Sunday, March 25, 2018

New Delhi and Islamabad must address the tit-for-tat harassment of each other’s envoys

Regardless of the provocation or the sequence of events, there is an urgent need for India and Pakistan to address allegations of harassment of each other’s diplomats and interference in High Commission work. While surveillance of diplomats by intelligence agencies in New Delhi and Islamabad is not new, matters have escalated in the past month, and the treatment of diplomatic officials by both sides has dropped to new lows. The spark for this round of ‘tit-for-tat’ actions appears to be an incident in February, when alleged ISI agents roughed up Pakistani construction workers headed for the Indian mission’s new building site in Islamabad. While Pakistan’s foreign office claimed they did not have security clearance to enter the diplomatic zone, India saw it as an attempt to stop the work, adding that power and water connections were tampered with. Then, the Pakistan High Commission in Delhi claimed that Indian security personnel warned repairmen and electricians against entering its premises. Both missions said personnel were being targeted on the road, with cars stopped and drivers intimidated. Other instances on both sides include obscene phone calls, stoppage of milk and newspaper delivery to diplomats, and even 3 a.m. doorbell rings.
The timing is clearly more than just coincidence, and the incidents mark a deliberate policy by India and Pakistan to give their intelligence agencies a carte blanche to target the other side. It is unfortunate that things have come to such a pass, weeks after the two countries agreed to humanitarian measures for prisoners, with Pakistan Foreign Minister Khawaja Asif accepting External Affairs Minister Sushma Swaraj’s proposals on the issue. The allegations of harassment are more serious than just shadow-boxing, and must be checked in order to avoid a further slippage in ties. They constitute technical violations of the Vienna Convention on Diplomatic Relations (1961) and the subsequent Vienna Convention on Consular Relations (1963), which clearly state that a diplomatic agent’s person, premises and property are inviolable and must be respected and protected by the “receiving state”. The fear is that as a next step in this spiral, India and Pakistan may even take stronger measures, including sending back diplomats or scaling down their missions. India had declared Islamabad a non-family post in the wake of the terror attack on an army school in Peshawar; Pakistan may now follow suit by withdrawing its families from Delhi. At a time when bilateral dialogue has been stalled for years, and ceasefire violations are becoming the norm on the Line of Control, any escalation will impact the few lines of communication that remain. Cooler counsel must prevail.

The Chinese President further consolidates his power through an administrative rejig

Its no stranger to reform. Over the past three decades the structure of the government has changed at least half a dozen times. But the scale of reform pushed through this month is comparable to that of 1998 when Zhu Rongji as Premier shut or merged 15 ministries as part of a major liberalisation drive. This time, Prime Minister Li Keqiang has closed six ministries, two ministry-level agencies and seven vice ministry-level departments. Beijing has also created a powerful anti-corruption agency, while the Vice President, till now holding a ceremonial post, is expected to play an active role in policymaking. The stamp of Xi Jinping, re-elected President for five more years with no term limit, is visible in these reforms. A big decision is the empowerment of the Environment Ministry, which will fight air, water and soil pollution, a top priority for Mr. Xi. Two of his close aides have been appointed to key posts — Wang Qishan, an anti-corruption crusader, is now the Vice President, and Liu He, the President’s top fiscal adviser, is a Vice Premier. Mr. Wang is expected to play a leading role in China’s engagement with the U.S. at a time when fears of a trade war loom. Mr. Liu is to head the recently created Financial Stability and Development Commission, which will coordinate between the banking and securities regulators and work towards trimming China’s debt burden. This takes away some of the powers of the Prime Minister, who has traditionally been China’s top economic official. The National Supervision Commission, which is ranked above the judiciary, will have sweeping powers to fight corruption, including the power to detain suspects for up to six months without access to lawyers.
The common thread in these changes is the strengthening of Mr. Xi’s full-blown control over party and government. Earlier this month, by amending the Constitution to remove the two-term limit on the Presidency that was introduced during Deng Xiaoping’s time, the Chinese Communist Party signalled that it was moving away from the “collective leadership” motto to a new era under Mr. Xi. With the latest measures, he is consolidating his hold. The political stability that China has enjoyed over the last two and a half decades was a result of high and sustained economic growth coupled with reform. By concentrating so much power in his hands, Mr. Xi has risked reversing the changes that have become institutionalised over the last three decades. He may enjoy a measure of popularity and have the support of the party for now, but such concentration of power is bound to engender opposition and criticism. His decision to lift presidential term limits has already triggered an uproar on China’s social media networks, prompting the authorities to censor a host of words and phrases, including Animal Farm, the title of George Orwell’s dystopian novel. Mr. Xi will ignore these intimations of discontent only at his own risk.

The controversy is a wake-up call to press ahead with a robust data protection law

The world has just learned how a data analytics firm, Cambridge Analytica, harvested the data of 50 million Facebook users and used that information to feed strategies such as ‘behavioural microtargeting’ and ‘psychographic messaging’ for Donald Trump’s presidential campaign in the U.S. Chris Wylie, a former CA employee-turned-whistle-blower, set off a storm with revelations of how the company had deployed a ‘psychological warfare’ tool for alt-right media guru Steve Bannon to try to sway the election in Mr. Trump’s favour. CA chief executive Alexander Nix, who was suspended a few days ago following an undercover report by a British TV broadcaster, said the company has used other dubious methods in projects worldwide — including honeytraps to discredit clients’ opponents. The combination of using personal data without consent and tailoring slander campaigns, fake news and propaganda to discovered preferences of voters is a potent and corrosive cocktail. Facebook has said its policies in 2014, when a personality profiling app was run on its platform, permitted the developer to scrape data not only from those who downloaded the app but also from the profiles of their Facebook ‘friends’. Yet it did not make sure the data were destroyed by the app’s developer Aleksandr Kogan, a Cambridge University academic, nor by CA itself when it came to light that Mr. Kogan had sold the data to CA, a third party. Facebook founder and CEO Mark Zuckerberg has offered an apology and expressed willingness to cooperate with inquiries and potentially open up Facebook to regulation.
This episode has brought to light several issues that need to be addressed. First, companies have been collecting data and tailoring marketing campaigns accordingly. The issue here is particularly prickly because politics and elections are involved. Second, regardless of whether what Facebook and CA did was legal or not, something is broken in a policy environment in which the data of millions are taken and used when only 270,000 people knowingly or unknowingly gave consent. Third, technology is evolving at a rapid pace, raising the question whether laws need to be reframed mandating an opt-out approach universally rather than an opt-in approach. Individuals often share their data without being aware of it or understanding the implications of privacy terms and conditions. Fourth, there must be clear laws on the ownership of data and what data need to be protected. Personal data cannot be the new oil. Individuals must own it, have a right to know what companies and governments know about them and, in most cases, that is, when there are no legitimate security or public interest reasons, have the right to have their data destroyed. The CA issue is a wake-up call for India; the government is still dragging its feet on framing a comprehensive and robust data protection law.

As the U.S. continues to raise benchmark rates, India should take precautionary steps

The U.S. Federal Reserve continues to slowly pull away the punch bowl as the party gets going. This week the Fed raised its benchmark short-term interest rate by 25 basis points to 1.50-1.75%, the highest in a decade. While this is only the sixth rate increase since the financial crisis of 2008 — which pushed central banks to cut interest rates to historic lows — it portends further increases in global interest rates. Higher borrowing costs could squeeze both markets and the wider economy. If its dot-plot projections are considered, the Fed under its new Chairman Jerome Powell — who chaired the Federal Open Market Committee meeting for the first time on Wednesday — is expected to raise rates two more times in 2018. And with the American economy projected to grow at a fairly healthy clip amid quickening inflation, the increases in the Fed’s discount rate are expected to gather pace over the next two years. Now, as the Fed and other global central banks move towards normalising monetary policy, the impact on the wider credit markets is slowly beginning to show. This is particularly so in the case of the interbank lending market, which is directly influenced by central banks to affect interest rates across the board. The London Interbank Offered Rate, which is the rate at which international banks lend to each other and serves as a benchmark for lending rates, has risen for more than 30 consecutive sessions and is at its highest since the financial crisis. Its effect has spilled over into other markets, including the corporate debt market.
Rising rates amid improving global economic growth could adversely affect the capacity of private firms to service their debt. This risk of default by private borrowers has been flagged by various organisations, including the International Monetary Fund last month. It is, after all, no secret that private corporations attracted by ultra-low interest rates had heavily loaded up on debt over the last decade. Some companies borrowed heavily from across the borders, thus making them prone to exchange rate risks as well. Any widespread default on debt today would be reminiscent of the 2004-2006 period when the Fed’s raising of rates to tackle inflation led to a mass default on U.S. mortgage debt. Global markets on Friday witnessed a steep sell-off that was immediately linked to President Donald Trump’s recent decision to impose new tariffs on China. Trade wars clearly have a negative impact on global growth and corporate earnings. But the wider sell-off, under way since February, can also be linked to rising interest rates which adversely affect asset prices. India, which could be hit by fund outflows as overseas investors look homeward to benefit from the rising rates, would do well to take precautionary steps.

The National Health Protection Mission requires a bold, holistic approach

The NDA government’s scheme to provide health cover of ₹5 lakh per year to 10 crore poor and vulnerable families through the Ayushman Bharat-National Health Protection Mission has taken a step forward with the Union Cabinet approving the modalities of its implementation. Considering the small window, just over a year, available before the term of the present government ends, urgent action is needed to roll out such an ambitious scheme. For a start, the apex council that will steer the programme and the governing board to operationalise it in partnership with the States need to be set up. The States, which have a statutory responsibility for provision of health care, have to act quickly and form dedicated agencies to run the scheme. Since the NHPM represents the foundation for a universal health coverage system that should eventually cover all Indians, it needs to be given a sound legal basis, ideally through a separate law. This could be on the lines of legislation governing the rights to food and information. Such legislation would strengthen entitlement to care, which is vital to the scheme’s success. It will also enable much-needed regulatory control over pricing of hospital-based treatments. The initial norms set for availing benefits under the NHPM, which subsumes earlier health assurance schemes, appear to make the inclusion of vulnerable groups such as senior citizens, women and children contingent on families meeting other criteria, except in the case of Scheduled Caste and Scheduled Tribe households. The government should take the bold step of including these groups universally; the financial risk can be borne by the taxpayer.
Universal health coverage is defined by the WHO as a state when “all people obtain the health services they need without suffering financial hardship when paying for them”. With its endorsement of the Sustainable Development Goals for 2030, India will have to constantly raise its ambition during the dozen years to the deadline. This underscores the importance of raising not just core budgetary spending every year, but paying attention to social determinants of health. Affordable housing, planned urban development, pollution control and road safety are some aspects vital for reducing the public health burden. Unfortunately, governments are paying little attention to these issues, as the quality of life erodes even with steady economic growth. In some of its early assessments on the road to universal health coverage, NITI Aayog advocated a State-specific approach rather than a grand national health system to expand access. But the NHPM has a national character, with States playing a crucial role in its implementation, and beneficiaries being able to port the service anywhere. It is a challenging task to make all this a reality, and the government will have to work hard to put it in place.

Saturday, March 24, 2018

In a plastics world — on safe bottled water

Plastics are now widely present in the environment, as visible waste along coastlines, in lakes and rivers, and even in the soil. The recent finding that microplastic particles are found even in ‘safe’ bottled water indicates the magnitude of the crisis. There is little doubt that the global production of plastics, at over 300 million tonnes a year according to the UN Environment Programme, has overwhelmed the capacity of governments to handle what is thrown away as waste. Microplastics are particles of less than 5 mm that enter the environment either as primary industrial products, such as those used in scrubbers and cosmetics, or via urban waste water and broken-down elements of articles discarded by consumers. Washing of clothes releases synthetic microfibres into water bodies and the sea. The health impact of the presence of polypropylene, polyethylene terephthalate and other chemicals in drinking water, food and even inhaled air may not yet be clear, but indisputably these are contaminants. Research evidence from complementary fields indicates that accumulation of these chemicals can induce or aggravate immune responses in the body. More studies, as a globally coordinated effort, are necessary to assess the impact on health. It is heartening that the WHO has come forward to commission a review of the health impact of plastics in water.
Last December in Nairobi, UN member-countries resolved to produce a binding agreement in 18 months to deal with the release of plastics into the marine environment. The problem is staggering: eight million tonnes of waste, including bottles and packaging, make their way into the sea each year. There is now even the Great Pacific Garbage Patch of plastic debris. India has a major problem dealing with plastics, particularly single-use shopping bags that reach dumping sites, rivers and wetlands along with other waste. The most efficient way to deal with the pollution is to control the production and distribution of plastics. Banning single-use bags and making consumers pay a significant amount for the more durable ones is a feasible solution. Enforcing the Solid Waste Management Rules, 2016, which require segregation of waste from April 8 this year, will retrieve materials and greatly reduce the burden on the environment. Waste separation can be achieved in partnership with the community, and presents a major employment opportunity. The goal, however, has to be long term. As the European Union’s vision 2030 document on creating a circular plastic economy explains, the answer lies in changing the very nature of plastics, from cheap and disposable to durable, reusable and fully recyclable. There is consensus that this is the way forward. Now that the presence of plastics in drinking water, including the bottled variety, has been documented, governments should realise it cannot be business as usual.

Curbing misuse: on SC ruling on the anti-atrocities law



Protecting innocent persons is fine, as long as the SC/ST Act is not de-fanged

Will laying down procedural safeguards to curb false accusations work against the interest of protecting the oppressed from discrimination and caste-based atrocities? This is the salient question that arises from the Supreme Court verdict that has taken note of the perception that the Scheduled Castes and the Scheduled Tribes (Prevention of Atrocities) Act, 1989, is being rampantly misused to settle personal scores and harass adversaries. On the face of it, it is difficult to fault the court’s approach. It is settled law that the mere scope for misuse of an Act is not a ground to invalidate it. Constitution courts seek to preserve the spirit of such legislation on the one hand and to evolve guidelines to prevent its misuse on the other. This is precisely what the two-judge bench has aimed to do. It has ruled that Section 18, which bars grant of anticipatory bail to anyone accused of violating its provisions, is not an absolute bar on giving advance bail to those against whom, prima facie, there is no case. In addition, the Bench has prohibited the arrest of anyone merely because of a complaint that they had committed an atrocity against a Dalit or a tribal person. In respect of public servants, no arrest should be made without the written permission of the official’s appointing authority; and for private citizens, the Senior Superintendent of Police in the district should approve the arrest.
In doing this, the Supreme Court has sought to strike a balance between protecting individual liberty and preserving the spirit of a law in favour of oppressed sections. Without any doubt, atrocities against Dalits are a grim social reality, necessitating a stringent law to combat it. The Act was amended in 2015 to cover newer forms of discrimination and crimes against Dalits and tribals to add teeth to it. It is true that conviction rates under the Act remain low. The lackadaisical approach of investigators and prosecutors to bring home charges against perpetrators of such crimes among the dominant castes is reflected in statistics. Even if courts are right in taking note of the tendency to misuse this law, society and lawmakers must be justifiably worried about the sort of messaging contained in their rulings and observations. In an ideal system, as long as every charge is judicially scrutinised and every investigation or prosecution is fair and honest, one need not worry about misuse and its adverse effects. However, social realities are far from being ideal. It ought to concern us all, including the courts, that some laws designed to protect the weakest and most disempowered people do not lose their teeth. Words of caution and rules against misuse may be needed to grant relief to the innocent. But nothing should be done to de-fang the law itself.

Finding funds: On COP28 and the ‘loss and damage’ fund....

A healthy loss and damage (L&D) fund, a three-decade-old demand, is a fundamental expression of climate justice. The L&D fund is a c...