Talk to stall talks
WHOSE voice should be treated as authentic in Pakistan in the matter of bilateral relationship with India? Foreign Minister Sartaj Aziz wants some progress in the talks scheduled between October 15 and 18.

Dear onions
ONIONS have had a traditional relationship with the poor man. But the bond has been snapped, at a time when he needed it most.

Projecting nuclear India-II
by Hari Jaisingh
CERTAIN grey areas remain in the ongoing Indo-US dialogue in which Mr Jaswant Singh and Mr Strobe Talbott are the principal participants. They have established a good equation at the personal level. These days the personal factor does count in delicate negotiations.

Delink quota from vote-bank politics
by Satyapal Dang
IT is time to examine where we stand in the matter of caste-based reservations in the services, legislatures, education, etc, after more than half a century of Independence.

NRIs asset to mother country By M.S.N. Menon THERE are 20 million Indians spread over 150 countries of the world. Can this Indian Diaspora be an asset to the mother country? By the same argument, there would be no Sixth Estate. Why? Because the world would be fully exposed by the Fifth Estate. And now Fifth Estate by K. Rajbir Deswal THEY say with the guarantee that there would be no fourth world war. Why? Because the world would be destroyed in the third war.

75 Years Ago

Alleged fraud on Insurance Company
THE appeals, filed by Captain Cary, Alien and Samjibhai, who were sentenced in April last by Mr Madgaokar, Additional Judicial Commissioner of Sind, to rigorous imprisonment for one, two and three years respectively for conspiring to defraud two insurance companies, were called for hearing yesterday before a Bench consisting of Mr Kennedy, J.C. and Mr Raymond, A.J.C.

Talk to stall talks

WHOSE voice should be treated as authentic in Pakistan in the matter of bilateral relationship with India? Foreign Minister Sartaj Aziz wants some progress in the talks scheduled between October 15 and 18. He says that if Foreign Secretary-level talks fail to yield encouraging results, "there is no point in continuing with similar parleys in November". This is something akin to foeticide. Both India and Pakistan want a substantial dialogue. Essentially, it means that both sides should at least agree on a pragmatic approach to the issue of Jammu and Kashmir. There has been too much distracting effusion on various imaginary confidence-building measures. Mr Sartaj Aziz is right when he says that mere dialogue cannot produce mutual confidence. This is what Indian leaders have been saying all these years. What is the use of exchanging pleasantries either in Delhi or in Islamabad, knowing well that the after-dinner joint declaration would iterate the familiar expression: "We met, we talked and we could not agree (on anything)?" The Colombo failure was partly redeemed by the limited Durban success. Why? Mr Sartaj Aziz himself provides a partial answer: "I think the international reaction to the failure in Sri Lanka was quite strong. Here were two countries with nuclear capabilities and, a tense relationship and the whole world—P-5, G-8, the Security Council, etc — was talking about the need to reduce tension to roll back the nuclear stand-off and resolve the underlying issues." The Pakistan Foreign Minister,however, is misinterpreting the purpose of the continuing process of India-Pakistan talks. There were high-level discussions in New York recently. The Prime Ministers of the two countries met and talked about matters of mutual concern. They did not decide not to talk further. Is this not a welcome development?

Now Mr Shamshad Ahmed, Foreign Secretary, says on behalf of his government that Pakistan is not going to negotiate on behalf of Pakistan. It is going to talk on behalf of the people of the "entire" area of Jammu and Kashmir. This expression "entire" should mean the whole state of Jammu and Kashmir which merged with India in terms of the Instrument of Accession. Now, how many divisions have been made of this legitimate Indian territory? There is the part that has been grabbed by Pakistan and merged into its actual geographical entity unlawfully. There is Pakistan-occupied Kashmir. Some Indian areas have been gifted to China. And then there is the vast region in the hills and the plains administered by the Farooq Abdullah-led state government. Pakistan is not only in "constant touch with the Kashmiri leadership on both sides of the Line of Control", Mr Shamshad Ahmed! Forgetting the fundamentals of good neighbourliness, Islamabad is waging a proxy war and threatening to bring Bin Laden and his saboteurs in a big way even to the so far tranquil parts of the Indian state. One thing must be kept in mind before resuming talks this month. The Government of India will not write a declaration of abdication of its sovereign rights on Jammu and Kashmir and hand it over on a platter to the representatives of Pakistan. Jammu and Kashmir is an indivisible state of India. Now all discussions must be held after recognising that there could be only some adjustments of dividing lines or boundaries. Nothing more is possible. Pakistan has no right to talk about the people of Jammu and Kashmir, many of whom have been enslaved by it in areas forcibly occupied or grabbed by it. In the light of the Foreign Secretary's uncalled-for comments, the October talks seem to be foredoomed. Pakistan needs to keep its own house in order. Four ethnic groups—the Sindhis, the Pushtoons, the Balochs and the Seraikis—have resolved to stand unitedly against what they call the domination of the Punjabis. They have vowed to "snatch our rights" and threatened that a situation could soon arise in which Pakistan might collapse. They have launched a Pakistan Oppressed Nations Movement (PONM). Mind the word "nations". The PONM says Pakistan is a multinational country comprising five nations— the Punjabis, the Sindhis, the Balochs, the Pushtoons and the Seraikis. The demand for declaring each one of these as autonomous and sovereign is gaining ground. The Army Chief's resignation and the related issues have added a new dimension to Pakistan's plight. Prime Minister Nawaz Sharif must not take recourse to diversionary tactics and deal with the problems of his own country first. If he ends the proxy war in Kashmir, he will get some moral and material support from India in managing the crises he is facing.

Dear onions

ONIONS have had a traditional relationship with the poor man. But the bond has been snapped, at a time when he needed it most. As almost every vegetable is selling at an unaffordable price for the poor man, onions could have come to his rescue. But the tragedy is that this bulbous agricultural produce has ceased to be the poor man's vegetable. Even the rich are finding its taste too bitter to savour it. Its prices range between Rs 60 and Rs 50 in different parts of the country, including Delhi and Chandigarh. This is not enough. Hold your breath. If the Delhi-based Onion and Potato Traders Association is to be believed (there is no reason why it should not be), onion prices may touch the mark of Rs 75 a kilo by the time of Divali, of course the other things remaining the same. Thus there is a clear warning for the government to arrange increased supplies to prevent the situation from coming to such a pass. This is not only in the interest of the consumers but also the ruling coalition at the Centre led by the BJP. Onions have an interesting political aspect too. In 1979-80 onion prices were one of the major factors which made the then Janata government highly unpopular among the public. The Indira Gandhi-led Congress made use of the opportunity and recaptured the seat of the Central government with a thumping majority. Will history repeat itself? The answer remains in the womb of the future. In the meantime, there is every likelihood of the coalition partners losing in terms of votes in the coming assembly elections, at least in Delhi and Rajasthan.

How far is the ruling coalition responsible for the onion crisis? The trouble was first noticed in December, 1997. There was a big shortfall in the supply owing to crop failure, particularly in Maharashtra and Gujarat. The then government quickly pressed the control button and banned the export of the politically sensitive commodity, though only for a limited period — from January 12 to March 13, 1998. The situation came under control. The rabi season (April-May) again brought the bad news — of a major decline in the yield. The Central government should have temporarily banned onion export immediately, but it preferred to indulge in dilly-dallying, may be because of pressure from certain interest groups hoping to earn rich dividends during an impending crisis. The situation started getting worse in September when the availability became far short of the demand. Obviously, during the period beginning from May there would have been large-scale hoarding to reap the maximum benefit before the arrival of the kharif crop, harvested in October. The floods in Gujarat and the rain in Maharashtra at a wrong time for the growers have affected the kharif crop considerably. As things stand today, the government's crisis - management team, if there is any, must work on a three-pronged strategy. It should ease the supply position from external sources as early as possible — it will be better if this is done before Divali. It should discontinue the export of the commodity needed so badly for the country at this time. The strategy can be more effective if the hoarders are identified and punished adequately. They are the biggest enemies of the consumers. They make a crisis unmanageable. They are more active when they have very little fear of the law. The government should not always compel people to knock at the doors of the courts for handling such a situation. It sets a bad precedent. The other day someone had to approach the Delhi High Court with a public interest litigation to direct the government to invoke the Essential Commodities Act, 1955, to effectively prevent hoarding and black-marketing of essential commodities like onions. But, unfortunately, politicians, irrespective of their hue, have a reputation for ignoring the interests of the common man, to the advantage of their supporting groups.

PROJECTING NUCLEAR INDIA-II
Pakistani mindset a major irritant
by Hari Jaisingh

CERTAIN grey areas remain in the ongoing Indo-US dialogue in which Mr Jaswant Singh and Mr Strobe Talbott are the principal participants. They have established a good equation at the personal level. These days the personal factor does count in delicate negotiations.

It is, however, a pity that our policy-makers tend to be secretive on the state of Indo-US talks. True, a certain degree of secrecy is but natural. Still, even within the framework of sensitive diplomacy, a lot of information can be shared. The communication from the Indian side on the current negotiations has rather been sketchy. We know more from the American side and the US media than from our own sources. The nation has a right to be informed.

At one stage, in his talks with the Indian community, Prime Minister Atal Behari Vajpayee himself was critical of the failure of Indian diplomacy in putting across the country's viewpoints on several sensitive matters, including Kashmir. He is right to a large extent. But it needs to be pointed out that the pace for healthy communications has to be set by the political leadership. Instead of giving mixed signals, it should be clear about the national goals and the follow-up action.

Image-building, after all, is not a matter of rhetoric. Nor can it be sustained on misplaced facts and floating wishes, howsoever well-intentioned and pious. It is a complicated exercise demanding substance, both in thought and input.

I am not talking of individual leaders, though their quality guidance can make a difference to the glitter a nation acquires. But, for me, leadership does not begin and end with its ability to play partisan politics. What matters here is a statesman's vision.

Be that as it may. Communication gaps remain. Some key persons from the Prime Minister's own outfit are not good communicators. This has been my observation. They prefer to thrive more in secrecy than in putting across the Indian position to our media personnel in an objective manner.

It is also sad to see the absence of Indian views in the US media. Of course, the American media people have their own obsessions and priorities. They see India as a problem area vis-a-vis Pakistan, especially concerning Kashmir.

The Pokhran blasts only added a negative dimension abroad. A seasoned leader like Mr Vajpayee cannot change the situation with a speech or two. It requires restructuring of our diplomatic efforts and the communication mechanism. And in this exercise, we ought to gracefully acknowledge the role of the Indian community in the USA.

A large number of successful professionals from India have emerged as powerful pressure groups. They act as lobbyists among US Congressmen and Senators. Because of their efforts, in collaboration with some of our young dynamic diplomats posted in New York and Washington, we have now a formidable India caucus working for the promotion of the country's interests in the USA. What is required now is proper coordination and an effective delivery system. However, the NRIs apart, ultimately it is the professional handling of diplomacy that can make a qualitative difference to India's image-building efforts.

The Americans understand the language of business. After China, we form the second largest market in the world. The Chinese leaders have used their business muscle to promote their country's interests. Indeed, the most effective lobbyists for China in the USA are the chief executives of a large number of powerful business houses. In 1995, I was in Washington and saw for myself the effectiveness of the pro-China American business class.

The question before the US administration then was whether to extend the most favoured nation benefits to Beijing or not in view of its record in human rights violations. The American businessmen blasted the then US Secretary of State and told him plainly that America's business interests could not be promoted if the administration became unnecessarily fussy about the human rights violations. The US administration subsequently gave in and extended to China the most favoured nation treatment.

India has not been able to take much advantage of such an approach because of various official hangups. Even otherwise, New Delhi constantly goes on revising its policies and approach with regard to investment opportunities in the country. It needs to be realised by South Block that operationally the country has to be made competitive. This is possible if we are sure about our targets and goals. In fact, I personally believe that by playing the economic card, we can defeat the American sanctions regime and related negative facets.

Mr Vajpayee, of course, set the right tone in his speech at Asia Society on September 28. This was probably his best speech in the entire tour. He talked about India and America being "natural allies" in quest of a better future. He also linked it to the USA treating India on an equal footing. He said, "We in India believe that Indo-US relations restructured" on an equal footing constitute the key element in the architecture of tomorrow's democratised world order".

But the moot point is: Can Indo-US ties be built on the equality and mutuality of interests? It will not be an easy task. Right now we are not in a position to dictate terms to the USA. The fact is that the USA as the sole super power is calling the shots and imposing its will on the rest of the world. India will have better manoeuvrability in a multipolar world that we wish to see emerging. Relations with France, Russia, Japan and several other middle-level powers hold the key for India to have its way on several vital matters vis-a-vis the USA.

What is required is new thinking and a fresh perspective on the part of policy-makers. Unfortunately, we continue to be handicapped in evolving an alternative foreign policy strategy because of our domestic compulsions. A strong projection of India cannot be sustained if it remains politically and economically weak at home.

It is for the BJP leadership to provide the requisite harmony and cohesiveness in its coalition government. It cannot carry the world, especially the USA, if it is unable to carry

along its coalition partners at home, particularly on critical issues of foreign policy. Mr Vajpayee's government has not even been able to retain the consensus on nuclear tests and some other vital global matters.

In today's sophisticated world, an amateurish handling of matters cannot help the country to become a critical factor in radically reforming the global economic order or for a stable and peaceful 21st century.

The American attitude apart, another major critical handicap of this country is the Pakistani mindset. We cannot have a Pakistan that is made-to-order. We have to accept the existing realities and accordingly evolve our responses dispassionately without indulging in rhetoric.

We cannot afford to reduce ourselves to the level of Pakistan and compete with its obsession on Kashmir, etc. Of course, we have to continuously keep ourselves engaged in a dialogue with Islamabad in the hope that sooner or later the establishment there will realise the futility of its confrontationist policies towards this country. It is a pity that the Nawaz Sharif regime does not realise the threat posed to it by the growing influence of the fanatic elements like the Taliban in Pakistan and Afghanistan.

In the circumstances, we should not expect miracles from the future rounds of dialogue with the Nawaz Sharif regime. What is important here is to take small steps forward. We should bring the people of the two countries closer by opening up the economy and strengthening the cultural ties between the two countries. The Gujral doctrine is fine to a large extent. It does provide certain answers to the question of improving bilateral ties, but the problem arises when we have to deal with an Islamic Pakistan whose sole wish is to grab Kashmir by hook or by crook.

A lot of patience is required to deal with Pakistan. And if handled carefully, diplomacy of patience and positive reconciliation and reconstruction can make Islamabad see reason. Here again, the key element is America's attitude. We can probably tackle Pakistan on our own, on bilateral terms, but it is America's global politics and its geopolitical ambition that are standing in the way of improved ties between the two countries.

Islamabad knows it cannot go very far by conducting itself within the Simla Accord framework. And hence its frequent desperate bids to internationalise the Kashmir issue. Such attempts will continue. The only thing is that we are yet to evolve a viable policy to frustrate and defeat Pakistan's dubious games. It is time we thought on new lines.

India has nothing to lose but everything to gain by adopting a flexible approach towards Pakistan. After all, as Mr Vajpayee has rightly said, it is in the interest of both India and Pakistan to live as friends since "we cannot change our neighbours". Mr Nawaz Sharif must realise that in the final analysis Pakistan's destiny is linked to that of India. He cannot cripple India, courtesy Uncle Sam !

(The author was in the media party that accompanied the Prime Minister during his recent visit to New York and Paris.)

(Concluded)

Delink quota from vote-bank politics
by Satyapal Dang

IT is time to examine where we stand in the matter of caste-based reservations in the services, legislatures, education, etc, after more than half a century of Independence.

Such reservations in favour of the Scheduled Castes were justified when they were introduced. The Scheduled Castes had been kept suppressed socially as well as economically and educationally for centuries. They were in no position to compete with the upper castes. Thanks to Gandhiji and others, the country accepted the need for such reservations. There was little opposition to them.

However, it should have been clear from the very beginning that reservations could be aptly compared with crutches provided to a victim of some accident or disease to be used by him till he is cured. Efforts thus should have been to ensure development in society in such a manner that it would become possible to do away with the reservation crutches at an early date. This unfortunately has not happened.

Reservations no doubt have helped, but even today the Scheduled Castes as a whole are not in a position to compete on an equal footing with the upper castes. This is because measures like radical agrarian reforms have not taken place; and education for all has not been given the priority it deserves. Such policies and measures would hit the ruling classes. It suited them more to convert reservations into a weapon for procuring votes. What is tragic is that those provided the reservation-crutches want to have them for all time to come instead of fighting for policies that would make these crutches unnecessary. The Left in the country too needs to make a self-critical review.

Even with the reservation for the Scheduled Castes continuing for the time being, change of policies in some respects need to be considered seriously. There is no doubt that a creamy layer has developed among the Scheduled Castes — among land-owners, in the bureaucracy, (the IAS and the IPS), etc. When brighter children coming from the so-called upper castes but belonging to much poorer families are kept out because of reservation, no amount of arguing convinces them that what has happened is correct. And that encourages casteism in reverse.

Reservation in promotions too needs to be reconsidered. In any case, the seniormost should get promotions and not made junior to their juniors. Reservation in promotions can be given ex-cadre.

In Punjab, reservation for Scheduled Caste students in medical colleges was first introduced when a minister wanted his son to get admission. With experience, it was decided to continue such reservations but also providing some essential minimum standard at a lower level than for the open category. In many parts of India, students belonging to the Scheduled Castes can get admissions even in medical and engineering colleges with zero marks in entrance tests. This has to go and radical steps have to be taken to help Scheduled Caste students to overcome this situation.

A few words about the reservation for the OBCs a la Mandal Commission. Mr V.P. Singh dug up the report of this commission, which lay buried in the files for quite a long time, for political reasons. Be that as it may, let it be conceded that the OBCs too needed reservation. Should we have not excluded such OBCs as had ceased to be backward? Should not the creamy and exploiting layers among the OBCs be kept out? A section of the Left even opposed the Supreme Court judgement directing the keeping out of the creamy layer. In some states like Punjab, 27 per cent reservation is being demanded for the OBCs even in the state services, though they are not even 10 per cent of the population. If this demand is accepted , casteism will increase tremendously. And is it not a fact that tailing behind the Janata Dal of Mr V.P. Singh, the Left too equated social justice with reservation (and hardly anything more)?

There is a race in the country to exploit not only the slogan of caste-based reservations but also caste-based benefits without paying any attention to the long-term negative effects. Let me give one instance from Punjab.

During the elections to the Punjab Assembly in 1997, the Akali-BJP combine promised Rs 5,000 as “shagun” on the marriage of every Scheduled Caste girl. No land for Scheduled Caste agricultural labourers but “shagun” for every SC girl on the occasion of her marriage. After coming to power, it was decided to limit the benefit to such families as had an income below Rs 10,000 per annum. The benefit was later extended to Christians on the same income condition. It is obvious that if any such benefit is to be given, it must be related only to income so that all poor families benefit. Not to do that is to widen caste divisions instead of narrowing them.

When caste-based reservation becomes a principle for every party, who will fight for the abolition of the caste system which Marx described as a big hindrance in the way of India’s progress?

There are also reservations which are not caste-based. Unfortunately, these too are becoming popular with votes in view. I am all for honouring freedom fighters and even providing adequate benefits to them. However, it should not lead to garnering benefits in a manner that will lead to a loss of respect for them in the community as a whole. There is no doubt that reservation cannot be dispensed with altogether just now. But it is high time to delink the questions of reservation from vote-bank politics and populism. —IPA

And now Fifth Estate
by K. Rajbir Deswal

THEY say with the guarantee that there would be no fourth world war. Why? Because the world would be destroyed in the third war.

By the same argument, there would be no Sixth Estate. Why? Because the world would be fully exposed by the Fifth Estate.

But where does that Fifth Estate exist? Well, it is already born and has started making its impact. The only thing which remains is its recognition.

Four video tapes created waves in Uncle Sam’s land with all those lewd details and near-porno stuff (deposition?), and the curiosity with which TV viewers all the world over watched the telecast is sufficient evidence to prove supra-channel superiority, the existence of the Fifth Estate.

A cartoon appeared in a newspaper depicting no sale of tickets in American movie halls since the tapes were scheduled to go on air that day.

Wise men say you don’t feel any binding (yes, literally) on you while you are in the bathroom, and all naked to yourself only. The moment you come out, you need covers. Your family members or society at large might object.

But how if by some“system” you are exposed. You may not need the bathrooms then. Thus the might of the “system” or the Fifth Estate is proved, and the question of a Sixth Estate does not arise at all.

Nearer home, a film-critic friend of mine, who bade goodbye to the City Beautiful to be in the Bollywood-Bountiful, informed me on the phone the other day about the might of the Fifth Estate.

“The stars don’t give the dates for interviews, etc, to newspaper and magazine reporters anymore with all that zeal and enamouring since there are better channels available nowadays”, he lamented.

“There was a time when the directors themselves, not to talk of the stars’ secretaries, would inform us about ‘Madam’s desire’ to fix up an interview”, he said “they would tempt us saying, ‘Sir, she would be wearing a revealing dress, rest assured, and certainly with no nakhras and blandishments’....”

But with Star TV, Zee TV, MTV, Channel V, Sony, etc proving to be prowler and popular networks, the celebrities all over the world have come to rate the printed word of the Fourth Estate as having degenerated to being a thing of the past.

Well, the Fourth Estate was surely born at a time when there was no other better medium of reporting.

The media in general may include the “printed word practitioners”, but electronic media certainly is the in-thing and is proving detrimental to the interest of the real Fourth Estate.

My film-critic friend recalls those golden days when it was all hunky-dori with the reporters, but these days even the Bollywood stars’ secretaries are not available on the phone. If by chance someone is on the line, he would say, “I am sorry, Mr... (earlier it was Sir or Madam). In fact, Madam’s mood is very upset these days... You can understand... .”

“The same evening”, says my friend, “Madam appears on a popular channel brimming, teasing, winking in all.”

Even politicians are reported to be visiting five-star hotel saloons for having a haircut when they would be facing the camera, on schedule.

Pen-pushers and readers of the printed word unite, for word-power is giving way to beam-power. And the Fifth Estate is all set to “roll camera.. .”

NRIs asset to mother country
By M.S.N. Menon

THERE are 20 million Indians spread over 150 countries of the world. Can this Indian Diaspora be an asset to the mother country?

It can and it is. One had only to see what these Indians were able to do during the visit of Prime Minister Atal Behari Vajpayee to the USA. They not only did their job behind the scene in influencing men who matter in the US Congress, but also put up an impressive show of solidarity with the mother country.

The Indians who have settled down in the United States (or for that matter anywhere else) are nationalists and are naturally drawn towards the BJP. They might have left their native country in disgust, but they all turn to nationalism by the mere exigency of their circumstances. The very hostility towards foreigners in which they have to live and work drives them to extreme forms of nationalism. Do not forget that the Gaddar movement arose among the Indian expatriates in America. Perhaps it was American racialism which drove them to it.

Mr Vajpayee may not have found kindred spirits either in the UN or in the Clinton Administration, but he was at the centre of great love when he addressed the NRIs at New York. Very few Indian Prime Ministers have received such affection.

India’s attitude towards NRIs has been ambivalent all through these years. On the one hand, it refuses to embrace them, and on the other expects them to help the mother country. There is an explanation for this. While in the earlier centuries, Indians left the shores of their native land as indentured labourers, the men who migrated during this century, especially after India’s independence, are mostly skilled people, some with high qualifications. Thus there are 50,000 to 60,000 Indian doctors abroad (27,000 in the USA alone) and 20,000 academics (9,000 in the USA). In short, they are all professionals, who could have served the mother country, but chose to go abroad because they failed to find suitable jobs in India or wanted to get rich quick. This was naturally resented by the Indian leaders. It is said that after getting expensive education at the IITs at the cost of the country, 75 per cent of these students migrate to the developed countries. It is true most of them fail to get jobs in India, and are given no choice but to migrate. But, strangely, their action is looked upon as unpatriotic. Such an attitude on the part of India is resented by the NRIs, which is perhaps the major reason for many misunderstandings. But a man can love his country and not its government and the ruling class. Any Indian who finally opted to migrate did so with a sense of anger against the Congress and the ruling class of this country for they were responsible for the conditions that drove these people abroad. This explains the ambivalent attitude of the NRIs to India and its ruling class.

The NRIs in the USA, Canada, Europe, Australia and New Zealand number about three million. They are the most educated and affluent among the Diaspora. They have done well in taking the initiative to unite all the Indian expatriates under a new organisation the Global Organisation of People of Indian Origin. It can channel help to India. These overseas Indians are said to have assets worth $ 300 billion.

The Indians overseas are an extended arm of India. In times of need, this community can be of assistance in many ways. But it has to be cultivated. We cannot take them for granted. But the Indian bureaucracy is the greatest impediment. It has thwarted all efforts to give a new dispensation to the Indian Diaspora. Perhaps the overseas Indians have not fulfilled the expectations of the Indian leaders and the bureaucracy?

Take China for example. There are 50 million Chinese abroad. They have contributed about 70 per cent of the foreign investment in China (i.e. about $ 80 billion). And they have taken all the risk involved in investing in a Communist country. But the mother country has gone out of its way to attract them. China has a Ministry to deal with overseas Chinese. The Indians overseas have been demanding at least a department where they can get all problems attended to. But the demand has been resisted by the bureaucracy. China has opened a single window clearance under the Ministry, so that the overseas Chinese have no problems to face. In India, an expatriate Indian has to go from pillar to post to get an investment through. This is reflected in the very low investment of the NRIs in Indian business and industry. It is no more than $ 2 billion in direct investment. Such anomalies must be rooted out. The BJP Government must ensure it as a mark of gratitude for the support it is receiving from the NRIs.

It must be a matter of satisfaction to the BJP that NRIs have responded well to the Budget concessions it has made this year to the NRIs. NRI deposits are reported to have gone up substantially in 1998. Already it is in the region of $ 20 billion to $ 25 billion. The annual flow has been of the order of $ 4 billion to $ 5 billion. Besides, there are remittances which according to one estimate have gone up to $ 6 billion. This is largely accounted for by the Gulf Indians.

NRIs have global experience, technical competence and funds. All these can be of help to India. But the NRIs have not shown any presence in any field so far. It is true that while most Chinese are in business, most Indians are professionals and are averse to business and industry. This explains why their direct investment is so low. They prefer to go for deposits if interest rates are attractive. That is why the Resurgent India Bonds issued by the State Bank of India with an interest of 8 to 9 per cent has become an overwhelming success in the Gulf region. (The US government tried to thwart its issue in America.) At this rate of interest, the bond must be a success in England and elsewhere, too.

Except the Hindujas, the NRIs have not shown much interest in industries. But, then, like the Swaraj Pauls, the Hindujas are industrialists. But the professionals (especially doctors of the USA) have shown considerable interest in the pharmaceutical industry and have already invested about $ 100 million (Rs 300 crore) so far. As prospects for doctors are on the decline, they want to come back to India.

Unless the BJP Government improves conditions for NRI investment, there cannot be any significant change. Even silly hurdles take a long time to be removed. For example, there was a limit of 1 per cent on the holdings of an NRI in an Indian company. It has been raised now to 5 per cent. And yet we allow 100 per cent holdings to an MNC!

Of course, NRI investment in India is primarily for profit, not only for patriotism, for much of it has gone to western India and not to the states to which the NRIs belong. Thus north India gets only 9 per cent of the total investment! And yet the Punjabis are the main investors.

If there is no significant presence of NRIs in our stock market (there is urgent need to revive it), they say it is because the rules are so cumbersome that it is difficult to waste time over them. The present rules are definitely discouraging, they say.

There are, of course, other issues. For example, the NRIs want dual citizenship. The Government of India has conceded this partly by giving a card to “person of Indian origin”, with which one can enter India without a visa. The BJP is not in a hurry about dual citizenship because it involves two governments. But even the card has given a feeling to the NRI that he is a part of India.

Indian banks are unwilling to manage NRI portfolios because of the time they have to take in paper work. This is a serious setback. What is needed is a simpler procedure. But in the climate which obtains today, such a change will take years.

What of the future? The NRIs are no doubt worried, more about their children. Immigration is no more welcomed by the Western countries. Cut off from the mother country, these children can become rootless. The NRIs want facilities in India for higher education for their children and “orientation” schools. But the situation is not hopeless. They have the example of the Jews who have maintained their identity even after 2000 years of stress and strains.

75 YEARS AGO
Alleged fraud on Insurance Company

THE appeals, filed by Captain Cary, Alien and Samjibhai, who were sentenced in April last by Mr Madgaokar, Additional Judicial Commissioner of Sind, to rigorous imprisonment for one, two and three years respectively for conspiring to defraud two insurance companies, were called for hearing yesterday before a Bench consisting of Mr Kennedy, J.C. and Mr Raymond, A.J.C.

The gravamen of the appellants’ complaint was that they had not been fairly treated by the trying judge. It examined the accused; interrupted and questioned their counsel, in the course of their arguments not with a view to checking irrelevancy but to express disagreement with their conclusions; addressed the Jury off and on while the counsel argued; made dogmatic and unqualified statements in his charge to the Jury; and finally amended the transcript of the short-hand writer’s notes of his charge to the Jury, apparently with a view to removing the impression that he had in any way influenced the Jury. The hearing is being continued.

Complaint against Government Pleader

The complaint made by the Moslem accused against Mr Behari Lal Nehru, Government Pleader, for alleged insulting expressions during the course of his arguments in the Karari riot case has been withdrawn, Mr Nehru having stated he never used any words with the intention to insult.