#EVERYDAYQUIZ #THE HINDU #THE BUSINESS STANDARD #THE INDIAN EXPRESS #THE DAWN #THE GUARDIAN #rEAD DAILY
THE HINDU: Blow for reformists in Iran
Final
results from Iran’s February 26 elections to Parliament and the clerical body,
the Assembly of Experts, show that the moderates have clinched a resounding
political victory. In the 290-seat Parliament, the reformist allies of
President Hassan Rouhani won at least 85 seats, while the moderate
conservatives secured 73 seats.
Together they will control the House. The
hardliners, who were steadfastly opposed to Mr. Rouhani’s reform agenda, won
only 68 seats. In the 88-member Assembly of Experts, the clerics backed by
reformists and centrists claimed 52 seats. This is not the first time Iranian
voters have spoken their mind against the hardliners. For the last many years
they have consistently pushed reformist or less conservative candidates through
Iran’s rigid electoral process. Still, last week’s twin elections were highly
significant for Iran’s polity in general and Mr. Rouhani in particular for a
number of reasons. This was the first election after Mr. Rouhani secured the
historic nuclear deal with world powers last year, ending the country’s
isolation in return for giving up its nuclear programme. The hardliners were opposed to the nuclear deal. Even the Supreme
Leader, Ayatollah Ali Khamenei, had warned the political leadership several
times against any rapprochement with the West. The hardliners had also opposed
Mr. Rouhani’s plans to open up the country’s economy and reach business deals
with overseas companies, including those from the West.
Had
the moderates suffered an electoral setback, it would have been a major blow to
Mr. Rouhani’s reform agenda. It would also have cast a shadow on his
re-election prospects next year. Now it is evident where the popular support
lies. And with his allies controlling Parliament, the President could push his
legislative and economic agenda at ease. Second, the election of more moderate
candidates into the Assembly of Experts than hardliners is a significant
achievement for the reformist movement. The Assembly is an important clerical
body in Iran’s Islamist establishment which can, technically, choose the next
Supreme Leader. If the clerics elected to the body work in coordination with
the moderate politicians, that could change the balance of power in Iran’s
complex polity. However, to anticipate any dramatic change in the system would
be overriding the mandate. Those who call for rapid improvement in the human
rights situation in Iran and for the weakening of the role of the clergy in
politics will continue to be disappointed. The system is too complicated, with
direct checks on the powers of everyone but the Supreme Leader. As long as the
Supreme Leader backs the hardliners, Mr. Rouhani is unlikely to take any
radical initiatives. Nevertheless, the election results represent a clear step
forward in Iran’s gradualist transformation from a rigid Islamist theocracy
into a broader religious democracy. Mr. Rouhani’s challenge is to build on the
electoral momentum and strengthen the moderate currents in Iran’s politics and
society, and thereby expedite the pace of transformation.
re·form·ist
A person who
advocates gradual reform rather than abolition or revolution.
clinch
Confirm or
settle (a contract or bargain).
steadfastly
Firm: with
resolute determination; "we firmly believed it"; "you must stand
firm"
hard-lin·er
A member of a
group, typically a political group, who adheres uncompromisingly to a set of
ideas or policies.
twin
One of two
children or animals born at the same birth.
o·ver·ride
Use one's
authority to reject or cancel (a decision, view, etc.).
man·date
An official
order or commission to do something.
the·oc·ra·cy
A system of
government in which priests rule in the name of God or a god.
ex·pe·dite
Make (an action
or process) happe
THE
HINDU: Provident fund reform needs more clarity
The
Central government finds itself in the thick of a controversy over the Budget proposal to tax a
part of the accumulated corpus in the Employees’ Provident Fund (EPF) upon
withdrawal. Gauging the
popular mood, the Opposition is seeking to corner the government on this issue. The proposal is
seen to hurt particularly the salaried middle class, considered a core
constituency of the BJP. “Pension schemes offer financial protection to senior
citizens,” Finance Minister Arun Jaitley said in the Budget speech. “I believe
that the tax treatment should be uniform for defined benefit and defined
contribution pension plans.’’ He proposed tax exemption for withdrawal of up to 40 per cent of the corpus at the time of retirement in the case
of the National Pension Scheme (NPS). In the case of superannuation funds and
recognised provident funds, including the EPF, the same norm of 40 per cent of the
corpus being tax-free would apply to contributions made after April 1, 2016.
From a larger social security perspective, Mr. Jaitley’s intention to lay the
groundwork for a “pensionised society” is laudable. In an ideal environment,
there is a justifiable case for prescribing a level-tax treatment for similarly
positioned pension plans. However, in the pursuit of a principled taxation
policy, the government should have imposed a similar provision for its own
employees’ retirement savings in the General Provident Fund. But as things
stand, they will continue to get a tax-free lump sum for their sunset years
from the GPF apart from a pension, albeit on a defined contribution basis
through the NPS for those who joined service after 2004.
The
government should have also tried to distinguish between a regular pension
scheme and a provident fund (that also provides a pension). Why should it force
EPF subscribers to get two pension cheques, which once credited to their
account would form part of their taxable income? The point is, the reform needs
to be carefully calibrated. Besides the tax benefits it fetches, EPF is often
seen as a reliable tool to force-save for the future. It has been, in a way,
playing a critical role in inculcating the habit of saving in a country with a
very limited social security net. In a sense, individual contributions to EPF
could also be construed as a way of enabling a corpus to meet critical lifetime
event expenditures. In any case, the contribution of employees to the provident
fund is not tax exempt beyond the annual ceiling of Rs.1.5 lakh. Therefore, the
tax on withdrawal will be tantamount
to double taxation. For, one would have paid tax at the time of
contribution as well. If the intention is to prod people to plan for pension,
the government would do well to invigorate the Employee Pension Scheme, which
exists today as a component of the EPF. The limited annuity product option also
does not help the cause of force-driving people into a pension system. The
government appears to have put the cart before the horse in this instance.
ac·cu·mu·late
Gather together
or acquire an increasing number or quantity of.
cor·pus
A collection of
written texts, especially the entire works of a particular author or a body of
writing on a particular subject.
su·per·an·nu·a·tion
Regular payment
made into a fund by an employee toward a future pension.
laud·a·ble
(of an action,
idea, or goal) deserving praise and commendation.
lump sum
an amount of money that is paid in one large amount on one occasion
sunset
to begin a new, happy life at the end of a story
in·cul·cate
Instill (an
attitude, idea, or habit) by persistent instruction.
con·strue
Interpret (a
word or action) in a particular way.
in·vig·or·ate
Give strength
or energy to
put the cart before the horse
to do things in the wrong order
BUSINESS STANDARD: Milking spectrum
The government has budgeted Rs 98,995 crore
from "communication services" in the 2016-17 Budget. The entire
amount will not come from the auction of spectrum. About Rs 22,000 crore is
licence and spectrum fees levied by the Department of Telecommunications, or
DoT, and Rs 21,000 crore would be arrears and deferred payments. So, the
government has budgeted for around Rs 56,000 crore from spectrum auction. As
companies are required to pay only 30 per cent of the money upfront, this would
require the DoT to sell spectrum worth about Rs 1.90 lakh crore during the next
round of auctions which it plans to hold in June or July. The Telecom
Regulatory Authority of India, or Trai, has suggested a base price for spectrum
in the 700 MHz band which can fetch the government up to Rs 5.36 lakh crore.
What the government needs to sell in order to meet its revenue target is less
than 40 per cent of this. In that sense, the government has been conservative
in its budgeting.
However, telecom companies have been quick to react that in fact this is way beyond what they are capable of paying. They have argued that the combined debt of the industry is already Rs 3.50 lakh crore, and this will lead to more stress on their balance sheets. Their main ire seems to be over the base price of the 700 MHz band, which is being auctioned for the first time and is much sought after for data-heavy 4G-LTE services. The base price fixed by the Trai is Rs 11,485 crore per MHz. The industry feels the propagation qualities of this band are similar to those of 800 MHz band, and therefore the two should be priced similarly; in Trai's recommendations, 700 MHz is almost twice as expensive as 800 MHz. What has compounded the problem is that there is hardly any 800 MHz and 900 MHz spectrum available in the upcoming auction, so those who lose out on 700 MHz cannot buy adequate spectrum in these bands. There is spectrum available in 1800 MHz, but it is fragmented and needs to be harmonised before the auction. There is however abundant spectrum available in 2100 MHz. Successful auction of 700 MHz spectrum, therefore, is critical if the government wants to meet its revenue target. Bharti Airtel, the country's largest telecom operator, has already said that it will not bid for these airwaves because they are too expensive. Others too have spoken out against the price, though none has categorically stated that it will not participate in the auction.
The other issue that may have cast a doubt over the attainability of the telecom revenue numbers is the assumption that the government would collect arrears and deferred payments of Rs 21,000 crore next year. This includes the disputed one-time spectrum charge the DoT had claimed from operators in 2013 for using spectrum over 4.4 MHz. The one-time charge was approved by the Union Cabinet of the previous government to level the playing field between incumbents who had been allotted spectrum at low rates and newcomers who were required to buy spectrum through the auction. However, this was challenged by the incumbents in the courts where the matter is still pending. Relying on revenues from arrears that are stuck in court cases could prove risky for the government's telecom revenue plans.
However, telecom companies have been quick to react that in fact this is way beyond what they are capable of paying. They have argued that the combined debt of the industry is already Rs 3.50 lakh crore, and this will lead to more stress on their balance sheets. Their main ire seems to be over the base price of the 700 MHz band, which is being auctioned for the first time and is much sought after for data-heavy 4G-LTE services. The base price fixed by the Trai is Rs 11,485 crore per MHz. The industry feels the propagation qualities of this band are similar to those of 800 MHz band, and therefore the two should be priced similarly; in Trai's recommendations, 700 MHz is almost twice as expensive as 800 MHz. What has compounded the problem is that there is hardly any 800 MHz and 900 MHz spectrum available in the upcoming auction, so those who lose out on 700 MHz cannot buy adequate spectrum in these bands. There is spectrum available in 1800 MHz, but it is fragmented and needs to be harmonised before the auction. There is however abundant spectrum available in 2100 MHz. Successful auction of 700 MHz spectrum, therefore, is critical if the government wants to meet its revenue target. Bharti Airtel, the country's largest telecom operator, has already said that it will not bid for these airwaves because they are too expensive. Others too have spoken out against the price, though none has categorically stated that it will not participate in the auction.
The other issue that may have cast a doubt over the attainability of the telecom revenue numbers is the assumption that the government would collect arrears and deferred payments of Rs 21,000 crore next year. This includes the disputed one-time spectrum charge the DoT had claimed from operators in 2013 for using spectrum over 4.4 MHz. The one-time charge was approved by the Union Cabinet of the previous government to level the playing field between incumbents who had been allotted spectrum at low rates and newcomers who were required to buy spectrum through the auction. However, this was challenged by the incumbents in the courts where the matter is still pending. Relying on revenues from arrears that are stuck in court cases could prove risky for the government's telecom revenue plans.
milking
Draw milk from
(a cow or other animal), either by hand or mechanically.
up·front
At the front;
in front.
con·serv·a·tive
Holding to
traditional attitudes and values and cautious about change or innovation,
typically in relation to politics or religion.
ire
Anger.
har·mo·nize
Add notes to (a
melody) to produce harmony.
attainability
Achievability:
the state of being achievable
ar·rears
Money that is
owed and should have been paid earlier.
de·fer
Put off (an
action or event) to a later time; postpone.
get stuck in
to start doing something enthusiastically
INDIAN EXPRESS: Trump Hrrumph
The dust has
settled after Super Tuesday, but the battle for nominations to the US
presidential contest has just begun. Donald Trump has done well for himself,
prompting a spike — reportedly of 1,150 per cent — in Google US searches on how to move to Canada. With
seven states in the bag, Hillary Clinton is neck and neck with the real estate
billionaire. But the spotlight is on the reality TV star who would bend reality
itself to his will. The New York Times, which has built a sort of web computer
with fiddly little sliders to figure out the contenders’ chances for
nomination, predicts that Trump stands a very good chance if he continues to
win, even if it is by unimpressive margins.
This factor would
be decisive after March 15, when the rules of the game allow states to fix
delegates on the principle of winner takes all. Some analysts have suggested
that Trump could be nominated even with a third of the vote. However, the same
logic would allow his Republican contenders to recoup their losses in the weeks
ahead.
The likeliest
outcome — Clinton versus Trump for the White House — is also the most wished
for, if only because of its entertainment potential. How will the sophisticated
and politically correct Clinton face off against her opposite number, a
gold-plated bling-size redneck who would build great walls to keep out Muslims
and immigrants, proposes to wrest back jobs from India and China, and does not
deny the endorsement of the Ku Klux Klan? Opinion is divided on whether she
will brush him off like a bloated bug, or just curl up in a foetal position.
After witnessing Trump’s prowess in recent weeks, the two possibilities are
equally real. While it is the perfect form of government, democracy is not without
its terrors.
Hrrumph
to express anger and disapproval, often not by speaking but making a noise
prompt
(of an event or
fact) cause or bring about (an action or feeling).
fid·dly
Complicated or
detailed and awkward to do or use.
contenders
(contender)
rival: the contestant you hope to defeat; "he had respect for his
rivals"; "he wanted to know what the competition was doing"
re·coup
Regain (something
lost or expended).
like·ly
Such as well
might happen or be true; probable.
bling
Expensive,
ostentatious clothing and jewelry, or the wearing of them.
wrest
Forcibly pull
(something) from a person's grasp.
prow·ess
Skill or
expertise in a particular activity or field.
brush him off
to refuse to listen to what someone says, or to refuse to think about something seriously
THE DAWN: Indian allegations
IS Indian Defence Minister Manohar Parrikar veering off script
or reading from notes that his government has given him?
The
question put to Mr Parrikar in parliament by a Shiv Sena member of the upper
house, Sanjay Raut, was clearly meant to bait the government into giving a
hard-hitting response.
A
sensible response by Mr Parrikar would have been to state that investigations
were ongoing. A more expansive response to Mr Raut’s question would have had
the Indian defence minister acknowledging the role of non-state actors in the
attack on the Pathankot air force base, but avoiding speculation about the link
to the Pakistani state.
Instead,
Mr Parrikar, who has earned a reputation for bellicose remarks off the cuff,
went so far as to link all non-state actors, ie militants and terrorists, on
Pakistani soil to the Pakistani state. “Any non-state actors there, they cannot
function smoothly without full state support,” Mr Parrikar told the Rajya
Sabha.
The
Indian defence minister’s loose remarks underscore the challenges that
bilateral dialogue has to contend with: when dialogue is stalled, hawkish
elements in both countries can and do casually undermine the environment for
talks and make it that much more difficult to resume them.
Pakistan
clearly has a non-state actor problem — militants and terrorists still operate
with impunity on Pakistani soil in unacceptably large numbers. The Pathankot
attack may well have originated from Pakistani soil.
But
from the very moment of the attack, the state here — both the political and
military sides of it — has tried to respond to India’s concerns, vowed to
investigate the attack, shared information with India and the public in both
countries, and appears committed to bringing the architects of the Pathankot
attack to justice.
Nothing
the Pakistani state has done since Pathankot suggests the group to which the
attackers apparently belonged has been allowed to operate smoothly. If
anything, there has been an unprecedented crackdown on an anti-India group
operating inside Pakistan.
Mr
Parrikar and his fellow hawks in government must surely be aware of the steps
Pakistan has taken, even if they remain suspicious of Pakistan.
Are the
hawks then trying to convince their own government to reverse itself on its
decision to resume dialogue with Pakistan? Or is Prime Minister Modi using his
cabinet to put pressure on Pakistan without directly implicating himself?
The
history of the Pakistan-India relationship is replete with examples of
politicians on both sides saying one thing and meaning another.
Perhaps
what is important for Prime Minister Nawaz Sharif’s government, and the
military establishment in Pakistan is to recognise that a drawn-out
investigation into Pathankot is not in the interests of bilateral dialogue.
Foreign
Affairs Adviser Sartaj Aziz has yet again suggested that a Pakistani
investigation team is set to visit India soon. Perhaps the two governments are
close to setting a date for the foreign secretaries to meet too.
veering
off
to change direction
bait
Food used to
entice fish or other animals as prey.
bel·li·cose
Demonstrating
aggression and willingness to fight.
off the cuff
If you speak off the cuff, you say something without having prepared or thought about your words first
con·tend
Struggle to
surmount (a difficulty or danger
stall
(of a motor
vehicle or its engine) stop running, typically because of an overload on the
engine.
hawkish
Militant:
disposed to warfare or hard-line policies; "militant nations";
"hawkish congressman"; "warlike policies"
im·pu·ni·ty
Exemption from
punishment or freedom from the injurious consequences of an action.
The Guardian view on the refugee
crisis: little time left to find a solution
urope
is approaching the point where the only way to control desperate migrants could
soon be the regular use of physical force. Scenes of violence this week on the
Greek-Macedonian border, where refugeesbreached a border fence with a homemade battering ram, and in
Calais, where police fired teargas at people
protesting against the demolition of their shelters, suggest we are close to a
line that we absolutely must not cross.
Europe is already guilty of causing the deaths of many migrants
by giving them, in effect, no alternative except to risk their lives at sea or
on the tracks leading into the Channel tunnel. That is bad enough, and a stain
on the record, but to actually battle with migrants in this way is worse.
Who can doubt that, if it continues, there will be deaths and injuries?
Another kind of violence, in the shape of attacks on those who have
reached a supposedly safe haven and are inhostels and centres in Germany and elsewhere, compounds the
offence.
Nothing has changed about Europe’s migration crisis, including
the continued failure to find an answer to it, except that it is getting worse.
The United Nations high commissioner for refugees reported on Tuesday that
about 130,000 migrants crossed the Mediterranean in the first two months of
this year, more than the total in
the first half of 2015. Winter and high seas have not stopped them, and
when the weather gets better there are almost certainly going to be even more
on the move.
The numbers involved are huge and the resistance in Europe to
taking so many is serious and becoming more entrenched. The answer, on paper,
is to share the burden fairly between European countries, on the one hand, and
between Europeand the region from
which most refugees come, on the other. The first difficulty is that the more
generous countries, which also happen to be those that are the preferred
migrant destinations, soon felt overwhelmed. They began to impose some
controls.
Other countries had been ready to manage migrants when they were
merely passing through, but, as soon as they grasped that the flow might stop,
leaving them with large numbers to care for, collective panic set in. The
increasingly large proportion of migrants who were not Syrians, but from
Afghanistan, Iran and African countries, complicated the problem. Border
closures followed, and now Europe is backed up like a railway after a
bridge has gone down.
The second difficulty is that European countries, and other
wealthy states, have been almost
criminally lackadaisical in providing the help and money they solemnly promised to countries
neighbouring Syria – countries that have taken far more refugees than Europe.
They are trying to make up for that now, but it is very late in the day.
The next few weeks are crucial. Before a migration summit on 18
March, national leaders and EU officials face a major challenge. At an earlier
summit with Turkey this coming Monday, they will continue to press Ankara to
restrain the flow at its end, but it would be foolish to depend too much on
that prospect. Yet they have to ease the migration bottlenecks fast. As Chancellor Angela Merkel has said,
Greece must not be left alone to struggle with larger and larger numbers
because states further north are shutting their doors.
Third, the EU has to at least begin to agree on some form of
burden sharing. There are some ideas, like tradeable
migrant quotas, that, although distasteful, are worth exploring.
Fourth, Chancellor Merkel has to survive the serious political
test represented bycoming state elections. The chancellor did not create the
refugee crisis, although some think she exacerbated it, but she does now own
it. It is hard enough to see how Europe will cope with her still in command;
harder still if she were further weakened. It is difficult to be optimistic,
but perhaps there is some hope in the thought that sometimes the very gravity
of a crisis compels its solution.
des·per·ate
Feeling,
showing, or involving a hopeless sense that a situation is so bad as to be
impossible to deal with.
guilt·y
Culpable of or
responsible for a specified wrongdoing.
en·trench
Establish (an
attitude, habit, or belief) so firmly that change is very difficult or
unlikely.
re·strain
Prevent
(someone or something) from doing something; keep under control or within
limits.
ex·ac·er·bate
Make (a
problem, bad situation, or negative feeling) worse.
com·pel
Force or oblige
(someone) to do something
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