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Wednesday, 13 October 2010

Will Wen’s India visit be a success? (PO)


M D Nalapat
During the last quarter of 2010, the Heads of Government of all the P-5 (Permanent Five in UN Security Council) will have visited India. The first to land in Delhi was UK Prime Minister David Cameron, who made an excellent impression in India, in contrast to some of his predecessors. Next followed US President Barack Obama, who created history by setting in stone the foundations laid by George W Bush of a US-India alliance. Next has come President Sarkozy of France, a country that even during the dark days of the Clinton administration was friendly to India (in contrast to the UK, which followed the Clinton line as faithfully as a poodle). On December 15,Premier Wen Jiabao of China comes calling, followed a week later by Russian President Dimitry Medvedev.

Friday, 8 October 2010

Why should a democracy block Islamic banking? (PO)

M D Nalapat

Although efforts have been made over the past twenty years to bring Islamic banking into India — a country that has more Muslims than Pakistan — as yet the Reserve Bank of India and its master, the Union Finance Ministry, has not given permission for the same. The reason is simple. Across the financial establishment in India, the influence of US and EU financial interests is overpowering. Several senior civil servants have their close relatives working in such institutions, and therefore accept the advice given by them. Certainly, banks in foreign countries will not want the Indian government to clear the way for the establishment of Islamic banking centres, for that may result in funds flowing from Zurich, London, Frankfurt and New York (all major “Islamic” banking locations) to Mumbai or Kochi. Acting on cue, the monetary and finance authorities in India have continued to block access to Islamic banking avenues, thereby denying millions of observant Muslims in India a chance to keep their assets in safety.

As has been mentioned earlier in these columns, the “British” law that boosters of the Nehru family such as Amartya Sen and Sunil Khilnani are so proud of pointing to is in reality English law for colonial subjects, a construct very different from English law for Englishmen. The laws in India give overwhelming powers to the administrative machinery, and no redress to the citizen except through the goodwill of some other governmental agency.Over time, the duration of cases in India has lengthened in a way calculated to resemble the “yugas” of the ancient Indian epics (each of which lasts millions of years). Many civil cases take sixty to ninety years to finally get decided, while in a criminal matter, the final verdict usually comes after the convict has passed away due to old age. Days ago, there was a “superfast” judgment delivered in a Karnataka court against an individual accused of the murder of a software company employee. The time taken was five years, and this is only the first stage. Even at such a “superfast” pace, the appeals process can drag on for fifteen or more years before conclusion. India’s judicial system is now internationally known for the frequency of “stay orders” and the length of time that it takes for verdicts to get delivered.

Friday, 1 October 2010

India-Pak, learn from China’s economy (PO)

M D Nalapat

When Bill Clinton fought against George Bush Senior in the 1992 US Presidential elections, he kept the focus on the economy, going so far as to get coined a motto: “It’s the economy, stupid”, thereby ensuring that his entire team focused on bread and butter issues. Clinton understood that voters vote with their wallets, rewarding those who are seen as promoting prosperity, and punishing candidates whose policies may perpetuate poverty. If Barack Obama got elected as US

President two years ago, a large part of the explanation may lie in the fact that his Republican Party predecessor, George W Bush, created an economic slowdown by going along with policies that promoted uncontrolled speculation and greed in business and banking circles. Even more devastating to US prosperity, Bush Junior ran two wars in the most expensive way possible, funneling contracts to high-cost US suppliers (many close to Vice-President Dick Cheney and other key supporters of his) rather than source materiel from the most cost-effective source, the way the US military operated during the Vietnam war.

Saturday, 25 September 2010

Outsourcing policy to foreign NGOs (P.O.)

M.D. Nalapat


After a gap of more than six years, your columnist is once again in the country that a century ago ran half the world. For years, indeed decades, he has been fascinated with the way in which a small island nation expanded across the globe to secure territory and resources to fuel its prosperity. Some say that much of the cause can be attributed to the spirit of democracy that pervaded the United Kingdom. However, this may be a simplistic view, for the reality is that the UK of the Empire period was a class-ridden nation, where the nobility (both economic and ancestral) had privileges denied to the many. Unlike in France or Russia, where there was a revolution against the aristocracy, the English never revolted against their nobility, except for the brief spasm of republicanism led by Oliver Cromwell four centuries ago. Of course, the difference between Britain and Russia was that in the former, it was much more easy for a low-born person to become wealthy than during the reign of the Tsars. When the nobility monopolised top positions the way the upper castes did in ancient India.

Inequality of income is a fact of life, but if this is accompanied by as severe an inequality in opportunity, then the society concerned becomes brittle and easy to break. In any country where a “caste” system develops, in which power and money get monopolised by a small segment on the basis of birth, there will come a period when such a society can no longer meet the needs and begins to fall apart. Such a danger exists even in the country that is today well on the way to becoming the next superpower, China. Should the Communist Party of China (CCP) get dominated by “princelings” (the children of top party leaders), then the hold of the party over the people will slacken, as will morale and motivation inside the party, which would change into an instrument for the retention of privilege created by birth. Already, a disproportionate share of the top echelons of the CCP comprise of cadres who were lucky to be born of influential parents. If this segment grows at the expense of those (such as current CCP General Secretary Hu Jintao) who were born from humble stock, the rapidly-evolving population of China would begin to lose respect and loyalty towards a party that has made China once again a Great Power.

Friday, 24 September 2010

Outsourcing policy to foreign NGOs (PO)

M D Nalapat

After a gap of more than six years, your columnist is once again in the country that a century ago ran half the world. For years, indeed decades, he has been fascinated with the way in which a small island nation expanded across the globe to secure territory and resources to fuel its prosperity. Some say that much of the cause can be attributed to the spirit of democracy that pervaded the United Kingdom. However, this may be a simplistic view, for the reality is that the UK of the Empire period was a class-ridden nation, where the nobility (both economic and ancestral) had privileges denied to the many. Unlike in France or Russia, where there was a revolution against the aristocracy, the English never revolted against their nobility, except for the brief spasm of republicanism led by Oliver Cromwell four centuries ago. Of course, the difference between Britain and Russia was that in the former, it was much more easy for a low-born person to become wealthy than during the reign of the Tsars. When the nobility monopolised top positions the way the upper castes did in ancient India.

Inequality of income is a fact of life, but if this is accompanied by as severe an inequality in opportunity, then the society concerned becomes brittle and easy to break. In any country where a “caste” system develops, in which power and money get monopolised by a small segment on the basis of birth, there will come a period when such a society can no longer meet the needs and begins to fall apart. Such a danger exists even in the country that is today well on the way to becoming the next superpower, China. Should the Communist Party of China (CCP) get dominated by “princelings” (the children of top party leaders), then the hold of the party over the people will slacken, as will morale and motivation inside the party, which would change into an instrument for the retention of privilege created by birth. Already, a disproportionate share of the top echelons of the CCP comprise of cadres who were lucky to be born of influential parents. If this segment grows at the expense of those (such as current CCP General Secretary Hu Jintao) who were born from humble stock, the rapidly-evolving population of China would begin to lose respect and loyalty towards a party that has made China once again a Great Power.

Friday, 17 September 2010

Does “freedom” mean vote every 5 years? (PO)

M D Nalapat

Till two centuries ago, China comprised about 35% of the global economy while India accounted for around 26%. Only after the grip of European powers became strong in the 19th century that their economies contracted. The mentality of the European powers was that only they had the right to prosperity, while the rest of the world needed to be content as slaves. In India, Britain ensured the destruction of almost all of local industry, thereby seeking to create a market for its own manufactures. Certainly this brought some prosperity to the UK, but the wealth generated there would have been much more had India been allowed to continue to be a prosperous country. The markets for British produce would have been far larger. As for China, by squeezing revenue out of channels such as the opium trade, the European powers ensured the fall of the Imperial Dynasty and its replacement with a series of fractious and incompetent warlord regimes, a phase that ended only with the establishment of the Peoples Republic of China in 1949.

While China entered into its current period of economic growth through reform in the 1980s, till today India has continued with its colonial-era laws, that transfer obligations to the population and authority to the state Today, despite corrupt and incompetent governments at both the central and state levels, the Indian economy is growing at a speed of almost 10% annually, because of the savings of its people and their zeal for education and betterment. India is called a “free” country, while China is authoritarian, with no elections and single-party rule. However, here in Hong Kong, where your columnist has been since the beginning of the week, it would seem that people here have as much - if not more - freedom than people in Mumbai or Delhi, all of whom have to get permission from multiple authorities (usually in triplicate) before being allowed to do the simplest tasks.

Friday, 10 September 2010

Is Manmohan Singh’s time up? (PO)

M D Nalapat

Had Manmohan Singh ended his political career as Finance Minister of India during 1992-96, he would have earned a few pages in the history books as the individual who implemented the 1992-94 economic reforms, which did so much to ensure a higher rate of growth. However, once he took over as PM in 2004, that period was relegated to the background. Whatever be the soft-spoken thinker’s place in history, it will almost entirely get based on his performance as PM. And it must be said that the five years since he took office have been disappointing. Economic reform stalled, while corruption continued to skyrocket. Those tracking the workings of government claimed that the final decision on most issues - especially those involving procurement - were taken by Number Ten ( 10 Janpath, the official residence of Congress President Sonia Gandhi) rather than Number Seven ( 7 Racecourse Road, the PM House).


Although the habitually tame English-language media in India said otherwise, the fact is that the public were underwhelmed by the performance of the Central government. Prices shot up, while urban infrastructure deteriorated. The progress of road construction was slow, while the provision of broadband internet and affordable mobile telephone charges was delayed. The tax structure and the web of government restrictions became ever more oppressive, and yet the much-written about Father of Reform did nothing. Of course, he busied himself in foreign policy, but to the population of India, what matters is the home front, not the fact that Singh and his demure better half were lionized in capitals across the globe. Those who had for long admired the man and saw him as a redeemer felt bitter, and many did not hesitate to vent their frustration in public, although they were of course in a minority. As is their wont, much of the media were fulsome in their praise of the PM, compliments that they bestowed on every holder of that office.

However, since the United Progressive Alliance (UPA) returned to power in 2009, Manmohan Singh changed. Several VVIPs were jailed for corruption, a drive that finally began netting the big fish rather than minnows. Petroleum prices were decontrolled and the money earned from auction of spectrum went up by more than twenty times. It had been no secret that the PM was deeply unhappy at the meagre revenue secured by the auction of 2G, but could do nothing because the political leadership of the party protected the alliance partner responsible. But when 3G began to be auctioned, Singh stepped in rather than keep away the way he had from 2004 to that period, and ensured a huge windfall for the exchequer. Of course, there have been two major failures on his watch, the first being price rise and the second Kashmir. After a flawless election in 2009, the reins of office were handed over to an untested Omar Abdullah, who expected the people of his state to emulate the US electorate and choose good looks over competence. The grandson of Sheikh Abdullah has been a total failure as CM, and ought not to have been given the reins when experienced leaders were available. Omar is considered part of the Rahul Gandhi Brigade, and if so, this first test of fire of this youthful team has been a disaster.

Friday, 3 September 2010

India cannot ignore Myanmar and Iran (PO)

M D Nalapat

As Asian allies of the US know, in making demands - sorry, requests –of them, Washington looks only at what it perceives to be its own short-term advantage. Even if the recommended measure has the potential to have very harmful effects on its ally, the US ignores such an impact, and insists on its advice being followed. Small wonder that except for countries that are host to large numbers of US troops, few Asian countries uncritically follow the line given to them by the US State Department or other branches of the administration. If India has somehow managed to get by in a challenging neighbourhood, the reason lies in the fact that public opinion often forces even pro-US governments to reject advice coming from Washington.

Myanmar was an example of India going along with US and European wishes. For more than ten years, Delhi toed the line taken by these two geopolitical giants, joining them in demanding that Daw Aung San Suu Kyi be released and enabled to take over the governance of the country. It needs to be admitted that this columnist is also an admirer of the charismatic Myanmarese leader, and has been since he was in his teens. At the time - and we are talking of the 1960s - he used to stay in a government residential colony in Delhi named “Maan Nagar”, and used to watch a graceful girl clad in multicoloured lungis visit the home of the Burmese diplomat staying opposite. Even in those days, Suu Kyi was the very expression of grace and poise, who was moreover polite enough to once in a way return the greetings of the scrawny boy who used to look up from his book whenever she visited the neighbour’s quarters. Of course, despite this bias towards Myanmar’s valiant democracy warrior, he is in agreement that India’s geopolitical needs mandate engagement with the regime now ruling that country,and that the adoption of a US-style policy of sanctions would help neither the people of Myanmar nor India’s interests.

Friday, 27 August 2010

A people drowning in red-tape (PO)

M D Nalapat

Under its energetic Vice-Chancellor, Seyed Hasnain, the venerable University of Hyderabad has sought to improve both its image as well as its performance. As a part of the process of modernization that he has initiated, the Vice-Chancellor decided to award honorary doctorates to mathematical wizard David Mumford and World Chess Champion Viswanathan Anand. In India, the Ministry of Human Resource Development seeks to control every operation of a university except perhaps staff visits to the canteen, hence its permission was sought for the award of the honour. Strangely, some within the gargantuan HRD Ministry bureaucracy objected to the award of a doctorate to “that foreigner Anand”, forgetting both that Anand was an Indian citizen and that the other awardee was British. In the arrogant style copied from earlier colonial masters of India, the ministry demanded that Anand “prove that he was Indian”, a step that enraged the chess grandmaster’s many fans in India. Finally, a media outcry led to the HRD Minister himself apologizing for the error. HRD Minister Kapil Sibal is a well-meaning and capable son of the Punjab who is seeking to unshackle Indian education from a ministry that retards rather than promotes human resource development, but instead finding that the reverse is taking place, with more and more controls getting established.

Although the HRD ministry has, in the way usual with the Indian bureaucracy, been secretive about just who was the (hitherto faceless) official who sought to question the nationality of “Vishy”, hopefully this information will soon become public knowledge, once Right to Information queries get filed and processed. However, it is unlikely that the culprit will be punished, or even rebuked, for seeking to humiliate an Indian icon. While power is plentiful in the Indian system of governance, accountability is almost totally absent. For example, none of the many officials who slept for four years over the corruption now exposed in the organisation of the Commonwealth Games has been subject to disciplinary action. Only a handful connected with the Games themselves have been forcibly sent on leave or retired, mainly to ensure that the public stain does not reach higher than them. A country that has 200 million people going to bed hungry each night is estimated to have spent $6 billion on a sporting extravaganza that seems likely to get drenched in unseasonal monsoon showers. Certainly, several well-connected people must have gained immense benefit from such a waste of taxpayer rupees.

Friday, 20 August 2010

With courage, Pak people face Nature (PO)

M D Nalapat

Unlike the catastrophe in Haiti, which was extensively covered in international media, there has been much less coverage of the recent floods in Pakistan, caused by unprecedented rains. In Peshawar, on a single day (July 28) nearly 318 millimetres of rain fell, while the previous record was 217 millimetres - in an entire month. Stretching over 1500 miles and affecting nearly 25 million people, comparisons have been made between this flood and Cyclone Bhola in 1970, which hit then East Pakistan. However, while Bhola led to an estimated 300,000 deaths, the loss from the present disaster has thus far been contained at less than 2000 directly dead, although illnesses and accidents can push this figure higher during the coming weeks. Thus far less than $500 million have been pledged by foreign countries for flood relief, although close friends of Pakistan such as Turkey and Saudi Arabia can be expected to match the US contribution, thus far the biggest. Both governments need to launch an immediate appeal within their citizens to donate money for the floods, funds that should flow through agencies that have a good track record of effectiveness in their operations.

Where in 1970 it was East Pakistan that was hit, this time around the primary damage has been done in the Baloch and Pashtun territories of Pakistan. Major infrastructure has been destroyed, and livelihoods lost. The international community will need to locate $ 5 billion of civilian assistance each year for three years, if Pakistan is to regain the assets lost in a few deadly weeks last month. Although Pakistan’s main ally, the US, has given large amounts of assistance since the 1950s, the overwhelming bulk of this has gone to the military, a situation that is expected to continue under the Pakistan-friendly trinity of Secretary of State Hillary Clinton, Defense Secretary Robert Gates and CIA chief Leon Panetta, two of whom are loyalists of Bill Clinton, while the Defense Secretary is a George W Bush pick. Although Candidate Obama sought to distance himself from the Washington DC Beltway, once elected President, he ensured that his administration is 70% Clinton, 20% Bush and 10% Obama in its composition, one reason why the gloss seems to have disappeared from Barack Obama, who promised change but has thus far delivered a warmed-over version of the past two decades.

Friday, 13 August 2010

Sonia Gandhi scripts Kashmir policy (PO)

M D Nalapat

Far and away the most powerful person in India, Congress President and United Progressive Alliance Chairperson Sonia Gandhi wields the most power within the Manmohan Singh government, and in any conflict of views between her and the PM, it is the latter who usually gives way, because of Gandhi’s total control over the legislative and organisational machinery of the Congress Party. With a preference for meeting important visitors in the book-lined study of her government-provided home at 10 Janpath in New Delhi, the “CP” is invariably gracious and warm to her V VIP guests, though she always makes her own preferences known, and expects that they will be carried out. In the matter of policy towards Kashmir, the CP’s lead advisor is regarded as being Chief Information Commissioner Wajahat Habibullah,a close friend of the Peoples Democratic Party heiress Mehbooba Mufti. Very different from his father, a distinguished officer in the Indian army known for his leftist views and strong sense of secular nationalism, the suave Wajahat believes that the Government of India should walk an extra thousand miles in order to satisfy the aspiration of the Sunnis in the Kashmir Valley for “Azaadi”. He regards it as part of Indian diversity that a regime get established in Kashmir that would bring into its governance structure several of the elements of Sharia law, and where the Sunnis of the Valley would put in place policy that gives them the central place in the entire state, despite the presence within it of a majority of Buddhists, Hindus, Sikhs, Shias, Gujjars and others.

Given the close proximity of CEC Habibullah to Gandhi, it is no surprise that this is the very policy that the Congress Prime Minister is seeking to pursue in Kashmir. Three days ago, Manmohan Singh went on national television to deliver a speech that even mentioned the word “azaadi”, although he had to suffix it with the remark that any solution had to be within the confines of the Constitution of India. It was the last remark that led to the numerous pro-Pakistan elements within the Kashmir polity rubbishing the PM’s offer, and demanding nothing less than a Kosovo-style independence from Delhi. Indeed, several within the Valley believe that it is only a matter of time before NATO forces - together with troops from the OIC countries - land in Kashmir and give them the freedom they so passionately seek. While such expectations had sharply subsided during the period when the BJP-led government was in power, the “Habibullah Line” on Kashmir that is being pursued since 2004 has led once again to a steep rise in the number of those who believe that if there is enough mayhem on the streets, international intervention will follow. Chance remarks by foreign diplomats - who seem drawn to Kashmir the way ants swarm towards honey - have only fed such expectations, thereby resulting in the present massive show of Street Power by tens of thousands of Valley Sunnis.

Friday, 6 August 2010

India’s Corruption Games 2010 (PO)

M D Nalapat

The only two countries in the world that each have a billion-plus population are India and China, and there is corruption in both. However, the difference is that even dishonest officials in China seek ways of implementing approved policies, in the process, earning some money on the side. However, in India, so far as the huge army of corrupt politicians and officials is concerned, the entire objective of decision-making is to earn money. In the process, if some good gets done, that is entirely accidental. So, whereas in China the making of money is a by-product, with the focus being on ensuring results, in the case of India, results are the (rare) by-product. The sole objective behind each decision is to make money, as much of it as is possible.

During the first five years of the present Sonia Gandhi-led United Progressive Front government in New Delhi, then Union Finance Minister Palaniappan Chidambaram (now Union Home Minister) greatly increased the powers of the tax collection and regulatory agencies, so that these days, they are as operationally unaccountable to the public as was the case during the years when India was ruled by the East India Company. The stock market regulator - the Securities and Exchange Board of India, or SEBI - passes a slew of orders that either bar some companies from doing any business or help other entities in theirs. On record, there seems to be very little justification for either step, so clearly the actual reasons are such as to be invisible to the naked eye. The Reserve Bank of India (RBI) curries goodwill in financial markets in the European Union (the only location that the RBI’s colonial-era higher-level team respond to) by repeatedly raising interest rates and accelerating the very inflation that they profess to reduce.

Friday, 30 July 2010

Why “hawks” carry the day in India (PO)

M D Nalapat

Although many within the subcontinent point to the simillarities, the reality is that by the dawn of the 21st century, at the least the Indian and Pakistani militaries have developed two very different cultures. Especially from the 1970s, the effort in Rawalpindi has been to look westwards, at the Arab countries, Turkey and Iran to bring together the elements of a Pakistan identity. India and its culture and history have been left behind, even while elements of it - such as Mohenjo Daro and Taxila - show that the land of Pakistan has hosted civilisations that were world leaders two millenia ago. Since the period of General Mohammad Zia-ul-Haq, there has been a steady congruence between the culture of Saudi Arabia and the ethos of the Pakistan army, even though in Pakistan as a whole Sufi remnants remain strong. Even these days,in the local cultures, there is an emphasis on Pirs and Makhdooms, concepts alien to Saudi Wahabbism.

Even had he been denied any assistance from Washington, General Zia would still have sought to help the Afghan mujahideen. Indeed, there is evidence that units of this Pashtun militia were formed in Pakistan soon after the USSR invaded Afghanistan in 1979. The plan of then US National Security Advisor Zbigniew Brezesinski to defeat Moscow by the giving of assistance to the mujahideen was based on advice given by GHQ Rawalpindi to contacts in the Pentagon in the beginning of 1980. Of course, Brezezinski may never admit to following any advice not given by his friends from Europe!.

Friday, 25 June 2010

Nirupama Rao comes calling in Pakistan (PO)

M D Nalapat

Unlike more conservative societies such as Saudi Arabia, which prize uniformity and discourage diversity, India prides itself on its mosaic of faiths and peoples. The food, dress and attitudes in an eastern state such as West Bengal is very different from that in the northern state of Rajasthan. The first has had a Communist government in power since the 1960s,while the latter still respects the Maharajas whose kingdoms were taken over in 1947 and who - despite having signed a binding covenant with the Government of India at the time – were deprived of their titles and much of their wealth in 1969 by then Prime Minister Indira Gandhi, to whom the only law that mattered was her personal whims.

Even nearby states are very different. Maharashtra (where Mumbai is situated) is one of the most poorly administered states in India, where even the police are more likely to side with lawbreakers than with law-abiders. This was on international display less than two years ago, when a few scruffy youngsters held the city to ransom for three days after having come ashore from Karachi. The reaction of the Mumbai police (except for a very few instances of personal courage) would have made Inspector Clouseau of Pink Panther fame look serious. That it took more than 72 hours to clear them away from just three buildings revealed the sorry state of preparedness of Mumbai against a terror attack, in contrast to Pakistan, where action against desperados has been swifter. In contrast, the next-door state of Gujarat has a super-efficient government that ensures one of the highest rates of economic growth in India.

Friday, 18 June 2010

Cost of an Indian life $500 (PO)

M D Nalapat

Prime Minister Rajiv Ratna Birjees Gandhi’s political future was permanently darkened by the 1987 revelations about illegal payments made for purchase of Bofors guns. At the time, there were suggestions that the media frenzy in India was being fuelled by leaks from a competitor of Bofors that had lost the gun contract. Whatever the source, the information about illegal payments was so detailed that Rajiv Gandhi spent his last two years in office firefighting, his effectiveness eroded despite an overwhelming majority in Parliament. The Bofors wave resulted in the Congress Party’s defeat in the 1989 Lok Sabha (Lower House) elections,resulting in the formation of a government headed by Rajiv’s former Defense Minister V P Singh, whose main campaign slogan was that he would bring the guilty to book within a year.

Of course, nothing of the kind happened. As soon as V P Singh began to occupy the Prime Minister’s spacious office in South Block, his enthusiasm for Bofors died, perhaps because quite a few of his allies were also implicated in the scandal. Instead of seeking to clean up the administrative machinery of the Government of India (where people turn from paupers to billionaires in a year’s time), V P Singh decided to let loose caste fury across the country, by pushing for a higher reservation for “Backward Castes” in government jobs. This group ranks just above Dalits in the traditional Hindu hierarchy (which incidentally is largely followed by Christians and Muslims as well, who are each divided into “high”, “middle” and “low” castes, although not on paper. The resultant uproar led to his resignation and replacement by political rival Chandra Shekhar, who in his turn was quickly overthrown by Rajiv Gandhi, who sensed that his party could return to power in the elections. The Congress Party did get close to a majority in 1992,but this was due to the sympathy wave that followed the assassination of the young leader by the LTTE, in revenge for his having sent an Indian military force to Sri Lanka four years earlier.

Friday, 11 June 2010

No visas for S Asia media dialogue (PO)

M D Nalapat

Wafting through the corridors of North Block, the abode of India’s sprawling Home Ministry, are rumours that Congress President Sonia Gandhi wants a more youthful face to her loyal government than the 77-year old Manmohan Singh, and that her choice is the athletic 64-year old, Palaniappan Chidambaram, who was shifted from Finance to Home after the 26/11 Mumbai attacks in 2008. The new minister in charge of internal security shares with the current Prime Minister the advantage (in Sonia Gandhi’s eyes) of having a zero political base, thus being unable to pose any political challenge to the Nehru dynasty, which was ruled the Congress Party (and usually the country) since the 1930s. Should Chidambaram be appointed PM, he is unlikely to repeat Sri Lankan President Mahinda Rajapaksa’s feat of replacing the Bandaranaike family’s control over the Lankan ruling party with that of his own clan. Congress office-bearers say that the Congress President’s instruction to her new Home Minister was simple: prevent another terrorist attack, so as to prevent the BJP from staging a comeback on the back of public insecurity.

Chidambaram, who in his other life is one of the country’s top lawyers, knows that he has to deliver, and his chosen way has been to reinforce the system of bureaucratic control that he had favoured while Finance Minister from 2004 to 2008. During that time, he ensured that sweeping powers were given to the Income-Tax Department, so that in today’s “democratic” India, any taxman can - in his subjective estimation - accuse a citizen of evading taxes by concealing income, and freeze bank accounts and take over property. Several such actions have been taken out of the purview of courts by modifications in the rules introduced by Chidambaram, not that the courts in India can be expected to deliver justice in a single lifetime. For example, the Bhopal phosgene gas leak caused 15,000 deaths and more than 117,000 serious illnesses in 1984. Only last week (26 years later) has a token sentence of 2 years in jail been awarded to the officers of Union Carbide, the US company that operated the Bhopal plant. Naturally, the convicted officers all got bail immediately after the verdict, and went home to their families, even as the Bhopal victims still writhe in pain and starve because several are physically unable to work.

Friday, 4 June 2010

Communists face defeat in India (PO)

M D Nalapat

Visitors to China will go to book stores without seeing a single copy of the works of Karl Marx and Friedrich Engels, the authors of the “Communist Manifesto”. In contrast, should they visit India, several bookstores carry the works of the two, while in cities in Bengal and Kerala, communist literature is plentiful. Jesef Stalin and Vladimir Lenin may have been tossed aside in Russia, but not in these two States, where even today, they are lovingly commemorated in conferences and even in curricula. Indeed, the first place where a communist party came to power in a free election was Kerala, which elected the Communist Party to office in 1957, only to have the central government dismiss it in 1959,after an agitation led by the Catholic Church that was backed by the daughter of Prime Minister Jawaharlal Nehru, Congress President Indira Gandhi. Soon afterwards, in 1967, the Communists were back in power, not only in Kerala but also in West Bengal.

Nationally, the only time that Communists have held office was during 1996-97, when the Home portfolio was looked after by Indrajit Gupta. Indeed, there was even a prospect of India getting a Communist as Prime Minister, something that would have choked off the economic liberalisation that has powered this country’s ascent since the 1990s. Luckily for the economy, a section of the Marxist leadership sabotaged the chances for West Bengal Chief Minister Jyoti Basu to move to Delhi, thus clearing the way for the Karnataka leader H D Deve Gowda to take charge, although only for a year. After that, the high point of Communist and Marxist influence in the central government came in 2004,when the government led by Manmohan Singh was forced to depend on the 61 MPs of the Left to ensure a majority in Parliament. In the 2009 polls, the Red bastions fell, and today, the two Communist parties are once again sitting on the outside, except in Tripura, West Bengal and Kerala States. While the Communist parties (the pro-Moscow Communist Party of India and the pro-Beijing Communist Party of India-Marxist) have both won and lost elections in Kerala, in Bengal they have been continuously in power for more than three decades, a record of longevity only equalled by the Congress Party, which was in office in India from 1947 to 1977 without facing defeat. The long years of “Red Rule” have changed the culture and mindset in Bengal, pushing to the sidelines the courtly, aristocratic culture that has for hundreds of years been the hallmark of the Bengali. In days past, visitors to Kolkatta (then named Calcutta) would marvel at the charm and politeness of every local citizen he or she encountered, from taxi drivers to hotel receptionists to shop assistants. They were matched in good behaviour only by the old Lucknow aristocracy, which to this day retains the formal traditions of the Mughal Court.

Saturday, 27 February 2010

FM Qureshi seen as Army favourite (PO)

M D Nalapat

Although as yet far behind in quantitative terms, the Indian elite see their country as China’s equal. While rates of growth have decelerated in China since the 1980s,they have accelerated in India. And like Pakistan, the second most-populous country in the world has a young population, while China’s is ageing. By 2027, the effect of this is expected to boost India’s prospects of catching up with what will at that time be the world’s largest economy (in Purchasing Power Parity terms), China. Hence it was with anger that South Block, the home of the Prime Minister’s Office and the Ministry of external Affairs, heard of Pakistan Foreign Minister Shah Mehmood Qureshi’s “blank cheque” to the Chinese Communist Party to mediate the Indo-Pakistan dispute.

Earlier, US President Barack Obama had made a cringing visit to China, during which he had generously made to the Chinese leadership the offer first made by Bill Clinton 13 years earlier, of partnering with Washington in “managing” India-Pakistan relations. That offer had led to the mistrust of Obama that today pervades the Indian establishment Why did Foreign Minister Qureshi make such a statement just two days before Foreign Secretary-level talks between the two sub continental neighbours? He would certainly have been aware of the strong Indian distaste of involving any country in the bilateral tango between India and Pakistan, especially China, which since 1963 has been aligned with Islamabad in its bid to limit Delhi’s freedom of action. There are three theories doing the rounds within Raisina Road, the Indian Beltway.

Saturday, 20 February 2010

Subdued reaction to India-Pakistan talks (PO)

M D Nalapat

Besides the current Prime Minister, Manmohan Singh, India has had three PMs who were very much in favour of reaching out to Pakistan. The first was Morarji Desai, the austere Gandhian from Gujarat who became the first non-Congress PM of India in 1977. Morarji began the day drinking a cup of his own urine (and, perhaps for unrelated reasons, remained spry and fit throughout his 99 years). He was a pacifist who, as Finance Minister under Jawaharlal Nehru, reduced budgets for India’s military during 1959-62, a factor which experts believe helped cause the defeat of the Indian army at the hands of the Chinese. As Prime Minister, he refused to intervene in the matter of the imprisonment and subsequent execution of Z A Bhutto by General Zia, publicly saying that this was an internal matter of Pakistan’s. He refused Israel permission to use Indian facilities for a pre-emptive strike on Pakistani nuclear installations, and withdrew all Indian intelligence networks from Pakistan, a factor that probably contributed to his getting the Nishaan-i-Pakistan. Indeed, during his brief period in office, the Indian external intelligence agency Research & Analysis Wing (R&AW) was sharply reduced in size and scope.

The next PM who was very friendly to Pakistan was I K Gujral, the pipe-smoking Jhelum-born Punjabi intellectual who took over in 1997. He enunciated the Gujral Doctrine, which held that as South Asia’s largest country, India should make the most sacrifices for peace. As PM, Gujral ordered a halt to all offensive covert activities in Pakistan, a decision that even today impacts India’s capabilities in its western neighbour. It was during his time that visa procedures for citizens of Pakistan were first relaxed, and some people-to-people interaction took place after fifty years of freeze. After him, the BJP’s A B Vajpayee belied the rhetoric of his party by becoming very friendly to Pakistan, especially to Mian Nawaz Sharif, for whom he had a strong bond of affection. Vajpayee saw Sharif as a man of peace, and came to Lahore in a bus in 1999,creating the hope that peace was at hand. However, the absence of the then Army Chief Pervez Musharraf from the Vajpayee-Sharif Lahore Summit was an ominous sign, that was followed by the Kargil operation and the coup against Sharif. After Kargil, Vajpayee no longer felt confident enough to continue with the peace process, although he did go ahead with two unilateral cease-fires in Kashmir, that were used by the Jehadis to consolidate their position.

Saturday, 13 February 2010

Why colonial law for “free” citizens? (PO)

M D Nalapat

 Until General Zia-ul-Haq sought to align Pakistan culturally with Saudi Arabia in the 1970s by changing the laws of the land in a way that became closer to that country, Pakistan too had the same system of British colonial law as India. In the satisfaction at the “European” standard of such laws, what is forgotten is that the laws passed by the British in their Indian colony were not the same as those that were enacted for citizens of the UK. Instead the laws passed in India were designed for colonial subjects, and hence gave disproportionate power to the state authorities and very little rights to the citizen. Because of the potential for generating bribes and patronage that such British-era laws bring, political leaders in India have thus far refused to liberalise the laws in a manner that ensures that citizens of India cannot get persecuted by the state,the way they were under the British Raj.

In India, an Income-tax officer has the power to take away property and even liberty on the basis of a subjective decision, as was the case when the British were masters of the subcontinent. Several of the actions of the Income-tax department have been kept outside the purview of the court system, so that the citizen needs to appeal only to other officials to get redress. Thanks to such vast powers, it is easy for the government of the day to intimidate people, especially those with High Net Worth. Of course,even relatively poor and honest taxpayers can get harassed by the Income-tax department, especially if the order to do so has come - orally of course - from powerful politicians and the officials who toady to them. In India, there are many former Chief Ministers (of Indian states) who are in politics. Almost all of them have become super-rich, but only those who fall foul of the present governmnent have been subjected to searches and seizure of wealth. The others remain protected by their connections. Recently,there were raids on the residence of the former Chief Minister of Jharkhand state,Madhu Koda, an individual who has no contacts with India’s influential media fraternity. According to the authorities,about $1 billion was recovered, in the form of foreign bank accounts. While the figure may look large,the reality is that Madhu Koda is a poor man when compared to the immense wealth acquired by some other former Chief Ministers,several of whom are in office under the very dispensation that arrested Koda (because he was a political inconvenience to the government). Had every former Chief Minister been raided and investigated, it would have been a matter for congratulation. However, what the nation saw was a few being punished, while the many escaped.

Wednesday, 10 February 2010

Hidden hand poisoning ties between India and the West? (UPI Asia)

Manipal, India — Quiet surveys conducted through multiple sources indicate that the root of the spasms of "curry bashing" – violent attacks on Indian students – seen in Australia over the past year is the belief of migrants from some European states that only whites ought to be allowed to emigrate to Australia.Since the collapse of the Soviet Union in 1992, Germany ensured that a huge chunk of Western Europe's resources would go into subsidies for the eastern part of the continent, believing that ethnicity would trump economics.

Had Western Europe adopted a strategy of relying on global skills for its expansion, rather than relying on a single source, Eastern Europe, with a half-century history of dysfunctional educational and occupational networks, that most productive part of the world would have witnessed rates of growth closer to those of India and China than to Japan’s.

As matters stand, the hugely expensive Western gamble on Eastern Europe is likely to see the eclipse of Western European companies within the next 15 years, faced as they will be by competition from China, India and Brazil. Had even one-third of the investment that flowed into Eastern Europe gone to India, for example, the returns from that would have been enough to wipe out the losses now being made in Eastern Europe.
Eastern Europe surely includes many highly artistic, liberal and talented individuals. Yet it also includes those whose notions of ethnic privilege belong to a bygone era, but have now been made the foundation for EU immigration policies.

Such individuals would like to see the United States, Canada and Australia copy the European Union in shutting the door to those of non-European ethnicity. They have linked up with anti-nonwhite immigrant lobbies in all these countries to seek to enforce an effective ban on even highly skilled migrants from nonwhite countries.

Tuesday, 26 January 2010

Obama rejects high-tech cooperation with India (UPI Asia)

MD Nalapat


Manipal, India — Once in office, U.S. President Barack Obama apparently decided to abandon his own policy preferences in favor of those of Bill and Hillary Clinton. Given the reluctance of the former president and the current secretary of state to agree to an equal partnership with India, it is no surprise that the past year has seen the killing-off of the tiny shoots of U.S.-India high-tech cooperation promised by former President George W. Bush.This is despite the eagerness of NASA for joint projects with India. The U.S. space agency is aware that it will continue to be commercially outclassed by the European Union unless it ties up with India's Space Research Organization.

The Indians can undertake space launches that are 40 percent cheaper than the EU. Were NASA to outsource some of its hardware and software needs to India, the agency would outclass the Europeans in almost every segment of space research and exploration. This is why successive NASA administrators have – on record – pushed for closer cooperation with India.

However, the death-grip between Washington and Islamabad has thus far sabotaged all such efforts, even though NASA and ISRO have numerous complementarities, such as in hardware and software.

Tuesday, 15 December 2009

COP15 shuns the poor (UPI ASIA)

M. D. Nalapat


Manipal, India — Those intent on ensuring that the 15th United Nations Climate Change Conference in Copenhagen is free of the worst sufferers of climate change -- the poorly-heeled participants from the developing world with the exception of a few vetted and sanitized samples -- did well to fix the venue at one of the most expensive cities in the world.Holding COP15 in Copenhagen during the Christmas season was designed to ensure that airfares were high enough to scare away almost all participants from the developing world and that the developed world got a large share -- over 80 percent -- in conference participation, which is their share in global emissions.

Naturally, almost all the designated voices at COP15 are from the developed world including the chairperson, as indeed are the overwhelming majority of those representing non-official groups.

Now that pavements in Copenhagen have been declared off-limits by the local police, and low-cost student and youth accommodation has almost entirely been taken up by visitors from developed countries, those unable to get a European Union visa or afford a two-week stay in an expensive hotel in Copenhagen are sitting at home while decisions that could cost them their lives are being taken up by opaque bodies.

The few from the poorer corners of the world who managed to arrive in the Danish capital have found to their dismay, several of their accreditations cancelled without being assigned any reason. Others have been excluded from access to the high level Plenary Room because such access is arbitrarily cut off once the capacity at the Bella Centre crosses 15,000 observers, or less than even half of the 36,000 accredited participants. Such a cutoff favors those who had the finances to come early to Copenhagen, usually groups that include an army of lobbyists for business purposes intent on harnessing the conference to their advantage.

Interestingly, organizers have told delegates that the prized "Third Level Badges” will be issued to the entire business community to access high-level segments of the conference. Such measures ensure that the rich and the business world hear the major voices of the Conference.

Tuesday, 8 December 2009

Copenhagen is about carbon, not climate (UPI Asia)

M.D. Nalapat


Manipal, India — Former U.S. Vice President Al Gore may have lost his bid for the U.S. presidency, but he did beat current President Barack Obama into the Nobel laureates’ club as the 2007 recipient of the Nobel Peace Prize for his advocacy of climate change awareness.


He is also on track to become a "carbon billionaire" by investing in companies that will see revenue and profits zoom as a direct consequence of the carbon-specific measures that he champions.

Watching television channels or reading the world’s major newspapers, one may be forgiven for thinking that it is the carbon generated by manufacturing and transport that is causing global warming. But such a view would be false. Actually, it is the so-called "carbon equivalents,” primarily methane, that are responsible for much of the current increases in greenhouse gases.

The human diet is an important reason why so much methane is being generated. Each kilogram of beef uses up about 10 pounds of grain, not to mention 2,500 gallons of potable water. Lamb is even more wasteful of these precious substances than beef. Livestock developed for food consume seven times more grain than the human population of the United States, for example.

There is on average about 30 kilograms of carbon dioxide equivalent released by every kilogram of beef consumed, even before more energy is expended in cooking the meat. This makes the world's livestock industry a much more deadly emitter of greenhouse gases than the much-discussed transportation industry. Hence, a true carbon warrior must do more than just cancel a flight now and then and switch to videoconferencing; it would be better to switch from meat to a vegetarian diet.

Tuesday, 1 December 2009

Nalapat: An Interview With Lawrence Prabhakar (The Diplomat)


The Diplomat speaks with Lawrence Prabhakar, Professor of Political Science at India's Madras Christian College, about Manmohan Singh's recent trip to Washington, Indo-US ties and China's growing maritime presence in the Indian Ocean.

The White House hosted its first official state dinner last week, for Indian Prime Minister Manmohan Singh. What do you make of criticism that the Obama administration has tilted toward China and shown less interest than the Bush administration did in deepening ties with India?
Lawrence Prabhakar: I think one of the main points here is that the Obama statements in Beijing sent a discordant note through Delhi and the surrounding region. What was expected by the Indian government was that the Obama administration would fairly balance the interests of India, Japan and its allies, as well as those with China. But the kind of statements that came from Beijing in the joint communiqué of Obama and Hu Jintao turned out to be a little more tilted towards China.
The explanation among commentators here has been that the United States had to concede a lot of ground to China because of the current economic difficulties the US faces, and because of its reliance on China for putting pressure on Iran, the fiscal pressures it faces in balancing its deficit and bailing out its banks. This has been openly stated in New Delhi. So even though there were some hawkish elements that said the Singh team shouldn’t go to Washington DC with this new US tilt to China, moderation prevailed and Prime Minister Singh went. One of the positive things that came out of that has been the final shape that has been given to the Indo-US Civilian Nuclear agreement. But overall, New Delhi doesn’t seem satisfied with this tilt and it has the feeling that these moves will hamper its efforts as it tries to balance a rising and also potentially aggressive China.
What’s the perception in India on US engagement — is there any feeling there that the US sees India mainly as a counterweight to China?
Prabhakar: New Delhi and the strategic community here in India feel that the Bush years were good years for India — India always has high praise for the Bush administration’s policies. Not because we were a counterweight to China, but because the previous administration tried to empower India. But it seems that little has been done by the present administration in this regard, despite there having been a lot of hope and optimism generated at the start of the Obama administration.
The second reason why Delhi is disillusioned is the $7.5 billion package that has been given to Pakistan. This package seems to be going to Pakistan without checks and strings attached. Yet the situation in Pakistan seems to deteriorate from day to day, and the pressures that are being placed on India over Kashmir and other parts of India — and also the China-Pakistan conundrum — are all reasons of concern for India. India feels that it’s at the forefront of, on the one hand, an Islamic jihadi slant that is coming from Pakistan, and on the other an aggressive China that is starting to probe India’s defences and test its readiness. So these issues are very troubling for New Delhi. This is perhaps one reason why India thought the United States would genuinely understand India’s concerns, being natural allies and democracies with converging interests. But that understanding seems to be missing in the present US administration.
On the issue of China — what do you make of recent tensions over the border between India and China? How serious are they?
Prabhakar: I think the tensions in the border area are very interesting. They’re basically the failure of the working group between India and China that has been meeting for 13 sessions — much has been wrangled over in terms of procedure, but not much has been achieved substantively. On the one side, the India-China economic relationship has bloomed, and today we find China is, along with the United States, India’s largest trading partner. At the same time, we find the political dimension hasn’t been so cordial and the two sides have many misgivings toward each other.
And this will be especially so as long as you have the border problems and the contentious claims China has over the Tawang District in Arunachal Pradesh, an area that China has been probing for quite some time. In addition, there have recently been tensions in some of the other border provinces. These are giving the impression that China, with its rising economic and military might, is set to test India’s mettle and whether it will respond forcefully, or go back to something like the debacle in 1962 when India beat a hasty retreat.
However, if you look at recent moves by India, it looks like India has pretty well reinforced its positions — there have been air force deployments there and it has strengthened its border infrastructure and sent troops to the border. So the Indian response to China’s provocations has been pretty forceful. The other thing that India faces here is that China-Pakistan collusion will go against it in many instances. And so the recent news that China gifted Pakistan with about 50 kilograms of highly enriched uranium, as well as its plans to provide fifth-generation airplanes for Pakistan’s air force, are all significant events that are actually sending signs that the convergence between China and Pakistan is strong and that India has to be very wary.
One of the criticisms by Indian defence policymakers toward China has been over its ‘String of Pearls’ strategy, where it has been increasing influence from the South China Sea through the Strait of Malacca and across the Indian Ocean. How much of a concern should this strategy be to India?
Prabhakar: The String of Pearls is a strategic conceptualization by a US Army War College officer who wrote about this idea, and it’s since gained popularity in US and Indian circles. The fact is that China is trying to build what could be called naval access facilities in the region. They are not called basing facilities — initially they are naval access facilities with a dual civilian-military purpose. In addition, the Chinese have been doing what we call build-operate-lease-transfer projects, with many official projects in Burma and Sri Lanka. The fact is that China and Sri Lanka enjoy enduring and durable relations, with the significant strides in ties demonstrated by the Chinese giving $2 billion to Sri Lanka in 2008 and also praising the Sri Lankan war effort against the Tamil Tigers.
So Hambantota in Sri Lanka is going to be what’s called a civilian port, with bunkering facilities. And being a natural port, it can basically host many of the Chinese ships that are coming all the way from the Persian Gulf carrying oil. At the same time, we also have the port of Gwadar in Pakistan. Gwadar is clearly going to be an important outpost because the Chinese have been investing millions of dollars, and today the Gwadar port is undergoing its second phase of development. China has also been probing into Marao in the Maldives and has been trying to help them there.
So essentially what we see around the Indian Ocean and the South China Sea have been Chinese attempts to build up access facilities. These facilities have dual civilian-military uses and are basically infrastructure facilities that allow Chinese ships to have preferential access. They could possibly also be basing facilities if there was going to be a dedicated China Indian Ocean fleet, though we don’t see any evidence of that.
China is investing in the future in access facilities — much like mercantile powers like the United States and Britain once did. So this String of Pearls could be similar to the calling stations that Britain had in the 19th century. But they are not just about Chinese access — they also symbolize the kind of concrete friendship that China has with many of these South Asian nations.
In recent years the US, Australia and Japan have conducted joint naval operations and Japanese and India officials agreed last month to bolster defence ties. Do you see India’s future as involving deeper defence and security cooperation with Japan and Australia?
Prabhakar: I think with the geopolitical shifts taking place in the Asia-Pacific — including a rising China, with steady growth of its economic potential and the correlative strategic and military modernization — there could actually be a convergence of Japanese and Australian interests very much on the Indian side. This is because we find that India is a pivotal power in the Indian Ocean, and if Australia and Japan want to have to access the region to reach the energy hub of the Gulf in the Middle East, then India will be the only natural partner for them to engage with.
I think the United States under the Bush administration facilitated a lot of this strategic convergence between the United States and India, and India and Japan, and India and Australia. And then of course Malabar 07-02 was one of the very symbolic exercises that took place that involved the navies of the four nations in an exercise in the Bay of Bengal. And the annual US Malabar exercises have been growing in complexity as well as in the scope of operations. This naval interoperability has been symbolic of what is emerging to be a concert of naval powers in the region, which basically is looking to hedge against the possibility of an aggressive China that could come in the future.
So far, China has displayed a lot of restraint and has expressed it dissatisfaction as to why these powers have come together. But nonetheless, there’s increasing bilateral convergence between India and Australia and India and Japan with regard to how they should contend with the future of Chinese naval power in the region — both in the Pacific and Indian Oceans. The Indian navy is one of the most robust naval forces in the region and will continue to play a very important role in what I would call the benign, humanitarian operations there. At the same time, the Indian navy also has the capability for coercive and ‘compellant’ missions.
So there’ll be greater naval convergence between India and Japan and India and Australia — not only out of strategic convergence, but the growing economic ties between them. And I’d say that although there are some differences, the fundamentals between India and Japan and India and Australia are as good as those in the US-India relationship.