30 September 2014

Obama, the serial interventionist

Barack Obama has been more at ease waging wars than in waging peace. He has proved to be one of America’s most militarily assertive Presidents since World War II

America’s Nobel Peace Prize laureate president, Barack Obama, who helped turn Libya into a failed state by toppling its ruler Muammar Qadhafi, has started a new war in Syria and Iraq even as the U.S. remains embroiled in the Afghanistan war. Mr. Obama’s air war in Syria — his presidency’s seventh military campaign in a Muslim nation and the one likely to consume his remaining term in office — raises troubling questions about its objectives and his own adherence to the rule of law.
While it has become imperative to contain the Islamic State (IS), a Sunni jihadistarmy that has imposed a despotic medieval order in the territories under its control, any fight against terrorism can be effectively waged only if it respects international law and reinforces global norms and does not become an instrument to pursue narrow, geopolitical interests.
Ever since America launched its “war on terror” in 2001 under Mr. Obama’s predecessor, George W. Bush, the scourge of international terrorism, ominously, has spread deeper and wider in the world.Jihadist forces extolling terror as a sanctified tool of religion have gained ground in a number of countries. Once stable nations such as Iraq, Syria and Libya have become anarchic, crumbling states and new hubs of transnational terrorism, even as the Afghanistan-Pakistan belt remains “ground zero” for the terrorist threat the world confronts.
War on U.S. terms
Mr. Obama was supposed to be fundamentally different than Mr. Bush — an expectation that led the Nobel committee to award him the Peace Prize soon after he assumed office. Yet, underscoring the disconnect between his words and actions, Mr. Obama has been more at ease waging wars — that too in breach of international law — than in waging peace. He has proved to be one of America’s most militarily assertive Presidents since World War II, with his readiness to use force driven by a penchant to act as judge and executioner.
Mr. Obama in Cairo in 2009 sought “a new beginning” between the U.S. and Muslims “based upon mutual interest and mutual respect.” However, his reliance on U.S. hard power has been underlined by his serial bombing campaigns in Libya, Somalia, Yemen, Iraq and Syria. He also directed a threefold increase in the number of U.S. troops in Afghanistan, sharply escalated drone attacks in Pakistan, and initiated “targeted killing” of even U.S. citizens with suspected ties to terrorism. And now comes the news that this warrior-in-chief, having championed “a nuclear-free world,” has quietly pursued plans for an extensive expansion of the U.S. nuclear arsenal, already the world’s costliest and most-sophisticated.
Core of a coalition
What stopped Mr. Obama from seeking United Nations Security Council (UNSC) mandate before initiating a war in Syria against IS militants? The answer is obvious: Mr. Obama wants to wage his open-ended war on U.S. terms, like his earlier interventions.
Five repressive Arab autocracies form the core of his “coalition of the willing” on Syria. Paradoxically, four of the five — Qatar, Saudi Arabia, Jordan and the United Arab Emirates — plus the U.S., aided IS’s rise, either openly or inadvertently. This is a coalition of sinners now dressed as knights in shining armour.
Such has been the tepid international response to what the White House admits will be a multiyear military offensive in the Syria-Iraq belt that only five of the 22 Arab states (or, to put it differently, five of the 57 members of the Organization of Islamic Cooperation) have joined the coalition. And even though the U.S. is striking a terrorist group, its urge to test new weapons has led to the debut in war of the problem-plagued F-22 stealth bomber.
Mr. Obama displayed his disdain for international law by addressing the U.N. after presenting his bombing blitzkrieg in Syria as a fait accompli. To rationalise the unleashing of force in Syria by bypassing the U.N., his administration has meretriciously claimed the defence of a third country, Iraq, as a legal ground. Such a precedent could allow the sovereignty of any nation to be violated.
In reality, this is just the latest U.S. action mocking international law. Other such actions in the past 15 years include the bombing of Serbia, the separation of Kosovo from Serbia, the invasions of Afghanistan and Iraq without UNSC authority, Qadhafi’s overthrow, the aiding of an insurrection in Syria, Central Intelligence Agency (CIA) renditions of terror suspects, and the National Security Agency’s Orwellian surveillance programme. Yet, Mr. Obama has escalated a sanctions campaign against Russia in the name of upholding international law.
Creating, fighting the problem
Indeed, he has not sought even U.S. congressional authorisation before embroiling his country in yet another war. To justify his serial interventions and interminable war making, Mr. Obama has continued to speciously cite the congressional authority Mr. Bush secured to specifically go after those that “planned, authorized, committed or aided” the September 11, 2001 terrorist attacks. But given that linking IS to the 9/11 attacks would stretch plausibility, especially since al-Qaeda has publicly disavowed IS, his administration started the Syria war by claiming an “imminent” threat to U.S. homeland security from a previously unknown “Al Qaeda affiliate,” Khorasan.
The unpalatable truth that Mr. Obama seeks to obscure is that the main IS force was born in Syria out of the CIA-trained, petrodollar-funded rebels who were reared to help overthrow Syrian President Bashar al-Assad. Mr. Obama turned a blind eye as IS made significant advances from mid-2013 onward. IS militants ceased to be “good” terrorists undermining Mr. Assad’s rule and Iranian interests after they threatened U.S. interests and beheaded two American journalists.
If President Ronald Reagan accidentally fathered al-Qaeda, Mr. Obama is IS’s unintended godfather turned self-declared slayer-in-chief. Having earlier tasked the CIA with aiding Syrian rebels to help oust Mr. Assad, Mr. Obama has now tasked the agency to create a proxy ground force against IS in Syria by training and arming thousands of more insurgents.
It affects India
Training and arming non-state combatants flies in the face of international law. The directive also ignores the lessons from past covert interventions. “We had helped to create the problem that we are now fighting,” Ms. Hillary Clinton candidly told Fox News as Secretary of State, saying “we had this brilliant idea we were going to come to Pakistan and create a force of mujahideen and equip them with Stinger missiles and everything else to go after the Soviets inside Afghanistan.” Mr. Obama’s own creation of “moderate” rebel forces in Libya has badly backfired.
The U.S. indeed has also contributed to India’s terrorism problem. After all, large portions of the CIA’s multibillion-dollar military aid for the Afghan rebels in the 1980s were siphoned off by the conduit, Pakistan’s Inter-Services Intelligence (ISI), to trigger insurgencies in India’s Kashmir and Punjab. India — and Pakistan — have paid a heavy price for America’s continued cosy ties with the Pakistani military and its ISI spies. Yet, paradoxically, the U.S. has used counterterrorism as a key instrument to build a strategic partnership with India.
Mr. Obama pledged in Cairo in 2009, “We do not want to keep our troops in Afghanistan. We seek no military bases there.” But in a change of heart, he now wants bases there for a virtually unlimited period. The resolution of the political crisis in Kabul opens the way for Afghanistan to sign the bilateral security agreement that Mr. Obama has sought as the legal basis to keep U.S. bases. A residual U.S. force, however, will be more vulnerable to Taliban attacks, thus strengthening Washington’s imperative to mollycoddle Pakistani generals and cut a deal with the “Quetta Shura.”
As the longest war in its history in Afghanistan attests, the U.S. is better at starting wars than in ending them. What Mr. Obama has started as an offensive against IS is likely to evolve into something more geopolitical in nature, including to repair the damage to U.S. interests from America’s decade-long Iraq occupation, which made Iran the real winner.
More broadly, America’s long-standing alliance with the Gulf’s jihad-bankrolling Islamist monarchs does not augur well for its “war on terror,” which has spawned more militants than it has eliminated. With U.S. support, the oil monarchies, even the most tyrannical, have been able to ride out the Arab Spring. Paradoxically, the U.S. practice of propping up malleable Islamist rulers in the Middle East not just spurs strong anti-U.S. sentiment, but also fosters grassroots support for more independent and “authentically” Islamist forces.
A rolling, self-sustaining war targeting terrorist enemies that America’s own policies and interventions continue to spawn is not good news even for the U.S., whose military adventures since 2001 have cost $4.4 trillion, making its rich military contractors richer but destabilising security in several regions. At a time when America faces a pressing need for comprehensive domestic renewal to arrest the erosion in its relative global power, it can ill-afford self-debilitating wars. Unfortunately for it, one eternal warrior in the White House was succeeded by another serial interventionist.

26 September 2014

Industry lines up behind Modi’s pitch

“FDI should be understood as ‘First Develop India’ along with ‘Foreign Direct Investment”

Prime Minister Narendra Modi launched the ‘Make in India’ campaign at a high-profile event on Thursday, which captains of industry from India and abroad immediately joined by committing multi-crore investments and projects in the presence of Mr. Modi.
Speaking on the occasion, Aditya Birla Group chief Kumar Mangalam Birla said his steel-to-software conglomerate already had its manufacturing base in India and now planned to leverage its global production facilities for bringing technology here.
“We too are dreaming big and imagining bold as that is the only way to achieve the Prime Minister’s clarion call,” Mr. Birla said. He further said that at a time when India needed one million new jobs every month to fully harvest its demographic dividend, the Prime Minister’s call could not have been better timed.
The head of India’s largest private sector company, Mukesh Ambani of Reliance Industries (RIL), called the launch of the campaign a historic day for Indian industry and said, “We are committing ourselves to the movement our beloved Prime Minister had given to 1 billion Indians on Independence Day… The uniqueness of his leadership is that he dreams and he does.”
In the RIL pipeline, Mr. Ambani said, are Rs. 1,80,000 crore of investments and 1,25,000 new jobs over the next 12 to 15 months.
Unveiling the campaign logo earlier, Mr. Modi said “FDI should be understood as ‘First Develop India’ along with ‘Foreign Direct Investment’” while encouraging investors not to just look at India as merely a market but also as an opportunity.
The Prime Minister pointed out that it was crucial to increase the purchasing power of the common man to boost demand and thus spur development.
“The quicker people are pulled out of poverty and brought into the middle class, the more opportunity there will be for global business,” Mr. Modi said inviting global investors to set up cost-effective, high-technology manufacturing in India and at the same time create jobs.
Mr. Modi said he had detected pessimism in the business community over the past few years mainly due to lack of clarity on policy issues. He had even heard Indian businessmen say that they wanted to pack up and set up business elsewhere. This had hurt him and wanted no Indian business should feel a compulsion to leave India under any circumstances. But on the basis of the experience of the past few months, he could say that the gloom had lifted.
The Prime Minister also noted that India ranked low on the “ease of doing business” index and said he was sensitising government officials to the need for “effective” governance.
Increase purchasing power to boost growth: Modi
The launch of Prime Minister Narendra Modi’s flagship ‘Make in India’ campaign was simultaneous at the national, State and global level in Indian missions abroad. The ‘Make in India’ initiative has its origin in the Prime Minister’s Independence Day speech where he called for the initiative coupled with a ‘Zero Defect Zero Effect’ policy.
In his inaugural address, the Prime Minister pointed out that it was crucial to increase the purchasing power of the common man in order to boost demand and thus spur development. “The quicker people are pulled out of poverty and brought into the middle class, the more opportunity there will be for global business,” Mr. Modi said inviting global investors to set up cost-effective, high-technology manufacturing in India and at the same time create jobs.
Also speaking at the high-profile launch here, Bosch’s Executive Director Franz Hauber said the mood in India had turned positive after the new government took office and urged it to address the infrastructure issues, work to improve ease of doing business and set up quick single window approvals for investment projects. The change in the mood has created huge optimism for the German technology services company, he observed.
“Under the leadership of Mr. Modi we are greatly encouraged to join the ‘Make in India’ programme that brings together industry and government for crafting a new future,” said Tata Group Chairman Cyrus Mistry.
Wipro Chairman Azim Premji cautioned that it would be the “layers, details and mindsets” that will determine competitiveness of India as a manufacturing hub.
“The government is committed to chart out a new path wherein business entities are extended red carpet welcome in a spirit of active cooperation,” Commerce and Industry Minister Nirmala Sitharaman said earlier speaking at the launch. She assured that the government was closely looking into all regulatory processes with a view to making them simple and reducing the burden of compliance on investors.

Made in India, by small enterprises

The Prime Minister’s call for making India a manufacturing hub and creating jobs should boost small and medium enterprises as well

Prime Minister Narendra Modi’s ‘Make in India’ campaign is creating waves both in India and abroad. Given the government’s intention to boost domestic manufacturing and create new jobs, its proposal to introduce a new policy for Micro, Small and Medium Enterprises (MSMEs) deserves a closer look. While Mr. Modi’s invitation to international companies to make investments has been receiving a lot of attention, the government’s close interaction with industry associations from different regions and sectors within India to discuss specific problems inhibiting domestic enterprises deserves equal consideration.
India’s MSME sector has recorded more than 10 per cent growth in recent years despite the economic slowdown. MSMEs contribute nearly eight per cent to the national GDP, employing over eight crore people in nearly four crore enterprises and accounting for 45 per cent of manufactured output and 40 per cent of exports from India. Thus, the focus of the government on MSMEs at this juncture is justified given their potential for providing growth and employment.
Significant initiatives
In view of the significance of the sector, the government had announced a number of measures in its first budget. Some of the significant initiatives were setting up of Rs.10,000 crore of venture capital fund and establishing a nationwide, district-level incubation and accelerator programme for encouraging entrepreneurship. Other important budgetary announcements included establishing a network of Technology Centres; revising the definition of MSMEs for providing higher capital ceiling, friendly legal bankruptcy framework to enable easy exit, a programme to facilitate forward and backward linkages with multiple value chain of manufacturing and service delivery to be put in place, and launching the Skill India movement for youth with an emphasis on employability and entrepreneurship. A committee was also proposed to examine the financial architecture with a view to removing bottlenecks and creating new rules and structures for the sector. The government recently inaugurated a holistic, innovative and low-cost National Small Industries Corporation’s online e-commerce shopping portal for buying and selling of products produced by MSMEs.
MSMEs are mainly classified as manufacturing and service enterprises. There is a specific stipulated limit on investment in plant and machinery for each of the respective micro, small and medium segments in manufacturing with a maximum limit of Rs.10 crore, and for equipment in service enterprises with a maximum limit of Rs.5 crore. MSMEs with 94 per cent of units unregistered are highly diverse in terms of their size and the level of technology employed. The production in the sector ranges from output of grass-root village industries and auto components, to microprocessors, electronic components and electro-medical devices.
Since 1948, successive governments have been making intense efforts to encourage MSMEs but the sector continues to be under stress. The office of Development Commissioner for MSMEs was set up in 1954 and a dedicated Ministry for MSMEs in 1999. The Small Industries Development Bank of India (SIDBI), established in 1990, is the principal financial institution for promotion, financing and development of the MSMEs in addition to commercial banks, State financial corporations, and State industrial development corporations. Despite such efforts, some of the key problems faced by MSMEs continue to be related to availability of technology, infrastructure and managerial competence, and limitations posed by labour laws, taxation policy, market uncertainty, imperfect competition and the skill level of the workforce.
The problems faced by MSMEs need to be considered in a disaggregated manner for successful policy implementation as they produce very diverse products, use different inputs and operate in distinct environments. In general, there is need for tax provisions and laws that are not only labour-friendly but also entrepreneur-friendly. More importantly, there is need for skill formation and continuous upgrade both for labour and entrepreneurs. While the government has to strengthen the existing skilling efforts for labour, there is an urgent need for managerial skill development for entrepreneurs running MSMEs — an area that is considerably neglected. These programmes for entrepreneurs could be offered in a structured way in Industrial Training Institutes and management schools to include modules on management, labour laws, accounting, financial markets, procurement and marketing skills. Further, the government could consider dedicated television and radio programmes, similar to agriculture, to help educate entrepreneurs running small businesses.
Consumer tastes have been evolving as greater integration with global markets takes pace. In order to keep pace with changing tastes, large corporate firms have made substantial investment in extensive research and developing suitable product ranges. However, due to shortage of office space and financial resources, many micro and small enterprises are unable to invest in R&D and develop new products, and perish as a result.
Therefore, government support in undertaking research to help develop new products that are being produced by MSMEs could be very helpful, similar to what agriculture universities do. Similarly, to encourage products manufactured by MSMEs, India could illustratively showcase and promote their products such as phulkari of Punjab, bamboo works of Assam and West Bengal, and cotton weaving of Tamil Nadu via galleries and museums.
Credit crunch
Issues related to credit, like adequacy, timely availability, cost and mortgages continue to be a concern for MSMEs. Consequently, 93 per cent of units in the MSME sector are dependent on self-finance. Profit margins are extremely thin due to stiff competition and the small size of firms. The government drive for financial inclusion could benefit MSMEs. The government could consider dedicating specialised financial schemes for addressing difficulties in assessing and providing credit for the MSMEs, as also providing line of credit to firms which are under financial stress. Given the grand financial inclusion initiative, maximum employment and growth with minimum difficulty to the entrepreneur will augur well for the country.

Minimum Pension Scheme launched


The Union Minister of Labour & Employment, Steel and Mines, Shri Narendra Singh Tomar announced the launch of a guaranteed minimum pension of Rs 1000 per month under Employees’ Pension Scheme, 1995. Speaking to journalists at a press conference in here today, he said, the Union Government has decided to organize functions in every office of the Employees Provident Fund Organisation spread across 120 locations in the country. It has also been decided that in 37 locations, Union Ministers will preside over the functions and felicitate the pensioners whose pension is getting increased.



Shri Tomar stated that this is being done to interact with the pensioners and to ensure that no eligible person is left out. He expressed confidence that this interaction will help the EPFO to design its pension re-engineering process in a better way. The Secretary, Ministry of Labour and Employment, Smt Gauri Kumar and Central PF Commissioner Shri K.K. Jalan were also present on the occasion.



The Minister said that the long-pending demand for increase in the pension will soon see the light of day. At present, a large number of pensioners are getting only paltry amounts as pension under the scheme. Nearly two-thirds of the pensioners are in receipt of pension of less than 1000 rupees. Thus, this move would benefit approximately 32 lakh out of a total of 49 lakh pensioners who are getting below Rs 1000 as pension, he added.



It is relevant to note that the wage ceiling for coverage under the three schemes of EPFO i.e. Employees Provident Fund Scheme, Employees’ Pension Scheme and Employees’ Deposit Linked Insurance Scheme (EDLI) has also been increased from monthly Rs 6500 to Rs 15000. This increased wage ceiling is expected to bring in an additional 50 lakh employees under the ambit of these social security programmes. The increased wage ceiling will also result into higher benefit under the EDLI from a maximum of Rs.1,30,000 to a maximum of Rs 3,60,000.



In the recent past EPFO has taken a series of measures to bring in greater transparency and efficiency in its functioning. These include the facility for online registration of establishments (OLRE), Online Transfer Claim Portal (OTCP), e-passbook and electronic payment of PF and Pension benefits through NEFT (National Electronic Fund Transfer) and CBS (Core Banking Solution).

Forbes list of India’s richest tycoon


Washington: Reliance Industries chairman Mukesh Ambani has topped  the Forbes magazine’s list of the top 100 richest tycoons in India for the eighth consecutive year with a net worth of $23.6 billion, up $2.6 billion from last year.
For the first time, the top 100 richest tycoons in India are all billionaires, according to the latest Forbes rich list. The combined net worth of India’s 100 wealthiest is $346 billion, up more than a third from $259 billion in 2013.
“In 2014, India’s outlook has moved very quickly from gloom to boom. The new federal government’s mandate for change has sparked euphoria in the stock market causing a seismic shift in Indian wealth this year,” said Naazneen Karmali, India Editor of Forbes Asia.
Dilip Shanghvi, founder of Sun Pharmaceutical Industries, India’s most valuable drug maker, is the new No. 2, overtaking steel baron Lakshmi Mittal, who slips to fifth place. Sun Pharmaceutical’s shares surged after it acquired rival Ranbaxy Laboratories from Japan’s Daiichi Sankyo for $4 billion in April, Forbes said.
The 59-year old Shanghvi saw his fortune rise by $4.1 billion to $18 billion. Moving up one notch to No. 3 is Azim Premji, whose net wealth increased to $16.4 billion from $13.8 billion previously.
In July, his tech firm Wipro set up a $100 million venture capital fund to back startups led by his son Rishad.
The biggest dollar gainer is ports magnate Gautam Adani, who jumped 11 spots to No. 11 adding nearly $4.5 billion to his wealth which reached $7.1 billion on soaring shares of his companies.
Adani has been on a buying spree: he bought a port in eastern India from the Tata Group for $900 million and agreed to pay $1 billion for a power plant in southern India, Forbes noted.
The minimum amount required to make the list was $1 billion, up from $635 million in 2013. With a record minimum net worth this year, 11 from last year fell off, including tycoons Brij Bhushan Singal and Vijay Mallya.
The top 10 richest in India are:
1)      Mukesh Ambani; $23.6 billion
2)      Dilip Shanghvi; $18 billion
3)      Azim Premji; $16.4 billion
4)      Pallonji Mistry; $15.9 billion
5)      Lakshmi Mittal; $15.8 billion
6)      Hinduja brothers; $13.3 billion
7)      Shiv Nadar; $12.5 billion
8)      Godrej family; $11.6 billion
9)      Kumar Birla; $9.2 billion
10)     Sunil Mittal; $7.8 billion

India ratifies a global treaty to phase out mercury products


India will have to phase out mercury within six to 10 years as the country has ratified a global treaty - Minamata Convention - which makes it mandatory for the signatories to ban the use of the deadly nerve toxin in a phased manner.
The move will protect human health and the environment from the adverse effects of mercury which is currently being used in lighting and many healthcare products including clinical thermometers, blood pressure monitors and topical antiseptic agents.
Though the Convention will ban the production, import and export of products that contain mercury by 2020, it will allow its use in certain critical areas, specifically healthcare, for the next four years.
In the meantime, the countries who signed the Convention will be encouraged to gradually reduce their use of mercury by adopting alternatives.
India ratified the global treat on the sidelines of the UN general assembly in New York on Wednesday. The Convention gives the countries another 15 years to end all mercury mining.
The treat has been named after a Japanese city - Minamata - that had witnessed one of the worst incidents of industrial poisoning by mercury in 1950s.

India and Russia discuss collaboration in scientific education and economic growth


Mr. Alexander Povalko, Vice-Minister of Education and Science & Technology in the Government of Russian Federation called on Dr. Jitendra Singh, Union Minister of State (Independent Charge) for Science & Technology and Earth Sciences, MoS in Prime Minister`s Office (PMO), Personnel, Public Grievances and Pensions, Space and Atomic Energy, here today and discussed various areas where India and Russia could collaborate for scientific education and economic growth.

Dr. Jitendra Singh pointed out that five areas had been identified where India-Russia collaboration could prove effective and fruitful. These included Bio-Medical Sciences, Nuclear Power, Information & Technology, Energy Efficiency and Aerospace, he added.

Dr. Jitendra Singh also said that not only the two countries have shared a traditionally healthy relationship ever-since independence and a reflection of this is seen even in the areas of Science including Medical science. There have been a number of programmes in which the students from two countries have availed of the educational facilities.

With the successful launch of Mars Orbiter Mission (MOM) on September 24, Dr Jitendra Singh said, India has also joined the august Space Group, of which Russia is also a member along with USA and Europe and this adds yet another dimension to the potential cooperation between the two countries in the area of Science & Technology. Dr. Jitendra Singh also referred to Prime Minister Shri Narendra Modi’s “Make in India” programme launched today and said that this will certainly attract friendly nations like Russia to explore the possibilities of cost effective manufacturing and export from India.

Dr. Jitendra Singh said that India has a huge infrastructure in areas of Bio-medical Sciences, particularly, genomes and stem-cell, and Russian scholars will have an ample opportunity to avail of this. Any future research will prove viable and sustainable only if it has practical applications and generates economy, he said.

The Russian Minister expressed his agreement with the suggestions put forth by his Indian counter-part and said that Russia would be happy to develop joint India-Russia Science & Technology centres and work for methods of technology transfer between the two countries. He also offered to invite Indian scholars to avail of the services of newly set up Skoltech University near Moscow

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