Swadeshi Vol-14, No. 2, Maag-Phalgun 2065 February - 2009 PATRIKA CONTENTS
cover page
COVER ARTICLE 4 PATENTS 22 We need to debate and perhaps comprehensively Indian Patent System is being abused for narrow overhaul the concept of corporate governance, urges commercial advatnage, explains SH. B.K. KEAYLA. MR VENKATESH. SECURITY 25 Make government’s audit compulsory for all big The soldier on ground is suffering pangs due to bad private sector companies suggests DR. ASHWANI equipment, inadequate pay and pathetic living MAHAJAN. 7 conditions, complains JASBIR SARAI. INTERVIEW 9 BOOK REVIEW 28 Free, frank and candid views articulated by “The world beyond marx and market” is reviewed SH. ARUN OJHA JI, National Convenor SJM in By G. Raina. conversation with the Editor SWADESHI SAMVAD 30
ECONOMY 13 LETTER 2 The fiscal package announced by the government NEWS 32 will succeed only if the money reaches common man WTO 36 and not to the coffers of corporates and contractors says DR. BHARAT JHUNJHUNWALA. EDITOR Ajay Bharti DEBATE 16 PRINTED AND PUBLISHED BY: It is matter of time when Capitalism collapses. The Ishwardas Mahajan on behalf of Swadeshi Jagaran Samiti, question before us is that shall we wait till its collapse, 'Dharmakshetra', Sector-8, R.K. Puram, New Delhi-22, or should we, on the other hand, hasten the process, EDITORIAL OFFICE asks SH. D G BOKERA. 'Dharmakshetra' Sector-8, Babu Genu Marg. R.K. Puram, N. D.-22
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February - 2009SWADESHI PATRIKA 1 Letters
HURT SENTIMENTS Quote-Unquote
Swadeshipatrika is an important tool of Swadeshi movement. Followers of Swadeshi are waiting for patrika for both information and inspiration. It is unbelievable to think that there will be any mistakes or lapses in publications like swadeshipatrika. It is with this backdrop that I am writing with a sense of disbelief that January issue of the swadeshipatrika has deeply hurt the sentiments of thousands of activists like me. Babu Ghenu the leading light of Swadeshi who sacrificed his life for the cause of Swadeshi was miss spelt as Baba People today praise western music but Ghenu. It is a grave mistake and we expect it will not be repeated. I will however hasten to add that the issue in general was have forgotten the treasures hidden in informative as well as attractive. Photograph on cover in particular their country. was a treat. The historic moment of transition in SJM has been recorded Pandit Hariprasad Chaurasia for ever in the memory of those who were not able to witness it happen Renowned Flute player in Bangalore. Congratulations for the same. Arvind Singh Rajasthan FOOD SECURITY
Kindly refer to the article Outsourcing Food Production by Dr. Devinder Sharma in the latest issue of the Patrika. It is a very serious issue and Dr. Sharma has in a lucid way tried to forewarn us People have become selfish and about the events that may unfold in front of us in our own life time. materialistic,which has led to the Food security is a very serious challenge for a country like India economic slowdown. that not only has a huge population of its own to be taken care of but is also vulnerable with the type of porous borders we are having on all HH.Dalai Lama sides. I am afraid the fruits of our entrepreneurship and hard work will go down the drain with illegal influx of starving population from neighboring countries. To add to the agony is the fact that our cultivable land is vanishing on account of its use for industrial and real estate purposes. I take it as a threat as serious as Jihadi terrorism, if not worst. Jawahar Dass Sahibabad (UP) I want to tell Paris that I donot need their shelter. That there isa place for me in a EDITORIAL OFFICE vast country like India. SWADESHI PATRIKA Taslima Nasreen ‘Dharmakshetra’, Sector-8, Rama Krishna Puram, New Delhi-22 Bangladeshi Author Tel. : 26184595, E-Mail: [email protected] For subscription please send payment by A/c payee Cheque/Demand Draft/ Money Order in favour of ‘Swadeshi Patrika’ at New Delhi. Annual Subscription : 100/- Life Membership : 1000/- 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. Pakistan should seriously consider the evidence handed over by India on the Mumbai attacks. Nawaz Sharif Former Prime Minister, Pakistan.
2 SWADESHI PATRIKA February - 2009 Swadeshi E February - 2009 PATRIKA D Lost Trust I There is nothing new about manipulations and irregularities in management of corporates anywhere in the world including India. But the scale, brazenness and intensity of these shameful activities that is tending to be almost a regular news now, particularly after the so called T liberalization of world economy is astonishing. Satyam and Ramalinga Raju are latest and nearer- to-home names that have been added to a long list of fraudsters like WorldCom, Enron, Tyco, O Madoff, so on and so forth. These are just few names that have cropped up in recent times in connection with some of the most well-known corporate or shareholder frauds. But it no longer R is about Satyam or any of these names. Implications of corporate deceit are far wider than being presumed and discussed. It is the credibility, the trust in government and its ability to administrate, that has been hit hard. Corporate governance, we are told, is ‘an internal system encompassing I policies, processes and people, which serves the needs of shareholders and other stakeholders, by directing and controlling management activities with good business savvy, objectivity and A integrity.’ But that is the book not practice anymore. ‘Sound corporate governance is reliant on external marketplace commitment and legislation, plus a healthy board culture which safeguards L policies and processes’, adds the book. None of these factors proved worth the paper they have been printed upon. The principal stakeholders in any corporation are the shareholders, management and the board of directors. Instead of taking care of their stakes all of them, at least in the case of Satyam, seem to have been busy in misusing their positions to create assets in different formations. Other stakeholders include customers, creditors (e.g., banks, bond holders), employees, suppliers, regulators, and the community at large are reduced to mere spectators.. It was expected that being direct stakeholders everybody will play his/her role dispassionately and reliably. But that did not happen. Satyam fraud has taken place at a time when we have been patting our backs for escaping the devastating effects of global financial tsunami to large extent. The credit for the same is given to the sound regulatory mechanism. So one can only imagine that if a Satyam like fraud is possible in well protected and abundantly secure environment what can we expect when markets are further liberalized and de-regulated, as is being pursued by political class. Satyam is in fact a wake up call for government as well as the Indian Inc. It is in their own interest that corporate leaders must come forward and lead the campaign to clear the mess. Denial will not resolve the crisis. People at large do believe and not without reason that private business is driven by profit motive at any cost. Making profit is not a crime. But it has to be legally and morally tenable. Corporate social responsibility is not just a on paper formality. It is a serious responsibility which otherwise is going to come back to affect the business and profit itself. In that way it makes a sound business sense. Similarly abiding by the rules of law can not be convenience. Respecting law has to be habit. History substantiates the fact that innovation, entreprenurship and advancement in any field cannot be suppressed by laws and regulations. Genuine experimentation is infact better served by properly defined rules of the game. Satyam sham is a wake up call for the government also. First, it is a clear and telling comment on the way things are being run. Not only does our economic intelligence gathering stand exposed, regulators like SEBI, auditors and independent directors have also lost the confidence of the people of this country. How it is possible for these institutions on which a resource poor country like India is spending a fortune, to fail in detecting the scam beforehand. People are justified in thinking that it is either incompetence or connivance. In either case it is the primary responsibility of the government to come clean and restore the confidence in regulatory institutions. To eliminate the possibilities of re-occurrence governments should not hesitate to further strengthen the regulatory apparatus. Government has to be a facilitator but that is not the only role it ought to play. Its function as an arbitrator and authority to penalize wrong actions is as fundamental as that of a catalyst. Present day rulers are incapable of performing the multiple tasks required of them. It is time to choose the right people for the right job. Will India make the right choice at the given opportunity?
February - 2009 SWADESHI PATRIKA 3 COVER STORY Corporate Governance? What a Joke!
The Satyam issue has brought out the soft underbelly of our corporate governance model, exposing in the process the fragility of adopting imported ideas. We need to debate and perhaps comprehensively overhaul the concept of corporate governance, urges MR Venkatesh.
opyright, interestingly, is often interpreted as a right Cto copy by Indians. Let me elaborate. Most Bollywood movies are in effect Hollywood hits remade, with a mother or sister character added to indigenise the same. Scrape them a little, compare them a bit or even give them a cursory glance, and you would know instantly what I mean. This is not restricted to the world of cinema. In fact, most of our ‘well researched, extensively debated and heavily studied’ reports of some of the high-power committees appointed by our government are not original works. Bluntly put, they are adopted, or government that has gone on to competition law and the adapted, from reports on the same shape and de-shape the economic accounting standards belong to this subject already published in other policy formulations of India one genre. countries, mostly Western can readily trace its origins to an The concept of ‘corporate countries. authentic source abroad. The governance’ is one such idea. By now one can safely argue capital adequacy norms, the Consequently, while we proceeded that there is a complete grammar, to ‘adopt’ the idea we failed to a well-defined code, for adopting internally debate the various such committee reports in India. Most of our ‘well models that would be suitable to This practice of somehow willingly researched, extensively the Indian business environment. becoming a carbon copy of others debated and heavily Neither did we bother to observe has been our Achilles heel since studied’ reports of some the external debate world over on Independence. This has only been of the high-power the various models of corporate accentuated in the post- governance. committees appointed by liberalisation era. Yet, this idea was celebrated as No wonder, in the past fifteen our government are not the most original idea in our years, for every report of the original works. reforms process by finance
4 SWADESHI PATRIKA February - 2009 COVER STORY professionals, chartered accountants and the company secretaries. In the process we never debated its origins, potency or efficacy in the Indian context. Sadly, the very idea was marketed as ‘professional opportunities’ by various professional bodies. It would thus be difficult even to point out three genuine differences between the committee report that went on to prescribe the code for corporate governance in India and the original report on corporate governance in the United States — the Cadbury Report.
The context to the issue The latest imbroglio involving about the company come out into the model that effectuates the idea. one of India’s largest IT the open, let us not forget that it Professor Jayant Rama Verma companies, Satyam Computer won the prestigious Golden of IIM Bangalore had extensively Services, has virtually discredited Peacock Global Award for commented on the unsuitability of the concept of corporate excellence in Corporate the Western Code of Corporate governance. Governance. Governance in his well researched Satyam, as it is widely reported The company was named the paper on the subject titled sought to invest into another winner by the World Council for ‘Corporate Governance in India - company involving a conflict of Corporate Governance as recently Disciplining the dominant interest for its promoters. This in as in September 2008! shareholder’. This was way back in turn involved a change in the That, in effect, is corporate 1997. fundamental character of the governance in practice for you! Pointing out to the company and utilization of fundamental flaw in our virtually its entire cash balance. Not the idea but the model is understanding of the concept of Satyam was also being accused a problem corporate governance in India by by the World Bank for bribing its Naturally, the debate once drawing ‘heavily on the large employees to get certain contracts again arises as to the very idea of Anglo-American literature on the awarded in the company’s favour. corporate governance and the subject,’ he argued that the issues While these are allegations at model that is suitable for a country involving corporate governance this point in time, it may be noted, like India. The issue, let me problems in India are different, that the company had approached reiterate, is not the idea per se but requiring different solutions. suitable independent professionals According to him, the to get the necessary clearances governance issue in the Anglo- under the extant law of the land as Satyam has Saxon world aims essentially at well as appoint independent disciplining the management which directors. Ostensibly, the idea is to discredited the concept has ceased to be effectively ‘comply’ with the code of accountable to the owners. In of corporate corporate governance on paper. contrast, the problem in the Indian What is interesting to note Governance. corporate sector, he pointed out, here is that as negative reports is that of disciplining the dominant
February - 2009SWADESHI PATRIKA 5 COVER STORY shareholder and protecting the a bear. minority shareholders, as it is In the West, we are talking of vindicated in the recent Satyam an ownerless, CEO-driven case. paradigm. In India, it is still family- To understand the issues that controlled, owner-driven drive the idea of corporate paradigm. CEOs do not matter governance in the West, a brief much in the management of the reference to their arrangement is company. Yet, we talk of a inevitable. Having successfully standard, global prescription to worked over the decades to diverse situations. separate ownership and Needless to emphasise, the management, owners, (especially, solution to these problems in India institutional owners) realised that shareholders’. lies not within the company, but they are unable to exercise effective And Professor Verma rightly outside. This is precisely what control over the management or concludes, “The board cannot even happened in the Satyam case. the board. in theory resolve this conflict” and The alleged infraction of law Capturing the entire issue that “some of the most glaring arose despite independent rather succinctly, professor Verma abuses of corporate governance in directors and was stopped not by points out, “. . . the management India have been defended on the such directors but by forces outside becomes self-perpetuating and the principle of shareholder the company. composition of the board itself is democracy since they have been It may be noted that the very largely influenced by the likes and sanctioned by resolutions of the idea of independent directors is to dislikes of the chief executive general body of shareholders.” ensure commitment to values, officer. Corporate governance ethical business conduct and about reforms in the US and the UK have Need to re-think making a distinction between focused on making the board By now it is increasingly personal and corporate funds in independent of the CEO.” obvious that the very concept of the management of a company. Virtually concurring with corporate governance modelled on Yet, most independent professor Verma on this paradigm, the Western system is un-workable directors have become sidekicks Wikipedia too points out, in a country like India. Little do we for the management, eying their “Perverse incentives have pervaded realise that such efforts are akin to commission and fees, forgetting many corporate boards in the taking a hair of an elephant, their very purpose of appointment. developed world, with board transplanting it on the head of a In the process, they implicitly members beholden to the chief bald man and making him look like transform into dependent executive whose actions they are directors. The billion-rupee intended to oversee.” It is this question remains: who will monitor predicament that necessitated the Even public these independent directors and very idea of corporate governance penalize them? with independent directors in the sector units that failed One may recall that it was not West. to appoint independent long ago that one of the Ambani In contrast, the issues in India brothers made a 500-page directors and violated are entirely distinct — primarily complaint about corporate due to our overall social-economic some of the code of governance violations in a conditions. Therefore the issue in corporate governance, company in which he himself was Indian corporate governance is not were exonerated by the a director. Subsequently, nothing a ‘conflict between management Securities and Exchange was heard about it. and owners’ as elsewhere, but ‘a Board of India under Similarly, it is reliably learnt conflict between the dominant pressure from the that even public sector units that shareholders and the minority respective ministries. (Continued page 8)
6 SWADESHI PATRIKA February - 2009 COVER STORY
atyam Computers has been forbidden forthwith. Government one of the main culprits. CEO of one of the major contributor has even ordered an enquiry into the company is serving 24 years of Sto IT revolution is India. Till the affairs of 8 group companies imprisonment, but at the same time now a company which had been of Satyam. SEBI, Company Law auditing company Arthur fourth largest Software Company Board and Institute of Chartered Anderson has lost its existence of India came to ground on Accountants of India have also world over after the incident. In the January 7, 2008 with its chairman initiated their enquiries on their present scam auditing company is Ramalinga Raju conceding that he own.. But this is a fact that Price Waterhouse Cooper. Experts has systematically fudged the shareholders net worth has been believe that the company could not accounts of the company. Cash eroded by thousands of crores and have done a fraud of this Satyam Fraud: Emerging Issues
Learning lesson from the present case and to avoid repetition of such incidents, there is a need to make government’s audit compulsory for all big private sector companies suggests
DR. ASHWANI MAHAJAN. and bank balance as reflected in the 51000 of workers (or may be less magnitude without the connivance accounts, actually does not exist. by 10,000) are at the verge of losing of the auditors. Price Waterhouse According to a rough estimate total their livelihood, exchequer and the Cooper is also escaping to speak fraud is to the tune of around 8000 economy would he at a great loss. on the issue. crores. Fact is that when Satyam was Keeping in view the interest of ROLE OF AUDITORS fudging its accounts in, the auditing the investors, employees and the IT But real question is much company was certifying these sector at large, government different and pertinent. Satyam accounts to be correct. Auditor is recently reconstituted the board of fraud may be first of its kind in obliged to minutely inspect each Satyam Computers, with a view to India, but not the first such fraud and every transaction of a firm and control the damage. It has even of the world, where fraud was certify the same to be correct and decided to give away a package to given effect by forging the books as per rules. These certified revitalize the company starving of of accounts. Enron an American account statements are then sent funds to even pay the salary of its company did exactly the same. In to the shareholders. Thus we can 51000 employees. that case auditors were named as say that fraud has not been When this fraud was brought committed by Ramalinga Raju to light by Satyam’s chairman Pricewater house alone, auditing company must also himself, the price of the share have been fully involved in the tumbled by about 80 per cent in a must have been same. It is worth noting that Price day. In the international market, Waterhouse Cooper, auditing firm price of its ADR depreciated by 90 fully involved of Global Trust Bank (USA) also, per cent and its trading was is facing legal proceeding in the
February - 2009SWADESHI PATRIKA 7 COVER STORY case of not only certifying fudged parties. accounts of the bank but also There is a need to Learning lesson from the giving it a good rating. examine the present case and to avoid repetition of such incidents, there is a need ROLE OF SEBI constitution and to make government’s audit Constituted under the Act of functioning of compulsory for all big private Parliament, Security Exchange sector companies on lines of Board of India (SEBI) is a SEBI. public sector companies. We know regulatory body of Indian share Recently a company made Initial that strict auditing of public sector and bond markets. It is expected Public Offer (IPO) and lakhs of companies by Comptroller and from SEBI that no company or crores of application money which Auditor General of India (CAG) broker is allowed to act against the should have gone to an has been reason why there has interests of the shareholder. In fact independent agency went into the never been any big scam in public existence of a regulator gives a accounts of the company and sector companies. confidence amongst the SEBI could not even issue a Secondly there is a need to stakeholders in that sector. clarification in this regard. examine the constitution and Existence of SEBI naturally gives All or any information functioning of SEBI and make a confidence to the investors in the regarding all transactions of a suitable changes wherever needed share markets. But this regulating company, issue of capital, sale- to enable SEBI to meaningfully agency has failed at various purchase of shares in either discharge its duty as a regulator in occasions. Thousands of available with SEBI or it could be the stock market. companies vanished eating away asked for by it. Then why SEBI All multinational and Indian lakhs of crores of rupees of could not get a clue about such a auditing companies which are investors and SEBI could not do big fraud. We should not conclude found to be indulged in fraud in any thing. Sometimes tiny cases of that fault lies with the officers of any part of the world, should be insider trading by companies are SEBI. Perhaps constitution of placed under the scanner and their investigated by SEBI, fraud of SEBI as provided by the Act of the acts be investigated in India . This lakhs of crores of rupees gets Parliament itself forbids SEBI to world be a proactive step in the easily escaped from its scanners. proactively act against defaulting interest of the nation at large.
(Continued from page 6) Registrar of Companies and the Corporate Governance . . . Sebi, especially the former — to deal with such issues. failed to appoint independent rarely used and mostly misused or With a turf war raging between directors and violated some of the abused. the two on who should administer code of corporate governance, The solution, therefore, to corporate governance, one were exonerated by the Securities ensure proper corporate wonders who will bell the cat? and Exchange Board of India governance is to make these The Satyam issue has suddenly under pressure from the respective institutions and laws functional, brought out the soft underbelly of ministries. not to merely adopt solutions of a our corporate governance model, So much for institutional different country and economy exposing in the process the fragility efficacy, especially when it involves worked out in a different context. of adopting imported ideas. large corporates and PSUs. With the very concept of Obviously, we need to debate and Nevertheless, there are enough independent directors fast perhaps comprehensively overhaul provisions in the Indian becoming a mockery, we need to the concept of corporate Companies Act to penalise errant think of the alternatives. For governance. The moot point is directors. The problem is that most starters, we need to strengthen whether we mentally prepared at of them are in the statute book, external institutions — the least now?
8 SWADESHI PATRIKA February - 2009 INTERVIEW UPA has failed to fulfill its promises: Arun Ojha
Shree Arun Ojha visited Central Office of SJM for the first time after assuming responsibility as the National convener of Swadeshi Jagaran Manch on 10th of January 2009. He was in National Capital for a couple of days. Swadeshipatrika managed to have a chat with Sh. Arun ji on different issues. We reproduce free, frank and candid views articulated by Sh. Arun Ojha Ji in conversation with the Editor Ajay Bharti.
Q. How do you explain the change in SJM at a time when it is becoming a forceful & legitimate national voice? How will the change at top affect the working of SJM? Arun Ojha ji: Swadeshi is an uninterrupted current that can not and will not be thwarted by the change in positions of individuals here and there. Changes, in fact, bring encouraging consequences when handled appropriately. We in SJM have the methodology of taking decisions collectively. We have jointly decided the course of direction of Swadeshi movement in accordance with the requirements of the time in past and will continue to do the same in future also. The change in responsibilities also is a consequences of Globalisation on disadvantageous collective decision. It, therefore will bring positive sections of the society like farmers, artisans, small impact on the movement. New dimensions will be time retailers, SSI’s and unorganized sector will be added to make the movement more strong. accelerated and made an integral part of Swadeshi Movement.. These are the areas of our strength Q. What are these new which are sustaining economy, dimensions that you think will be society, security and even economic added? growth. To comprehend the impact of Arun Ojha ji: Economy has been rapidly changing global economic the major area of focus of Swadeshi situation on these core sectors we will movement that will remain so in future have a regular and well organized also. But at the same time SJM will institutional mechanism. Security also undertake efforts to generate a threats, both internal and external, to strong Swadeshi attitude in other the economy and infrastructure have walks of national life. Language, not been properly appreciated as yet. Culture and Value System for This will also be the focus area of our example are the area’s that will attract future activity. our attention. Pace of the Research and Documentation on various issues Q. What are the Major related to the economy particularly the Challenges that, in your opinion,
February - 2009SWADESHI PATRIKA 9 INTERVIEW
induce the government, political parties and opinion makers to change their thinking. State needs to be checked with this non-political societal force.
Q. How do you presume to do that? Arun Ojha ji: We have declared year 2009 as Public Awareness Year. Through out the year SJM in collaboration with other like minded people and organisations will contact and mobilize common man using all the available means of awareness campaigns. People will be organised to generate a strong, powerful and effective opinion to enforce the Swadeshi is facing at Present? change in the mindset of governments and political Arun Ojha ji: The major challenge that parties. People oriented policies will have to replace Swadeshi movement has been facing is the lack of the present policies pursued by government focusing attention given to real and basic problems of the on growth only. These anti people policies will have nation by successive governments and other major to be changed. Thrust of the government policy agencies. Market has been given more then planning should be the overall good of the majority deserved importance. Market, in fact, has become population and not privileged few. Swadeshi agenda the most significant factor. It is becoming all is being pursued by a vast cross section of people encompassing. Everything is being consumed by in varied manifestations on enormous scale. We market. Almost everything is being sacrificed at alter will foster relationships by co-opting/assisting and of the Market. So to attract the attention towards complimenting these efforts at feasible levels to social reconstruction and shift the undue focus away accomplish the desired goal. from market to other vital aspects of national life is necessary. Q. It sounds like SJM is preparing to provide Up-lifting deprived sections of the society and a helping hand to one particular political party equitable development leading to reduction of gap in the general election year? between haves and have-nots, is another major Arun Ojha ji:Our track record is witness to the challenge that needs to be confronted. fact that SJM does not make its policies keeping in All the major political parties of the country are mind one political party or the other. Our focus is treating fundamental national issues superficially. the common man of this great country. Those people They pay lip service to glamorous issues and their and parties who pursue the policies benefiting concern is limited to growth and economic common people will get our support. It, therefore, is development in a restricted sense. the policies and stand on issues that determines our In such a situation it is our responsibility to make line of action and not persons or parties. people aware and caution Q. Corporate governance them against impending has become an important dangers. Also a strong united Regulatory issue after Satyam episode. force needs to be shaped, an How do you appreciate there authority that will act as an mechanism has not developments? alternative power centre and Arun Ojha ji: Corporate check the anti people policies been permitted to and big business sector is not of the government. It has to being managed properly was be a non-electoral political clear for a long time now. movement, strong enough to evolve suitably. Internal irregularities and unfair
10 SWADESHI PATRIKA February - 2009 INTERVIEW trade practices have become almost integral part of these corporates & MNC, more so after the so called globalisation. Making profit at any cost, fairly-unfairly has become the only adage. It is bare voraciousness that guides the corporate operations. Regulatory mechanism has not been permitted to evolve suitably. Regulatory System at present is very fragile and ineffective. The latest developments have not only incapacitated the image of these individual companies but India Inc is under scanner and that is not good for a developing economy like India. There are forces out there looking for any prospects to damage the economic status of India. WTO, protesting group. It has evolved as a serious Such episodes provide propaganda material to mobilization on all aspects of Indian economy. them. Though we are satisfied with the progress made so It is time to take remedial measures without any far, at the same time we are not complacent. We further delay. Regulatory System needs to be recognize that there is still a lot to be done. Two strengthened legally as well institutionally. pronged strategy to strengthen the organisation and Regulators also must be accountable & transparent. intensify agitation is the way forward. SJM units will All these steps should be taken to restore the faith be constituted where they do not exist at present. of people in the system. The faith right now is New faces from amongst the active people in society shaken. There is no or very little trust left. will be inducted. Even if a single person is affected by any wrong policy of the government people will Q. Does Government have no responsibility? be mobilized to resist such policies. Arun Ojha ji: Government off course is fully Swadeshi as an alternative economic thought responsible for Satyam like issues. It is the process has also reached a stage where it is no government that has to ensure compliance of laws more ridiculed as a retrogative and anti innovation of the land. It is also government that is responsible thinking. On the contrary people through out the for the protection of common people who have been world have started taking note of the elements investing in these companies. Government as a Swadeshi was emphasizing all these years. catalyst is duty bound to provide facilities for Swadeshi movement will have to widen itself to entrepreneurship, but it is equally responsible for graduate into a position capable of providing prohibiting the abuse of these amenities. Present solutions to the global economy under threat at government has failed on all these accounts. present. An environment to experiment without the fear of failure will be encouraged to achieve the Q. What is the status of desired objective. ‘Swadeshi Movement’ and SJM as an organization at Q. How are you going to present and how do you attract youth towards SJM? intend to proceed further? Arun Ojha ji: SJM is a Arun Ojha ji: SJM, as is youthful organisation full of accepted by even our young and dynamic leaders at opponents, has emerged as different levels. Average age a strong and legitimate of our members at national nationalist voice in economic level is below 50. That is the field. It is not a mere anti- best average for any forceful
February - 2009SWADESHI PATRIKA 11 INTERVIEW
appeared to disseminate the message that the government was serious about welfare of farmers, artisans, workers and weaker sections of society. CMP made, “a solemn pledge to the people of our country: to provide a government that is corruption-free, transparent and accountable at all times, to provide an administration that is responsible and responsive at all times”. SJM at that point of time had welcomed it with the hope that the Government will translate the promise made about constructing a new and unique frame work where agriculture, SSI, unorganised sector and generating and dynamic organisation like SJM. Because of this employment become central along with economic we are able to attract a lot of youngsters to Swadeshi growth. movement. We also take up issues related to After five years it is clear to all that the younger generation particularly questions related to government has failed on all these accounts. In employment and quality life with freedom to utilise place of an ‘assured of a safe and viable livelihood’, their talent for the development of the nation. people are losing the jobs they had. Trends of large We have decided to organise youth scale dislocation from villages, pathetic condition conferences focusing on the challenges they face. of rural as well as urban poor, farmer suicides and Cultural degenerate will be also important aspect reducing availability of nutritional intake besides of these conferences and these will be held at the widening gap between privileged few and district levels throughout the nation. Youngsters disadvantaged masses have further strengthened will be given opportunity to understand the over last five years. Again CMP had promised ‘to difference between modernization and enhance the welfare and well-being of farmers, westernization. They will be farm labour and workers, encouraged to discus and come particularly those in the up with solutions. Genext has Swadeshi Jagaran unorganized sector and assure to realize that we ourselves have a secure future for their families to solve the problems faced by Manch is a youthful in every respect’. Today when we this country preferably by our organisation full of look at the reports of the own resources. Our interaction agencies of this very government with rest of the world must be young and dynamic we find that none of these on the basis of equality and promises has been kept. The life mutual respect. We no more can leaders of farmers and people dependent allow others to exploit our country on agriculture has in fact to sustain their expensive worsened. Suicides by farmers lifestyles. of Maharashtra alone ,the state ruled by UPA,crossed the 4,000-mark in 2007, for the third Q. Arun Ji, How do you evaluate 5 year rule time in four years, according to the National Crime of UPA. Records Bureau (NCRB). It is the similar story in Arun Ojha ji: The Common Minimum every field. Five years of UPA have proved to be Programme (CMP) issued by the UPA government dismal and devastating for the country. Genext has to realize that we ourselves have to solve the problems faced by this country preferably by our own resources.
12 SWADESHI PATRIKA February - 2009 ECONOMY
he Government has made a huge fiscal package to pull Getting the best out Tthe economy out of recession. Increased demand from Government-funded schemes will make up for the decline in private of the fiscal package demand. This policy is based on the experience of America during the Great Depression of the 1930s. The American economy was buoyant during the twenties. Share markets were in a bull run and the Government was following the policy of balanced budget. This is the same advice given to us during the last 15 years of economic reforms-Government expenditures must be kept low so that confidence of private investors is secured and economy continues to move along. The events of 1929 did not lead to such a happy result, however. The share market collapsed suddenly and factories downed their shutters. Economists Free market has led to bad distribution of proposed two contrary solutions to income and reduced demands in the market. The this crash. The mainstream advised the Government to hold on to the fiscal package announced by the government policy of balanced budget. They will succeed only if the money reaches common said that lower prices will soon generate new demand and the man and not to the coffers of corporates and economy will revive. The contractors says Dr. Bharat Jhunjhunwala deepening recession led to lesser revenues for the American Government which continued to were unwilling to increase income in steel safe and not buying reduce its expenditures in tandem. spending. In normal conditions the new seed leading to less demand This policy led to further expenditure of one person and recession. Keynes suggested deepening of the recession. Lower becomes income of another. The that reduced Government prices in the market did not revive expenditure on purchase of expenditures were only making private demand and reduced potatoes by the homemaker matters worse. The Government Government expenditures did not becomes income for the farmer. must instead increase expenditures help. The recession continued to Expenditure by the farmer for by incurring fiscal deficit. Just as get worse as a result. purchase of seeds becomes income the mechanic pours water into the Famed economist John for the seed companies. This pump to prime it, and then the Maynard Keynes suggested an virtuous circle of expenditure and pump lifts much larger amounts of exactly opposite policy. He income has got broken because water, similarly the Government reasoned that consumers were people are not spending their must ‘pump-prime’ the economy caught in a psychology of fear and income. The farmer is keeping his by jumpstarting the virtuous cycle
February - 2009SWADESHI PATRIKA 13 ECONOMY
The recession “is due to fleeing of foreign capital and due to contraction of our export markets. down like water in a dry well.” There is no underlying demand in the economy which can be jumpstarted by such expenditures. Question arises why a similar stimulus package was successful in pulling America out of recession in the thirties? My understanding is that the Great Depression was of expenditure and income. This policy will not deliver for broken not by the fiscal stimulus Keynes said that it was okay for the the developed countries like package advocated by Keynes but Government to balance its budget America in present circumstances by the expenditures made by the in times of high growth. The in my reckoning. Instead it will U.S. Government towards the opposite policy must be followed push them into deeper darkness. Second World War. Military in times of recession. President The basis of this policy is that for expenditures went into an Truman listened to Keynes’ advice. some unknown reasons the overdrive in 1939. The fiscal He undertook massive investments consumers have developed a stimulus package of 1937 onwards in the Interstate Highway system. psychology of fear and are had a limited role of covering the At the same time a huge demand unwilling to make expenditures bad patch of two or three years. for armaments was created though despite having the income. They Its role was like the UPS that keeps Government expenditures for the are stacking their earned currency the computer going for a short Second World War. Economists are notes in the safes instead of going period of power outage. These generally welcoming the fiscal out and buying cars and TVs. But military expenditures made up for stimulus packages being made by this is not the case in America at the loss of demand, which, truly governments across the globe on present. The American people are speaking, came from bad the basis of this happy experience. not keeping their earning in the distribution of income. The safes, rather they have no earnings. twenties saw the play of unbridled Jobs of American workers are free market. Distribution of being lost to factories in China and income became perverse. A The American BPO outfits in India. American handful of companies made huge people are not people are being forced o live in profits while income of the masses cardboard boxes or back seats of remained stagnant. The correct keeping their their cars. Increased expenditures solution was to repair this bad earning in the in building of infrastructure like distribution of income. This was airports will not bring about a done indirectly by increase in war safes, rather they virtuous cycle of expenditure and expenditures. It was like the have no earnings. income in this situation. Instead American people consuming war the expenditures will simply go instead of bread. The true story
14 SWADESHI PATRIKA February - 2009 ECONOMY of the American recession, foreign capital and due to outsourcing to India in their effort therefore, was like this. The free contraction of our export markets. to lower their cost of production. market led to bad distribution of This reduction of external demand Wages in India are near the global income and reduced demand in the can surely be made up by increase minimum hence our products will market. This lack of demand was in Government expenditures continue to retain their competitive broken by military expenditures. provided the external demand edge. The fiscal package The fiscal stimulus package had a bounces back in a short while. The announced by the Government, small positive role towards the fiscal package made by the therefore, stands on sound footing. beginning of the war. The fiscal Government of India is like a UPS But there is a need for caution. The package did not cure the main system that can run the computer success of the package will depend disease of bad distribution of for a short while. A UPS cannot upon restarting the virtuous cycle income and was not truly run the computer for days. of expenditure and income. In responsible for pulling America Similarly the fiscal stimulus package other words the money should out of recession. can generate demand in the reach the common man. It will not India’s situation today is economy for a short while. do to make more highways if the different than America in the Fortunately, there is a good chance demand from the common man is thirties or now. The recession in that such a revival of foreign not revived. Thus the Government our country is not due to lack of demand will indeed take place. Oil will do well to place more money domestic expenditures. There is no exporting countries may invest in the hands of the common man fear phobia among our consumers. their petrodollars here. American than in the hands of highway The recession is due to fleeing of companies may undertake more contractors. SWADESHI PATRIKA Voice of Real Economy
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February - 2009SWADESHI PATRIKA 15 DEBATE Need of Swadeshi Civilization It is matter of time when Capitalism collapses. The question before us is that shall we wait till its collapse, or should we, on the other hand, hasten the process? Shall we not build up our blue print of economic development in the right earnest? We are fortunate to have an option of new economic model in the form of Swadeshi. This benefit is not available to others. Many thinkers are expecting riots, civil wars, hunger, and increase in poverty and political chaos across the globe. They are also sure that the present attempts to save the capitalist economic systems are not of permanent nature. This should make us wise to move faster in our thought process and efforts in shaping a new Swadeshi civilization says SH. D G BOKARE. Swadeshi Patrika invites its readers to comment on the views expressed. If you think Swadeshi model is the future model share your views with us. Even if you believe it is not so tell us why you think so. Let us debate the issue contribute in our way to the emerging economic model.
lobal economic and meltdown in their economies. economies”. J.K. Galbraith has financial crisis that we However, they were quite aware disclosed in The Industrial State that G witness today is not about internal contradictions monopoly in capitalist world and unknown. It was expected by many within capitalism. They have been bureaucracy in management in unbiased economists across the telling half-truth about market former USSR are not different. world and more particularly from economy. Professors in the West, The West has been eulogizing India. Shri Dattopantji Thengadi despite knowing the difference all the time that laissez faire has no and Dr. M G Bokare were more between competition and alternative for smooth economic emphatic in this regard. monopoly, have been teaching that activities. The state should not Economists from the developed economies of the developed intervene in private sector’s countries are now shocked by the countries are “free market activities for making the economy most competitive and achieving continuous economic growth. They, however, have ignored the aspect of economic equality among all the players of the economy. What we witness today in the developed countries is that big hundreds of corporations, financial institutions and banks are standing in a queue to beg financial ‘bailout’ for their own survival. Many of them have been bundled out from the scene, as they never worked for people’s welfare. They were allowed natural death by their
16 SWADESHI PATRIKA February - 2009 DEBATE own governments. They instead worked for themselves by committing huge frauds. The general Motors and other two automobile companies of the USA were arrogantly saying that the image of one of their companies was representing the image of the USA itself. Today they are pleading the Congress for help with a begging bowl. History of capitalism has blessed some people who are in minority when compared to the entire population of the world. This history, however, is tainted with warfares, oppressions and iconic model of capitalist across the globe due to built-in injustices, holocaust, racism, economics for our West-trained contradiction of capitalism. A colonialism, slavery, exploitation of economists and political leaders. Japanese commentator says, “How all kind, economic equality, The present crises in the much speculative money is moving pollution of water, air, food and developed economies have around the world? According to cultures, homelessness, poverty etc. exposed the economists from the Mitsubishi UFJ Securities analysis, When big corporations control our West and also our bureaucrats who the size of the global ‘real finances, media and legislators, our have been eulogizing the capitalist economy’ in which goods and freedom, democracy and the well- economic model all the years. It services are produced and traded, preserved civilization will be only was known that the Western is estimated at $48.1 trillions. On an illusion. economies were on the verge of the other hand, the size of the The USA model was marketed collapse due to concentration of global ‘financial economy’ the total as the ideal capitalist model for economic powers in the hands of amount of stocks, securities and others to emulate for removing few speculators and gamblers. deposits add up to $151.8 trillions. poverty and achieve all round Stock market is the epitome of this The financial economy has thus prosperity. The USA and other monopolistic capitalism. All efforts swollen to more than thrice of real developed countries have used are being made to save the stock economy, growing especially many tactics and coercive forces on markets instead of main market rapidly during the past two decades. developing economies for opening economies of these so-called This is heading to an exploitative their economies and become a part ‘developed’ countries. We are also and speculative civilization. of global world for sharing the trying to copy the same mindset. Unfortunately India has accepted gains of ‘free market’ economies. There is a definite shift from real this path since 1990-91. The bureaucrats as well as some economy to speculative economy Signs of collapse of US top political leaders in our national economy were clearly seen right government have been trained in Actual impact of from 1987 when stock markets of the West and as such never America and Europe collapsed in contested the so-called claims of the present scam is October that year. Coincidentally, economists of the West. Rather yet not known to the a report of Treadway Commission they willingly surrendered to this was released in the same month on kind of pressure and joined the bureaucrats and large scale fraudulent practices monopoly capitalist groups. economists. adopted by the corporate sector of Globalization has become an the USA. The name of the report
February - 2009SWADESHI PATRIKA 17 DEBATE
(Report of the National dose of morality, as well as Commission on Fraudulent to put in place a better Financial Reporting) is regulatory system. Laissez enough to understand the faire is finished. The all gravity of the economic powerful market that affairs of that country. The always been eulogized is Commission was a private finished…. This system initiative and had James C. that allows the ones Treadway Jr. as its responsible for a disaster to Chairman. We should not leave with a golden therefore get surprised parachute of having about the timing of the increased inequality, economic and financial demoralized the middle crises the capitalist world is classes and market presently facing. Present attempts clear that best of brains of other speculation.” (emphasis is added). by the US government to inject economies, more particularly from Let us be clear about the bad phenomenal public funds (taxes) to developing economies, have effects of present day capitalism. reestablish the security of migrated to the USA during the To implement the present day speculative and fraudulent financial past five decades. They were capitalist model based on growth systems gives enough indication thinking that the USA was haven of the real economy and about the scale of duplicity of the for their own skills and benefits. unnecessary and extravagant economists of that country. It is They would get ample scope to use consumption attached to it has amusing indeed. This is being done their skills and education. Also, the become first time in the human to save the capitalism from collapse highest number of Noble laureates history a real threat for the future at any cost. This way, profits are in economics and social sciences of our human civilization and the privatized and losses are socialized! is staying in that country. Despite planet itself. The present day Russia and China too are in deep this, they could not save capitalism. capitalist model is designed to trouble due to copying this A few political leaders from forbid the access to the world’s monopolistic capitalist economic the capitalist world have the natural resources for the planet’s model. They too will be sinking courage to accept the failure of majority of population i.e. people along with the West. China may call capitalism, which is full of greed of the South. Earlier, the people it market-socialism, but it is and exploitation. The President of from emerging economies could nothing other than monopolistic France and the present chairman access to the world’s natural capitalism. of European Union has recently resources without raising any During post-1987, we have accepted the failure of crony questions on the consumption by seen many frauds and scams in that capitalism. He says, “The financial the rich countries. They were economy. Basically these include turmoil has highlighted the need to contended with limited dotcom scams, corporate frauds, re-invent capitalism with a strong requirements for their decent stock market manipulations, living. Today it is not so. The Enron scandal, siphoning of people from the affluent workers’ pension and welfare There is a definite shift countries representing hardly funds, and the present sub- fifteen percent of the world’s prime-mortgage scam running from real economy to population have been into trillions of dollars. Let us speculative economy monopolizing the use of be clear that the actual impact eighty-five percent of the of the present scam is yet not across the globe world’s natural resources for known to the bureaucrats and own consumption. They never economists. Let us also be used to like people from South
18 SWADESHI PATRIKA February - 2009 DEBATE to share this exclusive use continuing among the so- of natural resources. They called experts. Some of them have developed arrogance also sarcastically called of a kind. The USA has Swadeshi approach a developed military powers ‘reaction’ to the capitalism over time to guard an and Marxism. Some even exclusive use of these expressed as ‘backward resources. Any aspiring steps’ in the development. persons or countries simply This was more prominent trying to share the natural particularly after the collapse resources, they were of erstwhile USSR. Steadily, summarily eliminated from a large number of essays this world. Iraq’s example is have come to apprehend that the latest one to be something bad is likely to remembered by us. monopoly and exploitative happen in the economic life of the Marxian economy has capitalism in to our country around people and their nation. They are collapsed in early 1990s. It had 1990s, there was quite a resistance now keeping silence when the West some of the contradictions what from some of our experts against is facing a historical economic we see in present day capitalism. It the very capitalistic economic crisis. was nothing but the ‘state model. This model was imported It is quite clear from the events capitalism’. Monopoly of all without taking the Parliament and taking place across the world on the economic activities was centralized the people of this great country issue of capitalist economic in the state. On the other hand, into confidence. Many experts systems. This system was in capitalism has allowed by design were instead arguing the case for practice for over two hundred years monopolies in few hand of private Swadeshi economics. Swadeshi when the first industrial revolution people. Both systems have created Jagran Manch was established for had taken place. During this long and eulogized classes of people. propagating the Swadeshi concept period, capitalism has done more Rich, poor, industrial workers, of economic welfare of all. This irreparable damage to human capitalist, bureaucrats, farmers and model was econ-friendly as well as beings and natural resources. The farm labourforce, etc. are some non-exploitative. The opposition planet itself is now in danger of major divisions of population. to Swadeshi model of economics survival. Water, air, ecology, human Marx himself says, “Laws that was coming from those who health and cultural values have divide people are unnatural. What believed in and also taught to their suffered serious damages. All this is unnatural is immoral. What is followers and students in colleges is happening due to greedy minds immoral is not immortal”. But he the concept of western capitalism. of some people in the West who miserably failed to practice his own Whatever from the West was good believe in material satisfaction. By philosophy. Marxism has collapsed enough for these ‘experts’. This damaging natural resources they due to this contradiction. Now was the slave mentality. It is still feel that they are the most is the turn of capitalism to ‘developed’ people and their collapse. Signals of collapse of nations. Their civilization has capitalism are now clearly Capitalism has done no moral values, ethics, love visible across the world The and concern for others who live collapse is not going to more irreparable damage along with them in the same restricted to developed to human beings and world. Those who do not countries, but it would take the believe in such materialistic developing countries like India natural resources. pleasure but pursue the path of along with. spiritualism are being called At the time of importing ‘backward’ or poor people.
February - 2009SWADESHI PATRIKA 19 DEBATE
Now the question has come up The complexity cannot be solved present civilization of the West is before us whether we should by just importing a readymade irrelevant for those Indians who continue such menace of package from the West. Our believe in strong cultural and moral consumerism and lose our culture and civilizational issues are values. There is definitely a need civilization’s identity forever. I must quite different than those of to change the Western model of say that this time around the materialistic world. We strongly economics for the survival of the Western social leaders have realized believed that after defeating the society in general. that their civilization is in the British in 1947, we would be able Dr. M. G. Bokare, the National process of demolition as they have to follow the path guided by seers Convener of Swadeshi Jagran reached the plateau of materialistic and statesmen like Lord Buddha, Manch, had pose some questions happiness. It may be difficult for Lord Mahaveera, Aurobindo, for our debate. He says, “We us to change the attitude and Vivekanand, Mahatma Gandhi et should possess the broad objective of these so called al. However, our western- framework within which the ‘developed’ people. But we influenced leaders had thwarted fellows of Swadeshi ideology certainly can stay away from them this thought process. We believed belonging to different faiths will by aggressively adopting our own
Swadeshi is a God-given opportunity to freshly look at better economic model. values and retaining our thousands in the transition period the move for study and action. Some of years old Civilization. economic model brought in by questions are illustrative in the Pandit Nehru was good enough. framework: Swadeshi civilization - an This was relevant till Rajiv Gandhi’s 1. Should internationalization of option. death. We however wanted our life and living govern the Swadeshi is a God-given altogether a new economic model national values and opportunity to freshly look at for the welfare of our people development? better economic model for the subsequent to this period. 2. Is the ratio of our foreign trade welfare of large population not of Swadeshi was found as an to national economy the index India but also of other nations. It alternative economic model. It has of development of our has universal application for different civilizational values. economy? mankind. India has distinctly Capitalists of our country had the Such questions will be different economic, social and power to influence the political answered by different people who cultural issues as compared to the decisions, and as such we had been know economics. The debate on so-called developed nations. Our forced to adopt the exploitative Swadeshi has to attend to such issues are more complex in nature. economic model of the West. The questions.
20 SWADESHI PATRIKA February - 2009 DEBATE
Swadeshi movement has to be should not be thrown over- internationalization should be a civilisational change. Our board. scrutinized on the litmus tests civilization promoted on the 6. By following the propositions listed above. He further said, knowledge of Vedic books has to as detailed in my thesis of “Globalization of Swadeshi be placed in the forum of Hindu economics, we will be economic thoughts deduced from international discussions and able to create a new civilization our Vedic books should be on our debates. Its superiority has to be and offering a welfare state for agenda in all countries. …All these argued. …. Globalization of our all our citizens. Its benefits can years, we have studied Westernized civilization has to be sustained by be spread across the globe. thoughts. Swadeshi thoughts now ‘nationalization’ of the thoughts in 7. Ecology of economic activities should also be placed in Western India. Swadeshi ought to have its must be protected all the time. forums, for their enlightenment”. own philosophical canvas. Hence 8. Cultural values of the Capitalism is on its last journey Vivekanand and Aurobindo again brotherhood of Indian people as said earlier. It is matter of time become relevant for organizing the including Muslims and when it collapses. The question work of studies and worldwide Christians should not be before us: Shall we wait till its communication. This is disturbed in our attempts to collapse before we take our actions inescapable conclusion to be for implementation of Swadeshi followed in a civilizational change. economics? Should we, on the Swadeshi is not an ad-hoc activity. other hand, hasten the process of It has to connect the past with the the collapse of capitalism? Shall we future. In this process, many of our not develop our blue print of people may experience a convulsive economic development in the right change. The westernized mindset earnest? It is known to all that a has done great harm to India, new economic system needs long especially her cultural values, her time to become effective. We are history and her store of fortunate to have an option of new knowledge. We have to liberate economic model in the form of ourselves from some of the Swadeshi economics. This benefit Westernized thoughts, which have Swadeshi is not available to other countries ramified all corners of our mind.” in the world. Many social thinkers He further says, “This is not an ad-hoc are rather worried about the future discussion leads to some of mankind after the collapse of fundamentals of Swadeshi activity. the capitalist economic systems. philosophy. They are as under: They are foreseeing anarchy and 1. The sovereignty of our nation develop our planning for a new chaos in the world after such shall not be compromised in civilization. collapse. They are expecting riots, any discussion of 9. Dangerous inroads to destroy civil wars, hunger, and increase in globalization. the unity of India will not be poverty and political chaos in many 2. The power of our military tolerated. developing as well as developed should not be weakened. 10. Righteous values of life in all countries. They are also sure that 3. Self-reliance of our religions existing in India the present attempts to save the technological development should not be transformed capitalist economic systems are not should not be compromised. into vainglorious values of life of permanent cure, but only a 4. Poverty reduction in the process of our time-gaining game. This should programmes should not be development.” make us wise to move faster in our discarded in our efforts. Such values should be spelled thought process and efforts in 5. Actual employment, including out in our approach. Each shaping a new Swadeshi civilization self-employment, in India guideline in favour of in our country.
February - 2009SWADESHI PATRIKA 21 PATENTS Patent system Abuse and National Helath Policy Goals
Indian Patent System is being abused for narrow commercial advatnage. Review of important stipulations post audit of patents granted and safeguarding sanctity of system needed to bring discipline and sanctity in system, urges Sh. B.K. Keayla
“The criterion for
patentability is
tending to be diluted ” he patent system, that has acquired a unique offering for sale, selling on importing and also similar position in the industrial economy, is being rights on process patent. These kinds of rights should Tmisused and abused for narrow commercial therefore be allowed only on such products and advantages. In order to be patentable, the invention processes which fully satisfy the strict criteria of ought to meet strict criteria of novelty (previously patentability. unknown to the public), non-obviousness (containing sufficient innovativeness to merit protection) and INDIAN PATENTS ACT 1970 industrial applicability (usefulness). The strict The Indian Patents Act 1970 that has been interpretation/application of the criteria for brought in line with the provisions of the TRIPS patentability would mean that only ‘basic inventions’ Agreement has not done full justice in formulating and ‘chemical and medical molecules’ should be some of the important and crucial Sections. The three patented in the pharmaceuticals field and for other important stipulations of the ‘scope of patentability’ industrial sectors. The inventions should be really basic which have remained unresolved so far are as follows: and unknown. Over a period in practice, the criterion (i) Definition of patentable invention; for patentability is tending to be diluted and is being (ii) Definition of patentable pharmaceutical applied in a liberal and flexible manner. substance; and Patent holders enjoy exclusive rights and that too (iii) Patentability of micro-organism. for 20 years on the products, its production, using, The above issues were debated in Parliament at
22 SWADESHI PATRIKA February - 2009 PATENTS
Frivolous Patents : (i) Patenting of a Cigarette comprising with a tobacco rod. Patent No. 193777 granted to Philip Morris Products INC. A US Company on January 13, 2006. (ii) Process for the preparation of novel composition useful for making Parontas (fried chapattis). Patent No. 195187 granted to CSIR a semi government organization on 7.3.2002. (iii) Sanitary napkin, Patent No. 195410 granted to UNI-Charm Corporation on 11.4.2005. (iv) Broom : Patent No. 195912 granted to Jatin Tarachand Gala on 29.7.2005. The Report of Technical expert (v) Process of Making Fried Masala Banana Chips, group was plagiarized from a paper Patent No. 198069 granted to M. Veeresh on supported by the MNCs. July 7, 2006. (vi) Toilet Seat Cover, Patent No. 198000 granted the time of enacting the final Patents (Amendment) to Dr. P.I. Mohandas on 23.2.2007. Bill 2005. The senior Members of Parliament The above are the general type of so-called criticized the stipulations on these issues. The Minister inventions for which patents have been granted. In for Commerce and Industry gave an assurance on the the recent past, even in the field of pharmaceuticals floor of the House to refer the issues at (ii) and (iii) certain companies have allegedly benefited from the above to a Technical Expert Group for examination. current scope of patentability and from the provisions The Ministry established a senior level Group headed in the Section 3(d) of the Patents Act, 1970 and by Dr R.A. Mashelkar, the then Director General of obtained the following questionable patents* : CSIR.. The Group submitted its Report to the government in December, 2006. However, the issues Sl. Patent Holder Drug substance dealt with in the Report by the Group were messed No. No. up and also the Report Technical expert group was (i) 204325 Pfizer Inc. Eletriptan hydrobromide plagiarized from a paper supported by the MNCs. monohydrate The report was severely criticized all over the country (ii) 204343 Pfizer Inc. Polymorph of by the stakeholders. Government has yet to announce azacyopentadecan their decision on these issues. The assurance given (iii) 201140 Pfizer Inc. Novel crystalline forms of on the floor of the Lok Sabha about 4 years ago is microlide antibiotic. still unfulfilled. Now it is understood that the Ministry (iv) 202128 Schering Stable crystalline polymorph Corp. of diffuropheny. of Commerce and Industry have requested again Dr Mashelkar to correct certain technical mistakes which (v) 201649 Wyeth Novel succinate salt of O- crept up in the Report. No one can appreciate this desmethylvenlafaxine. decision of the Ministry from the public interest angle. (vi) 204126 Sun Pharma Piperzinyl derivatives. Once the Group and its Chairman lost their (vii) 204151 Glaxo Substituted oxazoles and creditability, the Government should not have thiazoles approached the same team to rectify the blunders. The (viii) 204158 Astra Imidazo pyridine derivatives issues also must not be allowed to linger on. Zeneca In the meantime, the stipulations about the *Source : Mint – 10.12.2008 Thus in addition to the three issues of ‘scope of patentability are being freely abused to the extent that patentability’ referred to earlier, there is also a need to trivial/unusual patents are being issued by the Patent re-examine the ambiguity arising from the formulation Offices. Some of the examples are as follows:
February - 2009SWADESHI PATRIKA 23 PATENTS of Section 3 (d). least in the initial decade. The situation which is emerging from the grant CONCLUSION AND SAFEGUARDING of questionable patents will soon result in a joke of THE SANCTITY OF PATENT SYSTEM : our patent system where the subject matter which All developing countries including India are facing aught to be protected by the ‘Trade Marks Law’ or health crisis on a massive scale. the ‘process patents’ are being protected Improving accessibility and afford by product patents to perpetuate Patents Law abilities of medicines particularly for monopoly. The patent system is thus has to have reversing the trend of high mortality and being misused for commercial morbidity from tropical diseases is a advantages inflicting serious impact on co-relation with major challenge. There is a strong need the National Health Policy goals and the National to discipline/limit the scope of patentable Universal Declaration of the Human subject matter in our country. Otherwise Rights due to charging of enormously Health Policy we will face similar situation as in USA high prices on such trivial protected and China where presently lakhs of products. Patents Law has to have co- patents are being filed annually. Such protected relation with the National Health Policy in the national medicines seriously affect the affordability in the poor interest. countries. The US Federal Trade Commission in its NEED FOR PERIODICAL POST AUDIT Report of 2003 pointed out as to how the flood of OF PATENTS GRANTED : patent applications are responsible for poor quality The grant of trivial/questionable patents will lead or questionable patents being granted in USA even to criticism when the public interest becomes when they have over 3000 patent examiners. Such a pronounced. Some kind of check is called for. There chaos would be totally unmanageable for the patent is a study by an important USA Institution which offices in our country. Flood of patents would result reveals as to how the patent system is being misused in high cost economy and sufferings for the in that country. The National Institute of Health Care ailing people which a welfare/democratic state can Management Research and Educational Foundation ill-afford. Government has invested several crores in their Report (2002) on “Changing Patterns of of rupees in creating a modern patent infrastructure Pharmaceutical Innovation” points out that : and institution. Another important fact is that majority “Drug manufacturers patent a wide range of of the patents are being obtained by the MNCs. inventions connected with incremental modifications Economic Times of January 7, 2009 has reported that of their products, including minor features such as “a total of 35,218 patent applications were filed, 6040 inert ingredients, and the form, color, and scoring of from domestic and 29,178 from foreign applicants in tables”. the last fiscal”. Has the Government undertaken such Similar reporting has also been done by the a huge economic burden to protect frivolous/ Federal Trade Commission of USA in 2003 which questionable and foreign patents ? Filing and also revealed the shortcomings of the system in examination of patent claims, facing of patents granting questionable patents. opposition, facing of cases in the courts, protecting The above reporting in USA suggests that of infringement of patents and controlling of the periodical studies of patenting are important to ensure prices and availability particularly of the pharma that misuse of the system is controlled. In India also protected products involves a huge economic burden. there is not only a need to be exceptionally careful in A serious consideration is needed by the Government providing specific subject matter which should be to review the patentability in our country and also do permitted for patentability to deal with the phenomena the post auditing of patents granted to bring in of trivial patents as highlighted, but also that there discipline and sanctity in the system. We should should be a system of periodical review of patent practice only a patent system which is not abused in stipulations and post audit of patents granted. This any way and that it really stipulates the objectives of will help to refine and discipline our patent system at public health in the country.
24 SWADESHI PATRIKA February - 2009 SECURITY
Defence is too serious a matter to be subject to governmental dithering and procrastination
Forces under his/her command and be reassured about the ability of these forces to defend the Nation. The forces in turn reiterate their loyalty to the elected government of the Republic and their Supreme Commander. While doing so the might of the nation Nation must provide before Soldier is compelled to Demand
There is no point in having mammoth establishments like the Ministry of Defence supported by headquarters of the three services sitting on prime land in new Delhi while the soldier on ground is suffering pangs due to bad equipment, inadequate pay and pathetic living conditions, complains JASBIR SARAI*
he country has just avoidable expenditure apart from is also exhibited to the world, the culminated the joyous causing inconvenience to the national heroes are awarded and Tcelebrations of its 60th general public. In order to homage is paid to the martyrs. Republic Day. The tradition of understand the need for continuing In essence the whole holding the Republic Day Parade with this tradition it is necessary ceremony is all about generating a every year has been subject to a lot to dwell on the reasons for holding feeling of nationalism. The most of debate and articulation over the it in the first place. The Parade is moving part is the honour that the years. There is a strong lobby that held so that the President, as grateful Nation bestows upon its advocates abrogation of the Supreme Commander, gets an gallant soldiers who have won tradition since it involves an opportunity to review the Armed laurels with their feats of bravery
*The author is a Chandigarh based security and defence expert and analyst.
February - 2009SWADESHI PATRIKA 25 SECURITY
and in some cases have sacrificed embraced martyrdom in 2008. The had been awarded the Ashok their lives to uphold the national War Memorial in the Udhampur Chakra while fighting militancy in spirit. This year all personnel who based Northern Command alone Kashmir. My second question; is lost their lives killed in the holds the names of 10,000 plus the loss suffered by Rattan Tata horrendous terrorist attack at martyrs. The pain that is being felt due to the action in the Taj Mahal Mumbai on November, 26, were by the families of these fallen Hotel at Mumbai any greater than awarded with the Ashok Chakra, heroes is as great as the pain being the loss suffered by a poor man in the highest award for gallantry in felt by say the father of Major Kashmir whose house has been operations other than War. Eleven Sandeep Unnikrishnan, the NSG bought down due to an encounter Ashok Chakra’s have been awarded officer who died fighting terrorists with militants and who, unlike to our brave soldiers from the in Mumbai. Rattan Tata, does not have the Army, the Para Military Forces and I have two simple questions; means to ever reconstruct the the Police. would young Sandeep’s father have same. Undoubtedly the feats of the received same attention if his son The Nation should be more brave soldiers were deserving of sober, understated, reticent and the award but a true spirit of The government equitable while showing its respect nationalism demands that the should not be for those who have taken upon sacrifice of all sons of India be allowed to hide its themselves the mantle of security. measured in equal terms. To Moreover, consciousness of their elaborate, the Nation must never inadequacies contribution to the national cause forget that apart from these brave behind a veil of a has to be ongoing rather than event martyrs there are many in this year self proclaimed and ceremony based. Every Indian and before who have made similar should exhibit this feeling from sacrifices for the country. 70 brave need for secrecy. within and all actions required to soldiers of the Indian Army have uphold the respect, morale and
26 SWADESHI PATRIKA February - 2009 SECURITY fighting capability of the soldiers should form part of the national cause. Ceremonies and theatrics should not be allowed to replace real time respect for the Indian soldier. Even as the heroes are being felicitated the Armed Forces are embroiled in a debilitating and humiliating bureaucratic spat over the award of the sixth pay commission. This apart, the defence procurement procedures have been made so complex that the forces are reeling under the pressure of being badly /under scope for bureaucratic red tape in sitting on prime land in New Delhi equipped. The matter is further such matters. If the government while the soldier on ground is aggravated by knee jerk measures feels that it can motivate its suffering pangs due to bad that are adopted as reactions to nationals to sacrifice their lives for equipment, inadequate pay and incidents of security breaches as a salary of Rs 1000/ per month by pathetic living conditions. and when they occur. The NSG all means give no more; If we feel The issue of accountability can requisition an aircraft at will but that we can do without advanced and the transparency is also of only after India has suffered the weaponry then the government prime importance in matters humiliation of the 26/11 incident. should call upon the youth to join relating to defence and security? Guided Missiles are purchased off the national Armed Forces and Timely decisions with the public the shelf only when a military face fight with bows and arrows. It is kept in the information loop are off with a foreign power becomes not for the soldier to demand, it is of utmost importance. The eminent. A national and for the Nation to provide. There government should not be allowed governmental attitude of this is no point in having mammoth to hide its inadequacies behind a nature does nothing to build the establishments like the Ministry of veil of a self proclaimed need for morale of the soldier or give him Defence supported by secrecy. Furthermore, if the forces confidence about his relationship Headquarters of the three services feel that they are not ready for war with the State; it leads to avoidable they should come out openly with cynicism amongst those who need Defence procurement their apprehensions. In fact, Defence policy should form part to maintain a high threshold of procedures have been ideology, whereby, all the affection of the election manifesto of all showered by the nation gets made so complex that political parties and the general negated. public should debate the same as Defence is too serious a matter the forces are reeling is done in the US.. If we are true to be subject to governmental nationals then we need to go dithering and procrastination. The under the pressure of beyond mere ceremonies and be honest with our soldiers, failing leaders must be firm and decisive being badly /under in all matters related to security and which, the chances are bright that decisions must be well considered equipped. on one crucial day the soldier will and above all timely. There is no fail us.
February - 2009SWADESHI PATRIKA 27 BOOK REVIEW
AN INTEGRAL MECHANISM IS THE FUTURE: GURUMURTHY
Title: THE WORLD BEYOND MARX AND MARKET”
Author: S.Gurumurthy
Year of Publication: December,2008
Publishers: Swadeshi Jagaran Manch Tamil Nadu
he real-estate crisis that manner. This is visible clearly in the exploded in America and G. RAINA book under review. Even a lay man Tengulfed mortgages, will feel, while reading the book, rendering debtors unable to pay reality? Who better is a person that he is acquainted with the their loans has already developed other than Sh S. Gurumurthy, the subject adequately. into worst ever international celebrated CA and corporate Those of us who are not so financial crisis. It has rightly been consultant to explain the emerging familiar with the convictions of the termed as a financial tsunami. scenario in a simple uncomplicated author will appreciate the clarity of Banks, non bank financial manner? And this is what exactly thoughts and adore his style of institutions, services and he has done for us in his latest going straight into the heart of the manufacturing sector is not the book, “”THE WORLD topic. We should understand, says only casualty of the global BEYOND MARX AND Gurumurthy ‘that it is partly meltdown. Worst is the fact that the MARKET”. historical and partly futuristic. It belief that capitalism was the best “This critique of Marx and prognosticates a world that is not of all possible systems, with Market is essentially from the only “post-Marx” and but also apparent confirmation being perspective of that part of the “post-Market.” supplied by the fall of the Soviet world – the non-Western world Summarizing briefly important Union is shattered. This worst ever and particularly, its non-Anglo- aspects of the historic journey of financial crisis that has stunned the Saxon part – which has not been both communism and capitalism entire world has shaken the very experienced, understood or the author tells us that ‘Marxism foundation of Market Capitalism. factored in by Karl Marx or his stormed the West over hundred People, economists, politicians adherents or by Adam Smith or years ago as a part of the and administrators world over are other free market thinkers,” writes continuing and painful socio- discussing the future of economic the author. religious and socio-political and order in voyage for about three Sh. S. Gurumurthy, we know, socio-economic melting process centuries; unsure of the direction is an ardent observer of economic within the Christendom.’ “The they must take. There are plenty of order and has been a leading inherent contradictions within the people who believe that Capitalism activist against the Globalisation. communist philosophy and has now taken the plunge and He has not only mastered his practice”, he adds “began to headed for where it belongs- the subject but has evolved a distinctive emerge and finally ensured its abyss. Capitalism is reinventing style of expressing the difficult collapse.” itself, argue others. So what is the subject in an easy to understand While talking about free
28 SWADESHI PATRIKA February - 2009 BOOK REVIEW market capitalism, the learned author opines, “the very notion of free market model, the Anglo- Saxon free market capitalism based on individualism as the core and globalisation as drive now seems to be a thing of past, after the financial meltdown hit the US.” Gurumurthy in this very useful and very valuable book explains that “communism and capitalism are not opposites; they are founded on the same materialist philosophy and thought. Both look at the world as exclusively materialist. And, both implicitly and explicitly revolution has undergone a privatises itself!” rejected the idea of God and metamorphosis.’ Given the experience of the divinity. Both had concluded that By making a socio-economic last century and particularly the last human beings were just a bundle comparison of the US in 1929-30 couple of decades, and more of wants and desires and the only (the years of great depression) and critically the last couple of years, question was how to fulfil such the US now, the book THE what the world needs is an integral wants and desires. WORLD BEYOND MARX mechanism which allows the non- He does not stop at critical AND MARKET brings out how formal institutions – the family, the analyses of these thoughts but the US society and the US community and other informal moves forward to suggest the households were stronger then and mechanism of the society – their solution. Based on the historic weaker now. Gurumurthy believes legitimate role. It means that there experience of India and endorsed and rightly so that Anglo-Saxon should be adequate space for non- by eminent people from varied free market capitalism has robbed formal social order within and backgrounds the author concludes the people, and enriched the along with the formal state, its rules that ‘It has now become evident corporates. He hits the nail on is and instrumentalities. So we need that not the contract –based life head when he writes, “Cultural a market which will function along model and style that is common to degeneration undermines with, and not undermine or free market capitalism and interdependence, leads to state- destroy, non-formal institutions communism, but relation-based dependence; and an over burdened and conventions. So, the only market model, which will be the State nationalises the families and market system which will be sustainable socio-economic and sustainable is that which shows political model for the world.’ Sh. Gurumurthy deference to non-formal norms Sh. Gurumurthy thus explains and harmonizes with the society the transmutation capitalism has that incubates and sustains those undergone over a period of time , explains the norms, concludes the writer. ‘With knowledge economy and It is a very useful book not sophisticated digital money and transmutation only for the followers of the derivatives replacing hard assets, Swadeshi but all the serious co-opting more and more people capitalism has students of economics particularly into the category of capitalists those who want to understand without capital through undergone over a causes of the present crisis and entrepreneurship, the character of contribute to the evolution of the capitalism and the class enemy period of time future global economic structural Karl Marx had set as the target of design.
February - 2009SWADESHI PATRIKA 29 SWADESHI SAMVAD
OBAMA IS THE PRESIDENT OF UNITED STATES OF AMERICA
arak Hussein Obama is the candidacy on February 10, 2007 in Barak Obama accepted candidly 44th president of USA. front of the Old State Capitol that USA was in the midst of crisis. BBorn on August 4, 1961, building in Springfield, Illinois-the He said, “Our nation is at war, the 47 year old current president is state where he was a law maker. against a far-reaching network of the first African American to hold The choice of the announcement violence and hatred. Our economy the office. He was sworn in as site was symbolic because it was is badly weakened, a consequence President on January 20, 2009 in also where Abraham Lincoln of greed and irresponsibility on the an impressive but simple inaugural delivered his historic “House part of some, but also our ceremony attended by unusually Divided” speech in 1858. During collective failure to make hard large crowd in chilling cold. Obama both the primary process and the choices and prepare the nation for is a graduate of Columbia general election, Obama’s a new age. Homes have been lost; University and Harvard Law campaign set numerous jobs shed; businesses shuttered. School, where he was the first fundraising records, particularly in Our health care is too costly; our African-American president of the the quantity of small donations. schools fail too many; and each day Harvard Law Review. In his inaugural address brings further evidence that the The inaugural ceremony was immediately after taking oath, ways we use energy strengthen our the finale of an unbelievable rise adversaries and threaten our of a person from a humble and “Greatness is planet.” disadvantageous background. In a Terming all these challenges very short span of time, he rose never given. It real, serious and many Barak from a little-known ‘some-one’ to asserted that “they will be met.” In the nation’s highest office. His must be a forceful appeal to fellow election campaign was incredible Americans Obama asked them to and he succeeded in persuading ‘begin again the work of remaking Americans that he is the person earned : America’. Greatness is never given. who will deliver. It must be earned, he added Obama announced his Obama” further.
30 SWADESHI PATRIKA February - 2009 SWADESHI SAMVAD
Regarding the economy and the recent turmoil including the role of regulators, president Obama was of the view that the power of the market ‘to generate wealth and expand freedom is unmatched, but this crisis has reminded us that without a watchful eye, the market can spin out of control - and that a nation cannot prosper long when it favors only the prosperous. The success of our economy has always depended not just on the size of our Gross Domestic Product, but “Obama and Biden will J&K dispute between India and on the reach of our prosperity; on increase non-military aid to Pakistan and relate terrorism with our ability to extend opportunity Pakistan and hold them resolution of Kashmir issue has to every willing heart - not out of accountable for security in the strengthened long existing charity, but because it is the surest border region with Afghanistan,” suspicions about role of USA route to our common good.’ the White House said in its foreign under new administration. Addressing the Muslim world policy agenda document released There are other issues also like he sought a new way forward, soon after Obama occupied the CTBT, NPT and the stand taken based on mutual interest and Oval office. by Obama on out sourcing during mutual respect. But took a dig at Biden, a known expert on election campaign. Whether “those leaders around the globe Afghanistan and Pakistan, then in realism dawns on him while in who seek to sow conflict, or blame the capacity as the Chairman of the office is to be seen. their society’s ills on the West - powerful Senate Foreign Relations These may be some irritants know that your people will judge Committee, had introduced but overall there is optimism as you on what you can build, not legislation in the US Senate in this India understands the limitations what you destroy. regard. of USA also. In the emerging world Co-authored jointly by the scenario it may be possible for new Conditional non-military aid to Republican Senator, Richard administration to avoid facing Pakistan: US Lugar, the legislation proposes to some hard facts in the hope of The new Obama triple non-military aid to Pakistan winning over the trust of some Administration cautioned Pakistan in the next five years. The enraged adversaries but ultimately that it would be held accountable legislation authorises USD 7.5 truth has to be faced. The fact is for the security in the border billion over five years in aid that that Islamic terrorism is the regions of Afghanistan and that its can be used for development manifestation of global resurgence performance in the fight against purposes, such as building schools, of religious fundamentalism which terrorism would be linked to the roads and clinics. is not Kashmir-centric. Even if financial aid to them. Kashmir and Palestine are handed The fact is that Islamic Doubtful optimism in India over to Islamic Jihadis terrorism Barack Obama, widely hailed terrorism is the will continue to haunt the civilized as a harbinger of change has world. It is basically a case of manifestation of global generated optimism in India also. misplaced belief in self righteous resurgence of religious But there are some doubts that stand taken by these ‘soldiers of fundamentalism which is refuse to go. His inclination to Allah which is a global not Kashmir-centric. draw a link between the situation phenomenon ,be that Chechnya, on Pak-Afghan border and the Xinjiang or even Europe.
February - 2009SWADESHI PATRIKA 31 National
ICAI against auditing Govt, RBI unveil The India Infrastructure work to KPMG stimulus measures Finance Company Ltd will access an additional Rs 30,000 crore by tax-free bonds to finance projects The government on Friday, 2nd worth Rs 75,000 crore over the January; announced a fresh next 18 months. stimulus to reverse the economic The IIFCL bonds would be slowdown, taking its total revenue issued soon for raising first tranche loss to Rs 40,000 crore, through of funds. higher public spending and easier credit especially for exports, housing and small industries. Oldest impact structure Simultaneously, RBI slashed in India discovered key policy rates and ratios to pump in an additional Rs 20,000 crore One of the oldest impact The chartered accountant into the banking system, while structures in the world, created by regulator, ICAI, has written to the government asked PSU banks to an asteroid of the size of about one newly appointed Satyam Board km in diameter about 2,500 million that KPMG cannot do auditing years ago, has been discovered by and accounting work of the an Indian geologist in Madhya Hyderabad-based IT company . Pradesh’s Shivpuri district. “We have written to Satyam The newly discovered Dhala board that KPMG cannot be structure, second in India after appointed auditor for Saytam as Lonar, has been named after the they are not our members.” ICAI village near which it was President Ved Jain said reporters discovered. It is the eroded in New Delhi .When pointed out that KPMG would be doing a restatement of financial accounts; Jain said this is an assurance service increase credit targets to ensure that also involves accounting and maximum fund disbursals at the auditing. When asked whether the least cost, particularly when BSR and associates, Indian arm of inflation is ebbing. KPMG can do the auditing of Signalling a shift in focus from Satyam, he said KPMG cannot be inflation management to growth, involved in auditing directly or the package — the second in a indirectly. month — is part of a process Satyam’s new board has initiated by the government and mandated KPMG and Deloitte to RBI in October in the face of remnant of the an impact structure restate the company’s financial crumbling financial system and with an estimated present day statements. However, ICAI said recessionary pressure in the diameter of 11-km, the largest in KMPG cannot audit Satyam’s West. Asia. Till date not a single books, even as the global auditor The RBI had during the period confirmed impact structure has said it does not require to register released over Rs 3,20,000 crore into been reported from Japan and with the regulator to restate the IT the banking system to usher in a China. firm’s accounts. low interest regime in the economy, It is the only confirmed “KPMG is not allowed to as prices of fuel, metals and agri structure discovered by an Indian practice in India... they are not commodities plunged easing in the subcontinent and Far East registered with us,” Jain said. inflationary pressure. Asia. Until now, Lonar in
32 SWADESHI PATRIKA February - 2009 National
Maharashtra was the only The company had sought income doubled up as a domestic confirmed structure but it was shareholders’ approval through help as well, she said. discovered by a British Scientist postal ballot for an equity “However, she always wanted and confirmed by the Americans. investment of Rs 85.85 crore in both my brother and me to study Dhala impact structure spreads the joint venture SEZ with Maytas and encouraged us,” Varlaxmi, who over 64 square km of area. Properties and Maytas Infra. will be doing her Master’s in There are only 175 known The minority shareholders International Business and such structures in the world and were given time up to January 30 Management, said. Studying at most are located in North America, for giving their response. home, a one room tenement in Australia and Eurasia. Lonar and However, the outcome of the suburban Kanjurmarg, was never Dhala are the confirmed structures ballot would make no difference to easy for Varlaxmi who had to in Asia. MMTC’s decision to abandon the adjust her study timings in order JV with the tainted Hyderabad to accommodate other members MMTC aborts SEZ JV firms since the government owns of her family and fluctuating with Maytas over 99 per cent of the trading electricity supply. major. “Electricity was a problem The USD five-billion PSU had since whenever I wanted to study Government-owned MMTC proposed to pick up to five per cent we would not have power. Also, I has decided to drop its joint equity stake in the JV. had the habit of studying late into venture SEZ plan with the two The 8,603-crore SEZ was to Maytas firms promoted by B have an equity component of Rs Ramalinga Raju’s family after 1,717 crore and debt of Rs 3,495 surfacing of the multi-billion crore. The balance was to be Satyam fraud. financed through lease rentals and pre-sales.
Daughter of domestic help secures admission in UK college
From a tenement in the night which was inconvenient Kanjurmarg, adjusting sleeping for others so I would sometimes hours to study and watching her get up early and study outside the single mother work over 12 hours house,” she said. Sleeping a day as a sometimes at 1 am and waking at 4 Though the decision to pull domestic help to make ends am to study, Varlaxmi, on certain out of the Rs 8,603-crore multi- meet, 21-year-old Varlaxmi Pillai occasions, spent the entire day services SEZ project in Tamil has overcome many an obstacle to studying in the college library. Nadu has been taken by the secure herself admission in a UK “I had to study when there was MMTC brass, the formal approval college. no sound of television and other for aborting the plan is expected “It was difficult at times while distractions. But I was always clear on January 16 from the MMTC I was growing up. My father on what I wanted and I knew I board. expired when I was five-years-old would do whatever it took,” “We have sought the board’s and my mother had to bring up Varlaxmi said. Among her main approval not to go ahead with the my brother and me,” Varlaxmi sources of motivation she cites are plan,” MMTC Chairman and said. Her mother Shanta initially her mother, travel author Meher Managing Director Sanjiv Batra worked in a small biscuit factory Moos and her college principal said. but to supplement the family’s Dr Indu Shahani.
February - 2009SWADESHI PATRIKA 33 International
Britain may shut doors Loan sharks offering to help with someone in to foreign workers intimidating women financial trouble, and then becoming aggressive when that Loan sharks in Birmingham person can’t pay. are forcing vulnerable women into having sex with them to pay off Carbon cost of debts as more people find it Googling revealed difficult to make ends meet due to The research found a google job losses and credit crunch. search produced 7g of carbon According to Birmingham’s dioxide. Two search requests on Stop Loan Sharks project, some the internet website Google women, particularly single produce as much carbon dioxide mothers, are contacting them for as boiling a kettle, according to a Harvard University academic. US Britain is planning to ban physicist Alex Wissner-Gross has advertising jobs overseas due to conducted research into the economic meltdown, a process environmental impact of which could hit Indian “googling”. professionals aspiring for Environmental physicists are employment opportunities in UK. worried about the environmental The government is mulling an impact of information technology. idea to ensure that existing jobs go A recent study estimated the global to British workers. The employers IT sector generated as much are being forced to notify vacancies greenhouse gas as the world’s in employment agencies within Britain to prioritise local help and advice to deal with their candidates. Indians form the inability to make loan repayments. largest group of foreign Other borrowers of the illegal professionals working in Britain. loans are reportedly beaten up or Every day, thousands of jobs threatened with violence, while are being cut across the sectors in some loan sharks hold people to Britain. Official figures suggest that ransom by keeping their bank unemployment figure is reaching cards, Post Office books or even the 2 million mark, for the first turn to their friends or relatives to time since the mid-1990s. pay the debt. Jacqui Smith, the home A spokeswoman for the secretary, has announced plans to airlines put together. Mr Wissner- government-funded Stop Loan force thousands of nursing, Gross’s study found a typical Sharks project, said: “Loan sharks primary teaching, hotel Google search on a desktop prey on the most vulnerable management and other ‘skilled computer produces about 7g members of society and are often migrant’ jobs to be advertised in (0.25oz) of carbon dioxide. engaged in a wider web of illegal employment agencies such as The Harvard academic argues or dangerous activity. Jobcentre Plus. that these carbon emissions stem “We have unearthed crimes Smith said “When it comes to from the electricity used by the including kidnapping, immigration, in difficult economic computer terminal and by the counterfeiting, assault, wounding, times, I believe we need a tough power consumed by the large data blackmail and sexual intimidation. system that offers British workers centres operated by Google around They work within a community, the first crack of the whip for jobs the world. often starting out as a ‘friend’, here.”
34 SWADESHI PATRIKA February - 2009 International
World Bank bans Wipro, the names of all the companies that meeting. Megasoft, Satyam have been debarred from receiving Delivering the 10th D. T. direct contracts from the Bank Lakdawala memorial lecture on Even before the dust settled group under its corporate ‘Crises Today and the Future of on the controversy involving procurement programme. Capitalism,’ the noted economist Satyam’s debarment, the World “This change was made in the said the problem – essentially a U.S. Bank revealed that action has been interest of fairness and export – had to be tackled globally. taken against a total of five entities transparency... From now on the India and China, he added, had not in India, including Wipro Bank group would publicly list suffered much from the meltdown Technologies, and an individual. names of companies debarred because they did not liberalise their The action was initiated from its corporate procurement.” capital and financial markets against these entities and individual despite U.S. nudging the two as they were found to have Need to design a new countries in this direction “just so “violated the fraud and corruption global system that you could experience what we provisions of the Procurement did!” Guidelines or the Consultant Making out a case for a global U.S. exporting recession to the Guidelines,” besides offering regulatory authority, he said there world, says Stiglitz Every successful improper benefits to Bank staff. was a need to design a new global economy is a market economy Megasoft became the third system to develop immunity or at Nobel laureate Joseph Stiglitz Indian software vendor to have least limit the consequences of attracted the Bank’s ire, while failure. Failure was contagious in Nestor Pharmaceuticals and Gap the present brand of globalisation International were non-IT entities. as a result of which the U.S. was An individual Surendra Singh was exporting its recession to the rest barred from doing business with of the world. the Bank for violating guidelines. While there was recognition of While Wipro was barred for the importance of a coordinated four years beginning June 2007 for global fiscal and monetary response, he said the required reforms went deeper, and included creating a new global reserve system and a new global financial at the 10th D.T. Lakdawala regulatory authority. And he memorial lecture on ‘Crises Today underlined that globalisation had to and the Future of Capitalism,’ in ensure the maximum good for the New Delhi on Saturday. maximum numbers and not just Nobel laureate Joseph Stiglitz the privileged few who got richer has urged India and China to use under the existing regime. the G-20 forum to press for a Holding forth for nearly two change in the global financial hours, the former chief economist architecture that has been so “providing improper benefits to of the World Bank carried the disastrous for the world. Bank staff ”, Megasoft barred for audience along right through; Describing the developed an identical period beginning punctuating his lecture – organised world’s decision to consult the G- December 2007 for “participating by Institute of Social Sciences – 20 as a positive outcome of the in a joint venture with Bank staff with digs galore at the U.S., global meltdown, he was of the while also conducting business particularly the Bush view that the two countries should with the Bank.” administration and its response to also speak for the 152 countries In a statement, the World Bank the crisis. which were not invited to the said that it decided to “make public
February - 2009SWADESHI PATRIKA 35 WTO
New database on RTA’s launched A day after escalating a 13-year beef dispute with Brussels, Washington said it had run out of patience The WTO has launched a new database on with European restrictions on imports of poultry regional trade agreements (RTAs). This contains all treated with anti-bacterial chemicals and that it had the relevant documentation received by the WTO no choice but to bring the dispute to the WTO. following notification by a WTO member that an RTA “The poultry treatments at issue have been widely has been established. and safely used in the United States for many years,” The database, which is one of the requirements said Susan Schwab, Bush’s outgoing U.S. trade of the General Council’s Transparency Decision on representative. “The EU’s own scientists have RTAs, contains all the notifications, links to the repeatedly found these treatments not only to be safe, content of the relevant RTAs, legal provisions and but effective.” information on the WTO’s assessments of the RTAs. Schwab said the U.S. — the world’s largest poultry India to drag EU to WTO producer — has tried to resolve the dispute through dialogue over 11 years. But the EU has failed to offer The tussle between Indian generic drug industry “any legitimate, science-based reason for continuing and western innovative pharmaceutical firms is set to to block our poultry,” she said. get stronger as India is considering dragging the The four “pathogen-reduction treatments” in the European Union to WTO on the issue. dispute are chlorine dioxide, acidified sodium chloride, India’s $12-billion pharmaceutical industry, gets trisodium phosphate and peroxyacids. Each has been 40% of its revenue from exports of approved for poultry processing by the generic drugs across the world, of which U.S. Food and Drug Administration and a large part goes to the EU and the US the U.S. Department of Agriculture, but markets. However, it constantly comes the EU has blocked poultry carcasses under fire from large pharma companies processed with such treatments since in these region in the name of patent 1997. infringement. Setback for China in “It is a very concerted move by MNCs car parts case to disrupt the growth of Indian generic industry,”commerce secretary Gopal Pillai said. ‘WTO has circulated the Appellate Body report Underscoring the need for unity of the in the case brought by the European Union (EU), US developing nations on the issue he said, “we may have and Canada against China’s taxes on imported car to take the issue to the WTO and challenge it...we parts, thereby corroborating China’s contravention of would be seeking consultation with the EU.” trade law in the car parts case. Under the WTO rules, before a country takes The Appellate Body confirms the WTO panel another member to the Dispute Settlement Panel it which decided in July 2008 that the Middle Kingdom gets into the process of “consultations”. If the breached its WTO obligations by fostering a system consultations do not yield into a resolution of the of registration and taxation of imported car parts that issues, the WTO Dispute Settlement Panel starts the patently promoted the use of domestic components proceedings. over imported car parts. In the system Under this system, car USA hauls EU to manufacturers in China have to fork out an additional WTO over poultry ban tax over and above the normal customs duty slapped on imported auto parts, when they do not use a The outgoing administration of U.S. President sufficient quantity of parts made in China. George W. Bush stepped up a last-minute trade assault The system so challenged by trade majors against on the European Union on Friday, filing a new case China is part of China’s “New Automobile Policy” at the World Trade Organization over an EU ban on which was adopted in 2004. American poultry.
36 SWADESHI PATRIKA February - 2009