MAOISM;WHO FUNDS THEM AND HOW TO WEED IT OUT

BRING THEM TO MAINSTREAM AND GIVE THEM THEIR SHARE

The Maoism in its different rabid and dangerous forms is increasing both in strength and territorial expansion. Once germinated in Naxalbari area of West Bengal has now engulfed states like Bihar, Jharkhand, Chhattisgarh, Andhra Pradesh, Orissa, West Bengal, Madhya Pradesh etc. it has also spread in some areas of Maharashtra and Utter Pradesh also. With passage of time, months and years more and more geographical areas are being infected by this menace. Now the stereotype concept of Maoists living in Jungles has eclipsed and they are now not only residing in plain areas but can and are striking the establishments whenever and wherever they wish.

The question that hounds every body’s mind is that who funds them and why in spite of huge security and intelligence network and establishment, India is not capable of weeding it out. In fact what to talk to wiping it out, it is spreading like a pandemic and no solution is perceptible at least in near future. 

The essay is an attempt to discuss and suggest ways to tackle this menace from politico-administrative angle.

The growing tentacles of Maoism and Extremism in many parts of the country are posing serious threats to Internal Security. One should not confuse this problem with Terrorism. The basic difference between Maoism and Terrorism is that, the former wages war against the ruling class and system but the declared aim is not seceding from the country, whereas; the later threatens the system itself. The aim of the Terrorism is generally to attack on the existence of the state itself, whereas; Maoism’s aim is to attack on the establishment.

The beginning of the Naxal or Maoist movement is traced back to 1967 itself in Naxalbari area of West Bengal. Charu Majumdar is said to be the man who started this movement in India. In Bihar the beginning of this movement is traced back to last 1970s when this movement was started in Mushari Block of Muzaffarpur district. Now this movement is an all India phenomena and has spread its tentacles in states like Bihar, Andhra Pradesh, West Bengal, Chhattisgarh, M.P., Orissa, Jharkhand and many other areas of UP and Maharashtra also. On 13th March, 2006 the then Union Minister for Home, Sri Shiv Raj Patil tabled in Parliament a Status Paper on the problem of Left-wing Extremism i.e. Maoism in India. If one looks at the reports and the figures appended with the report, one can understand very easily the problem of the left-Extremism has assumed an all-India character. According to this official report, which is often deliberately less intensifies; say that 509 Police Stations across 11 States are Maoist-Naxalites infested. It is 5.8% of the total police stations of India. The report further suggest that after the merger of CPML-PW into CPI(Maoist) in September 2004, they are reported to be trying to woo the other splinter groups and have consolidated their front organisations Revolutionary Democratic Front(RDF)to intensify their mass contact programme. Although, this report points out various steps like (a) Modernisation of Police Force (b) Revision of Security Related Expenditure(SRE) in May,2005 (c) Supply of Anti-Land Mine Vehicle (d)Long-term deployment of Para-Military forces (e) India Reserve Battalions etc, the situation is not showing the signs of improvement so far. 

Recent spurt in Maoist attacks both on the civilian and security establishments, in areas like Dantewada in Chhattisgarh, Mehboobnagar in AP, East and West Singhbhum in Jharkhand, Baripada, Kandhmal, Malkangiri etc in Orissa and many places in Bihar are of serious consequences. One DSP rank officer had been killed in a place called Bundu near the Jharkhand State’s capital, Ranchi. Few years back, the Maoists blew Jehenabad District’s Jail in Bihar and set free many jail mates including one Kanu sanyal the hard core Maoist. Such incidents have thoroughly demoralised the security forces to such extent that the police headquarters have withdrew many police pickets from the extremists infested areas. Areas, hitherto unaffected in Bihar have also been brought under its control by the naxalites and Maoists. In recent times, districts like Muzaffarpur, Vaishali, East and West Champaran, Samastipur, Madhubani, Sitamarhi and Sheohar have also been affected by this menace. In Madhuban Police Station of Motihari district, the Maoists attacked the police stations, killed many security personnel, looted the arms and ammunitions, attacked block and banks. The main target was a local MP whose petrol pump was gutted. They also set ablaze the house and business establishment of this leader. In June, 2008, the Maoists blew on block office called ‘tetariya’ in the same district Motihari. In July, 2008, the Maoists blew Laxmipur Block office in Jamui district, incidentally this area is the home town of a central minister. Thus, the Maoists have proved it without a shadow of doubt that they can blew and attack any target any time whenever and wherever they want.

On 3rd July ‘The Hindu’ writes in its editorial about the killing of the anti-naxal force in AP “the murderous attack on Andhra Pradesh anti-naxalite force, the greyhounds, marks a new watershed in Maoist insurgency. This is the first time that as many as 33 Andhra Pradesh security personnel have been killed in a single encounter. The police men evidently walked into a well-laid trap, enticed with false information about a Maoist’s conclave in Malkangiri in Orissa. If the attack was totally unexpected, it was partly because it marked a tactical departure; rather than use of land mines and typical ploy such as ambushes and raids, the Maoists are believed to have employed rocket launchers to hit a launch ferrying the policemen aback “. It is pertinent to mention here that the greyhound was formed in the year 1989 as an elite force to combat naxal-Maoist menace.

MAOIST MENACE AND NEPAL- The success of the Maoists in Nepal has emboldened the morale of the Maoists in India to a great extent. In fact their infamous slogan FROM PASHUPATI SE TIRUPATI TAK is still relevant for them. They claim that now the one end i.e. Pashupati in Nepal has been brought under their control. Many security experts opine that the establishment of a red Government headed by Maoists is going to be a major Internal Security problem in India, whereas; many political observers believe that it is in a way, a positive development in the sense that now, what they feel, the Maoists will joined the political main stream and eschew violence. This is however a proposition which only time will decipher.

FROM WHERE THE MONEY COME TO MAOISTS-

The meteoric rise of these left extremist-Maoist organisations is not only on ideological grounds. They might have been pursuing some ideological principles in the initial phase, but now their main motto is extortion of money and plundering. Reports say that they are eating up the vitals of the developmental funds meant for developmental schemes. These extremists in form of levy take major portion of money meant for execution of Governmental schemes away. That is why these schemes have failed to come up to the expectation of common people. The policy makers, without looking into the ramification of such planning, went on increasing the size of the expenditures. The more money is pumped, the more is plundered. Thus, it has become a vicious circle of corruption, plunder and rise in the power of these elements. Whether it is MCC or PWG or Party Unity or its new name CPI (Maoist), their sole purpose is to extort money and snatch arms and ammunitions from the security forces. According to one estimate, about 70% of the arms of these Maoists belong to the security forces. The attack on the security forces serves the twin purposes. On the one hand, it instils a sense of fear in the common people, so that they follow their dictates and on the other hand, they snatch the arms and ammunitions from them which enhance their strike capabilities. They again use these weapons against the security forces themselves. This is how a unique kind of vicious circle goes on. Unemployment and poverty are the major causes of its spread. I have the first hand experience of these things, when I was posted as Circle Officer, Chandil, in West Singbhum district of the present Jharkhand State in 1996-99. I found here, how the local tribal unemployed youths were recruited by the Maoists in this area. The system had been institutionalised to such an extent, that it was more systematic than the security forces recruitment drives of Government itself. Moreover, such drives are free from corruptions, whereas; rampant corruption mars the Government recruitment drives. The morale of the extremists had emboldened in such a way, that they used pamphlets and posters to advertise such recruitment drive.

Incidentally, I got an opportunity of working as an Executive Magistrate in Raxaul, a bordering town of Birgunj in Nepal. I could understand how the Maoists were spreading their tentacles across the borders. Their call of from pashupati se tirupati tak is being pursued very meticulously and methodically. These Maoist-extremists, after committing crimes could sneak into Nepal very safely. I have seen how the porous border has become heaven for the arms peddlers and drug traffickers. Due to porous and open border the surveillance is very difficult. Initially, the deployment of SSB on this border had helped the situation improve. But, after few years, this force also got contaminated. The situation on this border is far from satisfactory. Now the situation in Nepal has changed drastically. The Monarchy is said goodbye and republic is born. The Maoists have won the election and are likely to form Government. A man of Indian origin Mr. Ram Baran Yadav has been elected as the first President of Republic of Nepal. It is being hoped that the situation in bordering areas would now improve. This new experiment of election with Maoism is believed to be the harbinger of peace in other areas also. It is a right time when we should also strive to create congenial environment to bring Maoists into political process. 

LOCAL SENAS and MAOISTS- Bihar is known for a typical security problem. In many parts of Bihar Maoists have been divided on caste and region lines and have formed so many senas or local armies. The situation becomes more precarious when they fight against each other. Here are some examples of local senas-

1. Ranveer sena- Bhumihar

2. Lorik Sena- Yadav

3. Bhumi sena- kurmi 

4. Search light sena- upper caste etc.

5. Sunlight Sena – Upper caste

These local senas have unleashed a reign of terror in many parts of the state for many years. Over a decade more than thousand people have lost their lives in inter and intra group fighting. Although, these massacres are not of national consequences but undoubtedly, it puts in lots of strain on the security forces. If the Internal Security scenario has to be improved, these tendencies must be checked. There are some infamous massacres here in Bihar which speaks about the horrendousness of the misdeeds of these senas. Bhelchhi massacre, dalelchak- Baghaura in jehanabad, senari massacre, etc. are some of the massacres which have taken thousands of precious lives. They, on the one hand tatter the social fabric and on the other hand it puts in enormous pressure on the security forces. The failure of land-reform measures in this state is said to be the main cause of such problems. But this is a very simplistic interpretation of this problem. Undoubtedly, in the initial years the land-reform measures were the reasons behind these problems, but, gradually it deviated from this stand and took the shape of typical caste organisations. Many political leaders also allegedly got involved into it. The erstwhile Government in Bihar had constituted one commission headed by a retired High Court Judge Mr. Justice Amir Das few years ago. But this commission did not do anything tangible and meaningful. It took nine years and could not come out with any findings and recommendation; therefore, the Government wound it up. Nonetheless, one thing is clear that this state is very sharply divided on caste line politics, because whenever the summons were served on one political person, the fellow caste men used to raise voice against it and thus this entire exercise proved to be worthless and wastage of time and resources. 

WHY DOES THE GOVERNEMENT FAIL TO TACKLE THEM EFFECTIVELY-

1. The biggest problem in tackling this problem lies in the system or the mechanism of our planning making bodies. Surprisingly in most of cases and most of time the problems are conceived and strategies are formulated by the people who do not have firsthand experience of these problems. The high sounding ideologies and stereotype principles are allowed to prevail on the realistic problems. The high sounding policies are formulated and are asked to be implemented by those who do not have any saying in this whole exercise.

2. The local Police Stations across the country have been thoroughly neglected by our strategists who sit in the power echelons. Instead of strengthening our Police stations both in terms of men and resources, we went on creating parallel institutions sometime of conflicting jurisdictions. Constitutionally speaking the subject Law and Order is the state subject, refer Article 246 seventh schedule, and Police Stations are the corner stone of this subject. We have well equipped paramilitary forces but with no legislative and statutory powers and conversely the local police stations are ill equipped but with immense legislative and penal powers. This discrepancy has to be removed but unfortunately we still are going the same path which would lead us to wrong destinations.

3. The Panchayat election of 2005-06 in Bihar is a path breaker example. The provision of 30% reservation for women and 27% reservation for extremely back ward classes i.e. EBC has done miracle here in this state. The Panchayat elections which were held without the help of Paramilitary forces went off almost violence free and only one person was left dead and that too was reportedly unconnected to poll. It gives a clear cut signal, give the people, the common and bereaved people, the power, the real power and make them partner in the governance. Conversely in the ongoing election 19 persons including security personnel have so far lost their lives. Many experts feel that common people in most of the poverty stricken areas do not feel associated with Parliamentary and legislative elections, because common and especially poor people’s chances of fighting in these election on political parties tickets are very bleak whereas; in party less Panchayat elections their involvement in terms of their candidature is much more intense and therefore they enjoy more sense of association in the panchayat elections in comparison with the parliamentary or legislative elections. 

4. Message is clear we will have to make our democratic institutions more democratic in the sense that they do not become the club of some elite families and confined some political personalities. Ensure that more and more poor and downtrodden fight election and win after all the tenet of democracy is for the people, by the people and of the people.

PAKISTAN;SOMALIA OF ASIA

(PLAYING WITH FIRE WILL BURN YOU TOO)

The war against terror in Pakistan and Afghanistan has converted the region a war zone and India is unnecessarily made part of it। US has miserably failed to tame Taliban and Al-Qaida militants even after billions of dollars have been injected into the entire exercise. The resources in terms of man and material which have been lost in this seemingly unending war are unparallel in modern history. The situation is worsening with every passing day and the hopes of illusive victory in this strife torn country is far from sight. Pakistan is becoming Somalia of Asia and Rwanda and Darfur of the region.

In nutshell the security environment in Afghanistan and Pakistan is changing very swiftly over a week। The war against terrorism in Afghanistan led by US is not making desired headway. General Patreus has admitted that they are not winning the war. In a diplomatic style, he of course said that the situation would improve once as proposed 17000 American troops reach into Afghanistan. But many experts in strategic and defence fields feel that situations in Afghanistan and Iraq are completely different. In Iraq the country was blocked and no tangible support or logistic inputs were available for the Iraqi insurgents, whereas; in Afghanistan the situation is different. Mullah-Omar and Osama-bin-Laden, both are alive and commanding their men, in Iraq after the capture of Saddam the insurgents were virtually leaderless and unorganised. They made some desperate attacks but thoroughly unorganised and ill coordinated. Taliban on the other hand is proving so far unmatched with world’s best army, thanks to the local tribal support from both in Afghanistan and Pakistan.

The Taliban is gaining ground repulsing the govt forces from country side। In fact Hamid Karzai’s writs don’t run beyond Kabul. The ministers, governors, govt offices, embassies and even jails are not safe and Taliban is capable of striking anywhere any time. The high security prison in Kabul was blown and prisoners including Taliban inmates were freed. Situation is such that even Presidential palace in Kabul is considered ‘not safe’. The supply line across north-west of Pakistan is highly unsafe and US had to solicit support from Russia for an alternate supply route to which Russia did agree but with a bargain. It too wants a role to play in this region.

The rampant corruption in Afghanistan amongst its bureaucracy, Police and diplomats is marring all efforts of reconstruction and reconciliation। Even American army officials are not exception to these pandemics. The good will, once generated after Taliban’s ouster from Kabul, is eroding. The Afghan tribes, the autonomy loving people are frustrated with these developments and therefore; the local population is getting hostile towards the alliance forces day by day. The call of Taliban to oust, ‘foreign mercenaries’ as what it call, from its soil is finding sympathetic space in the hearts of common Afghanis also. This emotional call of Taliban has aggravated the problem for American in Afghanistan.

Under these circumstances Obama has vividly accepted that American forces are not winning the war in Afghanistan and he candidly accepted that on principle he is exploring to engage, what he called liberal and moderate elements in Taliban, in dialogue. In an interview to The New York Times, he said he ponders outreach to moderate elements in Taliban. Richard Holbrooke, the special envoy of Obama’s administration might have advised US president to so drawing experience from Iraq perhaps. In Iraq, Shias were engaged in dialogue and seems to have paid back in restoring some amount of peace. America wants to re-do this experiment in Afghanistan. Let’s hope and pray that this formulae works.
Well, only time will tell that whether any moderate Taliban really exists or not. Some experts are of the opinion that there is no good or ban Taliban and Taliban do not have any moderates, all they have are extremists and religious fundamentalists.
This marks a major shift in the established American policy towards Taliban. This is going to have profound impact on security environment in the entire region, south-Asian region in general and Indian in particular.
On the other hand the situation in Pakistan is fast moving away from normal। The showdown between Zardari and Nawaz over the Supreme Court’s verdict which went against the Nawaz and his brother Sahwaz, snow balled into an unprecedented political crisis with the General Ashfaz Parvez Kayani giving ultimatum to Zardari either to improve situation or face the music. Although the situation could be averted by timely intervention of Americans in the power echelon and Zardari was made to accede to the demand, otherwise the situation was likely to go to a point of no return.

In spite of the temporary truce between Nawaz and Zardari, the person chemistry between them is far from satisfactory and friendly. They have been still at logger heads and any political mishandling would led to all out war between them.
Even before this political and security crisis, the security situation in Pakistan has been fast slipping out of the hands of government over some time. The complete surrender of Pakistani government in swat valley which is hardly 100 Kilometres away from Islamabad, to Taliban is the testimony of ever-growing power of Taliban in Pakistan. The purchased peaces in Swat, once an alpine tourist valley in exchange of introduction of Shariat law has stopped the fire throwing mouth of the guns for the time being but the authority of the government has been thoroughly undermined. The lapis lazuli mines of swat valley have reported to be brought under Taliban’s control. The poppy cultivation in many areas in Pakistan by the Jihadists and Taliban is also adding to their coffers. According to one estimate Taliban controls more than 2/3rd of the illegal arms and drug trade which is approximately 3-4 trillion US dollars. Such is the economic and military strength of these elements.
The advance of Taliban is thus undeterred and unchecked. In fact in the entire FATA, major parts of Baluchistan and Waziristan, govt writs are not running. The situation is such that if one fine morning Islamabad itself is captured by the Taliban, no one should take it as surprise. Thus the political, security and economic situation in Pakistan is ripe for such things to happen. One thing is amply clear that the days of Zardari are fast running out. Even if this time Military takeover is averted, the situation in Pakistan is worsening day by day and getting out of control of the establishment.
Taking into consideration both the developments in Afghanistan and Pakistan, the security situation in India is likely to be seriously threatened। How far after all are our borders from these areas? T.V channels telecasted that Taliban is coming! Is it only a TRP driven rhetoric or do we really face such a situation, needs to be contemplated.

IMPACT OF THESE DEVELOPMENTS ON INDIA- India has been the softest target of Pakistani militants, right from its birth as an independent nation in 1947. We all know and it is too obvious and simple a proposition to be discussed that the humiliating defeat of Pakistan at the hands of India thrice has forced it to switch over to proxy war and subsequently low intensity war in Indian territory. The ongoing terrorist activities in India are handiwork of Pakistan and it is proven beyond a shadow of doubt.
The subjugation of Swat valley to the Taliban is of special significance with respect to India. An unholy nexus developed between Al-Qaida and Taliban in Afghanistan in order to fight against the Americans. This nexus gradually grew and flourished and took the shape of international terrorism. Many experts in this field believe that all other small or big terrorist organisations in one way or the other are logistically linked with this grand alliance of Al-Qaida and Taliban.
The figures of terrorist attacks in India and for that matter elsewhere in the world have undergone a huge qualitative and quantitative change. The mechanism as well as intensity has enhanced.
With the swat coming to the Taliban’s hegemony, this nexus has found a new base in Pakistan which is of immense strategic importance. Swat is hardly 100 kms away from Islamabad and roughly 70 Kms away from Peshawar. It these distances are calculated Indian capital New Delhi is hardly 758 kms away from Islamabad and Lahore only 427 kms. Obviously our western command will be very near to the swat valley. Pakistan has developed intermediate and short range missiles like Abdali, Ghaznavi, both short range, Ghauri, Ghauri I, II, medium range Ghauri III (ICBM) Shaheen, Shaheen I, II and III etc.
Swat is just a sojourn of Taliban and Al-Qaida duo and they will consolidate their position here. Unfortunately, the command and control system of these missile and nuclear warheads are in the hands of military rather than civilian govt. It is a well known fact that there is one another unholy nexus between ISI and terrorists organisations. Thus terrorists, ISI and military trio nexus has negated all the efforts of reconciliation. This has been revealed none other than by Nawaz Sharif himself regarding Kargil war.
It is in this perspective and situation, the recent developments in Pakistan is of serious concern for India. A democratic, stable, prosperous and non-fundamentalist Pakistan is in India’s interest.
With the Talibanisation of this strategic territory of swat valley, the above mentioned threats are looming large on India. The security situation in Kashmir is likely to further worsen. The terrorist influx into Indian Territory will increase. Kashmir went to poll and a democratically elected govt under the west educated CM came to power. The peace process is moving forward with more and more people are coming to mainstream and its testimony was witnessed in huge turnout in the last Assembly election. Peace and democracy are enemies of terrorists, therefore; this situation is likely to be threatened seriously.
If the situation in Pakistan is allowed to go to nadir, the grip of Taliban and other such forces would grow stronger and can seriously jeopardise the security of this Nation.
Any complacency on our part in this regard can prove to be disastrous। Shiv Shanker Menon was in USA to meet his counterpart Hillary Clinton. He has held wide ranging dialogue with his counterpart and many others in America. He has rightly said that the Afghanistan problem should be viewed and resolved in an integrated fashion. He meant thereby that any diplomatic or strategic manoeuvring or retreat without taking into India’s stand would be disastrous and would meet with fiasco. India has rightly objected to Holbrooke’s reported attempt to drag Kashmir into his mission. Fortunately Holbrooke too could perceive Indian’s mood and categorically stated that Kashmir is not an areas US wanted mediation. However India has to be too vigilant and pro-active vis-a-vis developments in its North West neighbours. Parvez Musaraff speech at India conclave only a few days ago smacked of Pakistan’s development. He wanted to incite Indian Muslims sentiment against the establishment. Thank to rebuff by Maulana Madni. United we stand divided we fall, though sounds and old and obsolete rhetoric, is the need of hour.

WHAT STEPS INDIA SHOULD TAKE NOW- The existence of Pakistan has become a problem not only for India but also for the whole region. Madeline Albright has rightly described it as Somalia of the region. It has become a failed state and will let many others to sink also. The ongoing so called peace process and composite dialogue are not going to solve the problem. The attitude of Pakistan towards has not changed and is not likely to change also. The so called investigation in 26/11 Mumbai attacks is the recent example of Pakistan’s lackesaidial and delay tactics attitude. Ajmal Kasab’s confessional statements and confession footage aired on Geo TV in Pakistan has cleared all the doubts but still Pakistan is not prepared to come to terms. In the given circumstances India needs to take recourse to some decisive and drastic diplomatic and military steps. Hot pursuits into Pakistan borders and demolition of training camps are some of the most desired steps. The soft attitude of India has been taken for granted by our neighbours as well as terrorists. Time has come that we should not only break the diplomatic relation with Pakistan but take recourse to other options available in accordance with the provisions of internal law. But breaking Pakistan as a Nation is not an acceptable proposition. It is against the principles of international law as well as Geneva Convention. Pakistan has a right to remain as a Nation but it does not have a right not to allow others to live like this. A happy, prosperous, peaceful and stable democratic Pakistan is as important for India as it is for an average and common Pakistanis.

DO WE NEED NEW INTERNATIONAL CURRENCY?

ARCHITECTS OF CHANGE OR STATUS QUO?

The World economic crisis is not a fiction but a reality now, which everyone including Americans has accepted it in the present form. Every crisis has to be faced and solutions thereof have to be explored. The great depression of 1930s and subsequent the 2nd World War had plummeted the world economy into bottomless nadir. In order to explore the ways and means to tackle it, the Bretto-Wood conference was held.(‘Bretton Wood system, 1944’ of monetary management came into being after a meeting attended by 730 delegates from 44 allied Nations who gathered in Mount Washington Hotel in Bretton wood, New Hampshire on 22nd July, 1944.
The agreement reached therein led to establishment of two important financial institutions viz IMF and IBRD. This ‘duo’ played very important roles with respect to economic and financial order of the world thereafter. Although, this system sought to establish a just and equitable global financial order, it was hijacked by US and some European countries right from the outset. The IMF and IBRD (it later became 5th Wing of World Bank) failed to serve the interests of the entire globe, especially poor and developing nations. The succession list of Managing Directors suggests that no Asian has ever been made MD of IMF. These figure suggests that how the IMF is working and how is the discrepancy.)
Although it was not a grand success, it ushered in a new era of global financial order. Keynes, the famous economist on the name of which the Keynesian theory is named, has suggested creation of a global reserve currency called ‘Bancor’ whose value was to be determined by a basket of about 30 commodities including gold. The aim was to protect the global currency against any vulnerability to vicissitudes of any single currency. This arrangement went on smoothly till 1971, but after US-Vietnam war when Americans were under tremendous financial chaos, the system was overturned and after that gradually US dollars assumed the role of global currency, though it was officially never announced or accepted like this. Till then US dollar is the hard global currency and according to information available as many 2/3rd of the official foreign exchange reserves of national governments are in dollars.
So far as the ongoing financial meltdown is concerned, it is assuming alarming proportions globally. World leaders may accept it or not but in terms of its magnitude, it is not less than the great depression of 1930s. Economists and financial experts may call it with different nomenclature, some experts call it economic tsunami and other economic slow or meltdown, but the after-effects and pains emanating from it, does not seem different owing to this different nomenclature. It would however be financially naive to prescribe remedies for what had happened, because, it is easy to write ‘prescription in retrospection’. But certainly, this does not mean that no inference is drawn from this ‘economic catastrophe’.
It would be however be wastage of time to further analyse the causes and circumstances which led to this fiasco, but it would be great injustice to the economic history also, if some glaring aberrations and maladies of this financial order are not enunciated and diagnosed. ‘Crisis is the engine of change’; therefore, this crisis would also bring about changes in the global financial order, an order which came into existence after ‘Bretton-wood conference, It is therefore; when the global economy is facing the threat of recession and global financial order has failed, the demands are being made not only by the leaders of the developing nations but also by developed nations like UK and France to change the global financial order.
LONDON SUMMIT- G-20- The summit which was held in London to discuss the affects of aftermath of world economic crisis and steps to tackle it, many people called it as the 2nd Bretton-Wood conference and expectations were soaring in hype. There was euphoria all around but it also burst like the ‘housing bubble’ which was precursor of the ongoing crisis. The world leaders specially the members of G-7 like Britain, Germany, France and America were vertically divided. Germany and France were of the opinion that the screws of financial institutions should be further tightened because what they thought, and to some extent they are correct also, that the ‘excessive financial leverage’ and ‘bottomless greet’ of these institutions are the root cause this crisis. USA and UK on the other hand, were averse to it and pleaded that tightening of screws would mean reversal of process of free market economy which is the basic of the capitalist economy. Anyway, the latter prevailed and under their pressure nothing tangible could emerge out of this much published and hyped summit. Well it was not a failure too.
ISSUES RAISED AND DECISIONS TAKEN IN LONDON G-20 SUMMIT-
1. It was decided that 1.1 trillion dollar would be pledged to aid the ailing world economy in order to revive it. This measure was bitterly opposed by countries like France and Germany.
2. The member nations agreed to triple the existing resource of IMF from 250 billion USD to 750 billion USD.

3. But the most important issue which was raised in this summit was the issue of‘NEW INTERNATIONAL CURRENCY’ china had raised this issue well before the summit could begin in April, 2009. In fact the governor of people’ bank of china Zhou Xioachun had raise the issue that the world now requires a new globally accepted new international currency. China wants that the USD be replaced by Special drawing rights (SDRs). It is pertinent to mention here that USD has never been officially accepted as world currency and in Bretton-Wood conference it was agreed upon that USD would be
This demand of china caused a stir in the world politico-economy because it is nothing short of determined challenge to the established financial hegemony of Americans over the world. USA was quick to respond and rejected this proposal out rightly. But this demand was again raised by china in the summit and found support of countries like India, Russia, and Brazil etc.
USA, in a smart manoeuvre, formed an alliance with China and termed it G-2. USA with sky soaring public debt can hardly afford to antagonise Asian dragon. China with a huge FOREX of more than 2 trillion USD is a power to reckon with. It has having 1.1 trillion USD worth US treasury bills and China has repeatedly asked the Obama administration to take guarantee of these bills, a request which is of much humiliation for Americans. It is just like a situation when a money lender comes to your house and seeks guarantee of the loan he had given to you.
Under the prevailing circumstances the US government or for that matter the world financial order cannot defer this demand for infinite period of time.
Many countries and many respectable economists are of the opinion that USA has been printing dollars to pay off its debts in tern causing inflationary trends across the globe. After all the worst ever crisis did originate in USA and being exported to the rest of world including the poor Africans which have yet to taste the fruits of prosperity. This unfettered financial regime must go and be replaced by a universally accepted and more transparent convertible global currency so that the monopolistic and hegemonic US dollar era come to an end. This would be perhaps the best achievement we could have in this ‘financial tsunami’




SUGGESTED CHANGES IN PROPOSED NEW GLOBAL FINACIAL ORDER (PNGFO)-Now the wheel has turned and no one can prevent change of guard. Following changes can be made so that the PNGFO fulfils aspirations of billions of under-nourished and starved people across the world-
1. IMF and World Bank’s functioning should be overhauled to make them more democratic. Voting rights of member countries should be changed and ‘bossism’ of west should go. ‘Each Nation equal vote’ theory should be enshrined into.
2. Appointments in IMF especially on the post of Managing Director (MD) should be made in a more transparent manner so that poor nations should also get a ‘comfortable say’. The system of nomination to President of World Bank by US President should be done away with.
3. World Bank and its different organisations should also undergo radical changes. The basis of percentage of voting in World Bank should be changed so that developing nations should have a ‘greater say’ in fund distribution and other administrative matters. In nut shell steps to evolve mechanism of, what Dr. Man Mohan Singh says ‘substantial increase in multilateral institutional funding of economies’ should be taken.
4. Some short of ‘global financial regulatory body’ may be set up to ensure proper monitoring of global monetary health and to ‘inject curative drugs’ when necessary. The fate of global market can no longer be left in the hands of elements of ‘excessive financial leverage enjoyed by greedy speculators and fund managers.’
5. United Bank of Switzerland (UBS) or Swiss Bank has been depository of hundreds of trillions dollars from across the world. Corrupt politicians and big business men have used ‘Banking Act, 1934 of Switzerland’ in their favour, because this law enables this Bank to maintain secrecy with respect to money deposited into it. Tons of gold deposited during ‘Nazi’s Nuremberg trial’ can play vital role in tiding over this crisis. Time has come to amend or repeal this law altogether, so that the ‘rich men from poor nations’ cannot drain the wealth and make the citizen to suffer. According to data of Swiss Banking Association about 1456 billion dollar of Indians has been deposited in UBS; followed by Russia 470 billion USD, UK 390 b USD, Ukraine 100 billion USD, China 96 b USD.
6. Radical changes are required in WTO also. Protectionism and favouritism should be done away with. The present food crisis is likely to be metamorphosed into ‘global food crisis’ if not addressed to immediately. The ‘bio fuel’ and US role on this issue is going to create an unprecedented situation in the world very soon. It is allowed to ‘go unabated’ will be more devastating that this economic crisis also. The humanity has to decide that whether ‘vehicles would be allowed to move at the cost of poor man’s stomach’.
7. The unequal distribution of wealth and prosperity has resulted into creation of a number of economic blocks in the world. SAFTA, NAFTA, IBRA, ASEAN, SAARC, OPEC, OIC, EU etc are manifestations of growing tendencies of group-ism and bloc-ism, which ultimately are proving hindrance to free flow of trade and commerce, harming the world at last. If PNGFO addresses all such issues, such groups and blocs would render useless and prosperity would transcend to all sections and all territories across the globe.
8. If we see the graph (GDP of India, China, America etc), we find that the 16th, 17th and even 18th centuries were the time of India and China, the Asian giants. Hopefully, history would repeat itself and ‘this duo’ would occupy the driving seat of the future ‘International financial institutions’. Permanent membership in Security Council to countries like India, Brazil, Japan and Germany should be given so that this world forum may not arbitrarily be used in one country’s favour and against other.
9. The West’s honeymoon with ‘west type liberal and free economy and American type democracy’ seems to be on the verge of divorce, therefore; world is set to emerge with new set of ‘politico-strategic-economic ideologies’ based on weltgeist, which is more equitable and less discriminatory. Market is a good servant but bad master, therefore; regulation and restriction on servant is essential.
10. Prioritisation of development has to be rescheduled, after all in spite of all sorts of sky soaring achievements, Bread, Cloth and Shelter’ would remain on the top of the list. No civil society can afford to ignore the equitable distribution of ‘these basics’ otherwise, the social fabric will tatter like what is happening today.