Professor Vinod Anand

OUR country has been in a fix, because of the fact that, on the one hand, lowering of various interest rates (as a short-run way out) to control the rising inflation has gradually reduced the liquidity of money, and therefore, the demand for various goods and services, but, on the other hand, this remedy has also added to the recession in terms of lesser employment, and retrenchment of already employed persons in the various sectors of the economy. The dilemma is, therefore, linked with inflation and unemployment. When inflation comes down because of reduced demand for goods and services, it leads to lesser production, and eventually it leads to unemployment. In fact, there are strong links between macroeconomics, central bank policies and the financial innovations that contribute to growth and also to sudden collapse in global markets as is happening now. These links have to be fully explored. India is no exception to this. In the case of India, domestic consumption makes up 60 per cent of the GDP, and as such, the key to ending a slowdown lies in the hands of the consumer. Hence the hypothesis that “when the consumer starts spending, companies start spending” is quite true in the context of our country. But the question is how best to persuade the reluctant consumer to spend? This is also linked with the “paradox of thrift” as introduced by John Maynard Keynes in the 1930s. Put simply, the concept means that if everyone decides to save, consumer spending will fall, causing the total demand to slump, along with the total income, which will ultimately mean that people will have less to save. This means that everyone is worse off and a recession can become self-reinforcing. Keynes also provided a remedy to this problem through intervention in the markets. We have, therefore, to work out an optimal trade-off between inflation and unemployment so that the end result leads to the well-being of the people. How exactly will this be done is a difficult proposition. The Government has to find a solution for this paradoxical situation.

In this context, the Government has recently unveiled a stimulus package to revive the slowing economy by encouraging additional spending. The agenda envisages:
• Reduction in CENVAT- Central Value Added Tax- ( from 4% downwards);
• Measures to Support Exports;
• Financing Housing, especially for Middle and Low Income Groups;
• Highest Priority to MSME (Medium, Small and Micro Enterprises) Sector;
• Additional Allocation to Textiles;
• Other Programs like Elimination of Import Duty and Export Duty on a Few selected Products;
Beyond all these, The Government plans to take a few other additional steps that may be needed to counter recessionary trends and maintain the pace of economic activity. Besides the above-detailed package, there is another package that is on its way.

To what extent will these programmes succeed is not certain. There are still many doubts about this stimulus-bailout route for rescuing the free market. Many people are skeptical because these steps would increase the budget deficits (especially in the forthcoming Union Budget) from enhanced government spending programmes as listed above. This will also have its repercussions on Fiscal Deficit scenario.

Much depends on the strong will of the concerned authorities. Let us hope for the best, and look beyond the gloom and wish that the country will soon be out of this web of recession and inflation. With inflation easing, the stimulus package is well aimed at managing growth. It is also well targeted at distressed sectors. If we compare our country with other countries, it can be asserted that there have been no large-scale lay-offs, and hence no loss of income. There is no reason for India’s growth trajectory to slip too far. The silver lining is that our economy remains fundamentally sound with relatively low foreign trade dependence, tremendous manpower, a growing middle class, a robust corporate sector, and public-private collaboration. But still, we have to effectively work out an optimal trade-off between inflation and recession believing that an optimal balance amongst given options is a way of life too. We must also have faith in our strengths and opportunities in various spheres. Despite the world wide recession and the emerging dark shadows all over, India is still shining, and will keep on shining for ever.

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Chandigarh, the deficient democratic quotient

Gobind Thukral

OVER a million Chandigarh citizens are privileged people. They earn the highest in the country and spend the highest, perhaps. Per capita income, though a not very correct way to judge the real wealth of the people last year was over Rs one lakh, highest in the country and beats even Delhi, the national capital. Its literacy rate of over 84 per cent should provoke its neighbors. Over 90 per cent live in urban areas. There are over 1.1 million telephone and mobile connections. Over lakh internet connections speak about the connectivity the people enjoy. It also prides itself to be capital of Punjab and Haryana.

This city state boasts of over eight lakh vehicles and the number is ever increasing. Amentias like air conditioners, cars, cell phones and visits to restaurants and cinemas are not luxuries, but necessities for the middle and higher income group people. Same is true about liquor consumption. In terms of education and health services also, majority of the citizens are luckier than their counterparts elsewhere in the country. It is another matter that 40 per cent or so people live in slums and slum like conditions. They provide essential support system; domestic helps, rickshaw pullers and street hawkers or other sundry workers.

The citizens are privileged in another way too. The city state has a total budget of Rs 1547.65 crore, almost highest for its size of population and geographic area. The non plan side claims Rs 1,243 crore and the plan Rs 304.65 crore. This is meant to improve human development, infra structure and environment. Rs 438.59 crore goes as salaries to over 24,000 employees. And, the citizens pay as much as 1,467 crore or even more as taxes. The budgetary surplus of Rs 577 crore this year indicates the pink health of the economy. It is another issue that no other state in terms of democratic institutions is treated in this manner.

The economic status and the educational standards [Chandigarh should have highest number of graduates and post graduates] should mean full political participation. It is here that the privileged citizens draw a near blank.

The city no doubt elects one member for the Lok Sabha and has a nearly elected Municipal Corporation. The current Member of Parliament, Mr. Pawan Bansal is a minister of state for finance and hence funds should be no problem. It is another privilege indeed. Yet we find the seasoned politician mostly in tears. He has been sending missives to the city administrator who is also governor of Punjab, complaining of totally ignoring him and the citizens. Every week, as his complaints mount and he feels crestfallen. May it be the cause of farmers whose lands have been virtually usurped by the administration all in the name of development or the plight of the poor the underprivileged slum dwellers and small shopkeepers? Indeed he is worried as he ought to be as elections are a few months away. The Congress Party has now donned the role of the opposition. Why should a democratically elected leader feel ignored? Some body has to provide an answer.

There is, one hears the argument, another democratically elected institution, the municipal corporation that has a swank office in sector 17, the high prize sector. It too is having a running battle with the Chandigarh Administration. Partly it is packed with nominated councilors and partly because its powers are limited and circumscribed by the officialdom. This should not mean that the councilors are performing well all the time and the officials block their good work. At times, the councilors too lag behind and demonstrate partisanship. Yet is it not a negation of democratic norms that a deputy commissioner or a secretary or even a police superintendent is more important than an elected mayor of this privileged city?

One reason for which the citizens are agreeing in a big way is that the administrator is also the Governor of Punjab whose accessibility to the citizens is limited because of the constitutional position he holds. The present setup was created because of terrorism in Punjab and the neighboring areas. It was felt that proper coordination of the law and order agencies and the civil administration, there was need of one person as commander. This worked since Punjab during that harrowing period was mostly under the central rule where the governor called all the shots. [Yet we must not forget that Punjab regained normalcy because of an elected government under Mr. Beant Singh]. Like earlier posting of the chief commissioner as head of the Chandigarh Administration is considered more conducive for day to day running of the administration. His accessibility is greater than that of a governor.

Yet would that ensure better democratic functioning? Democratic system would suffer if the peoples’ day to day participation in the decision making processes is not ensured. The Constitution guarantees them the status of masters as it is “We, the people of India, having solemnly resolved to constitute India into a sovereign socialist republic and to secure to all its citizens liberty.

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Hand Washing leads to good health

Sonia G Handa

WHEN as a child, I was told to wash my hands with soap before eating my food; it looked trivial unless the hands were dirty. The real meaning did not sink in, although I followed it thinking there must be something nevertheless I followed it. Much later I understood the concept of cleanliness and tried to follow it.

But recently certain interesting facts were revealed to me when I attended a lecture on the Global Hand Washing Day. The facts were explained in a scientific manner by learned doctor.

This opened my eyes and whenever I wash my hands, I remember the wise words of the doctor and follow the steps religiously. I have noticed that frequency of cold and flu has gone down.

According to Wikipedia, by 1847, a Hungarian physician Ignaz Philipp Semmelweis, had discovered that frequency of puerperal fever also known as child bed fever, could be drastically cut by using the hand washing principles in obstetrical clinics. Semmelweis, introduced hand washing with chlorinated lime solutions for interns who had performed autopsies. This immediately reduced the incidence of puerperal fever. This was considered only one cause and his hypothesis was largely ignored and rejected as cleanliness was not given importance at that time. He was dismissed from the hospital. He was harassed by the medical community of Vienna and he moved to Budapest.

Semmelweis was annoyed at the unresponsiveness and his colleagues including his wife thought he was loosing his mind. In 1865, he was committed to an asylum and died after few days. His hypothesis was accepted when Louis Pasteur developed the germ theory which presented theoretical explanation for his findings. Sammelweis is considered a pioneer of antiseptic measures.

Hand washing with soap is an extremely effective and inexpensive way to prevent diarrhoeal diseases and pneumonia, which together are responsible for the majority of child deaths. Diarrhoea alone kills almost two million children every year.

Hand washing can also prevent skin infections, eye infections, intestinal worms, SARS and Bird Flu and also benefits the health of people living with HIV/AIDS. Hand washing is effective in preventing the spread of diseases even in congested situations.

According to one study 44% of the diarrhoeal diseases can be prevented by washing hands with soap. About 50%of pneumonia cases can be prevented in children below five years when hands were regularly washed with soap. It is interesting to note that diarrhoeal and pneumonia cases reduced 50% and 25% respectively when hands were washed with soap. Even in hospitals the diseases can be prevented and reduced with regular use of soap and water.

Children should be taught early how to wash and when to wash hands by setting an example by the elders in the family and by teachers in schools. I wonder why do not practice this when its benefits are sp clearly established. There is an assumption that visible dirt should be cleaned by washing hands with water alone.

The use of soap breaks down and dislodges the smear and grime that transmits most germs by rubbing and friction action, and leaves the hands smelling pleasant, which itself is a motivation for the use of soap. With proper use, all soaps are equally efficient at rinsing away the sickness causing germs.

Hands should always be washed with soap before cooking and before eating food, before touching a small child, before and after touching a sick or injured person, after using toilet, after handling garbage, after cleaning a child’s bottom and after touching animals.

The proper procedure for washing hands is that first one should wet one’s hands, apply soap and lather well. Then one should scrub properly on all surfaces including wrists, front and back of the hands, between fingers and under the nails. After rinsing properly with water, one should dry one’s hands properly.

So to remain healthy by washing hands. It is so simple, cheap and effective way to keep diseases at bay.

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New US administration should revise policies to reduce civilian

THE US military's investigation into deadly and controversial air strikes in Azizabad in Afghanistan in August 2008 was deeply flawed. Human Rights Watch demanded in a letter to US Secretary of Defense Robert Gates to take responsibility for civilian casualties when that is warranted and take appropriate disciplinary or criminal action against those responsible.

On October 1, 2008, the Department of Defense published a summary of a report by Brig. Gen. Michael Callan of its investigations into US air strikes on the village of Azizabad in Herat province on August 21-22, 2008. Since that time, Human Rights Watch has conducted additional research into the events surrounding the Azizabad air strikes, reviewed the facts presented in the summary, and analyzed the Callan investigation's methodology.

"The weaknesses in the Callan investigation call into question the Defense Department's commitment to avoid civilian casualties," said Brad Adams, Asia director at Human Rights Watch. "Unless the new Obama administration urgently addresses the US military's air strike practices in Afghanistan, more unnecessary civilian deaths and injuries will result."

Separate investigations conducted by the United Nations, the government of Afghanistan, and the Afghan Independent Human Rights Commission concluded 78 to 92 civilians had been killed at Azizabad, the majority of them women and children. For weeks after the incident, the US strongly rejected all three investigations. An initial US military inquiry by the Combined Joint Task Force 101 concluded that no more than five to seven civilians and 30 to 35 Taliban fighters had been killed. In various media interviews, US officials suggested that the villagers were spreading Taliban propaganda.

After the release of video showing significant numbers of civilian dead, and strong criticism from Afghan President Hamid Karzai and the UN, the US announced on September 7 that it would conduct a new investigation led by General Callan.

The Callan report summary accepted a larger figure for the number of dead - 33 civilians - but rejected the much higher civilian death tolls reported by the UN, the Afghan Independent Human

Rights Commission, and the Afghan government, and criticized their methodology. It failed to acknowledge any flaws in the initial US assessments, and it dismissed villager testimony as financially or politically motivated.

The summary concluded that the US attack on insurgent forces in Azizabad was "necessary" and "proportional," failing to acknowledge any possible mistakes in US intelligence. It exonerated the US forces who carried out the attack of any wrongdoing without providing a basis for its conclusions, and suggested without evidence that Taliban forces deliberately used civilians as "shields."

Flaws in the Callan investigation that may have led to a lower US estimate of civilians killed include: the dismissal of villager testimony about numbers killed, the rejection of consistent claims that some graves contained more than one body, and the assumption that almost all the men who died were insurgents.

"There was great hope in Afghanistan that the Callan report would provide a credible and detailed analysis of the Azizabad airstrikes, place blame where it fell, lead to appropriate disciplinary action, and result in operational changes that would avoid such tragedies in the future," said Adams. "Unfortunately, this has not happened."

Human Rights Watch urged the Defense Department to publicly release the Callan report."We deeply regret the Pentagon's decision not to declassify and publish the full report of the Azizabad investigation," said Adams. "In the interests of bringing to public attention the investigation's methodology, analysis, and findings, we urge Defense Secretary Gates to reconsider that decision."

Human Rights Watch said that the US and its allies have made some positive operational changes and commitments to try to reduce civilian casualties, particularly in Tactical Directives issued on September 2 and December 8 and in various statements to the media by political and military leaders.

"The US still needs to change its policies and practices on air strikes to end the string of attacks that have caused so much loss of civilian life," said Adams. "Otherwise the planned arrival of 20-30,000 more troops in Afghanistan may lead to greater, not fewer, civilian deaths."

In September 2008 Human Rights Watch had drawn attention to this total disregard to human lives.

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