O P I N I O N S

THE TRIBUNE INTERVIEW

by Raj Chengappa, Editor-in-Chief
‘Those states that oppose FDI in retail do not have a veto power over others’
— Anand Sharma , Union Commerce and Industry Minister
When the Union Cabinet announced on November 24, 2011 that it was permitting Foreign Direct Investment (FDI) of up to 51 per cent in multi-brand retail and 100 per cent in single retail, it was to signal that it was putting the economic reform agenda back on track. But with Opposition parties bringing Parliament to a standstill over the announcement and the UPA government's key allies like Mamata Banerjee, West Bengal Chief Minister, opposing it, there is likelihood of the policy being derailed. 

OPED

Lessons Delhi can learn from usA
The situation in India today closely resembles the situation in the United States during the early twentieth century. Rampant corruption and an inefficient and collusive bureaucracy were finally reined in by popular pressure
Rakshit Pandey
Globally, outrage and the ensuing chaos, as witnessed in India in recent months, have often been the harbinger of order for many countries. One such country that has been there and done that is the US and it has important lessons for us. Recent events notwithstanding, the US has, for the greater part of this century epitomised success- a country where the government delivers and true talent, innovation and entrepreneurship usually get rewarded.

PROFILE
The institution builder
by Harihar Swarup
A large section of  women  has been  marginalised  because they are dalits, minorities, poor or illiterate. They want both voice and visibility. They want to move from the margin to the mainstream. That is what prompted me to take the initiative to form  SEWA ( Self-employed Women’s Association), ” says Ela Bhatt, this year’s recipient of the Indira Gandhi Prize for Peace, Disarmament and Development.

On the record
The turban of the Sikhs was not an issue in the two World Wars
by Ashok Tuteja
Staff Sergeant Baltej Singh Dhillon made history when he became the first turbaned Sikh to be admitted to the Royal Canadian Mounted Police (RCMP) two decades ago. However, it was not all that easy for Dhillon to gain entry into the force. In 1988, he applied to the RCMP, stirring Canada into an unprecedented controversy regarding the allowance of a turban and his right to practice his faith against what was perceived by many the symbol of Canada—the Stetson worn by the mountie or the mounted policemen.

OPED

Lessons Delhi can learn from usA
The situation in India today closely resembles the situation in the United States during the early twentieth century. Rampant corruption and an inefficient and collusive bureaucracy were finally reined in by popular pressure
Rakshit Pandey

New York after the crash on Wall Street in 1929

Globally, outrage and the ensuing chaos, as witnessed in India in recent months, have often been the harbinger of order for many countries. One such country that has been there and done that is the US and it has important lessons for us. Recent events notwithstanding, the US has, for the greater part of this century epitomised success- a country where the government delivers and true talent, innovation and entrepreneurship usually get rewarded.

Striking parallels

And yet it wasn’t always so. The crucible of such efficiency lay in circumstances, in the early 1900’s, which were remarkably similar to those that the Indian polity finds itself in now. Widespread corruption, lackadaisical governance and politician-businessmen nexus was commonplace.

Just as in India, there were allegations that the government often rewarded business houses with unfair advantages and contracts. There were business tycoons who, it was alleged, routinely bought seats in the House of Representatives. They manipulated legislatively determined pricing of critical national commodities (such as Gold and rail freight- the historical equivalent of telecom spectrum) in return for favors for the President’s family members.

In fact, some of the best known American universities were sponsored by individuals who were tainted with allegations of political graft. Noted political scientist, Fred W Riggs, might as well have been speaking of India when he described this state as a ‘Prismatic’ society-where prices could be determined by the reciprocal power of the trading partners and not due to the more impersonal relationship between supply and demand. Also, political control could be grabbed through coercion, violence, money, or charismatic rule, but not always through consistent application of constitutional law. Just as the recent scandals have led investors to doubt the Indian growth story, the American crises of 1894 and 1907 led foreign investors to doubt if a corrupt US governance system would ever get its act together. American democracy took time to mature and at times seemed just as inept and chaotic as the Indian governance appears today.

The turn-around

Given the striking parallels in the initial conditions, it is natural to think of the key causes for the American turnaround and the possible path that India might adopt going forward.

In the late 19th century, the US banking system was dependant on political patronage to receive licenses - not unlike the licensing raj that existed in India. The Regency Democratic Party held monopoly over the licensing regimen and used it extensively to fill party coffers.

However, reform emerged with the opposing Whig party’s desire to restrict the Democrat’s monopoly over these rents of patronage. Their intention behind deregulating the banking sector was more to end their rival party’s monopoly on bribes than to act against corruption itself.

Similarly, it was a rogue splinter group of the Democratic Party, the Equal Rights Party, composed of traders and entrepreneurs, which rose against its leadership. They did so only when it became apparent to them that a heavily regulated banking sector threatened their own economic interests. Personal gain and political brinkmanship played a bigger role in prompting reform than any sanctimonious regulation ever could.

In India, we have already seen some of this happen with the opposition having to clean its own tainted stable to maintain pressure on the government. Also, new interest groups, such as those led by Anna Hazare and Baba Ramdev, have risen to take advantage of the ideological gap.

Popular angst

Ultimately, in a functioning democracy, popular angst usually creates enough political space for new political parties (and old parties with new found ideologies) to cash in on emerging public opinion. Reform doesn’t always need legendary leaders with far reaching vision, but invariably needs a critical mass of popular angst. And a hitherto stable equilibrium of mutually beneficial silence unravels into a game or a jostle for the newly emerging popular mandate- ultimately leading to sustained reform.

Secondly, it was the emergence of a truly independent judiciary and civil service that bucked the existing trend. Earlier in its history, the US had followed a system of political patronage for government jobs. Thousands of appointments were made purely as political favour to those who demonstrated loyalty to the ruling party. Even judicial appointments were heavily influenced by the choices that the ruling party made.

However, growing inefficiency and public disgust with corruption finally forced congressional action to create a separate civil service cadre. These were purely expeditious political decisions driven by short term factors. The decision makers never truly intended them to have the far reaching consequences that they did.

In India, we are already witnessing a resurgent judiciary, unafraid to test the government’s conviction in going after the corrupt. However, actions of the bureaucracy have so far remained muted. Indeed, historically we have seen it regress from being the steel framework supporting India’s democracy into a favor seeking extension of the political machinery. Provided these institutions can remain independent in thought and action, it is entirely conceivable that in India too, these institutions, along with the media, will raise the cost of corruption to a level where it outweighs the marginal benefits of being corrupt.

Crucially, in the US, neither of these reforms was borne out of an explicit vision or conviction to root out corruption. And yet these reforms emerged because the system, for all its ills, was one that allowed popular mandate to fully express itself. Subsequently, the invisible hand of selfish political survival guided the various players into reactions that inadvertently led to sustainable change and reform.

The current chaos engulfing Indian governance and policy making, seems utterly incapacitating. However, it would bear well to remember that it is part of a broader narrative, a journey that culminates in the emergence of hugely successful societies.

PROFILE
The institution builder
by Harihar Swarup

A large section of  women  has been  marginalised  because they are dalits, minorities, poor or illiterate. They want both voice and visibility. They want to move from the margin to the mainstream. That is what prompted me to take the initiative to form  SEWA ( Self-employed Women’s Association), ” says Ela Bhatt, this year’s recipient of the Indira Gandhi Prize for Peace, Disarmament and Development.

“Historically, culturally and traditionally—the way of earning one’s livelihood in our country has been through self-employment. The employer—employee relationship came into picture much later”, she points out, explaining her stress on self-employment.

Born in a privileged Brahmin family, Elaben ( Ela Behn or sister), as she is popularly called, chartered an unusual path for a woman of her time. She earned a law degree and chose the man she would marry. She began her career as a lawyer for the city’s main union for textile workers, the vast majority of them men, and broke away in 1981 to create a new kind of union for women. She is currently lives in Ahmedabad with her family, which includes her son, daughter-in-law and two grandsons. Her daughter is settled in the US.

SEWA first grabbed headlines in 1973. A woman, who carried cloth on her head between Ahmedabad’s wholesale market and the retail markets, complained to the union that in the oppressive heat of May, she was being forced to run back and forth between the wholesaler and the retailers with the headload. She was sent twice by the wholesaler to different retailers but both refused to accept the material. These women were also made to clean vessels and fetch water for the traders without any payment. Leading the agitated union members, Elaben opened a manhole and put the cloth into it. People gathered and traffic was blocked. Merchants were eventually forced to make a written agreement that workers would be paid adequately and treated better.

One of  the more spectacular achievements of  SEWA was to set up its own bank. The banks—big and small— had cumbersome procedures to sanction loans and rarely came to the rescue of unorganised labour when in distress. At Elaben’s initiative, SEWA set up its own bank. The Registrar of Cooperatives was initially afraid to put his seal of approval on the bank as shareholders were all illiterate women, engaged in the unorganised and the uncertain sector of the economy.

SEWA Bank was set up in 1974, accorded recognition  and collected  a working capital of more than Rs.12 crores. The bank soon recorded a repayment rate of 96 per cent. The bank has been totally self-reliant from the beginning since it was entirely based on the members’ deposits and share amount. Evidently, Elaben knew that the bank would be a success because these women were earning cash income daily and they were determined to come out of the clutches of the money lenders and traders.

On the record
The turban of the Sikhs was not an issue in the two World Wars
by Ashok Tuteja

Baltej Singh Dhillon

Staff Sergeant Baltej Singh Dhillon made history when he became the first turbaned Sikh to be admitted to the Royal Canadian Mounted Police (RCMP) two decades ago. However, it was not all that easy for Dhillon to gain entry into the force. In 1988, he applied to the RCMP, stirring Canada into an unprecedented controversy regarding the allowance of a turban and his right to practice his faith against what was perceived by many the symbol of Canada—the Stetson worn by the mountie or the mounted policemen.

He found himself fighting for his religious right to wear his turban and the opportunity to serve Canada, the country he chose to live in after migrating from Malaysia. Two years later, Dhillon came out victorious in his struggle and today proudly wears his turban while working in the RCMP. Over the years, Dhillon has worked to give back to his community. His efforts include volunteering at youth camps as a counsellor and lecturer. In India, as a guest of the Punjab Government, Dhillon spoke to The Tribune at the High Commission of Canada.

How does it feel to serve the RCMP?

I have been in service for 20 years now. I have been treated well…received various promotions. I have the respect of my colleagues and the people of Canada. It has been very rewarding.

Do you ever feel that you have been discriminated against in the force?

No, the RCMP strives on a daily basis to maintain a high level of awareness against racism or discrimination…any type of environment that will bring discomfort to anyone is strictly avoided. This job falls on every employee. I am also charged with managing a number of people. We ensure that we provide a harassment-free work place to everyone.

When did you migrate to Canada?

I was born and brought up in Malaysia. My family originally belongs to Pakhowal in Ludhiana District of Punjab. My father was a simple watchman. My mother raised six children. I migrated to Canada in 1983 for a better life. My father had passed away. My brother was settled there. Canada is a place which provides us freedom to practice our religion without persecution and we are treated equally as any other citizen. I have had the chance to travel to many countries. I can say without doubt that I am blessed and so is my family that we got to live in Canada.

Was it difficult for you to eke out a living in your early years in Canada?

Yes, nothing comes easy in Canada. You have to work hard and if you do that in Canada, if you apply your mind and body towards a particular goal, systems are there to ensure that you succeed.

Did you ever consider going back to Malaysia or settling in India?

No, I wish to continue coming to India only for a holiday.

I believe you were part of the panel probing the Air India Kanishka crash. How was the experience?

Yes, it was a very difficult investigation. So many innocent lives were lost in the name of revenge and freedom. That will be a black mark on the Sikh community in Canada and Canada itself. The Sikhs and Punjabis in Canada are very saddened by this. It does not comply with any of our teachings. To take any innocent life is a sin.

There is a raging controversy over the ban on Sikhs wearing turban in France. How do you look at it?

Sikhs have served in both World War I and World War II. They have been serving with their turban all over the world. I am a living example. It is the basic human right of any individual to practice the religion of his choice without persecution. So any country that says we will not allow Sikhs to wear the turban is hurting their sentiments. Sikhism was not born yesterday. We have a Sikh as the Prime Minister of India who is doing a reasonably good job.

What is the reason for your visit to India?

I was here at the invitation of the Punjab Government to attend some events in the state as a representative of Canada, including the inauguration of the Sikh heritage centre, ‘Virasat-e-Khalsa’ at Anandpur Sahib.

Did you meet Chief Minister Prakash Singh Badal?

I had a meeting with the Chief Minister. He welcomed me and was quite appreciative that I was able to attend these functions on behalf of the RCMP as a representative of the Sikh community in Canada.