News Wrap
AGD

As Union Railway Minister, Ms Mamata Banerjee of the Trinamool Congress, had diverted allocations from the railway budget, to lay hundreds of kilometres of tracks in her state West Bengal, for which there was no provision. In the railway budget for 2011-12, the then minister had claimed 95 new lines including extensions would be constructed as per the list tabled in parliament, among the budget documents. After approval from parliament, the minister used the allocation to construct rail lines in some other places. There has been a diversion of over 1300 km of rail lines without parliament’s permission, most of which were in Eastern Railway, and covered West Bengal. The cost of the diverted expenditure for Indian Railways is around Rs 10,568 crore, or about 10% of the railway’s annual expenditure budget. From the usual pace of adding 200 km of rail lines every year, the minister had announced 1700 km of new rail lines for 2010-11 and 2011-12. While the projects for which parliament granted approval were regionally diversified, the money was used to build lines where the Trinamool Congress party has political interests. Scarcely any techno-economic feasibility studies were carried out. Of the 53 projects where approvals have been misused, 39 of them are in West Bengal. Outside West Bengal, two projects which have destinations different from Parliament’s approval, are in Raebareilly and Amethi in Uttar Pradesh. New tracks have been laid without parliament’s permission. Constructing a new line is a separate head of expenditure for which it must go to parliament. There is a list of 94 projects (2010-11) and 95 projects (2011-12), including gauge conversion and doubling of rail tracks, which were diverted to connect other pairs of stations.

Film Fury
During September 2012, Islamic countries across the globe, staged angry demonstrations, and vented their fury against a film made in USA, that denigrates the prophet Mohammed. Days of protests against the film saw crowds gather outside US and other western embassies from Asia to the Middle East and Africa. In Benghazi, the US ambassador in Libya, Christopher Stevens was killed, along with three members of his staff, in an attack on the US consulate. The violence coincided with the 11th anniversary of the terrorist attacks of September 11, 2011; and was provoked by Egyptian news reports about a 14-minute trailer for the video called ‘‘Innocence of Muslims’’, that was released on the Web. The amateurish American made video, opens with scenes of Egyptian security forces standing idle as Muslims pillage and burn the homes of Egyptian Christians. There are insulting cartoon scenes depicting the Prophet. The video gained international attention when a Florida Pastor began promoting it, alongwith his own proclamation of September 11, as ‘‘International Judge Mohammad Day’’.

Shiploads of Weapons for Syria
Libyan ships carrying large consignment of weapons for Syria are docked in Turkey. Most of the weapons cargo is making its way to Syrian rebels on the front line. On an average, each vessel carries 400 tons of weapons cargo, stretching from SAM-7 surface-to-air anti-aircraft missiles and Rocket Propelled Grenades (RPGs). The Free Syrian Army (FSA) is helping to move the shipments from the Turkish port of Iskendrun to the Syrian border. The papers are stamped by the port authority of Iskenderun. A row has been sparked between the FSA and the Muslim Brotherhood over the scale of the shipments and how it should be distributed. Earlier the lack of weapons and materials was holding back the ‘Syrian Revolution’ from success. The rebel’s gains have brought fresh infighting in their ranks, including a series of small clashes between units competing for weapons stores seized from the government. Insurgents fight over ideology, weapons and political influence.

Ordinances in Nepal
Nepal’s Constituent Assembly had failed to promulgate a new constitution, and dissolved itself. Keeping Ram Baran Yadav, the president, within a constitutional parameter, the Maoist Prime Minister Baburam Bhattarai has been running Nepal through ordinances. So far the President has withheld approval to ordinances forwarded by the cabinet. Bhattarai’s government is a conglomeration of Maoist and Madhesi parties. Key players like the Nepali Congress and the Communist Party of Nepal (United Marxist Leninist) have refused to participate.

The numbers of armed outfits in Nepal have significantly gone down from 108 groups in April 2011, to about ten active outfits in the Terai and eastern hills. Operations against the armed groups, internal rivalries in the outfits and talks with the government have resulted in armed groups laying down arms. The Nepalese government has classified the groups as ‘criminal’ and ‘political’. The capacity of prisons across Nepal is around 6000. Ever since the launching of operations against the armed rebels, the prisons are hosting 14000 inmates. Most of the outfits were engaged in extortions and forced donations, and in spreading terror through small arms.

Vietnam’s Economic Management
Ruled by communists since mid-1970s, Vietnam is suffering from inflation shocks. Consumers and employers have been shaken, contributing to widening social inequality and undermining confidence in the currency. The power struggle between Nguyen Tan Dung, the Prime Minister and his opponents have intensified as the economy has deteriorated. By Moody’s credit rating, Vietnam is lagging way behind neighbours like Thailand, Indonesia and Philippines. The recent arrest of bank chiefs, on suspicion of committing unspecified economic crime led to withdrawal of hundreds of millions of dollars from Asia Commercial Bank, one of Vietnam’s biggest non-state lenders. The gross domestic product has grown in 2012 at 4.4%, from a year earlier, well below the pre-economic crisis trend of more than 7%. Two state shipping groups, Vinashin and Vinalines, have collapsed under massive debt.

There is general lack of transparency, weak corporate governance, fraud, corruption and illegal trading. Corruption is benefiting state officials, provincial leaders and investors. Social disorder has risen, including violent clashes over land and illegal strikes, along with the slowing down of economic growth. Recently the communist party has wrested direct control of the anti-corruption steering committee, away from the prime minister, and re-established its own internal affairs department. The relationship between a secretive communist party and a capitalist economy is clouding recovery prospects, for the country of 91 million people. Hundreds of abandoned construction sites point to Vietnam’s sickly economy. State owned companies are stacked with friends and allies of the communist party hierarchy.

Frontier
Vol. 45, No. 21, Dec 2-8, 2012

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