Table of Contents
Import of dual-use tech from US:
Dual use, multiple benefits
* What is dual use tech? Technology that can be used for both military and civilian purpose
• US has eased controls on high-technology dual-use exports to India, granting exemption under the Strategic Trade Authorisation list
• India has been moved from STA 2 to STA 1 list 2016 – India designated as a Major Defence Partner of USA :-
• Sharing technology to the same level as its closest allies and partners
• Collaboration for defence co-production and co-development. Whether the US will give or deny another country , a technology that can be put to both military and civilian use depends on— 1. US national security 2. Recipient’s regional stability STA-1 and STA-2
• In 2011, as part of the export control reforms initiative, the US government came up with the concept of Strategic Trade Authorisation (STA) — a move towards a licence-free or license exemption regime.
• Two lists were created — STA-1 and STA-2 for allies and partners
• Countries that were not part of either list had to apply for a licence for every item on the dual-use items list. STA-1 – 36 countries NATO allies and bilateral treaty allies like Japan, South Korea, and Australia Their non-proliferation controls are considered to be the best in the world by USA. Licence-free access to almost 90% of dual-use technology, are eligible to import items that are controlled for reasons of national security, chemical or biological weapons, irrespective of whether the technology or item impacts regional stability or American national security. STA-2 – 8 countries* Albania, Hong Kong, Israel, Malta, Singapore, South Africa, and Taiwan. (India) They enjoy some form of licensing exemption, but cannot access dual-use items/technology that may impact regional stability, or contribute to nuclear non-proliferation. STA 1 countries are also part of the four multilateral export control regimes —
1. Nuclear Suppliers’ Group (NSG)
2. Missile Technology Control Regime (MTCR)
3. Australia Group
4. Wassenaar Arrangement
The fact that India is now part of STA-1, despite not being member of all four multilateral export control regimes, is a testament to its nonproliferation credentials. Q. India is NOT a part of which of the above?
▪ One of India’s key objectives in signing the civil nuclear deal 2008 was to gain access to high technology that it had been denied earlier.
▪ Membership of this elite club of US allies is expected to lead to greater hightechnology trade and commerce. The Indian high-tech industry could open up doors for both sales and manufacturing in India.
▪ According to US estimates, India’s not being part of STA-1 has resulted in a “lost opportunity” worth $10 billion since 2011.
What I saw in Pakistan
▪ International observers from the EU and Commonwealth.
▪ Volunteers of civil society – Free and Fair Election Network (FAFEN) and Trust for Democracy Education and Accountability S. Y. Quraishi – C.E.C. of India 2010-12
▪ He was part of Commonwealth Election Observers Group
▪ 15-members spent 12 days to observe events in the Pak. Elections The group met delegations from the leading political parties, civil society and the media to understand the pre-electoral environment, which was reported to point to a not-too-fair election Mainly, three things were cited:
1) Forcing of certain party leaders to return their tickets
2) Muzzling of the media
3) Misuse of the army and judiciary in favour of a particular party
4) Large-scale deployment of the army inside polling booths
• Tense situation especially in – Khyber Pakhtunkhwa (KPK) and Balochistan.
• However, Political parties were able to organize their rallies freely as per Election Rules 2017. Reformed election rule in Pakistan :
✓ Electoral system quite robust, with reformed legal framework
✓ Elections Act, 2017 and Election Rules, 2017, which has led to a greater autonomy of the ECP
✓ Financial autonomy, power to make rules and punish for contempt, and to delist an existing political party.
• Some legal reforms for enhancing women voters’ participation are noteworthy. The ECP can declare an election null and void if less than 10 % women have voted in a constituency
• Each party has to nominate a minimum of 5% women candidates for the general seats in the National Assembly. Counting of Votes:
• Unlike India, the counting in Pakistan is done at the polling station itself immediately after polling closes.
• ECP admitted the failure of the Result Transmission System because it had not been pilot tested adequately. Militants participating in Elections:
▪ Militant-dominated religious organisations fighting elections – special concern to India.
▪ ECP did not allow the registration of such entities
▪ Mechanism for filtering candidates linked to such organisations was weak – 3 candidates managed to ALMOST contest
▪ Religious parties with extremist connections were totally routed both in national and provincial assemblies. Tehreek-e-Labbaik – 2 seats Allah-o-Akbar party- 0 seats Conclusion
▪ Most observers were satisfied with arrangements and conduct of elections.
▪ The Commonwealth group commended the ECP for a laudable job for holding transparent elections on schedule.
▪ General Election 2018 – an important milestone in strengthening democracy in Pakistan.
For a capitalism less stigmatised
Business sentiment SHOULD BE good because –
1. GDP growth is back on track
2. Government reforms are in execution mode
3. Ease of doing business is improving
4. Macro economic environment is on the favourable side BUT – Public sentiment is negative towards the corporate sector. CEA Arvind Subramanian observed recently, public opinion about the private sector has changed from “crony capitalism” to “stigmatised capitalism” ** Stigma → The intense rent-seeking and corruption associated with the allocation of spectrum, coal, land and environmental permits reinforced the stigmatisation against private capital Why is the sentiment not positive? Issues in corporate Governance have brought the reliability and credibility of India’s corporate sector into question. ex. : PNB , ICICI and Kingfisher cases The onus is on the private sector to dispel any fears and clear the clouds of doubt Multi-Pronged Approach (perception + action)
▪ TRANSPARENCY –
• Appropriate and timely disclosures in the public domain by the companies, especially related to major board decisions
• All critical board decisions should be kept in the public domain
•Open and free communication will substantially help improve the perception
▪ Corporate governance – The rules may have left some scope for ambiguity. Don’t utilise the ambiguity. Take a conservative approach and behave with caution
▪ Responsible capitalism Shareholder capitalism → Stakeholder capitalism. Right now the focus is creating value for the shareholder It need to shift to overall value creation is higher for all stakeholders including customers, employees, regulators, government and the society at large Value added to the general society by creating jobs and making efficient investments is far better
▪ Don’t wait for government or the regulators to find solutions.
Conclusion
✓ The Indian private sector has contributed to propelling India into becoming the sixth-largest economy in the world.
✓ The private sector has the capabilities and resources.
✓ It must work on responsibility to use these resources wisely.
✓ A highly responsible and credible corporate sector can ensure a doubledigit GDP growth
✓India’s corporate sector is at a crucial juncture in its evolution – it needs to seize the India opportunity with both hands and needs to think constantly about what can done to make the business world more credible.
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