TRAFFICKING IN WOMEN AND CHILD

  

   Historical Perspective –

Trafficking as such is not a modern day development. It existed during ancient and medieval period across the earth. We have heard the name of Amrapali, a famous dancer in the Lichhavi republic in the erstwhile republics in ancient India. During Budha and Jain period, we came across the word Ganika. It refers to prostitute. Thus, there is sufficient evidence during this period, that the trafficking in one form or the other did exist. In Mauryan period also, we came across the word Ganika. In Ashokan edicts and inscriptions, we find references which suggest that the institution of prostitution existed. The sale and purchase of woman during medieval period was very common. With the advent of Mongols, Afghans, Turks and Moguls, the conditions of woman in many part of India further deteriorated. Women were looted and distributed like Booty after the war. Thus, this was a common phenomenon during the ancient and medieval times. In many parts of the world also, the trafficking in women was present in form and the other. We have many references of slave trade in many parts of the world.

• IN THE MODERN PERIOD-

In this period, the nature, magnitude, intensity and character of trafficking underwent radical change. According to one estimate, about 7 Laks women and children are trafficked across the world. Trafficking is now considered as the third largest sources of profit for organized crime, behind only drugs and weapons. According to one estimate, the trafficking business’s annual turnover is about 5 to 7 billion dollars. Former Soviet Union is now believed to the largest source of trafficking for prostitution in the world. In nutshell, we can say that there is no country in the world, where trafficking is not found. This is a problem that affects virtually every country in the world. Generally, the flow of trafficking is from less developed country to an industrialized country.

DEFINITION-

Conventionally speaking, the meaning of trafficking is the trading into something which should not be traded in. For example, human trafficking, drug trafficking and human trafficking etc. So far as the definition of Trafficking is concerned, it is set out in article 1 and 2 of the 1949 convention for the suppression on the traffic in persons and of exploitation of the prostitution. It refers to all acts involved in the transport, harboring, or sale of persons within nation or across International borders through coercion, force, kidnapping, deception or fraud for purpose of placing persons in situation of forced labor of services such as forces prostitution domestic servitude, debt bondage or other slavery like practices. In case of minor, the term trafficking connotes a different meaning. Here the children even taken voluntarily and putting in aforesaid servitude comes under the purview of trafficking. 

VICTIMS OF TRAFFICKING-

1. Women and children in general, because they are comparatively more marginalized.

2. Women and Child living in slums in urban areas or working in farm, pretty trading etc. low income is the most important cause for this.According to report of an NGO, Naujawan Bharat Sabha and Bigul Mazdoor Dasta, which is based on the information retrieved from the competent authority under RTI, 7912 children went missing between January, 2007 to June 2008, but police registered only 765 cases. The report further suggests that about 80% of the missing children belong to poor families.

3. Ethnic minorities, illegal migrants, hill tribes and refugees.

4. Women working away from home as domestic servant or otherwise.

5. Children working in hotels, dhabas, restaurants, and homes are easy prey to this trafficking.

6. In hope getting a better life and salary, women and especially young girls fall prey to touts and pimps. 

7. Liberalization, Privatization and Globalization also in away has aggravated this problem.

REASONS FOR TRAFFICING-

1. Poverty is the root cause of this problem. With the advent of globalization, the population tend to move more freely across the border both legally and illegally and falling prey to the greedy criminals of organized crime across the world. With the erosion of the concept of a welfare state, the subjects are now left at the mercy of the market forces.

2. Subordination of women in the society.

3. Other social evils like dowry which sometimes force the fathers to sell off their daughters.

4. Social recognition in which son is preferred to girl.

5. The high demand, worldwide, for trafficked women and children for sex tourism, sex workers, cheap sweatshop, labor and domestic workers.

6. Sex Tourism is a newer concept and is becoming one of the major causes of trafficking. Countries like Australia, Thailand, Hong Kong, Singapore, Malaysia etc. have become heaven of sex tourism. This is attracting hundreds of thousands of women sex workers. The international criminal gangs are operating and earning billions of dollars in this industry.

7. Inadequate and non-stringent laws. Generally laws are such in which prostitutes are punished and the perpetrators got escape free. Although trafficking in children is an offence i.e. sale of child is an offence but abduction of children for begging is still not an offence. For instance if at all it is established that children who are on the traffic signal are being forced by some gang, we can book them in beggary Act, but the traffickers go unscathed. In India the figures of lost children is increasing at an alarming rate, but unfortunately the laws are not being given more incisors in order to see that the trafficker are punished more stringently.For instance, Delhi do not have a law of its own regarding beggars.The National capital still invoke Bombay Prevention of Begging Act, 1959, which lacks teeth to deter the trffickers.

8. Inter-personal, intra and inter regional economic disparities have also added new dimension into it. Large-scale immigration in search of better life and bread, the illegal immigrants are easily made prey to the trafficking.

9. The Child trafficking in India has increased alarmingly due a number of reasons some unrelated to poverty. Luring towards a better life force the children to run from their homes and therefore this should be tackled in a social perspective. No law can prevent it. The breaking of family relations, alcohlism in parents, frequent querreling among them are major causes of this problem. It has been seen in recent times that children of economically better families have also left their homes under above mentioned circumstances. The ultra-nuclear family concept in which the grand parents have lost their space has left the children dependent either on electronic entertainments or on web friendship. Unfortunately both means lack ethos and morality. Both are market oriented and centered on profiteering. The scences of violence, sex, high profile page-3 life styles lure the children of immature and growing minds of the children who sometimes fled from their homes in a hope of getting these things and are trafficked.

ACCORDING TO SURVEY CONDUCTED BY AN NGO ON THE DIRECTION OF SUPREME COURT FOLLOWING MECHANISMS HAVE COME TO LIGHT-

MECHANISMS AND TECHNIQUES OF TRAFFICKING-

REASONS AND PERCENTAGE

BEFRIENDING 16.4

PROMISE OF JOB AND MONEY 52.4

PROMISE OF MARRIAGE 4.5

ADOPTION 0.2

BLACKMAIL 2.8

USE OF FORCE 11.6

PERSUADING HUSBAND FOR 

UNDERGOING TRAFFICKING 0.2

FAMILY TRADITION 2.1

MISC 9.8

1. Women and Children are generally recruited from rural areas and transported to the destinations. In this process, they are handed over and taken over by a number of brokers and intermediaries. 

2. Local contacts.

3. Relatives and friends.

4. Direct sale.

5. Deceit.

6. Debt bondage.

7. Kidnapping.

8. Falsification of documents.

9. Bribes.

10. Transportations

11. Aspiration of better life and better career opportunities caused them to be allured by touts. 

12. Drug addiction.

13. Hotel industry.

STRATEGIES TO COMBAT TRAFFICKING:

1. Through legal and criminal justice system. Law enforcing agencies are required to be sensitized and made sensible by way of training and motivation.

2. Stringent penal provisions for the traffickers. Amendment to the IPSA is on anvil, it should be therefore passed by the parliament at the earliest. It provides for, among other things, non-re-victimisation of the victims. In the existing laws, the victims are placed at par with the offenders in terms of investigation and punishment.

3. Rescue and Rehabilitation system is to be strengthened.

4. Creating awareness among target groups.

5. Making economically self reliant to women.

6. Demand and Supply reduction through public awareness and creating job opportunities at village itself like NAREGA etc.

7. Promoting girl education and women empowerment.

8. Increase in the number of girl and women in security forces.

CONVENTIONS RELATED TO TRAFFICKING

1. INTERNATIONAL AGREEMENT OF 18 MAY 1904 FOR THE SUPPRESSION OF THE WHITE SLAVE TRAFFIC, AS AMENDED BY THE PROTOCOL APPROVED BY THE GENERAL ASSEMBLY OF THE UNITED NATIONS ON 3 DECEMBER 1948.

2. INTERNATIONAL CONVENTION OF 4 MAY 1910 FOR THE SUPPRESSION OF THE WHITE SLAVE TRAFFIC, AS AMENDED BY THE ABOVE-MENTIONED PROTOCOL,

3. INTERNATIONAL CONVENTION OF 30 SEPTEMBER 1921 FOR THE SUPPRESSION OF THE TRAFFIC IN WOMEN AND CHILDREN, AS AMENDED BY THE PROTOCOAL APPROVED BY THE GENERAL ASSEMBLY OF THE UNITED NATIONS ON 20 OCTOBER 1947,

4. SLAVERY CONVENTION,1926

5. FORCED LABOUR CONVENTION, ADOPTED IN 1930.

6. ABOLITION OF FORCED LABOUR CONVENTION ADOPTED IN 1957

7. INTERNATIONAL CONVENTION OF 11 OCTOBER 1933 FOR THE SUPPRESSION OF THE TRAFFIC IN WOMEN OF FULL AGE, AS AMENDED BY THE AFORESAID PROTOCOL. 

8. LEAGUE OF NATIONS DRAFT CONVENTION IN 1937 

9. UNIVERSAL DECLARATION ON HUMAN RIGHTS,1948. IT HAS BEEN TRANSLATED INTO 350 LANGUAGES ACROSS THE WORLD.

10. CONVENTION FOR THE SUPPRESSION OF THE TRAFFIC IN PERSONS AND OF THE EXPLOITATION OF THE PROTITUTION OF OTHERS APPROVED BY GENERAL ASSEMBLY RESOLUTION 317 (IV) OF 2 DECEMBER 1949 AND COME IN TO FORCE IN 1951

11. WORST FORM OF CHILD LABOUR CONVENTION, 1999.

12. PROTOCOL TO PREVENT, SUPRESS AND PUNISH TRAFFICKING IN PERSONS, ESPECIALLY WOMEN AND CHILDREN, SUPPLEMENTING THE UN CONVENTION AGAINST TRANSNATIONAL ORGANISED CRIME, 2000. 

13. SAARC CONVENTION ON PREVENTING AND COMBATING TRAFFICKING IN WOMEN AND CHILDREN FOR PROSTITUTION,2001

14. COUNCIL OF EUROPE CONVENTION ON ACTION AGAINST TRAFFICKING IN HUMAN BEINGS 2005

LAWS RELATED TO PREVENT TRAFFICKING IN INDIA:

Following are some of the legislations which provide protection against trafficking and also provide for punishment to those found involved in it.

1. The Constitution of India. The constitution itself guarantees the protection of women and child against any crime.

2. Immoral Traffic Prevention Act, 1956 popularly known as SITA or IPSA. It provides for stringent punishments to the convicts. It is being amended very soon to make it more stringent for the offenders.

3. Indian Penal Code, 1860.

4. Indian Evidence Act,1872

5. Code of Criminal Procedure, 1973.

6. Bombay police Act, 1951.

7. Delhi Police Act, 1978.

8. Juvenile Justice (Care and Protection of Children) Act, 2000.

9. Probation of Offender Act, 1958.

10. Indecent Representation of Women (prohibition) Act, 1986.

11. Goa Children Act, 2003. This law is considered to be a pioneer in the field of prevention of child trafficking. Law on national level is being mooted out so that it could be made applicable throughout the country.

12.Bombay Prevention of Begging Act, 1959

INITIATIVES TAKEN BY MINISTRY OF WOMEN AND CHILD IN ORDER TO COMBAT TRAFFICKING OF WOMEN AND CHILD:

1. NATIONAL PLAN OF ACTION PREPARED IN 1998.

2. ISSUED GUIDELINES TO ALL STATES TO IMPLEMENT IT.

3. CENTRAL ADVISORY COMMITTEE IN DWAC( DEPT OF WOMEN AND CHILD) SECRETARY OF THIS DEPT IS EX.OFFICIO CHAIRPERSON AND MEMBERS FROM ALL CONCERNED MINISTRIES AND OTHER LAW ENFORCING AGENCIES ARE MEMERS. MEETINGS ARE HELD TRI MONTHLY.

4. PROTOCOL FOR PRE RESCUE, RESCUE AND POST RESCUE HAS BEEN FORMULATED.

5. MWCD (MINISTRY OF WOMEN AND CHILD DEVELOPMENT) HAS FORMULATED THREE MANUALS FOR JUDICIAL OFFICERS, MEDICAL OFFICERS AND COUNSELLORS RESPECTIVELY.

6. MWCD IS PREPARING MANUAL FOR POLICE AND PROSECUTORS ALSO. ANTI HUMAN-TRAFFICKING UNITS TO BE SET UP IN POLICE DEPTT.

7. MWCD HAS SUGGESTED MINISTRY OF HOME AFFAIRS (MHA) TO ENSURE THAT ATLEAT 30% SEATS ARE FILLED BY WOMEN IN POLICE FORCE.

8. CERTAIN AMMENDMENTS ARE PROPOSED IN IMMORAL TRAFFIC (PREVENTION) ACT, 1956. SECTION 8 AND 20 ARE BEING DELETED. THESE SECTIONS REVICTIMISE THE COMMERCIAL SEX WORKERS (CSW).WHO ARE THEMSELVES VICTIM OF TRAFFICKING. THE ‘ TRAFFICKING IN PERSONS’ ON THE LINES OF DEFINITION OF TRAFFICKING OF UN IS BEING INSERTED IN THE PROPOSED BILL SO THAT IT CAN PROVIDE PUNISHMENT TO THE PERSON WHO VISITS A BROTHEL FOR PURPOSE OF SEXUAL EXPLOITATION. THE BILL TITLED ‘IMMORAL TRAFFIC (PREVENTION) BILL, 2006 IS UNDER CONSIDERATION OF THE PARLIAMENT.

9. SWADHAR HOMES SCHEMES FOR VICTIMS. AND SHORT STAY HOMES ARE BEING CONSTRUCTED IN MANY STATES.

10. ONE COMPEHENSIVE SCHEME IS UNDER FORMULATION. ONE IS FOR PREVENTIVE AND OTHER IS RESCUE AND REHABILITATION OF THE VICTIMS. VARIOUS STATE GOVT AND NGO ARE DELIBERATING UPON IT.

SOME STEPS TO CHECK CROSS BORDER TRAFFICKING-

• To set up internal task force to check and combat this menace

• UNICEF has under taken a task on behalf of MWCD to solve problems in identifying Bangladeshi victims and evolve mechanism to repatriate them easily.

• Sensitize the security personnel responsible for border patrolling.

• Create data base for pre rescue, rescue and post rescue operations.

• Participation of stakeholders in policy making formulations. 

INTERNATIONAL EFFORTS TO POPULARISE HUMAN RIGHTS.

1. EU SPENDS 140 MILLION POUND ON ‘EURPEAN INSTRUMENTS ON DEMOCRACY AND HR

2. THE DECLARATION HAS BEEN TRANSLATED INTO MORE THAN 350 NATIONAL AND LOCAL LANGUAGES.

3. TREATY OF ROME.

4. EU FOUNDING TREAY. WHICH ENSHRINES HUMAN RIGHTS AS PREREQUISITE FOR JOINING THIS UNION.

RECESSION IN INDIA; HAS IT REACHED?

THE SIGNS OF DISPAIR;WILL IT DISAPPEAR?

The global economic crisis has slowly been spreading its bloody tentacles over Indian Economy. There may be difference of opinion with respect to the magnitude of its effects in terms of percentage or odd figures, but there is no denying the fact that the contagion has started spreading gradually into the financial and economic health of the Nation.

TRENDS AND FIGURES-

Figures released by Index for Industrial Production (IIP) a week ago stated that the Industrial production has shown negative growth of 0.4%. The data suggested that in the same month of previous year, the growth in Industrial production had been 12.2%. The figures also suggested that except the coal, all other key infrastructure industries like cement, electricity, finished steel, crude oil and petroleum refinery products etc. showed growth in decline mode.

These data sounded alarm in the North Block and the then FM hurriedly reviewed the situation. Soon after this, one set of disagreement appeared in the some of the Newspapers refuting the figures on the basis of method of calculations in finding out the figures of Industrial growth. IIP also made some correction and clarified that the slowdown is not of that magnitude and the figures are a little bit miscalculated and thereby inflated.

Nonetheless, there is no denying the harsh reality that the slump has started making its jittery felt in many sectors of the economy. Kamal Nath, the Commerce Minister states that there is decline of 26% in FDI, which means less funds coming into the economy from outside. According to one estimate, the FDI had swelled over a period of time and has risen from a dismal 95,639 Crore in 2003-04 to rocketing 16,54,949 Crore in 2007-08. The external commercial borrowings (ECB) which had registered 30% increase during 2006 to 2007, suddenly showed nosedive in October, 2008, when it declined from 283.49 Crore in September 2008 to 112.52 Crore in October, 2008 showing a reversal trend of 30%.

If fact, the total FDI from US itself during 2000- 2008 is about 5.4 billion USD. The worst hit by this reverse cash flow is the software industries, which witnessed decline of 5.8% in FDI. This sector has been the fastest growing among all sectors registering 70-80% growth rate per annum over a period of time, contributing 8.4 billion USD in 2007-08 to the FOREX on the country. 

The swelled FOREX and spilling FDI have also been witnessed in increase of the share of Import-export to GDP, which has increased from 21.2% in 1997-98 to 42% in 2008-09. Undoubtedly, since the contraction in global trade, volume of export-import would now decrease resulting in cascading effect on the overall growth of the economy. In fact it has experienced 12% down fall in the month of October, 2008. 

COMPARATIVE EFFECTS ACCROSS THE GLOBE-

The US, UK, France, Germany, Italy, Canada, Japan and a host of other developed Nations have officially entered into Recession. Most of them have announced so-called bailout packages also for taking the ship out of the economic tsunami or at least to mitigate the effects of this contagion on their people. For instance USA, Russia, UK, Germany, Belgium, Ireland, Iceland, and France injected 990, 200, 876, 50, 16, 864,300, billion US dollars respectively in form of bailout packages. Indian and China however acted slightly differently. Instead of injecting money directly into market, China launched massive infrastructure construction by making available 586 billion USD and undertook massive construction in roadways and railways, whereas; India reduced CRR, SLR, Repo and reverse Repo rates and increased the diameter of pipes flowing money into the market through Banks. It is due to this paradigm shift in strategies of mitigating the crisis, India and China stand at slightly different stage. 

But in West and America, these monetary injections also could not act as anti-pyretic and the fever continues to run high except for transient respite in the economy. The growth rate of Japan has shrunk to less than one percent and rate of un-employment is rising unprecedentedly. Only few days ago, Sony, the electronic giant, has decided to cut the job by 80,000 and to shut 10% of its factories across the world. 

The US economy is worst hit leaving 5, 73,000 Americans jobless, in Britain it has dangerously reached 1 million, 75,000 increase from last month. Thousands of European and American citizens are left homeless now due to debt-fuelled housing bubble. 

The US labour department’s figure suggests that the rate of unemployment has increase to 6.7% in November, 2008. The GDP of USA in Q3 is dismally –0.5%. Federal Reserve estimation is that the US economy is expected to contract at an annual rate of 5% or so.

The commerce department is not letting loose hope and unenthusiastically suggests that the economy will grow up to 4%. Even if this figure is accepted, it is hopelessly poor in view of the past performance. Financial market is in shambles. The Federal Reserve has been continuously decreasing the rate of interest but in vain. The magnitude of fiscal leverage and financial deregulation are such that the treasury department has not yet been able to know that how much money actually is involved in ‘Toxic assets’ of the Banks in America facing closure, so that healing measures might be taken accordingly.

The other indicators in US are also not encouraging. For instance, the consumer spending has come down by 3.4% and consumer durable asset spending has fallen drastically by more than 14%, which would led to further cut in supply resulting in contraction in the economy. The Keynesian spending has so far not been able to bring the economy on tract. 

Russia could also not remain insulated and an ‘island of stability’ as referred by its Finance Minister Alexei Kudrin. Russian FOREX of 600 Billion USD is fast depleting and causing concern in top echelon including Putin. The manufacturing industries witnessed 15.3% plummet, whereas; production in core infrastructure like coke, cement, fertiliser and rolled metal fell by more than 30%.

Similar is the case in other parts of Europe also. The growth fell to -0.5% in Germany, to -0.3% in France and Italy and not surprisingly zero % in Netherland and Spain. It is said that friendship is tested in distress; the non-consensus among the 27 members of European Union (EU) has once again proved Shakespeare’s saying true that when sorrows come, they do not come in single species but in battalion. 

The ‘European Rescue Plan’ of EU has failed to take off owing to lack of consensus among member countries. Germany is reluctant to support Britain and France on most of the issues. There are several issues where disagreement is putting hurdles in progress. The confluence of disputes may be no coincidence. The disagreement is such that Ms Markel was not even invited to a ‘mini- European summit’ in Downing Street. Such disagreement at this crucial juncture will make European predicament more difficult and worsen the situation much more exponentially. The scramble for leadership in new global financial order has begun.

The much talked Washington Summit held previous month, has also failed to yield positive and healing results because elusive consensus could not be arrived at. The West’s frowning on capital control and their staunch penchant for laissez-faire have been allowing the situation going from bad to worse. 

World Bank has perceived the above situation and has recently forecasted that the Great Depression of 1930 is looming large and situation which followed thereafter is likely to be repeated again globally. 

INDIAN CONTEXT-

MONETARY AND FISCAL STEPS-

Indian economy, though in stress, has been doing fairly good, especially in view of prevailing economic malady all around. The growth rate is expected to be 6.5 to 7.5%, if not more. The rate of inflation has been witnessing downward trend in successive weeks and has come down to single digit number, it is expected to come down further, thanks to the bold and effective fiscal and monetary measures taken by RBI and Ministry of Finance.

The major contributors to the GDP like service and agriculture sectors have not hitherto affected as badly as other sectors. The flow of FDI in service sector which roughly contributes 45-50% to GDP has risen from 13,903 Crores in 2003 to 1, 43,776 Crores in 2007. In terms of percentage also, FDI in this sector has registered increase of 23.2% in 2008, which is 1.2% more than the previous year. 

Agriculture- it continues to play a vital role in growth of India contributing 20-24% to the GDP. As the financial market has very little to do with the agrarian economy, the financial crisis has not affected this sector to the extent it has affected other sectors of the economy. The ‘LOAN WAIVER’ of the Union govt announced in the budget this year has provided stimulus to this sector and is working as bailout package. Although it has failed to check the farmer’s suicide completely and according to National Crime Record Bureau (NCRB) 16,632 farmers have committed suicide in 2007 in which 4238 have lost their lives in Maharashtra only. This situation must change; let feeders of nation do not die for want of food. They actually constitute what we call ‘fundamentals of economy’.

RECIPE TO KEEP ECONOMY VACCINATED AGAINST EFFECT OF PANDEMIC OF ECONOMIC SLOW DOWN IN INDIA -

The economic policy of any country is not governed by the kind of people who govern the country; rather by the kind of people governed. Here lies the crux of the problem as well as solution. Instead of mimicking the west and US, we should think in terms of evolving strategies to mitigate the after effects of global contraction by increasing the domestic saving and domestic market demand. There are some steps which are urgently required to mitigate the effects of global recession-

1. MAKING AVAILABLE MONEY FOR PUBLIC SPENDING-

With the flight of foreign capital, the market is likely to contract leading to fall in production and demand. The consequential effect would be as expected, be discernible in rise in unemployment. This would create a vicious circle and if India gets trapped into it, would enter into recession. It is said that every cloud has a silver lining. The best way to get insulated from it is unearth capital and money from within, instead of begging from others. We need to have voluntary disclosure scheme (VDS) like measures to take the black money out of the shelves of millions of people in India. The volume of domestic saving in Banks and post-offices can further be increased by taking some specific monetary policies. This would ensure increase in availability of liquid in the market and help taking fiscal steps to tide over the crisis more effectively. Help from external source at this juncture when every nation, rich or poor are facing acute fiscal pain, is a futile and unwise venture.

2. NEED OF PARADIGM SHIFT IN LENDING PATTERN OF MAJORITY OF BANKS-

The fiscal and monetary steps taken so far by the RBI and Finance ministry have been not as unsuccessful, as many economists had thought. Unfortunately, all focus is converging on big industries and banks. The media hype have been diverting the govt’s attention from a very crucial sector, which is comprised of tiny and non-farm small units, which are about 5,80,0000 in number. This vast sector has been providing employment to about 105 million people in this country contributing about 30% of GDP. What a massive contribution. Ironically, these units get hardly only 4% of net Bank credit. What a neglect and what an unwise fiscal decision on part of Banks! The attitude of the Banks needs to be changed. The experiences suggest that a Bank Manger is more interested in disbursing loans to bigger entrepreneurs rather than small investors. It is perhaps due to the fact that they are interested in achieving financial targets and not physical. They feel it convenient to deal with less number of entrepreneurs for obvious reasons.

It the credit given to these units is increased only by 1%, it would bring about unbelievable change in the growth pattern of the economy. It would increase about 1, 00, 000, 00 employment and add further about 0.5% to the GDP. Merely injecting liquid into the market either directly or indirectly through cut in interest rates is not going to solve the situation for ever. The bailout packages across the world have failed to mitigate the throes of this economic ailment for many reasons, one being siphoning off the money by big banking and business tycoons. The FBI has already taken up investigation into ‘housing mortgage fraud’ and the role of Fannie Mae and Freddie Mac, the housing mortgage giants’ in the present crisis. In Russia also, about 160 billion USD has been pumped by the central Bank, but it failed to stop downslide of rouble. Many prominent citizens have written an open letter to Putin and Medvedev stating therein that the major chunk of the bailout package has been eaten up by large corporations and banks. We cannot rule out in totality, the possibility of such siphoning off incidents.

3. UNORGANISED SECTOR NEEDS STIMULUS-

The unorganised sector in this country has been hitherto one neglected area. Parliament has passed the ‘unorganised workers’ social security Bill, 2008’ only a couple of days ago. It is milestone in the economic history of this nation. At present, according to one estimate, there are as many as 30-34 Crores unorganised workers in this country. National Commission for Enterprises in the Unorganised Sector (NCEUS) has recommended for setting up of a NABARD like financial institution so that loans etc can be made available to them at comparatively lesser interest rates and more conveniently. We need to have a more generous policy towards them not because they are at the fence; rather they are contributing magnificently to the overall growth of the nation. Unfortunately even after successive robust growth, only 20-25% of the population have been dinning the slice of development and rest 75-80% are still longing for a loaf of dividend. This is not philanthropy; this is pure economics, the Keynesian theory, of which the West boasts off so frequently. Let the purchasing power be increased of majority of the population; or else the citadel of prosperity would crumble down like playing cards. This is what is happing globally. Shopaholic culture of west and unfettered financial institutions are not suitable for country like India.

4. FOOD, SOCIAL SECURITY AND RURAL DEVELOPMENT SCHEMES -

Many Western countries including America are now a little bit surprised to the see India get going with relatively more pace and throttle in this period also. The west’s frowning on laissez-faire now faces extremely rough weather. The American and European newspapers which usually used to be flooded with editorials and columns deploring and criticising slow pace of reform in India; now preach their own governance and financial system about the capitalism blended with social responsibilities. India has a well institutionalised chain of Public Distribution System (PDS) shops is roughly 4.78 lakh in number and which is catering to needs of 652.03 lakh BPL families i.e. about 30% of the population. There may be pilferage here and there in this chain of distribution of food grains, but one cannot deny the importance of these shops in terms of maintaining supply line strong enough to cater to the needs of billions of people in rural areas. It ensures actually at least enough food grains in the local market; otherwise the situation in the countryside would have been much more precarious. The availability of food grain helps stabilising the price of commodities also to an affordable level.

The social security schemes like old age pensions, family pension, widow pensions, poor students’ stipends and a host of other such schemes are like blood capillaries of the economy. Such measures are taken being taken by the west as crisis management steps; whereas here in our countries these are institutionalised but non-philanthropic schemes. These are the inherent and inalienable rights of our poor citizens, we believe. These are the measures which are proving very helpful in this hour of distress. It is not merely a chance that we are not hit as hard as the west and other Nations are; rather it is due to our socialistic and humane approach which is paying dividends. 

The National Rural Employment Guarantee Act, 2005 (NREGA) was a land mark in country. In 2008-09 budget 16,000 Crore rupees has been allocated and later on additional 10,500 Crore was made available to this innovative scheme. If all wage oriented rural developmental schemes are added, it comes roughly more than 60,000 Crore rupees. Many people may not be optimistic about the performance of these schemes on the pretext of reports of corruption and otherwise, but it is acting as a bailout package in this period of economic crisis. It has magnificently increased the purchasing power of millions of poor Indians, which according to Keynesian also mitigating the after-effects of economic slowdown.

We need to do much more because much is left to do. The figures of NSSO regarding poverty and spending pattern are not encouraging. We need to bridge the gap between ‘haves and ‘have nots’. 

5. REFORMS IN FINACIAL SECTOR AND MONETARY POLICIES- 

This crisis has all set to unleash forces of resurrection and drastic reform. When Asian crisis hit majority of countries like Malaysia, Indonesia, Hong Kong etc, America prescribed menu for their revival; which included three things. Firstly not to cut interest rates. Secondly let the Banks go bankrupt and thirdly encourage saving and cut public spending. Ironically, when America is hit this time, it is doing exactly the reverse. The toxic assets have been bought, interest rates have been drastically cut and finally the public spending is enhanced and public is being advised to spend more. How can be two prescriptions for same ailment? Hindsight is always better than foresight. We must ponder on the financial sector reforms, a reform not be benefit corporate sectors only, but for the poor people also. The CD ratio of many states has to be improved in order to bring parity in the development. The blind imitation of west in this sector is disastrous; it has been proved beyond doubt. Even the Americans have now started discussing the legitimacy of blind race of development based on excessive financial leverage. Cutting of CRR, SLR, REPO, REVERSE REPO rates etc are good to some extent, but it should also be ensured that money is used to ease out the effects, and not being siphoned off by unscrupulous speculators and corporate managers as was done in USA and Russia. This might have been done in many countries also, which only time would unravel the truth. How can the govt finance and buy the toxins of some rich people with the help of the money of billions of tax payers? The financial sector should be reformed in such a way which cares for all and not for those only who could go the FMs meeting to extend their so-called valuable advices at the eve of each budget. In fact Nobel Laureate Joseph Stiglitz while delivering the 10th D.T.Lakdawala Memorial Lecture on ‘ crises Today and the Future of Capitalism’ said that this US exported recession is caused due to crisis which is US in origin due to the policies based on ‘ privatising profits and socialising losses’. This is not the capitalism, he said. 

6. ENHANCE PUBLIC SPENDING-.

According to one estimate about 80% of the infrastructure is created by the public spending. It helps create infrastructure at the same time generate enormous employment opportunities. The SEZ policy, which has been borrowed from China, should be re-defined. This cannot be allowed to be used for real-estate developers. In fact present outcry by a section of farmers in different areas are said to be due to these reasons. It ought to be oriented for industrial ventures and creating infrastructures.

7. INDIA SHOULD STAKE CLAIM IN THE EMERGING NEW GLOBAL FINANCIAL ORDER-

The American dominance on global financial order is all set to come to an end. Zakaria has predicted Post-American global economy. The wheel has turned around and American economy is in desperate need of money from developing nations like China and India. Undoubtedly, China has emerged as the biggest player and largest bargainers in this present crisis. It’s huge FOREX of 600 Billion dollar and huge domestic saving has started paying dividends. Both India and China can use G-20 forum to press for change in the global financial architecture and also speak on behalf of 152 Nations which had not been invited in Washington Summit. Globalisation, after all means maximum good for maximum numbers and not for a few, who reaped the profits and distributing the losses to the poors. 

IMF Chief has set 2% growth rate for major countries and suggested that govt spending should increase and interest rates be further cut. The question is that from where the money would come? How can govt enhance public spending? India has still a huge potential of domestic borrowing. The govt will have to instil confidence in masses to encourage bank deposits. India has to come forward with renewed vigour and stake claim to be a major player in the new world order, because it is said no one gets anything if begged, one has to claim for this.