof. R Vaidyanathan 26 this liability, in some countries, is either not funded, or, inadequately funded. This, in turn creates sub- stantial issues of solvency of the government and the ability of the government to take care of the old age security of its citizens. This, coupled with the declin- ing population growth rate and longevity of the current generation, creates an explosive situation of a bankrupt state exchequer and lower accretion to the social security fund. The decline, and in many cas- es, the extinction of the joint fam- ily system in these countries adds to the agony of the elderly in oping world. But how long can over viability tomorrow.” [The Times, terms of their old age security and these anomalies continue? 08-09-2011]. Married couples health and emotional care. The in- Not only that, the West is also make up less than half [45%] of creasing number of children born facing a severe demographic crisis. all households in the USA says the out of wedlock to younger girls The population of Europe at the recent data from the Census Bu- and single mothers creates addition- time of the First World War was reau. Also, there has been huge al dependency numbers for the nearly 25% percent of the world’s growth in unmarried couples and State. The consumption driven so- population; today, it is around 11% single parent [mostly poor black ciety turns out to be a ‘Responsi- and is expected to become 3% in women] families. Society has be- bility Denial’ society. A couple of another twenty years. [See Chart — come dysfunctional or disorganized years ago, hundreds of aged peo- 2] Europe will disappear from the in the West. The Government is try- ple died in France from the heat world map unless migrants from ing to be organized. In India, soci- due to lack of care by their family Africa and Asia take it over. The ety is organized and Government and the State. Younger family demographic crisis impacts them is disorganized. Because of the dis- members had all gone on vacation in other ways too. The Social Se- organized society in the West, the in the summer leaving the old to curity system goes for a toss since state has to take care of families. the vagaries of nature. And the people are living longer and there The market crash is essentially due State is blamed for not taking care aren’t sufficient numbers to contrib- to the model of consumption with of the old! The slogan of ‘Shop ute towards the Social Security fund borrowings and no savings. till you drop’ is slowly changing to or pay taxes. So the nationalization According to a recent report ‘Shop and get dropped’. Consum- of families becomes a burden on [Wall Street Journal, 10-10-2011], ers are feted and savers are the state. European work culture has nearly half of the U.S. population frowned upon. But the wheel is also deteriorated with even our lives in households receiving gov- slowly but surely turning. Sudden- own Tata complaining about the ernment benefits like food stamps, ly the good old virtues of saving work ethics of British managers. subsidized housing, cash welfare or and thrift are becoming the fash- In UK, the situation is worst Medicare or Medicaid (the feder- ion from Alberta to Auckland. The with alcoholism becoming a com- al-state health care program for the limits to consumption led growth mon problem. The Chief Rabbi poor) or Social security etc. have at last dawned upon the peo- of the United Hebrew Congrega- The unemployment rate in ple. On a global scale, the con- tion in London says, ”There are all many European countries like Spain sumption led growth of some signs of arteriosclerosis of a culture and and Greece is more than 20% and countries like the USA is support- a civilization grown old. Me has taken among youth (aged 16 to 24 years) ed by saver countries in the devel- precedence over We and pleasure today it is nearing 50%. 27 ity country in another 30 years where Spanish and Chinese could become major languages. This could have a tremendous impact in Mid- West and give Southern Bible- thumpers like Rush Limbaugh a field day. This could also give rise to sharper social conflicts and open up the old civil war fault lines. Two reports released in De- cember 2012 in the US will have significant and far-reaching impli- cations for countries like India. Britain has fallen out of love The French are grappling with These reports are: Global Trends with marriage. The 2011 Census the issues of illegitimacy and a fail- 2030: Alternative Worlds, by the shows that the number of married ure of the family system. An ex- US National Intelligence Council, people has fallen to 20.4 million, French law minster had simulta- and US Strategy for a Post- nearly 200,000 less than a decade neous relationships with eight men Western World: Envisioning ago. A quarter of the people in and it was difficult to ascertain who 2030, by the Atlantic Council. England and Wales are single, the father of her child was. In an- The aforementioned two re- while the number of those cohab- other decade, many French children ports tell us something we always iting has risen from 9.8% of the may be able to identify their fathers hesitate to believe till someone population to 11.9 %. Growing only through DNA tests. from the West confirms it for us. numbers of people are also The USA is facing similar is- The reports indicate how China choosing to divorce. sues. In 2010, more than 50% of and India will be more powerful The breaking up of the fam- the children were born out of wed- than the US by 2030. One of the ily has put tremendous pressure on lock and illegitimacy is the new reports also suggests that Asian the state to sustain single parent/ norm. Among blacks, it is 75% and cultures will supersede America’s single women families and also the among Latinos, it is more than 55%. and Europe’s in 20 years as the glo- elderly. This has put their social se- The US faces an unprecedent- bal middle class grows. But it also curity schemes – if at all funded – ed crisis since families have been predicts that competition for re- under strain. nationalized and businesses priva- sources, including food, space and Europe has become secular, tized. Society has become dysfunc- water, will be fierce. which is a euphemism for renounc- tional. This year, more than half the Five trends which will have ing or ignoring the church. For in- births are of non-white children, far-reaching implications for the stance, the recent census in the UK giving rise to the possibility of the West and us are the following: has revealed that there has been a US becoming a non-white major- · The West’s problems are relat- decline of 12% in people belonging to Christianity and 25% of the pop- ulation said they had no faith – an increase from 15% a decade earlier. The UK is also exhibiting ten- dencies in societal behavior more typical of third world countries. For instance, urinating in the streets is becoming a major issue and the town of Chester is using innovative ways to punish offenders like asking them to maintain local heritage sites. 28 ed to the decline of the family alternate institutions emerging. we will continue to try and imitate as an institution and household Under the circumstances India them – including their dysfunction- savings. needs to strategize for the future. al family systems. We should rec- · Demography is increasing the We should recognize that for ognize that we are a civilization and proportion of old people in the most of the Indian elite, their um- not just a market. Today, funds are population. bilical cords are linked to the west. in search of markets and not the · Rising longevity is leading to a Many of them are/were educated other way round. Instead of head- social security crisis which will in the US or Europe, and most of ing global institutions, we should bankrupt governments. them have their children studying prepare to acquire them. · The decline of the Church and or working there. Due to colonial Civilisationally, we are nearer belief systems – both in Europe genes, acceptance and recognition to the East than the West. We and US – could have major by the West is critical for average should take the lead along with implications. middle class Indians. others in the East to create alterna- · The Westphalia Consensus The danger is that we are go- tive institutions to the World Bank, about the sovereignty of na- ing to replicate their failed models the IMF and the UN. The need is tions which are not western/ when they are in decline. They will to recognize that the old debate white is over. try to sell us everything they have, about big business or big govern- These trends have not been and we will buy it because of our ment is passé. Our ability to look dealt with in full detail in the main colonial genes. They will hire more beyond Marx and market into our reports possibly because they are Indians to head global companies thriving communities and bazaars focused more on economics, en- as showpieces in order to pene- will provide us answers to many ergy etc. But the building blocks trate our markets. issues. of any civilization start with the The reality that the West is in Will India, as Aurobindo men- family, and this has become an is- decline and many of its institutions tioned, rise from the ruins of the sue in the western world, without are failing has still not struck us and West? 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Sail- ies were sent to India along with passed on technical ground, Mr. ors of foreign ships used to deposit Browning Pistols by Savarkar Singer, the President in his presiden- arms in the houses of prostitutes at through one Chaturbhuj Amin in tial address approved the spirit of Kidderpore where from revolution- 1908. One copy of the Bomb Man- the resolution. Savarkar was in touch aries took these on payment. Besides, ual was presented to Tilak. Chatrub- with the revolutionaries of Egypt, Abhinav Bharat of Savarkar spread- huj Amin became an Approver in Ireland, Turkey and China. He too ing its branches at Madhya Pradesh, the case against Savarkar in 1910. had contact with Lenin. In 1907, Sa- Karnataka, Delhi and Maharastra, Kharve moved by foot varkar celebrated the 50th anniver- Parallel Revolutionary organisations through Borghat marking points on sary of the war of 1857 in London led by different individuals became the Railway track to destroy trains which he termed as the First Na- active during this time. A tin of gun carrying English Officials through tional War of Independence. “.... powder is mightier than tons of pa- his clock work device to explode in Revolutionary war knows no truce, pers” was the theme they derived a fixed time. This was the first in- save liberty or death,” wrote Savar- from the philosophy of bomb. digenous Time-bomb developed in kar and his pamphlets translated in At Pune Kharve’s group, Kol- India by Kharve. Indian languages were sent to India including the Sikh Regimental cen- hapur group and Mahajan’s group Savarkar in London tres in Punjab. To celebrate the oc- were active. At Nasik both Karve’s Savarkar reaching London in casion, Shyamji published in the In- group and Dharap’s groups were ac- 1906 was vigourously working for dian Sociologist in London a plac- tive. The centres for manufacturing armed rebellion in India receiving ard issued by Dr. Richard Congreve bombs and repairing arms started at assistance from Shyamji Krishna in 1859, protesting against the Pune, Bombay, Nasik, Kolhapur, Verma. Shyamji already founded the Aund, Satara, Yeotmal, Nagpur, Am- thanks giving ceremony held at Lon- Home Rule Society in London in don then for the war against Indian aravoti, Pen, Khanapur, Baroda, 1905 and India House was the cen- Gwalior, Kothura. Basai or Bassein Sepoys in 1857. Dr. Congreve wrote, tre of such activities. “Believing the cause of British in was the Chief centre for manufac- In 1904 Dadabhai Naoroji put- India to be unjust and that of Hin- turing explosives. Patankar had to sell forth India’s case in the Congress dus just as the legitimate effort of a his wife’s ornaments to fund Basai of Socialists at Amsterdam. Mad- nation to shake off an oppressive Bomb Centre. Unlike Bengal they am Bhikhaji Rustam Cama left foreign yoke .....publicly protest the refused to commit political dacoity. for Paris in 1902 and along with thanks giving as an act at variance Savarkar sent P.N. Bapat to Sardar Singh Rana attended the In- with the national profession of a free Paris to learn the technique of ternational Socialist Congress at Stut- people .....and an outrage of all the Bomb-making from Russian Revo- gart on 18 August 1907. In this con- higher feelings of mankind.” A na- lutionaries and secured a Bomb- ference Madam Cama unfruled a tional conference was held in Lon- Manual in Russian Language. It was tricolour flag claiming to be the Na- don in 1908 demanding Swaraj and tional flag of India rejecting Morley-Minto Reforms. and moved a reso- In 1907, at California, the In- lution to free India dian Independence League was from British slavery. formed by Pandurang Khankhoje, Ramsay Macdonald Khagendranath Das, Tarak Ch. Das and other delegates and Abhar Ch. Laskar. Lala Lajpat from England Rai was putting forth India’s case in oppsed the resolu- USA effectively. Despite President tion and left the Roosevelt’s praise for British rule in meeting in protest. India 18 prominent citizens of USA 30 sent an open letter to the President ter his hanging. Birendra Chatto- by a ship called S.S. Morea. As per describing how British rule was padhya published his letter praising his plan Savarkar escaped out of more despotic than Russia, how Dhingra in London. But his timid sis- the ship through a pot hole and money plundered from Bengal was ter Sarojini Naidu sent rejoinders swimming across the English chan- the foundation of great industrial from Hyderabad to “The Times” of nel landed at French territory. But prosperity of Britain and how ex- London claiming herself and her the fate of India was to be decided orbitant taxation ruined Indians as family totally dissociated with her otherwise. So Savarkar was captured salt was taxed 2000 percent etc. brother being loyal subjects of the by the Indian Police in the French British Newspapers and politi- Nizam of Hyderabad, which were territory while seeking political asy- cians were getting nervous to find also published twice. lum before the French police. Mad- intelligent Indian students in the Uni- To Condemn Dhingra’s action am Cama was late to arrive at the versities of England driven towards Indians residing in London con- spot in her Taxi. The ship left for an armed revolt. To socialise Indi- ducteda meeting at Caxton Hall un- India and Savarkar was tried in ans one meeting was held in Lon- der Aga Khan. But the moment Aga Nasik Conspiracy Case. The Govt. don in 1908 where Sir William Lee khan readout a resolution condemn- of France though raised a dispute Warner was hit by a blow from Va- ing Dhingra and declared it being in the International Court at Hague sudev Bhattacharya for calling an passed, Savarkar shouted, “No, not against England for arresting Savar- Indian as Nigger. At Savarkar’s di- at all.” Among the coward-Indians kar inside its territory, softened its rection Madanlal Dhingra attempt- noticing a voice of dissent, Palmer, stand for political considerations. ed to kill Curzon and ex-It. Govern- the English Barrister hit at Savar- The World Court justified Savarkar’s er of East Bengal, Fuller in London, kar. Palmer got the return hit by a arrest. The verdict was condemned but failed. Finally he shot dead Sir stick from Acharya sitting behind by international press. English News- Curzon Wyllie on 1 July 1909 in broad Savarkar when V.V.S. Aiyar aimed papers in England questioned day light in London. This cold-blood- his revolver. Pandemonium started whether Russian could arrest Prince ed murder was like a bombshell shak- and both Indians and Englishmen Kroptekin enjoying political asylum ing the foundation of British Em- ran out of the Hall. A number of in London too? Savarkar was award- pire as it was reported in the interna- Indians who attended the meeting ed two life imprisonments and sent at Caxton Hall to condemn Madan- tional Press. Dhingra’s heart beat was to Andamans in 1910. Savarkar was lal Dhingra fearing retaliation from normal as per the Medical report ob- wearing a batch on which it was in- Englishmen became high dignitar- tained immediately after the murder. scribed, “To be released in 1960.” ies in India afterwards and had the Dhingra’s statement was tak- Savarkar’s brother Babaro was at temerity to call Savarkar as “com- en away by London police. But Sa- Andamans facing deportation. But munal”. Savarkar’s interview ap- varkar smuggled out the statement the two brothers could meet in the peared in the Sunday Chrohicle of from the prison from Dhingra and Cellular Jail only after five years. London thus, ...... ”India has noth- sent the same with Gyanchand Ver- ing to for what to thank the English The Gadhar Party was formal- ma to Paris from where it was unless it be the de-nationalisation of ly established in 1913 at Sanfransis- mailed to various Newspapers the Hindus.” Savarkar’s articles ap- co with Hardayal as its Secretary and throughout the world. Before hang- peared in the “Gaelic American” of Sohan Singh as its President. Gadhars ing, Dhingra could see his statement Irishmen published from Newyork under Gurudit Singh landed in Cal- published with a striking caption, and its translation in Russian, Ger- cutta in a ship called Kamagataguru “Challenge”. It stated, “I believe that man, French, Portuguese and Chi- in 1914. When Police harassed a nation held in bondage with the nese languages were also published. Gadhars suspecting their intentions, help of foreign bayonets is in a per- India’s cause was thus putup on a riot took place in Calcutta. Somehow petual state of war. So when open global scale by Savarkar to inspire some Gadhars succeeded averting battle is rendered impossible to a revolutionaries fighting against colo- arrest by Police and reached Punjab disarmed race, I attacked by sur- nialism in their respective countries. to start revolutionary activities there. prise. Since guns were denied to me, On health ground Savarkar In 1914, Birendra Nath Chat- I drew forth my pistol and fired.” stayed in Paris. But soon he returned topadhya with Sukhthankar formed Dhingra was compared with Plutar- to England and was arrested. At the an association at Berlin to supply ch’s “immortal heroes” even by request of Govt. of India, Savar- arms to India. Lloyed, Churchil and Irishmen af- kar was sent to India from London [To be Conitnued ...... ] 31 NATIONAL Jan-Dhan Yojana can double ATM network The Pradhan Mantri Jan-Dhan Yojana (PMJDY) is turning out to be an opportunity to the slowing ATM (automated teller machine) industry to more than double its network to 3 lakh machines in two years. It is also turning out to be a huge challenge as ATM deployers are seeing a plunge in transaction volumes, causing leading private banks like HDFC Bank and Axis Bank to go slow on machine deployment. The opportunity for ATM companies is that in a few months banks would have added an additional 15 crore RuPay debit cards to the existing 40.9 crore cardholder base (as of June 2014). Ideally, a rise in the number of cards should translate into an increase in demand for ATMs. However, ATM deployment has been running out of steam and new machines are seeing daily transactions of less than 100 – way below the 120 transactions that are required for break-even. ATMs are expected to play a huge role in making the PMJDY viable as this has been the main alternate channel for banks so far. Some say that this could change & credit card-accepting devices can be the new touch point for PMJDY customers.
Sethu Samudram route abandoned mission for employment of women for night work The Centre appears to have formally abandoned with adequate safeguards, amendment of sections 64 the UPA-identified route for the Sethu Samudram ship- and 65 to enhance limit of overtime hours from the ping channel that had raised a huge uproar as it would present 50 hours per quarter to 100 hours per quarter have “damaged” the Ram Sethu or Adam’s bridge. On among others. Another proposal is to empower the its query about exploring alternative route for the ship- Central government to make rules under the Facto- ping channel, Attorney General Mukul Rohatgi has giv- ries Act on some important provisions. en an opinion telling the Centre that the government was 250 Account Holders Identified free to explore alternative routes despite the pendency of the matter in the Supreme Court. However, he ad- Finance Minister Arun Jaitley disclosed in Rajya vised the government to file an affidavit detailing the Sabha that 250 account holders out of a list of 627 decision to explore the alternative route to the ship- names provided by HSBC, Geneva, have admitted ping channel since the matter was sub-judice. The apex to having accounts but the almost the entire opposi- court had in 2007 directed the Centre not to damage tion walked out saying they were “disappointed” with the Rama Sethu in implementing the project. In Feb- his reply to the debate on the issue. Responding to the ruary last year, the UPA government had informed repeated demand for disclosure of the names of the SC that it intended to go ahead with the Rs 25,000 blackmoney holders, the minister said premature dis- crore Sethusamudram shipping channel project, which closure would only help the offenders. He, however, had raised a political storm after it was revealed that deftly sidestepped the Opposition criticism made the mythical Ram Sethu would face dredging. during the day-long debate in both Houses of Parlia- ment and its demand for an apology from Prime Govt to change archaic labour laws Minister Narendra Modi for his “failure” to fulfil his After Prime Minister Narendra Modi’s ‘Make in election promise of repatriating the blackmoney from India” pitch, the labour ministry is “actively” consid- abroad in 100 days and distributing Rs 15 lakh to ering to amend several archaic provisions in labour each citizen. laws, including Factories Act, Apprenticeship Act and Replying to the repeated taunts of the Opposi- Minimum Wages Act. The BJP government is also tion about the 100 day deadline by Modi during the considering amending the Child Labour (Prohibition election campaign, he said, “you may have no satis- and Regulation) Act to bring it in tune with the Right faction about what we have done in 100 days. But we to Education (RTE) Act, which has been operational have done more than any other government has done. since 2010, making education compulsory for all chil- We have done a lot.” He hit back at opposition say- dren up to the age of 14 years, Labour Minister ing, “all I have said is we can have endless debate on Bandharu Dattatreya told Rajya Sabha. the reasons for your defeat in the elections or the best Elaborating on the proposed amendments in way to punish the offender.” “Populism and sarcastic Factories Act (1948), the minister said there are pro- comments are not response and solution to the is- posals to amend section 66 of the Act relating to per- sue,” he told the Opposition members. 32 National
Set up Manufacturing Units in India To bridge the trade gap between the countries which stood at $36 billion in 2013-14. India asked Chinese companies to invest here and set up manufacturing units. Expressing concerns over ballooning trade deficit with China, Secretary in the Department of Industrial Policy and Promotion (DIPP), Amitabh Kant, said that huge scope is available in India for Chinese firms to relocate their manufacturing units.”It is important that Chinese companies come to invest in India because the trade imbalance is unsustainable in the long run. It will be difficult to continue this business unless and until Chinese companies relocate and manufacture in India and from India penetrate the global market,” Kant said. He was addressing Ficci’s India - China (Zhejiang) Business Cooperation Conference. Jack Ma, founder of the world’s biggest e-commerce firm Alibaba was also present at the function.The bilateral trade stood at $65.85 billion in 2013-14. India’s imports from China were valued at $ 51.03 billion while exports were $ 14.82 billion in that period. Kant said that Indian government has taken a series of steps to improve business climate and ease of doing business.There is a need for a closer economic relationship between the countries to promote regional trade and development, he said, adding trade and economic relationship has seen a lack of progress in the last few years. Incentivising solar panel installation IDC said in a statement. With Prime Minister Narendra Modi bullish on "The Indian smartphone market outshone other greater usage of unconventional sources of energy, emerging markets in the Asia Pacific region in terms especially solar energy, the Ministry for New and Re- of quarter-over- quarter growth. This is the second consecutive quarter of more than 80 per cent y-o-y newable Energy (MNRE) is learnt to be in talks with growth for smartphones, reflecting robust end-user the Finance Ministry for incentivising home loan seekers demand," it added. to install roof-top solar panels. Samsung continued to lead the smartphone mar- Media reports say that discussions between the ket with 24 per cent share, followed by Micromax banking division of the Finance Ministry and MNRE (20 per cent), Lava and Karbonn (8 per cent each) are being held on exploring the possibilities whether a and Motorola (5 five per cent).”With six per cent con- small component of home loans could be earmarked tribution in the overall smartphone market, phablets for setting up solar panels on under construction hous- (5.5-6.99 inch screen size) are observed to be hitting a es. This step can go a long way in incentivising greater plateau,” IDC India Research Manager Client Devic- installation of solar panels on roof-tops. A 1 kw of es Kiran Kumar said. The total handset market in In- solar PV installation roughly costs under Rs one lakh dia grew nine per cent to 72.5 million units in the said and generates 4 to 5 units a day. Such installations take quarter, while it was higher by 15 per cent quarter- up roof space of about 10 to 12 square metres, in- on-quarter.Feature phone segment, however, declined formed industry experts. Amid falling interest rates nine per cent year-on-year to 49.2 million units, but and foreign exchange rates stabilizing, the cost of cap- was higher by 10 per cent when compared to the ital for renewable projects will gradually come down, April-June 2014 quarter. he had said at that time. Looking at this scenario, the Government has increased the target of solar gener- 68 percent respondents say yes ation to 100,000 mw by 2022. to Made-by-India call of SJM India fastest growing smartphone MKT India continues to be the fastest growing smart- phone market in the Asia Pacific region, with about 82 per cent growth in the July-September quarter of 2014 over the same period last year, according to re- seach firm IDC. The growth in sales is being driven by increasing preference of consumers to upgrade to smartphones as well as shorter refresh cycles. The ship- ments grew 82 per cent year-on-year to 23.3 million units in the third quarter of this year, while it was higher by 27 per cent on a quarter-on-quarter basis, 33 INTERNATIONAL US business community to wait and watch Despite the successful India-US Trade Policy Forum meet in New Delhi, the American business community has said it would wait and watch on Modi government’s trade policies, particularly the areas of concern. This was the first trade policy meeting between the two countries after a gap of four years. US Trade Represen- tative Michael Froman lead the American delegation while Commerce and Industry Minister Nirmala Sith- araman represented India at the talks. “Only then can the United States and India reach the full potential of their economic relationship. We will continue to engage at every level to urge progress and results toward a fair and level playing field in US- India trade,” the statement said. The statement also thanked Froman and his team for their hard work in re- starting the Indo-US Trade Policy Forum after a four-year hiatus and for advancing meaningful conversa- tions with India about longstanding and new barriers US business are facing in India. Highest Jobless claims in US asserting he acted in self-defence and that his con- The number of Americans filing new claims for science was clear. unemployment benefits last week rose to the highest No Funeral prayers for war criminals level since September, but the underlying trend re- mained consistent with a firming labour market. Initial Bangladesh has said it will not allow funeral claims for state unemployment benefits increased 21,000 prayers for any of the war criminals, sentenced to to a seasonally adjusted 313,000 for the week ended death in the country’s 1971 war of independence November 22, the Labour Department said. It was against Pakistan, to be held in capital Dhaka. The coun- the first-time since early September that claims broke try’s Liberation War Affairs Minister Muzammel above the 300,000 threshold. The four-week moving Hoque said that no more Namaj-e-Janaza of any 1971 average of claims, considered a better measure of la- war criminal will be allowed to be held in Dhaka. bor market trends as it irons out week-to-week vola- “Many freedom fighters sacrificed their lives tility, remained below 300,000 for an 11th straight during the war of independence. No Namaaz-e-Jan- week, a sign that the jobs market was improving. aza were held even for one per cent of them,” Hoque said while speaking at the “Bijoy Mela” — a victory Ferguson protests in America fair, celebrating Bangladesh’s independence. “Animals Thousands of people took to the streets across ate their decomposing corpses. That’s why no more America as protests over the Ferguson grand jury de- Janazas of war criminals after their execution will be cision not to indict white police officer Darren Wilson allowed in Dhaka,” he was quoted as saying. for the shooting death of black teenager Michael Brown A total of 11 people have been sentenced to quickly spread from coast to coast, sharpening the ra- death for committing crimes against humanity while cial divide. Ferguson town itself witnessed a second siding with Pakistani troops during Bangladesh’s 1971 night of unrest, but the incidents of violence and ar- Liberation War, since the war crimes trials were initi- son were kept within check by the massive deploy- ated in 2010. ment of National Guards after the free run that riot- ers were allowed to have the previous night. Alibaba will invest more in India African-Americans, along with a sprinkling of Jack Ma, China’s richest man and founder of e- white Americans and civil rights activists, staged pro- giant Alibaba, has set his eyes on India. He has de- test marches in as many as 170 cities across the nation, ployed a high-level team to increase engagement with demanding indictment of Wilson and justice for India, promises to invest more here and is likely to Brown. President Barack Obama, renewing his ap- hire Indian talent. Ma, who addressed Indian busi- peal for peaceful demonstrations after the widespread nessmen at a Ficci event, said: “Of course, we will arson and looting in Ferguson, spoke of the separate invest.” This, after he was asked if his company would investigation being conducted by Attorney General pump in money given that online commerce is on a Eric Holder. surge here. In the midst of the angry demonstrations, po- The Chinese businessman, who started Alibaba in lice officer Wilson spoke out publicly for the first time, 1999 after giving up on teaching, raised a record $25 34 International
Saarc business traveller card Prime Minister Narendra Modi proposed a Saarc business traveller card for making it easier for traders and merchants in the region to travel and access one another’s markets. “India will now give business visa for 3-5 years for Saarc. Let’s make it even easier for our businesses through a Saarc business traveller card,” the prime minister said as the two-day, 18th Saarc Summit began at Kathmandu. According to Modi, intra-regional relations become stronger as connectivity is increased and people- to-people contacts encouraged. He said this will also provide for boosting opportunity for tourism in the region. “We could begin with the Buddhist circuit, but we don’t have to stop there.” In the area of health-based tourism and connectivity within Saarc region, the Indian prime minister added: “Those coming to India for medical treatment, India will provide immediate medical visa for the patient and an attendant.” billion in the US. The 50-year-old, who is worth near- Corporation, a major producer in the province. ly $25 billion, is upbeat on India as the country is the In the blaze, 26 mine workers were killed and second-largest sourcing centre after China, a statement 50 others injured, state-run Xinhua news agency re- that surprised many. ported. Fuxin Coal said the rescue is over and all the Ma said spices, chocolates and tea were the top injured workers have been hospitalised. Among those three products sourced from India and acknowl- taken to hospital, mostly with burns and respiratory edged that the market had been ignored in the past. injuries, 30 were seriously hurt and four were in life- “Indians suppliers are smart. They are the second- threatening condition. During initial investigations, it highest Alibaba users after China. They use our site was found that coal dust in a shaft was ignited shortly often. We are improving technology (to transform after a weak earthquake with a magnitude of just 1.6 Alibaba) into a platform that’ll help small business in hit the mine. Local Government is further investigat- India,” he said. Close to 4 lakh Chinese buyers buy ing connections between the tremor and the fire. from India through Alibaba. Indian Cardiologist Honoured Girl killed for listening to loud music An eminent Indian cardiologist was conferred A sixteen-year-old Pakistani girl was gunned the degree of Doctor of Science (Medicine) for his down by her uncle following a row over loud outstanding contributions to public health by the Uni- music. The incident occurred in Matan Kallaan vil- versity of London at a ceremony at the Buckingham lage of Chakwal district in Punjab province. Rehana Palace. K Srinath Reddy, president of Public Health Bibi was listening to music at her home when her Foundation of India (PHFI), was given the honour uncle asked her to reduce the volume, a cop said. The by Princess Royale of Britain, Princess Anne, who is girl refused, leading to an argument between the two. also the Chancellor of the University. The man, in a fit of anger, whipped out a gun and “While it may be an award given taking into con- shot her dead and fled. The deceased girl’s father reg- sideration my cumulative contribution to public health istered a case against the killer who fled the village and cardiology, it is also recognition of India’s great after the incident.Pakistan is among the countries where relevance and stature in dealing with global health, in- violence against women is rampant. Every year doz- creasing inter-connectivity and inter-dependence in the ens of women are killed in the name of honour. field of health,” he said. Reddy has headed the PHFI since its inception 26 killed, 50 injured in China in 2006. Reddy, previously, was head of Cardiology At least 26 workers were killed and 50 others Department at the All India Institute of Medical Sci- injured when a major fire engulfed a coal mine in ences. Reddy, a Padma Bhushan awardee, has been China’s northeastern Liaoning province soon after a acclaimed as a global leader in tobacco- control and mild earthquake jolted the region, in one of the worst played a key role in the development of WHO’s mine accidents in the country in recent years. The fire Framework Convention on Tobacco Control while was noticed in the early hours at the coal mine under representing India in international treaty negotiations Hengda Coal, a subsidiary of state-owned Fuxin Coal during 2000-2003. 35 WTO
WTO adopts contentious Trade deal the EU on imports of certain polyethylene terephtha- late (PET) from Pakistan and regarding certain aspects WTO has announced the adoption of TFA after of the investigation underlying those measures. Ac- being approved by its 160 member nations in Geneva cording to Pakistan, the EU appears to have acted in- after months of deadlock, according to a statement consistently with several articles of the Subsidies and released by WTO. TFA was formulated in December Countervailing Measures Agreement in determining that 2013 during a WTO conference in Bali amidst wide Pakistan’s tax law and other schemes and programmes spread protests by civil society members and stake hold- in certain cases constitute a subsidy that is contingent ers. The deal had remained stuck in limbo after dis- upon export performance. PET is used in synthetic fi- agreements between the U.S. and India over clauses related to public stockpiling of food for poor. The im- bres and in beverage, food and other liquid containers. passe was broken earlier in November after India and Brazil rejects Tax panel the US announced that they have “successfully resolved” At the meeting of the Dispute Settlement Body their differences on the issue of public stockholding on 18 November 2014, Brazil rejected the request by for food security purposes. Bali Conference had pro- the European Union for a panel to study the dispute vided for only a four-year “peace clause” during which over taxation and charges applied by Brazil to the auto- no member country would be legally barred from im- mobile, information technology and other sectors. Bra- plementing food security programmes even if the farm zil rejected the first-time request for a panel by the subsidies resulting from it breached the caps imposed European Union over this dispute. The EU said that by Agreement on Agriculture (AoA). India wanted to the dispute concerned a number of programmes in the make sure that this protection would be available in automobile, information and communication technolo- perpetuity, should a permanent solution to the prob- gy and automation sectors that granted domestic pro- lem of the WTO agriculture subsidy caps not be found. ducers certain tax advantages consisting of the exemp- AoA currently limits the value of farm subsidies tion from, or reduction of, taxes and charges levied on by members at 10 per cent of the total value of their the sale of goods. The advantages resulted in a higher crop production. The subsidies, in turn, are computed in tax burden on imported goods and created incentives relation to global “reference prices” fixed at 1986-87 to source locally in Brazil and thus were discriminatory levels – when global wheat prices were $ 130-$ 140 a and aimed at import substitution. Brazil also had tax tonne. India has been demanding a revision in the sub- exemption schemes for Brazilian companies meeting sidy calculation methodology to reflect current prices, certain export targets, contrary to the prohibition on which are in the $ 225-$ 230/tonne range. export-contingent subsidies. Brazil said that its measures Trade rules & nutrition objectives were consistent with its multilateral obligations. In a statement to the Second International Confer- Extra time to reduce strain ence on Nutrition in Rome, Deputy Director-General India and the United States, noting that the dis- David Shark emphasized the critical importance of pute settlement system was facing a significant volume multilateral cooperation on nutrition. “The WTO remains of disputes resulting in a backlog for the Appellate Body, more than ever fully committed to participate in and to made a joint request to the Dispute Settlement Body contribute to this multilateral cooperation,” he said. WTO (DSB) to agree to provide additional time for the adop- takes the issue of nutrition very seriously. Malnutrition tion or appeal of the panel report in this dispute. in its various forms, including hunger and obesity, is a India said it acknowledged the current strain on the tremendous challenge that affects us all. So at the outset Appellate Body and took seriously its responsibilities to let me commend the adoption of the Rome Declaration cooperate to alleviate that strain. India added that it con- and Framework for Action by this Conference, he add- sidered that the additional time would provide greater ed. it is clear that trade rules and policies can play a flexibility in scheduling any possible appeal of the panel positive role in addressing nutrition objectives, as you report in this dispute. The US expressed its hope that have recognized in the Framework for Action. members in similar circumstances would take the same constructive approach which would help the Appellate Pakistan files dispute against EU Body manage its workload. The DSB agreed that no lat- Pakistan has notified WTO Secretariat of a re- er than 26 January 2015, it would adopt the report of quest for consultations with the European Union re- the panel in the dispute unless either party to the dispute garding the imposition of countervailing measures by notifies the DSB of its decision to appeal it. 36