26 October 2015

The theme for the Vigilance Awareness this year is “Preventive Vigilance as a tool of Good Governance”.

The Vigilance Awareness Week is being celebrated from 26th October to 31st October, 2015. The theme for the Vigilance Awareness this year is “Preventive Vigilance as a tool of Good Governance”. The Commission has been laying stress on Preventive Vigilance and driving home the point that vigilance should not be seen in isolation but as a tool to achieve good governance and better operational results. The Vigilance Awareness Week is being celebrated every year and coincides with the birthday of Sardar Vallabhbhai Patel, known to be a man of high integrity.
A press meet was organized by the Central Vigilance Commission in New Delhi today. Addressing the media persons, the Central Vigilance Commissioner, Shri K.V. Chowdary said that more emphasis should be given to ‘preventive vigilance’ than the ‘punitive vigilance’. The systems and processes should be set in place so as to generate alarm in case of anything happening beyond the prescribed processes. He said that it is important to bring changes in the system so that we can prevent such misconducts.
Commenting upon the delays and pendency of cases, he said that areas need to be identified where delays have happened and appropriate action should be taken to streamline the procedures and SOPs about the dealing of applications, their criteria and other related matters. Explaining the scope of corruption, he said that corruption is not only about giving money, but it includes all actions where processes are being compromised. He said that now the Chief Vigilance Officers (CVOs) have been made to access the pendency of cases pertaining to their organizations through the website of the Commission, thus speeding up the disposal of cases and reduction in pendency. The Commission can keep a tab on the log of the CVOs.
The prime focus of the Commission is to curb the pendency of cases. The number of cases pending sanction for prosecution (more than 4 months old) were 28 as on 30-06-2015 which were reduced to 15 as on 31.08.2015, thus coming down to half within 2 months.
He said that the purpose of Vigilance Awareness Week is to generate awareness in the public at large about the bad effects of corruption. He informed that this year then CVC is giving lectures at school and college levels. This will take the message of preventive vigilance to the young minds and they will be in a position to influence the society at large, he added. He said that the training of the Officers of the Commission and CVOs is being organized within the country and abroad for improving their skills and efficiency. Commission has, as a part of its knowledge management exercise, initiated a program to invite one eminent person every month to address its officers and all CVOs (through video conferencing) on a topic related to vigilance and improvement of governance.
He said that road ahead for the Commission is to analyse the suggestions received by the Commission from CVOs and public at large.
The CVC also appealed to the media to spread awareness on this issue among the public at large. He said that the Commission receives many complaints from the public at large every year. The awareness should be generated among the public so that the complaint is addressed to the appropriate authority and the action can be taken faster.
Giving emphasis on preventive vigilance, Shri T M Bhasin, Vigilance Commissioner said that prevention is better than cure. He said that investigative vigilance takes time and it also affects the morale of the employees, so preventive vigilance should be given prominence over the investigative vigilance. He said that the theme of Vigilance Awareness Week is not for a week only, but it will be for the next one year and is a part of its regular and dynamic process.
The observance of Vigilance Awareness Week will begin with taking of pledge on 26th October, 2015 at 11:00 AM in all the Government, Public Sector Organizations, Autonomous Organizations and Local Bodies.
Besides the regular activities of display of banners, posters, advertisements in the Newspapers and organization of activities such as lecture, panel discussions, competitions in Government and Public Sector Organizations, the Commission this year is reaching out to college and school students in a big way. Debates/Elocution/Lectures are being organized in 135 cities/towns spread across the country. CVOs of 101 organizations are involved in organizing these competitions and each CVO has been assigned certain number of cities/towns with the instruction to organize these competitions in at least 3 colleges and 2 schools. It is expected that competitions would be organized in more than 2000 colleges and schools. Activities are being organized across India in cities including Delhi, Chennai, Mumbai, Kolkata, Hyderabad, Bangalore, Pune, Vijayawada and Ahmedabad. The Hindi College, Lady Shri Ram College, St. Stephen’s College, IIT Delhi, JNU from Delhi; Anna University, SRM University from Chennai, NNIMS College from Mumbai, Birla Institute of Technology from Kolkata and Gujarat National Law University from Ahmedabad are among other educational institutions organizing activities during Vigilance Awareness Week.

Africa, the indispensable continent for India

Africa, the indispensable continent for India
The third India Africa Forum Summit (IAFS) in New Delhi this week, with over 40 African heads of governments and states attending, will be the biggest foreign policy event hosted by India in more than three decades. While this process was partly in response to initiatives by other emerging powers, particularly the Forum on China-Africa Cooperation launched in 2000, it was also a belated recognition that Africa was becoming an indispensable continent for India’s future—one that New Delhi can ignore at its own detriment.
Today, India and Africa matter to each other in at least four ways: First is the common historical experience of colonization and decolonization. Derived from that is the normative notion and principle of independent, sovereign states committed—at least in theory—to the liberal peace paradigm. This was evident in the historic soft power approach that promoted sovereignty, independence and support for the liberal model of development.
Second, following India’s economic liberalization from 1991 onwards, Africa has emerged and is likely to remain crucial for natural resources and developing markets. This is evident in the increasing trade, which in the past five years has grown six-fold to nearly $70 billion. India is now Africa’s fourth largest trading partner, though raw materials make up over 80% of Africa’s exports to India. Crude oil and gas have emerged as the leading exports to India, accounting for nearly two-thirds of all exports. The increase in India-Africa trade has also been a principal driver behind India’s evolving concept of development partnership cooperation and has been the key approach for engagement with Africa since 2003.
Third, Africa remains vital for India’s emergence as a global actor in the international institutional arena. Both India and Africa are keen to reform the existing global governance structures, especially the UN Security Council (UNSC), and shape the emerging global regimes, particularly those related to food, energy, climate, water, cyber and space. However, there are two challenges: first, neither India nor African nations have the capacity to shape these regimes on their own; they will have to work together. Second, on many issues, such as climate change, UNSC reform and UN peacekeeping, there are significant differences.
In case of UNSC reforms, for instance, the Ezulwini consensus adopted by African nations at the prodding of China effectively preserves the status quo and benefits only the existing five permanent members of the UNSC rather than either India or Africa’s interests.
Finally, there are security threats emerging from Africa that not only impact the African nations but also have a strong bearing on India. Terrorism and organized crime (including piracy) are of increasing concern to India and Africa. International terrorism has been on the rise in Africa in recent years extending from Nigeria in West Africa to Somalia in the Horn of Africa. Reports also claim that terrorist groups with linkages in Afghanistan, Pakistan and Iraq have been using Africa as recruiting grounds for jihad. While India is not directly affected by the localized terrorist organizations in Africa, the troubling links between Somali and other groups such as the al Qaeda-affiliated al Shabab, and militant groups in the Af-Pak region could significantly affect India’s future security.
While the IAFS process is crucial to sustain the complex and multifaceted India-Africa relationship, this process alone may not be enough to strengthen the burgeoning relationship. That may require multiple and more frequent processes of engagement involving not only government-to-government interaction but also the private sector, state governments as well as civil society.

New energy norms for urea plants may save Rs 800 cr in subsidy

New energy norms for urea plants may save Rs 800 cr in subsidy
The government has issued revised energy norms under the new urea policy for existing 25 gas-based urea plants in the country, a move that is expected to save about Rs 800 crore in fertiliser subsidy.
As per the norms issued by the Fertiliser Ministry, all the gas-based urea manufacturing plants are divided into three groups and a specific energy norm is fixed for each plant.
Fertiliser subsidy stood at about Rs 70,000 crore during the last fiscal.
Under the first group, plants can consume 5.5 g.Cal of gas per tonne of urea, plants under second group can consume 6.2 g.Cal of gas and those in third group can consume 6.5 g.Cal of gas.
Gas constitutes of about 65-70% of the cost of production of urea and cost of gas used is reimbursed by the government in the form of subsidy.
"...We have issued the new energy norms for all the 25 gas-based urea plants and as per these norms it is estimated that there will be savings of Rs 800 crore in subsidy payments on account of cost of gas," a source said.
The new norms have been issued as per the new urea policy which was cleared by the Cabinet in May this year.
The Policy has the objective of maximising indigenous urea production and promoting energy efficiency in urea units to reduce the subsidy burden on the Government.
The Cabinet had already approved the pooling of gas to provide gas to all urea plants at a uniform price.
The government had already decided in January to allow urea producers to produce neem coated urea up to 100 percent of production.
Neem coated urea is required less in quantity with same plot size and gives higher crop yields.
The MRP of urea for the farmers is fixed at Rs 268 per bag of 50 kg, excluding local taxes. Government pays the difference between cost of production and selling price as subsidy to the companies.
India produces about 22 million tonnes of urea and imports about 8-9 million tonnes to meet the domestic shortfall.

Judicial independence, accountability and transparency

Judicial independence, accountability and transparency
In all the discussions and debate on the merits of the collegium and the National Judicial Appointments Commission (NJAC), what’s been lost is the question of whether the NJAC, as envisaged under the 99th Constitutional Amendment and NJAC Act 2014, actually served the purpose it was supposed to.
The 99th Amendment and the NJAC Act, we are told in the Statement of Objects and Reasons, set out to introduce accountability and transparency in the procedure of appointment of judges. This was sought to be done by incorporating the Union law minister and such “eminent persons” selected by the prime minister, leader of opposition in the Lok Sabha and the chief justice of India.
This raises the obvious question: To whom is the NJAC supposed to be accountable and to whom does the process seem transparent? The obvious answer seems to be the government and, indirectly, Parliament. The citizens of India are twice removed from the process and in no way wiser about the selection process than the currently opaque collegium process. The NJAC incorporates all the drawbacks of the collegium system with merely cosmetic changes to the composition. No norms of suitability of judges are set out, no involvement of the wider public is envisaged and much of importance is left to be decided at a later date, non-transparently by the collegium itself.
Does that automatically mean that the Supreme Court should have struck down the 99th Constitutional Amendment and the NJAC Act as being an intrusion into the independence of the judiciary? I do not necessarily think so. The Supreme Court’s judgment in Supreme Court Advocates on Record Association vs Union of India, striking down of the 99th Constitutional Amendment and the NJAC Act as being against the basic structure of the Constitution is, in my view, based on some questionable presumptions of fact and legal prestidigitation. Even those in favour of the judgment have not attempted to defend it on purely jurisprudential and legal grounds. The defence of the judgment rests on the fact that the consequences are better than the alternative: whatever its faults, the collegium has resulted in mostly independent judges whereas the NJAC (essentially the same collegium system with two less judges and three other participants) offers up the possibility and scope of executive mischief in appointment.
Yet, focusing exclusively on the aspect of independence of judges, whether in the context of the collegium or the NJAC, has meant that the terms of the debate have narrowed and taken the focus away from the equally important issues of accountability and transparency in the functioning of the judiciary. While independence of the judiciary was no doubt an important issue over which the executive and judiciary engaged in a mahayuddh in the 1970s, 80s and 90s, the fact remains that accountability of the judiciary and transparency in its functioning pose far more penetrating questions today that, if unanswered, threaten to undermine the institution.
It is a folly to separate issues of independence, and transparency and accountability in functioning of the judiciary into separate boxes. Functional independence sans accountability and transparency is a form of tyranny. Demanding accountability and transparency without a guarantee of functional independence is tantamount to demanding servitude. Neither is the proper state of affairs for our judiciary, and all modern, democratic societies have tried to strike some balance between these aspects in the way the judiciary is structured.
In looking at the next steps forward, the issues of judicial appointment must be addressed in tandem with those of accountability and transparency. We need more vigorous public debate on how to ensure accountability of judges and transparency in the functioning of the courts, and the court must willingly step into this debate. Having vigorously defended its independence, to dispel any notions that it is “a tyranny of the unelected”, the Supreme Court must accept the Right to Information Act, 2005, as its institutional dharma and not just as a bureaucratic inconvenience. This does not only mean that the judiciary must offer up information less grudgingly but should also be more proactive in releasing information and open itself to bona fide scrutiny from academics, researchers, the bar and lay citizens alike.
While judges in the lower judiciary are effectively held accountable by the high courts and on occasion, the Supreme Court, the same cannot be said of the judges of the higher judiciary itself. Apart from the ultimate tool of impeachment by Parliament on grounds of “misbehaviour”, we lack effective tools to address various kinds of misbehaviour that may not necessarily warrant impeachment but nonetheless harm the judiciary’s functioning and society at large. While the instances of malfeasances—corruption in public office as seen in the cases of P.D. Dinakaran, Soumitra Sen and Nirmal Yadav merit the maximal penalty of impeachment, it would be difficult to contend that judges who have poor disposal rates, don’t sit in court on time, or tend to leave judgments undelivered for years after hearing cases should also be faced with such maximal penalties. The time has come to back up the principles of good judicial conduct with penalties and ensure that these standards are upheld in public life for judges at all levels.
The judiciary is an independent constitutional authority in its own right, just as Parliament and just as the executive. Independent, harmonious functioning in an accountable and transparent manner is required of all three wings. Judicial reforms, especially those concerning the higher judiciary, must therefore be approached holistically—questions of independence, accountability and transparency must be grappled with and solutions proposed that will balance all these principles without undermining any. Non-negotiable should be a threshold level of independence of the judiciary from the executive and Parliament, accountability of judges in their functioning to the public at large, and transparency in the functioning of the judiciary that enables the public at large to appreciate why the institution works the way it does.

Inequality and growth

Economists don’t write bestsellers. But when Thomas Piketty published Capital in the Twenty First Century, his treatise on the inherent tendency of rising inequality under capitalism, it instantly became a runaway success. Angus Deaton, for whom inequality—including in India—has been a major focus of research, was given the Nobel Prize for economics last week. The World Economic Forum, which is the pre-eminent club of business and political leaders from the world’s richest countries, and not a “bleeding heart” forum for the “have-nots”, continues to cite rising inequality as a major global risk in its annual Global Risk Report. Why all this recent attention to inequality studies? Why the great concern about rising inequality?
I return to this question further below, but first a review of the facts. Is inequality indeed rising?
Piketty verified his theory empirically with data largely drawn from Europe and the US. But the tendency of rising inequality is also firmly confirmed by trends in Asia. Using data from the Asian Development Bank’s 2012 Asian Development Outlook, economists Juzhong Zhuang, Ravi Kanbur, and Changyong Rhee demonstrate that from the 1990s to the 2000s, income (or consumption) inequality distinctly increased in 12 major countries of the region, covering 80% of the Asian population (see chart).
The increase in inequality varied across countries and was most prominent in China. The rise in inequality there was about four times that in Taiwan, where it rose the least. Inequality also increased in India. But the increase was moderate compared with China, Indonesia, Korea, and some other countries. Inequality estimates for India may be underestimates as they are based on consumption expenditure not income. But whether that should effect increases in inequality is not clear.
In a recent study dealing specifically with India (mintne.ws/1Llxss0), economist Himanshu shows that inequality has been rising in rural India, but much less than in urban India. Thus, between 1993-94 and 2011- 2012 the Gini coefficient (x100), a standard measure of inequality, increased from 25.8 to 28.7 in rural India compared with an increase from 31.9 to 35.9 in urban India (see table). For the country as a whole, the Gini coefficient (x100) went up from 30 to 35.9 over the same period.
Why is inequality rising?
There are three broad mutually reinforcing forces at work that drive the rise in inequality.
The first is technological change. Every wave of innovation in the modern era, triggered by the steam engine, electricity, the motor car, the transistor, the computer and the IT revolution, etc., has resulted in the rising capital intensity of technology. That, in turn, has shifted demand in favour of capital vis-a-vis labour, thereby raising the share of profits relative to wages. It has also shifted demand in favour of more skilled workers relative to less skilled workers, thereby raising wage differential between skilled work, including the work of managers, and unskilled work. Both these trends have, in turn, raised inequality.
The capital intensification of technology has been reinforced by the massive growth in global trade and the globalized system of production, communication and finance. Capital can now source labour and locate production wherever it needs to in order to minimize the cost of labour.
Consider miniaturization, a technical change that has combined room sized computers, bulky television sets and landline telephones into a single smartphone. But supporting that little phone is an awesome system of global infrastructure: supply chains, robotized factories, power production and delivery systems, and the network of terrestrial communication systems integrated with satellite communication systems and trans-continental fibre optic cables under the sea.
All of this raises the demand for capital inexorably. It reinforces the shift of demand in favour of capital vis-a-vis labour, and in favour of skilled work as opposed to unskilled work. These, in turn, intensify the rise in inequality.
The trend of rising inequality is further strengthened by liberalization reforms that free up markets in developing countries. Free markets better reflect scarcity values as demand shifts in favour of capital vis-a-vis labour and skilled work vis-a-vis unskilled work, thereby accelerating the rise in inequality.
I now return to my original question, why is rising inequality such a concern for the World Economic Forum?
Traditionally, the relationship between inequality and growth was seen in a rather static, zero-sum framework. Should we redistribute the existing pie, thereby compromising growth, or should we focus on growth, ignoring inequality? After all, a rising tide will lift all boats.
It is now recognized that the forces that drive growth are also the forces that raise inequality as discussed above, i.e., technical change, globalization and liberalizing policy reforms (Juzhong Zhuang, Ravi Kanbur, and Changyong Rhee 2014). They are two sides of the same coin. Moreover, there are negative feedback effects from rising inequality that adversely effect growth. So the search for growth can no longer ignore the challenge of rising inequality.
Consider a poor country where large sections of the working-age people are at the base of the income pyramid. They do not have access to the required minimum levels of nutrition and healthcare. They also lack access to the education and skill training required to equip themselves as skilled workers. Such a country will be trapped at levels of productivity and growth that are well below its potential.
However, countries can be trapped below their potential even without extreme deprivation if rising aspirations clash with the rise in inequality. The growing mass of people at the lower quintiles of income may not be hungry any more. But if they lack the means to fulfil their aspirations, that too can generate a great deal of anger and social tension. Such tensions are heightened in our times by consumerism and 24x7 television. Even poor people living in remote villages are exposed to the lifestyles and consumption of the rich, developing aspirations they may never be able to fulfil.
As the WEF’s 2015 Global Risk Report points out, rising inequality stokes the fires of social unrest and instability. Once instability takes hold of a society, normal governance, peace and security, the rule of law, all fall by the wayside.
In Angus Deaton’s words: “...there are also terrible dangers of inequality, if those who have escaped from destitution use their wealth to block those who are still imprisoned in it”.
The evolution of the crisis thereafter can take two different paths.
If the crisis takes an extreme form, it could be beyond the capacity of the government to cope. Governance could break down, and eventually there could be a failed state. There are several such examples around the world, including in our own neighbourhood. Growth is not even on the agenda in this scenario.
Alternatively, a government may be unable or unwilling to tackle the roots of rising inequality, but it may try to contain social unrest. It will do so through palliative entitlement policies and accommodation of identity politics. We are seeing this path unfold in India.
The Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), the Right to Food, the Right to Education are all examples of such palliatives policies adopted to cope with the consequences of rising inequality. These policies do not contain rising inequality, but merely moderate its adverse social consequences. And they do so at a large cost, compressing the fiscal space for public infrastructure investment, thereby also compromising growth.
These palliative policies are combined with policies of appeasement towards identity politics in the context of scarce employment opportunities. Reservations and quotas in everything from panchayats, to college admissions to jobs rule the day. The Hardik Patel episode is a good example. Here is a community that is by no means poor. Yet it wants reservations, simply because others have it. We may soon see a day when all jobs will be allocated by quotas. Meanwhile, merit is going out of the window. Productivity and growth potential are being compromised.
Is there a better way forward? Some ingredients of inclusive growth are well known. Public provisioning of quality education, skill development and health services for the poor. Ensuring transparency and fair competition in land and other asset markets, preventing regulatory capture. A level playing field between employers and employees in the labour market. Competitive product markets. A prudent fiscal strategy that combines restraint on tax expenditures along with targeting of subsidies.
Will all of this yield growth without rising inequality? We won’t know till we have tried it. Successive Union governments have sworn allegiance to inclusive growth but never delivered. It would take a statesman, not an ordinary politician, to rise above short-term political expediency, and the usual pulls and pressures of power, to walk down this path. Meanwhile, it may be instructive to look around and see which country, if any, has managed to contain the rise in inequality without compromising growth.

25 October 2015

The NJAC verdict: An alternative view

The Supreme Court of India, by a majority opinion, has struck down the 99th Constitution Amendment, which provided for the establishment of the to appoint judges of the High Court and the Supreme Court. Having read the of the five hon'ble judges, a few issues arise in my mind.

The key rationale behind the majority opinion appears to be that independence of the judiciary is an essential ingredient of the basic structure of the Constitution. This is unquestionably a correct proposition. Having stated this, the majority transgresses into an erroneous logic. It argues that the presence of a law minister in the commission and the appointment of two eminent persons in the commission by a group, which will, besides the Chief Justice of India, comprise the prime minister and the leader of the Opposition, will constitute political involvement in judicial appointments. Judges appointed on this basis may feel gratified to politicians. Political persons would be obviously guided by their political interest. The judges warn of "adverse" consequences if politicians were a part of the appointment process. Hence protection of the judiciary from political persons was essential. This is a key reason on which the Constitution Amendment, unanimously passed by both the Houses of Parliament and the State Legislature, has been struck down.

Politician bashing is the key to the judgement. One learned judge argues that has opined that the dangers of an Emergency-like situation are still there. Civil society in India is not strong and, therefore, you need an independent judiciary. Another argues that it may be possible that the present government does not favour appointment of persons with alternative sexuality as judges of the High Court and the Supreme Court. Politician bashing is akin to the 9 pm television programmes.

The judgement ignores the larger Constitutional structure of India. Unquestionably, independence of the judiciary is part of the basic structure of the Constitution. It needs to be preserved. But the judgement ignores the fact that there are several other features of the Constitution, which comprise the basic structure. The most important basic structure of the Indian Constitution is parliamentary democracy. The next important basic structure of the Constitution is an elected government, which represents the will of the sovereign. The prime minister in a parliamentary democracy is the most important accountable institution. The leader of the Opposition is an essential aspect of that basic structure representing the alternative voice in Parliament. The law minister represents a key basic structure of the Constitution - the Council of Ministers, which is accountable to Parliament. All these institutions, a parliamentary sovereignty, an elected government, the prime minister, the leader of the Opposition, the law minister are part of the Constitution's basic structure. They represent the will of the people. The majority opinion was understandably concerned with one basic structure - independence of the judiciary - but to rubbish all other basic structures by referring to them as "politicians" and passing the judgement on a rationale that India's democracy has to be saved from its elected representatives. The judgement has upheld the primacy of one basic structure - independence of the judiciary - but diminished five other basic structures of the Constitution, namely, a parliamentary democracy, an elected government, the Council of Ministers, an elected prime minister and an elected leader of the Opposition. This is the fundamental error on which the majority has fallen. A Constitutional court, while interpreting the Constitution, had to base the judgement on Constitutional principles. There is no Constitutional principle that democracy and its institutions have to be saved from elected representatives. The Indian democracy cannot be a tyranny of the unelected and if the elected are undermined, democracy itself would be in danger. Are not institutions like the Election Commission and the CAG not credible enough even though they are appointed by elected governments?

As someone who has spent more years in court than in Parliament, I feel constrained to speak out for Indian democracy. There is no principle in a democracy anywhere in the world that institutions of democracy are to be saved from the elected.

The illustrations given had to be on a sounder footing. If one leader feels that there are dangers of Emergency, there is no presumption that only the Supreme Court can save it. When in the mid-1970s the Emergency was proclaimed, it was people like me - the politicians - who fought and went to prison. It was the Supreme Court that caved in and, therefore, for the court to assume that it alone can defend the nation against Emergency, is belied by history. As for the cause of those representing alternative sexuality, the Delhi High Court had decriminalised it. I am a part of the present government, but I had publicly supported the opinion of the Delhi High Court. It was the Supreme Court which recriminalised alternative sexuality.

The judgement interprets the provision of Article 124 and 217 of the Constitution. Article 124 deals with the appointment of judges in the Supreme Court and Article 217 deals with the appointment of judges of the high courts. Both provide for the appointment to be made by the President in consultation with the Chief Justice of India. The mandate of the Constitution was that the is only a 'consultee'. The President is the appointing authority. In the second judge's case, the court declared the Chief Justice the appointing authority and the President a 'consultee'. In the third judge's case, the courts interpreted the Chief Justice to mean a collegium of judges. The President's primacy was replaced with the Chief Justice's or the collegium's. In the fourth judge's case (the present one) has now interpreted Article 124 and 217 to imply 'exclusivity' of the Chief Justice in the matter of appointment, excluding the role of the President almost entirely. This is the second fundamental error in the judgement. The court can only interpret - it cannot be the third chamber of the legislature to rewrite a law.

Having struck down the 99th Constitution Amendment, the court decided to relegislate. The court quashed the 99th Constitution Amendment. While quashing the same, it re-legislated the repealed provisions of Article 124 and 217 which only the legislature can do. This is the third error in the judgement.

The fourth principle on which the judgement falls into an error is while stating that collegium system, which is a product of the judicial legislation, is defective. It fixed a hearing for its improvement. The court has again assumed the role of being the third chamber. If there is a problem with the procedure of judicial appointments, have those legislative changes to be evolved outside the legislature?

As someone who is concerned about the independence of judiciary and the sovereignty of Parliament, I believe the two can and must co-exist. Independence of the judiciary is an important basic structure of the Constitution. To strengthen it, one does not have to weaken Parliamentary sovereignty.

Prime Minister's interaction with African journalists at the Editors Forum for 3rd India-Africa Forum Summit

Prime Minister's interaction with African journalists at the Editors Forum for 3rd India-Africa Forum Summit


Opening Statement by Prime Minister

A very warm welcome to all of you. Some of you have probably had the opportunity of visiting India before and for some probably it is the first time that you are visiting India. I hope that for your comfort you have been well looked after here. I know that there is an official programme but if you have any suggestion of what you would like to do here in addition to the programme that has been set up for you, that can be accommodated. I also want that your visit here is not only important in the context of the India-Africa Forum Summit but the very fact that it is a visit to India, it is important and there will be full efforts on the part of my Government.

I feel that this India-Africa Forum Summit is very important from many points of view. Of course for India it is very important given that we are the host country, but this is the first summit where all the 54 countries of Africa have been invited and all the 54 countries are participating. In that sense the India-Africa Forum Summit is the biggest event of its sort and partnership at this scale.

Till now as per the information that we have received, 40 countries will be represented at the Head of State, Head of Government level, the rest are being represented by senior Ministers. This time, in association with the India-Africa Forum Summit there is also the Conference of Trade Ministers because we would want that in the days and months and years to come the economic relations between India and Africa should be further strengthened.

The India-Africa Forum Summits have had two summits earlier, in 2008 and 2011, and now this is the 3rd India-Africa Forum Summit taking place. Earlier the two summits were organised on the basis of the Banjul Formula, and in that sense very limited countries had come and participated. But this time we decided to in fact come out of this formula and ensure that there was participation from all countries of Africa.

This I think is going to take relations between India and Africa to new heights. I think it is this partnership and this equality that is being given to all the countries. This is an initiative on our part and I think this is what makes this summit different from the two earlier versions. There are going to be meetings at various levels, at the top level. I think it is this partnership with all which is going to bring a new freshness in every corner of Africa. This new freshness is not just for Africa but also for India that this summit is going to bring new freshness in our relations.

I have been told that of course you have come to India and you are going to have a week-long programme during which you will be taken to various parts of the country and you will be seeing for yourself the progress and development. But in addition to you there are 400 journalists who are coming to cover this event from Africa and they are coming on their own with their own means. I think this itself indicates the importance that is being attached to this summit. From the discussions that I have been having with everyone, this summit in fact is attracting the focus of the entire world and people are in fact looking at it with great importance and I see this as a very good sign.

The relations between India and the countries of Africa, these relations and these bonds that we have, are not just political and economic but we also have a very rich cultural tradition. It is said that millions of years ago in fact the two parts of the Earth were one piece and it was only much later that they became two separate pieces of land, one was Asia and the other was Africa; and we have an Ocean which divides us. The west coast of India and the east coast of Africa in fact are linked by the sea.

I hail from the west coast of India from the State of Gujarat. It was in fact the Gujaratis who started trade and commerce with Africa and maritime relations earlier on. Even today there are 270,000 Indians who live in Africa and many of them are Gujaratis. In fact I too have had my links with Africa not only when I was the Chief Minister of Gujarat but even before that. I have always had relations with the African continent and whenever guests came they always met me. I have always had very good relations with various personalities of Africa. So, from a personal point of view I have always had very close links with this region.

In fact there are many similarities between India and Africa and together India and Africa we represent one third of the world’s population. The population of India equals in fact the population of the entire African continent. Africa in fact represents the youngest region in the world and India too is the youngest country. Perhaps when we look at the world today these are the only two places where 65 per cent of the population is below 35 years of age and I feel that this is a matter of great fortune for both Africa and for India.

The bilateral trade between India and Africa has been growing very rapidly and in the past few years it has grown by eight to nine times. I feel that after this summit it is going to see another major jump. India also is a major investor in Africa today and this is especially so in the oil sector and this is giving a new dynamism to the African economy.

Following the two previous India-Africa Forum Summits, India has given to the tune of 7.4 billion dollars of concessional credit and this has been used to enhance in the fields of infrastructure, agriculture, industry, energy and water. In more than 40 countries today there are more than 100 projects which are under implementation.

In the same vein, India has invested 1.2 billion dollars in more than 100 institutes and this is contributing in a major way to human resource development. For me I think the point which makes me the most happy is that there is this partnership between India and Africa that is human resource development, the capacity building. And in the last few years we have had the good fortune of imparting education and training to around 25,000 African students and I think this is a matter of good fortune for India. Today in Africa many of the leaders who are now in power and in top position have had their education and training in India.

I think between India and Africa there is another aspect that links us with many countries in Africa and that is solar power from which many African countries are benefiting. I think this is going to become a very strong community of nations and in the times to come the problem of climate change that the world is trying to counter and fight, we are going to be playing a very major role in mitigation and lessening the effects of climate change.

I think both India and Africa can feel proud of the fact that today the world is facing the problem of climate change, of the concerns regarding global warming, I think both India and Africa have had a tradition and it is in their culture not to pollute or not to damage the environment, and we have perhaps sinned the less and contributed the minimum to this big problem to the world. I think this also is a common factor between India and Africa.

I am convinced that during this summit and following the summit we are going to have very important decisions which will give both India and Africa a new sense of self confidence, our relations are going to become closer and deeper, and together I think we can lay the foundations of what we can contribute to the world.

Once again a very warm welcome to you. I will also have the opportunity of greeting you during the summit once again. Thank you.

Text of Prime Minister's written interview with African journalists at the Editors Forum for 3rd India-Africa Forum Summit

Question: What is the strategic importance of Africa to India in socio-economic and political terms? Is India's engagement with Africa a catch-up process with China in the scramble for resources?

Answer: The participation of all African countries, including over 40 at the level of Heads of State or Government, in the Summit is a testimony to the deep bonds of friendship and mutual faith between India and Africa.

This is a relationship that is beyond strategic considerations. It is a relationship with a strong emotional link. It has been forged by our intersecting history; our centuries-old ties of kinship, commerce and culture; our common struggle against colonialism; our quest for equality, dignity and justice among all people; and, our shared aspirations for our progress and a voice in the world. We are blessed with vast reservoir of mutual goodwill and confidence.

India and Africa constitute one-third of the world’s population. A large majority of them are in their youth. Indeed, India and Africa will have a significant part of the global youth population in this century. Their future will shape the course of this world to a great extent.

India and Africa are now the bright spots of hope for the global economy. India is the fastest growing major economy today. Africa is experiencing rapid growth, too. While India and Africa will both do much on their own to advance prosperity and peace for their people, our partnership can be a source of great strength for each other, both to reinforce and accelerate each other’s economic development and to build a more just, inclusive, equitable and sustainable world. We have complementary resources and markets; and, the power of our human capital. We have shared global vision.

Our approach to partnership with Africa is driven by the aim of empowerment, capacity building, human resource development, access to Indian market, and support for Indian investments in Africa, so that the people of Africa have the capacity to make their own free choices and the capability to shoulder the responsibility of their continent’s development. Our relationship with Africa is unique and does not need any point of reference.

Question: How and to what extent have the relations between India and Africa helped in the development process of the African continent? How is it a win-win situation for both?

Answer: Africa’s development in recent years has been impressive. First and foremost, it is the result of African vision, leadership and efforts to strengthen peace and support economic development in the continent. There are many inspiring models and examples of African success stories in sustainable development and empowerment of people, especially youth and women.

India is privileged to be a development partner for Africa. From the time African nations started gaining independence, we have been supporting human resource development in African countries. Our cooperation now takes many forms and is expanding rapidly in scale and range.

34 African countries now enjoy duty free access to the Indian market of 1.25 billion people. Over the last two IAFS, we have committed USD 7.4 billion in concessional lines of credit, which is contributing towards development of infrastructure, light manufacturing, public services and clean energy in Africa. We have committed grant assistance of USD 1.2 billion that is helping finance human resource development and establishment of over 100 capacity building institutions in Africa. In the past three years alone, 25000 Africans have been trained or educated in India. The Pan Africa e-network, which now connects 48 African countries, is becoming the new highway of regional connectivity and human development.- India has emerged as a major and rapidly growing source of Foreign Direct Investment in Africa. Indian tourist flow to Africa is also increasing.

Africa’s development is a huge opportunity for India, just as Africa’s resources, including oil, power India’s economic growth and create wealth and jobs in Africa. The continent’s progress will add great stability and momentum to the global economy and benefit India as well.

Question: Some analysts say that the effects of colonialism and neo-colonialism are acting as an impediment to peace, stability and development of Africa. India too underwent such a historical legacy, but has been able to break free of this cycle of strife and fragmentation, and to concentrate on governance, development and growth. What lessons does India hold in this regard for Africa?

Answer: India’s independence had a strong positive impact on anti-colonialism and freedom movements in Africa. We are also proud to have stood firmly in the cause of independence of African countries and to end apartheid.

Africa does not need any lessons from us. Colonial legacy left a long and deep impact on all of us. Africa, too, has passed through difficult times. However, Africa is making impressive progress now. The continent is more settled and stable. African nations are coming together to take responsibility for their development, peace and security. Africans are exercising their franchise in increasingly large numbers. We see growing efforts at economic reforms and regional economic cooperation and integration. Economic growth has accelerated. Around 95% of Africa is on mobile telephone now. There are laudable initiatives on education, innovation, empowerment of women, skill development and conservation of Nature.

Of course, Africa continues to face many familiar development challenges. There are also new security problems, including from terrorism and extremism, which also affect other parts of the world.

Africa has a rich history of accomplishments; abundant natural resources; and, a large and talented youth population. I have full confidence in the African leadership and the African people to realise the vision of "Agenda 2063: The Africa We Want”.

India will always be there, as a friend and partner, to share our experience, expertise and resources to support African nations in whatever manner they want. Since many of our challenges are similar to what Africa faces, our solutions may be relevant in the African context.

Question: What can both India and Africa do to benefit from greater bilateral trade and investments? What are the achievements in this sphere since the first India-Africa Forum Summit (IAFS-I) in 2008?

Answer: I see enormous opportunities for trade and investment ties between India and Africa. India will be the most populous country and Africa the most populous continent in this century. We both have young populations. Africa is also blessed with huge resources. Both India and Africa will grow, modernise and urbanise at a rapid rate.

Our economic partnership is gathering momentum. India’s trade with Africa, which was about US$ 30 billion in fiscal 2007-08 more than doubled to about US$ 72 billion in fiscal 2014-15. Besides economic growth in India and Africa, trade has also benefited from India’s decision in 2008 to offer duty free access to Indian markets to all Least Developed Countries, in the context of the first India-Africa Forum Summit. 34 African countries are direct beneficiaries of the scheme.

India has emerged as a major investor from the developing world in Africa, surpassing even China.

Our Lines of Credit to Africa, which is cumulatively USD 7.4 billion from the first two IAFS is creating infrastructure in Africa and boosting bilateral trade. Similarly, Africa’s vast resources and availability of arable land can not only power Africa’s prosperity, but can also become a major source of meeting India’s rapidly growing demand.

India has focused development partnership in human resource development and establishment of institutions in Africa, which are, in turn, creating the skills and capacities in Africa, including in areas like agriculture, food processing, textiles, small industries, etc., to expand exports to India and other countries.

I should also add that Africa’s laudable efforts at integrating Africa’s markets would also stimulate bilateral trade and investment.

As both India and Africa emerge as the new frontiers of opportunities in the 21st century, I am looking forward to the third India-Africa Forum Summit to explore with African leaders how we can further expand our economic partnership and also work to shaping a more favourable global economic environment and institutional framework.

Question: In what ways can the New Development Bank established by BRICS countries in July 2015 benefit African countries?

Answer: The New Development is a significant initiative that can have a profound impact on the global financial order. For one, it is, perhaps, the first major initiative on a multilateral financial institution along with the Asian Infrastructure Investment Bank in recent times. It has brought together the five BRICS countries as equal partners in the establishment of the Bank, which reflects a completely new paradigm of financial structure of such institutions. The lending practices will be designed keeping the interests and experiences of the developing world in mind. It has opened a new avenue for financing infrastructure investments in developing countries. I think Africa will be a major area of focus and we would also, hopefully, have an African window or regional presence of the Bank in the future.

Question: Agricultural and related activities are fundamental to the people of the African continent? It also sustains a majority of the people of India. How can India assist Africa in adopting and maintaining sustainable agricultural practices and development?

Answer: Africa has 60% of the arable land in the world, but produces 10% of the global food output. Development of the agriculture sector can not only drive Africa’s economic development, employment and food security, it could also turn Africa into the food bowl for the world. African achievements in recent times give us confidence in the future of agriculture in Africa .

India has made considerable progress in agriculture and dairy sectors over the last few decades. We are among the leading global producers in these sectors. Indian success has taken place in the context of low capital intensity farming and varied biodiversity conditions, which can be of great relevance to Africa. Indeed, agricultural experts from India have been deployed in various African countries since the 1960s. Scholarships for agriculture-related courses in India are very popular in Africa. Agriculture remains an area of priority in our development partnership with Africa. It takes many forms: human resource development, creation of agriculture-related institutions in Africa, irrigation projects, technology transfer and modern agriculture practices. As we now look to the future, we will continue to work with Africa in these areas, but also address emerging challenges: climate resilient agriculture and adaptation to climate change. We will also focus on post-harvest processing and supply chain. I also look forward to hearing African priorities in this regard.

Question: The economic partnership between India and Africa extends beyond trade and investment to technology transfer, knowledge sharing and capacity building. What more can be expected from India in the next few years?

Answer: India-Africa economic partnership is not transactional. It rests in the belief of our shared destiny and the power of South-South cooperation in transforming the lives of our people.

India will always work in accordance with the requirements and priorities of our friends in Africa. We will also work together to harness opportunities and possibilities created by new technology and address emerging challenges like climate change. The roadmap for the future will reflect our shared vision and goals, and our respective strengths and capabilities.

Our areas of focus will continue to be on human resource development, institution building, infrastructure, clean energy, agriculture, health, education and skill development. We will also work together on addressing climate change and sustainable development of blue economy.

We will certainly raise our partnership to a much higher level in the years ahead. We will also make our partnership more effective, based on a comprehensive review of our Development Partnership programme with Africa, particularly in terms of capacity building, infrastructure support and technology sharing, and discussions with our African partners.

Question: Does India's commitment to reform of the global political and economic order, dovetail with its aspirations to become a member of the UN Security Council?

Answer: The world is undergoing political, economic and technological transition on a scale rarely seen in recent history. We have four times as many member countries in the United Nations as we had at its inception. Awareness of rights and aspirations for progress is more widespread now. Global power is more distributed. We live in a digitally networked world, which is changing the character of the global economy. Threats to peace and security have become more complex, unpredictable and undefined. In many ways, our lives are becoming globalized, but fault-lines around our identities are growing. Terrorism, cyber and space are entirely new frontiers of threats, opportunities and challenges. Climate change is a pressing global challenge. The developing world is dealing with complexities of a new wave of urbanization.

Yet the global order, its institutions and our mindsets continue to reflect the circumstances that existed at the end of the last World War. These institutions have served us well, but they must be reformed in order to remain effective and relevant in the new era. If global institutions and systems do not adapt, they will risk irrelevance. We might have a more fragmented world and our collective ability to deal with the challenges and changes of our era will also be weakened.

That is why India advocates reforms in global political, economic and security institutions. They must become more democratic, inclusive and representative of our world. No institution will have that character today, if it does not give voice to Africa or the world’s largest democracy, constituting one-sixth of humanity. That is why we ask for reforms of the United Nations Security Council and global financial institutions. India and Africa, constituting one-third of the global population, must continue to speak in one voice for these reforms.

Question: What will the Summit (IAFS-III) produce as a tangible result in terms of cooperation between India and Africa?

Answer: Our objective is to deepen the spirit of partnership, strengthen our international solidarity and expand our cooperation. When I look at the Africa’s vision for itself, captured so eloquently in Agenda 2063 document, I believe that our development goals and international aspirations are closely aligned. This will be the foundation of our partnership in the years ahead.

At the third India-Africa Forum Summit in Delhi, we hope to set substantially higher and ambitious targets for our development partnership. We also aim to make it more effective, drawing upon our experience over the past decade. As in the past, our primary aim is to support our African partners in their efforts to accelerate the momentum of their development. We will also address key challenges of our times, including food, health and environmental security. We will create conditions that stimulate trade and investment flows between our countries. We will work together to address the problems of climate change. We will explore new areas like a sustainable Blue Economy. Our initiatives will aim to use the power of science and technology, Space science and the networked world to transform lives. This is not a one-way street. We hope to learn a great deal from numerous African success stories in all walks of life.

We will also reinforce our partnership on the global platform and deepen our security cooperation, including on maritime security, countering terrorism.

The third Summit, which will see the participation of all African nations for the first time, will launch a new era of India-Africa partnership.

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