Daily Excelsior... Editorial

EDITORIAL

By K.R. Sudhaman
The 9th Plan Mid-term appraisal is an eye-opener as it minces no words in emphasising that everything is not hanky-dory with the ecomomy, which has not succeeded in achieving the planned growth in the first three years of the ....more

Corruption is also a
great saviour from
corrupt rulers

By Kedar Nath Pandey
The conviction of former Prime Minister PV Narasimha Rao in the Jharkhand Mukti Morcha (JMM) bribery case has been widely acclaimed as a great achievement of Indian governance. But this appears.....more

Under the shadow
of suspicion

By Harjeet Singh
Bibi Jagir Kaur got on a platter what Sikh women before her could only dream of – a place on the highest and most prestigious chair of the Sikh mini-parliament, the Shiromani Gurdwara.....more

EDITORIAL

BROAD BASED

Hurriyat is all set to broaden its base to make it truly representative body of Jammu & Kashmir. As things stand Hurriyat amalgam has not been able to put its act together mostly due to its total pro-Pak leanings and dependence for everything from across the border. Within Kashmir and in public esteem it has been invariably termed as 'Hartali Party'. Most of its leaders are alleged recipients of foreign funds given for various rehabilitation and reconstructions activities but funnelled into personal coffers. There is a file on almost everyone of them but imbecility or perhaps political expediency of the State and Central Government has come in the way of follow-up action for violation of Forex Act and/or possession of disproportionate assets. Further, as on date this amalgam has nothing to its credit which can rightly be claimed as pro-Kashmiri or pro-people. It thus follows when people show their anger and wrath against Pakistan, Hurriyat is bound to get its share, more so because it is an amalgam of local outfits. There also have been internecine squabbles that have lowered it in public esteem. Yet one fact stands out clearly and that is whenever any foreign delegation of MPs or diplomatic missions visit Kashmir, it is the Hurriyat whom they interact with and give their piece of advice as conceived by them. It is also to be recorded that Hurriyat influence is confined to some areas in Valley and it is conspicuous by its absence both in Jammu and Ladakh regions. To that extent its credibility as the only representative body of Jammu & Kashmir loses sheen.

It is precisely in the context of above shortcomings that Hurriyat now conceives broadbasing its activities both in terms of inclusion of other reckonable outfits as also taking the unrepresented regions within its fold. The reasons for this change of heart are not difficult to conjecture. There have been some news making the rounds that Hizbul Mujahideen are now inclined to form a political outfit taking within its fold some others interested in return of peace to the Valley of tears. To be precise it is the follow up of dialogue initiated with Central Government by the local Hizbul Commander Mr Dar. Ever since efforts have been on to have some sort of breakthrough. Many people have been on the job. There are also indications that the party thus formed would contest next assembly elections. Although all this is in formative stage and clear picture is yet to emerge, it is certain that some sort of transformation is going on to dilute the stranglehold of Pak influence and support to some local militant outfits. This is very largely attributed to divides and other things happening to many Pan-Islamic militant outfits based in Pakistan/PoK. Second aspect relates to the type of combination that could possibly emerge offering viable alternative not only politically but also in terms of seeking lasting solution to the Kashmir imbroglio. In this context it will not be out of place to mention visit of Mirwaiz Omar Farooq to Iran. Latter's tentative advice to Hurriyat in particular is not to trust Pakistan blindly and it should be seen as working independent of Pakistan. Such advice from Islamic country like Iran is not without logic. In fact, Iran itself does not trust Pakistan due to many Shiites killed in that country including Iranian diplomat. Their differences are largely attributed to Iran being Shiite while Pakistan staunchly Sunni. Besides, there are strategic reasons like spread of Taliban culture from neighbouring Afghanistan in as much as this culture has been promoted and sustained by Pakistan. Iran has also changed its policy on Kashmir and do not support cross border terrorism let loose by Pakistan in Jammu & Kashmir. Iran is also closer to Russia vis-a-vis various perceptions in the Gulf region which are different from that of Pakistan. Iran incidentally has been a financial donor for welfare schemes in Kashmir. Such funds stand channelised through Hurriyat. So it wields considerable influence on Hurriyat. Its advice is a mature one in as much as working independent of Pakistan can make it really representative in character.

Now that Hizb too is somewhat inclined to open up politically, Hurriyat naturally feels concerned because it can ill afford cutting into its base by another political outfit which is more acceptable to people than Hurriyat. Another reason that has prompted Hurriyat to broadbase itself is the advice from the foreign important visitors from European Union and some ambassadors. The advice is invariably on the line to mark its presence politically. In fact this advice is very old but Hurriyat instead of participating in elections have been giving calls for its boycot. In the process they have not been able to undermine ruling clan's hold not garner favour with Pakistan. It has been a lose-lose game either way to what can be termed as remaining in wilderness. In the ultimate analysis to be acceptable to the people, it has to involve all outfits which matter. Instead of Hizb floating parallel amalgam, it is politically expedient for Hurriyat to invite Hizb and other outfits by giving them their rightful place in the amalgam. To get something one has to give something. Together they form a formidable group. With mutual distrust and recrimations they are neither here nor there.

In the light of the above and other invisible factors that have been working overtime if Hurriyat really gets broadbased, the return of peace to J&K could be hastened. It will be watched with interest asto which way the wind blows in the coming days.

IAF LOSSES

Loss of as many as 84 aircrafts in accidents during the last five years is something that cannot be wished away lightly. The fact that out of these MiG-21s account for 60 while all other types including Choppers only 24 is another factor that needs closer look. It may be mentioned that out of all the aircrafts in IAF kitty, MiG-21s have come in for sharp focus and criticism because of very abnormal accident rates. Some have gone to the extent of terming it as 'Flying Coffins'. The total loss to the nation is over Rs 800 crore while 34 young pilots have died unceremoniously. Yet powers that be including senior IAF hierarchy are inclined to defend MiG-21s and persist in its usage for another decade. One really does not know whether they speak the language as briefed by political bosses or it is their own perception of the ageing MiG-21s. In retrospect one may recall that MiG-21s were inducted into IAF as front line fighters way back in 1961. This means they have already rendered service of 40 years. By any yardstick no country would promise such longer life for any flying machine, not even the ground machine. Compared to contemporary aircrafts, weapons systems and avionics of the MiG-21 has long outlived its utility. It thus follows that its upgradation was sought as a remedy. Even that upgradation exercise lags behind by 2 to 3 years and first of the upgraded MiG-21 could be expected not earlier than December next year. Again, many of the MiG- 21s stand canabalised to service the other ones. This is due to non-supply or delayed supply of spares from Russia. By conservative estimates 50% of the MiG-21s are grounded. Others are getting finished in accidents in all sectors. Delay in acquisition of Advanced Jet Trainers has also contributed to excessive accidents. Even though Hawks AJT are now slated to be acquired from Great Britain, their induction is going to take another two years or so. One really wonders if our IAF is indeed fighting fit because its large fleet of MiG-21s is as good as obsolete. Forty years span is too much for any fighting air machine. It just does not happen in any Air Force the world over.

Mid-Term Plan Review : An Eye-Opener

By K.R. Sudhaman

The 9th Plan Mid-term appraisal is an eye-opener as it minces no words in emphasising that everything is not hanky-dory with the ecomomy, which has not succeeded in achieving the planned growth in the first three years of the five-year plan (1997-2002). GDP growth during the first three years of the plan (1997-2000) is estimated to be 6.2 per cent per annum on an average as against a target of 6.5 per cent because of significant shortages in growth performance in Agriculture, Mining and Quarrying and Manufacturing sectors.

The Appraisal also points out that domestic savings and investment have fallen short of target by over five per cent. The entire shortfalls are in the public sector, where public saving has recorded a shortfall of 70 per cent and public investment a shortfall of 23 per cent. Besides investment in agriculture and allied services, mining and financial services have fallen short of the target by over 20 per cent.

Going by all these statistics, in the final two years of the plan, both public investment and public saving has to recover strongly if plan targeted were to be attained, the voluminous documents says adding targetted 6.5 per cent annual growth could be achieved only if the economy grew by 7.1 per cent in the next two years. Also it is imperative to reverse the decline in Centre's plan outlay-GDP ratio. The Mid-term appraisal which was approved by the Full Planning Commission headed by Prime Minister Atal Bihari Vajapyee estimated that to achieve this high growth Agriculture whose growth has declined sharply last year, will have to grow at 5.7 per cent in the next two years, manufacturing, 10.25 per cent, trade and transport 7.85 per cent and communications by 8.60 per cent.

The other worrisome area identified is the deterioration ofthe fiscal position, which is primarily due to serious slippages in the tax revenues, particularly at the centre. The Tax-GDP ratio of the centre was expected to be 10.4 per cent of GDP in 1999-2000, but the realised ratio is only about 8.7 per cent. Despite an expected revival in the Tax-GDP ratio, it is unlikely that the central budgetary support to the Plan could be maintained at the target level. It is estimated that only 87 per cent of the Plan target may actually be attained by the end of the plan period.

This compares unfavourably with the 93 per cent realisation during the Eight Five-year plan. Total public investment as a result, would be about 81 per cent of plan target. During the 8th plan the realisation in public investment was 85.4 per cent of the target.

As though these statistics were not enough to paint a gloomy picture about the economy, the Mid-term review said there has been a shortfall of 8.6 per cent in ther Gross Budgetary Support (GBS) of Rs 2,05,290 crore provided by the centre for the plan. Only a little below 50 per cent of the projected budgetary resources to be provided by the Centre for its own plan could be made available during the first three years of the Ninth Plan. The Internal Extra Budgetary Resources (IEBR) of Rs 133,403 crore raised by the central Public Sector Enterprises (CPSEs) were also lower by 18 per cent as compared to plan projections during the first three years of Ninth plan. Therefore, to Impart momentum to the economy, the Gross Budgetary Support annual plan for 2001-02 should make up for the shortfall so far and this requires at least 40 per cent increase over the current years budgeted GBS.

Due to Serious slippages in public investment in physical and social infrastructure, the pipeline investment for the 10th plan will be low, it warns emphasising this may weaken the possibility of significant acceleration in the growth rate during the plan period.

Nothwithstanding these critical observations about the economy, Prime Minister Atal Bihari Vajpayee, who is the Chairman directed the Planning Commission to formulate 10th plan to achieve an average nine per cent growth with a view to eliminating poverty in 10 years. As mid-term appraisal serves as the basis for the exercise to formulate the 10th plan, Deputy Chairman K.C. Pant was right in saying "we must link Plan assistance more and more to performance and accountability both at the Centre and States. In the light of Prime Minister's observation to step up growth to move on high trajectory, it is imperative that hard and difficult decisions are in store in the coming years to put the economy back on the rail.

The Planning Commission was apparently aiming at about 8 per cent growth with an attempt at equitable distribution across the States for the 10th plan. It has planned to double the growth in non-performing States of Uttar Pardesh, Bihar and Orissa through massive improvement in level, efficiency and climate of investment. The slow down in Agriculture growth has to be reversed through significant shift in policies-- increase investment ratio from 24 per cent at present to about 30 per cent per annum, target foreign investment of five billion dollars per year at the start of the plan rising to 10 billion dollars by 2006. This requires considerable fiscal consolidation and an investor friendly climate.

An eight per cent growth itself required tremendous effort and if this had to be pushed to nine per cent as directed by the Prime Minsiter one could imagine how much more the resources had to be stretched to achieve it. What is important for all these sunstantial improvement in fiscal performance and the main task ahead on this front is that both the Centre and States would have to take strong action in five major areas. Raise combined Tax-GDP ratio by at least three percentage points to 12.5 per cent by terminal year of 10th plan which would be one per cent higher than what was achieved in the 7th Plan.

Secondly, the Government would have to be downsized through zero-based budgeting of both Plan and Non-Plan expenditure. Here it is pertinent to note that some of the schemes, which have outlived its utility are still being carried forward from fifth plan onwards. So it is imperative that Budget provisions are optimised through re-prioritisation and convergence of schemes and programmes.

Thirdly, user charges have to be increased particularly in Power, Irrigation, Urban Water Supply, Education, Health and Government Housing. The performance of State Electricity Boards and State Road Transport Corporations among State level public enterprises has been quite dismal.

Fourthly there has to be a major effort to privatise Public Sector Undertakings and speeding up of the Big-ticket disinvestment programme. Lastly, ever expanding subsidies will have to be drastically pruned to limit to only targeted groups. Noting that the social indicators of the economy too were equally bad, the Mid-term appraisal called for restructuring of poverty alleviation programmes. IRDP should become a micro-finance programme to be run by banks with no subsidy on the lines of Rashtriya Mahila Kosh. JRY funds to gram Sabha only when the people contribute 25 per cent EAS should be replaced by food for work programme only in areas of extreme distress. Jobs should be created elsewhere through productive works, like rural roads, watershed development, rejuvenation of tanks, afforestation and irrigation. There should also be a focus on strengthening the economy of the marginal and small farmers, forest gathers, artisans and unskilled workers.

On institutional reform it suggested initiation of core plans for Centre and States besides linking allocation of some incremental increase in budgetary support to performance indicators. It emphasised the need to weed out, converge and revamp overlaping development programmes and focus on exploiting inter-sectoral synergies. It also stressed on strengthening the monitoring mechanism for both Centre and State sector schemes in collaboration with concerned agencies.

The mid-term appraisal has also recommended removal of all controls like movements, forward trading, stocks, exports and processing on agro-economy through Central act besides removal of wheat and rice from Essential Commodities Act. It wanted that labour laws are reviewed to permit hiring of contract labout with a view to improve labour productivity. It underlined the need to pursue civil administration and judicial reforms focusing on issues like greater transparency, right to information, strict performance norms and accountability.

Suggesting some policy changes, the review said large investment was needed in infrastructure. Estimated capacity addition in power for the 10th plan should be around 50,000 mw and this required Rs. 350,000 crore at today's prices. With stagnant domestics crude oil production, oil imports might be 120-130 million tonnes in 2006-07. At today's prices it amounts to 35 to 40 billion dollars. This would have implications on the country's balance of payment situation. Hence one could not afford make the plan a residual item of public expenditure, it observed.

Regarding Railways, it said there was a necessity to rationalise tariff structure over five years, set up independent Rail Tariff Authority besides corporatising production units. Cess on Petrol and diesel should be made ad-valorem to step up road development. Private sector should be encouraged for improving road transport system. On Ports, corporation of major ports should be expedited.

Summing up the difficult economic scenario and the task ahead, the mid-term appraisal said globalisation made it imperative that Industry and Agriculture became internationally competitive and for this second generation reforms were necessary in Industry, Agriculture, Infrastructure, Financial Sector and Labour Market. Special focus on employment generation should be given for faster poverty reduction. More resources should be provided for social sectors, infrastructure and social security besides carrying out systems reforms. It said unnecessary procedural control and regulations, which stifle entrepreneurial energy, breed corruption and affects common man should be eliminated.
PTI Feature

Corruption is also a great saviour from corrupt rulers

By Kedar Nath Pandey

The conviction of former Prime Minister PV Narasimha Rao in the Jharkhand Mukti Morcha (JMM) bribery case has been widely acclaimed as a great achievement of Indian governance. But this appears to be a case of false consensus. The touchstone for evaluating a politician should be how far he has established social good. The means he has used to that end are less important. Often untruth and corruption are necessary and desirable. Our tradition does not accept the need for purity of means, which Gandhiji appears to have advocated. It is time to give up these pseudo-ideals and get on with the task of establishing social good.

A classical example asked in our scriptures is like this: If a butcher came looking for a hapless cow which has escaped, would one tell the truth about its whereabouts? In such situations, one has to decide between two competing principles.

Truth no longer remains the final value. One may, indeed should, give up truth to save the cow.

Or consider Rama’s killing of Bali without giving him a chance to plead his case. Rama also gave shelter to Vibhisana who deserted his own brother as well as his motherland, Rama expelled Sita for no fault of hers. Lord Krishna’s guidance to the Pandavas through the Mahabharata offers more insight. On more than one occasion he relies on marginal untruth to see through the victory of Dharma. Bhishma, Drona, Karna and Duryodhana were all defeated and killed using suspect means.

Why then is Harish Chandra venerated? Had he not refused to allow his wife to cremate his own son without paying the charges for the cremation ground? A close reading of his story will indicate that Harish Chandra is venerated not because he managed to secure any social good but because he managed to attain the final truth of control over one’s passions. He is venerated for his individual attainment not for governance.

Mahatma Gandhi, likewise, proclaimed the final truth to us. At that level the distinction between ends and means certainly disappears. At the more mundane level he too recognised the need for compromises. He says, for example, that while non-violence is the ideal, he would prefer violence to cowardice. There is then a progression form powerdis, non-violence. Violence is acceptable for those who cannot attain the final truth. Or consider his advocacy of killing to keeping a hapless goat in pain. The messiah of non-violence preached violence to secure good of the goat.

The task then is not to gloat over Mr. Narsimha Rao’s conviction. The question to be asked is whether he acted in the interests of loka kalyana or not. And here, precious little has been alleged against him.

The task of the politician is to rule the country to secure public good. He necessarily has to make compromises. Let us consider a different scenario. The country was under external threat. If a government were to fall, the enemy could have used the weakness to attack us. In such a situation would it not have been appropriate to buy an MP and save the country rather than practice honesty and lose the country?

Take a more immediate example. Would it not be better to "buy" Ms Mamata Banerjee with a few crore rupees instead of rolling back the price hike in petroleum products?

If the politician has to make alliances in order to secure social good then, pray, what else has Mr. Narasimha Rao done? Money is part of the game of building alliances. Previously, our kings paid tributes to the emperors in order to secure the good of their subjects. Was that not "corruption"? The linkage between foreign aid and military objectives of the powers-that-be has been much written about. It that not corruption?

The root of the problem lies in the distinction we have created between the king and the state. Previously, the king could bribe the vassals or do whatever he thought to be good. But if he failed to secure the willing support of his people, he paid with his life.

The Indian solution was to make the king pay the price for his misgovernance with his life. We have removed that punishment upon the rulers but continued to give them the privileges and authority. The result has been that previously the kings indulged in luxury at the expense of the state but delivered good governance. Now they can live their lives of luxury but they do not have to pay for bad governance. Rather they can enjoy the fruits of bad governance.

The idea that the judiciary or the Press will render these "Kings" accountable does not work either. An official appointed by the ruler – whether it be the CJI, CVC, CAG or CEC — can hardly sit in judgement upon his benefactor. Let us not forget that Gen. Pervez Musharraf was able to shunt out the reluctant judges of his supreme court in a jiffy. Such accountability will not do.

The real accountability of the Prime Minister is to the people. If he can deliver good governance, then all is well. The ends justify the means as far as the Prime Minister is concerned.

This is not to justify all corruption. There is a difference between corruption by the Prime Minister for securing social good, and that by the Government officers for personal gain. The Prime Minister is accountable to the people. The Government employees are accountable to the Prime Minister. The Prime Minister may legitimately demand honesty from the Government employees. But the people want social good.

Corruption is also a great saviour from corrupt rulers. In the famous play, Ghasiram Kotwal a poor, innocent fellow is tortured by the kotwal till the time that he, having no other recourse, admits to the theft. His hands are thereupon cut off by the kotwal’s police. The problem is that Ghasiram’s policemen are honest.

Or consider Mr. Schindler. This compassionate Nazi bribed his way through the German army to smuggle a train full of Jews to his factory and saved his life.

The plight of our wealth producers is no different. Think of a farmer who want an electricity pole to be repaired so that he can draw water to save his crop. The honest method is to represent to the junior engineer, who will send an indent for an insulator to the stores department and so that story will go on. The crop, of course, won’t last. It is beneficial for the farmer and the economy in general to have a corrupt administration if the government is tyrannical.

A despatch in The Washington Post a couple of years ago reported some experts voicing the view that corruption may actually improve economic performance. "After all, paying off a public servant can help cut bureaucratic red tape," they said. They pointed out that some of the notoriously corrupt countries rank among the best performers economically.

Let us recognise then that truth is not the final touchstone of good governance. We should debate whether the bribe was paid in social good or social bad. Then alone must we sit in judgement over Mr. Narasimha Rao.
INAV