KARNATAKA FIASCO
The Karnataka coalition drama has provided an opportunity to the administration, the protectors of the constitution and the well wishers of the Indian constitution to re look at the issues that affect the Indian polity today.
Given the increasingly fractured verdict which the Parliamentary system of selecting the representative is throwing up, coupled with voter''s apathy, it is time constitutional experts got their act together to preserve the intent and main aim of the provisions in the constitution regarding constitution of the governing machinery; namely provide stable governance.
Citing judgments of decade old cases in politics, is akin to citing the Red Herring to decide the course of next action. We need to look at the political realities of the day and take decisive actions to provide the bench mark for the future, lest future generations are compelled to live by what our fore fathers decided.
If the current combination of BJP - JD(S) is allowed to form the government, it will set a bad precedent. They have gained power at the first instant based on numbers, but with the solemn promise that they will provide stable governance. Now that they have failed, the Executive must exercise his powers to reject this alliance which has failed to stick to its original commitment made to the people and the constitutional authority in words (!) and spirit.
If the opportunistic alliance is once again allowed to assume power, be that as it may be for a few weeks, it will embolden those elements who think that merely winning a seat to the legislative assembly, guarantees them power and opens up many revenue streams. It would also encourage further splitting of the Parties and render the coalition exercise a mere number game. Coalition politics by intent and practice should not be degraded to a number game as it is being made out to be.
This opportunity shall be exploited by the administration and the judiciary to spell out clearly what is the form of Coalition government, that is acceptable to provide a stable governance. Opportunistic alliances can not be handed over power just because a judgment says that it should be decided by the numbers.
Given the increasingly fractured verdict which the Parliamentary system of selecting the representative is throwing up, coupled with voter''s apathy, it is time constitutional experts got their act together to preserve the intent and main aim of the provisions in the constitution regarding constitution of the governing machinery; namely provide stable governance.
Citing judgments of decade old cases in politics, is akin to citing the Red Herring to decide the course of next action. We need to look at the political realities of the day and take decisive actions to provide the bench mark for the future, lest future generations are compelled to live by what our fore fathers decided.
If the current combination of BJP - JD(S) is allowed to form the government, it will set a bad precedent. They have gained power at the first instant based on numbers, but with the solemn promise that they will provide stable governance. Now that they have failed, the Executive must exercise his powers to reject this alliance which has failed to stick to its original commitment made to the people and the constitutional authority in words (!) and spirit.
If the opportunistic alliance is once again allowed to assume power, be that as it may be for a few weeks, it will embolden those elements who think that merely winning a seat to the legislative assembly, guarantees them power and opens up many revenue streams. It would also encourage further splitting of the Parties and render the coalition exercise a mere number game. Coalition politics by intent and practice should not be degraded to a number game as it is being made out to be.
This opportunity shall be exploited by the administration and the judiciary to spell out clearly what is the form of Coalition government, that is acceptable to provide a stable governance. Opportunistic alliances can not be handed over power just because a judgment says that it should be decided by the numbers.
Sub Prime Mortage Fall out
We are reading different reports of the impact of the US Sub Prime Mortgage fall out on developing markets and emerging economies. The reports unfortunately have to rely on information which are handed over to you by the administrations and regulators, who have the powers to remain opaque.
Given the levels of visibility reached through satellite imaging techniques such as Google Earth, it is surprising that in large financial transactions running to billions of dollars, opacity stares at you. The crisis which is purportedly created by a few banks, seem to have had regulatory sanction, as you find the Regulators coming out openly in support of them, with the public fund. The Regulator in UK has come out openly to save a bank and the US Fed is reportedly injecting billions to allow some of the entrenched entities to move out in a more orderly manner. In a mature functioning capital market, it is indeed strange that we are seeing certain Regulatory actions, which can be clearly interpreted to be in support of defined entities who have abused the rules.
In such circumstances, given the opacity of the transactions, it is but natural that one would come to the logical conclusion that the excesses committed by these entities, have been enjoying the Regulators tacit support all along. No wonder, RBI governor in his inimitable manner has warned of surprises and indicated recently his resolve to take "unconventional" actions as necessary.
All these point to more major events in the immediate future. The tremors of Sub Prime Mortgage, are still traveling through the depths of integrated global economy sea. One is not sure where it is heading and which is the shore it is going to hit. There are no sensors to track this "Tsunami"(financial) and predict land fall.
Planners may be warned to plan for the landing and put in place emergency mechanisms to evacuate and provide "First Aid"
Given the levels of visibility reached through satellite imaging techniques such as Google Earth, it is surprising that in large financial transactions running to billions of dollars, opacity stares at you. The crisis which is purportedly created by a few banks, seem to have had regulatory sanction, as you find the Regulators coming out openly in support of them, with the public fund. The Regulator in UK has come out openly to save a bank and the US Fed is reportedly injecting billions to allow some of the entrenched entities to move out in a more orderly manner. In a mature functioning capital market, it is indeed strange that we are seeing certain Regulatory actions, which can be clearly interpreted to be in support of defined entities who have abused the rules.
In such circumstances, given the opacity of the transactions, it is but natural that one would come to the logical conclusion that the excesses committed by these entities, have been enjoying the Regulators tacit support all along. No wonder, RBI governor in his inimitable manner has warned of surprises and indicated recently his resolve to take "unconventional" actions as necessary.
All these point to more major events in the immediate future. The tremors of Sub Prime Mortgage, are still traveling through the depths of integrated global economy sea. One is not sure where it is heading and which is the shore it is going to hit. There are no sensors to track this "Tsunami"(financial) and predict land fall.
Planners may be warned to plan for the landing and put in place emergency mechanisms to evacuate and provide "First Aid"
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