Politics and not Good Economics Prevail

If over 300 million Indians who are grouped under the category BPL(Below The Poverty Line - an euphemism for the starving not in a position to get two square meals a day) continue to live in their misery despite two eminent economists being at the helm of economic power of the nation, and if the disparity between the rich and the poor has widened alarmingly despite their noble economic policies for the 'aam admi'(the common man), there must be something amiss. The Prime Minister and the Finance Minister are acclaimed all over the world as eminent economists and they are architects of India's incredible growth story destined to emerge as the world's second largest economic power by the year 2050. However, going by the spate of recent policy announcements, one wonders whether they have turned seasoned politicians abandoning their garbs of economists as the general election draws near. First came the mega loan waiver for the farmers costing the exchequer over Rs 60,000 crores.The Finance minister has so far been able to reallocate Rs 10,000 crores only for the loan waiver. Is he leaving the Herculean unfinished job of providing over Rs50,000 crores for his successor being sure that he would not have to burn the mid-night oil over the problem? Then the largesse for the middle class following the announcement of tax sops would cost the nation dearly. The 'aam admi' are already reeling under as inflation shows no sign of being reined in. On the other hand, with more disposable income in the hands of a small percentage of population the raging inflation is most likely to become worse engulfing more people. As if not satisfied with its own profligacy, the government appears to be patting its back for having got the recommendation of the Sixth Pay Commission just at the opportune moment. About forty-five lakh government employees will get 40-60% salary hike putting an additional burden of Rs20,000 crores. What would happen to the pernicious inflation and also the growing disparity between the rich and the poor? There is no time for the policy framers to ponder over these mundane matters now as vote-bank politics is ruling supreme. For those hapless millions who are not part of any pressure groups, such bonanza makes little difference to their lives and on the contrary, they are viewed as ominous signs of darker days ahead. History says when Rome was burning, Nero was fiddling! Is history going to repeat?

POSCO PROJECT IN JEOPARDY

The 12-million tonne steel project in Orissa to be set up by POSCO was acclaimed as the biggest FDI over two and half years back but it seems to be jinxed. From the beginning, it has been facing roadblocks one after another. There was a furore over the company's reported plan to export high grade iron ores and it died down only after the officials refuted such reports.
The site and infrastructure demanded for setting up of a dedicated port at Paradip also ran into rough weather. But the biggest shock the company got when the landowners of the proposed site refused to part with their land. There was considerable media hype that the project would be a boon for the people of Orissa which is one of the most underdeveloped states in India.It was expected by inveswtors as well as the government that people would just lap it up. Instead, organised resistance groups sprang up to protest against setting up of the project for fear of thousands being displaced from their homes and farmers loosing their farmlands.The resistance soon found sympathisers not only among political parties of all hues but also social activists and environmentalists. If one has been following the news reports on agitation that is going on for months, he or she would conclude that the proposed site has turned into a veritable war-zone. Besides regular violence and injuries to protesters as well as lawkeepers, the situation is getting out of hand as people are arming and training themselves to continue their fight against any forcible acquisition of land. Perhaps, the wind of Nandigram has blown to the neighbouring state.
The last straw on the camel's back came by way of the recommendation given by the Supreme-Court appointed centrally empowered committee saying that POSCO should not be given piecemeal forest clearances. It has urged that only after 'considering the ecologicalimportance of the area, number of trees to be felled, adequacy and effectiveness of the rehabilitation and resettlement plan for the project affected persons and benefits accuing to the states', the clearance should be given.
From the hurdles faced by POSCO, it is quite clear that there there has been too many slips 'twixst the cup and the lip. In their anxiety to win some brownie points, both the state and central government have been going gaga over such projects without first tying up the loose ends. The Chief Minister of Orissa has made a bold statement that work at the project site would commence on 1st April, 2008 coinciding with the state's birth anniversary despite such poor progress made by the project in the last two and half years. The first day of April is also used by pranksters all over the world every year to fool people. Let not POSCO steel project provide fodder for April Fool's Day of the year 2008.

Water: Waste Not, Want Not !

Location of steel plants is generally decided upon the proximity to two most important resources – iron ore and coking coal. Surprisingly, the third one – water which is emerging as critical resource is not always given proper consideration. Water scarcity is flaring up often as a serious crisis in several parts of India despite floods ravaging the country for decades. Industrialization has worsened the situation as power and steel plants spring up which are water guzzlers.
Now that India is poised to emerge as the second largest steel producer in the world attaining 180 million tones of annual production by 2016, the crisis of water is going to aggravate with 3-4 mega projects of 6-12 million tones capacities along with dozen of smaller capacities being put on the anvil.
The states rich in iron ore deposits having wooed investors for new steel projects are in an unenviable position. The case of the state of Jharkhand serves best to exemplify. It was reported that 11 companies including Tata Steel and Jindal Power and Steel Ltd have applied to draw water from Subernarekha which has the flow of 1520 million cubic meter (MCM) water against the demand of 1667 MCM. Officials said that nearly 329 MCM is being drawn from the river for irrigation, 220 MCM for potable water and 150 MCM for industrial use.
Indian steel industry’s water usage is abysmally poor. For producing one tonne of steel, according to CSE, steel companies in India use 10-80 cubic meter water where as US plants use only 5-10 cubic meter water. Moreover, approximately 80-85 per cent fresh water used in steel making in India is discharged as effluent although over 90-95 per cent water used for steel making in USA is recycled.
Steel is necessary for development but water is essential for life. For sustainable development, the steel industry in India would have to learn to conserve water and use new technology to minimize its use just as it struggles to reduce greenhouse gas emissions to fight global warming and protect the environment. India’s quantum jump in steel production from 51 million tones to 180 million tones will call for celebration only when the scarce water resources are judiciously used without triggering social conflicts and causing miseries to millions of common man.
It may be recalled that someone had perhaps rightly warned “The Third World War would most probably be fought over water”. Let not steel industry be the villain of piece!

Glossing Over Climate Change

An opinion poll conducted by a leading newspaper asked the poser - 'Neither our policy makers understand nor care about climate change'. Pat came the response from the readers; 93% agreed whereas only 5% disagreed with it. Interestingly, the newspaper carried the same day a photograph of a group of school children staging a street play on global warming. The message from the events is clear. The politicians do not put their hearts into such mundane issues as they are obsessed with much more serious matters like how to expand their respective vote banks. Climate change can take care of itself whereas they have very limited time to feather their own nests before the edifice built by severely compromising social and national interests crumble because of their own infightings. There was one more shocking news relating to increasing pollution in cities. Despite directions from the Supreme Court to take measures to curb pollution, the city of Kolkata is chocking due to a lax administration and the city has a maverick Transport Minister who fires salvos unfailingly whenever courts deliver any judgement putting restrictions on the irresponsible and undisciplined public transport operators. It is reported that the mandatory emission tests of vehicles averages a mere 14% for 1.3 million vehicles belching their polluting fumes at will throughout the city. No wonder, Kolkata city has the highest incidence of lung cancer in the country. If only our policymakers understood that they are as much susceptible to health hazards caused by high pollution, they would perhaps divert their attention from power games to climate changes and fighting pollution which will benefit common man.

Politics Invade Steel Projects

There is all round euphoria and optimism pervading the steel ministry. The national steel policy had envisaged a total production of 110 million tonnes by 2020. The ministry had originally envisaged steel production of 65 million tonnes by 2012, which had been revised to 80 million tonnes. Having revised production figures for crude steel production in the financial year 2006-07 and pegging at 50.71 million tonnes and that of finished steel at 51.90 million tonnes thus becoming the 5th largest steel manufacturer in the world, the optimism of Steel ministry understandably continues to soar high. The steel secretary said recently “Based on the current expansion program, that the companies have presented, it is estimated that the capacity of all the companies put together to touch close to 120 million tonnes. Even if they operate at 90% of the installed capacity, the production level will be at 110 million tonnes.”
In industry circles, such projections of capacity expansion are termed differently namely Pessimistic, Optimistic and Realistic. While the Optimistic projection has been given above, the pessimistic projection would be quite uninspiring based on growth attained in the past decades. The growth of steel industry during 2006-07 though very outstanding cannot be taken for granted as normal for the next five years, some cynics may argue.
It is understandable that such optimism is based on what was discussed by the ministry officials with the steel industry captains recently. It is reported that they pledged to create an additional capacity of 70 million tonnes within next five years and "they have gone full throttle to fructify their expansion plans".
Unfortunately, things are not moving always exactly as per the plans drawn up by industry captains and bureaucrats. There is too much politics in the air polluting the industrialisation tempo. The violent resistance in several states to SEZs serves to tell the people who are actually calling the shots. Even the POSCO steel project in Orissa which was showcased as the largest foreign investment in the steel sector has been languishing for nearly two years due to local agitation over land acquisition problems. The inter-ministerial group (IMG), set up by the government to expedite investments in the sector, cannot provide relief to investors whenever politics get precedence over economics.
So whether projections will ultimately turn out to be optimistic, pessimistic or realistic will depend upon politics and going by the present uncertainties and the low level to which it has already plummeted, such optimism may turn out to be misplaced.

Look Out! Your 'Carbon Footprint' Is Showing

The catastrophic effects of global warming have started sinking gradually among people all over the world as more and more irrefutable scientific evidences pour in. Greenhouse gas emissions mostly consist of carbon dioxide have been identified to be responsible for playing havoc with the global climatic change. Hard facts are pointing fingers at developed nations to be worst offenders for contributing recklessly to global warming due to their extremely high level of carbon dioxide emissions compared to the developing nations.
Data pertaining to the year 2004 published in newspapers are found to be fully in line with the above inference. The carbon dioxide emissions in million tonnes for the year country-wise are: USA - 5912, UK - 580, Japan - 1,262, Russia - 1,685, China - 4,707 and India - 1,112.
If the total emissions data are unsavoury for the developed nations, the picture is even more revealing about individuals of different countries. Those who live in large houses, occupy big office spaces, travel by cars and planes frequently and use more electric power for air-conditioning and heating are the ones contributing more dangerously to the cause of global warming as in such cases more fossil-fuel burning is warranted giving rise to higher carbon dioxide emissions. A person using bicycle or public transport and living in small house, lighting his house by CFLs and travelling by trains instead of planes would be a 'green' hero whether he or she adopts such a lifestyle by choice or compulsion.
So, even in the developing countries, there are offenders albeit those belonging to the richer classes whereas the poorer masses have to bear the brunt of global warming despite their 'green' lifestyles. Such awareness among the 'haves' and 'have-nots' is bound to ignite social dissention just as striving to usher in change in carbon footprints of the rich is going to be a Herculean task. Global warming , however, cannot discriminate based on the economic or social status while punishing the inhabitants for ravaging the environment.
After all, Death is the greatest leveller, is it not?

Global Warming: Dubious Ways For A Noble Cause

It has finally dawned upon people all over the world that the apocalyptic disaster due to global warming can no longer be wished away and it is waiting as sure as death to strike the Planet Earth. With resigned acceptance by people and media coverage, the awareness about the lurking danger is fast spreading. The initiatives of Al Gore's Life Earth have already resulted in big musical shows in Tokyo, Sydney, Shanghai, London and Hamburg drawing huge crowds. More are being planned all for the noble cause of fighting global warming. Tens of thousands of music lovers thronged the venues in their cars with the aim of fighting the menace and added more greenhouse gas emissions instead. It turned out to be a case where the remedy is worse than the disease. Moreover, with celebrities like Madonna championing the cause, the effect could just be the opposite. Her 'carbon footprint' (with limousines, private aircrafts and luxurious lifestyles in tow) is not going to inspire the common man even as fans in these concerts have been reportedly urged to sign a seven-point pledge designed to change behaviour and put pressure on political leaders in every country.
But fans love to imitate the lifestyles of their favourite celebrities. So, those, like me, who want the whole business of fighting global warming to be serious one, would raise eyebrows at yet another well-publicised campaign titled 'Global Cool' which is being kick started by Hollywood star Sienna Miller with Bollywood superstar Amitava Bachan. The ostentatious wedding ceremony the superstar Amitava recently arranged for his son-actor Abhishek must have caused equivalent to a few thousand times 'per capita' greenhouse gas emissions. Unless the idea is merely to create media hype for the campaign, it is doubtful if any actual benefit would be bestowed to the cause by choosing such dubious ways.
Yet another striking example of celebrities being drawn to the bandwagon is that of Salman Khan. The actor was arrested for killing rare birds while on a film shooting spree in Rajasthan and the case is still under trial. How can such a person inspire the general public to protect the environment? Let us neither pay lip-services to fighting global warming nor make it a farcical musical soiree.