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WEEKLY CURRENT AFFAIRS BULLETIN
21Oct TO 27 OCT 2011
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Weekly Current Affairs 1

NATIONAL NEWS
Singhbhum MP Madhu Koda. The Commission has already fixed November 4 as the date for hearing the complaint against Mr. Chavan. The BJP has alleged that he encouraged "paid news" and did not show, in his election expenditure, the money spent for getting publicity. Mr. Koda is facing a similar charge: that he did not submit proper election expenditure accounts in the 2009 Lok Sabha poll and used "paid news." His case is due to come up before the Commission. INDIA RANKS 132 ON BUSINESS-FRIENDLY REFORMS: WORLD BANK REPORT India's rank in the "Doing Business Index" prepared by IFC-World Bank climbed up seven notches from 139 to 132 indicating improvement in the business environment. However, according to the Report the attractiveness of doing business in a country did not depend solely on rank in the index. Moreover India's rank of 132 remained well below those of the neighbours like Sri Lanka at 89th position, Nepal at 107th, Bangladesh at 122nd and Pakistan at 105th. Even countries like Rwanda and Samoa are place at 45th and 60th rank respectively. Among the BRIC countries, again, India is placed at the lowest level as Russia is at 120th, Brazil at 126th and China at 91st rank. Singapore continues to be at first rank, followed by Hong Kong, New Zealand, the US and Denmark. The annual World Bank report takes into account regulatory changes in 183 countries for starting and doing business by local firms. It ranks the economies in 10 areas of business regulation such as starting a business and resolving insolvency and trading issues across borders. This year, the ranking also include indicators on getting electricity. The Doing Business Report said it takes 29 days to set up a business in India, 19 days in Bangladesh and 35 days in Sri Lanka. Interestingly, the report added that an entrepreneur can start a business in 7 days in Afghanistan, 9 days in Maldives, and 21 days in Pakistan. It said over the past six years, all eight economies in South Asia have made their regulatory environment more business-friendly, but Sri Lanka implemented the most reforms, thereby helping to create a better environment for entrepreneurs. INDIA HUMAN DEVELOPMENT REPORT 2011 The recently released Human Development Report, 2011 with the theme 'Towards Social Inclusion' has praised Weekly Current Affairs 2

'PAID NEWS' CLAIMS FIRST POLITICAL SCALP AS EC DISQUALIFIES MLA In the first of its kind of judgement relating to the issue of "paid news", the Election Commission delivered a historic verdict of disqualifying Uttar Pradesh MLA Umlesh Yadav from contesting again. She has been disqualified from contesting any election for Parliament or the State legislatures or Councils for three years, under Section 10A of the Representation of the People Act, 1951, for suppressing expenditure of Rs. 21,250 (the amount spent for issuing the advertisements) in her election accounts. The ban will take effect from October 20, 2011. While the issue of "paid news" is doing the round in the political landscape of India from last few years and concerning this Election Commission has taken steps by disqualifying a lot of candidates in the past, never before has the Commission thrown the book at an MP or MLA during his or her term. As a result of their verdict the Bisauli seat stands vacated. The Commission heard the case following a reference made by the Press Council of India (PCI) on March 31, 2010, after going through a complaint against Amar Ujala and Dainik Jagran for publishing "paid news" in favour of Ms. Yadav during the last U.P. Assembly elections

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The PCI, in its order, held the two newspapers guilty of ethical violations. It cautioned the media to refrain from publishing advertisements masquerading as news and decided that its adjudication along with all the case papers be sent to the Election Commission of India "for such action as deemed fit by them." After the verdict, Chief Election Commissioner hoped that this first disqualification would help put an end to candidates resorting to "paid news" in the days to come. In the EC pipeline next are the cases against former Maharashtra Chief Minister and MLA from Bhokar Ashok Chavan and former Jharkhand Chief Minister and What is paid news? Paid news or paid content are those articles in newspapers, magazines and the electronic media, which indicate favourable conditions for the institution that has paid for it. The news is much like an advertisement but without the ad tag. This kind of news has been considered a serious malpractice since it deceives the citizens, not letting them know that the news is, in fact, an advertisement. Secondly, the payment modes usually violate tax laws and election spending laws. More seriously, it has raised electoral concerns because the media has a direct influence on voters.

the efforts of poorer States like Bihar and Uttar Pradesh in making the development process more 'socially inclusive' through improving the lot of their marginalized Dalits and Tribals. However it has lamented the richer and developed States like Gujarat wherein the process has not been 'socially inclusive'. The highlights of the Report are as follows:

HDI, whereas it is the poor condition of infrastructure in poorer States that has kept these States poor. There has been "impressive growth" in tele-density overtime from 22 per cent in 2008 to 66 per cent in 2010 on account of increase in urban tele-density. Besides the report also highlights that 75 per cent of population have access to electricity. The report has been prepared by the Delhi-based Institute of Applied Manpower Research for the Planning Commission focuses on income, education, health, literacy, nutrition and sanitation in the country.

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The overall HDI for the country has improved through the last decade, with the inequality gap between States narrowing down. In the last decade the HDI increased by 21 per cent from 0.387 in 1999-2000 to 0.467 in 2007-08. The HDI list has been topped by Kerala with highest education, health and consumption expenditure index. It is followed by Delhi, Himachal Pradesh and Goa.

INDIA LEADS IN ROTAVIRUS INFECTION DEATHS: LANCET Close to one lakh children below the age of five years died of diarrhoea attributable to rotavirus infection in 2008, accounting for 22 per cent of the total deaths reported globally, reports the latest edition of the Lancet Infection Diseases magazine. Diarrhoea related with the rotavirus infection resulted in 453,000 deaths worldwide in 2008 among children younger than five years-37 per cent of deaths attributable to diarrhoea with five countries accounting for more than half of all deaths attributable to such infection: Democratic Republic of the Congo, Ethiopia, India, Nigeria and Pakistan. Introduction of effective and available rotavirus vaccines in other countries, mostly middle-income or poorer, could substantially reduce worldwide deaths attributable to diarrhoea. INTERCEPTOR BOAT TO JOIN COAST GUARD FLEET AT PORBANDAR Indian Coast Guard Ship (ICGS) C-153, a water jet propelled vessel with an endurance of 500 nautical miles at 25 knots and capable of doing high speed up to 45 knots, will be commissioned at Porbandar. The ICGS C153, the 11th and the last in the series of 11 Interceptor Boats (IBs) built by M/s ABG Shipyard, Surat, will be based at Veraval after its commissioning by vice admiral Anil Chopra AVSM, director general, Indian Coast Guard. The 30 metre long vessel is fitted with latest state-of-theart navigation, communication equipment and armament, making it an ideal platform for close coast/shallow water operations, a defence release said, adding its induction will enhance the security along Gujarat's coast. SCHEME AIMS TO REDUCE NEONATAL DEATH RATE A new "Home based New Born Scheme" has been launched to reduce India's shamefully high neonatal mortality rate (NMR). The scheme envisages visits by ASHAs to home of new mother six times in 42 days to encourage safe practices and early detection and free referral of sick babies. The ASHAs will be paid Rs 250 for every home visit and will get the money only after 42 days. NMR accounts for 68 per cent of IMR in India out of which early NMR accounts for 54 per cent. As per the SRS 2009 data, early neonatal mortality (within seven days of Weekly Current Affairs 3

Chattisgarh, Orissa, MP, UP, Jharkhand & Assam have an HDI below the national average of 0.467. MP has the lowest HDI value is at the bottom.

In some poorer States like Bihar, Andhra Pradesh, MP, Chattishgarh, Orissa & Assam the quantum of improvement in HDI has been higher than the national average of 21 per cent.

The overall increase in HDI is attributed to 28.5 per cent increase in education index across the country. It ranges from 0.92 for Kerala to 0.41 in case of Bihar. The improvement in the education index was the "greatest" in States like UP, Rajasthan & MP. However, according to the Report, India is also home to more than one-third of the global world illiterates wherein the percentage of illiterates from SC, ST and Muslim minority community are very high. Among SC/ST more than 50 per cent of women are illiterates. The improvement in health index has been slow. It has improved by 13.2 per cent in the last decade. The highest growth in the health improvement has been noted in Goa (72%) followed by Chattisgarh (22%). In Delhi the growth rate is a meager 4 per cent. Further there exists wide inter-State variation in the health index. It ranges from 0.82 in Kerala to 0.41 in Assam.

The prevailing condition of sanitation is threatening according to the report. Though half of the population had access to sanitation in 2008 still there exists wide inter-State variation. In the States of MP, Chattisgarh, Jharkhand, Orissa, Bihar, Rajasthan and Uttarakhand still 75 per cent of the population does not have access to sanitation.

The most serious challenge arises on the nutrition front. Though Madhya Pradesh still is numero uno in malnutrition and under-nutrition, but the more concern arises from the increase in malnutrition in the richer and developed States like Gujarat. The State with 69.7% kids up to 5 being anaemic and 44.6% suffering from malnutrition, proves that high growth was no guarantor of improvement in health. It is the robust infrastructure in Kerala, Delhi and Goa that has contributed to the overall improvement in

birth) and neonatal mortality (within 28 days of birth) stand at 27,000 and 34,000 live births, respectively. According to the WHO, Just five countries account for more than half of the world's 3.3 million newborn deaths - India, Nigeria, Pakistan, China and The Democratic Republic of Congo. GETTING TO KNOW THE ABC OF CAG Many of the criticisms of the CAG are based on ignorance, misperception and elementary error, and it seems necessary to put matters in the right perspective. For some time now, there has been a stream of criticism aimed at the Comptroller and Auditor General. There has been a series of media 'reports' and even editorials questioning the accuracy, motivation and propriety of the CAG's reports. Many of the criticisms of the CAG are based on ignorance, misperception and elementary error (leaving dubious motivations aside) and it seems necessary to put matters in the right perspective. The CAG is the institution through which the accountability of the government and other public authorities - all those who spend public funds - to Parliament and State Legislatures and through them to the people is ensured. Accountability is not the same thing as accounting, though the latter may be a part of the former; the word 'accountability' really means answerability. We are of course talking about financial answerability. The Executive is answerable to Parliament and to the people for all its decisions, but that answerability is enforced through the CAG where it involves finance and accounts.

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If we understand accountability to mean answerability, much of the confusion disappears. Vouching expenditures and rendering accounts are of course important: Parliament votes funds to the Executive and those funds have to be accounted for. However, answerability is more than that: it also means exercising prudence, avoiding waste, not incurring infructuous expenditure, showing results for moneys spent, and achieving those results at least cost. If the CAG is our prime accountability-ensuring institution, that institution must go into all these matters. If the CAG were 'merely' an auditor, why should Dr. B.R. Ambedkar, during the debates in the Constituent Assembly, describe the CAG as the most important functionary in the Constitution, more important than even the judiciary? Again, if the CAG was meant to be merely an auditor, why did the Constitution prescribe for this functionary an oath identical with that prescribed for the Chief Justice and Judges of the Supreme Court, including the words "I will uphold the Constitution and the laws" while a Minister of the Union swears or solemnly affirms only that he will act "in accordance with the Constitution"? Those who try to belittle the importance of the institution and limit its functions must really ask themselves these two crucial questions. Should the CAG question policy decisions? The answer that immediately suggests itself would be "No", but

consider the following hypothetical cases: (i) the financial implications of a policy were not gone into at all before the decision was made; (ii) the assessment of financial implications was quite clearly wrong; (iii) the numbers were correct but the reasoning behind the decision was specious or fallacious; or (iv) the financial implications in fact turn out to be far higher than the assessment on which the decision was made. In such cases, would it not be within the CAG's mandate, would it not in fact be the CAG's duty as the instrument of accountability, to comment on such a policy? Further, if the CAG is bound by his (or her) oath of office to uphold the Constitution, can he (she) refrain from commenting on something that prima facie seems unconstitutional? If the government were to formulate a scheme or policy that selectively confers benefits from public funds on an individual or group to the exclusion of others on no stated grounds, or on grounds which seem questionable, would it not be the CAG's duty to point this out? If the above understanding is correct, then the various activities that the CAG has been undertaking, such as propriety audit, performance evaluations, and so on, are clearly well within his ambit, as different modalities of ensuring accountability. Moreover, there are two other grounds for this understanding: century-old traditions, and international consensus. Even during British rule there was an Auditor General, and traditions of the independence and objectivity of that office were fairly strong. Gradations of audit were recognised proceeding from simple vouching and expenditure audit through regularity audit, audit of authorisation, audit of the sanctions themselves, and propriety audit, to what used to be called 'Higher Audit'. After the constitution, the CAGs have been following that tradition and adding some technical and methodological innovations. Internationally, there are Auditors General, Comptrollers General, Audit Commissions, and other forms of what are known as Supreme Audit Institutions (SAIs) not only in democratic countries, but even in authoritarian systems. In India, the CAG is the SAI. There are professional organisations such as the International Association of Supreme Audit Institutions (INTOSAI) and the Asian counterpart (ASOSAI) in which the Indian SAI plays an important part, and is held in high esteem. The relevant point in the present context is that the Indian CAG has not stretched the audit function beyond the functions performed by other SAIs. For instance, the National Audit Office of the U.K. has published, among others, reports on: Information and Communications Technology in Government: Landscape Review; Delivering Regulatory Reform; Assessing the Impact of Proposed New Policies; and so on. Some of the reports of the U.S. Government Accountability Office include those on: The U.S. Postal service ("Mail Trends

Weekly Current Affairs 4

Highlight Need to Fundamentally Change Business Model"); Aviation Safety ("Status of FAA's Actions to Oversee the Safety of Composite Airplanes"); Electronic Waste: Strengthening the Role of the Federal Government in Encouraging Recycling and Reuse; and so on. Having regard to those examples, it can hardly be said that the CAG of India has been guilty of over-reach. In the CAG's report on the 2G case, the notional loss figure of Rs. 176000 crore has been much criticised. The report in fact makes it clear that it is difficult to arrive at a firm figure of loss, calculates it in three different ways through different methods, and makes no claim that any of the figures is definitive. However, the media delight in reporting that the CAG's figures have been questioned by various people, and a Cabinet Minister immortalised himself by claiming that there was zero loss. That leads us to the relationship between the CAG and the Public Accounts Committee (PAC) and the Committee on Public Undertakings (COPU). The CAG finalises his reports after taking the government's and PEs' responses to his initial queries and observations and his draft reports, signs them, and submits them to the President of India, who causes them to be laid before Parliament. They are then taken up by the PAC and COPU. It is not the Reports that are under examination but the Ministries and other government offices and PEs, on the

basis of those Reports. The CAG assists and advises the parliamentary committees in that examination. Unlike the CAG of the U.K. (an officer of Parliament) or the CG of the U.S. (a part of the Legislative Branch), the Indian CAG is not an officer of Parliament, but an independent constitutional functionary. The reason for this is that the CAG is CAG for the Union as well as the States, which is a unique feature of the Indian quasi-federal system. Finally, we come to the question of publicity. The CAG's reports have suffered from too little and not too much publicity. One of the major weaknesses of the Indian system is that very few of the CAG's reports are widely known, and that not all of them get discussed in Parliament. Some years ago, press conferences began to be held after the Audit Reports were placed before Parliament, and that practice continues. This is not a new departure introduced by the present CAG. If the CAG is to become more effective as an institution for the enforcement of accountability, it is necessary that Audit Reports be more widely known and discussed. The people have a right to know their contents. If, as a result of the CWG and the 2G controversies, the CAG and his reports are now better known than before, that is a very good development. If the present CAG manages to enhance the effectiveness of this constitutional institution, the country would owe a debt of gratitude to him. Source: The Hindu dated 25 Oct 2011

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Weekly Current Affairs 5

INTERNATIONAL AFFAIRS
FRANCO-GERMAN SPLIT ON EU RESCUE Deep divisions between France and Germany over the EU bailout package mean there is likely to be scant progress on strengthening the euro zone bailout fund. The major sticking point is over how to scale up the European Financial Stability Facility, a 440 billion euro ($600 billion) fund so far used to bail out Portugal and Ireland. France and Germany disagree over the best method to bolster the facility, with France fearing it could lose its triple-A credit rating if the wrong method is chosen and Paris is left exposed. Failure to agree on leveraging the EFSF will further damage confidence in the euro zone's ability to tackle its debt crisis after nearly two years of trying to get on top of a problem that started in Greece and now threatens Italy, Spain and even France, not to mention the broader global economy. Despite the divisions on the EFSF, EU leaders have made progress on another critical element in tackling the crisis - the recapitalisation of European banks. EU officials said all 27 member states had agreed that just short of 100 billion euros was required to bolster bank balance sheets, a substantial step forward in attempts to protect the system against the threat of a default in Greece or elsewhere. BASQUE GROUP ETA INDEPENDENCE CAMPAIGN ENDS ARMED

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Russia has signed a free trade pact with seven other ex-Soviet states in a move to promote closer economic integration across the erstwhile Soviet Union. The agreement was signed at a summit of the Commonwealth of Independent States (CIS), a loose union of 11 out of the 15 former Soviet republics, held in St. Petersburg on October 18-19. Ukraine, Belarus, Kazakhstan, Armenia, Kyrgyzstan, Moldova and Tajikistan joined Russia in the deal. Azerbaijan, Uzbekistan and Turkmenistan took time out to study its pros and cons. The free trade zone is seen as a move reflecting Moscow's effort to get Ukraine join the customs union, a closer economic group Russia set up last year with Kazakhstan and Belarus. At the St. Petersburg summit, Kyrgyzstan was also invited to join the customs union. The St. Petersburg agreements are in line with Mr. Putin's goal of creating a "Eurasian Union" of former Soviet nations. The "Eurasian Union" is to become "one of the poles of the modern world, serving as an efficient bridge between Europe and the dynamic Asia-Pacific region," Mr. Putin wrote in an article published earlier this month. U.N. TELLS U.S. TO LIFT EMBARGO ON CUBA The U.N. General Assembly overwhelmingly adopting a resolution has condemned the U.S. blockade of Cuba and urged America to end its long-running embargo against the Caribbean island country. The resolution, titled "Necessity of ending the economic, commercial, and financial embargo imposed by the United States of America against Cuba," was passed with 186 member states voting yes, two against, and three abstaining. NATO RULES OUT JOINT SHIELD WITH RUSSIA NATO has ruled out a joint NATO-Russia anti-missile shield in Europe and suggested instead that the sides share information on missile threats. At the same time NATO reiterated and assured that the proposed anti-missile system was not directed against Russia. Moscow has firmly rejected the NATO invitation till Russia gets legally binding guarantees that the [anti-missile] system is not targeted against Russia. The U.S. last week has offered to give Russia "written assurances" that the system was not directed against Russia, but refused to provide legally binding commitments.

CLOSER ECONOMIC INTEGRATION IN CIS

The Basque militant group ETA called an end to a 43year violent campaign for independence and said it now wants talks with Spain and France - a groundbreaking move that could pave the way for ending Europe's last armed militancy. ETA had already declared a cease-fire last year - one of nearly a dozen over the years - but up to now had not renounced armed struggle as a tool for achieving an independent Basque state, a key demand by the Spanish government. The group made the latest announcement to Basque daily Gara, which it regularly uses as a mouthpiece. Some kind of announcement from ETA has been expected as part of what seemed to be a carefully choreographed process. It began a year ago when its political supporters renounced violence, ETA called a cease-fire and international figures like former U.N. Secretary General Kofi Annan this week attended a conference that called on ETA to lay down its weapons. The statement made no mention of dissolving outright and unconditionally as the government has demanded, Weekly Current Affairs 6

and asserted what it says is the right of the Basque people to decide their own future - the status quo as part of Spain or independence. Prime Minister Jose Luis Rodriguez Zapatero hailed the news as a victory for Spanish democracy. The announcement came just three days after several international figures, including Annan and Ireland's Sinn Fein leader Gerry Adams, attended a conference on ETA in the Basque city of San Sebastian and called on the group to end the violence. The Basque country is a small but wealthy and verdent region of northern Spain, with its own distinct culture and an ancient language that linguists cannot trace and sounds nothing like Spanish. Under the dictatorship of Gen. Francisco Franco, who was obsessed with the idea of Spain as a unitary state and suppressed Basque culture, ETA emerged as a national liberation movement in the late 1960s.

beginning January 1, 2012. It won 129 votes in the 193member General Assembly. MODERATE ISLAMISTS LEAD IN TUNISIA Tunisians in their first-ever free elections since the end of the French colonial rule which saw 90 per cent of registered voters participating have given the moderate Islamist Ennahda party a head start. It is followed by secularists who are willing to participate in broad based coalition. Since no party has gained the majority on account of complicated proportional representation system in Tunisia, it is hoped that a national unity government will be established. The polls which will elect a 217-member Assembly will then choose an interim government to write a new constitution and prepare for fresh parliamentary and presidential polls. Tunisia is the first country to hold, what might become precedent-setting elections in the region following the Arab Spring, a scorching pro-democracy movement which has already toppled entrenched regimes in Tunisia, Egypt and Libya. The elected representatives seek to establish a unique "Tunisian model" of democracy in her country, despite Ennahda's familiarity with the "Turkish model," and a moderate new-age Islam, which had begun to flourish in several countries, including Malaysia and Indonesia.

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ETA, which has killed 829 people in bombings and shootings since the late 1960s, is classified as a terrorist organization by Spain, the European Union and the US. Its first killing was in 1968. A SEAT FOR PAKISTAN Pakistan was elected on Friday to the U.N. Security Council as a non-permanent member for a two-year term

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INDIA AND THE WORLD

'Most Favoured Nation' treatment. It also provides for elaborate dispute resolution mechanisms between investors and the government concerned, and between governments, including international arbitration. The agreement's overall objective is to promote investment flows between the two countries. While Nepal had asked for soft loans of $1 billion, the final pact provided a $250-million line of credit to Nepal to finance infrastructure projects, at the concessional rate of interest of 1.75 per cent annually. India also provided grant assistance for a goitre control programme in Nepal. Despite extensive negotiations, the two sides failed to agree on a double taxation avoidance agreement which was on the agenda. India has also extended its support to the peace and constitutional process. India will be willing to do everything within its powers to help, depending on the comfort level of Nepali political actors. SECOND INDIA-OMAN JOINT AIR EXERCISES The Indian Air Force completed its second joint exercise codenamed "Exercise Eastern bridge-2011" with its counterparts from Oman, whose northern tip is located at the Straits of Hormuz, entrance to the crucial Gulf. The previous exercise was held in 2009, the first such fullfledged endeavour with a Gulf State. The exercise is part of India's efforts to build strategic ties with Oman, whose ports have been utilised by Indian Navy frigates for anti-piracy duty off the Gulf of Aden. In fact, Oman is the first Arab State to have formalised defence ties with India. Oman stepped up security engagements with India after Prime Minister Manmohan Singh visited Muscat in 2008. Closer security ties would smoothen the path for greater economic engagement. Since Oman has a free trade agreement with the U.S. and thus India could use its industrial zones and the port of Salana, which can be used to send goods to the U.S. In addition to security and economic engagements, India's ties with Oman could also ensure energy security. In this direction India is examining the technical viability of an undersea pipeline from Oman and is planning to invest more in oil and gas exploration. Indian firms are part of a consortium that has been awarded Block 18 to prospect for hydrocarbons Weekly Current Affairs 8

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India and France taking their bilateral cooperation forward agreed to intensify discussion on defence and civilian nuclear matters. On the defence side, DRDO and French company Snecma agreed to joint defence research and development of 'Kabini', the core of the engine Kaveri which forms the part of LCA 'Tejas'. Both the sides also agreed to jointly develop Short-Range Surface-to-Air Missile (SR-SAM) and the modernization of the jet fighter aircraft, the 'Mirage2000'. The modernization of Mirage-2000 entails a cost of Rs. 11, 000 crore. Nuclear safety has been high on the Indian agenda after the Fukushima radiation leak and a fire in a French nuclear waste dump. Doubts were also expressed about the reliability of the patented technology France intends to use in setting up the plants. In this regard France agreed to step up cooperation between the civil nuclear regulatory boards of the two countries. The interaction came at a time when the two armies are engaged in 'Shakti' exercises - for the first time. The terrestrial war games add to the regularly held joint naval exercises under the 'Varuna' and 'Garuda' series by the two air forces. INDIA-NEPAL RELATION Breaking the stagnation that marked bilateral relations over the past two years, India and Nepal signed major economic agreements, aimed at enhancing Indian investment and developmental aid. In a meeting, Prime Minister Manmohan Singh and his Nepali counterpart Baburam Bhattarai arrived at a broad political understanding, whereby India expressed its firm support to the peace and constitutional process underway in Nepal. The two sides formalised the long pending Bilateral Investment Promotion and Protection Agreement (BIPPA), which commits one State to providing compensation to commercial entities, whose country of origin is the other. This applies particularly in cases of wars, national emergency, and armed conflict. Investments from either country in the territory of the other country are to be accorded 'National Treatment' and

INDIA, FRANCE DISCUSS MILITARY, CIVIL NUCLEAR DEALS

Different from other Gulf states in its political reflexes, Oman has spent heavily in modernising its forces in view of the 20-year-long insurgency in the Dhofar region, its crucial location and the fact that the dominant religious sect is Ibadhism, which is said to be different from other Shia and Sunni strain practices in its neighbourhood. U.K. FURTHER TIGHTENS VISA NORMS FOR INDIAN STUDENTS In a move that is likely to affect thousands of Indian students applying for visa to study in Britain, the British government banned nearly 1,900 Indian banks, mostly small regional cooperatives, for the purpose of verifying applicants' maintenance funds. Under Tier 4 of the points-based immigration system, all applicants are required to submit a financial statement as a proof that they have enough funds to support themselves and pay for their course in Britain. The Home Office also published a list of 85 financial institutions operating in India whose financial statements would be accepted for student visas. The move formed part of the reforms to the student immigration route.

Two other important trends marking the backdrop should be noted. One relates to China and the other to India. Myanmar's decision to suspend the Myitsone dam project with China as the main beneficiary, has introduced new tensions, but the two governments are likely to craft a modus vivendi soon. The India-related factor is that South Block, facing criticism, has begun to strive hard to expedite implementation of previous projects and to choose new projects that are susceptible to execution within a shorter time frame. Bilateral Issues

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REBUILDING EASTERN CONNECTIONS THROUGH MYANMAR The India-Myanmar relationship has been enriched by nine visits at the VVIP level in the past decade. The latest visit was by President Thein Sein who heads a more representative government than all his predecessors except one, namely Premier U Nu. This fact alone imbued Thein Sein's visit with special significance, but there are other factors too. A holistic assessment of his dialogue in Delhi requires a critical look both at the bilateral and regional dimensions. Backdrop Since the visit in July 2010 by his predecessor - Senior General Than Shwe, the 'strong man' of the previous military government - the internal political landscape in Myanmar has undergone a noticeable change. A wellplanned transition to guided democracy, accompanied by an increased quotient of freedom for citizens, the release of political prisoners, the adoption of reform agenda and a gradually blossoming reconciliation between the government and Daw Aung San Suu Kyi, has generated optimism. Evidently her political influence, together with her freedom and visibility, are on the rise. But prudence demands that the magnitude of change should not be overstated. The Tatmadaw, i.e. the military, has agreed to try out a different method of governance (in which a 'civilian' government bears day-to-day responsibility for the country's affairs), but red markers are in place. Political forces are expected to behave responsibly, ensuring that public order and territorial integrity are not jeopardised and no one asks for a full-fledged democracy in a hurry.

A comparison of the joint statement issued after Than Shwe's visit last year and the one released after Thein Sein's visit last week reveals that officials are running out of adjectives to provide a label to bilateral relations. Last year these were described as "a multi-dimensional relationship"; this year's choice is "a multi-faceted relationship." However, expanding contours of relations point to the emergence of a nascent strategic partnership. It is perhaps a matter of time before the two governments decide to call a spade a spade. Myanmar's reiteration of the commitment to Five Principles of Peaceful Existence and to its policy of independence, articulated by Thein Sein, must have been music to New Delhi's ears. India's emphasis on Myanmar's central importance in the region makes Naypyidaw happy. The government's mouthpiece, The New Light of Myanmar, stated in an editorial that the visit opened "a new chapter" for cementing bilateral relations with "high momentum." Delving deeper, two key gains of the visit should be highlighted. The first relates to border security management. A whole mix of negative activities is a constant on the India-Myanmar border. Although Myanmar extends cooperation to India, it is episodic, not sustained, in nature and it is given to a suboptimal degree. This explains the two governments' agreement on "enhancing effective cooperation and coordination" between their security forces in tackling "the deadly menace of insurgency and terrorism." It is hoped that President Thein Sein carried home a clear message and that he would deliver on this score satisfactorily. The second issue relates to ambitious plans to expand economic and development cooperation. It has been agreed to double bilateral trade to $3 billion by 2015. For the first time, a figure was put out, showing the monetary value of the assistance extended by India through various projects in recent years; it is $300 million. What is of the greatest importance - and what also constitutes evidence that South Block is listening to Track II deliberations - is the decision to offer a generous Line of Credit (LoC) amounting to $500 million for new projects. Perhaps Myanmar is heading to join the upper league of Afghanistan and Bangladesh. Ministry of External Affairs (MEA) officials have displayed refreshing candour now by putting a timeline on Weekly Current Affairs 9

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Source: The Hindu dated 22 Oct 2011 Regional Points Bordered by five countries, Myanmar is located in a complex region. Among its external relationships in Asia, China and India rate high importance, besides the Association of South- East Asian Nations (ASEAN). A dispassionate analyst would view the India-Myanmar relationship without 'the prism of China' but also without ignoring 'the China factor.' It is common knowledge that China's political and economic profile in Myanmar is impressive. The two countries are linked through "a comprehensive strategic cooperative partnership," announced in May 2011. Note other reported figures: the total number of Chinese projects: 72; the value of Chinese investments in Myanmar: $16 billion, and bilateral trade standing at $5.3 billion in March 2011. Experts believe that Myanmar has been looking for options, a mindset that drives it to strengthen links with other neighbours and to seek openings with the West. With senior American officials describing recent changes in Myanmar as "dramatic developments" that may be matched by suitable U.S. measures, Myanmar's quest for alternatives could succeed gradually. Meanwhile, India's assistance is already available in generous proportions. Smart Indian companies would do well to speed up matters before they face new competition from American and European companies in case the economy opens up. Let us be clear: Myanmar is important to us for economic as well as politico-strategic reasons. Speaking at an elegant banquet hosted by her, President Pratibha Patil captured India's sentiment aptly as she observed: "When we look eastwards, we first see Myanmar." She stressed that Myanmar occupied "a central place in our vision and approach of rebuilding of our Eastern connections." Toasting her on fruit juice, President Thein Sein used simple words in Myanmar language to convey that his government placed "a special emphasis" on the policy of maintaining good and friendly relations with India. He also expressed "high appreciation" for India's Look East policy. Other Bonds The choice of places visited by the President - Rajghat, the Akshardham Temple, the premises of the Indian Council of Agricultural Research, besides Buddhist pilgrimage sites - has its own story to tell. The shared legacy of

the flagship Kaladan multi-modal transport project. According to them, its riverine part would be ready by June 2013 and road connectivity would be speeded up, thereby bringing the project "on stream" by 2014. Moreover, in choosing new projects, special attention is now accorded to capacity-building and skill development in agriculture, IT, industrial training and health. Last week's joint statement refers to plans of expanding "connectivity" through railway and microwave links, road, air and ferry. Much of this is not new; authorities need to show tangible progress for the sake of their credibility.

Buddhism and many other cultural and ethnic bonds combine to make India and Myanmar special friends. As they accelerate their journey to rediscover each other, they are set to deepen their mutually beneficial cooperation. Hopefully the governments would encourage peoples and their representatives too to come closer. In this context, the big question is: how should New Delhi bring Aung San Suu Kyi into the process of growing engagement between India and her country?

US JOIN INDIA, CHINA ON EMISSION NORMS A unique alliance of countries - India, China, Brazil, the US, UAE, Indonesia and South Korea - has come about against the EU proposal to impose internationally binding targets to reduce emissions for developed and developing countries under a new treaty by 2015. The countries came together to oppose the proposal at the recently concluded talks in Cape Town, a ministerial level consultation just before the formal UN talks on climate change commence in November, to start negotiations for a new treaty that would be signed by 2015. The host country, South Africa, staking all to find a formula that results in 'successful' talks, too backed the offer. The EU has threatened to let Kyoto Protocol die by 2012 unless all countries begin negotiations on a new deal which would break the principle of differentiated responsibilities and impose emission reduction targets for all countries regardless of their economic capacities. They want the deal to be finalized by 2015. Even if developing countries agree to this, EU is only ready to make a mere political statement at Durban in support of Kyoto Protocol and not really put down the deep emission cuts required by it to keep climate change under control. This would skew the talks further in favour of rich countries after two years of compromise by the emerging countries. The US indicated that it would be agreeable to such a proposition only if the emerging economies such as India, China, Brazil and South Africa are brought on absolutely even keel as it on the commitments - an obvious deal breaker from the start considering the four have no legal obligations of this nature under the UN compact. But the US has demanded an equal level of international scrutiny for developing economies. With the US preparing for presidential elections in 2012, it will find it difficult to sell any international climate regime where it takes on targets, especially if China and India are not seen to be taking on similar burdens. India, Brazil, China and UAE made a robust argument against the move, which would run contrary to the existing UN convention as well as the Bali Action Plan. PM Manmohan Singh had already shared the country's position with the IBSA group in his recent meeting. Weekly Current Affairs 10

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ECONOMY
providing broadband connectivity to panchayats at an initial cost of over Rs.20,000 crore, which will help in offering governance, banking and health services online. The project aims to extend the existing optical fibre network, which is available up to district and block levels, to the gram panchayat level, by utilising Rs.20,000 crore from the Universal Service Obligation (USO) Fund. A similar amount of investment is likely to be made by the private sector complementing the NOFN infrastructure while providing services to individual users. As per a study conducted by the World Bank, with every 10 per cent increase in broadband penetration, there is a 1.4 per cent increase in GDP growth. Initially, the broadband project would be executed by the state-owned Bharat Sanchar Nigam Limited (BSNL) and other institutions such as RailTel, Power Grid and the Gas Authority of India. For the implementation and execution the Cabinet has approved the creation of a Special Purpose Vehicle. CABINET NOD FOR 15 MORE MEGA FOOD PARKS The Cabinet Committee on Economic Affairs (CCEA) approved the setting up of 15 new mega food park projects in addition to the 15 ongoing projects under the Infrastructure Development Scheme involving a government grant of Rs.787.50 crore. The setting up of the new mega food parks is expected to facilitate state-of-the-art infrastructure with efficient supply chain management from farm gate to retail outlets. The projects are meant to bring about substantial reduction of wastage, value addition, employment generation and increased income for farmers. The scheme is expected to operate in hub and spoke model under which there will be farm proximate Collection Centres (CC) and Primary Processing Centres (PPC) which will set up cleaning, grading, sorting and packing facilities, dry warehouses, specialised cold stores, including pre-cooling chambers, ripening chambers, mobile precoolers and mobile collection vans. NATIONAL MANUFACTURING POLICY The Union Cabinet gave its approval to the longawaited ambitious National Manufacturing Policy (NMP), which seeks to set up mega industrial zones, create 100 million jobs by 2022 and put India on a par with manufacturing powers such as China and Japan. Further the NMP seeks to enhance the share of manufacturing in the GDP to 25 per cent within a decade. Weekly Current Affairs 11

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It has also deregulated the savings bank deposit interest rate with immediate effect. However, the RBI said, each bank would have to offer a uniform interest rate on savings bank deposits up to Rs. 1 lakh, irrespective of the amount in the account within this limit. For savings bank deposits over Rs. 1 lakh, the banks can provide differential rates of interest, if it so chooses. The monetary policy said that price rise continued to be a major macroeconomic concern. It remained stubbornly high, averaging 9.6 per cent during the financial year so far. Inflation has been broad-based, and driven by all the three major groups, primary articles, fuel and power, and manufactured products. However, the RBI revised downwards the projection of growth rate for 2011-12 to 7.6 per cent from 8 per cent announced in the May Annual Statement and the July Quarterly Review. MSP UP FOR RABI CROPS The Union government announced an increase of Rs. 115 in the minimum support price (MSP) of wheat, which has been set at Rs. 1,285 a quintal for the 2012-13 rabi marketing season. The MSP for the previous year was Rs. 1,170 including a bonus of Rs. 50. The MSP of barley was raised by Rs. 200 to Rs. 980, while that of gram and masur was fixed at Rs. 2,800, marking an increase of Rs. 700 and Rs. 550 respectively over the previous year. The MSP of rapeseed/mustard has been set at Rs. 2,500, an increase of Rs. 650, while the price of safflower has been raised by Rs. 700 and fixed at Rs. 2,500 a quintal. The government had effected generous hikes in the MSP of rabi crops to offset the impact of higher wages and costs of fertilizer, diesel and electricity. CREATION OF NATIONAL OPTICAL FIBRE NETWORK APPROVED The Union Cabinet approved a scheme for the creation of a 'National Optical Fibre Network' (NOFN) for

The Reserve Bank of India in its recent monetary policy has increased the short term indicative policy rate (repo rate) by 25 basis points, with immediate effect, from 8.25 to 8.5 per cent. It is being hoped by the RBI that a further rate hike may not be warranted as inflation is likely to fall in December 2011. This is the 13th hike in policy rate since March 2010, which means the lending rates offered by banks will go up further.

The new NMP rules out any kind of subsidies for units operationg in these manufacturing zones, however, it provides for fiscal incentives to industry, particularly to small and medium enterprises (SMEs) to encourage the manufacturing sector. The NMP will ensure compliance of labour and environmental laws while introducing procedural simplifications and rationalisation so that the regulatory burden on industry was reduced. He said The interventions proposed in the NMP are generally sector neutral, location neutral and technology neutral, except the attempt to incentivise green technology for sustainable development.

passes. It spread as a message of compassion and nonviolence - easily trespassing borders a couple of millennia before social media was conceived in the spacious dorm rooms of Mark Zuckerberg and company. And then, about a hundred years ago, Gandhiji unleashed an idea that galvanised spirits across continents; moved countless hearts and dismantled an empire. There is an arrogance in claiming that globalisation is new, as if we've only just invented it. Every generation feels there is an onus on them to come up with something newer, faster, better. But globalisation doesn't belong to our generation; it is a process that has been going on since the time we first spoke our minds. Like most definitions, this one blurs complexities. Definitions are guides but they are also traps. The term globalisation is like the equally ubiquitous "war on terror". They are both terms that capture everything and nothing at the same time. What is new is the speed with which ideas and people are travelling and coming into contact with each other. Let me give you a small example. What are the similarities and differences between a bullock cart and a car? The most obvious similarity is that they both allow us to move. They both have wheels, axles, seats... But, now for the difference. What separates them is the number of ideas that have coalesced to shape their final form. A car is the product of a larger conglomeration of ideas than a bullock cart. The idea of transport - of getting from one point to another - is revolutionised by the car. So, in this paradigm, high technology is nothing more complicated than a higher density of ideas. Added to the original blueprint of axles and wheels, you now have the combustion of fuel, a drive train, tires with compressed air and even a slot for your iPod. These ideas come from a network of connectivity. The ideas and inputs that went into a bullock cart are all from the same square kilometre of land. The pedigree of the car is far more complex. The rubber probably came from Malaysia, was processed in Germany and assembled in Gurgaon. The metal was mined in Bellary, processed in Japan and imported by a Korean ship. The fuel may have been extracted in Saudi Arabia by European engineers and driven to the petrol pump by a trucker from Punjab. You get what I mean. You think you're sitting comfortably on a car seat, but what you don't realise is you're perched upon a perpetually running global network whose collective memory is expanding explosively. Now, let's move to India. India in 1947 was a different place. There was only one India 60 years ago and it was poor. Almost all of it lived in villages and did not have access to the basic requirements of food and shelter. That India was completely unconnected, both internally and externally. Knowledge was trapped in numerous silos, principal among them a rigid caste system that defined everyone's place in society. The mobility of ideas, people and objects was severely restricted for millennia by that rigid caste system. Even the tools of knowledge and comWeekly Current Affairs 12

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It focusses on domestic value addition, technological depth and environmental sustainability of growth. The NMP aims at creating large integrated industrial townships - National Investment and Manufacturing Zones (NIMZs). CABINET APPROVES HIKE IN INDIA'S IMF QUOTA The Union Cabinet approved a proposal to increase India's contribution to the International Monetary Fund (IMF) quota from 2.44 per cent to 2.75 per cent. The increase will make India the eighth largest shareholder in the multilateral lending agency. Significantly, while India's gain in terms of quota share is the seventh largest in the 14th round of quota review, in absolute terms it will mean an increase from SDR (special drawing rights) 5,821.5 million to SDR 13,114.4 million. In keeping with the demand of emerging nations, including India, for a greater say in the IMF following their increased economic clout after the global meltdown in 2008, all the BRIC (Brazil, Russia, India and China) nations will now figure among the 10 largest quota shareholders in the IMF. CAPITAL INFUSION IN NABARD The Cabinet approved a Rs.3,000-crore capital infusion in Nabard (National Bank for Agriculture and Rural Development) over a two-year period- Rs.1,000 crore in 2011-12 and Rs.2,000 crore during 2012-13. It will help NABARD in mobilising higher resources from the market. With the recent capital infusion the paid-up capital of the apex farm and rural development bank will be raised to the authorised level of Rs.5,000 crore. GLOBALIZATION EXCLUDES AS MUCH AS IT INCLUDES' Globalization is not new. Ideas, objects and people have moved across the world since time immemorial. Two examples: A sermon spoken to an audience of five souls in a deer park in North East India in 600 BC spread across the plains far beyond the park, beyond oceans and mountain

munication were restricted to an elite minority. But India has changed. It has been changing over the last 60 years. It is changing as we speak. We are seeing the birth of a new India, mobile and dynamic. It is an India that is rapidly connecting across social and physical barriers. An India where information is finally beginning to flow. But that does not mean that our success is inevitable. Globalisation excludes as much as it includes. There are millions left out of the process, millions who do not benefit from globalisation and millions more who are damaged by its asymmetric application of power. The local networks that protected them no longer exist. The worker from Kerala who extracts the oil that is the life force of the car, cannot afford to drive it home to his children. Every time you turn your key in the ignition, you are sucking oil out of that well in Saudi Arabia. If there is no oil in that well, you don't have a car - and the man who extracts the oil can no longer feed his children. The farmer in Vidarbha drinks pesticide as global cotton prices tumble. The little tribal boy walks past a housing colony built on top of his home never to set foot in it again.

fathers sleeping on footpaths in new cities. A process accompanied by voiceless women being sold silently in the shadows. The only constant in our world is change - this has always been true. Change challenges the status quo. Our current concepts of justice and rights have been structured for static societies. We must think about how these concepts will need to change with increased connectivity and movement. Take for example the vote, our most basic instrument of empowerment and justice. An instrument that gives India its voice. What does it imply for us as a just nation when we cannot guarantee a migrant seamless access to franchise? The same problem also suggests where the solutions lie - in innovations such as the Unique ID, which allow us to know and therefore guarantee a voice to every individual. Like globalisation, there is another idea that has been around for thousands of years. It is the same idea that was spoken about in the deer park in Sarnath. An idea that has always been the basis of justice and rights, it is the idea of compassion. Compassion comes from understanding that we are all part of the same system - I am you and you are me. Compassion allows us to see that the rights of others are as important as our own. Like change, we must ensure that the idea of compassion is always with us. Source: Indian Express dated 21 Oct 2011

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Let's move to migration for a minute. Migration is converting India from a static, village-based society into a mobile urban one. Today's migration is tremendous and dynamic, but it is a process that leaves people bereft of justice and of rights. It is a process that involves young

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SCIENCE & TECHNOLOGY

quisitions easier. All these are laudable ideas but they have serious implications. Tariffs and free Roaming

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The launch of the Soyuz rocket from Europe's space base Kourou carrying the first two satellites in the Galileo geo-positioning system heralded an unprecedented step in space cooperation between the EU and Russia. It is for the first time that the veteran rocket was launched from beyond the Russia's historic bases at Plesetsk and Baikonur. The launch was a part of a 2003 deal intended to complete Arianspace's marketing range. The deal comprises of 14 Soyuz launches from Kourou, including the third and fourth satellite in the Galileo constellation next year. Galileo is intended to give Europe independence in satellite navigation, a vital component of the 21st-century economy, from the U.S. Global Positioning System (GPS). When completed in 2020, it will comprise 27 satellites and provide accuracy to within a metre, compared to three to eight metres for the GPS. Soyuz is a space legend, for it traces its lineage to 1957 with Sputnik, the first satellite, and to the first manned flight, by Yuri Gagarin, in 1961. The recent launch was the 1,777th in the Soyuz saga. It has a success rate of 94.4 per cent. TINY PLANET WITH WATER ICE DISCOVERED Astronomers have discovered a mysterious dwarf planet named "Snow White", which they believe is covered in ice and may sport the wispy remnants of an atmosphere. The new planet lies outside Neptune and is orbiting the Sun as part of the Kuiper belt- the ring of icy bodies that orbit the sun beyond Neptune. It has been officially named as 2007 OR10 and is red in appearance. SENDING THE WRONG SIGNALS The draft of a new National Telecom Policy (NTP) 2011 was recently released by the Communications Minister, Mr Kapil Sibal. The policy that mobile subscribers should not be charged a roaming fee but that it should be free is meant to highlight the oneness of India. A person is to have the same number, whether he is in his home State or any other State; national number portability has been set as a grand aim. That the issue of spectrum will be delinked from telecom licences and sold transparently through an eauction is, however, a questionable move. According to the draft policy, conditions for companies to exit from service provision will be eased, making mergers and acTrading in Spectrum

AN UNPRECEDENTED STEP IN SPACE COOPERATION

When there is unfettered market competition, with nearly a dozen mobile telephony operators in every State, why should the government offer a zero price for interState roaming? When the mobile service was first launched in 1995, the Department of Telecom (DoT) fixed Rs 16 per minute to be paid by the caller. The called person also had to pay. This was a prohibitive price. No wonder growth was at a snail's pace. People preferred radio paging, where the called person knew he had to call a particular number and often used the nearest phone booth to return the call. The real growth in cell phone subscriptions occurred only after telephone companies were migrated from upfront licence fee payments to revenue sharing in 1999, followed by the entry of the BSNL into cellular mobile services and the discontinuance of tariff setting by the government. Tariffs were left to the companies to set. Competition brought down prices to astonishingly low levels. The one-minute mobile call priced at Rs 16 came down to 30-40 paise. The government's non-involvement in setting prices for competitively provided services worked in favour of the users. Free roaming is very good for subscribers, but it is going to be bad for the service providers. Roaming involves some processing in the network and it has a cost. Once this is abolished the revenues for telcos from this source will fall. They will, therefore, resort to increasing the basic price for mobile telephony. As it is, many companies are providing service at prices below cost. Their profits are dwindling. They are desperately trying to find new traffic through new services over the telephone networks, such as value-added services, access to the Internet, and so on.

A licence without spectrum is meaningless. All telecom services now are being provided through connection over wireless between subscribers and the networks. Would a company getting a service licence have to buy spectrum from somebody else who buys spectrum through an eauction? If, when spectrum is auctioned, there is no condition that only licence-holders must bid, are we creating a situation for trading in spectrum? Would somebody make a wholesale purchase of spectrum and sell it in a secondary market to various licensees? This could be the consequence of delinking spectrum from service licences. Weekly Current Affairs 14

In the US and the UK the allocation of spectrum is only to licensees. It is done not by the government but by the telecom regulator. In the US it is the Federal Communications Commission (FCC); in the UK it is OFCOM. It would be best that in India too, spectrum is sold not by the department headed by a political minister but the regulator, TRAI. In India, telecom has become a lucrative option for rent-seekers, as the sale of telecom licences and spectrum rests with political entities. Hence, the scandals involving colossal amounts of money and widespread corruption. It is therefore desirable that the NTP-2011 recommends handing over the allocation/sale of spectrum from the Ministry to the TRAI. Too many Players

The amount collected was largely misused by governments for populist vote-catching schemes. That mindset still continues. In the Universal Service Fund (USF), upwards of Rs 20,000 crore have accumulated, the use of which is not clear. Little has been done to extend broadband Internet to all schools and colleges and other educational institutions. The new telecom policy must set up a missionoriented R&D enterprise, fully funded from the revenue shares that the government is collecting from the licensed telcos. Any NTP that does not address this issue of promoting indigenous capability will be committing a national crime. Yet another important aspect is the empowerment of users. The TRAI does undertake consultations with users and other stakeholders periodically. But for settlement of users' grievances, it is necessary for it to set up offices in every State capital. It should encourage formation of appropriately constituted telecom users' associations. These should be funded by TRAI/DoT. It is hoped that the Minister will invite, study and seriously consider suggestions made by the stakeholders concerned before finalising the NTP-2011. Source: Business Line dated 22 Oct 2011 NAVIGATING THE MAZE CALLED URBAN GOVERNANCE Who is supposed to manage the city? In whom is vested the responsibility, power and financial muscle to undertake the tasks that keep the city going? These are important questions for which we do not have straight answers in India. The Indian urban governance model has been constructed on the Victorian system of municipalities. The long British rule in India led to the setting up of urban local bodies in various parts of the country. However, right from the beginning, there has always been a lack of clarity on their role, functioning and financing. At times, these organisations were seen as organs of state administration and at times, they were visualised as nurseries of democracy and politics. The existence of the third tier of local government, therefore, was always hazy and nebulous. Firstly, the lack of clarity on the role of municipal bodies has led to their supersession by the state governments in many instances. Secondly, the establishment of parastatal organisations for specific functions has led to an erosion of functional domain. Functions such as water supply are distributed between the irrigation department, water supply and sewerage board and the municipality. Further, the creation of town planning departments has taken away this function from the municipal bodies. Thirdly, the weakening of the finances of municipal bodies on account of improper local tax levies and collection systems have led to a situation where these bodies could not provide the desired level of services. Fourthly, a weak Weekly Current Affairs 15

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There are far too many companies in deadly competition with each other. They are interested in market share, not improving the quality of service. In no country are there more than four or five competing companies providing telecom service in a given area. We should roll back the number of service providers. Regulation must be designed to make mergers and acquisitions attractive and not restrictive, so that no one company has a dominating position in the market. That a licensed company would be able to provide services across the country is another grand idea. The state-owned BSNL is already doing this. The private telcos should be brought on a par with BSNL in this regard. Indigenous Ability One of the most important issues that have not been addressed is the R&D required for production of telecom & IT equipment designed in India, to be produced in India, for deployment in our networks. Before liberalisation, there was some effort in this direction at the Telecom Research Centre and the ITI. The C-DoT was a missionoriented organisation that designed, developed and productionised digital switches deployed in the rural and urban areas for nationwide and international dialling. Almost all telephone companies in India, including BSNL & MTNL, use imported equipment, some of which is assembled in India. Korea and China, which were lagging India till the late 1970s in regard to R&D and indigenous production, have taken giant strides by nurturing indigenous companies, initially with collaboration from foreign companies and simultaneously undertaking indigenous development. China has nurtured two giants ZTE & Huawei, that have developed their own intellectual property and are making equipment sold all over the world, often beating such established giants as Siemens, Nortel, Nokia, CIT Alcatel, NEC in bidding processes. Despite requests year after year, successive Communications Ministers in India have paid little heed to promoting R&D. In the initial years of liberalisation, an R&D cess was imposed on the licensed telecom companies.

executive system has also contributed to inefficiencies in management of day to day activities. The erosion of functional domain, extensive state government control, poor financial health, along with a host of other associated factors, have contributed to the decline of urban local government over the years. Two Developments Two developments have, however, attempted to once again rechart the course of municipal governance; the 74th Constitutional Amendment Act (CAA) and the Jawaharlal Nehru National Urban Renewal Mission (JNNURM). While the CAA envisaged sweeping changes and there was a popular perception that many things would change, the national mission attempted many projects on the ground.

funds for urban renewal and with the infusion of capital, many problems could be sorted out. It has, however, been felt that capacities, or lack of them, rather than capital, is a more pressing issue. More often than not, municipalities do not attract the best talent and therefore lack awareness, perception and skill to undertake the tasks needed. As a result, projects are not prepared in an exhaustive manner and often, the implementation leaves too many gaps leading to the mandated reforms not being achieved. Citizens' attitude too, is marked by apathy. What the tax payer wants at the end of the day is a good level of services which can make his life smooth, if not comfortable. There is little participation by the people in local governance issues. There is no knowledge or use of modern management methods to handle complex tasks of street cleansing, solid waste management, drinking water supply, etc. There is ad hoc task 'fire fighting' rather than a planned strategy for city maintenance. The multiplicity of organisations make the situation incomprehensible to begin with. Secondly, these organisations lack trained 'urban managers'. Often, the tenure of both political representative and the administrator alike is limited and in many cases, never known; it could range from a few months to a few years. Thirdly, each organisation has its own agenda, rather each head of the organisation has a different agenda. Therefore, with a change in the person, the direction of work in the organisation changes. What the predecessor does is undone by the successor. Fourthly, as a result of all this, there is nothing called a comprehensive approach or a strategy as a whole; one is blissfully ignorant of what the other is doing and working at cross purposes becomes an innocent outcome. That is why, perhaps, some roads are never relaid, some others are laid again and again, and still some others are dug up soon as they are laid, apparently to undertake some repair which could have been easily done before! There may not be an easy and ready answer to remedy this overnight. The CAA and the JNNURM were two steps to usher in change for the better. Unfortunately, both these have been inadequate in design, not fully appropriate in content and the people who are supposed to implement them, lacking in capacities to do so. Cities contribute greatly to development of the nation in more ways than one. This significance of urban development is often lost sight of and age old models of municipal governance are being tinkered with. The need of the hour is for a complete overhaul of the systems in place and creation of new models of governance where professional urban managers, not politicians, are given place of prominence in decision making. Unless such a radical step is taken, little improvement in urban governance can be expected.

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Under the CAA, urban local bodies were given constitutional status, a statement of the functions of the local bodies was made, provisions were also made for devolution of funds from central and state revenues and reservations were introduced for women and backward classes. It was widely believed that with this, many things would change. However, despite the completion of nearly two decades, it has still not brought about the changes that were originally envisaged. The reasons for this have been several. Firstly, the provisions of the CAA itself have been inadequate and recommendatory rather than prescriptive, leading to lack of direction. Secondly, it is also understood that state governments are not very keen on sharing powers with the local bodies as their control would diminish. As a result, many functions have not been adequately devolved to the local bodies and continue with the state governments. Out of the 18 functions which were envisaged to be devolved to the local bodies, many states have yet to devolve as many as a dozen. Thirdly, the constitution of district planning committees and metropolitan planning committees for multi-municipal urban agglomerations has also not happened adequately with many states still to comply. Fourthly, the formation of ward committees and their rules of operation also leave many gaps. The varied implementation of the CAA has led to inadequacies in the municipal bodies. Further, the enactment of a public disclosure law and community participation law has also not been very encouraging in most states. In addition, the poor implementation of steps to improve accounting reforms, property tax reforms also leave the municipal bodies more or less in the same inertia. Even where these reforms and changes have been implemented, they have been more in letter than in spirit. Not In Mission Mode The case of the JNNURM has been no different. Here too, the premise has been that cities need large amount of

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2-MARKERS
NEW ZEALAND WINS RUGBY WORLD CUP Host New Zealand defeated reigning champion France to win the rugby World Cup held at Eden Park. New Zealand won the cup for the second time after a gap of 24 years. The Man-of-the-Match was Thierry Dusautoir of France. IPI-INDIA AWARD FOR TEHELKA, THE WEEK The International Press Institute (IPI) - India award for excellence in journalism, 2011, has been awarded jointly to Tehelka and The Week for their outstanding journalistic work in 2010. Tehelka was selected for its expose of the "rent a riot" tactics of the Sree Rama Sene in Karnataka, which admitted taking money to organise attacks on innocent persons and institutions. The Week was selected for an investigation by Gunjan Sharma into sham medical and dental colleges that had no doctors, no patients and no facilities and yet were permitted to award medical and dental degrees to thousands of students. INS KADMATT LAUNCHED The Ministry of Defence has launched the second indigenous Anti-Submarine Warfare Corvettes named INS Kadmatt after an island in Lakshadweep. It has been built by the Garden Reach Ship Builders Engineers Ltd. INS Kadmatt is the second in a series of four Anti-Submarine Warfare Corvettes. The first in the series, INS Karmota, which was launched last year, is expected to be delivered to the Navy in June 2012 followed by INS Kadmatt in March 2013. The ship's main role is to protect other ships in the convoy and sea ports against submarine attack and to neutralise the enemy submarines using her weapons like torpedoes, rocket launchers and helicopter. Besides, the ship has high-stealth features making her "more or less invisible to the enemy above and below the waters.

DHANVANTARI AWARD FOR M.K. MANI M.K. Mani, pioneer in nephrology in the country and Chief Nephrologist at Apollo Hospital, Chennai, has been honoured with the 40th Dhanvantari Award.

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The prestigious award, which recognises contribution in medical science, is awarded annually since 1972. The recipients include Denton A Cooley of Houston and pioneer heart transplant surgeon Christiaan Neethling Barnard of South Africa. A NEW CENTRE OF EXCELLENCE FOR BAJRA To popularize bajra- primary food of the poor- and to ensure food security, the Union Agriculture Ministry has approved Chaudhary Charan Singh Haryana Agricultural University, Hisar, as a Centre of Excellence for bajra. For this purpose Rs. 1 crore has been sanctioned. OBAMA HONOURS INDIAN-AMERICAN ACTIVIST VIJAYA EMANI U.S. President Barack Obama has honoured IndianAmerican activist Vijaya Lakshmi Emani posthumously with the Presidential Citizens Medal for her courage in overcoming and speaking out against domestic abuse in the Indian-American community. The Presidential Citizens Medal is the second highest civilian award of the US government. ABHIJEET GUPTA CLAIMS HIS MAIDEN NATIONAL TITLE Former World junior champion Abhijeet Gupta drew with top seed and defending champion Parimarjan Negi in 41 moves to claim his maiden National chess title at the MIT campus. The title for Abhijeet not only meant a place in the National team for the next one year but also gave him a World Cup berth.

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