EPW January

KI
IW
EPW January
KI
IW
Content
Maoist Defeat in Nepal The Price of a Missed Opportunity
Rightward Drift in Nepal
Bangladesh's Predicament
Avoidable Mess
From Movement to Government
Disabled by Lack of Political Will
Poverty-Hunger Divergence in India
FDI in India - Ideas, Interests and Institutional Changes
Climate Change, Uttarakhand, and the World Bank's Message
Rescue Package for Power Discoms
10
Crass Decision
12
Parliament, State Legislature and Bifurcation
12
The IPCC's 'Summary for Policymakers'
14
Evolving a New Internet Governance Paradigm
18
Misplaced Optimism on a New Regulator
22
We Have Overcome
23
A Hare-brained Proposal
24
A Monetary Policy Rule for Emerging Market Economies
25
Notes by vineetpunnoose on www.kiwipaper.com
KI
IW
Content
A Matter of Life and Death
26
Critical Look at the Narayana Murthy Recommendations on Higher Education
27
The Arab Uprisings and the Question of Democracy
28
Architecture of Surveillance
29
What Happened at the Bali WTO Meet and Why
32
KI
IW
Maoist Defeat in Nepal The Price of a Missed Opportunity
Sat, Jan 25, 2014
EPW, international, nepal,
Organisational issues, adjustment with the status quo and tactical errors resulted in the
Nepali Maoists gaining an unfavourable image among the electorate in the second Constituent
Assembly elections. This resulted in a humiliating defeat. Previously, the United Communist
Party of Nepal (Maoist) or UCPN(M) had more legislators than the combined strength
of the Nepali Congress (NC) and the Communist Party of Nepal-United Marxist Leninist
[CPN(UML)] who had managed 223 seats in total. Now the Maoists' strength has shrunk
to be more than half of the NC-UML tally of 175 seats The 2000-year-old feudal monarchy
was abolished and Nepal had become a democratic republic, almost by universal consensus
in the first session of the CA in 2008. This process had been completed very peacefully
despite the presence of a rebel army and the unresolved status of a long-standing Maoist
insurgency. Many features of the Constitution in the making had a decisive socialist character
and inclusive nature about them. The right to proportional, social inclusion of women,
dalits, ethnic minorities, Madhesi communities, oppressed groups, workers, the poor farmers
in state structures and institutions had been ensured as a form of social justice in the Interim
Constitution (IC) promulgated in November 2006. The rights to employment, free secondary
school education, free basic health services, food, social security for children, elderly people,
widows and the destitute had been ensured as the fundamental right of every citizen in
the IC and the new draft Constitution as well. The declaration of the reinstated Nepali
Parliament on reserving 33% of seats for women in all the state mechanisms in 2006 was
also a landmark event in the history of women's inclusion in Nepal. Three additional important
rights for Nepali women had been guaranteed in the Interim Constitution: namely, the
equal right of daughters and sons to ancestral property; the right of every child to get citizenship
in the name of the mother as well (children who have no father and who were born out
of wedlock); and, the right to reproduction and reproductive health. It had also been unanimously
agreed that if a major post in the legislature is held by someone of a particular gender,
the second major post must be allotted to someone of the opposite gender The dalits of
Nepal had also been provided the right to participate in all the organs, agencies and sector
of state mechanisms, on a proportionate and inclusive basis for the first time, in the draft
Constitution. They were now entitled to obtain seats as a form of positive discrimination
- 3% at the federal level and 5% at the provincial level. The exemplary practice of inclusive
and participatory democracy could be seen in the first CA itself. Thirty-three per cent of
the members of the CA were women, 8% were dalits, 34% were Madhesis, 35% were
Janajatis and 3% belonged to the Muslim community; all by itself a big breakthrough in
terms of representation. Four failures of the UCPN(M) primarily played a role in their
humiliating defeat. The first failure related to the fact that while the Maoists managed
to lead the transformation of the political system of Nepal, they failed to bring about such
a transformation in the economic, social and cultural spheres. The inability to follow up
the "political transformation" with concomitant socio-economic reforms in the countryside
- lack of progressive land reforms, for example, even though there was a commonly agreed
Page 1
KI
IW
provision in the Comprehensive Peace Accord (CPA) that spoke of elimination of all feudal
remnants through scientific land reforms. The second failure was that the Maoists in their
limited time in government could not manage to initiate reforms in the state apparatus
leading to changes in the bureaucracy, the army, the judiciary and the police. There were
clear provisions on "democratisation" of the army and the bureaucratic administration
in the CPA. When the Maoists first tasted power in 2008, they did not commence any
reform of the state apparatus even when the situation was ripe in their favour due to the
immense popularity as the victors of the first CA and that of the Maoist leadership led
by Pushpa Kumar Dahal "Prachanda" himself The third failure related to the inability of
the Maoist leaders and their cadre to prove themselves to be qualitatively different in their
morals and functioning while in power from the rest of the polity. The Maoist party members
were seen to lead a suddenly acquired lavish and corrupt lifestyle, resulting in a drop in
their popularity. The fourth and biggest failure was the inability to write a Constitution
on time. While this was a collective failure as all the four major forces - the NC, the UML,
the Madhesis and the Maoists - could not manage to complete the process in time, it must
be said that the UML and the NC were primarily responsible. The main issues of contention
in the first CA which led to its dissolution related to the name, number and boundary of
federal provinces (state restructuring) plus the issue of form of government at the federal
level. However, the Maoist leadership withdrew immediately from the agreement due
to pressure from the Madhesi parties and Janajati leaders. The withdrawal from the agreement
at the eleventh hour proved to be a political blunder because there was no time left for
another agreement.
Rightward Drift in Nepal
Sat, Jan 25, 2014
EPW, international, nepal,
The November 2013 elections to a new Constituent Assembly in Nepal gave a fractured
mandate but one that made the traditional upper caste and upper class groups dominant
again. The principles and goals set by the fi rst iteration of the Constituent Assembly can
perhaps be diluted in the changed circumstances with the marginalisation of the Maoists
and other forces favouring federalisation. Due to the mix-electoral system enshrined in
the Interim Constitution of Nepal 2007, direct elections were held only for 240 out of 601
seats in the assembly. The government is to nominate 26 personalities to ensure that national
figures, civil society activists and extremely marginalised groups get adequate representation.
The rest - 335 in all - have been nominated by political parties in ratio of votes received
by them on the basis of a list submitted to the Election Commission. In elections for proportional
representation (PR), the entire country was considered to be a single constituency where
the electorate voted for the party of their choice rather than competing candidates. Parties
faced a problem in deciding their nominees because the priority submitted to the Election
Commission was not binding and they had to drop more names than they could accommodate
in their share of the electoral support. The monarchist Rastriya Prajatantra Party Nepal
(RPPN), Madheshi Janadhikar Forum Loktantrik (MJFL) and United Communist Party
Page 2
KI
IW
of Nepal (Maoist) - hereafter UCPN(M) - almost broke up due to disagreements over nominees.
Leaders have been charged with misusing the PR list to pack the CA with spouses, in-laws,
relatives and sundry hangers-on. the Big Two - the Nepali Congress and the Communist
Party of Nepal (United Marxist-Leninist) or CPN(UML) - will have less than 200 seats
each in the new assembly. Being political competitors, it is hard for them to collaborate
but the rest of the house is too divided - 30 parties and a few independents - to enable
them forge a coalition without each other. The formulation of a new Constitution is going
to be as challenging as ever. Mainly due to fragmentation and personality clashes, the Madheshbadi
(Terai-based) parties representing the people of the plains in southern Nepal have lost
FPTP seats even though their share of votes remains more or less the same. Newly formed
parties of indigenous Janjati groups have largely failed to electorally register their presence
in any significant manner. Issues and agenda raised by them, however, continue to be relevant
and enjoy popular support. The conduct of elections too was not sufficiently inclusive.
Citizenship certificates were made mandatory for those wishing to vote, but at least a quarter
of all eligible voters, according to the recent census, are yet to receive the official document
that establishes their status as Nepalese citizens. In order to make polls possible on time,
electoral rolls were not updated but voter's identity cards were issued to those who had
registered with the Election Commission a year earlier. Charges of pre-poll scheming and
post-poll frauds are impossible to establish. However, parties that believe the conduct of
the elections was less than fair can always raise the issue and undermine the legitimacy
of CA-II. According to a last minute agreement between major parties, a parliamentary
committee is to investigate all allegations of fraud. Its mere formation acknowledges the
lack of consensus over the legitimacy of the process. The Ranarchy - a term used to denote
the oligarchy of the Rana clan - felt challenged once the British, patrons of the family
since Jang's crucial help in crushing the Sepoy Mutiny of 1857, left south Asia in 1947
as Pakistan and India gained independence. The hereditary Premier Padma Shamsher sought
and got the help of Jawaharlal Nehru in framing what can be called the first modern Constitution
of Nepal in 1948. Feuds in the family led to the fall of Padma and the Government of Nepal
Constitution, 1948 failed to get implemented. The Constitution of 1958 had sought to establish
parliamentary practices modelled after the British convention of constitutional monarchy
without realising that Nepal lacked the tradition to check the ambitions of a "god-king".
The parliamentary elections in 1959 gave a two-thirds majority to the Nepali Congress.
Its leader and Prime Minister B P Koirala enjoyed immense popularity inside and outside
the country. In 1962, Mahendra proclaimed a Constitution that sought to institutionalise
autocratic rule of the king in the name of the panchayat system modelled after the "basic
democracy" of Ayub Khan in Pakistan and Sukarno's guided democracy experiments
in Indonesia. The People's Movement (Jan Andolan-I) in 1990 led to the restoration of
multiparty democracy but the king continued to exercise influence much beyond what
is usually expected of a constitutional monarch in a parliamentary democracy. History
repeated itself when Gyanendra - declared the new ruler after king Birendra and his entire
nuclear family were tragically decimated in the mysterious Narayanhiti Palace massacre
on 1 June 2001 - staged yet another royal-military coup and assumed all state powers on
Page 3
KI
IW
1 February 2004. The formation of CA-II is in final stages. The electorate has done its
job. Despite making a mess of the process and giving the PR system a bad name, political
parties too have completed their task and submitted the final list of nominees to the Election
Commission. The Election Commission has also forwarded the roll of winners to the office
of the president of the republic. The row now is who gets to call the first meeting of the
second Constituent Assembly. The formation of the government is fraught with inherent
dangers of intra- and inter-party conflicts of a hung assembly. The risk of instability is
multiplied considering the fact that Nepal is a fragmented society with inter-community
relations full of mutual suspicions sometimes bordering on enmity. The dominant group
- primarily from Bahun and Chhetri castes of the Hindu-fold speaking Nepali language
and sticking to a male-dominated social order - control all levers of power. They have
an overwhelming presence in national life, and the Bahun-Chhetris that together constitute
slightly over one-fourth of population occupy three-fourths of all key posts in the bureaucracy,
security forces, financial institutions, courts, media, academia and the non-governmental
organisation-sector. With CA-II too firmly under their grip, there is a justifiable fear among
the marginalised that the progressive agenda may lose steam in the process of framing
the Constitution. Initial symptoms are not very encouraging. The PR process was adopted
to ensure the participation of the marginalised and the externalised communities so that
those social groups that were incapable of competing in the FPTP process due to various
reasons would get an opportunity through the ladder of political parties. The very same
parties that misused the system most to pack the assembly with their favourites from family,
caste, clan, and friendly business communities are now calling the electoral system flawed.
Akin to giving a dog bad name before shooting it, the risk is now high that the PR process
will be downgraded even if not done away with in the new Constitution. That, however,
depends upon what kind of Constitution is made within the stipulated period.
Bangladesh's Predicament
Sat, Jan 18, 2014
EPW, international, Bangladesh,
With nearly the entire opposition - including the Bangladesh Nationalist Party (BNP)
and a faction of the Jatiya Party headed by former dictator H M Ershad - boycotting the
elections, a low voter turnout has hurt the legitimacy of the "win" by the Awami League
(AL) led by Sheikh Hasina. The official estimates have indicated that less than 40% of
the electorate turned out to vote, a significantly lower number than 85% who voted when
the AL won a landslide in 2008. In the recent elections, nearly half of the winners from
the AL have been elected unopposed which itself questions the credibility of their "election".
between the largely left-leaning Bengali nationalists represented by the AL and the alliance
of right-wingers and Islamists, represented by the BNP, Jatiya Party and the Jamaat-e-Islami
(JI) - continued in the run-up to the elections. The opposition demanded that the elections
be held under a caretaker administration as has been the precedent in the country. The
AL, for its part, refused to budge from its stance that elections could only be conducted
by the Election Commission with the ruling party still in power. The BNP even rejected
Page 4
KI
IW
the AL's invitation to join a consensus government till the elections. The JI, which is presently
banned in Bangladesh, found the violent conflict over elections an opportunity to strengthen
its position. This party is facing a sharp political and judicial attack for war crimes committed
during Bangladesh's liberation war of 1971. The JI has been an ally of the BNP and its
violent protests against the conviction and subsequent execution of the party's leader,
Abdul Quader Molla, created an environment of lawlessness and fear ahead of the elections.
The JI targeted the Hindu minority and prominent secularists, physically attacking some
Hindu temples and even burning them. More than 20 people were killed due to this violence.
The AL's position seems tenable, for the constitution was amended to prevent a return
to "caretaker" rule but this was done through its brute majority in parliament. The AL's
staunch refusal to concede any ground to the opposition has also not helped it; the elections
have lost credibility and made the new government vulnerable. It may have been better
to postpone the elections and find a way to ensure the participation of the opposition by
assuring them that the AL's brute parliamentary majority and control of administration
would not be abused to rig the polls. As things stand, the ruling party has indicated that
it is willing to call early mid-term elections provided the opposition calls off its violent
agitation. But the long-standing, personalised and acerbic rivalry between the two leaders
of the AL and the BNP suggests that common ground will be difficult to find. It was expected
that the tumultuous political events that accompanied the birth of Bangladesh, with the
unresolved contradictions between the forces representing secular Bengali nationalism
and those representing versions of Islamism, would finally attain a sense of closure with
the 1971 war crime trials. Yet, that process itself has fed the violent agitations and seems
to have given, at least for now, a fillip to the BNP-JI political alliance. Perhaps this is due
to the timing of the convictions and the execution of Molla just a few months before the
elections and appear to have been rushed through with an eye to consolidate the secular
Bengali nationalist vote. Such narrow political considerations have prevented the AL from
reaping long-term political dividends from these trials and have made it that much more
difficult for it to reach out to the opposition parties.
Avoidable Mess
Sat, Jan 11, 2014
Khobragade affair, EPW, international,
If the manner in which she was arrested and subjected to various indignities - handcuffing,
strip searches, body cavity searches - could have been avoided considering her position
and the nature of her alleged "crime", the reactions to this incident have also been strident,
betraying a sense of misplaced nationalism on the part of the Indian political establishment.
The argument that this practice - visa fraud and false declaration related to wages - is rampant
in diplomatic circles and that Khobragade had diplomatic immunity does not hold water.
Khobragade's non-payment of the minimum wage was an issue to be investigated in the
event of a complaint filed by her employee in the US and consular officials could indeed
be arrested for acts committed outside official functions, according to the Vienna Convention.
Her subsequent transfer to India's Permanent Mission to the United Nations seems a belated
Page 5
KI
IW
acknowledgement of the above fact. In the past decade, the Indian foreign policy establishment
-egged on by governments - has gone out of the way to address US concerns and has taken
many steps to seek closer ties with the US. It risked sabotaging its nuanced relationship
with countries like Iran by voting against it in a resolution on Iran's nuclear programme
in the International Atomic Energy Agency in 2006, which paved the way eventually for
sanctions against Iran. It went out of its way to honour the unilateral sanctions imposed
on Iran by the US over and above what the United Nations had come up with
From Movement to Government
Sat, Jan 4, 2014
politics, EPW, polity,
The AAP's rise and the manner in which it has achieved power (even if in a small, symbolically
important, state) has had few precedents in India's democracy. It managed to bring together
a cross-section of Delhi's population and successfully converted a single-point mass movement
into a political party with diverse support. Its support base has included members of the
upper-middle and middle classes who have bought into the anti-corruption message and
have interpreted it as governance delinked from inefficiency and malfeasance. The urban
poor - especially those living in slum clusters - extended support on the promises to ensure
the supply of 700 litres of free water for households, to reduce power tariffs by 50% after
a thorough audit of the electricity supplying companies, and to regularise the "illegal"
and unauthorised residential areas, including slum clusters. Whether AAP manages to
grow out of Delhi into a national political force depends, to a large extent, on how it performs
in Delhi. Its rise has been helped by some fortuitous factors like the relatively less importance
for caste in urban Delhi, its large migrant population and the saturation coverage of its
activities by the media. Delhi's compact geographical space also helped. This has worked
well in its short rise, as it has allowed its largely left-of-centre leaders and mass base to
take along a large section of the right-of-centre middle class. It appears that the AAP leadership
expects to sustain their cross-class support base by staying away from clearly enunciated
economic policies and foregrounding the fight against corruption and inflation. In terms
of the political positions the AAP has taken, the party's rhetoric has itself showed a slow
but clear shift to the left-of-centre position. This will, if it continues on this path, make
it a replacement for the Congress, much of whose mass base and populist imagery the
AAP is adopting. If the AAP is to succeed in this, it will be forced to stand increasingly
in stark opposition to the right-wing BJP. For both replacing the Congress as well as providing
an alternative to the BJP, the AAP will need to articulate clearer political positions and
take ideological stands
Disabled by Lack of Political Will
Sat, Jan 11, 2014
Disability rights, social, EPW,
For the estimated 70 million disabled people in India, the government's failure to table
the Rights of Persons with Disabilities Bill in Parliament in the winter session was another
Page 6
KI
IW
act of cruel neglect and one that their representative organisations are gearing up to tackle.
The disabled in India are "invisible", not to politicians alone; society at large disregards
the disabled. Since they do not easily fit into the sociocultural expectations of what "normal"
men and women should be like, the disabled are either to be pitied and dealt with charitably
or shunned and ignored. To a certain extent, this attitude was challenged by the Persons
with Disabilities (Equal Opportunities, Protection of Rights and Full Participation) Act,
1995 which was considered landmark legislation at the time. However, while this Act
did go a small distance in ensuring greater acceptance of the rights of the disabled to employment,
not only its implementation but also its scope left much to be desired. It also leans heavily
towards the medical approach, emphasising the physical disabilities and tending to view
welfare measures as the solution. I A number of crucial areas are also out of the 1995 Act's
ambit, like the problems faced by disabled women, disabled persons' accessibility to cultural
activities and sports, their preschool and higher education, the rights of the mentally ill
(here too the women have special vulnerabilities) and many other nuanced rights that are
taken for granted by the non-disabled. Disability rights' groups wanted a comprehensive
legislation that would be in keeping with the United Nations Convention on the Rights
of Persons with Disabilities which India has ratified and which stresses fundamental rights.
Also, this new legislation would have to be hinged on the non-negotiable rights approach
rather than doling out concessions. The Ministry of Social Justice and Empowerment's
proposal to amend the 1995 Act came under fire and thus work began on drafting the new
bill. The 1995 Act however helped to bring the rights and problems of the disabled into
public and media discourse and also helped different rights groups to band together on
a common platform to a large extent. It must also be noted here that this law suffers from
the usual problem of implementation which depends again to a great extent on a sensitive
bureaucracy and committed politicians. Recently, the Supreme Court (SC) ordered a minimum
of 3% reservation for them in all central and state government jobs. The significance of
the SC's order lies in the fact that it quashed the central government's 2005 office memorandum
and claim that reservation for the disabled must be restricted to "identified" posts. The
SC pointed out that employment is an important feature of empowerment and inclusion
of the disabled and it was lack of employment that forced this section to live in poverty
and fail to contribute to family and community.
Poverty-Hunger Divergence in India
Sat, Jan 11, 2014
hunger, poverty, social, EPW,
The usual explanations for the divergence between calorie intake and consumption expenditure
in India ignore the enormous squeeze on food budgets arising from dispossession (leading
to loss of access to common property resources), rising migration (involving a loss of access
to non-market food items) and the forced turn to the private sector for social sector services
that are more expensive than public sector provision. It is the resulting squeeze on food
budgets that has led to calorie intake declining even as per capita consumption expenditure
has risen. The usual explanations for the divergence between calorie intake and consumption
Page 7
KI
IW
expenditure in India ignore the enormous squeeze on food budgets arising from dispossession
(leading to loss of access to common property resources), rising migration (involving a
loss of access to non-market food items) and the forced turn to the private sector for social
sector services that are more expensive than public sector provision. It is the resulting
squeeze on food budgets that has led to calorie intake declining even as per capita consumption
expenditure has risen.
FDI in India - Ideas, Interests and Institutional Changes
Sat, Jan 18, 2014
FDI, EPW, economics,
Climate Change, Uttarakhand, and the World Bank's Message
Sat, Jan 4, 2014
environment, EPW, climate change,
The Uttarakhand disaster left a trail of death and devastation in its wake. The state government
claims that 557 people died, but the death toll could be as high as 15,000. Tourism is one
of the important sources of income and employment in the affected areas. Some observers
have commented that it was an expression of the wrath of nature at the disruption caused
to a natural ecosystem by accelerated infrastructure development. First, the floods and
devastation in Uttarakhand are probably linked to the effects of global warming and climate
change, which until now was not seen as something imminent, but as part of a distant future
scenario. We need, therefore, to treat this as a wake-up call and reformulate our thinking
on climate change. No longer is it something that future generations are going to have
to deal with, the initial stage is already upon us. It has attained the status of the immanent,
or something that is already here, and we have to factor in climate change and its effects
just as we were so far doing with climate itself. The World Bank report focuses on how
the effects of climate change on agriculture, water resources, coastal fisheries, and coastal
safety are likely to increase, often significantly, as global warming climbs from the present
level of 0.8 0 Celsius over pre-industrial times by mid-century and continues to become
4degC warmer by 2100. It illustrates the range of effects that much of the developing world
is already experiencing, and will be further exposed to, while indicating how these risks
and disruptions will be felt differently in other parts of the world. South Asia refers to
the region comprising seven countries (Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan
and Sri Lanka) with a population of about 1.6 billion people in 2010 and still growing,
which is projected to rise to more than 2.2 billion by 2050. At 4 0 C global warming, the
sea level is projected to rise more than 100 cm by the 2090s, and the monsoon to become
more variable with a greater frequency of devastating floods and droughts. Glacier melting
and snow cover loss could be severe, and unusual heat extremes in the summer months
(June, July and August) are projected to affect 70% of the land area. The climate of the
region is governed by the monsoon, with the largest fraction of precipitation over south
Asia occurring during the summer season. In the past few decades, a warming trend has
Page 8
KI
IW
begun to emerge in south Asia, particularly India, which appears to be consistent with
the outcome expected from human-induced climate change. Projections for the Indian
monsoon are uncertain because of the inability of most climate models to simulate it accurately.
According to the report, global mean warming approaching 4 0 C, a 10% increase in annual
mean monsoon intensity, and a 15% increase in the year-to-year variability of monsoon
precipitation is projected, compared to the levels during the first half of the 20th century.
As warming goes from 2 0 C to 4 0 C, multiple threats of more extreme heat waves, rising
sea levels, more severe storms, droughts, and floods will have serious implications for
the poorest and most vulnerable people. In India, for example, the mean flow of the Indus
may increase by about 65%. The Ganges may have a 20% increase in run-off by 2040,
and a 50% increase in run-off by the 2080s. The late spring and summer flows of the Brahmaputra
may substantially decline. All this is while the gross per capita water availability is projected
to decline due to population growth. the projected increase in heavy precipitation associated
with climate change poses a serious risk to the cities - and that does not even take into
account the effects of sea-level rise. Climate projections indicate a doubling of the likelihood
of an extreme event similar to the 2005 floods, and direct economic damages (that is, the
costs of replacing and repairing damaged infrastructure and buildings) are estimated to
triple in the future compared to the present day and to increase up to $1.9 billion due to
climate change only. The Ministry of Environment and Forests (MoEF) has for long been
urging caution in opening up the Himalayan region rapidly. The usual argument for building
the hundreds of roads in the plans of development agencies is that these are required for
the defence of the country. We cannot join issue with the defence ministry, but, realistically
speaking, it is going to take decades to get all the planned roads done, and they will have
an adverse effect on the ecology and probably the living conditions of the local people
because competition for natural resources and ecological services may increase beyond
the carrying capacity of these fragile localities. Although we have all along been complacent
about the Himalaya mountains being our great defence in the north, we are at the lower
contours and the terrain on our side is very difficult. This means that we are more at a
disadvantage as we do not command the heights. Even though it may not be our place
to make suggestions on so grave an issue, we would say that we need to make use of diplomacy,
trade, and cultural contacts to secure our northern border, rather than relying solely on
physical measures. If roads have to be built for defence purposes, they should be closed
to commercial and tourist traffic from the plains and be used solely for by local communities,
local administration, and the defence forces. Loss of Electricity Generation The MoEF
has tried to infuse a sense of moderation in developing hydro resources in the Himalayas,
including commissioning special studies on the cumulative effect of dozens of projects
on the same river system One of the problems with development of the hills is that most
of the infrastructure that state governments want is for the benefit of people from the plains,
and not so much for the hill people themselves. With its already huge population and limited
geographical area and natural resources, India is already under resource stresses of every
type, whether it be for water, energy, food, living space, or clean air. Our people are also
among the world's most peripatetic, as even the poorest do not hesitate to make long journeys
Page 9
KI
IW
to visit relatives and see new places.

Rescue Package for Power Discoms
Sat, Jan 25, 2014
EPW, power, discoms, economics,
About 75% of Indians either lack access to any form of commercial energy for household
use or have limited access to the same, well below levels in several low-income comparators.
We continue to subsidise food, health education, and shelter and fund programmes aimed
at empowering the deprived, especially women and the girl child. The need for these subsidies
and empowerment schemes would have greatly reduced if we had succeeded in providing
modern commercial energy to all Indian households. Adequate access to affordable modern
cooking energy and electricity would have improved health and education, especially among
women and girls (by relieving them from the daily drudgery of collecting biomass and
exposure to unhealthy chullahs) improved and developed skills; raised productivity; and
provided alternate livelihoods. Most importantly it would have improved the efficacy of
some of the subsidy programmes, thereby empowering the deprived and reducing their
dependence on subsidies The proposed financial restructuring of state discoms suffers
from all of the shortcomings of its predecessor as it (a) simply converts half of the bank
loans to interest bearing tax-free bonds guaranteed by the same fiscally strained governments
that own the bankrupt state utilities while paying lip service to fiscal prudence; (b) reschedules
the balance debt of the discoms and attempts to incentivise compliance through an inadequate
trickle of new funds attached to a zillion impractical and unenforceable conditions; and,
most importantly, (c) demonstrates little understanding of the underlying malaise thereby
leaving the real problems unaddressed. The first thing that should strike any serious power
sector professional is that all central public sector units (CPSUs) that are primarily engaged
in generation and high voltage transmission are highly profitable, as are the CPSUs and
private sector companies that provide fuel, equipment and services to the power sector.
Similarly, transporting fuel for the power sector is also a highly profitable enterprise. The
Power Finance Corporation and Rural Electrification Corporation, the dedicated lenders
to the power sector, are AAA rated financial institutions. The private sector bulk power
producers and private distributors (that serve a few cities) are, by and large, also doing
well. The sector is thus rich for all stakeholders except for the loss-making state discoms
that are mandated to service the end users and actually generate bulk of the cash flow that
delivers the returns to all the other participants in the sector detailed in the previous paragraph.
Another anomaly, explained in greater detail in the following section, that should strike
those at the helm is that the generation and transmission companies owned by the state
governments do not enjoy the guaranteed regulated returns enjoyed by CPSUs and private
players active in these fields and are just permitted to keep their heads above water by
the state regulatory agencies. This he Electricity Act 2003 sought to create a competitive
power market with transparent competition in every element of its value chain, operating
under an independent and informed regulatory regime. This has not happened Indian consumers
with average per capita income of less than 8% of their US counterparts, in purchasing
Page 10
KI
IW
parity terms, must pay up to 30% more for their electricity to ensure viability of the power
sector in India! Truth is that the Indian distribution sector cannot be as efficient as the
US system given our low level of consumption and the profile of our loads. So, if we want
a sustainable power sector with the currently prevailing bulk power prices, India's average
retail tariffs would need to be even higher. This is clearly unsustainable. The above state
of affairs has come to pass despite the fact that coal, which accounts for over 70% of our
power generation, is sold at a discount to its true economic value at the pithead. This low
realisation not only results in lower royalties for the coal-bearing states but also encourages
mining practices that are actually destroying our most abundant though limited domestic
energy resource These returns primarily support highly inefficient CPSUs and a non-competitive
private sector under a cost plus regime that allows mandated recovery of all approved costs.
The regulatory regime enforced by the Central Electricity Regulatory Commission (CERC)
for these select entities also applies legally to the state generation and transmission utilities.
However, given the pressures that state regulatory agencies face in keeping consumer tariffs
within reasonable limits they, at best, allow full recovery costs to the state-owned generation
and transmission companies and permit the state distribution utilities to book huge losses.
Raising tariffs to levels that allow identical high returns promised under the prevailing
regulatory regime even to the state-owned utilities is all the more difficult under the prevailing
tariff regime that is riddled with cross-subsidies. The customers that fund the cross-subsidies
are already paying among the highest tariffs in the world. Raising their currently unsustainable
tariffs further will only raise the reward for theft of electricity, thus boosting this free enterprise
while driving electricity even further beyond the reach of the bottom half of my fellow
Indians. Any power sector expert should know that in India, the power distribution segment
requires more than the normative level of investment typical of a more industrialised society.
This is so because: (a) the combined load of all households in a typical Indian village is
less than the load of a single middle-class home in the suburban US; (b) even the paying
industrial and commercial loads are relatively much smaller than similar loads in more
advanced countries; (c) the tariff regime is riddled with cross-subsidies requiring separation
of feeders and metering for effective management and control; and (d) there is an overall
shortage of power and peculiar pressures of load management given the realities of our
political economy. However, even normative levels of distribution investment have gone
missing since independence. Poor vision, poor planning and procurement practices, high
degree of political interference in all commercial decisions and human resource management,
and, above all, the lucrative arbitrage offered by a tariff regime that ranges from free power
to power priced at rates not charged anywhere else in the world has led to a grossly inefficient
and distorted sector wherein available data is completely unreliable and doctored to obfuscate
massive corruption, poor productivity and a culture of mediocrity.
Page 11
KI
IW
Crass Decision
Sat, Jan 11, 2014
environment, environmental laws, EPW,
Jairam Ramesh was considered a proactive environment minister when Jayanthi Natarajan
was brought in to replace him in order to make the environment ministry more growth
and industry friendly. Her short tenure was not marked by any major push on environmental
issues; rather she was seen as someone who merely followed the set laws, rules and procedures
for granting environmental clearances for industrial projects. It is an indication of how
environmentally devastating is the "business-as-usual" model of economic development
we follow that even the most basic adherence to environmental laws leads to howls of
"obstructionist" and "anti-development" from the "growth-at-any-cost" cabal of ministers
and businessmen. And, true to the script, among the first reported promises of the new
environment minister was that project-clearance files would leave his desk by 5 pm the
very day they were presented to him; there was no such promise of upholding environmental
standards and safety. Reports also emerged, within a few days, that the government will
allow the cultivation of genetically modified (GM) food crops. Further, reports are surfacing
that the government plans to give a major push to the river interlinking project by giving
the go-ahead to the Ken-Betwa link and finalising the detailed project reports of a host
of others. The reason GM food crops had not been given clearance by the environment
ministry till now was because the evidence on this matter, relating to human health as
well as larger ecological consequences, was, to say the least, inconclusive. In fact, there
were major questions raised about the dangers of introducing GM food crops, given the
shape of agriculture and industry, and subordinate position of consumer rights in the country.
The argument that GM techniques are essential to meet the country's growing food needs
is dubious; demonstrated solutions for raising Indian agriculture's infamous low yields
remain unimplemented. Equally dubious and potentially dangerous is the proposal for
river interlinking. There is so much that has been written to highlight its clear dangers
to the environment, the impracticability of the engineering and hydraulic solutions proposed,
the costs in terms of loss of livelihoods and the heavy burden on the government exchequer,
as also the international ramifications. Despite such consequences, the Supreme Court
had passed a flawed order, encroaching on the executive's domain, to implement the river
interlinking plan. Rather than seeking judicial review of its non-enforceable order, the
government under its fossil fuel driven environment minister is reportedly pushing this
fatal scheme.
Parliament, State Legislature and Bifurcation
Sat, Jan 18, 2014
Andhra Pradesh, telengana, EPW, polity,
The Constitution and various judgments of the Supreme Court are quite clear that Parliament
has the unequivocal power in deciding matters relating to reorganisation of the states. Any
debate regarding the constitutional provisions is more in the realm of politics than about
Page 12
KI
IW
any interpretation of the Constitution. The first question is on Article 3 of the Constitution.
There is a demand now to review Article 3, claiming that it goes against federalism. The
dilution of federalism is a political question. The political process operates on what the
Constitution says today, not on what the Constitution should have been. During the six
decades of post-Independence Indian history there has been an intense battle in the political
and legal spheres on many constitutional provisions that strengthen the unitary character
of the polity. These debates have led to a proper interpretation. The classic example is
that of Article 356. But, barring a few court cases, no serious debate has ever been initiated
on amending Article 3 of the Constitution, which clearly keeps the power to bifurcate in
the exclusive domain of Parliament. The Constitution accords Parliament unequivocal
and unambiguous powers in this regard. The Supreme Court of India has repeatedly upheld
this in its judgments between 1959 and 2009. The state legislature was accorded only a
consultative role. This is a constitutional reality, evident from a plain reading of the relevant
provisions of the Constitution. Article 3 of the Constitution says: Article 3 makes three
things clear: (1) A state is bifurcated by an Act of Parliament and Parliament only. (2)
Before enactment by Parliament, the president has to refer the draft bill to the legislature.
(3) The legislature has to express its views. Parliament can make a law bifurcating a state
in whatever manner it deems fit, independent of whatever may be the views expressed
by the concerned legislature. The legislature was given only a consultative role. Any argument
that such a provision goes contrary to federalism is a political question which needs to
be settled through the political process. The constitutional interpretation of Article 3 cannot
be determined by political arguments. But, this argument given in regard to "consultation
and consent" is valid even today. Consent is required only when the states retain sovereignty.
In modern India, sovereignty lies with the people of the Union of India. In fact, this distinction
was further clarified by the Supreme Court of India in its judgment on the case - Babulal
Parate vs The State of Bombay and Another, 28 August 1959. The judgment said: The
Constitution stipulates that the proposal for bifurcation should be first referred to the affected
legislature for expression of its views. However, Parliament need not necessarily proceed
as per the views of the state legislature. Parliament can even amend the original proposal
and adopt it. Even these amendments need not be referred again to the state legislature.
This constitutional position, upheld by Supreme Court in case related to Mumbai state
reorganisation in 1959 and Uttar Pradesh state reorganisation in 2009, has only articulated
the paramount power of Parliament in this regard. The Supreme Court in the Babulal Parate
case said: At the time of drafting the Constitution the nation faced a serious challenge
to its unity and integrity. The states were in a very fluid form necessitating a remapping
of India. But, the question today is whether it is advisable to accord such paramount power
to Parliament in relation to the bifurcation of states. But, surprisingly no serious effort
was ever made to redefine Article 3. Can we invoke the principles of federalism when
it comes to the bifurcation of states? Bifurcation affects the relationship between two regions
of a united state, whereas federalism refers to the relationship between the centre and the
states. The other school of thought is that if a minority territory within a united state wants
to be separated, the mandatory consent of the affected legislature would make reorganisation
Page 13
KI
IW
of state impossible. In fact, this opinion was expressed even in the Constituent Assembly
debates. The questions raised over bifurcation invoking the principles of federalism are
essentially political in nature. The Supreme Court, in a number of judgments, upheld the
paramount position of Parliament as far as the reorganisation of states is concerned. More
significantly, defining the nature and scope of Articles 3 and 4 of the Constitution, the
Supreme Court stated that the power of Parliament as exclusive and plenary in the Mullaperiyar
Environmental Protection Forum vs Union of India . The Supreme Court Judgment on
Mullaperiyar Dam on 27 February 2006 (Case No: Writ Petition (Civil) 386 of 2001 Petitioner:
Mullaperiyar Environmental Protection Forum Respondent: Union of India and Ors, Date
of Judgment: 27 February 2006 Bench: Y K Sabharwal, C K Thakker and P K Balasubramanyan
Judgment: Judgment [With Tc (C) Nos 56-59 and 96-99 of 2002] Y K Sabharwal, CJI)
said: The power that Article 3 confers on Parliament was emphasised even in other cases.
The Supreme Court in its judgment on the case - Petitioner: V B Raju vs Respondent: State
of Gujarat and Anr, Date of Judgment 4 September 1980, said as follows: Article 4 of
the Constitution clarifies this position. It says: The Supreme Court gives a further elaborate
explanation in regard to the scope of Articles 2, 3 and 4 in a judgment related to the case
- Mangal Singh and Another vs Union of India (17 November 1966). The judgment stated
The above judgment further stated: The incisive analysis of the relevant constitutional
provisions and the interpretation given by the constitutional courts clearly indicates that
a bifurcation of the state is done by an Act of Parliament. Parliament has an unambiguous
power in this regard. The state legislature was accorded only a consultative role. When
the state legislature expresses a mixed opinion Parliament has to take a call. How far Parliament
takes cognisance of mutually conflicting sentiments expressed in the state legislature is
essentially a political question.
The IPCC's 'Summary for Policymakers'
Sat, Jan 11, 2014
mains, environment, EPW, ipcc,
Recent reports from the Intergovernmental Panel on Climate Change's "Summary for Policymakers"
make for alarming reading about the global warming phenomenon. How bad climate impacts
will be beyond the mid-century depends crucially on the world urgently shifting to a development
trajectory that is clean, sustainable, and equitable, a notion of equity that includes space
for the poor, for future generations and other species. Snow cover in the Northern Hemisphere
in June, says the SPM, has reduced by 11.7% per decade since 1967. Which means that
snow cover in that month over the Northern Hemisphere has fallen to half of what it was
less than 50 years ago. The second time was when reading that permafrost - frozen soil
that extends several million square kilometres along the high Northern latitudes, frozen
to several feet deep below the surface since the last glacial period, until now - has warmed
by a staggering 3 degree Celsius (degC) in northern Alaska since the early 1980s and 2 degC
in the Russian European north since 1971. The earth's surface over each of the last three
decades, says the latest Summary, has been warmer than any preceding decade since 1850,
and has warmed by 0.85 degC since 1880 (the earth's average temperature in 2011 was 14.47 degC).
Page 14
KI
IW
An average rise of 0.85 degC may not seem like much until we realise that barely 5-6 degC
separate current temperatures from the peak of the last glacial period 20,000 years ago;
that some regions, like the Arctic and the Himalayas, are warming much faster than this
average; and that a number of species have already been rendered extinct by warming
thus far. This temperature rise is also significant because it reversed a long-term downward
trend in the earth's average temperature, a natural decline that began roughly 5,500 years
ago until about 1850 (Marcott et al 2013). Between 1901 and 2010, says the Summary,
sea levels rose by 19 cms on average worldwide. In recent years, this rise has increased
to 3.2 mm a year. Much of this rise in the 20th century has happened because of ocean
waters expanding as they get warmer, and due to glaciers melting. The third highest contributor
to sea level rise, interestingly, is "land water storage" (p 7), groundwater and water from
reservoirs that is being frenetically pumped and eventually finds its way to the sea. Water
vapour levels have risen by 3.5% over the past 40 years, in keeping with the 0.5 degC warming
in that time. 1 It is also "very likely" (90%-100% probability) that human influence has
contributed to global-scale changes in the frequency and intensity of daily temperature
extremes, and doubled the probability of heat waves occurring in some locations (p 13).
What, according to the SPM, is causing all this and more? Of the total greenhouse gases
(GHGs) emissions since industrialisation began in the mid-18th century, 44% or little less
than half has accumulated in the atmosphere, the rest being almost equally taken up by
the oceans (making them more acidic), and by land-based ecosystems. As a consequence,
the atmospheric concentrations of the three main GHGs, carbon dioxide (CO 2 ), methane
(CH4) and nitrous oxide (N 2 O), have risen to levels "unprecedented in at least the last
8,00,000 years". They have risen to 391 parts per million (ppm), 1,803 parts per billion
(ppb), and 324 ppb in 2011, respectively, a rise 40, 150 and 20% above pre-industrial levels.
Carbon dioxide emissions alone from fossil fuels and cement production was nearly 35
billion tonnes in 2011, 54% above 1990 levels, the benchmark year against which GHG
emission cuts are measured under the Kyoto Protocol, a benchmark some countries, like
the United States, are trying to unilaterally shift to 2005. The section on the energy imbalance
caused by the main drivers of climate change, known as their radiative forcing, 2 throws
up a number of interesting points about the present. One, there has been a huge jump in
human-caused radiative forcing since the last Assessment Report in 2007, because of rising
emissions and new measurements of the warming effects of black carbon (Figure 5: 31).
Two, there has been a particularly sharp rise in methane's forcing, a potentially sensitive
issue given its connections with rice submergence farming carried out so widely in India
and China. Whereas it is true that methane emissions have been rising since 2005 - no
one has established why - in contrast to their plateauing since 1993, and that methane is
57 times as potent a gas as CO 2 , 3 the sharp rise in the latest report is partly because
the calculation includes its indirect effects on stratospheric water vapour and ozone. Three,
changes in the Sun's solar irradiance clearly has no effect on global warming, measuring
just 0.05 watts/m^2 since 1750, insignificant in comparison to human-caused forcing such
as, say, carbon dioxide emissions (1.82 watts/m^2) and methane (0.97 watts/m^2). But
the most significant thing about this section is about the future: it is particularly alarming
Page 15
KI
IW
that the radiative forcing from the three main GHGs mentioned above and from halocarbons
are in the range of 3 watts/m^2, because there is a commensurate relationship between
radiative forcing and eventual temperature rise, of roughly 0.75 degC of warming for every
watt of forcing. The Summary does not say so, but this would imply that we are already
committed to a warming above pre-industrial levels of about 2.25 degC, above the widely-accepted
benchmark of 2 degC. Basically, the unavoidable "warming in the pipeline" will be a lot
more than the 0.6 degC that is commonly accepted. Besides giving a gist of present and past,
the Summary also makes projections about future changes in the climate system, in the
near-term (2016-35) and mainly for the end of the 21st century (2081-2100) relative to
the period 1986-2005. It uses four possible pathways - representative concentration pathways
(RCPs) 2.6, 4.5, 6.0 and 8.5 - each corresponding roughly to a level of CO 2 and other
gases in the atmosphere by 2100 and a volume of CO 2 emissions until then. 4 Basically,
each pathway reflects possible energy choices and development trajectories. For the near-term,
temperatures will rise in 2016-35 by a further 0.3-0.7 degC relative to 1986-2005, a period
that was already 0.6 degC warmer than pre-industrial temperatures. We in India should be
concerned that increases in seasonal and annual mean temperatures are expected to be
larger in the tropics and subtropics than in the mid-latitudes, relative to internal variability
(p 15). The tropics are home to a huge number of the world's known species, and which
have historically evolved and been used to a relatively narrow temperature band. A small
rise may mean that many tropical species have to migrate or become extinct. For instance,
mackerel ( bangda, aila ) and oil sardines have already been moving northwards along
both coasts of India as the ocean waters get warmer. In the longer term, it is seriously alarming
that much of north, west and central India would be 4-5 degC warmer by 2081-2100 if we
stick to business as usual strategies (Figure 8: 34). Regarding the water cycle, it says that
monsoon retreat dates will likely be delayed in many regions. Regardless of whether or
not it was due to climate change, we have already seen the damage to crops that a delayed
monsoon retreat this year caused in many parts of India. Finally, a nearly ice-free Arctic
in September (the month of the lowest ice extent annually) before mid-century is likely
for the trajectory RCP 8.5. New Aspects in the Summary Methodological innovations
aside, this Summary has a number of new aspects. It says that sustained warming "would
lead to the near-complete loss of the Greenland ice sheet". That threshold is put at greater
than 1 degC above pre-industrial temperatures (we are currently at 0.9 degC above) but less
than 4 degC (pp 20-21). This is hugely different from the earlier Assessment Report 2007
which merely said that the Greenland ice sheet would lose mass with a warming of 1.9-4.6 degC.
On the renowned website Real Climate (27 September), the scientist Stefan Rahmstorf
pointed out that this 1.9 degC figure was one of the reasons why international climate policy
set 2 degC as the benchmark for dangerous warming. What do these lower temperature figures
for Greenland then imply for what is considered safe? Two, with respect to droughts, the
new report says that the earlier conclusions regarding increasing trends in droughts globally
since the 1970s are no longer supported by more recent research. Having said that, regional
droughts have increased in frequency and intensity, such as in the Mediterranean and west
Africa. Three, the increased loss of ice mass from the ice sheets in Antarctica and Greenland
Page 16
KI
IW
are staggering. The average rate of ice loss from Greenland has increased from 34 billion
tonnes a year over 1992-2001 to 215 billion tonnes a year over 2002-11, over six times
as much! Antarctica ice loss over these same periods has increased from 30 billion tonnes
to 147 billion tonnes a year, nearly five times as much. These huge rises make them qualitatively
different from any earlier IPCC assessment report. First, the supposed slowdown, or hiatus
in global warming in recent years, much discussed in leaks and newspaper editorials before
the Summary was released. The Summary itself says that the slowdown in surface warming
since 1998 is due to natural variability and reducing forcing due to volcanic eruptions (which
throw up particulate matter that tends to cool). Satellite data tells us that the earth's energy
imbalance due to GHGs has continued unabated in recent years. So if warming is not showing
up in surface temperature data, we need to look elsewhere. Over 90% of the excess energy
trapped by GHGs has been going into the oceans; the heat being trapped in the upper oceans
alone (the top 700 metres) each year is over 40 times as much as the total annual energy
consumption in the United States! But what has been exceptional in recent years is the
warming of ocean waters below 700 metres. This has been happening, a recent paper (Balmaseda
et al 2013) suggests, after 1998, precisely the period for which the slowdown in surface
warming is reported. Much of this will show up as warming sooner or later. Two, is CO
2 less potent than we earlier thought? The SPM has reduced the lower limit of the potential
change in global mean surface temperature due to a doubling of CO 2 to 1.5 degC from
2 degC in the earlier assessment report. The scientist Michael Mann wrote ( The Guardian
, 28 September) that this lowered estimate is "based on one narrow line of evidence", the
recent slowing in surface warming, which, as discussed above, is more complex than it
seems. What is more, this IPCC estimation of carbon dioxide's potency is methodologically
incomplete and hence an underestimate - it does not include slow feedbacks such as northward
latitude shifts in vegetation, the melting of the ice sheets in Greenland and Antarctica,
and GHGs releases from warmer oceans (in contrast to their absorbing them currently).
Basically, carbon dioxide may be a lot more potent than we realise. Three, the Summary's
highest estimation for sea level rise is roughly half to little less than one metre by the end
of the century (p 18). This is certainly a step up from the upper limit of 59 cm presented
in the Fourth Assessment Report, but many feel that even this is too low. It needs to be
understood that 20th century sea level rise was largely linear because its main sources
were expansion due to warmer waters and glacial melting. The main sources of 21st century
sea level rise will be melting and ice flows from the great ice sheets on Greenland and
Antarctica, a non-linear process. The world's most famous climate scientist James Hansen
has been saying repeatedly that "non-linear ice-sheet disintegration should be expected
and multi-metre sea level rise [is] not only possible but likely". It is too early to say whether
it is the start of a non-linear trend, but the sharp rise in ice sheet melt five-six times in
this decade mentioned above should set warning bells ringing somewhere. The extent of
sea level rise has obvious implications for the extent of coastal erosion and flooding, the
seepage of salt water into underground aquifers, and the extent of damage during storm
surges, all of which are already being felt in India. Finally, the urgency. It stems from the
fact that we want to avoid crossing dangerous levels of warming, beyond which ecosystem
Page 17
KI
IW
feedbacks that usually cause further warming kick in simultaneously on a scale that would
make it increasingly difficult for humans to control the process. Having a 50% probability
of limiting warming to 2 degC, the Summary says, needs us to limit further emissions from
now until the end of the century to little over 1,100 billion tonnes of CO 2 , and we are
galloping at over 30 billion tonnes a year. Emitting 1,300 billion tonnes would reduce
the likelihood to 33% (p 20). As it is, an increasing number of scientists and ecologists
have been saying that the 2 degC benchmark is way too high, some by looking at historical
palaeoclimatic evidence, others at the severity of current impacts. The mood heading into
climate negotiations in the 19th Conference of the Parties at Warsaw was one of low energy
and expectations, whereas the latest Summary makes clear that the urgency is as pressing
as ever. How bad climate impacts will be beyond the mid-century depends crucially on
the world urgently shifting to a development trajectory that is clean, sustainable, and equitable,
a notion of equity that includes space for the poor, for future generations and other species.
Another reason to cut emissions urgently is the long-term implications of what we are
doing; temperatures do not decline significantly for a thousand years after emissions stop
(Solomon et al 2009). The sooner we cut back emissions now, the less pain we will bequeath
to generations of the foreseeable future.
Evolving a New Internet Governance Paradigm
Sat, Jan 11, 2014
Echelon programme, internet governance, EPW, polity, internet,
This article examines the present state of the internet - its governance structures, economics
and architecture - in light of the US security contractor Edward Snowden's revelations
that lay bare the extent to which the US controls the internet and its ecosystem. Given
that the internet now forms an essential part of the world's communications and commercial
infrastructure, there is an urgent need to formulate a binding international framework to
delineate rights and obligations inter se states as well as between states and individuals
in order to ensure that the internet is used as a tool to promote peaceful exchange of information
for the progress of humankind. The Snowden revelations 1 make clear that the US government
and its allies have been systematically spying on the whole world. This surveillance (carried
out through intelligence organisations such as the American National Security Agency
- NSA and the British Government Communication Headquarters - GCHQ) is all pervasive
- voice calls, emails, secure networks and servers have all been monitored or broken into
- and covers all countries including even close allies of the US (France, Mexico, Germany
among others). Not only are all voice calls and emails monitored on a real time basis, but
this data is also stored for future use. 2 In the post-second world war period, the US formed
the Five-Eyes alliance with the UK, Canada, Australia and New Zealand (formally called
the UKUSA Agreement) as its partners, the key partner being GCHQ of the UK. Its major
activity was that of listening to all global communications through its Echelon programme.
The first is the global telecommunications network. This has been greatly facilitated by
the US being the major hub of the global fibre-optic network, followed by the UK, where
a major part of the trans-Atlantic cables land. 4 The US has used its position as a global
Page 18
KI
IW
hub to force various fibre-optic network operators to give them physical access to their
networks in lieu of landing rights. As more than 80% of global voice and internet traffic
pass through the US, automatically, the US has access to all this traffic. 8 In addition,
as the Snowden slides show, the US has also tapped into global submarine cables. 9 It
was known that through the Echelon programme, NSA and GCHQ had tapped into the
global satellite and microwave communications networks. It is here that the Five-Eyes
alliance is useful - it provides global listening posts for such tapping. The levels of monopolisation
in the internet space allow gathering of global citizens data on an unprecedented level.
11 This cloud data is subject to the US laws that enable surveillance over global citizens.
12 As we now know, the US-based internet majors such as Google, Microsoft, Yahoo,
Facebook and others have partnered with the NSA in various ways. 13 Whether they have
been active partners or have been coerced under the US domestic laws is a moot point
for rest of the world. The third layer of access that the NSA has is through the US companies'
dominant position as proprietary hardware and software vendors. Though the position
of the US as the leading hardware supplier has been weakened in recent years, much of
the network equipment - switches, routers, etc - are manufactured or designed in the US.
It is possible to provide back doors in such equipment which only the company that has
created the design or manufactured the hardware would know. Cyber security is not limited
to surveillance alone. As the attack on Iran centrifuges in Bushehr showed, it can result
in physical damages to plant and equipment. Such attacks can take down a country's grid,
water and sewage systems, cause flooding by opening dam gates and even set in motion
a Bhopal or Fukushima like disaster. The internet economy is monopolised by global corporations
based mostly in the US. This is for a variety of reasons including historical development
of the internet, first mover advantage, etc, and also the ecosystem of the internet largely
run by US companies. The levels of monopolisation of the internet ecosystem are unprecedented
and monopolisation seems to have occurred across different platforms. (a) Cloud services:
Out of the top 10 cloud services in the world today, nine are US-based with the odd one
out based in Germany; four are non-US-based out of the top 30, with only one in a global
South country - Dimension Data, South Africa. (b) Search engines: Google enjoyed a
global market share of over 80% in May 2013 21 and has had a share of over 60% of all
global searches done since 2007. 22 The highest market share for a company based in
the global South was Baidu at less than 1% of the market. (c) Social media: Facebook
had a global market share of 72.4% in March 2013. 23 (d) Voice over Internet Protocol
(VoIP): in internet telephony, Skype enjoyed a market share of 82% in 2011. 24 (e) Amongst
the major internet portals, Google accounted for about 44% of the global internet advertisement
revenue in 2010 (Microsoft at 4%, Yahoo at 8%, Facebook at 3%). 25 The Internet Corporation
for Assigned Names and Numbers (ICANN) controls the global domain name system and
has recognised 17 domain name registrars for top-level domain names. 26 All the most
common top-level domains (TLDs) are controlled by first world institutions with .com
& .net operated by VeriSign, biz operated by NeuStar (both US-based companies), .info
operated by Affilias (headquartered in Ireland), .org operated by Public Interest Registry
(a US based not for profit organisation). 27 The terms of the services provided both by
Page 19
KI
IW
these organisations as well those of the regional (sub) registrars are mandated through
contracts signed with the ICANN. This real estate in cyberspace has significant economic
value and most of it is controlled by domain registrars located in the US. Most of the high-level
domains are also under US legal jurisdiction, as a consequence of the domain registrars
being in the US. This level of monopolisation of governance systems, eyeballs, as well
as advertisement revenue gives these few internet giants massive power at the global level
- both to shape the global narrative/discourse (as they become the dominant sources for
global information exchange) as well as to further entrench their already dominant positions
and global power. Another issue of importance is that of taxation on internet-based activities
and therefore tax revenues. In e-commerce transactions, while the income is generated
in the country where the buyer resides, the taxes are largely paid where the seller resides.
For instance, Amazon pays taxes in the US on e-books sold across the world, and as e-books
can avoid traditional customs duties for import of books - both lead to revenue losses to
the country where taxes would traditionally have been payable. The growth of global e-commerce
is therefore a big threat to the tax revenues of the global South. For the internet to work
seamlessly, domain names, and numerical web addresses and network identifiers need
to be unique; the ability to assign them allows institutional power to be projected over
the internet. Management of these critical internet resources is exercised by a US agency,
the Internet Assigned Numbers Authority (IANA), under contract to the US Department
of Commerce. The IANA contract is currently held by a California-based non-profit ICANN.
28 T Voluntary organisations such as World Wide Web Consortium (W3C) tend (by virtue
of their composition and nature) to be dominated by global North-based corporate interests
and institutions that have the resources to participate in the standard-setting processes.
34 For example, recently, under pressure from the US media companies, W3C has accepted
to discuss introducing DRM in HTML5 standards. 35 In more specific terms, there are
four areas in internet governance that are of concern: cyber security, intellectual property,
content regulation and the control of critical internet resources (domain names and IP addresses).
While the US has been arguing for content on internet to be free from censorship by states,
it wants all content that violates the intellectual property of US companies to be stopped
and has even seized hundreds of such domains. There are two problems with contract-based
internet governance. One is that it has led to privatisation and corporatisation of the internet.
The other is that contracts do not and cannot incorporate "human rights" or "sovereign
rights" - the rights of either individuals or of nations. A bottoms-up internet governance,
as distinct from developing technical standards and protocols, has no legal mechanism
to enforce rights of people, corporations or sovereign rights of countries. Rights stem from
either a country's laws or international treaties. By keeping the internet governance either
under US laws or under "contracts", the US has ensured that there is no effective global
body that can address NSA's invasive surveillance over other governments and people,
and penetration of vital infrastructure of other countries. Neither is there any place for
regulatory principles to be exercised - for example, progressive taxation policies for e-commerce
transactions that would help developing countries. The International Telecom Union that
has jurisdiction over the telecom infrastructure and has tried to raise issues such as cyber
Page 20
KI
IW
security, has been stopped by the US and other developed countries. 36 How can infrastructure
required by every country - for communications and commerce - operate under a contract
from one particular government? Granted, as a pioneer, the US deserves credit; but that
cannot be an argument for control over a vital piece of global infrastructure in perpetuity.
India thereafter (at the 66th meeting of the UN General Assembly on 26 October 2011)
proposed the setting up of a new UN-based body - to be known as the UN Committee
for Internet Related Policies (UN-CIRP) - to act as a nodal governance agency of the internet,
under the broader umbrella of the UN. The committee was to comprise 50 member states
chosen on the basis of equitable geographic representation and to work on the basis of
advisory groups comprising all relevant stakeholders. 39 Post the Snowden revelations,
a number of the organisations connected to internet governance - such as ICANN, IETF,
IAB, the W3C, ISOC and the five regional internet address registries - met in Uruguay
on 7 October 2013 and issued a statement distancing themselves from the US government
and its actions. 40 Under the WSIS resolution, ITU has been given specific responsibilities
regarding the internet. However, the US and its allies have fought to keep internet completely
out of the purview of ITU. In the World Conference on International Telecommunications
(WCIT) held in 2012, Dubai, the US and a number of countries refused to recognise that
ITU could discuss any aspect of internet governance and walked out without signing the
new International Telecommunication Regulations. 41 While it is important that there
should be a global treaty under which internet governance takes place, such a body must
incorporate certain basic principles to be followed by all countries. These principles should
include as a minimum (and in no particular order) the following: (1) Demilitarisation of
the internet: This is crucial towards ensuring that the internet is used for productive purposes
rather than an instrument of warfare. It is essential that the internet be used only for peaceful
purposes and it is necessary that this be recognised by states in a binding and enforceable
instrument. (2) No unilateral disconnection or denial of service to a country/region: Every
country, every society must have the right to connect to the internet and use the same in
accordance with applicable law. There must be no unilateral ability to disconnect a country
or a region from the internet without appropriate global sanction. The internet must be
recognised as a global public utility in a similar way to how telecommunication networks
are traditionally treated. (3) Respect for sovereign rights and determination of scope of
applicability of domestic laws/jurisdiction issues: This forms an essential and possibly
the most contentious aspect of any proposed international treaty given the possible consequences
such recognition of sovereign rights may have on the "monolithic" nature of the internet
(it is argued there may be a Balkanisation or fragmentation of the internet) as well as human
rights related issues such as free speech and censorship. However, it is essential for any
enforceable rights framework that such issues be dealt with at the international level. (4)
Respect for human rights, in particular privacy and freedom of speech: While the specific
contours of the extent to which a right to privacy should be exercised (permissible exceptions,
etc) are matters that could be the subject of consensus, it is worth noting that the principle
itself is established as a part of customary international law. Privacy rights are recognised
by the constitutions of over 80 countries and numerous international instruments including
Page 21
KI
IW
the Universal Declaration of Human Rights (A 12) and the International Covenant on Civil
and Political Rights - ICCPR (A 17). Further, global treaties such as the ICCPR already
deal with the human right to free speech and its applicability and enforcement in a global
context for example, through the recognition of permissible derogations. These could form
the basis of any such protection for human rights in the context of the internet. It is essential
to institute some form of international cooperation to ensure uniformity of minimum standards
as well as to put in place an appropriate enforcement mechanism. (5) Other issues such
as access for all and recognition of access as a matter of right, non-interference with signals/packets
during transit, net neutrality, transparency of governance mechanisms. (6) Need to ensure
peaceful dispute resolution.
Misplaced Optimism on a New Regulator
Sat, Jan 18, 2014
gram sabha, environment, EPW, regulator, environment regulator,
On 9 January, the Supreme Court directed the government to establish an environment

regulator at the national and state levels by 31 March. The regulator will evaluate projects
on environmental aspects, regulate their clearance, monitor compliance of the conditions
it sets for projects and penalise violators. Initial reports suggest that environmentalists
have, by and large, welcomed the apex court's orders. It is anybody's guess if the agency
proposed in 2010 would have improved matters. But as things stand, the environment ministry
has neither the skill nor the political will to evaluate projects properly. Projects either get
caught in the bureaucratic maze or are cleared in haste. State pollution control boards are
beset by a similar malaise. They have rarely shown the will to punish polluting outfits.
The so-called autonomous and independent state environmental impact assessment (EIA)
authorities have become sinecures for retired bureaucrats who do nothing more than hold
monthly meetings where projects are cleared almost as a ritual. Most EIA reports are doctored
in the project proponent's favour. Environmentalists believe that this state of affairs will
improve once a regulator is in place. The sorry plight of the environment in the country
is not due to a lack of government agencies or laws. In fact as we have seen, there are one
too many. What hobbles environmental governance in the country is dearth of political
will and a slipshod attitude to accountability. It is somewhat surprising that in rolling
out the red carpet to the regulator, environmentalists are missing out on an institution that
many of them champion elsewhere: the gram sabha. A lot of the rot in environmental governance
stems from the insincerity with which we have gone about in meeting an essential requirement
of EIA: gram sabha consent for projects. Gram sabhas were meant to make people participate
in the decision-making process and approve projects at the village level. But the requirement
of gram sabha consent has become somewhat of a formality for project proponents, in
some cases just a minor irritant. Gram sabha meetings are held only in name; often minimum
attendance is somehow cobbled up or people bullied into giving consent to a project. But
there have been times when gram sabhas have given us lessons in democracy. In Niyamgiri
recently, gram sabha rejection has meant the Odisha government cannot push the boundaries
of the law to favour the mining giant, Vedanta. People in Niyamgiri showed that robust
Page 22
KI
IW
democratic institutions negotiate environmental issues far better than administrative or regulatory - ones. One option to improve environmental governance then may be to
strengthen the capacities of the gram sabha and make the administrative institutions responsive
and accountable to these local bodies, rather than add one more institution, law or regulator
to an already crowded and inefficient system.
We Have Overcome
Sat, Jan 25, 2014
polio, EPW, science & tech, health,
After successfully eradicating smallpox in 1980, India has now gone three straight years
without reporting any new case of poliomyelitis infection ("polio"). This qualifies it to
receive the World Health Organisation's (WHO) certification for being polio-free. Undoubtedly,
this is a victory that has been fought every inch of the way by myriad agencies on a number
of fronts and against what seemed like insurmountable odds. The lessons learnt are precious
beyond words and the expectation is that these will be harnessed to fight other infectious
diseases that plague the country. In fact, the "how" of the war on polio - for a war it was
- is as fascinating as educative. There is though some controversy about whether polio
really has been eradicated in India and there are warnings about a possible return. There
is also the remaining challenge of treating and rehabilitating those who have already been
crippled by the disease. In the mid-1990s the vaccination programme that was undertaken
involved the government, United Nations bodies, charitable organisations and private donors.
While coordinating the activities of all these agencies was a humungous task, the vaccination
programme itself called for dealing with fears and prejudices - social, religious and cultural
- and the physical logistics of reaching every nook and corner of a vast country. The task
was even more difficult in the high-risk states of Bihar and Uttar Pradesh which also witness
large-scale outmigration. Nearly two million vaccinators not only went to slums and villages
but also provided their services at railway stations, bus terminals and construction sites
as well as at fairs and other public gatherings, apart from making house to house visits.
Religious and community leaders were persuaded to preach and cajole where parents were
afraid of vaccination even as the media, college students, volunteers, film stars and celebrities
were roped in to popularise the campaign. The expectation now is that this strategy and
the mechanisms that have been put in place can be used to tackle other diseases like measles
which claim thousands of under-five lives and even to push for 100% immunisation of
children against the major infectious diseases. Of course, vaccination is not a cure-all solution
for all infectious diseases. There are other aspects of public health like provision of sanitation
and supply of potable water that need to be addressed and are as important as, if not more
so than, vaccination. There are alarming signs, however, in reports that a suspected increased
dosage of polio drops in India has given rise to cases of non-polio acute flaccid paralysis
(NPAFP). While the cause of the NPAFP cases is disputed, a number of doctors and health
activists have pointed out that the government's surveillance data shows that in the past
13 months, 53,563 cases have been reported. The government attributes this to more sensitive
and vigilant surveillance and not to the increased vaccination dosage. The fact remains
Page 23
KI
IW
that along with those who are already the victims of polio, this huge number of NPAFP-affected
need treatment and rehabilitation. As the battle against a number of other health issues,
notably the fight to bring down the maternal mortality rate shows, the link between increased
public awareness and discourse and the political will to deal with them is a strong one.
For the well-being of its children, India simply cannot afford to forget the lessons it has
learnt in its battle against polio.
A Hare-brained Proposal
Sat, Jan 25, 2014
bank transaction tax, EPW, economics,
But India now has one of the lowest incidences of income tax among countries of comparable
size and at a similar stage of development. The tax kicks in at an income of Rs 2 lakh a
year, or as high as 34 times per capita monthly income and if one assumes a family size
of five then at almost seven times the average monthly family income. Of course, all
this has not prevented large-scale tax evasion. As is well known, only 2% of Indians now
pay personal income tax, while it is 20% in China and 8% in South Africa. The proposal
on the party's drawing board is to abolish all direct taxes (personal income tax, corporate
tax and wealth tax) and all indirect levies other than customs duty (excise duty, value-added
tax, sales tax and cesses) and have a single tax of 2% on all bank transactions. Simultaneously,
high denomination notes will be demonetised and it will be illegal to have any cash transaction
larger than Rs 2,000. In the BJP's internal estimate, a 2% bank transaction tax will yield
as much as the central government's current gross tax receipts of Rs 14 lakh crore though
Gadkari has claimed that the receipts could even go up to Rs 40 lakh crore a year. . First
of all, like the sales taxes and excise duties before the era of value-added tax (VAT), a
single bank transaction tax would be a cascading tax that would have distortionary effects
on the economy. An additional fallout could be the generation of a parallel currency or
a series of IOU notes between businesses that can be used to avoid the bank tax. The non-business
entities in the economy like households and other non-business institutions will also move
away from the banking sector. If so much of the economy now revolves around the cash
(illegal) economy and evasion, how will a ban on cash transactions of more than Rs 2,000
possibly persuade the entire economy to route most transactions through the organised
financial sector? Indeed the opposite may happen. What the central government will then
find to its horror is that an even larger part of the economy will have shifted to cash to
avoid the new tax and with that tax revenues will plunge. Second, the proposed levy will
also be regressive. Since it will be a cascading tax, its actual incidence on any good or
service would depend on the number of stages of production the good passes through.
If the poor make their purchases from small outlets that cannot afford to vertically integrate,
the tax would be even more regressive. Such a regressive tax may appeal to the likes of
the business-politician groups pushing the BJP and that may indeed be why they are thinking
of it, but it goes against the basic tenets of taxation and is not in the interests of the majority.
A third major problem with the BJP proposal is that it will play havoc with centre-state
financial relations. The party should surely be aware that there is a constitutional division
Page 24
KI
IW
of responsibilities between the centre and the states and so also a division of powers of
taxation. The proposal to abolish all taxes, including sales tax, means that the one major
independent source of revenue for the states will be taken away. One must also note that,
side by side, the transition to the goods and services tax, on the introduction of which so
much hope has been placed, will have to be abandoned. There is indeed much that is wrong
with the existing tax system of both direct and indirect taxes. In spite of many years of
tax reform, the system remains extremely complicated, opaque and discretionary. The
tax bureaucracy uses its powers of discretion and the only groups to benefit are the lawyers
and accountants.
A Monetary Policy Rule for Emerging Market Economies
Sat, Jan 25, 2014
emerging market economies, monetary policy, EPW, economics,
The currency crisis sweeping emerging market economies (EMEs), which has compelled
Brazil, Turkey and Indonesia to tighten policy rates amidst collapsing growth, merits revisiting
the application of two widely held economic policy formulations, namely the Mundell-Fleming
"Impossible Trinity" and the "Taylor Rule" of monetary policy. According to the impossible
trinity, a country can have only two of the following three: a fixed exchange rate, monetary
independence and free capital flows. A free monetary policy means that it is free to respond
to the domestic business cycle. The Taylor Rule is a rule-bound - as opposed to discretionary
- monetary policy by which the central bank adjusts its short-term policy interest rate based
on a mathematical formula using differentials between a country's potential GDP and
actual GDP, and between the inflation target and actual inflation. The Taylor Rule and
its variants are now used by almost all advanced country central banks Monetary policy
in developing countries, on the other hand, is in addition constrained to respond to the
external financial cycle, which distorts the application of the Taylor Rule. Thus, if domestic
growth concerns warrant low interest rates, a sudden stop in capital inflows may induce
them to keep interest rates unduly high to attract foreign capital, thereby magnifying the
downturn in the business cycle. In EMEs, where currencies are not freely convertible,
and where financial systems are much more tightly regulated, the counterpart of this debate
has for long centred on the impossible trinity. Only domestic deficits can be backstopped
by their central banks. Their external deficits are denominated in international reserve
currencies, for which they are dependent on market support. Many EMEs, including India
but with the notable exception of China, have, like advanced economies, also chosen to
have independent monetary policy and free capital flows. Their exchange rates float mostly
freely on the current account, and to a great extent also on the capital account, with most
of the capital restrictions imposed on residents rather than non-residents. This is because
of the need to attract and conserve foreign capital: putting restrictions on external investors
makes the latter less willing to bring in capital if it is not be allowed to be repatriated at
will. Amongst the major EMEs, China has famously chosen a combination of a fixed exchange
rate, monetary independence and closed capital account. While there are few formal restrictions
on capital inflows, since China runs a current account surplus this effectively means that
Page 25
KI
IW
the central bank mops up as much dollars from the market as required to maintain more
or less a fixed nominal exchange rate against the dollar Its real effective exchange rate
(REER) against the dollar has been depreciating continuously on account of relative productivity
shifts. Under persistent criticism and pressure from the US, China has, of course, depreciated
its nominal exchange rate against the dollar slightly from time to time, even as its REER
continues to remain significantly undervalued.
A Matter of Life and Death
Sat, Jan 18, 2014
social, EPW, maternal mortality rate, women,
The announcement by the Registrar General of India that the maternal mortality rate (MMR)
declined by 16% in 2010-12 as compared to 2007-09 is good news. The MMR, which
is the number of maternal deaths for every 1,00,000 live births, dropped from 212 in 2007-09
to 178 in 2010-12. But the decline is not yet cause for celebration since maternal deaths
continue to be very high and India remains among the poorest performers, lagging behind
Bangladesh and Nepal. There are, however, a few factors that indicate a silver lining. The
gap between the worst- and best-performing states is narrowing albeit at a slow pace. The
symbiotic bond between the issue gaining prominence in public discourse and the political
will to tackle it is also growing. The latter though certainly could do with much more heft.
On the negative side, all the factors that contribute to preventable maternal deaths remain
strongly present: anaemia in women, early marriages of girls, the generally poor nutritional
status of women and the overall discrimination against girls and women. All these need
to be tackled along with addressing the medical factors that cause maternal mortality. Credit
for the reduction in the MMR is usually given to the increasing number of institutional
deliveries under the Janani Suraksha Yojana (JSY), an intervention under the National
Rural Health Mission (NRHM) that has been implemented since 2005. This centrally-sponsored
programme, which has a focus on states with a high MMR, gives cash assistance in institutional
deliveries, provides post-delivery care to the mother with the accredited social health activist
(ASHA) acting as the link between the mothers and the institutional system of care. How
aggressively the state governments pursue the implementation of the JSY and buttress
it with their own schemes are the factors that seem to ultimately matter the most. The gap
between Assam, the worst-performing state, and Kerala, the best, has narrowed according
to recent figures though it continues to be huge. Kerala shows the lowest MMR at 66,
followed by Maharashtra at 80 and Tamil Nadu at 87. Assam leads with 328 deaths (390
in 2007-09) followed by Rajasthan at 255 (down from 318), Bihar, Jharkhand and Uttar
Pradesh. Generally, in terms of the status of the girl child and the woman, the latter states
are worse off than the three best-performing ones. Maharashtra, for example, has trained
staff intensely in how to handle delivery cases. It has earmarked free ambulance services
for pregnant women while increasing the number of ambulances available for emergency
services. It is also aiming to have doctors in the ambulances to cater to emergency cases.
Kerala's enviable record was aided not only by the quality of care in its relatively well-equipped
public hospitals but also by the state-sponsored Ammayum Kunjum scheme which runs
Page 26
KI
IW
alongside the JSY the main reasons for its high MMR are that 80% of Assamese women
suffer from anaemia and an appreciable number of maternal deaths are due to septic abortion
and eclampsia (convulsions in a pregnant woman suffering from high blood pressure perhaps
followed by coma). Early marriages, little spacing between pregnancies, unsafe abortions
due to unwanted pregnancies and lack of access to health services along with the medical
causes of maternal deaths require interventions at the right juncture and over a sustained
period of time.
Critical Look at the Narayana Murthy Recommendations on Higher Education
Sat, Jan 18, 2014
social, EPW, Narayana Murthy Committee Recommendations, education,
Narayana Murthy Committee (NMC) through the lens of corporate social responsibility
(CSR). Engaging the corporate sector, both public and private, in higher education being
the focal theme, the article seems to be using public-private partnerships (PPPs) a group
of business models, philanthropy an act of benevolence and CSR a compulsory social
service as synonyms, at least in operational terms. The participation of private parties
in higher education in India dates back to the days of the British raj. 2 However, after
Independence, the ability of the private sector to provide the infrastructure necessary for
development was doubtful and so the government took higher education into its own hands
(Kumar 2013: 613) although a good number of educational institutions, known for philanthropy
and quality education were established by private parties. 3 The economic crisis towards
the end of the 1980s and subsequent adoption of the New Economic Policy (NEP), characterised
by liberalisation, privatisation and globalisation in 1991 added to the impetus for the private
sector to view higher education as a potential venture. The participation of private parties
in higher education revolves around the issues of availability of resources and the poor
quality of publicly-funded higher education, barring certain pockets of excellence. In such
a favourable policy environment, the private sector has grown to cater to 59% of total enrolments
in higher education and is expected to contribute significantly in achieving the target of
30% gross enrolment ratio by 2020-21 (GoI 2012b). The NMC, on one hand, recommends
free land and tax exemptions for the universities set up by the corporate sector but on the
other hand, demands exceptions from reservation policies in admission. It states (GoI 2012a:
4) (1) hike in fees by publicly-funded institutions to meet targets of own resource generation
as put forward by the Punnayya Committee (1992-93), and (2) relatively higher fees charged
by private providers to cover cost of providing education, even without profit. The growth
of self-financing courses, mostly professional and technical in nature and having better
job prospects, in publicly-funded institutions coupled with the emergence of private providers
have made the market for higher education dwelling on fees paid by the students. The
rising cost of education, if not regulated, encourages profiteering which, in turn, induces
cost of education to rise for students and minimisation of cost of operation by the providers.
The former restricts the access to education undermining the concerns for equity and the
latter leads to compromise with quality. Above this, the NMC recommends fiscal incentives
for the private corporate sector. 7 While independent regulation sets the floor for standard
Page 27
KI
IW
of education and independent accreditation acknowledges the level of competence to be

comparable with other institutions, independence from them may distort the equivalence
of qualifications and undermine the signalling effect of higher education, characteristics
which make higher education eligible for privatisation If an institution chooses an accreditation
agency, it suggests self-interest elements creeping into the process which can jeopardise
the whole purpose. The NMC seeks to propose new kinds of institutions into the already
hierarchical higher education system. 10 The monopolistic competition among them also
emanates from their geographical location and institutional characteristics and objectives.
The NMC proposes institutions, private universities with central university status and PPP
universities, that would add to the diversity of the market with varying institutional structures,
objectives and operations with almost no regulation and full autonomy. Private institutions
of higher education often advertise their association with foreign institutions and visiting
foreign faculty to signal quality. Whether this adds to the quality of education is not certain
but these attributes are used to justify charging higher fees from students. The NMC recommends
recruitment of foreign faculty along with Indian faculty for the new private institutions.
Consequently, the quality of higher education may or may not improve but greater commercialisation
and negation of social equity would be achievable, if so desired. 11
The Arab Uprisings and the Question of Democracy
Sat, Jan 11, 2014
arab uprisings, EPW, international, Middle East,
Although much has been written about the "Arab Uprisings" of the recent years, there
is hardly any consensus on anything about it. Yet, ever since Mohamed Bouazizi set himself
on fire on 17 December 2010 in a small Tunisian town of Sidi Bouzid, it caused reverberations
in west Asia that did the unthinkable - successfully toppling autocrats like Ben Ali (Tunisia),
Hosni Mubarak (Egypt), Ali Abdullah Saleh (Yemen) and Muammar al-Gaddafi (Libya),
from what seemed to be the unquestioned seat of power, it also sparked significant regional
protests in Syria, Bahrain, Saudi Arabia, Morocco and Algeria, with an alacrity that took
everyone by surprise. While the concrete implications of this on the Arab world will become
apparent only in the fullness of time, it has already put the west Asian studies in an acute
crisis. the events of the late 1980s and early 1990s in west Asia: states like Jordan (1989),
Yemen (1993), Algeria (1990) conducted their first parliamentary elections in years, while
Syria enlarged its parliament to include 60 seats for "independents" in 1990 and Saudi
Arabia in 1992 introduced a written basic code and set up a 60-member consultative body
( Majlis-e-shura Coming on the heels of the end of Cold War and accompanied by what
Huntington called "third wave of democracy", these events brightened the prospects of
democracy in the region and the euphoria it evoked led to the evolution of the "democratisation
paradigm", which underlined not the possibility but, in its exaggerated optimism, inevitability
of democratisation in west Asia. democracy is a balance between state and the independent
classes, in which state should neither be autonomous of these classes nor captured by them.
The former should be strong enough to tax, but the latter should not be weak enough to
acquiesce without demanding representation. It was only after a long struggle in which
Page 28
KI
IW
the middle classes handed out a decisive defeat to royal absolutism that there emerged
the rudimentary system of representative democracy in these European countries, governed
by three of its most essential criteria: free and fair competition (whether political or economic);
inclusive participation of all classes; and lastly, a modicum of civil and political liberties
sufficient to ensure the integrity of political competition and participation. That there is
a definite democratic deficit in west Asia is beyond reasonable doubt in democratisation
studies. Even within this inter-paradigm debate, the fundamental point of difference is
not that there is no democracy in the region, which is an indisputable fact, but only that,
given the conditions, it is reasonable to consider that states are in transition towards democracy
or whether they are, as suggested by the opponents, moving towards autocracy. If only
the success of these regimes, despite the fact that many of them suffered serious lack of
legitimacy, remains the fundamental premise of the paradigm of authoritarian resilience,
then the fall of these autocrats cast a serious doubt on the validity of this paradigm. If
the paradigm of authoritarian resilience is being questioned, it does not mean vindication
of democratisation paradigm simply because none of the actors or prerequisites that it
deems indispensable are relevant in these uprisings. The fact that crucial actors like the
traditional opposition parties and civil society groups were as much surprised by the uprisings
as the ruling elites were is a clear indication that the former suffers from lack of legitimacy
as badly as the latter.
Architecture of Surveillance
Sat, Jan 4, 2014
EPW, centralized monitoring system, polity, online censorship, Surveillance,
The media reports about the relentless snooping on a young woman by the Gujarat police
and intelligence agencies at the behest of a very high dignitary, the Radia tapes and the
petition on privacy before the Supreme Court (SC) filed by Ratan Tata all indicate intrusive
surveillance by the Indian state's agencies domestically. The new jewel in the crown is
the centralised monitoring system (CMS). Every call made either from a landline or mobile
phone can be listened to and its location fixed. All text messages, emails and searches
on the internet can be collated and analysed. In April 2013, the United Nations' Special
Rapporteur on the Promotion and Protection of the Right to Freedom of Opinion and Expression
cited the Indian state's CMS as threatening to "take communications surveillance out of
the realm of judicial authorisation and allow unregulated, secret surveillance, eliminating
any transparency or accountability on the part of the State". "Citizen Intelligence Network
(CIN) allowing residents to participate actively in the intelligence gathering mechanism
to help prevent terrorist strikes in the country" The Intelligence Bureau's (IB) official
staff strength is not big but the number of stringers and informers it employs is huge. Snooping
is so endemic that a few years ago the finance minister feared that the home ministry was
monitoring him! Such a policy seems eerily reminiscent of practices by the infamous East
German Stasi, an entity to which India had some of its closest intelligence ties during the
period when it was close friends of the Soviet Union and its Council for Mutual Economic
Assistance (COMECON) satellites. The East German Ministry for State Security, better
Page 29
KI
IW
known as the Stasi, kept a close watch over East German citizens through the use of hundreds
of thousands of formal employees and unofficial informants, to the point where virtually
every block of flats, office, factory, or anywhere people met together for leisure was home
to at least one Stasi informant (Cook 2011). The SC established privacy as a penumbral
right, enshrined in the Constitution. Privacy is not explicitly listed as a fundamental right
but is an essential component of Articles 19 and 21. Article 19 protects the right to freedom,
although it states that it does not "affect the operation of any existing law, or prevent the
state from making any law, insofar as such law imposes reasonable restrictions on the
exercise of the right". Article 21 establishes the right to "Protection of life and personal
liberty", guaranteeing "No person shall be deprived of his life or personal liberty except
according to procedure established by law". Despite debates on an inadequate and pending
Privacy Bill (2011), India does not have legislation examining the right to privacy, particularly
in electronic communications, but over time the SC has recognised a qualified right to
privacy. On the other side, the government's surveillance powers were created by the Indian
Telegraph Act (1885). The colonial legislation allows central and state governments to
intercept messages if their content compromises public safety. Similarly, Section 69 of
the Information Technology Act (2000) allows for exemptions to privacy protections if
the content of the information otherwise protected compromises the sovereignty or integrity
of India, defence of India, security of the state, friendly relations with foreign states or
public order or for preventing incitement to the commission of any cognisable offence
relating to the above or investigation of any offence. The Information Technology (Procedure
and Safeguard for Interception, Monitoring and Decryption of Information) Rules (2009),
Rule 3 states no person can intercept, monitor or decrypt information, except by an order
issued by the competent authority. With regard to censorship, the Information Technology
(Procedures and Safeguards for Blocking for Access of Information by Public) Rules (2009)
blocks public access to computer information. The Rules emphasise that the Indian state
can restrict or prohibit access to information for reasons connected to state security and
integrity and positive interstate relations. In addition, Section 66A of the Information Technology
Act as amended in 2008 establishes a punishment of imprisonment for a term that may
extend to three years for "sending offensive messages through communication service,
etc". The information pertains to content that is "grossly offensive" or "has menacing character"
or causes annoyance or inconvenience. Similarly, in 2011, the Department of Information
Technology announced implementing rules which mandate online service providers to
remove and restrict information which is "grossly harmful", "disparaging", "harmful to
minors in any way", or "threatens the unity, integrity, defence, security, or sovereignty
of India". The overall legal framework has been criticised for affording to the state broad
powers of censorship and allowing the use of modern technology for surveillance purposes.
This documentation corresponds to a recently released report by Index on Censorship in
November 2013 documenting the increasing restrictions on online expression in India
through online censorship, criminalisation of online speech, surveillance, and barriers
to internet access (Patry 2013). he SC initially explored the right to privacy in the Kharak
Singh vs the State of UP (1962), AIR 1295, December 1962. The case involved police
Page 30
KI
IW
surveillance that included The judges were divided over the outcome of the case, with
some expressing a more expansive view of the right of freedom of movement from surveillance
while the majority being more restrictive that only domiciliary visits were unconstitutional
because of the infringement of the right to freedom and that there was no general right
to privacy. The right to privacy, specifically the legal validity of wire or phone tapping
and whether potential evidence is legally admissible was examined in Malkani vs State
of Maharashtra (1972), AIR 157, 1973. The SC held that there was no violation of the
petitioner's rights in that case. The SC located the right to privacy as a constitutional right
in Govind vs State of Madhya Pradesh (1975), AIR 1378, 18 March 1975. It held privacy
to be intrinsic to an individual's protection of life and personal liberty as enshrined in
Article 21. It is not absolute and can be "subject to restriction on the basis of compelling
public interest. But the law infringing it must satisfy the compelling state interest test"
This right was elaborated by the SC in the Maneka Gandhi vs Union of India (1978) .
It held that while rights can be legally restricted by a procedure prescribed by the law,
the proscribed procedure cannot be "unreasonable and arbitrary". Ultimately whether a
right is improperly infringed upon turns on "whether the fundamental right is really involved
in a particular case and whether a restriction upon its exercise is reasonably permissible
on the facts and circumstances of that case". Laws infringing the right to privacy are subject
to judicial scrutiny and must be balanced against public interest. The International Covenant
on Civil and Political Rights (ICCPR) (1966), Article 17 stipulates that "no one shall be
subjected to arbitrary interference with his privacy, family, home or correspondence, nor
to attacks upon his honour and reputation". Centrally, "everyone has the right to protection
of the law against such interference or attacks". Somewhat more expansive, Article 8 of
the European Convention on Human Rights stipulates, The European Court of Human
Rights (ECHR) in X and Y vs the Netherlands (1985) held that the right to privacy contains
positive and negative obligations: Any restriction on this right must fulfil a number of
requirements: it must be in accordance with the law, have legitimate objectives and be
necessary in a democratic society. In Kruslin vs France (1990) the ECHR examined surveillance
and held that "it is essential to have clear, detailed rules on the subject, especially as the
technology available for use is continually becoming more sophisticated". In Kopp vs
Switzerland (1998) , the European Court held that to be in accordance with the law Towards
Surveillance India's creeping move towards surveillance and censorship should give us
all pause and reflection, if for no other reason than to ensure that the country does not follow
the path of the East German Stasi or the totalitarian state in George Orwell's Nineteen
Eighty-Four . The edifice of a police state in India continues to be constructed brick by
brick and may be accelerating. There appears to be a slow, insidious security creep on
all aspects of citizens' lives, even beyond the long history of abuses by unaccountable
intelligence agencies that are not under the active control of Parliament, the Comptroller
and Auditor General of India or any other democratically accountable body.
Page 31
KI
IW
What Happened at the Bali WTO Meet and Why
Sat, Jan 11, 2014
bali, WTO, EPW, economics, trade facilitation,
The industrialised countries along with a group of advanced developing countries, including
China, left no stone unturned in harvesting, at Bali, a WTO agreement on trade facilitation
(TF), an agreement that is meant to simplify customs procedures and ease the flow of goods
across borders. Although TF forms part of the Doha body, the manner in which it was
plucked out from the DDA single undertaking constitutes an important victory for the
United States (US) and the European Union (EU). Without having to deliver on agriculture,
which was to be the engine of the Doha trade negotiations, or the "developmental" benefits
promised to the least developed countries (LDCs), the trade elephants succeeded in pushing
through a grand but grossly unequal Bali package. Without making any "payment" in the
other two pillars - agriculture and development - of the Bali package, the industrialised
countries have walked away with a prize that can allow them to close their eyes to the
need to rescue the larger 12-year-old DDA. The proclaimed goal of the first "multilateral
TF agreement" since the creation of the WTO in 1995 is "to simplify customs procedures
by reducing costs and improving their speed and efficiency". In reality, the new agreement
streamlines market access in developing countries and LDCs, and further expands the
WTO's remit into domestic policy governance. Azevedo, when he was the trade envoy
representing Brazil at the WTO, had argued that TF was nothing but market access for
industrialised countries. It is another matter that as the WTO chief he campaigned on a
war footing for a binding agreement. The Bali declaration candidly admitted that there
are no legally binding outcomes in the agriculture and development pillars of the package.
There are four issues - general services, public stockholding for food security purposes,
understanding of tariff rate quota administration and export competition - in the agriculture
pillar. And then, there is the issue of trade-distorting subsidies for cotton (provided mainly
by the US) that has been hurting some of the poorest countries in Africa and has not been
addressed since the Hong Kong Ministerial Meeting of 2005 which called for an "ambitious,
expeditious, and specific" outcome to help the cotton farmers in Benin, Chad, Mali and
Burkina Faso. In the development and LDC areas, four issues have been pending since
2005. They include preferential rules of origin for the poorest countries, operationalisation
of waiver concerning preferential treatment to services and services suppliers in LDCs,
duty-free and quota-free market access for these countries, and a monitoring mechanism
on special and differential treatment flexibilities. None of these issues were comprehensively
addressed in Bali and nothing was treated on par with TF. Dividing Countries The Bali
conference provided an early glimpse of what is likely to happen at the WTO. The run-up
to the ministerial meeting as well as the proceedings at the conference brought to the fore
several inconsistent practices that were adopted to divide the developing and LDCs, and
prevent them from adopting common positions on TF and public stockholding programmes
for food security and other issues of interest to them. Focus on Trade Facilitation The 31-page
TF text basically prescribed how developing countries and LDCs While the industrialised
Page 32
KI
IW
countries are not required to make any legislative changes for these disciplines as they
already have them in place, the developing countries and LDCs are required to make many
legislative changes as well as create new physical infrastructure. The TF agreement is
structured into two sections. Section 1 sets out all the new comprehensive binding disciplines
that developing countries and the LDCs are required to implement. Section 2 contains
the road map for implementing commitments by these groups of developing countries
in Section 1, based on technical and financial assistance and a phased time frame. Though
the developing and the poor countries sought internal "balance" between the comprehensive
binding commitments in Section 1 and the provision of financial and technical assistance
to developing countries and LDCs, the language in Section 2 is ambiguous and non-binding
as regards the financial commitments by the industrialised countries.
Page 33

EPW January

Transféré par

Informations du document

Copyright

Formats disponibles

Partager ce document

Partager ou intégrer le document

Options de partage

Avez-vous trouvé ce document utile ?

Ce contenu est-il inapproprié ?

Droits d'auteur :

Formats disponibles

EPW January

Transféré par

Droits d'auteur :

Formats disponibles

KI

Rightward Drift in Nepal

From Movement to Government

Disabled by Lack of Political Will

Poverty-Hunger Divergence in India

FDI in India - Ideas, Interests and Institutional Changes

Climate Change, Uttarakhand, and the World Bank's Message

Rescue Package for Power Discoms

Parliament, State Legislature and Bifurcation

The IPCC's 'Summary for Policymakers'

Evolving a New Internet Governance Paradigm

Misplaced Optimism on a New Regulator

A Monetary Policy Rule for Emerging Market Economies

Notes by vineetpunnoose on www.kiwipaper.com

Critical Look at the Narayana Murthy Recommendations on Higher Education

The Arab Uprisings and the Question of Democracy

What Happened at the Bali WTO Meet and Why

Notes by vineetpunnoose on www.kiwipaper.com

Maoist Defeat in Nepal The Price of a Missed Opportunity

Sat, Jan 25, 2014

EPW, international, nepal,

Notes by vineetpunnoose on www.kiwipaper.com

Sat, Jan 25, 2014

EPW, international, nepal,

Notes by vineetpunnoose on www.kiwipaper.com

Notes by vineetpunnoose on www.kiwipaper.com

Sat, Jan 18, 2014

EPW, international, Bangladesh,

Notes by vineetpunnoose on www.kiwipaper.com

Sat, Jan 11, 2014

Khobragade affair, EPW, international,

Notes by vineetpunnoose on www.kiwipaper.com

Sat, Jan 4, 2014

politics, EPW, polity,

Sat, Jan 11, 2014

Disability rights, social, EPW,

Notes by vineetpunnoose on www.kiwipaper.com

Sat, Jan 11, 2014

hunger, poverty, social, EPW,

Notes by vineetpunnoose on www.kiwipaper.com

Sat, Jan 18, 2014

FDI, EPW, economics,

Climate Change, Uttarakhand, and the World Bank's Message

Sat, Jan 4, 2014

environment, EPW, climate change,

Notes by vineetpunnoose on www.kiwipaper.com

Notes by vineetpunnoose on www.kiwipaper.com

to visit relatives and see new places.

Sat, Jan 25, 2014

EPW, power, discoms, economics,

Notes by vineetpunnoose on www.kiwipaper.com

Notes by vineetpunnoose on www.kiwipaper.com

Sat, Jan 11, 2014

environment, environmental laws, EPW,

Sat, Jan 18, 2014

Andhra Pradesh, telengana, EPW, polity,

Notes by vineetpunnoose on www.kiwipaper.com

Notes by vineetpunnoose on www.kiwipaper.com

Sat, Jan 11, 2014

mains, environment, EPW, ipcc,

Notes by vineetpunnoose on www.kiwipaper.com

Notes by vineetpunnoose on www.kiwipaper.com

Notes by vineetpunnoose on www.kiwipaper.com

Notes by vineetpunnoose on www.kiwipaper.com