Wednesday,
March 14, 2001, Chandigarh, India
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M S Gill owes an explanation Innovative schemes Waiting for rabi MSP |
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BUDGET
2001-2002 Australia’s problems: lesson for India
Who will gain from Tamil Nadu alliance? Pak sympathy for Taliban shows at UN
Smoking, drinking proving
fatal in USA
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Budget of class interests If Yashwant Sinha finds himself on cloud nine he cannot be blamed. Never before, or perhaps only just once before, has a Finance Minister received such full-throated hosannas for his budget proposals. Predictably enough, the paeans have come from the privileged precincts of our chasmic social order and particularly and most cheerfully from big business and economic predators, existing as well as wannabe, at home as well as abroad. Whether it was bad lighting or plain envy, the “dream merchant” of the Gowda-Gujral vintage, P. Chidambaram looked distinctly green in a Doordarshan discussion on the budget night. Following the Gujarat havoc the Prime Minister had repeatedly warned of a harsh budget, which many translated to mean, among other things, a hike in the higher income-tax rates. He is reported to have advised even a harsh railway budget but when Ms Mamata Banerjee refused to oblige (undoubtedly for partisan electoral reasons), there was a further spurt in the fear that the main budget would deal a majorly incremental blow to the moneyed sections. Even otherwise the picture was none too rosy for them; what with all the ills besetting the economy and the social sector in the dumps, the need to marshal additional revenues could not be overlooked. Direct taxes apart, fancy consumer goods, especially luxury goods, including those of the imported variety, would become dearer, they feared. Praise be to the Finance Minister, none of these fears came true. Not only was there no increase in the highest income-tax rate, which at 30 per cent is lower than in most of the rich as well as poor countries, even the surcharge was removed. Needless to say, if your income is in six and seven figures, the 15 per cent drop in the tax adds to a pretty sizeable bonus. And a whole range of goods too will now be cheaper for you — things like imported leather items, foreign liquor, toys, pickles and coke! But it is not just the tang and the zing; to the rich and the very rich what makes Mr Sinha a zinger Finance Minister is that even cars and limousines will be cheaper now, at the minimum by as much as the per capita income in this country and in several cases by three times as much! What we see here is the by now all too familiar Marie Antoinette mindset: can’t afford dal-roti, eat pickles and imported food items; no water in your tap or no tap in your village, drink beer or go for a coke (even in many parts of progressive Haryana, according to a recent DD documentary, people still have to trudge 10 kilometres to and fro for water); no public transport, buy yourself a car (what petrol scarcity, what pollution?) ..... The catalogue is long and will soon be longer still when another 1000 items, including foreign spirits, will be brought on the free import list! But it is not only cheaper toys and tipple and coke and cars that explain the rapturous reception to the budget in our socio-economic stratosphere. Capital itself will now be substantially cheaper as a result of the slashing of interest rates. Industrialists and businessmen can borrow all they want at the new low rates, invest it in whatever they want, and earn their megaprofits. No licence, no restrictions and no permission needed. Workers and labour laws coming in the way? Not to worry; in the emerging hire-and-fire culture there will be no hassles on that count. Already, thanks to Mr Sinha, if you employ fewer than 1,000 workers you can get rid of them en block by simply closing down without even the semblance of a frown from our modern-day welfare State. It is not only a shift from workers to employers and capitalists, there is in the continuing “reform” strategy an overall shift from the weaker to the stronger sections — both in the national context and within specific sectors and sections. The poorest among us, the demonstrably wretched of the earth called India, whose uplift should be the first charge on governmental concern and coffers in a genuine democracy, have no place in the unfolding scheme of progress; the “new economics” has simply written them off. If this is an exaggeration it is exaggeration of a fact. Is there anything concrete in this budget that would even in a small way make life less miserable for these voiceless millions who constitute at least one-third of the population? So much for two out of six Indians. What of the other four? Three of them stand squeezed or harassed or positively disadvantaged. Take even the better-off among them: While the budget has made elitist and luxury goods cheaper, relatively mass consumption goods like sugar, tea, coffee, toothbrushes, bulbs, biscuits and even matchboxes will now cost more; while mobile phone prices and tariffs stand slashed, postage goes up — even the “lowly” postcard is to cost twice as much. This is how the tax cuts amounting to a whopping Rs 5,500 crore are to be offset in Mr Sinha’s proposals. Even as the rich as a class have reasons to celebrate, the corporates among them are simply rejoicing over the low interest rates. That this has caused a slashing of interest on bank deposits and, therefore, will result in seriously eroding the value of savings, especially of small savers and pensioners, is evidently of little concern to Mr Sinha and company. A classic case of robbing Peter to benefit Paul! Additionally now, interest on your deposits amounting to Rs 2,500, as against Rs 10,000 so far, will be tax-deducted at source. If you are not liable to income tax you have to regularly file the exemption forms; in short, more harassment, more paper work and more waste of time for both the savers and the banks. The idea (applaud, applaud!) is to widen the tax net. Widen the net to catch the shrimp even as sharks swim freely and devour unrealised revenues! There are hundreds of crores of rupees in identified tax arrears which remain uncollected for years together, but if your lifelong savings earn interest of Rs 2,500 you have to pay the tax even before the interest is paid to you! This is patently discriminatory and most unfair. Even if some small savers did evade the tax, the government’s resolve to nab them though mega-evaders are not touched shows how caring the dispensation is and towards whom! Any government with a minimal sense of equity would exempt interest on small savings altogether. The loss of revenue could be made up if even 5 per cent of big evaders are honestly pursued and made to pay, or if big agriculturists are taxed even at the lowest rate. But given the “reform” psychology, such as it is, such ideas are sacrilege! The buzzword is growth rate and investment, and all policies have to be geared to that unmagnificent obsession. That the growth rate in the decade of reforms has been lower than earlier does not embarrass the reformers. Nor does the anatomy of the so-called growth. Growth of what? For whose benefit? Similarly, investment in what and to whose benefit? If the country produces 10 million luxury cars and 20 million home theatre systems, it will boost the growth rate, but would that be national progress, would it benefit the common man? Policies and investments that would benefit him are either conspicuous by their absence or confined to long-term promises — areas like employment, education, health care, housing. Thus, while benefits and bonanzas for the rich and corporates are measurable and immediate, things that would make a qualitative change to the lives of the teeming millions are confined to the provenly treacherous trickle-down notions. Intrinsic to these notions is the equally spurious theory of ultimate benefit. Disinvestment (selling off public sector units) is ostensibly aimed at releasing resources for the social sector. But is there any evidence of this alleged connectivity? Similarly, the hire-and-fire policy will, we are told, ultimately increase employment! In fact, these policies along with opening the floodgates for imports have or will hit people hard. Already, according to one report, liberalised imports have caused the closure of seven lakh small (and several thousand larger) units, rendering an estimated four million people jobless in the last three years. With hundreds of more items slated to come on the free import list — items including food products, fruits and vegetables, and a range of engineering goods made in the small sector — unemployment and destitution is set to increase further. But who cares? Certainly not the rich and the powerful, and it is they who call the shots in our republic. They influence government policies and decisions and when these are actually as per their wishes and diktats, as in all the “reform” budgets and as in Mr Sinha’s latest proposals, the result is euphoria in teak-panelled boardrooms and posh drawing room. An editorial in this newspaper hit the nail on the head: This budget is “the delight of industrialists and fundamentalists among reformers and odd economic thinkers”; the common man “has much to worry about”. The writer is a veteran commentator. |
Australia’s problems: lesson for India Australia is right now beset with problems akin to those India faces so far as its politics and economic situation are concerned. There is an extreme right-wing backlash that is gaining ground and growing despair over the impact of globalisation. Elections to two State assemblies of West Australia and Queensland have witnessed the emergence of Pauline Hanson’s ultra-rightist One Nation Party. Even though the party has won only two and three seats, respectively, in the two States, in the elections held over the first fortnight of February, the media has gone overboard in investing it with serious consequences for the present ruling coalition government led by Prime Minister John Howard. Even in the two States the party is in no position to influence State parliamentary politics nor play a decisive role in Cabinet formation and yet even prominent newspapers have devoted pages after pages to portray her as a significant factor in national politics. Ms Hanson won the seats on the strength of the current anti-Howard feelings all over the country over the imposition of a 10 per cent general Sales Tax (GST), a rise in petrol prices and the preparation of a Business Activity Statement to be filed by small businesses for the first time. Last year’s Olympic euphoria has evaporated by now as hard realities surface. The two elections have given an edge to the Leader of the Opposition, Mr Kim Beasley and his Labour Party, which has won resounding successes in Western Australia and Queensland. He is now headed to become the next Prime Minister, when elections to the federal Parliament are held by the end of the year. The elections in Queensland were influenced by the Auditor-General’s report which found that $2.9 billion collected through fuel-taxes (petrol, natural gas and diesel) for funding the maintenance of roads, had been spent in other areas. The government also committed the folly of putting the sale of the telecommunications giant, Telstra, on the national agenda just before the elections. Beasley capitalised on both issues. It was clear that he was feeding the grievances of those left behind by globalisation. This will fuel the anti-incumbency factor for Mr John Howard, now at the end of his second term in office. The media continues to overreact to Ms Hanson despite the fact that her vision for Australia “remains paranoid, ungenerous and unworkable”, as The Age editorialised. Queensland is Ms Hanson’s home State. Even though elected to the Queensland parliament in 1998, she did not contest this time. Today she provides a touchstone for all elements disillusioned by the politics and policies of the major parties — the Labour, Liberals and Democrats and the National Party. Ms Hanson has fully exploited voter dissatisfaction. Her strategy has been to unseat sitting MPs. She stands, among other things, for the return of capital punishment, free issue of firearms, end to any commercial or industrial reforms, opposition to any concessions to the Aboriginals, taking education out of any national compulsory agenda, and opposition to all non-White migrants. Today Australia has a quota system for allowing migrants of brown, yellow and black pigmentation. Some of these aspirations would look quaint in the 21st century. True, many of them centre on economic considerations, but the solutions offered by Ms Hanson are not what even sane political considerations would sanction. Till now it has been the contest for the marginal seats that has sustained the hopes of One Nation. The lessons Australia’s neighbour, New Zealand, learnt from hurried privatisation in the wake of globalisation are dawning upon Australians. In a few years in the mid 1980s, New Zealand brought in deregulation, cut taxes, sold off State-owned industries allowing market forces to prevail with a vengeance. All this was done in the background of New Zealand’s long record of setting global trends. After all, it was the first country to give women the right to vote, first to create a welfare State, first to ward off all nuclear powers and first to pull down the State in favour of the market. The results were disastrous. The country was soon reduced to a branch office economy. The current trend was initiated by a left-wing Alliance Party in a new kind of a Labour government. In a year, the government led by Mrs Helen Clark, is fast moving away from the effects of globalisation. During the year it has been in power, it has escalated the top rate of income tax for the high-income groups, increased pensions, reduced student fees and debts and conceded trade union rights. Some of these could have the effect of reversing the global trends towards privatisation. It has already re-nationalised industries and seeks to do it with the railways, sold of a decade ago. The privatised rail service, Tranz Rail, has invited severe criticism for declining safety standards and failure to extend rural services. Tranz Rail is not even owned by New Zealanders, but by a company in Wisconsin in the USA. Along with the railways everyone of the country’s major banks, including the Bank of New Zealand, is in foreign hands. The Alliance Government has now proposed setting up a new bank, the People’s Bank, offering cheap services and low cost loans, owned and operated by the government, via the post office (the only service the government did not sell off, unlike in Australia, where it is privatised.) All this is open admission by Mrs Clark that market fundamentalism has failed. Not only was business performance at rock bottom, but growth was also slower than anywhere else in the developed world. Labour called a halt to the mad race to privatise more and more “until eventually the government would tax nothing, regulate nothing and do nothing,” as Mrs Clark says. The new Government has kept market forces out of health, housing and education to “rebalance” the economy and society. In Australia, petrol prices are among the highest — going up to 99.9 cents a litre during weekends. Oil companies make a profit of $330 billion a year. (The Australian dollar is about Rs 25) Mr Beasley has not yet revealed how he will unroll the GST, having opposed it. He has criticised the GST on sanitary products, books, nappies, funerals, children’s clothing, gas, electricity, heating, shoes and eczema ointments. Mr Howard on March 1 announced reduction of excise by 1.5 cents a litre of petrol, amounting to a loss of $2.6 billion a year in revenue. Mrs Hanson has not revealed what she would do with the GST if ever in power. Except for extreme right-wing rhetoric. One Nation has little to its credit since it made its mark in Australian politics in 1998. It has not yet enunciated any firm policies or preferences. In the last Queensland elections 11 One Nation candidates were elected. Within weeks, all of them deserted the party, contributing nothing to better government. Six of them formed the breakaway City Alliance Party, four sat as Independents and one resigned. All six City Alliance party members have been defeated in the recent elections. The only member elected in Western Australia also left the party. From the ashes Mrs Hanson has risen once again. The one common cry of Labour, Democrats and Liberals against Mrs Hanson is to urge the people to concentrate on policies, not personalities. The Labour opposition has said the Australian economy is on the down slide, drifting towards international irrelevance. Australia is only 12 per cent of the global economy. Almost all Australian companies doing business with Europe and North America are taking their headquarters nearer their areas of business. The only alternative for Australia to survive economically is to change the bulk of their activities to Asia, which offers prospects of scale, markets and capital that can sustain Australian-based multinational corporations. The writer is on a visit to Australia.
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Who will gain from Tamil Nadu alliance? Chief Minister M. Karunanidhi and his bitter adversary, Ms Jayalalitha, have firmed up their electoral alliances, led by the ruling DMK and the AIADMK, respectively, for what promises to be one of the closest fights for power Tamil Nadu has witnessed over the past three decades. Both leaders are confident of their alliance “sweeping the polls”, the former by the record of his Government in the area of “pro-poor development”, and the latter by the strength of its constituents and possible anti-incumbency factor. However, notwithstanding the clear battlelines, the campaign for the April poll will bring to the fore charges and countercharges and the embarrassments which the AIADMK-led alliance has had to endure in being put together. Ms Jayalalitha herself faces the prospect of disqualification in view of her conviction in a few of the series of cases of corruption brought against her systematically by the Karunanidhi Government. A major embarrassment for the Congress/TMC, which the DMK will exploit, is that while being part of the AIADMK-led alliance in Tamil Nadu, they will “delink” the alliance for the Pondicherry elections, the Congress having rejected the AIADMK-PMK seatsharing formula in the Union Territory, where the Congress has run the administration. The former Finance Minister, Mr P. Chidambaram’s open disagreement with his party leader, Mr G.K. Moopanar, on the TMC joining the AIADMK-led alliance will also be taken advantage of by the DMK and its NDA associates. It is difficult to predict the outcome at this stage and much would depend on the skills that Ms Jayalalitha could employ as she reaches the people directly in the coming weeks to test whether the “Amma” factor works. Whatever the attributes of Mrs Sonia Gandhi as a vote-gatherer for the Congress, her contribution in Tamil Nadu is bound to be negligible. It is the TMC that could hope to salvage a good number of the 30 odd seats it has held in the present Assembly. The LTTE-factor will also come into play but both fronts have outfits openly supportive of the Sri Lankan Tamil movement for a homeland, the PMK (Pattali Makkal Katchi) of Dr Ramadoss in the AIADMK alliance and the MDMK under Mr Karunanidhi. Dithering the procrastination for weeks preceded the tie-up between the TMC, whose leader, Mr G.K. Moopanar, negotiated on behalf of the Congress, and Ms Jayalalitha. The latter preferred to do business more with the TMC, which could provide some strength and secular character to the alliance. She also calculated that there was no hope for any third front in Tamil Nadu which the TMC and the Congress thought of for a while but without even the Left parties willing to go along with it. In 1996, the DMK in partnership with the TMC inflicted a humiliating defeat on the AIADMK, ousting the Jayalalitha Government. Two years later, the TMC, a breakaway faction of the Congress, parted company with the DMK which was moving closer toward the BJP-led coalition at the Centre. Now, the TMC and the Congress have decided to stand together. The Congress party in Tamil Nadu, which ruled the State till 1967, had to align itself with one or the other of the two regional parties — the AIADMK or the DMK — in order to remain even as a marginal force in State politics. Dissensions in the Congress led to the emergence in 1996 of the Tamil Maanila Congress led by Mr G.K. Moopanar who personally has a loyalty to the Nehru-Gandhi family. The Congress had then aligned itself with the AIADMK although the former Jayalalitha regime stood discredited. After the debacle for both the Congress and TMC in the parliamentary elections of 1999, these two wings of the Congress started moving closer, when the TMC found the going was getting tougher for it to go alone to restore the ‘rule of Kamaraj’, the last Congress Chief Minister of the State. Ms Jayalalitha feels the AIADMK has been fortified by the Pattali Makkal Katchi of Dr Ramadoss deserting the National Democratic Alliance (NDA) and entering into an electoral pact with her. The PMK has a strong base in the northern districts of the State backed by the Vanniyar community. The PMK has been allotted 27 seats to contest in the 234-member Tamil Nadu Assembly while the TMC-Congress has been given 47 seats by Ms Jayalalitha (TMC agreeing to 32 and 15 seat-sharing between them). The CPI (M) and CPI form part of the AIADMK-led alliance though the Left parties have not been happy with a total of 20 seats initially offered by the AIADMK leader. Ms Jayalalitha has taken care to ensure that the AIADMK fights on its own in a good majority of the constituencies as she is determined to form a Government of the AIADMK without any power-sharing arrangement as at present.
(IPA) |
Pak sympathy for Taliban shows at UN To defend the indefensible should be difficult as well as embarrassing, but for Pakistan with its softcorner, sympathy and support for the Taliban, it is no problem. Pakistan’s representative at the UN was the odd man out during the General Assembly debate last week on the Taliban’s action in demolishing the ancient artefacts in Afghanistan, including two Buddha statues in the Bamiyan valley. Speaker after speaker unequivocally condemned Taliban’s vandalism, but the Pakistani delegate, while joining in the appeal to protect Afghanistan’s cultural heritage, ventured to suggest that the Taliban was driven to extreme measures because of the international community’s hostility to regime. Mr Masmasood Khalid told the General Assembly that if the international community wanted the Taliban to change its behaviour in accordance with established norms, it must use persuasion, not intimidation and must try to convince, rather than rebuff. If the international community condemned Taliban for its misdeeds, it must also commend it for its achievements, as in the case of destruction of poppy crop in Taliban-controlled territory, which had been achieved at the peril of Afghan farmers. Although historic relics were important, so were human lives, Mr Khalid argued, and said Afghanistan was in the grip of a grave humanitarian crisis. After decades of war and drought, sanctions recently imposed by the UN Security Council were, in his view, “the last straw that broke the camel’s back”. The UN, he said, needed to address the present unfortunate situation. It was necessary to consider the “bigger picture” — restoration of peace and reconstruction of Afghanistan. Otherwise, Mr Khalid said, there would be no end to the cycle of misery in that country or indeed to these matters that evoked the consternation of the international community. Representatives of two other Muslim countries participating in the debate — Egypt and Iran — faulted Taliban for its acts of vandalism against ancient artefacts, pointing out that they reflected badly on Islam. The Iranian delegate, Mr Hadi Nejad Husscinian, charged that the Taliban had brought much suffering on Afghan people by refusing to engage in meaningful peace process, by drug trafficking, by terrorism, and by harsh restrictions that were entirely alien to the compassionate teachings of Islam. The representative of the ousted government in Afghanistan, Mr Mohammad Yunus Bazel, (The Taliban is not recognised by the UN), put the onus on Pakistan for the recent actions of the Taliban regime and said the military junta in Islamabad was the main source of religious extremism in that part of the country controlled by the Taliban. He urged the Organisation of Islamic Conference (OIC) to “break its silence” and clearly spell out its position regarding the words and deeds of the Taliban practised in the holy name of Islam. The resolution of the General Assembly, sponsored by Germany and more than 90 other countries, deplored the actions of the Taliban, describing the destruction of the ancient statues as “an act of intolerance that struck at the very basis of civilised co-existence and was contrary to the real spirit of Islam.” The resolution was adopted without a vote, but the general assembly’s response, like many of the past actions of the world organisation in similar instances of defiance of the international community, was too little and too late.
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Smoking, drinking proving fatal in USA Smoking, drinking and illicit drug use cause “more deaths, illnesses and disabilities than any other preventable health problem in the United States today,” says a news report. The document, entitled “Substance Abuse: The Nation’s Number-One Health Problem,” commissioned by the Robert Wood Johnson Foundation, says treatment for addicts in the United States is “severely underutilised,” despite the fact that “the economic cost of substance abuse is staggering, estimated at more than $414 billion in 1995.” Of the more than two million deaths each year in the USA, one in four is attributable to alcohol, tobacco and illicit drug use, it says. It says early use of alcohol, tobacco or illicit drugs is often a strong risk factor for addiction. Substance abuse by young people under the age of 20, and particularly by those under the age of 15, increases the likelihood of substance abuse problems later in life, the report says. While the report characterises addiction as “a chronic, relapsing health condition” that often requires prolonged and repeated treatment, it nevertheless advocated treatment, citing benefits, including reduced crime rates and enhanced productivity. Overall, “treatment — even with multiple treatment episodes — is less expensive than the alternatives of incarceration and untreated addiction,” it says.
IANS
New look at olive oil New studies that cast doubt over current healthy-eating beliefs make great stories — papers love the headlines. The latest study which could cause chaos, published in The Lancet, suggested that olive-oil-producers and food manufacturers have been making misleading claims about olive oil’s health benefits. This critical report draws our attention to the fact that campaigns aimed at supporting the olive-oil-producing farms of southern Europe have been sponsored by the European Union to the tune of more than £ 130m over the past 10 to 12 years. It goes on to suggest that the assertions used to promote olive oil — including the claim that a diet rich in olive oil can reduce levels of total cholesterol and low-density lipoprotein (LDL, or the ‘bad’ sort of cholesterol) and hence reduce the incidence of heart disease — have painted an unjustifiably rosy picture. It also stresses that a diet rich in olive oil can just as easily lead to obesity as one that contains an equal amount of another type of fat. The report’s findings are that other monounsaturated vegetable oils, such as sunflower oil, may reduce LDL and total cholesterol levels slightly more than olive oil.
(Observer)
State as drug producer Thai bureaucrats are not known for their ingenuity, but a statement emanating last week from a senior police officer indicates that they seem to be changing their ways — for the worse. Sunthorn Saikwan, the Deputy National Police Chief, has told the city Police Superintendents that the state should start producing and selling metamphetamines. Known as “ya ma and ya ba” in Thailand, these are the two drugs that most young people are addicted to. Presently they are smuggled in from Myanmar and the government has been unsuccessfully attempting to stop the trade for years.
WFS |
75
YEARS AGO The unveiling ceremony of the portrait of Sir Shadi Lal at Gurgaon Senior Sub-Judge's Court house was performed by the Hon'ble Diwan Tek Chand, ICS, OBE, Commissioner of the Ambala Division on March 6, 1926. This was in commemoration of the new building of the Senior Sub Judge's Court erected by the sanction of His Lordship An interesting programme was chalked out. L. Khan Chand Janmeja, Senior Sub-Judge's was very tastefully and artificially decorated and transformed into a beautiful garden. |
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