Uttam-da,

Citizens are not customers that once they have paid their fee (taxes) it is for 
the servants to manage the country. Citizens have duties too - not just rights.

***

That tax money should be used to contain
 these problems to business and society, if those can be contained at
 all, because, it seems from the article that the problems have multiplied

Umesh
 over the years.

uttam borthakur <[EMAIL PROTECTED]> wrote: Dilip Da
   
  Is not the present global economic system, after the debacle of socialism, 
supposed to be a cure- all to all problems that has beset the world community? 
Is there any scope of any intervention by any state, individual, group in the 
present system in the form of charity, subsidy, reservation, grant, trade 
barriers, etc. that are so antipodal to the basic tenets of the present day 
economy? The assumption of a free economy that sings paeans to free play of 
market forces must be taken to logical conclusion, there should not be any 
halfway house, as in hypocrisy.
   
  I agree with you. There should not be any charity, when the billionnaires 
have already paid taxes. That tax money should be used to contain these 
problems to business and society, if those can be contained at all, because, it 
seems from the article that the problems have multiplied over the years.

Dilip&Dil Deka  wrote:
  Question to you after you read the article below--
Do you think it is the responsibility of the business community to alleviate 
the misery in rural areas so that business may continue to function?

I agree any business of character must do charitable work for the community 
where they operate. But, do they now have to bear the total responsibility of 
social upliftment, and law and order? What happens to the tax money they pay? 

Yes, a few Indians are making billions of dollars. Even if they part with the 
billions for charity, will it solve India's problem of rural poverty? Will 
Maoism, ULFAism and other barriers to smooth business operation go away?

Dilip Deka
============================================================
Ram Narayanan wrote:
Here is a wake up call for all of us who are interested in India’s progress. 

Naxalite insurgency is spreading. (Please see BUSINESSWEEK article below). 

While the law enforcement machinery must be adequately strengthened, the real 
solution lies in addressing the issue of poverty of the tribals and of the 
other rural poor who inhabit some 200 districts of India that have been 
declared backward and where poverty levels are worse than elsewhere in the 
country. 

India’s business corporations have grown rich since the opening up of the 
economy -- there are many whose revenues exceed a billion dollars per annum and 
are continuing to expand their operations. 

If they will each care to adopt a few districts and focus singlemindedly on 
eliminating poverty, the naxalite movement can be marginalized in five years. 
The example of Byrraju Foundation set up be the Satyam group of companies to 
promote healthcare, education, and improve livelihood in remote villages, is 
one example of how Indian industry can go about transforming villages. The 
Foundation currently operates in 189 villages in 6 districts of Andhra Pradesh 
(http://www.byrrajufoundation.org/) . 

The urgent need is for India’s top companies (including all the mining 
companies) to join hands and adopt all the 200 backward districts, among 
themselves, and follow the Satyam or any other proven model of rural 
development. 

Will CII (Confederation of Indian Industry), FICCI (Federation of Indian 
Chambers of Commerce and Industry) and ASSOCHAM (Associated Chambers of 
Commerce and Industry) convene a joint action-oriented meeting to discuss and 
take action on this specific issue? 

I am aware that CII recently convened its annual meeting, where the issue of 
poverty was discussed. However, going by one leading commentator’s review, it 
looks like it was only a talking session, with a few good ideas thrown in. No 
specific India-wide action plan emerged from that meeting 
(http://www.indianexpress.com/story/305005.html). 

It’s tme the three powerful Indian business organizations take the initiative 
to convene a joint meeting specifically to take action on allotting the 200 
backward districts to India’s corporates and hold them to a time-bound 
poverty-elimination action plan . 

Please post your comments at http://usindiafriendship.blogspot.com/ 

Ram Narayanan 
US-India Friendship 
http://usindiafriendship.net/ 


http://www.businessweek.com/magazine/content/08_20/b4084044908374.htm?link_position=link1
 

BUSINESSWEEK 

MAY 7, 2008 

In India, Death to Global Business 
How a violent—and spreading—Maoist insurgency threatens the country’s runaway 
growth 

by Manjeet Kripalani 

On the night of Apr. 24, a group of 300 men and women, armed with bows and 
arrows and sickles and led by gun-wielding commanders, emerged swiftly and 
silently from the dense forest in India’s Chhattisgarh state. The guerrillas 
descended on an iron ore processing plant owned by Essar Steel, one of India’s 
biggest companies. There the attackers torched the heavy machinery on the site, 
plus 53 buses and trucks. Press reports say they also left a note: Stop 
shipping local resources out of the state—or else. 

The assault on the Essar facility was the work of Naxalites—Maoist insurgents 
who seek the violent overthrow of the state and who despise India’s landowning 
and business classes. The Naxalites have been slowly but steadily spreading 
through the countryside for decades. Few outside India have heard of these 
rebels, named after the Bengal village of Naxalbari, where their movement 
started in 1967. Not many Indians have thought much about the Naxalites, 
either. The Naxalites mostly operate in the remote forests of eastern and 
central India, still a comfortable remove from the bustle of Mumbai and the 
thriving outsourcing centers of Gurgaon, New Delhi, and Bangalore. 

Yet the Naxalites may be the sleeper threat to India’s economic power, 
potentially more damaging to Indian companies, foreign investors, and the state 
than pollution, crumbling infrastructure, or political gridlock. Just when 
India needs to ramp up its industrial machine to lock in growth—and just when 
foreign companies are joining the party—the Naxalites are clashing with the 
mining and steel companies essential to India’s long-term success. The threat 
doesn’t stop there. The Naxalites may move next on India’s cities, where 
outsourcing, finance, and retailing are thriving. Insurgents who embed 
themselves in the slums of Mumbai don’t have to overrun a call center to cast a 
pall over the India story. "People in the cities think India is strong and 
Naxalism will fizzle out," says Bhibhu Routray, the top Naxal expert at New 
Delhi’s Institute for Conflict Management. "Yet considering what has happened 
in Nepal"—where Maoists have just taken over the government—"it could happen
here as well. States, capitals, districts could all be taken over." 

Officials at the highest levels of government are starting to acknowledge the 
scale of the Naxal problem. In May a special report from the Planning 
Commission, a government think tank, detailed the extent of the danger and the 
"collective failure" in social and economic policy that caused it. The report 
comes five months after Prime Minister Manmohan Singh shocked the country with 
a candid admission: "The Naxal groups…are targeting all aspects of economic 
activity…[including] vital infrastructure so as to cripple transport and 
logistical capabilities and slow down any development. [We] cannot rest in 
peace until we have eliminated this virus." 

Why such rhetoric now about a movement that has coexisted with the rest of 
India for more than 40 years? One reason is the widening reach of the 
Naxalites. Today they operate in 30% of India, up from 9% in 2002. Almost 1,400 
Indians were killed in Naxal violence in 2007, according to the Asian Center 
for Human Rights. 

Collision Course 

The other reason for sounding the alarm stems from the increasingly close 
proximity between the corporate world and the forest domain of the Naxalites. 
India’s emergence as a hot growth market depended at first on the tech 
outsourcing boom in Bangalore and elsewhere. Now the world is discovering the 
skill and productivity of India’s manufacturers as well. Meanwhile India’s 
affluent urban consumers have started buying autos, appliances, and homes, and 
they’re demanding improvements in the country’s roads, bridges, and railroads. 
To stoke Indian manufacturing and satisfy consumers, the country needs cement, 
steel, and electric power in record amounts. In steel alone, India almost has 
to double capacity from 60 million tons a year now to 110 million tons. "We 
need a suitable social and economic environment to meet this national 
challenge," says Essar Steel chief Jatinder Mehra. 

Instead there’s a collision with the Naxalites. India has lots of unmined iron 
ore and coal—the essential ingredients of steel and electric power. Anxious to 
revive their moribund economies, the poor but resource-rich states of eastern 
India have given mining and land rights to Indian and multinational companies. 
Yet these deposits lie mostly in territory where the Naxals operate. 
Chhattisgarh, a state in eastern India across from Mumbai and a hotbed of 
Naxalite activity, has 23% of India’s iron ore deposits and abundant coal. It 
has signed memoranda of understanding and other agreements worth billions with 
Tata Steel and ArcelorMittal (MT), De Beers Consolidated Mines, BHP Billiton 
(BHP), and Rio Tinto (RTP). Other states have cut similar deals. And U.S. 
companies like Caterpillar (CAT) want to sell equipment to the mining companies 
now digging in eastern India. 

The appearance of mining crews, construction workers, and truckers in the 
forest has seriously alarmed the tribals who have lived in these regions from 
time immemorial. The tribals are a minority—about 85 million strong—who descend 
from India’s original inhabitants and are largely nature worshippers. They are 
desperately poor, but unlike the poverty of the urban masses in Mumbai or 
Kolkata, their suffering has remained largely hidden to outsiders and most 
Indians, caught up as they are in the country’s incredible growth. The 
Naxalites, however, know the tribals well and have recruited from their ranks 
for decades. 

Judging from their past experience with development, the tribals have a right 
to be afraid of the mining and building that threaten to change their lands. 
"Tribals in India, like all indigenous people, are already the most displaced 
people in the country, having made way for major dams and other projects," says 
Meenakshi Ganguly, South Asia chief researcher for Human Rights Watch, which is 
compiling a report on the Naxal movement. The tribals are supposed to be justly 
compensated for any land used by the companies, but the states’ record in this 
area is patchy at best. 

The Biggest Threat 

This creates an opening for the Naxalites. "If there is a land acquisition 
issue over a project, the Naxals come in and say, ’We will fight on your 
behalf,’" says Anami Roy, the director general of police for Maharashtra, the 
western state that has Mumbai as its capital. Upon his appointment to the post 
in March, Roy declared Naxalism to be the biggest threat to the state’s peace. 

For those who see things differently from the Naxalites, the results can be 
terrifying. In January in Chhattisgarh, a village chieftain, suspected of being 
a police informer, was kidnapped, mutilated, and killed with a sickle—an 
example to any of the villagers who dared to oppose the Naxals. Company 
executives talk sotto voce about how dangerous it is for a villager to support 
business projects. "No villager has the courage to stand up to the Naxalites," 
says one manager who is often in the region. The possibility of violence has 
contributed to the slow progress of many mining projects. Nik Senapati, country 
head of Rio Tinto, which has outstanding permits for prospecting in eastern 
India, knows the threat. "It’s possible to work here," he says. "But we avoid 
parts where there are Naxals. We won’t risk our people." 

The Naxalites often don’t hesitate to kill or intimidate their foes, no matter 
how powerful they are. Former Andhra Pradesh Chief Minister Chandrababu Naidu, 
who is credited with turning the state capital of Hyderabad into a tech center, 
narrowly avoided death at their hands. 

Targeting Cities 

But the Naxalites can offer their followers clear benefits. Lakshmi Jalma 
Khodape, 32, alias Renuka, a petite tribal from Iheri, Maharashtra, was just 15 
when she joined up. "I had no education," she recalls. "My father was a guard 
in the forest department. The Naxals taught me how to read and write." 
Eventually disgusted by the Naxals’ violence, Lakshmi surrendered to the state 
police and now lives under their protection. 

Undeniably, the Naxals are viewed as Robin Hoods for many of their efforts. 
"The tribals have benefited economically thanks to the Naxals," says human 
rights lawyer K. Balagopal, who has defended captured Naxalites in court cases. 
In Maharashtra, tribals pick tender tendu leaves, which are rolled to make a 
cigarette called a "bidi." Contractors used to pay them the equivalent of a 
penny for picking 1,000 leaves from the surrounding forest. The contractors 
would then take the leaves to the factory owners and sell them for a huge 
markup. But the Naxals intervened, threatening the contractors and demanding 
better wages. Since 2002 the contractors have increased the price to about $4 
per 1,000 leaves. 

According to the Institute for Conflict Management, the Naxalites are now 
planning to penetrate India’s major cities. Ajai Sahni, executive director of 
the Institute, says they are looking to encircle urban centers, find sympathy 
among students and the unemployed, and create armed, "secret, self-defense 
squads" that will execute orders. Their targets are the two main industrialized 
belts that run along the east and west coasts. 

That’s an ambitious plan, but the Institute estimates there are already 12,000 
armed Naxalites, plus 13,000 "sympathizers and workers." This is no ragtag 
army. It is an organized force, trained in guerrilla warfare. At the top, it is 
led by a central command staffed by members of the educated classes. The 
government also fears the Naxalites have many clandestine supporters among the 
urban left. The police have recently been rounding up suspected allies in the 
cities. 

Ready Recruits 

The Naxalites are already operating on the edge of industrialized Maharashtra 
state, about 600 miles from Mumbai. The litany of complaints from village women 
in Maharashtra’s Gadchiroli district is endless and is one reason the Naxalites 
find ready recruits here. The teachers don’t come to teach in the government 
school, and when they do, say local parents, they drink and gamble on the 
premises. In one village, the sixth-graders don’t know how to read and write 
despite the fact that the state pays teachers 20% extra for volunteering to 
work in Naxal-infested areas. In the civil hospital in Gadchiroli, poor 
villagers have to purchase all the equipment for treatment themselves, from 
scalpels to swabs. (The hospital says it’s well stocked.) "This is what happens 
in nontribal villages," says Dr. Rani Bang, a Johns Hopkins School of Medicine 
physician who runs a popular tribal hospital in the nearby forest. "You can 
imagine how bad it is for tribals." 

Despite the need to ease the tribals’ poverty and blunt the appeal of the 
Naxalites, New Delhi still treats the insurgency largely as a law-and-order 
problem. States like Chhattisgarh, whose ill-trained police force is 
overwhelmed, have unleashed vigilantes on the Naxalites and the tribals and 
given the force arms and special protection under the law. The vigilantes, 
called Salwa Judum ("Peace Mission"), have made homeless an estimated 52,000 
tribals, who have fled to poorly run, disease-infested government camps. 
Allegations of rape and unprovoked killings have dogged the Salwa Judum. 
Efforts to reach Salwa Judum were unsuccessful, but the state government has 
vigorously defended the group. 

The problem is so severe that, in March, a public interest lawsuit was filed in 
India’s Supreme Court by noted historian Ramachandra Guha, who demanded an 
investigation into Salwa Judum’s activities. The court granted the request in 
April. Guha himself is not sanguine about the state’s ability to address the 
Naxal issue. "The problem is serious, it is growing, our police force is soft," 
he says. "Thousands of lives will be lost over the next 15 years." 

Kripalani is BusinessWeek’s India bureau chief. 

________________________________________________ 



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