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Lyngdoh’s
lament Flying
blues |
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Building
canal network
Crisis
hits FDI inflow
Portrait
of a proud Kinnauri
Gaddafi
up against angry masses Daughter
calls step-down demand ‘insult’
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Flying blues
The
pilots, airlines management and regulatory bodies like the Directorate General of Civil Aviation ( DGCA) are clearly at odds and each appears more determined than the other to find fault with others. The report that Indian Commercial Pilots’ Association has written to the Air India management stating that its members would fly only snag-free aircraft, appears suspiciously to be a part of the on-going war of nerves between the pilots and the Air India management. No pilot would fly, at least knowingly, an aircraft that is not absolutely safe. But that is precisely why the immediate provocation for sending the communication deserves to be taken seriously. According to the claims made by the pilots, even when they fly aircraft which have been through major maintenance and safety checks, they often develop mechanical trouble and pilots are forced to return to the airports from which they took off. The instances cited by the ICPA do raise disturbing questions about the quality of maintenance and safety checks that are in place. Even more serious are claims that pilots are penalised for raising these issues. The ICPA does seem to have a point when it says that it is unfair to single out pilots for flying under unsafe conditions or landing and taking off at airports which are deemed ‘unsafe’. Those who give permission to pilots for taking off and landing are equally, if not more, culpable for defying safety standards. While Indian civil aviation observes its centenary this year, safety mechanisms need to be sorted out once and for all. The sector has of late witnessed a healthy growth and in the next few years the Indian skies are going to get busier than ever. Under these circumstances, it is imperative that all stakeholders agree on safety mechanisms in place and work together to maintain norms. The issue unfortunately indicates a lack of trust and a breakdown of dialogue between the stakeholders. Or else pilots would not have threatened to stop flying to Kabul and Kathmandu on considerations of safety. While there could be more to the controversy than what meets the eyes, safety is an issue on which there should not be any compromise.
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Building canal network
There
is reportedly a Central move to amend the rules and help Punjab in upgrading and lining its canals. Central aid under the Accelerated Irrigation Benefits Programme is currently limited to states with less than 50 per cent irrigated area. Punjab’s 98 per cent area under agriculture is irrigated. The Central aid will be welcome in a state that is perpetually in a financial crisis of its own making. Pursuing the politics of freebies the Akali and Congress governments have not levied user-charges for canal water, which is given either free or is highly subsidised. Two years ago Chief Minister Parkash Singh Badal announced with fanfare a Rs 3,243 crore plan to repair canals, check water-logging and recharge groundwater. The plan, it seems, is still on paper as it is yet to make an impact. The successive governments’ neglect of canals has led to lower water supply through canals, wastage and floods. The water level in the rivers and canals passing through Punjab has receded over the years. This has forced farmers to dig up tubewells to cultivate paddy. The heavy dependence on groundwater has led to the lowering of the water table. As a result, farmers are forced to install expensive submersible pumps. This has raised their production costs and contributed to their indebtedness. Last year’s floods in Punjab exposed the state’s dilapidated canal system. Lack of repairs and encroachments on canal and river beds aggravated the flood situation. On the one hand, the groundwater table is sinking by 24-25 cms annually, and on the other, rainwater goes waste due to poor water management. Frequent breaches in canal embankments cause extensive damage to crops. The maintenance of the canal system and rejuvenation of water resources is a continuous process, which has suffered due to lack of political will and funds. Now that the Centre is willing to open its purse for Punjab, the state leadership should lobby for change of rules and early release of funds to replenish the depleting water resources.
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He who has a why to live can bear almost any how. — Friedrich Nietzsche
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Crisis hits FDI inflow INDIA is likely to receive less foreign direct investment (FDI) in the next one year considering the recent developments around the world. There has already been a drop in FDI by 48 per cent to $1.04 billion in January 2011 as compared to January 2010 when India received $2.04 billion. This year there will be competition for FDI from Japan which is striving to get back to normal. It is the third most important industrialised country in the world which means that there will be severe economic repercussions of the earthquake that struck Japan on March 11 on the rest of the world. Reconstruction will require a huge expenditure and can only be undertaken with the help of foreign assistance and investment. Japan may need alternative sources of power because of the problems with nuclear energy it is facing, and its increased demand for oil may lead to a further rise in international oil prices which have not stabilised as yet. Much will depend also on the emerging pattern of the Libyan crisis. India’s oil-import dependent economy may suffer further inflationary pressure due to a big hike in the international oil price, making India a less attractive FDI destination. Japan is also an important foreign investor for India and the investment flows are likely to slow down drastically. This will further aggravate the present scene where India’s important investors are having problems of their own like in some of the European Union countries. India, however, will need FDI as it brings technology as well as foreign exchange and the benefits are many more than foreign institutional investment (FII) flows that go into bonds and equity. FDI is much more stable and it is not subject to volatility. On the whole, India will have to give clear signals that it is going to open up FDI further. Many foreign investors have been waiting for news about the opening up of the multi-brand retail sector but a firm decision has not been taken about it because there are around 33 million small retailers in the country whose jobs may be at stake. Also, the opening up of the insurance sector allowing a higher percentage of foreign investment (from 26 per cent to 49 per cent) has been on hold for some time. These trends are likely to make many investors wary about India’s policy towards FDI in the future. To add to the existing negative perception of India as an FDI destination, a recent report by a UK-based firm Maplecroft, which has compiled a Global Risks atlas for 2011, has listed India as the 16th most riskiest country to invest in on account of security hazards. It is surprising that India has been clubbed with Niger, Bangladesh and Mali as far as investment risks are concerned. The report takes into account seven key global risks, including macroeconomic risk and threats around security, governance, resources security, climate change, social resilience and the presence of illicit (black) economies. Even though India has a high growth rate, other considerations like threats from militant extremists and Maoists are counted as important. Also, now it is well recognised that though there are pockets of immense prosperity in India, there is extreme poverty which is always considered a security risk. The report also says that India lacks social resilience and has poor human rights record. It points out that a large section of the population lacks basic services like education, health care and sanitation. It also highlights India’s less productive workforce and its greater susceptibility to pandemics and social unrest. The government ought to be worried about the perception of India as a high-risk country. In the recent Economic Survey the government has indeed acknowledged in Chapter 2 that bureaucratic delays are behind India slipping in the World Bank’s ranking of countries according to the government’s efficiency of doing business. The World Bank ranks India as 134th among all countries in terms of the government’s efficiency of conducting business. Only if there are major changes in the way the Central and state governments deal with foreign investors, it will bring about a big difference. Within the country, however, there is much difference between how state governments perform and some states are more efficient and have attracted greater amounts of FDI than others. If the laggard states performed better, then according to the Economic Survey, India’s rank could be 79th. Undoubtedly, if India is to sustain a high growth rate, important in the eradication of extreme poverty, there will have to be more foreign investment in infrastructure and manufacturing which would lead to an increase in jobs. But obviously foreign investors would like to come to India for their own profits and will choose areas like mining that give high and quick returns but are environmentally unsustainable. How to make investments in areas that are important for us more attractive to foreigners will be a challenge for the government. If India can overcome some of these well-acknowledged hurdles to FDI and with global investment flows back to normal in a few years’ time, the future looks bright for India. According to a recent survey by Ernst & Young, India will be an attractive FDI destination in the future. Indeed foreign investment projects have increased by 60 per cent from 2003 and the number of jobs created has gone up by 30 per cent. In their interview of 500 global business leaders about the potential of the Indian market, a large majority believed that as early as 2020, India will become a global leader in education, R&D, innovation and as a producer of high value-added goods and services. Also 70 per cent of the global businesses already present in India and which formed part of the survey indicated that they would expand their operations. This is because India will offer a huge market in the next 15 years and the middle class is set to treble in number during this period. India’s young demographic profile is also going to be an advantage. In terms of business activity, manufacturing can attract the most FDI projects and India is likely to emerge as a manufacturing export hub, especially in automotive. But to do so, recent trends in industrial production will have to be reversed. Manufacturing output, which accounts for 80 per cent of industrial production index, rose only by 3.5 per cent in February 2011, down from 16.1 per cent growth a year earlier. To ensure that manufacturing remains an attractive foreign investment destination, India will have to rev up its education system with special focus on higher education, health and skill training programme for India’s young
population.
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Portrait of a proud Kinnauri It
was our last long day of hard work and my friends and I were in celebratory mode. Except we were in Kinnaur, a couple of hours away from the Chinese border, surrounded by craggy, poker-faced mountains with few signs of habitation, and difficult to locate accommodation. After a couple of wrong leads we decided to follow the twin headlights of an invisible vehicle winding its way up to somewhere, and were soon parked outside the large side gates of a forest guest house, the silhouette of which we could barely make out. The scene could well have been out of an old Bollywood horror film; made realistic by the arrival of a bent old man. Hooked nose, jutting chin, crooked legs and a pronounced hunch; a lantern swinging from one hand would have completed the picture. Muttering to himself about inconsiderate late arrivals he led our silent figures into the premises. Following which, we were imperiously informed that dinner will be in the dining room and celebrations long forgotten, we wolfed down our food and hit the sack. Morning changed everything. Birds, bright sunshine and insistent knocking welcomed us to wakefulness. The door opened to reveal a pink-sweater-ed, woolen-capped, dirty pajama-ed, single-toothed vision of indeterminate age holding out our bed-tea. Meet Gila Ram, our most endearing experience from that trip. Cleaner, housekeeper, gardener, watchman, cook all rolled into one constantly chuckling avuncular being. He had us quite alarmed initially at his threats of imposition of fines for reasons sans reason, but we soon learnt how hollow they were. He continued regardless. He threatened to fine us when we decided to wash out our clothes that morning. Then he threatened to fine us for draining all the water in the tank, the only time we concurred he had a sound reason. He followed that up with one for burdening his clothesline. He threatened to fine us for not being back for his lunch. He threatened us on our return that evening for having had to remove, fold and put away our clothes (while leaving our delicates untouched to our amusement and growing wonder at this adorable creature fussing over us). On our departure, he refused to charge us for a large chunk of his hospitality. Instead, despite protestations, he foisted us with more almonds, prunes and a large bottle of Nesang brandy as we made to leave. Our efforts to leave a generous tip were met with proud offence. Nobody pays me for visiting my home, he muttered, walking away; with a final threat thrown over his shoulder to fine us if we didn’t return soon. They definitely broke the mould after that one. Long live Gila
Ram.
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Gaddafi up against angry masses
The
attacks started early in the morning as the residents of this besieged and battered city were starting their hours of queuing for bread. The missiles came in two salvos, around 80 of them crashing down. At the end, amid the smoke and flames, lay the dead and the dying. Even by the grim standards of Misrata, the most violent battleground of this savage civil war, what happened yesterday was a cause of deep shock. The targets for Muammar Gaddafi’s forces appeared to be of no military or strategic value: houses, a school, an empty cement plant, the street outside the baker’s shop. At least 16 people died, and 29 were injured, almost all of them civilians — including a mother and her two young daughters. Hillary Clinton, the US Secretary of State, has highlighted Misrata as the prime example of the atrocities Colonel Gaddafi has inflicted on his own people. But yesterday, there were repeated questions on the streets about the absence of Nato warplanes. The funerals took place late in the afternoon, at a children’s playground which has become a makeshift cemetery. It was one of the few pieces of open ground in the area of Ghasr Ahmed, where most of the deaths occurred. The official graveyard for the district has been too dangerous in the last fortnight because of sniper fire. The service became an occasion for outpourings of anger and grief. Mourners wept, as others shouted “Misrata will be your graveyard, O Gaddafi” and “Misrata will stay true, Misrata will stay strong”. Before the outbreak of the conflict, Misrata had a population of 480,000. Many of those residents have since fled and those who stayed behind have become familiar with the sorrow brought by the fighting. In the grounds of the hospital, seven bodies were laid out in a tent, three of them charred and the others with extensive shrapnel wounds. “We have similar tissue damage in the ones who survived,” Dr Abdul-Baset Hussein said. “It is hard dealing with this kind of thing week after week, but it was particularly hard today seeing such terrible damage. The ones caught in the bread line, in the open, really did not have much of a chance. The few who were brought in from there could not be kept alive.” An Egyptian woman and her two daughters were at the bread shop when the explosions began. The mother dragged her girls to a garage to seek protection. But the next missile hit the entrance, starting a fire from which they could not escape. Staying indoors did not save Mohammed Ben Arafa. The 85-year-old retired businessman was sitting in his home, having a cup of tea before going for prayers when the building’s front section was obliterated. Rescue workers were hosing blood and remains from the walls as Mr Ben Arafa’s two sons sat on the pavement crying. “We shall miss him so much,” the younger boy, Amer, said. “We do not even have a body to bury, we could not recognise what was left of our father. This is not the memory we wanted of him.” Some of the injured had been taken to a clinic run by the Red Crescent organisation. Two patients, aged 17 and 23, lay in adjoining beds suffering from serious stomach and chest wounds. Dr Ibrahim Mahmoudi, who had returned from working at a Toronto hospital to help in the crisis, shook his head. “If this was Canada I would say these two would have a pretty good chance of survival,” he said. “But we are really struggling with facilities here. Look, we have just got one ventilator in the whole ward. We are not really equipped to deal with things like infection. I am afraid we cannot give them more than 35 per cent chance of survival.” Among the crowd drifting away from the funeral were those who wondered how much longer Misrata would continue to bury its dead from this conflict. “We all genuinely thought that once Nato stepped in, we shall stop having these daily attacks,” Tahir Ramadan said. “Are we supposed to believe that Nato could not see what was going on? Why didn’t they do something?” His companion, Yusuf Farousi, a retired university teacher, stopped him. “Have you forgotten that Gaddafi came to school here in Misrata?” Mr Farousi asked. “We have played a part in creating him. Let us not blame foreigners for the misfortunes of our country. We Libyans have become good at inflicting tragedies on our own country.” Libyan state television yesterday broadcast footage of Muammar Gaddafi racing around Tripoli in an open-top vehicle, pictured above, and said he went on the outing while the capital was being bombed by Nato. Wearing a green safari hat, dark glasses and a black jacket, Colonel Gaddafi pumped his fists in the air and waved as pedestrians chased his convoy of SUVs through the streets. A screen caption said the trip had taken place earlier yesterday, while Tripoli was under an air attack by Nato forces. Nato carried out air strikes on the city, the state-run Al-Libya TV reported, while reporters said they heard four blasts and saw plumes of smoke rising from the south-east of the
city. — The Independent
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Daughter calls step-down demand ‘insult’
Muammar Gaddafi’s daughter said the West’s demand that her father leave power was an “insult” to all Libyans in a defiant appearance before a crowd of his chanting supporters in Tripoli early on Friday. “In 1911 Italy killed my grandfather in an air strike and now they are trying to kill my father. God damn their hands,” Aisha Gaddafi told the flag-waving crowd who had gathered at her father’s Bab Al-Aziziyah compound in the capital. The event, broadcast live on state television, marked the 25th anniversary of American strikes on the huge complex, which includes
military barracks. Then U.S. President Ronald Reagan said the 1986 attack was in retaliation for what he called Libyan complicity in the bombing of a Berlin night club. Gaddafi, wearing a green headscarf and black leather jacket, said she had been five years old at the time. “They rained down on us their missiles and bombs, they tried to kill me and they killed dozens of children in Libya,” she said, her speech several times interrupted by the cheering crowd. “Now a quarter of a century later the same missiles and bombs are raining down on the heads of my and your children.” Hours earlier, state television said NATO warplanes launched air strikes on Tripoli on Thursday. At a meeting in Doha on Wednesday, a group of Western powers and Middle Eastern states called for the first time for Gaddafi to step aside. “Talk about Gaddafi stepping down is an insult to all Libyans because Gaddafi is not in Libya, but in the hearts of all Libyans,” his daughter said. Addressing the Western powers who are carrying out air strikes under a U.N. resolution to protect civilians against her father’s forces, she said: “Who are the civilians you are protecting? Are they the people who have automatic weapons and hand grenades? Are they the innocent civilians you are trying to protect? Leave our skies, take away your aircraft and missiles.” A rebel supporter in the western city of Misrata, which is besieged by government troops and scene of daily clashes, dismissed her speech as a sign of despair. “Gaddafi ruled Libya with an iron fist for 41 years and killed anyone who tried to oppose him,” Marwan, 22, said. “What she said is a sign of the despair of the Gaddafi family and his inner circle. They know their days are numbered,” he told Reuters by phone from the coastal city.
— Reuters
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