Monday, October 13, 2008

Why industrialists prefer Modi to Buddha

Industrialists always like to deal with governments that are stable, can take quick decisions and are capable of handling political opposition to any idea or project they support.

Till the Left Front took charge of West Bengal in 1977, industrialists were scared of taking up new projects in that state. Even if the government gave the go-ahead, the opposition political parties, then led by the Left, would manage to obstruct the smooth implementation of projects. Even running projects would be a headache.

All this began to change after the Left Front came to power and Jyoti Basu was sworn in as the chief minister of West Bengal. Industrialists realised that the Left Front at the helm was the best insurance they could hope for against industrial unrest affecting their factories and plants in West Bengal.

There were three distinct advantages. One, the Left Front government in the state was stable, with a huge majority the Left parties enjoyed in the Legislative Assembly. Two, Jyoti Basu was the undisputed leader of the government and he was empowered to take the final decision once he made up his mind. And three, the state was left with hardly any opposition political party of any significance.

So, all that an industrialist in West Bengal had to do was to have a good working equation with the Left Front chairman (who headed the Left coalition, of which the CPI-M was obviously the dominant partner) and Jyoti Basu (who headed the state government). Once the industrialists took care of these two offices, they would not face any problem - either from the government or from the employees' unions, which were invariably controlled by the ruling Left parties.

If industries still did not make a beeline for investments in West Bengal, it was primarily because the Jyoti Basu government did not pursue rapid industrialisation with private capital as one of its goals and, of course, it had to contend with an investor-unfriendly reputation that refused to die easily.

In any case, the first ten years of the Left Front rule saw Jyoti Basu spending most of his energies on land reforms and a sustained battle with the Centre to get more public sector investments in the state and a larger share in central taxes. He achieved significant success in his efforts at land reform and managed to convert centre-state fiscal relations into a national issue, but failed miserably in attracting central investments to the state.

A few years after the launch of the economic reforms by Manmohan Singh in 1991, Jyoti Basu also changed his industrial policy and began attracting private investment for industrial projects in the state.

His successor, Buddhadeb Bhattacharjee, built on this industrial policy. It appeared that Mr Bhattacharjee was making some headway in his plan for industrialisation in West Bengal with the help of private capital. If Ratan Tata decided to invest in Singur to produce the world-famous Nano from West Bengal, it was largely because he and his advisors had reckoned that Buddhadeb Bhattacharjee ruled the state like Jyoti Basu.

But what became clear to the Tatas in the last few months was that things had changed in Bengal and these were changes that even Mr Bhattacharjee and his administration failed to recognise and take appropriate remedial measures.

A powerful opposition political party by the name of Trinamool Congress had grown its roots in West Bengal and had won a majority of the seats in the Panchayat elections in Singur.

Worse, Buddhadeb Bhattacharjee failed to act as a chief minister who was in complete command of the situation. His government was stable. Yet he failed to act decisively and quickly to resolve the crisis and face the challenge posed by the chief opposition party in the state. After the Trinamool Congress protests began and disrupted work at Singur, Ratan Tata waited for more than a month before taking the final decision to pull out from West Bengal.

If Tata Motors [Get Quote] has now gone to Gujarat to relocate the Nano project there, it is largely because its chief minister, Narendra Modi, offers those very qualities which industrialists love in a state government. Mr Modi's government is stable, he is known for taking quick decisions and has nothing to fear from any opposition political party in the state. There is no Mamata Banerjee in Gujarat.

Nothing else really matters for industrialists when they have to decide on the location of their projects. The riots in Ahmedabad, Surat and other cities in Gujarat after the Godhra train fire may have been condemned by industry leaders. Minority communities may still not feel safe in Gujarat today. For industrialists, however, Narendra Modi meets all the criteria for choosing his state as their next investment destination.

That is where Buddhadeb Bhattacharjee has lost out to Narendra Modi. Panicked by riots in Gujarat after the Godhra riots, Kutubuddin Ansari, a resident of Ahmadabad, had fled his state and secured a safe refuge in Kolkata.

Narendra Modi lost Kutubuddin Ansari. But that did not come in the way of his convincing the Tatas to set up their prestigious Nano factory.

10 Indian peacekeepers in Congo sex scandal

Fresh investigations into a sex-for-cash scandal involving Indian UN peacekeepers deployed in the Democratic Republic of Congo have revealed that at least 10 soldiers may have had sex with prostitutes. The United Nations code of conduct in Congo prohibits peacekeepers from soliciting prostitutes.

Lifting the lid on their actions, the North Kivu Indian brigade has gathered sufficient evidence to prove the peacekeepers used children to hire Congolese girls for sex in Masisi, an exhausting five-hour drive from Goma.

The UN Organisation Mission in Democratic Republic of Congo (known by its French acronym MONUC) is served by 4,554 troops.

Hindustan Times has learnt that five children have identified the peacekeepers from 1 Jammu and Kashmir Rifles after they were shown photographs of around 100 peacekeepers based in Masisi when allegations of sexual misconduct were made last year.

North Kivu brigade commander Bipin Rawat told HT, “Initial findings confirm their involvement. We have sent our report to the army headquarters in New Delhi and recommended a thorough probe in view of new evidence.”

The peacekeepers involved returned home in April as part of half-yearly troop rotation. Charges against them would be corroborated in India before prosecutions, Rawat said.

The 18,931-strong MONUC, the largest and costliest UN deployment across the globe, is the only mission where troops can be prosecuted for sex with prostitutes. The act falls within the definition of sexual exploitation and abuse.

The investigation conducted by the North Kivu brigade, on the orders of army vice-chief Lieutenant General M.L. Naidu who was here this May, challenges the findings of a previous inquiry by the United Nations' Office of Internal Oversight Services in Congo.

To the consternation of the Indian Army, the powerful UN investigating agency had charged almost 60 soldiers with soliciting sex from prostitutes and some 40 troops with employing child labour earlier this year. Considering the findings of the army inquiry, the rot may not run as deep as the UN agency had made it out. But pre-emptive measures have been put in place to discipline troops.

Brigadier Rawat has formed flying squads to snoop on his men garrisoned in and around North Kivu's capital Goma. Raids are regularly conducted at no-go places such as nightclubs, bars and red light areas. The squads include personnel drawn from the Bangladesh military police.

Troops finishing their tenure have been placed under surveillance as sexual abuse and exploitation usually takes place during the last two months, said an officer. There is evidence to prove that posts held by soldiers provide safe haven for such activities.


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