IMP News and Articles

8/9/2019 IMP News and Articles

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international relations. After all% foreign "olicy and national security are the e*clusive"rerogatives of the !entral government.Modis "ro"osition also came at a time when the -PA government seemed to cede aveto to states in the conduct of foreign "olicy towards the neighbours. Its kowtowing to!hennai led to a significant deterioration in Indias relations with Sri 6anka. )elhi yielded

to "ressures from 4est 5engal !hief Minister Mamata 5aner0ee and held back fromsigning the accord on the 'eesta waters and im"lementing the 6and 5oundaryAgreement #65A$ with )haka. If the -PAs weakness meant a""easing regional satra"sat the cost of national interest% Modi is calling for a different a""roach that makes Indiasborder "rovinces stakeholders in the dee"ening regional integration in South Asia. 8e iscoming to Saarc from the "ers"ective of domestic economic develo"ment. 8e alsobrings a measure of "olitical sensitivity to the e*traordinary costs im"osed on the "eo"leof Indias borderlands by the subcontinents Partition and the socialist isolationism of the"ast. Modi now sees transborder road and rail links% electricity grids and tourist circuitsas critical not 0ust to the "ros"erity of Indias border regions% but to the subcontinent as awhole. Indias diminished connectivity with its neighbours over the last seven decades

has "revented it from "artaking of the dynamic economic growth of Asia in general and!hina in "articular. In the west% it has limited Indias o"tions of overland im"ort of naturalresources like oil and natural gas% and e*"ort of Indian goods to the interior regions of

Asia. Not all border states% however% are hostile to the "ros"ect of greater economiccoo"eration with the neighbours. If 4est 5engal and 'amil Nadu "oint to the negativeside of the e7uation% many others have been enthusiastic "ro"onents of regionalism.Pun0ab% for e*am"le% has been an active cham"ion of transborder coo"eration. 'hebi"artisan sentiment in Amritsar has been marked by the active "ursuit of an o"ening to6ahore under the !ongress government led by Amarinder Singh and the Akali )algovernments led by the 5adals. 'his sentiment has been reci"rocated by civilianleaders and commercial classes in 6ahore. 'he "roblem here has been the a""arentresistance of the Pakistan army to let transborder coo"eration in the Pun0abs take"lace. It was not an accident that Modi referred to the current situation in Pun0ab% wherethe two sides have to send goods on circuitous sea routes rather than move them easilyacross the border. Sikkim has long been an active cham"ion of dee"er economiccoo"eration with 'ibet in !hina. 5ut it is )elhis security establishment that a""ears tobe resisting the case for full9fledged trade across the Sikkim9'ibet border. 'henortheastern states see connectivity with Southeast Asia as critical to their economic"ros"erity. 4hile )elhi talks of the Northeast as the gateway to Asia% it has done"recious little to im"rove trans"ort infrastructure within the region over the decades.Indias greatest o""ortunity to ra"idly advance regionalism is in the easternsubcontinent% and between it and ast Asia. 4hen the "rime minister travels to theNortheast over the weekend to review the security situation and launch newinfrastructure "ro0ects% he has an o""ortunity to e*"lain how the states in the easternregion can be "artners in the transformation of the subcontinent. Modi needs to mobilisebroader "ublic o"inion in favour of im"lementing the 65A with 5angladesh% e*"andingsecurity coo"eration with )haka and building transborder connectivity between Indiaand its eastern neighbours : Ne"al% 5hutan% 5angladesh and Myanmar. Pakistans"ositions are likely to remain an obstacle to breakthroughs on transfrontier connectivityin the northwestern marches of the subcontinent. Modi must% however% make sure that


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India does not s7uander the strategic o""ortunity to "romote subregional andtransregional coo"eration in the east.

..! a0a..

US cautiously optimistic about ties with India

Visiting U.S. Trade Representative Michael Froman said here on Monday that despitepositive developments such as the easing of the foreign direct investment cap in the

Defence sector, the U.S. remained cautiously optimistic a!out relations "ith #ndia asthe Modi government had raised tariffs.

Mr. Froman said the so$called %eace &lause, proposed in the recently concluded #ndo$U.S. 'orld Trade (rganisation )'T(* agreement, "ould depend on "hether #ndia+sfoodgrain !uffer programme met the conditions set in ali.

The 'T(+s ali pac-age included onerous conditions on ma-ing pu!lic details of foodsecurity programmes, "hich #ndia has so far not complied "ith.

'e have already seen some positive signs pro/ects approved, foreign e0uity caps in -ey

sectors such as defence and rail"ays lifted. ut "e have also seen certain tariffsincreased, and there is a long "ay to go on reform. So "e are optimistic, !ut "e arecautiously optimistic, Mr. Froman said. 1e "as addressing !usinessmen at aFederation of #ndia &ham!er of &ommerce and #ndustry event.

(n the 'T( agreement, Mr. Froman said 2s part of the deal to allo" the TradeFacilitation 2greement to !e fully implemented, "e agreed to intensify efforts to find apermanent solution to the food stoc-piling issue and eliminate any am!iguity in the alipac-age a!out the availa!ility of the 3so$called %eace &lause+ in the meantime, providedthat food stoc-piling programmes meet the conditions set in ali.

The !rea-through at the 'T(, said Mr. Froman, "ould not have !een possi!le "ithoutthe personal engagement of %resident arac- (!ama and %rime Minister 4arendraModi.

1e said the t"o leaders gave the partnership a mantra &halein Saath Saath For"ardTogether 'e 5o.

Indo-U.S. Trade Policy Forum revived


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Mr. Froman "ill meet &ommerce and #ndustry Minister 4irmala Sitharaman onTuesday for the first Trade %olicy Forum !et"een the t"o countries in more than fouryears.

So it+s another historic moment in "hat has !een an important year for relations

!et"een the United States and #ndia, Mr. Froman said.

1aving heard %rime Minister Modi spea- elo0uently of his Ma-e in #ndia, Digital#ndia, and Smart &ities initiatives, increasing investment in #ndia "ill !e critical as"ell, Mr. Froman said. Rigid local content re0uirements are li-ely to spa"n lesscompetitive industries, increase costs to producers and consumers and lo"er #ndia+seconomic "elfare.

Mr. Froman said enforcing a "orld$class intellectual property rights regime is in #ndia+sinterests. 1e said dealing directly "ith piracy, counterfeiting and compulsory licensing"ill !e critical if #ndia is to play a leadership role in the -no"ledge economy and!ecoming Digital #ndia.

'e have great interest in the ongoing revie" of #ndia+s #ntellectual %roperty Rights%olicy, said the U.S.T.R.

Ultimately, the most important factor determining the future evolution of our !ilateraleconomic relationship is the 0uality of the !usiness environment !ased on transparency,consistency, predicta!ility, said Mr. Froman.

verything you need to know1 6and swa" in offing with 5angladesh to end dis"utes

A Standing Committee on Monday urged Parliament to bring a bill to ratify the LandBoundary Agreement between India and Bangladesh.What is the genesis of the Land Boundary dispute?India and 5angladesh have a common land boundary of a""ro*imately ;%.? km. 'heIndia9ast Pakistan land boundary was determined as "er the adcliffe Award of @=;?.)is"utes arose out of some "rovisions in the award.What is the Land Boundary Agreement (LBA) of 1974?It was an agreement signed on May @>% @=?;% soon after the inde"endence of

5angladesh% to find a solution to the com"le* nature of border demarcation. 4hile5angladesh ratified the agreement% India didnt as it involved seceding territory andindicating these "recise areas on the ground. 'he @=?; agreement "rovided that Indiawould retain half of 5erubari -nion No. @ and in e*change 5angladesh would retainthe )ahagram and Angar"ota enclaves. 'he Agreement further "rovided that Indiawould lease in "er"etuity to 5angladesh a small area near )ahagram and Angar"ota#the &'in 5igha( corridor$ for the "ur"ose of connecting )ahagram and Angar"ota with5angladesh.


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READ 5ring bill to ratify Indo95angla boundary "act1 6and 5oundary Agreement to8ouse/inally the agreement was im"lemented in entirety% though India did not ratify% with thee*ce"tion of three issues "ertaining to un9demarcated land boundary of a""ro*imately>.@ km in three sectors : )aikhata9B> #4est 5engal$% Muhuri iver95elonia #'ri"ura$

and 6athitila9)umabari #Assam$C e*change of enclavesC and adverse "ossessions.What is the issue of en!"a#es?'he flawed nature of the Partition left @@@ Indian enclaves in 5angladesh #@?%@>Dacres$ and B@ 5angladesh enclaves in India #?%@@


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uro"ean !risis1

The U.S. economy finally seems to !e clim!ing out of the deep hole it

entered during the glo!al financial crisis. Unfortunately, 6urope, the

other epicenter of crisis, can+t say the same. Unemploymentin the euro

area is stalled at almost t"ice the U.S. level, "hile inflationis far !elo"

!oth the official target and outright deflation has !ecome a looming ris-.

#nvestors have ta-en notice 6uropeaninterest rateshave plunged, "ith

5erman long$term !onds yielding /ust 7.8 percent. That+s the -ind of

yield "e used to associate "ith 9apanese deflation, and mar-ets are

indeed signaling that they e:pect 6urope to e:perience its o"n lostdecade.

Paul Kruman

Macroeconomics% trade% health care% social "olicy and "olitics.

1ating 5ood 5overnment924 ;ove of &ar!on924 ;;
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Voodoo Time Machine924 degrees /ahrenheit$ over"re9industrial levels.

The effects of global warming and forecasts for greenhous gases, temperature and sea levels5ut e*"ectations were mostly disa""ointed.'he talks% which s"illed more than D< hours into overtime% got bogged down early on ina fight over JdifferentiationJ:how to divide res"onsibility for carbon cuts between richand "oor nations.'he outcome% said the -S9based -nion of !oncerned Scientists% reflected Jthe bare

minimumJ to kee" negotiations on the road to inking a climate9saving "act in Paris ne*t)ecember that will have the "ledges at its heart.ather than im"osing a re7uirement% the te*t merely JurgesJ "arties to Jconsiderincluding an ada"tation com"onentJ in their "ledges% and on finance similarly JurgesJdevelo"ed countries to "rovide su""ort.In a nod to "oor country concerns% the new te*t did reintroduce a reference to Jcommonbut differentiated res"onsibilitiesJ that had been dro""ed from earlier drafts.
http://phys.org/tags/climate/http://phys.org/tags/extreme+weather/http://phys.org/tags/climate+talks/http://phys.org/tags/global+warming/http://phys.org/tags/climate/http://phys.org/tags/extreme+weather/http://phys.org/tags/climate+talks/http://phys.org/tags/global+warming/


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0o"iti!a" epedien!y 23on2

J'he "ackage... "uts in "lace a draft of a Paris agreement without narrowing down any

of the difficult "olitical issues that have "lagued global efforts to address climate changefor more than < years%J said 3*fam.J'he deal does not re7uire that the initial "ledges "arties make in


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#he surprise agreement has brightened prospects for a climate deal in !aris next year

&hina and the United States have agreed on a timeta!le to limit emission of greenhousegases E a decision that "ill impose fresh pressure on #ndia not to o!struct a !indingtreaty on climate change ne:t year.

The !rea-through "as achieved during tal-s !et"een visiting U.S. %resident arac-(!ama and his &hinese counterpart, Oi 9inping, ending a C7$year discord !et"een the"orld+s t"o leading economies on ho" to com!at climate change. #n a /ointannouncement on 'ednesday, the U.S. agreed to reduce !y C7C= its emission ofgreenhouse gases !y CH per cent to C< per cent !elo" its C77= level. &hina stated itsintent to pea- emissions of car!on dio:ide in C7J7, if not earlier. #t also agreed to raisethe share of non$fossil fuels to C7 per cent, in its primary energy mi:, in the ne:t ;Hyears. This "ould entail &hina shifting to"ards clean energy generated !y nuclear, "ind,solar and such Gero$emitting resources

ig !rea-through in ei/ing

#o address climate change, )ndia has committed itself to a -.*-/ per cent reduction in

intensity of carbon emissions by -.-., but the international community will wantmore

U.S. %resident arac- (!ama and &hinese %resident Oi 9inping have /ustsigned ahistoric !ilateral accord on climate changeand clean energy cooperation in ei/ing. Thisaccord "ill have impacts in the run$up to the %aris &onference in Decem!er C7;= "henthe "orld community is e:pected to clinch a ne" agreement to com!at glo!al "arming.The agreement "as in the "or-s no dou!t, !ut it certainly came sooner than e:pected.2nother agreement on trade in technology$intensive industries has !een signed and thishas great relevance for the 'orld Trade (rganiGation )'T(*. 'ith these t"o accords,the U.S. and &hina have signalled that they "ill influence multilateral outcomes through

their !ilateral agreements.

% historic accord

The accord is historic for a num!er of reasons. First, &hina has pu!licly announced thatits emissions of car!on dio:ide "ill pea- !y C7J7 and that the intention is to have thepea- year earlier. Second, &hina "ill increase the non$fossil fuel share )mainly nuclear,solar and "ind* of all energy to around C7 per cent !y C7J7. Third, the U.S. "ill cut its
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5D%* !elo" C77= levels !y C7C7 and there should really !e no pro!lem to unveil plansfor C7C= and C7J7 as "ell. This "ould !e in -eeping "ith domestic imperatives as "ell.

The %lanning &ommission+s e:pert group on lo" car!on gro"th strategy had in its finalreport su!mitted in 2pril C7;? pro/ected that the contri!ution of solar, "ind and

!iomass to electricity supply can realistically increase from the present H per cent to ;


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integrated is fine in theory, !ut in practice there are choices to !e made, comple:ities to!e unravelled, contradictions to !e understood and conflicts to !e managed. There "ill!e trade$offs and these have to !e made pu!lic and transparent. The !alance of gro"thand ecology calls for great nuancing and sensitivity "hich, alas, has not yet !een inevidence.

The Republics guest: By inviting Obama, Modi has signalled his belief in the US role in

transforming ndia

The choice of the Republic !ay chief guest has al"ays been a strong indicator of ndias

foreign policy preferences# $rom a mar%ed partiality for the &third "orld', recent ndian

governments have graduated to using Republic !ay to further strategic and economicinterests rather than ideological symbolism ( "itness the invitations to Shin)o *be, Saudi

+ing *bdullah and +a)a%h president ursultan a)arbayev in recent years#

But inviting the US president has al"ays been a bridge too far# * second summit "ith

Barac% Obama in si- months sho"s only one thing ( arendra Modi believes the US has a

big role to play in his plans for ndia# n this, he is probably playing to a different drummer

than both the foreign policy establishment of South Bloc% and the phalan- of the ndian

strategic community in the national capital# n fact, M.* clearly stated this "as a

&personal initiative' by the /M, indicating they had been thin%ing on very different lines#

$or long, both M.* and the e-perts have believed that "hile its important to engage, its

e0ually prudent to %eep *merica at arms length because they are per1dious, play fast and

loose "ith us, cosy up to /a%istan behind our bac%s, plot a 234 "ith 5hina, s"amp our

brains and our mar%ets, s0uee)e us on impossible things li%e climate change, remain an

unreliable defence supplier# They have devised all manner of bu))"ords ranging from

&non3alignment 4#6 to &strategic autonomy' to e-plain a collective insecurity about the

US#

Mean"hile, the rest of ndia has been voting "ith its feet# More ndian families send their

children for higher studies there, more ndian companies do business there than virtually

any other part of the "orld# /resumably, as the archetypal &outsider' arendra Modi is

much more attuned to the &foreign' interests of the larger ndian population than the

"orld of e" !elhi, and perhaps more secure in his o"n political space#


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ts fair to say that the US may be guilty of all that its accused of and li%ely more# t may be

e0ually fair to say that the &strategic' partnership bet"een e" !elhi and 7ashington

can sometimes be too big a burden, because often ndias interests are at odds "ith USs#

* glance at Modis September visit ma%es it clear that he is "or%ing to"ards aligning USinterests to ndias development priorities# On the larger canvas, Modis message to the US

echoes both *tal Bihari 8a9payee and Manmohan Singh, particularly the latter, that ndias

rise is in US interest# 8a9payee raised eyebro"s "ith his use of the term &natural allies'

"hile Manmohan Singh "as pilloried by his o"n party "hen he declared to 2eorge 7

Bush that the ndian people &loved' him#

There is another practical reason for the /M to %eep up the pressure "ith another summit

in 0uic% succession# ndian and *merican bureaucracies are similar in that they are

reluctant bedfello"s, e0ually intransigent and much happier to "or% "ith others than

each other# But a summit forces them to rac% up &deliverables' and the September meeting

thre" up a number of these ( ne" standards for s%ill development, smart cities,

investment vehicles, all on this governments agenda# ndia is in a hurry and if a summit is

"hat it ta%es, so be it#

Modi has sho"n t"o things# $irst, he is perfectly "illing to let ndia be isolated globally on

issues that matter, li%e on the T$* recently# This upends an ndian mantra ( that "e

should not stay isolated internationally, "hich has, in the past, led us to ta%e some strange

decisions# Second, he has sho"n the e-ibility necessary to carry out international deal3

ma%ing on a large scale#

The US35hina climate deal struc% last "ee% holds huge portents for ndia# t is also a

uni0ue opportunity for ndia to 1- its bro%en energy system# ndia ought to be loo%ing for

a big tic%et energy deal before the /aris climate change summit ne-t !ecember# This could

involve a deal on solar energy, 1-ing the coal mess, and clearing the nuclear liability hassle

that has completely stopped the progress of nuclear energy in ndia# The last has the

potential to be big ( ndia straightens this mess, and in return "e should leverage entryinto the non3proliferation regimes# That "ill open ndias access to the %ind of high

technology it needs for leapfrogging development cycles#

t is clear the /M is intent on involving the "orld to transform ndia# *nd therefore its

time for him to step on the gas for all the things he needs to do in this country to ma%e it


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rashtra de!ate, spea-ing a!out the cultural and religious ties !ut "ithout !ringing inthe Madhesi lin-ages and promising accelerated cooperation and generous terms for4epal+s po"er e:ports to #ndia. 6ven though the earlier IC=7 million line of credit "asyet to !e e:hausted, a generous ne" line of credit of a !illion dollars "as announced.

Focus on development

%ositive momentum generated !y the visit "as sustained the t"o governments signed a%o"er Trade 2greement )%T2* "hile 5MR also concluded a %ro/ect Development2greement )%D2* regarding a B77 M' hydel pro/ect on Upper arnali. Much "or-needs to !e done on !oth !efore either can !e operationalised, !ut their conclusion, after!eing held up for years, sho"ed that !oth governments are -een to move for"ard. (ut ofthe C< survey licences granted to private entities over the last decade, amounting to atotal of eastDeveloped &ountry+ to a 3Developing &ountry+ !y C7CC, 4epal "ould need an investmentof nearly I;77 !illion in infrastructure, of "hich more than t"o$thirds "ill have to comefrom private sector and multilateral institutions. The 2sian Development an- )2D*and the #nternational Finance &orporation )#F&* plan to issue long$term !ondsamounting to a !illion dollars each in local currency in order to provide greater depth tothe capital mar-et. There is tal- a!out the need to create a ne" financial institution tounderta-e infrastructure financing. 'hile all the !uGG is not due to Mr. Modi+s first visit,it certainly added to it !ecause 4epal felt that #ndia "as politically engaged, "ith a ne"decisive leader at the helm of affairs.

*uic"sand o) +epali politics

'anting to !uild up on his successful visit in 2ugust, Mr. Modi had "anted to visit9ana-pur )site of the historic 9ana-i Mandir*, >um!ini )!irthplace of 5autam uddha*and Mu-tinath )Vishnu temple*, in addition to the S22R& engagements in athmandu.9ana-pur !orders Sitamarhi )ihar* in #ndia and >um!ini is !arely CC -m from the#ndian !order. 2t !oth sites, Mr. Modi sought to address pu!lic gatherings "hich "ouldhave attracted huge num!ers, including from #ndian !order to"ns and villages.#nitiatives regarding !order connectivity, the tourism potential of the 2yodhya$9ana-pur circuit and the >um!ini$odhgaya$Sarnath circuit, and development ofirrigation in the Terai "hich is the !read!as-et of 4epal "ould have resonated "ith the


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audience and presented Mr. Modi as the tallest leader in the region. This evidently made4epali political leaders uneasy. 4epal+s government has therefore cited securityconcerns to turn do"n the idea of pu!lic gatherings, proposing civic receptions instead"here 4epali leaders "ould share the platform and Mr. Modi+s interaction "ould !elimited to )selected* local community leaders.

The -ey reason is the deep$rooted suspicion a!out the #ndian agenda "hich surfacestime and again, particularly "hen domestic politics deteriorates into a polarisingslugfest. The &onstitutional %olitical Dialogue and &onsensus &ommittee )&%D&&*chaired !y Maoist leader Dr. a!uram hattarai and mandated !y the &2 to resolvedisputed issues is at an impasse. Sensing a hardening of positions all around on theissue of 3federalism+, Mr. hattarai has threatened to 0uit more than once. Mean"hilethe coalition government )4epali &ongress or 4&, UM> and Rastriya %ra/atantra %artyor R%%* that en/oys a t"o$thirds ma/ority in the &2 has said that it "ill push its proposalfor a federal 4epal "ith seven provinces to a vote, if there is no consensus. Maoistsresent this !rin-manship and "ould li-e to tap into Madhesi resentment "ho areunhappy a!out the fact that not only are they !eing presented "ith a divided Madhes!ut the districts containing the osi, 5anda- and arnali river !asins have !eene:cluded from the t"o Madhesi provinces proposed.

The ruling coalition parties )4&, UM> and R%%* have traditionally !een dominated !ythe pahadi ahuns and &hettris "ho have little sympathy for federalism, a demandassociated "ith Maoists and Madhesis. oth these groups have fractured from threeparties in C778, Madhesis no" have over a doGen and the ruling coalition could "elltempt some "ith offers of ministerial positions. Maoist leader %ushpa amal Dahal%rachanda is desperate, loo-ing for a role after the ne" &onstitution is promulgated andready to play spoiler in the !argain. Mr. %rachanda+s hold "ea-ened "hen his colleagueDr. hattarai !ecame the %rime Minister in C7;; and the hard line faction led !y Mohan

aidya split. The aidya group is again in the throes of a split "ith 4etra i-ram &hand"anting to adopt a more aggressive position. Mr. %rachanda is eyeing this "ith interestas it might open the "ay to get a "ea-ened Mr. aidya !ac- into the fold, there!yincreasing his strength (is**(isMr. hattarai.

Mr. %rachanda is not alone in his manoeuvrings for a role after the &onstitution isconcluded. 'hile the &2 "ill continue till C7;8 )it "as elected for a four$year term inC7;J*, the positions of president, vice$president and prime minister "ill open up. %rimeMinister Sushil oirala has announced that he "ill step do"n once the tas- of&onstitution drafting is completed. >eaders "ithin the 4& and UM> are also positioningthemselves accordingly.

Under such circumstances, if the &onstitution is pushed through "ith a t"o$thirdsma/ority, it can lead to the alienation of large sections of the population. The Madhesis"ould feel let do"n !y #ndia and the 9an/ati groups "ould gravitate to hard line Maoistpositions. The challenge is therefore to develop a !roader consensus than rely on t"othirds. #n the past, faced "ith such deadlines, the political leaders "ould /ust -ic- the!all further do"n the road and e:tend the deadline. ut this has !een done too often


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and the 4epali people are getting impatient. They "ant the &onstitution so that they canget on "ith the economic agenda.

#odis challene

Mr. Modi "ill face a tric-y and polarised political environment in 4epal this time. 1e"ill have to dra" a fine line in terms of remaining politically engaged "ith all groupsand yet -eep the focus on the economic issues "here he can promise, and should ensure,0uic- delivery. 1e "ill need to convey the convergence of interests !et"een the peopleof the t"o countries "hile !eing generous to 4epal. 1e "ill need to reassure #ndia+sfriends "ithout appearing to promote their interests. 1e "ill need to go !eyond "hat hesaid last time and still e:pand on the positive sentiment generated in 2ugust. 1e "illneed to adopt an open style of diplomacy so that, in a !rea- from the past, 4epalinationalism is not reduced to anti$#ndianism.

&Rakesh Sood, the !rime Minister0s Special 2n(oy for 3isarmament and Non*

!roliferation till May -.45, is a former Ambassador to Nepal$ 2*mail6 ra-eshsoodC77;Pyahoo.com+

#ndia may end support to %alestine at U.4

3elhi0s stance to factor in ties with #el A(i(

#n "hat could amount to a tectonic shift in the country+s foreign policy, the Modigovernment is loo-ing at altering #ndia+s supporting vote for the %alestinian cause at the

United 4ations to one of a!stention.

T"o sources "ithin the government confirmed to #he 7induthat the change, "hich "ill!e a fundamental departure from #ndia+s support to the cause of a %alestinian state, "asunder consideration.

>i-e other foreign policy issues, the Modi government is loo-ing at #ndia+s votingrecord at the United 4ations on the %alestinian issue, a government source told The1indu. The change only needs an administrative nod, the second source said.

Despite the gro"ing defence and diplomatic ties "ith #srael, the U%2 government,

"hich /un-ed traditional ally #ran to vote "ith the United States at the #nternational2tomic 6nergy 2gency in C77=, had !aul-ed at ma-ing any change in #ndia+s support tothe %alestinians.

6ven former %rime Minister 2.. Va/payee+s government, "hich invited #sraeli %rimeMinister 2riel Sharon to #ndia in C77J, did not amend #ndia+s voting record at the U.4.


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#ndia+s stance at the U.4. has !een an irritant in #ndo$#sraeli relations, "ith Tel 2vivfrustrated that close !onds had not resulted in any change in the stance on %alestine.

2 senior #sraeli interlocutor told a visiting #ndian 6:ternal 2ffairs Minister some timeago that 4e" Delhi treated Tel 2viv li-e a mistress Q !y -eeping the !ilateral

relationship a"ay from the pu!lic gaGe. This re$e:amination of #ndia+s voting stance "illcome as s"eet music to #sraeli ears /ust as it "ill raise concerns in 'est 2sian capitalsa!out the future course of #ndian foreign policy.

s /M Modi follo"ing the =Manmohan Singh !octrine>

By: Sanjaya Baru

.ven though he made very disparaging remar%s about arendra Modi at his last press

conference in ?anuary 46


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"ith /a%istan, and more communicative# 5onse0uently, he has more than made up for the

"asted second half of the second U/* government#

Following Foreign Policy

The political sha%e3up in ndia, the revival of con1dence in the economy and, above all, the

1rm leadership style of a popularly3elected prime minister has, "ithout doubt, revived the

=ndia Story# *part from some interesting departures from norm, including t"eeting the

ne"s of an invitation to US /resident Barac% Obama to be chief guest at the Republic !ay

/arade in ?anuary, there have been fe" signi1cant departures from inherited foreign

policy e-cept "ith respect to /a%istan and the US#

Modis approach to the ndo3/aci1c region, to most of South and 7est *sia, to ma9or

po"ers including Russia and the .U is by and large similar to Singhs# ;e has certainly beenbolder in befriending ?apan# But the initial outreach "as the initiative of Manmohan Singh,

ta%en in the face of internal political and bureaucratic nervousness on the part of those

"ho felt this may upset 5hina#

*s for the US, after 466, the political leadership in both countries turned a"ay from each

other# The relationship "ent into lo" gear# That it had, in fact, gone into disarray ( a fact

many in both governments "ere denying ( became all too clear "hen the !evyani

+hobragade 1asco hit the headlines in !ecember 46


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*n important test for both administrations "ould be the 1nal resolution of the civil

nuclear liability issue# Recall the fact that "hile the original version of the nuclear liability

Bill, drafted by U/*3 in consultation "ith ndias nuclear e0uipment industry, had

satis1ed all concerned, including certain sections of the B?/, it "as an alliance of the B?/s

erst"hile leadership and the Eeft $ront that forced a redrafting of the la"#

The 5ongress chose to abandon its /M and allo"ed the Opposition to redraft the Bill#

Sushma S"ara9 "as at the forefront of the opposition to the U/*s original version# *s

e-ternal affairs minister, she "ill no" have to 1nd a "ay out of the impasse she helped

create#

Be it the nuclear liability la", the insurance Bill, the ta- and patent la"s and a variety of

other such issues that bedevil ndia3US relations, Modi and Singh "ould 1nd themselves

on the same side# 7hile Singh could not do "hat he "ished to because of his political

isolation in U/* , it remains to be seen if Modi can end the domestic political impasse and

restore momentum to the US ndia relationship#

'an 0a tae on a"i$an?avi ,oshi% )ec% D%


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state actor. 'here are two distinct grou"s that are most "owerful and active% the Afghan'aliban and the ''P. 'hen there is the 'ehreek9e9'aliban 5aluchistan which wascreated by the ISI to counter the 5aluch nationalists fighting for their inde"endence.

And there is the Pun0abi 'aliban which consists of the 6ashkar9e9'aiba% ,aish9e9

Mohammed% 6ashkar9e9,hangvi% Si"ah9e9Sahiba and others that have s"routed to takeon different targets. 'he first two are aimed at India% while the last two are aimed at theShia community.

'alibans origins are very much in the state agencies and hence it cannot be called anon9state actor% "articularly the Afghan 'aliban which owes its survival and success tothe Pakistan state.

'he ''P was launched in )ecember


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class that is widely seen as corru"t and mercenary. 'he corru"tion of the clericshowever% both moral and material% can neither be e*"osed nor challenged by the mediaor the state.

'hirdly% the failed education system has created thousands of madrasas with millions of

'alibs being "roduced every year. A Pak Ministry of Interior Affairs re"ort stated thatEthere are


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the "rime minister could have sei+ed the "olitical initiative with sim"le gestures like% &Iwill answer all 7uestions in both 8ouses of Parliament for at least one hour a week.( A"rime ministers 7uestion hour would have restored the dignity of Parliament. It wouldnot have given the im"ression that he is running away. And if% after that% the 3""ositionwere still obtuse% at least legitimacy would be on the governments side. 'here has not

been a single ma0or gesture by the government to restore institutional credibility. 'he"rime minister rightly said that countries with ideologies falter% those with values endure.8e should have added1 'hose with strong institutions thrive.Second% the government needs to make a transition from &we are a too9clever9by9halflawyers government( to a "eo"les government. 'his hubris did the last government in.'he land ac7uisition act needed modification% "articularly on "rocedures. 5ut the natureof the "ro"osed modifications is a reci"e for future "roblems. /irst% the social im"actassessment #SIA$ needed rationalisation. 5ut this could have been done by"romulgating rules. It did not need an ordinance. Second% the e*em"tion granted toPPP "ro0ects will make the act liable to misuse. 'he courts will ste" in and we will beback to s7uare one. A ty"ical government manoeuvre1 Preserve the form of the SIA but

hollow it out. And third% the ordinance does not clean u" anomalies in the act. #An oddone is that if the "ro"erty of a minority education institution is ac7uired% the market valueshould be such that it would not abrogate the right of the institution to function% but thesame "rotection does not a""ly to ma0ority9run educational institutions. So% as a ,ain%my "rivate institution has more "rotection than as a 8indu.$ 'he intent seems to havebeen more to create a s"lash. As my colleague% Partha Mukho"adhyay% colourfully "utsit% this government seems to believe not in M2N2A% but 62A #legal em"loymentgeneration acts$

'he third transition is thinking about ends and means differently in "ublic finance./inancial "rudence and macroeconomic stability is a good thing. 5ut making India

com"etitive will re7uire at least four wheels1 infrastructure and energy% human ca"ital%low morbidity and good regulation. ight now% we have about half a wheel. 'here issome activity in infrastructure and energy% though without credible financing "lans. 'heministry of human resource develo"ment is a black hole% more intent on destroying thancreating. 8ealth has always been low "riority and we have not even begun to reckonwith its costs to the economy. 'here are some interesting moves on regulation. 5utbuilding a credible state that can generate com"liance will re7uire massive investment: from information systems to the 0udiciary% from regulatory ca"acity to technicalknowledge. 'he state will need to s"end on all the areas it needs to get into. 4e havenot seen a budget in years that has a credible financial "lan to get all the four wheelsgoing. Ouite the contrary% the administrative form that budgetary com"ression takesusually means even less rationality in e*"enditure. In the short run% it will also beim"ossible to raise growth without "ublic investment. 6et the budget serve the needs ofthe economy% not the economy the needs of the budget. 4e need to make the transitionfrom crony ca"italism to well9regulated ca"italism. 'he inherited mess has left its im"rinton every single institution% including the banking sector. -nder "ressure% some"rosecutions are "roceeding. 5ut the government knows that chasing black money withs"ecial investigation teams is another one of those delusional too9clever9by9halfsolutions. It needs to create an institutional architecture that can create sensible


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3f course% it is well known that the N)A lacks ma0ority in a0ya Sabha. 5ut then why itdid not call for a 0oint session where it claims it has ma0ority. 'hat a devious game wasdeliberately being "layed by the government in resorting to ordinances is clear from the-nion finance ministers o"en declaration #during the "arliament session$ that &if theo""osition did not relent% the government was ready to take a 0oint session route( Q

notwithstanding this boast the government o"ted for undemocratic route of ordinances.It is well known that there are serious differences in Parliament about the very motive of"assing the amendments allowing increased /)I in the insurance sector Q that is whythe insurance bill has been held u" for nearly si* years Q 5,P ironically was thevociferous o""onent in the last 6ok Sabha.

'he 3rdinance regarding auction of coal blocks is even more mischievous. I canunderstand that the blocks having been cancelled by the Su"reme !ourt last year andthey had to be auctioned afresh. 5ut under the cover of re9auctioning% mischievousste"s are being taken to erode the "rovisions of !oal Mines #Nationalisation Act% @=?D$which "rovided that all rights and titles of coal mines shall stand vested in the !entral

government. It also "rovides that no "erson other than the !entre or a governmentcom"any or a cor"oration managed or controlled by it can engage in mining. I amconvinced that union government deliberately avoided introducing the 5ill in a0yaSabha.

I say this because by the ordinance% the !entre has surre"titiously indirectly amendedthe Act. It knew very well that for N)A government to reo"en nationalisation by a debatein the "arliament would make it run for cover and an o"en charge of serving the interestof its election fund donors.

'he ordinance is a half clever sly trick to bring "rivate sector in coal mining after a la"seof over ;< years. Peo"le in coal business have e*"lained that the ordinance e*"licitlyallows "rivate9"ublic 0oint ventures and "ermits commercial mining by the stategovernment com"anies% activities which the Su"reme !ourt had said were illegal. 'hiswill benefit favourite com"anies of Modi government that are already "artnered by stategovernment com"anies which lack mining e*"ertise 9 an indirect method to scuttle thecoal mining nationalisation law.

'he ordinance regarding 6and Ac7uisition is the limit of hy"ocrisy and shows totalcontem"t for Parliamentary system. 'his Act is the result of years of massive agitationby organisations like Narmada 5achao Andolan to get some 0ustice to the evictees ofland taken for the benefit of big business and industrialists. Surely% this unanimouslegislation by the "revious "arliament can not be set at naught by an e*ecutiveordinance Q the irony being that the Act was a""roved in the "revious 6ok Sabha by a"arliamentary committee headed by the Present 6ok Sabha s"eaker. 'he "uerilee*cuse that it was necessitated by kee"ing e*em"tion of atomic "lants from the"rovision of the Act is "hony because this would have re7uired only amendment ofSection @


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enchanted com"ensation which was to benefit the millions of "oor and dis"ossessed.4hy does not 5,P o"enly admit that it owes a debt to big business by dis"lacing lakhsof farmers U "oor residents so that it could o"en u" )elhi95ombay corridors for thecor"orate sector for which Modis first visit to ,a"an was the "recursor. In fact% theordinance s"ecifically em"owers the government to e*clude industrial corridors from the

a""licability of the Act.

0re@ !"arifi!ation'here are re"orts that President Pranab Mukher0ee sought clarification from some!entral ministers when ordinances came for his signature. 5ut then% it was only "artobligation under the constitution when issuing the ordinance. 'he real stake holders Qthe millions of "oor farming "o"ulation 9 needed to be consulted and heard through theirwell established re"resentatives "rior to issuing the ordinance es"ecially when theseorganisations had also re"resented to you seeking a meeting.

'he ordinance making "ower is the legacy of 5ritish colonialism. 'his should have no

"lace in free India% nor is it to be found in any other democratic countries. 5ut the Modigovernment is flouting it by having already readied an ordinance on Arbitration Act #whaturgency can "ossibly e*"lain such a bi+arre moveG$.

'he Su"reme !ourt has very strongly commented as in @=F? that the ordinance making"ower &is in the nature of emergency "ower to take action when the legislature is not insession. 'his "ower is to be used to meet an e*traordinary situation and it can not beallowed to be( &"erverted to serve "olitical ends(.

'hankfully% Modis undemocratic e*ercise of "ower is being resisted by the trade unionswho have decided to go on a token strike Q the !oal Mine 4orkers -nion and othertrade unions have also decided to hold a 0oint demonstration and "rotest before theParliament when it holds its ne*t session.

#The writer is retired chief justice of elhi !igh Court$

*fter Obamas visit, ndia3US relations must not be allo"ed to drift again

ndias relations "ith the US, for too long reminiscent of a roller3coaster ride, "ill reach a

high point later this month# /resident Barac% Obama appearing as chief guest in the

revie"ing stand of the Republic !ay parade "ill not only mar% a rebound from the dar%

days of the +hobragade affair, but "ill send a message to the "orld F a message that "ill

have particular resonance in Bei9ing#


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The signi1cance of a sitting president ma%ing a second of1cial visit to the country is a

stri%ing political symbol, 9ust as the sight of *merican3made aircraft in ndian tri3colour

ying over Ra9path symbolises deepening ndo3US military ties# But after the celebrations,

policyma%ers from both sides "ill have the hard tas% of ensuring that the roller3coaster

does not plunge bac% do"n"ards, as it has in the past# The relationship is too importantfor both countries security and prosperity to be allo"ed to drift yet again#

$ortunately, the conditions for moving the relationship for"ard are better today than at

any time in the recent past# /rime Minister Modis decision to 0uic%ly move past

unpleasant episodes and build a strong relationship is matched by the Obama

administrations interests, strongly bac%ed by a Republican3dominated 5ongress, to

e-pand strategic cooperation# ndias "illingness to play hardball "ith 5hina

Gdemonstrated during the border confrontation that coincided "ith /resident Hi ?inpings

visit to ndiaI and a common interest in a peaceful and rule3based order in .ast *sia

provide a favourable atmosphere for strengthened collaboration#

The economic omens are good too# The rene"al of the


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nuclear liability legislation has frustrated US industry, "hich had high hopes of investment

opportunities follo"ing the signing of the historic 466K civil nuclear agreement# ndias

restrictions on $! in multi3brand retail, its obstruction of trade facilitation agreement at

7TO, its obdurate position on intellectual property issue and myriad barriers to

investment had the cumulative effect of stunting economic cooperation "ith the US andother prospective global investors#

Since ta%ing over, Modi has resolved the difference over the 7TO agreement and has

ta%en the 1rst steps to"ards reaching a deal on climate change F thus removing t"o ma9or

impediments in relations "ith 7ashington# * sle" of ndian measures, including

e-panding $! in defence, construction, rail"ays and the insurance sector have been

similarly helpful in improving the investment climate# The t"o countries signed a bilateral

agreement this "ee% to cooperate on facilitating capital mar%et development conducive

to 1nancing investment in various sectors, and "or%ing to overcome any obstacles to such

investment#

* %ey area "here additional efforts "ill be needed to remove impediments to e-panded

investment is in the nuclear liability la"# $ormulated under the shado" of the


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re0uired to be completed by ovember < "ill need to be seen against this remaining

budget of less than


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account develo"ment needs and international commitments.( 'he "anels 0ob% thus% was0ust to make the underlying "olicy orientation more e*"licit.

In a nutshell% the draft "olicy is based on the following assum"tions1 IP is essential forthe countrys growthC the current laws are good enoughC most of the benefits of IP

"rotection are en0oyed by overseas entities #es"ecially in the case of "atents where ?B"er cent of the filings are by foreign entities$.

'he "remise itself will be music to the ears of the "ro"onents of a stronger IP regime%es"ecially governments such as the -S% as the draft ignores an e7ually strong o""osingview% from civil society grou"s% some Sangh Parivar constituents and others% that IP"rotection can be counter9"roductive to the develo"ment needs of the country.

'he "ro"onents of IP will be ha""y that the draft talks about a review of e*isting IP laws.'he global "harmaceutical industry% for instance% has been seeking a review of thefle*ibilities built into Indias "atent law as it denies them "atent "rotection for

incremental innovations. 'he willingness to engage actively in the negotiation ofinternational treaties and "acts is another area that will be of interest to the globalresearch9oriented industries that are trying to e*tend the IP "rotection linked markete*clusivity in India.

'he draft "olicy seeks to introduce a conce"t of &"etty "atents( or &utility "atents( toenable small inventions #or &0ugaad( for which India is well known$ to get "atent"rotection. 'he aim is to "rotect the inventions of small and medium scale enter"rises inthe unorganised and informal sectors.

'he develo"ment is worth watching. 3n D< Se"tember% Prime Minister Modi and -SPresident 5arack 3bama issued a 0oint statement that stressed the need to fosterinnovation% through IP "rotection. 3n > ,anuary when 3bama meets Modi as chiefguest of Indias e"ublic )ay celebration% the draft IP "olicy will be one concretedevelo"ment after their first meeting.

More than the contents of the draft% which may undergo changes before the finalversion% the timing and the swiftness in action are interesting at the moment.

!limate Negotiators each )eal In 6ima

nvironment Minister Prakash ,avadekar said all of Indias concerns have been

addressed

'V' SIR 1 A T A T A


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After a marathon -N climate summit in the Peruvian ca"ital of 6ima% President of themeeting Manuel Pulgar9idal said delegates had a""roved a broad blue"rint fornegotiations leading u" to a deal in


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It reads that any Paris


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)elhi wants develo"ed world held res"onsible for greenhouse gas emissionsC


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Mo/ as ecologically sensitive +one.

It a""ears the government has decided to ado"t the Kasturirangan e"ort whileallowing for state autonomy in eco9sensitive areas% 'he 2reen 'ribunal has acce"tedthe !entres move to 0unk the Madhav 2adgil re"ort on the 4estern 2hats and ado"t

the Kasturirangan e"ort% under which the draft of eco9sensitive +ones has alreadybeen "ublished by the Mo/. 'he court has maintained that no environment clearancebe given to fresh "ro0ects in the region till a final notification is made marking the eco9sensitive areas. In an affidavit filed before the N2' earlier in the month% Mo/ had saidstates have the freedom to demarcate eco9sensitive areas through "hysical verification%which will be e*amined by the -nion government before any action is taken.

And one ho"es that the new governments drive towards develo"ment will come to therescue and resolve the hitherto unsolvable balance between environment and industry%be it in Kerala or 2oa% Maharashtra or 2u0arat% between "lantation owners and minersor any of the numerous other stake9holders.

8aving earlier re"rimanded the nodal green ministry for ambiguity and lack of clarity onthe issue% the court in its final order by the 2reen 'ribunal noted1 &...only "ious ho"e wee*"ress in the order is that the ministry should act with utmost e*"editiousness andensure that the interests of the states% individuals and all concerned stakeholders arenot 0eo"ardised any longer.( It is clear with this order that the court has agreed not tocontest any action by Mo/% as long as it is taken 7uickly and in kee"ing with thenvironment Protection Act of @=F>.

&... It is now e*clusively for the Mo/ to determine and decide the rival contentions%(says the N2' order. 8ere it is im"ortant to remember that "rior attem"ts to do so havefailed. Soon after the first committee% set u" to look into the matter% under thechairmanshi" of )r Madhav 2adgil submitted its re"ort% an all9out war broke outbetween all the stakeholders% with no one being able to agree to the others "oint ofview. 5e it industrialists% farmers% miners% state governments or even environmentalists.'hus another committee was set u" under the chairmanshi" of )r Kasturirangan.

'he recommendations of this committee are now likely to be the basis of clearances%commercial activity and environmental "rotection in the ghats. In November %FB s7 km. 4hile most of the regions notified inNovember last year based on the same re"ort have not undergone any change% Keralaarea has been reduced to =%==D.? s7uare kilometres Q including =%@


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,avadekar suggested earlier this month% to decide the eco9sensitive +ones in the si*states im"acted by the western ghats% it would mean another long wait. All im"actedstates will submit their recommendations% Mo/ will study those% "re"are another draftand then notify Q a "rocedure that can take anything between D to @F months.

An nvironmental Agenda /or 'he New 2overnment

As far as air "ollution is concerned% India sits on a ticking time bomb. 'hirteen out of the

< worst "olluted cities across the world are in India

9

'he N)A government need to have a "roactive and "ositive environment agenda. Itmust strengthen environmental oversight and not weaken regulations and must gobeyond clearance of "ro0ects to take urgent ste"s for fi*ing air and water "ollution aswell as sanitation and regeneration of forests and water bodies and "rovide access toclean energy to all% said the !entre for Science and nvironment #!S$ on the eve ofthe 4orld nvironment )ay.

&3n the eve of this 4orld nvironment )ay% we are "resenting our agenda for urgentaction that we ho"e the new government will take on. 4e need to move beyond therhetoric of environmental "rotection to im"lementing a tough action "lan for change andthis is what we want the government to do%( said Sunita Narain% director general of the

New )elhi9based research and advocacy body and think9tank !entre for Science andnvironment #!S$ in New )elhi on ; ,une.

Narain was releasing an Environment and )evelo"mentAgenda for the newly elected N)A government at the!entre. 'his agenda is based on years of research by !Son key environmental challenges.

Asserted Narain1 &'his agenda% we believe% will give uswhat we have always fought for 99 an inclusive% sustainable

growth. It will also show us how concerns of environmentand develo"ment can be taken care of together% withoutbeing in o""osition to each other. It is im"ortant that thenew government has a "roactive and "ositive agenda forenvironmental change.(!lean the air

As far as air "ollution is concerned% India sits on a ticking,unita arain D; ',E


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time bomb. 'hirteen out of the < worst "olluted cities across the world are in India%according to a recent 4orld 8ealth 3rgani+ation study. An estimate by the 4orld 5ankshows that the health cost of "articulate matter "ollution accounts for D "er cent of thecountrys 2)P.

So what should the nation doG !Ss advice is1

Z Introduce 5harat Stage I fuel and emission standards across the country by


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"rocesses to safeguard "eo"les concerns% and we have a "rescri"tion on how they cando it.(

Z !onsolidate all green clearances Q environment% forests% coastal and wildlife 99 so thatdecisions can be taken understanding the overall im"act of "ro0ects.

Z Instead of several regulators% set u" an inde"endent body to grant green clearances.Z -tilise the resources of State Pollution !ontrol 5oards #SP!5s$ to monitor com"liancewith clearance conditions. /ocus on "ro0ect monitoring% not 0ust "ro0ect clearance.Z 5uild ca"acity and reform institutions for better im"lementation of regulations.Immediately strengthen "ollution control boards.Z Strengthen the "rocess of "ublic hearings and "ublic "artici"ation in green clearances.Make these "rocesses more trans"arent and accountable.Z Set u" urgent task force to look at how enforcement and "enalties for environmentalnon9com"liance can be vastly strengthened. Need tough action that hurts. Not words.

-arnessing the de#e"opment potentia" of the .orest Rights A!t

nsuring livelihood and food security of the "oorest of the "oor is at the core of thislegislation. Seven years on% the Act is yet to live u" to e*"ectations. 'he newgovernment must im"lement /A in letter and s"irit and include it in its keydevelo"ment agenda% says !S.

Z Im"lement the ne*t "hase of /A focusing on community forest rights and forestregeneration with "eo"le.Z Introduce minimum su""ort "rice forall minor forest "roduce and make it a mission tobring livelihood benefits of forests to "eo"le.Z Provide new direction for forest "rotection that builds green wealth in the hands of"eo"leC measure and account for forest wealth in order to "rovide "rotection to naturalhabitats and to share wealth with "eo"le and build an effective agenda for co9e*istence%so that benefits of conserving wildlife are shared with local "eo"le and conservation isdurable and effective'a" renewable energy to ensure energy access

About D million Indians% mostly in rural areas% do not have access to electricity.'hough energy access issues need to be addressed% coal9based "ower generation isthe largest source of carbon emissions in the country. 'he new government must strikea a balance between energy security and its im"act on health and climate.Z 4ork to achieve the goals of the ural lectrification Policy to "rovide at least one unit#@ kilo4att9hour$ of electricity "er day to every rural household by


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Programmes for rural develo"ment are in "lace 99 the challenge is to match the -PAsrural develo"ment budget and to fi* the shortcomings in the delivery of develo"mentbenefits to the right "eo"le.Z eform M2N2A for develo"ment so that assets are created and em"loyment is

used "roductively.Z 5uild climate resilience and water security through the M2N2A "rogramme. /ocuson how water harvesting systems can be used for food%nutrition and livelihood security in an increasingly climate9atrisk world

-S% !hina 'o !ut !arbon missions1 'ime 'o /ollow SuitG

the eve of world environment day #,une B$ the carbon giants 9 -nited States of Americaand !hina have announced that they will cut carbon emissions. It is a welcome ste"even if a little late in the day and it is also time for India to consider similar affirmativeaction.

'he adverse im"act of uncensored industrial growth is taking its toll on industry itself asevident from "er"etual ha+e over cities% untimely rains% increasing water scarcity%shortage of minerals% landslides% droughts% floods and the inevitable "rotests. After

decades of "rotesting emission reductions global leaders 9 !hina and -SA haveannounced emission reduction targets% highlighting the significance environmentalconcerns are gaining in "olicy% economy and society. In the "ast both the countries havesteadfastly resisted international attem"ts to commit to emission reductions though fromo""osing sides of the carbon debate. It a""ears they are waking u" to the reality% asshould India.

'he -nited Nations /ramework !onvention on !limate !hange set u" the KyotoProtocol 9 an international treaty to address carbon emissions in @==F% which came intoforce only in


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debate that develo"ing nations cannot be held res"onsible for "ollution caused by thedevelo"ed nations in the "ast. India also "romotes this view at every given o""ortunityto e*"lain away the lack of a domestic action "lan on climate change. 'hough thisschool of thought has its "lace% the recent series of climate change events "rove that itis time to change the game. 6ast year the Intergovernmental Panel on !limate !hange

#IP!!$ released a detailed re"ort with em"irical "roof of how climate change is mostgoing to im"act the "oorest countries. And now it is time to become "roactive and notreactive in government "olicy to mitigate climate change im"act.

3ften the cautionary tale of better late than never is thrown around 9 be it about drivingcarefully or 7uitting a dirty habit 9 so seems the motto of -SA and !hina. 5oth countriesare heavy carbon emitters due to their domestic industry and de"endence on "owergeneration from fossil fuels. ecently !hina was declared worlds biggest greenhousegas emitter and seems to want to reverse the label with this first ever "romise of cuttingdown on emissions. Academics believe an absolute ca" on carbon emissions is neededto control the "revailing air "ollution of !hina.

'he ha+e over!hina hasbecome anurban legendgiving rise to anumber of "honyand many truede"ictions of thetoll it is taken oncivilians living inindustrial areasor cities. /or e*am"le the re"ort on the use of6) television sets in 5e0ing to show sunsets%which later "roved to be a hoa*% was ratherbelievable considering the tales "eo"le bringback from the newly industrialised country. JItis almost always foggy and a bit hard tobreathe because of the heavy "ollution% saysineet Mittal% managing director and co9founder 4els"un nergy who was recently in!hina on business.

And now that )elhi has over taken 5e0ing in"ollution as "er the 4orld health 3rganisation#483$ re"ort released earlier this year.'hough the Indian government cited bias forthe "oor ranking of )elhi% anyone living in thecity knows that emissions are only increasing

Ripp"e Effe!t *n


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with each "assing day. stimates suggest over @;


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to limit global tem"eratures. I believe they will. 5y now% there is more than enoughscientific evidence to show the need and urgency to act.

As the Intergovernmental Panel on !limate !hanges #IP!!$ /ifth Assessment e"ortshows% the need for collective as well as individual action is a must if the as"irational

target of limiting increase in tem"erature to o! by @


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Image courtesy 3regon State -niversity nergy from ocean waves is more reliable

and could "rove chea"er% say scientists. 3regon State -niversity #3S-$% in its findings

"ublished in the 0ournal enewable nergy% has asserted that wave energy in areas

with high "otential% such as northwestern Pacific% will be com"aratively stable and can

be integrated into the grid at lower costs% es"ecially wind "ower. 'his study was a

collaboration of researchers at 3S-% the -niversity of

ictoria% and industry.

According to the re"ort% "ower generated by waves can

be can be forecast with a high degree of accuracy

without much variability for hours at a time. 'his is a

huge advantage for any renewable source since "ower

from renewable sources is intermittent and unreliable.

'he study e*amined the hy"othetical addition of B


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Indias climate strategy needs revision

D !omments

Author(s) Sunita Narain \sunitanar

an 1C 1C .rom the print edition

!limate change negotiations are by now "redictable. 'he already9industrialised come to

each conference of the "arties #!3P$ with a clear game "lan% that is% to erase their

contribution to the emissions already "resent in the atmos"here% thereby effectively

remove the differentiation between their res"onsibility and that of the rest of the world to

act. 'his would rewrite the @== convention on climate change and let them evade the

obligation to "rovide funds and technology for action in the develo"ing world. 'he

"roblem is that develo"ing countries do not come with an e7ually clear "lan or "roactive

"osition. As a result% in each meeting% including the recently concluded !3P< at 6ima%develo"ing countries lose. 'he terms of the agreement change "rogressively and

deliberately against the "oor and the Planet.

Indian negotiators believe they can maintain the status 7uo and delay any new

agreement% but as climate negotiations show% this tactic does not work. 4e block but the

rich countries shove and the ground sli"s from under our feet. 4e need to revise our

strategy.

/or instance% India went to the 6ima !3P all guns bla+ing to o""ose e*9ante review of

mitigation commitments. It has been decided that all countries will declare their Intended

Nationally )etermined !ontributions #IN)!s$:how much emissions they will cut% why

and when. 'he e*9ante review is to measure and review whether a country has met its

target. It is also to see if the sum of these actions is sufficient to kee" the world below

the guardrail of ^! increase in tem"erature. If not% then to decide on further action.

4hy did India o""ose thisG 5ecause when the idea was first "ro"osed at the

!o"enhagen conference in


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India rightly fought the obliteration of the "rinci"le of differentiation% which meant targets

would be based on e7uity and "ast res"onsibility. 'he review was also seen as a

dilution of national sovereignty.

5ut that was the "ast. Since then India has agreed that the "ost9


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also ensure that each countrys actions are based on rightly shared common

atmos"here.

Instead at !3P


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world from o+one layer de"letion and 8/! is harmful because it contributes to climate

change% so discussions should take "lace under the -Ns climate convention

#-N/!!!$.

In fact% 8/! is the chemical that the world introduced to "hase out

hydrochlorofluorocarbon #8!/!$% an interim substitute for chlorofluorocarbon #!/!$.

5oth 8!/! and !/! were indicted for damaging the stratos"heric o+one layer that

blocks harmful ultraviolet rays.

Seemingly% the -S is driven by green concerns% as

8/!s are greenhouse gases %


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'he Modi93bama 0oint statement indicates a movement ahead by recognising the need

to use the Montreal Protocol to reduce 8/! and to continue to account under the

-N/!!!. 'his is good. Now the real work begins. It is im"ortant for India to take a

"roactive "osition. It should first get industrialised countries to agree to an ambitious

"hase9out of 8/! by


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0udicial outcome in the drug "atent cases where "atent "rotection to several life9saving

drugs are being challenged.

In a re"lay of earlier "rotests% health activists have written a strongly worded letter to the

!hief ,ustice of India #!,I$% 7uestioning the ethics and "ro"riety of interactions between

the 0udiciary and IP3s "harma multinational members 0ust as hearings are about to

take "lace in im"ortant "atent dis"utes involving cancer drugs. Should 0udges and

regulars be giving "rivileged access to "atent owners:now or at any timeG IP3 is

blatant about its agenda and so are its Indian s"onsors who include the a"e* Indian

industry organisation% !II% and leading firms of IP attorneys that are involved in the

litigation.

!onflict of interest and "rofessional ethics loom large over these interactions which

have become increasingly bra+en in India over the "ast decade.

'he starting "oint was the India Pro0ect launched by 'he 2eorge 4ashington -niversity

6aw School #24-$ of the -S in


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India is "erha"s the only develo"ing country with a long

history of "atent lawmaking starting with the colonial times.

'he turning "oint came in @=B? when the government

a""ointed the ,ustice N a0ago"ala Ayyangar !ommittee to

"rovide a road ma" for revising the "atent system. InSe"tember @=B=% the Ayyangar !ommittee submitted its

well argued D=?9"age re"ort which recommended the

retention of the "atent system des"ite its shortcomings.

8owever% there was a significant caveat in the national

interest1 there would be no "roduct "atents in two key

sectors:"harmaceuticals and agricultural chemicals. 'his

re"ort formed the basis of the Patents Act% @=?


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A victory and a retreat on !6s

< !omments

Author(s) 6atha ,ishnu \l0ishnu

an 1C 1C .rom the print edition

Su%reme Court u%holds India&s first com%ulsory licence but go"ernment baul's at gi"ing

the second

Illustration1 'ari7ue A+i+

)ecember has been a landmark month on legal

7uestions surrounding the com"ulsory licence #!6$.

3n )ecember @% the Su"reme !ourt of India set

the seal on a three9year battle launched by

multinational drug com"any 5ayer against the first

and only !6 issued so far. 'hat was to "roduce the

anti9cancer drug sorafenib tosylate #Ne*avar$. 'he

a"e* court dismissed 5ayers s"ecial leave "etition against the 5ombay 8igh !ourts

decision u"holding the !6 granted to Indian generics firm Natco to manufacture

Ne*avar.

'he ruling on Ne*avar is momentous as it was a test case. 'he !6 given to Natco inMarch


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In earlier columns% we had e*"lained the significance of the Ne*avar case where

several critical issues such as the cost of the drug% its limited availability in India and

5ayers reluctance to manufacture it in the country had all "layed a role in the issuance

of the !6.

5ut other develo"ments are testing the countrys commitment to !6s. At the same time

that the Su"reme !ourt gave its ruling on Ne*avar another critical case involving !6s

came u" in the )elhi 8igh !ourt. 'he suit was filed by Novartis against leading generics

maker !i"la for infringing five "atents covering its Indacaterol drug #3nbre+$ that is used

to treat chronic obstructive "ulmonary disease #!3P)$. Novartis has sought damages

for this infringement.

!i"la% however% was testing the waters on !6 through another route #see E!i"las

audacious move% )own 'o arth% November @B9D


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One of the disappointments in the post-reform period in India has been the slow progress in the

reduction of malnutrition, especially with reference to the underweight among children. In fact,

the rate of change in the percentage of underweight children has been negligible in the period

1998-99 to !!"-!#$ the only two points of data in recent years on undernutrition from the

%ational &amily 'ealth (urvey )%&'(*-II and -III. In this phase, the proportion of underweight

children in the age group !-+ years declined only marginally from per cent to # per cent.

The reduction in malnutrition among children has been very slow when compared to rapid

economic growth in the post-reform period. International studies show that the rate of decline in

child undernutrition tends to be around half the rate of growth of per capita /0. s ngus

/eaton and 2ean /r34e have said in an article on nutrition, in India5s case, per capita /0 of

about . per cent during 199! and !!" was e6pected to reduce malnutrition by about .1 per

cent per annum or per cent during this period. 7ompared to this, the decline in malnutrition

among children was only 1! per cent.

Economic growth and nutrition

However, the 2014 Global Hunger Index report of the International Food olic! "e#earch

In#titute $IF"I% #how# con#iderable improvement in India hunger index and in the

percentage of underweight children ' from 24(2 in 200) to 1*(+ in 2014 ' an increa#e of

(4 point#( -l#o, out of * countrie#, India ran. improved b! around + point#, from / to

))( hile India i# no longer in the categor! of alarming ca#e#, it# hunger #tatu# i# #till

cla##ified in the categor! of #eriou#( 3hi# improvement i# attributable mainl! to a

reduction in the percentage of underweight children, from 4/() per cent in 200)0 $5FH6

III% to /0(* per cent in 201/14 $a #urve! conducted b! the 7ini#tr! of omen and 8hild9evelopment with #upport from :5I8EF%( 3hi# #how# a remar.able reduction of 1/

percentage point# in eight !ear# during 200)0 to 201/14( However, the late#t #urve! i# a

#ource of encouragement regarding the reduction in undernutrition( ;ne ha# to wait for a

!ear more for the finding# of 5FH6I


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3he report #hould have al#o di#cu##ed the impact of economic growth on nutrition( It i#

.nown that India focu##e# on a twintrac. polic! of economic growth and direct univer#al

and targeted programme# for a reduction in povert! and an improvement in #ocial

indicator#( India had a high economic growth of ? per cent per annum during 200)0 to

200+0?, which helped in an increa#e in taxG9 ratio and an allocation of higher

expenditure to the #ocial #ector( 6imilarl!, India al#o had a higher agriculture growth rate

of 4 per cent per annum during the 11th lan period $200*12%( 3hi# too mu#t have helped

in rai#ing nutrition( -t thi# point, one ma! a#. a valid @ue#tion= we had #ix per cent growth

during the period 1??2?/ to 200)0 but wh! wa# there no #ignificant decline in

malnutritionA It ma! be noted that there wa# a decline in malnutrition during 1??2?/ to

1??+?? but there wa# #tagnation in nutrition #tatu# during 1??+?? to 200)0( 9uring thi#

pha#e a# well, economic growth and agricultural growth were relativel! low(

Goal of BCero Hunger&

-# the IF"I report #ugge#t#, the expan#ion and increa#e in the efficienc! of the direct

programme# have helped in reducing undernutrition during 200)0 to 201/14( However,

it i# fair to #a! that economic growth that include# high agricultural growth and direct

programme# ha# been a re#pon#ible factor in the recent finding of a #ignificant reduction in

malnutrition( o#t200), the development agenda at the global level ha#, among other

thing#, been focu##ing on the elimination of hunger and malnutrition( 3he :5 6ecretar!

General recentl! announced meeting the challenge of BCero Hunger& ' to be achieved b!

202)( ;ne of the element# in thi# challenge i# to en#ure Dero #tunted children in le## than

two !ear#( If thi# i# to be achieved at the global level, then progre## in India i# important(

In#pite of #ignificant progre## in the la#t eight !ear#, a lot of wor. ha# to be done in order to

reduce malnutrition in India( 3hi# al#o po#e# challenge# at the global level becau#e figure#

relea#ed b! :5I8EF #how that in 2011, )) million out of 102 million underweight children

under five in the world ' or )4 per cent of the global total ' live in India( 6imilarl!, 2

million out of 1 million #tunted children of the world are from India $/* per cent%( In

other word#, one out of two underweight children and two out of five #tunted children are

in India( It i# true that with recent progre##, the ab#olute number# of children with

malnutrition will come down(

It i# .nown that a reduction in malnutrition need# the application of a multipronged#trateg!( 3he determinant# of malnutrition are agriculture, health, women empowerment

including maternal and child care practice#, en#uring #anitation, enabling #afe drin.ing

water, and activating #ocial protection programme# and nutrition education apart from

economic growth, a# mentioned earlier( 3he evidence #o far #how# that malnutrition can be

reduced b! enhancing women health, promoting gender e@ualit! and en#uring the

empowerment of women including female education( Gender e@ualit! and the wellbeing of


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children go hand in hand( 3he right# of women and children are mutuall! reinforcing(

Gender empowerment i# relativel! better in -frica( -lthough povert! and other number#

are higher in 6outh -#ia, -frica had a le##er percentage of children under nutrition than

6outh -#ia becau#e of better women #tatu#(

-griculture and nutrition

"ecentl!, there ha# been a lot of empha#i# on the lin.age# between agriculture and

nutrition, which can be improved b! three entr! point#( 3he fir#t of the#e i# in en#uring

inclu#ivene## and e@uit! in agriculture that can be achieved b! increa#ing agricultural

productivit! in rainfed and re#ourcepoor area#( 3hi# in turn will help rai#e the

productivit! and income of #mall and marginal farmer#( 3he bul. of the rural poor, a# well

a# #mall and marginal farmer#, live in #uch re#ourcepoor area#, where undernutrition i#

largel! prevalent( 3he #econd i# in policie# to diver#if! diet in order to improve

micronutrient# and the third i# in having agricultural policie# to empower women( In all

thi#, it mu#t not be forgotten that climate change po#e# a maor challenge to agriculture(

3hi# !ear i# the International ear of Famil! Farming> it need# to be noted that 9r( 7(6(

6waminathan ha# often mentioned the importance of famil! farming in offering an

effective and an economic #olution to en#uring that ever! per#on ha# acce## to nutritiou#

food( iofortication i# one wa! of having acce## to micronutrient#( -ccording to rof(

6waminathan, we #hould al#o help promote naturall! biofortified crop# #uch a# #weet

potato, moringa $drum#tic.#%, bread fruit and variou# berrie# which are rich in

micronutrient# #uch a# iron, Dinc, vitamin - and vitamin 8(

3he importance of #anitation and #afe drin.ing water in reducing malnutrition i# well

.nown( 3herefore, en#uring improvement# in #anitation i# urgentl! needed a# it i# a big

predictor of malnutrition(

It i# heartening to #ee that #ocial protection programme# have helped in improving

nutrition( Further, the #trengthening of #ocial protection programme# li.e I896, 96, mid

da! meal #cheme# and 7G5"EG- are needed to achieve nutrition #ecurit!( -lthough

deliver! #!#tem# have improved in programme# li.e 96, the lea.age# are #till high(

- recent #urve! of women and child welfare doe# not give u# the number# at the 6tate level(3hi# mu#t be noted a# figure# for 200)0 #how that the proportion of children who are

underweight i# high in 6tate# #uch a# 7adh!a rade#h $0(/ per cent%, har.hand $)?(2 per

cent%, ihar $)? per cent%, 8hhatti#garh $)2 per cent% and :ttar rade#h $4*(/ per cent%(

3herefore, there i# a need to focu# on the#e 6tate#(


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3he con#e@uence# of undernutrition are well .nown( 6tunting and undernutrition are the

main contributing factor# for child mortalit!, di#abilit! and di#ea#e( 3here are al#o the

harmful effect# of an inade@uate inta.e of #pecific micronutrient# e##ential for brain

development and the nervou# #!#tem( For example, iron deficienc! i# .nown to affect a

child performance in #chool( In #hort, hidden hunger ha# to be reduced(

In conclu#ion, it ha# to be recogni#ed that ignoring hunger and malnutrition will have

#ignificant co#t# to an! countr! development( 5utrition improvement ha# both intrin#ic

and in#trumental value( 6ome e#timate# indicate that there i# a 2 to / per cent G9 lo## due

to low productivit!( 3he return# to inve#tment# in food and nutrition are @uite high( Ever!

dollar #pent on intervention# to reduce #tunting i# e#timated to generate about 20/0 in

economic return#( 3he government #hould under#tand the intrin#ic value to people and

in#trumental value of nutrition in term# of G9 gain and return# to inve#tment( 8ountrie#

li.e 8hina, raDil and


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#n fact, there is evidence of rising imports and e:ports of capital goods and intermediarygoods that sho"s #ndia is a!le to source inputs, add value and then re$e:port them, asenior &ommerce Ministry official told reporters at a !riefing here on Monday. #t sho"s#ndia is !ecoming part of the regional value chain of South 2sia, he said. This "as truefor specialised steels, for instance, !eing imported as input into automo!iles for "hich

#ndia "as fast !ecoming an e:ports hu!, he said.

Data on preferential trade does not confirm fears that #ndia is !ecoming a dumpingmar-et for consumer goods nor are "e !ecoming suppliers of ra" materials, theofficial said.

The rapidly gro"ing imports of electronic goods, he clarified, "as on account of the#nformation Technology 2greement of the 'orld Trade (rganisation rather than FT2s.

The official said the shares of imports at preferential duty rates in overall in!oundshipments did not e:ceed more than CC per cent in the case of any of the FT2s #ndia hadsigned. This indicated that the preferential imports under FT2s had not contri!uted tothe increase in trade deficits "ith those countries, the official said.

The share of imports at preferential rates in the case of the 2sean FT2 is ;?.= per cent.That for Singapore is ;7.< per cent, South orea is C;.< per cent and 9apan is CC.? percent.

1o"ever, #ndia at present does not have any system of collecting data on e:ports.

#ndia has so far entered into FT2s "ith 9apan, Singapore, South orea, Malaysia, 2seanand South 2sia. FT2s are economic instruments for leveraging competencies in tradeand investments. #ndia+s rationale for entering into FT2s "as the diversification ande:pansion of e:ports )!oth goods and services* to the partners and regions as "ell asaccess to ra" materials and capital goods for stimulating value$added domesticmanufacturing. FT2s have ade0uate safeguard mechanisms to tac-le the adverse effectof imports on the domestic industry and ta-e corrective action against import surges,according to the official.

Commerce Ministry says exports of raw materials are not rising

Time to demonstrate an %ct ast Policy


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)t is important for )ndia and Myanmar now to set up a high*le(el bilateral

mechanismto re(iew the progress being made on key connecti(ity pro8ects

LOVE THY NEIGHBOUR:Effective trade and transportation links between India and

Myanmar can improve market size for potential investments. Picture shows the India-

Myanmar friendship road in Moreh, a border town in Manipur. PHOTO: RITU RAJ

KONWAR

Much of %rime Minister 4arendra Modi+s visit to Myanmar has !een ta-en up "ith theannual 6ast 2sia Summit and the 2S624$#ndia Summit. ut his !ilateral meeting "iththe Myanmar %resident Thein Sein "as no less important, it !eing the first time the t"oleaders met. The visit has also provided an opportunity for Mr. Modi to understand firsthand the ongoing democratic transition in Myanmar, to"ards a more mar-et$orientedeconomy, and a peaceful settlement "ith the ethnics. 2ll this is "or- in progress. 1avinga peaceful, sta!le and democratic Myanmar in our immediate neigh!ourhood is in#ndia+s interest.

Since C7;;, the Thein Sein government has ushered in many positive changes E releaseof political prisoners, greater media freedom and several reforms in the economic, socialand administrative spheres. Despite a C= per cent reservation for the military and thestrong presence of Mem!ers of %arliament from the military$rooted ruling UnionSolidarity and Development %arty )USD%*, %arliament too has evolved into an activedeli!erative and la"ma-ing forum. The changes have !rought Myanmar !ac- into theinternational mainstream after five decades of military rule and its chairmanship of2S624 this year has gone off 0uite smoothly.

Parliamentary discussions

There are, ho"ever, many challenges that lie ahead. %arliamentary discussions onconstitutional reform have !een under "ay for over a year !ut it is not clear "hatprovisions if any "ill !e amended. The recommendations of the %arliamentary&ommittee to revie" the &onstitution, su!mitted on (cto!er CC, are to !e discussed in%arliament later this month. 'ill 2rticle =B)f* !e changed, "hich effectively !ars 2ungSan Suu yi from !eing a candidate for the post of %resident@ 'ill the three$fourthma/ority re0uired in %arliament that ma-es it mandatory to have military support for


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any constitutional reform !e reduced@ 'ill there !e more delegation of po"ers tostates@

The Myanmar %arliament is also discussing a move to introduce a proportionalrepresentation system. This could significantly affect the outcome of the ne:t general

elections scheduled for (cto!erK4ovem!er C7;=. 'ill USD% and many of the smallerdemocratic parties, in favour of the change, use their ma/ority in %arliament andprevail@ Ms Suu yi+s 4ational >eague for Democracy )4>D* and the ethnic partiesprefer retention of the first$past$the$post system. 'ill there !e a non$partisandiscussion on this issue@

2 three$stage ethnic peace process has also !een in progress for over t"o years no".'hile local$level ceasefire agreements have !een signed "ith all ma/or ethnic armedgroups !ut for the achins, efforts under "ay to sign a national level ceasefireagreement prior to holding a national political dialogue have proved elusive. 'hilemany issues have reportedly !een resolved including a possi!le pledge to adopt a federalsystem, some differences still persist such as those relating to code of conduct,monitoring of ceasefire Gones and the idea of a 3Federal 2rmy.+

'ith general elections coming up ne:t year, continuing political deadloc- could createcomplications. %erhaps it "as for this reason that %resident Thein Sein convened anunprecedented meeting on (cto!er J; to "hich he invited top leaders in thegovernment, %arliament, the military, leaders of a fe" political parties including Ms Suuyi, and the head of the Union 6lection &ommission. The three issues discussedincluded a smooth political transition, continuing the peace process and !ringing a!outnational reconciliation. More meetings of this group "ould !e a sign that serious effortsare under "ay for a road map to deal "ith the political challenges ahead in an inclusive"ay.

'hile Myanmar "ill have to evolve its o"n path to peace, reconciliation and ademocratic frame"or-, #ndia can e:tend technical assistance and support as may !eneeded and also share its o"n e:periences.

#t is very "elcome that Mr. Modi "ill also meet Ms Suu yi "ho is a respected nationalfigure and has had a long association "ith #ndia. She also visited #ndia in 4ovem!erC7;C.

&eview o) development proects

Mr. Modi+s visit is ta-ing place t"o years after the !ilateral visit of former %rimeMinister Manmohan Singh in May C7;C "hen several M(Us and pro/ects "ere agreedupon !or

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