EDITORIAL

Insanity unlimited

It is a matter of utter shock and disbelief that a girl has been kidnapped and raped at Ratnuchak at the outskirts of this city. She had gone to a canal for washing clothes. She was abducted and taken inside the building of a government school where her modesty was outraged by three persons. One is left aghast by the audacity of criminals. The area has a sizable presence of uniformed forces. Instead of being deterred by this fact the lecherous hoodlums have gone on to perform a most heinous act. Only recently we had expressed anguish in these columns against similar incidents in Bishnah, not far from Ratnuchak,..more

All is not gold

All is not gold that glitters. The old proverb comes to mind following the disclosure about an inter-state racket involving gold. As is only too well known the price of the precious yellow metal has sky-rocketed of late. There is no indication yet the process will be significantly reversed. Any promise, therefore, that it is available at a cheap rate is ridiculous. Yet, it is enough to lure the naïve and the greedy. According to a report in this newspaper, a number of people have fallen prey to the temptation to get gold at lower-than-market price. They have been taken for a ride by gangsters of this city in collusion with those in Alwar district of Rajasthan with networks in Ghaziabad, Rohtak and Jaipur. ...more

Avoidable races among
J&K politician

MEN , MATTERS AND MEMORIES

By M L Kotru

The raging battle between Senators Hillary Clinton and Barack Obama for the Democratic ticket to contest the November US Presidential election against the ‘Republican nominee Sen. John McCaln is turning out to be a bit of cliffhanger. The Democratic aspirants ........more

Promoting tourism

By Dhurjati Mukherjee

There is an imperative need to promote tourism in a big way. India’s success could attract more and more tourists for eco-tourism, religious tourism, historical tourism, medical tourism etc. Every single State has some unique characteristics, which could interest tourists in one way or the other. The ..more

How not to curb inflation ?

By Sisir Basu

It is a monetary truth that economics is not a mistress of politics. But the UPA Government is trying to give a new twist to this universally accepted economic wisdom. The Reserve Bank of India Governor, Yaga Venugopal Reddy, in his last annual policy statement like his Finance Minister, P. Chidambaram, is fighting a losing battle by formulating wrong policy parameters to contain inflati. ..more

EDITORIAL

Insanity unlimited

It is a matter of utter shock and disbelief that a girl has been kidnapped and raped at Ratnuchak at the outskirts of this city. She had gone to a canal for washing clothes. She was abducted and taken inside the building of a government school where her modesty was outraged by three persons. One is left aghast by the audacity of criminals. The area has a sizable presence of uniformed forces. Instead of being deterred by this fact the lecherous hoodlums have gone on to perform a most heinous act. Only recently we had expressed anguish in these columns against similar incidents in Bishnah, not far from Ratnuchak, and Budhal in Rajouri district. Why should girls suffer from cruelties all over? The latest available figures of the National Crime Records Bureau (NCRB) which are for 2006 are revealing. According to them on an average more than six women face some sort of indecent behaviour in the State every day. This is apart from unreported harassment they are made to undergo in buses and crowded public places. Traditionally the crimes against women are rape, kidnapping and abduction, dowry death, torture, molestation, sexual stalking, importation of girls and matters under the laws related to prevention of immoral traffic, sati, dowry and indecent representation. The NCRB statistics for the State are: rape cases (250), kidnapping and abduction (723), dowry deaths (10), molestation (960), sexual harassment (347), cruelty by husband and relatives (135), Immoral Trafficking (Prevention) Act (5) and Dowry Prohibition Act (2). In real terms, however, the scenario is far worse. The Srinagar sex scandal is a case in point. It has underlined the nadir that our social order has touched. There is exploitation of women seeking jobs for the sustenance of their families. A widely accepted belief is that a significant number of these shameful occurrences are brushed under the carpet by victims and their families for fear of adverse social reaction in a male-dominated environment. It is high time that such self-destructive thinking was given up. Failure to do so at present makes it extremely difficult to measure the true extent of violence against women.

An intriguing aspect of this obnoxious phenomenon is that at times women are the biggest offenders against the members of their own ilk. This holds good especially in dowry-related crimes. Women, of course, have also figured in offences like dacoity, murder, cheating and smuggling. Their reasons for involvement in these activities are the same as those of men. They are motivated by the feeling of revenge. Some of them want to make a fast buck. There are a few who assume the role of gangsters to prove a point that they can be as dominating as the men. The West has already talked of the emergence of "mafia mamas" in response to or as accomplices of "mafia dons". In our country itself, at least half a dozen women have literally called the shots in the Chambal ravines, Uttar Pradesh and Gujarat.

Unfortunately, however, that only seems to add to rather than resolving the troubles of women on the whole. In a civilised dispensation they have to fight for their honour like their male counterparts in a prescribed legal manner. The only difference is that they need a helping hand in view of deeply-entrenched wicked mindset against them.

All is not gold

All is not gold that glitters. The old proverb comes to mind following the disclosure about an inter-state racket involving gold. As is only too well known the price of the precious yellow metal has sky-rocketed of late. There is no indication yet the process will be significantly reversed. Any promise, therefore, that it is available at a cheap rate is ridiculous. Yet, it is enough to lure the naïve and the greedy. According to a report in this newspaper, a number of people have fallen prey to the temptation to get gold at lower-than-market price. They have been taken for a ride by gangsters of this city in collusion with those in Alwar district of Rajasthan with networks in Ghaziabad, Rohtak and Jaipur. The modus operandi adopted by cheats was to identify prospective buyers, trap them with appealing offers on telephone and eventually settle for finalising the deal at a mutually agreed nearby village. The dreams merchants would claim to have found gold in a large quantity. Blinded by the desire for making quick money the customers would reach the location either to be robbed or to be handed over gold-coated material in exchange for cash. In some instances the purchasers are stated to have developed suspicion at the last minute. Their bid, however, to question the contents of the object given to them resulted in their severe thrashing. This is another proof that unscrupulous elements keep devising new strategies to exploit other persons. It is a financial fraud with a difference. So far we have come across fake chit fund companies fading away after making enormous collections. There have been deceitful bank transactions as well. Automated teller machines (ATMs) have also been tempered with and sought to be broken open. In the present instance it is the shine of the gold that has been applied to cast an entrancing spell all around. The love for gold is almost universal and the people everywhere have deep-rooted attraction for it. It is considered the most trustworthy monetary medium fetching nearly the same price across the globe. Anyone possessing it does not have to bother much about the paper currency of his own or any other country. Economist Paul Einzig has remarked: "Even during the period when Rome lost much of her ancient prestige, an Indian traveller observed that trade all over the world was operated with the aid of Roman gold coins which were accepted and admired everywhere." In the sub-continent in particular gold can be transacted easily because it is considered necessary to wear gold ornaments during marriages and other family and social functions. Diamond too is preferred in this context but is thought to be too expensive and, hence, out of the reach of many.

Gold alone is acknowledged as the lowest risk and highest potential investment. That, however, can't be the reason for people to buy all glittering articles as if they were gold. It is their hunger that comes in handy for the swindlers to take advantage of. For their own sake they ought to firmly resolve to buy or sell gold only through prescribed channels. What can they do, however, when even Rama is persuaded to chase an elusive golden deer and Sita crosses the Lakshman rekha?


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Avoidable races among J&K politician
MEN , MATTERS AND MEMORIES

By M L Kotru

The raging battle between Senators Hillary Clinton and Barack Obama for the Democratic ticket to contest the November US Presidential election against the ‘Republican nominee Sen. John McCaln is turning out to be a bit of cliffhanger. The Democratic aspirants are tearing each other, and consequentially their party as well into shreds. I had seen the beginnings of the tussle between the first woman ever and the first Afro-American ever for the Presidential ticket in its nascent stages more than a year ago during a longish visit to the US.

Gender and colour aspects apart, the Democratic aspirants are fighting on the same turf, for essentially similar values. Never, not even once, has anyone expressed any doubt about where their heart lies: in the well being of the US and the American way of life. Agendas may differ but at the heart of their campaign lies their commitment to the betterment of their country and its people.

Unlike in India, the world's most populous democracy, the effort is more to unite the country, to enable it to prosper and to allow the people to get their share of sunshine. The American politicians, like our own, do make promises but the fear of public scrutiny and accountability at the bar of public opinion ensures that they do deliver on some. Unlike ours, who use every election to further divide the people, to add to their fears about their (people's) future and the future of generations to come. Rare indeed is the Indian vote-seeker who takes pride in his Indianness. The rest of the world may speak well of us, our growing economic strength but our politicians for the most part are doom and gloom men. The choice on offer is vote for me or face doom.

With these prefactory remarks I must turn to the ominous noises emanating from Kashmir. Short-sighted mainstream politicians in Jammu and Kashmir are rolling up their sleeves for fresh elections to the State Assembly later in the year. It is the ominous noises they make that cause worry. The people at large, even in the long troubled valley, have over the past two years developed an interest in peace and exploring avenues of improving the quality of their lives. The slowed down militant activity, largerly flowing from the Indo-Pak peace process of the past few years, has contributed to the valley's return to a semblance of normality though the regrouping militant organizations in Pakistan and the POK have threatened to resume the ‘jihad’ in Kashmir.

A valley developing interest in peace and stability doesn't exactly fit into the Jihadi plans.

In fact a step-up in militancy, in the context of the newly forged and clearly (fragile) PPP-PML-N in coalition in Islamabad is something that suits the separatists in the Valley. The moderate separatists, having accepted the so-called Musharraf plan to resolve the Kashmir issue, find themselves in a piquant situation. The mainstream political parties headed by Mufti Sayeed's People's Democratic Party which shares power in the State with the Congress Party, has stolen the Hurriyat's plank lock, stock and barrel. Indeed to go by what the PDP leadership, including the Mufti and his daughter, Mehbooba have been publicly stating is a jump or two ahead even of the Hurriyat, even of the Musharraf self-ruling zonal plan. Mehbooba wants a Regional Council of Jammu and Kashmir Assembly and the POK Assembly to get together to work out a joint mechanism for the economic transformation of the divided State. Her father has already said he wants a common currency for the two halves of Kashmir, adding he would take up the issue with the Prime Minister. A senior Minister in the State and senior PDP leader, Tariq Hamid Qarra, had in fact spoken of common currency weeks before the Mufti mentioned it. On that occasion the Deputy Chief Minister, Mr Muzaffar Baigi, another senior PDP leader, had snuffed out the controversy, acknowledging that this would be unacceptable under the Constitution.

I don't want to read much more than is necessary into the controversial Mufti proposal considering that in the battle of the ballot even the National Conference leader, Omar Abdullah has laterly been towing the Musharraf line which would on the face of it go much beyond the provisions of the Autonomy Bill which his father, Dr Farooq, had successfully piloted in the State Assembly as the Chief Minister of the State.

There are many other straws in the wind suggestive of developing competition among the Valley's mainstream parties to strike postures of equidistance between New Delhi and Islamabad. This is frought with grave consequences. For one thing, it draws a wedge between the Valley and the Hindu-dominated Jammu region, not to mention Buddhist Ladakh. I am not sure how many Jammuites or Ladakhis, for that matter, would like to be saddled with a common currency for the POK and the State.

What is probably prompting Mufti Sayeed and his party to strike such adventurist postures is the growing resentment among some of his senior party men against what some uncharitably have described as the authoritarian ways adopted by the Mufti and Party President, the Mufti's daughter, Mehbooba Mufti. One of the founders of the party and a former Minister in Mufti's cabinet has already been thrown out of the party which has only added to the anger among many other partymen some of whom have indeed set afloat moves to form a separate front. For once even senior Congress party workers in the valley are emboldened to mount a direct attack on the PDP with which they share power in the State. They are accusing the PDP leadership of playing opportunistic politics. Hunting with the hounds and running with the hare.

The Valley politics apart, the pre-election posturing by the mainstream parties is bound to sharpen the divisions between the Valley and Jammu. The Congress party may be hoping to gain a firmer grip on the Jammu electorate as a consequence of the kind of politics being played by its alliance partner in the valley. To me it appears that it may help BJP more than it does any other party.

The coalition headed by the Congressmen Ghulam Nabi Azad has announced a slew of measures to woo the valley including its latest, which promises jobs for 70,000 educated unemployed youth. The PDP has lost no time in claiming credit for its after all it is part of the Government. The PDP, the Congressmen rue, has made a virtue of taking credit for all the ameliorative schemes announced by the Azad-led Government and yet has no hesitation in carrying on a negative campaign against the Government of which it is a part. The National Conference too has steeped up its vilification campaign against the State Government, the PDP its primary target, for very obvious reasons. Its chargesheet against the Government and the PDP is a wide-ranging one, corruption and nepotism its highlights. Fortunately for the National Conference the dissidents within the PDP appear to be strengthening the NC's case. And the PDP isn't helping its cause any by its fulminations against the ‘‘obstructionism’’ evidenced in New Delhi's approach to the peace process.

It's nobody's case that the peace process, initiated by Vajpayee and carried forward by the Manmohan Singh led UPA, and the former military dictator and now the civilian President of Pakistan Pervez Musharraf, has failed. The process has seen many initiatives taken, most notable of these the various confidence building measures. That New Delhi is willing to move forward along the path of reconciliation worked out by the two sides and the upcoming Islamabad visit by Pranab Mukh- erjee is an acknowledgement of it. It now remains to be seen how the prevailing political dispensation in Islamabad responds to Mukherjee's visit. The Prime Minister, for his part, has made his position clear during this recent visit to Jammu.

What can't be forgotten is that Pakistan is ruled by a an odd coalition of which the People's Party and the Nawaz Muslim League, with a long history of past antagonisms, are the main pillars. A lot will depend on the view the two parties take of the initiatives taken by the previous military dispensation. Another factor that cannot be overlooked is the renewed calls for Jihad in Kashmir emanating from various militant groups including of course the Jihadi Council headed by Salahuddin from Pakistan. One can only hope that Pakistan Government doesn't allow the militants to renew their acts of terror in the State and that it utilizes the upcoming visit of the Indian Foreign Minister to give a forward push to the proposals which Islamabad and New Delhi have assiduously worked on for the past three years.

It is this hope that makes it incumbent on the mainstream political parties in the valley not to take extreme positions which have in them the potential to sabotage the process, of which they have been a part. Election fever does force politicians to take positions which they know to be unworkable. Mufti Sayeed having been a part of the process of reconciliation and his party being part of the coalition that has ruled the State for about five years, faces greater responsibility on this count alone. One cannot overlook the constructive role he has played, in the past, particularly as Chief Minister, for three years, with the ‘‘healing touch’’ as his mantra to bring peace and stability to the State, I hope the Mufti hasn't lost that touch.

Promoting tourism

By Dhurjati Mukherjee

There is an imperative need to promote tourism in a big way. India’s success could attract more and more tourists for eco-tourism, religious tourism, historical tourism, medical tourism etc. Every single State has some unique characteristics, which could interest tourists in one way or the other.

The ‘Incredible India’ campaign has been quite successful and driven the growth of tourism in the country. It captures the underlying spirit of the country, its culture, tradition and spirituality.

The opening up of air transport and emergence of low-cost carriers has greatly helped boost up tourist arrivals to this country.

A study conducted by FICCI on development perspective of eco and rural tourism revealed that it had the highest employment and investment ratio. Every additional investment of Rs 10 crore has the potential to generate 47.5 jobs. Further, every direct job created in tourism leads to a creation of 77 jobs in other related sectors of the industry, the study stated. Besides the multiplier effect of tourism generates high revenue-capital ratio in the Indian context. Indirect employment generated in the form of revival of traditional arts and crafts, development of communication, hotels etc.

Attracting foreign tourists has become a priority and there are expectations of reaching the 10 million mark by the end of the 11th Plan period. There is presently one lakh approved quality accommodation which should be increased to two lakh by 2011, according to report by a working group on tourism for the Eleventh Plan. According to Subhash Goyal, President of the Indian Association of Tour Operators, "if we implement the suggestions by the Ministry of Tourism, it will not be difficult to attract 10 million (foreign) tourists".

The need for creating adequate infrastructure to attract more tourists, specially those from foreign countries, has been a long felt need. The Tourism Ministry has earmarked Rs 650 crore budget allocation for this fiscal to develop sites within the country. The Ministry has decided to give a maximum of Rs 50 crore (and Rs 25 crore) to State Governments to develop each circuit and destination.

Accordingly it has been planned to set up 100 heritage circuits by the end of the 11th Plan of which 25 are expected to be of International standard. The government also plans to build world-class infrastructure at Hampi, Agra, Konark, Khajuraho, Orccha and Datia along with Buddhist and Jain centres. To develop cultural tourism, the government has identified six museums at Delhi, Mumbai, Chennai, Kolkata, Bangalore and Cochin which would be upgraded to compete with global standards.

As religious tourism has been gaining ground for quite some time, the Buddhist area of Raghir, Nalanda and Bodh Gaya have also been chosen for development. A special train has been introduced for the Buddhist pilgrimage from India and abroad particularly from the South Asian countries to promote tourism.

However challenges still remain. The challenge is to create around 100,000 additional star category hotel rooms or good quality resorts in the next three years. The Tourism Ministry has decided to create ‘land banks’ by acquiring land for building hotels through public-private partnerships on a built-operate basis.

There is also need to improve roadways, transportation, ensure clean and hygienic environment and ensure safety and security conditions in the areas and give these places a modern look. Improvement of surroundings of tourist spots, specially in rural areas and ensuring cleanliness needs to be given due attention. It needs to mentioned here that tourists should not feel any inadequacy of anything and enjoy their travel in India.

The working group suggestions, if implemented, can definitely boost tourism in the country. However, there is need to concentrate on countries such as South Africa, Israel, Spain, China, Japan, South Korea, Australia, Brazil and Argentina which would help in attracting tourists to India. Fewer tourists come to India from these countries, so they offer high growth potential, the report said. Promotion of business-related travel by building convention centres of international standards in major cities and new tourist centres has also been envisaged in the report. Moreover, the country needs to prepare strategies to increase per capita expenditure on shopping.

India has emerged as the 4th favoured destination for holidays above South Africa and Switzerland, as per a survey undertaken by Conde Nast Traveller magazine for their 2006 Readers Travel Awards. It is indeed a big country with various types of unique destinations and natural locales. It is also a region of the world’s greatest biodiversity while, on the other hand, a place where history is found embedded in palaces, monuments and conservation sites. As such, the average duration of stay of a tourist in Singapore is about 5 days as against 26 days in India because of the latter’s vast tourist potential.

It would thus not be difficult to transform the country into a 365 days-a-year destination where tourists would find themselves comfortable at each and every place, whether the visit is intended for historical, religious, ecological or health reasons.

How not to curb inflation ?

By Sisir Basu

It is a monetary truth that economics is not a mistress of politics. But the UPA Government is trying to give a new twist to this universally accepted economic wisdom. The Reserve Bank of India Governor, Yaga Venugopal Reddy, in his last annual policy statement like his Finance Minister, P. Chidambaram, is fighting a losing battle by formulating wrong policy parameters to contain inflation which has touched a record high of three years at 7.41 per cent.

Mr. Reddy for the second time within a fortnight has hiked the Cash Reserve Ratio (CRR) by 25 basis points taking it to 8.25 per cent. The move is aimed at sucking out another Rs. 9,000 crore from the monetary system. The RBI preferred to leave other pivotals such as the Bank rate, Repo rate and Reverse Repo rate untouched at six per cent, 7.75 per cent and six per cent respectively. The latest increase of 0.25 per cent in CRR would be effective from 24 May. Until then the earlier hike would take away Rs. 18,500 crore liquidity from the system.

CRR-a crude, direct tool to suck out excess money from the system-has been frequently used by central banks in Asia in recent years. Since 2004, RBI has raised the CRR by 375 basis points to 8.25 per cent.

The CRR hike is like a tax on banks (which earn nothing on the cash), they may be partially compensated through a lower risk weightage on a part of its home loan portfolio. Despite the growth optimism, there are areas of concern, Mr. Reddy pointed to the risks posed by over-leveraged institutions, and indicated banks must arrange more capital for derivatives books and off balance-sheet exposures.

The focus is on containing inflation to bring it down within 5.5 per cent. On a year-on-year basis Wholesale Price Index (WPI) inflation at end-March 2008 was 7.4 per cent compared with 5.9 per cent a year ago. It did plunge to 3.1 per cent in October 2007 but started rising rapidly since February 2008. He hoped the policy measures taken by the Government and the central bank would start yielding results in the next three months. But this is a wrong assumption as the inflation has a large element of supply side mismanagement and hoarding by traders.

The central bank's priority is to achieve price stability and orderly conditions in financial markets while sustaining growth momentum. The GDP growth projection also underlines a cautious forecast of eight to 8.5 per cent although the Government and the Finance Ministry optimistically look for nine per cent or more.

The policy pronouncements cheered the stock markets as bank, realty and auto shares suddenly soared on the Dalal Street. Bankers said the stance of policy would compel them to increase interest rates to check consumption and control loan delivery to tackle inflation.

What would be the result of this policy announcement? There is now much high probability of global economic and credit slowdown than was anticipated till recently. Despite some serious steps taken by the government risk on the price front remains. The RBI is also concerned with increasing crude oil prices in the world markets.

Noting that the food stocks of the world have fallen to their lowest levels in 25-years, the RBI said this has shot up 40 per cent globally in 2007. The conventional as well as unconventional developments taking place internationally and domestically would need a timely and swift response and so some untimely declarations to confront such situations would be made.

It made good policy sense too: a rate hike could have slowed growth, made life difficult for countless borrowers and even pushed up money supply through more NRI remittances and migration of savings from post offices to banks.

Few central banks could anticipate the FII inflows that respective markets have been inundated with. Even as late as April 18, RBI raised CRR by 50 bps in two phases.

If these measures are not enough to contain inflation, Chidambaram later told corporate heads at the annual function of CII, the Government will take administrative measures to contain price rise. In a veiled threat, he said: "If the fiscal and monetary measures are not enough and if the industry does not change its behaviour, certainly we will improve administrative measures." However, he hoped that the fiscal and monetary measures taken so far would be sufficient to control inflation. He said the food situation has improved in the last 2-3 weeks. However, its impact on inflation is still to unfold.

Doing his bit, Prime Minister Manmohan Singh, while speaking at the CII meet, cajoled corporate honchos to assist the Government in containing inflation. He said the industry should absorb the increase in costs of inputs and pass on the benefit of duty cuts to the consumers.

In Parliament, Chidambaram said steel contributed 21.3 per cent of the current inflation. To improve its availability at lower prices, he cut the import duty on pig iron, sponge iron, granules and powders, hot rolled coils and cold rolled coils to nil from 5 per cent.

He removed the countervailing duty of 14 per cent on the import of TMT bars and structurals, which are used for construction of houses. He also exempted the basic custom duty on metallurgical coke, ferro alloys and zinc-three critical inputs for the manufacture of steel which had a 5 per cent duty so far.

In order to improve the domestic availability of rice, the FM has imposed export duty at the rate of Rs. 8,000 per tonne. He said the margins of exporters of rice have been rising as a result of buoyancy in international prices. The new duty imposition is likely to be a big dampener for exports of rice.

It has not been easy; never more so than now when growth is slowing and inflation is picking up. With policy prescriptions pulling in opposite directions-slowing growth demands a reduction in interest rates while rising prices demand a hike-the RBI has to make a judgement call about which one takes precedence while deciding its policy stance. Is growth more endangered than price stability? Or is it the other way round? Which is more important and what is the cost-benefit trade-off?

The answer, in a democracy that is home to a third of the world's poor even by the antiquated definition of a dollar a day, should be clear to all concerned. Except to armchair economists who live in their rarefied theoretical world! Fortunately, on this politicians with their finger on the pulse of the people (and an eye on the next election) and practicing central bankers see eye-to-eye. The different postulates outlined by the RBI and Finance Minister would be politically palatable in an election year, hopefully. INAV

 
 



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