Business and Economy

• An Ernst & Young industry survey in United Kingdom found that many senior managers believe that the center of gravity of wealth creation will shift to India, China, and Russia in the next 5 years. The 50 directors surveyed said that their directors are "sleep-walking" and not reacting fast enough. They predicted that some of the well-known UK companies will be bought by companies from these countries. Mittal Steel, the largest steel company in the world and owned by an Indian expatriate, made a bid for Arcelor, the second largest steel manufacturer and a European symbol; the buyout offer has been spurned with nationalistic overtones.

• The Government came in for sharp criticism on its decision to import 500,000 tons of wheat from Australia. The opposition accuses the Government of mismanagement of buffer stocks, bad planning to procure such a large quantity on the more expensive spot market, and lack of analysis to track supply, demand, and pricing. Many independent trade experts say that the Government should have allowed private importers to import such a large quantity as it did to meet sugar shortages. The experts project that the Government will pay an extra 30% for the lowest quality grain. The other issue is that the large import will arrive when domestic farmers will be ready to sell their Rabi crop. With a projected lower price for the imported wheat and an abundant domestic price could create a reverse problem where farmers may not get a fair price for their crop. The Government buys only 1/3 of the wheat production and 2/3 is left to market forces; this makes farmers vulnerable to a Government-created glut.

Democracy, Politics and Judiciary

• The Tribal Affairs Ministry Secretary Meena Gupta disclosed that the Scheduled Tribes Bill, also known as Recognition of Forest Rights Bill, would be tabled in the next Parliament session. She said that forest officials were treating tribal population living in the forests for millenniums as “encroachers” and is often harassed. The Draft National Policy prepared by the Ministry said that 8.5 million tribal people have been displaced from the forests till 1990 to accommodate some mega "development" projects. The tribal population makes up 55.16% of the total displaced population in India. Referring to a report from the Forest and Environment Department, she said that various tribes occupy 1.3 million hectare of 7.4 million hectare total forestland. She pointed out that of this, only 365,000 hectares of the "encroached" land has been grand fathered and "regularized." The cut-off date for claiming rights to live in the forest is October 25, 1980 and claimants can submit police case, forest case, or other documents to support their claim. The safety measures of this bill to protect the tribal population from land mafias, industrial encroachers, or from binami (front or fictitious names) transactions is not known. 

Terrorism, Defense, Security and Science & Technology

• An official of Pratt & Whitney, world’s leading aircraft engine manufacturer, described the Indian Kaveri engine as "truly world-class." The Kaveri engine project is 100% indigenous in design and prototype fabrication and has gone through several high-altitude tests. However, the Defense Research & Development Organization (DRDO) seems to have to hit some bottlenecks in taking this project further. Refusing to say what these bottlenecks were, DRDO floated a Request for Proposal (RFP) seeking international partners on Indian terms. US-based Pratt & Whitney and French Snecma (of Safran group) are two companies who responded. Snecma feels it has an edge as it had helped the DRDO with previous technical bottlenecks in the Kaveri engine.

• Philippines-based International Rice Research Institute (IRRI) Director Robert Zeigler asked for visiting Indian President Abdul Kalam's support to start collaboration with Indian scientists. He wanted Indian help to develop a rice variety that can withstand climatic changes due to green house gas (GHG). The IRRI is also trying to popularize its "drummers" that it invented in 1980; a contraption that will reduce labor costs, save time for re-plantation, and increase production. Experiments in West Bengal saw a 300-350% profit over the USD 20 initial cost. Farmers in Philippines have seen a higher profit rate due to economies of scale. Vietnam has improved this invention by using plastic instead of iron so the weight, initial cost, and making the device more portable. With falling rice prices, farmers can still maintain margins through technology innovations such as drummers.

Neighbors

• Bugti insurgents fired over 100 rockets in the South Western province of Baloachistan near the largest gas field killing 8 people, injuring scores, and damaging gas and water pipelines. Sui, the place of this incident, is about 700 kilometers from the capital Islamabad. Last month, Pakistan launched an intense attack on Bugti tribal villages using helicopter gun ships, artillery, and combat aircraft killing hundreds of civilians. Sustained international exposure has forced Pakistan to reduce the use of such excessive force in what the Human Rights Commission of Pakistan (HRCP) calls a race-based discriminatory campaign. The tribes themselves accuse Pakistan of unduly exploiting natural resources of Baloachistan, building the Kalabagh dam that would cut water to Baloachistan and threaten their existence, and administrative high-handedness. Pakistan has a history of fighting Baloach rebels. In the 1973 insurgency, 3000 army, 5000 insurgents, and innumerable civilians lost their lives. The province never truly integrated with Pakistan.