Thursday, January 8, 2015

GDR

 What are  Global Depository Receipts (GDRs)? Recently GDR was in news related to black money in India. Examine the issue. 

GDRs are financial instruments used by domestic companies to raise funds from abroad. Recently SEBI has highlighted that through GDR black money is being routed in India . They argue that such GDRs are used for round tripping activities and are often not backed by real investors.
The likely modus operandi is as follows- investor A in India invests in an institution in one of the tax haven nations. The domestic company issues funds by issuing GDR to the same institution. However, by the time, the money reaches the domestic company, it has changed hands several times and therefore is detect its source. SEBI's report has shown links between investor A and the company raising GDR.
GDRs are an important source of funds for domestic companies. They have gained importance as the domestic sources of funding are few and costly. Rates of interest in India have been very high. Banks are reeling under high NPAs and therefore, are exercising caution in lending to private sector. In such a scenario, they have no choice but to raise funds from abroad using instruments like GDR.
Given the importance of GDR in fueling domestic growth, SEBI needs to strike a balance between curbing sources of black money and at the same time ensuring that licit financial flows are unaffected. Various approaches include- strengthening international cooperation, specific targetting of financial instruments like participatory notes which are used for routing black money

Pesticide on your plate

Vegetables are the noble folk of food world, loved equally by doctors and grandmothers. Vegetarians live off them and meat-eaters are told to live off them. But in Delhi, under every crunchy leaf of radish or the shiny brinjal hide dangerous amounts of pesticides that can slowly kill, shows a new study by JNU.
Pritha Chatterjee and Aniruddha Ghosal report how growers, consumers and the authorities may not even be aware of the scale of these toxins threatening people with coughs to cancer
When you eat your leafy greens and those elegant bhindis, you are doing yourself and the earth a world of good. Universally accepted as repositories of vitamins and minerals crucial to keeping good health, vegetables also help us do our bit for the environment and turn us into animal rights champions by default.
But Delhi could be committing serious offence to its long-term health by biting into that innocent-looking gobhi. A recent study by JNU’s School of Environmental Sciences is the latest among many to establish there is contamination from pesticides in vegetables grown and consumed in Delhi-NCR.
The JNU study tested in particular a category of toxic pesticides known as organochlorine pesticides (OCPs) over a year in winter and summer in seven agricultural areas in Delhi-NCR. Most vegetables exceeded limits set by different international regulatory agencies — meaning your vegetables are in fact a daily health hazard.
OCPs are included under a group of toxic compounds called persistent organic pollutants (POPs), which cause cancer and other health risks, including symptoms like vomiting and dizziness, according to many studies. The United Nations Environment Programme, through the Stockholm convention on POPs, listed 12 organochlorine pesticides as POPs. All of these were tested in the latest JNU study and found to exist beyond maximum residual levels in Delhi’s vegetables. The study was published in the international journal Environmental Science Pollution Research late last year.
As the authors point out in the study, since many of these vegetables are consumed raw or without much processing, the health risks can be compounded. “Regular consumption of these vegetables even with modest contamination can cause health problems in the long run,” the report says.
“Though we are continuing to do many projects on different categories of pesticides, this is the first ongoing study on OCPs because they are a particularly toxic category with 12 of 20 named by the UN as POPs,” Dr P S Khillare, professor and corresponding author of the study, said. He added that OCPs are also “very persistent in nature” because they are retained in the atmosphere, soil, water and in the vegetables for very long periods. Studies have also established that dietary consumption accounts for over 90 per cent OCP intake in humans, compared to respiratory or skin-based entry from atmosphere.
The authors conducted gas chromatography tests — a test used to separate and analyse compounds — to measure presence and levels of residues of 20 different banned OCP compounds on vegetable samples taken directly from fields in cultivated areas in Delhi-NCR. Six vegetables — radish, radish leaf, cauliflower, brinjal, okra and smooth gourd, all belonging to different vegetable categories such as root, leafy and fruit type — have been studied by JNU scientists.
Sapna Chourasiya, research scholar from JNU school of environmental sciences who is working on OCPs for her doctoral thesis, says tests found most of the OCPs were found to exceed national and international limits. The levels of pesticides in agricultural produce considered safe for consumption are defined as maximum residue limits (MRLs). In the study, the authors compared the levels of pesticides with MRLs set by the European Commission (EC), WHO and Prevention of Food Adulteration Act of India. “Comparison of our results with MRL values established by various agencies clearly indicates that OCP levels were above the established guideline value. It could be done to continued application of OCPs in vegetables to eradicate pest infestation,” the authors have said.

To measure health risks, the daily intake and non-cancer and cancer risks were individually calculated for every OCP. A compound known as aldrin was found to contribute to maximum non-cancer risks for both adults and children. The cancer risk attributed to OCP exposure in particular is considerable, with 12 OCPs identified as B2 class carcinogen, known as probable human carcinogens by the WHO. The study found a high lifetime cancer risk in children and adults, which authors said was “serious concern for Delhi population”. These risks, authors have said, should be taken into account for “future food safety legislation”, and farmers should again be educated.
The researchers say direct spray or atmospheric deposition has been found to be the most common pathway of contamination of vegetables. The concentration of pesticides were found to be higher in winters than in summers. “Vegetables grown in winter in lower temperatures have lower photodegradation of pesticides and the soil surface retention is high. In summers, thermal degradation is faster,” Dr Khillare explained.
Researchers say there is an “urgent need” to prevent further release of these compounds, and bring in “stricter regulatory legislation”.
Researchers said more government action is needed on the ground. “The ban on toxic agricultural products, in particular, OCPs seems to be only on paper even though the pesticide management act from 1968 was modified in 2008. Environmental and health safety is directly linked to poverty and the government needs to act on the root cause. If people are poor they will continue to buy these products, and we continue to be the world’s fourth highest producer of toxic compounds in pesticides,” Khillare said.
‘Can pesticides harm more than the poisonous Yamuna water?’
Parvat Kumar of Kailash Nagar village near Shahdara grows cauliflowers, brinjals, peas and melons on a patch of land along the Yamuna for a living.
Like Kumar, most farmers in Delhi grow crops on farmlands dotting both sides of the Yamuna. But the father of two does not know that a team from the School of Environmental Sciences at Jawaharlal Nehru University (JNU) recently carried out a study close to his fields in northeast Delhi’s Yamuna Pushta area. The study found toxic pesticides known as organochlorine pesticides in vegetables in excess of those prescribed by international bodies.
“How can vegetables make you sick? We wash them before they are sold,” Rupesh, another farmer, said.
Kumar says he keeps a steady stock of pesticides to ensure a good harvest. “Once crops are infested with pests, it is hard to retrieve them,” he said.
Most vegetables cultivated in Delhi end up in its kitchens. On Saturday morning, Kumar came to the Ghazipur sabzi mandi, making his weekly trip there to sell his vegetables. From the mandi, Kumar says part of his produce goes to retail shops in Northeast and Central Delhi. A huge part of it finds its way to shops in Noida and Ghaziabad.
He is careful to leave enough for his wife Asha, who squats along the ITO and Nizamuddin bridges selling vegetables, particularly in winter. On other days, Asha travels to Mayur Vihar, setting up her baskets “on the footpath opposite the Metro line”. “Rates at wholesale markets are fixed. So if we sell it on our own, the profit is more,” Kumar, whose children are aged nine and 12, said.
Kumar and other farmers like him, working in fields along the Yamuna, have not heard of guidelines on use or disposal of pesticides, let alone bans on certain kinds of pesticides. “Most of my cultivable land has already been taken away by the government and our jhuggis razed. I have to ensure that the land I am left with produces enough to sustain my family. If I do not use pesticides, how can I sustain cultivation?” he says.
Kumar buys the cheapest pesticides in the market. He does not know what they are made of and only identifies them by the colour of the packets.
Farmers say “conditions” in Delhi force them to use more insecticides and pesticides. “All the construction and habitation, and the pollution have rendered the area uncultivable. We have to stretch resources and fight against all odds for a good harvest every season,” Kumar said.
A year after the Delhi government constituted the first body to check for pesticide residue in fruits and vegetables, Kumar says no government official has visited his field to take samples. “Will they close our fields if they find medicines in the vegetables?” he asks.
Southwest of the river, at Madanpur Khadar village near Okhla, it’s the same story. Asked about what pesticides they use, Vijay Singh, a farmer and vegetable seller, points at the river. “It’s the government that has rendered this river poisonous. That’s the water that comes in our taps and we use on our crops.
How can anything be more poisonous than that water,” he said.
“Earlier, there was a lot more land and a lot more area for farming. But this is not the case anymore. Most of Madanpur Khadar is now an unauthorised colony for those who live here. Generations before us farmed here, growing vegetables along the river. It was enough for them, to eat and also earn profits. The river fed them, but now the river is so polluted that we have to do all we can to make our crops grow,” Raghubeer Singh Bhiduri, a villager, said.
Bhiduri says like most farmers in Delhi, he grows different crops depending on the season — melons, gourds, okra, cauliflower and spinach. “Most of our produce are sold at the Okhla sabzi mandi. Sometimes, we give it to people who in turn sell it in nearby localities such as Kalkaji, CR Park, Alaknanda, Govindpuri and Greater Kailash,” he said.
One lab to test over 100 toxins
For years, 42-year-old farmer Lokesh Singh has grown vegetables like gourds, potatoes and cauliflowers in his fields along the Yamuna riverbed in Shahdara. He has heard of the harmful effects of pesticides but says seasonal pest infestations leave him no choice. “I contact my dealers and they recommend a medicine for the crops. Who knows what is in the medicine? Should I worry about the crop or side-effects?” he asked, stocking a pile of cauliflowers, leftovers from his morning sale at the Ghazipur wholesale mandi, to be sold on the ITO bridge.
Delhi has just one government laboratory for testing pesticide residues. With a capacity of 100 samples per month, it is capable of testing for only 28 pesticides. A six-member health ministry committee, constituted on the directions of the Delhi High Court, submitted a report in May 2013 to frame a policy for monitoring of pesticide residues in fruit and vegetables. The report said the capital’s only pesticide testing lab was “meagre for the state in view of the quantum of fruits and vegetables”. The same report identified 205 selling points for pesticides in Delhi, including 10 under the department of agriculture, eight under cooperatives and 187 private traders.
The committee recommended establishment of three to five government labs near Delhi’s nine wholesale vegetable markets, and testing more samples in private labs. The findings of the committee also recommended random checks, raising frequency of tests, starting smaller labs in the vicinity of mandis so that testing can be immediate, testing of seasonal and non-seasonal fruits and vegetables at least on a quarterly basis, among others.
But nearly two years after the report, little progress has been made. In March 2013, the Delhi High Court directed the Delhi government to institute a committee to monitor pesticides and in April, the Delhi government formed the Pesticide Residue Management Cell (PRMC) under the control of the Food Commissioner, but maintained that only 28 types of pesticides could be tested in government labs. The cell held its first meeting only on May 2 and since then, officials said, little work has been done. “We are framing guidelines for better regulation and including the private sector in the testing process. We will also be preparing a publicity campaign around subzi mandis and retail vegetable markets in the city to educate farmers and vegetable dealers,” a senior official from the department of environment told Newsline.
So how do banned pesticides continue to be available to farmers? The May 2013 health ministry report stated that the “building up of pesticide residues above MRLs (maximum residue limits) should not normally arise. But findings by several research workers/institutions belie this position, indicating there is something wrong somewhere”. Indiscriminate use, non-observance of prescribed waiting periods, use of mis-branded or spurious pesticides, continued use of restricted or banned pesticides and wrong disposal practices were identified as some possible reasons for contamination.
Sapna Chourasiya, research scholar from the JNU School of Environmental Sciences, explained that a survey of pesticides and fertilisers in shops in the areas from which vegetable samples were collected for the recent study showed that none of the specific banned pesticides were being sold. “We, however, found several pesticide mixtures in powder form where the components were not identified in the packets. These are marketed as one-size-fits-all mixtures which will work on different categories of vegetables. When we tested them and identified separate compounds, the banned pesticides were identified,” Chourasia said.
A senior official of the state environment department said the problem that the continued use of banned pesticides represented is only the tip. “Increasingly we find that pesticides that are banned or restricted in most countries in the world end up in India. With increasing competition for larger produce amongst farmers, it’s not surprising that they turn to a readily available alternative, which might be slightly expensive, but is guaranteed to ensure increase produce. The need of the hour is for the government to look for greener alternatives. But the government is stuck in a pro-pesticide bias and is not looking at the long-term health impact of such practices,” the official said.

Written by Pritha Chatterjee , Aniruddha Ghosal

- See more at: http://indianexpress.com/article/cities/delhi/pesticide-on-your-plate/99/#sthash.MZIYd8qf.dpuf

Wednesday, January 7, 2015

Smart cards soon for unorganised sector workers

Every worker in the unorganised sector may soon be issued a smart card with a unique identification number for accessing social schemes and benefits. The portable benefits card will be issued under the Unorganised Workers Social Security Act, 2008.
On December 25, the Gujarat Chief Minister launched such a card, “U-WIN,” in the State, and announced that benefits under various social security schemes would be routed to registered workers through this card. The Prime Minister joined the function through videoconferencing from Varanasi.
“The Gujarat launch was a pilot for launching the card in all States. It is likely to be launched before the end of the financial year,” said a senior official in the Ministry of Labour and Employment.
Officials said workers’ details may be seeded with the card at a later point.
“The proposal is all workers must get three things — health insurance, pension and disability assistance. This card will allow workers to self-certify that they are unorganised sector workers, and get these benefits through a portable card,” said another official.
By the National Commission for Enterprises in the Unorganised Sector Report, 2005, over 394 million workers, 87 per cent of the country’s working population, are in the unorganised sector. The report said 79 per cent of these workers lived on less than Rs. 20 a dayIn Gujarat, the government announced that benefits under 20 schemes, including education aid, maternity benefits, funeral benefits, accident group insurance scheme and housing, would be routed through the cards.
The Unorganised Workers Social Security Act, 2008, passed after the setting up of the NCEUS in 2004 under Arjun Sengupta, provides for constitution of the National Social Security Advisory Board at the Central level, which is to recommend social security schemes, health and maternity benefits and pension schemes for unorganised workers. It said that every adult worker could self-certify that he or she worked in the unorganised sector and shall be issued a smart card and a unique identification number.
“A universal, portable smart card which will provide social security benefits to all unorganised sector workers will be a good step. But at the same time, employment security of formal employment is being watered down,” Ravi Srivastava, an NCEUS member, said.


“The registration with a portable smart card and its integration with the registration under the Building & Construction Workers Act is a positive first step but will have little meaning unless the Acts/schemes also allow for portability,” he said.

Source: http://www.thehindu.com/todays-paper/tp-national/smart-cards-soon-for-unorganised-sector-workers/article6754976.ece

Over the Barrel: Oilpolitik / Vikram S Mehta

A frequently asked but futile question is: Where are oil prices headed? The question is futile because no one knows the answer.
This does not mean that people do not analyse and speculate. It is just that they get it wrong more often than not. The more useful questions would be: What are the implications of the recent downturn in oil prices? What, if any, are the opportunities that this decline offers?
The price of crude oil was $115 per barrel (bbl) in June last year. Today it has fallen to below $60 per bbl.This decline was unanticipated. Prices have fallen comparably sharply in the past, but there has been an explanatory external trigger each time. Between 1997 and 1999, prices fell from $25 per bbl to $10 per bbl.
The trigger was the Thai government’s decision on June 30, 1997, to stop defending its currency. This snowballed into the full-blown Asian financial crisis. Between July and December 2008, prices went from $145 per bbl to $35 per bbl. Here, the triggers were two-fold. First, prices had run up to an unsustainable level and second, investment bank Lehman Brothers went belly up in September and banks stopped lending. This time, however, there has been no external trigger. Prices have slid because supplies have outrun demand.
The International Energy Agency (IEA) had projected that oil demand would rise by 1.4 million barrels a day in 2014 over 2013. But demand increased by only half that amount — 7,00,000 barrels a day. On the supply side, the US tight oil producers (shale) exceeded production expectations by 1 million barrels per day (mbd), and Iraq and Libya by 200 and 300 thousand barrels per day, respectively. In addition, Opec passed the baton of “swing producer” of oil to the US. Instead of cutting production to defend prices, it decided to defend market share. To close observers of the petroleum market, this shift in policy should not have come as a surprise.
For, in September 2013, Saudi Arabia’s minister of petroleum had said that US shale oil production should become the “world’s new swing producer of oil”. Later and all through 2014, both he and the Opec secretary general repeatedly made clear that Opec would not play its traditional role; that with its lower cost reserve base it had the staying power to withstand any price pressure; and that US shale producers should hold back production if they did not wish to be driven into an economic hole.
They knew that US producers could not “cartelise” and buck competitive forces, so these statements were deliberate signals to alert the market of their altered attitudinal stance. So when, at the Opec summit meeting in November, they rolled over the output quotas of individual members unchanged, the price of crude slithered sharply.
Opec is gambling that it will not be long before US production stagnates and that, with faster growth in the US, China and India, the current price trend will reverse. This is a gamble, because there is an eight-month lag before drilling activity responds to price signals. Also, the price point at which the marginal costs of shale production exceed marginal revenues is not clear.
The IEA has estimated that 4 per cent of US shale production will be uneconomic at prices below $80 per bbl. Wood Mackenzie has written that 60 per cent of production from new wells are commercial at $60 per bbl. Cambridge Energy Research Associates has calculated the average break-even cost to be in the mid-2050s. This variance is understandable. It reflects the different cost profiles of the companies. Those that came into the game early and leased land at knockdown prices and have established the required drilling infrastructure can probably make money at prices below even $50 per bbl. Others must already be struggling.
The important point is that while the shale business model is clearly under stress, oil producers are also hurting. The Russian currency is in near freefall; Venezuela is finding it difficult to service its debt; Iran needs $135 per bbl for fiscal break-even. Saudi Arabia, the UAE and Kuwait have seen their revenues decline by approximately $240 billion. The Brazilian pre-salt fields are fast becoming uneconomic. The Opec position is a gamble because if prices stay at this level for long, or slide even further, most of these countries will face an economic, if not political, convulsion.
The implications for India are, of course, on balance hugely positive. It has saved approximately $40 billion in reduced import costs; inflationary pressures have eased; the subsidy outgo has reduced and growth has got a boost. But there is a flipside. Indian companies have substantive investment, trading and financial interests in Venezuela, Russia, Nigeria and the Gulf. Were Venezuela to renege on its debt, Russia to sink deeper into recession, Nigeria to impose capital controls, Iran to suffer a political upheaval and the Gulf countries to cut back on public expenditure, the returns on these investments would be at risk, remittances from Indian workers would slow down, and our strategic and trading relationships may have to be reviewed.
At the sectoral level, it will be increasingly difficult to attract risk capital into oil and gas exploration. This is because most oil companies have pared down their exploration budgets. The government is reportedly planning to announce a new licensing round for bidding. If so, and if it is keen to attract international companies, it will have to abandon all thoughts of replacing the current cost-recovery production-sharing model (where companies have first call on production to recover costs) with a revenue-sharing model (where revenues are shared with the government even before costs have been recovered).
The oil price decline raises two questions. First, does it offer acquisition opportunities? After all, many international companies with attractive assets are hugely leveraged and face a cash crunch. They may well need to sell at significant discounts. Indian companies with deep pockets and/ or sovereign backing should perhaps investigate.
Second, at what point and under what circumstances will prices start to climb again? That they will is a lesson from history. In anticipation, the government should develop scenarios that describe alternative futures under different, albeit higher, price points and be ready with its policy response.
The writer is executive director, Brookings India and senior fellow, Brookings Institution
Source : http://indianexpress.com/article/opinion/columns/over-the-barrel-oilpolitik/99/

Municipal Bonds

Municipal Bonds, also known as Munis, are tax saving investments offered by the municipal bodies to raise funds from the community for local area development. In view of the plan towards Smart Cities, the Government of India has proposed to use Munis in a few select cities in view of the following benefits it yields:
1. They help in saving tax for the individual, hence increased participation
2. Since the money invested is being used in the development of the local area, the direct impact can be felt by the investors and hence greater accountability
3. It balances authority and responsibility at the community level, thus making the process of development more effective and inclusive 
4. Viable alternative source of funding, given the central funds are already under pressure with “Make in India”
Municipal Bonds are being planned to be issued in the following manner:
1. Select five to six Tier II and Tier III cities, including smaller capitals and satellite owns, to issue munis in
2. Issue a fixed number of bonds to the people of the given municipality (75% of the population), for a fixed period (3 years) and at a fixed rate of interest (8%). The people would be decided on first come first serve basis.
3. The issuing authority must fund a minimum of 20% of the Project Cost from the munis, and incase is unable to reach minimum subscripion, must refund to the applicants within 12 days
4. Depending on the success of Munis in the first phase, the option will be extend to other towns as well. Some of the constraints that Munis might face in the first phase are:
a. Better alternative available for people with higher rate on interest
b. Absentia of Municipal Bodies causing lack of trust in them by people
c. Techno-managerial capacity of the municipal bodies
If Municipal Bonds are able to perform as expected, they will display an extraordinary route of development
investment in India at the community level. The democracy would truly be functioning BY the people and FOR the people.

Municipal bonds

Days after the Securities and Exchange Board of India (Sebi) proposed new rules for issuance of municipal bonds, thehas asked its urban development counterpart to identify five or six cities, and specific infrastructure projects in those cities, for which those civic bodies could issue such bonds.

Municipal are instruments issued by municipal bodies, or by states on these bodies’ behalf, to raise capital for infrastructure projects. After Finance Minister in the Union Budget for 2014-15 announced the intention to develop 100 smart cities, the government deliberated on various ways to finance the infrastructure for such cities and decided reviving the dormant municipal bonds could be one of the ways.

“The urban development ministry has been asked to identify five to six cities and specific projects within these cities for which the municipal bonds will be issued. This will only be the start. There will be more cities identified for infrastructure funding, to develop those into smart cities,” a senior government official told Business Standard.

According to the plan, these will be Tier-II and -III cities and include smaller state capitals and satellite towns around larger metros. The official added the urban development ministry was expected to come up with specific names within a week.

On December 30, had released a concept paper on the issue and trading of such bonds on exchanges and invited comments from the public. The concept paper said the civic body issuing these bonds would have to obtain ratings from credit rating agencies and would have a minimum tenure of three years.

The market for municipal bonds has existed in India since 1998, when Ahmedabad became the country’s first city to issue such bonds. But 25 municipal bond issues in the past 16 years have garnered only about $300 million, according a report by Mukul Asher, professor at the National University of Singapore, and Shahana Sheikh of New Delhi’s Centre for Policy Research. The amount raised so far is only a fraction of those raised by developed markets like the US, where the municipal bond market is worth more than $3 trillion.

Analysts and policy watchers say the market for such bonds has not picked up in India for a number of reasons. These include the lack of interest among investors, the sorry state of finances at many municipal bodies, shoddy accounting of their books, bureaucratic hurdles, lack of interest at the central and state levels, and the issue of who will guarantee these bonds. Besides, there also is local political interference in these civic bodies.

Source: http://www.business-standard.com/article/economy-policy/finmin-asks-urban-dev-min-to-identify-cities-for-muni-bond-issuances-115010200401_1.html

Lexicon of democratic literacy / Aruna Roy

When the literacy drive was in full force, I happened to visit a village in Ajmer district with a friend who was a civil servant. There was bold graffiti on a prominent school wall, which said:Saksharta ki kya pehchan? Upar chaddi, niche baniyan (How do you recognise literacy? The shorts above and the vest below). My puzzled officer-friend asked the villagers what prompted the graffiti. They replied, “You don’t run schools for our children; teachers are absent because they don’t want to stay in the village. Your transport system does not function. Our eager children remain illiterate. But later when we are tired and worn out, you come to teach us literacy. Please run our schools.”
Successive Rajasthan governments did not listen to these voices, perhaps because the children of the ruling elite study in expensive private schools. But the present government topped them all when it decided to shut down 17,000 schools, almost all in remote villages. As people protested and demanded that they be reopened, they were told that those who never got an opportunity to go to school will now be debarred from standing for elections.
Debarred from contesting
This fiat through ordinance that requires passing class 8 and 10 as eligibility criteria for standing for elections came just days before the elections for sarpanch and panchayat samiti members. It has shocked and angered most of rural Rajasthan, including supporters of the ruling party. This decision will disqualify 95 per cent of rural women and 80 per cent of the electorate from standing for election. This arbitrary step has raised many questions. Perhaps the answer to all of them is that this is a deliberate move to ensure elite capture of grass-roots democracy. In one stroke, this decision lays the blame and burden of education on the people and ensures the continuance of power in the hands of a few. Governments need to take all voices into consideration. The punishment for failure of delivery cannot be inflicted once again on the victim. Women, Dalits and tribals, who are at the bottom of the pile, will be the most affected.
I have been trained for 40 years of my life, particularly in democracy, ethics, and governance, by illiterate but highly educated people in rural India. We have traded skills. Naurti, now Sarpanch of Harmara (Ajmer district), is “illiterate,” but learnt to use the computer at the age of 50 and teaches middle and high school dropouts how to use the computer. She has no class 8 certificate, but uses the website of the Ministry of Rural Development. Who is more skilled between us is debatable. I would not advocate that Naurti head the Ministry of Human Resource Development or that she teach me Shakespeare, but in matters of governance in the panchayat she is heaps better. My informal learning about the invention of scientific thought, of Galileo and Kalidasa, have provided a worldview worth the learning. But I am not equipped like Naurti to understand the nitty-gritty of getting a panchayat quorum to take a difficult and just decision when faced with a contentious issue. I do not know if I could face the ire and possibility of violence for standing against sati, without caste or money on my side, as she did. She will not be trapped into a situation by unethical, unjust people; nor will she be trapped by the writing on a paper that she cannot understand.
Illiteracy is not merely from lack of schooling. It can come from ignorance of highly specialised modes of governance which even an M.A. degree cannot address. But governance in rural Rajasthan needs ethics and guts — values not determined by class 8 certificates — which, incidentally, can often be obtained illegally, especially by the ruling elite in the area.
An essential tool
Of course literacy is an essential tool, which is why the state has a responsibility to ensure that people have the right to education. But literacy cannot be made more important than intelligence and ethics, which are native to the human species. A quick review of unintelligent and violent acts that have travelled out of Rajasthan, or the renewal of traditional methods of feudal control, have actually been led by literate individuals. Promoters of sati were highly literate men who led a massive demonstration by drawing on caste loyalties and values of the feudal elite. Rape, corruption, cheating and injustice have not occurred because of illiteracy. Honour killings, the revival of witch hunting, the development of modern methods of corruption, together with primitive public punishments such as stripping and parading women have not come from illiteracy; they have come from the misuse of traditional and official power to retain elite control — a deadly combination. Protests against such acts have come from ordinary people who are brave enough to take cudgels. Many of them are illiterate, but they are courageous and ethical. It is frightening because this is not a result of tradition or lack of exposure alone, but of impunity from accountability. Literacy has not changed the balance of power. It is unquestioned power that flouts ‘good governance.’
I remember Beelan, 65, scoffing at me 35 years ago saying I had nakal (copying by writing) whereas she had  akal (mind). I could not remember figures and money spent, but many of my illiterate friends remembered details to the last paisa. A weaver of Ikat in Odisha is a mathematician — not only in simple arithmetic but in the intricate art of dividing numbers to form patterns. There are different kinds of literacy required at different times. Passing class 8, in this case, is more for show than substance. The bureaucratic system needs to be reformed to ensure accountability so that there is a proper balance of power between the technocratic executive and the elected representative.
We need schools for democratic literacy, which will encourage accountability in leaders and bolster courage to face oppression and inequality. Citizens need opportunities to spend time understanding governance; of being able to identify loopholes and how they can be plugged. The requirement of a class 8 certificate will further deny access to power for those who are likely to demand universal equality of access. Or may be that is the intention.
The cherry on the cake is that the State government as well as the Centre proudly tout formal learning as an unnecessary criterion for choosing Ministers. In reality, 90 per cent of their work is through the written word, unlike that of the sarpanch who deals with the human condition. This can only prompt us to say with irony, “Democracy is dead but long live literacy.”

(Aruna Roy is a social and political activist, Mazdoor Kisan Shakti Sangathan . E-mail:arunaroy@gmail.com )

Source: http://www.thehindu.com/todays-paper/tp-opinion/lexicon-of-democratic-literacy/article6754957.ece

Tuesday, January 6, 2015

आदमी

अँधेरे के भेद ये हैं
कि आदमी अँधेरे में औरतें निगल जाता है;
आदमी पुरुष होता है.
अगली सुबह फिर आदमी भीड़ में दुबक जाता है,
जब तक ऑफिस से आ
हुक्म नहीं चलाता बीवी पर
आदमी चूहा है.
फिर रात, फिर पुरुषत्व,
फिर दिन, फिर चुहत्व!

हद आदमी, हद आदमी,
बेहद ही करतब आदमी.
भाड़ का चना आदमी
उछला-उछला फिरा आदमी.
सड़क पे नंगा मरा आदमी,
सौ-सौ टके बचा आदमी.

आदमी की दुम है
कुत्तों से ज्यादा हिलती है
जिसको हिले, उसको दिखे
जिसकी हिले, उसको दिखे
जितनी हिले दुम, उतने सभ्य तुम!
जितनी हिले दुम, उतने भव्य तुम!

रिश्तों का दगा आदमी,
दुम का सगा आदमी.

करतब के बन्दर ने ताड़ी पी
अब आदमी सा हिलता है
अब साहब होता है, जब
किसी छोटे बन्दर से मिलता है,
या ऐंठ में पहलवान की
पीछे दुम हिलाये चलता है.

औरत की पीठ के नीले निशान आदमी,
बच्चे की सिसकन में कमाल आदमी!
चुहत्व, पुरुषत्व का विकास आदमी
ताश सा बिखरा, हताश आदमी.

Return to which home? / Gopal Guru

ON October 14, 1956, Babasaheb Ambedkar, along with several hundred thousand “untouchables”, embraced Buddhism. The moral and ethical strength of Ambedkar’s embrace of Buddhism lies in its cultural and intellectual capacity to sustain among the ex-untouchables a growing association with it. Conversion as a cultural-intellectual movement that took off in October 1956 from Nagpur continues to gain strength. It would be fair to observe that Ambedkar’s Buddhism has got a pan-Indian following among certain castes formerly deemed untouchable, such as the Jatava/Chamar from Uttar Pradesh and Punjab, the Malas from Andhra Pradesh, the Parayars from Tamil Nadu, the Adi Karnataka from Karnataka, and a tiny section of Pulayas from Kerala and of course the Mahars and a few Matangs from Maharashtra.
However, scholars of Buddhism have perceived different meanings in Ambedkar’s conversion. Some of them locate the primacy of nationalism in the act, while others see it as a decision emerging from Ambedkar’s frustration with Hinduism. Still others see the conversion as a personal choice that Ambedkar imposed on millions of untouchables. Arguably, such multiple readings of Ambedkar’s conversion, by default, treat Hinduism as the least important factor in Ambedkar’s act of conversion to Buddhism. By Ambedkar’s own admission, it is Brahmanical Hinduism that provided the major context for the emergence of Buddhist assertion starting from Iyothi Thass and Laxmi Narsu from Tamil Nadu, culminating in Ambedkar’s 1956 conversion. Ambedkar held Brahminical Hinduism largely responsible for producing what could be called the withering down impact, particularly on untouchables.

His decision to embrace Buddhism, however, involves two mutually exclusive principles of responsibility, negative and positive. Taking a cue from Aristotle, one could argue that Ambedkar’s conversion was driven by the moral force of positive responsibility, which the protagonists of Hinduism refuse to accept. Ambedkar expected Hindu leaders to take the lead in terms of first critically reflecting on the regressive character of Hinduism and subsequently acknowledging it through a honest conversation with untouchables. He expected the defenders of Hinduism to accept the untouchable’s critique of Hinduism. He also expected them to make honest efforts to take the liberal principle seriously and do it by producing an Indian Voltaire who could then introduce radical alteration into the very structure of Hinduism which is the caste system.

But as the social history of anti-caste struggles show, Brahmanism defeated the Buddha and also failed to produce a Voltaire. The lack of liberalism among orthodox Hindu leaders was evident in their refusal to listen to Ambedkar on the question of annihilation of caste at Lahore and in their fierce resistance to Dalits’ right to draw water at the Chawadra tank in Mahad and to Dalits’ right to enter temples in Nashik and Pune. Upper-caste Hindus not only not supported such rights but also violently opposed Ambedkar leading the struggle for Dalits’ human rights. In view of this collapse of his efforts to reason with Hindus, Ambedkar had to fix negative responsibility on them.
The principle of negative responsibility holds an individual or a social group or an entire society responsible for the act which is likely to go against the interests of the holders of a particular faith. In this view, Hinduism is held responsible for giving rise to Ambedkar’s neo-Buddhism. Before declaring that he would not die as a Hindu, at Yeola town in Nashik district, Ambedkar invoked the principle of natural justice and invited Hindus to defend their case against the accusations that he was making.
His main charge against Hinduism was that its philosophy killed good common sense based on the principles of equality, justice, freedom and compassion. Convinced by the need for natural justice, Ambedkar gave orthodox Hindus a long rope so that they could first modify and then rectify their religious doctrines by seriously questioning their religion. In conclusion, one may say that Ambedkar’s conversion did not sprout from thetabula rasa, or a clean slate. The rigid nature of Hinduism provided the formative context for Ambedkar to justify his decision.
Positive responsibility

The principle of positive responsibility is internal to the moral and ethical act of offering justification. Justification becomes morally defensible and hence universally valid to the extent that it is based on the stronger claim for a superior cultural alternative that would work out in the interest of the collective good. Neo-Buddhism, through its arya astngangik marg (eight fold ethical path), promises to offer ethical care for both the “touchables” and untouchables in India.

Ambedkar saw in Buddhism the best alternative to establish perpetual peace, at least in India. The expression of this normative need was evident in his declarative statement (in Marathi): “Sara Bharat Buddhamay Karin” ( I will expect every Indian to become Buddhist). Ambedkar, thus, argued that neo-Buddhism was a superior alternative to other religions on the following grounds. First, his conversion was aimed at creating independent moral standards by which every human being and not just the untouchables would evaluate their social worth. This moral evaluation would be independent of Brahmins who were traditionally placed at the top of a scale of ritual hierarchy so that they could be imitated by the rest of society. Ambedkar argued that Hinduism sought to convert the real into the ideal, which then is available for imitation by those social layers which have developed the sense of cultural aspiration to catch up with the socially superior. Everybody would like to associate with higher castes through the process of Sanskritisation. It is pathological in the sense that a “lower”-caste person can never become a Brahmin and enjoy the social power that emanates from the ritual status of being a Brahmin.
Second, Ambedkar’s decision to convert did not spring from a tabula rasa. Nor was it a hypothetical proposition or a transcendental judgment that was the guiding force of the decision. Neo-Buddhism as envisioned by Ambedkar had a very strong subaltern character. The early followers of Buddhism were the poor masses. Buddhism could flourish with subaltern commitment rather than state patronage. Third, Ambedkar’s conversion was not the result of any empty fascination for an abstract philosophical persuasion, and nor was it the result of any frustration. On the contrary, it has to be understood primarily in terms of its cultural and political force. The theory of “Karma”, which continues to work as a strong basis of Brahmanical Hinduism, was responsible for casting untouchables into a role defined by fate. The concept of “fate” seeks to naturalise the degrading and humiliating social conditions that virtually produce social death for untouchables.
The logic of fate seeks to paralyse a person’s faith in his own agency. Ambedkar’s act of conversion was meant to enable untouchables to step out from the mental prison of “fate” and walk into a more dynamic sphere of freedom. An untouchable saint from 13th century Maharashtra adopted the mindset reflected in these words: “Thewile anante taisechi rahawe” (the human being is destined to live life as ordained by god). Ambedkar’s effort to wean untouchables away from this mindset was evident in one of the meetings that was held by the saints in Mumbai during the anti-caste struggle in the 1930s.

In this meeting Dalit saints endorsed Ambedka’s decision to leave Hinduism. In this regard, it is also important to keep in mind that some of followers of the saint and the warkari tradition from 19th century Maharashtra showed an undeclared inclination for Buddhism. This is why Krishnaji Arjun Keluskar, a warkari, gifted a copy of the biography of Buddha to Ambedkar, who was a student of Keluskar in his high school days.
Fourth, Ambedkar’s conversion shifted focus from everyday forms of maintaining the ritual purity of the body, which continues to be the core of orthodox Hinduism even today, to the creative life of the mind that is internal to neo-Buddhism. Its principle of “atta dippo bahva” promised fulfilment of at least two basic subjective needs—self-definition and intellectual self-determination. As an act of intellectual self-determination, Ambedkar’s conversion sought to demystify the negatively imposed identity of being a part of Hinduism. Ambedkar’s justification also embodied a moral element of the care of the other—the high-caste Hindus caught in the historical cycle of of domination and subordination needed emancipation. Ambedkar could have argued that he did not have to justify his conversion. But he felt the acute need for a justification that would highlight the main teachings of the faith he was embracing—equality, dignity and friendship.
“Ghar wapsi”

In the context of Ambedkar’s conversion, in the course of which he appealed even to upper-caste Hindus to think of Buddhism as a possible alternative, how does one perceive the stated Hindutva objective of making India Hindu? How does one look at the call for “ghar wapsi”?
The “ghar wapsi” programme promises a return to a place that was never “home” in the first place. Untouchables were never considered an organic part of Hinduism, and, as Ambedkar said, they were outside the Hindu fold. The defenders of Hinduism must be asked whether they are talking about accommodating Dalit in a ghar (home) that exists only in abstraction or are they ready to integrate Dalits into the Brahmin ali (which in Marathi means a Brahmin residential neighbourhood) at the concrete level?
A few questions

What meaning does “ghar wapsi” hold for the Arya Samajists who were seeking Suddhi during the freedom struggle? Or for the different Hindutva outfits working towards the project of making India a Hindu nation? What is its relevance for those broken men and women who were so long kept outside the “ghar”? Secondly, “ghar wapsi” makes sense only in regard to the lower-caste convert. The upper-caste men and women who converted to Sikhism, Islam and Christianity arguably do not constitute an appropriate case for “ghar wapsi”. They enjoy the same power of social domination as the upper-caste Hindus do. This seamlessness eliminates the need for “ghar wapsi”.

Ambedkar would expect the contemporary defenders of Hinduism to offer justification as to why Dalits should return to the Hindu fold. Where will the champions of “ghar wapsi” put the untouchables-in the Brahmin ali or agrahara (in Tamil) or tola (in north India)? How can they accommodate the untouchables in the agrahara without a radical reconfiguration of Hinduism on egalitarian lines? Can they achieve this without destroying the painful system of social hierarchy that forms the basis of Hinduism? They do not have any plan to seek this radical inversion of Hinduism. It is for this reason that Ambedkar considered Buddhism the superior option for untouchables.



Gopal Guru is a professor at the Centre for Political Studies, Jawaharlal Nehru University. He has authored two books with Oxford University Press, Humiliation: Claims and Context and The Cracked Mirror: An Indian Debate on Experience and Theory.

Source: http://www.frontline.in/the-nation/return-to-which-home/article6715553.ece?homepage=true

governor has been sidelined in the administering of tribal areas

The institution of the governor has been sidelined in the administering of tribal areas despite clear constitutional guidelines to the contrary. In the light of some of recent related events, critically comment on the statement. 

The Constitution of India, through Article 244, has mandated the Governor of a State with wide-ranging powers for the administration of tribal areas under the Fifth and Sixth Schedule. The governors of the 9 states which contain Scheduled Areas, are required to make an annual report to the President regarding the administration of the Scheduled Areas of his respective state, on whose basis the Union can direct the state to execute developmental measures for such areas.
However, the feasibility of this arrangement has been questioned by the people, mainly due to the fact that the office of a governor is not an elected one and hence, he is not responsible for the well-being of the people in the Scheduled Areas. That they are widely considered as agents of the political party which occupies the Centre, further erodes their accountability.
Few recent events, such as the inaction of AP’s governor against bauxite mining in tribal areas, and that of Orissa’s governor against the setting up of a steel-unit by POSCO in Orissa and of bauxite mining in Niyamgiri, and the petition against the ceding of administrative power by the governor to the CM of Chhattisgarh in Munshi vs State of Chhattisgarh are cases in point.
The need of the hour is to sensitize State governors towards the requirements of the scheduled tribes and ensure that their appointments and later decisions are not based on political considerations. Involving the TACs of the Scheduled areas in the governor’ appointment can be an option. Also, the governor should be appointed to head the TACs instead of the State CM to ensure greater accountability from them.