Daily Excelsior... Editorial

EDITORIAL

Adult education- A
pressing necessity

By Dr. M.L.Wangoo

Background and importance: India is a developing country where we have the largest number of illiterates in the world. On the eve of independence in 1947, our literacy rate was 18.33 per cant and by 1991, the figures went to 52.21 per cent. By the end of 20th century there may .........more

Macedonia: In the
eye of the storm

By Sharad Dixit

The ethno-religious crisis in
Macedonia was reportedly re-
solved on the 26th of March 2001. Hopefully. Wishfully Temporarily. Or so the Western English media would have us believe. The hills to the.......more

Disinvestment :
Will it deliver ?

By Amar Krishna Paul

The Centre's move to divest
government's stake in pubic
sector units (PSUs) and its ''sell-out drive'' have formed the core of an animated debate among the experts and the laity alike..........more

EDITORIAL

IRAN & KASHMIR

Iran, Pakistan and Afghanistan are important Muslim countries. And since religion is, as history bears testimony to the fact, a unifying factor for Muslims, Pakistan and Afghanistan obviously had anticipated Tehran to embarrass 'saffron' man, Atal Behari Vajpayee, during his official visit to Iran. However, both Islamabad and Kabul had a different message altogether from Tehran on Kashmir in case of Pakistan's proxy war and on terrorism in case of Afghanistan's Taliban. Ayatollah Syed Ali Khomenei, the supreme leader of the Islamic Republic of Iran, who is most revered next only to the late Imam Khomenei, and other Iranian leaders, including the hugely popular Syed Mohammed Khatami, cannot be faulted for the choice of operations they employed during Vajpayee's parleys with them. Clearly, Vajpayee's 'Mission Iran' was a success. Some kind of commotion was reported in Pakistan and Afghanistan, after the announcement of two major events. First, the agreement between Iran and India to intensify mutual cooperation to aggressively tackle the growing menace of extremism and terrorism threatening peace and stability of the region. Second, the warm endorsement by Tehran of New Delhi's initiative for peace in Kashmir. That Vajpayee's persuasive manners charmed even a hard-liner like Iran's supreme leader, Khomenei, was borne out by his (Khomenei's) agreement with the Indian Premier's argument that terrorism and mindless killings in Kashmir cannot yield any peaceful settlement of the matter. And Vajpayee, obviously, had reasons to be satisfied after the Iranian leaders were convinced as he made no secret of Pakistan-Afghanistan nexus in Kashmir as an example of the shape of events to come in the name of Jihad. Will the tactical advantages of the cooperation between India and Iran in seeking to contain the rise and spread of Taliban's influence serve as a lasting strategic glue between the two countries? Significance has to be attached to the fact that both sides have referred to the need to contain Afghanistan's Taliban, whose brand of Islamic fundamentalism poses a challenge to the ethos of a civilisational Islamic country like Iran and secular India. Iran is for India-Pakistan friendship. At the same time, the complexities of the politics of the Organisation of Islamic Countries (OIC) will, it is generally felt, impinge on the positive role that Tehran can be expected to play in easing the India-Pakistan tensions. Another issue, which New Delhi and Tehran will have to be discussed in depth, relates to Iran's transfer of huge natural gas to India. The experts of the two countries have yet to reconcile Iran's perceived preference for supply route through Pakistan with New Delhi's reservations on that score. Be that as it may, the new strategic partnership between Tehran and New Delhi shows that India can build a relationship with the Islamic nations without reference to Pakistan. One can safely say at the given moment that the new partnership with Iran marks a breakthrough in the Vajpayee Government's diplomatic effort to win over the Islamic world. Clearly, the highlight of Vajpayee's visit was the signing of the Tehran Declaration whereby Tehran supported New Delhi's stand on cross-border terrorism and joined it in condemning States that aided and abetted terrorism.

RESTLESS IMAM

Atal Behari Vajpayee earned much appreciation for his discourse, in Iran, on the sacrifice of Hazrat Imam Hussain for humanity. But Vajpayee's statement was criticised by the Shahi Imam of Delhi's Jama Masjid, Syed Ahmed Bukhari. Why? And the answer to the question was made available by Bukhari: It did not behove Vajpayee to sing praises of Islam outside India when in his own country Islam was being attacked. Vajpayee had stated that Islam had a stellar place in the history of India. And Bukhari's comment : This is an attempt to fool the world. Indeed, Bukhari was referring to Vajpayee, L K Advani, Murli Manohar Joshi, Ms Uma Bharati and Kalyan Singh and other members of the Sangh Parivar when he said in his Friday sermon : ''These are the same people who stood and laughed when the Babri Masjid was being pulled down. They are responsible for the continuing oppression of the Muslims in India''. Bukhari, apparently, sought to inject a new element into the situation by throwing up loaded questions: Are Indian Muslims different from Indians? Is Islam in India different from the one in Iran? If not, then why is it that Vajpayee makes statements glorifying Islam outside India? If Bukhari's utterances were to be believed, he had made attempts to spread disaffection against Vajpayee during the latter's visit to Iran. And as he claimed to have been in ''constant'' telephonic contact with Iranian leadership during Vajpayee's visit to Iran, Bukhari did divulged that he had persuaded Iranian leaders to ask the Indian Premier: Where was he when Babri Masjid was demolished? Bukhari did not disclose the reaction of the Iranian leaders he contacted on telephone. Neither did anyone from his captive audience ask him any questions in this regard. And the audience was taken for a ride when Bukhari sought to project himself as a man with enormous influence over the Iranian leadership. And a section of his audience cheered him when he said: ''I have also asked them (Iranian leaders) to admonish Vajpayee on his Government's anti-Muslim policy''. Significantly, by the time the first report was received in Delhi about the establishment of the strategic partnership between India and Iran, Bukhari had seemingly become somewhat restless. Hence, all the more reason for him to assert: ''Vajpayee must not be under any illusion that he can seek the Islamic countries' support by denying the Muslims in his own country their fundamental rights''. That Bukhari had also become restless after L K Advani had told the Liberhan Commission that the Babri Masjid was a national heritage was borne out by his fulminations against the Sangh Parivar parties. And his warning : ''These enemies of Islam will not be spared''.

Adult education- A pressing necessity

By Dr. M.L.Wangoo

Background and importance: India is a developing country where we have the largest number of illiterates in the world. On the eve of independence in 1947, our literacy rate was 18.33 per cant and by 1991, the figures went to 52.21 per cent. By the end of 20th century there may have been some improvement in our literacy rate, but now that we have just landed in the 21st century - a century of unprecedented challenges - we have to make education a very powerful tool for all-round welfare of man and society in India to achieve better economic development, rich social transformation and fruitful involvement of the people for a better quality of life. But unfortunately our bulk of people fail to get formal education at any stage of their life and they enter the working life. The pure knowledge of 3 Rs (Reading, writing and Arithmatic) does not meet their fast-changing requirements. They are craving for a happy social and economic life, whose basic requirement is Adult Education. The former Union Minister of Education, Prof. V.K.R.V. Rao emphatically remarked long back that "Without Adult Education and adult literacy, it is not possible to have that range and speed of economic and social development, which we require. A programme of Adult Education...should therefore take a front place in any programme for economic and social development". So the National Policy on Education (1986) strongly advocated that "the whole nation must pledge itself to the eradication of illiteracy, particularly in the 15-35 age group... (and) must commit themselves to mass literacy programme of diverse nature".

Concept and purpose of A.E.: A.E. has different connotations in different countries. In India its concept has changed from time to time. Earlier it was simple taken as adult literacy, and Gandhi clearly remarked, "A.E. is education for life and not for the sake of literacy, but it includes everything". The National Literacy Mission established in 1988, pleaded for the improvement of the lot of women and rural illiterates by recasting targets and reformulating strategies. Gradually the changing concept of A.E. has come to mean "all instructions, formal or informal, imparted to adults" through Adult Literacy and Continuation Education. Today, "A.E. includes all activities with educational purpose, carried on by people, in the ordinary business of life, and who use only a part of their energy for intellectual development". Therefore, present A.E. programme in the country is three-fold, namely promoting literacy among more and more adults, developing their awareness to produce rational and logical minds, and ensuring them a better and more effective position in their life.

Methods employed in J&K:

Using selected approach: Mans big business and farm houses in public and private sectors, as a national requirement, provide functional literacy on priority basis to their employees within three years of their employment.

Applying mass approach: All educational institutions from primary to university level, and Govt. and non-Govt. departments and organs, are getting fruitfully involved to eradicate adult illiteracy on the principle of "Each one, teach one".

Involving individuals and organisations: Individuals with missionary zeal and organisations given to the cause of A.E., do very well on voluntary basis to educate the illiterate adults.

Pressing Radio and T.V. into service: Radio is still the most common medium of communication even for far-flung areas of the country to boost A.E. The T.V. the most appealing electronic media, spreads the message of A.E. to our villages through the T.V. national network.

Offering condensed courses: Condensed courses of short duration for illiterate women in villages through A.E. centres, serve to mobilies public opinion and help women organisations to extent the National Literacy Mission Programmes.

Attempt to make Adult Literacy a national movement: Attempts are on to rope in one and all at the state, central and local levels through persons who are social, political and religious leaders, high office-bearers and dignitaries to make their contribution towards the enrichment of Adult Literacy Programme so as to turn it into a national movement.

Updating organisation and administration of A.E. Centres: In many states of the country, a separate department called the A.E. Department. generally under the Directorate of school Education, is functioning by utilising the services of experts in the field. Even mobile library facilities, provision of modern Audio - visual aids and appointing educated persons is done to accelerate the work.

Critical estimate: Through the National Adult Education Programme has been implemented long back in J&K and other parts of the country, yet the programme faces certain following problems:-

Poverty of the masses: We have still 50 per cent population living below poverty line and they are more interested in earning their bread than joining an A.E. Centre. Most rural people run to towns and cities to earn their living than seeking A.E.

Conservatism among adults: All illiterate adults do not get motivated to join A.E. centres, as they think that the time for their education has gone.

Lack of trained teachers: Generally there is acute shortage of specially-trained teachers, both male and female to help absolute majority of illiterate adults. Shortage of female teachers is a serious problem and subsequently less females learns useful skills after gaining literacy.

Absence of suitable educational environment: Most adults fail to get attracted to join A.E. centre because of their poor situations and facilities.

Less involvement of public persons and others: It needs serious social commitment among public persons, and political will among Govt. agencies to ensure seriousness for this national cause of A.E. Need for new type of learning material: It has been observed that for the successful implementation of the A.E. programme in J&K and the country, there is need for research to evolve new types of learning material to suit the needs of illiterate adults and neo-literate adults. The material should be related to their previous experiences and future needs. Also, methodology of teaching needs improvement. More N.G.Os and other bodies have yet to come forward: Involvement of more and more non-governmental agencies to take to literacy instruction, is not very common for large scale participation.

Conclusion: Removal of illiteracy among our growing adults is a serious concern for all. The task of covering all illiterates by 1990, could not be rulfilled due to many constraints through the programme was linked effectively with many development programmes like IRDP, Nehru Yuwak Kendras, the NSS etc. Our focus of attention should be to train adults in functional skills relevant to their respective economic activities. The emphasis on literacy is very relevant as it is the basic tool to move ahead. But to ensure economic development, let us focus attention to improve the quality of life of our masses. Better returns are possible by improving the infrastructure and general atmosphere of the centres. Qualified and trained teachers and the provision of good financial support, will surely go to improve the quality of A.E. Women in their leisure time should fruitfully be drawn towards the centres to gradually realise their due place in the family and the society. The reading material for adult neo-illiterates, needs improvement.

Let us be hopeful that the impact of the early 21st century on J&K and India as a whole will be phenomenal to produce an educated and 'learning society' to march ahead in order to be a great nation in the large family great nations. There is a heart-warming situation coming up where I.T. (Information Technology) is going to revolutionise our educational system, particularly the A.E. programme in the country and most of our ills will he reduced to enjoy qualitative life by more and more adult neo-literates.

Macedonia: In the eye of the storm

By Sharad Dixit

The ethno-religious crisis in Macedonia was reportedly resolved on the 26th of March 2001. Hopefully. Wishfully Temporarily. Or so the Western English media would have us believe. The hills to the North-West of Tetovo in Northern Macedonia, bordering Kosovo were strongholds of ethnic Albanian rebels. Between two and three hundred guerrillas were said to be entrenched there, well armed, and including many battle hardened veterans of the Kosovo Liberation Army (KLA) It would be naive to believe that such a force was evicted in a single day by an under-equipped, moderately sized Macedonian Army which suffered minimal casualties.

The probability is (if the Albanians have indeed lift Macedonia and not simply dispersed), that they did so under their won volition, for tactical or strategic reasons. This leads to two possibilities. They exfiltrated into Kosovo despite the patrolling conducted by the UN peacekeeping force (K-For), or they did so with the latter's tacit consent. The method not withstanding, the result bodes ill for the near future.

Land-locked Macedonia is precariously positioned between four entities, each of which could effect its national aspirations. Greece to the South, has had significant differences with it over issues including territorial ones. Relations now are normalising. It has become the largest foreign investor in Macedonia and has supplied material support to counter the rebels. Bulgaria to the East has also supplies military aid and even offered to send its troops to protect the Kosovo border in the North. The Macedonians however are wary of the cultural and linguistic proximity that could impinge on their sovereignty. Serbia to the North has been excluded from the equation by the terms that concluded the fighting in Kosovo. They have now been permitted to operate in the five-kilometre buffer zone between the two countries to contain the ethnic Albanian guerrillas. The major threat however is perceived to be from Albania to the West, or its expatriates who seem to be aiming for a 'Greater Albania'.

It is the poorest country in Europe, with a population of under 3.5 million. More than 10% of these are emigrant workers while another 261,000 are domestically unemployed. Expatriates in the neighbouring countries of Greece, Macedonia, Serbia, Montenegro and Italy (across the Adriatic Sea) number some seven million - over twince the domestic figure. The crime rate is very high, corruption rampant, organised crime endemic and the public attitude xenophobic.

It is an active transit point for Southwest Asian opiates, hashish and cannabis, and for South American cocaine destined for Western Europe. Domestic production and international trafficking are proliferating rapidly.

The Macedonian situation needs to be viewed in this context. Its ethnic Albanian population is said to be 23 or 40 %, depending on whether one accepts the government to the Albanian estimate. Over 90% of it is either self- employed or unemployed. Representation in government services is minimal. The leavel of education is significantly below that of the Macedonians. The constitution defines the Albanians as a 'minority' and their language is not recognised as an official language of the country. These are the major grievances that ethnic Albanians seek to rectify.

Identical are the aims professed by the two major guerrilla movements - the UCPMB and the UCK. The former is over a year old, named after the three provinces in Southern Serbia (!) that have predominantly ethnic Albanian populations and is assessed to have about 2,000 fighters. The latter is only a few months old, but with the facts that Macedonia is laso a transhipment point for Southwest Asian and South American drugs, that its dissidents are 'self employed', 'self sufficient', yet fragmented, that education which could open stable they share ethnicity and/or intolerant/orthodox religiosity with the purveyors of illicit drugs, and the fears of deeper motives start to gain credence.

The importance of ethnicity in this melting pot of civilisation that has seen the transit of marauders for centuries, cannot be overstated. The established relationship between the drug and the arms trades, and guerrilla movements, cannot be ignored. The effect of globalised crime, its transnational nature and the impact of the post-Soviet environment cannot be wished away.

The elements of discord have existed for long. They were, however, contained by repressive Governments in the past. The collapse of the Soviet Union and the consequent disillusionment with communism led to period of transition in the Balkans. This period of socio-political reorientation lacked the controls to rein in the passions of ethnic chauvinism and the lusts for long envied consumerism. The results were evident in the repeated fragmentation of Yugoslavia and the accompanying carnage.

NATO defined five major objectives during the war in Kosovo. The need for containing instability so close to home was of course, a primary aim. This however, could also have been achieved by supporting the Serbs (san Milosevic), who received a lot of lip service during and after the war. Of the remaining, two emerged as emotive issues.

The first was the removal of President Milosevic and the second was the championing of an 'Islamic' cause to counter the anti-Muslim image generated by stances on Palestine, Iraq and Afghanistan.

In retrospect, NATO's choice to support the rebels appears to have been ill considered. A locally contained situation precipitated into a mass exodus with its attendant problems.

The fallout of forced rehabilitation was an Albanian blacklash that further alienated the Serbs. The pre-emption of K-For by the Russians caused loss of credibility, but fortunately helped to contain somewhat, a recaltricant KLA. A sitution similar to that faced by the IPKF in Sri Lanka was created. Peacekeeping became an open-ended commitment that is pinching the European nations not a little.

This is manifested in the decision to permit Serbian forces to patrol the Kosovo-Macedonia border. A decision Serbia is exploitating, alleging lack of commitment borde. A decision Serbia is exploiting, alleging lack of commitment on the part of NATO, and reiterating its perception of the conflict as a law-and-order problem rather than an ethnic one.

Any prognosis and further decision-making nevertheless, must take into account both sets of factors that impinge on the present scenario. The ethnic sentiments in the Balkans are strong. They could possibly be the overriding criteria in determining the positions of various players. The motivations would be compulsive and not amenable to logic or mediation.

The creation of extra-national entities in the form of militant groups or large-scale criminal cartels comprises the second set of variables that pose a serious threat to worldwide peace and stability. The lack of an effective policing system, the clout of the drug-arms-crime nexus, especially when combined with religious fundamentalism and terrorism, the emergence of failed states and their domination by various Mafias are all elements that could threaten the existing world order.

The ingredients for a nightmare therefore exist in the Former Yugoslav Republic of Macedonia. It is to be sincerely hoped that these are not dismissed wishfully, but are addressed with international resolve, before they grow out of proportion and engulf large areas and populations in another holocaust.

PTI Feature

Disinvestment : Will it deliver ?

By Amar Krishna Paul

The Centre's move to divest government's stake in pubic sector units (PSUs) and its ''sell-out drive'' have formed the core of an animated debate among the experts and the laity alike.

The newly-privatised Bharat Aluminium Company (BALCO) has become a bone of contention. The drive has made it clear that the Centre is all set to sell the so-called ''sick'' PSUs in the name of disinvestment. Left camp, Congress and criticis called it ''an unfair move''. They have slammed the Centre over the issue. They have averred that the Centre sold the BALCO to Sterlite, a private company, ''in a hush-hush manner'', as a result of which the families of the BALCO staff are now facing ''job-insecurity and uncertainty''.

Meanwhile, Chhattisgarh Chief Minister Ajot Jogi has sued the Ministry of Disinvestment in the Supreme Court and proposed to buy back BALCO shares (50%) at Rs 5.525 bn.

Disinvestment is the parting way of the socialist route of the country's reconstruction. In non-technical language, socialist pattern of society is a social set-up ith wealth distributed as equitably as possible without making the country a totalitarian state. The goal is sought to be achieved through democratic processes. With this aim in view, a mined pattern of planning is evolved.

The two sectors, private and public, are allowed to function independently of each other. The public sector is wholly-owned and controlled by the Government. The private sector is regulated by a set of regulations, licences, controls and legislative acts like Monopolies and Restrictive Trade Practices (MRTP) Act, 1969. The public sector is made to grow by a ''commando style'' nationalisation drive of industries and institutions.

But what is the ''ultimate goal'' of disinvestment in PSUs? The answer is obvious: the main motto of disinvestment in sick state units is ''consequent sell-out''. It is one of the major policy parameters of WB-IMF dictated 4D's i.e. decontrol, devaluation, dematriarisation and denationalisation.

The present divestment drive in PSUs is nothing but the first phase of denationalisation of government enterprises, what is popularly known as privatisation process. Sri Lanka has coined a new word for privatisation ''peoplisation''.

In more recent times, the Central Government has unveiled that it would be selling its holdings in 33 PSUs. It is really an ambitious programme.

Before elaborating the reactions arising out of the sale of ''insignificant public sector firms,'' it is customary to lay some emphasis on the essence behind the disinvestment mechanism and privatisation of PSUs in India today.

Conceptually, disinvestment is a systematic withdrawal of share capital ownership of a big company. It is, nowadays, also known as ''divestment''. Its key objective is to raise public funds and minimise fiscal pressure on the Union Budget slashing public expenditure.

For example, government stake in most of the PSUs is around 50% and the Union Government has decided to cut its capital share initiating corporatisation process. Thus, divestment is a ''core chapter'' of privatisation process. This privatisation refers to any process that reduces the ''involvement of the state or public sector in economic activities of a nation''.

The most powerful argument in favour of privatisation/divestment lies in the fact that while the public sector steel plants have been incurring heavy losses, the privately-owned units continue to make huge profits in spite of all the impediments and handicaps.

It is a great comment to the efficiency and skill of professional managers. Public opinion has, indeed, never been in favour of the PSUs in India, but this sector was promoted and pamered at a very heavy cost to the public exchequer simply on the so-called ideological grounds. Now there is a growing realisation that we cannot indulge in this luxury an more.

Secondly, prices have arisen so deeply that financial constraints are telling upon our economic health so much so that the need for a much higher level of production at a considerably lower cost is being keenly felt. It being so, even the authorities concerned have started feeling that our experiments with the PSUs and socialistic philosophy can kept in abeyance so as to meet the immediate ground realities. These needs can be met only be entrusting the production to private hands.

The saying that the sense of ownership can turn even dust into gold, has become more relevant today than ever before. Since the need of gold is now more keenly felt, we have the necessity to switch over to disinvestment process.

Thirdly, one result of our experiments with PSUs and other socialistic experiments has been that India is today virtually caught in a debt-trap. The dire consequence of this debt-trap is now looking us into the face, so that our socialistic dreams virtually stand shattered.

Last but not the least, the urgency of comprehensive divestment in PSUs is now being felt not only in India, but also in the eastern and western countries. The British Government is emphasising this proposition in respect of some industries which had been nationalised earlier.

Most of the economies of eastern block have already switched over to Western-type democracy and free-market economy because the experiments with State control over means of production have not been able to meet the legitimate aspirations of the people. Socialism has already been wound up in Eastern Europe.

On the contrary, broadly speaking the divestment carried out so far has been too insignificant to leave an impact either on the structure of management or on the working environment of the PSUs. Also, it is unlikely to happen in the future as the government does not yet plan to divest majority of its shareholdings in any company.

Decision-making is still centralised, at the government level, covering all areas from determining the size of investment, choice of technology, product mix to project location. That is, the ''bitter pill'' of divestment can work as ''slow poisoning drugs'' to a country with large-scale poverty and underdevelopment like ours. The chief reasons are as follows.

First, divestment is being encouraged by the capitalist lobby which constitute a very powerful pressure group. Instead of going by the dictates of these capitalists and vested interests, we should think of the larger interest of the common masses.

Secondly, our national economy is a Nehruvian mixed economy. That is, India is not fully wedded to either the private or the public sector, but is a combination of both. It is done so that items of strategic importance and basic needs, which cannot be left to the private hands, are manufactured by the PSUs, and other items like consumer goods are left to the private sector.

Sometimes a question arises in respect of some particular item, whether it can be best manufactured in the public sector or the private sector. Here we have to examine the pros and cons of each proposal and take a decision. In matters like defence production and commutation there is no alternative to public sector.

Thirdly, the crucial question in all production is that of quality. Private manufacturers, whose sole motive is profit, are not much worried about quality of their products. To earn some profits, they will not mind reducing the quality of their products which is against the larger public interest.

The public sector will never play with the quality of its products for the sake of some small extra profits, so, we should not give us PSUs and go in for massive divestment for the sake of some short-term gains. Fourthly, there is every possibility of closing down the manufacturing PSU units which have been sold off to private parties after making targeted sum of profits.

If such units are public utility services or essential commodity related company then the public welfare will adversely be affected. Above all, there is too little scope for job security in a private firm.

Comprehensive utilisation of capital-intensive technique of production in the modern pivate firms has also curtailed employment opportunities. In a developing country where unemployment is high, privatisation is, therefore, not encouraging.

Notably, most of the trade unions are fighting for keeping the PSUs safe and they are also pleading for nationalisation of a few profit-making private sector companies like the tea gardens of the country. To them, for maximising social welfare and fuller utilisation of HRD, nationalisation of tea estates is a must. It is vital to allow the PSUs to face the challenges of the market to become much more efficient.

The crux of the story is that India has already envisaged a number of banking, financial and corporate sector reform measures. During the 50s, the country had more and more financial institution under private ownership. Owing to certain loopholes, most of them were nationalised.

Now these PSUs are going to see epoch-making changes in collaboration with government's divestment package. The government is widening the disinvestment process and regulatory frame work is being intensified.

Of late, the IRDA has been authorised on the lines of the SEBI, which regulates the corporate sector to control insurance market of the nation as private companies and other public banks are ready to enter into it.

Bank branch withdrawal programmes, wage cut agenda, plan to close weak government banks on the absis of MS Verma Committee on the financial sector reforms are the highlights of the disvestment package. The second-generation economic reforms have put a high premium on off loading the weak public sector banks to viable foreign or domestic private institutional players in the cut-throat business of banking.

But this move has started ringing alarm bells among the PSU banks which fear that they may be edged out by their more efficient and cash-rich counterparts in case of privatisation.

As each government at the Centre initiative divestment drives, academic debate on the issue is accelerated. Critics say the programme is limited by some constaints which are referred to as ''seven sins''. They are in brief (I) confused objectives, (ii) lack of transparency, (iii) an increase in asset concentration rather than competition; (iv) a poor financial strategy; (v) unrealistic labour strategies, (vi) financing budgetary deficits with PSU sale proceeds, and (vii) the lack of political consensus.

To conclude, the debate on divestment in PSUs depicts that the policy makers and Nehruvian leaders, like Indira Gandhi, pleaded for nationalisation of banks, insurance companies and other non-financial companies, say about 30-45 years ago. Now the second generation economic reformists are falsifying the nationalisation policy.

To them, the nationalists should be blamed for poor performance of some PSUs. But the last question is : Will the reformists ensure that the new drives will correct the wrongs of the past ? Well, time will tell the truth. Will it not be rational to census the reformists if the current denationalisation drive proves imperfect after 30-45 years ? Wait. Time will tell the truth. PTI Feature