Daily Excelsior... Editorial

EDITORIAL

Power bonanza

Terrorist beatings

Periscope on Pakistan
Economic stability contingent on us diktat

If, as has been made out, President General Pervez Musharraf’s tryst with George Bush at ......more

A race abandoned

By Samir Sen

The people of Indian origin did not find even a passing mention in Alan Paton’s first.....more

Frozen employment

By H C Katoch

Both the Central and our State Govt in unison put a ban on filling up the vacant posts ....more

Stop foreign aid

By Bharat Jhunjhunwala

The World Bank has put a draft of the World Development Report 2004 on its website for ....more

EDITORIAL

Power bonanza

Generation and supply of electricity in the state is poised to improve vastly with finalization of the 1000 Crore loan for Bhagliar project. With the 1400 Crore already spent on the project and the new grant, two-thirds of the total project-cost has been accounted for. That should expedite the work so that the project is completed on schedule without any overruns. Keeping in view the fact that the State has been hard put to arrange finances, it just cannot afford any more cost overruns. As for the power situation in the State, it has an even greater need for the project to be completed as soon as possible. Yet that is a lot of wishes bundled together. This State has a particularly unenviable record with respect to the power projects it has undertaken with great fanfare and promise, but the result has only been cost overruns without the coveted currents flowing out. Thus stakna project in Leh ran from five to fifty Crore without much light. Sewa project in Bani is struggling for years guzzling funds without fulfilling the great expectations.

It may be said that the mindsets then were more towards spending monies than getting returns on the investments. Many of the national projects too lagged behind schedule and ran huge cost overruns. But that working is now a thing of the past. The funds have to be found, they have to be invested properly and profitably, if the Government intends to fulfill its promise of bettering the electricity scenario. One hopes that there is good appreciation of those imperatives. Indeed, the Asia Bank financing of the Bhagliar project fell due to the conditions attached to it. The bank consortium that has been persuaded to bail the project out, has given easier terms both of interest and efficiency. This is also a new initiative in the nation. Its success would goad other states to arrange for finances for their projects within the country, while a failure to properly use the funds and produce results would have an unhealthy influence over the future of similar projects elsewhere. Thus a national responsibility of sorts devolves on the state to get the project completed in time. But more than that there are state’s own needs crying for speedy completion.

Along side has come another bonanza for the state in the shape of a 400 Crore grant from the Central Government to improve the power distribution and create infrastructure for the supply infrastructure in the State. The Government deserves kudos for having worked hard to mitigate the power woes of the state. But the real test would come in the spending of funds and creating of necessary facilities so that it is really the people of the State who benefit from these huge grants and not the traditional pocket liners, who take all grants home. This would need full scope monitoring of progress of the work and ensuring that the corruption does not dine off these hard bargained funds. As it is the Government would have to repay the bank loan also pay interest on it. Let not these projects be lost in healing touch naukaries and salaries. Nor, the contractors-official-politician nexuses.

Terrorist beatings

The recent event of the local militants in the Kot Balwal jail beating the foreign mercenaries lodged there blue is not the first incident of its kind. Indeed, there have been many occasions when the local recruits rose against the mercenaries. The issue at Kot Balwal was how the foreigners had brought about the destruction of a prosperous state. At other times it has been the desecration of the honor, maltreating the local recruits and other indignities piled on them. It was a realization of these deviations that forced the young men of Ikhwan and muslimoon to rebel against their masters. They were denigrated as renegades. Then the very ideologue Majid Dar rose against it. He was turned out of the favor and finally killed. His adherents have now left the terrorist ranks and announced to form a political party. Other fights may not have produced as diametrical results but the realization that they have been used , abused and misused by Pakistan for their own ends is definitely growing sharper among the local recruits in the terrorists’ ranks.

Yet it is only when they are jailed or otherwise free of their mercenary controllers that the realizations grow. Thus Majid Dar’s mentor staying put in PoK is going chummy with his masters because he has neither to answer the local people nor gets to see the depredations his bloody emissaries visit upon the people here. When a particularly heinous crime comes to light, it is blamed upon the ‘Indian army’ and they believe it to be so-sometimes out of compulsion, but often out of genuine trust in their masters. Meanwhile the depredations keep visiting upon the people; old and infants, infirm and women, innocent and morally upright people continue getting maimed and killed. Yet it is on the basis of these silenced, disgruntled local recruits that a Kasauri tells the international world that they can have no control over a ‘people fighting for their rights’. Now, what natural right does a Pakistani have to rape, rapine and pervert Kashmir which the Pak Government is reluctant to curb? What right do they have to lord it over the local recruits, to subdue them and keep them in check and to kill them when they can bear it no longer and want to get out? Certainly, none.

Periscope on Pakistan
Economic stability contingent on us diktat

If, as has been made out, President General Pervez Musharraf’s tryst with George Bush at Camp David was such a thundering success why is there an element of panic in Islamabad that the promised aid is amenable to disruption? Already loud cries are heard that India is lobbying Capitol Hill to ensure that the conditionalities, particularly the one on eradication of terrorism, are applied rigorously. Clearly there is an underlying feeling that Musharraf came home only with pies in the sky.

Disputing the Pakistan authorities' claims at economic stability (because of unprecedented growth in foreign exchange reserves over the last year and half), Shahid Kardar, in an article in DAILY TIMES observes: "It is not quite clear if the present state of affairs is sustainable, particularly with respect to the link between the high exchange rate and the low domestic rates of interest, especially if a significant proportion of the build up in reserves has resulted from one-time grants from the USA and its allies (and) loans from World Bank, ADB and IMF".

"Since most of the reserves-related indicators are better than the norms proposed by donors or monitored by financial analysts at credit rating agencies, the government argues that we are finally able to address the issue of the traditional vulnerability an the external account that has plagued Pakistan's economy since its birth. And that the capacity of the economy to face and ride out external shocks has been enhanced on a more durable basis. The growth in reserves, the rescheduling of our $12.5 billion bilateral debt by the Paris Club, the resulting decline in the external debt-to-GDP ratio and the increase in exports beyond $10 billion are developments that have raised expectations all round about.

"However, the need to maintain a high level of reserves for such reasons, and other uncertainties involves an opportunity cost. Holding large reserves costs the government since the return on such assets is much lower than the opportunity cost in terms of the yield/return on real investments in the economy. This investment in low-yielding foreign exchange reserves is also affecting State Bank’s dividends to the Government and thereby the size of the government's budget deficit, considering Rs 26 billion had been estimated as a potential receipt from State Bank in the Federal Budget for the current year: Since the shortfall in the dividend from State Bank will be at least Rs. 20 billion, the Government has been farced to cover up this loss from an additional tax on petrol and through revisions in the tariffs of electricity and gas so as to remain within the budget deficit target agreed with IMF.

Dr Ayesha Siddiqa Agha in an article in FRIDAY TIMES argues that "sustained economic progress is not possible under a military-authoritarian regime in Pakistan because military personnel directly involved in socio-economic management lack necessary expertise in the area.

"This necessarily means that Pakistan, like other developing countries, needs an authoritarian/ military government to put the economy back on track? After all, unlike previous Governments, Musharraf’s regime can boast about increasing foreign exchange reserves and overall enhancement of cash inflows into the country. Furthermore, it is for the first time in so many years that exports have crossed the $10 billion mark. With such results wouldn't it be better to let the military-led set-up to continue and hope, as experts like Jose Maria Maravall aver, to wait for economic development to pave the way for democracy?

"Maravall's argument is that economic changes often lead to improving the quality of democracy because of the presence and influence of market forces. Once economic development is initiated as a primary focus, it puts in place a system and unleashes market forces that demand greater democracy, thus, having a long-term impact on the political environment of a state."

FRIDAY TIMES adds however: "Even when they (the military) hire experts, the situation often leads to economic planning dominated by an elitist group. The group is perceived to serve the interests of elite and generates greater disenchantment. The very fact that the micro-economic indicators continue to be depressing says a lot about the sensitivity of the present economic managers towards the issues confronted by the general public."

"Needless to say, in Pakistan's environment the gap between political and economic development would always hamper both. Unless there is political development to a stage where the political parties become highly sensitive to their own contribution towards economic progress - which can only come through a sustained democratic process - it would be difficult to see the country re-emerge from its political and economic quagmire."

Aqil Shah in an article in DAWN observes: "Since donors now virtually control the entire development policy process in Pakistan, as elsewhere in other aid-dependent countries, the onus of bridging the gap between the good governance (less corrupt, economically sound and more democratic governments) and prescription and practice rests squarely with them.

"No matter who is in power, the sad truth is that the socially disruptive levels of poverty and unemployment in Pakistan are not merely the result of ‘slippages in reform implementation.' What donors conveniently forgot to mention during PDF 2003 - and no one from the Government side dared point out - was the sharp and sustained contraction in development expenditures since the early 1980s when Pakistan first signed structural adjustment loan (SAL) agreements with the IFIs.

"Dwindling aid commitments and the deteriorating terms of external assistance suggest otherwise.

"With stagnant export earnings and domestic revenues, the only way for Pakistan to repay loans is to borrow more, thus driving itself deeper into the debt trap. The net value of foreign aid transfers turned negative in 1996-97, and again in 1999-2000/ 2000-01 as debt repayments registered a steep rise. Put simply, we paid back more forex for debt retirement than we received as aid. Besides, a lion's share of aid is tied to specific projects and purchase of donor country goods and services.

ADNI Bureau

A race abandoned

By Samir Sen

The people of Indian origin did not find even a passing mention in Alan Paton’s first Author’s Note to his bestseller, Cry, The Beloved Country. The novel, published in 1948, awoke the world to the life of non-whites in South Africa.

"I did not mention the Indians largely because I did not want to confuse readers unnecessarily," South Africa’s best-known writer explained in his note to the 1959 edition. "The existence of this minority is now much better known throughout the world because their position has become so desperate under apartheid legislation."

Four decades down the line, Indians in post-apartheid South Africa feel desperate as ever. "The mindset of Indians is partly responsible for this," said retired school principal Gouden Gopalsamy, a community leader in Verulam. "They do not want to integrate with the natives." Verulam, the third oldest township in the eastern province of KwaZulu Natal, was the first settlement of Indians who arrived here as indentured labourers in the second half of the 19 century.

The Indian community in Verulam consists of two types – the descendants of indentured labourers from North and South India and the better-off traders, mainly Muslims, from western India. Over 80 per cent of Indians have settled in KwaZulu Natal, 15 per cent in Transvaal and the remainder in Cape Province. "Over the last four generations we have been enjoying a harmonious relationship between ourselves," said Amichand Rajbansi, leader of the Minority Front (MF), the only political party representing the Indians.

The problem arises when it comes to identifying with the black Africans, the people of mixed descent called ‘coloureds’, and the whites. Charoes (a slang for people from Indian and Pakistan) make up 3 per cent of South Africa’s 43.4 million people. The coloureds, referred to as ‘Lighties’, are 10 per cent, whites or ‘Vetoes’ 18 per cent and the blacks or ‘Darkies’ 68 per cent.

"We were better off during the white regime," is the refrain of most Charoes, who appear to despise the ruling African National Congress (ANC) policies like ‘Affirmative Action’ and ‘Land Restitution’. Bartender Jeffry Chetty complained that young Indians were largely unemployed were bleaker than those of the blacks and whites.

The whites still control the financial institutions, and the ANC’s Affirmative Action policy promotes blacks in both government and private jobs. "Our children are left in the lurch," said Jeffry. The Indian business community has its own grouse. Shanti Fakeera, who runs a laundry business on Todd Street, Verulam, said the ANC was imposing heavy taxes on them to make up for South Africa’s financial mess under the new regime. "Our businesses are crumbling," said Shanti.

Not all agree. "We have no communal or caste clashes here," said Bindhoo Rajcoomar, a secretary at the law firm Rindell and Company. "We are generally happy. It is only when we go overseas that we realize how spoilt we are here!" Bindhoo, a mother of three, has visited India and the United States.

But the repulsive feeling the relatively prosperous and better educated Indians generate among the natives is too obvious to ignore. "We may have to drive out your people from our country," a black youth told The Week. "Within five years South Africa would witness a Zimbabwe like situation (where whites are being driven out by the natives)."

Even a subdued Petros Zikalala complained that Indians did not want to be equals with blacks. Ironically Petros serves as a security guard at an abandoned prison in Verulam, which stands witness to the Indians’ solidarity with blacks in their passive struggle against the infamous Ghetto Act. Thousands of Indians, treated as criminals and not political prisoners, served hard labour here in 1946.

It is not as if South Africans do not acknowledge the contribution of Indians. Mahatma Gandhi is widely respected by all for teaching the world, South Africa in particular, the power of peaceful resistance. Gandhi’s bust stands in the middle of a Verulam park, 40 miles North of Durban," dedicated to the memory of all indentured labourers for their sacrifice and contribution in enriching the lives of all South Africans".

Prominent Indians like Rajbansi, whose party shares power with the ANC in KwaZulu Natal provincial government, were surprised to learn that caste-based discrimination continued in the Mahatma’s homeland. "It is a rude shock that a country that stands for values and high principles calls it an internal problem," he said. "South Africa, on the other hand, dared to look racism in the eye. We do not tolerate discrimination on any grounds, though socio-economic freedom has not been attained. It will take time for a broad mass of people to be freed."

According to Rajbansi, the abolition of apartheid in 1994 was a miracle of Africa and credit should go to the vision of ANC leaders Nelson Mandela and Govan Mbeki, father of President Thabo Mbeki, who ensured a peaceful transition.

"We need to be considerate ad patient when it comes to the blacks who were previously disadvantaged," he said. The blacks are also competing with Indian businesses today, freely operating street stands and occupying places in the flea market, hitherto a monopoly of Indians. "We need to empower the blacks," said Rajbansi.

The people of Indian origin are under pressure to identify themselves as equal South Africans. They are advised to stop speaking in terms of ethnicity, majority or minority. The Minority Front, though, is lobbying hard for the establishment of a ‘minority desk’ in the government to look after the interests of the Indians, coloureds and other minorities. Rajbansi recalled Mandela as stating that ethnicity could not be ignored.

"But for that to happen, Indians should come out of the influence of the former white political parties," said Rajbansi. "In the 1994 elections 65 per cent of the Indian electorate chose to go with the whites. We are very disturbed with this trend and my party is committed to ensuring that the trend is reversed."

Easier said than done. With growing unemployment the younger generation is turning to crime. The country’s racial history complicates enforcement of law. The whites and Indians complained that the police refuse to crack down on black offenders. An Indian trader, who alleged several shop breaking attempts at his premises, termed them as hate crimes.

Former United Democratic Movement MP S. Manna Naidoo, the first Indian to represent Verulam constituency during the white rule, said the Indians in South Africa are soft targets. "We are not militant as the other minority groups and remain law-abiding citizens," he said.

A large section of Indian subsistence farmers have chosen to abandon their lands and migrate to urban locations thanks to rise in racist murders of farmers, mostly whites. Finances are hard to come by and fresh agriculture taxes are being imposed. The Cottonlands, where a majority of the Indian farming community was concentrated, has been taken over by blacks. The Indians fled because of the bloody rivalry between the ANC and Inkatha Freedom Party during 1984-94.

The Land Restitution policy hardly benefits the Indians. In Waterloo, the biggest confirmed settlement in KwaZulu Natal, there are hardly any Indians though the government claims it is multi-racial. Brothers Phillip and Simon Appanna are among the few Indians who ‘dared’ to make Waterloo their home. "We moved here a month ago," said Philip, who participates in the community policing effort. "So far there has been no problem, though stealing is a fact of life here. But we try and make conscious efforts to associate with the majority."

Though they were born and brought up in a black-dominated locality, the brothers are wary about sending heir children to schools dominated by blacks. "It will affect their upbringing," they said.

According to Rajbansi, Indians are going through a transition period. "You cannot be fence-sitters even in your own country," he said. Majorities of the Charoes, who cannot even faintly recall which part of India their ancestors came from, know their destiny lies in South Africa. Said grocer Moonera Sheikh: "We still think of India as the land of our origin. But in reality it is a distant land." INAV

Frozen employment

By H C Katoch

Both the Central and our State Govt in unison put a ban on filling up the vacant posts and creation of new posts as per the agreement reached between the two as reported in the press. It was a policy decision probably with the intension of controlling the alarming expenditure of salaries etc. that is increasing with every passing year. On the other hand, it is a price for containing the turmoil through sharing the extra burden of security related direct unproductive expenditure. Looked from purely financial terms it may appear genuine under the existing compulsions, but when viewed from the impact it has created on the socio-economic structure, it has further shattered the balance between demand and supply of working force which consists of mostly educated unemployed. It has triggered the sensitive issue of survival and further encouraged the destabilising forces to disturb peace and prosperity.

It is purely a field of economic expertise with visionary excellence to determine the impact of such a policy even at national level. Is it the only way to have fiscal policy keeping employment doors shut? Depression of 1930 gave birth of Lord Keyens ''General theory of Employment''. At that time millions of workers were parading the streets of England without employment. He brought out the economy from depression through employment generating mechanism even with investments made for unproductive purposes.

Freezing of employment, launching of VRS is to get rid of the manpower in job. It proves our shortsighted actions of the past and present and lack of vision which has forced us to reverse our own policy of employment related to work demand.

The Governmental actions to politicise the employment generation programmes not only in Delhi, but also in our State through different schemes not conceived after testing a few cases, but with theoretical assumptions have failed to achieve the desired results. See the results of the success of PMRY or self employment. It has just 5000 individuals to cover against the alarming number of graduates, postgraduates and technocrats entering the employment market very year.

Sometimes available posts with sanctioned amount from Government of India also even remained vacant due to slowly processing or shelving till some jerk necessities for taking action promptly. Ujala Society with over 200 posts in Information Technology under Sarv Shiksha Abhiyan are yet to be filled up despite lapse of over one quarter of the year after receipt of applications in the Education Department. On the contrary, potential of manpower absorption in SKUAST Jammu is held up as the needed amount of Rs 20.00 crores is yet to be provided which would further attract an investment of Rs 60.00 crores from the Govt of India. This is just an example of dealing cases/schemes in routine manner which are otherwise of great importance and utility for the masses. Such priorities are to be taken care in the larger interests of future benefits accruing to the State. Some dynamic and dedicated functionaries of different levels deserve a pat, but their efforts crumble under the weight of heavy weights in upper layers of decision makers who are less concerned with making apparatus move fast probably due to their lack of appreciation of the ground realities or some other reasons.

Facts of unemployment are known to the public and all educated unemployed. I will not go into long analysis of frozen employment but suggest concrete steps to utilize the potential of youth entering the employment market. It is not the job of single thinker to provide result-oriented approach. He can propound a theory which may or may not hold good in different set of circumstances or situations but it certainly awakens the power apparatus to ponder over the failure of conventional methods in the changed economic scenario. Thus there is a need for a concerted effort in each discipline, sector and area of economic exploitable potential by the persons in power, administration and working in economic pursuits.

Manpower Planning:

Manpower planning is our old concept, but it has never been scientifically adopted. We know for every educated youth an outlet is needed either for higher education or absorption in the economic structure in the society. Thus education policy has to he reframed. At different stages, vocational education has to become a part of academic education and higher learning is allowed only to those aspirants with proven faculties.

Secondly, every sector of the economy has to be linked with the capacity to absorb the educated youth. The energies of the youth are to be channelised for each sector both through basic academic education and for achieving professional or technical qualifications. Further appropriate linkages are to be developed between different variables to arrive at estimates nearer to the exact requirements.

Thirdly, analysis of Government investments is to be made in relation to job opportunities that will created both short term and long term.

Fourthly, behaviour of private sector for their need of absorption of manpower with varying degrees of expertise or skill would be further assessed.

Fifth is another area for study i.e.State Net domestic product. Contribution of primary, secondary and tertiary sectors will give us a picture of working force engaged and contribution made. The secondary sector in our state is extremely poor in its contribution towards state domestic product. Thus this area is of concern and if propely tackled could provide immense opportunities for jobs creation.

These are the broad parameters for determining ways and means for employment generation with a positive approach. Our earth has extreme potential to feed human beings. It is our vision and approach to the problem, which can overcome our fears of growing unemployment.

Government machinery is tied with procedures without flexibility and as such timely and efficient actions remain a dream when some decisions are required to be taken in the interest of work culture etc where deviation from procedual aspects is desirable.

This strategy is relevant not only to our State, but also to other states of the country as well as to Union Government for devising effective and result oriented employment policy. The Government of India is framing schemes in isolation of the total view of manpower and job opportunities by groping in the dark for adoption of holistic approach for development of necessary bridge and linkages amongst the various variables connected with employment, job opportunities, geographical needs, climatic considerations and lastly the human beings of educated class.

Stop foreign aid

By Bharat Jhunjhunwala

The World Bank has put a draft of the World Development Report 2004 on its website for discussion. The Bank has called for increased development aid so that basic services like water, sanitation, power, health and education reach the poor. Aid is supposedly given in charity for the benefit of the recipient. There are two concepts of charity that are relevant in this context.

First, charity is given without expecting any material gains. It is given so that the giver develops detachment towards his worldly possessions and rises spiritually. If charity is given for social, political or economic gains then it should be called ‘trade’ or investment. The Sethji who gives money to build a room in a temple and has his name plate put there is undertaking a trade. He buys social acclaim with money. That is not true charity.

The second concept is that charity is to be given only to those who have opted out of the economic race like the destitute and the ascetics. Charity or aid is not to be given to a person who working hard to raise himself by his own efforts. Aid is meant for destitute who have already lost everything and have nothing more to lose. If charity is given to a person who is rising, it kills his self-efforts, makes him dependent, orients his mind towards ‘begging’ for more instead of earning more and causes great damage to his psyche. Thus we find that many poor people will not accept free food when offered. They do the right thing for the psychic loss in moral strength would be much greater than the material gain in food. The Bank has given many reasons why aid has been having precisely such a negative effect.

* Aid influences the nature of domestic spending. A donor may make a huge hospital for AIDS, which is high its own agenda, and that may lead to the poor country spending towards the recurring expenditures in AIDS prevention.

* Aid may be given for projects in which the recipient is not interested in. I once suggested to a foreign donor to finance research for locating tree species which the farmers would find profitable to plant. But the donor wanted immediate publicity and quick results. Thus it persisted with the programme of providing subsidy to the farmers for planting trees which were not useful for them.

* Donors may insist that the recipient government spend their own money in specified sectors as conditionality for receiving aid. The IMF has insisted that the poor countries seeking debt relief have to open up their economies and follows an ‘open borders’ policy. That opens up those countries for the Western exports and Multinational Corporations.

A more dangerous aspect of aid is that it kills nationalist politics. The World Bank has given some indications of this happening.

* Foreign donors often provide big salaries to their domestic employees. One friend of mine was the State-level Secretary of a Left party. He got disillusioned by the internal politics of the Party. Instead of fighting within the Party, he became a highly-paid representative of a foreign donor.

* Donors often provide the needed services directly. In Bangladesh many health and education services are being provided by the donor-NGO network. This reduces the accountability of the political system for its responsibility in these matters.

Despite these negative aspects it is true that aid often provides relief. But the recipient countries pay a heavy cost in the long run. Thus we see that countries that have received huge foreign aid have virtually never risen. Even within the country we can see that districts like Udaipur have remained in the economic backwaters partly because they received huge amounts of foreign aid.

It is interesting then that the World Bank yet seeks more aid. It recognizes that measures to improve the productivity of aid are required. But it thinks that aid-led economic development is possible and desirable. It does not recognize that charity is to be given for spiritual gain and to a destitute only. This is understandable for the objective of Western donors and the World Bank is to prevent the cut short the economic development of the poor countries.

It is good that the Government of India has taken a decision to stop accepting aid from many sources. One would have wished that the exemptions to the few countries and the United Nations would be removed as well for there is no qualitative difference in the aid given by these agencies.

There are other non-government donors like Oxfam, Amnesty International and Greenpeace which criticize their own governments while providing assistance. What do we say to them? The answer is that instead of providing us money they should put pressure on their own governments to follow righteous policies. Rich countries have turned charity into a political tool to disempower the poor countries. These organizations should pressurize their governments to relax patents acts, ease visa restrictions for the entry of workers from the developing countries and provide access to their markets. These measures will genuinely empower the developing countries and provide them money. They would no longer need foreign aid either from the Western governments or these well meaning organizations.