Editorial 1/ Danger signs
Editorial 2/ Let’s party
A turning point in history
The goodness of a bad spot
Document/ Working children and their rehabilitation
Fifth Column/ How to net virtual criminals
Letters to the editor

Less than a week has passed since the dreadful calamity in New York. The city is slowly limping back to some semblance of normality, minus one of its most well known symbols. But although civic life may appear to be normal, it will take a long time for economic life in the city to be restored to what it was before Black Tuesday. New York has been the world’s financial centre. Even minor ripples in Wall Street have major repercussions in stock markets across the world. Unfortunately, it is the financial sector which has been affected most severely since many of the leading financial companies had their head offices in the World Trade Center. It is almost certain that inter-country capital flows will be severely disrupted for quite some time. The dislocation in financial services may even affect world trade in the short run if normal banking channels cannot function properly. Share values have come down all over the world. But, the full impact on stock exchanges will only be known when Wall Street opens for trading on Monday.

Even if Wall Street witnesses limited turmoil in the first couple of days, developing countries including India may suffer because of global redemption pressures. If the foreign institutional investors do start withdrawing from Indian stock markets, there may well be a mini-foreign exchange crisis and the rupee may slide down even further. There were also apprehensions that oil prices would shoot up since this has been an almost inevitable consequence of any major act of terrorism — perhaps because these fuel fears that largescale hostilities may break out. Fortunately, after an initial spurt, oil prices seem to have come down.

The million-dollar question is how the American economy will adjust to the catastrophe. Given the increasing integration of country economies as well as the sheer size of the American economy, a global recession will be inevitable if the slowdown in the American economy becomes more . But it is too early to even hazard any guesses about how the American economy will behave in the coming months. The United States congress has sanctioned expenditure of $ 40 billion in order to help New York recover. Even by US standards, this is a large sum of money, and expenditures of this level must have large expansionary effects on the economy. On the other hand, uncertainty about the future may result in a severe cut-back in private expenditure as both investors roll back new investment plans and households postpone purchases of consumer durables. Much will depend on the severity of the US government response to the terrorist attack. Everyone is sure that there will be “some” response. If the response is restricted to a limited attack on terrorist camps and their leaders, then there may not be any widespread repercussions. In this case, Americans may be on a moral high ground, and this may actually trigger off increased spending in the domestic economy. Obviously, this will act as a catalyst and stimulate economic recovery in the US — something like this was supposed to have happened after Pearl Harbour. The danger is that the American counter-attack may not be limited. The wider the area over which the US launches retaliatory strikes, the greater will be the resulting backlash. This will almost certainly cause widespread economic disruptions. For instance, oil prices will definitely hit the roof. This will set back the world economy by several years.


The backward pull of history could prove difficult to counteract. Mr Buddhadeb Bhattacharjee’s tug of war with certain directed energies within his own party cadre continues in what is now becoming a few recognizable forms. Perhaps the most exasperating — for Calcuttans and, one hopes, for the chief minister as well — is his doomed battle against the left’ s automatic programming into agitational street politics. Like most things automatic, this habit is mindless and self-propelling. In Bengal, it is born out of a political ideology that has resulted in much dissipation of energies and resources. The left front’s habit of calling rallies, bandhs, dharnas and go-slows at the drop of a hat — “trivial” reasons, as the chief minister puts it — has fostered in Calcuttans a propensity for undeserved and extended siestas. The entire gamut from maddening inaction to Mediterranean gaiety may be experienced in the city, creating a work ethic that keeps investors shaky and unionists gleeful.

The latest rally that disrupted normal life in the city to a thoroughly irritating extent was called by the Student Federation of India. It was protesting against a phenomenon that requires very little ideological clarity these days — the “saffronization” of education by the Bharatiya Janata Party. The student wing of the Communist Party of India (Marxist) has perhaps done more disservice to the cause of academic discipline and excellence than any other body in the state ostensibly formed out of a dedication to the principles of education. What is most outrageous about this particular episode is the CPI(M) politburo member, Mr Biman Bose, publicly blaming the police for the traffic chaos caused by this rally. The SFI has not been idle before this latest outbreak of its energies. It has recently protested against the hike in rail fares by squatting on the very tracks that would carry the chief minister back home from Darjeeling. Then too Mr Bhattacharjee’s exasperation was obvious. This could intensify if some of the more senior presences in the front continue to look back nostalgically to a past of populist protest and “rights”. The “new” left and the new Bengal should not bring forward this history of ineffectuality into a phase that aims to look ahead toward modernity.


Even as the full scale of the tragedy that struck the United States on September 11 is unfolding, it is worth pondering its strategic implications. A leading American daily has termed it as war while others have termed it Pearl Harbour II. Perhaps the most significant reaction comes from Ehud Barak, who termed it an assault on civilization itself. Coming as it does from the ex-prime minister and an ex-general of Israel, a country that has been at the receiving end of terrorism since its inception, this truly reflects on the wider international strategic security ramifications of such acts of terrorism.

While it would be premature to guess as to who the perpetrators of these heinous acts are, some preliminary observations can safely be made. That the operation was planned and executed with military precision is not in doubt, as its perverted success would amply demonstrate. Behind the operation were forces powerful enough with material, human, intelligence and financial resources to take on the might of the only superpower on its own turf, and that too in complete secrecy.

To convert passenger aircraft into human bombs not only requires daring and skill, but also motivation of a fanatical kind. Amongst the perpetrators were certainly qualified and somewhat skilled airline pilots who seized control and, Kamikaze-like, finally flew into their targets. And finally the symbolism of the targets chosen cannot be ignored. Pentagon as the heart of US military power and International Trade Towers in the heart of the financial district.

Full facts about the last hijacked aircraft that crashed near Pennsylvania have not been revealed. Could it be that this was headed for Capitol Hill or the White House, thus aiming to complete the sum total of what the US stands for — the richest and most powerful nation on earth, with an open society and a democratic polity?

Without wanting to jump to any conclusions, it is difficult to see how the finger of suspicion can point to any, but one or more,of the fundamentalist organizations roaming the free world with perceived grievances and looking for causes that will make them martyrs. Countries like Israel and India who have been at the receiving end of terrorism for decades must feel that this tragedy could have been averted had the international community as a whole looked at evolving international terrorism for what it is, a plague that sooner rather than later will engulf every corner of the globe and with ever increasing ferocity as technology marches onwards benefiting both good and evil.

Perhaps the sight of two hijacked passenger jets wilfully ramming into the Trade Towers in the heart of New York’s financial district, causing their collapse, must stir even the most benign mind in every free country and society to join hands towards fighting this scourge before it is too late.

While India has been exposed to insurgency movements in the northeastern states since independence, it was in Punjab that the Indian security establishment first encountered terrorism based on religious fundamentalism. It took longer than normal to bring it under control because of the help that the terrorists were receiving from across the western borders.

Public memory is short and not many will remember the Air India Jumbo, Kanishka, that was blown up in mid-air near Ireland by Sikh terrorists operating from Canada. Decades later, the culprits undergoing trial are yet to be brought to book. In Jammu and Kashmir, terrorist actions have claimed the lives of over 20,000 security men and innocent civilians. Ironically one massacre of Sikhs in Kashmir was deliberately committed when the US president was on an official visit to India. As responsible civilized societies, our reactions are measured and largely benign.

So far the reaction of free democratic societies to terrorist activities has been to treat these incidents as crimes and follow due processes of law. Whether it was the earlier bombing of the ill-fated Trade Centre in New York, blowing up of the Pan American Jumbo over Lockerbie or bombing of US embassies in Nairobi and Dar-e-Salaam, the US governments have followed this benign and civilized path. India’s approach has been no different to the Bombay blasts accused or to the terrorist outfits in Punjab and Jammu and Kashmir. While our security forces continue to fight with one hand literally behind their back, human rights groups and self-proclaimed human rights activists are quick to cry foul at the slightest hint of unfair play.

Ironically, the only memory of the Punjab terrorist movement today is the legal harassment some of the policemen are undergoing having been charged with human rights violations — the very ones who finally brought terrorists to their knees at great cost to themselves. Such are the checks and balances that constitute a free civilized society, which the terrorists are only too quick to exploit.

It is time to see what really terrorism is. Its purpose is to create disturbance and panic with the aim of weakening the will of the people and the government — both physically and psychologically. Those who plan such deeds are cool strategists with calculating minds. Their tools are the brainwashed and the misguided who are made to believe in a greater cause without quite knowing what that is. Ironical though it may seem, terrorism exploits democratic society because it knows that its actions will not draw harsh responses from the government. Earlier examples are ample demonstration of how heinous terrorist crimes have gone unpunished for decades while those fighting terrorism are being hauled over the coals for transgressions of civilized norms.

Now that the world has seen on its television screens how terrorists can wage an undeclared war, it is time for the international community to sit up and take note. It is no more a case of fuelling a proxy war against a perceived enemy by providing material or physical help as Pakistan is doing to India in Jammu and Kashmir. Or supplying clandestine arms and technologies in violation of international commitments as China is doing with Pakistan in the context of long-range missiles and nuclear warheads. Nor is it worth selling arms and technologies to unrecognized parties and groups, whatever may be the commercial attractions. At the end of the day, the same flames that are sweeping some of the free nations of the world will engulf Pakistan and China.

As international leaders reflect on the wider strategic ramifications of the events of September 11, there should be little doubt in their minds that the distinction between war and peace is forever gone. What we have witnessed are ravages of war in the midst of peace with an enemy that is elusive and unknown. No rules have yet been written for such conflicts and those conventions and codes that apply to wars amongst civilized countries have no relevance.

Yesterday it was car bombs, today it is airliners converted to human bombs and tomorrow it will be nuclear, chemical and biological weapons in the heart of our cities. Barak’s analysis is therefore both apt and instructive. The international community must recognize that it is now war against civilized society and democratic governments. Such acts of terrorism must be treated as an act of war against humanity and must draw swift and harsh retribution by the international community. Only then will the international order be able to first contain and then eliminate this scourge of terrorism.

This is the challenge facing the civilized world. If the international community rises to this challenge, then Pearl Harbour II may well be a turning point in history much like its predecessor.

The author is a retired air marshal of the Indian air force


The slowdown of the economy in the United States (as evident before the collapse of the World Trade Centre) has hampered growth prospects for the whole world. The emerging economies which rely heavily upon the US market for absorption of their exports are feeling the crunch more than the rest. As of now, the US economy is showing no signs of recovery. Getting back on the rails and emerging again as the “locomotive” economy, which it was for several years, would take more time.

When symptoms of the slowdown became clear in the early months of the year, the world was uncertain how long it would last. Within a couple of months however, the initial worries gave way to serious concerns. Panic began spreading through adverse market sentiments, sending bourses into tailspins, the Nasdaq leading the pack. India felt the impact through troubled times in Dalal Street and other trading centres. The stock markets are still much below their last year-highs. Given the difficulty in various sectors of the economy, they will possibly remain so, till economic activity revives in a big way. But while domestic market confidence is down, there are a few voices exuding optimism about the US slowdown actually turning out to be a blessing in disguise for India.

The United Nations conference on trade and development in its latest trade and development report was positive about India’s ability to weather the crisis. The International Monetary Fund too was hopeful of economic activity in developing Asia being sustained largely by China and India. More recently, prominent entrepreneurs, doing business in both Indian and US markets, have waxed eloquent on the opportunities that the US slowdown offers to India.

Going by hard facts, many may find it difficult to share the optimism. Right now, the lean phase in the US economy is being perfectly complemented by a rough patch in India. Industry is down. Infrastructure has had one of the sharpest nosedives in recent times. Both exports and imports have dipped alarmingly. The gross domestic product growth has dropped from well above 6 per cent to just above 5 per cent. If the Indian economy is to revive quickly from this sorry state of affairs, it will certainly require some effort.

Notwithstanding the gloomy picture, notions of the Indian economy striking it big when chips are down on the other side of the Atlantic are not entirely figments of imagination. To see the logic behind the claim, it is important to identify the reasons behind the US slowdown. The dotcom meltdown can be singled out as the most important factor. Technology stocks had risen to an unprecedented high during the dotcom wave in the later Nineties. Instead of showering accolades upon the US economy for driving the world in the last decade, it would be more appropriate to reserve the praise for Silicon Valley. With the valley facing rough weather, technology stocks have fallen flat.

How is the dotcom fraternity expected to react to the adverse circumstances? With profits dipping and revenues shrinking, the knee-jerk reaction would be to cut costs. Cost-retiring efforts have already begun, with lay-offs and retrenchments taking place on a large scale. While minimizing expenditure in the relatively non-essential areas is the first step, the more difficult part would come later. With cost cuts over, companies would have to figure out ways of increasing revenues for maintaining profits at sustainable levels.

This is where some radical decisions would be called for. For the dotcoms and the information technology family, identifying new business locations would emerge as an important consideration. This would depend upon two key factors. The size of the markets and the production costs in the new locations. Bigger markets would promise better business. Cheaper production costs would be equally important since the firms at the beginning won’t prefer going beyond the minimum start-up costs and would want to keep running costs as low as possible.

In terms of both market size and costs, India is an attractive location for IT investment. With e-governance fast becoming an integral part of both public and corporate governance cultures, demand for IT services shouldn’t be a problem. What might matter is the price for the services. But given the global slowdown, the investing companies possibly won’t mind the relatively lower prices.

The expanding pool of customers and the ability of the Indian market to absorb a wide range of services can always compensate revenue through quantity, if not price. In terms of feasibility of bulk production of IT services, India has few competitors, given the availability of skills at low price. A vast, well-trained body of IT professionals can offer ready, quality inputs at one of the cheapest rates.

Given the advantages that India enjoys, many are expecting the country to experience significant outsourcing in the near future. This would be an inevitable fallout of the dotcom meltdown. The meltdown should see not only licensing of production technologies to other locations, but also complete resettling of businesses in different countries. And as far as IT is concerned, India is certainly one of the automatic choices.

Considering the pool of indigenous resources that India possesses in IT, it has the ability of making it big in creation of intellectual capital. Already, there are a host of resource and development and product development centres in the country set up by IT giants, keen on exploiting the faculties of IT specialists in the country. For Indian IT companies, this is the right time to invest in R&D and go all out for creating intellectual capital. The global meltdown has offered the scope of entering into easy alliances and joint ventures. If Indian firms can utilize the opportunity then, within a few years, they can take rapid strides as far as possession of quality IT assets are concerned.

While in a way IT has been responsible for putting the world in a spot of bother as far as global growth prospects are concerned, it is, ironically, IT again that may hold the trump card for India. The need of the hour is to realize the opportunities and take the plunge. What glitters may not always be gold. But gold may be there just beyond the glitter.


The Supreme Court of India...has given certain directions regarding the manner in which children working in the hazardous occupations are to be withdrawn from work and rehabilitated, and the manner in which the working conditions of children working in non-hazardous occupations are to be regulated and improved. The judgement of the Supreme Court envisages:

(a) Simultaneous action in all districts of the country;

(b) Survey for identification of working children (to be completed by June 10,1997)

(c) Withdrawal of children working in hazardous ind-ustries and ensuring their education in appropriate institutions;

(d) Contribution of Rs 20,000 per child to be paid by the offending employers of children to a welfare fund to be established for this purpose;

(e) Employment to one adult member of the family of the child so withdrawn from work, and if that is not possible a contribution of Rs 5,000 to the welfare fund to be made by the state government;

(f) Financial assistance to the families of the children so withdrawn to be paid out of the interest earnings on the corpus of Rs 20,000/25,000 deposited in the welfare fund as long as the child is actually sent to the schools;

(g) Regulating hours of work for children working in non-hazardous occupations so that their working hours do not exceed six hours per day and education for at least two hours is ensured. The entire expenditure on education is to be borne by the concerned employer;

(h) Planning and preparedness on the part of Central and state governments in terms of strengthening of the existing administrative/regulatory/enforcement frame-work (covering cost of additional manpower, training, mobility, computerization, etc.) implying additional requirement of funds.

As a follow up of the directions of the Supreme Court, all the state governments were sent detailed guidelines on December 26, 1996, indicating the manner in which the directions of the Supreme Court were to be implemented.

A meeting of the national authority for the elimination of child labour was convened on December 31, 1996 to discuss the directions of the Supreme Court on child labour. It was decided in the meeting that the ministry of labour should immediately release funds to the state governments so as to enable them to conduct surveys of working children before June 10, 1997.

A conference of the labour ministers of state/union territories was convened on January 22, 1997 to finalize an action plan for the implementation of the directions of the Supreme Court on withdrawal and rehabilitation of working children.

In the conference, all the participating states and union territories welcomed the judgement and demonstrated their political will to eliminate child labour. However, all the states pleaded for additional and liberal financial assistance from the Central government for implementing the judgement of the Supreme Court.


The recent fiasco at Salt Lake involving the illegal use of the internet through satellite has reminded us once again of the negative impact of information technology. The internet has emerged as a huge source of information and means of communication. At the same time, society is facing a tough challenge in combating crimes which are being facilitated by the internet.

Difficulty in tracing the person who has perpetrated the criminal act, the unregulated nature of the internet, the irrelevance of geography, and the disputed position of the internet service provider’s liability in the use of the internet for illegal purposes have contributed to turning it into a fertile ground for criminal enterprises.

Computer viruses released within the internet, either as mail attachment or from various sites, are capable of destroying computers connected to the network. People who are committing such “mischief” can be held under section 425 of the Indian penal code. Anyone, with intention to cause wrongful loss or damage to the public or to any person, causes destruction to property or destroys or diminishes its value or utility shall be guilty of “mischief”. Section 65 of the Information Technology Act metes out imprisonment of three years for tampering with computer source documents. In the United States, the federal computer abuse act punishes transmission of a program, information, code or command that cause damage to a computer, computer system, network, information, and so on.


Cyber-stalking is another form of internet crime where individuals are harassed through electronic mail or other computer-based communication. If a person happens to meet another person through the net, any one of them can start harassing the other by sending mail with varied content, passing on his email address to others. The situation may get worse if one of the party has divulged the phone number, photograph or any other personal details to the other. Cyber-stalking can take place through unsolicited email and live chat harassment. Section 503 of the IPC can be applied if cyber-stalking amounts to a threat of injury to any person, reputation or property. The ITA does not contain any provision to address this menace.

The internet has emerged as an unending source of pornographic material. In India, obscenity is defined as things that deprave or corrupt the mind of individuals. Section 292 of the IPC deals with obscenity, laying emphasis on the print media. Under section 67 of the ITA, the publication of information which is obscene in an electronic form is punishable. The access to child pornography through the internet is another alarming fact. In India there is no special provision relating to child pornography.

Mail bombs

Spamming or sending numerous or large email messages to someone is also known as mail bombing. A software can be created to instruct a computer to send email repeatedly to some specified address. This can immediately jam the whole email account and shut down the entire system. This used to be considered as a tort case, but it can also be dealt with legally as “mischief”.

The internet with its open network, unlimited users and less usage control makes electronic messages susceptible to interception, alteration, tampering and forgery. Section 463 of the IPC defines forgery as the making of a false document to cause damage or injury to public or an individual, to support any claim or title, to cause any person to part with property, to cause any person to enter into an express or implied contract, to commit fraud or so that fraud may be committed.

Online fraud is a major threat to cyberization. This is a fraud committed through or with the help of internet-related communication. Bankers are one of the victims of internet fraud. Bank frauds are generally done through hacking into bank’s databases to perform illegal transfer of accounts.

Internet crime will also raise important issues like jurisdiction over internet, digital evidence, investigation, delivery of evidence, handing over of criminals, prosecution, trial and enforcement of judgment. Success in combating cyber-crime will largely depend on procedural issues and the ongoing development of substantive laws.



Culture and puritanism

Sir — The reported protest by a group of young people against the proposed staging of a live show by the popular music group, Vengaboys, at Guwahati speaks of the intolerance, self righteousness and prudery that seems to afflict Indian society now more than ever before. It has become the practice of the self-appointed cultural police of India to flex their muscles every now and then. It is easy for a section of the upper class to decry the symbols of Westernization such as pop music, with all its associated ills, but the poor have no qualms about these as they amount to getting nearer to a decent livelihood. Instead of putting spanners, the culture police should think about ways of encouraging the multinationals to stage such shows. They at least provide some jobs to the unemployed — something that the government has failed to do. At the heart of such irrational outrage is the fear of losing one’s culture and a way of life. A foreign pop band will not be able to uproot our culture if our values are strong enough.
Yours faithfully,
Rajneeta G. Baruah, Guwahati

Easing labour pains

Sir — The apex court’s recent judgment on the absorption of contractual labour has farreaching implications (“Contract labour loses right to permanent employment”, Aug 31). Many of the overstaffed public sector units have been forced to absorb contract labourers in bulk, which otherwise would have been avoided.

This judgment will particularly benefit the service sector, which often has to use its employees to carry out jobs which ideally could be done through contract labour. The judgment will help the service sector gain an edge over the private sector. The Supreme Court verdict will also benefit the contract service sector. For a long time, PSUs have been shying away from employing contract labour fearing future demands of absorption. Moreover, in many cases, contract labourers are underpaid and they accept the injustice in silence in the hope that they would ultimately be absorbed in the organization in future. The only section that stands to lose from the arrangement is politicians who have been influencing “automatic absorptions”.

Yours faithfully,
D. Ray, via email

Sir — The Supreme Court’s judgment on contract labour will give the PSUs some flexibility in determining the nature of its recruitment policy. So far this was definitely missed by the management of any company. However, a lot is to be done before India’s labour laws encourage companies to employ people according to their requirements, particularly since this will allow surplus labour to be shed when economic considerations so dictate.

The ability to hire labour on contract basis must be extended to all categories of jobs. For this, perhaps, one needs short term employment contracts under which workers can be laid off at the end of the contract period without leaving the scope for dispute. This will help improve the quality of available labour and allow companies to exercise their option better according to the work requirements. The abundance of cheap labour in India would also encourage companies to create more jobs, even if only for a short contract period.

Yours faithfully,
Harmeet Singh Chawla, Haldia

Sir — With the advent of liberalization, anything indigenous is ending in a turmoil. Small industries and business houses are folding up. Indian products are being endangered by the influx of imported goods. And the lopsided policies of the government are playing havoc with the population.

The government’s eagerness to restrict and ban the consumption of tobacco and tobacco goods have threatened the existence of lakhs of workers engaged in the unorganized sector of bidi production. Tobacco cultivators all over India are tense after major tobacco companies decided to diversify into other businesses. Farmers in Karnataka and Andhra Pradesh are up in arms against their government’s decision to cancel the permit of merchandizing tobacco. The state governments are unable to provide employment to the workers.

Cases of suicide among the tobacco farmers are increasing every day. Liberalization is extracting a heavy human price. If the government was able to rehabilitate the tobacco farmers and its associated labour, or provide employment to the thousands engaged in liquor trade, the state’s attempt to project itself as an ideal welfare state would have invited no complaint.

Yours faithfully,
R.K. Raj, via email

Food for thought

Sir — In a recent examination, I was asked to write on the wasting of stored foodgrain. At that moment I had no clue of what the issue was about, but the food crisis in Orissa has brought things in perspective. The hoopla over information technology is a great shame for a nation which has grains rotting in warehouses while people go hungry. One cannot but blame the people for electing such an irresponsible government. The unfortunate incident in Kashipur should serve as an example for the Oriyas to be more sensible while electing a government.
Yours faithfully,
Krishna Kanodia, Ranigunj

Sir — The deaths in Kashipur are a matter of serious concern. As usual, the the Centre and the Orissa government have contradictory reports on the number of deaths and they assume the cause of the deaths to be as disparate as intake of mango kernel and meat of dead animals and meningitis.

For tribals of this district, a meal comprising of mango kernel paste and wild mushroom is not new. Although the Kondh tribals and landless and small farmers are aware of the fact that these are poisonous, their low purchasing power compels them to try out such a diet. They are even unable to buy subsidized rice available under schemes like the integrated tribal development programme or the drought-prone area programme.

Given the huge buffer stock of foodgrain, the Centre should have been especially careful in coordinating its action with that of the state governments. There have been recent attempts to identify people below the poverty line and issue them ration cards. The government has also decided to fix accountability and invoke punitive measures against shirkers. However, doubts persist about the sincerity and earnestness of the government.

Yours faithfully,
D.V. Vamsee Krishna, Bhubaneswar

Oil your machine

Sir — It is time the government tried to regulate the import of crude oil in order to arrest the oil pool deficit. Given the soaring price rise of crude oil, the import will cause an extraordinary liability on India. Oil should be rationed to bring down internal consumption. Government departments should be told to cut down on use of fuel unless there is a real necessity. We must take lessons from China where a minimum number of vehicles are used by government officials.
Yours faithfully,
B.P. Mohanty, Balasore

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