mumbai | wednesday 24 july 2019 the tower of legal babel€¦ · bimal jalan committee reviewing...

8 ISSUES AND INSIGHTS>

MUMBAI | WEDNESDAY 24 JULY 2019

> CHINESE WHISPERS

SUBHOMOY BHATTACHARJEE

According to media reports,Finance Secretary SubhashChandra Garg will be putting

up a dissent note in the report by theBimal Jalan committee reviewing thecapital framework of the Reserve Bankof India (RBI). One key recommenda-tion will be how much of the centralbank’s reserves should be transferredto the government. Garg has appar-ently suggested a one-time lump sumtransfer.

Garg is not the first to put in a dis-sent note in a financial sector report.In fact, it is rare to find any committeereport for the financial sector since2000 in which there hasn’t been a dis-sent note by at least one member. Ifhe does so, however, he would be thefirst finance secretary tohave put in a dissent noteso far in the 20-odd reportscommissioned for the sec-tor.

The most famous dis-sent was the “HighPowered Expert Committeeon Making Mumbai anInternational FinancialCentre” report of 2007. Itwas colloquially known bythe name of its chairman, PercyMistry, who made his dissent knownby declining to sign the final report.The Percy Mistry report was signed bythe other 14 members; predictably,Mistry’s absence made the news —and Mumbai never made the transi-tion to an international financial cen-tre.

In 2006, economist Surjit Bhalla

put in a dissent note as member of thesecond SS Tarapore committee reporton capital account convertibility. Thiswas known as the committee on“fuller” capital account convertibility,since there was an earlier report onthe same theme by the committee in1997. The earlier one did not have adissent note. Some recommendationsfrom both these committees becamepart of the policy framework.

The maximum number of mem-bers to put in a dissent note was theFinancial Sector Legislative ReformsCommission chaired by JusticeSrikrishna to streamline and updatesectoral laws. Of the eight memberswho wrote the report in 2013, four alsopenned dissent notes.

Discussions on the report are pep-pered with these dissent notes, espe-

cially the one by P J Nayak.As former joint secretary,capital markets, and formerchairman of Axis Bank,Nayak’s words of cautionabout transferring powerfrom the RBI to the financeministry effectively killedthe report. One key propos-al became the FinancialResolution and DepositInsurance (FRDI) Bill, 2017,

but the uproar over a clause dilutingdepositors’ rights put it on the backburner.

Nayak himself was lucky as thereport he chaired in 2014 as the“Committee to Review Governance ofBoards of Banks” had no dissentnotes. No wonder its prescription forbank governance in India has becomethe standard reforms template since.

There is a pattern to these dissentnotes. Most of them have been aboutreconciling differences between theRBI and the finance ministry, theunderlying issue being which institu-tion will be asked to cede power.Committees were expected to narrowthe differences. In most cases, thatnever happened, so the tensions per-sist with varying intensity.

For instance, in 2018, the financesecretary chaired an Inter-MinisterialCommittee for Finalisation ofAmendments to the Payment andSettlement Act. The committee hadseven members, of whom the RBI rep-resentative, S Ganesh Kumar, execu-tive director, had put in a dissent note.At stake was who will get to police theemerging fintech sector.

No surprise, then, the practice hasspread to other entities in the finan-cial sector. Economist Abhijit Sen asmember of the 14th FinanceCommission had put in a dissent note.The commission was chaired by Y VReddy. Sen criticised the sharp bumpup in the allocation to states from thedivisible pool. Sen was the first mem-ber of a Finance Commission memberto write a dissent note.

Essentially, every chair of a com-mittee on the financial sector has hadto wrestle with dissents. The N KSingh-led committee review of theFiscal Responsibility and BudgetManagement Act got its share fromthen Chief Economic Advisor ArvindSubramanian in 2017.

Raghuram Rajan chaired tworeports for the Planning Commission,one of them after he was appointedchief economic advisor. The one on

financial sector reforms,which he chaired beforejoining the government,went through peacefully,but the “committee forevolving a compositedevelopment index ofstates” which submittedits report in 2013, founditself saddled with a dis-sent note from ShaibalGupta of AsianDevelopment ResearchInstitute. Gupta opposed the methodcrafted by the committee to decide ifa state could get special status. This,too, got more salience than the report,which was quietly buried.

The Seventh Pay Commission withjust three members has notched up arecord for the largest number of dis-sent notes — well over 60. They dif-fered on treatment of defence services,whether IAS entrants should hold an“edge” over other services on number

of years, on pay within thecentral services on promo-tion prospects, on lateralentry and much more.There were so many that itis often difficult to makeout if there is a consideredview for the government toadopt or simply a recital ofthe dissenting views.

Even when there was nodissent on record, such asthe Bimal Jalan committee

for “Review of Ownership andGovernance of Market InfrastructureInstitutions”, reports created news forhaving glossed over dissensions. Thatreport submitted in 2010 set up a furi-ous debate between the stockexchanges with both the finance min-istry and the Securities and ExchangeBoard of India eventually distancingthemselves from the conclusion.Jalan, too, finally distanced himselffrom the report.

The ascent of dissentFinancial sector committee reports have become as famous fordissent notes as their recommendations

Swaraj on political violence

Former external affairs minister SushmaSwaraj (pictured) has retired from activepolitics. Her well-wishers andsupporters expected the government tomake her governor of a state. WhileSwaraj is yet to be sent to a Raj Bhavan,she has decided to highlight the issue of“political violence in Bengal”. OnThursday, Swaraj will be the chief guestat such an event the India Foundation,a Bharatiya Janata Party-affiliated thinktank, is organising. The organisers havesaid more than 50 families “whosemembers have been victims of politicalviolence in Bengal and all thosesurvivors of family victims will narratetheir stories of sorrow and horror”. Thegroup is planning to prepare a report onthis and present it to Home MinisterAmit Shah.

For an accident-free IndiaRashtriya Loktantrik Party leaderHanuman Beniwal, an ally of theBharatiya Janata Party in Rajasthan, onTuesday said in the Lok Sabha that oneof the reasons for the growing numberof road accidents was India's risingpopulation. He suggested those withmore than three children should not beallowed to contest Lok Sabha and stateassembly elections. Speaking on the Billto amend the Motor Vehicle Act, Beniwalsaid India should follow a three-children policy, if not the two-childrenpolicy followed by neighbour China. Thereason that Beniwal said a three-children policy was good enough,sources said, was because having threechildren was still quite the norm inRajasthan, and several of his politiciancolleagues have three children.

Star performer TewariUPA ChairpersonSonia Gandhi onTuesday cameprepared to take onthe government onUS President DonaldTrump's remarks onKashmir. During theZero Hour, as Manish

Tewari (pictured), who was leading theCongress' charge on the issue, targetedthe government, Gandhi pulled out asheaf of papers from a plastic folder andhanded those to Tewari, who startedreading out from the transcript ofTrump’s remarks on Kashmir. He returnedthe papers after completing hisintervention. Tewari had been passedover and Adhir Ranjan Chowdhury waschosen leader of the Congress in the LokSabha. But during the ongoing session,Tewari has been one of the starperformers for the party.

> LETTERS

Plan nowThis refers to “The agony and theurgency of water” (July 23). The articleis well timed as some of the states inIndia are reeling under severe watercrisis. Vidarbha in Maharashtra is onesuch region. The suggestions for con-servation of water through variousmeasures are well taken. The need ofthe hour is issuance of governmentadvisories and campaigning in publicmedia for the efficient use of water.Rainwater harvesting in every build-ing and hotel in the city should becompulsory and reuse of waste waterthrough recycling by modern tech-niques should be undertaken. Wemust be prepared to tackle globalwarming. If we plan now, we mayachieve the goal of reducing demandfor water through efficient conserva-tion in a very short time span.

Partha Sarathi MukhopadhyayNagpur

One-sided matchThis refers to your article “Red flagson green targets” (July 23). Indiashould not commit itself to anyenhancement in its targeted share atthe climate change summit despitehaving the capacity to do so as itsinternal efforts aren’t adequate.

Afforestation cannot be an imme-diate measure or solution and will onlybe a long-term strategy to reduce emis-sion in the wake of mass deforestationover a period of time. Official commit-

ments before international forumshave to be made with caution as theEuropean Union and the United Stateshave a hidden economic and politicalagenda to dilute and gradually doaway with their share in climatechange by passing the burden on todeveloping countries like India andChina. They have also not committedin extending technological and finan-cial support to reduce costs. This isagainst equity and fair sharing.

Further, when covertness does notsucceed, they resort to political threatslike pulling out of agreements enteredinto earlier. This applies all the moreto the US. The United Nations is alsoattempting silent coercion by statingthat countries should come preparedwith enhanced targets at the UnitedNations Climate Change Summit inSeptember 2019. It is obvious that suchthreats are being directed towards thedeveloping countries like India andChina. Commitments made before aninternational forum will lead to aninternal economic pressure increasingcosts for such conversion, hurting theindustry, especially the power seg-ment, transport and housing amidstan abrupt change in technology. It will upset productivityand create inflation.

C Gopinath Nair Kochi

Letters can be mailed, faxed or e-mailed to: The Editor, Business StandardNehru House, 4 Bahadur Shah Zafar Marg New Delhi 110 002 Fax: (011) 23720201 · E-mail: [email protected] letters must have a postal address and telephonenumber

> HAMBONE

Hong Kong is adrift in unchartedwaters. The uncommon tear-gas tango being played out on

the city’s streets poignantly shows it hasbeen a fast and brutal slide from thehigh life to high dudgeon.

As with the 2014 “Occupy”, a massseemingly disciplined movement hasdribbled into a meandering leaderlessdisplay of angst with no clear long-termaim. Small fringe groups repeatedlybreak off from peaceful marches likemalign free radicals roaming the city’sfinancial arteries seeking futile con-frontation. The government has curi-ously all but abdicated the stage creat-ing an even bigger leadership vacuum.And a once professional police force,maligned and under pressure, standsby as violent hooligans beat black-shirt-ed protestors as well as casual com-muters in an MTR station. This holdsdangerous portents.

Politics abhors a vacuum and Beijingis increasingly uneasy as symbols of itsauthority come under attack. Withprotesters fleeing to Taiwan, purported-ly for asylum, events have spilled intothe regional arena adding pressure oncross-strait tensions.

It is time for the government to reachout across the divide to fashion a bridge— seeking help from universities, politi-

cians of all hues, Christian leaders,labour heads and business stalwarts,and anyone who may be in a position tohelp. This is not a time for bruised egos,face, shows of state power, petulance, orPR spin. It is a time for big-tent actionacross a table — no matter how acrimo-nious — with transparency, and withthe media present.

Bringing these disparate views intoa single room means certain groundrules must be clearly understood andfirmly enforced. Hong Kong’s “rule oflaw” must be upheld at all costs. This isthe glue that binds the fabric of thiscomplex territory. The Basic Law, HongKong’s mini constitution that emergedfrom white-knuckle Sino-British talksand received a tacit nod from majorpowers, must be adhered to.

Protestors who have broken the lawand vandalised public buildings likethe Legislative Council (regardless ofwhether they were lured in as a part ofgovernment strategy to erode publicsupport) must face their charges in acourt of law. No country takes an attackon its seat of power lightly. The stu-dents are right to protest a hastilydevised extradition bill but terriblywrong to cross the line when it comesto violence. To argue the damage is anaberration by a small faction is imma-terial now. The entire movement hasbeen tarred by that brush, in one fellswoop killing business, tourismreceipts, and goodwill.

Fleeing to Taiwan is not an option.A government in exile —somethingderacinated dissidents often fancy overtime though not as yet in this case —would be an incendiary notion. Theymust face the music at home. Civil dis-obedience as espoused by the likes ofMahatma Gandhi or a Martin LutherKing entailed long stints in prison wheremoral authority was incubated. They

were non-violent. But they broke whatthey deemed were restrictive and egre-gious laws. They knew their actions hadconsequences. They didn’t slip away toBermuda for a martini.

The government for its part muststop dancing around the issues withsemantics. It has impressed none andfrustrated all. If the extradition bill istruly dead, then the chief executivemust take it off the table. There can beno ambiguity. The police must endtheir petulant behaviour and get backto serving and protecting, as they havedone in a clean and exemplary fashionsince the Independent CommissionAgainst Corruption (ICAC) was insti-tuted in 1974 to excise graft from theranks. An independent commission ofenquiry would be welcomed to identifyerring officers and put paid to idle scut-tlebutt. The morale of those in uniformmust be rebuilt.

A fundamental problem with thesudden politicisation of Hong Kong —an avowedly apolitical financialentrepôt until 1997 — is the lack ofprecedent and history or any markersto chart progress. Just as viewers oftenmimic relationships on TV (Friends wasone striking example), politics in the ter-

ritory has been largely copied and has anaïve romantic neo-convert tinge to it.That image may be losing its lustre andis part of the frustration as studentsrealise that a crowd, however well inten-tioned, cannot simply dictate terms.

There is rule of law. There are courts.There is procedure. That’s where thebattle must be joined if the city is to pro-tect its fine institutions and future well-being. Romantic struggle requires aGreat Evil to oppose in order to stiryoung hearts. And thus the good-vs-evilbattle plays out weekly on Hong Kongstreets shrouded in tear gas. It is streettheatre at its most moving — bothintriguing and worrisome, given itsunpredictable nature and the absenceof a coherent plot. Hong Kong’s embat-tled Chief Executive Carrie Lam ChengYuet-ngor has been pilloried as a stoogeand a monster. She is neither. But anobdurate manner, government hubris,and a tin ear have not helped.

Lam would do well to resign after aface-saving cooling down period (whichalso limits the damage to Beijing) muchlike former CE Tung Chee-hwa in March2005 for “health” reasons. There is aprecedent for retreat. But any coolingdown period will require some govern-ment heads to roll right away. The policechief and the secretary for justice areprime candidates. It will help bring cool-er heads to the table to revisit grievancesand offer reassurance. That is the priceof peace. Any other alternative is toogrim to contemplate.

While the process of selecting a newCE may open a fresh can of worms forsome parties given the current swingaway from China-sympathetic politi-cians, it represents the fresh start thiscity sorely needs. Dealing with the“free radicals” on the streets and stu-dent suicides — both symptoms of adeeper malaise — means identifyingand tackling the problems head on.This is not a law and order issue evenif it manifests as one. It is time to graspthe nettle.

The author is a Hong Kong-based journalistand the Editor of AsianConversations.comand SmartTravelAsia.com

Bring out the Big Tent

VIJAY VERGHESE

INSIGHT

It is said about literary works thattranslations are the other side ofthe carpet. They lose much of the

beauty. But when a court judgment inEnglish is translated into national lan-guages the result could be a nightmarelike the Tower of Babel. In an age-oldnation like ours which had only a

recent contact with western jurispru-dence translations could faceformidable hurdles.

The judiciary has launched an ambi-tious programme to make available judg-ments of the Supreme Court and highcourts in local languages. Importantjudgments run into hundreds of pageslike the celebrated Kesavananda Bharati,judges’ appointments cases, and recent-ly, the right to privacy judgment. Theyare no easy read, with footnotes and ref-erences at the bottom of the page. Thehangover of the Anglo-Saxon traditionleads to a sprinkling of Latin and Frenchphrases, apart from US andCommonwealth case law.

Moreover, several judges tend to beloquacious and have been criticised forthat. Late V R Krishna Iyer consistentlyrode a polysyllabic mare to tilt at wind-mills of social injustice in his classicjudgments. Several others also use exot-

ic words and syntax. Recently, ChiefJustice Ranjan Gogoi is reported tohave conceived a project to provideshort summaries of important judg-ments, but it has not taken off.

The judiciary is not digitally savvy,though it claimed recently that it isgoing paperless. In fact, it has just takenover 12 acres of the former Appu Gharnearby to store its papers. It is not yetequipped to use computers for transla-tion. Even if AI is used, robots wouldbe foxed by judges’ language. There isan apocryphal story in which CIAengaged computers to translateRussian. When it came to the biblicalsentence, “spirit is willing; but flesh isweak”, the printout read: Vodka is good;but the meat is awful. So a large numberof specially trained translators have tobe employed.

There are endless wrangles incourts, reflected in judgments, over the

use of simple words like “shall” and“may”. After long and intricate discus-sions, shall in a statute is sometimes“read down” as may and on other occa-sions, may is “read up” to mean shall.Law journals have a separate section onthe latest interpretation given by courtsto ordinary phrases.

Judgments are only part of the prob-lem. Legal draftsmen have often con-founded judges with woolly phrases.Some jurists think that half the litiga-tion in the writ courts is the conse-quence of bad draftsmanship. Whenjudgments are written, those provisionsrunning into several pages are cited ful-ly. This would make the task of thetranslators doubly difficult. Last week,a Jharkhand liquor law provision inHindi had to be translated twice intoEnglish to satisfy SC judges regardingits accuracy. The sections were namedin hybrid language, like “Rule106(Tha)”. The problem would be com-pounded if all these have to be trans-lated into 23 scheduled languages ofthe Constitution, including Bodo,Santhali and Sanskrit.

The SC has often criticised lawmak-ers for not correcting errors — eventypos — despite pointing them out.

Judges have to iron out clumsy clausesin law. On four provisions in the ExciseAct, the court wrote, “subjected toamendments from time to time, theyhave now become so complicated thatin order to discern their meaning, itbecomes necessary to read them backand forth several times”. In a similarsituation, a British judge remarked thathe tried holding the lines upside downtoo, with no result. If judges say so, whatwould a lesser translator do? The legalprofession treats words of statutes andjudgments like religious texts. With sev-eral translations, they would argue overcomparative translations till their jawsache and pockets runneth over.

It is well to remember the old adagethat hell is paved with good intentions.The translation move may be politicallycorrect, but the immediate need is toprovide ordinary people a simple sum-mary of judgments, as Gogoi planned.In the 1,000-page Kesavananda judg-ment, the judges themselves felt theneed to provide a summary. But thatsummary itself ran into controversybecause it is argued that the “basicstructure theory” came out of the sum-mary, not from the judgment.Quicksands abound in the legal field.

The Tower of legal BabelThe project to translate judgments to national languages will facemany snags

Hong Kong seems transfixed with the symptoms, not the cure

OUT OF COURT M J ANTONY

Men in white T-shirts and carryingpoles, seen in Yuen Long afterattacking anti-extradition billdemonstrators at a train station inHong Kong

Name of committee Chairman Dissent notes Year of submission

Fuller capital account convertibility SS Tarapore Surjit Bhalla 2006

Mumbai IFSC Percy Mistry* Percy Mistry 2007

FSLRC Justice Srikrishna PJ Nayak, JR Verma, KJ Uddeshi, YH Malegam 2013

Committee for evolving a composite Raghuram Rajan Shaibal Gupta 2013development index of states

14th Finance Commission YV Reddy Abhijit Sen 2014

Committee on Comprehensive Nachiket Mor Shikha Sharma, SS Mundra 2014Financial Services for Small Businesses and Low Income Households**

FRBM Review Committee NK Singh Arvind Subramanian 2017

Inter-Ministerial Committee for finalisation of Amendments to the Payment and Settlement Ac Subhash C Garg S Ganesh Kumar 2018

DIFFERING OPINION

*resigned from the committee in February 2007; **additional notes to the committee

Most of the dissentnotes have beenabout reconcilingdifferences betweenthe RBI and thefinance ministry.Committees wereexpected to narrowthe differences. Inmost cases, that neverhappened

OPINION 9> STAY INFORMED THROUGH THE DAY @ WWW.BUSINESS-STANDARD.COM

The only certainty about Boris Johnson’s election as British PrimeMinister is that trade and business can expect more uncertainty asfar as the process to leave the European Union (EU) is concerned.Mr Johnson has revelled in his maverick image in various public

positions he has held, from mayor of London to foreign secretary. But as hetakes charge at Downing Street on Wednesday, he may find himself up againstchallenges of far greater consequence than a dodgy project award or an argu-ment with Italians over Prosecco sales. Unlike the embattled Theresa May,Mr Johnson has showed his hand. He campaigned hard for “Leave”. He wantsa “hard Brexit” (meaning the UK would leave the EU, single market and cus-toms union) and, failing that, crashing out with “no-deal”. The stances maybe clear, but the implications of these positions on business are not.

His predecessor’s thrice-defeated Brexit deal, which saw the deadlinepostponed twice, underlined the polarisation of Parliament and the electorate.In his acceptance speech, Mr Johnson said he would “get Brexit done byOctober 31” with a “new spirit of can-do”. But he takes charge of a governmentthat is largely hostile to his swashbuckling Brexiteering. Two members of thegovernment have already resigned and several key Cabinet ministers, includingChancellor of the Exchequer Philip Hammond, were threatening to resign ifhe were elected. By-elections next week could reduce the Conservatives’slender seven-seat majority in the House of Commons to just two, making itdifficult for him to gain support for any Brexit deal he may negotiate beforethe new October 31 deadline. Also, Parliament has given Mr Johnson less of afree hand, voting, first, against a “no-deal” withdrawal and then voting againstParliament being prorogued to push through such a deal.

Mr Johnson now has a little over 90 days to negotiate an alternativedeal. The core of the problem that brought down Ms May remains: How todeal with the border between the Republic of Ireland, a EU member, andthe UK’s Northern Ireland. The issue is complicated by the fact that theConservatives depend for their Parliamentary majority on an Irish unionistparty, which does not want any exceptions for Northern Ireland in thisdeal. Ms May’s deal sought to address this with a “backstop”, which wouldentail the whole of the UK remaining within the EU for the duration of thediscussions over the new relationship but without any say in any rulechanges. Predictably, this projected indefinite diminution of the UK’s nego-tiating position — which was the proximate reason for Brexit in the firstplace — attracted opprobrium across party lines. Within the Conservativeparty, the “backstop” clauses heightened demands for the exit of Ms May,and Mr Johnson was at the forefront of those calls. Confusingly, however,he had voted for Ms May’s discredited deal in its third vote. With the UKeconomy expanding at its slowest pace since 2012, the chaos of “no deal” isthe last thing it needs.

Don’t tread on SebiThe market regulator needs financial autonomy

The Securities and Exchange Board of India (Sebi) has asked thefinance ministry to reconsider aspects of the Union Budget for2019-20 that seek to amend its governing legislation, the SEBI Actof 1992. The Finance Bill has made some major changes to require-

ments on the market regulator. For example, the proposed amendmentssuggest that three quarters of the surplus retained by the market regulatorevery year be handed over to the government. The remainder should gointo a “reserve fund” — but that, too will be capped. The level set by thegovernment is two years’ expenditure. This is not all that the governmentproposes. The amendments also would require Sebi to seek the approval ofthe government for any capital expenditure. Put these together, and anunfortunate pattern of reduction of a well-functioning regulator’s indepen-dence and powers becomes apparent.

While the government may reasonably argue why a market regulatorshould sit on any pool of capital at all — and the Comptroller and AuditorGeneral feels this undermines the parliamentary oversight of public funds— there are significant moral hazard questions that arise as a consequenceof these proposed amendments. The sums involved are not enormous. Unlikethe Reserve Bank of India, which earns a considerable income from its regularoperations, in 2016-17, Sebi earned just over ~200 crore from investmentincome; the remainder, just over ~500 crore, came from its regulatory actions.Sebi’s general reserve is estimated at ~3,800 crore in March 2019.

So the amount of funds the government is likely to receive from Sebiwill hardly make much of a difference to the government’s kitty, giving riseto concerns that the latest move is a desire to increase control over the reg-ulator. The Sebi chairman is right in arguing that the proposal is alreadybeing discussed by the Financial Stability and Development Council, andthat the amendment to the Sebi Act, through the Finance Bill, could havewaited for the Council’s final decision.

The Sebi employees’ association has written to the prime minister,pointing out that transferring the regulator’s surplus automatically to theConsolidated Fund of India is tantamount to regulatory action becoming“a kind of additional tax on market participants”. This is broadly correct.The letter goes on to warn that “perverse incentives” would be created.Governments always want to raise revenue, while Sebi has broader concernssuch as market stability. A moral hazard problem would be created, in whichthese two incentives would clash.

The control of capital expenditure is similarly troubling. It should beup to the regulator to decide if its duties require additional capital expendi-ture, through discussions of its duly constituted board. The fact is that ifSebi feels it is earning too much through fees on market participants, itscurrent mandate would mean that it would reduce its fees to broaden themarket. If it requires updated facilities and more staff to monitor increasinglycomplex financial markets, then the decision on this matter should be takenby the regulator with the consent of the board, not by the finance ministry.This is fundamental to what regulatory independence means. The govern-ment should rethink its insistence, especially as the stability and regulationof the Indian markets are very much in the broader national interest.

Volume XXIII Number 244

MUMBAI | WEDNESDAY, 24 JULY 2019

Former Reserve Bank of India Governor UrjitPatel’s talk on India’s banking sector atStanford University last June has not received

the attention it deserves. Patel sees no light at theend of a long tunnel. His diagnosis is debatable andhis pessimism seems overdone.

Three points emerge from Patel’s talk. One, thepresent non-performing asset (NPA) crisis largelystems from regulatory failures and public ownershipof banks. (Patel believes the two are linked). Two,Raghuram Rajan and Patel made a valiant attemptto rectify the failures of the past by tightening regu-lation during their tenures. Three,there are indications once again ofa lurch towards lax regulation and,therefore, Indian banking will con-tinue to be bedevilled by concernsabout stability.

The significant regulatory fail-ure, according to Patel, was allowinga credit boom to happen by relaxingnorms for company, group and non-banking financial company (NBFC)exposure. There is some merit inthis contention, although it’s notobvious that growth of 20 per centin non-food credit in 2007-12 wasexcessive. India’s credit boom mayseem a case of bad business judge-ment today. However, neither busi-nessmen nor bankers nor the regulator could haveanticipated the global financial crisis of 2007 thatderailed major projects set in motion earlier.

Public sector banks (PSBs) account for most ofthe NPAs. Since government spending is constrainedby the fisc, it uses PSBs to pump-prime the economyor boost preferred sectors. Over time, this results inhigher NPAs and capital infusion into PSBs by thegovernment. Bank lending to infrastructure and relat-ed sectors was thus a form of deferred governmentspending. One wonders whether that is as terrible

as it sounds. Massive PSB lending to infrastructurehas eased a long-standing constraint on economicgrowth. Hasn’t China done likewise for long — andquite successfully thus far?

After 2014 (when Rajan was governor and Pateldeputy governor), the RBI significantly tightenedregulation. The RBI’s Asset Quality Review resultedin vastly improved recognition of the NPA problem— witness the three-fold increase in NPAs at PSBs.Better recognition of NPAs was certainly needed.Talk to bankers, however, and they will tell you thatrecognition was carried too far. It seriously eroded

banks’ capital and undermined theirability to lend. This hurt economicgrowth and thereby banks’ abilityto manage the NPA problem. TheRBI overlooked the fact that growth,not NPA resolution, is the best wayout of an NPA crisis.

Patel says that the RBI’s February2018 circular removed banks’ discre-tion in dealing with defaults. Therewas a clear message to bankers: Nomore extend and pretend. The RBIplaced 11 PSBs under the PromptCorrective Action (PCA) frameworkthat placed restrictions on their lend-

ing. Alas, says Patel, much of the goodwork has since been undone. TheFebruary 12 circular was struck down

by the Supreme Court and this raised doubts over theability of the RBI to give directions to banks on NPAresolution. The government relaxed the PCA frame-work and brought five PSBs out of it.

The former governor may have spoken too soon.Within days of him giving his talk, the RBI issued arevised circular on NPA resolution to replace theFebruary 2018 circular. The new circular provides atime-frame for resolution that is more realistic. It doesaway with the draconian principle of declaring even asingle day’s failure to make repayment as default. It

affords some discretion to bankers and provides incen-tives for resolution. The RBI has asserted its power togive directions to banks on NPA resolution.

As for the PCA, it can only be a temporary measure.If extended for long and to a large number of banks, itends up hurting banks as well as borrowers. The relax-ation of the PCA framework was especially necessarygiven that the NBFC sector had moved into distress.

Patel concludes on a grim note. We are confront-ed with a trilemma in banking. It’s not possible tohave all of three things: Dominance of PSBs, inde-pendent regulation and adherence to debt-to-GDPtargets. Something has to give.

We need clarity on the independence of the bankregulator. Is there any legal impediment to the RBIimplementing “fit and proper” criteria for govern-ment-appointed directors on the boards of PSBs? Orimposing fines on PSBs that do not fill vacancies intop management or the board for long spells? Orspecifying a minimum compensation for indepen-dent directors on bank boards? Independence is notgiven on a platter, it often has to be wrested.

If indeed regulation can’t be effective, reducing thedominance of PSBs is one answer to the problem.Thisis already happening. The share of PSBs in bankingassets is down to 66 per cent and it should be down to50 per cent in a few years. Do we need to accelerate theprocess through selective privatisation? Patel does notsay so explicitly. He only asks that the governmentassess whether its return on equity at PSBs is adequate.

It’s not all gloom and doom in Indian banking.The RBI’s Large Exposure Framework is a big leapforward in managing risk. As Patel concedes, there isimprovement in the assessment of loans. The processof appointment of chairmen and managing directorsat PSBs is more rigorous than before. Fifty years afterbank nationalisation, it would be unfortunate if wewere to substantially abandon the public sector modelprecisely when the signs are promising.

T he writer is a professor at IIM Ahmedabad

This book “charts how the idea ofIndia took shape” on the manicuredcricket pitches of Mumbai long

before the country gained independence,and not so much on the muddy footballmaidans of Kolkata or the uneven hockeyfields of Lahore and Amritsar.

Incidentally, undivided Bengal andPunjab were provinces that sent the mostfreedom fighters to the Cellular Jail inthe Andaman and Nicobar Islands.Hockey and football were by far the morepopular sports among the masses innorthern and eastern regions of both

undivided and independent India.Cricket caught the popular imagination

later, mostly after India’s 1983 World Cupwin. India’s famous cricket team that defeat-ed West Indies and England in 1971 had littlerepresentation from eastern India, andBishan Singh Bedi was the only represen-tative of the north to be a member of boththe tours. One only need listen to Mr Bediand Kapil Dev to understand how parochialand steeped in Englishness the Indianteams of that era were.

In his exhaustively researched book,Prashant Kidambi, associate professor ofcolonial urban history at the University ofLeicester, argues that the Indian cricketteam that visited England in 1911 was thefirst effort at putting together a “represen-tative national” team. That team was nosymbol of nationalistic fervour aroused bythe Swadeshi movement of 1905 and thepartition of Bengal, which the British wereforced to undo in 1911.

The team was “constituted by, and not

against, the forces of empire.” If the team’svisit to England was to affirm the imperialbond at a time of political upheavals inBritish India, its composition was less rep-resentative of Indian social realities. Theteam had six Parsis, three Muslims and fiveHindus, including two Dalits. BhupinderSingh, the Maharaja of Patiala, all of 19 yearsold and anxious about his place in the impe-rial establishment, led the team.

The author has written engaginglyabout the Parsi pioneers, who overcameBritish resistance to start playing cricketin what was then Bombay in the late 19thcentury. There is also a chapter on “Ranji”and another on the travails of the Patialaroyal, the team’s captain. Another on the“Indian Summer” in England in 1911, tocoincide with the ‘Festival of Empire’ andgrand coronation ceremony in London, isa delightful read.

If Ranjitsinhji is considered the fatherof Indian cricket, few remember his con-temporary Jamsetji Merwanji, a Parsi gen-

tleman who was a world champion of “rac-quets”, a forerunner of squash, and was inLondon in 1911 to defend his title. Thecricket team found time to visit the boutsof nine Punjabi Muslim pehelwans, orwrestlers, including disciples of the famousGama Baksh.

Professor Kodi Ramamurti Naidu,dubbed the “Indian Hercules” and knownfor his “astonishing displays of strengthand endurance”, was another Indian whodrew crowds in England, and had becomea “totemic figure among nationalistseager to promote indigenous forms ofphysical culture.”

As the cricket team spent time inEngland in 1911, the flagbearers of nation-alism was Mohun Bagan football club thatdefeated the East Yorkshire Regiment in anIFA Shield match thousands of miles away

The author has followed Ashis Nandyand Ramachandra Guha to delve into thehistory of popularity of cricket in Indiaand its larger influence. The title of thebook is borrowed from English poetEdmund Blunden’s 1944 book, where he“reaffirmed the deeply entrenched viewthat cricket was truly authentic when it

was inviolately English”.As the author points out, Bluden’s book

had no subtitle since there could only beone Cricket Country. Mr Kidambi’s workreverberates with what Mr Nandy in 1989wrote in The Tao of Cricket that cricket isan Indian game accidentally discovered bythe English. Subsequently, Mr Guha in ACorner of a Foreign Field: The Indian Historyof a British Sport, seemed to celebrate thepopularity of cricket as a victory of the ideaof Nehruvian India.

Mr Guha argued that cricket’s popularityhad proved socialist leader Ram ManoharLohia and Rashtriya Swayamsevak Sangh’sM S Golwalkar wrong. Both considered thesport a sign of British imperialism andimplored people to play indigenous sportslike kabaddi instead. While cricket remainspopular, the construct of a Nehruvian Indianever permeated mass consciousness.

Prime Minister Narendra Modi has res-urrected a combination of Lohia andGolwalkar in politics. He is yet to questionthe frenzy around cricket but on occasionimplored in his Mann ki Baat broadcasts(of May 27, 2018) for people to play and pre-serve traditional Indian sports like pitthoo,

kho-kho, marbles, gilli-danda, and others.Mr Modi said traditional games enhancenot just physical ability, but also logicalthinking and make us aware of "our cultureand traditions".

The just concluded cricket World Cuphad millions watching, but market forceshave discovered there is money to be madefrom north India’s fascination for kabaddi;football is suddenly in vogue with the urbanyouth and hockey is seeing better days.Athletes like Hima Das are emerging fromdistant corners. Cricket's popularity in Indiacoincided with economic liberalisation. Thenext cricket World Cup will be held in India.With England finally winning a World Cup,there is renewed interest in the sport in thecountry of it birth. But has the sport reachedits zenith in the land it made its own at leastin the last couple of decades?

No light at the end of the tunnel?

An imported obsession

BOOK REVIEWARCHIS MOHAN

CRICKET COUNTRY: The UntoldHistory of The First All IndiaTeamPrashant KidambiPenguin, ~699, Pages: 453

His election amplifies the confusion

Boris and Brexit

FINGER ON THEPULSET T RAM MOHAN

Ignore the academic pride and posturing of thepast. Forget the linguistic arguments… datarule[s] the day....Data science is...the new look

of marketing”. I rubbed my eyes in disbelief when I saw the affil-

iation of the author of this: Northwestern University.This was the university that was home to ProfessorPhilip Kotler who conceptualised the idea of “brandmarketing” and whose 1967 book, MarketingManagement: Analysis, Planning, and Control, iseven today, 52 years later, a staple textbook in everybusiness school in the world.

The sentence that I quoted was from the prefaceof the book, Marketing Data Science, by ThomasMiller, also of NorthwesternUniversity. This book, unlikeProfessor Kotler’s classic, is full ofcomputer-based models and the useof the computer programming lan-guages R and Python to build modelsin marketing.

If what Professor Miller says istrue, there is an impending waste-land where we will see the carcassesof some currently high-flying andprosperous organisations (marketresearch companies, advertisingagencies, public relations firms...),job positions (product managers, marketing man-agers) not to mention all of the media industry(print, television, radio…) whose life-blood is adver-tising money spent to create and sustain “brands”.Collateral damage will affect not just Bollywoodstars but also cricket, soccer and tennis, whoseplayers are rewarded handsomely by the brandsthey endorse.

All these lucrative industries were built on thefirm belief that there is an intangible element toevery product or service beyond its physicalattributes— or even its price — and that intangible

element was captured in the concept of “brand”.This “brand” has its components as well: The“brand name”, which was supposed to be uniqueand catchy, a “tagline”, a string of four or five wordsthat conveyed the most crucial aspects of what itstood for (“Just Do It”, by Nike is an example), cre-atively designed elements ( the log design, thetypography used, the colour palette). All of thesewere supposed to combine and represent the“brand”.

Early successes in using these concepts were seenin the United States with, for example, De Beers’ 1947“Diamonds are Forever” campaign that made dia-monds an expression of love among common people

and not just an extravagant pur-chase by the very wealthy; the 1954Marlboro Man campaign madeMarlboro the smoke of choice for“cool, rugged men everywhere”,not to mention the myriad cam-paigns advertising soap brandsfrom Colgate Palmolive, Unileverand others. These soap advertisingcampaigns were such a dominantforce in the 1950s that even theradio and TV programmes thatthey ran on were dubbed “soapoperas”.

It is useful to trace back the economic and tech-nological forces that led to this outburst of brandadvertising because that may help us understandthe current movement against brands. The earlypart of the 20th century saw, thanks to break-throughs in chemical technology, the arrival of massproduced chemical-based items like soaps, deter-gents, cigarettes, breakfast cereals and so on thatwere hitherto the work of small neighbourhoodcraft shops. These large scale producers, particularlyin the United States, needed a way to present theircommoditised products as different from that of

their competitors. Their willingness to spend largeamounts on advertising synergistically led to thesudden emergence and growth of, first, mass cir-culation periodicals, followed by advertising sup-ported radio and then television. Concepts like“brand equity” started circulating and by the 1960s,advertising agencies came into being to providesuch services.

It is in this context that Kotler articulated theconcept of “marketing” as a field of learning andpostulated that the “brand” is as crucial a variableas price in influencing demand.

There is a possibility that thinking, like ProfessorMiller’s, and debunking concepts like “brandimage” and “brand” is merely an example of thekind of overstatement that new technologyapproaches tend to make. The consulting firm,Gartner, even has a theory around this, that theycall the “hype cycle”. The start of a hype cycle iswhen a technology breakthrough happens, butusable products that are commercially viable haveyet to happen. However, early publicity soon createsa “Peak of Inflated Expectations”. Soon it is discov-ered that there are scores of failures and only a fewsuccesses, which then results in the next phase, the“Trough of Disillusionment”. Many producers dropout while a few courageous ones hang in there andtry and prove themselves to the few early adopters.Then comes the “Slope of Enlightenment”, a long,multi-year (often multi-decade) period where prod-ucts that really deliver on— or near— the originalpromise appear. Finally, comes the “Plateau ofProductivity” where mainstream adoption of thenew technology happens.

The current rush towards emphasising the mea-surable outcomes of marketing like clicks, form-fills, add-to-carts, orders, orders accepted and paidfor with no returns is dramatically different fromlong-established measures of media effectivenesssuch as what percentage of a product’s potentialaudience has become “aware” or have the mode tobecoming "interested" or have graduated to “desire”the product or have resulted in “action”.

On the face of it, it represents progress since itmeasures ultimate outcomes. But, by skipping themeasurement of the earlier stages through which asales process works, are we taking the online adver-tising technology to the dangerous stage of the hypecycle, the “Trough of Disillusionment”? A sense ofrealistic expectations will dawn when the samesophisticated machine learning models thatattempt to predict clicks and orders are engaged tomodel earlier stage variables such as awareness,interest and desire. So, a great deal of mathematicalinnovation lies ahead of us.

The writer is hard at work on a free textbook in 22 Indianlanguages that will introduce machine learning to Class 8Students in India. [email protected]

Au revoir, brands?The current focus on data to measure marketing success couldherald the end of an era — or the beginning of a hype cycle

ILLUSTRATION: BINAY SINHA

AJIT BALAKRISHNAN

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DELHI THE HINDU

WEDNESDAY, JULY 24, 201910EEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEE

CMYK

M ND-NDE

EDITORIAL

J.V.R. Prasada Rao

The Joint UN programme onAIDS, commonly known asUNAIDS, is facing one of the

worst challenges affl��icting the global AIDS response — this time anexistential threat questioning itsvery relevance. The UN SecretaryGeneral, António Guterres, is expected to appoint a new executivedirector after the departure of Michel Sidibé in May 2019 on the recommendation of the programmecoordinating board which manages the organisation. There arestrong contenders from Africa andthe U.S. in the reckoning amongthose who have been shortlisted.

A pivotal roleAt such a crucial time, it is disturbing to hear voices again questioning the relevance of UNAIDS forthe global response.

There are suggestions that AIDSshould go back to the WorldHealth Organisation (WHO) whereit originally belonged to some 25years ago. And that the new executive director should be equipped

with an exit strategy to wind upthe organisation.

Since its establishment in 1994,UNAIDS has been able to successfully mobilise world opinion tomount an exceptional response toan epidemic which has consumedover 20 million lives with still noeff��ective treatment or cure. TheUN General Assembly Special Session (UNGASS) 2001 was a gamechanger with the adoption of apolitical resolution that itself wasexceptional in many ways. Thecreation of a Global Fund to FightAIDS, Tuberculosis and Malaria(GFATM) and the slashing of pricesof AIDS drugs by Indian genericshave brought treatment within thereach of many countries. Todaysome 22 million people are underantiretroviral therapy (ART) andpreventing mothertochild transmission of HIV has become anachievable goal by 2020. The organisation has provided leadership to many countries which in 10years (20012010) could halt theepidemic and reverse the trend.

The epidemic is still aliveHowever, at a time when it shouldbe leading the global response toend AIDS as a public health threat,the organisation has started to falter in its strategy. First came theextremely optimistic messagingblitz that the world was going to

see the end of AIDS very soon.This is far from true. Regions suchas eastern Europe and Central Asiaand West Asia are nowhere nearreaching that goal, with manycountries such as Russia witnessing a raging epidemic among drugusers and men who have sex withmen (MSM) communities. Withthe top leadership in UNAIDS exhorting countries to bring AIDS“out of isolation” and integratewith health systems, the politicalleadership in many countries havethought that AIDS is no more achallenge.

Second has been the thinkingthat the AIDS epidemic can simplybe treated away by saturating antiretroviral (ARV) coverage. Nothingcould be farther from the truth. Itis forgotten that AIDS aff��ects thepoor, the marginalised and criminalised communities disproportionately as they face challenges inaccessing the ‘test and treat’ programmes. The ever increasingnumber of young people who are

joining the ranks of vulnerablepopulations do not get preventionmessages like in the past. Nationalprogrammes do not any more consider condoms, sexual educationand drug harm reduction as central to the prevention of HIV transmission that results from unprotected sex and drug use. Fundingfor nongovernmental organisations and communitybased organisations working on preventionhas virtually dried up.

Third has been the weakeningof country leadership of UNAIDSin many highprevalence countries. Senior countrylevel positions are, in many instances, heldby people who do not possess thecore competence to constructivelyengage political leadership to undertake legal reforms and provideaccess to services to marginalisedpopulations.

Weakening activismBut the biggest setback has beenthe lost voice of vulnerable communities which was the main driving force of AIDS response in thedecade after UNGASS. Activismsurrounding AIDS has suddenlyfi��zzled out emboldening manycountries, especially in Africa, tofurther stigmatise and discriminate by enacting new laws that criminalise vulnerable sections ofsociety.

To add to its woes, the chargesagainst one of the senior most staff��and his exit from the organisationhave seriously compromised UNAIDS at a time when the global response needs its leadership themost. The new executive directorwill have an unenviable task of notjust restoring the credibility andrelevance of the organisation butstrengthening its presence atcountry level and making it moremeaningful to the communitieswhich look to it for leadership. Thenew executive director has towork relentlessly to place prevention of the epidemic and empowering communities at the centreof global response.

With 1.7 million new infectionsand one million deaths occurringevery year, we can’t aff��ord to dropthe ball half way. The commitmentto end AIDS by 2030 is ambitiousbut not impossible to achieve.What we need is a reenergisedUNAIDS with a strong and fearlessleadership from a person of highintegrity and commitment alongwith a sincere eff��ort to remove thedeadwood from the organisation.Any thought of winding it up orgiving the mandate back to WHOwould be suicidal at this moment.

J.V.R. Prasada Rao is a former Health

Secretary, Government of India. The views

expressed are personal

Faltering steps in the anti-AIDS march The commitment to end the AIDS pandemic by 2030 needs strong and fearless leadership

GE

TT

Y IM

AG

ES/I

ST

OC

KP

HO

TO

more letters online:

www.hindu.com/opinion/letters/

Ties between India and Pakistan are at an ebb — their lowest in two decades. The

thread from this phase, as a seriesof events — the Kargil war (1999),the Agra Summit (2001), the attackon Parliament (2001) and Operation Parakram (200102) — meant asustained period of deep hostilities, with diplomatic missionsdowngraded and travel routestruncated. Since 2015 and PrimeMinister Narendra Modi’s Lahorevisit in the same year, the leadersof both countries have not met fortalks. In mid2018, the backchannel diplomacy between the National Security Advisers of bothcountries was called off�� by Pakistan, while in September 2018, India called off�� a planned meetingbetween the Foreign Ministers inNew York. In the wake of the Pulwama terror attack in Jammu andKashmir in February this year, India attacked terror targets in Pakistan which in turn sent fi��ghter jetsto the border. Subsequently, afterIndia moved missiles and deployed submarines, Pakistanraised a full air alert and imposedan airspace ban that lasted till midJuly.

Unbroken threadWhat has been disconnected fromall those tensions are the talks onthe Kartarpur corridor. The off��erfrom Pakistan’s Prime Minister Imran Khan to open the corridor wasconveyed fi��rst by Pakistan ArmyChief General Qamar Javed Bajwa,and accepted by Mr. Modi, marking a rare moment of coordinationbetween the two nations.

That the talks have continuedthrough one of the most diffi��cultyears in the relationship is equallyremarkable; there have been threerounds of technicallevel meetingsto ensure both sides complete theinfrastructure needed before November 2019, the 550th anniversary of Sikhism’s founder Guru Nanak.

The symbolism for pilgrimswho will be able to travel from Dera Baba Nanak town in Punjab tothe Gurdwara Darbar Sahib Kartarpur just a few kilometres insidePakistan, which are sites whereGuru Nanak spent his last fewyears, goes well beyond the dateand year. This is a route that theGuru and his followers traversedwith ease for half a millennium until Partition resulted in the IndiaPakistan border cutting through it.While Sikh pilgrims have been given easy access since then to GuruNanak’s birthplace at Nankana Sahib, the circuitous 200 km route toKartarpur via AmritsarWagah hasbeen off�� limits. The Kartarpurshrine has one of the last copies ofthe original Guru Granth Sahib;there are some who believe that itcontains not only the wisdom ofthe 10 Gurus but is itself the 11thand last Guru. Giving life to thewishes of so many will also ensurepolitical dividends in India, an aspect no government in the State orat the Centre can ignore.

Some irritantsDespite the rich signifi��cance of thecorridor, there were many reasonsfor the earlier hesitation to revivethe project. The Kartarpur corridor project is an issue that hasbeen raised by India for several decades, with New Delhi’s reasonsfor wanting the corridor clear. However, in the case of Pakistan,these have not been as transparent, with the military establishment’s surprise backing onlyraised doubts on whether Islama

bad has an ulterior motive. In adossier handed over during thelast round of talks on Kartarpur onJuly 14, India spelt out its apprehensions over Pakistan allowingseparatist Khalistani groups, including those funded by groupsbased in the United Kingdom, theUnited States and Canada, to tryand infl��uence pilgrims. Of specifi��cconcern is the ‘Referendum 2020’plan by the Sikhs for Justice group(banned by India).

This group has already held aseries of public events in the U.S.and the U.K. demanding a ‘worldwide referendum’ on a separateSikh state. The other irritant is thepossible use of the corridor fordrugs and arms movement; thereare many routes and tunnels at theborder between the two Punjabs.The terror threat by Pakistani Punjabbased antiIndia groups suchas the LashkareToiba and theJaisheMohammad is also a constant concern.

Agreeing to the Kartarpur corridor means the government hasmade an exception from a matterconcerning national policy for amatter of faith. In the last fewyears, every avenue has been shutdown from those for offi��cial, bilateral and regional (South Asian Association for Regional Cooperation) talks to even those for traveland tourism. Trade too has groundto a halt with crossLine of Control(LoC) trade route suspension thelatest casualty.

With such strictures in place,New Delhi’s decision to embark ona course that will need regular andrepeated IndiaPakistan meetingsis nothing short of a breach of itsotherwise fi��rm “no talks withoutterror ending” policy. For example, at a time when Indian and Pakistani Ministers do not even holdtalks when they meet at multilateral conferences, New Delhi senttwo senior Ministers to Pakistan toparticipate in the groundbreakingceremony for the event. It remainsto be seen who the governmentwill send to the inauguration, andwhether Mr. Modi, who has likened building the Kartarpur corridor to the fall of the Berlin wall,will grace the occasion.

A range of possibilitiesWith the Kartarpur exception toIndia’s policy on Pakistan now established, it is necessary to seewhether it can be built on to createa mechanism for broader conversations between India and Pakistan. The obvious extension fromthis would be for having otherfaithbased “corridors” for Hindu,Muslim and Sikh pilgrims in bothcountries; this would be in addition to the list of 20 shrines (15 inPakistan, fi��ve in India) that werenegotiated under the 1974 Protocolon visits to Religious Shrines.

The template that Kartarpurhas given both sides is also worthconsidering for the format of otherbilateral negotiations given thatthe talks have been immunisedfrom both terror attacks and election rhetoric. The venue of thetalks, at the AttariWagah zeropoint, lends itself to more successful outcomes too away from theglare of the media, without focuson arrangements for both parties.The two sides can cross over, meetfor the duration of talks and returnafter issuing a prearranged jointstatement.

The timing of the Kartarpur

opening may also lend itself to exploring other bilateralengagements.

Ahead of the next plenary of theFinancial Action Task Force (FATF)in October, Pakistan will remainunder pressure to keep terrorgroups subdued. According to various reports, infi��ltration fi��gures atthe LoC are signifi��cantly lower (a43% reduction since the Balakotstrikes in February); offi��cials havemarked about 20 terror camps inPoK they believe have been “shutdown” recently. Civilian and military casualties from ceasefi��re violations have also reduced. Pakistan Prime Minister Imran Khan’sgovernment, which has been buoyed by Mr. Khan’s U.S. visit andby Pakistan’s newfound acceptance in the international community for its role in Taliban talks,and Mr. Modi’s government, whichhas been bolstered by its strongelectoral mandate, will also be inthe strongest positions politicallyto forge agreements.

Thus, it would be a travesty towaste the opportunity made possible by the Kartarpur corridor, andby extension, the founder of theSikh faith himself (revered by Hindus and Muslims in India and Pakistan) to bring both countriesback to the table for talks. Themost famous story at Kartarpur isthe one of the ‘miracle’ that GuruNanak wrought after his death ashis Hindu and Muslim followersdebated late into the night whether their Guru should be crematedor buried. When they awoke, hisbody had vanished, replaced byfl��owers which they divided up.The Guru Nanak’s ‘samadhi’ andgrave were built side by side. Aspilgrims across the border pay avisit in November, it should beclear what the bigger miracle is:that the Kartarpur exception hasbeen made at all.

[email protected]

A bridge across the India-Pakistan abyss It would be a travesty to waste the opportunities made possible by the Kartarpur corridor plan

Suhasini Haidar

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Trump and the ‘K’ wordThe claim by U.S. PresidentDonald Trump that PrimeMinister Narendra Modibroached the subject of Mr.Trump’s mediation on theKashmir issue during themeeting of the two leadersin Osaka in June, isstunning (Page 1, “I wouldlove to be a mediator onKashmir: Donald Trump”,July 23). Is it a white lie? Oris it a political gimmick?Even if India had sought hisassistance, the fact that theU.S. has all along beenproviding militaryassistance to Pakistanwould by itself makeAmerica very unsuitable asa mediator.B.V.K. Thampi,

Thiruvananthapuram

■ Mr. Trump’s off��er couldwell be a trap, a product ofhis meeting with the PakistanPrime Minister. The U.S. hasa history of long friendshipwith Pakistan. There may bea hitch at present in their

relationship but selfinteresthas always been a priority inAmerican foreign policy. Theoff��er may be a part of astrategy relating to PakistanChina policy. Once we aredrawn to the mediationtable, our contention ofsovereignty over Kashmirwill be jeopardised. S. Rajagopalan,

Chennai

■ It is signifi��cant that as noless than the POTUS himselfhas named the Indian PrimeMinister as personally havingsought Mr. Trump’smeditation, it is in the fi��tnessof things and in keeping withthe best parliamentarytraditions that the PrimeMinister off��ers his ownclarifi��cation on the fl��oor ofthe House even if it meanscausing personalembarrassment to Mr.Trump, who is not known toobserve diplomatic niceties.If Mr. Modi chooses toremain silent fearing adiplomatic backlash from the

U.S., a doubt about who iseconomical with the truthwill gain ground hurting thePrime Minister’s credibility. S.K. Choudhury,

Bengaluru

■ India may maintain that theKashmir issue should beresolved bilaterally but thefact is that there have beenregular global interventionsas far as IndiaPakistanrelations are concerned.During the Kargil intrusionsin 1999, it was the Clintonadministration which ledPakistan to step back. Alsoafter 9/11, it was the U.S. andthe U.K. which helped inblacklisting Pakistanbasedterror outfi��ts. India has reliedon global support when itcomes to cornering Pakistan.Therefore, Mr. Trumpwanting to be a mediatorshould not raise hackles.Harvinder Singh Chugh,

Jalandhar, Punjab

■ Mr. Trump is turning out tobe an inexperienced

statesman, examples beinghis meddling in Obamacare,his unilaterally scrapping theIran nuclear deal, verbalattacks on European leadersand his mishandling of theimmigrants issue in the U.S.Mr. Trump needs to set hisown house in order fi��rstbefore he can even think ofmediating on Kashmir.T. Anand Raj,

Chennai

■ The U.S. has most oftenbeen at the wrong end ofunderstanding thegeopolitical aff��airs ofdeveloping countries,Vietnam, Iran and Iraq beingexamples. America’s attemptto help these countries hasended in disastrous results.In the Kashmir confl��ict, amediator must understandthe sociocultural context ofthe State as well as its historywhich Mr. Trump is clearlyunaware of. I am sure that the PrimeMinister, despite hisshortcomings, did not raise

Narcotic hubThat it is not just youngstersfrom ‘dysfunctional families’but also those from ‘perfectlynormal families’ who arebecoming drug victims“solely for recreationalpurposes” is alarming(’Ground Zero’ page,““Ecstacy and the agony”,July 20). This is possibly dueto a lack of proper parentalmonitoring, compoundedwhen one or both parentsis/are working abroad as inKerala. The pocket moneybeing given to middle andupperclass youngsters isway beyond basicrequirements. The statement thatUthamapuram is “notoriousfor ganja trade but remainsout of bounds forenforcement agencies” isbaffl��ing. The “Student PoliceCadet” scheme must beemulated across India.Kosaraju Chandramouli,

Hyderabad

the question of mediationseriously with Mr. Trump.Observing the U.S.’s previousattempts at mediation, itwould be much better if theprocess involved only Indiaand Pakistan even if it takesanother 70 years.Hannah Jacob P.,

Bengaluru

The ISRO modelThe successful launch ofChandrayaan2 demonstrateswhat India is capable ofdoing if there is unwaveringfocus and funding. Thesuccessful model of ISROshould be replicated in thedefence sector especiallywhen India is spendingbillions of rupees buyingarms. If we can develop acredible weaponsmanufacturing ecosystemthat is on a par with ourspace industry, we can savebillions and also tap thebillion dollar internationalweapons market.Dr. N. Rathan Prasad Reddy,

Gajwel, Telangana

LETTERS TO THE EDITOR Letters emailed to [email protected] must carry the full postal address and the full name or the name with initials.

In the past, a tour of the West Indies was deemed the

toughest endeavour for any cricketer. Reputations

were either enhanced or lost and fractures seemed

imminent in the battles against the fi��ery fast bowlers,

while the crowds requested the perfumeball, a euphe

mism for a nasty bouncer. But times change, and the in

herent quality of the Caribbean squads has declined so

much that a sporting visit to the isles with their sunny

beaches is seen as an exercise towards etching tri

umphs, fattening batting averages and multiplying bow

ling yields. With this as the backdrop, India will fl��y half

way across the earth for a set of three Twenty20s —

interestingly, two of them are being hosted in the Unit

ed States of America — three ODIs and two Tests against

the West Indies from August 3 to September 3. India will

be the favourites across the three formats, though in li

mited overs games, where the abridged nature of the

sport tends to iron out the fl��aws, the host might fancy

its chances. The tour, coming as it does close on the

heels of the World Cup in England, presents an oppor

tunity for India to look ahead, make a few changes in

personnel and prepare for the future. Transition always

coincides with the quadrennial World Cup and India

too is part of that global trend.

M.S. Dhoni has straddled three generations, the one

that had Sachin Tendulkar, the second with the likes of

Yuvraj Singh and the latest under Virat Kohli as captain.

The former India captain has held fi��rm in a storied ca

reer of triumphs, losses, frenzied runs, sharp catches

and quicksilver stumpings, but at 38 he is near his crick

eting twilight. Though he avoided retiring from the blue

shade by preferring to serve the Army in his role as an

honorary lieutenant colonel, Dhoni presented an op

portunity to M.S.K. Prasad and his fellow selectors to

fasttrack Rishabh Pant as the fi��rstchoice wicketkeep

er batsman across all formats. Dhoni, who retired from

Tests in 2014, might still make appearances in the shor

ter versions, and there is speculation about next year’s

Twenty20 World Cup in Australia being his preferred

last stop. But it all depends on what the selectors and

Kohli prefer as they look at building the team afresh for

the 2023 World Cup in India. The imminent West Indies

tour will help the team management get a fair idea

about the potential in the likes of Shreyas Iyer, Mayank

Agarwal, Manish Pandey, Rahul Chahar, Krunal Pan

dya, Washington Sundar, Khaleel Ahmed, Deepak Cha

har and Navdeep Saini, besides the other regulars. The

opposition may be depleted, but for these players,

hope fl��oats and a crucial August awaits.

Caribbean cruise India goes to the West Indies sensing

more cricketing opportunities than threats

Facing a furore in Parliament over the issue, the go

vernment has clarifi��ed in no uncertain terms that

Prime Minister Narendra Modi did not request

U.S. President Donald Trump to “mediate or arbitrate”

on the Kashmir issue, as Mr. Trump claimed on Mon

day. Addressing Parliament, External Aff��airs Minister S.

Jaishankar said India remains committed to its policy of

discussing all outstanding issues with Pakistan only bi

laterally, and assured the House that Mr. Modi did not

raise this with Mr. Trump at their recent meeting in Osa

ka during the G20 summit. In making the claim that

has been roundly denied by New Delhi, Mr. Trump

breached several welllaid diplomatic protocols, includ

ing one against discussing privileged conversations

with a leader, during a public conversation with anoth

er. Mr. Trump also said a “lot” of his talks with the Pa

kistan Prime Minister would focus on India and Afghan

istan, an odd departure from the precept of putting

bilateral issues to the fore, and being more discreet

when discussing sensitive relations involving other

countries. For New Delhi, it may be time to recognise

that Mr. Trump’s comments are a sign of new realities in

international diplomacy, where leaders care less about

niceties and more about open communication. Mr. Mo

di will have to prepare accordingly for some plain

speaking when he visits the U.S. and meets with Mr.

Trump, as he is expected to, in September this year.

In the short term, the government’s decision to ad

dress the claim by Mr. Trump will have nipped any re

percussions in the bud. The government should pursue

the issue through diplomatic channels with the U.S. go

vernment, and determine whether Mr. Trump made

the comments out of confusion or deliberately. India

has always opposed any suggestion of thirdparty me

diation on Jammu and Kashmir; both the 1972 Shimla

Agreement and the 1999 Lahore declaration included

India’s and Pakistan’s commitment to resolving issues

between them. It is unlikely that Mr. Modi would have

spoken out of line with this policy, and the most charit

able explanation for Mr. Trump’s new contention is that

he mistook India’s appeal to the international commun

ity to hold Pakistan accountable for terror groups on its

soil that carry out attacks in Kashmir, for a general de

sire for mediation. Mr. Trump’s comment in March that

the U.S. successfully mediated for the release of cap

tured fi��ghter pilot Abhinandan by Pakistan may have

even given him some hope that the U.S. could play a

larger role on the Kashmir issue, and New Delhi would

need to address that. A more worrying proposition is

that Mr. Trump took the line favoured by his Pakistani

interlocutors on Kashmir as a way of enhancing his own

plans for a pullout from Afghanistan with Pakistan’s

help on security and talks with the Taliban. While the

damage from Mr. Trump’s words may not have a very

lasting impact on IndiaU.S. ties, that from any rushed

measures to force a resolution in Afghanistan will have

farreaching and lasting impact, including on India.

What suits TrumpThe U.S. President violated diplomatic

protocols in talking of mediation on Kashmir

EEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEE

THE HINDU DELHI

WEDNESDAY, JULY 24, 2019 11EEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEE

CMYK

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OPED

Indian castoroil has now been proved to bean excellent lubricant and the scarcity ofmineral oils here has made people to resortto the vegetable lubricant so much so that itsprices have soared very high in the pastsome months. In February 1918 the export ofcastoroil was restricted to the United Kingdom but the restriction was removed on22nd February 1919. Owing to the failure ofthe southwest monsoon in June and July,the 19181919 crop of castorseed was about25 per cent, smaller than the large crop of19171918. There was a strong local demandfor the oil which was extensively used as a lubricant in the absence of the usual minerallubricating oil. Local prices helped by speculation, it is stated, rose considerably varyingfrom Rs. 125 to Rs. 225 per candy of 500 lb.and reached fi��gures at which the Ministry ofFood was unwilling to buy and increase itslarge stocks in England. The total shipmentsamounted to 559,881 gallons in 191819against 920,758 gallons during the previousyear, practically the whole of which went tothe United Kingdom. The scope for the increased production of castor as a lubricantthus promises to be wide; and it would bewell if the Agricultural Department woulddevote some attention to this raising of castor seeds.

A HUNDRED YEARS AGO JULY 24, 1919.

Castor-oil prices.

The Nagaland government’s move tocompile a Register of Indigenous Inhabitants of Nagaland (RIIN) opensup possibilities in the context of thedecision to link the register to the Inner Line Permit (ILP) system withouta consensus on the defi��nition of an‘indigenous inhabitant’.

One such possibility is of RIINpushing the negotiators engaged inthe ongoing Naga peace talks to articulate new and hardened positions onthe contentious issue of integrationof contiguous Nagainhabited areas.

Though the offi��cial notifi��cation onRIIN has not mentioned a cutoff�� dateto compile the proposed register, theauthorities in Nagaland have till dateissued indigenous inhabitant certifi��cates using December 1, 1963 as thecutoff�� date. Nagaland was inaugurated as India’s 16th State on this datefollowing the ‘16point agreement’between the government of Indiaand the Naga People’s Convention onJuly 26, 1960.

Opposition from NSCN (I-M)The National Socialist Council of Nagalim (IsakMuivah), which has beenengaged in peace talks with the government of India since 1997, has opposed the compilation of RIIN asserting that “all Nagas, wherever theyare, are indigenous in their land byvirtue of their common history”.

A statement issued by the ‘Ministry of Information and Publicity’ ofthe selfstyled Government of the People’s Republic of Nagalim reads:“The present move of the State government to implement [the] Register of Indigenous Inhabitants of Nagaland (RIIN) is contradictory to theinherent rights of the Nagas. It is politically motivated to suit the interestof the groups advocating for the ‘16Point Agreement’. The ‘NagalandState’ does not and will not representthe national decision of the Naga people. It was formed purely to dividethe Nagas.” The selfstyled government of the People’s Republic of Nagalim is the parallel government runby the NSCN(IM).

On June 29, the Nagaland government notifi��ed that RIIN “will be themasterlist of all indigenous inhabitants” of the State. All those to be included will be issued “barcoded andnumbered indigenous inhabitantcertifi��cates”. It added that all existingindigenous inhabitant certifi��cateswould become invalid once the process of compiling RIIN is completedand fresh certifi��cates issued.

RIIN is diff��erent from Assam’s National Register of Citizens (NRC) asexclusion or inclusion in RIIN is notgoing to determine the Indian citizenship of anyone in Nagaland.

Three conditionsSince 1977, a person, in order to beeligible to obtain a certifi��cate of indigenous inhabitants of Nagaland, hasto fulfi��l either of these three conditions: a) the person settled permanently in Nagaland prior to December 1, 1963; b) his or her parents orlegitimate guardians were payinghouse tax prior to this cutoff�� date;and c) the applicant, or his/her parents or legitimate guardians, acquired property and a patta (landcertifi��cate) prior to this cutoff�� date.

The compilation of RIIN also involves the complexities of decidingclaims in respect of children of nonNaga fathers as well as nonNaga children adopted by Naga parents.

If the Nagaland government goesahead with a compilation of RIIN

with this cutoff�� date, then all Nagapeople who have migrated to theState from the neighbouring States ofAssam, Manipur and Arunachal Pradesh and elsewhere in India after thisday will have to be excluded.

The NSCN(IM) statement adds,“Nothing is conclusive on the Nagaissue, until and unless a mutuallyagreed honourable political solutionis signed between the two entities.Therefore, any attempt to dilute thefi��nal political settlement by justifyingany past accord of treasons shouldbe seriously viewed by all Nagas.”

This clearly indicates the opposition the Nagaland government mayhave to face if it goes ahead with themove to compile RIIN. The Centreand the NSCN (IM), which is the largest among all armed Naga rebelgroups, signed a Framework Agreement in 2015, the content of whichhas still not been made public, inturn leaving room for speculation onthe contentious issue of integrationof all contiguous Nagainhabitedareas of Assam, Nagaland, Manipurand Arunachal Pradesh.

Unless otherwise clarifi��ed throughan offi��cial notifi��cation, the proposedlinking of RIIN with the ILP systemmay require large numbers of nonindigenous inhabitants of Dimapur district, more particularly the commercial hub (Dimapur town), to obtainan ILP to carry out daytoday activities. Most of them migrated from oth

er States and have been carrying outtrade, business and other activitiesfor decades. Migration also explainsthe higher density of population inDimapur district (409 persons persq. km) when compared to all theother districts in the State. The ILP isa travel document issued by the government of India to allow a ‘domestic tourist’ to enter Nagaland, and isvalid for 30 days.

Streamlining ILPThe Supreme Court, on July 2, dismissed a Public Interest Litigationseeking a directive against the Nagaland government’s move to implement the ILP in the entire State including Dimapur district, which hadso far been kept out of the purview ofthe ILP system.

A report prepared by the government, in collaboration with theUNDP in 2009, gave information onmigration patterns in Nagaland. Titled ‘RuralUrban Migration: A Thematic Report’, it said that in 2001, Assam was the State with the highestnumber of migrants to Nagaland(19,176 people), followed by Bihar(7,249 people) and Manipur (4,569people). A large section of people(about 45% of them in the case of Assam, 59% in the case of Bihar and25% in the case of Manipur) had migrated for better employment andbusiness opportunities.

While the move to streamline theILP system to curb the infl��ux of “illegal migration” to Nagaland has beenwelcomed by civil society, publicopinion is still divided on compilingRIIN without a consensus on the cutoff�� date.

As the Nagaland government hasbegun a consultation process on RIIN, it will be under pressure to delink the work of streamlining the ILPmechanism from the proposed register and put it on hold till the ongoingpeace process concludes and the fi��nal solution is worked out.

Besides this, the complexities thatmay arise in streamlining the ILP mechanism due to nonissuance ofdomicile certifi��cates or permanentresidence certifi��cates to a large number of nonNaga, nonindigenous inhabitants could also make the taskeven more diffi��cult for the NeiphiuRioled Nagaland government.

Sushanta Talukdar is Editor, nezine.com, abilingual online magazine on the Northeast

The Nagaland govt. will face many hurdles in its quest to compile a list of indigenous inhabitants

Sumi tribesman performing a warrior dance during the Tuluni festival inDimapur, Nagaland, in 2016. * GETTY IMAGES

The complexities of Naga identity

Sushanta Talukdar

The advancing monsoon has brought reliefto many parts of India, but its progress hasbeen slower than average and the country isstill in the midst of a rainfall defi��cit, with millions facing an acute water shortage. Water isessential for human survival, and for agriculture and industry. It is important that India —which has only 4% of the world’s renewablewater resources but about 18% of the world’spopulation — consumes water more sensibly.

In India’s pursuit of 100% electrifi��cationgoal, the country’s installed power capacitywill need to be doubled. Even with thegrowth of renewable energy (RE), coal hasbeen projected to be the backbone of theelectricity sector till 2030 and beyond. Managing the electricity needs of a countrythat’s already dealing with water scarcity willbe a challenge.

Located in water-scarce areasThermal power plants (TPPs) consume signifi��cant amounts of water during the electricity generation process. Most of India’sTPPs are located in waterstressed areas, andwater shortages have led to electricitygeneration disruptions and signifi��cant revenuelosses to the economy.

In December 2015, the Ministry of Environment, Forest and Climate Change issueda notifi��cation setting limits for water consumption by TPPs. However, the amendedEnvironment Protection (EP) Rules codifi��edin June 2018 ended up permitting TPPs touse more water than what was initially specifi��ed. There are certain mechanisms thatneed to be strengthened to make these regulations more eff��ective.

The Central Electricity Authority (CEA)recently released the format for TPPs to report on their annual water consumption.The power plants were asked to specify bothmetered and unmetered usage, report onthe source (like river, canal or sea), and statethe percentage of deviation from the waternorms, along with the reasons and the corrective measures undertaken.

These guidelines can be strengthened byincluding other relevant inputs. First, TPPsshould disclose the amount of water consumed by them in previous years, so that abaseline for water consumption per TPP can

be established, and subsequent reductionsin water consumption can be quantifi��ed. Second, these reporting requirements — currently in the form of an Excel sheet on theCEA website — must be added to the EPRules, to accord the disclosure process greater transparency and enforceability. Third,TPPs should also be required to submit verifi��able evidence (for example, water bills) tosupport and substantiate the disclosures.Without these, the selfreporting guidelineswill remain weak.

Finally, the data supplied by TPPs shouldbe placed in the public domain, so that theparameters disclosed can be studied in thecontext of regionspecifi��c water shortages,outages in the plants, and future researchand analysis in this fi��eld.

Specifying penaltiesSection 15 of the EP Act provides for a blanket penalty for contravention of any provisions of the Environment Protection Act orEP Rules: up to fi��ve years of imprisonmentand/or up to ₹��1 lakh fi��ne along with additional daily fi��nes for continuing off��ences. However, the Act does not stipulate specifi��c penalties for specifi��c off��ences. Perhaps this is anarea for review by the government, so thatwe have a more nuanced framework for enforcement and penalties.

Further, the relevant offi��cials in charge ofenforcement, across the Ministry and theCEA, should be identifi��ed, and their rolesclearly defi��ned. The implementation ofthese norms should include milestones andtimebased targets, and periodic monitoringof the progress of TPPs in makingimprovements.

In addition to reducing the stress causedby TPPs, shifting to a more aggressive REpathway will help India achieve its global climate targets. However, this will need furtherwork — particularly to regulate water consumption by specifi��c RE technologies. TheMinistry of New and Renewable Energy hastaken a fi��rst step by issuing a notice to Stategovernments on reducing water use forcleaning solar panels and to explore alternative mechanisms to ensure that solar panelsremain effi��cient.

India will need to balance the needs of itsgrowing economy with its heightening waterstress. Stringent implementation of standards for judicious water use by TPPs, combined with the promotion of RE and energyeffi��ciency, will off��er pathways for achievingthese goals.

The writers work with the energy programme at theWorld Resources Institute, India

Making the waterguzzlingthermal plants accountableAn improved monitoring mechanism can play a key role

Parul Kumar

Bharath Jairaj

Prime Minister Narendra Modi metSouth Korean President Moon Jaeinon the sidelines of the G20 summitlast month in Osaka. Both agreed tofi��nd common ground between Seoul’s ‘New Southern Policy’ and NewDelhi’s ‘Act East Policy’.

Today, India and South Korea havethe shared values of open society, democracy and liberal internationaleconomic order and their mutual engagement is at a historically unprecedented level. Signifi��cant strides havebeen made in several areas of scienceand technology.

The IndoKorea Science and Technology Centre, established in Bengaluru in 2010 as a collaboration between the Indian Institute of Scienceand the Korea Institute of Scienceand Technology, is a shining examplein this regard.

The emerging balance of power inthe region has also started infl��uencing the trajectory of defence ties. Coproduction of the K9Thunder howitzer is aprime example of the ongoing defence collaboration. With technologytransfer from South Korea, India’s Larsen andToubro plans to achieveover 50% localisation by manufacturing the key components of these weapon systems domestically as part of‘Make in India’. Further, both countries have regularised education exchanges. Additionally, there is regular security dialogue between India’sNational Security Adviser and the intelligence agencies of Korea.

The fallout of trade warThe ongoing trade war between U.S.and China has also started playing into IndiaSouth Korea bilateral ties asSouth Korean companies are nowfi��nding it more diffi��cult to sell theirproducts in the U.S., whenever theyare produced in their Chinesebranches. Growing trade tensionshave forced South Korean companiesto contemplate moving their production facilities to locations outside China. India is emerging as a prime benefi��ciary here, not least because ofthe considerable size of the Indian

domestic market, its cheap labourcosts and a stable legal system.

At the Osaka meeting, both leadersemphasised the need to create a new“synergy” to meet new challenges.Since India opened up its economy inthe early 1990s, IndiaSouth Koreatrade ties have grown from fewhundred million dollars to $22 billionat the end of 2018. Today the majoritems that India exports to South Korea include mineral fuels, oil distillates (mainly naphtha), cereals and,iron and steel. South Korea’s main exports to India include automobileparts and telecommunication equipment, among others.

Trade target likely to be missedHowever, despite the robust ties, noteverything is going as planned. Thetrade target of $50 billion by 2030 ismost likely to be missed due to lackof adequate eff��orts. The Comprehen

sive Economic Partnership Agreement, originally the coremechanism for economic ties, requires immediate upgrading. An early harvest agreed to lastyear, under which Indiaagreed to reduce tariff��on 11 commodities andSouth Korea on 17, failed

to see completion.More than eight years into its exis

tence, the Indian Chamber of Commerce in Korea (ICCK), is strugglingto fi��nd its due space in promotingeconomic and business ties andspends most of its time organising social and cultural events. A new, empowered commerce body is the urgent need of the hour. The IndianCultural Centre, established morethan ten years ago, has failed to reachout to common South Koreans, whostill fail to diff��erentiate between Indiaand Indonesia. While it teaches regional dance forms to children, thebigger picture of introducing India tothe general South Korean populationhas been lost. Further, social andeconomic discrimination against Indians working and living in South Korea is still a regular occurrence.

The writer is a Seoul-based geo-strategist

Giving ties with Seoul a facelift

IndiaSouth Korea relations are yet to reach theirfull potential despite making signifi��cant strides

Lakhvinder Singh

The United States plans to put a space workshop into orbit in 1972, the Space Agency announced here [Houston] yesterday [ July 22].The National Aeronautics and Space Administration (NASA) said the third stage of thegiant Saturn 5 rocket used to send Apollospaceships to the moon would be used tohouse the orbiting laboratory and observatory. The project will study man’s physiological and psychological responses in thespace environment, and provide more detailed information on his capabilities for extended manned fl��ight. The workshop is to befi��tted out on the ground and will belaunched into a 220 nautical mile circularearth orbit. It will be occupied by a crew ofthree astronauts who will follow in a smallerrocket about a day later. At fi��rst, the astronautscientists will spend about 28 days inthe orbiting workshop, but later visits lastingup to 56 days are planned. The laboratorywill be built into a modifi��ed SIVB third stageof the Saturn 5 rocket. The SIVB is used asthe Saturn 1B’s second stage.

FIFTY YEARS AGO JULY 24, 1969

Space workshop to be put in orbit

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mumbai | wednesday 24 july 2019 the tower of legal babel€¦ · bimal jalan committee reviewing...

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