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THE
HINDU: A message in Amit Shah
Amit
Shah’s re-election as president of the Bharatiya Janata Party for a full three-year
term had probably been secured in the summer of 2014 itself.
As Prime Minister
Narendra Modi’s closest political aide, one who crafted the campaign in Uttar
Pradesh to contribute 71 of
the State’s total 80 seats and ensure the BJP’s success in getting a clear
majority in the Lok Sabha, he had the organisation’s support and the momentum
to take over the leadership of the party from Rajnath Singh. That momentum may
have been checked after the BJP’s reverses in the Delhi and Bihar Assembly elections, but Mr. Modi’s and, by extension,
Mr. Shah’s control of the party has not been. In Mr. Modi’s BJP, Mr. Shah is
arguably the only claimant to the top post. It is not only that Mr. Shah’s
power draws from his proximity to Mr. Modi; it is, more importantly, that Mr.
Shah’s exercise of power as BJP president is seen, among the wider public and
within the Sangh Parivar, to be in conjunction more with 7 Race Course Road,
the prime ministerial establishment, than with 11 Ashoka Road, the party
headquarters. Indeed, the perfect fit of the Mr. Modi-Mr. Shah partnership is
seen in their joint messaging, with Mr. Modi playing the development-oriented
patriarch and Mr. Shah
bringing up the majoritarian Hindutva mobilisation and agenda.
Mr. Shah’s first challenge will be to reverse the impression of a party
unable to stare down a fast-uniting opposition, as was
seen in Bihar. The BJP faces a batch of important Assembly elections in
2016, and just about a year from now Uttar Pradesh must go to elections. That
election may well bring the BJP full circle from the triumph of 2014, and its
success or failure in replicating the Lok Sabha sweep in the State Assembly
could set the mood for the lead-up to the 2019 general election. Mr. Shah is
given to showcasing his achievement in increasing the party’s membership
three-fold to more than 100 million. But the proof of success would obviously
lie in electoral victories. And the BJP appears visibly lost for an effective
strategy. After the debacles
in Delhi and Bihar,
embarrassing for also having been fought in Mr. Modi’s name, it must decide
whether to revive the practice of declaring chief ministerial candidates, and
thereby surrender poster space away from the Prime Minister. More importantly,
the party must take stock of the message it gives to rally its base and keep
new voters interested. The softly played polarisation of 2014 under the
overarching development rhetoric, had by Bihar given way to outright Hindutva
mobilisation. Ministers have added their voice to communally divisive comments
by Sangh rabble-rousers. In contrast, top leaders in the government and the
party have remained silent on hate crimes such as the lynching at Dadri. How Mr. Shah
oversees an appraisal of the party’s message and mobilisation must be judged
not only by the electoral outcome, but also by its conformity to constitutional
principles.
claim·ant
A person making a claim, especially in a lawsuit or for a
government-sponsored benefit.
pa·tri·arch
The male head of a family or tribe.
tri·umph
A great victory or achievement.
polarisation
Polarization: the condition of having or giving polarity
o·ver·see
Supervise (a person or work), especially in an official capacity
ap·prais·al
An act of assessing something or someone.
THE HINDU: Denmark’s absurd
law on refugees
The
passage of a law by the Danish Parliament that allows the authorities toconfiscate
valuables from refugees is
the latest blow to those seeking asylum in Europe. Denmark’s centre-right
government says the legislation is intended to cover the cost of each
asylum-seeker’s treatment by the state, and bring refugees in line with
unemployed Danes who also have to give up their savings before they receive
welfare benefits. But the reality is starker than what the government claims.
The Danish move is in line with the hawkish stand several European governments are taking
towards asylum-seekers.Earlier in the month, Switzerland started seizing
valuables from refugees to help pay for their “upkeep”. Last week, Germany’s
southern states, including Bavaria, adopted similar policies. Most of those
seeking asylum in Europe are fleeing war, mass crimes and rapes. Some of them
make perilous boat journeys across the Mediterranean to reach the shores of
Europe. Some pay huge sums to people smugglers to get themselves out of their
war-devastated nations. And they go to Europe seeing the relatively prosperous
and secure continent as their last hope to find a place to rebuild their
shattered lives. These are the people the European governments are seizing
valuables from.
Yet, these moves are not surprising given the response of several
European leaders to the refugee crisis. To be sure, Europe is facing the biggest
migrant crisis since the
Second World War. In 2015 alone, more than 850,000 asylum-seekers landed in
Greece, from where most of them moved to other European countries through the
open borders. But instead of coming up with a bold pan-European plan to address
the issue, the European leadership let member-states have their way. Hungary has already sealed its
boundaries to stop the entry
of refugees. The Hungarian Prime Minister has, in fact, given a call to wall
off Greece from the rest of Europe to prevent the movement of refugees. Several
Balkan leaders have recently demanded the same. How can confiscating assets
from the already vulnerable refugees and blocking them at the borders help
address one of the greatest humanitarian crises of our time? How can Europe,
known for its human rights-driven, combative foreign policy, treat the victims
of wars as mere intruders? Besides the ethical arguments, Europe also bears
some amount of direct responsibility in this crisis. Most of the refugees
reaching the continent are fleeing Syria and Libya. In Syria, besides helping
rebels in the civil war that has destabilised the country, European nations,
particularly France and Britain, are waging a bombing campaign. In Libya,
France was in the forefront of an invasion that has thrown the country into
chaos. And when the people fleeing these countries reach its shores, Europe
cannot just turn its back on them. Instead of building walls and seizing assets
from the refugees, what Europe actually needs is an effective resettlement plan
at home, while pushing for peace and stability in the war-hit countries.
a·sy·lum
The protection granted by a nation to someone who has left their native
country as a political refugee.
stark
Severe or bare in appearance or outline.
hawkish
Militant: disposed to warfare or hard-line policies; "militant
nations"; "hawkish congressman"; "warlike policies"
per·il·ous
Full of danger or risk.
con·fis·cate
Take or seize (someone's property) with authority.
vul·ner·a·ble
Susceptible to physical or emotional attack or harm.
in·trud·er
A person who intrudes, especially into a building with criminal intent.
INDIAN
EXPRESS: No small trouble
Even
as RBI Governor Raghuram Rajan is set to present his next bi-monthly monetary
policy review early next week, there is increased focus on what is to be done
with the interest rates on small savings instruments like the public provident
fund (PPF), the national saving certificate or the new Sukanya Samriddhi
Account Scheme (SSAS). Currently, there’s a significant gap between the rates
paid on these — ranging from 8.7 per cent for PPF and 9.2 per cent for SSAS —
and the 7-7.5 per cent banks give on deposits or the 7.8 per cent yields on
10-year government bonds. The economic case to align the administered rates on
small savings with the rates prevailing in the market is obvious. Such a gap
essentially incentivises people to put their money in the small savings
instruments, while making it difficult for banks to reduce deposit rates and,
in turn, lower lending rates that are much needed in the current
investment-starved economic environment.
Over
the last year, the RBI has cut its policy rates by 125 basis points, whereas
banks have on average reduced their lending rates by just half of that.
Economists are not wrong in pointing out that the high administered rates for
small savings — in relation to both market rates and CPI inflation — act as
effective impediments in the “transmission” of the RBI’s monetary policy
signals. To that extent, any further repo rate cuts — even assuming it happens
on February 2 — will have only a limited impact on what companies and
individuals would pay for their loans from banks. One could also very well
argue that the overall gains to the economy from lower interest rates will far
outweigh benefits to small savings deposit holders, who are today receiving
real interest rates of 3 per cent after adjusting for inflation. They will
continue receiving inflation-beating returns even if rates on PPF deposits are
cut by 1 per cent. But selling this politically is another thing.
What
can be done? Ideally, the government should follow the report of the Shyamala
Gopinath committee that, in 2011, had suggested fixing small savings rates
based on “a positive spread of 25 basis points, vis-a-vis government securities
of similar maturities…” One way to make it politically more palatable could be
to retain the current rates only for deposits below a certain limit. But
ultimately, this is a political call the government cannot delay too long. It’s
unlikely to encounter much resistance here from states, which are less reliant
on small savings collections following the Centre’s decision to devolve an
increased share of its tax revenues.
im·ped·i·ment
A hindrance or obstruction in doing something.
pal·at·a·ble
(of food or drink) pleasant to taste.
de·volve
Transfer or delegate (power) to a lower level, especially from central
government to local or regional administration
BUSINESS STANDARD: Rafale deal: An expensive buy
A highlight of French
President Francois Hollande's India visit was the signing of a
government-to-government agreement on the purchase of two squadrons of the
Rafale multi-role fighter aircraft. But continuing price negotiations, already
protracted, stand in the way of a formal contract. It bears recalling that the
Rafale offer from Dassault was chosen over rival bids exactly four years ago,
in January 2012. That was to have been a contract for 126 aircraft, of which
the first 18 were to have been handed over by 2015, with the rest being
assembled or made locally. Instead, the rapidly rising cost of the aircraft
(deliberately under-stated by Dassault) forced the government last year to
cancel the deal as unaffordable, and to decide on buying just two squadrons,
without any condition for local assembly or manufacture. Prime Minister
Narendra Modi had announced that the new, restricted deal would be concluded in
about three months; but negotiations continue even after nine months. The cost,
meanwhile, has ballooned to an astronomical $250 million per plane (about Rs
1,700 crore). That is equivalent to the cost of perhaps three or four heavier
Su-MK30 planes from Russia, and about 10 of the home-made Tejas light combat
aircraft (quoted price: Rs 162 crore). In truth, therefore, the Rafale
continues to be unaffordable. The implication of buying a very expensive
aircraft is that it will eat up a good chunk of the defence acquisition budget,
leaving less money for other badly-needed equipment-for all the forces.
One reason for why the government is sticking with the Rafale may be that the air force is short of fighters, and inordinate time has already been invested in the purchase process. Arguably, the air force could simply buy many more Su-MK30s and scrap the Rafale deal. Two factors mitigate against this: the poor serviceability of the Russian plane (frequent engine failures, with barely half the 200-odd Sukhois air-worthy at any given time), and the poor logic in deploying heavy, fuel-guzzling planes in situations where smaller, lighter ones are better suited for the job. Fortunately, Defence Minister Manohar Parrikar has focused on improving Sukhoi serviceability through new deals on maintenance or spare parts which could improve engine life and cut down maintenance delays. Meanwhile, Hindustan Aeronautics is said to be expanding its servicing capabilities.
The high cost and poor serviceability of foreign aircraft (with long-term dependence for the supply of critical spare parts) underline the importance of developing indigenous capabilities. An important issue here is the reluctance on the part of the air force brass to invest time and energy in supporting the indigenisation process-a contrast with the navy's more productive stance. The air force brass has been quizzical of the Tejas light-combat aircraft project, at a time when replacements for the ageing MiG-21s are urgently required. Indeed, the air force has been so sold on the Rafale that it has even obfuscated on the joint project with the Russians to develop a fifth-generation fighter aircraft. Again, Mr Parrikar seems to have banged heads together, because the Indian Air Force and Hindustan Aeronautics have now agreed on the improvements that will be made to the Rafale (to improve its survivability and also ease of maintenance), following which orders for 100 aircraft will be placed. It is now up to HAL to ensure that it delivers on time and with the quality required.
One reason for why the government is sticking with the Rafale may be that the air force is short of fighters, and inordinate time has already been invested in the purchase process. Arguably, the air force could simply buy many more Su-MK30s and scrap the Rafale deal. Two factors mitigate against this: the poor serviceability of the Russian plane (frequent engine failures, with barely half the 200-odd Sukhois air-worthy at any given time), and the poor logic in deploying heavy, fuel-guzzling planes in situations where smaller, lighter ones are better suited for the job. Fortunately, Defence Minister Manohar Parrikar has focused on improving Sukhoi serviceability through new deals on maintenance or spare parts which could improve engine life and cut down maintenance delays. Meanwhile, Hindustan Aeronautics is said to be expanding its servicing capabilities.
The high cost and poor serviceability of foreign aircraft (with long-term dependence for the supply of critical spare parts) underline the importance of developing indigenous capabilities. An important issue here is the reluctance on the part of the air force brass to invest time and energy in supporting the indigenisation process-a contrast with the navy's more productive stance. The air force brass has been quizzical of the Tejas light-combat aircraft project, at a time when replacements for the ageing MiG-21s are urgently required. Indeed, the air force has been so sold on the Rafale that it has even obfuscated on the joint project with the Russians to develop a fifth-generation fighter aircraft. Again, Mr Parrikar seems to have banged heads together, because the Indian Air Force and Hindustan Aeronautics have now agreed on the improvements that will be made to the Rafale (to improve its survivability and also ease of maintenance), following which orders for 100 aircraft will be placed. It is now up to HAL to ensure that it delivers on time and with the quality required.
squad·ron
An operational unit in an air force consisting of two or more flights of
aircraft and the personnel required to fly them.
pro·tract
Prolong.
dassault
Dassault Group is a French group of companies led by Serge Dassault. It
was established in 1995. Managing directors are Claude Dassault and Olivier
Costa de Beauregard.
in·or·di·nate
Unusually or disproportionately large; excessive.
re·luc·tance
Unwillingness or disinclination to do something.
indigenisation
Indigenization is a term that is used in a variety of ways depending on
the context. The term is primarily used by anthropologists to describe what
happens when locals take something from the outside and make it their own
quiz·zi·cal
(of a person's expression or behavior) indicating mild or amused
puzzlement.
ob·fus·cate
Render obscure, unclear, or unintelligible.
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