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EDITORIAL

Should it be risked?

Although one partner Bhim Singh says that disbanding SOG is not written in the Common Minimum Programme of the ruling coalition, it is written all over the PDP if not the rest of the coalition. The Congress too has given signals that tell of the same 'promise' though not in those very words. And the other factions from the valley are all for it. So winding up SOG is very much on the cards. You may not call it, 'disbanding', or 'winding up' or any other graphic phrases-remember the recall of army from the border alert was only a 'redeployment'. After all what is there in a name or in words, howso telling! As the Chief Minister said the other day, the time of words is past and it is all action now. In any case, the people have heard enough words and are craving for action now. So far so good. But the import and implication of action has to be gone into thoroughly. It would be a sorry Government that would have to find an alternative wing within half a year. And a sorrier one if it would be caught in the cleft of its own words and actions.

As it is there is a modicum of resentment......more


Minimum wages need
for better compliance

By Aarti

For the past 2 years Shantha (all names changed) a construction worker gets a paltry Rs 15 for every day her contractor provides her with work. Rajini, possessing knowledge of typewriting and shorthand but unable to .......more

Exporting without growth

By Bharat Jhunjhunwala

Surely, exports should be an important element of our growth strategy. They are indicators of our global competitiveness. It is also true that countries like China have increased their exports in .....more

In search of proliferation-resistant reactors

By Lalitha Vaidyanathan

World nuclear community has begun research in designing and developing ''proliferation resistant'' civilian power reactors which..........more


EDITORIAL

Should it be risked?

Although one partner Bhim Singh says that disbanding SOG is not written in the Common Minimum Programme of the ruling coalition, it is written all over the PDP if not the rest of the coalition. The Congress too has given signals that tell of the same 'promise' though not in those very words. And the other factions from the valley are all for it. So winding up SOG is very much on the cards. You may not call it, 'disbanding', or 'winding up' or any other graphic phrases-remember the recall of army from the border alert was only a 'redeployment'. After all what is there in a name or in words, howso telling! As the Chief Minister said the other day, the time of words is past and it is all action now. In any case, the people have heard enough words and are craving for action now. So far so good. But the import and implication of action has to be gone into thoroughly. It would be a sorry Government that would have to find an alternative wing within half a year. And a sorrier one if it would be caught in the cleft of its own words and actions.

As it is there is a modicum of resentment against the SOG in the valley, which also happens to be the Chief Minister's constituency. That resentment is against some highhanded means employed by them. Other misdemeanors have coloured the attitudes towards the Special Operations Group. But the fact remains that it is the real force that is active against the terrorists and has very concrete accomplishments to its credit. Whatever promises the poll time has extracted from the freewheeling politicians, terrorism is a reality of this State. This terrorism is all sponsored and is predating on the people and peace of this State. It is not the valley alone that is in the vice grip of the terrorists but much of Jammu too is pervaded by the marauders. While the terrorists showed no let up in the Jammu division, they laid low in the valley in the aftermath of the election results. They have begun their activities in a big way as soon as the new Government took oath. There are any number of instances where the terrorists are forcing whole villages to sport beards, to shout slogans and to show support for them in other ways. All that is to deaden the intelligence network the security force, especially the SOG, has put in place.

Accordingly, their main target here is this active branch of the police, which is giving them a real hard time. Observers believe that the lull that followed the announcement of the election results was utilized by the terrorists to consolidate their positions, to build their stocks and to dig in for a fiercer fight. As they say, when elephants rut grass is undeservedly crushed. Many people have suffered in the barrage between the terrorists and security. But these people have also built the peace, or whatever of it there is, with their lives. It was not fair to play up those feelings at the hustings, but it was done. It may be exaggeration to say that what little movement there is, is because of the SOG, but they have a larger than appreciated role in bringing terrorists under a semblance of control. Of course, every highhandedness of the force must be disallowed and disapproved. There are reports of missing youth in the valley that are said to have been picked up for questioning. Then the cases of custodial deaths have also been highlighted in rather a big way. Many of these may prove to be mere accusations just the way hundreds of other complaints against the security forces have turned out to be.

Most of those plaints have been found to have been got lodged at the behest- often under the force of guns-- of the terrorists to discredit the security forces and to build pressure against them. There, however are said to be some concrete cases of custodial deaths. These deaths, numbering less than a few dozen cases need to be accounted for and the culprits brought to book, because the security must not deviate from its dharma. Yet it must not be forgotten that for every so-called custodial death there are about a hundred deaths caused by the terrorists. They are youths, women often young, unmarried women, and children who were done to death by the terrorists. Many of them were killed in broad daylight or were lead out of their homes at gunpoints and shot within the hearing range of their friends and relatives. The total number of 'custodial deaths' over the past twelve years are said to be around 300, most of which may turn out to be only accusations. During this period, thirteen thousand men, women and youths were killed by the terrorists of whom the people in the valley are well aware. The people protested against each of these killings but they were silenced with threat of further killings.

In other cases the families just gave up the protest and plaint. The classical cases here are first the killing of Moulvi Farooq and the latest the assassination of Abdul Gani Lone. In between, the whole of thirteen thousand were killed, helpless, succor-less. Many more would have died had the special group not got active. Many more would still be killed, in broad daylight, within the hearing of their families yet would not be counted. Of course, that is not to justify any unnecessary deaths at the hands of the security forces including police. But it does show the depth of the situation, the devastation that has been caused, the homes and families that have been ravaged by the terrorists. It also shows, what risks are involved, if a lightness of approach comes to visit the security angles. For, it is the common people, the helpless succor-less people who suffer there. The leaders get protections and covers, and may not visit the areas at all if going gets too tough. The unprotected people are easy pawns in the games of politics, but should not be. Nor does this State deserve flagrant experimentation of devious theories. Administration and protection of people is a grave business. It is a hard duty that must be taken very seriously.

Minimum wages need for better compliance

By Aarti

For the past 2 years Shantha (all names changed) a construction worker gets a paltry Rs 15 for every day her contractor provides her with work. Rajini, possessing knowledge of typewriting and shorthand but unable to secure a regular job is employed through a contractor in a private firm where she is paid at the rate of Rs 50 per day. These above are not solitary cases but harsh realities of exploitation the working class seem to undergo despite the existence of a plethora of laws meant for their protection and welfare.

According to NSSO 55th Round estimates 397 million as employed (out of a total population of 1004.10 million) in 1999-2000 against 374 million employed (out of a total population of 895.05 million) in 1993-94. Notably, there has been a reduction in regular employment and self-employed which is substantiated by the Census 2001 that shows that the average annual rate of growth of marginal workers at 12.1 per cent is much higher than the main workers pegged at 0.08 per cent during the period 1991-2001. Working women, according to reports constitute 14.8 per cent of the total workforce in the organised sector and hold 7.5 per cent jobs in the Central Government but they form a sizeable majority in the unorganized sector.

The decision of the Union Government to raise the minimum floor level wage by five rupees, that is from Rs 45 to Rs 50 per day, at the national level effective1st September this year would benefit hundreds of thousands of wage earners in 45 and 1232 scheduled employments in the Central and State sphere respectively. But what is important is that it is effectively implemented.

The concept of fixing a national floor level minimum wage was evolved following the recommendations of the National Commission on Rural Labour (1991). Initially the national floor level minimum wage was fixed at Rs 35 in 1996 that was increased to Rs 40 in 1998 and subsequently to Rs 45 in 1999.

The groundwork for the enactment of a legislation aimed at providing minimum wages to the working class is attributed to the initiatives of K.G.R.Choudhary in 1920 who mooted for the setting up of a Board for determination of minimum wages in each industry. In 1928, the International Labour Conference adopted the resolution (Convention No.26 and Recommendation No. 30) pertaining to wage fixing machinery in trades or parts of trades. Consequent to the Indian Labour Conference considering a draft bill in 1945 and the Standing Labour Committee recommending in 1946 for the enactment of a separate legislation for the unorganised sector including working hours, minimum wages and paid holidays, the Minimum Wages Bill was introduced in the Central Legislative Assembly on April 11, 1946 which provided for fixation of minimum wages in certain employments. Passed in 1946 and enforced effective March 15, 1948, the Minimum Wages Act is one of earliest labour legislations enacted in 1948 to secure the welfare of workmen and prevent exploitation of labour. Under the Act, the appropriate (Central/State) Government is required to fix the minimum wage in respect of only those scheduled employments where the number of employees is 1000 or more. These employments include agricultural and mining activities, construction, maintenance of roads, runways and buildings, stone breaking/crushing, mining activities, security services etc. Following the recommendations of the Indian Labour Conference of 1957, the norms considered to fix the minimum wage includes three consumption units per earner, a minimum food requirement of 2700 calories per average adult, cloth requirement of 72 yards per annum per family, rent corresponding to the minimum area provided for under the Government’s Industrial Housing Scheme and fuel, lighting apart from other miscellaneous expenditure items which is to constitute 20 per cent of the total minimum wage. The Supreme Court came to the aid of workers drawing minimum wages and the landmark 1982 judgment popularly known as the Asiad Workers case (Peoples’ Union for Democratic Rights Vs. Union of India, AIR 1982 SC 1473) has held a person who provides service to another for less than the minimum wage, renders forced service. "Article 23 of the Constitution strikes at forced labour in whatever form it may manifest itself, because it is violative of human dignity and is contrary to basic human values... Where a person provides labour or service to another for a remuneration which is less than the minimum wage, the labour or service provided by him clearly falls within the scope and ambit of ‘forced labour’ under Article 23. The word ‘force’ must therefore be construed to include not only physical or economic circumstances which leaves no choice of alternatives to a person in want and compels him to provide labour or service, even though the remuneration received for it is less than the minimum wage. Traffic in human beings and begar and other similar forms of forced labour are prohibited and any contraventions of this provision shall be an offence punishable in accordance with the law".

The Apex Court further noted that "the rule of law does not mean that the protection of the law must be available only to a fortunate few or that the law should be allowed to be prostituted by the vested interests for protecting and upholding the status quo under the guise of enforcement of their civil and political rights. The poor too have civil and political rights and rule of law is meant for them also, though today it exists only on paper and not in reality. If the sugar barons and the alcohol kings have the fundamental right to carry on their business and to fatten their purses by exploiting the consuming public, have the chamars belonging to the lowest strata of society no fundamental right to earn an honest living through their sweat and toil?"

To protect the minimum wages against inflation, as recommended by the Labour Ministers’ Conference of 1988, it has been linked to rise in the Consumer Price Index (CPI). The Variable Dearness Allowance, (VDA) as a component of minimum wage (revised bi-annually April and October) is in existence in all the Central Government and notified scheduled employments in 22 States/Union Territories. Even as the minimum wages may differ from every State and employment, it is essentially meant to ensure the physical needs of the worker, his family’s subsistence including their educational and medical requirements. The minimum wages for unskilled workers in the Central sphere varies from Rs. 54.27 to Rs. 129.93 (including VDA) and for agricultural workers from Rs.86.63 to Rs 129.93 per day. In case of States/UTs, it varies from Rs.19.25 to Rs.165.78 (including VDA) and from Rs.19.25 to Rs 102 for agricultural workers.

Though the reported decision of the Government to simplify the Minimum Wages Act is timely, with only 45 categories in the Central sphere figuring in the list of Scheduled Employments against 1,232 in the State, there has been demands from several quarters for bringing more employments within the purview of the Minimum Wages Act by including them in the list of Scheduled Employments. While the proposal to offer incentives for voluntary compliance and slap stringent penalties for non-compliance has to be supplemented with religious efforts of both the Central and State Governments to ensure the implementation of the law, special awareness campaigns across the country among workers and employers regarding their rights and obligations as envisaged in the Minimum Wages Act can go a long way to achieve the desired results.

With reports of a vast majority of the workers in the unorganised sector not getting the stipulated minimum wages and the employment status of many labourers seldom regularised despite working for many years it is a appalling that such individuals fall easy prey for being casually hired and fired. What is required is the creation of awareness that if an individual is being paid less than the statutory minimum wages, she/he can get justice by moving the High Court or the Supreme Court (as it a violation of Fundamental Right under Article 23) and/or approaching the Labour Court of the area.

Exporting without growth

By Bharat Jhunjhunwala

Surely, exports should be an important element of our growth strategy. They are indicators of our global competitiveness. It is also true that countries like China have increased their exports in a big way. China's share of world trade increased from 1.6% to 6.1% in the last fifteen years. But has it led to growth?

There are strong reasons to doubt the same. According to the World Development Report 2003, China's income in 2001 was $1159 Billion. In 1981 it was $264 Billion. A simple calculation based on these two figures shows that the average rate of growth in these years was only 7.7%; and not 10%-plus as claimed. There are many indications that China's growth has been concentrated in the Eastern coastal areas. The vast interior continues to be enmeshed in poverty. Some reports indicate that malnutrition in rural areas is increasing. In our own country we had princely grandeur along with poverty of the masses. China's situation appears to be not much different.

The fact is that the FDI-led export strategy followed by China need not create incomes. MNCs can invest, used cheap domestic labour and export the product. But the linkage with the domestic economy may be little. Such FDI can create islands where labour comes and works. The profits can be retained by the MNCs and repatriated to their home countries. The host countries merely become suppliers of cheap labour. And wages never beget growth. High value of exports does not mean high incomes. There is a wind power plant near Phalodi in Jodhpur. One can see the windmill blades whirling day and night. But no one in the area seems to know much about it. The machines have come from the city. The operators have come from the city. They live in quarters that have been built in the compound. The power is transmitted to the city. There is no interaction with the local people except supply of a few unskilled workers for menial jobs. Such plants can be established rapidly. The machinery is well tested at other locations. Only some pillars have to be constructed and the power can be generated right away. Such 'industrialization' may be good for the cities but has little value for the people of the area.

The production of wood furniture, on the other hand, has many linkages. The farmers supply wood. Local carpenter are employed. Lathes and drill machines are purchased from local suppliers. The purchasers come and stay in local hotels. Such production takes much time to establish. Local suppliers of wood have to be trained to provide the right quality. Carpenters have to be trained to handle modern machines and read the designs. Advertisements have to be placed to attract purchasers. The value of wood furniture that is produced may be less; it has low investment and technology and is slow in starting yet it is highly beneficial to the local people. Such industry has strong linkages with the local economy. The wind power project has large investment and high technology but does not lead to the development of the area. It should be realized that 'growth' requires investment, which comes, in the main, from profits, not wages. The share of wages in production has been declining anyway. Thus, if an MNC invests and employs cheap labour the net payment to the domestic economy is small though the value of exports is large. That does not lead to growth.

The high-tech nature of the exports does not appear to help much either. In the World Investment Report 2002, UNCTAD accepts that "specialization in labour-intensive segments, even of high-technology exports, may in some ways be undesirable as it may provide meager spillovers to the local economy." UNCTAD warns that depending on MNCs faces the danger that "local value-added may not be increased and affiliates may not embed themselves in the local economy by building linkages to the domestic entrepreneurial community."

UNCTAD points out that there is an additional danger of MNCs suddenly relocating their production due to factors that are beyond the control of the host economy such as market access due to preferential trade agreements or incentives offered by other countries.

UNCTAD has mentioned six countries as 'winner countries', which have successfully followed the FDI-led approach. These countries have been able to attract large amounts of export-oriented FDI. But has it resulted in high growth rates? The average annual growth rate in the nineties of four of six of these countries has actually been lower than that of India. These are Hungary, Mexico, Costa Rica and Korea. The fifth country Ireland is culturally and geographically close to the Industrial countries. It cannot be compared to other developing countries. China is the sixth. Its growth rates are doubtful. The 'winners' have won in exports but that has not given them incomes.

Our approach has been slower but domestic entrepreneurs have led it. The linkages of our exports with the rest of the economy are deep. We have exported more wood furniture and less high-tech products. Truly, our rate of growth of exports has been slow. Our share of world trade has barely increased from 0.8% to 1.0% in the last fifteen years. But even this small increase has been accompanied with a reasonably high rate of growth. China has nearly double of our savings rate, six times of our exports and seven times of the FDI that we have got, yet the growth rate is only marginally higher than ours.

The fact that the share of MNCs in the exports of these countries is large only means that the domestic linkages are weak. According to UNCTAD, the share of exports by foreign affiliates in technology-intensive industries in China was 81% in 2000. Costa Rica's top 20 foreign affiliates accounted for one-half of the country's exports. MNCs generated four-fifths of Hungary's exports. 90% of Kenya's flower production, mostly for exports, is controlled by foreign affiliates. Such preponderance of FDI has led to a big jump in exports while the host economies derive few benefits. Such FDI has created islands that are isolated from the rest of the economy. The profits are controlled and reinvested by the MNCs according to their own global compulsions. The host countries become mere suppliers of cheap labour with little income accruing to them and little growth having taken place. The FDI-led export strategy has not delivered.

The FDI-led export strategy should not distract us. We should instead bolster our domestic companies. FDI accounts for only 19% of India's software exports. India has also increased its presence in services such as call centers with our own entrepreneurship. Our strength lies in the fact that the profits made by our companies are largely reinvested within the country. The raw materials are procured from within the country. The skilled workers are Indians. This will lead to long-term growth. Therefore, we should continue on our slow but steady strategy of exports that are made on our own strengths even if it takes longer to conquer the world.

In search of proliferation-resistant reactors

By Lalitha Vaidyanathan

World nuclear community has begun research in designing and developing ''proliferation resistant'' civilian power reactors which will have technological features that would reduce access to or the production of weapon-usable nuclear materials.

Scientists and engineers at several nuclear research centres around the world are looking for the characteristics of innovative power reactors and fuel cycles with respect to prevention of proliferation.

Political, legal and commercial frameworks under which such innovative reactors and fuel cycles might be introduced and made available are also being worked out simultaneously, according to nuclear experts.

In order to systematically promote such innovations, the International Atomic Energy Agency had floated International Project on Innovative Nuclear Reactors and Fuel Cycles (INPRO) two years back and several designs have already come up for scrutiny of the nuclear experts including India's Advanced Heavy Water Reactor (AHWR).

AHWR's detailed project report (DPR) will be circulated for peer review for the next couple of years, Atomic Energy Commission Chairman, Dr Anil Kakodkar said.

Additional endorsement came at a UN General Assembly resolution in December 2001, that again emphasised, ''the unique role the agency can play in developing user requirements and in addressing safeguards, safety and environmental questions for innovative reactors and their fuel cycles.''

The resolution also stressed ''the need for international collaboration in the development of such innovative nuclear technology.''

As on August 2002, countries or entities that became members of INPRO were Argentina, Brazil, India, Canada, China, Germany, Republic of Korea, Russian Federation (CIS), Spain, Switzerland, the Netherlands, Turkey and the European Union, according to IAEA experts.

About 16 cost-free experts have been dominated by their respective governments or international organisations, they said.

The characteristic features of the innovative reactors include both intrinsic and extrinsic barriers, Juergen Kupitz, Head of Nuclear Technology Development Division of the International Atomic Energy Agency (IAEA), said.

As part of intrinsic barrier, the nuclear community was interested in reactors with longer core life of fuel and higher burn-up in the reactors which would facilitate decreased frequency of refuelling procedure, Kupitz, who is a also a proponent of nuclear energy for the developing countries.

Currently, the refuelling is done once a year in most of the reactors around the globe and ''we are aiming at five to 20 year gap for refuelling to reduce the possible proliferation. For this, proposals for new innovations in reactor technology are invited from all over the world,'' he said.

''However, inspection of plants in those countries which have signed non-proliferation treaty would continue even after such long refuelling period is achieved,'' he said.

The extrinsic barrier include maintaining safeguard, NPT and safety, he added.

Talking about IAEA's international project on Innovative Nuclear Reactors and Fuel Cycles, he said, '' we have invited all interested member countries to combine their efforts in considering the issues of the fuel cycle, in particular by examining proliferation -resistant technology''.

Besides IAEA, 'Generation IV', a nuclear NGO in US, has so far selected six such new innovations including a high temperature reactor, a gas-cooled fast reactor, and a molten salt reactor, he added.

Kupitz said, the objective of INPRO was to support the safe, sustainable, economic and proliferation resistant use of nuclear technology to meet the global energy need of the 21st century.

The activities of INPRO are being carried out in two phases in phase one selection of criteria, developmental methodologies, guidelines for the comparison of different concepts and approaches.

Phase two will include examination of innovative nuclear energy technologies made available by the member states against the criteria and requirements.

''The examination will be coordinated by the Agency and performed with participation of Member States on the basis of the user requirements and methodologies established in phase one,'' Kupitz said.

Y S Bassurin of IAEA said, the agency had convened a workshop last year on 'user requirements for non-proliferation' where requirements of proliferation resistant reactors were chalked out with 13 member countries, governmental and non-governmental organisations.

''The IAEA and member states, through verification arrangements, current IAEA safeguard practices, methods and procedures, could jointly provide credible assurance that such innovation and the associated nuclear materials and fuel cycle remain committed to peaceful use'', Bassurin added.

Indian programme related to innovative nuclear reactor technology is mainly the R and D road map for thorium utilisation and closed fuel cycle based third stage Indian nuclear programme, according to R K Sinha, head Reactor Design and Development Group of Bhabha Atomic Research Centre.

He informed the experts at the recently held symposium of the Indian Nuclear Society that the three major deliverables of this technology road map are -Advanced Heavy Water Reactor (AHWR), Compact High Temperature Reactor (CHTR) and Accelerator Driven System (ADS).

For each of these deliverables, several enabling technologies are required to be developed by BARC and most of these technologies are candidates for international cooperative research and development, Sinha said.

There are many more designs being developed at BARC and are at different stages of finalisation, BARC sources said.

PTI Feature

 
 



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