www.abplgroup.com - Asian Voice 28th September 2013
COMMENT
Is this the light at the end of the tunnel?
Mukesh Ambani, CEO of Reliance Industries, cautioned his fellow Indians against surrendering to “gloom and doom” apropos on the country’s slowing economy. Better times were round the corner, he said. The media, with a stack of quotes at the ready from stock brokers, hedge fund managers and money changers out to make fast buck, appeared to hold-centre, as doomsayers normally do, but the best reality checks are made by the true economic drivers, of whom Mr Ambani is an outstanding example. Early signs of an Indian turnaround were evident within the first days of this month, starting with the arrival of Raghuram Rajan as Governor of the Reserve Bank of India (RBI), who hit ground running with a tranche of reforms to kickstart the economy. We live, however in a globalized world, with economic performance in one of its parts influencing outcomes in others. So it was that when the US Federal Reserve Chairman Ben Bernanke announced that there would be no quantitative easing in his country’s $85 billion monthly input, that is to say, its stimulus package, markets around the world, particularly in Asia including India, responded with newly found exuberance. When America, with the world’s largest economy, sneezes, most nations catch cold; if America smiles, the others give way to joyous laughter. India was no exception. The rupee recorded its second-highest gain ever and the Sensex rise was its highest in four years. Investor’s wealth measured in terms of Bombay Stock Exchange (BSE’s) market capitalization, grew by Rs1.9 lakh crore to Rs65.5 lakh crore, making India a member once more of the 1 trillion market cap club. Net Foreign Institutional Investor (FII)) inflows reached Rs 3,444 crore, one of the highest recorded in recent
times. The rupee appreciated 161 paise against the US dollar to 61.78 from its previous close of 63.39. This was heady stuff, when RBI Governor stepped in to apply the brakes. The champagne would cease to flow, heads would have to clear, as figures showed that inflations levels were still too high. Inflation had to be reined in, prices tamed, for growth to be meaningful. Mr Rajan weighed up his options; he raised the repo rate, at which the RBI lends to banks, by 25 basic points to 7.5 per cent. The minimum daily cash reserve ratio was cut to 95 per cent from 99 per cent. The RBI’s lending rate remained untouched; hence the interest on loans and mortgages would be where they were for the past year. Stocks, bonds and rupee fell, reflecting disappointed market sentiment. Mr Rajan, forced to take a tough call, refused to blink. Spectacular growth on a relative weak platforms can give rise to bubbles. These tend to burst and the good times become bad in a trice, before they have time to takeoff. A more telling analogy would be a giant ocean liner making a turn in turbulent waters: a precipitate movement could capsize the vessel; a controlled switch-over is a safer bet. So it is with the Indian economy. There is currently a great deal of volatility in the market. A change of gears is better done with the overall picture in sight. Mr Rajan had the US Federal Reserve Chairman Ben Bernanke to thank for continuing with his high stimulus package, for the buoyancy it brought to the Indian market. It was thus right and proper for the RBI Governor to opt for consolidation before moving forward to an overheating stimulus package of his own and the perils this might entail. There is enough economic activity in India to keep the ship on course.
The majesty of English law has provided its manifold fruits for kindred legal systems in India and America elsewhere to savour and grow. Cases and judgments in British courts of law have been (and are) used as points of reference throughout much of the democratic world. But for how long, alas. For courts in the UK are increasingly given to examining and adjudicating on such issues as the right of a Muslim woman to wear a niqaab (or fully clad burkha) in school classrooms, witness stands, airport immigration desks, police stations and come the day, as judge, advocate and juror, not to speak of the validity of Sharia law in the Queen’s realm. Midsummer night dream or nightmare? Does the writ of land no longer run in certain corners of England’s green and pleasant land? If the Sharia is to prevail, is capital punishment and public flogging to become the accepted norm in the ghettos of Birmingham and Bradford? Judge Peter Murphy delivered a landmark judgment on September 16 on the case of a 21 year-old Muslim woman (referred by him as D) who appeared in his court as defendant in a case of witness intimidation. Judge Murphy examined the case with exemplary fairness, sympathy and courtesy, referring to the provisions of Sharia law without prejudice, and to Islamic jurisprudence, where relevant. But a more fundamental question must surely be posed. In a globalized world people of different religious faiths and ethnicities are
given increasingly to making their homes in a variety of societies, mostly in the affluent West. Are the newcomers under no obligation to respect the laws and social standards of their hosts? After all, their migration took place in search for a more comfortable lifestyle, hence their journey to greener pastures was undertaken of their own volition, surely. The countries whence they came are largely ignorant of habeas corpus and civil liberties; where oppression of religious minorities is rife, where entrenched ways conflict with the requirements of modern education and science. The bombing of a Christian church in Pakistan at the weekend has left 83 worshippers dead and nearly 200 injured; a similar bombing in a shia locality in Baghdad claimed 65 lives, while a concurrent jihadi attack on a shopping mall in the centre of Nairobi has claimed numerous innocent lives, reinforcing a growing perception of depravity masquerading as civilization, of twined nihilism and anarchy. From beyond the Islamic world have come considerable numbers of people to Europe and North America in search of a secure and prosperous future. They have little discomfort adjusting to the values and practices of the host community and grafting these to their inherited traditions. The obdurate refusal to adjust leads inevitably to resentment, avoidable social tensions and cumbustion. Lessons still to be learned are by those who need them most.
The election in Sri Lanka’s Tamil-populated Jaffna area in the country’ north east, for which there was an impressive 70 per cent voter turnout, resulting in a comprehensive victory for the regional Tamil party. This democratic exercise is much to be welcomed; so also is construction of new housing to rehabilitate Tamil refugees made homeless by the country’s long civil war. Commercial activity in the region bodes well for the country’s future. Dark spots, however, remain. The massive army and police presence in the area bred fear and resentment. Until this is properly addressed by the Colombo government, Sri Lanka will not be restored to full political health. Across the water in India’s Tamil Nadu state, the two major political parties, the opposition DMK and the ruling AIDMK are engaged in an auction of extremism, of playing to the gallery in the hope of winning votes in state and national elections. Both parties upped the ante by opposing the presence of Sri Lankan cricketers in Chennai during the last IPL tournament, much to the shame and embarrass-
ment of the rest of India. The DMK and AIDMK have now gone further, demanding that the Government of India boycott the Commonwealth Heads of Government Meeting (CHOGM) to be held in Colombo shortly. This has drawn a sharp rebuke from former Sri Lankan Supreme Court judge C.V. Wigneswaran, a Tamil candidate who is likely to become the region’s first elected chief minister. “I am not for this business of boycotting,” he said. “We must have the courage of conviction to tell the Sri Lankan government” the wrongs it has done and how these can be redressed. “It is better you say it at the CHOGM rather than keep away.” He accused the Tamil Nadu parties of treating the Sri Lankan Tamil issue “like a tennis ball.” Mr Wigneswaran said India owed it to Sri Lanka’s Tamil community to help revive democratic institutions. “We especially need the support of South India,” he said. To ignore an opening to talk is to miss an important step towards an enduring peace. Sri Lanka’s masses deserve better.
3 Thinking is skilled work. It is not true that we are naturally endowed with the ability to think clearly and logically - without learning how or without practising
- Alfred Mander (1947)
“Our London” Navin Shah
GLA Member for Brent and Harrow
Swami Satyamitranand Giri Maharaj celebration time I attend a number of diverse events of which few are memorable ones - the ones that touch your heart! Last week the event at Kadwa Patidar Hall was one of those unique ones which will remain with me for ever.
Rule of law is fundamental to a modern democracy
Rays of light in Sri Lanka’s North East
Birthday celebrations come and go but the celebration of 82nd birthday of Swami Satyamitranand Giri Maharaj last week (19 September) was truly a big occasion. Big, not for the vast number of people from across the world who attended the celebration. Big not because of the big name community leaders and politicians attended. It was a huge and remarkable occasion simply because of the message that Swamiji conveyed to the devotees and wellwishers. Having met Swamiji on many an occasions and attended such gatherings before I pretty much knew what to expect but the last week’s experience was an exceptional one. The first message for the politicians like me was a key one. Swamiji referred to the politicians who make a great deal about ‘transparen-
cy’. He agreed how important this was but said for him transparency was like a building - a building with windows and the windows of his building were always wide open. See what you want to! It is important that every one was as honest and open as that. Swamiji has no pretence and is full of laughter which was on display all evening. He was due to retire on a couple of occasions (to have some rest) but given his commitment and how much he enjoyed he stayed on and ‘entertained’ all of us. He asked everyone to laugh and keep smiling because he said ‘laughter and smile are your own property’. Swamiji talked about how people have to face / put up with setbacks in life due to the circumstances like the misfortune and poverty. But he said those with wealth should also learn to persevere and use the wealth for ‘seva’ (service to human kind). Another interesting comment from the Swami was about ‘Roti’ (Bread/Food). When Bollywood deals with roti, it addresses material values – roti, kapda and makan (bread, clothes and property/house) but Guruji said ‘Roti is a passage to Lord Rama’. When one is well fed the link to spirituality becomes easier – empty stomach is no good to anyone.
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