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Current AffairsNovember 22

2010

Praveenhttp://indiancurrentaffairs.wordpress.com

11/22/2010




Politics and the Nation

Lokpal bill to cover prime minister, Cabinet

After several abortive attempts, the government is once again working on a law for

establishment of the institution of Lokpal to go into allegations of corruption against

public functionaries, including the prime minister.

The draft Lokpal bill, 2010 provides for filing of complaints of allegations of

corruption against prime minister, ministers and MPs with the Lokpal. According to

the bill, the Lokpal shall consist of a chairperson who is or has been a Chief Justice or

a judge of the Supreme Court. It will also have two members who have either been

the judges of the Supreme Court or the Chief Justices of high courts. The Lokpal bill

has had a long and chequered history. Legislations in the past had included the

prime minister within the ambit of the bill only on a few occasions.

The current bill provides for inquiry against PM but it has to be routed through the

Speaker of the Lok Sabha and the Lokpal can hear it only if it is cleared by the

Speaker.

The National Commission for Review of the Working of the Constitution in 2001 had

recommended that the prime minister be kept out of the Lokpal's purview since he

occupies a unique position and is the head of the entire governmental structure. The

draft bill also provides that complaints against ministers and MPs should be routed

through either the Lok Sabha Speaker or the Rajya Sabha Chairman.

Civil Servants and Civil Service Commissions

Loksabha Speaker Meira Kumar addressing the Inaugural Session of the first ever

Conference of Chiefs of Public Service Commissions of Member States of the South

Asian Association for Regional Cooperation (SAARC), organized by the Union Public

Service Commission (UPSC) of India gave interesting commentary on the role of civil

servants and civil service commissions.

Few interesting excerpts from the commentary:



Good governance largely depends on the correct manning of the public

services, which in turn is determined by the right intake of the suitable

people. It is in this context that the role of a public servant or the institution

of Public Service Commissions is critical in our system.

The quality of service to diverse population is largely dependent on the image

of the civil service as agents of change.The Public Service Commissions have

to evolve fair systems for recruitment of the best talents available in the

country to man these services. They must focus on selecting persons who are

committed to the upliftment of the socially and economically deprived

sections. The selection process must include aptitudinal tests for determining

the commitment and suitability of prospective civil servants to the cause of

social transformation and their passion for eradicating deep rooted social

evils.

A good administrator has to be accessible, responsive, vigilant and

accountable. The success of a civil servant lies in providing valuable public

services without delay or hindrances. The civil servants also play a vital role

as catalysts for social transformation. In addition to execution of

developmental projects, civil servants are responsible for implementing

socially progressive legislations which are aimed at transforming the society

and it is incumbent upon them to create an enabling environment to empower

the poor and the disadvantaged sections and restore them to a position of

equality.

A strong civil service is the one in which civil servants are accountable, result-

oriented and transparent in their dealings and should command the trust and

respect of the people it serves.

Vaidyanathan Committee recommends Remote Sensing, National Centre for

Improving Agricultural Statistics

The expert committee set up under the chairmanship of Prof A Vaidyanathan to

suggest ways to improve agricultural statistics has called for using remote sensing



and restructuring the data collection machinery. In its interim report, the Expert

Committee has also recommended setting up of National Crop Statistics Centre

(NCSC) to deal with all aspects of crop area and yield estimation.

Arundhati calls Maoists as "patriot of a kind"

Addressing a meeting on "Cultural resistance to war on people in corporate interest",

organised by a magazine considered to be pro-left, controversial writer cum activist,

Arundhati Roy has glorified Maoists as "patriot of a kind" and accused Prime Minister

and Union Home minister of "violating the Constitution and PESA (Panchayat

Extention of Scheduled Areas) act by allowing corporates to use tribal land."

"Patriot of a kind, they (Maoists) are. But here patriotism is very complicated. So at

the moment what people are fighting for is to keep this country from falling apart,"

Roy asserted.

Super30 founder to share dias with James Cameron

Bihar's 'Super30' founder Anand Kumar will share the dias with Hollywood's top film-

maker James Cameron in a conference in Maharashtra next month.

The Oscar winning director-producer and Kumar will share their experiences during

Technology Entertainment and Design (TED)-assisted international "Ink Conference"

at Lavasa from December 10-12.

Cameron who has helmed blockbusters like 'Titanic', 'Avatar' and 'The Terminator'

would be the star attraction of the program.

Kumar said that it is an honour to speak before such a personality."It has been an

honour for the state of Bihar where I grew up and started my institute of Super30,"

he said.

Super 30 has achieved recognition for grooming students from underprivileged

sections for admission into the IITs.

Wanna know what Super30 is about? Check out the links



http://www.super30.org/

http://en.wikipedia.org/wiki/Super_30


http://www.super30.org/

http://en.wikipedia.org/wiki/Super_30


INTERNATIONAL NEWS

Agreement on tobacco controls at WHO summit

Representatives of 172 countries have agreed at a World Health Organization

meeting on guidelines to control the use and sale of tobacco products. The event,

known as the fourth meeting of the Conference of the Parties (COP) to the global

tobacco treaty, approved guidelines on controlling tobacco flavorings and additives

despite lobbying from the tobacco industry. Control supporters say that tobacco

companies use the flavorings to attract young smokers.

Russia opens Tiger Summit to save big cats

Russia, on Sunday called for global efforts to avert extinction of tigers as wildlife

activists and officials from 13 countries, including India, opened a summit in St

Petersburg to discuss ways to double the population of the endangered animal from

the existing 3,200.

The population of tigers is being exhausted both quantitatively and qualitatively. As

many as three out of eight tiger subspecies have become extinct. Due to decades of

poaching and habitat destruction, there are currently only 3,200 tigers living in the

wild, according to the World Wildlife Fund (WWF), compared with 100,000 a century

ago. Three subspecies have already disappeared and none of the other six are

secure.

The ongoing decline of tiger is emblematic of the loss of Asia's forest landscapes. The

disappearance of a species at the top of the food chain will endanger all of the

species who live below it.

Russia is the only country to have seen its tiger population increase in the past

years, from 80-100 in the 1960s to around 500 now.

According to the organisers Indian Prime Minister Manmohan Singh was also invited

for the summit. However, India, which plays key role in the tiger conservation, is

represented at the bureaucratic level.



Along with Russia and India, Bangladesh, Bhutan, Cambodia, China, Indonesia, Laos,

Malaysia, Myanmar, Nepal, Thailand and Vietnam - home to wild tigers are taking

part in the Tiger Summit.

Mount Merapi claims 283 lives

Indonesia's Mount Merapi volcano has killed 283 people since it began erupting late

last month, with more than 270,000 people still living in makeshift camps.

Merapi killed around 1,300 people in 1930 but experts say the current eruptions are

its biggest convulsions since 1872.

India, GCC and the World

Why the region should be secure and stable?

It is evident that given the geo-political imperatives of these eight littoral states

(Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates are

members of a regional grouping – the Gulf Cooperation Council while the other two –

Iran and Iraq – are physically in the sub-region and share commonalities with all

others) of the Persian Gulf, security perspectives and threat perceptions do not

converge. Nevertheless, and in relation to this international waterway, some

common elements can be discerned. In the first place, the concerned states want to

prosper and avail of the benefits of development. Secondly, the Gulf lands are

essential for the economic health of the world since they are a principal source of

hydrocarbon energy as well as a major market for industrial goods, technology and

services, For these reasons, to use Curzon’s phrase used in another context in 1903,

‘the peace of these waters must be maintained’.

The essential ingredients of such a requirement would be (a) prevalence of

conditions of peace and stability in the individual littoral states (b) freedom of access

to, and outlet from, Persian Gulf through the Strait of Hormuz (c) freedom of

commercial shipping in international waters in the waterway (d) freedom to all states

of the Gulf littoral to exploit their hydrocarbon and other natural resources and



export them (e) avoidance of conflict that may impinge on the production of oil and

gas and on the freedom of trade and shipping and (f) assurance that regional or

extra-regional conditions do not impinge on any of these considerations.

Peace means much more than the absence of war. Human security can no longer be

understood in purely military terms. Rather, it must encompass economic

development, social justice, environmental protection, democratization,

disarmament, and respect for human rights and the rule of law. In such a

comprehensive framework, deficit on any of these counts would signal an element of

insecurity.

Objectives of Gulf Diplomacy

The objectives of Gulf diplomacy as ‘mutual understanding, coexistence, good

relations with its neighbours and the establishment of strong relations based on the

principles of reciprocal advantage and the realisation of the good of all.’

India and the GCC

The strategic relevance of the sub-region to India has to be located geographically,

historically and in economic terms. The distance from Mumbai to Basra is 1526

nautical miles while Bander Abbas and Dubai are in a radius of 1000 nautical miles.

Contact through trade and movement of people has roots deep in history, testified to

by archaeological finds and written record. Fascination with India is reflected in Kitab

Ajaib al-Hind by Buzurg ibn Shahriyar of Ramhormuz, a tenth century collection of

sailor’s tales. Many proverbs pertaining to India are to be found in the colloquial

language of the lower Gulf. Familiarity with India and Indians at individual and family

levels, Mumbai-Hindustani, Mumbai-Biryani and Bollywood films contribute to it in

good measure particularly in the GCC countries.

Given this proximity, it is hardly surprising that in the period after 1975 there has

been a significant spurt in economic linkages between the region and India. Changed

and changing requirements and capabilities have contributed to it and will continue

to do so in the foreseeable future. It is significant that given the affinities of the past



and the experience of recent decades, the public and political establishments in the

littoral states are India-friendly and Indian friendly.

Trade

India import over 63 per cent percent of itscrude oil requirement from these

eight countriesof the Persian Gulf. Its worth in money terms, in 2009-10,

stood at over $ 49 billion. Given the rate of growth of the Indian economy,

these figures can only go up in the future.

These eight countries account for over 22 per cent of our total trade as of

2009-10 amounting to around $ 105 billion. They account for a quarter of our

imports totalling $ 72 billion and 18 per cent of exports totalling around $ 33

billion. Six of these eight countries, barring Oman and Bahrain, figure among

the top 25 countries in terms of total trade.

UAE is our top trading partner with a total trade of $ 43.5 billion, ahead of

China at $ 42.4 billion and the US at 36.5 billion. It is our largest export

destination accounting for 13 per cent of our exports amounting to $ 24

billion and the second largest source of our imports after China, totalling $

19.5 billion.

Saudi Arabia is our fourth largest trading partner with a trade of $ 21 billion,

and Iran our ninth largest trading partner at $ 13.4 billion.

An Indian non-immigrant workforce of around 6 million works in these

countries, principally in the GCC states. Of these, 1.6 million are in Saudi

Arabia and 1.2 million in the UAE. The composition of this workforce has

changed over the years and many more professionals and specialised

technical skills are to be found amongst them today. The remittances of this

workforce, through banking channels, stands at around $ 30 billion per

annum. They help support six million families and contribute in some measure

to economic activity in some of the states of the Indian Union.

The two-way investment profile, modest at present, is expected to grow with

the growth of the Indian economy. The GCC countries have become an

important destination for Indian projects and IT services.

The sub-region is also within the security parameter of India and within the

operational radius of the Indian Navy. The latter’s participation in the anti-



piracy operations in the Arabian Sea is a case in point. If needed, it can escort

shipping and interdict forces hostile to it.



BUSINESS/FINANCE/ECONOMY

India is the second biggest importer of goods & services

China may be the biggest contributor to global growth as the world comes out of

recession, but it is India that is at the forefront of creating demand for countries

battling slowdown. It was the second biggest net importer of goods and services in

2009, just behind the US, providing a market for countries battling contracting

domestic demand.

India imported $69 billion of goods and services in 2009, while the US was a net

importer of about $699 billion. This means that India injected demand into the global

markets by creating a demand for products, helping in creating jobs and sustaining

other economies.

India has been historically an energy scarce nation and has a comparative

disadvantage in edible oils. This means that large part of its needs for energy and

edible oils are met through imports .But now, its non-oil imports have also gone up.

Exports of agricultural commodities and capital goods have seen a rise over past few

years.

India’s total non-oil imports for FY2009 stood at $274 billion.

FDI in retail as an investment in rural India

The consensus on permitting FDI in multi-brand retail is yet to emerge. while, the

critics of the policy permitting FDI often advance the argument that FDI in retail will

displace the small corner-shops that provide income and employment to a large

number of traders. Here is write-up by T. Nandkumar, which bats for it.

The author classifies the retail segment into two parts: the groceries, vegetables and

fruits part and the manufactured goods like toothpaste, shampoo etc. For the sake of

simplicity, author classifies them as food and non-food. This article is focused on

food and uses the term FDI in a larger framework of investments.



First, assured purchases. Any large retail chain will need supplies. These are not

going to come from abroad. These will have to be produced in some part of India.

The company will have to get into a contract farming agreement with farmers and

ensure that the produce is picked up and transported regularly.

Second, increase in productivity. Companies will have to compete not only on prices

to the consumer but also on remunerative prices to farmers. This is possible only if

they invest in better seeds, fertilisers and farm practices. The farmer has to get

higher returns from his land and he needs support to do this: be it technology, better

inputs or management. The winner will be the one which can get the farmers’

incomes up and keep the consumer prices down.

Third, better quality. It calls for intervention at the farming, transport and storage

stages. Besides giving right seeds and other inputs to the farmers, companies will

have to advise farmers on management of the crops and use of consumer friendly

pesticides.

Fourth, reduction in wastage. Perishable agricultural produce are now subjected to

unscientific handling, resulting in huge wastage. Most often, the consumer pays for

this wastage. In some cases, the farmers do. A large company would consider

increasing its competitiveness by ensuring the efficiency of logistics. This requires

investments in warehouses and in transport and handling.

Fifth, introduction of new technologies. The competitive advantage of companies will

come from introduction of new technologies to enhance productivity and quality at

the farm level and in logistics. This could benefit a large number of farmers.

Sixth, encouraging producer companies and cooperatives. Large retail companies

may not be comfortable dealing with millions of farmers. They will need effective

intermediation. This could be done either through efficient private players or through

farmers groups, cooperatives, producer companies, etc. In fact, there could be an

opportunity to form a large number of producer companies or farmers groups (an

enlarged version of SHGs).This could also lead to successful financial inclusion as has

been proved in the milk sector.



Seventh, better processing of food. Most global retail chains have their own brands

to cater to local tastes and needs. Food processing, therefore, is an integral part of

investment in retail. Wastage in the fruit and vegetable sector can be avoided

through improved processing. The factories will come up closer to the growing

regions than to cities. Like sugar mills that dot the landscape in the prosperous parts

of rural India, these factories could also change the rural landscape.

Eighth, enhanced exports of agricultural produce. The change in production patterns

and better conformity to SPS standards will open up more markets for exports. The

retail chains themselves are big buyers and given the right production matrices,

exports can take a quantum leap.

These can happen only if a few critical issues are addressed. Reforms in APMC

(mandies ) to enable large consumers to buy directly from farmers are the most

important. Encouraging contract farming could be the next. Pragmatic policy

guidelines on the rules of engagement with the farmers could be the real catalyst. It

should be possible to integrate these aims into the policy

Rice Economics

This year, the world has harvested the largest rice crop in history. Yet, the three

billion people who eat it daily are paying more. Rice is one cereal where abundance

doesn’t mean availability. Too often, you can’t get it for either love or money. ET’s

Nidhi Nath Srinivas helps you join the dots through her article Grain of truth:

Money can’t buy me rice.

Despite a record 450-million-tonne crop that matches consumption, globally rice is

becoming costly. Chicago rice prices have risen by a third since late June.

Benchmark Thai prices are creeping up. What’s pulling up prices? Little trade.

Rice is grown in 50 nations. Equal number import it. Though almost two dozen

countries have an exportable surplus, only five — Thailand, Vietnam, Pakistan, US

and India — sell maximum quantity. So, the number of buyers far exceeds number

of sellers. Barely 7% of the total rice on the planet is on sale each year. That means



if even one of the Big Five, like India this year, exits or has less to sell, importers

start panicking . Buyers like China can be the elephant entering a lily pond. But

except for paddy futures on the Chicago Board of Trade, no commodity exchange in

the world allows them to hedge price risk in rice.

Why doesn’t more rice get traded if there is so much demand? People have fixed

tastes. You may be indifferent to the wheat variety in your attaor the origin of sugar

in your tea. Refined oil is cuisine-neutral because it is tasteless and odourless. But

you rarely switch between rice varieties because you see it, smell it and touch it with

your fingers and eat it whole every day. Each rice variety is like a brand with die-

hard loyalists. Between the Japanese and Italians who love short and sticky japonica,

the Saudis who import long-grain aromatic basmati, Tamilian NRIs wanting sona

masuri, and the Senegalese who import smashed brokens, lies an entire gamut of

tastes and flavours. It’s a cultural thing. Unfortunately, the Big Five often can’t meet

demand for various varieties , which limits export and further fragments the market.

Meanwhile, overall supply itself is hanging by a thread. The 2010 season began with

extra rice for only 76 days consumption in the world. So, weather-related disruptions

and smaller crops in Myanmar, Pakistan, the Philippines, Thailand, China and US all

have the potential to increase price volatility.

Farmers are shifting to high-value crops, leaving less land for rice. Urban sprawls are

gobbling paddy fields. Yields stagnate as one-hectare farmers find hybrid seeds

unaffordable. Labour is getting expensive.

To complicate matters, paddy is an extremely sensitive crop. Scientists say hotter

nights during the past 25 years have already cut the yield growth rate by 10-20 % in

several parts of Asia, which grows 90% of the world’s rice. If we cannot change our

production methods or develop new heat-tolerant varieties, rice production will

reduce over the next few decades. In short, the rising cost of energy, environment

and land degradation, water scarcity and climate change are all threatening

production. But by 2050, world population will touch nine billion.

Governments know only the foolhardy would depend on such a fickle international

market. So they all live by one motto: when in doubt, panic first. Rice prices crossed



$1,000 a tonne in 2008 not due to poor harvest, a surge in demand or tight global

supply. Global output in 2007-08 was the largest, and the 2008-09 crop even larger.

The crisis was triggered because nations ring-fenced local supply by slamming export

bans and taxes. Aircraft safety procedures tell you to first put on your own oxygen

mask. Then help others. It’s the same logic.

India’s ban on rice export is no different. Continuous rain, drought in the east, 10%

less acreage than normal and stagnant yields have all made it hard to estimate final

2010 kharif harvest. Rice inflation at 9% in last 52 weeks shows there is no

oversupply. If India exports now and runs short later, no country will supply us

affordable parmal.

Unlike wheat and sugar, rice is so fundamental to human civilisation that it is no

longer food. It is politics. Each grain is a potential bargaining chip. The sheer variety

in rice makes it a fractured business opportunity but a strategic interest for all

nations. High consumer prices are the collateral damage.

Ease of Doing Business in India

THE World Bank’s latest global ranking of Ease of Doing Business, 2011, lists

India among the 40 most improved economies, with overall position marginally

improved from last year, but it is still placed at a lowly 134th in a list of 183.

The report underlines the avoidably high cost of doing business in India, stemming

from procedural complexity designed to yield rent for those who wield power.

The annual survey tracks regulatory efficiency in countries across nine functions,

such as procedural formality for starting a business, enforcing contracts and dealing

with construction permits.

The paperwork and formalities involved in starting a business: India is ranked at a

poor 165. Worse, when it comes to enforcing contracts, it is at a scandalous second-

last or 182/183, which is unchanged from last year.



Proactive reforms to systematically improve the regulatory and operational

environment for business and industry, strengthening transparency and efficiency of

commercial dispute resolution and improving bankruptcy procedures merits urgent

attention if policy makers were to revamp and reform the business environment

across the board.

MFIs want banks to create a 1,000cr fund

Microfinance companies, facing liquidity crunch, have reportedly sought RBI to set up

an emergency fund of INR 1,000 crore to help them tide over slowdown in their

business.

The micro finance sector has been reeling under a liquidity crisis after the Andhra

Pradesh government issued an Ordinance to control interest rates charged by

microfinance institutions (MFIs) and also to check the coercive recovery tactics

adopted by these firms.

Sources said MFIN Microfinance Institution Network (MFIN) taking up the issue to

RBI has sought central bank’s assistance and has requested it to direct the Small

Industries Development Bank of India (SIDBI) and public and private sector banks to

extend the funding.

MFIs offer credit to the poor after sourcing the funding from banks. While banks lend

to MFIs at 12-13 %,MFIs in turn charge interest rates as high as 36%.MFIs say high

interest rate is charged because the cost associated to lending in rural areas is too

high

400 per cent rise in cases of suspicious transactions

Cases of suspected terror financing and crime related money went up by almost 400

per cent in the country's banking and monetary channels keeping enforcement and

intelligence agencies on their toes during the last financial year.



More than 17,000 Suspicious Transaction Reports (STRs) were generated by the

financial intelligence wing of the government with the maximum reports of such

transactions being received and reported by the banking channels of the country.

But there is no information with the Financial Intelligence Unit (FIU) on what the law

enforcement agencies like CBI or ED did with the information provided by the FIU.



SPORTS

Athletes provide the sparks as India clinch three gold medals

The athletes provided a huge boost to the country's lacklustre campaign in

the 16th Asian Games by fetching two gold medals while Ronjan Sodhi

brought an end to the gold drought in shooting as India bagged as many as

nine medals to climb to the 8th position on an eventful ninth day of

competitions in Guangzhou.

Kavita Raut fetched a silver in the women's 10,000 m run while star tennis

player Sania Mirza and grapplers Ravinder Singh (60 kg Greco Roman)

and Sunil Kumar Rana (66 kg Greco Roman) were among those who

claimed individual bronze medals.

Sodhi teamed up with Asher Noria and Vikram Bhatnagar to claim the bronze

in the double trap team event while the women's archery team comprising

Dola Banerjee, Deepika Kumari and Rimil Buriuly also chipped in with a

bronze.

Kumble team sweeps KSCA elections

Beginning a new era in the Indian cricket administration, former Test captain

Anil Kumble was elected on Sunday as the President of the Karnataka State

Cricket Association while former pace duo of Javagal Srinath and Venkatesh

Prasad were elected as Secretary and Vice President respectively.

Kumble defeated Srikantadatta Narasimharaja Wodeyar, a scion of the

Mysore Royal family and also incumbent President, by a margin of 43 votes.

Srinath defeated former umpire AV Jayaprakash, who was one of the on-field

umpires when Kumble took 10 wickets in a Test innings in Delhi, by 245

votes.

Prasad, Roger Binny and Sadanand Mayya were elected Vice-Presidents



SCIENCE & TECH

'India can emerge as largest producer of Cobalt-60'

India has the capacity to become the largest producer of Cobalt-60, a radioactive

isotope which can be widely used for food preservation and medical product

sterilisation, according to Department of Atomic Energy (DAE).

Cobalt-60 is obtained as a by-product from the Pressurised Heavy Water Reactors

(PHWRs), a large number of which are operational in the country. India can produce

up to 2.5 mega Curie of Cobalt-60 by using all the PHWRs operating in the country.


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