EDITORIAL

NO QUALMS, INDEED !

It is, indeed, remarkable that the legions of politicians who have prospered taking, due and undue, advantage of the Indian Government and the nation feel no qualms in cursing the same government, people and the nation. It is anybody's guess how many of the present day 'leaders' of the Hurriyat could have survived the attacks, reprisals and 'lessons' from their own militants had not the security agencies in the State protected them, directly and indirectly.....more

A HUGE HAND

The destruction wrought in the State by Pakistan is heavy by any reckoning. Countless houses have been gutted, score of school buldings have been destroyed, dozens upon dozens of bridges have been burnt down. A whole community has been got exiled from their homes. And, people have been killed indiscriminately, mindlessely, causelessly. The largest chunk of these is young men and women who would have grown, studied and become earning hands for their families.........more

Kashmir is not Islamic
war or jihad
Men, Matter, Memories

By M L Kotru
No matter what the outcome of Foreign Secretary Chokila Iyer's meeting in Colombo last week with her Pakistani......
more

Communist contortions
of nationalism.......

Yours Randomly,

By Dr R L Bhat
Indian nationalism which had been an incipient undercurrent of the sub-continental psyche received its highest..
more

Militancy and children
in J&K

By Daya Sagar
As regards the State of J&K the Armed Conflicts need to be seen in reference to the ongoing insurgency and militancy. .....
more

Implications of downgrading India’s sovereign railings

By S. V. Vaidyanathan
The downgrading of India’s sovereign rating by Standard and Poor’s followed .......
.more

EDITORIAL

NO QUALMS, INDEED !

It is, indeed, remarkable that the legions of politicians who have prospered taking, due and undue, advantage of the Indian Government and the nation feel no qualms in cursing the same government, people and the nation. It is anybody's guess how many of the present day 'leaders' of the Hurriyat could have survived the attacks, reprisals and 'lessons' from their own militants had not the security agencies in the State protected them, directly and indirectly. It is a common belief that Dr Guru, the one time high priest of 'separatism', would not have died had he been under security protection. As for the other leaders they have been able to function only because of the exertions of the security agencies. Of course, all deaths have not been, could not be, prevented but the fact cannot be denied that but for their presence many more prominences would have been wiped out by the same marauders. And, the free expression they are enjoying is because of these very exertions. Do the militants allow any free expressions to their own 'leaders', much less the fractious leaders who deal in subterfuges? Many may say that it is providence protecting them though, at the same time, they would never hesitate asking more and more security covers. They would do well to keep account of the personnel who have been killed in the militant attacks upon them. That way they may at least pay some of their due debts to these men, who have sacrificed their lives to protect them. Of course, their debts to the Indian nation will never be paid, because they are simply overwhelming. They can however, stop adding to these debts by being less political and more sincere in their assertions against India.

There is a school of thought that holds that the 'separatist leaders' would never dream of seceding from India. They are fully aware how free, how equitious, how caring the Indian dispensation is. They are also cognizant of how chilling the Pak situation is, with its dictatorships, general mayhem and restricted freedoms. The separatist rhetoric, explains the school, has two objectives. First and foremost is to gain prominence, support and 'constituencies', both within and outside the State. The second objective is that by constantly raising the bogey they coerce the center to yield higher quantums of assistance on the one hand on the other escape any proper reckoning of their actions and performances. Of course, it is when they assume power, and every outfit comes to do that in due course. That is why, says this analysis, they never go the whole hog, would never go the whole hog. They can never gain prominence and power in Pakistan that easily. And, few can be sure that they would not sooner be hanged from the Lahore forte, as Farooq Abdullah says.

Indeed, much of the talk of 'regional and local aspirations' in the whole of India is a comouflage for personal promotions as much as a contrivance to achieve those ends. Whole-scale parties have exploited the people and the nation thus to rise to power. When these same 'aspirations' find their support base growing they invariably become 'national parties'. From NTR to Mulayam Singh there is one long line of politicians who have thus deluded the people and done the nation much harm in the process. In this State this short cut to power and prominence has taken really dangerous dimensions, with the leaders ending up faning whole disaffections because the innocent people, who do not see through the 'assertions' of the clever leaders, take them on their word and end up with a destabilised psyche. When the right time comes the 'leaders' without any qualms take the reigns of power, because they 'know' what they have been fighting for. But the people get badly dispirited. And, the ground is ripe for the 'next' crusader to step in, to exploit the people, the State and the nation. Without any qualms, of course.

A HUGE HAND

The destruction wrought in the State by Pakistan is heavy by any reckoning. Countless houses have been gutted, score of school buldings have been destroyed, dozens upon dozens of bridges have been burnt down. A whole community has been got exiled from their homes. And, people have been killed indiscriminately, mindlessely, causelessly. The largest chunk of these is young men and women who would have grown, studied and become earning hands for their families. Instead, they have been fed to a war that serves only Pak interest and pampers its ego of having somehow 'taught India a lesson' or as Musharraf put it 'taken revenge upon India'. As the recent report details, thirteen thousand of them have been killed since 1990. Five hundred have died in just the inter-gang rivalries that also claimed about two hundred of their relatives. But when the mad-hatters die, they never die alone. The thirteen thousand took another ten thousand civilians lives with them and three thousand security men. Twenty six thousand deaths from a people who would not, earlier, go near a gun may be an achievement for Pakistan, but what does it bring to Kashmiris?

Once in early nineties a Kashmiri young man asked his militant peer: how come the same gun that he had been given to fight a jihad with, was in the hands of an Assamese fighting against Bangladesh immigrants and in that of a Naga fighting for a tribalism. The answer was typical: it is not for you to ask questions. None asked questions and arms, huge piles of it, were slipped into the Valley. Twenty-two thousand AK type guns have so far been recovered, ten thousand pistols, one thousand machine guns. The general impression is that this is just he tip of the proverbial iceberg, that lots more remain dumped there. Indeed what was once an immaculate paradise replete with sagacious men and svelte wome is a powder keg ready to explode literally-- so much of explosive power is hidden there. So far 23 tonnes of explosives and 52 quintals of RDX have been recovered. How much more lies strewn around is anybody's guess. The supplies have been massive; the inventory has been equally varied. Everything from cordex wire to rocket boosters and pilotless - craft has been seized in colossal quantities. All that has shown its effects in the deathly destruction that has been there.

A quarter lakh deaths because a mullah somewhere wants to gain access to 'heaven', a general there wants to gain power and keep it, a people there has gone deluded enough not to think of nor approve of any other way to direct their national effort and energies. Pakistan has been doing what the composite delusions there demand, but do the Kashmiris need to be willing tools for carrying them out? Over the past ten years Pakistan has purchased arms worth 4.4 billion dollars from the open markets and sent them across the border to the willing agents of its egoistical, hallucinatory binges. And given them death and destruction in its wake. Of course, the situation in Pakistan itself is no better. They have themselves recovered three lakh rifles during the past year or so. That State is riven with conflicts strewn with guns and gang-wars, but why did the peaceful Kashmiris need to import that culture? To taste death it its foulest fang?

Kashmir is not Islamic war or jihad
Men, Matter, Memories

By M L Kotru

No matter what the outcome of Foreign Secretary Chokila Iyer's meeting in Colombo last week with her Pakistani counterpart, Prime Minister Atal Behari Vajpayee did well earlier to set the record straight so far as his agenda in any future talks with the Pakistani military ruler Gen Pervez Musharraf goes. It was vintage Vajpayee that afternoon in Parliament, when, days after the inquisitors had their say, accusing him of everything short of a sell-out, he spelt out his version of Agra in clear-cut tones. In the process he explained what he made of Musharraf's naivette, what his own expectations had been and how he felt let down in the end. If some thought that it was the usual soft-pedalling of what was perhaps a diplomatic disaster at Agra, Vajpayee was very clear in his mind that the reality was far from that perception. Predictably he did not shut the door on resumption of talks with Musharraf but he made no bones about what the agenda would be whenever they meet next. It could not be Kashmir, Kashmir, Kashmir. A future dialogue on Indo Pak relations could not be held hostage to Musharraf's whims. There is much more at stake in Kashmir than merely winning or losing media wars. Kashmir is not an Islamic war or jihad. It has a direct bearing on the future of the sub-continental polity. It is for Pakistan to decide whether it wants to use Kashmir as a bridge or continue to make it a bone of contention. Either way, Vajpayee appeared to suggest, that there would be no solution to the problem on terms sought to be laid down by Musharraf and his men.

The problem with Musharraf is that he speaks with two voices. One voice is obviously intended to earn brownie points internationally, the one that seeks to project him as a man of peace, willing to go the extra mile along the path of reconciliation with an inimical India. The other voice is fine-tuned to remain in step with the mullahs and radicals within his country which forces him to take the line that there is no terrorism in Kashmir and that Pakistan has nothing to do with cross-border terror.

For the benefit of the internationally community he has kept up the charade of local elections a lead up to higher levels nationally. The local elections may have been held on a non-party basis to his consternation most grassroots political parties are back in place. That certainly will not prevent Musharraf from going ahead with raising an Ayub Khan-like electoral college to finally gain domestic legitimacy for himself or he may even do a Zia by going ahead with a non-party election at the top layer as wel and then handpick a Prime Minister who (like Zia's Junejo) could be kicked out any time. Pakistani military dictators have not been known to accept court to orders nor even the pledges they themselves make. Musharraf, for the record, has another year to usher in democracy in his country. The question is what kind of democracy is it going to be. If he is to stick to his earlier Attaturkian posturing he must keep the mullahs out of the reckoning. Yes, that will mean continued reliance on the military in matters of State but that' the only way he can do an Attaturk. The mullahs and the clergy would have to be sidelined from the electoral process in that event. Can he afford to do it? He can, if his commanders stay loyal and he shows the necessary ruthlessness to put down the mullahs.

But given the Kashmir backdrop it seems unlikely he can get the mullahs and their jihadi groups off his back. He needs them if he has to keep the Kashmir pot boiling. Only the other day one of the better known Pakistani Jihadi leaders was hectoring India on Kashmir on the American CNN. As a counter to ''Indian barbarity'' in Kashmir his own and other jihadi groups, said the beard on the idiot box, the jihadis would strike in the Indian heartland, target top Indian political and military leaders. And he said it with the straightest of faces.

For the rest you have to listen to the rantings of the Lahore-based Dawarul Irshad and its armed wing, Lashkar-e-Toiba or to the top leaders of Harkatul Mujahideen and the Jamaat-e-Islami. They given you the impression that Pakistani is about to launch a massive terrorist assault all over India. One of the Jihadi outfits has welcomed the emergence in India of fanatic fringe organisations like the Bajrang Dal, the Shiv Sena and the VHP promising to one day confront the Hindu chauvnists against the might of Islamic forces. One doesn't have to really refute the absurd position of these Hindu ''organisations'', but the fact is that their noise level is inversely proportional to their marginalised position in the overall Indian picture.

In Musharraf's Pakistan the Jihadis have spread their tentacles all over the land and what's more they seem to be prospering. And more disturbingly for us, they seem to be pushing in as many mercenaries into Jammu and Kashmir as they can. The Jihadi rhetoric at the moment appears to have gained much ascendancy across the border and its ramifications are becoming visible in Jammu and Kashmir with terrorists throwing acid on innocent women students, insisting on men sporting beards and wearing salwar kameez a la Taliban. How absurd must all this appear to young Kashmiri men and women when they see, courtesy PTV, their Pakistani counterparts (lumpen apart) in Lahore and Karachi sporting trendy clothes, doing song and dance routines, walking down the ramps.

And this finally brings me to the ''bold'' and ''dramatic''- ''draconian'', if you will-decisions taken in New Delhi the other day about how to tackle terrorist activity. If merely by declaring certain parts of the State as a disturbed area the problem of terrorism could be solved then the problem in the Kashmir province should have ended many years ago when district after district was declared a disturbed area. By extending the ''disturbed'' net to Jammu province, I am afraid, the problem will not be solved. Only you will give an incompetent State Government further tools to entrench itself in power.

Under a similar earlier dispensation in Kashmir a unified command comprising the Army, Border Security Force, CRPF etc has already been in existence for long. Top commanders of the security forces form the core of the command centre with the Chief Minister at its head. What we have seen of the functioning of the command has been hardly encouraging. For one thing, a peripatetic Farooq Abdullah is usually unable to chair the unified command meetings; second, inter-service rivalries, dictated more by rank than substance, rarely permit cohesive action.

I don't see the situation changing in Jammu. If the Army is to be at the heart of counter-terrorist activity it follow that it should have the major say in policy, of course, not to the exclusion of the views of other para or civilian forces engaged in the operation. The Chief Minister should come in only when the political aspects of a particular operation are involved. For the rest, once the task has been identified, the execution should be left to the field commanders. The Security Forces should in no case be converted into handmaidens of the discredited political leadership in the State.

We have to remember that Pervez Musharraf, the commando, has given no indication of his willingness to rein in the terrorists. His drum-beaters have been going round the world once again plugging the line that terrorism in Kashmir is in reality a freedom movement and that no Pakistanis are engaged in it. Were it really an indigenous problem we would not have been bombarded day after day with those fiery jihadi invocations from the Pakistani soil and aired (with nauseating fudging of video tapes) by PTV with unfailing regularity. If the terrorist threat in Jammu and Kashmir is to be countered effectively the unified command will have to become a reality. Military decisions should be left to the men from the military.

The State government should concentrate on addressing the problems faced by the common people which it unfortunately has failed to do so far. I have a gut feeling that the raising of additional village defence committees, hopefully better armed, too, is not going to solve the problem. It will become another vehicle for politicians to promote their vested interests.

Communist contortions of nationalism.......
Yours Randomly,

By Dr R L Bhat

Indian nationalism which had been an incipient undercurrent of the sub-continental psyche received its highest assertion during the first half of the twentieth century. Most probably, the Muslims would have been an inalienable part of it. Indeed, the Urdu Pess till 1920 comes through a strong supporter of the nationalist urge. By then it probably caught up with the high priests of religious-nationalism Sir Syed et. al. and by forties when freedom looked imminent, became a rabid communalist organ for propagation of whatever Jinnah proclaimed over the Muslim League platforms. All this can counter to the nationalist fervor that was forcing the imperialism out of the country. Its clear aim was to stem the rising nationalism. Though the realization of the nationalist urges was too deep to be drowned by this effort, it did succeed in denting the edge. A section of the people was finally persuaded not to be a part of the nationalism.

Of course, the greatest beneficiaries of this fracture were the English rulers. They had been fostering, if not actually orchestering, this effort from the days of Aligarh movement. The other movement that came to subvert the idea of Indian nationalism during the forties and following decades was communism. This was a movement that was actually suppressed by the British in its formative years. But by the forties a realignment of the forces in Europe had taken place. Stalin, who at one time had been an ally to Hitler, became a partner in the Anglo-American effort against the axis powers after Germany invaded Russia. The Indian communism received orders to support the empire and the faithful followers shifted their alliance.

Actions of the communists during this time against the freedom struggle have been well documented. But the contortions this movement imposed upon Indian nationalism after independence have not received equal notice. Over the past half a century they have been undermining the idea of Indian nationalism, ridiculing it, loosening every brick in its foundation as if in a grand conspiracy. It is said that they have mostly been well-meaning souls with good of the Indian people at their hearts but then, as the well known axiom says, more calamities have been brought about in this world by sincere intensions than wicked ones. They did it all from the high pedestal of an ideology. Their motivation was promotion of the ideology that they thought good rather than wholesome, unprejudiced pursuit of knowledge. That was an age when the communist ideology was synonymous with liberation, humanism, emancipation... indeed, all that has been good in the human thought.

The oppression of the centuries weighed heavy on the minds of the people. Poor came to be easily perceived as an entity, a class. Generations of thinkers have slid down this slope to land in a milieu that rejected society, its norms and conventions, nationalism, its premises and parameters, in favour of an ideology that was supposed to be universal. When it was not clear communism, it was socialism or a loose leftist leaning. People tended to diistinguish the three but they were only phases, stages along the steep climb up the pure Marxist ideology. Only it was neither pure nor an ideology. Its purity became suspect when Commintern, the international communist organization became an organ for advancing Russian interests. Its ideology betrayed itself when it aligned with fascism, Nazism and then imperialism for short-term benefits.

But its blithe adherents in here, and in many other places too, saw none of these. They didn't see the clear rejection of universalism when the Russian and Chinese influences (interests) carved the Indian communists into two mutually antagonist groups. But the most glaring blindness was shown with respect to the national here. When communist movement failed to become a nation-wide force it set about fanning regional and sectarian indentities to gain pockets of influence. All the 'regional leaders' who have over the years come to represent local aspirations have been stranded there by he communist, socialist or leftist boats. They remain covert negators of the Indian nationalism. On the other hand, thousands of other communist 'recruits', academicians, philosophers, social scientists embarked upon a vast project to belabor every symbol of national identity.

Indian society which had resisted the Islamic and Christian wedges, had fought the British efforts to split it for their imperial ends, was cleaved vertically by those soft spoken seers who saw no good anywhere there. There were negative influences in the Indian society for sure, but it had a far greater positive content. It is this positive fund that has sustained this civilization on its long history and prevented its being effaced like its fellow travelers. It was also the reason why the communism had not succeeded here. So its foot soldiers took to dismantling the society, bit by bit, part by part, all through its languages, cultures, social structure, literature and art, philosophy... everything that came handy. Indian philosophy was 'proved' to be nothing', the society 'exploitative', the mores were 'shown' to be 'wrong' and every achievement was soundly trashed.

The truth that contemporaneous societies and polities in other parts of the world were nowhere near the Indian standards but were downright brutal was never told. The communist effort simply castigated the Indian society, culture and ethos. It could not but dampen the nationalism. It did so. The nationalism that was so emphatic at the start of independence has almost receded into that incipient mode that had seen the nation divided into countless 'identities' and to become easy prey for invaders to trample it under their feet. If today the nation is searching for elements to assert its idea, it is thanks to these denigrators who have caused that fervor to be dissipated, knowingly or in ignorance.

Militancy and children in J&K

By Daya Sagar

As regards the State of J&K the Armed Conflicts need to be seen in reference to the ongoing insurgency and militancy. More particularly after 1989-90. The Psychological, Physical and Social angles should be kept in view while looking at the Child Groups in J&K.

They are from those parents who are migrants like majority of Kashmiri Pandits who have left Kashmir Valley, Hindus who have left their homes in Districts of Doda, Udhampur, Rajouri and upper reaches; as well as those including even Muslims of Kashmir Valley who have left remote villages and come to the towns of Kashmir Division of J&K.

This category is under influence of terror.

They suffer from poor health.

They are in many cases under Psychological depression.

The environment and memories of the times of their displacement have in some cases polluted their minds socially.

Those who are still living back in the areas under regular armed attacks by the insurgents, militants and actions by the security forces too are adversely affected. They suffer from :-

(a) Heavy stress (b) Depressions (c) Poor Health (d) Increased infant deaths (e) Mothers under heavy fear psychosis there by retarding the growth of babies both physically and mentally.

Children who get injured or hit as a result of on going armed conflicts and belong to poor parents from remote area are worst sufferers since medical aid is remotely available to them and hence the handicaps produce more affects on them and they have to bear it for decades ahead.

The sick children fail to get immediate medical attention due to restrictions imposed on movement due to insurgency and combat operations; and more particularly when located in far-flung and backward areas. Even high fever could make child lose his life or may become physically or mentally disabled for life. And cases have surely been there.

Children of poor parents are mostly the one who suffer physically and educationally. The resourceful parents have mostly moved the children from disturbed areas (even out side J&K) and have secured quality education for such children. But those from poor parents have stayed back in militancy affected areas where schools remain closed and they do not have peace at home for the studies as required in today's competitive world.

The worst affected are children of poor parents (b) Children from Backward areas (c) Children from Far flung Areas (d) Children from Rural areas (e) Orphans (f) Those living among one particular religious community (g) Those who see their nears and dears being simply on the basis of theppir community or religion.

The worst damage to Innocent Minds (Children) lies in... life long hatred in their mind against those who made them to leave their home, or killed their parents, or subjected them to physical stress and particularly when it turns towards those innocents who unfortunately belong to the religion or the community of the militants or insurgents thereby damaging the social matrix of the society. And similarly the minds of the young of other community get polluted when there is no one near them to protect them from the might and wrong information campaigns of the insurgents against the members of the society as well as the security forces who may belong to other community.

They have been made handicapped physically, educationally, economically and in their capacity to build their future. They have been socially pushed back, those who have lived in 12 years of armed conflicts (acts) have very less capacity to take to good economic means of living and there are all chances for exploitation of such Grown up Children by the militants, criminals and religious fundamentalists.

The problem has to be hence seen more in backward, rural, poor, illiterate and innocent people who have been much exploited by their fortunes and could still be exploited by those who have no regard for Human Values.

Implications of downgrading India’s sovereign ratings

By S. V. Vaidyanathan

The downgrading of India’s sovereign rating by Standard and Poor’s followed by a revision of the foreign currency rating outlook for corporate "dadies" such as Reliance Industries, Indian Oil Corporation, NTPC and Larsen & Toubro, is a warning signal to the mandarins of the North Block.

What is new in the S&P’s rating? And in Moody’s? Continued fiscal slippages at the Centre and in the States – this is not news nor the plunge in tax revenue collections in the first quarter this year. Who does not know that the Vajpayee government is too deeply caught in day-to-day fire-fighting to spare much time for further reforms in the economy? Nor is Moody’s perturbation with the emergence of scams in the financial sector so much of a profoundly unknown dimension of the Indian economy.

The reported reactions of the Finance Minister, Mr. Yashwant Sinha, and the Governor of the Reserve Bank of India, Dr. Bimal Jalan, and the not-so-coincidental "dismissive" mode of the stock and forex markets, are not mere manifestations of some bravado or sheer unwillingness to listen to the voices of the credit-rating agencies. There is no flaw in the perception that the fundamentals in the economy continue to be strong relative to the actualities of many other developing countries including the erstwhile "tiger economies".

Forex reserves of $ 43.6 billion are a "big deal" for a country that faced the ignominy of an external debt default, only about ten years ago! A GDP growth rate that may cross 6 per cent this year and an inflation rate of just around 6 per cent in terms of the Consumer Price Index, are not precisely the pointers to a meltdown!

With the data system in the economy becoming much more transparent than in the pre-1991 period, credit-rating itself, perhaps, is becoming a "sunset profession." The policymakers may not be far wrong in treating S&P’s, Moody’s and company and their qualitative assessments of the economy as being premature or even tendentious.

Yet, it would be foolhardy for the policy establishment not to see in these "downgrading messages" a growing apprehension among international investment analysts that India is rapidly forfeiting its credentials as an emerging "favourite" among investment destinations in the developing world.

The Enron tangle is enough to proclaim India as a classic example of "collapse of a reform agenda," regardless of who, between Enron and the Maharashtra Electricity Board, is "more wrong". If the truth is that the FDI scenario for India is quite bleak, we do not need S&P’s, to "break it" for us!

Leave alone the FDI component in the external sector. The tidings from the export front are not too comforting.

When the U.S. economy catches a cold, the world is set on a bout of sneezing – thus goes the new wisdom on globalisation. India’s exports to the U.S. account for hardly 2 per cent of the total imports of the U.S. Yet, to the extent that for India, these amount to 20 per cent of its global exports, any shrinkage presages a disproportionate order of dislocation to its own economy.

The slowdown in the U.S. economy and its reverberations across the developed world obviously are bound to impact adversely on the Asian economies as well. The first quarter data covering April-June 2001 for the South Korea, Thailand, Singapore, Malaysia and the Philippines, Japan constitute a mega-crisis by itself with the government largely benumbed by the economic slowdown, not knowing where to draw the line between a cheap money policy and an expansionist fiscal stance.

The first two months of the current fiscal year, April and May, showed India’s exports growing at a deflated rate of around 5 per cent per annum, in marked contrast to 30 per cent in the corresponding period in 2000-01. The provisional data for June, now available show that there was an actual decline by 4.6 per cent so much so the exports during the first quarter have seem a dismal slide by around 1.8 per cent.

The Centre for Monitoring Indian Economy (CMIE ), Mumbai, has now projected total exports for 2001-02 at $ 47.5 billion – a growth by 7 per cent as against the target of 18 per cent set by the Union Ministry of Commerce. While the sceptics have a point in forecasting a meltdown in exports in view of a perceived recession in the U.S. and in Europe, it is not implausible that the lacklustre export performance of India during April-June has had more to do with domestic economic uncertainties than with the U.S. economy hiccups.

Although preliminary indications are that the slowdown in Indian exports has covered the whole gamut of exports – agricultural commodities, engineering goods, textiles, handicrafts and gems and jewellery – a closer examination of the phenomenon by the export promotion councils and the commodity boards could perhaps yield meaningful clues as to how the reversal of a year of buoyant growth at 21 per cent has occurred and that too so abruptly. In a dynamic global trade situation, aberrations rather than deep-seated disequilibria can easily confuse the exporting community and the policymakers.

Given the fact that there has been a lot of vacuous politicking during the last three months and little of pragmatic implementation of the proposals set out in Mr. Sinha’s budget for 2001-02, the economy itself would appear to be in a deep freeze, with industrial production continuing to chug at a "3 per cent minus" rate and consumer demand remaining subdued. It is an altogether depressing scenario with manufacturing enterprises laying low and the investment outlook continuing to dampen the entrepreneurs. That the export horizons have been clouded owing to the overall inertia in the economy and the dominant mood of "wait and see" needs to be underscored.

The perennial question of export competitiveness involving transaction costs, the exchange rate of the rupee and the range of issues relating to the infrastructure, particularly the turnaround performance of ports, continues to call for coordinated action. Nothing much has occurred in the matter of special export processing zones (SEZs) which the Union Minister for Commerce, Mr. Muraroli Maran, rightly advocates as the thrust area of export policy for the New Decade. The fact is that not many State governments are alive to export growth as a powerful stimulus to the regional economy. With all its political "fire-fighting" missions, the Vajpayee Government is perilously close to achieving the dubious distinction of a non-performing government !INAV

 



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