Secure pension Funds

By Nantoo Banerjee

Prime Minister Manmohan Singh must thank his left allies for doggedly opposing the pension fund regulatory authority bill last year seeking to involve private fund managers to deploy a part of the employees' provident fund and pension fund savings in the stock market to earn higher return for them. Had the bill in its original form become a law to allow free flow of PF savings into the stock market, it would have by now caused a big nightmare for not only the Employees Provident Fund Organisation (EFPO) but also the Congress in an election year. Finance Minister P. Chidambaram was particularly in favour of the bill for a very obvious reason - lessen the pressure on the exchequer to subsidise any fund shortfall due to lower interest earnings from the existing statutory avenues of PF deposits.

Over the years, the government sanctioned interest rates on PF deposits available to members have come down substantially to the dismay of national labour unions. Last year, under pressure from the leftist trade unions, the government as a temporary measure agreed to pay 8.5 per cent interest on PF deposits. The rate is supposed to be reviewed this year. Going by the rising inflationary trend, the unions may actually press for an upward revision of the interest rate. The unions are also expected to oppose more vehemently any move to privatise the operation of the PF kitty citing the present condition of the stock market.

The latest collapse of the stock market would have put both the EFPO and the government in deep crisis owing to massive erosion in the value of such investment. The size of the PF kitty for investments runs into a few lakh crores of rupees. The government's pension liability in 2008-09 is expected to be in excess of Rs. 56,000 crore or 1.4 per cent of the value of the gross domestic product (GDP). The current price trend in the stock market, which is not entirely unexpected considering its near-uninterrupted bull run breaking all basic reasons, is a clear indication that the government cannot and should not gamble with the employees' pension funds by deploying them in highly unsecured instruments such as overpriced stocks and less reliable mutual funds. A loss of PF investment in the stock market is too high a political risk to be ignored by any sensible government. This is more so for a coalition government without a clear public mandate and which has contributed nothing to labour welfare. As it is, EFPO pensions are too low and fixed. The real value of such pensions, which could be as low as Rs. 500 per month, gets eroded every week under pressure of price inflation.

Several public trusts, big and small, are already feeling the heat as their investments in mutual funds and stocks, especially in the last seven months, have depreciated substantially, at least by 30 to 40 per cent from the entry levels. Many of these private trusts withdrew their term deposits from banks and high net-worth corporate bodies, yielding an annual eight to nine per cent interest, and invested in mutual funds and stocks expecting a much higher return. These trusts are in a soup now. Any sale of investment in the current market could only be at a huge loss. The retention of the investment portfolios, on the other hand, could mean even a higher loss as the market has become unpredictably volatile and its future growth looks quite uncertain especially in view of the economic slowdown since the last quarter of 2007.

International investment bankers and analysts are predicting a much slower growth for 2008-09 than what is forecast by the Reserve Bank of India governor, Y.V. Reddy, and the Union Finance Minister. JP Morgan has cut its earlier forecast for the country's economic growth in 2008-09, from 7.5 per cent to seven per cent, making it the slowest pace of growth in the last six years. The global fund manager, which launched its first ever mutual fund in India about eight months ago, would know things better as it lost about 30 per cent net asset value of its product from its peak level in the last four months. Thus, it may be too early to predict when the bulls will arrive to take control of the stock market once again.

Public trusts are mostly charitable welfare trusts or religious trusts. While the latter can cut down on vandaras (free meals to devotees and almsmen) and other festivities to partly absorb the losses arising out of their investments in the stock market, the welfare trusts running educational institutions, hospitals, healthcare centres, homes for the disabled and destitute, etc. all on shoe-string budget, may find it extremely difficult to swallow the losses on investments to carry on their normal operations. If the current trend in the market continues, some of these charitable welfare trusts may go bust. The others may have to resort to borrowing by cheaply mortgaging their prized land to banks or even private loan sharks.

Practically speaking, the public, in general, have a stake in all trust funds, whether charitable or contributory such as PF, since these funds entail certain tax exemptions for the benefit of the donors, or contributors, or even trust management - all at the cost of the national exchequer. Any wastage of trust fund should be regarded as a crime against the nation. This alone, if nothing else, calls for a stringent set of rules for the judicious management of all trust funds to make sure that they yield desired results. Exemplary punishments should be provided under the law to rogue fund managers who dishonour the public trust and bring losses to their organisations through wrong or risky investment decisions - willful or not. (IPA)

Create due space for women

By J R Aryan

Should women get due place in society ? It is a million dollar question before the society in this millennium should not fail to find an answer which is too simple and straight. Yes and true the answer is ‘Yes’. None should have the slightest hesitation to answer in affirmative. But why?- Is the other question that crops up which we need to answer for which we have a lot of explain. In fact, the dominance of men in society is already on a diminishing spree and bound to perish and vanish like a melting cloud with the passage of time and alround development in education and other fields with equal share for women in the new and rational dimensions of the society.

Even the Almighty, the omnipotent, the omniscient and the omnipresent who created this universe and shall continue to govern it till eternity did not create or produce here a male or a man alone. If man alone would have been the be-all and the end-all of life and society then why God should have created the counterpart of man namely woman, his better-half, simultaneously ? Was He wrong ? No, not at all. The creator has created this universe with all precision, all perfection, ‘‘Balance, equation and relation. A woman was just to balance the man's journey of life to be his part and parcel and a true companion in his life struggle. Man and woman are just like the two wheels of a two wheeler to keep it going in full balance without staggering. It is often said that men make houses and women make homes. It is also a fact that every successful man does have a woman's hand and inspiration behind him. It is a woman who produces a man who gives her pain and agony from the day 1st which she bears with patience, coolness, love and perseverence. Who else knows the pangs of child birth ? Who can fix a price for motherhood-the priceless gift the almighty has blessed her with. She is a mother, a wife, a mistress, a house wife, a sister, a partner, a solacer, a friend, a good companion and also Ardhangni or better-half of a man to share his joys and sorrows, to stand by him through thick and thin, through weal and woe, through hot and cold through the moving wheel of life in the entire social set-up and what not. Then why regard her as something different or inferior, weaker or below the level of man ? The truth is that she is maker and care-taker of the man and society.

Rabindernath Tagore has termed her as the builder and moulder of a Nation's destiny. Delicate and soft as a lily she has a heart and determination far stronger and bolder than that of the man. She is a supreme inspiration for man's onward march, an embodiment of love, sympathy, pity, affection and compassion; and of course patience. Not for nothing was it said that the hand that rocks the cradle rules the world and that when we teach a man we teach an individual and if we teach a woman, we teach a family. Even Dr Rajendar Prasad, the first President of India, a great writer has said that in the apron strings of a woman is woven and hidden the revolutionary energy which can establish paradise on earth. The orthodox male oriented society through various Inbargoes, compulsions and restrictions like the Sati System, Child Marriages, Denial of education to women, restraint on their movement at social, political and educational get-together or functions, the bogus primitive ideology of permanent ban on widow marriage etc have gone a longway to demoralize the women folk and has worked havoc to lower the prestige and dignity of women and in letting down their status and real identity in the society. This is how the society has been getting decayed, demoralized and deteriorated at different periods in the past by passing all sorts of strictures, restrictions and compulsions against women. In the past it was only in Vedic period when women enjoyed and got their due place, prestige and respect in the society and had the privilege of having a distinguished status at par with men. The woman has regarded as Devi, an embodiment of love, affection, piousness and patience and as an apostle of compassion and peace.

But time the great master, the great healer, takes its decision in its own way to bring about changes quite thrilling and even unexpected under His command always for the better with its smooth forward movement . Today time has changed the scenario. Now the Indian women have recaptured their dignity, respect, individuality and status. They have right to franchise and are free to join any field, any service or profession as per their talent, performance and liking. In political and many other fields they have outrun the men and established their dignity. We have seen powerful woman Prime Ministers like Smt. Indira Gandhi, Margret Tharture, Smt. Bhandar Naike etc. we have also come across woman Cabinet Ministers, Women Ambassadors, Diplomats, Women Parliamentarians and Legislators, Women Governors and Judges, Women Generals and Lawyers, Women Doctors, Engineers Educationists, Women Pilots and Soldiers and even Women Astronauts. We have also seen Women Police and Army Officers, Women Navigators, Women Journalists and Correspondents. Also in press, print and Electronic Media as well as in Software Technology women have worked wonders. We have had the prestige of a woman President of United Nations General Assembly from India namely Vijay Lakshmi Pandit. At present we feel the craze of having a woman president of Indian Republic namely Smt. Pratibha Patil.

Be it peace or war our women or the women of today go shoulder to shoulder with men. Be it patriotism or the war of India's independence, the bravery and sacrifices of women have a unique and unprecedented history and role of their own. Who can afford to forget the names of Rani Jhansi, Raziya Sultana, Rani Durgawati, Chand Bibi and Sarojini Naidu and many others?

The liberty of man and woman must remain within the permissible limits and should never cross the given mark as it is bound to upset the sailing boat. Both should accept the wrong as wrong and the right as right. For example these days nudity and obscenity of the women finds exposure on screen and T. V Channels which is not a healthy sign. Such things have condemned by both men and women at all levels as these are bound to vitiate our sound cultural heritage and values. Some scholars say that the word, ‘‘Women’’ means one who relieves a man of all his woes. So man's superiority is a thing of the past. Let not the woman superiority go to become a thing of the future. Let man and woman shed their craze of superiority which yields only contrariety. Let the march together like the two wheels of a two wheeler for a balanced happy life and a prosperous society. Neither a husband should become cruel, nor a wife termagant. Both must be polished, decent and elegant.

Self help through consumer protection

Dr. Sheetal Kapoor

"A customer is the most important visitor on our premises. He is not dependent on us. We are dependent on him. He is not an interruption in our work - he is the purpose of it. We are not doing him a favour by serving him. He is doing us a favour by giving us the opportunity to serve him", said Gandhiji.

Consumer Protection Act, 1986

The most important milestone in Consumer Movement in the country has been the enactment of the Consumer Protection Act, 1986. The Act has set in motion a revolution in the field of consumer rights, that perhaps cannot be paralleled anywhere else in the World. The Act applies to all goods and services unless specially exempted by the Central Government, in all sectors whether Private, Public or Co-operative.

The Act enshrines all the consumers rights which are internationally accepted. As per the Act, the consumer protection councils have been established at Central, State and District levels to promote and protect the consumer rights. They are:

* Right to Safety: To be protected against the sale of goods and services which are spurious/ hazardous to life.

* Right to information: To know the quality, quantity, weight and the price of goods/services being paid for, so that one is not cheated by unfair trade practices.

* Right to Choose: To be assured, wherever possible, access to a variety of goods and services at competitive prices.

* Right to be heard: To be heard and to be assured that the interest would receive due consideration at appropriate fora.

* Right to Seek Redressal: To seek legal redressal against unfair or restrictive trade practices or exploitation.

* Right to Consumer Education: To have access to consumer education.

Awareness

The success of consumer movement depends upon the level of consumer awareness generated among the masses about their rights and responsibilities. It has been observed that where literacy rate is high and social awareness is better, the consumer can not be easily exploited. Being a nodal department for Consumer Protection, the Department of Consumer Affairs has taken several steps to strengthen consumer movement in the country and protect consumer interest by involving State Governments, Voluntary Consumer Organisations, and Consumer Activists etc.

Consumer Protection in India received a shot in the arm in recent times with the Department of Consumer Affairs, introducing new schemes like setting up of Consumer Clubs in schools and the launching of Jagriti Shivir Yojana for spreading consumer awareness. The setting up of a National Consumer Helpline in Delhi University, to be run by the students and faculty with financial assistance from the Department is a major step in this direction. It has a toll free number 1800-11-4000, which allows a consumer anywhere in the country having a problem to ring up this number and get proper advice.

Children are the backbone of any society. Children in India constitute 18.7% of the World kids population and one-third of our country’s population is under the age of 15 years. Thus in India, children form a massive 30% of the total population and this segment is growing at a rate of 4% per annum. This means a huge target market of 300 million is available to advertisers and they are already focusing on the kid channels.

A survey by A C Nielsen UTV’s research partner showed that an average child watches TV for about three hours on week days and 3.7 hours on weekends, the time spent on television goes up with age, and the preferred language of viewing is Hindi across all age groups. Apart from the programmes children also view a lot of the advertisements.

In India the advertising expenditure per year on products meant for children but purchased by parents, like health drinks, is 12 to 15 per cent of the total Rs. 38,000 million. Ad expenditure per year on products meant for children and also bought by them such as chocolates is seven to eight per cent. By promoting awareness among them the Consumer Movement in the country will be further strengthened.

Consumer Courts

Many schemes have been started by the Government to empower the Indian Consumer. Like setting up of Consumer Courts.

To provide simple, speedy and inexpensive redressal to consumer grievances . Under the Act, a 3-tier quasi-judicial machinery have been set up at national, state and district levels. The National Consumer Disputes Redressal Commission (NCDRC) referred to as National Commission is the apex consumer redressal forum and is located in New Delhi. Each state has a Consumer Disputes Redressal Commission known as the State Commission. Similarly, every district in the country has a Consumer Dispute Redressal Forum known as the District Forum.

Consumer -On Line

Another intervention is the "Consumer Online Resource and Empowerment Centre (CORE Centre)" for providing consumer related information, guidance and an online consumer complaint redressal mechanism. It is being run by the Consumer Coordination Council (CCC), which is a coalition of 51 consumer organizations of this country.

The country now has exclusive special law to protect the interest of the consumer with a foolproof redressal mechanism in case of defective goods and unsatisfactory services. Hence the welfare of consumers now remains in their own hands. If the consumers are responsible, vigilant and are able to assert their rights and responsibilities, resist/reject substandard goods/services wherever required and do not hesitate to seek justice through consumer courts if needed, the manufacturers, traders and service providers cannot afford to take them for granted while selling a product or rendering service on payment or to adopt any unfair trade practice. An alert consumer aware of his rights and responsibilities not only can protect himself but can also make consumer sovereignty a reality. (PIB)