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Archive for August, 2013

UGLY HISTORICAL GERMAN BIGOTRY: Angela Merkel: Germany will become Islamic State!

Unknown-17Angela Merkel: Germany will become Islamic State!

Posted by EU Times on Sep 21st, 2010 

 

There has been a great influx of Israeli Jews welcomed to Germany at the invitation of the Merkel Government.  Does that make Germany a Jewish State! Please Read the Article below

 http://www.jweekly.com/article/full/8761/influx-of-soviet-jews-prompting-disputes-in-germany/

Chancellor Angela Merkel said that Germans have failed to grasp how Muslim immigration has transformed their country and will have to come to terms with more mosques than churches throughout the countryside, according to the Frankfurter Allgemeine Zeitung daily.

“Our country continues to change, and integration is also the task for society to deal with immigrants,” Ms. Merkel told the daily newspaper. “For years we’ve been deceiving ourselves about this. Mosques, for example, are going to be a more prominent part of our cities than they were before.”

Germany, with a population of 4-5million Muslims, has been divided in recent weeks by a debate over remarks by the Bundesbank’s Thilo Sarrazin, who argued Turkish and Arab immigrants were failing to integrate and were swamping Germany with a higher birth rate.

The Chancellor’s remarks represent the first official acknowledgment that Germany, like other European countries, is destined to become a stronghold of Islam.

In France 30% of children age 20 years and below are Muslims. The ratio in Paris and Marseilles has soared to 45%. In southern France there are more Mosques than churches.

The situation within the United Kingdom is not much different. In last 30 years, the Muslim population there has climbed from 82,000 to 2.5 millions. Presently, there are over 1000 mosques throughout Great Britain – – many of which were converted from churches.

In Belgium, 50% newborns are Muslims and reportedly its Islamic population hovers around 25%. A similar statistic holds true for The Netherlands.

It’s the same story in Russia where one in five inhabitants are Muslim.

 

Posted by EU Times on Sep 21st, 2010 

 

 

 

 

Chancellor Angela Merkel said that Germans have failed to grasp how Muslim immigration has transformed their country and will have to come to terms with more mosques than churches throughout the countryside, according to the Frankfurter Allgemeine Zeitung daily.

“Our country continues to change, and integration is also the task for society to deal with immigrants,” Ms. Merkel told the daily newspaper. “For years we’ve been deceiving ourselves about this. Mosques, for example, are going to be a more prominent part of our cities than they were before.”

Germany, with a population of 4-5million Muslims, has been divided in recent weeks by a debate over remarks by the Bundesbank’s Thilo Sarrazin, who argued Turkish and Arab immigrants were failing to integrate and were swamping Germany with a higher birth rate.

The Chancellor’s remarks represent the first official acknowledgment that Germany, like other European countries, is destined to become a stronghold of Islam.

In France 30% of children age 20 years and below are Muslims. The ratio in Paris and Marseilles has soared to 45%. In southern France there are more Mosques than churches.

The situation within the United Kingdom is not much different. In last 30 years, the Muslim population there has climbed from 82,000 to 2.5 millions. Presently, there are over 1000 mosques throughout Great Britain – – many of which were converted from churches.

In Belgium, 50% newborns are Muslims and reportedly its Islamic population hovers around 25%. A similar statistic holds true for The Netherlands.

It’s the same story in Russia where one in five inhabitants are Muslim.

 

Influx of Soviet Jews prompting disputes in Germany

by DANIEL DAGAN, Jewish Telegraphic Agency

 

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BERLIN — The influx of Jewish immigrants from the former Soviet Union into Germany is causing some fierce power and legal struggles — some of which are landing in German courts.

In some cases, the disputes have revolved around the Jewishness of the newcomers, but the main conflicts seem to center around the effects that absorbing the newcomers is having on the decision-making process in established German Jewish communities and in the election of Jewish officials.

The population of Germany’s Jewish community has more than doubled — to over 60,000 — in recent years as a result of a large wave of Russian immigrants.

German Jews, like most of European Jewry, are members of official local communities that are legally registered.

In the city of Hanover, for example, local Jewish activists accused Michael Fuerst, the longtime chairman of the community in the state of Lower Saxony, of relying on votes from non-Jewish newcomers to secure his position. The activists even questioned Fuerst’s Jewish origins.

In the end, a court decided several months ago to support Fuerst’s position and to re-establish him both as a community member and as the leader in the state.

In another more recent case, a group of newcomers from the former Soviet Union was excluded from the Potsdam community. The group, which calls itself the Association of Immigrants in the State of Brandenburg, challenged the exclusion and maintained that it was the only legitimate representative of the Jewish community there.

The established community’s chairman, Alexander Kogan, said the newcomers were excluded because they were not permanent residents of Brandenburg .

The immigrant group’s activists told the state government, local banks and other institutions that they were the only legitimate representatives of the community.

But a German court ruled earlier this month that the group of newcomers could not portray themselves as such.

The court’s decision has not ended the conflict. A lawyer representing the group has said he would explore the possibility of an appeal.

Another option for the immigrants, experts say, would be to register as a separate Jewish community in Brandenburg.

Non-Jewish residents of Potsdam can hardly understand why German courts have to deal with the burden of resolving the ongoing power struggle within the local Jewish community. “This is a very unfortunate situation,” a town official said, adding, “We would prefer not to be involved in this matter.”

For more JTA stories, go to: http://www.jta.org

 

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US Poodle Nawaz Sharif Does His Master’s Bidding on Shakil Afridi Issue by M.A.K.

 
How dare they overturn Shakil Afridi’s jail sentence. Shakil Afridi is a CIA agent who endangered the lives of Pakistani soldiers by divulging some information to foreigners, exactly what sergeant Bradley Manning and Edward Snowden did; and look what Bradley got, 35 years in jail incommunicado, never to be released alive. I say the same should be applied to Shakil Afridi. I am sure USA is bribing some people here. What is different between Shakil Afridi and Bradley Manning, pls compare yourself.
 
John Kerry, the US secretary of state, raised the issue of Afridi’s imprisonment when visiting Islamabad in July. Let us Pakistanis raise the issue of Sergeant Bradley Manning with Washington. Or do we not have enough balls.
 
M.A.K

 

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HIDDEN BEHIND THE HAREM WALLS: OPULENCE & DECADENCE

 

 

 

 

Removing the curtains of Arab harems IX

 

BY OPAW, ON SEPTEMBER 1ST, 2011

 

Removing Curtains of Arab Harems IXSexual perversions though prevail in most of the countries it is continuing in the Arab nations mostly behind the thick curtain. We definitely heard the sexual scandal between former American President Bill Clinton and Monica Lewinsky or similar scandal of the French or Russian President, but we definitely never heard how financially disadvantaged women from the Asian and East European nations are brought into Arab countries, to become sexual company of the oil-rich Arab sheikhs or monarchs. Many of the people in the world also are unaware of the dozens of untold stories of unfortunate Asian girls, mostly from Nepal, India, Bangladesh, Pakistan, Indonesia, Sri Lanka and the Philippines or the African girls from Tunisia, Egypt, Nigeria, Ethiopia etc, who are brought into harems of the ruling monarchs in the Arab countries, for being “deflowered” by the sex crazy Arabs. Most of the rich and affluent Arab sheikhs as well as members of the ruling royal families “deflower” as many as possible girls, before they marry an Arab girl. This culture is very much in practice in the Arab rich societies, which is considered to be a “test of vigor” of the men, before they marry an Arab female. During each of such “deflowering”, private celebrations are held inside the four-walls of the palaces, to rejoice the vigor of the male member of the privileged families. After the deflowering “ceremony”, these girls may either remain as “sex slave” of her “first man” for few weeks of months, or may be offered to remaining male members of the families, who would continue to abuse the girl for some time, thus finally letting the girl return to her home country with lost of cash in possession.

Taking the advantage of tremendous sexual luster of Kuwaiti males, some Filipina women have already established extremely discreet private brothels within various residential and non residential areas in Kuwait city. The matter is no secret, as it has been reported even in Kuwaiti media on a number of occasions. A Filipina national told media that Asian women are being lured and forced into prostitution in Kuwait. She accused the pimps of operating under the loop of an organized crime syndicate. The Filipina, who survived the ordeal, claimed that brothel owners prey on domestic helpers. Most of such brothels are located at Salmiya and Fahaheel areas. A Filipina woman, elderly woman who, is in her early fifties, operated a brothel located in Salmiya’s old souk. The woman was working for a company in The Avenues. Runaway domestic helpers who sought shelter in her house were sold to clients for 25-50 Kuwaiti dinars per night. These women were dressed inappropriately, forced to dance at private parties and engage in sexual acts. A Filipina pimp in Fahaheel, who claimed to take in her custody runaway domestic helpers said, “It is their choice if they want to engage in prostitution or not. I don’t force anyone to it. They came to me asking for help and shelter and I can’t feed them all and provide for their needs. So I merely suggest prostitution as an option should they want to earn and raise money to pay for their needs and work on their release from their employers. However, it is ultimately their decision to give me something from their income.”

In recent years, the Indonesian maids in Kuwaiti brothels have become the highest in numbers which is followed by Filipina, Sri Lankan, Bangladeshi, Nepalese, Indian and Tunisian women migrant workers. Most importantly, rights of housemaids, who are recruiting from many countries to Kuwaiti households, are not protected by local laws. This gives, ‘excellent’ opportunity to the employers in abusing the women in the worst-ever manner.

Salah Uddin Shoaib Choudhury

 

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The Story of How Pharmacist Musadak Malik, Jack of All Trades & Master of None, Got his Grove as Minister of Power through Nawaz Sharif’s Incompetence & Lack of Due Diligence?

 

 

 

 

You can fool all the people some of the time, and some of the people all the time, but you cannot fool all the people all the time.

Abraham Lincoln

MILLION DOLLAR QUESTION

This is the Oath of US Citizenship, Musadak Malik took, When he became a US Citizen. Has he renounced his US Citizenship? This is the Oath he took when he became a US Citizen. Does he  Owe Allegiance to US or Pakistan?

This is the oath Musadak Malik took, when he became a US Citizen: Naturalization Oath of Allegiance to the United States of America

 

Oath

“I hereby declare, on oath, that I absolutely and entirely renounce and abjure all allegiance and fidelity to any foreign prince, potentate, state or sovereignty, of whom or which I have heretofore been a subject or citizen; that I will support and defend the Constitution and laws of the United States of America against all enemies, foreign and domestic; that I will bear true faith and allegiance to the same; that I will bear arms on behalf of the United States when required by the law; that I will perform noncombatant service in the armed forces of the United States when required by the law; that I will perform work of national importance under civilian direction when required by the law; and that I take this obligation freely without any mental reservation or purpose of evasion; so help me God.”

 

The principles embodied in the Oath are codified in Section 337(a) in the Immigration and Nationality Act (INA), which provides that all applicants shall take an Oath that incorporates the substance of the following:

  1. Support the Constitution;
  2. Renounce and abjure absolutely and entirely all allegiance and fidelity to any foreign prince, potentate, state, or sovereignty of whom or which the applicant was before a subject or citizen;
  3. Support and defend the Constitution and laws of the United States against all enemies, foreign and domestic;
  4. Bear true faith and allegiance to the same; and
  5. A. Bear arms on behalf of the United States when required by the law; or
    B. Perform noncombatant service in the Armed Forces of the United States when required by the law; or
    C. Perform work of national importance under civilian direction when required by the law.

The language of the current Oath is found in the Code of Federal Regulations Section 337.1 and is closely based upon the statutory elements in Section 337(a) of the INA.

  • As citizenship fraud is a form of immigration fraud, there are several federal agencies that would investigate a citizenship fraud allegation. These agencies include the Federal Bureau of Investigation (FBI), the U.S. Citizenship and Immigration Services (USCIS), the U.S. Customs and Border Protection (CBP), and the U.S. Department of Homeland Security. The official homepages of some of these agencies are provided in the References section.

Read more: http://www.ehow.com/how_5646412_report-citizenship-fraud.html#ixzz2dPcHeSil

 

Nawaz Sharif is not a very bright fellow. However, he is a “Black-Belt,” in using people to his advantage. He depends on the advice of a few people (his Kitchen cabinet e.g.Sartaj Aziz, Ahsan Iqbal, Ishaq Dar, Pervez Rashid, and Khwaja Asif), who are much smarter than him and could run circles around him (without him knowing it). However, once in a while, a smooth talking shyster gets past him. A classic example of such a person is Musadak Malik, the so-called Advisor on Power  of all recent Prime Ministers. He is a US Citizen, who has not given up his citizenship. This Pharmacist turned dyed in wool power advisor and “Engineer”did a number on Nawaz Sharif and ended-up as an mover or shaker in the power sector. This incidence shows the absolute incompetence of Nawaz Sharif to tell the difference between an expert and a karela(bitter melon) or for that matter a gongloo(turnip).

Here is the real story of Musadak Malik sent to us from USA by a Mr.Ali, Key Member of The Pakistan think Tank Organization. Please Read and Weep, as we did.. .Editor  PTT

Of the three fraudulent appointments,  Shujaat Azeem because of intervention of Armed Forces has been made to resign. However Supreme Court on the other hand despite severe negative sentiments developing with every passing day and  being openly expressed  by the people at all the levels against the appointments of such fraudulent and dubious people on such important portfolios where billions of rupees of this poor country shall be at stake, is quite, as if nothing is happening around.  
 
The silence adopted by supreme court  on such a serious matter is also not meaningless,  it is apprehanded  that at the end of the day, as expected both of these known crooks  will get a clean chit from our Chief Justice, being hand in glove with PML-N government. The most unfortunate part of happenings in the country is that  because of the dubious actions of the Supreme Court, peoples has started loosing faith on the Judiciary as well.
 

Dated:2013-4-24

PRESS RELEASE

 

Government of Pakistan
Ministry of Water and Power

PRESS RELEASE
 

                                                                                                                                           Islamabad, 24th April

Federal Minister for Water and Power Dr. Musadik Malik has said that the government would fully cooperate with IPPs to run the power plants on maximum capacity and resolve their problems on priority basis.

    He made these remarks while presiding over the meeting with the heads of the independent power producers established under 2002 policy here today to review the power generation and allied matters. The meeting was attended by Secretary Additional Secretary and Joint Secretary of the Ministry, MD NTDCL, MD PPIB and other senior officials of the Ministry, NTDCL, WPPO and PPIB.

    The Minister appreciated the role of IPPs in the power sector and said that the government is planning to generate maximum electricity from efficient plants instead of inefficient plants by ensuring supply of oil and gas to them. He said that energy crises is a national crisis and we have to resolve it by cooperating each other. He said all we know that the power crisis is affecting all walks of life. Our industry is facing difficulties due to severe power outages, exports are coming down and threats of unemployment. Mr. Malik said that the Ministry has requested the government for release of Rs 150 billion  for payment to power companies in order to ease the crisis. The Ministry of Petroleum has also been asked for supply of additional 150 mmcfd gas to power plants. He said that we are optimistic that the load shedding issue can be resolved by taking right steps. 

    He sought cooperation from the IPPs and proposed that if agreed by IPPs, the government would provide oil to the more efficient private power plants for 60 days in return of full capacity generation of their plants. This would help to increase the generation by 500 mw. The supply of 150 mmcfd gas would also help to increase power generation by 550 mw. Both the steps would reduce the gap between demand and supply and reduction in load shedding. The government is also taking steps to improve the efficiency of the Gencos, he added. 

    Earlier, the IPPs representative one by one briefed the meeting on their problems and their out standing dues. They also gave suggestions to improve the power generation and assured to cooperate with the government to reduce the energy crisis. They also asked the Ministry for early payment of their out standing dues. They also thanked the Minister for convening the meeting to resolve the energy crisis as well IPPs problems. ENDS.     

 

 

 
 
Ali.

 

Fatmi, Mussadaq, Shujaat Azeem under scrutiny

Three out of four Advisors and Special Assistant to Prime Minister Nawaz Sharif—Capt (Retd) Shujaat Azeem, Tariq Fatmi and Mussadaq Malik– are under judicial or public scrutiny for various charges.

Advisor on Aviation, Shujaat Azeem was probed about dual nationality during a judicial inquiry at the Supreme Court. Shujaat Azeem was already under scrutiny for a conflict of interest case. As Aviation head, he supervises the construction of Islamabad Airport whereas his own company is one of the beneficiaries.

Shujaat Azeem, who was also close to Pervaiz Musharraf, is being rewarded by Nawaz Sharif for his role in getting the Prime Ministry out of Pakistan by brokering a deal with the Saudis. His brother, Tariq Azeem, has also been adjusted in the PML (N). Shujaat was already giving the impression as if he was given the charge to remote control PIA also. But he has been charged of having a Canadian nationality. If true, this might put his job at stake.

Tariq Fatmi has been charged of still working for the oil and gas giant Unicol. He is accused of doing two job as the PM’s Advisor on Foreign Affairs as well as at Unicol. According to media reports he is on leave from Unicol and has not resigned. Also, this may cause a conflict of interest. Unicol is notorious for trying to promote Turkemanistan-Afghanistan pipeline, and in the process flirting with Taliban in its heydays. This also brings his influence on policies, particularly the Iran gas pipeline in conflict. How could we trust somebody for an independent policy when he was on the payroll of a dubious firm. The issue is bound to come up for discussion in the Parliament soon, where, by the way, he has got his wife nominated as MNA on women quota.

 The most controversial, however, is Mussadaq Malik, the Special Assistant on energy. This pharmacist-turned development expert turned energy expert, among other things, is also being questioned over dual nationality. He lived in the US for decades and may have acquired the US nationality. This may cause another irritant for him besides several questions about his being there in the energy business. 
 
 

INVESTIGATIVE REPORT: PAKISTAN HIRES UNEMPLOYED PHARMACIST TO SOLVE ENERGY PROBLEMS: MUSADIK MALIK, AN AMERICAN IMPORT, WHO FAILED TO FIND A JOB IN AMERICA

You can fool all the people some of the time, and some of the people all the time, but you cannot fool all the people all the time.

Abraham Lincoln

Musadik Malik, a Pharmacist from Boston, has fooled mediocre and incompetent power elites of Pakistan and ended-up holding a key position in Pakistan’s Ministry of Water & Power.

There are many Pakistanis who are jobless in America. They are very hard working and extremely talented people but have fallen on hard economic times.

But, there are a few exceptions among them. These include those who hail from well-connected families of Pakistan, the so-called Waderas, Zamindars, Industrialist, Bureaucrat, and Jagirdars,

Johnnies like Musadik Malik surviving in US,  always have a Plan B.

Plan B is the fall back position for unemployed  progeny of Pakistan elites in US. They use their connections with the high and mighty in in Pakistan to land on their feet not in US but in Pakistan

A classic case is that of Masadik Malik.

He was unemployed in US for a long time, because he had a Ph.D degree in Pharmacy tooo high a qualification to work in a neighbourhood drug store. At that  time there was a glut of B.Pharms in the US job market. Therefore doctorates were considered over-qualified.

Musadik Malik tried every possible approach to keep his head above water but still could not find a job in Boston, Massachusetts or for that matter anywhere else in US

He followed through with Plan B and using his connections in UAE he landed on his feet. And founded a nebulous company by the name of DNA. This was a paper company, where, he wanted to pad his resume.

 

Musadik Malik Gift for Gab or as they say in American slang, a tendency to Bullshit

Any forum, where Musadik Malik can talk he finagles his way into it. 

He is full of form, but has no substance

Musadik Malik utilizes his gift for gab to climb the career, as well as the social ladder., or as they say in US, he is a “Bullshit,” Artist. He right away found an advisory position in the “gang that could’nt shoot straight, cabinet of the Mir Hazar Khan Bijarani. But, since there is no Ministry for Pharmacist, Musadik thought it convenient to try for the Ministry of Power.

So, Musadik Malik, a US Citizen did not renounce his US citizenship and ended-up according to his self-promotion Website:http://dnahealthcorp.com/pages/musadik_malik

Appointed Federal Minister, Water and Power of the Pakistan Government in April 2013, Musadik Malik is also CEO and Managing Director of the Boston Innovation Group based in Bahrain. – See more at: http://dnahealthcorp.com/pages/musadik_malik#sthash.dNp8uzpd.dpuf

Musadik Malik’s greatest asset is the Art of Bullshit. He uses his gift of gab to advance not only his career, but also, his social status 

In Pakistan, he developed his own neural network of connections among the power elites. he hit the jackpot with the senile PM Mir Hazar Khan Bijarani with whom he latched on using his charm and gift of gab.

When the Pakistan Government was being transferred from Mir Hazar Khan Bijarani to Nawaz Sharif, Musadik Malik had to give a presentation on the achievements and plans of his portfolio. Well, that became his direct entry into the

inner circle of power in Pakistan.  Nawaz Sharif, who has a knack for choosing hacks (because as they say, “it takes one to know one,)”became a fan of Musadik Malik’s “Bullshit.” The rest is history, and folks that is how

Pakistan got a pharmacist to solve its humungous load -shedding problems.  

This also demonstrates the calibre of leaders Pakistan has produced, as Prime Ministers. Likes of Gilani were followed by Bijarani, who in turn is followed by the three timer himself, none other than the Coward of Kargil, Nawaz Sharif a.k.a. Bhagora.

Incompetent Nawaz Sharif, could not find a single electrical engineer, among the thousands in Pakistan to run the Federal Ministry of Water and Power. He had to import, a “has been” pharmacistfrom the United States (who still hold his US Citizenship) to the most critical ministry in Pakistan.

Of course, Nawaz Sharif cared the least if this man had even a remote expertise in this crucial ministry. It is possible, since, Load shedding was the biggest head ache facing Nawaz Sharif, he decided to bring a pharmacist to run the Ministry of Water & Power. One can conjecture that Nawaz Sharif needed a pharmacist to relieve his biggest head ache:The Pakistan Power Crisis. 

Nothing changes in Pakistan, where square pegs have filled round holes almost all the time for the last 65 years.

So why NOT, have a Pharmacist running the Water & Power Ministry.

That shows Nawaz Sharif’s acuity in recognizing talent and giving it position and power, where it can show its maximum incompetence.

But, 180 million Pakistanis don’t care. They are too hungry and suffering from economic deprivations. They are still in a honey moon phase with a Prime Minister, whose IQ in problem solving runs into negative numbers.

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How India got its funk

How India got its funk

 

India’s economy is in its tightest spot since 1991. Now, as then, the answer is to be bold


The Economist, Aug 24th 2013
 

Inline image 2


IN MAY America’s Federal Reserve hinted that it would soon start to reduce its vast purchases of Treasury bonds. As global investors adjusted to a world without ultra-cheap money, there has been a great sucking of funds from emerging markets. Currencies and shares have tumbled, from Brazil to Indonesia, but one country has been particularly badly hit.

Not so long ago India was celebrated as an economic miracle. In 2008 Manmohan Singh, the prime minister, said growth of 8-9% was India’s new cruising speed. He even predicted the end of the “chronic poverty, ignorance and disease, which has been the fate of millions of our countrymen for centuries”. Today he admits the outlook is difficult. The rupee has tumbled by 13% in three months. The stockmarket is down by a quarter in dollar terms. Borrowing rates are at levels last seen after Lehman Brothers’ demise. Bank shares have sunk.

On August 14th jumpy officials tightened capital controls in an attempt to stop locals taking money out of the country (see article

 

). That scared foreign investors, who worry that India may freeze their funds too. The risk now is of a credit crunch and a self-fulfilling panic that pushes the rupee down much further, fuelling inflation. Policymakers recognise that the country is in its tightest spot since the balance-of-payments crisis of 1991.


How to lose friends and alienate people

India’s troubles are caused partly by global forces beyond its control. But they are also the consequence of a deadly complacency that has led the country to miss a great opportunity.

  

During the 2003-08 boom, when reforms would have been relatively easy to introduce, the government failed to liberalise markets for labour, energy and land. Infrastructure was not improved enough. Graft and red tape got worse.

  

Private companies have slashed investment. Growth has slowed to 4-5%, half the rate during the boom. Inflation, at 10%, is worse than in any other big economy. Tycoons who used to cheer India’s rise as a superpower now warn of civil unrest.


As well as undermining 1.2 billion people’s hopes of prosperity, failure to reform dragged down the rupee. Restrictive labour laws and weak infrastructure make it hard for Indian firms to export. Inflation has led people to import gold to protect their savings. Both factors have swollen the current-account deficit, which must be financed by foreign capital. Add in the foreign debt that must be rolled over, and India needs to attract $250 billion in the next year, more than any other vulnerable emerging economy.

A year ago the new finance minister, Palaniappan Chidambaram, tried to kick-start the economy. He has attempted to push key reforms, clear bottlenecks and help foreign investors. But he has lukewarm support within his own party and faces obstructionist opposition. Obstacles to growth, such as fuel shortages for power plants, remain. Foreign firms find nothing has changed. Meanwhile, bad debts have risen at state-run banks: 10-12% of their loans are dud. With an election due by May 2014, some fear that the Congress-led government will now take a more populist tack. A costly plan to subsidise food hints at this.

Stopping the rot

To prevent a slide into crisis, the government needs first to stop making things worse. Those capital controls backfired, yet the urge to tinker runs deep: on August 19th officials slapped duties on televisions lugged in through airports. The authorities must accept that 2013 is not 1991. Then the state nearly bankrupted itself trying to defend a pegged exchange rate. Now the rupee floats, and the state has no foreign debt to speak of. A weaker currency will break some firms with foreign loans, but poses no direct threat to the government’s solvency.

And so the Reserve Bank of India must let the rupee find its own level. The currency has not yet wildly overshot estimates of fundamental value. Raghuram Rajan, the central bank’s incoming head, should aim to control inflation, not micromanage one of the world’s most traded currencies.

Second, the government must get its finances in order. The budget deficit has been as high as 10% of GDP in recent years. This year the government must hold down its deficit (including those of individual states) to 7% of GDP. It is already cutting fuel subsidies, and—notwithstanding the pressures in the run-up to an election—should do so faster.

This is not enough to fix the government’s finances, though. Only 3% of Indians pay income tax, so the government’s tax take is puny. A proposed tax on goods and services, known as GST, would drag more of the economy into the net. It is stuck in endless cross-party talks. If the government can rally itself before the election to push for one long-term reform, this is the one it should go for.

Last, the government, with the central bank, should force the zombie public-sector banks to recapitalise. In 2009 America did “stress tests” to repair its banks. India should follow. Injecting funds into banks would widen the deficit, but the surge in confidence would be worth it.

  

There are glimmers of hope: exports picked up in July, narrowing the trade gap. But India faces a difficult year, with jittery global markets and an election to boot. Even if it scrapes past the election without a full-blown financial crisis, the next government must do much, much more to change India. 

 
Over the coming decade tens of millions of young people will have to find jobs where none currently exists. Generating the growth to create them will mean radical deregulation of protected sectors (of which retail is only the most obvious); breaking up state monopolies, from coal to railways; reforming restrictive labour laws; and overhauling India’s infrastructure of roads, ports and power.

The calamity of 1991 led to liberalising reforms that ended decades of stagnation and allowed a spurt of fast growth. This latest brush with disaster could produce a positive legacy, too, but only if it persuades voters and the next government of the importance of a new round of reforms that deal with the economy’s flaws and unleash its mighty potential.

 
Courtesy: Maqsood Kayani

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