Regions – WISER WORLD http://www.wiserworld.in Connecting the world with knowledge! Sat, 15 May 2021 13:43:48 +0000 en-US hourly 1 https://wordpress.org/?v=5.8.2 http://www.wiserworld.in/wp-content/uploads/2020/09/Asset-1-10011-150x150.png Regions – WISER WORLD http://www.wiserworld.in 32 32 GENDER-SPECIFIC POPULATION CONTROL POLICIES IN INDIA http://www.wiserworld.in/gender-specific-population-control-policies-in-india/?utm_source=rss&utm_medium=rss&utm_campaign=gender-specific-population-control-policies-in-india http://www.wiserworld.in/gender-specific-population-control-policies-in-india/#respond Sat, 15 May 2021 10:53:00 +0000 http://www.wiserworld.in/?p=4443 The Post-Independence Period (till 1975) and Population Control—India was among the first nations of the world to adopt policies to control the growth of its enormous population in the post-independence period. India saw the rapid population growth as an obstacle to its economic growth hence chose to adopt a population

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The Post-Independence Period (till 1975) and Population Control—India was among the first nations of the world to adopt policies to control the growth of its enormous population in the post-independence period. India saw the rapid population growth as an obstacle to its economic growth hence chose to adopt a population policy as a part of its first five-year plan of 1951 which emphasised the family as a whole and stressed the use of natural devices for family planning. In the following five-year plans, population control policies common to both men and women were adopted which included working in the direction of education, adoption of a clinical approach, sterilization technique for both men and women, and encouraging all kinds of birth control measures (both conventional and modern).

Target-Oriented Population Control during the Emergency Period (1975-1977)

A major breakthrough in the population control process took place when then Prime Minister Indira Gandhi announced a nationwide emergency in 1975 and rigorously enforced mass sterilization programmes to bring down the population growth rate. About 6.2 million Indian men were sterilised in just a year which, according to a 2014 BBC news report, was 15 times the number of people sterilized by the Nazis. Vasectomy was a safer procedure than tubectomy, especially at that time, as it required less recovery time and follow-up hence poor men became the main targets of this gruesome campaign. The campaign to sterilise men involved many levels of harassment. There were even reports of police dragging the men to mass vasectomy camps. Men were considered easier targets for threats like job loss or fines, since they were more likely to be employed outside the home, to take public transportation and to go out or pick up government food rations.

Incentives and disincentives were given on a large scale for acts such as getting oneself sterilized or convincing other citizens to get sterilized. From offering plots of land in return for sterilization to threatening the loss of a government job for those who refused the procedure. While both men and women could be sterilized, the medical system was equipped to do many more vasectomies than tubectomies. Records have shown that the sterilization process mostly targeted the poor citizens and that wealthier Indians were able to buy their way out of the system. The coercive measures and the sterilizations caused a great deal of anger among the people. This unrest caused in the country is also considered as one of the reasons why Indira Gandhi’s government was voted out in the 1977 elections.

Voluntary Period since 1997

The next major breakthrough happened after the emergency period where the Indian government took a 180° turn and began to turn its family planning policy towards women. Female sterilizations became by far the most popular method of contraception. Family planning programmes further extended to rural areas through the network of primary health centres. The most fundamental change of the Indian population policy since 1977 was that family planning became mostly voluntary. The Indian government now put more emphasis on incentives to attract people to accept family planning voluntarily instead of forceful measures. During the Seventh Five Year Plan period between 1986 and 1991, the Indian government’s population control policy extended to including both long term and short term as well as specific goals. The long-term goal was to fix the net reproduction rate to be achieved by 2001 and the short-term goal focused on the female minimum age of marriage and the practice of contraception. The specific goal was to promote a two-child norm by increasing awareness among the people about family planning and responsible parenthood. The government efforts in population control now also extended to increase the literacy rate of the population and especially women.

Formation of the ICPD (1994)

The year 1994 is considered to be a noteworthy one in the history of family planning programmes in the world since the International Conference on Population and Development (ICPD) convened under the United Nations at Cairo in 1994 made some recommendations that were accepted by many developing countries including India that changed the direction of family planning programmes. The conference recommended that family planning programmes should not be driven by demographic goals but instead, they should be based on women’s reproductive rights and reproductive health, keeping in mind the well-being of everyone (International Institute for Population Sciences, 2016).

Adoption of NPP in the year 2000

India adopted the National Population Policy (NPP) in the year 2000 which decentralized the decision making to local government and improved the coordination between the government and the local and non-government organizations. Stress was given to improve the status of mothers and children. The programme focuses on the improvement of health care infrastructure and services and the empowerment of women. It also gives more emphasis to use of contraceptive methods like IUCDs, promotes delayed marriage for girls, provides a policy framework for imparting free and compulsory education up to 14 years of age, seeks to achieve universal immunization of children against all vaccine preventable diseases and to reduce infant mortality rate to below 30 per 1000 live births. Insurance is provided for the deaths, complications and failures caused by sterilization; compensating those who accept sterilizations and increasing male participation in family planning. Family welfare is now promoted as a people-centered program.

Endnote

Overpopulation is the root cause of numerous problems like low per capita income, unemployment and overburdened natural resources among many others. Therefore, the need of the hour today is a more effective measure to reduce the population growth in Indian society. Importance has to be given to population education, achievement of equal status for women and lower caste people, development of economy, urbanization, and modernization of the whole society. When socioeconomic conditions improve, the birth rate will be lower and the overpopulation problem will be reduced (Population Control Policies and Implementations in India, 2019).

References

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JAMAL KHASHOGGI MURDER: SAUDI-US RELATION RECALIBRATION http://www.wiserworld.in/jamal-khashoggi-murder-saudi-us-relation-recalibration/?utm_source=rss&utm_medium=rss&utm_campaign=jamal-khashoggi-murder-saudi-us-relation-recalibration http://www.wiserworld.in/jamal-khashoggi-murder-saudi-us-relation-recalibration/#respond Sat, 20 Mar 2021 08:39:44 +0000 http://www.wiserworld.in/?p=4426 Barely over a month in office and we have seen a radical shift in US policies both domestic and international under Joe Biden. One particular policy decision that has starkly stood out, has been an explicitly repetitive call to support democracy and uphold the high ideal of human rights in

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Barely over a month in office and we have seen a radical shift in US policies both domestic and international under Joe Biden. One particular policy decision that has starkly stood out, has been an explicitly repetitive call to support democracy and uphold the high ideal of human rights in all corners of the world. While a proclamation of such order seems like the preamble to America’s textbook of pre-emptive actions, this policy intention has been under the spotlight, owing to its ability to shape the US foreign policy in the Middle East.

Democrat President Joe Biden’s decision to end support of the six-year-long Yemen war, and reassess American arms sales that began under his tenure as Vice President is surprisingly not what is making the headlines around the world this week. Jamal Khashoggi is a name that is familiar not just in journalistic circles but elsewhere too. Khashoggi was a Washington Post Saudi journalist who was killed in 2018 in Turkey. Following Khashoggi’s gruesome murder at the Saudi Embassy, fingers were instantly pointed at Saudi Arabia, and rather spectacularly on Mohammed Bin Salman, a.k.a, MBS. The Trump administration refused to publish a report linking MBS to the murder, despite the American legislature passing an act calling on intelligence services to provide evidence tying MBS to Khashoggi’s killing. However, matters are a bit different under the Democrat White House. Biden, who made it abundantly clear that his administration is not going to base their Middle East Policy on Saudi Arabia, unlike his predecessors, has finally called for the publication of the long blocked report in the public domain. What remains to be seen is how this is going to alter the relationship between the Americans and their strategically important partner in the Middle East.

Jamal Khashoggi had enjoyed a long and distinguished career in the Saudi Kingdom. He was known to have enjoyed close relations with the Royal family and often acted as an official spokesperson for them. . Khashoggi’s relationship with the ruling family and Saudi Arabia was redefined when King Salman’s son Mohammad Bin Salman started accumulating power and was soon made the Crown-Prince, set to inherit his father’s position. It is during this time Khashoggi distanced himself from the helm of power and became a critic of MBS and his policies often calling out the government and central political figures for imposing severe and autocratic policies. Despite his staunch stance, which fell well within the journalistic standards, no one foresaw what would befall Jamal Khashoggi. Khashoggi, having had come to terms with the threat looming over him, had relocated to the United States, in the form of a self-exile and had been a regular contributor to the Washington Post. Khashoggi in the summer of 2018 had travelled to Turkey in search of marital bliss. Tragically, before he could tie the knot, Jamal Khashoggi was reported missing from the Saudi embassy in Turkey and later pronounced dead.

Relations between the United States and Saudi Arabia were extremely warm under the Trump administration. However, the defining feature in this relationship wasn’t the two heads of state, rather the shots were called by Mohammad Bin Salman, and Trump’s son-in-law, Jared Kushner. The two young and like-minded individuals forged a close relationship in the second part of the decade, mainly due to their shared business mindset. In fact, Trump on Kushner’s urgings decided to make his first official overseas visit to Saudi Arabia. From the very onset of his Presidency, Trump cultivated a very close relationship with the Saudi Kingdom making it the fulcrum of his Middle-East policy, and viewing the country as an important ally against America’s long Middle East rival, the Islamic Republic of Iran. The relationship was further strengthened through the Trump Administration’s decision to increase arms sales to Saudi Arabia, whilst backing its campaign in the Yemen war.

Despite Trump and Kushner obviously viewing their Saudi counterparts as their bosom companions, it was still an utter shock to see Trump adopt an ambiguous stance towards the killing of Washington Post Journalist Jamal Khashoggi. Trumps’ decision to blatantly believe what the Crown-Prince had to say, shook the Congress and American Intelligence Services, as the CIA itself concluded with medium-high certainty that Mohammad Bin Salman was aware of and directly involved in the killing of Jamal Khashoggi.

In 2018, the United States Senate, unanimously passed Resolution 69, which recognised that the Government of the Kingdom of Saudi Arabia has, in recent years engaged in concerning behaviour, which includes its conduct in the civil war in Yemen, the apparent detention of the Prime Minister of Lebanon, suppression of dissent in the Kingdom and of course the killing of Jamal Khashoggi. The resolution explicitly recognises the misleading statements issued by the Saudi government, and that the fact the recent actions have undermined trust and confidence in the long-standing friendship between the United States and the Kingdom of Saudi Arabia. The following resolution having been passed unanimously proved that the United States Senate was ready to take up its role in shaping foreign policy which it had long abdicated in favour of the executive. Despite the directness and consensual adoption of the resolution, it fell short of having any effect on American foreign policy. Owing simply to the fact that the Trump Administration actively suppressed its publication and wrote a blank cheque to the Saudi Government.

The United States turned a new page under the Biden Administration, as it seeks to calibrate American ties with the Gulf country. From the inception of Biden’s bid for the Presidency, he has portrayed a hard stance against the Kingdom of Saudi Arabia. During his campaign trails, he has gone to the extent of calling the country a ‘pariah’ state. In the short time that he has been in office, he has already reduced arms sales to the country, and the report presented to the Congress a few days ago by the Biden-Harris Administration was the proverbial last nail in the coffin. However, it is still early to determine the exact ramifications the report will have on the American-Saudi relationship and more importantly on the Kingdom’s de facto ruler MBS himself. The Biden administration may seem to be on a war footing undeterred by policies followed by their predecessors, but they have been extremely strategic. Apart from the incessant repetition by the White House Press Office, that decision would be taken keeping in mind that current relationship the two states share, Joe Biden prior to releasing the report also spoke to King Salman, the current head of state. Another anomaly that we see, is a dearth of White House officials rushing to the press to give insights into what the publication of the report means for the Saudis.

In the past few years, it has been evident to lawmakers on Capitol Hill and the intelligence services that Mohammed Bin Salman, wasn’t the top choice to be the leader of America’s closest ally in the Middle East. However, America’s top choice, Muhammad bin Nayef Al Saud, who served as the interior minister and was responsible for successfully countering the Al-Qaeda in the Kingdom, now lives in Canada in exile. The release of the report has just provided ammunition to the gun lying uncocked with the US Congress. Since the report by the Biden-Harris administration, we have already seen the imposition of the ‘Khashoggi Ban’, which is a new VISA policy, that sets new restrictions pursuant to section 21(a)(3)(C) of the Immigration and Nationality Act. The largely unanswered question that remains is how the American officials aim to publicly cooperate with a man who they have held responsible for an act of such nature. A possible divorce driven by public sentiment, or even a temporary souring of relations between the two countries could be a blessing in disguise for the IS and Al-Qaeda. However, another international actor set to benefit is the Islamic Republic of Iran. Ramifications of Joe Biden’s decision to halt arms sales to the Saudis were evident when Iran-backed Houthis rebels were quick to capitalise on this and decided to advance on several fronts. However, in the near future, we need to consider the possibility that America’s decision to distance itself from Riyadh, could very well open doors for China, Russia and may even push the Saudi officials to develop closer ties with the Israelis.

The release of the report, along with growing opposition to the Yemen war and President Biden’s insistence on speaking with King Salman, instead of his son MBS, has heralded a new era in US-Saudi relations. An era that is marked with a host of strategic calculations on the part of the United States, that are aimed at keeping Saudi Arabia at an arm’s length, while being able to exploit its strong position in the Middle East. Like many other acts of geopolitical significance that are often ignored in the hope of a natural solution, I fear this is not applicable in this case. Khashoggi’s death has stirred up feelings against the Saudi Kingdom and the leadership which could very well be directed towards America if they fail to act decisively in the near future.

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WEAVING INDIA’S JOURNEY FOR $5 TRILLION ECONOMY: THE STATE-CENTRIC APPROACH http://www.wiserworld.in/weaving-indias-journey-for-5-trillion-economy-the-state-centric-approach/?utm_source=rss&utm_medium=rss&utm_campaign=weaving-indias-journey-for-5-trillion-economy-the-state-centric-approach http://www.wiserworld.in/weaving-indias-journey-for-5-trillion-economy-the-state-centric-approach/#respond Fri, 19 Mar 2021 03:33:35 +0000 http://www.wiserworld.in/?p=4417 On 15th August 2019, Prime Minister Narendra Modi announced his vision to make India a $5 trillion economy by 2024. In July 2019, the Economic Survey laid out the blueprint for India’s $5 trillion economy. The prime minister announced in his speech that the BJP government has laid down a

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On 15th August 2019, Prime Minister Narendra Modi announced his vision to make India a $5 trillion economy by 2024. In July 2019, the Economic Survey laid out the blueprint for India’s $5 trillion economy. The prime minister announced in his speech that the BJP government has laid down a strong foundation for making India a $5 trillion economy. The Chief Economic Advisor, Krishnamurthy Subramanian also mentioned that India will be moving towards a “virtuous cycle” of savings, investments and exports in the next 5 years to achieve the $5 trillion economy. 

Making India $5 Trillion Economy- What Should India Primarily Focus on?

Before the pandemic struck the entire world, India was expected to become a $5 trillion economy by 2025. The Covid-19 Pandemic had distorted all projections and left the world in an unpredictable state for almost a year. The economies all over the world crashed down due to the lockdowns and global unrest. Data from the National Statistical Office projects a 7.7 percent contraction for FY2021. 

Estimated quarterly impact from the coronavirus (COVID-19) on India's GDP growth in financial year 2020 and 2021
Source: Statista

But even if we look prior to the pandemic, India’s $5 trillion economy had many obstacles that needed focus to achieve the dream. One of the most important is India’s manufacturing sector. India’s manufacturing sector is not strong enough to allow expansion and integration in the global value chain. The Economic Survey pointed out that the global value chain exports could contribute a quarter of the increase in value-added for the $5 trillion goal and generate four million jobs by 2025 and eight million by 2030 via the Make in India initiative. (Reddy & S, 2021)

In order to integrate our manufacturing sector with the GVCs, it is very important to develop the infrastructure with top most priority. One example of this is China. China has done huge investments on infrastructure in the first half of the 20th century and the results of that can be seen now by the entire world. China has rapidly risen in the GVC due to its investment on infrastructure. This has led China to becoming the centre for world production. At this point in time, China is one of the strongest economies and has almost reached the stage of being self-reliant. 

India has announced Atmanirbhar Bharat (self-reliant India) with the view of transforming India into an important global player and making India self-reliant. The campaign has also created confusion in the minds of the MNCs as in the initial stages of the campaign India put a ban on the import of various non-essential commodities. Although these import restrictions were put to encourage domestic production to make India self reliant, these may also be seen as an obstruction in integrating India with the GVC. The import restriction can discourage global investors and in turn harms the long term goal for becoming a manufacturing hub. 

For India to achieve a $5 trillion economy, it has to encourage more and more foreign investments in the country and be as closely integrated with the GVC as possible. The policies made therefore have to be more welcoming for the global investors and MNCs and less restrictive in terms of import tariffs. 

The government should first and foremost focus on infrastructural development in the country in order to improve the manufacturing sector and be able to competitively produce. It should perhaps create a more open trade environment so that there is free trade of goods and services. The infrastructural development can also be useful for the performance linked incentive sectors. In this regard, the government’s Rs 111 lakh crore or $1.4 trillion investments in the National Infrastructure Pipeline can be seen as an important step towards building the required infrastructure. NIP consists of investment from the centre (39 per cent), state governments (20 percent) and private sector (21 per cent). It is very important at this point that the centre and the state governments work in a collaborative manner in order to devise smooth systems and proper and timely implementations of the policies. The central government should be hands on with any shortcomings of the state government so that there is minimum or no harmful repercussions felt over and beyond. It is important to make India so strong that even though India is a labour intensive country, it can have the ability to also be a major exporter of the capital intensive commodities along with labour intensive commodities. (Reddy & S, 2021)

It is as important to develop the traditional labour intensive commodities market so that India holds its foot strong in the global market when it comes to labour intensive commodities as it is one of the major aspects of the Make In India project.

Efforts of States to Achieve $5 Trillion Goal

UP Budget 2021-22 

The UP government on February 22nd brought the state budget to the table of the state Assembly. Chief Minister Yogi Adityanath presented the first paperless budget including ₹ 5,50,270.78 crore for 2021-22. It is about ₹37,410 crore more than the previous year’s budget. The focus of the budget was to make Uttar Pradesh Atmanirbhar and ensure overall development of the state. (Rudrappa, 2021)

Some of the important Budget Highlights:

  1. UP government announced ₹2000 crore for Noida International Airport and also, building electronic city near airport.
  2. UP budget proposed at least ₹640 crore for the overall development of Ayodhya.
  3. The UP government made provision of ₹1,175 crore for metro rail projects. There is a provision of ₹597 crore for the Kanpur metro rail project in the budget presented by Finance Minister Suresh Khanna.
  4. The UP government made ₹7,000 crore provision for Pradhan Mantri Gramin Awas Yojna.
  5. A budget provision of Rs 976 crores for the development of canals, ₹610 crores for Saryu Canal Project, and ₹271 crores for the Eastern Ganga Canal Project were proposed. ₹104 crores was also proposed for Ken Betwa Interlink Canal Project. (D’Souza, 2021)
  6. ₹1326 crore has been given for Delhi-Meerut RRTS and ₹100 crores each for Gorakhpur-Varanasi metro.

The investments on infrastructure by the UP government is one of the key aspects that could help transform India into a global manufacturing hub. The provisions made in the budget also promises to generate employment for the state leading to a higher SGDP. The infrastructural boost will lead the state to become more efficient in its development. With projects like Sabka Saath Sabka Vikas, the UP government has promised to bring taps, electricity, roads, water in every household along with making the state digitally equipped. The Chief Minister in his speech mentioned that the budget focuses on the poor, women, youth and the farmers. 

Bihar Budget 2021-22

The Bihar government announced a ₹2.18 lakh crore budget for 2021-22 with focus on social sector and infrastructural development. The Chief Minister of Bihar also announced a separate department for skill development and entrepreneurship in the state. The Chief Minister announced that the government has made the highest allocation in the education sector worth ₹38,035.93 crore followed by ₹16,835.67 crore for rural development, ₹15,227.74 crore for roads, ₹13,264.87 crore for health and ₹8,560.00 crore for energy. (Bihar’s Rs 2.18 trillion budget for FY22 prioritises social, infra sectors, 2021)

Some of the important highlights of the Bihar Budget:

  1. All villages in Bihar will have the facility of solar street lights.
  2. A budget provision of ₹250 crore for building link roads in rural areas of Bihar.
  3. The state allocated ₹110 crores towards building of new engineering colleges.
  4. Three new medical colleges are already under construction. 
  5. 38 districts of the state have been declared as open defecation free.

The Bihar government has also focused on developing the infrastructure of the state along with improving the rural regions of the state. This inclusive development efforts of the state government will generate more skilled employment and improve the lifestyle of the rural people. The state government has made extra effort in building a separate skill development department in order to increase the skilled employment in the state integrating with the idea of Atmanirbhar Bharat. 

West Bengal Budget 2021-22

The West Bengal government announced its budget in the absence of the Finance Minister of the state. The government has announced a ₹29,96,88 crore budget for 2021-2022. (West Bengal Budget 2021-2022, 2021)

Some of the important budget highlights:

  1. ₹1500 cr allocated for the construction of 20 lakh houses for SC/STs.
  2. ₹50 cr allocated for building the infrastructure of 100 new English medium schools.
  3. Building of 100 new schools for Nepali, Urdu, Kamtapuri and Kurmali language.
  4. 45 lakh construction and transport workers will be given ₹1000 each under the social security scheme.
  5. 100 IAS and IPS aspirants will be trained by the state government along with fooding, lodging and providing stipend.
  6. All kinds of road taxes lifted from January 2021 to June 2021.

The budget of West Bengal has seen a rise in the expenditure on infrastructure 3.9 times. The state’s planned expenditure increased by 7.2 times. The expenditure on social sectors has risen by 5.6 times.These highlights show that the state government is perhaps in link with the national goal but has to do more in terms of investing in the infrastructure. To build a self reliant nation, the state governments have to work in synchronisation with the central government. 

CONCLUSION 

In view of the Modi government’s aim to make India a $5 trillion economy, the state governments’ budgets do perhaps look in sync. The state governments have focused primarily on the infrastructural developments and enhancing the skilled employment in the respective states. It is very important for these states to pull up their sock in order to provide a competitive development strategy. In order for India to become a global leader in terms of exports, it is very important that the two most important factors are strongly built-infrastructure and skilled labour. 

Being a country with the largest youth population in the world, it is our responsibility to stand out and become self reliant along with being a provider for the world. The pandemic has brought in many changes and should be seen as an opportunity to develop new skills and explore the untapped potentials of the country. 

References

Bihar’s Rs 2.18 trillion budget for FY22 prioritises social, infra sectors. (2021, February 22). Business Standard.

D’Souza, C. E. (2021, February 22). UP Budget 2021-22: Yogi Adityanath govt proposes Rs 140 crore for development of Ayodhya. ZEE News.

Reddy, K., & S, S. (2021, January 13). Building a $5-trillion economy. The Indian Express.

Rudrappa, P. (2021, FEBRUARY 22). UP Budget 2021 Live Updates: UP Presents ₹ 5.5 Lakh Crore Budget To Make State “Aatmanirbhar”. NDTV.

West Bengal Budget 2021-2022. (2021, February 22). The Times of India.

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9/11 ATTACK: THE RIFT THAT DEFINES THE EAST AND THE WEST http://www.wiserworld.in/9-11-attack-the-rift-that-defines-the-east-and-the-west/?utm_source=rss&utm_medium=rss&utm_campaign=9-11-attack-the-rift-that-defines-the-east-and-the-west http://www.wiserworld.in/9-11-attack-the-rift-that-defines-the-east-and-the-west/#respond Mon, 08 Mar 2021 10:03:31 +0000 http://www.wiserworld.in/?p=4388 The atrocity of the 9/11 Attack sent ripples across the international arena, if for no other reason than that it was the first direct attack on US soil after the Pearl Harbour debacle; an event that steered multiple divergences, the polarisation of ideas, changed narratives and divided beyond the distance.

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The atrocity of the 9/11 Attack sent ripples across the international arena, if for no other reason than that it was the first direct attack on US soil after the Pearl Harbour debacle; an event that steered multiple divergences, the polarisation of ideas, changed narratives and divided beyond the distance.

However, it was not just the collapse of the Twin Towers and the partial destruction of the Pentagon that made the attack globally monumental. It was what followed post 9/11 Attack – primarily in terms of the US’s counter-response to the attack and secondary in terms of the attack’s impression upon the larger eastern and western ideological realms.

“U.S. Under Attack” was inked as headlines after three commercial airliners were used as bombs to destroy the World Trade Center in lower Manhattan followed by twin towers as well as part of the Pentagon which serves as the headquarters of defence. Another hijacked U.S. airliner Flight 93 crashed in Pennsylvania, supposedly intending to crash into the White House in Washington, DC.

INTRODUCTION

The United States suffered an unprecedented loss of life on September 11, 2001, from what was labelled a “terrorist attack.” Mainly on the basis of data from professional association surveys and government agencies, it was found that the United States and many other countries of the world have been significantly affected by the events and aftermath of that morning’s events.

As an unprecedented attack on a country not usually affected by external terrorism, often cited as an example of leading powers it allows a unique study of how the notion of terrorism changed after the traumatic series of events. As a result of the “9/11 attack”, a number of changes were triggered as the economy, society and civilians recovered, the Arab world and Western allies diverged on the spectrum. Many of the initial logistical changes appear to have diminished over time as things restored normalcy but severed relationships between countries, prejudiced views and discriminatory practices linger on as memoirs of the incident.

WHAT IS TERRORISM?

Coined during the French Revolution to describe “the reign of terror” the term originates from the Latin word “terrere,” which reflects frighten or tremble and had positive connotations. Today, terrorism has transformed into a more menacing spectre where throughout the years, various scholars have attempted to define what constitutes ‘terrorism’.

Yet, the term is so loaded with conceptual problems that a totally accepted universal definition of it ceases to exist and the irony is that the recurrent theme of violence has become the daily part of the political drama of modern times. Where the U.S. Department of Defence defines it as “the calculated use of unlawful violence or threat of unlawful violence to inculcate fear; intended to coerce or to intimidate governments or societies in the pursuit of goals that are generally political, religious, or ideological”.

On the other hand, the Arab Convention for the Suppression of Terrorism quotes it as, “any act or threat of violence, whatever its motives or purposes, that occurs in the advancement of an individual or collective criminal agenda and seeking to sow panic among people, causing fear by harming them, or placing their lives, liberty or security in danger, or seeking to cause damage to the environment or to public or private installations or property or to occupying or seizing them, or seeking to jeopardise national resources is – terrorism”.

Terrorists have a myriad of potential targets in the world; they strategically aim to disrupt high-profile landmarks, crowded public places with low security, targets that would hurt their enemy’s economy, and anywhere that could cause maximum harm to their enemy’s citizens. Perhaps it is in this regard that the attacks on the WTC affected the health of US civilians in uncountable ways: it created psychological distress for millions, exacerbated mental disorders among the younger segment of groups and jeopardised social cohesion which functions as the founding pillar for mental health.

THE EVENTS OF 9/11 ATTACK

Described by the U.S. Department of State as the deadliest international terrorist attack in human history it involved four separate but coordinated commercial aeroplane hijackings by 19 hijackers belonging to the Al Qaeda terrorist branch resulting in over 25, 000 injuries with $ 10 billion worth of property damage.

As all the aeroplanes had just taken off and were filled with jet fuel for their transcontinental flights, their intentional crashes into buildings had the effects of a bomb exploding as the fuel ignited upon impact and hundreds suffered the cost.

The 19 hijackers on 9/11 were described as ‘terrorists’ who came from various Middle Eastern countries. NBC Nightly News (2002) said the 19 hijackers all entered the United States illegally as with over 6,000 mi of land borders, 95,000 mi of seacoast, guarding all possible entrance points into the United States and keeping out any foreign entities that can accelerate chaos is almost impossible.

GLOBAL EFFECTS & GOVERNMENTAL MEASURES

The United Nations passed a resolution condemning the 9/11 attack while Interpol focused its attention on bringing justice by organising an 11 September Task Force in response to the attacks.

The attacks on 9/11 in the United States have directly and indirectly drawn many other countries into the fray against terrorists by tightening their security guidelines to even racial profiling measures.

The 9/11 attack triggered a number of responses within the global hegemony where the initial tenor of the populace in the United States was shock, sorrow, and outrage. Views were highly foreshadowed as reports of hate crimes and acts of discrimination against Muslims and Arabs became a regular phenomenon. While on the other end of the spectrum people opened up their hearts and pockets in an initial outpouring of donating blood and money to help the victims who bore the brunt of the tragedy. Employees became more oriented towards spending time with loved ones and balancing work and home time as well extending a hand of help to those in need. The testing times brought out the best spirit in people as the citizens of the United States were drawn much closer together; there was a significant increase in cohesion of the populace.

Stringent government changes were put in order as greater coordination of the intelligence and law enforcement communities like the Central Intelligence Agency (CIA) and FBI was emphasised. Forty government agencies and units were assigned to collect intel on terrorism by employing multiple mechanisms.

A cabinet-level Department of Homeland Security was formed in the national government to overlook the supervision while congress laid the stone for the formulation of the Transportation Security Administration to hire and employ over 40,000 federal baggage screeners for checked baggage at the 429 U. S. airports.

President Bush declared “War on Terrorism” and received tremendous public support where his approval rating as President soared to 70% and solidified his image as a ‘strong’ leader.

There was an incursion into Afghanistan by the United States and its allies to find and destroy those guilty for 9/11 where the U.S. after the infamous invasion of Iraq; officially listed it under the U.S. Department of State as a sponsor of terrorism.

Even though the U.S. retaliated after the great shock but its economy was adversely affected by business spending dropping significantly. Analysts noted how terrorist strikes were the single greatest loss for the insurance industry in 2001 while the travel industry also decimated. Employers were mentally affected by the 9/11 attack in numerous ways and thus the importance of crisis management teams and plans took centre stage, where disaster plans were revised and meetings away were drastically curtailed. Increased security procedures led to the slower and more costly movement of services, and over-cutting costs often not viable for small business to withstand. Bernasek (2002) estimated that it would cost the United States an extra $151 billion a year because of the 9/11 terrorist attacks including an extra $6 billion for people costs such as extra absenteeism. Employers took leaves of absences and time off to recover from the troubling events of the 9/11 attack. With the passage of time, however, the initial effects of 9/11 declined and life in the United States generally reverted to pre-9/11 behaviours where national surveys have shown little lasting change on the U.S. population and economic market since the 9/11 attack.

POLARISATION OF VIEWS POST 9/11 ATTACK

Ideological and political conflict between the Western and Arab and Muslim world is one of the most dominant phenomena that override the relations across global issues of the present era where struggle and strive is mediated, reproduced, and circulated mostly by headlines and media. While U.S. and Western media have previously dominated the global mediascape, the emergence of the new Arab public sphere opens the way for productive dialogues, better mutual understanding and to curb hostility that has seeped in over years of projecting one-sided narratives.

One still needs to understand the need where Western mechanisms need to break with stereotypes of Arabs and Islam, incorporate more Muslim voices into its programming and provide a safe platform for real dialogue and debate rather than ideological posturing and polarisation.

Likewise, the emergent Arab public sphere should be open to Western dialogue as well as the diversity of views in its region as these opposites need to take into account how it will be one of the challenges in the coming years and calls for critical communication, interaction and deliberation between the Middle East and the West which has been so fraught with danger and will no doubt continue to be a site of immense importance and conflict.

THE DIVIDE

Following the September 11, 2001 attacks on the United States, Islam and Muslims started to come to the forefront of the Western media, albeit not for very positive reasons; it flared the already existing one-sided view westerners kept of the eastern world. Because Osama Bin Laden cited religious motives for his criminal attacks, a debate started brewing in the Western media over the real essence of Islam and whether it encouraged violence and promoted hatred, particularly against non- Muslims.

Many media outlets referred to the 9/11 terrorists simply as ‘‘Muslims,’’ which fuelled stereotyping further and did nothing to help stop the verbal and physical attacks taking place against Muslims in the U.S. at this critical time; it was noted how after the events of 9/11, ‘‘the U.S. media immediately fell back on the prevailing —and stereotyped—narrative about Arabs and Muslims and reverted to its historic tendency to present the world, as Henry Kissinger’s quotes, ‘a morality play between good and evil’’.

Despite the fact that all Arab countries condemned the attacks and took a solid stance against ‘ terrorism’ in all forms, for the most part, voices communicated through the mass media still failed to differentiate between Arabs and Muslims, on one hand, and terrorists, on the other.

Political scholars in Fairness and Accuracy in Reporting (FAIR, 2001) noted that ‘‘many media pundits focused on one theme: retaliation; while not paying heed to what follows in the aftermath.
For example, on September 12, 2001, Steve Dunleavy wrote in the New York Post: ‘‘The response to this unimaginable 21st- century Pearl Harbor should be as simple as it is swift—kill the bastards. A gunshot between the eyes, blow them to smithereens, poison them if you have to. As for cities or countries that host these worms, bomb them into basketball courts.’’

Even leaders of importance who uphold the ideals of rationality and diplomacy took sides like the former U.S. Secretary of State Lawrence Eagleburger commented on CNN, ‘‘There is only one way to begin to deal with people like this, and that is you have to kill some of them even if they are not immediately directly involved in this thing’’. Statements like this coincided with and may have contributed to an increasing anti-Muslim sentiment which slowly seeped into other western nations who believed they were ‘‘doing the U.S. a favour.’’

The Arab Dilemma

It is difficult to draw a conclusion with one side as dual variables have functioned simultaneously where the Western media have produced dominant negative stereotypes and demonised Islamic fundamentalism, and in turn how Arab media have promoted negative images of the West and offers a rigorous narrow crevice to hold dialogue.

Chomsky (2001) asserted that the mainstream media in the U.S. constitutes a well- run propaganda systems that hold the immense capacity ‘‘to drive people to irrational, murderous, and suicidal behaviour’’ where citizens need to resist the notion of responding to terrorist crimes and must hold the wisdom to see both sides of the story.

During the post-9/11 era tensions and hostilities have been intensified due to the Bush Administration “war on terror” and Osama bin Laden and other radical Islamic groups promoting “Jihad” where Bush and bin Laden’s rhetoric and worldview and how their binary discourses and extremist rhetoric have shaped the representations of each side in their respective media.

This bias was further aggravated by what could be called ‘‘jihad journalism’’ a concept narrowly created to meet the partisan need where such slanted coverage was ‘‘the hallmark of the post-9/11 era’’ and a ‘‘a result of racist jingoism”.

CONCLUSION

A decade has passed since the terrorist attacks of September 11, 2001. Most of us remember where we were when we learned of the attacks, although our memories of the event and of our feelings that day may not be as accurate as we suspect as it is a known fact how the 9/11 attack did far more than destroy buildings and kill thousands of innocent people, it divided beyond boundaries and devastated perceptions beyond mending. They interrupted routine patterns and tugged at our social fabric, not simply in New York City, but across the global platform. They shattered a sense of security and perceptions of vulnerability among residents of the Western world even those who did not know anyone who died that day have been touched by the tragedy in one way or another. It now falls on to us to usher in peace, leave what’s all left behind and look beyond what is projected.

BIBLIOGRAPHY

Abbas, T. (ed) (2007). “Islamic Political Radicalism in European Perspective”. Edinburgh: Edinburgh University Press.

Andrew Silke. ( 2003) . “Beyond Horror: Terrorist Atrocity and the Search for Understanding” . Studies in Conflict and Terrorism 26(1) ,pp. 37–60.

Bergen, P. (2006). ‘What were the causes of 9/11?’

Bobbitt, P. (2008). “Terror and Consent: The Wars for the Twenty First Century”. London: Penguin Books.

Maxwell Taylor and Ethel Quayle ( 1994 ) . “Terrorist Lives” . London: Brassey’s, Publication

Richard A. Clarke. ( 2004 ) . “Against All Enemies: Inside America’s War on Terror” .New York: Free Press, pp. 227–238.

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THE DILEMMA OF MIDDLE EASTERN CINEMA http://www.wiserworld.in/the-dilemma-of-middle-eastern-cinema/?utm_source=rss&utm_medium=rss&utm_campaign=the-dilemma-of-middle-eastern-cinema http://www.wiserworld.in/the-dilemma-of-middle-eastern-cinema/#respond Mon, 01 Mar 2021 16:34:13 +0000 http://www.wiserworld.in/?p=4357 Cinema arrived in the middle eastern countries around the beginning of the twentieth century. It is believed that cinema was brought into most of the Arab countries by Pathé Frères or the Lumière Brothers. Middle eastern cinema has long been neglected by the world. Western cinema dominates the sphere but audiences

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Cinema arrived in the middle eastern countries around the beginning of the twentieth century. It is believed that cinema was brought into most of the Arab countries by Pathé Frères or the Lumière Brothers. Middle eastern cinema has long been neglected by the world. Western cinema dominates the sphere but audiences are now growing tired of the outdated narratives of the west. Therefore, middle eastern cinema comes as a breath of fresh air for cinephiles all over the globe. Despite producing a lot of quality content, Middle Eastern Cinema has to face a lot of trials and tribulations. This has to do with the dominant cultural and religious beliefs of these countries, where cinema is frowned upon.

Middle Eastern Cinema Explained

Middle Eastern Cinema is an amalgam of multiple film industries of Bahrain, Egypt, Iraq, Jordan, Kuwait, Lebanon, Palestine, Oman, Qatar, Saudi Arabia, Syria, United Arab Emirates, and Yemen. It can’t be studied as a single entity because each nation has its own film industry with a distinct history and cultural influences. But here also, space is dominated by Egyptian cinema as it has the largest commercial film market in the middle east. In recent years, the Middle East has given some of the finest films to the world. The emergence of the Middle Eastern Film Industry has not only put it on the global lens but has also contributed towards debunking the religious and cultural stereotypes surrounding the Middle East. They have used their films to reclaim their voice and to tell their story from their own perspective. Middle eastern cinema touches upon the issues of gender, identity, the physical and psychological consequences of the wars and conflicts.

Problems Faced by Middle Eastern Film Industry

There is no doubt that  Middle Eastern Cinema has come a long way and is producing some of the finest works. But the road is not easy. The film industry faces a lot of problems because of the political and cultural institutions in the country. The governments in the majority of Arab nations do not consider the film industry as an important sector. Filmmakers with immense talent, often have to struggle because of a lack of opportunities and funds. According to Farida Marei, “The government usually does not give any help or gives a little in rare cases. Cinema is not one of the priorities on their agenda as they look at cinema as pure entertainment and therefore it comes at the bottom of their list”. Lack of government support is one of the main reasons why so many brilliant film ideas don’t materialize as the filmmakers don’t have the necessary means.

Censorship and demonisation of films and the film industry is another major issue that plagues the Middle Eastern film industry. Middle Eastern countries have stringent censorship laws. Countries like Bahrain, Iran, Saudi Arabia, Egypt, Turkey, United Arab Emirates, censor their media and films heavily. In fact, Turkmenistan runs the third most stringent censorship program in the world and all foreign publications and non-government libraries are banned. These censorship policies apply to the film industry as well. A lot of films fail to get the approval of the government and hence never reach the audiences. According to middle eastern censorship laws, any material dealing with government policies, religion or any kind of sexual activity is prohibited. Farida Marei gives a few examples of the implications of stringent censorship laws- “There are many examples in this direction – the films Five Doors (Khamsah Bab), and The Road of Love (Darb al-Hawa) were both denied approval until the writer removed some intimate scenes. Even after removing them and after the films were ready for screening, they were both banned because there was still too much intimacy (in their opinion)”.

One of the main reasons why these strong censorship laws aren’t going to be relaxed anytime soon is because of the huge support from the masses. In middle eastern countries, religion is very strong and influences the masses. Religion and cultural beliefs could be the major factors why the films are demonised in the middle east by the government and the majority of the population, alike. Northwestern University in Qatar, in partnership with Doha Film Institute, conducted a survey ‘Entertainment Media Use In The Middle East: A Six nation Survey’. The results of this survey are a clear indicator that the people of the middle eastern nations heavily support the censorship laws and the restrictions on the media and entertainment industry. According to the survey-

“The large majority of the people surveyed believe entertainment should be more tightly regulated when it comes to violent and romantic content, and that some scenes should be deleted or whole programs banned if some people find them offensive (about seven in ten agree with each of these statements). Conversely, less than a third expresses the opposing opinion that films and television shows should be shown in their entirety even if some people find the content inappropriate (29%).”

The survey also uncovers the extent to which cultural beliefs influence the censorship laws as- “About eight in ten of those with strong feelings about cultural traditions support the regulation of violent and romantic content and also support banning or deleting offensive content, compared with two-thirds of those who are less concerned with preserving their cultural traditions”.

Conclusion

Even though the situation seems pretty bleak, there is still a ray of hope. Despite the stringent censorship laws and various other restrictions, The Middle Eastern film industry continues to produce some of the most profound and moving films. Even though the filmmakers have to face a lot of problems in order to produce good quality cinema and to ensure that it reaches a wide range of audience, they haven’t given up. A lot of filmmakers have repeatedly challenged the strict laws of the government in court. And a lot of times the results have favoured them. This is a great sign that middle eastern cinema is flourishing and will soon overcome the dilemma of censorship and demonisation to realise its full potential.

Featured Image: Still from Ghadi by Amin Dora

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INDIA-CHINA BILATERAL RELATIONS: CONFRONTATION & CONCILIATION http://www.wiserworld.in/india-china-bilateral-relations-confrontation-conciliation/?utm_source=rss&utm_medium=rss&utm_campaign=india-china-bilateral-relations-confrontation-conciliation http://www.wiserworld.in/india-china-bilateral-relations-confrontation-conciliation/#respond Thu, 25 Feb 2021 12:03:31 +0000 http://www.wiserworld.in/?p=4336 The last six decades of India-China relationships have been replete with instances of suspicion, hostility as well as antagonism which used to be earlier marked with bonds of mutual mistrust, friendliness and cordial atmosphere. The challenge has always been to bridge the differences of opinion from both sides and devise

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The last six decades of India-China relationships have been replete with instances of suspicion, hostility as well as antagonism which used to be earlier marked with bonds of mutual mistrust, friendliness and cordial atmosphere. The challenge has always been to bridge the differences of opinion from both sides and devise a common consensus that both of these growing powers of the world can adhere to and agree to.

One shouldn’t presume that Beijing and New Delhi have always been on the opposite poles of the spectrum as serious attempts have always been made to facilitate discussion and promote diplomacy in its truest essence. From the Panchseel Agreement of 1945 to the recent Galway valley violence of 2020 – do these countries still believe in dialogue for peace’ as the belief that the Ministry of External Affairs holds or has– Hindi-Chinni Bhai-Bhai period already becoming into Hindi-Chinni bye-bye period.

While promising a stable bilateral relationship it is imperative to note how cross-cutting sensitive issues of the border dispute, country contours, diverging projections of geopolitical interest, security ties with other powers, close affiliations with Pakistan and the United States forces us to look at multiple vantage points in this already complicated affair – thus raising the burning questions whether as INDIA and China both take over the world stage are they willing to ‘confront’ and ‘concile’?

“Today, being the biggest developing countries in the world, China and India are both committed to developing their economy and raising their people’s living standards’’

Li Peng

INTRODUCTION

The past 60 years of India- China relations have signalled that both countries have been making a concerted effort to embark on seeking mutually acceptable resolutions to the main contention relating to a boundary issue. The major provocations which confront this asymmetrical correspondence been to build mutual trust and confidence. The trust deficit which plagues both sides has decimated the robustness of bilateral relationships where the element of trust is an essential pillar in maintaining a sustained balance. Somehow, the lack of these essential components of confidence-building feigns grounds of hostility towards one – another and gives rise to biases dwelling on power dynamics.

The deepening of relations can be traced to the signing of the Strategic and Cooperative Partnership for Peace and Prosperity in 2005 and A Shared Vision for 21st Century in 2008 which serves as a reminder of our neighbourhood while laying foundations for a future that envisions us growing together; however it’s saddening to see how we are walking on eggshells now as our cordial relations reach a breakthrough.

Undoubtedly, India and China have emerged as the two rapidly growing economies and their bilateral relationship to a greater extent has assumed global and strategic relevance. The objective of this article will be to assess and analyze the broad overview of India-China relations, throwing light on issues that fragment them while we chart our future prospects of convergence. It is of utmost importance to questions what lies the way forward for both the ‘dragon’ and the ‘peacock’ as uncertain times dawn and reciprocal development is the need of the hour.

EVOLUTION OF RELATIONSHIP

Taking a glimpse of the past 70 years gone by, China-India relations have moved ahead despite wind and rain and have followed their own course of growth despite all odds. Since the 1950s, the leaders laid the stone to establish diplomatic relations between China and India, as they Cooperatively championed the ‘Five Principles of Peaceful Coexistence.’

As consensus was maintained in the era of initial cordiality the Panchsheel Agreement was signed which ascribed the ‘guiding principles’ of India-China bilateral relationship as its ideals of ‘non-interference in each other’s internal affairs while respect for territorial unity, integrity and sovereignty’ coursed through both nations.

However, it was Zhou Enlai’s trip to India in June 1954 which was a mark of China’s intent to uphold it promises while also reinstating another historic event where a communist head of government was making a peacetime visit to a non-communist state.

The animosity and hostilities gained momentum during the decade of 1959 – 1976, where this rough patch resulted in the infamous war of 1962. During this period, there was a sharp shift in the perception of China where negative connotations of it being seen as an aggressive neighbour that sought to humiliate a democratic India garnered headlines. A dramatic transference of ideologies as well as values of peaceful and friendly consultation,

established strategic and cooperative partnership for peace and prosperity, while achieving all-round development of bilateral relations marked the much of 1980s.

In the post-1998 scenario after India detonated a nuclear device, China was a staunch critic of this development thus putting a roadblock in their relationship. However, the situation changed after the realisation set in about each other’s contribution to the global economy and to a greater extent started broadening the then-existing bilateral ties. The strain in the relationship was replaced by an era of cooperation in the economic sphere while disagreements on respective political fronts.

While tracing the genealogy of Sino – Indian relations we come across the phase commenced by the Chinese President Xi Jinping and Indian Prime Minister Narendra Modi by initiating the concept of “hometown diplomacy” which ranged from informal summits in Wuhan and Chennai to strategic communication on long-term issues of global and regional importance while agreeing to facilitate development and close partnership

Today’s achievements of China-India relations embody the concise and regular efforts of several generations from whom we need to draw inspiration from the past as experiences of the present tragically make us critical of each other’s intentions.

As we stand on the brink of a new starting point present-day decision-makers should draw wisdom from our thousands of years of civilisations and explore authentic ways to stay true to the essence of ‘ brotherhood’ envisioned years ago as we look forward towards; “enhancing mutual trust, focusing on cooperation, managing differences and seeking common development”.

CHALLENGES TO THE INDIA-CHINA PARTNERSHIP

Indian President Ram Nath Kovind and Prime Minister Narendra Modi often resonate with the philosophy, where the whole world is seen as a family of the whole rather than functioning in splinters, which runs parallel with the Chinese philosophical concept of “universal peace” and “universal love” thus reiterating the belief that the “Dragon-Elephant Tango” does hold the potential to create a new chapter in building a community with a shared future if they agree to make credible and foresighted peaceful endeavours towards the issues of contention like :

  • To devise an early settlement of the border problem and to prevent the enduring stalemate from completely undermining the confidence that remains between the two nations
  • To reconcile regional strategies in South Asia, Central Asia, ASEAN, and the Indian Ocean;
  • To promote confidence-building measures and eliminate misperceptions while avoiding the misreading of each other’s strategic intentions,
  • To envisage each other’s core interests and strategic sensitivities
  • To reinforce the bolstering effect of vibrant trade, economic links and developmental ties in sustaining a stable bilateral relationship;
  • To breathe more substance into the existing framework of the declared Sino-Indian strategic partnership.

THE WAY THAT LIES AHEAD

This journey of facilitating change and strengthening the relationship needs to be steered by mastering the four keys of “leading, transmitting, shaping and integrating” – the basics of enhancing trust and to instil confidence amongst one – another.

“Leading” pertains to reaching consensus and guide the direction of the development of bilateral relations under the guidance of leaders. “Transmitting” means to transmit the leaders’ consensus to all levels as they get translated into tangible cooperation and outcomes. “Shaping” refers to go beyond the mode of managing differences while accumulating the positive momentum of shaping bilateral relations. “Integrating” at the end concerns strengthening exchanges and cooperation while promoting convergence of interests and achieve common development.

There is no doubt in saying that the levels of engagement between India and China have increased certainly but India, at the same time, requires to move forward with a sophisticated approach to deal with the emerging strategic challenges being emanating from China. Power dynamics often remain at the core of weak reciprocal agreements however this holds no vitality in the context here as, despite the fact that China has become increasingly assertive not only at the regional level but also at the global level, India has not shown any displeasure so far in strongest terms.

In the current circumstances, it is obvious that trade has come to be viewed as an increasingly important facilitator of relations especially in the shadow of lingering political mistrust as issues ranging from the long-running protracted border dispute to China’s close affiliations with Pakistan to India’s cordial allegiance with the US defies the purpose of simplifying the conflict.

The signing of an Agreement on “Political Parameters and Guiding Principles for the Settlement of the Border Dispute, by both India and China is a major stride in moving ahead in terms of reaching a consensus on this major irritant while also joining hands in a promise to maintain peace and tranquillity on the border front. But, at the same, it’s needless to highlight that this requires a careful assessment especially on the intent and declarations of outcomes.

China has always been a hardcore follower of following the tenets of the ‘Monroe Doctrine’. The attempt has always been to deny access to other powers in the region that it perceives as exclusively within its sphere of influence. As the time has come to breathe more substance into the existing framework of strategic partnership it is essential on the part of India to remind Beijing how these stipulated actions have been damaging the interests of other regions especially to the countries in the East and South-East Asia.

In the long term, neither Indian nor Chinese defence strategists can rule out the possibility of a renewed confrontation over the disputed territory (Tibet, Kashmir, Myanmar, or the Indian Ocean ) as China becomes the other alternative unchallenged power and India continues to increase its circumference of influence thus signalling that a Sino-Indian rivalry in southern Asia may well be a dominant feature of future Asian geopolitics of the twenty-first century thus compelling the regional actors to choose sides. The nature of the rivalry will be facilitated by how domestic political and economic developments, as well as internal mechanisms of these two countries, affect their power, their outlooks, and their foreign and security policies on the international platform. On the flip side, it can also be noted that while they are competitors for power and influence in Asia, China and India also share interests in maintaining regional stability as well as exploiting economic opportunities while promoting regional cooperation – all of which could act as indispensable factors in influencing their relationship.

Last but not least, there comes a pressing necessity where one under these idealistic terms of co-operation, unity and oneness must not forget the real question where countries wonder: ‘WHETHER CO-OPERATION AND COMPARATIVE ELEMENTS IN BETWEEN POWERFUL WORLD POWERS COEXIST ?’

BIBLIOGRAPHY

Keshab, Chandra & Ratha, (2014); ‘India-China Bilateral Relations “

Kumar, R. (2007), “Cultural and Economic Relations between India and China”

Nehru, J. (1946), “The Discovery of India”, Oxford University Press; pp 30-42 .

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CHILD BENEFITS SCANDAL AND COLLAPSE OF DUTCH GOVERNMENT http://www.wiserworld.in/child-benefits-scandal-and-collapse-of-dutch-government/?utm_source=rss&utm_medium=rss&utm_campaign=child-benefits-scandal-and-collapse-of-dutch-government http://www.wiserworld.in/child-benefits-scandal-and-collapse-of-dutch-government/#respond Mon, 22 Feb 2021 12:42:36 +0000 http://www.wiserworld.in/?p=4328 The Netherlands is a country that is known for being a welfare state. It is evident with the statistics results- it is having one of the lowest income inequality in the European Union (EU). Several benefits are provided to the citizens so that they could live a respectable livelihood. However,

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The Netherlands is a country that is known for being a welfare state. It is evident with the statistics results- it is having one of the lowest income inequality in the European Union (EU). Several benefits are provided to the citizens so that they could live a respectable livelihood. However, things started deteriorating due to the child care subsidies scandal that hit the country at the beginning of the year. It eventually resulted in the government’s collective resignation as the Dutch Prime Minister Mark Rutte and the entire cabinet resigned on January 15, 2021. Mark Rutte was one of the longest-serving leaders in the world. [1]

Earlier, Prime Minister Mark Rutte was against the decision of resigning and subsequently dissolving the coalition government. He insisted that there is a need to have political stability in the wake of the pandemic. However, the coalition parties believed that a political backfire was bound to happen, and the consequences were unavoidable after the release of the parliamentary report. [2] 

It was only after this that in a press conference the Prime Minister said: “We are of one mind that if the whole system has failed, we all must take responsibility, and that has led to the conclusion that I have just offered the king, the resignation of the entire Cabinet.” [3]

With this statement, he confirmed that he and his government take full responsibility for the scandal and submit their resignation to King Willem-Alexander van Oranje. [4] 

At the same time, he reaffirmed that although he has resigned, he will play the role of the government’s role until the next general elections scheduled on March 17 this year. As per many political experts, there is a likely shift to the Dutch social policy left after this scandal. Nonetheless, one cannot deny that respite the resignation, and the Prime Minister has instead been able to escape relatively untouched successfully.

What Is the Child Benefits Scandal?

In the Netherlands, childcare is private. Under the tax department’s earlier policies, parents had to pay for childcare, but they did get subsidies that depended on their income. However, after Mark Rutte took over as the Prime Minister in 2010, several changes were made to the anti-benefit fraud laws. These measures were further taken in 2013 after authorities reported illegal methods used by Bulgarian crooks to collect such payments. [5]

With the policies’ changes, the tax department was given more power to make sure that such misuse of benefits does not occur. Also, this allowed the tax department to compensate for the seized funds.

However, things soon started going downhill when the negatives of these laws started impacting the Dutch citizens. Several parents lost both benefits and were further asked by the authorities to repay the child benefits that they had received in the past. It affected over 26,000 families, of which 10,000 households were forced to repay benefits. It led to bankruptcies, divorces and unemployment among those people. [6] Even when the citizens contacted the authorities with their grievances, there was no genuine response. [7] 

These complaints soon started piling up and finally in 2017, the government-appointed an official to look into these complaints. On a thorough check, it was observed that a disproportionate number were of immigrant parents who lost the child benefits. When the need for further information was required for evidence gathering, the parliamentary inquires got only a little information from the ministries with most of the information blacked out. However, one thing was exact, and civil servants had cut child benefits to families from 2013 to 2019. [8]  

By the end of 2019, an estimated amount of € 500 million, about €30,000 ($36,300) for each family was set aside. [9] Also, the current scheme was decided to be expanded. and expanded compensation was set aside when the government accepted its mistake, although payments were not made. [10]

The final nail in the coffin was the parliamentary report, [11] that brought out the government had falsely accused several parents of tax defrauding. It is a grave injustice done to the people of the Netherlands. In a separate investigation, the Dutch Data Protection Authority concluded that tax inspectors had discriminated against citizens with dual nationality. [12] 

In November, a report [13] ranked the Netherlands government is considered a leading global tax haven for large corporations. So the government chasing the individuals for such small amounts thus did not go unnoticed.

Families Reaction to This Scandal

Several families have been affected by these mishaps on the government’s side. So, they are suing the government. Ornaldo Kadir is an attorney who is currently representing over 600 families stated that it was predominantly immigrant Dutch citizens that were target due to the method of ethnic profiling. It used a particular algorithm that characterized immigrant dutch citizens of dual nationals to be a fraudster. Not only that, but even missing signatures were considered as a parameter by the tax authorities to brand the people as frauds. It was not only an injustice but also a violation of the constitution. [14]

Way Ahead

Several ministers such as Health Minister Tamara Van Ark, Finance Minister Wopke Hoekstra, and former Tax Minister Menno Snel and opposition Labour Party leader Lodewijk Asscher have been named court documents.

The Leader of the Opposition Labour Party, Lodewijk Asscher who held the Social Affairs Minister, office from 2012-2017 has also stepped down from his current position due to the “unheard justice” done to people the Netherlands. It was his resignation that forced Prime Minister Mark Rutte to revisit his position on the issue. Eric Wiebes, Economic Affairs Minister, also resigned and stated that he would not be a part of the current guardian government. [15]

With the general elections scheduled in March, the current child benefits scandal is likely to significantly less impact Prime Minister Mark Rutte’s popularity. According to polls, it is expected that his People’s Party for Freedom and Democracy is likely to win a fourth term if he gets the largest share of votes. In other words, Mark Rutte’s VVD party is ahead of the far-right leader Geert Wilders’s party. If he wins, Prime Minister Mark Rutte would continue as the government’s head by forming a new coalition. [16]

With this scandal, the Netherlands in the third European country to be caught up in a political crisis. Earlier, Prime Minister, Giuseppe Conte had to resign due to falling in the majority after their coalition party led by Renzi backed out and also the government in Estonia had to resign due to a corruption scandal.

References

[1] Erdbrink, Thomas. “Playing by the Rules: Dutch Leader Offers a Sober Contrast in a Brash Era.” The New York Times, The New York Times, 2 June 2020, www.nytimes.com/2020/05/28/world/europe/rutte-dutch-netherlands.html.

[2] Schaart, Eline. Mark Rutte Pulls Plug on Dutch Government, PLANS Immediate Return. 15 Jan. 2021, www.politico.eu/article/dutch-government-resigns-over-childcare-benefit-scandal/.

[3] Press, Associated. “Dutch Prime Minister Mark Rutte and His Entire Cabinet Resign over Child Welfare Scandal.” Free Press Journal, 15 Jan. 2021, www.freepressjournal.in/world/dutch-prime-minister-mark-rutte-and-his-entire-cabinet-resign-over-child-welfare-scandal.

[4] “Dutch PM Mark Rutte and His Entire Cabinet Quits over Welfare Scandal.” Hindustan Times, 17 Jan. 2021, www.hindustantimes.com/world-news/dutch-pm-mark-rutte-and-his-entire-cabinet-quits-over-welfare-scandal-101610900452800.html.

[5] “Netherlands Uncovers $120m ‘Bulgarian Fraud’ Benefits Scam.” BBC News, BBC, 25 June 2013, www.bbc.com/news/av/world-europe-23043543.

[6] “Dutch Government Resigns over Child Benefits Scandal.” The Guardian, Guardian News and Media, 15 Jan. 2021, www.theguardian.com/world/2021/jan/15/dutch-government-resigns-over-child-benefits-scandal.

[7] Berg, Stephanie van den. “Dutch Government Quits over ‘Colossal Stain’ of Tax Subsidy Scandal.” Reuters, Thomson Reuters, 15 Jan. 2021, www.reuters.com/article/us-netherlands-politics-resignation-idUSKBN29K1IO.

[8] Amaro, Silvia. “Dutch Government Resigns after Childcare Benefits Scandal.” CNBC, CNBC, 15 Jan. 2021, www.cnbc.com/2021/01/15/dutch-government-resigns-after-childcare-benefits-scandal-.html.

[9] “Dutch Rutte Government Resigns over Child Welfare Fraud Scandal.” BBC News, BBC, 15 Jan. 2021, www.bbc.com/news/world-europe-55674146.

[10] “Dutch Government Faces Collapse over Child Benefits Scandal.” The Guardian, Guardian News and Media, 14 Jan. 2021, www.theguardian.com/world/2021/jan/14/dutch-government-faces-collapse-over-child-benefits-scandal.

[11]www.tweedekamer.nl/sites/default/files/atoms/files/20201217_eindverslag_parlementaire_ondervragingscommissie_kinderopvangtoeslag.pdf.

[12] Markus, Niels. “Belastingdienst Werkte Zeer Kritische Autoriteit Persoonsgegevens Tegen.” Trouw, 17 July 2020, www.trouw.nl/binnenland/belastingdienst-werkte-zeer-kritische-autoriteit-persoonsgegevens-tegen~b69beed9/.

[13] The State of Tax Justice: Tax Justice in the Time of COVID-19. Nov. 2020, The_State_of_Tax_Justice_2020_ENGLISH.pdf.

[14] “Dutch Government Quits over ‘Colossal Stain’ of Tax Subsidy Scandal.” Mint, 15 Jan. 2021, www.livemint.com/news/world/dutch-government-quits-over-colossal-stain-of-tax-subsidy-scandal-11610728718467.html.

[15] Kok, Laurens. DPG Media Privacy Gate, 14 Jan. 2021, www.ad.nl/dossier-vertrek-asscher/kabinetsval-dichterbij-blijven-zitten-terwijl-asscher-wel-zijn-conclusies-trekt-is-lastig-uitlegbaar~aff58082/.

 [16] CBS News. “Dutch Prime Minister Mark Rutte and His Entire Cabinet Resign over Child Welfare Scandal.” CBS News, CBS Interactive, 15 Jan. 2021, www.cbsnews.com/news/dutch-government-cabinet-mark-rutte-resign-child-welfare-scandal/.

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MASSIVE BOOST IN INFRASTRUCTURE OF KASHMIR: A LONG-AWAITED GOOD NEWS! http://www.wiserworld.in/boost-in-infrastructure-of-kashmir/?utm_source=rss&utm_medium=rss&utm_campaign=boost-in-infrastructure-of-kashmir http://www.wiserworld.in/boost-in-infrastructure-of-kashmir/#respond Sun, 21 Feb 2021 13:58:45 +0000 http://www.wiserworld.in/?p=4318 A Historical Background of Infrastructure in Kashmir Jammu and Kashmir is a region bordered between India and Pakistan and has been in conflict since British rule. Both the nations claim the mountainous valley to be part of their respective nations and thus has been in an ever long political dispute

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A Historical Background of Infrastructure in Kashmir

Jammu and Kashmir is a region bordered between India and Pakistan and has been in conflict since British rule. Both the nations claim the mountainous valley to be part of their respective nations and thus has been in an ever long political dispute (Ishfaq-ul-Hassan, 2018). For the longest time, Kashmir has been a victim of terrorism, unstable political situation and to top that, infrastructure has also been one of the major issues. The difficult terrain of Kashmir makes it especially challenging for construction and thus has been lagging when compared with most of the other states. Kashmir was for a long time, the princely state and the only Muslim majority state which joined India in 1947. Both India and Pakistan have thereon captured parts of Kashmir but are still in a tiff to have a bigger portion of the state.

An Overview of the Infrastructure Scenario of Kashmir

Infrastructure in Kashmir which includes health, education, tourism, industrial development has lagged for an exceptionally long time.  A survey of the Union Ministry of Drinking Water and Sanitation has shown that Jammu and Kashmir have the poorest sanitation facilities compared to the other states.  It is also important to note that the majority of the population still live in rural areas so the health and education infrastructure is not still as developed as it should be (Pandey, 2019). The rural areas lack private schools and the government schools are also in a bad state. Poor school infrastructure is one of the important reasons for the low literacy rate of the state. Several surveys conducted on the schooling facilities of Jammu and Kashmir have shown that due to lack of proper infrastructure, the students are made to sit on the floors, they do not have proper sanitation facilities in those schools etc. The buildings of the schools are in a worn-out state and on top of that, the 2014 floods in Jammu and Kashmir have damaged no less than 1400 schools (Digital, 2019). This leads to higher dropout rates in the state. Another important issue faced is that most of the schools do not have electricity. These infrastructural problems have been identified over the years and even though the government did put in efforts to resolve these issues, the condition of infrastructure in the state has not improved to a large extent.

As more and more tourists turn up each year, the pressure on the mountains is increasing at an alarming rate and poor infrastructure can cause unforeseen disasters if not taken care of immediately.

Why Article 370 Was a Cause of Concern?

According to Article 370 which was drafted by the then Chief Minister of Kashmir, other than a few areas of national concern like defence, foreign affairs, communication and finance, the central government had to take the consent of the state government to apply any laws or policies in Jammu and Kashmir. This article was made to be permanent and henceforth even more stringent. In simpler terms, the people of the state did not fall under the same rules as the rest of the country and lived by the rules of the state, hence given the status of special autonomy (Jaitley, 2016). This also gave the state’s government, the power to decide who could have ownership of land, or who could and could not invest in the land of Kashmir. This led to a huge problem as people who did not belong to Kashmir, could not officially buy land. This in turn meant that there weren’t any major external investments coming to Kashmir. The Modi government has linked Article 370 as one of the major reasons for the state’s infrastructure remaining underdeveloped for an awfully long period of time. In August 2019, Article 370 was finally abolished (TNN, 2019).

All of this has led to a rise in the need for a planned and vast investment boost in infrastructure in Kashmir to look forward to a better and safer future.

Huge Infrastructure Boost on the Way

The central government has aimed to bring a huge infrastructural boost to Jammu and Kashmir. The objective of this investment is to generate employment and investment in the state. Jammu and Kashmir was officially divided into two federally controlled territories on Oct 31, 2019. The region mostly depends on tourism, handicrafts and farming and has suffered poor infrastructure for decades continuously.

Prime Minister Narendra Modi has agreed on an investment boost of $3.8 billion after scraping out article 370. This is done in the view of increasing investments in the territory and generating employment opportunities. 

Let us now look at the investment programs brought through this infrastructural boost:

  1. There has been investment in an elevated Mass rapid transit system in Kashmir. Kashmir will have two Light Rail transit systems (LRTS). The LRTS I is a 17 km long corridor that connects Bantalab to Greater Kailash with 17 stations to be crossed. The LRTS II will be 6 km long that connects Udheywala to Exhibition Ground (Digital, 2019).
  2. There are infrastructure plans are Srinagar which will have two corridors. It is a 12.5-km-long corridor I which will connect HMT Junction to Indra Nagar crossing 12 stations. The second corridor is a 12.5-km-long corridor II that will connect Osmanabad to Hazuri Bagh. In order to further develop Srinagar and Jammu, the Metropolitan Regional Development Authorities (MRDAs) have been set up. Satellite townships with 50,000 new houses each are being developed in Greater Srinagar and Greater Jammu. These new townships will have one million sq ft IT parks (Digital, 2019).
  3.  In view of improving connectivity, there have been investments to develop the Bilaspur-Manali-Leh railway line. The corridor will help improve connectivity with Jammu Kashmir and Himachal Pradesh. This railway line will be the world’s highest railway track and 465kms long. 52 per cent of the total 465 km length will pass through tunnels. The longest tunnel will be 27 km long. The total length of the tunnels is expected to be around 244 km (Digital, 2019).
  4. The construction, operation and maintenance of 2-lane bi-directional Zojila Tunnel with Parallel Escape (Egress) Tunnel were approved during 2018 by the cabinet that excluded approaches on Srinagar-Leh section connecting NH-1A at Km 95.00 in Jammu & Kashmir. The 14 km-long tunnel will be India’s longest road tunnel and Asia’s longest bidirectional tunnel. This tunnel will be a sigh of engineering excellence considering the difficult terrain that it will be built on. The construction of this tunnel will provide all-weather connectivity between Srinagar, Kargil and Leh (Digital, 2019).
  5. The Dal Lake will also be restored. The government has planned investment to improve and beautify the lake further. Srinagar and Kashmir are also set for new pollution free e-buses (Digital, 2019).
Construction of Chenab Bridge in Jammu and Kashmir
Construction of Chenab Bridge in Jammu and Kashmir | Source: @RailMinIndia/Twitter

Possible Impact of the Infrastructure Boost on Kashmir’s Economy

The increase in public as well the private investment is looked forward to bringing a significant amount of income through Kashmir. The government is expecting to attract $5-6 million through these investment programs (ANI, 2020). As the Modi government was for long against the special status given to Kashmir, they now hope that the scraping out of Article 370 along with such a huge boost in the infrastructure will not only lead to a better life for the natives of Kashmir but will also help generate income to a very large extent.

The boost in infrastructure will lead to improvements in the tourism sector to a large extent. The tourism sector is one of the most important sectors of Kashmir. As every year, the number of tourists only rise, the infrastructure must be able to support the rising strengths, along with protecting the mountains and the ecology of the place (Vignesh Radhakrishnan, 2019).

The railway lines and corridors approved for construction will lead to better connectivity among the places which has been a major problem for a very long time. These large constructions were due for a long time and a properly planned and executed infrastructural project can generate employment as well as income for the long term.

The geographically difficult terrain makes it even more important focus on the infrastructure of the place for it being able to operate at its optimum capacity. The natives of Kashmir have been in distress for almost all their lives along with the fear of terrorism at any given time (IBEF, 2020). The beautiful landscape has a lot of potential for generating income and employment for its people. And this huge infrastructural boost will hopefully help in attaining that potential along with maintaining an adequate ecological balance.

Conclusion

The debate on stabilizing the economy of Kashmir has been a highlight for decades now. However, with this infrastructural boost on the way and the projects taken up by the government, there seems to be some light at the end of years of the dark tunnel.

Bibliography

Infrastructure boost for Kashmir! From highest railway line to longest tunnel, check upcoming projects. (2019). Times Now.

Ishfaq-ul-Hassan. (2018, January 23). Jammu and Kashmir: Infrastructure development gets massive boost; funds for new bridges, tunnels, highways earmarked. Retrieved from DNA: https://www.dnaindia.com/india/report-jammu-and-kashmir-infrastructure-development-gets-massive-boost-funds-for-new-bridges-tunnels-highways-earmarked-2577795

Digital, E. N. (2019, June 15). Infrastructure boost for Kashmir! From highest railway line to longest tunnel, check upcoming projects. Retrieved from ETNOWNEWS.COM: https://www.timesnownews.com/business-economy/industry/article/infrastructure-boost-for-kashmir-from-highest-railway-line-to-longest-tunnel-check-upcoming-projects/436943

Jaitley, A. (2016, 26 June). India needs $1.5 trillion for infrastructure development: Arun Jaitley. Retrieved from ZeeNews: https://zeenews.india.com/business/news/economy/india-needs-1-5-trillion-for-infrastructure-development-arun-jaitley_1900273.html

ANI. (2020, August 2). Kashmir gets infrastructure boost in higher education sector. Retrieved from yahoo!news: https://in.news.yahoo.com/kashmir-gets-infrastructure-boost-higher-043022239.html

Vignesh Radhakrishnan, S. S. (2019, August 7 ). Is Jammu and Kashmir underdeveloped as stated by Amit Shah? Retrieved from The Hindu : https://www.thehindu.com/data/where-does-jammu-and-kashmir-stand-in-comparison-to-other-states-in-key-indicators-of-growth-and-development/article28855512.ece

IBEF. (2020, November 17 ). Jammu And Kashmir Presentation And Economic Growth Report | IBEF. Retrieved from India Brand Equity Foundation : https://www.ibef.org/states/jammu-and-kashmir-presentation

Pandey, G. (2019, August 5). Article 370: What happened with Kashmir and why it matters. Retrieved from BBC News : https://www.bbc.com/news/world-asia-india-49234708

TNN. (2019, August 3). What is Article 370? Three Key Points . Retrieved from The Times of India : https://timesofindia.indiatimes.com/india/What-is-Article-370Article-370/articleshow/35678708.cms

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ALEXEI NAVALNY: CRITIC OF KREMLIN http://www.wiserworld.in/alexei-navalny-critic-of-kremlin/?utm_source=rss&utm_medium=rss&utm_campaign=alexei-navalny-critic-of-kremlin http://www.wiserworld.in/alexei-navalny-critic-of-kremlin/#respond Sat, 20 Feb 2021 20:12:03 +0000 http://www.wiserworld.in/?p=4311 On 2nd February 2021, Alexei Navalny was sentenced to a penal colony for two years and eight months by a Moscow court. [1] On 5th February, he was again summoned to court, where he was charged for insulting a war veteran. [2] However, the 2nd February verdict was enough for the

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On 2nd February 2021, Alexei Navalny was sentenced to a penal colony for two years and eight months by a Moscow court. [1] On 5th February, he was again summoned to court, where he was charged for insulting a war veteran. [2]

However, the 2nd February verdict was enough for the Russians to come out in support of him. Thousands of supporters of Alexei Navalny poured onto the streets and marched towards central Moscow. These protestors clashed with police in body armour who was also armed with staves to control the protest. According to OVD-Info, an independent monitoring group state that over 1,000 protestors were arrested across the country the following day. [3]

It is indeed a controversial decision as Navalny is one of the most prominent Kremlin critics and Vladimir Putin’s foe. It is not the first time that some Kremlin critic is being put behind bars. Mikhail Khodorkovsky [4] and chess world champion Garry Kasparov [5] are some of the people who were forced to leave Russia in fear of their lives for criticising Putin. However, Boris Nemtsov was not that lucky as he was shot dead in Kremlin, 2015. [6] It makes Alexei Navalny the last critic of the Kremlin to be standing alive and on Russian soil.

During the court visit, one could not miss noticing Alexei Navalny’s wife, Yulia. The verdict included the deduction by the judge of 10 months from the originally designated three-and-a-half-year sentence as Alexei Navalny had already spent that duration in house arrest. Yulia stepped out after the court session when Navalny smiled and shrugged his shoulders and yelled: “Don’t be sad! Everything is going to be all right”. [7] She waved back with Navalny’s two lawyers, Vladimir Kobzev and Olga Mikhailova. They have approached the European Court of Human Rights but to no avail. [8] However, all of these come as no news as Alexei Navalny is a nobody but one of the rising figures in Russian politics and a massive challenge to President Vladimir Putin.

Who Is Alexei Navalny?

Alexei Navalny is a lawyer turned activist. He is a very prominent critic of President Putin and his administration. However, to several Russians, he is not just a challenger to President Putin but is instead considered a contender to the leadership position. President Putin is a former KGB colonel who intends to continue controlling Kremlin for a few more decades. On the other hand, Navalny is seen as a revolutionary leader. 

Navalny is a rising figure who has been a symbol of protest against President Putin’s grey bureaucratic hold and his colleagues from KGB in the Kremlin. Navalny is seen as an opponent by several Russian elites. He worked as an organiser for the liberal Yabloko faction in 2007. However, he was kicked out of the party in 2007 for participating in a march with radical nationalists in Moscow. [9] 

He came second in the mayor elections of 2013 with 27% votes, although he alleged that it was due to the authorities’ ballot-rigging. Even though Sergei Sobyanin won the election, it cannot be denied that it was the first official challenge given by Navalny to President Putin. [10] As a result, alleged corruption allegations were put on his to debarred from the 2018 elections. Not just him, even his allies are frequently prevented from holding any office. Now, in the Duma elections that will take place in September 2021, he and his allies want to challenge the United Russia party. [11]

At the same time, Kremlin is getting ready to keep him away from one of the other reasons. Earlier as well, he has been jailed because of his connection to protests. He has also been convicted twice for financial misdeeds, although he claimed that they were politically motivated. Not only that, but he has also had significant eye damage due to a disinfectant thrown onto his face. [12]

How Is Alexei Navalny a Challenge to President Vladimir Putin?

Alexei Navalny gained prominence by using social media to reach out to people regarding matters concerning Russian politics. He makes videos on the Russian elites’ various details that they would like to keep in the dark. Navalny has over 2.5 million Twitter followers and about 6 million YouTube followers. He uses these social media platforms to expose the truth about the sources of the Russian elites’ wealth. One such video is that of President Putin’s secret Black Sea palace. [13] The video has garnered over 110 million views. Several other anti-corruption videos are made by him that tend to hit these Russian elites’ personal lives and big-shot names in Kremlin. [14] Thus, Navalny is no new to raids, lawsuits, threats, and jail stint. 

Alexei Navalny is evident in his objectives if he comes to power- to end corruption by state officials. Rampant state corruption has been one of Putin’s governance highlights, and President Putin is right in the centre of it stashing billions of dollars from strategic enterprises. It led Navalny to become a shareholder activist in 2007. He used his financial knowledge to purchase several shares of state-run firms that have a suspicious background. [15]

He has several foundations based out form other countries to expose the corruption taking place in the Russian power centre. Moreover, he is not a one-person army. Several people are ready to fight this menace in Russia. Vladimir Ashurkov and Leonid Volkov is the director of the London based anti-corruption foundation [16] and is an aide of Navalny in Lithuania. [17] 

So, President Putin has the state machinery in his realm as his tool to keep control over his critics. However, Alexei Navalny uses social media and his dark humour as a tool to keep up with other people. Many have come and gone, but Alexei Navalny is still standing. He has done something that no one could do before- get under President Vladimir Putin’s skin. He has been brave and has stood firm even when put in the worst of situations. President Putin so far, been unable to break him.

That is the reason why Kremlin has been trying to eliminate him for a year with different methods. Jail, lawsuits, raids, threats. Nothing has worked so far. So, the Kremlin decided to use the shadiest method under their belt to silence him once and for all. Last year, Navalny was poisoned in Siberia by an undercover team of Russia’s Federal Security Service (FSB) spy. They had applied “Novichok Nerve Agent” in the internal parts of Navalny’s underpants. It had earlier been used in 2018 on Sergei Skripal and his daughter Yulia Skripal in Salisbury. [18] However, Alexei Navalny was able to survive due to timely hospital treatment. Navalny was even able to expose the FSB assassins. [19]

With this attempt, the Kremlin finally thought they had got rid of Navalny. Even though he survived, they assumed that he would not return to Russian soil from Berlin, where he was recovering. Nevertheless, Navalny again proved them wrong when he flew back to Moscow on 17th January. It was seen as a direct challenge to President Putin. It was then he was detained from the passport control at Moscow’s Sheremetyevo airport within hours of his arrival. [20]

Alexei Navalny being treated in Germany after being poisoned
Alexei Navalny being treated in Germany after being poisoned | Source: Navalny/Instagram

His lawyer Olga Mikhailova told the Echo of Moscow radio station that she could not meet her client. In other words, Navalny was denied legal representation. [21] All of this culminated into street protests in over 100 towns and cities in Russia. [22] From Crimea to Vladivostok on the Pacific, the streets were flooded with supporters. Protestors even gathered in- 50C in Yakutsk to show solidarity with their hero. [23]

International Condemnation of Alexei Navalny’s Arrest

Not just Russians, but there has been an international outcry for human rights violation by both USA and European diplomats and leaders in this case. NSA whistleblower Edward Snowden who is now a Russian citizen, Jack Sullivan, Joe Biden’s incoming national security adviser, and even Mike Pompeo are prominent names who voiced their opinion against the state brutality on Alexei Navalny. Not just them, but even US Secretary of State, Anthony Blinken, UK Prime Minister Boris Johnson and German Foreign Minister, Heiko Maas, have described this act as being “deeply concerning”, “cowardice”, and a “bitter blow” to the rule of law in Russia respectively. [24]

In a video conference with French President Emmanuel Macron, German Chancellor Angela Merkel made a statement from Berlin- “We consider this expulsion unjustified and think it is another facet of the things that can be seen in Russia at the moment that are pretty far from the rule of law.” [25]

Showing solidarity with Germany, Poland, and Sweden, Macron stated, “I think this was a huge mistake even for Russian stability today.” Sweden’s Foreign Ministry spokesperson Mats Samuelsson said that “it considers this entirely unjustified, which we have also conveyed to the Russian side”. Stockholm “strongly rejects Russian claims that the diplomat took part in a demonstration in Russia” and “reserves the right to take appropriate response measures,” he said. [26]

Way Ahead

Nonetheless, nothing seems to change the minds of the Russian officials in this case. To make matters worse, Kremlin went ahead with expelling EU diplomats on 5th February. The Russian Foreign Ministry accused diplomats of Sweden and Poland stationed in St. Petersberg and a diplomat of Germany stationed in Moscow of taking part in the protests on 23rd January to show support to Alexei Navalny. all the three diplomats were declared “persona non grata” and were ordered to leave shortly. [27]

These have further worsened the situation and the EU’s possible attempt to re-engage talks with Moscow that EU Foreign Affairs Chief Josep Borrell was spearheading. In retaliation to this, on 9th  February 2021, Germany, Poland and Sweden on Monday each declared a Russian diplomat in their country “persona non grata.” All the Russian ambassadors were told to leave the country immediately. [28]

Whatever is happening or will happen, one thing is for sure Alexei Navalny did not lose anything from his prison sentencing. Locking up Navalny for a long time is bound to make him a martyr.

In 2013, when he was arrested, a large crowd had gathered that forced the authorities to leave him. Since then, President Putin is stringent on dissent moves like this. Nevertheless, keeping him long now will surely increase the protest and may lead to political instability. If he is released now, he will be a massive challenge in the Duma elections scheduled in September 2021. Either way, it seems like Alexei Navalny’s win and a loss to the “Vladimir, the Underpants Poisoner.” [29]

REFERENCES

[1] The Moscow Times. “As It Happened: Navalny Sentenced to 2 Years and 8 Months in Penal Colony.” The Moscow Times, The Moscow Times, 3 Feb. 2021, www.themoscowtimes.com/2021/02/02/as-it-happened-navalny-sentenced-to-2-years-and-8-months-in-penal-colony-a72803.

[2] Times, The Moscow. “Russia to Try Navalny on WWII Veteran Slander Charges.” The Moscow Times, The Moscow Times, 5 Feb. 2021, www.themoscowtimes.com/2021/02/05/russia-to-try-navalny-on-wwii-veteran-slander-charges-a72841.

[3] Roth, Andrew. “Alexei Navalny: 1,000 Arrested after Protests over Jailing of Russian Opposition Leader.” The Guardian, Guardian News and Media, 3 Feb. 2021, www.theguardian.com/world/2021/feb/02/russian-opposition-leader-alexei-navalny-jailed.

[4] “Mikhail Khodorkovsky Freed after Pardon from Vladimir Putin.” The Guardian, Guardian News and Media, 20 Dec. 2013, www.theguardian.com/world/2013/dec/20/mikhail-khodorkovsky-freed-putin-pardon-russia

[5] Williams, Stuart. “Garry Kasparov Quits Russia.” Mint, 6 June 2013, www.livemint.com/Politics/7iTyaOSRom9xGeF2OmaYUI/Former-chess-champion-Garry-Kasparov-quits-Russia-over-fears.html.

[6] “Who Killed Boris Nemtsov? We Will Never Know.” The Guardian, Guardian News and Media, 3 Mar. 2015, www.theguardian.com/world/2015/mar/02/boris-nemtsov-never-know-who-killed-moscow-vladimir-putin-russian-opposition.

[7] Feehan , Katie. “Russian Police Raid Navalny’s Offices after Wife of Putin’s Greatest Critic Flees Moscow for Germany.” Daily Mail Online, Associated Newspapers, 12 Feb. 2021, www.dailymail.co.uk/news/article-9252195/Russian-police-raid-Navalnys-offices-wife-Putins-greatest-critic-flees-Moscow-Germany.html.

[8] Staff, Reuters. “Russia Dismisses European Court of Human Rights’ Call to Free Navalny.” Reuters, Thomson Reuters, 17 Feb. 2021, www.reuters.com/article/us-russia-politics-navalny-court-release-idUSKBN2AH1XI.

[9] Coalson, Robert. “Is Aleksei Navalny a Liberal or a Nationalist?” The Atlantic, Atlantic Media Company, 29 July 2013, www.theatlantic.com/international/archive/2013/07/is-aleksei-navalny-a-liberal-or-a-nationalist/278186/.

[10] “Alexei Navalny and the 2013 Moscow Mayoral Election | Princeton University Library.” Princeton University, The Trustees of Princeton University, 27 Jan. 2021, library.princeton.edu/news/general/2021-01-27/alexei-navalny-and-2013-moscow-mayoral-election.

[11] “Russian Presidential Election: Alexei Navalny Barred from Competing.” BBC News, BBC, 25 Dec. 2017, www.bbc.com/news/world-europe-42479909.

[12] Kramer, Andrew E. “Kremlin Critic Aleksei Navalny Says Attack Left Him Mostly Blind in an Eye.” The New York Times, The New York Times, 2 May 2017, www.nytimes.com/2017/05/02/world/europe/russia-aleksei-navalny-opposition.html.

[13] Putin’s Palace. History of World’s Largest Bribe. 19 Jan. 2021, www.youtube.com/watch?v=ipAnwilMncI.

[14] Don’t Call Him “Dimon”. 2 Mar. 2017, www.youtube.com/watch?v=qrwlk7_GF9g.

[15] Schreck , Carl Schreck. “Russia’s Erin Brockovich: Taking On Corporate Greed.” Time, Time Inc., 9 Mar. 2010, content.time.com/time/world/article/0,8599,1970475,00.html.

[16] AFP . “Alexei Navalny: Russian Opposition Leader Navalny Aides Push EU for New Russia Sanctions: World News – Times of India.” The Times of India, TOI, 9 Feb. 2021, timesofindia.indiatimes.com/world/europe/navalny-aides-push-eu-for-new-russia-sanctions/articleshow/80767361.cms.

[17] Welle, Deutsche. “Navalny Ally Leonid Volkov: ‘Our Aim Is to Outsmart Putin’: DW: 15.02.2021.” DW.COM, www.dw.com/en/navalny-ally-leonid-volkov-our-aim-is-to-outsmart-putin/a-56573967.

[18] Harding, Luke. “’A Chain of Stupidity’: the Skripal Case and the Decline of Russia’s Spy Agencies.” The Guardian, Guardian News and Media, 23 June 2020, www.theguardian.com/world/2020/jun/23/skripal-salisbury-poisoning-decline-of-russia-spy-agencies-gru.

[19] “’Do You Remember the Underwear’s Colour?’ – Navalny’s Call with Duped Spy.” The Guardian, Guardian News and Media, 21 Dec. 2020, www.theguardian.com/world/2020/dec/21/what-does-alexei-navalny-say-the-duped-russian-spy-admitted-about-his-poisoning.

[20] “Alexei Navalny Detained at Airport on Return to Russia.” The Guardian, Guardian News and Media, 17 Jan. 2021, www.theguardian.com/world/2021/jan/17/alexei-navalny-detained-at-airport-on-return-to-russia.

[21] AFP. “Alexei Navalny Lawyer Says Denied Access to Moscow Police Cell.” Hindustan Times, 18 Jan. 2021, www.hindustantimes.com/world-news/alexei-navalny-lawyer-says-denied-access-to-moscow-police-cell-101610962827751.html.

[22] Desk, Sentinel Digital. “The Russian Affair – Sentinelassam.” The Sentinel Assam, The Sentinel Assam, 17 Feb. 2021, www.sentinelassam.com/editorial/the-russian-affair-524975

[23] Troianovski, Anton, and Andrew Higgins. “Pro-Navalny Protests Sweep Russia in Challenge to Putin.” The New York Times, The New York Times, 23 Jan. 2021, www.nytimes.com/2021/01/23/world/europe/russia-protests-navalny.html.

[24] Times, The Moscow. “World Reacts to Navalny’s Arrest.” The Moscow Times, The Moscow Times, 20 Feb. 2021, www.themoscowtimes.com/2021/01/18/free-navalny-western-leaders-tell-russia-a72637.

[25] Ap. “Relations between EU and Russia Worsen over Navalny Jailing.” The Economic Times, Economic Times, 6 Feb. 2021, economictimes.indiatimes.com/news/international/world-news/relations-between-eu-and-russia-worsen-over-navalny-jailing/articleshow/80717773.cms.

[26] Staff, Reuters. “Russian Court Made ‘Huge Mistake’ in Jailing Navalny -Macron.” Reuters, Thomson Reuters, 4 Feb. 2021, www.reuters.com/article/us-france-macron-russia-idUSKBN2A42NJ.

[27] PTI. “Relations between EU and Russia Worsen over Navalny Jailing.” The Week, The Week, 14 Dec. 2020, www.theweek.in/wire-updates/international/2021/02/06/fgn49-eu-russia-ld-navalny.html.

[28] Jordans, Frank. “EU Countries Expel Russian Diplomats in Navalny Dispute.” AP NEWS, Associated Press, 8 Feb. 2021, apnews.com/article/eu-countries-expel-russia-diplomats-69e018425fa2d0bc9dde29aa1fad8c60.

[29] Rfe/rl. “’Vladimir The Underpants Poisoner’: Navalny Mocks Putin In Court.” RadioFreeEurope/RadioLiberty, ‘Vladimir The Underpants Poisoner’: Navalny Mocks Putin In Court, 2 Feb. 2021, www.rferl.org/a/russia-navalny-speech/31082857.html.

Featured Image by – Elena Ignatyeva, AFP

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Precious Metals and Impact on World Economy http://www.wiserworld.in/precious-metals-and-impact-on-world-economy/?utm_source=rss&utm_medium=rss&utm_campaign=precious-metals-and-impact-on-world-economy http://www.wiserworld.in/precious-metals-and-impact-on-world-economy/#respond Sun, 14 Feb 2021 09:33:55 +0000 http://www.wiserworld.in/?p=4303 Precious metals are rare which makes them valuable. These metals are very important in our modern lives for their essential properties like high conductivity, high melting point and physical and chemical resistance, catalytic ability, chemical reaction. Precious metals are used in a wide range of applications in low concentrations and often

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Precious metals are rare which makes them valuable. These metals are very important in our modern lives for their essential properties like high conductivity, high melting point and physical and chemical resistance, catalytic ability, chemical reaction. Precious metals are used in a wide range of applications in low concentrations and often in a substance mix such as alloys or in compounds like oxides. The most well-known precious metals, gold and silver, have been used since ancient times. Rare metals include platinum (Pt), Palladium (Pd), Osmium (Os), Rhodium (Rh), Ruthenium (Ru), and Iridium (Ir). Today 85-90% gold, 60% silver is used in jewellery and 29% platinum is used in jewellery but they have many other uses, which may surprise us.

About 10 to 15% of gold is used in various applications that use its special properties. Its corrosion-resistant, static-free electrical conductivity process is used in small amounts in about 1.5 billion smartphones sold till date. It is also used in other electronic devices where efficient, high performance is required such as mounting microprocessors and memory chips onto the computer motherboards. Navigation in car and mobile phone depend on the Global Positioning System (GPS) satellites which have gold-plated component to protect them from ultraviolet light and X-ray corrosion.

Silver has the lowest contact resistance and the highest electrical and thermal conductivity of all metals which makes it essential in components of Green Technologies. Silver is needed for solar panels, fast charging, in-road applications and certain types of electrodes. It is used in circuit boards and some batteries where the speed of operation exceeds that which provides copper.

Today 40% platinum, 80% palladium and 80% rhodium are used as catalyst converters for car-bus-truck and other industrial processes. Due to platinum’s high heat resistance, its melting point is 1770°C and wear-resistant properties, it is used for contact points of spark plugs which last twice as long as conventional copper spark plugs. In health care, platinum is used in pacemakers and defibrillators. Platinum compounds are used in chemotherapy to prevent cancer.

Precious metals, their composite products and the products obtained as a result of their use really make our lives more enjoyable, safer, more productive and healthier. They enable us to have a cleaner environment today and their importance is increasing as Europe moves the world towards a low-carbon economy.

Countries With Largest Gold and Silver Reserves

In 2010, central banks around the world went from gold net sellers to gold net buyers. In 2019, public sector activity declined by 1% from the previous year, with central banks adding 650.3 tons. This is slightly less than in 2018, when banks purchased 656.2 tons. 15 Central banks made net purchases of one ton or more in 2019, highlighting the continuous demand for billion globally. Turkey was the number one buyer, adding 159 tons to reserves. Poland made the single largest purchase for the year when it bought 94.9 tons in June.

World economy in one chart
World economy in one chart

Below are top 10 countries with the largest gold holdings, starting with the Netherlands, which currently surpasses India:

Netherlands

Tons: 612.5

Percent of foreign reserves 71.4%

India

Tons: 657.7

Percent of foreign reserves: 7.5%

Not surprisingly, the Reserve Bank of India has one of the largest gold reserves in the world. The South Asian country of 1.35 billion people is the second largest consumer of the precious metals and one of the reliable drivers of global demand.

Japan

Tones: 765.2

Percent of foreign reserves: 3.2%

Japan is the third largest economy in the world and yellow is the eighth largest stockholder.

Switzerland

Tons: 1,040.0

Percent of foreign reserves: 6.5%

Seventh is Switzerland, which has the world’s largest gold reserves per capita. During World War II, the neutral country became the center of the gold trade in Europe, trading with allies and Axis powers. Today, most of its gold is traded with Hong Kong and China.

China

Tons: 1,948.3

Percent foreign reserves: 3.4%

In the summer of 2015, the People’s Bank of China began buying gold on a monthly basis for the first time since 2009.

Russia

Tons: 2,299.9

Percent of foreign reserves: 23.0%

The Russian Central Bank has been the largest buyer of gold for the past seven years and the fifth largest reserve in 2018, surpassing China. In 2014, Russia bought 224 tons of bullion in an attempt to diversify from the US dollar, as relations with the west have increased since the annexation of the Crimean peninsula in mid-2014.

Silver has been classified as a technically precious metal, but has many industrial uses. And it is used in a variety of technologies and products that most people in the developed world use on a daily basis. In 2019, silver production rose to 27,000 worldwide.

United States

The United States is the tenth largest producer of silver. In 2019 it produced 980 metric tons of metal from three silver mines and nearly 40 other base and precious metal mining operations around the country.

Argentina

With the production of 1200 metric tons of silver in 2019, Argentina established a relationship with Bolivia for the ninth place in the list. Last year its production increased to 17.6 per cent.

South America

South America is ninth on the list, along with Bolivia, a country bordering Argentina. It produced 1,200 metric tons of silver in 2019, slightly more than the 1,19 metric tons produced in 2018. The country has many silver mines especially the Cerro Rico de Potosi which is estimated to still have large deposits of silver inside.

Chile

Chile produced 1300 metric tons in 2019, which was 1370 metric tons in 2018. The size of Chile is comparable to Texas and has an estimated 27,000 metric tons of silver reserves.

Australia

Australia is a country that has a relatively stable silver production level. The country produced 1400 metric tons in 2019, although it has the third largest silver reserves after Peru and Poland.

Poland

Poland produced 1700 metric tons of silver in 2019, up about 15% from 2018. Poland holds a unique place in the silver markets: despite being a small country the size of New Mexico, it has large silver reserves of 100,000 metric tons.

Mexico

The number one silver producing country is the Mexico. In 2019, the country produced 6,300 metric tons of the metal, an increase of 180 metric tons over the past year.

Role of Precious Metal in World Economy

Metal production and metal consumption are concentrated in a few countries but locations often overlap. China is a primary center for both consumption and production, which is reflected in global industrial production. Several individual entities, including several multinational and state-owned corporations, control large market shares to produce and refine the base metal. The issue of production is not just a complete story of the importance of gold; the gold mine represents an important source of employment.

South Africa has the largest employment at 146k, followed by Russia at 138K, China at about 98K, Australia at 32K and Indonesia at 19K.

Canada spent the most capital on gold production at about $2.5 billion, followed by the United States at about $2.5 billion, Australia at about $2.3 billion, South Africa at about $1.8 billion, and Russia at a little less than $1.8 billion.

The relationship between ongoing investment capital commitment and one-time expansionary investment capital is not so strong. For example, Canada saw businesses spend $2.2 billion on one-time expansion projects, compared to $395 million in ongoing capital expenditures. South African businesses have spent $1 billion on capital needs, while investing $759 million in one-time capital expenditures alone.

The importance of gold is fully usable and is reflected in the export industries. Overall jewelry contributes about 43 percent of the total global demand. This is followed by bars and currency demand at 29%, official banking sector at 12%, electronics at 7%, exchange traded funds and similar investment vehicles at 6%, industrial demand at 2%.

After a spectacular year, the precious metals are poised for further gains in 2021, overtaking silver, but analysts are wary of the potential for gold as the effects of the coronavirus fall on the global economy. In addition to supply shortages caused by the pandemic, gold and palladium prices have risen more than 20% this year, while silver has risen 47% and platinum 10%.

Physical gold demand was hit by the virus but reflects the investment demand of the world’s largest gold-backed exchange-trade fund, SPDR Gold Trust, which has recorded its largest annual profit of about 30% since 2009. A safe-haven asset like gold, but also an industrial metal used in products including solar panels, silver climbed from $18 an ounce in January to almost $30 in August before slipping to around $25. Most analysts expect the deficit to continue in 2021 as the global economy recovers and sales rebound.

People look for precious metals, especially in times of crisis. Many people bought both gold and silver in the 1970s due to high inflation. In fact, silver reacted twice as much as gold to those events. It has become a source of protection.

Silver may play second fiddle to gold, more expensive cousin. White metal has played a leading role in shaping the world economy from ancient Egypt to modern America. It was also an element of the military conflict that helped turn Japan into a global power before World War II. Both India and China have a long tradition of preserving silver. Gold is very rare and very expensive so almost everyone in India and China preserves their silver. China has been a huge importer of silver for many centuries, because they kept their net worth silver.

Silver set to shine in 2021 than other precious metals
Silver set to shine in 2021 than other precious metals

The most amazing thing about silver is the unintended consequences of Franklin Delano Roosevelt’s pro silver 1930s. This is because the price of silver has dropped by 24 cents an ounce since the Great Depression. There has been a lot of pressure from Western mining states to raise silver prices again. And Franklin Roosevelt needed a Senate vote to pass his controversial New Deal program.

The problem is America was making its coins with silver. Dimes, quarters and half dollars were made with 90% silver. The United States is the largest user of silver. Soon both JFK and LBJ limited restricted the use of silver in currencies.

Silver was four times more valuable between 2008 and 2011 when the whole world was in big trouble. Silver then worked as an insurer.

Impact of Precious Metals on Indian Economy

In the recent past the gold price rush has been so fast that India can be compared to the recession in Greece. However, Indians’ lust for gold is no secret, but it has reached a point where the country’s economy and its currency are being traded as the precious metal has fallen directly for three years. The exchange of billions of dollars of gold from foreign traders resulted in Indian cash being sent abroad and the balance of funds being disrupted. As a result, imports have become expensive and international loans have become difficult to repay.

Gold imports directly affect India’s Current Account Deficit (CAD). The larger the CAD in terms of GDP, the greater the risk to the economy as a whole. The country is currently the world’s largest importer of gold, accounting for one-third of the total supply annually. Ex-finance Minister P.Chidambaram also appealed to Indian consumers to resist the temptation to buy gold, as it would have a more positive impact on the nation’s economy. According to the Reserve Bank of India, the current gold cost is fully met through imports as domestic production of gold has come down to a very low level. Although it is considered that CAD is more sustainable for India at 2.5 per cent to 3 per cent, it is much higher than in 2011, and external resilience has been weakened by gold.

The potentially large but dormant source is the gold locked up with the temples across India. The Tirupati Temple in Andhra Pradesh, Sree Padmanabhasway Temple, Guruvayur Temple and Sabarimala Temple in Kerala Pradesh are believed to have large amounts of gold. Sri Padmanabhasway Temple has a gold holding of thousands of billions of dollars.

Action Taken by Government and RBI regarding Precious Metals

With less national gold coming to India through the banking system, the government has tried to consider raising import duties and changing the rules to address the problem. However, the recent fall in gold prices has provided the most effective solution. In August 2013, the finance minister banned countries from selling gold coins to keep the increased current account deficits. Gold imports fell sharply in 2013 to $650 million, according to the government’s domestic shipments of precious metals.

RBI has introduced 80:20 formulas under which 80% of imports will be for domestic demand, while 20% of total imports will have to be re-exported in the form of jewellery.

Conclusion

The financial crisis in late 2008 rocked global markets. The tendency to increase the temptation to allocate to regular investors began. Gold is a frontier against all kinds of uncertainties. Gold comes to recover from the prevailing global and financial uncertainties. But the government needs to crack down on rising gold prices and help investors offset losses due to uncertainties in other markets. Gold is seen as one of the best options for protecting and saving the 1.24 billion people living in India. The rise in imports over the last few years has led to a rise in the price of gold and a weakening of the rupee against the dollar. The combined effect has helped to widen the current account deficit.

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