16 THE ECONOMIC TIMES The Edit Page THE ECONOMIC TIMES | BENGALURU | WEDNESDAY | 14 JUNE 2017

Economic Data CURSOR Attacks on democracy offer a chance to build and expand the freedoms India lacks

Deceive To Dispirit
Economy in finer fettle than what IIP indicates
The data are dispiriting. The good news is that they are
Finders, Not Yet Keepers lar ability to hold parts of the state to
account break down. When Christi-
deceptively dispiriting. Consumer prices for May show ans are attacked for proselytisation,
inflation at the lowest level since 2001, at 2.18%. A good
harvest, in combination with the lingering effects of the
minority rights are breached. When
Dalits are attacked by socially more The Seat
powerful groups and the state fails to
disruption of rural financial linkages by demonetisa-
tion, has pushed food price changes into negative territo-
prevent or penalise such attacks, not
just the rule of law but equality befo-
of Power
re the law also breaks down.
ry. This, naturally, has caused distress on the farm. Capi- TK Arun SRI SRI RAVI SHANKAR
tal goods production has shrunk in April, as compared to Democracy in the Making

W
A ministership purports to
the year-ago level. Basic and intermediate production, In those parts of India where sec-
e Indians tend to be a serve the people. However, if it
tions of the people challenge the aut-
little too glib about our is perceived as a means to

FILE PHOTO
too, dragged. All manufacturing output has grown by on-
hority of the state, such as in Kash-
democracy. We take it derive pleasure or prestige, it
ly 3.1% in April, marginally faster than the 2.7% growth mir, the Northeast and the tribal
for granted, assume it will only infest society with
of March. If prices and industrial data alone mattered, belts of central India, individual
not just exists but is re- corruption, stymie growth
we are staring at a picture of stagnation. Fortunately, rights and liberty are abrogated not Its not just about waving it from the stands
newed whenever elections take pla- and lead to moral degradation.
just of the militants but of ordinary
ce. Some even believe we have an ex- Fear and insecurity will grip
there are other indicators that tell a positive story. people as well.
cess of the stuff, slowing down deci- henian democracy. Europe had to go sign and build a room yourself, you society, inhibiting humanness.
Agricultural output is bound to register a healthy When a member of the higher ju- through wrenching revolutions, know what it is for. When you stum-
sions and suffocating reforms, in It is natural for human beings
growth, when the numbers are totted up. The fall in pri- diciary pronounces, in court, the multiple rounds of them, to achieve ble upon a room that you never knew
contrast to China, which makes up to want to overcome fear and
cow to be his mother, he puts perso- universal adult suffrage. Women got you could enter, you might be intimi-
for its deficit of democracy with ra- insecurity. Most will do almost
ces reflect, in part, bumper harvests in many commoditi- nal values and custom in place of the the right to vote much later. Black dated into staying out.
pid growth and popular enrichment. anything to feel secure. Conse-
es. That apart, freight movement and fuel consumption law of the land he is dutybound to up- Americans continued to be disen-
In reality, does India qualify as a The good news is that sections of quently there is a struggle for
are definitely on the rise, signalling hold. This is as much breakdown of franchised till after the civil rights the traditionally excluded are asser-
democracy? Regular elections to the seat of power. However,
the rule of law as a legal dispute ta- movements of the 1960s. Even today, ting their right to be part of national
form a government, multiple parties those who hanker after power
increased economic activity. The Rail- king decades to be settled beyond fi- some southern states make it diffi- life on an equal footing. The Dalits
that compete and a multiplicity of are really powerless. They can
ways earnings from moving passeng- nal appeal.
media outlets are necessary parts of cult for black people to register as vo- are an obvious example. But they en- accomplish very little even
ers and goods are up more than 9% in Individual liberty is rviolated ters, leave alone take part as equal ci- counter violence, as in Una in Guja-
a democracy, but not sufficient ones. after coming to office. The
when undertrials languish in jail for tizens in public life.
Protection of fundamental rights of rat and in Sahranpur, in UP. irony is that even after assu-
May, as compared to May 2016. The to- years, only to be pronounced not gu-
individuals and groups and the rule Muslims are being intimidated ming the seat of power, they
tal cargo handled at major ports was ilty by the courts later, after their yo- Challenge and Opportunity
of law, active participation of the ci- out of a key traditional occupation, remain fearful. In fact, the fear
up 5.56% in May, in volume terms. uth and vitality have drained out of Democracy must be understood as of butchering animals for meat.
tizenry in public life, apart from in- increases manifold. If you are
them and their dear ones have passed an evolving system of expanding Transportation of cattle, whether le-
stitutional dispersal of power and in fear and tension you cant
Growth in container movement was on, broken by grief, if not old age.
the ability of the people, the ultimate rights of the ordinary people. Its defi- gally or illegally, runs the risk of vio- come up with creative ideas
even greater. Fuel consumption in the economy went up India is better understood as a de- ning virtue is that its governance lent death at the hands of vigilantes.
sovereign, to hold all arms of the sta- so you cant do much, either
by 5.4% in May. Demand for diesel, the bulk fuel, went up mocracy in the making, rather than structures offer the space for people The sale of cattle for slaughter now
te to account are other essential in- for society or yourself.
as a full-fledged democracy. And this to add to and enhance their realised stands banned by fiat.
gredients of democracy. On these, we Often you hear ministers
8%, while the demand for petrol rose 15.9%. These volu- fall short. is not a particularly uncommon rights. In theory, this should be easi- These are instances of extreme threatening to resign if they
me growth figures have finally recovered from a demone- thing in the history of nations.
When groups take the law into the- er in India than it was in the countri- violation of democracy. But they are dont get their way. It is ir-
When the American revolution es that first secured democracy. Indi- also invitations to expand democra-
ir hands, and beat up individuals or responsible to take pride in
tisation-induced slump in demand.
produced its first constitution and ans got their democracy gift-wrap- cy by resisting them. The resistance
even kill them, the rule of law disap- resigning from ones post.
True, the economy is not powering ahead as it should, provided for elections, about 6% of ped, when they got Independence.
pears. When teachers appointed to could take multiple forms, ranging This is not sacrifice; it is the
to generate the jobs Indias demography calls for. Nor is it the population qualified to vote. Sla-
village schools play truant and get If democracy were a building with from legal challenge to popular pro- act of renouncing a sacred
ves, women and those without pro- many rooms, Europeans had to test. Organising such resistance is a
away without being sacked, citizen duty assigned by the people.
faltering. What can transform this middling growth is a
perty did not qualify. Just like in At- struggle to build those rooms one by way of building democracy and lea-
participation in public life and popu- Ministership is not a luxury
big push to investment, particularly, private investment. one, before occupying them, whereas dership credentials. which you can take pride in
That is hobbled by the twin-balance sheet problem: bad Indians already had those rooms de- Democracy has to be earned, thro- renouncing. Similarly, con-
signed for them by Europeans and ugh struggle to acquire and enforce ferring a ministerial post on
loans on the banks books and unserviceable loans weig- No nation has achieved democracy without struggle built for them by the framers of the rights. Whom does this challenge someone is to expect and
hing down India Inc. It is welcome that the government Constitution, but still have to train beckon, is the question. demand their best service it
and Indians deceive themselves if they think their themselves to move into them. This is not to be construed as a
and the RBI are taking steps to tackle this. Resolution of
bad loans and freeing up banks to resume lending hold
battle was won when they got Independence in 1947 is not all that simple. When you de- tk.arun@timesgroup.com reward.
Once you realise your innate
the key to vigorous growth of the economy. power, you dont need a seat or
position to serve the people.
HEALTHCARE You can do better without a
formal post as did Mahatma
Gandhi. Often a ruler is not a

Let Competition Set Showing a Healthy Interest

reformer and a reformer
doesnt rule.

Fair Prices Under GST healthcare is addressed in India.

A key aspect is that public health
for diseases worldwide. Here, India
has the dubious distinction of
gramme: the National Training for
Universal Screening and Control
Chat Room
Chief Economic Advisor Arvind Subramanians reported expenditure will increase to 2.5% having the second-largest popula- of Common NCDs. This aims to
suggestion to have a sunset clause in the anti-profiteering ru- of GDP in a timebound manner.
This was long overdue. Moreover,
tion of smokers in the world.
In 2010, to address the situation,
cover about 50 crore people. It aims
to have everyone above the age of Crop Insurance
le under the Goods and Services Tax is welcome. The rule crea-
tes an oversight authority to ensure that producers and servi-
in a pronounced skew towards
preventive healthcare, GoI also
and with a view to get India heart-
healthy, the Billion Hearts Be-
30 years screened in 100 districts of
the country in the first phase.
is Important
ce providers pass on reduced tax burdens to consumers. This Preetha Reddy announced its plans to convert its ating Foundation was set up. Now Gradually, it will cover the entire Apropos Not by Unaffordable
holds potential for abuse and would lead to disputes. Ideally, 150,000 healthcare centres into to move quickly towards preven- country and around 500 million Farm Loan Waivers (Jun 13).
health and wellness centres that tion, it is imperative that we the people, so that timely intervention The Centre has rightly cautio-
the rule must be scrapped. The second best option is to set a de- Over the last three years under the would offer a broader and more public and the private sector can reduce the countrys disease ned state governments that it
adline nine months to a year for its withdrawal. The idea of present government, healthcare, comprehensive package of servi- work together seamlessly to ensu- burden. will not finance loan waivers.
enforcing the rule initially is to help consumers get the benefit along with other key social deve- ces through this network. This is re that NHP 2017 succeeds in its GoI has stated that neither the Such waivers hurt credit
of lower prices during the transition to the new tax system. lopment sectors, has started to recognising the fact that keeping a preventive agenda and saves the private sector nor the government discipline and put government
move centre stage in Indias mind nations citizens healthy helps the many lives at risk. has the capacity or resources to finances in disarray. Neverthe-
Retail prices will come down as GST subsumes indirect taxes space. Under the Swachh Bharat nation realise its full potential. It is encouraging that as this respond to healthcare needs alone. less, political parties vie with
and cuts out the cascade of multiple taxes that products bear, Abhiyan, there is now a concerted Current numbers suggest that by government settles down into its NHP 2017 has, thus, effectively each other to offer waivers
lowering production costs. The govern- effort towards greater hygiene. 2020, as many as 300 million-plus fourth year in New Delhi, the created a framework to foster a ahead of polls. They need to
ment must amend the Central GST law to Concrete steps are being taken to individuals will be at risk of dying Union health ministry has an- long-term partnership between the look at the nub of the problem
ensure availability of clean drin- from non-communicable diseases nounced another important pro- public and private enterprise. The of farmers distress and pro-
incorporate a sunset clause to ensure that king water across rural and urban (NCDs). According to the World next steps should involve develo- vide long-term solutions to
the rule is scrapped within a year. It sho- India. Together, these will help Health Organization (WHO), it is ping effective public-private part- make farming profitable and
uld rely on competition and the market India avert preventable deaths NCDs such as diabetes, cardiac nership (PPP) models for the pri- sustainable. Crop insurance
and, hopefully, dire statistics such diseases, respiratory disorders vate sector to participate in go- must also play a bigger role in
mechanism to set fair prices. Allowing
as those reported by the likes of and cancer that are responsible for vernment schemes. mitigating the risks of, say,
easy entry and exit rules will foster com- Unicef such as 1.2 million Indian 60% of deaths in India. In fact, 26% The time has come to add another unseasonal rains or drought.
petition. There is no rationale for yet children dying of preventable of the population between 30 and P in the PPP mix. This new P
another authority to deter price gouging. India has an institu- diseases in 2015 will become 70 years die of NCDs. stands for People, and India should BHOLEY BHARDWAJ
regrettable history. In India, there are over 69 million make every citizen responsible for Mumbai
tional structure, the Competition Commission of India, to
On March 16, GoI took a giant leap diabetics. Diabetes has become the his or her own health, even as
tackle market abuse arising from lack of competition. Let the
CCI probe if there is collusion or abuse of market dominance
by adopting the pathbreaking
National Health Policy (NHP) 2017.
fastest-growing healthcare burden
in India, claiming more than a
Swasth Bharat (healthy India) is a
collective responsibility.
Pick Good
in any industry. It is wholly redundant to propose, say, a body After a hiatus of nearly 15 years,
this new policy promises to be a
million lives a year. In addition, the
global tobacco epidemic is the The writer is vice chairperson, Apollo
Teachers
under the Central Board for Excise and Customs to investiga- Apropos Hitch on to the
tectonic shift in the way public fourth most common risk factor At last, to the heart of the matter Hospitals
te cases of flawed competition and failure to pass on reduced Learning Curve by Amit
tax burdens. It could be source of harassment, as industry Malviya (Jun 13). The lear-
apprehends, drawing on past bitter memories. ning outcome-based per-
The tax burden can itself be lowered if the tax base for GST is GLOBALISATION 2.0 formance ranking of schools
is good, but the need is to
widened. This is eminently feasible when large chunks of the improve the student ratio in

How to Cut Across Corridors

economy are included in the tax base and exemptions are kept
to the minimum.
clearly emphasised on cooperation. It
is focused on Asia and Africa and
More study is needed to see if spuds does not bring India or Japan as a
kill: therell be no dearth of volunteers central point. It very much reflects
the new foreign policy plank of
sabka saath sabka vikas (with
defined projects for bettering in-
frastructure across several countri-
es. President Xi Jinping, while pro-
posing the idea of Obor in 2013, came
up with a large infrastructure plan.
Along six economic corridors. seve-
government
schools by
enhancing
quality of
education.
strengths and experiences of Japan Teachers
and India. If quality infrastructure should be
with lesser carbon footprint is an competent
expertise Japan brings to the table, and paid attractive salaries to
India has rich experience with the draw talent. Adopting stan-
Indian Technical and Economic dardised uniform syllabi and

Chips Can Never be Sachin Chaturvedi

everyone, for everyones progress).
Peter Thomson, UN General Assem-
bly, suggested earlier this year that
financing the sustainable develop-
ral infrastructure building projects
would be undertaken.
They would help in consolidation
of trade and investment flows, and
Cooperation (ITEC) programme that
was launched in 1964.
The vision document on AAGC has
detailed three main aspects of con-
credit transfers among all
schools makes sense.

SANJAY TIWARI

Down for Potatoes Prime Minister Narendra Modis

idea of the Asia Africa Growth
Corridor (AAGC), as reflected in the
ment goals (SDGs) of nations will
require annual investments of around
$6 trillion, or $90 trillion over 15 years.
in development projects. The areas
identified are policy coordination,
effective connectivity, unhindered
nectivity physical, institutional
and people-to-people. It also refers to
the linking up of the economies of
Hisar (Haryana)

Given the near universal prevalence of the potato today, it is joint statement with Japanese Prime
curious that there are very few studies to determine any link
Minister Shinzo Abe in November
2016, has got enhanced attention,
between the humble spud and mortality. Now a study publis- particularly in the context of Chinas
hed in the American Journal of Clinical Nutrition this One Belt One Road (Obor) initiative.
month has asserted that those who eat fried potatoes aka But discussions seem to be missing
out on two other similar efforts. One
french fries, tater tots, hash browns, chips etc are more pro- is in the form of German Chancellor
ne to premature mortality than those who consume them Angela Merkels new proposal of a
in other forms. Alarming as this discovery sounds, it is un- Marshall Plan for Africa, evolved
likely that will make Indians forsake their aloo bhujiya and with Germanys G-20 presidency this
year. Two, is the New Silk Road, an
tikkis any time soon. Nor is the market for fried potatoes ex- idea that then US secretary of state
pected to dip in the West either. After all, it is only a correlatio- Hillary Clinton articulated in 2011,
nal study, which experts reassuringly have clarified means and has now been resurrected by the
there was no direct evidence of people dying due to eating fri- Trump administration.
The AAGC is being viewed as a
ed potatoes. It is just that those in the target group all midd- challenge to these three multinatio-
le-aged or old who died during the eight-year period of the nal initiatives from India and Japan.
study ate their potatoes fried rather than any other way. This may not, however, reflect its real
While that link cannot be disregarded, diehard potato fans intention.
Obor or now, the Belt and Road
can rightfully claim that ingested atmospheric pollution is Initiative (BRI), is a highly ambitious
way more harmful than a packet of chips or fries can be. In- project-led, infrastructure-focused
According to the Addis Ababa Action
Agenda (AAAA), the infrastructure
gap among the developing countries
requires $1-1.5 trillion annually. The
AAAA called for raising $100 billion
from market sources to bridge this and
associated gaps by 2020. This effort
was estimated to bring 550 million
people out of poverty.
Chinas BRI is precisely trying to
bridge this gap. Though India has
issues related to sovereignty, there is
little doubt that China has made an
open offer and is undertaking pre-
FILE PHOTO
trade and finally financial integra-
tion. But the big question of Indias
sovereignty concern cannot be
ignored.
Germanys Marshall Plan for for planning and execution of pro-
Africa is close to Modis idea. It talks
of an Africa that is prosperous and
at peace, with development oppor-
tunities for one and all. Very much
in line with Indias priorities, it various actors, according to their
gives emphasis on local jobs and
investment with greater value
addition and less of the exports of
raw material from Africa.
The plan also presses for corruption-
free administration with the right
political environment (read: democra-
cy). However, there is also an effort to
scale down the importance of Official
Development Assistance (ODA).
The trouble with this plan is the
political uncertainty associated with
it. One is unsure whether in the
forthcoming German elections in
Corporate
Asia and Africa through develop-
ment of supporting infrastructure
(port, airport, industrial park,
Governance
telecommunication, IT), capacities Apropos Independent Direc-
tors must be Sackable (Jun
jects, trade facilitation, human 13). The focus should be to
resource development and tech- initiate steps to raise corpora-
nology improvement. It is expected te governance. Sacking by
to be achieved with participation of special or ordinary resolution
is an expression of a break-
needs and strengths. down and symptomatic of
These new ideas around specific entire boards failing to do
corridors are bringing in new global their job in the selection,
governance models, where one may appraisal and graceful easing
think of new structures. With their out of non-performers. Com-
multiple actors functioning under mentators rarely highlight
multiple configurations with a the basic weaknesses of board
high degree of flexibility and en- committees and the overall
hancing scope for global joint action, board performance. That
and less emphasis on ideological leaves the regulator and
divides this is about moving tribunals to tackle issues
beyond the Equatorial divide. In an relating to the failure of
era of stalled multilateral talks, corporate governance.
Brexit and Trumps protectionism,

depth research using larger, more diversified groups is cle- initiative. It keeps Beijing and other
parts of China as source of origin.
arly needed to ascertain whether potatoes (and momos) real-
Modis speech, at the board meeting
ly do kill. And it is unlikely that there will be a dearth of vo- of the African Development Bank
September, this strategy will get
endorsed, if the current incumbent
fails to return to power.
Obor! You know what cow dung is in The idea of AAGC, on the other
this may be a way forward. R SRINIVASAN
Chennai
The writer is director general, Research
and Information System (RIS) for
Letters to the editor may be addressed to

lunteers to try out Indias favourite tuber in various forms. (ADB) in May 2017 at Ahmedabad, Hindi, Abe-ji? hand, has evolved with specific developing countries, New Delhi editet@timesgroup.com