Nov/30/2011

Parliament stalled over FDI issue

Deadlock over government’s decision to allow foreign direct investment in retail paralysed Parliament for the fourth day on Wednesday, with a united opposition joined by United Progressive Alliance partners Trinamool Congress and the Dravida Munnetra Kazhagam, disrupting proceedings demanding a rollback of the controversial decision.

With formal and back-channel talks between government leaders and their opposition counterparts failing to make any breakthrough, both Houses of Parliament were adjourned within minutes of assembly and then for the day.

The Winter Session, which began last Tuesday, has not transacted virtually any business, as logjam over several issues, including price rise, corruption and black money, demand for a separate Telangana and safety of the Mullaperiyar dam, continued through seven working days.

The Opposition have made it clear that they would not allow Parliament to function till the government heeds to their demands — either a rollback of the decision to allow 51 per cent FDI in multi-brand retail and 100 per cent FDI in single-brand retail or acceptance of their adjournment motion on the issue under rules which entail voting.

After the first adjournment during Question Hour, both Lok Sabha and Rajya Sabha were adjourned till tomorrow amid uproar created by vociferous opposition members and MPs of the Trinamool Congress and the DMK raising slogans, with many of them moving into the Well.

Some members of the ruling Congress as also of the Telugu Desam Party in the Lok Sabha waved placards demanding creation of a separate Telangana State.

Trinamool members were seen waving placards and raising slogans against government’s FDI decision, while TDP, Communist Party of India (Marxist) and Shiv Sena members rushed to the well raising slogans.

In the Rajya Sabha, the Bharatiya Janata Party, the Bahujan Samaj Party, the Janata Dal (United) and the All India Anna Dravida Munnetra Kazhagam members, along with those of Trinamool Congress were on their feet soon after the House reassembled at noon.

Members of the BSP, the Left and the BJP raised slogans demanding reversal of the FDI decision as some of them trooped into the Well.

Members from Kerala, cutting across party lines, also moved into aisles raising the issue of safety of the Mullaperiyar dam in the State.

Sensing their mood, Deputy Chairman K. Rehman Khan adjourned the House for the day immediately after papers were laid in the House.

Earlier too, both Houses witnessed similar scenes forcing their adjournment till noon.

No sooner than Speaker Meira Kumar called for the Question Hour in the Lok Sabha, signalling a start to the day’s proceedings, members rushed to the aisles and the well raising various demands.

Chairman Hamid Ansari adjourned the proceedings in the Rajya Sabha till noon as noisy scene prevailed when the House met for the day.

Parliament has not transacted any significant business since the Winter Session began on November 22.

The private sector's turn to deliver

The government's decision to set aside a 20 per cent quota for SC/ST vendors in its purchases, if accepted by every sector on a wider scale, has the potential to makegrowth pro-poor and inclusive.

The Central government has finally announced a policy reserving 20 per cent of its purchases for micro and small enterprises run by entrepreneurs belonging to the Scheduled Castes and the Scheduled Tribes. The new procurement policy will cover 358 items to be purchased by Central ministries, departments and public sector undertakings. The 20 per cent purchase norm will become mandatory after three years. This is in line with the policies that have been pursued for some time by Mukul Wasnik, Minister of Social Justice and Empowerment; the final approval came from the Prime Minister's Office.

This is as historic a decision as the provision of reservation in public employment, education and politics. Dr. B.R. Ambedkar first argued for compensatory policies in the private sector, in a representation to the Southbrough Committee on January 25, 1919. He shared with the members of the committee the painful incident of an ‘untouchable' Mahar woman who was taken to the police court for selling watermelons, because she had violated the customary rules which prohibited ‘untouchables' from doing business: they were supposed to undertake only the so-called polluting occupations. The demand for policies to compensate the ‘untouchables' for denial of poverty rights was repeated in a memorandum submitted to the Constituent Assembly in 1947: “Discrimination against citizens by the private employers in the factories and in commercial concerns on the grounds of race or creed or social status should be treated as an offence,” observed Dr. Ambedkar.

Although the situation has changed much since 1919, the consequences of denial of property rights continue to haunt Dalits — which is reflected in extremely low ownership of private enterprise by them. In 2010, a National Sample Survey exercise revealed that the percentage of self-employed households among the Scheduled Castes was only 14 in rural areas and 29 in urban areas, compared with 17 and 37 per cent for higher castes. The economic census of private enterprises for 2005 showed a similar pattern. The share of the Scheduled Tribes, the Scheduled Castes, the Other Backward Classes and the higher castes in total private enterprises was about 2, 6, 30, and 61 per cent respectively in the urban areas, while the figures were 6, 10, 40, and 45 per cent in the rural areas.

Thus, the graded inequality in the ownership of private enterprise continues despite the grant of equal property rights: the share of the Scheduled Castes and the Scheduled Tribes in total private enterprise has remained much less than their share in the population. Besides, the Scheduled Caste entrepreneurs and the businesses run by them have faced discrimination in accessing some inputs and services, if not all, that are necessary for the production and sale of goods and services. This is particularly the case for communities such as Valmikis, engaged in the sale of consumer goods such as milk, vegetables and similar products, leading to market failure caused by untouchability. It is in this background that the decision by the United Progressive Alliance government to set aside a 20 per cent quota in government purchases from SC/ST vendors assumes significance.

Limitations

The policy does have its limitations as procurement under the policy will cover only purchases made by Central ministries, departments and PSUs. Public enterprises account for only 5 per cent of the total enterprises in India. The remaining 95 per cent, private enterprises, are without any such obligation. The corporate sector has developed affirmative action policies on a voluntary basis and adopted a code of conduct; entrepreneurship development is one of the components of this policy. Associations of industries have recognised the role of market support for success in integrating marginalised communities in mainstream industry. The code for affirmative action policy talks about encouraging member-companies to make companies owned by those from the SC and ST communities a part of their supply-vendor chain.

However, the policy of market support through partnership with those from the SCs and the STs has not found favour with the companies. The Confederation of Indian Industry (CII) reports that a beginning has been made in this direction by only half-a-dozen companies. CII, Assocham, and FICCI, whose membership runs into thousands of companies, are way behind in accepting the market support policy in purchases from SC and ST vendors. It is time the private sector, which makes purchases worth millions of rupees each year, also accepted the government's procurement policy in such a manner that a majority of its member-companies are covered and join hands with the government in a spirit of partnership.

The government's initiative on procurement, if accepted by the private sector on a wider scale, has the potential to make growth pro-poor and inclusive. A very high proportion of enterprises run by the SCs and the STs are household-based, almost 80 per cent, much higher than the corresponding figure of 61 per cent for higher castes. With low capital and traditional techniques, earnings are low, and this results in high levels of poverty among the self-employed and casual labour engaged in them. In 2009-10, of the total rural Scheduled Caste self-employed households, about 24 per cent were poor, the ratio being 15 per cent for higher castes. The ratio of poor for urban Scheduled Caste self-employed households was 35, as against 20 per cent for higher castes. The percentage of self-employed poor among the Scheduled Tribes was more than 30 per cent. The pro-poor growth requires that the productivity and earnings of these enterprises are raised with necessary support from the government and the private sector. Providing market support through reservation in purchases is one way to transform this low-productivity and poverty-stricken sector into a high-productivity sector and to make growth inclusive of the poor.

But the goal of integration of the SC and ST businesses into the main supply chains may be realised only if the private sector also follows the government's policy in purchases for all member-companies. This will make growth pro-poor and help reduce poverty among the self-employed and the casual labour engaged in them.

Look East

The private sector can possibly do more. Instead of looking to the West, it will be useful to draw lessons from the East, particularly an experiment in Malaysia. The Malaysian government, through its affirmative action policy launched in the 1970s, managed to increase ownership in private enterprises for the discriminated group of Malaya from only 2 per cent in 1970 to 20 per cent in 1990. The government brought about a systematic redistribution of ownership of private capital in favour of discriminated groups in a period of two decades.

We have the responsibility to repay the social debt the nation owes to the ‘untouchables' for having denied them property rights and left them assetless for a pretty long period in history.

(Sukhadeo Thorat is Professor, Centre for the Study of Regional Development, Jawaharlal Nehru University, Delhi, and Chairman, Indian Council of Social Science Research. He is at thoratsukhadeo@yahoo.co.in)

Exercise ‘makes people eat better’

Here’s yet another reason why you should start doing workouts from tomorrow -- exercise really is the key to good health as it makes one eat better, says a new study.

It may seem obvious that getting the right amount of physical activity goes hand in hand with sensible eating. But now, researchers have found the relationship is more vital than previously thought.

A team, led by Dr Miguel Alonso of Harvard University, has found that taking more exercise actually triggers an improvement in diet quality.

“Physical exercise seems to encourage a healthy diet. In fact, when exercise is added to a weight-loss diet, treatment of obesity is more successful and the diet is adhered to in the long run,” the ‘Daily Express’ quoted Dr Alonso as saying.

Dr Alonso added that previous studies have also shown exercise is good for the brain -- making people more likely to resist the temptation of unhealthy food.

Regular exercise, he said, “increases the amount of grey matter”.

World temperatures maintain the heat of global warming

The U.N. weather office says world temperatures maintained a long-term upward trend and Arctic sea ice shrank to record low volumes this year.

The report by the International Meteorological Organization, released in Geneva and at the U.N. climate talks on Tuesday, provided a bleak backdrop to negotiators seeking ways to limit pollution blamed for global warming.

The report says 2011 was tied for the 10th hottest year since records began in 1850.

It says the 13 hottest years on the books all occurred in the last 15 years.

The extent of Arctic sea ice in 2011 was the second lowest on record, and its volume was the lowest.

The report came on the second day of the two-week conference in South Africa among 192 parties seeking agreement on future action to curb climate change.

Michael Jackson's doctor sentenced to four years

The doctor who was convicted in the overdose death of Michael Jackson was sentenced to the maximum four years in prison on Tuesday in a finale to the tormented saga of the King of Pop.

Dr. Conrad Murray was sentenced on Tuesday, three weeks after a jury convicted the cardiologist of involuntary manslaughter. The judge chastised him for a “horrific violation of trust” in caring for Jackson.

Prosecutors had urged the judge to sentence the doctor to the maximum, arguing his treatment of Jackson with a powerful anesthetic ended the life of the King of Pop and left his three children without a father.

Attorneys for the 58-year-old Murray argued that probation was a more appropriate sentence, given his lack of a criminal history and the fact he will lose his medical license.

Murray could serve half of the four years because of overcrowding in California jails.