COPING WITH CHINA

Based on a discussion at Doon University

 

Coping with china is one of the major issues for Indian economy. The question which arises is “Is it possible for India to cope up with china? If we compare the economies of both the countries, one can conclude the answer “NO”. India is amongst the fastest growing economy of the world, while china is growing with the “Accelerated Growth Rate”. Few say that the economy of china is “Artificial” while others comment on its development that it is a socialist country.

                If we compare the quality life of citizens for both countries, then according to me the life of Indians is much better than that of citizens of china. Although the HDI ranking of china is 81 while than that of India is much below which is 128.

                Political parties claim that India has a healthy relation with china. But sometimes “I wonder is it true”. China is going competition to every sector of Indian Economy. It is because of china that the small scale industries are getting closed down. In 2004 the major part of GDP was constituted by small-scale industries.

                China is making very friendly relation with our neighbor countries but not with us, this is the practical situation. If it is making good relation with Pakistan by building its airbase. China is making defense base in Nepal, Burma, Sri Lanka and Bangladesh. If we closely look to there move we can easily say that china wants to surround us from everywhere.

                India does not have defense strategy and it is ignoring the fact the china can attack. I think India has forgotten the attack of china in 1962, then prime minister Pt. Jawaharlal Nehru also claimed that we have very good relation with china.

                If we further look into the china we still remember the “Red Square Incident”, where around ten thousand people were crushed because they were protesting against the government. The country which is not taking care of its own citizens. Indian government expects that they would help them in the growth of the economy.

                The formal relation of both the countries is very strong, I agree of with this viewpoint but looking into the practical aspect I don’t agree. There is a famous saying that “China does not respect weak neighbors” and the history of china gives the example of this.

                Now if we talk about the comparison of the two economies then a famous economist of America has predicted that the GDP of china in 2040 would contribute to 40% of world GDP while that of India would be 17%. China is an Industrialised country wile India is agricultural country. China is considered as the global innovator, while has not innovated in last 2 decades. If we compare the Human Resource of both countries then the labour of both countries are cheap but the difference comes only that china has trained labour while India has unskilled labour.

                The problems faced by both countries are same poverty, population, illiterate dependency but still china is much ahead of India. It is of great concern that would it be possible for India to cope with china in the coming decade.

Brief Report on 2G Scam

2G SCAM IN INDIA

Introduction 

According to CAG report released in 2008, country bore the loss of Rs. 1.76 lac crore due to non-auctioning of the spectrum through the involvement of former Telecom minister A. Raja. According to an estimate, the money of Govt. or we can say common man which is robbed in 2G scam, with the same amount of money, food security could be provided to all the families below poverty line and above poverty line for two years. And with the same money, The Right to Education Act could be converted into the reality, it should be remembered that Rs. 35,000 crore is needed for the operations of Right to Education Act per year. Now it is clear that how many people could use these facilities but this 2G scam has deprived them. At present this 2G spectrum scam is the biggest scam in the Indian history.

Base of Allocation

             

On the basis of old prices of 2001, licenses were sold to nine companies in just Rs. 1651 crore each. While according to the CAG report, the price of each of these licenses was between Rs. 7442 crore to 47,912 crore. The CAG report states that “it was amply demonstrated between September 2007 and December 2008 that its (spectrum) demand in view of its scarcity was at its peak and thus would have fetched the market determined price at a much higher level than that of 2001 entry fee.  In spite of bidding, ‘first come first serve’ policy was used. Rules and procedures flouted while issuing licenses. Eighty five out of the 122 licenses issued in 2008, did not satisfy the basic eligibility conditions set by the DoT and had suppressed facts, disclosed incomplete information and submitted fictitious documents for getting licenses and thereby access to spectrum.

How Scam Happened?  

             

With the favouring decisions of A. Raja the licenses were allocated to the pet companies like SWAN Telecom and Unitech. Raja and his secretary and DoT secretary Sidharth Behura forcely provided licenses to liking companies. Ignoring the advice of the Prime Minister, and the Law Ministry, Raja went ahead with arbitrarily deciding that the cut-off date for issue of application of license would be advanced to September 25, 2007 and the applications received would be decided on first-come-first-serve (FCFS) basis, it was done only for the favouring companies. It is also seen that the Telecom Commission was not even consulted at the time of grant of 122 spectrum licences in 2008. On the prices of spectrum Raja overruled the Views and concerns TRAI, Ministry of Finance and Hon'ble Prime Minister's suggestions were not followed. On the allocation of 2G spectrum Ministry of Law and Justice advised a Group Of Minister to look after this process but it was also ignored.

Accused of Scam

Some known allegedly accused of the 2G spectrum scam are:

A. Raja                        -           Former Telecom Minister

R. K. Chandoliya        -           Secretary of A. Raja

Sidharth Behura         -           Former Telecom Secetary

Shahid Balwa              -           M.D., DB realty

P. J. Thomas               -           Secretary of the DoT

Kanimojhi                   -           Member of Rajyasabha

Probes in Scam

The Central Bureau of Investigation (CBI) investigating the 2G spectrum scam which has damaged a large amount of Govt. money. Other than CBI, two other committees has been set up to look into this scam.

Public Accounts Committee(PAC):

The report submitted by PAC Chairman Murli Manohar Joshi, which is most likely to be contested by members of the ruling UPA, Public Accounts Committee has held the Prime Minister’s Office (PMO) and the Cabinet Secretariat responsible for failing to take ''corrective action'' while censuring the prime minister for ''some unfortunate omissions''.

Joint Parliamentary Committee (JPC):

The whole winter session of Parliament violated because of the demand of setting up a Joint Parliamentary Committee. At last, in parliament on 22 February 2011 Prime Minister did the announcement of the setting up the JPC. Now the Joint Parliamentary Committee (JPC), examining the 2G scam chaired by Congress leader P C Chacko, on the allocation and pricing of telecom licenses and spectrum.

Coclusion

             
This 2G spectrum scam is the biggest scam in Indian history, in which a central cabinet minister A. Raja misused his powers and with the Govt. Officers and owners of private companies made a loss of Rs.1.76 lac crore . If this amount of money would have used in the welfare of the society, a large no. of people could be helped through different appreciable schemes like Right to Education Act, Mid Day Meal, MNREGA, NRHM etc. These types of scams are the hurdles in the way of development in an economy. If these type of scam come into know regularly it would give heavy shocks to the growth of our economy and state of the country.

                                                                                                                                   By  -  Atul Singh

References:-

CAG report, Govt. Of India, 2008

NEWS from:-

IBN Live

NDTV

Dainik Jagran

Amar Ujala

The Hindu