December 2017 Hindu Editorials Printed

EDITORIAL
Irish recovery: when Leo Varadkar’s government almost collapsed

DECEMBER 01, 2017 00:15 IST
UPDATED: NOVEMBER 30, 2017 23:19 IST
Leo Varadkar’s government averts a potential collapse, but question marks remain
T he resignation of Frances Fitzgerald, Ireland’s Deputy Prime Minister, has averted the risk of an
early election and saved the minority government of the Fine Gael party. Ms. Fitzgerald becomes the
second political casualty in less than a year of a longstanding scandal, after former premier and highly
regarded centre-right leader, Enda Kenny, was forced to step down as Prime Minister in May. The specific
allegation against Ms. Fitzgerald was that as the Minister for Justice in the previous administration she
did not take action despite having knowledge about an attempt by an ex-chief of police to discredit a
whistleblower. She had claimed that she had no authority to intervene in the matter when a judicial
inquiry was under way. But once Sinn Fein, the hardline party of the left, moved a vote of no-confidence
this month, her exit was inevitable. While Prime Minister Leo Varadkar initially defended his deputy, the
opposition Fianna Fáil, on whose support the Fine Gael minority government depends, moved a motion
against her. Ms. Fitzgerald’s resignation has averted the collapse of the government for now. The reprieve
Mr. Varadkar has earned has come at a critical stage in Ireland’s negotiations in the European Union over
the implications of Britain’s exit from the bloc. At issue is the maintenance of the status quo of open
borders with Northern Ireland, which underpins the landmark 1998 Good Friday agreement. Britain’s
withdrawal from the EU customs union could lead to the reintroduction of security checkpoints.
Agreement on the status of the Irish boundary is one of the three EU preconditions for Brexit
negotiations to move to the next phase, to discussions on a free-trade agreement between London and
Brussels. There has been greater progress on the other two elements of the terms of Britain’s divorce — a
financial settlement and the reciprocal rights of U.K. and EU citizens. The future of the Irish border is
intertwined with the nature and shape of the U.K.’s relationship with the bloc, and clarity could take some
time coming. Mr. Varadkar’s insistence on obtaining written assurances on how London proposes to
prevent a hard border and the threat to block Brexit talks are possibly aimed at domestic audiences.
Dublin has even demanded that post-Brexit, Northern Ireland be integrated into an EU regulatory
regime. London’s conservative government, propped up by the Democratic Unionist Party, may view this
as no more than political posturing by an equally weak government across the border. The broader reality
is that Britain is Ireland’s largest market, and the gateway for sizeable exports to Europe and the rest of
the world. In the current state of Brexit negotiations, a spirit of reasonable accommodation could well
define the future.
EDITORIAL
Dealing with data

UPDATED: NOVEMBER 30, 2017 23:27 IST
Public inputs are vital in framing a robust law to protect individual data
T he dawn of the information age opened up great opportunities for the beneficial use of data. It also
enhanced the perils of unregulated and arbitrary use of personal data. Unauthorised leaks, hacking and
other cyber crimes have rendered data bases vulnerable. But it is the conflict between the massive scope
for progress provided by the digital era and the fear of loss of individual autonomy that is foregrounded
in any debates about data protection laws. It is against this backdrop that the White Paper made public by
the Justice B.N. Srikrishna Committee to elicit views from the public on the shape and substance of a
comprehensive data protection law assumes significance. To some, in this era of Big Data analytics and
automated, algorithm-based processing of zettabytes of information, the fear that their personal data
may be unprotected may conjure up visions of a dystopian world in which individual liberties are
compromised. Therefore, it would be appropriate to draw up a law using the rights-based approach of the
European Union’s General Data Protection Regulation, 2016, in which data protection is comprehensive
and exemptions limited. Some may prefer the American model in which the norms are stringent for
government departments processing personal information, while private entities have to abide by the
norms of giving notice and receiving consent. An enlightened citizenry will only help itself in
participating in the search for a good data protection framework.
India does not have a separate law for data protection, though Section 43A of the Information Technology
Act provides a measure of legal protection of personal information. In 2012, the Justice A.P. Shah
Committee recommended a set of principles for a legal framework for protecting privacy. Drawn from
OECD guidelines, these principles were centred on sufficient notice and disclosure to citizens when data
are collected, limitations on data collection and use, and norms related to data security and
accountability. The Srikrishna Committee has also flagged seven major principles. It wants the law to be
technology-agnostic and enshrine the principle of informed consent. It favours data minimisation and
accountability of those who process and control data. It privileges a holistic approach as the law would
apply to both government and private entities, but with “differential obligations”. This is where the law
requires careful drafting and strictly defined concepts. It is legitimate to collect personal data in the
public interest, but this information should be protected and used only for the purposes it was collected.
Above all, the law must provide for a suitably empowered statutory authority to enforce its promised
protection to citizens’ data.
Portend - be a sign or warning that (something, especially something momentous or calamitous) is likely to happen.
Vanguard - a group of people leading the way in new developments or ideas / position at the forefront
Coterminous - having the same boundaries or extent in space, time, or meaning.
Pump priming - the stimulation of economic activity by investment.

E.g. - pump-priming fund
introduction of fluid into a pump to prepare it for working.
EDITORIAL
Fragile momentum: India's economic growth

UPDATED: DECEMBER 01, 2017 23:24 IST
The economic slowdown has been reversed, but the task of sustaining the trend remains
T urning around a large ship is never easy. So it must give policymakers a measure of satisfaction that
the slowdown seen during the last fiscal year and in the first quarter has been reversed. Data released on
Thursday show that economic growth as measured by the gross domestic product rebounded to 6.3% in
the three months through September, from a three-year low of 5.7% in the preceding quarter. The
reversal in direction apart, what is equally noteworthy is that this revival was coterminous with the
nationwide roll-out of the goods and services tax from July 1. Interestingly, it was manufacturing that
was in the vanguard of the rebound, with gross value added for the sector recovering smartly from the
first quarter’s anaemic 1.2% growth to post a healthy 7% expansion. While the GVA data for the sector
appear, on the face of it, to be significantly at variance from the Index of Industrial Production data that
had been reported for the last quarter, the Central Statistics Office made it clear that the second-quarter
IIP manufacturing growth figure of 2.2% was indeed factored in and used as a proxy for the approximately
one-fifth of manufacturing GVA contributed by the “quasi-corporate and unorganised segment”. A lion’s
share, or more than 70%, of economic activity in the sector was measured using growth among private
listed corporate entities, based on the numbers reported by them.
Sustaining and building on this reversal of momentum may be more challenging in the coming months,
given other economic data that are a cause for concern and some external headwinds. Specifically,
agriculture remains in a slump, and this in a ‘normal’ monsoon year — GVA growth in the sector, which
includes forestry and fishing, slowed to 1.7%, from 2.3% in the first quarter, and was considerably weaker
than the 4.1% pace posted in the year-earlier period. Agriculture is a significant contributor to rural
incomes and consumption demand, and the impact of a protracted agricultural slowdown on the larger
economy cannot be overstated. Worryingly, the foodgrain output in the kharif season contracted by 2.8%,
compared with a 10.7% expansion in the year-earlier period. This could portend a resurgence of
inflationary pressures on food prices that would limit the room for growth-supportive monetary action
by the Reserve Bank of India. Consumption spending by households also remains in a stubborn rut: the
second-quarter growth at 6.5% was a tad slower than the 6.6% seen in April-June; it was 7.9% a year
earlier. With global oil prices having risen appreciably, and the fiscal headroom for more pump priming
by the government having narrowed drastically — the fiscal deficit at the end of October has already hit
96.1% of the budget estimate for 2017-18 — the coming quarters could well test the real mettle of the
economic recovery.
Apathy - lack of interest, enthusiasm, or concern
EDITORIAL
Accident-prone: the apathy over enforcing road safety rules

The apathy over enforcing road safety rules must stop
T he most effective measure to keep roads safe is enforcement of rules with zero tolerance to
violations. But as anyone who uses India’s roads knows only too well, that is not an administrative
priority. Even the periodic directions of the Supreme Court in a public interest case, Dr. S. Rajasekaran v.
Union of India, have not produced any dramatic change in the official attitude. In spite of the court
setting up the Committee on Road Safety and appointing an amicus curiae to help implement its
recommendations, it is mostly business as usual for the police in enforcing road rules, for engineers
tasked with forming roads and pavements, and transport officials in charge of licensing. The death of
1,50,785 people in accidents in 2016, which represents a 3.2% rise over the previous year, indicates the
scale of the challenge. Fortunately, the orders of the court now provide actionable points with deadlines
for implementation. Governments should be called to account on these, and civil society must ensure
that they act without compromise. The most important among these is the Road Safety Action Plan that
each State and Union Territory must announce by March 2018, and roll out after giving due publicity. But
police forces and transport bureaucracies need not wait for formalisation of the plan, and should start
enforcing rules relating to lane-based driving, using CCTV cameras to penalise offenders, and conducting
safety audits along with experts.
The absence of a scientific approach to accident investigation in India remains a major factor in fixing
responsibility. This was pointed out by the Sundar Committee of the Ministry of Road Transport in 2007,
but other than a failed attempt at creating a National Road Safety and Traffic Management Board, no real
effort has been made at reform. The orders of the Supreme Court provide a road map, and the direction to
States to form a District Road Safety Committee headed by the Collector before January 31, 2018 should
ensure that someone is accountable when citizens file complaints on hazardous conditions. It bears
pointing out that the court-appointed Committee on Road Safety has written to States on the need to
prosecute every case of driving under the influence of alcohol and drugs, seeking imprisonment and fine,
and to treat driving on the wrong side of the carriageway as an offence under Section 279 of the Indian
Penal Code, which can lead to imprisonment, and not merely under the Motor Vehicles Act. Stringent
penalties have a lower chance of being imposed, compared to fines that are proportionate to the offence.
Yet, even the existing minor penalties are not being imposed, and road conditions remain hazardous due
to poor engineering. This is proof of the apathy of the system. It’s time to shake the system out of its
indifference.
EDITORIAL
Bit of a bubble? — on bitcoins and cryptocurrencies

It is difficult to account for the dizzying increase in the value of cryptocurrencies
O ne lakh rupees invested in bitcoin in 2010 would be worth a few hundred crore rupees today. That
is the kind of extraordinary return the digital currency has given investors as its price has witnessed a
meteoric rise, from just a few cents in 2010 to hit a lifetime high of over $11,000 last week. In 2017 alone,
bitcoin price has increased by over 1000%. In fact, all it took for the currency to reach $11,000 after
breaching the $10,000 mark was a single day. True to its nature, however, soon after hitting $11,000,
bitcoin witnessed a sharp drop of 20% before recovering some of its losses to close the day almost flat.
Other cryptocurrencies like Ethereum too have shown equally impressive gains and falls, particularly
over the last year. Enthusiasts argue that cryptocurrencies like bitcoin are rapidly transforming into
mainstream money that will offer serious competition to national currencies issued by central banks.
Therefore they see bitcoin’s current price rise as merely a reflection of its bright future as a stateless
currency. Its limited supply and the blockchain technology on which it functions, they say, have also
added to its exotic appeal. Sceptics, however, have pointed to the Tulip Bubble of the 17th century and see
Annex - 1
Internet stocks of the late 1990s as cautionary examples. The most notable among the critics has been
J.P.Morgan chief executive officer Jamie Dimon who called bitcoin a “fraud” that will make its investors
poor.
Whether bitcoin holds huge fundamental value as a medium of exchange, as many of its supporters
claim, is yet to be seen. The blockchain technology may well have some merits, as shown by increasing
interest in it even among central banks and other financial institutions. Many have even started offering
financial products and services centred around bitcoin. Yet the fundamental value of any currency is
based not on its underlying technology but on its general acceptability as money for the purpose of
commerce. Bitcoin, or any other cryptocurrency, is nowhere close to widespread use as a medium that
helps in the exchange of goods and services. Earlier this year, a Morgan Stanley research note concluded
that bitcoin’s acceptance “is virtually zero”. In fact, it found that the acceptance of bitcoin among the top
500 online retailers actually dropped in the last year. What then explains bitcoin’s huge price rise? The
fear of missing out on extraordinary gains, achievable within extremely short periods of time in the case
of bitcoin, has likely pulled people from all walks of life into the digital currency. This is typical of
bubbles that are driven by emotion rather than value. It is also a telling sign of the times where easy
monetary policy has pushed investors starved of yield in traditional assets into highly risky assets like
bitcoin.
Impunity - exemption from punishment or freedom from the injurious consequences of an action, immunity,
indemnity.
EDITORIAL
Capturing crime — on the NCRB data for 2016

The increase in crimes against women must prompt better policing and all-round reform
T he National Crime Records Bureau data for 2016 on two important aspects, violent crime and
crime against women, should prompt State governments to make a serious study of the underlying
causes. Not all States are equally affected; Uttar Pradesh and Bihar record the maximum number of
murders. The national tally on crimes against women, which includes rape, abduction, assault and
cruelty by husband and relatives, is up by 2.9% over that of 2015. Going by the data, there is a distinct
urban geography as well for violence against women, with Delhi and Mumbai appearing the least safe:
Delhi recorded a rate of crime that is more than twice the national average. As several studies have shown
over the years, the annual data is useful in reviewing trends of extreme events, such as murder, but less so
in the case of other offences that tend to be underreported. Viewed in perspective, the murder rate today
has declined to the level prevailing in the 1950s, which was 2.7 per 1,00,000 people, after touching a peak
of 4.62 in 1992. But that macro figure conceals regional variations, witnessed in U.P. and Bihar, where
4,889 and 2,581 murder incidents took place during 2016, respectively, while it was 305 in densely
populated Kerala. One question that needs to be analysed is, how much does social development
influence a reduction in crime?
In the years since the Delhi gang rape case of 2012 that shook the country, the definition of the heinous
offence has been broadened, police forces have been directed to record the crime with greater sensitivity,
and some measures initiated to make public places safer for women. This approach could lead to a
reduction in violent crime over time. A focussed programme to universalise education and skills training
would potentially keep juveniles from coming into conflict with the law. Last year’s data indicate that
there is a rise in the number of cases involving juveniles. There are also basic issues that need urgent
reform, such as modernising the police, recruiting the right candidates and teaching them to uphold
human rights. The orders of the Supreme Court on police reforms issued in 2006 have not been
implemented in letter and spirit by all States. With genuine measures, Ministerial superintendence over
the police would become more transparent and socially accountable, eliminating political interference in
its working. This would lead to a reduction in crimes committed with impunity and raise public
confidence in the criminal justice delivery system. As a measure of data improvement, it should be
mandatory to record not just the principal offence in a case, as the NCRB does, and list all cognisable
offences separately. Rather than view the available data passively, governments would do well to launch
serious studies that result in policies and measures for freedom from violence.
Annex - 1
Dutch Tulip Bulb Market Bubble

DEFINITION of 'Dutch Tulip Bulb Market Bubble'
The Dutch tulip bulb market bubble is to this day one of the most famous market bubbles of all time,
as well as a cautionary tale. It occurred in Holland during the early 1600s when speculation drove
the value of tulip bulbs to extremes. At the height of the market, the rarest tulip bulbs traded for as
much as six times the average person's annual salary.
BREAKING DOWN 'Dutch Tulip Bulb Market Bubble'
The tulip was brought to Europe in the middle of the sixteenth century from the Ottoman Empire.
Holland's upper classes soon competed for the rarest bulbs as tulips became a status symbol.
By 1636, tulip bulbs were traded on the stock exchanges of numerous Dutch towns and cities,
encouraging all members of society to speculate in the markets. Many people traded or sold
possessions, including properties, to participate in the tulip market mania. Like any bubble, it all
came to an end in 1637, when prices dropped and panic selling began. Bulbs were soon trading at a
fraction of what they once had, leaving many people in financial ruin.
The obsession with tulips — referred to as "Tulipmania" — has captured public imagination for
generations and been the subject of several books including a novel called "Tulip Fever" by
Deborah Moggach which was made into a movie in 2017.
BUBBLE
A bubble is an economic cycle characterized by rapid escalation of asset prices followed by a
contraction. It is created by a surge in asset prices unwarranted by the fundamentals of the asset and
driven by exuberant market behavior. When no more investors are willing to buy at the elevated
price, a massive sello occurs, causing the bubble to deflate.
BREAKING DOWN 'Bubble'

Bubbles form in economies, securities, stock markets and business sectors because of a change in
investor behavior. This can be a real change, as occurred in the bubble economy of Japan in the
1980s when banks were partially deregulated, or a paradigm shi , as happened during the dot-com
boom in the late 1990s and early 2000s. During the boom, people bought tech stocks at high prices,
believing they could sell them at a higher price until confidence was lost and a large market
correction, or crash, occurred. Bubbles in equities markets and economies cause resources to be
transferred to areas of rapid growth. At the end of a bubble, resources are moved again, causing
prices to deflate.
The First Bubble
Tulipmania
Tulipmania was the first major financial bubble. Investors began to madly purchase tulips, pushing
their prices to unprecedented highs; the average price of a single flower exceeded the annual income
of a skilled worker. Tulips sold for over 4000 florins, the currency of the Netherlands at the time. As
prices drastically collapsed over the course of a week, many tulip holders instantly went bankrupt.
BREAKING DOWN 'Tulipmania'

Tulipmania reflects the general cycle of a bubble: investors lose track of rational expectations,
psychological biases lead to a massive upswing in the price of an asset or sector, a positive-feedback
cycle continues to inflate prices, investors realize that they are merely holding a tulip that they sold
their houses for, prices collapse due to a massive sell o and many go bankrupt.
A similar cycle was witnessed during the dotcom bubble.
Bubble Company
A company whose valuation greatly exceeds that suggested by its fundamentals. The first well-
documented bubble company was the South Sea Company, which caused the South Sea Bubble in
1720. A bubble company arises when speculators continuously buy up the stock in expectation of
increased future earnings. However, bubble company shares o en become worthless once the
speculative bubble bursts.
BREAKING DOWN 'Bubble Company'

One common characteristic of a bubble company is scandal. For example, during the dotcom bubble
many internet-based firms traded at high multiples under the expectation of generating high levels
of future growth. When earnings did not meet analysts' expectations, many firms began to cook the
books in order to manipulate their bottom lines. Once the internet bubble burst, the individual
bubble companies either went bankrupt or experienced massive drops in their share prices.
HOUSING BUBBLE
A housing bubble is a run-up in housing prices fueled by demand, speculation and exuberance.
Housing bubbles usually start with an increase in demand, in the face of limited supply, which takes
a relatively long period of time to replenish and increase. Speculators enter the market, further
driving demand. At some point, demand decreases or stagnates at the same time supply increases,
resulting in a sharp drop in prices -- and the bubble bursts.
BREAKING DOWN 'Housing Bubble'

A financial bubble refers to a situation where there is a relatively high level of trading activity on a
particular asset class at price levels that are significantly higher than their intrinsic values. In other
words, a bubble occurs when certain investments are bid up to prices that are far too high to be
sustainable in the long run.
Speculative Bubble
A speculative bubble is a spike in asset values within a particular industry, commodity, or asset class.
A speculative bubble is usually caused by exaggerated expectations of future growth, price
appreciation, or other events that could cause an increase in asset values. This drives trading
volumes higher, and as more investors rally around the heightened expectation, buyers outnumber
sellers, pushing prices beyond what an objective analysis of intrinsic value would suggest.
The bubble is not completed until prices fall back down to normalized levels; this usually involves a
period of steep decline in price during which most investors panic and sell out of their investments.
May also be referred to as a "price bubble" or "market bubble".
BREAKING DOWN 'Speculative Bubble'

Speculative bubbles have a long history in world markets; the progression of time along with
economic advances has not slowed their arrival. In our modern financial markets, speculators can
o en make profitable bets when speculative bubbles burst by purchasing derivatives or shorting
securities directly.
While each speculative bubble has its own driving factors and variables, most involve a combination
of fundamental and psychological forces. In the beginning, attractive fundamentals may drive prices
higher, but over time behavioral finance theories suggest that people invest so as to not "miss the
boat" on high returns gained by others. When the artificially high prices inevitably fall, most short-
term investors are shaken out of the market a er which the market can return to being driven by
fundamental metrics.
An example of a famous speculative bubble that occurred from 1719-1720. In 1715 the country of
France was in a dire economic straits, with an unstable treasury and a wildly fluctuating currency.
John Law, a Scotsman and noted gambler living in exile in France, helped the government convert to
paper currency (by taking metallic coinage deposits and giving banknotes equal to value of the
currency on the day of deposit) and find its economic footing. In 1717 he acquired the Mississippi
Company, to which the French government gave a monopoly on trading rights with its colonies in
gratitude for his assistance.
BREAKING DOWN 'Mississippi Company'

In 1719 Law created a plan to restructure the French national debt under the Mississippi Company's
auspices, exchanging company shares for debt and guaranteeing significant profits. Investors
flocked, the national bank (now e ectively owned by Law) printed money in response and massive
inflation ensued. A bank run followed in May 1721 and the French treasury admitted that it did not
have enough metallic currency to cover its paper instruments. It attempted to devalue Mississippi
Company shares to no avail and finally the bank stopped paying in coinage. Shares in the company
quickly plummeted to zero, the company was overtaken and divested of its assets divested and Law
went into exile once more.
Other famous speculative bubbles include:
Echo Bubble
A post-bubble rally that becomes another, smaller bubble. The echo bubble usually occurs in the
sector in which the preceding bubble was most prominent, but the echo is less dramatic.
BREAKING DOWN 'Echo Bubble'

People point to the rally that occurred a er the market crash of 1929 as an example of an echo
bubble. Just like its more prominent predecessor, the smaller echo bubble eventually burst. Also,
a er the technology bubble that occurred at the turn of the 21st century - one of the biggest bubbles
of all time - people believed that another echo bubble was on the way.
STANDARD OF LIVING BUBBLE
BREAKING DOWN 'Standard Of Living Bubble'
The standard of living bubble refers to consumers relying on credit to feel rich, instead of relying on
increased real wages, which simply did not occur. Some have characterized the western economies
as having this type of consumer credit bubble, as in years, such as 2005; the average personal
savings rate for Americans was negative. This meant that the average American was actually saving a
negative amount of money over the course of the year, i.e. spending more than they earned.
Dotcom Bubble
The dotcom bubble occurred in the late 1990s and was characterized by a rapid rise in equity
markets fueled by investments in Internet-based companies. During the dotcom bubble, the value of
equity markets grew exponentially, with the technology-dominated NASDAQ index rising from under
1,000 to more than 5,000 between 1995 and 2000.
BREAKING DOWN 'Dotcom Bubble'

The dotcom bubble grew out of a combination of the presence of speculative or fad-based investing,
the abundance of venture capital funding for startups and the failure of dotcoms to turn a profit.
Investors poured money into Internet startups during the 1990s in the hope that those companies
would one day become profitable, and many investors and venture capitalists abandoned a cautious
approach for fear of not being able to cash in on the growing use of the Internet.
How the Dotcom Bubble Burst

The 1990s was a period of rapid technological advancement in many areas, but it was the
commercialization of the Internet that led to the greatest expansion of capital growth the country
had ever seen. Although high-tech standard bearers, such as Intel, Cisco, and Oracle were driving the
organic growth in the technology sector, it was the upstart dotcom companies that fueled the stock
market surge that began in 1995.
The bubble that formed over the next five years was fed by cheap money, easy capital, market
overconfidence and pure speculation. Venture capitalists anxious to find the next big score freely
invested in any company with a “.com” a er its name. Valuations were based on earnings and profits
that would not occur for several years if the business model actually worked, and investors were all
too willing to overlook traditional fundamentals. Companies that had yet to generate revenue,
profits and, in some cases, a finished product, went to market with initial public o erings that saw
their stock prices triple and quadruple in one day, creating a feeding frenzy for investors.
The NASDAQ index peaked on March 10, 2000, at 5048, nearly double over the prior year. Right at the
market’s peak, several of the leading high-tech companies, such as Dell and Cisco placed huge sell
orders on their stocks, sparking panic selling among investors. Within a few weeks, the stock market
lost 10% of its value. As investment capital began to dry up, so did the life blood of cash-strapped
dotcom companies. Dotcom companies that had reached market capitalization in the hundreds of
millions of dollars became worthless within a matter of months. By the end of 2001, a majority of
publicly traded dotcom companies folded, and trillions of dollars of investment capital evaporated.
EDITORIAL
Bail-in doubts — on financial resolution legislation

The government needs to re-examine the proposed financial resolution legislation
F inance Minister Arun Jaitley has wisely sought to allay fears about a “bail-in” clause in the Financial
Resolution and Deposit Insurance Bill, 2017. Introduced in Parliament this August, it has caused great anxiety
about the safety of funds parked by millions of households in bank deposits — fears that it will enable banks
to be ‘bailed in’ by depositors’ funds rather than being ‘bailed out’ by taxpayers (or potential buyers). The
government has promised a ₹2.11-lakh crore recapitalisation plan for public sector banks that are now taking
haircuts on defaulted loans being put through the Insolvency and Bankruptcy Code. When banks, in turn,
face collapse, the fear is that depositors could face similar haircuts or write-downs on the value of their
savings in the bank and perhaps be issued securities instead. This provision in the FRDI Bill is purportedly
with an eye on resolving bankruptcy scenarios among financial entities, some of which could be too big to fail
or systemically important. On Friday, Mr. Jaitley said a ‘lot of corrections’ could still take place; the Bill is
currently being reviewed by a parliamentary committee whose report will be considered by the Cabinet. The
Bill proposes the scrapping of the Deposit Insurance and Credit Guarantee Corporation (set up in the early
1960s in the aftermath of the collapse of two banks), which guarantees repayment of bank deposits up to ₹1
lakh in case a bank is liquidated. A new Resolution Corporation under the Finance Ministry will steer
financial entities out of the woods and offer a similar cover for deposits. The silence of the Bill on the extent
of deposits to be guaranteed is a key source of concern, and may necessitate the need to revisit the existing ₹1
lakh deposit guarantee, which hasn’t been revised since 1993.
The need for a specialised regime to cope with large financial firms on the verge of going bust is well-
understood especially since the global financial crisis of 2008. As a resolution tool for stressed financial firms,
the bail-in clause has been the subject of much debate, but it remains the least well-established across the
world. Even the committee framing the FRDI law has noted that it should typically be used where continuing
a firm’s services is considered vital but its sale is unviable — not as a lazy default option. If lenders don’t
believe that a bail-in plan would salvage a firm, triggering the clause could end up causing a run on the bank
instead of preventing one. With its thrust on initiatives such as the Jan Dhan Yojana and demonetisation, the
government has nudged more people towards the formal banking system. To ensure that those gains are not
lost, the government must communicate more clearly the rationale behind the bail-in provision, and the
circumstances in which it may ultimately be used, if at all. Most importantly, it must enhance the amount of
bank deposits that will remain safe under the new dispensation.
EDITORIAL
Forgotten war — on Saudi-Yemen crisis

Yemen is on the brink of a huge famine — the world community must force a ceasefire
F or the past 33 months, Saudi Arabia has been bombing Yemen with help from its Western allies,
turning the country into a humanitarian tragedy. Yemen is now on the brink of “the world’s largest
famine”, according to the United Nations. Already, 17 million people are dependent on external aid for
food and medicine, while the country is fighting a massive cholera outbreak. The breakdown of
government services, lack of drinking water and a crumbling health sector, besides the miseries of civil
war and aerial bombardment, are fast turning Yemen into a failed state, and a breeding ground for
extremist groups such as al-Qaeda in the Arabian Peninsula. The Saudis say they are fighting Houthi
rebels on behalf of the “legitimate” government of Yemen led by Abdrabbuh Mansur Hadi. But the facts
are more complicated. When Yemen plunged into chaos after the resignation of President Ali Abdullah
Saleh in 2012, Houthi rebels mobilised forces and captured the capital city Sana’a and western parts of the
country. Saudi Arabia, which shares a long border with Yemen, was wary of the rising influence of the Shia
Houthis, who it sees as Iran-sponsored militia. The Saudis formed a coalition of anti-Houthi Sunni
groups in Yemen and provided them with money and weapons, while its warplanes started attacking
Houthi positions in March 2015. The war has dragged on since, with Sana’a still under Houthi control.
Saudi Arabia appears desperate to change the outcome of the war. This explains its decision last month to
impose a blockade on the country in the midst of a severe food crisis. Though it eased the blockade later
due to international pressure, the war still rages. It is high time the Saudis and the Houthis came to terms
with reality. Houthis have ground-level support among Shias and perhaps assistance from Iran, but it is
unclear whether they are capable of controlling the whole of Yemen and uniting its diverse populace. On
the other side, Saudi Arabia has allies on the ground and superior air power, but it has still failed to defeat
the Houthis. In recent weeks, the Saudis had reached out to Saleh, whose loyalists were fighting alongside
the Houthis, in an apparent bid to break the rebel coalition. But a day after Saleh expressed readiness for
talks with Riyadh, Houthis claimed to have killed him on Monday, escalating the civil war. To break this
cycle, all warring parties, including the Houthis, the Saleh faction, fighters loyal to President Hadi and
Saudi Arabia should move towards talks. Till now, the international community has largely looked away.
It cannot continue to do so. Allies should put pressure on Riyadh to cease the bombing, and set the stage
for talks between the factions.
EDITORIAL
With that smile — on Shashi Kapoor

DECEMBER 06, 2017 00:02 IST Smoulder - burn slowly with smoke but no flame.
Shashi Kapoor, from big-budget romance to indie innovation to theatre revival
S hashi Kapoor made his debut as a hero well into Hindi cinema’s Golden Age in 1961 with Yash
Chopra’s Dharmputra. The story of a Hindu family bringing up an illegitimate Muslim child, it
brought the ghosts of Partition to the fore and underscored the necessity of addressing the trauma,
violence and bigotry that arose out of that fissure. In time, Chopra would cast him in Waqt, among
the first multi-starrers and which marked the start of another, splashier era in Hindi films. It would
seem that Kapoor, with his crooked-toothed good looks, amiable manner and acting skills that would
never outpace the demands of the film at hand, had always been around. The youngest son of
Prithviraj Kapoor, after Raj and Shammi, he would also nominate himself as the inheritor of the
family’s theatre legacy. For all the easy-breezy romancing of his big-budget films, he widened his
canvas, becoming the first successful crossover actor with roles in, say, Merchant-Ivory productions
(The Householder, In Custody), and producing landmarks such as 36 Chowringhee Lane. Through it
all, his body of work was held afloat by an underlying spirit of progress, inclusion and innovation.
Like Raj Kapoor, he set up a production house. However, unlike the more mainstream RK Films, Film
Valas was all about providing support to alternative voices and indie cinema, much before the term
was even coined. It was a rare, selfless gesture from an industry insider for those on its fringes. In a
way, it was a private version of the government’s National Film Development Corporation and,
despite incurring huge losses, it delivered landmark films like Shyam Benegal’s Junoon and Kalyug,
Aparna Sen’s 36 Chowringhee Lane, Govind Nihalani’s Vijeta and Girish Karnad’s Utsav. These films
also gave Kapoor a platform for his acting skills, given that the big directors had by the 1970s caged
him in romances and multi-starrers. He was smouldering as the Pathan lover of a young British
woman in Junoon and fascinating as Karan in Kalyug, a modern-day interpretation of the
Mahabharata. He brought alive in Vijeta the dilemmas of a man in a troubled marriage even as his
son is trying to find himself, and was unrecognisable as the wily Samsthanak in Utsav. Kapoor’s most
dedicated stint was in establishing Prithvi Theatre. In his boyhood, he would travel across South Asia
with his father’s travelling Prithvi Theatres. In 1978, along with wife Jennifer Kendal, he built the
theatre in Juhu as a tribute to Prithviraj and to his own roots. To know it would outlast him would
surely have given him the greatest joy.
EDITORIAL
New India formula? — on the 15th Finance Commission

The 15th Finance Commission’s job will be especially tricky in the time of GST
T he Centre has moved swiftly to notify the presidential order setting up the Fifteenth Finance
Commission, within five days of the Cabinet’s approval. The constitutional body is tasked with recommending
a fiscal road map and a sharing of resources between the Centre and the States. On Monday, former Revenue
Secretary N.K. Singh, who has been appointed chairman of the Commission, held preliminary discussions on
its “wide-ranging” terms of reference and decided to hold expeditious consultations with stakeholders at all
administrative levels as well as with political parties. Think tanks and academics will be consulted. The
Commission has less than two years to complete its deliberations and submit its report by October 2019, giving
the government a little over a quarter to consider and implement its recommendations for the period from
April 2020 to March 2025. Accepting the 14th Finance Commission’s recommendation to raise the States’ share
in the divisible pool of taxes to 42% from the previous 32% level, Prime Minister Narendra Modi had told Chief
Ministers that although this meant less money at the Centre’s disposal, his government had decided to
strengthen the States’ capacity to move away from a ‘one-size-fits-all’ approach. While Mr. Modi’s disdain for
Central planning is well-known, the terms of reference for this Commission seem to suggest that the record
hike in the tax transfer rate to States is pinching.
The Centre has urged the Commission to finalise its tax-devolution formula after factoring in the impact on
the Union’s fiscal situation, keeping in mind “the continuing imperative of the national development
programme including New India – 2022”. Taken together with its need for resources for essential spending in
areas such as defence, security, infrastructure and climate change, the Centre seems to be seeking a rollback of
the 42% share for States. The government’s top brass has repeatedly asserted the need for revenue to maintain
public spending in the face of flak for high petroleum taxes. But a reduction from the 42% rate could dent
States’ faith in the Centre’s claims of cooperative federalism. The rollout of the goods and services tax, which
marks a new chapter in tax administration with both the Centre and States working together through the GST
Council, makes the challenge trickier. The Centre is committed to compensating States for any revenue losses
arising out of GST implementation till June 2022, thus covering nearly half the period for which the
Commission is to recommend a formula. Its mandate includes formulating performance-linked incentives for
States on a range of desirable outcomes such as attaining a replacement rate in population growth, deepening
the GST net and improving the ease of doing business. Devising a fiscal nudge for development goals sounds
attractive, though the challenge would lie in quantifying the good from the ugly — especially when one has to
reward a State for showing ‘control or lack of it in incurring expenditure on populist measures’.
EDITORIAL
Island hopping — on Maldives-China FTA

The Maldives’ FTA with China signals a drift in Delhi-Male ties
T he announcement of a free trade agreement between the Maldives and China is another sign of Beijing’s
success in its outreach in South Asia. After its push for maritime linkages across the Indian Ocean, including
naval exercises and port projects, and for the enhancement of regional connectivity through the Belt and
Road Initiative, China seems to be ready to ramp up business ties across South Asia. China already has an FTA
with Pakistan, and is exploring or negotiating FTAs with Bangladesh, Sri Lanka and Nepal. The negotiations
with the Maldives took about three years and were completed in September this year; it was ratified
overnight by Parliament in Male. The agreement is expected to be signed this week, during President Abdulla
Yameen’s first state visit to China. While New Delhi has made no public statement, it has reportedly made its
displeasure known, particularly on the speed and stealth with which the negotiations were completed.
However, apart from the actual FTA, the rapid growth in China-Maldives ties has not been hidden from
anyone. This is driven by massive infrastructure projects, including the development of Hulhule island and
the “Friendship” bridge connecting it to Male. Apart from investments of $1 billion, Chinese companies are
exploring tourism prospects in the Maldives, leases to resort islands, and reclamation projects.
While this can be seen as a natural outcome of the Maldives’ development plans, there are reasons for India to
worry. The Yameen government also said this week that it is not satisfied with the working of the FTA with
India. That statement, made by the Fisheries Minister at a press conference in Colombo, is likely to be
discussed in detail between New Delhi and Male. Second, the manner in which the FTA was rushed through
Parliament in a matter of minutes at midnight, with opposition members complaining they had not received
enough notice, suggests a haste that would naturally worry India. The move also shows that the Yameen
government is not inclined to pay much heed to international concerns over internal unrest. One reason for
Mr. Yameen keeping India out of the loop on the FTA talks may be New Delhi’s new policy of engaging with
the Maldivian opposition, especially former President Mohammad Nasheed. The biggest worry for India is
that the FTA will draw the Maldives more closely into China’s security net. Although Mr. Yameen has
categorically stated that the Maldives will remain a “demilitarised zone”, there are concerns that the PLA-
Navy might be looking for a military base in the islands linked to projects in Djibouti, Gwadar and
Hambantota. The docking of three Chinese naval warships in Male harbour in August, the first such “goodwill
visit”, was significant in this respect. China’s growing presence in the Indian Ocean presents a challenge to
India as it looks to define its place in the U.S.-led “Indo-Pacific” realignment.
EDITORIAL
Unwavering caution — on RBI holding repo rate

The RBI’s decision to hold rates reflects its expectations of faster inflation
F or the Reserve Bank of India there is just one economic indicator that dominates its policymaking
calculus: price stability. With inflation-targeting as its main mandate — the consensus position that was
articulated when the RBI Act was amended in May 2016 was that “price stability is a necessary
precondition to sustainable growth” — the Monetary Policy Committee (MPC) has opted yet again to keep
interest rates unchanged. It is not hard to follow the rationale. Price gains as measured by the Consumer
Price Index had accelerated to a seven-month high in October and the RBI’s survey of household
expectations for inflation over both the three-month and one-year horizons showed a “firming up”. The
RBI’s bimonthly policy statement also spelt out the data points and trends that informed its decision-
making. For one, the moderation in core inflation in the first fiscal quarter has largely reversed. Price
gains excluding the volatile food and fuel categories are particularly at risk from “the staggered impact of
HRA increases by various State governments” that could push up housing inflation in 2018 and generate
second-order ripples. Given India’s reliance on imports for a bulk of its fuel needs, the latest OPEC
decision to maintain output cuts to keep global crude oil prices from softening can hardly provide much
comfort.
Taking into account all factors, including some that may lend respite, such as the wide-ranging cuts to
the goods and services tax rate, the RBI raised its estimate for inflation over the third and fourth fiscal
quarters by 10 basis points from its October projection: headline CPI inflation is now expected to
accelerate and range between 4.3% and 4.7% in the second half. The MPC is, however, more confident
about the prospects for growth, concerns over higher oil prices and shortfalls in kharif crop output and
rabi season sowing notwithstanding. The Centre’s move to recapitalise public sector banks has won a vote
of confidence from monetary policymakers for its potential to revive credit flows. Buttressing the
confidence in the economy are the findings in the RBI’s survey, which posit an improvement in demand
in the services and infrastructure sectors and an uptick in the overall business environment in the
January-March quarter. Ultimately, though, the central bank has once again proffered a word of
circumspection to fiscal authorities: taken together, the farm loan waivers implemented by some States,
the partial reduction of excise duty and VAT on petroleum products and the GST rate cuts could result in
fiscal slippage with accompanying consequences for price stability. For the RBI, caution continues to
remain its credo.
Profer (verb)- hold out or put forward (something) to someone for acceptance.
(noun) - an offer or proposal.
Posit - put forward as fact or as a basis for argument.
Press Information Bureau
Government of India
Ministry of Finance
29-September-2016 18:33 IST
Monetary Policy Committee constitution under the Reserve Bank of India Act, 1934 notified.
The Reserve Bank of India Act, 1934 (RBI Act) has been amended by the Finance Act, 2016, to provide for a statutory and
institutionalised framework for a Monetary Policy Committee, for maintaining price stability, while keeping in mind the
objective of growth. The Monetary Policy Committee would be entrusted with the task of fixing the benchmark policy rate
(repo rate) required to contain inflation within the specified target level. A Committee-based approach for determining the
Monetary Policy will add lot of value and transparency to monetary policy decisions. The meetings of the Monetary Policy
Committee shall be held at least 4 times a year and it shall publish its decisions after each such meeting.
The provisions of the RBI Act relating to Monetary Policy have been brought into force through a Notification in the
Gazette of India Extraordinary on 27.6.2016. The factors constituting failure to meet inflation target under the Monetary
Policy Committee Framework have also been notified in the Gazette on 27.6.2016. The Government, in consultation with
RBI, has notified the inflation target in the Gazette of India Extraordinary dated 5th August 2016 for the period beginning
from the date of publication of this notification and ending on the March 31, 2021, as under:-
Inflation Target: Four per cent.

Upper tolerance level: Six per cent.
Lower tolerance level: Two per cent.
As per the provisions of the RBI Act, out of the six Members of Monetary Policy Committee, three Members will be from
the RBI and the other three Members of MPC will be appointed by the Central Government. In exercise of the powers
conferred by section 45ZB of the Reserve Bank of India Act, 1934, the Central Government has accordingly constituted,
through a Gazette Notification dated 29th Sept 2016, the Monetary Policy Committee of RBI, with the following
composition, namely:-
(a) The Governor of the Bank—Chairperson, ex officio;

(b) Deputy Governor of the Bank, in charge of Monetary Policy—Member, ex officio;
(c) One officer of the Bank to be nominated by the Central Board—Member, ex officio;
(d) Shri Chetan Ghate, Professor, Indian Statistical Institute (ISI) —Member
(e) Professor Pami Dua, Director, Delhi School of Economics (DSE) — Member
(f) Dr. Ravindra H. Dholakia, Professor, Indian Institute of Management (IIM), Ahmedabad— Member
The Members of the Monetary Policy Committee appointed by the Central Government shall hold office for a period of four
years, with immediate effect or until further orders, whichever is earlier.
********
DSM/KA
EDITORIAL
Capital crisis — on U.S. recognising Jerusalem as Israel’s capital

By recognising Jerusalem as Israel’s capital, the U.S. has endangered the peace process
U. S. President Donald Trump’s decision to recognise Jerusalem as the capital of Israel, despite
warnings at home and abroad, will worsen the Israel-Palestine conflict. Jerusalem, which houses holy
places of all three Abrahamic religions and is claimed by both Israelis and Palestinians, is at the very heart
of the dispute. Israel built its seat of power in West Jerusalem decades ago and occupied the East during
the 1967 war, and later annexed it. Palestinians insist that East Jerusalem should be the capital of their
future state. Even though there is a Congressional resolution in the U.S. urging Washington to relocate its
embassy from Tel Aviv to Jerusalem, previous American Presidents avoided doing so given the legal,
ethical and political implications of the issue, besides their commitment to a negotiated two-state
settlement. By breaking with this consensus, Mr. Trump has in effect endorsed the Israeli claims to East
Jerusalem. The decision will likely help him bolster his image among the Jewish lobby in Washington as
well as American evangelical groups, his social base. Israel is obviously happy. Though Arab countries
have voiced protest, they are unlikely to challenge an American decision. Mr. Trump’s move raises vital
questions about U.S. diplomacy in the region besides putting new roadblocks in the peace process. It
could be viewed as illegal as the Israeli claim that Jerusalem “complete and united” is its capital has been
declared “null and void” by UN Security Council Resolution 478, which also asks member-countries to
“withdraw diplomatic missions from the Holy City”. The U.S. is now acting against the spirit of this
resolution.
The Jerusalem gambit risks triggering another cycle of protests and repression in the Occupied
Territories. In 2000, Ariel Sharon’s visit to the al-Aqsa compound in the Old City sparked the second
intifada. Palestinians are expressing similar distress today. The peace process is not going anywhere,
while Israel has gradually been tightening its occupation and building new settlements. Hamas has
already called for a third intifada. In the longer term, Mr. Trump has just made the two-state solution
more complicated. The Israeli-Palestine conflict can be settled only after an agreement is reached on the
status of Jerusalem. The city was not part of Israel in the original 1947 UN plan to partition Palestine.
Jerusalem, which was supposed to be ruled by an international trusteeship, was conquered by Israel. This
is why the UN has not recognised it as Israel’s capital. With his latest announcement, Mr. Trump has
endorsed the occupation. And in doing so, he has undermined the U.S.’s position as a neutral broker in
Israeli-Palestinian talks. In short, he has dealt a blow to the peace process.
Intifada - legitimate uprising against oppression.
EDITORIAL
Defection, disaffection — on disqualification of JD(U) leaders from

RS
The Tenth Schedule is meant to curb opportunistic party-hopping, not stifle dissent
T he disqualification of dissident Janata Dal (United) leaders Sharad Yadav and Ali Anwar as
members of the Rajya Sabha was done in needless haste. Even if it did not violate the letter of the anti-
defection legislation, the Chairman of the Rajya Sabha, Vice-President M. Venkaiah Naidu, could have
considered whether it militated against its spirit. In his order, he cited the time-consuming procedural
requirements as the justification for not referring the issue to the committee of privileges. Mr. Naidu
took the view that all such cases should be disposed of within three months as any delay would be
tantamount to subverting the anti-defection law. But neither Mr. Yadav nor Mr. Anwar posed a threat to
any government to warrant such fast-tracking of the disqualification process. The decision under the
Tenth Schedule of the Constitution was sought to be justified on the basis of the argument that the two
members voluntarily gave up the membership of their party when they attended political rallies
organised by rival parties. Mr. Naidu went by the fact that the faction led by Mr. Yadav did not command a
majority within the JD(U) legislature party in the Rajya Sabha. Quite correctly, he did not accept the
contention of the two members that it was the JD(U) leader Nitish Kumar who had given up membership
of the party by quitting the Mahagathbandhan, the grand political alliance that had brought the party to
power in Bihar. It is current political affiliation and not past electoral alliance that is relevant to the
disqualification process. However, neither Mr. Yadav nor Mr. Anwar had disobeyed a whip or posed a
danger to the stability of any government. Given this, the Rajya Sabha Chairman could have taken the
assistance of the privileges committee before deciding the case. It is the fact that he did not exhaust all
the procedural avenues before him that has left him open to charges that his ruling has a political hue.
The JD(U) order is the latest in a long list of contentious decisions on disqualification by presiding
officers. In many State Assemblies, such disqualification proceedings have had an impact on the very
survival of the government, most recently in Tamil Nadu and Uttarakhand. Invariably, presiding officers
take a politically partisan view, necessitating judicial intervention. India’s party-based parliamentary
democracy requires MPs and MLAs to strike a fine balance between their roles as representatives of the
people and of a political party. As members of the legislature are elected by votes sought in their own
name and in the name of their party, the provisions of the Tenth Schedule should not be misused to stifle
dissent, whether inside or outside the House. The anti-defection law works best as an insurance against
violation of the people’s mandate for a party, but it cannot be made a tool to stifle all dissent.
EDITORIAL
Countering hate — on murder of migrant worker in

Rajasthan
Crimes like the Rajsamand murder must be swiftly prosecuted, explicitly denounced
I t is an ongoing investigation and very little can be said with certainty about the back-story
of the murder of a Bengali migrant worker in Rajasthan’s Rajsamand district. But from videos
shared on social media and initial information from the police, a few things are clear.
Mohammed Afrazul Khan, aged 50 and a long-time resident of Rajasthan, was hacked to death
and his body set on fire by a man identified by the police as Shambhu Lal Raigar, a former
marble trader. The videos, uploaded by his 14-year-old nephew, record Raigar as saying he
killed Afrazul to save a woman from “love jihad”, and ranting against Muslims, his ramble
ranging from films depicting inter-religious romance to the Babri Masjid. The police arrested
Raigar and his nephew and declared they would seek the death penalty for the former.
Director-General of Police O.P. Galhotra said that prima facie the murderer was of unsound
mind, a theory his family seems to subscribe to. While Rajasthan Chief Minister Vasundhara
Raje condemned the murder, saying the case should be prosecuted swiftly, the opposition has
embedded the crime in the larger majoritarian rhetoric of the Sangh Parivar. But irrespective
of whether the murder was the work of an isolated and unsound mind or a deliberate
conspiracy, it is important that the political discourse around it be responsible, and responsive
to the insecurity among migrant workers, especially those who are Muslims. It is imperative
that this case comes to trial swiftly and the guilty are brought to book; this will be a test of the
system’s capacity and intent to deal firmly with hate crimes.
Hate crimes are particularly serious because of their potential to provoke panic. The speed
with which the videos travelled on social media frames a difficult challenge for law
enforcement authorities. A temporary Internet shutdown that was enforced in Rajsamand
may appear unavoidable, but these are post-hoc measures and cannot prevent the problem of
provocative, even grisly, content being made available and even spreading online. Rajasthan’s
elected leaders would do well to go beyond denouncing the murder and its heinousness. Given
the sheer venality of the videos, their accompanying anti-Muslim rhetoric, and the likely
sense of insecurity they have caused, it is important for them to declare that they stand firmly
against sectarian hate crimes. Such crimes pose a very stiff challenge in a democratic society.
They may be isolated, they may be the handiwork of individuals acting on their own, but by
positioning one group (religious, racial, ethnic, gender) against another, the impact of these
crimes spills into the wider community. They heighten anxieties among the targeted groups,
and in the age of a polarised social media, they risk giving the unacceptable a perverse
acceptability. There is only one way to counter them: with a clear, unambiguous consensus
against hate.
Grisly - causing horror or disgust.
Venality - quality of being open to bribery or overly motivated by money
EDITORIAL
Rights & wrongs — on Transgender Persons Bill

The Centre should reconsider its draft Bill on transgender rights
I t will be a travesty of its avowed objectives if the proposed legislation to protect the
rights of transgender persons is not sufficiently rooted in a rights-based approach. News
that the Centre has brushed aside a parliamentary standing committee’s report and plans
to introduce the Transgender Persons (Protection of Rights) Bill without changes is a
disappointment. The process of recognising the rights of the community and seeking to
protect it by legislation gained momentum in 2014, when the Supreme Court gave a
landmark verdict in the NALSA case. The court recognised the community as a third gender
entitled to the same rights and constitutional protection as other citizens. It called for an
end to discrimination based on gender against those who do not conform to the gender
assigned to them at birth. Besides this negative right against discrimination, the court
ruled that transgender persons had a positive right to make decisions about themselves,
express themselves and participate in community life. It directed the government to
accord them ‘socially and educationally backward’ status so they could benefit from
affirmative action. In 2014, a private member’s Bill moved by DMK MP Tiruchi N. Siva was
passed in the Rajya Sabha. In the Lok Sabha, the government introduced its own Bill, which
was referred to the Standing Committee on Social Justice and Empowerment.
The Standing Committee, in its July 2017 report, suggested some modifications and
additions to the draft. In particular, it disagreed with the definition of ‘transgender’ in the
draft Bill and wanted modifications to bring it in line with global norms. The Committee
felt that the definition violated the principle that transgender persons have a right to self-
identification of their gender. Activists and experts have also rightly pointed to the absence
of any reference to the implications of criminal and civil laws that are based on the
traditional gender binary. While provisions on equality and non-discrimination would
promote equal opportunity, in the process the real benefit of reservation in jobs should not
be denied. Social legislation should not be merely benevolent; rather, it should be imbued
with an approach that extends to the marginalised sections the freedom, dignity and
autonomy that other citizens enjoy. In the domain of legislation, disagreements over drafts
are natural. It is up to the government of the day to adopt an inclusive approach towards
divergent opinions and come up with the best law possible. Ignoring the opinions of
experts and parliamentary committees does not help the process. The Centre should revisit
its draft and incorporate the inputs of the standing committee and an expert panel that
submitted a report in 2014.
EDITORIAL
Crunch time at WTO: On farm subsidies

India faces a tough challenge on farm issues at the Buenos Aires ministerial meet
A s leaders at the World Trade Organisation’s 11th biennial Ministerial Conference in

Buenos Aires seek to define the future contours of multilateral global trade, the challenges
the U.S. has mounted on the institution are impossible to ignore. Notable among the
proposals trade ministers will consider are those relating to new rules on farm subsidies,
the elimination of support for unsustainable fisheries, and the regulation of e-commerce.
With the backing of more than 100 countries, a joint proposal from India and China to
eliminate the most trade-distorting farm subsidies worth $160 billion in several
industrialised economies is arguably the most contentious agenda item at the Ministerial.
The two countries see this as a prerequisite to address the prevailing imbalance in the
Agreement on Agriculture, which unfairly benefits developed countries. But host
Argentina has cautioned that the joint proposal could potentially unravel negotiations.
Lending credence to such scepticism is the lukewarm stance the U.S. has adopted towards
the WTO over the past year, suggesting that the Ministerial meet should serve as a forum
for reflection rather than to shape substantive agreements. The other major dispute
centres on finding a so-called permanent solution to the large subsidies that underpin
public stock-holding programmes to bolster food security in the developing world. The G-
33 coalition — which includes Indonesia, China and India — seeks a complete exemption
from commitments to reduce subsidies, such as minimum support prices, from this
poverty-alleviation programme. New Delhi has declined to negotiate any more trade-offs
on this proposal at Buenos Aires, or accept calls for stringent transparency requirements to
monitor these schemes. The EU and Brazil have expressed broad support for the G-33
coalition’s position on public stock-holding programmes. But in return they seek
agreement on their own proposal to reduce trade-distorting subsidies on a percentage
basis, in both advanced and developing economies.
The existential crisis facing the WTO is heightened by U.S. President Donald Trump’s
combative approach to the multilateral institutional framework. Washington has been
exploring an alternative, unilateral route away from the formal dispute resolution
mechanism of the Geneva-based body to settle perceived and real trade conflicts with
partners. It has blocked fresh appointments to fill vacancies on the seven-member WTO
appellate body. The risk of Mr. Trump’s protectionist rhetoric translating into economic
barriers remains real. The response to that challenge is to make the gains of globalisation
more visible and its transient downsides politically less painful. Trade leaders gathered in
Buenos Aires can ill-afford to lose sight of this imperative.
EDITORIAL
Turn the page: On ANC’s future

Blight (noun) - plant disease, a thing that spoils or damages something.
UPDATED: DECEMBER 11, 2017 00:51 IST (verb) - spoil, harm, or destroy
South Africa’s ANC must seize the chance to pull away from the Zuma cabal
T his month South Africa will have a rare opportunity to break away from the difficult
political legacy of corruption and governance failures that have blighted its post-apartheid
years. At a conference during December 16-20, the African National Congress will pick its
candidate for party leader, and that person will go on to replace 10-year incumbent
President Jacob Zuma. Whoever Mr. Zuma hands over the reins of power to will be the
favourite to become the country’s next President in 2019. But he or she will also inherit a
troubled political system and a nervous, gloomy economy. Steadily rising unemployment,
now nearly touching 28%, has been the chief characteristic of what some describe as Mr.
Zuma’s “scandal-ridden decade” at the helm of the ANC. This has been, by most accounts, a
period during which allegations of grand corruption and cronyism multiplied
exponentially. Promising to root out this pervasive rot in institutional quality is one of two
leading candidates: Deputy President Cyril Ramaphosa, a policy centrist and firm member
of the party’s constitutionalist wing. The other serious candidate in the reckoning is
Nkosazana Dlamini-Zuma, Mr. Zuma’s ex-wife, who was a minister across several cabinets
and chair of the African Union.
Ms. Dlamini-Zuma, if she prevails, is expected to muddy the prospects of any investigation
into alleged murky financial dealings between Mr. Zuma’s son and three brothers of the
wealthy, Indian-origin Gupta family of South Africa, owners of a massive business
conglomerate that controls stakes in the computer equipment, media and mining
industries. She is also expected to be the candidate of continuity inasmuch as she will echo
Mr. Zuma’s call for “radical economic transformation” and continue policies that are
ostensibly aimed at redistributing control of resources to the nation’s relatively
impoverished black majority. Either way, her nomination will boost the forces of “state
capture,” or economic rent-seeking built on the marketisation of the South African state
itself. Already, there are 783 counts of corruption relating to a 1999 arms deal pending
against Mr. Zuma, yet no charges have been pressed. Similarly, despite reams of evidence
against the Guptas in a report by a former Public Protector, no enforcement action has been
forthcoming. According to Pravin Gordhan, who was fired as Finance Minister in March
2017, about $15 billion “has been looted” owing to undue influence of private interests
over public institutions. Yet even if Mr. Ramaphosa triumphs at the party conclave, the
troubles of the ANC may be far from over. With its overall popularity sliding, the party will
have to work hard to bring in the next generation of leaders, with a greater political stature,
if it wishes to realise a greater collective destiny for South Africa.
Staved off - avert or delay something bad or dangerous.
EDITORIAL
A massive victory: On Left Alliance landslide in Nepal

Nepal’s Left Alliance has the strength to deliver on governance
G iven Nepal’s mix of the first-past-the-post system and proportional representation, the final
picture of its new Parliament may take some time to be clear. But it is already evident that the Left
Alliance is on course to win more than 70% of the 165 parliamentary seats being decided by the FPTP
system. In the 110 seats allocated based on proportional representation, the Communist Party of Nepal
(Unified Marxist-Leninist) is leading, with its ally, the Communist Party of Nepal (Maoist-Centre), not far
behind. This is a decisive victory for the Left Alliance, the first such win for the leftists since Nepal turned
democratic in 1990. The UML had also emerged as the single largest party in the local elections held
earlier this year; with the Maoists joining them in the run-up to the parliamentary polls, the resulting
alliance has proved to be ideologically coherent. The UML expanded its support base beyond the hill-
towns and the Terai into the far-west and the upper-hills, while the Maoists, who had floundered in
elections since the formation of the Constituent Assembly in 2008, got second place and staved off
decline. For the Nepali Congress, the third-place finish is a severe blow, limiting it to its weakest
parliamentary presence. Others in the “democratic alliance” led by the NC, the plains-based Madhesi
parties and the former royalist parties that tried using the Hindu card, have also received a setback.
It is quite clear that the Left Alliance’s win draws from a yearning for a stable and lasting government
after years of political instability. This is reflected in the fact that 13 leaders have held the post of Prime
Minister since 1990. The Left Alliance has been seen as a natural coming together of like-minded forces
which had both given up on radicalism and were willing to work within the parliamentary system. With
such a big mandate, it is incumbent upon the alliance to finally focus on governance. Such
transformative moments have been visible in the past too — during the initial sitting of the Constituent
Assembly almost a decade ago when nearly the entire polity voted for Nepal to become a republic, or
when the peace process between the Nepali state and the Maoists was completed, or after the earthquake
in 2015 when political parties decided to quickly narrow down their differences on the Constitution in
order to work together. But they all lapsed into more political wrangling. The Left Alliance now has both
the opportunity and the strength to deliver on governance and development. As for the NC, the grand old
party of Nepal has much to introspect on. It was blindsided by the formation of the Left Alliance and its
own ragtag alliance was found to be wanting. It will now have to step up to play its role in opposition.
Fastidious - very attentive to and concerned about accuracy and detail.
- very concerned about matters of cleanliness.
- scrupulous, punctilious, meticulous, assiduous, sedulous, perfectionist
Chaperon - accompany and look after or supervise.

EDITORIAL
In an elite club: On India’s Wassenaar entry

Wassenaar Arrangement strengthens India’s credentials as a responsible nuclear power.
I ndia’s admittance into the Wassenaar Arrangement, a multilateral export control regime, as its 42nd
participating member is a big step forward in its quest for formal acceptance as a responsible nuclear power.
This has come a year after India made the request for membership. As a non-signatory to the Nuclear Non-
Proliferation Treaty (NPT), New Delhi has been at pains to convey to the international community that it
adheres to, and is invested in, a rules-based order. The Wassenaar Arrangement was founded in 1996, and is
clubbed with mechanisms such as the Nuclear Suppliers Group (NSG), the Missile Technology Control
Regime (MTCR) and the Australia Group. Its stated aim is “to contribute to regional and international
security and stability, by promoting transparency and greater responsibility in transfers of conventional arms
and dual-use goods and technologies, thus preventing destabilising accumulations.” India’s Wassenaar
success at the Vienna plenary meeting last week presumes a broad acceptance among its members of the
country’s credentials as a fastidious adherent to export controls. It comes on the heels of membership last
year of the MTCR. Ever since India signed the 123 Agreement in 2005, the underlying assumption was that
the United States would help chaperone New Delhi into global nuclear acceptability after it separated its civil
and military nuclear programmes and plugged the loopholes to prevent diffusion of nuclear materials and
technology in a way that is demonstrably in line with best practices followed by the members of the NSG.
ALSO READ
However, over the past couple of years it has become evident that Delhi has to do most
What is
Wassenaar of the heavy lifting to gain a seat at various global high tables. The Wassenaar
Arrangement?
Arrangement membership is also a lesson on the need for quiet diplomacy in sensitive
nuclear issues, compared to the botched attempt to gain entry to the NSG last year.
While India’s efforts at the NSG were stopped by China, which is not a member of the
Wassenaar Arrangement, raising the pitch publicly at the time came with costs. It made
the task of forging a consensus on membership to the NSG more difficult. And when
that attempt failed, it gave the setback the appearance of being significantly more
insurmountable. Nonetheless, now that more and more countries are signing on to India’s steadily
strengthening credentials in the nuclear area, there is hope that a fresh momentum will be imparted to a
future bid for the NSG. It will not be easy. The Australia Group, which focusses on biological and chemical
weapons, may be easier to crack given that China is not a member. But meanwhile, the Wassenaar
Arrangement will embed India deeper in the global non-proliferation architecture and enable access to
critical technologies in the defence and space sectors.
EDITORIAL
Starting over: On Rahul’s elevation

Rahul Gandhi’s task as Congress chief is more challenging than that of his predecessors.
R ahul Gandhi spent so many years stepping up to become president of the Congress party that once
he was elected unopposed, the biggest surprise remained the timing: in the middle of an Assembly
election campaign in Gujarat, Prime Minister Narendra Modi’s home turf. Indeed, after the devastating
blow to the Congress in the 2014 Lok Sabha election, and other electoral reverses since then, it was a bold
decision — a signal that he is in for the long haul and that he is going to be undeterred by an election
result that pundits, at least in the early days, had all but given to the Bharatiya Janata Party. No matter
which way the result goes on December 18, Mr. Gandhi has made it clear that the responsibility of the
party’s success rests on his shoulders and that there is no one but himself to blame for any missteps. That
he would take over as president was clear since his mother Sonia Gandhi’s gradual retreat, but with a
mere 18 months to go before the next general election, Mr. Gandhi doesn’t have the luxury of a great deal
of time in reversing the party’s political fortunes. Given the personality cult that attaches itself to the
Gandhis in the party, with every appointment and gesture read to see who’s in and who’s out, Mr. Gandhi
will send the first signal about his leadership qualities by the speed and professionalism with which he
constitutes his A-team. His swiftness in suspending family loyalist Mani Shankar Aiyar was an early
indication of decisiveness and drawing a red line for partypersons.
Leadership is vital for the Congress to address its three big challenges: reviving the party organisation;
firming up alliances; and formulating a cohesive programme as the main opposition party that is looking
for another chance to govern India. Historically, once the Congress is edged out of a two-party contest in a
State, its local organisation tends to fray. With the party ruling in half-a-dozen States and running at
third or lower place in big States such as Uttar Pradesh and smaller terrains like Delhi, the challenge is
obvious. Alliance- formation has remained reactive since 2014 and Mr. Gandhi will have to forge
decisions on pacts with regional parties, somewhat similar to what Ms. Gandhi did painstakingly before
the 2004 election. A transitional moment such as the leadership change also gives the Congress an
opportunity to bring its offshoots, such as the Trinamool Congress, into an understanding. All of this will
be easier achieved if the Congress can articulate its outlook and agenda. It needs to spell out where it
stands on the economy, social inclusion, minority rights, foreign policy, welfare. Simply reacting to the
Modi government or being un-Modi will not suffice.
Edify - instruct or improve (someone) morally or intellectually.
educate, instruct, teach
Rancour - bitterness or resentfulness, especially when long standing.
EDITORIAL
Unedifying campaign: On Gujarat polls

The Gujarat election campaign was marked by more heat than light
T he Gujarat election campaign, the second and last phase of which concluded on Monday, was high on
decibels and low on substance. Election campaigns often generate more heat than light, but this one was
riddled with a string of controversies, which served to deflect attention from the real issues, particularly
those relating to Gujarat’s development. For much of the campaign, the focus was on such things as Rahul
Gandhi’s religious identity, a rash and intemperate remark against Prime Minister Modi, and more broadly on
personalities rather than issues. This was odd given that Mr. Modi swept the 2014 general election on the
promise of expanding the so-called Gujarat model of development to other parts of the country. Ironically,
very little was heard of the State’s record on the economic front during the campaign, which ended on a
bizarre and jarring note — with the Prime Minister accusing the Congress of colluding with Pakistan on the
Gujarat election. This accusation was made on the basis that the Pakistan High Commissioner and its former
foreign minister had attended a dinner at which some Congress leaders, including former Prime Minister
Manmohan Singh, were present. The allegation that the meeting was held in “secret” is laughable given the
presence of a clutch of political leaders, diplomats and journalists, not to mention a former Army Chief of
Staff and a former Vice-President. A stung Manmohan Singh has exposed the irresponsibility in painting
such a meeting as an act of collusion with foreign officials.
It is not clear whether the unseemly edge and rancour in the campaign rhetoric was a consequence of the
perception that this would be a closely fought election, as some pollsters have predicted. But there is no
denying that for both parties there is a huge stake riding on this Assembly election. For the Congress, which
was charged with adopting a soft Hindutva approach following soon-to-be Congress president Rahul
Gandhi’s frequent visits to temples, a win here could reverse the political narrative of the last few years. The
stakes for the BJP are arguably even higher — a narrow victory in the home turf will be insufficient to prevent
the perception of a decline given the performance in the 2014 general election, when the party won almost
60% of the popular vote. To demonstrate that it retains the political momentum, the BJP would have to, at the
very least, better its 2012 Assembly election performance, when it won 115 of the 182 seats. The big question
is whether it can pull this off in the face of a new caste coalition that the Congress has cobbled together,
spearheaded by the influential Patidar community, which seems palpably angry. Given Mr. Modi’s personal
stake in the BJP retaining his home State and Mr. Gandhi’s need to prove himself as the Congress president,
this Assembly election has had the character of a presidential contest — something that explains the huge
interest in the result.
EDITORIAL
The outsider: On adultery law

The real issue about our adultery law is whether it should be treated as a crime
T here is no doubt at all that a reconsideration of the law on adultery is long overdue. By agreeing to
have another look at the constitutional validity of Section 497 of the Indian Penal Code, under which men
can be prosecuted for adultery, the Supreme Court has re-opened a question that has been decided thrice
in the past. This time the court will have to do more than pronounce on whether the provision
discriminates against men on the basis of gender and gives an unconstitutional exemption to women.
While agreeing to issue notice to the government, the Bench has observed that the provision is archaic. It
has further noted that in a case of adultery, one person is liable for the offence but the other is absolved,
and that the concept of gender neutrality, on which criminal law normally proceeds, is absent. The court
has also noted that once the consent or connivance of the husband is established, there is no offence of
adultery at all. It rightly describes this as subordination of a woman and something that “creates a dent
on the independent identity of a woman”. In the past, the Supreme Court has emphasised that a married
woman is a “victim” and the man is “the author of the crime”. It has treated the exemption given to
women as a special provision that has the protection of Article 15(3). It has rejected the argument that it
is discriminatory by pointing out that neither a man nor a woman can prosecute their disloyal spouses. It
is only the ‘outsider’ to the matrimonial relationship who can be prosecuted, and that too by the
aggrieved husband alone. This is made clear in Section 198(2) of the Code of Criminal Procedure, a
provision also under challenge.
The matter now before the court goes beyond the limited question of the culpability of women involved
in a relationship outside their marriage. It raises the related question whether there is an implicit
subordination of the will of a woman. However, merely positing the issue as one of discrimination in the
way the law treats two parties in a consensual relationship because of their gender is misleading. The real
problem is the very fact that adultery remains a crime in the form of an archaic colonial era provision.
Many countries across the world do not treat it as an offence any longer. In 2012, a United Nations
Working Group on laws that discriminate against women wanted countries that treat adultery as a crime,
to repeal such laws. It is one thing for adultery to be a ground for divorce, a civil proceeding, and quite
another for it to be a basis for incarceration. It will be a travesty if in the name of empowering women the
ambit of the criminal law is extended to cover both genders. The correct course will be to dispense with
this archaic provision altogether; it serves no real purpose in the criminal statute.
EDITORIAL
IS was?: On Islamic State’s defeat

The Islamic State may have lost territory, but it still exists
I raqi Prime Minister Haider al-Abadi has declared victory over the Islamic State, signalling an end to
more than three years of battle that saw Iraqi troops first fleeing without their weapons and then, with
foreign assistance, regrouping to recover lost territory. At the peak of its influence, the IS controlled
almost a third of Iraq, including Mosul, its second largest city. Mr. Abadi, who took over as Prime Minister
in September 2014 when the country was in the middle of the civil war, adopted a cautious, gradualist
approach with direct help from the United States and Iran to take on the IS. Iraqi troops first stopped the
IS’s southward expansion in the suburbs of Baghdad and then started offensive operations in the group’s
small pockets of influence. After capturing cities such as Ramadi and Fallujah, Iraqi troops moved to
Mosul, the jewel in the IS crown. Iran-trained Shia militias and Kurdish Peshmerga troops joined the
ground battle, as the U.S. provided air cover. When Mosul was liberated in July after nine months of
fighting, it was arguable whether a final victory over the IS was just a matter of time. Mr. Abadi claims
Iraqi soldiers have established control over the vast Iraq-Syria border after ousting IS fighters from small
border towns where they had retreated after losing urban areas.
For Mr. Abadi and the Iraqi military, this is a moment of both relief and accomplishment. But it may be
far too simplistic to conclude that Iraq is totally rid of the IS threat. Perhaps a greater challenge they face
is healing the wounds of the civil war. Iraq is a divided country today. The resource-rich south, which is
mostly Shia, supports the government and is relatively peaceful. In the war-stricken north and west,
there is no doubting that people feel alienated from the Shia-dominated government in Baghdad. The
Kurdish Autonomous Region has already held a referendum, against the wishes of Baghdad, in which a
majority of voters supported independence. If the government fails to tackle these divisions and lets
parts of the country drift into anarchy again, groups like the IS will find it an easy breeding ground and
regain a footing. The IS may have lost territory, but it would be blind to deny that the group doesn’t exist
anymore. It is not known, for instance, what happened to its self-declared Caliph, Abu Bakr al-Baghdadi.
In Syria it still controls territory, even if it is under growing pressure of Russian-American bombing and
Kurdish attacks. In 2006-07, al-Qaeda in Iraq had faced similar military setbacks. But when Iraq’s
sectarian rivalry took a turn for the worse and civil war broke out in Syria, it regrouped and reinvented
itself as the IS. Mr. Abadi has to see that this doesn’t repeat itself. In order to do so, he must, besides
keeping the military on alert, reach out to the country’s disaffected Sunnis and Kurds. Only a united Iraq
can hold off the resurrection of the extremists.
Pall - a dark cloud of smoke, dust OR
a cloth spread over a coffin
EDITORIAL
Revival risks: On economy woes

With prices rising and manufacturing slowing, the economy is still not out of the woods
T he Centre’s bid to dispel the pall of gloom over the economy has been helped in recent weeks by a
sovereign rating upgrade from a global agency and a sharp improvement in India’s rank on a World Bank
index for ease of doing business. More significantly, the economy clocked a growth of 6.3% in the second
quarter of this year, after slowing for at least four quarters. But official data for the third quarter (October to
December) so far suggest that the economy is still not entirely out of the woods and fresh headwinds, such as
rising oil prices, could upset the fragile recovery. Manufacturing growth, driven by restocking by producers
after the rollout of the goods and services tax, was a major factor in the second quarter growth pick-up. After
two months of robust 4%-plus growth, industrial activity however slipped in October, with the Index of
Industrial Production reflecting just 2.2% growth. October was a festive month but consumer durables
production contracted by nearly 7%, mining was virtually stagnant, and manufacturing growth moderated to
2.5% from 3.8% last year. This coincides with exporters seeing a 1.1% slump in shipments in October, after
growing at an average of over 13% in the second quarter. It is also borne out by the nearly 10% drop in GST
collections that month compared to September. The IIP has now grown just 2.5% in the first seven months of
2017-18, compared to 5.5% in the same period last fiscal.
If the spectre of slower growth with weak exports at a time when global trade is recovering is not worrying
enough, with job creation still to pick up, the latest inflation data set too is cause for concern. Prices at the
consumer level rose at the fastest pace in 15 months this November, with inflation touching 4.88%, up from
3.6% in October and just 1.5% in June. This reflects a broad-based price rise under way, although it is led by
fuel inflation (at 7.2%, from 6.1% a month ago) and food inflation (4.4%, from 1.9% in October). Within food,
rising onion and tomato prices pushed vegetable inflation to a 16-month high of 22.5%; inflation in egg
prices quickened from 0.8% in October to 8% in November. While some of this food inflation could wane in
the coming months, there is greater concern about the rise in core inflation (excluding food and fuel) and
inflation imported through high global prices. On Tuesday, oil prices breached the $65 a barrel mark for the
first time in over two years. The government faces difficult choices. Slashing fuel taxes could calm inflation,
but it would hit revenue collections that are already uncertain owing to GST deadline extensions. Not doing
so would leave less room for the central bank to lower interest rates. As the Economic Survey said, oil at $60-
65 could hit consumption and public investment and dent private investment further. That is not a path to a
sustained revival.
EDITORIAL
House rules: On May’s Brexit defeat

British MPs hand Prime Minister May a defeat by asserting their role in Brexit decisions
T he adoption in the House of Commons of an amendment to the draft bill on Britain’s withdrawal from
the European Union has handed Prime Minister Theresa May a stinging defeat. But the legislative
development on Wednesday, with Conservative rebels joining ranks with Labour and Liberal Democrat MPs,
is an important guarantee of parliamentary scrutiny over the shape of London’s future relationship with the
EU. The provision will ensure that legislators have a voice in finalising the terms of the exit agreement. The
significance of that role cannot be exaggerated, given that the residency status of millions of U.K. and EU
citizens in a post-Brexit scenario are at stake, besides London’s financial liabilities to the bloc. No less vital is
the future of the border separating Northern Ireland from the Irish Republic. The difficult compromises Ms.
May will be required to strike in the months ahead will now oblige her to be accountable to her party and to
Parliament. The issue of whether parliamentary sovereignty trumps executive prerogative in determining
the terms of London’s exit has existed since the June 2016 referendum. The government maintained all along
that the matter was in the domain of executive authority once the popular will on Britain’s EU membership
had been obtained in the plebiscite. The predominantly pro-European MPs, across party lines, have deemed
otherwise. They have held it is in the fitness of things that the legislature should be taken into confidence on
Brexit.
Following the referendum, a similar controversy had arisen over whether Parliament should be consulted on
triggering Article 50 of the European treaty on leaving the union. A judicial challenge to the government’s
position was upheld in January by the country’s Supreme Court. The ruling by a majority held that since
domestic laws would be altered following Brexit, a parliamentary vote on initiating that process was
mandatory. Another test looms in Parliament next week pertaining to differences over the March 2019
deadline for Brexit, which critics fear may not leave enough room to finalise the precise terms of the
departure. The government’s apparent lack of transparency on these fundamental questions sits uneasily
with the emphasis of the Leave campaigners’ populist rhetoric on taking back control of their country. Their
current confusion owes in large measure to the complexities of deciding how far away they want to go from
the EU in economic and political terms. The defeat on Wednesday is indeed a big victory for the opposition,
eager to capitalise on the Conservatives’ slender majority in the House of Commons. And with referendums
becoming a popular tool worldwide, it nuances the larger debate on whether such votes should override the
will of the legislature, or guide it.
EDITORIAL
Stalemate at WTO: On U.S. obstructionism

U.S. obstructionism has worsened the developed-developing countries divide
T he 11th biennial ministerial conference of the World Trade Organisation ended in a stalemate, with
countries divided along industrial and developing lines. India is seeing the outcome as a partial success;
none of its “offensive” interests were achieved, but its “defensive” interests remain protected. While
India’s push to ensure a consensus around a ‘permanent solution’ to the public stockpiling of food for
food security purposes was thwarted by the U.S., the “peace clause”, under which countries would not
lodge complaints against developing country subsidies to meet their food security needs, remained in
place. The failure of industrial countries to fast-track e-commerce talks, and commitments that
reductions in fishing subsidies would not be discussed at least until the next ministerial in 2019, are
being seen by India as points in its favour. The rift between advanced economies and the rest was
apparent. Industrial countries have been keen on moving the agenda forward from development, which
was the stated focus of the Doha Round that began in 2001. Developing countries want Doha Round
commitments to be fulfilled before topics of interest to the West — such as e-commerce and market
access for small enterprises — are discussed. The U.S. has said it wants to clarify its understanding of
“development”, and contended that members were using it to gain exemptions from rules, and that some
of the richest countries (presumably in absolute and not per capita GDP terms) were claiming this status.
It also issued a joint statement with the European Union and Japan, aimed primarily at China, on trade-
distorting practices such as over-capacity and mandatory technology transfer policies, while India and
China submitted a proposal to end the trade-distorting farm subsidies of Western nations.
President Donald Trump’s disdain for multilateral forums and agreements, which he sees as
opportunities for countries to take advantage of America, was reflected in Buenos Aires. U.S. Trade
Representative Robert Lighthizer left before the conference concluded, leaving a leadership vacuum that
his EU counterpart, Cecilia Malmström, unsuccessfully tried to fill. In fact, since Mr. Trump assumed
office, the administration has blocked the reappointment of judges to the appellate body of the WTO,
despite the U.S. being a frequent user of the dispute resolution mechanism. India rightly argued that
while its GDP may be growing, the country has hundreds of millions living in poverty and without food
security. While India can, and must, develop a multi-pronged approach to end hunger, it is correct to seek
clarifications that its sovereign right to provide subsidies for food security is not compromised by the
WTO. What has become clear in Buenos Aires is that India cannot rely on the Trump administration for
support on crucial trade issues at multilateral forums.
EDITORIAL
Feed the cure: On paying TB patients

Giving TB patients money for an enhanced diet is a good step — but oversight is crucial
T he Central TB Division has said the government would hand over a sum of ₹500 a month to each of
India’s 35 lakh diagnosed TB patients in order to strengthen the fight against the disease. The funds are
intended to offset the loss of wages due to TB, and to help with travel and nutrition. Yet, much more
needs to be done to protect TB patients from the effects of malnutrition, which has a complicated
relationship with TB. An early study from a prisoner-of-war camp in Germany in the 1940s showed that
Soviet inmates, who didn’t receive extra rations from the Red Cross as their British counterparts did, were
around 16 times more likely to develop the disease. Since then, evidence linking low body mass index and
nutritional deficiencies with higher rates of disease has piled up. It is a vicious cycle, because TB itself
triggers malnutrition by hurting the patient’s appetite. One calculation suggests that half of all adult
Indian TB patients get the disease due to malnutrition. Sadly, despite the evidence on the TB-diet link, it
is still not clear how best to fix the problem, given the lack of research into interventions that can speed
up recovery. A few small-scale studies have looked at cure rates among those patients consuming cereal-
lentil powders or micronutrients such as Vitamin A and zinc, with mixed results.
But lack of data isn’t a justification for inaction. In a guidance document this March, the Central TB
Division proposed extensive interventions to tackle the problem. One recommendation was to double
the rations under the public distribution system to families of TB patients, so that they are less likely to
contract the disease. Because TB patients also need a high protein intake, the document recommends a
second set of supplements, such as oilseeds and dried milk powder, which they wouldn’t have to share
with the family. Given these recommendations and the scale of India’s malnutrition problem, the
proposed assistance of ₹500 may not make any dent, especially if patients are not counselled on their
ideal diet. India needs to fine-tune these interventions with further evidence so that policy can be more
precisely targeted. Do pre-packaged protein powders work better than rations of cereals and pulses? Do
TB patients need more of certain vitamins and minerals than healthy people do? These are difficult
questions to answer. A recently announced 2000-subject study by the Indian Council of Medical Research
in Jharkhand may go some way in plugging this knowledge gap, but more research is required. A better
diet is a no-brainer for an illness like this, historically called “Consumption” because of how it ate away at
patients. But understanding what constitutes such a diet, and making sure that patients get it, isn’t as
straightforward.
EDITORIAL
Divorce as crime: on instant triple talaq

Making triple talaq a criminal offence is unnecessary and possibly counter-productive
T he Centre’s proposal to make instant triple talaq an offence punishable with three-year imprisonment
and a fine is an unnecessary attempt to convert a civil wrong into a criminal act. By a three-two majority, the
Supreme Court has already declared, and correctly, that the practice of talaq-e-biddat, or instant divorce of a
Muslim woman by uttering the word ‘talaq’ thrice, is illegal and unenforceable. While two judges in the
majority said the practice was arbitrary and, therefore, unconstitutional, the third judge ruled that it was
illegal because it was contrary to Islamic tenets. Its consequence is that the husband’s marital obligations
remain, regardless of his intention in pronouncing it. When Parliament enacts a law to give effect to the
judicial invalidation of talaq-e-biddat, it must primarily ensure protection to Muslim women against its use.
Although the details are not yet available, the proposed Muslim Women (Protection of Rights on Marriage)
Bill, 2017, appears to have provisions for maintenance or subsistence allowance to the wife and children in
the event of triple talaq being pronounced. It seeks to preserve the woman’s entitlement to custody of her
children. While these are welcome and necessary features of a law aimed to protect the rights of Muslim
women against arbitrary divorce, it hardly requires iteration that the civil character of these aspects of
marital law must be preserved.
Instant triple talaq is viewed as sinful and improper by a large section of the community itself. Therefore,
there can be no dispute about the need to protect Muslim women against the practice. But it is also well
established that criminalising something does not have any deterrent effect on its practice. That there have
been 66 cases of its use after the Supreme Court verdict only underscores the need for protecting women
against desertion and abandonment, but is it justified to send someone to jail? Also, the fine amount under
consideration could as well be awarded as maintenance or subsistence allowance. The All-India Majlis-e-
Ittehadul-Muslimeen president, Asaduddin Owaisi, has argued in a letter to the Union Law Minister that
there is no need for a fresh criminal provision when existing laws, under Section 498A of the Indian Penal
Code or provisions of the Protection of Women from Domestic Violence Act, 2005, already allow the
prosecution of a husband for inflicting physical or mental cruelty, emotional and economic abuse, and for
deprivation of financial resources. Regardless of whether instant talaq would fall under any of these forms of
cruelty or domestic violence, criminalising it risks defeating the objective of preserving the husband’s legal
obligations, and the payment of maintenance. The Centre would do well to reconsider its draft and limit its
scope to providing relief to women, instead of creating a new offence out of a civil matter.
EDITORIAL
A measured leap: on planetary system

The amazing story of the discovery of a planetary system
S cientists have announced the discovery of two new exoplanets, Kepler-90i and Kepler-80g.
Exoplanets, or planets outside our solar system, are routinely being discovered, with the number of those
that have already been found now standing at 3,567. But this announcement by the National Aeronautics
and Space Administration (NASA) of the U.S. is particularly significant. First, with the discovery of the
planet Kepler 90i, orbiting the star Kepler 90, we now know of another star besides the Sun that has eight
planets orbiting it. Second, Christopher Shallue, a software engineer at Google, and Andrew Vanderburg,
of the University of Texas, Austin, have discovered it using a deep learning neural network — an artificial
intelligence tool that mimics the workings of a human brain. They “trained” their computer to analyse
light readings made by NASA’s Kepler Space Telescope, which are archived and made available for anyone
to use. During its mission from 2009 to 2013, the Kepler Space Telescope surveyed nearly 200,000 stars,
with 35,000 possible planet signals. The duo’s network was made to learn to identify true signals using
15,000 previously vetted signals. They then studied the weaker signals recorded from 670 star systems
that had multiple known planets orbiting them, finally coming up with this discovery. The network also
identified another Earth-sized exoplanet, Kepler 80g, orbiting the star Kepler 80. This is a very stable
system in which Kepler 80g and four of its neighbours are locked together in a so-called resonant chain.
Deep learning and neural networks have been used in other applications successfully, as in the AlphaGo
AI player of the Go game. This is not also the first time that automation has been used in identifying
exoplanets. After the initial years of their discovery, when the number of known exoplanets grew, the
need for automating the initial vetting process became clear. The preprint of the Shallue-Vanderburg’s
paper, to be published in The Astronomical Journal, mentions the Robotvetter program, the first attempt
at automating the process of rejecting false positives in the signal. The preprint describes the careful
process of doing away with the false positives and systemic blips before coming up with the true signals
— in this case, the two signals corresponding to Kepler 90i and Kepler 80g. It also indicates the caveats
and failure modes in the model where it needs to be improved before it can be used to function
independently. Here, then, is the takeaway — good science not only solves problems but also can take a
hard look at itself, at where and how it can improve. This is a leap for humankind, a measured leap.
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Swathe - a broad strip or area of something.
vast swathes of countryside
Palpable - tangible, perceptible
Ignominy - public shame or disgrace.
EDITORIAL
Win without the shine: on BJP's win in Gujarat and Himachal

The BJP won both Gujarat and Himachal Pradesh, but without bragging rights
I f winning were the only thing, then the BJP has plenty to cheer about in Gujarat, where it recorded a sixth
straight victory in what was practically a straight fight with its principal rival, the Congress. Together, with a
comfortable win in Himachal Pradesh, this may, on the face of it, seem like another step towards its stated goal
of a “Congress-mukth Bharat”. But, no. Whatever the BJP leaders may say, the victory — by an extremely slim
majority and well short of the 150-plus seats it aimed to win — is a setback. After all, Narendra Modi’s home State
was the centrepiece of the BJP’s campaign in the last Lok Sabha election, where it was sold to the rest of India as
the model for development. If Gujarat was the launch pad for the BJP’s national-level ambitions, it now seems to
have held out a ray of hope for a Congress desperately looking to revive its political fortunes. Not having won in
the State since 1985, the Congress put up its best showing in 32 years. Admittedly, the BJP was ahead by almost
eight percentage points, but at the end of the day — thanks largely to the swing towards the Congress in the
Saurashtra region — only about 20 seats separated the two parties. The Congress won by smaller margins in a vast
swathe of rural Gujarat, where there is a palpable agrarian distress; as for the BJP, its relatively bigger wins in
urban pockets were insufficient to convert its decent lead in overall vote share into a commensurate number of
seats. In Himachal Pradesh, the difference in vote share was smaller, seven percentage points, but the BJP won a
much higher share of the seats, close to a two-thirds majority. The caste or social alliances built by the Congress
yielded rich dividends in its strongholds, allowing it to close the gap. The Patidar Anamat Andolan Samiti led by
Hardik Patel gave the Congress an edge in the Saurashtra-Kutch region. Alpesh Thakor, leader of a grouping of
backward classes, and Jignesh Mevani, who organised Dalits against attacks by Hindutva cow vigilantes, won,
giving the Congress the appearance of support from a wider social base. But the Congress probably failed to
appear to be a cohesive formation with an alternative programme to challenge the BJP.
ALSO READ
If Gujarat shaded the BJP’s celebrations with a touch of grey, so in a way did Himachal
Pradesh. Despite the big win, the party faced the ignominy of seeing its chief ministerial
candidate, Prem Kumar Dhumal, lose to his Congress rival. In a State that has alternated
between the Congress and the BJP in the last three decades, the vote was arguably as much
How Gujarat was
won against the Congress as for the BJP. With both States under its control, the BJP can be
expected to push forward its reforms agenda with renewed vigour. It may well be tempted
to believe that neither demonetisation nor the flawed roll-out of the GST regime has
dented its support among traders and the middle class. But the heart-stopper in Gujarat has
given enough reason for it to rethink, do a reality check and reconnect with the remoter parts of India.
Emblematic - symbolic
Abominable - causing moral revulsion, hateful
Perfunctory - cursory, desultory, carried out without real interest, feeling, or effort.
Condign - (of punishment or retribution) fitting or deserved.
Discomfiting - feeling uneasy / embarassed
EDITORIAL
Speedy, decisive: on trial courts awarding death penalty

Are trial courts under societal pressure to award maximum punishment?
T wo crimes ended in death sentences for the principal perpetrators last week — one emblematic in
the way it sought to uphold caste pride and the other an abominable instance of sexual violence against
women. The High Courts of Madras and Kerala would decide later whether to confirm the death penalty,
but the trial courts have sent out a significant message that one need not always be cynical about the
country’s criminal justice system; that there are times when it responds well, and responds quickly, to the
cry for justice. In these cases, one involved the murder of Shankar, a Dalit youth, for marrying Kausalya,
who is from an intermediate caste, and incurring her family’s wrath. The other related to the rape and
murder of a Dalit law student by a migrant worker. Both crimes took place in the first half of 2016. For
Indian courts to render a final verdict within two years is unusual, therefore probably deserving of praise.
That the Sessions Court in Tirupur and the one in Ernakulam both imposed the maximum punishment
speaks of a commitment to rendering justice. This is a noteworthy and welcome departure from the
uninspiring record of tardy trials and perfunctory orders. The Tirupur trial will be remembered for Ms.
Kausalya’s courageous deposition, as an eyewitness and the survivor of a murderous attack, and as one
with an intimate knowledge of her family’s antipathy towards her slain husband. That she testified
against her parents as well as the dangerous gangsters hired by her father to commit the crime is a
commentary on her fortitude.
It is perhaps a sign of the times that both State governments bestowed considerable attention on
securing justice in these cases, getting the investigation supervised at a high level and appointing special
prosecutors. Given the public outcry over the two crimes, any other course would have been
unacceptable. In recent years, quick trials and condign punishment have become the order of the day.
Besides the ‘Nirbhaya’ gangrape and murder in Delhi, the Shakti Mills gang rape case in Mumbai and
the rape of a passenger by a Delhi taxi driver are significant instances. However, it is odd and discomfiting
that all such cases end in condemning the convicts to death. Trial courts appear to be under pressure to be
seen as ruthless and unwavering, resulting in their reflexively awarding the death penalty. In these two
latest cases, the superior courts may well reduce the sentences on a balance of mitigating and aggravating
circumstances. But one cannot ignore the core message that efficient investigation and speedy trials help
foster trust in the justice system.
Reflexive - as a reflex, without conscious thought

EDITORIAL
Transit gambit: on e-way bill mechanism for transport of goods

The Centre needs to do more to ease the shift to e-way bills for transport of goods
A lready grappling with the Goods and Services Tax transition, businesses are now anxious about how the
roll-out of e-way bills will pan out. Starting February 1, all inter-State movement of goods worth over ₹50,000
will be tracked with the introduction of the e-way bill system under the GST regime. All consignments moving
more than 10 km from their origin will require prior registration and generation of an e-way bill through the
GST Network, which will be valid for varying durations depending on the distance travelled. While a few States
have already imposed their own requirements for such bills since the GST roll-out in July, all States must
implement the bill system for capturing intra-State trade by June 1. Therefore, a fully integrated tracking
system for all taxable goods can be expected only then. This poses an interim headache for firms operating
across States, as they will now face differing compliance requirements for inter-State trade and intra-State
trade, depending on when individual States launch their own e-way bill systems. To be fair, inter-State
movement of goods was also tracked under the VAT (value-added tax) regime, but intra-State transactions were
not. Over 150 items of common use, including LPG cylinders, vegetables, foodgrain and jewellery, will be
exempt from such transport permits, which can be checked by designated tax officials by intercepting a
transporting vehicle. Goods moved on non-motorised conveyance, such as carts, have been left out.

ALSO READ
In October, the GST Council had decided to introduce e-way bills in a staggered manner
from January 1, with a nationwide roll-out on April 1, 2018. After easing the GST burden
on small businesses and exporters in its recent meetings, the GST Council’s decision on
Saturday to advance the implementation of e-way bills just two days after polling closed
GST Council cuts
tax rates on 213
in Gujarat signals that there are serious concerns on the tax collection front. After a
items; eating monthly ₹90,000 crore-plus inflow in the GST’s first three months, revenue in October
out to get
cheaper plummeted to just over ₹83,000 crore. And this was even before substantive tax rate cuts
made by the Council kicked in. With States claiming a revenue shortfall of about ₹40,000
crore so far under the GST, the Centre, which has to fill that gap, is also feeling the pinch. Finance Minister Arun
Jaitley, who faces a serious fiscal dilemma even before he presents the Union Budget in less than two months,
has said the next set of GST features, such as e-way bills and matching of invoices, will make tax evasion
difficult and bump up collections. Plugging revenue leakages is essential, and encouragingly, Karnataka’s e-way
bill experience in the first month saw very few glitches. Given industry’s nervousness, the government must
simplify the onerous rules proposed for e-way bills (a one-day validity for distances up to 100 km, for instance),
ensure that the IT backbone is robust, and make inspections the exception, not the norm.
EDITORIAL
Change in Chile
Its new president faces a tough economic task amid demands for a new Constitution
T he election of the centre-right Sebastián Piñera as Chile’s President in a run-off over the last weekend
comes at a critical juncture, with the country’s political boundaries in the post-Pinochet era being redrawn.
The two-party dominance characteristic of the past three decades has effectively ended, thanks to the system
of proportional representation brought in by the outgoing President, Michelle Bachelet. A direct fallout of the
electoral reform is the emergence of the left-wing Frente Amplio, which counts among its supporters the new
middle classes that shot to prominence during the South American commodities boom of the previous
decade. It romped home as Chile’s third largest political force in recent legislative elections, surprising
pollsters. Among the front’s priorities is the establishment of a constituent assembly to draft a new
Constitution, and thus break completely from the Pinochet years. To be sure, Mr. Piñera’s victory raises
expectations of the country’s return to the robust economic performance of his previous term during 2010-
14. An immediate challenge before him is Chile’s meagre growth rate, of below 2%, which is ascribed to the
failure of Ms. Bachelet’s welfarist economics.
ALSO READ
A particularly ticklish issue for Mr. Piñera, a former airline magnate, would be fulfilling
his poll promise to roll back labour reforms and enact corporate tax cuts. The sizeable
presence in Congress of the Frente Amplio as well as of splinter groups from the centre-
left coalition could limit room for manoeuvre. Any curbs on access to higher education,
Chile choosing
between
for instance, would run counter to the prevailing mood among the middle class, which
billionaire and wants further improvements to the overall standard of living. Chile’s mining lobby
ex-journalist for
president meanwhile wants regulations on permits to be eased, in order to capitalise on global
demand for copper, which accounts for a large share of the country’s exports. In his
second term, Mr. Piñera will have to walk a tightrope between the competing demands of the business
community and the upwardly mobile sections of the population. Along with the 2015 election of the
business-friendly Mauricio Macri as President in Argentina, Mr. Piñera’s return signals a further
consolidation of the centre-right in Latin America. The rightward swing is expected to spread across the
region, as governments scheduled to face the electorate in the coming months are mired in corruption
scandals. Economic consolidation is a critical priority in Latin America, still reeling under the effects of the
plummeting commodities markets in recent years. But governments may not be able to ignore demands that
the fruits of growth be distributed evenly.
Plummet - fall or drop straight down at high speed

EDITORIAL
Wait and watch: on U.S. security strategy

India should be wary of being drawn too tightly into the U.S. security embrace
I ndia has unequivocally welcomed U.S. President Donald Trump’s announcement of the National
Security Strategy (NSS) for his country during his tenure. To be sure, the positive words used in the
international section of the 55-page strategy paper represent an affirmation of India’s stature, and
acknowledge “India’s emergence as a leading global power”. It mentions plans to “encourage Indian
economic assistance in the region”, and outlines U.S. support to India’s “leadership role in Indian Ocean
security and throughout the broader region” as a priority. Mr. Trump’s views of China’s assault on the
“sovereignty” of South Asian nations and of Pakistan’s continued support to terror groups are closely
aligned with India’s concerns in the neighbourhood. It is significant that the U.S. has highlighted them.
In its response, New Delhi has “appreciated the strategic importance” given to India as well as the
common objectives that India and the U.S. now share. Predictably, the five countries singled out by the
U.S. for criticism have not been as warm in their response. China has accused the U.S. of pursuing what it
calls a “cold war mentality and the zero-sum game”. Russia has said that the strategy reeks of
“imperialism” as the NSS accuses China and Russia of using their military might to deny America access
to what it calls “critical commercial zones”. Pakistan, Iran and North Korea have also been dismissive.
India must be mindful, therefore, that in welcoming the U.S.’s categorisations of its security threats, it
doesn’t unthinkingly get swept into an American clinch. To begin with, the U.S. articulation of its
perceived challenges has swung wildly over the past year of the Trump administration. It would be wise
to await a stabilisation in Mr. Trump’s policies, or at least concrete action to back its words. For example,
while the U.S. has talked of countering China’s influence in South Asia, it has not backed this with actual
financial assistance for infrastructure critical to the region. Equally, while Mr. Trump’s words on Pakistan
and terrorism are sharp, the U.S. has yet to show its hand, either in terms of military action or
withholding of coalition support funds. While the U.S. strategy deals with global concerns, the past year
has seen American withdrawal from pacts ranging from the Trans-Pacific Partnership to the Paris
agreement on climate change. A tough U.S. security strategy can only be realised through cogent
policymaking — whether it is on Israel-Palestine, North Korea, Iran or Afghanistan, Mr. Trump has been
publicly at odds with his key advisers. A watch-and-wait stance is still India’s best option to preserve the
autonomous and pluralistic nature of its engagement in areas where the U.S. faces its greatest challenges.
Arduous - involving or requiring strenuous effort; difficult and tiring
EDITORIAL
Cleaning up: on reviewing laws in India

A permanent mechanism is needed to review laws and weed out the obsolete ones
I f law-making is a long and tedious process, it appears that unmaking existing laws is an equally
arduous task. How else does one explain the fact that until three years ago, a huge number of obsolete
Acts remained in the law books despite losing their relevance and utility? It has been only in the last
three years that nearly 1,800 obsolete laws have been repealed. In the latest round, 235 outdated Acts and
nine pre-Independence Ordinances have been repealed. These pieces of legislation may have been
relevant and necessary at the time they were introduced, but in the absence of a periodic review they
continue to burden the statutory corpus. These laws are archaic mainly because the social, economic and
legal conditions that required their enactment does not obtain today; they are also not in tune with the
progress of democracy since Independence. Among the Acts repealed are the Prevention of Seditious
Meetings Act, 1911, the Bengal Suppression of Terrorist Outrages (Supplementary) Act, 1932, and the
Preventive Detention Act, 1950. The country still has a body of ‘anti-terror’ legislation as well as
preventive detention laws. Although such laws remain in the statute books, these particular enactments
are redundant. Other questionable legal provisions, for example, those on ‘sedition’ or exciting
disaffection against the state, remain; so do ‘adultery’ and ‘sex against the order of nature’. Such obsolete
concepts and notions that underlie law-making also require an overhaul.
In a 2014 interim report, the first of four such reports on obsolete laws, the Law Commission noted that
the panel had been identifying Acts for repeal in many of its reports in the past. Its 96th and 148th
Reports recommended a good number of such laws. In 1998, the P.C. Jain Commission recommended the
withdrawal of a large body of legislation, and also noted that as many as 253 Acts identified earlier for
withdrawal still remained on the statute book. Nine ordinances issued by the Governor-General between
1941 and 1946, covering subjects such as war injuries, war gratuities and collective fines, are being
removed from the statute book only now. It is odd, even amusing, that the Howrah Offences Act, 1857,
the Hackney-Carriage Act, 1879, and the Dramatic Performances Act, 1876, have been in force well into
the current century. The problem with not removing archaic laws is that they could be invoked suddenly
against unsuspecting and otherwise law-abiding citizens. It is a welcome sign for good governance that
the present government is updating and trimming the statute book. Given that legislation is quite a
prolific activity, especially in the State Assemblies, it would be advisable to have a permanent
commission to review the existing body of law and identify those that require repeal as often as possible.
EDITORIAL
Austrian shift: on coalition government in Europe

The presence of the far-right in the governing coalition is rattling nerves in Europe
A ustria’s new coalition government of the conservative People’s Party and the extreme right
Freedom Party is a sobering reminder of the persistent danger of the populist upsurge across Europe. The
deeply eurosceptic and anti-immigrant Freedom Party registered its best performance in nearly two
decades in the October general election, polling about 26% of the vote. Such a showing may in effect have
ruled out a repeat of the outgoing coalition between the Social Democrats, which came second, and the
conservatives led by the new Chancellor, Sebastian Kurz. Moreover, reflecting a continent-wide erosion
of the political middle-ground, Mr. Kurz had openly embraced the Islamophobic and anti-immigrant
stance of the far-right in an attempt to shore up popular support in the run-up to the polls. A further
demonstration of the inroads the Freedom Party has made is the key ministerial portfolios it has bagged,
besides the vital position of Vice-Chancellor that its leader Heinz-Christian Strache has assumed. The
interior ministry, which holds the levers of immigration control, is in its hands, rattling nerves in Europe.
A similar concern arises from the charge of defence and foreign affairs, in view of the Freedom Party’s
strong affinities with far-right parties in Hungary and Poland and close ties with Vladimir Putin’s Russia.
When the Freedom Party under Jörg Haider went in for a power-sharing arrangement with the
conservatives around the turn of the century, Austria was briefly ostracised by the European Union. But
the political realities in 2017 are different. Following the populist tide that led Britain to vote to leave the
EU last year, and the extreme right Alternative for Germany’s 13% vote to enter the Bundestag in
September for the first time under the 1949 constitution, unsurprisingly Brussels has been more muted
in its response to the emergence of the new coalition in Austria. It has sought to emphasise the pro-EU
features in the governance agreement, even as the government’s explicit rejection of a referendum on
Vienna’s EU membership comes as a relief. The supposedly pro-European stance of an overtly anti-
immigrant platform is an obvious contradiction, as freedom of movement is one of the EU’s four
founding principles. Similar issues intended to strike at the root of deeper integration are bound to
surface when Austria assumes the six-monthly rotating presidency of the EU in the second half of 2018.
The electoral consolidation of the far-right in different member states will necessarily impede the
process of further integration. The priority for Europe’s leaders therefore ought to be to win greater
legitimacy for the project as it obtains now.
Adduce - cite as evidence.
EDITORIAL
Scam, or folklore? on 2G case verdict

2G acquittals call into question the political, investigative narratives of the past decade
W hat is illegal from the point of view of administrative law may not necessarily be an offence from a
criminal court’s perspective. The Supreme Court declared in 2012 that the allocation of 2G spectrum by the
Congress-led UPA government was illegal and an arbitrary exercise of power. It went on to cancel all 122
telecom licences allotted to companies in early 2008 during the tenure of A. Raja as Communications
Minister. With the trial court’s en masse acquittal of all those arraigned by the Central Bureau of
Investigation in the 2G spectrum allocation case, the claim that this was the biggest scam in India’s history
lies in tatters. Every ground that the CBI had adduced to prove that Mr. Raja manipulated the first-come,
first-served system to favour Swan Telecom and Unitech Wireless, among others, and helped them make a
windfall profit by offloading their stakes, has been rejected by Special Judge O.P. Saini. The immediate
fallout is that the Dravida Munnetra Kazhagam, to which Mr. Raja belongs, and its national ally, the Congress,
will at last be in a position to shake off the perception that they were irredeemably beset by corruption. The
Congress, in particular, is now in a position to reiterate that the spectrum allocation resulted in ‘zero loss’;
also, that its rule between 2004 and 2014 was not as scam-tainted as it was generally made out, a perception
that has impacted its electoral performance since. Attention will now turn to Vinod Rai, whose sensational
report as Comptroller and Auditor General, pegging the loss as a result of not auctioning spectrum at ₹1.76
lakh crore, contributed to the perception that a huge scam had taken place.
Many had argued that the figure was only notional. Mr. Raja said that not revising the entry fee and not
auctioning spectrum ensured cheaper telephony, increased tele-density and contributed to the sector’s
overall development. He has been undoubtedly vindicated, but there is a lesson for everyone in the long 2G
saga: public perception and audit reports cannot be the sole basis for criminal trials; investigating agencies
must carefully sift the available material before deciding to prosecute. Eliminating graft from public life is
not only about making allegations stick during election time, but also about diligent investigation and
efficient prosecution. The CBI’s image has taken a beating, with the court calling it out for its waning
enthusiasm in pursuing the case. There is a cloud over the present government’s commitment to fighting
corruption. It may yet have a chance to redeem itself, as the CBI has said it will appeal the verdict. An appeal is
in order given the sweeping dismissal of the CBI’s contentions, so sweeping that it dismisses, arguably a tad
too breezily, what the prosecution said were suspicious quid pro quo transactions. It is said that the folklore
about corruption is bigger than the actual incidence of corruption. Could this be true of the 2G ‘scam’ as well?
sift - put (a fine or loose substance) through a sieve so as to remove lumps or large particles
examine (something) thoroughly so as to isolate that which is most important.
EDITORIAL
Missing the pulse: on policies for farmers

Farmers, like investors, need predictability and coherence in government policies
I n what may be the Centre’s first strike in response to the rural distress read into the Gujarat Assembly
poll outcomes, a 30% customs duty has been slapped on the import of chana dal and masoor dal. The
official reasoning is clear. Cheap imports could hit farm incomes especially at a time when domestic
production of pulses is at a record high and a bumper rabi crop is expected. With an adequate domestic
stockpile of pulses and with international prices remaining low for a prolonged period, the Centre fears that
traders may still prefer to import some pulses rather than buy the fresh crop from local farmers at higher
prices. There has been a significant upsurge in imports, in the range of 30% to 46%, in four out of the first six
months of this financial year. Chana and masoor were the key contributors for India’s pulses imports rising
to over $1.6 billion between April and September, compared to $1.2 billion in the same period last year. The
value of chana imports in this period rose 373%, while masoor grew 204% year on year. In September,
masoor imports shrank 56% in value terms while chana imports grew by a little over 200%. Disaggregated
data for the last two months are not available, but overall pulses imports have cooled off since September,
with total pulses imports shrinking nearly 30% in October and about 38% last month.
The recent trend of moderation in imports indicates that the government may have moved too late to curb
them, but flawed market timing isn’t the real issue. Reflexively raising or breaking such tariff walls, as the
production cycle warrants, doesn’t add up to a serious long-term policy, which should be aimed at boosting
farm incomes and ensuring food security. In the case of a key protein source like pulses, import duties may
be counterproductive going forward. Just last year, while prices were soaring in the Indian market, Prime
Minister Narendra Modi signed a pact to double pulses imports from Mozambique. A bumper crop or two
will not diminish the importance of such deals in harder times. India has dal diplomacy interests with more
than 40 other countries, for whom the latest move will be of concern, especially since there is already 10%
import duty on toor dal and a hefty 50% duty was levied on yellow peas in November. Farmers, like
investors, need predictability and coherence in government policies. Just as a duty hike on electronic goods
won’t directly prop up local manufacturing or curb their consumption, hiking import duties on one dal or
another won’t make farmers better-off — though traders who accumulated cheaper imports will benefit.
The government must devise better means to shore up farm incomes without stirring up inflation or
upsetting carefully cultivated food security partnerships around the world.
EDITORIAL
Affirmative vote: on US' move on Jerusalem

The U.S. must heed the UN resolution and reconsider its Jerusalem move
T he UN General Assembly vote on a resolution calling for the final settlement of Jerusalem through
negotiations may have been pitched as a contest between Israel and Palestine; however, it became a
referendum on U.S. President Donald Trump’s decision to recognise the city as Israel’s capital. The final
outcome should force the U.S. to rethink its move, with 128 of the UNGA’s 193 member-countries voting for
the resolution, and only nine against it. Among those voting for the resolution that “deeply regretted” the U.S.
decision were its NATO allies, Germany, the U.K. and France, its Asian allies Japan and South Korea; its closest
neighbours Canada and Mexico chose merely to abstain. The overwhelming majority ignored Mr. Trump and
his UN Ambassador Nikki Haley’s threats that all countries that defied America would be ‘named and shamed’
and face cancellation of U.S. aid. The suggestion was that the U.S. would exact its revenge by refusing to
support these countries when they next need it at the UN. Israel showed deep derision for the world body,
which Prime Minister Benjamin Netanyahu referred to as a “house of lies”, while his UN envoy called the 128
countries “puppets forced to dance”. Such threats and epithets mark new lows in international diplomacy, and
Israel and the U.S. come away looking like churlish bullies for issuing them. With all its weaknesses, the UN is
a global collective, and it is imperative to acknowledge its mandate when such a large number of nations
speak in one voice. The U.S. only recently asserted its intention to uphold the international rules-based order
in its National Security Strategy document. It cannot now just walk away from both UN resolutions and its
national commitment to the Israel-Palestine peace process by unilaterally changing its stand on the status of
Jerusalem, without being accused of doublespeak.
Churlish - rude in a By voting for the resolution, India has affirmed its traditional policy in favour of a
mean-spirited and negotiated settlement for Jerusalem as part of a larger two-state solution for Israel and
surly way. Palestine. Although Prime Minister Narendra Modi avoided mentioning the contours
of the settlement during his visit to Jerusalem in July this year, India’s support to the
creation of a Palestinian state according to UN Resolution 181 (1948) was heavily
underscored in his statement to the UN in November, just days before Mr. Trump’s
decision. There had been some speculation that in the face of the U.S. threats over the
resolution, as well as Mr. Netanyahu’s impending visit to India in January, India would
dilute its support to those principles in favour of close strategic ties with both nations. In choosing to vote for
the resolution at the UNGA, India has shown a clarity of purpose that also aligns with the broad global
consensus.
Derision - contemptuous ridicule or mockery.
Epithet - Sobriquet, an adjective or phrase expressing a quality or attribute regarded as characteristic of the person or
thing mentioned.
EDITORIAL
Another fodder jolt: on Lalu Prasad's conviction

It is too early to write off Lalu Prasad, but recovery from this conviction won’t be easy
T wenty years on, the Bihar fodder scam is still hounding Rashtriya Janata Dal leader Lalu Prasad. In 1997, he
had to resign as Chief Minister after being charged with involvement in a conspiracy to fraudulently withdraw
money from the treasury to pay non-existent suppliers of livestock feed. In 2013, he was sentenced to a five-year
prison term in a case relating to the withdrawal of ₹37 crore from the Chaibasa district treasury. He remains
disqualified from electoral contest as a result of that conviction, although he was granted bail by the Supreme
Court in December 2013. His conviction on Saturday by a Central Bureau of Investigation court relates to
withdrawals worth ₹84.50 lakh between 1994 and 1996 from the Deogarh treasury. As it has been established even
in earlier trials that a large-scale scam had taken place in the name of purchasing fodder for cattle, any more
convictions in one or more of the many cases spread across Bihar and Jharkhand will come as no surprise. Mr.
Prasad had failed to convince the Supreme Court earlier this year that repeatedly trying him in respect of the
treasury withdrawals in different districts violated his constitutional protection against double jeopardy. The
court has ruled that different transactions ought to be established independently, even if the acts of
embezzlement arose out of an overarching conspiracy. As Mr. Prasad awaits his sentence, which will be known on
January 3, he is already in jail, along with 15 others. Instead of one, he now has two convictions against his name.
He has to wait until a higher court exonerates him in both before he can regain eligibility to contest elections.
ALSO READ
Mr. Prasad’s political fortunes have been fluctuating. He could take credit for the victory of
the grand alliance of the RJD, the Janata Dal (United) and the Congress in the November
2015 Assembly election in Bihar, but that unity was short-lived. It was an allegation that
went back to Mr. Prasad’s days as Railway Minister that ruptured the ties between his party
The story
behind the and Chief Minister Nitish Kumar of the JD(U). Mr. Prasad and his family members were
Mahagathbandha named in a First Information Report filed by the CBI that claimed that his wife Rabri Devi
break-up
and son Tejaswi Yadav received a prime piece of property in Patna as a quid pro quo for a
contract to develop and run two railway hotels. With Tejaswi Yadav refusing to resign as
Deputy Chief Minister, Mr. Kumar quickly switched over to the BJP-led camp, to govern without the RJD’s
support. This meant that Mr. Prasad’s influence as the leader of an 80-member legislature party was not as game-
changing as it had appeared to be when the Mahagathbandhan was formed as an anti-Bharatiya Janata Party front
in 2014. It may be too early to write off Mr. Prasad, who is perceived by some sections as a bulwark against
communalism, but as the ghosts of the murky past return, his immediate political future looks bleaker. This jolt
may not send him to political oblivion yet, but it may be one from which he will not recover easily.
Bulwark - A defensive wall
Murky - dark and gloomy, especially due to thick mist.
Double Jeopardy - A procedural defence that prevents an accused person from being tried again on the same
(or similar) charges and on the same facts, following a valid acquittal or conviction.
EDITORIAL
Best year ever: on Indian cricket's exceptional 2017

As Indian cricket wraps up a spectacularly successful year, key stress-tests lie ahead
T he Indian men’s cricket team had an exceptional 2017 — statistically, its best year ever. Across
formats, only the all-conquering Australians of 2003, with 38 wins from 47 games, managed more
victories than India’s 37 in 53 matches this year. Virat Kohli’s side didn’t merely consolidate its hold on
the No. 1 spot in Tests; it also routinely bullied the opposition in the shorter forms of the game. The lone
blip came in the Champions Trophy in England, where India unravelled against a feisty Pakistan. But
few will complain when a runner-up finish in a global tournament is the year’s biggest failure. That
match apart, an inevitability seemed to accompany India’s success: whether it was a Test, a One-Day
International or a Twenty20, the team took the field noticeably stronger than its adversary, and calmly,
ruthlessly, set about proving it. It is often said that a side fashions itself in its captain’s image. There were
certainly moments during the year when India played with the glowering intensity Kohli is famous for.
Ajinkya Rahane and Rohit Sharma stepped successfully into the breach when Kohli was absent; and both
brought to the job the subtle impress of their personality. Besides, the side has leaders all around the
pitch. The few times India was threatened in 2017 — and only Australia during the Tests early in the year
did it more than once — it invariably found a hero.
The one discordant note in an otherwise harmonious 12 months was the controversy over Anil Kumble’s
exit as coach. The episode should have been handled better, but it is encouraging that it did not derail the
team. Indeed, the overall system looks robust and fertile — rare plants such as the quick-bowling all-
rounder (Hardik Pandya) and the left-arm wrist-spinner (Kuldeep Yadav) don’t take root and flourish
otherwise. Nor do specialist Test batsmen such as M. Vijay and Cheteshwar Pujara or pure glovemen such
as Wriddhiman Saha. The thrust towards empowering bowlers, vital in a country smitten by batsmen, has
not weakened. Clearly, the selectors and the team management — both in Kumble’s time and now under
Ravi Shastri — are on the same page; so is Rahul Dravid, who has played a significant developmental role
with the junior and ‘A’ sides. If there is a sobering thought in these heady times, it is that the new year will
bring stiffer challenges. A lot of 2017 was at home; but 10 Tests in 2018 will be played in South Africa,
England, and Australia, tours that stress-test every fissure and fault line. India will not be afforded too
many mistakes. Kohli’s men have, however, given the team’s fans reason to dream.
EDITORIAL
On the line: on India-China boundary talks

It is vital that India-China talks on the boundary question pick up speed
T he meeting between the Special Representatives of India and China — National Security Adviser Ajit
Doval and State Councillor Yang Jiechi — on the boundary question on December 22, the 20th so far, was
unique for a number of reasons. The talks came more than 20 months after the last round, reflecting a period
of extreme strain in India-China ties, including the 70-day troop stand-off at Doklam this year. Previous
meetings had followed each other within a year. Also, at the recent Communist Party Congress, Mr. Yang was
elevated to the Political Bureau, and this is the first time the Chinese side has been represented by an SR of
such seniority. As a result, the two sides were best poised to move ahead in the three-step process that was
part of the Agreement on ‘Political Parameters and Guiding Principles for the Settlement of the India-China
Boundary Question’ in 2005 — that is, defining the guidelines for the settlement of border disputes,
formulating a framework agreement on the implementation of the guidelines, and completing border
demarcation. The SRs were given an extended mandate after meetings between Prime Minister Narendra
Modi and President Xi Jinping this year, and thus went well beyond the remit of discussing the resolution of
boundary issues. Above all, they were guided by the Modi-Xi agreements of 2017, including the ‘Astana
consensus’ that “differences must not be allowed to become disputes”, and the understanding at Xiamen that
India-China relations “are a factor of stability” in an increasingly unstable world.
It would be a mistake, however, to infer that with all these engagements the worst in
Remit - an item
referred to someone bilateral ties is now behind the two countries. Since 2013, when the Border Defence
for consideration. Cooperation Agreement was signed, there has been a steady decline in relations in all
spheres. The border has seen more transgressions, people-to-people ties have suffered
amid mutual suspicion, and China’s forays in South Asia as well as India’s forays into
South-East Asian sea lanes have increasingly become areas of contestation. In India, this
is seen as the outcome of China’s ambition of geopolitical domination. In this vitiated
atmosphere India views every move by China as a targeted assault — such as the Belt and
Road Initiative with the economic corridor with Pakistan, the free trade agreement with the Maldives, and
the blocking of India’s membership bid at the Nuclear Suppliers Group. In turn, Beijing sees the U.S.-India
defence agreements, the Quadrilateral engagement with Japan, Australia and the U.S., and Indian opposition
to the BRI quite the same way. The stand-off at Doklam was a hint of what may ensue at greater regularity
unless greater attention is paid to resolving the differences for which the SR meetings process was set up in
the first place.
EDITORIAL
Cash and churn: on the R.K. Nagar bypoll result

The result of the R.K. Nagar by-election spells political instability for Tamil Nadu
S ometimes a war can be won only by withdrawing from a battlefront. The real surprise in the R.K. Nagar
Assembly by-election in Tamil Nadu was not the victory of the rebel AIADMK candidate T.T.V. Dhinakaran,
contesting as an independent, but the third- place finish of the DMK candidate Marudu Ganesh. Instead of
benefiting from the split in the AIADMK support base, the DMK appears to have suffered a huge erosion in its
vote bank. There is no obvious explanation for the poor showing; not even the alleged cash distribution by the
two AIADMK groups can account for the sudden dip in the DMK’s share of the vote resulting in the candidate
forfeiting his deposit. But it may be worth keeping in mind that winning the seat would have meant nothing for
the DMK, whether in the short term or in the long term. What the runaway victory of Mr. Dhinakaran does is
sow the seeds of confusion in the ranks of the AIADMK; it even has the potential to bring down the government
led by Edappadi K. Palaniswami. Many of the MLAs and MPs in the ruling faction of the AIADMK owe their
allegiance to Mr. Dhinakaran and the Sasikala family. But they chose to back Mr. Palaniswami only because they
did not want mid-term Assembly elections, and they were not sure of the voter acceptability of the Sasikala
family. Thus, the R.K. Nagar result could set off another round of churn in the AIADMK; many of the MLAs may
now see the Sasikala family as the only force that could keep the party together and command wider voter
support. The worst-case scenario for the DMK was a victory for the official AIADMK candidate E.
Madhusudhanan. That would have strengthened the hands of Chief Minister Palaniswami, and ensured the
continuance of his government. The Dhinakaran victory may be a loss in the immediate term, but for the DMK
it could be a blessing in the medium term, allowing it a shot at returning to power through a mid-term election.
ALSO READ
As for the ruling AIADMK faction though, it will have to deal with the consequences of this
political setback. Despite having won the battle for the party name and the election
symbol, the fight for political legitimacy is far from over. Once the Dhinakaran faction
attains a critical mass, the ruling camp may see desertions on a large scale. Clearly, fielding
EPS-OPS:
walking a
the elderly and feeble Mr. Madhusudhanan against Mr. Dhinakaran was a bad idea. And
tightrope although the official group tried its best to match Mr. Dhinakaran in electioneering, the
voters opted for the opportunity to set off a political churn. The ruling faction of the
AIADMK spent too much time putting out the internal fires in the party and too little on
governance. The result in R.K. Nagar might not be the final word on the political legitimacy of the Sasikala
family, but the voters have surely set Tamil Nadu on the path of a prolonged period of political instability.
EDITORIAL
Change & continuity: what lies ahead for Rupani, Thakur

Vijay Rupani and Jairam Thakur will be judged by the same criterion: performance
A leader is as good as the party he leads. But in Gujarat and Himachal Pradesh, the Bharatiya Janata Party
found the performance of its chief ministerial candidates at variance with that of the rest of the party. Vijay
Rupani, the incumbent Chief Minister, won his Rajkot West seat comfortably, even as the BJP conceded
ground to the Congress in Gujarat. Prem Kumar Dhumal lost in Sujanpur, but the BJP won big in Himachal
Pradesh to wrest power from the Congress. After the poor showing in Gujarat, the re-nomination of Mr.
Rupani as the legislature party leader was not automatic; there were other contenders, including his deputy,
Nitin Patel. The BJP was under some pressure to send a positive signal to the Patidar community, large
sections of which appeared to have shifted their allegiance to the Congress. But the party settled for another
term for Mr. Rupani, not wanting to pin the blame for the below par performance on him. After all, the
campaign had been led from the front by Prime Minister Narendra Modi and party president Amit Shah.
Ignoring Mr. Rupani’s claim would only have meant laying the groundwork for further disaffection within
the party. In Himachal Pradesh, the situation was, in many ways, very different. Despite losing his seat, Mr.
Dhumal was not out of contention for the post of Chief Minister till the very end, with many newly elected
members of the legislature offering to vacate their seats for him. But while recognising that Mr. Dhumal did
indeed boost its chances in several seats, the BJP opted for five-time MLA Jairam Thakur as the new Chief
Minister. Evidently, the reasoning was that rewarding Mr. Dhumal would be interpreted by detractors as a
show of disrespect to the verdict of the people in his constituency. Also, the BJP’s ideological mentor, the
Rashtriya Swayamsevak Sangh, is known to be opposed to rewarding with ministerial posts those who have
lost an election. That Mr. Thakur is a former pracharak would only have made the RSS bring greater force to
bear upon the BJP in this regard.

ALSO READ
While the choice of Mr. Rupani is a vote for continuity, it is not an endorsement of
The Gujarat
stakes: on everything that he did in the short period he has been in power in Gujarat. To rule in Mr.
Assembly
election 2017
Modi’s name is one thing, but to not be a pro-active agent in governance is quite
another. Mr. Rupani will continue to be on test under the keen eyes of the Modi-Shah
combine. The BJP’s rural backing seems to have shrunk and the party depended heavily
on its core support base of traders and the urban middle class to win the election. In
Himachal, Mr. Thakur will likely have a freer hand, but he too will be under watch.
Unless he can help his party beat the incumbency disadvantage, Mr. Thakur will not be
seen as having done his job. Retaining power is not as easy as re-gaining power.
Imbroglio - an extremely confused, complicated, or embarrassing situation.
EDITORIAL
After the sanctions: on North Korea

Diplomacy remains the best option to bring North Korea to disarmament talks
T he fresh round of economic sanctions imposed unanimously by the UN Security Council on North
Korea is a predictable response to mounting international frustration over the nuclear stand-off. The
measures come days after the U.S., echoing suspicions in other countries, charged the North Korean
government with the world-wide ‘WannaCry’ cyberattacks in May. The sanctions include an 89% curb on
refined petroleum imports into North Korea, stringent inspections of ships transferring fuel to the country,
and the expulsion of thousands of North Koreans in other countries (who send home crucial hard currency)
within two years. Despite the crippling nature of the curbs, there is some good news on this imbroglio. As on
previous occasions, Beijing and Moscow were able to impress upon the Security Council the potentially
destabilising and hence counterproductive impact of extreme measures. This is significant given the
intercontinental ballistic missile that Pyongyang launched in November. It was described by U.S. Defence
Secretary Jim Mattis as technically more sophisticated than anything witnessed previously, and the North
Korean regime’s claim that it could deliver nuclear warheads anywhere in North America has been viewed
with concern. However, even as China and Russia approved the latest measures, they continued to state their
preference for diplomatic engagement. It remains to be seen how much more pressure Beijing can exert upon
Pyongyang.
The stated aim of the sanctions regime has been to force North Korea to halt its nuclear programme and start
disarmament negotiations. In September, North Korea detonated its sixth underground nuclear device,
which it claimed was a hydrogen bomb. That assertion remains unverified, but experts believe the explosion
was many times more powerful than previous detonations. The development has served as a reminder to the
U.S. that the scope for military options may be increasingly narrowing. Against this backdrop, a revival of
stalled peace negotiations between the P-5 nations and North Korea may be the only realistic alternative on
the horizon. The successful conclusion of the 2015 civilian nuclear agreement between the P-5 plus Germany
and Iran affords a constructive template to move ahead with North Korea. Certainly, U.S. President Donald
Trump has delivered a scathing blow to the Iran deal, even as he stopped short of scrapping it. Iran’s
continued compliance with the inspections of the International Atomic Energy Agency may not mean much
to Mr. Trump, given his overall distrust of multilateral institutions. But that is no reason why other big
powers should not pursue the diplomatic effort with redoubled energy. Countries that backed the recently
adopted UN nuclear weapons abolition pact should likewise lobby Pyongyang.
Gaggle - a disorderly group of people. (the gaggle of photographers that dogged his every step)
Egregious - outstandingly bad; shocking
Denominational - relating to or according to the principles of a particular religious denomination
EDITORIAL
Unseemly spat: on the Kulbhushan Jadhav reunion

India and Pakistan must step back from the accusatory exchange over the Jadhav reunion
T he meeting in Islamabad between former naval commander Kulbhushan Jadhav and his family
should have been a sign that India and Pakistan are able to adhere to internationally accepted norms in
dealing with officers accused of espionage. Instead, Mr. Jadhav’s meeting with his mother and his wife
has led quickly to an unseemly spat, with fears that bilateral ties could now deteriorate further. India has
reason to complain on several counts. First, it took months for Pakistan to allow the meeting after
Pakistan conducted a secret military court trial of Mr. Jadhav on terrorism and spying charges, which
seemed a sham. India had to take its case for consular access to the International Court of Justice for
Pakistan to be made to pause the process, and give a commitment that Mr. Jadhav’s execution sentence
would be on hold pending a decision. Second, having accepted the visit, Pakistan’s Foreign Office turned a
personal, humanitarian meeting into a media circus, with photographs of the meeting and a prepared
video statement from Mr. Jadhav thanking the Pakistani government released. A gaggle of hostile
journalists hurled undignified questions at the women. Pakistan would have been expected to use the
visit to showcase its “humanitarian gesture”, but its conduct of the Jadhav reunion was crass.
India’s statement reacting to Pakistan’s actions bears closer scrutiny as well. To have objected to the
frisking, change of attire and removal of the mangalsutra necklace, bindi, and so on obscures other, more
egregious actions that India could rightfully have taken up. Most prison manuals in India mandate the
removal of all metal objects and most accessories, while several prisoner-family meetings around the
world take place across glass screens, especially when they involve terror suspects. References to
Pakistan’s “religious and cultural insensitivity” needlessly give the episode a denominational tinge.
Instead, India should have made its objections on the other procedural blunders from their
understanding known, but by summoning the relevant Pakistani diplomat to South Block. Going
forward, India and Pakistan should ensure that their exchanges on Mr. Jadhav are conducted through
quiet diplomacy. If the object is to save him from an unfair trial and sentencing, where a coerced
confession and dual passports appear to be the only evidence against him, then it is in India’s interests to
convince Pakistan and the world of the benefits of doing so. Backed in a corner on several counts from
other countries on the issue of terrorism, Pakistan may well be persuaded of the inhumanity, injustice,
and imprudence of carrying out Mr. Jadhav’s sentence — but it will need a face-saver which can only be
found through reasoned diplomacy. When a man’s life hangs in the balance, political point-scoring,
especially at this stage, can be counterproductive.
Anthraquinone - Natural aromatic chemicals
Scourge - a person or thing that causes great trouble or suffering.
Emaciated - abnormally thin or weak, especially because of illness or a lack of food.
Epidemiology - study and analysis of the distribution and determinants of health and disease conditions in
defined populations
EDITORIAL
The diagnostic lens: on encephalitis

It’s time doctors updated their understanding of encephalitis
A paper in the Indian journal Current Science suggests an unexpected cause for the inflammatory brain
disease — encephalitis — found in Malkangiri district of Odisha. For many years, this recurring outbreak,
which killed over 100 children last year, was thought to be due to the Japanese encephalitis (JE) virus. Now
researchers say it was likely due to the consumption of a wild bean, called Bada Chakunda, which grows freely
in the region. Like several natural toxins, the anthraquinones in the bean don’t harm healthy people, but
cause fatal dysfunction of the liver, heart and brain in underfed children. This finding draws on the
researchers’ previous work in Uttar Pradesh’s Saharanpur district, where too a recurrent encephalitis
outbreak was traced to this bean. While more data may be needed to confirm this link, it is clear the
Malkangiri scourge wasn’t JE. This is only the latest in a series of such investigations in which suspected
pockets of JE turned out to be something else. An illness around for three decades in U.P.’s Gorakhpur turned
out, primarily, to be scrub typhus last year, while epidemics in Bihar’s Muzaffarpur were linked to lychee
consumption, again among emaciated children. In all these cases, the suspicion of JE, though the
epidemiology and symptoms didn’t match, delayed the discovery of the cause.
ALSO READ
Why does this keep happening? One answer is that JE was indeed the biggest cause of
encephalitis in India for decades, and today the public health diagnostic machinery is
built around this illness. But as JE vaccination rates have grown, incidence has shrunk,
and a host of other causes of encephalitis, like dengue, scrub typhus, herpes simplex and
Ignoring the
science behind
the West Nile virus, have emerged to the forefront. Yet, investigating agencies such as
encephalitis the National Centre for Disease Control and the National Institute of Virology have
deaths
persisted in focussing on JE. Another problem is the archaic format in which
encephalitis is reported to the government. This too is a relic of the pre-JE-vaccination
era. Under this format, if an encephalitis case cannot be confirmed as JE, doctors tag it as Acute Encephalitis
Syndrome (AES), a term that has now crept into medical literature. But AES is no diagnosis, just a temporary
label for different unnamed diseases. Classifying them all under one head gives doctors the false sense of
security of having pinpointed the illness, the researchers behind the Malkangiri finding argue. It is time for
Indian investigators to update their understanding of encephalitis and look at outbreaks through a wider
lens. If JE made 2,043 Indians sick this year, the mysterious AES is reported to have affected six times as many.
A fixation with JE means the numerous patients in the second group may never get a diagnosis.
Biotic -relating to or resulting from living organisms.
Monoculture - the cultivation of a single crop in a given area.
Sequestration - isolate or hide away, a general cut in government spending.
EDITORIAL
Growing forests: on expanding good green cover

A scientific national plan to expand good green cover is absolutely essential
T he disclosure in Parliament that the Centre is not ready with the rules to implement the Compensatory
Afforestation Fund Act, 2016 demonstrates that the government’s resolve to meet a variety of environmental
objectives, including major commitments under the Paris Agreement on climate change and the Sustainable
Development Goals, remains woefully weak. It is, of course, debatable whether the Act, with the disbursal
mechanism through national and State funds that it mandates, is a sound remedy for loss of rich forests that
continues to occur because of developmental and biotic pressures. The evidence on compensatory
afforestation in a big project such as the Sardar Sarovar Dam, for instance, is not encouraging. About 13,000
hectares were compensated there, but only with patchy outcomes: healthy monoculture plantations having
low biodiversity value came up in some places, while others resulted in unhealthy plantations with few trees.
Be that as it may, diversion of forests for non-forest use seems inevitable to some degree, and the
accumulation of about ₹40,000 crore in compensatory funds clearly points to significant annexation of
important habitats. The task is to make an assessment of suitable lands, preferably contiguous with protected
areas that can be turned over for management to a joint apparatus consisting of forest department staff and
scientific experts.
ALSO
READ Putting in place a scientific national plan to expand good green cover is essential, since
Pawns in the
great forest the sequestration of carbon through sustainably managed forests is a key component of
game
the commitment made under the Paris Agreement. There is already a Green India
BHARATH
Mission, which is distinct from the framework envisaged for compensatory
SUNDARAM
afforestation. What the Centre needs to do is to enable independent audit of all
connected programmes, in order to sensibly deploy the financial resources now
available. It must be emphasised, however, that replacing a natural forest with a
plantation does not really serve the cause of nature, wildlife, or the forest-dwelling
communities who depend on it, because of the sheer loss of biodiversity. Yet, there is
immense potential to augment the services of forests through a careful choice of plants and trees under the
afforestation programme. All this can make a beginning only with the actualisation of the law passed in 2016.
It is worth pointing out that the method used to calculate the net present value of forests, taking into account
all ecosystem services they provide, is far from perfect, as many scientists point out. Some of the momentum
for compensatory afforestation has come from judicial directives, but now that there is a new law in place, it
should be given a foundation of rules that rest on scientific credibility.
EDITORIAL
Testing times: on the bad loans menace

Structural reforms alone offer a viable long-term solution to the bad loans mess
T he Central government has been working hard to address India’s twin balance sheet problem, but it
hasn’t had much to show in the form of results. The Financial Stability Report released by the Reserve Bank
of India, for one, suggests that India is still far away from solving the troubles ailing its banks and large
business corporations. According to the report released last week, gross non-performing assets (NPAs) in
the banking system as a whole rose to 10.2% at the end of September, from 9.6% at the end of March. This,
according to a research report released by CARE Ratings, puts India fifth among significant economies with
the most NPAs. The RBI stated further that it expects NPAs to continue to rise to as high as 11.1% of total
outstanding loans by September 2018, so the end to the bad loans mess seems nowhere near. The bad loans
problem has also not spared private sector banks – these lenders have seen their asset quality deteriorate at
a faster pace than public sector banks. Private bank NPAs increased by almost 41%, as compared to 17% in
the case of public sector banks at the end of September. Non-banking financial companies that compete
against banks also saw a jump in NPAs. There are, however, some signs of hope as credit growth has begun to
turn the corner and shown faster growth on a year-on-year basis when compared to March.

ALSO READ
Reforms undertaken until now though may not be good enough to tackle the problem.
The resolution of bankruptcy cases, particularly against large borrowers that
contribute a major share of bank NPAs, under the new Insolvency and Bankruptcy
Code should help bring the NPA situation under some control. In fact, despite its many
Panel exhorts
Centre to
imperfections and the slow pace of resolutions by the National Company Law
staunch bank Tribunal, the Code can be helpful in cleaning up bank books in future credit cycles.
NPAs
The recapitalisation of public sector banks too can help increase the capital cushion of
banks and induce them to lend more and boost economic activity. But bad debt
resolution and recapitalisation are only part of the solution as they, by themselves, can do very little to rein
in reckless lending that has pushed the Indian banking system to its current sorry state. Unless there are
systemic reforms that address the problem of unsustainable lending, future credit cycles will continue to
stress the banking system. In this regard, the government will do well to consider the recent advice of the
International Monetary Fund to reduce its ownership stake in banks and give greater powers to the RBI to
regulate public sector banks efficiently. Structural reforms are the only long-term solution.
Tort - a civil wrong that causes someone else to suffer loss or harm resulting in legal liability for the person
who commits the tortious act. The person who commits the act is called a tortfeasor.
EDITORIAL
Violators must pay: on fire tragedies

Mumbai’s fire tragedies must be thoroughly probed, and fire safety enforced countrywide
T he loss of at least 14 lives in the fire in a Mumbai rooftop restaurant on Thursday night must compel a
relentless campaign for safety in buildings. Earlier this week, in another tragedy in the city, at least 12
migrant labourers were killed in a fire in an industrial area. This is a catastrophe that can befall anyone,
which is why the fires in the upmarket building in the Kamala Mills compound and the snacks shop in Saki
Naka in India’s financial capital need to become examples: of fixing of accountability of owners, managers
and official agencies; punishment for those guilty of breaking rules; exemplary compensation for families of
the dead and for the injured; and zero-tolerance enforcement of safety requirements. It should sting the
conscience of governments that they learnt nothing from the Uphaar cinema hall fire in New Delhi in 1997
that killed 59 people. In that episode, the exits had been blocked by unauthorised seating. An impartial
inquiry is needed to determine what building and other rules were violated in Mumbai, and to identify the
officials who allowed them. It would be wrong to categorise deliberate acts as instances of mere negligence.
Those responsible must be prosecuted without leniency.
ALSO READ
Assessing a fire professionally involves an inquiry that focusses on established
construction codes: whether the possibility of igniting it was actively reduced, whether
provision was made for controlling the spread of fire and smoke, whether the design
enabled occupant escape and firefighter access, and whether the structure was built to
Mumbai pub
fire: It took over
avoid collapse. The inquiry ordered by the Maharashtra government must produce a
6 hours to public report on all these parameters. It must be followed up with meticulous
control the
blaze prosecution. Given how the Uphaar case played out, it is important to see that the guilty
do not use every device available to prolong the judicial process. It would ill-serve the
cause of justice to the victims if the judiciary takes a lenient view of such a crime. The urgent need is to make
examples of violators, invoking the most stringent provisions. Long as it has been, the struggle waged by the
families of Uphaar victims who came together to form an association is in itself a commendable effort that
has exposed the indifference of the executive. The absence of a strong law of torts accompanied by a slow
criminal justice process and rampant bureaucratic and political corruption have contributed to the brazen
violation of building norms and a system of special schemes to regularise such death traps for a fee. It is
wrong for courts to take a benign approach to such blatant, complicit measures. On the other hand, they
should be concerned that their orders issued to ensure public safety — road safety is one example — remain
mostly on paper. It should worry us that the lives of Indians seem to be of little value.
Snap Election - an election called earlier than expected.
EDITORIAL
A complex result: on the Catalan election

The fractured outcome of the Catalan election demands wise next steps from Madrid
L ast week’s snap election in Catalonia in Spain saw pro-independence parties win an absolute majority
in the region’s parliament, but challenges remain for them to form a government given the fractured
mandate. The three main pro-independence parties, Together for Catalonia (JxCat), Republican Left of
Catalonia (ERC), and the left-wing Popular Unity Candidacy (CUP), which secured 70 of 135 seats and 48% of
the popular vote collectively, could form a government if they can band together — an outcome that is not a
given. The Ciudadanos (Citizens) party, which wants Catalonia to be semi-autonomous, emerged as the single
largest party with 37 seats and 25% of the vote, a large jump from its previous vote share of 7.6% two years
ago. The fact that JxCat leader Carles Puigdemont, the former president of the region and the driving force
behind the independence referendum, is in exile, and former vice-president Oriol Junqueras, who leads the
ERC, is in prison makes the formation of a pro-independence coalition tricky. Mr. Puigdemont will have to
return to Barcelona if he wants to lead a government but he faces arrest upon return. Even if he does return, it
remains to be seen if the pro-independence parties can find alignment. Mr. Junqueras has suggested he is
open to reconciliation with Madrid while also pursuing independence, a softer approach than Mr.
Puigdemont’s.
ALSO READ
Meanwhile, Prime Minister Mariano Rajoy has indicated that the winner of the
elections, in his reckoning, is the 36-year-old rising star of the Citizens party, Inés
Arrimadas, who ran a campaign — not unlike others seen recently in Europe — focussing
on the economic consequences of Catalonia leaving Spain. While it is true that Ms.
Spain sacks
Catalonia’s
Arrimadas’s party is the biggest winner, it still does not have a majority of seats; forming
government a coalition of anti-independence parties will be difficult. It is not surprising that Mr.
Rajoy looks favourably on the Citizens party, which supports his centre-right People’s
Party (PP) at the national level, enabling them to form a minority government in
Madrid. This is especially significant in light of the dismal results of the PP in the Catalonian elections. The
party won just three seats, down from 11 in the previous parliament. It behoves Mr. Rajoy, in his capacity as
Prime Minister, to opt for the path of dialogue and understanding. This will likely involve, as a first step,
facilitating the return of Mr. Puigdemont and the release of Mr. Junqueras and those who were jailed with
him, potentially facing 30 years in prison for non-violent political acts. While giving in to expediency may be
tempting, it will be costly for Catalonia and Spain in the longer term. Dialogue is crucial, given the complex
and divisive issue of independence.

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EDITORIAL

Irish recovery: when Leo Varadkar’s government almost collapsed

Dealing with data

Pump priming - the stimulation of economic activity by investment.

Fragile momentum: India's economic growth

Accident-prone: the apathy over enforcing road safety rules

The apathy over enforcing road safety rules must stop

Bit of a bubble? — on bitcoins and cryptocurrencies

It is difﬁcult to account for the dizzying increase in the value of cryptocurrencies

Capturing crime — on the NCRB data for 2016

Dutch Tulip Bulb Market Bubble

BREAKING DOWN 'Dutch Tulip Bulb Market Bubble'

BREAKING DOWN 'Bubble'

BREAKING DOWN 'Tulipmania'

A similar cycle was witnessed during the dotcom bubble.

BREAKING DOWN 'Bubble Company'

BREAKING DOWN 'Housing Bubble'

May also be referred to as a "price bubble" or "market bubble".

BREAKING DOWN 'Speculative Bubble'

BREAKING DOWN 'Mississippi Company'

Other famous speculative bubbles include:

BREAKING DOWN 'Echo Bubble'

BREAKING DOWN 'Dotcom Bubble'

How the Dotcom Bubble Burst

Bail-in doubts — on financial resolution legislation

The government needs to re-examine the proposed ﬁnancial resolution legislation

Forgotten war — on Saudi-Yemen crisis

With that smile — on Shashi Kapoor

Shashi Kapoor, from big-budget romance to indie innovation to theatre revival

New India formula? — on the 15th Finance Commission

Island hopping — on Maldives-China FTA

The Maldives’ FTA with China signals a drift in Delhi-Male ties

Unwavering caution — on RBI holding repo rate

Inflation Target: Four per cent.

(a) The Governor of the Bank—Chairperson, ex officio;

Capital crisis — on U.S. recognising Jerusalem as Israel’s capital

Defection, disaffection — on disqualification of JD(U) leaders from

Countering hate — on murder of migrant worker in

Rights & wrongs — on Transgender Persons Bill

The Centre should reconsider its draft Bill on transgender rights

Crunch time at WTO: On farm subsidies

A s leaders at the World Trade Organisation’s 11th biennial Ministerial Conference in

Turn the page: On ANC’s future

A massive victory: On Left Alliance landslide in Nepal

Nepal’s Left Alliance has the strength to deliver on governance

Chaperon - accompany and look after or supervise.

In an elite club: On India’s Wassenaar entry

Wassenaar Arrangement strengthens India’s credentials as a responsible nuclear power.

Starting over: On Rahul’s elevation

Unedifying campaign: On Gujarat polls

The outsider: On adultery law

IS was?: On Islamic State’s defeat

Revival risks: On economy woes

House rules: On May’s Brexit defeat

Stalemate at WTO: On U.S. obstructionism

U.S. obstructionism has worsened the developed-developing countries divide

Feed the cure: On paying TB patients

Divorce as crime: on instant triple talaq

Making triple talaq a criminal offence is unnecessary and possibly counter-productive

A measured leap: on planetary system

The amazing story of the discovery of a planetary system

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Win without the shine: on BJP's win in Gujarat and Himachal