28 October 2015

Living in nuclear la-la-land

Last week, shortly before US President Barack Obama's meeting in Washington with Pakistan Prime Minister Nawaz Sharif, its Foreign Secretary, Aizaz Ahmad Chaudhry, acknowledged small-yield, short-range tactical nuclear weapons (TNWs) as part of his country's nuclear arsenal. In March, Lieutenant-General Khalid Kidwai, the long-time chief of Pakistan's Strategic Plans Division (which controls nuclear weapons targeting) had said the same thing in a talk in Washington; but since Mr Kidwai had recently retired, that was not official confirmation. Now Mr Chaudhary has explained that TNWs are Pakistan's counter to India's so-called Cold Start Doctrine. This doctrine, the very existence of which is denied by New Delhi, is an operational plan to punish unacceptable Pakistani provocations - such as high-casualty terrorist strikes in India - by launching swift, shallow offensives into that country with tank-heavy forces.

Pakistani military planners know that, given India's powerful tank forces, they would be spread too thin to halt India's Cold Start thrusts. Inevitably, many thrusts would make headway, capturing Pakistani border towns and creating the impression of an Indian victory. The rapidity of Cold Start offensives would overtake the deterrence time lines that had prevailed earlier. Now Indian war objectives might be met before Pakistan's General Headquarters (GHQ) at Rawalpindi could signal to New Delhi - halt, or we will cross the nuclear threshold, using traditional nuclear weapons of 15-20 kilotonnes (KT) or more, delivered by missiles over hundreds, even thousands, of kilometres. GHQ tightly controls these "strategic" weapons, so it takes time to ready and launch them, providing India's offensive forces the time to achieve their ends.

To speed up their nuclear response, Pakistan developed TNWs - relatively small nuclear weapons, usually below 2-3 kilotonnes, which are launched at battlefield targets like tank forces, at ranges of 60-100 kilometres, through short-range missiles. Due to the distances between the National Command Authority in Islamabad and the India-Pakistan border, TNWs would have to be located near the border and placed under local corps commanders. This "de-centralisation" renders TNWs vulnerable to theft or, even unauthorised use by renegade commanders. While Pakistan must be developing preferential access links (PALs) for its TNWs - software codes to restrict their operation to select commanders - these would take time to implement and perfect. And, in the confusion of a possible battlefield debacle, TNWs could well fall into the hands of unauthorised persons.

Such doomsday scenarios create the insecurity and uncertainty that suit Pakistan. Islamabad hopes that by posing a clear and present danger, it can force Washington's hand, extracting concessions - like a nuclear pact - that would allow Islamabad spin-doctors to claim Pakistani equivalence with India, a cherished strategic objective. Mr Sharif implicitly justified his TNWs by blaming a "hostile" India for forcing his military's hand. Addressing the US Institute of Peace, Mr Sharif declared that India's "dangerous military doctrines… will compel Pakistan to take several countermeasures to preserve credible deterrence." Nobody doubted he was talking about TNWs.

New Delhi has little control over Pakistan's decision to deploy TNWs. Nevertheless, Indian policymakers must now incorporate in our nuclear doctrine a realistic response to TNWs. Our nuclear doctrine - issued as a "draft nuclear doctrine" in August 1999, and modified slightly in a gazette notification on January 4, 2003 - pledges that India "will not be the first to initiate a nuclear strike, but will respond with massive retaliation should deterrence fail."

This implies India's default response to a Pakistani TNW strike - even against Indian troops on Pakistani soil - would be "massive retaliation", i.e. striking counter-value targets (towns and cities) in Pakistan with the full weight of India's arsenal. However, India's massive response would only damage, not destroy, Pakistan's nuclear arsenal. According to the well-respected Arms Control Association, India and Pakistan have about 120 nuclear weapons each. Even if India's "massive retaliation" destroys half of Pakistan's arsenal (and there is little surety of that), India would then have to absorb Pakistan's "second-strike" response, which would consist of about 60 nuclear bombs on Indian towns and cities. This would be an unimaginable blow. Yet Indian planners blithely go about their day as if the game would surely end with India's massive first strike.

Furthermore, few outside Lutyens New Delhi swallow the notion that India would respond to a single TNW by reducing Pakistan to a smoking ruin (albeit one that would shortly afterwards reduce India to the same state). Deterrence is a mind-game that one side quickly loses if the opponent does not believe that a threat will be executed.

Former Israeli Air Force chief, General David Ivry, explains deterrence through a formula - "Power (P) x Intent (I) = Deterrence (D)" - which regards deterrence as the product of two factors. The first, i.e. power, is not the actual capability of the deterring country (India), but what the country being deterred (Pakistan) believes its capability to be. If Pakistan believes, rightly or wrongly, that Indian missiles and aircraft cannot deliver nuclear weapons to Pakistani targets, the P in the equation will be zero, and deterrence will fall to zero too. The second factor, i.e. intent, represents the deterring country's "political and military willingness to use force". Regardless of India's actual strength and intent, if Pakistan believes that Indian policymakers do not have the stomach for obliterating Pakistan with a devastating "massive retaliation", the factor D, i.e. the deterrence value of the Indian arsenal again falls to zero.

That is why Israel has retaliated swiftly and overpoweringly to every provocation: pre-emptively smashing three Arab air forces in the Six Day War of 1967, rescuing hostages from an El Al airliner hijacked to Entebbe in 1976, pre-emptively destroying an Iraqi nuclear reactor at Osirak in 1981, taking out Syrian anti-aircraft missile sites in the Bekaa Valley in the Lebanon War of 1982, avenging the killing of three Israeli civilians in 1985 with punitive air-strikes on the Tunis headquarters of the Palestine Liberation Organisation, and striking and destroying a suspected nuclear facility in the Deir-ez-Zor region of Syria in 2007. Given Israel's willingness, even eagerness, to use pre-emptive or retaliatory force, its I-factor is extremely high, raising deterrence.

In contrast, New Delhi's forbearance pegs its I-factor close to zero. India's military was poised on the border for 10 months after Pakistani terrorists attacked India's parliament building in 2001, but New Delhi desisted from using force. Similar restraint was displayed after a terrorist squad sailed into Mumbai from Pakistan and killed 165 people in the infamous 26/11 attacks. New Delhi also shrank from retaliating against Pakistan in 1993; after 257 people were killed in serial bomb blasts in Mumbai; and in 2006, when a series of bombs in suburban trains in that city killed 187 Indian citizens. The last time India used force against Pakistan was in 1999, when troops from that country sought to change the border in Kargil.

Without passing judgment on such restraint - forbearance is often advisable - New Delhi's remarkable consistency in avoiding the use of force subtracts credibility from any Indian doctrine of massive retaliation. Pakistan's formal announcement of TNWs is a reminder for the Indian doctrine to incorporate flexible retaliation, which increases our planners' options, and complicates the opponents' calculations.

A look at the country's urbanisation prospects

The inauguration of Andhra Pradesh's new capital city is a valuable time to take stock of India's urbanisation prospects.

A World Bank study of urbanisation in South Asia released last month points out, through Table 1, that South Asia is the least urbanised major world region. However, the Bank's own estimate of urban agglomeration is considerably - almost twice - as high as India's domestic estimate, a point made for all the South Asian countries in Table 2. As Table 3 shows, South Asia is not urbanising as fast as its low urban ratio would suggest, either, well behind East Asia and on a par with sub-Saharan Africa. Nor is South Asia becoming urban at the rate that seems appropriate for its stage of economic development, as Table 4 suggests.

However, South Asia's share of global gross domestic product (GDP) is well below its share of the global urban population, as Table 5 makes clear. This suggests that its cities are under-performing. The worry is that, as Table 6 shows, manufacturing employment has simply failed to grow in the metropolitan core or in suburban towns. In fact, the only real urban job growth has come in the real estate sector.

As Table 7 shows, unorganised manufacturing, once a non-urban phenomenon, has increasingly spread to the cities after liberalisation.

NDA plans to rewrite direct tax laws

NDA plans to rewrite direct tax laws

Govt constitutes 10-member panel to overhaul the provisions of the Income-Tax Act (I-T Act), 1961 to reduce litigation arising from ambiguous drafting of laws
The government has set in motion the process of rewriting income tax laws to bring them in sync with the contemporary Indian economy.
On Tuesday, the government constituted a 10-member committee to overhaul the provisions of the Income-Tax Act (I-T Act), 1961 with the aim of reducing litigation arising from ambiguous drafting of laws.
The deadline for the committee has been staggered, with the first batch of recommendations due on 31 January 2016, so that they can be incorporated in the Finance bill to be presented along with the Union budget for 2016-17.
“We have, over the last few months, been resolving a lot of past issues and now time has come to look at some provisions of the I-T Act to look at how their drafting quality can be improved in order to avoid ambiguity so that everybody is certain as to what the Act itself says,” finance minister Arun Jaitley told reporters.
The move is likely to provide relief to both domestic and foreign investors who have been vocal about the lack of clarity in Indian tax laws and the subsequent prolonged litigation caused by it. Around Rs.4-5 trillion is estimated to be locked up in litigation at various courts and appellate authorities.
The move also comes in the backdrop of the rapid rise of e-commerce in India and the consequent need to put in place tax regulations to govern online marketplaces.
This can be seen as the government’s second attempt to overhaul the I-T Act of 1961. The previous government’s proposal to introduce a direct taxes code bill to replace the Act was shelved by the National Democratic Alliance (NDA).
Jaitley has on several occasions signalled the need for an overhaul of the tax regime, especially with the intent of making Indian corporate entities more competitive. In fact, in his budget speech this year, the minister committed the government to gradually reducing corporate tax rates, currently at 30%, to 25%, and at the same time phasing out tax exemptions.
The committee, which has been constituted under retired Delhi high court judge and former president of the income tax appellate tribunal R.V. Easwar, has members from both the government and the private sector.
The committee has been asked to suggest modifications to the I-T Act to bring in predictability and certainty in tax laws without substantially impacting either the tax base or revenue receipts.
Other terms of reference of the committee include identifying provisions in the Act triggering litigations arising from different interpretations and provisions impeding the ease of business. The committee has also been asked to look at provisions that need simplification in the light of existing jurisprudence.
“Any step that is taken to address the menace of tax disputes is welcome. A need has been felt for many years to revisit the provisions of the income-tax Act that help in improving the ease of doing business and reduce litigations,” said Mukesh Butani, chairman, BMR Advisors.
The finance ministry is hoping that the committee, which has a tenure of one year, will submit its first set of recommendations in the next few months so that the government can incorporate the changes in the finance bill next year.
“We are hoping the committee can submit as many recommendations as possible in its first batch of suggestions by 31 January so that they can be incorporated in next year’s budget,” said Hasmukh Adhia, revenue secretary in the ministry of finance. “There are members from the private sector as well and they will know which sections lead to the most litigations and need to be addressed at the earliest.”
Other members of the committee are former law secretary V.K. Bhasin; Rajiv Memani, chairman-India region, EY; advocate Ravi Gupta; Ajay Bahl, founder and senior partner at AZB, a law firm; investment adviser Pradip P. Shah, who is the chairman, IndAsia Fund Advisors Pvt. Ltd; two officers of the Indian Revenue Service—Arvind Modi, considered the architect of the direct taxes code, and Vinay Kumar Singh; Vinod Jain, a chartered accountant; and Mukesh Patel, an advocate handling tax matters.
The committee has been given the option of working in sub-groups but has been asked to put its draft recommendations in the public domain for stakeholder feedback.
“The statement indicates that though the basic structure of the current income-tax Act will be retained, the government will review provisions that are leading to litigation or impacting its intention of improving the ease of doing business in India. Cross-border taxation, including transfer pricing, is one of the areas that sees too much litigation. The recent MAT (minimum alternate tax) controversy is another example,” said Sudhir Kapadia, partner and national tax leader at EY.
“However, there are already various committees that have looked into this or are looking into this. This committee should leverage the work already done by them,” he added.
He was referring to the battle between the government and foreign portfolio investors (FPIs) over the applicability of MAT on such investors. Eventually, after the recommendation of a panel led by former judge A.P. Shah, the government decided to amend the income-tax laws to exempt FPIs from MAT, which is levied on profit-making entities that don’t pay corporate income tax because of exemptions and incentives.

India moves up in ease of doing business rankings

India moves up in ease of doing business rankings

India is ranked 130 among 189 countries, an improvement of four places from last year’s ranking, according to World Bank’s Doing Business Report 2016
In a pat on the back for the National Democratic Alliance (NDA) government, India moved up four spots in the global rankings for ease of doing business released by the World Bank on Tuesday.
The new rankings acknowledge the efforts undertaken by the Bharatiya Janata Party-led NDA to make it easier for entrepreneurs and companies to do business in the country.
“Fostering an environment more supportive of private sector activity will take time. But if the efforts are sustained over the next several years, they could lead to substantial benefits for Indian entrepreneurs—along with potential gains in economic growth and job creation,” the World Bank said.
India ranked 130 among 189 countries, an improvement of four places from its last year’s ranking of 134, according to the Doing Business Report 2016. The report takes into account data till June 2015 and is based on a new methodology adopted for compiling the ranks both this year and last year.
India improved the most among South Asian countries, according to the Washington-based multilateral lender, and recorded the biggest increase in its score since 2004.
Referring to the NDA’s initiative to enhance the ease of doing business, the World Bank report said: “Spanning a range of areas measured by Doing Business, the program represents a great deal of effort to create a more business-friendly environment, particularly in Delhi and Mumbai.”
Citing the area of starting a business as the biggest improvement, the World Bank said: “In the past year, India eliminated the paid-in minimum capital requirement and streamlined the process for starting a business. More reforms are ongoing—in starting a business and other areas measured by Doing Business—though the full effects have yet to be felt.”
This is the third improvement made by India in global rankings, said Manish Sabharwal, chairman of TeamLease Services, a human resource consulting company.
“The country has witnessed a nine-rank decline in Transparency International’s corruption index, 16-rank rise in the WEF’s (World Economic Forum’s) competitiveness index. You cannot beat this government on economic aspirations and such rankings are telling that only,” Sabharwal added.
India ranked 85 among 175 countries on the Transparency International index released in December, down from 94 a year earlier. India jumped 16 places in WEF’s global competitiveness rankings, released in September, to 55 out of 140 countries, from 71 out of 144 last year.
According to the World Bank, the improvement in India’s Doing Business ranking was due to the Indian government’s decision to amend the Companies Act to eliminate the minimum capital requirement of Rs.1 lakh to start a local limited liability company. The report also cited the government’s decision to facilitate online systems for filing and paying taxes to simplify tax compliance as a positive step.
“Fostering an environment more supportive of private sector activity will take time. But if the efforts are sustained over the next several years, they could lead to substantial benefits for Indian entrepreneurs—along with potential gains in economic growth and job creation,” the report said.
After taking charge in May last year, the NDA government under Prime Minister Narendra Modi has taken a number of steps to improve the business environment in the country. It aims to improve India’s ranking in the World Bank’s Doing Business rankings to under 50 in five years. From launching a single-window clearance system to making it easier for businesses to get approvals, to looking at ways to make the tax regime more predictable and stable, the government has looked at ways to encourage investors.
It has also unveiled several missions like Digital India, Make in India and Skill India to encourage more businesses to manufacture in India to generate employment. It is working to consolidate 44 labour laws into four to create a more enabling environment for industries. States like Rajasthan, Madhya Pradesh, Maharashtra and Gujarat have started labour law reforms to attract more investment and boost economic growth. Still, the government has failed to make any headway in putting in place a law to make it easier for businesses to acquire land, in the face of protests that it would undermine the interests of farmers. The government has now left it to state governments to follow their own land acquisition norms.
“We have to realize that events evolve to fulfil expectations and international rankings like these influence behaviour of a country and its people. Right now, I think the global perception of India is better than our own perception of the country,” Sabharwal added.
It has become more difficult for Indian businesses to access credit and pay taxes, but it is much easier to start a business, according to World Bank’s Doing Business Report 2016.
India improved its performance on three parameters—starting a business, getting construction permits and accessing electricity—in the World Bank Ease of Doing Business Index, but saw its performance deteriorate with regard to two parameters—accessing credit and paying taxes.
India moved up nine spots in the criteria of starting a business to 155 in 2016 from 164 last year.
India also registered a substantial improvement in providing electricity to businesses, moving up 29 spots to 70.
Its ranking for dealing with construction permits also moved up one spot to 183.
However, India slipped six spots in the parameter of accessing credit to 42, implying that it has become much more difficult to get credit in India.
It also slipped one spot in the criteria of ease of paying taxes.
In other areas such as protecting minority investors, registering property, trading across borders, enforcing contracts and resolving insolvency, the rankings for India remained the same as last year.
However, in the area of protecting minority interests of shareholders, India is ranked at eight, its best ranking across all parameters.
The Indian government is looking at ways to resolving insolvency issues and enforcing contracts through legislations like the bankruptcy law and public contracts dispute resolution bill—criterions where it is faring badly in the Ease of Doing Business rankings. India is ranked 178 in the parameter of enforcing contracts and 136 on the parameter of resolving insolvency.
In the World Bank report released late on Tuesday, India saw its overall rankings improve by four spots to 130 from 134 last year. The rankings for both the years are part of a revised methodology adopted by the bank.
“In the past year, India eliminated the paid-in minimum capital requirement and streamlined the process for starting a business. More reforms are ongoing—in starting a business and other areas measured by Doing Business—though the full effects are yet to be felt,” the World Bank has said.

27 October 2015

IAS (PRE)-2016 TEST SERIES.SAMVEG IAS DEHRADUN

IAS (PRE)-2016 TEST SERIES.SAMVEG IAS DEHRADUN


Indian policymakers must incorporate in nuclear doctrine a realistic response to tactical nuclear warheads

Last week, shortly before US President Barack Obama's meeting in Washington with Pakistan Prime Minister Nawaz Sharif, its Foreign Secretary, Aizaz Ahmad Chaudhry, acknowledged small-yield, short-range tactical nuclear weapons (TNWs) as part of his country's nuclear arsenal. In March, Lieutenant-General Khalid Kidwai, the long-time chief of Pakistan's Strategic Plans Division (which controls nuclear weapons targeting) had said the same thing in a talk in Washington; but since Mr Kidwai had recently retired, that was not official confirmation. Now Mr Chaudhary has explained that TNWs are Pakistan's counter to India's so-called Cold Start Doctrine. This doctrine, the very existence of which is denied by New Delhi, is an operational plan to punish unacceptable Pakistani provocations - such as high-casualty terrorist strikes in India - by launching swift, shallow offensives into that country with tank-heavy forces.

Pakistani military planners know that, given India's powerful tank forces, they would be spread too thin to halt India's Cold Start thrusts. Inevitably, many thrusts would make headway, capturing Pakistani border towns and creating the impression of an Indian victory. The rapidity of Cold Start offensives would overtake the deterrence time lines that had prevailed earlier. Now Indian war objectives might be met before Pakistan's General Headquarters (GHQ) at Rawalpindi could signal to New Delhi - halt, or we will cross the nuclear threshold, using traditional nuclear weapons of 15-20 kilotonnes (KT) or more, delivered by missiles over hundreds, even thousands, of kilometres. GHQ tightly controls these "strategic" weapons, so it takes time to ready and launch them, providing India's offensive forces the time to achieve their ends.

To speed up their nuclear response, Pakistan developed TNWs - relatively small nuclear weapons, usually below 2-3 kilotonnes, which are launched at battlefield targets like tank forces, at ranges of 60-100 kilometres, through short-range missiles. Due to the distances between the National Command Authority in Islamabad and the India-Pakistan border, TNWs would have to be located near the border and placed under local corps commanders. This "de-centralisation" renders TNWs vulnerable to theft or, even unauthorised use by renegade commanders. While Pakistan must be developing preferential access links (PALs) for its TNWs - software codes to restrict their operation to select commanders - these would take time to implement and perfect. And, in the confusion of a possible battlefield debacle, TNWs could well fall into the hands of unauthorised persons.

Such doomsday scenarios create the insecurity and uncertainty that suit Pakistan. Islamabad hopes that by posing a clear and present danger, it can force Washington's hand, extracting concessions - like a nuclear pact - that would allow Islamabad spin-doctors to claim Pakistani equivalence with India, a cherished strategic objective. Mr Sharif implicitly justified his TNWs by blaming a "hostile" India for forcing his military's hand. Addressing the US Institute of Peace, Mr Sharif declared that India's "dangerous military doctrines… will compel Pakistan to take several countermeasures to preserve credible deterrence." Nobody doubted he was talking about TNWs.

New Delhi has little control over Pakistan's decision to deploy TNWs. Nevertheless, Indian policymakers must now incorporate in our nuclear doctrine a realistic response to TNWs. Our nuclear doctrine - issued as a "draft nuclear doctrine" in August 1999, and modified slightly in a gazette notification on January 4, 2003 - pledges that India "will not be the first to initiate a nuclear strike, but will respond with massive retaliation should deterrence fail."

This implies India's default response to a Pakistani TNW strike - even against Indian troops on Pakistani soil - would be "massive retaliation", i.e. striking counter-value targets (towns and cities) in Pakistan with the full weight of India's arsenal. However, India's massive response would only damage, not destroy, Pakistan's nuclear arsenal. According to the well-respected Arms Control Association, India and Pakistan have about 120 nuclear weapons each. Even if India's "massive retaliation" destroys half of Pakistan's arsenal (and there is little surety of that), India would then have to absorb Pakistan's "second-strike" response, which would consist of about 60 nuclear bombs on Indian towns and cities. This would be an unimaginable blow. Yet Indian planners blithely go about their day as if the game would surely end with India's massive first strike.

Furthermore, few outside Lutyens New Delhi swallow the notion that India would respond to a single TNW by reducing Pakistan to a smoking ruin (albeit one that would shortly afterwards reduce India to the same state). Deterrence is a mind-game that one side quickly loses if the opponent does not believe that a threat will be executed.

Former Israeli Air Force chief, General David Ivry, explains deterrence through a formula - "Power (P) x Intent (I) = Deterrence (D)" - which regards deterrence as the product of two factors. The first, i.e. power, is not the actual capability of the deterring country (India), but what the country being deterred (Pakistan) believes its capability to be. If Pakistan believes, rightly or wrongly, that Indian missiles and aircraft cannot deliver nuclear weapons to Pakistani targets, the P in the equation will be zero, and deterrence will fall to zero too. The second factor, i.e. intent, represents the deterring country's "political and military willingness to use force". Regardless of India's actual strength and intent, if Pakistan believes that Indian policymakers do not have the stomach for obliterating Pakistan with a devastating "massive retaliation", the factor D, i.e. the deterrence value of the Indian arsenal again falls to zero.

That is why Israel has retaliated swiftly and overpoweringly to every provocation: pre-emptively smashing three Arab air forces in the Six Day War of 1967, rescuing hostages from an El Al airliner hijacked to Entebbe in 1976, pre-emptively destroying an Iraqi nuclear reactor at Osirak in 1981, taking out Syrian anti-aircraft missile sites in the Bekaa Valley in the Lebanon War of 1982, avenging the killing of three Israeli civilians in 1985 with punitive air-strikes on the Tunis headquarters of the Palestine Liberation Organisation, and striking and destroying a suspected nuclear facility in the Deir-ez-Zor region of Syria in 2007. Given Israel's willingness, even eagerness, to use pre-emptive or retaliatory force, its I-factor is extremely high, raising deterrence.

In contrast, New Delhi's forbearance pegs its I-factor close to zero. India's military was poised on the border for 10 months after Pakistani terrorists attacked India's parliament building in 2001, but New Delhi desisted from using force. Similar restraint was displayed after a terrorist squad sailed into Mumbai from Pakistan and killed 165 people in the infamous 26/11 attacks. New Delhi also shrank from retaliating against Pakistan in 1993; after 257 people were killed in serial bomb blasts in Mumbai; and in 2006, when a series of bombs in suburban trains in that city killed 187 Indian citizens. The last time India used force against Pakistan was in 1999, when troops from that country sought to change the border in Kargil.

Without passing judgment on such restraint - forbearance is often advisable - New Delhi's remarkable consistency in avoiding the use of force subtracts credibility from any Indian doctrine of massive retaliation. Pakistan's formal announcement of TNWs is a reminder for the Indian doctrine to incorporate flexible retaliation, which increases our planners' options, and complicates the opponents' calculations.

The Europe refugee crisis highlights how dominant industrial powers have singularly failed to live up to their promises

Skeletons in the cupboard

The Europe refugee crisis highlights how dominant industrial powers have singularly failed to live up to their promises and commitments on both political and economic fronts
Waves of refugees seeking shelter in Europe have enabled the hard right to capture power. On 18 October, Switzerland witnessed a rightward shift after the Swiss People’s Party registered major gains in the parliamentary elections. Avowedly right-wing parties, espousing anti-immigration policies, captured 101 of 200 seats in the Swiss lower house of parliament. The Alpine country, with over six million people, has been almost untouched by the exodus of refugees and economic migrants until now.
But the flood of images of hapless victims from Syria, Iraq, Afghanistan and parts of Africa queuing up at the borders of Austria and Germany helped the Schweizerische Volkspartei, or the Swiss People’s Party, increase its strength to 65—almost one-third of the Swiss lower house. The People’s Party made gains in the Swiss countryside by promising to pursue a strong asylum policy. The day-to-day business in the Swiss parliament is bound to be dominated by a mix of immigration and austerity policy initiatives.
Clearly, the emergence of the right in several European countries, with Poland being the latest to join the bandwagon, has more to do with the failed political and economic policies of the West. It is an open secret that the migrants seeking shelter in Europe are the innocent victims of the disastrous “shock-and-awe” policies pursued since 2001. “I apologize for some of the mistakes in planning and, certainly, our mistake in our understanding of what would happen once you removed the regime (in Iraq in 2001),” said Tony Blair, former British prime minister, in an interview to Fareed Zakaria on CNN on Sunday.
Because of the (former US president George) Bush-Blair policies, the world is paying a heavy price for the invasion of Afghanistan and Iraq. Several estimates suggest that hundreds of thousands of civilians were killed as part of the collateral damage, along with soldiers. These wars have created a perpetual cycle of chaos and insecurity across the world. It is highly unlikely that both Bush and Blair will ever stand trial on war crime charges. Leading social critic Noam Chomsky has repeatedly called for trying both Bush and Blair for their war crimes under the Nuremberg principles.
With immigration policies among the hottest political issues in many industrial countries, new efforts to open labour markets might appear ill-advised. But Geneva-based International Organization for Migration (IOM) has highlighted substantial gains that would accrue from migration. Despite the growing paranoia in many countries, including India, about economic migrants from neighbouring countries, IOM said migrants will bring diverse skills to the economy. “Diversity arising from the presence of migrants is shown to increase productivity and be of benefit to urban areas, if strategically managed,” IOM argued in its latest report Migrants and Cities: New Partnerships to Manage Mobility.
“As in informal settlements, immigrants play a vital role in creating economically vibrant, competitive cities as they contribute to a dynamic labour force and spur economic growth,” the agency maintained. Immigrants, according to IOM, are more likely to start businesses and create jobs in their cities. The report said “immigrants have added $3.7 trillion to the housing wealth in the US”.
In Switzerland, the canton of Vaud has the highest proportion of foreign residents (32%), after the cantons of Geneva and Basel City (which headquarters leading pharmaceutical companies Roche and Novartis). While Switzerland is not a member of the European Union (EU), it is a signatory to the Schengen visa-free travel zone. Nevertheless, Switzerland has imposed immigration limits on EU citizens following a referendum last year. More importantly, the movement of capital across borders has witnessed the elimination of barriers on a war-footing since the early 1990s. The developing countries all along argued that their comparative advantage lay in the movement of skilled and semi-skilled short-term services providers such as doctors, IT professionals, engineers and architects. When the Uruguay Round of trade negotiations concluded in 1993, trade in services came under the GATS (General Agreement on Trade in Services) scaffolding. Services trade was defined in the agreement as capable of supply from one World Trade Organization (WTO) member country to another (cross-border), by consumption overseas, by setting up commercial presence, and by the presence of “natural persons” in the territory of other WTO members.
The fourth possibility—generally referred to as “Mode 4” in trade terminology—can comprise the delivery of services like those of software professionals, architects or unskilled or semi-skilled labourers through temporary entry into another country. At the low-skill end of the spectrum, movement is related to labour shortages and wage differentials. At the other end, highly skilled managers or professionals can be required in relation, for instance, for commercial establishments where new entries to the market must ensure brand name compatibility.
While WTO members’ GATS schedules of commitments reveal varying levels of commitments under each of the modes of supply, the restrictions placed on “Mode 4”, for the temporary movement of personnel, are usually significantly more restrictive than those for the other three modes of supply.
There is a pronounced asymmetry between what the industrialized countries managed to secure for their movement of capital in “Mode 3”, relating to commercial presence, and what they were prepared to give under “Mode 4”. The failure to secure real labour access through “Mode 4” commitments stands out as an eyesore in globalization. Even the recent regional and bilateral trade initiatives, including the Trans-Pacific Partnership Agreement, have offered close to zero benefits for “Mode 4” supply of services.
In a nutshell, on both political and economic fronts, the dominant industrial powers have singularly failed to live up to their promises and commitments. Whether it is the reform of the United Nations, the Kyoto Protocol of common but differential commitments to address climate change, the much-promised developmental dividends of the Doha Development Agenda negotiations, and now the migrant crisis, they all point towards skeletons in the cupboard.

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UKPCS2012 FINAL RESULT SAMVEG IAS DEHRADUN

    Heartfelt congratulations to all my dear student .this was outstanding performance .this was possible due to ...