Vitiating the poll
THE discovery of fake ballot boxes in Bihar would amaze only the hardened disbeliever in crookery. As many as 1,387 "duplicate" containers of the prospective electors' verdict have been found after concerted verificatory work by the Election Commission, which says that "historic and unprecedented steps" taken by it to ensure free and fair poll have not been "fully appreciated by the political parties and others concerned".

Pak unfair stand on PoWs
DESPITE enough proof of Pakistani misadventure in Kargil with the involvement of its regular troops, it has been trying to prove its innocence before the world community at every available opportunity.

PROMISES CAN'T SWAY VOTERS
Stability with performance needed
by Hari Jaisingh
WHETHER it is admitted or not, the fact remains that the present Lok Sabha election has been thrust on an unwilling nation. Any opinion poll will confirm this. The election could have been avoided. But it was brought about by hatred and haste—hatred for the BJP in certain political quarters and haste for power on the part of the Congress and some of its allies.

Visits and visitations
by R. A. Singh
WASHINGTON D.C., the US capital, has always been the Mecca of an assortment of India’s politicians, bureaucrats and soi-disant media analysts. They fly in with different hues and plumage, but with the overt or tacit sponsorship of the government of the day in New Delhi.

Few takers for US economic model
By M.S.N. Menon
LACK of faith in a single super power has prompted the call for a multi-polar world. And lack of choice in the way we live has prompted the call for models other than American. The USA has always wanted to organise the world around one single model — its own. For half a century, it waged a relentless cold war in pursuit of this objective, only to discover, alas, at the end that there were no real takers for it in the world! Neither Europe nor Asia is enamoured of the American model anymore.

Whirls of sorrow
by Ramesh Luthra
AGONISING look in her eyes. A mother’s unfathomable anguish piercing my very being. I just can’t get over it. And the father — so dazed he looked. My pal always kept photographs of his parents and brother in his pocket. So youthful the dad seemed in the photograph and the smiling mother — really a beaming face. Utterly woe-begone and harrowed they were when they visited me in the hospital to inquire how my worthy and brave friend had breathed his last fighting the unscrupulous enemy.

75 Years Ago

August 27, 1924
Within or without the empire: views of C.R. Das
“IT WAS often asked whether it would be Swaraj with the Empire or without it. The people wanted their liberty and freedom. They wanted the right to establish their own system of government. If that was consistent with their being within the Empire, they had no objection to being in the Empire.

Vitiating the poll

THE discovery of fake ballot boxes in Bihar would amaze only the hardened disbeliever in crookery. As many as 1,387 "duplicate" containers of the prospective electors' verdict have been found after concerted verificatory work by the Election Commission, which says that "historic and unprecedented steps" taken by it to ensure free and fair poll have not been "fully appreciated by the political parties and others concerned". The methods adopted by the fakers and forgers are almost as vague as the claims of fool-proof moves made by the commission to make the coming election transparent. The commission has promised to take its cleansing process to its logical end. It has added that the purity of the measures will not be allowed to get sullied on account of the duplication of the boxes. It would be interesting to get the enigmatic secrecy hinted at by Dr M.S. Gill's setup explained in the public interest. The quality of democracy depends on the fairness of the franchise. The risks of universal adult franchise were cheerfully taken even during the first general election. The parties imposed a sifting process. The education of the electorate and the working of the poll process became the two major responsibilities of the electoral machinery. It became clear at the very outset that it was not easy to correct either the voting behaviour or the voting system. But it was possible to foster faith in broad-based action by making parliamentary democracy representative, reliable and efficient through correct voting. Leaders like Dr Shri Krishna Sinha, Mr Anugrah Narayan Sinha and Mr K.B. Sahay succeeded in educating the electors in a considerable measure. As the condition of the state's polity deteriorated, the communal and casteist mafia took to violence and unfair means. The elections that followed showed increasing duplicity on the part of the contending parties. Issues and ethics did not matter anymore. Money and muscle decided the fate of the contestants, both in the state and parliamentary elections. Booth-capturing became common. Bogus voting did not raise eyebrows. Those elected by the people, by and large, did dot symbolise a popular mandate. Satan began to rebuke sin and scoundrels ruled the electoral field. The constitution of Parliament or the Legislative Assembly came to be perceived as the mere fulfilment of a constitutional requirement.

Bihar's Chief Electoral Officer A.K. Basu has much to explain to the Election Commission. There are 54 Lok Sabha constituencies in the state; 19 of them go to the polls on September 18 and the same number on September 25. The electors in the remaining constituencies (16) will cast their votes on October 3. Thus, the damage done to the poll process can still be corrected. We do not apprehend the impossibility of a fair election in Bihar. On the previous occasion, ballots for the notorious region were printed under the direct supervision of the Election Commission in New Delhi. The stock was moved by Air Force planes and the risk of the use of any bogus ballot paper was minimised. Understandably, Dr Gill and his two associates would like to take the candidates in various constituencies into confidence and allow them to inspect the numbered empty containers before they are placed in polling stations or booths. What has happened is a dangerously criminal pointer. The state government is capable of doing much mischief and the de facto Chief Minister, Mr Laloo Prasad Yadav, is a past master in manipulative politics. Nothing should be left to chance. Not only the ballot boxes but also the sets of the ballot paper should be guarded meticulously. Politicians are truckling to the multitude cunningly. Private "senas" will doubtlessly be pressed into service by many candidates and their supporters. The nation is keen to know the full story of the existence of such a large number of duplicate ballot boxes. Maybe, the culpable invention is not limited to the state of the Buddha and the buddhu!

Pak unfair stand on PoWs

DESPITE enough proof of Pakistani misadventure in Kargil with the involvement of its regular troops, it has been trying to prove its innocence before the world community at every available opportunity. The latest case is that of its eight PoWs in India’s custody. On August 13 India, as a goodwill gesture, offered to release these soldiers, captured during the Kargil operations, to be repatriated to Pakistan. All that India wanted was that Pakistan should confirm their identity before they were handed over to the International Committee of the Red Cross for their repatriation in accordance with the 1949 Geneva Conventions. But Pakistan insists that it is “not required to fulfil any other conditions” than this — that these detainees are its soldiers. This has created a piquant situation. Initially, Pakistan reacted to India’s offer by saying that the captured soldiers, belonging to the Northern Light Infantry, were “Pakistani detainees”. Later on its stand changed and Islamabad described the eight men as “alleged Pakistani armed forces personnel”. Now it is accusing India of “playing politics” over the question of the prisoners’ release. The world knows who is doing what. The issue exposes Pakistan’s irresponsible behaviour once again.

As far as the normal practice vis-a-vis PoWs goes, any country would have jumped over the kind of offer India has made to Pakistan. Islamabad’s prevarication stems from its unsustainable stand based on untruth that its armed forces had nothing to do with the crossing of the Line of Control in the Kargil heights, and that it was the handiwork of the so-called mujahideen, not under its control. If this was the reality, what was the reason for Prime Minister Nawaz Sharif to sign the Washington Declaration that led to the cessation of hostilities in the Kargil sector? Obviously, this came about with the withdrawal of the Pakistani troops having intruded into the Indian side of the LoC in the garb of the mythical “mujahideen”. There are authentic reports that the Pakistan government has promised a hefty compensation of $10,000 to each of the personnel of its Northern Light Infantry for their role in the Kargil military conflict, with an additional benefit to the families of the officers killed — a residential plot of land at any place of their choice. Whom does Pakistan want to fool? The whole world is aware of the truth. The authorities in Islamabad cannot keep their own people in the dark for too long. Even they too must be aware of the foolhardy of their government by now as in this high-tech era it is just not possible to hide the truth. During interrogation some of the Pakistani PoWs have revealed that there is great frustration in their ranks as they now realise that they have been used as “sacrificial goats”. Soon they will also realise that their country’s authorities would not have indulged in winning diplomatic points over their fate had they come from the heartland of Pakistan — Punjab, to be precise.

PROMISES CAN'T SWAY VOTERS
Stability with performance needed

by Hari Jaisingh

WHETHER it is admitted or not, the fact remains that the present Lok Sabha election has been thrust on an unwilling nation. Any opinion poll will confirm this. The election could have been avoided. But it was brought about by hatred and haste—hatred for the BJP in certain political quarters and haste for power on the part of the Congress and some of its allies.

Such things are an aberration in a democracy, more so in a country like India. The cost can be extremely high. We cannot afford it.

Be that as it may, now that the midterm election is upon us, we must see to it that it is totally free and fair. Chief Election Commissioner M.S. Gill and his two colleagues —G.V.G. Krishnamurti and J.M. Lyngdoh — have done a fine job with their periodic fatwas of do's and don'ts. The Bharatiya Janata Party might not have relished some of the Election Commission's ban orders, especially those relating to Kargil and the use of the electronic media. The swift action on several sensitive matters has brightened the public standing of Dr Gill and his two associates.

Full marks to the Chief Election Commissioner and his colleagues for projecting a serious "I mean business" image before the electorate. Dr Gill might lack the showmanship of Mr T.N. Seshan. He is not a loudmouthed person. He conducts himself in a professional manner and asserts his authority flowing from the Constitution. By his transparent conduct, he has revived the people's faith in this vital organ of democracy. This should be seen as a positive gain and strengthen the people's faith in the system. Of course, the real test will come on polling days. If he is able to tackle the problem of fake ballot boxes and rigging and coercion by mafia elements, it will be really something.

The contest is going to be keen. In this atmosphere, it will be normal to expect malpractices and violence. This needs to be resisted and contained. This is, however, not the responsibility of the Election Commission alone. Everyone of us ought to be committed to free and fair elections even in Jammu and Kashmir

In a way, there are not many substantial issues in the present election. Too much is being made of Kargil. It has been politicised. Both the Bharatiya Janata Party and the Congress must be blamed for mishandling the Kargil success.

The performance of our armed forces should not be a matter of partisan politics. Success on the battle front belongs to the whole nation. It cannot and should not be apportioned to different political components. The whole episode reflects poorly on the quality of our leadership. The trouble is that when leaders and their parties ignore real issues, they take recourse to cheap gimmicks. For that matter, even the manifestos of major parties do not throw up serious matters for public attention and support.

They are full of promises. But no one takes them seriously—even the parties and their candidates do not.

The manifesto is actually a document of promises — an IOU if you like —which the party offers in return for the votes. But look at the election campaign. No leader talks about the manifesto of his party.

The moot point is: how long can the parties deceive the people? Not for long. Voters cannot be fed on promises. A stage comes when parties and candidates will have no credibility left. This is what has happened to the Congress. It has been making promises for far too long without fulfilling them and today no one believes in its promises. The same is true of other parties as well. The faith in the BJP is also eroding. The only factor in its favour is Mr Atal Behari Vajpayee. He has emerged as the country's elder statesman. A large number of people feel that the country's future is safe in his hands.

Today, the Indian voter is not innocent. By long experience, he knows what these manifestos are worth. He know the worth of the candidates too. And, above all, he knows the mind of the parties in the fray. You cannot fool him all the time.

The Indian voter is known for his common sense. He can read between the lines and draw his own conclusions.

The real challenge today is how a party can regain the trust of the people. This can be done only by one way: it must field persons with a clean image. This will be a far more eloquent gesture than speeches and the promises made in the manifestos.

It was the Emergency of 1975-77 that marked the decline of the Congress. It has never recovered after that. In fact, anti-Congressism became the order of the day after the Emergency.

Mr L.K. Advani's rath yatra and the Babri Masjid episode on December 6, 1992, brought the BJP into public focus, though negatively. Under Mr Atal Behari Vajpayee, the BJP is trying to acquire secular credentials. The final outcome of the two factions representing the BJP will be known after the elections.

The Congress could have revived its fortunes. But two things stand in its way—first, the Mandal issue and second, the loss of Muslim votes. Unless the Congress wins back these vote banks, it will have little chance of coming back to power. In the absence of a winnable image, the Sonia magic is unlikely to work.

True, the Congress manifesto promises many things to the dalits and minorities. But because of the party's low credibility, promises are unlikely to prompt the voters to desert their new patrons.

The emphasis of the Congress is on fighting poverty and unemployment. The Congress has been at this for four decades, but with hardly any notable success. Thus, the electorate is unlikely to be swayed by such false promises. There is also stress on infrastructure and agriculture. But all these are a repetition of the 1998 offering. There is nothing much innovative in the Congress manifesto this time.

On the political and social fronts, the Congress promises stability, secularism and social justice. But is the record of the party on the stability point inspiring? Ever since the Congress has been out of power, it has never allowed any government to function smoothly. Moreover, when it is in power, internal feuds never lead to stability. And Congress secularism, too, seems to have gone soft. As for social justice, the Congress has nothing attractive to tempt the dalits back. In any case, to uplift 40 per cent of the people living below the poverty line even after four decades of planned development, the country must have a growth rate of 7 to 8 per cent for a decade or more. With confrontational politics, this will be a difficult proposition.

In contrast, the National Democratic Alliance (NDA) manifesto is direct and hence attractive. It has some innovative proposals. Of the three—bhookh, bhaya and bhrashtachar—bhookh (hunger) will be with us for a long time whatever the NDA might say.

The NDA will gain much mileage if it miraculously stamps out bhaya (fear) and bhrashtachar (corruption) from the polity. This will require strong will power. A clean-up of the police and the administration has to get top priority. Equally vital is the fight against political corruption.

It must also be pointed out that the problem of corruption is mainly due to our antiquated laws and the way courts work. It speaks very poorly of our judicial system when the courts let off some known offenders.

Yet, one of the innovative proposals of the NDA is the fixed term for all elected bodies. While stability of the elected bodies is desirable and welcome, it needs to be pointed out that stability demands a certain degree of discipline on the part of elected representatives. It also requires a degree of honesty and value-based approach to men, matters and issues. The Lok Sabha and state legislatures can work for five years. But stability without performance is meaningless. Let us not forget that our elected representatives are often not gentlemen.

As already pointed out, the manifestos are not going to be discussed at the rallies. What will be the point of focus are other issues like Bofors, Kargil, fascist threat, scams and Mrs Sonia Gandhi's foreign origin and her suitability for the highest job in the country. And these issues will generate heat and passion. This will, in turn, divert the people's attention from the real problems facing the nation. This is a pity.

Visits and visitations
by R. A. Singh

WASHINGTON D.C., the US capital, has always been the Mecca of an assortment of India’s politicians, bureaucrats and soi-disant media analysts. They fly in with different hues and plumage, but with the overt or tacit sponsorship of the government of the day in New Delhi.

It is not that these visiting worthies — either as part of delegations or individually — always come here to advance the nation’s interests. Some of them, of course, strive mightily to put India’s point of view across succinctly and convincingly. Often, alas, there are others with the goal of advancing their own personal agenda at the cost of the Indian tax-payer. The former kind of visits bring benefit to India and to Indo-US relations. The visitations by the latter variety not only bring down India’s stature abroad but also mar the goodwill that has been engendered with considerable effort.

The most striking example of such a disastrous visit was the one undertaken recently by a media mogul, who had engineered an entry into the Rajya Sabha courtesy the BJP-led government. His brief obviously was to explain India’s righteous stand with regard to the current complications with Pakistan. Instead, he self-righteously chose to enact Kargil-II with all his interlocutors. From California to Washington, he quarrelled with everyone wherever he went, at times bringing down fair debate with Pakistani journalists and officials to the level of near-fisticuffs.

Hapless diplomats, who had the unenviable task of chaperoning the well-connected moron during his round of arranged meetings, could only hang their heads in utter shame as he went about in a manner that would have made the proverbial bull in a China shop appear to be as graceful as a ballet dancer. In discussions with high US officials, he kept putting his foot in his mouth, mainly out of sheer ignorance. He was unaware, for instance, that there were significant differences between the BJP election manifesto of 1972 and the BJP-led government’s current policies. He kept vehemently objecting to the issues on which India and the USA had already reached an agreement or at least a modus vivendi.

Since this person had been projected as a media heavyweight with high connections, his antics caused some confusion and even consternation among senior American officials, who privately had to call their counterparts in the Indian Embassy — to be reassured that there had been no recidivism in the policies of the government. The self-opinionated visitor was someone even the embassy had to tolerate, and that his uninformed formulations would evaporate with the end of his visit.

It was in such a depressing ambience that a two-man delegation visited Washington. But what a happy contrast! Former Foreign Secretary J.N. Dixit and former Home Secretary N.N. Vohra came, they saw, they conquered. In three hectic days, they had meaningful interaction with think-tanks, newspaper editorial boards, senior US officials and members of Congress. They drew justified praise for being cogent, articulate and knowledgeable. It was a real treat to watch Mr Dixit at think-tank seminars demolish the charges of the Pakistan lobby with superb skill and rapier-like logic.

Mr Dixit drove home the self-evident truth that India and Pakistan could not wish each other way, and had to learn to live with each other. They could cooperate for mutual benefit — and India was willing to cooperate — but never at the cost of India’s enlightened self-interest. He also silenced the constant refrain by Pakistani elements that India had reneged on its agreement to hold a plebiscite in Kashmir, by pointing out that Pakistan had never implemented the pre-conditions for the plebiscite stipulated by the Security Council.

Meanwhile, there are two aspects of Indo-US relations on which New Delhi needs to free itself from positions hardened by constant repetition. One has to do with the issue of US mediation in Kashmir. The insistence on bilateralism on fine, but no one will deny that the Kargil solution would not have come about without US intervention and the pressure President Clinton brought to bear on a desperate Prime Minister Nawaz Sharif. India can get into semantic convulsions and find a difference between “mediation” and “encouragement”, but what President Clinton did was as near mediation as makes no difference. In any case, as long as the USA is fully behind the Indian position, what is wrong with a little mediation — or encouragement — if you will?

Secondly, just because the USA fully backed India on Kargil and left Pakistan practically with eggs on its face, it does not mean that New Delhi and Washington have become soul-mates forever. US policies are — and should be — based on its own perceived self-interests, and the current warming towards India is purely Kargil-specific. There is no justification for concluding, as some appear to have done in India, that the USA will now unilaterally drop its previous demands for “benchmarks” such as signing the CTBT and the FMCT, and put curbs on the development and deployment of missiles.

Even if President Clinton makes a high-profile visit to the subcontinent early next year, as now it appears probable, it is unlikely to alter the course of basic US formulations for an expanded engagement.

India and the USA have so many commonalties that they have a great future together. But the relationship has to be nurtured carefully and with a great deal of patience. In so doing, meaningful visits are helpful, but malodorous visitations by political ignoramuses can be pure poison.

(The writer is based in Washington.)

Whirls of sorrow
by Ramesh Luthra

AGONISING look in her eyes. A mother’s unfathomable anguish piercing my very being. I just can’t get over it. And the father — so dazed he looked. My pal always kept photographs of his parents and brother in his pocket. So youthful the dad seemed in the photograph and the smiling mother — really a beaming face. Utterly woe-begone and harrowed they were when they visited me in the hospital to inquire how my worthy and brave friend had breathed his last fighting the unscrupulous enemy.

I had to muster all my strength to narrate to them how their valiant son faced the fierce shelling of the enemy. My heart raced fast. But somehow I described the indomitable courage displayed by the fearless guy in hand-to-hand fight with the well-entrenched enemy would go down in the annals of Indian army for ages to come. He had made us feel proud, indeed.

The mother stood with copious tears rolling down her cheeks as if the heavens were pouring down. The father managed to show exemplary control but swallowed hard time and again. ”Splinters just tore the Captain apart,” the moment words escaped my lips, he too broke down.

Lying awake on the bed in the army hospital I am reliving every moment spent with them. How painful it is to lose one’s child — one’s own flesh. It tears the heart away — a hollow pit emerges in the stomach which refuses to disappear despite satisfying the pangs of hunger. All the wealth and riches can’t retrieve this sorrow, this loss. They too must be recounting every moment of their young son — rejoicings at his birth, his pranks, how he climbed the ladder of school and college life and then the glorious hour when he passed out of the IMA. Their hearts must have swelled with pride at the final parade. Their joyous faces betraying sheer parental ecstasy! My parents too glowed with delight when I donned the alive uniform.

Their pain, their irreparable loss is corroding my heart exactly in the manner when death snatched my three-month-old son whom I hadn’t seen even. The shattered heart cries out:

“No, no, no life !

Why should a dog, a horse, a rat have life,

And thou no breath at all ?”

The mother’s vacant looks as if she searched for the lost son in the vacuum will follow me like a trail all my life. She was engulfed in the whirls of grief and sorrow. So ill-fated I am that I could not be his pall bearer because the splinters hurt me too badly.

As they patted me caringly an unknown sensation ran through my blood. I sought their blessings and promised to see them every year during my annual leave all my life. I must pay homage to my valiant friend and all others who sacrificed their lives so that the country lives. They have left memorable footprints on the sands of time which no power on earth can annihilate.

Few takers for US economic model
By M.S.N. Menon

LACK of faith in a single super power has prompted the call for a multi-polar world. And lack of choice in the way we live has prompted the call for models other than American.

The USA has always wanted to organise the world around one single model — its own. For half a century, it waged a relentless cold war in pursuit of this objective, only to discover, alas, at the end that there were no real takers for it in the world! Neither Europe nor Asia is enamoured of the American model anymore.

Choice is important in life. It reflects freedom — freedom to live as you want, think as you want, to eat as you want, to enjoy as you want. Minus this freedom, life is not worth living. And yet we are told such rubbish that things turn out for the best when left alone!

The European Union admitted recently that “capitalism is its own enemy.” It went on to point out that “the crisis we have witnessed (in Asia) teaches us three things: that capitalism remains unstable, the economy is political and the global economy calls for regulation.” Obviously, the US model is not acceptable to Europe. Tony Blair, the British Prime Minister, says: “I believe we can construct a new and different kind of politics for the 21st century.”

Now that socialism is no more a threat, there is less talk of capitalism. The stress is on “free trade” and “free market”. And yet looking at the acrimony within the WTO, it is clear that “free trade” has no future.

As for “free market”, here is what Prof John Gray of the London School of Economics has said: “A year or so from now, it will be difficult to find a single person who admits ever having believed that the global free market is a sensible way of running the world economy”.

The present crisis has eroded the legitimacy of the idea of a single integrated world market. The return to “free trade” was the handiwork of Reagan and Thatcher. But it has not worked, and it will never work, for “free trade” is never free.

“Free” movement of capital — a new idea — was spawned by Wall Street bankers and brokerage firms. A more selfish idea cannot be even thought of. With growing funds of savers and pensioners, it became necessary for these banks to find new avenues for more profitable investment. But controls stood in the way of US capital expansion in most of the countries. Naturally, the banks and brokers want capital controls to go, the world to be thrown open to them.

This is at the heart of globalisation. Globalisation is, however, marketed as an ideology today to give it profundity. It is heralded as an era of “perennial prosperity”. It is a pity that our country falls for such spurious products.

As integration of the global economy is a desired goal, there was no serious opposition to globalisation. In fact, most people supported it. But the true objective of globalisation has remained hidden. The Manmohan Singh’s of the world have not become wiser. They are content with the fact that capital in billions is now available to the capital-starved developing countries.

In just a decade, however, the world has lost its faith in globalisation. Reason? Rampant use of capital for speculative purposes. As a result, two crises have already devastated the world — the Mexican crisis and the Asian crisis. Serious differences have cropped up between US and Asian economic authorities.

Asia reacted predictably. It re-imposed controls. Camdessus of IMF cried: “Controls are dangerous”, and Greenspan of the US Federal Reserve said: controls were “decidedly mistaken”. That millions of Asians were ruined produced no sympathy in them!

The Americans believe that Asia is at fault, that “crony capitalism” is what led to the Asian crisis. True “crony capitalism” is rampant in Asia. In almost all countries, economies are being run for the benefit of leaders in power and their cronies and kins.

It is also being alleged that Asian banks are not transparent. America wants their working to be made open. But what about hedge funds which go into speculation? Are they not to be made transparent? No, says Wall Street. It wants it to remain in the dark.

Asia has now veered round to the view that the crisis began with financial liberalisation under IMF guidelines, fuelled by financial inflows. Asia was not in need of capital. It had the highest saving rate — as much as 35 per cent. And it was finding it difficult to find investment opportunities. So the inflow of capital was channelled into speculation. Soon the flow turned into flood, and the Asian economies collapsed one by one.

In the argument between Asia and America over the crisis, Europe has taken the side of Asia. For obvious reasons. With plans to launch the Euro, the EU leaders were thinking of Europe as a new model. It is closer to the heart of Asia.

The European Union and Asian countries believe that long-term solutions to this problem must involve regulations. The USA has suggested a new financial structure, with transparency, accountability, uniform standard for all and free capital movement.

The EU does not think that the world is ready for “uniform standards”. Instead, it has suggested financial zones, each with a degree of protection through government control on the movement of capital. Asian countries agree.

The USA naturally, is opposed to these ideas. And it has become apprehensive over the coming together of Asia and Europe. It has a powerful vested interest in attracting the capital flow. This is because it needs the savings of other nations (it is a major borrower) as its own saving is the lowest for developed countries. This is easier if the world financial markets are integrated.

There is another reason. The USA wants the rest of the world to play to American rules: for example, control by shareholders, free labour market, low taxes and minimal welfare costs. If these are universalised, America feels, the US MNCs can move about more freely from place to place.

The USA sees free capital movement as a wedge to move other economies in the way it wants. The US Treasury has been campaigning for capital liberalisation precisely for this purpose. In fact, America went to the extent of getting the IMF constitution amended.

America played yet another game. Many developing countries were opposed to the opening up of financial services, while it was being negotiated by the WTO. Yet, after the Thai crisis, Asian leaders gave up their opposition and signed the WTO agreement that opened the financial institutions (banks, insurance, securities) to US firms. The Asian leaders had no choice. Refusing to sign the agreement would have deprived them of IMF help to overcome the crisis.

For how long can these arbitrary ways prevail? For half a century America dominated the global economy. The Bretton Woods agreement allowed it to print dollars in unlimited quantities. The gold backing made dollar acceptable. Yet President Nixon abolished the gold backing at one stroke. The huge dollar stocks with the USA helped it to finance its investments abroad, to finance its wars and rearmament and to lend huge amounts to the indigent nations.

Today the USA is the largest debtor of the world. But it is also the richest country. And it wants to stay the richest. But how? Gone are the days when nations made money by selling goods. These are days of Bill Gates. But beyond Bill Gates are easier ways to make money. How? By speculation. America has unlimited financial resources. It can live on speculation. True, millions can be ruined, countries can go bankrupt. But Wall Street bankers, brokerage firms and American MNCs are bound to prosper.

And that is precisely why capital flow should be regulated and globalisation checked.

75 YEARS AGO

August 27, 1924
Within or without the empire: views
of C.R. Das

“IT was often asked whether it would be Swaraj with the Empire or without it. The people wanted their liberty and freedom. They wanted the right to establish their own system of government. If that was consistent with their being within the Empire, they had no objection to being in the Empire. If that was inconsistent with their being within the Empire, their love for freedom was greater than their love for the Empire. Therefore, they should not try to fathom what was going to happen in the future. Let them rest content with the struggles of today. Let that struggle be continued on the right principle and that was that they must have the right to govern themselves, they must be the judges of what system of government would not suit them. It was not for others to constitute themselves to be their judges.”