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General
Awareness Updates – February 2010 Miscellaneous-2:
The
Idea of Difference
Most people are other people.*
This
belief, the outcome of social, cultural, and religious moorings, shapes our
identity. It also develops our perspective, shapes our attitude, and defines
our understanding of the world around us.
In a
multi-cultural and multi-religious country like The Idea of Identity
& Exclusivity
A society, or segment of society, may fear that identity and culture
would be swamped, whether within the state or the country at large. Smaller
groups within a state or province may have legitimate fears of being overridden
by larger or more powerful groups.
This
happens when we adopt a “solitarist” approach to human identity, which sees
human beings as members of exactly one group, sometimes defined by race,
civilization, language, or religion.
In his
seminal work, ‘Identity and Violence: The Illusion of Destiny’, Amartya
Sen says that, “(In) our normal lives, we see ourselves as members of a
variety of groups—we belong to all of them. The same person can be, without any
contradiction, an American citizen, of Caribbean origin, with African ancestry,
a Christian, a liberal, a woman, a vegetarian, a long-distance runner, a
historian, a schoolteacher, a novelist, a feminist, a heterosexual, a believer
in gay and lesbian rights, a theater lover, an environmental activist, a tennis
fan, a jazz musician, and someone who is deeply committed to the view that
there are intelligent beings in outer space with who it is extremely urgent to
talk (preferably in English).
Each of
these collectivities, to all of which this person simultaneously belongs, gives
her a particular identity or singular membership category. Given our
inescapably plural identities, we have to decide on the relative importance of
our different associations and affiliations in any particular context.”
Further
Sen says that “violence is promoted by a cultivation of a sense of
inevitability about some allegedly unique—often belligerent—identity that we
are supposed to have and which apparently makes extensive demands on us
(sometimes of a most disagreeable kind).”
Like all
ideas, the idea of a distinct identity is not, by itself, good or bad. It is
simply an idea. Of late, however, this idea of exclusivity has begun to take a
worrying shape, in Tug of War
The last few years have seen a constant tug of war between the
champions of smaller states and those who stand for the maintenance of status
quo i.e. that large states should not be divided further.
Today,
there are demands in many parts of the country for creation of new states.
These demands are not new nor are the reasons behind such demands. There have
been persistent demands for the creation of a Telangana in A.P., Vidharbha out
of eastern Maharashtra, Harit Pradesh out of western Uttar Pradesh, and a
Bodoland out of
The first
and the only State Reorganisation Commission gave its recommendations to the
Jawaharlal Nehru Government. The SRC recommended that states be organised along
linguistic lines. Hence, the first states (like Andhra Pradesh,
In making
language the only principal organising factor, other crucial factors were
ignored. Ethnicity and commonality of terrain are two important factors. When The Large States v
Small States Debate
Economic prosperity. Small states, some argue, tend to do better economically, as in the
cases of Punjab and Haryana, two of the more prosperous states in
Balanced
regional development. The advocates of smaller states
point out that large states breed deep alienation among vast sections of
people. To this end, they cite the case of
Economic
& political domination. The supporters of
the need for smaller states often voice their fears that large states tend to
dominate economically (for example,
Ease of
administration. The champions of the case for
smaller states contend that such states are easier to administer. They argue
that small states make it easier for people to reach their governments. Grants
and development funds are easier to distribute and development is more even in
various regions. Also due to smaller size and population, governments are more
responsive to people’s needs. Rebutting this, status quo champions point out
that in such case the NE states should have seen greater economic development. They
argue that smaller states, apart from being economically unviable, are often
wracked by deep fractures between various social and ethnic groups. They cite
the example of Manipur, where a simmering ethnic conflict between the Kukis and
Nagas has spawned a culture of mass killings and ethnic cleansing. Constitutional
Position
The creation of a State is a decision made by the Central Government.
Under our Constitution, it is possible for the Parliament to reorganise the states,
or to alter their boundaries, by a simple majority, in the ordinary process of
legislation.
The makers of the Constitution of India have, through Articles 3-4,
empowered the Parliament to reorganise the states by a simple procedure, a
process which the affected state(s), though free to express their views, cannot
stop. Simply put, the affected state(s) cannot resist the will of the
Parliament if it embarks on the creation of a new state. Read together, these
two Articles reflect the flexibility of our Constitution.
Article 3
of the Constitution of India says that the “Parliament of India may by law –
(a) form a new state by
separation of territory from any state or by uniting two or more states or
parts of states or by uniting any territory to a part of any state;
(b) increase the area of any
state;
(c) diminish the area of any
state;
(d) alter the boundaries of any
state, and
(e) alter the name of any state.
Provided
that no Bill for the purpose shall be introduced in either House of Parliament
except on the recommendation of the President and unless, where the proposal
contained in the Bill affects the area, boundaries or name of any of the
states, the Bill has been referred by the President to the Legislature of that
state for expressing its views thereon within such period as may be specified
in the reference or within such further period as the President may allow and
the period so specified or allowed has expired.”
Article 4 provides
that any such law may make supplemental, incidental, and consequential
provisions for making itself effective and may amend the First and Fourth
Schedules of the Constitution, without going through the special formality of a
law for the amendment of the Constitution as prescribed by Article 368, which
lays down the amendment procedures.
In fact, a
Supreme Court verdict (State of West Bengal v. Union of India, 1963) said as
much: that the boundaries of states may be altered or redistributed if the Union
Executive and Legislature so desire.
A few
examples will lend credence to the above procedures:
(a) The
(b) The Rajasthan and Madhya
Pradesh (Transfer of Territories) Act, 1959, transferred certain territories
from the state of Rajasthan to that of Madhya Pradesh;
(c) The Bombay Reorganisation
Act, 1960, partitioned the state of Last Word
The edifice of political democracy is built on the foundation of social
democracy. Equality in social, economic and political spheres lies at the core
of social democracy. It is equally important that political democracy obtains economic
contentment and even more that it gives a sense of involvement and belonging as
well as empowerment to all Indians.
Appropriate,
and careful, management of the aspirations of distinct groups, is critical to
ensure stability, good governance, and maintenance of law and order in the
country. In the light of this, the major challenge we face, as a nation, is to
absorb and resolve the clashes that may arise between contending interests,
while ensuring the freedom, security, and prosperity of all Indians.
We need to
ensure that political movements, be they for smaller states or any other cause,
do not affect the territorial integrity of our country. Simply put, we must
accommodate the aspirations of different groups in the national dream. An
* Oscar Wilde (1854-1900), Irish playwright
& novelist
** Amartya Sen, Identity and Violence: The
Illusion of Destiny (Penguin /
IMF
Head Warns of Threats to global Recovery
Speaking
on a trip to
1 Unemployment is still growing, posing the threat
of social unrest and even conflict if not tackled.
2 The risk appetite of investors is on the
rise. While investors are still not putting capital into advanced economies,
large sums are flowing into emerging economies, including Russia, Brazil, and emerging
Asia, creating the risk both of asset bubbles or of a damaging abrupt halt in
inflows.
3 The financial system remains damaged.
4 The timing of unwinding of government
stimulus measures is crucial. Although governments are now saddled with high
debts from the anti-crisis measures, trying to remove the stimulus measures too
quickly could result in a “double dip” recession, with advanced economies in
particular falling back into negative growth.
Mr.
Strauss-Kahn said the world was seeing a multispeed recovery, with different
countries emerging from the crisis at different rates. He said the IMF would
release its quarterly growth forecast shortly showing a faster recovery than
expected.
Emerging
markets, particularly in
“Our
forecast at the IMF is not a forecast of a double dip. But you never know. It
may happen and especially if countries exit too early. If they exit too early
and we have a new downturn in growth, then really I don’t know what we can do.
A lot of our toolkit in terms of fiscal and monetary policy has been used. If
we fall back into negative territory for growth it will be very, very difficult
to solve the problem; So, our advice is to be very careful,” the Managing Director cautioned.
“The best
indicator (for the exit timing) is private demand and employment... In most
countries, growth is still supported by government policies. For as long as you
do not have private demand strong enough to offset the need of public policy,
you shouldn’t exit,” he said.
Focus for 2010
Mr.
Strauss-Kahn said the focus in coming months should be on:
1 Building a sustainable recovery.
Governments should use stimulus measures to help create jobs and combat
unemployment. Joblessness was a threat to democracy and could lead to social
unrest and even war. “When we are working to try to achieve economic and
financial stability, what is at stake is not only dry figures on a piece of
paper. It’s the whole stability of the world that is at stake, and that’s why
sustainable recovery goes much further than only the rate of growth.”
2 Addressing the roots of the crisis.
Lax supervision and regulation of financial markets was an underlying cause of
the crisis. The financial sector cannot return to business as usual, and
governments must not abandon financial sector reform just because recovery is
under way.
3 Forging global cooperation.
Governments should build on the global cooperation that developed during the
crisis. The IMF is providing analytical support for the mutual assessment
process initiated by the leaders of the Group of Twenty (G-20) and will present
a paper to finance ministers at their April 2010 meeting. Mr. Strauss-Kahn said
this would be very important for the future of the world economy. “It
acknowledges that we are truly in a globalized world… There is no domestic
solution to global problems.”
4 Pursuing change at the IMF. The fund had
already changed to help combat the crisis, introducing more flexible loan
facilities, with streamlined conditionality. The Fund would push ahead with
changes in its governance structure to better reflect the weight of dynamic
emerging economies as well as reviewing its mandate. “We need multilateral
institutions that deal with globalised problems,” he said.
Stock
Market Dealers
A bear is a dealer on a stock exchange, currency or
commodity market, who expects prices to fall.
A bear
market is one in which a dealer is more likely to sell securities,
currency or goods without having them. This is known as selling short or
establishing a bear position. The bear hopes to close (or cover) such a
short position by buying in at a lower price the securities, currency or goods
already sold. The difference between the purchase price and the original sale
price represents the successful bear’s profit.
A
concerted attempt to force prices down by a powerful bear (or a group of them)
by resorting to sustained selling is called a bear raid.
A dealer on a stock exchange, currency or commodity market, who expects
prices to rise is called a bull.
A bull
market is one in which a dealer is more likely to be a buyer than a
seller, even to the extent of buying for his or her own account and
establishing a bull position.
A bull
with a long position hopes to sell the purchases at a higher price after
the market has risen. A bull position or long position occurs when the bull
owns securities.
JOBBER
A jobber is an independent dealer in securities. He purchases
and sells securities in his own name. He is not allowed to deal with
non-members directly.
Chickens are afraid to lose anything. Their fear overrides their need
to make profits and so they turn only to money-market securities or get out of
the markets alltogether.
While it’s
true that you should never invest in something over which you lose sleep, you
are also guaranteed never to see any return if you avoid the market completely
and never take any risk.
Pigs are high-risk investors looking for the one ‘big’ score in a short
period of time. Pigs buy on hot tips and invest in companies without doing
their due diligence.
Pigs get
impatient, greedy, and emotional about their investments, and they are drawn to
high-risk securities without putting in the proper time or money to learn about
these investment vehicles.
STAG
A stag is a speculator who buys a large amount of shares in a new issue
of shares (like an IPO – Initial Public
Offering) if he thinks the price is likely to rise above the offer price when
trading in that scrip begins on the stock exchange. A stag indulges in this kind of speculation with the hope to sell soon at profit.  |
