Thursday, January 8, 2015

NGOs

Do you think the activities of non-governmental organisations (NGOs) in India should be regulated by an independent regulatory body? Critically discuss the various issues related to accountability of NGOs and government’s role in ensuring the same. (200 Words)

NGOs are playing a major role in the welfare and development of the society throughout India. These are working independently without profit after getting registered with government.
Current measures of regulation:
1. Renewal of registration under society registration act every 5 years.
2. Annual submission of income and expenditure.
3. Foreign contribution regulation act under ministry of home affairs for regulation of foreign fund.
4. State NGO acts.
Concerns:
1. Only about 10% of the over 22 lakh NGOs filed their annual income.
2. IB report about interference of foreign agencies in India through NGOs.
3. Some states lack NGO acts.
4. Large number –over 22 lakh.
5. Rise of fake NGOs.
6. Misappropriation of funds.
Considering the above factors a central and state regulatory body for NGOs is a necessity.
NGOs must ensure their accountability to government’s by submitting Annual reports, income and expenditure statements and working towards national development on national interest. Some recent issues like foreign funding of Maoist groups, separatist forces, green peace foundation, kudankulam protests, anna hazare movement raised questions about NGO’s objectives.
What government can do?
1. Strengthening the implementation of regulatory measures-annual reports, budget.
2. Establishing regulatory bodies.
3. Punishment measures-cancelling grants, revoking accreditations etc.
4. Surveillance through various agencies.
NGOs are an inevitable part of a country. It’s the responsibility of the government to regulate and shaping them as a tool of development .

promulgation of ordinances

“The procedure of the promulgation of ordinances is inherently undemocratic. Whether an ordinance is justifiable or not, the issue of a large number of ordinances has, psychologically, a bad effect.” Critically comment with suitable examples.

Article 123 of the Constitution has empowered the President to promulgate directives if the Parliament is not in session and they carry the full force of the law. However, most other democratic countries have not placed such powers upon the executive. Provisions for passing ordinances are widely considered as remnants of our colonial legacy and the GoI Act, 1935.
Ordinances were envisaged to be promulgated when a situation of emergency would arise and the deliberations on the issue by the Parliament would not be possible. On many occasions such ordinances have played a positive role. The government’s attempt to demonetize large rupee denominations in 1978 to prevent illicit money transfers, the creation of the TRAI in 1997 to raise private investors’ confidence in the ongoing process of liberalization and the recent ordinance to amend the Land Acquisition Act to kick-start stalled projects are cases in point.
However, ordinances have generally been based on political consideration rather than on principles of good governance. The promulgation of the SARFAESI Ordinance in 2002, when the bill was being deliberated by the concerned Standing Committee, the promulgation of the Electricity Regulatory Commissions Ordinance in 1998, one day before the government had agreed to convene, and the previous government’s ordinance to shield convicted legislators are all instances when the Executive's unilateralism sent a wrong message about the country's democratic bearings.
The Executive has been given wide-ranging powers such as the power to declare an emergency, setting up of important administrative authorities (e.g. PFRDA, UIDAI) etc. without Parliamentary Approval. Restraining the ordinance-making power to prevent further concentration of power by the Executive is the need of the hour.

---Another Answer---


Ordinances are temporary laws which can be issued by the President under article 123 of
the constitution when Parliament is not in session based on the advice of the
Union Cabinet. But promulgation of ordinance are supposed to be an abuse of
power and undemocratic, it can be explained by:
1).Court cannot inquire into the validity of the law as he is bound by the
constitutional obligation to question the decision of President as happened in
the Cooper case where supreme court opined that the decision of the president
can be questioned on mala fide intention. However this was overturned by the 38th
amendment which laid down the satisfaction of President is final.
2)Creates a difference between the executive and legislative powers as in between
1967-1981 the governor of Bihar promulgated 256 ordinances, while the assembly enacted only 189 laws.
3).Ordinances have the same effect as laws and their promulgation is not preceded
by debates and does not reflect the will of the nation
4). When the ordinance is presented once the parliament is in session the Lok Sabha will have no option except to authorise.
5)Debate on the bill allows both the houses to make necessary amendments to rectify unwelcomed features or defects.
The power to promulgate an ordinance is essentially a power to be used to meet an extraordinary situation and it cannot be allowed to be perverted to serve political ends .Further ordinances should be subject to close judicial scrutiny and review.

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.