Restorative Justice

Author(s): B. Rajeshwari
Source: Economic and Political Weekly , Apr. 1-7, 2006, Vol. 41, No. 13 (Apr. 1-7, 2006),
pp. 1222+1292
Published by: Economic and Political Weekly

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 Letters Subscription
Inland
(Rs)
Six One Two Three

A Dangerous Measure months year years years

Institutions - 1250 2300 3300

inflows have no stimulating effect onIndividuals

e, the undersigned members 500 935 1750 2500

of the economics profession, productive capital formation. On the Concessional Rates

are shocked by the
government's eagerness to introduce
full capital account convertibility.
move would imply that the inflow
Teachers/Researchers - 685 - 1800
contrary, they lead either to undesirable
Students - 450 - -
appreciation of the exchange rate
(leading to recession and
This Concessional rates are availa
unemployment)
and or to a mere pile-up ofof concessional rates, certific

outflow of capital by residents foreign

and exchange reserves which is essential. Remittance by
non-residents would no longeractually be involves the economy as a preferred. Please add Rs
towards bank collection ch
subject to any regulation. whole borrowing dear and lending cheap.
This would expose the Indian According to the government's ownNepal and Bhutan
economy to extreme volatility, since in
pronouncements, the economy is Institutions - 1500 - 4150
the event of a capital outflow,currently it would doing very well. In such a Individuals - 1250 - 3500
no longer be only non-resident context, exposing the country to
investors who would be able to unpredictable movements in capital Foreign
repatriate their funds, but also Indian flows creates a potential for fragility (US $)
residents who would be free to take and crisis that is completely avoidable. Air Mail Surface Mail
out any amount of domestic wealth. This is of particular concern because Institutions

Such outflows by local residents arethe stock market is already lyr 2yrs 3yrs lyr 2yrs 3yrs
precisely what had contributed to the experiencing a speculative boom. Sri Lanka, Pakistan

massive build-up of Latin American We urge the UPA government to and Bangladesh 80 150 200 65 120 175
debt in the 1970s and 1980s. In Brazil, Other countries 150 275 375 90 170 240
desist from such an unnecessary and
for example, the total amount of the dangerous measure. Individuals

outstanding external debt in the K S KRISHNASWAMY, Bangalore; Sri Lanka, Pakistan

beginning of the 1980s was almost
equal to the estimated capital flight by
the resident rich. The costs of servicing
this debt and pursuing the
conditionalities required to renegotiate
the debt were borne by the working
poor. Similar outcomes of capital account
liberalisation have been observed in a
host of other developing countries,
such as Turkey, Indonesia and Mexico.
It should be noted that the Indian
economy could insulate itself from the
contagion of the south-east Asian
financial crisis in the late 1990s only
because the capital controls in place at
the time prevented destabilising K NARAYANANNAIR, Thiruvananthapuram;
movements of capital.
We do not want the re-enactment in
our country of a scenario in which the SUDIPTA BHATTACHARYA, Shantiniketan;
poor, who are among the poorest in theKANNAN SRINIVASAN, Clayton, Australia;
world, have to pay the price for the
unrestricted freedom of the rich to shift
their wealth out of the country
whenever it suits them.
The gains to the economy from this
move are nil. The argument that this is
necessary for attracting direct foreign
ASHOK MITRA, Kolkata;and Bangladesh 50 90 125 30 50 75
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investment does not stand scrutiny. The EPW Research Foundation

biggest developing country recipients The judgment in the Best Bakery C 212, Akurli Industrial Estate, Kandivali (East)
of foreign capital (such as China today case raises a number of issues as
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capital flows. We know from our own
Director: S L Shetty
experience that portfolio investment (Continued on p 1292)

1222 Economic and Political Weekly April 1, 2006

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 Letters

(Continued from p 1222) obligation to set things right. Also it communally sensitive areas of Gujarat,
involves the active participation of this approach to justice, where both
In instances of communal riots, mostvictims, offenders and communities in victims and perpetrators are brought
governments. not only in India but the all search for solutions which promote together, could provide an opportunity
over the world, have viewed justicereconciliation and reassurance. for reconciliation.
only as a compensation for damages The Best Bakery case perhaps forms In India, the community-centred
incurred by the victim. This does not the best example for seeking to rectify approach to local issues adopted by
address restorative issues of justice lacunae in the criminal justice system. gram panchayats, through informal
nor does it attempt to initiate any At a procedural level, the state has mechanisms, promotes reconciliation
reconciliation for both perpetrators andconstituted judicial inquiry commissions, and relationship building. The
the victims. It is in this context that provided compensation to victims andAlternative Dispute Resolution Centre
the Best Bakery case and other in rare cases punished the perpetrators; in Chennai has been involved in
previous attempts by the state to but it has become important to envision enhancing similar goals of justice
provide justice to victims of communal justice beyond purely state-centric outside the criminal justice system.
riots need to be analysed. legalistic interpretations. It is, thus, Initiatives to restore justice could
In situations of communal riots, essential to address the trauma that draw from such indigenous approaches
attempts have been made only to victims and their families encounter at to ensure an accountable and efficient
address retributive aspects of justice. the time of riots and even after the actual functioning of the state-centric
Restorative justice, on the other hand, act of violence, through reconciliation judicial system.
asserts that since crime is a violation tools like healing and sustained B RAJESHWARI
of people and relationships, there is andialogue at a community level. In New Delhi

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1292 Economic and Political Weekly April 1, 2006

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