The New Nation - Internet Edition

Budget for the next fiscal

BUDGET formulation in the present volatile national and international economic climate involves tightrope walking. The budget framers are limited in their actions by inadequacy of funds. There are too many sectors competing for scarce funds. In this situation, hardly the sectoral requirements can be fully met. The proposed budget for 2008-9, thus, could not be devoid of these aspects. However, the budget has broadly met the expectation of important stakeholders, specially the business groups. They have praised the budgetary proposals for reducing direct taxes such as corporate tax and for fiscal measures like reducing duties on imported raw materials and capital machinery while raising tariffs on imported finished products.

Thus, the businesses have generally called the budget business-friendly likely to encourage investment and greater production activities while also giving better protection to local industries. Businesses generate a lion's share of the revenue for the government and their being happy can be a major factor in reaching revenue collection targets. Expansion of social safety nets, creation of guaranteed employment for the poor, retention of high level of subsidies on food and fuel that impact on the costs of living of the poor have been commended.

This is for the reason that government's borrowing from the banking system will be higher in the next fiscal to maintain these spending on largely charitable and consumptive activities and for subsidy. Thus, the biggest challenge is to ensure that the government's borrowing does not lead to reduction of credit to the private sector. Furthermore, completion of the Annual Development Programme (ADP) must be aimed at. As it is, the huge size of the budget, the provision for ample spending on it because of the election, will mean further rise in inflation. Monetary policies will have to be expertly applied to keep this inflation as low as possible.

Jute demands greater attention

THE Adviser for Jute and Textiles has disclosed that five jute mills which were closed down during the present government, would be re-started gradually. People's Jute Mills of Khulna shall go into production in July next and four others in due course. The jute mills will be leased out to individuals or groups initially for five years and the process is in progress.. Permanent labourers of the mills shall get back their jobs and against vacancies labourers will be employed on a daily basis. The general policy of the government is to privatise all state-owned industrial units of all sectors. But over the last one decade progress made in this area is limited. In the given circumstances, it is wise to keep the unsold units operative until they are sold out.

Only two decades back jute and jute goods were our number one foreign exchange earners. But as a consequence of nationalisation and the government's indifference, production of raw jute by the farmers and manufacturing of jute goods in mills fell drastically. This adversely affected both jute farming and jute goods manufacturing. The trend must now be stopped and jute production and jute goods manufacturing restored to their lost glory.

The adviser has disclosed that the government has taken up a programme to offer micro-credit to jute growers of 100 upazilas in 40 districts. Micro-credit should be given to all jute farmers and not only those in 100 upazilas. Along with this, as the Adviser has said, diversified uses of jute should be evolved to enhance its demand in the international market. Market should be searched and the effort may be tuned with RMG marketing activities for better results.

Reinvent employment guarantee

Dr. Sudhirendar Sharma

Suspecting me to be a government official, the tribal in village Gunnar in Koraput district of Orissa rushed forward with their job cards. Not having seen a magic job card that ensures 100 days of guaranteed employment under the National Rural Employment Guarantee Act (NREGA), I was curious to have a careful look at it. To my surprise, all the 42 cards in a 45-household village were blank. Not a single day worth of job was ushered to any of the poor tribals during the past two years. Second year of the UPA government's flagship scheme had come to a close, signalling that almost a million from the country's taxpayers money have been siphoned off from just one village.

With the scheme been extended to the entire country, previously restricted to 330 districts, securing employment rights of such hapless villagers has only become more compelling.

While there have been success stories in NREGA files, exceptions fail to correct the abysmal failure of the scheme that could generate only 18 days of average employment across the country during the first two years. In the process, Rs 12,000 crore of taxpayers' money was devoured last year. Incompetent state machinery, riddled with corruption, will only better its previous year's achievement!

All said, the proponents of the scheme argue that there is nothing wrong per se in the idea of assured employment to the rural poor. That all governmental schemes of this magnitude invariably fall short of its targets must therefore be accepted as given.

That a large fraction of the money ending up in the pockets of various intermediaries at the cost of the poor must not be frowned upon. An editorial in one of the business magazines has estimated that, in 596 districts where the scheme is being implemented, some 4,000 new millionaries will be created if the money siphoning process is not reversed.

Can the NREGA be made to deliver any better? Spending huge amount of manpower to create non-tangible assets such as kuccha roads, which will be washed away during the rains, could ensure employment but cannot create durable assets. Cleaning of village ponds and creation of water bodies may seem tangible but there is a limit to which these could be done, year after year.

No wonder, some economists have even suggested enacting a law to help the government make a minimum monetary transfer to poor households every year. It is argued that if digging the earth is an excuse to distribute money, direct disbursements are sure to work better!

As the employment guarantee scheme transits into new areas, more questions related to defining `wage work' have started to surface. Farmers in drought-ravaged Bundelkhand region of Uttar Pradesh wonder if tilling one's own land could be considered worthy of wage compensation.

Why dig a pit in no-man's land when similar effort can help prepare a piece of farm for cultivation instead? Villagers in Sangrur district of Punjab desire that the workforce they hire from other states should be covered under the employment guarantee scheme, even if it amounts to direct subsidy.

The crucial question, however, is whether the state finds comfort in converting its massive rural communities into minion labour. Further, creating dependent millions may become a huge financial liability too. Can the poor farmers not barter their knowledge instead? Should the tribal not be compensated for preserving country's natural assets?

There are several ways in which the productive potential of the economically poor could be assessed, measured and compensated. The poor harbour in them the living culture of survival techniques, of livelihoods ecology, of exquisite handmade objects, and of passionate folk songs.

The tribal households in Gunnar could do without wage labour provided the state can compensate them for their low-carbon lifestyle, evolved after centuries of living in harmony with nature.

Converting such vibrant cultures to menial labour is also a crime, when the opportunity cost of such transformation is considered. There has been talk of initiatives to make communities stakeholders in conservation. These financial incentives should not be seen as subsidies, but necessary policy interventions to protect the environment and create wealth via the carbon trade route.

The employment guarantee scheme offers an opportunity for its innovative application across diverse situations, provided flexibility in its implementation is permitted. Since such populist measures find political support of all hues, the challenge will be to convert a resource-guzzling scheme into one that generates wealth and self-respect for the economically weaker sections of the society. A bad script that the NREGA is at present can indeed to turned into a good story!

Prosperity will prevail

Feng Jianhua

Tranquility was smashed in Lhasa, capital city of Tibet Autonomous Region on March 14. Armed with stones, bricks and sticks, the rioters left a trail of crimes, including beatings, smashings, lootings and arson, victimizing ordinary residents in the city. How did the violence happen? And what was the impact? On March 24, Beijing Review Feng Jianghua interviewed Tanzen Lhundup, Research Fellow and Vice Director at the Social and Economics Institute, China Tibetology Research Center.

Beijing Review: How has the riot affected the lives of local residents?: Tanzen Lhundup: The riot has seriously disrupted the social order and daily life of local residents. About a dozen innocent residents were killed; adults could not go to work as usual and were afraid to walk on the streets; kids did not dare to leave schools without the company of their parents; shop owners had to close their businesses. The good part is that the local government contained the unrest within two or three days, and restored social order. The government has remained confident and resolute, demonstrating strong governing ability and improved crisis management skills.

How do the local residents see the riot?: The greatest wish for local residents in Tibet is to live a peaceful, happy and prosperous life. Right now, Tibetan residents are on their way to prosperity and are generally happy with their lives. The recent violent crimes were plotted by a small bunch of people. The criminals did not only break the law, but also went against the will of local residents and hurt their interests.

What are the expectations of Tibetan residents for the social and economic development in Tibet?: The Chinese Government has a consistent policy and mission-that is to improve the living standard of the people and let Tibetan people fully enjoy the fruits of reform and opening up. To lift the Tibetan people out of poverty, the Central Government has supplied the Tibet with a large amount of personnel, materials and funding. The Central Government has paid for most of the fiscal expenditures of the local government and infrastructure construction in Tibet. In fact, for every 10 yuan ($1.40) that the government of the Tibet Autonomous Region spent, 9 yuan ($1.26) is from the Central Government spends.

With an average altitude of more than 4,000 meters above sea level, Tibet is known as the roof of the world. Underdeveloped transportation has retarded social and economic development in the region. Now with policy support from the Central Government, infrastructure development in Tibet has leaped forward. In the old days there were no modern roads in Tibet. Now a complex network of highways, airlines and railways covers Tibet. The first railway in Tibet, the Qinghai-Tibet Railway, was opened on July 1, 2006, turning a new chapter in Tibet's history. Improvement in transportation has boosted industrial development in Tibet. A diversified modern industry system with Tibetan characteristics has been established.

With social and economic development, the living standard of the Tibetan people has been significantly improved. One of the most obvious changes is that improvements in transportation have brought more tourists to Tibet, invigorating the local catering and hotel industries, enlarging the demand for the production of Tibetan-style artifacts such as Thangka and wood sculptures, and boosting employment and the revenues of local farmers and herdsmen.

On the other hand, to protect the economic interests of local residents, the regional government stipulates that non-local enterprises investing in Tibet must hire local residents and meet a minimum wage requirement. In addition, infrastructure projects funded by the Central Government are primarily contracted out to enterprises in Tibet, so as to promote local employment and benefit the local residents.

Tibet residents have long enjoyed free healthcare services. Medical care is provided by a medical network covering both the urban and rural areas, and by medical teams consisting primarily of members from the Tibetan ethnic group. The region's improved healthcare system and living standards have brought about a population boom. Now the population in Tibet has increased to 2.7 million from 1 million before 1959. The infant mortality rate has dropped to 3.1 per thousand from 43 per thousand in 1959, and average life expectancy has increased to 67 from 35.5 in 1959. Today, the lifestyle of Lhasa residents, especially that of the younger generation, is very close to that of Beijing residents. People are clad in fashionable clothes and dine out for tasty meals. Booklovers can read a host of publications, including 14 magazines and 10 newspapers in the Tibetan language. Netizens can surf cyberspace in Internet bars.

Recently, Premier Wen Jiabao expressed that the government's preferential policy toward Tibet will not change under the new leadership born at the 11th National People's Congress. In the next five years, the government will invest more in Tibet and promote fast and steady economic and social growth in the region. Under the preferential policy, more and more Tibetan residents are living a moderately prosperous life, and are looking forward to a promising future. Social stability is the precondition for prosperity.

Who wants to trade a peaceful and prosperous life for turmoil? The recent violent crimes have obvious political intentions. Most of the Tibetan residents strongly resent the riot. Many Tibetans risked their lives to rescue and protect the Han Chinese. This indicates harmony between different ethnic groups in Tibet, which is a key reason that the riot can be controlled so soon.

Will the riots hurt social and economic development in Tibet?: The incident will affect social and economic growth in Tibet in the short run. The government will keep close watch on the impact. In the long run, no one can block social and economic development in Tibet. The historical trend is irreversible.

Admittedly, while overall social and economic development in Tibet is satisfactory, there are still some challenges. In the three decades since the launch of the reform and opening up policy, the southeast coastal regions of China have been growing rapidly, eclipsing the economic growth in Tibet. To maintain lasting stability in Tibet, it is necessary to expedite the growth speed in Tibet, so as to shrink the gap between Tibet and the developed regions of China.

In my opinion, the recent riots will remind the Tibetan people to better cherish the peaceful and stable lives they enjoy now. In the meantime, the riot also helped the government realize that to maintain lasting harmony and stability in Tibet, it is important to improve the living standards of local residents and empower them to enjoy the fruits of modernization.

-Beijing Review

Tibet in the year 2007

Total retail sales figures for consumer goods reached 11.2 billion yuan ($1.59 billion) in 2007, up 24.9 percent year-on-year over the previous year. The output growth of Tibet's industry sector hit 2.6 billion yuan ($368.8 million), increasing by 17.7 percent from the previous year.

Urban per capita disposable income reached 10,720 yuan ($1,521). The average net income of farmers and herdsmen stood at 2,788 yuan ($395), up 14.5 percent year-on-year.

A total of 697 million yuan ($99 million) went toward social causes in the Tibet Autonomous Region, of which 472 million yuan ($67 million) was invested in education to build 39 standard primary schools in rural areas and 13 junior middle schools. The enrollment rates of Tibet's primary school, junior middle school, senior middle school and college education were, respectively, 98.2 percent, 90.7 percent, 42.96 percent and 17.4 percent last year. The illiteracy rate among youths and adults dropped to 4.76 percent.

The medical system in the farm and pasture areas in Tibet benefits all farmers and herdsmen, with the per capita medical subsidy increased to 100 yuan ($14).

Science and technology development played a more important role in promoting economic growth in Tibet as the autonomous regional government devoted 56 million yuan ($7.9 million) and the Central Government allocated 111 million yuan ($15.7 million) of the state science fund to fund science and technology upgrades there.

The radio and TV coverage reached 87.8 percent and 88.9 percent, respectively.

The autonomous regional government invested 758 million yuan ($107.5 million) in housing projects for low-income residents and subsided a total of 56,000 families, or 294,000 farmers.

The construction of roads as long as 9,616 km was completed in rural areas to connect 94 townships and 848 villages. By the end of last year, a population of 180,000 in 348 villages in 96 townships enjoyed access to electricity and 332,800 local residents had access to clean and safe drinking water.

Postal services were available in 61 major townships, and villagers in 700 villages were connected to the outside world through their phones.

Thanks to the local government's reemployment-aid efforts, Lhasa became the country's first capital city without a jobless family. About 95.41 percent of more than 8,000 college graduates in the autonomous region found jobs last year. The minimum standard of living for city residents in Tibet was 230 yuan ($32.60).

Open sky media distorting our social fabrics

M.T. Hussain

Openness to foreign TV media in Bangladesh is a recent development. It came quite logically along with openness in our society for pluralism and multi-party democratic order. There is now a sort of opinion here that the presence of huge foreign TV media has been creating impediments for development of our own culture. Is that so?

Wide access to reliable media for information and facts is a must for building informed and knowledge based society. Unfortunately, like many developing countries, Bangladesh's media, to my knowledge, do not have enough capital investment that it requires for wide coverage, authentic collection and sifting of reliable facts, prompt presentation of facts, figures and documents through electronic media, satisfactorily competing efficiency, and possibly above all not enough revenue generation for sustenance through posterity. On the other hand, TV like BBC, Aljazeera etc are known to have all time financial support for efficient sustenance. Thus interested persons depend on such TV media for efficiency, reliability and authenticity of facts, figures and documents that in Bangladesh are hard to come by for various weaknesses and control on the media.

However, no media can be absolutely value-free of the organization or country that provides funding for the particular media. Even so, media of rather open societies are quantitatively and qualitatively better than those of the other or of the more centrally controlled ones. But the crucial issue lies elsewhere.

The West is an open and free society. Politics, economics, culture are open providing wide range of freedom. The truth is that open market economy is, in fact, a lassie fare one or go as you like system subjected to supply and demand just as open multi-party politics in culture of openness. Lately following the industrial revolution and women's 'liberation', freedom of sexuality has added a dimension to the freedom of culture of the West that could have easily intruded in for secularization of politics and society. This is the particular area where we have issues to take care for cognizance.

Though sexuality is a natural matter between two opposite sexes and willing partners of mature age as the Muslims are bound by marriage tie having spiritual sanction of religion, the West lately has gone beyond the sacred religious bond thus making it irrelevant with religion, even if one would vaguely believe in religion. In other words, the separation of church and state relegating private religious sexual morality to naught has gone on similarly to the domain of free market having no concern for ethics and morality in business transactions except considering profit and loss in material terms. Whether the father of the Modern Economics Adam Smith who taught Ethics and Morality in a British university over two centuries ago making later on his great work, Wealth of the Nation, has been having any peace of his soul in his grave for the erosion of moral values in free market economy dominating the human world! The making of sexuality of men and women free and isolated from religious morality that has followed the free market mechanism along with secular politics, apart from creating chaos in family life and society, has, in fact, increased internal exploitative mechanism that has been perpetuating in the West. The PUB culture for the working class means not only drinking wine to get drunk to gain, as they maintain, 'fresh energy' to get to work again with renewed vigor but also along with it has viciously come sexual anarchy not only in and around the PUB culture but also elsewhere in public places in the open and in the bigger society. The social elite though do not share company in the working class PUB (Public Bar) but have their elite BAR in clubs and hotels and not in community public places or small street corner centers, for drinking wine in the company of young woman, not necessarily wife, in somewhat secluded or secret manner.

The Western TV channels maintain 'late night' movie programs somewhat away from children and adolescents' view, as they are required normally to go to bed early. Nude magazines have huge market for mainly men of perverted sexual attitudes and tastes. That sexual perversion in the West has, as well, in culture of homosexuality, same sex marriage, promiscuity etc. that caused wide spread of killer diseases like AIDS/ HIV positive etc. that infested those societies in a sort of anarchy for secularism following isolation of social attitude to sex and sexual morality from religious ethics and morality. The wide culture of nudism, strip tease etc. are all now integral part of Western culture and so they are all the most likely to figure in their programs of visual media screen. These vices and evils what the Muslims must shun in the sky culture, and not their propagation of authentic facts and figure, intellectual discourse etc that developing countries lack very much in media, both print and electronics. However, scrutiny of desirables from avoidable evils needs to be done intelligently and dispassionately for sifting grain from chaff, and not in throwing the baby away with the bath water. Neither that would be consistent with the spirit of pluralism of the Constitution of Bangladesh nor with our effort to build a well informed and knowledge based society.

The conspicuous evils of Western sky culture, apart from the rapid spread of killer diseases, like broken homes and family chaos may well be taught in planned way to the Bangladeshi children and adolescents, in particular, through both informal and formal learning materials in school textbooks. That is how if internal resistance could be built up in the psyche of the new generation the evil effects for lull of sexual permissiveness of the Western sky culture would certainly be contained.