Sunday, 9 June 2013

life in general & financial markets: agriculture needs to be respected, not scorned, by government of india


I share below an insightful article (actually excerpts from a book being written) from the latest issue of a weekly news magazine:



http://www.outlookindia.com/article.aspx?285946








Sanjay Rawat
Out of the green? Our PM wants young people to move out of farming and seek jobs in the cities, which aren’t prepared for them

No Country For Countrymen
As the Manmohan Singh government makes evident its unfriendliness to villages, the nation hurtles towards disaster. It’s a danger no one wants to face.
Arun Sinha
Prime Minister Manmohan Singh has been trying for years to make us believe that agriculture is a vast marshland in which a huge population is stuck ankle- to neck-deep and it is his duty to rescue them. “Our salvation lies in moving people out of agriculture,” he says in one speech. “We need to move people out of agriculture by giving them gainful employment in non-agricultural sectors,” he says in another. He says it whenever he talks of agriculture. His alter ego, Montek Singh Ahl­uwalia, echoes it whenever he can. Whether agriculture is a marshland or a Garden of Eden—and how it came to be so—is another thing. First, Dr Singh, we need to ask where you will take the evacuees.
Your government departments and public enterprises are cutting down on staff. Private companies are buying technologies to replace labour. Traditional industries, such as the glassware industry of Firozabad and the shoemaking industry of Agra, where labourers’ hands and not machines produced goods, are devastated with the opening of international trade and inundation with foreign brands. Artisan industries are closing down because of growing consumer preference for the machine-finished quality of goods from big cities. Companies are not investing their surpluses in rural manufacturing, saying Manmohan Singh must first create infrastructure. Manmohan says his government has no money; only private capital can do it.
So, you see, the country is in a fix. Seventy per cent of Indians, who live in villages, are in a fix. And that makes more than 80 crore farmers, labourers, artisans...men, women and children. Where do you want to take them?
You say there is no food in the villages; food is in the towns. But how will you feed them? How will you house people from six lakh villages in 8,000 towns? How will you guarantee that they will not have to live in cramped, disease-breeding slums with open drains and no toilets? How will you ensure that they get tap water and electricity? Will they have public transport? If you can’t ensure all that, why are you moving them out of the villages in the first place? Why are you playing host in a royal Indian wedding when you have no food, accommodation, comfortable transport and no fans and lights to offer to the baraatis?
Photograph by Narendra Bisht
Messrs Manmohan Singh and  Montek Ahluwalia, you have already humiliated them enough. By saying that they are trapped in a marshland, you have made them feel there is disgrace in being a farmer. They have come to believe agriculture is an accursed occupation. They feel they have brought themselves greater disgrace by reproducing more. You are shrewd enough not to betray your Malthusian humour, but when you say the proportion of our population dependent on agriculture is very high and unsustainable, your attitude towards them barely remains secret. But is overpopulation really why they are in the bog? Are you not to blame?
The nation has benefited more from farmers than farmers have from the nation. The nation has used them as horses to gallop to the goal of food self-sufficiency, to come out of the crippling shame of the ship-to-mouth days. As long as the political leadership was assured of enough food in the stocks, they were not bothered how the farmers were producing more and more. The consequences are there for everyone to see in Punjab, Haryana and western Uttar Pradesh. This was a region consciously selected by the national leadership for cruising to self-sufficiency because it was well-endowed with fertile soil, irrigation and robust husbandry traditions. The natural minerals of the soil have been driven away by chemicals. So much water has been pumped by tubewells that the groundwater aquifers have shrunk. The same hybrid seeds that produced plenty are not yielding more any more. Farmers have been left in the lurch.
Now, the nation awaits a technological breakthrough to end the stagnation. It has been waiting for that breakthrough for over two decades. It is causing anxiety in the national leadership. The anxiety is not about farmers. The anxiety is about the nation. The fear is about the nation losing self-dependence for food, it’s about food inflation that will force town employers to raise wages. When Manmohan and Montek say, “Agriculture must grow at four per cent,” they are talking about the GDP. The attitude of the post-reform leadership is no different from that of the pre-reform leadership. Farmers are still, in their view, no more than draught animals. The best example of it is seen in cotton. The leadership introduced a technological breakthrough in genetically modified (GM) seeds to meet the objective of reducing import of cotton, which caused a drain on foreign exchange reserves. Within a few years, India became a cotton-exporting country. Then crop failure struck, as soon as the monsoon started failing, and thousands of farmers committed suicide. Bt cotton should not have been allowed to be grown in regions with low water availability, as it required a lot of water. But the leadership was not worried who was growing cotton where and how many were taking their lives—as long as its objective of achieving self-sufficiency in the commodity was met. The nation was happy, even if farmers were not.
Photograph by Apoorva Salkade
 

 

The government wants Indian agriculture to take the American road. But the conditions that shaped American agriculture are not the same as those in India. For us, the American road leads to ruin.
 

 
The political leadership has left the farmers to themselves. It says: if you can survive, stay on; if you can’t, too bad, swallow your pride—and your pesticide. We won’t intervene. We are going to spend less and less on agricultural subsidy, support, infrastructure. The State must withdraw as the market takes over. (But the market is not taking over.) Of course,  you can’t help wondering what actually public spending in the past yielded. Dams and canals took decades to build, guzzled money several times the original budgets and yet could not deliver as much water to as many farmers as they promised. Trillions of rupees supposedly advanced to farmers as credit still left most of them dependent on borrowings from food traders, moneylenders and relatives. What happened to the long list of programmes intended to insulate farmers from the vagaries of monsoon in the rain-fed areas­—60 per cent of the total area of cultivation?
Why did the Planning Commission introduce a programme in one Five Year Plan, calling it key, crucial, game-changing, and then express regret in the following Five Year Plans that it was not properly implemented? Why was the nation rich in ideas, poor in practice? Why did we see little implementation, but plenty of lamentation? And why it is still so? What revolutionary restructuring of administration have you brought about during your two terms to change that?
The institutional failure in alleviating poverty was not only obvious in the poor management of crop productivity- raising programmes, it was also evident in the non-implementation of land ceiling and redistribution policies. Only, in these policies, the political leaders consciously opted to be poor managers. They would do nothing to destabilise the class and caste hierarchies in the village; on the contrary, they played along with them to survive and thrive in politics. Had they sincerely worked to see that the landless got even an acre or less, poverty would have been much less acute, as the beneficiaries would have conceivably at least grown food for their families. The consequence of unbroken social hierarchy was not only that the poor in the village remained poor, but they could either get no jobs or only low-paid jobs in towns where men from the higher castes would have a monopoly of better-paid and skilled jobs.
But what political leaders dare not do, the higher castes and classes have brought upon themselves. Never keen as agriculturists, they have sold their land or divided it among inheritors or ceded to militant cultivating peasants. The number of large farm holdings (10 ha and above) has plunged from 4.37 million in 1960-61 to 1 million in 2010-11. During the period, the total number of farm holdings has risen from 48 million to 137 million. Holdings under 2 ha (small and marginal farms) make 85 per cent of this total. In the next 20 or 30 years, most large holdings will split up, making India a country almost wholly of small farmers.
How does the nation take care of the crores of small farmers? Our economist-doctor knows only one remedy: Move them to towns. Urbanise, urbanise, urbanise. But he does not say all should move or only a certain percentage of them. What would be that certain percentage? Or does he want India to follow the path of America, where 80 per cent of the population was engaged in agriculture in the 1850s and only one per cent today is?
He will ruin India if he takes her along the American road. The historical factors—a small population of settlers and a continent of land; the World War II, which drew rural populations to the army and the post-war reconstruction boom—that shaped US agriculture are not to be seen in India. Nor are the cultural factors—a meat-eating population, requiring large grazing lands for animals. Nor indeed the economic ethos—a faith in capitalism bred by blind hatred of anything resembling socialism. The World War II and India’s wars with China and Pakistan did not drain villages of youth. India was a largely vegetarian country, comprising self-contained villages where peasants grew food for themselves and needed small pastures for their draught and milch cattle. The mean size of farms in the US increased from 50 hectares in 1870 to over 200 hectares by 2000. The average size of a farm in India shrank from 2.3 hectares in 1970-71 to 1.16 hectares in 2010-11. 
What is Manmohan’s vision—that we draw out most of the farmers in order to facilitate the takeover of the countryside by big capital? In the United States today, less than 10 per cent of the farms account for 65 per cent of sales of agricultural products. Despite the ‘prosperity’ from the Green Revolution, even Punjab, Haryana and western Uttar Pradesh have not witnessed concentration of cultivable lands on such an epic scale. The ‘rich’ farmers do not have much capital to buy lands. Corporates have big capital. Agribusiness multinationals have big capital. And they are eyeing India. They are goading the doctor at the top to do the surgery on rural India.
We have had a ‘socialistic’ past, the Congress party is shrinking, and there is a very real danger of disaffection among farmers turning toxic: so the doctor fears going for his scalpels and retractors. But that is what his heart seems to be telling him to do; he is obsessed with it, so he is doing it without surgery. His alternative remedy is: supply less nutrition to agriculture; smoke out the village population by causing a conflagration in their bellies.
 

 

The model that seems workable in India is for most farmer families to grow their own food, while extra income comes from jobs in industry or services in towns or the smaller cities near their villages.
 

 
But that is going to be destructive. Agriculture is the engine of economic growth. To weaken agriculture is to weaken India’s foundations. How can we forget that the tiger economies of Southeast Asia were built upon a strong agricultural base? How can we not see that China could cope with the loss of millions of jobs in towns in the global financial meltdown because the job losers could go back to work the farms in their villages. Manmohan cannot run away from his responsibility to strengthen agriculture. The guilt of the past governments (mostly Congress) in weakening agriculture is obvious. He has joined the galaxy of the guilty. Yet there is so much that can still be done. The crop productivity of rain-fed areas is less than half of that in irrigated areas. The productivity in irrigated areas is far lower than in developed economies. If we improve agriculture, farmers will stick to villages. America and Europe are allocating special budgets to sustain their village populations. They have recognised their mistakes belatedly. We are still in a stage where we do not have to lure populations to villages; they are already there. Get rid of the misconception that farmers want to leave agriculture. A lot of migration is natural; members of farming families take up non-farm jobs in towns. But let that be voluntary. Today migration is forced. Let agriculture develop and let youth from farming families move to non-farm jobs by their free choice.
Farmers are deeply attached to the land. Even landless labourers are using earnings from non-farm employment to buy land, for land provides food security, is still a good asset and source of prestige. Villagers’ attachment to the land, their skills and their indigenous wisdom are pillars on which a strong edifice of agriculture can be built.
What better examples of this can one find than in the villages where farmers, frustrated by institutional failure, have developed and are managing water resources on their own. In the command area of the Waghad dam on the Kolwan river in Maharashtra’s Nashik district, it is farmers’ water user associations—and not irrigation department engineers—that are managing the operations and maintenance of the canal network. The cash crop boom resulting from their water management has ended out­-migration and is attracting in-migration.
In Ralegan Sidhi village in Ahmednagar district of Maharashtra, Anna Hazare brought water to the fields simply by mobilising villagers to go in for watershed development, reducing out-migration. In the Bhaonta-Kolyala village in Alwar district of Rajasthan, villagers developed watersheds in a similar manner, reducing out-migration. Rajendra Singh—the ‘Waterman of India’—is credited with bringing assured irrigation through participatory watershed development and management. This he has done in over a thousand villages through Tarun Bharat Sangh, his voluntary group. That just goes to show that if watershed is developed and managed by water users, the rain-fed areas—where much of India’s poverty resides —can grow crops round the year, raise productivity, create round-the-year employment and raise agricultural wages to reduce pauperisation and migration.
Census 2011 has discovered that fewer migrants are coming to megapolises like Mumbai, Delhi and Chennai, and more to smaller towns. That goes to show that given the choice, migrants would work in non-farm jobs, even if less paying, in towns nearer their homes.
An ideal India would be one in which non-farm jobs are available to working-age members of farming families near their villages. Food can come from the small farm, while the non-farm income fulfils other needs, without breaking the families, without breaking up the communities. But for this to happen, there must be robust rural industrialisation. And for that the State has to draw private capital to new places and provide education and skills to youth in farming families. Manmohan’s State is not taking the farming families in that direction. It is forcing the rural youth to move far away from their villages. That will leave only old people in villages and there will be nobody to cultivate their land after they die.
Who will take their lands?
Our economist-king is keeping that secret to himself.

(The writer is working on a book called No Country for Countrymen: How India is Ruining its Villages.)

Monday, 27 May 2013

life in financial markets: government's fixing of the stock market

It never fails to amaze me how finance ministers of our country only want the domestic equity market to keep rising.. forever..

Here is an editorial I wrote, on a related issue, in the newspaper I work for presently:



Let the stock market be

Growing government impatience with even small market corrections is a severe setback for free markets

It is not the first time, and unfortunately it does not look like it will be the last, that our finance minister has intervened with stern remarks against equity market traders when there is the occasional scary fall taking place in the stock market. So, on Thursday morning, when there was a series of small meltdowns rocking Asian markets, including our own when it opened for trading, our current finance minister, P Chidambaram, rushed in to admonish market traders for hitting the panic button in what he evidently thought to be in a mindless manner. "The Indian market should read the situation correctly rather than be influenced by something happening elsewhere," is how this admonishment came from the country's finance minister at a hurriedly press conference on a day when Japan's equity market went into a tailspin with a four per cent fall by around the time the Indian stock market opened for trading. 

It is noteworthy that by this time other Asian markets had not fallen as much, with their declines being around 1-2 per cent only. These eastern markets typically look at how the western-most US market fared the previous day and what they saw was 1.7-2.1 per cent fall in US equity indices in the latter half of Wednesday. While Ben Bernanke's statement that if the US economy maintained momentum the US Federal Reserve would scale back in its monthly $85 billion bond buying program was the primary trigger, the Asian markets were also reacting to domestic events such as a sharp rise in Japanese government bond yields or Chinese. Even the Indian equity market opened low and had fallen by just 1.7 per cent by noon. 

Except for Japan's equity market, Asian markets, including India's, were not exactly crashing. Which is why it was surprising to observe the hasty intervention by our finance minister who one is to assume is a very busy man. But more perplexing was his admonishment that Indian market should not be influenced by something happening elsewhere. 

Chidambaram had himself opened his February 28 budget speech with this: "I shall begin by setting the context. Global economic growth slowed from 3.9 percent in 2011 to 3.2 percent in 2012. India is part of the global economy: our exports and imports amount to 43 percent of GDP and two-way external sector transactions have risen to 108 percent of GDP. We are not unaffected by what happens in the rest of the world and our economy too has slowed after 2010-11." 

So, clearly the FM does not expect the  country's economy to stay unaffected by what happens in the rest of the world but he expects the country's stock market traders to not get influenced by happenings elsewhere. 

Finance ministers of our country have never lost sleep during bull runs in the stock markets. Towards the end of 1991 when the market was in the grip of bulls which included the  scamster Harshad Mehta, the then-finance minister, Manmohan Singh had remarked that he did not lose sleep over stock market movements. But even during bull runs the markets need to take a pause and inhale some breath. Instead of scolding them like a school principal the finance ministers would do well to welcome market falls and corrections today or else they stand a chance of having to tackle scam-like bust ups in the markets tomorrow. Growing intolerance for even small market fall such as the two per cent fall we saw last week does not augur well for a free market economy, now does it.

Sunday, 19 May 2013

life in general & financial markets: excessive consumerism & exploitation of labourers


There is a definitive link between the excessive consumption demand from people (most, int terms of volume, coming from affluent citizenry) and the exploitation of labourers in several industries such as textiles and automobiles (cars etc).

Below are two recent news reportb by newsmagazine, Outlook, on the conditions for people employed in garment units in India:


http://www.outlookindia.com/article.aspx?285455
Floors Wet With Sweat
Labour is bought cheap, treated cheap—in India’s garment factories as at Bangladeshi ones

Pragya Singh




Even as the world remains morbidly fixated on the  tragedy in Rana Plaza on the outskirts of Dhaka—the collapse of the textiles sweatshop three weeks ago  buried 1,127 workers and sparked off a global outrage—it is business as usual at India’s textile hubs. And you don’t have to travel far from the city centre to find that out. All you have to do is visit an urban village in the heart of Delhi.
Mohammed Saddam Hussain and his co-worker Sanjay show up as usual in their one-room, windowless dyeing unit in Delhi’s Shahpur Jat. Their routine: dip yards of cloth into bubbling vats of chemical dye, morning to evening. Wait, there’s a snag. The LPG cylinder that fuels their water-heater has sprung a leak and the cramped room is filling up with flammable gas. Manoj, their employer, plugs the leak somehow and they resume work, immediately lighting the stove, unmindful of any risks.
Many such units, often catering to agents who supply to international ord­ers, litter the crowded streets of Shahpur Jat. Here, incomes of garment unit owners have ballooned in recent years, thanks to high-paying sub-contracts. Their prosperity is apparent from the glitzy storefronts. “I came to work in Delhi 13 years ago, and was a worker then—it’s just fate that made me successful,” says Manoj, who owns many of the tailoring units in Shahpur Jat, which he runs under the brand name Rimjhim.
But the workers—the ones embroidering, finishing or stitching the merchandise—have remained underpaid, overworked and in the same cramped conditions. For western observers, the most prominent and visible symbol of an Indian “sweatshop” is child labour. Hussain says he’s 20, Sanjay says he’s 15, both past the 14-year age limit past which 




Jitender Gupta

Tied down A garment factory in Delhi business: labour


children can work, though not in hazardous industries. Both refuse to talk about their wages.
“The textile sector in India is one of the worst offenders in terms of working conditions,” says C.K. Sajinarayan, national president, Bharatiya Mazdoor Sangh, one of the country’s largest trade unions. “The smaller units have an especially serious problem. There, exploitation is rampant.” Bad working conditions inc­lude wages so low they can’t meet basic needs, long hours, forced unpaid work, punishment for not meeting targets, and lack of emergency exits, ventilation or lighting.


Although laws are aimed at striking a balance between labour and business, workers always end up at the bad end.

“The term ‘sweatshop’ is slang, mostly used in the context of international trade between developed and developing countries,” explains Dr Helen Sekar, coordinator of the National Resource Centre on Child Labour with the V.V. Giri National Labour Institute. “What we have to look at is whether the laws are being followed or not—for instance, whether child labour is illegally emp­loyed in a unit, or if safety requirements are not being met,”  she says. In India and Bangladesh, as they battle neck-and-neck for expensive contracts to supply western retailers, working conditions are getting worse. As textile units in both countries vie to drive costs lower and lower, often companies find cruel or unusual ways to stay competitive. “In Tamil Nadu, some textile units make children work without pay until they reach marriageable age. Then the employer pays a ‘dowry’, a pittance, instead of wages, and hires a fresh batch of children,” Sajinarayan says. The government, usually silent on children employed in textile units, is working on the draft of a new, stronger legislation against child labour. This law, it hopes, will encourage children to go to school instead of work. The draft in December 2012 proposed a ban on hiring children up to 14 years old in any industry, except where they help their family after school. For a new category of “adolescent” workers, the bill proposes a list of hazardous industries where the ban will be absolute. If these changes come through, Mohan, of Shahpur Jat, Delhi, will have to fire Sanjay, or face six months in jail and/or a penalty of Rs 50,000.
During the slowdown, more than 5 lakh Indian textile workers lost their jobs in just the last six months of 2007. The average wage of a textile worker in north India was $50-60 at the time. The same year, workers in Bangladesh rioted over low payments, which were $45 on average. Wages have since been revised in India, but the industry remains in the throes of intermittent mass sackings. Earlier, workers could switch jobs to escape bad work environments, but that opt­ion is now limited. Even training, which in any other business opens up options and raises income, doesn’t alw­ays have the expected outcomes in the textile business. “Workers only ask us one thing when we tell them to train with us—‘Am I going to be upgraded after the training?’ All we can say is no, but you’ll learn something new even if your income doesn’t increase,” says B. Basu, who heads Sasmira, a training centre in Bhiwandi at which the government trains textile workers.
It isn’t just compliance, though, which leads to bad working conditions. Regulation in India is also notoriously complex, with the government stepping in only now, and cautiously, to smoothen norms. “We are working with the government towards simplification and codification of laws related to textiles. There are over 100 regulations at present, of which 40 have been identified as the minimum statutory requirements,”  says Sajinarayan. Tex­tile units need to maintain 40 different records of returns and registers, which, the unions and government agree, must be narrowed to one or two.
The flip side, unions say, is that “simplification” should not be taken for hire-and-fire, which only makes the situation worse for workers. Dr Sekar points out that labour and industrial laws impose strict conditions with good reason—“in India the law is imp­lemented, that’s why you don’t see large-scale tragic incidents like in Bangladesh,” she says. There are also social and legal compliances, unlike in Bangladesh where textiles owners often flout safety regulations.

But there’s obviously no need to get com­placent. Smaller incidents, even fac­tory fires and collapses, often go unn­o­ticed, says Pratibha, vice-president of the Garment and Textile Workers Union. Worse, the Eur­ozone crisis has hampered Indian textile’s prospects. If things slow down fur­ther, those working in India’s garment sweatshops will sadly bear the brunt.
***
The Telltale Signs
  • Low wages that aren't enough to meet basic needs
  • Long working hours
  • Forced labour
  • No overtime wages
  • Opposition to labour unions
  • Children below 14 working, or pledged away for labour
  • Dangerous working environment
  • Lack of emergency exits
***
Keeping count
  • 80 million The number of workers employed by the textiles sector in India
  • 4% Its contribution to the country’s GDP
  • 40% of Indian textile industry’s turnover is from export, much of it to retailers abroad
  • 5,00,000 Indian workers lost jobs in just the last six months of 2007
  • 50-60% of Indian textiles units are in the small-scale sector



http://www.outlookindia.com/article.aspx?285456


Through The Smokescreen, This Side Up
Amidst the misery of Bangladeshi workers, strands that trail to India
Debarshi Dasgupta

Indian Connections
  • Thousands rendered jobless in Bangladesh after Lilliput Kidswear fails to pay $4 million to factories
  • Rana Plaza housed a unit, New Wave, that was outsourced work by an Indian supplier of Benetton
  • Tung Hai Sweater Ltd, where a fire killed eight, produced garments for Indian buyers
  • As imports from Bangladesh rise, Indian buyers are being asked to ensure they or their partners don’t abuse workers’ rights
  • India imported $57.51 million worth of garments from Bangladesh between July 2012-March 2013

Jamal Hossain, owner of a garment factory in Dhaka, was a pleased man when he bagged repeated orders worth several hundreds of thousands of dollars from Indian kidswear retail giant Lilliput. He had been paid around $600,000 between 2010 and 2011. That dream run soured in September 2011 when Lilliput, because of poor fiscal management, failed to pay $277,000 for the winterwear Jamal’s workers had stitched. “This has completely destroyed my business,” says an angry Jamal. “Given this liability, no bank is now willing to support me. Those workers who have not found jobs elsewhere are just sitting at home.”
In a crisis precipitated by Lilliput, Jamal is one of several factory owners in Bangladesh whom the Indian firm owe around $5 million. Shahidullah Azim, vice-president of Ban­gladesh Garments Man­ufacturers and Exp­orters Association (BGMEA), told Outlook that as many as 22 factories have been affected by the non-payment of dues in the past two months, and around 30,000 had lost their jobs. It has bec­ome a bilateral issue too. Outlook made several unsuccessful attempts to speak with repre­s­en­tatives from Lilliput. However, reports have quoted its founder Sanjeev Narula as saying that he hopes to clear his dues by mid-June.
The Lilliput affair may be just one of many worrying stories involving Indian garment buyers in Bangladesh. After the recent Rana Plaza building collapse, which killed 1,127, there is concern that Indian buyers, focused on cutting margins, could well be turning a blind eye to the many ills of the garment industry there. Even Rana Plaza, it now turns out, had at least one India connection. One of the establishments there—New Wave—had been outsourced a contract by an Indian supplier of Benetton. Chief executive Biagio Chiarolanza disclosed this in an interview to Huffington Post to address growing concerns after clothes with the firm’s label were found at the collapsed site.


AFP (From Outlook 27 May 2013)
Red rags A worker walks amid burnt clothes at the factory in Dhaka where a fire killed eight on May 8

When Outlook contacted BGMEA for names of factories supplying garments to Indian buyers, it sent a list of 19 names. One of them happened to be Tung Hai Sweater Ltd. This is where a fire killed eight on May 8, including its owner, who happened to be one of the BGMEA directors, less than fortnight after the Rana Plaza tragedy. While safety standards were relatively better at this unit, the dead were retrieved from the stairwell, where they suffocated from fumes from burning acrylic fabric. This raised concerns about poor structural designs that make stairwells ‘chimneys instead of lifelines’. Some have even alleged the unit had no working sprinklers or exterior fire escapes.

Given these incidents, and probably more unreported ones, can Indian buyers be abs­olved of the charge of exploiting Bangladeshi labour? The big draw for them is low salaries—a third of average salaries in India. However, some like Gurvinder Singh, operations director of Rattha Overseas, Chennai, which works with 15 Ban­gladeshi factories to export clothes to the West, thinks of it as a “lot of manpower”. “If you set up a factory in India, you will not find workers,” he says, pointing to the lack of trained people.

Rashidul Alam ‘Raju’, general secretary of Bangladesh Ind­ependent Garment Workers Union Fede­ration, thinks Indian buyers must engage renowned factories to ensure that they are not unwittingly a party to the abuse of workers’ rights. “One cannot just focus on profits, you have to do so on compliance too,” Rashidul says. With garment imports from Bangladesh growing at over 30 per cent, buyers here can hardly afford to have their fabrics dyed with blood.

Sunday, 28 April 2013

life in general & financial markets: carrying on with rights violations in the name of development




Below is yet another shameful incident in India's fanaticism with doing developmental works based on completely wrong notions of development:





From: napmindia
Date: 27 April 2013 11:38
Subject: Action Alert: Repression in Narmada Canal Villages - Act Fast
To:

Date: 27th April, 2013



A Public Servant Tells this to People in a Democracy.
Let Him Know What You Think About It. CALL, SMS Mob: 09425790303

I have not come here for any dialogue with any of you (villagers) or the activists. Canal construction must be completed by 15th June, at any cost. The work will go on with police force, arresting your family, women and children as well if canal work is questioned.If any of you have problems, come to meet me at 10 p.m. or 2 p.m. in the mid-night at the police station. Contractors need not be worried about anything. Take my number, SDM’s number directly, if canal work is questioned. I am the law”
Mr. Shriman Sahukla,
Collector, District Badwani

Friends,
The events at Village Nandra, last month, must be fresh in your mind, where the farmers valiantly questioning the Omkareshwar canal work in violation of all environmental norms and rehabilitation
were arrested, false case foisted and forcible excavation undertaken, by destroying standing crop. Your support is once again urgently needed, this time by the adivasis and farmers from other villages including Mandil, Mundla, Khadkal (Rajpur Tehsil, Badwani Dist) and Malangaon, Karoli, Chhota Barda etc. (Tehsil Manavar, Dist. Dhar), who are facing the repression of the BJP-led Madhya Pradesh Govt, which is pushing ahead the canal work in violation of all norms on agricultural safeguards, environmental compliance and rehabilitation.
The Collector, Badwani with the BJP leaders and local MLA went to some of the adivasi villages Mandil, Mundla, in the Rajpur Tehsil yesterday (villages which MoEF Expert Committee had visited last year and issued recommendations), purportedly for inspection, but virtually had no meaningful dialogue with the poor adivasi-farmers and instead resorted to most vulgar abuse of the adivasis and unjustifiable threats given to the people and activists.

I have not come here for any dialogue with any of you (villagers) or the activists. Canal construction must be completed by 15th June, at any cost. The work will go on with police force, arresting your family, women and children as well if canal work is questioned.If any of you have problems, come to meet me at 10 p.m. or 2 p.m. in the mid-night at the police station. Contractors need not be worried about anything. Take my number, SDM’s number directly, if canal work is questioned. I am the law”
Mr. Shriman Sahukla,
Collector, District Badwani
The Collector was in no mood to listen to any of the issues raised by the people and was only harping on canal construction at any cost. The issue is not just of canals, but the absolutely arrogant and repressive attitude of the Collector and the ‘people’s representatives, which is being questioned by the adivasis and farmers in the notified scheduled area.
The Collector in the presence of BJP leaders, contractors, enginners and NVDA officials virtually threatened the adivasis-farmers that no questioning of any sort with be tolerated. All this happened when the people were trying to tell them that while the canal has been dug many years ago, rest of the lands are also affected either by huge rubble deposited on un-acquired potions of land, severe water logging, 60% land oustees not provided alternative cultivable land etc. None of these issues were seriously heard or considered by the Collector and the politicians, including the local MLA,Mr. Devisingh Patel, who threatened the adivasis and insulted them, abusing them and the activist with most vulgar words, calling us ‘foreign agents! This situation of repression is similar in Malangaon, Karoli, Nandra and other villages and people are having to question this with the Expert Committee’s report in their hands.
This approach is despite the fact that even the most recent MoEF Expert Committee’s 2nd Field Visit Report has concluded huge gaps in Narmada canal planning and work. The Expert Committee after visit to the villages in January, 2012 and February 2013 recommended that farmers who have faced impacts of muck disposal or destruction of un-acquired land must be compensated, 60% land oustees not provided alternative cultivable land, on-farm safeguard measures must be completed before canal work, canals should not be pushed in irrigated villages at a distance of 3 kms from Narmada etc. The Collctor and politicians did not care to listen to any of these.
The Expert Committee’s recommendation that the administration and NVDA must have dialogue with NBA and the farmers is being compleley flouted and the Collector himself has taken an extremely arrogant position that ‘no dialogue with NBA and the farmers’ will be tolerated. In this situation of complete repression and arrogance of the ruling party and the district / state administration, we request you to intervene most imemdiately since the excavation in complete disregard of all law and environmetal sagfegaurds may start anytime from today morning at Mandil and other villages.
DEMAND:
  • Immediate implementation of all the recommendations of the MoEF Expert Monitoring Committee and execution of command area and farm safeguard measures before any canal construction and mitigation of health impacts.
  • Annual compensation for muck disposal on un-acquired land, destruction of standing crop due to water logging and alternative land based rehabilitation to farmers losing more than 60% land
  • Demand review of canals in irrigated villages and detailed consultation with farmers

Tuesday, 12 March 2013

life in financial markets: who owns nse (national stock exchange)?

Here is a story I did, three months back, in the newspaper I work for, on the shareholders of NSE (National Stock Exchange of India):



Corporate shareholders of NSE tinker with their holdings



The largest stock exchange in the country in terms of value of trades, National Stock Exchange of India (NSE), was witness to three significant and interesting changes in its own shareholding in the one year period up to September 27. NSE has a paid-up equity capital of Rs 45 crore.

A Financial Chronicle Research Bureau analysis of NSE's shareholding from its statutory filings with the registrar of companies revealed that Wipro's chairman and managing director Azim H Premji transferred his entire personal 3 per cent stake in NSE to his private investment vehicle PremjiInvest's PI Opportunities Fund 1. This took place in December last year. PI Opportunities is the 12th-14th largest shareholder in NSE along with Morgan Stanley's MS Strategic (Mauritius) and hedge fund Tiger Global Five Holdings, each holding 3 per cent stake in the exchange.

The other major change took place in the form of Bajaj Holdings & Investments acquiring a 1.25 per cent stake in NSE with the selling shareholders being Fidelity India Mutual Fund's schemes, which parted with their entire collective 1.08 per cent stake in July this year, and Hero Motocorp which offloaded its entire 0.17 per cent stake in June this year. The price at which these stakes changed hands is not known.

In the 1-year period, the third largest shareholder in NSE, Infrastructure Development Finance Company (IDFC), pared its holding by 1.32 percentage points from 7.88 per cent to 6.56 per cent. IDFC, however, continued to be the third largest shareholder in NSE after Life Insurance Corporation of India and State Bank of India which held 10.51 per cent and 10.19 per cent stakes respectively.

The buyers of this 1.32 per cent stake were five of US-based foreign institutional investor (FII) Wellington Management Company's sub-accounts, Bay Pond, Wolf Creek, Kirykos, Ithan Creek and Quissett. These stake buy-outs took place in November last year but the price they paid IDFC for it is not known.

In the year before, between September 2010 and September 2011, Wellington's various sub-accounts had collectively acquired 0.93 per cent stake from Financial Technologies (India). Those purchases took place at a price of Rs 3,800 per share for a value of about Rs 160 crore. With the latest November acquisition of 1.32 per cent, Wellington's various sub-accounts now hold 2.25 per cent in the country's largest stock exchange.

There were no other stake changes during the 1-year period upto September this year. In all, there were 64 shareholder entities and funds holding shares in NSE.

Interestingly, some large shareholders in NSE also held relatively large stakes in its rival, Bombay Stock Exchange. The most prominent examples are that of LIC and SBI, which were the third and fourth largest shareholders in BSE as of August this year with a 4.84 per cent stake each.

Monday, 11 March 2013

life in general: (part 6) abuse of women/girls -- india's shame

{Parts 1 to 5 of this post series were posted in December last year (2012) and January this year (2013) -- part 1, part 2, part 3, part 4 and part 5}


Another case, an old case where a girl was sexually abused and raped in Kerala by several men in a period spanning several days, numbs the senses. In this case, a Congress party's very senior politician, PJ Kurien, is also alleged (by the girl) to be one of the crime-committers and a BJP party's senior politician, Arun Jaitley, was his lawyer when the matter reached the Supreme Court.

Here is an insightful analysis of the case I came across in a weekly newsmagzine:


http://www.openthemagazine.com/article/nation/17-years-of-solitude

17 Years of Solitude

The psychological abyss that the Suryanelli rape victim and her family have been living in because she dared name PJ Kurien 
 
Shahina KK  
 
For the person known as the Suryanelli girl, this is the seventeenth year after she was kidnapped and gangraped by 42 men over a period of a month. Her family spends all its time praying—they are devout Christians. They have God, about the only thing they have, but she does not go to church. She does not go to the cinema. She does not participate in festivals. She does not go shopping. She does not go for marriage ceremonies. She does not even go to funerals. She gets on a bus in the morning every day, goes to the office and comes back home in the evening. She has 13 colleagues in office, some of them relatives of the accused in her case. The atmosphere is not friendly. “They openly show their hatred of me,” she says. On her way to office by bus, co-passengers stare at her and whisper to each other. “People sometimes call up others and show them ‘the rape story girl’,” she says.
+++
On 16 January 1996, she was reported missing from her remote village of Suryanelli in Idukki district. After 40 days, she turned up at the post office where her father worked. She later told her mother of her horrific experience. She had had an affair with a bus conductor, who used her photographs to blackmail her into going on a trip with him. She took the bus with him. He disappeared on the way, a part of the plan. She was then befriended and kidnapped by a woman, turned over to a man called SS Dharmarajan, who raped her and then took her all over Kerala. As many as 42 men raped her at different times. She was then sent back, 16 years old at the time.
When she reached home, there were wounds on her body and genitals. She couldn’t even walk properly. Two weeks later, she saw a newspaper photograph of PJ Kurien—then a Union minister and now deputy chairman of the Rajya Sabha— and recognised him as one of her rapists. She alleged that he had raped her at a government guest house in Idukki. The family’s complaint to the police that Kurien was one of the rapists gave the case a momentum beyond their comprehension, and set them on a road of horrors worse than those they had already known.
It was the year of both Assembly and Lok Sabha elections in Kerala. During the campaign, the CPM had made the rape an election issue to target the Congress and Kurien. Suddenly, newspapers like Malayalam Manorama that are close to the Congress changed their tone about the girl. Until then, they had been sympathetic to her. Now they started alluding and sometimes even directly referring to her ‘immoral track record’. She was accused of eloping with her boyfriend, though that was not the case. The family came under immense pressure to withdraw the charges. The police told them it would ruin the girl’s future and the family’s reputation. They were spurned by relatives, isolated by their social circle, but they refused to drop the case.
Kerala’s first ever special court to try a case of sexual assault was formed, and the trial began in 1999. The chargesheet accused 41 people of conspiracy, abduction and gangrape of a minor girl. PJ Kurien was not among them; the investigating team exonerated him, citing his alibis. In 2000, the court convicted 35 and sentenced them to terms ranging from four years to life. Four were let off; two, including the main accused Dharmarajan, were absconding. In January 2005, the High Court of Kerala acquitted all the 35 accused on appeal. Dharmarajan, who had been caught by the time, was sentenced to five years’ imprisonment, but not for rape. It was for dragging the girl into the ‘sex trade’. The High Court found that she had crossed 16 (she was 16 years and three months old when she was abducted), the age of consent for sex, and ruled that the prosecution had failed to prove the absence of consent.
Meanwhile, the girl had filed a petition in the Peerumedu magistrate court against Kurien being absolved by the investigating agency. The court found there was prima facie evidence against Kurien and asked him to face trial. He filed an appeal in the High Court. The litigation went on till 2007, when he was let off on grounds that all the 35 accused in the case had been acquitted. The Supreme Court approved the High Court’s judgment and dismissed the appeal filed by the girl. Kurien had the best of lawyers—Arun Jaitley, the BJP leader of Opposition in the Rajya Sabha, represented him in the Supreme Court.
+++
Eight long years have passed since the High Court acquitted the 35 accused. On 31 January 2013, the Supreme Court, expressing shock over the High Court judgment letting off the accused, ordered a retrial with a judgment to be made in six months. The case, which had been dormant, became a national issue following the girl’s fresh plea to the Supreme Court to also book Kurien in the case. Kurien’s alibis of 1996 have begun to unravel one by one. Recently a Malayalam news channel interviewed Dharmarajan, who is again absconding, and he told them he had led Kurien to the guest house.
+++
I first met the girl in 1999. When I met her last week, I was appalled to see that little had changed in her life. Rape victims do often make the journey from victim to survivor, but not this one.
Initially, the family had been staying in Suryanelli at quarters allotted to her mother, who was a nurse in a tea estate hospital. “When we were staying there, we had tremendous support from the estate labourers .We were safe. After her retirement, we shifted to our own house at Suryanelli. It was an isolated place. There were very few houses around. Domestic tourists would stop in front of our house to have a glimpse of the ‘Suryanelli girl’. People even used to come inside the house, unmindful of our shame and agony. For them, it was part of their picnic,” says her father, a retired government employee, now over 75.
After the High Court verdict, the family went away from Suryanelli. In 2006, they bought a house at Chingavanam in Kottayam. They chose this place because it was isolated. “When we came here, there were only one or two houses around. It was good for us, since we did not have to face anybody,” says the girl’s mother. But the shift did not help them rebuild their lives.
They stayed disconnected from everything and everyone even as new houses sprung up in their neighbourhood and people moved in over the span of a decade. They were anyway spurned by relatives, who were against their persisting with the legal battle. In 2000, the girl was given a job by the LDF government—a bottom grade employee in the sales tax department. What seemed like a lifeline then eventually became a trap. In February 2012, she was arrested for forgery and corruption over a two-year-old case. The police version is that she had failed to remit Rs 2.26 lakh and the corresponding ledger was found missing. Anila George, a lawyer who has been helping the girl all along, says it was a clear frame-up. “This case was actually closed in 2010. That office was notorious for corruption. She had remitted the money and entered it in the book, but curiously the book went missing. She was told there was no proof she had actually remitted the money. Her colleagues advised her to raise that amount and remit it as early as possible. Her family mortgaged the gold they had and did so. There was a departmental enquiry and three employees, including the girl, were given punishment transfers. Everybody was under the impression that the file had been closed after her transfer. Nobody, [not even] the girl and her family, had any clue that a secret enquiry was still on against her.”
The arrest was unexpected. She was waiting for the bus to go to office when the police came and picked her up. She was remanded, sent to jail and got bail only after a week. There were two more people involved in the same graft case, but only she was put in jail. Suja Soosan George, an office bearer of a CPM-backed cultural organisation, says, “It has to be noted that this case resurfaced when her appeal was listed in the Supreme Court.” She feels that it was a deliberate move to convey a message to the Supreme Court that this girl cannot be trusted. Character assassination all over again.”
There has been no local support for the family and their self-imposed exile is partly responsible for this. “I came to know that the Suryanelli girl is living in this locality only a couple of years ago,” says a local leader of AIDWA (All India Democratic Women’s Association). Local collectives like Kudumbasree are also not aware of her presence. Anita Sabu, a former panchayat member in the locality, agrees that there has been hardly any intervention to generate support for the family. “The people have an aversion to them. They all keep their distance,” she says. When the girl was languishing in jail last year, there was hardly any support from the employees’ union she was part of. “They turned their back on her. It was SUCI (Socialist Unity Centre of India) that helped the girl get bail,” says Anila George.
The 31 January Supreme Court verdict bears hope for the family. “I hope my daughter gets justice before I die,” says her father. Recently, television channel India Vision did a sting on Justice R Ba- santh who had delivered the High Court judgment letting off the 35 accused. He now practises in the Supreme Court. The sting caught him on camera saying, “She was a child prostitute. It was not rape. She used to misuse the money given by her father to remit the school fees. She was a child with a bad track record.”
He also said the Supreme Court judges had not read his judgment carefully, which could invite contempt-of-court action against him. But a careful reading of his judgment can only lead to the conclusion the Supreme Court reached. Because Justice Basanth’s judgment even links the girl’s childhood habit of wetting her bed to the rape. Her sister used to wash her clothes after she wet her bed. The judgment noted, ‘It shows that she had the tendency to make others responsible for all she does.’
While acquitting the rapists, the judges totally ignored the medical report, in itself telling evidence of the rapes and torture she had endured. The medical report is elaborately quoted in the judgment. Yet, the conclusion reached was that there was no evidence of resistance.
Paragraph #94 of the judgment says: ‘Vaginal examination was painful, vulva was oedematous. There was infection. There was purulent foul smelling discharge. PW73 (The doctor who examined her) says intra-uterine contraceptive device can also cause infection. In chief examination, he says that “she would have suffered severe pain during the sexual act if it had continued as stated by her during the period of infection”. In further cross, he says that, he examined vaginal wall and that he did not find it lacerated. He also agreed that during violent intercourse “laceration in vaginal wall occurs posterior”. In further cross-examination by the accused, he answered specific questions as follows:
“On the condition you had seen when PW3 (the girl) was examined by you, I put it to you that it is not possible to have sexual intercourse with PW3 (Question) It is possible provided force and intimidation is used (Answer).
If force is used, she would cry loudly (Question) Yes (Answer)”.
PW3 has no case that she had even wept while during the alleged rapes continuously, much less any loud cry. Even on the night of 24/2/96, there was, allegedly, rape on her. In spite of that no resistance mark was found on her body. According to PW73, the Doctor “there were no signs of evidence of resistance”. According to him, sign of resistance is the most common feature in a case of rape and as she was subjected to violent sexual intercourse “there can be signs of resistance”.
Thus, the medical evidence in this case also does not offer any specific and satisfactory probative corroboration to the testimony of PW3.’
This seems to be the convoluted logic—because her vagina was so badly infected, she would have to be in considerable pain during any sexual act, and she would weep from the pain. Because she didn’t weep and there were no signs of resistance, the sex must have been consensual.
Contrast this with the observation of advocate K Bhadrakumari, a practising lawyer in the Kerala High Court, who met the girl on the fourth day after her return: “There was swelling and inflammation all over her body. Her mother told me that pus and blood was flowing out of her vagina even after four days of her return. She was neither crying nor talking. She turned up frozen.”

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