EDITORIAL

Enlist the people

The State of Jammu and Kashmir may be one of the most sparsely populated states in the union, but this is true only for the larger picture of the State. Within the State the density of population varies in a very abnormal fashion. The large tracts of Ladakh that comprise almost half of the State's land area are very thinly inhabited. So is the large district of Doda, which makes up another twelve percent of the State area. There is a high density in the southwestern slot. These are the major districts of Jammu and the whole of the Valley. The land portion is a mere third of the State's area and accounts for nearly three-forths of the population of the State. This is the main focus of the terrorists. While there has been some movement of militancy towards the Kargil district, it has been well contained there. The major extension of the terrorists over the last half a decade has been to the southern parts from the Valley of Kashmir. These are the districts of Jammu. The latest to be added here is the southern fringe of the State comprising the Kathua district.

The district over the last two or three years has been a great increase in the terrorist infiltration as well as action. It has also....more

Sam's spy in the sky

By Allabaksh
The United States is depending as much on its missiles as on the spy in the sky in its hunt for the most wanted man, Osama bin Laden, dead or alive. Most American military spy satellites have just one task. Two private imaging ....
more

Terminator technology
Who dies-seeds or the farmers?

By Dr Madhu Saxena
and Dr Roopa Vajpeyi

While USA has given green signal to the controversial terminator technology to spread its tentacles in its own country, time would not be far away when it would reach other countries on the globe as well. The technology, which ....
more

No solution to break
the bind of deepening
demand deflation

By S. V. Vaidyanathan
The appalling terrorist attack on the United States and the counter-attack on Afghanistan by a coalition force has sent shock waves across the world. An increasingly globalising world has to encounter growing vulnerability and .....
.more

EDITORIAL

Enlist the people

The State of Jammu and Kashmir may be one of the most sparsely populated states in the union, but this is true only for the larger picture of the State. Within the State the density of population varies in a very abnormal fashion. The large tracts of Ladakh that comprise almost half of the State's land area are very thinly inhabited. So is the large district of Doda, which makes up another twelve percent of the State area. There is a high density in the southwestern slot. These are the major districts of Jammu and the whole of the Valley. The land portion is a mere third of the State's area and accounts for nearly three-forths of the population of the State. This is the main focus of the terrorists. While there has been some movement of militancy towards the Kargil district, it has been well contained there. The major extension of the terrorists over the last half a decade has been to the southern parts from the Valley of Kashmir. These are the districts of Jammu. The latest to be added here is the southern fringe of the State comprising the Kathua district.

The district over the last two or three years has been a great increase in the terrorist infiltration as well as action. It has also become a feeder channel for the terrorists in the Doda, which the district touches in its northeastern hills of Bani. This gravitation is the most serious development of these years. Possibly it could also be the place where the operation to fold up the terrorism in the State and bundle it out could begin. But that would remain only a pipe dream until there is full involvement of the army, administration and the people in the effort. Though the army, administration have been in good concert here, there is a feeling among the observers that an all-out effort has not come into operation even months after the areas were declared disturbed. The same observers point out that the involvement of the people in the areas in the campaign against the terrorism has not been of the desired degree. Indeed, the people's power and vigilance is a formidable asset available to the security fighting the terrorists here. The people on one hand are in a position to render a yeoman's service here and are also willing to participate in this undeclared war against the State.

But unfortunately the participation of the people has not been enlisted fully and functionally here. Though Village Defence Committees are operating in Doda and doing some good work there, the potential has not been fully exploited. VDCs are ill equipped. They are also not well connected. The idea of the VDCs can work only if it has a full backing of the security agencies. They can act as the vanguard of the fight against the terrorists, but they must have summonable access to the assistance of the security agencies, which can reach them at quick call. Somehow the VDCs have been taken as something, which should be able to confront terrorists on their own. And that wrong assumption has cost many lives there and even cast doubts on their role. There are many people who would simply dismiss the VDCs as practically 'ineffective' when in fact they have rendered great service in saving the lives, if not in actually halting the spread of terrorists. If anyone thought that the Village Defence Committees would drive the terrorists out singly, with their 303 rifles, they were living in a fool's paradise.

The terrorists, as is being realized now, are highly organized, well trained, well supplied and highly motivated troops who would not be fought out by amateurs. In many instances they are actually commandeered by the regular Pakistani army personnel. The guerilla tactics, which they have adopted, are hard to be combated even by regular security forces. The effort needed here is great and it must be highly methodical. Hence the Village Defense Committees have been found wanting. But the deficiency is more on the part of the support and facilities and defense committees were given than in the actual efforts of the VDCs. And they are not the last word in peoples' participation. As all analysts agree the fight against the terrorists has to be multifaceted and multipronged. The VDCs here provide the first arm, which can bolster the efforts of the security agencies. But the strategy has to look to more extensive participation of the people. Two great handicaps of the security agencies are the intimation and timing. The general populace is best suited to act as the eyes and ears of the security agencies. They are everywhere all the time and can easily supply timely intimation.

The trick is to enlist this wide network in the intelligence gathering of security forces. For this the villages and the areas have to be interlinked more effectively. The people have to be given the assurance that their efforts would be 'rewarded'. Though monetary rewards too can be helpful, it is the 'reward' of action and response that has to be ensured. For an instance the high security mobilization that the Malhar area of Billawar has now seen should have been mounted atleast five years ago when there were clear indications that militants infested the high mountain lands there. So it has been in Bani where the terrorists have been having the run of the higher reaches for the last several years without any effective counter. The repeated massacres in Doda show that the enlisting of the people, information networking and the location of the security forces pickets at strategic places, wherefrom they could reach the distress areas at quick notice, have not taken place. All over the involvement of the people has been halting and hesitant. The civil administrating has not acted as a good coordinator here. In fact reports from different places assert that the administration does not particularly favour this type of initiative by the people, until the situation gets serious and then nothing helps. That situation has to change. The people, administration and the security agencies have to act in active concert. This terrorism has to be fought out.

Sam's spy in the sky

By Allabaksh

The United States is depending as much on its missiles as on the spy in the sky in its hunt for the most wanted man, Osama bin Laden, dead or alive. Most American military spy satellites have just one task. Two private imaging satellites, OrbView-4 and Quickbird from commercial operators, Orbimage and Digitalglobe are also chipping in with their, help on request.

OrbView-4 was put into orbit ten days after Black Tuesday from California. It is designed to analyse surface composition and see through camouflage. Quickbird is about a year old in the sky. It was launched in October last year. It can scan the earth very closely and record details smaller than a meter.

The spy satellites, often called eye (ear?) in the sky are designed to detect transmissions from radios, radars and other electronic systems. The interception provides vital clues to the type and location of the transmitter even if is a hand-held radio.

Most military communications, whether it is of Uncle Sam or his foe, Osama bin Laden are in codes. These encrypts can be deciphered with some effort using the computer processing techniques. One hundred per cent success is, of course, not assured. Not always, anyhow. An analysis of the pattern of transmissions over time helps in getting an additional input.

During the Gulf war, the United States deployed a wide variety of systems to collect as many data as possible on the Saddam Hussein Empire. Unlike now in the case of Afghanistan, where there is only one source for hard intelligence, Pakistan, (because of its identification with the Taliban, the intelligence inputs from it are suspect), there were one too many sources, space and terrestrial, in respect of Iraq.

In fact, the Americans had a first knowledge of Baghdad till a few days prior to the misadventure into Kuwait. The US envoy to the Iraqi capital was privy to most happenings in the country. Yet, when the chips were down the Americans had no alternative to requisitioning intelligence communication services. How effective these were in the ultimate analysis is a different matter.

According to some strategic experts, Iraq was fairly successful in dodging the "American spies"’ at least prior to the final weeks of the war. The first warning signals about an impending invasion of Kuwait was picked up from the Soviet-built ‘Tall King’ radar. It was out of service for several months. The 350-mile range radar became ‘alive’ on July 29, 1990, as the Iraqi tanks were getting ready to roll down the highway to Kuwait.

By early October, U.S. electronic intelligence had some success in monitoring Iraqi military communications though the Saddam men's recourse to underground cables to communicate made ''crystal gazing" their intentions very difficult to the most determined even.

It is a surprise, therefore, when everything was going in their ‘favour’ why they surrendered "meekly'’. It is certainly a subject for deeper analysis some day, not now, when America is still in a mood to punish Iraq accusing Baghdad of helping the Osama combine.

Osama bin Laden, the American target in Afghanistan, has not been using mobile phones. He has given up his love for the sat phone a while ago in the Clinton era itself. Neither he nor any of his close lieutenants depend on the Pakistan telecom system.

Most important cities of Afghanistan are on the Pakistan network and as such are just a local call away. Some can be reached from Peshawar and some others from Quetta. From rest of Pakistan, they can be dialled using the STD facility.

The fear of being ‘heard’ is all-pervasive at the best of times. More so, now when Gen Musharraf, the Pakistan President is fighting his own survival battles and, therefore, cannot be counted as a part of the inner circle. Nevertheless, the Americans have not given up hope and are pinning their hopes on some telephone link somewhere coming crackling into the interceptors’ log.

Till such time, there is no alternative to the high-resolution images of the Afghan land mass sent from imaging spy satellites to the Pentagon. These images record people on the move too. Computer study of these pictures should throw light on the state of affairs on the ground. These may even pin point Osama bin Laden and his cave if any. If this happens, then it would make the operation a really short military adventure into the unknown. Who knows? Any invention is as much a matter of chance as luck.

As pointed out at the outset, the OrbView-4 offers one-meter resolution multi-spectral imagery. The high-resolution camera on the satellite, owned by Orbimage, acquires hyper spectral imagery, which is useful for classifying material types on the Earth’s surface. It visits each location once in less than three days and is capable of turning from side-to-side up to 45 degrees from a polar orbital path.

Primarily, OrbView-4 utility is in agriculture and forestry management. Now, of course, the Alliance against Terrorism stands to benefit since the dividing line between security and prosperity is very thin. In a manner of speaking, this is not an extra duty for this or any other satellite.

Helping national security agencies manage international relations on a global scale is a part of its charter. It is for nothing the on-board instruments are able to offer one-meter panchromatic imagery and four-meter multispectral imagery with a swath width of eight kilometres besides a 200-channel hyper spectral imagery with a swath width of five kilometres.

Orbinage has in all three satellites in the ‘service’ of the needy. View-1, launched on April 3, 1995, is providing daily several images of the earth's crust and cloud formation. These have improved long-term weather forecasts. The second satellite, View-2, has been offering broad- area multi-spectral imagery of both land and ocean since August 1, 1997.

OrbView- 3 is still in the works though its successor, OrbView -4 is in its orbit. It may be launched some time next year. Its resolution imagery will help the US to keep watch on potential conflict zones, identify and (target) enemy troops and assets, plan air, ground and naval missions, deploy resources; and assess battle damage.

On Black Tuesday, human intelligence failed in its entirety. But the spy satellites did their job. They picked up the aftermath of the attack on the twin towers of the World Trade Centre. The gaping hole left by the collapse of the towers and the damage to the Pentagon were seen by Ikonos satellite, orbiting 423 miles above the earth.

Ikonos is the woods first high - resolution commercial earth imaging satellite. It moves at a speed of 1750 miles per hour.

Its one-meter resolution image of Pentagon shows extensive damage to the western side and interior rings of the multi-ringed building. In another image dearly visible are the cars in the Pentagon parking lot.

The images of Manhattan show the remains of the 1,350-foot WTC towers, and the debris and dust that had settled throughout the area.

Also noticed are the many emergency and rescue vehicles in the streets in the vicinity of the disaster.

‘The Ikonos graphically recorded the dramatic images of the Osama terror. These are offering a new perspective to the attack on the symbols of American pride.
-Syndicate Features

Terminator technology
Who dies-seeds or the farmers?

By Dr Madhu Saxena and Dr Roopa Vajpeyi

While USA has given green signal to the controversial terminator technology to spread its tentacles in its own country, time would not be far away when it would reach other countries on the globe as well. The technology, which would hit markets by January 1, 2003, is currently the greatest threat to humanity. If, it is commercialized on large-scale basis, it will inevitably lead to famine and starvation on a worldwide basis. Major impact would be on over three-quarters of the world’s farmers (including many of the poorest) who depend on saving seeds from one year to-the next.

The basic theme to popularize this technology says - that since excessive use of fertilizers has caused land degradation, manifesting salinity and alkalinity. Pesticides, though efficacious, have caused enormous damage because of non-judicious use or have accidentally impacted non-target organisms. Therefore, productive seeds with quality traits are the answer to the problem, In this technology, a useful gene coding for a property is inserted into the plant compatible promoter and a terminator sequence Genes promoters and terminators are DNA sequences having different properties. The genes used are usually obtained from other organisms or they can also be synthesized in the laboratory. The promoter and terminator sequences direct the genes to develop into the desired trait for which they are used. The terminator sequence however renders the plants incapable to producing fertile seeds. The net result being, you get something additional only on loosing something so basic like production of fertile seeds. Indeed it is a blessing in disguise!

Implications of Terminator Technology

* The poor farmers in India and other developing countries may get tempted to use this technology or if forced due to their ignorance they may not be aware of the embedded terminator technology into the new varieties of seeds in the market. They will end up buying them with the motif of having a high yielding crop. Such a crop, if fails will end up adding to a number of burdens on the farmers in the current as well as in the subsequent generations,

* Their crop won’t be affected that season but when the farmers will sow the seeds next season they would discover that their seeds are sterile, so they do not germinate when re-planted.

* Farmers will neither get the fruit nor can save the seeds for replanting or breed new crop varieties, and they are forced to buy fresh seeds year after year

* All investment would be lost.

* May end up having contaminating certain other plants causing environmental concerns or gene pollution. It is likely that the trait of seed sterility could be passed to other non-genetically-engineered crops making most or all of the seeds sterile in the region.

* Poor farmers in an area might have to face famine and hunger leading to Markets suicides and starvation deaths.

Markets

It is a glaring fact that India has entered the Guinness book of world records in being the number one country around the world in importing large variety of seeds. India buys more than $2 million worth of fruit and vegetable seeds from the US every year. With a market share of 23 per cent, the US is the largest supplier of seeds to India. Companies like, BASF, Du Pont, Pharmasia (Monsanto) have patents on Terminator Technology. Delta and Pine land (D&PL) and the United States Department of agriculture (USDA) jointly own the terminator patent (US #5,723,765). US has granted permission to the $301-million D&PL, one of the top seed giants world over and USDA - to begin commercialization of seeds empowered with Terminator technology. In the process USDA- who will get a royalty of 5 per cent on the net sales. They have now jointly applied for a license in 78 countries to sell seeds using this technology. United States Department of agriculture.

Further the companies hope that sterile seeds will enable them to expand their markets for Genetically modified food in developing countries. As it is, the modern technology has reduced the scope for saving seeds. The hybrid, high yielding seeds reproduce badly, if at all, thus forcing farmers to come back and buy more. Hybrid varieties of seeds are particularly poor at reproduction, and both developing and developed countries now tend to buy seeds each year. This habit will silently seep in and force farmers to buy terminator seeds each year without protest forgetting their own rights.

Impact on Farmer’s Right and Biodiversity

Farmer’s have fundamental right to save seeds and breed crops. But if this technology enters our country, this right would eventually.be lost and with the passage of time it will have a hazardous effect on destroying the ever shrinking forests with their biodiversity, It is said that each day one plant species becomes extinct.

Further, Lok Sabha recently passed the Protection of Plant Varieties and Farmers’ Rights Bill, 1999. According to the bill the farmers are recognized as breeders, cultivators and conservers of the seeds in their possession.

It provides them the right to register a variety they have evolved over a period of time. They can also legally sell their seeds but cannot sell for reproduction under commercial marketing. Farmers can get their evolved varieties registered only if they are able to conform to the criteria of novelty, uniformity and stability through a difficult and stringent process.

The above bill although superficially gives the impression of coming out in favour of farmers but farmers are actually the bill’s primary and targeted victims. It creates a paradise for multinational breeders and hence it is suspected whether farmers I will be able to trade in seeds or not. It facilitates filing of lawsuits against farmers if found selling patented or branded seeds with penalties to the tune of either three years of imprisonment or fines upto Rs. 10 lakh. The possible consequences are horrendous.

Also that it grants permission to the back door entry of Genetically Modified crops and their seeds. Consequently farmers will surrender to the multinationals with their high quality terminator seeds instead of their own seeds which will each time have to be proved for their novelty. Thus leaving little scope to enter the commercial market.

It is said that Monsanto, have drawn up rigorous licensing agreements for farmers in the US and Canada who wish to buy their genetically modified seeds. Monsanto had the right to visit the farmer’s land and take seed samples to check whether the farmer is obeying the contract.

The farmer also had to ensure that anyone who bought his produce followed the same rules, otherwise he as the original buyer, will have to pay the penalty. The obligations of the contract were fully binding all the successors or people doing business with the contract holder, in the process the farmer himself cannot exercise his own right without Monsanto’s explicit permission. It has been reported that by early 1999 Monsanto had contested 525 cases against farmers who saved or re-used the seeds, claiming damages of tens of thousands of dollars. As a result, more than 100 farmers in the US and Canada destroyed their crops out of fear from being sued.

Can we say No to Terminator!

The technology, which could spell disaster for hundreds of millions of people around the world, is being protested as a dangerous and immoral technology that should never see the light of the day. The technology’s sole objective is to increase the profits of seed industry by forcing farmers to return to the commercial seed market every year. While the biggest nation USA promotes the technology it would be seen in the times to come that how many countries could really resist it.

Global Issue

The controversial terminator technology is being debated worldwide. Although India’s Agriculture minister has told the Indian Parliament in August, that he has banned the import of seeds containing the terminator gene because of the potential harm to Indian Agriculture. Yet, it is a big question that how far India doesn’t come into the trap of USA and other developed countries for this matter.

No solution to break the bind of deepening
demand deflation

By S. V. Vaidyanathan

The appalling terrorist attack on the United States and the counter-attack on Afghanistan by a coalition force has sent shock waves across the world. An increasingly globalising world has to encounter growing vulnerability and there is no escaping the reverberations of external shocks in this new ethos. Will the global economy dragged into a recession along with the US? Will the US become restrictive and initiate a protectionist stance in the global economy? What are the likely consequences of these events on India? The answers to these questions are tentative and sketchy.

The extent of the impact on the economy would depend on whether the attack is a one-time event or the start of a new period of heightened uncertainty. That the US and the global economy are both on the decelerating growth trajectory is well-known. The US economy is sure to bear the burnt. It will be hit by the severity of disruptions and dislocations of trade, travel, tourism, civil aviation, and a host of financial services, especially the insurance sector.

Apart from the loss of income, there is going to be a ‘negative’ real wealth effect due to the erosion in stocks market valuations. If a rapidly falling consumer confidence index, the set back to retail trade and the creeping increase in the unemployment rate are any indication, the US economy is in a recession. All this would impact its prevailing fragile growth prospects.

The $10-trillion US economy represents over 22 per cent of the global economy and accounts for 14.2 per cent of the export of goods and services. It is the largest importer, providing support of over $1,258 billion, or 18.9 per cent, of total world supplies in 2000. In the 1990s, the US recorded an annual import growth of 9 per cent, while the average for the world was about 6 per cent.

Thus, it served as a powerful engine of world economic growth through its massive imports. Besides, the US has been attracting a major share of the world capital flows and has been the significant driver of foreign direct investment. Any setback to such a formidable economic might is bound to make the outlook uncertain for the rest of the world. India cannot be an excemption.

How will the impending global recession affect India? For the past two-three years India has been affected by a crisis of underperformance, credibility, and confidence. Our real GDP growth is progressively declining. Hopes are now being pinned on the normalcy of the monsoon to bail out the economy. But fresh external shocks threaten to neutralise the gains of a strong agricultural recovery.

In the short term (up to this fiscal), India’s economy would suffer a demand contraction impact due to the loss or reduction of: (i) Remittance income; (ii) exports of goods and computer software; (iii) ‘real’ wealth effect due to the erosion of market capitalisation of equity investment; (iv) capital spending of the government; and (v) disposable income in the event of additional tax efforts to overcome the prevailing fiscal strains.

In quantitative terms, the aggregation of the negative impact can be placed at Rs. 6,500-7,500 crore in nominal terms, of 0.2-0.3 per cent of real GDP.

Besides, Indian industry would be forced to absorb the cost escalation (inflationary) impact of (i) the likely hike in POL prices to cut back the mounting oil pool deficit; (ii) substantial increase in the insurance premia burden; (iii) additional bunker’s freight surcharge for shipping; (iv) some hardening of interest rates, and so on. The total burden of these would be Rs. 3,500-4,500 crore or about 0.2 per cent of the nominal GDP. India would also witness reduced supply of capital flows of at least $1-1.5 billion due to freezing of FIIs’ investments, cutback in remittances and postponing FDI and capital raising through GDRs, ADRs and ECBs by Indian corporates.

Admittedly, India’s external vulnerability is low, it remains predominantly a domestic economy, and its export dependency is 9 per cent of GDP. But, significantly, its exposure to the US is as much as 20 per cent in terms of goods exports and 60 per cent in software exports. Likewise, India’s exposure to the European Union countries (mostly NATO members and susceptible to terrorism) is fairly high at 25 per cent and 20 per cent respectively in terms of goods and software exports.

Considering the quantitative dimensions, the situation may prima facie not appear to be one of doom and gloom. Yet, it needs to be stressed that the proverbial resilience of the Indian economy cannot be taken for granted. For the past few years some crisis or the other has hit India, be it US sanctions after the Pokhran nuclear test or the Gujarat earthquake, Orissa floods, steep oil price hike, etc. Every external shock or natural calamity progressively weakens the economic fundamentals.

There are obviously two sides to the macroeconomic fundamentals. Apparently, there is no cause for anxiety on the supply side, except perhaps due to the poor progress of the infrastructure sector. In fact, the critical problem at this stage is how to deploy effectively surpluses of food, forex reserves, industrial capacities and liquidity in the banking system for the economy’s revival.

In contrast, the demand side (both consumption and investment) has been so severely battered the last few years that its adverse impact will be more long-lasting. The constant systemic or structural failures are ripping open demand weaknesses of the economy in practically every sphere. Thus, there is no depth either in the equity or debt markets. As a consequence, financial markets go through turmoil with the outbreak of every shocking event or news. So also the lack of depth in the consumption behaviour of Indian households, the myths of middle-class purchasing power and its sustainability are constantly being exposed. Once again, the aftermath of the US terrorist attack is going to affect demand drivers rather than the supply side of our economy.

Having said this, what is the way out for the economy to obviate the prospect of further deceleration of real GDP growth this year? Do we need more reforms and better implementation? Or, perhaps, vigorous pump-priming and liberal credit at softer interest rates? We were clueless earlier, and even more so now.

There is no shortage of discussions and documentation on what needs to be done. Many brilliant suggestions were made in the series of recent meeting with the Prime Minister, including the presentation of the McKinsey study. Therefore, there is hardly anything new that can be prescribed. Can the policy-makers see opportunity in the present adversity? Surely, economic fundamentals are operating at the sub-optimal level. Surpluses of supply essentially reflect the deficiencies of demand. Therefore, how to reverse the declining demand in the midst of the emerging crisis is a formidable challenge.

That the country’s fiscal health will be under acute stress is a foregone conclusion. Yet, in the short-term, thee is no other option but to reflate the economy through fiscal expansion. This world certainly entail, among other things, (i) fulfillment of all the budgetary commitments of Plan and capital spending; (ii) across-the-board or selective substantial reduction in excise (and/or any other form of excise rebate scheme for increased production); and, (iii) expeditious completion of disinvestment programme and earmarking proceeds exclusively from new infrastructure development initiatives. As a consequence, the incremental fiscal deficit (including now foreclosed deficit financing route will become inevitable and desirable.

These are extraordinary times and the most difficult phase of transition in the post-reforms period. In this context, the revival of business confidence and stock market sentiments cannot be secured through mere liberalisation of credit and softening of interest rates. In fact, this is no solution to break the bind of deepening demand deflation. The supply-side equation of macro situation warrants a Keynesian mode of fiscal expansion (including the printing of currency), howsoever unpalatable this may be to the fiscal purist. This short-term strategic response needs to be supported by the long-pending medium-term structural adjustment reforms that everybody is clamouring for. INAV

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