News Wrap
AGD

Afrenzied mob of right wing Hindu activists, destroyed the triple domes of the Babri Masjid on 6 December 1992. Now twenty years later, Ayodhaya Town (Uttar Pradesh) by the Saraju River, stands dilapidated and disabled. Increasing prosperity in India, has not achieved a decline in communal violence. Since the Ahmedabad riots of 1969, every major riot has taken place where muslim artisans had become newly prosperous, and where the aspirations of muslim entrepreneurs are in conflicting economic competition, with those of traditional Hindu intermediaries. Muslims continue to be the most urbanized community. But in the post-Babri period, their pace of urbanization has slowed considerably. A new insecurity is reflected in the fact that in the decade of the 1990s, the proportion of muslims living in cities remained stagnant, while it increased for other communities. The Lok Sabha is 5.5% muslim, much lower than three decades earlier. Muslim economic exclusion has resulted in comparatively low income development indicators for the community.
Walmart Lobbying

Walmart has spent about $25 million (about Rs 125 crore) since 2008 on lobbying, including on issues related to ‘‘enhanced market access’’ for investment in India. This is as per a disclosure filed by Walmart with the US Senate. While lobbying is not illegal in USA, in India it is corruption and bribery. Bharati Walmart, the multi-national super store maintains that the amount mentioned is a ‘‘compilation of expenses associated with staff, association dues, consultants and contributions spent in USA’’. But apparently money has been spent in entering the lucrative Indian market, even though the names of Indian ‘‘beneficiaries’’ are yet to be made public. Serious hurdles in the way of approving 51% FDI in retail did not emerge from media campaigns nor from bureaucratic opposition. Obstructions were created by political parties, who voted in Parliament. The lobbying for Walmart was undertaken by Patton-Boggs firm, which was the same firm that had negotiated for the Indian government in the USA, for the bribe-tainted nuclear deal. Frank Wisner, former US Ambassador to India is presently working for Patton-Boggs.

Tatas in Rupnarayanpur
At Rupnarayanpur in West Bengal, barely 130 odd km from Singur, the scene of Tatas’ dismantled car manufacturing factory, the Tatas have set up a factory, for the manufacture of excavators, mining trucks and earth moving equipment. It is a joint venture with the Japanese firm Hitachi. Production commenced in 2009, and the company has a turnover of Rs 3000 crore. The Japanese firm has 60% of shares in the Tata-Hitachi Construction Machinery Company. Rs 450 crore has already been invested, out of a total planned investment of Rs 575 crore. Demands from India’s neighbouring countries is expected to be fulfilled for the next twenty five years. The plant would be the world’s biggest construction equipment manufacturing unit. The company expects to reach $1 billion (Rs 5,500 crore) turnover in the next five years.

A little away from Kolkata, the Rupnarayanpur factory was never part of any political turmoil. 250 acres of land was obtained from farmers, at prices prevailing then. Of the 600 employees, 80% are those who gave land to the government, for the factory. On an average, the farmers sold about two bighas of land per family, at prices prevailing then. The farmers are earning at least 50% more than what the former agricultural land was generating. The proposed township at Rupnarayanpur, to be built by the company, will have schools, hospital, shopping centres, and clubs.

China Evolving
The new 205-member Central Committee of China’s ruling Communist Party voted for new members of the Politburo Standing Committee, the innermost circle of power in China’s authoritarian government, in mid-November 2012. Fifty-nine-year-old Xi Jinping is the new head of the ruling Communist Party of China (CPC) and the powerful military, in a smooth transition. Ending the ten year old reign of president Hu Jintao, the new president will steer the world’s second largest economy over the next decade, amid concerns over rampant corruption and widening rich-poor divide. Mr Li Kequiang, aged fifty-seven years, is the new prime minister, succeeding Wen Jiabao. Socialism with Chinese characteristics will be established. The Chinese model attempts to make the markets, economy and production serve the people. The Chinese development model could establish harmony between nature and the people. The CPC General Secretary Hu Jintao stressed the party’s desire to reserve the trend of ecological deterioration and build a beautiful China. Hundreds of millions of people in China have been lifted out of poverty, and provided with better education and longer life expectancy. The CPC is treating Scientific Outlook on Development, on par with Marxism–Leninism, Mao Zedong thought, and Deng Xiaoping Theory. China is expected to increase people’s income to boost domestic demand. China modernization is aimed to build a ‘Xiaokang’, or moderately well off society, by 100th anniversary of the founding of the CPC.

For years Chinese officials have been talking of reforms. Labour costs would rise in the coming years. China would have to rely on a ‘‘Reform Dividend’’ to boost development, instead of a ‘‘Demographic Dividend’’ of an abundance of cheap labour. ‘‘Entrenched Interests’’ include state owned monopolies. The new leaders speak of the need for reform of China’s household registration system, which denies rural migrants the same welfare rights as their city born counterparts. Mention of reform of ‘‘land management’’ is an apparent reference to farmers’ land rights, which are often violated by local officials.

Frontier
Vol. 45, No. 26, Jan 6-12, 2013

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