#EVERYDAYQUIZ #THE HINDU #BUSINESS STANDARD #THE DAWN(PAK) #INDIAN STANDARD #NEWYORK TIMES
THE
HINDU: Unreasonable demands
The
recurrence of violent protests led by relatively well-off communities demanding
reservation, be it Patidars in Gujarat last year or Jats in Haryana this
year, is perplexing.
The Jats are a relatively prosperous land-owning community in
Haryana and are regarded as
being high on the “social ladder” in the region. Their political and social
might is even more evident in the influence they wield in rural areas and in
the leadership of the dominant political parties in the State. The National
Commission for Backward Classes had in the past come out with specific reasons
against the inclusion of the Jats in Haryana in the Other Backward Classes
(OBCs) list. This was overruled by the Congress-led United Progressive Alliance
government at the Centre through a notification in March 2014, promising a
special quota for Jats over and beyond the 27 per cent reservation for OBCs in
jobs and higher education. It was left to the Supreme Court in March 2015 to reiterate the reality and to quash the
decision of the UPA to include Jats in nine States among OBCs, stating that
“caste” alone could not be the criterion for determining socio-economic
backwardness. Clearly, even if the demands do not make any constitutional or
legal sense, the bipartisan consensus over extending reservations has
emboldened protestors among the Jat community. After all, the Bharatiya Janata
Party in power too had voiced support for the implementation of the March 2014
notification.
Yet,
the demands for reservations from these powerful communities is also a
consequence of the success of the system of reservations that formed the most
significant component of the Mandal Commission recommendations, implemented for
the past 25 years, apart from the 65 years of reservations for Dalits and
Adivasis. The larger goal went beyond the uplift of the underprivileged and the
historically backward; the purpose was to reduce the gap between the “upper”
and the “lower” strata in the social hierarchy. That communities which have
identified themselves with the upper strata of society also seek “backward”
status suggests that through public sector representation and expansion in
access to higher education the “economic gap” has been narrowed, or is at least
seen to be narrowing. Specifically in the case of Jats, despite higher economic
and social standing, there has been a reduction in landholding owing to
distribution over generations and a squeezing of rural incomes due to the
persisting sluggishness in the agrarian economy. It is a combination of these
structural issues over time, besides the relative success of the reservation
programme, that has fuelled the unreasonable demands made by Jats. In the case
of the
more prosperous and diverse Patidars in Gujarat, the demands for
reservation were a thin pretext to do away with the system of reservation
itself. The agitations, in a way, point to the need to review the list of
castes counted as OBCs and to deepen the definition of creamy layer. An
opportunity for this was provided through the Socio-Economic and Caste Census,
but it was missed.
well-off
rich
per·plex·ing
Completely
baffling; very puzzling.
wield
Hold and use (a
weapon or tool).
em·bold·en
Give (someone)
the courage or confidence to do something or to behave in a certain way.
sluggishness
Lethargy: a
state of comatose torpor (as found in sleeping sickness)
THE HINDU: Delivering on Make
in India
In its
last 18 months, the UPA government faced up to an economic reality: new
investments had come to a halt and projects worth lakhs of crores of rupees
caught in red tape were turning unviable, posing a threat to banks that had
lent for them. The then Prime Minister, Manmohan Singh, heeded Finance Minister
P. Chidambaram’s concern about the impact on public sector banks if these
projects were not brought back on track through high-level intervention. When
the NDA government assumed office, it found that the mechanism that Dr. Singh
had approved to fix the problem — a project monitoring group in the Cabinet
Secretariat to steer around roadblocks to big-ticket manufacturing and
infrastructure projects — had helped clear projects worth Rs.6.5 lakh crore. In
June 2014, the Prime Minister’s Office asked the group to ascertain if the
projects it had helped had begun operations. The PMO wanted to know if more
chimneys were billowing smoke, if production was going up and jobs were being
created on the ground. Three months later, the government launched its Make in India programme to encourage the world to use the
country as a global production hub. It promised reforms on norms for foreign
direct investment — many of which it subsequently delivered — and a fix for
problems that gave the country a poor reputation among foreigners, including
unpredictable tax policies and a difficult regulatory environment.
Over
the last week, about 1,000 CEOs and 4,000 delegates representing 2,000 overseas
firms were in Mumbai at a glitzy event to showcase Make in India, which
Prime Minister Narendra Modi presented as the biggest brand to emerge from the
country. He said India was adding deregulation to its strengths of democracy,
demography and demand, and promised to end retrospective taxation that had
spooked investors during the UPA rule. The Industries Ministry has claimed that
Rs.15.2-lakh crore worth of investments were committed at the event. These
include some by foreign firms such as Oracle (Rs.2,749 crore) and Ascendas
(Rs.4,571 crore), but the list is dominated by Indian players making
announcements to coincide with the occasion, including a Rs.6,204-crore project
by public sector undertaking Rashtriya Chemicals and Fertilizers. Instead of
doubting the numbers, it may be more pertinent to focus on two other
developments of the week. Authorities served Vodafone a reminder for tax, which
warned of asset seizure in case of failure to pay the dues, prompting a sharp
reaction from the British firm. It also emerged that Foxconn was yet to follow
through on a $5-billion investment it had announced in Maharashtra last August.
To capitalise on the success of Make in India, the government must now show
sustained improvement on the ease of doing business and create a transparent
and stable tax environment to prove it is capable of delivering on its intent.
It should use the same yardstick to measure Make in India’s success as it did
for the earlier stalled projects: would products start rolling out of factory
gates anytime soon?
halt
Bring or come
to an abrupt stop.
un·vi·a·ble
Not capable of
working successfully; not feasible.
spook
Frighten;
unnerve.
co·in·cide
Occur at or
during the same time.
stall
(of a motor
vehicle or its engine) stop running, typically because of an overload on the
engine.
BUSINESS STANDARD: Pro-manufacturing
laws need of the hour
The 'Make in India' Week in Mumbai, which ended
last Thursday, served as a welcome platform for states to make their cases for
being business-friendly destinations to investors. Seventeen states had
pavilions at the exposition centre in the Bandra-Kurla Complex, and several had
special seminars. Chief ministers of states including Gujarat, Odisha, Haryana,
Andhra Pradesh, Chhattisgarh and Jharkhand were present. It is unfortunate
perhaps that most of the chief ministers from states not ruled by parties in
the National Democratic Alliance did not turn up - the leaders of Tamil Nadu,
Uttar Pradesh and Karnataka, all large states seeking investment, were not present.
However, most states that were present did indeed make many ambitious
announcements - there was news of several new collaborations and plans for
manufacturing projects. This spurt of activity should certainly help in
reviving a sector that had slowed considerably. The states subsequently issued
statements adding up the notional value of promised investments. The total
investment promised, if these promises are taken seriously, would amount to Rs
15.2 lakh crore, with the host state of Maharashtra accounting for Rs 8 lakh
crore out of that. However, the proportion of such promises that fructify
depends crucially on whether investors believe that a genuinely
business-friendly environment has been created. In the past, only a small
fraction of such memoranda of understanding has turned into actual investments.
Indeed, as this newspaper has reported, even as the number of industrial
investment proposals made in 2015 went up by eight per cent over that in 2014,
the value of such investment proposals has declined by 23 per cent in the same
period.
It is unfortunate, therefore, that in spite of assurances given to investors at the 'Make in India' Week that a stable business-friendly environment has indeed been created, the tax office chose the precise time of this important exposition to send a threatening notice to Vodafone about a tax demand that is currently in arbitration. This action, coming as it did at a time when senior leaders of the government were assuring investors that "tax terrorism" was a thing of the past, should serve to remind all concerned that no amount of assurances can take away the need for genuine and deep-seated reforms to institutions and governance. The overall impact of the 'Make in India' Week will be positive going forward if it also provides a similar energy to the governments deregulation and reform efforts. Both states and Centre need to do more in this respect.
There is an entire gamut of manufacturing-friendly policies that states and Centre need to work on. The Centre has unfortunately put labour market reforms on the back burner, although some states have been freed to move forward. However, a patchwork of state-level laws is not the same for manufacturers as simplified national regulations. Other factor markets too need to be reformed. Land availability is in many places a genuine problem. The Centre has abandoned its amendment to the land acquisition law that was meant to make acquisition for public purpose easier. However, it should at least work - as should states - towards a functional free market for land perhaps through relaxations in land leasing laws. The focus on infrastructure is welcome, but should be accompanied by deregulation that allows infrastructure to be properly used. New highways are not that useful if outdated laws keep trucks waiting at inter-state border; new ports will not help if turnaround times remain slow thanks to excessive red tape. And, finally, as the Vodafone issue shows, reform of the tax department and making it less arbitrary and confrontational is long overdue.
It is unfortunate, therefore, that in spite of assurances given to investors at the 'Make in India' Week that a stable business-friendly environment has indeed been created, the tax office chose the precise time of this important exposition to send a threatening notice to Vodafone about a tax demand that is currently in arbitration. This action, coming as it did at a time when senior leaders of the government were assuring investors that "tax terrorism" was a thing of the past, should serve to remind all concerned that no amount of assurances can take away the need for genuine and deep-seated reforms to institutions and governance. The overall impact of the 'Make in India' Week will be positive going forward if it also provides a similar energy to the governments deregulation and reform efforts. Both states and Centre need to do more in this respect.
There is an entire gamut of manufacturing-friendly policies that states and Centre need to work on. The Centre has unfortunately put labour market reforms on the back burner, although some states have been freed to move forward. However, a patchwork of state-level laws is not the same for manufacturers as simplified national regulations. Other factor markets too need to be reformed. Land availability is in many places a genuine problem. The Centre has abandoned its amendment to the land acquisition law that was meant to make acquisition for public purpose easier. However, it should at least work - as should states - towards a functional free market for land perhaps through relaxations in land leasing laws. The focus on infrastructure is welcome, but should be accompanied by deregulation that allows infrastructure to be properly used. New highways are not that useful if outdated laws keep trucks waiting at inter-state border; new ports will not help if turnaround times remain slow thanks to excessive red tape. And, finally, as the Vodafone issue shows, reform of the tax department and making it less arbitrary and confrontational is long overdue.
spurt
Gush out in a
sudden and forceful stream.
no·tion·al
Existing only
in theory or as a suggestion or idea.
fruc·ti·fy
Make
(something) fruitful or productive.
ar·bi·tra·tion
The use of an
arbitrator to settle a dispute.
gam·ut
The complete
range or scope of something.
a·ban·don
Give up
completely (a course of action, a practice, or a way of thinking).
red
tape
official rules and processes that seem unnecessary and delay results
ar·bi·trar·y
Based on random
choice or personal whim, rather than any reason or system.
con·fron·ta·tion·al
Tending to deal
with situations in an aggressive way; hostile or argumentative.
o·ver·due
Not having
arrived, happened, or been done by the expected time.
INDIAN EXPRESS: Pandora’s phone
The FBI wants Apple
to make it easier to hack into the iPhone of Syed Farook, the organiser of
December’s San Bernardino shooting, who has taken its passcode to the grave
with him. Apple is right to challenge it, but the case has generated masses of
speculation and disinformation, which must be pared away from the truth before
one understands why. Security specialists are protesting that Apple has
unlocked phones and extracted their contents for the government before, so why
not now? Because Apple fortified the iPhone’s security in 2014. It now offers
three barriers to hackers: It holds data encrypted, so all that Apple can
extract from an unopened phone is gibberish, and besides, it repels brute force
attacks to open the phone by introducing a delay between password inputs and by
locking up after a number of failures.
But it appears that
Apple has left a physical security hole: A phone can boot a new operating
system or ROM without permission. Now, if Apple gives them a ROM with the code
for security features commented out, the FBI can boot Farook’s phone, crack the
password with a brute force attack by a supercomputer and decrypt its contents
without the fear of being locked out. What’s the problem, if this helps to
solve a terrorist incident? Security agencies have been protesting for years
that computer firms want to sell electronic boxes which only the user can open.
Farook’s iPhone is one such part of the thriving business of privacy.
The problem is that
this is only revisiting the backdooring debate via a new route. Barack Obama has resisted
demands for a law requiring manufacturers to build a back door into their
electronic boxes which government agencies can amble in through to browse
private data, but future presidents may buckle. India briefly engaged with this
question when it sought access to Blackberry traffic in 2012. Since this is
India, the end was quick and dirty. There is a difference between compromising
security by a technical stratagem — a cheat which can be replicated endlessly —
and seeking data from a specific device by court order. If Apple wrote an
unsecured ROM for unlocking Farook’s phone, it could be used in future to
unlock any phone. Worse, if it leaked into the wild or was stolen, the personal
data of every iPhone user would be compromised. The consequences would be
devastating.
Hack
to get into someone
else's computer system without permission in order to find out information or do something illegal
pared
to reduce something, especially by a large amount
for·ti·fy
Strengthen (a
place) with defensive works so as to protect it against attack
gib·ber·ish
Unintelligible
or meaningless speech or writing; nonsense.
re·pel
Drive or force
(an attack or attacker) back or away.
brute
A savagely
violent person or animal.
thrive
(of a child,
animal, or plant) grow or develop well or vigorously
am·ble
Walk or move at
a slow, relaxed pace.
buck·le
A flat,
typically rectangular frame with a hinged pin, used for joining the ends of a
belt or strap.
strat·a·gem
A plan or
scheme, especially one used to outwit an opponent or achieve an end.
con·se·quence
A result or
effect of an action or condition.
dev·as·tat·ing
Highly
destructive or damaging.
THE DAWN(PAK) Lifting of Iran sanctions
MORE than a month after most other countries in the world lifted
sanctions against Iran, Pakistan has finally followed suit. It is a welcome
step, even if it appears to have been reluctantly taken and has come rather
late. As a contiguous neighbour, Pakistan ought to have moved faster and deeper
down the road to restoring normal economic ties with Iran than most other
countries. This is especially true given the natural complementarities between
the economies of the two countries. Iran has a surplus of energy but is food
deficient, while Pakistan is food secure but energy deficient. Nevertheless,
the fact that our own raft of sanctions, mostly issued through the Foreign
Office, has now been lifted has cleared the way for parties on both sides to
start re-engaging with one another. And this is precisely the point where the
road towards the resumption of normal economic ties comes into view before us.
That
road, it is becoming increasingly clear, is longer than what most might
envisage. Even the act of lifting our own sanctions against Iran proved
slightly more complex than imagined. The step was undertaken on prodding from
the Iranian side during the prime minister’s visit to Tehran last month, at the
time the UN Security Council endorsed the nuclear deal through Resolution 2231.
The language of the draft notification issued by the Foreign Office to lift
Pakistan’s sanctions then had to be vetted by various stakeholders within the
government, such as the ministries of defence and law and the State Bank. This
process could have begun sooner, considering that the IAEA had confirmed Iran’s
compliance with the terms of the nuclear deal as early as Dec 2, 2015.
Now
that the lifting of the sanctions has been notified by the Foreign Office, the
hard part of actually rebuilding economic ties can commence. No further legal
obstacles stand in the way of private-sector parties to start engaging with the
neighbouring economy, but significant logistical obstacles still remain. Banks
need to build counterparty arrangements with Iranian banks so LCs can be
processed, the road linkages need to be upgraded significantly to handle the
clearing of containerised cargoes, and a clientele needs to be developed by
traders on either side of the border. A visa regime needs to be developed that
will facilitate a growing and thriving trade relationship through easier visa
rules and by enhancing people-to-people contact. In time, air and rail links
must be expeditiously built as well. The road to a $5bn trade relationship is
still a long one, and much work remains to be done. The private sector can be
counted on to step up to the opportunities that will come its way, but at the
moment it is the government that must shed the impression that it is being
dragged reluctantly to the finish line.
con·tig·u·ous
Sharing a
common border; touching.
de·fi·cient
Not having
enough of a specified quality or ingredient.
Raft
Many
re·sump·tion
The action of
beginning something again after a pause or interruption.
en·vis·age
Contemplate or
conceive of as a possibility or a desirable future event.
prodding
to encourage someone to take action, especially when they are being slow or unwilling
vetted
to examine something or someone carefully to make certainthat they are acceptable or suitable
com·pli·ance
The action or
fact of complying with a wish or command.
com·mence
Begin; start.
expeditiously
Efficiently
drag
Pull (someone
or something) along forcefully, roughly, or with difficulty.
reluctantly
With reluctance
THE
NEWYORK TIMES: Slave Labor on the High Seas
Shocking revelations about
the international fishing industry’s reliance on slave labor have caused many
people to question the origin of the shrimp or tuna they eat. The disclosures
have also led the United States to take some important new steps to
clamp down on the use of indentured workers and discourage other unlawful
activities on the high seas.
President Obama is expected
to sign legislation that effectively bans American imports of fish caught
by forced labor in Southeast Asia. The bill, passed by Congress this month,
would close a loophole in the Tariff Act of 1930 that prohibits imports made by
convicts or forced labor but exempts such goods if American domestic production
could not meet demand. Now that is expected to end. The president recently
signed an agreement allowing officials to deny port services to foreign vessels
suspected of illegal fishing.
In another useful move, the
National Oceanic and Atmospheric Administration this month said it
would improve how seafood is tracked from catch to market by imposing new
reporting requirements on American importers, who purchase from overseas
sources 90 percent of the seafood that humans and pets consume in the United
States. These new requirements would affect 16 species, including cod, snapper
and some tuna, and are intended to protect species that are overfished or at
risk of being overfished by cracking down on illegally caught or mislabeled
fish.
Meanwhile, two international
trade unions have filed a complaint with the United Nations labor agency about
seafood from Thailand processed by slave workers. The Thai government said it
was installing satellite tracking devices on fishing ships and requiring
additional reporting of which workers get on and off ships. These and even
stronger reforms are urgently needed to respond to the dark side of a
multibillion-dollar industry that employs more than 650,000 people in Thailand
alone. Thailand has long been judged by the State Department to be one of the
worst slave labor offenders.
A series in 2015
by The Times’s Ian Urbina provided searing details about forced labor
on Thai boats and chronicled the lives of several dozen Cambodian migrants,
most of them boys, who worked on the ships but are now free. As the series made
clear, lawlessness on the high seas goes beyond slave labor and illegal
catches. Murders are committed with impunity, ships dump huge quantities of oil
and sludge, and gunrunning is frequent. These problems are interrelated and
must be addressed in a comprehensive way.
The new American reforms can
help correct some of these problems if they are rigorously enforced. The
publicity the issue has been getting has led to pressure from consumers and
activists on importers and wholesalers to be more diligent in identifying their
suppliers, but there are questions about whether the government of the United
States and those of other countries are fully committed to the task. The most
potent advocates for change may be educated consumers.
dis·clo·sure
The action of
making new or secret information known.
to clamp down
a sudden action taken by a government or people in authority to stop or limit a particular activity
indentured
relating to an official agreement that someone will work for someone else for a
length of time, especially in order to learn a job
loop·hole
An ambiguity or
inadequacy in the law or a set of rules.
cracking down
to start dealing with bad or illegal behaviour in a more severeway
on and off
happening or existing only some of the time
im·pu·ni·ty
Exemption from
punishment or freedom from the injurious consequences of an action.
gunrunning
The smuggling
of guns and ammunition into a country secretly and illegally
rig·or·ous
Extremely
thorough, exhaustive, or accurate.
dil·i·gent
Having or
showing care and conscientiousness in one's work or duties.
_ / \_ sir
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