Sie sind auf Seite 1von 83

EDITORIAL

The Burundi way, on the country's decision to quit ICC


NOVEMBER 01, 2017 00:02 IST
UPDATED: OCTOBER 31, 2017 23:25 IST

As it becomes the first country to leave the ICC, questions of UN jurisdiction remain

B urundi’s decision to quit the International Criminal Court is likely to resonate in other African states
whose leaders have long complained that they are targeted for investigation by the UN institution. But
the obstacles faced by the court in The Hague to hold big global powers to account for human rights
violations does not detract from the complicity of the region’s many dictators in subverting democratic
institutions to keep their grip on power. Burundi is the first member-country to leave the ICC. In September,
a UN commission investigating violence for over two years under President Pierre Nkurunziza recommended
a criminal investigation by the court. The panel corroborated the evidence collected by fact-finding missions,
which have reported large-scale incidents of sexual abuse, torture, forced disappearances, and summary
executions of over 500 people. The flight of refugees to neighbouring countries is said to have exceeded
400,000. All these atrocities were triggered by legitimate and often heroic protests in this small central
African state against one man’s lust for power. Mr. Nkurunziza won a third term in 2015, in contravention of a
provision in the 2003 peace agreement and despite an opposition boycott. He rejected the two-term limit in
his renewal bid, contending that his first tenure should not be counted as he was elected by parliament rather
than through a popular vote. His pursuit of power became all the more savage since an aborted coup prior to
the elections, and the military and intelligence services seem to have rallied behind his authoritarian agenda.

Meanwhile, international pressure to bring the situation in Burundi under control has proved ineffective.
The African Union (AU) abandoned plans last year to authorise a peacekeeping mission, despite the
commitment codified in the bloc’s charter to intervene to prevent genocide. But that initial enthusiasm
dissipated. Securing an extension of presidential terms is not unique to the Burundian leader. Burundi’s
example may well be emulated by other countries. Within weeks of a parliamentary vote last year to leave the
ICC, South Africa announced its own decision, which has been deferred pending legislative approval. More
worrying is the mood across the AU to defy the jurisdiction of the Rome Statute, the founding treaty of the ICC
ICC. The erroneous logic of the region’s leaders is that since most of the ICC investigations involve African
governments, the institution is somehow biased against the continent. Such arguments are unlikely to
appeal to their people. In any case, Mr. Nkurunziza’s regime may not be able to evade the international court;
the UN Security Council is empowered, under the Rome Statute, to refer complaints against non-member
nations. Having unanimously backed constructive engagement, the Council may exercise its authority if the
situation remains dire.
EDITORIAL

Judicial safe zones: on special deposition centres in courts


NOVEMBER 01, 2017 22:20 IST
UPDATED: OCTOBER 31, 2017 23:30 IST

Deposition centres will help create a conducive atmosphere for child witnesses

I t has long been recognised that children testifying as witnesses find the courtroom experience
intimidating. In many cases, they are victims themselves, and may be deterred from deposing fully and
confidently in the formal atmosphere. The Supreme Court’s direction that within three months there should
be at least two special deposition centres under every high court’s jurisdiction is a positive step towards
ensuring a conducive and protective atmosphere for vulnerable witnesses. This takes forward the principle
already contained in laws relating to children. For instance, the Protection of Children from Sexual Offences
Act provides for child-friendly procedures during a trial. Under this law, the officer recording a child’s
statement should not be in uniform; also, during court proceedings steps must be taken to ensure that the
child is not exposed to the accused. The court is allowed to record a child’s statement through video
conferencing, or using one-way mirrors or curtains. At present, Delhi has four such deposition centres,
backed by guidelines framed by the Delhi High Court. The amicus curiae in a criminal appeal before the
Supreme Court had suggested that such special centres are needed in criminal cases that involve vulnerable
witnesses. The Bench, setting aside a high court’s acquittal of a man accused of raping a hearing and speech
impaired girl and restoring the trial court’s conviction, agreed such centres are needed with safeguards.

The Delhi High Court’s guidelines are inspired by the UN Model Law on Justice in Matters involving Child
Victims and Witnesses of Crime. The main objectives include eliciting complete, accurate and reliable
testimony from child witnesses, minimising harm, and preventing ‘secondary victimisation’. Secondary
victimisation, or the harm that occurs not due to a criminal act but through the insensitive response of
institutions, systems and individuals, is something that vulnerable witnesses often experience in cases of
sexual violence. The creation of special centres would have to imply much more than a safe space for
recording the testimony of vulnerable witnesses. It should also mean that multiple depositions and hearings
at which they have to be present are avoided. In particular, they should not have to needlessly wait for their
turn or be subjected to procedural delays. For now, the term ‘vulnerable witnesses’ is limited to children, but
the principle may have to be expanded to include adults who may be equally vulnerable to threats and an
atmosphere of fear and intimidation. Victims of sexual violence and whistle-blowers whose testimony
against powerful adversaries may endanger their lives require a conducive atmosphere to depose. Ideally,
every district in the country would need a special deposition centre. The infrastructural and financial burden
may be huge, but the state will have to provide for it to abide by the overarching principle of protecting
vulnerable witnesses.
EDITORIAL

Moving up in the Ease of Doing Business index


NOVEMBER 02, 2017 00:02 IST
UPDATED: NOVEMBER 01, 2017 22:56 IST

India moves up the doing business index, but the challenges remain formidable

I ndia’s surge in the latest World Bank report on “the ease of doing business” around the world — from the
130th position last year to the 100th — could not have come at a better time for the government. Facing
sustained criticism of late over its handling of the economy, it was not entirely surprising that Finance
Minister Arun Jaitley held a press conference just to discuss the findings of the Bank’s report. He reiterated
the commitment to pursue more reforms, especially in areas where the Index still rates India poorly among
190 countries. Prime Minister Narendra Modi has set for his government the target of entering the top 50 in
the Bank’s index, from the 142nd rank India was placed at in 2014 soon after he assumed office. Specific steps
to cut red tape seem to be paying off, with the Bank recognising India as one of the top 10 countries that have
made improvement over the past year, and the only large country to see a significant shift. The introduction
of the new insolvency and bankruptcy resolution process, simplifications in the payment of statutory dues
such as provident fund contributions and corporate taxes and easier access to credit are among the key
changes that spurred India’s latest ranking. It is also notable that India is now the fourth best placed in the
world for minority investors, well ahead of several developed nations.

The Bank’s report, based on executive actions and ground-level feedback from businesses in Mumbai and
Delhi till June 1 this year, however, does not take into account the impact of the goods and services tax
launched a month later. The quality and pace of course correction on the GST in the coming months will
determine if India can hold its 100th position or move up further. Talking up the Modi government’s
approach, Mr. Jaitley sought to contrast the UPA era with the NDA’s tenure by saying that the ease of doing
corruption has been replaced by the ease of doing business. While the government has valid reasons to be
upbeat, it must not lose sight of the larger challenges. The enforcement of contracts now takes longer than it
did 15 years ago, while procedures to start a business or secure a construction permit remain cumbersome. As
the country’s largest urban agglomerations, Mumbai and Delhi cannot host the kind of large factories that
India needs to generate adequate employment. It is critical that such procedural reforms reach the hinterland
and a road map be drafted for the larger legislative changes needed in matters such as land acquisition. Lastly,
while foreign investors are important, they often take their cue from the mood of domestic businesses. Last
week, for instance, Sunil Bharti Mittal said the ease of doing business remains a concern despite the
government’s best intentions, and mooted a structured dialogue between India Inc. and policy-makers on the
irritants to investment. The government, with great orators in its ranks, could perhaps be a better listener.
EDITORIAL

The war on TB
NOVEMBER 02, 2017 00:02 IST
UPDATED: NOVEMBER 01, 2017 22:51 IST

India registers a few successes but the surveillance systems remain inadequate

T here is a glimmer of hope with India registering a slight drop in the number of new tuberculosis cases
and TB deaths in 2016 compared with 2015. From an estimated 2.84 million new cases in 2015, the
number dropped marginally to 2.79 million in 2016, according to the World Health Organisation’s Global
tuberculosis report, 2017. Incidence estimates for India are considered interim, pending a national TB
prevalence survey scheduled for 2017-2018. In terms of mortality, the drop was from 0.51 million in 2015 to
0.43 million in 2016. The number of deaths and the incidence rate have been falling both globally and in
India. The targets set in the End TB strategy are global reduction of 20% in incidence and 35% in mortality by
2020, taking 2015 as the base year. To reach that target, the global drop in incidence has to be 4-5% a year —
currently it is about 2% a year. Also, the percentage of deaths should come down from the current 16% to 10%.
With India accounting for the highest TB incidence (23%) and mortality (26%) globally, success in realising the
End TB targets hinges largely on the country strengthening its systems. The first step in defeating the disease
and achieving the targets is to record every diagnosed patient through case notification (that is, when a
person is diagnosed with TB, it is reported to the national surveillance system, and then on to the WHO).
There was a 34% increase in case notifications by health-care providers in the private sector between 2013 and
2015. It improved from 61% in 2015 to 69% in 2016. But much work remains to improve case notifications as
only 1.9 million TB cases in the public and private sectors were notified in 2016, leaving a 25% gap between
incidence and notification, the largest in the world. Though notification was made mandatory in 2012,
multiple surveys and surveillance data still show large under-reporting of detected TB cases, especially in the
private sector.

With a higher number of people with TB being tested for drug resistance, the percentage with resistance to
the drug rifampicin alone more than doubled to 0.58 million in 2016 over the previous year. Also, the number
of estimated multi-drug-resistant TB cases increased marginally to 84,000. But the number of people with
MDR-TB enrolled for treatment improved marginally between 2015 and 2016 (from 26,996 to 32,914). For the
first time, baby steps have been taken to offer preventive TB treatment to a small (5%) number of people who
are HIV-positive, and 1.9% of children below five years who are household contacts of people recently
diagnosed with pulmonary TB. Notably, domestic funding (74%, $387 million) for anti-TB work has been more
than that from international sources (26%, $124 million). While better funding might help India inch closer to
its stated goal of ending TB by 2025, much more is needed in terms of funding and commitment on all fronts.
EDITORIAL

Trying politicians: on setting up special courts


NOVEMBER 03, 2017 00:15 IST
UPDATED: NOVEMBER 03, 2017 00:01 IST

Special courts may help speed up cases, but should they get differential treatment?

T he Supreme Court’s order directing the Centre to frame a scheme to establish special
courts exclusively to try cases against politicians marks another milestone in the higher
judiciary’s continuing campaign to cleanse politics of the taint of crime. The court has handed
down many rulings that make legislators and holders of public office accountable for
corruption. In recent years, it has grappled with the disturbing phenomenon of criminals
entering the electoral fray. In a landmark verdict in 2013, the court removed the statutory
protection for convicted legislators from immediate disqualification; and in 2014, it directed
completion of trials involving elected representatives within a year. The court is now keen on
establishing a time-bound and exclusive judicial mechanism to expedite trials involving
“political persons”. The order requires the Centre to provide details of the funding necessary to
set up special courts, and indicates that State governments be involved in the exercise. True,
cases involving offences by serving or past legislators move rather gingerly in the present
criminal justice system. It is apparent that those with political influence have taken full
advantage of its inherently languid nature by delaying hearings, obtaining repeated
adjournments and filing innumerable interlocutory petitions to stall any meaningful
progress. A few prominent leaders have been successfully tried and sentenced, but these are
exceptions rather than the rule. For influential politicians, a criminal prosecution is no more
than a flea bite; and, sometimes, even a badge of victimhood that redounds to their electoral
benefit.

However, establishing special courts may not be the ideal way to expedite cases. From the
viewpoint of the accused, the idea could smack of victimisation and engender a feeling of
being chosen for discriminatory treatment. There is already a provision for special courts to
try various classes of offences. For instance, corruption, terrorism, sexual offences against
children and drug trafficking are dealt with by special courts. However, creating a court for a
class of people such as politicians is discriminatory. While corruption charges against public
servants are being handled by special courts, it is a moot question whether there can be special
treatment for offences under the Indian Penal Code solely because the accused is a politician.
A possible legal and moral justification is, of course, available. It is in the public interest to
expedite cases in which those in public life face serious charges. It would be primarily in their
own interest to clear their names quickly, lest their candidature be tainted. Also, the earlier
order for completion of trial within one year appears to have had no significant impact.
Special courts may indeed address these issues, but the ideal remedy will always be a speedy
trial in regular courts. If only the routine criminal process is pursued with a universal sense of
urgency, and if enough courts, judges, prosecutors and investigators are available, the
expediency of special courts may not be needed at all.
EDITORIAL

Terror in New York


NOVEMBER 03, 2017 00:15 IST
UPDATED: NOVEMBER 02, 2017 23:58 IST

‘Lone wolf’ attacks are a security and political challenge; Donald Trump’s rhetoric
won’t help

T he terrorist attack in New York on Tuesday confirms fears that terrorism, especially
in the West, is becoming more decentralised, with individuals radicalised by terrorist
ideology taking up arms on their own. Like the ‘lone wolf’ terrorists in Nice or Berlin, who
killed over 100 people last year, the New York attacker ploughed a pickup truck into a busy
bicycle path in Manhattan, killing eight. Officials say Sayfullo Saipov, the 29-year-old
Uzbek immigrant, was inspired by the Islamic State and wanted to inflict maximum
damage. This is a unique challenge for governments. Over the last few years, Western
agencies have foiled multiple terror plots. The U.S. is a case in point. It has not seen any
major coordinated terror attack since September 11, 2001. But the chances of detecting and
foiling a sophisticated terror plan by a network are higher than preventing a lone wolf
attack. Even before the IS suffered military defeats in its core territories in West Asia, it had
outsourced terror to members and sympathisers. This means that someone inspired by the
IS world view and living in, say, New York or Nice doesn’t have to contact IS handlers or wait
for orders from Raqqa or Mosul. He or she can be both planner and executor. That is what
happened in Nice, Berlin, Orlando and now New York.

Governments face both political and security challenges. The political challenge is to find
the root causes of radicalisation and address them. This cannot be done without support
from community members and leaders. The security challenge is to be more efficient when
it comes to preventive measures. In the case of Saipov, officials say he had been planning
for a year to strike civilians. He had hired a truck earlier to practise making turns and
rehearsed the route where he wanted to stage the attack. Once such an attack happens, the
challenge is also to prevent polarisation along religious or ethnic lines while sounding the
message of unity and resolve to fight terror. Instead, President Donald Trump has grabbed
the moment to assail his political rivals and drum up support for his anti-immigration
policies. He has already promised to step up “extreme vetting” — even though it is
unexplained how “extreme vetting” could have prevented the New York attack, or how
officials could have foreseen in 2010, when Saipov entered the U.S., that he would become a
threat seven years down the line. Also, Uzbekistan is not on the list of countries targeted
under Mr. Trump’s immigration ban. Washington needs a result-oriented plan to check
radicalisation as well as prevent more terror attacks rather than ideological plans that are,
in a way, helping the extremist narrative about Muslims being discriminated against and
persecuted in the West.
EDITORIAL

On NTPC boiler blast: Unsafe boilers


NOVEMBER 04, 2017 00:02 IST
UPDATED: NOVEMBER 03, 2017 23:56 IST

The Unchahar tragedy points to an unforgivably lax safety protocol

T he boiler explosion at NTPC’s Unchahar power plant in Rae Bareli underscores the
importance of inspections and protocols for hazardous industrial operations. It has
cost at least 32 lives and caused severe injuries to scores of personnel. High pressure boilers
are hazardous pieces of equipment, which are strictly regulated with special laws. In fact,
the basic objective of the Indian Boilers Act, 1923 is to ensure the safety of life and
protection of property by mandating uniform standards in the quality and upkeep of these
units. That the Uttar Pradesh government failed miserably in meeting this objective is
evident from the accident at the public sector facility. Quite clearly, the accident was
entirely preventable because boilers are designed to provide warnings as soon as
dangerous pressure builds up and trigger automatic safety devices at a critical point. They
should undergo periodic inspections to ensure that all these features are working and
intact. At the Unchahar plant, the blocking of an outlet for waste gases by ash, unusual in a
fairly new boiler, calls for an inquiry into the quality of the equipment and the fuel used.
Ideally, these aspects should be investigated by an external agency and not the NTPC.

Industrial regulation has, unfortunately, come to be viewed as a barrier to ease of doing


business in India. This is a result of inefficiency and corruption and the typical response of
governments has been to relax crucial safety checks. Self-certification and third-party
certification of facilities has received support from policymakers even in the case of
boilers. Soon after assuming office, Prime Minister Narendra Modi likened maintenance of
boilers to that of a privately owned car, where owners should be trusted to do their best
because they understand the need for safety in its operation. But the two are not
comparable. The Unchahar accident shows it is in everyone’s interest to have a transparent
regulatory mechanism for hazardous industrial activity. The safety and welfare of workers
and the public at large cannot be compromised. A rigorous approach to accident reporting
must become part of the process if the weak spots in regulation are to be addressed.
National Crime Records Bureau data provide insights into casualties caused by industrial
boiler and gas cylinder explosions — there were 61 deaths in 2015 — and the rise in the
number of accidents over the previous year points to the need for strict enforcement of
safety protocols. The loss suffered by families of workers due to an accident that could have
been averted cannot be compensated just financially. It must be the Centre’s endeavour to
see that measures taken to make it easy to do business do not translate into lack of
regulation, and putting lives at risk. Administrative reform can eliminate the corruption of
inspector raj and achieve transparent regulation, while keeping the workplace safe.
EDITORIAL

On Rohingya crisis: Suu Kyi in denial


NOVEMBER 04, 2017 00:02 IST
UPDATED: NOVEMBER 03, 2017 23:53 IST

The global community cannot afford to ignore Myanmar’s treatment of the


Rohingya

N early three months after violence escalated against the Rohingya in Myanmar’s
Rakhine State, leading to the exodus of more than half a million to neighbouring
Bangladesh, State Counsellor Aung San Suu Kyi finally visited the region. By all accounts,
Ms. Suu Kyi had little more than platitudes to offer and her words showed no recognition
that what transpired is a “textbook example of ethnic cleansing”, as the UN Human Rights
chief put it. This is extremely disappointing. Ms. Suu Kyi endured years of house arrest and
unremitting hostility from the military junta before emerging victorious in a free and fair
election two years ago. But despite taking over a top post after the election, her civilian
government’s powers have been clipped as the military still holds sway over defence, home
affairs and border issues. Ms. Suu Kyi, a recipient of the Nobel Peace Prize, has found it
pragmatic not to challenge the official rhetoric in Myanmar, which suggests the military’s
actions were aimed at tackling “terror” in Rakhine. This could be for two reasons. First, she
does not want to upset the fragile balance of power in the fledgling democracy after years
of rule by the junta. Second, there is a clear lack of empathy for the Rohingya in a country
that has seen the rise of Buddhist and Bamar majoritarianism that has corresponded with
an official “othering” of the Rohingya, who are Muslims, as non-citizens. Despite the
widespread international condemnation of her government’s actions, Ms. Suu Kyi has
sought to pander to the domestic gallery by defending the military’s actions in Rakhine.
Her conduct during her visit to the region this week suggests that she has no intention of
effecting any real or meaningful change in her government’s position on the Rohingya.
The Rohingya, meanwhile, have been left to deal with themselves, unwanted and stateless
in their homeland and forced to migrate, mostly to Bangladesh, in hazardous conditions.
Dhaka has been trying to drum up support and relief for the constant and unremitting
stream of refugees making their way to Bangladeshi soil. Against this background, it is
unfortunate that New Delhi has turned its back on the Rohingya refugees, leading to
perceptions that it has failed to rise to its status as a regional power and take the lead in
dealing with the humanitarian crisis. The Myanmar government has said that it will
repatriate returning Rohingya if they prove they were residents of Rakhine, but it is not
clear how the refugees would be able to do so having been denied citizenship and having
fled their villages under duress with barely anything in hand. Myanmar’s evasiveness
makes it all the more imperative that the international community, including India,
quickly provide succour for the hundreds of thousands of Rohingya who are living on the
edge.
Succour - assistance and support in times of hardship and distress.
Wetland - A wetland is a land area that is saturated with water, either permanently or seasonally, such that it takes on the
characteristics of a distinct ecosystem. The primary factor that distinguishes wetlands from other land forms or water
bodies is the characteristic vegetation of aquatic plants, adapted to the unique hydric soil. Wetlands play a number of
roles in the environment, principally water purification, flood control, carbon sink and shoreline stability. Wetlands are
also considered the most biologically diverse of all ecosystems, serving as home to a wide range of plant and animal life.
See Annexure ..

EDITORIAL

Marooned once more: on Chennai's need for flood


management Marooned - leave (someone) trapped and alone
NOVEMBER 06, 2017 00:02 IST in an inaccessible place, especially an island
UPDATED: NOVEMBER 06, 2017 00:10 IST

Chennai needs integrated flood management, especially the revival of lakes and water
tanks

C hennai’s date with a strong northeast monsoon ought to be a cause for all-round relief
since the water fortunes of more than eight million residents of the metropolitan region
depend on this weather system. Yet, the torrential rains in the meteorological sub-division,
exceeding the normal by 93% in the period of four days from November 1, left tens of thousands
of citizens in a state of despair. Flood waters marooned them in the rapidly growing suburban
housing clusters, with many having to flee to safer places fearing a repeat of the deluge of 2015.
While there have been efforts to alleviate immediate misery through the distribution of relief
material in some places, the larger issue of how the city deals with flood and drought cycles
remains unaddressed. Chennai is a lower elevation coastal city with global aspirations, and very
high population density. Scientific management should have ensured the preservation of the
many traditional lakes and canals that existed in the city’s core a century ago to absorb the intense
downpour of about 1,300 mm of rain, most of it in an annual window of a few weeks. Successive
governments have allowed the mindless draining of wetlands and their conversion into
expensive real estate, with catastrophic consequences. Regrettably, the great flood two years ago,
which left many dead and families impoverished, has not yielded a policy course correction. If the
Tamil Nadu government is serious about putting Chennai on the global map of economically
viable cities, it must move beyond the creation of weak storm water drains to an integrated flood
management system.

Chennai and its sprawl extending to two neighbouring districts should return to the traditional
wisdom of creating tanks and lakes for water storage, and rejuvenating old silted ones, in order to
harvest the floods and replenish depleted groundwater. The finding from one study in 2013 shows
that 27 tanks have totally disappeared and another 400 have lost almost their entire capacity. This
underscores the need to revive such natural sponges. Inviting the community to monitor the
health of the tanks and lakes can keep out encroachers, who are often protected by patron-
politicians. Yet, such measures can work only when the deficit of good housing and civic
infrastructure is actively addressed. Tamil Nadu, one of India’s most urbanised States, has a poor
record in this area, resulting in fragile slums. New housing has mushroomed in Chennai’s
suburbs, where municipal bodies are mired in incompetence and corruption. It is these localities
with little infrastructure that have borne the brunt this year. Looking ahead, the priority for the
State should be to integrate flood management using expert opinion and public consultation.
Remedial structures should be built for existing localities. Poor waste management is
exacerbating the problem by blocking drains, canals and lakes, while ill-planned road projects are
cutting off flood flows. These have to be immediately addressed. The tendency to treat floods and
drought as events to dole out patronage is preventing Chennai from forging robust solutions.
Sprawl - an ungainly or carelessly relaxed position in which one's arms and legs are spread out.
EDITORIAL

Change, yet continuity: on Jerome Powell's nomination as


US Fed Chief
NOVEMBER 06, 2017 00:02 IST
UPDATED: NOVEMBER 06, 2017 00:15 IST

Jerome Powell’s nomination as Fed chief will reassure U.S. and global markets

P resident Donald Trump’s decision to name Federal Reserve Board Governor Jerome
Powell as his pick to head the central bank signals that the businessman-turned-
politician has plumped for continuity even as he ushers in change. For a President whose first
nine months in office have been marked by a succession of signature appointments to key
posts ranging from a Supreme Court Justice to heads of federal regulatory bodies, the choice
of the 64-year-old lawyer and former investment banker suggests that Mr. Trump’s business
instincts won. Mr. Powell, who was appointed by President Barack Obama as Fed Governor in
2012 and worked alongside the incumbent Chair, Janet Yellen, over the past five years, will
represent policy continuity in the monetary management of the world’s largest economy.
After all, with the economic engine ticking over nicely and creating jobs, and the markets
buoyant, there was little reason for Mr. Trump to run the risk of choosing someone who may
have altered the calibrated approach the Fed has adopted in overseeing the recovery from the
global financial crisis. Two of the other short-listed probables — Kevin Warsh and John Taylor
— had both been critics of the Fed’s actions. That Mr. Powell had served in the Treasury
Department during the George H.W. Bush administration means that he will, in all likelihood,
receive bipartisan backing in the Senate.
Emerging markets, including India, can heave a small sigh of relief with Mr. Trump’s choice,
given the influence the Fed’s interest rate decisions have on global capital flows. Delivering a
lecture on ‘Prospects for Emerging Market Economies in a Normalising Global Economy’ last
month, Mr. Powell acknowledged the challenges these economies faced as a result of the
‘normalisation’ of global financial conditions — shorthand for the slow but sure reining in of
the easy money conditions that had undergirded policy responses to the financial crisis. And
crucially, he stressed that “the best thing the Federal Reserve can do — not just for the United
States, but for the global economy at large — is to keep our house in order through the
continued pursuit of our dual mandate” of fostering economic conditions that achieve both
stable prices and maximum sustainable employment. But it is not only the stability aspect
that won Mr. Powell the nod. A former Carlyle Group partner with a stated keenness to adopt a
light-touch approach to regulation, he is expected to be closely aligned to Mr. Trump’s
positions on easing regulatory oversight of big banks and financial markets. And with other
top positions at the central bank to be filled by the President soon, Mr. Powell could end up
overseeing a Fed that reflects Mr. Trump’s political leanings as well.
Annexure

Ramsar sites (Wetlands) in India: Memorize faster 5/22/2016

A wetland is a place where the land is covered by water. Marshes, ponds, the edge of a lake/ocean, the delta at
the mouth of a river, low-lying areas that frequently flood — all of these are wetlands. Wetlands of international
importance are also known as Ramsar sites.

Why wetlands are called ‘Ramsar sites’?

Ramsar is a city in Iran. In 1971, an international treaty for conservation and sustainable use of wetlands was
signed at Ramsar. The Convention’s mission is “the conservation and wise use of all wetlands through local
and national actions and international cooperation, as a contribution towards achieving sustainable development
throughout the world”.

More than 2200 wetlands of international importance!


Today, the Ramsar List is the world’s largest network of protected areas.
There are currently over 2,200 Ramsar Sites around the world. They cover over 2.1 million square
kilometres, an area larger than Mexico.
The world’s first Site was the Cobourg Peninsula in Australia, designated in 1974.
The largest Sites are Ngiri-Tumba-Maindombe in the Democratic Republic of Congo and Queen Maud
Gulf in Canada; these Sites each cover over 60,000 square kilometres.
The countries with the most Sites are the United Kingdom with 170 and Mexico with 142.
Bolivia has the largest area with 148,000 km2 under Ramsar protection.

1/6
Ramsar sites (Wetlands) in India: State-wise compilation

Sl. No. Wetland name State

2/6
1. Kolleru Lake Andhra Pradesh

2. Deepor Beel Assam

3. Nalsarovar Bird Sanctuary Gujarat

4. Chandertal Wetland

5. Pong Dam Lake

6. Renuka Wetland Himachal Pradesh

7. Hokera Wetland

8. Surinsar-Mansar Lakes

9. Tsomoriri

10. Wular Lake Jammu & Kashmir

11. Ashtamudi Wetland

12. Sasthamkotta Lake

13. Vembanad-Kol Wetland Kerala

14. Bhoj Wetland Madhya Pradesh

15. Loktak Lake* Manipur

16. Bhitarkanika Mangroves

17. Chilika Lake Orissa

18. Harike Lake

19. Kanjli

20. Ropar Punjab

21. Sambhar Lake

22. Keoladeo National Park* Rajasthan

23. Point Calimere Wildlife and Bird Sanctuary Tamil Nadu

24. Rudrasagar Lake Tripura

25. Upper Ganga River (Brijghat to Narora Stretch) Uttar Pradesh

26. East Calcutta Wetlands West Bengal

Sl. No.
Wetland name
State
1.
Kolleru Lake
Andhra Pradesh
2.
Deepor Beel
Assam
3.

3/6
Nalsarovar Bird Sanctuary
Gujarat
4.
Chandertal Wetland

Himachal Pradesh

5.
Pong Dam Lake
6.
Renuka Wetland
7.
Hokera Wetland

Jammu & Kashmir

8.
Surinsar-Mansar Lakes
9.
Tsomoriri
10.
Wular Lake
11.
Ashtamudi Wetland

Kerala

12.
Sasthamkotta Lake
13.
Vembanad-Kol Wetland
14.
Bhoj Wetland
Madhya Pradesh
15.
Loktak Lake*
Manipur
16.
Bhitarkanika Mangroves

Orissa

17.
Chilika Lake
18.
4/6
Harike Lake

Punjab

19.
Kanjli
20.
Ropar
21.
Sambhar Lake

Rajasthan

22.
Keoladeo National Park*
23.
Point Calimere Wildlife and Bird Sanctuary
Tamil Nadu
24.
Rudrasagar Lake
Tripura
25.
Upper Ganga River (Brijghat to Narora Stretch)
Uttar Pradesh
26.
East Calcutta Wetlands
West Bengal

*Both sites are included in Montreux Record.

Three pillars of Ramsar Convention

Under the “three pillars” of the Convention, the Contracting Parties commit to:

1. work towards the wise use of all their wetlands;


2. designate suitable wetlands for the list of Wetlands of International Importance (the “Ramsar List”) and

5/6
ensure their effective management;
3. cooperate internationally on transboundary wetlands, shared wetland systems and shared species.

The Montreux Record


The Montreux Record is a register of wetland sites on the List of Wetlands of International Importance where
changes in ecological character have occurred, are occurring, or are likely to occur as a result of technological
developments, pollution or other human interference. It is maintained as part of the Ramsar List.

Interesting facts about Ramsar Convention/Sites


The number of contracting parties is 169.
At the time of joining the Convention, each Contracting Party undertakes to designate at least one wetland
site for inclusion in theList of Wetlands of International Importance.
The inclusion of a “Ramsar Site” in the List embodies the government’s commitment to take the steps
necessary to ensure that its ecological character is maintained.
Wetlands included in the List acquire a new national and international status: they are recognized as
being of significant value not only for the country or the countries in which they are located, but for
humanity as a whole.
There are nine criteria for identifying wetlands of international importance.
There are six Ramsar regions.
The 2nd of February each year is World Wetlands Day, marking the date of the adoption of the
Convention on Wetlands on 2 February 1971.
The Ramsar Sites Information Service (RSIS) is a searchable database which provides information on
each Ramsar Site.
The Ramsar Convention works closely with six other organisations known as International Organization
Partners (IOPs). These are:

Birdlife International.
International Union for Conservation of Nature (IUCN).
International Water Management Institute (IWMI).
Wetlands International.
WWF International.
Wildfowl & Wetlands Trust (WWT).

Compiled by: Yuvaalex

© 2017 ClearIAS.com. All rights reserved.

© 2017 ClearIAS.com. All rights reserved.

6/6
EDITORIAL

Girl power: on the Women's Asia Cup hockey win


NOVEMBER 07, 2017 00:02 IST
UPDATED: NOVEMBER 06, 2017 23:33 IST

The women’s hockey team presents the best reason for enhanced support, by
winning

I ndia may have won the final of the women’s Asia Cup hockey tournament against
China in a penalty shootout, but it was a fully deserving victory. Throughout their
campaign in Japan, team members played out of their skin to register the win, which has
secured them a spot in next year’s World Cup emphatically on merit, not as wild-card
entrants. The triumph came against formidable hurdles, and in the absence of any
expectations. Indian women were never the favourites, going into the tournament ranked
12th in the world and fourth in Asia — behind World No. 8 China, Korea and Japan.
Incidentally, India defeated defending champion Japan in the semi-finals. This happened
despite a degree of pre-tournament disarray. The team lost its second coach in the space of
a year, and Harendra Singh came to the assignment just a month before the Asia Cup, that
too with no previous experience of having worked with a women’s hockey team. The team
had other issues to grapple with as well; the fitness and skill levels had slipped. The lack of
expectations, sadly, was clear from the fact that there was no live telecast, not even online
streaming. Such live updates as there were came via social media.

The hockey federations must heed this victory and use this occasion to considerably scale
up support to the women’s game. The insistence on appointing foreign coaches, despite the
clear discomfort and disconnect among the women in matters of communication, has
unnecessarily cost India too much time. The inadequate competitive exposure made
available for the team was unfortunate. Unlike the men, women players start early; some
in the senior team are as young as 16. Their careers often end early. That the women, most
of them in their early 20s, still continue to go out and give their best is a testament to their
dedication. Railways remains the biggest provider of employment — but goalkeeper Savita
Punia, the star of the final, and a veteran of over 100 matches and perhaps Asia’s best, is yet
to get a job. Harendra Singh has his work cut out too. He has a reputation for being
obsessed with results. He is a disciplinarian who has the ability to coax the best from his
players, lead from the front and put in the hard yards. In fact, it is a reflection of the team’s
hard work, dedication, discipline and focus on the game that someone who is regarded as
the most difficult Indian coach to work with is already in awe of his players. The road ahead
is arduous, and 2018 will be crucial for the women and men, with the World Cup and the
Commonwealth Games as well as an Olympic spot to be secured through the Asian Games.
Captain Rani Rampal’s girls have shown they can do it.
EDITORIAL

Royal flush: on the Saudi Crown Prince's surprise crackdown


NOVEMBER 07, 2017 00:02 IST
UPDATED: NOVEMBER 06, 2017 23:34 IST

The reasons behind the Saudi Crown Prince Mohammed bin Salman’s surprise crackdown
are still not clear

E ver since he was named the defence minister of Saudi Arabia in 2015, Mohammed bin
Salman has had little patience for the way the kingdom is being ruled. In June, two and a
half years into the reign of his father King Salman, he replaced Mohammed bin Nayef as Crown
Prince. In recent weeks, he had taken on the Salafi religious establishment. On Sunday, he
sprang another surprise by ordering the arrest of senior government ministers, officials and 11
Princes, including the billionaire Alwaleed bin Talal, and the powerful chief of the National
Guard, Mutaib bin Abdullah. The immediate reason for the arrests is not known. The palace
version is that they were carried out as part of a new campaign against corruption that is
spearheaded by Prince Mohammed. But the recent crackdowns suggest that Prince Mohammed is
consolidating his power. He first had Prince Nayef removed from his path to the throne as Crown
Prince. As one of the richest among Saudi royals, Prince Alwaleed is known for his cosy ties with
Western governments and less conservative views. Prince Mutaib, a favourite son of the late King
Abdullah, is an influential figure within the palace. By arresting both, Prince Mohammed has
potentially neutralised the money and power centres that could pose challenges to him in the
future.
With the latest arrests, at just 32 years of age Prince Mohammed appears to have established
himself as the most powerful Saudi Crown Prince in decades. He is practically in charge of key
policy decisions and has taken control of all branches of the Saudi security services — the military,
internal security and the National Guard. He clearly has the King’s ear. Still, Prince Mohammed is
playing a risky game. In a short span of time, he has opened multiple fronts in the still-unfolding
internal power struggle. In Saudi Arabia, where the rulers traditionally distribute power among
the different branches of the royal family as a balancing tactic and get their decisions approved by
the ulema for legitimacy, Prince Mohammed’s moves are upending tradition. By concentrating
power in his own hands and turning against other Princes as well as some clerics, he has upset the
balance in the system. Quick consolidation of power could perhaps allow him to reshape the
governance model. The anti-corruption campaign, which sounds much like that led by Chinese
President Xi Jinping, will have popular support, which he could use to continue to target his
rivals. But Prince Mohammed’s track record so far is devoid of any major achievement. His
ambitious plan to reform the economy has been a non-starter. His foreign policy moves also
backfired with the Yemen war spinning further out of control and the Syrian civil war turning in
favour of President Bashar al-Assad, who is seen as an adversary by Riyadh. If he continues to
make mistakes the game could go awry, triggering an open power struggle within the House of
Saud. With the Riyadh-Tehran rivalry in West Asia hotting up again, these developments are also
bound to have repercussions beyond Saudi Arabia.
Water Stress - Water stress occurs when the demand for water exceeds the available amount during a certain period
or when poor quality restricts its use. Water stress causes deterioration of fresh water resources in terms of quantity
(aquifer over-exploitation, dry rivers, etc.) and quality (eutrophication, organic matter pollution, saline intrusion, etc.)

EDITORIAL

Spirit of Paris: on the climate change meet in Bonn


NOVEMBER 08, 2017 00:02 IST
UPDATED: NOVEMBER 08, 2017 00:45 IST

The climate change meet in Bonn must heed the 2015 targets, despite the U.S. reversal

T he 23rd conference of the UN Framework Convention on Climate Change under way in


Bonn faces the challenge of raising the ambition of the world’s leaders, and giving
practical form to the provisions of the Paris Agreement. Although 169 countries have ratified
the accord, and there is tremendous support for greener, low-risk pathways to growth
worldwide, the Trump administration in the U.S., one of the top emitters of greenhouse gases
(GHGs), has announced it will withdraw from the pact. Even if it will take until 2020 to
achieve an actual withdrawal, the U.S. action reverses the overall momentum achieved in Paris
in 2015, and negates President Barack Obama’s legacy of regulations designed to reduce
America’s GHG emissions, especially from the use of coal. It is heartening that China, which
has achieved rapid economic growth and leads in GHG emissions, is firmly behind the pact to
reduce the risk of climate change. There is steady progress in the growth of renewable energy
sources as they become cheaper and the efficiency of solar, wind and energy storage
technologies improves. As UNFCCC Executive Secretary Patricia Espinosa has said, the time is
now to firm up the tasks set out in the agreement reached in Paris, notably on funds to
mitigate and adapt to climate change. The Agreement has a benchmark of raising $100 billion
a year by 2020.

Major risks from climate change, such as extreme weather phenomena, loss of agriculture,
water stress and harm to human health, pose a threat to millions around the world. For some
countries, such as Fiji, which holds the presidency of the Bonn conference, and other small
island-states, the future is deeply worrying because of the fear that sea levels may rise sharply
due to climate change. The recent Emissions Gap Report from the UN underscores the terrible
mismatch between the voluntary pledges made by countries for the Paris Agreement and
what is necessary to keep a rise in global average temperature below 2º C, preferably 1.5º C. All
major countries, especially those that have depleted the global carbon budget by releasing
massive amounts of GHGs since the Industrial Revolution, have to respond with stronger caps
in their updated pledges under the Paris Agreement. India’s emissions have been rising
overall, but it has committed itself to lowering the emissions intensity of its GDP by 33-35%
by 2030 from the 2005 level. By some estimates, India has been awarded among the highest
levels of multilateral climate funding at $745 million since 2013. Securing funds for
mitigation and adaptation is a high priority for India, but it must ensure that States acquire
the capacity to absorb such assistance efficiently. While the emphasis on a giant renewable
energy programme has won global acclaim, the focus is equally on India’s readiness to
embrace green technologies across the spectrum of activity, including buildings and
transport.
India Inc. is a common term used by the Indian media to refer to the formal (comprising government and
corporate) sector of the nation. It employed 7 percent of the workforce in 2000[1] and contributed 60 per cent
of the nominal GDP of the nation.

EDITORIAL

Stock-taking: on India Inc's Q2 earnings


NOVEMBER 08, 2017 00:02 IST
UPDATED: NOVEMBER 08, 2017 00:46 IST

Corporate earnings show a mild recovery, but valuations remain a major concern

I ndia Inc.’s earnings performance for the second quarter of the financial year has
turned out to be largely in line with street expectations. Both revenue and profits,
when compared to the results reported for the first quarter ending June, have shown signs
of improvement that suggest a slow but steady pick-up in demand in the wider economy.
This is comforting news for many who feared that the twin shocks of demonetisation and
the hasty implementation of the GST would have significant medium to long-term effects
on the economy. The quick rebound in the earnings of corporate India, however, should not
come as too much of a surprise. Both demonetisation and the introduction of the GST,
while definitely disruptive, are transitory in terms of their economic impact. It is also
worth noting that most analysts had revised their earnings estimates downwards in the
wake of the rapid policy changes. Such moderation in expectations too has probably played
a part in making the earnings performance look better. However, the financials of many
companies are yet to fully recover to match their performance prior to demonetisation.
This is striking in sectors such as microfinance and housing finance, where companies
have struggled to revive their loan book and disbursements growth rates, also in
companies dependent on consumer demand. Many have clocked profit growth through
cost-cutting rather than superior revenues.

Going forward, however, a return to largely normal earnings growth is more likely than not
as the wider economy returns to normal under a more stable policy climate. None of this is
to deny the expensive valuations at which Indian stocks are currently priced by jubilant
investors. The market, which has been hitting new highs every passing week, has not cared
much about the lack of sufficient earnings growth. It has been generous in offering sky-
high prices to initial public offerings, and now trades at a historically expensive price to
earnings ratio, calculated based on trailing earnings, of well over 24. The tightening of
liquidity by major central banks like the U.S. Federal Reserve has not dampened its spirits
either. Domestic mutual funds have been more than able to fill the gap left by foreign
investors, thanks to a surge in retail investors putting in money through monthly plans.
The Centre’s recent initiatives to ramp up spending in the economy by reviving credit
growth and public infrastructure spending could yield some positive results, but will take
time to materialise. Visibility on the time horizon for a full-blown and sustainable uptick
in corporate earnings remains as hazy as the smog that is engulfing the capital where
policy-makers are fire-fighting on GST. A swift and tactful unravelling of the GST tangles
could, in fact, be the quickest fillip for reviving consumption and investment.
EDITORIAL

Capital crisis: on Delhi's deteriorating air quality


NOVEMBER 09, 2017 00:02 IST
UPDATED: NOVEMBER 09, 2017 01:02 IST

The Centre and States must urgently address farm residue burning in north India

D elhi’s air quality deteriorates with unfailing regularity at this time of the year, with large swathes of
north India in the grip of a suffocating smog, but the State governments that can make it easier for
millions to breathe do not act with any sense of urgency. That it has turned into a public health emergency in
the capital, with the air quality index touching extremely hazardous levels in some parts, necessitating the
closure of primary schools, has further lowered its standing. It is unconscionable for governments, through
indifference and inaction, to subject citizens to such toxic air, and cause extreme suffering especially among
people with respiratory ailments and impaired lung function. The smog that envelops the region is
exacerbated by the burning of biomass in Punjab and Haryana, and the winter atmosphere is marked by
weak ventilation. An analysis of local sources by IIT-Kanpur last year pointed to construction dust, vehicular
pollution, and domestic and industrial emissions as other major factors. Clearly, the burden of such chronic
problems has outweighed the benefits conferred by measures such as the ban on Deepavali crackers, and in
the past, the shift to compressed natural gas for commercial vehicles and restricting car use to odd and even
number plates on alternate days. A comprehensive solution demands that the governments of Delhi, Punjab,
Haryana and Uttar Pradesh, assisted by the Centre, address farm residue burning and construction dust.
The post-monsoon — as opposed to pre-monsoon — burning of rice and wheat residue releases maximum
aerosols that contribute to the volume of PM2.5, which gets embedded in the lungs. Automation of farm
operations leaves root-bound crop waste after machine harvesting, running to millions of tonnes, requiring a
solution of scale. Sustainable residue removal cannot be achieved by the farmers alone, and requires help
from the state machinery. Here, Delhi Chief Minister Arvind Kejriwal should be commended for his initiative
to discuss the modalities of joint action with the Punjab and Haryana governments. The national capital
needs a major greening effort. Unpaved surfaces raise dust levels as in all Indian cities, but civic agencies
ignore the problem. There is every reason to think that even the Ministry of Environment’s orders issued in
2015 under the Air (Prevention and Control of Pollution) Act, 1981 to comprehensively green Delhi’s road
margins and open spaces were not pursued seriously. Shifting more of the city’s travel to comfortable public
transport can cut fine particulates in congested areas and improve the air for residents. Many such initiatives
were taken up by China in its cities to reduce exposure to PM2.5 that produces morbidity from cardiovascular
and respiratory diseases and leads to premature death. Only a determined response to the crisis can spare
Delhi of its infamous tag as one of the most polluted cities on the planet.

See Annex for PM 2.5


EDITORIAL

Uncertainty in the Kenyan presidential elections


NOVEMBER 09, 2017 00:02 IST
UPDATED: NOVEMBER 09, 2017 00:58 IST

A legal challenge to the presidential election could extend the political crisis

W ith a petition filed in Kenya’s Supreme Court against the October 26 rerun of the presidential
election, the country risks an intensification of political turmoil. The challenge is the second since
the initial elections in August, which were overturned on grounds of alleged discrepancies in tabulation at
the polling stations and the computer systems. That unprecedented ruling in September was widely hailed
as an exemplar of judicial independence. Since then, President Uhuru Kenyatta has rammed through
legislation that circumscribes the authority of the electoral mechanism and legal scrutiny of polls. The sense
of intimidation was palpable when most of the judges failed to show up to hear a plea for the postponement
of the vote. The outcome of the latest legal challenge is therefore far from certain. If the judges again decide
not to uphold the latest victory for the incumbent, the absence of a genuine contest could prove to be a
critical factor. The opposition leader, Raila Odinga, had withdrawn from the second race in protest against
the new legislation and the lack of material improvement on the ground. Days before the October election,
the election commission lost the services of top officials, with one fleeing the country saying she feared for
her life. Such a turn of events came as a chilling reminder of the mysterious death of a high functionary of the
electoral body just before the elections in August. Moreover, there was considerable scepticism over the
credibility of the October vote, as a large-scale revamp of the electoral system was seen to be impossible
within that timeframe.

This is why there is speculation that the court may see merit in the petitioner’s claim that the polls were
anything but free and fair. Both Mr. Kenyatta and Mr. Odinga bear much moral responsibility for the current
stalemate and the violence. It is time they negotiated a lasting settlement to restore credibility to Kenya’s
democracy. That requires them, especially Mr. Kenyatta, to play by the rules laid down under the 2010
constitution, which provides for greater devolution of powers. Above all, there needs to be an end to the near-
monopoly of power enjoyed by the Kikuyu and the Kalenjin ethnic communities since the country’s freedom
from colonial rule. Memories of the killing of hundreds in the aftermath of the 2007 elections should
underscore the urgency of bringing the current fluid situation within control. For its part, the African Union
must exert political pressure on Kenya’s two veteran politicians to prevent the escalation of the crisis beyond
Kenya’s borders. This week the government lowered the forecast for GDP growth to below 5%, with analysts
blaming the political crisis for the negative sentiment. The social cost of this upheaval would be incalculable.
Strengthening the election mechanism against political interference would be an important first step.
Annex

Fine Particles (PM 2.5) Questions and


Answers
Fine particulate matter (PM2.5) is an air pollutant that is a concern for people's health when
levels in air are high. PM2.5 are tiny particles in the air that reduce visibility and cause the air
to appear hazy when levels are elevated. Outdoor PM2.5 levels are most likely to be elevated
on days with little or no wind or air mixing. The New York State Departments of Health
(DOH) and Environmental Conservation (DEC) alert the public by issuing a PM2.5 Health
Advisory when PM2.5 concentrations in outdoor air are expected to be unhealthy for
sensitive groups.

What is Particulate Matter 2.5 (PM2.5)?


The term fine particles, or particulate matter 2.5 (PM2.5), refers to tiny particles or droplets in
the air that are two and one half microns or less in width. Like inches, meters and miles, a
micron is a unit of measurement for distance. There are about 25,000 microns in an inch. The
widths of the larger particles in the PM2.5 size range would be about thirty times smaller than
that of a human hair. The smaller particles are so small that several thousand of them could
fit on the period at the end of this sentence.

How can PM2.5 affect my health?


Particles in the PM2.5 size range are able to travel deeply into the respiratory tract, reaching
the lungs. Exposure to fine particles can cause short-term health effects such as eye, nose,
throat and lung irritation, coughing, sneezing, runny nose and shortness of breath. Exposure
to fine particles can also affect lung function and worsen medical conditions such as asthma
and heart disease. Scientific studies have linked increases in daily PM2.5 exposure with
increased respiratory and cardiovascular hospital admissions, emergency department visits
and deaths. Studies also suggest that long term exposure to fine particulate matter may be
associated with increased rates of chronic bronchitis, reduced lung function and increased
mortality from lung cancer and heart disease. People with breathing and heart problems,
children and the elderly may be particularly sensitive to PM2.5.

Where does PM2.5 come from?


There are outdoor and indoor sources of fine particles. Outside, fine particles primarily come
from car, truck, bus and off-road vehicle (e.g., construction equipment, snowmobile,
locomotive) exhausts, other operations that involve the burning of fuels such as wood,
heating oil or coal and natural sources such as forest and grass fires. Fine particles also form
from the reaction of gases or droplets in the atmosphere from sources such as power plants.
These chemical reactions can occur miles from the original source of the emissions. In New
York State, some of the fine particles measured in the air are carried by wind from out-of-
state sources. Because fine particles can be carried long distances from their source, events
such as wildfires or volcanic eruptions can raise fine particle concentrations hundreds of
miles from the event.

PM2.5 is also produced by common indoor activities. Some indoor sources of fine particles
are tobacco smoke, cooking (e.g., frying, sautéing, and broiling), burning candles or oil
lamps, and operating fireplaces and fuel-burning space heaters (e.g., kerosene heaters).
Is there an air quality standard for PM2.5 in outdoor air?
Yes, the United States Environmental Protection Agency (EPA) established National
Ambient Air Quality Standards for PM2.5 in 1997 and revised them in 2006. National
Ambient Air Standards are established to be protective of public health. The short-term
standard (24-hour or daily average) is 35 micrograms per cubic meter of air (µg/m3) and the
long-term standard (annual average) is 15 µg/m3. A microgram is a unit of weight. There are
a million micrograms in a gram, and a pound is equal to about 450 grams.

How will I know when PM2.5 levels are, or will be,


elevated outside?
Outdoor air levels of fine particles increase during periods of stagnant air (very little wind
and air mixing), when the particles are not carried away by wind, or when winds bring
polluted air into the state from sources outside the state. In general, as the levels of PM2.5 in
outdoor air increase, the air appears hazy and visibility is reduced. These conditions are
similar in appearance to high humidity or fog. The New York State Department
Environmental Conservation informs the public whenever fine particle concentrations in
outdoor air are expected to be elevated. Every weekday morning the Department of
Environmental Conservation will review weather conditions and data from their air
monitoring stations to determine if, for that day or the following day, fine particle levels are
expected to exceed levels considered unhealthy for sensitive groups. If it is likely that this
level will be exceeded, the agency will contact the media so that a Particulate Matter Health
Advisory can be carried on afternoon and evening broadcasts. The Department of
Environmental Conservation also provides PM2.5 monitoring data and PM2.5 forecasts on its
web site.

Are there ways to reduce my exposure to PM2.5?


When outdoor levels of PM2.5 are elevated, going indoors may reduce your exposure,
although some outdoor particles will come indoors. If there are significant indoor sources of
PM2.5, levels inside may not be lower than outside. Some ways to reduce exposure are to
limit indoor and outdoor activities that produce fine particles (for example, burning candles
indoors or open burning outdoors) and avoid strenuous activity in areas where fine particle
levels are high.

Who can I contact if I have more questions?


If you would like additional information about the health effects of fine particles, you can
call the NYS Department of Health at 518-402-7820 or 800-458-1158. To find out if an
advisory has been issued or to learn more about air quality, you can call the Department of
Environmental Conservation's toll-free air quality hotline: 1-800-535-1345 or visit their Air
Quality Index (AQI) website where you can also view state PM2.5 maps and real-time
monitoring data for PM2.5.
EDITORIAL

Zimbabwean stakes
NOVEMBER 10, 2017 00:02 IST
UPDATED: NOVEMBER 09, 2017 22:38 IST

Robert Mugabe chooses his wife over a long-time colleague

Z imbabwean President Robert Mugabe’s decision to fire his Vice-President Emmerson Mnangagwa,
citing disloyalty and deceitfulness, has triggered another political crisis ahead of next year’s
presidential election. Mr. Mnangagwa was Mr. Mugabe’s right-hand man in the ruling Zimbabwe African
National Union-Patriotic Front (Zanu-PF) and was widely tipped to be his successor. But there were
murmurs in recent months that Mr. Mnangagwa and Grace Mugabe, the President’s second wife, were
involved in a shadow fight for influence. The Zanu-PF has announced that the 93-year-old Mr. Mugabe will
be its presidential candidate for next year’s election. But given his age and health, in the event of a victory
the Vice-President’s post would set up the incumbent for the big succession. By firing Mr. Mnangagwa, Mr.
Mugabe appears to have turned the tide in favour of his wife. Ruling party factions have started promoting
Ms. Mugabe’s name as the next Vice-President and the party is expected to make an announcement next
month. The Zanu-PF has also launched a crackdown on those who were linked to Mr. Mnangagwa, who has
fled the country. Mr. Mnangagwa’s exit could hurt the President politically. He has been a heavyweight in
the faction-ridden Zanu-PF for a long time. He is being alienated at a time when a seven-party Opposition
alliance was planning a joint candidate against Mr. Mugabe to capitalise on the widespread public discord
over economic miseries.
Mr. Mugabe, a former Marxist guerrilla who came to power in 1980 riding on strong anti-colonial
sentiments and promises to reshape the country’s future, has instead overseen a rapid deterioration of the
economy in recent years. Following unbridled hyperinflation, Zimbabwe had to scrap its dollar altogether
in 2015 and adopt a multi-currency system, which has done little to ease cash shortages. The country’s
infrastructure is crumbling and government services are a shambles. But public resentment and opposition
unity may not necessarily lead to Mr. Mugabe’s electoral defeat. In the 37 years of his rule he has shown that
he enjoys considerable support, particularly among the black working population, and is ready to go to any
extreme to retain his grip on power. Barring a brief period when he was forced to reach a power-sharing
agreement with the opposition, Mr. Mugabe has largely had his own way in governance. The stakes are high
in the coming election, with Ms. Mugabe having publicly expressed her desire to succeed the President and
the Zanu-PF facing a split after Mr. Mnangagwa’s expulsion. All this points to more chaos, at a time when
the government’s focus should be on addressing the economic challenges. For his part, Mr. Mugabe should
allow a free and fair election to take place next year and ensure a smooth transition of power, both within
the party and in the government. It’s time he finally acted like a statesman.
EDITORIAL

Under pressure
NOVEMBER 09, 2017 22:38 IST
UPDATED: NOVEMBER 09, 2017 22:38 IST

Why police investigators should not jump to conclusions, influenced by public outrage

T he poor quality of police investigation in the country has once again come under focus. The twist in
the probe into the murder of a seven-year-old boy at a school in Gurugram, Haryana, in September
exposes how unreliable the police can be when it comes to investigating grave crimes amidst a public
outcry and close media scrutiny. The Central Bureau of Investigation now claims that it was a 16-year-old
student who murdered Pradyuman Thakur at the Ryan International School, and not the bus conductor
arrested earlier for the offence by the local police. If the latest account is true, the police must explain
why it made the sensational claim that Ashok Kumar, the conductor of the school bus, had committed
the murder in the school’s washroom on September 8, and that he had “confessed” to it. The motive, the
police had claimed, was that the child had resisted his attempt to sexually assault him. The CBI says that
in fact a Class XI student had killed his junior school mate in a bid to get examinations postponed and a
parent-teacher meeting called off. Closed-circuit television footage is cited as a crucial piece of evidence
against the senior student, who is now under arrest, although the CBI says the role of Ashok Kumar
remains under investigation. In their eagerness to show results and demonstrate their efficiency, the
Gurugram police announced the bus conductor’s arrest on the very night of the murder. Reports that the
school’s bus driver was under pressure to identify the knife allegedly used in the murder to be part of the
bus toolkit add to the suspicion that the police were trying to frame the conductor.

Given the media glare that accompanies such tragedies, the police must learn not to succumb to the
temptation to wrap up probes under public pressure. That the police had to extract a false confession is
downright disgraceful, but it is not an isolated case in a country known for its primitive investigative
methods. Studies on police reforms have highlighted the need to make the investigation process more
scientific and more rooted in forensic analysis, but custodial torture and extracted confessions continue
to be reported. The muddle in the Aarushi-Hemraj murder case probe is a telling example of how both the
local police and the CBI can botch up the investigation and lead to unfair incarceration. When two
narratives emerge from different police agencies for a heinous murder, a sense of disquiet among the
public is inevitable. The onus is now on the CBI to avoid such pitfalls and show that the initial narrative
was false and its subsequent account is closer to the truth. Another notable feature of the case is that
there is a likelihood of the 16-year-old suspect being tried as an adult under provisions introduced in
juvenile law in 2016. It would be unfortunate if these provisions were to be reflexively invoked.
EDITORIAL

Record turnout: on the Himachal elections


NOVEMBER 11, 2017 00:15 IST
UPDATED: NOVEMBER 11, 2017 01:18 IST

But the Congress and BJP let down Himachal voters with excessively personal
campaigns

H imachal Pradesh turned out in record numbers for the Assembly elections held on
Thursday, with 74.6% of the electorate casting their votes. This provisional estimate
may be revised a little upwards or downwards, but as of now it is marginally higher than the
previous high of 74.5% in the 2003 polls. Preliminary figures showed uniform voting close to
the same mark across districts, with Kullu district registering the highest turnout of nearly
78%. Such a high level of polling is a trend that has been seen in most States in India since
2010. This is an affirmation of the work done by the Election Commission in updating
electoral rolls, easing the process of voting with the use of electronic voting machines and
photo identity cards, besides seeking to educate more voters about the polling process
through enrolment initiatives. Himachal Pradesh, in any case, has always had robust voter
participation, with much higher turnouts relative to other north Indian States. It is ranked
second in the Human Development Index in the country, and a high HDI has correlated well
with increased electoral participation in a State, as seen in Kerala and Tamil Nadu as well. As
for psephological readings, traditionally higher levels of polling in a State had been seen to
indicate an anti-incumbency mood — but that correlation has broken in recent years, with
turnouts of more than 90%, for example, in Tripura returning the incumbent government.
How it plays out in Himachal Pradesh this year will be known on counting day on December
18.

The contest in Himachal Pradesh is limited largely to the ruling Congress and the Bharatiya
Janata Party, even though the Communist Party of India (Marxist) has attempted to build on
its rare north Indian success in the Shimla mayoral elections of 2012 by focussing on a few
constituencies. The State has alternated between regimes led by the Congress and the BJP in
every election since 1990. At various points of the campaign this year right up to voting day,
the political discourse turned vitriolic and personal. The Congress sought to make the
elections a referendum on the Central government’s policies, by taking up the
implementation of the goods and services tax and the effects of demonetisation. The BJP hit
back by focussing on the corruption cases faced by Chief Minister Virbhadra Singh. The star
campaigners of both parties, Prime Minister Narendra Modi and Congress vice president
Rahul Gandhi, gave the campaign a plebiscitary touch — but in previous elections, voters in
Himachal Pradesh have been influenced by State-specific issues such as the local apple and
tourism economy as well as local infrastructure and social welfare. Now, as the BJP and the
Congress move the focus to Gujarat, they will do well to delineate their positions on social and
economic issues, without the vitriol that marked the campaign in the hill State.
Brent Crude is a major trading classification of sweet light crude oil that serves as a major benchmark price for purchases
of oil worldwide. This grade is described as light because of its relatively low density, and sweet because of its low sulphur
content.
Brent Crude is extracted from the North Sea and comprises
Brent Blend, (see Annex)
Forties Blend,
Oseberg and
Ekofisk crudes (also known as the BFOE Quotation).
The Brent Crude oil marker is also known as Brent Blend, London Brent and Brent petroleum.
The other well-known classifications (also called references or benchmarks) are the OPEC Reference Basket, Dubai
Crude, Oman Crude, Urals oil and West Texas Intermediate (WTI). Brent is the leading global price benchmark for
Atlantic basin crude oils. It is used to price two thirds of the world's internationally traded crude oil supplies.

Slippery oil rally: on the oil-price rise


NOVEMBER 11, 2017 00:15 IST
UPDATED: NOVEMBER 11, 2017 01:16 IST

American shale producers are likely to contain any sustained rally in global oil
prices

T he price of oil has risen sharply in recent weeks leading to renewed forecasts of a
sustained bull market in the price of the commodity. The price of Brent crude, which
breached the $60 mark late last month, is currently trading at about $64 per barrel, a two-
year high. In fact, in the last one month alone, oil has gained well over 12%. The oil rally has
been even sharper from its June low of a little below $45, from where the commodity has
rallied more than 40% to reach its current price, with some experts saying the ongoing rally
could portend even higher prices in the coming months. The upsurge this week has been
driven primarily by political uncertainty in Saudi Arabia, the world’s second largest
producer of oil, and the tightening of supply by the Organisation of the Petroleum
Exporting Countries, which is expected to extend its supply-cut agreement beyond March.
Whether the price gains would sustain and continue over an extended period of time still
remains a big question for various reasons, however. Shale oil production is the biggest
among them. In the past, North American producers of shale brought a multi-year bull
market in oil to an abrupt end. Since then, OPEC has struggled to maintain control over oil
prices except for brief spells. The American shale industry has been let free to increase
production in response to higher prices, thus imposing a cap on the price of oil. There are
no signs yet of a structural change in the oil market to suggest that it could be any different
this time.

Shale producers have continued to pump more oil into the market as crude prices have
crossed the $50 mark. According to the Energy Information Administration, a body under
the U.S. Department of Energy, U.S. shale production is likely to increase by about 81,000
barrels per day in the current month. In addition, in its World Oil Outlook report released
this week, OPEC said it expects shale output to grow much faster than it had previously
estimated. The cartel’s new estimate is, in fact, more than 50% higher than its projection
last year. It also noted that shale output from North America has increased by about 25%
over the past one year. All this suggests that shale is likely to remain OPEC’s nemesis for a
long time. India has derived huge benefits from lower oil prices since 2014, with the
government’s fiscal management and inflation-targeting being rendered a lot easier. There
is bound to be some economic unease now as the price of oil fluctuates in what looks likely
to be a range-bound market. A repeat of the huge damage caused by the last oil bull
market, however, seems unlikely. Nonetheless, policymakers in Delhi will surely take a
cautious stance given the extensive impact that oil prices have on the Indian economy.

Nemesis - a long standing rival or arch enemy.


Dubai Crude
Dubai Crude is a medium sour crude oil extracted from Dubai. Dubai Crude is used as a price benchmark or oil marker because it is
one of only a few Persian Gulf crude oils available immediately. There are two other main oil markers: Brent Crude and West Texas
Intermediate.

Dubai Crude is generally used for pricing Persian Gulf crude oil exports to Asia. The Dubai benchmark is also known as Fateh, used
in the United Arab Emirates.[1] Forward trade of Dubai Crude is limited to one or two months.

Dubai Crude is a medium oil. It has a gravity of 31°API (specific gravity of 0.871) and a sulfur content of 2%/weight[2]

See also
DME Oman Crude Oil Futures Contract
List of crude oil products
Petroeuro

References
1. "Crude Benchmark Analysis"(https://web.archive.org/web/20060322115911/https://www .platts.com/Oil/Resources/N
ews%20Features/crudeanalysis/index.xml). Archived from the original (http://platts.com/Oil/Resources/News%20Fea
tures/crudeanalysis/index.xml)on March 22, 2006. Retrieved 2006-10-08.
2. Supplement 3 (1997), Oil Trading Manual, Long, D. (Ed.), Cambridge: Woodhead Publishing Limited.

Retrieved from "https://en.wikipedia.org/w/index.php?title=Dubai_Crude&oldid=738068189


"

This page was last edited on 6 September 2016, at 18:43.

Text is available under theCreative Commons Attribution-ShareAlike License ; additional terms may apply. By using this
site, you agree to the Terms of Use and Privacy Policy. Wikipedia® is a registered trademark of theWikimedia
Foundation, Inc., a non-profit organization.
Urals oil
Urals oil is a reference oil brand used as a basis for pricing of the Russian export oil mixture. It is a mix of heavy sour oil of Urals
and the Volga region with light oil of Western Siberia. Other reference oils areBrent, West Texas Intermediate and Dubai.

Urals brand oil is supplied through the Baku-Novorossiysk pipeline system and the Druzhba pipeline. Urals oil futures trade on
Russian Trading System stock exchange.[1] There was also an effort to trade it on NYMEX under the name of REBCO (Russian
Export Blend Crude Oil);[2] however, not a single trade was made.

References
1. "Urals oil prices" (http://www.topoilnews.com/price-urals-brent/). Top Oil News. Retrieved 2009-02-12.
2. "New Oil Price Forecast"(http://www.skrin.com/analytics/reviews/documents/oil%20price%20forecast%20221106.pd
f?3ff5f04ec3c54fdeb32d568eecbab29a)(PDF). Rye, Man and Gor Securities. 2006. Retrieved 2009-02-12.

Retrieved from "https://en.wikipedia.org/w/index.php?title=Urals_oil&oldid=772349590


"

This page was last edited on 26 March 2017, at 19:44.

Text is available under theCreative Commons Attribution-ShareAlike License ; additional terms may apply. By using this
site, you agree to the Terms of Use and Privacy Policy. Wikipedia® is a registered trademark of theWikimedia
Foundation, Inc., a non-profit organization.
West Texas Intermediate
West Texas Intermediate (WTI), also known as
Texas light sweet, is a grade of crude oil used as
a benchmark in oil pricing. This grade is
described as light because of its relatively low
density, and sweet because of its low sulfur
content. It is the underlying commodity of New
York Mercantile Exchange's oil futures contracts.

The price of WTI is often referenced in news Spot price of West Texas Intermediate in relation to the price of
reports on oil prices, alongside the price of Brent Brent Crude
crude from the North Sea. Other important oil
markers include the Dubai Crude, Oman Crude,
Urals oil and the OPEC Reference Basket. WTI is lighter and sweeter than Brent, and considerably lighter and sweeter than Dubai or
Oman.[1]

Contents
1 Characteristics
2 West Texas Intermediate price settlement point
3 Pricing[5]
3.1 Pricing anomalies
4 See also
5 References
6 External links

Characteristics
WTI is a light crude oil, with an API gravity of around 39.6 and specific gravity of about 0.827, which is lighter than Brent crude. It
contains about 0.24% sulfur thus is rated as a sweet crude oil (having less than 0.5% sulfur), sweeter than Brent which has 0.37%
sulfur. WTI is refined mostly in the Midwest andGulf Coast regions in the United States.

West Texas Intermediate price settlement point


Cushing, Oklahoma is a major trading hub for crude oil and has been the delivery point for crude contracts and therefore the price
settlement point for West Texas Intermediate on the New York Mercantile Exchange for over three decades.[2] The town of Cushing,
Oklahoma is a small, remote place with only 7,826 inhabitants (according to the 2010 Census).[3] However, it is the site of the
Cushing Oil Field, which was discovered in 1912, and dominated U.S. oil production for several years. The area became a "vital
transshipment point with many intersecting pipelines, storage facilities and easy access to refiners and suppliers," infrastructure
which remained after the Cushing field had declined in importance. Crude oil flows "inbound to Cushing from all directions and
outbound through dozens of pipelines".[4] It is in Payne County, Oklahoma, United States.

Pricing[5]
OPEC Reference Basket
The OPEC Reference Basket (ORB), also referred to as the OPEC Basket, is a weighted average of prices for petroleum blends
produced by OPEC members. It is used as an important benchmark for crude oil prices. OPEC has often attempted to keep the price
of the OPEC Basket between upper and lower limits, by increasing and decreasing production. This makes the measure important for
market analysts. The OPEC Basket, including a mix of light and heavy crude oil products, is heavier than both Brent crude oil, and
West Texas Intermediate crude oil.

[1]
Since January 1, 2017, the OPEC reference basket consists of a weighted average of the following crudes:

Saharan Blend (from Algeria)


Girassol (from Angola)
Oriente (from Ecuador)
Rabi Light (from Gabon)
Iran Heavy (from Iran)
Basra Light (from Iraq)
Kuwait Export (from Kuwait)
Es Sider (from Libya)
Bonny Light (from Nigeria)
Qatar Marine (from Qatar)
Arab Light (from Saudi Arabia)
Murban (from UAE)
Merey (from Venezuela)

Old line-up
Prior to June 16, 2005, the OPEC Basket did not include petroleum blends from all OPEC members. The earlier basket consisted of
seven crudes:[2][3]

Saharan Blend (from Algeria)


Minas (from Indonesia)
Isthmus (from Mexico, a non-OPEC country)
Bonny Light (from Nigeria)
Arab Light (from Saudi Arabia)
Fateh (from Dubai, UAE)
Tia Juana Light (from Venezuela)

References
1. "OPEC Basket Price" (http://www.opec.org/opec_web/en/data_graphs/40.htm). OPEC. Retrieved January 6, 2017.
2. "Composition of the new OPEC Reference Basket"(http://www.opec.org/opec_web/en/press_room/1026.htm) (Press
release). OPEC. June 15, 2005. Retrieved June 29, 2016.
3. "Pricing Differences Among Various Types of Crude Oil" (https://web.archive.org/web/20101113164128/http://tonto.ei
a.doe.gov/ask/crude_types1.html). EIA. July 2006. Archived from the original on November 13, 2010.

Retrieved from "https://en.wikipedia.org/w/index.php?title=OPEC_Reference_Basket&oldid=758704600


"

This page was last edited on 7 January 2017, at 01:36.


Google+

Call (303) 309-1185

Home About Us » Our Services » News & Publications » Our Team Blog Contact Us

What’s in a Name: The Difference Between “WTI” and “Brent” Newsletter Signup

January 14, 2015 by Dan Eberhart


Brent, crude oil pricing benchmarks, West Texas Intermediate, WTI, WTI Brent spread 3 Comments Like reading our blog? Subscribe to our
newsletter here.

Oil prices haven’t just declined in recent months – they’ve plummeted. It Name (required)
doesn’t matter what news station you watch or what newspaper you read,
someone is talking about it.

Email address (required)


Most of the time, the media outlets reporting on oil prices don’t do a very
good job of explaining the current situation. They simply state where the
price currently stands in terms of a dollar amount per barrel and move on
to their next order of business. This can be very misleading to the
average audience because it insinuates that there is one singular Subscribe
benchmark for oil that is used throughout the globe. In reality, however,
liquid petroleum is priced differently depending on its region of origin, and
knowing why is important to understanding how oil markets across the
world operate as a whole.

About the Author


Crude is King

When people talk about the price of oil, they’re talking about crude.

Crude is defined as an unrefined petroleum product composed of hydrocarbon deposits – or, in simple terms, oil in its
most raw and natural form.

Contrary to popular belief, the crude that’s extracted from one part of the world isn’t the same as the crude extracted
from another. For instance, what comes out of the ground in Texas and North Dakota isn’t the same as what comes out
of the ground in the Middle East or the North Sea. Though they are all classified as liquid petroleum, each is slightly
different in its chemical makeup, making it more or less valuable than the others.

Similar to beef that you buy in the supermarket, the price of crude varies depending on a number of different factors, one
of which is quality. In the case of petroleum, quality refers to how easily the oil can be turned into a “refined” product
such as gasoline, diesel, or jet fuel, among others.

Sulfur content of crude oil is the most important indicator of quality. The lower the content, the “sweeter” the oil and the
easier it is to refine. Crude with high sulfur content is sometimes referred to as “sour”, and while it is still valuable, it
requires more work to remove the impurities and therefore is generally traded at a lower premium.

Dan Eberhart has been the Chief


For a detailed discussion, read our Crude Oil Refinery Primer “Light on the Top, Heavy on the Bottom.”
Executive Officer of Canary since 2009.
Under his leadership, Canary has grown
API gravity, which compares the crude’s density to water, is also an important indicator of quality. The higher the API
into one of the largest privately held
gravity, the lighter the oil. Lighter oil is easier to process than heavier oil and consequently fetches a typically higher
oilfield services companies in the U.S.
price on oil markets.

Prior to his role at Canary, Eberhart was


The Two Most Widely Used Crude Pricing Benchmarks: Brent and WTI
Vice President of Acquisitions for
Greene’s Energy, LLC in Houston, TX.
Although there are dozens of different pricing benchmarks for crude oil throughout the world, the two most widely used
are Brent and West Texas Intermediate (WTI).
Eberhart graduated cum laude from
Vanderbilt University with degrees in
Brent crude originates from four oilfields in the North Sea (Brent, Forties, Oseberg, and Ekofisk). The oil extracted from Economics and Political Science, and
these fields is typically light and sweet, making it very easy to refine into other products. Roughly two-thirds of all crude earned a juris doctorate and certificate in
contracts around the world use Brent as a pricing benchmark, which makes it the most widely used indicator of oil on the European Legal Studies from Tulane
planet. University.
A strong believer in the local community,
Eberhart has helped Canary donate over
$500,000 to the communities in which
the company operates.

Get a PDF of this Post

Download PDF

WTI is the benchmark for all crude oil that originates in the US and makes its way by pipeline to the hub in Cushing,
Oklahoma. Like Brent, most of the oil extracted in the US – especially in Texas and North Dakota – is light and sweet,
making it ideal for refinement.

In terms of quality, WTI and Brent crude are very similar. For many years the difference in price between Brent and WTI
was minimal – but since 2011, the two benchmarks have diverged. WTI crude is now cheaper than Brent, and the
reason why can be summed up in three words: AMERICAN… SHALE…. REVOLUTION.

Supply and Demand

The biggest price driver of any commodity is supply and demand. Quite simply, when supplies increase or demand
decreases, prices go down.

The primary reason for the divergence of WTI and Brent over the past four years has been the recent surge in US oil
production. Shale oil has drastically changed America’s energy landscape for the better but the transformation has been
so rapid that the downstream and midstream sectors haven’t been able to keep up.
Cushing, Oklahoma, is one of the world’s biggest oil hubs, but its outdated pipeline infrastructure simply wasn’t built to
handle the volume of oil that is currently being produced in the US. Before the American Shale Revolution, oil could be
sent from Oklahoma to refineries in the north. But in recent years, those facilities have been overwhelmed by production
from Canada and North Dakota. Now, almost all of the oil that leaves Cushing heads south to the Gulf Coast – and
without enough pipeline capacity to get it there, a supply glut has built up and the price of WTI has gone down.

Refining facilities on the Gulf Coast haven’t helped matters either. Until the production surge of oil from North American
shale basins, there was no need for domestic refineries to be set up to process it. Most of the oil that was flowing to the
Gulf Coast before 2008 was a heavier, more sour blend of crude that was imported from Canada and South America. So
when lighter, sweeter grades started coming in from Texas, refineries weren’t fully prepared to process it. This amplified
the supply glut, ultimately dragging down the price of US-produced oil even further.
glut - an excessively abundant supply of something
Since 2009, downstream infrastructure in the US has adapted in order to better handle domestically-produced crude.
Unfortunately, the rate at which new plants have come online and old plants have been retrofitted has severely lagged
behind rising production levels. As a result, the price gap between WTI and Brent has remained, though it has fluctuated
somewhat.

What the Brent/WTI Spread Has Done Lately

In recent months, crude prices have been on a downward spiral. Why? For one: the global oversupply of oil – or at least
the perception that a global oversupply will exist in the future, most notably in China and India (two of the world’s largest
consumers). For another: with OPEC’s decision in November not to curtail production.

As of December 30th, Brent was at $57.88 per barrel and WTI was at $53.61 – their lowest levels since May 2009.

Although the ~$4 spread between the two benchmarks may not seem like all that much, it is rather significant
considering how low prices currently are. This is especially true for US oil producers, who are prohibited from selling
their crude on international markets. The price they receive is directly tied to WTI, so they essentially have to sell their oil
to domestic refineries at a discount, which negatively impacts their profitability.

It’s very hard to predict what the gap between Brent and WTI will do in the future, but most analysts anticipate that the
price discrepancy will remain until the US supply glut is diminished.

Exactly how that will be achieved is something that is still up for debate.

Social Share

3 Comments

Eric January 14, 2015 at 4:56 pm Reply


EDITORIAL

Hit refresh: on the slashed GST rates


NOVEMBER 12, 2017 21:52 IST
UPDATED: NOVEMBER 12, 2017 23:26 IST

The GST Council rationalises the tax regime further, but simplicity is still not within
grasp

T he script was altered for the second time in two months but with far greater impact.
Soon after Prime Minister Narendra Modi promised far-reaching changes to simplify
the goods and services tax regime, especially for small businesses and consumers, the GST
Council delivered some relief measures on Friday. At its meeting in Guwahati, the Council
lowered the tax rates on over 200 products, compared to 27 items in its previous meeting and
about 100 tweaks since GST rates were finalised in May. Over 1,200 products and services had
been placed in five tax brackets — 0%, 5%, 12%, 18% and 28%. That those rates no longer hold
for about a quarter of those items, and the highest tax bracket is left with just 50 products,
compared to more than 250 in July, is a tacit admission that the initial rates were worked out
in a hurry with maximising revenue being the prime consideration. Similarly, the ambit of the
Composition Scheme for small businesses has been expanded twice — from an initial turnover
threshold of ₹75 lakh per year to ₹1 crore (in October), and now further to ₹1.5 crore. This
would require a change in the GST laws, so it may take some time to kick in. There should be
no doubt that all the course corrections currently under way to ease the transition to GST are
more than welcome — and the government will be hoping these ‘people-friendly’ changes will
not only spur consumption but also boost compliance.
But the transmission of lower rates may take time as it could be two-three months before
existing inventory in the market is replaced with freshly priced products. With returns for the
first month of the tax yet to be filed by all registered taxpayers and less than three months to
go till the presentation of the Union Budget, Finance Ministry mandarins face a unique
challenge on revenue visibility. In the interest of the exchequer and the taxpayer, whatever
other improvements the GST needs must be implemented at the earliest — whether they are
stuck because of a lack of consensus (letting inter-State suppliers avail of the Composition
Scheme), poor implementation (the GST Network) or simply the lack of bandwidth to think
through. The Opposition has criticised the latest reboot of the GST as a Gujarat campaign
effect. While that rang truer in October when rates for popular snacks in the State were
lowered, many decisions remain curious. Cement is taxed at 28%, but granite and marble have
been lowered to the 18% bracket. Instead of a tactfully designed One Nation, One Tax system,
the GST should not degenerate into a tool to please constituencies. The Council must institute
a transparent system with an explicit rationale for any rate changes in the future. Only then
can business and retail find predictability in the GST, rather than be wistful for a time when
indirect tax rates were reviewed once a year in the annual Budget instead of every month.
EDITORIAL

Justice in tumult: on the turmoil in Supreme Court


NOVEMBER 13, 2017 00:02 IST
UPDATED: NOVEMBER 12, 2017 23:19 IST

The turmoil will end only with a full, fair probe into the alleged plot to influence judges

T here is absolutely no doubt that the Chief Justice of India is the master of the roster. So, it is
impossible to dispute the legal reasoning behind Chief Justice Dipak Misra’s ruling that no
one but he can decide the composition of Benches and allocation of judicial work in the Supreme
Court. However, the circumstances in which he had to assert this authority have the potential to
greatly diminish the court’s lustre. The scenes witnessed in the court amidst troubling allegations
of possible judicial corruption are worrisome for their capacity to undermine the high esteem
that the judiciary enjoys. Chief Justice Misra chose to stick to the letter of the law, but there
remain troublesome questions about potential conflict of interest in his decision to overrule
Justice J. Chelameswar’s extremely unusual order that delineated the composition of a
Constitution Bench to hear a writ petition seeking a fair probe into the corruption allegations. It
is a fact that in the Prasad Education Trust case, the petitions alleging that some individuals,
including a retired Orissa High Court judge, were plotting to influence the Supreme Court, had
been heard by a Bench headed by Chief Justice Misra. However, it would be perverse and
irresponsible to attribute corrupt motives without compelling evidence. At the same time, by
heading the Bench himself, the Chief Justice may have contributed to the perception that he will
preside over a hearing in his own cause, rather than leaving it to another set of judges to reiterate
the legal position on who has the sole say in deciding the roster.
Puisne - a judge of a superior court inferior in rank to chief justices.
ALSO READ
Justice Chelameswar, the senior-most puisne judge, may have passed his
order based on the petitioner’s claim that there would be a conflict of
interest were the Chief Justice to choose the Bench. But in doing so, he chose
to ignore the principle that allocation of judicial work is the preserve of the
Prashant
Bhushan storms
Chief Justice. Both justices may have found themselves in a situation in
out of court which law and strict propriety do not converge. As for the lawyer-activists
after spat with
CJI involved, it is one thing to flag corruption, another to foster the impression
that they want to choose the judges who will hear them. The only way to end
the current turmoil in the judicial and legal fraternity is to ensure that the Central Bureau of
Investigation holds an impartial probe in the case registered by it. The involvement of serving
judges may only be a remote possibility, but it is vital to find out whether the suspected
middlemen had any access to them. An unfortunate fallout of the controversy is the perception of
a rift among the country’s top judges. To some, the charges may represent an attempt to
undermine the judiciary. These perceptions should not result in the sidestepping of the real issue
raised by the CBI’s FIR: the grim possibility of the judiciary being susceptible to corruption.
Tumult and turmoil should not overshadow this substantive issue.

Tumult - a loud, confused noise, especially one caused by a large mass of people.
enfants terribles - a child whose inopportune remarks cause embarrassment

EDITORIAL

Cabinet of chaos: the challenges facing Theresa May


NOVEMBER 14, 2017 00:02 IST
UPDATED: NOVEMBER 13, 2017 23:41 IST

The British PM is struggling to control her government and the Brexit process

B ritain seems to have lost its way. As the contagion of chaos spreads across government and
Brexit negotiations across the Channel, Prime Minister Theresa May’s hold on power may
be weakening. Over the weekend, The Sunday Times reported that 40 MPs, just eight short of the
number required to force a vote on the Conservative party leadership, are ready to sign a letter of
no confidence. Additionally, a letter from Foreign Secretary Boris Johnson and Environment
Secretary Michael Gove to Ms. May, attempting to dictate Brexit strategy to her, was leaked to the
press. The demands in the letter and the language used have created a stir, summing up the
leadership crisis in the cabinet. Last week, International Development Secretary Priti Patel
resigned over unofficial meetings in Israel, and days earlier, Ms. May’s deputy, Damian Green,
started facing an inquiry into allegations of inappropriate behaviour. On November 1, Defence
Secretary Michael Fallon resigned over brewing sexual harassment accusations, and there have
been calls for Mr. Johnson, enfant terrible of Ms. May’s Cabinet, to resign over comments that
may have exposed a British charity worker currently in an Iranian prison. Ms. May’s defensiveness
draws from her tenuous hold on her position — caused largely by her decision to call a snap
election in June, and destroying her wafer-thin majority in Parliament. She lacks the authority to
bring order to her Cabinet and focus on the mammoth task at hand: ensuring a minimally
disruptive exit form the European Union.

ALSO READ
Ms. May’s conciliatory speech in Florence in September failed to be the
Pragmatic in
London: on turning point in the Brexit negotiations that she hoped it would be. Even if
Brexit
the EU’s chief negotiator, Michel Barnier, adopted a softer position, France
and Germany have since made it clear that Britain will have to come up with
more money and details prior to any discussion on transition arrangements
and trade deals. The EU minus Britain will begin internal consultations on
transition arrangements and trade, London’s priority subjects, only after
“sufficient progress” is made in three other areas: citizen rights, the divorce
bill and agreement on how to treat the border between Northern Ireland and the Republic of
Ireland. The European Council will meet mid-December to decide if sufficient progress has been
made to start the next phase of talks. Last week, Mr. Barnier reiterated that Britain would need to
up its financial offer by late November to stick to this timeline. This is a challenge given that the
U.K.’s autumn budget will be presented on November 22. Consequently, trade and transition talks
may get pushed into 2018, exacerbating an already precarious situation for businesses and banks.
Mr. Barnier also revealed that the EU is drawing up plans for the eventuality of Britain crashing
out of the EU. It is in London’s interest to keep negotiations on track to avoid this, but it will need
the May government to be more cohesive than it is at present.
EDITORIAL

Eastern promise
NOVEMBER 14, 2017 00:02 IST
UPDATED: NOVEMBER 14, 2017 00:26 IST

India must balance diverse alliances as it strengthens its East Asia pivot

P rime Minister Narendra Modi’s visit to the Philippines to attend the ASEAN-India
summit, the East Asia Summit and the Regional Comprehensive Economic
Partnership summit has put India centre-stage in the Asian region now referred to as
“Indo-Pacific”. Equally, it puts the “Indo-Pacific” and ties with the U.S. centre-stage in
India’s Act East policy, in all three spheres: political, strategic and economic. Mr. Modi’s
arrival in Manila was preceded by the first meeting of the India-U.S.-Japan-Australia
quadrilateral, a grouping first mooted in 2006 by Japanese Prime Minister Shinzo Abe. It
ended with statements on cooperation for a “free, open, prosperous and inclusive Indo-
Pacific region”, a direct signal that it will counter China’s actions in the South China Sea if
necessary. Next, Mr. Modi’s meeting with U.S. President Donald Trump saw a similar
emphasis on cooperating in the Indo-Pacific, a term now widely adopted by the U.S. The
‘Quad’ doesn’t just pertain to maritime surveillance, it also aims at enhancing connectivity
in accordance with “the rule of law” and “prudent financing” in the Indo-Pacific together, a
reference to American plans to build an “alternative financing model” to China’s Belt and
Road Initiative. Finally, Mr. Modi’s speech to ASEAN vowed to bring India’s economic and
business ties with the region up to the level of their “exceptionally good political and
people-to-people relations”. This sets the stage for closer engagement ahead of the 25th
year Commemorative Summit to be held in Delhi in January 2018, with ASEAN leaders also
expected to attend Republic Day festivities.
The clarity in India’s purpose in East Asia at this juncture is important, but the next steps
are equally vital. To begin with, despite a government statement to the contrary, it is
impossible to avoid the conclusion that the Quad, also called a “coalition of democracies”
of the Indo-Pacific, is a front aimed at countering China’s influence. As the only member of
the proposed coalition that is also part of another security arrangement involving China
and Russia, the Shanghai Cooperation Organisation, India’s ability to balance its interests
will be tested. Finally, while there will be much to navigate on the political front, Mr. Modi
would be keen to keep a sharp focus on the economic tailwinds during his engagements in
Manila. The 10 ASEAN countries account for about 11% of India’s global trade. For the past
few years India has joined the ASEAN “plus six”, including China, Japan, South Korea,
Australia and New Zealand, to discuss the RCEP free trade agreement. Talks have often run
into rough weather over India’s stand on visas and services access, while also holding out
against free trade that could give China an unfair edge in goods trade. Mr. Modi’s work is
cut out as he clarifies India’s pivot in east Asia. see Annex - 1
Annex - 1
Regional Comprehensive Economic Partnership (RCEP) –
Will it counter TPP?
clearias.com /rcep/
Clear IAS 10/7/2017
Team

RCEP is considered as an alternative to Trans-Pacific Partnership (TPP).

Regional Comprehensive Economic Partnership (RCEP) is a proposed free trade agreement (FTA) between the
countries of Association of South East Asian Nations (ASEAN) namely Brunei, Cambodia, Indonesia, Laos,
Malaysia, Myanmar, the Philippines, Singapore, Thailand, Vietnam and the six states with which ASEAN has free
trade agreements (Australia, China, India, Japan, South Korea and New Zealand).

RCEP is considered as an alternative to the other important multilateral treaty named Trans-Pacific Partnership
(TPP). The TPP agreement excludes two of the important Asian powers – China and India.

The Potential of RCEP


RCEP member states accounted for a population of 3.4 billion people and a total Gross Domestic Product
of $49.5 trillion.
It is seen that the total GDP in RCEP could grow over to $100 billion by 2050 if the growth of the countries
like China, India and India continues to be high.
On Jan 23, 2017, US President Trump signed a memorandum stating the withdrawal of the US from the
TPP, a move which has turned the focus of the world towards RCEP.
RCEP will cover trade in goods, trade in services, investment, economic, technical cooperation,
intellectual property, dispute settlement and other issues.

Importance of RCEP for India


The RCEP provides an opportunity for the success of India’s Act East policy and will also influence the
economic stature of India among the other South Asian countries.
Also in comparison with the TPP & TTIP groups of countries, India’s trade with the RCEP group of
countries as a percentage of its total trade has increased over the past decade. This shows the
importance of RCEP to India.

Also read: Simultaneous Elections: Will this be good for India?

1/5
The three immediate benefits of RCEP to India are::

2. RCEP agreement would complement India’s existing free trade agreements with ASEAN nations and
some of its member countries. The goal of greater economic integration with the countries of South East
Asia and East Asia can be achieved through RCEP. India will have access to vast regional markets of
these countries thereby helping its economy.
3. RCEP will facilitate India’s Integration into regional production networks harmonizing trade-related rules.
India is not a party to two other important regional economic blocs namely Asia- Pacific Economic
Cooperation and Trans-Pacific partnership and thus RCEP would play an important role in strengthening
its trade ties with these countries.
4. India enjoys a comparative advantage in areas such as ICT, IT-enabled services, healthcare, and
education services. RCEP would help in attracting greater FDI into these areas.

Importance of RCEP for China


Regional Comprehensive Economic Partnership is the key point of accelerating the implementation of the FTA
strategy in China.

The members of the RCEP are all important trade partners ofChina.
The establishment of the RCEP is in the strategic interest of China. It is the largest FTA China has ever
negotiated on.
China is fighting hard for establishing a new set of economic and trade rules outside the influence of USA
and RCEP will help in this endeavour.
This would help in the domestic economic development further strengthening China’s position in the
global arena.
China was excluded from the other important agreement TPP and thus RCEP provides an opportunity for
better economic and peaceful relations with the neighbouring countries necessary for China’s rise.

Also read: Elections to the Rajya Sabha: Know the procedure of electing a candidate to the upper house

New Delhi’s Challenges

2/5
For New Delhi, four challenges lie ahead.

1. Tariff barriers which have been a matter of discontent in bilateral FTAs, particularly in the case of ASEAN-
India FTA will be central to the Regional Comprehensive Economic Partnership negotiations.
2. Non-trade issues such as environment and labour are likely to be a cause of concern. Some of the
countries are stressing on stricter labour and environmental protection steps which India feels go far
beyond the World Trade Organisation’s Agreement on Trade-Related Aspects of Intellectual Property
Rights (TRIPS)
3. India must take steps to strengthen its medium small and micro enterprises (MSME) sector so as to make
it withstand the free flow of trade. Higher investments in R&D and achieving international standards in
terms of delivery are needed for this purpose.
4. India must work tirelessly on capacity building of its domestic industries.
5. Also, the negotiations services are not moving on par with that of trade in goods. India wants liberalised
service trade so as to leverage its pool of skilled workforce providing them easier movement across the
borders.

Why is India worried about the Regional Comprehensive Economic Partnership?

3/5
Agreeing to eliminate tariffs altogether is a move that will mainly help China. India is also worried that China
would dump its low-cost steel and other products thereby causing a serious harm to the domestic industries.

Sources say India could put forward a two-tier proposal on foods that will treat China differently from the
remaining RCEP countries.
This proposal on China will include a larger negative list (goods that will be protected from tariff cuts) and
longer time frame for reducing/eliminating tariffs on the remaining goods.

Also read: Arbitration in India - Mechanism and Challenges

However, India is under pressure to offer similar tariff cuts to all the member states and proposals are being
opposed.

Contentions of Civil Society Organizations (CSOs)


Medecins Sans Frontieres (MSF) along with other CSOs are pushing for the removal of harmful
intellectual property provisions that could potentially increase drug costs by creating new monopolies and
delaying the entry of affordable generics in the market. see
Two of the most worrying proposals in the trade deal is the demand for Data exclusivity and patent term Annex -
extensions, both Intellectual Property obligations that least developed countries oppose. 1A & 1B
India is considered as the Pharmacy of the World due to its provision of generic drugs to the countries all
over and thus agreeing to such proposals in Regional Comprehensive Economic Partnership would
severely undermine India’s position among the least developed countries.

4/5
Conclusion

India needs to maintain a balance between the opening of its economy and protecting its domestic
manufacturing industry. In the current scenario of growing protectionism, Regional Comprehensive Economic
Partnership provides an opportunity for the countries to prosper by increasing trade, creating jobs and other
economic opportunities and India should make use of such an agreement.

India, as it has done in the latest round of negotiations need to step its effort for negotiations on liberalizing
services and should also convince the member states to take a humanitarian view regarding the provision of
generic medicines. A win-win situation in which the interests of all the parties are taken into concern is what is
required to make Regional Comprehensive Economic Partnership successful.

Article by: Pullela Ujwala

© 2017 ClearIAS.com. All rights reserved.

© 2017 ClearIAS.com. All rights reserved.

5/5
Annex - 1 A

Data Exclusivity

What is data exclusivity?

It refers to protection of clinical trial data required to be submitted to a


regulatory agency to prove safety and efficacy of a new drug, and prevention
of generic drug manufacturers from relying on this data in their own
applications.
Represents a compromise between the innovator drug companies and
generic drug companies, where innovator companies get a period of
exclusivity.
This period allows drug companies to recoup the investmenton clinical trials
Once that period is over, a generic company can use the data for its own
drug approval.
Generic company cannot apply to use the data of the drug in that exclusive
period even if the patent is invalidated.

How is the data protected?

Data exclusivity protects data generated in the course of clinical trials of a


drug.
Before a drug can be marketed, the approval regulations require drugs to
undergo detailed clinical testing to ensure it is safe to use.
The cost of undertaking tests is considerable, involves human subjects and is,
therefore, an arduous exercise.
Most governments award a drug company that has undertaken clinical trials
with a period of “exclusivity” which ranges anywhere from five to eight
years.

Why there is an issue on this?

Centre considering the proposal to provide a longer period of data exclusivity


to ‘new’ drugs from 4 years to 10 years.
The move comes at the behest of the United States Trade Representative
(USTR), which is the arm of the US government tasked with the role of
enforcing US intellectual property in markets around the world.
Indian Pharmaceutical Alliance is against this as it will impact the availability
of low cost generic medicines in India.

What provisions does Indian Law have?

The Drugs and Cosmetics Act 1940 provides for data exclusivity for a “new
drug” under section 122E for a total period of 4 years from the date of
approval.
A “new drug” is not defined as a patented drug but simply a drug which has
not been used in the country to any significant extent.
The regulations require an applicant for a new drug to engage in extensive
testing and clinical trials.
But, the requirement may be waived for purposes of “public interest” or, if
the new drug has been approved and marketed for several years in other
countries.
Such a requirement is a standard norm to avoid duplication of trials in
different jurisdictions which can result in increasing the cost and delaying
the introduction of the drug in the market.

Why the recent proposal risky?

Even when a patent is invalidated, the generic drug company will be


prevented from entering the market until the data exclusivity period of 10
years is over.
The financial costs prevent the generic companies to conduct their own trials
also repeating an exercise is waste of time, resource & energy.
Increase in the data exclusivity period will affect the Indian patients
detrimentally.

Is there any compulsion to increase the data exclusivity period?

The WTO TRIPS Agreement under Article 39 does not subject India or any
WTO member to a fixed term of protection and hence it is unnecessary for
India to agree to such an increased level of exclusivity commitment.
Even under the Trans-Pacific Partnership, the proposal for extension of data
exclusivity was a subject of severe criticism.

Why is US supporting increase of data exclusivity period?

US pharmaceutical companies have been trying for years to slow the


introduction of generics by a reversal of section 3(d) of the Indian Patent Act,
without much success.
The UN report on Access to Medication has highlighted the poor quality of
high value pharmaceutical patents and raised awareness over the
importance of providing access to generic drugs.
Increasing the period of data exclusivity is the absolute best and indirect
way of delaying generic competition.
Data exclusivity, therefore has become the next big tool for US
pharmaceutical industry to indirectly seek market exclusivity.

What should be the way for India?

It is unfortunate that India agreed to extend data exclusivity to 10 years.


Indian government has to reconsider its position and evaluate where it
stands on making drugs affordable for its ever growing population.

Category: Mains | GS – III| Economy

Source: Business Line


Annex - 1B
India: Do we need Patent Term Extension and Non-Patent Exclusivities for
Pharmaceuticals?

January 11, 2017 - 6:41 Am (Http://Www.Khuranaandkhurana.Com/2017/01/) Categories: India, News & Updates, Patents 0 Comments
(Http://Www.Khuranaandkhurana.Com/2017/01/11/India-Do-We-Need-Patent-Term-Extension-And-Non-Patent-Exclusivities-For-Pharmaceuticals/)

India, though in a phase of rapid economic development, still has the bane of poverty. In this country, around 22% of the
population is Below the Poverty Line [1], and hence most of the nation’s policies are oriented towards the poor. India’s IP Policy is
no different, as the IP legislature in India is mostly oriented towards giving the general public an easy and inexpensive access to
medicines. Indian IP policy drafters have used every flexibility in the Agreement on the Trade-Related Aspects of Intellectual
Property Rights (TRIPS), to which India is a signatory, for this purpose.

The curious case of drug development

The process of development of the drugs to treat the diseases and ailments is pretty much painstaking. A drug regulatory
authority, (e.g. The US Food and Drug Administration-US FDA; Central Drugs Standard Control Organization-CDSCO in India)
monitors and governs the testing of the New Chemical Entities (NCEs) through pre-clinical and clinical trials to prove their safety
and efficacy to treat an ailment. Several NCEs fail at some or the other stage, rendering all the money and efforts in vain. The
amount of money invested in each NCE is of the order of billions of dollars. [2] The time period it takes for the development of the
NCEs as approved ‘Drugs’ typically ranges from 10-15 years [2]. The chances of a candidate making it through this whole of the
process, to the desk of the pharmacy, are merely 2% [2]. So, in this precarious situation, the 20 years of patent protection granted
to the drug products is not sufficient to recover the huge investment made in the R&D of the product. So, the pharma companies
usually demand the extension of the protection of their monopoly over the drug product. This Patent Term Extension (PTE) is
granted by the Patent Office of the region or country.

Now, these clinical trials generate data regarding the therapeutic activity and safety of the drug. So, if a generic player wants to
launch the same drug, it will need this data to prove that its generic version of the drug is ‘equivalent’ to the innovator’s product.
Since the innovator companies invest huge amounts of time, money and efforts into generating this data, they demand exclusivity
of this data. This Clinical Trial Data Exclusivity is under the discretion of the drug regulatory authority and regardless of the
existence of a valid patent on the subject matter. If granted, it gives an additional layer of protection to the innovator drug
product.

In the following paragraphs, we will discuss the Patent Term Extension and Clinical Trial Data Exclusivity provisions present in the
US and European, legislature, in comparison with the Indian scenario. Several other countries also provide these provisions, but
we will limit our discussion to these three jurisdictions.

Patent Term Extension

In the US, according to the Drug Price Competition and Patent Term Restoration Act, or the Hatch-Waxman Act, 1984 [3], the
patent term can be extended up to 5 years, however, the total patent term (including extension) should not be more than 14 years
after the date of approval of the product by FDA. This period may be extended by a period of another six months of Pediatric
Exclusivity.

The European Patent Office similarly provides an extension of protection in this regards, by giving the Supplementary Protection
Certificate (SPC). [4] The SPC allows extending the Patent term by 5 years. however, the total patent term (including extension)
should not be more than 15 years after the date of approval of the product by the European Medicines Agency. Additional 6
months’ protection is given to medicinal preparation to treat children (Pediatric Formulations). This extension is not applicable to
orphan drugs [11]

Non-Patent Exclusivities:

The US FDA grants different types of Non-Patent Exclusivities [5] [6]–


1. 5 years for a New Chemical Exclusivity (NCE) for the Active Ingredient approved for the first time
2. 180 days exclusivity for the generic player who first files and maintain an ANDA (Abbreviated New Drug Application) with Paragraph IV
certification, which requires the applicant to prove either that he will not be infringing the innovator’s patent or that the innovator’s patent is
invalid/not enforceable.

3 years of New Clinical Study Exclusivity for submission of “reports of new clinical investigations (other than bioavailability studies) essential
to the approval of the application [or the supplemental application] and conducted or sponsored by the applicant”. For example, in case of
preparation of a drug previously approved, which differs in the route of administration, drug delivery system, dosing regimen, modification of
the drug such as salt or ester, which won’t affect the pharmacological actions of the drug. The exclusivity period would start from the date of
NDA approval of the same drug. This is for the Active Ingredient has been approved before in another application.

1. 5 additional years in case of antibiotics that treat some serious condition, for products that have obtained Qualified Infectious Disease
Products (QIDP) designation under the Generating Antibiotics Incentives Now (GAIN) Act.
2. 7 years for an orphan drug, i.e. the drug for the treatment of the rare diseases
3. 6 months of Pediatric Exclusivity which gets added to the existing Patents and exclusivities.

The table below summarizes these exclusivities in relation to whether innovator and/or generic players can avail them.

Table 1. Scheme of Exclusivities granted by the US FDA


Sr.  NDA
Description  ANDA Applicants
No. Applicant
1 New Chemical Entity (NCE) 5 years NA
New Clinical Investigation (NCI) (Same drug, different
2 route of administration or another form of the same 3 years NA
drug, e.g. salt form)
First Abbreviated New Drug Application, under Para
(IV), with applicant successfully proving the
3 innovators patent invalid, or not infringing, or in case NA 6 months
the infringement suit is not filed within 45 days of
application
Antibiotics with Qualified Infectious Disease Product 5 additional
4 NA
(QIDP) designation to treat serious conditions years
5 Drugs to treat rare disease (Orphan Drugs) 7 years NA
6 additional
6 Pediatric preparation NA
months

The European Medicines Agency, after 2005,started the 8+2(+1) formula which dictates that the innovator will be getting 8 years’
data exclusivity, and 2 years of market protection, during which no generic can be placed on the market, and an additional 1 year
exclusivity for the new indication which shows significant clinical benefit (same as NCI in the US). Prior to this rule, there was a
distinction for nationalized procedure and centralized procedure. The following table indicates the exclusivity period based on the
application date and type.
Date of submission of application For Centralized Procedure For Nationalized Procedure
Before

20.11.2005 (CP) 10 years’ data exclusivity 6a or 10b years’ data exclusivity


30.10.2005 (NP)

8 years data exclusivity


After
+2 years market protection
20.11.2005 (CP)
(+1 year market protection for the new indication showing significant
30.10.2005 (NP)
clinical benefit)

a – Austria, Denmark, Finland, Ireland, Portugal, Spain, Greece, Poland, Czech Republic, Hungary, Lithuania, Latvia, Sweden,
Slovakia, Malta, Estonia, Cyprus, Bulgaria, Romania, Norway, Iceland, and Liechtenstein. (‘6-year countries’)

b – Belgium, Germany, France, Italy, Netherlands, Sweden, United Kingdom, Luxembourg. (’10 year countries’)

In addition to this, the orphan drugs get 2 more years of exclusivity. [7], [11]

India

India has not, as of yet, implemented such provisions, because-


1. Granting of the PTE and Non-Patent Exclusivities would require the establishment of the Patent Linkage system in effect, which is not there
at present, and India is not planning to do it in the near future, because India has not, as of yet, entered into any trade agreement which
requires such provisions.
2. The TRIPS agreement also does not require members to grant such benefits to the innovators, this means that India is in no obligations to
grant PTE and Non-Patent Exclusivities. [8] Whatever pressure is there on Indian policymakers to implement such benefits, are there due to
the Trade Agreements like the Trans-Pacific Partnership (TPP), Regional Comprehensive Economic Partnership (RCEP). These
agreements constitute to a new regime called as TRIPS Plus, which is lobbied by the big pharma companies of the developed countries.
Currently, India is not signatory to any of such agreements.
3. If at all these provisions are implemented, they would severely delay the entry of generic versions of the drugs into the market. India, being a
developing country, simply cannot afford granting PTE and DE to every request, at the expense of access to the poor.
4. On the same lines, the Indian Pharma sector is largely thriving on the generic players, so the industry is hardly affected by the absence of
provisions for PTE and DE.

These provisions have long been sought by the Big Pharma lobby of the developed nations, by criticizing India’s ‘weak’ IP policies.
Companies like Bayer, Novartis have tried to tweak with the legislature for the same purpose. [9] Several generic pharma
companies and access-to-medicines activists like Médecins Sans Frontières (Doctors without Borders) have constantly warned
India about the effects of such provisions, saying that India will no longer remain the ‘Pharmacy of the world’. [10]

Implementing these would be advantageous only to the innovator companies, and millions will be stripped off their right to live a
healthy life. This is being sugarcoated to say that these provisions will boost the trade and innovation in India. On the other hand,
if these provisions are not introduced, India will be under constant pressure to do so at the earliest, but it won’t kill anyone. Now
it is up to the policy makers whom they are going to put first.

About the Author: Mr. Swapnil Chandwade intern at Khurana and Khurana, Advocates and IP Attorneys
(http://www.khuranaandkhurana.com/). In case of any queries, feel free to reach on swapnil@khuranaandkhurana.com
(mailto:swapnil@khuranaandkhurana.com).

References:
EDITORIAL

Warm, warmer: on climate change


NOVEMBER 15, 2017 00:02 IST
UPDATED: NOVEMBER 14, 2017 23:25 IST

Rich countries must pay more for plans to limit and deal with climate change

A s the 23rd conference of the UN Framework Convention on Climate Change in Bonn shifts
into high gear, developing countries including India are focussing on the imperatives of
ensuring adequate financing for mitigation and adaptation. They are moving ahead with specific
instruments for loss and damage they suffer due to destructive climate-linked events. India’s
progress in reducing the intensity of its greenhouse gas emissions per unit of GDP by 20-25%
from 2005 levels by 2020, based on the commitment made in Copenhagen in 2009, has been
positive. Early studies also suggest that it is on track to achieve the national pledge under the
2015 Paris Agreement for a 33-35% cut in emissions intensity per unit of growth from the same
base year by 2030, and thus heed the 2°C warming goal. Since this performance is predicated on a
growth rate of just over 7%, and the parallel target for 40% share of renewable energy by that year,
the national road map is clear. What is not, however, is the impact of extreme weather events such
as droughts and floods that would have a bearing on economic growth. It is in this context that
the rich countries must give up their rigid approach towards the demands of low and middle
income countries, and come to an early resolution on the question of financing of mitigation,
adaptation and compensation. Of course, India could further raise its ambition in the use of green
technologies and emissions cuts, which would give it the mantle of global climate leadership.
 
ALSO READ
The climate question presents a leapfrog era for India’s development
paradigm. Already, the country has chalked out an ambitious policy on
renewable energy, hoping to generate 175 gigawatts of power from green
sources by 2022. This has to be resolutely pursued, breaking down the
At Bonn, stay
the course
barriers to wider adoption of rooftop solar energy at every level and
implementing net metering systems for all categories of consumers. At the
Bonn conference, a new Transport Decarbonisation Alliance has been
declared. It is aimed at achieving a shift to sustainable fuels, getting cities to
commit to eco-friendly mobility and delivering more walkable communities, all of which will
improve the quality of urban life. This presents a good template for India, building on its existing
plans to introduce electric mobility through buses first, and cars by 2030. Such measures will
have a beneficial effect not just on transport choices, but on public health through pollution
abatement. A national law to raise the efficiency of transport could well be the answer, which the
States will readily adopt if supportive financial arrangements are built in. There is some worry
that an increase in coal, oil and gas production could negate some of the gains made. The record in
this sphere will naturally be evaluated against India’s Paris Agreement pledge to use a
combination of incentives for clean production and levies on fuel to maintain a balance.
EDITORIAL

The Hariri mystery: on the former Lebanon PM's absence


NOVEMBER 15, 2017 00:02 IST
UPDATED: NOVEMBER 14, 2017 23:30 IST

The Lebanese PM must return from Saudi Arabia lest his country slides into instability

S aad Hariri’s shock resignation as Lebanon’s Prime Minister has not just plunged the
country into another spell of political instability but also reignited regional tensions
between Saudi Arabia and Iran. Lebanon has been a theatre for proxy regional battles for years.
Eleven months ago, Mr. Hariri, a Sunni with close business and political ties with Saudi Arabia,
had formed a coalition with Hezbollah, a Shia party-cum-militia that has Iran’s support. This
had, in turn, allowed the election of Michel Aoun as Lebanon’s President. But since then Riyadh
has become increasingly impatient with Mr. Hariri’s failure to confront Hezbollah, whose
militia wing was involved in the Syrian civil war on behalf of President Bashar al-Assad, another
Saudi rival. It was against this backdrop that Mr. Hariri announced his resignation on
November 4 from the Saudi capital and blamed Hezbollah and Iran for his decision.
Surprisingly, more than a week later he is yet to return to Lebanon and complete the formalities
of the resignation, so that the coalition can take the next steps. His continued absence has
triggered speculation that he was forced by the Saudis to resign and is being held in Riyadh
against his will at a time when the kingdom is turning up the heat on Hezbollah and Iran.
 
ALSO READ
There are regional stakes involved in this situation. Hezbollah has evolved
Hariri says he
would return to into a battle-hardened semi-conventional military force. In 2006, Israel
Lebanon in the
next two days
attacked Lebanon with the aim of destroying Hezbollah, with little
success. Since then, Hezbollah has amassed weapons from Iran and has got
battlefield training in the Syrian civil war. Its political arm has enormous
influence in Beirut’s corridors of power. Saudi Arabia is concerned about
this growing military and political clout of what it sees as an Iranian proxy.
U.S. President Donald Trump has backed Saudi policies. Riyadh has the
silent support of Israel, which sees Hezbollah as a threat on its northern border. If the Saudis
forced Mr. Hariri to resign, they will prefer another Sunni leader who takes a more
confrontational view of Hezbollah. Saudi Arabia has also asked its citizens to leave Lebanon,
signalling potential military action. Hezbollah, given its capabilities and history of resistance,
may retaliate if its core interests come under attack. It is unfortunate that Lebanon is once
again becoming a pawn on the West Asian geopolitical chessboard. Lebanon’s leaders, who will
recall the horrors of the 1975-1990 civil war, should forge at least a semblance of unity and ask
regional powers to stay out of the country’s domestic politics. They should ask Mr. Hariri to
return home immediately and explain to the people the real reasons behind his resignation, and
why he announced it from Riyadh. Hezbollah should also be ready to address the concerns of its
coalition partners and be wary of disrupting the political balance. Nobody in Lebanon will gain
if this balance is upset.
EDITORIAL

The last resort: on Thomas Chandy's resignation


NOVEMBER 16, 2017 00:02 IST
UPDATED: NOVEMBER 15, 2017 23:42 IST

Kerala Minister Thomas Chandy may have resigned, but it is a little too late

T here is usually little to be gained in delaying the inevitable by a day or two. After the
Kerala High Court passed strictures against him for filing a petition against his own
government, Transport Minister Thomas Chandy should have had the good sense to resign
immediately. But, quite inexplicably, he dithered on the issue, embarrassing Chief Minister
Pinarayi Vijayan and creating divisions within the ruling Left Democratic Front (LDF). Indeed,
once Alappuzha District Collector T.V. Anupama submitted a report on alleged encroachments
by a company in which he holds a stake, Mr. Chandy should have stepped down as a matter of
propriety. By moving the court challenging the Collector’s report, prepared on the orders of
the government, he virtually invited the judicial reprimand on himself. That he entertained
the hope of tiding over the political crisis engulfing him even after the court’s strictures
betrays a strange mix of nose-in-the-air arrogance and head-in-the-sand ignorance. For the
past few months, Mr. Chandy has been caught in the encroachments controversy. The Lake
Palace Resort, part-owned by him, came under a cloud over issues related to reclamation of
paddy land to create a vehicle park, diversion of the course of rivulets for construction
activities, and laying of an approach road to the resort by filling paddy fields. That the
Minister chose to stand by the resort, and not with the government, was the real shocker.
 
ALSO READ
As for Mr. Vijayan, he should have sacked Mr. Chandy instead of leaving
it to the Nationalist Congress Party to secure his resignation. That the
Minister belonged to a smaller allied party and that the LDF is bound by
a coalition dharma are justifications that do not wash in the face of a
Thomas Chandy
row drives a
strong judicial stricture. Not surprisingly, the Communist Party of India
deep wedge in saw things differently and boycotted a Cabinet meeting on the ground
LDF
that Mr. Chandy was a participant. The party argued that Mr. Chandy
could not be expected to discharge his responsibilities as a Minister after
having challenged the government in a court of law. The CPI’s strident stand can also be
explained by the fact that one of its members, E. Chandrasekharan, holds the Revenue
portfolio and was monitoring the action against the encroachments. The eventual exit of Mr.
Chandy on Wednesday might pave the way for the return of his party colleague A.K.
Saseendran to the Cabinet. Mr. Saseendran had to resign following a questionable sting
operation in which he is heard allegedly seeking sexual favours from a woman. The LDF is not
short of talent, but coalition dynamics require that Mr. Vijayan replace Mr. Chandy with the
only other MLA from the NCP. Despite a comfortable majority, Mr. Vijayan might not want to
risk upsetting the political equations within the LDF. The real test for him will be to ensure
that governance does not suffer amid his deft political manoeuvres.
Azzurri - nick name for Italian national teams.

EDITORIAL

Azzurri, fading: on the crisis in Italian football


NOVEMBER 15, 2017 22:40 IST
UPDATED: NOVEMBER 15, 2017 23:50 IST

Italian football has hit its lowest point in decades and needs a thorough overhaul

A month ago, when Holland failed to make it to the 2018 FIFA World Cup in Russia,
there was none of the shocked despair that hangs over Italy’s non-qualification
following its defeat to Sweden in the two-legged play-off. Football in the Netherlands is facing
its worst crisis and its fans have perhaps become used to under-performance. Since 1982, the
team has failed to make it to the quadrennial extravaganza on four different occasions. Dutch
footballers were always expected to thrill but not necessarily to win. Even the legendary Johan
Cruyff didn’t bag football’s most coveted prize. But Italy is different. The Azzurri have always
found a way, regardless of the circumstances. Italy went into the 2006 World Cup with a
match-fixing scandal raging back home; it ended up lifting the trophy. Another scandal
erupted ahead of the 2012 European Championship, but Italy emerged a worthy runner-up to
Spain. Four years later, Italy went in with arguably its weakest squad ever but still outwitted
reigning champion Spain and lost to Germany in the quarter-finals only on penalties. This is
what makes the four-time champion missing out on the World Cup, for the first time since
1958, astounding. It is true that the qualification process left very little margin for error, with
only the group topper earning a direct entry. Clubbed alongside Spain, Italy was always
expected to come second and be in the playoff. Once there, it was unlucky to draw Sweden, the
toughest of opponents. But even so, its performances have been truly worrying.

Italian football has been stagnant for quite a while. In recent times the national team has even
registered draws against novices such as Haiti and Luxembourg. There have been no credible
replacements in sight for the likes of Andrea Pirlo, Francesco Totti, Alessandro Del Piero and
Alessandro Nesta. Only manager Antonio Conte’s brilliance saved the country at the 2016
Euros. There is such a dearth of emerging talent that in the first leg against Sweden, seven of
Italy’s starting 11 were older than 30. Supporters even sought comfort in the team’s
unblemished record at the iconic San Siro stadium in Milan, causing Pirlo to remark, “I’ve
never seen a goal scored from the stands.” There is much to be blamed on current manager
Giampiero Ventura. He repeatedly ignored players who were adept and schooled in modern-
day tactical methods. Midfielder Jorginho, who has been excellent for Napoli, was only handed
his debut against Sweden while forward Lorenzo Insigne, the most creative of the lot, was an
unused substitute because the formation that Ventura used didn’t suit his best player. But
history suggests Italy isn’t alone. Both Germany and France underwent similar turbulence
before emerging stronger with a complete overhaul of their footballing structures. What Italy
needs is similar soul-searching.
EDITORIAL

Coup de Grace: on Zimbabwe's political crisis


NOVEMBER 17, 2017 00:15 IST
UPDATED: NOVEMBER 17, 2017 00:26 IST

The contours of a post-Mugabe Zimbabwe are still not clear

Z imbabwe’s prolonged political crisis reached the boiling point earlier this month when
President Robert Mugabe dismissed the Vice-President, Emmerson Mnangagwa. A
battle to succeed the 93-year-old liberation hero-turned President had already been brewing
within the ruling Zimbabwe African National Union-Patriotic Front (Zanu-PF), with the old
guard backing Mr. Mnangagwa, himself a freedom fighter, and ‘Generation 40’, a grouping of
younger leaders supporting Mr. Mugabe’s 52-year-old wife, Grace. Ms. Mugabe, known for her
extravagant lifestyle and interfering ways, has been vocal in recent months about her political
ambitions. Mr. Mugabe was seen to have endorsed her when on November 6 he dismissed Mr.
Mnangagwa. But Mr. Mugabe, who has ruled Zimbabwe since its independence in 1980, erred
on two counts: he underestimated the deep connections Mr. Mnangagwa has within the
establishment and overestimated his own power in a system he has helped shape. In the good
old days, Mr. Mugabe was able to rule with an iron grip. But those days are gone. Age and
health problems have weakened his hold on power, while there is a groundswell of anger
among the public over economic mismanagement. So when he turned against a man long seen
by the establishment as his successor, Mr. Mugabe left little doubt that he was acting from a
position of political weakness. This gave the security forces the confidence to turn against him
and make it clear they didn’t want a Mugabe dynasty.
 
ALSO READ
The military doesn’t want to call its action a coup d’etat, for obvious
reasons. A coup would attract international condemnation, even
sanctions. But it is certain that the army chief, Gen. Constantino
Chiwenga, is in charge. His plan, as it emerges, is to force Mr. Mugabe to
Will never
accept
resign and install a transitional government, perhaps under Mr.
Zimbabwe coup: Mnangagwa, until elections are held. If Mr. Mugabe doesn’t resign, it will
African Union
complicate the process. He has not been seen since the army took over
the capital, Harare. Any attempt to hurt him could backfire. Even if he
agrees to resign, the transition may not be smooth. However inept and dictatorial Mr.
Mugabe’s regime had been, a coup will remain a coup irrespective of what the plotters call it,
raising questions of legitimacy about the new government. Also, Mr. Mugabe can still tap into
his support base among the black working class, which has provided him a buffer against
public anger towards his government. Across Africa, he continues to be seen by many as an
anti-colonial hero. His successor, who will be picked by the generals, will inherit huge
challenges — a dysfunctional economy, massive unemployment, a broken ruling party and a
united opposition. Besides, the military has shaken up the civilian supremacy over the armed
forces by staging this coup. The biggest challenge for the new leader will be to make sure that
the military stays in the barracks.
EDITORIAL

Overreach: on the T.N Governor meeting govt. officials


NOVEMBER 17, 2017 00:15 IST
UPDATED: NOVEMBER 17, 2017 00:30 IST

Tamil Nadu Governor’s meetings with officials have no place in a parliamentary


democracy

I t is an act of constitutional impropriety for the Governor of a State to review the work of
government officials when an elected regime is in place. By holding meetings in
Coimbatore to review programmes, the Tamil Nadu Governor, Banwarilal Purohit, has left
himself open to charges that he has breached the constitutional limits of his office. Mr.
Purohit met the District Collector, the Commissioner of Police and the Corporation
Commissioner without any Minister present. The Governor has attempted to explain his
interactions, saying he was seeking to familiarise himself with the administration and that
he could appreciate its work in implementing schemes only if he got to know all details first
hand. But this is hard to accept as a justification and his plan to visit all districts for a similar
review does not augur well for parliamentary democracy. Article 167 of the Constitution says
it is the Chief Minister’s duty to communicate to the Governor all decisions of the Council of
Ministers relating to the administration and proposals for legislation. It enjoins the Chief
Minister to furnish such information relating to the administration as the Governor may call
for. If Mr. Purohit wants to understand how schemes are being implemented, he can seek
details from the Chief Minister, Edappadi K. Palaniswami, instead of holding meetings in the
districts. There may be occasions when the Governor may need to ask a top bureaucrat or the
head of the police force for a report on a major incident or development, but even that
should be for the limited purpose of getting an accurate picture before sending a report to
the Centre.

The political context in which Mr. Purohit is exhibiting his zeal to familiarise himself with
the administration is significant. There is a sense of drift in governance in Tamil Nadu, and it
is widely believed that it is running on ‘autopilot’. The Chief Minister’s majority in the
Assembly is in doubt, given that the Speaker had to disqualify 18 dissident legislators to
shore up his support within the legislature party. An impression has gained ground that the
Bharatiya Janata Party is seeking to fill the perceived political vacuum, but is caught in a bind
on how to go about it because of its lack of a political base in Tamil Nadu. Therefore, the
Centre is seen as leaning on the State government and the ruling AIADMK to help the BJP
gain a political foothold. The prospect of the State coming under a spell of President’s Rule if
the present regime formally loses its majority in the House is on everyone’s mind. Therefore,
Mr. Purohit’s familiarisation exercise is bound to be read for signs of what the future has in
store. Mr. Purohit will do well not to fuel such speculation. None of this, of course, implies
that the Governor should refrain from taking an independent view of any matter or
legislative proposal. But his functioning should be within the bounds of established norms
and conventions.
EDITORIAL

An absurd canvas: on Padmavati


NOVEMBER 18, 2017 00:02 IST
UPDATED: NOVEMBER 17, 2017 23:50 IST

Padmavati should not be allowed to become a victim to violent vigilantes

T he coalition ranged against the screening of Padmavati, a big-budget period drama, is


growing more violent and absurd by the day. The Uttar Pradesh government has joined the
ranks of the Karni Sena, a self-styled Rajput organisation that uses vigilante methods to uphold
its notion of caste honour, to raise anxiety about the film’s scheduled release on December 1.
Lucknow has written to the Union Information and Broadcasting Ministry requesting that the
Central Board of Film Certification be alerted of the “public sentiment” about distortion of “facts”
in the film. Its release, the U.P. government has said, could disrupt law and order in the State,
especially with the administration’s energies focussed on the municipal elections in end-
November. Governments are expected to enforce law and order, not buckle down in the face of
threats — whether perceived or real. As the Supreme Court observed in S. Rangarajan vs. Jagjivan
Ram, a mere threat to public order cannot be a ground to suppress freedom of expression. By
harping on the question of “historical facts” in connection with a film based on a work of fiction,
the government is tacitly endorsing random groups and persons using Padmavati to delineate
their notions of Rajput honour and Hindu-Muslim enmity. Over in Rajasthan, a Minister, Kiran
Maheshwari, has intemperately railed against the film. And the Karni Sena, which vandalised the
sets on location in Rajasthan earlier this year and on Friday blocked entry into the Chittorgarh
fort where the story is set, freely hands out threats to the life and well-being of those associated
with Padmavati, especially Deepika Padukone, its lead actor. Even Congress politicians are
counselling that “sentiments” must be heeded.
 
ALSO READ
Sanjay Leela Bhansali, the film’s director who is known for his lush sets and
high emotion, has been at pains to give an assurance that he has not
distorted history. Leave aside the fact that the story draws from a 16th
century Sufi poem, ‘Padmavat’, and has over the centuries been retold across
The many
Padmavatis
north India, and that there is no historical record of Padmavati’s existence,
the insistence on demanding accuracy in period dramas is anyway an
infringement on creativity. Fictionalising the past is a longstanding way of
understanding it, from K. Asif’s Mughal-e-Azam to Oliver Stone’s JFK. But
the anxieties that are driving the Karni Sena and members of the Sangh Parivar are evident. That
Alauddin Khilji, the Delhi Sultan who wages war in the story to try to win the beautiful
Padmavati, could be humanised obviously disturbs the Hindutva narrative about ‘evil invaders’.
The visuals of the heroine singing and dancing evidently militate against the latter-day
patriarchal telling of Padmavati’s story, in which she is shorn of agency and is dutifully
circumscribed by notions of purity and honour. In this, it is not just that the film is fuelling such
worries: the film is being used to heighten such anxieties and consolidate a regressive and
intolerant world view.
EDITORIAL

Timely recognition: on the Moody's upgrade


NOVEMBER 18, 2017 00:02 IST
UPDATED: NOVEMBER 17, 2017 23:38 IST

The Moody’s upgrade underlines the need for the government to stay the reform
course

M oody’s decision to upgrade India’s sovereign credit rating by a notch after a gap of
almost 14 years is undoubtedly a welcome recognition of the country’s enormous
economic potential. It has been driven by some of the recent structural reforms — including
the implementation of a long-delayed nationwide goods and services tax (GST), and moves to
address the logjam of mounting bad loans in the banking sector through an Insolvency and
Bankruptcy Code. These are expected to help ensure a healthier enabling environment to
realise this potential over the longer term. The ratings agency has said the reforms
undertaken until now would “advance the government’s objective of improving the business
climate, enhancing productivity, stimulating foreign and domestic investment, and
ultimately fostering strong and sustainable growth.” And viewed in conjunction with the
sizeable foreign exchange reserves, India’s overall capacity to absorb shocks is now seen as
much better. The market reaction — with the stock indices and the rupee posting handsome
gains intraday — signals that local businesses and overseas investors see the upgrade as a vote
of confidence in the economy and the policy approach to economic management and reforms,
especially at a time when momentum has slowed to a 13-quarter low.
 
ALSO READ
Still, as Moody’s has flagged in explaining why it has opted to change the
ratings outlook to ‘stable’ from ‘positive’, the “high public debt burden
remains an important constraint on India’s credit profile relative to
peers.” At 68% of its GDP in 2016, general government debt in India is
The Hindu
Explains: What
significantly higher than the 44% median for other similarly ranked
are credit economies, according to the New York-based agency, which sees the
ratings and how
are they given?
debt-to-GDP ratio widening by about 1 percentage point this fiscal year
to 69%. Moody’s cites “the large pool of private savings available to
finance government debt”, the steps taken to enlarge the formal economy by mainstreaming
more and more businesses from the informal sector, and measures aimed at improving
spending efficiency through better targeting of welfare measures, as all broadly supportive of
a gradual strengthening of the fiscal metrics over time. But it is this very same ‘time’ element
that holds the key to how the macro-economic situation could evolve. With economists and
monetary authorities warning of the likelihood of fiscal slippages as a consequence of farm
loan waivers by States, the Centre’s implementation of the pay commission’s award and even
weaker tax receipts amid teething issues with the GST, there is a danger that the government
may end up missing its fiscal deficit targets in the near term. And therein lies the challenge.
For the economy to capitalise on this upgrade, the political leadership must stay the reform
course, electorally alluring temptations to resort to populism notwithstanding.
EDITORIAL

Search, seize, cease: on I-T raids at Jayalalithaa's residence


NOVEMBER 20, 2017 00:02 IST
UPDATED: NOVEMBER 20, 2017 00:18 IST

The IT department needs to deepen the probe against political figures in Tamil
Nadu

I n Tamil Nadu’s politically surcharged atmosphere, almost everything takes on a


political hue. Searches and seizures by the Income Tax department following the
death of Chief Minister Jayalalithaa were without doubt integral to the clean-up
operation in a State known for brazen corruption and abuse of power at different levels.
But some of the actions of the enforcement agencies have given the impression that they
are selective in nature, leading to charges that they were motivated by the political
interests of the Bharatiya Janata Party, which heads the government at the Centre. In the
latest instance, Income Tax officials searched the residence of Jayalalithaa, following up
on seizures made at properties held by the family of her friend V.K. Sasikala. But curiously,
Income Tax officials were insistent that the rooms used by Jayalalithaa were not the object
of inquiry, only those used by Sasikala and secretary S. Poongundran. Jayalalithaa remains a
revered figure in Tamil Nadu’s politics, and the BJP’s efforts over the last several months
have been two-fold: to acknowledge her political legacy and to denounce the claims of the
Sasikala family as its true inheritor. Not surprisingly, in an attempt to undermine the BJP’s
control of the narrative, Sasikala’s nephew, T.T.V. Dhinakaran, described the searches as an
assault on Jayalalithaa’s soul. The credibility of the searches thus hinges on the Income Tax
department widening the net beyond the Sasikala family and cracking down on
corruption at the highest levels.

Adding to the credibility issue is the evident lack of serious follow-up on searches made
earlier. Within weeks of Jayalalithaa’s death, Income Tax officials conducted searches
against the then Chief Secretary, P. Rama Mohana Rao, and claimed to have unearthed
assets disproportionate to his known sources of income. But almost a year later, there is
little forward movement in the case. Similarly, searches at the properties of Health
Minister C. Vijaya Baskar, a confidant of Mr. Dhinakaran, have yielded little in terms of
framing of charges. Mr. Baskar remains a Minister, but he is a little warier of associating
openly with Mr. Dhinakaran. The political impact of the searches is infinitely greater than
their legal consequences. Both factions of the AIADMK seem eager to please the BJP, which
does not have much more than a toehold in the State. In the absence of the searches
resulting in serious action, the Central enforcement agencies will appear as no more than
political weapons in the hands of the BJP. Widening the scope of and deepening the probe
consequent to the searches are essential for taking the drive against political corruption to
its logical end. Just as important, however, is the need for enforcement agencies to
demonstrate their independence and credibility.
EDITORIAL

Pacific Ocean’s 11: on TPP without U.S.


NOVEMBER 19, 2017 22:10 IST
UPDATED: NOVEMBER 20, 2017 00:09 IST

The revival of the Trans-Pacific Partnership minus the U.S. opens opportunities for
India

W hen Donald Trump abandoned the 12-nation Trans-Pacific Partnership (TPP) in his
very first week after being sworn in as U.S. President, there were doubts whether the
trade agreement, painstakingly negotiated over more than a decade, would survive. Japanese
Prime Minister Shinzo Abe had termed the TPP without the United States — which
contributed 60% of the combined Gross Domestic Product of the 12 members — as
“meaningless”. Ten months on, exactly at a time when Mr. Trump was visiting Vietnam, trade
ministers from the remaining 11 nations agreed in Danang in principle to a new pact, the
Comprehensive and Progressive Agreement for the Trans-Pacific Partnership (CPTPP),
revising some of the features of the TPP. For the agreement to take effect, the pact requires
domestic ratification, which is expected to be complete by 2019. This major step taken by the
11 countries of the Pacific Rim excluding the U.S. is a reflection of two things. First, these
countries recognise that multilateral free trade, contrary to any misgivings, is beneficial in the
long run. The TPP in its current form has significant protections for labour and environment
and is in this regard an advance over other free trade agreements. Second, the U.S.’s self-
exclusion reflects a failure on the part of the Trump administration; studies have shown
significant benefits in comparison to minor costs — in terms of jobs — to the U.S. on account of
the pact.

As things stand, the pact without the U.S. can only be interpreted as yet another step that
diminishes American power and the international order that it has so far led. Already, Mr.
Trump’s decision to pull out of the Paris climate accord and his repudiation of the Iran nuclear
deal have raised suspicions about American commitment to well-negotiated treaties that seek
to solve or have solved long-standing issues. Mr. Trump couches his regime’s policies as
populist nationalism — ‘protecting labour’ in the case of the abandonment of the TPP,
promoting jobs in fossil fuel-intensive sectors to justify the repudiation of the Paris Accord,
and retaining American exceptionalism in West Asian policy in scrapping the Iran nuclear
deal. While rhetoric to this effect had fuelled his presidential campaign with a heavy dose of
populism, the actual effect of going through with these actions has been to create a suspicion
among America’s allies about his reliability when it comes to standing by old commitments.
Mr. Trump’s agenda to pull his country out of multilateral agreements has coincided,
ironically, with the rise of China as the leading world power promoting globalisation. Now the
ASEAN-plus-six Regional Comprehensive Economic Partnership (RCEP), on which China is
pushing for an agreement, could benefit from complementarities with the CPTPP. India,
which is also negotiating the RCEP, must utilise this opportunity to win concessions on
services trade liberalisation as part of the plan.
EDITORIAL

Falling apart — On Germany political crisis


NOVEMBER 20, 2017 22:29 IST
UPDATED: NOVEMBER 21, 2017 00:09 IST

As talks on a coalition fail in Germany, Angela Merkel faces her career’s biggest
challenge

T he crisis over government formation in Berlin has raised the possibility of fresh
elections in Germany and the ripple effect of instability in the European Union. The
breakdown in talks between Chancellor Angela Merkel’s Christian Democratic Union and
potential partners to get the requisite numbers in the Reichstag has dealt a blow to a time-
tested post-War model of political compromise and consensus-building. A major sticking
point in the coalition negotiations among the three ideologically disparate parties — the
centre-right CDU, the left-wing Greens and the pro-market Free Democratic Party — was
whether the hundreds of thousands of Syrian refugees who migrated to Germany should be
allowed to bring their families. Curiously, the CDU conceded the extension of the current
freeze on family reunion, on the insistence of its sister party, the Christian Social Union. This
is a substantial concession from a party that backed the government’s bold decision to open
the doors in 2015 to rescue millions who had risked their lives to reach Europe. The Greens,
key allies in a potential Jamaica coalition with the conservatives and the FDP, fell in line,
despite their humanitarian stance on refugees. But the FDP dug in its heels, demanding the
phasing out of a tax to support Germany’s eastern regions. Remarks by its leader that it is
better not to govern than govern badly is a measure of the discord during the negotiations.

In this fluid scenario, another general election cannot be ruled out, especially as the centre-
left Social Democratic Party has so far foreclosed the possibility of cohabiting with the
conservatives in another grand coalition. After it received its worst-ever drubbing in the
September elections, the party may be reluctant to revisit its position, lest it risk further
erosion of its popular base. But in the unlikely event of it backing the CDU, the Social
Democrats may insist on offering support to a candidate other than Ms. Merkel as Chancellor.
A minority government led by the CDU is a theoretical possibility, but even the conservatives
do not seem to warm up to it. That leaves the President with the responsibility of determining
whether fresh elections are the only option. The far right Alternative for Germany, which
emerged as the third largest party in the elections, believes it can further consolidate those
unprecedented gains — something the mainstream parties will be conscious of during last-
ditch attempts to cobble together a coalition. The proof of the efficacy of the German
consensus model lay in solidifying the political centre-ground over the decades. The need for a
strong middle ground could not be greater than it is at this point. Once the Netherlands and
France averted political instability at the hands of populist and eurosceptic parties earlier this
year, the outcome in Germany had appeared to be a foregone conclusion. Perhaps not.
EDITORIAL

A fine balance — On the National Anti-profiteering


Authority
NOVEMBER 20, 2017 22:29 IST
UPDATED: NOVEMBER 21, 2017 00:09 IST

The GST’s anti-profiteering body must not become a tool of harassment

O ver four months into the troubled implementation of the goods and services tax, the
Centre has operationalised a provision in the GST law that has been worrying industry.
The National Anti-profiteering Authority, whose constitution was approved by the Cabinet
last Thursday, is empowered to crack down on firms that fail to pass on the ‘benefits’ of the tax
regime to consumers. The authority can order businesses to reduce product prices or refund to
consumers ‘undue benefits’; in extreme cases it can impose a penalty on errant firms and
cancel their registration as taxpayers. Where the consumers are difficult to trace individually,
the amount construed by the authority to be the extent of undue benefit will be deposited in a
consumer welfare fund. The authority will have its own bureaucracy — including a screening
committee in each State that consumers can complain to; a standing committee in which
profiteering allegations with an ‘all-India’ impact can be taken up; and an investigation wing
that will vet complaints ‘with prima facie’ merit and report its findings to the NAA. More
clarity is needed on how the government will ascertain the difference between undue profit
and fair play — or the discretionary space available to the NAA could enable rent-seeking.
The trigger for setting up the authority is clearly the recent large-scale reduction in tax rates
on more than 300 items, of which about 200 rate changes were to come into effect from
November 15. The government is keen on ensuring that consumers have a better perception
of the GST’s ground-level impact. Union Finance Secretary Hasmukh Adhia has urged
companies (especially those in the fast-moving consumer goods segment) to ensure that new
maximum retail prices are inscribed on products from November 15, even on existing
inventory in the market. While wholesalers can still implement this, reaching every last
retailer is a challenge. But firms have been warned that the entire retail chain must reflect
revised prices in order to avoid anti-profiteering action; and the expectation is that there will
be some exemplary action soon to make industry fall in line. Restaurant chains are also likely
to face the heat for retaining price hikes; even though their tax rate has dropped, they no
longer get any credits for taxes paid on inputs. Protecting consumer interest is important, but
the prospect of the government monitoring prices and asking businesses to justify pricing
decisions instead of letting market forces play out is unnerving. The NAA could take a cue
from, if not partner, the Competition Commission of India in this, and focus on firms raising
prices indiscriminately in markets where they enjoy a dominant position, or forming pricing
cartels. The government must ensure that the authority’s powers are used transparently and
only where there is genuine consumer/public interest at stake. Else, it runs the risk of making
profit itself a bad word.
EDITORIAL

Born to rule — On Rahul Gandhi's elevation


NOVEMBER 22, 2017 00:04 IST
UPDATED: NOVEMBER 22, 2017 00:05 IST

But only sound political vision will help Rahul Gandhi in the face-off with Narendra
Modi

F rom the time he entered politics, and won Amethi in 2004, Rahul Gandhi knew the
leadership of the Congress was his for the asking. The only question was when his
mother, Sonia Gandhi, would be ready to step down. The inevitable succession from
mother to son is related to the very nature of the Congress. Unfortunately for the party, no
one but a member of the Nehru-Gandhi family can hold its potentially fractious elements
together. So, in the absence of some totally unexpected twist, the December election
process announced will see Mr. Gandhi as Congress president. This will formalise his de
facto position as the leader of India’s largest opposition party, which is struggling to stitch
together a national-level alternative to the resurgent BJP, under the Amit Shah-Narendra
Modi combine. The timing of the elevation is significant. In the period immediately after
the devastating defeat in the 2014 Lok Sabha election, the Congress did not want to push
Mr. Gandhi to the top: that would have meant exposing him to unflattering comparisons
with Mr. Modi, when the BJP was in its most dominant phase. Despite Ms. Gandhi’s ill-
health, Mr. Gandhi seemed in no hurry to take up the leadership. That he is taking on the
responsibility just before the Assembly election in Gujarat, a State the Congress has not
won since 1985, is a signal to the electorate that Mr. Gandhi is ready for the long haul.
The real challenge for Mr. Gandhi is not winning the Congress leadership, but positioning
himself as a rock in the way of the Modi juggernaut. When his mother chose not to stake
claim for the prime ministership in 2004, and instead invited Manmohan Singh to head the
UPA government, he might have assumed that only youth and inexperience stood in his
way. But in the years since then, Mr. Gandhi betrayed a sense of entitlement without
showing a willingness to be part of the government. At no time was this more evident than
when he wanted torn up an ordinance promulgated by his own government to negate a
Supreme Court verdict on disqualification of legislators on their conviction by a trial court.
What he projected as a stand in keeping with public opinion came across as an arrogant act
by a dynast against a Prime Minister beholden to him for staying in power. More recently,
Mr. Gandhi has shown greater political maturity. He has spoken up against the failings of
the Modi government and refused to be cowed down by trolls on social media. Dynasty
might have taken him to the top of the party, but if he is to lead a country of India’s size, he
will have to articulate a political vision people buy into. Nothing will be gained by waiting
for Mr. Modi to mess up. Mr. Gandhi will need to show he is prime ministerial material, not
just a reflexive critic of Mr. Modi and the BJP’s brand of politics.
EDITORIAL

Helter Skelter — On the legacy of Charles Manson


NOVEMBER 22, 2017 00:02 IST
UPDATED: NOVEMBER 22, 2017 00:08 IST

Charles Manson’s murderous ways hold out a special caution for the America of today

Charles Manson, convicted for the brutal 1969 murders of nine individuals in California, died a
natural death last Sunday, at the age of 83. His passing however will not diminish the profound
influence that he and the “Manson Family,” a quasi-commune comprising mostly of abused and
broken young women, had on the popular culture of the 1960s, a troubled decade that witnessed
an intensifying battle for civil rights, the peak of the anti-war movement, and the
“counterculture” associated with hippies, drug abuse, and free love. Manson and his followers
were regarded by some as symbols of the dark side of this counterculture movement. Their
notoriety came in August 1969, when, acting upon Manson’s instructions four of his followers,
three women and a man, entered a posh Hollywood Hills home and slaughtered a heavily
pregnant actress Sharon Tate – also the wife of film director Roman Polanski – and four of her
friends. One of Manson’s followers, Susan Atkins, scrawled the word “pig” on the front door with
the Ms. Tate’s blood, hinting at Manson’s paranoid delusions about fomenting a race war by
framing African-Americans for this gruesome killing spree. Again, directed by Manson, his
“family” went on to murder a wealthy couple in Los Angeles, Leno and Rosemary LaBianca, the
following day, and they separately killed a Hollywood stuntman and another acquaintance of the
group. Although Manson was convicted of first-degree murder in 1971, he escaped capital
punishment after California outlawed the death penalty a year later.

Despite the depravity of Manson’s actions, his legacy has unfortunately been a contested notion.
The fact that he achieved pop culture infamy through a variety of antics during his trial, and that
this spawned an entire genre of “true crime” books and television movies, has muddied the
recognition of the true horror of his outlook. Manson had a well-documented hatred of Jewish
people, African-Americans and women. Rather than the liberal counterculture movement of the
1960s, his bigoted philosophy bears a disturbing resemblance in some respects with the far-right
or alt-right brand of neo-fascism that has mushroomed in certain pockets of U.S. politics recently.
Take Dylann Roof, for example, the white supremacist who also murdered, coincidentally, nine
African-Americans in Charleston, South Carolina, in 2015. He too spoke of “race war” and lapped
up alt-right materials online, indulging in the very same apocalyptic race-ramblings that Manson
did. Manson was also known for drawing inspiration from the Beatles song “Helter Skelter,” which
he interpreted as a description of an impending a race war that his band of white heroes had to
survive. This narrative of race hate is currently undergoing a renaissance of sorts in the U.S., and
this has coincided with the vitriolic campaign and administrative tenor of President Donald
Trump. Neo-Nazis such as Richard Spencer appear emboldened by Mr. Trump’s wink-and-nod
approach. The legacy of Manson should serve, if anything, as a poignant reminder to liberal
America that the pillars on which their pluralist democracy was built must never be taken for
granted.
EDITORIAL

The numbers game — On India’s victory at the ICJ


NOVEMBER 23, 2017 00:02 IST
UPDATED: NOVEMBER 23, 2017 00:22 IST

India’s victory at the ICJ reinforces the importance of small power diplomacy

T he election of Justice Dalveer Bhandari to the International Court of Justice for a


second term is a major diplomatic success for India. Five of the 15 judges of the ICJ
are elected every three years. This year there were six candidates for five slots. The winning
candidates required a majority in both the United Nations General Assembly and the
Security Council in simultaneous voting through secret ballot. While four candidates were
elected smoothly, Justice Bhandari and Christopher Greenwood of the United Kingdom
ended in a dead heat as the former won the UNGA and the latter the UNSC in multiple
rounds of voting. The U.K. wanted to end the voting and move to a conference mechanism,
which involves selecting a panel of three UNGA members and three UNSC members, who
would then elect the judge. This mechanism has never been used before. India opposed the
move, and the U.K. could not gather adequate support for its demand in the UNSC. The U.K.
then withdrew its candidate, paving the way for Justice Bhandari’s re-election. India and
the U.K. had staked considerable diplomatic goodwill in the election, and the outcome is
significant politically for both.

For the first time, the U.K. will not have a judge on the ICJ. It is also the first time that a
permanent member of the UNSC has lost at the ICJ on a vote. For British Prime Minister
Theresa May the loss comes at a difficult time as she struggles with the process of leaving
the European Union and with her own leadership coming under assault from Conservative
MPs. In this context, the loss at the ICJ is being read as confirmation of the U.K.’s
diminishing role in global affairs. As America’s inseparable and unquestioning junior
partner, the country had asserted its relevance in the post-War order even as its military
and economic power eroded. With the U.S. under President Donald Trump less guided by
the “special relationship” with the U.K., a post-Brexit U.K. will have to do much more
heavy-lifting in multilateral forums. For India, soon after its failure to gain membership to
the Nuclear Suppliers Group, the lobbying for the ICJ election has different lessons. With
all five permanent members of the UNSC fiercely locking arms to protect their collective
interest of dominating the world body, India’s success was built primarily on the support of
developing countries, among whom it has nurtured goodwill over the decades. Japan also
appeared to align with the P-5. India’s call for a more equitable world order has a better
resonance among developing countries than the custodians of the current order. India’s
support in the UNGA was expanding with subsequent rounds of voting, a reality the U.K.
and the U.S. could not brush aside. For India, the takeaway is clear: to find a louder global
voice, it also needs to put more emphasis on ties with countries away from the high table.
EDITORIAL

Pill talk — On antibiotic resistance


NOVEMBER 23, 2017 00:02 IST
Predicament - a difficult, unpleasant, or embarrassing
UPDATED: NOVEMBER 23, 2017 00:03 IST
situation.
Consumer awareness is needed on the danger of reckless antibiotic use

A round the time the UN Climate Change Conference drew to a close in Bonn last week,
so did the World Antibiotic Awareness Week, a World Health Organisation campaign to
focus attention on antibiotic resistance. The global threats of climate change and antibiotic
resistance have much in common. In both cases, the actions of people in one region have
consequences across the globe. Also, tackling both requires collective action across multiple
focus areas. For resistance, this means cutting the misuse of antibiotics in humans and farm
animals, fighting environmental pollution, improving infection control in hospitals, and
boosting surveillance. While most of these goals need government intervention, individuals
have a critical part to play too. This is especially true for India, which faces a unique
predicament when it comes to restricting the sale of antibiotics — some Indians use too few
antibiotics, while others use too many. Many of the 410,000 Indian children who die of
pneumonia each year do not get the antibiotics they need, while others misuse drugs, buying
them without prescription and taking them for viral illnesses like influenza. Sometimes this
irrational use is driven by quacks. But just as often, qualified doctors add to the problem by
yielding to pressure from patients or drug-makers. This tussle — between increasing
antibiotic use among those who really need them, and decreasing misuse among the
irresponsible — has kept India from imposing blanket bans on the non-prescription sale of
these drugs.
When policymakers did propose such a ban in 2011, it was met with strong opposition.
Instead, India turned to fine-edged tools such as the Schedule H1, a list of 24 critical
antibiotics such as cephalosporins and carbapenems, whose sale is tightly controlled. But even
Schedule H1 hasn’t accomplished much: pharmacists often flout rules, and drug controllers
are unable to monitor them. Thus, the power to purchase antibiotics still remains in the hands
of the consumer. It is up to consumers now to appreciate the threat of antibiotic resistance
and exercise this power with care. These miracle drugs form the bedrock of modern medicine
today, and are needed for everything from prophylaxis for a complicated hip surgery to
treatment for an infected knee scrape. Losing these drugs would mean that even minor
illnesses could become killers, and the cost of health care will soar. Consumers need to
remember that not all illnesses need antibiotics, and the decision on when to take them and
for how long is best left to a doctor. Multi-resistance in some tertiary-care hospitals to bugs
like Staphylococcus aureus has grown to dangerous levels. But the experience of countries like
Australia shows that cutting down on antibiotics can reverse such trends. The National Action
Plan on Antimicrobial Resistance aims to repeat such successes in India. Meanwhile,
awareness must be built among consumers so that they see the coming crisis and take up the
baton.
EDITORIAL

Politics and Padmavati


NOVEMBER 24, 2017 00:15 IST
UPDATED: NOVEMBER 23, 2017 22:26 IST

Chief Ministers cannot cite law and order threats as an excuse to curb free
expression

G iven the violence and the threats, it is perhaps not surprising that the producers of
Padmavati have decided to ‘voluntarily’ defer its release. But irrespective of how this
changed timetable plays out, the conduct of politicians over the past few days has been
cynical and deeply unmindful of the rule of law. In February 1989, days after Ayatollah
Khomeini of Iran had issued a fatwa against him for his novel The Satanic Verses, Salman
Rushdie published an open letter to Rajiv Gandhi, then Prime Minister. He reminded the
Prime Minister that his book had already been banned in India in October 1988, under the
Customs Act, and that while issuing the curb on its import the Finance Ministry clarified
that the “ban did not detract from the literary and artistic merit of Rushdie’s work”. “Thanks
for the good review,” wrote Rushdie, adding that it appeared “as if your Government has
become unable or unwilling to resist pressure from more or less any extremist religious
grouping”. It is worth recalling that letter, as it provides a benchmark to map the race to the
bottom in the current row over Padmavati. Today, as a number of Chief Ministers across
north India rail against the film and threaten to disallow its screening without requisite cuts,
there is no longer even that perfunctory clarification that their action has nothing to do with
the artistic merit of the film. And it is no longer the case that the governments are unwilling
to resist pressure from extremist groups such as the Karni Sena. Chief Ministers now are
actually rallying opinion against the film to whip up caste and religious anxieties.

Yogi Adityanath of Uttar Pradesh has forged an absurd equivalence between “those giving
death threats” and Sanjay Leela Bhansali, the film’s director, for “hurting public sentiments”.
Vijay Rupani in Gujarat has taken a cue from Shivraj Singh Chouhan in Madhya Pradesh and
called for a ban. This is in complete disregard of the Supreme Court judgment in S.
Rangarajan v. P. Jagjivan Ram that the state cannot cite concerns about a “hostile audience”
in curbing freedom of expression. Vasundhara Raje of Rajasthan, in fact, has argued that the
“censor board” must go beyond just certifying a film, and should be mindful of the possible
results after its release. And Amarinder Singh in Punjab has said he opposes a ban but
“cinematic licence” cannot extend to twisting “historical facts”. The fact that these open
appeals against cinematic expression are going mostly unchallenged across the political
spectrum carries dark forebodings. The issue here is no longer Padmavati, its artistic merit or
the factuality or otherwise of multiple retellings of the narrative. What is of real concern is
the spectacle of state functionaries ignoring their constitutional responsibility in upholding
free expression, and placing themselves alongside those out to intimidate, and release
sectarian furies.
EDITORIAL

Going universal — On Karnataka's universal health


coverage
NOVEMBER 24, 2017 00:15 IST
UPDATED: NOVEMBER 23, 2017 23:35 IST

Karnataka does well to finalise the road map to ensure universal health coverage

K arnataka’s move to amend the law governing private medical establishments is a


logical step in its plan to provide universal health coverage in the State. There can be
a debate on how individual aspects of medical services are best regulated, but laying down
standards, containing treatment costs, mandating transparency and creating a binding
charter that empowers patients are all basic components of healthcare reform. The State
government has wisely dropped the clause on imprisonment for medical negligence in the
final draft of the amendment Bill, avoiding a possible delay in broadening the scope of the
Karnataka Private Medical Establishments Act, 2007. There is a need, of course, to ensure
parity in services offered by government and private institutions, and end the neglect of
public facilities especially in rural areas. The transition to universal health access, provided
free at the point of delivery, must be a national priority as it is the key Sustainable
Development Goal relating to health to be achieved by 2030. The UPA government dropped
the ball midway, although it had a report from an expert group of the Planning
Commission in 2011 proposing a road map for universal coverage. Karnataka is pursuing
needed reform in some of the areas covered by the expert panel, notably on containing the
cost curve in establishments that operate for profit and where patients with state-
supported insurance get treated.
The task before Karnataka now is to come up with an essential health package consisting of
treatments available to all and to devise ways to charge users based on the ability to pay.
Capping costs for those who use such facilities is important, given that out-of-pocket
expenditure on health in India is extremely high. Regulation of prices for some drugs may
have had a moderating effect, but much work remains to be done to streamline processes
to achieve centralised procurement and free distribution of essential medicines to all.
Karnataka’s decision to set up a regulator for government hospitals is a response to the
criticism that nothing is being done to raise standards in these institutions and bring in
accountability. Ideally, all health institutions participating in a universal access
programme should be governed by common regulations, for which national, State and
district-level authorities are the answer. Such a comprehensive approach can eliminate
fragmentation of functions. Also, the public health approach at the primary level should
not be lost sight of, while focussing on reform of hospital-based care. National schemes
aimed at reducing the burden of infectious and non-communicable diseases, and
improving the health of women and children, should continue to receive top priority.
Repatriation - the return of someone to their own country.
AND
the sending of money back to one's own country.

EDITORIAL

The China plan — On Myanmar-Bangladesh deal on


Rohingya Traction - the extent to which an idea, product, etc. gains popularity or acceptance
AND
NOVEMBER 25, 2017 00:02 IST
UPDATED: NOVEMBER 25, 2017 00:10 IST
the grip of a tyre on a road or a wheel on a rail.

The devil will be in the detail of the Myanmar-Bangladesh deal on Rohingya


repatriation
see Annex - 1

T he agreement reached between Myanmar and Bangladesh to repatriate Rohingya


refugees suggests that the Chinese proposal has found some traction as a solution to
the crisis. It has been sealed after a three-month military operation by Myanmar in
Rakhine, which resulted in around 600,000 Rohingya fleeing the province to Bangladesh,
leading to a humanitarian crisis and a war of words between Dhaka and Naypyidaw. It is
against this background that China stepped in with its three-point plan. Earlier this
month, Chinese Foreign Minister Wang Yi travelled to Bangladesh and Myanmar with the
proposal; Beijing later claimed both countries had accepted it. Under the plan, Myanmar
and Bangladesh were to hold bilateral talks and reach a repatriation agreement – which has
been achieved. However, the first step in Beijing’s approach – which involved a declaration
of ceasefire in Rakhine to halt further displacement and bringing immediate relief to the
state’s devastated Rohingya – has not taken effect. If this were to happen, the third part of
the proposal will presumably take effect, with China providing economic assistance for the
development of the Rakhine region as part of a long-term solution.

China, which has historically been wary of stepping into domestic conflicts in other
countries, is being proactive in this case. Its own interest is at stake. Beijing enjoys good
relations with both Bangladesh and Myanmar; also, Rakhine is an important link in its Belt
and Road Initiative. China is building a $7.3 billion deep-water port in the province and has
invested $2.45 billion to build an oil and gas pipeline connecting coastal Rakhine to
Yunnan. China has put pressure on Myanmar because a protracted conflict in Rakhine will
be decidedly against Beijing’s economic interests. The signing of a repatriation deal
suggests this pressure tactic is working. But details of the agreement, including the
number of Rohingya who will be sent back, and the timeline, have not been revealed. It is
also not clear whether the refugees themselves want to go back to a place they had fled in
such perilous circumstances. Or in the event they do, where they will be resettled. From
the details of the plan it is clear that China sees the Rohingya crisis as an economic
problem, given that its solution is centred on development. While economic assistance is
essential, the real problem is arguably deeply political, and there needs to be an
accompanying political solution. Any proposal can only make limited headway unless
Myanmar is willing to roll back the institutional barriers that render Rohingya second-
class people. Unless they are accepted as equal citizens, there is unlikely to be a long-term
solution to the Rakhine unrest.
EDITORIAL

A symbolic victory — On the Two Leaves to EPS-OPS camp


NOVEMBER 25, 2017 00:02 IST
UPDATED: NOVEMBER 25, 2017 00:08 IST
zilch - nothing
Without popular support, the AIADMK will gain zilch by winning back its election
symbol

W hat brings people together is not always enough to keep them together. The struggle
for the Two Leaves election symbol may have encouraged the two factions of the All
India Anna Dravida Munnetra Kazhagam to come together, but the allocation of the symbol
by the Election Commission is not likely to make the prospects of their staying together any
greater. While the O. Panneerselvam group formed a separate faction as a protest against the
domineering influence of the Sasikala family in the party, the Edappadi K. Palaniswami group
distanced itself from the Sasikala family as a survival tactic to seek greater political legitimacy.
Both camps have retained their separate identities after the merger. Therefore, the allocation
of the symbol risks accentuating the internal struggle for posts and positions within the party.
While another split in the near future is unlikely, the competing claims for power and
influence by the two factions could put the party under renewed stress. But what the
allocation of the symbol does for the ruling combine is to give it an advantage over the
Sasikala faction, represented by T.T.V. Dhinakaran, in the R.K. Nagar by-election. With the help
of Two Leaves, the camp of ‘EPS and OPS’ might be able to beat back the challenge posed by
Mr. Dhinakaran, who has already declared his intention to contest the election for the seat.
The EC was faced with a straightforward issue in deciding the symbol case. The merged
factions commanded the support of a majority of the members of Parliament and State
legislature and the organisational wings. True, even at the time the case first came up before
the EC, the EPS faction, which at that time had the benefaction of the Sasikala family, enjoyed
the support of a majority of the party’s members. But with the R.K. Nagar by-election in sight
(it was subsequently deferred after instances of voter bribery came to light), the EC had taken
the safest option of freezing the symbol and the name of the party. With the symbol case out of
the way, the ruling AIADMK combine can once again concentrate on fighting the Dravida
Munnetra Kazhagam, its long-time rival. Unlike what they did in the battle with Mr.
Dhinakaran, Chief Minister Palaniswami and Deputy Chief Minister Panneerselvam cannot
hope to project the malevolence of Sasikala as an issue for fearmongering in the contest with
the DMK. The R.K. Nagar by-election will also be the first electoral test for the State
government, which needs to erase the popular impression that it is hurtling directionless
without a pilot. A victory for the EPS-OPS grouping could go a long way in establishing the
political legitimacy of a government that is still running on the mandate given to Jayalalithaa.
Equally, an adverse result in this by-election could undermine the government, bringing it
under even greater pressure from inside as well as outside.
Annex - 1

INTERNATIONAL

Myanmar, Bangladesh sign agreement on Rohingya


Muslims

Haroon Habib
BANGKOK:, NOVEMBER 23, 2017 20:47 IST
UPDATED: NOVEMBER 23, 2017 21:21 IST

Under the deal, the repatriation process is expected to begin in two months.

Bangladesh and Myanmar have signed a memorandum of understanding on Thursday on


the return of Rohingya people who fled the Rakhine state in the wake of a military
crackdown.

The deal was signed by Bangladesh Foreign Minister A.H. Mahmud Ali and Myanmar State
Counsellor Aung San Suu Kyi in Myanmar’s capital Naypyidaw. At least 600,000 Rohingya
people have fled Myanmar to the neighbouring Bangladesh since the army started an
operation in August following an attack by Rohingya militants.

Under the deal, the repatriation process is expected to begin in two months, diplomatic
sources in Dhaka told The Hindu.

Primary step
“This is a primary step. [They] will take back [Rohingya]. Now we have to start working,”
Foreign Minister Ali told a Bangladesh TV channel. “We will give details of the deal once we
return to Dhaka.”

Asked when the repatriation will start, the Minister said: "We have to start the process. The
houses there have been torched... levelled. They need to be rebuilt.” “We are ready to take
them back as soon as possible after Bangladesh sends the forms back to us,” said Myint
Kyaing, a permanent secretary at Myanmar’s Ministry of Labour, referring to the
registration forms the Rohingya must fill in with personal details.
Just before signing the deal, Prime Minister Sheikh Hasina renewed her call to Myanmar to
immediately start the repatriation of Rohingya. "We're continuing our bilateral talks with
Myanmar so that these Myanmar nationals  could return to their country... ," she said.
Diplomatic sources said Bangladesh wanted a time frame for the beginning and end of
repatriation which Myanmar did not agree to. Dhaka also sought the involvement of UN
agencies in the verification process, which was also rejected by the other side.

"We've agreed on many things though our expectation is not met fully. It's not possible in
any negotiations," a senior Bangladesh official told a Bangladesh news agency.

Joint working group


The two countries, however, agreed to form a joint working group at the foreign-secretary
level to start the repatriation process.
Bangladesh Foreign Secretary M. Shahidul Haque, the country’s envoy to Myanmar M.
Sufiur Rahman and representatives from the Home Ministry and the Prime Minister's
Office also attended the meeting on Wednesday.

Ms. Suu Kyi's office called Thursday’s agreement a "win-win situation for both countries,"
saying the issue should be "resolved amicably through bilateral negotiations."
Rights groups have raised concerns about the process, including where the minority will be
resettled after hundreds of their villages were razed, and how their safety will be ensured
in a country where anti-Muslim sentiment is surging.

'Ethnic cleansing'
On Wednesday, the U.S., in what appeared to be a policy reversal, called the military
operation in Rakhine "ethnic cleansing” and threatened targeted sanctions against those
responsible for it.
“The situation in northern Rakhine state constitutes ethnic cleansing against the
Rohingya,” U.S. Secretary of State Rex Tillerson said in a statement.
The stateless Rohingya have been the target of communal violence and vicious anti-
Muslim sentiment in mainly Buddhist Myanmar for years.
They have also been systematically oppressed by the government, which stripped the
minority of citizenship and severely restricts their movement, as well as their access to
basic services.
INTERNATIONAL

‘Doubts rise over Rohingya repatriation agreement’

Haroon Habib
DHAKA, NOVEMBER 24, 2017 22:29 IST
UPDATED: NOVEMBER 24, 2017 22:31 IST

Experts and aid groups question implementation process

A day after Bangladesh and Myanmar announced a deal to repatriate Rohingya refugees back to the
Rakhine state, aid agencies, rights groups and experts raised doubts about the implementation of the
agreement.
According to the agreement signed in Naypyidaw, Bangladesh would start sending the Rohingya
refugees back to Myanmar in two months. But no time frame is given on when the repatriation will
be completed. At least 6,00,000 Rohingya fled Myanmar’s violence-hit Rakhine State to the
neighbouring Bangladesh over the past three months.
Professor C.R. Abrar of the Dhaka University’s International Relations Department said one should
be wary of the deal as Myanmar did not respect their earlier commitments on taking back Rohingya.

'Talk of return is premature'


Amnesty International’s director for refugee and migrant rights, Charmain Mohamed, said the UN
and the international community “have been completely sidelined” and the talk of return is
“premature” while the flow of Rohingya refugees to Bangladesh continues.
The UNCHR issued a statement on Friday, saying the repatriation should be in line with international
standards and voluntary.
Quibble - a slight objection or criticism, minor criticism, trivial objection, trivial complaint,
"the only quibble about this book is the price"
AND
argue or raise objections about a trivial matter.
"they are always quibbling about the amount they are prepared to pay"
EDITORIAL

Messy fix: the amended insolvency code


NOVEMBER 27, 2017 01:02 IST
UPDATED: NOVEMBER 26, 2017 23:02 IST
see Annex - 1
The amended insolvency code risks hurting the key aims of the original law

L ess than 12 months after the Insolvency and Bankruptcy Code came into force with the
goal of easing the resolution of corporate insolvency, the Central government has
passed an ordinance that significantly amends the original law. The aim of the changes is
clearly stated in the preamble: “...to strengthen further the insolvency resolution process, it
has been considered necessary to provide for prohibition of certain persons from submitting a
resolution plan, who, on account of their antecedents, may adversely impact the credibility of
the processes.” The ordinance then specifies the categories of persons who are deemed
ineligible to participate in resolving a corporate entity’s debt once it has been put under the
process of insolvency resolution by creditors. Here lies the nub. While there is no quibble
about the need to deny unscrupulous and wilful defaulters who have put banks and other
creditors to substantial financial hardship the opportunity to regain control of corporate
assets that have been put under resolution, the category of people barred is too broad and risks
the very objectives of the original code. It is germane to remember here that the IBC is not
intended to serve as a mere instrument of liquidation. Instead, it is to provide an enabling
legal framework for the “reorganisation and insolvency resolution of corporate persons... in a
time bound manner for maximisation of value of assets of such persons” and to promote
entrepreneurship, among other goals. Nub - the crux or central point of a matter.

By including promoters and those in management whose loan accounts are classified as non-
performing assets for one year or more, as well as any person disqualified to act as a director
under the Companies Act, the amendment risks becoming an instrument of blunt force that
hurts more than it helps. As policymakers and central bankers have often pointed out, not all
bad loans are a result of mala fide intent on the borrower’s part. Specifically, in cases where
companies have ended up struggling to service debt as a result of unpredictable external
factors that adversely impacted their operations and financials, barring the promoters of such
firms from a chance to restructure and turnaround the business, merely because the loans
have turned sour, is unfair to both the entrepreneur and the enterprise itself. For instance,
steel companies were among the worst hit in the wake of the global downturn in commodity
prices and depressed demand. It has been reported that the promoters of some of these debt-
laden steelmakers were considering participating in bids to restructure the debt and
businesses and hoping to run them again. By widening the scope and definition of those it
considers ineligible to participate in the resolution process and, worse, making the
amendments retrospective to cover even those cases already referred to the National
Company Law Tribunal, the Centre may have ended up, unintentionally, throwing the baby
out with the bathwater.
EDITORIAL

Desert storm: the chaos in Egypt


NOVEMBER 27, 2017 00:00 IST
UPDATED: NOVEMBER 26, 2017 22:21 IST

The chaos in the region makes Egypt’s counter-terror task even more challenging

T he murderous attack on Friday at a Sufi mosque in the Sinai Peninsula that killed at
least 305 people is a grim reminder of the threats Egypt faces from a stronger and
more brutish Islamist militancy. Over the past three years, groups operating from the Sinai
peninsula, particularly a local arm of the Islamic State, have carried out several terror
attacks. The ease with which dozens of militants, carrying the IS’s black flags, unleashed
the assault on the mosque in Bir al-Abed, surrounding it with vehicles and attacking
devotees with bombs and guns, has set alarm bells ringing in Cairo. This is the bloodiest
attack in modern Egypt’s history. President Abdel Fattah el-Sisi, the general who had
captured power through a coup in 2013 promising stability and security, has vowed to
respond with “brutal force”. General Sisi had made similar promises after terrorist strikes
in the past, including when a Coptic church in the mainland was bombed by the IS on the
Palm Sunday this year, killing at least 45 people. With the Bir al-Abed mosque attack, the
terrorists have now raised the stakes and also called into question General Sisi’s counter-
insurgency strategy.

The IS’s strategy in Egypt is similar to that in Syria and Iraq. The group is targeting
Christians, who make up about 10% of the Egyptian population, and minority sects within
Islam. It makes no secret of its plan to deepen the sectarian divisions in societies and then
exploit these divisions to win over hardline Sunni segments. Egypt’s Sinai, a region
historically neglected by Cairo and with a vast terrain of desert, mountain and long coasts,
is an ideal operational base for the IS. For the same reasons, counter-insurgency in the
Sinai is a challenging task even for a formidable military force. The Egyptian military has
also been under strain on account of regional developments since the fall of Muammar
Qadhafi’s regime in Libya in 2011 and the resulting chaos in North Africa. The black market
trade in weapons from Qadhafi-era depots has strengthened militant groups, including
those in the Sinai. Besides, it is suspected that following the more recent collapse of IS
networks in Iraq and Syria, Egyptian Islamists who were fighting in those countries have
returned home and joined local networks. This poses a daunting challenge to President
Sisi. The battle before Cairo is not just a counter-insurgency mission. It has to defeat the
militants and disrupt the supply of weapons, which is a huge challenge given the difficult
terrain of the Sinai. But the Egyptian government also needs to take steps to address the
long-term grievances of the Sinai’s population and deny militants local sympathy or
support.
Annex - 1
EXPLAINER ECONOMY

Nitty-gritty of bankruptcy code


Sanjay Vijayakumar
CHENNAI, JUNE 18, 2017 20:54 IST
UPDATED: JUNE 18, 2017 22:47 IST

Last week, Reserve Bank of India said its internal advisory committee (IAC) had identified 12 accounts,
which account for 25% of non-performing assets of the Indian banking system for immediate resolution
under the Insolvency and Bankruptcy Code (IBC).
The gross bad debt in the banking system as on March was ₹7.11 lakh crore, which means the 12 accounts
contribute to about ₹1.78 lakh crore.

What does bankruptcy mean?


A company is bankrupt if it is unable to repay debts to its creditors (banks, suppliers etc). The inability to
repay debts by some of the Indian firms has resulted in a huge pile of non-performing assets for the
banking system. A mechanism to free up the money stuck as bad loans is one of the key for the banking
system. IBC is seen as one such.

Which are the most stressed sectors having a problem of non-performing assets?
While the names of the 12 accounts which have been referred have not been made public officially, the
RBI had earlier hinted that stress was coming from sectors such as power, telecom, steel, textiles and
aviation. Union Finance Minister Arun Jaitley later said the number of highly stressed accounts would be
about 40-50.

How the RBI came into the picture of referring accounts for resolution under IBC?
The government had recently amended the RBI Act, which gave powers to the central bank to direct
banks to take punitive action against individual accounts under IBC.

How does the process work under IBC?


To being with any creditor including banks can start bankruptcy proceedings against defaulters by filing
a petition with the National Company Law Tribunal.

After that, an insolvency professional with significant powers is appointed to take control of the
defaulting company and assist the process.
A creditors committee is formed to represent the interest of lenders and any other party that have been
affected due to the default by the company.
The committee should come up with a resolution plan (which may include selling off defaulted loans or
liquidate the company outright). The resolution would require a nod from 75% of the creditors on the
committee.
The insolvency professional gets 180 days to come up with a feasible solution on the default issue. The
timeline can be extended by another 90 days. If no solution is found within 270 days, a liquidator is
appointed. The company can also opt for voluntary liquidation by a special resolution in a general
meeting.

Does IBC resolve the bad assets crisis of the banks?


Only time will tell. The proceedings under IBC are at a nascent and untested stage in India.
EXPLAINER ECONOMY

What do amendments to IBC mean to promoters?

Sanjay Vijayakumar
CHENNAI, NOVEMBER 26, 2017 21:46 IST
UPDATED: NOVEMBER 27, 2017 07:29 IST

Last week, India amended the Insolvency and Bankruptcy Code (IBC) 2016 through an ordinance
that received the President’s nod. Here’s a lowdown:

What is bankruptcy? What is the IBC’s intent?


A company is bankrupt if it is unable to repay debts to its creditors (banks, suppliers etc). The
inability to repay debts by some  Indian firms has resulted in a huge pile of non-performing assets
for the banking system.
The Indian government had introduced the IBC as a method to tackle the issue. Under the Code, a
resolution has to be found for the indebted company within 270 days. Otherwise, a liquidator is
appointed. The company can also opt for voluntary liquidation by a special resolution in a general
meeting.

How has IBC progressed? Why was the amendment needed?


According to Manish Aggarwal, partner and head — resolutions, special situations group, KPMG
in India, the resolution to  stressed assets picked up steam under IBC and investors started
warming up to the huge opportunity. The question was whether  existing sponsors / promoters of
corporate debtors (ie the company with debt and under the insolvency proceedings) can directly
or indirectly acquire stake in these firms post acceptance of a resolution plan which would have
entailed substantial discount to outstanding loans of lenders.
He pointed out that the key questions were — can promoters seek a huge cut from lenders and be
back in the business? Does this provide a level playing field to other prospective bidders?
Does this send the right political and economic signals? The government took note of all these
concerns expressed by investors, and that’s what led to the recent (amendment) ordinance.

What does the  recent amendment do?


Nishit Dhruva, managing partner, MDP & Partners, a full-service law firm, said with the present
amendment promoters/directors and guarantors, along with their related parties of the corporate
debtor or company undergoing an insolvency resolution process, are prohibited or debarred from
filing resolution plans.
This was needed to prevent the back-door entry of errant promoters into the company, thereby
taking advantage of the haircuts and thus getting a premium for their own wrongdoings, he
added.

What are the key elements of the amendment?


The amendment has inserted two new sections in the insolvency code — Section 29A, which
provides for persons ineligible to be a Resolution Applicant; and Section 235A, which provides for
punishment for contravention of the provisions where no specific penalty or punishment is
provided.
Section 29A says  those ineligible to be a Resolution Applicant include:
Wilful defaulters (ie, those associated with non-performing assets, or are habitually non-
compliant and, therefore, are likely to be a risk to successful resolution of insolvency of a
company);
Those whose accounts are classified as Non-Performing Assets (NPAs) for one year or more and are
unable to settle overdue amounts including interest and charges relating to the account before
submission of the Resolution Plan;
Those who have executed an enforceable guarantee in favour of a creditor, in respect of a
corporate debtor undergoing a Corporate Insolvency Resolution Process or Liquidation Process
under the Code and others connected to the above, such as promoters or those in management
control of the Resolution Applicant, or those who will be promoters or in management control of
corporate debtor during the implementation of the Plan, the holding company, subsidiary
company, associate company or related party of the above persons.
Section 235A provides for punishment for contravention of the provisions where no specific
penalty or punishment is provided. The punishment is fine which shall not be less than one lakh
rupees but which may extend to two crore rupees.

What the amendment means in terms of NPA resolution? What are the key
challenges?
Mr. Dhurva points out that key challenge would be to invite expression of interests and
resolution plans from applicants who are not related to the Corporate Debtor after conducting
due diligence about the creditworthiness of such buyers. KPMG’s Aggarwal says even though
there have been concerns about the amendment, it ensures that errant promoters don’t end up
getting the business back with all sacrifices being made by the lenders. As situation evolves, and
experience manifests, these clauses can be further tweaked, however, there was a need to send a
strong message for first few large cases that government means business, he added.
EDITORIAL

Sink your differences: on the executive-judiciary relationship


NOVEMBER 28, 2017 00:02 IST
UPDATED: NOVEMBER 28, 2017 08:57 IST

A touch of pragmatism is what the judiciary and the executive need at this juncture

I t is disconcerting that differences between the executive and the judiciary are emerging often in the
public domain these days. By raising the question whether the judiciary does not trust the Prime
Minister to make fair judicial appointments, and harping on the need to maintain the balance of power
between the executive and the judiciary, representatives of the Union government have risked the
impression that they are putting the judiciary on the defensive. Read between the lines and the
executive’s profound dissatisfaction with the state of play in relations between the two wings is evident.
Union Law Minister Ravi Shankar Prasad is undoubtedly entitled to hold the view that the Supreme
Court’s 2015 verdict striking down the law creating the National Judicial Appointments Commission
(NJAC) reveals the judiciary’s distrust in the Prime Minister and the Law Minister. His question whether
an audit is needed to determine what has been lost or gained since the collegium system was created in
1993 is not without merit. However, it is debatable whether these issues should have been raised in
public, that too in the presence of the Chief Justice of India and his fraternity. Chief Justice Dipak Misra
seemed coerced into responding that the judiciary reposes the same trust that the Constituent Assembly
had in the Prime Minister, and that the judiciary indeed recognised and respected the separation of
powers enshrined in the Constitution. There was really no need for such a public affirmation of first
principles in a democracy.

However, it does not mean that major concerns over whether there is real separation of powers, whether
public interest litigation has become an interstitial space in which judges give policy directives, and
whether the country needs a better system than the present one in which judges appoint judges should
be brushed aside. The present collegium system is flawed and lacks transparency, and there is a clear need
to have a better and more credible process in making judicial appointments. It is clear that differences
over formulating a fresh Memorandum of Procedure for appointments are casting a shadow on the
relationship. It is best if both sides take a pragmatic view of the situation and sink their differences on
the new procedure, even if it involves giving up a point or two that they are clinging to. For a start, they
could both disclose the exact points on which the two sides differ so that independent experts will also
have a chance to contribute to the debate. If it is the right to veto a recommendation that the
government wants on some limited grounds, the Collegium must not be averse to considering it.
Resolution of this matter brooks no further delay.
Brooks - (noun) small river, streamlet, rivulet, rill
- (verb) allow / tolerate
EDITORIAL

Road to chaos: Pakistan's face-off with extremists


NOVEMBER 28, 2017 00:02 IST
UPDATED: NOVEMBER 27, 2017 22:43 IST

Pakistan’s government stands undermined at the end of a long face-off with extremists

T he long stand-off between the authorities and Islamist protesters on the edges of Islamabad, once again,
has exposed the vulnerability of the Pakistan government while dealing with extremist groups. The
protesters, led by a little-known group, Tehreek-i-Labaik Ya Rasool Allah (TLY) paralysed the city by blocking
the main road from Rawalpindi for three weeks, demanding the resignation of Law Minister Zahid Hamid.
The demonstrations were purportedly a response to a proposed change in the oath for lawmakers that
moderated the mention of the Prophet. Islamist groups, with Khadim Hussain Rizvi, the chief of Tehreek-i-
Labaik, taking the lead, alleged that this amounted to blasphemy. Prime Minister Shahid Khaqan Abbasi
appeared to have no idea how to find a way out. He withdrew the proposed amendment in the wake of
Islamist protests, hoping that it would pacify them. When the crowd started blocking the road to Islamabad,
the government first ignored it, clearly underestimating Tehreek-i-Labaik’s capacity to sustain the
demonstrations. When the protesters persisted, the authorities offered to hold talks. When that failed and its
handling of the crisis came under judicial criticism, the government decided to use force, resulting in violent
clashes between security personnel and protesters on Saturday, in which at least six people were killed and
over 100 injured. Even then, the civilian leadership had to seek the Army’s help to broker a deal with the
protesters. It was after Mr. Hamid resigned as Law Minister that Mr. Rizvi finally asked his supporters to
disperse.

The way the government handled the crisis and its final capitulation, under military mediation, to the
protesters’ ultimatum clearly point to the continuing erosion of executive authority. The Pakistan Muslim
League (Nawaz) government, which suffered a massive setback in July when Prime Minister Nawaz Sharif was
disqualified, is yet to recover its equilibrium. Mr. Abbasi must take part of the blame for what happened in
Islamabad. He failed to act swiftly when the crisis broke. Instead, he waited and watched as the capital city
was paralysed. By the time things came to a head, the military played its hand not just to help resolve the
crisis but also to project the civilian leadership as being clueless. An equally worrying sign for Pakistan is that
a political upstart with extremist views has showed it can hold the government to ransom. It is not clear
whether Tehreek-i-Labaik has the support of the ruling party’s rivals. But the pace at which thousands of
supporters were mobilised in Islamabad against the government reinforces the sensitivity of the blasphemy
issue in the country’s politics. The growing street power of Islamist fringe groups, the reluctance of the
government to take them on and the mediatory role the Army plays at a time when divisions among political
parties run deep, all confirm the risk of instability in Pakistan.
EDITORIAL

A new phase? Nepal's historic vote


NOVEMBER 29, 2017 00:00 IST
UPDATED: NOVEMBER 28, 2017 23:10 IST

High hopes ride on Nepal’s first parliamentary polls under its new Constitution

N epal voted on Sunday in the first phase of parliamentary elections under its new Constitution of 2015
and with the electoral battle lines redrawn in a recently altered political landscape. The first round was
mostly concentrated in the upper hill regions, with the rest of the country scheduled to vote on December 7.
Uniquely for Nepal’s highly fragmented party politics, these elections witness a direct battle between two
fronts. The first, the “democratic alliance”, is led by the Nepali Congress and includes the former Panchayat
parties and Madhesi groups; the second, the “left alliance”, brings together, in a surprise agreement
hammered out in early October, the Communist Party of Nepal (Unified Marxist-Leninist) and the
Communist Party of Nepal (Maoist Centre). On the face of it, this is an electoral battle between the forces
belonging to the centre-right and the centre-left, but to reduce it to an ideological battle would be
misleading. The NC, the UML and the Maoists have been in power at various points in the last decade and
have done little to distinguish themselves by way of implementing socio-economic policies or in terms of
performance. The Constitution-writing process was completed in far too many fits and starts largely due to
short-sighted battles for one-upmanship among these parties in Kathmandu since 2008. Populism
dominates the ideological positions of the major parties and the politics of patronage has governed their
engagement with the people. The consequence of this has been lack of movement on key issues facing the
underdeveloped nation-state.

One such issue that dominated the political discourse in the last half-decade has been the need for
decentralisation and representation of the marginalised communities. Madhesis and janajatis (tribals) have
continued to claim that their demands for adequate state restructuring and federalism were not met in the
new Constitution. The new electoral alliances have subsumed such differences — with the Maoists, who were
willing to grant such demands for amendments to the new Constitution, joining hands with the UML, which
is strongly opposed to any concessions. Similarly, the Naya Shakti Party, a fledgling socialist party, has broken
away from the left alliance and aligned itself with the NC despite significant differences over state-
restructuring and other issues. The political flux has meant that vital issues of economic development have
remained largely unaddressed, belying hopes that Nepal’s transition from a monarchy to a republic would
foreground the people’s concerns. The clear contest, for the first time, between two pre-poll alliances may
finally give an ideological and political shape to the republican polity as a battle of ideas, and mark a break
from the years of squabbling over positions of power in Kathmandu. Clearly, the voters are not cynical: the
turnout in the first phase on November 26 was estimated to be 65%. The politicians must now deliver.
Bely - to give the false impression of
Foreground (verb) - to make something the most important or prominent feature.
EDITORIAL

Freedom first: On SC's order in Hadiya case


NOVEMBER 29, 2017 00:02 IST
UPDATED: NOVEMBER 28, 2017 23:23 IST

The Supreme Court’s order allowing Hadiya freedom of movement was long overdue

B y freeing Hadiya, a 25-year-old from Kerala who converted to Islam, from her parents’ custody,
the Supreme Court has protected her freedom to choose her religion and her freedom of movement.
Such an order was long overdue, considering that she has been living with her parents against her
will and wished to be allowed to be with her husband and practise her religion. It is a matter of
satisfaction that the court has now emphasised her personal liberty rather than curtailing her
freedom on a totally unrelated ground, namely that she was likely to be radicalised. Hadiya, whose
original name was Akhila, had been practising Islam for nearly two years, and had to face judicial
proceedings twice at the instance of her father, who alleged that her conversion was involuntary and
part of a ploy by communal groups to radicalise her and send her abroad to join the Islamic State. The
court has now allowed Hadiya to go to Salem in Tamil Nadu and complete her internship as part of a
homoeopathy course. It is somewhat ironic that it took nearly a year and a long spell of judicially
ordered confinement for Hadiya to opt for the same course of action that was offered to her by the
Kerala High Court in December 2016. The High Court had been all set to pass orders to enable her to
go to Salem for the same purpose, when on December 21, 2016, she disclosed that a couple of days
earlier she had married a man called Shafin Jahan. The High Court then annulled her marriage,
calling it a sham and a ruse to scuttle the proceedings.

Whatever the truth about her marriage, there were serious reservations about the High Court’s
observations to the effect that a woman’s marriage requires the involvement of her parents and that
even if she had attained the age of majority she was still at a “vulnerable age”. The ease with which the
freedom of an adult woman to make life decisions could be curtailed by judicial orders left many
aghast. It is doubtful if similar remarks would have been made if the convert was a man. From this
perspective, the Supreme Court’s order is to be welcomed as it gives primacy to a woman’s freedom to
choose her manner of living. The Supreme Court has also made it clear that the National
Investigation Agency can continue its ongoing probe. This preserves the scope for a lawful
investigation into the suspicion that there is an organised campaign to recruit young people for
overseas operations. Any probe into this phenomenon need not be at the cost of individual liberty.
The possibility of indoctrination cannot be a reason for undermining personal autonomy.
EDITORIAL

Eliminate torture: the need for a law to prevent custodial cruelty


NOVEMBER 30, 2017 00:02 IST
UPDATED: NOVEMBER 29, 2017 23:23 IST

A standalone law to prevent custodial cruelty is in India’s interests

E nacting a law prohibiting torture is both a moral imperative and a pragmatic necessity. The Union
government has informed the Supreme Court that it is seriously considering the 273rd Report of the Law
Commission, which has recommended that India ratify the United Nations Convention against Torture
and pass a law to prevent torture and punish its perpetrators. A few months ago, the court had sought the
Centre’s response to a petition filed in public interest by former Union Law Minister Ashwani Kumar,
who complained about the delay in India ratifying the UN Convention, which it had signed in 1997. The
petition had also favoured a standalone legislation to prohibit torture. The court disposed of the matter
without any direction after being informed that the matter was under serious consideration. The Centre
should now act on its own with a sense of urgency. There can be no reason to further delay legislative
measures to eliminate all forms of torture and other cruel, inhuman and degrading forms of treatment.
At an earlier hearing, the court had itself highlighted why a standalone law is needed. India has made
many requests for extradition of offenders from other countries, and the absence of an anti-torture law
may prevent these countries from acceding to India’s requests. Earlier this month, extradition courts in
the United Kingdom refused to send two persons to India to face trial, one of them on the ground that
there was “no effective system of protection from torture in the receiving state”. Conditions in India’s
prisons, especially the chronic problem of over-crowding, are a reason for the country’s extradition
requests failing.

Few would disagree that ratifying the UN Convention and following it up with a domestic law against
torture will not only be in the national interest but also have positive implications for the protection of
human rights. Custodial violence continues to be prevalent in the country. The recent example of a bus
conductor being forced to confess to murdering a schoolchild is a pointer to the use of torture as an
investigative tool among policemen. The Prevention of Torture Bill was passed by the Lok Sabha in 2010
to address the problem, but it lapsed after it was referred to a Select Committee in the Rajya Sabha. The
Law Commission, to which the question was referred in July this year, produced a report within three
months. It also submitted a draft Bill for the government’s consideration. The government should accept
the recommendations without delay as it not only provides a penal framework for punishing public
servants who inflict torture, but also lays down that just compensation be paid to victims.
EDITORIAL

A neutral Internet
NOVEMBER 30, 2017 00:02 IST
UPDATED: NOVEMBER 29, 2017 23:24 IST

TRAI recommendations for Net neutrality must be urgently acted upon

T he struggle to keep the Internet freely accessible to all got a welcome shot in the arm on Tuesday. The
Telecom Regulatory Authority of India (TRAI) finally came out with clear guidelines in favour of Net
neutrality that are consistent with its earlier stand on Facebook’s Free Basics proposal. After consultation
papers issued in May 2016 and this January, the regulator reiterated that there cannot be discriminatory
treatment of websites on the Internet by service providers. In particular, TRAI warned providers against the
practice of blocking certain websites and tinkering with content speeds. This, in a nutshell, means that
service providers such as telecom companies cannot stand in the way of a consumer’s access to content that
would otherwise be provided to her without any undue hindrance. They cannot, for instance, charge
consumers for access to certain content, or receive payment from websites promising greater promotion of
their product over the rest. Quite notably, TRAI’s decision comes in the wake of international focus on the U.S.
Federal Communications Commission’s decision to scrap regulations on service providers imposed during
the Obama administration. While batting for the right to an open Internet, however, TRAI has been careful to
allow some exceptions that allow companies to discriminate between content if it helps them regulate the
flow of traffic or offer “specialised services”.

While TRAI’s new guidelines will help the cause of building the Internet as a public platform with open
access to all, the concerns of service providers should not be dismissed altogether. The Internet has spread all
over the world, so widely that many believe it is now an essential good. But the infrastructure that serves as
the backbone of the Internet has not come without huge investments by private service providers. So any
regulation that severely restricts the ability of companies to earn sufficient returns on investment will only
come at the cost of the welfare of the public. In this connection, TRAI has been open to adopting a nuanced
view that differentiates between various forms of content instead of imposing a blanket ban on all forms of
price differentiation. The new policy, for instance, will still allow companies to justify the costs incurred in
providing niche content to consumers. At the same time, TRAI’s measured response is likely to effectively
address the problem of anti-competitive practices adopted by certain providers. Interestingly, it has left it,
with important caveats, to the government to decide on services that count as “specialised” and deserve
exceptional treatment by regulators. To this end, a proper mechanism needs to be instituted to make sure
that the exceptions are not used as loopholes by the big Internet players. Policymakers will also need to think
hard about creating an appropriate legal framework to prevent the capture of regulation by special interests.

Niche (adjective) - products, services, or interests that appeal to a


small, specialized section of the population.

Das könnte Ihnen auch gefallen