The Greek crisis and an imperfect EU

The IMF and Germany’s response to Greece’s social crisis has set in motion political responses that could have long lasting impact on big power equations within Europe and beyond. In Greece, it is the IMF and Europe’s regional financial institutions that have been found wanting

The European Union (EU) was never a union. Greece has called the bluff. At the heart of the economic crisis in the EU is a political failure. The inability, indeed the unwillingness, of the member nations of the “Union” to move beyond a single market and a monetary union to create a political entity. The economic crisis in Greece is a manifestation of that political failure across the EU. National politics have worsted regional economics.

Imagine an India in which a less developed State was on the verge of default and neither New Delhi nor any of the more developed States were willing to step in and help. The success of the Indian Union rests on the fact that the developed regions of the country, and the Union government, have taken upon themselves the responsibility of offering a safety net to the less developed regions. All federal systems and continental nations are built on this foundation of regional interdependence and mutual support facilitated by federal political systems.

A commentary on EU

The failure of the EU’s more developed nations, especially Germany, to provide such a safety net to a less developed one like Greece has brought the EU to the brink of unravelling. This situation has been long in making.

The distance between Brussels, Berlin and Athens was brought home to me 20 summers ago when I opted for Athens as a destination for my travels as a guest of the European Union Visitors Programme (EUVP). The head of the Delegation of the EU in Delhi at the time, a French diplomat, suggested politely that I drop Athens and opt for Paris instead. The EUVP invitee was allowed to visit two European capitals of choice apart from the visit to Brussels. Berlin and Paris are the heart of Europe, she told me. Why waste time visiting Athens?

Since I had been to Paris many times and never to Greece, I insisted on Athens. When the ambassador of Greece to India found out that I was under pressure to visit Paris rather than Athens, he threw a mighty fit causing a diplomatic brouhaha in Brussels. Two decades later, the relationship between Europe’s major powers and its peripheral nations has not changed much.

Germany has behaved much in the same way that developed States in India like to when it comes to the question of transferring funds to less developed States. The former usually sermonise the latter on the virtues of industriousness and hard work and blame them for their backwardness. The latter demand all manner of special assistance. The Indian union has the political instruments to deal with such issues. The EU doesn’t.

Through the 1990s and well into the 2000s, EU enthusiasts from various European, especially German, think tanks would often lecture Indians about the virtues of regional cooperation and hold up the EU as an example for South Asia to emulate. The fact is that long before the EU tried its experiment with unification, India did. The reason why India stuck together and the EU is now facing the prospect of “Grexit” and “Brexit” (the exit of Greece and Britain) is because the Indian Union became not just an economic and political union but adopted the principle of federal financing administered by a democratically elected Union government.

The absence of such a principle of internal safety net for an imploding economy, and the weakness of the EU’s political institutions, has brought the EU to this brink. How the citizens of Greece would view their future and how much importance they attach to their membership of the EU to safeguard their future will be determined this weekend when Greece conducts a referendum.

Future of Europe

Two exogenous factors have come to shape the Western response to an unfolding Greek tragedy. First, the rise of Germany as a geoeconomic power and, second, the return of Russia as a geopolitical player. Over the years, a more economically successful and prosperous Germany has asserted itself, projecting its post-war “geoeconomic’” power to acquire political influence. The eastward expansion of the EU has further facilitated this.

Germany’s ascendance within Europe was shaped by two additional factors. First, the relative decline of other European economies, especially the economies of southern Europe.

Second, the induction into the EU of several east and north European economies worried about the resurgence of Russia as a geopolitical player. Russian President Vladimir Putin’s aggressive leadership has sent a shiver down Europe’s spine and many of East Europe’s smaller nations.

Germany and multipolar world

While southern Europe, including Italy, worries more about growing German assertiveness within Europe, northern and eastern Europe worry about a re-assertive Russia. It is against this background that Greece’s nationalist and Leftwing leadership reached out to Russia for help and Mr. Putin was quite happy to step into Europe’s troubled waters. Indeed, the fact that Greek voters opted for a Leftwing leadership has added a new dimension to the resolution of the crisis, given concerns in Germany and the United States about rising left-wing and right-wing forces in Europe and the decline in the influence of centrist political parties. Therefore, the stakes are high. The crisis in Greece is not just about sovereign default. It is about the future of Europe.

There is an interesting parallel between the Asian financial crisis of the late 1990s and the European crisis today. In 1997-98, when Indonesia, South Korea and Thailand faced a payments and debt crisis, it was the political fallout of that crisis, and the failure of the International Monetary Fund (IMF) to help the economies in trouble, that altered Asian geopolitics. While the IMF sermonised Korea and dictated to Indonesia, China stepped in and bailed out Thailand. The IMF has not been able to return to Asia since, while China has set up its own regional financial institutions.

Russia does not have the deep pockets to be a China to beleaguered Greece, but the IMF and Germany’s myopic policy response to Greece’s social crisis has set in motion political responses that could have similar long lasting impact on big power equations within Europe and beyond. In Greece it is not just the IMF but also Europe’s own regional financial institutions that have been found wanting.

Germany, it would appear, would not mind the exit of Greece, and maybe even Italy, because it has acquired a more loyal hinterland to its east. This could well mark the beginning of a new “Pax Germanica”. The crisis in Europe is also a test for the U.S. Having fathered the post-war trans-Atlantic order, the U.S. is unable or unwilling to step in and preserve the EU in its present form.

When the dust settles in Europe the emerging multipolar world will come to stay. If the Asian financial crisis consolidated Chinese power in Asia, the European financial crisis will consolidate German, and perhaps Russian, power in Europe. Economic crises do have geopolitical consequences.

Developed economy risk

The crisis in Greece does not in itself pose an economic risk for Indian investors and traders, but a Europe-wide crisis would. Even as the Indian economy begins to recover from the consequences of India’s own bad policies it may face the risk of dealing with those of Europe. There may be some business opportunities for Indian investors arising out of the decline in asset valuations in Europe, but caution would be the better part of valour.

Over the past five years, there has been a flight of capital from India to Europe. Many Indian companies have found investing in Europe a better proposition than investing at home. What the Greek crisis shows is that even in developed market economies there can be government failure, if not market failure. Indian businesses that seek foreign markets and external investment opportunities must invest more in understanding the nature of political risk around the world. Far too many analysts have worried about “emerging market risk” to have bothered about “developed economies’ risk”. This now deserves attention.

What the Greek crisis also brings home to Indian policymakers is the importance of responsible economic management at home and the need for creating multiple interdependencies externally. Greece’s weakness is that few in the world worry about its economy capsizing. India was in that spot in 1990-91 and, mercifully, is no longer in that worrisome place. But the debate on the extent of global interdependency that India should create and maintain continues. The lesson from Greece is not that a country should isolate itself from the global economy but that it should carefully manage its relations with the regional and world economy.

read about greek crisis
http://www.nytimes.com/interactive/2015/business/international/greece-debt-crisis-euro.html?_r=0

A new multilateral institution

The launch of the $100-billion Asian Infrastructure Investment Bank, within two years of its conception, signals the arrival of a new multilateral institution on the world stage. It also represents a challenge to the older such institutions. Mooted by Chinese President Xi Jinping in October 2013, the AIIB took shape with 50 members, including Australia, India, Russia and the United Kingdom. The articles of agreement were initialled at a gathering in Beijing of representatives of the 57 founding-members. The remaining seven are likely to sign in by the end of the year. China will be the largest shareholder (at 30.34 per cent), followed by India (8.52 per cent) and Russia (6.66 per cent). Though one among the Asian giants, Japan has chosen to stay out of the Beijing-initiated AIIB. The Philippines, which has territorial issues with Beijing in the South China Sea, has held itself back from signing, for now. And Indonesia has sought to have the bank housed in Jakarta. These spell geopolitical roadblocks to the success of the China-led initiative, which in a way is meant to counter the purported bias among existing multilateral institutions, that are perceived to be driven largely by the diktats of the U.S. and Europe. Indeed, the AIIB is a culmination of China’s incessant articulation of the concerns of the emerging economies, which felt they were not being given an adequate say in institutions such as the International Monetary Fund and the World Bank. Again, the AIIB is the consequence of the inability of these institutions to undergo change to suit changing times.

It is also essential to see the AIIB and China’s ambitious plans for the ‘Belt and Road’ project as being complementary. The AIIB as envisaged by China is clearly meant to use its financial resources and surplus to invest in projects in the Asian neighbourhood, which is suffering from a massive infrastructure funding gap. The infrastructure projects in the neighbourhood, nevertheless, are a way of allowing Chinese companies (among others) to participate and invest in them at a time when there is a situation of industrial overcapacity. The participation of many countries from Europe and elsewhere in the AIIB attests to their understanding of the potential of the projects for which the investments could be used, especially the Belt and Road schemes. India’s participation in the AIIB, too, indicates that New Delhi is keen on a balancing act to suit its interests – to engage with the West and the dominant international finance order, at the same time exploring options with new financial institutions. This is a prudent strategy. Will the AIIB be different from the likes of the IMF and the World Bank? That will depend largely on how Beijing manages the cooperation game.

PM's remarks at the launch of #DigitalIndiaweek

Text of PM's remarks at the launch of Digital India week

मंच पर विराजमान मंत्रि परिषद के मेरे सभी साथी, उद्योग जगत के सभी मित्र भिन्‍न भिन्‍न देशों के सभी राजदूत और बहुत बड़ी संख्‍या में पधारे हुए नौजवान दोस्‍तों,

मैं श्रीमान रविशंकर प्रसाद और उनकी टीम को ह्दय से बहुत बहुत अभिनंदन करता हूं बधाई देता हूं कि उन्‍होंने comprehensive integrated approach के साथ भारत के भविष्‍य को बदलने का एक खाका खींचा है और जिस बारीकी से सारी योजनाओं की रचना की है, मुझे विश्‍वास है कि करोड़ों देशवासी जिन सपनो को संजो रहे हैं वे सपने साकार हो कर रहेंगे।

उद्योग जगत के कुछ मित्रों को यहां मंच पर, डिजिटल इंडिया के संदर्भ में वे क्‍या सोचते हैं वे क्‍या कर सकते हैं के विचार हमे सुनने को मिले। हमारे रविशंकरप्रसाद जी हिसाब लगा रहे थे बैठे बैठे, कि वो क्‍या बोल रहे हैं और उन्‍होंने मुझे बताया है कि करीब करीब साढे चार लाख करोड़ रूपये का investment.. और करीब करीब 18 लाख लोगों को रोजगार.. और यह तो जो ऊपर बैठे हैं उन्‍होंने बताया हैं और नीचे बहु‍त बड़ी मात्रा में बैठे हैं.. उनका अभी सुनना बाकी है। यहां बहुत बड़ी मात्रा में इस क्षेत्र में पहले से ही काम करने वाले उद्योग जगत के मित्र बैठे हैं।

वक्‍त बहुत तेजी से बदल चुका है। पहले हम लोग कभी किसी परिवार में जाते थे और छोटे बच्‍चे से बात करते थे तो बच्‍चा क्‍या करता था? अगर आपका चश्‍मा है तो खींच के ले जाता था या आपकी जेब में पेन है तो उसको उठाता था। लेकिन आज आप मार्क करना कि वह न चश्‍मे को हाथ लगाता है न पेन को हाथ लगाता है वह आपका मोबाइल फोन छीनता है। मोबाईल फोन हाथ में आते ही ठीक से पकड़ता है, आप मार्क करना.. और अपना शुरू कर देता है और अगर, जैसा चाहे वैसा आपरेशन नहीं होता तो रोने लगता है यानी बाकी वह कुछ समझे या ना समझे डिजिटल ताकत को समझता है। समय की मांग है कि हम इस बदलाव को समझें और अगर हम इस बदलाव को नहीं समझेंगे तो हम कहीं पड़ रहेंगे कोने में दुनिया दूर चली जाएगी और हम देखते ही रह जायेंगे एक समय था कि सदियों पहले लोग बसते थे, नदी के तट पर। गांव बसते थे, शहर बसते थे नदी के तट पर या समुंदर के किनारे पर।

वक्‍त बदल गया बाद में जहां जहां से हाइवे गुजरते थे, शहर वहां बसना शुरू हुए लेकिन अब मानव जा‍ति वहीं पर बसेगी जहां से ऑप्टिकल फाइबर गुजरता होगा। ये बहुत बड़ा बदलाव आया है और इसलिए अगर विश्‍व के अंदर सवा सौ करोड़ का देश, अपनी ताकत का अहसास कराना चाहता है तो जो हजारो साल पुरानी महान संस्‍कति है.. हम सवा सौ करोड़ देश वासी हैं, हम 65 प्रतिशत 35 साल से कम उम्र के हैं, ये गीत गाने से बात बनने वाली नहीं है। ये जो भी विरासत है, जो सामर्थ्‍य है, उसके साथ आधुनिक विज्ञान को, आधुनिक टेक्‍नॉलॉजी को जोड़ना अनिवार्य है। अगर demographic dividend.. इसको अगर digital strength नहीं मिलेगी तो ये demographic dividend ..हम global level पर जितनी मात्रा में फायदा उठाना चाहिए नहीं उठा पायेंगे। इसलिए देश को तैयार करने की आवश्‍यकता है। आज हमारे देश में करीब करीब 25 करोड़-तीस करोड़ internet users हैं। users की संख्‍या में तो दुनिया में ये संख्‍या बहुत बड़ी है लेकिन जो इससे वंचित है वो संख्‍या भी दुनिया के हिसाब से बड़ी है। जिनकी अपनी पहुंच थी जिनकी अपनी ताकत थी जो खुद कर सकता था, जिसको ज़रूरत थी, उन्‍होंने तो अपना कर लिया। लेकिन जो खुद नहीं कर सकता है, उसको उसके नसीब पर छोड़ देना चाहिए क्‍या? देश का एक तबका.. वो तो Digital world के साथ बहुत तेज गति से आगे बढ़ता हो और देश का बहुत बड़ा तबका उससे वंचित रह जाए तो जो अमीर और गरीब की खाई के कारण समस्‍याएं पैदा होती हैं, शहर और गांव में सुविधा के कारण जो खाई पैदा होती है, उससे भंयकर स्थिति Digital Divide के कारण पैदा हो सकती है।

इसलिए यह हमारा दायितव बनता है, हमारी जिम्‍मेवारी बनती है कि हम इस आधुनिक विज्ञान, जो कि मानव की आवश्‍यकताओं की पूर्ति का एक बहुत बड़ा catalyst agent बना हुआ है, उससे गरीब से गरीब भी वंचित नहीं रहना चाहिए। यह सुविधा जब तक हम गांव, गरीब, किसान तक नहीं पहुंचाएंगे तो यह विकास की जो बातें हैं, न वो उसका लाभ उठा पाएगा, न हम उसको सेवा दे पाएंगे। इसलिए इस चुनौती को हमने स्‍वीकार किया है कि आने वाले वर्षों में, दूर-सुदूर गांव में भी गरीब से गरीब व्‍यक्ति को भी इस platform को उपलब्‍ध कराना चाहिए, जिस platform से वो अपनी आवश्‍यकताओं की पूर्ति का माध्‍यम..आवश्‍यकता के अनुसार उपयोग करता रहे। दुनिया जिस प्रकार से बदल रही है, आपने देखा होगा आपको घर में.. मान लीजिए कभी तय करें कि चलो भई किसी restaurant में आज अच्‍छा खाने जाना है, परिवार के चार लोग बैठकर के चर्चा करें कि कहां जाएंगे और आपका 15-16 साल का बच्‍चा है, वो सुनता है, तो वो क्‍या करता है.. तुरंत वो Google गुरू के पास जाता है। Google गुरू से पूछता है कि नजदीक में अच्‍छे से अच्‍छा restaurant कौन सा है, अच्‍छे से अच्‍छा menu कौन सा है? और वो table पर वहां बैठे बैठे बुक करा देता है। यह इतना बड़ा बदलाव है, इस बदलाव को समझते हुए हमने भी अपनी व्‍यवस्‍थाओं को विकसित करना चाहिए। minimum government maximum governance, इस सपने को साकार करने में technology बहुत बड़ा रोल प्‍ले करती है। e-governance, सामान्‍य मानव की.. जो शासकीय सेवाओं में उसका हक है, उसको प्राप्‍त करने के लिए उत्‍तम से उत्‍तम मार्ग है। e-governance बहुत ही तेजी से m-governanceमें बदलने वाला है। ‘m’ does not mean Modi Governance, it is mobile governance. सारा कारोबार, सारी आवश्‍यकतांए, सारी व्‍यवस्‍थाएं मोबाइल फोन के ईद-गिर्द.. पूरी सरकार आपके मोबाइल फोन में मौजूद होने वाली है, वो दिन दूर नहीं है।

लेकिन इसके लिए हमें अपने आप को सजग करना होगा, व्‍यवस्‍थाएं विकसित करनी होगी। e-governance easy governance, is economical governance.. आर्थिक रूप से अनुकुल यह governance.. और उसको हम जितना बल दे सकें, हमें उसको बल देना है। उसी प्रकार से हमारे सामने समस्‍या रहती है, सरकार में, एक ही काम के लिए इतनी multiple activity करनी पड़ती है, इतना समय बर्बाद होता है। आधुनिक विज्ञान के माध्‍यम से conversion इतना सरल होता है.. और जैसा अभी आपको presentation में बताया कि आज सरकार में 10 जगह पर 10 काम हैं तो सारे certificate दस जगह पर देने पड़ते हैं। अब वो सारी मुसीबत चली जाएगी। जब व्‍यवस्‍थाएं खड़ी हो जाएंगी तो आपके एक Digital number से उसको सारी चीजें उपलब्‍ध हो जाएंगी और कारोबार आगे चलता चला जाएगा। आने वाले दिनों में.. आज हम चर्चा करते हैं कि बच्‍चों को इतना बोझ उठाकर के स्‍कूल जाना पड़ता है। उनके बक्‍से में उनके वजन से ज्‍यादा किताबों का वजन होता है। इन बालकों की समस्‍या का समाधान भी Digital India में है। सारा syllabus एक छोटे से equipment में वो अपने साथ लेकर के घूम सकता है। इसलिए कुछ लोग, ऐसी जब बात होती है तो उनको लगता है कि यह तो बड़ा elite class के लिए काम है, बड़े लोगों के लिए काम है.. हकीकत नहीं है।

जब satellite छोड़े जाते थे, आज से कुछ वर्षों पहले, तो कुछ लोग डिबेट करते थे कि भारत जैसा गरीब देश! यह satellite किस के लिए छोड़े जा रहे हैं! क्‍या उपयोग है! लेकिन आज वही satellite, weather forecast अगर सही ढंग से करता है तो सीधा-सीधा फायदा गरीब किसान को होता है। जब खर्चा करते हैं तो आलोचना होती है लेकिन वही बाद में मानव की आवश्‍यकताओं की पूर्ति करता है। यह सारी योजनाएं जो आपने देखीं.. अब देखिए आज, तो बैंक में जाना वगैरह सब है लेकिन वो दिन अब दूर नहीं है कि बैंक पेपर लेस होने वाला है, बैंक premises less होने वाला है। पूरा बैंकिंग कारोबार आपके मोबाइल फोन से चलने वाला है।

यह जो बदलाव आ रहा है, इस बदलाव के लिए हमें अपने आप को सजग करना चाहिए कि नहीं करना चाहिए। अगर हम देखें तो हम 19वीं शताब्‍दी से.. तब से इन कामों को तेज गति से आगे बढ़ाने की आवश्‍यकता थी। जब दुनिया ने Industrial revolution देखा, हम पिछड़ गए, क्‍यों? क्‍योंकि हम गुलाम थे। औद्योगिक क्रांति का हमें लाभ नहीं मिला। लेकिन आज जब IT revolution आया, हम आजाद हैं, हम youthful nation हैं और हमारे पास talent है। जहां तक IT की बात होगी, दुनिया हिंदुस्‍तान का लोहा मानती है। हमें यह मौका गंवाना नहीं है। गुलामी के कालखंड में हमने जो मौका गंवाया, यह मौका हमें IT revolution में गंवाना नहीं है। इसके सामने कुछ और चीजों पर भी बल देने की आवश्‍यकता है। Petroleum Import की हमारी मजबूरी है, ऊर्जा की आवश्‍कयता है, जरूरत पड़ती है, हमारे पास source कम है, लाना पड़ता है। लेकिन यह बात गले नहीं उतरती है कि हिंदुस्‍तान का second highest import electronic goods हैं। क्‍या यह देश, जहां पर इतने IT Professionals हो, जहां इतनी बड़ी मात्रा में उद्योगकार हों.. और कोई इतनी बड़ी technology भी नहीं है। क्‍या हम हमारे देश में electronic goods इतनी बड़ी मात्रा में न बना पाएं कि जो qualitatively globally competitive हों, और भारत का बना हुआ हो ताकि भारत को कभी बाहर से import न करना पड़े।

Digital India के माध्‍यम से हम electronic good को हिंदुस्‍तान में manufacture करने की दिशा में आगे बढ़ सकते हैं। हम देश के उद्योग जगत को निमंत्रित करना चाहते हैं। मैं नौजवानों को भी, start-up के लिए जो मदद चाहिए, सरकार देने के लिए तैयार है। और आज दुनिया में start-up की दिशा में हिंदुस्‍तान के नौजवानों की संख्‍या बहुत बड़ी मात्रा में है। आने वाले दिनों में शायद अमेरिका के बाद हम नंबर दो पर आ जाएंगे, start-up के लिए। लेकिन इसे और बढ़ाना है। मैं देश के नौजवानों को भी चुनौती देता हूं, अगर IT Professional हमारे हैं, दुनिया के IT कंपनियों में ढेर सारी मात्रा में भारतीय मूल के लोग नजर आते हैं, लेकिन क्‍या कारण है कि Google का innovation हमारे यहां नहीं होता है। क्‍या कारण है कि innovation बाहर होते हैं। Digital India के माध्‍यम से हम देश के नौजवानों कोinnovations के लिए आह्वान कर रहे हैं, कि आप आइए, इस चुनौती को स्‍वीकार कीजिए।

भारत जैसे देश को सबसे पहली आवश्‍यकता है.. जैसे Make in India का महत्‍व है, वैसे ही Design in India भी उतना ही महत्‍वपूर्ण है। हमारे देश के नागरिकों की रूचि, प्रकृति, प्रवृति के अनुसार हमारा प्रोडक्‍ट तैयार हो। वो जिस भाषा में समझता है, उस भाषा में प्रोडक्‍ट तैयार है। जिस age group को address करना है, उसकी आवश्‍यकता है के अनुसार प्रोडक्‍ट तैयार हो। सवा सौ करोड़ देशवासियों का बाजार है। हमारे देश के नौजवान अपने talent का उपयोग करते हुए, innovations को ध्‍यान में रखते हुए Design in India.. इस concept को पकड़ते हुए Digital India के अंदर नई ताकत, नए प्राण भर सकते हैं.. और उसको बल देने के लिए मैं देश के नौजवानों का आह्वान करता हूं। विश्‍व की ओर नजर करें, मैं मानता हूं कि भारत को एक बहुत बड़ी जिम्‍मेवारी अदा करने का समय आ गया है। हम देख सकते हैं कि दुनिया में रक्‍तविहीन युद्ध.. और मैं बहुत जिम्‍मेवारी के साथ बोल रहा हूं, रक्‍तविहीन युद्ध के बादल मंडरा रहे हैं। इस रक्‍तविहीन युद्ध के जब बादल मंडरा रहे हैं तो ऐसे में सुख-चैन की जिंदगी जी सके, क्‍या भारत इसका नेतृत्‍व कर सकता है कि नहीं कर सकता है?विश्‍व को सुख-चैन की जिंदगी जीने के लिए रक्‍तहीन युद्ध से सुरक्षा देने के लिए क्‍या भारत का talent काम आ सकता है कि नहीं आ सकता है? मैं जो रक्‍तहीन युद्ध की बात करता हूं, वो मु्द्दा है – cyber security का, उस पर हम बल देना चाहते हैं। और आज जब हम इस Digital India को launch कर रहे हैं तब उनको सपनों को साकार करने का हमारा प्रयास है तब मैं जरूर कहना चाहूंगा...

I dream of a DIGITAL INDIA where:

High-speed Digital Highways unite the Nation

एक जमाना था Highways के लिए मांग होती थीअब अकेले Highways से चलने वाला नहीं है। Highways भी चाहिए और information Highways भी चाहिए

I dream of a DIGITAL INDIA where: 1.2 billion Connected Indians drive Innovation

I dream of a DIGITAL INDIA where: Knowledge is strength – and empowers the People

I dream of a DIGITAL INDIA where: Access to Information knows no barriers

I dream of a DIGITAL INDIA where: Government is Open - and Governance Transparent...और मैं जब कह रहा हूं भ्रष्‍टाचार के खिलाफ लड़ाई लड़ने में technology बहुत बड़ी मदद कर सकती है। सारे लीकेजेस को रोका जा सकता है। हमने जो अभी कोयले का auction किया सारा Digital platform का उपयोग किया था। अनेक खादानों का auction हुआ, लाखों करोड़ों का काम हुआ, लेकिन यह सरकार पर एक भी इल्‍जाम नहीं लगा। क्‍यों, क्‍योंकि हमने इस Digital platform का उपयोग किया, सम्‍पूर्ण रूप से transparency पर हमने बल दिया। और इसलिए भ्रष्‍टाचार को रोकने के लिए भी information and communication technology एक बहुत बड़ा instrument के रूप में उपयोग किया जा सकता है।

I dream of a DIGITAL INDIA where: Technology ensures the Citizen-Government Interface is Incorruptible

I dream of a DIGITAL INDIA where: Government Services are easily and efficiently available to citizens on Mobile devices

I dream of a DIGITAL INDIA where: Government proactively engages with the people through Social Media

I dream of a DIGITAL INDIA where: Quality Education reaches the most inaccessible corners driven by Digital Learning

I dream of a DIGITAL INDIA where: Quality Healthcare percolates right up to the remotest regions powered by e-Healthcare

I dream of a DIGITAL INDIA where: Farmers are empowered with Real-time Information to be connected with Global Markets

I dream of a DIGITAL INDIA where: Mobile enabled Emergency Services ensure Personal Security

I dream of a DIGITAL INDIA where: Cyber Security becomes an integral part of our National Security

I dream of a DIGITAL INDIA where: Mobile and e-Banking ensures Financial Inclusion

I dream of a DIGITAL INDIA where: e-Commerce drives Entrepreneurship

I dream of a DIGITAL INDIA where: the World looks to India for the next Big Idea

I dream of a DIGITAL INDIA where: the Netizen is an Empowered Citizen

Vision and The Nine Pillars of ‪#‎DigitalIndia‬ Digital India

No reason for IIMs to be alarmed

ttempts by successive governments to inject a modicum of accountability into the Institutes have been construed as threats to autonomy, but this is not the case

The Indian Institutes of Management Bill, placed for comments in the public domain until recently, intends to bring the IIMs under an Act of Parliament. An IIM Act would enable the IIMs to confer degrees, instead of diplomas and fellowships. The leading IIMs are up in arms against the Bill. One wonders what the fuss is all about.

The framework that the Bill intends for the IIMs is more liberal than the IITs Act. For instance, the Bill intends only a Coordination Forum for the IIMs, unlike the IIT Council which has powers of policy-making and oversight. The IITs have a higher standing globally than the IIMs. Admissions, curricula and faculty recruitment at the IITs have all remained free from government interference. If the IIT Act has not cramped the IITs, why should we believe that the proposed IIM Act would erode the autonomy of IIMs?

The issue here is what the leading IIMs mean by autonomy. These IIMs have long taken the position that what they need is not just academic autonomy (which they have always had) but financial and operational autonomy. Since the early 2000s, they have enjoyed financial autonomy as well, meaning they are self-supporting. They now demand operational autonomy.

The expression ‘operational autonomy’, as used by the IIMs, is rather misleading. It’s not just the freedom to implement policies, as the expression would seem to connote. It includes the framing of policies, including those related to matters of governance. The leading IIMs have long contended that all appointments and decisions related to the institutes should be left to their boards of governors.

They would like the chairperson, board members (other than the government nominees) and the director to be all selected by the board. Faculty compensation too should be set by the board. The government should have no say on the fee structure. Defining the powers and responsibilities of the director should be left to the board. And so on. The government’s role, these IIMs believe, should be confined to setting broad objectives and ensuring that these objectives are met.

The IITs do not have these privileges. Nor were these privileges intended for the IIMs in the memorandum of association under which they are governed. In 2004, V.K. Shunglu, a former Comptroller and Auditor General, submitted a report on the finances of the IIMs. In his report, he remarks caustically, “IIM (Ahmedabad) continues to implicitly assume authority it arguably does not possess and explicitly seeks autonomy and ownership which does not emerge from the Articles of Association.” Leaving aside the legal position, how appropriate are the IIMs’ demands? The question is best answered by addressing three issues. What are the conditions, in general, for boards to be effective? How are public universities in the U.S. and elsewhere governed? What has been the track record of the leading IIMs on matters of governance?

Boards do not become effective because they are composed of wise men and women who will offer sage counsel. They are effective when they are held to account. In the corporate world, three conditions must be met for boards to be effective. There must be competition in the market, and large or dominant investors who monitor performance closely. The financial markets must be efficient. Even where these conditions are met in large measure, boards are seen to be not effective enough.

American universities

Universities in the U.S. may not be subject to the discipline of financial markets but they certainly face fierce competition. There’s very little difference amongst the top 20 universities or, for that matter, amongst the top B-schools. Rankings and research output are closely monitored by the various stakeholders. Alumni are big donors and often sit on the boards of universities. As a result, boards are under pressure to deliver. Non-performing presidents and deans are shown the door.

“The IIMs have not had fixed tenures for board members, something that one would regard as a basic axiom of good governance”

The IIMs lack serious competition. The pecking order amongst the IIMs themselves has hardly changed over a very long period. Board members, including the chairperson, come and go and have little stake in the institutions. IIM boards have not set performance norms for directors. Under these conditions, it’s unrealistic to expect that the boards can enforce accountability. It’s important for the dominant stakeholder and promoter, namely, the Government of India, to keep a watch. This will require monitoring of decisions, not just outcomes. It will be especially required if the IIMs come to be covered by an Act of Parliament as the government itself is accountable to Parliament.

Although American higher education is dominated by private, non-profit universities, there are also State universities of the highest quality. How are they governed? Well, California has one of the best State systems in higher education. The board of governors at California — called the Board of Regents — has 26 members, of whom seven (including the governor of the State) are ex-officio members. The governor appoints 18 members. The board appoints one student as Regent. At Texas, the nine-member board is likewise appointed by the governor. These highly regarded universities don’t bleat about any threat to their autonomy.

The functioning of the IIM boards itself has left much to be desired. In September 2008, a committee headed by R.C. Bhargava made scathing observations on IIM boards. It said, “Board agendas are filled with routine administrative approval requests…only rarely do boards discuss strategy and prepare any long-term plans.” Even today, murmurings are heard in the IIM system about the perfunctory nature of board meetings.

Shortcomings

The government has had to step in to fix serious shortcomings in governance in the IIM system. For decades, some of the IIMs had outsized boards with some 25 members. The government had to persuade the IIMs to prune their boards to a more compact number of around 15 (and even this was construed as a threat to autonomy!). IIMA has not thought it necessary to change its statutory auditors for 50 years; the IIM Bill now has a sensible provision for rotating the statutory auditor every four years.

The IIMs have not had fixed tenures for board members, something that one would regard as a basic axiom of good governance; the IIM Bill limits the terms of board members to a maximum of six years. In 2012, the five-person committee constituted by the IIMA board to select a director did not have a single academic on it; it was composed entirely of people from the corporate world. The IIM Bill wisely mandates a desirable composition of the selection committee.

There has never been any threat to the autonomy of the IIMs. It’s the attempts of successive governments to inject a modicum of accountability that have been construed as threats to autonomy. There are provisions in the IIM Bill that, perhaps, require discussion — for instance, the provision that states that all regulations made by the IIM boards require the prior approval of the government. However, the IIMs can hardly contest the basic thrust of the Bill, namely, to put in place transparent processes and clear norms for accountability in the system.

The woes of Greece

As financial markets worldwide tumbled over concerns that Greece would default on its debt to the troika comprising the European Commission, the European Central Bank and the International Monetary Fund, the people of Greece were being presented with a Hobson’s choice by its government led by the leftist party platform, Syriza. In the midst of intense negotiations with representatives of the troika over rolling over debt payments, the Syriza government sought to extend the deadline for payments in order to allow it to put the conditionalities of the troika for a bailout extension to a referendum vote. Prime Minister Alexis Tsipras has denied that this referendum, scheduled for July 5, is on whether or not to continue within the eurozone; he says it is only on the acceptance of the troika’s demands. But with the troika unrelenting on the June 30 deadline for repayment of debts to the IMF, and Greece being in no position to pay, the referendum could more or less be on remaining in the eurozone. This presents a difficult choice for the people of Greece. After all, the Syriza was voted to power in January 2015 precisely on the promise of halting the programme of austerity imposed by creditors that has resulted in a drastic contraction of Greece’s economy and increase in unemployment. Yet, the mandate was also for negotiations to remain within the eurozone as Greek voters had realised that the Grexit would mean too much pain (at least in the near term) due to capital flight, a run on the banks and other troubles in returning to the drachma as currency.

Over the past five months, Syriza representatives, true to their mandate, have sought to alter Greece’s terms of engagement with its creditors, seeking debt relief that would allow fiscal expansionary policies to spur the economy. Yet, the troika’s response has been to stonewall the proposals and instead push Greece to further the austerity measures it has pursued following the first major bailout in 2010 andanother in 2012. The troika’s reasoning is simple: tolerating a Greek default would amount to sending signals to other creditor-nations about similar leniency. Instead, the troika has merely offered a five-month extension of Greece’s bailout programme with fresh funds but with persisting austerity conditions. With barely a concession to the Greek position, there remains a wide gap between the Greek people’s expectations and the EU recommendations. With Greece already having to impose capital controls and bank holidays to avoid further capital flight — measures that were supposed to be taken in the event of an exit from the EU — it begs the question whether the Grexit is inevitable.

Essay on Needed, a new urban vision

Dear
 candidate write an essay  in about 1000 words on

• "India's cities needed a new urban vision"

Rs two lakh crore investment likely to rain on urban areas in next five years for Smart cities and AMRUT plans

“India’s cities are among the greatest things we have”, Charles Correa , world-famous architect had said.He would have been more convinced about his perception after emergence of smart cities on India’s large canvas in near future. Alas! He is no more. Marathon exercises are underway to accomplish the much touted project ,being billed as a watershed initiative to give fillip to the growth agenda.

With an investment entailing Rs 48,000 crore from the Centre, 100 smart cities will be developed in next five years. Carrying forward his agenda of accelerated growth aimed at recasting the country’s urban swathes, Prime Minister Narendra Modi and his cabinet has approved spending of about one lakh crore on urban development under two new urban missions in next five years. The twin projects, which are being unfurled  June 25 this year, are the smart city mission and the Atal Mission for rejuvenation and urban transformation ( AMRUT ) of 500 cities with outlays of Rs. 48,000 crore and Rs.50,000 crore respectively.

 The smart cities mission seeks to ensure basic infrastructure services to enable a decent quality of life in urban pockets and a clean and sustainable environment and adoption of smart solutions. Officials claim smart cities mission seeks to fetch the benefits of urban development to the poor through promotion of public transportation and enhanced access to public spaces. The improved urban environment under the mission will give fillip to economic activity which in turn benefits the poor through increased employment and livelihood opportunities.

Urban population,according to 2011census, was about Rs 37 crore accounting for 31 per cent of total population . As per latest estimates,about 5.80 crore urban population are poor.Taking lessons from the implementation of Jawaharlal Nehru Urban Renewal Mission that was launched in 2005 and implemented till March 2014, when it was wound up by the previous government ,new initiatives have been formulated, sources say. US trade development agency (USTDA) signed MOU with the governments of Rajasthan and AP for assisting in making Allahabad, Ajmer and Visakhapatnam into smart cities.

Fourteen countries have expressed interest in building smart cities. These include : US, Japan, China,Singapore , Germany, France , Netherlands, Sweden , Israel,Turkey and Australia.  The improved urban environment under the mission will give fillip to economic activity which in turn benefits the poor through increased employment and livelihood opportunities

 Under the smart city mission ,each selected city would get central assistance of Rs.100 crore per annum for five years and each state will shortlist a certain number of smart city aspirants as per the norms. Smart city aspirants, say official sources, will be picked up through a transparent “city challenge competition intended to link financing with the potential of cities to perform to fully accomplish the well laid out objectives of the ambitious mission.''

States plan will be further evaluated for pumping of money from the Centre’s coffers.Sources made it clear that the smart city mission intends to promote adoption of smart solutions for efficient use of available assets, resources and infrastructure for improving quality of life. Thrust will be laid for participation of locals in prioritising and planning urban interventions. It will be implemented through areas based approach consisting of retrofitting, re-development, pan city initiatives and development of new cities.

A UNI correspondent, who visited a few areas in the Hindi heartland states recently, found that locals were calculating potential locations of smart cities and have started their own reckoning of hike in land prices in and around those areas.”It is not only money raking calculations, we are keen to have better urban life ,and future generations will not forgive us if the present rot of haphazard development was not arrested in a stipulated period.'' At some places,bets are on the potential sites of smart cities and locals were enthused. Informatively, a statutory town is one that has a municipal body. There are 4,041 statutory cities/ town as per 2011 records. Out of these, about 500 cites are with a population of above one lakh each are focus of AMRUT. These 500 cities account for 73 per cent of India’s population.

According to highly informed sources, number of cities that can be nominated for Smart city & AMRUT respectively so far are like this : A&N ( 1&1) ,Andhra Pradesh ( 3 &31),Arunachal Pradesh (1 &1), Assam( 1&7), Delhi( 1&1) ,Karnataka( 6 &27), Kerala( 1&18) , Uttar Pradesh ( 13 &54),WB ( 4&28) Maharashtra ( 10&37) etc. Official sources said under retrofitting, deficiencies in the identified area will be addressed through necessary interventions as in the case of local area plan for downtown Ahmedabad. Redevelopment enables reconstruction of already built up area that is not amenable to make it smart as in the case of Bhindi Bazar of Mumbai and West Kidwai Nagar in Delhi .

Pan city components could be interventions like intelligent transport solutions that benefit all residents by reducing commuting time. The smart city initiative planners have agenda for core infrastructure services like adequate and clean water supply, sanitation and solid waste management, efficient urban mobility and public transport ,affordable housing for the poor, power supply, robust IT connectivity, governance, especially e-governance, security and safety of inhabitants ,well developed health, education services besides sustainable urban development.

Official sources said Smart City action plans will be implemented through special purpose vehicles which will be created for each city and state governments will ensure steady stream of resources for SPVs.

Both Smart city mission and AMRUT are linked with an umbilical chord. AMRUT, entailing an investment

of Rs 50,000 crore, envisages proper infrastructure services relating to water supply,sewerage,septage management, storm water drains, transport and development of green spaces and parks with special plans of meeting needs of children.

The Mission inter alia aims at achieving urban reforms such as e-governance, building of professional municipal cadre,devolving funds and functions to urban local bodies, review of building bye laws, improvement in assessment and collection of municipal taxes, credit rating of urban local bodies,energy and water audit and citizen centric urban planning.

Sources said in order to push reforms, the government has also planned 10 per cent budget allocation will be given to states/ UTs as incentive based on achievement of reforms during the previous year. A reform matrix with timelines will be circulated to states in the guidelines.

The AMRUT Mission will be implemented in 500 cities and towns each with a population of one lakh and above. It will also be carried out in some cities situated on stems of main rivers, a few capital cities and important cities located in hilly areas, islands and tourist areas.

Unlike JNNURM, central government will appraise individual projects but states, sources said, get flexibility of designing schemes based on needs of identified cities and in their execution and monitoring. States will only submit state annual action plans to the Centre for broad concurrence based on which funds will be released .

Central assistance will be to the extent of 50 per cent of project cost for cities and towns with a population of ten lakh and one third of the project cost for those with a population of above ten lakhs.The funds will be released in three instalments in the ratio of 20:40: 20 based on achievement of milestones indicated in state annual action plans .

Sources said the government has already approved central funding under AMRUT to the projects sanctioned under JNNURM and not completed. JNNURM projects relating to the urban development sanctioned during 2005-2012 and achieved physical progress of fifty per cent availing 50 per cent central assistance released and those sanctioned during 2012-2014 will be supported till March 2017. Accordingly ,102 and 296 projects will get central support for balance funding to complete these projects.

Official sources say a minimum investment of over Rs two lakh crore would flow into urban areas over the next five years since states and urban local bodies would mobilise matching resources ranging 50 to 60 six per cent . In addition, substantial private investment would be mobilised by states and urban local bodies through PPP model as required to meet project costs.