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Speaker’s walkout
Asia as leader
Rape of justice |
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Selecting judges
A tale of three cities
Capital outflow
PM should tackle infirmities in market economy Chatterati
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Speaker’s walkout
ONE criticism leveled against the communists is that they have “degenerated” into parliamentary parties and have long abandoned the revolutionary path. The communists defended their change of route by saying that they would wreck the system from within. And, it must be conceded they are doing their best to vitiate parliamentary culture by launching a personalised attack on the constitutional office of the Speaker. In the past there have been instances of the Lok Sabha Speaker’s impartiality being questioned or his loyalty to a particular party becoming a matter of concern. However, as Mr Somnath Chatterjee is discovering to his horror, it is unprecedented for a Speaker to be so vindictively targeted — as is being done by the CPM and the CPI — for his lack of partisan political conduct. Which explains the provocation for Mr Chatterjee resorting to the extreme of walking out of the House over which he was presiding. The Left has a number of grievances against Mr Chatterjee, who is expected to be beholden to these parties for his becoming Speaker, though it was a decision by the Congress-led UPA and supported by the Left. They expect him, while in the Chair of the House to place the interests of the party above that of Parliament. The Left wanted him to resign as Speaker and behave like a CPM member, when these parties withdrew support to the UPA Government. He refused to be browbeaten into towing the party line and, at all times, upheld the dignity of his constitutional office. He was expelled from the CPM, but Mr Chatterjee did not discriminate against the Left in Parliament. But the CPM and the CPI, more than any other Opposition party, are out to torment and humiliate the Speaker for not giving in to their partisan demands. He disallowed a privilege motion against the Prime Minister and converted an adjournment motion, for which notice had been given, into a discussion under Rule 193. This resulted in motives being imputed to the action of the Speaker, making him step out of the Lok Sabha. These actions and tactics of the Left are not only disrespectful of the Speaker’s office but also betray contempt for Parliament itself. The Left is free to discard its parliamentary credentials, but not by demeaning constitutional offices.
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Asia as leader
THE primary aim of the two-day Asia-Europe Meeting, better known as ASEM, which concluded in Beijing on Saturday, was to finalise concrete measures for the G-20 summit called by US President George Bush in Washington on November 15. Such collective effort is definitely required so that another global financial crisis is not allowed to happen again. Led by President Nicolas Sarkozy of France, Europe wants to rally Asian support to tackle the financial turbulence and ensure that the US does not get away with “principles and generalities”. So far each country or group of countries has been taking its own steps to escape the meltdown effects, according to its own wisdom. At a separate breakfast meeting on the sidelines of ASEM, East Asian nations agreed to set up a $80 billion emergency fund, which will help member countries cope with a liquidity crunch. For a change, European leaders asked Asia to lead the way out of the crisis. In this context, the Indian Prime Minister, Dr Manmohan Singh, also an economist of repute, stressed the need to “declog” the global credit markets, set up a global monitoring authority and asked the IMF and the World Bank to increase spending on infrastructure projects in the developing nations. Interestingly, President Bush has personally asked Dr Manmohan Singh to attend the November 15 meeting. The European Union, too, is brimming with ideas. It wants better supervision of banks, stricter regulation of hedge funds, fresh rules for the credit rating agencies and changes at the IMF. While ASEM broadly agreed on reforms for the financial markets, there was no consensus on details. All eyes will now be on the Washington summit. However, the current situation is too explosive to let countries just be silent spectators to the daily destruction of investors’ wealth. Besides, since President Bush is set to bow out of office, he may not commit the US to measures that his successor may find difficult to accept. Still the desire to swim or sink together is so strong that the summit may ultimately yield results.
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Rape of justice
THE nightmare of the Catholic nun from Kandhamal, who was allegedly raped during the communal violence in Orissa, had become worse after the unthinkable happened to her. Following the rape in the burnt down Jan Vikas building, the mob pulled her and Father Thomas Chellan towards the road, while the personnel of the Orissa State Armed Police (OSAP) watched in silence. She requested them to protect her but they did not oblige her. When she went to lodge an FIR, it was recorded after much dilly-dallying. The inspector-in-charge also reminded her of the consequences of filing it, and forced her against giving the details of the crime. Having thus not only failed to stop the crime but also to protect her, how can the policemen expect her to have faith in them? Not only that, the policemen were friendly with the attackers and they even tried their best that she did not register an FIR. And yet, her demand for a CBI probe has been rejected even by the Supreme Court! That is odd. When a CBI probe can be ordered in the Arushi murder case, what is the hitch in doing it in this case? In fact, it is all the more necessary this time. Her statement paints the Orissa police in an extremely unflattering light and it is mandatory that justice is not only done but is also seen to be done. Forcing her to deal with the same set of policemen once again would amount to a second rape. In fact, making her go through the ordeal of a Press conference in Delhi itself must have been a torture for her. It will be meaningful only if it wakes up the conscience of the nation and the ends of justice are met completely and impartially. Her plight has become the metaphor for the humiliation of a community. The nation can raise its head again only if the culprits get the severest possible punishment in the shortest possible time.
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It is in our lives and not our words that our religion must be read. — Thomas Jefferson
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Selecting judges UNION Law Minister H.R. Bhardwaj’s comment that the collegium system has “failed” and that there is a need to streamline the present procedure of appointment of judges has expectedly raised eyebrows in many quarters. He says that the Centre has accepted the recommendation of a parliamentary committee to scrap the present system of appointment of Supreme Court and high court judges. If Mr Bhardwaj is keen on going ahead with his plan, it may put the executive and the judiciary on a collision course which needs to be avoided. The collegium system may have some shortcomings. It is also not transparent. Yet, this system alone is a sure guarantee to judicial independence. In October 1993, a nine-judge Bench of the Supreme Court ruled that in the appointment of judges to the apex court and high courts, the Chief Justice of India’s opinion would have “primacy” over the executive. The same was the ruling on the question of judges’ transfer. Clearly, executive interference would disturb the constitutional scheme that underlines an independent judiciary. According to the elaborate procedure laid down for judges’ appointment, the collegium for approving the appointment of high court judges, headed by the CJI, should take into account the views of the Supreme Court judges who are likely to be conversant with the affairs of the high court in question. They must also take into account the views of the high court Chief Justice. By leaving the assessment to a collegium with a plurality of judges, the Supreme Court wanted to make the appointments as broadbased as possible. However, the manner in which politicians in power bargain for judicial appointments reinforces the fact that the executive branch continues to play a domineering role in the exercise. Remember how the UPA government, under pressure from the DMK, a key ally, had delayed the appointment of judges to the Madras High Court two years ago? One may recall how, in the seventies, the supersession of three seniormost judges of the Supreme Court, the call for “committed judiciary” and the transfer of 16 high court judges struck a death-knell to judicial independence. The proposal of transferring judges from one High Court to the other was challenged before the Supreme Court in the First Judges’ case (S.P. Gupta vs Union of India, 1982). Surprisingly, the Supreme Court held that the CJI’s opinion could be “completely ignored” in the matter of appointment of Supreme Court and high court judges. In the Second Judges’ case (Supreme Court Advocates-on-Record Association vs Union of India, 1993), the apex court overruled this deplorable ruling. It brought back the dignity of the judiciary to some extent and laid down some basic principles. The Chief Justices of the Supreme Court and high courts must adhere to a time-bound schedule so that the posts of judges are not kept vacant for a long period. The CJI, after consultations, should confirm his final opinion to the President within four weeks of the final action taken. If there are objections for the appointment of any person, the reasons must be disclosed to the CJI to enable him to reconsider. The other is the Presidential Reference in July 1998. The President referred nine questions for the Supreme Court’s consideration. These questions related to three aspects: Consultation between the CJI and his brother judges in the matter of judges’ appointments and transfers; judicial review of judges’ transfers; and the relevance of seniority in making appointments to the Supreme Court. The Supreme Court, in response to the Presidential Reference, held that the opinion of the collegium, headed by the CJI, will have “primacy” in the matter of appointments. It is open to the executive to inform the collegium of its objections. However, if the CJI and his brother judges are firm in their choice, that appointment should be made as a matter of “healthy convention”. Similarly, even if two judges have serious reservations about a particular appointment, it should not be made. It also held that the transfer of high court judges is judicially reviewable if it does not comply with the normal consultation process. Above all, merit should be the sole criterion for selecting judges. Though seniority too should be kept in mind, it can be overlooked in cases of outstanding merit and distinction. This brings to the fore the crux of the issue — selecting men and women of high calibre and integrity as judges of the Supreme Court and high courts. There should be no compromise on this because what we have been seeing nowadays is a patent negation of the ideals and values envisaged by the founding fathers of the Constitution. The increasing corruption in the higher judiciary is a matter of serious concern for every conscientious citizen. The gross misconduct of Calcutta High Court Judge Soumitra Sen, the Ghaziabad multi-crore PF scam involving many judges, and Chandigarh’s cash-at-the-door scandal all point to a very disturbing trend. Clearly, judges with dubious record must be purged from the system to restore people’s faith in the judiciary. Chief Justice of India Justice K.G. Balakrishnan’s recent directive for strict scrutiny of names for appointment as high court judges is timely. Having received 14 names from the Madras High Court Chief Justice for appointment as judges against the existing vacancies recently, the CJI has called for more details in respect of each one of them on a 25-point questionnaire from the candidates themselves. Following the CJI’s recommendation to Prime Minister Manmohan Singh to initiate impeachment proceedings against Justice Soumitra Sen, a question arose as to how he was recommended for judgeship in the Calcutta High Court. The CJI’s questionnaire method is expected to ensure that the selection process is not vitiated. The Union Cabinet’s decision on setting up the National Judicial Council (NJC) is welcome. As the common man can file a complaint before the NJC against a corrupt judge, it merits a fair trial. But one has to wait for the final contours of the legislation to determine to what extent the NJC will help check judicial misconduct and corruption. The need to overhaul judicial appointments with special focus on merit and integrity has become imperative. What happened to the proposal on the Indian Judicial Service (IJS) on the lines of the Indian Administrative Service (IAS)? The subordinate judiciary, which is in a terrible mess, will attract talent if the IJS is constituted. The mechanism in lower courts seems to have crumbled today under the weight of mounting arrears. This is causing immense hardship to the litigants. Justice Balakrishnan has also called for weeding out incompetent and inefficient judges. The government ought to examine genuine and need-based judicial reforms rather than tinkering with plans that would compromise judicial independence — the touchstone of the Constitution. The late Nani A. Palkhivala, who was a crusader for judicial independence, aptly said, “An independent judiciary is the very heart of a Republic. The foundation of a democracy, the source of its perennial vitality, the condition for its growth, and the hope for its welfare — all lie in an independent
judiciary.”
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A tale of three cities Somebody
said: "England, with all thy faults I love thee still". We, the Indians, feel no differently, though our faults are far too many for comfort. It is not without a certain amount of shame over our poor road etiquettes that I recount below the three road accidents, to which I was a witness, in the cities of London, Paris and our New Delhi. These say all. The first of these occurred while I was on my return journey to London after a visit to France. Our bus driven by one Nick collided with a car in Paris. Fortunately, no one was injured. Going by the type of police response that we have in our own country in case of road accidents, I had a sinking feeling. I thought we would be stuck at the spot for hours and then in the end our vehicle might be impounded, leaving us to our own devices to go back. After all, vehicles from two different countries were involved in the accident. But, this is what actually happened. Nobody, except the drivers, got down from the vehicles. In a matter of minutes, a French Police car appeared on the scene out of nowhere. They examined the scene of accident and asked both the vehicles to pull to the extreme right of the road (France, like the bulk of the world, is a right hand drive country). Nick returned to the bus and requested a French-knowing lady to come down and help him in explaining his case to the police. She readily obliged. In around 20 minutes of the accident, we were on way to London again. During my recent visit to Britain, two cars driven by ladies banged into each other close to our residence on Ashford Road. They came out and wished each other. They then rang up the police and in the meanwhile exchanged information about their insurance policies. They spent a few minutes before the arrival of the police in friendly conversation. With the police formalities over, they went their ways shaking hands warmly. Thus, London and Paris, more or less, stood at the same high pedestal in the matter of civil behaviour, their serious politico-lingual rivalries notwithstanding. The third accident I witnessed occurred in Delhi. There were again no injuries and not much damage to the cars involved. Still, two fellows bolted out of the vehicles fuming and flew to the throat of each other, each presuming that the fault lay entirely with the other. Nearly 50 spectators collected in a circle round them to see the fun. It required quite some sane effort to separate the two agitated boors. Finally they withdrew to their cars, still gnashing and growling at each other. Obviously, they hardly had any faith in the police or law in the matter of dispute resolution and were keen to settle the matters on the spot. Our stable family life and many other social values are the envy of the West. Why are we then losing out on the civilisational scale on such silly
counts?
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Capital outflow THE winner of the 2008 Nobel Prize for Economics Paul Krugman has said that the United States is plunging into a “nasty recession” with a “lot of suffering” to come. “Sometimes markets fail, and that’s when labour laws and government regulation are necessary correctives.” In other words, he was saying that capitalism is magnificent, but it does have its drawbacks. The views of the Nobel laureate will be taken seriously by the US presidential front runners and this could shape the economic policy of the US in the coming times purely because the two main candidates do not have a clear path of how they will bring the US out of the crisis of confidence that it is facing. Sample this: Republican front runner John McCain’s admission that economics isn’t his thing. “The issue of economics is not something I’ve understood as well as I should,” he says. “I’ve got Greenspan’s book.” Another statement reads: “Main Street is paying a penalty for the excesses and greed in Washington, DC, and in the
Wall Street. There’s no doubt that we have a long way to go, and obviously stricter interpretation and consolidation of the various regulatory agencies that weren’t doing their job that has brought on this crisis.” Democratic front runner Barack Obama suggests a long-term tax-cut plan to keep the slump from “morphing into a drastic decline in consumer spending.” The chances are that there could be stricter policies and a more regulated role of capital in the US in coming days. If financial conservatism is the new idea then it could be bad news for developing economies like ours who are coupled with the US and depend on the capital for our stock and money markets. With no clear plan to pull the economy out of the crisis the prospects of recession look bright as solutions remain hazy. So what will it be for a country like India? In the past few days Finance Minister P Chidambaram made every possible effort to cheer the mood of foreign investors, who are sprinting for the exit in large numbers. The question emerging from the US recession is: will India attract foreign investors to its money and stock markets in the immediate future? There are some recently compiled statistics that could sour the mood of any investors. Last year around June 2006, the Sensex stood at 9800-10,000 levels, then shot up to 20,000 levels in January 2008 and now it is back to the same level of June 2006. Economic indicators show that last year inflation was 5 per cent on an average which has now doubled to 11-12 per cent. Trade deficit (more imports than exports) stood at $12.6 bn mid last year, which has increased to $63 bn levels this year Industrial production was more upbeat at 9.6 per cent last year, but this year growth has been creaking at 3-4 per cent. GDP growth has slipped from 9.6 to 4.9 per cent this year. Exchange rate dropped from Rs 46 to a dollar to Rs 50. Government borrowings this year have ballooned to Rs 1,16,890 crore as against last year mid of Rs 77000 -80000 crore. The RBI’s aggressive dollar sale to make payments to fleeing investors has seen a drop in foreign exchange reserves to $ 265 bn from the level of $ 320 bn in May- June last year. So if the numbers are looking bad, then how will foreign investors get attracted to the India story at a time when each emerging economy is competing equally? A study carried out by Carmen and Vincent Reinhardt published by the National Bureau of Economic Research titled “Capital Flow Bonanza” correlates capital flows and integration of economies. The study illustrates that as countries get richer and more integrated with
global finance the vulnerability to capital inflows and outflows tends to
fall, despite a crisis in large economies like the US. Besides, Reinhardt’s show that the big problem is that capital flows are
endemically boom-bust and so fiscal policy should be used to smooth such cycles. Besides, the government
should also reduce deficits or surplus during bonanzas. All in all, they say that capital flows can be a reward for good economic behaviour. Finally, the solution, according to the study, lies in liberalising the financial markets. So the UPA government in its last six months could still manage the fiscal targets by prudent fiscal management and cutting down on unproductive expenses, which it has only been saying, paving the way for the next government to kickstart the financial sector liberalisation process speedily to attract foreign capital. More importantly, the challenge lies in restoring confidence in our banking system. Despite infusing liquidity in the system the banks have stopped lending to one another and to individual customers purely for the fear that they do not know how long liquidity will last. Unless the liberalisation process is carried out, it will be difficult for India to decouple from the US. In this regard, India could be a trendsetter amongst the developing economies for carrying out urgent reforms with utmost responsibility and alacrity. Needless to say, that the nasty recession in the US requires hasty decisions on our part and it will be a perfect welcome mat to invite foreign capital.
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PM should tackle infirmities in market economy Speaking
at the business luncheon in Tokyo, Prime Minister Manmohan Singh made a significant statement: “ Nor do we want to remain vulnerable to infirmities in international surveillance, supervision and regulatory mechanism in future”. The Prime Minister has not identified infirmities in the supervision and regulatory mechanism at the international level. However, being an acknowledged economist the world over, the Prime Minister must be aware of the fact that the capital or open market economy system not only hates but also resists with all its might any mechanism that is planned or proposed to regulate, supervise and scrutinise it by any government. It was Dr Manmohan Singh, who as the Finance Minister in the 1990s, initiated the process to switch over to an open market economy model from a mixed economy model. The middle class that celebrated the opening of the economy during the past 15 years has now started developing doubts about the new economic order in the country. In fact, some sections of the middle class especially the white color job class, have started having the feeling that they are being “robbed” in the new economic order. The middle class is feeling shaky. There are reasons for it. In spite of an increase in the income of the middle class several fold in the past few years, its savings have come down significantly. The growing expenditure on education and treatment of various ailments has created a sort of insecurity among the salaried class and others having limited means of income. More jobs have been created in the private sector with fat pay packets but job security has been reduced to zero. What happened to the Jet Airways employees is the latest example. As no social security system (pension system) has been put in place and corporate employers have been allowed to adopt a hire and fire system, employees and workers, who have been helping the manufacturing and service industries to earn billions of rupees, will be living in a financially insecure environment after retirement. Private universities have come up. Medical cities are coming up. However, the Union Government as well as state governments have not put any regulatory system in place to protect the interests of people from private educational and medical institutions fleecing people without any check and accountability to any one. Educational institutions and private hospitals, being run with a profit motive, have become new blood suckers. Indoor treatment for minor ailments in a private hospital costs thousands of rupees. There is no forum where one can complain against private hospitals. The consumer forum system has almost failed to deliver. The industry is making huge profits taking full advantage of the middle class’s appetite to buy comforts to live a life on the pattern of the rich and famous. There is no regulatory mechanism to cap the profit of industry by fixing a maximum limit for it. In the past few years, some of Indian industrialists in the manufacturing and service sectors have started figuring on the list of the world’s richest people obviously owing to the factor that they have made huge profits in the first phase of the capitalist economy in India. Some of the industrialists have made so much money in the new economy in India that they have been buying industries at a rapid pace in other parts of the world. The desire to own what is marketed as a “dream house” by developers has hit the middle class the most. Millions of people across the country took loans on floating interest rates from banks to buy houses or flats. Four years ago, the interest rate was only 7.5 or 8 per cent. Most of the people opted for the floating rate of interest as promoters of the marketing economy had told them that owing to the competing forces in such types of economy will lead to a further slashing of interest rates. However, what has happened is the opposite of what people were made to believe. The interest rate has been enhanced up to 13.5 per cent on home loans from 7.5 per cent. In other words, banks are now charging 13.5 per cent on the money which they had advanced at 7.5 or 8 per cent. The government did not put up any regulatory system to check an almost 100 per cent increase in the floating rate of interest or to fix the ceiling for enhancing the interest on money advanced to people on floating rates. It will be good for the country if the Prime Minister, who talks about infirmities in the international surveillance and regulatory mechanism, takes immediate steps to address the same in the new market economy in the country.
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Chatterati THE next step to “goondagardi” is leadership. It’s a tried and tested formula used by Bal Saheb Thackeray very successfully which is now being followed religiously by nephew Raj, who knows that the formula to become a successful and popular leader is through “gundagiri”. It’s astonishing! You play with lives for votes and political mileage. It’s sad when stalwarts like Lalu Prasad and Sharad Pawar cross words over Raj, the “goonda”! Some senior politicians are also playing vote-bank politics on this issue. Raj Thackeray, like his uncle, Bal Thackeray, is a cartoonist. Raj has managed to copy his uncle in his mannerism, style of speech and wit. Bal Thackeray was 40 years old when he led his campaign against south Indians in Bombay and launched the Shiv Sena. Raj targeted north Indians to launch his Maharashtra Nirman Sena at the same age. Both Senas have the same violent ways of protest. Raj is making his future secure once the old man is no more.
All for CM’s post One wonders what comes first: loyalty or hard work for the party. In Madhya Pradesh there was so much confusion during ticket distribution for the coming elections. All Chief Minister aspirants wanted to adjust their loyals. Otherwise, how will you become the CM “if” the party manages to win? Whoever gets more of his men as M.L.As will rush them to Delhi for a dharna and a signature campaigns to claim the CM’s post. We have one former CM who says he has taken exile for 10 years from active politics and only five years have gone by. So this term again the Congress will lose.
Diwali spirit Where is recession? Diwali celebrations are in full swing. The Sensex may be down but the stakes at the gambling tables aren’t. Bhangra parties are as colourful as they were. Auntyjis, dripping in diamonds and unclejis in their toosh shawls and zari kurtas, literally soaked in Patiala pegs, are as happy as ever in true “dill-waale-daler” style. Housewives finish their chores by 10 in the morning and settle down with bowls of dry fruits and healthy fruit juice to their “teen patti”. “Paneer tikkas” for lunch tandoori chicken and specially flown in mujra girls from Pakistan for the evenings. Whistles and money showered on every “nakhra, jhatka, matka and adda” of the noutch girls from across the border. Wow! Diplomacy at its best from the royal Punjabis to Delhi-ites. “Nach na jaane aangan tedha” may be true here. But so what? Dance auntyji dance, “nach lo ji”. It’s a good form of exercise for your belly.
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