ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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Western Savants

LETTERS Issn 0012-9976 Ever since the first issue in 1966, EPW has been India’s premier journal for comment on current affairs and research in the social sciences. It succeeded Economic Weekly (1949-1965), which was launched and shepherded by Sachin Chaudhuri, who was also the founder-editor of EPW...

Malfunctioning Executive

Andre Beteille’s analysis of Indian democracy, focusing on Parliament and the judiciary (“The Institutions of Democracy”, EPW, 16 July 2011) is disappointing since it ignores the executive, which is the third pillar of parliamentary democracy. The disappointment is all the greater in today’s...

Centrifugal Tendencies

Lattars Centrifugal Tendencies S ankaran Krishna’s essay ‘The Bomb, Biography and the Indian Middle Class’ establishes the class hiatus and the enclave spirit within Indian society (June 10, 2006). I have not read Ramanna’s autobiography, but am familiar with Amitav Ghosh’s Hungry Tide. I have no...

War Crimes : Issues of Morality

The circumstances governing the abrupt whisking away of Slobadan Milosevic in a NATO airplane from a prison in Belgrade to The Hague to stand trial in the International War Crimes Tribunal for Yugoslavia has opened a hornets’ nest. Clearly, in the context of a ban by the Yugoslav constitutional court and the Yugoslav president’s stand against the transfer, it seemed like an abduction with the complicity of the Serbian prime minister lured by the western blackmail of financial aid dependent on handover of Milosevic. Morality was given the goby by actors on both sides.

US as Sole Superpower

The new Bush administration's concerns over national security reflect a stance that remains mired in cold war thinking. But the US's as yet unbridled superpower status could suffer a setback not from challenges from without but from within - its own people and the ever-widening economic recession.

World Order Designed by US

The Kosovo crisis and NATO action demonstrate that the United Nations and the international court of justice have become irrelevant in the post-cold war unipolar world. Globalisation has conferred power, prestige and prosperity on the US. India now has no choice but to develop an independent deterrent and grow stronger economically.

Post-Cold War World Order-India Slow to Adjust

Being a dialogue partner of ASEAN in the Asian Regional Forum (ARF) is much less relevant for India than being the leader and activator in making SAARC work positively and linking it to an Indian Ocean group extending towards east and south Africa. Realpolitik demands that we compete with and match ASEAN-APEC and not beg for favours.

Economic Reforms and Small-Scale Industry

Economic Reforms and Small-Scale Industry S Nanjundan The composition and terms of reference of the recently-appointed expert committee to review policies and programmes for the small-scale industries sector are a clear indication of what is expected of the committee. More and better of the same thing: finance, technology entrepreneur ship, regulation! THERE seem to be several reasons for the government's inability to enunciate a policy towards or regarding small-scale industry and to reformulate its programme. Firstly, the lofty ideals on which the programme for small industry development started in the mid-1950s-of promoting viable products and viable output-scales based on intermediate/appropriate technology - degenerated from the mid-1970s into a scramble by a lobby to share with the licensed monopoly large-scale sector in the allocation of scarce and imported raw materials and equipment and financial resources. Towards this end an unrealistic reservation list was built up resulting in many cases in cannibalising end-products manufactured through assembling imported components or providing a subsidised outlet (lower tax and wage costs) for large manufacturers. A considerable expansion of ancillary relationships has ensued providing more profits to big industry and increasing the dependence of the small on the large. There have been parallel developments: a number of small enterprises manufacture independently for the replacement market, some of them even spurious and unsafe products. More important; a middle-sized sector entrepreneured by graduate engineers and MB As has been successful in producing and marketing technologically-oriented, skilland knowledge-oriented products in electronics, computers, chemicals, engineering, food processing, etc. The informal sector in urban areas and rural cottage household enterprises in the non-farm sector have had varying experiences: niche markets for differentiated products and services for the low-income groups, agro-processing and some other industrial activities moving away from prosperous rural areas causing migration and growth of the urban informal sector. Secondly, the bewildering heterogeneity of the small industry sector and the steady erosion of their own representative organisations has willy-nilly aided the government's natural inclination to adjust the policy to suit the requirements of established large industry. Thus the continuous increase in the upper limit definition of small-scale industry and the reform package announcement of large industry or foreign direct investment up to 24 per cent permitted in small enterprises. The latter measure has reportedly not in fact attracted much investment. As regards the definition, Karunakaran, the industry minister, announced on January 13 that the limit has been increased from Rs 60 lakh to Rs 3 crorc. The measure of development is that the small man is now three times 'karodpathi'! Damn the wretched destitute poor who cannot have assets of even 3 crore of rupees! Clearly, the beneficiaries will be capital-intensive dependent anciMaries who can siphon off bank credit earmarked for (he small-scale sector.

UN at 50

UN at 50 S Nanjundan At 50 the UN is in premature gerontocracy; the decline over the last 20 years due to bureaucratic inefficiency and corruption has been compounded by the post-cold war dominance of and dependence on the sole superpower, the US. In the next two decades most countries are likely to place increasing reliance both for security and development on regional organisations and mechanisms. Therefore unless it is able to restructure as a confederal body linked to regional organisations as programming and operational arms, the UN itself has not much of a future.

Changing Role of Small-Scale Industry-International Influences, Country Experiences and Lessons for India

This paper discusses the changing role of small-scale industry in the context of the adjustments called for by the process of globalisation. The first part of the paper reviews the internationally pervasive influences of globalisation, technology revolution and structural reforms. The second part presents eight country case studies of the changing role of small-scale industry. The final part attempts to draw lessons for India from the analyses of the first two parts.

Industry and International Trade

poorer regions. Using official estimates, the authors discuss growth rates in milk production for two sub-periods, 1951-52 to 1971-72 and 1971-72 to 1987-88. The annual growth rate was 1 per cent in the first period, and 5.5 per cent in the second. However, their calculations based on feasible yield growth rates and growth rates of milch animals show that the rate was 2 per cent per year during the first period and only 3.5 per cent to 4 per cent during the second period. They argue that the difference between the two sets of estimates is due to the fact that official estimates underestimated production of milk for the first period and overestimated it for the second period. According to the authors, the official overestimation in the second' period, due mainly to the overcstimation of cow milk production by official agencies, was the result of the anxiety of the officialdom to justify the excessive emphasis given to cross-breeding for achieving a rapid breakthrough in milk production under the Operation Flood Programme. Though milk production and per capita availability has indeed increased in recent years, the data furnished by the authors indicate a falling trend in per capita milk consumption in rural areas and an increasing trend in urban areas

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