Thapar writes about the unanimous decision of eleven British Supreme Court judges to declare UK Prime Minister Boris Johnson’s decision to prorogue the Parliament as “unlawful and void”. The “constitutional earthquake” has led to demands for Johnson’s resignation.
The issue had caused a split in the judiciary on whether the prime minister’s decision to prorogue was “justiciable”. The government’s defence was that it’s a political issue that cannot be questioned by the court. The court deliberated on three main questions. First, “Is the advice to prorogue justiciable?” Second, could the prime minister’s prerogative be inquired into? Third, “can the Executive use its prerogative to stop Parliament making laws by exercising that prerogative to determine how long Parliament can function?” The third question prompted all 11 judges to decide that the prorogation was unlawful as it “prevented parliament from carrying out its constitutional role”, he writes.
Considering calls for Johnson’s resignation, he may end up being Britain’s shortest-lived Prime Minister. If he doesn’t resign, or further calls for a second “lawful” prorogation, he is unlikely to be accepted by voters. A quiet resignation may be the best option for Johnson’s Tory party and the Brexit cause, concludes Thapar.
Existentialism with equity: The climate dilemma
Navroz K. Dubash | Professor, Centre for Policy Research
Hindustan Times
The most powerful image of the recently held UN Climate Action Summit was that of young climate activist, Greta Thunberg saying, “How dare you continue to look away?” writes Dubash.
The summit was organised for world leaders to discuss long term plans, but in reality all that came out of it was “slightly warmed-over policies”. Few countries pledged a net-zero carbon goal for 2050, while others like India just reiterated that they would meet their Paris Agreement pledges. Countries like the US, Brazil, Japan and Australia did not even show up, notes Dubash.
There are two parts to the climate change issue. First, it is an “existential problem” that threatens life on earth and therefore requires “extraordinary” measures. Second, action is needed but the decision of how much each country should individually do is also important.
India is in a tricky position. As a poor country, it is vulnerable to climate change, but considering its considerable energy needs for the future, it also holds the belief that “the carbon pie has to be divided equitably”. It may promote renewable energy, but it is also looking to sign oil and gas contracts and “attract investment in coal”.
“Like everyone else, we, too, are looking away”, concludes Dubash.
Isher Judge Ahluwalia | Chairperson, ICRIER
Ayush Khare | Research assistant, ICRIER
The Indian Express
Ahluwalia and Khare write about the efforts of municipal authorities and citizens to segregate waste.
The first rule of waste management, they say, is that households must segregate their waste before it is collected from their homes. India’s Solid Waste Management Rules 2016 echo this. Tamil Nadu, Bengaluru and parts of South Delhi have seen many successes in this campaign, courtesy citizen action.
But there is pushback against the campaign from three main kinds of superior but “retrograde” technologies: first, “waste-to-energy” plants that rely on the “incineration of mixed waste”; second, the weight-basis nature of the payment made to private parties who take on waste transport contracts; and thirdly, compactors — expensive machines that compress volumes of waste — are the “antithesis of segregation”, note the authors.
The better alternative is to work with local “kabadiwalas” or NGOs for recyclable dry waste, and work on safe disposal of the rest. The Ministry of Housing and Urban Affairs must stop financing compactors and support municipalities with more sustainable methods of waste management, conclude Ahluwalia and Khare.
Why the broad trajectory of all taxes in India is downwards
R. Jagannathan | Editorial director, ‘Swarajya’ magazine
Mint
Jagannathan brings economic growth in focus after Finance Minister Nirmala Sitharaman dramatically lowered the corporate tax rate last week.
According to him, the move shows that the Modi government has put last month’s Rs 1.76 trillion “bonanza” from the RBI to good use by reviving animal spirits in the economy. He predicts taxes will follow a downward trend in the future, including personal tax rates which are likely to be lowered to be in tandem with the corporate tax rate.
Concerns that renewed animal spirits will mean the exchequer has to be willing to take a fiscal risk are “wrong-headed”, and worrying about fiscal deficit should be next year’s problem, he writes. While the corporate tax rate cut may only revive the supply side of growth, Jagannathan is optimistic that rural demand will pick up in the next fiscal year. Indian companies should also address the demand stimulus, “now that the government has responded to its cries for help”.
Christophe Jaffrelot | Senior research fellow, CERI-Sciences Po, Paris, and professor, King’s India Institute, London
The Indian Express
Jaffrelot identifies a large number of NPAs, especially in public sector banks, as a major reason for the economic slowdown and rising employment. The merging of PSU banks to tackle this does not address the “crux of the problem”, he writes.
Jaffrelot highlights that due to structural pressure, the heads of PSBs were forced to lend money to industrialists, over and above their existing dues. This practice is a classic example of crony capitalism, he writes. “The nexus between businessmen and politicians is based on a classic exchange of favours: The former help the latter to get access to credit in return for funds for election campaigns.”
The electoral bonds scheme pushed by the Modi government, allowed industrialists to fund election campaigns anonymously. “The BJP reportedly reaped 95 per cent of the contributions through such bonds,” writes Jaffrelot. Thus, a reform in the banking system requires that PSU bank CEOs be shielded from political interference and privatisation can help with this.
He also recommends “the enforcement of a more rigorous management autonomy under the aegis of a robust regulator”.
Enterprise, education and eudaemonia
R. Gopalakrishnan | Corporate advisor and distinguished professor of IIT Kharagpur and former director of Tata Sons
Business Standard
Gopalakrishnan writes that the growth of a nation requires three Es: enterprise, education, and eudaemonia — “the Greek-derived expression for human well-being in terms of health, happiness and relationships”. While, the short-term fixes that the government has recommended are needed, one cannot forget that these are “jugaad economic planning”.
India needs “strategic planning by police planners and business,” he writes. He also recommends building Indian companies as institutions. There are three ways to achieve this: sound strategic intent and purpose; agility and scale; and strong values and high ethics.
He argues that companies like Tata and HDFC “have generated about 2 million direct jobs, 10 million indirect jobs”, over 35 years and the renewal rate of market capitalism through these years was most probably 20 per cent.
“This is just not good enough for the aspirations of our nation or society, we need a renewal rate that is far higher.” To achieve that, India needs “solid, well run, long-life business institutions”, he concludes.