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The Edit PageTHEECONOMICTIMES

SBI chairman Pratip Chaudhuri cannot be faulted when he

says the bank will not fund road projects till the developer

completes land acquisition. Indias largest bank can ill-afford

massive write-downs and has to be careful about the viability

of projects and the quality of borrowers. Moodys recently

downgraded SBIs unsecured debt rating, to bring it on par

with the sovereigns, citing concerns over capitalisation of

the bank, stress in the banks books an d slowdown in the econ-

omy. True, the revised rating is unlikely to push up SBIs cost

of overseas bond offerings. It is also in a position to raise capi-

tal from the market and the government. However, banking is

aleveraged business, and banks cannot block capital in unvia-

ble projects. So, they must shed the bur-

den of bad assets. Many projects turn un-

viable because government departments

dither on clearances. These departments

should be made accountable for holding

up projects that lead to a rise in loan de-faults, not officers of PSU banks.

Take the power sector, for example. In-

dia has latent demand for power and there is no reason why a

efficiently-built power project cannot be viable, except for the

lack of availability of coal. To enhance coal supplies, it is plain

that the government must open up and reform coal mining

without any policy pussyfooting. Breaking up the monopoly

of state-owned Coal India (CIL) brooks no delay. Pending that,

CIL should be asked to engage mining contractors with the ca-

pacity and freedom to expand product ion significantly.

Unfortunately, the threat of regulatory action has prompted

bankers to say that they would be forced to insert impossible

conditions in loan covenants that will make it difficult for bor-

rowers to avail of loans. That would choke business and hurt

growth. The government should see the writing on the wall.

Fix the Problem,Not the Banker

Blinkers Off Salam

Frank ZappaAmerican rock

musician

1.6 billion women live in economies with job curbs

Percentage of economies per region with job restrictions

More women work when legal curbs are removed

66%is the femalelabour forceparticipation ratein economieswithout job curbs

79%countrieshave lawsthat restrictjobs womencan do

53%is the femalelabour forceparticipation ratein economieswith restrictions

East Europe & C Asia

LatAm & Caribbean

East Asia & Pacific

Sub-Saharan Africa

South Asia

MENA

OECD 27%

54%

54%

57%

61%

80%

93%

In the last 50 years, womens legal status has improved all over the world.But many laws still make it difficult for them to fully participate in economiclife, be it jobs or starting businesses, according to a World Bank report.

Women Battle Job Curbs

Theres politics, backstabbing

and plotting in every office

were looking for someone

who will do the actual work

Art is makingsomethingout ofnothing andselling it.

16THE ECONOMIC TIMES | MUMBAI | THURSDAY | 26 SEPTEMBER 2013

A Cup of Cappuccino,and the Billi PleaseThere are many views on what makes a perfect cuppa

whether it is tea or cof fee and researchers have even aver-

red recently that beverage preferences also indicate the na-

ture of the quaffers. However, the decision of a caf in Paris

to take a cue from the Japanese and offer purrfect brews

courtesy the addition of free feline add-ons shows that the

concept has finally moved westwards after various avatars

in south-east Asia. The Japanese, of course, also invented

electronic pets to get round the difficulty of keeping dogs or

cats in cramped homes whose owners had long working

hours. But for true animal lovers, there is nothing like a fur-

ry, purring, lap-warmer to accompany a relaxing cup of cof-

fee. So, in-house, on-the-house cats are a logical solution.

Besides providing abandoned animals a home and people

who can pet them, the initiative could serve a larger social

purpose if the cats can also wean caf habitus away fromtheir usual objects of affection, mobile phones, for even a

little while. If the idea takes off in France and elsewhere

London is slated to get one soon the owners could consider

branches with other pets as cats are not everyones cup of

tea or coffee. Dogs, rabbits and parakeets could be possible

extensions. Any Dilli Billi, Mumbai Manjar and Chennai

Punai cafs may have to wait awhile, though.

Anew trend is to offer caffeineaddicts furry solace at cafs

An Exit andaLoopholeOne can be for or against theOrdinance cleared by the Cab-inet. But no one can be for cri-minality in politics. The apexcourts ruling on summarydisqualification of an MP orMLA on conviction overlooksthe importance of the comple-tion of the judicial process.The accused cannot be madeto bear the burden of an in-ordinate delay in disposal ofcases in appeal courts. As forthe politics of it, the BJP back-tracked on the Bill as its pas-sage might help Lalu PrasadYadav. It is a sur prise that Laluis still powerful enough to in-fluence the UPA.

G DAVID MILTON

Maruthancode

The Card wasLost in TransitThis refers to The Court Getsit Wrong on Aadhaar (ET, Sep25). Passport a nd PAN weredesigned as single-purposeidentity vehicles, and yet, thesheer number and geograph-ical spread for securing suchpan-national identity entaileddecades to streamline deliv-ery. The Aadhaa r, on the otherhand, was conceived for a mul-

tiplicity ofend-purposes,most of whichwere yet to beidentified,even as it was

prematurelyloaded to cat-er to refund

commodity/utility prices.Such overloading will contin-ue unless the Aadhaar stage-Igoal and timeframe are fixed.UID is a good concept butwithout excellence in design,administrative support andmonitoring, it goes nowhere.

R NARAYANAN

Ghaziabad

Not Barmy, butArmy isnt allWhy Army Rule Fails (ET,Sep 25) was critical of thearmy, though obliquely. Thedefence forces have somehowcome to believe they are a cutabove the citizenry; and thatthe nation owes them a debtwhich can never be repaid.

There is much to admireabout their discipline, but ifone is to believe the many ex-defence personnel seen moreoften than necessary on TVchannels, then only the armyknows how to run the country!

ANTHONY HENRIQUES

By email

Letters

The right way to go about decriminalising politics is to

speed up the entire justice system so that no case fails to

get resolved beyond final appeal within 18 months or so,

and pending that reform, to fast-track cases against

those who enter public life so that cases against them aredisposed of beyond final appeal within the same period.

Given the quality of work by the lower judiciary in sev-

eral instances, this would be both fair and necessary to

would-be lawmakers. On the face of it, the Supreme Cou-

rt judgment banning a convicted person from contesting

elections even if he has filed an appeal might seem a solid

blow against criminalisation of politics. Equally, the

proposed Ordinance to negate the Supreme Court ruling

could be seen as an attempt by the political class to pro-

tect its own and specifically as an attempt by the Cong-

ress to keep RJD chief Lalu Yadav safe, given that the

judgment relating to the 1996 fodder scam is looming.

These assumptions are only partially true. It is the

interminable judicial process that

allows people with influence to es-

cape being sentenced. And, given the

Supreme Court ruling, nip budding

challenges to their authority in the

bud. Now, the reform of our messy ju-

dicial system is a big task, though it isnot unachievable. And if the rot of the

criminalisation of politics is to be seen as an issue that

merits special treatment, then why not introduce fast-

track trials and speedy convictions (or acquittals) of peo-

ple in public life, including politicians?

The governments Ordinance does not envisage that

logical way out, even though it seeks protection for elect-

ed, convicted representatives only if an appeal is taken

up by higher courts within 90 days and a stay is granted

on the conviction and sentence passed. This is based on

the Representation of the People Act, which allows a re-

prieve to elected members if they file an appeal against a

conviction. That special treatment could also be extend-

ed to being subject to a faster judicial process, while it

must be clear that the wider task of decriminalising poli-

tics also depends on reforming the justice system as well.

Fast-Track CasesAgainst LawmakersAutomatic disqualificationnot the solution

MUKUL SHARMA

As opposed to showpiece struc-tural designs by grand globe-straddling starchitects, Pritz-ker Prize winner Peter Zum-thors work has been hailed asareturn to the humanistic,spiritual side of contemporaryarchitecture. In a recent inter-view, Zumthor described thequalities he ultimately looksfor in the spaces that he createsas beautiful silence that I as-sociate with attributes such ascomposure, self-evidence, du-rability, presence and integri-ty, along with a sense ofwarmth as well.

The Swiss architect is notparticularly religious, whichis perhaps why his words, likehis works, possess the ambien-ce of prayer mats in a meditati-on hall rather than the dazzle

of stainedglass in a ca-thedral. AstheNew YorkTimes Maga-zinesays,Zumthorsbuildings

work from theinside out, investing as muchin feeling as in looking. Acc-ording to Zumthor, hes look-ing for a harmony with well-being and a union with reality.

Similarly, in that sense, his ar-chitecture resembles the yogaexperience. For, it too is notparticularly religious but is asystem of discipline and con-trol that while working fromthe inside out has as its goalthe achievement of an alteredstate of consciousness wheretheres union with true reality.

Also, like show-offy architec-ture, there are the more sensa-tional physical by-products ofyoga practice too ranging fromthe ability to eat lethal substa-nces to being buried alive forlong periods of time. All suchactivities pursued for theirown ends are not only barriersto the building of a true yogicspirituality but can also lead to

physical or mental disaster.

The BuildingSpirit

Spiritual Atheist

Idisagree with the food security andland Bills, but admire the political co-urage to ram them through. Polls can

galvanise action, political consensusis not a prerequisite for policymaking,and the only thing worse than beingwrong is being confused. But why isthe jobs agenda a policy orphan?

The complexity or impossibility ar-gument does not fly; the thousands ofyoung job seekers this writer met at arecent jobmelahad five problems.These problems create an opportunityfor a party willing to offer a jobs narra-tive that is specific, finite and action-able. Lets look at each problem and ashort- and long-term solution to each.I cant get a job despite my education:This does not mean she will be unem-ployed; it means the jobs she is gettingpay her a salary she could have gotwithout her education. The mismatchbetween what the education systemproduces and what employers want ishuge. The short-term solution is set-ting up a national network of commu-nity colleges offering two-year associ-ate degrees not normal degrees on adiet but vocational training on ste-roids. The long-run solution is to shift

the focus of the Right to EducationAct from enrolment to learning be-cause we now know that you cantteach somebody in three months orthree years what they should havelearnt in 12 years.I cant get a job without work experi-ence:A toxic consequence of Indias90% informal employment is thatfresher hiring is down from 50% of to-

tal positions to 20%. Why would em-ployers risk taking a starry-eyedfresher who is unrealistic about theworkplace when you can get some-body with two years of work experi-ence in informal employment at thesame cost? The solution is rewritingthe Apprenticeship Act of 1961. Only2.5 lakh apprentices is a nationalshame, because learning-by-doingand learning-while-earning are pow-erful vehicles for skill development.I cant live on half my gross salary:

India has one of the highest mandato-ry payroll confiscation regimes in theworld for low-salary workers: 48% ofgross salary is taken away for PF, ESI,EDLI, EPS, LWB and so on. This ensu-res that 100% of net job creation since1991 has happened in the informal sec-tor where gross salary is equal to netsalary. PF is the worlds most expen-sive government securities mutualfund (fees of 440 basis points) and ESIis the worlds most expensive healthinsurance scheme (claims ratio of on-ly 50%). The short-term solution is toallow EPFO participants to pay intoNPS and employees to buy health in-surance instead of ESI. The long-termsolution is to reduce this 48% to 25%

because in a cost-to-company world,benefits are not over and above salarybut come out of it.I cant migrate to a metro on my sala-ry:Employers care about nominal wa-ges but job seekers care about real wa-ges. Entry-level salaries have not keptup with the costs of living in a metro.But Indias job magnets Gachibow-li, Magarpatta, Bangalore, Gurgaonand Mohali are high-quality, low-cost, mixed-use environments.

India only has 50 cities with more

than a million people, while China hasmore than 300. Indias six lakh villag-es two lakh of which have less than200 people will not be job magnets.The short solution for this is metrorail in 50 cities; the long one is well-planned new cities.I dont know how to get a job:Kidsand employers have a matching prob-lem because of geography, time, andlow signalling value of education. Thematching problem is amplified for ru-ral youth coming off farms. The short-term solution lies in fixing our 1,200employment exchanges which gavethree lakh jobs to the four crore peopleregistered by making them careercentres that offer counselling, appren-ticeships, assessments, training andjob matching. The long-term solutionis an explosion in manufacturing jobsnow only 12% of our labour force,the same as the US.

Parentage and location have becomeimportant in getting jobs. But this tra-gedy can be ended by reforms in edu-cation, employment and employabili-

ty. The 2014 elections will have manyfirst-time voters who have no memoryof pre-reform India. But politics ismade of stories. Indian politicians areshort of narratives: so how about ajobs one, which appeals to the youngand does no harm to the economy?

The writer is chairman,Teamlease Services

AJobs Narrative, forPolls and the Economy

EMPLOYMENT

Manish Sabharwal

Mobile telephony in Indiahas shown remarkablegrowth, with the numb-er of subscribers risingfrom 10 million to 900

million between 2003 and 2013. Rep-orts say that this is the fastest disper-sal of any technology in the world.

Having established connectivitythrough 900 million mobiles, 30 mil-lion fixed lines and about 100 millioncable TV connections, and thus hav-ing the transmission media for aboutone billion, it is surprising that wehave only 16 million broadband sub-scribers 13 million on telephonelines and three million on cable TVand other media in comparison toatarget of 20 million for 2010, 175 mil-lion for 2017 and 600 million for 2020.

AMap without a Road

A decade ago, the Broadband Policyof 2004 set ambitious targets withoutsuggesting the way forward to conn-ect subscribers, and missed the targ-ets. Do we have the wherewithal andastrategy for achieving or exceedingthe present broadband targets, aswas done consistently for voice tar-gets after 2004?

It was around 2011 that the focusshifted back to broadband, with thegovernment declaring broadbandfor all as a national priority and lau-nching 3G and 4G auctions, realisingthat broadband density contributeshugely to GDP. The government set

these targets with the provision ofbroadband access to allgram panch-ayats (2,50,000) by laying fibre withthe help of state-owned companiesby 2014, and to all villages and habita-tions (6,00,000) by 2017.

The mai-baap government mind-set perhaps does not realise that con-nections only do not reach broadba-nd to millions of subscribers target-ed. There have to be concrete stepsenumerated in policy.

We have to concentrate on the ex-isting infrastructure first. We willneed schemes to use and share theexisting telecom towers first (fourlakh urban and one lakh rural),28,000 BSNL exchanges connectedwith fibre as backhaul to give wire-less connectivity for broadband toconsumers, and all fixed-line re-sources including the already availa-ble coaxial or optical fibre cable net-work for the last mile.

Phoney: 1 Phone per VillageWe must plan and give the networksincentives to upgrade and run shar-ed services. We have the lacklustreexperience of laying down rural li-nes with the help ofour PSUs that ledto just 1% teledensity in the first 60years of Independence, and most of

those single village telephones didnot work as no system can maintainsingle phones (more so broadband infar-flung areas). That monopoly pub-lic sector companies will lay down fi-bre lines to 2.5 lakh villages in two ye-ars and six lakh villages in five yearsis a hugely optimistic assumption,and takes us back to a 1970s mindset.

The policy also talks of commu-nity centres at these points to givebroadband-related citizen services.Similar rural telecom policies hadearlier led to disastrous results. Weknow that the huge growth in teleph-ony was achieved both in rural and

urban areas mainly by private opera-tors. This was not at the cost of PSUs,as they also grew at their own pace.

If we are serious about reachingthe target of 175 million for 2017 and600 million for 2020, we must first thi-nk of all-inclusive growth where bu-siness cases are built around sharingof existing and new towers, fixed te-

lephone lines and cable TV networkintensively for broadband dispersal,again through intelligently-structu-red schemes that are viable and att-ractive for private operators.

Most broadband in the world is onfixed lines. In India, we have to depe-nd on wireless, but the revised wire-less usage will take time to be popul-ar after it is connected. Cable TV net-works require huge capital to upgra-de to broadband networks.

Take that Missed CallThese operators will not be in a posi-tion to upgrade without running voi-ce and other value-added services.There could be other methods likeuse of white spaces in spectrum to begiven to operators who want to usethe same incentive to provide broad-band services in earmarked areas.

Another possibility could be the

proposed Convergence Bill if it cou-ld become law, so that all the emergi-ng value-added services are permiss-ible by law, and are not at the mercy ofthe licensers discretion.

It is also extremely important thatbackhaul is provided at minimalrental charges just for recovering theoperations and maintenance costs.

Even if all the proposed towers areconnected, we will not reach the pro-posed numbers unless there is widedispersal of broadband connectionsthrough wireless.

The saga of missed opportunitiescontinues in the much-hyped unifiedlicence regime, announced recently.This too falls short of expectations,even those envisioned in the new te-lecom policy of 2012. It does not per-mit active-sharing and spectrum-sh-aring to facilitate unlocking the pote-ntial of existing infrastructure. Nordoes it give shape to a new breed ofnetwork operators who could createinfrastructure as an open access net-work to be exploited by the licencedservice providers.

The writer is former chairman, Trai.Co-authored with Satyen Gupta,

former adviser, Trai, and BT

Why Broadband is Stuck

Pradip Baijal

If we are serious about reaching the broadband targetof 600 million by 2020, we must think of all-inclusive

growth where business cases are built around sharing

ARINDAM

Target-setting without aroadmapand banking only onPSUs hasmade broadbandacruel joke

GARY BASS

This book is about how two ofthe worlds great democraci-es, the US and India, faced upto one of the most terrible hu-manitarian crises of the 20thcentury. The slaughter inwhat is now Bangladesh stan-ds as one of the cardinal moralchallenges of recent history,although it is far more famili-ar to south Asians than to Am-ericans today. It had a monum-ental impact on India, Pakist-an and Bangladesh almost asixth of humanity in 1971.

In the dark annals of moderncruelty, it ranks as bloodierthan Bosnia and plausibly inthe same rough league as Rwa-nda. For the US, as Archer Blo-od understood, there are a sm-all number of atrocities so aw-ful that they stand outside ofthe normal day-to-day flow ofdiplomacy: the Armenian ge-nocide, the Holocaust, Cambo-dia, Bosnia, Rwanda. Whenwe think of US leaders failingthe profound tests of decencyin such moments, we usuallythink of sins of omission: Fra-nklin Roosevelt fighting Wor-ld War II without taking serio-us steps to try to rescue Jewsfrom the Nazi dragnet, or BillClinton standing idly by duri-ng the Rwandan genocide.

But Pakistans slaughter ofits Bengalis in 1971 is starklydifferent. Here, the US was all-ied with the killers. The WhiteHouse was actively and know-

ingly supporting a murderousregime at many of the mostcrucial moments

This stands as one of the wor-st moments of moral blindne-ss in US foreign policy.

From The Blood Telegram:

Nixon, Kissinger and a

Forgotten Genocide

ATragicHistory

Citings