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Friday, May 21, 2010

UPA Report Card: Drifting From Tragedy To Farce

The Manmohan Singh government completes 6 years in office today. Alas, it has nothing to show by way of achievement except making India an American satellite. As the following assessment by Prakash Karat underlines, if there is an impression of drift and being directionless, the Congress government has only itself to blame for this plight. After thinking it can go ahead with its own policy prescriptions, it now finds itself in a position where its partners in Government often look at things differently and assert themselves.

The present UPA government is completing one year of its tenure on May 22. Unlike the first UPA government, its second edition did not spell out a common minimum programme. Instead, the Congress-led government began by reiterating its commitment to pursue the neo-liberal agenda. It announced that it would take up those policy measures which it could not push through in its first term in office.

The government also promised to bring in some welfare measures for the aam aadmi. On foreign policy, the government stated that it would adhere to the path taken by the first UPA government of aligning India's foreign policy in tune with the strategic alliance with the United States of America.

The one-year of the UPA government has been notable for the following:

Firstly, it has totally failed to tackle the relentless price rise of essential commodities particularly food items. This has been the biggest cause for people's suffering in the past year; for the poor it has meant less food and more hunger and malnutrition.

This is not a "failure" as such but an outcome of the determination to pursue neo-liberal policies. Food items and other essential commodities are traded and speculated in the market in a big way. The forward trading system is the playground for big trading companies and corporates. The government is in the least interested in curbing these interests who are making huge profits.

Secondly, the Congress-led government is in the grip of finance capital and the sway of big business. It believes in cutting taxes for the rich; providing a tax bonanza for big business and maintaining favourable terms for foreign finance speculators.

The Direct Taxes Code which the government proposes to usher in will make India one of the least taxed countries as far as the rich are concerned. In the last financial year, the government provided Rs. 80,000 crore of tax concessions to the corporates. The disinvestment of shares in the profitable public sector units is the favoured agenda of both Indian big business and the US corporate interests.

Every sphere of policy making, whether it concerns the pricing of gas, the allocation of telecom spectrum, opening up of mining and minerals, the financial sector, retail trade or allowing foreign educational institutions into the country - bears the imprint of a government pandering to big business and their foreign finance collaborators.

Thirdly, this type of growth under the neo-liberal regime has spawned crony capitalism. The nexus between big business and politics has become the hallmark of the Congress regime. The legitimacy provided to foreign capital flows from dubious sources through the Mauritius route and other tax havens; the huge illegal mining business flourishing under political protection; the refusal to discipline and penalize law breaking and tax evasions on a large scale on the part of the super rich - all this has promoted a unhealthy and perverted capitalism which is celebrated as India's growth story.

What this has produced is corruption and illegality on a large scale which affects every sphere of society. The first year of the government has seen the IPL affair, the 2G spectrum allocation scam and the mining scandal of the Reddy brothers. All this can be directly sourced to the nexus between big business and ruling politicians.

Fourthly, the UPA government's concern for the aam aadmi has proved to be shallow. The Congress and the UPA government are conscious that some relief has to be provided to the people who are the worst victims of the neo-liberal policies.

During the UPA I tenure, the National Rural Employment Guarantee Act, the farm loan waiver and the Forest Rights Act were some such measures. These were part of the Common Minimum Programme and came into being mainly due to the consistent pressure and struggles waged by the Left parties.

However, under the UPA II, the government has failed to legislate even one substantial measure for relief. The proposed Food Security Bill would have in no way enhanced food security for the people.

After one year, the government is still debating how to bring about such a measure. The Public Distribution System has been further weakened and curtailed. The plight of the farmers does not seem to concern the government which has cut the fertilizer subsidy by Rs. 3000 crore in the current Union budget.

The Common Minimum Programme of the first UPA government had promised to increase public expenditure in education to 6 per cent of the GDP and in the sphere of health to 2 to 3 per cent of the GDP.

As far as education is concerned the combined central and state expenditure is still below 4 per cent. In the case of health the combined budgetary allocation of the Union and state budgets was a meager 1.06 per cent of the GDP in 2009-10, far below the target of 2-3 per cent.

Fifthly, the UPA government has failed to utilize the favourable political atmosphere and the strength of the secular forces in parliament to push for firm anti-communal measures. It seems visibly reluctant to come to terms with the Ranganath Mishra Commission report recommending reservation for the minorities on the basis of their socio-economic backwardness. There has been a noticeable lack of political initiative in dealing with the simmering problem of Kashmir.

As far as tackling the Maoist violence is concerned, the UPA government tends to treat it solely as a law and order problem without realizing that some of its own policies like the licence for indiscriminate mining in the forest areas is alienating the tribal people.

Moreover, it finds itself hampered by its own partner in government, the TMC. Mamata Banerjee has declared that there are no Maoists in West Bengal and therefore there is no need for joint operations against them.

Sixthly, foreign policy under the Manmohan Singh Government has remained steadfast in its fealty to the United States. As a quid pro quo for the nuclear deal, India has agreed to buy billions of dollars of US arms and equipment.

The End Use Monitoring Agreement which would allow American inspections on Indian soil was signed. The Civil Nuclear Liability Bill which has been introduced in parliament to meet the demand of the United States is patently against the interests of the Indian people. The growing military and security collaboration with the US and Israel affects the pursuit of an independent policy.

India has gone along with the United States which is targeting Iran on the nuclear issue. It once more voted against Iran in the IAEA, unlike other non-aligned countries. India is not playing the role of a leading non-aligned country.

In contrast, President Lula De Silva of Brazil has stood up to the United States and refused to go along with the campaign for further sanctions on Iran. President Lula has visited Tehran for talks with the Iranian leadership to find a way out of the impasse and to come to some agreement with the help of Turkey.

One of the few positive aspects in foreign policy is the Prime Minister's refusal to adopt a confrontationist stance towards Pakistan despite what sections in his government and party wish.

The great potential of shaping an independent foreign policy and strengthening of multi-polarity by India's vigorous diplomacy and energising forums like the BRIC, IBSA and the trilateral meetings of the foreign ministers of Russia, China and India is being underplayed.

Politically, the striking outcome of the first year of the UPA government is its increasing vulnerability. In May 2009, the UPA won the elections but failed to get a majority. The Congress leadership ignored this reality and became complacent with the unilateral declaration of support by parties like the BSP, SP, RJD and the JD(S). By the end of the first year that complacency has been shattered.

During the last budget session, the Congress had to adopt the tactic of bargain and striking deals to garner support from amongst these parties. The last three weeks of the budget session have witnessed the manouevres to prop up the government's majority against the cut motions and the struggle to ensure the passage of legislations.

The cynical use of the CBI for political purposes is undermining the credibility of the agency. The wheeling and dealing that saw the postponement of the Women's Reservation Bill in the Lok Sabha and the introduction of the Civil Nuclear Liability Bill - all portend a tortuous path for the future.

If there is an impression of drift and being directionless, the Congress government has only itself to blame for this plight. After thinking it can go ahead with its own policy prescriptions, it now finds itself in a position where its partners in Government often look at things differently and assert themselves. There is growing opposition within parliament.

As far as the people are concerned, their experience is of a government increasingly callous to their sufferings due to price rise, while it showed great solicitude for big business and the corporates when it felt the impact of the global recession.

After the first six months of the government, there has been the rising tempo of popular struggles and movements. A peak in this struggle was reached with the April 27 hartal called by the 13 opposition parties. A spate of struggles of different sections of the working people have taken place. The struggle is on against the harmful policies of the government and to defend the livelihood and the rights of the working people. The question is whether the UPA government has learnt any lessons from its first year in office.

Friday, May 14, 2010

10 Top Robber Barons

The financial crisis has unveiled a new set of public villains—corrupt corporate capitalists who leveraged their connections in government for their own personal profit. During the Clinton and Bush administrations, many of these schemers were worshiped as geniuses, heroes or icons of American progress. But today we know these opportunists for what they are: Deregulatory hacks hellbent on making a profit at any cost. Without further ado, here are the 10 most corrupt capitalists in the US economy.

1. Robert Rubin
Where to start with a man like Robert Rubin? A Goldman Sachs chairman who wormed his way into the Treasury Secretary post under President Bill Clinton, Rubin presided over one of the most radical deregulatory eras in the history of finance. Rubin's influence within the Democratic Party marked the final stage in the Democrats' transformation from the concerned citizens who fought Wall Street and won during the 1930s to a coalition of Republican-lite financial elites.

Rubin's most stunning deregulatory accomplishment in office was also his greatest act of corruption. Rubin helped repeal Glass-Steagall, the Depression-era law that banned economically essential banks from gambling with taxpayer money in the securities markets. In 1998, Citibank inked a merger with the Travelers Insurance group. The deal was illegal under Glass-Steagall, but with Rubin's help, the law was repealed in 1999, and the Citi-Travelers merger approved, creating too-big-to-fail behemoth Citigroup.

That same year, Rubin left the government to work for Citi, where he made $120 million as the company piled up risk after crazy risk. In 2008, the company collapsed spectacularly, necessitating a $45 billion direct government bailout, and hundreds of billions more in other government guarantees. Rubin is now attempting to rebuild his disgraced public image by warning about the dangers of government spending and Social Security. Bob, if you're worried about the deficit, the problem isn't old people trying to get by, it's corrupt bankers running amok.

2. Alan Greenspan
The officially apolitical, independent Federal Reserve chairman backed all of Rubin's favorite deregulatory plans, and helped crush an effort by Brooksley Born to regulate derivatives in 1998, after the hedge fund Long-Term Capital Management went bust. By the time Greenspan left office in 2006, the derivatives market had ballooned into a multi-trillion dollar casino, and Greenspan wanted his cut. He took a job with bond kings PIMCO and then with the hedge fund Paulson & Co.—yeah, that Paulson and Co., the one that colluded with Goldman Sachs to sabotage the company's own clients with unregulated derivatives.

Incidentally, this isn't the first time Greenspan has been a close associate of alleged fraudsters. Back in the 1980s, Greenspan went to bat for politically connected Savings & Loan titan Charles Keating, urging regulators to exempt his bank from a key rule. Keating later went to jail for fraud, after, among other things, putting out a hit on regulator William Black. ("Get Black – kill him dead.") Nice friends you've got, Alan.

3. Larry Summers
During the 1990s, Larry Summers was a top Treasury official tasked with overseeing the economic rehabilitation of Russia after the fall of the Soviet Union. This project, was, of course, a complete disaster that resulted in decades of horrific poverty. But that didn't stop top advisers to the program, notably Harvard economist Andrei Shleifer, from getting massively rich by investing his own money in Russian projects while advising both the Treasury and the Russian government. This is called "fraud," and a federal judge slapped both Shleifer and Harvard itself with hefty fines for their looting of the Russian economy. But somehow, after defrauding two governments while working for Summers, Shleifer managed to keep his job at Harvard, even after courts ruled against him.

That's because after the Clinton administration, Summers became president of Harvard, where he protected Shleifer. This wasn't the only crazy thing Summers did at Harvard—he also ran the school like a giant hedge fund, which went very well until markets crashed in 2008. By then, of course, Summers had left Harvard for a real hedge fund, D.E. Shaw, where he raked in $5.2 million working part-time. The next year, he joined the the Obama administration as the president's top economic adviser. Interestingly, the Wall Street reform bill currently circulating through Congress essentially leaves hedge funds untouched.

4. Phil and Wendy Gramm
Summers, Rubin and Greenspan weren't the only people who thought it was a good idea to let banks gamble in the derivatives casinos. In 2000, Republican Senator from Texas Phil Gramm pushed through the Commodity Futures Modernization Act, which not only banned federal regulation of these toxic poker chips, it also banned states from enforcing anti-gambling laws against derivatives trading. The bill was lobbied for heavily by energy/finance hybrid Enron, which would later implode under fraudulent derivatives trades. In 2000, when Phil Gramm pushed the bill through, his wife Wendy Gramm was serving on Enron's board of directors, where she made millions before the company went belly-up.

When Phil Gramm left the Senate, he took a job peddling political influence at Swiss banking giant UBS as vice chairman. Since Gramm's arrival, UBS has been embroiled in just about every scandal you can think of, from securities fraud to tax fraud to diamond smuggling. Interestingly, both UBS shareholders and their executives have gotten off rather lightly for these acts. The only person jailed thus far has been the tax fraud whistleblower. Looks like Phil's earning his keep.

5. Jamie Dimon
J.P. Morgan Chase CEO Jamie Dimon has done a lot of scummy things as head of one of the world's most powerful banks, but his most grotesque act of corruption actually took place at the Federal Reserve. At each of the Fed's 12 regional offices, the board of directors is staffed by officials from the region's top banks. So while it's certainly galling that the CEO of J.P. Morgan would be on the board of the New York Fed, one of J.P. Morgan's regulators, it's not all that uncommon.

But it is quite uncommon for a banker to be negotiating a bailout package for his bank with the New York Fed, while simultaneously serving on the New York Fed board. That's what happened in March 2008, when J.P. Morgan agreed to buy up Bear Stearns, on the condition that the Fed kick in $29 billion to cushion the company from any losses. Dimon-- CEO of J.P. Morgan and board member of the New York Fed-- was negotiating with Timothy Geithner, who was president of the New York Fed-- about how much money the New York Fed was going to give J.P. Morgan. On Wall Street, that's called being a savvy businessman. Everywhere else, it's called a conflict of interest.

6. Stephen Friedman
The New York Fed is just full of corruption. Consider the case of Stephen Friedman (expertly presented by Greg Kaufmann for the Nation). As the financial crisis exploded in the fall of 2008, Friedman was serving both as chairman of the New York Fed and on the board of directors at Goldman Sachs. The Fed stepped in to prevent AIG from collapsing in September 2008, and by November, the New York Fed had decided to pay all of AIG's counterparties 100 cents on the dollar for AIG's bets—even though these companies would have taken dramatic losses in bankruptcy. The public wouldn't learn which banks received this money until March 2009, but Friedman bought 52,600 shares of Goldman stock in December 2008 and January 2009, more than doubling his holdings.

As it turns out, Goldman was the top beneficiary of the AIG bailout, to the tune of $12.9 billion. Friedman made millions on the Goldman stock purchase, and is yet to disclose what he knew about where the AIG money was going, or when he knew it. Either way, it's pretty bad—if he knew Goldman benefited from the bailout, then he belongs in jail. If he didn't know, then what exactly was he doing as chairman of the New York Fed, or on Goldman's board?

7. Robert Steel
Like better-known corruptocrats Robert Rubin and Henry Paulson, Steel joined the Treasury after spending several years as a top executive with Goldman Sachs. Steel joined the Treasury in 2006 as Under Secretary for Domestic Finance, and proceeded to do, well, nothing much until financial markets went into free-fall in 2008. When Wachovia ousted CEO Ken Thompson, the company named Steel as its new CEO. Steel promptly bought one million Wachovia shares to demonstrate his commitment to the firm, but by September, Wachovia was in dire straits. The FDIC wanted to put the company through receivership—shutting it down and wiping out its shareholders.

But Steel's buddies at Treasury and the Fed intervened, and instead of closing Wachovia, they arranged a merger with Wells Fargo at $7 a share—saving Steel himself $7 million. He now serves on Wells Fargo's board of directors.

8. Henry Paulson
His time at Goldman Sachs made Henry Paulson one of the richest men in the world. Under Paulson's leadership, Goldman transformed from a private company ruled by client relationships into a public company operating as a giant global casino. As Treasury Secretary during the height of the financial crisis, Paulson personally approved a direct $10 billion capital injection into his former firm.

But even before that bailout, Paulson had been playing fast and loose with ethics rules. In June 2008, Paulson held a secret meeting in Moscow with Goldman's board of directors, where they discussed economic prognostications, market conditions and Treasury rescue plans. Not okay, Hank.

9. Warren Buffett
Warren Buffett used to be a reasonable guy, blasting the rich for waging "class warfare" against the rest of us and deriding derivatives as "financial weapons of mass destruction." These days, he's just another financier crony, lobbying Congress against Wall Street reform, and demanding a light touch on—get this—derivatives! Buffet even went so far as to buy the support of Sen. Ben Nelson, D-Nebraska, for a filibuster on reform. Buffett has also been an outspoken defender of Goldman Sachs against the recent SEC fraud allegations, allegations that stem from fancy products called "synthetic collateralized debt obligations"—the financial weapons of mass destruction Buffett once criticized.

See, it just so happens that both Buffet's reputation and his bottom line are tied to an investment he made in Goldman Sachs in 2008, when he put $10 billion of his money into the bank. Buffett has acknowledged that he only made the deal because he believed Goldman would be bailed out by the U.S. government. Which, in fact, turned out to be the case, multiple times. When the government rescued AIG, the $12.9 billion it funneled to Goldman was to cover derivatives bets Goldman had placed with the mega-insurer. Buffett was right about derivatives—they are WMD so far as the real economy is concerned. But they've enabled Warren Buffett to get even richer with taxpayer help, and now he's fighting to make sure we don't shut down his own casino.

10.  Goldman Sachs
No company exemplifies the revolving door between Wall Street and Washington more than Goldman Sachs. The four people on this list are some of the worst offenders, but Goldman's D.C. army has includes many other top officials in this administration and the last.

White House: 
 Joshua Bolton, chief of staff for George W. Bush, was a Goldman man

Regulators:
Current New York Fed President William Dudley is a Goldman man

Current Commodity Futures Trading Commission Chairman Gary Gensler has been a responsible regulator under Obama, but he was a deregulatory hawk during the Clinton years, and worked at Goldman for nearly two decades before that.

A top aide to Timothy Geithner, Gene Sperling, is a Goldman man

Current Treasury Undersecretary Robert Hormats is a Goldman man

Current Treasury Chief of Staff Mark Patterson is a former Goldman lobbyist

Former SEC Chairman Arthur Levitt is now a Goldman adviser

Neel Kashkari, Henry Paulson's deputy on TARP, was a Goldman man

COO of the SEC Enforcement Division Adam Storch is a Goldman man

Congress:
Former Sen. John Corzine, D-N.J., was Goldman's CEO before Henry Paulson

Rep. Jim Himes, D-Conn., was a Goldman Vice President before he ran for Congress

Former House Minority Leader Dick Gephardt, D-Mo., now lobbies for Goldman

And the list goes on.
Zach Carter/AlterNet

Tuesday, May 11, 2010

Oppose The Nuclear Liability Bill

The recent radioactive poisoning death in Delhi has once again highlighted the fact that the Civil Nuclear Liability Act being foisted on the nation will only help American companies get away with murder just as Union Carbide did after killing and maiming thousands in Bhopal. In the Mayapuri case one person died after coming into contact with a radioactive pencil that was disposed of by Delhi University as scrap, the vice chancellor appeared on TV to offer only an apology. No talk of compensation. This is going to be repeated on a horrific scale in case of an accident at nuclear power plants proposed to be built across the country. Sitaram Yechury argues why this the Civil Nuclear Liability Bill must be opposed 

On the last day of the budget session of Parliament, the government hurriedly introduced the Civil Nuclear Liability Bill amid largescale protests by the Opposition.

The Left had opposed the introduction of the Bill itself on the grounds of violation of Article 21 of the Constitution, which guarantees protection of life and personal liberty.

Former Attorney General Soli Sorabjee says, “In view of Supreme Court judgements which are part of Indian jurisprudence and whose thrust is for the protection of victims of accidents as part of their fundamental rights under Article 21 of the Constitution there is no warrant or justification for capping nuclear liability.”

However, it is precisely such a cap that the Civil Nuclear Liability Bill introduces.
The proposed Bill has sought to limit all liability arising out of a nuclear accident to only 300 million Special Drawing Rights (about $450 million) and the liability of the operator only to Rs 300 crore.

The difference between $450 million and Rs 300 crore (about $67 million) is the government’s liability. Given that a serious accident can cause damage in billions, the small cap of $450 million that’s been proposed shows the scant regard the the UPA has for the people.

The Bhopal Settlement of $470 million reached between the government of India and Union Carbide and accepted by the Supreme Court, has been shown to be a gross underestimation. Even today, gas victims are suffering and have received only meagre compensation.

It is unconscionable of the UPA government to suggest that all nuclear accidents, which have the potential of being much larger than Bhopal, be capped at a figure that has already been shown to be a gross underestimate. Since the government wants to allow private operators in the nuclear power sector, this low level for compensation is meant to serve their interests too.

Apart from this, the minuscule liability of Rs 300 crore for the actual operator is tantamount to encouraging the operator to play with plant safety.

The Indian legal regime is quite clear: for hazardous industries, the plant owners have strict liability. Neither does the law accept any limits to liability — the party concerned must not only pay full compensation but also the cost of any environmental damage that any accident may cause. The Oleum leak from Sriram Food and Fertility settled the liability regime in India and any legislation seeking to cap liability will be completely retrogressive.

Contrary to the claims being made, the Vienna Convention — the basis of the proposed Nuclear Liability Bill — does not cap nuclear liability but only puts a minimum floor. It also allows countries to operate their liability regimes. For example, Germany, Japan and Finland all have unlimited liability, the same as current Indian law.

The US has a liability cap of $10.2 billion. Not only is the Indian government proposing to cap liability of nuclear plants, but it is also proposing a cap of only $450 million, way below the consequences of any serious nuclear accident. It appears that in order to promote private nuclear power and foreign suppliers, the UPA government is willing to sacrifice its own people.

The suppliers’ liability is also being considerably weakened by the proposed Bill. Instead of the normal contract law, where recourse of the operator to claim damages is inherent, the Bill limits this recourse only if it is explicitly mentioned in the contract. Otherwise, the nuclear operator cannot claim compensation from the supplier of equipment even if it is shown to be faulty.

It is evident that contracts for buying US nuclear reactors will explicitly exclude any liability on the part of the suppliers and, therefore, by the law to be adopted, they will go scot-free even if an accident occurs due to a defect in the equipment supplied by a US company. 

In fact the UPA-II government wanted such a legislation, which the prime minister could carry with him to the Nuclear Security Summit that President Obama convened in Washington in April. However, following the controversial passage of the Women’s Reservation Bill in the Rajya Sabha with the help of marshals, the crucial support of 47 Lok Sabha MPs belonging to the BSP, SP and RJD was not forthcoming.

This obstacle, however, appears to have been overcome now through possibly some ‘bargain’ similar to what happened at the time of the passage of the Indo-US nuclear deal.

The US is insisting that this law be enacted to protect US suppliers of nuclear equipment from liability to pay compensation in the case of a nuclear accident. Currently, only the State-run Nuclear Power Corporation of India Ltd. under the existing Atomic Energy Act can operate nuclear power plants. But with the opening up of international nuclear commerce, US companies have sought a civil nuclear liability framework to be put in place before they enter.

The US government has linked the completion of the Indo-US nuclear agreement to India’s capping of nuclear liability. The UPA-I government, prior to the ratification of the 123 Agreement, had given a written commitment that India will buy nuclear reactors from the US totalling 10,000 megawatt of capacity.

This Bill has now been referred to the parliamentary standing committee for its consideration. It will now be tabled in the monsoon session. It is imperative for all political parties to ensure that the government is not allowed to disregard the life and safety of the Indian people through such a legislation. Article 21 of the Constitution and the various judgements of the Supreme Court cannot be allowed to be violated.

Saturday, May 8, 2010

Higher Education As Profit Centre

The case for allowing foreign players in the higher education sector in India is weak and controversial and simply a ploy to create a window for foreign players and then changing the rules of the game in ways that persuade them to exploit the opportunity.

HRD Minister Kapil Sibal finally managed on May 3 to introduce in the Lok Sabha the Foreign Educational Institutions (Regulation and Entry and Operations) Bill 2010 amid protest by Left MPs to the proposed law.

The bill proposes that institutions aspiring to set up campuses in India will have to deposit Rs 50 crore as corpus fund. They will have to be registered with with UGC or any other regulatory body in place.

The bill, however, gives exemption to reputed foreign institutes from the tough conditions set for opening up campuses in India. The reputed universities will not have to go through the rigorous process of approval.

An advisory board will will recommend permission for such universities like Harvard, Yale, Cambridge, Oxford and similar institutions. They will not be required to deposit any corpus money.

However, the clause that foreign institutions cannot take away surplus money back to their respective countries also applies to all foreign institutions, including the reputed ones.

The bill stipulates a number of criteria for ensuring quality. The aspiring institute need to have minimum 20 years of standing in the country to which it belongs. It should have adequate finance and other resources to conduct the courses in India.

The bill says that an aspiring institution will apply for recognition as Foreign Education Provider in India. The application will be scrutinised by the accreditation authority and the UGC or any other commission in higher education. The commission will recommend to the government on whether the institute should be given recognition.

However, the bill, which is being referred to a parliamentary Standing Committee, raises more questions. My friend CP Chandrashekhar, professor of economics at JNU in New Delhi, argues that the case for allowing foreign players in the higher education sector in India is weak and controversial and simply a ploy to create a window for foreign players and then changing the rules of the game in ways that persuade them to exploit the opportunity.

There are two arguments, among many, that are being advanced to justify this desire for the foreign. The first is that it would substantially enhance quality in both the new institutions that would be set up by these foreign entities and, by example and the pressure of competition, in old and new institutions created by public and private Indian promoters. The second is that it would close the supply-demand gap.

The supply of higher educational facilities relative to requirements in this country is seen as so large that the government or Indian private players would not have the resources to fill the gap.

To clarify, the resources that the foreign entities would bring could not be real resources like faculty, administrators and material inputs like classrooms, libraries and labs. Foreign providers would have to find these resources largely from within the country, just as Indian promoters would have to, since importing all of it would make things so expensive that the investment would not make sense unless the intention is merely to throw away the money. “Resources” here means the requisite money.

Neither of the arguments—enhancing quality and augmenting supply—is particularly convincing even for those who are enamoured by these foreign brands and what they could contribute to the making of the modern Indian mind.

It is not that foreigners were barred from coming into the country in the past. They could through many routes subject to certain rules. But either because of the rules or because of mere disinterest not many big names even gave a thought to have an independent presence here (as opposed to collaborating in different ways with domestic institutions).

On the other hand, it is not true that no foreign institutions came into this country. Some did. But they were not the well known and what they offered here did not compare at all with the best or even less than best that Indian educational providers were offering. Both in terms of presence and quality history does not give cause for optimism.

The question then is, are the rules being changed to accommodate the foreign? The government states that it is only clarifying the rules and regulatory framework that would apply to foreign educational providers, and that in itself would serve to attract them to the country.

It is true that if foreign institutions are to be allowed at all, to provide education of any kind in the country, it is better that they operate within an appropriate framework of regulation. If not, unscrupulous operators can use the “foreign” tag to exploit poorly informed students who do not have the scores to enter a good national educational institution or the finances to travel abroad to acquire a good education.

In an environment where good higher educational facilities are in short supply, such operators could get away with charging high fees for courses backed by inadequately qualified faculty, inferior infrastructure and substandard equipment.

This has in recent years been a reality in India because of a mismatch between the law on foreign investment in educational provision and the law with regard to the functioning of “recognised” educational institutions.

The foreign investment law in this country does allow foreign educational providers to enter India under the automatic route in the educational services area. It therefore allows for commercial provision of educational services by foreigners and the repatriation of surpluses or “profits” earned through such activity.

However, the nature of such services must be “informal”. If an educational service provider (foreign or domestic) chooses to establish an institution that is termed a university and is recognised as such by the University Grants Commission (UGC) or if it awards a degree or diploma that is recognised by a range of institutions such as the All India Council on Technical Education (AICTE) or the Medical Council of India, then it would be subject to regulation just as any other Indian institution engaging in similar practices. That is, there is no separate set of rules to recognise and regulate foreign institutions.

This implies that recognised foreign educational institutions cannot (like private Indian ones) operate on a “for-profit” basis. Surpluses can be generated based on fees charged, but those surpluses have to be ploughed back into the institution.

This distinction in the regulatory framework, applying to institutions seeking recognition of their degrees and those that do not, did result in the proliferation of courses that are not recognised by government, in institutions that were, therefore, not subject to regulation under laws governing the higher education system.

Most of these institutions were in the private sector, with a majority being domestic private institutions and a few foreign. Some were good, many extremely bad. These institutions were not all avowedly “for-profit” entities, but there were many that made large surpluses legally and otherwise and distributed them in various ways to their promoters.

In some ways, what the Foreign Educational Institutions Bill does is that it seeks to bring certain of those foreign institutions within a separate, clearly defined regulatory framework, requiring institutions providing diplomas and degrees to register under a designated authority, making them subject to regulation and seeking under such regulation to ensure that the promoting institution has a proper pedigree, brings in adequate resources, employs quality faculty, offers adequate facilities, and reinvests all surpluses in the institution, which cannot function for profit.

However, even though these are not considered for-profit institutions, the government is not seeking to regulate the fees they charge the students they take in, set parameters for compensation for faculty, or impose demands such as reservation of seats for disadvantaged sections as it does in its own institutions.

There are three questions which arise in this context. One is whether the implementation of the Bill amounts to skewing further the inequality in access to higher education and tilting the playing field against public institutions. Clearly, the Bill does not allow for the application of laws with regard to affirmative action in the form of reservation of admissions to private institutions, domestic or foreign.

But if the infrastructure for higher education is inadequate, this is true not just for those who fall in what is termed the “general category”, but for those in the reserved categories as well, who need adequate numbers of seats to be reserved for them.

So if private, including foreign institutions, are seen as entities that would help close the demand-supply gap in higher education, they would need to service students in the categories eligible for affirmative action as well.

Since the aim of promoting private education, including that offered by foreign providers, is to make up for the shortfall in public education, the demand that reserved category students be admitted to these institutions with support from the state is bound to rise.

State money would provide access to the socially and economically disadvantaged to private institutions. That is, while the state is not going to regulate fees, it may be forced to demand some reservation by covering the fees charged by these institutions for those it wants to assure the access they are deprived of because of the social discrimination they face.

The obvious question that would then arise is whether it may not be better to use these funds to expand quality public education at lower cost per student. Hence, clarity on the government’s use of these institutions for closing the demand-supply gap would be useful.

If the direction of policy in other areas is indicative, the public-private partnership mantra would be used to justify supporting private provision by funding access to the disadvantaged with no regulation of costs or prices. In fact, the likelihood is that the implicit control would be on the “subsidy” offered to needy students, who then may have to make do with entry into poorer quality institutions.

A second question that arises is whether the better among foreign educational providers are likely to choose not to come into the country if stringent regulations are imposed on them.

With budgetary cuts for education in developed countries and with demographic changes affecting the size of the domestic college-going population in these countries, universities there may like to go abroad if they can earn surpluses to support domestic operations.

But if regulation includes the “not-for-profit” condition, which prevents them from extracting surpluses and transferring them abroad, they may see no reason to be in India.

Perhaps for this reason, the Act for the possibility that its provisions can be diluted. For example, as of now the Act provides for the constitution of an Advisory Board that can exempt any foreign provider of all requirements imposed by the Act except the requirement of being a not-for-profit body.

It also exempts institutions conducting any “certificate course” and awarding any qualification other than a degree or diploma to be exempt from most of the provisions of the Act, making them subject only to certain reporting requirements.

This amounts to saying that if a foreign provider enters the country, reports its presence, and advertises and runs only such “certificate courses” (as opposed to courses offering degrees and recognised diplomas), it would have all the rights that many of the so-called “fly-by-night” operators exploit today.

Once that possibility is recognised the only conclusion that can be drawn, based on the experience hitherto, is that this Act in itself is unlikely to either bring high quality education into the country, or keep poor quality education out. What motivates it, is therefore, unclear.

This raises the third question as to whether this bill is just the thin end of the wedge.

If foreign providers do not come in requisite measure, would the government use that “failure” to dilute the law even further and provide for profit and its repatriation by foreign operators in this sector?

Some time back, the commerce ministry had put out a consultation paper clearly aimed at building support for an Indian offer on education in the negotiations under the General Agreement on Trade in Services (GATS). The paper, while inviting opinions on a host of issues, was clearly inclined to offering foreign educational providers significant concessions that would facilitate their participation in Indian education.

In its view: “Given that India’s public spending, GER (gross enrolment ratio) levels and private sector participation are low, even when compared to developing countries, there appears to be a case for improving the effectiveness of public spending and increasing the participation of private players, both domestic and foreign.”

GATS is a trading agreement and therefore applies to those engaged in trade in services for profit. Providing such concession would force a fundamental transformation of the face of higher education in the country.

Put all of this together and both the motivation and the likely outcome of this bill remain unclear. If the intent is to attract new, more and better foreign investment in higher education to close the demand-supply gap, then the specific framework being chosen is likely to subvert its intent.

If the idea is to regulate only those who have been coming and would come, then a separate law just for foreign operators as opposed to all non-state players is inexplicable.

This suggests that the process underway is one of creating a window for foreign players and then changing the rules of the game in ways that persuade them to exploit the opportunity. This may explain the fear that the field would be skewed against domestic private players.

Thus, the case for this Act is weak and controversial. If the supply of educational facilities is low and of poor quality because public spending is low, the emphasis must clearly be on increasing allocations for education. This is likely to be extremely effective since India has the requisite institutional framework.

But there is no reason to believe, especially given past experience, that just allowing private entry, whether domestic or foreign, and the resources associated with it would indeed improve access and ensure quality. Unless the state pays the bill, which it claims in the first place it cannot.

Monday, April 26, 2010

SA Dange's Daughter Roza Recounts Forgotten Maharashtra's Founding Fathers' Sacrifice

By Bella Jaisinghani & Ashley D’Mello | TNN

Mumbai: With a week to go before the golden jubilee celebrations of Maharashtra, the portraits of the leaders of the Samyukta Maharashtra movement, who won us statehood, should have festooned the city. But there is nothing to remind Mumbai of the state’s founding fathers, save some roads or chowks named after them.

Even in this, not a single road is named after SA Dange, the “Comrade’’ who led from the front and made Pandit Jawaharlal Nehru declare May Day of 1960 as Maharashtra Day rather than “fool the Maharashtrians’’ by doing so on April 1.

Dange’s daughter, the 80-year-old Roza Deshpande, shares her father’s pride in Marathi identity and feels that does not in any way contradict the nationalist spirit. She does not feel the sacrifice of 106 martyrs has come to nought although the issue of Marathi pride and identity lingers 50 years on. “It is only because of poor governance that statehood has achieved little,’’ she says.

Critics ask if the movement for linguistic states was appropriate in the 1950s when the nation had just secured its Independence from foreign rule. “No. Regional pride does not take away from nationalism. Linguistic states were coming up across the country and Leftminded freedom fighters all got involved,’’ says Deshpande.

If the fire in the eyes is undimmed and the power of thought remains razor sharp at 80, credit is due to a sunburnt upbringing amidst the working class population of Prabhadevi and Parel.

Panicking in their unpreparedness meanwhile, officials from the government have been calling Deshpande asking for lists of the men and women who participated in the agitation.

“They have no records or mementos. The assembly does not have a single portrait of either Acharya Atre or my father or S M Joshi, the stalwarts who granted these ministers the state that they run,’’ she says.

Friday, April 2, 2010

Indo-US Nuclear Deal: Kowtowing Again!

In the newest 123 agreement, the US has retained the legal right to unilaterally terminate cooperation but provided political assurances to India that such a right will be exercised only in extraordinary circumstances. A similar approach is mirrored in the reprocessing accord, warns Brahma Chellaney


One more accord has been concluded under the much-trumpeted Indo-US nuclear deal. But like the previous two — the 123 bilateral agreement with the US and the safeguards accord with the International Atomic Energy Agency (IAEA) — the latest agreement, too, will escape scrutiny by the Indian Parliament. The newest agreement involves US consent to India to reprocess spent fuel of American origin.

Is it a good advertisement for the world's most-populous democracy that while the American president will submit the reprocessing agreement to the US Congress for scrutiny, the Indian Parliament will again be shut out from playing any role on this latest accord? How can there be effective checks and balances in a democracy if the executive branch insists that the national legislature has no role to play in any international agreement?

It is only on the nuclear-accident liability issue that the government is coming to Parliament because that involves passing a new law. In fact, it wants Parliament to pass a law that limits liability to a pittance, overturning the doctrine of absolute liability that the Supreme Court has set in response to the Bhopal gas disaster.

The result of blocking Parliament from scrutinising the nuclear deal is that India is now saddled with a deal that does not adequately protect its interests. India has got no legally binding fuel-supply guarantee to avert a Tarapur-style fuel cutoff, and no right to withdraw from its obligations under any circumstance, although the US has reserved the right for itself to suspend or terminate the arrangements.

The terms of the latest reprocessing agreement are in continuation of what the US was able to extract in the 123 bilateral agreement. The US has retained the right to unilaterally suspend its grant of reprocessing consent to India. This is an extension of its right, incorporated in the 123 agreement, to unilaterally suspend or terminate fuel supply to India. That is exactly what the US did in the mid-70s under its previous 123 agreement with India dating back to 1963. As a result, the twin-reactor, US-built Tarapur nuclear power plant near Mumbai, was left high and dry.

In the newest 123 agreement, the US has retained the legal right to unilaterally terminate cooperation but provided political assurances to India that such a right will be exercised only in extraordinary circumstances. A similar approach is mirrored in the reprocessing accord.

Under Article 7 of the reprocessing accord, the reprocessing consent can be suspended on grounds of "national security" or a "serious threat to the physical protection of the facility or of the nuclear material at the facility," and if the party determines "that suspension is an unavoidable measure." So the US right to suspend reprocessing consent is unfettered.

Still, the agreement's article 7 and the accompanying "agreed minute" record political assurances to India that such a right shall be exercised only in special circumstances and after careful thought. But such assurances hold little value when the legal right to suspend reprocessing consent is explicitly recorded in the text.

The actual implementation of the reprocessing agreement is years away, even though US-origin spent fuel has been accumulating in India for nearly 40 years at Tarapur.
India will not be able to reprocess that spent fuel until it has built at least one new dedicated reprocessing facility — a process that will take a number of years. Article 1(3) specifies that the US consent relates to "two new national reprocessing facilities established by the government of India."

Only in those new facilities, approved by the IAEA, can India reprocess the discharged fuel under international inspection. Any additional reprocessing facility can be added only with prior US agreement.

Another feature of the agreement is that it amplifies India's reprocessing obligations with the IAEA, including to provide facility-design information in advance and to allow unhindered international monitoring and verification (article 2). But in addition, the accompanying "agreed minute" obligates India to permit US "consultations visits" to each dedicated reprocessing facility. Every "visiting team of not more than 10 persons" will be permitted onsite access "at a time and duration mutually agreed by the parties."

It is thus apparent that the US has got what it wanted. For example, the state department had earlier notified the US Congress in writing that "the proposed arrangements and procedures with India will provide for withdrawal of reprocessing consent" by the US. That is exactly what the text of the accord provides. Also by providing for US "consultations visits," it effectively permits IAEA-plus inspections.

Had the Parliament been allowed to play a role, the government would have been able to leverage that to fight back one-sided provisions.

Cortesy: DNA

Monday, March 8, 2010

100 Years Of Women's Day (...But The Struggle Still Continues!)

Every day, we hear of the horrors women endure, we shake our heads, forward e-mails, light candles and send solidarity messages. We feel that these are aberrations because most of us feel that “women never had it so good”. And why not - it's a feel-good illusion.

We cry and laugh; we work and take care of our children; we watch President Pratibha Patil, Speaker of Lok Sabha Meira Kumar, UPA Chairperson Sonia Gandhi and now Leader of the Opposition in the Parliament Sushma Swaraj proudly and sigh with relief, believing we've come so far. (The imminent passage of the Women's Reservation Bill will further strengthens this illusion.)

Not only just in politics, even look at the world of finance. In New York and London, women remain scarce among top bankers despite decades of struggle to climb the corporate ladder. But in India’s relatively young financial industry, women not only are some of the top deal makers, they are often running the show.

HSBC, JP Morgan Chase, Royal Bank of Scotland, UBS and Fidelity International in India are run by women. So is the country’s second-biggest bank, ICICI Bank, and its third-largest, Axis Bank. Women head investment banking operations at Kotak Mahindra and JP Morgan Chase and the equities division of ICICI. Half of the deputy governors at the Reserve Bank of India are women.

So women in India are 'shining'!

But is it a reality? Or are we basking in a 'women power' moment that doesn't exist – a mirage of equality that we've been duped into believing is the real thing by the media and the ruling classes in the society.
Because despite the indisputable gains over the years, women are still being discriminated against, harassed, raped, trafficked and violated. And though women's movement continues to fight gender injustices, most people seem to think that outside of a few lingering battles, the work of the women's movement is done.

It's time to stop fooling ourselves. For all our 'empowered' rhetoric, women in this country aren't doing nearly as well as we'd like to think.

India is ranked 113 out of the 130 countries on the Gender Gap Index 2008. Although women represent half or more of the work force in many countries, in the European Union, 9.7 per cent of the board members at the top 300 companies were women in 2008. In the United States, roughly 15 per cent of the board members of the Fortune 500 companies are women, while at the top of Asian companies, women remain scarce: In India, they hold roughly 5 per cent of board seats.

In 2007, the year for which latest data is available from the National Crime Records Bureau (NCRB), seven of the 10 fastest rising crimes in India were those against women. While the incidence of all cognizable crimes under the IPC rose by under 5 per cent over the previous year, dowry deaths registered an increase of 15 per cent, cruelty by husband and relatives by 14 per cent, kidnapping and abduction of females by 13 per cent, importation of girls by 12 per cent and sexual harassment by 11 per cent. Rape and molestation cases grew by a more modest 6-7 per cent, as still many go unreported due to the social stigma, but even that was higher than the average rate.

Despite the increasing cases of crime against women, they would appear to be not in the priority list of the investigating agencies. The NCRB data shows that investigation starts within the same year in only one out of 10 sexual harassment cases and only two out of 10 cases of molestation or cruelty by husbands and relatives.

Similarly, only 3 out of 10 rapes and dowry deaths are investigated within the same year. With one in every two brought to trial getting convicted, sexual harassment might have the highest conviction rate among the 22 major crime heads tabulated in NCRBs Crime in India 2007, but this may have something to do with the fact that sexual harassment is the least severe of all crimes committed against women with the maximum punishment being simple imprisonment for one year, or a fine, or both.

For the other crimes against women, the conviction rates are lower than the 35.8 per cent average conviction rate for all cognizable crimes under IPC.

Everywhere, women still earn less, are more likely to work part time and less likely to hold top jobs.

For several women, still their grandmothers’ maxim — children, kitchen, religion — holds true. Those whom we find at the top echelons in the country today are almost all from wealthy backgrounds, went to excellent schools in India and abroad. They constitute the minuscule minority in the country and it is for them that life is beautiful.

For the majority still it is discrimination, naked and often violent. The work participation rate for females in our country is still 25.7 per cent in the country (Census 2001). The number of women in central government employees in just 7.53 per cent.

A rural female casual labourer earns Rs 20.38 less than their male counterpart and in urban areas the difference is Rs 31.23 (2004-05). This has in fact increased from the earlier calculations done in 1999-2000.

India is ranked 99 among 140 countries in the number of women in parliament, we have only 10.8 per cent women in Lok Sabha and 9 per cent in Rajya Sabha. This is the real 'presence' of women in our country. And even these minuscule are known for their gender than for their capabilities, irrespective of how best to their abilities they perform. Even the 'strong lady' in our Indian history, Indira Gandhi was always forced to state “I am not a woman prime minister, I am a prime minister”.

Remember that even some of the predominantly Islamic countries in our continent, Bangladesh,Indonesia, Malaysia and Pakistan, too had women as heads of the government and that had not changed their status much.

This is a far cry from progress; it's an epidemic of gender discrimination. So where's the outrage? The common refrain is that women here have it too good to complain, which is termed by some as 'enlightened sexism'. Between politics and pop culture, women are being taught that everything is fine and dandy – and a lot of us are buying it. We act as if the hatred directed at women is something of an aberration or as that can be dealt with by a stern talking to – as if the misogyny embedded in our culture is an unruly child rather than systematic oppression.

Yes, women today fare better than our foremothers. But the benchmarks so often cited, the right to vote, working outside the home, laws that make domestic violence illegal, laws that guarantee gender justice, don't change the reality of women's lives.

There are 4 laws relating to protect property rights for women and similarly 15 to protect the rights of working women, 8 to protect from abuse in marriage and prevent dowry related harassment; 14 laws to prevent crimes and assaults on women. Alas, if enacting laws is enough, India would have been long a 'socialist' country as stated in the preamble of our constitution. They don't prevent women from being assaulted, abused and raped.

We do not allow women to take part in large numbers in politics and public life, in spite of many studies pointing that doing so is actually beneficial to the society. The annual Global Corruption Barometer produced by Transparency International, the non-governmental group based in Berlin that monitors international corruption, has shown for the past several years that women are less prone to taking bribes than men.

A 1999 study published by the World Bank claimed that women were more trustworthy and public-spirited than men and concluded that greater representation of women in parliament in a sample of 150 countries in Europe, Africa and Asia led to lower levels of corruption.

Like wise bringing more women into work force, into decision making bodies, both inside homes and outside, are also a no-no for us. (Oh, I just forgot, yes we do bring women to work, to pay them less and fleece them more).

There is so much more work to be done. The truth is, most women don't have the privilege of being able to look at gender justice from a distance; they have no choice but to live it every day. Those of us who are lucky enough not to have to think about gender discrimination, racism, poverty and homophobia on a daily basis, those of us who have the privilege of 'living life', have a responsibility to open our eyes to the misogyny right in front of us. And then to stop it.

Women's Day is not a day on the calendar, or even a special day to exchange pleasantries, greetings and gifts or make wishes. It is a day to strengthen our resolve. A resolve to struggle for equality. 100 years have gone, but the struggle continues.

G Mamatha/People's Democracy 

Wednesday, February 24, 2010

Mamata's Rail Budget 2010: Gimmicks Galore

The Railway Budget presented by Mamata Banerjee in Parliament today (February 24) exposes a sharp deterioration in the performance of the Indian Railways.

Far from containing any vision for the future of the Indian Railways, Mamata's Budget speech sought to conceal gross failures through misleading announcements and gimmicks aimed at next year's Assembly elections in West Bengal.

Over 120 railway accidents have taken place so far during this financial year. In this backdrop it is inexplicable how the allocations for the Railway Safety Fund has been cut by Rs. 579 crore from last year.

Moreover, Mamata has strangely tried to shift the blame for railway accidents on to rail rokos and natural disasters! This shows the Minister’s distorted perspective on the crucial aspect of railway safety.

According to the Railway Ministry’s own estimates, over 1.7 lakhs Railway posts were lying vacant in 2009, out of which nearly 90,000 were posts related to railway safety. Mamata has kept completely silent on filling up these vacancies, which can provide job opportunities to unemployed youth.

The Railway’s operating ratio (the ratio of total working expenses to the earnings – a higher ratio implies deterioration), which was 90.5% in 2008-09 has risen to 94.7% in 2009-10. Such a sharp deterioration in just one year reflects the gross mismanagement of Railway affairs by Mamata who has spent more time in Kolkata plotting against the Left Front government in cahoots with the Maoists than in Rail Bhawan in New Delhi.

Gross Traffic Receipts in 2009-10 have fallen short of the budgeted estimate by Rs. 63 crore. Moreover, plan investment in Railways also fell short of the budgeted target of 2009-10 by Rs. 497 crore.

This clearly shows that Mamata Banerjee has not been able to implement the tall promises she made in the last Budget. In this context the grandiose announcements of projects ranging from hospitals and diagnostic centres, sports academies and musuems ring a trifle hollow.

By Mamata's own admission, many of her project announcements were made without the sanction of the Planning Commission. Their implementation therefore is highly suspect. This is further borne out by the fact that for 2010-11, plan investment in Railways is budgeted to increase by only Rs. 1142 crore, which amounts to a drastic fall in plan investment in real terms.

While the Railway Minister has made tall claims on laying 1000 km of new railway lines, it is shocking that the actual plan allocations for gauge conversion, doubling of railway lines and new rolling stock like wagons and carriages have been cut in nominal terms.

This squeeze in public investment in the Railways is accompanied by an unprecedented thrust towards privatisation in all areas in the name of PPP: from modernisation of railway stations, new railway lines, freight and passenger corridors, locomotive, wagon and container manufacturing, rail axle factory, parking complexes and bottling plants.

This wholesale privatisation programme for the Railways and thus opening up the entire sector for private profiteering will be inimical to the national interest. It appears as if the entire decision-making in the Railway Ministry has been handed over to the corporate sector.

But then, given Manmohan Singh's privatisation agenda, Mamata Banerjee's Budget is of a piece.

Sunday, January 17, 2010

Jyoti Basu: The Last Titan

Jyoti Basu became a Communist while studying law in Britain. He came in contact with the British Communist party. He joined the Communist Party of India on his return in 1940.

He began working in the railway trade union movement and became an important functionary of the B.A. Railroad Workers Union and the All India Railwaymen's Federation. In 1946,he was elected to the Bengal legislative assembly from a railway constituency.

He was the Secretary of the provincial committee of the CPI from 1953 to 1961. He became a member of the Central Committee of the CPI in 1951. When the CPI (M) was formed he became one of the founder Polit Bureau and Central Committee members, positions he continued in, till his death. He played a significant role in developing the CPI (M) in West Bengal along with Promode Dasgupta.

Jyoti Basu made his mark as the leader of the opposition in the assembly between 1957 and l967. He was twice Deputy Chief Minister in the United Front governments between 1967 and 1970. His role in the government in supporting the struggle for implementation of land reforms and in not allowing the police to be used against workers and peasants' struggles was notable.

Jyoti Basu belonged to the leadership of the CPI M) which steered the Party through the difficult days of semi-fascist terror in West Bengal in the early seventies. After the sweeping victory of the Left Front in 1977, Jyoti Basu became the Chief Minister of the Left Front government, a position he held continuously for more than 23 years, a record in the country.

Under his leadership, the Left Front government embarked on land reforms on a scale unprecedented in the country; it instituted a panchayati raj system which was radical for its times, which gave the poor peasants and small farmers a say in running the panchayati institutions.

West Bengal became an oasis of communal harmony and secular values under his leadership. One has to recall how as Chief Minister he dealt with the situation after the assassination of Indira Gandhi in 1984 when violence against Sikhs broke out in various parts of the country, but nothing was allowed to happen in West Bengal. Similarly he dealt firmly with efforts to instigate trouble after the demolition of the Babri Masjid in 1992.

Jyoti Basu became a symbol for the Left, democratic and secular forces in the country. In West Bengal, the people adored him and respected him for his championing of their cause. He became the role model for all Communists and progressives on how to work in parliamentary institutions and serve the people. During this seven decades of work in the Communist party, he spent three and a half years in prison and two years underground.

Jyoti Basu as Chief Minister and as a Left leader played an important role in pushing for restructuring Centre-State relations and rallying other Chief Ministers and political leaders for the cause.

He played a prominent role in bringing together Left and secular parties against the Congress government in the nineteen eighties and later against the BJP in the nineties.

Jyoti Basu was a Marxist who never wavered in his convictions. After the fall of the Soviet Union and the setbacks to socialism, he provided the leadership along with his colleagues in the Polit Bureau to make a reappraisal of the experience of building socialism and to pinpoint the errors and to correct wrong notions and understandings while remaining true to Marxism-Leninism.

He was a Marxist who was not dogmatic and continued to learn from his vast experience in charting out the course for the Party.

He emerged as the pre-eminent and most popular leader of the Party, but he always worked as a disciplined member of the Party, setting an example for all. In his long career in the Party, he undertook various responsibilities including being the first editor of People's Democracy.

He had a lifelong association with the trade union movement and was the Vice-President of the Centre of Indian Trade Unions since its inception in 1970.

He stepped down from the Chief Ministership in 2000 due to ill health and advanced age. But he continued to work and discharge responsibilities till the end of his life. He became the source of
inspiration and a fount of advice for the Party and the Left movement in the country. Irrespective of political affiliation, across the political spectrum, he was respected by all and accepted as a national leader.

The Left movement in the country was fortunate in having such an accomplished and dedicated leader at the helm of affairs in West Bengal and in the leadership of the CPI (M) for such a long time. His precious legacy is there for all of us to cherish and nurture.

Lal Salaam to a great Communist!

Friday, November 20, 2009

Climate Change: Privatising The Atmosphere

Market solutions in the form of emissions trading do the opposite of the environmental principle that the polluter should pay. Through emissions, trading private polluters are getting more rights and more control over the atmosphere which rightfully belongs to all life on the planet. Indeed, emissions trading “solutions” actually pay the polluter, argues Vandana Shiva

The Unite Nations climate change conference at Copenhagen next month is meant to further the goals of a global environmental treaty — the United Nations Framework Convention on Climate Change (UNFCCC). In 1988, a resolution of the UN General Assembly considered the climate change matter as a “common concern for mankind”, and the Inter-governmental Panel on Climate Change was created. On May 9, 1992, the UNFCCC was adopted in New York and opened for signing in June 1992 at the Earth Summit in Rio. It came into effect on March 21, 1994.

The goal of the Convention, according to Article 2, is to “stabilise the concentrations of greenhouse gases in the atmosphere at a level that prevents all dangerous anthropogenic disturbance of the climate system”. Since the historic polluters were the rich, industrialised countries, the Convention required that by 2000 they stabilise their greenhouse gas emissions at their 1990 level.

Under the Convention, the Kyoto Protocol was adopted in Kyoto on December 11, 1997. The Kyoto Protocol set binding targets on industrialised countries for reducing their greenhouse gas emissions to an average of five per cent against the 1990 levels over a five year period, 2008 to 2012.

However, in 2007, America’s greenhouse gas levels were 16 per cent higher than their 1990 levels. The much-announced Waxman Markey “American Clean Energy and Security Act” commits the US to 17 per cent emissions reduction below 2005 levels by 2020. However, this is a mere four per cent below their 1990 levels.

Further, the emissions trading or offsets, in fact, are a mechanism to not reduce emissions at all. As the Breakthrough Institute in United States, “a small think tank with big ideas”, states “If fully utilised, the emissions ‘offset’ in the American Clean Energy and Security Act would allow continued business as usual growth in the US greenhouse gas emissions until 2030, leading one to wonder: where’s the ‘cap’ in the ‘cap and trade’.”

The Kyoto Protocol allows industrialised countries to trade their allocation of carbon emissions among themselves (Article 17). It also allows an investor in an industrialised country (industry or government) to invest in an eligible carbon mitigation project in a developing country and be credited with Certified Emission Reduction Units that can be used by investors to meet their obligation to reduce greenhouse gas emissions. This is referred to as the Clean Development Mechanism under Article 12 of the Kyoto Protocol.

The Kyoto Protocol gave 38 industrialised countries, that were the worst historical polluters, emissions rights. The European Union Emissions Trading Scheme rewarded 11,428 industrial installations with carbon dioxide emissions rights.

Through emissions trading, Larry Lohmann, the co-author of Carbon Trading: A Critical Conversation on Climate Change, Privatisation and Power, observes, “Rights to the earth’s carbon cycling capacity are gravitating into the hands of those who have the most power to appropriate them and the most financial interest to do so.”

That such schemes are more about privatising the atmosphere than preventing climate change is made clear by the fact that emissions rights given away in the Kyoto Protocol were several times higher than the levels needed to prevent a two-degree-Celsius rise in global temperatures.

Just as patents generate super profits for pharmaceutical and seed corporations, emissions rights generate super profits for polluters. The Emissions Trading Scheme granted allowances of 10 per cent more than 2005 emission levels; this translated to 150 million tonnes of surplus carbon credits which, with the 2005 average price of $7.23 per ton, translates to over $1 billion of free money.

The UK’s allocations for the British industry added up to 736 million tonnes of carbon dioxide over three years, which implied no reduction commitments. Since no restrictions are being put on northern industrial polluters, they will continue to pollute and there will be no reduction in CO2 emissions.

Market solutions in the form of emissions trading are thus doing the opposite of the environmental principle that the polluter should pay. Through emissions, trading private polluters are getting more rights and more control over the atmosphere which rightfully belongs to all life on the planet. Emissions trading “solutions” pay the polluter.

Carbon trading is based on inequality because it privatised the commons. It is also based on inequality because it uses the resources of poorer people and poorer regions as “offsets”. It is considered to be 50 to 200 times cheaper to plant trees in poorer countries to absorb CO2 than reducing it at source. The Stern Review states, “Emissions trading schemes can deliver least cost emissions reductions by allowing reductions to occur wherever they are cheapest.”

In other words, the burden of “clean up” falls on the poor. In a market calculus, this might appear efficient. In an ecological calculus, it would be far more effective to reduce emissions at source. And in an energy justice perspective, it is perverse to burden the poor twice — first with the externality of impacts of CO2 pollution in the form of climate disasters and then with the burden of remediating the pollution of the rich and powerful.

It is because of this failure of the rich countries to cut back on emissions that the global climate negotiations are not moving forward. When secretary of state Hillary Clinton visited India in April 2009 and tried to apply pressure on India to cut back on emissions, Indian environment minister Jairam Ramesh responded: “Even with eight-nine per cent GDP annual growth for the next decade or two, our per capita emissions will be well below developed country averages. There is simply no case for the pressure we face to reduce emissions.”

When Clinton stated that the per capital argument “loses force as developing countries rapidly become the biggest emitters”, Mr Ramesh replied that India’s position on per capita emissions is “not a debating strategy” because it is enshrined in international agreements. “We look upon you suspiciously because you have not fulfilled what developed countries pledged to fulfilled”, he said candidly. The failure of the rich countries to fulfil their climate obligations has created a “crisis of credibility”.

The US is leading the dismantling of the UNFCCC. At the Bangkok negotiations, the lead negotiator of the US said: “We are not going to be part of an agreement that we cannot meet. We say a new agreement has to be signed by all countries. We cannot be stuck with an agreement that is 20 years old. We want action from all countries.”

The proposal of the US is to get out of the legally-binding UNFCC, to set targets nationally which could be noted down in a new international agreement, without it being legally binding internationally and without a people compliance mechanism.

Copenhagen is supposed to evolve new commitments for Annexure I countries for the post-Kyoto period. The science of climate change tells us the five per cent reduction commitments of Kyoto are too small, 80 to 90 per cent reduction is needed to keep air pollution at 350ppm and temperature increase within 2°C to avoid catastrophic climate change. Instead of taking on their legally-binding commitments and deepening cuts, the rich countries want to abandon UNFCCC and the Kyoto Protocol.

The press release of October 9, 2009, from the G-77 and China categorically stated: “This is simply unacceptable. It would betray the trust of the world public that is demanding a major step forward and not a major step backwards, in developed countries commitments and actions. We will also consider the Copenhagen COP meeting to be a disastrous failure if there is no outcome for the commitments period of the Kyoto Protocol”.

The UNFCCC is the only international agreement we have in the context of climate change. The challenge at Copenhagen is to prevent its dismantling. The global environmental movement needs to throw its weight behind the countries of the South who are trying their best to uphold the climate treaty.

Courtesy: The Asian Age

Wednesday, November 18, 2009

Climate Change: Copenhagen Meet Will Be Nothing More Than A Talk Shop

As with everything else, Barack Obama’s policy on climate change differs little from that of his predecessor George W Bush

In the course of his current trip to Asia, US President Barack Obama has ensured that the upcoming United Nations Climate Conference, due to take place in Copenhagen December 7-18, will be nothing more than a talk shop.

An estimated 40 world leaders and representatives of 190 nations are due to take part in the Copenhagen conference, which has the task of producing a new agenda for tackling global warming to replace the Kyoto Protocol of 1997.

On November 15, Obama gave his consent to a plan worked out at the Asia Pacific Economic Cooperation (APEC) summit in Singapore that delays any binding agreements on climate change until next year at the earliest. The deal was supported by many of the world’s leading greenhouse gas emitters, including the United States, China, Russia, Japan, Indonesia and South Korea.

According to figures published by the International Energy Agency, China was the leading emitter of carbon dioxide in 2007, closely followed by the US. When it comes to carbon dioxide emission per head of the population, however, the US is far ahead of any other country, with 19.1 tons, dwarfing China’s 4.6 tons.

As was the case with the Kyoto Protocol—which expires in 2012 and was never ratified by the American government—the US is playing the main role in undermining any binding agreement to curb greenhouse gas emissions. Obama has adopted the Bush administration’s policy of demanding that China accept binding targets before the US takes any measures.

The hypocrisy of Obama when it comes to the issue of climate change is brazen. In September, Obama addressed a United Nations conference, proclaiming “the historic recognition on behalf of the American people and their government [that] we understand the gravity of the climate threat.” Aside from a change in rhetoric, however, Obama’s policy differs little from that of his predecessor, on climate change as with everything else.

After his talks with Chinese President Hu Jintao, Obama declared that the United States and China were seeking a deal at the Copenhagen summit that would “rally the world.” The agreement struck in Copenhagen should have “immediate operational effect,” he added.

In fact, just one day previously Obama had struck a deal with the Chinese president at the APEC meeting that robs the Copenhagen summit of any substance. This is how the US administration seeks to “rally the world.” Obama has still not confirmed whether he will attend the conference in Copenhagen.

While leading industrial nations pointedly refuse to undertake measures to tackle climate change, environmental experts and scientists are warning of the grave consequences of a failure to curb greenhouse emissions.

At an international climate change conference held in Oxford, England at the end of September, the German climatologist, Stefan Rahmstorf, declared that a one-meter rise in sea levels was likely this century. If world governments do not arrive at effective agreements to halt global warming, the rise in sea levels will be even more dramatic.

A sea level change of just one meter will have an enormously disruptive impact on a large portion of the world’s population that resides in coastal areas. Low-lying coasts and islands will be submerged, dispossessing tens of millions of people. A two-metre sea rise will flood or submerge entire cities.

Rising temperatures and the associated disruption of weather patterns will have devastating consequences for agricultural production, water distribution and disease management worldwide. As always, the poor will feel the effects most acutely.
The inability of the major capitalist powers to agree to any effective countermeasures is rooted in two factors, both inherent in the capitalist system.

First, though climate change is a global problem that requires a global solution, international cooperation is prevented by the conflicting interests of different nation-states. These conflicts have been intensified by the economic crisis.

Despite the efforts by Obama to put a positive gloss on his talks this week with President Hu, the differences between the two countries are considerable and continue to mount. China is Washington’s leading creditor, as America’s budget deficit soars to a record $1.42 trillion.

The US and Chinese administrations accuse one another of maintaining cheap currencies to further their interests, and both countries are involved in tit-for-tat punitive trade sanctions.

Similar rivalries are growing between other leading world economies. Every major power fears that any concession with regard to environmental protection could disadvantage its domestic business interests in the furious struggle for the domination of world markets.

Second, a rational, scientific response to climate change is blocked by the subordination of every aspect of economic and social life to the principle of private profit and the interests of the corporate and financial elite.

In a report dealing with the issue of developing vitally needed renewable non-toxic energy sources, the UN estimated that governments worldwide would need to invest $500-600 billion per year. While this sum is large, it is still a fraction of the funds made available by the US government to bail out its banks (as much as $23 trillion by one account). Across the globe, capitalist governments, following the lead of the US, have made clear that their priority is profit returns for big business and the banks, not a healthy planet.

The option favoured by Obama himself is a free market approach to global warming, involving “cap and trade” measures, whereby the government would provide huge incentives to corporations to modestly reduce carbon emissions, while turning pollution into a tradeable commodity.

The failure of major capitalist nations to undertake any serious measures to combat growing environmental dangers is an indictment of the capitalist system. It is also a blow to all those environmentalists and “Greens” who argue that it is possible to pressure capitalist governments to undertake “environmentally friendly” policies.

Climate change and other pressing environmental problems can be solved only through the utilisation of mankind’s intellectual, productive and financial resources as part of a rationally organised, democratic effort carried out on an international scale. This requires the socialist reorganisation of society.

Stefan Steinberg

Saturday, November 14, 2009

Manmohan Singh In Bottom Half Of 'Most Powerful' List; Pips Osama bin Laden To Claim #36 Spot

IT'S OFFICIAL. Manmohan Singh is indeed the weakest prime minister India has ever had.

No, I've not crossed over to the BJP. My information comes from a source much valued by the Prime Minister himself – the business magazine Forbes.

Forbes' first ever list of the World's Most Powerful People has only 67 slots - one for every 100 million people on the planet. And Manmohan Singh, at #36, is in the bottom half of the list. (In the NAM era, the Indian Prime Minister was ALWAYS at the top of the heap.)

Indeed, he ranks way below sundry central bankers, software developers, investment bankers, CEOs of Wal-Mart, GE, Berkshire, ExxonMobil and Toyota, Wall Street brokers, a football club owner, a telecom mogul, Rupert Murdoch, the mayor of New York, and even the propaganda chief of the Communist Party of China!

Saving India the blushes, Manmohan Singh has fortunately managed to beat Osama bin Laden, who's just one step behind him, by a whisker. (Imagine the fun if the rankings were the other way round!) Indeed, it's a telling comment from the oracles at Forbes that Pakistan Prime Minister Yousaf Raza Gilani and Tenzin Gyato, aka the Dalai Lama, are snapping at Bin Laden's heels at numbers 38 and 39.

And, hey, at #50, Dawood Ibrahim, described as the CEO of D-Company Inc. (you have to be a CEO in ANY Forbes' List) hasn't done too badly either. In fact, he's ahead of Laxmi Mittal AND Ratan Tata!

Nevertheless, along with Mukesh Ambani, Laxmi Mittal and Ratan Tata, South Asia has done reasonably well. So what if the “most powerful” are actually feeding on crumbs.

The criterion for selection, according to the oracles at Forbes was quite straightforward.

“First, we asked, does the person have influence over lots of other people?... Then we assessed the financial resources controlled by these individuals. Are they relatively large compared with their peers? For heads of state we used GDP, while for CEOs, we looked at a composite ranking of market capitalization, profits, assets and revenues...Next we determined if they are powerful in multiple spheres... Lastly, we insisted that our choices actively use their power...

There are only 67 slots on our list - one for every 100 million people on the planet - so being powerful in just one area is not enough to guarantee a spot. Our picks project their influence in myriad ways...

To calculate the final rankings, five Forbes senior editors ranked all of our candidates in each of these four dimensions of power. Those individual rankings were averaged into a composite score, which determined who placed above (or below) whom...”

Well, the oracles have spoken. And here's why these worthies from South Asia made it to the coveted List.

#36 Manmohan Singh: Has nuclear arsenal at disposal.

#37 Osama bin Laden: Casus belli of two US-lead wars costing over $1 trillion.

#38 Syed Yousaf Raza Gilani: (Though) less powerful than bin Laden - can't find him in his own country - still has keys to Pakistan's nuclear arsenal.

#39 Tenzin Gyatso aka Dalai Lama: Tibetan exile keeps China honest.

#44 Mukesh Ambani: Busy building world's first $1 billion home.

#50 Dawood Ibrahim Kaskar: As boss of Mumbai-based organized crime syndicate D-Company, reputedly oversees international drug trafficking, counterfeiting, weapons smuggling.

#55 Laxmi Mittal: Romance with former UK Prime Minister Tony Blair exposed in 2002 'Garbagegate', when Mittal reportedly sought Blair's help in cash-for-influence bid for Romanian state steel mills.

#59 Ratan Tata: Calls Nano "The People's Car"; in nation of a billion, environmentalists call it eco-disaster.

Then there's an India List (total 7, i.e. one for every 150 million) compiled by Forbes India editor Indrajit Gupta listing the Most Powerful Indians. Sorry, No 'Paa', SRK, Tendulkar, Katz, Mayawati, Advani, Pawar etc.

Here are the 'Magnificent Seven' and why they matter

#1 Sonia Gandhi: The most powerful Indian is an enigmatic woman of Italian origin. Her command over the Congress, India's ruling party, is total.

#2 Manmohan Singh: Indians trust (him) to do the right thing - whether it's economic reforms or the trade-off between development and social equity.

# 3 Nandan Nilekani: UID has fired the public imagination and drawn volunteers from all walks of life.

#4 Ratan Tata: Is India Inc's best brand ambassador.

#5 Sri Sri Ravi Shankar: Offers (Art of Living) practitioners a tool to deal with urban angst.

#6 KG Balakrishnan: (The Chief Justice) ruled political parties cannot call for strikes that disrupt public life.

#7 Aamir Khan: (Surprise, surprise) As an actor and a filmmaker (he) has consistently demonstrated it is possible to break new ground in a business driven by clichés.

The Complete List

Barack Obama
Hu Jintao
Vladimir Putin
Ben S. Bernanke
Sergey Brin and Larry Page
Carlos Slim Helu
Rupert Murdoch
Michael T. Duke
Abdullah bin Abdul Aziz al Saud
William Gates III
Pope Benedict XVI
Silvio Berlusconi
Jeffrey R. Immelt
Warren Buffett
Angela Merkel
Laurence D. Fink
Hillary Clinton
Lloyd C. Blankfein
Li Changchun
Michael Bloomberg
Timothy Geithner
Rex W. Tillerson
Li Ka-shing
Kim Jong Il
Jean-Claude Trichet
Masaaki Shirakawa
Sheikh Ahmed bin Zayed al Nahyan
Akio Toyoda
Gordon Brown
James S. Dimon
Bill Clinton
William H. Gross
Luiz Inacio Lula da Silva
Lou Jiwei
Yukio Hatoyama
Manmohan Singh
Osama bin Laden
Syed Yousaf Raza Gilani
Tenzin Gyatso
Ali Hoseini-Khamenei
Joaquin Guzman
Igor Sechin
Dmitry Medvedev
Mukesh Ambani
Oprah Winfrey
Benjamin Netanyahu
Dominique Strauss-Kahn
Zhou Xiaochuan
John Roberts Jr.
Dawood Ibrahim Kaskar
William Keller
Bernard Arnault
Joseph S. Blatter
Wadah Khanfar
Lakshmi Mittal
Nicolas Sarkozy
Steve Jobs
Fujio Mitarai
Ratan Tata
Jacques Rogge
Li Rongrong
Blairo Maggi
Robert B. Zoellick
Antonio Guterres
Mark John Thompson
Klaus Schwab
Hugo Chavez
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