Winds of change

By B.K. Chum

Is the Kashmir issue heading for yet another turn, possibly a positive? Perhaps yes. Developments of the past few weeks and some coming events support the optimism.

The most important development has been the qualitative change in Pakistan's political scenario. Other developments include the signs of realignments among Kashmiri separatists and the Assembly elections due before 2008 end.

The imminent assumption of power by an elected government in Pakistan after over eight years of Pervez Musharraf-led Army rule is taking place in a radically changed atmosphere. Before Atal Behari Vajpayee and Nawaz Sharif first initiated efforts for normalising India-Pakistan relations which were temporarily disrupted by Musharraf's 1999 Kargil misadventure and his dethroning Sharif in a coup, successive Pakistani rulers had encouraged secessionism and terrorism in Jammu and Kashmir. The atmosphere in Pakistan was conducive to the proxy war in Kashmir as religious extremists and fundamentalists, supported and encouraged by Pakistani rulers, held sway over large sections of the people who felt emotionally surcharged over Kashmir linking the state with Islam.

The situation, however, has undergone a radical change, particularly after the terrorists 9/11 attack on America, the Musharraf-led regime joining America's "war on terror" and initiation of the peace process between India and Pakistan. Under US pressure, Musharraf was forced to resume the disrupted composite dialogue with India. Though his military establishment did not completely stop abetting terrorism in Kashmir, his becoming an American ally in the "war on terror" made him and his government the target of local and foreign terrorists. With Pakistan and CIA-groomed mujahideen and Taliban becoming Frankenstein and America pressurising Musharraf to act, the Army dictator was forced to go on the offensive against terrorists in Pakistan. Pakistani rulers priority to deal with the internal turbulence led to decline of infiltration into Jammu and Kashmir and coupled with Indian security forces stepped-up anti-terrorist drive, helped improved the state's security environment.

These developments are changing the peoples' mood.. Large sections of Pakistanis no longer seem to be enamoured of the religious extremists and their agenda. This is indicated by the rout of the religious parties in Pak elections. Religious fanatics forget that they can influence governments decisions and block the pace of a country's progress by rousing passions but they are seldom able to get popular mandate for coming to power. If ever they succeed, their rule proves to be short-lived.

Having themselves become victims of terrorist violence which also took Benazir Bhutto's life has seemingly made large sections of Pakistanis less sympathetic to Kashmiri militants. Although their wish to see Kashmir merging with Pakistan remains unmitigated, Kashmir and Pakistan's changed scenario and the realisation that Kashmir cannot be wrested through war have subdued Pakistanis intense emotional bondage with the Kashmir issue. Even Pakistani rulers have stopped describing the 'Kashmir struggle' as freedom struggle.

An indication of Pakistanis changed mood was available from the lacklustre celebrations of the Kashmir Solidarity Day on April 5. Though Pakistan government declared a holiday and leaders indulged in the ritual of expressing support to Kashmiris, Jamait-e-Islami was the only party which took out a procession to link Islam with the state. Unlike in the past, there were no demonstrations expressing determination to grab Kashmir.

It is in this backdrop that the moves for realignments among the Jammu and Kashmir separatists assume importance. These moves are highlighted by some Hurriyat's splinter groups returning to the moderate outfit. Significance is also attached to the tele-address by moderate Hurriyat leader Shabir Shah and the Hurriyat hawk Syed Ali Shah Geelani to a Jamat-ul-Dawah conference on Kashmir held in Lahore. The conference was presided over by Dawah chief Hafiz Muhammed Sayeed, founder of the banned Lashkar-e-Toiba. Shabir Shah recently joined the Mirwaiz Umar Farooq-led moderate Hurriyat. While it is yet to be seen what form the realignment moves takes, the developments in Pakistan and Kashmir's changed security and political environment are bound to force separatists to rethink their attitude towards Pakistan and their future role in the state, particularly in the Assembly elections.

In keeping with their traditional stand, hardliner separatists are expected to boycott the elections. But these will provide the moderate Hurriyat an opportunity to prove its claim that it is the representative body of the people of the Valley. The claim so far remains unsubstantiated as the outfit, which does not have any base in the state's other two regions of Jammu and Ladakh, did not participate in the elections held in the past.

Apart from the above factors what will give a positive turn to the Kashmir issue will be Pakistan's elected government's ability and the time it takes to resume the composite dialogue with India. On the new government's adopting a realistic attitude in the changed situation will depend the future course of the talks and a solution of the Kashmir problem. The government's priority task, of course, will be to bring about political stability in Pakistan. Given the fractured electoral verdict, it will not be an easy task. Till the government settles down, speculating about the time frame for resuming the stalled talks will be unrealistic. But any delay in their resumption would not make India uncomfortable. (IPA Service)

Optimising higher education

By Harsh Bhal

Rarely has the discussion on the nature and extent of quality and excellence been as intense as in our times. ‘Assessment for quality assurance’ is widely known across the world since late 20th century. The movement may be called as the promotion of the ‘Assessment Culture’. In India, it has taken a concrete shape only in the last decade of the last century, with the establishment of the National Assessment and Accreditation Council (NAAC) (in 1994) and a few other quality assessment organizations in the public domain, for the assessment of higher education institutions and programmes.

The NAAC, with a vision ‘to make quality the defining element of higher education in India through a combination of self and external quality evaluation, promotion and sustenance initiatives’, has assessed and accredited 3,644 Higher Education Institutions (HEIs) (as on 22/12/2007) and has also undertaken a number of quality promotion activities. There is a mixed response from the HEIs and the academia, to the external quality assessment. Many institutions have voluntarily opted for NAAC assessment and proudly exhibit their accreditation status. Few others have apprehensions about the NAAC assessment process. For a deeper understanding of the complex process of external quality assessment, it may be useful to critically examine the motivational factors for readily seeking NAAC assessment on one hand and the inhibiting factors for hesitations to go for assessment on the other.

Positive Responses

Some of the reasons for institutions opting for NAAC assessment are:

· Recognition of their excellence/achievements.

· Self-improvement, by understanding their strengths and limitations.

· Building the institutional image and attract students from far and wide.

· International recognition of the institution and assurance of admission of their students in foreign universities.

· Incentives from the Government and other funding agencies.

· Insistence of some of the State Governments.

· Pre-condition for getting the autonomous/deemed university status and such other recognitions by the University Grants Commission (UGC) or permanent affiliation by concerned universities.

Some Apprehensions

Some of the apprehensions and fears of institutions about the NAAC assessment are:

* Fear of the unknown.

* Fear of getting a lower grade and/or not getting the desired accreditation status.

* Lack of enthusiasm on the part of management and staff to take up the preparation work (institutional data presentation in the Self-Study Report).

* Assumption that it is a costly activity.

* Belief that it does not lead to any consequential benefits.

* Reservations about the external assessment of Quality.

* Reservations about the reliability and credibility of NAAC methodology and processes.

* Belief that one can ignore the process as it is not a mandatory activity at present.

NAAC relation with the HEIs

Most of the apprehensions listed above are quite unfounded. Similar are the experiences of most of the external quality assurance agencies across the world. The International Network for Quality Assurance Agencies in Higher Education (INQAAHE) guidelines of good practices for External Quality Assurance Agencies (EQAA) include the basic premise of a congenial relationship between EQAA and HEIs. NAAC relations with the HEIs are based on the following guidelines:

· Recognition that institutional and/or programme quality assurance is primarily the responsibility of the higher education institutions themselves;

· Respect for the academic autonomy, identity and integrity of the institutions and/or their programmes;

· Application of standards or criteria that have been subject to reasonable consultation with stakeholders; and

· Aiming to contribute to both, quality improvement of and accountability by the institution.

Miles to go ……….

During the last thirteen years, NAAC has covered a long way, from initial resistance through subsequent acceptance to appreciation. We at NAAC are aware that we still have a long way, to fully realize our mission. Towards this, we may have to address three major concerns:

Firstly, we are yet to assess a large number of institutions. Appropriate mechanisms have to be developed to complete the first cycle assessment of all HEIs by the end of the XI Five Year Plan. We may have to evolve multiple strategies for this purpose. Establishment of regional/state level assessment agencies, encouragement of NAAC-validated private professional agencies/sectoral assessment agencies for programme assessment are some of the measures that deserve careful consideration.

Secondly, the instrument of assessment requires continuous fine-tuning. Some limitations of the instrument we use to assess the performance of a complex system arises from an inability to combine quantitatively-measurable and qualitatively-perceptible factors into a single model. Appropriate measurement is necessary for improvement. It is rightly said: "if you can’t measure it, you can’t understand it; if you can’t understand it you can’t control it; if you can’t control it you can’t improve it". In quality measurement, we must constantly ask two questions: Are we measuring the right things and are we accurately measuring them? NAAC is continuously engaged in improving its instrument. We hope that the fine-tuning of the criteria, key aspects and assessment indicators and adoption of the Cumulative Grade Point Average (CGPA) with effect from 1st April 2007, would result in a more rigorous and reliable measurement of the institutional performance.

Thirdly, the Peer Team, consisting of assessors, plays a critical role in the assessment exercise. The Peer Team is the public face of NAAC. The judgement by the Peer Team members is the basis for assessment and accreditation. Selection of right Peers as assessors and equipping them with necessary professional skills to undertake the job are challenging tasks. NAAC is aware of the human limitations and is continuously trying to provide professional inputs to the assessors, to complete the task without any bias and arrive at reasonable and acceptable judgement.

The Approach

There are many other concerns and new concerns may arise in the context of newer situations. More than these concerns our approach is very significant to our activities. NAAC believes that quality has to be nurtured and not controlled. The agricultural model of seeding, nurturing and climate building is more suitable to the quality assurance model. Probably, in future, instead of completely focusing on time-bound assessment activity, NAAC may have to focus on nurturing and continuously-assessing the internal quality assurance systems of the HEIs. It is equally important to recognize that the EQA is an indicative exercise not a prescriptive or deterministic one. (PIB)

Union budget tax matters

By Asha Ramachandran

Will the Finance Minister axe the taxes in this Budget 2008-09, is the moot question on all minds be they in the corporate sector, professionals or the ‘aam admi’. The run-up to the Budget has been rife with speculation on whether it would be a populist Budget or a balanced one given the ongoing global economic scenario. The main source of revenue for any Government, taxation is one area any Finance Minister finds hard to touch. While the direct tax collection has been buoyant, the indirect tax scenario has not been so cheerful. Decelerating customs revenue growth and low excise revenue are obviously the main problems confronting the Finance Minister as he chalks up the taxation plans. He is thus expected to focus on better mobilization of earnings through direct and service taxes

But then, if anything, the Finance Minister has the comfort factor of presenting the Budget in the backdrop of a booming economy. In line with a GDP growth of 9.4 per cent recorded last fiscal, the economy is expected to record a growth rate of over 9 per cent in 2007-08. The annual inflation rate, as measured by the Wholesale Price Index (WPI) is in the range of 4 per cent to 5 per cent. On the other hand, while the Indian cereal output of around 200 million tonnes projected for the current fiscal may raise comfort levels as far as food security is concerned, India cannot expect to stay isolated from global conditions, especially with a spiralling crude oil prices.

The fiscal situation too has improved. The aggregate gross fiscal deficit relative to the GDP declined considerably in 2006-07 and is further expected to go down in 2007-08 to touch 2.6 per cent of GDP, about 70 basis points lower than the estimated 3.3 per cent. The revenue deficit too has improved to around 0.9 per cent of GDP, 60 basis points lower than the 1.5 per cent Budget target for 2007-08. The Government is hopeful of achieving the targetted zero revenue deficit by the end of 2008-09, the terminal year of the Fiscal Responsibility and Budget Management Act, 2003.

The one thing that is feared to derail this rosy picture is agriculture, with its painfully slow growth rate. Appreciating Rupee is another area of concern, with exporters taking a severe hit this year. This has had a fall-out on several sectors, including manufacturing, which contributes a major bulk of the tax revenue, as well as the IT services. The other factors that pose a potential risk to the growth outlook are infrastructure bottlenecks, high inflation rate of assets, especially housing prices in the international market, widening trade deficits and turbulent global financial market.

In this backdrop, there is pressure on the Finance Minister to churn out a more benevolent Budget as far as taxes are concerned. Industry as well as economists have suggested widening the tax base and increasing the tax revenue to check tax avoidance. They have also called for rationalisation of the provisions of direct tax laws. Acknowledging that no Finance Minister would like to upset the apple cart when the going is good, the economists, however, see merit in reduction of tax rates, wherever appropriate, while maintaining the rigour of fiscal administration.

Personal Income Tax

Recognizing the urgent need to increase the taxpayers’ base, they have recommended collection of smaller tax amounts from more persons rather than a bigger tax amount from few persons. The economists have also impressed upon the Finance Minister to try not to touch Personal Income Tax (PIT). Rather, they have urged him to use the improved revenue to improve expenditure on infrastructure and rationalising indirect taxes.

Among the anticipations from the forthcoming Budget, in order to make a taxpayer save around Rs 2,000 every year, the fixed deduction limit might be raised by 20 per cent to Rs 120,000. The Budget 2008-09 is also expected to raise the relief for personal income tax level from Rs 1.1 lakh to Rs 1.25 lakh a year. However, taxable income of up to Rs 1.5 lakh is likely to continue to extract 10 percent income tax.

With the government announcing that it will focus more on the tax compliance issues, the Budget is not expected to increase the maximum marginal rate of personal income tax further in a bid to encourage voluntary compliance. The maximum marginal rate of personal income tax is expected to be in the region of 30 per cent. However, the taxpayer base is not large as a large portion of the population lies below the poverty line.

Telecom

The telecom firms in India are facing the burden of various forms of levies and taxes, which they want to be lessened in the Budget 2008-09. The industry wants a more transparent system through the promotion of a single levy. License fee is heterogeneous across the country, which needs to be removed. In its place the telecom firms want a uniform license fee structure of 6 per cent all over the country.

Hydro-carbon

Tax holiday has also been mooted for the hydro-carbon sector, at par with tax incentives granted for the power sector. Meantime, the Indian industry has at the same time been very much concerned on various cesses and levies imposed from time to time. For instance, the National Calamity Contingent Duty (NCCD) has been imposed by the Government on select items like motor vehicles, crude oil and polyester filament yarn. This has not been abolished so far, creating uncertainty in the minds of investors. The NCCD, say tax consultants, has added significance in view of the hike in crude oil price in the international market. It is thus important for the government to rationalise excise and customs duty structure in the case of petrol and diesel imports, they feel.

Charitable Institutions

The IT exemption enjoyed by these organisations is likely to be removed as it is feared that in the disguise of charity, these establishments may be indulging in the misappropriation of funds by being registered under the Section 12A thereby avoiding tax payment.

Capital Transaction Tax

With black money transaction increasingly a major issue, the Government is believed to be working towards introduction of Capital Transaction Tax (CTT) in Budget 2008-09. This tax would be imposed depending on the "circle rate" prevailing in the state, where the deal is being registered.

The move is seen as benefiting the treasury or exchequer as well by becoming a means of retrieving revenues at a time when the property market or the real estate industry is booming with opportunities galore. (PIB)