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Punjab demands special package from the 15th Finance Commission

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In the recently held meeting with the 15th Finance Commission, Punjab government has asked for a Special Debt Relief Package to revive state’s fiscal health.

With a debt of Rs. 2.10 lakh crore, which the new Congress government had inherited from the erstwhile SAD-BJP regime,the party in power now is seeking  from the 15th Finance Commission a Special Debt Relief Package to support its government’s efforts to revive fiscal health, along with a one-time package to enable payment of the entire debt of the distressed farmers of Punjab.

On the issue of agricultural debt relief, while Congress government had already announced a package of Rs. 8000 crores for over 10 lakh small & marginal farming households, there was need for a comprehensive package and assistance from the Centre, said Chief Minister, Captain Amarinder Singh, urging for a one-time debt waiver to help out the farming community. Further, to give relief to the farmers, promote agriculture diversification and realize Government of India’s vision of doubling of the farm income, he requested the Commission to provide for deficiency price support in maize and cane production to the extent of Rs. 12,350 crore and Rs. 300 crore, in order to give a boost to the allied activities in the farm sector.

At a meeting of the 15th Finance Commission, the Chief Minister noted with concern the permanent loss of revenue suffered by the state post GST implementation, whose compensation from the Centre will also end from July 1, 2022, resulting in a drastic fall in revenue in the range of Rs. 10,000-12,000 crore per annum. In view of the loss, the Chief Minister urged the Commission to recommend a graded compensation tapering formula to the Government of India for states like Punjab beyond June 30, 2022, so that they do not simply ‘fall off the cliff’.

Highlighting the special problems of the state, with its highest SC population in percentage terms, its long and thickly populated border with Pakistan, its riverine and sub-mountainous areas and flight of industries due to concessions to neighbouring states, Captain Amarinder Singh shared his government’s wish list with the Commission, underlining the need for a special package for Punjab, citing the various roadblocks to its development despite his government’s numerous programmes and persistent efforts.

Even as he listed out Punjab’s strengths as a land of the brave and the food bowl of the nation, the Chief Minister said the internal security threat arising out of a hostile neighbour and threat of spillover of J&K militancy, along with the problem of drugs further made the state a fit case for a special package.

Referring to the Rs. 31,000 crore Food Account which the Akali government had taken over in its last days, the Chief Minister said the Government of India should take over the debt or Punjab should be given matching revenue deficit grant to offset the committed annual interest payment liability of Rs. 3240 crores.

Expressing grave concern about the critical water situation in the state, Captain Amarinder Singh sought a Rs. 12000 crore grant for complete water cycle management in both rural and urban areas. On its part, his government was making considerable efforts to resolve the problem and had recently signed an MoU with Israel’s National Water Agency Mekorot, he pointed out. A pilot project of Direct Benefit Transfer of Electricity (DBTE) for agriculture consumers under the banner of “Paani Bachao Paise Kamao” scheme had been initiated with the intent of saving ground water and motivating farmers to cultivate diversified crops. The Government of Punjab had also initiated a programme to provide piped potable drinking water to every household in rural areas by December, 2019, he informed the Commission.

In line with the commitment of the State for sustainable development, he also asked the Commission to provide a financial assistance of Rs. 500 crore for river cleaning programme, and Rs. 3,682 crore for ground water improvement by river augmentation through afforestation. He further urged the Commission to provide support of Rs. 5,500 crore and Rs. 6,719 crore to its power infra and road infra, respectively, which the State had created majorly from its own resources, much ahead of the others, and was now neither getting the capital grant nor the maintenance expenditure for same under the various Central Government schemes. He also sought Rs. 100 crore for strengthening the cancer infrastructure and Rs. 505 crore for providing sewerage facilities in the villages on periphery of our towns.

The Chief Minister told the Commission that despite the financial crunch, his government was making the best of efforts to boost development and improve the quality of living on all fronts. Punjab was the second best performing large state in terms of Health as per the Health Index 2018, and had achieved 100% rural electrification way back in 1976 and every town and village stands electrified, with one of the lowest Transmission & Distribution Losses (T&D) in the country, he noted. What is more, the state is ranked 2nd in the country in terms of road connectivity and our rail density is better than the national average. It ranked 2nd in Logistics Ease Across Different States (LEADS) Index, on account of our excellent performance on various parameters, namely, infrastructure, service, timeliness, safety & tracking and competitive pricing.

The State led the country in abolishing the practices of affidavit in citizen services as also shunning the VIP culture by abolishing the red beacon culture, much ahead of others, the Chief Minister noted. His government had, in the last two years, signed 305 MOUs with an investment potential of Rs 42,905 crore and an employment potential of about 1 Lakh in the last 20 months, he further disclosed. To ensure transparency and accountability, his government had also enacted the Punjab Transparency and Accountability in Delivery of Public Services (including electronic service delivery) Act in 2018 with an objective to provide citizen/ centric services to its people in digital mode in next three years.

The Chief Minister said he was saddened by the fact that the necessary development expenditure in Punjab has starved for want of funds against the backdrop of lack of adequate support from the Centre and the already stressed financial position of the State. He requested the Commission to pay special attention to the financial position of the State so that it comes out of the clutches of the vicious debt trap and work with utmost sincerity and integrity towards realizing its vision of a prosperous Punjab and prosperous India.

The Finance Commission was represented by Chairman N.K. Singh, Chairman, along with members Dr. Anoop Singh, Dr. Ashok Lahiri and Dr. Ramesh Chand, as well as Arvind Mehta, Secretary to the Commission and other officers of the Commission.

Ladakh gets its first university

Prime Minister Narendra Modi on Sunday launched University of Ladakh, the first-ever varsity in the Ladakh region of Jammu and Kashmir. During the inaugural programme, PM said, “Young students constitute 40% of the population of Ladakh. There has been a long standing demand for a University in this region. With the launch of the University of Ladakh this demand would be fulfilled.”

This University will be a cluster University comprising of degree colleges of Leh, Kargil, Nubra, Zanskar, Drass and Khaltsi and will have administrative offices at Leh and Kargil for the ease of students. The Jammu region has four universities besides an IIT and an IIMC, while the Kashmir Valley has three universities and a National Institute of Technology (NIT). On December 15, the Jammu and Kashmir administration had approved the establishment of first university in the Ladakh region.

Justice NV Ramana: Justice dispensation system is the power house of people’s trust and confidence

Andhra Pradesh Chief Minister Chandrababu Naidu and Chief Justice of India Ranjan Gogoi inaugurated the interim High Court complex of AP yesterday. The two storied complex at Nelapadu houses 16 court halls. The interim court was set up as actual High Court is being built in proposed Justice City in Andhra Pradesh’s capital.

Delivering the keynote address on the occasion, Hon’ble Justice N. V. Ramana, Judge, Supreme Court of India called it a historic day in the annals of State of Andhra Pradesh to get its High Court building inaugurated by the Chief Justice of India. Tracing the rich history of Telugu State, he said that “Amaravati is not a new capital. It is an old one – two millennia ago, when the Andhra Satavahanas were reigning supreme, their capital was located in this region. It was known then as Dhaanya Katakam, according to historians.”  “The State Judiciary, now started functioning from this sanctified place, will reiterate the bench marks of modern judicial system namely, love, compassion and value of truth being the foundations of justice. In a way, it will be a case of history repeating for the Andhra people in their 2,000-year long journey. Amaravati resonates with rich historical associations and it is certainly a symbol of Telugu pride, aspirations and culture,” he added.

He said that Justice dispensation system is the power house of people’s trust and confidence.  “I hope, in near future, the High Court of Andhra Pradesh will attain an important place in the judicial atlas of India with the collective effort of both Bench and Bar. Today, no doubt, is an occasion of joy for everyone present here.  But, in my view, this is also an occasion of solemn dedication. Whether we belong to Andhra Pradesh or Telangana or to any other State of the Indian Republic, as members of the Bench and Bar, and as priests of the sanctuary of justice, shall prove yourself worthy and succeed in bringing the motherland nearer to the vision of our dreams.

Justice Ramana said that, he is confident that the High Court of Andhra Pradesh will continue to uphold the basic values of equality, liberty and justice enshrined in our Constitution and safeguard the freedom and fundamental rights of our people so that they realize their full potential as worthy citizens of this great nation.

A separate High Court for Andhra Pradesh came into existence on January 1, four and half years after the state bifurcation. President Ram Nath Kovind had on December 26 issued orders for setting up the separate court for AP. Until the announcement, AP and Telangana shared the High Court complex in Hyderabad. Construction of the actual High Court building at Justice City in the capital region is yet to start. Once that is completed, the HC will shift there and the interim complex to be inaugurated today will house the City Civil Courts. The building has 2.70 lakh square feet office space and has been constructed at a cost of Rs 150 crores.

Indira Gandhi: How relevant is she today?

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Priyanka Vadra has finally been formally anointed in the Congress Party albeit only as a General Secretary for Eastern Uttar Pradesh. Once she is in the race, opposition comments have started. Understandably the Congress cadres are going overboard and drawing parallels between Priyanka Vadra and Indira Gandhi. Mrs. Vadra will occupy the same room as her famous grandmother Mrs. Indira Gandhi, in the Congress office in Lucknow, in the hope of invoking the achievements of the past as a mirror of what to expect in the future.

Let us try and understand whether Mrs. Gandhi is relevant in today’s context, particularly with the younger Indians and the millennials or for that matter, even the older generation of Indians who would have lived through the years of her rule.

I remember the period when Indira Gandhi was the Prime Minister very clearly.

In 1971, when she engineered the formation of Bangladesh and created two nations out of Pakistan, I remember her with a lot of pride, primarily because my father was in the army and I had the opportunity to see thousands of Pakistani Prisoners of War in camps in Prayagraj, earlier Allahabad. We had lived through the 1971 war, switching off all lights at night and getting used to the sounds of the air raid sirens. The sight of thousands of Pakistani soldiers in their sand-coloured uniforms behind barbed wire fences was a source of pride for our soldiers and our country.  

When I was in Delhi University during the period 1974 to 1977, I saw the other side of her during the 21 months of emergency.

I clearly remember how scared we used to be sitting in the Delhi University Special buses, not uttering a sound, not talking to friends, just in case someone was listening to us and would report back to the authorities. The eerie silence in these buses still rings in my ears.

Stories of opposition leaders and young college students being picked up at night from their homes and put in jail would circulate all over, through whispered comments. Possible vasectomy of able-bodied young men was a frightening scenario that all of us used to worry about. The censored press was only extolling the incredible achievements of the Prime Minister and her son Sanjay Gandhi during the emergency. As a young student, the only visible positives were that there were no power blackouts and the buses ran on time!

As young students, we craved an India where we would be free to speak once again.

This is the Indira Gandhi that I remember.

I wonder how relevant she is today or how relevant are her dictatorial methodologies today. It is also worth exploring whether Indira Gandhi is remembered or even understood by the youth of today. Does anyone remember all her excesses? Are her achievements and excesses relevant in a nation that has moved on and stopped looking at the past?

Her famous election slogan of “Garibi Hatao” (remove poverty) only remained a slogan since no action was ever taken to implement its spirit and poverty has continued to this day. Rahul Gandhi has turned to the same slogan with his Minimum Income Guarantee without any idea of how this will be implemented or what it will cost (someone has estimated that this could cost upto 5% of GDP annually). He knows that it is very easy to make promises and later, either interpret it according to his convenience or deny that he actually said it.

The world has changed considerably in the last 50 years. From a bipolar world where we had to choose between the two ideologies of USA or USSR or remain nonaligned on paper and lean towards one of the two blocs. The USSR has imploded into several independent nations, and USA under Trump is focusing all its energies within its own borders. Nationalists are being voted to power and each leader is expected to carve out a space for his nation rather than ally with some bloc. People are tired and fed up of the promises made by politicians and they want a change.

India has changed dramatically since Indira Gandhi. There is much greater prosperity and significantly more job opportunities for the young. The Indian millennials now think of themselves as citizens of the world and not as citizens from a socialist country closely allied to the Soviet Union, who must keep seeking Government favours to move forward in life.

The Congress Party too has changed in the last 50 years. It is a weak shadow of what it used to be. It has destroyed all its advantages and learned to rely on coalition partners. The leadership is weak and indifferent and while the party cadres may, out of reverence, be required to pay allegiance to their leaders of the past it is doubtful whether they have any understanding or identification with such leaders. The Congress party, other than Jawaharlal Nehru and Indira Gandhi, have not really had any iconic leader they can look up to. Rajiv Gandhi got an enviable sympathy mandate after the assassination of his mother but was not able to utilise this very significant mandate.

The heir apparent, Rahul Gandhi wasted the first two parliamentary terms when his government was in power and virtually did nothing significant other than tear up some ordinances which resulted in a major embarrassment to his own government. In the current Lok Sabha, he did nothing till he was formally anointed the Congress President.

It is also worth examining what Rahul Gandhi has done for his parliamentary constituency Amethi or the parliamentary constituency of his mother Rae Bareli. There is very little for him to show in terms of what he has achieved for the people. It is very likely that the Congress will lose both the seats in the coming elections.

Once Rahul Gandhi was firmly in the saddle, with no specific agenda or game plan, he started to abuse the Prime Minister at every possible opportunity. Realising he was making no headway, he stoked up the Rafale controversy not backed by any proof, by his own admission. He has run out of ideas and probably believes that his sister, Mrs. Priyanka Vadra will be the game changer and will bail him out of the difficult situation he is in.

Priyanka Vadra with her brother and Congress President Rahul Gandhi during election campaign at Amethi in the last general elections in 2014. Rahul Gandhi, on January 23, 2019 appointed Priyanka Vadra as All India Congress Committee (AICC) General Secretary of Uttar Pradesh East. (Photo: PTI)

What can Priyanka Gandhi really do in the last few months before the elections? She is the last runner in a relay race where the first three runners have left her trailing and are now looking towards her to bring out an incredible burst of speed to beat the front runners who are near nearing the finishing line! The baton has been handed over to her.

Is it possible that she has been set up to take the fall after the elections so that the Crown Prince is not affected and can continue to muddle along for another 5 years with his tattered reputation covered up by his sister?

Can grand mother Indira Gandhi help Rahul Gandhi and Priyanka Vadra win these elections? Will her name and photographs fire up the voters to cast their precious vote in favour of the Congress Party? Will her name help Rahul Gandhi to establish a semblance of credibility as the leader of the Congress party?

Very unlikely.

Has the Congress fired its brahamastra which will leave a trail of destruction while destroying the opposition? Or is this a simple Diwali havai that has been fired to momentarily light up a dark sky?

Only time will tell.

Islamists have perverted mega-sporting events. It’s time to act

Paris 2024 should promote universality of women’s rights against Islamic sexist requirements in the Olympics.

Why should NGOs fighting for women’s rights pay a special attention to sport in general and more specifically to Olympics? For two reasons: First, because athletes practice their discipline in public space and wear clothes adapted to their movements. This played a major role in women’s emancipation. Secondly, because the universality of sport is based on global regulations applied to everyone at the national and continental level. Moreover, sport is characterized by a pyramidal structure with the IOC (International Olympic Committee) and the International Federations at the top. There are no limits to their power. Which is not the case of the United Nations.

Unhappily, successful exemptions of rules based on principles of non-discrimination, and of the ban of political and religious exhibition, were achieved by the intensive lobbying of Iran, supported by international sport networks.

In order to include women who are supposed to be willing to reconcile their beliefs and their sporting activities, constraints imposed by Islamist theocracies on women’s sport were accepted. These included covering the entire female body, no participation in mixed gender activities, access permitted only to those sports compatible with Islamic law.

Discriminatory and segregationist ways in stadiums have become an “inspiring” model for Muslim women, whatever their country of origin.

Dorsa Derakhshani, Iranian chess champion, was sanctioned for having played in competitions without a headscarf.

All the more so that clothing manufacturers and even manufacturers of toys quickly caught on to the immensely profitable emerging market that was thereby opening up for them[1]. See Nike’s launching of the clothing line “Nike pro Hijab”, and Mattel, the American manufacturer of a “Hijab Barbie”, in the effigy of the woman fencer, Ibtihaj Muhammad, the first American athlete to be veiled and a bronze medal winner in 2016 at the Rio Olympics.

Paradoxical result of the will shown by international bodies to practice an inclusive policy in the field of sport was to relegate women and girls among the vulnerable groups. For example, the International Charter of physical education, physical activity and sport, revised in 2015, proclaims that: “Inclusive, adapted and safe opportunities to participate in physical education, physical activity and sport must be available to all human beings, notably children of pre-school age, women and girls, the aged, persons with disabilities and indigenous people”.

It’s high time that the Paris 2024 Organizing Committee reacts and applies all the universal principles in the Charter. These principles are: Non-discrimination, including that of sex (Principle N° 6)[2], neutrality such as stated in Rule 50 (“No kind of demonstration or political, religious or racial propaganda is permitted in any Olympic sites, venues or other areas”), the Olympic oath (“Granted the honour of becoming a member of the International Olympic Committee, (…) I undertake to keep myself free from any racial or religious consideration (…)”)

Yet, two countries — Iran and Saudi Arabia, still contravene both the letter and spirit of the Olympic Charter as they subject the participation of women in international competitions to considerations above mentioned that are in total contradiction to the terms of the Olympic Charter. Such archaic measures are among other humiliating ways sexual apartheid is imposed on their peoples by those political regimes[3].

How could the IOC accept such serious violations of the basic principles of the Charter when it excluded South Africa when racial apartheid was its rule?

The promotion of the concept of universality of human rights is an essential issue as it is too often criticized for the wrong reasons. The organization of the 2024 Paris Olympic and Paralympic Games offer a unique opportunity to demonstrate the necessity of a strict implementation of these principles as stated in the Olympic Charter.

It’s not too soon to draw the attention of the organizers to this issue as they are just launching programmes promoting the Olympic Values towards the so-called “2024 Generation”.  

We demand that the President of the 2024 Paris Games draw the IOC President’s attention to the incompatibility of sexual apartheid with the Olympic Charter. Furthermore, has not the IOC inscribed in its 2020 agenda the promotion of “gender equality” and “mixed gender teams events”[4] as a priority, as did the Paris Olympic Committee?

  • If you  accept to support the  APPEAL to the 2024 Organizing Committee, please send your answer here: appliquerlacharteolympique@gmail.com and tell us how you want your name to appear in the list of signatures. The objective is to obtain 2024 signatures.  

[1] The Research Institute Thomson-Reuters estimates that the « modest style » market will be worth 484 billion dollars throughout the world (quoted in Le Monde supplement of 30 April, 2016, « Style Sets Sail »).

[2] In conformity with international texts  (cf. particularly, the International Convention for the elimination of discriminations against women ( CEDAW)

[3] These theocraties institutionalized sexual apartheid in the 1960s (Saudi Arabia during the oil boom and  its Islamic renewal) and in 1979 (Iran during its Islamic Revolution).

[4] 2020 Olympic Agenda : Recommendation N°11.

#InterimBudget: Modi govt bats on front foot

Budgetary allocation for cow and middle class core voters; farmers and lower castes pandered; welfare schemes widened for all

It’s a budget for kisan, majdoor, cow, lower middle class – the core BJP voters. Bonanza is showered on them. Even foreign investors have been pandered to. They have been told that India is poised to be $5 trillion economy in five years and beyond that $10 trillion in eight years.

Will it change the 2019 poll dynamics? That is the hope of BJP and possible concern of the opposition, Congress included. BJP’s strategy is sharp and aimed at pan-India reach. The opposition has to redo theirs. It certainly makes the economy and politics interesting. Yes, Piyush Goyal and Arun Jaitley’s budget has thrown new challenges, raised new aspirations.

More so as Goyal in his post budget interaction tells the press that in the main budget, after the elections, the groups now left behind – the income taxpayers — may expect reliefs.

But that’s where the catch is. The I-T (income tax) sops are limited to those earning up to Rs 5 lakh. This is the consequence of the 10% reservation given to economically weaker sections having family income of up to Rs 8 lakh. It’s a wonder why the relief is not extended to the limit of Rs 8 lakh.

Beyond that the taxpayers have a gain of Rs 10,000 a year – Rs 850 a month – as standard deduction is raised to Rs 50,000 from the existing Rs 40,000. But they would pay tax at a minimum rate of 20%. They have other gain on interest accruals up to Rs 40,000 on bank deposits, as it will not be computed as earning and would also be free from TDS (tax deducted at source). Yet this would be added to their income in the tax returns. This is likely to increase tax disputes as the department acts often in a queer manner. Recently it has sent many pensioners unusual demands and has adjusted their refunds against such “demands”. Ideally the entire interest accrual should not be under tax net. Despite various pension provisions, a large section remains and would for long be without a pension. The savings only help them. Goyal’s budget has not taken care of this issue.

Possibly, it’s rightly so. As per government estimates those earning up to Rs 5 lakh constitute about three crore of taxpayers. They create an atmosphere of major gain and would now be out of tax net. Total taxpayer is 6.89 crore now against 3.69 crore a few years back. Once again the number would come down to the level of 3.89 cr.

The number of the higher I-T payer is far less though oppressed by a steep high tax rate but politically less important.

More important are the 12 crore farmers. Those owning up to 2 hectare of land would get Rs 6000 a year – Rs 500 a month– in the new Rs 75,000 crore PM- KISAN scheme retrospectively from December 2018 – a first in any budget.

It is the Telangana model and has paid rich dividends to Telangana chief minister K Chandrashekhar Rao’s Telangana Rashtra Samithi in the recently held assembly elections. The BJP has high hopes that it would change the rural voting scenario.

The southern states are also on the radar. About 1.45 crore fishermen are to have focused attention. They would have a new fisheries department and would have the facility of Kisan Credit Card (KCC) at low interest rate of 2%.

The KCC would also be extended to animal husbandry farmers. They would also benefit from the setting up of Rashtriya Kamdhenu Aayog for genetic upgradation of cow resources and enhance production and productivity of cows, a favourite theme of the Sangh Parivar. The message goes deeper. The allocation is only Rs 750 crore for the Gokul mission but the emotional appeal is deemed to be greater to the rural population.

The farm sector slowdown has caused rural problems. As farm production increases, prices have fallen creating a distressful situation. The new schemes are expected to change it. Many states, including Madhya Pradesh, Chhattisgarh and Rajasthan, where the Congress has recently formed governments upstaging the BJP, have announced loan write offs for farmers to tide over an income crisis.

The overall agriculture and farmers’ welfare budget has increased to Rs 1.29 lakh crore from Rs 67,800 crore, though agriculture research budget has seen marginal rise of Rs 1125.9 crore to Rs 8078.6 crore from Rs 7952.79 crore. This required a larger allocation.

Add to this another 42 crore labourers earning up to Rs 15,000 a month. They would get a pension of Rs 3,000 per month after 60 years of age in the proposed PM Shram-Yogi Maandhan. There is a catch. They have to enter at the age of 29 and pay Rs 100 a month to be eligible for the pension.

So it would not immediately benefit those who are in the age group of 40 to 59. It is, however, expected to create aspirations.

What has evaded attention is the doubling of gratuity limit to Rs 20 lakh. It is to cater to majority of the industrial workers in the organized sector. It is a much needed step and various trade unions have been seeking it. The impending elections have given them the desired benefit.

There has been Rs 14,000 crore hike, 35.6% increase in the allocation for welfare for the SCs and STs to Rs 76,801. It is to nullify their fears raised after introduction of the economically backward reservation. There were campaigns by some political parties that it was the step to end the SC/ST reservation. Of late, sizeable sections of these groups had come closer to the ruling party and it is an effort to retain their loyalty.

The increased tax base has been used to spread out to benefit a large base. Total expenditure rises from Rs 24.57 lakh crore in 2018-19 to Rs 27.84 lakh crore in 2019-20, a rise of Rs 3.26 lakh crore – 13.3%. The revenue base remains strong at Rs 25.52 lakh crore.

But fiscal deficit is likely to go beyond the projected 3.4%. The final budget to be presented after the elections would change many of the figures. Whatever presented now is subject to developing political situations. The next few months would see much acrimony.

The budget does not merely spell out figures. It weaves a dream for the future through ten-dimensional vision. Goyal says, “We will create an India where poverty, malnutrition, littering would be matter of the past”. One hopes Goyal emerges right but to make it happen a lot has to be done.

Book Review: Religion and Development in the Global South

With an estimated 84% of the world’s population being religiously affiliated, Rumy Hasan’s analysis of the nexus between religion and development was long overdue.  Hasan takes as his starting point Max Weber’s foundational argument for why capitalism originated among Protestants in Western Europe, a link propounded in his famous 1904 work, The Protestant Ethic and the Spirit of Capitalism.  Hasan asks whether Weber’s thesis might provide helpful insights for the present that could explain why development has been stagnant in large tracts of the post-colonial world and whether the culture and religion of the global south militates against an ethic akin to that of the Protestant work ethic.  The Weberian thesis is that religions and cultures that stress “other-worldliness” and spiritualism (Catholicism, Hinduism and Buddhism) act as a brake on economic development. Hasan makes the case that a similar reasoning can be applied to Muslim-majority countries that congregate at the lower end of the global socio-economic ladder (as evidenced in the Human Development Index, for example).

Consistent with Arthur Schopenhauer and historian Owen Chadwick, Hasan notes that Protestantism’s unintentional effect was to sow the kernel of secularisation in the nineteenth century that permeated the working classes and coincided with a more widespread resistance to religious authoritarianism. This, as well as Europe’s industrialisation, the expansion of print media and a set of philosophical ideas infused with universal principles coincided to advance education, human welfare and economic growth.

Hasan does not overlook the downsides of the rise of capitalism in Europe. The darkest hour of European modernity spawned colonialism and slavery and the unprecedented savagery of the Second World War. In a 1930 essay, Keynes made clear his own moral reservations against unbridled capitalism. He argued that, when the accumulation of wealth comes unhinged from its purpose as a means to the enjoyments of the realities of life, and instead becomes loved as a possession in itself, it becomes a semi-pathological propensity.

Nevertheless Hasan underscores Weber’s prescience in discerning that certain cultural values like trust, respect for others, individual effort, merit and a government that protects and facilitates these social traits correlated with higher per capita output and accelerated growth rates. The current that runs beneath Hasan’s trenchant study of this nexus in present-day Islam, Hinduism, Christianity, and Confucianism is that culture matters because it shapes human progress.  Ample evidence suggests an iron law: that as societies develop, education levels and living standards rise, and concomitantly, the influence of religion declines. Hasan’s book is nothing less than incontrovertible proof of the profound link between religion and work ethic at both the individual and societal level. 

First, at the individual level, Hasan notes that in most countries and notably in the developing world, religion is imposed on children to the extent that pressure to conform results in the individual’s primary identity being that of religion.  This limits the likelihood of conversions taking place.  The Jesuit motto, “Give me a child until the age of seven and I will give you the man” reflects the extent to which systematic indoctrination moulds individuals in conformity with the beliefs of parents, community and the wider society.  There is abundant evidence that poverty outcomes are greatly affected by social norms and customs that lead to – inter alia – the exclusion of women, and that religion is the main determining factor of said social norms and customs.  Despite this, there has been conspicuous silence in  government-funded national and international scholarly studies of development as to whether religion might be a limiting factor for development and economic growth. Hasan’s book therefore represents a historic breakthrough, in so far as it provides the first large-scale effort to redress this glaring omission.

There are many possible explanations as to why this deficiency exists.  One is that the prioritisation of diversity and differences (a manifestation of cultural relativism) sidesteps the question of whether some beliefs and cultures are more or less conducive to development. Moreover, the UN’s Sustainable Development Goals (SDGs) adopted in 2015 glossed over the issue with question-begging in Goal 9, where they state without evidence that “all cultures and civilizations can contribute to sustainable development.” This tautology is far less important than whether they actually do. Moreover, Hasan points out that their Goal 5 (which ostensibly supports the aim of achieving gender equality and empowering women and girls) leaves a glaring contradiction between these objectives and the cultural relativism implicit in Goal 9. Since much of the harm done to women and girls stems directly from certain cultures and especially religion, Goal 5’s objectives are obliterated by Goal 9’s.    

In the absence of a secular state, religion takes on a totalitarian form so that critical engagement with the central tenets, doctrines and customs is precluded.  Without secular institutions and laws, religion and its cultural accoutrements permeate every vestige of society and profoundly impact the determinants of development and growth.  This is particularly damaging with respect to women, since none of the major religions has a commitment to genuine gender equality. Hasan quotes John Stuart Mill’s famous essay of 1869 titled ‘The Subjection of Women’: “the principle which regulates the existing social relations between the sexes  – the legal subordination of one sex to the other – is wrong in itself, and now one of the chief hindrances to human improvement . . .”.  Indeed, in most of the Global South, the  legal and extra-legal subordination of women remains the norm, a situation in which religion is centrally implicated. Hasan has usefully completed the analysis by amassing detailed evidence that gender inequality hinders growth and development.   

Moreover, new research on corruption suggests that policies promoting gender equality can help clean up governments and businesses too (Engendering Development through Gender Equality in Rights, Resources, and Voice, World Bank 2001 report, pp. 73-74). Governments are less corrupt when women are more active in politics and the labour force. Likewise, household studies provide evidence that fertility reduction is one consequence of improvements in female education and consequent changes in women’s autonomy. Better educated women tend to have fewer children than less educated women  — a consequence of later marriages, better knowledge of birth control and the ability to make decisions about their own fertility and family planning. At the same time, there is little evidence that factors other than religion (or its attenuation) produce these key differences in women’s autonomy. Yet the World Bank’s major reports systematically fail to acknowledge any correlation between patterns of women’s autonomy and the degrees of religious belief in a culture.  It looks like a whitewash.

Varieties of Christianity, Islam and Hinduism are adhered to by some two-thirds of the Global South.  While their influence on development varies, Hasan’s overarching conclusion is that for Islam and Hinduism, it is almost entirely negative; for Christianity, it is a mixed picture though tending towards the negative with the proviso that aspects of Protestantism may have a positive influence. Confucianism, by contrast, given its human-centred and non-dogmatic doctrines, can realise a constructive impact.  In the Global South religion is the primary mark of identity and it profoundly shapes morals, values and folkways. From the evidence presented, two facts are unmistakeable. First, as countries develop the importance of religion the population-at-large declines. Secondly, in all the socio-economic indicators, developed countries occupy the highest rank.  Research also suggests, contrary to widely-held perceptions,  that high levels of religiosity also have a negative impact on morality.  In one survey (conducted across six countries) it was found that children from religious backgrounds were less altruistic and more punitive (Decety et.al. 2015).  Another survey by Gregory Paul found that, in general, higher rates of religious belief and worship correlate with higher rates of homicide, juvenile and early adult mortality, sexually transmitted disease infection rates, teen pregnancy, and abortion in the prosperous democracies. 

Study after study has shown that secularising culture and society is not only essential for the cognitive development of children but is also necessary for economic development and modernisation. This book provides compelling evidence to think that the environment in societies where religion plays an important role is a crucial determinant of the capacities, capabilities and skill formation of a population and that very high levels of religious beliefs in the Global South have suppressed the dynamic of growth, development and human flourishing.     

Rumy Hasan’s book “Religion and Development in the Global South” is available on Amazon online stores.

No Income Tax upto Rs 5 lakh

India’s incumbent BJP government woos middle class by raising income tax exemption limit upto Rs 5 lakh ($7,030) from the present Rs 2.5 lakh ($3,515).

#IndiaBudget2019-20

India’s Finance Minister Piyush Goyal doled out sops for salaried middle class in this year’s interim budget, by offering a full tax rebate on incomes upto Rs 5 lakh ($ 7,030). The current tax exemption limit is Rs 2.5 lakh ($3,515). The increased exemption limit is expected to benefit around 3 crore (30 million) income tax payers, mainly the middle class who form the core support base of the ruling Bharatiya Janata Party. The raise in income tax exemption limit was on expected lines, especially since 2019 being the year of General Elections and India’s middle class has been feeling alienated with the BJP for its economic policies.

Piyush Goyal, who was given additional charge of the finance ministry, had stepped in for Arun Jaitley who had not been in good health for a long time. Jaitley was unable to keep the Indian economy on track and discontent was growing that Narendra Modi government has not been able to keep Indian economy on its high growth path. Goyal stepped in after Jaitley’s illness had worsened making him unavailable to discharge his duties and present this year’s budget. Jaitley had undergone kidney transplant in May last year. While Jaitley is a lawyer, Goyal is a chartered accountant and could gauge the factors ailing Indian economy. Goyal understands that economic sentiment and economic growth are close cousins. Probably, the sops to farmers and raising income tax exemption limits are small tools to improve the economic sentiment in India.

UN predicts global financial turmoil

Political changes apart, rural Indians may see more discrimination

The global economy is stagnating and income inequality is increasing concerns over growth as India enters vibrant political phase and pines for economic direction.

The phase is important and critical. The world economy stagnation in 2019 and 2020 as per UN’s prediction in its World Economic Situation and Prospects (WESP) 2019 has ramifications for India. Its efforts for economic recovery would be affected impacting its future budgetary provisions.

Will India’s political wisdom be able to address that? Would a Congress trying to fight on ‘front foot’ with Priyanka Gandhi being formally launched as AICC general secretary, and Rahul Gandhi as a sober campaigner be able to make difference? The crucial question – whether the Congress has a vision beyond Manmohanomics.

The Manmohanomics in 1991 did one good thing. It ushered partly in practice, more in theory, an era of liberalisation. The 1991 path has been followed willy-nilly by all successive governments, irrespective of the political colour.

All finance ministers after Manmohan Singh, followed his path. That was good – as there was a predictability of the course. But with years the supposed liberalisation that was talked in 1991, got lost somewhere. It has lead to a firmer grip by the bureaucracy or the government itself of the course and lives of the people and their businesses.

This has led to a certain level of GDP growth but the social distribution of wealth has been convoluted leading to severe concentration of wealth, as per OXFAM in 1% people and the growth of wealth of the multitude in most cases either has been minimal or reduced. The worst has happened to the daily wage labourers. Their earnings came down.

The WESP has noted the trend happening in different regions. Though it predicts a 3% annual growth till 2020 globally, but sees deceleration to 2% in the EU and the US, “as the impulse from fiscal stimulus in 2018 wanes. The Brexit or not has shaken the European economy”.

China is slowing down to 6.6%. Several parts of Africa, Western Asia, Latin America and the Caribbean are likely to see incomes stagnating.

Without mentioning India, WESP says, “Even where per capita growth is strong, economic activity is often driven by core industrial and urban regions, leaving peripheral and rural areas behind”. This is happening in Indian farms and rural areas. The political fall-outs marked the recent assembly elections.

The global slowdown has impact on Indian exports and can cause domestic discontent.

Peculiar to Indian scenario, the WESP says, there “is a confluence of risks with the potential to severely disrupt economic activity and inflict significant damage on longer-term development prospects. The risks include waning support for multilateral approaches; the escalation of trade disputes; financial instabilities linked to elevated levels of debts; and rising climate risks, as the world experiences an increasing number of extreme weather events”.

The prediction is pessimistic. India is suffering many of these. The growth is not being reflected in people’s happiness. That is the greatest challenge to the political contenders for the 2019 elections.

So far, no political party has shown that they have a grasp of the situation. Instead all of them are in a wilderness failing to understand the crisis.

The Indian voters need an answer. The opposition is vocal that the BJP does not understand it. True or not, do any of them understand? The recent assembly polls brought to the fore not only the crisis but also that if a Telangana government had brought a half-baked solution for increasing farmers’ income by paying them Rs 4000 (now Rs 5000) per acre of their hold, all others are considering this as an instant vote-catching mechanism.

The announcement of Priyanka Gandhi leading eastern UP, once a Congress citadel has warmed up politics. One would have liked to see if there was a firm economic pattern also. No regional or national party has shown that vision, concept or wisdom.

The parties are suffering from myopia. They have lost sight of the fundamental problems. Competitive rhetoric is raising doubts. People are in a quandary. They do not find a solution to joblessness, underemployment and falling incomes and a continuous rising inflation. The governments have lost will and control to correct the situation.

So the UN chief economist and assistant secretary-general Elliott Harris says, “Alongside various short-term risks, there is an increasing urgency to deal with much more fundamental problems”.

He does not find sustainable development goals being achieved or poverty elevated till 2030. So does not political parties in this country. They are busy in caste politics, religious divide and raking up parochial issues. All lead to ignoring the 2030 SDG goals. India does not seem to have yet found the path.

A country that was once led by its own economic wisdom of Chanakya, that followed Gandhian principles, Marx, Engels, socialism or Keynes, and now the market economy or Deen Dayal Updhyay’s integral humanism, today finds all of these have failed and now they do not have a model to follow.

The governments are only tightening financial conditions through the banks and other instruments of taxation or interest rates. The UN says it can lead to financial turmoil.

The WESP says “as global financial conditions tighten, an unexpectedly rapid rise in interest rates or a significant strengthening of the US dollar could exacerbate emerging market fragilities, leading to heightened risk of debt distress. This risk can be further aggravated by global trade tensions, monetary policy adjustment in developed economies, commodity price shocks, or domestic political or economic disruptions.”

That exactly is happening here. Large external financing needs and limited policy buffers are particularly vulnerable to financial stress.

Often it is said that the country should spend more on research. It is doing. Its research investment in theoretical non-productive research has grown phenomenally. Universities are producing more doctorates. But fundamental thinking is eluding.

This leads to uneven economic growth. The fears of incomes stagnating further would be real. It says double digit growth is required. That is also not a solution. Growth and amelioration of conditions are not synonymous.

So the government may continue or change for the present, ground realities may be disturbing and solutions half baked. Income inequality, as feared by the UN, is likely to aggravate. For a solution there has to be dialogues and political leadership has to be sagacious. A tall order!

Government forces loosing hold in parts of Afghanistan

Afghan forces continue to suffer staggering losses since they assumed responsibility for their country’s security four years ago. President Ashraf Ghani last week said 45,000 security forces have been killed since he took office in September 2014. Moreover, Kabul government is steadily losing its grip over parts of Afghanistan, even as American forces intensify their air campaign against insurgent groups.

The latest grim assessment of Afghanistan’s security situation comes as the US pursues talks with the Taliban and urgently seeks a way out of the 17-year war. Numbers provided by Resolute Support, the US-led NATO mission in Afghanistan, show that as of October 31, only 63.5 per cent of Afghans are living in areas controlled or influenced by the Kabul government — down from 65.2 per cent the previous quarter.  According to the US Special Inspector General for Afghanistan Reconstruction (SIGAR), which compiled the data, the decrease came as Kabul’s control or influence over Afghan districts dropped. SIGAR said just 53.8 per cent of Afghanistan’s 407 districts are in government hands, and experts on Afghanistan say the number is lower still.

The strength of Afghan security forces has continued to dwindle, and currently stands at 308,693 personnel. That means only 87.7 per cent of positions are filled, the lowest level since January 2015.