Current Affairs - Sept 2014

CHRONICLE
IAS ACADEMY
A CIVIL SERVICES CHRONICLE INITIATIVE
MOMENTUM
Weekly Current Affairs Bulletin
8TH SEPT, 2014 TO 14TH SEPT, 2014
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CONTENTS
TOPICS
Pg. No.
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National ...................................................................................................................... 4-10

International ............................................................................................................ 11-11
India and the World .............................................................................................. 12-13
Economy ................................................................................................................... 14-17
Science & Technology .......................................................................................... 18-20
Health ........................................................................................................................ 20-20
Editorial......
The children the PM couldnt speak to ---------------------------------------------------- 26

This parrot cant be set free ------------------------------------------------------------------- 27
Insurance can be bad for health ------------------------------------------------------------- 28
Catalyse, dont control ------------------------------------------------------------------------- 30
Where monetary policy is irrelevant ------------------------------------------------------- 31
Making trade-offs ------------------------------------------------------------------------------- 33
Degradation and denial------------------------------------------------------------------------ 33
If they split ---------------------------------------------------------------------------------------- 34
Germanys great green gamble -------------------------------------------------------------- 35
Clearance without compliance --------------------------------------------------------------- 36
A red herring for judicial independence -------------------------------------------------- 38
Israel, a gift of the arabs ----------------------------------------------------------------------- 40
Neither victims nor perpetrators ------------------------------------------------------------ 41
Heed the border warning bells -------------------------------------------------------------- 41
Rewriting GDP: The natural way ----------------------------------------------------------- 43
[2]
Weekly Current Affairs 8th Sept. to 14th Sept., 2014
A new engagement ----------------------------------------------------------------------------- 44

Stop skirting fertilizer reform ---------------------------------------------------------------- 45
Is corporate tax high in India? --------------------------------------------------------------- 46
Judges as governors ---------------------------------------------------------------------------- 47
The business of climate change -------------------------------------------------------------- 48
Every drop of treated water counts --------------------------------------------------------- 49
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Growth and investment: The interlinks --------------------------------------------------- 50
[3]
NATIONAL
LOKPAL SEARCH PANEL TO GET MORE FREEDOM
The government has notified new rules to do
away with the restriction that mandated the panel
to suggest people from a list provided by the
Department of Personnel & Training. All this has
been done in a bid to give the Lokpal Search
Committee more freedom in recommending names
for Chairperson and members to the anti-corruption
watchdog.
The words from amongst the list of persons

provided by the central government in the
Department of Personnel and Training shall
be omitted.
The change in the rules is now expected to pave

the way for the government to go ahead with the
process of appointing the chairperson and members
of the Lokpal. The rules framed by the former
government had mandated the search committee to
form a panel, which would be considered by a Prime
Minister-led selection committee for appointment
as the chairperson and members of the watchdog
from amongst the list of persons given by DoPT.
The government has also reduced the

composition of the search committee to seven
members from eight.
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of short-listing of persons, adopt such norms

as it may consider appropriate.
The new rules include:
According to the new rules, the Centre would

provide assistance if required by the search
committee in efficient discharge of its
functions in accordance with the provisions
of the Act.
The panel would now consist of at least seven

persons of standing and having special knowledge
in anti-corruption, public administration and
vigilance among others.
The search committee may, for the purpose
GREEN MANTRA FOR A NEW ENVIRONMENTAL REGIME
The new government has prepared to usher in

a new environmental regime in the country which
seems to be two-pronged. One is to make it easier
for industries to set up new facilities but difficult
for them to pollute. As one decision is unveiled
after another, it is becoming increasingly clear that
the government is working on a two-pronged
strategy to change the existing norms of
environmental governance. It is willing to relax
norms, ease restrictions and even amend laws to
ensure that environmental procedures do not
become a hindrance to greater and faster
industrialization.
At the same time, it is giving indications that
industries will have to submit to higher level of
environmental integrity and strictly comply with
pollution standards. This may be radically different

from the existing regiment in which clearances of
industrial projects are marked by uncertainty,
arbitrariness and even allegations of rent-seeking.
Once the clearance is obtained, there is little followup, oversight or monitoring to check whether these
industries are adhering to prescribed environmental
standards.
As an environmental reform measure, the Centre
has lifted green moratorium for new industries in
Haldia, Asansol. The Centre has ordered ban on new
industries, expansion in three industrial estates,
Green clearance within 15 days of advisory panels
approval. The new two-pronged approach is likely
to satisfy the industry but it has not impressed
environment campaigners.
PMO & SAI CLEAR NAMES FOR ASIAD

The names of the Indian contingent for the 2014
Asian Games, has been cleared by the Union
[4]
government. The athletes participation in the event

is to be held in Incheon, South Korea, from September
19 to October 4. The Prime Minister Office in

consultation with the Sports Ministry and the Sports
Authority of India (SAI) has approved 679 names
516 athletes and 163 coaches and support staff. The
figure is much less than the one sent by the Indian
Olympic Association (IOA) to SAI. The original list
had a total of 942 names that included 662 athletes
and 280 officials.
The government has decided not to allow

anybody in no cost to government category for
major multi-sports events. Starting with the Incheon
touring party, the government has decided not to
sanction individuals or teams at no cost to
government for major sporting events. Earlier,
individuals and teams could participate in major
events by taking advantage of the no cost to
government policy, in which the participants or their
respective federations would bear the expenses for
participation in the event even if they failed to make
the national squad.
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The PMO added the disciplines of football (both

men & women), handball (men & women) and
womens volleyball to the list. These disciplines had
been initially struck off by SAI as their standards
were below the marker set for selection sixth place
for individual events as per the last Asian Games
standards and eighth place in team events. Among
the disciplines that failed to get the green light are
rugby, modern pentathlon, softball, soft tennis,
triathlon, bowling, baseball and fencing. Prominent

names that have been axed from the original list
include pistol shooter Heena Sidus husband Ronak
Pandit and Jaspal Ranas father NS Rana.
BASTAR TO GET NATIONAL TRIBAL UNIVERSITY
In order to facilitate research and development

of tribal culture and dialects, the Centre has given
its nod for setting up a National Tribal University
in Chhattisgarhs insurgency-hit Bastar region. The
consent was given to commence the functioning of
the university from the next academic session. The
announcement for the National Tribal University in
Bastar, which is mired into illiteracy and poverty
for generations, has been welcomed by educationists
and intellectuals of Chhattisgarh mainly of tribaldominated Bastar region, which is made up of seven
districts.
It is expected that the university will greatly

benefit the people of tribal-dominated Bastar and
help in the preservation of culture, traditional and
natural resources, besides from the education point
of view. The institution is also expected to help in
study and research of the regions varied biodiversity. The Centre has also agreed to provide
UGCs one time catch up grant for providing
monetary help for development of three newly
opened universities in Bastar, Sarguja and Bilaspur
following a demand made by the state in this regard.
Several proposals related to school and higher
education in the state were also approved.
GOVT RAISES OBJECTION IN EMPOWERING THIRD GENDER
Over its stand on the LGBT community, the

government has moved the Supreme Court, raising
several objections against the judgment that granted
constitutional recognition to transgenders as a third
gender and gave them the right to have a family.
resisted the direction to classify all transgenders as

OBCs in a suo moto exercise. It said that they could
be granted OBC status and consequent benefits only
if the National Commission for Backward Classes
(NCBC) decides so.
The judgment had directed the government to

treat transgenders as a socially and educationally
backward class, entitled to quotas like OBCs in
educational institutions and for public appointments.
It held that transgenders, as a distinct third gender
category, will have all rights under the law,
including the right to marry each other, adopt,
divorce, succession, inheritance and also to claim
benefits under welfare programmes such as
MGNREGA.
Another serious objection flagged by the

government pertains to the judgment underscoring
that the term transgender can be construed in wider
sense to connote the entire Lesbian, Gay, Bisexual
and Transgender (LGBT) community.
The governments application, settled by

Attorney General Mukul Rohatgi, however, has
The Centre has refused to accept such a wide

definition of transgender and sought a declaration
that lesbian, gay and bisexual would be kept out of
this class. Pointing out a distinction between the
sexual orientation of a person and a sense of gender
identity, the plea said that the ambiguity created
by the judgment required a clarification.
[5]
The Government has asked the court to issue

appropriate orders, which means that the authorities
would not be obligated to provide benefits of the
social welfare and intensive health care programmes
that the SC had directed to be granted to the entire
LGBT community. The government also said that
the term eunuch is not an equivalent of
transgender or a variant of the latter and hence it
has to be left out.
Bihar cabinet has given nod to recognise

eunuchs and transgenders as the third gender in
view of the landmark Supreme Court judgment in
this connection in April this year. The apex court
had ordered the Centre and the States to recognise
transgenders as a class apart from male and female.
While eunuchs, even those coming from upper
castes, will be treated as OBC annexure II
(popularly called Extremely Backward Classes or
Most Backward Classes) and get reservation
benefits. According to the legal recognition as the
third gender, the Supreme Court had ruled that
transgenders will be treated as a socially and
economically backward class for being given
various special rights.
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The government has also proposed a clear-cut

definition of transgender, pleading for an approval.
The definition, as proposed, defines transgender as:
All persons whose own sense of gender does not
match with the gender assigned to them at birth.
They will include trans-men and trans-women and
a number of socio-cultural identities, such as kinnars,
hijras, aravanis, jogtas, etc.
Bihar cabinet recognizes the third gender
SUPREME COURT CLEARS 3% QUOTAS FOR DISABLED
In order to empower the differently-abled, the

Supreme Court has held three per cent reservation for
them to be given in all categories of government jobs,
including in appointments and promotions to IAS. It
also pulled up the Centre for frustrating the very
purpose of empowering legislation by opposing it.
quota for differently-abled people. The bench

expressed its displeasure at the government seeking
to adopt a hyper-technical approach, as its counsel
pressed that three per cent reservation could be given
only at the stage of appointment but not for
promotion.
As per the bench headed by Chief Justice R M

Lodha, the disabled persons have not got their due in
the last 19 years after framing of the Persons with
Disabilities (Equal Opportunities, Protection of Rights
and Full Participation) Act, which was passed in 1995.
The court dismissed the petition of Centre challenging
order of Bombay High Court which had directed the
Centre and the Union Public Service Commission to
implement a 3 per cent quota in direct recruitments
and promotions for the disabled in the IAS.
According to the Additional Solicitor General

Pinky Anand, the reservation at the stage of
promotion may lead to huge resentment, especially
among employees in Group A and Group B
categories, since many beneficiaries may get ahead
of their seniors. The bench, however, told the
Additional Solicitor General that the objective of the
reservation policy, as envisaged by Parliament, was
unequivocal that the differently-abled people must
get the benefits without technical impediments.
Giving a level-playing field to more than four

crore people with disabilities in India, the apex court
held that the Centre, States and Union Territories
were obligated to implement the rules of reservation
for this class in the matters of appointment, selection,
direct recruitment, deputation and also for
promotions. The bench reiterated its earlier verdict
that the principle of not exceeding 50 per cent
reservation would not be applicable while granting
The three per cent reservation, as clarified by

the apex court in its last years judgment, is to the
extent of one per cent each for the blind, hearing
and speech impaired, and persons suffering from
locomotor disability or cerebral palsy. The Supreme
Court had in October last ruled in favour of a
minimum three per cent reservation for them in all
central and state government jobs.
[6]
NATIONAL ROAD TRANSPORT AUTHORITY

Other highlights are Punishment for offences relating to
manufacturing of faulty vehicles: Automaker may
be slapped with a Rs 5,00,000 fine per vehicle, or
imprisonment for a term of 3 months, or both. The
fine may differ on basis of the size of the vehicle.
Driving under the influence of alcohol or
drugs : Rs 15,000 fine, or imprisonment for a term of
6 months, which may be extendable to 12 months,
or both, and a 6-month license suspension from the
date of conviction, or the date of sentencing or
release.
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India has been grappling to reduce the fatality

rate on its roads which at 1.4 lakh deaths every year
is among the highest in the world. In order to bring
reforms to the Road Transport and Safety Act 2014,
and to bring down the sharp rise in road accidents
and fatalities in the country, the government has
proposed a transport authority (Motor Vehicle
Regulation & Road Safety Authority of India),
unified information systems, safety programmes and
steep fines among other things.
The draft aims at providing a scientifically

planned and evolving framework for safer, faster
and cost effective movement of passengers and
freight in India.
Finer points of the Draft:
According to the draft, in first five years of its

implementation, 200,000 lives can be saved due
lesser road accident deaths, a four percent
improvement in GDP can be achieved on
account of increased efficiency and safety of
road sector, and 10 lakh jobs can be created
with increased investments.
The draft proposes also proposes setting up
an independent national authority, known as
the Vehicle Regulation and Road Safety
Authority of India, in six months time.
Driving an uninsured vehicle Two-wheelers :

Rs 10,000 fine, Light Motor Vehicle & Threewheelers Rs 25,000 fine, other categories of motor
vehicles: Rs.75,000 fine.
Violation of traffic signals: 1st offence Rs 5,000
fine; 2nd offence - Rs 10,000 fine; and 3rd offence Rs. 15,000 fine, 1 month, license suspension, and
compulsory refresher training.
Causing death : Rs. 100,000 fine, and
imprisonment for a term of not less than 4 years.
Causing death of a child: Rs 300,000 fine, and

imprisonment for a term not less than 7 years
While this agency will be accountable to the

Parliament, it will promote innovation and
new technology adoption, devise innovative
financing mechanisms to fund safety
programmes and provide lead time for the
industry to adopt new standards.
The new draft also proposes that the National

Authority would create, share and maintain a
unified information system for the entire
country that will serve as a holistic record of
all the issued driving licenses, motor vehicle
registrations, insurance, vehicle data from
manufacturers, permits, road accidents,
offences and penalties.
PACT ON GREEN BUILDING
To advance green building movement in the

country, Indian GBC organized the 12th edition of
India's flagship event on green buildings, Green
Building Congress 2014 on 4 - 6 September 2014 at
Hyderabad, India.
Indian Green Building Council (IGBC) and

Indian Society of Heating, Refrigerator and Air
Conditioning Engineers (ISHRAE) have inked a

memorandum of understanding to cooperate in the
green building movement. The MoU was signed at
the Green Building Congress, 2014. It seeks to have
cooperation in the areas of information exchange,
participation in events, joint programmes and
promotion of educational programmes.
[7]
The Indian Green Building Council has

announced three rating systems to cover schools,
metro rail projects and new buildings. The New
Building Rating System comes in the backdrop of
IGBC and US Green Building Council parting ways
on the Leed certification programme. A portal has
also been created to facilitate online interface on
A Green Building:
healthy and offer comfort to residents.

The concept of Green Building concentrates
mainly on two points:
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Any building that demands less energy, causes

less damage to environment, can conserve water or
was made using recycles or energy efficient material
should be considered as a green building. A green
building doesnt have to be a fancy concept. Any
construction can be converted into a green building
just by creating simple structures like rain water
harvesting pits, using landscape effectively along
with employing recycled materials. Green buildings
are energy efficient, resource saving, eco-friendly,
green building rating systems. India now has a

registered green building base of over 2.2 billion
sq.ft, which has been achieved in about 10 years.
Now, IGBC is aiming to have a registered base of 10
billion sq.ft by 2022, when India would be 75 years
after Independence.
Increasing the efficiency with which buildings

use energy, water and materials.
Reducing building impacts of human health
and the environment, through better site
selection, design, construction, operation,
maintenance, and removal throughout the
complete life cycle.
NOW ITS MANDATORY FOR SCIENTISTS TO TEACH IN SCHOOLS
It is soon going to be mandatory for scientists

from various research organizations to give formal
lectures at schools and colleges. The Centre has
decided to make it mandatory for scientists and
researchers of the Departments of Science and
Technology, Earth Sciences and the Council for
Scientific and Industrial Research to undertake 12
hours of lecture classes in schools and colleges in an
academic year.
A second scheme called KIRAN (Knowledge,

Involvement, Research, Advancement through
Nurturing) which will seek to bring gender parity
in the field of science and technology was also
announced. Under this scheme, the ministry will
create leadership positions for women and would
be useful for those who face inevitable breaks in
their careers due to various reasons. The scheme
would look at a mobility mechanism to help female
scientists who have to change residences due to
various compulsions.
According to the Minister of State (Independent
Charge) for Science and Technology, Earth Sciences,
scientists, who are mostly confined to their labs shall
share their talent and experience for free as part of
their duties, to inculcate in young students a
scientific temper and to bring Science and
Technology into a larger domain. For this,
departments, particularly publicly-funded national
[8]
institutes, will enter into an agreement with schools

and colleges. The Ministry of Human Resource
Development will collaborate with departments
concerned.
Scientists at all publicly-funded research
institutions have been told by the government that
it would be compulsory for them to teach at the
undergraduate-level or even at schools while
pursuing their research work. This extra work would
not entitle the scientists to any extra remuneration
or benefits.
According to the Ministry, this had been done
to ensure that the scientific community comes out
of the confines of their laboratories to serve the
society in a wider capacity. This would also address
the problem of shortage of good science teachers.
This teaching programme would be reviewed for its
implementation after the end of one year, and the
performance of the scheme would be evaluated after
three years. The scientific institutions have been
asked to design teaching programmes for their
researchers and get it ratified by their respective
governing bodies. Since the scientific community
does not always have enough opportunities to
interact with students in a structured manner, this
programme would let them get involved with
students at all levels.
2 CHILD NORM SKEWING SEX RATIO

policy was announced; the first year was a grace
period in all of the State laws. This decline was
relative to that States own history of decline in
fertility as well as other States which didnt enact
such laws.
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Sex ratio is an important demographic indicator

reflecting the socio-economic structure of any society.
The decreasing child sex ratio (0-6 years) has been
a concern in Indias demography in recent times as
this ratio has decreased markedly from 927 in 2001
to 914 in 2011 for the country as a whole. This decline
is more for rural areas from 934 in 2001 to 919 in
2011, and for urban areas it is 906 in 2001 and 902
in 2011.
It was clearly proved that higher female mortality
in different age groups was responsible for low sex
ratio. In present contex, with the avert of new
technology, the practice of female infanticide has
been replaced by genocide of millions of women
known as female foeticide, denying the girl its very
right to take birth.
Indias attempt at a China-type population

control policy appears to have had drastic but
unintended consequences. According to a new
research, laws enacted by State governments in the
late 1990s and 2000s restricting political eligibility
to candidates with two or less children did reduce
family sizes in those States, but severely affected
the sex ratio.
Over the period, 11 Indian States passed laws

disqualifying persons with more than two children
from contesting panchayat elections. Some States like
Bihar, Gujarat and Uttarakhand enacted such laws
later, while Himachal Pradesh, Madhya Pradesh and
Chhattisgarh repealed their laws after 2005.
Uttarakhand and Bihar implemented the law only
for municipal elections. Using data from various
rounds of National Family Health Survey (NFHS)
and District-Level Household Survey (DLHS), the
researchers found that there was a marked decline
in the number of women in the general population
reporting third births exactly one year after the new
STATE LEGISLATURE FREE TO ADD OFFICIAL LANGUAGE
A Constitution Bench headed by Chief Justice of

India R.M. Lodha passed the order on a petition by
U.P. Hindi Sahitya Sammelan against the 1989
amendment to the Uttar Pradesh Official Language
Act, 1951, which held that there is no bar against a
State Legislature declaring a language used in the
State as an official language for the convenience of
its citizens. This means that a widely-used language
in a State, once declared an official language by the
State Legislature, would find a place in official

communications, advertisements and even signposts.
The U.P. Legislature introduced Urdu as the
second official language of the State, besides Hindi,
in the interest of the Urdu-speaking people. The
Bench upheld the 1989 amendment and declared
Urdu as the States second official language. The
Benchs judgment focussed on the question of law
as to whether a State Legislature is precluded from
[9]
adopting another language used in the State if Hindi

has already been declared the official language.
Article 345 of the Constitution says that the
Legislature of a State may by law adopt any one or
more of the languages in use in the State or Hindi
as the language or languages to be used for all or
any of the official purposes of that State.
According to CJI Lodha, the separate mention of

Hindi in the Article was only meant to promote
Hindi among the States. This cannot be taken to
mean that the particular State Legislature must
sacrifice its power in promoting other languages
within the State.
NGT ASKS MINISTRY TO CLARIFY ON FRESH SURVEY

language suggesting that the objections may be filed
by any person on the proposals in the draft
notification of the area to be brought under
regulation. In addition, there was a press report that
it proposed to conduct a fresh survey, on the premise
that the two earlier panels relied on satellite data
for no-development zones, but surveys would find
out the actual situation on the ground and a decision
would be taken on the basis of this.
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The National Green Tribunal (NGT) has ordered

the Environment Ministry to file a detailed affidavit
within a week on whether States have been asked
to conduct a fresh survey of areas to be included as
eco-sensitive areas (ESAs). The NGT has taken this
step after the ignorance of the Environment Ministry
on Western Ghats conservation.
According to Justice Swatanter Kumar, who

heads the NGT, Dr. Madhav Gadgil report on the
Western Ghats as well as the Kasturirangan report
are doubtful. Both draft notifications on Ecologically
Sensitive Areas (ESA) issued by the Ministry
contemplated States mapping out on the ground the
extent of the ESAs, since the two reports had relied
on satellite data.
Justice Kumar said that the Ministry was
changing its stand every day. The Ministrys affidavit
at the last hearing said the Gadgil report was not be
processed. In another affidavit, it used vague
The affidavit, in response to an NGT order in

August, said that while responding to the proposals
contained in the draft notification, some of the State
governments of the Western Ghats region wanted
to demarcate the ESA by physical verification. The
Ministry had decided to give more time to the
governments of the Western Ghats region, except
Kerala, to undertake physical verification, if they so
desired, and submit their proposals latest by
December 15.
SWACHH VIDYALAYA CAMPAIGN
The Centre is all set to launch a Swachh Bharat

Kosh to fund its ambitious Swachh Vidyalaya (Clean
Schools) campaign anchored by the Human Resource
Development Ministry. The Ministry said that public
sector units under 25 Ministries have pledged Rs.
400 crore for the campaign and private and public
sector companies would be encouraged to build toilet
blocks in schools.
2014, is scheduled to be launched on October 2, 2014.

As part of the drive, public sector units under 25
Ministries have vowed Rs. 400 crore for the drive
and private and public sector companies would be
persuaded to build toilet blocks in schools. Tata
Consultancy Services and Bharti Enterprises have
pledged Rs 100 Crore each.
According to Union HRD Minister Smriti Irani, an

action plan was on to chart the implementation of the
campaign and the Ministry would initiate the process
of drafting a new cohesive education policy after
conducting nationwide consultations from January.
The campaign purposes to make sure the facility
of toilets in all government schools by August 15,
2015. Swachh Vidyalaya campaign is part of mission
to make India a clean country by 2019, the 150th
birth anniversary year of Mahatma Gandhi. Swachh
Bharat Campaign, announced by PM Narendra Modi
on the eve of 68th Independence Day on August 15,
[10]
INTERNATIONAL
23 COUNTRIES PARTICIPATE IN TSUNAMI MOCK DRILL
During the drill, ITEWC would generate and
disseminate 15 tsunami notifications to both
its National and Regional contacts through
GTS, email, fax, SMS as well as web.
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The Indian Tsunami Early Warning Centre

(ITEWC) participated along with 23 countries in a
major two-day Indian Ocean-wide mock drill which
simulated tsunamis generated by two large undersea
earthquakes on September 9 and 10 to test the
emergency response services in the region. ITEWC
will participate in the drill as National Tsunami
Warning Centre (NTWC) and also Regional Tsunami
Advisory Service Provider (RTSP) for the Indian
Ocean region, and would issue bulletins to all the
23 participating countries. Besides ITEWC, the
national tsunami warning centres of Australia and
Indonesia would act as RTSPs.
Features of the Tsunami mock drill:
The mock drill, organized under the auspices of

UNESCOs Intergovernmental Oceanographic
Commission, is aimed at testing the Indian
Ocean Tsunami Warning and Mitigation System
(IOTWS).
It is expected to increase preparedness,

evaluate response capabilities in each country,
the efficiency of communication among
different agencies and improve coordination.
The first scenario on September 9 will simulate
a magnitude 9.1 earthquake south of Java,
Indonesia, and begin at 0530 hours IST.
The second one will simulate a magnitude 9
quake in the Makran Trench, south of Iran
and Pakistan, and begins at 1130 hrs IST on
September 10. On both days, the drill will run
in real time for 12 hours.
During the drill, ITEWC will disseminate 15

bulletins to control rooms of the Ministry of
Home Affairs, the National Disaster
Management Authority (NDMA), coastal
States, NDRF, the Coast Guard, the Indian
Navy and critical coastal installations such as
ports and power plants.
The recipients at the national level include

control rooms of NDMA, MHA, Disaster
Management Offices of all coastal states/UTs,
NDRF, Indian Coast Guard, Indian Navy and
critical coastal installations (such as ports and
power plants).
Based on their level of planning and
preparedness, the recipients may decide to
limit this drill to check the communication
links between their institutions and INCOIS
or (ii) activate their standard operating
procedure (SOPs) and take it further down to
institutional/state/district/community level.
The Indian Tsunami Early Warning Centre

(ITEWC), based out of the Indian National Centre
for Ocean Information Services (INCOIS),
Hyderabad, an autonomous institution under the
Ministry of Earth Sciences, would participate in
this drill, both in its capacity as National Tsunami
Warning Centre (NTWC) for India as well as one
of the Regional Tsunami Advisory Service
Providers (RTSP) in the Indian Ocean region. The
ITEWC, operational since October 2007, has all the
necessary computational infrastructure for the
reception of real-time data from seismic and sealevel networks, tsunami modeling, as well as
generation and dissemination of tsunami bulletins
for the entire Indian Ocean region. Since 2011,
ITEWC, along with other RTSPs (Australia and
Indonesia), has taken over the responsibility of
providing tsunami bulletins of Indian Ocean
member countries, under the IOC/UNESCOs
ICG/IOTWS framework.
[11]
INDIA AND THE WORLD

INDIA INKS FTA WITH ASEAN
The country had implemented the FTA in goods
with Asean members in 2010, while it had concluded
the negotiations for FTA in services and investments
in 2012. With the signing of the pact in services and
investments, the FTA will now become a
comprehensive economic partnership between the
two sides.
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India has formally signed a free trade agreement

for services and investments with ASEAN, with
Philippines as the only ASEAN country yet to sign
the pact. All ASEAN members - Brunei, Cambodia,
Indonesia, Laos, Malaysia, Myanmar, the
Philippines, Singapore, Thailand and Vietnam are
expected to get the agreement ratified by their
Parliaments after which it will be formally adopted
during the next IndiaASEAN summit later this year.
The services agreement will open up
opportunities of movement of both manpower and
investments. The pact will allow India to leverage
its competitive edge in the areas of finance,
education, health, IT, telecommunications and
transport. This will be especially helpful for
balancing Indias deficit with ASEAN countries in
trade of goods. The IndiaASEAN Agreement on
trade in goods was operationalized in 2010.
Key to Indias interests is a brief annex in the

agreement on the movement of natural persons that
defines business visitors, intra corporate transferees
(managers, executives and specialists) and
contractual service suppliers. The move would help
provide a commercially meaningful market across
ASEAN for Indias professionals, including those
from the IT/ITeS sector. Independent professionals
have not been defined in the annex. The move is
expected to pave the way for freer movement of
professionals and further open up opportunities for
investments.
According to a government official, Mode 4, i.e.

the movement of professionals, has also been
incorporated in the agreement, something which will
immensely benefit Indian professionals like
chartered accountants and those from the IT and
ITeS sector. The Philippines had earlier raised
concerns that opening up of the services sector may
have an adverse impact on its own services industry
given Indias strength in the same.
Unlike in India, Asean members have to
approach their respective Parliaments for ratification
of such pacts. However, following the criticism, the
commerce department undertook a study to gauge
the impact of the FTAs on Indias trade. India has
signed FTAs with countries including Korea, Japan,
Singapore, Thailand and Indonesia. Trade between
India and the 10-member bloc stood at about $76
billion in 2012-13. Both sides aim to increase it to
$100 billion by 2015 and envisage lifting import
tariffs on more than 80 per cent of traded products
by 2016.
STRATEGIC TIES BETWEEN INDIA & AFGHANISTAN
Wide-ranging talks on political and security

situation were taken up recently by the External
Affairs minister Sushma Swaraj and Afghan
President Hamid Karazai. They also agreed to
intensify cooperation in areas like security and
defence. During the meeting, India expressed its
strong commitment to continue extending all
possible help to Afghanistan to meet various
challenges and conveyed that it will remain engaged
in the countrys reconstruction activities in a
significant way. Both the sides underlined the need
for expanding trade ties.
[12]
India is also expected to speed up various

development projects in Afghanistan. As NATO
forces prepare to withdraw from the country,
Afghanistan wants India to help it in meeting
security challenges. Afghanistan has been pressing
India for supply of military hardware and weapons
system to it. Afghan side also has conveyed to India
its security needs.
Swarajs visit also assumes significance as it
comes amid rising fears of the reemergence of the
Taliban and other al-Qaida linked elements in the
country following withdrawal of NATO forces by
end of the year.
but has been careful in supply of arms and military

hardware for fear of provoking Pakistan as well as
armed groups in Afghanistan. Among Indias major
infrastructure projects in the country include, the
highway from Zaranj to Delaram in South-Western
Afghanistan which is considered a symbol of Indias
commitment to reconstruction efforts in the country.
India is also constructing the Afghan Parliament
building. India has also taken initiative to develop
the Chabahar port in Iran which could act as a major
transit point for India to Afghanistan. Chabahar port
is strategically crucial as it gives access route to
Afghanistan. The port, which is surrounded by a
free trade zone, is vital for transit facility from India
to Afghanistan.
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Afghanistan is also waiting eagerly for the result

of the disputed second round of the presidential
election held in June. An audit of votes of the election
has already been completed and results may be
announced in the next few days. Former foreign
minister Abdullah Abdullah and former finance
minister Ashraf Ghani were in a tight race in the
polls and the winner will succeed incumbent
President Hamid Karzai who has been in power for
nearly 13 years. Afghanistan has been pressing India
for supplying military hardware to strengthen its
security set up in view of drawdown of NATO
forces.
India has invested $2 billion in aid and
reconstruction and trained scores of Afghan officers
INDIA NOT TO SIGN NPT
The Atomic Energy Commission has recently

ruled out India signing the Nuclear NonProliferation Treaty (NPT) since India is a strong
supporter of the non-discriminatory regime.
Even the Prime Minister sought to address

concerns of international community over India not
signing the NPT by saying that the countrys
commitment to peace and non-violence is engrained
in the DNA of Indian society which is above any
international treaty or processes. According to Modi,
India is a land of Lord Buddha. Buddha lived for
peace and suffered for peace and that message is
prevalent in India.
On the question of how India would enhance
trust of the international community without
changing its stand on Nuclear Non-Proliferation
Treaty (NPT), which it has refused to sign despite
possessing nuclear weapons, Modi used the example
of the land of Japan, which is the only country to
have been the victim of an atom bomb attack, to
send out the message on this issue amid moves to
have a civil nuclear deal with Tokyo. India refuses
to sign the NPT because it considers it as flawed.
Nuclear Non-Proliferation Treaty The NPT

aims to prevent the spread of nuclear weapons and
weapons technology, to foster the peaceful uses of
nuclear energy, and to further the goal of
disarmament. The Treaty establishes a safeguards
system under the responsibility of the IAEA, which
also plays a central role under the Treaty in areas
of technology transfer for peaceful purposes.Opened
for signature in 1968, the Treaty entered into force
in 1970. On 11 May 1995, the Treaty was extended
indefinitely. More countries have adhered to the
NPT than any other arms limitation and
disarmament agreement, a testament to the Treatys
significance. A total of 190 states have joined the
Treaty, though North Korea, which acceded to the
NPT in 1985 but never came into compliance,
announced its withdrawal in 2003. Four UN
member states have never joined the NPT: India,
Israel, Pakistan and South Sudan.The treaty
recognizes five states as nuclear-weapon states: the
United States, Russia, the United Kingdom, France,
and China. Four other states are known to possess
nuclear weapons: India, Pakistan and North Korea
have openly tested and declared that they possess
nuclear weapons.
[13]
ECONOMY
RBI TIGHTENS GUIDELINES GOVERNING LOAN DEFAULTS
Once a borrower or guarantor is classified as
defaulter, banks will cut further advances to
such defaulters and initiate legal actions for
recovery of the funds owed to the banks.
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The Reserve Bank of India (RBI) after tightening

the guidelines governing loan defaults, has said that
guarantors, group firms and management can also
be classified as willful defaulters by lenders.
According to banking sources, combined default by
50 corporates amount to over Rs 40,000 crore of bank
loans. Most of these corporates have refused to pay
up despite having capacity for repayment. Banks
will have to declare them wilful defaulters. The move
will result into creating a boundary that will cover
the group entities that act as guarantor and the
promoters, directors and managers of the company.
Finer points of the Guidelines:
If the guarantor refuses to comply with the

demand made by the banker despite having
sufficient means to make payment of the dues,
such guarantor would also be treated as a
willful defaulter.
This would apply only prospectively and not

to cases where guarantees were taken prior to
this circular.
Banks/FIs (financial institutions) may ensure
that this position is made known to all
prospective guarantors at the time of accepting
guarantees.
Banks have seen a rise in wilful defaults in

the recent past. When a default is made in
making repayment by the principal debtor, the
banker will be able to proceed against the
guarantor/surety even without exhausting the
remedies against the principal debtor.
The RBI has made it clear that the term unit
will include individuals, juristic persons and
all other forms of business enterprises, whether
incorporated or not.
In the case of business enterprises (other than
companies), banks may also report (in the
director column) the names of those persons
who are in charge and responsible for the
management of the affairs of the business
enterprise.
Further, while dealing with willful default of
a single borrowing company in a group, banks
should consider the track record of the
individual company, with reference to its
repayment performance to its lenders.
KISAN VIKAS PATRA TO BE REVAMPED
With the aim to channelize household

investments into the formal sector, the Finance
Ministry is set to revive small saving schemes.
Towards this end, the popular small savings product
of the 1980s and 1990s, the Kisan Vikas Patra is set
to stage a comeback while inflation-indexed bonds
for retail investors may be merged with the proposed
National Savings Certificate. The finance ministry
plans to launch the revamped version of the small
savings scheme next month.
The revamped KVP is expected to have relaxed

know-your-customer (KYC) norms but will continue
with its earlier tax treatment wherein there was no
deduction allowed under Section 80 C of the Income
Tax Act. Interest income on the KVP will also be
[14]
taxable. The revised KVP will continue to be

available at post offices to subscribers.
The objective is to wean away household savings
from investments like gold. KVP was very popular
amongst small savers as it guaranteed to double
investment over a period of time despite no tax
benefits. The scheme was however, discontinued
from November 2011 based on recommendations of
the Shyamala Gopinath panel on small savings over
apprehensions that it was used for money laundering
since it was a bearer instrument. The Finance
Ministry is also considering a plan to merge the
benefits of the inflation-indexed bonds for retail
investors with another small savings product.
The main objective of the inflation-indexed bond
is to provide protection from inflation. But the bonds

were not successful last fiscal due to a variety of
factors. As a result while the inflation-indexed bonds
for institutional investors would continue, the bonds
for retail sector could be merged with the proposed
National Savings Certificates that could include
inflation indexation.
The Finance Ministry reasons that too many

small savings products could also confuse retail
investors but continuing the inflation-indexed bonds
in the institutional sector would provide some
variety to the market. According to the Budget
announcement, the NSC would include insurance
cover to provide additional benefits for the small
saver.
MADHYA PRADESH IS NOW THE FASTEST GROWING

Pradesh, include Uttarakhand, Jharkhand and
West Bengal.
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In a year when India recorded its second

successive year of sub-5 per cent growth in the gross
domestic product, Madhya Pradesh out-paced all the
major states to top the economic growth charts with
a scorching 11 per cent growth in 2013-14. The high
growth in Madhya Pradesh has happened despite
the states industrial growth slipping to a new low
during the year.
Led by largely an agricultural boost and

expansion by the services sector, Madhya Pradesh
surge to the top has forced Bihar which had been
topping the growth charts in the last few years to
the third spot, with Uttarakhand moving up to
second place. If the growth rates of states during
the last three years are to be taken into consideration,
while Bihar continues to lead the charts with an
over 11 per cent average growth rate, Madhya
Pradesh is clearly the most consistent performer,
having progressively improved its performance with
every passing year and managing an average growth
of 10.2 per cent during these three years.
According to a Dun and Bradstreet projection,

11 states Madhya Pradesh, Maharashtra, Gujarat,
Tamil Nadu, Uttar Pradesh, Andhra Pradesh,
Karnataka, Rajasthan, Kerala, Bihar and Orissa are
slated to contribute significantly to future growth in
national GDP. According to the estimates, the share
of these 11 key states would rise to 76 per cent by
2019-20 as against 68.1 per cent during 2009-10. The
GSDP contribution of the so-called BIMAROU states
(Bihar, Madhya Pradesh, Rajasthan, Orissa and Uttar
Pradesh) to incremental GDP growth was 18.8 per
cent during 2000-01 and 2009-10.
Finer points of the survey include:
While Gujarat has been a consistent performer

at close to 8 per cent average growth, those
showing a sharp improvement in their state
domestic product growth, besides Madhya
According to CSO data, Madhya Pradeshs

gross state domestic product (GSDP) registered
a double-digit growth of 11.08 per cent at
constant prices, up from 9.9 per cent in 201213.
MP has been showing a strong growth of
above nine per cent since 2009-10, most of it
on account of a high growth in the agriculture
and allied sector, supplemented by a modest
growth in the services sector.
Growth rates in these two sectors have helped
compensate for the sluggish industrial
performance in the state. Industrial sector in
the state has been seeing subdued growth since
2009, expanding by only 2.1 per cent in 201314, down from 5.5 per cent in 2012-13.
Madhya Pradesh now ranks second highest in
foodgrain production in the country, only after
Uttar Pradesh, while non-food crops, especially
oilseeds, also showed encouraging growth.
The growth in agriculture is largely being
attributed to the additional irrigation facilities
created in the state in the last three years. In
2013-14, the GDP, which is a measure of the
value of goods and services produced in the
country grew by 4.7 per cent.
The economy had grown 4.5 per cent in 201213, with growth being hit by high inflation,
high interest rates and poor industrial sector
growth.
India is expected to register a GDP growth of

5.4 per cent-5.9 per cent in the current fiscal,
with the government betting on a return to a
higher growth trajectory over the next two
years.
[15]
BIHAR TOPS IN GROWTH

Bihar, which was once synonymous with
poverty, has emerged as the fastest growing state
for the second year running, clocking a scorching
13.1% growth in 2011-12. On the back of four years
of double-digit growth, its economy is now bigger
than that of Punjab until recently the preferred
destination of Bihari migrant workers.
Punjab, known as the grain bowl of India,

Andhra Pradesh and Karnataka and Uttar
Pradesh, the countrys most populous state,
registered growth that was lower than Indias
GDP growth of 6.5% in 2011-12.
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With the Bihar government taking up road

building and other construction work in a big
way, and with the states law and order situation
improving, consumers who were earlier wary of
flaunting their wealth are now buying cars and
bikes at an unprecedented pace. Rural demand
too has got a boost with agricultural productivity
rising for several crops, and with an improvement
in connectivity and state-funded programmes for
education, health and livelihood. Bihar is
currently among the fastest growing markets for
tractors.
Among the more industrialized states, only

Tamil Nadu was ahead of Gujarat with 9.4%
growth (at 2004-05 prices).
Tamil Nadu beat Uttar Pradesh as the second

largest state economy, after Maharashtra. UPs
economy was estimated to be worth Rs 4.19
lakh crore in 2011-12, while Maharashtra is
expected to retain its number one slot given
that its economy was worth over Rs 7 lakh
crore in 2010-11.
In recent years, Maharashtra has lost out on
investment to states such as Gujarat and Tamil
Nadu and growth has slowed.
Major findings of the CSO include:
Among the top five states, Bihar is followed

by Delhi and Puducherry.
Mineral-rich Chhattisgarh, which many had
written off for the violent Naxal movement,
and Goa complete the top five growth listings.
Gujarat- a favoured destination for investors,

both domestic and foreign, is again out of the
reckoning for the top five slots, expanding
9.1% during the last financial year.
INDIAS STAND GAINS SUPPORT AT WTO
India has won the support of major developed

countries, including the U.K. and Germany, as also
the European Commission, for its stand at the World
Trade Organisation (WTO) demanding that the
implementation of the Trade Facilitation Agreement
(TFA) be kept pending unless its apprehensions on
the issue of food security are addressed.
Indias perspective was presented at the Eleventh

Meeting of the Finance Ministers of Asia Europe
(ASEM) in Milan. Following protracted negotiations,
the ASEM agreed to not only drop a reference to
non-implementation of the TFA but also include the
need for implementation of all of the WTOs Bali
Ministerial decisions in its draft communiqu. Many
countries like the United Kingdom, Germany,
[16]
Finland, Austria, Switzerland, Sweden and the

European Commission emphasised on the need for
expressing deep concern on non-implementation of
TFA without mentioning Indias concern on the issue
of food security.
India is not opposed to the TFA as it increases
the ease of doing business but wants its adoption
postponed till there is satisfactory progress on
finding a permanent protection for its minimum
support prices to farmers against the WTOs
agriculture subsidy caps that are benchmarked to
food prices of the 1980s. At the WTOs General
Council meeting in Geneva on July 31, India stalled
the ratification of the TFA owing to these concerns.
India got a reference to BRICS and disappointment
with poor progress on the IMF quota reforms also

included in the ASEM communiqu. The
communiqu talks about enhanced cooperation
between countries of Asia and Europe to create

sustainable and profitable growth.
JAN DHAN YOJNA GIVES BOOST TO RUPAY GATEWAY

As the Pradhan Mantri Jan-Dhan Yojana
(PMJDY), the financial inclusion scheme notches up
impressive numbers and expects to meet its 7.5 crore
accounts target well within 100 days, payment
gateway RuPay is experiencing a boost in fortunes.
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Payment gateways are platforms that help banks

facilitate electronic money transfers. India is only
the fourth country in the world after the US, Japan
and China to have its own national payment
gateway, in RuPay. With the PMJDY getting nearly
2.5 crore new bank accounts within seven days of
launch, each account holder gets a RuPay debit card
along with his/her account. As a result, RuPay is
notching up numbers.
According to NPCI, by March 2015, RuPay may

be able to add an additional 10 crore accounts. If the
Centres financial inclusion scheme lives up to its
hype, the sheer number of RuPay cards in the
country will create a critical mass that will help in
creating a huge network of retailers who accept
RuPay cards. According to Reserve Bank of India
statistics, the total number of credit cards in India is
currently at around 1.9 crore while the number of
debit cards issued is at 40 crore. Currently, global
organisations such as Visa and MasterCard dominate
this space. But Hota says competing with
MasterCard and Visa is not a priority.
According to the National Payments Corporation

of India (NPCI), which developed the platform, the
RuPay card has a current base of 2.5 crore users and
is seeing about seven lakh inter-bank transactions a
day. With the financial inclusion scheme coming into
play, the total number of RuPay card holders is likely
to surge. NPCI will declare official numbers at the
end of this quarter.
The main challenges for RuPay are to get

acceptance among the high-income bracket and to
increase the number of transactions among those in
the lower income bracket. Partner banks have an
incentive to push RuPay to customers as transaction
costs through this gateway are expected to be at
least 40 per cent lower than through Visa and
MasterCard.
[17]
SCIENCE AND TECH.

WATER CLOUDS FOUND OUTSIDE SOLAR SYSTEM
because they offer clues to star-formation processes.
They also overlap with the temperatures of planets,
but are much easier to study since they are
commonly found in isolation.
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Jacqueline Faherty and his team has discovered

the first evidence of water ice clouds on an object
outside of our Solar System. Water ice clouds exist
on gas giant planetsJupiter, Saturn, Uranus, and
Neptune, but have not been seen outside of the
planets orbiting our Sun until now.
Faherty, along with a team including Carnegies
Andrew Monson, used the FourStar near infrared
camera to detect the coldest brown dwarf ever
characterized. Their findings are the result of 151
images taken over three nights and combined. The
object, named WISE J085510.83-071442.5, or W0855,
was first seen by NASAs Wide-Field Infrared
Explorer mission and published earlier this year. But
it was not known if it could be detected by Earthbased facilities.
Brown dwarfs arent quite very small stars, but

they arent quite giant planets either. They are too
small to sustain the hydrogen fusion process that
fuels stars. Their temperatures can range from nearly
as hot as a star to as cool as a planet, and their
masses also range between star-like and giant planetlike. They are of particular interest to scientists
W0855 is the fourth-closest system to our own

Sun, practically a next-door neighbor in astronomical
distances. A comparison of the teams near-infrared
images of W0855 with models for predicting the
atmospheric content of brown dwarfs showed
evidence of frozen clouds of sulfide and water.
According to Faherty, ice clouds are predicted
to be very important in the atmospheres of planets
beyond our Solar System, but theyve never been
observed outside of it before. This work was
supported by the Australian Research Council. It
made use of data from the NASA WISE mission,
which was a joint project of the University of
California Los Angeles and the Jet Propulsion
Laboratory and Caltech, funded by NASA. It also
made use of the NASA/IPAC Infrared Science
Archive, which is operated by the Jet Propulsion
Laboratory and Caltech, under contract with NASA.
INDARC TO AID CLIMATE CHANGE STUDIES
The deployment of IndARC, the countrys first

underwater moored observatory in the Kongsfjorden
fjord, half way between Norway and the North Pole,
represents a major milestone in Indias scientific
endeavours in the Arctic region. In order to help
scientists understand the Arctic climate process and
its influence on the Indian monsoon system, an
Indian observatory is quietly churning out data deep
in the frigid waters of the Arctic Ocean.
Designed and developed by scientists from the

Earth System Science Organisation (ESSO), National
Centre for Antarctic and Ocean Research (NCAOR),
National Institute of Ocean Technology (NIOT) and
Indian National Centre for Ocean Information
Services (INCOIS), IndARC was deployed from RV
Lance, which is a research vessel belonging to the
Norwegian Polar Institute.
The observatory is anchored at a depth of 192 m
[18]
and has an array of 10 state-of-the-art oceanographic

sensors strategically positioned at various depths in
the water. The sensors were programmed to collect
realtime data on seawater temperature, salinity,
ocean currents and other vital parameters of the
fjord.
The Kongsfjorden is considered a natural
laboratory for studying the Arctic climate variability.
Scientists predict that melting of the Arctic glaciers
will trigger changes in weather patterns and ocean
currents that could affect other parts of the world.
The interaction between the Arctic ice shelf and
the deep sea and its influence on climate shift
requires detailed studies over an annual seasonal
cycle. One of the major constraints in such a study
has been the difficulty in reaching the location to
collect data during the harsh Arctic winter. The
IndARC observatory is an attempt to overcome this
lacuna. The data collected by IndARC would be used

for climate modeling studies to understand the
influence of the Arctic processes on the Indian

monsoon system.
OZONE LAYER SHOWS RECOVERY

and the World Meteorological Organization (WMO),
without the Montreal Protocol and associated
agreements atmospheric levels of ozone depleting
substances could have increased tenfold by 2050.
There have in fact been decreases in atmospheric
abundance of gases such as chlorofluorocarbons
(CFCs) and halons, which are used in refrigerators,
spray cans, insulation foam and fire suppression.
The Scientific Assessment of Ozone Depletion,

2014 was prepared and reviewed by 282 scientists
from 36 countries. In 1987, ozone-depleting
substances contributed about 10 gigatonnes CO2equivalent emissions per year. The report said that
the ozone hole that appears over Antarctica has also
stopped growing bigger every year, though it will
be about a decade before it starts shrinking. Past
studies have suggested the ozone layer has stopped
getting worse. The 1987 Montreal Protocol that
banned or phased out ozone depleting chemicals,
including chlorofluorocarbons (CFCs) once widely
used in refrigerators and spray cans, would prevent
2 million cases of skin cancer annually by 2030
according to UNEP. The agreement would also help
avert damage to wildlife, agriculture, human eyes
and immune systems. The ozone layer was expected
to recover toward its 1980 level by mid-century, or
slightly later for Antarctica, where it gets
dangerously thin every year between mid-August
and November or December.
The Montreal Protocol, which was adopted that

year with the aim of reducing ozone depleting
substances, has been successful in reducing these
emissions by more than 90 per cent. This decrease is
about five times larger than the annual emissions
reduction target for the first commitment period
(2008-2012) of the Kyoto Protocol. According to
global models, the Protocol will have prevented 2
million annual cases of skin cancer by 2030, averted
damage to human eyes and immune systems, and
protected wildlife and agriculture.
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According to an U.N. study, the ozone layer that

shields life from cancer-causing solar rays is showing
its first sign of recovery after years of dangerous
depletion. As per experts, it was largely down to
global action - a 1987 ban on man-made gases that
damage the fragile high-altitude screen. The
agreement would help prevent millions of cases of
skin cancer and other conditions.
According to the assessment, carried out by the

United Nations Environment Programme (UNEP)
This is the first comprehensive update in four

years, and the summary document says the phaseout of ozone depleting substances has had a positive
spin-off for the global climate because many of these
substances are also potent greenhouse gases.
However, the report cautions that the rapid increase
in certain substitutes, which are themselves also
potent greenhouse gases, has the potential to
undermine these gains. It also notes that there are
possible approaches to avoiding the harmful climate
effects of these substitutes.
[19]
HEALTH
MINIMUM AGE FOR SMOKING LIKELY TO BE RAISED
minimum age for smoking to 25 years. They also
want fines for tobacco-related offences to be raised.
Among the suggestions that they have received is
one that says that the fine for smoking in public
should be Rs 20,000. It also want the sale of loose
cigarettes to be stopped and the size of the pictorial
warning to be raised.
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The minimum age for smoking is likely to be the

Tobacco Regulation Act is likely to be increased to
25 years from the current 18 years as recommended
by the expert committee set up by the Health
Ministry.
The committee is also in favour of raising fines
for tobacco related offences, including smoking in
public, but has decided that the increase should be
at a reasonable level. However, the final report on
amendments to the Cigarettes and Other Tobacco
Products (Prohibition of Advertisement and
Regulation of Trade and Commerce, Production,
Supply and Distribution) Act (COTPA), 2003, is not
yet prepared.
The Committee is in favour of raising the
The inputs of the committee are more of a

technical nature, delineating international best
practices and the health effects of tobacco. Among
the other offences for which the committee wants
fines to be raised are for sale of tobacco products to
underage people, advertisements at the point of sale
and repeat offenders especially when they are traders
or companies violating COTPA regulations.
[20]
NEWS IN BRIEF
OBITURIES
Ian Paisley
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Former Northern Irish First Minister Ian Paisley,

the firebrand Protestant leader, died recently. He
was known for his decades of intransigence and
impassioned rhetoric. In a feat few could match,
Paisley co-founded both a church and a political
party, leading the Free Presbyterian Church of Ulster
and the Protestant, conservative Democratic Unionist
Party (DUP). He gained a large group of followers
who were referred to as 'Paisleyites'.
for the next thirty years. In 1970 he became Member

of Parliament for North Antrim and the following year
he founded the Democratic Unionist Party (DUP),
which he would lead for almost forty years. In 1979 he
became a Member of the European Parliament.
Paisley became involved in Ulster unionist/

loyalist politics in the late 1950s. In the mid-late 1960s
he led and instigated loyalist opposition to the
Catholic civil rights movement in Northern Ireland.
This led to the outbreak of the Troubles in the late
1960s; a conflict that would engulf Northern Ireland
In 2005, Paisley's DUP became the largest unionist

party in Northern Ireland, displacing the Ulster
Unionists (UUP), who had dominated unionist
politics since the 1920s. In 2007, following the St
Andrews Agreement, the DUP finally agreed to share
power with Republican Party Sinn Fin. Paisley and
Sinn Martin McGuinness became First Minister and
deputy First Minister respectively in May 2007. He
stepped down as First Minister and DUP leader in
mid-2008, and left politics in 2011. Paisley was made
a life peer in 2010 as Baron Bannside.
AWARD
MIDORI Prize 2014
Indian scientist Kamal Bawa has won the 2014

Midori Prize in Biodiversity for his research,
including in climate change in the Himalayas. Bawa,
founder president of the Ashoka Trust for Research
in Ecology and the Environment (ATREE) in
Bangalore, will receive the prize with a cash award
of $100,000 during the Oct 16-17 Conference of
Parties (COP-12) to the Convention on Biological
Diversity (CBD) in South Korea.
The prize also honours his contributions to

research in ecology of tropical forests, sustainable
use of tropical forests, promoting engagement of civil
society in conservation efforts, and for his leadership
role in setting up ATREE. The announcement of the
prize was made recently at the Convention on
Biological Diversity Secretariat in Montreal, and at
the AEON Environmental Foundation in Japan, cohosts of the prize, according to a media release from
ATREE. The Midori Prize is regarded a major
element "at the service of the objectives of the United
Nations Decade on Biodiversity 2011-2020". In 2012,
Bawa, who has taught at the University of
Massachusetts for more than 40 years, had also
received international recognition as the recipient
of the first Gunnerus Award in Sustainability
Science, a major international prize. India, the current
chair of the COP-11 will pass the baton to Korea at
the COP-12 in South Korea. The theme of this year's

COP-12 meeting is 'Biodiversity for Sustainable
Development'.
The MIDORI Prize for Biodiversity
The prize was established in 2010 at the occasion

of the twentieth anniversary of the AEON
Environmental Foundation, which coincided with
the celebration of the International Year of
Biodiversity. The MIDORI Prize honors three
individuals who have made outstanding
contributions to conservation and sustainable use
at local and global levels, and who have
developmentally influenced various biodiversityrelated efforts, as well as raising awareness about
biodiversity. Each winner receives a certificate, a
commemorative gift and a monetary prize of 100,000
US dollars. The MIDORI Prize is co-hosted by the
Secretariat of the Convention on Biological Diversity
and will be a key instrument at the service of the
objectives of the United Nations Decade on
Biodiversity 2011-2020. Each recipient is awarded a
wooden plaque, a commemorative gift and $100,000
to support their work in safeguarding biodiversity.
Previous winners include Dr. Juan Carlos
Castilla, Dr. Rodrigo Gamez-Lobo, Dr. Vo Quy
among many others.
[21]
United Nations Special Envoy for Global

Education
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The awards are presented to recognize and

honour youth who have personally demonstrated
courage and leadership and acted as agents of
change for universal education. There are nine
winners of the 2014 Youth Courage Awards. They
come from Asia, Africa, Europe and the Middle East.
They have struggled for the rights of young people
to go to school and to overcome obstacles to
education such as child marriage, discrimination and
disablities.
Shweta Katti, who grew up in Mumbais red light

district of Kamathipura, had her first breakthrough
when she made it to the Bard College in New York
last year has been selected by the United Nations
Special Envoy for Education for the Youth Courage
Award, given to girls from around the world for
showing exemplary courage in promoting the cause
of girls education and dignity of women. Despite
many hurdles in getting a passport and securing
funds for her education, Shweta made it to Bard
College last year to pursue a degree in psychology.
Since has emerged as an icon for youngsters in
similar circumstances.
CULTURE & HERITAGE
Secrets hidden deep beneath Stonehenge revealed
Researchers have produced digital maps while

exploring beneath the World Heritage Site, using
ground-penetrating radar, high-resolution
magnetometers and other techniques to peer deep
into the soil beneath the famous stone circle. The
project produced detailed maps of 17 previously
unknown ritual monuments and a huge timber
building, which is thought to have been used for
burial ceremonies. New monuments have been
revealed, as well as new types of monument that
have previously never been seen by archaeologists.
The project also discovered big prehistoric pits, some
of which appear to be aligned with the sun, and
new information on Bronze Age, Iron Age and
Roman settlements and fields.
Among the discoveries announced are 17 ritual
monuments, including the remains of a massive
house of the dead, hundreds of burial mounds, and
evidence of a possible processional route around
Stonehenge itself. There's also evidence of a nearby
mile-long superhenge at Durrington Walls. The
discoveries result from the Stonehenge Hidden
Landscape Project, a four-year effort to create a highresolution, 3-D underground map of the landscape
surrounding Stonehenge.
The project team, led by researchers from the
U.K.'s University of Birmingham and Austria's
Ludwig Boltzmann Institute, mapped the area down
to a depth of about ten feet using ground-penetrating
radar, high-resolution magnetometers, and other
state-of-the-art remote-sensing equipment. In all,
nearly 3,000 acres have been excavated virtually,
making this the largest and most ambitious project
of its kind ever undertaken anywhere in the world.
[22]
Many of the 17 newly discovered monuments

appear to be shrine-like structures. The small circular
constructions, contemporaneous with Stonehenge's
busiest period, are placed around the main stone
ring and form a sort of Neolithic analogue to the
Via Dolorosa, held to be the path. With no written
records to fall back on, the mysterious stone structure
has spawned countless theories involving Celts,
Druids, Romans, and even the King Arthur legend.
Its original shape has been a matter of great debate,
including whether it was built as a semicircle.
Age old manuscripts soon to be online
Thousands of rare and original palm-leaf and

paper manuscripts at the Government Oriental
Manuscripts Library will soon be made available to
the public online.
The 72,300 manuscripts, providing a deep insight
into subjects as varied as the Vedas, the Agama
Sastra, architecture and mathematics, are being
digitised as part of a Tamil Nadu government
initiative to preserve the intellectual heritage of the
State. The digitised manuscripts will be hosted on
the website of the Archaeology Department, which
too is being modernized.
Most of the manuscripts at the 145-years-old
library are 300-400 years old, while some date back
to over 500 years. The palm-leaf manuscripts include
those of the Tamil classics Tirukkural and
Tolkappiam. The digitisation project will cover
15,000 estampages, impressions on paper of
inscriptions on temple walls and pillars, boulders or
stones, all of which are under the custody of the
Epigraphy Wing of the department. Nearly 5,000 of
them have been digitized. The project has been
sanctioned Rs. 2.84 crore; Rs. 2.34 crore for the work
on the manuscripts and Rs. 50 lakh for that on the

estampages. The project implemented by the
Electronics Corporation of Tamil Nadu is monitored
by groups of experts, both internal and external. The
department is using overhead scanners to prevent
any impact on the brittle manuscripts. Those not in
Sanskrit are being covered first. The Sanskrit
manuscripts, which constitute two-thirds the
number, have been microfilmed with the help of

the Indira Gandhi National Centre for the Arts. The
data will be transferred to digital form using
converter equipment. The basic idea is to make
available the precious body of knowledge in the
public domain so that more intensive research can
be taken up by scholars anywhere in the world, the
officials added.
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TERMINOLOGIES
Coal-gate
Generic drug
Coal has been a red-hot topic ever since the

infamous coal-gate scandal was flagged by the
Comptroller and Auditor General of India (CAG) in
March 2012. After a long saga that involved the
Prime Ministers Office, Central Bureau of
Investigation and many hearings, the Supreme Court
has already declared two weeks ago that all the coal
blocks allocated between 1993 and 2012 were illegal.
Coal-gate is the moniker attached to the
irregularities unearthed by the CAG in the allocation
of coal blocks to private parties. The Central
government has a monopoly over all coal reserves
in the country, as per the Coal Mines Nationalisation
Act of 1973. However, with Coal India struggling to
produce coal from the 1980s, power producers and
industries such as steel and cement were in pain. So
a new policy was announced in September 1993 to
allow private and public sector companies to mine
coal for captive use.
A generic drug is a pharmaceutical product, usually

intended to be interchangeable with an innovator
product, that is manufactured without a licence from
the innovator company and marketed after the expiry
date of the patent or other exclusive rights.
The new policy set up a screening committee to

recommend who got the blocks, based on certain
guidelines. Around 70 coal blocks were allocated
between 1993 and 2005 and over double this number
were allocated in the next four years. Even as
allocations slowed post 2009 and there were
rumblings of controversy, a CAG report in said that
the mode of allocation of coal blocks to private
parties was subjective and lacked transparency. It
also held that the ad-hoc allocations of coal blocks
to private firms, had caused a whopping loss of 1.8
lakh crore to the exchequer. A transparent
mechanism to pep up coal output is vital to keep
the economic engine chugging. Although India ranks
fifth in the world when it comes to coal reserves,
output has suffered. The cost of coal has a crucial
bearing on inflation too, via industries such as
power, steel and aluminium. Having a dependable
coal resource close to where it is consumed will
reduce overall costs. Hence, coal resources must be
handed out with a eye to greater national interest.
Generic drugs are marketed under a nonproprietary or approved name rather than a proprietary
or brand name. Generic drugs are frequently as
effective as, but much cheaper than, brand-name drugs.
For example, paracetamol is a chemical ingredient
found in a number of brand-name painkillers, but is
also sold as a generic drug (not under a brand name).
Because of their low price, generic drugs are often the
only medicines that the poorest can access. The TradeRelated Aspects of Intellectual Property Rights (TRIPS)
agreement does not prevent governments from
requiring accurate labelling or allowing generic
substitution. Indeed, it is argued that competition
between drug companies and generic producers has
been more effective than negotiations with drug
companies in reducing the cost of drugs, in particular
those used to treat HIV/AIDS.
A brand name is a name given to a drug by the
manufacturer. The use of the name is reserved
exclusively for its owner. Prescriptions may be issued
for drugs specifying only the chemical name, rather
than a manufacturer's name; such a prescription can
be filled with a drug of any brand meeting the
specification. Generic drugs are usually sold for
significantly lower prices than their branded
equivalents. One reason for the relatively low price
of generic medicines is that competition increases
among producers when drugs no longer are
protected by patents. Companies incur fewer costs
in creating generic drugs (only the cost to
manufacture, rather than the entire cost of
development and testing) and are therefore able to
maintain profitability at a lower price. The prices
are low enough for users in many less-prosperous
countries to afford them.
[23]
MISCELLANEOUS
September 9 to be Himalaya Diwas
The Uttarakhand government has officially declared
September 9 as Himalaya Diwas, that is, a day which
would be celebrated across the State to spread the
message of conservation of the Himalayan ecosystems.
Himalayan ecosystem:
sustenance of the Himalayan Ecosystem. g) Assist

in restoration and rehabilitation process of
Uttarakhand. The Mission shall also scientifically
assess the vulnerability of the Himalayan region to
climate change in all dimensions of physical,
biological and socio-cultural aspects. It would lead
to formulation of appropriate policy measures and
time- bound action programme to sustain its
ecological resilience and ensure the continued
provisions of key ecosystem services. The Mission
also aims to build and support capacities at the
Central and State levels to assess climate change
and formulate adequate response measures to
challenges in the Himalayan region. The Mission
also seeks to safeguard communities in the
Himalayas from the impacts of climate change
through evidence based policy formulation and
enhanced research and capacity. The marginalized
and vulnerable communities of the Himalayan
region will be the major beneficiaries of the Mission.
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The Himalayan slopes form a rich landscape of

forests, river valleys, mountain villages, alpine
meadows and lakes. The Union Cabinet had
approved the Mission document on the National
Mission for Sustaining the Himalayan Ecosystem
(NMSHE). This Mission was launched under the
National Action Plan on Climate Change (NAPCC)
with a budget outlay of Rs. 550 crore during the XII
Five Year Plan period. The primary objective of the
Mission is to develop in a time bound manner a
sustainable national capacity to continuously assess
the health status of the Himalayan Ecosystem and
enable policy bodies in their policy-formulation
functions as also to assist States in the Indian
Himalayan Region with implementation of actions
selected for sustainable development. The NMSHE
attempts to address a variety of important issues.
These are: a) Himalayan glaciers and associated
hydrological consequences.b) Prediction and
management of natural hazards. c) Biodiversity
conservation and protection. d) Wild life
conservation and protection. e) Traditional
knowledge societies and their livelihood. f)
Capacity in regulation of science and critical peer
evaluation to help governance issues related to
According to Environmentalist Anil Prakash Joshi,

this was the fifth year of the Himalaya Diwas
celebrations. Rallies were organised to mark the
occasion in various places across the State.
The Mission covers all 12 Himalayan States of

India in the Indian Himalayan region (IHR). These
include 10 hill States that is Jammu & Kashmir,
Himachal Pradesh, Uttarakhand, Sikkim, Arunachal
Pradesh, Nagaland, Manipur, Mizoram, Tripura,
Meghalaya, and two partial hill States namely,
Assam and West Bengal.
SPORTS
Bronze for Harika
D. Harika took the bronze at the last leg of the

2013-14 FIDE womens Grand Prix chess at Sharjah.
The fourth-seeded Indian defeated Batchimeg
Tuvshintugs of Mongolia, the 11th seed who had
FIDE womens Grand Prix chess
FIDE Grand Prix is a biennial chess tournament,

organized by FIDE. Each series consist of six chess
tournaments, which form part of the qualification
cycle for the World Chess Championship or
Women's World Chess Championship.
The Grand Prix was first played in 2008. Each

Grand Prix Cycle consisted of six single tournaments.
[24]
been having a dream run, to take her tally to 6.5

points from 11 rounds. Harika tied with Tuvshintugs
Zhao Xue of China and Anna Ushenina of Ukraine
on points but came ahead on account of her superior
tie-break score.
Often there were problems finding sponsors and
many announced host cities were changed
eventually.
The winner of the men's Grand Prix gets entry to
the Candidates Tournament. The winner of the
women's cycle is directly qualified to a championship
match. The women's edition has been dominated by
Chinese GM Hou Yifan, who won all editions so far.
EDITORIAL
LET THOUSAND NALANDAS BLOOM
attainments in higher education. But a massive stateled push to raise the bar of higher education in the
country has put China streets ahead of India. China
has not only made heavy investments in its
universities but has also put in place a carrot-andstick policy for faculty: allowing them more freedom
than earlier and incentives for publications while
restricting tenure to performers. After an initial
thrust on expanding the reach and quantity of higher
education, China has managed to impose quality
controls on its university system.
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More than 800 years after it was razed to the

ground, the Nalanda University witnessed a rebirth
last week in the pilgrim town of Rajgir in Bihar,
with the induction of the first batch of students in
the born-again university.
The rebirth of Nalanda, which was among the
pre-eminent centres of global scholarship in the first
millennia, should make us look carefully at the state
of Indias academic life today, and make us think
about what steps the country can take to become a
thought leader in the world once again.
A vibrant network of universities is among a

countrys most potent assets, which can raise the
bar of scientific progress in the country, alter the
quality of public debate, and help a society
understand and transform itself. Judged against such
benchmarks, Indias university system comes across
as a pitiable failure, which refuses to engage with
society, much less attempt to influence it.
Our record in breakthroughs in the physical
sciences is appalling and less said about academic
research in the humanities and social sciences the
better. Barring notable exceptions, most important
works on Indian society in recent times have been
by scholars of foreign universities. Our dependence
on other countries for ideas has only grown over
the past few decades, as some of our best and
brightest minds left the country for foreign shores.
In the years following Indias independence,

there was a brief spurt in institution building, when
a host of new research institutes and departments
were set up. But like most other institutions in the
country, those have also wilted under the incessant
pressures of bureaucratic control and interference.
The so-called centres of excellence appear to have
become quagmires of mediocrity and petty
politicking.
In stark contrast to the festering rot in Indias
higher education system, the Chinese education
system has been completely transformed over the
past two decades by an ambitious Chinese leadership
seeking to build world-class universities in the
country. At the beginning of this century, both India
and China were similarly placed when it came to
According to rankings by the British education

firm Quacquarelli Symonds, China accounted for
40% of the top 100 universities in BRICS countries
in 2014 while India accounted for only 15% of them.
It will be useful to institute short-term contracts
and build accountability mechanisms in Indias
universities as China has done, even while freeing
top appointments from political control. But that
alone wont be enough. India can hardly afford to
replicate Chinas strategy of raising state investments
manifold in higher education given that our primary
and secondary education system will continue to
need heavy state funding for some time to come.
What India must do is end the license permit raj in
education that the University Grants Commission
(UGC) has instituted, and facilitate the entry of
private universities.
There is a fear that opening up the higher
education sector will lead to a proliferation of
dubious degree granting rackets but such fears are
based on the assumption that the end users lack
adequate information. Information asymmetries can
be corrected by robust and credible ranking systems.
The role of the government should end in facilitating
such a system. One of the encouraging trends over
the past few years in India has been the setting up
of new educational institutions by prominent
businessmen. The least the government owes them
is greater freedom.
Indian academia is in dire need of fresh air, and
UGCs wings must be clipped, if need be, to facilitate
a more open and liberal environment for ideas,
pedagogical innovations, and original research to
flourish in the country.
Source: LiveMint
[25]
THE CHILDREN THE PM COULDNT SPEAK TO

teachers to collect this information using an
undefined methodology. In the final analysis,
therefore, it is anybodys guess how many children
are in fact out-of-school.
In addition to the lack of clarity or accuracy of
data, the problem is made worse by the fact that all
this information (barring the CTS) is available only
at aggregate levels. At the village, panchayat or block
level, these records are neither maintained nor
systematically tracked.
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The recently released report of the Global

Initiative on Out-of-School Children, based on a
situational analysis of India, opens a Pandoras box
on data and methodological issues that plague the
estimation of out-of-school children in India. As the
report reveals, there is a multiplicity of definitions,
sources of data and methods of estimation in use,
but none that can be relied on to capture the full
extent of the problem. As a result, it is not clear
how many children are actually out of school, who
they are, where they reside and why they are not in
school. Unfortunately, no worthwhile effort is being
made to move towards achieving that clarity or
finding a solution for the millions who continue to
remain beyond the pale of formal schooling.
Since the passage of the Right to Education Act,
which mandates that every child in the age group
of 6-14 years must be in school as a matter of her
fundamental right, the estimation of out-of-school
children has assumed greater significance. But,
despite the legal ramifications, there is still no
appropriate definition of an out-of school child or a
standardised method of estimating the number.
Information on out-of-school children is collected
either from schools or through household surveys.
The first set relies entirely on data from school
registers or information supplied by teachers. The
margins of error in this method are self-evident. But
the larger problem lies in the method of estimation,
or the lack thereof. For instance, the DISE (district
information system for education now the official
data collector on education) provides a net enrolment
ratio by collecting data on the number of students
enrolled in different age groups. The difference
between this and the number estimated to be in the
relevant age group can then be considered as not
enrolled. The number of dropped-out children is
calculated separately from the difference in
enrolment of a cohort over two consecutive years.
Besides the inaccuracies involved, there is in effect
no actual estimate of out-of-school children.
Household surveys, on the other hand, rely on
different definitions of dropout. While the National
Family Health Survey uses figures for the officially
dropped out, others account for those who have not
attended school on any day in the past two
months, and states across the country vary in their
interpretations, ranging from seven days of
continuous absence (Karnataka) to three months of
continuous absence (Gujarat). The Child Tracking
Surveys (CTS) the latest in the list employ
[26]
How, then, can the government, which is under

legal obligation to ensure that every child is in
school, do so, when it does not even know the
scale or scope of the problem?
In order to address the problem of out-of-school
children with any seriousness, there are some basic
issues that need to be addressed. The first deals with
the coverage of out-of-school children. While there
is no ambiguity about a child being never enrolled,
there are several categories of never-enrolled
children that are systematically left out. For instance,
children of migrant and nomadic families; street and
homeless children; children engaged in labour;
children in conflict with the law or in need of care
and protection; and increasingly, children living in
conflict zones. These invisibilised children may
never get to school unless focused efforts are made
to recognise them and count them in.
The second issue relates to the understanding of
who a dropped-out child is. Recently, the
government of India declared that a dropped-out
child is one who is absent for 45 days, but without
clarifying whether it covers continuous absence or
not. However, the question is, does this measure
really capture the scope of the problem? The reality
is that many children are regularly irregular,
attending school for a few days at a time and then
remaining absent the next few.
Scores of other children attend for only some
part of the school day, leaving after the midday meal
is served. But none of the current measures captures
these facts. Can these children be considered as being
in school? Further, the DISE does not capture
attendance data, basing its estimates on enrolments
alone. And the states that are collecting data on
dropouts based on attendance do not use them to
update their enrolment records only for
organising special training circumventing the
issue of estimating the out-of-school yet again. Under
the RTE Act, the states obligation is clear: regular
community must be involved in the creation and

use of information. At present, the data regime is
too remote to be able to initiate change on the
ground.
The third issue is the absence of a reliable

database at the local level. Under the RTE, the
responsibility of tracking children has been given to
the panchayats, but with no resources or
corresponding capacities created to do so. Instead,
it is the teachers who have been asked to conduct
the CTS. The fact that they might have an incentive
to under-report or that this task adds to their burden
of non-teaching duties and might not lead to accurate
estimates has been completely ignored. Besides, this
information is not in the public domain, so no one
knows which children have been included and
which have not. In order to track children, the
More than four years after the RTE was passed,

the state has no handle on the numbers of children
who are being denied their fundamental right to
education, let alone strategies on how to get them
into school and keep them there. In light of the
publicity given to the prime ministers address to
children in school, can we spare a thought for those
who did not get to hear the PM on Teachers Day?
Can one hope that the PM will acknowledge those
less fortunate and initiate appropriate steps towards
recognising the problem in its entirety and making
a commitment towards overcoming it?
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attendance and retention, not just enrolment. How

can the government continue to hide behind
inappropriate definitions and shy away from
accurate estimations?
Source: Indian Express
THIS PARROT CANT BE SET FREE
The bird does not, any longer, seem to be as

caged as it was so famously made out to be last
year. It is now clear that no curbs were placed on
the bird when it decided to nest freely with whoever
it wanted. Whether these meetings enhanced the
birds new-found freedom or placed it in some other
cage, this time by non-state actors, will hopefully
be known sooner rather than later. But it is clear
that it may not always be a good idea to let all such
birds fly free.
The issue of the Central Bureau of Investigations

freedom and autonomy has engaged the courts, civil
society and the media for long. It acquired extra
urgency in the last few years, when high
functionaries of the government were accused of
corruption and eventually investigated by the CBI,
sometimes under the direct supervision of the
Supreme Court. The suspicion in the public mind
about the CBIs freedom in pursuing investigations
against public servants stems from the predictable
behaviour of the agency in turning the switches
against many accused on or off, in tune with the
change in composition of the Central government.
The serious-minded in both the media and civil
society, however, have little faith in the impartiality
of the CBI, although, paradoxically, all of us,
including sometimes even the judiciary, keep
demanding that every case be handed over to the
CBI. Since we have little patience to follow up on
the cases so investigated, we lose interest until
another high-profile matter surfaces. Taking
advantage of our exaggerated dependence on it, the
CBI loses no opportunity in creating an impression
that it would perform better and reach a higher

degree of excellence if only its director were vested
with more powers, nobody in government spoke to
it, no citizen bothered it with RTI queries and all its
funding requests were met, no questions asked. The
media has played a stellar role in hyping the CBIs
lack of freedom, in tandem with the courts
occasional observations.
What is the truth behind this widely held
assumption? Is the lack of freedom rooted in
deliberate government design or in the CBIs
architecture itself? How much freedom is good for
any investigating agency like the CBI? I have some
idea about the relationship the government has with
the CBI, having worked in the department of
personnel and training (DoPT), the administrative
ministry. I renewed my knowledge when I heard
appeals against the CBI as chief information
commissioner. It is no exaggeration to claim that no
one in the DoPT ever discusses with any CBI officer
the cases it is investigating, formally or informally.
There is no arrangement for this. If the minister in
charge discusses such matters with the CBI at any
level, that must be informal and cannot carry the
force of the government. After the Vineet Narain
judgment, the CBI director is appointed on the
recommendation of the Central Vigilance
Commission (CVC) for a fixed tenure of two years,
irrespective of the date of retirement, and no
government can sack him until he is caught in a
flagrant act of misconduct. All other senior officers
are also appointed on the recommendation of the
CVC, and again for fixed terms.
[27]
courts, as if it has infinite capacity at its command.

Competence, or lack of it, is a bigger problem than
independence. An incompetent officer is more likely
to fall prey to pressures than one who is diligent
and knowledgeable.
When we speak of the CBIs independence or
autonomy, we have only some corrupt ministers or
politicians or civil servants or PSU officers in mind.
We forget that, in all cases of corruption, there are
far too many non-state actors who orchestrate the
fraud. How do we insulate the CBI from them? If
the government will have no control and be only a
witness or spectator and if citizens cannot access
any information, since the CBI stands exempted from
the RTI by a government notification the only
way to keep tabs on its functioning would be
through what has been unfolding in the media over
the last few days. This is unseemly and demoralising
for the rank and file in the CBI. Because of its very
nature, the CBI needs to be strictly accountable. It
cannot be let loose, sometimes on innocent and
unsuspecting public servants to ruin them, and other
times on the guilty only to botch up the cases against
them either for lack of competence or due to
complicity.
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Once appointed to the CBI, all officers work

under the full control of the director, totally insulated
from government, as there is simply no need for
any contact. Even in the matter of its budget, the
CBI enjoys the same freedom and operates under
the same discipline as any other government agency.
In other words, unless CBI officers willingly, for
reasons best known to them, accede to abide by any
unlawful request or pressure from anyone in
government, there is no institutional mechanism to
compel the agency to abide by the wishes of the
government.
The CBI is a Central police organisation like the

IB, CISF or BSF. IPS officers are posted to senior
posts in these bodies on deputation from various
state cadres. There is a perpetual crisis in getting an
adequate number of such officers. The reduced levels
of recruitment to the IPS all through the 1990s has
made it all the more difficult to get mid-level officers
to man key supervisory positions. The CBIs own
cadres do not go higher than the mid-level, if that.
They mostly work as inspectors, deputy
superintendents and superintendents of police, that
is, the key positions for investigative work. I
understand that there has been no direct recruitment
to the CBI at the DSP level for more than two decades
now such posts are now being filled only by
promotion and, consequently, affecting the quality
of manpower at this critical level.
Although the CBI increasingly investigates more
cases involving corporate finance, international
taxation, company law and banking, its manpower
continues to be much less multi-disciplinary than
one would expect. In most states, the police are rarely
called upon to deal with such matters and, hence,
the competence of the IPS officers drawn from such
states in these areas would be limited. Like most
government departments and agencies, the CBI thus
has serious issues of competence. To aggravate the
situation, every other day, new investigations are
thrust on it from myriad sources, including the
In our contempt for the corrupt politician and

desperation with the civil servant, we should not
remove all the bars of the cage and let the bird fly
free. Both government and citizens must exercise
adequate supervisory control over the CBI and its
officers, not so much the detail of how it investigates
but rather how it conducts itself and, more
importantly, what work ethic it adopts and how
competently and often it succeeds in bringing the
guilty to book and if there is any accountability
of its officers for any failure to do so. The courts
cannot supervise it all the time, and they should
not. The present controversy can be a good moment
to begin these reforms.
INSURANCE CAN BE BAD FOR HEALTH
Last month, Union Health Minister Harsh

Vardhan offered a glimpse into the new
governments universal health assurance scheme, of
which insurance will be an important component.
Health insurance is also part of the Pradhan Mantri
Jan Dhan Yojana, the NDA governments financial
inclusion programme. But international experience
does not support the governments push towards
universal health insurance.
[28]
India has a single-payer health system, at least

in principle, which was intended to be financed by
tax revenues and available free for all at government
facilities. In large parts of the country, due to
underfunding and poor management, this system
has functioned poorly, as indicated by low facility
utilisation rates. Meanwhile, private spending on
health has soared.
International experience points to the dangers

in moving towards a system of health insurance
coverage. Improving government services is the
answer.
People anywhere, however well-educated, have

difficulty evaluating their doctors. But this problem
is hugely compounded when poor people are faced
with the entire spectrum of service providers,
ranging from world-class to witch doctors, with little
to help them distinguish where on this spectrum a
particular health provider lies. And even if doctors
were properly accredited, accompanied by some kind
of stamp of quality that could be displayed to
patients, it would be hard to prevent health
providers from putting up counterfeit signboards.
What chance would poor patients have in ensuring
that health insurers provide them the coverage they
are supposed to receive?
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Universal health insurance coverage with

subsidies for the poor is intended to protect people
against the high costs of healthcare, which can push
them into debt and poverty. But international
experience shows that this is a dangerous path for
India to take, because such systems are expensive
and complex to manage. But with relatively simple
changes, the government health system could be
made highly competitive.
accreditation is a key obstacle. First, there are vast

numbers of non-registered medical practitioners who
fall outside the formal system. Second, registered
practitioners and healthcare facilities are lightly
regulated at best.
Studies of other countries health insurance

systems unambiguously show that insurance-based
systems cost far more than single-payer systems and
need tight government regulation of both insurers
and health providers, in the fees they charge and
services they provide. A tiny, tightly governed
country, such as Switzerland, is able to regulate
insurance-based care, but its system costs 70 per
cent more per capita than the developed country
average.
Where the health insurance system was not

tightly regulated, as in the United States, people were
at the mercy of insurance companies that could
refuse coverage to or charge high premiums from
all but the healthy, and find pretexts for refusing to
reimburse an insured person who needed care. Costs
are further inflated by doctors financial incentives
to increase the number of tests and procedures.
Compared with developed country averages in 2011,
US health spending per capita was nearly twice as
high but with poorer outcomes, such as a 50 per
cent higher infant mortality rate. Since at least the
1930s, successive governments in the US have sought
to introduce a single-payer system for all, but have
been thwarted by powerful opposition from the
health industry.
Most developed countries have universal health

coverage financed by tax revenues, achieving good
results despite the demands of their ageing
populations. Japan is especially striking. It has
excellent mortality indicators, with per capita
expenditures slightly below the developed country
average, despite its high proportion of elderly
people. Among developing countries, Thailand
illustrates the efficiencies that can be achieved with
public financing of healthcare.
India faces a far more daunting task than the US
in providing the necessary regulation of health
insurers and private health providers. Doctor
Also, the private sector has no incentive to

provide services aimed primarily at reducing
population exposure to disease, as opposed to
treating a patient. This includes measures to reduce
the spread of infectious diseases and helping local
governments meet their mandated sanitary
responsibilities. These services are provided by the
government health system to different degrees in
different states, with Tamil Nadu offering a useful
model. Such services are critically important in India,
given the frequent outbreaks of infectious diseases.
Government health services are not particularly
difficult to improve. There are two major reasons
for the poor functioning of government health
services in many states. First, government financing
for health is extremely low: in 2012, Indias allocation
of GDP to health was among the lowest in the world.
Added to this is the policy trend towards collecting
at least partial user charges for many services
while also promoting the concept of health
insurance. Both policies undercut the concept of
free, publicly financed healthcare. Second, the
Central governments focus on specific programmes
undermines the states ability to focus on the overall
health system.
Despite this, the data indicate that the public
sector is still beneficial in many states, especially for
poorer people. High proportions in some states
report that they seek healthcare from government
facilities: over 70 per cent of the poorest 40 per cent
households in Tamil Nadu, and 90 per cent in
Himachal Pradesh. The average for India is only 38
per cent, indicating that many states would benefit
[29]
from learning from the higher-performing states.

Improving government health services is simple
compared to running an insurance-based system.
Staff performance needs to be monitored and living
and working conditions improved. Facility
infrastructure needs upgrading and drug supplies
must be made available.
If India were to move towards a system of health

insurance coverage, whether privately or publicly
financed, it would likely plunge the country into
the kind of morass that the US has experienced for
nearly a century. It would be far easier for the
government to improve the functioning of health
services that are directly under its control.
CATALYSE, DONT CONTROL

One, scenario planning must supplement,
perhaps even substitute, five-year resource allocation
plans. Scenario planning, based on disciplines of
systems thinking, enables all forces, including nonquantifiable social and political forces, to be included
in an analysis of the economy. Scenarios are dynamic
in the guidance they provide. They are not predictive
of precise outcomes but explain the actions
stakeholders should take to produce the outcomes
they desire.
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The future of Indias 64-year-old Planning

Commission is a hot topic. The prime minister has
declared it dead. He says the country needs another
institution, with new capabilities and a new
orientation, to set the country in a new direction.
What should the shape of this institution be? Its
name? He has invited suggestions from the people
of India.
A small group within the last Planning

Commission (which demitted office in June 2014)
had looked around the world for insights that India
could apply to a new institution, to processes that
other countries are using and have used to accelerate
the growth of industry, jobs and infrastructure.
These countries range from Japan in the 1960s
and 70s to Korea in the 80s and China in the 90s
and early 2000s. They also include the US today,
especially the state of California, an entrepreneurial
state that is the antithesis of the Soviet Union, from
which India adopted the architecture of its central
planning systems. Californians have felt an urgent
need to improve public infrastructure, such as
education, urban and transport infrastructure and
the management of water resources. A bipartisan
Think Long Commission examined the planning
practices of other countries, including China, to
devise a structure to guide the development of
California.
The new institution replacing the Planning

Commission cannot carry on trying to coordinate
the states and industry with a control mindset and
with the (diminishing) authority to allocate money
as its source of power. It must play a catalytic role
instead. It must learn to deploy processes that spur
a system of independent actors states, private
enterprises, civil society to take a course that will
benefit the nation.
A systematic analysis of what India needs today
and international best practices suggests that four
functions must be the core of the new institution to
catalyse development and growth.
[30]
Two, platforms must be created to connect

stakeholders so that they can learn from and
coordinate with each other. For example, the states
must meet each other in well-designed and wellconducted meetings, in which the Centre plays the
role of active facilitator rather than issuer of money
and instructions. Similarly, platforms must be created
for inter-city learning and for the exchange of ideas
between states and regions on how industrial
relations can be improved, thereby enhancing the
productivity of all enterprises in the region.
Three, the best methods for systematically
turning contention among stakeholders into
collaboration, and confusion into coordination must
be injected into the system. Such methods,
introduced through the Total Quality Movement,
were the accelerators of Japans rapid development.
Such methods for stakeholder collaboration are
institutionalised in Germany and Sweden, and
explain the ability of these countries to steer through
economic crises and maintain strong manufacturing
industries even with high wages and strong
currencies. Malaysias Pemandu methodology and
Germanys Capacity Works methodology, both for
large-scale sectoral improvement with the systematic
involvement of all stakeholders, were brought into
India recently by the India Backbone Implementation
Network, an innovative solution conceived by the
Planning Commission. It is interesting to note that
even in China, citizen participation in city planning
has been introduced. And China has disseminated
disciplines of project planning across the country.
Indian flotilla of states, private enterprises and

citizens. The new institution may perform other
functions too. However, it must not drift from its
core purpose, which is to guide the progress of
the country and to catalyse faster learning, better
coordination and faster implementation. This is what
an aspirational, richly diverse and democratic India
needs in a Planning Commission replacement.
States, Central ministries and others should go
to this institution not because it has the power to
give them money (which it will not) or because it
has the authority to withhold and grant permissions
(which it should not have, this being the prerogative
of the executive). They should respect the institution
because they value its foresight and the guidance it
gives them for improving their own strategies and
building capabilities.
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Four, the new institution for reforming systems

must be a node that induces faster learning and
implementation in a large network of thinking and
acting institutions. It need not be must not be
a large bunch of experts in the domains in which
the country needs to improve. The solutions need
not come from the expertise within the nodal
institution. They will be more robust when they
come from the intelligence of the entire system, in
which there will be many experts, some with
theoretical knowledge and some with practical
knowledge. The role of the new institution must be
to stimulate the use of this knowledge to address
the challenges of the country. Its expertise must be
in the design and facilitation of processes required
for large learning enterprises.
These are the four core architectural requirements
for an institution to accelerate the advance of the
WHERE MONETARY POLICY IS IRRELEVANT
The CPI data has just been released, and contrary

to expectations, the annual rate of change (year-onyear) in the index was a very respectable 7.8 per
cent. This is the fourth lowest monthly CPI number
since February 2008, when a weighted average of
rural and urban inflation rates registered 6 per cent.
The lowest CPI inflation since then was in June of
this year 7.2 per cent. That is 78 months of data
since February 2008, and two of the four lowest
inflation months have occurred in the last three
months.
The RBI has been fighting the good fight against

inflation and many would be tempted to conclude
that monetary policy is working towards reducing
inflation and inflationary expectations. There have
been three clear policy initiatives outlined by the
RBI the need to anchor inflationary
expectations, the need to keep policy rates high
and the need to implement inflation targeting.
Perhaps all three measures have worked to reduce
inflation or, perhaps as documented here, none
of these three initiatives has had any role in
lowering inflation.
Tight monetary policy has as much to do with

Indian inflation as it has to do with Indias
magnificent loss to England in the recently
concluded Test series. In a series of articles (academic
and journalistic) written over the last decade, I have
attempted to document that the traditional measures
of monetary and fiscal policy some version of
money supply or credit growth or fiscal deficits
do not explain, at all, the path of inflation in India.
Econometric models based on these variables, no

matter how manipulated, explain zilch about Indian
inflation.
Two variables are key to explaining Indian
inflation. First, and obviously, international inflation
plays an important role. However, the model that
Indian inflation is some function of international
inflation has broken down over the last decade. So
what does explain Indian inflation, not only for the
last 10 years but for the last 40? The policy of
minimum support prices (MSP) for food determined
by politicians at the Centre. MSP inflation explains
a large fraction of the variance in CPI inflation
around a 5 per cent mean.
The Indian inflation model is a one-variable, onetrick pony CPI inflation is explained by MSP
inflation of the previous year. The model simply
says that the predicted inflation in any year is 5.1
per cent plus a third of the lagged MSP inflation.
That is it. No repo rates, no real interest rates, no
money supply growth, no fiscal deficits, nothing else.
The model is estimated from 1978 (the policy of MSP
came into being in 1975) till 2004. This end-year gives
one a decade of out-of-sample prediction, as reported
in the table.
A lot has happened in India, and the world, since
2004 the last year for which inflation and MSP
data has been used to determine the model. The
average error of the model 2004-14 is only 0.25 per
cent, with the largest over-prediction in 2009 (actual
10.9 per cent, predicted 13.2 per cent) and the largest
under-prediction in 2010 (actual 11.9 per cent,
[31]
predicted 8.2 per cent). The fact that the large errors
follow each other is a positive aspect of the model.
Excluding these two large errors, the average
prediction error is a low 0.1 per cent, with a range
of -1.6 to 2 per cent. Such accuracy is not a function
of luck or randomness.
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Apart from accuracy, the model has strong

implications for the RBIs repo policy aimed at
reducing inflation. Since May 2013, the repo rate
has increased from 7.25 per cent to 8 per cent, while
GDP growth has plumbed to multi-decade lows. But
inflation has declined by 200 basis points from
around 9.5 to around 7.5 per cent. Before (the
monetarist) one gets carried away by saying we
told you so, note that the repo rate increased from
6.25 per cent in end-2010 to 8.5 per cent end-2011;
this not only had zero effect on inflation but was
actually correlated with increasing inflation!
I quote from the RBI report: current perceived

median inflation rate is 13.3 per cent, whereas
median inflation expectations are 14.0 per cent for
the three-month ahead period and 15.0 per cent for
one-year ahead period; and The proportion of
respondents expecting double-digit inflation in next
three-month period have declined marginally to
about 72.0 per cent. Since January 2011 (43 months),
the maximum y-o-y inflation was 12 per cent, and
the average was 9.8 per cent. Over the last 24 months,
average inflation has been 9.5 per cent and maximum
inflation 11.2 per cent. Pure junk was never defined
better than the results of the RBI expectations survey,
the very same that the RBI uses for information on
anchoring inflationary expectations.
If not deficient demand and not tight money,

then why is inflation down by over 200 basis points
in 2014? Its because of the MSP, stupid. In 2012, the
MSP was increased by 16.2 per cent, so predicted
(and actual) inflation in 2013 was close to 10.5 per
cent. In 2013, the MSP increase was 6 per cent and
both predicted and actual inflation were close to 7
per cent. Bulls eye (for details, see table).
RBI Governor Raghuram Rajan has a CPI
inflation target for end-December 2014 at 8 per cent
and end-December 2015 at 6 per cent. The MSP
model says that both targets will easily be met, with
the average inflation for 2015 predicted to be 5.8 per
cent. Given that inflation rates are falling from lofty
heights, it is likely that December 2015 inflation will
be closer to 5 rather than 6 per cent.
The simple point is that inflation in India is a

structural problem, and one whose structure is not
determined by excess demand or deficient supply,
or by mis-measured inflationary expectations, but
by what the political arm of the government decides
to do about winning elections and consequent votepriming of rich farmers. We have just seen the
disastrous consequences of such a policy for the
political side of the equation. Food is 50 per cent of
the CPI, so aiming monetary policy at food inflation
is the same as raising interest rates to force Saudi
Arabia to cut the price of oil.
I dont know if more documentation or

confirmation is necessary to verify that monetary
policy has played a zero role in either its rise to 10
per cent-plus for six years or its predicted fall to
around 5 per cent by end-2015. A friendly challenge
is offered to the RBI and monetarists (hawks and
doves) to either prove where my analysis is wrong
or even suspect or to offer a monetarist, inflationtargeting, anchoring inflation expectations, real
interest rates model to explain any of the CPI
inflation over the last decade. A fair duel deal?
And yes, an additional request to the RBI. Please
junk your inflation expectations survey before it
causes more damage to your enviable reputation.
Making repo policy on the basis of the inflationary
expectations survey is exactly the same as making
policy according to a random noise generator. The
latest June 2014 survey has the following gems, and
[32]
MAKING TRADE-OFFS
liberalisation of the FDI caps in multibrand retail
and areas like accountancy and legal services, India
is pressing the EU for cuts in agricultural subsidies.
Also in the pipeline are agreements with Canada
and Israel, which have been stalled for various
reasons. It is in Indias interest to explore creative
solutions to the contentious items in these treaties,
such as keeping out tariff reductions on agricultural
products from the EU FTA.
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The free trade agreement in services and

investment that India signed with Asean on Monday
is expected to make the movement of professionals
easier and promote investment. This comes on the
back of the FTA in goods with Asean in 2009. While
the exact benefits from FTAs are difficult to quantify,
they increase investor confidence within member
countries by providing legal benefits and sureties.
These agreements are important not just for foreign
investors coming into India, but also for Indian
investors looking to invest abroad. This is also the
moment, therefore, to revisit several other bilateral
agreements that are still being negotiated in order
to ensure that they are concluded soon. Although
these agreements might be structured in such a way
that some industries appear to lose in the short run,
consumers in the country would gain and greater
competition will make the industry healthier in the
long run.
India and the EU began negotiating an FTA in
2007, for instance, but a final agreement has still not
been reached. While the EU has been demanding a
Properly regulated, foreign trade can stimulate

the flow of investment into a capital-starved country
like India. Additionally, there are a number of
indirect benefits to be had, such as technology
transfers and closer financial integration with the
global economy. However, to attract foreign
investors, the ease of doing business will have to be
improved and assurances on the stability of legal
frameworks provided. Given the impasse at the
WTO, the Asean FTA is welcome. Now the
government must find mutually acceptable
compromises for the other FTAs.
DEGRADATION AND DENIAL
I have always abhorred untouchability and the

manual scavenging twinned with it. But I have
seldom felt so shamed and angered as I did on
reading Bhasha Singhs deeply moving and wellresearched book, Unseen: The Truth About Indias
Manual Scavengers. Untouchability and all its
attendant manifestations stand abolished under the
Constitution. Yet the scourge, officially ended by
turning a Nelsons eye to its stark existence, remains
widespread, though possibly diminished, only to be
routinely abolished every few years.
The charade is played out at every level social,
political, administrative and across the board
through clever definitions, devious legal exceptions,
obtuse administrative procedures and rank
dishonesty in pretending that that which is, is not.
Manual scavengers are left to clean the stinking mess
and wait for deliverance. For how long?
The prime minister prioritised toilets, especially

for schools and the girl child, in his Independence
Day address and set out a timetable. But manual
scavenging goes beyond building or converting dry
latrines, and must embrace an integrated system of
sanitation and water supply, treatment and disposal
that must cover septic tanks and the Indian Railways,
which scatter waste nationwide. The essential

problem is not money, technology or even
management. It is the failure to prioritise, the absence
of social will and the hidebound remnants of caste
among those yet to emerge into the modern age.
According to Singh, even with the passage of
the Manual Scavengers and Construction of Dry
Latrines (Prohibition) Act in 1993, there were 2.6
million insanitary latrines in India (2011 Census) and
7,94,390 manual scavengers. In her investigations,
spread over nine states, Singh found that it is mostly
women who engage in this loathsome task as they
can more easily access the dry latrines at the back of
houses, through the zenana quarters. The number
of houses they service is, in some areas, collectively
known as a jagirdari. The larger the jagirdari, the
more these wretched people can afford to eat. But
many keep off yellow dal as it reminds them of the
excrement they clean.
Much as I admire him, Gandhi justified, even
extolled, manual scavenging by equating cleanliness
with godliness. He did immense harm to Hindu
society and social reform by propagating strange
theories that tended to perpetuate caste. Such
antiquarian notions persist. In his book, Karmayog,
[33]
researched and written on water and sanitation

issues, city by city. The data is there; the will is
lacking and India, to its shame, ranks very near the
bottom of the international league in performance.
The burden of ill-health and disease cast on the
nation by insanitation is crippling. And our priorities
have been woefully wrong.
Focusing on ending open defecation through
building toilets cannot, by itself, solve the problem.
A chain of structures, facilities and processes has to
be put in place, adequately funded and monitored
at a number of levels. This will have to be combined
with an unremitting campaign of social education
to fight caste and the sanction it gives to such
degrading practices. Uniforms and common dining
help create a sense of equality, as do sports and
team work. Manual scavengers must also be trained
in skills and given rehabilitation loans.
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published in 2007, Narendra Modi, then chief

minister of Gujarat, likened valmikis (manual
scavengers) to temple priests in the service of god
through society. A Times of India reproduction of
this text was translated and published in Tamil,
causing a huge uproar among Tamil Dalits, who
resented scavenging being called a spiritual
experience. Five thousand copies of the book were
withdrawn but the underlying idea was not rejected.
More recently, a Gujarat state-sponsored report,
Impact of Caste Discrimination and Distinctions on
Equal Opportunities: A Study of Gujarat (May 2013)
described caste discrimination as a matter of
perceptions. Obviously, perceptions differ
radically.
Manual scavenging is practised by Hindus,
Muslims and Christians who have been bound to
this inhuman practice by cruel necessity as well as
both state and social lethargy. A number of
associations and institutions, Bindeshwar Pathaks
Sulabh Shauchalaya movement among them, are
fighting to end this scourge and to expose official
and judicial indifference to the law and the
constitutional right to dignity. Barring a section of
the Left, most political parties and cadres are
indifferent. Parliament has turned its face away
rather than confronting this evil until it is eradicated.
The Centre for Science and Environment has
Few know the root meaning of the word

rehabilitate. It entails an endeavour to invest in
dignity. What a noble concept, going far beyond the
tawdry definition that prevails. The best places to
begin the campaign for bhangi mukti are homes and
schools, where attitudes are shaped. The media too
can play a positive role and has done so on occasion.
But, alas, human waste and the degrading trade of
manual scavenging seldom make news.
IF THEY SPLIT
The possibility of divorce between the United

Kingdom and Scotland has led to all kinds of
questions about the division of assets. While Alex
Salmond and Alistair Darling, the leaders of the
opposing sides, trade barbs over dreary matters like
the future of the pound and nuclear weapons, Scots
might be losing sight of whats really at stake. For
instance, what happens to Queen Elizabeth and the
monarchy? Will she have to be sworn in as the
Queen of Scots? The royal family owns several
estates in Scotland, either directly or through the
crown estates. So even if shes not head of state,
shell still be the landlady.
And then, Scotland may want to keep the queen,

but will they also want the rest of her family,
including Prince Charles, the kilt-wearing, organicfarming heir apparent? For that matter, will Charles
continue to wear kilts in England, or will that be
seen as too big a slight? And what happens to the
Englishs beloved tartan prints? George Osborne,
[34]
chancellor of the exchequer, has petulantly

threatened to cut off access to Scotlands favourite
beverage not its world-renowned Scotch, as one
might be forgiven for thinking, but a potent
concoction called Buckfast Tonic Wine, which is high
on alcohol, caffeine and other tantalising chemicals,
and low on price. And have the secessionists
considered that England might convey its depression
by refusing to telecast Doctor Who, like any
vindictive spouse exercising their right to deprive
their erstwhile partner of their record collection?
Mostly, though, while the English mournfully
swirl their soon-to-be-unpatriotic single malts at
night, wondering why Scotland doesnt want to try
a spot of relationship counselling on Jeremy Kyle,
the rest of the world is diverted by the prospect of
a new Eurovision contestant bagpipes and all.
GERMANYS GREAT GREEN GAMBLE

environmental objectives has undoubtedly been the
primary motivation for this remarkable change. A
legislation for promoting renewable energy was first
enacted 14 years ago. It has undergone many changes
subsequently, but the anchor remains the concept of
a feed-in tariff that depends on the technology
being used. Anybody can invest in solar or wind
power, sell surplus power to the grid and get a
generous income that covers investment and running
costs, guaranteed for 20 years, regardless of demand.
The grid operator has a legal obligation to connect
the installation and an obligation to accept electricity
whenever it is produced. As a result, there are now
close to 5 million small producers individuals
and cooperatives accounting for around half of
the installed renewable energy capacity. This means
that some 6 per cent of Germans are energy
producers. This is the nearest equivalent to the
mobile phone revolution. The structure of electricity
generation has been thoroughly shaken up and the
four big private utilities have been consistently losing
market share.
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The Germans gave the word kindergarten to the

world of education. They gave the term
wirtschaftswunder to development economics to
describe their countrys remarkable economic
transformation immediately following World War
II. Now, in the area of sustainable growth, another
typically compound German word is inviting global
attention: energiewende. This refers to the profound
energy transition Germany is going through. For a
country dubbed as the sick man of Europe at the
beginning of this century, the achievement is
stupendous.
Today, already something like 30 per cent of

Germanys electricity supply comes from solar and
wind energy and the country is actually exporting
power. The goal is to increase this contribution to
50 per cent by 2030 and a staggering 80 per cent by
2050. Smaller countries in Scandinavia have similar
achievements and ambitions but Germany is
completely different because it is the worlds preeminent industrial economy and has a population
of slightly over 80 million. The scale of what
Germany has accomplished over the past decade
and a half is what gives it wider relevance, especially
to large countries like India.
At present, Germany has around 37,000

megawatts of installed solar energy capacity. In
addition, it has another 29,000 megawatts of installed
wind energy capacity. What has given renewables
new momentum is the decision of Chancellor Angela
Merkel to completely phase out Germanys present
nuclear power generating capacity of about 12,000
megawatts by the year 2022. There has always been
a strong anti-nuclear movement in Germany and
this got a fresh impetus following the Fukushima
catastrophe in 2011 which prompted the Chancellors
dramatic volte-face. It was a bold decision given
that when Fukushima happened, Germany was
getting between a fifth and a quarter of electricity
supply from its nuclear power plants. It is the
complete decommissioning of all such plants in eight
years coupled with an overriding emphasis on
energy efficiency that gives energiewende a unique
dimension. However, question marks do remain on
how much coal capacity Germany will end up
adding to compensate for abandoning nuclear
power.
The primary motivation

Meeting
domestic
and
international
Controversies
However, the transition has not been without

controversy. The most contentious issue is whether
consumers are paying more now than they were
earlier. The cost of renewables is financed out of a
surcharge on the bills of consumers. Of course, many
consumers have themselves turned producers, but
that apart, there appear to be two views. One view
is that German household expenditure on electricity
has not changed over the past decade and that the
latest increase will cost the consumer every month
the equivalent of a pint of beer. But the fact remains
that energy prices will continue to increase since
the large-scale use of renewable sources does require
extensive grid, storage and backup infrastructure.
The gamble is criticised as being expensive but it
cannot be denied that it is expansive.
That is perhaps one reason why according to
some surveys, over two-thirds of Germans
supportenergiewende, which actually goes well
beyond electricity generation and embraces changes
in energy use in transportation and housing as well.
The Indian context

What about the energy transition in India? At
present, wind energy capacity is close to 22,000
megawatts and solar amounts to another 2,650
[35]
strategic leadership in the green technology industry

globally in about a decades time also is very real
provided it is linked with a strong indigenous
research and development and engineering
capability. New avenues for employment will
accelerate. A very recent study by the Council on
Energy, Environment and Water and the National
Resources Defense Council has estimated that
around 24,000 jobs have been created in the last three
years alone when solar capacity has increased from
around 1,800 to 2,650 megawatts. In Germany, the
renewable energy sector employs close to 4,00,000
people and therefore, as capacity and supply
contribution expands, green employment in India
too will grow substantially.
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megawatts or so (nuclear is about 4,800 megawatts).

Capacity wise, wind and solar account for about 13
per cent of total electricity generating capacity,
although contribution to actual energy supply is
perhaps no more than six per cent. In April 2014,
the Planning Commissions expert group on low
carbon strategies for inclusive growth had released
its final report that suggested that by 2030, the share
of solar, wind and biomass in electricity supply be
tripled to around 18 per cent. Unfortunately, this
report has yet to get the full public attention it
warrants.
The main difference with Germany, of course, is
that in 2030, Indias energy supply basket is projected
to have an eight per cent contribution from nuclear
energy as well. In terms of capacity, wind energy is
recommended to increase to 1,20,000 megawatts and
solar to 1,00,000 megawatts by the same year. These
may look like daunting goals at the moment but
they are eminently feasible, especially given the fact
that India is more favourably endowed in solar
energy and in some parts, even in wind energy.
The energy transition which will have to be

driven by innovations in technology, regulation and
financing will bring multiple benefits. It will, of
course, increase energy security and also reduce
emissions of carbon dioxide. It will also have
significant positive impacts on public health and also
stimulate development in regions that have remained
backward so far. The possibility of India acquiring
If a comprehensive valuation of benefits is done,

as the expert group boldly pointed out, even with
lower GDP, the low carbon strategy is worth
pursuing. In any case, the reduction in the average
annual GDP growth rate by the expert groups own
reckoning by the use of low carbon strategies is 0.10.15 percentage points.
That is, instead of say a 8 per cent growth rate,
you will end up having a 7.85-7.90 per cent growth
rate. Surely, this is by no means any kind of disaster,
especially when all the gains of green growth are
reckoned and taken into account fully. India is ready
for another 4G revolution great green growth
gamble.
Source: The Hindu
CLEARANCE WITHOUT COMPLIANCE
Minister of State for Environment, Forests and

Climate Change Prakash Javadekars answer in
Parliament on August 13 on the reconstitution of
the National Board for Wildlife (NBWL) is worth
examining. In reply to four questions by the
Communist Party of India (Marxist) Lok Sabha
member M.B. Rajesh on the Board being recast
without the mandatory number of non-government
members and the reasons for violations, he blandly
said this was done through a notification dated July
22.
While the Board was reconstituted, it did not

have the five mandatory NGO representatives or
the ten persons to be nominated by the Central
government from among eminent conservationists,
ecologists and environmentalists, as mandated by
Section 5A of the Wildlife Protection Act. Besides,
the notification only referred to the Standing
Committee. It was not surprising therefore that the
Supreme Court on August 25 stayed the decisions
[36]
of the diluted Standing Committee of the NBWL,

after a petition challenged the constitution of the
Board.
Speedy clearances
This is only the latest instance that diminishes

any hope of transparency or adherence to the law in
the new governments Environment Ministry. On
July 28, the Ministry issued another office
memorandum easing conditions for coal projects
all in the interests of ramping up coal production
which were initiated by the previous Congress-led
regime. In December 2012, the United Progressive
Alliances Environment Ministry issued guidelines
for exemption from public hearing with respect to
existing coal mining projects which apply for onetime capacity expansion of up to 25 per cent in the
existing mining operation. There are a slew of
concessions this year for the coal industry after the
new government took charge.
repeatedly been talking of removing roadblocks to

development. In the first meeting of the reconstituted
Standing Committee of the NBWL, Mr. Javadekar
reportedly said projects would not be held up due
to frivolous reasons. The Standing Committee
cleared most of the 140 proposals before it. The
agenda of the meeting was not made public and
neither was the notification appointing the new
Committee. This lack of transparency can also be
seen in the functioning of the Environment
Ministrys Genetic Engineering Appraisal Committee
(GEAC) which had not met for over a year. This
Committee also had over 70 pending proposals. In
July, it cleared some genetically modified crop field
trials. Unlike in the past, neither its agenda nor the
minutes of the meeting are posted online.
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For all its purported sympathy for environment

and sustainability, the powers that be didnt think it
fit to appoint a Minister dedicated to the
environment. Mr. Javadekar has two other important
portfolios and even if he admirably juggles between
the Parliamentary Affairs, Information and
Broadcasting, and Environment Ministries, there are
many deficiencies. Not a day passes by without some
proposal coming up to dilute existing green laws.
The Minister is considering granting a general
approval for projects near the China and Pakistan
borders where some 6,000 kilometres of roads were
pending and there was need for vital installations
and infrastructure. The need for speedy clearances
was addressed in the Ministrys own notification in
2012 which said that in the case of border roads,
proposals of the Ministry of Defence a simplified
pro forma for simultaneous clearance under the
Forest Conservation Act and wildlife clearance
was being adopted under a single-window system.
One wonders what happened to that.
The Forest (Conservation Act), 1980 expressly
prohibits conversion of forest land to non-forest use
without the Centres nod but this general approval
would ensure that proposals need not go to the
Centre at all. Some senior forest officials said unless
the Act was amended, this kind of general approval
could not be granted. However, Mr. Javadekar
specified that no amendment was needed and the
decision was in keeping with the law. Since 1980,
the Centre has approved 11,29,294 hectares of forest
land for various activities including ecotourism. With
the forest cover at 69.79 million hectares or 21.23
per cent of the geographical area as against 33 per
cent mandated by the National Forest Policy, the
country cannot afford to lose more.
Environmental lawyer Ritwick Dutta told The

Hindu that many dilutions have been in the offing
for a long time, but in the case of the National Green
Tribunal (NGT), it would be very difficult to recast
it as an administrative or quasi-judicial body as
suggested by reports. When asked, Mr. Javadekar
ruled out any such change in the NGT. Mr. Dutta
said the NGT cannot be wished away as it was an
act of Parliament. While green laws have been
facing threats throughout, what is different now is
the lack of concern for environment protection.
While there was emphasis on transparency in the
form of clearances, what about compliances? You
cannot be selectively transparent.
Lack of transparency
The top leadership in this government has
The Environment Impact Assessment (EIA)

Notification, 2006, is another casualty. As it is, the
public hearings under the Act which are mandatory
for projects have been reduced to a farce. A
notification from the Environment Ministry on June
25, 2014, amended the process, exempting certain
categories of projects from the EIA. But the most
important change is that earlier projects that were
within 10 kilometres of Protected Areas would have
to be vetted by the NBWL, but now, that distance
has been reduced to five km, says Pushp Jain of the
EIA Resource and Response Centre. The guidelines
by the Environment Ministrys Wildlife division of
December 19, 2012, (in pursuance of the order of the
Supreme Court dated December 4, 2006) say that in
case any project requiring environmental clearance
is located within eco-sensitive zones around a
Wildlife Sanctuary or National Park, or in absence
of delineation of such a zone within a distance of 10
km from its boundaries, the project proponent is
required to obtain recommendations of the Standing
Committee of the NBWL. This has been modified to
five km now.
There was much celebration after the Ministry
launched online environmental and forest clearances
in the last three months. Even though no time frame
for clearances was specified, it is assumed that speed
would be the essence. The Centres start has not
been propitious despite its proclamations of
sympathy for sustainable development. After 100
days of the new government, a four-member highlevel committee headed by former Cabinet Secretary
T.S.R. Subramanian was formed to examine five
laws: the Environment (Protection) Act, 1986, the
Forest (Conservation) Act, 1980, the Wildlife
(Protection) Act, 1972, the Water (Prevention and
Control of Pollution) Act, 1974, and the Air
[37]
(Prevention and Control of Pollution) Act, 1981.

Among the four terms of reference in the order dated
August 29 was that the committee would
recommend specific amendments needed in each
of these acts to bring them in line with current
requirements to meet objectives. Coming after so
many dilutions, this sounds very ominous.
All the laws that are being sought to be pared

down have come in response to deep-seated
motivations and environmental concerns. By
proposing to reduce their worth, the government is
doing a serious disservice which can have
irreversible consequences.
Source: The Hindu
A RED HERRING FOR JUDICIAL INDEPENDENCE

This argument is flawed both in theory and
practice. Theoretically, the acceptance of such a view
as affecting the independence of the judiciary would
mean actively disincentivising judges from
adjudicating cases involving politicians, where free
and fair justice would be most required. The
speculative insinuations made simply owing to a
judge hearing such a case, irrespective of the validity
of judicial reasoning employed, have the pernicious
effect of tarnishing a judges reputation. Accepting
judgeship does not include an implied acceptance
of character assassination and must not become so.
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According to a popular legal adage, hard cases

make bad law. In such cause clbres, the need to do
justice, respond to widespread public interest and
factor in the welter of emotional argument, often
clouds dispassionate judgment. The appointment of
Justice P. Sathasivam, former Chief Justice of India,
as the Governor of Kerala, less than five months
after his retirement as Chief Justice, though not a
legal dispute, is an archetypal illustration of such a
hard case. Interwoven are issues of the independence
of the judiciary, purported favouritism by the
government to express gratitude for a favourable
decision and the desirability of post-retirement
employment of judges to a range of governmentappointed positions. Several critics, commentators
and politicians have been quick to decry his
appointment as an assault on the independence of
the judiciary. While the post-retirement appointment
of judges by government, especially very soon after
their retirement, might lead to justifiable doubts
about judicial independence, to use Justice
Sathasivams appointment as Governor as an
illustration mischaracterises the issue. It is oblivious
to deeper, systemic concerns surrounding postretirement employment and proceeds on an
excessively fragile conceptualisation of judicial
independence.
Judicial independence as dogma
Speaking in the Constituent Assembly, Alladi

Krishnaswamy
Ayyar
warned
against
conceptualising judicial independence as a dogmatic
requirement. Unfortunately, it is precisely such a
dogmatic conceptualisation that is widely prevalent
today. Such a view considers any interaction between
the executive and the judiciary with grave suspicion.
Independence, according to it, is fragile and capable
of being eroded at the slightest provocation. Its
manifestation can be seen in the wanton speculation
linking Justice Sathasivams appointment with a
decision given by him quashing a second FIR
registered against Amit Shah in the Sohrabuddin
Sheikh encounter case (Supreme Court, 2013).
[38]
Need for systemic reform
In practice, without direct evidence of a quid pro

quo, or circumstantial evidence of excessive closeness
between Justice Sathasivam and the government or
any other interested political party, claiming judicial
independence to be adversely affected is simply
baseless. Even if it is argued that it is not whether
the independence of the judiciary is actually affected
that is the test but whether there is a reasonable
perception that it is so, this reduced threshold is
also not met in this case. It would require turning a
blind eye to the fact that Justice Sathasivam has been
appointed Governor by a government that is
different from the government in power when he
served as Judge of the Supreme Court and the Chief
Justice of India. Further, such an argument would
have to be premised on a particularly self-serving
conception of a reasonable person as being cynical,
captious and dismissive of the notion of judges as
persons of high integrity. It would also have to be
a person with a superhuman ability to read between
the lines of what otherwise reads as an entirely
tenable judgment delivered by Justice Sathasivam
on the facts of the case. It is trite that such a person
would hardly be the exemplar of reasonableness.
This is not to suggest that post-retirement
employment of judges in government-appointed
positions does not raise legitimate concerns of
judicial independence, but simply that this instance
does not encapsulate these concerns. In a study by

the writer of a representative sample of 50 retirees
from the Supreme Court between 2002 and 2012, it
was found that 37 judges held post-retirement jobs
in 46 government-appointed positions; 14 of these
appointments were made by the executive alone.
An independent governor
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The numbers demonstrate that the widespread

criticism that the judiciary has faced for accepting
such positions is arguably justified. The Union
Finance Minister, Arun Jaitley, a former Law
Minister had pithily remarked of there being two
kinds of judges those who know the law and
those who know the Law Minister. Governments
too have been deemed to be complicit in the erosion
of judicial independence that such appointments
occasion. Justice V.R. Krishna Iyer, writing
extrajudicially on post-retirement employment
noted, Judicial afternoons and evenings are
sensitive phases, the incumbent being bothered
about post-retiral prospects. The Executive plays
upon this weakness to bend the integrity or buy the
partiality of the elderly brethren.
up tribunals and commissions and manning them

with a professional cadre of tribunal judges or sitting
members of the higher judiciary on deputation must
be urgently considered. If these are implemented, a
post-retirement bar on tribunal and commission
employment of judges the pervasive cause of
doubts regarding judicial independence can be
legitimately proposed. This has no relation
whatsoever with the appointment of Justice
Sathasivam as Governor of Kerala.
While both the judiciary and the executive are

shown in less than salutary light in the matter of
post-retirement employment of judges, to suggest
that judicial independence is affected simply by
pliant judges and a devious executive would be
overly simplistic. On the contrary, concerns over
judicial independence are deeper and systemic; 24
out of the 37 judges who have been employed postretirement in government-appointed positions have
held the office of a commission or statutory tribunal
Chairperson or Member; 23 out of these 24 positions
have required a sitting or retired judge by law.
Further, these statutes seek to make full use of the
early retirement of Supreme Court judges at 65 and
even earlier retirement of High Court judges at 62.
By usually providing a minimum of three years of
service beyond such age, these statutes underline
that judges are capable of performing a significant
public function beyond the age at which they are
considered past their prime for judicial office.
This demonstrates that the current pervasiveness
of post-retirement employment of judges leading to
concerns about judicial independence is at its core,
traceable to statutes setting up various tribunals and
commissions that require a judge by law combined
with the early retirement age for judges.
To address this, two interventions are necessary

first, the retirement age of both Supreme Court
and High Court judges must be increased to either
68 or 70 consistent with a widespread international
trend; second, an amendment to the statutes setting
As far as the independence of the judiciary being

affected is concerned, Justice Sathasivams
appointment is thus a red herring. The key
independence question does not pertain to the
judiciary but rather the potential his appointment
has to restore the independence of the office of the
Governor. Both the United Progressive Alliance
(UPA) and the National Democratic Alliance (NDA)
governments are responsible for generally treating
the office of Governor of a State as a sinecure for
party members, sympathisers and loyalists. In a
political atmosphere where gubernatorial
appointments are considered by the government and
grudgingly accepted by the polity as such, the
appointment of a retired judge can be seen as
restoring to some extent the dignity of an exalted
constitutional office or at least starting a conversation
on the principles that ought to govern such
appointments.
It cannot be anybodys case, that in comparison
to party old-timers, Justice Sathasivam does not bring
an independent, politically neutral and dispassionate
perspective
to
the
Raj
Bhavan
in
Thiruvananthapuram. Unlike a significant
proportion of recent appointees, he bears no overt
political affiliations and can discharge his
constitutional duties without aspersions on his
independence. His appointment, unlike other
appointments by the present NDA government so
far, is the only one perfectly consonant in letter and
spirit with the observations of the Supreme Court
in B.P. Singhal v. Union of India (2010) wherein it
said, [T]here is no question of the Union
Government having Governors who are in sync with
its mandate and policies.
Though one swallow does not make a summer,
Justice Sathasivams appointment as Governor has
the potential to reinfuse a semblance of
independence into a hopelessly partisan office. This,
rather than its impact on judicial independence, is
what it is a precedent for. Conflating the two,
[39]
especially by making speculative arguments, would

amount to a mischaracterisation that is unfair to
Justice Sathasivam and counter-intuitively
detrimental to the very independence of the judiciary

that such arguments ostensibly seek to protect.
Source: The Hindu
ISRAEL, A GIFT OF THE ARABS

migrant Jews actually made the state of Israel
possible on the ground. Israel is, quite literally, as I
have argued in a forthcoming book, a gift of the
Arabs even as the land transfers occurred without
Palestinians realising that a Jewish State was in
the making.
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A tenuous truce has interrupted the most recent

and devastating round of violence in Israel and the
Palestinian territories. I was in Israel on May 31,
2010 when the Gaza Freedom Flotilla had been
attacked by Israeli commandos. This was the
culmination of Operation Cast Lead (2008) during
which Gaza had been subject to phosphorus
bombing, killing an estimated 1,400 persons, one
third of them children, and even targeting
educational institutions for harbouring refugees.
Gaza is a slum, a person working with an NGO had
told me then. This time it has been rendered a
desolate graveyard with over 2,000 dead and a third
of the population having fled.
Source of terror
Islamic terror has become the popular topic of

drawing room conversations in the last decade. The
doings of Hamas and Hezbollah, the Taliban and
most recently of the Islamic State have provided
much fuel to the fire. There is little reference,
however, to the state as the source of terror of which
Israel is currently the prime example.
Anti-Semitism has plagued the Jews for two
millennia and is often invoked to justify Israeli
impunity. Ironically, the Arabs have historically not
been participants in this history of racial hatred. On
the contrary, it was in Arabia that the Jews sought
refuge after they fled Jerusalem following the
destruction of Second Temple.
In his story of a small Moroccan town Dammate

in the High Atlas Mountains, anthropologist
Abdellah Hammoudi describes a ritual exchange of
yeast between Jews and Muslims staged each year
in a celebration called Mimouna held during the
last day of the Jewish Passoves (Pessah). The
exchange shows how despite there being hierarchy
and inequality for Jews in Muslim dominated
polities, there was civility, hospitality and even
friendship. There is substantial historical evidence
available to show how Jews were thriving in the
Abbasid and Ottoman Empires. The present state of
Jewish-Muslim relations, therefore, is an inversion
of the friendly relations that had lasted through the
last 20 centuries.
The Palestinians, through sales of their land to
[40]
Tragically, the state of Israel seems to have learnt

more from its persecutors than its benefactors in the
calculated precision of its targeting and killing. But
the problem is not just the most recent round of the
war in Gaza. The deeper problem is that Israel has
made impossible any viable statehood for the
Palestinians.
There is little doubt that both the Palestine
Liberation Organization (PLO) and Hamas have
contributed to the Palestinian predicament. The PLO
wrote off East Jerusalem in the Oslo Agreement in
1993 and compromised on the right to return of
Palestinians in return for its recognition as the official
Palestinian authority. The Oslo peace process itself
enabled the rise of Hamas, since the PLO had lost
legitimacy with many Palestinians. For the West,
Hamas was an effective counterbalance to the PLO.
Since then Hamas own violent politics has gone
hand in hand with Israels metamorphosis into an
expansionist, settler state.
The old secular left that had dominated Israeli
politics has been marginalised. A new wave of
religious nationalism holds sway, some sections of
which advocate a Greater Israel and would like to
annex the West Bank as the Biblical Judea and
Samaria. There are suggestions that paying
Palestinians to emigrate would be less expensive
than the costs of maintaining the two-state solution.
Stand in India
What then should be our stand in India? Though

India has become hugely dependent on Israel for
small arms and India-Israel relations have
strengthened, it must stand for peace and justice in
Palestine if it aspires for leadership in global politics.
Fortunately the official Indian statement at a special
session of the UN Human Rights Council criticised
the heavy airstrikes in Gaza, the human rights
situation in the Occupied Palestine Territory
including East Jerusalem and emphasised the need
for a sovereign, independent, viable and united State

of Palestine. Citizens all over the world must press
for stronger action in favour of Palestinian statehood
including the resort to economic boycott of Israel if

required. The solution to Hamas lies in a sustainable
Palestine and not in death in Gaza.
Source: The Hindu
NEITHER VICTIMS NOR PERPETRATORS

violence can be broken, the report argues, provided
the lid of silence and denial is lifted. In particular,
it points to the success of several interventions aimed
at strengthening the child-rearing skills of parents
and caregivers. Techniques of non-violent discipline
to promote positive interaction between parents and
children and sharing knowledge about early child
development are some of the other proven strategies.
Openness to imbibe novel approaches that are more
in tune with modern-day life would enable
communities to find parenting a joyful experience.
To be sure, time-tested and humane practices have
an important role in child development and are
critical to the transmission of cultural values down
generations. The emotional scars are the most
damaging, but not to be wished away are the
astronomical economic burdens, as well as
irreversible health effects, of violence against
children. UNICEF refers to a study in East Asia and
the Pacific, which estimated the cost of maltreatment
in a single year at $150-160 billion, or 2 per cent of
that regions Gross Domestic Product. Another
study, in the United States, found the cost over a
life-time of confirmed maltreatment in just a single
year to be about $124 billion. Children deserve a
better deal; and it is the adults who can make the
difference.
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Todays victims are tomorrows perpetrators; but

this state of affairs is not inevitable. That is the
burden of the 2014 UNICEF report, titled Hidden
in Plain Sight. It says the physical, sexual and
emotional abuse of children is so pervasive because
there is a high level of acceptance around these
habitual behaviours. Also, there is that level of
acceptance only because such violence in fact takes
place in settings where boys and girls should
normally feel safe. This scenario is evidently most
unfortunate, but perhaps not quite surprising. A 2013
report by the World Health Organization, the
London School of Hygiene and Tropical Medicine
and the South African Medical Research Council
estimated that globally, intimate partners were
behind 38 per cent of incidents of murder of women.
Data from 190 countries sourced by the UNICEF
study shows that violent discipline is the most
common practice. Six out of ten children in the 2-14
age group are subjected to physical punishment by
caregivers. Nearly one out of three adolescents has
either bullied their peers or have themselves
experienced the humiliation. Nearly a quarter of all
girls in the 15-19 age group report physical violence
and one in ten girls under 20 years are subjected to
forced sexual acts. As it is often the case, the report
cautions that victims of extreme violence in their
early years, end up as perpetrators themselves.
Source: The Hindu
Yet, there is growing evidence that this cycle of
HEED THE BORDER WARNING BELLS
The present political crisis in Pakistan poses a

challenge to the Indian establishment. A large
number of analysts believe India should do nothing.
Not because India can do little, but because it is in
Indias interest to have the Pakistani army
popularly referred to as the establishment in
direct control. Such thinking reflects either
intellectual laziness or a refusal to learn from history,
or both.
governments have attempted to normalise trading

relations with India, but have been stymied by the
establishment.
The basic premise that it is not for India to decide

who rules Pakistan cannot be doubted. A ruler firmly
in the saddle should normally suit international
interlocutors since that would allow for serious
negotiations. Successive civilian Pakistani
But in this case we should ask ourselves whether

it is in Indias interest that the Pakistani army is not
only in command but is seen to be so. However, to
say that it is only when the army directly rules
Similarly, former president Asif Ali Zardaris first

reaction to the horrendous attack on Mumbai
(November 2008) was to say that he was sending
the DG-ISI over; this sounded hollow as the army
was not amused. Hence the yearning for a system
that can deliver is understandable.
[41]
Pakistan that relations with India will be stable and

desirable is ahistorical and reflects woolly-headed
thinking.
What matters to India

While it is not for India to preach to the
Pakistanis who should rule them, how they are ruled
can become relevant if the way Pakistan is ruled
works against Indias interests. What then is in
Indias interests?
The Pakistani army, led by its dictator Zia-ul

Haq, then went on to support the Khalistani
terrorists. The decade-and-a-half of violence led to
tens of thousands of innocents deaths, an Indian
Prime Minister was assassinated, and communal
harmony was disturbed. Under Benazir Bhutto, the
Pakistani army promoted terrorism and secession in
Kashmir, leading to large-scale deaths and
destruction of the Kashmiri way of life.
Subsequently, it sponsored terrorist actions in
Mumbai (1993, 2008), Hyderabad, Varanasi, Pune,
New Delhi and other places.. It is, therefore,
completely wrong to argue that direct army rule in
Pakistan is in Indias interests.
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A stable neighbourhood where nations can be

trusted not to interfere in each others internal affairs
would top the list. A conducive environment in
which mutual differences and disputes are solved
through dialogue and understanding. For that,
neighbours should be comfortable in their skins,
defining themselves in terms of where each society
and state looks at finding itself in the medium- to
long-term.
army, aided by Bhutto, refused to hand over power

to the Awami League even after it had won a majority
in the only free and fair elections held to the national
parliament in 1970. The resultant crackdown and
massacres led to over 10 million refuges fleeing
Pakistan, leading ultimately to the December 1971
war and to the creation of Bangladesh.
Attaining such goals would need cooperation,

which should be mutually-beneficial and mutuallyreinforcing, not transactional. But if a country defines
itself as not being the other, and its leaderships
greatest fear is that some day its people will see
through the pretence, then trouble cannot be far
away.
Early in its days of being a country separate from

India, the Pakistani establishment realised that
tensions with India were sine quo non for the
continued existence of the country, more so since a
large number of Muslims in whose name Pakistan
was created had no desire to move to it. Hence they
launched the so-called tribal invasion of Jammu &
Kashmir despite a standstill agreement signed
precisely to prevent attempts to change the status
quo.
The armys strong arm
Slowly, due to the artificial nature of the country

created, the political system failed to stabilise,
leaving open the door for the army to first put its
boot inside the political door and then take over the
system. (People seem to forget that as early as 1951,
Ayub Khan as the serving army chief became the
defence minister.) The army realised early on that
tensions with India would enable it to control a
disproportionate share of the national cake. The rest
is history.
Since then, the army has directly or indirectly
run the country, particularly its policies on India,
Afghanistan, the US and the nuclear programme
(since Zulfikar Ali Bhutto was overthrown). The
[42]
Short-term outlook
As Christine Fair has shown in her book, Fighting

to the End: The Pakistan Armys Way of War, the
Pakistani army defines success in a very narrow
manner it lives to fight another day. This is
because it has completely hijacked the national
narrative and does not tolerate any civilian regimes
intruding on its domain.
Though Nawaz Sharif started out as a creation
of the army, he later tried to chart an independent
course emphasising economic growth, which would
imply improved relations with India. This the army
was determined to prevent; its Kargil misadventure
sabotaged Sharifs reaching out to India at Lahore,
or extending normal trade relations.
Further it has not taken kindly to Sharifs attempt
to support journalists and television channels
targeted by the ISI, nor his refusal to allow Pervez
Musharraf to escape prosecution. The same people
who would prefer the Pakistani army to its civilian
elected executive are critical of Sharif for attempting
to put the army in its place.
Promoting democracy la George Bush is one
extreme, total cynicism that is indifferent to any
principles is the other. Both lead to disaster. If India
can do nothing about stabilising a democratic regime
in Pakistan, it should avoid legitimising and giving
credibility to the Pakistani armys insatiable and
illegitimate thirst for power.
Source: BusinessLine
REWRITING GDP: THE NATURAL WAY

to our countrys economy, but the problem is
reluctance at the level of financial planners and
economists to actually use the numbers to the
advantage of re-writing the GDP as well as use the
resource more intelligently to boost the local and
national economy.
The first one speaks about how drug dealers,

prostitutes are set to give Britain a 10 billion boost
to its accounts, while the later was on how Spain
was doing the same to reshape and resize the
numbers.
When I am suggesting this, I am fully aware of

the sentiments of staunch believers in conservation
action who advocate that ecosystems and
biodiversity cannot be always valued using dollar
values and they have more non-use value.
If one argues that the attempts made by England,

Spain and a host of European countries is a step in
the right direction, which considers sectors other
than the traditional ones to calculate the GDP, the
need for India to consider its rich biodiversity and
ecosystems and their contributions to national
economy is much more significant.
While I am in complete agreement with this

sentiment, it is also important that we need to focus
on development that does not compromise
conservation benefits.
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A series of articles that appeared on the front

pages of The Financial Times (May 30) and
International New York Times (July 10) caught my
attention recently. Both articles talk about how
countries are trying to rewrite their gross domestic
product (GDP).
Lets refer to an article written by Bill Gates, cochairman of the Bill & Melinda Gates Foundation,
in 2013 on the inherent problems of measuring
growth in developing economies and how it creates
problems for international aid.
He argues that countries, including the
developed ones, have underestimated growth using
traditional GDP calculations.
He cites that, for example, Ghanas GDP jumped

by 60 per cent when it included growth in just one
sector the progress in cell phone sector in
measuring the national economics.
It is not just Ghana where the GDP numbers are
being re-written but countries such as Estonia,
Austria, Slovenia, Finland, Sweden, Norway and
Italy have all included uncommon sectors while
calculating the GDP.
The US joined this group in expanding the
definition of investment to add 3.6 per cent to its
GDP in 2012, according to a report in Financial Times.
For long the contributions of nature and

ecosystems, including biodiversity, has been a
subject of intense intellectual debate, mostly at
workshops and seminars convened by
conservationists and environmental economists.
The Net Present Value (NPV) of Indias forests

is estimated to be anywhere between Rs.9.87 lakh to
Rs.55.55 lakh per hectare, according to the Indian
Institute of Forest Management, Bhopal. The value
of mangroves is estimate to be about $1,287 per
hectare.
The annual total economic value (TEV) of forests
in Himachal Pradesh is more than Rs.1 lakh crore.
Similarly, the forests of Uttarakhand are estimated
to provide Rs.1.6 lakh crores annually through
ecosystem services such as providing water,
retaining soil and others.
Pollination and seed dispersal support provided
by insects, birds and other life forms is estimated to
be anywhere between Rs.6,879 lakh per year per
hectare to Rs.12,054 lakh per year per hectare. The
total value of Indias forests is worth 7 per cent of
the GDP.
Globally, not just in India, the ministries of
environment are seen as speed breakers in the
development process.
This reputation is due to the fact the issues
related to managing environment are not properly
articulated and assessed for development planning.
Rational decisions
Forests and their value
The language used in the debates is too complex

for several people to understand when it comes to
reasoning on the need to fix some speed governors
in the development engines.
India has significant amount of information on

how we need to calculate the dollar value of
contribution of ecosystems and biological resources
One has to understand that this is a mechanism

to save the driver, the carriage and the public and
not to stop the run.
[43]
Investing in rational decisions related to

development is the key. If ensuring the numbers
game in economic planning and national accounting
is properly played, then conservationists need not
convince planning and investment ministries to the
importance of safe keeping the golden goose than
to kill it now because we are getting a few golden
eggs.
Investing in future
What we now need is a full-fledged

communication strategy to reach out to people on
the ground as well as to those writing the
development and economic history that after all
investing in the future is not bad and that we need
to count the numbers carefully so that our actions
do not lead to situations we need to be on the
defensive to our national interests all the time.
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India, in spite of repeated directives and intent

to use ecological and environmental audits and
performance reviews, ranging from the CAG
directive on the issues in 2011 to the adoption of
Green National Accounts Framework in 2013, is yet
to reach a critical stage, that is visible, where the
perception of policymakers is not to ensure minimal
hearing to issues related to managing environment
and ecosystems sustainably.
Green Accounting is not enough. We need action

on the ground to demonstrate that the potential of
biodiversity and ecosystems are worth their longterm protection.
Merely publishing a series of option papers on
Given its potential to transform local and national

economies, if managed well, biodiversity and
ecosystems in India could be the next big innovative
option for India to develop socially, economically
and environmentally using principles of sustainable
development.
A NEW ENGAGEMENT
By signing an agreement to supply uranium for

our civil nuclear energy programme, Australia has
clearly signalled its readiness to put the issues of
the past triggered by Indias nuclear test in 1998
firmly behind it in order to broaden and deepen
economic ties with India. It has also cleared the decks
for a new strategic partnership between the two
countries. Although Australias strategic focus on
India is part of a larger, US-led attempt to develop
a strategic counterweight to Chinas rising economic
and military power, as well as its growing
assertiveness in the Asian region, it does indicate
the possibility of a new regional equation emerging.
Coming as it does on top of the significant progress
on talks with Japan on a civil nuclear co-operation
agreement, the deal paves the way for India to
significantly add to the share of nuclear power in its
energy mix.
In the short- to medium-term, India cannot
ignore nuclear power. Its current per capita
consumption of energy at 949 kilowatt-hours
(kwh) is less than one-fourth Chinas current per
capita consumption level of 4,000 kwh. Although
India has a current installed generating capacity of
249 gigawatt, actual generation has been averaging
only 135 gigawatt. This has been due to a number of
supply-side constraints, including the severe
shortage of coal and natural gas for thermal plants,
and the inability of hydel power to deliver during
peak demand. Even reaching half of Chinas current
[44]
power consumption level over the next 20 years

would involve more than doubling the present
capacity and more than tripling actual generation.
Given the logjam over coal mining, this does not
appear feasible.
That said, the Governments target of generating
63 gigawatt from nuclear sources by 2032 appears
equally unfeasible. While the Government has
shown commendable initiative in pursuing both
nuclear technology and fuel after the 1-2-3 agreement
with the US whose strategic value has only been
underscored by the Australian deal and the progress
made with Japan it has failed to move with
anything like that speed or purpose at home. With
post-Fukushima opposition rising to nuclear plants
in the sites shortlisted by the Government, it has its
work cut out to build political as well as popular
consensus on nuclear power. Political and strategic
exigencies have also forced an unprecedented
technology mix India has its domestic fast breeder
reactor programme, light water reactors from the
West and heavy water reactors from Russia. This
has created a regulatory nightmare and raised a
question mark over the availability of adequate
technical expertise and bandwidth for supervision.
All this underscores the need for India to seriously
pursue its renewable energy options, especially in
exploiting its most abundant and freely available
energy resource solar power.
STOP SKIRTING FERTILIZER REFORM

The Prime Minister unveiled a five-point agenda
for ushering in a technology-led second green
revolution in India. One of these is the issuing of a
soil health card (SHC) to every farmer, with
recommendations for fertiliser use.
But will this help address the persisting
imbalance in fertiliser use?
Since 2013, the Government has been fixing

reasonable MRPs and manufacturers who charge
more are penalised by being denied subsidy for the
differential amount or the concerned product being
excluded from NBS.
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Though the Economic Survey recognised the

seriousness of the problem, the Budget was silent
on any policy steps to address it.
From April 1, 2010, these fertilisers were brought

under the nutrient-based scheme (NBS). Under NBS,
the Government gives uniform subsidy to all
manufacturers, expressed as Rs. per unit nutrient
N, P, K and sulphur (S). Initially, producers were
given freedom to fix the MRP but subsequent actions
severely undermined this.
To get maximum crop yield from fertiliser use

and maintain soil health, a farmer needs to apply all
three major nutrients, namely nitrogen (N),
phosphate (P) and potash (K) in the right mix.
As a rule of thumb, agronomists recommend use

ratio of 4:2:1. Ideally, it has to be customised to soil
and crop specific situations. Unfortunately,
government policies, which make P and K fertilisers
dia-ammonium phosphate (DAP), muriate of
potash (MOP), single super phosphate (SSP) and
others very expensive and urea the main source
of N artificially cheap , have led farmers to use
an excess of N and less of P and K. This led to
increasing imbalance and the ratio at one point had
deteriorated to 8.5:3.1:1 (1998-99). It remains heavily
imbalanced at 8.2:3.2:1 (2012-13).
The pricing policy
The fertilisers policy revolves around the twin

principles of controlling maximum retail price (MRP)
at a low level and assuring producers a retention
price (RP) which is higher. The difference is
reimbursed as subsidy. Initially, all fertilisers (urea,
DAP/complex and SSP ) were covered under a
uniform policy dispensation of retention price
scheme (RPS).
In 1991, faced with an economic crisis, India

approached the IMF/World Bank who insisted on
elimination of fertiliser subsidy within three years
as a precondition for extending financial support.
To comply with this, on August 25, 1992, the
Government decontrolled DAP/complex fertilisers
and SSP and abolished subsidy.
However, within five weeks, subsidy was
resurrected as ad-hoc concession. Controls on MRP
too were revived, although indirectly. To begin with,
States exercised control, after which the baton passed
on to the Central Government.
The holy anomaly
At the other extreme, urea is treated as a holy

cow. The policy governing it has remained unaltered
since 1992, thus creating a serious anomaly vis--vis
decontrolled P and K fertilisers. Although a
recommendation was made in 2012 to bring it under
NBS and a committee asked to work out the
modalities, nothing has come of it to date.
Continued dithering over reforms in urea on the
one hand and drastic reduction in subsidy on P and
K fertilisers on the other has produced a deadly
cocktail. This has spiked the prices of P and K
fertilisers three-four times since 2010 even as the
MRP of urea increased by a meagre 10 per cent.
Currently, DAP sells at Rs.22,500 a tonne four
times the urea price of Rs.5360 a tonne.
The Government should act before things slip
further out of control. Prime Minister Narendra Modi
has talked of giving a bitter pill now to enableachchhe
din later. He should implement NBS for urea
without delay.
The June 26, 2013 memorandum fixing
reasonable MRPs should be withdrawn. It is
anathema to pricing freedom which must be
preserved for the scheme to deliver best results.
Needless to say, such controls should be avoided
while implementing a similar scheme for urea.
While the fertiliser industry has been pitching
for these reforms for over three years, farmers need
to be goaded to accept the bitter pill in the hope of
long-term benefits by reducing imbalance in fertiliser
use, increasing crop yield, improving soil health and
putting less load on the environment as nutrients
are better utilised by plants.
[45]
IS CORPORATE TAX HIGH IN INDIA?

The global tax landscape has witnessed dramatic
changes in the recent past and it is likely that this
trend will continue in the foreseeable future.
For instance, Indias corporate tax rate of 33.99

per cent is comparable with Brazils 34 per cent.
South Africa, at 28 per cent, stands in the middle.
On the contrary, Russias tax rate of 20 per cent
and Chinas tax rate of 25 per cent score more
brownie points being much lower rates in
comparison to India.
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The reasons could be varied economic

challenges putting increased pressure on the revenue
authorities to collect taxes; global companies coming
under public scrutiny especially in developed
countries; complexities arising from new business
models such as e-commerce and cloud computing;
and so on.
considerably on different economic parameters

including their tax rates.
On the corporate tax front, tax rates in many

countries have stabilised after a decade of decline,
while indirect tax rates and their ambit have
increased globally.
On the higher side
Interestingly, corporate tax rates in different

countries vary considerably.
Each country fixes a particular tax rate depending

upon various factors including a mix of historical
baggage it carries, the current state of economy like
the extent of the role played by the government as
a welfare state, funds required for socio-economic
development, rates fixed by other countries who
compete for similar capital resources, level of tax
compliance, etc.
Currently, Indian corporate tax rate for a
domestic company stands at 33.99 per cent (where
net income exceeds Rs.10 crore). Though not the
highest, this is still among one of the higher tax
rates when compared globally.
The countries that fall in similar higher corporate
tax bracket include France at 33.33 per cent, Belgium
(33.99 per cent), Venezuela (34 per cent), Argentina
and Zambia (35 per cent), Japan (35.64 per cent) and
the US at 40 per cent.
All these economies vary considerably in terms

of their economic strength and business
competitiveness, however, they all fall in the higher
corporate tax rate category both on standalone basis
and also in comparison with their peer nations.
A look at some of the comparable Asia-Pacific

countries again paints a varied picture.
Corporate tax in Australia and Philippines stands
30 per cent. And this looks much higher in
comparison with China, Malaysia and Indonesia at
25 per cent.
Corporate tax rates in Hong Kong and Singapore
at 16.5 per cent and 17 per cent, respectively
definitely stand out and look very attractive on a
standalone basis.
Both Hong Kong and Singapore have been
considered favourable business destinations for
multiple economic reasons, with lower tax rates
contributing significantly to this advantageous
position.
Similar to the Brics and Asia-Pacific region, a
comparison of the developed economies also shows
wide differences in the tax rates.
For instance, the corporate tax rate in UK at 21
per cent (20 per cent from April 2015) is almost half
in comparison with tax rate in the US at 40 per cent.
Canada at 26.5 per cent, Germany at 29.58 per cent,
Italy at 31.4 per cent, and Japan at 35.64 per cent
stand in between.
Interestingly, few of the countries stand out in
the global comparison with very low corporate tax
rates. Switzerland at 17.92 per cent, Taiwan (17 per
cent), Kuwait (15 per cent), Ireland (12.5 per cent),
Bulgaria and Qatar at 10 per cent appear to be very
attractive tax rates.
However, not all these economies are comparable
among themselves or even with India.
Bloc by bloc
A comparison of the Brics (Brazil, Russia, India,

China and South Africa) bloc paints an interesting
scenario where the corporate tax rate varies in the
range of 20 per cent to 35 per cent, strengthening
the view that though these countries are generally
clubbed together under the Brics acronym, they vary
[46]
Lower the better
It is a fact that a standalone comparison of the

corporate tax rate would not yield the true picture
about the effectiveness or attractiveness of a
particular country as a business destination.
Many other important factors such as actual

effective tax rate, economic incentives, the certainty
and stability of the tax regime, rigour and rigidity
of tax authorities, dispute resolution mechanisms
and so on play an important role in determining the
attractiveness of a particular economy.
Besides, many overriding considerations, such
as safety and security of business assets and human
workforce play an overarching role in any long-term
business decision.
To begin with the education cess and surcharge

may be removed, that would bring down the tax
rate to 30 per cent. Gradually, over a period of say
5 years or so, the corporate tax rate could be reduced
in a step down manner to 25 per cent.
Lower tax rates would encourage companies to
consider India as an important business hub and
this would be in conformity with Prime Minister
Narendra Modis call to companies to Make in
India!
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Nevertheless, a higher tax rate makes cost of

doing business in India significantly high. To make
India an attractive business destination, it should

consider reviewing and lowering the tax rates.
Source:BusinessLine
JUDGES AS GOVERNORS
The political sparring over the appointment of

former Chief Justice of India P Sathasivam as Kerala
Governor is of far less importance than the larger
issue namely, whether it was appropriate for
someone in his position to accept a gubernatorial
sinecure. Also, what do such appointments mean
for judicial independence? Unfortunately, these
important questions have been clouded by political
charges and counter-charges. For example, there has
been the nasty and unsubstantiated insinuation that
the appointment was a quid pro quo for judgments
delivered. And the embarrassing but somewhat
irrelevant charge that a senior minister in the Union
Cabinet had publicly declared he was of the view
that judges should be ineligible for appointment by
government to post-retirement jobs. The
Governments defence that Congress-ruled
governments have also placed members of the higher
judiciary to gubernatorial office is a retort that
only skirts the larger issues relating to his
appointment.
A few things need to be got out of the away to
begin with. First, no procedural rules no, not even
norms were breached in appointing Justice
Sathasivam as Governor. Second, although this is
the first time that a former CJI has been appointed
Governor, consistency demands that anyone who
argues that it will compromise the independence of
the judiciary, in public perception if not in fact, must
object to the many appointments of members of the
higher judiciary to gubernatorial office. Yes, it is true
that nobody had imagined that a former CJI would
accept being a governor, but Sathasivams
appointment draws attention to a larger problem

the urgent need for norms to govern post-retirement
appointments for members of the higher judiciary.
Theoretically, the prospect of a post-retirement
job has the potential to influence the pre-retirement
conduct of a judge. A total ban on retired members
of the higher judiciary taking up other assignments
is unpractical. We have retired judges appointed to
tribunals and commissions of inquiry; moreover, a
statutory body such as the Press Council of India
has by convention been chaired by a sitting or retired
Supreme Court judge. But there is a difference
between calling upon retired judges to perform
quasi-judicial functions where there is room for
independence in decision-making and appointing
them as governors. A governor, despite being the
constitutional head of a State, is an employee and
agent of the Centre. Indias democracy is predicated
on an arms length relationship maintained between
the Government and the judiciary. This distance is
impossible to maintain in an environment in which
judges are appointed in what are broadly political
capacities whether as governor, minister, or mere
MP. The Election Commission has gone so far as to
suggest that there be a cooling off period for all
bureaucrats before they even enter party politics.
One may quibble about whether this is too stringent
and constrictive, but the principle behind the
suggestion is hard to contest. We need some rules
or norms that insulate the bureaucracy and the
judiciary from the temptation of certain kinds of
post-retirement benefits.
[47]
THE BUSINESS OF CLIMATE CHANGE

Paris 2015 is the buzzword among the global
climate change community today, when the
countries would negotiate a long-term agreement
on climate change.
First, access to international climate finance is

the most critical element. Lets be clear. Indian
corporates have demonstrated their pro-active
approach to mitigation. However, direct investment
in climate mitigation on a large economy wide-level
is not going to happen easily unless the cost of
mitigation is internalised.
It needs to be front loaded with climate finance
which will help meet the incremental economic costs
of mitigation, enable mainstreaming of climate
mitigation and adaptation among the small and
medium enterprises, and fund collaborative research
and development in low-carbon technology.
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The road to Paris is also dotted with two events

this year the UN Secretary Generals Climate
Summit in New York in September, and the 20th
Conference of Parties to the UN climate change
conference in December. Both aim to rouse the
interest and ambition of the global community to
strike a successful long-term deal a deal that will
have ambitious goals beyond 2020.
global level.
So, what is the deal for business and industry?

Many say the negotiations are about the politics of
climate change, less about the economics of it.
Whatever the outcome of negotiations, there will be
an impact on businesses.
The impact could be an opportunity or a risk.
Second, new market mechanisms would have to

be devised for the whole business of climate
mitigation to be market-driven.
Indian business and industry, with its proactive

attitude to embracing newer opportunities, has not
shied away from the opportunity.
Third, there is no point of talking about a carbon

tax or a price on carbon. Adding a tax burden will
be detrimental to something that can otherwise have
a wide-ranging response through positive incentives.
Can we instead talk of a price for reducing carbon
emissions?
The carbon market presented an opportunity for

new businesses to emerge that dealt with advising,
consulting and verifying the generation of carbon
credits. And most importantly, helping industry to
build a momentum on climate mitigation projects.
Indian corporates need not pay a price on carbon

but a price for carbon. Fourth, a mechanism for
technology availability and viability needs to be
brought in by the UN Framework Convention on
Climate Change (UNFCCC).
Hence, the business response to the climate

change opportunity was not found wanting in the
Indian context. More than 2,500 projects in 7 years
from 1600 companies under the Clean Development
Mechanism (CDM) is not a small number given a
small timeframe.
Fifth, it is critical that trade flows should not be

impacted by any measure in the garb of climate
change action that is unilateral in nature.
New opportunities
There are projects ranging in thousands that

directly or indirectly mitigate climate change; these
have arisen under various domestic schemes,
legislations and initiatives.
Whether it is the energy efficiency scheme,

national solar mission, urban renewal mission, many
other projects under renewable energy, green
buildings, transportation, forestry, the list is quite a
long one.
Any imposition by countries on embodied carbon

in goods that cross borders would have a major
adverse impact on trade. No border taxes should
be the outlook. Standards or norms developed by
different countries or an international institution
should be used for enhancing the competitiveness
in the market, not for potential unilateral measures.
Industry should be aware of standards being
pushed to achieve a singular goal of discriminatory
market access and guard itself against such
standards.
Key elements
Climate action cannot be at the cost of

competitiveness, these two should only be mutually
reinforcing.
Six key elements that will provide industry the

impetus for climate change mitigation through the
international regime, need to be taken up at the
Last, a high level panel under the UNFCCC

recommended setting up of a stabilisation fund for
carbon credits generated and not sold. This can
[48]
revive the confidence of companies at a time when

there is virtually no carbon market.
There should be a fund with a sunset clause to
clear returns on investment made in carbon
emissions reduction projects, projects that yielded
carbon credits but did not find any takers.
Enabling environment
Four, facilitate the creation of a voluntary

domestic market. With the global carbon market
outlook being weak, a voluntary carbon market in
India could give the much needed fillip for GHG
mitigation initiatives to gather a new momentum.
A domestic emissions trading scheme of a
voluntary nature should be espoused. Business and
industry can work with the government in building
the thought process, design, architecture, and
operationalisation of such a mechanism for India.
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While these elements will be critical to what the

global dialogue yields, the government and industry
work towards building an enabling environment at
home to scale up efforts at the domestic level.
Three, mainstream climate change concerns and

actions across all spheres of policymaking. Climate
change has to be accorded priority at the top level
in government and in business.
There is a clear set of domestic interventions that

can provide the impetus for action to mitigate and
adapt to climate change impacts.
Indian business and industry need five key touch

points domestically to embark on ambitious
mitigation and adaptation initiatives.
One, an access mechanism for the National Clean

Energy Fund to provide funding for incremental cost
of low carbon technology adoption, by way of a
viability gap funding.
Two, create the necessary regulatory
environment for long-term funds to step into the
climate change mitigation and adaptation space.
We need to create an investment climate that

will attract pension and insurance funds to tap this
market in India.
Last, create an enabling environment for

renewable energy technologies and renewable
power. We need the ecosystem for building a strong
domestic supply chain for such technologies, create
sustainable demand for such technologies and for
renewable power.
The global delivery of what business needs
coupled with a domestic ecosystem will act as strong
catalysts for a scaled up response from business
towards climate change mitigation and adaptation.
It is time the voice of Indian business reaches out
and exhorts the global community towards a
practical outcome.
EVERY DROP OF TREATED WATER COUNTS
The situation could worsen across regions, with

variations in distribution of rainfall, proximity to
river basins and ground water table levels. Many
states may reach water stress state (1700 m3/yr) by
2020 and water scarce state (1000 m3/yr) by 2025.
Hence, there is a need for optimum management of
existing water resources.
solutions like desalination projects, industrial and

municipal water recycling can be explored. The need
to explore supply solutions is critical for industrial
users, whose needs are met after meeting the
requirements for drinking, irrigation and hydro
power, in that order. For industrial users, certainty
of supply is more important than water cost, as it
consists of 0.2-1 per cent of total cost. Hence,
technology-intensive options should be explored to
cater to industrial demand. In water stressed states
like Tamil Nadu, bulk water rates are already about
INR 60/kl while water cost from a typical
desalination plant would be in range of INR 50/kl.
Alternative options
Making it work
The National Commission on Integrated Water

Development Plan suggests that the efficiency of
surface water irrigation systems can improve from
35-40 per cent to around 60 per cent. For industrial
and domestic users, more technology intensive
Desalination projects are primarily in the states

of Tamil Nadu, Kerala and Gujarat, the majority
being captive. In terms of waste water recycling,
about 50 per cent of industrial sewage water
generated goes untreated.
Some stark facts: India has 18 per cent of worlds

population with only 4 per cent of total usable water
resources. Annual per capita availability of water
has declined by 15 per cent in the past 10 years and
is estimated to fall to as low as 1140 m3/year by
2050.
[49]
In brownfield developments, where long term

demand for technology intensive solutions like
desalination/recycling units is visible, but existing
users are already being supplied water from various
sources (rivers/ground water etc), there is a need
for switching off such sources and reprioritising
them for domestic/irrigation use.
However, the implementation of such guidelines

rests with several agencies. For instance, the National
Water Mission calls for overall efficiency
improvement of 20 per cent in water use through
various non-conventional methods. It states
industries consuming significant water should focus
on recycling; however, the percentage of water to
be recycled is not mentioned. The responsibility of
setting up such standards rests with Ministry of
Environment & Forest (MoEF) and execution with
state governments.
Prioritisation of desal/recycled water for

industries and contractual flexibility to use earlier
water sources as a variable quantity to meet
additional demand (which cannot be met through
the desal/recycling projects) need to be clearly
established.
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The key reason for this is the lack of a holistic

framework for coordination and policy making
across agencies. Under the Constitution, Water is a
State subject with Central Government involvement
limited to formulating guidelines like National Water
Policy and managing inter-state distribution
conflicts.
Many states have come up with water policy

documents. However, the focus of such policies is
on prioritisation, tariff setting, penalty and licensing
and there is limited focus on putting together a
framework to boost waste water treatment/ reuse,
sea water desalination and water conservation.
There is also a need to enhance private
participation in technology intensive methods of
alternative sources like desalination, water treatment
and recycling units. However, there is also a need
to ensure that risks are adequately managed among
private and public entities from a project finance
perspective.
For projects to succeed, two key aspects need to
be addressed: Re-prioritisation of alternate supply
sources and pricing mechanism.
Pricing mechanism
Though industrial users may be willing to pay

higher water tariffs for technology intensive supply
solutions, there would still be a need to put in place
measures make tariffs acceptable. Commercial
blending of tariff is a possible option, especially in
dedicated industrial/economic corridors with
multiple suppliers. In such regions, rather than
having differential pricing for technology intensive
solutions and conventional sources, a blended tariff
across board would help incentivise use of
technology intensive sources.
Again, to make above solutions actually
implementable there is a need for developing an
integrated approach,.
Resolution of such aspects would go a long way
in development of alternate water supply solutions
and aid the bridging of the water demand supply
gap.
Source: Business Line
GROWTH AND INVESTMENT: THE INTERLINKS
A review of Indias saving and investment

behaviour over the last decade provides some
interesting insights on the growth performance over
this period.
Growth performance falls into two distinct
periods, marked by high growth over the first eightyear period followed by a sudden and sharp decline
in the last two years.
Indias annual growth rate over the eight-year

period beginning 2004-05 was 8.2 per cent. The
average for the next two years was 4.6 per cent.
The difference in performance is even more

striking in relation to manufacturing. The average
annual growth rate in manufacturing in the first
[50]
eight years was a little over 9 per cent. In the last

two years, growth was negligible at an average rate
of 0.2 per cent (Table 1).
How much of this difference in growth
performance is explained by changes in the levels
of saving and investment?
Behviour of saving
Detailed data on saving are available only up to

2012-13. Domestic saving rate rose from 32.4 per cent
of GDP in 2004-05 to reach a peak of 36.8 per cent
in 2007-08 (Table 2).
Thereafter, it started declining and touched a low
of 30.1 per cent in 2012-13. During the later period,
there was a perceptible decline in the saving of the

public sector.
It fell from 5.0 per cent of GDP to 1.2 per cent.
Within public sector, saving of government
administration fell from 0.5 per cent in 2007-08 to (
) 1.9 per cent in 2012-13. This was a period marked
by high revenue deficit.
The saving of the private corporate sector fell
from 9.4 per cent to 7.1 per cent.
However, the private corporate sector investment

rate rose from 9.1 per cent in 2004-05 and reached a
peak of 14.3 per cent in 2007-08 and thereafter
declined sharply to 8.5 per cent in 2012-13.
Thus through the decade, public sector
investment rate and household sector investment
rate remained unchanged at a high level. It was only
the corporate sector investment which traced a path
similar to growth performance of rising sharply in
the first four years and thereafter declining slowly
but falling very steeply in 2012-13.
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However, the saving of the household sector

showed only a minor change declining from 22.4
per cent in 2007-08 to 21.9 per cent in 2012-13. But
the composition of household sector saving
underwent a big change.
rise throughout the period. In fact the peak was

reached in 2011-12 at 15.2 per cent. In 2012-13, it
stood at 14.1 per cent.
Saving in financial assets declined from 11.6 per

cent to 7.1 per cent while saving in physical assets
increased from 10.8 per cent to 14.8 per cent. Thus,
while in the first four years beginning 2004-05, the
saving rate rose sharply, subsequently it started
declining particularly because of a sharp decline in
public sector and corporate saving.
However, it needs to be borne in mind even after

such a decline the saving rate in 2012-13 was high.
If the investment is the driver of growth, saving
provide the wherewithal for the creation of
investment. That is why saving plays a crucial role
in the growth process particularly in a developing
economy.
Behaviour of investment
Gross capital formation which is the technical

term used for investment comprises of three
elements, Gross Fixed Capital Formation, Change in
Stocks and Valuables.
The gross capital formation rate after reaching a

peak of 38 per cent in 2007-08 declined to 34.7 per
cent in 2012-13 (Table 3).
The decline in investment rate during the period

is less than the decline in the saving rate because of
the rise in the current account deficit which amounts
to net inflow of resource from abroad.
Focusing our attention on gross fixed capital
formation rate, it rose from 28.7 per cent of GDP in
2004-05 to 32.9 per cent in 2007-08 and then declined
to 30.4 per cent in 2012-13.
The public sector gross fixed capital formation
rose from 6.9 per cent in 2004-05 to reach a peak of
8.0 per cent in 2007-08 and it stood at 7.8 per cent in
2012-13. This decline was negligible.
The household sector investment continued to

While the ratio of gross fixed capital formation

to GDP varied in a narrow range from 2007-08
onwards, the growth rate of fixed capital investment
in constant prices showed a sharp decline in the last
two years (Table 4).
Two things stand out from the analysis of
investment behaviour.
First, fixed investment rate by the corporate
sector which is most productive, declined sharply
in the latter period.
The decline from the peak was as high as 5.8 per
cent. Second, the decline in the overall gross fixed
investment rate was modest.
From the peak, it fell only by 2.5 per cent. In
2012-13, the rate stood at 30.4 per cent (While
detailed data are not available, the overall rate is
estimated to have declined further to 28.4 per cent
in 2013-14.)
The decline in the growth rate is much sharper
than the decline in the investment ratio which calls
for a different explanation for the growth slowdown
other than the fact of a decline in investment rate.
The way forward
The sharp decline in corporate investment rate

has attracted much attention. The decline has been
attributed to many factors.
The weakening of investment sentiment is traced
to certain policy decisions and more particularly to
the one relating to the retrospective application of
tax changes.
This particular decision has weighed heavily on
the corporate sector. Strong efforts are needed to
allay unnecessary fears.
Rebuilding confidence has to be an important
part of policy. A second reason attributed is the tight
monetary policy.
[51]
Given the high level of inflation, the monetary

authorities had little choice. It is overlooked that in
a period of declining ratio of household saving in
financial assets, higher fiscal deficit automatically
puts pressure on interest rate.
For example, an increase in capacity creation in

the power sector must be matched by appropriate
increases in investment in the coal sector. Inadequate
output out of investments could also be due to nonavailability of critical inputs.
As inflation comes down, the monetary

authorities may have greater room for relaxing.
Many power plants, for example, remain idle

because of the non-availability of gas. An early
completion of projects will also demand certain
policy decisions.
Issues relating to environment and land
acquisition have assumed greater urgency.
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A decline in the efficiency of the use of capital

is evident. With an investment rate of around 30
per cent of GDP and an incremental capital output
ratio of 4:1 which has been the observed ratio in the
recent past, the growth rate should have been around
7.5 per cent.
On the other hand, the actual growth rate turned
out to be below 5 per cent. Obviously, this implies
a steep rise in the incremental capital-output ratio.
This may be because projects have not been

completed in time or complementary investments
have not been made.
A delay in the completion of projects will mean

that output is not flowing even after significant
amount of investment has been made on a project.
The delay in the generation of output out of
investment made in one sector may also be caused
by the lack of adequate investment in related or
complementary sectors.
Obviously, we cannot ignore environmental

concerns but we need to work out a suitable
compromise between the compulsions of growth and
concerns for environment.
The fact that even today saving and investment
rates are at high levels despite having declined from
a much higher level reassures us that if we are able
to find ways to complete projects speedily, we shall
be able to usher in rapid growth in income even in
the short run. This should enable us to grow between
7 and 7.5 per cent in the short run.
However, only a return to higher levels of saving
and investment can take us back to the growth rate
of 9 per cent.
[52]
CHRONICLE
IAS ACADEMY
MOMENTUM
15TH SEPT, 2014 TO 21ST SEPT, 2014

Rajinder Nagar : 18/4, 2nd Floor (Opp. Aggarwal Sweets), Old Rajinder
Nagar, New Delhi-110 060.
Mukherjee Ngr : 706, 1st Floor, Mukherjee Nagar, Opp. Batra Cinema,
Delhi.
Call: 9953120676, 9582263947

CONTENTS
TOPICS
Pg. No.
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National ....................................................................................................................... 4-10

International ............................................................................................................. 11-14
India and the World ............................................................................................. 15-19
Economy ................................................................................................................... 20-20
Science & Technology ........................................................................................... 21-21
Health ........................................................................................................................ 22-23
News in Brief .......................................................................................................... 24-28
Editorial...
More than a quota ........................................................................................................ 30

Build it green ................................................................................................................ 31
Indias fast power ......................................................................................................... 32
Britain on the brink .................................................................................................... 33
On trial, the criminal justice system ......................................................................... 34

Changing Team State .................................................................................................. 35
Hindi-Chini 2.0 ............................................................................................................ 37
RBI, we have a problem ............................................................................................. 38
And the noes have it .................................................................................................... 39
State and utopia ............................................................................................................ 40
A virtual revolution..................................................................................................... 41
Scotlands tryst with destiny ..................................................................................... 42
[2]
Weekly Current Affairs 15th Sept. to 21st Sept., 2014
The biggest problem with labour laws ................................................................... 44

No need for a financial super-regulator .................................................................. 45
Mine it, use it, dont export it .................................................................................... 46
An aye for unity ........................................................................................................... 48
Time to put substance before style ........................................................................... 48
Focus on revival of units, not asset-stripping ......................................................... 50
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Disruption is needed after disasters ...................................................................... 51

Changing times ............................................................................................................ 54
Why archaic citizenship laws must go .................................................................... 55
Writing SAARCs incomplete chapter .................................................................... 56
Outreach plans for scientists ...................................................................................... 58
A vote to watch in Scotland ....................................................................................... 58
Towards an Asian century of prosperity ................................................................ 60
Federalism in judicial appointments ....................................................................... 62
Developing model village clusters ........................................................................... 63

For a victim-centric approach .................................................................................... 65
Neither warmongers nor wimps .............................................................................. 67
Crippling cost of disparities ....................................................................................... 69
The link between sanitation and schooling ............................................................ 69
Talking trade and peace with China ....................................................................... 71
[3]
NATIONAL
INDIAN UNIVERSITIES FAILS TO SECURE TOP RANKINGS
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nation, with 51 institutions, ahead of the UK

(29), Germany (13), the Netherlands (11),
Canada (10), Japan (10) and Australia (8).
The top-placed Indian institution, the Indian

Institute of Technology-Bombay (IIT-B) is
ranked 222nd in the world, followed by IITDelhi at 235th, IIT-Kanpur at 300th, IIT-Madras
at 322nd and IIT-Kharagpur at 324th position.
The number of Indian institutions in the
rankings has grown to 12 from 11.
The plight of higher education in India was

highlighted when not a single Indian university has
found a place in the top 200 global university
ranking list. The list was released by The
Quacquarelli Symonds (QS) World University
Rankings, regarded as the most rigorous of its type.
It has placed Massachusetts Institute of Technology
(MIT) at the topmost position for the third year.
Globally, students continue to use rankings as

one of their decision making tools to choose their
destinations for pursuing education. The prestige
associated with higher ranks also drives universities
to benchmark themselves globally. With the
increasing globalisation of higher education, Indian
universities need to compete to attract the best
intellectual students, as well as best qualified faculty
from across the world.
As represented by number of papers and reports

in the past, parameters where Indian universities
are weak in comparison to global peers are quantity
and quality of research. These have to be addressed
through reorientation of institutional priorities,
focused deployment of human and financial
resources, enhancement of global reputation and
prestige through academic excellence and national
higher education policy reforms.
Highlights of the Report

A total of 31 countries are represented in the
top 200 in which the US is the dominant
[4]
The other Indian educational institutions that

were given a rank lower than 400 on the list of
over 700 top universities are University of
Delhi, IIT-Roorkee, IIT-Guwahati, University of
Mumbai, University of Kolkata, Banaras Hindu
University, University of Pune.
Imperial and Cambridge have come as second
equal, behind only the MIT, while Harvard
dropped from second to fourth overall.It was
followed by Oxford and University College
London in joint fifth place, with Stanford,
Caltech, Princeton and Yale of the US filling
out the rest of the top 10.
The QS World University Rankings is an annual
league table ranking universities as a result of
performance in four key areas: research,
teaching, employability and internationalisation.
The National University of Singapore leads the
list as far as the Asian continent is concerned
and is ranked 22nd.
Global Well-Being Index
The Gallup-Healthways Global Well-Being Index

outlines thattwo out of every three Indians are either
financially struggling or suffering.The Well-Being
Index is a barometer of individual perceptions of wellbeing. It is based on data collected across 135 countries
in a year, with more than 1.33 lakh interviews. It
measures five elements of well-being which include;
purpose, social, financial, community and physical. It
seeks to understand the perception of citizens own
well-being at individual, social network,
organizational, city, state, country and global levels.
makes little difference to the purpose factor.

The proportion of Indians suffering in social
well-being is alarmingly high at 36 per cent.
More significantly, 46 per cent of Indians 45
and older were suffering in this element versus
31 per cent of those under 45. This suggests
that the older population is vulnerable to social
isolation.
Only 23 per cent of the Indians are thriving in
the physical well-being category.
Inconsistency in access to maternal healthcare,
especially in the impoverished rural areas, is
an ongoing health risk for many women.
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Among the five elements, purpose refers to

liking what a person does each day and being
motivated to achieve his/her goals. Social means
having supportive relationships and love in ones
life. Financial relates to managing the economic
life to reduce stress and increase security.
Community implies liking where the individual
lives, feeling safe, and having pride in the
community, and physical covers good health and
enough energy to get things done. Responses have
been classified as thriving - well-being that is strong
and consistent, struggling - i.e. well-being that is
moderate or inconsistent, or suffering- well-being
that is low and inconsistent.
Highlights of the Report
Only about one-fifth of Indians, or 21 per cent,

was financially thriving while 49 per cent were
struggling and 30 per cent suffering.
In terms of purpose well-being, 16 per cent

of Indians are thriving, indicating that a
majority of the population does not feel
fulfilled in its day-to-day life. Having a job
The survey advises Indian leaders to tap huge

opportunities to improve the well-being of a
large section of the population. There is a need
to promote job growth and infrastructure
development to adapt to rapid demographic
and social changes. Else, Indians well-being
will stagnate as large sections of the population
are unable to participate in the formal economy
and those at the bottom suffer.
CHAMAN: TECHNOLOGY FOR CROP MANAGEMENT
A new project has been launched by the

Agriculture Department which envisages the use of
geo-spatial applications for the assessment and
management of horticultural crops such as onion,
potato and mango.The project has been named as
CHAMAN
which stands for Coordinated
programme on Horticulture Assessment and
Management using geo informatics. The project will
be implemented at a cost of Rs. 13.38 crore for
duration of three years starting 2014 till 2017.
Project Info in Crux:
Fruits such as banana, mango, citrus and

vegetables such as potato, tomato, onion and
chilli will be covered under the project.
Under the project, the remote sensing

technology and sample survey techniques will
be used for production forecasting of major
horticultural crops in select districts.
Other components include geospatial

applications for horticultural development and
management planning which include site
suitability, post-harvest infrastructure, crop
intensification, GIS database creation, orchard
rejuvenation, aqua-horticulture
Detailed scientific field level studies will be

conducted for developing technology for crop
identification, yield modelling and disease
assessment.
What is Horticulture?
Horticulture is the science and art of producing,

improving, marketing, and using fruits, vegetables,
flowers, and ornamental plants. It differs from botany
and other plant sciences in the sense that horticulture
incorporates both science and aesthetics. Under it,
the cultivation of fruits, vegetables, nuts, seeds,
herbs, sprouts, mushrooms, algae, flowers,
seaweeds and non-food crops such as grass and
ornamental trees and plants are studied. Its other
focus areas include plant conservation, landscape
restoration, landscape and garden design,
construction,
and
maintenance,
and
arboriculture.Horticulturists work as gardeners,
growers, therapists, designers, and technical advisors
in the food and non-food sectors of horticulture. They
apply their knowledge, skills, and technologies used
to grow intensively produced plants for human food
and non-food uses and for personal or social needs.
National Horticulture Mission:
National Horticulture Mission was launched by

the Ministry of Agriculture, Government of India,
in 2005-06. It is a Centrally Sponsored Scheme to
promote holistic growth of the horticulture sector
through an area based regionally differentiated
strategies. The scheme has been subsumed as a part
of Mission for Integration Development of
Horticulture (MIDH) during 2014-15. At present,
India is the 2nd largest producer of fruits &
vegetables in the world.
[5]
KERALA TO BECOME DEMENTIA-FRIENDLY

A joint initiative has been launched by the Kerala
Government and Alzheimers and Related Disorders
Society of India (ARDSI). The initiative is aimed to
declare Kerala as the first dementia-friendly State
in the country. This will be the first such initiative
in South Asia. A dementia-friendly State would
mean a State where people with dementia can live
with dignity in a supportive community
environment, have access to diagnosis, information
and treatment, and, be able to reduce their discomfort
and disabilities. The government is also planning to
set up specialty clinics, 24-hour helplines and daycare centres.
What is Dementia?
dementia which accounts for 60 to 80 percent of

cases. It usually attacks people aged 65 and above.
An early onset is not rare. There are four million
people afflicted with dementia in India. The dementia
population in India is all set to double by 2030.
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The issue of dementia was highlighted in the

award-winning Malayalam movie, Thanmaathra. In
the movie, the actor was diagnosed with the
Alzheimers Disease, a neurological disorder that
triggers memory loss, progressive decline of
cognitive skills and language ability. The
sensetisation caused by the movie might have
resulted into the launching of such an initiative in
Kerala.
Dementia is a general term for a decline in mental

ability. It is severe enough to interfere with daily
life. The Dementia India Report defines dementia as
a syndrome usually chronic, characterised by a
progressive, global deterioration in intellect, including
memory, learning, orientation, language,
comprehension and judgment due to disease of the
brain. It is not a specific disease. It is an overall
term that describes a wide range of symptoms
associated with a decline in memory or other thinking
skills severe enough to reduce a persons ability to
perform everyday activities. Memory loss is an
example. Alzheimers is the most common type of
Symptoms
Memory loss (particularly of recent events),

depression, mood fluctuations, misplaced sexual
behaviour, anxiety and inability to communicate are
common in most forms of dementia. In the later stages,
memory loss is high, with the patient failing to
recognise family members, friends, objects and places.
RECONSTITUTION OF NBWL
After the apex court had stayed all the decisions

of the standing Committee relating to constitution
of National Board for Wildlife, the Ministry of
Environment and Forests has filed an affidavit in
the Supreme Court for the reconstitution of the
National Board for Wildlife (NBWL). In the affidavit
the government has retained the Gujarat Ecological
Education and Research (GEER) Foundation and
added four NGOs World Wildlife Fund for
Nature-India, New Delhi, Aranyak, Guwahati,
Nature Conservation Society, Jharkhand and the
Bombay Natural History Society, Mumbai,
Maharashtra.
The ten eminent conservationists are apart from

Prof. R. Sukumar, who was on the standing
committee of the Board appointed in July, as also
H.S. Singh, a retired Gujarat forest officer, V.B.
Sawarkar, former head of the Wildlife Institute of
India (WII) , S.S. Bisht, a retired IFS officer from
Bengal and former director, Project elephant, Dr. P.S.
Esa, a veterinarian with the Department of Wildlife,
Kerala Forest Research Institute (KFRI), P.R. Sinha,
[6]
who retired as Director of WII, Dr. R.J. Rao, Rector

of Jiwaji University, Gwalior, and previously with
WII, he did his PhD on the ecology of aquatic
animals in the Chambal River, Dr. Madan Mohan
Pant, a retired IFS officer and a natural resources
economist, in which he holds a doctorate, Rajendra
P. Kerkar, environmentalist from Goa, he focuses
on water purification and protection of the Western
Ghats and Lav Kumar Khachar from the royal family
of Jasan in Saurashtra, Gujarat, where he is involved
with nature education camps in the Hingolgadh
Nature Education Sanctuary. A well-known
conservationist he has spent his life spreading
awareness about nature, especially on ornithology
and Gir Forest. He is a member of the Gujarat State
Wildlife Board.
However many environmentalist criticizes the
board on the ground that all wildlife experts who
spent decades of their life for saving wildlife have
been kept away from the Board. Only retired forest
officers and some from Gujarat have found a place.
National Board for Wildlife (NBWL)
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The National Board for Wildlife (NBWL) is a

statutory body constituted under the Wildlife
Protection Act, 1972, to frame and monitor
conservation policies to safeguard Protected
Areas.Part of their job is to review and appraise all
projects that require forest lands either inside the
national parks and sanctuaries or within a 10 km
radius around them.Due to the rapid decline in
wildlife population, the Government of India in 1952
had constituted an advisory body designated as the
Indian Board for Wildlife (IBWL). In 1972, the
Wildlife (Protection) Act was enacted for providing
special legal protection to our wildlife and to the
endangered species of animals in particular. As per
the Amendment of the Act in 2002, a provision was
incorporated for the constitution of the National
Board for Wildlife, replacing the Indian Board for
Wildlife.The National Board for Wildlife (NBWL) is

the apex body under the Wildlife Protection Act,
1972, to frame and monitor conservation policies to
safeguard Protected Areas. The NBWL is chaired by
the Prime Minister. It has 47 members including the
Prime Minister. Among these, 19 members are exofficio members. Other members include three
Members of Parliament (two from LokSabha and one
from RajyaSabha), five NGOs and 10 eminent
ecologists,
conservationists
and
environmentalists.Wildlife activists are of the view
that the original intent of the NBWL has been
defeated, making the board a platform for clearing
projects damaging to wildlife. On NBWL, the views
and advice of non-governmental members are largely
overlooked. Activists feel that these members, meant
to provide an independent view to the Government,
are nothing more than window dressing.
MAKING THE LEGISLATION WOMEN-FRIENDLY
The Law Commission of India is of the view

that a pre-Independence law dealing with property
succession in Christian families gives preferential
approach to men and is unfair and unjust to
Christian women. Citing this, the commission has
recommended the government to amend provisions
in Indian Succession Act, 1925.
Noting that Christianity is the third largest
religion in India, the Law Commission headed by
Justice A.P. Shah said Sections in the aforesaid law
weave an archaic principle of giving superior status
to man in access to and owning property. The 247th
Law Commission report specifically focuses on the
impact caused by Sections 42 to 46 of the 1925 Act
on Christian women and mothers. The Commission,
in its 27-page report submitted to the Ministry of
Law and Justice, suggests amendments that would
make the law more reflective of rising social
awareness in the Christian community and of needs
of changing times.
By pointing to Section 42 of the 1925 Act the
report quotes that the provision mandates that if a
son dies intestate (without writing a will) and has

no lineal descendants (children, grandchildren), his
property, excluding his widows share, should go
entirely to his father. His mother, even if she is alive,
will not get a share. Similarly, the next Section says
if the father is already dead at the time of his sons
untimely demise, the assets of the deceased son will
not go entirely to his mother. Instead, she would
have to share it equally with the dead sons surviving
siblings.
In its report the Commission recommended that
the law should be amended so that both parents get
equal share in the deceased sons property and if
the father is already dead at the time of his sons
demise, the mother should succeed to the entire
property.The Commission believes that the
amendments suggested would go a long way in
bringing the law in consonance with time and in
addressing concerns of Christian community. At the
same time it would also be in tandem with the
objective of women empowerment,
LOSS OF ICE BY HIMALAYAN GLACIERS
As revealed by a study published in the Journal

of Glaciology, the response of the Himalayan glaciers
to climate change is very puzzling. Some of these
glaciers appear to be stagnant as their fronts appear
to be stationary, despite being subjected to similar
climate changes. However, appearances can be
deceptive and these glaciers are in one stage of
development where they are losing ice by thinning,
In this regard the report highlights the three

puzzling aspects. First, despite experiencing similar
climatic changes, such as warming, many glaciers
appear not to be retreating, in other words, they
appear to be stagnant.Second, there is a marked
difference between the average behaviour of
extensively debris-covered glaciers and sparsely
[7]
debris-covered glaciers. Third, there is a large

variation in the retreat rates of the fronts of glaciers,
which is the point where the glacier begins.
Thus the percentage of glaciers that are retreating

was nearly the same immaterial of whether they
were extensively debris covered or sparsely
covered.The group has also obtained the warming
rate in the Himalayas from the bare glacier retreat
data.The glaciated regions in the past 40-50 years
experienced an average warming rate roughly the
same as the global average warming rate, but with
a wide variability.
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Of the several variables connected with ice loss,

a careful study by the researchers indicated that
debris cover played a significant role. For instance,
of the 128 glaciers with sparse debris cover, only 18
per cent are stationary/advancing and 82 per cent
are known to be retreating. In the case of the glaciers
with extensive debris cover, as much as 48 per cent
are stationary/advancing while only 52 per cent are
retreating.This is all the more puzzling as the two
types of glaciers are not geographically separated
and do experience similar climates.
The shape, however, changes and ice is lost by

thinning. After this period, it starts to retreat.The
study thus helped in reclassifying the glaciers with
extensive debris cover as retreating despite the front
appearing stationary. As a result, the fraction of
shrinking debris-covered glaciers shot up to 73 per
cent.
These glaciers maintain a stationary front during

the first period, which can last as long as a century.
REVIVAL OF NALANDA UNIVERSITY
A sum of Rs 2,727 crorehas been sanctioned by

the Centre for the construction of Nalanda University
over the next decade. The first academic session of
the university was formally inaugurated by theUnion
Minister for External Affairs SushmaSwaraj. In the
ceremony she expressed that the Centre was
committed to take the project beyond India and East
Asian countries.
Therevival ofthe university is aimed to depict
the richnessof Indian tradition. Nalanda is the link
between past and present and bridge to the future.
Minister also visited the original campus at Rajgir
and agreed with Bihar CM Jeetan Ram Manjhis
proposal of an airport for the city. Manjhi also
proposed setting up an authority to develop the area.
Interest in the revival of Nalanda University was

not limited to people of India. In the year when the
then president APJ Abdul Kalam had come up with
the idea, the Centre had also received a proposal from
Singapore in this regard. The Centre owned it later
and ensured that it is not limited to being a state
university. Though the East Asian Summit countries
have been contributing to the flagship project, India
invited other countries to take it beyond. As India
believes,Nalanda University will emerge as a centre
of excellence by developing cutting-edge technology.
With its construction set to start next year, the
university will have an arts centre and museum,
amphitheatre, recording studio, auditorium, biogas
plant, railway station and sports fields.
RAJASTHAN BECOMES FIRST STATE TO RATIFY NJAC
Rajasthan has become the first State of the

country to ratify the National Judicial Appointments
Commission Bill 2014. The billhas already been
passed by Parliament. The Bill needs to be endorsed
by at least 15 States before it can be sent for
Presidential assent and brought into effect.
The house also adopted 121st Constitutional

Amendment
simultaneously.The
Assembly
unanimously passed a resolution to endorse the Bill.
The bill seeks to end the two-decade-old collegium
system of appointments and transfer of judges and
[8]
establish the National Judicial Appointments

Commission (NJAC). It lays down the procedure to be
followed by the proposed Commission for
recommending persons for appointment as Chief
Justice of India and other judges of the Supreme Court,
and Chief Justice and other judges of High Courts.The
Bill would be a milestone in the history of Indian
judiciary.It is expected to establish a balance between
Judicial accountability and Judicial independence
which, at present is tilted in the favour of latter.
National Judicial Appointments Commission
Procedure for Filling Up of Vacancies

When a vacancy arises in the SC or HCs, the
central government will make a reference to
the NJAC.
Existing vacancies will be notified to the NJAC
within thirty days of the Act entering into
force.
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The National Judicial Appointments

Commission (NJAC)will be aconstitutional body,
proposed under NJAC bill. It will be a six-member
body under the chairmanship of the Chief Justice
of India for recommending names to the President
of individuals with outstanding legal acumen and
impeccable integrity and credibility for judgeship
in the Supreme Court and the High Courts. It would
also recommend transfer of judges of one High
Court to another.The other members of the body
would be the law minister, two senior Supreme
Court judges and two eminent people.A collegium
comprising the Prime Minister, the Chief Justice of
India and the leader of the single largest party in
the LokSabha will select the two eminent people.
The NJAC billproposes to insert Article 124 (A) in

the Constitution and amending Articles 124(2),
217(1) and 222(1).
When a vacancy arises due to the completion

of term, a reference will be made to the NJAC,
six months in advance.
For vacancies due to death or resignation, a
reference must be made to the NJAC within
thirty days of its occurrence.
COURT SETS GUIDELINE FOR WITNESS EXAMINATION
to ensure her personal safety and security, combined

with the delay in her examination by over two years,
rendered her position extremely vulnerable.
The two judges wrote separate and concurring
judgments in the case and gave benefit of lack of
evidence and delay in examination of witnesses to
four other convictswho were awarded life term by
the lower court. The four convicts were also awarded
eight years jail term.The Court rejected the death
sentence reference and modified the conviction of
all appellants after considering various facts,
including that the mother of the deceased had turned
hostile during the trial.
The Delhi High Court has expresseda deep

concern at the collective failure of the prosecution
and the trial court to ensure early completion of
recording of evidence in a murder case. Following
this the court has issued a slew of guidelines for
examination of witnesses during trial of cases
involving grave offences punishable with more than
seven years of imprisonment.
A Sessions Court verdict awarding death penalty

to two persons, Sunil and Sudhir, for killing a youth
in 2009 was set aside by a Division Bench comprising
Justice S. Muralidhar and Justice Mukta Gupta. The
court sentenced the convicts to eight years of
imprisonment. The Court, in this regard, has held
that there was an inexplicably long gap in the dates
of examination of the main witness, the mother of
the deceased. As regards another witness, the failure
The Bench said the collective failure of the

prosecution and trial court to complete recording of
evidence on time and before the release of some of
the accused on bail had led to the mother of deceased
resiling from her earlier testimony and rendered her
evidence unreliable.
In its guidelines issued for compliance by the
courts conducting trial of cases involving grave
offences punishable with more than seven years
imprisonment, the Court held that:
As far as practicable, public witnesses, and in
particular eyewitnesses, should be examined
at the earliest point in time once the witness
action commences.
At every hearing, the trial court will note the
status of summoning of the public witnesses.
It will elicit from the Assistant Public
Prosecutor (APP) and record the reasons for
[9]
the non-appearance of the public witnesses

summoned for a specific date.
In relation to vulnerable witnesses, particularly
eyewitnesses, the trial court will enquire about
each of them even at the time of their
summoning whether in the assessment of the
APP, they would require police protection and
pass appropriate orders in that regard.
The trial court will also ensure, as far as

practicable, that short dates are given so that
the evidence of the public witnesses is
concluded within three months of the
commencement of the witness action.
Where it is not possible to adhere to this
procedure, the trial court will record the
reasons in its orders.
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The Court stated that where a public witness

appears not to be confident of deposing
fearlessly, the trial judge will temporarily halt
the recording of evidence, enquire into the
reasons and ensure that a conducive

atmosphere is created for further recording of
evidence.
[10]
INTERNATIONAL
A VOTE FOR INDEPENDENCE
most of the seats. Under the terms of the Scotland
Act of 1998:
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The people living in Scotland is going to conduct

a referendum to answer the question: Should
Scotland be an independent country?A simple
majority would decide the fate of the nation, which
at present is a British Dominion. British Prime
Minister David Cameron agreed to a referendum a
couple of years ago when he and Alex Salmond, the
First Minister of Scotland, who is also the leader of
the Scottish National Party (SNP), signed the
Edinburgh Agreement that set in motion plans for
the vote.
The official campaigns related to independence

are Yes Scotland, with party support from SNP and
Scottish Greens and the unionist Better Together,
supported by Labour, Liberal Democrats, and
Conservatives. Salmond has been the primary face
of the Yes campaign, while Alistair Darling, Labour
MP and former chancellor of the exchequer, has
headed Better Together.
The reason for Independence:
Scotland is a nation under the control of British

Government, which excercises significant control on
major policy and administrative matter of the
country. In 2011, the pro-independence Scottish
National Party won the 2011 Scottish Parliament
election by a landslide. The Salmon-led government
believes independence would make Scotland one of
the worlds richest countries. Scotlandhas rich
resources of oil.
Position and Authority of Scottish government:
Following a yes vote in a referendum on

devolving some powers to a Scottish elected body,
the Scottish Parliament came into existence in 1999.
The Parliament was initially controlled by the
Scottish Labour Party, but since 2007, SNP has held
The Scottish government can pursue its own

policies in a broad range of areas, including
education,
health,
agriculture
and
environment.
The Parliament at Westminster (Britain)
controls foreign policy, defence, immigration,
most government benefits, corporate
regulation, and energy.
It also sets most of the tax rates for the UK as
a whole.
After a yes vote in the referendum concerning

to independence of the country, there will be 18
months of negotiation on a range of issues which
includes currency, division of assets and liabilities,
borders, movement of people, EU membership,
and the distribution of welfare agreements. If
Scotland votes for a no, the SNP will remain in
office in Edinburgh until the Scottish
parliamentary elections in May 2016. All three
Westminster parties have promised more
devolution to Scotland. But Queen Elizabeth II will
still be head of state.
However, it is unclear whether an independent
Scotland would need to reapply or automatically be
granted entry in the European Union.
The Fate of North Sea oil:
In case the Scotland votes for yes, the issue

could be subject to years of wrangling. In 2012, the
North Sea supplied the UK with 67 per cent of its
oil and 53 per cent of its gas. According to experts,
if Scotland were to get a geographical share based
on the median line, about 90 per cent of UKs oil
would be under Scottish jurisdiction.
[11]
UKRAINE RATIFIES LANDMARK DEAL

moves, although they insist they want nothing less
than full independence.
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The Ukrainian President Poroshenkotermed the

adoption of the 1,200-page EU deal as Ukraines first
step towards membership of the 28-nation bloc.EU
leaders hailed it as a blueprint for Ukraines
transformation into a modern and prosperous
European democracy.Washington also praised the
pact, with State Department saying Ukraine had
made history in the face of great challenges.But the
historic occasion was muted by a decision to delay
until 2016 the implementation of a free trade deal,
an apparent concession to the Kremlin.
The Ukrainian Crisis
A landmark European Unionpact was ratified

by the Ukrainian lawmakersfor adoption of laws
granting self-rule to the eastern regions. This will
shape the future of the splintered former Soviet
state.Russia, on the other handindicated that it had
no intention of backing down in the most serious
East-West standoff since the Cold War. It announced
its plans to boost its troop presence in annexed
Crimea.
The legislation calls for December polls in

Donetsk and Lugansk and allows local legislatures
to set up their own police forces and name judges
and prosectors.Crucially, it also guarantees the right
for Russian to be used in all state institutions, a
particularly sensitive issue in the mainly Russianspeaking regions. The law also grants amnesty to
both the insurgents and Ukrainian government
forces over their actions during the conflict, although
rights groups have alleged abuses by both sides that
could be considered war crimes.Washington, by
commending the step has said the amnesty and the
special status accorded to Donbass underscored
Kievs continuing commitment to resolve the
ongoing conflict in eastern Ukraine peacefully.
The European and Ukrainian parliaments held
simultaneous votes to approve the political and
economic association agreement. The rejection of this
agreement by the former government triggered the
countrys worst crisis since independence in
1991.Lawmakers in Kiev also voted to grant selfrule in eastern regions under the control of proRussian rebels and offer amnesty to fighters under
a peace plan drawn up to halt the ongoing bloody
conflict.Insurgent leaders reacted cautiously to the
[12]
The rejection of the broad EU pact by Kremlinbacked president Viktor Yanukovych in November
set off the bloody chain of events that led to his
ouster in February, Russias subsequent seizure of
Crimea and the unleashing of the revolt in the
east.The conflict in the Lugansk and Donetsk
regions has now killed almost 2,900 people and
forced at least 600,000 from their homes, according
to UN figures.Russias denials of involvement have
not spared it from waves of punishing Western
sanctions that have left President Vladimir Putin
more isolated than at any stage of his 15-year rule.
The Russia termed it a priority to send
reinforcements to the Black Sea peninsula because
of what was described as the escalating Ukraine
crisis and the buildup of foreign troops on its
border.NATO has also unveiled plans to boost its
forces in eastern Europe in response to Russias
aggression.Russia already has tens of thousands of
soldiers in Crimea but denies NATO charges that it
sent more than 1,000 elite troops into eastern
Ukraine to help the militias launch a surprise
counter-offensive.The truce signed in early
September has offered the first significant glimmer
of hope that the crisis may be abating, although up
to 30 civilians and servicemen have since been
killed, most in shelling around the rebel stronghold
of Donetsk.Under the terms of the truce, lawmakers
adopted special status legislation that offers three
years of limited self-rule to the coal and steel belt
known as the Donbass that generates a quarter of
Ukraines exports.Many in the east accuse the
nationalist-leaning government of turning a blind
eye to alleged persecution of members of the
Russian-speaking population.But some political
leaders in Kiev and right-wing groups have also
questioned whether Poroshenko is ceding too much
to Moscow.
UN CLAIMS DECLINE IN WORLD HUNGER

The United Nations has said that the number of
hungry people in the world has dropped by 100
million over the last 10 years. But it also expressed
the concern that one in nine is still undernourished.
Ittermed Asia as home to the majority of the
underfed population.The food agencies said the
global number was down over 200 million since the
early 1990s, but warned that despite the progress
The goals include:
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MIllenium Development Goals
made, about 805 million people in the world, or one

in nine, suffer from hunger. The report points that,
the Millennium Development Goal of halving the
proportion of undernourished people by 2015 is
within reach if appropriate and immediate efforts
are stepped up. As per the report, to date, 63
developing countries have reached the target and
six more are on track to reach it by 2015.
Millennium Development Goals (MDGs) are the

targets set by international community to make the
world a better place to live for all. They are the
outcome of Millennium Summit of the United
Nations in 2000, following the adoption of the
United Nations Millennium Declaration. The goals
range from halving extreme poverty rates to halting
the spread of HIV/AIDS and providing universal
primary education. All the targets are to be met by
2015. They have galvanized unprecedented efforts
to meet the needs of the worlds poorest. The UN
is also working with governments, civil society and
other partners to build on the momentum generated
by the MDGs and carry on with an ambitious post2015 development agenda.
To halve the number of undernourished

people
To achieve universal primary education
To promote gender equality and empower
women
To reduce child mortality
To improve maternal health
To combat HIV/AIDS, malaria, and other
diseases
To ensure environmental sustainability
To develop a global partnership for
development
BANGLADESH ENACTS LAW TO PROHIBIT CHILD MARRIAGE
The Child Marriage Prevention Act of 2014 has

been approved by Bangladesh officials. A Cabinet
meeting presided over by Prime Minister Sheikh
Hasina has given approval to law. The main aim of
the law is to prevent people from following or
supporting the bad practice of child marriage. The law
closely follows the release of a report published by the
UN childrens agency which shows that two-thirds
of Bangladeshi girls marry before reaching adulthood.
Political Turmoil in Bangladesh
Bangladesh has been witnessing increased

political tensions since January when the countrys
Nationalist Party boycotted the election that returned
Hasina to power.
In January a Bangladeshi courtsentenced 14

men to death for their involvement in a 2004
arms smuggling operation. Among those
sentenced was the leader of the opposition
Jamaat-e-Islami party, a former deputy interior
minister and a former director general of the
National Security Intelligence.
In March Bangladeshi investigators moved the
government to ban Islamist party Jamaat-eIslami for its alleged involvement in war crimes
Highlights of Legislation:
This law provides fora two year jail term for any
person who marries a girl under the age of 18
It sets the minimum age of marriage for men
at 21 and for women at 18
Women who violated the law would not face
punishment, while offenders would be punished
Parents and marriage registrars would also be
punished in addition to those marrying minors
during the 1971 Bangladesh Liberation War.
In April Bangladeshs High Court ordered
former prime ministerKhaleda Zia to stand
trial on corruption charges, accusing her and
three other members of the opposition
Nationalist Party of embezzling funds from a
charitable trust named after Zias deceased
husband, former president ZiaurRahman.
In June a Bangladesh court sentenced eight
people to death and six others to life
imprisonment in connection with a 2001
Bengali New Years celebration bombing that
killed ten people.
Recently, Human Rights Watch announced
that the Bangladesh government should
abolish an enacted policy that restricts the
medias freedom of expression.
[13]
RISE IN ANTARCTIC SEA ICE

Scientists claim that the extent of sea ice in
Antarctica is set to reach a record high in coming
days. The observation follows the finding that Arctic
sea ice appeared to have shrunk to its sixth lowest
level ever.
appears to be increasing is changing wind patterns.
What are Ice Sheets?
Formation of Ice Sheets:
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As highlighted by The National Ice and Snow

Data Centre (NSIDC), Antarctic sea ice, now at 19.7
million sq km (7.6m sq m) is continuing to increase
which poised to set a record maximum this year.
The experts of Antarctic Climate and Ecosystems
Co-operative Research Centre (CRC) claim that the
area covered by sea ice have never been seen from
space before.The conundrum of why Antarctic sea
ice appears to be expanding as the Arctic decreases
had puzzled polar observers, but scientists have
suggested that the reason. Antarctic ice extent
Figures released by the NSIDC in Boulder,

Colorado, show that the so-called Arctic sea ice
minimum, the point where the extent of sea ice there
is at its lowest after the summer, before it begins to
refreeze for winter, is expected to be confirmed
imminently and would be millions of square
kilometres below the long-term average. However,
the centre noted that there had been a particularly
strong retreat of sea ice in the Laptev Sea and
although the reasons for that were not yet clear, sea
temperatures there had been up to 5C higher than
average. With temperatures rising more rapidly in
the Arctic than the rest of the planet, the amount of
sea ice cover in the Arctic has been showing a longterm decline as climate change takes hold.
Meaning and Siginificance
An ice sheet is a mass of glacial land ice

extending more than 50,000 square kilometers. At
present, the two ice sheets on Earth cover most of
Greenland and Antarctica. During the last ice age,
ice sheets also covered much of North America and
Scandinavia. Together, the Greenland and Antarctic
Ice Sheets contain more than 99 percent of the
freshwater ice on Earth. The Antarctic Ice Sheet extends
almost 14 million square kilometers, roughly the area
of the contiguous United States and Mexico combined.
The Antarctic Ice Sheet contains 30 million cubic
kilometers of ice. The Greenland Ice Sheet extends
about 1.7 million square kilometers, covering most of
the island of Greenland, three times the size of Texas.
Ice sheets are important as they contain

enormous quantities of frozen water. If the
Greenland Ice Sheet melted, scientists estimate that
sea level would rise about 6 meters. If the Antarctic
Ice Sheet melted, sea level would rise by about 60
meters. The Greenland and Antarctic ice sheets also
influence weather and climate. Large high-altitude
plateaus on the ice caps alter storm tracks and create
cold downslope winds close to the ice surface.
[14]
The formation of Ice sheets takes place in the

areas where snow that falls in winter does not melt
entirely over the summer. When, the layers of snow
pile up, over thousands of years, into thick masses
of ice, it grows thicker and denser as the weight of
new snow and ice layers compresses the older layers.
Ice sheets are constantly in motion, slowly flowing
downhill under their own weight. Near the coast,
most of the ice moves through relatively fast-moving
outlets called ice streams, glaciers, and ice shelves.
As long as an ice sheet accumulates the same mass
of snow as it loses to the sea, it remains stable.
Climate Change and Ice Sheets:
A decline has been witnessed in the mass of ice

in the Greenland Ice Sheet. From 1979 to 2006,
summer melt on the ice sheet increased by 30
percent, reaching a new record in 2007. At higher
elevations, an increase in winter snow accumulation
has partially offset the melt. However, the decline
continues to outpace accumulation because warmer
temperatures have led to increased melt and faster
glacier movement at the islands edges. Most of
Antarctica has yet to see dramatic warming.
However, the Antarctic Peninsula, which juts out
into warmer waters north of Antarctica, has warmed
2.5 degrees Celsius since 1950. A large area of the
West Antarctic Ice Sheet is also losing mass, probably
because of warmer water deep in the ocean near the
Antarctic coast. No clear trend has been emerged in
East Antarctica, although some stations appear to
be cooling slightly. Overall, scientists believe that
Antarctica is starting to lose ice, but so far the process
has not become as quick or as widespread as in
Greenland.
INDIA AND WORLD

FREEDOM OF NAVIGATION IN SCS MOOTED
Study Centre at the Ho Chi Minh National Academy
of Politics, President Mukherjee spoke of a time
when cooperation between the two countries would
reach a level when it will be possible to drive from
Hanoi to Kolkata. He quoted Ho Chi Minh in
describing the sustained partnership between India
and Vietnam as a cloudless sky. He highlighted
that India considers Vietnam as a trusted friend and
an important pillar of Indias look East Policy and
stressed that in the cooperation in the area of defence
and security, both the countries are committed to
promotion of peace in our region.
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Indian and Vietnam has moved beyond

diplomatic relations and this is the fourth year of
strategic partnership between both the countries.
During the four day state visit of The Indian
President, Mr. PranabMukharjee, to Vietnaam, a
jointcommunique was issued by the President and
his Vietnamese counterpart Truong Tan Sang. India
and Vietnam sent out a stern message by reiterating
that the freedom of navigation in the East Sea/South
China Sea should not be compromised with. They
called on all parties concerned to exercise restraint,
avoid threat or use of force and resolve disputes
through peaceful means. However, they didnt name
any particular country.
The two sides called for collective commitment

of the parties concerned to abide by and implement
the 2002 Declaration on the Conduct of Parties in
the South China Sea and to work towards the
adoption of a Code of Conduct on the basis of
consensus. China has been exerting its influence in
these waters which is not taken well by Vietnam
and other bordering countries like the Philippines.
Beijing has also objected to Indias exploration
projects in the Vietnamese oil blocks.
On this front, they called for cooperation in
ensuring security of sea-lanes, maritime security,
combating piracy and conducting search and rescue
operations. Both the countries also decided to
strengthen and deepen bilateral ties on the basis of
the strategic partnership with focus on political,
defence and security cooperation.They decided to
step up collaboration in the economic sector, science
and technology, culture and people-to-people links.
In his speech at the inauguration of an India
Highlights of MoU:
Extension of $100 million Line of Credit to

Hanoi for defence procurement, including
patrol vessels
Signing of a letter of intent between ONGC
Videsh Limited and PetroVietnam for
exploration of new oil blockswhich is aimed
at further consolidating cooperation between
India and Vietnam in energy sector and pave
the way for future collaboration between the
two countries.
EXIM Bank of Indias extension of a dollar
credit line to Vietnam, agreement on
cooperation and mutual assistance in Customs
Transfer of technology for setting up catfish
breeding and farming in India
MoU on operating and jointly promoting direct
air services under which Vietnam Airlines and
Indias Jet Airways will operate flights .This
includes daily flights between Delhi and
Mumbai and Ho Chi Minh City
SAARC CULTURAL MINISTERS MEET
India is going to host the Third Meeting of

SAARC Cultural Ministers in New Delhi. This is
indicative of the continuing relations of India with
SAARC nations and the emphasis on its further
enhancement. The meet will be attended by the
seven states out of which six including Afghanistan,
Sri Lanka, Bangladesh, Maldives, Nepal and Bhutan,

have
already
confirmed
for
their
attendance.Pakistani government is yet to
confirmation on their stance.
As per the SAARC practice, the leader of the
delegation of the host country is elected as the
[15]
chairman of the meeting.The MoS (Independent

Charge) for Culture and Tourism ShripadYessoNaik
is expected to head the meeting this time round.
A Day-long trip for delegates to the TajMahal
has also been in the schedule, where a cultural
evening has been organised by the Archaeological
Survey of India. The event will be followed by a
three-day SAARC Dance Festival in Delhi, wherein
80 dancers from the eight member states have been
invited to participate.
Declaration of the year 2016-17 as the SAARC

Year for Cultural Heritage. This is in line with
the SAARC practice of designating different
years and decades to focus on issues of
common concern.
Talks on holding SAARC cultural festivals in
member states, and cooperation in areas of
libraries, archives, museums, performing arts
and conservation activities.
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Major Agendas:
SAARC Heritage Committee on the lines of

UNESCO. With an aim to cover all aspects of
heritage management, it will function under
the auspices of SAARC Cultural Centre,
Colombo.
The major agendas of the meeting include:
Setting up of a SAARC body, called the
What is SAARC?
SAARC stands for the South Asian Association

for Regional Cooperation. It was established on
December 8, 1985 by the Heads of State or
Government of Bangladesh, Bhutan, India, Maldives,
Nepal, Pakistan and Sri Lanka. The SAARC
Secretariat was established in Kathmandu, Nepal
which serves as the headquaters of SAARC. It is a
regional forum which provides a platform for the
peoples of South Asia to work together in a spirit of
friendship, trust and understanding. It aims to
accelerate the process of economic and social
development in Member States. At the inception of
the Association, the Integrated Programme of Action
(IPA) consisting of a number of Technical
Committees (TCs) was identified as the core areas

of cooperation. Over the period of years, the number
of TCs was changed as per the requirement. The
current areas of cooperation under the reconstituted
Regional Integrated Programme of Action which is
pursued through the Technical Committees cover:
Agriculture and Rural Development
Health and Population Activities
Women, Youth and Children
Environment and Forestry
Science and Technology and Meteorology

Human Resources Development
Transport.
NEW DAWN IN INDO-CHINA TIES
The three-days state visit of Chinese President

Xi Jinping to India begun with the landing of the
President at Gujarat airport. The visit of was
accompanied by a delegation of senior officials and
was aimed at ramping up trade and investments,
besides having discussions on issues like the
contentious border dispute.Following this, a
landmark agreement has been signed by China with
the government of Gujarat. This agreement is
expected to facilitate investments worth thousands
of croresin the form of industrial parks and other
such initiatives. It was decided that China will be
guest of honour country at the New Delhi World
Book Fair 2016.
explained its historical significance to him. They later

took a walk down the Sabarmati riverfront, where
the visiting dignitaries were treated to a mix of
Gujarati tradition and culture through dances like
Garba. China signed few pacts with Gujarat for the
development of the state. They include
Making Guangzhou city in China and
Ahmedabad as sister cities. The agreements
were for establishing sister province-state
relations between Guangdong and Gujarat and
between Guangzhou City (capital of
Guangdong) and Ahmedabad.
Development of Gujarat
A Memorandum of Understanding (MoU) was

signed between the China Development Bank
(CDB) and the Industrial Extension Bureau
popular as iNDEXTb, aunit of Gujarat
government for accelerating industrial
development in the state.
During the visit to Gujarat, PM accompanied

Chinese President to the Sabarmati Ashram and
The MoUhas three years of validity. According

to the MoU, the CDB will guide and introduce
The major areas of cooperation identified by both

the countries are as follows:
[16]
Chinese enterprises to set up industrial parks

in Gujarat. CDB will also provide financial
support for the industrial parks, the first of
which will come up in Vadodara.
For the first time China has expressed its

determination to resolve the boundary problem
between New Delhi and Beijing. The President of
China remarked early settlement of the border issue
as a strategic objective. The joint statement issued
at the end of visit saw the resurfacing of the One
China concept. It was last mentioned explicitly in
2009, and then dropped since 2010.
The Indian side appreciated the support and
cooperation by the Ministry of Foreign Affairs and
the local government of Tibet Autonomous Region
of the Peoples Republic of China to Indian pilgrims
for the KailashManasarovarYatra. Indian Prime
Minister conveyed Indias concerns on the incidents
along the Line of Actual Control (LAC) and pressed
for withdrawal of the Chinese troops. The major
highlights of the border negotiations are as follows:
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At present, Gujarat has a significant presence of

Chinese with close to Rs 9,000 crore of promised
investments, most of which came during the regime
ofMr. Modi. Among the biggest Chinese investments
promised is that of Chinese firm TBEA Energy
(India) Pvt Ltd, which is developing a Green Energy
Park at Karjan near Vadodara with an investment
of about Rs 2,500 crore. Also, China Steel Corporation
is setting up an Electrical Steel Plant at Dahej GIDC
Estate at a cost of Rs 6,000 crore.
Border Issue
Trade Promotion and Market Access
The Chinese President assured that Beijing is

committed to taking concrete steps to address Indias
concerns on market access and investment
opportunities. Besides, a financial commitment to
realiseChinese investments in the next five years was
also made by China. These stepswould ensure that
the economic relations between both the
countriesshould realize their potential. They were
aimed toaddress the slowdown in trade and the
worsening trade imbalance and help improve market
access and investment opportunities for Indian
companies in China.
China committed $20 billion investment over
the next five years and agreed to provide
greater market access to Indian products in
farm, pharma and gems and jewellery sectors,
with a view to reducing the large trade gap
with India.
The Five-year Trade and Economic
Development Plan was signed by commerce
minister NirmalaSitharaman and her Chinese
counterpart GaoHucheng.The agreement seeks
to reduce the bilateral trade imbalance and
strengthen investment cooperation to realise
$20 billion investment from China in the next
five years.
As per the agreement, China will provide
market access to Indian pharmaceuticals,
handicrafts, textile, gems and jewellery, bovine
meat, oil meals, basmati and non-basmati rice,
fruits and vegetables.
India has been pressing China to lower duties

on these items with a view to encouraging
exports and bringing down the trade gap that
increased exponentially from $18.65 billion in
2009 to $36.86 billion in 2013.
Both nations recognised peace and tranquility

in the India-China border areas as an
important guarantor for the development and
continued growth of bilateral relations.
11 months after the Border Defence
Cooperation Agreement was signed during
former Prime Minister Manmohan Singhs visit
in October 2013, the two sides took a positive
view on defence cooperation.
They called for regular exchange of visits
between the defence ministries and military
leaders, so as to expand pragmatic cooperation.
President Xi, as chairman of the Central
Military Commission, is head of Chinas armed
forces and his role is crucial for this agreement.
Recalling the Agreement on the Political
Parameters and Guiding Principles for the
Settlement of the Boundary Question signed
in April 2005, both sides reiterated their
commitment to an early settlement of the
boundary question and expressed their
conviction that this will advance basic interests
of the two countries and shall, therefore, be
pursued as a strategic objective.
The two sides reaffirmed the utility and
significance of the mechanism of Special
Representatives (SRs) for seeking a political
settlement to the boundary issue and of the
Working Mechanism for Consultation and
Coordination on India-China Border Affairs
for handling border-related matters.
Terrorism and Counter-Insurgency:
?Both sides reiterated their resolute opposition to

[17]
terrorism in all its forms and manifestations

with zero tolerance, and committed
themselves to cooperate on counter-terrorism.
They also emphasised the need to implement
all relevant UN resolutions, in particular
UNSC resolutions 1267, 1373, 1540 and 1624.
Beijing has been facing the heat on incidents
emanating out of Xinjiang province, and the
Tiananmen Square incident has shaped its
thinking on terrorism.
A Memorandum of Understanding between

the Ministries of External Affairs of India and
China signed allows for the opening of the
new route for Indian pilgrims to the Tibet
Autonomous Region in the Peoples Republic
of China.
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They also agreed to hold the fourth joint Army

training at a mutually convenient time, hold
Navy/ Air Force joint exercise at a proper time,
and strengthen cooperation in such areas as
peacekeeping, counter-terrorism, naval escort,
maritime security, humanitarian rescue,
disaster mitigation, personnel training, and
think tank communication.
The new route will pass through the city of

Shigatse, which is part of the Tibetan
Autonomous Region. It will be in addition to
the Lipulekh pass in Uttarakhand through
which the yatracurrently takes place.
Nuclear Cooperation:
On the civil nuclear energy issue, both the

countries reaffirmed theirbelief on expansion
of civil nuclear energy programmeand
recognized it as an essential component of their
national energy plans to ensure energy
security.
The two sides decided to launch working level
consultations between the Department of
Atomic Energy (DAE) on the Indian side and
the China Atomic Energy Authority.
The two sides decided to carry out bilateral

cooperation in civil nuclear energy in line with
their respective international commitments.
Tourism and Pilgrimage
China has agreed to allow the

KailashManasarovar yatrathrough the Nathula
pass in Sikkim. Following this, theIndians
travelling on the annual yatra will have
another route.
The opening of new route offers many

benefits. It makes KailashMansarovar
accessible by a motorable road, which is
especially beneficial for older pilgrims. It offers
a safer alternative in the rainy season, makes
the pilgrimage shorter in duration and will
enable a much higher number of pilgrims to
go there.
Space and Transportation
An MoUwas signed between the Indian Space

Research Organization(ISRO) and the China
National Space Administration
MoUwill allow India and China to encourage
exchange and cooperation in the exploration
and use of outer space for peaceful purposes,
including research and development of
scientific experiment satellites, remote sensing
satellites and communication satellites.
The two countries have also agreed to enhance
cooperation in the railway sector, including
studying the feasibility of cooperation in a
high-speed train. In this regard, the MoUwas
signed between the Ministry of Railways and
Government of China.
Under the Memorandum of Understanding for
Railways, both sides agreed to work on raising
the speed and more cooperation on the
Chennai-Mysore route as well as discussing
the bullet train project.
BOOSTING TELE-CONNECTIVITY IN BORDER AREAS
Alicence condition that has barred telecom

service providers from installing Base Trans-receive
Stations (BTS) within 10 kms of the international
border has been relaxed. The move is aimed at
strengthening mobile connectivity in areas close to
the countrys international border.
The Department of Telecommunication has
admitted to some difficult areas where mobile signals
are not available, primarily on account of the bar on
[18]
service providers to set up base stations. However,

several instances of the availability of mobile signals
of foreign mobile networks inside Indian territories
have been reported in the past. The instances of
availability of mobile signals of Pakistani mobile
networks inside Indian territories in the border areas
of Rajasthan such as Bakhasar, Barmer, Jaisalmer,
Bikaner, Sriganganagar, Sri Karanpur, Raisingh
Nagar, Anupgarh and Punjabs Gurdaspur, Amritsar
and Ferozpur.
and the international border running between

Akhnoor in Jammu and Kashmir and
Pathankot in Punjab have been notified as outof-bounds for telecom service providers.
Highlights of Guidelines:
This new norm is subject to the condition that
the base stations, wherever located, would be
as far away from such border as feasible and
made to operate in such a manner that the
radio signals fade out when nearing or about
to cross international border and become
unusable within a reasonable distance across
such border.
The installation of base stations, cell sites or

radio transmitters can be taken up by the
service providers only after prior approval
from local Army authorities about their specific
location.
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The relaxation is for the entire border.

However, the areas falling within 10 km of
the Line of Control, Line of Actual Control
In addition to this sector, other out-of-bounds

areas could also be notified from time-to-time
by the Telecom Regulatory Authority of India.
[19]
ECONOMY
RBI EASES NORMS OF EQUITY ISSUES
entry route, sectoral cap, pricing guidelines and
compliance with the applicable tax laws.
Convertible debentures are a type of loan issued
by a company that can be converted into stock by
the holder and, under certain circumstances. On
account of addition of the convertibility option, the
issuer pays a lower interest rate on the loan
compared to if there was no option to convert. These
instruments are used by companies to obtain the
capital they need to grow or maintain the business.
Convertible debentures are different from convertible
bonds in the sense that debentures are unsecured.
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The Reserve Bank of India (RBI) has allowed

companies to issue equity shares to a resident outside
India against any type of fund subject to certain
conditions. This highlights the further liberalissation
of foreign direct investment (FDI) norms by RBI.
The existing guidelines were reviewed by the
central bank for the issue of shares or convertible
debentures under the automatic route. It has
permitted issue of equity shares against any fund
payable by the investee firm, remittance of which
does not require prior nod of the government or the
RBI.
According to earlier provision, an Indian

company under the automatic route could issue
shares/convertible debentures to a person resident
outside India against lump-sum technical know-how
fee, royalty external commercial borrowings (other
than import dues deemed as ECB or trade credit)
and import payables of capital goods by units in
special economic zones. The guidelines allow
issuance of shares subject to certain conditions like
Notification: At a Glance:
Equity shares shall be issued in accordance

with the extant FDI guidelines on sectoral caps
Pricing guidelines and the issue of equity
shares under this provision shall be subject to
tax laws as applicable to the funds payable
The conversion to equity should be net of
applicable taxes
AUGUMENTING NAVAL SECURITY INFRASTRUCTURE
Indian Navy istaking active steps for fortifying

the security of berthed warships. As a part of the
strategy, the Navy is set to adopt force protection
measures. The measures are envisaged in the
aftermath of 26/11 in order to augment security
around the coast and high-value naval assets.
The project is said to cost around Rs. 270 crore.
The process of installation is going on and the plan
is expected to getoperationalised by end of the year.
There is already the specialisedSagarPrahariBal
ensuring security of vital naval installations and
assets stationed along the coast. The new measures
will help neutralise asymmetric sub-surface threats.
Measures in Crux:
The deployment of a cluster of high-power

underwater sensors, diver detection sensors
and high-definition sensors for surveillance,
both surface and sub-surface, of naval wharfs
and jetties
The high-priority Integrated Underwater

HarbourDefence Surveillance System
(IUHDSS) is currently in various stages of
implementation around naval quays in
Mumbai, Visakhapatnam, Kochi and Port Blair.
The multi-agency Joint Operations Centres
(JOC) at these naval locations will receive realtime images relayed by these sensors, with the
command and control vested with the coastal
defence commanders Flag Officers
Commanding-in-Chief in respect of the three
naval commands and the Commander-in-Chief
of the Andaman and Nicobar joint services
Command.
The plans to cast a network of electro-optical
sensors, thermal imaging sensors, radars and
diver detection sensors around naval jetties.
[20]
SCIENCE AND TECH.

A LOW COST WATER PURIFICATION TECHNIQUE
Since the holes were sub-micron in size, pressure
was required to force water through the holes. The
pressure used varied from one to seven psi. Flux,
which is also the rate of water flow, increased as the
pressure applied increased. Since pressure was used
to force water through the tiny holes, the
hydrophobic nature of the tablet would not have
mattered.
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A study published in the Journal of Materials

Chemistry A highlights that the researchers of
Bangalore-based Indian Institute of Science (IISc) and
Steer Engineering Pvt. Ltd, has developed a lowcost water purification membrane. It is capable of
filtering out objects greater than one micron size
and also killing E. coli bacteria. The novel
membrane with pores as small as 0.57-0.68 microns
was developed by mixing two polymers,
polyethylene (PE) and polyethylene oxide (PEO), at
180 degree C. Unlike PE, PEO is water-soluble and
the two polymers are immiscible.Tiny holes came
into being once the water-soluble polymer was
removed.
The amount of PEO polymer distributed in the

PE matrix should also be sub-micron in size, in order
to create pores that are sub-micron in size. For the
achievement of aforesaid objective, only a tiny
amount of PEO was taken compared with PE. Also,
the polymers mixed at 180 degree C were sheared at
high speed to produce tiny droplets of PEO. The
higher the shear rate, the smaller the droplets.The
PEO droplets on the matrix were then removed to
create tiny holes. The mixture is taken and dipped
in water. As soon as the mixture is dipped, the PEO
gets dissolved in water leaving behind tiny holes in
the PE matrix.
As a further development, the researchers
rendered the membrane antibacterial against E.coli.
For this, grapheme oxide (GO) was mixed with PE
and PEO and the graphene oxide was made
functional with amine groups. The tablet-shaped
samples with tiny holes are hydrophobic (water
repellent) in nature.
The membrane filtered all solid substances that

were more than one micron in size. By itself, the
membrane cannot remove salinity. For that, the
reverse osmosis has to be used.When put into a
colony of E. coli bacteria, the tablets reduced the
E. coli colony at 37 degree C; measurements were
made 24 hours after the tablets were left in the
bacterial colony.There are two ways in which the
bacteria may be getting killed. The roughness of the
grapheme oxide surface is one factor while the
interaction of the amine group of the tablet with the
phosphate group of the lipids present in the cell
could be another. The amine group destroys the
integrity of the cell membrane.The tablet being
hydrophobic in nature, the killed E. coli to a large
extent do not stick to the membrane.
Though it cannot remove salinity, its ability to
filter particles larger than one micron makes the
membrane attractive.This membrane can support
reverse osmosis but cant replace it. If this membrane
is used before RO then the efficiency of RO
membrane will increase. When the pure water is
supplied to RO unit, the pressure on RO motor will
come down. So the efficiency of RO will increase.
[21]
HEALTH
COMBATING KALA-AZAR
Sandflies are found in moist, unhygienic conditions
and if that is prevented, it would be easy to work
for eradication of disease.
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As a part of initiatives to curb the spread of the

vector-borne disease, Kala Azar, the Union Health
and Family Welfare Ministry has urged States to
accelerate the construction of pucca houses. The
Ministry hasset deadline for eradication of Kala Azar
by 2015. Kala Azar, which spreads through the bite
of the sandfly, is predominant in Bihar, Uttar
Pradesh, Jharkhand and West Bengal.
For effective implementation of the project, the

Centre had set aside a special package of Rs. 96
crore for construction of houses under the Indira
AwasYojana in 15 districts of Bihar during 2008-09.
However, owing to various constraints, including
cost overruns, the project did not take off and the
spread of disease continues.
As highlighted by Ministry Indoor residual
spraying (IRS), which is a preventive step, is more
effective in pucca houses than those made of mud
and thatch. Extensive use of IRS is among the steps
being taken up under the renewed programme to
control the disease.Ensuring clean, hygienic
surroundings is an important preventive measure.
What is Kala Azar?
Kala-azar is a vector borne disease. It is a slow

progressing indigenous disease caused by a
protozoan parasite of genus Leishmania. In India,
Leishmaniadonovani is the only parasite causing
this disease. It is the second largest parasitic killer
in the world after Malaria. The parasite is spread to
humans by bites from infected female sand flies.
The parasite primarily infects reticuloendothelial
system and may be found in abundance in bone
marrow, spleen and liver. It also attacks the immune
system, and is almost always fatal if not treated.
Post Kala-azar Dermal Leishmaniasis (PKDL) is

a condition when Leishmaniadonovani invades skin
cells, resides and develops there and manifests as
dermal leisions. Some of the kala-azar cases
manifests PKDL after a few years of treatment.
How Kala-azar is transmitted?

Sandfly of genus Phlebotomusargentipes are
the only known vectors of kala-azar in India
Indian Kala-azar has a unique epidemiological
[22]
The Centre has also begun an extensive outreach

programme to combat the disease. As per the
programme instead of waiting for the patients to
come for treatment, health workers and voluntary
organisations would locate the patients who need
treatment. The disease will be combated through a
four-pronged programme. The first step will be IRS,
the second will be the care treatment protocol, the
third is active search where we will locate patients,
and fourth will be changing the treatment regime
shifting from tablets to injectable medicines.
As a part of its strategy to combat the disease, a
Kala Azar rapid-diagnosis kithas also been unveiled
by the Centre. It will also supply an insecticide,
synthetic Pyrethroid, directed specifically at the
sandfly, for spraying on the walls of homes in the
endemic regions in 54 affected districts.
Understanding Kala-Azar
feature of beingAnthroponotic which means

human is the only known reservoir of infection
Female snadflies pick up parasite (Amastigote

or LD bodies)while feeding on an infected
human host.
Parasite undergoes morphological change to
become flagellate, development and
multiplication in the gut of sandflies and move
to mouthparts
Healthy human hosts get infection when an
infective sandfly vector bites them. The blood
containing leishmania parasites is drawn from
an animal or human, the next person to receive
a bite will then become infected and develop
leishmaniasis.
Signs and Symptoms of Kala-Azar
Recurrent fever intermittent or remittent with

often double rise
Loss of appetite, pallor and weight loss with
progressive emaciationweakness
Splenomegaly: spleen enlarges rapidly to

massive enlargement, usually soft and nontender
Liver enlargement, not to the extent of spleen,
soft, smooth surface, sharp edge
Skin dry, thin and scaly and hair may be
lost. Light coloured persons show grayish
discolouration of the skin of hands, feet,
abdomen and face which gives the Indian
name Kala-azar meaning Black fever.
These tests require lab facilities and specialists

not readily available in resource-poor, endemic
areas.
The most common method of diagnosing
kalaazar is by dipstick testing. However, this
method is highly problematic. In endemic
areas, people can become infected with
kalaazar but it may not develop into the
disease. Therefore, no treatment will be
required.
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Rapiddevelopment of Anaemia
Tissue samples are required from the spleen,

lymph nodes or bone marrow.
Issues of Diagnosis
The most effective diagnostic tests for

leishmaniasis are invasive and potentially
dangerous
Dipstick testing only establishes whether a

patient is immune to kalaazar. So if the parasite
is present it would appear that the patient has
the disease. Because of this, dipstick testing
cant be used to see if the patient is cured, is
re-infected or has relapsed.
[23]
NEWS IN BRIEF
NEWSMAKERS
Lalitha Kumarmangalam
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Lalitha Kumaramangalam has been appointed

as the new chief of the National Commission for
Women (NCW). The appointment was made by the
Union Ministry of Women and Child
Development.Ms. Kumaramanglam is an alumnus
of St. Stephens College, Delhi and has an MBA from
Madras University. She runs Prakriti, an NGO. She
had contested the Lok Sabha elections in 2004 and
2009 from BJP.
Ms. Kumaramangalam expressed her keenness

to mainstream the gender issue in a holistic manner.
After being appointed as the chief of NCW, she laid
down her primary aim to mainstream the gender
issue in every developmental activity. Gender issues
are usually reduced to man versus woman, but the
new chief wants to address it in terms of allowing
women access to all and every development activity,
whether it is access to sanitation, or smart cities.
National Commission for Women (NCW)
The National Commission for Women (NCW)

was established as a statutory body under the
National Commission for Women Act, 1990. It seeks
to review the constitutional and legal safeguards
for women, recommend remedial legislative
measures, facilitate redressal of grievances and
advise the Government on all policy matters
affecting women.The NCW has adopted a multipronged strategy to tackle the problem viewing the
problem of violence against women as multifaceted.
The Commission has initiated generation of legal
awareness among women, thus equipping them
with the knowledge of their legal rights and with
a capacity to use these rights. It assists women in
redressal of their grievances through pre-litigation
services. To facilitate speedy delivery of justice to
women ParivarikMahilaLokAdalats are organized
K LManjunath
K L Manjunath is the Judge of Karnataka High

Court.The central government has sent back the
Supreme Court collegiums recommendation to
transfer him to the Punjab and Haryana High Court.
Meanwhile, a group of Lok Sabha MPs has started
a signature campaign to initiate impeachment
proceedings against him.
The four Aam Aadmi Party (AAP) MPs and some
others have already signed the notice of motion for
presenting an address to the President under Article
217 read with Article 124 (4) of the Constitution for
Justice Manjunaths removal for proven
[24]
in different parts of the country to review the

existing provisions of the Constitution and other
laws affecting women and recommending
amendments thereto, any lacunae, inadequacies or
shortcomings in such legislations. It organizes
promotional activities to mobilise women and get
information about their status and recommend
paradigm shift in the empowerment of women.The
Complaints and Counselling Cell of the commission
processes the complaints received oral, written or
suomoto under Section 20 of the NCW Act. The
complaints received relate to domestic violence,
harassment, dowry, torture, desertion, bigamy, rape,
refusal to register FIR, cruelty by husband,
deprivation, gender discrimination and sexual
harassment at work place.NCW tackles the
problems by ensuring that investigations by the
police are expedited and monitored. Family disputes
are resolved or compromised through counselling.
misbehaviour.Among the charges that the MPs have

levelled against Manjunath are: possession of wealth
disproportionate to his known sources of income,
hearing and deciding a petition in favour of a
housing society in which his daughter owned a plot,
and failing to declare his assets in violation of the
Full Court Resolution of 1997.
It was alleged that Manjunath, who was elevated
as additional judge in 2000 and a permanent judge
in 2001, abused his position to amass several
movable and immovable properties worth crores of
rupees, disproportionate to his known sources of
income.Property registration deeds and several other
documents have been attached as annexures to
support the allegation that Manjunath acquired

several properties in the name of his daughter, wife
and mother-in-law.
SC collegium for reconsideration. The collegium,

headed by Chief Justice of India R M Lodha,
thereafter didnt reiterate its recommendation.
The MPs have also accused him of hearing and

deciding a petition involving a housing society with
clear conflict of interest.An MP who has signed the
impeachment motion said it would be presented to
the President before the winter session of Parliament.
The previous two attempts by Parliament to

impeach sitting members of higher judiciary,
Calcutta High Court judge SoumitraSenand Chief
Justice of the Sikkim High Court P D Dinakaran,
came to end after both resigned from their respective
posts before the impeachment motions against them
could be taken to their logical conclusion. The
judicial accountability has been a core question of
discussion among Indian political system. The NJAC
bill 2014 seeks to address this issue.
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In July this year, citing a strongly-worded

adverse note by a senior Supreme Court Judge
against Manjunath, the Centre had sent the
recommendation regarding Manjunath back to the
OBITUARIES
Mandolin U Shrinivas
Mandolin U Shrinivaswas a great musician. The

Carnatic music world is in a state of deep shock
over the untimely death of his on account of liver
failure.
He emerged at a time when there was

despondency about the future of Carnatic music.
Many of the Carnatic greats had passed on and the
then reigning generation was considered the last of
the classicists.
He entered into the field of Carnatic music at

the age of 12. He was holding the so-called mandolin,
which was nothing other than a mini-electric guitar.
He did not come from the kind of Brahmin home
that is in the Carnatic world, nor from a position of
any affluence. Yet he emerged as an icon, a child
icon of the 80s.
His father, Satyanarayana, was a band clarinet
player and also part of the film world. Initially, he
translated the music of his father into the mandolin

and this was how his father knew that here was a
gifted child.
He soon received tutelage from Subbaraju. But
the truth is that Shrinivas had to discover the
mechanics of the instrument, its aural shape and
place the Carnatic within it. He listened to many
great artists rendering ragas and recreated them with
spectacular success.
This was only the beginning of his musical
search. Soon Shrinivas had gone beyond the
instrument, he was creating artistic spaces and
moments that were not driven by his skill, ability or
instrument.
He played Kalyani at the Music Academy in
Chennai when Shrinivas disappeared and the
Kalyani pervaded the arena. This movement of
Shrinivas from a raw performer to an artist was
something to behold.
COMMITTEE/COMMISSION
Mashelkar Panel
An expert panel has been set up by the

government to recommend best technologies for
Prime MinisterNarendraModis Swachh Bharat
national
sanitation
campaign.Scientist
RaghunathAnantMashelkar, former director general
of the Council of Scientific and Industrial Research,
has been named as the Chairperson of the panel.
At present, MrMashelkar overseas the Global
Research Alliance, a network of publicly funded
institutes from the Asia-Pacific, South Africa, Europe
and the US with over 60,000 scientists.He was
conferred with the Padma Shri in 1991, Padma
Bhushan in 2000 and Padma Vibhushanin 2014.The

committee consists of 19-members. It also includes
senior officials from the ministry of drinking water
and sanitation, and representatives from the state
governments of Gujarat and Maharashtra. Rajesh
Kumar, director for water in the central nodal
ministry, is member secretary.
Terms of Reference:
To examine best technologies on sanitation and

water so that they can be scaled up on a
sustainable basis in various states, with
affordability, sustainability, scalability and
quality as the main criteria.
[25]
To suggest ways for achieving PMs Swachh

Bharat goals by 2019, with an emphasis on
areas like potable water and sanitation.
innovations that will be needed in terms of

policy and fiscal measures, to put them in
effective use.
To examine the environmental impact of each

technology compared with its uses.
To recommend innovative ways by which all

stake-holders- government, utilities, service
providers, non-profits and other institutionscan be roped in to create a powerful network
to deliver the larger objective.
To examine the uses of these technologies in

different agro-climatic zones in the country,
and also suggest what non-technological
Swachh Bharat Abhiyan
The Swachh Bharat Mission will also make an

initiative of establishing an accountable
mechanism of monitoring latrine use.
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Swachh Bharat Abhiyan is an initiative launched

by PMModi under which he has urged all the
citizens of the country to devote some time to clean
the country. While the exact nature of the
programme is yet to be finalised, PM has invited
ideas from people at large on the design of Mission
Swachh Bharat. Mission Swachh Bharat aspires to
realiseGandhijis dream of a clean India through
janbhagidari (peoples participation). PM has
announced that the programme will be launched
on Oct 2, 2014, the birthday of Mahatma Gandhi.
defecation is one of the main causes of deaths

of thousands of children each year.
Objectives:
The programme is expected to include following

broad priniciples:
Construction of individual, cluster and

community toilets.
To eliminate or reduce open defecation. Open
Public awareness will also be provided about

the drawbacks of open defecation and
promotion of latrine use.
Proper, dedicated ground staff will be
recruited to bring about behavioural change
and promotion of latrine use.
For proper sanitation use, the mission will aim
at changing peoples attitudes, mindsets and
behaviours.
To keep villages clean.
Solid and liquid waste management through
gram panchayats.
To lay water pipelines in all villages, ensuring
water supply to all households by 2019.
MISCELLANEOUS
Hoolock Gibbon
Facts about Hoolock Gibbon
A highly endangered species has made a new

entry in the Delhi zoo. Ithas been brought here all
the way from Mizoram. The 6-8-year-old female
hoolock gibbon is a highly endangered species and
is listed on Schedule 1 of the Indian (Wildlife)
Protection Act, 1972. Presently, she is getting used
to the climate and change of diet at the Delhi zoo
and will be introduced to the two other hoolock
gibbons (a male and female) on display.
Hoolocks are the second-largest of the gibbons.

They reach a size of 60 to 90 cm and weigh 6 to 9
kg. They differ considerably in coloration: males are
black-colored with remarkable white brows, while
females have a grey-brown fur, which is darker at
the chest and neck. White rings around their eyes
and mouths give their faces a mask-like appearance.
The range of the hoolocks is the most northwestern
of all the gibbons, extending from northeast India
to Myanmar. Small populations live also in eastern
Bangladesh and in southwest China. In northeast
India, the hoolock is found south of Brahmaputra
and east of the Dibang Rivers. Like the other gibbons,
they are diurnal and arboreal, brachiating through
the trees with their long arms. They live together in
monogamous pairs, which stake out a territory. Their
calls serve to locate family members and ward off
other gibbons from their territory. Their diet consists
mainly of fruits, insects and leaves. They are primate
species of genus Hoolock in the gibbon family,
Hylobatidae.
The animal has been brought in as part of the

zoos breeding programme and is from the wild.
This gibbon was in the Mizoram zoo for over four
years and was transported to Kolkata by road and
then brought here by air. The animal weighs about
12-15 kg and has an average life span of 30-35 years.
The animal is currently coping with a change in diet
and is getting used to a new variety of fruits and
other supplements being provided to her. Zoo
authorities as giving her bananas, apples and other
fruits along with egg, bread and milk which are
new to her in order to facilitate slow adaptation to
the change.
[26]
SPORTS
Indonesia to Host 2018 Asian Games
As per the decision of the Olympic Council of
Asia, the 18th Asian Games will be hosted by
Indonesias capital Jakarta in 2018.Hanoi in Vietnam
had originally won the bid to host the next Asian
Games, but withdrew this year because of economic
problems.Hanois bid was for 2019, but Indonesia
will host the event in 2018.
Jitu Rai Brings First Gold for India

As India launched its campaign in the 17th Asian
Games, new shooting sensation JituRai stole the
limelight by providing the first gold medal.
ShwetaChaudhry claimed a bronze. This was Jitus
sixth medal on the trot in international competitions
this year.
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The second-largest city of Indonesia, Surabaya,

had missed out to Hanoi in the original bid for the
next Asian Games. But Indonesias National Olympic
Committee came back with an offer for Jakarta to
host, supported by Palembang, the capital of South
Sumatra, the OCA said.The 17th Asian Games are
taking place in Incheon, South Korea.Indonesia held
the fourth Asian Games in 1962 and has hosted other
international events, including the inaugural Asian
Beach Games in Bali in 2008.
HemaChetri in womens category, also made it to

the competition stage having survived their
elimination rounds in the 300-metre standard rifle
event.
The Olympic movement was witnessing a decade

of Asia in terms of events, headlined by Tokyo
hosting the Olympics in 2020 and South Koreas
Pyeongchang due to host the 2018 Winter
Olympics.Asia also has two strong candidates for
the 2022 Winter Olympics, with Beijing in China
and Kazakhstans largest city, Almaty, both in the
running. This is the manifestation of the growth and
dynamism of sport in Asia.
Pradip Wins Bronze Medal
The young shooter Pradeep bagged a bronze

medal in the 51st Shooting World Championships.
This brings a wave of cheer among Indian players.
Pradeep won the honour in 25-metre standard pistol
event for junior men.Pradeep also helped the threemen Indian team to finish fourth overall. He ended
with a score of 561 in the competition stage, to settle
for third position behind Dario Di Martino of
Italy.Both Dario and Pradeep finished with identical
scores.
The Italian, however, edged out Pradeep by a
point in the shoot-off for second and third positions.
Alexander Chichkov of the USA won the gold

with a score of 563.This is the Indian squads second
medal in the competition after JituRais silver in the
mens 50-metre pistol event.
In the other events, Gurpreet Singh shot well
but not well enough to finish 13th in the 25-metre
mens standard pistol event with a score of 566.
Rahul Poonia, Anil Pal Singh in the mens and
Jitu struck gold in the 50m pistol event

andShwetas bronze came in the 10m air pistol
competition at the Ongnyeon Shooting Range. Medal
aspirants HeenaSidhu and MalaikaGoel turned out
to be disappointments as they failed to even reach
the finals. India also assured themselves of a bronze
medal in badminton and squash events on what
turned out to be a reasonably good opening show
with a gold medal coming on the very first day.
India ended a 28-year-oldmedal drought in
badminton,in Asian Games after the womens
shuttlers, led by SainaNehwal and P V Sindhu,
edged out Thailand 3-2 to reach the semifinals of
the team event. After Saina and Sindhu registered
hard-fought victories in the first two singles, scratch
combination of Sindhu and AshwiniPonnappa
finally assured India the bronze medal after they
clinched the final womens doubles match.
India also assured their first ever womens
singles medal after top players DipikaPallikal and
JoshanaChinappa won their respective openers and
set up an exciting contest in the quarterfinals. World
No.21 Chinappa blanked 183rd ranked South Korea
Song Sunmi 11-9, 11-7, 11-7 at the Yeorumul Squash
Courts. Soon after, World No. 12 Pallikal stepped
on the court against 150th ranked JinyueGu of China.
The Indian womens tennis team was also off to
a winning start as it blanked Oman 3-0 in the first
round.
PrarthanaGulabraoThombare
and
AnkitaRaina notched up contrasting singles victories
before the pairing of Natasha Marie Anne Palha and
RishikaSunkara was handed a walkover in the
doubles match.But the star of the early proceedings
was undoubtedly ArmymanJitu. The 27-year-old
showed steely grit to get the better of a strong field,
which included two-time Olympic champion Jin
Jongoh of South Korea, to snatch the gold off the
[27]
final shot in a straight duel with Vietnamese rival

Nguyen Hoang Phuong.
The Vietnamese was leading the Indian ace, who
had recently won the gold at the Glasgow
Commonwealth Games and a silver at the Granada
World Championships going into this competition.
But the Indian clinched the issue on the last shot.
The bronze was clinched by Chinas Wang Zhiwei

(165.6). Jitu thus became only the second Indian
pistol shooter to clinch an Asian Games title after
JaspalRana and the fourth shooter overall after
shotgun experts Randhir Singh in 1978 and Ronjan
Sodhi in 2010.
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[28]
EDITORIAL
MAKING IT WORK
efficiency and gains to rural households.
Through my own research using longitudinal
data, I am convinced of the positive impacts that
this scheme has had in lowering poverty by
improving food security, financial inclusion and
physical and mental health outcomes of
participating rural households (Ravi and Engler
2011). Simultaneously, we have found that the
MGNREGS had a strong positive influence on real
rural wages, with far-reaching repercussions for
farmers as well as micro, small and medium
enterprises in rural areas. Using the same data, we
find that the rising real rural wages have increased
the cost of labour for small and medium farmers
and raised the opportunity cost of self-employment,
thereby causing a great casualisation of the rural
labour force. There is widespread movement away
from self-employment and small farming into casual
labour. This is a cause for concern, as one expects
the reverse with the development of an economy.
Higher labour costs and scarcity of labour have
also had adverse impacts on the cropping pattern
in agriculture. If these lead to an increase in prices
of agricultural products, the gains from the
MGNREGS are likely to be eroded, even for the
participating households. The MGNREGS must
then be restructured such that it doesnt impede
enterprise while contributing to the overall
productivity of the rural economy.
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The MGNREGS stands out as one of the Indian

governments most ambitious social schemes, with
far-reaching consequences throughout the
economy. The only known recipe for poverty
eradication is a combination of high growth and
high development spending. Neither is sufficient.
A recent study (Kapoor and Ahluwalia, 2012) has
shown that post-liberalisation, one champion of
poverty reduction in India is Andhra Pradesh. This
reduction in poverty is widespread, as seen in all
possible cross-cutting of the data: rural/ urban,
Hindu/ Muslim, SC/ ST. The study shows that
this was achieved through sustained high growth
in the state, including growth in the agricultural
sector, together with high social spending. The
lesson, therefore, from the Andhra experience is
that growth does trickle down, if managed
properly.Almost all research on the MGNREGS
concludes that the demand for employment exceeds
the states capacity to create jobs. In eight years,
households on average got employment for less than
50 days, whereas the act guarantees at least 100
days of unskilled work. With complete disregard
for the states low capacity at job creation, political
pressures remain to raise the number of days under
this scheme. The Rajasthan government succumbed
to this temptation in 2013 under Ashok Gehlot,
and raised the number of days to 150. A legal right
that is impossible to fulfil is a bad idea. It
fundamentally weakens the value of a right by
making its violation acceptable.
Against this fact, one could argue that if India
had a robust identification system and strong
political will, the MGNREGS could be replaced by
a direct cash transfer programme. In the absence
of political will and accurate targeting capabilities,
however, a workfare scheme like the MGNREGS is
second-best for the rural sector, where the absence
of productive employment opportunities in
agricultureis severe. The merit of a workfare
programme as a means for direct transfers to the
most needy is that it helps target beneficiaries, as
the non-poor are less likely to accept low wages
and heavy unskilled labour. It is time, however, to
restructure the MGNREGS to raise its overall
Limiting the MGNREGS to the 100 days of

summer when agricultural work is in short supply
is a good point to start. This is a possible solution
to the twin problems of the low job creation
capacity of the state as well as distortions in the
private rural labour market. In the first few years
after the scheme was implemented, there was a
strong seasonality to the demand and supply of
work under the scheme. Over the years, this
seasonality vanished as the above-market wages of
MGNREGS made public works more lucrative and
the incentive to seek outside employment decreased.
Restricting the MGNREGS to the summer months
will, therefore, reduce these pressures on rural
labour markets and, at the same time, allow
implementing authorities to specialise in the
[29]
MGNREGS during those months. It is nave to

expect local government officials to possess the
capacity to create mass employment at short notice,
within a geographical proximity, repeatedly
through the year.
Finally, there is significant variation in the

implementation of the MGNREGS across states.
Lower-income states with limited organisational
capacities tend to lag, while wealthier states like
Andhra have been more successful. The Andhra
government has extensively used technology in the
MGNREGS, tying electronic transfers to biometric
authentication to monitor leakage and track usage.
If the MGNREGS is here to stay, there has to be an
effort to create capacities in low-income states to
successfully plan, organise and implement such
large social schemes. Over time, states should have
the flexibility to redesign the MGNREGS according
to their own needs and potentially experiment with
alternatives, such as direct cash transfers.
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Second, the emphasis must be shifted from

employment to productive employment. In his
budget speech, Arun Jaitley stated the need to link
job creation under the MGNREGS to asset creation.
Even ardent supporters of the scheme acknowledge
that not enough assets are being created. Between
2007 and 2010, the number of assets created were
2.3 per 100 hectares of cropped land (ministry of
rural development, 2012). Shifting the focus to asset
creation has to start by expanding the scopeof
permissible activities. This has been attempted by
including work on private land, building individual
household latrines, school toilet units and
community sanitary complexes. While this is
welcome, the selection of assets to be created has
to be done with a long-term view on usage and
productivity. At the same time, the creation of some
of these assets might require a serious rethink of
Section 1 of the MGNREGA, which limits
expenditure on material and skilled labour costs to
less than 40 per cent of the total project cost for
each independent work.
Third, the scope of the work has to be expanded

from purely unskilled to semi-skilled jobs. The
provision of such jobs under the MGNREGS would
lead to the skilling of agricultural workers and make
them employable beyond unskilled work. Lowskilled food processing, manufacturing and
handloom weaving are possible areas. Including
such labour-intensive industries in the MGNREGS
would be a win-win solution these industries
could grow and create jobs while rural workers
would gain skills.
MORE THAN A QUOTA
In a judgment last week, the Supreme Court

held that differently-abled persons will be entitled
to reservation in the civil services, not just at the
time of recruitment, but also in promotions. In
doing so, the apex court quashed a 2005 Central
government directive that the reservation quota be
confined to identified posts. The SC ruling intends
to give effect to the full scope of the provisions in
the Persons with Disabilities (Equal Opportunities,
Protection of Rights and Full Participation) Act,
1995. But a lot more will also need to be done if
the reservation of jobs is not to remain an
intervention at the top, disconnected with and
remote from the everyday, ground-level concerns
of the groups it is meant to address.
The enabling legislation and the court

directive on its scope and intent ought to be
seen as only a beginning. For the law to be
implemented in its true spirit, a concerted effort is
needed to streamline and sensitise social and public
infrastructure to the rights and needs of the
differently-abled. From conducting awareness
campaigns to making physical infrastructure
friendly to those with special needs, there is a lot
[30]
for government and society to do. The differentlyabled must be seen as equal participants in Indias
growth story and the impediments that prevent
them from contributing fully must be acknowledged
and addressed. This requires a focus on providing
better access to public facilities, such as schools,
hospitals, recreational areas and government
buildings, among other measures.
While the Central government and many states
have social welfare schemes for the differentlyabled, there is room to understand the special
requirements and demands of the groups they
intend to address better and tailor the programmes
accordingly. Poverty is a major cause of disability.
Prevention of disability through poverty alleviation
and better nutrition, complemented by better health
services, therefore, is one of the first steps that need
to be taken. Periodic reviews of welfare schemes
using perception surveys among the intended
beneficiaries would help the government tweak
programmes for better implementation and results.
No law can be an effective tool for social
transformation unless last-mile issues are addressed.
BUILD IT GREEN
arrangements within which building energy
efficiency operates. Technical expertise is housed
within different institutional arrangements
countrywide and traverses a range of issues, such
as building technologies, energy-management
systems, materials, ratings, codes and incentives.
However, there is no mechanism to link expertise,
which resides in individuals, projects, and
disconnected institutions, to macro-level national
policymaking and then further to the international
context.
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The ministry of power and the ministry of

petroleum and natural gas jointly released three
new energy-efficiency initiatives, which are now
part of various programmes to advance energy
saving in buildings across the country. These include
programmes for rating energy usage of diesel
generators and hospital buildings, and design
guidelines for energy efficiency in multi-storey
residential buildings. Despite this, however, the
country is without a clear strategy that links
building energy use, which already accounts for
more than 30 per cent of the economys electricity
consumption, with its larger development, energy
and climate change plan.
There is little ambiguity about the

unprecedented growth expected in real estate and
infrastructure in the next two decades. The
initiatives, which were unveiled in early September,
point to the increasing part that buildings play in
Indias energy consumption. As calculated in 2010,
a staggering two-thirds of commercial and highrise residential buildings that will exist in 2030 are
yet to be built. Such development is juxtaposed
with two looming and inter-related questions: what
will Indias energy strategy be in light of the
extraordinary power demand and urbanisation; and
what will its response be to the considerable threat
of climate change to its development agenda?
Within this context, how India strategises, develops
and implements its position on energy efficiency in
buildings could be pivotal in responding to these
questions. So far, there is little evidence that such
a strategy is being considered. What exists, instead,
is a narrative that disguises some of the deeper
structural issues at play.
The asymmetry of knowledge has resulted in

low levels of awareness across stakeholders. Real
estate developers are largely unaware about market
advantages or regulatory incentives that promote
efficiency. End users are unfamiliar with the
monetary and environmental benefits from an
efficient space. There is also a deficit in skilled
professionals who are trained to design for,
implement and monitor the performance of
efficiency measures. On the financial side, banks
have a limited understanding of this new market
for efficient technologies and energy-service
companies and instead associate financial risk with
investments. This attitude permeates to developers
and end users, making them reluctant to invest or
change behaviour patterns. Lastly, state and
regulatory actors have a notion of energy efficiency
that is divorced from macro-level co-benefits of
energy security and greenhouse gas reductions. A
complex relationship between energy and real estate
thus exists, which manifests itself as a gridlock for
energy efficiency, in spite of the latter being a winwin strategy for all.
The dominant reasoning for the slow pace of

building efficiency adoption is considered to be the
high upfront investment and a misalignment of
incentives. All of this is true. Energy efficiency costs
more at the time of purchase. It also pays for itself
over the operational lifetime of the building, with
paybacks largely accruing less than five years after
construction. However, for non-owner-occupied
buildings, while the developer invests in the
efficiency measures, it is the tenant who reaps the
economic savings, taking away the incentive for
the initial investment.
Such a crisis in the knowledge infrastructure is

coupled with a lack of political will to ascertain
efficiency goals at the national and state levels, and
the actual capability of implementing them.
Institutional arrangements have also led to a
fragmentation of responsibility. Since buildings come
under the purview of Indias concurrent list, the
Centre determines the regulatory framework for
building energy code notification. But its
enforcement takes place under local municipal laws.
Further, since India is a federal polity, the Centre
does not have the power to mandate states to
implement energy-efficiency targets.
The story, however, is not just about who

benefits from energy saving. Rather, it is embedded
in the larger political, technical and institutional
Laying the foundation for a buildings efficiency

strategy will involve rethinking the approach taken
so far. Our planning hitherto has followed a top-
[31]
down technocratic and economic approach to

increasing efficiency adoption. Taking a deeper look
at existing narratives and underlying structures is
essential to transform how one of Indias most
important power consuming and rapidly growing
sectors uses energy. Without doing so, we will fail

to bridge and further our development, energy and
climate change debate.
INDIAS FAST POWER

neighbours, third, with the five permanent
members of the United Nations Security Council
(P-5) and, finally, Indias most important economic
and strategic partners, led now by Japan and
including Australia, Brazil, South Africa and
Singapore. Within its first 100 days in office, the
Modi government has engaged all.
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Wrapping up an account of the Narendra Modi

governments foreign policy activism in its first
hundred days in office, External Affairs Minister
Sushma Swaraj claimed last week that Indian
diplomacy had moved into high gear with its fasttrack diplomacy. The foreign ministrys public
diplomacy division has published a colourful
booklet filled with photographic evidence of the
governments impressive global engagement in the
past three months.
In claiming credit for this diplomatic activism,

the foreign minister has drawn attention to a new
facet of power in the contemporary world, which
John Chipman of the International Institute for
Strategic Studies (IISS) explored in an essay for the
Munich Security Conference of 2013. Students of
international relations and diplomacy are familiar
with Joseph Nyes concept of hard power and soft
power as well as Hillary Clintons smart power.
Chipman suggested, on more recent evidence,
that a nation states ability to influence
developments in an increasingly complex and fastchanging world, other things being equal, is
determined by the speed of its diplomacy. Thus,
proposed Chipman, fast power matters too.
While hard power and soft power are necessary

attributes of sustainable power projection by nation
states, smart and fast power can help nations, big
and small, find their way through or adapt to
complex and rapidly changing strategic
environments. By acting fast, the Modi
government can claim it has more than neutralised,
in a short period of time, the negative impact of its
predecessors months of inaction. While critics and
cynics may dismiss this activism as nothing more
than photo-ops and collecting flying miles, a la
Hillary Clinton (the most travelled foreign minister
in history), the MEAs fast-track diplomacy
booklet is indeed an impressive document, in that
it shows clarity of purpose in all this speedy
activism.
The booklet itself draws attention to four
different categories of diplomatic engagement by
Modi and Swaraj: first, with South Asian
neighbours, second, with East and West Asian
[32]
Swarajs last port of call at the end of the 100

days was, interestingly, Bahrain. This writer was
in Bahrain watching Swaraj manoeuvre her way
through the increasingly complex and charged
West Asian diplomatic minefield. While Swarajs
Bahraini hosts were delighted, many West Asia
watchers raised their eyebrows, speculating on the
significance of her choice.
Recall the fact that the first foreign visitor Swaraj
met, apart from the South Asian and Indian Ocean
heads of government invited to the Modi
governments swearing-in ceremony, was the
foreign minister of Oman, another West Asian
neighbour. With its wide-ranging economic,
political and military relations, Oman is an
important neighbouring country. Bahrain, however,
has not had the same salience in Indian foreign
policy till recently, despite the long history of ties
between India and the island kingdom (the rupee
was the official currency of Bahrain till the Bahraini
dinar was launched in the mid-1960s), and the
large presence of people of Indian origin.
Bahrain, it seems, has acquired new clout in
the fast-changing strategic environment of West
Asia. As a Shia-majority nation with a minority
Sunni ruling elite, stuck between the regions big
powers a Sunni Saudi Arabia and a Shia Iran
and as host to the USs Fifth Fleet, Bahrain has
understood that it has the potential to emerge as a
regional Switzerland and Singapore woven
together. A politically neutral territory, keeping a
safe distance from the sectarian rivalry of regional
powers, and a business and financial hub, offering
security of life and investment.
In what way, then, does Bahrain fit into Indias
emerging West Asian diplomacy? The first sign of
the new Indian thinking was, in fact, made visible
during the last months of the Manmohan Singh
government when then External Affairs Minister

Salman Khurshid chose Bahrain as the venue for a
regional conference of Indian ambassadors to the
Gulf. By convening a meeting of Indias ambassadors
to the region on the sidelines of the annual IISS
conference of defence and foreign ministers, the
Manama Dialogue, in December 2013, India
signalled to the regions rivals that it would choose
a path of regional non-alignment.
The BJP government has also had no difficulty

in letting everyone know that maintaining good
and strategic relations with Israel will not come in
the way of seeking better relations with Saudi
Arabia, Iran, Iraq and the Gulf states. With China
reducing its dependence on Gulf oil and gas,
plugging into Central Asian and Russian sources,
and the US increasingly energy self-sufficient, it is
India and other East Asian economies that will
remain critically dependent on West Asian energy.
India also has millions of productive workers living
there and remitting billions home every year.
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Indias West Asian non-alignment meant that

it would pursue good relations with all regional
players, namely, Iran, Israel, Saudi Arabia, the
United Arab Emirates (Indias biggest trade partner)
and the US. There was no better place for the
regions ambassadors to meet to discuss this policy
than Bahrain.
Uttar Pradesh, Telangana and a few other pockets,

the BJP seems to have adopted a policy of nonalignment between Sunnis and Shias, if anything,
tilting a bit towards various Muslim minorities
persecuted in Sunni-majority countries.
The Modi government has taken one more step.

It has made it clear to all regional players that it
would not like to get drawn into the Muslim
worlds sectarian conflicts. India has, so far, been
fortunate that such sectarian conflict has not
entered Muslim politics here. While former defence
minister A.K.
Antony explained away his governments
decision to establish defence ties with Saudi Arabia
in sectarian terms, claiming that Kerala had more
Sunni than Shia Muslims, and the Congress
repeatedly explained away Indian friendship with
Iran in terms of the importance of the Shia vote in
However, while India seeks stability in the

region and feels Western, particularly US, policies
are in fact destabilising West Asia, it has not done
enough on its own to help stabilise a region of
great strategic importance to it. West Asia seeks
Indian hard, soft, smart and fast power projection.
Having enunciated the doctrine of high-speed
diplomacy, the Modi government now needs the
intellectual and administrative wherewithal to think
and act fast.
BRITAIN ON THE BRINK
Its the passionate poetry of freedom versus the

cold prose of facts, the sweetness of yes against
a churlish no. On September 18, more than 40
lakh Scottish voters go to a poll on whether to
leave the United Kingdom and become an
independent nation. The stakes for both are
existential. A poll of opinion polls on September 10
put the break-up vote at 48 per cent and unity
vote at 52 per cent. But on the ground, the razors
edge is sharper.
Blame the existence of the referendum on

glorious British democracy and a little bit of
smugness. Self-rule powers have been devolved to
Scotland for decades, giving it a parliament. Yet
the Scots voted the separatist Scottish National Party
(SNP) to power in 2011. This implied that a sizeable
number of people in Scotland wanted to leave
Britain, and British Prime Minister David Cameron
had little choice but to give them a clear vote.
Cameron could go down in history as the PM who
presided over the end of the 300-year-old union,

but when the referendum was announced in late
2012, everyone thought it was a good idea. Why
would they leave, anyway?
But with the yes campaign gaining ground,
the unthinkable might occur, and it has to be asked:
What happens if Scotland votes yes? Shock and
horror and casualties all around. A huge
constitutional logjam lasting years. Actual
independence would come only in 2016; in between,
there is the British general election in May 2015, in
which Scots would still vote and send 59 members
of parliament to London. In the current parliament,
41 are Labour MPs and only one is from the ruling
Conservative Party. If Labour comes to power, its
government could fall in May 2016, when Scottish
MPs leave, forcing new polls. More crucially, would
this lame duck government have the legitimacy to
negotiate the terms of separation? If not, who
would? In any case, Camerons career is probably
[33]
over, as perhaps of Labour leader Ed Miliband.
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SNP leader and Scottish First Minister Alex

Salmond has all the romance of a freedom fighter.
He says he will keep the queen and the pound
sterling, and never hassles himself with facts. Well,
the queen looks unlikely and the pound impossible.
There will be no currency union with England and
a one-sided use of the pound means free Scotland
will have no freedom to run its monetary policy
and, indeed, its economy. Then there is the certainty
of massive flight of capital and business to England.
Welfare and borrowing costs will be crippling, and
a future like Greece or Spain in deep debt looms.
So why do they want to leave? Its about history

and kicking the Tories. Salmond has sold freedom
as a lollipop, a sweet to be enjoyed on its own
merit. He represents the socialist heart of Scotland
that has always dreamed of freedom from England,
the land of Tories who practise the nasty capitalism
of private healthcare and inherited wealth. Bile was
brewing from Margaret Thatchers era in the 1980s
and the betrayal of socialist values by Labours
Tony Blair pushed the Scots to the edge. When the
Tories came to power in 2010, many in Scotland
just snapped.
Also, once Scotland leaves the UK, entry into

the EU is not automatic and would take years, if
at all. It also cannot be part of Nato, as the
resolution to become nuclear-free means the new
Scotland will be a liability. With a mere 50 lakh
people, Scotland would be in the same league as
Slovakia and Croatia, but without the lovely
sunshine. While adrift, it will still need to build
every state institution from scratch, which will cost
billions.
Even if its a no, Britain lives but not as we

know it. More powers in areas of taxation and
spending are already coming Scotlands way if it
stays. But other nations within the UK especially
England, which has over 80 per cent of the six
crore population are bound to ask for freedom
from Scotland. In the current system, Scottish MPs
vote on English legislation but not the other way
round. That and a lot more has to change. A loose
union turns looser.
ON TRIAL, THE CRIMINAL JUSTICE SYSTEM
In a recent landmark order in Bhim Singh vs

Union of India, the Supreme Court directed the
fast-tracking of criminal cases, and the release of
undertrial prisoners who had completed at least
half their maximum prison term pursuant to Section
436A of the Code of Criminal Procedure (CrPC).
Bringing attention to the plight of those languishing
in prison while awaiting trial, the courts order
coincides with the Narendra Modi governments
mandate to decongest prisons by releasing
undertrials.
While laudable, these measures reiterate

previous judicial directives (SC Legal Aid
Committee vs UoI; Rama Murthy vs State of
Karnataka) and Law Commission reports (78th and
239th). Releasing undertrials is a short-term
solution; as explained below, it does not address
the underlying causes for the high proportion of
undertrials in India.
Pre-trial detention is a real problem. More than
66 per cent of Indias prisoners are undertrials,
which is over twice the global average of 32 per
cent. Of these 2,54,857 undertrials, more than 2,000
have been in prison for over five years.
Overburdened by the flood of arrestees (nearly 75
lakh were arrested in 2012, according to the
National Crime Records Bureau), prisons have
[34]
experienced an increase in the number of

undertrials and overcrowding. The average
occupancy rate in Indias prisons is 112.2 per cent,
with the situation particularly dire in states such
as Chhattisgarh (252.6 per cent) and Delhi (193.8
per cent).
Unfortunately, reforms have favoured
measurable quick fixes fast-track courts and
greater judge-population/ police-population ratios
without attempting to understand the high
incidence of pre-trial detention. This can be
explained by, first, criminal justice functionaries
(police, prosecutors, judges and prison officials),
who are often overworked, understaffed and
underpaid; second, the socio-economic profile of
the undertrials, which affects their ability to post
bail; and finally, an ineffective legal aid system.
First, India has one of the lowest policepopulation ratios, of 131.1 officers per 1,00,000
population (against the UN norms of 222).
Corruption is also an endemic problem; in 2013,
Transparency International found that 62 per cent
people reported paying bribes during their
interactions with the police. Misaligned incentives
to arrest persons (for example, to demonstrate the
progress of investigations) have resulted in 60 per
cent of all arrests being unnecessary or
unjustified.
What are the solutions? Unfortunately, there

are no easy answers. Simply sanctioning an increase
in the judge-population ratio does not account for
the existing reality of 4,564 judicial vacancies. Nor
does it consider the work these criminal justice
functionaries are doing; police officers often spend
their time on law and order and VIP security,
instead of criminal investigation. Thus, there are
three officers for every protected person, but only
one officer for 761 common citizens. Similarly, fasttrack courts do not resolve the underlying structural
problems since they function within the same
procedural framework as regular courts.
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Prosecutors lack basic facilities, such as access

to legal databases, research and administrative
assistants. The Delhi High Court, in a March 2014
order, noted that prosecutors laptop allowances
exclude payment for internet facilities and legal
databases; they do not have exclusive office space
in courts and lose files because of insufficient file
space. As the court observed, one of the
predominant cause(s) for delay in disposal of
criminal case is due to shortage of public
prosecutors.
Third, the ineffectiveness of the existing legal

aid system prevents these undertrials from being
able to access statutory and constitutionally
guaranteed legal aid. Poverty and low legal literacy
makes many undertrials ignorant about the benefits
afforded by Section 436A and their right to legal
aid. Further, inadequate coordination among the
legal services authorities and prison officials results
in a failure to identify those requiring legal aid.
India has around 15 judges per million

population, despite the 2002 Supreme Court order,
in All India Judges Association, directing an
increase to 50 judges per million by 2007. But the
bigger problem is the backlog of more than three
crore cases, with the SC itself currently hearing
64,000 cases. Delays in the conclusion of trials often
result in pre-trial detention being used a punitive
measure, causing denial of bail. They also spawn
informal justice measures, such as plea-bargaining
or jail adalats, where fewer procedural safeguards
nudge the accused to plead guilty to escape
detention in lieu of the time already served.
Prison officials are one of the most important,
and often the most neglected, part of the criminal
justice system. They regularly review the legal
status of undertrials to determine whether they
have spent enough time in custody to warrant
release under Section 436A. Unfortunately, on
average, only 66.3 per cent of the sanctioned posts
are filled, with Bihar having only 21.1 per cent of
the sanctioned prison official strength.
Second, the inability to post bail arises partly

due to the profile of undertrials. Some two-thirds
are SCs/ STs/ OBCs and three-fourths are illiterate
or have studied till below Class X. Low education
levels and economic activity mean lower incomes,
making it harder to afford bail.
Reforms should be oriented towards bringing

criminal justice functionaries together and starting
a conversation. Instead of merely announcing new
initiatives, emphasis should be on ensuring the
implementation of existing provisions, such as
regularising the functioning of the Undertrial and
Periodic Review Committees. Finally, efforts should
focus on improving data collection and digitisation,
and on mapping the existing reform landscape to
prevent duplication of work.
The SC order and the government decision are
steps in the right direction. Nevertheless, a lot more
needs to be done to mainstream the prison reform
agenda to ensure that our undertrial prison
population is commensurate with, or below, the
global average.
CHANGING TEAM STATE
Jawaharlal Nehru hoped that his legacy would

be 40 crore people capable of ruling themselves. As
the unrealistic expectations from the first 100 days
of the NDA calm down, Id like to make the case
that the government should take the long view and
try to create a legacy that makes an impact: four
lakh civil servants who are effective, accountable
and bold. A more efficient and adventurous state
would need radical changes to the policy on human
capital architecture. Currently, this policy ensures
that our non-elected senior policymakers are mostly

permanent, close to retirement, and share thought
worlds.
Legacies are complicated concepts and its
probably useful to revisit two views of history. The
first view, summed up by Thomas Carlyle, believes
that the history of the world is the biography of
great men. The second view, championed by Leo
Tolstoy, believes that there is no such thing as great
men, only great times. For me, the second view is
[35]
people are still idealistic. The case for diversity is

best illustrated anecdotally for instance, Nandan
Nilekani got Aadhaar going because of his decades
in technology. The research clearly shows that
effective problem-solving synthesises diverse
thought worlds.
What does this entail? It needs combining the
various administrative reform commission
recommendations with the Seventh Pay
Commission. Replacing todays objective but
ineffective performance management 95 per cent
are rated outstanding with sharper and earlier
differentiation. Figuring out how to give top jobs
to 45-year-olds rather than 58-year-olds. Filling all
posts above joint secretary level from a UPSC
shortlist based on open advertisements. Emulating
the lieutenant colonel threshold of the army, so
that most civil servants retire early or peak as joint
secretary equivalents if they are not shortlisted for
moving up. Appointing 25 per cent of our
ambassadors from outside the IFS and having direct
political appointees make up 10 per cent of the
secretaries. Reducing the number and size of
Central ministries two-thirds of IAS officers in
Delhi work on state subjects. Barring career civil
servants from regulatory posts for five years after
retirement. Creating parliamentary oversight or
confirmation for 40 key political appointments. Of
course, all political appointees, like the Roman
general, Cincinnatus, who was summoned from
his farm to deal with an enemy attack but returned
to the plough once his duty was done, would have
tenures that were co-terminus with the
government. All governors, political appointees,
heads of IRDA, Sebi, Trai, NDMA, CCI, Cerc etc,
would resign before a new government is sworn
in. Does US policymaking really suffer when more
than 4,000 people resign from public policy roles
as a new president takes over in Washington? Not
all resignations are accepted but its wonderful that
they are offered.
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too fatalistic, because leaders like Gandhi, Abraham

Lincoln, Akbar and Ranjit Singh clearly bent the
arc of history. But accomplishing great things is a
team sport. The leaders mentioned above wouldnt
have accomplished what they did without what
historian Doris Kearns Goodwin calls a team of
rivals; Nehru, Sardar Patel and Abul Kalam Azad
for Gandhi, Edward Bates, Salmon Chase and
William Seward for Lincoln, Todar Mal, Man Singh,
and Birbal for Akbar, Zorawar Singh, Hari Singh
Nalwa and Fakeer Azizuddin for Ranjit Singh.
Nehrus legacy, redeemed not wholly or in full
measure but very substantially, did lead to a nation
that governs itself. But, according to biographer S.
Gopal, Nehru regretted not being able to dismantle
the administrative system set up by the British. It
is a system for centralisation, control and
suppressing innovation that is inappropriate for
todays wicked problems.
It may be useful to learn from technology

companies in Silicon Valley, the hub of using
adventurous, innovative and curious human capital
to solve wicked problems. Their first genius is
realising that the team you choose is the company
you create: an A team with a B opportunity is
preferred over a B team with an A opportunity.
Their second genius is a bias for youth: wicked
problems need a fresh set of eyes not crushed by
history or how things are done. The French
statesman, Georges Clemenceau, once said that war
was too important to be left to generals, and the
third genius of the Silicon Valley companies is
ensuring that hyper-intelligent engineers are
complemented by narrative-creating marketers and
tight-fisted financial controllers. Their final genius
lies in leadership transition, as companies shift from
the hormonal exuberance of adolescence to the
cruising speed of adulthood. Founders step back,
or are forced to step back, and are replaced by
adult supervision. All four have interesting
implications but first lets look at the case for less
permanence, higher diversity and more youth.
The rationale for a permanent civil service is
that it ensures a non-politically aligned cadre with
an institutional memory. But does the de jure square
with the de facto? Are they really independent?
Organisation memory is not only oversold most
civil servants dont even meet their successors to
hand over responsibility but its desirability is
also questionable when you want radical change.
Younger leaders would tackle timidity; longer
tenures allow appointees to take more risk. Youth
has more time to recover from mistakes and younger
[36]
This government has a policy window

described by political scientist John Kingdon as that
moment when the three streams, problems, policy
and politics, converge. It also clearly believes, like
Thomas Hobbes, that the state is an important
antidote to nasty, brutish and short lives. Pundits
are already speculating whether this governments
first term will be remembered as BJP1, NDA2 or
UPA3. But it must pay no attention to the weather
of the moment and remember that Hobbes named
the state Leviathan after a biblical monster. And
that re-election and making history lie in
policy outcomes that need radical surgery to the

architecture of Indias four lakh-strong non-elected
policymaking Leviathan.
HINDI-CHINI 2.0
with you. He then told us about the developmental
trajectory he expected China to trace. And that is
indeed the way China developed. That country has
travelled a lot since then. My point is that China
and India are not just nation states, they are
civilisations, and we have to learn to compete and
cooperate in spite of our conflicts.
Personally, Xis visit brings back memories of

an earlier event. Then Chinese President Jiang
Zemin visited India in 1996, and I was the Indian
minister-in-attendance. Jiang was a technocrat. Like
most high-level leaders of the socialist world, he
was well informed about societal developments. He
asked me what I thought of Francis Fukuyama. I
told him Fukuyama had got it all wrong. How
could history come to an end just when it was
China and Indias turn to take centrestage? At his
farewell press conference, Jiang mentioned that he
had discussed cultural matters and chaos theory
with me.
While on a visit to western China, I observed

that red chillies, which came from Gondal, were in
great demand in local supermarkets. In fact, I later
learnt that sometimes the Chinese buy the entire
crop. In western China, even though religion is not
favoured by the socialist government, there was a
Buddhist revival. So, there is a high demand for
vegetarian food. But vegetarian Chinese food of
the Sichuan variety requires a great deal of chilli.
I told my hosts that with the Sardar Sarovar project,
we could meet any agricultural demand. The scope
for cooperation between economies growing at more
than 6 per cent per year (it is to be hoped India
does so) is limitless.
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The visit of Chinese President Xi Jinping is an

important event. Unlike other countries, which
want to cooperate with us because they have
business interests here, China wants to cooperate
and compete with us at the same time. China and
India are civilisations, and this fact lends complexity
to diplomacy and trade.
Simply put, foreign policy is an attempt to

extend the national pursuit of certain objectives to
the global plane. The Chinese, like others, are very
focused on this. In August 1982, I was asked to be
deputy leader of the first large official delegation
to China since the early-Sixties. P.N. Haksar had
written a non-paper with a senior Chinese colleague
after a series of meetings in hill stations in India
and China. It argued that trade and contact
between Indian and Chinese people should resume.
This first delegation comprised social scientists, led
by G. Parthasarathy, who, apart from being a
formidable diplomat, was the first vice chancellor
of Jawaharlal Nehru University and was the
chairman of the Indian Council of Social Science
Research (ICSSR) at the time. Back then, I was on
deputation to Delhi, but my parent institution, the
Sardar Patel Institute of Economic and Social
Research at Thaltej, had just become a national
ICSSR institute on the centenary of Sardar Patels
birth.
When we reached Beijing, we were told that
the great Deng Xiaoping would meet us for 10
minutes. This was a great honour and the meeting
in the famous Great Hall of the People was quite
an event. Deng began with we are now opening,
but you already know them, referring to Western
countries. Our experience is that the richer they
are, the meaner they are, so we want to cooperate
We need to understand the explosion of smallscale industry in China. It is competitive, not

because of subsidies but because of the countrys
solid infrastructure. A Chinese business that
competes with small-scale firms in India pays a
pittance for regular and assured power supply.
Chinas highways, used to carry its exports to
markets, are first rate, too. In fact, what we need
to learn from China is not the art of running a
small firm well, but the art of supporting a small
business.
At the beginning of this century, I was asked to
project India 2020 for the United Nations, taking
sustainability concerns on board. A colleague in
China was to do the same. The Goldman Sachs
numbers only came later. Since our income levels
would reach a quarter of those in the US by 2020,
the spread of energy-consuming technology like air
conditioners was inevitable. But we also pointed
out that the world would end if we did not worry
about sustainability. China was already burning
two billion tonnes of coal, our projected demand
for 2020, at the beginning of this century. But this
cannot go on. Not because there isnt enough coal
but because our lungs wont be able to take it.
China and India should show the world what they
can do together.
[37]
RBI, WE HAVE A PROBLEM

Phillips curve, that is, output-inflation trade-offs.
This thinking has the following history. Money
supply growth as a cause of either inflation or
output was dispensed with in the 1980s in the US,
and a decade or so later in West Europe and Japan.
The Phillips curve stopped being operational in
the 1980s. Regarding interest rate policy, the
evidence seems to be that it matters somewhat for
output, but not at all for inflation. How else do
you explain the desperation with which Western
central bankers are trying to increase the stubbornly
persistent low inflation rate in their economies?
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In its presentation to the G-20, the IMF boldly

proclaims the following: In India, more efforts are
needed to continue reducing stubbornly high
inflation and the large fiscal deficit Sustainably
lowering inflation will also require further increases
in the policy rate. And RBI Governor Raghuram
Rajan strongly hinted that it was too early to cut
rates because of persistently high inflation and
that he would not cut rates until the battle against
inflation was won.
As is perhaps customary for the IMF, little
evidence is provided for their extravagant
conclusions; and as alluded to in the earlier article
(Where monetary policy is irrelevant, IE, September
13), scant proof has been provided by the RBI
about the causes and/ or the persistence of high
inflation in India. Lot of talk, yes. Evidence and
reasoned argument, no.
There is little doubt that inflation in India has
been high and equally little doubt that inflation is
now in a steady decline. The question remains: what
has monetary policy, specifically in the form of a
repo rate cut or raise, got to do with either
increasing or declining inflation in India?
In the September 13 article, I had pointed to a
structural cause for persistently high inflation in
India over the last eight years or so high
procurement prices (or minimum support prices,
MSP) for foodgrains. Between 2006-12, the MSP
rose at an average of 12.1 per cent for all food
crops, including rice and wheat. To put this in
perspective, farm prices in 2012 were double their
level in 2005. Average non-food CPI inflation
during this time period was at a much-lower
annual rate of 8 per cent. Procurement prices act
with a one-year lag and, given that these prices
have risen at an average of less than 5 per cent
over the last two years, it appears that this
structural cause for persistently high inflation has
a considerably diminished presence today.
What are the other causes of inflation that the

RBI/ IMF might be thinking about (might is the
operative word because, try as I might, I havent
found an explanation from them about either the
cause of the high inflation or the recent decline,
especially in 2014)?
For long, central bankers had us believe that
monetary policy (either money supply growth or
short-term repo rates) could affect both growth and
inflation, as evidenced by the discussion of the
[38]
If monetary policy is ineffective as a weapon

against inflation in both developed and developing
economies (the September 13 article documented
this ineffectiveness for India), what are the
gentlemen at the RBI and IMF collectively smoking?
Their argument is that you need a tighter monetary
policy to bring down inflation. But if (a) monetary
policy does not affect inflation, and (b) for structural
reasons (read MSP), inflation has declined, then a
tightening will yield as much inflation reduction as
loosening would increase it, that is, zilch. On the
other hand, monetary policy can and does affect
output without affecting inflation. So why not cut
rates?
One can only speculate on the reasons behind
the traditional, outdated thinking at both the RBI
and IMF. Perhaps, they fear a return of these
outdated inflation drivers. Fiscal deficits are often
thought to be a cause of high inflation, but precious
little evidence exists (scratch that, no empirical
evidence exists) that explains any of the twists, or
turns, of inflation in India. In any case, fiscal
deficits are trending down. We could talk oil prices,
but they are down significantly this year. Of course,
such prices could go up again, but given a slowing
world economy and with the US today as the
largest oil producer, the oil inflation forecast is as
likely to go awry as the prediction that Scotland
would secede from Great Britain.
No matter where one turns, including both the
RBI and the IMF, the recommendation for a more
stable economy (higher growth and lower inflation)
is that India must address supply-side bottlenecks
in infrastructure. As India has begun to do
whether it be labour laws, ease of doing business,
land acquisition concerns, or tax bottlenecks. This
will help growth and inflation.
There is another explanation. Many analysts
believe that inflation is cyclical, not structural, and

this perhaps causes them (and the RBI/ IMF?) to
miss the macro forest for the micro trees. As
inflation has steadily declined in India, the experts
have revised their forecasts down, but say it is only
a matter of time before cyclical factors kick in to
generate higher inflation. But wait a minute: India
had the highest inflation in the last six years, and
yet had the lowest GDP growth rate. So, why
should an improvement in real activity generate
inflation?
The RBI, like the US Federal Reserve, has a

mandate for both growth and price stability. To
be sure, it makes sense that policy change only
occur once one is sure that inflation is under
control. But how does one know when the eureka
moment is? As a central banker, one needs to be
cautious. However, does the RBI, and for that
matter IMF bureaucrats, realise that there is a cost
to the economy of delaying a rate cut and hence
holding back growth? Possibly a large cost, since
the economy in question has been operating
considerably below par for the last three years.
Maybe, as some argue, a rate cut is not really that
important because supply-side problems are the
major ailment of the Indian economy. If true, then
why not cut rates, since rates dont matter anyway
and they might just help!
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Let us look at all the accumulated evidence on

the trend of inflation in India since 2000. You judge
for yourself whether inflation is a big threat to India
today, as opposed to a year ago. The table presents
estimates for several indicators of inflation
according to two different methods year-on-year
preferred by the RBI, and SAAR, preferred by most
analysts and central bankers outside of India. It
covers four sub-periods over the last 14 years.
that figure will be closer to 7 per cent. Non-food

CPI for the first eight months of 2014 is registering
7.2 per cent inflation, down from an average 9.2
per cent in 2009-13. Both WPI and core WPI
(SAAR) are registering a low 4 per cent rate.
No matter what the indicator, inflation is

significantly down in 2014. The RBI has a CPI target
of 8 per cent for December 2014; it is likely that
AND THE NOES HAVE IT
The centre has held. By a 10-point margin

larger than expected on a vast 86 per cent
turnout, Scotland voted to stay in its troubled
marriage to the United Kingdom. As David
Cameron put it, the vote was a triumph for
democratic politics, offering a peaceful model for
prospective secessionists across Europe and the
world. But though the panicked doom-and-gloom
scenarios over the fate of the pound and the queen
have been rendered irrelevant, the no vote will
reverberate almost as noisily across the UK as a
yes would have.
This victory for the union cannot be read as a

vote for no change. Last week, when a YouGov
poll put yes ahead for the first time, all
Westminster politicians, from Cameron to Labour
leader Ed Miliband, scurried north to vow to
devolve more powers to Edinburgh. A sidelined
Gordon Brown, who preceded Cameron as British
PM, emerged as an unlikely hero for the unionists.
But the race was never expected to get so close,
and Cameron faces an insurrection from those
within his party who believe that the cost of the
no vote is too high.
He must now negotiate a tricky middle ground
between the emergency sweeteners he and Brown
promised the Scots and disgruntled Tory

backbenchers, while addressing the question of
devolution in England, Wales and Northern Ireland.
He came out swinging on Friday morning,
honouring Browns timetable for a detailed
devolution package though clarifying that
constitutional reforms would take place only after
the next general election, and alongside similar
measures in England. Cameron also threw down
the gauntlet to the Labour opposition by addressing
the so-called West Lothian question: Should Scottish
MPs at Westminster continue to vote on devolved
issues as they affect England when English MPs
have no such say at Holyrood? Fashioning
constitutional change is bound to be an exercise
rife with difficulties, not least of which is reconciling
different ideas of what devolution in areas like tax,
spending and welfare should look like.
But Cameron must cobble together a consensus
quickly, as a restive Scotland (and England, and
Wales) demand more from a London elite
increasingly seen to be out of touch. The vein of
frustration the SNP and the yes campaign tapped
into has not been exorcised.
[39]
STATE AND UTOPIA

and left between India and Pakistan and Hasina is
hardly loved in Pakistan for killing a Jamaat leader.
The country has become considerably radical
Islamic, which Hasina should have realised; her
worry-beads should have told her. India is
involved once again if you consider that Nawaz
Sharif in Islamabad got on the wrong side of the
GHQ because of his new India policy and then got
snagged in the dharna politics he cant crush
under an edict of restraint from you know who.
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Are democracies collapsing in Asia? Out of the

four that wilted recently, three are Muslim majority.
Thailand went under when the Thai army, inured
to the job, took over. Bangladesh, after holding
elections in January this year, is trying to digest a
three-fourths parliamentary majority of the winning
party in a famously polarised electorate.
Afghanistan too held its unique election this year.
After rumours of rigging, its two front-running
politicians fell apart. Was the polling free of
Afghanistans notorious ethnic north-south divide?
Most observers thought it was. In the second-round
run-off in August, it emerged that it was not.
In Pakistan, allegations of rigging after the May

2013 polls were muffled. But a year later, they rose
to a crescendo in the middle of an ill-concealed
recrudescence of the states old disease: a bad civilmilitary equation. The media was polarised this
time, not the political parties, but with the same
effect. Regional contagion was proved when
contestants referred to the Bangladesh option,
which means the army takes over.
Thailands political party in government under
Prime Minister Yingluck Shinawatra was a regular
winner in elections no one called fake. However,
violent street agitation brought her government
down. Disturbance was allowed long enough, with
accompanying economic damage to a national
economy second only to Indonesias in the region,
before the army stepped in and reflexively
announced a period of caretaker governance.
Bangladesh is hounded by violence emanating

from its political bisection between two charismatic
women, secular Sheikh Hasina Wajed and
rightwing Khaleda Zia, one the daughter of the
founder of the nation, Sheikh Mujibur Rahman,
and the other the wife of a general named Ziaur
Rahman who took over soon after martial law was
declared.
Bangladesh is subject to extreme passions,
which the South Asian man is a martyr to. One
half of the country hates Pakistan, which is normal,
according to the narrative of its genesis: a difficult
birth made tougher by Pakistan. The other half
hates India because of its upper riparian
meanness. The January election was boycotted and
there was violence in response to Hasinas hanging
of a Jamaat-e-Islami leader in December.
In a way, India is in the works in all botched

South Asian elections. Bangladesh swishes right
[40]
And in Afghanistan, the election is in trouble

because the next Indo-Pakistan proxy war is going
to be fought there after the US-Nato withdrawal
later this year. The north-south polarisation of
Afghanistan has been worsened by a swing of more
than a million votes away from the half-Tajik, halfPakhtun Abdullah Abdullah to his Pakhtun rival
Ashraf Ghani in the second-round run-off. The
election suddenly went ethnic, the apologists say.
Is democracy in trouble? Bangladesh came into
being through a revolt because democracy had been
bent out of shape by Pakistani generals. But how
can you explain the rise of the generals in
Bangladesh? They proved more lethal because the
political parties they spawned proved more
durable.
Ironically, a jihadi Pakistan has turned to a
democratic consensus with unrealistic vengeance.
People want democracy, and its two-party political
culture is determined to hold on to it, despite a
strong GHQ understandably beefy because of the
war against terror and the national narrative
against India. Pakistanis openly admire India for
holding on to democracy: columnists refer enviously
to the civilised way the Indian politicians accept
election results after losing.
Democracy may be losing out in the way it is
being defined these days. There was a time when
the world, reeling under periods of utopian
despotism, accepted it as remedial dystopia. We all
grew up in South Asia saying it is not perfect, but
it is the best thing to have. If it goes wrong, have
more of it, we said. Democracy went uncontested
when presented as a leftwing package of equality
as mentioned in our constitutions. Then economics
walked in and wrecked the landscape of low
growth and red tape. Everybody embraced
capitalism and poverty alleviation became the
new slogan.
But Muslims of the world changed after
nationalist dictatorships collapsed in the Middle

East. Instead of advancing to dystopian democracy,
Muslims mixed it with the equality enjoined by
religion, based on a city-state direct-rule utopia.
Capitalism, predicated on inequality, spoiled the
debate even more.
It is often said democracy has its variations.

Some variations simply dont let it work. Absent its
modern essentials, democracy tends to wobble.
Capitalism bothers people because it is based on
inequality. Leftwing ideologues want to tax the
rich and subsidise the poor, which often doesnt
work.
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High growth alleviates poverty but gives us its

rich-poor gap. When you are poor, you are OK;
after becoming middle class, you agitate for equality.
You talk of Sweden, as Imran Khan does, without
looking into what social security has done to
northern European economies. (Yet, Thomas Piketty
challenges Francis Fukuyama, who ended history,
by positing liberal-capitalist democracy as the
final paradigm.)
Goodness is defined on the basis of religious rituals.

In the Khyber tribal agency, a warlord called
Mangal Bagh coerces you into being good by
burning your house if you dont say namaz five
times a day in a mosque.This is the amr (enforce
good) of Islamic law. The other tenet, called nahi
(forbid bad), is democratic and modern, but
becomes discriminatory when the law of evidence
is applied to women and non-Muslims. Pakistan
has both amr and nahi. It cant protest much
about the democracy it cant have.
The other uncomfortable fact is the existence of

states in the West where capitalism is supposed to
have trounced the Marxist dream. High growth in
South Asia doesnt result in the state becoming like
your mother: maa kay jaisi. It cant subsidise; it
cant afford deficits that spread inflation and kill
the rupee.
Under dictatorship, there is no news about

corruption. The attack on democracy comes from
two directions: from those who are fed up with
corruption and those who want utopia. You get
into more trouble if you have democracy, but it is
not secular-liberal. The modern state tries to be
liberal by not insisting on goodness; it punishes
only badness. There is no coercion to be good as
long you are not bad.Articles 62 and 63 in the
constitution of Pakistan want you to be good.
Afghanistan and Pakistan will have more

trouble with religion. Watch Iraq after Saddam
Hussein. Pakistan has internalised it; Kabul too will
follow suit after democracy settles down there. In
Pakistan, challengers Imran Khan and Tahirul
Qadri say what Pakistan has is not democracy.
Both actually attack the economy. What they
promise is utopia.
Democracy is in trouble in Bangladesh, Pakistan
and Afghanistan in varying degrees, threatening
Bangladesh with dysfunction like the other two.
All three happen to be Muslim states.
A VIRTUAL REVOLUTION
TUNE into one of Saudi Arabias television

channels and you are likely to find a stuffy report
praising the government or a sheikh spinning a
dreary sermon. Little wonder that so many Saudis
turn to YouTube and other online broadcasters for
light relief. That has led to the emergence of new
media companies, mainly in the more liberal coastal
city of Jeddah, dedicated to amusing the kingdoms
growing population.
In the glassy offices of UTURN Entertainment,

one such firm, men and abaya-clad women play
table-football and squeeze putty between
commissioning and recording videos for their
YouTube channel. It airs a variety of shows, from
cookery and religious programmes to talk shows
and dramas about relationships between men and
women. UTURN Entertainment now has over
300,000 subscribersnot surprising, seeing that a
recent survey found that Saudis watch an average

of seven YouTube videos a day.
Online videos are not the only fad. There are so
many Twitter users among the 60% of Saudis who
use the internet that the country has the worlds
highest penetration of the microblog; the number
of users rose by 45% between 2012 and 2013. About
8m of the countrys 31m people use Facebook. Email is already pass. If I send my students an
assignment, I have to tweet to tell them to check
their inboxes! says a university professor in the
eastern city of Dhahran.
The youthfulness of the population helps explain
the popularity of social media. The largest number
of users are aged 26 to 34. The countrys repressive
nature means many use Twitter, often
anonymously, as a way to vent their frustrations.
And the social peculiarities of Saudi Arabia account
[41]
for the particularly insatiable appetite of its young

for all things virtual. Unrelated men and women
are forbidden to mix freely and fun is scarce, since
cinemas and alcohol are banned.
The kingdoms ageing rulers will remain loth to

confirm rumours such as those about infighting in
the royal family as the next generation of princes
jostle for power. And they will continue to clamp
down as hard as they can against increasing
political dissent.
On June 25th a court sentenced Fawzan alHarbi, the founder of a human-rights group, to
seven years in jail for disseminating information
harmful to public order, citing a law against
cyber-crime passed in 2007. The government also
uses online activity to gather intelligence. Earlier in
June Human Rights Watch, a New York-based
lobby, said it had tracked spyware being used by
the authorities in Qatif, an eastern province
populated by the minority Shia, who have long
faced discrimination. For good or ill, the kingdoms
appetite for social media knows no bounds.
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Some reckon this makes the virtual world a

socially progressive force, pushing the boundaries.
It is for some. Yet Saudi conservatives and the ruling
family have clambered onto the social-media
bandwagon as quickly as the liberals, and perhaps
in greater numbers. The five most-followed Twitter
accounts are those of clerics. In a patriarchal society
where women must still get permission from a male
guardian to travel, go to the doctor or apply for
university, an overwhelming 87% of Saudi users of
social media are men. Jihadists fighting in Syria
tend to use social media to publish and recruit to
their cause.
earlier this year, the government felt obliged to issue

frequent updates, perhaps under pressure from the
chatter flying around on Twitter and Facebook.
On balance, however, social media are a force

for modernity, albeit at the snails pace preferred
by Saudi Arabias establishment. The rulers cant
hide anything any more, says a student in Riyadh.
For example, when Middle East Respiratory
Syndrome, a deadly virus, broke out in the kingdom
Source: The Economist
SCOTLANDS TRYST WITH DESTINY
On October 27 1995, around 60,000 Canadians

from across the country made their way to Place
du Canada in downtown Montreal to call for
Quebecois to vote No to a sovereign Quebec.
Three days later Quebec residents voted by a wafer
thin majority to remain in Canada: 50.6 per cent
to 49.4 per cent.
Organisers of a rally that took place in Trafalgar
Square, London, this week, will be hoping that the
gathering of several thousands from across the
country (certainly no way close to the numbers
who gathered in Montreal) will spur those crucial
undecided Scots to vote to remain in the United
Kingdom on Thursday.
From 28 per cent in late September 2012, the

Yes to independence campaign has gained
ground rapidly some, including an early
September poll for the Sunday Times, have even
put them slightly ahead of the pro-union Better
Together campaign. Three of the most recent
surveys from the weekend put the No campaign
ahead, but only just, while one for the Sunday
Telegraph gives the Yes campaign an eight point
lead (54 per cent to 46).
[42]
Economy in focus
Emotions abound in the discussion evident

in everything from the heated televised political
debates that took place between the leaders of the
Yes and No campaigns, to the heckling of
politicians, to protests outside the offices of the
BBCs Glasgow offices to protest supposed bias in
favour of the Yes campaign. However, the factor
likely to dominate particularly in the mind of
the still undecided is the economy, and whether
the Yes campaign has managed to do a good
enough job making the economic and business case
for change.
The economic case for an independent Scotland
has, by and large, been drowned out by the huge
attention given to its pitfalls, as viewed by prounionists.
Those arguments have largely hinged around
the uncertainties that would be created for a new
state much of whose architecture and substance
would have to be thrashed out with politicians in
Westminster in the event of a yes vote. What
currency an independent Scotland would use has
been at the centre of the debate. Entering a currency
union with the rest of the UK, is something
Westminster has repeatedly rejected, while the
option of using the pound or pegging to it would

leave it bound by interest rate and policy decisions
made in London.
Other options such as joining the euro, or
creating a currency of its own also leave much
room for uncertainty. In any case, pro-unionists
argue, it would be unlikely that the Bank of
England would be willing to bailout Scottish banks
in the event of a future banking crisis.
The country is also far less dependent on oil

revenues than many suggest: oil accounts for some
10 per cent of tax revenues against over a quarter
for oil states, with industries from food and
beverage to manufacturing and financial services
accounting for a sizable chunk of revenues.
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The economic and regulatory uncertainty that

would be inevitable around the creation of a new
currency has also triggered numerous warnings
about a loss of business from across sectors. The
Royal Bank of Scotland and Lloyds TSB have both
warned that they would shift headquarters south
of the border (though operations would largely
remain the same), while members of Scotlands
shipbuilding industry have raised alarm bells about
what would happen to the sector, given projections
of lower defence spending and naval procurement
in an independent state.
the United Kingdom, there is no certainty that this

couldnt happen following negotiations with
Westminster. Many within the Yes campaign
question whether, at the end of the day, the Bank
of England would allow a bank (albeit a Scottish
one) using its currency to fail, with major
repercussions for the UK too.
Scotlands ability to live up to the welfare

pledges made by many of the parties and groups
supporting independence including the SNP and
the Radical Independence Campaign have also
been questioned by those who question its capacity
to create a Nordic-style oil economy. Sir Ian Wood,
a Scottish oil tycoon, has warned that the SNPs
claims of oil reserves amounting to 24 billion barrels
are overestimates and the true figure is closer to 15
to 16.6 billion barrels; by 2050 production would
be down to around 250,000 barrels a day.
Oil and beyond
The conclusion of the pro-unionists is stark. In

a widely circulated report published last week, a
Deutsche Bank economist concluded that a vote
for independence would be a political and
economic mistake as large as Winston Churchills
decision in 1925 to return the pound to the Gold
Standard or the failure of the Federal Reserve to
provide sufficient liquidity to the US banking system,
which we now know brought on the Great
Depression in the US.
Yet, despite the steady stream of negativity
particularly about the economic potential of an
independent Scotland, the Yes campaign has
continued to gain momentum and with good
reason.
The economic case against it is far from made.

Just as there is no assurance that a Scotland would
be able to enter a currency union with the rest of
According to the latest figures from the Scottish

government, exports (including those to the rest of
the UK) amounted to just under 74 billion in 2012,
excluding oil and gas revenues. Besides, claims of
dwindling reserves seem to go against the huge
investment made in recent years by oil companies,
including BP, and BG.
But perhaps the biggest question the No
campaign has failed to tackle are the possibilities
for investment and growth under an independent
Scotland. In the late 1970s the British Labour
government infamously deliberated over but failed
to introduce an oil fund something that has
proved immensely beneficial to other European oil
producers such as Norway, which has the worlds
largest sovereign wealth fund, with over $600
billion in assets.
Among the proposals of the SNP is the
introduction of such a fund once the initial fiscal
challenges have been met with the potential to
invest in domestic infrastructure and growth, as
well as make overseas investments.
Scotland, by contrast, has so far seen limited
benefits of the profits reaped from North Sea oil,
being part of a union where much investment into
infrastructure has been frittered away into London
and the South East of England. (It is noteworthy
that a number of business people including Nat
Puri, an Indian-origin businessman, are backing
independence in the hope it will lead to a rebalancing of the UK economy away from London).
Writing in the Scotsman newspaper earlier this
week, Nobel laureate Joseph Stiglitz warned against
the fear-mongering and arcane monetary issues
that seems to have taken hold of the debate and
urged Scots to focus on the meatier and more
crucial question of whether an independent
Scotland would be better able to deliver the
increasingly different aspirations Scotland had to
[43]
the rest of the UK, such as its continued

commitment to free education (domestic students
do not pay tuition fees in Scotland, unlike south of
the border), a less restrictive immigration policy,
and a less unforgiving welfare system.
Whether the potential for such change, or the

uncertainty surrounding those arcane issues,
dominate will become apparent in the next 48
hours.
THE BIGGEST PROBLEM WITH LABOUR LAWS

these fostered an unbearable multiplicity of trade
unions resulting in intra-union splits. It took exactly
75 years to cure this malady! In 2001, the law was
amended to raise the eligibility conditions for the
formation of trade unions.
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Industry has been clamouring for core labour

law reforms. The demand is for flexibility in terms
of freedom to hire contract labour, the freedom to
retrench workers and close down undertakings
without prior government endorsement, and the
freedom to introduce technological changes that
involve loss of employment. Further, they want a
liberal labour inspection system and a rational and
modern system of records compliance.
The employers may have a case, at least with

some of the demands. But there are other
compelling issues which hurt industrial relations
governance at the plant level, the resolution of
which would also enhance the competitiveness of
the firms. The employers seem to have forgotten
this in their quest for labour flexibility. One core
issue is the absence of a central law providing for
a mechanism to determine the collective bargaining
agent.
If there are multiple trade unions fighting for

their respective rights it could lead to the worsening
of industrial relations governance, even if the
employer enjoys labour flexibility. This has been
demonstrated by recent industrial conflicts. It is
well known that trade unions, under certain
conditions, could in fact contribute to the
enhancement of productive efficiency and reduce
transaction and monitoring costs. The World Bank
has endorsed this recently. To the ILO, trade unions
are fundamental to a decent and just workplace.
To be sure, there are union bads as there are
inefficient and fraudulent firms.
Archaic laws
As archaic as any other labour law is the Trade

Unions Act, 1926. Cast in the colonial period and
constructed along the lines of the then prevailing
British law it merely provides for voluntary
registration of trade unions, affords certain kinds
of protection and regulates rather severely the
internal affairs of the trade unions.
With a rather liberal eligibility condition of seven

members for formation of a trade union and given
the splintered nature of Indian society and polity,
[44]
The protective clauses of the law were rendered

technically superfluous once the Constitution
established the fundamental right of association.
What was more essential was to provide for
mechanisms for recognition of trade unions by
the employers, lest even a minority trade union
shake the foundations of business.
Missed opportunities
While Bombay Province enacted the

controversial Bombay Industrial Relations Act in
1946, the Central Government let slip a couple of
opportunities to legislate for union recognition in
1947 and 1950. Maharashtra again led the labour
movement by enacting, in 1971, the Maharashtra
Recognition of Trade Unions and Prevention of
Unfair Labour Practices Act. Meanwhile, violent
industrial conflicts broke out in Bombay (as it was
called then) and Tamil Nadu, casting their baleful
shadow on industrial relations for many years to
come. Labour relations in Tamil Nadu took a turn
for the worse as labour wings associated with the
ruling party sought to superimpose themselves on
industry with the connivance of the ruling party.
The long and bloody Bombay textile strike in the
1980s rendered around 0.2 million workers
unemployed.
Yet, the Central Government remained unfazed,
blaming trade unions for not coming to an
agreement on how to determine the bargaining
agent. In other words, the contention was over the
method to be used to determine the primary union,
namely the membership verification method, the
check-off method (where each member individually
sends letters to the management to deduct
membership fees in favour of a particular union)
and the secret ballot method. The dominance of
Intuc and the long rule of its political mentor, the
Congress, helped sustain the stalemate. State-level
which trade union is entitled to make it to the

negotiating table. Hence, foreign firms complain
that they need a clear cut industrial relations
framework at the firm level.
Thanks to the fact that Labour is in the

Concurrent List of the Constitution, several State
governments such as Madhya Pradesh, Rajasthan,
Kerala and Bihar, have legislated rules and
regulations for the determination of a collective
bargaining agent. The long industrial conflict in
MRFs plant in Tiruvallur in Tamil Nadu in 2009
over recognition of the trade union further exposed
the inadequacies in the Central law and revealed
imbalances in the legal structure on trade unions.
It is another matter that India, unlike its

neighbours in South Asia, has not ratified the
Fundamental ILO Conventions on freedom of
association and the right to collective bargaining
even after 65 years of their adoption. The
indifference on the part of employers and trade
unions on this issue is striking. Trade unions, if
only to make themselves attractive in these adverse
times, should demand legal mechanisms to set their
house(s) in order.
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laws and a voluntary code of discipline were

considered sufficient to deal with this issue. Several
commissions and committees (re)visited these issues,
in vain.
An irrational position
Strangely enough, Central/state government

cite the need for labour flexibility to attract foreign
investment, without addressing the elephant in the
room, as it were: the absence of norms to define
The Government, the employers and the trade

unions need to apply their minds on this crucial, in
fact basic issue of union recognition, before they
consider other reform measures.
NO NEED FOR A FINANCIAL SUPER-REGULATOR
The RBI acknowledges that the Commissions

report is well researched and there is great merit in
the overall approach, but it sees a number of
lacunae. The RBI is of the view that there is a need
to tweak a number of recommendations.
The broad approach of the monetary policy

process set out by the FSLRC is in accord with the
RBIs thinking. It is here that the Urjit Patel report
on the strengthening the monetary policy
framework needs serious consideration.
The monetary policy objectives need to be clearly
set out, and once these objectives are set out, the
RBI should have instrument freedom.
It is essential that the medium-term objectives

are set out by the Government, in consultation with
the RBI, endorsed by Parliament and put out in
the public domain.
Where the RBI differs from the FSLRC relates

to the composition of the Monetary Policy
Committee (MPC). The Commission envisages a
seven-member MPC consisting of two RBI
executives and five external members appointed
by the Government.
The FSLRC fails to appreciate the difference
between executive responsibility and external
advice. The Patel Committee recommends a fivemember MPC with three executives and two
external advisers; this puts executive responsibility
where it should be.
Financial redressal authority
While the FSLRC prefers a single financial

regulatory architecture, the RBI is of the view that
sectoral regulators could acquire information quickly
and adapt regulation.
The RBI feels that the consumer protection units
in sectoral regulators should be first strengthened
before moving over to a single FRA.
The bane of the entire financial sector is that
violation of customer rights does not invite punitive
action against offending financial institutions. Any
significant improvement in consumer protection is
contingent on a change in the mindset of the
regulators which should have zero tolerance for
infringements.
The RBI is in sympathy with the FSLRC
approach on the Resolution Corporation for dealing
with failing firms at the least cost to the exchequer.
The FSLRC envisages that the Deposit Insurance
Agency would be subsumed under the Resolution
Corporation.
Two issues arise here. First, pressures to provide
deposit insurance to non-bank entities will be
difficult to resist. Second, who will finance the
deposit insurance agency if there are large losses?
At the present time, the RBI fills the gap. The
ability of the Government to meet these losses is in
doubt.
[45]
Further, unlike in the case of the US where the

Resolution Trust acquired real estate assets at a
sharp discount, in the Indian case, by the time the
Resolution Corporation acquires the troubled units,
the failing firms would be empty shells a case of
profits being private and losses being public.
The RBI stresses that leaving the objective of

monetary policy to repeated review precludes the
Central bank from acquiring credibility. The RBI
feels that such objectives should be clearly set out
in the Act and approved by Parliament.
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The RBI has reservations on the FSLRCs

recommendation that there should be one regulator
instead of the present multiple sectoral regulators
(of course at this stage the FSLRC has recommended
that the banking regulator should be separate).
There are strong reasons for regulation of debtoriented capital inflows, regulation of money and
government securities remaining with the Central
bank. These issues have been underweighted by
the FSLRC.
According to the RBI, the FSLRC

recommendation is inadequately substantiated as
regards costs and benefits. While the Commission
emphasises the synergies of bringing together some
regulators, it does not focus on the synergies lost
by dismantling certain regulators.
The RBIs reservations
The RBI sees inconsistencies in some of the

FSLRCs recommendations. While the FSLRC
envisages regulation of organised trading of
financial products being centralised with one
regulatory agency, non-banking financial companies
(NBFCs), which perform bank-like activities, are to
be regulated by a regulator other than the banking
regulator. Further, the RBI points out that the
Commission proposes to entrust an agency with
responsibility but the powers to exercise the tools
necessary for discharging responsibility would be
with another agency.
A case in point is that the RBI is charged with
managing the internal and external value of the
rupee, yet the Commission recommends that control
over inward capital, particularly debt flows, be
taken away from the RBI.
Judicial oversight
The FSLRC unleashes an attack on regulators

by calling them mini states with powers of the
legislature, executive and judiciary. This is reflective
of the predilection of the then powers in the
Government which had been running an open
vendetta against the RBI.
The RBI is of the view that submitting
everything the regulator does framing of
regulations, policy decisions and the decisionmaking process to legal oversight, carries the
danger of depriving the regulator of its inherent
powers.
The elaborate point-by-point examination of the
Commissions report in the RBI annual report
should be given close attention by the Government.
The FSLRC report is the handmaiden of the
erstwhile governments open hostility to the RBI.
The new government would do well not to carry
this baggage. Financial legislative reforms need to
be undertaken after due parliamentary process. As
to the way forward on financial sector legislative
reforms, all one can say is that one should not start
from the obviously flawed FSLRC report.
MINE IT, USE IT, DONT EXPORT IT
The revival of manufacturing in India, coupled

with increased exports of finished goods, will be a
game-changer for Indias economic and social
development. Given the declining trend in Chinas
export competitiveness on account of currency
appreciation and labour cost inflation, its cost
advantage appears to have shrunk. India, in fact,
is already one of the most competitive
manufacturing nations in the world today. In the
Global Manufacturing Competitiveness Index
published by Deloitte in 2013, India is placed as
the fourth most competitive nation in the world,
behind China, Germany and the US. But the share
[46]
of the manufacturing sector of Indias GDP has

stagnated at around 15 per cent.
The National Manufacturing Policy proposed
by the previous government yet to be taken up
for implementation had set its agenda to increase
the sectoral share of manufacturing in GDP to at
least 25 per cent by 2022; increase the rate of job
creation to 100 million additional jobs by 2022; and
enhance global competitiveness, domestic value
addition, technological depth and environmental
sustainability of growth.
To achieve these objectives, India needs to invest
around $1.5 trillion by 2022 in the manufacturing
sector. Given that the cost of overall input factors

of production, namely, land, labour, capital, key
raw materials and so on is continually on the
increase, it will be extremely difficult to attract
necessary investments unless availability of key raw
materials such as gas, coal and iron ore are ensured
at the right price.
Need for reforms
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It is not out of place here to mention also that

in the National Mineral Policy of 2008, India had
recognised that a country should utilise its
comparative advantage and give priority to import
substitutes, value addition and export, in that order.
This is, of course, a fairly standard policy being
followed by various countries in order to boost
investments in manufacturing to create
employment.
are key to the viability and sustainability of the

industry. The current capacity utilisation figure for
the steel industry in India has fallen to 77 per cent
as against around 92 per cent in well-performing
steel plants of the world. The import of iron ore
cannot be justified, even if iron ore prices fall
internationally, because of the requirement of
foreign exchange which will always be in short
supply in view of the heavy dependence of the
Indian economy on the import of oil and gas.
Steel power
One of the prime movers of the manufacturing

sector is steel. With strong backward and forward
linkages, the steel industry is a visible engine of
economic growth as well as of employment
generation and also a powerful symbol of quality
of life and economic prosperity. Most developed
nations, during the course of their progress, have
relied heavily on their own domestic steel industry
to meet the requirements of rapid industrial
advancement and for building physical
infrastructure.
World steel production has already exceeded

1.6 billion tonnes. This phenomenal increase has
been led by China, accounting for over 47 per cent
of world steel output. China is not just the largest
producer, but it is also its largest consumer of steel,
followed by the US and India. With a production
base of over 81 million tonnes in 2013, India
currently is the fourth largest steel producer in the
world, after China, Japan and the US. The Indian
steel industry is growing fast, despite a temporary
slowdown.
Indias per capita steel consumption is around
60 kg, which is not only very low, but also much
lower than the international average of over 215
kg. This indicates a huge gap in prosperity levels,
though it also reflects a huge potential for the
growth in steel consumption. Realising the
enormous potential, the high level committee on
manufacturing has decided to plan ambitiously for
crude steel capacity of 300 million tonnes by 202526.
Needless to say, the availability of iron ore at
affordable prices and on short delivery schedules
All these make it clear that the Government

needs to come up with reforms that will help in
reducing red-tape in brownfield and greenfield
expansion of steel plants as well as in mining
operations and in granting environmental
clearances. More importantly, it needs to ensure
the availability of critical raw materials to the
domestic industry.
India can actually be a steel manufacturing hub
provided the competitive advantage of iron ore is
appropriately leveraged. It is ironical that many
steel units which made value addition within the
country with large investments, creating
employment, contributing substantial revenue to the
exchequer and saving precious foreign exchange,
are actually suffering due to lack of iron ore.
As iron ore exports were earlier allowed
virtually freely from India, high grade iron ore,
except from a few captive mines, were exported in
large quantities, thus leaving low grade ores to the
domestic steel industry, particularly in Karnataka
and Goa.
This negatively impacted the productivity of
steel plants, besides causing an additional financial
burden in the form of extra cost of processing low
grade iron ore through repeated stages of
beneficiation.
Conserving natural resources
Most countries have regarded natural resources

as strategic for the development of the country and
have exercised abundant caution in the exports of
minerals. Indonesia has restrained the export of
unprocessed minerals. It also brought in the concept
of domestic market obligation, making it mandatory
for mining companies to meet the domestic market
requirement first, before exporting.
In 2001, China was the second largest global
exporter after Australia. Subsequently, the Chinese
government restricted exports in favour of satisfying
domestic demand. It implemented a law to restrict
[47]
the export volume of coal, and abolished VAT from

13 per cent in 2004 to 0 per cent in 2006.
When countries around the world are
conserving their natural mineral resources to secure
their future and are also emphasising value
addition, exports from India of a vital national
wealth like iron ore would not be prudent. It is of

paramount importance that the Central and State
governments take steps to conserve natural
resources and formulate and implement robust
policies to revive manufacturing in India.
AN AYE FOR UNITY

Ukraine or Syria and Iraq or South Sudan, Scotland
has shown that there is another way to address
the question. For democratic societies everywhere,
the Scottish referendum also underscores the
strength of the democratic process. The result shows
that given adequate information, sufficient
mobilisation and the freedom to exercise their choice
without fear, people will end up making rational
and pragmatic choices. The result will also be
cheered by stock and currency markets, as well as
UK industry, which had been fearful of a Yes
vote.
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Shortly after the issue was decided, British

Prime Minister David Cameron told his countrymen
in a televised address that the question of Scotlands
independence had been settled for a generation.
There will be, he stressed, no re-runs. That may
be somewhat premature, given the powerful
emotions unleashed by the issue and the
extraordinary debate over the question of
nationalism and identity witnessed in the run-up
to the referendum. However, the fact remains that
Scottish voters have convincingly voted against
independence from Britain. Given the immense
voter turnout nearly 85 per cent the
referendum was indicative of the closeness with
which the ordinary people of Scotland identified
with the issue. For a small country an
independent Scotlands population would have
been about the size of Singapores 1.6 million
votes for independence is substantial and indicative
of the deep divide within Scottish society. The vote
may have been won by the pro-unity faction, but
it would be disingenuous to claim that this has
settled the issue once and for all.
At a time when issues of national and ethnic

identity, and the desire for self-determination have
resulted in bloody conflict around the world,
Scotlands remarkably civilised debate, and the
peaceful and democratic vote on such an emotive
issue, hold many lessons for the rest of the world.
For the people caught in the middle of the war in
There is a larger lesson here for India as well.

Why, after all, did independence become an issue
after three centuries of union? More than the
immediate pushes and pulls of anger against
being ruled by a government they largely didnt
vote for or a revolt against imposed austerity or a
dismantling of their welfare state the reason the
independence issue caught the imagination of so
many Scots is that it offered the possibility of an
alternative future, one which they could have a
bigger hand in determining. This is not so different
from the reasons which have propelled the demand
for independent statehood in Telangana or
Gorkhaland. The very least Scotlands vote should
do is set us thinking about an alternative way to
handle such issues.
TIME TO PUT SUBSTANCE BEFORE STYLE
Long after President Xi Jinping has flown back

to Beijing, there will remain a host of prickly issues
that senior ministers and diplomats on both sides
will need to bang heads over. During President
Xis 48-hour whistle-stop through Ahmedabad and
Delhi, the climate-controlled atmospherics, the
fastidiously choreographed diplomatic pas de deux
on Sabarmati, the thunderous rhetoric and the
flurry of MoUs made for good optics. But action is
always a poor substitute for achievement.
One of the visible thorns in the blossoming
[48]
relationship is border uncertainty and both

President Xi and Prime Minister Narendra Modi
did reiterate a need to settle it. But beyond the
omnipresent irritation of a virtual border, it is in
Indias interest to resolve numerous pending geoeconomic issues with China.
Shifts and moves

Start with World Trade Organisation (WTO)
first. India invited universal censure after blocking
safe passage of Trade Facilitation Agreement (TFA)
at WTOs General Council meeting in Geneva on

July 31, 2014. However, Chinas unprincipled floorcrossing on that day was truly shocking, after
having supported Indias stand in many multilateral
fora (such as G-33, G-20) and in bilateral meetings.
One reason for Chinas change of heart could

be Indias lackadaisical communications strategy;
also, Indias parleys could have conveyed a message
that its interested in cherry-picking only food
stockpiling from a multitude of other development
issues. This might have even influenced some of
the other large emerging nations, such as Brazil
and South Africa, to isolate India.
But theres another significant development.
There's probably a radical shift in how China views
itself: as a world superpower and a trade behemoth,
competing with the developed countries. Hence, in
keeping with this new-found status, TFA makes
more sense rather than hankering for food security.
While China is indeed a trade colossus, India needs
to keep in mind this change in Chinas selfperception when negotiating with President Xis
men in future.
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Chinas mercurial shift could be understandable

if India was found to be acting irrationally. But, on
closer analysis, it seems Indias actions were
justified. Having agreed at the Bali ministerial to
approve TFA, on condition that developing
countries not be penalised for food security
imperatives till a permanent solution is formalised
by 2017, India discovered that all discussions
thereafter were focused on only TFA. This was
contrary to the post-Bali work programme and gave
India (and some other developing countries)
grounds to believe that once TFA was out of the
way, rich countries didn't care much for the Doha
Development Agenda, including food security
measures.
BRICS, G-20 and other fora.
But, there are some other valid reasons for

Indias principled action. For one, India has a
sovereign right to provide food security for its
citizens, just as US has the right to buy and
stockpile crude oil to provide its citizens with energy
security. Two, TFA will cause a spike in
infrastructure costs for poor countries; the rich
nations were to provide budgetary assistance to
help them tide over this unplanned expense, but
the amount finalised is too low and the modalities
are still vague.
Finally, benefits from TFA are ambiguous, with
most gains likely to go to the developed world.
Chinas sovereign objectives are somewhat

aligned with India on this issue, particularly since
it too has to provide food at reasonable prices for
large sections of its population. Also, China has
been a signatory to all the food security negotiations
by G-33, a grouping of developing countries with
convergent trade issues.
A change of heart?
While its not known if Modi-Xi talks included

Chinas breach of trust, the joint statement issued
by both governments was patently anodyne: As
developing countries, India and China have
common interests on several issues of global
importance like climate change, Doha Development
Round of WTO, energy and food security, reform
of the international financial institutions and global
governance. This is reflected in close cooperation
and coordination between the two sides within the
The border incursion, intriguingly timed to

coincide with President Xis visit, is a reminder of
Chinas foreign policy dualism: an extended hand
of economic friendship to mask the ugly face of
geographic expansionism.
The second issue is climate change and India
would do well to keep the new Chinese psyche in
mind in future multilateral deliberations.
On the surface, both India and China seem to
be on the same page. Apart from a common
historical stand, both President Xi and PM Modi
have also excused themselves from the UN Climate
Summit on September 23.
But thats where the similarities end. China has
already signed a separate climate change agreement
with US. While these agreements reduce the climate
policy distance between the two superpowers, there
are still some sticking points. While China and US
agree that that rich countries must provide
developing nations with wherewithal to upgrade
technology, the divergence is whether the old labels
of developing or developed need to be
upgraded.
In essence, the rest of the worlds identity
including Indias is hostage to progress of talks
between two superpowers. The initiative seems to
be slipping away from Indias grasp; a climate
change strategy is required before the big climate
summit in Paris next year. While Chinas stand may
be driven by thickening smog over its cities, India
may have to fashion its own position consistent with
its economy and stage of development.
[49]
Myriad issues
goods and services, are just some of them.
There are many other unresolved issues on the

table using renminbi as a alternative currency,
Indias membership in multilateral institutions (such
as Asian Investment Infrastructure Bank) and
groupings (Shanghai Cooperation Organisation, for
example), discussions on how to take the BRICS
Bank ahead, enhanced market access for Indian
The lessons for Modi are clear: with China what

you see is never what you get. Modi will have to
take every opportunity to create an independent
policy space for india, even if that requires striking
trade and investment deals with Japan, USA, EU,
Russia or Australia.
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FOCUS ON REVIVAL OF UNITS, NOT ASSET-STRIPPING

There has been a recent surge in banks selling
off their distressed assets to asset reconstruction
companies (ARCs). There is a general perception
that this has been spurred mainly by the Reserve
Bank of India (RBI) relaxing some provisioning
norms.
But this is open to question. Banks are better
equipped in terms of manpower, knowledge of the
borrower and knowledge of security (assets). On
the other hand, ARCs deal with the borrowers for
the first time.
Restructuring of loans, on the condition that

the promoters infuse some capital, can be done
without banks incurring much loss. Banks can
recover the losses later once the company turns
around and/or the economic conditions improve.
That has been the time-tested practice in the
country. But none of the public sector lenders are
seen doing this nowadays.
The fear factor
What I observe is that on account of the fear

psychosis of an investigation later on by an outside
agency, the banks prefer to adopt ARC route. It
was expected that all ARCs will have sufficient
funds to takeover bad debts and they will develop
a mechanism to resolve the same within a shorter
timeframe (currently, the time is 8 years, which is
too long). The aim was to protect the interests of
banks, ARCs and other stakeholders.
However, the majority of ARCs are interested
in getting assigned debt that is backed by
substantial fixed assets. At the same time, banks
are also keen to retain such assets as they expect to
recover more from such borrowers themselves.
That way, both of them are fighting for the same
asset class.
Unfortunately, ARCs are supported mostly by

real estate barons, whose main aim is to grab real
estate assets rather than initiating any purposeful
restructuring or recycling of assets.
[50]
So, ARCs should be told that once they get the

debt assigned from banks, they should reappraise
and re-examine the viability of the project with a
reasonable internal rate of return , over a period of
10-15 years. If the unit is found viable, the lenders
should evolve a proper monitoring mechanism by
appointing financial experts. This will help recycle
the NPAs.
Once the project is reappraised, the assets
should be classified as standard and the borrower
and the banks that were not part of the earlier
lenders group should also be given an opportunity
for further funding (the company and promoter
should keep on reinvesting the proceeds of the
business).
Help at hand
This will go a long way in creating competition

and further reducing bad debts. Besides, these steps
will help create more employment opportunities
and revenue for the Government.
This process will save ARCs from becoming
bankrupt due to lack of enough liquidity and/or
their inability to resolve NPAs apace.
The State Bank of India chairmans observations
in favour of entrusting the management of
industries to outside agencies with full powers, as
was suggested in the case of Bhushan Steel, to
supervise the day-to-day operations till the
promoter-directors infuse substantial stake into the
company, is appreciable.
Instead of the bank appointing a nominee, the
chairman or MD of the bank be appointed as the
chairman of a sick company to run its operations.
That will be a real test and this would protect the
interests of all stakeholders, as in the case of Satyam
Computers.
Till such time, the existing promoters should
not be allowed to access bank funds for any other
ventures. This will create a deterrent. Therefore,
an enabling provision has to be made in the
Companies Act, Sarfaesi Act and ARC Act that

as soon as the assets are assigned in favour of ARC,
the existing board and shareholders powers are
suspended and will be revived only when the
promoter directors bring in substantial funding.
After initiating these efforts, ARCs and banks

should invite expression of interest for takeover of
these assets as a going concern.
This will also create huge value for the assets of
the defaulting company.
Till such time, promoters should not be allowed
to interfere. This will also give an opportunity to
make good all the sacrifices made by the banks
and the Government.
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At that juncture, ARCs should reassess the

viability of the project after considering substantial
reduction in debt. In other words, if such portion
of the debt is scaled down, if reasonable IRR
concept is introduced, the purpose of revival of the
unit is beneficial, rather than ARCs looking for fixed
assets as real estate ventures.
resolving the problem of bad debts. The resolution

of bad debts itself should not start from the day it
becomes a NPA, but it should be monitored during
the implementation of the project.
For this, a framework for ARCs has to be

stipulated. ARCs should be encouraged to engage
professionals not only for resolution of bad debts,
but also for running the units.
This will really serve the intention of the
Government for the revival of sick units as well as
Recent guidelines of the RBI which insist on

takeout financing route will also help the cause of
revival of sick units.
DISRUPTION IS NEEDED AFTER DISASTERS
A natural disaster is a lesson in philosophy, in

a way. It offers new insights on life and living. The
Gujarat earthquake of 2001 was one such. So
transformative was its outcome that it changed the
political and socio-demographic contours of the
state in ways unimaginable, as Edward Simpson,
anthropologist at the School of Oriental and African
Studies, University of London, describes this in his
book, The Political Biography of an Earthquake:
Aftermath and Amnesia in Gujarat, India, which
was released in India recently. In an e-chat with
BusinessLine, Simpson spoke about the quake and
its politics. Excerpts:
Why this book?
I had conducted research in Gujarat before the

earthquake. At the time of the tragedy in 2001, my
attention was drawn to the safety and plight of
my friends in the region. I think it is fair to say that
then Gujarat was a very different place. Things
have changed, quite dramatically. The research I
went on to do was often led by the trials and
tribulations of my friends. For some, the earthquake
changed everything; for others, very little changed.
Both groups, however, had to endure the utter
disruption of the aftermath. Back then, amid the
grief and the shock, people were angry, there were
protests and endless discussion about the delays
and inequalities of post-earthquake reconstruction.
Now, it is difficult to recreate that time in our
imagination. The towns of the region have almost

changed beyond recognition. People expect and
want different things. Although rather
impressionistic, I sense that people are more mobile.
There are improved roads, infrastructure and then
of course there is the industry, and the pollution
and new kinds of population that has come along
with it. I hope in some small way that the book I
have written is a record of this remarkable
transformation.
This book is a long-term study of what
happened after a catastrophic natural disaster. I
am an anthropologist, so my research was among
the people affected by the disaster and not primarily
on the agencies who worked first with first relief
and then rehabilitation. I encourage the reader to
think as broadly as possible about what aftermath
is. If we look at the evidence from Gujarat, we can
see that earthquakes can be used to push particular
kinds of future, politics and ways of being.
The shock of an earthquake can be used to
bring about industrial revolutions, or land grabs,
proletariats can be created, and new forms of
culture and politics can be encouraged to emerge.
I discuss at length in the book how people have
played with history, promoted certain historical
figures over others, attempted to flatten older
regional distinctions within Gujarat, and bring new
gods and temples to people.
[51]
Why a political biography?

Many people I know in Gujarat have a deep
interest in politics. This has always impressed me
about them and it has influenced the ways in which
I have seen Western Gujarat transform.
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It is well known that electoral turnout in India

is high; however, it is less often discussed how
impressive the general knowledge of ordinary
people is about the local political scene is. I think
people I know there saw the aftermath of the
earthquake as a political problem perhaps more
than they saw it as a logistical one. I have used
political in the title to capture some of this spirit,
and but also to point to the fact that
humanitarianism, planning and such other
operations also are a kind of politics, and never
value neutral no matter what those engaged in
such activities may claim.
It has become obvious to me that people

understand this earthquake and its consequences
in such utterly different ways. They will draw their
own conclusions from what I have written,
regardless of what I conclude. I think this is an
important lesson. You and I will not see the same
things in earthquake; neither will a local person
see the same as the state. Trying to understand
how and why this is the case and what it means
for our interaction and mutual confusion is a
positive way of improving conditions in the
aftermath of future disasters.
How has the Gujarat quake affected the peoples

and the governments outlook towards life and
administration?
The
earthquake
brought
neoliberal
governmental reforms into western Gujarat in
rapid, and dramatic ways. Public-private
partnerships (PPPs) were visible, perhaps for the
first time. New agencies with new titles initially
confused people. I think it is fair to say that the
transition to the new forms of government,
although necessarily hasty, was poorly explained,
and this became the source of much confusion and
then in turn anger in western Gujarat. A great
deal of money was available to ensure that
buildings were safer, and the population density of
the major urban centres was much reduced.
Unquestionably, many parts of the region are both
safer and more accessible now than they were
before. However, the sheer complexity of
reconstructing, retrofitting and imposing new
building rules on the urban areas inevitably meant
that some shortcuts were taken. A price will be
paid for this in the future.
It might seem a strong claim, but I think the

aftermath, by which I mean the key reconstruction
period of five or six years, left a greater mark on
the outlook of people than the disaster itself. The
disaster was a disaster, it was short, ruthless and
brutal. The aftermath in contrast was long, difficult
and exhausting. For those who lived in towns like
Bhuj and Anjar, it is difficult to convey how much
they suffered at that time. The noise, dust and
uncertainty was incredible. But, gradually, I think,
hope shone through.
[52]
I have also learnt that disruption is necessary

in the aftermath of a catastrophic natural disaster.
No amount of post-disaster management will do
away with disruption altogether. Therefore,
disruption must be used creatively as a way of
engaging the many agencies, institutions and ideas
that come together in an aftermath. I have also
learnt that people have a great deal of creativity,
resilience, and enthusiasm for life.
These positive attributes were generally not
capitalised on in the aftermath of this earthquake.
The aftermath of an earthquake is a long process,
and should be treated as such from the outset.
Auditing policy and the relationship between new
emergency policies and older policies should be a
core part of any reconstruction programme. The
confusion caused by a number of contradictory
policies in Gujarat led to a considerable amount of
anger and anguish, which could easily have been
avoided.
Youve titled a chapter, interestingly, Hyperbolic
Capitalism. Does this phrase explain the growth
of Gujarat (which is disputed by many ) in the
past decade?
I used the word hyperbolic because the rate of
growth in some parts of the region affected by the
earthquake was tremendous. A frontier mentality
emerged, and industry of various kinds appeared
across the region. Factories were put up at a
tremendous rate. People descended on the region
to profiteer. A friend joked it had become like the
wild west of cowboy films. Im not an economist,
and neither has this been the focus of my study,
but on the whole people I know well in Gujarat
are generally much better off now than they were
before. How much of that would have happened
anyway, is impossible to work out. But growth for
growths sake, the saying goes, has the same
mentality as a cancer. Economic growth is of course
the buzzword of the moment, but what about
quality of life, what about the longer-term
consequences of such rapid industrialisation for the

environment, and the social conditions of those
who live there? These are secondary concerns, and
they should not be. I sensed a great deal of
excitement in the aftermath of the earthquake about
the coming of industry, towards the end of this
research I also sensed something of a sadness at
the realisation that industry had changed the world
and the changes were not always good.
In this book, I have tried to make it clear the

post-earthquake reconstruction is a long process
and should be understood as such from the outset.
At first, the village adoption scheme, which was in
effect a PPP, led to the reconstruction of villages at
a very rapid rate. However, many people thought
that the houses built were inappropriate, often being
grid-like structures, concrete boxes grafted onto
hillsides, and unbefitting the cultural sophistication
of life in rural India. However, the longer-term
nature of this research has shown that many, not
all, of these villages are now inhabited highly
successfully by people. Who have made these
villages their own. Places that once appeared a bit
like concentration camps are now often vibrant and
prospering.
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Usually, tragedies unite people, cutting across

caste and other differences. But you witnessed a
different story.
You talk about how, after the reconstruction

process was over, villages were adopted. And
some of these were divided based on caste.
The people who worked in the initial weeks

after the aftermath have talked about the spirit of
collective help that prevailed at the time. A few
journalists, unsurprisingly, went in search of stories
of inequality and discrimination. Such practices
were probably not difficult to find, given that most
societies are also extremely discriminatory even in
normal times.
The longer-term consequences of the
reconstruction programme have, however, been
more divisive, not deliberately, but in their mostly
unintended consequences. In urban areas I think it
fair to say that social class played a greater role in
the redistribution of people than then caste. Not
always so, but often. Then there is the endless
question about Hindus and Muslims in Gujarat.
There was deliberate exclusion at times, of this there
is no doubt.
But in the longer term, housing reconstruction
and the reconfiguration of urban areas has led to
a greater distinction between the two populations.
This is complicated, and not simply a product of
the discriminatory policies of the State. I want to
be clear on this. Soon after the earthquake a good
friend of mine, a Muslim, built himself a new house
in a suburb outside Bhuj. He lived there quite
happily, without receiving compensation money
from the state. Then, the widespread violence of
2002 left him and his family feeling vulnerable and
isolated in the suburb. In addition, the State
announced its compensation policies. Being a
sensible man, he realised if he returned to his old
house he could claim compensation. Therefore, he
along with many other Muslims abandoned their
new houses and moved back to their old
neighbourhood and have remained there ever since.
The term ghettoisation is often used now in
academic literature about the ways Muslims inhabit
urban space in Gujarat, but it should be clear that
there are at least as many push factors as there are
pulls.
Much of the reconstruction process adopted a

participatory planning approach. The sensible idea
is that you involve people in decision-making about
the future. However, when this was managed
badly, as it often was, in relation to village adoption
this often meant villages dividing along caste lines,
unable to come to a collective decision.
Disasters offer regimes fertile avenues for testing
and applying authoritarian systems, because the
people are will be in a state of vulnerability at the
time. Was this the case in Gujarat?
Narendra Modi came to power in the name of
the earthquake. For some years, his reputation was
closely connected to the ways in which postearthquake reconstruction was handled. He visited
the region a tremendous number of times. The story
that was allowed to emerge nationally and
internationally about earthquake reconstruction
was always one of success. And, if the measure of
success is infrastructure and industrialisation then
unquestionably he was successful. However, if we
use other measures then the story appears less like
a success.
You discuss the socially divisive intervention by
organisations like BAPS Swaminarayan Sanstha.
Was this a general trend or an exception at that
time?
I have used the word intervention to capture
the spirit in which people in the region experienced
those who came to help. The humanitarians, who
probably mostly thought they were working for
the good of humanity, brought ideas which were
quite alien to the local population. Im not just
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thinking here of foreign NGOs, but of Indian

organisations which through the structure of the
PPP public-private partnership could and did
impose their ideas on local people while
constructing villages.
Is this sustainable as other institutions and countries

worry about sustainability? The book ends by
saying proper hope is a gift. But thats not easy
to come by. Especially to those who are stricken by
such tragedies. Your comments.
The country is grappling with yet another

natural disaster the J&K floods as we speak.
What are the lessons from the Gujarat quake on
disaster preparedness?
Some of Europes great 18th-century thinkers

were encouraged to consider what hope meant in
the aftermath of the earthquake which happened
at Lisbon in 1755. It struck me while doing this
research in Gujarat that many people there were
asking very similar questions. Similarly, they
reflected on the cause and origins of the earthquake
and why it affected them in particular ways. Hope
is an interesting commodity or spirit or emotion.
Learning how to work with and gift hope, alongside
material succour, is a neglected part of the
humanitarian project. Hope gives direction,
enthusiasm, and expectation. These qualities it
seems to me were discouraged in Gujarat by a
manufactured state of confusion, where things were
sometimes so ludicrous and hopeless.
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PPPs were a speedy solution to rural

construction. However, they carried with them all
sorts of discriminatory politics and imposition.
Confusions and contradictions in policy caused
deep anxiety and insecurity amongst people who
would already have suffered terribly. The language
policy could have been much softer.
I suppose the broader question raised by postearthquake reconstruction in the book is one of the
future. At the moment, the focus is on growth,
industrialisation, and infrastructure. But, the
fundamental design of this economy is fossil fuel
based. Coal=electricity, and an economic
system=petro mobility of both labour and capital.
CHANGING TIMES
The winds have changed for the Indian

economy and it is a good time to upgrade the
national approach to growth. Business confidence
has bounced back, industrial output is up and the
new government is promising pro-growth policies.
India is at the cusp of remaking its economy in the
post-slump world.
However, the world has changed during the
past few years. Globalisation has lost its momentum,
as the developed and the emerging economies lick
their wounds after battling the financial and fiscal
crises. Export-led growth of the leading emerging
economies has been stunted and the competition
for global investment and trade has expanded.
Indias global brand has also diminished due to
policy contortions on FDI, retrospective taxation
and clearances for projects.
Time to adapt
In fact, India has received a strong reminder to

adapt to the changed economic conditions from
the latest Global Competitiveness Index (GCI). India
has slipped 11 places during the past year and is
now ranked half way down the ranking of 144
economies, 43 places below China. This is quite a
drop from the 49th rank India got in 2009.
[54]
Indias competitiveness has suffered on several

counts, but the most on institutional quality and
market efficiency. While Indias global competitors
have made it easier to do business and embraced
foreign capital, India seems to have lost its way..
Indias navel-gazing is evident from its 121st place
in the global ranking on technology readiness. A
key reason for that is tardy investment in digital
connectivity, which is a key productivity driver in
the modern world. However, the most striking
reminder from the GCI report is that India ranks
98th on health and primary education parameter
and that the life expectancy in India is secondshortest in Asia, after Myanmar. This should serve
as a wake-up call to India .
If one were to focus on the healthcare sector,
India continues to carry on with obvious anomalies.
Despite having a huge public health programme,
the majority of Indians are desperately short of
acceptable medical care. Private healthcare remains
fragmented and divided between the extremes of
shoddy and cheap and excellent but expensive.
India is producing about 50,000 generic doctors a
year but less than 15,000 specialists, making the
specialists rare and expensive. The hospital sector
is growing but the supply of nurses and technicians
is lagging, as regulations restrict those functions to
mere tasks and disallow career growth. India

urgently needs to respond to create a healthcare
ecosystem where universal healthcare can become
a reality and not just remain a slogan.
There are many more areas where India can

reinvent itself . Physical and digital infrastructure,
smart urbanization, agricultures industrialization
and liberalization, technology adoption and
development, open and participative governance
are among the areas where India needs to change
.
The past decades economic boom-bust has
taught us that if change is not managed, the change
will hurt.
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Education and skill development is another area

for fundamental policy and investment action. It
has to be a priority given Indias demographics.
With the majority of the population being young,
it is a once-in-history opportunity for the country
to upgrade almost entire population at one go.
Unfettered investment, and not pious sentiments,
is going to build the pipeline of informed, articulate
and skilled students from the primary to the
university levels. India cannot afford to end up
with millions of semi-educated and semi-skilled

people just because of qualms about profits.
WHY ARCHAIC CITIZENSHIP LAWS MUST GO
A debate on the need to repeal obsolete laws

has been set in motion in India with the government
appointing a committee to look into the matter.
Even our erstwhile coloniser, Great Britain, initiated
the process of repealing 38 such laws last year,
which were passed between the years 1849 and
1942, pertaining to the construction and
maintenance of the Indian Railways. Meanwhile,
our own post-independence efforts to weed out
obsolete laws, through a process of spring cleaning,
remain pending.
An area that requires immediate attention in

this regard is conflicting laws regulating citizenship.
Take for instance the colonial-era laws, The Passport
(Entry into India) Act, 1920, The Registration of
Foreigners Act, 1939, and The Foreigners Act, 1946.
Even though Parliament has since enacted The
Passports Act, 1967, The Citizenship Act, 1955,
and created the Overseas Citizenship of India
scheme in 2005, we continue to rely on these archaic
pieces of legislation. Most of these laws enacted
during colonial rule are redundant and do not stand
the test of the principles of natural justice. They
also confer unfettered, arbitrary and draconian
powers on government authorities and need to be
taken off the statute book.
A comprehensive law
The Passports Act, 1967, is a comprehensive

law relating to the issue of passports and travel
documents. It provides statutory safeguards in
procedures involving the variation, impounding and
revocation of passports, with rights of appeal to
aggrieved persons with regards to offences and
penalties levied under this Act. However, the
simultaneous existence of the Passport (Entry into
India) Act, 1920 and The Foreigners Act, 1946,

conferring absolute and unlimited powers to remove
or summarily deport a person from India without
following the due process of law, are anathema to
a democratic country and an anti-thesis to the rule
of law. Powers of house arrest, detention, solitary
confinement and summary removal from India
under these Acts clearly infringe upon the
fundamental rights of life and personal liberty
guaranteed under the Constitution. Therefore, these
British-era laws are completely misplaced in this
day and age.
The Central government has the exclusive
jurisdiction to determine whether a person, who
was a citizen of India, has lost that citizenship by
having voluntarily acquired the citizenship of a
foreign State as per Section 9(2) of The
Citizenship Act, 1955, read with Rule 30 of The
Citizenship Rules, 1956. Further, under Section 9(2)
and Rule 30 above, mere proof of the fact that the
person has obtained a passport from a foreign
country is not sufficient to sustain an order for
deportation or prosecution unless there has been a
decision by the Central government under Section
9(2) of the Act. Moreover, the enquiry by the
Central government under Section 9(2) of the Act
is a quasi-judicial enquiry. This proposition of law
is well settled by the following judgments of the
Supreme Court : State of A.P. vs. Abdul Khader
AIR (1961) SC 1467; Government of A.P. vs. Syed
Md. AIR (1962) SC 1778 and State of U.P. vs.
Rehmatullah AIR (1971) SC 1382. Thus, this
process of determination of nationality is well
settled in law.
With an estimated 21,90,9875 non-resident
Indians spread across over 200 countries (Ministry
[55]
simply will not label a person as a foreigner, and

determination of his nationality is his fundamental
right. It is time Parliament reconciles this concept
of freedom, personal liberty and natural justice with
the determination of nationality.
Debatable question
Given the social circumstances today when
emigration is common, international Indians qualify
to be PIOs or OCIs. If they wish to reconnect with
their homeland, they should not be categorised as
foreigners by invoking the colonial provisions of
the 1920 and 1946 Acts. The Citizenship Act, 1955,
itself creates harmony. The retention of a foreign
passport today cannot lead to deportation and
summary removal from India. Why then do we
need to retain the colonial enactments which were
brought in to regulate the entry of foreigners into
India in circumstances prevailing in 1946? This is
a serious issue which must be addressed in
Parliament.
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of Overseas Indian Affairs statistics), there have

been compromises in the area of dual nationality,
which is otherwise prohibited under Article (9) of
the Constitution and Section (9) of the Citizenship
Act, 1955. The categories Persons of Indian
Origin (PIO) and Overseas Citizen of India
(OCI) were carved out to confer limited benefits
on persons of Indian origin. Therefore, PIOs and
OCIs now enjoy limited rights in India and can
enjoy residence rights here without any visa,
registration, sanction or other permissions.
Moreover, under Article (5), every person who is
domiciled, born or whose parents were born in
India, or who has been ordinarily resident in India
for not less than five years preceding the
commencement of the Constitution, shall be a
citizen of India. Hence, inherent rights flow to those
whose nationality is determined by law.
Under the 1946 Act, disputes relating to
questions of determination of nationality when a
foreigner is recognised as a national of more than
one country or it is uncertain as to what nationality
is to be ascribed to a foreigner, such person may be
treated as the national of the country with which
he appears to be most closely connected. The 1920
and 1946 Acts permit the removal or the
deportation of a person from India without
providing any forum or procedure for
determination of the question of the nationality of
the foreigner or giving any statutory rights in this
process. There are no tribunals available to
determine these questions as of now. However, the
Citizenship Act, 1955, and the Citizenship Rules,
2009, prescribe that if any question arises as to
whether, when or how any person had acquired
the citizenship of another country, the Central
government shall first determine such questions.
The Supreme Court interpreting these provisions
has held that a person could not be ordered to be
deported or removed from India unless the Central
government takes a conscious decision upon
holding a quasi-judicial enquiry that a person has
ceased to be an Indian citizen. A foreign passport
Today, persons of Indian origin face problems

due to marital disputes with spouses of foreign
origin or nationality issues arising out of foreign
domiciles. The desirable approach, therefore, would
be to create appropriate forums or authorities
within the legal system that would address such
issues by granting opportunities for hearing and
redressal. Accordingly, deportation or removal of
a person to a foreign jurisdiction would be an abject
surrender to a foreign dominion. Having resolved
to be a sovereign, socialist, secular, democratic
Republic, we in India are capable and competent
of adjudicating our nationality issues to provide
redressal for persons of Indian origin. Our postindependence laws provide the solutions which our
vibrant judiciary interprets to protect fundamental
freedoms guaranteed under the Constitution. Hence,
pre-independence laws in conflict with rights today
must be revoked.
Source: The Hindu
WRITING SAARCS INCOMPLETE CHAPTER
From Kathmandu to Kabul and Dhaka to Delhi,

there is growing recognition that regional
cooperation in South Asia would remain incomplete
unless a culture of respect for the basic rights and
fundamental freedoms of the regions peoples is
fostered through legal guarantees and effective
enforcement. The South Asian Association for
Regional Cooperation (SAARC) countries meeting
[56]
in November in Nepal should take a hard look at

infusing vigour and vitality into this intergovernmental forum.
There are already several civil society initiatives
which emphasise the linkages between peace and
democracy, such as the South Asia Forum for
Human Rights (SAFHR) and the Pakistan-India
Peoples Forum for Peace and Democracy (PIPFPD).
But across national borders, lawyers, activists and

the intelligentsia are making common cause for the
establishment of a formal regional human rights
body, on the lines of similar institutions in existence
in other parts of the world.
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The latest expression of the need for a crosscountry formal body is evident in the Delhi
Declaration issued at the end of the recent national
consultation under the aegis of the Regional
Initiative for a South Asia Human Rights
Mechanism (RISAHRM). More than 100
participants drawn from among neighbouring
countries and 20 Indian States proclaimed, We
resolve to work towards a comprehensive interstate human rights mechanism. The declaration
further goes on to affirm, We the people of South
Asia dedicate ourselves in the immediate and
interim to the establishment of a credible, Peoples/
Citizens South Asia Human Rights Council.
mechanism for South Asia must be regarded a

serious anomaly considering that each of the seven
countries forswear a commitment to democracy and
the rule of law. All the states of South Asia have
ratified the two main United Nations covenants on
civil, political, economic and social rights besides
the 1948 Universal Declaration of Human Rights.
Significantly, with the exception of Pakistan, all
the other countries of the region have functioning,
legally established human rights institutions with
quasi-judicial authority to investigate, if not punish,
violations.
Encouraging initiatives
Similar in spirit was the Lahore Declaration in

June 2014. It called upon the governments of
SAARC to include in the agenda of the November
2014 Kathmandu Summit a discussion on an interstate rights mechanism. The articulation of support
for a regional institution since 2010 onwards has
received strong backing from the RISAHRM and
the Asian Forum for Human Rights and
Development.
In its nearly three-decade history, efforts to
foreground the principles of human rights in the
SAARC discourse have been marginal. There have,
however, been noteworthy departures in the right
direction. These are the two SAARC Conventions
of 2002 to combat trafficking in women and
children and to strengthen regional mechanisms to
promote the welfare of children. The adoption of a
social charter in 2004 echoes a broader commitment
to advance the socio-economic conditions of the
populations in the region. The 2011 SAARC Charter
of Democracy aims to counter the threat of military
takeovers that has remained a blot on the region.
Together, these steps although at best pious
pronouncements are an acknowledgement of
the many formidable common challenges that
hamper peace and prosperity among the people of
South Asia, who make up nearly a quarter of the
global population.
Addressing the anomaly

The absence of a common human rights
The ASEAN Intergovernmental Commission on

Human Rights (AICHR) is the latest among several
regional mechanisms, although its mandate is
merely advisory and to promote public awareness
on critical issues.
The 2004 Arab Charter on Human Rights, for
the Arab League, is enforced by an elected
committee of independent experts, which is
empowered to scrutinise periodic reports submitted
by member states. The Arab Summit in 2013 even
agreed in principle to establish an Arab court on
human rights. The Organization of African Unity
(OAU), now the African Union, in 1981, adopted
the African Charter on Human and Peoples Rights
which led to the establishment of the African Court,
with jurisdiction over the member states.
A more robust framework to monitor and
enforce human rights obtains in the American states
and in the European continent. The Inter-American
Commission on Human Rights adopted the 1969
American Convention on Human Rights, which is
enforced by the Inter-American Court of Human
Rights. The Council of Europe, which is made up
of all the European countries including Russia and
Turkey, is arguably the most vibrant international
body of its kind. The European Convention on
Human Rights and Fundamental Freedoms is
enforced by the Strasbourg-based European Court
of Human Rights.
An opportunity in store
An important inference from the international

experience is that the effectiveness of the
enforcement of human rights is relative to the vastly
dissimilar stages in the evolution of democratic
institutions in different regions. Routine violations
of individual liberties by repressive regimes, and
the exploitation of natural wealth in Africa and
the Americas overriding the interests of their
populations, is stark evidence of the need to
[57]
strengthen the monitoring and enforcement of

democratic rights. The total absence of a regional
mechanism in South Asia falls in an altogether
separate category. The Kathmandu summit of the
SAARC in November presents an opportunity to
build on earlier initiatives that can potentially alter
this scenario.
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The consensus in the Delhi national consultation

in August 2014 was for the establishment of a
human rights mechanism within the overall
framework of the SAARC. Apt was the reasoning
and emphasis that lasting change could be brought
about only through effective law enforcement,
which was ultimately the responsibility of
governments. The most passionate articulation of
this position was from Hina Jilani, former United

Nations Special Representative of the SecretaryGeneral on human rights defenders and chair of
the South Asians for Human Rights. Miloon
Kothari, former U.N. Special Rapporteur on
adequate housing and Sima Samar, Chairperson
of the Afghan Independent Human Rights
Commission (AIHRC) were no less emphatic on
the responsibility of states to their peoples. That is
all the more acute in respect of the leadership of
the nuclear neighbours Pakistan and India, with
the wounds of Partition and the subsequent wars
still festering.
Source: The Hindu
OUTREACH PLANS FOR SCIENTISTS
The decision of the Union Minister of Science

and Technology to tap the talent pool of about
6,000 scientists from institutions and centres that
come under the umbrella of the Department of
Science and Technology, the Ministry of Earth
Sciences and the Council of Scientific and Industrial
Research to give lectures to school and college
students is a good initiative. Scientists dedicating
12 hours a year each to engage with students to
impart scientific knowledge and inculcate a
scientific temper in them is bound to go a long
way in attracting young talent to science and
grooming them. This is a much-needed step as
India, like several other countries, faces an alarming
situation of steadily decreasing numbers of school
students opting for science, and a lack of longterm interest among those who have chosen it.
While the intent behind the initiative is good, a
coordinated approach by different Ministries would
be more effective in achieving the goal. Not
involving scientists from the 32 institutions of the
Indian Council of Medical Research and similar
nodal bodies is unjustified. The lapse becomes all
the more glaring as the outreach programmes are
to be made mandatory and scientists performance
is to be evaluated once every three years. As it
stands, the initiative could cause resentment among
the 6,000 scientists as their counterparts in
institutions that come under other nodal agencies
face no such compulsions. The government should
act swiftly to ensure that all the scientists working
in government institutions become involved in

student outreach programmes. The metrics of their
performance can be used to reward them while
assessing their research proposals and promotions.
Several institutions and individuals in the U.S.
engage in student outreach programmes and India
has a great deal to learn from their experience. We
should make sure that as we belatedly embark on
this ambitious goal, we conscientiously avoid
committing the same mistakes that have been seen
elsewhere. The first and foremost pitfall to be
avoided is compelling scientists to teach science by
replacing teachers. Teaching should be made active
rather than passive. Excellent results can be
achieved when scientists guide students and
teachers to do real science that is open-ended,
inquiry-based and driven by a sense of exploration
which only scientists are best-equipped to offer.
This will foster critical thinking and imagination
and impart skills of scientific investigation. Also, it
will arouse childrens curiosity and set off a series
of questions prior to, during and after a project.
Information and knowledge thus gained remain
indelible, and science becomes fun. The Indian
Space Research Organisations work of guiding
students from a handful of engineering colleges to
build satellites, which were eventually launched, is
one of the best examples of imaginative student
outreach programmes.
Source: The Hindu
A VOTE TO WATCH IN SCOTLAND

More than 300 years after the Act of Union
bound Scotland and Wales to Britain in 1707, the
[58]
Scottish people are going to decide if they want

out of the United Kingdom, or remain within it
but under expanded powers of self-rule. The

September 18 referendum in which nearly 4.3
million Scottish residents will answer the question
Should Scotland be an independent country?
will mark a historic turning point regardless of
whether the vote is yes or no.
Writing in the Sunday Observer, Labour Party

leader Ed Miliband acknowledged the thirst for
democratic and economic change that has been
heard from the people of Scotland, that will lead
to change throughout Britain after 18 September.
He said that Scottish Labour has set out a clear
timetable for further devolution of income tax,
social security and the work programme, not just
for Scotland but for Wales as well.
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From just a 25 per cent approval rating in a

poll taken soon after the closing ceremony of the
London Olympic Games in 2012, the Yes
campaign has built its constituency steadily,
reaching 39 per cent in August this year. By
September, Yes support jumped to 49 per cent,
and is at present neck-to-neck with No. An ICM/
Guardian poll says 42 per cent will vote no to 40
per cent for yes, with 17 per cent undecided yet.
The undecided will clinch the outcome of the
referendum. Survey data suggest that the 65-plus
and 16-24 age groups are polling for the Union,
and the poor for independence, as they have
nothing to lose.
backing the Better Together campaign have

promised substantial devolution with the Labour
Party, which has lost a big section of its support in
Scotland to the pro-Independence side, offering to
devolve income tax, social security and the work
programme, not just for Scotland but for Wales as
well.
Consequences of Yes and No
The Yes campaign comprises the Scottish

National Party (SNP), Labour for Independence,
the Green Party, the Scottish Lefts Radical
Independence Campaign, and many independent
campaign organisations such as Common Weal,
the National Collective, Women for Independence
and Lawyers for Independence. Its supporters
include celebrities like Sir Sean Connery and fellow
Hollywood actor Alan Cumming, film director Ken
Loach, Scotlands national poet Liz Lochhead, and
comedian Frankie Boyle.
The No campaign includes the official
Conservative/Lib-Dem/Labour Better Together
coalition, along with Unionist groups, and the
United Kingdom Independence Party (UKIP). It has
a large celebrity backing including author J. K.
Rowling, and a majority of newspapers and media.
In the event of a Yes vote, a new country

will emerge from a democratic process that has
few parallels in recent times. While the contours of
the alternative political paradigm envisaged by the
campaign and its workability in an independent
Scotland are still hazy, the campaign has won
popular support for a sharp critique of Westminster
policy and governance. A Yes vote will have
profound implications for movements for autonomy
and independence throughout Europe and
beyond.
The consequences of a No vote will be
transformative too. The major political parties
What are the factors that underline the

spectacular increase in the support for the Yes
campaign?
The Yes campaigns salient feature is its
transformation from being a movement solely of
Scottish nationalism to one that is characterised by
a demand for genuine and radical social
democracy. The debate on self-determination is
happening at a time of deep economic crisis. The
erosion of incomes, of jobs, and of health and
housing benefits lie at the heart of popular
discontent. Scotlands current problems started
with the devastating impact of Margaret Thatchers
economic policy, which intensified a decline in
manufacturing and heavy industry from the late
1970s. The New Labour government essentially
continued that policy, which was subsequently
inherited by the Conservative-Liberal Democrat
coalition.
This Scottish debate of discontent will thunder
all across the U.K. in Manchester and
Birmingham and the Northeast, said Gerry Hassan,
author of Caledonian Dreaming: the Quest for a
Different Scotland. People are disgusted with the
food banks and the poverty, the excesses of the
rich, and the inequalities in Scotland, where 432
private individuals own over half of all private
land.
The Red Paper on Scotland 2014 argues that
Scotlands manufacturing economy, level of
research and development, retail trade, financial
sector, and the historically large public sector are
shrinking at a pace faster than seen in the wider
British economy. Most measures for poverty and
that for life expectancy have been consistently worse
than the British average, probably reflecting the
[59]
prevalence of long-term unemployment, low pay

in work and casualised employment, coupled with
a sense of hopelessness and powerlessness.
Pitfalls in Scotland
The positive momentum generated by the Yes
campaign its spread, organisation and
earnestness of purpose, is winning hearts and
minds, and perhaps even the race. The heady
atmosphere of expectations created by the proIndependence campaign combined with popular
disenchantment with the three mainstream parties
has, however, masked some of the sobering realities
of the independence option. These concerns
highlight the pitfalls of a small country with a
radical social welfare agenda going it alone in the
new global order.
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It is not surprising therefore that First Minister

of Scotland Alex Salmonds offer of free and
universal childcare, free university education, better
pensions, withdrawal of the hated bedroom tax,
ending the manufacture of weapons of mass
destruction, and keeping the National Health
Scheme in the public sector has found widespread
response, especially as it comes with assurances
that Scotland will have the economic resources to
underwrite these subsidies.
all parties and walks of life in the negotiations for

a new Scotland if Yes wins. The Scottish
government has produced an interim constitution
to guide us through the stage of negotiations, she
said. There will be broad representation, including
people from the No camp, in the constitutional
convention set up to draft a constitution.
His promises on welfare, however, sit rather

uncomfortably with the Scottish National Partys
economic policy perspective, which advocates
cutting public expenditure, promoting deregulation,
lowering taxation on high net worth individuals,
and reducing corporation tax to attract companies
from elsewhere.
For the present, however, this contradiction has

been papered over, and the SNP has adopted the
agenda for independence set by the strong Left
presence in the Yes block. The socialist left on
the Yes platform sees the referendum as an
opportunity to craft a Scottish road to socialism
through the creation of a welfare state. Alex
Mosson, a Labour for Independence member, is
representative of this swathe of opinion. The former
shipyard worker and Lord Provost (the equivalent
of Mayor) of Glasgow from 1999 to 2003, said,
We are a small country but with the ability and
skills to create a fairer and more just society.
We will undo the privatisation of the NHS

and give healthcare at the point of need. And we
dont want to be part of illegal wars. Despite
differences with the SNP, Left groups in the Yes
campaign believe the party and its leader Alex
Salmond must be given the chance to deliver.
Joanna Cherry Q.C., a lawyer activist in the Yes
campaign, argues that the SNP is a very broad
church of disparate groups. Mr. Salmond, she told
The Hindu, has promised to involve people from
The big decline in the last three decades in

Scotlands industrial economy, with employment
dropping from 650,000 to 179,000 in 2012, was
accompanied by a massive shift in Scotlands
manufacturing base from Scottish and rest of UK
ownership to overseas ownership, according to
the Red Paper on Scotland. If this has been the
impact of globalisation thus far, it has been argued,
a strong and politically reconstructed union would
be better positioned to resist the pressure of global
capital than a state weakened by a split.
In any event, for the Better Together campaign
to win, it will have to gain ground among young,
newly enfranchised voters and voters of working
age. It will have to go beyond the idea that size
matters the bigger the union the better in
the era of globalisation. It will have to persuade
the Scottish people that the U.K. of the future will
be, for Scotland, a different entity from the
Thatcher-era Westminster.
Source: The Hindu
TOWARDS AN ASIAN CENTURY OF PROSPERITY
My first visit to this ancient and magic land

was 17 years ago, a time when the Indian economy
was undergoing reform and beginning to show new
vitality in growth. The market was booming in
Mumbai, the economic centre. Bangalore was
becoming increasingly famous as Indias Silicon
Valley. And Bollywood movies and yoga were
[60]
popular throughout the world. Its people were full

of expectations and the ancient civilisation was
rejuvenated.
Now 17 years later, I am about to once again
visit India, an enchanting and beautiful land that
has captured world attention. India is an emerging
economy and a big developing country. It is Asias
characteristics and advance the modernisation of

national governance system and capability. A total
of over 330 major reform measures covering 15
areas have been announced and their
implementation is well underway.
Under Prime Minister Narendra Modis
leadership, the new Indian government has
identified ten priority areas including providing a
clean and efficient administration and improving
infrastructure. It is committed to building a united,
strong and modern India Shreshtha Bharat. The
Indian people are endeavouring to achieve their
development targets for the new era. China and
India are both faced with historic opportunities,
and our respective dreams of national renewal are
very much aligned with each other. We need to
connect our development strategies more closely
and jointly pursue our common dream of national
strength and prosperity.
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third largest economy and the worlds second

largest exporter of software and agriculture
products. A member of the United Nations, the
G20, the BRICS and other organisations, India is
playing an increasingly important role in the
regional and international arena. The Story of
India has spread far and wide. With the new
government coming into office, a new wave of
reform and development has been sweeping across
India, greatly boosting the confidence of the Indian
people and attracting keen international interest in
its opportunities.
Progress in relations
Relations between China and India have made

significant progress in the new century. The
strategic and cooperative partnership for peace and
prosperity has been established. China has become
Indias largest trading partner, with their bilateral
trade volume increasing from less than US$3 billion
early this century to nearly US$70 billion. Mutual
visits reached 8,20,000 last year. We have had close
coordination and cooperation on climate change,
food security, energy security and other global
issues and upheld the common interests of our two
countries as well as the developing world as a
whole. Progress has been made in the negotiations
on the boundary question, and the two sides have
worked together to maintain peace and tranquillity
in the border area. China-India relations have
become one of the most dynamic and promising
bilateral relations in the 21st century.
Our bilateral relations have reached where they

are today as a result of the following efforts: we
have deepened mutual trust by strengthening
strategic dialogue and enhancing political
confidence; we have brought more benefits to each
other by expanding the areas of cooperation and
making the pie of common interests bigger; we have
forged closer friendship by encouraging more
people-to-people exchanges and cementing popular
support for our bilateral relations; and we have
treated each other with sincerity by respecting and
accommodating each others concerns and properly
managing problems and differences.
Crucial stage of reform
Both China and India are now in a crucial stage

of reform and development. The Chinese people
are committed to realising the Chinese dream of
great national renewal. We are deepening reform
in all sectors. The goal has been set to improve and
develop the socialist system with Chinese
As emerging markets, each with its own

strengths, we need to become closer development
partners who draw upon each others strengths
and work together for common development. With
rich experience in infrastructure building and
manufacturing, China is ready to contribute to
Indias development in these areas. India is
advanced in IT and pharmaceutical industries, and
Indian companies are welcome to seek business
opportunities in the Chinese market. The
combination of the worlds factory and the
worlds back office will produce the most
competitive production base and the most attractive
consumer market.
As the two engines of the Asian economy, we
need to become cooperation partners spearheading
growth. I believe that the combination of Chinas
energy plus Indias wisdom will release massive
potential. We need to jointly develop the BCIM
Economic Corridor, discuss the initiatives of the
Silk Road Economic Belt and the 21st Century
Maritime Silk Road, and lead the sustainable growth
of the Asian economy.
As two important forces in a world that moves
towards multipolarity, we need to become global
partners having strategic coordination. According
to Prime Minister Modi, China and India are two
bodies, one spirit. I appreciate this comment.
Despite their distinctive features, the Chinese
Dragon and the Indian Elephant both cherish
peace, equity and justice. We need to work together
to carry forward the Five Principles of Peaceful
Coexistence (the Panchsheel), make the
international order more fair and reasonable, and
[61]
improve the mechanism and rules of international

governance, so as to make them better respond to
the trend of the times and meet the common needs
of the international community.
As Deng Xiaoping puts it, no genuine Asian
century would come without the development of
China, India and other developing countries. We
are ready to shoulder this mission of our times and
work actively to enhance friendship between China
and India. I look forward to an in-depth exchange

of views with Indian leaders on our bilateral
relations during the visit, and to injecting new
vitality to our strategic and cooperative partnership
for peace and prosperity.
I am confident that as long as China and India
work together, the Asian century of prosperity and
renewal will surely arrive at an early date.
Source: The Hindu
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FEDERALISM IN JUDICIAL APPOINTMENTS
The Supreme Court has dismissed a few writ

petitions challenging the constitutional validity of
the Constitution (99th Amendment) Bill and the
National Judicial Appointments Commission Bill,
2014 (NJAC Bill). The judgment is correct, but not
for the reason that the Bills are faultless. The Bills
are yet to attain the status of law as defined under
Article 13 of the Constitution. A premature
opposition to the legislative move is antithetical to
the facets of deliberative democracy. Article 111 of
the Constitution empowers the President to return
the Bills for reconsideration, which implies the
possibility for modifications. Article 368 says an
amendment of the Constitution could be done
generally when a Bill is passed by a majority of
not less than two thirds of the members present
and voting in each House. Proviso to Article 368(2)
clarifies that in certain cases, ratification by the
legislatures of at least one half of the states is
mandatory. The Union judiciary and the High
Courts in the States come within the ambit of this
proviso. This would mean that in a federal system,
despite the clearance by Parliament, States do have
a say in any attempt for a major constitutional
amendment concerning the judiciary. It is therefore
incorrect to think that the Bills mark an end in
themselves. As such, there is scope for further
debate and a need for it.
A failed experiment
The collegium is not just a failed experiment,

but has also been undemocratic. Therefore, the real
issue is whether the proposed amendment by way
of Article 124A, B and C would really democratise
the method of appointment. It is erroneous to
conceive the issue of judicial appointment as a tussle
between the executive and the judiciary for a final
say in the process of selection to the higher judiciary.
The present Bill is designed in such a way that
both the judiciary and the executive have a role in
the process. It is generally perceived that just two
[62]
members can veto the majority decision in the NJAC

and therefore the mechanism is defective. I would,
however, say that this is a scientific device to oust
the ineligible provided the system is fair and
transparent.
But the system is not supposed to be
transparent, going by the text of the proposed
amendment. Functionally and structurally, the
NJAC would perpetuate many of the basic deficits
and perils of the collegium in a different manner.
A secret process without any benchmark that does
not even accept the need for assessment of inter se
merit would be constitutionally legitimised. No
discussions, no notifications, no applications, no
interviews, no consultations and ultimately no
democratisation either in the process or in the
institution. Openness and transparency are the sine
qua non for any fair method of selection.
Conceptual flaws
There is a serious conceptual flaw with the

present legislative design. An uncomfortable
dichotomy between the constitutional provision and
statutory scheme emerges through the new move.
While the 99th Constitution Amendment Act
would create space for the new NJAC, its
composition and voting pattern are designed not
by the amended Constitution, but by a statute,
namely the NJAC Act. This would indicate that
even the sole advantage of the NJAC i.e., the
requirement for support of five out of the six
members for a valid selection is vulnerable to
statutory amendment by a simple majority in
Parliament. Thus, even without a constitutional
amendment, the limited virtues of the proposed
NJAC would be taken away.
Federalism is a basic feature of the Indian
Constitution as held by the Supreme Court in S.R.
Bommai (1994). On account of the NJAC, it is not
the basic feature of judicial independence that is
guaranteed under Articles 14 and 16 of the

Constitution, an eligible person in India cannot
apply for judgeship in higher judiciary. Nor is there
any system of open nomination. In the U.K., the
concept of equal opportunity is not alien to judicial
appointments. The notification is followed by a
series of statutory consultations. The criteria for
appointment as a Supreme Court judge are
indicated in Sections 50 to 52 of the statute. The
Appointment Commission has a participative,
representative and a democratic character. England
and Wales, Scotland and Northern Ireland are
properly represented in the process of consultation.
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endangered, as is widely misconceived. The

judiciary and the executive at the centre will
annihilate even the limited role for the States in the
selection process in the High Courts. Going by the
text of Article 217 of the Constitution, even after
its alteration by the Supreme Court in the Second
Judges case (1993) and Third Judges case (1998),
the Governor of the State and the collegium at the
High Court level have a participative role in
selection of judges in the High Courts. In the system
now proposed, the NJAC or the President of India
is not bound by the recommendation of the Chief
Justices of the High Courts or the Governors. Section
6(4) of the NJAC Bill envisages consultation with
senior-most judges and eminent advocates in the
High Courts. But their opinion is not binding on
the NJAC. Section 6(7) says the views of the
Governor will be elicited but, again, those are not
binding. Thus those at the Centre, through the
NJAC, will select the High Court Judges, despite
their lack of familiarity with the institutions of High
Courts and lack of State-level mechanism for an
open system for assessment of individual merit. This
nullifies the constitutionally guaranteed federal
traits in the realm of judicial appointments.
The illustrative case of the U.K. needs to be
emphasised in the Indian scenario, for it shows
how the federalist values are incorporated both in
the structure of the Commission and in the
procedures adopted. The Constitutional Reforms
Act (CRA), 2005 in the U.K. was substantially
altered by way of the Amendment in 2013. At
present, there is a 15-member Commission doing
the job of selection of judges to the higher judiciary
and tribunals. Selection commences with an open
vacancy notification.
It is again a paradox that despite the promise
for equality of opportunity in public employment
Federalism is, therefore, not just a matter of

Centre-State relation. It is, on the other hand, a
device to ensure participative role for the
representatives of the States constituting the nation,
in the decision-making process. The larger the body,
the greater the democratic content. In a vast country
like ours, a six-member committee is undemocratic
due to its centralist features. Even the laymen are
part of the Commission in the U.K. It is no more
an employment generation scheme. Continued and
repeated consultations and screening in the British
system ensure that no ineligible hand is inducted
to the higher judiciary. The only valid criticism
against the method in the U.K is that selection
becomes a time-consuming process. But there is no
allegation of judicial corruption. Nor is there
allegation of sycophancy or nepotism. India too
can afford such procedural fairness, for the same
would ensure a clean judiciary, which is a
constitutional imperative for any working
democracy. But the Bills in their present form are
conceptually sterile and incapable of bringing in
radical reforms. This situation calls for dynamic
legislative activism at all levels.
Source: The Hindu
DEVELOPING MODEL VILLAGE CLUSTERS
The Narendra Modi government has launched

an ambitious programme for both rural and urban
development. In his budget speech, Finance
Minister Arun Jaitley said, The Prime Minister has
a vision of developing one hundred smart cities
as satellite towns of larger cities by modernising
the existing mid-sized cities. To provide the
necessary focus to this critical activity, I have
provided a sum of Rs. 7,060 crore in the current
fiscal. For rural areas, Mr. Modi in his
Independence Day speech urged each Member of
Parliament to make one village of his or her
constituency a model village by 2016. After 2016,

two more villages should be selected and after 2019,
at least five model villages must be established by
each MP in his/her area.
These are wise programmes, but if they are
launched without due diligence, they may end up
in enormous wastage of national resources. Here
are some thoughts on how these programmes can
be made effective.
An urban India
It should be clearly understood that it is an
[63]
accruing to the new urban authorities rather than

landowners. The landowners will be compensated
handsomely. Compensation will be two-three times
the value of their land through a combination of
lump sum payment and annuities and with
guaranteed employment for all stakeholders. The
value of land will be determined not by the socalled market value which is difficult to
determine partly because of paucity of land
transactions and partly because of the black money
in many of these transactions but by the present
value of income stream generated from the land
concerned. Assuming a rate of time discount of 5
per cent per year and increase in land productivity
of 2.5 per cent per year becomes a robust method
for determining the value of land for compensation.
When the land is converted to urban usage with
horizontal growth allowing buildings of 10-15
floors, its value will increase by 15-20 times.
Assuming that half of the land acquired will be
auctioned to the private developers at market prices,
the town authorities will earn handsome capital
gains which should be sufficient to develop the
necessary infrastructure with all modern amenities.
The town thus developed will serve the cluster of
villages and provide jobs for many migrants from
the villages.
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iron law of economics (without a single exception)

that as countries get richer, the share of agriculture
in GDP, employment and land use declines over
time. If India aims at achieving affluence over the
coming decades, it must be prepared for massive
urbanisation. Our statistical analysis shows that in
an affluent India, by 2050, more than 80 per cent
of the population will be in cities. Rural population
will decline from about 833 million in 2011 to about
260 million in 2050, while in urban areas, the
population will increase from 377 million in 2011
to about 1,200 million in 2050. Thus, India in the
future will live in towns and cities and not in
villages. The choice before India is whether it will
let urbanisation proceed in an unplanned manner
as it has been doing until now or plan in advance
and create smart towns and cities.
For rural development, one often hears of

providing urban facilities to rural areas. The word
Rurban is often bandied about. However, it
should be understood that modern urban areas
require many complex facilities which cannot be
made available in a very small scale. In India, with
6 lakh villages, the average population of a village
is only about 1,000. It is generally difficult even to
provide basic facilities for health and education in
rural areas as teachers and doctors are simply not
willing to live in these villages without adequate
facilities for their families. Creating model villages
is thus going to be difficult. As villagers get educated
and leave for towns, the so-called model villages
may become half-deserted.
Model village clusters
One possible solution is to build model village

clusters similar to what was done in Chitrakoot in
Madhya Pradesh. In this approach, for 100 or so
villages in each tehsil, a central town with a
population of about 50,000 will be created with
urban facilities. This town will accommodate
teachers, doctors, agricultural extension workers,
agro-industries, etc. These will be created on the
lines of Special Economic Zones with their own
modern rules on land, labour, transport, education,
health, etc. The town will be managed by rural
communities that it will be serving along with
representatives of the urban community in the new
town. The towns infrastructure will be developed
along the principles of sound urban development
before the inflow of residents begins.
Where will the funding for urban development

come from? As has been the case in China, it will
come from the capital gains due to land conversion
[64]
Thus the Prime Minister should urge

parliamentarians to develop such model village
clusters, one every year, so that in 10 years time,
the entire country can be covered.
Self-financing of smart cities
The same principle can apply to the

development of smart cities. These cities will be
smart not only in terms of Information and
Communications Technology but also in the design
of urban physical and social infrastructure and
modern policy regime on business climate and
governance. These cities would, for example, allow
FDI in retail which will not displace any
shopkeepers but become a magnet for new
inhabitants.
The economic base of these cities will be hubs
for knowledge production and knowledge
marketing. Starting with 100 such smart cities in
the next five years, some 800 such cities may be
built over the next 40 years covering all the district
towns. The principle of land conversion and
auctions for part of the land acquired will be the
same as in the village clusters mentioned above.
The infrastructure development of these smart cities
will thus be largely self-financed through capital
gains from land conversion and they would emerge
as model cities which will accommodate nearly 400

million new urbanites between now and 2050.
Thus, both the ideas of rural development and of
urban development are basically sound but they

need some forward planning to be effective.
Source: The Hindu
FOR A VICTIM-CENTRIC APPROACH

provisions and positive rulings will be in a
commanding position to maintain the dignity and
decorum of the court; only those who lack in
confidence will allow themselves to be cowed down
by the intimidating tactics of defence lawyers.
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Court proceedings are generally held in open

courtrooms to ensure transparency under the
maxim, not only must justice be done, it must
also be seen to be done. The recent trend of incamera trial has evolved contrary to this maxim to
ensure confidentiality and to lessen the trauma and
stigma caused to a victim. It also provides protection
from voyeuristic intrusion by the media.
A judge is duty-bound to maintain the delicate

balance between the rights of an accused for a fair
trial and the rights of a victim for protection against
the violation of her dignity. Closed-door proceedings
place an additional responsibility on the presiding
judge to ensure this, as these proceedings are not
open to public scrutiny. Within this constraint, the
innovative survivor support programme of Majlis
in Mumbai provides a ringside view of rape trials.
It becomes an important social responsibility to share
these insights with a wider readership in the hope
of letting in a breath of fresh air within these
cloistered spaces.
Double trauma
Apart from the actual incident of rape, what

rape victims fear the most is the courtroom ordeal.
What comes to mind is a slogan coined during the
anti-rape campaign in the early 1980s in the context
of the acquittal of two policemen. They were
charged with the rape of a 16-year-old tribal girl,
who was poor, in a police station, and had termed
her a liar as there were no marks of injury on her
body. She was raped twice, first by the police and
then by the courts. This still holds true for many
victims, despite the introduction of statutory
changes and positive rulings of the Supreme Court.
Within the hostile environment of a criminal court,
the victim looks up to the judge to get the wrinkles
out of what is a gruelling process. It is the sensitivity
displayed by the judge which alone can save the
situation.
On this subject, trial court judges try to pass
the buck on to defence lawyers saying that it is
they who need to be sensitised. However, it is
entirely up to the judge to take control of the
situation. A confident judge well-versed in statutory
Issue of victims past
As an example, let me discuss the case of 16year-old K, a victim of gang rape which happened
in the pre-amendment era. She was dragged out of
her paying guest accommodation in a slum to a
vacant room down the street and brutally raped
by five men until she fell unconscious. The first
information report (FIR) could be lodged after about
a month, and after the Herculean efforts of a social
worker. The plea by the defence was that K was
the daughter of a sex worker. And as she had a
boyfriend, she herself was of questionable character.
This background provided ample scope for her
humiliating cross-examination by five astute
lawyers. However, the presiding judge remained
firm, relying on the path-breaking Supreme Court
ruling in Gurmit Singh (1996), and did not permit
any questions regarding the victims past sexual
history.
In that case, while overturning the verdict of
the two lower courts, which had acquitted the
accused in a case of the gang rape of a 16-year-old
schoolchild who had been kidnapped from her
examination centre, the Supreme Court had ruled:
Even in cases where there is some acceptable
material on record to show that the victim was
habituated to sexual intercourse, no such inference
like the victim is a girl of loose moral character is
permissible to be drawn from that circumstance
alone. No stigma, like the one as cast in the present
case can be cast against such a witness, for after
all, it is the accused and not the victim of sex crime
who is on trial in the court.
The trial court judge ruled that questions
regarding the credibility of the witness, or her past
sexual history can no longer be entertained after
this ruling. She further commented that it was not
a case of a complaint of sexual assault arising out
of a love affair, but was a case of gang rape. The
[65]
judge ensured that the deposition of the victim was

concluded on the same day, even if it meant a
sitting beyond the court timings. The case finally
ended in a conviction, despite the lapses.
On child victims
Due to the presumption that a victim of sexual

abuse would feel more at ease deposing before a
lady judge, there is a stipulation that, as far as
possible, only lady judges should be assigned to
special courts. However, the belief that all lady
judges are equally sensitive to victims, and that as
a class, lady judges are more sensitive to victims of
sexual crimes than men is not substantiated. It is
not biology which determines sensitivity. Judges
assigned to these courts must be specially exposed
not only to statutory provisions but also to the
mandatory protective measures that are required
to be diligently followed before their assignment to
these courts.
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Let us contrast this with the case of an eightyear-old who lived in a lower class tenement, and
sexually abused by a neighbour, a 26-year-old man.
The incident lasted barely 10 minutes as the child
heard her mother calling out to her and began to
scream. The girl experienced great trauma and
could not describe the incident even to her mother
for two days.
Monitoring courts
During the trial, the child was cross-examined

by a reputed criminal lawyer over three court dates,
where her parents and she had to travel a distance
of two hours each way. The busy lawyer either
came late or pleaded his inability to complete the
cross-examination as he had other matters to attend
to. The court gave in to his request, disregarding
the hardship being caused to the family of meagre
means. The trial was in the designated Special
Court, constituted under the Protection of Children
from Sexual Offences (POCSO) Act, 2012, which
stipulates special child-friendly trial procedures.
Throughout her deposition, the child, of a small

build, was precariously perched on the ledge of
the witness box, so that the presiding judge could
see her and listen to her scared and muffled voice.
This case too ended in conviction. The manner in
which the two trials were conducted shows that
there is a world of difference.
The Sakshi Guidelines (2004) stipulate that in
cases concerning children, the defence lawyer must
first submit the questions in writing to the judge,
and the judge, at his/her discretion, ask only those
questions which are relevant to the incident. But
these guidelines are seldom followed.
We have also witnessed shocking instances of

judges, under the compulsion of having to complete
the trial within the stipulated time frame, and in
the absence of the defence lawyer, asking the
accused to come forward and conduct the crossexamination. This is in total violation of the
stipulation that the victim should not ever be made
to face the accused during her deposition, and that
a screen or a one-way mirror should be installed to
shield her from the intimidating gaze of the
accused.
[66]
There is also a need to monitor the functioning

of these courts and provide mechanisms of redress,
in case of lapses. Closed-door trials cannot be
construed as sacrosanct spaces beyond the scope
of a social audit. Campaigners who were
instrumental in bringing about these changes
cannot abdicate their responsibility once the statute
is enacted. The enactments are only the beginning
of a long-drawn and challenging process.
Sessions courts are formidable and intimidating
spaces meant for the police, criminals and their
lawyers. To turn them into child-friendly spaces
would require special ingenuity which those in
charge of structuring these spaces usually lack. They
need to be stripped of their high podiums, musty
air and black coats and the space needs to be
redesigned from the perspective of victims,
especially children and those with disabilities.
Within their limitations, some judges have been
using simple measures such as the setting up of a
temporary screen or placing a cupboard in a
manner so as to shield the victim during the
deposition and allowing frequent breaks during the
gruelling process of cross-examination. (We have
come across instances where victims have fainted
during the deposition.) Some judges also permit
the victim to enter from the entrance meant for
judges and allow them to wait in their own
chambers until the matter is called out. These are
small but significant gestures which will help ease
the trauma of the victim.
While Delhi has successfully set up special courts
for vulnerable witnesses, for the rest of the country,
this is still a far cry.
Source: The Hindu
NEITHER WARMONGERS NOR WIMPS

to talk about Russias war against the Ukraine. But
every realistic policy has to call a spade a spade.
The EU must not leave any doubt that the
aggression against a state, with which it has an
association agreement will come at a high political
and economic price.
In the Netherlands, from where most of the
victims of the ill-fated flight originated, the incident
triggered a serious policy review: from businessoriented pussyfooting vis--vis Mr. Putin towards
a more resolute stance against Russia. Like many
other European countries, the Netherlands depends
on Russian oil and gas imports for much of its
energy needs and has one of the highest trade
deficits with Russia. For Italy and Germany too,
Russia is an important commercial partner and gas
supplier.
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It is a very German discussion that has been

occupying the media of Europes largest economy
for the last few months. It started with a cover
story in the leading news magazine Der Spiegel
that called on policymakers to Stop Putin. Now.
The conservative daily Frankfurter Allgemeine
Zeitung (FAZ) followed suit with an op-ed
demanding a new double-track-decision that
would show Europes economic, political and
military readiness to retaliate against Russia.
In a largely pacifist country, this air of
hawkishness that brings back memories of the Cold
War could not pass uncontradicted. Garbor
Steingart, Editor-in-Chief of the business weekly
Das Handelsblatt rubbished these articles as
mental conscription calls, an accusation that led
FAZ to speculate about the amount of pressure
Mr. Steingart might face from the German business
lobby: Be nice to Putin, whatever he does,
otherwise our economy will be in trouble.
A policy review
The debate shows in a nutshell what is currently

at stake in the Ukraine: the future of European
foreign policy. The crisis not only reveals the
centrifugal forces that are always at work within
the European Union (EU): different economic
interests and political cultures of its member states
versus a growing need to speak and act as a unified
player. It also shows a deep sense of insecurity of
what a European foreign policy should be. But
every crisis carries with it the seed of a chance.
And this one is pushing the EU in the right
direction.
More than two decades after the end of the

Cold War, it is clear to everybody that Europe
cannot afford to remain divided and indecisive in
a conflict at its own doorstep. The shooting down
in July of Malaysia Airlines flight MH17 over the
Ukraine, widely believed to be by Russia-backed
rebels, brought back memories of war to a
continent that liked to believe that the age of wars
in this part of the world is over.
Pictures of rotting bodies in the badlands of
the Ukraine all 298 passengers died did not
only prove the contrary. In an Open Letter to
German Chancellor Angela Merkel and Foreign
Minister Frank-Walter Steinmeier, 21 German
intellectuals from across the political spectrum
claim: The German government resists persistently
Thats one part of the problem. The other is

that the relationship between the EU and Russia
has not delivered on the promise of a genuine
partnership that seemed to be possible after the fall
of the Berlin Wall in 1989. One might call that
hope for an age of peace, prosperity and democracy
as naive, but it has shaped public opinion in Europe
after the Cold War at a large scale.
Instead, Vladimir Putin, who was once called a
flawless democrat by former German Chancellor
Gerhard Schreder, has proven an unpredictable
neighbour, to say the least. In a drive to secure his
own fragile power basis at home, he seems to be
determined to bring the Ukraine back into Russias
orbit, at any cost. And here, the misunderstanding
begins.
British journalist Ambrose Evans-Pritchard
believes that Mr. Putin is obsessed with an
imaginary threat from an ageing, pacifist Europe
in slow decline. But that underestimates the
attractiveness of the European model that is obvious
to everybody in its vicinity. And it underestimates
the pull that a value-based foreign policy approach
has for those who are lacking the freedoms and
possibilities that the European Union promises.
Obviously, it has given incentives for political
change in the Ukraine. The majority of the people
in the Ukraine want a European-style democracy,
rule of law and free market economy. The Kremlin
has understood very well that this is a threat to
Putins authoritarian and corrupt regime, says
Doris Heimann, a German correspondent in
Moscow, who has covered Eastern Europe for more
[67]
than two decades.
That is the crux of European foreign policy at

the moment. In the European Unions world,
things such as balance of power and armed
intervention are simply not on the table, although
individual member states such as France continue
to undertake military interventions on their own,
writes Kathleen McNamara.
In Germany, things are even more complicated
because national interest hardly counts as a
relevant element of foreign policy. Therefore, every
action has to be justified on moral grounds. The
problem of German security policy is that it neither
asks itself what German interests are nor does it
explain these interests to the people, writes Alan
Posener, correspondent at the conservative daily,
Die Welt.
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While Mr. Putin might satisfy the demand for

a strong Russian posture at home, he has little to
offer even to his own people in the long run.
Andrew Kuchins, Director of the Russia and
Eurasia Program, Center for Strategic and
International Studies (CSIS) in Washington DC,
believes that Mr. Putin, like his Soviet predecessors,
might have decided to avoid necessary economic
reforms because they could destroy his
authoritarian system. While prospects of a positive
economic development in Russia seem to be bleak,
former communist countries that joined the EU,
like Poland, are flourishing economically.
expansion of the sanctions against Russia and largescale financial support for the Ukraine. But do not
mention the military.
The European right
Europe therefore needs to take a closer look at

the implications of its value-based foreign policy.
The EU has taken the right decision to impose strict
economic sanctions on Russia as a reaction to the
Crimean crisis. Under the leadership of Ms. Merkel,
Europe stands united in a major security crisis for
the first time and it proves those critics wrong who
prematurely assumed that a shaken EU makes no
real effort to confront Russia over Ukraine.
It should be added here that the European
extreme right that has gained influence especially
the French National Front and even the German
Euro-critical party AfD (Alternative fr
Deutschland) count among the staunch
supporters of Mr. Putin. And it is clear why: both
Mr. Putin and the populist parties of the right want
to weaken the European Union, for different
reasons. But so far, their influence remains limited.
The buck does not stop here. As Mr. Steinmeier

put it, sanctions alone are no policy. But what
is? This is the background of Germanys heated
discussion
about
warmongering
or
appeasement that rings so much like 1980s
rhetoric.
Economic sanctions can only be one part of an
overall strategy towards Russia. The role of the
military is another element that needs to be reflected
on. While the European public is largely pacifist as
a result of two devastating wars in the 20th century,
policymakers must be aware that European
values become an empty phrase if nothing follows
in case of their violation.
Will Europe stand by and watch how a state
is being destroyed that has opted for European
values? This is the question the signatories of the
Open Letter to Ms. Merkel ask. They suggest an
[68]
As a result, everybody who suggests an element

of military deterrence in a European strategy
towards Moscow, risks being labelled as
warmongering. That does not only weaken
Europes position, but also ignores the fact that
European continent is still heavily militarised.
Other frozen conflictsApart from Russias
aggression against the Ukraine and Mr. Putins plan
for a neo-imperialist Novorossiya (New Russia),
there are several frozen conflicts in South Eastern
Europe and the Caucasus that remain unresolved
and represent a continuing risk of military conflict:
South Ossetia, Abkhazia, Nagorno-Karabakh,
Transnistria, to name just a few. At the same time,
thousands of nuclear weapons are still central to
the security arrangements of the continent.
The Ukraine, under the Budapest Memorandum
on Security Assurances of 1994, gave up the worlds
third largest nuclear weapons stockpile that it had
inherited from the Soviet Union. The memorandum
that was signed by the United States, the United
Kingdom and the Russian Federation included
security assurances against threats or the use of
force against the territorial integrity or political
independence of Ukraine. Europe sees the invasion
of Crimea and Russias interference in the Ukraine
as a breach of international law and Russias
obligations of the Budapest Memorandum.
It is therefore more than justified that a
discussion has started about a military component
in the EUs strategy vis--vis Russia. The Nato
Summit on September 4-5 in Wales discussed a
plan of how to free the Baltic States Estonia,
Latvia and Lithuania as well as the Eastern

European countries such as Poland and Romania
from the fear of being threatened or even attacked
by Russia.
Given this psychological situation of the German

public and the strong economical interests in the
German business community, one cannot expect
that German foreign policy will be coming-of-age
overnight. Neither will the European Union start
acting as the United States of Europe any time
soon. But driven by the dramatic events in the
Ukraine, a far-reaching process has started, in
Germany and in other European countries. For this
time, the EU is on the right path.
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For everybody who lived in Germany before

and after the fall of the Berlin wall, this is a mindboggling return of the enemy in the East. As
German President Joachim Gauck put it in a much
debated speech at the Munich Security Conference
earlier this year, Germany still believes that it is
surrounded by friends.
Security Conference and asks: When, if not now,

is the right time to take steps towards a European
Defence Union?
But this might not be the case anymore. Russia

cannot be seen as our strategic partner anymore,
writes Wolfgang Ischinger, Chairman of the Munich
Source: The Hindu
CRIPPLING COST OF DISPARITIES
Redressing gender imbalances in employment

could remedy the current climate of sluggish global
economic recovery, the Labour Ministers of the
Group of 20 countries were advised last week. This
is perhaps the single most significant theme in the
four joint reports issued by the Organisation for
Economic Co-operation and Development, the
World Bank Group and the International Labour
Organisation ahead of a meeting in Melbourne. One
of them dwells on the implications of the unfolding
demographic transition ageing and fall in fertility
rates. Whereas shrinkage in the size of the
workforce on account of ageing may vary
depending on the time of superannuation, declining
fertility would invariably result in reductions in the
number of new entrants to labour markets. The
economic case for womens participation in the
workforce could not have been stronger, the report
contends. Female employment rates the share of
employed women to the total number of women in
the working age population in the bloc have
seen a steady rise, reaching 60 per cent in 2012.
However, there are variations of more than 10
percentage points in 15 of the 20 countries. These
range from 7 percentage points in Canada to over
50 points in India and Saudi Arabia. The proportion
of youth who are not in education, employment or
training, at 10 per cent in many countries, is a
matter of concern for Indias women.
Recovery in the G20 is also threatened because,
with over 100 million people unemployed and 447

million living on less than $2 a day, consumption
and investment are constrained, argues a second
report. These concerns are important not merely in
instrumental terms; they reflect underlying informal
conditions of employment and the low quality of
jobs which run counter to inclusive growth, shows
a third study. Further, the G20 countries account
for about 70 per cent (1.3 million) of global deaths
from occupational diseases and 221,000 fatal
accidents annually. Recurrent industrial mishaps
in India, China, Turkey and other emerging
economies in the bloc underpin the sharp
discrepancies in compliance with international
safety standards. Addressing each of these
challenging scenarios acquires urgency; not in the
least, against the backdrop of the G20 target to
reorient policies to realise a 2 per cent addition to
overall gross domestic product in the next five
years. As the forum brings together the governments
of nearly two-thirds of the worlds population, its
wide-ranging initiatives could potentially transform
the global response to the most pressing challenges
of this century. The meeting of G20 Finance
Ministers that is coming up this weekend at Cairns
cannot afford to dilute the focus. As such, G20
leaders, who are set to meet in Brisbane in
November, should strive to impart greater
momentum to the changes.
Source: The Hindu
THE LINK BETWEEN SANITATION AND SCHOOLING

The revival of the issue of toilets in schools has
brought to the fore a discussion that has for long
existed among educationists, with varying positions

occupying centre stage at different times. A couple
[69]
complete non-teaching work as well as prepare for

classes. The lack of adequate toilets often
necessitates the locking of toilets by teachers for
their exclusive use. Among poor working conditions
for teachers in schools, the lack of toilets is one,
and probably contributes to teachers less than
desired rate of attendance.
Despite the Act specifying separate toilets for
boys and girls in each school, data from the District
Information System for Education, 2013, shows that
10 per cent of elementary schools (nearly 2 lakh
schools) still do not have functional toilets. In fact,
in 2004, a civil writ petition (No (S) 631) was filed
against the Delhi administration for the lack of
toilets in schools, which resulted in the Supreme
Court asking each State to submit affidavits on the
status of toilets in their respective States. In early
2012, 18 State governments told the apex court in
written affidavits signed by the highest-ranking
bureaucrat in each of these States that they had
met the requirement for toilets in accordance with
RTE norms, or would do so by March 2012. In
addition to the fact that this does not square up
with the official data, if these 18 States have indeed
met the norms as submitted in court, does it mean
we can expect no further action on toilets in their
jurisdictions?
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of decades ago, when the deplorable state of

education began to be noticed, the importance of
toilets was highlighted, and Sarva Shiksha Abhiyan
(SSA) the governments flagship programme for
universalisation of elementary education
included a specific provision for separate toilets for
girls and boys. But soon after, a shift in focus to
learning outcomes made toilets a dirty word as far
as education was concerned, so much so that the
emphasis on infrastructure, and toilets in particular,
was held almost responsible for taking attention
away from learning. Arguments were made that
no correlation could be found between the presence
of toilets and learning levels of children in school;
therefore toilets were an unnecessary expense.
Others claimed that since most poor rural children
did not have toilets at home, they would not miss
them in school either. What they needed was
education, not toilets. The lack of sanitary habits
among people who are not used to toilets and the
issue of who would keep the toilets clean have also
been part of the ongoing debate.
The need for functional toilets
So, where do we stand on these issues today

and what can we expect from the Human Resource
Development Ministry as it tries to fulfil Narendra
Modis promises made on Independence Day?
Perhaps a good place to start is by looking at some
facts related to the provisioning of toilets, their use
and cleanliness, and where the responsibility for
the availability and functioning of toilets lies.
As mandated by the Right to Education Act,

all children are required to spend six hours in school
every day. During this period they would want to
use the toilets. Irrespective of how and where they
relieve themselves when at home, if the school does
not have a functional toilet, they will need to go
outside the school for their bio-breaks. The reality
is that if they do leave the school, they are unlikely
to return. Or if they are not allowed to leave, which
is often the case for fear of the outcome mentioned
above, they could end up soiling their clothes, for
which they are likely to be penalised. A quick look
at the complaints received by the National
Commission for Protection of Child Rights (during
2010-2011, for instance) reveals that many
complaints of corporal punishment were made
because of this reason. Corporal punishment, like
lack of toilets for girls, is a reason for dropouts.
In addition to all children needing toilets in

schools, the teachers also need them. They are
required to spend even longer hours in school to
[70]
There is, in fact, a great deal of ambiguity on

whose responsibility it is to ensure functional toilets
with adequate water facility in schools. Is it the
HRD Ministry or the Ministry of Rural Development
(MoRD) or the Ministry of Drinking Water and
Sanitation (MDWS) or all three?
The SSA has a provision for construction of
toilets which ranges from Rs. 50,000 per toilet
(Himachal Pradesh) to Rs. 70,000 per toilet
(Jharkhand). The provision of sanitation facilities,
however, is the responsibility of the MDWS. As a
result, one finds a peculiar situation where scores
of schools have constructed toilets but without
sanitation facilities or water supply. Their use, if at
all, is naturally limited. What is not clear is who is
responsible for ensuring convergence between these
Ministries.
Minister for Rural Development and Drinking
Water and Sanitation Nitin Gadkari recently
announced that toilets would be delinked from the
Mahatma Gandhi National Rural Employment
Guarantee Act. He announced that the amount
allocated for the construction of individual toilets
would be increased from Rs.10,000 to Rs. 15,000,
for school toilets from Rs. 35,000 to Rs. 54,000,
apart from an increase in the amount for
construction of anganwadi toilets and community

toilets. Does this mean these toilets will be provided
water supply too? At the end of the day, if
functional toilets do not exist in any given school,
who will be held to account?
Keeping toilets clean
If Mr. Modi and the HRD Ministry are serious

about toilets in schools, they will need to do a more
comprehensive rethink of all that it involves. In
addition to an adequate provision of funds cleaning,
sanitation training, maintenance of toilets and other
things, the issue of fixing accountability must be
addressed. Else we will keep visiting the basic issues
over and over again, reformulating strategies and
recommissioning funds.
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Finally, there is the issue of keeping toilets clean.

At present there is no provision in SSA for the
cleaning of toilets. In fact, during a review of the
SSA framework a couple of years ago, this issue
was raised and hotly debated. But it was decided
that in the interest of educating children about
hygiene and sanitation, no other provision should
be made. Instead, the children and teachers should
be encouraged to keep the toilets clean. The reality,
as we all know, is that teachers do not involve
themselves in this enterprise. As a result, the toilets

are either cleaned or not cleaned by children or
more precisely, they are cleaned by Dalit children
because they can be coerced into doing what other
children will refuse to do. If a clean and hygienic
environment is to be provided, some children
should not have to create it for others.
Source: The Hindu
TALKING TRADE AND PEACE WITH CHINA
Xi Jinpings visit was billed as the third by a

Chinese President. This may be right in a technical
sense; not so from a historical perspective. Mr. Xi
is actually the fourth Chinese President to visit
India. The first was Chiang Kai-Shek, President of
the Republic of China.
Chiang visited India in early 1942 soon after

Japan entered the Second World War. As the Tokyo
typhoon swept Southeast Asia, India became vital
for Chinas survival. Chiang travelled to India
seeking to persuade the Indian National Congress
to fully support the British war effort. His long
meetings with Nehru and with Gandhi did not
yield much. And Chiang returned with little more
than the spinning wheel that Gandhi had gifted to
his wife.
Indias strategic role
Yet the visits by Presidents Chiang and Mr. Xi

have more in common than the Gandhian spinning
wheel. For one thing, they underscore Indias
importance in any Asian security architecture. In
the 1940s, when the hegemon in Asia Britain
was knocked off its perch by a rising power, India
played a pivotal strategic role in stopping Japan in
its tracks. Today the situation is very different. Yet,
as Chinas swaggering rise rattles its neighbours,
India is seen as a key player in ensuring a balanced
regional order.
Further, both the visits point to the strategic
quadrangle of China, Japan, India and the United
States. In 1942, China sought American assistance
in enabling India to hold Japan at bay. Now it is

India and Japan that are working together against
any unilateral Chinese attempt to rewrite the rules
of the game in Asia. And the Americans are keenly
backing their moves.
These wider considerations clearly underpin Mr.
Xis desire to woo India. At any rate, his visit may
turn out to be rather more successful than the
maiden foray by Chiang. From Chinas standpoint,
India now appears an attractive destination for
investment. Prime Minister Modi has given
unprecedented political salience to infrastructure
and industry. So, the Chinese are well placed to
play to their strengths. From Indias standpoint,
attracting Chinese investment is imperative for
reviving growth. Besides, its deepening ties with
Japan, Australia and Vietnam have opened up more
room for manoeuvre in Asia.
In commerce, testing the waters
Yet, for a range of reasons, it may be prudent

to temper expectations. First, China is not rushing
to open its coffers to India. Prior to the visit,
Chinese officials had claimed that Mr. Xi would
commit to invest at least $100 billion. But the fiveyear plan inked by the two sides envisages $20
billion of Chinese investment. Clearly, Beijing is
waiting to see if New Delhi can walk the talk. This
is not surprising. Outside of Gujarat, Chinas
experience with big ticket investments has not been
encouraging. This is precisely why the Prime
Minister received Mr. Xi in Ahmedabad. Moreover,
China unlike Japan does not have long
[71]
experience of working in India.

Nevertheless, Chinas inclination to test the
waters implies that Indias trade deficit may not be
adequately offset by capital inflows. To be sure,
the Chinese have also agreed to improve market
access for Indian firms. But it remains to be seen
whether they will deliver on this. The economic
imbalance between India and China, then, may
not be set right anytime soon.
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Second, Mr. Modi appears lukewarm to Mr.

Xis ambitious plans for building multiple silk
roads. Although India has finally agreed to
consider the Bangladesh-China-India-Myanmar
(BCIM) Corridor, it is unlikely to move with alacrity.
Indias own backward linkages from the Northeast
leave much to be desired. In such a situation, going
ahead with a corridor connecting the Northeast
with these countries will be seen as working
mainly to Chinas advantage. Nor does the
proposed maritime silk road connecting Chinas
coastline with various hubs in the Indian Ocean
have much traction in New Delhi.
because the war ended with a unilateral ceasefire

and the subsequent withdrawal by China. In the
Ladakh sector, the question of where exactly
Chinese forces stood after the war remains
contested. The areas where Chinese incursions
occur are claimed by both sides as lying on their
side of the LAC. In the Arunachal Pradesh sector,
the Chinese treat the McMahon Line as the LAC.
But they challenge Indias claim that the Line should
follow the watershed or the highest line of
mountains. They point out that the coordinates of
the McMahon Line as set out in the Simla
Conference of 1914 depart at places from the
watershed. These grey areas south of the
watershed are the places where Chinese
incursions occur in this sector.
Placing these proposals in the ice pail is not

good idea, however. India must realise that these
routes will come up irrespective of its participation.
Countries across the region are drooling at the
prospect of big infrastructure and cheap Chinese
finance. Sri Lanka and the Maldives have lapped
up Mr. Xis plans for a maritime silk road. India,
too, could benefit much from joining these ventures.
For instance, the upgradation of our coastal
infrastructure would considerably aid our
emergence as a serious maritime not just naval
power. Concerns about Chinese presence in the
Indian Ocean can be overdone. In the past three
years, New Delhi has put in place practical
arrangements for maritime security with Sri Lanka
and the Maldives, Seychelles and Mauritius.
Border incursions and claims
Finally, there is the disputed boundary which

cast a shadow on the summit. The Prime Minister
rightly observed that peace and stability along the
borders was crucial to realising the enormous
economic potential of Sino-Indian relations. But his
call for the resumption of talks on clarifying the
Line of Actual Control (LAC) was off-beam. This
can hardly help prevent incursions.
The LAC is supposed to divide the areas that

are under Indian and Chinese control since the
end of the 1962 war. The line, however, was not
mutually agreed upon by the two sides. This was
[72]
Given these differing notions of the LAC, any

exercise in clarification is unlikely to succeed. We
can only agree to disagree. The good thing is that
we know the areas of disagreement. Whats more,
both sides will continue to intrude into these areas.
At one level, this is tactical jockeying. Chumar, for
instance, is the only place along the LAC in Ladakh
which the Chinese cannot directly access. Hence,
the spurt in Chinese probing near Chumar.
Demchok is one of two mutually agreed disputed
areas, but that does not stop India from going
ahead with its activities. At another level,
incursions are essential for both sides to keep
alive their territorial claims.
Towards settlement
Indeed, the only way to put an end to

incursions is to settle the boundary dispute. It is
worth recalling that under Prime Minister A.B.
Vajpayee, India had initially insisted on talks to
clarify the LAC. By 2003, however, the government
came round to the sensible view that these would
not help and that it was essential to kick-start
negotiations on the boundary by appointing special
representatives. The subsequent agreement of 2005
provides an ideal basis for settlement by mutual
concessions. It acknowledges Indias concerns over
places like Tawang by tacitly agreeing that settled
areas are not up for bargaining. It takes Chinas
demands into account by suggesting that the
watershed principle may not be ironclad.
All along, a settlement has proved elusive owing
to political concerns. Governments in both India
and China have baulked at the prospect of selling
a deal to their domestic audiences. Having
insistently laid claims to Arunachal Pradesh, Beijing
is concerned about dropping them for good. Indian
In the run-up to the summit, Mr. Modi and Mr.

Xi were projected as powerful and decisive leaders.
As such, they should be ideally placed to take a
serious crack at resolving the boundary dispute.
Mr. Modi is supposedly free of the baggage that
weighed on the Congress party. He is certainly
capable of making a persuasive public case for a
settlement. Instead of going down the rabbit-hole
of LAC clarification, the government should move
boldly to settle the boundary dispute with China.
Source: The Hindu
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governments, for their part, have paled at the

thought of pushing through a constitutional
amendment one that will require two-thirds
majority in both Houses as well as ratification by
50 per cent of the State legislatures. The problem is
not just of numbers. Even governments with
commanding majorities such as those led by Nehru,
Indira Gandhi and Rajiv Gandhi have hesitated to
grasp the nettle owing mainly to opposition from
within their own party and concerns about adverse
political fall out.
[73]
CHRONICLE
IAS ACADEMY
MOMENTUM
22ND SEPT, 2014 TO 28TH SEPT, 2014

Rajinder Nagar : 18/4, 2nd Floor (Opp. Aggarwal Sweets), Old
Rajinder Nagar, New Delhi-110 060.
Mukherjee Ngr : 706, 1st Floor, Mukherjee Nagar, Opp. Batra Cinema,
Delhi.
Call: 9953120676, 9582263947

CONTENTS
TOPICS
Pg. No.
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National ....................................................................................................................... 4-11

International ............................................................................................................. 12-15
India and the World ............................................................................................... 16-16
Economy.................................................................................................................... 17-19
Science & Technology ............................................................................................ 20-25

Health ........................................................................................................................ 26-27
News in Brief ........................................................................................................... 28-36
Editorial......
Stop and step back ........................................................................................................ 38

United States of Britain? .............................................................................................. 38
A foreign economic policy .......................................................................................... 40
Let in the light ............................................................................................................... 41
Gas and hot air .............................................................................................................. 42

It will take a big vision ................................................................................................. 43
Showing weak judgement ............................................................................................ 44
Once upon a plan .......................................................................................................... 45
Encounter with reality .................................................................................................. 46
New drug era ................................................................................................................. 48
Making in India .............................................................................................................. 49
The nuts and bolts of reviving growth ....................................................................... 50
Indias gateway to the East .......................................................................................... 53
[2]
Weekly Current Affairs 22nd Sept. to 28th Sept., 2014
A wrong corrective ........................................................................................................ 54

Regulate drugs and doctors too .................................................................................. 55
The return of the Eagle in West Asia .......................................................................... 55
Ethiopias agriculture hotline ...................................................................................... 56
Time for action on climate ............................................................................................ 57
Data in the service of the poor ..................................................................................... 58
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A case for whistle-blower anonymity ........................................................................ 60

Unprecedented demand for food aid, says U.N. ...................................................... 61
War against the Islamic State ....................................................................................... 62
A faster, cheaper Mars orbiter ..................................................................................... 65
A global call for climate justice .................................................................................... 66
Contours of caste disadvantage .................................................................................. 68
Mars mission success .................................................................................................... 70
Dangers in disclosure .................................................................................................... 70
Showcasing Make in India ......................................................................................... 71
The Great Stagnation and the G-20 ............................................................................. 71
Dealing with China firmly ........................................................................................... 72
The right direction for Scotland................................................................................... 73
Lessons from Indias cotton boom .............................................................................. 75
Climate change: Burning down the house ................................................................. 75
The right direction for Scotland................................................................................... 76
[3]
NATIONAL
NGT EXPRESSES CONCERN OVER WESTERN GHAT
What is an Eco Sensitive Zone?
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The National Green Tribunal has asked the

Ministry of Environment and Forests (MoEF)
forrepeatedly changing its stand on issues relating
to protection of Western Ghats.The tribunal was
hearing a plea by NGOs Goa Foundation and
Peaceful Society. The society had sought to restrain
the authorities from granting fresh nods to projects
in Western Ghats and said that the region harboured
the largest global population of Asian elephants
besides other mammals like tigers.
The ministry has responded that the state

governments could propose exclusion or inclusion
of certain parts in the ecologically sensitive area
(ESA) after undertaking thephysical verification.
The ministry further said that such proposals
made by the state government after physical
verification would be examined by MoEF before
taking a view on further appropriate action,
including issuing a fresh draft notificationto seek
fresh objections from the public on the proposals
received from the state governments of Western
Ghats region.
Earlier, a panel called The Western Ghats

Ecology Expert Panel, headed by MadhavGadgil
had designated the entire Western Ghats as
ecologically sensitive, and divided it into three
categories. The panel suggested that no mining
should be allowed in the Western Ghats of Goa
andthe mining activities in the remaining two
categories be phased out by 2016. In order to tackle
complexities arising out of it, government has set
up a panel headed by K Kasturirangan. The 10member high-level working group was constituted
to examine the Western Ghats ecology expert panel
report. It recommended prohibition on development
activities in 60,000 sq km ecologically sensitive area
spread over six states.The Kasturirangan report
seeks to bring just 37% of the Western Ghats under
the Ecologically Sensitive Area (ESA) zones, down
from the 64% suggested by the Gadgil report.
The eco sensitive zones are the areas which need

special care with regards to environment and
ecology. Some area are declared as Eco Sensitive
Zones in order to provide better sanctity to protected
areas. These are an additional tool to strengthen the
buffers and corridors around the Protected Area
netwok and to check the negative impact of
industrialization and unplanned development in and
around Protected Areas.
Why India Needs to Protect Western Ghats?
The Western Ghats are very important to India.

They are among the few pristine forests in India
which are home to the sources of major rivers like
the Krishna and Godavari. Most of the plant and
animal species found only in India are found in the
Western Ghats. It has important horticultural and
agricultural species and rich bio-diversity that helps
in climate-proofing the region. Following aspects
mandate the conservation of Western Ghats:
The Western Ghats are a biological hotspot
harbouring 60 Important Bird Areas (IBA), 325
globally threatened species, many endemic
species and sacred groves (Krishnaswamy et
al, 2006), across six states.
The area of 150,000 km2 boasts a varied
ecosystem with a historical Gondwanaland
origin and significant global value.
The Ghats can lay claim to a unique landform
and biodiversity.
Coffee, tea and rubber plantations too have
grown over the years which supourts the
livelihood of many farmers
It is among one of the three biodiversity
hotspots of India.
CABINET APPROVES WITHDRAWAL OF HIGHER EDUCATION BILL

The Union Cabinet has given its approval for
the withdrawal of Higher Education and Research
[4]
Bill, 2011 from Parliament. The decision was taken in

the view of the reservations expressed by the
Parliamentary Standing Committee (PSC) on certain

provisions of the draft legislation. The Bill was
pending in the RajyaSabha.
Measures for effectively regulating distance

and
online
education
in
the
countryRestructuring of the entire UGC
including its regional offices
New measures for enhancing student mobility
and internationalisation in higher education
Measures for reinvigorating the teaching
environment
in
universities
and
collegesMeasures for enhancing quality
research and ushering in a climate of
innovation in the higher education sector
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The aforesaid bill was intended to determine,

coordinate, maintain and promote standards of
higher education and research, and subsume existing
regulatory bodies in higher education including the
University Grants Commission, the All India Council
for Technical Education, the National Council for
Teaching Education and the Distance Education
Council (DEC).
Introduction of performance based system of

release of funds and align it to the
RashtriyaUchchatarShikshaAbhiyan (RUSA)
guidelines
This provision of the bill was opposed by the

PSC. Committee had expressed its concerns on
proposed merging of these bodies. It suggested the
rather than subsuming, these bodies should be restructured and strengthened, taking the long awaited
corrective measures. The interests of staff-employees
of these organizations needed to be safeguarded.
The report also felt that centralization of powers
instead of assignment of roles and functions to the
State Governments were detrimental to the federal
nature of Indian polity. The performance of existing
regulatory bodies would accordingly be reviewed
to identify problems and areas of weaknesses in
them and undertake necessary corrective measures
as required.
Thus, the Government has decided to withdraw
the HE&R Bill, 2011, in view of the suggestions and
recommendations of the PSC. As a further
development,in July, 2014, the Government has
constituted a UGC review committee recognising the
need for restructuring the UGC and reshaping its
educational leadership and regulatory role to address
imperatives and challenges in the higher education
sector in the country.The terms of reference of the
committee include:
Evaluation of the performance of the UGC in
coordinating and determining the standards
of education in universities,
Conduction of an audit of the regulatory reach
of UGC
Requirement of regulatory space for the UGC
vis a vis other regulatory bodies in the higher
education sector
Assessment of regulatory space for the UGC

vis a vis autonomy and accountability of
higher educational institutions
Analysis of the regulatory functions vis a vis
the grants disbursing functions and
recommending changes in the balance between
the two
Regulation of private not-for-profit entities in

higher education and suggest measures to curb
commercialisation.
Higher Education and Research Bill (HE&R Bill)
The Higher Education and Research Bill (HE&R

Bill) was introduced in the RajyaSabha on 28th
December, 2011. The Bill seeks to establish the
National Commission for Higher Education and
Research (NCHER), a General Council and a
Collegium of Scholars. It repeals the UGC Act,
1956, the AICTE Act, 1987, and the National Council
for Teacher Education Act, 1993.
Highlights of Bill
Establishment of NCHER to subsume existing

regulatory bodies in higher education like the
UGC, AICTE, NCTE and the Distance
Education Council (DEC)
The power of NCHER to determine,
coordinate, maintain and promote standards
of higher education and research (university,
vocational, technical and professional
education), other than agricultural education
and minimum standards of medical education
A General Council for NCHER which was to
be a representative body with advisory and
recommendatory functions, in addition to the
powers to approve regulations framed by the
Commission.
Collegium of Scholars which was to be a partly
self-selecting body of about 30 persons of
eminence in higher education and research to
guide the Commission
Establishment of the Board for Research
Promotion and Innovation, to recommend
measures to the Commission to promote and
facilitate research in higher education.
[5]
Establishment of Higher Education Financial

Services Corporation for the disbursement of
grants to higher educational institutions
Key Issues:
Although, the Bill aims to promote autonomy
of higher educational institutions, but certain
provisions of the Bill itself impede such
autonomy. For instance, requirement of
permission from NCHER to enrol students.
The Bill aims to separate the functions of grant

disbursal and regulation of Higher Education
Institutions. However, the NCHER retains
the function of specifying norms for disbursal
of funds.
Some provision of the bill may result into
conflict of interest. One of the functions of
the General Council is to assess the
performance of NCHER.
The Council
includes the Chairperson and all members of
NCHER. This may hamper an objective
assessment of the performance of NCHER.
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The bill has failed to incorporate some key

recommendations of committees such as NKC
and Yash Pal Committee. For example, the
power of allowing the regulator to give degree
granting to an institution was missing in the

bill.
RESTRUCTURING THE SKILL DEVELOPMENT ARCHITECTURE
The ministry of skill development and

entrepreneurship is set to revise the National Skill
Policy. It is in consonance with the government plan
of giving shape to vision of Skill India. Government
aims to go beyond the target of skilling 500 million
Indians by 2022. The policy was formulated by the
labour ministry in 2009 to skill 500 million people
under a standardised framework and in keeping
with international norms and based on industry
demands. The ministry is also working on rolling
out the Skill India mission.
AS a part of restructuring, the government has
set up National Skill Development Agency, under
Companies Act 1956, to coordinate and harmonise
its skill development efforts with private sector. The
Skill Development Landscape in India
As per the World Bank, in India, the working

age population will be far in excess of those
dependent on them and this will continue for at
least three decades till 2040. This has increasingly
been recognized as a potential source of significant
strength for the national economy. But the need is
to equip and continuously upgrade the skills of the
population in the working age group. In recognition
of this need, the Government of India has adopted
skill development as a national priority over the next
10 years. The Eleventh Five Year Plan detailed a
road-map for skill development in India, and
favoured the formation of Skill Development
Missions, both at the State and National levels. To
create such an institutional base for skill
development in India at the national level, a
Coordinated Action on Skill Development with
three-tier institutional structure consisting of the
PMs National Council on Skill Development, the
[6]
agency has been working closely with states and

advising them on effectively implementing skills
programmes at state-level. Skill development is a
key to improve employability and productivity of
youths. The target is to train 500 lakh persons during
the 12th Five Year Plan (2012-2017). Government is
funding skill development activities through 70
schemes implemented by more than 20 ministries
and departments and NSDC. A total of 225 Industrial
Training Institutes have been de-affiliated during
the last three years due to lack of infrastructure,
shifting of location and other reasons. ITIs are now
required to get re-affiliation from National Council
of Vocational Training ( NCVT) after every five
years.
National Skill Development Coordination Board

(NSDCB) and the National Skill Development
Corporation (NSDC) was created in early 2008.
Later in 2013, the Government has constituted
the National Skill Development Agency (NSDA) by
subsuming the Prime Ministers National Council
on Skill Development (PMNCSD), the National Skill
Development Coordination Board (NSDCB) and the
Office of the Adviser to the PM on Skill
Development.The NSDA is expected to discharge
the following functions:
Take all possible steps to meet skilling targets
as envisaged in the 12th Five Year Plan and
beyond
Coordinate and harmonize the approach to
skill development among various Central
Ministries/Departments, State Governments,
the NSDC and the private sector
DEENDAYAL ANTYODAYA YOJANA

A new scheme for the upliftment of the poor in
urban and rural areas has been announced by the
Government of India. The scheme has been named
as the DeenDayalAntyodayaYojana. The main aim
of the scheme is to work towards enhancing
livelihood opportunities for those marginalised
through skill development and other means.
Official estimates show thatmore than Rs.4

trillion of tax demand is locked up in pendency and
litigation in tribunals and courts. The ruling could
affect all similar tribunals set up to decide substantial
questions of law, including the National Company
Law Appellate Tribunal, which is also facing legal
challenge.
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Skill development is an essential objective, in

order to realize the Make in India objective. If India
is to emerge as a manufacturing base to meet global
needs, the only certain way is to empower every
youth of the country with the necessary skills. Skill
development has multiple outcomes including
enhancing employment opportunities, stimulating
economic growth and promoting the self-worth of
beneficiaries.
superintendence. With this, the government will

now have to look at new ways to reduce pending
litigation both on direct and indirect taxes.
The scheme will reach out to the poor in all

statutory urban habitations. National Urban
Livelihood Mission (NULM) that was launched last
year covers only 790 cities and towns. Through new
scheme, the government plans to extend these
measures to all 4,041 statutory cities and towns.
Finer Points of Schemes:
An outlay of Rs.1,000crore has been

provisioned for urban poverty alleviation
during 2014-15.
Half of the allocated amount will be spent on
skill development of over 500,000 urban poor.
The petitions, filed by Madras Bar Association

and others, had challenged a quasi-judicial body
deciding substantial questions of law in appeal.A
substantial question of law, according to precedent,
is one which is of general public importance, or
significantly and directly affects the rights of the
parties involved.
Impacts of Judgement:
NTT was widely expected to be a potential

solution for reducing large scale pendency of
tax cases at various high courts across India.
The judgement may deliver a critical blow to
NTT and create uncertainty about various
other tribunals which are dealing with
substantial questions of law and doing a
satisfactory job by unclogging the high court
systems for other important litigations.
Imparting skills with an expenditure of

Rs.15,000 -18,000 on each person in the case of
the urban poor
The judgement may have far reaching

consequences not only on the tax related
matters but also on the economic growth of
the nation.
Promotion of self-employment and providing

training to the beneficiaries to meet the
demands of the market
Declaring NTT unconstitutional will lead to

widespread confusion amongst the legal and
tax community.
SC Strikes Down National Tax Tribunal Law
The Supreme Court has struck down a law

setting up a National Tax Tribunal (NTT), by terming
it as unconstitutional. The law was enacted in 2005.
The law was proposed to reduce the pile-up of tax
demands locked up in litigation in high courts that
currently amounts to over Rs.4 trillion.
The bench headed by Chief justice R.M. Lodha

quashed sections 5, 6, 7, 8 and 13 of the law,
rendering it ineffective for all practical purposes.
The court held the law unconstitutional on two
grounds. First that it violates the separation of
powers between the judiciary and the executive and
second it is against the principles of judicial
A well thought out strategy will be required to

deal with the expectations from the judicial
system in relation to disputes of technical nature.
The judgement will have repercussions on
speedier disposal of appeals before high courts.
One of the major challenges faced by taxpayers
is the time involved in litigation process
starting from tribunal to Supreme Court.
The government will have to find a way of
ensuring the speedier disposal of appeals.
The committee constituted by the Central
Board of Direct Taxes and government need
to ensure that an alternative dispute resolution
process is legislated to increase the confidence
of tax payers.
[7]
National Tax Tribunal Act
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Article 323B of the Constitution talks about

creation of tribunals by the executive, for specific
matters. NTT is a tribunal constituted for the purpose
of resolution of tax related disputes. It is yet to come
in existence. The institution has been challenged by
the petitioners as being violative of the concept of
separation of powers between the executive and the
judiciary. The NTT Act allowed the executive
extensive control with regard to appointments of
members and procedure of the tribunal. The National
Tax Tribunal was seen as an alternative to high
courts where the tax department or the assessee,
unhappy with the decision of the appellate tribunal,
could file an appeal. The decision of the NTT could
only be challenged in the Supreme Court. The idea
was to move tax cases away from the high courts as
they are already burdened with other cases and

speed up decision-making. It would have also
ensured that different interpretations of law are not
made by high courts, which would have to be
ultimately settled by the Supreme Court. Under the
law, there were provisions which ensured that any
different interpretation of the law would be referred
to a special bench of the tribunal, which would take
a final decision. Since the aforesaid provisions
(sections 5, 6, 7, 8 and 13), constitute the edifice of
the NTT Act, and without these provisions the
remaining provisions are rendered ineffective and
inconsequential, the entire enactment is declared
unconstitutional by the court. The ruling also states
that NTT Act takes away the power of judicial review
of the high courts under articles 226 and 227, as it
provides an appeal directly to the Supreme Court
against an NTT order.
PANEL TO ASSES FLOOD RELIEF OPERATIONS
A five-member committee to assess the ground

situation in the flood-hit Jammu and Kashmir has
been formed by the Supreme Court. The panel will
be headed by a senior registrar of Jammu and
Kashmir High Court and will have secretary
(revenue, relief and rehabilitation) of the state, a
nominee of the central government and the two
presidents of J&K Bar Association as its other
members.
The setting up of the committee has been ordered
by a bench led by Chief Justice R M Lodha in order
to take stock of the rescue and rehabilitation
operations in the state and report back to the court
with incontrovertible findings.The court directed the
committee to file its report within two weeks before
it and also before the J&K High Court, where a PIL
on the issue of securing relief to flood victims has
been filed separately.
In September 2014, incessant rains and floods

have ravaged the state of Jammu and Kashmir. The
floods were caused by torrential rainfall. The affected
regions by these floods include regions of Jammu
and Kashmir in India, as well as Azad Kashmir,
Gilgit-Baltistan and Punjab in Pakistan. The flood
proved to be highly devastating resulting in the
heavy causalities, both in India and Pakistan. The
capital city of Srinagar is also among worst affected.
Many parts of Srinagar, including the Border
Security Force (BSF) HQ in Santnagar& Army
containment in Badamibagh, were inundated, and
vital roads were submerged, by the floods. The
floods occurred as Jhelum breached its bank due to
[8]
heavy rainfall. Multi-agency rescue operations are

going on.
Participatory Fund to Clean Ganga
In pursuance with the announcement made

during election campaign, the Centre is likely to set
up a fund that will be exclusively used for the Ganga
rejuvenation programme.The main idea behind
setting up such a fund is to make the government
scheme a participatory programme by making
common citizen a stakeholder. Prime Minister has
already called for making Ganga rejuvenation a mass
movement.
A number of NRIs and other people have shown
interest in the governments programme. The
government is hence thinking of a fund wherein
common people could make donations. Money
collected under this head would be exclusively used
for the NamamiGangeprogramme.In his budget
speech, finance minister ArunJaitley had announced
an integrated Ganga conservation mission - Namami
Ganga - with an outlay of Rs. 2037 crore for the
year ending next March 31.
However, the issue of rejuvenating the river is a
complex issue since it involves state governments,
local urban bodies, panchayats and others. A close
cooperation among all these is a precursor to achieve
the objective. The government is trying to factor in
all these things and identify the firsts that is needed
to be done. Among all, the immediate challenge is
to address therelease of human waste in the river.The
government has started consultation with
stakeholders and is confident about a result. More

so, after concerned state governments have shown
equal concerns in restoring the flow of the national
river.
PM had already called for specific action plans
to unite the strength of various sections of society
dedicated to Ganga Seva. He identified stopping
fresh generation of pollutants as the first priority.
The PM has also suggested roping in volunteers from

various parts of the country in generating public
awareness and perform Ganga seva by maintaining
specific stretches of the river.The government has
announced to rope in private players for solid waste
and water waste management in 500 urban centre
and this may start with towns on the banks of the
Ganga.
SC ORDERS INDEPENDENT PROBE IN ENCOUNTERS

criminals must be dealt with by the police in an
efficient and effective manner so as to bring them to
justice by following the rule of law.
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Taking a step towards enhancing transparency

and accountability in police administration, the
Supreme Court ruled that an independent and
thorough investigation should be held into encounter
deaths to restore the faith of the public in the police
force.The courtalso held that no out-of-turn
promotion or gallantry award should be given to
police officers involved in encounter killings unless
the gallantry was proved beyond reasonable doubt.
The verdict came on a batch of PILs led by NGO

Peoples Union for Civil Liberties questioning the
genuineness of 99 encounters between the Mumbai
Police and alleged criminals resulting in the death
of about 135 persons between 1995 and 1997. During
the judgement, the law on police behavior has been
laid down by the court. In case of encounter deaths,
a series of procedural requirements are to be
followed strictly. These include:
No police officer should be given out-of-turn
promotion or gallantry award immediately
after an encounter death but only after the
gallantry was proved beyond doubt.
An independent investigation into the
encounter death should be done by the CID
or officers from another police station who
were not involved in the incident.
The judgement was passed by the three-judge

Bench led by Chief Justice of India R.M. Lodha. The
court held that the right to live with dignity applied
to all and the state had no right to take the law in
its hands by way of extra-judicial killings. Taking
reference from the 2011 verdict in PrakashKadam
case, the judgment authored by CJI Lodha recounted
how policemen would not be excused for committing
murder in the name of encounter on the pretext
that they were carrying out the orders of their
superior officers or politicians. Killings in police
encounters require independent investigation. The
verdict regonised that, the killings affect credibility
of the rule of law and the administration of the
criminal justice system.
Giving a severe reprimand to Indian police, court
negated the fact that police in India have to perform
a difficult and delicate task, particularly, when many
hardcore criminals, extremists, terrorists, drug
peddlers, smugglers who have organised gangs,
have taken strong roots in the society. But then, such
The probe should be scientific, welldocumented and provide a decisive finding

on the nature of death in question.
The probe should be open to a magisterial
inquiry and any dissatisfaction about its
fairness could be challenged before a sessions
judge.
Procedural rules also include recording of
intelligence tip-off, registering of FIR and
providing immediate medical aid to the
suspect shot or inform his family in case of
death.
State Directors-General of Police would have
to report encounter deaths before the National
Human Rights Commission every six months.
NPPA Withdraws Price Control Order
In a move that has been welcomed by the

pharmaceutical
industry,
the
National
Pharmaceutical Pricing Authority (NPPA) has
withdrawn its order to fix prices of drugs, which
[9]
are not under the list of essential medicines.

Regarding this, a statement has been issued by
NPAA saying it has withdrawn guidelines for price
control issued under Para 19 of the Drug Prices
Control Order (DPCO), 2013.
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Under the Drugs (Prices Control) Order 2013,

the government already controls prices of all the
348 drugs in the National List of Essential Medicines.
The provision (Para 19) under which the government
can fix the price of drugs is simply defined as
extraordinary circumstances by the law and this
depends on the interpretation of the government.
As a matter of theory, the NPPA can issue price
fixation orders even without publicizing its internal
guidelines under the existing law. These guidelines
would have been publicized to enhance
transparency.
The pharma pricing agency was under pressure

after its price control order on these 108 drug
formulations after finding that the market prices of
these brands widely varied. The NPPA decision has
affected the operating profit of companies negatively
in the range of 2-23%. The key drugs which were
brought under control include diabetes therapies
Gliclazide, Glimepiride, Sitagliptin and Voglibose;
high blood pressure medications Amlodipine and
Telmisartan and cholestrol treatment Rosuvastatin.
The industry had contested the pricing regulators
decision to cap prices of non-essential drugs on the
ground that its reason to invoke additional price
control was not in compliance with law as there
was no market situation that warranted such a price
regulation in public interest.
The withdrawal of order is likely to find favour

with drug companies that have protested and also
legally challenged the order of the National
Pharmaceutical Pricing Authority (NPPA). NPPAs
order to cap prices of new diabetes and heart disease
drugs had invited strong protests and legal
challenges from the drug industry.
However, the withdrawal of the guideline is on

a prospective basis, so the NPPA cannot enforce
similar price caps in future. But the already revised
order may remain. Thus, the price cap on these drugs
still stands. As a result the cases in the court will
remain, and in case the courts feel that it can quash
the NPPA order on the back of withdrawal of the
NPPA guidelines, that is another possibility of
cancellation of the new price control.
Indian Pharmaceutical Industry
India is today one of the top emerging markets in

the global pharmaceutical scene. The sector is highly
knowledge-based and its steady growth is positively
affecting the Indian economy. The organised nature
of the Indian pharmaceutical industry is attracting
several companies that are finding it viable to increase
their operations in the country. According to a major
study by global management and consulting firm,
McKinsey & Company, from a market size of US$
12.6 billion in 2009, the Indian pharmaceutical market
is expected to grow to US$ 45 billion by 2020. Indias
pharmaceutical market experienced a similar boom,
reaching US$ 18 billion in 2012 from US$ 6 billion in
2005. The rise of pharmaceutical outsourcing and
investments by multinational companies (MNCs),
allied with the countrys growing economy,
committed health insurance segment and improved
healthcare facilities, is expected to drive the markets
growth.
Indian pharmaceutical market segments by

value
Anti-infective drugs command the largest share

(17.8 per cent) in the Indian pharma market.
Export data of Indian Pharma Industry (as of

August 2014)
In terms of value, pharmaceutical products

exports have increased at a CAGR of 26.1 per cent
to US$ 10.1 billion during FY0613.
[10]
CENSUS LEAVES 28M PEOPLE UNREMUNERATED

However, some strange facts emerged among the
uncounted.The share of people left out was higher
in some states. In the central zone made up of UP,
Uttarakhand, MP , Chhattisgarh, about 4.2% of the
people were omitted. That is close to the statistically
permissible limit of 5%. But the most bizarre finding
is this: fathers and mothers of the head of the
household were more likely to be omitted. But the
worst were unrelated persons staying with the
family, like servants. Over 15% of these were not
counted.
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A survey known as the Post-Enumeration Survey

(PES) was carried out by Census office to cover about
4 lakh people across the country. It was a near repeat
of the original Census, except that it covered a small
number of people.The survey came out with the
conclusion that the Census of India in 2011 left out
about 28 million people from its headcount. The
enumeration work of Census was finished in March
2011.
The Census office by expressing the ignorance

has said that the 2011 census counted over 1.2 billion
Indians, collecting about 30 bits of individual
information from them, besides 35 other queries
about their households. Compared to this, the
28million uncounted make up just 2.3% of the
population.According to office, this small share
means there is no cause for alarm and no change is
required. In 2001, the net omission rate was roughly
the same, although it was lower in 1991 and 1981.
Such incident occurs because it is hard-to-reach each
and every people, particularly people with no fixed
residence such as street people, and the people who
are travelling.
Justifying the mistake the office said that an

estimated coverage omission rate of 2.3% was by no
means unusual or excessive even if it adds up to 2.8
crore people. It does not really lead to any serious
bias. If the omission rate was higher than 5%, then
a more substantive survey would have had to be
done to correct the Census estimates.
[11]
INTERNATIONAL
EGYPT CHANGES ITS CLOCK AGAIN
again, despite the fact that daytime temperatures
still hover around 300C.
As of midnight Egypt is two hours ahead of
Greenwich Mean Time and six hours ahead of
Eastern Standard Time. The initial switch in May
caused widespread disruptions, particularly at the
airport, when local flight times were changed at the
last minute.There were no reports of major
disruptions this time around. Egypt Air, the
countrys main airline, changed the local timing of
several flights and advised passengers to arrive three
hours early instead of the normal two in order to
avoid any confusion.
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Egypt became the country where for the fourth

time in less than five months the clocks have
changed. After the 2011 uprising toppled long-ruling
autocrat Hosni Mubarak, the switch between
summer and winter time was abandoned. However,
it was abruptly revived in May this year. This time
clocks sprung forward in a move aimed at alleviating
rolling power blackouts.But after few days the clocks
fell back again at the start of the Muslim holy month
of Ramadan to shorten the daily dawn-to-dusk fast.
Ramadan this year fell at the hottest point of the
summer. The clocks returned to summer time when
Ramadan ended in July, but now winter has come
DEAL TO SECURE UNITY OF GAZA
A comprehensive agreement has been reached

between the two main Palestinian factions, Fatah
and Hamas. The deal would likely to turn over the
civil administration of Gaza, to officials of a
Palestinian unity government led by President
Mahmoud Abbas, thereby achieving the objective
of unified Gaza.The agreement is also crucial in order
to present a unified strategy during talks with Israeli
negotiators.Those talks, under Egyptian mediation,
are aimed at reaching a durable ceasefire between
Israel and the Palestinians after the Gaza war, which
killed more than 2,140 Palestinians, most of them
civilians, and 73 on the Israeli side.
The agreement was negotiated in Cairo, the

capital city of Egypt. It is designed to ease the long
blockade of Gaza by Israel and Egypt and open the
way to reconstruction of the war-ravaged coastal
entity. A Palestinian Authority study estimated the
cost of reconstruction in Gaza following this
summers 50-day conflict with Israel at $7.8bn
(4.8bn).
The agreement would allow the Palestinian
Authority to take control over the border crossings
of the Gaza Strip, including the crucial Rafah
crossing into Egypt. This was amongthe key
demands of Egypts president, Abdel Fatah al-Sisi.
Palestinian Authority security forces would also
control the Philadelphia corridor, a key strip
adjoining the border with Egypt. The breakthrough
[12]
deal would formally bring an end to Hamass sevenyear long rule of Gaza. During this time it has fought
three wars with Israel. Hamas asserted its control
over the Gaza Strip in 2007 after winning Palestinian
legislative elections the year before.
Hamas official Mousa Abu Marzouk and Fatahs
head of delegation, Azam al-Ahmad, although,
agreed to a unity deal before the recent war between
Israel and Hamas, plans to implement the
technocratic unity governments, led by Abbas, were
stalled over a series of disputes. Hamas formally
stepped aside in June, but Abbas accusing it of
continuing to run a parallel administration as de
facto ruler in the Gaza Strip.Hamas in turn
complained that Abbass Palestinian Authority was
refusing to pay 45,000 Hamas employees in Gaza.
All civil servants will be paid by the unity
government because they are all Palestinians and it
is the government of all Palestinians.
Who will be allowed to declare war and manage
any future conflicts had been the another key point
of contention.Ceasefire negotiations that ended the
conflict in Gaza stipulated that the Palestinian
Authority led by Abbas should take over
administration of Gaza.Ceding effective control of
Gaza, especially so soon after the end of the latest
round of conflict with Israel, would be a significant
step for Hamas.
During last seven years, both Fatah and Hamas

have clamped down on their rivals in their respective
power bases in the West Bank and Gaza.Years of
attempted mediation had failed to bring the two
sides closer. However, the objective was achieved

with the signing of their reconciliation agreement in
April.
UN ORGANISES CLIMATE GATHERING

international agreement to reduce emissions. It has
commitment periods, the last of which expired in
2012. But it has since been renewed. However the
protocol was never ratified by the United
States.Attempts to negotiate a new treaty ended at
the Copenhagen conference in 2009 and the pressure
is on to avoid a repeat of that failure at the U.N.
talks in Paris next year.
However,the gathering didnt witness any

representationfrom the leaders of China, the worlds
biggest polluter and India, the number three carbon
emitter.Mr. Ban kicked off the summit alongside
former U.S. Vice-President and climate crusader Al
Gore, Hollywood celebrity Leonardo DiCaprio,
Chinese actress Li Bingbing and RajendraPachauri,
head of the U.N. climate panel, which won the Nobel
peace prize in 2007.Leaders were to take turns at
the podium, from President Barack Obama
representing the worlds second biggest polluter to
Prime Minister EneleSopoaga of the Pacific islandnation of Tuvalu, which faces the prospect of being
wiped out by rising sea waters.
At a Major Economies Forum in the New York,

Union Minister of State for Environment
PrakashJavadekar has stressed on the responsibility
of developed countries to finance climate mitigation
actions. He said the basic principles and provisions
of the United Nations Framework Convention on
Climate Change (UNFCCC) would apply to all
aspects of the Intended Nationally Determined
Contribution (INDC). Any review of domestically
determined contributions would not be acceptable
to many countries including India. The
implementation by developed countries of their
commitments on finance and technology transfer
under the UNFCCC would be an essential prerequisite and foundation for enhancing the actions
and contributions of developing countries. The
INDCs or expected commitments from countries
are expected to be fused into the new climate treaty
next year in Paris. The Minister called all countries
agreed to submit INDCs by 2015.
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The United Nations opened the largest gathering

of world leaders on climate change in New York.The
gathering was organized amid calls for action to put
the planet on course toward reversing global
warming. The summit has been hosted by U.N.
Secretary General Ban Ki-moon and was attended
by 120 world leaders. Diplomats and climate activists
see the event as crucial to building momentum ahead
of the Paris conference in late 2015. The Paris
conference is aimed to yield a deal on reducing
greenhouse gas emissions after 2020.
The summit talks are separate from the

negotiations held under the U.N. Framework
Convention on Climate Change (UNFCCC), which
will culminate with the Paris conference in December
2015.The 1997 Kyoto Protocol was the first
MoEF Calls Developed Nations to Take

Responsibility
POLITICAL TURMOIL IN YEMEN
The Yemeni government headquarters was

seized by Shiite rebels leading to the resignation of
the premier Mohammed Basindawa. The decision
was taken on account of the violence raged despite
a UN announcement of a power-sharing deal to end
days of fighting. His resignation had come as rebels
overran state radio, the general command of the
armed forces, headquarters of the sixth military
region, the fourth brigade and the defence ministrys
media arm,
Before the resignation, a national peace and
partnership agreement based on the outcomes of the
national dialogue conference was signed at the
presidential palace in Sanaa. President Abdrabuh

Mansur Hadi, United Nations envoy Jamal Benomar
and representatives of Yemens political forces,
including the Shiite rebels, attended the signing
ceremony.The agreement calls for the formation of
a new government within one month. Under the
deal, Hadi will also appoint advisers from the Shiite
Ansarullah rebels and southern separatists. A new
premier to replace Mohamed Basindawa will be
named by Hadiand must be neutral and not
belonging to any party.
Under the accord, the rebels must hand over
institutions they have seized, dismantle protest
[13]
However, after an apparent surrender by security

forces, the rebels swooped on key institutions across
Sanaa, including the government headquarters and
military sites.The rebels had advanced into Sanaa
from their mountain stronghold in the far north and
set up armed protest camps to press their demands
for political change.The rebels have demanded posts
in key state institutions as part of their push for
greater political clout.
Yemen has been swept by political turmoil since
longtime strongman Ali Abdullah Saleh was forced
from the presidency in early 2012. The rebels hail
from the Zaidi Shiite community, that makes up 30
percent of Yemens mostly Sunni nation but the
majority community in the northern highlands,
including the Sanaa region.They have battled the
government on and off for a decade from their
stronghold of Saada in the far north.
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camps they set up in and around Sanaa and

immediately end all acts of violence. After the deal
was signed, the rebels began withdrawing from
government buildings in a handover overseen by
Defence Minister General Mohammed Nasser
Ahmed.
After consulting his newly appointed advisers,
Hadi is expected to name the ministers of defence,
interior, foreign affairs and finance. The new premier
will choose the remaining ministers from among
candidates presented to him from the various
political parties. Hadi had already agreed to bring
the rebels into a new government to replace the
unpopular administration that imposed austerity
measures, including a fuel price hike. UN chief Ban
Ki-moon said the agreement marked a positive step
towards political stability and peace in the country.
FIJI ROLLS BACK TO DEMOCRACY
After the results of the Fijis election confirmed

the winning of the Fijis military ruler Voreqe
Bainimarama, he sworn in as the South Pacific
nations elected leader. This was the first election in
the island nation since he led a coup eight years
ago.After the ceremony he expressed his plans to
travel the U.N. General Assembly in New York, where
he would describe his nations move to democracy.
According to results released by the Fijian

Elections Office,Bainimarama and his Fiji First party
won an outright majority in the Parliament by taking
32 of 50 seats. The opposition Social Democratic
Liberal Party (Sodelpa) won 15 seats and the
National Federation Party won three. The election
was first since Bainimarama seized control in a 2006
coup. Bainimarama defended the coup and thanked
the military, whom he credited with creating the
conditions for democracy.
Voter turnout was 84 percent with almost 500,000

ballots cast, showing a landmark transformation of
the nation as democracy. Bainimarama alone won
just over 200,000 votes, and, when other candidates
from his party were added, Fiji First won 294,000
votes, or 59 percent of the total. Sodelpa candidates
won 140,000 votes, or 28 percent of the total.
Parliamentary seats are allocated under a
proportional system. However, five opposition
parties that contested the election say they dont
accept the result due to voting irregularities. But a
group of 92 international observers said the election
was credible and they saw no evidence of fraud. It
said the result broadly reflects the will of voters.
The Multinational Observer Group wrote in its
preliminary findings, the election was
enthusiastically embraced by the voters of Fiji who
were keen to participate in the democratic
process.The groups endorsement paves the way for
international sanctions to be dropped, including Fijis
[14]
likely return to full status among the Commonwealth

group of nations.
FIJIS COUP
Fiji is an island country in Melanesia in the South

Pacific Ocean. It lies about 1,100 nautical miles
northeast of New Zealand's North Island. The island
nation witnessed a coup d'tat in December 2006. It
was occurred as a continuation of the pressure which
had been building since the military unrest and political
crisis. Fiji had seen four definitive coups in the past
two decades. The tensions between the ethnic Fijians
and Indian Fijians lie at the heart of the previous three
of these coups. The majority of ethnic Fijians belong to
the Methodist church whereas the majority of the
Indians are Hindu. The church in Fiji frequently played
a significant role. Methodist church leaders supported
the 2000 coup and the subsequent proposal to pardon
those involved. The matter came to head when the
possibility of declaring Fiji a theocratic Christian state
was proposed. This has brought JosaiaVoreqe "Frank"
Bainimarama, leader of the December 2006 coup, in
conflict with the Methodist church. A long running
conflict between the government and military of
the Republic of the Fiji Islands (Fiji) reached crisis point
in early December 2006. The immediate cause for the
unrest were three bills under consideration by the Fijian
parliament, one of which would question the illegality
of the Fiji coup of 2000 and offer pardons to some of
the people who participated in it. Nine demands were
handed down from Commodore JosaiaVoreqe (Frank)
Bainimarama to Prime Minister LaiseniaQarase largely
pertaining to issues concerning these bills.
Bainimarama gave an ultimatum to Qarase to concede
to these demands or to resign from his post by 1
December. This was then deferred to 4 December. The
failure to comply with the order resulted in the coup
on December 5.
GHANI ELECTED AS AFGHANS NEW PRESIDENT

Ashraf Ghani was declared as Afghanistans next
president after signing a power-sharing deal with
his rival Abdullah that ended a prolonged standoff
over the disputed result. Ghani was the finance
minister of the country. The allegations of massive
fraud in the June election sparked a political crisis
as both candidates claimed victory. All this
happened at the time US-led troops were winding
down their 13-year war against the Taliban.
During the election process fraud was committed

from all sides. Ghani was widely acknowledged to
be on the brink of the presidency after coming well
ahead in preliminary results before the audit began.
Under the constitution the president wields almost
total control, and the new government structure will
face a major test as the security and economic
outlook worsens. As tensions rose in Kabul, the UN
and the US pushed hard for a national unity
government to avoid a return to the ethnic divisions
of the 1990s civil war, which ended with the Taliban
taking power in 1996.
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The deal allowed Abdullah to nominate his

choice for the new post of chief executive officer
(CEO), which would be similar to prime minister.
The Independent Election Commission declares Dr
Ashraf Ghani as the president, and thus announces
the end of election process.
remain in Afghanistan fighting the fierce Taliban

insurgency alongside Afghan soldiers and police.
NATOs combat mission will end in December, with
a follow-on force of about 12,000 troops likely to
stay into 2015 on training and support duties.
However, the ruling coalition between opposing

camps is likely to be uneasy. Abdullah, a former
anti-Taliban resistance fighter and foreign minister,
draws his support from Tajiks and other northern
ethnic groups. Ghani, an ex-World Bank economist,
is backed by Pashtun tribes of the south and east.
After former president Karzai refused to sign a
security pact with Washington to ensure a foreign
military presence after this year, the future of
Afghanistans relationship with the US-led North
Atlantic Treaty Organization (NATO) alliance will
also be high on the agenda.
The new administration will have to stabilize
the economy as international aid falls, and deal with
worsening unrest. About 41,000 NATO troops
After being finalized for the post, new presidentelect pledged in his victory speech on to give women
prominent roles in his government and told his
nation that women are important to the countrys
future. He said he wants Afghan women represented
at the highest levels of government, including on
the Supreme Court, where no female justices have
ever served.He termed the girls as the future Afghan
leaders promised them to give equal rights in society
and government. Mary Akrami, the head of the
Afghan Womens Skills Development Centre,
welcomed such sentiments but hoped they would
be followed by action. She noted that Afghan women
suffer heavily from family violence.
[15]
INDIA & THE WORLD

A TREATY TO CONTROL ARMS TRADE
control the transfer of arms and arms components
and to regulate arms brokers. It is not designed to
control the domestic weapons within any country.
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More than 50 countries have ratified an ambitious

treaty designed to regulate the multibillion-dollar
global arms trade. Following the ratification it will
take effect on Dec. 24. Secretary General Ban Kimoon said in a statement that since more than 50
countries have now ratified the treaty, it will take
force at earliest.
The latest countries to ratify the treaty are the
Bahamas, Portugal, Saint Lucia, Senegal and
Uruguay. The treaty can help curb the spread of
deadly weaponry into irresponsible hands and
provides a legally binding commitment.53 countries
including many major arms exporters have now
ratified the measure, aimed at stemming the
worldwide trade in illegal weapons, which is
estimated to generate between $60 billion and $85
billion annually.The treaty will require countries that
ratify it to set up a system of national regulations to
What is Arms Trade Treaty?
The General Assembly, On 2 April 2013, adopted

the landmark Arms Trade Treaty (ATT). The treaty
seeks to regulate the international trade in
conventional arms, from small arms to battle tanks,
combat aircraft and warships. It will foster peace
and security by thwarting uncontrolled destabilizing
arms flows to conflict regions. It will prevent human
rights abusers and violators of the law of war from
being supplied with arms. It will help keep
warlords, pirates, and gangs from acquiring these
deadly tools.
Highlights of Treaty:
It aims to set standards for all cross-border

transfers of conventional weapons ranging
from small firearms to tanks and attack
helicopters.
Governments have responded, and the

momentum remains strong with states from Latin
America, the Caribbean, Europe and Africa but the
world is still wracked by conflict, civilians are paying
the cost with their lives. The arms trade is still out
of control. This is a huge opportunity, a chance to
change the arms trade. The need of the time is the
ratificationof the treaty by all nations, to give it more
impact.The United States has signed the treaty but
has not ratified it in the U.S. Senate. It is strongly
opposed by the influential National Rifle
Association,a powerful U.S. gun lobby, even though
the treaty only covers weapons exports, not domestic
gun sales.
It has the ambitious aim of responding to
international concern that the $70 billion a year
trade in conventional weapons leaves a trail
of atrocities in its wake.
The treaty calls for the international sale of
weapons to be linked to the human rights
records of buyers.
It requires countries to establish regulations
for selling conventional weapons.
It calls for potential arms deals to be evaluated
in order to determine whether they might
enable buyers to carry out genocide, crimes
against humanity, or war crimes.
The treaty also seeks to prevent conventional
military weapons from falling into the hands
of terrorists or organized criminal groups, and
to stop deals that would violate UN arms
embargos.
[16]
ECONOMY
INDIA OPPOSES GLOBAL PLAN TO MAKE TAX ARBITRATION BINDING
be instrumental in getting information about
unaccounted money stashed abroad and ultimately
bringing it back.One of the first steps taken by the
government in this direction was to constitute a
special investigation team to bring back black money.
For a better implementation, the new global
standards on automatic exchange of information
should be implemented with a common timeline
with coverage of as many countries as possible.
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A proposal seeking to make arbitration binding

and mandatory under the mutual agreement
procedure (MAP) to resolve disputes in tax treaties
has been opposed by theIndia. India contended that
it would impinge on its sovereign rights.
The arrangement was proposed by the

Organisation for Economic Co-operation and
Development
(OECD).
It
released
its
recommendations to effectively tackle so-called base
erosion and profit shifting (BEPS) to ensure that
multinational companies do not evade taxes in the
countries they are operating in. The suggestions aim
to create international tax rules to end the practice
of companies artificially shifting profits to low-tax
jurisdictions. This is a common practice that hurts
countries such as India that are considered to be a
lucrative market.
At the Group of Twenty (G-20) finance ministers

meeting in Cairns, Australia, minister of state of
Finance, NirmalaSitharaman said that while India
supported the BEPS project, it was necessary to
underline that the concerns of developing countries
regarding BEPS may be different from those of
developed countries. She further contended that
these concerns should be taken into account while
developing a consensus on the issue. Some
companies operating in India, such as Nokia, have
been looking to invoke MAP to sort out disputes
with the Indian tax authorities. One of the major
concerns of the developing countries is the approach
adopted for making dispute resolution mechanisms
more effective.
She welcomed the new global standard on the
automatic exchange of information, which would
enable automatic exchange of information between
all countries about taxpayers hiding their money in
offshore financial centres and tax havens through
multi-layered entities with non-transparent
ownership. This would be the key to prevent
international tax evasion and avoidance and would
India has also asked countries to make necessary

legislative changes in their domestic laws so as to
enable them to provide the same level of information
to other countries as they would be receiving from
those countries. India is hopeful that it will be able
to access seamless information about its taxpayers
from countries including Switzerland and Cyprus
once the agreement comes into force.
Issues Involved in BEPS
The base erosion and profit shifting (BEPS)

proposal includes the introduction of mandatory
and binding arbitration in the MAP of tax treaties.
As pointed out by experts and Indian leaders, this
not only impinges on the sovereign rights of
developing countries in taxation, but also limits the
ability of the developing countries to apply their
domestic laws for taxing non-residents and foreign
companies. BEPS has been a cause of concern for
developing and emerging economies for long as it
erodes their tax base, depriving them of muchneeded resources for developmental activities. At
present, under MAP, outcome depends on both
countries agreeing to the outcome of the arbitration.
What is being proposed is to make this binding to
both parties irrespective if one side disagrees, which
India is opposing. While India wants to retain the
right to disagree, the flip side is that the finality
under MAP may not be reached and cases may not
get settled.
RBI PANEL RECOMMENDS FOR HUMAN RESOURCE DEVELOPMENT

With an aim to set up a centre of excellence for
leadership development and a skills registry in the
banking sector, a panel constituted by the Reserve

Bank of India (RBI) has recommended a common
[17]
banking aptitude test for bank personnel at entry

levels. The report was authored by a 10-member
committee headed by former RBI executive director
G. Gopalakrishna. The terms of reference of
committee was reviewing training and development
of personnel in the financial sector.
Special recruitments based on job roles and

competency could also be considered.
Creation of a new position of chief learning
officer in banks, and coaching and mentoring
programmes for top management personnel
to ensure continuous training to employees.
Banks should plan their talent and leadership
requirements at least five years in advance
Placement of employees must be well planned
rather than discretionary.
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Human
resources
experts
say
the
recommendations are aimed particularly at public
sector banks that make up 70% of assets in the
banking system, but have been hit by a talent crunch.
State-run lenders are struggling to attract young
executives and have been losing mid-level executives
to higher-paying private sector counterparts. The
situation in public sector banks will be aggravated
as and when new banks are given licences and they
start tapping public sector lenders for talent. At
present, top management in public sector banks are
close to retirement and risk-averse. These banks need
younger people, lateral entry and diversification.
However, these recommendations cannot be applied
at the industry level because the way different banks
and non-bank financial companies view their HR
(human resources) practices would be different.The
central bank panels report is focused on human
resources intervention that would be required for
improving the efficiency of personnel employed at
various levels by banks and non-banking financial
companies regulated by RBI.
Common banking aptitude test for bank

personnel at entry levels
Recommendation of Committee:
Panel recognisedone of the major bottlenecks

faced by the banks is finding suitable replacement
of talent that is necessitated on account of attrition,
retirement, etc.To tide over this issue various steps
are needed to be taken. The major recommendations
of the panel include:
Developing an expert pool internally and
allowing free movement of talent within the
organization for creation of a larger workforce
of trained personnel.
The time for generalist officers could be over

and public sector banks now have to make
their staff specialized.
Corporate banking, retail banking, treasury,
risk, finance, technology, and HR will
increasingly require staff with relevant
aptitude. Banks need to identify 56 such
tracks within which the staff can be groomed.
Banks should in due course also design
suitable policies to provide exposure to
different domains to generalize the specialists
at a senior level to help facilitate career
progression.
It is no more sufficient to recruit fresh talent
at the entry level as retirements over the
medium term will lead to a disappearance of
skill sets and know-how at senior levels of the
organization.
Banks will have to identify manpower to
preserve these skill sets and such requirements
have to be taken into account while projecting
supply of staff, net of retirement, in the same
job families.
Certain job families like credit, treasury and
technology are typically in deficit and need to
be planned for at various levels.
CENTRE PLANS TO REVIVE PSUS
With an aim to enhance productivity of public

sector undertakings (PSUs), the government had
begun the process of reviving five ailing PSUs. Out
of 11 sick PSUs, the process for revival is aimed
only forfive andfor the remaining six units, which
cannot be revived;it has been decided to make a
one-time settlement proposal of VRS for the
employees of these units. For this, the government
is working voluntary retirement scheme entailing a
cost of Rs.1,000crore. The one-time settlement
[18]
proposal for six terminally ill PSUs can help to

eliminate higher recurring expenditure.
For last several years, Governmenthas been
paying salaries to all the employees sick PSUs and
till now Government has spent Rs.3,000crore. The
state-run units, which have been identified by the
government for revival, include HMT Machine
Tools; Heavy Engineering Corporation; NEPA;
Nagaland
Paper
&
Pulp
Co;
and
TriveniStructurals.The six companies which cannot

be revived are: Hindustan Photo Films; HMT
Bearings; HMT Watches; HMT Chinar Watches;
Tungabhadra Steel Products Ltd; and Hindustan
Cables. These six companies have employee strength
of 3,603.
MCX-SX has shifted its office to the new office

premises in BandraKurla Complex and also moved
the data centre to Tata Communications. Shifting of
the data centre has also helped the exchange in vastly
improving its latency.
As per the recommendations of the Board for

Reconstruction of Public Sector Enterprises (BRPSE),
the government/holding companies have approved
revival of 48 out of 58 central public sector
enterprises (CPSEs) and closure of four out of six
CPSEs.
What is MCX-SX?
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MCX-SX stands for Multi Commodity

Exchange-Stock Exchange Limited (MCX-SX). It is
recognised by Securities and Exchange Board of
India (SEBI) under Section 4 of Securities Contracts
(Regulation) Act, 1956. Since its advent it was only
limited to the commodity trading but subsequently
the Exchange was notified as a recognised stock
exchange under Section 2(39) of the Companies Act,
1956 by Ministry of Corporate Affairs, Govt. of
India, on December 21, 2012. Shareholders of the
Exchange include Indias top public sector banks,
private sector banks and domestic financial
institutions who, together hold over 88% stake in
the Exchange. MCX-SX is subjected to CAG Audit
and has an independent professional management.
In line with global best practices and regulatory
requirements, clearing and settlement of trades done
on the Exchange are conducted through a separate
clearing corporation
MCX-SX Clearing
Corporation Ltd. MCX-SX offers an electronic,
transparent and hi-tech platform for trading in
Capital Market, Futures & Options, Currency
Derivatives and Debt Market segments. The
Exchange has also received in-principle approval
from SEBI for operationalizing SME trading
platform. MCX-SX launched Capital Market
Segment, Futures and Options Segment and
flagship index SX40 in February 2013. SX40, is a
free-float based index consisting of 40 large-cap,
liquid stocks representing diverse sectors of the
economy. Its base value is 10,000 and base date is
March 31, 2010. The index is designed to be a
performance benchmark and facilitate creation of
efficient investment and risk management
instruments.
Renaming of MCX-SX
After receiving the approval from capital

markets regulator SEBI, MCX Stock Exchange
(MCX-SX) renamed itself as Metropolitan Stock
Exchange of India Ltd or mSXI. The reclassification
of MCX and Financial Technologies as nonpromoters has led the MCX Stock Exchange toplan
a name change and move out its head office from
Jignesh Shah-owned Exchange Square at city suburb
Andheri.
The name change is intended to give the
exchange a new identity, disassociate from its
original promoters and shift to a high growth phase.
Itis a part of the turnaround strategy. This will also
sharpen the focus on raising the brand visibility and
member engagement programs linked to the
exchanges activities.
The exchange is in the process of making an

application to the Registrar of Companies (RoC)
for registration of the new name.The board of MCXSX approved the proposal to rechristen the exchange
a few months back and subsequently it submitted
an application to SEBI. The trading operations will
remain seamless as the exchange would migrate to
the brand identity over the next few months upon
RoC approval.
[19]
SCIENCE & TECH.

MANGALYAN ENTERS MARTIAN ORBIT
The former Soviet Union and the U.S, who began
their Mars pursuits in the 1960s, as well as Japan
and China, failed in their first attempt to put their
spacecraft into Martian orbit. The US Mariner-3
failed in 1964 and the Japanese Nozomi did not make
it in 1998. Russias Phobos-Grunt mission, with a
Chinese payload, failed in 2011.
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India has successfully reached Mars.The Mission

Operations Complex-2 (MOX-2), the nerve entre of
Indias Mars mission witnessed a moment of cheer
with the successful induction of Mangalyan in the
orbit of Mars. India had accomplished a gigantic
feat of putting a spacecraft in orbit around Mars in
its first attempt and created a history by becoming
the first country to successfully get a spacecraft into
the Martian orbit on its maiden attempt. It has also
become the first Asian country to send mission on
Mars.Mangalyaan cost $74 million, making it the
worlds cheapest interplanetary mission
The ISRO has launched its first orbiter to Mars

on November 5, 2013. The success came
approximately after 10 months, when the main
Liquid Apogee Motor (LAM) and the eight small
thrusters on the orbiter ignited simultaneously and
enabled the crucial manoeuvre. All the engines fired
flawlessly for 24 minutes and reduced the
spacecrafts velocity by 1.09 km per second; this
contained the spacecraft in an orbit around Mars.As
it goes around Mars on an elliptical orbit with the
closest point around 420km and the farthest around
80,000km, MOM will employ five equipment that
collectively weight 15kg to do scientific studies.
The Lyman alpha photometer, fitted in MoM,
would measure the relative abundance of deuterium
and hydrogen in the upper Martian atmosphere to
understand previous presence of water on the red
planet. A methane sensor will look for sources of
the gas. While the Mars colour camera clicks away,
a thermal infrared spectrometer will study heat
emission, minerals and soil on Mars.
The scientists of ISRO have been commended
by the Prime Minister for achieving such a gigantic
and near impossible task.Before India, various
countries have launched Mars missions, but out of
the 51 attempts, only 21 were successful. India now
joins the Martian club that comprises the US, Russia
and the European Space Agency. Only the European
Space Agency has got its orbiter right in the first
attempt (Mars Express in 2003), but India can claim
a first since the agency is a conglomeration of several
countries.
[20]
Mars Orbiter Mission: Timeline 05-11-2013:
PSLV-C25, in its twenty fifth flight, successfully

launches Mars Orbiter Mission Spacecraft from
Sriharikota07-11-2013: The first orbit raising
manoeuvre of Mars Orbiter Spacecraftsuccessfully
completed08-11-2013: The second orbit raising
manoeuvre of Mars Orbiter Spacecraftwith a burn
time of 570.6 seconds successfully completed. The
observed change in Apogee is from 28814 km to
40186 km09-11-2013: The third orbit raising
manoeuvre of Mars Orbiter Spacecraftwith a burn
time of 707 seconds successfully completed. The
observed change in Apogee is from 40186km to
71636km.11-11-2013: The fourth orbit-raising
operation conducted 16-11-2013: The fifth orbit
raising manoeuvre of Mars Orbiter Spacecraft
successfully completed.01-12-2013: Medium Gain
Antenna of the Mars Orbiter Spacecraft is powered
for long distance communication, subsequent to
successful Trans Mars Injection (TMI) manoeuvre.
Trans Mars Injection (TMI) operations completed
successfully. 11-12-2013: The first Trajectory
Correction Manoeuvre (TCM) of Spacecraft was
carried out successfully by firing the 22 Newton
Thrusters for a duration of 40.5 seconds. 09-04-2014:
Mars Orbiter Spacecraft Crosses Half Way Mark of
its Journey.16-09-2014: Time-tagged commands to
execute Mars Orbit Insertion (MOI) uploaded.17-092014: Uploading of commands for Fourth Trajectory
Correction Manoeuver and test-firing of Main Liquid
Engine.22-09-2014: Test Firing of Main Liquid
Engine of Mars Orbiter Spacecraft is successful.2409-2014: Mangalyaan enters Mars orbit.
NASAs Ship MAVEN to Study Mars

A research ship to the Red Planet sent by NASA
has entered Martian orbit. The ship has been names
to Earth, where they helped change our atmosphere

and eventually evolved into the plants and animals
(and people) we know. Maven is not designed to
research on these aspects but the information could
add to a growing list of puzzle pieces that are
emerging around the question of life on Mars. Those
puzzle pieces are coming from a series of missions
that began in the 1990s. The pace of Martian
exploration is growing quickly, and it would have
grown even faster if not for a series of unfortunate
failed missions. These missions are trying to build a
case about whether there was once life on another
planet. And they also serve as building blocks
toward putting people on Mars. There are many
missions planned to arrive at Mars in the next 5-10
years that could culminate in setting foot on an
extraterrestrial world for the first time, possibly as
early as 2023. From missions to investigate the
atmosphere to studies on the soil content all the
way to plans to send ships to the surface and come
back safely, it is a great time to study Mars.
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as Maven, short for Martian Atmosphere and

Volatile Evolution. It will study Marss atmosphere,
which is disappearing into space. The craft hopes to
show how and why the Martian atmosphere is
leaking into space and to study the solar winds that
constantly bombard the planet and, according to one
theory, may be responsible for the loss of
atmosphere. Solar wind is caused by the suns release
of plasma that contains highly energetic particles.
On planets (like Earth) with strong magnetic
properties, the solar wind is deflected. Mars doesnt
have such a strong magnetic field. Researchers are
also hoping they can get a sense of what Mars used
to be like. Scientists believe that it once had a very
thick atmosphere that kept it very warm and possibly
able to support life. As the atmosphere thinned, the
planet became colder, dryer, and less hospitable to
life.One theory of how life was seeded on Earth is
that Mars once had conditions much more suitable
for microbial life than Earth did. It is possible that
an asteroid brought some of those Martian microbes
NOZZLE TO REDUCE AERIAL NOISE
A nozzle developed by a researchers from the

Department of Aerospace Engineering, at the Indian
Institute of Science could reduce noise
significantly.The nozzle works by slowing down the
hot, high-energy aviation fuel exhaust.
Frequent flyers and air crew signifies that noise

pollution is not only a terrestrial phenomenon it can
come from air traffic too. At over 180 decibels,
aircraft engine exhaust can be an ordeal and a health
hazardfor those in proximity to the aircraft.The
design is intended to address such problems. Under
the design, in a conventional cone-shaped nozzle,
the exhaust is released with massive momentum,
carrying huge energy and creating noise. But the
new nozzle, shaped like petals, allows the exhaust
to spread and get assimilated quickly into the cold

atmosphere. In fact, the new nozzle saw a doubling
of the rate of exhaust assimilation into the ambient
air, according to the paper. The device does more
than just make airplanes quieter, it improves the
engine performance.The nozzle also has potential
applications in creating eco-friendly refrigerators, airconditioners and other devices that involve the rapid
cooling of air.
The noise from jet exhaust is one of the key
concerns of the aircraft industry. There is a
tremendous push towards design of quieter
engines.Busy airports experience very high noise
levels that can be harmful to human hearing over
long run and affects residents close to such airports.
US PRESIDENT SIGNS THE LANDMARK MEMORANDUM
The US President Barak Obama has signed a

memorandum that would lay significant impact on
the biodiversity in thousands of miles off Americas
shores. The memorandum results in the expansion
of Pacific Remote Islands Marine National
Monument. With this, an ocean preserve flush with
rare seabirds, turtles and marine mammals is
expected to grow to roughly three times the size of
California .
The expanded Pacific Remote Islands Marine
National Monument will cover 490,000 square miles,
making it the largest marine preserve in the world.
The move puts the remote waters surrounding a

collection of islands off-limits to drilling and most
fishing in a bid to protect fragile underwater life.
Millions of marine animals live in the bio-rich
expanse included by the new monument. It will also
add new protections for more than 130 seamounts,
the underwater mountains where rare or
undiscovered species are frequently found.
Commercial fishing, deep-sea mining and other
extraction of underwater resources will be banned,
but recreational fishing will still be allowed, in an
attempt to preserve the publics access to federal
[21]
areas. The move to broaden the George W. Bush-era

preserve comes as Obama seeks to show concrete
presidential action to protect the environment,
despite firm opposition in Congress to new
environmental legislation.
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At the United Nations, Obama announced new

U.S. commitments to help other nations deal with
the effects of climate change, as world leaders seek
to galvanize support for a major global climate treaty
to be finalized next year in Paris.Yet the expansion
falls far short of what Obama could have done in
the Pacific had he used the full extent of his powers.
Had Obama expanded the preserve in all five

regions, he could have protected more than 780,000
square miles, according to a geographic analysis by
the Pew Charitable Trusts. Still, environmental
groups cheered the announcement and said they
hoped it would spur other nations to take similar
steps to preserve the worlds oceans. One measure
that could help deter illegal fishing in the region, as
well as around the world, would be to implement
the Port State Measures Agreement, an international
treaty that requires member nations to prevent
illegally caught fish from entering the market. Eleven
nations or parties have ratified the agreement, but a
total of 25 must sign before the treaty will take effect.
Maritime law gives the U.S. control up to 200

nautical miles from the coast. Under Bush, the U.S.
set aside waters extending about 50 miles from the
shore of the remote, U.S.-administered islands in
the south-central Pacific, thousands of miles from
the American mainland.The islands sit between
Hawaii and American Samoa and are divided into
five regions. Obama is extending the preserve to the
full 200 miles, but only for three of the five regions.
However, the victory may be symbolic for

environmentalists, who long urged Obama to take
this step as the designation will have limited
practical implications. It is because little fishing or
drilling are taking place in the region even without
the new protections.
STUDY WARNS AGAINST GLOBAL WARMING
A revealed by a new study conducted by

researchers at the Tyndall Centre for Climate Change
Research at the University of East Anglia,global
Carbon dioxide emissions are set to reach a record
high of 40 billion tones in 2014.According to the
study there has been a 2.5 per cent projected rise in
burning fossil fuels.
The study showsa clear impact of human

influence on climate change. Substantial and
sustained reductions in CO2 emissions from burning
fossil fuels are needed to be achieved if the aim is
to limit global climate change. The commitments
necessary to stay below 2 degree Celsius of climate
change is not near. The rise of this level will be
already challenging to manage for most countries
around the world, even for rich nations.
As revealed by annual update of the Global

Carbon Budget, total future CO2 emissions cannot
exceed 1,200 billion tonnes, for a likely 66 per cent
chance of keeping average global warming under 2
degree Celsius (since pre-industrial times) and at
the current rate of CO2 emissions, this 1,200 billion
tonne CO2 quota would be used up in around 30
years. This means that there is just one generation
before the safeguards to a 2 degree Celsius limit
may be breached.
Highlights of the Study:
CO2 emissions from burning fossil fuel are
projected to rise by 2.5 per cent in 2014 - 65
per cent above 1990 levels, the reference year
[22]
for the Kyoto Protocol.
China, the USA, the EU and India are the

largest emitters - together accounting for 58
per cent of emissions.
Chinas CO2 emissions grew by 4.2 per cent
in 2013, the USAs grew by 2.9 per cent, and
Indias emissions grew by 5.1 per cent and the
EU has decreased its emissions by 1.8 per cent,
though it continues to export a third of its
emissions to China and other producers
through imported goods and services.
Chinas CO2 emissions per person overtook
emissions in the EU for the first time in 2013
and the countrys emissions are now larger
than the US and EU combined.
16 per cent of Chinas emissions are for goods
and services which are exported elsewhere,
while emissions in the UK decreased by 2.6
per cent in 2013 caused by a decline in the use
of coal and gas.
UK exports a third of its emissions by
consuming goods and services which are
produced elsewhere.
CO2 emissions are caused primarily by
burning fossil fuels, as well as by cement
production and deforestation, deforestation
accounts for 8 per cent of CO2 emissions.
Historical and future CO2 emissions must
remain below a total 3,200 billion tones to be

in with a 66 per cent chance of keeping climate
change below 2 degree Celsius. But two thirds
(2,000 billion tones) of this quota have already
been used.
If global emissions continue at their current

rate, the remaining 1,200 billion tones will be
used up in around 30 years.
Global emissions must reduce by more than 5
per cent each year over several decades to keep
climate change below 2 degree Celsius.
HAL-ISRO TO COLLABORATE ON CRYOGENICS

propulsion sub-system for spacecraft and launch
vehicle projects.
What is Cryogenic Engine?
Why Rocket Needs Cryogenic Temperature?
Cryogenics is the study of the production of

materials at extremely cold temperatures. The
temperatures studied in cryogenics are those below
-243.67 degrees Fahrenheit (120 Kelvin). Such low
temperatures do not occur in nature. A cryogenic
rocket engine is a rocket engine that uses a cryogenic
fuel or oxidizer, that is, its fuel or oxidizer (or both)
is gases liquefied and stored at very low
temperatures.
The size and mass of fuel tanks themselves

would severely decrease rocket efficiency, if
propellants had been stored as pressurized gases.
Therefore, to get the required mass flow rate, the
only option was to cool the propellants down to
cryogenic temperatures, converting them to liquid
form. Hence, all cryogenic rocket engines are also,
by definition, either liquid-propellant rocket engines
or hybrid rocket engines.
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HALs aerospace division plans to set upan

integrated cryogenic engine manufacturing facility.
The division will manufacture cryogenic/semicryogenic engines for ISRO.The will result in the
futhr strengthening of HAL-ISRO partnership in the
years to come.At present, discussions with ISRO are
already on for assembly integration and testing of
IRNSS satellites and for productionisation of
Work packages for the Chandrayan-2 and

Reusable Launch Vehicle (RLV) projects are also on
the anvil.HAL has partnered and supported ISRO
throughout its journey by providing hardware for
satellites, SLV, ASLV, PSLV, GSLVMKII and GSLV
MKIII (LVM3).
NEW CYBER BUG RAISES CONCERN
As per the warning issues by cyber experts India

is witnessing the threat of a new bug. The security
bug in a widely used piece of Linux software, known
as Bash, could pose a bigger threat to computer
users than the Heartbleed bug that surfaced in
April. Bash is the software which is used
forcontrolling the command prompt on many Unix
computers. Hackers can exploit a bug in Bash to
take complete control of a targeted system.
Alert has been issued byThe Department of
Homeland Securitys United States Computer
Emergency Readiness Team, or US-CERT, saying the
vulnerability affected Unix-based operating systems
including Linux and Apple Incs (AAPL.O) Mac OS
X. The Heartbleed bug allowed hackers to spy on
computers but not take control of them, but the new
bug is expected to take control of the targeted system
which can be more dangerous.
Experts have warned that the bug was rated a
10 for severity. It means it has maximum impact,
and rated low for complexity of exploitation which

means it is relatively easy for hackers to launch
attacks. Using this vulnerability, attackers can
potentially take over the operating system, access
confidential information and make changes. As
advised by US-CERT, computer users should obtain
operating systems updates from software makers. It
said that Linux providers including Red Hat Inc
(RHT.N) had already prepared them, but it did not
mention an update for OS X. Apple representatives
could not be reached.
A Google Inc security researcher said that the
patches seemed incomplete. That means some
systems could be exploited even though they are
patched. This expresses a wide concerns. Corporate
security teams had spent the day combing their
networks to find vulnerable machines and patch
them, and they would likely be taking other
precautions to mitigate the potential for attacks in
case the patches proved ineffective.
[23]
HEARTBLEED VS. BASH

Heartbleed
It is a bug in an open-source encryption software
called OpenSSL. The bug put the data of millions of
people at risk as OpenSSL is used in about twothirds of all websites. It also forced dozens of
technology companies to issue security patches for
hundreds of products that use OpenSSL. It allows
attackers to spy on computer.
Bash
Bash is a shell, or command prompt software,
produced by the non-profit Free Software
Foundation. It is a dangerous bug as it can take the
complete control of targeted system.
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RESEARCHERS CLAIMS WATER AS OLDER THAN SUN
A pioneering research has said that, significant

fraction of our solar systems water is older than
than the sun. It indicates that abundant, organicrich interstellar ices should probably be found in all
young planetary systems.The team further found that
our solar systems water is likely originated as ices
that formed in interstellar space.
The importance of the research lies in the fact

that if water in the early solar system was primarily
inherited as ice from interstellar space, then it is
likely that similar ices, along with the prebiotic
organic matter that they contain, are abundant in
most or all proto-planetary disks around forming
stars. But if the early solar systems water was largely
the result of local chemical processing during the
suns birth, then it is possible that the abundance of
water varies considerably in forming planetary
systems. This would obviously have implications for
the potential for the emergence of life elsewhere.
In studying the history of our solar systems ices,
lead researcher from University of Michigan focused
on hydrogen and its heavier isotope deuterium.The
ratio of hydrogen to deuterium in water molecules
can tell scientists about the conditions under which

the molecules formed.The team created models that
simulated a proto-planetary disk in which all the
deuterium from space ice has already been
eliminated by chemical processing.
The system has to start over from scratch at
producing ice with deuterium in it during a millionyear period.The team did this in order to see if the
system can reach the ratios of deuterium to hydrogen
that are found in meteorite samples, Earths ocean
water and time capsule comets.They found that it
could not do so. This told them that at least some of
the water in our own solar system has an origin in
interstellar space and pre dates the birth of the sun.
The Sun was surrounded by a protoplanetary
disk, the so-called solar nebula,in its youth. Planets
were born from this nebula.Till date, it was unclear
to researchers whether the ice in this disk originated
from the suns own parental interstellar molecular
cloud or whether this interstellar water was
destroyed and reformed by the chemical reactions
taking place in the solar nebula.
SPACEX ARRIVES SAFELY AT ISS
Two days after it blasts off from Cape Canaveral,

SpaceXs Dragon cargo ship safely reached the
International Space Station. The Dragon and its
nearly 5,000 pounds of cargo was caught by the
astronauts by steering a 58-foot robotic arm.NASA
astronaut Reid Wiseman supported Gerst during the
grapple operation. They will proceed to attach the
Dragon to a docking port before opening its hatch
and beginning to unload cargo.
The cargo consists of rodent habitats holding 20

mice, the first 3-D printer in space, food and
spacesuit batteries. The spacecrafts unpressurized

trunk holds a radar instrument that will measure
ocean surface winds to improve weather and climate
forecasts, which will be installed robotically.The
Dragon is expected to remain berthed at the outpost
for a month before returning to Earth with 3,300
pounds of cargo. It is the only spacecraft flying today
that is capable of returning large amounts of cargo
to the ground.This is the fourth of 12 planned Dragon
flights under a $1.6 billion NASA resupply contract.
OCEAN WARMING CAN AFFECT SW MONSOON

of
[24]
The evidence of major anomalies in the warming

the Indian Oceanhas been found by
theResearchers. This has the potential to alter the

strength of the southwest monsoon. Marine foodWeekly Current Affairs 22nd Sept. to 28th Sept., 2014
webs which are over among the most biologically

productive regions may also get adversely impacted.
After analyzing the aforesaid causes, the research

said the warming trend over the Indian Ocean is
highly dependent on what happens in the equatorial
Pacific.The El Nino induces anomalous warming
over the western Indian Oceanbut its alter ego La
Nina fails to do the inverse.A second, prominent
reason is that the frequency of El Nino events has
increased in recent decades.
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The evidence was given by the paper The

curious case of Indian Ocean warming, which is
scheduled to appear in the Journal of Climate,
published by the American Meteorological
Society.The results of the study challenge the current
understanding of Indian Ocean warming and climate
change. Being the warmest among the major oceans,
the Indian Ocean plays a critical role in regulating
the monsoon as well as the dynamics over the
tropics.During summer, the central-east Indian
Ocean hosts a warm pool of waters with sea surface
temperatures (SSTs) greater than 28 deg Celsius. This
makes it highly conducive for enhanced convection,
which involves the process of building rain-bearing
clouds.
The warming of the generally cool western

Indian Ocean against the warm pool region (in the
east) weakens the SST gradients.This has the
potential to change the monsoon circulation and
rainfall, as well as alter the marine food webs in this
biologically productive region.This is because
warming causes the air over the ocean to expand
and lower the atmospheric pressure. It unsettles the
wind pattern which, in turn, decides the monsoon
flows.
A substantial warming over this warm pool have

been pointed out by the studies on trends during
the past half century, though the reasons have
remained ambiguous.But an analysis of the warming
during 1901-2012 has revealed a different picture of
Indian Ocean warming. The focus now shifts to the
relatively cool western Indian Ocean. Western
tropical Indian Ocean has been warming for more
than a century at a rate faster than any other region
of the tropical oceans, and has attained the warm
pool SST values of 28 deg Celsius.While the warm
pool (in the east) went through a warming of 0.7
deg Celsius, the western basin experienced an
anomalous increase of 1.2 deg Celsius in summer.
The Pacific Ocean appears to throws out its heat,

which partially gets accumulated in the Indian
Ocean, in an El Nino. Post-1950, a few warm events
over the Indian Ocean have attained the threshold
value for El Nino. This places these warm events
almost on a par with the El Nino in magnitude.
In this manner, the Indian Ocean warming turns
out to be the largest contributor in phase, with the
overall trend in the global SST. The warming
scenario and related climate dynamics are factors to
be vigilant of, while assessing climate change and
variability over the long terms.
[25]
HEALTH
BREATH TEST FOR MDR-TB
The new technique has so far been tested on a
small group of rabbits and clinical trials are needed
to see if it is safe and accurate in humans, in which
case it could be packaged as a portable diagnostic
kit. The prototype will need refinement or be
combined with other diagnostics to give physicians
a broader view of a patients TB status.If it gives a
negative result, this means that either a person does
not have TB or has an isoniazid-resistant strain.
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Scientists are planning to introduce a simple

breath test that may show whether someone has a
strain of tuberculosis that will respond to a frontline
antibiotic, or a drug-resistant type. Building on
previous work for a fast-track breath test, their new
prototype technique looks for traces of nitrogen gas
emitted by the disease-causing germ Mycobacterium
tuberculosis.
The test is based on the fact that strains of the

microbe which respond to the drug isoniazid have
an enzyme called KatG that reacts to the antibiotic
by releasing nitrogen.The test entails administering
a small amount of isoniazid, waiting for five to 10
minutes and then taking a breath sample, which is
chemically analysed by a mass spectrometer. A
positive result, showing the presence of nitrogen,
indicates the person has a TB infection that can be
safely tackled with isoniazid, one of two frontline
tuberculosis treatments.
According to U.N.s World Health Organisation

report, TB claimed 1.3 million lives worldwide last
year, making it the deadliest disease after AIDS to
be caused by a single infectious agent. Conventional
sputum lab testing for TB bacteria can take up to six
weeks, which is why the search is on for faster, onthe-spot diagnostics.Multi-drug resistant versions of
the virus, often deadly, have to be treated with more
expensive, alternative medicines that take longer to
work and can have strong side-effects.
CABINET CLEARS SWATCHH BHARAT MISSION
The Union Cabinet cleared the Swachh Bharat

Mission for Urban Areas. The programme will be
implemented over a five-year period in 4,401 towns.
It is scheduled to be launched on Gandhi Jayanti. It
is an effective initiative to promote cleanliness and
sanitation in urban areas.
The main aim of the programme is the
elimination of open defecation, conversion of
unsanitary toilets to pour flush toilets, eradication
of manual scavenging, municipal solid waste
management and bringing about a behavioural
change in people regarding healthy sanitation
practices. The programme has been allocated with
the sum of Rs 62,009 crore. Out of this amount, the
Centre will pitch in Rs 14,623 crore. AS a further
development, the Cabinet has also approved the
restructuring of the Nirmal Bharat Abhiyan into the
Swachh Bharat Mission (Gramin).
[26]
Highlights of the Mission:
The mission will also aim at generating

awareness among citizens.
The mission aims to cover 1.04 crore
households, provide 2.5 lakh community
toilets, 2.6 lakh public toilets, and a solid waste
management facility in each town.
Under the programme, community toilets will
be built in residential areas where it is difficult
to construct individual household toilets.
Public toilets will also be constructed in
designated locations such as tourist places,
markets, bus stations, railway stations, etc.
Of the Centres share of Rs 14,623 crore, Rs
7,366 crore will be spent on solid waste
management, Rs 4,165 crore on individual
household toilets, Rs 1,828 crore on public
awareness and Rs 655 crore on community
toilets.
GOVERNMENT TO STUDY SPURIOUS DRUGS

picked up from across the country. The prevalence
of spurious products was found to be about 0.04 per
cent. The Indian drug regulatory representativeadded
that local authorities were also keeping an eye on
local pharmaceutical products and their quality has
been improving over the years.Various numbers are
discussed when it comes to the prevalence of spurious
drugs in India, including numbers attributed to the
World Health Organisation.
Once the basic framework in place, the study

will be rolled out in terms of actually picking up
samples from across the country and analyse them
before coming out with a final report. Former Drug
Controller-General of India, Surinder Singh, who is
now Director of the National Institute of Biologicals,
heads this committee that is studying the prevalence
of spurious drugs. Under the study to be
conducted,about 15 categories of medicines, such as
anti-malarials and antibiotics, have been identified
to be surveyed.
Meanwhile, the number of Adverse Drug

Reaction (ADR) centres is also being expanded by
the government in the country to record incidents
of reactions related to medicines. From about 150
now, it would go up to over 380 by 2015.
Additionally, all Government medical colleges
would have an ADR centre. This expansion comes
even as the Government doubles its drug regulatory
personnel from about 1,500 at present.The drug
regulator is already collaborating with foreign
regulators during inspections of local drug plants
on the steps being taken by India to harmonise its
drug regulations with international laws.
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With the issue of quality of Indian

medicinesbeingquestionedby overseas regulators,
Governments study on spurious drugs in the country
is set to gain momentum. A basic framework regarding
this has been framed by The Central Drugs Standard
Control Organisation (CDSCO) in consultation with
the Indian Statistical Institute and other partners,
including the State drug controllers. It also includes
details on the category or medicines to be covered.
A similar study on spurious drugs was

conducted in 2009, where 24,000 samples were
[27]
NEWS IN BRIEF
NEWSMAKERS
Michael Kirby
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Mr. Michael Kirby was appointed, by the

Supreme Court, as the third arbitrator who will
preside over a three-member arbitral panel which
would adjudicate the cost recovery row between the
Indian government and RIL on the KG-D6 block.
He is a former judge of the Australian High Court.
arbitrator,Reliance Industries Limited (RIL) had

moved the Supreme Court. Two such earlier
attempts by the top court to appoint the third
arbitrator had come to naught after the government
did not agree to the names appointed by the court.
He will head a panel which comprises two

former chief justices of India; SP Bharucha,
nominated by RIL and VN Khare, who has been
named by the government.
Mr. Kirby has been picked from a panel of

internationally accepted arbitrators submitted by RIL
after the government left it to the courts
discretion.The only condition was that he should be
a former judge and not a lawyer. The panel has to
decide whether or not commitment made on gas
production targets by the RIl-led consortium to the
government were binding and whether the
government could prevent the consortium from
recovering costs if the commitments were not met.
Requesting the appointment of a third arbitrator
after Bharucha and Khare could not agree to a third
Another Australian judge James Spigelmanhas

been appointed by the court after, ruling that the
third arbitrator would have to be from a neutral
nationality, and not Indian as the Indian government
was insisting. The government then protested that
Spigelman figured on the top of a list of preferred
arbitrators submitted by RIL to the court. This led
the court to recall its decision. The second attempt
to appoint an arbitrator came apart when the
government trained its guns on Michael Hudson
McHugh for initially refusing and then accepting
assignment ostensibly at RILs request without
keeping the government in the loop. RIL had then
in a plea, filed through law firm M/S Parekh & Co,
RIL accused the government of provoking the
chairman not to accept the appointment and
submitted that the conduct of the government was
in brazen violation of the spirit of an arbitration.
OBITUARIES
Anandji Dossa
Anandji Dossa is regarded as the grand old man

of Indian cricket statistics. He recently passed away
at the age of 98 in the United States. Along with his
wife he had moved to US in 1998. He could not
adapt to American life and returned to Mumbai.
However, two of his daughters settled in US. Since
there was no one to look after them in Mumbai, two
years ago, he went to the US again with his wife.
Dossas association with cricket touched many

facets of the game.He achieved international fame
as a statistician. He also was a noted scorer for All
India Radio along with Vijay Merchant as the
commentator. Dossa carried the pioneering work of
statistics done by P.N.Polishwala, S.K. Gurunathan
and S.K. Roy. He formed the Statistical Committee
along with P. Sundaresan in the 30s for the BCCI
[28]
and produced the BCCI Statistical Annuals. He was

the chairman of the committee from 1933-34 to 1980.
He played for Hindu Gymkhana, Bombay
Cricketers, Fort Vijay Cricket Club till 1962. He
founded Jolly Cricketers. A wicketkeeper, he
narrowly missed a match at first-class level after
being among the reserves for the Hindus in the
Pentangulars in 1941 and for Bombay in the Ranji
Trophy in 1941-42 and in 1947-48. He was among
the reserves for Indias tour of Pakistan in 1954-55
and lost his place to Madhav Mantri. He was in the
Mumbai Cricket Associations managing committee
from 1949 to 1953. He was the automatic choice as
its president and held the post till 1994-95, when
the Association of Cricket Statisticians and Scorers
was formed in 1987.
He guided the association and took it to great
heights, encouraging the scorers and statisticians in
the country. The ACSSI finally named a trophy for

the Best Scorer in Mumbai after Anandji Dossa. He
was a collector of Indian cricket literature and built
one of the best collections of books. The CCI named
the library after him, calling it the AnandjiDossa
Reference Library.
He was the Statistical Editor of Dicky Rutnagar

Indian Cricket Field which ran from 1957-58 to 196465. The title of grand old man of Indian cricket
statistics accorded to Dossa was really true.
AWARD
Alternative Nobel Award for Snowden
Dr. SouvikMaiti Institute of Genomics and

Integrative Biology (CSIR-IGIB) New Delhi.
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Edward Snowden, the former U.S. spy agency

contractor, has been awarded Swedens Right
Livelihood Honorary Award for his courage and skill
in revealing the unprecedented extent of state
surveillance violating basic democratic processes and
constitutional rights. He shares the award with Alan
Rusbridger, editor-in-chief of the British newspaper
The Guardian, with whom he collaborated to publish
his revelations on the U.S. National Security Agency
(NSA). Snowden, presently, lives in Russia where
he has a three-year residence permit. He is wanted
by the United States for leaking extensive secrets of
its electronic surveillance programmes.
Chemical Sciences Dr. Kavirayani Ramakrishna

Prasad Indian Institute of Science Bengaluru.
The Award Foundation also vowed to fund legal

support for Snowden.Snowden fled to Hong Kong
and then Moscow last year. He is believed to have
taken 1.7 million computerised documents. Those
published so far revealed massive programmes run
by the NSA that gathered information on emails,
phone calls and Internet use by hundreds of millions
of Americans.Snowden was charged in the United
States with theft of government property,
unauthorised communication of national defence
information and wilful communication of classified
intelligence to an unauthorised person.
The award, popularly referred to as the
Alternative Nobel Prize was established in 1980 to
honour and support those offering practical and
exemplary answers to the most urgent challenges
the humanity isfacing today.
CSIR Announces SSB Award for 10 Scientists
Council for Scientific & Industrial Research

(CSIR) have selected ten scientists from across
premier Indian research institutions for the countrys
prestigious Shanti SwarupBhatnagar award for the
year 2014.
The award was announced by P S Ahuja, director

general of the Council for Scientific & Industrial
Research (CSIR) during the CSIRs 72st foundation
day celebrations.
The awardees are as under:
Biological Sciences Dr. RoopMallik Tata
Institute of Fundamental Research Mumbai
Earth, Atmosphere, Ocean and Planetary

Sciences Dr. SachchidaNandTripathi Indian
Institute of Technology Kanpur.
Engineering Sciences Dr. S Venkata Mohan
Indian Institute of Chemical Technology
(CSIR-IICT) Hyderabad.
Dr. SoumenChakrabarti Indian Institute of
Technology Mumbai.
Mathematical Sciences Dr. Kaushal Kumar
Verma Indian Institute of Science Bengaluru.
Medical Sciences Dr. AnuragAgrawal Institute
of Genomics and Integrative Biology (CSIRIGIB) New Delhi.
Physical Sciences Dr. PratapRaychaudhuri Tata
Institute of Fundamental Research Mumbai.
Dr. Sadiqali Abbas Rangwala Raman Research
Institute Bengaluru.
Shanti SwarupBhatnagar Award
Shanti SwarupBhatnagar award (SSB) is an annual

award which is conferred to selected scientists for
their outstanding works in the field of science and
technology. It consists of a cash prize of Rs 5 lakh, a
citation and a plaque. The award is named after the
founder of Council of Scientific and Industrial
Research (CSIR). It is announced on the occasion of
the foundation day ceremony of the council.
Any citizen of India engaged in research in any
field of science and technology up to the age of 45
years as reckoned on 31st December of the preceding
year of the Prize, is eligible for the prize. Overseas
citizen of India (OCI) and Persons of Indian Origin
(PIO) working in India are also eligible.
SSB Prizes are awarded for notable and
outstanding research, applied or fundamental, in the
following disciplines:
Biological
Chemical
Earth, Atmosphere, Ocean and Planetary

Engineering
Mathematical
Medical
Physical Sciences.
[29]
Arjuna Award for Boxer Manoj

The name of boxer Manoj Kumar as the recipient
of this years Arjuna award has been confirmed by
the Union Sports Ministry. In a letter the Ministry
has said that Sports Minister Sarbananda Sonowal
will give away the award to Manoj at a later date.
After the Sports Authority of India (SAI) erroneously
informed the panel that the boxer had failed a dope
test, the Arjuna award selection committee did not

consider Manoj for the award. The panel stuck to its
choices even after it became clear that Manoj had
never tested positive. An aggrieved Manoj moved
the Delhi High Court, where the government
admitted that the pugilist also deserved to get the
honour. After reconsidering the case, the Ministry
decided in giving the award to Manoj.
COMMITTEE/COMMISSION
bringing water in the Concurrent list of Constitution
and had received support from a Parliamentary
panel.
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Panel to aid Mission Clean Ganga
The Centre has constituted a committee to

recommend technologies to cut down on pollution
in Ganga. The need of the panel arouse due to the
cremations on the ghats of Ganga in cities like
Varanasi and Haridwar adding to the impurities of
the river.The idea has been supported by the sadhus
and saints. They have assured her that they will
accept any technology which the government deems
fit to reduce pollution. Several Hindus prefer to get
cremated on the banks of river Ganga on ghats of
Varanasi and Haridwar for salvation. Most of the
cremation grounds are close to banks of river Ganga.
The technical committee comprises Director,
National Environmental Engineering Research
Institute, Secretary Central Pollution Control Board
and a senior professor of IIT-Kanpur. The committee
will look into various types of technologies to ensure
that rivers are not polluted. This is among one of
the several short-term measures to reduce river
pollution. Government is also concerned with the
puja samagri immersed in rivers as it is a major
factor contributing to its clogging.
Government has decided that polluted water
treated of its impurities will not be channelled back
to rivers. It can be diverted, used for irrigation and
other purposes. As part of the initiatives to
rejuvenate Ganga, plans are afoot to carry out
afforestation on the banks of the river. There is also
a proposal to conserve medicinal plants in the upper
reaches of the river.
On inter-linking of rivers, steps will be taken
keeping in mind environmental laws, sentiments of
the states involved and international protocols.
Renewed thrust to inter-linking of rivers has been
made. However, with water being a state subject,
Centre often finds it difficult to to have a say in
river interlinking projects and inter-state water
sharing disputes. Such disputes are referred to a
tribunal and take years to reach a resolution.Against
this backdrop, UPA government had supported
[30]
The Ken-Betwa link project between Madhya

Pradesh and Uttar Pradesh would be the first
interstate river linking project to be completed. As
the project would mean submergence of several
hectares of land of the Panna Tiger Reserve, the
Madhya Pradesh government has agreed to
compensate the land so that the territory of the tigers
is not compromised.
Expert Panel to Restructure Railway Board
The government has set up a seven-member

committee, headed by economist BibekDebroy to
facilitate the restructuring of the Railway Board.
Railway Board is the highest decision-making body
of Indian Railways. The other members comprise
former cabinet secretary KM Chandrashekhar,
former CMD of Proctor and Gamble Gurcharan Das,
senior fellow of Centre for Policy Research
ParthaMukhopadhyay, former MD of National Stock
Exchange Ravi Narain, and former financial
commissioner of Railway Board RajendraKashyap.
Besides, the board will also contain a nominee from
the Department of Economic Affairs.
Restructuring the board will mean promoting
exchange of officers between railways and other
ministries. The panel was set up in the backdrop of
admission of the fact by the Railway Minister in the
Rail Budget that the present set of the Board had
become unwieldy due to overlapping roles of policy
formulation and implementation. Hence the idea is
to separate these two functions. There is also a need
to overhaul the organisation. RanjedraKashyap is
the only person in the panel who belongs to Indian
Railway. The tenure of the committee could be one
year.
Terms of Reference:
Terms of Reference of the panel include:
Restructuring of Railway Board
Discuss the ways to separate policy making

and implementation in the Railway Board so
that it does not work in silos.
Estimation of the financial requirement of the
railways and suggest ways to generate
resources.
Examine the ways to set up a Rail Tariff
Authority.
Arvind Mayaram Panel
The eighth meeting of the Safta ministerial

council in Thimphu in July approved the proposal
made by the committee of experts. Indias trade
minister NirmalaSitharaman skipped the event citing
a busy schedule in Parliament. Saarc Development
Bank will focus on building infrastructure in Indias
neighbourhood.
The Saarc Development Bank is being mooted at
a time when the BRICS New Development Bank
(NDB) is taking shape and China has proposed an
Asian Infrastructure Investment Bank. At the sixth
BRICS summit, held in Fortaleza, Brazil, in July,
leaders of emerging economies Brazil, Russia, India,
China and South Africa agreed to mobilize their
resources for infrastructure and sustainable
development projects in BRICS and other emerging
and developing economies through the new bank.
Each of the five members will contribute $10 billion
to create a capital base of $50 billion for the NDB.
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With an aim to examine a proposal to establish

a development bank for South Asian countries,the
government has set up a committee under the
chairmanship of finance secretary ArvindMayaram.
The idea to create a Saarc (South Asian Association
for Regional Cooperation) Development Bank was
unanimously endorsed by commerce ministers of
the regional groupings eight countries at a
ministerial meeting in Thimphu in July.
except India, Pakistan and Sri Lanka are considered

LDCs.
The members of Saarc are Afghanistan,

Bangladesh, Bhutan, India, Maldives, Nepal,
Pakistan and Sri lanka. The grouping established a
South Asian Free Trade Area (Safta) in 2006 with
the aim of forming an economic union.
A Saarc committee of experts comprising the

commerce secretaries of the eight member countries
had earlier recommended the formation of a Saarc
Development bank to the Safta ministerial council.
The argument was that such a bank would help to
meet the infrastructure funding gap in the regions
least developed countries (LDCs) and save them
from high borrowing costs. All member nations
The Saarc bank can also do consortium lending

with other multilateral banks. If there is a big project
which requires huge investment, the Saarc
Development Bank can be the lead bank and it can
rope in, say, the BRICS New Development Bank as
a partner to fund part of the project. That kind of
synergy can happen. ASaarc Development Bank will
be important given the diverse development
imperatives of South Asia including building Saarc
connectivity between Saarc nations and raising funds
for social needs.
CULTURE & HERITAGE
Bagoreki Haveli
Bagoreki Haveli serves as a treasure trove of art

and history.Of particular interest is a huge collection
of string puppets tastefully displayed in a huge hall,
a perfect setting for fun selfies.PutliSansar has a
string puppet royal court with the kings occupying
the throne while ministers and dancing girls wait in
attendance. Camels, elephants and horses add to the
grandeur.It is collection of puppets made by artists
at a workshop in 2009. The collections have been
put on display to encourage this art by the West
Zone Cultural Centre, which maintains the Haveli.
The idea is to preserve these dying arts and crafts.
A puppet can take four or five days to create

and can cost between Rs. 400 to Rs. 500 depending
on the costumes and the quality of material used.
Buyers only trickle in these days, some foreigners
and a few Indians.The faces of the puppets

sometimes resemble real people or famous
personalities. Beautifully restored, this 18th century
palace overlooks the famous Lake Palace.
Built in 1751, by the then Prime Minister of
MewarAmachandBadwa, it was used as a
government guest house for several decades. It was
handed over to the West Zone Cultural Centre
(under the Ministry of Culture) in 1986 in a
dilapidated condition, but was slowly and carefully
restored to its original glory, by the efforts made by
culture centre.
Bamiyan Selected as SAARC cultural capital for

2015
The Afghan town Bamiyan has been selected to
be the SAARC cultural capital for a year beginning
[31]
April 2015. Dhaka will be the SAARC cultural capital

in 2016-17.Bamiyan was the city where the Taliban
blew up two ancient statues of the Buddha in
2001.This was decided at the SAARC Culture
Ministers Conference which concluded in New
Delhi.
Promoting traditions unique to the region, digital

mapping of historic sites in member countries,
preparing inventories of cultural assets, preservation
of folklore and other oral traditions besides a
common entrance rate to monuments in the region
for people from SAARC countries includes other
areas of cooperation.
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Finalising the cultural capitals for the next two

years was part of the Delhi Resolution which was
adopted at the conference while preparing a road
map on cultural ties till 2017. The year 2016-17 will
also be declared the SAARC Year of Cultural
Heritage.The SAARC countries also agreed to
formulate proposals for transnational nominations
for the World Heritage List and a regional list of
heritage sites.
Resolution agrees to recognise the impact and

contribution of maritime routes and the monsoon as
also other inland relations through centuries of trade,
migration and colonialism.In a measure aimed at
promoting literature produced in local languages of
the region, the Ministers decided to make them
accessible to readers across the world through
translations in not just English but SAARC
languages.
Indias Project Mausam got a fillip as the Delhi
TERMINOLOGIES
The Great Pacific Garbage Patch
The Great Pacific Garbage Patch, also known as

the Pacific trash vortex is a collection of marine
debris in the North Pacific Ocean. The litter that
ends up in oceans, seas, and other large bodies of
water are known as Marine debris. The patch spans
waters from the West Coast of North America to
Japan. The patch is actually comprised of the Eastern
Garbage Patch, located near Japan, and the Western
Garbage Patch, located between the U.S. states of
Hawaii and California.These areas of spinning debris
are linked together by the North Pacific Subtropical
Convergence Zone, located a few hundred
kilometers north of Hawaii. This convergence zone
is where warm water from the South Pacific meets
up with cooler water from the Arctic. The zone acts
like ahighway that moves debris from one patch to
another. The entire Great Pacific Garbage Patch is
bounded by the North Pacific Subtropical Gyre. The
amount of debris in the Great Pacific Garbage Patch
accumulates because much of it is not
biodegradable.
Ocean Gyre
A system of circular ocean currents formed by

the Earths windpatterns and the forces created by
the rotation of theplanet is known as an ocean
gyre.The interaction of the California, North
Equatorial, Kuroshiro, and North Pacific currents
creates the North Pacific Subtropical Gyre. These
four currents move in a clockwise direction around
an area of 20 million square kilometers. The area in
the center of a gyre tends to be very calm andstable.
The circular motion of the gyre draws debris into
[32]
this stable center, where it becomes trapped. Gyres

circle huge areas found in the middle of the ocean.
The force of the Earths wind patterns creates ocean
surface currents. The Coriolis Effect also has an
influence on ocean currents. The Coriolis Effect is a
force created by the rotation of the Earth. The force
deflects the direction of the ocean current at a 45degree angle. This deflection pushes the ocean
currents into a clockwise motion in the Northern
Hemisphere. In the Southern Hemisphere, the ocean
currents are pushed into a counterclockwise motion.
Diesel decontrol
Diesel decontrol is an issue which has been long

demanded by the oil companies. Decontrol signifies,
the switching from government-dictated diesel rates
to market-based pricing. If this happens, diesel will
be follow in the footsteps of petrol.
Impact of Diesel Decontrol: It will give oil
marketing companies (OMCs), Indian Oil, HPCL and
BPCL, the freedom to fix prices of diesel based on
their own cost and profit calculations. The
Government, for a long time, has been forcing the
OMCs to sell diesel, domestic LPG and kerosene at
below their notional costs. This is intended to reduce
burden on common man. So under-recoveries
incurred by the OMCs have been corroding their
finances. It also impacts the finances of upstream oil
companies (ONGC and Oil India) and GAIL, and
the Government, which compensates oil
marketers.The losses on diesel accounted for nearly
60 per cent of oil company under-recoveries in 2013
and things came to a pass when total underrecoveries shot up to about 160,000 crore. Crude oil
prices have been falling in recent months and the

rupee is stable, therefore the diesel under-recoveries
have been neutralised. In fact, the OMCs are now
making 35 paise more on a litre of diesel than
intended. Thats why this seems to be an opportune
time to free diesel from controlled pricing.
Antyodaya Diwas
The government has decided to observe
September 25 as AntyodayaDiwas every year to
mark the birth anniversary of erstwhile Bharatiya
Jana Sangh and BJP icon Pandit Deendayal
Upadhyaya. Pandit Deendayal Upadhyaya was one
of the great thinker and philosopher of the nationalist
movement of the country. Antyodaya means
uplifting the poorest of the poor. Reaching the person
in the last mile, that is the message of this
Antyodaya. In a similar instance, paying tribute to
the BJP icon, the government also decided to launch
a scheme called DAY, Deendayal Antyodaya Yojana.
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Significance of Controlled and Decontrolled

Price of Diesel: Diesel prices need a special
treatment. Unlike petrol, which was decontrolled in
2006, diesel has a variety of uses including in
commercial transport and agriculture. Any tweak
on diesel affects the costs of ferrying goods
throughout the country and has a trickle-down effect
on inflation.On the other hand a decontrolled price
of diesel will remove uncertainty about pricing and
improve the finances of the oil companies and the
Government. It will encourage responsible
consumption of the fuel and cut down on
undeserved subsidy.
prices may witness a rise if price of crude oil rises

or the rupee slips. This means more unpredictability
in pricing. Free pricing of diesel would also affect
the choice vehicles, especially four wheelers. With
the gap between diesel and petrol prices narrowing,
the cost savings on diesel cars are reducing. This
means less pollution.
Impact on Common Man: A consumer may pay

less for the fuel in the immediate future but the
MISCELLANEOUS
Remembering KamagataMaru
The famous incident related to KamagataMaru

, during british era, completed its 100 years on
September 27. Exactly 100 years in1914, a bunch of
weary Indians reached Calcutta on a Japanese
steamship, KomagataMaru. They had been forcibly
turned away from the shores of Vancouver by the
Canadian government after a long, bitter stand-off.
At Budge Budge, Calcutta, they were fired at by the
police. About 18 of them were and 202 were arrested,
some managed to escape also. The bloody climax of
one of the most fascinating episodes in the Indian
national movement continues to inspire research
papers, documentaries, exhibitions and poetry even
today.
The episode became a symbol of the worst in
racist colonial oppression. It also depicted the
indomitable spirit of resistance possessed by poor
Indian migrants. Experts says thatthe lesson learnt
from the incident was that if you are not free at
home, you are not free anywhere. That being a
citizen of the British empire meant nothing.
Therefore, fight for India to be free.
The book, Indias struggle for independence, by
Bipan Chandra and four other historians, maps the
absorbing story of KomagataMaru from March 1914
when 376 Indians living in various places in East
and South-East Asia set out for Canada. The motley
crew was led by Gurdit Singh, an Indian contractor
in Singapore, who chartered the ship.The journey

took on a patriotic streak when Ghadar Party
activists revolutionary Indians based abroad,
visited the ship in Yokohama, Japan, gave lectures
and distributed papers. Canada had for some years
imposed very strict restrictions on Indian
immigration by means of a law that forbade entry
to all, except those who had made a continuous
journey from India.
In November 1913, the Canada Supreme Court
had allowed entry to 35 Indians who had not made
a continuous journey. But by the time the ship
arrived, the government had plugged the loopholes
that had resulted in the earlier judgment.
KomagataMaru was not allowed into the port and
was cordoned off by the police. To fight for the rights
of the passengers, a Shore Committee was set up,
funds were raised, and protest meetings were
organized. Rebellion against the British in India was
threatened.
After an acrid two-month face-off,
KomagataMaru was muscled out of Canadas shores.
Before it reached Yokohoma, World War I broke
out, and the British government passed orders that
no passenger be allowed to disembark on the way,
not even at places from where they had joined the
ship, but only at Calcutta.
On landing, the harassed and irate passengers,
provoked by the hostile attitude of the authorities,
[33]
directed the movie.The movie is basedon the distress

migration,set along the Himachal-Tibet border.
Liars Dice has been on a roll on the international
festival circuit, besides winning two national awards,
for best actress for GeethanjaliThapa (who played
the protagonist, Kamala), and best cinematographer
for Rajeev Ravi (Geetus husband).Liars Dice was
the unanimous choice of the 12-member selection
committee, headed by Malayalam filmmaker T.
Hariharan.
The film had to compete with 29 other films,
including the Tamil movie Kochadaiyaan and the
Hindi films Mardaani, Shahid, Filmistaan, Queen
and Mary Kom. At the Oscars, it will compete with
Polands Ida, Swedens Force Majeure and Canadas
Mommy. Mommy won the Jury Prize at Cannes this
year and Ida has bagged prizes at the London and
Toronto film festivals last year. Liars Dice is first
Hindi film of Geetu and her second directorial
venture. She is currently working on a Malayalam
film. No Indian film has won the Academy Award
so far and only three films Lagaan, Salaam
Bombay and Mother India have made it to the
top five finalists in past years.
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resisted the police. This led to a clash, followed by

the firing. Historians also say that the incident
transformed the image of Punjab. Till the beginning
of the 20th century, Bengal was generally seen as
the centre of sedition and anti-British politics. Punjab,
by contrast, carried the image of a region inclined
towards the British. This image was inspired largely
by 1857 and the supposed role of Punjab army in
suppressing it. The Ghadar movement and the
KomagataMaru incident changed all that. A few
years later the JallianwallaBagh firing cemented the
image of Punjab as a rebellious nationalist heartland.
The KomagataMaru episode also influenced the

course of the Ghadar movement, one of the most
heroic and unique battles in Indias struggle for
freedom.
India Nominates Liars Dice for Oscar
India nominated Hindi road drama Liars Dice

for the Best Foreign Film in 87thAcademy Awards,
better known as the Oscars. The award will be given
away in Los Angeles in 2015.Kerala State awardwinner Geetu Mohandas, stars national award
winners GeetanjaliThapa and NawazuddinSiddiqui
SPORTS
Life Time Achievement Award for Kapil Dev
At a ceremony organized in the House of Lords,

Indian cricket legend Kapil Dev has been honoured
with a Lifetime Achievement award. The award is
constituted by the Indo-European Business Forum
(IBEF). It was presented to the former India World
Cup-winning captain for his contribution to the sport
and for his work in the field of upliftment of poor
and destitute communities through the Khushii
society.
Kapil Dev expressed his happiness on receiving

the award and felt prideon being an Indian. He said
that India has achieved a significant amount of
development andat present, India is ready to do
business with anybody in the world.
He further said that he used to hate England
because they ruled his country but at the same time
he is happy that they gave Indian, the game of
cricket.
Arguably the greatest pacer bowler and allrounder India has produced, Dev led the country
to its maiden World Cup triumph in 1983, beating
the then formidable West Indies in the title clash at
Lords. With the 55-year-old Dev held the record
for most number of wickets in Tests for some years
[34]
before being eclipsed by former West Indies captain

Courtney Walsh in 2000.
Sejwal Wins Medal in Swimming
25-year-old Sandeep Sejwal, from Delhi, became

only the ninth Indian to win a medal at Asian Games
swimming. Only a third, if the under-represented in
the first edition in 1951 is not counted. Even though
a bronze, Sejwals swim in 28.26 seconds to make a
surprise podium appearance in the 50m breaststroke
will remain a high point in Indias medal haul in
Incheon Asian Games.
Before 2010, India had not won a single
swimming medal at the Asian Games for 24 years.
Now, they have two in the last two. Virdhawal
Khade ended the long draught by winning the 50m
butterfly bronze four years ago in Guangzhou and
now Sejwal. For the first 40m, Sejwal even led the
young field that boasted of several quick swimmers.
However, he lost balance in the last three strokes,
and the slight hiccup cost him a medal of better
colour. Sejwal was 0.48 behind gold medallist
Dmitriy Balandin of Kazakhstan, who set the Games
Record with a timing of 27.78.
When he took his position on the edge of the
pool, Sejwal said that he had trained very hard to
win a medal at the Games. He told himself before

the race notto waste the previous eight years of life.
His positive attitude has contributed a lot in his
victory.
A Productive Day for India at Incheon
Thi Hien as she pinned down her opponent

in just 55 seconds in a victory by fall verdict.
Lalita bagged a bronze in womens 3000m
steeplechase with a personal best timing of
9:35.37 while defending champion Sudha
Singh finished fourth.
The womens trio had set the tone in the
morning by clinching the compound team
bronze by defeating Iran in the play-off for
the third position at the Gyeyang Asiad
Archery Field. Later, Trisha bagged a bronze
in the individual event.
While the archers and squash players stole the

limelight with their medal-winning heroics, the
Indian boxers also moved to the quarterfinals with
easy victories over their opponents. The mens
hockey team also kept their medal hopes alive by
advancing to the semifinals with a scrappy 2-0 win
over China in their last pool B match.
India had won one silver and three bronze

medals from the bow and arrow discipline in
the previous Games. India defied odds to
shock world archery powerhouse Korea 227225 in the gold medal clash.
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In the 17th Asian Games, the mens squash and

archery teams secured historic gold medals. India
enjoyed the most productive day so far with an
impressive collection of 10 medals to jump to the
11th position in the overall standings on the eighth
day of competitions, with three gold, four silver and
20 bronze medals. India was also assured of at least
five bronze medals in tennis event by reaching the
semifinals.
Info in Crux:
Young archer Abhishek Verma was hero of

the day as he combined with Rajat Chauhan
and Sandeep Kumar to clinch the gold medal
in the compound team event before picking
up the individual silver medal at the Gyeyang
Asiad Archery Field.
Mens squash team led by Saurav Ghosal
claimed the coveted gold medal in the team
event.
Womens team of Dipika Pallikal, Anaka

Alankamony and Joshana Chinappa excelled
by clinching the silver medal
Shooter Chain Singh (50m rifle 3 position),

archer Trisha Deb (womens compound
individual), grappler Vinesh Phogat (womens
48kg), Geetika Jakhar (womens 63kg) and
athlete Lalita Babar (womens 3000m
steeplechase), womens compound team
comprising Trisha, Purvasha Shende and
Jyothi Surekha Vennam were the bronze medal
winners on what turned out to be Indias best
day at the Games.
Women grapplers Vinesh and Geetika bagged
a bronze medal each in 48kg and 63kg freestyle
events respectively as India made an
impressive start in their wrestling campaign.
Geetika produced a dominant performance in

her bronze-medal bout against Vietnams Ly
The womens pistol trio of RahiSarnobat,

AnisaS ayyed and Heena Sidhu shot down a
bronze in the 25m range.
There was good news from the boxing ring as

Olympic bronze-medallist M C Mary Kom set
her campaign rolling in style by out-punching
Koreas Kim Yeji to enter the quarterfinals
along with two other Indian women boxers.
L Sarita Devi (60kg) and Pooja Rani (75kg)
were the two others, who advanced to the last
eight making it an all-win day for the Indian
women pugilists. Sarita got the better of home
favouriteChungsonRi, while Pooja defeated
ErdenesoyolUndram of Mongolia in her prequarters bout.
In tennis, Yuki Bhambri made it to the
semifinals of the mens singles event, while
Indias doubles pair of Saketh Myneni and
Sanam Singh, Yuki and DivijSharan, womens
doubles pair of Sania Mirza and Prarthana
Thombare and lone mixed doubles pair of
Sania and Saketh have all entered the last four
rounds in their respective events.
The famous shooter Abhinav Bindra bid
goodbye to professional shooting at the Asian
Games, winning two bronze medals in a highquality competition. Together with Ravi
Kumar and Sanjeev Rajput, Bindra also won
India the team bronze.
FIFAto Adopt Concussion Breaks
In order toensure that players suspected of

sustaining a concussion can be assessed, world
footballs governing body FIFA has announced
plans to allow referees to halt matches for three
[35]
minutes. Following high-profile cases at the World

Cup in Brazil, the issue of concussion in football has
made headlines.The incident has involved
Germanys Christoph Kramer during the final.
The medical committee reported that the World

Cup in Brazil had been a clear success from a medical
perspective, with a decrease in injuries and no
positive doping cases reported.The number of
injuries went down from 2.7 per match at the 2002
World Cup to 1.7 per match at Brazil 2014.
Compared to previous editions, fewer injuries were
caused by fouls, which shows the improvements in
refereeing.
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After discussion with team doctors and

confederations, FIFAs medical committee is to
submit a proposal to the bodys executive committee
in order to improve the protocol. Under the
proposal, whenever a suspected incident of
concussion occurs, the referee will have the ability
to stop the game for three minutes, allowing the
relevant team doctor to complete an on-pitch
assessment and decide if the player has suspected
concussion. The referee will only allow the injured

party to continue playing with the authorisation of
the team doctor, who will have the final decision.
[36]
EDITORIAL
NOT SIMPLY NO
The pro-independence surge faltered, and as the
results of the referendum filtered in, two things soon
became clear: Scots had responded to the call to vote
in unprecedented numbers, breaking all UK records.
And the noes had it by 55 per cent to 45 per cent.
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For a long time, Scotlands referendum

campaign had a rather settled pattern. The proindependence yes campaign offered formulations
of what an independent Scotland would be like: a
vaguely Nordic model was proposed, a social
democratic society, with public services underwritten
through a wisely invested oil fund. Where
Westminster had squandered, Scotland would invest.
And Scotland would remain in the European Union
and share the sterling in a currency union with its
former UK partner.
Nonsense, responded their opponents: Scotland
would be expelled from the EU, there would be no
currency union, and North Sea oil was insufficient
to underpin a basket-case economy. Internal
documents from the no campaign revealed their
own name for these tactics: Project Fear. Clearly
ahead in the polls, they felt no need to articulate a
more positive case for the union.
From February this year, however, there were

the first signs that the no campaign was in trouble:
opinion polls, stable for months, began to shift in
favour of independence. Their response was to
guarantee further powers to Scotland in the event
of Scotland rejecting independence: a pledge lacking
detail and substance, and also revealing serious
differences in the Better Together coalition on what
(if anything) they would be willing and able to
actually deliver.
Since these opaque promises were accompanied

by further siren warnings about the consequences
of independence, the yes campaign coined their
counter-slogan: Hope over fear. It worked; by
summer the polls had converged and the referendum
result seemed very much open to question.
In seeming panic, and just days before the poll,
the leaders of the three main UK parties jointly
signed a vow, published in a popular Scottish
newspaper, pledging extensive new powers for
Scotland and a schedule for delivering them. The
details remained vague, not least given that there
would be very serious parliamentary difficulties in
passing such legislation, and the vow outlined a
very ambitious timetable.
Any notion that the referendum settles the matter

should be set aside. Even before the poll it was clear
that a no vote would raise almost as many
questions as a yes. Given that a very large minority
of Scots 45 per cent rejected the 307-year-old
union with England, and given that a substantial
number of those who had voted no in the
expectation of further powers being granted, the
onus is now on the Westminster parties to deliver.
And scarcely have the ballot boxes been returned
to storage than there are stirrings of revolt amongst
English Conservatives. David Cameron, the British
prime minister, responding to the referendum result
promised to draw up not only plans to devolve
further powers to Edinburgh, but also to propose
changes in the ways that other parts of the UK are
governed.
On the face of it, this is a smart move by
Cameron: it promises concessions to concerns
beyond Scotland and may iron out the anomaly
of Scottish parliamentarians being able to vote on
purely English matters, long a concern of English
Conservatives. It also wrong-foots his bitter Labour
rivals in advance of the 2015 UK general election.
Labour has hitherto been the party of
constitutional change, having delivered the
legislation that enabled the devolution of powers to
Scotland, Wales and Northern Ireland in the late
1990s. Cameron can now portray himself, somewhat
disingenuously, not only as the prime minister who
saved the union on Thursday night, but the prime
minister who will redraw and buttress the union
more widely and wisely for generations to come.
But there are reefs aplenty ahead. First,
Camerons pan-UK vision does not augur well for
speedy delivery of more powers to Scotland. Any
inkling of unreasonable delay on delivering on these
vows and guarantees is likely to seriously reignite
the Scottish Question. Second, Northern Ireland is
[37]
already experiencing very serious strains on its

ongoing peace process, so any constitutional
tinkering there will need the careful time for thought
and negotiation that Scottish urgency makes difficult.
In short, the sensitivities of Northern Ireland and

the reluctance of the English to see the need for any
tinkering of their existing governance call for calm,
reflective and careful consultation on these issues.
Yet the time and flexibility available has been limited
by the guarantees made to Scotland during the
referendum campaign. There is more to come from
the Scottish Question.
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And finally and perhaps most intractably

there is the issue of redrawing the governance of
England, for it is not at all clear that the English
electorate want any serious change at all to their
structures of government. A federal or quasi-federal
solution for the UK fails, since this would demand
either strong regional legislatures in England (for
which there is little appetite) or an English
parliament. This latter, of course, would come to
dominate the UK in a less transparent way than the

existing Westminster Parliament and would, in all
probability, fuel further resentment.
Source: The Indian Express
STOP AND STEP BACK
The ministry of human resources development

has circulated a draft bill to central universities,
proposing to bring greater uniformity in governance
structures. The bill is reportedly based on the
recommendations of the A.M. Pathan Committee
that suggested, among other things, the abolition of
the post of chancellor and creation of a Council of
VCs headed by the HRD minister. The report has
also recommended the creation of a Central
Universities Recruitment Board that will make some
centralised appointments and a common admission
test. Many of these proposals may be problematic.
Higher education in India is subject to an
exceptional degree of regulation. Not only can
educational institutions not be profit-making, they
have to follow UGC norms pertaining to
infrastructure, teacher appointments and curriculum.
This regulatory framework has been criticised by
many as being too centralised. In developed
countries, universities have become centres of
excellence by innovating their own governance and
accountability structures. Their strong alumni
networks, for instance, are the outcome of a dynamic
evolution process rather than a centrally planned
system. The HRD ministrys response to the existing

low standards in higher education seems to be to
propose even greater centralisation.
Many sectors in India have witnessed innovation,
and subsequently, global competitiveness, once the
state has withdrawn restrictions. A similar approach
is required in education. Indias overly regulated
framework of higher education has resulted in a
situation where not even one university features in
the top 200 in the world. The US alone has 51. The
governments response is to propose an Indian
system of rankings keeping in mind the Indian
situation. In a rapidly globalising world, this insular
approach is bound to hurt learning outcomes even
more. To become global centres of research and
educational excellence, our universities need to adopt
globally successful structures of governance and
accountability. This requires less centralisation and
space for greater financial and functional autonomy.
The HRD ministry should move to a framework that
promotes innovation and competition, and at the
same time, protects students as consumers of higher
education.
UNITED STATES OF BRITAIN?
Some 17 years ago, on September 6, 1997, the

funeral of Princess Diana was a symbolically laden
moment. Making the British royalty a bit
uncomfortable, Elton John sang an all-time hit,
Candle in the Wind, in Westminster Abbey.
Originally written for Marilyn Monroe, the song was
adapted for Dianas funeral, and the new opening
lines were: Goodbye Englands rose, may you ever
grow in our hearts. The song went on to top
worldwide charts. Millions felt a lump in their
[38]
throats.
In New York, from where I was watching the

funeral on television, the enormous TV coverage also
featured Linda Colley, a British historian, then
teaching at Yale University and currently a professor
at Princeton. To the surprise of some, Colley
commented quite politely that Johns song, though
moving, was somewhat unfortunately worded.
Goodbye Englands rose belittled how much
the non-English parts of Britain had come to identify
with Diana, especially in her moment of death.

Moreover, her title was princess of Wales. Colleys
American TV hosts fumbled a little over this thought
but quickly inferred that England and Wales were
two different parts of Britain.
The Scots, in short, became Scottish and British

at the same time, just as the Welsh turned
simultaneously Welsh and British, over more than a
century of identity-construction. This was different
from France where, as the historian Eugen Weber
has demonstrated, peasants of the Basque country
and Brittany lost their regional identities a hundred
years after the French Revolution, and an
undifferentiated French identity was born.
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In this interpretation, Johns song was about an

exclusive England, not an inclusive Britain. Perhaps
that was unwittingly so, but we know that many
forms of consciousness become so deeply ingrained
that human beings do not easily question their
fraught implications or roots.
though the treaty of 1707 brought England, Scotland

and Wales together in a British union, there was no
British identity in place until the early decades of
the 19th century. And this new identity did not
replace the English, Scottish and Welsh identities;
rather, it added another layer, something that we
have come to call a hyphenated identity in modern
literature.
Colleys comments were not incidental. She had

already written a modern-day classic on the making
of British identity, with a focus on the relationship
between a tiny and proud Scotland and a big and
mighty England. First published in 1992, Colleys
Britons: Forging the Nation, 1707-1837 is widely read
by students of British history. But because it applies
modern nationalism theory to Britain, it also features
in nationalism courses. My seminars on ethnic
conflict and nationalism have had Colleys Britons
for over a decade and a half.
In the debate over the Scottish referendum on
September 18, Colleys work was referenced again
and again, and it will continue to inform future
debates. Scotland may have chosen to stay with the
United Kingdom, but 45 per cent of Scots voted for
separation, and the younger Scots did so
overwhelmingly. While the vote has closed a chapter
in that Scotland is not breaking away for now, it has
also opened another chapter.
This new, unfinished chapter has several

questions. What should be the relationship between
the various parts of Britain, indeed those of the UK?
How much power should London, or Westminster,
have? Should there be regional parliaments? Can
the UK continue to be a more or less unitary polity,
or should it head towards a constitutional debate
on a federal model, much like India, Canada and
the US, all former British colonies?
Indeed, when, alarmed by the late surge of
separatist sentiment, all three leading political parties
promised greater autonomy to Scotland, they opened
the way for a debate on what the entire political
structure should look like, not simply what should
happen to Scotland. In the emerging debate, the most
intriguing idea is an English parliament for England.
Should it come true, it will decidedly take the UK
towards a federal model.
Strikingly, Colley anticipated what we witnessed

last week. Let us understand why her claims have
profound implications. Colley argued that even
In Colleys account, four factors were critical in

the forging of British nationhood: shared
Protestantism; frequent wars with the foremost
Catholic power of the time, France (1702-13, 174348, 1756-63, 1778-83, 1793-1802, 1803-15); commerce
(in the early 18th century, every fifth British person
was involved in trade and traders needed the
protection of a strong state); and finally, the British
Empire.
Many Indian readers would be intrigued to learn
that India was instrumental in bringing the Scots
and the English together. It was India, says Colley,
that the Scots made their own. In terms of
population, the Scots were never more than 10 per
cent of Britain, but in the second half of the 18th
century, they constituted more than a quarter of the
East India Companys army officers, nearly half of
official writers and 60 per cent of free merchants
in Bengal and a substantial proportion of civilian
officers in Madras and Bengal.
Why were the Scots so attracted to empire?
Well-born and/ or well-educated Englishmen
usually had the pick of jobs back home, but even
men of first rate ability from Scotland had fewer
prospects on the British mainland. In contrast,
Britains empire, especially its Indian empire, gave
the talented, the lucky a chance to experience
luxury and the opportunity to build up a
substantial personal fortune.
Finally, and this is a point about dignity, not
material reward, the empire enabled Scots to feel
themselves peers of the English in
a way still denied them in an island kingdom.
The language bears this out very clearly. The English
and the foreign are still too inclined today to refer
[39]
to the island of Great Britain as England. But the

empire has always been emphatically British. It was
never called an English empire. In terms of self
respect, as well as profits it could bestow,
imperialism served as Scotlands opportunity.
A move towards federalism, which reimagines

England, Scotland, Wales and Northern Ireland as
states with parliaments or assemblies of their own,
with constitutionally designated powers and London
functioning as a federal centre, much like
Washington or New Delhi, would be the logical
movement forward. Such a denouement in the
coming years simply cannot be ruled out. We might
have something like a United States of Britain before
long.
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This argument constitutes the basis of Colleys

prediction about the difficulty of Britains survival
as an unreformed state today. Britain has lost its
empire; Protestantism is now a residual cultural
category, not a fervent religious belief system (God
has ceased to be British, and providence no longer
smiles); and wars with a Catholic France are neither
desirable nor possible.
institutions, especially political institutions, to be

relevant in the 21st century and after. A vote in
favour of unity has, paradoxically, opened the debate
for what a restructured future might look like.
Essentially, like other nations in the world,

Britain, too, is an invented nation. The historical
foundation now gone, it will have to re-engineer its
A FOREIGN ECONOMIC POLICY
For decades, pundits have described India and

China as rivals for leadership in Asia. Chinese
President Xi Jinpings recent visit to India suggests
that economic cooperation, rather than strategic
competition, could be the main driver for the two
Asian giants. If Prime Minister Narendra Modis
forthcoming meeting with US President Barack
Obama also gives due weight to economic
considerations, India could be on the verge of
significantly redefining its global role.
It is good that Modi pays attention to economics,
unlike the entrenched establishment in Pakistan,
which clings to military strategies even when the
cost is the countrys impoverishment. India and the
United States could still emerge as strategic partners,
but with shared economic interests rather than just
shared concerns about the balance of power. And
Sino-Indian rivalry could be postponed to a day
when both countries have modernised their
economies.
India has yet to realise its full potential as a

leading global economy. The rapid economic growth
that India has witnessed since the mid-1990s was
ushered in by much-needed reforms. After being
criticised by economists for its low rate of growth,
India finally earned a place among the worlds
leading emerging markets. Further reform could lead
it to greater success among the BRICS, that is, Brazil,
Russia, India, China and South Africa, and beyond.
Americans believe that India can achieve rapid
economic growth through innovation if it opens up
its economy to foreign technologies. As Modi and
Obama meet, Indian policymakers must recognise
that economic factors are as important to Washington
[40]
as they are to Beijing. For American FDI, India must

strengthen its intellectual property right regulations
and protect foreign investors who are exporting new
technologies to India. Greater protection for foreign
technologies will not only encourage growth and
innovation, but also bring in vital FDI.
New Delhi cannot afford to persist with its dated
modes of thought on pharmaceuticals or the defence
industry either. Spending on healthcare is only about
1 per cent of the GDP in India, making the country
one of the lowest spenders in the world. A number
of issues plague Indias healthcare sector, ranging
from a lack of infrastructure and financing to a
dearth of health workers across the country. Hatred
of Western pharmaceutical corporations cannot be
the core of Indias healthcare strategy.
While India has emerged as a hub for IT
outsourcing, it has lagged behind in exporting valueadded manufactured goods. It has been unable to
increase its share of technology-intensive products.
With wages rising and productivity falling in China,
India has a great opportunity to attract American
FDI in its manufacturing sector. Such investment
could go a long way in kickstarting Indias economy.
The country will require over $500 billion just
for funding its infrastructure needs in the next five
years. This fact makes capital market reforms a
critical component of the agenda. Lack of liquidity
and transparency as well as an excessive government
footprint in capital markets are a few of the problems
plaguing this sector. Any positive commitment from
Modi in this area would be music to American ears
and might help attract dollars for infrastructure.
With India seeking to modernise its armed forces

and diversify its arms acquisitions, opportunities for
stronger US-India defence ties will arise. The speed
with which the two countries collaborate will largely
depend on how reforms are introduced in Indias
defence sector. Both sides speak of the opportunities
for defence cooperation. But success in this arena
will require streamlining the licensing processes as
well as improving foreign and private participation.
Economic growth led to a rise in Indias global

standing and has radically improved the countrys
socio-economic indicators. It has also raised the
expectations of people within and outside the Indian
economy. The burgeoning middle classes expect
more growth from the economy and are keen to see
even more improvement in the country. So do the
major powers courting India.
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As the economy grows, Indias energy needs

continue to expand as well. The energy sector has
been dominated by monopolies and the state,
resulting in a lack of market-based mechanisms in
the sector. This has led to governance issues,
inefficiencies and a lack of strong competition from
private companies. Americans would like to see
market-based reforms in the energy sector.
significant progress in the last two decades and is

now counted among the worlds leading emerging
markets.
The first set of reforms, implemented in the early

1990s, marked Indias arrival on the global economic
map and made the country a key destination for
international investors and companies. It has made
The success of Modis initiatives with both China

and the US depend on his ability to put economics
at the centre of Indias new foreign policy. India has
a remarkable knack for exploring new ideas and
then settling for old ones. For peace and stability in
Asia, and in order to create a model for its
neighbours, one can only hope that India under
Modi will have the economic emphasis that the
prime ministers predecessor failed to sustain.
LET IN THE LIGHT
The Madras High Courts order requiring

applicants to place on record the reasons for seeking
information under the RTI Act runs contrary to the
spirit of the landmark legislation. It is also in
apparent conflict with Section 6(2) of the act, which
makes it clear that an applicant shall not be required
to give any reason for requesting information. The
ruling came in response to an application to the
Madras HC registry for file notings on a complaint
against a chief metropolitan magistrate the
registrys decision to turn it down was upheld by
the court. The intention of the legislature is not
that such informations are [sic] to be given like
pamphlets to any person unmindful of the object
behind seeking it, declared the court. The HC has
undermined the struggle for accountability by
providing discretion to officials to evaluate and reject
RTI applications based on the reasons for filing
them.
The Madras HC ruling is the latest in a string of
cases under the RTI regime that reflect the judiciarys
reluctance to be brought under its ambit. In April
this year, the Madras HC increased the fee for filing
RTI applications before its registry to Rs 100, despite
the Centre asking public authorities to peg it at Rs
10. In 2007, the SC refused to abide by a directive
from the Central Information Commissioner to
disclose the assets of its judges (it would later publish
this information, but as part of an in-house
exercise). Judges cannot be exposed to public

scrutiny or inquiry because it would hamper their
functioning and independence, maintained the
court. On an appeal against the CICs order, the
Delhi High Court, in a pathbreaking judgment
penned by then Chief Justice A.P. Shah, held that
the chief justice of India was indeed a public
authority under the RTI Act. The SC,
unsurprisingly, appealed to itself against the high
court verdict. That case is yet to be decided.
Since its passage, the RTI Act has met with
considerable opposition from the governing class.
In 2009, the UPA had sought to keep out vexatious
RTI requests, as well as applications for file
notings; amendments to this effect were
subsequently shelved. The government attempted
unsuccessfully last year to overturn the CICs order
declaring political parties to be public authorities.
Given the executives palpable disinterest, it is
incumbent on the courts to strengthen this crucial
legislation. But so far, its own evasion of the RTI
regime has cast the judiciary in a poor light. Courts
should expand the scope of information that can be
sought through RTI petitions. And they must begin
by making the acts provisions applicable to
themselves.
[41]
GAS AND HOT AIR

The government will soon reveal its decision
on gas pricing, which will shape Indias energy
landscape for the foreseeable future. The Kelkar
Committee has recommended that gas producers be
paid market-determined prices. But what does this
mean?
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Unlike oil, there is no global gas price. There are

regional markets, where prices are determined by
demand and supply. Gas supply contracts, which
were typically hitched to oil prices, are increasingly
linked to these regional market prices, reflecting a
growing consensus that gas market dynamics are
different. The three prominent markets used as price
benchmarks are the US (Henry Hub), the UK
(National Balancing Point) and Japan (Japan LNG),
which imports liquefied natural gas. Gas prices are
based on calorific value, measured in millions of
British thermal units (mmBtu). Consumers in the
US and UK pay prices three to four times lower
than Asian consumers because Asia produces little
gas and has to rely on imports, which are restricted
by price and destination clauses.
The Rangarajan Committee had recommended

basing the producer price on the average of the
Henry Hub, National Balancing Point, Japan LNG
and Indian import prices. While this is a somewhat
arbitrary price-formation mechanism, it attracted the
greatest criticism for its impact on the price level as
it would have pushed up prices for the domestic
consumer, particularly in the fertiliser and power
sectors, which account for 70 per cent of gas
consumption.
In India, the producer price of gas is set according

to the terms of the contract signed between the
government and the operator of the producing field.
Broadly, there have been three different contractual
regimes. Two of these, the nomination regime,
which covers production from pre-liberalisation-era
fields by national oil companies, and the new
exploration licensing policy, which covers
production under Indias current liberalised policy,
account for 60 per cent of the supply of gas. Under
these, prices have been set at $4.20/mmBtu since
2010. In contrast, Asian LNG import prices range
from $12-17/mmBtu.
So why the fuss? First, the pricing formula is
linked to the price of crude oil up to a cap of $60 per
barrel. But oil prices have persistently ranged around
$100. Second, the price of rigs is set by the
international market and capital costs of production
have doubled in the last decade. Given the static
domestic price, national oil companies, which
produce the majority of Indias gas, have insufficient
capital left over for reinvestment. For instance,
ONGCs production cost is such that it just breaks
even. Since it cannot reinvest to produce more gas
to meet Indias rising consumption, the deficit has
to be met by importing LNG at three times the
domestic price.
[42]
In fact, governments of countries with

underdeveloped gas markets tend to confuse price
formation with price level and often concentrate
on the latter for political reasons. Price formation
refers to the use of a sound mechanism for setting
and adjusting prices. It should reflect not only
opportunity costs (the cost of imports), but also the
cost of the fuels that gas is meant to replace in the
domestic market for instance, coal and diesel,
which are used to generate electricity. In China and
South Africa, the formulae take prices of competing
fuels into account in order to promote the use of
gas. The price level can be managed with policy
instruments. For instance, once a price-formation
mechanism is established, if fertiliser subsidies are
increased, the hike can be offset by using the extra
revenues from royalty and taxation.
Fear of the price level has led governments to
ignore the core issue of price formation. For instance,
some Asian governments are keen to link domestic
gas prices with the Henry Hub price, which has
remained low ($2-4/mmBtu) due to the shale
revolution. But this ignores the fact that the Henry
Hub price is underpinned by the dynamics of the
North American market and will therefore change,
and even rise, independent of Asias fundamentals.
Indias reforms reflect a wider move towards
marketisation. In China, an economy undergoing
similar changes, gas is being promoted to replace
environmentally harmful coal. A roadmap for gas
pricing reform was implemented in 2011, moving
the country from a controlled cost-plus (production
cost plus margins) system to a dynamic priceformation mechanism that reflects the prices of fuel
substitutes.
To manage the price level, the roadmap includes
a two-tier system with different prices for existing
and incremental (new) gas. The price of existing gas
will rise to eventually converge with that of
incremental gas. The roadmap also aims to establish

a national benchmark price at Shanghai. The
adoption of a clear price-formation mechanism and
roadmap has led to a five-fold expansion in Chinese
gas consumption over the last decade and boosted
production.
The Indian government needs to take a bold
decision. There are costs either way whether it

reforms gas pricing to increase domestic production
while risking consumer price hikes or continues to
control prices while importing growing quantities
of LNG at three times the domestic price to mitigate
shortages.
IT WILL TAKE A BIG VISION

India and Indian industry, and the Indian people,
have such massive networks of partnership.
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Chinese President Xi Jinping has left after an

unprecedented visit, especially considering the
relationship-building programme in Ahmedabad
personally coordinated by Prime Minister Narendra
Modi. Prior to this, the prime minister had an
outstanding trip to Japan, engaging with his
counterpart Shinzo Abe. Next on the agenda is the
United States, and clearly, the bar has been set high
by these two major international interactions. The
US visit can, and must, surpass Japan and China.
Atal Bihari Vajpayee spoke of India and the US
being natural allies. This has not happened. It is
also unlikely to happen in the near future because
of a variety of differences between the two countries.
But Modis visit this month can be path-breaking,
with a focus on relationship- and trust-building as
well as renewing confidence in furthering economic
relations. Achieving these two objectives will lay a
new foundation for the future.
India and the US are collaborating on multiple

fronts but the divide that separates them is also
significant. US policy towards South Asia, its benign
attitude to cross-border terrorism against India, its
somewhat lukewarm cooperation on intelligencesharing, its policy of intervention in the affairs of
other countries, its pressures on developing
economies on climate issues, its dominance of three
apex multilateral financial institutions, its
surveillance policy these are just a few of the
issues that separate India and the US. Sadly, there
are many more.
And yet, there is much that India and the US
can do together in the fields of energy (clean and
otherwise), education, health, technology,
innovation,
cyber
security,
space
and
entrepreneurship, to mention only a few areas of
huge potential. And, the near three million NRIs in
the US are a binding, linking army of quality.
Some of this is happening, partly with
government support; a lot of it freely between the
private sectors, which is a unique dimension of IndoUS relations. With no other country in the world do
If the potential is to be realised, mutual trust has

to be built. But how? Can lecturing and talking down
be avoided? Can there be understanding of the
leading and managing of 1.2 billion people? Can
respect be felt and shown? Can the US tune into the
great new priorities to change India, such as hygiene
and the girl child (or leave it to Bill Gates?) and can
there be an appreciation of the end to tax terrorism
and easier business processes? Can there be an
understanding that India has to resolve its challenges
the Indian way?
If there is an acceptance of two-way traffic and
that India is not an ally (that is, subsidiary!) but
a partner with its own culture and civilisation,
then, surely, trust and respect can flow from the
prime ministers visit. But these steps have to be
taken one at a time, even though much has happened
over the last 14 years, since Bill Clinton and Vajpayee
exchanged visits in 2000.
Sadly, there is sometimes a perception that
sections of the US government are more negative
towards India than its private sector, many of whom
are extremely successful in India. This necessarily
leads to a reciprocal reaction from Indian
government officials. Economic relations underpin
the India-US relationship, with trade at
approximately $100 billion at present, with $500
billion a clear medium-term potential.
But trade disputes and differences seem to have
dominated recently, rather than the big vision. The
insistence on India opening its market to imports,
especially in the food and agricultural sector, is a
non-starter as long as millions of poor Indian farmers
dot the landscape. The focus on the sale of defence
equipment, instead of going full steam ahead with
co-development and co-production in India, is
another challenge. But the opportunities can
transform business between the two countries.
Too often, however, in recent years, both
governments have dealt with economic issues in a
[43]
resolve the trust deficit between India and the US.

His words, actions, body language will be under far
greater scrutiny than those of Modi, who has shown
magnanimity in immediately accepting the invitation
to the US, in spite of recent history.
The dramatic change of government in India

makes it possible to boost US and Indian approaches
to the economic relationship to derive new benefits
for both sides. For India, more open trade and
investment policies are critical to renewing growth,
developing and accessing new technologies, creating
jobs, enabling citizens to achieve better lives for
themselves and their families, and increasing Indias
international competitiveness and national strength.
For the US, a stronger India will, by itself, be critical
to a stable and secure Asia and a valued partner in
dealing with regional and global challenges.
For India, there is no need to be defensive about

America. A multifaceted strategy and action plan,
reaching out to the US government, the states,
universities, think-tanks, the US Congress, scientists,
academics, corporations (including SMEs) and, of
course, NRIs, would enhance Indias reach and
influence not only in the US but across the world.
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transactional fashion. Without a shared commitment

to the larger goals of the US-India partnership, the
opportunities for strengthening economic ties have
been blocked by narrow interests, bureaucratic
obstacles and domestic compulsions.
Both countries are also trigger-happy about

finding fault with each other in public, rather than
working patiently and quietly to find solutions.
Fortunately, the last few months have been better in
that respect. If there is a trust deficit in India with
China, there is also a trust deficit with the US, of a
different kind and related to different issues.
As Modi has tried to address the issues with

China, to build a new partnership, US President
Barack Obama the host for the Modi visit will
need to shoulder the principal responsibility to
The prime minister is conducting an amazing

outreach exercise during his five-day stay, which
could launch a new vision of India and the US, of
Indians and Americans, together. This will need to
be followed up with imagination, reach and
resources to impact Indo-US relations positively and
for the long term.
Each nation works to its national interest. The
US, now in retreat from the world, has stated this
repeatedly. India, too, has its national interest, a fact
of life that has to be accepted and respected by the
US. The hope is that the national interests of India
and the US will converge increasingly for the mutual
benefit of the people of both countries. September
30 will reveal the way its going to be.
SHOWING WEAK JUDGEMENT
The decision of the Supreme Court in the

Peoples Union for Civil Liberties case (in which the
genuineness of nearly 99 encounters between the
Mumbai police and alleged criminals, resulting in
the death of 135 persons between 1995 and 1997,
were questioned) has avoided the real issue and is
disappointing. The direction given to the effect that
an FIR should be registered in all cases of encounter
deaths misses the core issue, namely that FIRs are
being registered today in every encounter case.
The trick the police engage in is to register an

FIR against the dead person under IPC Section 307,
alleging that he attempted to murder a police officer,
and since the accused is dead, the criminal case is
treated as closed by the police themselves without
taking the case to the magistrate.
As a remarkable full bench decision of the
Andhra Pradesh High Court recently held, the
correct procedure is to first register an FIR against
the police officer causing death. If the criminal
investigation revealed that the officer had fired in
[44]
self-defence, a closure report would be filed before

the magistrate and the case closed by the magistrate,
not the police. If the investigation showed that a
case under IPC 302 (murder) was made out against
the police officer, a chargesheet would be filed and
the trial would proceed. The crux of the matter was
the filing of an FIR against the police officer in all
cases of encounter killings. This is not done
anywhere in the country. The result is that criminal
prosecutions of policemen do not take place, which
is why fake encounters that amount to nothing but
extra-judicial executions have spread to every part
of this country. In the present case, the direction is
merely for an FIR to be registered. By this weak
drafting, the entire judgment is undermined.
The full bench decision of the Andhra HC was
regrettably stayed by the SC on an argument made
by the counsel for the state that the policemen who
risk their lives nabbing terrorists would themselves
face legal proceedings. The argument is more
rhetorical than real. If the law mandates that any
person who causes unnatural death must have an
quashed the prosecution. These cases sent shock

waves through civil society and reinforced peoples
impression that on police misconduct, the judiciary
generally stands with the establishment and not the
people of India.
The roles of the National Human Rights
Commission and the state human rights commissions
in dealing with fake encounters are uniformly
deplorable. After the majority decision of the SC
(Justice Sabharwal holding to the contrary) that
policemen could be appointed to these commissions,
they have been appointed everywhere and are
sometimes acting chairpersons. Apart from framing
guidelines that are proudly presented in court, these
commissions have become inactive and merely order
pitiable amounts of compensation to the families of
victims. This practice of ordering compensation
without prosecution is interpreted by the police in
a perverse manner as only requiring the police force
to pay for a killing. In police budgets throughout
the country, there must be a special line item for
such routine payments.
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FIR registered against him and be subject to a

criminal investigation where he may take the plea
of self-defence, and if the law makes no distinction
between a civilian and a person in uniform, then so
be it. The irritation caused to a policeman who takes
part in a genuine encounter can be obviated by
commencing the criminal investigation on the spot,
quickly recording the statements of the witnesses,
including independent witnesses, and then filing a
closure report before the magistrate, who would then
close the case. This is a small inconvenience
compared to the larger good of the rule of law
applying equally to civilians and policemen.
The second significant mistake lies in the

directive that encounter killings ought to be
investigated by the CID or a police team from
another police station. This is in spite of numerous
decisions by the SC that the CBI ought to be
appointed as the investigator and prosecutor in all
cases of custodial killings and fake encounters. The
CID or the police from another police station can
hardly be expected to act independently and
fearlessly. This judgment therefore undermines
previous decisions calling upon the CBI to replace
the state police.
SC decisions on fake encounters have, in the

recent past, been heartbreaking. The most shocking
of these was the decision in the Pathribal massacre
case in Kashmir, where the CBI reported that the
killings by the security forces were coldblooded
murder and yet the court held that the sanction of
the state under Section 197 of the IPC was necessary
for the prosecution of the officers. In a similar matter
arising from Punjab, where the CBI filed a
chargesheet confirming that a senior police officer
had killed the son of a senior civil servant in cold
blood and thereafter fabricated records to make out
as if the accused had escaped from custody, the court
It is time to break new ground. The orders of the

apex court in the case of the killings of over 1,500
persons in Manipur over the last decade saw the
setting up of a court commission headed by Justice
Santosh Hegde, who reported that from the sample
of cases considered, not a single encounter was
genuine and that not a single victim had a terrorist
background or even a criminal record. In the police
reform case, the court ordered that police complaints
authorities had to be established in every district
and headed by a judge. This judgment has been
subverted by the states, which have framed rules
for the authorities to be headed by policemen.
Judicial deference to the police must come to an end
if democracy is to survive.
ONCE UPON A PLAN
Doubtless the Planning Commission of yore,

which did the country service in days gone by, had
to be wound up and replaced by an organisation
more in tune with the free market. There is already
a deluge of suggestions about what should take its
place but I have no intention to add to these. My
purpose is to recall some memories of an institution
that once occupied centrestage, and with which my
professional association began at its inception.
On March 23, 1950, as a rookie reporter of a news

agency called the United Press of India (on whose
ashes was built the United News of India, which is
also now defunct), I was asked to cover an event at

the Federation of Indian Chambers of Commerce
and Industry (Ficci), which then operated from a
rented place. Since Prime Minister Jawaharlal Nehru
was to be the main speaker, the audience was large
and refreshments lavish. All this was overshadowed,
however, by the consternation following Nehrus
announcement that the government had just
constituted the Planning Commission, with him as
its chairman, to prepare five-year plans to promote
rapid economic growth and economic and social
justice.
[45]
in the Indian economy which does not find a

reflection in the plan, and there in nothing in the
plan which is also not found in Indian reality. It
was natural that the first exercise in planned
development should be a sort of reconnaissance
trip
The great excitement, even high drama, began
with the formulation of the Second Five-Year Plan,
because the task was basically assigned to P.C.
Mahalanobis, a man of formidable intelligence with
charm to match. He was the founder-director of the
Indian Statistical Institute in Calcutta, respected
across the world. At home, however, he had several
critics. Before finalising the framework of the second
plan, he had travelled abroad and invited many of
the worlds top economists, such as Jan Tinbergen,
Ragnar Frisch, Joan Robinson, Gunnar Myrdal, J.K.
Galbraith and Oscar Lange, to name only a few. At
a later date, the USs ruling establishment, in
response to an Indian request, sent Milton Friedman
to advise us. It is impossible to improve upon what
Galbraith had to say about this: It is like asking the
Holy Father to advise India on contraception.
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Hardly a couple of days had passed when

Finance Minister John Mathais resignation became
big news. He was protesting against the transfer of
some of his powers to the Planning Commission.
His place in both the finance ministry and the
Planning Commission was taken by C.D. Deshmukh.
In the initial years, the commissions vice chairman
was G.L. Nanda, who also served as minister for
planning. But later, Nehru entrusted the vicechairmanship to V.T. Krishnamachari, who had
better economic credentials. On the floor of
Parliament, communist leader Hiren Mukherjee
welcomed this change, declaring that Nandas
portfolio of planning reminded him of the grin
without cat that Alice saw in wonderland. Nandas
return to his old job in the Commission later was
typical of how government functions.
Even in those less-crowded days, any new outfit
had an acute problem of accommodation. The high
and mighty of the Commission got a place in a wing
of Rashtrapati Bhavan. All others, including the best
and brightest young economists, were scattered
around in wartime abominations dotting Lutyens
Delhi (some of them still exist.) Eventually, however,
the Yojana Bhavan was built.
From an early stage, I discovered that at the

bureaucratic level the moving spirit in the Planning
Commission was Tarlok Singh, a firm believer in
planned development and social change and a man
with impeccable manners. To call him a workaholic
would be a gross understatement. No wonder then
that after the first general election, when the Lower
House was renamed the Lok Sabha, by common
consent, the Planning Commission began to be called
Tarlok Sabha. Singh spent the rest of his career in
service of the Planning Commission. By the time he
had risen to the rank of additional secretary, he was
elevated to the Commissions membership. Another
distinguished functionary so honoured was Pitambar
Pant, one of the many brilliant economists serving
the Commission who headed its Perspective
Planning Division. He could be a hard taskmaster,
simply by working harder than any of his colleagues.
The First Five-Year Plan began in 1951, although
the final plan document wasnt ready until two years
later. In the words of I.G. Patel, who held every
high economic office and was economic advisor to
the Planning Commission almost permanently, the
first plan was like the Mahabharata: there is nothing
The Mahalanobis model, placing great emphasis

on the capital goods industry in the public sector, is
ridiculed these days. But at that time, a panel of 24
eminent Indian economists endorsed it, with the
solitary exception of B.R. Shenoy. The second plan
did run into difficulty because of a massive foreign
exchange crisis. It had to be pruned and foreign aid
sought assiduously. This task was performed
admirably by B.K. Nehru.
The Third Five-Year Plan was interrupted by the
1965 India-Pakistan War and by the deep struggle
for power within the Congress party, even after
Indira Gandhis succession to Lal Bahadur Shastri.
In 1967, when Morarji Desai became deputy prime
minister in Gandhis cabinet, he persuaded her to
appoint one of the most respected professors of
economics, D.R. Gadgil, vice chairman of the
Planning Commission. Shortly after sacking Desai
in 1969, she forced Gadgil to quit too. He left Delhi
for Bombay by train the day after resigning. He was
not well and even fainted at the railway station, but
insisted on leaving. Sadly, he never reached Bombay
but died during the journey, with only his wife by
his side. This was also the beginning of the Planning
Commissions decline and fall.
ENCOUNTER WITH REALITY

The Supreme Courts order defining guidelines
[46]
for encounter fatalities has been a long time coming

crowd-control duties or counter-insurgency

operations in remote and jungle locations.
Many encounters with armed insurgents involve
scores, and sometimes hundreds, of armed
miscreants and state personnel. The idea that these,
under situations of extreme stress, in locations that
are at best under transient state control, can be
subjected to meticulous investigation by a range
of independent agencies, is unrealistic, given
existing police capacity and acute deficits in forensic
and technical capabilities across wide regions
affected by insurgency. Of course, even in a case
such as the Chintalnar massacre, where an entire
CRPF unit of 75 personnel and one state police
trooper were wiped out, an independent inquiry was
carried out deep inside Maoist-dominated jungles,
even as the investigative team came under insurgent
fire. Whether such procedures can be replicated in
such circumstances in all encounter cases is a moot
question. Further, the requirement of magisterial
inquiry is also likely to be limited to depositions in
secure district headquarters. I do recall that at the
height of terrorism in Punjab, when a slew of
baseless allegations regarding false encounters was
being pressed by a range of terrorist front
organisations and useful idiots, I had suggested that
an executive magistrate should accompany each unit
that went into counter-terrorist operations. We did
not join the service to get ourselves killed, was the
derisive response from the magistrates.
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the appeal was first filed in 1999. But it is a

critical reiteration of the law at a time when there
has been a tremendous deterioration in the top
leadership of the police. The involvement of police
officers, including many in the hallowed IPS, in cases
of massive corruption, their extreme politicisation
and at least some cases where encounters have
allegedly been transformed into outright
assassination at the behest of rival criminal gangs
underline the necessity of procedural safeguards. The
issue of encounters, fake and genuine, is crucial to
the credibility of the police and of the justice system,
particularly within a democratic polity. It is
necessary to acknowledge that, while the police does,
and must, have powers to take a mans life under
certain pressing circumstances, preventing the abuse
of such powers has to be a concern.
The main thrust of the 16-point guidelines issued

by the court endorses existing laws on the subject,
the most significant of which are already followed
in all but the most egregious cases. Crucially, an
independent inquiry by a senior officer of a
jurisdiction other than that of the operational unit
involved or by an independent agency like the
criminal investigation department of the state, in
some cases, is routine in all encounter deaths. A
magisterial inquiry under Section 176 of the Criminal
Procedure Code has long been an option, but has
rightly been made mandatory by the present order.
Far from undermining the authority of the police, it
will provide greater legitimacy to justifiable cases of
the states use of lethal force and constrain the
criminality of ketchup heroes who fabricate
encounters to earn accolades and awards or abuse
their powers for extraneous reasons.
There are, nevertheless, some difficulties with

the order, not so much because the requirements
themselves are unacceptable, but rather because of
the dismal state of policing, and police and
administrative capacity. The guidelines call for
detailed evidence-gathering in the wake of each
incident of death in encounters, including the
immediate record of statements, dusting for
fingerprints, recovery and preservation of
evidentiary material including blood-stained earth,
hair, fibres and threads, etc, preparation of
topographical sketches of the location of the incident,
gathering of evidence of weapons, including bullets,
cartridges, testing for gunshot residues, etc. The truth
is, even in cases of crime in police-dense
metropolitan areas, standards of investigation are
abysmal, and the courts order makes no distinction
between an encounter in such a city environment,
The directive regarding recording of intelligence

flows is also likely to create practical problems. Such
a record will either be of so general a nature as to
have no evidentiary utility or would have the
potential to put operations and lives at risk, if
it were to be compromised. The very pattern of
intelligence flows can result in the identification of
sources. Moreover, a number of operations are the
outcome of immediate opportunity, where forces are
engaged in general area domination or patrolling
exercises. If this guideline is to be meaningfully
followed, the court and the top police leadership
will need to apply their minds to the character and
content of the records to ensure that errors of
judgement do not compromise operational efficacy.
The court rightly cites its own judgment in Om
Prakash vs State of Jharkhand (2012), where it was
noted that one cannot be oblivious of the fact that
there are cases where the police, who are performing
their duty, are attacked and killed Unless
unimpeachable evidence is on record to establish
that their action is indefensible, mala fide and
vindictive, they cannot be subjected to prosecution.
[47]
Sanction must be a precondition to their prosecution.

It affords necessary protection to such police
personnel An impartial procedure that satisfies
the imperatives of justice as well as the interests of
effective enforcement is, of course, necessary in all
cases of encounters. It remains to be seen whether
the present guidelines can actually secure these

objectives in the chaotic operational environment
that characterises enforcement action in India, under
the present circumstance of endemic deficits in
manpower, training and technical support.
NEW DRUG ERA

And he did walk the talk. At least for a while.
In 2008, a brazen Cipla released a generic version of
a patented lung cancer drug and took on the litigious
might of Roche, a Swiss multinational. Fortunately,
Cipla won the case at the first instance, arguing that
their cheaper version should be kept on the market
for the sake of poor patients. However, in a
surprising move, the company recently opted to
pursue a settlement with Roche. This, after four years
of litigation, three sets of appeals and a full-fledged
trial, which resulted in a verdict largely favourable
to Cipla.
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Prime Minister Narendra Modis US visit is likely

to throw up highly contentious intellectual property
rights issues. Indeed, for the last several years, US
drug majors and their European counterparts have
lobbied hard to demonise the Indian patent regime.
But the government must continue to defend the
law and stand its ground. Particularly since our own
industrial moguls have caved in and are less vocal
about their opposition to a global patent paradigm
scripted by Western industrial interests.
It is against this backdrop that one must view
the latest deal between Gilead, a leading US
pharmaceutical company, and seven Indian generic
firms, to manufacture and distribute an important
antiviral in several low- and middle-income
countries. The deal pertains to the licencing of
Sovaldi, a patented hepatitis C drug that
revolutionised treatment but is priced at a whopping
$84,000 for a three-month course. Faced with
mounting pressure from patient groups and strong
patent opposition in India, Gilead announced that it
would sell Sovaldi for $900. Immediately thereafter,
it announced the licencing arrangement.
It even went to the extent of explaining this

private commercial deal to the commerce minister,
presumably to ward off compulsory licencing. After
all, two years ago, another excessively priced
patented drug, Nexavar, was forcefully licenced to
an Indian company for manufacture at a 30th of the
price at which the German patentee, Bayer, was
selling it in India.
The announcement of Gileads licencing
agreement generated consternation among public
health activists, who believe that its patent is
vulnerable under Indias stringent patent standard,
which was upheld by the Supreme Court in the
famous Novartis case. One wonders: would such a
deal have been struck a decade earlier? Perhaps not.
At least not with Cipla, a much-admired company
whose visionary leader, Yusuf Hamied, had held
that the introduction of pharmaceutical patents in
India would cause a genocide and that he would
do all he could to mitigate the disaster.
[48]
What does all of this mean? Are we seeing a

new phase in pharmaceutical history? Does this have
to do with a gradual whittling away of the sharp
innovator-versus-generic divide? A divide that is
often considered a defining feature of the
pharmaceutical industry, distinguishing it from most
other technology sectors. Notably, while the high
technology sector routinely sees a fluid innovator
versus infringer dynamic, with Microsoft and Google
suing as much as they are sued, the pharmaceutical
industry is different. Patent positions are more
ossified, with alleged innovators, typically MNCs,
suing generic copycats, typically Indian companies.
However, it would appear that this dividing line is
now blurring, with generic companies aspiring to
jump on to the innovation bandwagon, and drug
innovators waiting to acquire generic divisions.
The last few years have seen an increasing
number of partnerships, collaborations and mergers
between the hitherto warring factions. But this is
hardly surprising. In the world of business,
pragmatism often trumps principle.
Given the increased patent scrutiny and the
mounting pressure of instruments such as
compulsory licencing and drug price control,
innovators are looking to partner with generic
companies for local manufacture and distribution of
their drugs at cheaper prices. On the other side of
the fence, the advent of biologics, a species that is
often difficult to copy, and increased regulatory
pressures are forcing generic firms to rush into the
welcoming arms of drug innovators.
Cipla reflects this changing paradigm. Under

Hamied, the company positioned itself as a strong
ideological warrior, taking on the global might of
MNCs and slashing prices of patented HIV
medicines to save thousands of lives in Africa.
Today, it is just like any other corporate that seeks
to enhance shareholder value and readily aligns with
those that it had vehemently opposed in a bygone
era.
It is this new dynamic that Modi must bear in

mind as he negotiates with a partner that is all too
keen to collaborate on the IP front, but mostly on its
own terms.
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All of this means that public health and

affordable access will take a severe beating. We can
no longer expect our home-grown generic companies
to guard this turf. Growing partnerships between
them and global innovators will mean fewer patent

challenges. As such, the government cannot remain
content with relying on free-market competition
from the generic sector to bring drug prices down.
It has to play a more active role to foster affordable
healthcare and revive its once-prominent public
sector units.
MAKING IN INDIA
During 2004-05 and 2011-12, when Indias GDP

rose annually by 8.3 per cent on an average, its
manufacturing sector grew at an even higher rate of
9.25 per cent. The next two years saw average GDP
growth slump to 4.6 per cent and manufacturing to
a mere 0.2 per cent. It follows, therefore, that a
genuine economic recovery is almost impossible
without a turnaround in manufacturing. A
manufacturing revival is also important from an
employment perspective. The period between 200405 and 2011-12 witnessed, for the first time, a
reduction in the countrys agricultural labour force
by almost 40 million. This was enabled by an
estimated 50 million-plus jobs being created outside
of farms. Without a strong manufacturing sector
which has forward as well as backward linkages to
construction, transport and related service industries
there just wont be jobs for the 10 million-odd
people entering our workforce every year. This
would force a distress reverse migration back to
farms and other low-paying rural jobs.
It is in this context that the thrust on
manufacturing, underlined by the Make in India
campaign to be launched on Thursday, is welcome.
Given that the manufacturing sector is still in the
doldrums the measly 2.3 per cent year-on-year
growth registered in April-July is proof of this
Prime Minister Narendra Modi is aware of the dire
need for getting our factories to roar back to life.
The planned high-profile initiative at marketing
India to both overseas and domestic corporates
represents, if anything, a concerted effort to attract

investments into manufacturing. Indias large and
growing market for everything from mobile
phones and LED TVs to steel, chemicals and power
equipment no doubt makes it a compelling place
for producing stuff that can be directly sold here.
Modi has gone a step further by imploring investors
to sell anywhere (including abroad), but
manufacture here. Rising labour costs in China only
reinforces such optimism about India emerging as
the worlds next big factory.
It will, however, take more than simple slogans
to convince a Samsung, Hitachi or Haier to make
things in India that they are largely importing now.
There are two broad sets of impediments here. The
first is the lack of reliable power, roads, water and
other infrastructure, which nullifies much of the
inherent competitive advantages in manufacturing
out of India. The second is the web of domestic
regulations pertaining to labour, taxation, land
acquisition, environment and other statutory
clearances. Navigating through these is both timeconsuming and costly, which also explains why India
ranks 134th among 189 economies in the World
Banks Ease of Doing Business ratings. Realising the
Make in India dream would require the Modi
government to address both the hard infrastructure
and soft regulatory issues. The fact that many of
these fall under the domain of the States poses an
even harder challenge.
[49]
THE NUTS AND BOLTS OF REVIVING GROWTH

To its credit, the present government has not
targeted a growth rate; instead it has laboriously
chalked out development vision and objectives
which will form the foundation of economic
development. To appreciate the impact of concerted
development policy on human development and
economic growth, there is perhaps no other better
example than China.
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The process of liberalisation and unleashing of

the forces of development and entrepreneurship
started in China in 1978.
Like China, we need to create the right policies

to propel manufacturing into a higher trajectory
The desired rate of growth of a country always

attracts a lot of media interest. And with good
reason. Sample some tickers: China is in a slump if
its GDP grows less than 8 per cent; the US should
grow above 3 per cent to be considered buoyant;
India must get out of below 5 per cent growth rate
and rise to above 8 per cent.
Globally, media and market participants have
made growth rate a driver of investor sentiment and
perhaps may also unduly influence government
policy.
That said, it is now long forgotten that economic

development is the foundation on which a country
and its people prosper, and the result is growth.
Economic development is the result of sustained,

concerted actions of policymakers and communities
that promote the standard of living and economic
health of a specific area.
Such actions can involve multiple areas including

the development of human capital, critical
infrastructure,
regional
competitiveness,
environmental sustainability, social inclusion, health,
safety, literacy and other initiatives.
Development and growth
Economic development differs from economic

growth. Economic development is a policy
endeavour which aims at economic and social
wellbeing; economic growth is a phenomenon of
productivity and rise in GDP.
Consequently, as economist Amartya Sen points
out: economic growth is one aspect of the process
of economic development.
[50]
Experts talk of the four phases of development

in China, namely, Emancipation (1978-84), Reckoning
(1985-89), Rebirth (1990s) and Overdrive (2000s).
A report by the US congressional Research
Service called, Chinas Economic Rise: History,
Trends, Challenges, and Implications for the United
States traces the various steps taken and stages of
development of China over the last three decades.
The report states that beginning 1979, China
launched several economic reforms and continued
the journey of implementation over the last three
decades.
The report says economists generally attribute
much of Chinas rapid economic growth to two main
factors: large-scale capital investment (financed by
large domestic savings and foreign investment) and
rapid productivity growth.
These factors appear to have gone together hand
in hand. Economic reforms led to higher efficiency
in the economy, which boosted output and increased
resources for additional investment in the economy.
The foreign factor
Chinas trade and investment reforms and

incentives led to a surge in FDI beginning in the
early 1990s. Such flows have been a major source of
Chinas productivity gains and rapid economic and
trade growth.
The extent of to which foreign enterprise and
capital has contributed to Chinas development is
staggering:
There were reportedly 445,244 foreign-invested
enterprises (FIEs) registered in China in 2010,
employing 55.2 million people or 15.9 per cent of
the urban workforce.
FIEs account for a significant share of Chinas
industrial output, increasing from 2.3 per cent in
1990 to a high of 35.9 per cent in 2003.
and the US in 2010.
FIEs are responsible for a significant level of

Chinas foreign trade. In 2013, FIEs in China
accounted for 47.3 per cent of Chinas exports and
44.8 per cent of its imports.
In 2012, the value of Chinas manufacturing on

a gross value-added basis was 28.2 per cent higher
than that in the US. Manufacturing plays a
considerably more important role in the Chinese
economy than it does for the US and Japan.
FIEs in China dominate Chinas high technology

exports. From 2002 to 2010, the share of Chinas high
tech exports by FIEs rose from 79 per cent to 82 per cent.
Perhaps, if at all India needs to target a number,

it is its merchandise trade deficit and low
representation of manufacturing.
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According to the United Nations, annual FDI

flows to China grew from $2 billion 1985 to an
estimated $121 billion in 2013. The U.N. further
estimates the stock of FDI in China through 2012 at
$832.9 billion.
In 2011, Chinas gross valued-added

manufacturing was equal to 30.5 per cent of GDP,
compared to 12.3 per cent for the US and 18.7 per
cent for Japan.
Unfortunately, India, where liberalisation began

in 1991, seems to drift in its execution of ambitious
development plans.
We need to move to an era of trade surplus for

which we need to increase the level of manufacturing
activity.
Perhaps, being a complex democracy it has given

birth to regressive structures which tend to retard
development and growth.
The constitution of Indias GDP, even after a

period of substantial growth is largely represented
by agriculture and services. Indian manufacturing
as percentage of GDP is a low 13.72 per cent while
in China it stands at 32.27 per cent.
India seems to have reached a mature

Emancipation and Reckoning stage and is now
moving into Rebirth stage. India continues to
depend substantially on Agriculture and Services as
engines of growth and contributors to GDP.
Agriculture recorded a growth of 165.13 per cent

in India as compared to 121.81 per cent in China
between 2004 and 2011.
Services constitutes more than 51.15 per cent of

our GDP, similar to any developed nation which
enjoys state of the art infrastructure and whose per
capita income is amongst the highest in the world.
We are still a poor nation with poor infrastructure.
Many market analysts and investors have

forecasted India to be a $5 trillion dollar economy
by 2020.
It is safe to summarise that this monumental
target cannot be achieved without India achieving a
merchandise trade surplus supported by a
manufacturing base which represents more than 20
per cent of the GDP.
To make this possible, like China, India will have
to invite foreign companies to invest and build multibillion dollar export-oriented complexes.
Economic reforms and trade and investment

liberalisation helped transform China into a major
trading power.
The markets have found the Prime Ministers

vision exciting and laudable. Inflows into equity
markets have revived.
Chinese merchandise exports rose from $14 billion

in 1979 to $2.2 trillion in 2013, while merchandise
imports grew from $18 billion to $1.9 trillion.
If investments are productively implemented, the

momentum created from the allocations will drive
growth and sentiment.
Manufacturing focus
China has emerged as the worlds largest

manufacturer according to the United Nations.
It overtook Japan as the worlds second-largest
manufacturer on a gross value-added basis in 2006
If execution becomes a risk, all attention will

move back to GDP growth rate rather than the
factors which make high growth possible over a
period.
INDIA RIGHT IN TAKING ON WTO TOP GUNS
Full marks to Prime Minister Narendra Modi and

Commerce Minister Nirmala Sitharaman for their
stand with the World Trading Organisation,
informing the latter that there is no deal on trade
facilitation if the food security issue is not taken

care of.
This issue has been widely reported with
[51]
predictable reactions in the global media against

India. Votaries of free trade in India with stakes in
foreign flow of capital into the country have also
criticised this stand, concerned that India would lose
the favour of investors, although going by the recent
announcements of the Japanese and Chinese that
does not seem to be the case.
This is a serious issue that every nation is

struggling with. By reiterating this, India will take
a global leadership stance that will be applauded.
The WTOs workings are often at loggerheads
with sovereign rights. In the current instance, the
AoA is restricting Indias right to stockpile
foodgrains to ensure the food security of its people.
When pushed back, the developed countries are
glibly arguing that India can always import the
necessary foodgrains whenever it falls short. While
this serves the trading interests of western countries,
it leaves India vulnerable. The argument is
meaningless since India is growing adequate
foodgrains to take care of its needs, and the proposed
restriction on subsidy and stockpile is an artificial
one.
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Having pushed back at the WTO, now what?

India may have won an argument; now it must win
the debate. India needs to play on the front foot,
and take the discourse up to another level altogether.
principle: that a countrys sovereign rights and

obligations are paramount and cannot be sacrificed
at the altar of free trade or globalisation.
India is willy-nilly placed to take a leadership

role on the issue, set the context for the ongoing
debate, and take the opportunity to reaffirm some
incontrovertible principles to set the tone for the
role of the WTO.
Push for fair trade
At the heart of Indias argument is that the WTO

is not playing fair. The key issue relates to the WTOs
Agreement on Agriculture (AoA), which the
developed nations put together in their favour in
the 1990s. This agreement is now locked away and
the developed countries are not interested in reopening it. Under this, countries such as India have
to keep product-specific (rice and wheat are the main
products) food subsidy within 10 per cent of the
value of total production.
Subsidy is calculated as follows: current market

price less the reference price that has been set at
1986-88 levels under the AoA. Yes, the reference
price goes back over 25 years!
This is utter nonsense. If the subsidy is exceeded,
India faces the risk of litigation and sanctions under
WTO rules.
Instead of dealing with this in a straightforward

manner, the developed countries offered a peace
clause during the Bali discussion in December 2013
which was, unfortunately, accepted by the UPA
government.
Under this, they said that India will not face any
sanctions till 2017, and a permanent solution is
supposed to be found within this period. There is
no recourse mentioned in case this deadline is not
met (deadlines are frequently missed by the WTO),
leaving India vulnerable.
The Modi government has rightly rejected this,
asking that this matter be resolved now.
Sovereign rights are supreme

India should clearly articulate the following
[52]
The underprivileged
The WTO has been set up to push the agenda of

open global trade, irrespective of the consequences.
It is in the nature of such things that trade benefits
the strong and the privileged. Indeed, the
underprivileged do not even have a seat at the table.
India should reaffirm its commitment to the
underprivileged and unequivocally state that it has
an obligation to protect their interests even at the
cost of alienating the proponents of global trade.
By making this a privileged vs underprivileged
issue, India can win over the majority opinion. This
argument is closely tied to the human rights issues
so close to the hearts of western liberal democracies.
Should there be a food crisis in India the country
will be accused of violating human rights and not
ensuring adequate supply of food.
And yet the very practices of the WTO in the
cause of global trade may cause these human rights
violations to happen a situation that will not be
acceptable to anyone.
There is another point in the ongoing debate that
needs to be addressed. The western nations are
saying that the Trade Facilitation Agreement (TFA,
designed to streamline customs procedures and flow
of goods), which India has held up, should be
delinked from the issue of food subsidy and food
security.
This is a self-serving argument. If the tables were
turned the other way, suppose India had its way
with a revised AoA and the TFA was pending, there
is very little chance that one would be moved ahead

without the other.
A contract must be concluded with all pending
issues taken together. India is right to insist on this,
as otherwise the pending matter which is of vital
importance may never get resolved satisfactorily.
If India does not set the discourse, or at least

significantly influence the discourse, the narrative
will be taken over by interests working against India.
India has taken a bold stand. It must see this
through without blinking first.
INDIAS GATEWAY TO THE EAST

ethnic minority areas.
After years of bonhomie during military rule,
Myanmars relationship with its largest neighbour
China is under strain. Chinas Yunnan province
borders the sensitive and insurgency-ridden Kachin
and Shan states in Myanmar.
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In the minds of New Delhis elite, Indias South

Asian neighbourhood is made up solely of the seven
members of Saarc, even though we share no land
borders with three of them. We tend to forget that
four of our north-eastern States Arunachal
Pradesh, Nagaland, Manipur and Mizoram share
a 1640 km land border with Myanmar. Not only is
Myanmar a member of Bimstec, the Bay of Bengal
grouping linking Saarc and Asean, it is also our
gateway to the fast growing economies of East and
Southeast Asia.
While successive leaders of Myanmar, who are
devout Buddhists, have looked upon India
predominantly in spiritual terms, as the home of
Lord Buddha, they recognise that an economically
vibrant India provides a balance to an increasingly
assertive China. Sadly, we have not been able to
take full advantage of either our shared Buddhist
heritage by facilitating increased pilgrimages, or used
our economic potential effectively to promote our
interests.
Changing situation
Ties between India and Myanmar have quietly

blossomed over the past two decades. The respective
militaries and security agencies of the two countries
have facilitated cooperation across the border. This
has led to effective action against cross-border
insurgencies and narcotics smuggling. Myanmars
information minister recently reiterated his
governments readiness to crack down on Indian
insurgent groups such as the ULFA (Assam), PLA
(Manipur) and NSCN-K (Nagaland). India, in turn,
has acted firmly against Myanmar insurgents
entering its territory.
Myanmar has moved steadily in easing the
rigours of military rule since the elections that swept
President Thein Sein to power in 2011. The military
still has a crucial role in national life, as negotiations
are on to achieve a comprehensive ceasefire with 16
well-armed insurgent groups drawn from ethnic
non-Burmese minorities. This is no easy task, but is
a prelude to negotiations on the highly sensitive
issue of federalism and provincial autonomy for
The China factor
China has helped significantly in building

Myanmars infrastructure and equipping its military.
Indias fears of Chinese bases in Myanmar were not
borne out. But differences between China and
Myanmar have grown recently, especially on large
projects like the Myistone dam, which had to be
junked, and a proposed railway line to connect
Yunnan to the Bay of Bengal. There is growing
opposition to Chinese projects in copper and nickel
mining. The sentiment is that China has taken
Myanmar for a ride regarding an oil pipeline linking
Yunnan to the Bay of Bengal port of Kyaukphu.
There are concerns over Chinese involvement
with insurgent groups such as the Kachin
Independence Army and the United Wa Army.
Despite this, border trade across the YunnanMyanmar border is booming, reaching $4.17 billion
in 2013, against a mere $35 million border trade
across the India-Myanmar border, though the
unofficial trade (smuggling) across this border is
estimated at around $300 million annually.
Indias former Ambassador to Myanmar VS
Seshadri has authored a report spelling out how
India has been tardy in building connectivity
through Myanmar to Thailand and Vietnam and
securing access for our landlocked north-eastern
States to the Bay of Bengal. Our border trade
regulations are formulated by mandarins in North
Block and Udyog Bhavan who have no idea of the
ground situation. They could learn a thing or two
from Chinas pragmatism the manner in which it
treats the markets with its neighbours not as foreign,
but as extensions of its own markets. Opening up
such trade will also enable our north-eastern States
to meet their growing requirements of rice at very
competitive rates.
[53]
exploration rights for gas in the Bay of Bengal, we

conducted our project planning and diplomacy so
clumsily that we did not have a strategy ready for
taking the gas to India through a pipeline across
Myanmar and our North-East, or for transporting it
as LNG. China deftly stepped in and took away all
this gas by expeditiously building a pipeline to
Yunnan province.
In the mid 1990s, Myanmar offered us hydroelectric projects with a potential of over 1,000 MW
across rivers near our borders. We took years to
scrutinise these projects, which companies in South
Korea earlier offered to construct. After nearly two
decades we backed off. Our private companies too
not been able to avail offers of land for plantations
across Myanmar.
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Unless we learn to look at our neighbours the

way China does, bearing in mind the inherent
strengths of our economy, we can never match the
economic influence of China on our borders in the
North-East. The new minister for north-eastern
affairs VK Singh has served at length in the NorthEast. It is hoped he will liberalise procedures and
permit trade across borders with Myanmar in
currencies traders mutually agree upon. Vehicles
should move freely across the borders on roads
through Myanmar, to Thailand and Vietnam.
Moreover, the Kaladan multimodal corridor
linking our north-eastern States through the port of
Sittwe in Myanmar will be useful only if Sittwe
becomes the key port for India-Myanmar trade. India
has done remarkably well in human resource
development projects in Myanmar. It has played the
lead role in the establishment of the Myanmar
Institute of Information Technology, an advanced
centre for agricultural research and education, an
agricultural university and welcomed many
Myanmar professionals for training in its medical
and engineering institutions.
Tardy record
But we would be less than honest if we did not

admit that in project and investment cooperation,
our record has been tardy. After having secured
India was offered hundreds of acres of land for

agriculture and for bamboo plantations for making
paper pulp, close to its borders. Two private sector
companies signed MoUs with Myanmar
counterparts. But Myanmar officials found our
private sector to be more bureaucratic than our
government. India lost access to huge bamboo
resources which went to a Thai company that
clinched a deal in weeks something our
companies could not achieve for nearly two decades.
A WRONG CORRECTIVE
The Supreme Courts final order on coal mine

allotments, cancelling all but 14 out of 218 blocks
awarded between 1993 and 2012, is truly
unfortunate. The court has applied the guillotine
uniformly, sparing not even the 42 blocks where
coal is already being extracted or which are ready
for mining. The sweeping order may be the logical
corollary of declaring the allotments illegal and
arbitrary. But in choosing to use a broad legal
brushstroke and thereby losing sight of pragmatic
detail, the court has failed to accord due importance
to the fact that allottees have made investments of
several thousand crores in developing the blocks
and setting up coal-fired plants; besides, there is a
risk that the large sums of bank money lent to these
projects could turn into non-performing assets. There
is uncertainty now on the fate of end-use power
and steel plants. Where is the coal to sustain their
operations going to come from? There is no
guarantee that the de-allocated blocks would revert
to them, more so in the event of their being
auctioned.
[54]
A more sensible and fair approach would have

been to de-allocate only the 160-odd blocks that are
not producing or for which mining leases havent
been executed. In many cases, there is reasonable
suspicion that the allottees were mere squatters and
had no plan to develop the blocks at all. But the
blocks producing coal, the right recourse may have
been to impose a penalty on their allottees, equal to
the presumed loss to the exchequer from the illegal
and arbitrary allotments for every tonne of coal
extracted. The court, instead, has delivered a twin
blow by ordering the allottees to pay an additional
levy of Rs 295 a tonne for all the coal mined so far
amounting to some Rs10,000 crore and also
surrender their blocks.
The only way out now for the Centre is to allow
Coal India to take over these mines so that supplies
to end-use plants continue unhindered. If a power
station has come up in the vicinity of a particular
block, there is no sense in running it with coal
transported from elsewhere, which will only push
up electricity tariffs. The Centre must also quickly
formulate a clear policy for allocation of coal blocks
through open bidding or any other transparent

system based on consistent and objective norms. This
should be coupled with opening up commercial (as
distinct from captive) coal mining to private players,
both domestic and foreign. India today needs
professional mining companies which can bring the

latest technologies to extract maximum coal at
minimum cost with least environmental damage.
REGULATE DRUGS AND DOCTORS TOO

NPPAs July order capping the prices of 108 antidiabetes and cardiovascular formulations was bound
to be legally challenged. Ironically, even as the
petition filed by the pharma industry against the
NPPAs order was being heard by the Mumbai and
Delhi High Courts, the NPPA altered its position
that it was empowered to regulate the prices of nonessential drugs and stated this change was effected
in compliance with the directions received from
the Government. Equally significant was the timing
of the move just ahead of Prime Minister
Narendra Modis maiden official visit to the US.
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The problem of unethical and anti-competitive

pricing practices by drug-makers, which had
promoted the intervention of the National Pharma
Pricing Authority, is far from resolved. At issue here
is the arbitrary and wide variation in pricing for
different brands of the same underlying molecule.
The wide differential in the prices of branded
formulations of the same underlying drug is clearly
a result of the collusion between large drug
companies and the medical fraternity. While the
Medical Council of Indias Code of Ethics Regulation
2002 mandates doctors to prescribe generics to the
extent possible, it is the expensive branded medicines
that are thrust upon patients in practice. Unlike in
other product markets, the drug consumer isnt in a
position to exercise an informed choice.
In July, the NPPA had imposed restrictions on

the selling price of 108 drug formulations, brands of
which reflected such arbitrary and mystifying price
variations. The problem was that these drugs fell
outside the National List of Essential Medicines
(NLEM) and therefore were outside the purview of
the NPPA. While the law does allow the NPPA to
fix the price of any medicine in the public interest
which extends to even non-NLEM formulations
this power, conferred under para 19 of the Drug
Price Control Order, is exercisable only in
extraordinary circumstances. So much so, the
While using the NPPA to curb anti-competitive

pricing may be a legally grey issue, it is in the
industrys interest to acknowledge the existence and
gravity of the problem. One solution is to regularly
revise the list of drugs under the NLEM in order to
prevent vital drugs from escaping the NPPAs
purview. At the same time, it is imperative that drugmakers voluntarily come out with a code of best
practices with regard to pricing. Also, the insidious
nexus between the drug industry and medical
practitioners needs to be firmly sundered by a
mechanism that includes strict penalties. It is best
that an independent regulatory body be set up to
address these and related issues concerning the drug
industry.
THE RETURN OF THE EAGLE IN WEST ASIA
U.S. President Barack Obama outlined a new

strategy to meet the challenge of the Islamic State
(IS) in Iraq and Syria. In reality, the four-pronged
approach would mean the return of the U.S. to the
Middle East.
At the outset, it is a brave decision for which

Mr. Obama deserves to be congratulated. Only a
few weeks ago did he accept that the U.S. lacked a
policy to deal with IS. Given the larger global
implications and fallout of IS successes, it is
imperative that there is coherent action taken to
neutralise it. Will Mr. Obama succeed in his
objective? There are at least five major challenges to
the U.S. Presidents new strategy.
Relying on air support
There is little doubt that this will be a long-drawn

war. Though public opinion has turned around after
the brutal killing of two journalists by IS, it may
take yet another turn. Also, Mr. Obama, who is now
being provided the necessary support of the U.S.
Congress to arm the Syrian opposition to fight IS
would need this to continue. But there is a larger
debate taking place with the U.S. on the nature and
extent of an American military presence.
There are already differences between Mr.
Obama and his military on the use of ground forces
in Iraq. Mr. Obama wants to rely only on tightly
controlled air strikes whereas the military
[55]
leadership would like to keep the option of engaging

U.S. ground troops open. Military officials who have
served under him have been quoted as saying in an
Intelligence Committee of the House that halfhearted or tentative efforts, or air strikes alone, can
backfire on us and actually strengthen our foes.
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Second, Mr. Obama aims to weaken IS through

a systematic campaign of air strikes. He has
cautiously avoided deploying U.S. ground troops in
Iraq, though he has also announced that American
non-combat service members to support Iraqi and
Kurdish forces with training, intelligence and
equipment would be increased.
Middle East by claiming that the country says one

thing but does the opposite. The inability of Turkey
in not taking action against the use of routes for
transfer of supplies has been a crucial factor in the
growth of IS. Most of the arms and ammunition and
the foreign fighters are believed to have travelled
through Turkey. In the renewed fight against IS,
will Turkey become a major partner, plugging the
routes and sealing the borders? Also for Turkey,
Syrian President Bashar al-Assad is a bigger problem
than IS and it would be hesitant to strengthen the
Kurds to fight IS. Given the regional Cold War and
active interference within, Mr. Obama would find it
difficult to get the region on board and on the same
wavelength to fight IS.
Given the geographic expanse, and the lack of

presence of Iraqi troops, air strikes by the U.S. are
crucial in fighting IS and would also disrupt supply
routes from outside Iraq. But herein lies the primary
challenge for Mr. Obamas strategy of heavily relying
on air support. In the Sunni dominated regions,
where IS has marched on, the local population is
equally apprehensive of the Iraqi Army. IS has
become powerful, not primarily because of Iraqs
military weakness, but rather on account of the
failure of the governance process and the lack of an
inclusive government which provided the space for
IS to grow stronger.
Will the air strikes alone reverse the trend? Mr.
Obama has to ensure that the new Iraqi government
is militarily stronger and politically inclusive. Adding
more American advisers to help the Iraqi security
forces alone will not change the trend. The same Iraqi
forces which disintegrated during the course of this
year were, in fact, trained by American advisers.
Support for the U.S.
Third, Mr. Obama is faced with the task of

bringing the Middle East together. For the first time,
the other states in the region which have been overtly
or covertly supporting the IS are now realising what
has become of it.
Saudi Arabia has already agreed to help the U.S.

to train opposition forces to fight IS. However, though
the regime in Saudi Arabia seems to realise the threat
from IS, have its private donors who have been
supporting the militants also had a change of heart?
And what about Turkey? A section within the
U.S. criticises Turkey, calling it the Pakistan of the
Syria is the fourth challenge. Mr. Obamas decision

to expand the war against IS into Syria is fraught
with dangers. Until recently, Mr. Obama was not keen
on supporting the Free Syrian Army and other forces
opposing both Mr. Assad and IS. In the three-pronged
war within Syria (Mr. Assad, opposition forces and
the IS), Mr. Obama, until recently, was not keen on
supporting the opposition forces in Syria. Until June
this year, he was convinced that the Syrian opposition
is composed of doctors, pharmacists and farmers. Will
Mr. Obama convert them into fighters, strong enough
to fight the brutal IS?
IS has already evolved into one of the richest
militant organisations in the world. According to
reports, it smuggles oil for the areas it controls to
provide to others through intermediaries in Syria
and Turkey, and earns $2-million every day from its
oil production alone. Clearly, closing down such a
network means international and regional
cooperation. This poses the fifth challenge.
Finally, Mr. Obama faces the challenge of
bridging the trust deficit of the local population
regarding the American approach. The U.S. may
have succeeded in neutralising a militant group
through its military might, but that does not mean
the achievement of peace and stability. The general
criticism the U.S. faces is that it leaves countries in
tatters once the regime changes. The Iraqis and the
Afghans would vouch for this fact. This would be
the biggest challenge that Mr. Obama is likely to
leave for the next President.
Source: The Hindu
ETHIOPIAS AGRICULTURE HOTLINE

Ethiopias farmers are flocking to a hotline that
provides free agricultural advice about planting
crops, using fertilizer and preparing land as part of
[56]
a government initiative to turn subsistence farmers

into surplus sellers.
The automated hotline has received nearly 1.5

million calls from more than 300,000 farmers since
it launched 12 weeks ago, according to Khalid
Bomba, CEO of the Agricultural Transformation
Agency (ATA), an internationally backed
government initiative. The 90 lines are now taking
an average of 35,000 calls a day.
Data on callers
More surprising than the governments ability

to use its networks to promote the hotline is the
huge volume of calls from rural areas. This raised
eyebrows because of the unreliability of the state
monopoly provider Ethio Telecom. Even in relatively
developed Addis Ababa, calls often do not go
through or are dropped mid-conversation. And
while mobile-phone penetration is at 69 per cent on
the continent, in Ethiopia it stands at only 27 per
cent,
according
to
the
International
Telecommunications Union.
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Other African countries have used similar

methods to get information to farmers, but Ethiopias
initial success is unparalleled, Mr. Khalid said. The
numbers speak for themselves, he said. Its
working and the farmers are finding it useful. The
advice line is just one of 82 targets on the threeyear-old agencys agenda, which include devising
value chain strategies for each key crop, increasing
the use of higher-yielding seed and making credit
more widely available for the nations approximately
70 million smallholder farmers. One of its most highprofile projects has been a soil-mapping exercise to
understand which areas of the ecologically diverse
country are suitable for particular crops and
fertilizers.
90 million live outside towns and cities. An extensive

political apparatus reaches down to household level,
and according to critics, the regimes cadres often
double as agricultural development agents. The
extension system is driven by political imperatives
aimed at effectively controlling the bulk of the
Ethiopian electorate, said academic Kassahun
Berhanu in a 2012 paper for the Future Agricultures
Consortium, which is partly funded by the
Department for International Development.
ATAs data shows around a quarter of callers to

the hotline have been what are known in Ethiopia
as model farmers or development agents. Both
groups are used by the government to impart
information at the grassroots. The content on the
phoneline is replicating advice offered as part of
Ethiopias Agricultural Extension Programme a
long-standing effort to provide farmers with tutorials
and inputs such as seeds and fertilizers.
One young educator, Shimeles, was brought

to the capital, Addis Ababa, by the ATA to explain
how useful hed been finding the new service, which
is available in three of Ethiopias main languages:
Amharic, Oromo and Tigrinya. He said peoples
enthusiasm surged when they found out it was free
and that it was like watching television as the
information comes to you. The government has
advertised the initiative on national and local radio
but workers like Shimeles are the best promotion
and awareness people, Mr. Khalid said.
Ethiopias government relies on support in rural
areas. About 80 per cent of the population of around
The ATA, which takes a highly technocratic

approach, describes itself as a problem solving
organisation that will help propel Ethiopia to
middle-income status an ambition the government
wants to achieve in the next decade. Unlike most
other government agencies, its staff includes plenty
of foreigners and returning members of the diaspora.
The International Monetary Fund (IMF) has said
Ethiopias economic gains have reduced rural
poverty rather than just enriching an urban elite,
and projected an annual economic growth rate of
about 8 per cent over the coming years.
The ATA was supported by Ethiopias hugely
influential former Prime Minister Meles Zenawi,
who initially directed its work as chairman of an
oversight council. So far, one of the organisations
main successes has been introducing a package for
improved production of the staple cereal, teff, which
saw yields increase by up to 73 per cent last year
compared to the national average.
The ATA works closely with Ethiopias Ministry
of Agriculture and other partners including UNDP,
USAid, the Nike Foundation, the World Bank and
the Rockefeller Foundation.
Source: The Hindu
TIME FOR ACTION ON CLIMATE
Anew report authored by Lord Nicholas Stern

sounds as optimistic as his landmark 2006 study. It
is possible to simultaneously prevent climate change
and to augment economic growth, claims Better
Growth, Better Climate: The New Climate Economy

Report, of the Global Commission on the Economy
and Climate. Allowing fewer emissions would fuel
growth better than the current high-carbon model.
[57]
and cities to weigh the environmental risks and

opportunities of their operations. The financial and
non-financial performance of businesses should
include an assessment of climate risk and resilience
with disclosure to investors and stock exchanges.
National governments should set a 2025 target on
greenhouse gas emissions and a global annual target
of zero or less by the latter half of the century. If
implemented, says the report, the action plan would
achieve 90 per cent reduction in emissions by 2030,
enough to prevent catastrophic climate change. As
shown by several studies, no region is perhaps more
vulnerable to its impact as the countries of South
Asia, home to nearly a quarter of the worlds
population. A recent Asian Development Bank study
warns that many nations in the region would on
average lose 1.8 per cent of their gross domestic
product by 2050 in a business-as-usual scenario. The
damage would be greater when the impact from
extreme weather events is also calculated. As current
targets to cut emissions expire in 2020, the UN
summit being held today is critical to building
momentum for a new climate deal in Paris in 2015.
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For that to happen, governments would have to

redeploy the $90 trillion they are estimated to spend
on infrastructure over the next 15 years towards lowcarbon technologies. One of them is mass public
transport networks that will connect compactly built
cities, saving $3 trillion in investment cost by 2030,
the report points out. Restoring 12 per cent of
degraded lands can feed another 200 million people,
raise farmers income by $40 billion annually and
cut emissions from deforestation. Evidence is
mounting that coal is the biggest killer fuel. The
World Health Organizations finding earlier this year
is the latest. The seven million premature deaths
that occur annually, it says, are directly linked to
exposure to outdoor and indoor air pollution, besides
links between air pollution and cardiovascular
diseases and cancer. The case for urgent change
could not be more clinching. The climate report
proposes phasing out the $600 billion current subsidy
on fossil fuels and raising the $100 billion support
to renewables. The result would be energy efficiency
and poverty reduction.
The Commissions ambitious action plan calls
upon governments, businesses, financial institutions
Source: The Hindu
DATA IN THE SERVICE OF THE POOR
Modern states seldom act arbitrarily.

Scientifically derived data is imperative for the
efficient functioning of the modern welfare state.
Although the role of the state in India has been
declining in the neoliberal context, its responsibility
in taking care of sections of the society who are seen
as weak, vulnerable and marginalised has increased
significantly. Thus, we witness a number of welfare
measures being initiated by several States in the
country. However, a fairly common and disturbing
phenomenon is the large-scale irregularities in the
execution of welfare schemes. The state cannot afford
to remain a bystander when it comes to misuse of
government machinery. Past experience has shown
that governments that made consistent efforts
towards improving governance were duly rewarded
by the electorate.
In the newly formed State of Telangana, the
baggage of poor governance inherited by it at the
time of being carved out of erstwhile Andhra
Pradesh (A.P.)was sought to be addressed by the
Comprehensive Household Survey (CHS). At the
time of assuming office in June, Telangana Chief
Minister K. Chandrasekhar Rao had expressed hope
that the outcome of the survey would help the
government plan better for welfare.
[58]
Unfortunately, the move has been criticised by

sections of the media questioning its intention. They
levelled allegations that the CHS would profile the
population based on their place of origin, stoking
fears among a section of the population in
Hyderabad. The allegations levelled had such
repercussions that even Cabinet Ministers in A.P.
took up the matter with the Centre. However,
undeterred by the negative publicity, the people of
Telangana took the matter in their stride.
Given the increasing importance of the state in
the lives of the poor, and pilferation of state funds
meant for the poor, the importance of data on the
socio-economic status of the population has become
essential to planning of welfare measures. On August
19, Telangana conducted a one-day survey of its
entire population. The decision of the Telangana
government is historic, for no other State in the
recent past has undertaken such a massive survey
exercise. Lakhs of government employees geared up
to the demand within short notice and participated
wholeheartedly in the process of enumeration. The
success of the survey is reflected in the
unprecedented participation reported to be about
98 per cent. The masses greeted the process with
enthusiasm, and both the rural and the urban poor
of cultivable land to every Dalit family. In order to

fulfil this promise, the State wanted to ascertain
information regarding landholding patterns and the
number of eligible families. Telangana had
previously witnessed two rounds of land reforms:
one round of efforts were made when P.V.
Narasimha Rao was Andhra Pradesh Chief Minister
(1971-73); the second round of efforts were made in
order to curb the Naxal movement. These two phases
of land reforms resulted in greater redistribution of
land in Telangana. In contrast, it is said 20 per cent
of the families in a typical coastal Andhra village
hold more than 80 per cent of the land. Data on
land holding not only helps the State in land
distribution but also in learning of the number of
small and marginal farmers. This data may be used
by the department of agriculture to plan for input
subsidies, credit requirements, crop insurance
policies, etc. Data on the sources of irrigation
collected in the survey would help the State in
assessing the usage of electricity for farm irrigation,
and the extent of command area, etc.
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and the middle class identified with it. The

questionnaire used in the survey is designed in a
scientific way to cover all sections of the population
and key socio-economic indicators. It consists of 104
items divided into nine sections to record complete
details of the people, including data on land holding,
occupation, access to education and health services,
the status of disabled, etc. The data aims to provide
the State with the much-needed figures to make a
proper assessment of the magnitude of financial
commitment necessary for social welfare schemes.
Charting a new course
One of the several areas that the survey tried to

address is the controversy over the States fee
reimbursement scheme Financial Assistance for
Students of Telangana which had assumed
political overtones immediately after the decision to
introduce it was announced by the newly formed
State. Owing to lapses in implementation, the fee
reimbursement scheme had become a golden goose
for education entrepreneurs. It is said a number of
engineering colleges have mushroomed over the last
four to five years just to benefit from this scheme
and/or were set up with the funds received from it.
At one stage the scheme deviated from its goal and
became a money spinner for a few. The recourse to
fraudulent means by educational institutions had
reached such a point that some engineering colleges
had started admitting students by way of offering
cash incentives for taking admission into their
colleges. Another problem was that the State had to
identify student beneficiaries with the help of
admission lists provided by the colleges rather than
independently identify students in need of financial
assistance. Aimed at providing data on needy
students, the CHS tried to identify students, their
present level of education, and their economic
background. This data would help the State in not
only supporting the students who took admissions
into colleges across Telangana but also into national
institutions like the IITs and NITs.
One of the biggest challenges faced by the newly
formed State is taking care of its poor senior citizens.
Having announced a hike in the monthly pension
amount for those above 65 years of age to Rs.1,000,
the Telangana government needed to ascertain who
genuinely deserved it. In the midst of reports that
the existing name rolls consisting of beneficiaries
included people as young as 45 years of age, it was
high time that a verification exercise was undertaken.
One of the promises made by the Telangana
Rashtra Samithi was the distribution of three acres
Another important feature of the survey is its

attempt to ascertain the status of artisan castes and
people engaged in these occupations. The economic
restructuring in the post-liberalisation era rendered
many artisan communities and their crafts irrelevant.
However, a significant number of persons belonging
to these communities are still engaged in their
traditional occupations. In this context, the survey
collected important data on the details of peoples
occupations, particularly caste occupations, pursued
by individuals in every household. It is believed
that such data would help the State in evolving
appropriate welfare measures to alleviate economic
problems and help strengthen the communities by
upgrading skills, acquiring new techniques of
production and if possible, link the communities
with appropriate markets so that they can earn
remunerative prices for their produce.
The survey laid emphasis on the health status of
household members. This data would help the State
in knowing the types of ailments, the extent of their
spread and in augmenting State- funded health
centres in rural areas.
Also, data on persons with disabilities would
make it possible for the State to reach out to them
as they have been the worst sufferers in the present
day market conditions. Details on the usage of
cooking gas, income tax assessment, property tax
and drinking water connection, etc. collected as part
of the survey would help the State in urban and
rural drinking water supply, widen the property tax
[59]
net, rationalise subsidies and plan for better civic

amenities in the urban and rural contexts.
Source: The Hindu
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The survey instruments employed by the Census

of India and the National Sample Survey
Organisation often fail to capture the local
specificities embedded in the culture of the region
surveyed. This is because the emphasis is on
evolving a common standard applicable across the
country. Short of such limitations, the instrument
used in the survey by the Telangana government
captures the reality to a great extent.
The survey exercise throws up many

opportunities for administrators, policymakers and
researchers in social sciences since it provides firsthand data which is relevant and appropriate to the
peculiarities of Telangana. The data generated by
the survey can serve as a benchmark for assessing
the progress in subsequent years by various
government departments.
A CASE FOR WHISTLE-BLOWER ANONYMITY
The Supreme Court of India has, thankfully,

decided to reconsider an earlier order calling for
revealing the identity of the whistle-blower while
hearing a petition alleging gross misconduct against
the Director of the countrys foremost police agency,
the Central Bureau of Investigation (CBI). On
September 15, a bench comprising Justices H.L. Dattu
and S.A. Bobde had made an egregious demand on
the petitioner, Centre for Public Interest Litigation
(CPIL) that it would accept an affidavit filed on the
NGOs behalf only if it revealed the source of its
information. Earlier, CPIL had submitted to the court,
among other documents, what it alleged to be the
visitors register to the CBI Director Ranjit Sinhas
residence, exposing several persons accused of
crimes in the 2G-spectrum and coal scam cases
having met him. These meetings, according to the
NGO, showcased the Directors complicity with the
accused, which compromised trials of critical public
importance.
In response to the Supreme Courts original

demand for the name of the whistle-blower, CPIL
filed a fresh affidavit informing the court that it was
loath to revealing the name of its source. Several
whistle-blowers have unfortunately been killed after
their identity was revealed, the affidavit states.
Whats more, along with its new affidavit, CPIL filed
a fresh plea requesting the court to recall its earlier
order. The Bench will now consider CPILs petition,
after hearing the opinion of the Special Public
Prosecutor Anand Grover, when it reconvenes on
October 10.
Why anonymity matters
Any decision from the court on the admissibility

of CPILs plea could have, in the judges own words,
great ramifications. At a time when laws around
the world are being strengthened to encourage
whistle-blowing of corruption at the highest levels,
[60]
it would be grossly pitiable were the court to

disregard CPILs petition purely on the basis of the
NGOs failure to reveal the name of its informant. If
the court persists with its original demand for the
name of the whistle-blower albeit in a sealed cover
as a pre-condition to taking the document on
record, it will only serve to further weaken the state
of whistle-blower protection laws in India,
potentially closing the door on future crusades
against corruption. Unless the anonymity of whistleblowers is preserved and protected, it is likely that
instances of dishonesty by public officials will
become not merely the norm if it isnt already so
but also virtually undetectable.
Anonymity, as John Paul Stevens, a former justice
of the U.S. Supreme Court wrote, by evoking J.S.
Mills On Liberty, in his majority opinion in McIntyre
v. Ohio Elections Commission (1995), can be a shield
from the tyranny of the majority. It can protect
unpopular individuals from retaliation and their
ideas from suppression at the hand of an
intolerant society. No doubt Mr. Stevens views
were expressed in the context of protecting political
speech under the First Amendment of the U.S.
Constitution. But the basis for such right to
anonymity equally applies to whistle-blowers. To
accord them such freedom would provide them a
protection from retaliation. As the affidavit filed by
CPIL informs us, whistle-blowers, whose identities
have been revealed, have often faced the wrath of
the real offenders: Satyendra Dube, S. Manjunath,
Amit Jethwa and Shehla Masood are but a few
informants killed after their identities became public.
The argument against the protection of
anonymity canvassed by Mr. Sinhas counsel, that
the Supreme Court was originally inclined to accept,
is that the identity of the source is integral to a proper
adjudication on the genuineness of the claims, in
this case, the veracity of the logbook. But such a
position is both misconceived and dangerous. As

CPILs affidavit reveals, there are a number of ways
in which the Supreme Court can probe into the
authenticity of the logbook. Just by way of example,
says the NGO, the 23 Indo-Tibetan Border Police
(ITBP) and CBI guards, who were stationed at the
residence of the CBI Director can be examined by
Mr. Grover, and, if they so deem fit, can be crossexamined by Mr. Sinhas lawyers.
Here, CPILs assertion about Mr. Sinhas

complicity with the accused appears to be based on
a visitors register to his residence. The assertion is
admittedly a statement based on information and
belief. But all that CPIL was required to disclose in
its affidavit, and the verifying petition to its affidavit,
in order to maintain consonance with the rules, is
that its statements were based on the logbook; this
is so, because the source of the information that CPIL
has asserted in its affidavit is the logbook by itself,
and not the person who secured the logbook from
Mr. Sinhas residence. In this case, the information
in question is the meetings held by Mr. Sinha with
numerous persons accused of crimes in the 2G
spectrum and coal block cases, and the source of
that information is the visitors logbook. The NGO
is, under law, mandated to disclose no additional
evidence.
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There are numerous other ways in which the

veracity of the logbook can be verified. The CBI is
hardly in need of tutoring on such endeavours. In
numerous instances, the bureau itself has taken pains
to protect the anonymity of its sources, prosecuting
the accused based on confidential information, where
even the complainant has, at times, been kept
unidentified.
statements based on information, the deponent shall

disclose the source of his information, including
official records.
Admissibility of evidence
It might well be the case that the logbook from

Mr. Sinhas residence was obtained through illegal,
or even unethical, means. But the law of evidence in
India, quite contrary to the American position, does
not proscribe the admissibility of evidence illegally
obtained. Indias rules of evidence are modelled on
English law, where courts consistently refuse to
exclude evidence obtained through an illegal search
or seizure. The only test of admissibility is the
relevancy of a document. Although these are
arguments to be made and countered at a subsequent
stage of the proceedings against Mr. Sinha, there
can be little doubt that a register comprising the
names of the visitors to the CBI Directors residence
is relevant in determining his alleged complicity with
the accused in matters of such enormous public
significance.
Whats more, the Supreme Courts original
objection to CPILs affidavit on the basis of Order
IX Rule 13 of the Supreme Court Rules, 2013, appears
not only pedantic but also incorrect. Order IX
comprises the rules of filing an affidavit in the
Supreme Court. Rule 13 specifically states that an
affidavit includes a petition or other document
required to be sworn or verified; and sworn includes
affirmed. In the verification of petitions, pleadings
or other proceedings, statements based on personal
knowledge shall be distinguished from statements
based on information and belief. In the case of
Furthermore, as CPIL has highlighted in its new

affidavit, the Supreme Court in public interest
litigation has often relaxed the rules of procedure
where questions of enormous national significance
are at play. Ensuring a fair, uncompromised trial of
the accused in the 2G spectrum and coal block cases,
given the enormity of the alleged crimes committed,
is of particular public importance. Even if the
document presented to the court by Mr. Bhushan
appears on the face of it to be forged, the court must
allow the petitioner, possibly with the aid of the
special public prosecutor, an opportunity to establish
the veracity of the document independent of an
examination of the whistle-blowers authenticity.
A democracy where the meekest deserve
protection from the majority ought to accord its
whistle-blowers the highest protection, including the
safeguard of anonymity; whistle-blowers, as the
history of other democracies have shown us,
represent a strong check on unbridled government
power. If the shield of anonymity is allowed to
wither, the jurisprudence of our courts will only
serve to encourage the worst forms of governmental
transgression. The attention of the Supreme Court
ought to be on the message, and not the messenger.
Source: The Hindu
UNPRECEDENTED DEMAND FOR FOOD AID, SAYS U.N.

A top official of the World Food Programme
(WFP) has said that it is unprecedented that the U.N.
aid agency finds itself simultaneously responding

to half a dozen major crises in addition to helping
[61]
the largest number of refugees in the world since

the Second World War.
Ertharin Cousin, executive director of WFP, said
in an interview on Monday that the number of
people who need food aid continues to grow and
the demands are overwhelming the donor
community (led by the U.S. which has given the
WFP $1.6 billion) which has been incredibly
generous.
The WFP cant get into areas controlled by the

Islamic State militant group, which controls a large
swathe of eastern Syria and northern and western
Iraq, but the agency has been able to get some food
in through local non-governmental organisations or
the Syrian Red Crescent, though not enough. Local
NGOs tell WFP that they are very concerned,
particularly about minority populations and minority
religious groups, and their access to food and water
and other non-food items, she said.
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Affected areas
Ms. Cousin said in the last two months that the

Syrian government and the Opposition have begun
to respond to WFP requests for more access which
has led to increased aid deliveries across conflict
lines in the country. Humanitarian convoys are also
crossing into Syria through two checkpoints in
Turkey and one in Jordan, as authorised by the U.N.
Security Council, she said.
There are currently four top-level humanitarian

crises (Iraq, Syria, the Central African Republic and
South Sudan) as well as hundreds of thousands of
people caught up in the deadly Ebola outbreak in
West Africa, and more than 50 million refugees,
asylum seekers and internally displaced people
scattered around the world, she said.
Because of funding shortages and increasing

demands from the four crisis countries, refugees,
and countries hit hardest by Ebola, Ms. Cousin said
WFP has been forced to cut some rations and
distributions.
WFP is funded from donations and over 90 per
cent of its budget comes from governments, many
of whom have their own financial and domestic
challenges. So we are imploring them to continue
to dig deep because we live on a very small planet
and we cannot prioritise one hungry child over
another, she said.
Even in Syria, where WFP in August increased

the number of people receiving food to 4.1 million
after working for years to increase access, were
going to need to cut rations to those people were
supporting inside Syria (and) to cut the size of the
vouchers to those Syrians who are refugees outside
Syria, she said.
WFP is currently reaching approximately 8,80,000

people in Iraq and is aiming to reach 1.1 million,
she said, adding that the Iraqi government also needs
to resume operation of its public food distribution
system.
In West Africa, Ms. Cousin said WFP has been
working with the World Health Organization since
March to provide food to those needing medical
treatment for Ebola.
The agency is currently helping 1,85,000 people
and is working to scale up to one million people so
that people in affected areas can be isolated and still
receive food and water, while those people needing
treatment are identified, she added.
The Executive Director also said WFP helped
avert a famine in the Central African Republic and
hopes to avoid one in South Sudan where there has
been no planting season.
Source: The Hindu
WAR AGAINST THE ISLAMIC STATE
What a difference a few weeks can make in West

Asia! Established foreign policy positions, touted as
fundamental principles, have been overturned,
nascent relationships are being reviewed and
restructured, and new alliances put in place, all in
an attempt to cope with this new menace in the
neighbourhood the Islamic State (IS).
The drama unfolded in early August when the

much-vaunted Kurdish peshmerga abandoned Sinjar
and other towns without a fight and retreated to
defend their capital. With Arbil under threat and
thousands of Yazidis displaced and facing genocide,
[62]
the United States returned to the Iraqi battleground

and in a month conducted over a hundred air attacks
on IS forces.
And then began the beheadings: IS placed on
social media the killings of western hostages,
commencing on August 19 with freelance journalist
James Foley, followed by Steven Sotloff, another
journalist, on September 2, and then British aid
worker David Haines on September 13. These grisly
images swung U.S. opinion in favour of an expanded
military role against IS, compelling the U.S. President
Barack Obama to abandon his own principled stand
against a U.S.-led war in West Asia. On September

10, Mr. Obama announced his decision to degrade
and ultimately destroy the terrorist group. The U.S.
then embarked on a diplomatic initiative to once
again build a coalition for war against a chimerical
enemy in Iraq and Syria.
Jeddah and beyond
The military defeat of IS will be a daunting task.

The distinguished commentator, Abdel Bari Atwan,
has pooh-poohed the updated Central Intelligence
Agency (CIA) estimates of 31,500 jihadi fighters in
IS, saying that they are over 1,00,000, and growing.
These include 2,200 Europeans, and another 3,000
Turks. Air power against this powerful force will
not be enough; but, with no U.S. boots on the ground
and no other regional power willing to risk terrestrial
encounters, this is not a feasible option for now.
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The nations allied against the IS scourge met in

Jeddah on September 11. The assembly consisted of
the six Gulf Cooperation Council (GCC) members,
Jordan, Egypt, Lebanon, Turkey, Iraq and the U.S.
The participants (excluding Turkey) agreed to
apportion responsibility thus: (i) the U.S. would
undertake air raids against IS which would go on
from a few months to up to three years; and, (ii) the
GCC countries would fund the conflict, while
providing their airbases and air space. The ground
fighting would be done in two parts: in Iraq, the
Iraqi Army will be rehabilitated, armed and trained
by U.S. advisers and would fight IS forces in
alliance with the Kurdish peshmerga and
moderate Sunnis. In Syria, an armed opposition
of moderate elements would be trained in Saudi
Arabia, Jordan and other Arab capitals.
Front towards the end of 2013. Some western

observers have suggested that the only effective nonjihadi group that can face the IS forces successfully
is the Syrian Army; but, this would go against the
GCCs priority concern regime change.
Turkey said it would not participate in the air

operations. It has two principal interests in Syria:
regime change in Damascus and curbing the
influence of Syrian Kurds who are affiliated with
the PKK in Turkey. Both these interests are served
by a strong IS and other Salafi militia with which it
has had close ties during the Syrian insurgency. For
similar reasons, the GCC countries would be
reluctant to have a high profile ground combat role.
Their concerns are of course more immediate in that
attacks on IS would exacerbate their own exposure
to home-grown jihadi elements.
There is widespread scepticism both about the

rehabilitation of the Iraqi Army. Given that the
Americans had spent over $25 billion in modernising
the Iraqi Army, which had then collapsed before
the IS attacks, it is hardly likely that an effective
professional force can be built up in a few months
time to combat IS.
Concerns relating to Syria are greater. Which are
the moderate Syrian elements the GCC will be
training? It cannot be the Free Syrian Army (FSA)
which has hardly any territory under its control,
has a reputation for corruption and ineptitude, and
whose members frequently join jihadi militia. There
are widespread concerns that the GCC countries may
back the Salafi militia, funded by them for several
years and consolidated into the formidable Islamic
Strategic realignments
The U.S. military role in West Asia has

overturned a number of strategic positions and
alignments that were being shaped just a few months
earlier, when IS had just emerged on the global
scene. First, there had been strident voices
demanding that the West review its policy of
toppling the Syrian regime and instead make it a
partner against IS. This has been firmly rejected by
Saudi Arabia, which now has the U.S. as its partner
in this endeavour.
Second, there are now serious doubts about
Saudi-Iran ties moving in a positive direction. Iranian
Deputy Foreign Minister, Amir Abdollahian, had
visited Riyadh on August 25, when he had discussed
Gaza, Syria and IS with his interlocutors. Observers
had then seen a new awakening in West Asia.
Now, with Saudi Arabia giving priority to regime
change in Syria, this thaw seems to be in some
difficulty. In fact, Irans Supreme Leader Khamenei,
President Rouhani and Foreign Minister Zarif have
all questioned the efficacy of a coalition against
regional terrorism that excludes Iran and Syria.
However, there are reports of discussions between
the U.S. and Iran to shape an Iranian role, with the
latter said to be seeking concessions on the nuclear
issue in return, so far a no-go area for the U.S.
Third, the Jeddah conference marks the renewal
of ties between the U.S. and Saudi Arabia. They had
been estranged since early 2011 when Saudi Arabia
blamed the U.S. for not preventing the fall of Mr.
Hosni Mubarak, and later for the U.S.s failure to
bomb Syria to effect a regime change. Saudi fears
were exacerbated by the bonhomie in U.S.-Iran ties
in the context of the P5+1 talks on the nuclear issue.
Now, Saudi Arabia has seized the opportunity to
pull the U.S. away from the Iranian embrace and, as
[63]
the U.S. prepares for one more battle in West Asia,

assert the primacy of its own interests and regional
perceptions.
Four, Egypt, though critically dependent on the
GCCs political and financial support, is reluctant to
join the coalition, fearing that its principals have
geopolitical interests on their agenda rather than a
comprehensive war on terror. This has encouraged
a nascent rapprochement between Iran and Egypt.
There are also more immediate fears: U.S. attacks

will exacerbate anti-West sentiment across the region,
particularly among the youth, who could move
towards IS and other jihadi groups in droves when
the bombings decimate their families on the ground,
as had occurred earlier in Afghanistan and Iraq.
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However, there can be no stability in West Asia

without a Saudi-Iranian engagement, since Iran has
to work with the Shia regimes in Syria and Iraq to
shape accommodative and inclusive governments,
while the Kingdom has to wean moderate Sunnis
away from the IS coalition and make them part of
the reformed polity. These daunting challenges are
likely to be further complicated by the considerable
support for IS among Gulf Arabs who see it as an
effective force against Shia extremism and increasing
Iranian influence across West Asia.
the coalition of the unwilling; Abdel Bari Atwan

has called it the coalition of the terrified, while a
Turkish paper has referred to it as the coalition of
the unwilling and the apathetic. Most see the war
on IS as a pretext to reconsolidate U.S. hegemony
and note that regardless of the success or failure of
the enterprise, there will only be Arabs fighting
and killing other Arabs and Muslims.
Root causes
The political and military mobilisations against

IS at the Jeddah conference have evoked scepticism
and even scorn from regional commentators. The
Saudi writer, Tareq al-Maeena, has referred to it as
Amid the prospects of more war and carnage,

the regions thinkers search for the root causes of
their malaise and find them in the absence of social
justice, a vigorous public political space and effective
domestic security capabilities. As Rami Khouri has
noted, misgovernance and corruption spawn
extremism but do not provide the states with the
resources to combat it when it grows and expands.
Regardless of the enemies these emerging coalitions
and external interventions confront, the roots of the
Arab malaise lie at home.
Source: The Hindu
DEALING WITH THE COAL BURDEN
The cancellation of all but four of the coal blocks

allocated in an arbitrary manner since 1993, was the
only logical course open to the Supreme Court after
it held the entire process illegal last month. While
corporate India agonises over the development,
which undoubtedly will have far-reaching
consequences, it is also an opportunity to usher in
a fresh, transparent means of apportioning finite
natural resources. For far too long the country has
been beset by a morally compromised system in
which public policy is often overshadowed by
power, influence and connections. Arbitrary, nontransparent and ad hoc processes have eroded public
faith in decision-making. The verdict, similar to the
earlier one that cancelled 122 telecom licences
allotted illegally, is an affirmation of the principle
that the courts will not countenance the undesirable
nexus between public office holders and big
business, or anyone profiting from venality. The
Court was largely encouraged to take the decisive
step of scrapping all the 214 coal block allocations
because the National Democratic Alliance regime
took the unambiguous stand that it is capable of
handling the fallout of such a sweeping measure. It
[64]
has given the government and the functional mines

some breathing time by making the cancellations
operative from March 31, 2015. Six months on, the
public sector Coal India Ltd. will step in to take
over the 40 mines that are functional now and the
six that are on the verge of starting operations. The
Court also wants the ongoing CBI investigations to
continue.
While the verdict is quite sound, some questions
remain. The Court has accepted the governments
claim that it is prepared to face the consequences of
the cancellation of all allocations and move forward.
It has based its order solely on its faith that the
government and Coal India Ltd. have all the
answers. If CIL had the capability to supply the
required quantity of coal of sufficient quality to all
users, the need for captive mining would not have
arisen in the first place. If there is a significant
shortfall in supply after CIL takes over, users may
have to import coal at high cost. While it has
imposed an additional levy of Rs.295 a tonne on the
companies, there is no guidance on the fate of the
loans advanced by banks. If and when an auction is
held to allocate the coal blocks in a fair manner, will
the successful bidders be asked to pay for the amount

spent by the earlier allottees and also take over the
debt owed to banks? The future of end-use projects
that have commenced solely on the expectation that
these blocks would supply the coal needed for their
operation is also not clear. The government will now

have to come up with a plan of action to deal with
the economic fallout of this extraordinary verdict.
Source: The Hindu
A FASTER, CHEAPER MARS ORBITER

mission of Rs.450 crore, for Indians it works out to
be about Rs.4 per person. Today, a bus ride would
cost a lot more.
Indias Mars Orbiter mission has paved the way
for cheaper and faster inter-planetary probes. During
his upcoming U.S. visit, Mr. Modi and U.S. President
Barack Obama are likely to sign a new agreement
for the making of the joint Indo-U.S. Radar Satellite
Mission. China and India recently signed an
agreement on peaceful uses of outer space. So,
many are now wanting to partner in ISROs success.
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India has created global history by becoming the

first Asian nation to reach the Mars orbit in a space
mission. The success is sweeter because this has been
done in its maiden attempt. No other country that
has attempted a mission to Mars has succeeded in
reaching the planet on debut. So, the Indian Space
Research Organisation (ISRO) can claim that it has
done a shade better than accomplished space powers
such as the United States and Russia in reaching
Mars.
Indias Mangalyaan has cost the country Rs.450

crore or about $70 million; it is without doubt the
cheapest inter-planetary mission ever to be
undertaken since Martian exploration began. On
September 22, a mission by NASA called the Mars
Atmosphere and Volatile Evolution (MAVEN), made
at a cost of over $670 million, reached Mars. This
Indian marathon took 300 days to cover a distance
of over 670 million kilometres a sprint really in
a record time of 10 months.
The first official hint that India was undertaking
a mission to Mars came in the budget speech of
2012. Subsequently, Prime Minister Manmohan
Singh formally declared in his Independence Day
speech that year that an Indian mission was heading
to Mars. The mission itself was launched on a balmy
afternoon on November 5, 2013, and the journey
from the Red Fort to the Red Planet has had a dream
run.
On his last visit to ISRO, when he witnessed the
launch of a Polar Satellite Launch Vehicle, Prime
Minister Narendra Modi said Indias Mars orbiter is
a great achievement since it costs less than the
making of the Hollywood blockbuster movie
Gravity which had a tag of $100 million.
An inexpensive mission
Many have questioned why India should be

sending a robotic mission to Mars when there is so
much poverty, malnutrition, death, disaster and
diseases among its 1.2 billon population. Some have
even called this mission as being a part of Indias
delusional dream of becoming a superpower in
the 21st century. There can be nothing farther from
the truth. If one analyses the cost of the Mars Orbiter
The mission, within minutes of reaching Mars,

has already taken its first images of the Martian
surface. The Mars colour camera, which is essentially
an Indian eye to track Mars, will bring back the first
tangible truths to Indian taxpayers that their money
has been well spent.
If the 20th century witnessed a space race
between the U.S. and the USSR, the 21st century is
seeing an Asian space race. In most aspects of space
technology, China is way ahead of India. It has larger
rockets, bigger satellites and several rocket ports. It
even launched its first astronaut in space way back
in 2003 and has a space laboratory in the making.
In 2008, when India undertook its first mission
to moon Chandrayaan-1, China raced ahead and
orbited its Change-1 satellite ahead of India. But in
this Martian marathon, India has reached the finish
line ahead of China. This now puts India in the pole
position as far as Asian Martian exploration goes. In
2012, the first Chinese probe to Mars Yinghuo-1
failed. It was riding atop a Russian satellite called
Phobos-Grunt. But the Chinese probe failed to even
leave earth. Earlier in 1998, a Japanese probe to Mars
ran out of fuel.
Today, Indias Mars orbiter mission has shown
that the Indian elephant has lumbered ahead of the
Chinese red dragon. For the record, ISROs chairman
Dr. K. Radhakrishnan has gone on record by saying,
We are not racing with anybody. We are racing
with ourselves. We have to race to reach the next
level of excellence.
Challenges ahead
Now that India has reached Mars, ISRO has
[65]
Mars is unable to provide electricity to 400 million

citizens. What is worse is that 600 million Indians
still dont have access to toilets. It is hoped that Mr.
Modi would have learnt a lesson or two from the
Indian space agency on how to undertake costeffective projects with no time or cost overruns. If
only Mr. Modi internalises this big learning can his
dream of having Swachh Bharat by 2019 become
a reality.
As ISRO says, the first astronaut could well be

a woman. In a few weeks, an Indian navigation
satellite will be also launched into space. By 2017,
ISRO wants to undertake Indias second mission to
moon Chandrayaan-2 which will have an Indian
lander and a rover. Subsequently, it also wants to
launch dedicated missions to study the Sun and the
planetary bodies in the solar system.
The Orbiter mission undoubtedly tells the world

that India is a space power to reckon with. The more
technology was denied to India, the more
determined it became to master these technologies.
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several other goals and challenges to meet. Coming

up in the next few weeks is the test firing of Indias
monster rocket, the Geosynchronous Satellite Launch
Vehicle Mk III, a rocket capable of carrying heavy
payloads into space. This flight will carry a dummy
crew module, which is part of a programme for the
development of critical technologies that ISRO seeks
to develop as part of its human space flight
programme.
Mr. Modi, in his stirring speech to ISRO, spoke

of its capabilities and efficiencies. It is an eye-opener
that a country which can undertake a mission to
Amid the celebration, if there is one point of

regret, it is that the Mars Orbiter Satellite a truly
nationalistic mission does not carry the Indian
tri-colour or the flag. This is one inexplicable
omission ISRO may regret for a long time to come.
Source: The Hindu
A GLOBAL CALL FOR CLIMATE JUSTICE
More than half a million people marched in

nearly 3,000 simultaneous events conducted across
161 countries as part of the Peoples Climate March
on September 21. They carried placards promoting
alternative sources of energy and chanted slogans
condemning governments for their inaction on
climate change and for mollycoddling global
capitalism. They targeted, in particular, the fossil
fuel industry, which has recklessly promoted the
practice of hydraulic fracturing or fracking and
other carbon-intensive activities. The demonstrations
were to some extent mobilised by the nongovernmental organisation 350.org, along with a
growing global network of organisations, which are
alarmed by the lethargy evident in international
negotiations towards reaching a safe limit for
atmospheric concentration of greenhouse gases.
The scientific consensus is that this should be
around 350 parts per million (ppm) of carbon
dioxide. However, the primary greenhouse gas is
persistent in the atmosphere and has increased its
concentrations by nearly half since pre-industrial
times to reach about 400 ppm.
The demonstrations were timed to coincide with
the U.N. Climate Summit called for by SecretaryGeneral Ban Ki-moon at the U.N. Headquarters in
New York this week. This meeting of world leaders,
heads of states, finance ministers, business heads
and leaders of civil society and community groups
was meant to energise global action to address the
[66]
global warming challenge. Many commitments were

made at the summit separate from the formal
negotiation processes. For instance, countries of the
European Union pledged to reduce emissions to 40
per cent below 1990 levels by 2030. Seventy three
countries and over a thousand businesses and
investors, making up more than half of the global
economy, gave their strong endorsement for pricing
carbon. Many leaders expressed their support for
addressing loss and damage due to climate change
and announced a number of initiatives for building
resilience. India promised to double its use of solar
and wind energy by 2020. A global movement and
mobilisation for action that may have seemed
impossible even a few years ago, appears now to be
gathering force.
Neither Prime Minister Narendra Modi nor
Chinese President Xi Jinping was at the summit,
each citing busy schedules. This is unfortunate,
because as new leaders of countries that make up
nearly a third of the worlds population and are
among the top three annual emitters of greenhouse
gases, the U.N. summit would have been an excellent
opportunity for them to learn and exchange views
with other countries in a relatively informal setting.
It is hard to imagine that either of them could fully
appreciate all the intricacies of the ongoing climate
negotiations under the various negotiating tracks of
the U.N. Framework Convention on Climate Change
(UNFCCC) or indeed the evolving and complex
concerns brought up by climate science. A face-toface meeting with other leaders, on the other hand,
would have been a chance to have genuine concerns
about climate aired out along with an exploration of
synergies involving trade relations, economic
development and conflict and opportunities for their
joint resolution.
Link with capitalist development
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The connections between capitalist development

and the growth of greenhouse gas concentrations in
the atmosphere are very clear. Starting in the 19th
century and intensifying since the 20th century,
industrial capitalism has relied on the mining of
fossil fuels in the form of coal, oil and gas from
under the surface of the earth. Use of these fuels has
resulted in emissions of about half a trillion tonnes
of carbon. Tellingly, the countries with the highest
contributions to global concentrations also have the
highest economic wealth today; similarly, GDP
growth rates for much of the past century have been
synchronous with growth in greenhouse gas
emissions. Some European countries and Japan have
made significant strides to decouple their economies
from energy and carbon growth, but China, now
responsible for producing consumer goods for much
of the world, has shot up in carbon emissions in just
the past decade. Even the U.S., responsible for a
quarter of the cumulative emissions of CO and until
recently the leading annual emitter, has reduced its
emissions from energy in the past five years by about
5 per cent. Today, apart from CO, other contributors
to global warming are also becoming significant,
such as nitrous oxides, black carbon,
hydroflourocarbons and methane, further
complicating the picture.
Several small island states face the prospect of losing

their land entirely, creating a new category of
climate exiles. India too can expect to face more
intense cyclones, flooding, droughts, sea level rise
and variability in the monsoons accompanied by
secondary effects such as destruction of ecosystems
and threats to livelihoods, public health and food
security. Even if emissions are reduced substantially
today, many of these impacts will be felt over time.
An emerging country such as India needs to get serious
about climate compatible development that prioritises
the provision of energy services for the 300 million or
so of its poor. Planning cities, power stations,
agriculture and modes of living that are sustainable
for generations to come is the real challenge. Along
the way, policies should avoid technological and
institutional pathways that lock the economy into highcarbon and unsustainable modes of growth that worsen
inequality rather than reduce it.
Nevertheless, if future climate impacts are to be

reduced to manageable levels, it has become clear
that all countries need to shift their development
pathways such that global emissions peak well
before mid-century. Even this, it appears, may barely
be sufficient to provide a fighting chance for
avoiding a 2 rise in global average temperatures,
which is seen by most scientists as a guardrail
against cascading climate effects.
The impact of climate change has just begun to

make its mark. Its most devastating effects will be
experienced by the poorest in those countries that
have emitted the least. Thus, Bangladesh, responsible
for less than 0.2 per cent of cumulative emissions
will face devastating challenges as a result of sea
level rise, floods and landslides, affecting nearly 120
million of some of the poorest people in the world.
In Paris
Since 1994, when the UNFCCC entered into

force, global negotiations on reducing the threat of
climate change have gone through several twists and
turns, with the discussions themselves becoming
more arcane and complicated. Climate negotiations
have become so complex that only large teams of
lawyers seem to be able to understand their
intricacies.
This weeks summit and future preparatory
meetings over the coming year, including an
agreement on Sustainable Development Goals to
replace the Millennium Development Goals after
2015, are building up to the 21st meeting of the
Conference of Parties (COP-21) of the United Nations
Framework Convention on Climate Change
(UNFCCC) in Paris in late 2015. In Paris,
international negotiators are expected to make
pledges or set targets to reduce emissions so that
global temperatures, which are now moving toward
an increase of more than 4C have a chance of
remaining below the 2C guardrail.
The emerging global citizens movement for
climate justice is a sign of an undercurrent of
gathering impatience towards politically entrenched
interests worldwide that have stalled the movement
to reduce greenhouse gases. If, as most informed
observers believe, climate change really turns out to
be the most important environment and
development challenge of the 21st century, world
leaders, including our own, cannot afford to remain
on the sidelines.
Source: The Hindu
[67]
CONTOURS OF CASTE DISADVANTAGE

the-new-elite theory certainly believes that it has:
the personal enrichment of individual political
leaders, coupled with some rags-to-riches stories are
offered as evidence of this change. However, like
several debates, this one has generated more heat
than light, because these individual stories, dramatic
as they are, do not give any sense of the broader
contours of change in the relative ranking of the
three broad social groups Dalits-Adivasis, OBCs
and Others (everyone else). In the absence of jatispecific data, Others are often taken as a loose
proxy for upper castes, but it should be noted that
the actual disparity between upper and lower castes
would be larger than what is revealed by these broad
data categories. Also, the OBC category in these data
sets is the legal one, i.e. all jatis classified as OBCs,
including dominant castes. Thus, the gaps between
the truly backward OBCs and upper castes would
be larger than what are revealed by aggregate data.
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The rise of Other Backward Classes (OBC) and

Dalit-Adivasi leaders in the political sphere is
celebrated as Indias silent revolution. At the
national level, this phenomenon has been especially
marked since the early 1990s, leading to comments
about the Mandalisation of the Indian polity. The
political ascendancy of individuals from traditionally
marginalised groups has been viewed as a large
enough flux that it is believed to have either
reversed, or certainly flattened, the centuries-old
traditional caste hierarchies. The contemporary caste
system is often represented as one where
horizontally placed entities compete for government
favours and for a space among the elites, often using
the trump card of marginalisation, despite being
powerful, rich and dominant groups within their
local contexts. The pictures vary depending on the
commentator: it is either one of competition between
equals; or one where the upper castes are now the
new marginalised and the so-called lower castes,
especially the OBCs, the new elite. A running theme
underlying these analyses is one that minimises the
actual extent of disadvantage and discrimination,
and celebrates the end of the caste system, or at
least its dehumanising, hierarchical and exploitative
avatar.
Change in political sphere
Indeed, the change in the political sphere is

rather striking, especially in the Hindi belt. Until
the early 1970s, upper caste Members of Parliament
represented more than 50 per cent of North Indian
MPs, compared to 5 per cent for the intermediate
castes and at most 10 per cent for OBCs. In the South
(and also in Maharashtra), due to a combination of
reasons, including a long history of intense social
reform movements, upper castes lost their
predominant position in the political sphere rather
early on. Even though the implementation of the
Mandal Commission report is seen as the turning
point, in actual fact, the share of intermediate castes
and OBCs started rising in 1977. By 1989, upper caste
MPs from Uttar Pradesh fell below 40 per cent for
the first time, and the OBC share was 21 per cent.
The same trend was getting reflected in the State
Assemblies: e.g. in Uttar Pradesh, the share of upper
caste MLAs decreased from 58 per cent in 1962 to
37.7 per cent in 1998.
Has this shift in the social composition of political
leaders led to a corresponding change in material
conditions of broad caste groups? The OBCs-are-
[68]
Material disparities
Along with Rajesh Ramachandran, I have tried

to map the changing contours of caste disadvantage
in India since independence using large-scale
national data. Ideally, the best kind of data to
examine changes over time would be longitudinal
or panel data one that tracks a large set of
individuals over time. However, in the absence of
that, we use National Sample Survey data and divide
the population into birth cohorts, such that the oldest
cohort in our data comprises individuals born
between 1926 and 1935 and the youngest cohort are
those born during 1976-85.
We examine gaps in several indicators
(landholding, urbanisation, years of education,
proportions of those with different levels of
education, various employment indicators, wages
and so forth) across caste groups, between each
cohort, and see if the gaps are increasing or
decreasing across cohorts. Suppose that upper castes
have a higher proportion (than OBCs) of those who
hold elite, white-collar jobs. That indicates disparity
along traditional lines. But if this gap is lower for
younger cohorts than it was for older cohorts, it
would mean that OBCs are catching up with upper
castes in terms of access to this tier of occupation. If,
hypothetically, we were to find that among the
younger cohorts, a greater proportion of OBCs had
access to white-collar jobs than upper castes, it would
suggest that the older hierarchy of access to such
jobs had been overturned, and the OBCs are indeed
the new elite in this dimension. We examined each

of our indicators using this methodology, and heres
what we found.
The overarching picture shows that there are
clear disparities in virtually all indicators of material
well-being, with upper castes at the top, SC-STs at
the bottom and OBCs in between. However, the
picture is not uniform across indicators, and there
are signs of change.
A standard method of estimating discrimination

in the labour market is via decomposition of the
wage gap between two groups. A part of the wage
gap between any two groups can be explained by
the fact that members of one group are likely to be
better educated, more skilled or have other attributes
that command higher wages. However, if the entire
wage gap cannot be explained by these factors, the
residual gap is taken as a proxy for labour market
discrimination. Comparing the oldest cohort born
after independence to the youngest cohort, we find
that average wage gaps between OBCs and upper
castes have been narrowing over the years, but
notably, the discriminatory component is rising. The
gaps between SC-STs and upper castes are larger
than those for OBCs, and the trend is again of rising
discrimination for younger cohorts.
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Education and occupation
true for the cohort born between 1956-1965,

individuals who would have been between 35 and
25 years old in 1990 and hence eligible to take
advantage of the new quotas. This catch up continues
onwards to younger cohorts. We see a similar
convergence between SC-ST and upper castes, which
is in contrast to the picture of divergence between
SC-ST and upper castes in access to white-collar jobs.
We find evidence of convergence between the

three broad groups in literacy and primary education
over successive cohorts. However, in access to higher
education, the groups are growing further apart. The
fact that for education after the primary stage, and
especially for higher education critical to achieving
social mobility, traditional hierarchies have not only
persisted, but widened over the last 50 years is
significant. This suggests that policies targeted
towards closing the gaps at the higher education
levels are not entirely misplaced, as the gaps would
probably have been larger in the absence of such
policies.
In a three way division of all jobs into

agricultural, blue collar and white collar, SC-STs
record the highest proportion in agricultural jobs
consistently for all cohorts, followed by OBCs and
upper castes; whereas for white-collar jobs, upper
castes record the highest proportions for all cohorts,
followed by OBCs and then SC-STs. For blue-collar
jobs, the picture is mixed, in that OBCs record the
highest proportions, followed by upper castes and
then SC-STs. Here, change can be seen in the fact
that younger cohorts among OBCs seem to be closing
the gap vis--vis upper castes in terms of access to
prestigious white-collar jobs, whereas SC-STs
continue to lag behind.
Jobs and discrimination
We find that SC-ST percentages with access to

public sector jobs are consistently higher than those
for OBCs, a trend at variance with access to whitecollar jobs. We believe that the difference in the
relative picture between SC-STs and OBCs reflects
the longer operation of SC-ST quotas. Note, however,
that upper castes as a group continue to have the
highest percentage of public sector jobs across
cohorts.
Here again, the OBCs are catching up, both with
SC-STs and with upper castes. This is most strikingly
Traditional hierarchies persist
Overall, despite significant gaps in all indicators

(consumption expenditure, wages, educational
attainment, occupational attainment and so forth),
we find substantial evidence of catch up between
OBCs and upper castes among younger cohorts
(especially in literacy, primary education, access to
white-collar jobs, wages), but we find continued
divergence in all education categories after the
middle school level. The convergence for SC-STs is
very limited, confined only to literacy and primary
education. However, our disaggregated regional
examination reveals that the association of these
changes with political representation is weak, at best.
That should not be taken to mean that political
representation has not worked or that it is not vital
to achieve an inclusive, and broad-based structure
of governance and decision-making. What the
evidence indicates is that traditional hierarchies are
too deeply entrenched to be reversed through one
single measure; they need a concerted push, backed
by strong will from different segments of society,
including, but not confined to, politicians.
Source: The Hindu
[69]
MARS MISSION SUCCESS

every minute detail for such a complex mission could
be attended to in the course of a project completed
in just one and a half years. Indias Mars effort costs
Rs.460 crore, an economical price tag by Western
standards.
The Indian probe joins four spacecraft already
circling Mars, including Americas MAVEN
(acronym for Mars Atmosphere and Volatile
Evolution) that went into orbit just two days earlier,
as well as two U.S. rovers exploring the planets
surface. The Indian and U.S. space agencies are
holding discussions on possible scientific
collaboration. Success with the Mars Orbiter will give
ISRO the confidence and capability to undertake
more challenging missions. However, if the country
wants to send heavier and more powerful spacecraft
to Mars, it cannot do so with the Polar Satellite
Launch Vehicle (PSLV) that was used for the current
mission. However, the Geosynchronous Satellite
Launch Vehicle (GSLV) equipped with an
indigenous cryogenic stage made its first successful
flight only in January this year, and a few more
flights will be necessary to establish its reliability.
Further improvements to the rocket may also prove
essential. ISRO has achieved much, and more will
be expected of it in the years to come.
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After a journey of over 660 million kilometres

that took 10 months, Indias Mars Orbiter Mission
has swept with effortless ease into orbit around the
Red Planet, making this country the first to achieve
such a feat in a maiden attempt. Probes despatched
to Earths sibling planet over the last half a century
have often run into trouble of one kind or another,
with only less than half of those spacecraft ending
the voyage successfully. Thus far, only the United
States, the former Soviet Union and the European
Space Agency have succeeded in doing so. India
and its space agency, the Indian Space Research
Organisation (ISRO), now proudly join their ranks.
Although ISRO could draw on its experience with
the lunar probe, Chandrayaan-1, launched six years
back, the challenges involved in sending a spacecraft
all the way to Mars are far greater. That includes
propelling the spacecraft with sufficient velocity to
escape Earths gravitational grasp, guiding it along
the proper trajectory over vast distances, and then
slowing it down sufficiently to go into orbit around
that planet. The spacecraft had to be capable of
operating autonomously as communication signals
to and from ground stations could take minutes to
reach it. All of this has gone remarkably smoothly,
including the orbit insertion manoeuvre with the
spacecrafts main engine, which had lain idle for
almost 300 days. It is a tribute to ISRO and the
professionalism of its scientists and engineers that
Source: The Hindu
DANGERS IN DISCLOSURE
That the Supreme Court is now willing to take

another look at its decision calling for the revelation
of the identity of the whistle-blower who handed
over a register of visitors to the residence of the
Director of the Central Bureau of Investigation, Ranjit
Sinha, is in itself welcome. Earlier, citing procedures
laid down for passing on information to be used as
evidence, the Court had wanted the name of the
whistle-blower to be submitted in a sealed cover,
sparking fears this could make the whistle-blower
vulnerable to harm. After the Centre for Public
Interest Litigation, the petitioner in the case, filed
an affidavit refusing to name the whistle-blower on
the grounds that it may put the informant under
serious risk of bodily harm or harassment, the Court
seems to be having a rethink on the correctness of
insisting that the identity be revealed. There are
clearly other effective means of obtaining the
information without the risks involved in revealing
the name of the whistle-blower. In view of the
[70]
serious nature of the allegations against the Director,

who is reported to have frequently met some of the
accused in the 2G spectrum corruption case at his
residence, the Court can look into other material
evidence. With some parts of the material produced
having been confirmed, it can be the basis for the
Court ordering a probe to find out if Mr. Sinha did
indeed meet persons accused in the 2G case, and if
he did, his reasons for doing so. In extremely
sensitive cases, involving persons commanding
power and influence, complainants might be wary
of risking their name being made public. Even the
contents of a sealed cover given to the Court could
be handled by persons other than judges, and there
is no guarantee of secrecy.
The Whistleblowers Protection Act provides
protection to whistle-blowers from harassment, but
not complete anonymity. Under the Act, no action
need be taken on the basis of a complaint if there is
no disclosure of the identity of the complainant.

While the authorities are obliged to conceal the
identity of the complainant making a disclosure in
public interest, the Act does not envisage a system
wherein the complainant can remain completely
anonymous. This might discourage those who want
to make public interest disclosures but do not wish
to be part of the investigative process for whatever
reason. True, there is merit in asking the complainant
to reveal his or her identity so as to avoid the

possibility of the redress system getting bogged
down in processing frivolous complaints made out
of malice. However, exceptions can always be made
in exceptional cases. The supposed visitors register
at Mr. Sinhas residence is one such exceptional
disclosure that would need to be pursued with
utmost seriousness.
Source: The Hindu
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SHOWCASING MAKE IN INDIA

Prime Minister Narendra Modi could not have
asked for a better boost to his Make in India
campaign than this: ratings agency Standard &
Poors (S&P) has revised the outlook on India to
Stable from Negative, while keeping the BBB
rating unchanged. One of the significant reasons
for the upward revision according to S&P was that
the new government has both the willingness and
capacity to implement reforms necessary to restore
some of Indias lost growth potential. This is exactly
what Mr. Modi appears eager to convey through his
Make in India campaign, launched to a packed
audience in New Delhis Vigyan Bhavan on
Thursday. The fact that the top brass of Corporate
India appeared to be in full attendance at the launch
showed the seriousness with which the campaign
has been received. Mr. Modi struck all the right
notes, pointing out how Indian companies were
forced to consider investing outside the country due
to policy flip-flops and delays in clearances. In that
sense, his FDI First Develop India was a signal
to companies that his government would create an
enabling environment for investment, which he
expected they would reciprocate by committing their
energies and investments to the country. It is also
significant that he thought it fit to point out Indias
low ranking as regards the ease of doing business,
assuring investors thereby that he was sensitising
the bureaucracy to get its act together on this critical
point. The jury will be out on this issue, going by

the experience of the collapse of similar efforts to
untangle red tape.
It is interesting to note that the Prime Minister
did not dangle incentives to attract investors, a
practice that has been in vogue until now. His
promise to create a business-friendly environment
is probably more appropriate in todays context of
fiscal prudence. Indeed, S&P has referred to the fiscal
constraints in terms of the high subsidy burden on
the government, observing that successive
governments have been unable to either increase
the revenue base or curb expenditure. The
remarkable turnaround in the external finances of
the country with the current account deficit at a low
of 1.8 per cent has obviously been an important
factor, along with political stability, for S&Ps outlook
revision. That said, it would be wrong to be
complacent on this issue and assume that the job
has been done. If anything, with the growth impulse
returning and the prospect of investments picking
up, the current account deficit could widen in the
months ahead. It is indeed imperative that the
governments actions should match its words. For
now, certainly, there is fresh wind in Mr. Modis
sails as he prepares to address the CEOs of top
American multinationals in New York on Monday.
Source: The Hindu
THE GREAT STAGNATION AND THE G-20
Since 2010, annual growth in both advanced

economies (AEs) and emerging markets and
developing economies (EMDEs) has fallen serially.
It is far from clear whether it has bottomed out as
the International Monetary Funds (IMFs) current
projections, notorious for subsequent downward
revisions, for 2014 indicate. In 2013, AEs grew at
less than 50% of the 15-year average up to 2007.
EMDEs grew at 4.6%, or at around the 10-year preboom average of 1994-2003. It is important to
remember that the sustainability of even this tepid

recovery is untested, based as it is on extraordinary
fiscal, and especially monetary, life support. All
major economic zones of the global economy are
struggling. What seems like a robust revival in one
quarter quickly yields to gloom in the next.
Abenomics is struggling in Japan as the crucial
third arrow of promised bold structural reforms is
still to fire; the euro zone is struggling as major
economic and financial fault lines deriving from an
[71]
fiscal headwinds emanating from demographic

transition prior to the crisis have only picked up
speed with lower growth and the strong fiscal
response to combat the crisis. Fifth, high levels of
leverage in the economy have not unwound, as the
accelerated build up in public debt has countervailed
private sector deleveraging. Sixth, it is not clear that
regulatory reform has made financial markets less
risky, as Basel III retains pro-cyclicality through
retention of the mark-to-market mechanism, and as
shadow-banking, the source of financial instability
in the GFC, has rebounded at the expense of the
more tightly regulated component.
CH
IA R
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AC NI
C
AD L
E
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Y
unstable monetary union have been bared by

markets; the US and China, the relatively strong
nodes of the global economy, need major structural
changes to rebalance their economies, externally and
domesticallyUS needs to save more, and become
more competitive, and China needs to expand
domestic demandfor a sustainable recovery; the
serial growth decline in EMEs has still to bottom
out, even as the Fedexit and interest rate pivot
hang like the proverbial sword of Damocles
overhead. The economic boom of 2004-07 preceding
the global financial crisis was mostly an EMDE
phenomenon. They grew at an average of 7.9%,
pushing global growth upward of 5% compared to
the 1994-2003 average of 3.5% in what came to be
described as the Great Moderation.
AEs continued to grow just below 3% during

this entire period. This boom was unsustainable as
it was not driven by investment and income growth
in AEs but by leveraged consumption, as both real
wages and jobs growth remained stagnant. This
consumption growth was facilitated by easy
monetary policies, financialization and outsourced
production to EMDEs where large productivity shifts
were taking place. This put downward pressures on
consumer prices, led to mounting external
imbalances and a savings glut as consumption
growth in EMDEs did not rise commensurately. This
model of growth collapsed with the global financial
crisis (GFC). The contours of new engines of growth
are still unclear. Meanwhile, several of the infirmities
of the Great Moderation have not only re-surfaced
but may have actually intensified. First, the global
savings glut has been compounded after the crisis
by extra-accommodative monetary policies which,
as before, are fuelling asset rather than investment
booms.
Second, with asset prices unusually buoyant
considering the depressed state of the economy, the
disconnect between asset and consumer prices is
now compounded by the disconnect between
economic growth and financial markets. Third,
stagnant real wages and jobless growth, in
particular falling labour participation rates, continue
to depress consumer demand in advanced
economies. The resultant growing inequality has
only been compounded by ultra-easy monetary
policy that rewards asset owners over savers. Fourth,
Seventh, the structural flaws in the European

Monetary Union that were always latent have now
been uncovered by markets that can now be expected
to revolt periodically, keeping the union in a constant
state of instability. Eighth, the external demand
rebalancing problem is now been compounded by
the need for internal rebalancing of economies from
public to private demand. The common theme
running through all these impediments to growth
in major economic zones is the need for far reaching
structural reforms. Thus far policymakers have
mostly let macroeconomic policies, especially
monetary, do the heavy lifting. But macroeconomic
policies can only fix cyclical downturns and not
structural impediments to growth. The G-20, which
famously coordinated the rescue from the global
financial crisis, is now attempting to coordinate and
nudge countries to carry through difficult structural
reforms to drive up global growth.
This Brisbane Action Plan is expected to be
the centrepiece of the Leaders Declaration at the
forthcoming ninth G-20 Summit in mid-November
2014. But such reforms are ultimately dependent on
domestic political appetite rather than on nonbinding commitments in plurilateral fora. The
appetite for deep-seated land, labour and product
market reforms seems to be by and large weak
currently, as democracies will try everything else
first, and lower growth alone may not spur them
into animated action. Therefore, until a dynamic new
engine of growth emerges the global economy,
including emerging markets, may well be headed
for a Great Stagnation in sharp contrast to the
recent Great Moderation.
Source: Live Mint
DEALING WITH CHINA FIRMLY

Ever since Prime Minister Narendra Modi took
office, paeans have been sung about how India will
finally rise to its destined preeminence. The reason?
[72]
The so-called sluggish United Progressive Alliance

government, having been dealt a historic drubbing,
was replaced by a supposedly strong and decisive
National Democratic Alliance government, which

would make India a force to be reckoned with. The
events of the past week have, however, come as a
rude reality check to many of the ruling
dispensations cheerleaders. Inviting South Asian
Association for Regional Cooperation leaders for the
Prime Ministers swearing-in ceremony and Modis
successful visits to Bhutan, Nepal, and thence to the
much strategically and economically significant
Japan was indeed a promising start.
CH
IA R
S O
AC NI
C
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The simple truth, however, is that hardcore

national interests distinctly transcend personal
relationships, symbolism and hospitality, in the
pursuit of foreign relations. Chinese President Xi
Jinpings recent visit to India, widely expected to be
a historic breakthrough and nothing short of a gamechanger, has turned out, by all standards, to be a
damp squib. That the most wily practitioners of
realpolitik in the world, the Chinese, delivered a
not to so subtle insult to India and its over-hospitable
Indian hosts, led by Modi himself, will be a lesson
which the new Indian government would learn,
thankfully, early enough in its tenure. China, to my
nave soldierly mind, has snubbed us by offering a
mere $20 billion in investment in India spread over
five years and what appalls me more is why we
have accepted this dole. In fact we should perhaps
have offered a trifle more instead to invest in China.
While Modi was personally and graciously taking
his Chinese guest around Mahatma Gandhis home
in Sabarmati in his home state of Gujarat, and
probably expounding Gandhis ideals of humanism
and non-violence to President Xi, what exactly were
the Chinese doing at that time? Hordes of Chinese
soldiers were hurtling down the disputed areas in
the Aksai Chin region deep in Ladakhs Demchok
and Chumar. That the Line of Actual Control (LAC)
has remained undelineated for decades is by itself a
Chinese ploy in its ever expansionist designs directed
against India, be it in the Aksai Chin region or our
Arunachal Pradesh, which they claim and arrogantly
call Southern Tibet.
remembering in this context. Let me add here,

uninfluenced by any nationalistic jingoism or empty
bravado, that the Indian Army just has to be steadfast
in dealing with the Chinese, who, in reality, do not
have much stomach for actual fighting. Even if a
few firefights result, we should take it in our stride.
The Indian Army should immediately replace the
Indo-Tibetan Border Police, which has been manning
the border posts as a permanent measure, and carry
out aggressive patrolling till what we perceive is
the LAC. We have done it in the past. Intrusions
along the LAC must be left to the divisional
commander in eastern Ladakh to handle, in keeping
with standard operating procedures, and a few
minor scuffles between the Chinese and us
considered part of the game. But at no time should
the wily Chinese get away with their machinations.
The fact that they annexed Tibet by force in the

early 50s and that their atrocities in Tibet caused the
Dalai Lama to flee to India in 1959 is worth
All new governments do herald promise to

deliver, both internally and in their relations with
other nations, irrespective of the tenuous relations
that may have existed between them before. Thus,
Modi has endeavoured to bring about improvements
in Indias external linkages, even in our vexed
relationship with Pakistan and China. But if Indias
efforts for normalization with these two nations do
not bear fruit and the two continue on a path which
is inimical to Indian interestsso be it. Trade and
economic ties, undoubtedly important, cannot
compensate for political and sovereignty disputes
remaining unresolved with India alone bearing the
brunt. Let us also shun getting carried away by
empty rhetoric heaped on India by visiting
dignitaries who know of the Indian weakness of
getting carried away by mere praise. A strong,
militarily well-prepared India embellished with a
marked economic resurgence has to be pursued with
all our genius and resources. Let us put into practice
our ancient Chanakya wisdom in governance and
statecraft and shun our inborn Hindu reactiveness
in strategic matters. Let the new dispensation in
Delhi walk the talk and show to the world that while
India is for peace and is concerned about humanity,
it is still fully prepared to fight and triumph for its
ideals.
Source: Live Mint
THE RIGHT DIRECTION FOR SCOTLAND
If 200,000 voters, or 5% of the electorate had

switched their mind and voted Yes rather than
no, the UK would have been no more after the
Scottish referendum on 18 September. The long
dismantling of the British Empire would be at an
end, a process that began with Indian Independence
in 1947. To add irony, Scots often played pivotal

roles in the establishment and running of that Empire
on which, for a while, the sun never set. Not just the
residents of Kolkata will know of Duff College and
the Roxburgh Building. Those of us who grew up in
former colonies might have had some sympathy for
[73]
a proud people with a strong identity demanding

self-determination and independence from London.
One of the most famous British prime ministers,

Sir William Gladstone was a Scot. Assuming no
discrimination, being part of a larger stage grants
you more opportunities for greater influence. More
diversity also fertilizes artistic and scientific
discovery. On the other hand, reducing people to a
single identity often breeds violence. Racism,
sectarianism and religious fanaticism are driven by
ignorance and insularity that is less easily found in
diverse countries. Huffington Post recently published
a review by my brother, an eminent British
psychiatrist, on some fascinating research on the
negative economic effects of the kind of solitarist
pride that separatists play upon. The research by
Pelle Ahlerup and Gustav Hansson, published in
the Journal of Comparative Economics found a Ushaped relationship between local nationalism and
government effectiveness.
CH
IA R
S O
AC NI
C
AD L
E
EM
Y
The sympathy would have grown with the

imperiousness of the no campaign. Its essential
message was that the Scots would not be able to run
their own affairs and needed the English. Despite
that, the Scots made the right decision and one that
has resonance for separatist causes in countries such
as Spain, Italy, Canada and India. According to the
no campaign, the reason for Britain to stick together
was because not to do so would be very risky for
Scotlands currency, pension, banking and trade
arrangements. It was not an entirely emotionless,
negative, appeal. When the race had tightened, Prime
Minister David Cameron told us in his best plummy,
southern accentdespite possessing a Scottish
surnamethat he would be heart-broken if Scotland
left the UK. That may possibly not have had the
desired effect. But the no campaign won, even if it
was for all the wrong reasons.
and writers and are not under-represented in

national honours. Since 1900, there have been three
times as many Scottish prime ministers of Britain
than their share of the population would warrant,
including Ramsay Macdonald, Bonar Law, Arthur
Balfour and Gordon Brown.
There are over 80 countries in the world with a

population of Scotlands or less and many of them
are very successful. Denmark is reportedly one of
the happiest countries in the world. Many, such as
Singapore and Luxembourg are some of the
wealthiest. It is true many of the most successful
such as Norway, Qatar and Kuwait are oil-rich, but
then so is Scotland. Most of them use another
countrys currency as Scotland proposed to do, or
have an irrevocable fix with one. Many can boast
better funded pension funds than most large
countries and more solid banks and they have
prospered by being competitive and globally
integrated. Economic success is not the preserve of
the large. Lee Kuan Yew was able to turn Singapore,
which on secession from Malaysia in 1965 was one
of the poorest countries in the world to one of the
richest was because small countries can also be more
nimble and easier to transform.
The no campaign was based on invoking fears

that were not supported by evidence around the
world. One of the reasons why the no campaign
took this route is that the real reasons not to secede
are more complicated and subtle. The starting point
of course is that unlike British rule a 100 years ago,
the Scots are not oppressed subjects, discriminated
against, exploited and denied equal opportunities.
Public expenditure per capita in Scotland shows
signs of the opposite. Scots excel in all British
activities from architects and economists to scientists
[74]
Nationalism is a positive force for government

effectiveness at low levels. The researchers postulate
that this is because it supports cooperation and
cohesion amongst citizens. But nationalism
transforms into a malign influence at higher levels.
Excessive nationalism leads to resistance to new
ideas from abroad, increased protectionism and
insufficient scrutiny of state agencies. It is interesting
that the countries in which local populations are
least jingoistic are the economic and exporting
powerhouses of Germany, Taiwan, Japan and the
Netherlands. Countries with the greatest jingoism
today are Egypt, Venezuela, Morocco and Iran where
economic troubles are mounting.
The parcelling up of people into solitarist
identities is a force for ignorance and intolerance. In
its mildest form, it leads to economic inefficiency.
In its strongest form, as we see too often in the
Middle East, it is a violent force. There is value in
defeating separatism, especially if it is done by
working hard to support the equality of opportunity
for all citizens, irrespective of their geography,
region, religion, caste, class, colour, gender or any
other dividing force.
Source: Live Mint
LESSONS FROM INDIAS COTTON BOOM

that clearly show lower costs and higher incomes
after adoption of the technology have been
discredited as paid research in this narrative.
Research that exposes claims of the activist set are
conveniently ignored. Stories about cattle dying after
ingesting Bt cotton leaves continue to be circulated
and to find credence, years after they have been
debunked through careful tests. Worse, such myths
also find pride of place in official reports such as
the 2012 parliamentary standing committee report
on GM crops. According to Cornell University
political scientist Ronald Herringwho has researched
the politics of anti-GM groups, careful Internet
management strategies allow anti-GM myths to be
propagated far more effectively than the findings of
well-researched studies on GM crops. The weight of
the organic lobby behind the activist groups provides
heft to such campaigns, allowing such myths to
dominate the popular discourse on GM crops.
CH
IA R
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AC NI
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Indias cotton economy has undergone a radical

and unheralded transformation over the past decade.
From being a net importer of cotton 10 years ago,
India is set to become the worlds largest cotton
producer, surpassing China this year, according to
recent projections of the US Department of
Agriculture (USDA). Cotton production in the
country has more than doubled over the past decade,
and the surge, led both by rising yields and increased
acreage, has lifted farm incomes and profits for
millions of farmers living in some of the most
resource-poor parts of the country.
There are few crops in which India has achieved

such a turnaround in so short a time, and the cotton
boom offers important lessons for the future of
agriculture in the country. There have been two key
drivers of the cotton boom: improved water
management in Gujarat, the leading cottonproducing state, and the introduction of genetically
modified (GM) cotton, which has boosted yields and
profits of growers. The success story of water
harvesting and micro-irrigation projects in the dry
regions of Gujarat is well-known. What is less widely
acknowledged is the role of Indias first and only
genetically modified crop, Bt (Bacillus thuringiensis)
cotton in driving the cotton boom, by preventing
pest attacks, reducing costs and making cotton
farming more remunerative than earlier. The
dominant narrative on GM crops in India has been
shaped by a small band of activists, who have
deemed such crops to be unsafe and unsuitable for
Indian farmers, disregarding reams of evidence
which contradict their claims.
An overwhelming majority of cotton growers
have made their choice clear over the past decade:
they prefer Bt cotton to any other alternative. But
the activists have managed to persuade the world
that Indian cultivators are a gullible lot, who have
embraced the technology without any rational
calculations about safety or profits. Research studies
India is not unique in disregarding the weight

of scientific evidence on GM crops. But India may
have to pay a much steeper price than other countries
for its regressive policies inhibiting the testing and
use of GM crops, given the dire agrarian situation
the country faces. Indias farm sector today is in
crying need for technological fixes to boost farm
output and to make farms resistant to the vagaries
of weather. Rather than blindly opposing GM crops,
India needs to be open to all agricultural innovations.
Indian policymakers must focus on building a
credible regulatory mechanism for bio-safety but
once a technology is approved as safe by a credible
scientific authority, there should not be further
roadblocks either by politicians or courts. As in the
case of cotton, the question of economic viability of
any new crop variety should be left to the farmers
to decide. Ultimately, the farming community has a
far greater stake in these matters than either activists
or bureaucrats.
Source: Live Mint
CLIMATE CHANGE: BURNING DOWN THE HOUSE
What does it take to generate a global response

to a global threat? The financial crisis of 2008 and
the threats from insurgency and terrorism in 2014
are seen as clear and present dangers to one and
alland both have drawn a global response.
Meanwhile, climate change, and the devastating
effects of carbon-dioxide emissions, pose greater and
longer-term threats, and yet have elicited only a
feeble response from the global community for the

past 30 years. In New York this week, United Nations
secretary-general Ban Ki-moon has convened a
summit of world leaders to address this global
phenomenon, which urgently requires collective
intervention. The world has played politics with
climate change for long enough. Immediate electoral
or economic imperatives will never alter the fact
[75]
that global warming will be as damaging for the

rich world as it already is for the poor.
Current funding levels will not suffice. I sat on

the UN High-Level Advisory Group on Climate
Change Finance, which concluded in 2010 that we
could mobilize $100 billion annually by imposing
an agreed levy per ton of CO2 emitted. Thus far, the
world has not displayed the political will to do that.
Third, world leaders should vow to remove all
obstacles to a legally binding universal agreement
at the global climate conference in Paris in December
2015. And when that agreement is reached, it must
be rigorously implemented. A fixed penalty price
for non-compliance will send the right signal of the
worlds collective recognition that our economic
future is inextricably linked with our environmental
future. Finally, we need a specific commitment from
African leaders to create the right climate to attract
private-sector support for green development.
CH
IA R
S O
AC NI
C
AD L
E
EM
Y
The world has flagrantly failed in its response

to the 2005 Kyoto Protocol: Today, we emit more
greenhouse gases than at any point in history. We
know that we need to keep global warming below
2C to avoid a planetary catastrophe, and yet the
Intergovernmental Panel on Climate Change
informed us last year that we are on course for a
3.7-4.8C rise in average global temperature by the
end of the century. No region of the world is immune
to the impact of CO2 emissions. The World
Meteorological Organization has recorded more than
8,000 weather, climate, and water-related disasters
worldwide since 1970, costing nearly two million
lives and some $2.4 trillion. A third of these cases
were in Africa, accounting for almost 700,000 lives
and economic damage of about $27 billion. In 2012
alone, the continent experienced 99 extreme weather
events, which is double the long-term average.
Twenty per cent more Africans will be at risk of
hunger in 2050 due to a changing climate.
greenhouse-gas emitters, despite having abundant

natural resources that can be developed sustainably
and with a minimal carbon footprint. Second, we
need a global agreement on a mechanism to raise
and channel sufficient and predictable financial
support and to accelerate technology transfer to
developing countries, especially in Africa.
The costs of adapting to climate change are also

high: an estimated $45-$50 billion per year by the
2040s, and $350 billion per year by the 2070s. If Africa
fails to find the money to finance adaptation, the
total damage could amount to 7% of Africas gross
domestic product (GDP) by the end of this century.
At the very least, we need the UN meeting to
produce four outcomes. The first is a global
commitment to cut greenhouse-gas emissions
through smart, efficient fiscal and economic policies
and regulationincluding carbon pricing, reduced
fossil-fuel subsidies, incentives, and performance
standards. This would not only help to fight climate
change, but would also benefit growth,
competitiveness, and job creation. This is particularly
true in Africa, where some countries, are on an
alarming trajectory toward becoming major
The most forward-thinking private investors are

already searching for any green investment that
offers a reasonable yield. Africa must make such
opportunities easier to find, by consistently
implementing good environmental policies;
establishing national green growth road maps;
devising innovative financing vehicles to minimize
risk; and lowering transaction costs. World leaders
must act on all global challenges when they
recognize them. Preventing bank failures and
stopping terrorist attacks are important goals; unless
we get serious about addressing climate change, we
are likely to have more of both.
Source: Live Mint
THE RIGHT DIRECTION FOR SCOTLAND
If 200,000 voters, or 5% of the electorate had

switched their mind and voted Yes rather than
no, the UK would have been no more after the
Scottish referendum on 18 September. The long
dismantling of the British Empire would be at an
end, a process that began with Indian Independence
in 1947. To add irony, Scots often played pivotal
roles in the establishment and running of that Empire
on which, for a while, the sun never set. Not just the
residents of Kolkata will know of Duff College and
the Roxburgh Building. Those of us who grew up in
[76]
former colonies might have had some sympathy for

a proud people with a strong identity demanding
self-determination and independence from London.
The sympathy would have grown with the
imperiousness of the no campaign. Its essential
message was that the Scots would not be able to run
their own affairs and needed the English.
Despite that, the Scots made the right decision
and one that has resonance for separatist causes in
countries such as Spain, Italy, Canada and India.
According to the no campaign, the reason for Britain
to stick together was because not to do so would be

very risky for Scotlands currency, pension, banking
and trade arrangements. It was not an entirely
emotionless, negative, appeal. When the race had
tightened, Prime Minister David Cameron told us
in his best plummy, southern accentdespite
possessing a Scottish surnamethat he would be
heart-broken if Scotland left the UK. That may
possibly not have had the desired effect. But the no
campaign won, even if it was for all the wrong
reasons.
CH
IA R
S O
AC NI
C
AD L
E
EM
Y
There are over 80 countries in the world with a

population of Scotlands or less and many of them
are very successful. Denmark is reportedly one of
the happiest countries in the world. Many, such as
Singapore and Luxembourg are some of the
wealthiest. It is true many of the most successful
such as Norway, Qatar and Kuwait are oil-rich, but
then so is Scotland. Most of them use another
countrys currency as Scotland proposed to do, or
have an irrevocable fix with one. Many can boast
better funded pension funds than most large
countries and more solid banks and they have
prospered by being competitive and globally
integrated. Economic success is not the preserve of
the large. Lee Kuan Yew was able to turn Singapore,
which on secession from Malaysia in 1965 was one
of the poorest countries in the world to one of the
richest was because small countries can also be more
nimble and easier to transform.
including Ramsay Macdonald, Bonar Law, Arthur

Balfour and Gordon Brown. One of the most famous
British prime ministers, Sir William Gladstone was
a Scot. Assuming no discrimination, being part of a
larger stage grants you more opportunities for
greater influence. More diversity also fertilizes
artistic and scientific discovery. On the other hand,
reducing people to a single identity often breeds
violence. Racism, sectarianism and religious
fanaticism are driven by ignorance and insularity
that is less easily found in diverse countries.
Huffington Post recently published a review by my
brother, an eminent British psychiatrist, on some
fascinating research on the negative economic effects
of the kind of solitarist pride that separatists play
upon.
The no campaign was based on invoking fears

that were not supported by evidence around the
world. One of the reasons why the no campaign
took this route is that the real reasons not to secede
are more complicated and subtle. The starting point
of course is that unlike British rule a 100 years ago,
the Scots are not oppressed subjects, discriminated
against, exploited and denied equal opportunities.
Public expenditure per capita in Scotland shows
signs of the opposite. Scots excel in all British
activities from architects and economists to scientists
and writers and are not under-represented in
national honours. Since 1900, there have been three
times as many Scottish prime ministers of Britain
than their share of the population would warrant,
The research by Pelle Ahlerup and Gustav

Hansson, published in the Journal of Comparative
Economics found a U-shaped relationship between
local nationalism and government effectiveness.
Nationalism is a positive force for government
effectiveness at low levels. The researchers postulate
that this is because it supports cooperation and
cohesion amongst citizens. But nationalism
transforms into a malign influence at higher levels.
Excessive nationalism leads to resistance to new
ideas from abroad, increased protectionism and
insufficient scrutiny of state agencies. It is interesting
that the countries in which local populations are
least jingoistic are the economic and exporting
powerhouses of Germany, Taiwan, Japan and the
Netherlands. Countries with the greatest jingoism
today are Egypt, Venezuela, Morocco and Iran where
economic troubles are mounting. The parcelling up
of people into solitarist identities is a force for
ignorance and intolerance. In its mildest form, it
leads to economic inefficiency. In its strongest form,
as we see too often in the Middle East, it is a violent
force. There is value in defeating separatism,
especially if it is done by working hard to support
the equality of opportunity for all citizens,
irrespective of their geography, region, religion,
caste, class, colour, gender or any other dividing
force.
Source: Live Mint
[77]

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CHRONICLE

A CIVIL SERVICES CHRONICLE INITIATIVE

8TH SEPT, 2014 TO 14TH SEPT, 2014

Call: 9953120676, 9582263947

National ...................................................................................................................... 4-10

The children the PM couldnt speak to ---------------------------------------------------- 26

Weekly Current Affairs 8th Sept. to 14th Sept., 2014

A new engagement ----------------------------------------------------------------------------- 44

Growth and investment: The interlinks --------------------------------------------------- 50

Weekly Current Affairs 8th Sept. to 14th Sept., 2014

The words from amongst the list of persons

The change in the rules is now expected to pave

The government has also reduced the

of short-listing of persons, adopt such norms

The new rules include:

According to the new rules, the Centre would

The panel would now consist of at least seven

The search committee may, for the purpose

GREEN MANTRA FOR A NEW ENVIRONMENTAL REGIME

The new government has prepared to usher in

pollution standards. This may be radically different

PMO & SAI CLEAR NAMES FOR ASIAD

government. The athletes participation in the event

19 to October 4. The Prime Minister Office in

The government has decided not to allow

The PMO added the disciplines of football (both

triathlon, bowling, baseball and fencing. Prominent

BASTAR TO GET NATIONAL TRIBAL UNIVERSITY

In order to facilitate research and development

It is expected that the university will greatly

GOVT RAISES OBJECTION IN EMPOWERING THIRD GENDER

Over its stand on the LGBT community, the

resisted the direction to classify all transgenders as

The judgment had directed the government to

Another serious objection flagged by the

The governments application, settled by

The Centre has refused to accept such a wide

The Government has asked the court to issue

Bihar cabinet has given nod to recognise

The government has also proposed a clear-cut

Bihar cabinet recognizes the third gender

SUPREME COURT CLEARS 3% QUOTAS FOR DISABLED

In order to empower the differently-abled, the

quota for differently-abled people. The bench

As per the bench headed by Chief Justice R M

According to the Additional Solicitor General

Giving a level-playing field to more than four

The three per cent reservation, as clarified by

Weekly Current Affairs 8th Sept. to 14th Sept., 2014

NATIONAL ROAD TRANSPORT AUTHORITY

India has been grappling to reduce the fatality

The draft aims at providing a scientifically

According to the draft, in first five years of its

Driving an uninsured vehicle Two-wheelers :

Causing death of a child: Rs 300,000 fine, and

While this agency will be accountable to the

The new draft also proposes that the National

PACT ON GREEN BUILDING

To advance green building movement in the

Indian Green Building Council (IGBC) and

Conditioning Engineers (ISHRAE) have inked a

The Indian Green Building Council has

healthy and offer comfort to residents.

Any building that demands less energy, causes