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One pertinent fallout of the recent elections to four State assemblies is the visible eclipse of the so-called Third Front. After horrible experience of United Front some of its constituents have been striving for its revival with change of nomenclature as Third Front. In essence both these are synonymous. The only difference is that earlier dominant partner of the UF was Janata Dal which..... more Army Chief Gen Malik has done yeoman service to the nation by seeking massive reforms in the existing defence structure. There is enough of proof to indicate top heavy structure with least accountability which continues to pose serious problems for all the three services. In support thereof he quotes that most world defence forces have a ratio of 70 to 30 for maintenance and modernisation. Both have to go side by side to keep the troops in.....more |
Insurgency
freezes Assam economy By: Amar Krishna Paul Recent trends in the economic development of
Assam have triggered a lively debate among the
intelligentsia. ......more It is indeed a fact to be
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EDITORIAL One pertinent fallout of the recent elections to four State assemblies is the visible eclipse of the so-called Third Front. After horrible experience of United Front some of its constituents have been striving for its revival with change of nomenclature as Third Front. In essence both these are synonymous. The only difference is that earlier dominant partner of the UF was Janata Dal which stands reduced to just five odd MPs after the 12th Lok Sabha elections. This time round two parallel Centres have been busy taking the lead role. The first one is led by the CPI (M) or to what one likes to call as combination of Leftist Parties. To ensure that Leftists do not reach commanding heights in the Third Front yet in the embryo stage, RJD of Laloo Yadav together with Samajwadi Party of Mulayam Singh Yadav hurriedly entered into wedlock to give birth to Rashtriya Loktantrik Morcha. It obviously had twin aims. First, to be the dominant partner in the proposed third front. Second, to make its noises felt more aggressively in other parts of the country besides UP and Bihar as also in Lok Sabha. The other likely constituents of Third Front that have been approached are DMK, IUML and whatever is left of the JD. The objective of the Third Front as enunciated by its strongest advocate Surjeet Singh is to offer better choice to the teeming millions of this country as both Congress and BJP have failed to deliver anything. There have also been attempts to woo Telugu Desam in its fold as also Tamil Manila Congress. By far the greatest motivation and unstated objective of the proposed Third Front was to piggyride Congress Party by offering it undefined support, sometime selective, sometime total and sometime conditional so that it could prove for all time that BJP is worst enemy. So is Congress but magnitude is slightly less. The election results clearly indicate that all existing and prospective protagonists of Third Front have received massive drubbing at the husting with near total rejection by the electorate. Their forays into Rajasthan, Delhi and Madhya Pradesh prove their non-entity. So much so that even in the SP dominated constituency of Agra, Samajwadi candidate lost his security deposit while BJP won the seat with Congress the runner-up. This indicates that Muslim voters have left Samajwadi Party despite all the accolades offered by Mulayam as being the only messiah of Muslims in this country. This also shows loss of Backward Classes vote for Samajwadi Party which appears to have been shared by the BJP and Congress. In Rajasthan SP, RJD, CPI, CPM are total wash out. Same happens to be true in Delhi and Madhya Pradesh. It is either Congress or the BJP which have received voters support, others mostly losing their deposits. This is the surest and impressive rejection of all those who conceived Third Front as the viable alternative. The voters definitely want two-party system for better delivery and the hotch-potch amalgams that have played havoc with the Governance. Virtual wash-out of Third Front serves the interests of both Sonia and Vajpayee. Sonia is right on course and one must congratulate her advisors not to fall in the trap of Mulayam, Laloo, Surjeet or even Jayalalitha. They are sure that if 18 party amalgam could not rule properly, there is simply no scope for 22 party combination doing any better. In fact that happens to be the arithmetic as number game can give simple majority to Congress only if it ropes in 22 parties. It is quite hateful thought to be browbeatan and humiliated by miniscules. That explains why Sonia now prefers mid-term poll rather than fall back on uncertains and unreliables to form alternative Government. That proposition appears to be out of her mind. As regards mid-term poll, Congress is not yet ready for it for three reasons. First, it is not a Congress wave but only a vote against BJP for non-performance. Second, the wave may not last even for six months and by the time mid-term poll is held there could be changes in the wave. Third, largest State of UP and Bihar which together send 139 MPs to Lok Sabha are nowhere on Congress wavelength yet. A lot of work has to be done to regain lost ground in these two States. Unless that happens exposing the party to face mid-term poll could be suicidal. Indications are that Sonia would like to weaken those who dislodged Congress from these States namely SP and RJD. This stands duly manifested from the refusal of Congress MPs when RLM MPs made loud noises seeking Vajpayee's resignation. Congress did not join them and instead advised them to sit down and let the proceedings go on smoothly. The Congress mind is quite made up. It would like to capture Delhi throne on its own and not on the crutches of so-called amalgams of the yet unformed Third Front. Until that time Sonia likes BJP to go on governing and in the process become more unacceptable to the people unless there is proof enough of better governance. Mulayam now appears to be more angry and revengeful mood against Congress than ouster of BJP from power. He shall got to be working overtime to retain its existing base amongst minorities and BCs in UP Congress however is quite amenable to give more latitude to BSP rather than allow any room to SP, RJD, CPI, CPM, JD or any other miniscules propping up Third Front. With that BJP Government is safe for another year at the minimum. Army Chief Gen Malik has done yeoman service to the nation by seeking massive reforms in the existing defence structure. There is enough of proof to indicate top heavy structure with least accountability which continues to pose serious problems for all the three services. In support thereof he quotes that most world defence forces have a ratio of 70 to 30 for maintenance and modernisation. Both have to go side by side to keep the troops in fine mettle and well greased weapons that have accurate and better punch. It is regrettable and indeed quite senseless that the above ration in India happens to be only 88 to 12. That means most of the allocated funds are spent on maintaining almost obsolete equipment while modernisation takes the back seat. This is quite ridiculous position when priorities are not understood by those who thrive on 'red tapism' and derive sadistic pleasure out of it. He cites an example when he preferred to surrender the allocated amount rather than spend it on non-priority and least required items as dictated by the 'structural Heavy-weights' in the Defence Ministry. Another point touched by him relates to negative budgeting rather than positive one which just neutralised the inflation but otherwise did not add anything to move forward in tune with times as regards weapon systems and other inputs for top-notch armed forces. The theme has been: this much and no more. For progressive armed forces the theme ought to be: as much as nation's security requires. The third point relates to stretching the army to get entangled in internal security jobs for long periods. This is counter-productive for any army. Such peacetime deployment affects morale, budgetary depletion, alienation of local people, lack of faith in other Central forces and State police, adverse image abroad and many other evils. General Malik informs that Defence Minister has promised structural reforms. One hopes that there would be no delay in such restructuring. |
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Insurgency freezes Assam economy By: Amar Krishna Paul Recent trends in the economic development of Assam have triggered a lively debate among the intelligentsia. Some argue the State has been unable to sustain a rate of rapid growth as the fruits of long-term policies are being eaten up by opportunities and the needy are being deprived of them. But others dismiss this as sheer pessimism. A stable law and order situation is vital for fostering both secular change and gradual growth, also for tapping the state's natural resources and endowments. But Assam lacks adequate entrepreneur-friendly atmosphere in the prevalence of terrorism. Violence is chasing investors and businessmen away from Assam. The insurgent groups have shown a speedier mushrooming growth than that of industrialisation of the State economy. The union home ministry recently published a report 'Bleeding Assam' (The Role of ULFA) in an apparent bid to mobilise public opinion against the United Liberation Front of Assam (ULFA), giving a detailed account of the activities of the banned outfit. Says the report, "Have people thrived where a militant section has taken to the gun? Apart from bringing death and destruction to the area, do such movements achieve anything? General climate of uncertainity in the region. The economy suffers. Investors become hesitant to plough back any money into the area; transporters stop plying in the region; economic activity dwindles and people stop stirring out after sunset.'' In a sense, the report also States tha the activities of ULFA were primarily responsible for the economic backwardness of the State as in this climate of violence the investors are scared of investing their money in the state and the existing industries are struggling to survive because of the extortions, killings, etc. The tea industry is also facing crisis as senior officials of the industry are abducted or brutally killed for ransom. A major chunk of the funds earmarked for development works also go to the coffers of the rebels, the report says. Similar is the plight of the banks and the oil industry. The NGOs committed to the development of the State were also not spared by the militants and the main reason for the killing of the AVARD-NE general secretary Sanjoy Ghosh was money and not any ideological difference. In 1995, 222 violent incidents, including 204 killings, were reported while in 1998, 492 incidents, including 366 deaths, have been recorded so far. The Government had failed to contain ethnic clashes in Kokrajhar district which were continuing for the past two and a half years despite the visit of a central team. It is, indeed, difficult to bring back misguided youths into the mainstream. But they should be made to realise that the State economy is beign adversely affected by their chosen field of activity. An able administration and a stable political establishment are preconditions for the progress of any economy. History shows us that the growth of Britain, France, Gemany, and strong administration since the 19th century. Nationally, Maharashtra, Tamil Nadu, Andhra Pradesh Orissa, Rasjathan, Delhi and West Bengal could maintain their efficient administrative will and political stability in the post-independence era. Such political stability stimulated entrepreneurs, who boosted economic development in conjunction with the necessary policy prescriptions, made by the Government over the last five decades or so. Even today Assam is considered a backward State like Bihar in the economic sense despite its huge reserves of natural resources. It produces around 50 per cent tea products and petro-products of the country. However, soaring pressure of extremism on the State stalls the developmental deeds in the infrastructure sector such as the development of energy sector, development of transport and communication systems, improvement of health and medicare, expansion of education and literacy and empowerment of managerial skills that have remained a dream beyond the reach of Assam. Although the State has a vast potential for power generation, it has lagged behind the rest of the country in generation and consumption of power, mainly because of the dearth of investment in the energy sector following the tense insurgency activities here. It has enough water resources for hydel power projects and enough natural gas, coal and petroleum for thermal power stations as well. Large amounts of natural resources, which can be utilised for generating power, are wasted regularly in the State. For example, Assam burns 235 lakh cubic metres of natural gas, worth about Rs. 40 lakh at Tengakhat daily even as Reliance Industries have already shown keen interest in investing Rs. 4,000 crore on the Assam gas cracker project. There is a vast potential to set up hydro-power stations across the Brahmaputra and other tributaries of Assam. Unfortunately, the State has no big hydel power station except three micro stations. Pointing out the causes of backwardness of power sector of the entire North East India Dr. M.R. Srinivasan a member of planning commission (energy sector) after visting the "seven sister States'' last year opined that north east power sector was plagued by various problems like lack of power infrastructure and the difference terrain which increase the production cost of power. According to him, militancy, ethnic problems, overall law and order situation have also affected the functioning of power sector organisations like NEEPCO and Power Grid in Assam. On the front of road transport and communication, the State has made little development since the inception of insurgency activities. Assam tea industries are also fighting for survival. The tea barons have virtually ruled their estates through remote control. Ever since Surendra Paul, owner of Assam Frontier Company and brother of Lord Swaraj Paul, was gunned down, very few have has the guts to visit their tea gardens. Many economic analysts feel that the tea production is mounting in Assam and it is largely due to the local work force. Nonetheless, getting good managerial talent is quite difficult as no one is willing to come to Assam. Right now the families of executives working here live in a shadow of constant fear. Railway tracks are a soft target of the ultras in Assam, especially in the Bodoland Autonomous Council areas. Destruction of bridges both by ravaging floods and insurgent units damages the road transport system carrying food articles to the State. Owing to continuous threat from militants, many public sector units have stopped their projects in north east. For example, the Oil and Natural Gas Commission Ltd suspended its operations in Nagaland in April, 1994. Till now, it has not been able to resume work there in the wake of threats from ultra units. Moreover, it has lost two rigs there. The Assam Government continues to reel under severe financial crunch. It has been running into huge over-draft of more than Rs. 200 crore every month during the foregoing fiscal year 1997-98 leading to frequent suspension of all Governmental payments by the Reserve Bank of India. The outstanding debt burden of the State as on April 1, 1997 was Rs. 5712 crore, out of which loan from the Central Government was Rs. 3,998 crore, constituting 70 percent of the total. The per capita debt burden works to Rs. 2,223. As per data available, the outstanding debt burden as on April 1, 1998 is estimated at Rs. 6,131 crore and per capita debt burden works out to Rs. 2,340 this year. Assam has planned to discharge debt servicing liability of Rs. 885 crore, out of which Rs. 632 crore is towards payment of interest. The total repayment of principal and interest to the Central Government during the current year is Rs. 610 crore. During the current year, the Centre reimbursed an amount of Rs. 131 crore out of the State's claim of Rs. 540 crore for the period April 1,1990, March 1, 1997 against security related expenditures (spent in fighting insurgency in Assam). More recently, the State has sought Rs. 1,000 crore from the Centre to take countervailing measures for people who have suffered during the floods and to cover up the losses. In spite of grim economic situation following insurgency in Assam, few optimists even now claim there is a room to promote the growth process of the State on many fronts. First and the foremost among them being development of agriculture, which is the mainstay of Assam. The large number of unemployed youth should employ themselves in cultivating unused arable land so as to promote productivity as well as raise output. This should work, despite the shortage of working capital in Assam. There is a paucity of literate cultivators and the entry of at least some of the about 1.5 million educated unemployed youths should help modernise the agrarian sector. Investment in infrastructure, including investment in transport and communication, power and energy; generation of savings, capital formation, free entry of foreign direct investment etc. are essential to boost Assam's economy.PTI Feature |
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