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TheIndian EXPRESS
www.indianexpress.com

l MONDAY l SEPTEMBER 17 l 2012

The Indian EXPRESS

BECAUSE THE TRUTH INVOLVES US ALL

AVE the bold and belated policy announcements overtwodaysorthree,if you count the Planning Commission meeting on Saturday altered anyoftheconcernsandcalculations of Reserve Bank of India Governor D. Subbarao? More specifically, have they convinced him to cut rates?Ashereleasesthemid-quarter review of the monetary policy for 2012-13 this morning, markets, analystsandeveryIndianwithaninterest payment to make every month, will be watching him for his answer to the tricky question the government has lobbed at him. The frisson of expectation is entirely caused by the appearance of a government, so far seen to be struggling with a dismal cocktail of corruption charges, coalition compulsions and sheerlackofwill,attemptingtoturn the tables on its critics and opponents. It has raised oil prices, the first time in two years, picked up the gauntlet on allowing foreign investment in multi-brand retail, something it dithered on since 2005, permitted foreign airlines to pick up stake in domestic aviation companiesandeventweakedtherulesfora more accommodative single-brand retail foreign investment, all in slightly over 48 hours. Misgivings will persist, despite

The governments barrage of announcements complicates Governor Subbaraos choice

the breathless announcements. At the Planning Commission meeting on Saturday, the prime minister acknowledged that, even now, there is a clear and present danger of slipping to a 5 per cent annual rate of growth for the economy. For the first time in more than a decade, an Indian prime minister has accepted the possibility of the GDP growth rate slipping so low. There are reasons for his concern. The new oil bill will correct for even less than the Rs 20,300 crore the government has claimed it will shave off from the total subsidy bill for the year, with less than seven months of the fiscal left to make more changes. The current account deficit for this fiscal is expected to end at 3.6 per cent of the GDP, but thats assuming the net foreign investment flow into the economy picks up beyond the $9 billion it has recorded till September 14. The set of policy measures announced last week is unlikely to yield results this fiscal. The headline inflation at 7.55 per cent is high and is climbing again. Two weeks later, the diesel price rise will push it one per cent more. Yet if the RBI governorwantstovoteforoptimism on the economy, a 50 basis point cut in repo rates will do nicely.

RBIs turn

T was entirely a coincidence that the government announced major economic reforms even as the annual gathering of the heads of diplomatic missions was going on in the capital last week. If the government had cared to ask them, Indias hundred-odd ambassadors would have underlined how rapidly Delhis political credibility has been eroded in the last two years. The Manmohan Singh government did not need Time magazine or The Washington Post to inform it of the severe external costs of the prolonged policy paralysis in Delhi. Its the job of the envoys abroad to provide a clinical assessment of the host governments, their strengths and weaknesses.Theyarealsoamongthefirst to sense the shifting external perceptions of a nation. It needed genius to wreck the extraordinary international optimism about Indias prospects into one of profound pessimism and the UPA government seemed to have found a way. Three years ago, when Manmohan Singh returned to power with a bigger mandate, world leaders were tripping over each other in Delhis power corridors, seeking new partnerships with India. Many of them have checked out since. High external expectations from India were re-

Is it too late to tweak the India story, leverage the external environment for internal benefit?
placed by an older set of perceptions ofIndiaasadysfunctionalmassincapable of acting in its own interests. The enthusiasm for Indias soft power ebbed, paving the way for the return of the more traditional lament of India as a soft state. Unlike in the past, when India was an insular economy, its governments no longer have the luxury of being self-absorbed. With nearly 40 per cent of Indias gross domestic product now linked to the world in the form of imports and exports, Delhis internal performance and external engagement are dynamically interlinked. A failure on the domestic front has international costs, which in turn make it more difficult for India to extricate itself from an unfavourable condition. If theobjectiveofdiplomacyistofacilitate Indias rapid growth, its effectiveness depends upon the purposefulness of the government at home. In the last two years, Delhi has lost much on both counts. Although the economic reforms announced last week might have come late, Delhi could arguably recover some of its international reputation and leverage the external environment for internal benefit, if it can demonstrate the requisite political will, policy conviction and administrative resolve in the coming days.

Mirrors and images

HE UPA government announced a number of reform measures last week. The announcements indicate a willingness to take political risks to push the reform process. The measures are signals forinvestors,domesticaswellasforeign, that the Indian government is willing to undertake reform. In all likelihood,Indiawillnowavoidarating downgrade. Yet, the economy is still staring at a deceleration to 5 per centGDPgrowth,lackofjobgrowth and inflation. Now that the governmenthasshownitsmoodforreform, it must push further, to put India back on a healthy growth path. The two priorities of the government today must be fiscal correction and putting investment back on track. The time till the next general electionsin2014shouldnotbespent merely managing the political downsideofthereform,butinbuilding up an argument for it and promising high growth in the next term as well, if the UPA comes back to power. The UPA government must, first and foremost, outline its path of fiscal correction. Will the diesel price hike be followed up by more hikes, removal of subsidy and eventually a freeing up of diesel prices? The subsidy regime for food, fertiliser and fuel has thrown the Indian fisc into an unsustainable debt path. The present correction, owing to the oil price hike, will only mean a correction of about 0.2 per cent of GDP. The disinvestment announced could bring in another 0.2 per cent of GDP. This does not solve the fiscal problem. The deficit needs to come down by roughly 2.5 per cent of the GDP to be sustainable. At the same time, large welfare programmes, such as the NREGA, and the proposed health expenditure, will need greater spending. Anyone looking at the rising subsidy bill, at the size of the welfare programmes, and contrasting it with the limited tax base, can only wonder why India will not have a fiscal crisis. A continuation of the

In the mood for reform

Now the government must outline path of fiscal correction, put investment back on track
ILA PATNAIK
present policies cannot but land the country into a huge problem. Either before a crisis or after it, there is little doubt that the current expenditure path has to change. Will Congress rule push India into a fiscal crisis? If not, can the Congress articulate how that will not happen. Prime Minister Manmohan Singh is reported to have said that good economics is good politics. What is the prime ministers view of what is good economics on the Indian governments expenditure policy? While he has supported a concurrent evaluation of the NREGA programme, is the the growth process. This was why the country needed NREGA. It would help in reducing social tensions caused by high growth in some sectorsandslowgrowthinothersectors such as in rural hinterlands. Implicit was also the argument that NREGA will be paid for by the high tax collection that the fast growing sectors of the economy would yield. Growth was to be made inclusive through a redistribution of incomes. This was the scenario when India was growing at 10 per cent and leaving some people behind. It was a scenario that might stand the test of time if India continued to grow at a investment and low growth. What is the path of fiscal expenditure and taxes, debt, deficits, borrowing and interest payments in that scenario? The other immediate priority of the government is to put investment back on track. Finance Minister P. Chidambaram is reportedly leading an effort on clearing problems caused by three years of government inaction. While one element of the story is to speed up action on the part of ministries and departments, another part of what may be required are small but effective changes in policies. Data indicates that, one, the announcements of government projects have fallen sharply, and, two, a large number of private infrastructure projects are stuck due to lack of government clearances. The first is reportedly being pushed by the financeminister.Onthesecond,there needs to be more policy change. Recently, a representation from the infrastructure sector has emphasised the role of the government versus private sector in obtaining clearances. They have argued that future infrastructure projects should be bid with all sovereign clearances packaged in. They have correctly argued that securing sovereign clearances cannot be left to the private sector, and state agencies should play their role as the first partner in the public-private partnership. This would mean that the way bids are structured and awarded would be refashioned. Presently, the concerned ministry, or bid sponsor, sees its role mainly as the licensor or concession awarder. The argument makes perfect sense. This kind of streamlining can be done by the government with immediate effect and can help push investment back on track. Ila Patnaik, professor at the National Institute of Public Finance and Policy, Delhi, is consulting editor for The Indian Express ,
express@expressindia.com

LETTER OF THE WEEK AWARD

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Letters to the

EDITOR

While one element of the story is to speed up action on the part of ministries and departments, another part of what may be required are small but effective changes in policies. Data indicates that the announcements of government projects have fallen sharply, and a large number of private infrastructure projects are stuck due to lack of government clearances.
problem only with leakages, or can India sustain such a welfare programme even if there were no leakages? Even if every scheme works well on its own, will that put the fisc on a sustainable path? What are the projected expenses on the governments welfare schemes if the schemes work without leakages? By what per cent is the expenditure expected to reduce? When the slogan of inclusive growth, or NREGA, was proposed, it was popularised as a promise that the poor will not be left out of the growth process. In other words, it was implicitly assumed that India would be growing fast and a section of the rural poor would be left out of long-run steady state of 10 per cent growth. This plan did not appear to evaluate the fiscal path of such a programme when growth halved. Today India is no longer on the high of a business cycle. What is the sustainability of a large populationwide employment guarantee programme funded out of a small tax base? If production and job growth decline, will the government be able to fund such a programme? The planning commission meeting on September 15 reportedly discussed a low growth scenario of about 5 per cent during the 12th plan period. Whilethedetailsofthepolicylogjam have not been reported, it is likely that this relates to a situation of low

THIS refers to Bihari remarks: Raj Thackeray taken to court (IE, September 13). How does MNS chief Raj Thackeray decide whether someone is Marathi or not? Those who reside in Gujarat, Karnataka, Madhya Pradesh, Chhattisgarh, Andhra Pradesh and Goa near the border of Maharashtra speak Marathi but are not domiciles of Maharashtra. Prashant N. Donadkar Gadchiroli

Mind your language

INDIRA JAISING
HESexualHarassmentof WomenatWorkplace(Prevention,Prohibitionand Redressal)Bill,2012,waspassedby theLokSabhaearlierthisweek.In thedinovercoalallocations,this wasdonewithoutanydiscussion.It isashamethatwewomenweredeniedtheopportunitytohearwhat ourelectedleadershadtosayabout thebill.Thepurposeofanylawthat proposestoprovideagrievanceredressmechanismfortheharassed womanattheworkplaceistorecognisethefundamentalrightsof workingwomenunderArticles14, 19and21oftheConstitution,and topreventsuchharassment. Section 14 of the bill calls for action against the complainant in case the internal committee or the local committee, as the case may be, arrives at a conclusion that the allegation against the respondent is malicious or the aggrieved woman or any other person making the complaint has made the complaint knowing it to be false. This section is likely to have a chilling effect on women wanting to complain about sexual harassment, since she might fear that the complaint will not be proved. It must be remembered that popular thinking often collapses complaints that are not proved with complaints that are allegedly false. Yet the two are not the same. Often, the only witness is a colleague at the workplace. He or she will be reluctant, for obvious reasons, to depose against a col-

The sexual harassment law was passed, but lack of debate has left flaws
league. As a result, the internal complaints committee could find the complaint not proved for want of evidence. We need a clause to the effect that the sole testimony of the woman, if otherwise found credible, will suffice to prove the case. Otherwise, there is a chance that the complaint will not be established. From not proved to false and malicious will be a short journey, causing untold misery to a person who made the complaint seeking justice. Moreover, it is surely not the job of the internal complaints committee to decide or prove that a complaint is false or malicious? Such a provision does must clarify that once the inquiry by the internal complaints committee is complete, and the offence is proved, the disciplinary authority will not start another inquiry to decide on the issue of guilt. It may only decide on the issue of punishment. The procedure of an inquiry cannot be in accordance with the service rules. Such rules deal only with a situation in which the employer accuses an employee of misconduct. The bill covers the charge of misconduct against a coworker. Service rules also overlook the rights of the aggrieved woman, call for cross-examination of witnesses and deposition. They not articulate her injury in the immediate aftermath. The bill has other shortcomings. It does not take care of sexual harassment in the armed forces, where the chain of command is strong and power is deeply entrenched. Given that such offences are rampant in the armed forces, and that the crime is often committed by persons in authority, it needs to be addressed by law. It is a heartening sign that domestic workers have been covered by the law. However, no effective remedial measures have been laid down for them. Section 11 lays down that domestic workers who have undergone sexual harassment will have to make a complaint to the local committee. If sexual harassment is proved there, the local committee will direct them to the police. This roundabout method of redressing the complaint will only cause delay and is likely to doubly harass them. A procedure facilitating access to the police and mandatory recording of FIRs needs to be put in place. It should be mandatory for the employers of domestic workers to contribute to a fund for unorganised workers. This could be used for compensation for domestic workers. These and other issues ought to have been debated in Parliament before the bill was passed. The writer is additional solicitor general of India
express@expressindia.com

Complainant in the dock

THE government must be congratulated for taking such a bold step at a time when its credibility is at stake because of the scams and the deferred reforms (Diesel dearer by Rs 5/litre, 6-refill cap on LPG subsidy, IE, September 14). Also, by reducing the excise duty on petrol, it has brought down the gap between the prices of petrol and diesel, which is good for the economy. This will reduce the governments subsidy burden and also send a message to global investors that India is serious about reforms again. But the media and opposition parties are projecting this hike as a political blunder by the government. We should understand that when the economy is slow, those who can, must share the burden. We can only hope that the government revives its stalled reform agenda. Amit Bhandari New Delhi

The good, the bad

The law should have had provisions to protect the woman during inquiry, such as screening her from the perpetrator and doing away with cross-examination.
not exist in any other law. It seems to be based on a presumption that all women lie when they say that a sexual advance is unwelcome. The argument advanced for the provision is that it will present misuse of the law. Yet all laws can be misused judges exist to take care of that issue. One wonders why the problem of misuse must come up only when it is a question of womens right to live free of violence. After the internal complaints committee finds that sexual harassment has taken place, it is required to send the report to the disciplinary committee for action under the service rules. The bill are therefore inadequate to govern cases of sexual harassment. The law should have spelled out provisions to protect the woman during the inquiry. These should have included screening the woman from the perpetrator, disallowing obnoxious questions that could amount to character assassination, and doing away with cross-examination of the woman, except through questions administered by the committee if necessary. It is also not clear why the complaint must be lodged within three months of the offence being committed. A woman who has suffered sexual harassment or other forms of gendered violence can-

OME Minister Sushilkumar Shinde has had a run of bad luck lately, but it doesnt seem to have dampened his optimism. He left the power ministry under cover of a blackout, having presided over the worst grid failure in recent years, and he laughed all the way to the home ministry. His appointment coincided with a spate of low-intensity blasts in his home state, in the heart of Pune, in fact, where he was to preside over an award ceremony. He said that the government would take it seriously, and carried on regardless. Now he seems to have taken optimism a step further. Shinde was back in Pune on Saturday for another award ceremony, in memory of the peoples poet, Narayan Surve, who would have been physically upset if he had heard Shinde shrugging off the coal controversy, suggesting that though the hands of the Congress

But on coal, he may be wishful and a little out of touch in the age of the internet
were blackened, they could always be washed. The home minister expressed strong confidence in public amnesia, which, according to him, had washed away all memory of Bofors. Shinde could be a little out of touch. Indians dont readily forget or forgive. And in the internet age, it may be even more difficult for them to do so, for crimes real and imagined. The outrage of Bofors persists in living memory, which must fade over time. But contemporary events are permanently archived in the public domain in ageless digital repositories. They can be consulted at any time, without the paraphernalia of the library that impeded public access earlier. The internet has ended mass amnesia and despite Shindes enduring optimism, its possible that taints like those caused by the allegations on coal, can no longer be so easily brushed away.

Optimist Shinde

PUNJAB Chief Minister Parkash Singh Badal has requested Pakistans Minister for Kashmir Affairs and Northern Areas Manzoor Ahmed Wattoo (Badal stresses on cultural exchange with Pak, IE, September 14) to send a cultural delegation of Pakistani students here as a confidence building measure between the two countries. As well-meaning and welcome this step is, I suggest that the embargo on Pakistans entertainment programmes also be lifted. The winds of change seem to have rendered such restrictions irrelevant. Mohan Singh Amritsar

Free airwaves

WORDLY WISE
Gloria Steinem

Law and justice are not always the same.

HE Middle East is a big, fractious and unpredictable place. The United States was reminded of that fact last year, when a democracy movement came out of nowhere to shake the foundations of governments across the region. Some nasty new evidence emerged this week when violence erupted at three US diplomatic offices and left four Americans dead in Libya... Each of the three countries presents a different problem. The killing of Ambassador J. Christopher Stevens and others in Benghazi a terrible loss for the US was the work of a group opposed to the new, elected government, which is pro-American and secular in character, and which immediately vowed to work with the US to find the killers. The mob action in Cairo, by contrast, apparently benefited from police indifference, and President Mohammed Morsi, a member of the Muslim Brotherhood, was conspicuously late in denouncing it. In Yemen, on the other hand, the

Attacks on US embassies are no indictment of American support of the Arab Spring

government has worked closely with the administration in targeting alQaeda elements, and 24 Yemeni security personnel were injured battling violent demonstrators... ThechargethattheupheavalsstemfromabroaderpatternofAmerican weakness is equally unconvincing. In Libya and Yemen, the administration has previously employed military force against its enemies. The US military remains the dominant power in the region, and the administration has not been allergic to using it forsoundandachievablepurposes.Noristhisbloodyunrestan indictment of US support for the Arab Spring. University of MichiganscholarJuanColesaystheepisodesoccurredbecause the democracy movement has left the haters behind, reducing them to desperate and senseless acts of violence. From a leader in the Chicago Tribune

In the throes of transition

PRINTLINE

I STARTED to read DGCA makes cancer test must for cabin crew (IE, August 21) with great hope as someone who has devoted the last 27 years to promoting cancer awareness. As I read on, I realised that this issue will become another football to be kicked between the management and unions, with no attempt to understand the issue. It pains me that the media should also treat this as a matter of mere rights and present it as a turf war. The present system of an annual medical examination is merely a heart and lung function test. The DGCA is right to propose cancer screening for the cabin crew. We at the Indian Cancer Society advise our volunteers to keep in mind that statistics are people with tears wiped away. Cancer is a real and growing challenge. Instead of creating sensational and controversial headlines, space should be devoted to educating people about how regular, annual cancer screening can save lives. The aviation industry should welcome the DGCAs move, especially if it bears the expenses of the screening. Jyotsna Govil New Delhi

Welcome move