EDITORIAL : THE NEW STRAITS TIMES, MALAYSIA

Buying more with less

1Malaysia Student Discount Card will do more than aid bookworms

DISCOUNT cards can be especially useful when one is subject to living on a tight budget and it is no secret that for most students making ends meet takes ingenuity. A failure to sustain himself frugally can be detrimental to the student's academic performance. Success, on the other hand, can lead to a lifetime of careful spending and financial security. For those living solely on government grants, bursaries, scholarships and loans, the need for relief from the daily juggling of limited funds can be acute. It would not be surprising, therefore, if the 1Malaysia Student Discount Card (KDS1M), a government effort to assist students further, is warmly welcomed. Covering every essential of a student's life from books to travel and food to lodging, discounts ranging from 5 to 60 per cent must surely happily stretch every ringgit in his shallow pockets.

To date 51 companies have signed up as participants and these discount cards will be distributed free to all the 1.5 million registered university students. There is also the possibility that it might be expanded to include foreigners studying in the country. Consequently, the outcome for the participating companies is a sizeable near-captive market, lucrative even when taking into account the discounts offered. It could also breed brand loyalties going beyond student days. In short, even while easing the economic constraints and limitations imposed by insufficient funds on poorer students, the KDS1M has the immense potential of expanding the economic pie. What is noteworthy here is that, unlike credit expansion, discount cards will not carry with it the negative outcome of bad debts. Instead, because it is based on prudent spending driven by discounted prices, the 1.5 million cards pouring into the market will increase consumption with much less attendant risk.

Some may think it an election gimmick, but in the West, student discounts are a norm, popular and depended upon to improve students' standard of living. Indeed, discounts either in the form of stamps and coupons are already very popular with the average consumer because it helps fill the shopping cart without busting the bank. So popular is this marketing tool, major supermarket and departmental store chains distribute discount information for free to households at least on a monthly basis and often delivered to the doorstep of every home. Obviously then, discounted prices in whatever form are proven to be an effective means to help reduce expenditure burdens on essential items and the not-so-essential. It must, too, help move products faster. The KDS1M will fit into this win-win pattern to improve and sustain the economy domestically.

EDITORIAL : THE DAILY TRIBUNE, THE PHILIPPINES

Noy, a danger to the country

Noynoy is really putting the country in serious harm’s way, what with his penchant for raising tensions with China, the latest being by running to the United States and announcing that he plans to ask the US to send spy planes to help the country in monitoring disputed areas in the South China Sea.

It is a really stupid move on Noynoy’s part, as even a moron can see that fires would be stoked again, when the best move, if a diplomatic solution is really being sought by the Noynoy administration, is not to create more tension between China and the Philippines.

The Palace, in defending the stupid move of Noynoy, claimed that the request for  P3C Orion spy planes from the US would be a way to enhance the country’s monitoring capabilities, with a presidential spokesman saying that the spy planes are merely for “monitoring and surveillance purposes.”

Spokesman Ricky Carandang was quoted as saying that the request for US spy planes should not be viewed by China as a form of aggression, and sought to downplay fears it could re-ignite tensions in the area.

“It is not inconsistent with our policy to de-escalate tensions in the area. First of all, it is only for surveillance and there is no armed component,” he said.

That’s really dumb. Even if it is argued that the unarmed  US spy planes are being requested for monitoring and surveillance purposes, as the Palace put it, what is the point of it all, since the country has no capability to do anything much even if Chinese patrol boats enter, with guns ablaze in Philippine waters and Chinese combat ready planes fly over the disputed waters?

What then is the use of the spy planes in the disputed islands even if such are for monitoring purposes then? For the US and the Noynoy administration to know just how many Chinese, Vietnamese and other claimants’ ships, patrol boats are in the shoal, or have passed through while counting the number of combat-ready aircraft that will be flying over the disputed islands?

Then what would be the next move of the Aquino administration and its military? Run to the US government to cry and complain that China and other claimant countries’ ships are in these disputed islands and later ask the US government for military action in defense of the Philippine claim?

If the war-freak Noynoy thinks that such a move from the US would drive the Chinese away from the disputed islands, he really should have another serious think coming.

And if Noynoy thinks that the US will engage China in a shooting war to defend the Philippines, he really should have his head examined--unless of course, the intent is to give the Philippines back to America, which he is slowly doing today.

The US has made known its position on the China-Philippines claims as it stated its neutrality in the long-running maritime dispute, despite offering to help boost the Philippines’ decrepit military forces. China has warned many times over that “external forces” should not get involved, although the US raised the hackles of China when the US stressed its military’s intent to “pivot” back to Asia, widely seen as a response to China’s growing military capabilities.

Still, for Noynoy to suddenly announce to the nation that he will be asking the US government for spy planes for monitoring and surveillance purposes, this must have been suggested by the US, which suggestion was quickly accepted by Amboy Noynoy.

It will be recalled that in August last year, the US Pacific Command was reported to have made an initial offer to deploy the P3C Orion spy planes to the Philippines and help monitor disputed areas in the South China Sea after China increased its presence and activities near Reed Bank, part of the western Philippines Palawan island group.

The Pentagon offered to share real-time surveillance data with the Philippines while seeking wider access to airfields in its former bases, which Noynoy readily granted, as even US nuclear warships have docked in Subic.

Noynoy loves to speak of defending the Philippine sovereignty, but he has virtually ceded that sovereignty to the United States, and is now openly inviting war in this country with China.

He has not only destroyed Philippine democratic institutions; he has even destroyed the entire country with his pulbura mentality.

EDITORIAL : THE GUARDIAN, UK

Financial scandal: Diamond's not for ever

What is taking shape this week is an argument that Britain should have had at least after the rescue of the banks in autumn 2008, if not long before that

Bob Diamond resigned on Tuesday as the head of Barclays Bank in an effort to begin drawing a line under the Libor-rigging scandal. That in itself is astonishing; the boss of a high-street bank slapped with a record fine for manipulating markets quitting not in apology or contrition but to stop the affair "damaging the franchise" of his company. In any case, the manoeuvre failed: his departure simply turned what is already one of the most remarkable corporate falls from grace in contemporary history into something still more spectacular.

Too bad for the executives at Barclays; but good news for the rest of the country. Because what is taking shape this week is an argument that Britain should have had at least after the rescue of the banks in autumn 2008, if not long before that: namely, a discussion of what kind and size and style of banking industry is right for Britain. Many heavyweight bankers, not to mention senior figures in politics and officialdom, doubtless want to duck this public conversation – and its fallout. Again: too bad. If Britain does not hold a democratic debate – however irksome or embarrassing – on how to make an over-powerful banking industry less dangerous and better suited to our needs, it runs a much higher risk of repeating the financial crisis.

Given the events of the past few days, it is remarkable to remember that the scandal uncovered last week, of bankers tampering with money-market rates to bolster their own profits and bonuses, has a lot further to run. For a start, London and New York regulators have made it clear that other institutions were involved – and they are investigating them. For another thing, there are now serious questions to be answered by central bankers and regulators on what they knew about the rigging – and whether they even encouraged it. The clear implication of the dossier published by Barclays is that senior figures of the Bank of England actually urged senior bankers on in their market distortions. Of course, Bank staff should be allowed to respond fully before we jump to any conclusions – but the explanations that Threadneedle Street (and indeed Whitehall) will have to make mount day by day. When he goes in front of the Treasury select committee this afternoon, Mr Diamond will doubtless be called upon to substantiate and elaborate on his accusations; indeed, he appears to be spoiling for the opportunity. Such details will be worth scrutinising; some are bound to provide valuable insights into the way banking is conducted in this country. But they need to be fitted into a template for discussion – not just pored over for an endless series of scapegoats. What is on trial here is not just a parade of bankers, no matter how senior, but an entire culture and the political and regulatory context it operated within.

When Britons were called on to hand over £20,000 each to rescue the finance industry, they did so on the pretext that a healthy, functioning banking system is in the nation's vital interest. Yet even after the crash, British banking has not been run in the public interest; it has carried on behaving in the same reckless manner as ever – only now with the explicit support and implicit subsidies of the state. And it has been allowed to do so by politicians of all major parties, who – with initiatives such as the Vickers commission – have sought simply to make it a little bit safer and a fraction less of a risk to the taxpayer. Successive prime ministers, including Gordon Brown and David Cameron, have granted the finance industry all the space it needs to make risky gambles, engage in multimillion-pound tax avoidance, and work against the wider public interest.

How that has happened and how it can be put right must be the subject of a Leveson-style public inquiry. Just like Leveson, this need not be long and drawn out; but it must be granted a wide remit, including an examination of the apparently toxic intimacy of politicians, regulators and financiers. Failure to hold such an inquiry – and to follow through on its implications – will probably cost Britain much more in the long run.

Health service: surviving a lost decade

The coalition squandered all its energy on an irrelevant bill which was being rewritten all the way to the statute book

Just how frightening is the prognosis for the NHS? David Cameron's pre-election posters promised it would be shielded from the coming cuts, but if anyone believed that then, they are unlikely to believe it today. Doctors are striking, there are ominous signs of patients waiting longer for treatment, and one London trust has gone into administration – while Whitehall mutters that dozens more may follow.

There have been rows about whether the PM has broken his pledge not to cut NHS spending, with claims that it is actually falling after various adjustments are made. These rows miss the point. It matters not whether he has (just) cut spending or has – as he claims – (just) increased it. The substantial fact is that he has essentially frozen cash. Since the service's creation in 1948, an ageing population has incurred rising costs, necessitating average annual funding rises of 4%. Under the coalition, society's greying continues apace, but the NHS is being asked to muddle through on 0%. In a report on Wednesday, the Nuffield Trust and the IFS run the ruler over the numbers, and argue that austerity will not be a passing four-year famine but will persist for a decade. Be generous and assume that Mr Cameron can produce significant savings from social security, and assume, too, that health can remain a priority over things like transport and policing which have been hit much harder up to now. Even then, the NHS can expect a mere trickle of cash – running at half the traditional rate of increase – once the taps do eventually get switched back on.

That implies that things can't go on as they are, and – on cue – a bright young man from a rightwing thinktank popped up at the launch to say it was time to talk about stepping up private payments. But it is far from obvious how they would help. Charge for GP consultations, and some patients will postpone a checkup until costlier and more complex interventions are needed; around the world, healthcare systems are facing similar pressures almost regardless of the mix of tax, charges, social and private insurance which supplies the finance. For years, experts have said the only route to serious savings is shifting care from wards into the community, by chivvying GPs into focusing on reducing hospital admissions and then closing wards and even whole infirmaries which become surplus to requirements.

It is a politically poisonous agenda, but also the only way to sustain a decent service to the patient within the available funds. What a pity, then, that – instead of preparing the ground for the tricky debate that is required – the coalition squandered all its energy on an irrelevant bill which was being rewritten all the way to the statute book, and which creates utter confusion about who is responsible for taking the tough decisions ahead.

In praise of … Harry Belafonte

His is a life full enough even without his involvement in the civil rights movement with Eleanor Roosevelt, Bobby Kennedy and Martin Luther King

Today's politically engaged Hollywood celebrity picks and chooses a cause, one eye on a country far away enough to wax indignant about, the other eye on the next contract. Not so Harry Belafonte. The man has as much fire in his belly at the age of 84 as he had as a youth from Harlem. The difference is that, as he says, he was an activist who became an artist, rather than the other way round. It is not just that Belafonte's memoir My Song is impressive. Belafonte helped introduce calypso to mainstream America. Along with Sidney Poitier and Sammy Davis Jr, Belafonte broke the taboos on roles for black actors. His is a life full enough even without his involvement in the civil rights movement with Eleanor Roosevelt, Bobby Kennedy and Martin Luther King. Today Belafonte speaks with moral authority. He has not turned his brand into a lucrative foundation – and when he criticises Barack Obama for raising false hopes, he stings.

EDITORIAL : THE GLOBAL TIMES, CHINA

China faces long-term regional annoyances


Philippine President Benigno Aquino III said Monday he may ask the US to deploy spy planes over the South China Sea to help monitor disputed waters in the region. The US Department of State did not say whether the US will respond to the request.

The Philippines suffered a setback during the Huangyan Island conflict with China, but it will not back down on the issue. China will be pestered by the Philippines, Vietnam and other countries over the South China Sea for a long time.

The world has entered a stage in which small countries can make trouble for big powers. If these island disputes had happened in imperial times, they would have been handled in a much easier way. China may have many ways to teach the Philippines a lesson, but we must not easily use them.

This does not mean China is showing weakness. The US, the most powerful country in the world, has the strength to strike those countries it deems as "evil," but it has to seek approval from the international community.

The Philippines and Vietnam do deserve to be punished. If they go to extremes in their provocations against China, it is likely that they will finally be punished through means including military strikes. However, China definitely will be very cautious in making such decisions. 

The world today is very complicated, and the international environment is undergoing profound changes. China has many strategic opportunities, but is also faced with many dilemmas. 

China is a country with great development potential. This determines not only China's strategic potential, but also the current international system's continued restraint of China.

The public is becoming increasingly confused over what China's most pressing issues are. Chinese frictions with neighboring countries have been a major focus of foreign affairs in recent years, but such frictions do not pose a strategic threat to China. 

The key point that can decide China's future is obviously not the same as what public opinion is most concerned about.

A country should clarify its thoughts and firmly follow them, but this is easier said than done, because its development will face constant domestic and foreign disturbances.

The Philippines and Vietnam are obviously disturbing China. They are not part of China's international political ambitions, but China must not let their disturbance go unchecked. 

The right policy might be to tell them our bottom line and avoid a war of words with them, but teach them an unforgettable lesson when it is time to hit back.

EDITORIAL : THE DAILY YOMIURI, JAPAN

DPJ's inconsistencies end with departure of Ozawa bloc

The Yomiuri Shimbun

The Democratic Party of Japan has split. While calling for complete solidarity on the surface, the ruling party has consistently faced internal problems. We can say the party's internal contradictions have ended with a bang.

Former DPJ President Ichiro Ozawa and 49 others from both houses of the Diet submitted letters of resignation to the party's executive branch. They are expected to launch a new party sometime this week at the earliest.

The 50 members comprise 38 from the House of Representatives and 12 from the House of Councillors. In the lower house, the group will become the third largest force as the number exceeds that of New Komeito. Ozawa is reportedly considering the creation of a united parliamentary group with other parties including Kizuna Party, which was formed by lawmakers who left the DPJ in December last year.

As Prime Minister Yoshihiko Noda's administration will barely hold onto its majority in the lower house, its steering of Diet business must become more unstable and severe. Among remaining party members, some might quit depending on the situation.

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Stronger ties with opposition

However, with the departure of hard-line rebel lawmakers, the sense of unity in the DPJ may grow. This might make policy decisions smoother.

Concerning bills on the integrated reform of the social security and tax systems, Noda emphasized afresh, "I'll fulfill my responsibility by surely passing them into law."

From now on, the DPJ needs to cooperate much more with the Liberal Democratic Party and Komeito to ensure early passage of the reform bills and lower house electoral system reform.

In regard to the new party he is likely to launch, Ozawa said, "We'll return to our starting point of regime change and offer a political system in which the people will have a choice." He likely will stress his "anti-consumption tax hike" slogan and try to tie up with regional political parties. However, there are no prospects he will be successful.

In various opinion polls, respondents overwhelmingly said they "don't expect much from a new party envisaged by Ozawa." Osaka Ishin no Kai (Osaka restoration group) and Tokyo Gov. Shintaro Ishihara also say they will not cooperate with Ozawa's new party.

About two-thirds of the 50 members who quit the DPJ have been elected only once--they are generally called "Ozawa kids" and have weak electoral power bases.

They were forced to resign after losing out in an intraparty policy conflict, but they seem to believe they can survive in a new party when the next elections are held for the lower and upper houses.

The DPJ split reveals the risk of a ruling party acting as "mutual aid society for elections" after gathering non-LDP forces without first unifying philosophies and policies.

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Pros and cons of having Ozawa

The DPJ merged with the Liberal Party led by Ozawa in September 2003 in preparation for a lower house election, without holding talks on coordinating policies.

Later, Ozawa rebuilt relations with labor unions and regional organizations to ensure victory in upcoming elections. It is true he played an important role in the party taking over the reins of government in 2009.

However, the party had to deal with lawmakers Ozawa gathered around him.

Ozawa's signature political maneuver--acting arbitrarily without consultation--has never changed, creating a pointless confrontation between "pro-Ozawa" and "anti-Ozawa" forces within the party.

It should not be forgotten that the party's manifesto for the 2009 lower house election created under Ozawa's initiative lacked revenue sources and this "negative legacy" has been the cause of constant criticism in recent years.

(From The Yomiuri Shimbun, July 3, 2012)

(Jul. 4, 2012)

Efforts must be made to prepare for rolling blackouts

The Yomiuri Shimbun

The No. 3 reactor at Kansai Electric Power Co.'s Oi nuclear power station in Fukui Prefecture has been restarted at long last.

This marked an end to a shutdown of all nuclear reactors whose operation had been suspended for regular checks. They had not been allowed to resume operations in light of the crisis at Tokyo Electric Power Co.'s Fukushima No. 1 nuclear power plant in the aftermath of the March 11, 2011, disaster.

Prime Minister Yoshihiko Noda and his Cabinet made a political decision to restart the Nos. 3 and 4 reactors at the Oi plant, ending an approximately two-month complete hiatus in the operation of the nation's nuclear reactors. This can be highly applauded.

The No. 3 reactor will be able to resume power generation Wednesday if its operation goes smoothly. It is scheduled to be put into full operation Sunday, and the No. 4 reactor is targeted for full operation late this month. Safety must be the top priority in operations.

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Power crisis may be avoided

The restart of the two reactors at the Oi plant may make it possible to avoid a power shortage crisis in the Kansai region. But it is too early to relax.

As a government measure to deal with a power supply shortage, requests for power saving started Monday in areas served by nine utilities. Okinawa Electric Power Co. was not affected. The first day was marked by sweltering midsummer-like heat in western Japan and elsewhere.

When the No. 3 reactor begins full operation, the government plans to lower the saving target from 15 percent to 10 percent. The target is expected to be reexamined after the No. 4 reactor resumes operation.

But it is feared that a surplus supply capacity of 3 percent, which is considered the minimum rate to prevent blackouts, cannot be secured in Kansai. So a large cut in the saving target should be avoided.

Thermal power plants have been overworked to secure a stable power supply, heightening their failure risk. In fact, one of Kansai Electric Power Co.'s thermal power generators in Hyogo Prefecture experienced trouble that forced it to halt operations on Monday.

In the service areas of Kansai, Kyushu, Hokkaido and Shikoku electric power companies, where the demand-supply situation is especially tight, preparations are being made for rolling blackouts. This is a reasonable step.

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Everyone must pitch in

We urge the people in these areas to pay careful attention to the government's daily power shortage forecasts for the following day as well as to urgent information transmitted via mobile phones and other devices on the tight demand-supply situation.

Blackouts threaten the lives of people requiring the use of medical equipment. It is essential to make power-saving efforts as much as possible without thinking, "Someone else will do it."

It will be essential to restart nuclear reactors following those at Oi plant after their safety can be confirmed and bolster the nation's power supply system. To realize this, it is indispensable to restore the trust of the public in areas where the nuclear plants are located.

It is problematic that when an alarm rang following the lowering of cooling water levels at the Oi plant on June 19, the announcement of the trouble was delayed. Quick public disclosure is indispensable to building confidence.

A new nuclear regulatory commission will confirm the safety of nuclear plant operations before reactors are restarted.

The government must urgently establish a new nuclear watchdog system while going ahead with selection of commission members.

(From The Yomiuri Shimbun, July 3, 2012)

(Jul. 4, 2012)

EDITORIAL : THE DAILY MIRROR, SRILANKA

Neck deep in debt, Lanka faces worst drought


Despite all the boasting and high growth rates projected by the government’s economic pundits, Sri Lanka’s foreign debt in 2011 had soared to 24.8 billion dollars compared to 9 billion dollars in 2000 while debt servicing last year amounted to as much as 12.1 per cent.

With Sri Lanka neck-deep in debt and generations to come burdened with the repayment, the country has been hit by the worst drought in recent history with the Meteorological Department warning there may be no heavy rain till October in some districts.        
Tens of thousands of acres of crops have been destroyed in the aftermath of a disastrous paddy harvest where about 300,000 tonnes of paddy were destroyed because farmers did not get a crop of rice and were pushed into the mud hole of paupers. It is a tragedy and a crime because agriculture and farmers have been part of our civilisation for centuries. Those days are gone with the wind.

President Mahinda Rajapaksa has ordered that compensation be paid to tens of thousands of farmers who are languishing in varying degrees of degradation and destitution. A committee comprising officials from several ministries has been appointed to work out this scheme, but opposition critics and independent analysts fear that the plague of rampant corruption and fraud may affect this scheme also and millions of rupees might go to racketeers instead of farmers. The main opposition UNP also said on Monday the Rs.100,000 compensation being given to farmer families amounted to bribes to get their votes at the upcoming provincial elections.

Once this drought crisis is overcome, the government also needs to reconsider the whole process of agriculture and turn to bio farming instead of the current practice of using huge amounts of chemical fertilizers, weedicides and pesticides. Research shows that even the ground water in the main rice-producing areas has been polluted by the excessive use of agrochemicals, and thousands of people are suffering from kidney ailments. Bio farming may be more difficult but it is definitely the best way, and farmers need to be encouraged by giving them incentives.

With hydro-power and drinking-water reservoirs also drying up due to the prolonged drought, Sri Lanka again faces the dreaded power cuts and water cuts. The Ceylon Electricity Board said last week more than 80 per cent of power supplies was coming from highly-expensive thermal power sources, and if the drought continued, the CEB would have no option but to impose power cuts.

The National Water Supply and Drainage Board has also warned of water cuts. Whoever may have blundered and whoever is to be blamed, the people need to respond in a patriotic way by reducing the use of electricity and tap water. If every family could save a few units every month, the total would be enough to have flood lights on a mighty ocean.

EDITORIAL : THE HINDU, INDIA

Theatre of the absurd

In ordering the deletion of certain cartoons and words from a number of social and political science school textbooks, the committee constituted by the National Council for Educational Research and Training appears to have followed the line of least resistance. First the two cartoons that have generated political controversies were promptly sent to the trash tray; and then, many, many more. With a mandate to review the textbooks and identify educationally inappropriate material, the panel headed by S.K. Thorat was expected to take a detailed look at all visual material with the help of subject experts. But the number of cartoons erased and the flimsy and even bizarre reasons given mark the whole exercise as politically coloured from beginning to end. Many of the changes seem to have been recommended with the interest of the political and bureaucratic classes in mind, and not on pedagogic grounds. Some cartoons are to be removed because they convey a “negative message” about politicians and bureaucrats, others because they are politically “sensitive”. A few cartoons were seen as too “ambiguous.” Surely, these cannot be grounds for exclusion while preparing instruction material to develop critical thinking among students in Classes XI and XII. Indeed, going by the suggested deletions, the “politically sensitive” argument looks tailor-made to ensure the removal of cartoons seen as causing offence to the Nehru-Gandhi family.

As the dissenting member of the committee M.S.S. Pandian sagely notes, what is perceived as “politically incorrect” need not be “educationally inappropriate” for students being initiated into critical thinking. The National Curriculum Framework from which the current textbooks sprang broke new ground precisely because they sought to encourage young learners to ask questions for which there may not be a single correct answer. True, the authors of the textbook may have gone overboard here and there; a sensible, nuanced review could have easily set things right. But the deletions now being ordered defy all reason and commonsense. For example, an American cartoon in which the Republican and Democratic parties are shown as an elephant and donkey is to be dropped because “politicians and institutions are represented as animals.” This despite the fact that the two animals are party mascots! Agreed, there is nothing sacrosanct about the textbooks and the cartoons they carry. Other cartoons and other textbooks could have served the pedagogic purpose just as well. But inclusion and exclusion of material in textbooks cannot be carried out, as the Thorat committee has done, keeping in mind narrowly defined political sensitivities and imaginary community sensibilities. It will be a matter of national shame if its recommended deletions are accepted by the NCERT.

Return of the old guard

Enrique Peña Nieto’s win in Mexico’s presidential polls marks the return of the Institutional Revolutionary Party (PRI), which enjoyed seven decades of power until 2000. Breaking the stranglehold of the drug mafia and crime syndicates which are said to have claimed as many as 60,000 lives in recent years would be among the most formidable challenges facing Mr. Peña Nieto, who will take charge only in December. In a hotly debated campaign, the outgoing conservative party, PAN, was not in the reckoning, largely due to President Felipe Calderón’s track record on tackling crime and his failure to enact economic, energy and education reforms. On the other hand, second-time contestant Andrés Manuel López Obrador of the leftist Party of Democratic Revolution merely managed to narrow the lead Mr. Peña Nieto enjoyed earlier in the opinion polls. The campaign acquired immense momentum over the past few months also on account of the surge in popularity of the pro-democracy student-led Yo Soy 132 movement. The PRI’s controversial nexus with a prominent media group lent the poll process additional sting. The pervasive resort to violence and intimidation during previous polls led Mexico’s election authority this time to seek a commitment from political parties to honour the popular verdict and to denounce violence during the electoral process.

Despite the return of the ‘old guard’ that the PRI represents, multi-party democracy in Mexico is here to stay. Presented as the PRI’s new face during the election campaign, Mr. Peña Nieto, governor of the State of Mexico until last year, knows only too well the reasons his country has been punching below its economic weight in the region. The introduction of growth inducing measures might well be the answer to the gross inequalities which are a fact of life in the country. The incoming President would draw much comfort and courage from the fact that his country weathered the aftermath of the 2008 global financial and economic crisis better than its mighty northern neighbour, the United States, even as it was battling the H1N1 flu pandemic. Mr. Peña Nieto’s ultimate triumph, however, would be winning the war on drugs that his predecessor never really waged. But this will require greater cooperation and sensitivity on the part of the U.S., where the lack of control on deadly assault weapons, not to speak of the demand for drugs, fuels the violence that has exacted such a heavy toll on ordinary Mexicans from all walks of life.

EDITORIAL : THE DAWN, PAKISTAN

Vulnerable to fraud

THE healthcare fraud in the US involving the British drug-maker GlaxoSmithKline places before Pakistan a worrying picture of its own pharmaceutical industry. While the Glaxo fraud vindicates the worldwide scepticism regarding the operating of profitable pharmaceutical businesses, in the Pakistani context the concern runs much deeper. As the culture of not questioning the quality and purpose of medicines persists here, Pakistanis are dangerously exposed and liable to submit to unscrupulous agents of the market who are at their most efficient in places where public awareness and resistance are low.

GSK pleaded guilty to misdemeanour in the biggest such case in US history and agreed on a settlement. It will have to cough up $3bn — $1bn in criminal fines and $2bn in civil fines. The agreement “would resolve allegations that the British drug-maker broke US laws in the marketing of several pharmaceuticals”. The company was further accused of failing to provide the concerned US department with safety data about a drug and of underpaying money owed to Medicaid, the healthcare programme for the poor. Compare this with Pakistan where pharmaceutical companies have few checks to contend with. In the US case, doctors were bribed with spa treatments and meals for endorsing illegal drugs. This type of unfortunate marketing can almost be described as the foundation stone of the strategy adopted by pharmaceuticals that operate in Pakistan. There is no accountability of doctors who may not always have a good medical reason for prescribing or promoting a certain drug. Against a developed American system that is on trial for its failure to effectively check malpractice, Pakistan is still struggling to create a beginner’s guide on hauling up drug-makers whose products are questionable. One has only to recall the tragic deaths of 130 heart patients who were administered defective medicine by the Punjab Institute of Cardiology only a few months ago to gauge how grave the situation is.

The fake drugs racket thrives in a set-up where raw material quotas for qualified manufacturers are not that easy to come by and drug-makers are loosely regulated. Unhealthy marketing practices are routine with the federal government and provinces still attempting to define jurisdiction and responsibilities. Theoretically, the enforcement of many of the drug laws has been devolved to the provinces. But practically, there is utter confusion, which, among other things, makes the proposed Drug Regulatory Agency a distant dream. Given the examples at home and abroad, it is necessary to sound the alarm bells. An evaluation of the way medicines are manufactured, marketed and distributed is urgently needed. But can that happen without more clarity on devolution?

Lower inflation

THE annual inflation number has been released, and it is a moment for cautious optimism — with the emphasis being on caution. If official statistics are to be believed — and there is some concern that technical changes made this fiscal year now understate price increases — the consumer price index stood at 11 per cent this year, down from 13.7 per cent in 2010-11. Given the inflation in the mid-20s that persisted in the current government’s first year in office, the administration should be credited for bringing an alarmingly high number broadly under control. And in recent months it has successfully passed on reductions in global commodity prices to consumers. But the achievement also needs to be put into perspective. For one, much of the decline in inflation is due to global price declines, especially those of oil and certain food items, rather than improvements on the domestic front. And inflation still remains stubbornly in the double digits for the fifth year running, a reality borne out by the common complaint among citizens that even basic needs, including food, fuel, electricity and transport, remain hard to meet.

Even more worrying is the persistence of the fundamental issues behind this problem, which remain in place and are getting worse. The State Bank recently pointed out that inflation remains high because of continued, and continually increasing, government borrowing, itself a function of the growing fiscal deficit. And the new budget doesn’t inspire confidence that the required belt-tightening will take place, at least not before the next elections. The recent expansion of the cabinet and the hike in salaries and pensions of government employees are just a couple of indications of how politics continues to trump sound economic management, even as the fiscal deficit for 2011-12 will likely come in at nearly eight per cent. Add to that a low tax-to-GDP ratio, electricity and other subsidies, and the losses racked up by public-sector enterprises, as well as a precarious external accounts position that is weakening the rupee and making imports more expensive, and the outlook for inflation doesn’t look bright.

ATM charges

THE Competition Commission of Pakistan has found that the practice of charging the same rate (Rs15 per transaction) by 28 different banks for cash withdrawals by customers of rival banks from their ATMs represents an example of price collusion and an act of a cartel. The banks in question are members of an ATM network ‘switch’, 1-Link, itself a guarantee limited company created and owned by 11 of the member banks. 1-Link is one of two such ATM networks operating in the country. Having found 1-Link and its members guilty, the commission has fined all the offending parties Rs770m in total.

The problems with ATMs in Pakistan have been commonplace for some years now, with network outages and frequent shortages of cash being some of the commonly highlighted ones. Additionally, security problems in some places mean customers often have to worry when they go to withdraw funds from their accounts. While the banks and 1-Link claim that the CCP has wrongly applied competition law in fining them, customers may rightly wonder about the extra Rs15 they are charged every time they use an ATM of another bank — are they getting a service that is reasonably safe and efficient at a competitive price? While the State Bank of Pakistan has worked towards keeping the charges by networks such as 1-Link and its client banks in check and there has been some effort at improving the customer experience at ATMs — ensuring they are stocked with cash over weekends and holidays, providing brightly lit and more secure spaces, etc — there is still a long way to go. More broadly, as the CCP fine indicates, there are all manner of small fees and charges that banks bill customers in the hope they won’t notice or mind. More vigilance by the State Bank and entities like the CCP will help.

EDITORIAL : THE DAILY STAR, BANGLADESH

When public property becomes political

Public welfare is sidelined

The wholesale grabbing of government-owned land and turning those into so-called political establishments and business ventures is in full swing throughout the capital city. According to reports published in a national daily, the extent of land grabbing extends from one end of the city to the other. The erection of illegal structures on land adjacent to as many as 25 government institutions by some ruling-party affiliated wings gives some idea of the current trend.

Had these so called 'offices' purporting to belong to the various students and labour wings of the ruling party actually carried out some official function, then there would be no brows raised. Yet, as investigative journalism has revealed, the most preferred manner of grabbing government land has been to use the signboard of one or other such body. To add salt to injury, the areas which have witnessed the proliferation of these new offices and establishments have been accompanied by a rise in crime.

The concerned departments or ministries whose land is being acquired unlawfully remain silent spectators to this phenomenon. Even if steps are taken, the powers that be appear helpless in the face of stiff resistance put up by party cadres. One of the best examples of such a scenario is what we are witnessing with the case of LGED's directive to remove all illegal roadside establishments put up in the name of political organs of the ruling party and other and makeshift shops by mid-day, Tuesday. When authorities went to demolish such structures in the Mohakhali area, they ran into stiff resistance of party cadres of a particular ward and demolition could not take place in that Ward. Are we then to assume that a Minister, one who is said to head a particular youth wing is helpless in the face of opposition at street level? Needless to say, such a breakdown in the chain of command within the ruling party does not bode well for the country and order must be restored for the common good.

Profit mongering

Mere words will not work

The commerce minister deserves our thanks. At least he had the moral courage to admit that the prices of essential have spiraled up ahead of the forthcoming month of Ramadan, unlike his predecessor who was all the time convinced that the price was always under control. And there is no doubt, as the minister says, the rise is totally unjustified. Well there is the excuse of flood that will come in handy for those dealers who are constantly on the lookout for natural calamities or religious festivals to exploit the public and make a windfall out of those.

It is only in Bangladesh that prices of essentials are not governed by market laws but by the caprice and whims of a syndicate on whom so far, the governments have had no control. How does one explain the spurt in cost of essentials without any genuine reasons? And this has been happening before every Ramadan While nobody can take issue with the legitimate rise in prices, the problem with our market is that the rise has a ratchet effect; it never comes down.

Since the commerce ministry is sanguine that the rise is aberrant and has decided to deploy monitoring teams to detect the persons responsible for the machination, one would hope that the deviants would be detected and made examples of. Having said that we want to emphasise the fact that any measure, which is abnormal or distorts the system would be more likely to fail. Side by side monitoring, and that has not borne much fruit in the past because of laxity in penalizing the offenders, measures must be set afoot that address the deliberate distortion of prices.

As it is, the profit margin retained by the sellers at various levels is much too high, in some cases more than 100 percent the original cost. This is what the government must also tackle seriously. What must also be addressed are other allied factors that add to the cost at the consumer level like illegal tolls the carriers have to pay from origin to the retailers.