Tuesday, February 3, 2009

Right to Information Act

All public functionaries agree that transparency is the key to effective governance and they are all for it. Such bravado, however, goes out of the window when the guns are actually trained on them. Transparency within the judiciary serves at least two important purposes—it decreases the opportunities for corrupt practices and promotes public confidence in the institution. Given these vital roles, it is surprising that there should be stiff judicial resistance to making public whether members of the higher judiciary are submitting declarations about their financial assets as they are expected to. Such declarations after all were supposed to be made to the Chief Justice of India and the Chief Justices of the respective High Courts in accordance with a 1997 resolution adopted at an all-India Judges Conference. Against this background, it is inexplicable that the Supreme Court should block the Central Information Commission’s (CIC) order asking it to provide this information to an applicant under the Right to Information Act (RTI).
The Court’s decision to challenge the order in the Delhi High Court—High Courts are the final court of appeal under the RTI Act—is both unprecedented and, under the circumstances, quite unnecessary. It would have been far more sagacious had the Court simply made the information—which the CIC rightly described as “innocuous” –available.
Transparent System
Ever since RTI came into effect, it has forced the Indian State, notorious for its stonewalling ways, to open up. In a recent order, the CIC, which oversees RTI, has declared all political parties should disclose their IT returns. The reason given by the CIC is that information on the funding of parties is a democratic imperative and is in public interest.
In the US, for instance, the Federal Election Commission, an independent regulatory body keeps records of campaign finance and enforces laws on the limits and prohibitions on contributions. Anyone can log on to their website and access the latest campaign, finance information on presidential candidates or on those running for other offices. One can also find out the names of individual or corporate fund givers, how much they have donated and to whom. Though this by no means foolproof—slush funds do find their way to election candidates—it is a remarkably transparent system.
Larger Issues
Transparency and accountability in the judiciary, however, are larger issues that go well beyond the question of the applicability of the RTI Act. Since the Chief Justice of India K G Balakrishnan assumed office, he has earned a well-deserved reputation of being responsive to public and professional concerns. He needs to ensure that not just the answer to the question whether all the judges have declared their assets but also the details of the assets themselves are placed in the public domain.
Despite clear pronouncements from the highest bodies, there seems to be almost no movement in the direction of financial transparency by the political establishment. This is what prompted this effort by the civil society which seems to have run foul of the Court.
Governance of the country cannot improve unless systemic reforms are carried out in the political system. The political establishment is not going to do these it is used to the existing system.
However, when it comes to being opaque, the executive and the judiciary are mirror images. Therefore, it is imperative that civil society utilises progressive laws like the RTI more to demand what is our right to know.

Monday, February 2, 2009

Global Unemployment Trends 2009 Report

The global economic crisis is expected to lead a dramatic increase in the number of people joining the ranks of the unemployed and working poor and those in vulnerable employment, states the Global Unemployment Trends 2009 Report, released recently by the International Labour Organisation (ILO). The report states that global unemployment in 2009 could increase over 2007 by a range of 18 million to 30 million workers, and more than 50 million with the situation likely to deteriorate.
Realistic Message
Based on new development in the labour market, the report states that some 200 million workers, mostly in developing economies, could be pushed into extreme poverty if the situation worsened. In fact, the ILO message is realistic, not alarmist. People are facing a global jobs crisis. Many Governments are aware and acting, but more decisive and coordinated international action is needed to avert a global social recession.
The 2009 report states that based on November 2008 International Monetary Fund (IMF) forecasts, the global unemployment rate would rise to 6.1 per cent in 2009 compared to 5.7 per cent in 2007, resulting in an increase of the number of unemployed by 18 million people in 2009 in comparison with 2007.
If the economic outlook deteriorates beyond what was envisaged in November 2008, “which is unlikely”, the global unemployment rate could rise to 6.5 per cent, corresponding to an increase of global number of unemployed by 30 million people in comparison with 2007, the report states. These are truly dismal tidings as the ILO recognizes that the unprecedented economic stimulus packages announced by various Governments to boost growth will take time to have an effect. The crisis will only worsen before it gets better.
Absence of an evolved social security system could make South Asian countries, including India, feel the pinch further, although the unemployment rate (5.4 per cent) is expected to be much lower than those in Europe and America, according to the report. In South Asia, East Asia and sub-Saharan Africa, the majority of workers do not enjoy the possible security that wage and salary jobs could provide.
Negative Growth
However, the epicenter of global joblessness is the developed economies that are widely expected to experience negative growth in 2009. But this spectre haunts the developing world as well. The severe downturn is expected to result in a sharp rise in working poverty and vulnerable employment. The latter includes contributing family workers or own-account workers who are less likely to benefit from safety nets that guard against loss of incomes during economic hardship.
As per the ILO’s worst case scenario, the number of working poor—people who are unable to earn sufficient enough to lift themselves and their families above the $2 per person, per day—may rise to 1.4 billion, or 45 per cent of all the world’s employed. The proportion of people in vulnerable employment could reach a level of 53 per cent of the employed population.

Sunday, February 1, 2009

FAO Report on Global Food Crisis

The United Nations’ Food and Agriculture Organisation (FAO) in its report, released recently, states that global food production, already under strain from the credit crunch, must double by 2050. The food crisis pushed another 40 million people into hunger in 2008. That brought the global number of undernourished people to 973 million in 2008, out of a total population of around 6.5 billion.
The report states that the world face the challenge now of not only ensuring food for the 973 million who are currently hungry, but also ensuring there is food for nine billion people in 2050. The world needs to double global food production by 2050.
The report warned the global economic crisis was already undermining efforts to tackle food insecurity as it was making it harder for farmers to get loans to buy materials and new equipment that would boost yields. The current economic situation does not make the task easier. The fall in prices for certain food staples from 2008’s highs could also discourage farmers from sowing crops, adding to the difficulty in meeting FAO’s goal to halve the number of people who live in hunger by 2015.
According to report, a combination of factors, including poor harvests, changing diets in emerging economics and a drive for biofuels, have come together to push food prices up, leading to protests in around 30 countries in 2008. It warned the world would only be able to produce enough food for everyone in 2050 if food security was made a top priority.

The Major Factors
There are multiple factors contributing to this global food crisis. First, the rate of population growth has outstripped the rate of growth in food production in some developing regions, especially in sub-Saharan Africa and South Asia.
Second, less rice is being planted in some countries as land becomes exhausted or otherwise unsuitable for cultivation or is converted to other uses such as subdivisions, malls and resorts.
Third, water shortage poses a problem as rice yields depend critically on water. A study by the International Water Management Institute (IWMI) suggests that by 2020 one-third of Asia’s population could face a water shortage.
Fourth, droughts, pest infestation, the spread of plant, diseases and other creeping disasters drastically reduce rice production.
Fifth, rising consumption in emerging nations has created increased demand on the global cereal supply.
The expanding biofuels industry has caused the conversion of rice lands to corn and other crops that are sources of biofuels.
Seventh, the growth of the middle class in China and India has increased the demand for meat which requires the consumption of more feedstock.
Worldwide there is increasing demand. There turns out to be prosperity in developing world. It also however, increses demand. There are 350 million people in India who are classified as middle class. That is bigger than American’s entire population. And when you start getting wealth, you start demanding better nutrition and better food, and so demand is high, and that causes the prices to go up.
The other factors include:
* More than 90 per cent of rice is consumed in the countries where it is grown.
* In the last quarter-century, rice consumption has out-paced production.
* Global reserves have plunged by half since just 2000.
* A plant disease is hurting harvests in Vietnam.
* Economic uncertainty has led producers to hoard rice.
* Speculators and investors see it as a lucrative or at least safe bet.
UN Stand
However, the UN has confirmed what was widely suspected—the US and European Union policy to divert food crops for biofuel production is contributing to rising global food crisis. The UN agencies and the World Bank have decided to set up a task force to tackle an unprecedented rise in global food price that is threatening to spread social unrest. Headed by Ban Ki-Moon, the task force, bringing together the heads of the UN agencies, funds and programmes, the International Monetary Fund (IMF) and the World Bank, will set priorities for a plan of action and make sure it is carried out.
Food security is more than a transient concern. A multilateral framework is necessary and so is a coordinated response within the UN family. Mere empathy will remain grossly inadequate.