Bal Samelan (Children’s Fair)
Chittorgarh, Rajasthan, India, December 26-27, 2005

CUTS Centre for Human Development (CUTS-CHD), in association with Save the Children, UK, organised a Bal Samelan (Children’s Fair) under the ‘Rural Girl Empowerment Project’ to mark the International Child Exploitation Opposition Day and International Child Rights Day, at Chittorgarh, Rajasthan, India, on December 26-27, 2005.

The children, small groups, debated on various subjects, such as violence against girl child: causes and solutions; restrictive elements in the development of child; views and perceptions of society with respect to the girl child; and special rights of girl child etc. In addition, children also presented various cultural programmes on child rights: violence against girl child; expectations of children from the society; child marriage, a social curse; and abortion of foetus as a social crime etc

The main objective of the programme was to create awareness in the community regarding child rights and to provide the children with a platform to display their skills.

Contact Person: Shashi Prabha

A Seminar on ‘National Consumers’ Day’
Chittorgarh, Rajasthan, India, December 24, 2005

CUTS Centre for Human Development (CUTS-CHD), in association with District Supply Office organised a seminar on ‘National Consumers’ Day’, at Chittorgarh, Rajasthan, India, on December 24, 2005.

The aim of the seminar was to inform and sensitise the consumers to be aware of their rights, so that they can fight against the social crimes like adulteration, counterfeiting and spurious products. Other issues linked to consumer protection, such as the need to revamp current consumer protection laws were also discussed.

Speaking on the occasion, District Collector Rajendra Singh Shekhawat, the Chief Guest said that it was the basic right of every consumer to live a secure and healthy life and for this they should be protected against products, production processes and services, which are hazardous to health or life. The consumers should be given the facts about a product and to be protected from misleading advertising and labelling. CUTS-CHD Coordinator, Dhanna Singh Rawat said that the consumers should be given a choice to select from a range of products and services, offered at competitive prices with assurances of satisfactory quality and effective redressal mechanism to receive a fair settlement of just claims, including compensation for misrepresentation, shoddy goods or unsatisfactory services.

Contact Person: Shashi Prabha

Indah: Indonesia
Indonesia has a national sugar policy that encompasses international policies, such as the Agreement on Agriculture (AoA). The country’s support from the International Monetary Fund (IMF) has led to a massive restructuring of the sugar sector in the last 10 years, which has led to dramatic impacts on consumers and producers.

Sugar is a very important sector of the economy. It is vital as an energy source for the population, and plays an equally marked role in trade.

Indonesia is a net sugar importer. Production is concentrated around the island of Java. Prior to reforms, production was concentrated around small scale Government-owned factories, although there was private sector production as well. Before the reforms there were around 1000 factories processing sugar, and between 1981-1998 the Busan Urusan Logistic Nasional (BULOG) controlled sugar prices. Because production was concentrated in Java, sugar prices there were much lower than those in the other islands, and as a result, consumers in the other islands felt cheated.

When the Rupiah declined sharply, the sugar industry collapsed due to over- dependency on this commodity. The Indonesian Government started an IMF-sponsored structural adjustment programme (SAP), which involved a restructuring of the sugar sector away from public ownership, and towards private sector production. Over a number of stages, the number of sugar processors was reduced from 1000 to 10, with roughly half of the remaining 10 being state-owned enterprises (SOEs).

In Indonesia, the demand for sugar on average increased to 3.2 million tonnes per year during the reforms period. In 1996, production was about 2.1 million tonnes and it decreased to 1.5-1.7 million tonnes in 1998-2002. As a result, annual imports have been higher after 1998, which have been facilitated by increased openness to sugar imports. There were shortages in July-September 1998, and June-July 2000. In the year 1997- 1998, the price of sugar doubled. There has also been a problem of smuggling of the commodity.

What impact has this had on consumer and producer prices? Now that production is concentrated in a few hands, this has given the processors greater control over the prices paid to producers and consumers. Producers struggle to receive a price that is economically viable for them and these low producer prices have generally not led to lower prices for consumers as the importers, processors and retailers have captured the price differential. Also, the reforms have failed to deal with the grievances of the consumers and producers outside of Java.

BULOG still operates, but has failed to remedy these problems and support efficiency gains of sugar processors, two-thirds of which have significant inefficiencies.

Sophia: Canada
It may be observed that the typical commodity market is like an hourglass with numerous farmers at the bottom of the supply chain and many consumers at the top. The narrow middle section represents the importers, processors and marketers, small numbers of which frequently control the supply chain and extract most of the revenues.

Those who control the market have the ability to set prices and standards that farmers must adopt. Three scenarios have been highlighted below:

• Corporate role/power leads to international delegation;
• Companies set internal standards; and
• Information asymmetry results in little transparency in the international commodity market.

The market in many cases is characterised by vertical and horizontal integration. Horizontal integration is when a small numbers of firms control a particular sector, e.g., marketing, and this has been a common phenomenon for quite some time. What is more of a recent but growing phenomenon is vertical integration when one firm controls a large chunk of the supply chain and owns farms, provides inputs to farmers, transports the produce and markets it as well. One example of such a firm is the US firm Cargill.

We therefore, need competition rules to regulate trade internationally, and make sure that the benefits of the supply chain are spread more evenly. Canada is one example of public regulation that has played this role, where a wheat board controls the supply chain and is a non-profit organisation (NGO), the debts of which are underwritten by the Canadian Government. However, the Government has only had to intervene financially on a few occasions and the system has generally worked well.

When we look at the situation in developing countries, these problems become more sensitive, as food security becomes a serious issue. It is very important in this regard to give developing countries the policy space to craft their own development plans on agricultural cultivation, production and marketing, and to develop a regulatory system that pays attention to the interests of all parts of/in the supply chain.

The agricultural sector has to be dealt with quite carefully with respect to market concentration, as many areas of the supply chain, for example processing, are capital intensive and benefit from a degree of market concentration.

Issues From the Floor:
It is important to look again very carefully at the structure of economies in developing countries. For example, Kenya has only 8 percent of arable land. Services account for 60 percent of the country’s gross domestic product (GDP). Therefore, should the emphasis not lie in services, as in many cases, developing countries may never be self-sufficient in agricultural production? Also, given the structure of their economies, their comparative and competitive advantage may lie in other sectors. Perhaps, it is time not to concentrate too much on the agriculture debate at the expense of other issues. Many people in Kenya oppose the import of sugar, however, the country cannot produce enough to satisfy demand, and export restrictions merely work to increase prices for consumers.

In many instances, developing countries have a problem of supply bottlenecks that are due to poor infrastructure development and maintenance. In this light, even if developing countries are granted market access, they would find it difficult to export their products, or what is even more disappointing, they may not have any products to export.

The key question should be whether we want trade, then competition or competition, then trade. Often, countries do not set up the right regulatory framework and therefore, it is of no surprise that trade doesn’t achieve the objectives that it sets out for producers and consumers.

It is important for developing countries to craft their own national development plan where emphasis is placed on economic development, and then, trade policy should be crafted according to this strategy. Trade policy should not be formulated before the development plan.

It is very hard to identify key points in the supply chain where competition legislation can be utilised to tackle these problems, and we need to think more creatively about how we can identify specific areas where competition policy can play a role. This is also quite a sensitive area, as in some cases, tackling the difficulties producers face in receiving suitable prices might lead to price rises for consumers, and this impact has to be weighed against the benefits to producers.

If we look at the way economies develop, there is a movement away from agricultural production towards manufacturing and services, with the agricultural sector playing a reducing role in national income and employment as development progresses. We have to be careful that in tackling these complex supply chain problems, we don’t advocate policies that set back the development process, and that, agriculture is encouraged to become more efficient so that it can support the rest of the economy more effectively. I am concerned that the proposals for sensitive and special products in the agriculture negotiations are going to promote the survival of inefficient farmers, whereas, an increased openness to import these products would help the agricultural sector to orient itself towards more efficient production.

In response to the last statement, the problem many developing countries face is that, in order for farmers to move away from so-called inefficient sectors and encourage the development of sectors outside agriculture, sufficient opportunities are needed outside of agriculture into which they can move. However, many developing countries don’t have the resources, institutions and infrastructure to develop these alternative sectors efficiently. Also, the progressive liberalisation agenda being pushed by the World Trade Organisation (WTO) and other international institutions is making it increasingly difficult for many developing countries, to maintain the policy space, to develop these alternative livelihoods and forms of employment.

Does Trade Lead to Poverty Reduction: Voices From the Grassroots
Hong Kong, December 15, 2005

Contrary to the populist belief and perception that trade leads to poverty reduction, this meeting organised by CUTS Centre for Trade, Economics & Environment (CUTS-CITEE) set the record the straight. Eminent panellists drew similar conclusions that the linkages between trade and poverty reduction are not yet clear or evident. There may be a few examples to prove that this link exists but these cases are stray and do not constitute a decent sample size in order for any substantial generalisation.

Kamal Malhotra, Senior Adviser, United Nations Development Programme (UNDP) said that trade liberalisation does not always lead to poverty reduction and trade can only be one of the means to reducing poverty. To look at trade as an end in itself to poverty reduction would be a very micro approach to issues surrounding poverty. He quoted the example of Vietnam, which is not member of the World Trade Organisation (WTO) and yet has been growing steadily over the past few years. Countries ought to dismantle trade barriers as they grow instead of reducing trade barriers as a pre-request to growth.

Dr. Venkatesh Sheshamani reiterated the fact that the links between trade and poverty reduction are tenuous and empirical evidence also proves this. Poverty reduction is closely linked with human development and a far more holistic approach is needed. To assume that trade leads to poverty reduction needs to be examined in the light of various other cyclical factors of poverty, such as literacy, access to resources, health care etc., which are very complex issues.

Jean Pierre Lehman was of the opinion that relaxing domestic regulations play a very important role in reaping the benefits of trade. He quoted the example of India, which has not taken adequate benefits accruing from trade due to its inflexible domestic regulations, which were in place in the past.

Anil K Singh of Network of Entrepreneurship and Economic Development (NEED), an entrepreneur from India stated that the need of the hour was a bottom-up approach, one where community members mobilise themselves in the form of self-help groups (SHG). Though there were benefits from the trickle down effect of trade, assistance in the form of trade facilitation would be welcome.

Otto Genee, Policy Coherence Unit, Ministry of Foreign Affairs, The Netherlands, a member from the Dutch Government who came in place of Agnes Van Ardenne, Minister for Development Cooperation, The Netherlands, placed the onus of poverty reduction on the local governments of countries. He stressed on the importance of domestic policies in promoting better wages, working conditions and standard of living, as these were internal issues that needed to be worked out between the people and the local government. Though international trade plays a role in so far as exports are concerned, the tentacles of the WTO are expanding its influence into domestic issues as well. Therefore, it is imperative for governments to keep in mind the linkages and strive towards domestic policies that are pro-poor and in favour of the marginalised.

South-South Cooperation for Development must withstand the Emerging Political Pressures
Hong Kong December 15, 2005

On the fringes of the Hong Kong WTO Ministerial, CUTS International, Jaipur, organised a high level session to promote South-South cooperation. The session brought together representatives from the government, the private sector and the civil society organisations (CSOs) to explore future prospects and strategies for promoting South-South cooperation.

Pradeep S Mehta, Secretary General, CUTS International pointed out the increasing importance of South-South cooperation on trade and highlighted the fact that currently about 35 percent of least developing countries (LDCs) exports are to fellow LDCs.

He also stated, “the challenge of continuing this cooperation even with the competitive pressure that it generates amongst developing countries needs to be faced head-on and requires strong political commitment to find solutions.”

The challenge of deepening South-South cooperation was put into the context of the ongoing Hong Kong Ministerial by Toufiq Ali, Ambassador of Bangladesh to the WTO. Arriving fresh from deliberations at the Ministerial, he updated attendees on the attempts by developed countries to split the LDC group over the issue of duty-free and quota free access to their markets.

The US, along with other developed countries, is currently resisting efforts to offer textile and sugar producing LDCs the duty-free and quota free access to their markets.

Representing the South African Institute of International Affairs (SAIIA), Johannesburg, Mills Soko, emphasised the need for the South-South cooperation agenda to be more focused in developing concrete projects to stimulate cooperation. He highlighted cooperation amongst India, Brazil and South Africa (IBSA) in the aerospace industry as an example to emulate.

Capacity Building Workshop under the Farmers’ Rights Programme (Phase-II)
December 13, 2005, Dehradun

CUTS Calcutta Resource Centre (CUTS-CRC), in association with the Rural Litigation & Entitlement Kendra (RLEK), organised a capacity building workshop under the Farmer’s Rights Programme (Phase-II), at Dehradun, Uttaranchal, on December 13, 2005.

The objective was to enhance capacity of farmers, who must have their say on the question of sharing the natural resources preserved by them for over hundreds of years.

Vijay Kumar Dhoundiyal, Additional Secretary, Department of Agriculture, Government of Uttaranchal; S M A Kazmi, Special Correspondent, Indian Express; Dr Ghayur Alam, Director, Centre for Sustainable Development, Dehradun; Kunwar Prasun of ‘Beej Bachao Andolan’ (save seed movement) from Tehri Garhwal were present in the workshop and expressed their views. Around 50 participants from all over Uttaranchal participated in the workshop.

For further details please contact:
Debottam Chakraborty
Email: calcutta@cuts.org, cutscal@vsnl.com

Synergising LDC and Developing Country Priorities
Hong Kong, China, December 13, 2005

CUTS-ARC, in collaboration with civil society partners, organised a panel discussion on ‘Synergising LDC and Developing Country Priorities’ in Hong Kong on the sidelines of the Sixth WTO Hong Kong Ministerial Meeting on December 13, 2005. The event was a part of ICTSD’s Hong Kong Trade and Development Symposium.

The objective of the discussion was to promote cooperation between the developing and least developed countries (LDCs) in the WTO system by identifying areas of common interests and priorities in the Doha Development Agenda (DDA) negotiations.

A group of 11 Members of Parliament (MPs) from a cross section of political parties formally launched the Parliamentarians’ Economic Policy (PAR-FORE) in a meeting hosted by Consumer Unity and Trust Society (CUTS) at New Delhi.

CUTS Secretary General, Pradeep S Mehta welcomed all the participants and informed them that the Forum has received assents from 45 MPs, who wish to create a non-partisan forum to address the economic policy issues which can help India move forward. The PAR-FORE is set up as a result of a collective initiative taken up by five MPs representing different political parties. Since the very beginning, CUTS has been at the forefront of facilitating the entire process.

In this inaugural meeting, the PAR-FORE discussed two crucial issues: (i) Regulatory Autonomy and Accountability; and (ii) WTO Hong Kong Ministerial Conference: What is at Stake for India. For this, CUTS had prepared and distributed ‘Issue Notes’ (a two-page paper on a single issue related to trade and economic equity) in advance on both the issues with the objective of providing a brief to the Parliamentarians. A typical ‘Issue Note’ contains an overview of the subject along with identification of critical issues that have implications on policy formulation.

After the first issue, Regulatory Autonomy and Accountability, was discussed at length, the participants felt the need for a closer attention to it. The MPs expressed concern about the need to address the gaps in the regulatory framework in India. Further, the practice of appointing retired bureaucrats in regulatory bodies was also debated, a trend the MPs wanted to stop it.

On the Hong Kong Ministerial of WTO, MPs opined that all matters must be discussed in depth after the Ministerial is over. Other than the substantive issues, the Forum also discussed the matters related to the process evolution.

The participants endorsed that the PAR-FORE offers a fit platform for MPs to share views and ideas on economic policy issues on an informal basis, which would help in inculcating better understanding, and subsequently, in reaching a consensus on contentious issues.

A suggestion was, therefore, made to CUTS to continue preparing detailed analysis on various bills, which are to be presented in the Parliament, and organise such meetings to discuss them. It was felt that such a discussion would help MPs in understanding the bills better and hence facilitate their effective participation in the debates.

Some of the MPs who attended the launch meeting were: Yashwant Sinha, Dinesh Trivedi, N K Premchandran (All of them are initiators of PAR-FORE); Sharad Joshi, R. Sambasiva Rao; Khabiruddin Ahmed; Ram Singh Kaswan; Sartaj Singh and Annasahib Patil. All of them come from different political parties. Many of the MPs, who endorsed the participation, could not turn up because of winter session of Parliament.

It was decided that CUTS would draw up calendar for the year 2006 and organise meetings of the PAR-FORE at Delhi on Wednesdays during the Parliamentary session.

AIDS Awareness Programme
Bhilwara, Rajasthan, India, December 01-15, 2005

CUTS-CHD, in association with CARE India and District Health Department, Chittorgarh, organised ‘AIDS Awareness Programme’ at Bhilwara, Rajasthan, India, during December 01-15, 2005.

The programme aimed at social mobilisation in order to promote awareness on HIV/AIDS among the youth and the community.

Information-based Advocacy, Networking, and
Capacity Building on NEPAD in Zambia
Lusaka, Zambia, November 29-30, 2005

The workshop organised by CUTS-ARC, Lusaka, in association with Participatory Ecological Land-Use Management (PELUM), Zambia was held under the partnership project entitled: ‘Information-based Advocacy, Networking, and Capacity Building on the New Partnership for Africa’s Development (NEPAD) in Zambia’, supported by the Canadian International Development Agency (CIDA) at Lusaka, Zambia, on November 29-30, 2005.

The workshop aimed at integrating NEPAD agriculture programmes into the National Development Plan, and build capacity among development actors from both civil society and the government to have a comprehensive understanding of the programmes.

Consumer Awareness on Rational Use of Drugs
Jaipur, Rajasthan, India, November 26, 2005

CUTS-CART organised the campaign involving students form different schools, as a part of the Consumer Awareness Generation Programme under the project, ‘Rational Use of Drugs (RUD)’, supported by the World Health Organisation (WHO) and Office of the Drug Controller General of India, at Jaipur, Rajasthan, India, on November 26, 2005.

Deepak Saxena of CUTS International and Rajeshwari Kalia, Principal, Government Girls Senior Secondary School were the resource persons of the event. Under the campaign, different sessions of debates on RUD were conducted including a documentary film. More than 150 students participated in the campaign.

Strategic Review of WTO provided Trade Related Technical Assistance Activities
Geneva, Switzerland, November 23, 2005

The Inception workshop of the ‘Strategic Review of WTO provided Trade Related Technical Assistance Activities’ was organised by CUTS at Geneva, Switzerland, on November 23, 2005.

The strategic review will look at WTO’s comparative advantage in offering trade-related technical assistance vis-à-vis other agencies, the relevance of WTO’s programme to the members and the participants, and efficiency and management of WTO-provided technical assistance. Implementation and methodology were discussed and finalised in the Inception workshop attended by the project partners; Latin American School of Social Sciences (FLACSO, Argentina) and Canada-based North-South Institute; and members of the project’s Steering Committee.

Bal Samelan (Children’s Fair)
Bhilwara, Rajasthan, India, November 19-20, 2005

CUTS Centre for Human Development (CUTS-CHD), in association with Save the Children, UK, organised a Bal Samelan (Children’ Fair) on the theme, ‘Our Initiative against Violence on Girl’ to mark the International Child Exploitation Opposition Day and International Child Rights Day at Banrea District, Bhilwara, Rajasthan, India, on November 19-20, 2005.

In the inaugural session, Kamla Mali, the Village Pradhan (head of village council) of the Banera Panchayat Samiti (village council) said, “Any kind of injustice, atrocity, maltreatment or discrimination against girls is a not only a sin, but also a social curse. If no effective steps are taken to counter injustice, atrocities and discrimination committed against the girls, then the country will have to pay a very heavy price for it, and the girls of this country will never forgive us”. She further said that the girls should, like the boys, also be given equal opportunities of education, care and development.

Srinivas Tripathi, Tahsildaar of Banera, expressing his views, said that it is the moral duty of the society and the government to protect and foster the child rights in all circumstances. While addressing the event, Development officer of Banera, J P Shrimali said that various government projects and programmes are being conducted in order to protect the rights of the children and their development, but the benefits of these programmes and projects will reach them only when the society becomes aware and sensitive.

Dhanna Singh Rawat, Coordinator of CHD, in his speech, said that in order to eliminating all forms of discrimination against the girl child and at the same time promoting gender equality and equal access to services, including basic education, an forceful social movement is necessary.

In the second session, children, small groups, debated on various subjects, such as violence against girl child: causes and solutions; restrictive elements in the development of child; views and perceptions of society with respect to the girl child; and special rights of girl child etc. In addition, children also presented various cultural programmes on child rights; violence against girl child; expectations of children from the society; child marriage, a social curse; and abortion of foetus as a social crime etc.

In the two-day programme, attendees included various CUTS’ staff belonging to Child Panchayats and more than 135 children and social workers participated in the programme.

For further details please contact:
Dhanna Singh Rawat
Email: chd@cuts.org

CUTS Centre for Consumer Action, Research & Training (CUTS-CART), in association with the Bureau of Indian Standards (BIS) organised a programme on ‘Standardisation of Products and Consumers’ Awareness,’ at Alwar, Rajasthan, India, on November 16, 2005.

Welcoming the resource persons and participants, CUTS representative Dharmendra Chaturvedi briefed the CUTS’ activities being performed in the field of consumer awareness. He explained the consumer rights provided in the Consumer Protection Act 1986, and how consumers should use their rights at various levels of redressal mechanisms. He also outlined the responsibilities of the consumers while purchasing goods or availing services.

Addressing the conference, Director of BIS Amitabh Mukherji, said that BIS provides standards on products after ensuring their quality and variety. He also explained to the rural consumes the procedure to be adopted for the standardisation of products. Mukherji cautioned the consumers against the duplicate products.

Elaborating the BIS procedure, Mukherji said that while providing ISI mark on the products, Bureau mainly focuses on the quality of the products. He further added that the manufacturers deceive the consumer by using wrong ISI Mark. Hence, pamphlets were distributed to inform the consumers in order to ensure and verify right ISI Mark and Registration No. on the products, which is invariably indicated. He also suggested that consumers should bring the duplicate cases to the notice of the BIS, so that legal action could be taken.

Participants also raised many queries related to ISI Mark on products such as adulteration in food products, consumer rights and complaints, etc., which BIS Officer and representatives of CUTS replied to their queries. More than 50 representatives participated in the programme.

For further details please contact:
Dharmendra Chaturvedi
Email: cart@cuts.org

The project on Rational Use of Drugs is simultaneously being implemented in nine states of India. The project aims to make consumers aware about their rights and responsibilities regarding proper use of medicines through consumer awareness programmes. As part of the awareness programmes, public interfaces were organised in four districts of each of the nine states. In West Bengal, two such programmes were organised at Alipurduar, Jalpaiguri district, West Bengal, on November 11, 2005 and Palsa Pally, Murshidabad district, West Bengal, on November 21, 2005 respectively. The programmes included screening the short documentary film on rational use of drugs and engaged the audience in an interactive session presided over by a resource person. The objective was to create awareness at the rural level.

For further details please contact:
Rupa Mazumdar
Email: cutscrc@vsnl.com, calcutta@cuts.org

CUTS Calcutta Resource Centre (CUTS-CRC), in association with the Department of Commerce and Industries, Government of West Bengal organised an orientation workshop on World Trade Organisation (WTO) issues, with the top-level officials from Government of West Bengal. The half-a-day programme was organised at the boardroom of West Bengal Industrial Development Corporation (WBIDC) on November 11, 2005. S Kishore, Executive Director, WBIDC gave the welcome address to the participants while Bipul Chatterjee, Director, CUTS-CITEE explained in detail the probable strategies to defend the stake of West Bengal in the new era of economic reforms. Pradeep Kumar Chakraborty, Joint Secretary, Cottage & Small Scale Industries Department, Utpal Kumar Biswas from Department of Science & Technology attended the workshop.

For further details please contact:
Dalia Dey
Email: cutscrc@vsnl.com, calcutta@cuts.org

Circle-level Orientation of CUTS-FES Power Sector Reforms (Churu) Phase II
Churu, Rajasthan, India, November 09, 2005

As a part of the activities of the Phase II of CUTS-FES Project on 'Involvement of Consumers in Power Sector Reforms’, a series of seven orientation workshops will be organised in 12 identified circles of Rajasthan, India, from June 18, 2005 to May 20, 2006. The seventh workshop, in the series, was organised in Churu, Rajasthan, India, on November 09, 2005.

The objective of the programme was to facilitate an active involvement of the consumers in power sector reforms.

Kepa Zambia, Civil Society Trade Network of Zambia (CSTNZ) and Consumer Unity Society Africa Resource Centre (CUTS-ARC) jointly organized a one day workshop titled: Non State Actors workshop on a common position for Hong Kong in Lusaka 3rd November 2005. The objectives of the workshop were; to provide a proactive forum to brainstorm, lobby and advocate for a more pro focused National Position paper. To create an opportunity to discuss the draft Non State Actors (NSA) national priority paper and make recommendations to the Zambian delegation for the 6th World Trade Organisation (WTO) Hong Kong Ministerial, and to flag on priority issues to be considered by the Zambian Government at the 6th WTO Hong Kong Ministerial Conference.

When presenting the Draft Position Paper University of Zambia Lecture Mr. Dale Mudenda said that, it is evident that without sufficient assistance in form of aid, technical assistance and debt relief, Least Developed Countries (LDCs) will be unable to cope with the emerging challenges of globalization. Thus these should make part of the pillars of successfully developing the LDCs and integrate them into the Multilateral Trading System.

Speaking at the workshop Mr. Stephen Muyakwa coordinator of CSTNZ, said that there is need to address the issue of the Standards. As this has affected Zambia’s capacity to penetrate Markets of Developed Countries (DCs). He further said that LDCs should be involved in setting of standards, and DC should not change standards without consultations with all parties involved.

The workshop called on the Zambian Government not to sign the Economic Partnership Agreements (EPAs) in its current form. Following further discussions it was established that Zambia should undertake Impact Assessment Studies before responding to requests and giving offers when trading in services. In conclusion the workshop called for transparency in the decision making process.

For further details please contact:
Vladimir
Email: lusaka@cuts.org

Kepa Zambia, Civil Society Trade Network of Zambia (CSTNZ) Consumer Unity and Trust Society-Africa Resource Centre (CUTS-ARC) and Panos jointly organized a one day Media Training workshop on the World Trade Organisation (WTO) on 2nd November 2005 in Lusaka. The training workshop was being held with the objectives of creating awareness amongst journalists about WTO, to enable journalists understand WTO agreements and their implication for Zambia, to encourage media reporting on trade and WTO issues and their implication on Zambia.

The workshop discussed a number of issues ranging from international trade and WTO, the Zambian perspective, WTO negotiations and LDCs, Cotton Trade and WTO rulings: implications for Zambia. Journalistic issues: reporting trade from a human angle.

It was outlined during the workshop through a presentation made by Zindikilane Dhaka of Organization Development and Community Management Trust (ODCMT) that Zambian cotton farmers have been disadvantaged under the Multilateral Trading System. The reason for this is: the declining of cotton prices on the international market. He said that there is absence of a proper pricing mechanism to address the shortfall.

Speaking at the same workshop Jack Jones Zulu of Jesuit Centre for Theological Reflection (JCTR) called on the media in Zambia to build capacity for effective engagement in Trade and Development at all levels. He further said that Zambia should take advantage of its membership in the WTO to negotiate for trade rules that would respond to the needs of its domestic economy.

For further details please contact:
Vladimir
Email: lusaka@cuts.org

The New Partnership for Africa’s Development (NEPAD) is an initiative launched by four African heads of state to promote the development of Africa within the framework of a new partnership between the African continent and the other parts of the world. At the first summit meeting of the African Union, held in Durban in July 2002, the African heads of state and government agreed on a formal declaration to realise the initiative.

As part of the process towards attaining NEPAD objectives, the Ministry of Foreign Affairs (MoFA) Zambia, in collaboration with Consumer Unity and Trust Society-Africa Resource Centre (CUTS-ARC), the United Nations Development Programme (UNDP) and technical support from United Nations Economic Commission for Africa (UNECA) held a NEPAD Action Plan workshop from 26-28 October 2005. The objective of the workshop was to review and adopt the Zambia NEPAD Action Plan (ZNAP).

The workshop dialogued on key issues under Infrastructure (Energy, Transport, Information Communication Technologies, Water and Sanitation, Science and Technology) Agriculture and Tourism, Mining and Investment, Education, Health and HIV/AIDS, Gender and Youths.

The United Nations Development Program (UNDP) resident representative in Zambia during his address to the workshop urged Government of the Republic of Zambia (GRZ) to continue efforts aimed at maintaining political stability. And to foster efforts towards strengthening continued sub-regional integration. He further commended Zambia for being the 24th country to have acceded to the Africa Peer Review Mechanism (APRM). He further highlighted thatt the Millennium Development Goals (MDGs) and NEPAD are inseparable.

Speaking during the same workshop the G8 representative indicated that the share of Sub-Sahara global trade has been reduced to halve. This necessitates efforts aimed at building Africa’s capacity to trade. The G8 representative informed the workshop that the G8 are committed to work with the Zambian government.

Zambia’s Minister of Foreign Affairs Honorable Ronnie Shikapwasha M.P officially opened the workshop. He said that while Zambia has market access in the area of trade under Canadian Initiative, Everything But Arms (EBA) the African growth and Opportunities Act (AGOA). NEPAD on the other hand is comprehensive and its effective implementation will lead to the attainment of the MDGs.

The workshop reached a number of agreements; it called for the establishment of the NEPAD implementation committee, and the strengthening of the National Secretariat to include all stakeholders. The Secretariat is being currently housed in the Ministry of Foreign Affairs. The workshop urged the government to incorporate the ZNAP into the fifth National Development Plan (FNDP).

There was absence of the private sector participation at the workshop as it is widely held that the private sector is significant in the implementation of NEPAD projects. The absence brought about a shortfall in identifying projects under various sectors for implementation through NEPAD.

For further details please contact:
Vladimir
Email: lusaka@cuts.org

Final Consultation on South-South Economic Cooperation:
Exploring Mekong-Ganga Relationship
Bangkok, Thailand
October 26-27, 2005

CUTS-CITEE, in association with Centre for Ecological Economics (CEE), organised the Final Consultation of the Project ‘South-South Economic Cooperation: Exploring Mekong-Ganga Relationship’, at Bangkok, Thailand, on October 26-27, 2005. Supported by the Swiss Agency for Development and Cooperation (SDC), the project aims at exploring and analysing trade and investment relationship between India and four countries of the Greater Mekong Sub-region (GMS), viz., Cambodia, Lao PDR, Thailand and Vietnam.

The meeting brought together business bodies, policy makers, media, research institutions, civil society organisations (CSOs) and representatives of international and intergovernmental organisations to discuss the findings of the project research and deliberate on issues for better economic cooperation between India and GMS countries.

For further details please contact:
Pooja Sharma
Email: citee@cuts.org

CUTS Centre for Action, Research & Training (CUTS-CART) and CUTS Centre for Human Resource Development (CUTS-CHD), in collaboration with South Asia Social Accountability Network (SASANet) of the Word Bank (WB), has taken up a new project, ‘Participatory Expenditure Tracking and Survey on Midi-day meal Scheme’ in Rajasthan- focusing Chittorgarh district. The project Launch Meeting and orientation of surveyors was organised on October 21, 2005 at hotel Padmini, Chittorgarh.

In the inaugural session, , Ashutosh Gupta, District Collector, Chittorgarh addressed the meeting as the chief guest. Key-note addresses were delivered by district education officer (DEO) chief executive officer, Zila Parishad, Chittorgarh, Pradhan, panchyat samiti, Chittorgarh; J V R Murthy WB representative, George Cheriyan, CUTS Assistant Director, K.C. Sharma and Dhanna Singh Rawat, Project Coordinators.

The other distinguished participants were: block development officers (BDOs), panchayat samiti/gram panchayat representatives, teachers, non-governmental organisation (NGO) representatives, surveyors and other social Activists. More than 100 representative from all over the district participated in the Launch Meeting.

In the second session of the workshop, 28 surveyors (2 from each block) from all the 14 blocks of Chittorgarh district participated in the orientation programme. The survey will be conducted in 221 Government/Non-Government Primary Schools covering all the 14 blocks of Chittorgarh district.

Objective of the Launch Meeting:
• To analyse total budget planned and sanctioned by Central/State Government for ‘Mid-day meal Scheme’ with a view to ensure its proper utilisation;
• To study problems to be faced during its implementation and to measure its contribution towards achieving education for all, ensuring food security and addressing malnutrition among children, especially of poorest/marginalised sections and girl child’
• To assess how far the existence of formal mechanism of public accountability is guaranteeing accountability on the ground;
• To work towards building transparency and actual accountability in the public expenditure process;
• To know the perception of the common people and executing agencies from state level to gram panchayat/School level about the implementation of the scheme;
• To empower the target groups through awareness building on, and demystification of, the public expenditure process and to ultimately build-up an informed and ‘critical-minded’ society that can make transformation in the public expenditure process, and in specific to contribute towards the improvement of the Mid-day meal Scheme in the state; and
• To enhance, through this process, the capacity of the implementing organisation and other stakeholders in the Public Expenditure Tracking.

Reproductive and Child Health Nutrition and AIDS Programme
Bhilwara, Rajasthan, India
October 15, 2005

CUTS Centre for Human Development (CUTS-CHD), in association with CARE, India is implementing Reproductive and Child Health Nutrition and AIDS Programme (RACHNA), during October 15, 2005 to March 31, 2006. The Project Launch meeting was organised at Bhilwara, Rajasthan, India, on October 15, 2005.

The objectives of the project are to improve the quality and coverage of maternal and child health services in Mandalgarh and Surwana block of Bhilwara district and engage and strengthen the local government bodies for community engagement process.

For further details please contact:
Dhanna Singh Rawat
Email: chd@cuts.org

World Mental Health Day
Chittorgarh, Rajasthan, India
October 15, 2005

On the occasion of World Mental Health Day, a meeting was organised in the premises of CUTS-CHD, Chittorgarh, Rajasthan, India, on October 15, 2005.

The meeting was held to discuss the ways to reduce the number of increasingly growing patients of mental illness because of tension and stress in the society and to disseminate the right information to mentally ill people about their rights and related laws.

For further details please contact:
Dhanna Singh Rawat
Email: chd@cuts.org

Circle-level Orientation of CUTS-FES Power Sector Reforms (Jodhpur) Phase II
Jodhpur, Rajasthan, India
October 15, 2005

As a part of the activities of the Phase II of CUTS-FES Project on 'Involvement of Consumers in Power Sector Reforms’, daylong orientation workshops will be organised in 12 identified circles of Rajasthan, India, from June 18, 2005 to May 20, 2006. The sixth workshop, in the series, was organised in Jodhpur, Rajasthan, India, on October 15, 2005.

The major objective of the workshop was to facilitate an active involvement of the consumers in power sector reforms.

For further details please contact:
Deepak Saxena
Email: cart@cuts.org

Involvement of Consumers in the Power Sector Reforms in Rajasthan
Fifth Circle-level Training Workshop
Jalore, Rajasthan, India, September 10, 2005

The fifth circle-level training workshop under the second phase of the CUTS-FES programme was organised at Jalore, Rajasthan, on September 10, 2005. Nearly 110 participants, coming from almost all blocks of Jalore district took part in the event.

The resource persons were R S Choudhary, Chief Engineer of Jodhpur Discom, O P Mangal, Executive Engineer of Jodhpur Discom. Shashi Kanwar and Mohan Parashar, were the other speakers from technical side.

Apart from the above, Deepak Saxena of CUTS Centre for Consumer Action Research and Training (CUTS-CART), networker Mahendra Ojha and Murarilal Sharma were also the speakers. Sessions on capacity building and awareness in power sector reforms, power tariff settings, role of consumer organisations were also conducted.
The event got a good media coverage.

For further details please contact:
Deepak Saxena
Email: cart@cuts.org

• Underlying legislations need to be reviewed and modernised as per the changed circumstances;
• The legislations creating regulatory agencies should clearly lay down the objectives and boundaries of government’s policy;
• Objectives of regulation should be clearly spelt out in the enabling legislation and regulatory agencies should work within the framework spelt out in the legislation;
• Distinction between ‘policy’ and ‘non-policy’ issues need to be clearly spelt out;
• Regulators should be involved in the evolution of the policy;
• The manner and process through which government issues policy directives to regulator should be clearly spelt out in the regulatory law;
• Proper consultation/public hearing should be organised prior to issuing of policy directives to regulators. A gist of the discussions between the ministry and the regulator should be made public;
• Appropriate mechanism should be in place to ensure that the policy directives remain consistent with the overall objectives of the Act.

• Regulatory agencies are to be made autonomous by legislation. Therefore, the line ministry will have no occasion to intervene in their functioning
• Given the fact that regulatory agencies are instrumental in realising the policy objectives stated by the government, the line-ministry should defend and back the regulator’s decisions before the legislature whenever required;
• Having provision in the law for government superseding the regulatory agencies is not desirable. In case of force majeure and/or for security reasons, the government is anyway competent to do so;
• There should be regular consultations between the line-ministry and the regulator; the RBI-Ministry of Finance interface model should be replicated wherever feasible
• A Parliamentary Committee on Regulation and Competition should be established as the reporting authority to the Parliament for all regulatory agencies. The Committee’s domain should be confined to systemic issues only and not the individual decisions and orders of regulators. In case of operational matters, the regulator is anyway accountable to the Appellate Tribunal and the Judiciary (High Courts and the Supreme Court);
• Regulatory agency should submit an activity and outcome report to the legislature through the proposed Parliamentary Committee on Regulation and Competition;
• Constituting multi-sectoral regulators, such as one for energy and another for transport, would reduce the possibility of regulatory capture by the line-ministry.

• Regulatory mandate should be clearly specified in the Act itself;
• Regulatory agencies have to be provided with the power commensurate with the mandate given to them;
• Each regulatory objective should be examined and an assessment made about the powers the regulator would require to attain stated objectives. Doing so would ensure that regulatory powers do not fall short to attain the given mandate, effectively.

• A Committee comprising of eminent people should be constituted to select regulators for various regulatory agencies at central and state level;
• Proper manpower planning should be done to ensure that selection of regulator is made in advance of a position falling vacant;
• To identify the right person, applications should be invited against pre-determined selection criteria;
• Regulators should be given a fixed tenure of 5 years with a maximum age limit of 60 years for appointment;
• Restrictive provisions that deter people from business/non-government sector to move to regulatory bodies should be removed. Subject experts should be encouraged to joint regulatory bodies on deputation;
• The prevailing practice of sinecure needs to be discouraged. The bottom line is to encourage experts and young professionals to join such positions;
• Offer enough compensation to attract young professionals to join regulatory bodies;
• Former regulators should not be allowed to join a position of profit, for a time of one year;
• Department of Personnel, Government of India, should be designated as the Administrative Agency for regulatory bodies, responsible for functions such as, release of appointment letter to regulators, approving budget, and other administrative matters;
• Prior to induction, regulators and their staff should be provided with a short-term training.

• Protection against arbitrary removal by the government is necessary;
• Member of a regulatory agency should be removed only in case of a proven guilt or inability established in a judicial probe by a sitting judge of the Supreme Court. The proposed Committee on Regulation and Competition should order to initiate such probe, whenever necessary.

• Establish a common appellate tribunal with regional benches for a broad set of regulators, for instance one for infrastructure sector and another for financial sector;
• The law should provide for an appeal against a regulator’s decision before the Common Appellate Tribunal first and then to the Supreme Court. The appeal should be made on points of law only.
• The power to deal with disputes should be with the regulator, not the Tribunal. 

• The Parliamentary Standing Committee on Regulation & Competition should be the reporting authority to the Parliament for regulatory agencies; it should not depend on the CAG’s staff rather have own staff with suitable expertise;
• The proposed Parliamentary Committee can call regulators for an explanation, in case of systemic issues;
• Create a Consumer Advocacy Fund to build the capacity of consumer/civil society groups so that they can raise consumer concerns more effectively and to facilitate review of regulator’s performance by an important stakeholder group;
• Performance of a regulator should be evaluated through a peer/external review system against the given mandate;
• Political parties and government should give their feedback to the regulator on issues where feedback has been sought from stakeholders. Besides, they should participate in the open discussions/hearings conducted by the regulator.

• Regulatory agencies should be allowed to generate resources on their own through fee, cess, etc wherever possible, and be allowed to spend the same as well;
• The financial requirements proposed by regulator should be linked with their work plan for a certain time period (say next 3 years) and approved by the proposed Administrative Agency i.e. Department of Personnel;
• Regulators should be given the liberty to hire required staff on contract and appoint consultants, in a transparent manner.

CUTS Centre for International Trade, Economics & Environment in partnership with Research & Information System for Developing Countries (RIS) organised the National Consultation of the Project titled “South-South Economic Cooperation: Exploring Mekong-Ganga Relationship” on 1st September 2005 at India Habitat Centre [Silver Oak II] New Delhi.

The objective of the National Consultation was to facilitate cross-fertilisation of experiences and lessons learnt on economic (trade and investment) cooperation between India and select Mekong countries in order to develop appropriate policy responses and also to discuss project-related activities and methodology for the implementation. Representatives from academia, business chambers, government and inter-governmental organizations and civil society were present.

In addition, the meeting also aimed to strengthen the capacity of Indo-China countries on issues of South-South trade and investment cooperation by providing necessary know-how and do-how to policy-makers, business community, civil society and other stakeholders.

10.00-10:30: Registration
10.30-11.00: Inaugural Session

• The meeting started with welcome remarks by Nagesh Kumar [Director General, RIS].

  • After a time bound research RIS has discovered that India is in the middle, playing a key role in helping in bridging the gap between the two set of countries in ASEAN (old members and new members) e.g.: in human resource development, infrastructure development and sharing economic development and integration experiences/expertise.
• According to S.D Muni [former Ambassador of India in Lao PDR] the India country report is very comprehensive and focused on critical areas. He made the following observations:

  • The old name of Mekong-Ganga Cooperation, “Swarnabuymi” was not appropriate since it created a Thai dominance impression. Lao and Cambodia did not agree with the name. Mr. Muni indicated that while smaller countries of the region were conscious of the dominance of Thailand and Vietnam, at the same time India was considered as an economic cushion.
  • SWAP trade is a very good idea. The issue of soft credit is very important in this regard. It should be kept in mind if India wants to compete with China.
  • The issue of certain commodities, crucial for smaller nations while not having such an impact over the big Indian markets, also needs to be taken care of.
  • More persuasion and cajoling by institutions like RIS needs to be done since Indian businessmen are still reluctant to explore new markets.
  • India should take a regional approach for investment and production rather than looking at small sizes of markets in these countries. In addition to trade and investment, education remains an important market and area of cooperation.
  • The entertainment industry remains an option for entry (movies, music, Rama artefacts, archaeology, museum etc). Past historical linkage and cultural similarity need to be cultivated to foster economic relations. Cultural diplomacy can be used to buttress economic activities.

11.15-12.15: First Session: Trade and investment, and Finance

• K.J Joseph [RIS and CDS] discussed the relevance between India and Mekong countries. He observed that the similarities extend to historical, cultural and strategic as well as political aspects. The developing economies are very differently endowed as compared to developed countries.
• S.K Verma [ministry of External Affairs, GOI] discussed the two platforms (I) multilateral and (II) bilateral. He said that ASEAN (IRIA), GOI is very active and supportive. GOI has opened entrepreneurship development centres in all four Mekong countries and the one in Lao is already up and running. GOI has also extended substantial aid as well as loan in view of absence of finance in these nations. The following observations were made
  • Importance of private sector participation.
  • Exports to India need sustainability of economic relations.
  • Four areas of cooperation are envisaged in the MGC, trade is not mentioned explicitly, however, they create the framework for trade to prosper.
  • The tariff and non-tariff barriers/problems to trade expansion need to be looked at, Indian in addition to those of CLV countries. Indian tariff regime being very high is one of the reasons why Vietnam cannot export to India while their exports to other CLV countries are substantial. Unless the tariffs are reduced, the trading volume between India and CLV countries cannot increase.
• A.N Ram [former secretary, Ministry of external affairs, GOI] discussed the role of policy-makers in addressing the issues and possible actions to be taken.
  • He said that perceptions on both sides remain that business with each other is difficult due to problems like infrastructure, languages etc. To break this kind of mind-set private sector has to play a major role.

12.15-13.15: Second Session: Infrastructure and energy

• K.L Thapar [Asian Institute of Transport Development, New Delhi] observed that there are infrastructure barriers in terms of transportation as well as some natural barriers like the rivers.
  o Mr. Thapar also added that there have been some initiatives in infrastructure development; however, they have not been integrated and being highly fragmented they may not be sustainable in the long term.
• Prabir De [Associate Fellow, RIS] focused on the infrastructure development between these countries from the angle of trade. He observed:
  • Low infrastructure sophistication level impedes trade (non-availability, difficulties and high cost)
  • Development of Asian Highway would be a good prospect for India as well as for CLV countries.

14.00-15.00: Third Session: Other areas of cooperation: Agriculture, S&T and HRD, SME’s, health and pharma, Tourism, etc.

• Baladas Goshal [JNU, New Delhi] said that Trade and Investment is not an end of this initiative. India’s “Look East Policy” is to play a major role in the ASEAN affairs. Trade and Investment should complement other initiatives towards this goal.
• He mentioned that China is already playing a major role in many areas. If India has to make a presence, it should find niche areas to distinguish it and enhance its position. He added that one such area is education, which has always been very important for diplomacy. In this regard it should be noted that scholarship is not a long-term measure instead schools and training Centres should be established locally in those country.
• He discussed the area of culture and observed that there is a knowledge gap between India and the Mekong countries which needs to be bridged. He suggested that India should build up a system through which India can offer a lot of capacity building to these countries.
• He suggested that cultural tourism be promoted.
• K.P.V Nair [Asia Centre, Kolkata] maintained that lack of awareness is a big problem in both CLV countries as well as India. There have been already a lot of initiatives and programmes but we have been unable to get them running.
• He said that it is a failure on India’s part since India tends to be reactive, rather than pro-active.
• He also said that to develop trade and cultural tourism between India and other Mekong countries first we have to concentrate on the direct air link between these countries.
• Sailendra Narain [former Chairman SIDBI, and Chairman, Centre for SME Growth and Development finance, Mumbai] said that before reaching out to Mekong countries, we should develop the SMEs sector in India and re-look at the SMEs policy framework of all the countries and advocate changes at national level, then aim for sub-regional and inter-regional level to create an enabling environment. The following observations were made:
• Many reputed institutions were established in Mekong countries with goodwill but were unable to deliver the best outputs. Thus India must not create any new institutions but review the current set-ups and take necessary action for further implement and improvement.
• The financial markets have to be created and the domestic banking sectors need to be reinforced. The entire financial system of the entire Mekong region needs to be refurbished. There is a need for good venture capital, especially in some key sectors, such as Information Technology (IT).
• Rather than finance, it is very important that enterprises get adequate business development services (BDS), in terms of informatics. India should not offer support and assistance just for the sake of doing it but develop awareness, and needs to be generated. Demands have to come first before support is brought forward.
• SME’s can play a major role in Economic Cooperation between India and the CLV countries and to process in this regard India has to develop a better network.
• Ambassador Shashank [former Secretary, Minister of External Affairs, GOI] said that while India has to develop more trade and investment between these countries but interest levels in business community are very low. He added that before the cooperation takes place India needs to develop the infrastructure in Northeast India.

15.00: Closing:

• Mr. Nagesh Kumar [Director General, RIS]
• Dr. Prasad P. Ranade [Research Director, CUTS-CITEE]

Suggestions and comments:

1. Present Status of Indian Government regarding the direct air link between India and the CLV countries.
2. Proposal for direct airlines between India and the CLV countries made by Vietnam airlines but no response from Indian government.
3. Trade infrastructure in Mekong countries are quite fractured therefore FICCI and CII might not be the right institution since these organizations are associations of big businesses.
4. Data presented regarding the trade relation between India and CLV countries was relatively old, changes are happening very quickly in Vietnam, even in the policy framework, therefore data needs to be updated.
5. India did not compete well with other countries in playing a major role in assisting and cooperating with Indochina countries.
6. About the key priorities for further cooperation. India should look at the economic partnership with CLV countries and should have concrete plans for developing this partnership.
7. Various messages should be sent to the government so that this can turn into realities.

Answers from the Dais:

B. Ghosal: Looking at the experiences of East Asian countries, the government can facilitate and encourage (with incentive policy) businessmen to invest and do business in these countries, especially the SMEs. Instead of proposing ambitious plan, focus should be on identifying certain areas and pushing them.

S.K Verma: In India tariffs are high. India government is considering revisions and very soon they will be close to ASEAN level. Direct flight agreement is almost concluded, under discussion. Very soon there will be positive approach. However, efforts have to be mutual.

K. J. Joseph: Indian tariffs are going down. However, despite high level of tariffs, Indian imports have increased 5.2 times since 1992. Additionally, tariff is just one impediment; this study goes beyond that issue to address other NTBs as well.

A.N Ram: There are perceptions on both sides that it is difficult to do business with each other due to several problems/barriers like infrastructure, languages etc. India has to break away from this mindset. Private sectors should play a major role.

Objectives
Economic reforms are not new in India. Since independence the economy has undergone several phases of reforms. What could be the benchmark to understand the impact of such reforms? Several indicators can be identified, but the two most important ones are: growth rate of the economy, and employment opportunities having a significant impact on poverty reduction.

As compared to the situation at the time of independence, the Indian economy is doing well on both counts. In that case, the moot question is: why the nation has been embarked on different types of economic reforms in the early 1990s. There is not even a single explanation, as both the process and the content of reforms since 1990s are due to a combination of factors.

Without going into the details of such factors, it can be specified that the economic reforms of India initiated in 1990s were necessary to make its policies and practices compatible with the changes in the global economic scenario. However, it is also true that the process of Indian economic reforms since 1990s can be described as sui generis. The components of reforms and the sequencing of policy measures were based on the situation and need. This is why there is a broad political consensus on the contours and process of economic reforms. There are differences of opinion, including the paths to be followed for achieving the basic objectives of reforms. Nevertheless, such differences are necessary because they provide the much-needed checks and balances and also help in generating public debate on policy measures and their implementation.

What is the impact of the new economic reforms? Over the last 15 years or so, the growth rate is better than before. New employment opportunities have been created, but a significant section of economically active population remains unemployed or newly unemployed. There is a reduction in percentage of population living in poverty. But, much more is required, if India is to achieve the most important Millennium Development Goal (MDG), then measures should be taken to halve extreme poverty by half, by the year 2015.

The significance of the National Common Minimum Programme (NCMP) lies here. It has several elements, which can help in achieving the above-stated and other MDGs. It has six basic principles of governance and one of them is ‘to ensure that the economy grows at least seven to eight percent every year in a sustained manner over a decade and more and in a manner that generates employment, so that each family is assured of a safe and viable livelihood.’

Taking into account the principles of Common Minimum Programme (CMP), it can be said that it has a long-term vision, which, given the right policies and their implementation, can provide a significant thrust to the process of economic reforms in order to achieve the following objectives:

• economic growth
• employment generation
• poverty reduction

Moreover, in order to adhere to these principles of governance and their prospects for economic reforms in India (so that this CMP can be made the foundation for another CMP – Collective Maximum Performance), it is necessary to take into account the following issues:

• There should be a broad political consensus on the CMP. Political parties should make use of platforms to express their views and concerns on CMP, its policy measures and their implementation. The Planning Commission of India should act as a platform for the national as well as at the state-level and district Planning Commissions should play respective roles at the sub-national level;
• The role of the states regarding the policy implementation should be made clear. The CMP has several elements on which the states are to play a major role and there should be policy coherence. These issues are to be discussed at the National Development Council (NDC). The CMP has pledged to make the NDC ‘a more effective instrument of cooperative federalism.’
• There should be a broader public debate on CMP and its implications on people’s livelihoods. Regular debates between and among multiple stakeholders are required for cross-fertilisation of views and experiences on the implementation of CMP. There should be a mechanism in place to provide regular feedback to policy-makers at the sub-national and national level. This would not only help in achieving better policy coherence but also in understanding the implications of policy implementation.

Thus, for achieving the objective of economic growth, employment generation and poverty reduction, it is necessary to provide momentum to the process of economic reforms in India, as set out in the CMP. Only then, the true intent and purpose behind the economic reforms will be realised, which will, in turn, facilitate that the benefits of economic reforms are percolated to the needy and vulnerable sections of the society. That alone would create confidence in the mind of the common man about the ongoing economic reforms.

The objective of this seminar is to understand the roles and responsibilities of different stakeholders. Towards this endeavour, the Consumers Guidance Society of India (CGSI), in partnership with Consumer Unity and Trust Society (CUTS) had organised a one-day Regional Seminar on the Common Minimum Programme at Vijayawada, on August 6, 2005.

• CMP is not a comprehensive document. It needs to be improved.
• CMP is not inclusive of aspects arising out of WTO-related changes within India
• There are divergent opinions on whether India should be a part of WTO.
• UPA coalition partners also do not agree completely on the CMP. Thus, the words ‘common’ and ‘minimum’ become questionable.
• Farm, rural non-farm and informal sectors are under severe strain for different reasons. Suicides by different sections, and not just farmers, are an indication of such trends.
• Social security and welfare programmes are a must in Indian conditions and context.
• There are divergent views on which is the best delivery system – public or private sector.

Regional Seminar on
‘National Common Minimum Programme (NCMP) and Its Prospects on Economic Reforms’
August 24, 2005, HCM-RIPA, Jaipur

CUTS Centre for Consumer Action, Research & Training (CUTS-CART), Jaipur organised a daylong Regional Seminar on the ‘National Common Minimum Programme (NCMP) and Its Prospects on Economic Reforms’ on August 24, 2005 at Patel Bhavan, HCM-RIPA, Jaipur in association with the Friedrich Ebert Stiftung, New Delhi (FES India). This seminar was third in the series being organised in the country.

Objectives
The objectives of the seminar were aimed:

• To take stock of various aspects of the NCMP, with emphasis on issues relating to economic reforms and development;
• To discuss concerns and necessary actions of different stakeholders for achieving better coherence between policy formulation and implementation; and
• To contribute towards a networking platform to stakeholders in order to discuss issues of mutual interests and build partnership between and among different stakeholders.

In the inaugural session, Mr. R.K. Sharma, CUTS International, Jaipur presented preliminary address providing a brief background about the series of seminar, outlined the objectives of the seminars, and explained how the effective participation from various stakeholders could lead to a better implementation of NCMP that eventually help in improving economic conditions in the country.

Mr. Pradeep S. Mehta, Secretary General, CUTS International, Jaipur laid emphasis on the economic challenges of the country, especially the poverty reduction. He pointed out the lack of consensus on issues related to NCMP for example, government’s decision to increase investment in agriculture sector, to which it is vital to know public perceptions. Mr. Mehta stresses the need for slashing unusual expenses and utilizing the allocated budget adequately for the implementation of various schemes.

Highlights of the Discussions

Mr. Manish Agarwal, CUTS International, Jaipur presented the briefing “The Economic Substance of the CMP’ tracing the emergence of NCMP, which lied in the backdrop of ‘Bharat Udai’ slogan of previous NDA government. Pointing at the UPA government’s stress upon 'Economic Reforms with Human Face' and economic reforms along with increase in employment opportunities, Mr. Agarwal felt the need for an effective competitive environment in the market as well as social security, which ultimately benefits the consumers.

Mr. T.C.A Srinivas Raghavan, Senior Journalist on Economic Issues, Business Standard presented the Introductory Statement-1 titled “Stimulation of Social Welfare by Economic Policies” in which threw light on implementation hiccups under NCMP calling it a costly undertaking, and underlined the role of public in building consensus amongst the political parties. He mentioned the flaw in the Employment Guarantee Act, which does not ensure employment for all 365 days of the year.

Mr. Bipul Chatterjee, CUTS International, Jaipur addressed the Introductory Statement-II titled “Does Trade Contradict Protection of Domestic Industries?” exploring the relation between productivity and workers calling for an effective way of implementing the programme. He laid special emphasis on ‘Right to Information’, which addresses the need for disseminating appropriate information to the common man, and stressed the need for creating a healthy association of the people with the reform process, if development has to be take place.

In “Reports From the Working Groups” session, two topics were discussed. Under Group A title “Structural Reforms of Agriculture”, the group offered the key recommendations in the agricultural reforms on adequate irrigation network and its management pointing out the need for increase in land size, application of modern techniques, use of bio-manure, suitable warehouse facilities, high quality seeds and rapid promotion of horticulture and herb cultivation, agricultural insurance schemes, price fixation, and transparency including increasing investments in the agriculture sector and facilitation of agriculture issues at WTO etc.

The participants from Group B analysed “Structural Refortms of Informal Non-farm Sector” putting emphasis on production based wages; strengthening of the institutional arrangements; effective marketing support system/channel for agri-products sale; effective implementation of labour laws; widening the social security system; finance for self-employment (reliable data base) and to have greater involvement of NGOs/CSOs etc.

Dr. Ashok Bapna, Director IIILM Academy of Higher Learning, Jaipur discussed the Statement-I titled “Do Economic Reforms Contradict Social Care” and exposed lacunae in the economic reforms that failed to eradicate social ills, such as child marriages and female feticide. He advocated for economic reforms as well as social reforms to go side by side and to be properly implemented. Dr. Bapna questioned as to how poverty could be related with competition, when it has been found that competition would never allow poverty to be removed. He further stressed the need for finding the ways to establish a meeting point for simple economy and rural economy.

Dr. Arbind Sinha, Head, Department of Management (Marketing), Yagyavalka Institute of Technology, Jaipur debated the Statement-II titled “Social Security as an Advantage of an Economy” reasoning the Common Minimum Programme not to be the common man's programme. He stated that only by generating good revenue through economic reforms the social security could be ensured and by creating an enabling environment in the country the process of development could be achieved.

In the General Debate session, the participants took part in discussing the topic “Pro-poor Economic Reforms”. The session started with a serious note in which the participants raising pertinent questions on corruption, which does not allow of the programmes to see the light of success; expressing concern over ensuring a public participation in development in a corrupt environment, and casting doubts that in a successful economy, whether the market will control the government or the government will control the market. Then the question of accountability came in for serious discussion, which is necessary for effective implementation of ‘Right to Information Act’.

Amidst interest and concern, the participants discussed crop insurance system, infrastructure, such as water scarcity, higher rates for electricity and cooking fuel to the farmers and right price for crop etc.

However, the most serious matter was the persistence of poverty and the poor, which the government claims to have been reduced but the number of poor and budget size for poverty reduction programmes present a different story, and the Panchayati Raj Institutions have not been really entrusted the responsibility of effective implementation of NCMP.

CUTS Centre for Competition, Investment & Economic Regulation (CUTS C-CIER) supported the organisation of a training workshop on issues related to competition and consumer protection for Vietnam consumer representatives on August 22-23, 2005, within the framework of its project entitled, ‘Advocacy and Capacity Building on Competition Policy and Law in Asia’ (7Up2 Project). The workshop focused at building the capacity of Vietnamese consumers whereby they could understand issues related to competition policy and law and consumer protection; and on that basis, identify various unfair and anticompetitive practices s; and seek redress accordingly in the Vietnamese context. To foster public acceptance and support to aid the effective implementation of the Competition Law 2004 of Vietnam, the workshop helped the participants by inculcating the spirit and content of the Law among widespread consumers. About 30 participants, including officials from the Vietnam Competition Administration Department (VCAD), Ministry of Trade attended the workshop.

This training workshop was one of the first in a series of capacity building campaigns on competition issues in the Asian developing economies being organised by CUTS C-CIER.

Circle-level Orientation of CUTS-FES Power Sector Reforms (Phase-II)
Jaipur, Rajasthan, India, August 13, 2005

To energise the activities of the Phase-II of CUTS-FES Project on ‘Involvement of Consumers in Power Sector Reforms,’ daylong orientation workshops would be organised in 12 identified circles of Rajasthan, India, from June 18, 2005 to May 20, 2006. The fifth workshop, in the series, was organised in Jaipur, Rajasthan, India, on August 13, 2005.

The main objective of the programme was to facilitate an active involvement of the consumers in the power sector reforms.

7Up2 Project Interim Review Meeting
Hanoi, Vietnam, August 16-17, 2005

The Interim Review Meeting for the project entitled, ‘Advocacy and Capacity Building on Competition Policy and Law in Asia’ (7Up2 Project), was organised by CUTS Centre for Competition, Investment & Economic Regulation (CUTS C-CIER) in Hanoi, Vietnam on August 16-17, 2005. The project aims to advance an enabling environment for competition law and policy in Cambodia, Lao PDR, Vietnam, Bangladesh, Nepal and India.

Le Danh Vinh, the Vice minister of Trade of Vietnam delivered the inaugural address and also contributed vital inputs to the discourse in the following sessions. Experts from all over the world – including representatives from donor agencies, such as State Secretariat for Economic Affairs, Switzerland (SECO), Swiss Competition Commission (COMCO) and Department for International Development (DFID) attended the review meeting. Among the other prominent experts in the area of competition and regulation were Frederic Jenny, a Judge in the French Supreme Court and William Kovacic, an eminent competition scholar and professor at the George Washington University, US. The serious deliberations over the two-day review meeting were extremely fruitful in addressing a clearer view of the direction the 7Up2 project must take in its second phase – that of advocacy and capacity building.

Training Workshop on M&As Investigative Skills for Vietnam Competition Officials
Catba, Haiphong, Vietnam, August 13-14, 2005

CUTS-CCIER organised a ‘Training Workshop on Mergers & Acquisitions (M&As) Investigative Skills for Vietnam Competition Officials,’ which comes within the framework of its project entitled, ‘Advocacy and Capacity Building on Competition Policy and Law in Asia’ (7Up2 Project) at Catba, Haiphong, Vietnam, on August 13-14, 2005.

Seven experts from the competition and M&As investigations disciplines were invited for the training session including– John Preston, DFID, Joong-weon Jeong, Korea Fair Trade Commission, George Lipimile, Zambia Competition Commission, Al-Muatasem Khair Ad-Deen, Jordinian Competition Directorate, Sitesh Bhojani, Barrister and Consultant and former Commissioner of the Australian Competition and Consumer Commission, Patrick Krauskopf, Swiss Competition Commission (COMCO) and Hank Spier, Spier Consulting, Australia.

Designed as a blend of theoretical analyses and hypothetical case studies, the training workshop, drawing on the first-hand information and varied experiences of several competition authority officials and practitioners, focused to build an applicable and effective approach for the young competition regime in Vietnam.

There were about 30 participants from the Ministry of Trade, Vietnam. The training session was very useful in addressing the need for proper enforcement of the newly enacted Competition Law 2004. It was designed as a blend of theoretical analyses and hypothetical case studies, and drew upon the varied experiences of the experts coming from more mature competition authorities. However, it was realised that the Vietnamese Competition Law is unique and the Ministry of Trade must learn, with time, through its own experiences.

National Consultation on Competition Policy and Law in Namibia
Windhoek, Namibia, August 16, 2005

The First National Reference Group (NRG) meeting of the Namibian component of the project, ‘Capacity Building on Competition Policy in Select Countries of Eastern and Southern Africa’, (7Up3 Project) was organised by Namibian Economic Policy Research Unit (NEPRU) on August 16, 2005. NEPRU, which had been selected earlier as the research partner for Namibia for the 7Up3 project, is also given the responsibility of the advocacy activities, as efforts to arrange for a separate advocacy partner (a role to be played by an NGO or consumer organisation) were not successful.

The meeting was attended by about 20 participants comprising of senior officials from the Ministry of Planning, the private sector, non-governmental organisations (NGOs), regulatory authorities, and the media. Dirk Hansohm, Director of NEPRU opened the meeting with a brief idea of the need for an appropriate competition policy from the perspective of economic development. Sajeev Nair, Director, CUTS Africa Resource Centre, based in Lusaka, Zambia participated in the meeting as CUTS representative, and elucidated the role of the NRG members to the participants.

Most of the discussions were based on the preliminary country paper (PCP) on the competition regime in Namibia, was prepared and presented by Rehabeam Shilimela, Researcher from NEPRU.

During the discussion that followed the presentation of the PCP, there was a detailed brainstorming on the subject, which centred round the necessary changes required in the competition legislation of the country, the process of implementation of the competition law, independence of the competition authority, and evolution of an umbrella competition policy framework under the Southern African Customs Union (SACU).

It was also felt by the participants that there was a need to establish a credible consumer organisation in the country.

Second Round of Retreat on Regulatory Autonomy and Accountability
New Delhi, India, July 23, 2005

Regulators need to be given sufficient autonomy to ensure that they take judicious decisions in a competent manner and are made accountable and answerable for their actions and performance. With the view to facilitate better understanding among key stakeholders, CUTS Centre for Competition, Investment & Economic Regulation (CUTS-CCIER) envisaged to organise rounds of discussions on the key aspects of regulatory autonomy and accountability in India. The objective of these rounds of discussions is to establish a consensus on this issue.

Against this background, a retreat on ‘Regulatory Autonomy and Accountability’ (second in the series of three) was organised at the India Habitat Centre, New Delhi, on July 23, 2005.

The first, in the series, was organised successfully at New Delhi, India, on May 7, 2005.

For further details please contact:
Vinayak R Pandey
CUTS C-CIER
D 217 Bhaskar Marg, Bani Park,
Jaipur –302016, India
Ph: +91 141 228 2821
Fx: +91 141 228 2733
Cell: +91 98292 85932
Email: c-cier@cuts.org, vrp@cuts.org

GRANITE Outreach Meeting
West Bengal, India, July 22, 2005

The second outreach meeting of the ‘Grassroots Reachout and Networking in India on Trade & Economics’ (GRANITE) project was successfully organised in Nadia district, West Bengal, India, on July 22, 2005. The objective of the meeting was to bring the artisans from the handloom sector on a common platform where they could share their present livelihood concerns.

The artisans articulated their problems with the financing and marketing of their products. This dual problem has forced them to work as bonded labour under the money-lenders (mahajans).

For further details please contact:
Mita Dutta

Circle-Level Orientation of CUTS-FES Power Sector Reforms (Phase-II)
Kota & Alwar, Rajasthan, India, July 11 & 23, 2005

As part of the activities of the Phase-II of CUTS-Friedrich Ebert Stiftung (FES) Project on 'Involvement of Consumers in Power Sector Reforms,’ daylong orientation workshops will be organised in 12 identified circles of Rajasthan, India, from June 18, 2005 to May 20, 2006. The third workshop, in the series, was organised in Kota, on July 16, 2005, and fourth in Alwar, on July 23, 2005.

The major objective of the programme was to facilitate an active involvement of the consumers in the power sector reforms.

For further details please contact:
George Cheriyan

Girl Child Education and Motivation Campaign
Chittorgarh & Bhilwara, June 15 to August 31, 2005

For encouraging girl child education programme, CUTS Centre for Human Development (CUTS-CHD) is organising “Girls’ Child Education and Motivation Programme” from June 15 to August 31, 2005. The programmes aim at associating children, especially girls of the age group 6 to 14, and ensuring their stability in educational institutes.

For further details please contact:
George Cheriyan

‘Hum Bhi Bachche Hain’ - Project on Child Domestic Workers
Launch Meeting Report, July 27, 2005

CUTS Centre for Consumer Action, Research & Training (CART), Jaipur in partnership with Save the Children (UK) has conceptualised a unique project entitled ‘Hum Bhi Bachche Hain’ (we too are children) on child domestic workers. The project was formally launched at Jaipur on July, 27, 2005 in a meeting at Patel Bhawan, HCM-RIPA, Jaipur by Principal Secretary Department of Women & Child Development (DWCD), Government of Rajasthan, Ms Alka Kala. About 75 participants - government officials, teachers and students from selected schools; representatives of donor agencies/civil society organisations working on child issues, representatives of social organisations etc. participated in the event.

Attitudinal change is an important factor in reducing incidence of children as child domestic help and addressing other child issues, said Alka Kala, while delivering the inaugural address. She also shared the Kerala experience of how high level of education resulted in decreasing infant as well as maternal mortality rate. She highlighted the fact that child development is the key factor for countries in development.

Dr. Lakshmi Rani, National Project Manager of Save the Children (UK), spoke about the progress made under the project in different states of India – Maharastra, West Bengal, and Jharkhand. She also said that it is matter of satisfaction that Jaipur city is also becoming part of the national advocacy campaign through this project.  

George Cheriyan Asst. Director CUTS, introduced the project and shed light on its objectives and plan of action for the year from July 2005 upto June 2006. He also presented a roadmap for sustaining the project beyond the project period. He further said the project would be implemented through 35 selected schools in Jaipur City using a child-to-child approach in close collaboration with the departments of Education, Social Welfare, Labour, Women & Child Development, Government of Rajasthan. 

Mr. Dharmpal S. Choudhary, Programme Director of National Child Labour Project (NCLP), while delivering the valedictory address, explained various government programmes aiming at prohibition and rehabilitation of child domestic workers and spoke about child labour in a wider perspective. He said that the state and central government is determined to make the country free of child labour.

Child domestic workers, as the term implies, are children working in homes. These are children working for wage in cash or kind, outside their families in domestic chores and not for commercial purpose. They are within the households of employers and thus are invisible to public scrutiny. India employs the largest number of working children in the world. Every third household in India has a working child. A survey states that 17 percent of domestic workers in India are under 15 years of age and forty percentage of them are girls. Though the problem is so serious, in many cities in India there is no official data/record about the gravity and vastness of the issue.

The main purpose of the CUTS-CART project is to understand the issue and generate awareness about ‘child domestic workers’ through schools in Jaipur. The project also aims at advocacy at the state level, involving different stakeholders, to make it compulsory for all schools in the state to check and the government to prevent child domestic work. Capacity building of the schools to carry on the activities beyond the project period is envisaged.

KC Sharma of CUTS-CART, explained different activities under the project. Mr. Dharmendra Chaturvedi of CUTS-CART proposed the vote of thanks.

Contact Person:
George Cheriyan

CUTS Africa Resource Centre (CUTS-ARC), in collaboration with Civil Society Trade Network of Zambia and Organisation Development and Community Management Trust (ODCMT), Zambia organised a three-day workshop entitled: ‘Pre-Hong Kong LDC Civil Society Consultative Forum,’ in Livingstone, Zambia, on June 23-25, 2005.

The objective of the Civil Society Consultative Forum was to analyse the Doha Development Agenda (DDA) of the World Trade Organisation (WTO) and the key trade and development issues of least developed countries (LDCs) and to provide inputs to the LDC meeting as well as the 6th WTO Ministerial to be held in Hong Kong, in December 2005.

The civil society consultative suggested that the 6th WTO Ministerial meeting should adopt pro-poor trade policies that are guided by global commitments to sustainable human development and poverty eradication. The Forum urged the LDCs’ Ministers to promote national efforts to sustainable human development and attainment of the Millennium Development Goals (MDGs). Further, to recognise the importance of debt cancellation in releasing resources to social and economic development.

Contact Person:
Sajeev K S Nair

Workshop on Rational Use of Drugs
Jaipur, Rajasthan, India, June 25, 2005

CUTS has undertaken a project on ‘Consumer Awareness on Rational Use of Drugs’ with the support of World Health Organisation (WHO), and the office of the Drug Controller General of India. The project aims to build awareness among consumers (patients) on the rational use of drugs. It is being implemented in nine states in India and co-ordinated at the national level by CUTS Calcutta Resource Centre (CUTS-CRC). CUTS Centre for Consumer Action, Research & Training (CUTS-CART) is responsible for implementing this project in Rajasthan.

The project envisages in the first instance to ascertain the level of awareness of the common man on this issue, develop and test ‘Patient Information Material’ (PIM) enlisting and detailing the normative behaviour of a patient, and finally to give this PIM wide publicity across India.

Under the project, a Training of Trainers (ToT) was organised at Jaipur, Rajasthan, India, on 25 June, 2005. The training was imparted through various technical aspect of the subject. Besides, there were group discussions and presentations.

Contact Person:
George Cheriyan

Circle-level Orientation of CUTS-FES Power Sector Reforms – Phase-II
Sawai Madhopur, Rajasthan, India, June 18, 2005

As part of commencing the activities of the Phase-II of CUTS-Friedrich Ebert Stiftung (FES) Project on 'Involvement of Consumers in Power Sector Reforms,’ the first Nodal Circle-level training programme was organised in Sawai Madhopur, Rajasthan, India, on June 18, 2005. The major objective of the programme was to facilitate an active involvement of the consumers in the power sector reforms.

About 50 participants attended the workshop from the various blocks of district Sawai Madhopur. The workshop was coordinated by Deepak Saxena with the assistance of Dharmendra Chaturvedi. The well-organised event acquired a good media coverage.

Contact Person:
Deepak Saxena/Dharmendra Chaturvedi

CUTS-Calcutta Resource Centre (CUTS-CRC) organised one-and half-day workshop on ‘Access and Benefit Sharing and Prior Informed Consent,’ at West Bengal, Kolkata, on June 3-4, 2005.

The workshop was organised as part of the Centre’s project on Farmers’ Rights to livelihood to assess the needs for further work and intervention regarding the typical needs of mountain farmers.

The second phase of a project has been taken up as part of a pan-South-Asian initiative to augment the capacities of farmers, especially mountain farmers on the complex various trade issues that pose, or are likely to pose, a threat to their livelihoods and traditional ways of farming.

Contact Person:
Mita Dutta

The project entitled, ‘Linkages between International Trade and Human Poverty,’ is being implemented for United Nations Development Programme (UNDP), Asia & Pacific Regional Centre, Colombo. This project looks at the linkages between the international trade and poverty in Asia. The findings of the project will be used as inputs to the UNDP’s Regional Human Development Report (RHDR) for Asia and the Pacific, 2005, which will be published in the fourth quarter of this year. The outcome of the project will be published as a stand-alone publication of UNDP later this year.

In particular, the project tries to ascertain how international trade in an increasingly open and evolving environment affects different stakeholders. The important aspect of the project is that it looks at the international trade from the point of view of human development and poverty and not in terms of trade rules and procedures.

The methodology of the project comprises of obtaining feedback from the stakeholders through two stakeholder consultations held in February and June 2005 in New Delhi, and a field survey, which was carried out by the researchers of CUTS-CITEE in 13 countries of Asia-Pacific.

The feedback and perceptions of the stakeholders have covered the three main themes:

• livelihood and food security;
• generating and sustaining employment; and
• ensuring access to basic services.

Under these three main themes, there are several sub-themes that the project has dealt with. The sectors covered were agriculture, fisheries, textiles & clothing (T&C), short-term economic migration, outsourcing, tourism, energy, environment and health.

The project has taken into account both the income and non-income aspects of poverty, as they together determine a person’s capability to avail existing and future opportunities to secure a better livelihood.

The duration of the project is January-August 2005. The stakeholders were identified from the inputs provided by the representative stakeholders.

The survey is conducted in Bangladesh, India, Nepal, Pakistan, Sri Lanka of South Asia
and Cambodia, China, Indonesia, Lao PDR, Malaysia, Thailand, The Philippines, Vietnam of East and Southeast Asia.

The researchers interviewed more than 150 stakeholders in different countries during the survey. The interviews were taken with the help of a structured questionnaire. Other than specific and cross cutting issues, gender dimensions were also included in the questionnaire. The field survey has been intensive and qualitative in nature. On an average, five days were spent in each country for doing the field survey.

With the objective of further soliciting stakeholders views and perceptions, the Second Stakeholder Consultation was held at New Delhi, India, on June 1-3, 2005. The representatives were invited from 13 countries in the Asia-Pacific region.

The consultation provided significant inputs for the forthcoming Regional Human Development Report (R-HDR), which is essentially an advocacy document. A draft report of the field survey was presented and discussed at the second stakeholder consultation.

The stand-alone report to be published by the UNDP will be based on the results from the field survey, from the inputs provided by the representative stakeholders, outcome of the stakeholders’ consultations and existing literature (where necessary).

Contact Person:

Bipul Chatterjee/Punyrupa Bhadury

National Consultations on Competition Policy and
Law in Eastern and Southern Africa
May 25-31, 2005

CUTS Centre for Competition, Investment & Economic Regulation (CUTS C-CIER) is currently implementing a project entitled, ‘Capacity Building on Competition Policy in seven Countries of Eastern and Southern Africa’, popularly referred to as 7Up3 project. This initiative is being executed through a ‘partnership approach’ with selected partner organisations representing leading civil society organisations (CSOs) in the project countries: Botswana, Ethiopia, Malawi, Mauritius, Mozambique, Namibia and Uganda.

Leading CSOs from each of the project countries representing NGOs, research institutions, universities, consumer associations have been selected to undertake research on the prevailing competition regime in the respective countries, and advocate for the need to ingrain competition principles in the economic policies to develop ‘fair markets’ therein.

In the process, the project aims to develop the capacity of national stakeholders including policy makers, regulators, CSOs, academicians and the media to understand prevailing competition concerns from the national, regional and international perspective, and enable them to respond appropriately.

The implementation process incorporates national consultations in the countries, to identify a roadmap to move towards effective competition in the marketplace. In these national consultations, a group of diverse stakeholders, comprising the National Reference Group (NRG), are expected to provide their inputs and suggestions on brief essays (Preliminary Country Papers) prepared by the partners capturing the present status of competition in the respective countries, and suggest ‘the way forward’.

By the end of May 2005, national consultations (NRG meetings) were organised in the following four countries.

The response in these NRG meetings have been appreciable as these were able to stimulate discussions on competition-related issues in each of the countries among representatives from research institutions, regulatory agencies, universities, NGOs and other CSOs, before the presence of senior government officials from the Ministry of Trade and Industries (which looks after competition related affairs).

NRG meetings in the rest of the project countries would be organised in the month of June 2005.

Details about the project is available in the project webpage at: www.cuts-international.org/7up3.htm

Further queries can be sent to:

Rijit Sengupta
CUTS Centre for Competition, Investment & Economic Regulation (CUTS C-CIER)
D-217 Bhaskar Marg, Bani Park,
Jaipur- 302016, India
Ph: +91 141 228 2821
Fx: +91 141 228 2733/ 228 2485
Cell: +91 98292 85928
Email: 7up3@cuts.org, c-cier@cuts.org
Web: www.cuts-international.org

Workshop on Rational Use of Drugs
Chandigarh, India, May 26, 2005

Consumer Unity and Trust Society, in association with Consumers Forum, Chandigarh, organised a daylong workshop on the Rational Use of Drugs at ICSSR Complex, Punjab University, Chandigarh, on May 26, 2005.

The workshop was a part of the Consumer Awareness Generation Programme under the project of Rational Use of Drugs (RUDs) supported by the World Health Organisation (WHO), and Drug Controller Generals India Office to promote the notion of rational drug use by patients. The Programme started with the background and rationale behind the project and stressed that it intended to reach out to as many consumers as possible with the idea of proper use of drugs. The aim behind such an effort was not only to cut down on unnecessary costs, but also vastly improve the quality of healthcare.

The workshop tried to highlight issues like over-the-counter (OTC) drugs, doctor-Patient dialogue, proper storage and disposal of drugs, which were extremely important from the patient’s perspective. The Patient Information Manual prepared by CUTS was distributed to the participants with the hope that they would use the same to spread the message of rational drug use. Dr P Tiwari of National Institute of Pharmaceutical Education and Research (NIPER) gave a presentation on food-drug interactions and the importance behind proper storage of drugs, which were important chapters of the Manual. Dr Roma Uppal highlighted the technical aspects of rational drug use while Dr Anoop highlighted the dangers behind self-medication while indulging in OTC drugs.

The workshop ended with an interactive session where participants voiced their confusions and queries.

GRANITE Launch Meeting in West Bengal
Kolkata, West Bengal, India, May 13, 2005

CUTS Calcutta Resource Centre (CUTS-CRC) organised a State Level Launch Meeting of the project entitled: ‘Grassroots Reachout & Networking in India on Trade and Economics’ (GRANITE), in Kolkata, West Bengal, on May 13, 2005. This daylong programme was centred around the discussions on the issues related to globalisation, WTO, and their impact on the two most important sectors of the state: agriculture and textiles & clothing (T&C). Asish Ghosh, Eminent Policy Analyst and Director of a leading Policy Advocacy Group in West Bengal, Centre for Environment and Development, delivered the keynote address for the programme, which was followed by two panel discussions. The topics of the discussions were:

a) State agricultural policy, WTO and people’s livelihood
b) Should India’s textile policy be pro-cotton?

Well-known journalist and environmentalist, Jayonto Basu, moderated the session on agriculture and the speakers were Debal Deb, Director, Centre for Interdisciplinary Studies, Barrackpore, West Bengal and Swapan Ganguly from Paschim Banga Khet Majdur Sabha.

In the post-lunch session, Mita Duta, Coordinator, CUTS-CRC moderated the discussion on the textile sector and the speakers were Aalok Goswami, President, Embroidery and Garments Hi-tech Manufacturing Association, Kolkata, and Bani Saraswati, Secretary of Sreema Mahila Samity, a reputed CSO working in four districts in West Bengal.

The panellists expressed their concern about WTO. They were of the view that developing countries, like India, could surely reap the benefits from the process of globalisation, if they understand the issues properly and take appropriate safety nets at the proper time. Panellists as well as participants appreciated CUTS’ initiative of providing such a platform, the first of its kind in the state, where grassroots representatives could share their concerns among each other and also with the experts. More than 100 stakeholders, viz. representatives of the government officials, key Civil Society Organisations (CSOs), faculties of Universities, media, and representatives from research organisations, artisans and farmers associations from all over the state attended the meeting.

CUTS Centre for International Trade, Economics & Environment (CUTS-CITEE), in association with the Friedrich Ebert Stiftung, New Delhi (FES, India) organised the regional seminar on Economic Cooperation in South Asia at Hotel Taj Samudra, Colombo, Sri Lanka, on May 7-9, 2005. More than 50 participants from the entire South Asian region teamed up to articulate their experiences and lessons learnt on economic (trade and investment) cooperation among South Asian countries in order to develop appropriate policy responses. They represented civil society, academics, business chambers, government and inter-governmental organisations, such as United Nations Conference on Trade & Development (UNCTAD).

The theme of the seminar Centreed around South Asia’s position on global economic issues, its relations with other regional groupings and response to global economic developments. It also tried to outline how new initiatives, which had become an imperative, could be launched to enhance economic cooperation among the South Asian countries. The role of regional trade agreements (RTAs), such as SAFTA in the South Asian context was also an important focus area.

Saman Kelegama of Institute of Policy Studies (IPS), Colombo, while citing a recent World Bank (WB) report according to which this trade, compared to North-South trade, is a failure. On the contrary, he argued, there is enough evidence to show that South-South trade has increased. It is true that market access comes at a cost, but we must be on guard against efforts to divide the economic unity of South Asia.
There were other interesting observations at the meeting, like the assertion by A N Ram, former secretary of the Indian External Affairs Ministry, that South Asian Association of Regional Cooperation (SAARC) is a flawed concept. It was agreed to, he elaborated, without enough preparation, or studies to delineate the parameters. Ram presented six points:

• Economic cooperation must maximise inter-structural linkages where possible (road, rail and pipelines, etc);
• While promoting sub-regional cooperation, include Myanmar and Afghanistan;
• We should have bilateral Free Trade Agreements (FTAs), along with a common investment regime;
• South Asia should not ignore linkages with other regions;
• We should harmonise and coordinate policy on global issues; and
• Remember that economic cooperation can be beneficial for political issues.

Posh Raj Pandey, of United Nations Development Programme (UNDP), Kathmandu, said that the "sensitive" list has to be negotiated as well as the rules of origin (RoO). Provisions of SAARC Preferential Trade Agreement (SAPTA) make it clear that the agreement will go on to an economic union. Four issues were addressed at a recent committee meeting held in Kathmandu, including the issue of negotiating a sensitive list must be subject to a maximum list; various countries have placed various items under a negative list: Bangladesh 1,393 items, Bhutan 133, Nepal 927, Maldives 584, Sri Lanka 1,302, India 1,302 and Pakistan 1,214. The nutshell of Pandey's arguments was that unless institutional reforms are undertaken, SAPTA will not become successful and the services sector must be brought into the programme.

Abid Suleri, of Sustainable Development Policy Institute (SDPI), Islamabad, Pakistan, argued against SAARC's becoming an isolated trading bloc and for a better negotiation position with other established trading blocs – the need to get real stakeholders into negotiations rather than only government representatives, who tend to be over-protective about issues that relate to governments.

While discussing the special role of India in relation to SAARC, SAPTA and South Asia Free Tarde Agreement (SAFTA), Subhoranjan Dasgupta, of Institute of Development Studies, Kolkata, mentioned that as the giant, India can afford to be much more magnanimous. Only if India plays a constructive role, as it has done with Sri Lanka, its possible bilateral agreements with China and Thailand will not be viewed with suspicion. Indeed, if India makes a special effort to attain at least a part of SAFTA's aim, a broader pattern of regional cooperation can be woven by including bilateral agreements as well.

Ikram-ul-Majeed Sehgal, of Defence Journal, Karachi, stated that Regional Cooperation in South Asia will not only help increase the level of intra-regional trade among South Asian economies, but also integrate smaller economies into the larger regional economic space, thereby expanding the size of the market and facilitating cost reductions. Greater interaction is needed between civil society and the political class across the different countries of South Asia. This would contribute to a quicker settlement of the differences and a greater South Asian solidarity, which is essential for the progress and prosperity of all our people.

Ratnakar Adhikari, of South Asian Watch on Trade Economics & Environment (SAWTEE), Kathmandu, stated that if we look at the entire SAFTA Treaty Text, it appears that even the least developed countries (LDCs), like Nepal, Bhutan and the Maldives, did not have any say, while Bangladesh had a significant say during the drafting process of the Treaty. This is because most of the Special and Differential Treatment (S&DT) provisions are suitable to their needs. This issue, seen in conjunction with the hesitation of the developing countries to provide S&DT to the LDCs within SAFTA framework, only serves to reinforce the notion that trade liberalisation issue is not only politically charged, but also full of double standards.

Elaborating on the elements of social charter, Pravin Sinha, of FES India, pointed out that the Charter, no doubt, looks impressive with laudable objectives that are focused on larger issues of poverty and health, discrimination against women, lack of employment opportunities in particular for youth, child welfare, etc. The document, however, does not make mention of work and livelihood issues. It has also ignored the issues relating to workers/labourers and trade unions. Other omissions in the SAARC Social Charter includes: mention of labour rights member countries commitment to adhere to UN and ILO's Conventions, achievement of Millennium Development Goal (MDG) by the year 2015, etc.

M K Garg, of The Associated Chamber of Commerce & Industry (ASSOCHAM), Delhi, suggested that the SAARC Secretariat should review the implementation of the Social Charter at regional level, otherwise it will become a waste paper. There should be a mechanism for monitoring the implementation of the decision taken on convention adopted. The SAARC Secretariat should be empowered through committees to monitor it.
While discussing the preconditions for free trade in South Asia, Hemant Batra, SAARCLAW, Delhi, declared that in the contemporary competition it is next to impossible for a country to survive singularly, which is why trade is of paramount importance. Free trade increases competition and is a precondition for increased efficiency and higher living standards.

Summing up, Pradeep S Mehta, Secretary General, Consumer Unity & Trust Society, Jaipur said that Governments, the intelligentsia, the business community and the NGOs must all emphatically promote awareness about the need and advantage of regional cooperation. South Asia has great economic strength in terms of its market potential, rich natural resources and human capital. The need is to make SAARC a strong economic bloc, leaving aside bilateral disputes, as a significant amount of trade is already taking place through informal/illegal channels.

The delegates were unanimous in voicing that if SAFTA was to become a success, then the involvement of civil society and media assumed great importance. A buy-in of all stakeholders, not merely politicians or bureaucracy, was necessary to make trade a true vehicle for enhanced development within the region. If SAFTA was not a success as yet, it did not mean that one should re-invent the wheel and look for replacements. A more concerted effort riding the recent positive geo-political wave of goodwill was necessary in this effort.

The seminar emphasised that trade not only has to be free but also fair. Hence the social dimensions of trade had necessarily to be the driving force of any initiative. Enhanced trade would help in achieving the MDGs that formed the basis of any long- term development effort.

CUTS Centre for International Trade, Economics & Environment
D–217, Bhaskar Marg, Bani Park,
Jaipur 302 016, India,
Ph: +91(0)141-2282821
Fax: 91.141.2282485
Email: citee@cuts.org

Background

The decade of the nineties has seen a paradigm shift in the approach to economic management in India. Independent regulatory bodies have been established (and are being established) to perform functions that were hitherto being executed by the line ministry/department and to bring transparency, participation and consultation in the decision- making process.

However, the experience garnered thus far shows that there is lack of coherence in the regulatory framework that is sought to be established. There is no overarching view of how a regulatory body should function and how the regulatory process should work. In particular, the creation of independent regulators has raised fundamental issues concerning their autonomy and accountability, which remain largely unaddressed.

Regulators need to be given sufficient autonomy to ensure that they take judicious decisions in a competent manner. At the same time, regulators need to be made accountable and answerable for their actions and performance. Surely, independent regulators will be governing sizeable part of the economy (and public services) in coming years, therefore, institutional efficacy would reflect upon the quality of public life. In such case, we cannot afford leaving fundamental questions such as autonomy and accountability unanswered and unresolved.

Against this background, the retreat (first in a series of three) was organised to take up these fundamental issues before a heterogeneous group of opinion leaders to facilitate a serious debate and suggest measures to strike the right balance between autonomy and accountability to enhance the effectiveness of regulatory regimes. Besides Yashwant Sinha, Member of Parliament, who inspired the organisation of the retreat, participants included former regulators, retired judges, lawyers, consumer activists, academicians, journalists, and other experts.

S Sundar, of The Energy and Resources Institute (TERI), made a thorough power point presentation on the key issues concerning the retreat. The presentation, given at the end, formed the base for discussions that followed.

Following is a brief report on the outcome, in matrix format.