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Abstract

This paper is concerned with the impacts of strict patents in the pharmaceutical industry, focusing on the Trade Related Aspects of Intellectual Property Rights (TRIPs) Agreement. It discusses the historical and current policy context, to better understand how strict patents affect the availability of essential drugs in developing countries.

The research shows that the pharmaceutical industry prioritises profit above health. Strict patents reduce the availability and affordability of new essential drugs in developing countries, and thereby have a negative impact on the health of the world’s poor. Larger pharmaceutical companies benefit more than smaller companies because they have a monopoly in the industry. They invest more in research and development and, linked to economies of scale, are better positioned to exploit markets for new drugs.

The example of India highlights the importance of generic production and essential drugs in developing countries. It shows that while TRIPs promotes economic growth of the industry and encourages investment in research and development of new drugs, it increases the prices of new essential drugs, thereby isolating benefits from the majority poor populations in developing countries.

The paper suggests that based on historical and current trade policy, developed countries have an ethical obligation to allow poorer countries to develop infrastructure for their pharmaceutical industry, a responsibility not being fulfilled. It suggests TRIPs be revised under a more ethical framework. This includes increasing public funding of research and development, shortening the length of patents and allowing developing countries to generically produce essential drugs.

The paper highlights the interconnectedness of social, economic and political factors that could increase the availability of essential drugs in developing countries. It highlights the importance of better understanding the issues surrounding strict patents, and why the scientific community is critical to this process, in terms raising awareness and collaborating with independent organisations and concerned citizens to ultimately press governments for change at the national and international level.

Table of Contents

1. Introduction

1.1 What are Patent Laws?

1.2 What is TRIPs?

1.3 Focus and Structure of the Paper

2. Pharmaceutical Industry for Profit or for Improving Health?

2.1 Scale of Profits

2.2 Investment Priorities

2.3 Diffusion

3. Essential Drugs and Generic Production

4. Impacts of TRIPs

4.1 Main advantages

4.2 Main disadvantages

4.3 The Doha Agreement and Compulsory Licensing

5. Conclusions

6. References

1. INTRODUCTION

‘As the ancient scourge of polio was rolled back by his vaccine 50 years ago, Jonas Salk, the inventor of the polio vaccine was asked why he never took a patent out on the medicine, a patent that would have made him wildly rich. “There is no patent,” he replied … “Could you patent the sun?”’ (Salon.com magazine 2001).

This paper explores the impacts of pharmaceutical patents on drug availability in the third world, focusing on the impacts of the Trade Related Aspects of Intellectual Property Rights (TRIPs) Agreement. It highlights the value of essential drugs and generic production in developing countries, using India as a case study. It also explores alternatives to TRIPs and the role of the scientific community.

1.1 What are patent laws?

A patent can be defined as ‘a monopoly right granted to person who has invented a new and useful article, an improvement of an existing article or a new process of making an article’. It consists of an exclusive right to manufacture the new invented article, or manufacture an article according to the invented process for a limited period. During the term of patent, the owner of the patent, i.e. the patentee can prevent any other person from using the potential invention .

Figure 1: Brief History of Patent Law

The timeline below illustrates the brief recent history of patents in the world .

1880-1882

Patent statutes introduced in most European countries

1883

Paris Convention for the Protection of Industrial Property – cornerstone of the modern international patent system.

1947 International Patent Institute (IIB) established at the Hague

1970

Patent Co-operation Treaty signed in Washington, D.C.

1978

International Patent Institute integrated into the European Patent Office (EPO)

1979

Bayh-Dole Act passed-granted permission to U.S. universities to license and profit from federally sponsored research*

1980

International Patent Documentation Centre (INPADOC) integrated into the EPO

In the pharmaceutical industry patents have a straightforward objective. They provide a strong incentive for companies to invest in the research and development of new drugs, knowing that they will be able to recuperate costs and, subsequently, profit from the new drug. However, patents enable parent companies to control the price and availability of new drugs. There is no competition from other companies to produce the drug, which would usually lower the price. Thus, increasing the length of patents can reduce the availability of new essential new drugs in developing countries, with knock on health problems.

Essential drugs can be broadly defined as those that satisfy the health care needs of the majority of the population. They should, therefore, ideally be available at all times in adequate amounts; in the appropriate dosage forms; at reasonable (affordable) price; and, meeting the criteria of quality, safety and efficacy (New Strait Times 1998).

Under the term of a patent, drugs, essential or non-essential, can only be produced by the parent company. This means that there is no competition from other companies to produce the drug, and the parent company can charge a high price for the drug, effectively making the drug unavailable for poorer people.

New drugs tend to be more available to developed countries, because people are more affluent and can afford higher prices. For this reason, pharmaceutical companies tend to market their drugs at developed countries. Overall, developed countries benefit more from new technology and advances in science because their governments, companies, and people can afford to buy into the technology.

The World Trade Organisation’s (WTO) Trade Related Aspects of Intellectual Property Rights (TRIPS) Agreement, which extends the length of patents, enables companies to significantly increase their profits and increase the technology gap between developed and developing countries.

1.2 What is TRIPs?

The Trade Related Aspects of Intellectual Property Rights (TRIPs) was added to the General Agreement on Tariffs and Trade (GATT) at the end of the Uruguay Round of trade negotiations in 1994. It came into full force in January 2005, and its inclusion by the World Trade Organisation (WTO) was the ‘culmination of a program of intense lobbying’ by the United States, supported by the EU, Japan and other developed countries .

The United States strategy of linking trade policy to intellectual property standards can be traced to senior management at Pfizer (a large United States pharmaceutical firm) in the early 1980s. Pfizer mobilised corporations and made maximising intellectual property privileges the number one priority of United States trade policy .

According to the WTO, ‘TRIPs is an attempt to strike a balance between the long term social objective of providing incentives for future inventions and creation, and the short term objective of allowing people to use existing inventions and creations’ .

The following requirements of TRIPs all have a bearing on the pharmaceutical use of patents .

? Copyright must be granted automatically, and not based upon any “formality”, such as registrations or systems of renewal.

? National exceptions to copyright (such as “fair use” in the United States) must be tightly constrained.

? Patents must be granted in all “fields of technology” (regardless of whether it is in the public interest to do so).

? Exceptions to patent law must be limited almost as strictly as those to copyright law. In each state, intellectual property laws may not offer any benefits to local citizens which are not available to citizens of other TRIPs signatories (this is called “national treatment”). TRIPs also has a most favoured nation clause.

? Patents in the pharmaceutical industry will apply for 20 years, instead of 10 to 15 years.

Some developing countries began to grant their own patent protection in the late 1980s, but TRIPs is a compulsory requirement for any country who wants to be a member of the World Trade Centre, and with that memberchip access to international markets and trade relationships. Countries which do not adopt TRIPs can be disciplined through the WTO’s dispute settlement mechanism, which is capable of authorising trade sanctions against dissident states . Therefore, the economic and poltical threats, which could cripple a poor economy, effectively forced developing countries to ratify the agreement.

The TRIPs agreement makes it easier to obtain and enforce patents. It increases the length of pharmaceutical patents, from 10 to 15 years to 20 years, which encourages companies to invest more in research and development and promotes economic growth. However, it favours developed countries, which have the capacity to enforce their rights globally, and create more exclusive trade options under the Intellectual Property Rights (IPRs). Developed countries have more pharmaceutical infrastructure and companies that are used to using patents to make profit.

1.3 Focus and structure of this paper

Chapter 1 introduced the main contentions of using strict patents in the pharmaceutical industry. It explained how patents work, and the main changes that TRIPs will make to the pharmaceutical industry.

Chapter 2 shows the monopoly of a handful of large pharmaceutical companies in the pharmaceutical industry. It provides a sense of the scale of the profits made by these companies, contrasting the investment priorities and types of drugs produced with those that are needed in developing countries. The Chapter debates whether the industry is for profit or health, briefly highlighting how companies make false claims through advertising in developing countries.

Chapter 3 introduces the idea of essential drugs and generic production, exploring the benefits with a case study of India. Chapter 4 shows how TRIPs will restrict generic production of essential drugs, and the impacts this will have on the majority poor populations in developing countries. The conclusion, Chapter 5, suggests how TRIPs could be revised under a more ethical framework, exploring the historical and current drug policy context, with particular emphasis on the role of scientists.

2. PHARMACEUTICAL INDUSTRY FOR PROFIT OR HEALTH?

In an attempt to understand how pharmaceutical companies control the availability of essential drugs, and use patents to make substantial profits, this chapter debates whether the pharmaceutical industry is for profit or health. It looks at the scale of profits made by the pharmaceutical industry and their investment priorities, also challenging whether ‘diffusion’ of biotechnology works to provide essential drugs to developing countries.

2.1 Scale of profits

There is a very familiar trend in the international pharmaceutical industry. A handful of multinational companies, originating from developed countries, have a great deal of economic power, which gives them control over drug availability and health. They also lobby governments to make trade policy which suits their profit making agenda. In 1996 the first ten multinational pharmaceutical companies accounted for approximately 36 per cent of the world pharmaceutical sales of US$ 251 billion .

Table 1: The World’s Top Ten Pharmaceutical Companies in 2003

Company Pharma Profit ($million) Pharma Sales ($ million) Pharma Operational Profit Margin

Pfizer 12,920.0 28,288.0 45.7%

Merck & Co. 10,213.6 21,631.0 47.2%

GlaxoSmithKline 7,598.2 26,979.0 28.2%

Johnson & Johnson 5,787.0 17,151.0 33.7%

AstraZeneca 4,006.0 17,841.0 22.5%

Novartis 3,857.3 13,497.4 28.6%

Wyeth 3,505.5 12,386.6 28.3%

Aventis 2,969.6 15,705.4 18.9%

Abbott 2,739.0 9,304.0 29.4%

Takeda 2,446.6 6,838.3 35.8%

Group Subtotal 56,042.9 169,621.8

Average 31.8%

Source: Adapted from Scrip Report 2003

The pharmaceutical sector racks up the largest legal profits of any industry, with an average 18.6 % return on revenues in 2001 (Resnik 2001).

However, Table 1 shows that the top ten companies achieved a much higher average profit margin of 31.8% in 2003. Thy have a monopoly over the industry. Linked to economies of scale, larger companies can exploit larger market penetration to increase their profits. For example, Pfizer and Merck & CO, two out of the top three pharmaceutical companies in 2003 according to gross sales, had a profit margin of 45.7% and 47.2% respectively. This was much higher than the average profit margin of the top ten companies (31.8%), which illustrates the relationship between economic power and power of market exploitation.

The pharmacetical industry justifies their high profits with the argument that a great deal of time and money is invested in the research and development of new drugs. In 1998, developed countries spent US$520 billion on research and development, more than the total economic output of the world’s poorest 30 countries. In 2003, it was estimated that the average cost of producing a new chemical compound is around US$ 200 million . Thus, the industry is keen to protect their investments and subsequently reward their efforts by making a great deal of profit. However, there are ethical issues as to whether the scale of the profit can be justified, given the healthcare problems that exist in developing countries resulting from the unavailability of essential drugs.

Large pharmaceutical companies maintain their monopoly by investing great sums in legalities to lobby governments into protecting the industry, by making strict patent law. ‘The combined worth of the world’s top five drug companies is twice the combined GDP of all sub-Saharan Africa and their influence on the rules of world trade is many times stronger because they can bring their wealth to bear directly on the levers of western power’ (Borger 2001).

One of the leading US biotechnological companies, Genentech, has four times as many lawsuits to protect its patents as it has products (Fowler 1996). At least one company has been created in the US whose ‘main business,’ according to the Wall Street Journal, ‘is buying up broad patents and then sueing other companies for alleged infringements’ (Fowler, 1996).

Thus, there is also the issue that investing so much money and time in litigtion is highly unproductive, when this money could be better spent on research and development of new drugs, and subsidising the cost of essential drugs in developing countries.

2.2 Investment priorities

The world market for pharmaceuticals shows a clear division: non essential drugs are produced and targeted at developed countries promising high profits, while developing countries are still in need of basic healthcare and essential drugs.

Of the 1223 new drugs marketed between 1975 and 1996, only 13 were developed to treat tropical diseases – and only four were directly the product of pharmaceutical industry research. In recent years, drug companies have produced thousands of new compounds but less than 1% are for tropical diseases .

In 1998, global spending on health research was US$70 billion , but 90% of the money spent on health research and development focuses on medical conditions responsible for only 10% of the world’s burden of diseases (Benatar 2000). Only US$300 million was dedicated to research for vaccines for HIV/AIDS and only US$100 million to malaria research, diseases with the highest mortality and morbidity rates in the world, and devastating in developing countries.

‘It would be more profitable to develop a drug designed to enhance sexual performance for Anglo-American males than to develop a medicine designed to treat or prevent malaria’ (Resnik 2001).

There is also the suggestion that pharmaceutical companies focus more effort on a certain drug in developing countries when it is in their research interest; “Of diseases in the Third World, AIDS is getting the most attention and focus. Not coincidentally, it is also one of the few diseases that remain a threat to First World countries” (Censored 2000).

Pharmaceutical companies are able to devote their resources to non-essential drugs targeted at the richer markets of developed countries and at the same time, exploiting the markets in developing countries by influencing the world price for drugs. For example, pharmaceutical companies have long resisted “differential pricing” on their US$12,000-a-year courses of anti-AIDS drugs, which would allow a course to cost less in Cameroon than in Canada . Thus, the effect of purchasing power parity means that the prices are even higher in real terms in developing countries.

Drug Aid

In many cases, drug companies will provide drugs to developing countries at cheaper cost as aid. For example, in March 1998 Glaxo Wellcome (UK) announced that it would sell its anti-HIV drug AZT for 70 per cent below the normal price to pregnant women in developing countries . However, drug aid is not always beneficial. Reich et al (1999) found that out of 16,566 drug donations shipped from the US to 129 countries between 1994 and 1997, 10-40% were listed on neither the national essential drug lists nor the WHO model of essential drugs in developing countries. Also, 30% of shipment items had a year or less of shelf life (ibid.).

Advertising and false claims

There is also evidence that companies, in addition to prioritising non-essential drugs for developed countries, exploit markets in developing countries by convincing people that they need non-essential drugs. A survey, in the Annals of Internal Medicine found that ‘62 per cent of the pharmaceutical advertisements in medical journals were either grossly misleading or downright inaccurate’ (Madeley 1999).

There has been much criticism of the advertising in developing countries, claiming it is particularly persuasive in nature and that people are misinformed and encouraged to believe wild promises. This illustrates the exploitative nature of the pharmaceutical industry, and the quest for profit at the expense of health.

“In the corporate headquarters of major drug companies, the public relations posters display the image they like to present: of caring companies that bring benefit to humanity, relieving the suffering of the sick. What they don’t say, is that, so far, their humanity has not extended beyond the limits of the pockets of the sick” (Hilton 2000).

In summary, the pharmaceutical industry is for profit. A handful of economically powerful companies use economies of scale to exploit the markets of developed and developing countries. As a whole, the pharmaceutical industry is:

? Priortising investment in non-essential comfort-oriented drugs for the wants of the more affluent in developed countries, whilst neglecting the needs for essential drugs for poorer people, particularly in developing countries.

? Investing heavily in litigation and patents to restrict competition from other companies, and enable control over the price and availability of drugs.

? Exploiting people in developing countries, using persuasive advertising to make false claims.

? Motivated by profit, not health.

As Smith (1994) points out, ‘There is a direct conflict between the pursuit of health and the pursuit of wealth.’

2.3 Diffusion

Policymakers and representatives of the pharmacetuical industry argue that relevant technology reaches poorer people by means of ‘diffusion.’ This describes the process by which drugs become available to the poor after patents expire, and when competition to make the drugs drives down the prices of the drugs so that poorer people can afford them. However, as agents of disease, including bacteria and viruses, are continually adapting to drugs and developing resistance to them, new drugs are often essential and life saving, which means it is critical they are available very soon after production in developing countries. Patents reduce the availability of new essential drugs, because they increase the time it takes for diffusion to take place, if it happens at all.

The lack of infrastructure in developing countries makes it difficult for essential drugs to reach those who need them, which can increase the time it takes for technology to ‘diffuse’ to the poor, even after patents have expired. For example, oral rehydration therapy, a simple and cheap salt-and-sugar solution, has been mass distributed since the 1980s and has greatly reduced child deaths from diarrhoea, ‘but even though it only costs 10 cents a sachet, it is still unavailable for 38% of diarrhoea cases in Third World countries.’ Another example, Penicillin, discovered in 1928 and first marketed in 1943, is unavailable to 2 billion people. (Healey 2001)

The unavailability of essential drugs therefore extends beyond a lack of access to new drugs designed to treat devastating infectious diseases [essential drugs] (Resnik 2001). 50% of people in developing nations do not have access to even basic medications, such as antibiotics, analgesics, bronchodilators, decongestants, anti-inflammatory agents, anti-coagulants and diuretics (Reich 1979-1981).

In the 1980s structural adjustment programmes were enforced on developing countries by the International Financial Institutions (IFIs), such as the World Bank and International Monetary Fund. These trade liberalisation policies involved the establishment of ‘export-processing’ zones, which offered financial incentives, such as tax concessions, to companies. By favouring privatisation and encouraging multinational companies to move their operations to developing countries, one of the supposed objectives of economic liberalisation was to assist ‘development’ and the transfer of pharmaceutical technology to developing countries.

However, there has been a lack of ‘diffusion’ of knowledge and technology. In fact, it is the lack of technology transfer measures in export-processing zones that attract pharmaceutical multinational companies. With firm control over technology, even when high-tech methods of production are used they can be kept away from the domestic economy. The southern Indian city of Bangalore has, ‘thanks to Western companies’ passion for outsourcing, grown into one of the world’s premier technology hubs and is the centre of the India’s growing IT industry’ (its export revenues rose from US$150 million in 1990 to $4 billion in 1999). However, areas surrounding Bangalore are in fact extremely ‘low-tech’. In Karnataka (also state capital), there were still only 2.73 internet connections per 1000 people in 1999; in even poorer states (like Orissa), that rate dropped to 0.12 connections per 1000 people.

‘As it turned out, there has been virtually no transfer of relevant technology by these companies to developing countries … in fact, by using the power that control over technology brings, they have eliminated many potential competitors and prevented indigenous pharmaceutical industries from developing to meet the real needs of the people of the third world’ (Kanji et al 1992). Thus, the evidence leads me to personally agree with this line and disagree that diffusion can be relied upon to make essential drugs available at times when they are needed most in developing countries.

Multinationals provide employment in developing countries, it is typically very low paid with little security, and the products (and the techniques and profits) go back to the companies of developed countries. Unfortunately, even though direct foreign investment provides low-paid jobs and does not transfer technology, those jobs are still vital for many that live in poverty and have limited employment options. This highlights why re-regulation of the corporate sector is required so that markets meet certain social criteria. For example, interfering with markets to reduce the price of essential drugs in developing countries.

“Pharmaceuticals, they are a commodity. But they are not just a commodity. There is an ethical side to this because they’re a commodity that you may be forced to take to save your life. And that gives them altogether a deeper significance. But they [big pharmaceutical companies] have to realize that they’re not just pushing pills, they’re pushing life or death. And I believe that they don’t always remember that. Indeed I believe that they often forget it completely.” (Drummond 2003)

3. GENERIC DRUG INDUSTRIES AND ESSENTIAL DRUGS

In many countries with large poor populations, such as Argentina, China, Egypt and India, national policy enabled a locally financed pharmaceutical industry to develop almost exclusively engaged in manufacturing generic drugs. These industries could ‘copy cat’ certain drugs and in some cases the manufacturing processes of other pharmaceutical companies.

This Chapter illustrates the main benefits to health of generic production in developing countries, in terms of increasing the availability of essential drugs. It uses India as a case study.

Benefits

In countries with generic drug industries, drug prices are low because the primary national objective is for the government to provide affordable drugs for its people, and develop the industry for economic welfare and greater self-sufficiency. India holds a record, with prices for many drugs 10 to 100 times lower than in developed countries. The introduction of generic antiretroviral drugs by Indian companies reduced the price of these drugs by 97% (Henry et al 2002). Research and development efforts by generic drug industries have also led to the development of vaccines against leprosy and hepatitis B, and anti-cancer drugs .

Multinational companies have less economic control over the market because the domestic drug industry controls the domestic market. Therefore, poorer people are less dependent on multinational companies and the extortionate prices that they can charge for drugs. In addition to lower cost, as will be seen from the case study of India, generic drugs have the advantage of being competitive in quality to those produced by large multinationals, originating from developed countries.

A case study of India

In India, multinationals held only a 20 per cent market share in 2000 : national pharmaceuticals have gained knowledge and capacities in research and development, which has enabled them to replicate manufacturing processes for already known drugs, and develop a bulk drug industry for various chemicals and antibiotics.

India’s local drug companies have long benefited from a relaxed patent regime.

History of patent law in India (up until the 1970s)

1856 The Act Vi Of 1856 On Protection Of Inventions Based On The British Patent Law Of

1852 Certain Exclusive Privileges Granted To Inventors Of New Manufacturers For A Period Of 14 Years.

1859 The Act Modified As Act Xv; Patent Monopolies Called Exclusive Privileges (Making. Selling And Using Inventions In India And Authorising Others To Do So For 14 Years From Date Of Filing Specification).

1872 The Patents & Designs Protection Act.

1883

The Protection Of Inventions Act.

1888

Consolidated As The Inventions & Designs Act.

1911

The Indian Patents & Designs Act.

1999

On March 26, 1999 Patents (Amendment) Act, (1999) Came Into Force From 01-01-1995.

1972

The Patents Act (Act 39 Of 1970) Came Into Force On 20th April 1972.

Source: Adapted from http://www.legalserviceindia.com/articles/patents_geographical.htm accessed 10th November 2004

In the past, India honoured patents on manufacturing processes but not patents on products, which allowed generic drug companies to ‘reverse engineer and manufacture drugs’ without paying royalties to the companies who own patents on those drugs (McNeil 2001).

The features of the 1970 Patents Act helped to promote India’s pharmaceutical industry, which specialises in generics. It has enabled considerable technological innovations and development of knowledge, with its provisions enabling the drug industry to grow at a rapid pace. (The Lancet, 2004)

The Indian Pharmaceutical industry is the pre-eminent sector in India, in terms of scientific and technological developments. India ranks among the top 15 drug manufacturing countries in the world. In 2004, the domestic drug industry met approximately ‘70% of India’s demand for bulk drugs, drug intermediates, chemicals, pharmaceutical formulations in the form of tablets, capsules and orals’ (Lancet 2004). India’s generic drug industry has enabled a huge number of people to afford essential drugs that would have otherwise been out of reach because of patent induced high prices and unavailability. Generic production therefore promoted self-sufficiency and assisted economic development.

“The Indian firm Cipla’s offer to MSF [Médecins sans frontiéres] to provide a cocktail of antiretrovirals for less than $350 a year (compared to the big boys’ $10,000) resounded like a thunderbolt. Suddenly, the emergence in the South of very low cost generics producers seems credible” .

4. IMPACTS OF THE TRIPs AGREEMENT

This chapter discusses the impacts of the TRIPs agreement (January 2005) on India’s pharmaceutical industry. It starts by mentioning the pressure and reasoning behind India’s decision to comply with TRIPs, and then examines the positive and negative aspects of the agreement, which might emerge in the next few years.

India amended the law governing patents i.e. Patents Act, 1970 by Patent (Amendment) Act, 2002, on 20th May 2003.

The main features of Patent Act, 2002, were:

? Enlargement of non-patentable inventions

? Twenty year patent term for all patents

? Burden of proof on defendant in case of infringement when a patent is for the process of producing a new product

? Making importation a right of a patentee

This Act prepared India for full TRIPs compliance, and currently, India is adapting to the changes to the pharmaceutical industry under the TRIPs Agreement, which came into force on January 1st 2005.

Indian companies have now lost the opportunity to develop processes for patent protected drugs. This could allow multinational companies to establish a monopoly over the Indian drug market, unless Indian pharmaceutical companies can compete.

Pressure to comply with TRIPs

There was pressure for India to meet TRIPs requirements because India would have otherwise been disciplined by the WTO, and ‘India’s market access rights would have been jeopardised’ along with other benefits (Lancet 2004).

There was intense lobbying, predominantly by the United States pharmaceutical industry, to impose the TRIPs agreement. PhMRA claimed that the US pharmaceutical industry loses US$500 million annually only through a lack of patent protection on drugs in India . The GlaxoSmithKlein CEO Jean-Pierre Garnier described the Indian pharmaceutical industry as price-undercutting “pirates”, and said the company “is not doing this to get a Nobel Prize.”

In response, Hamied, on behalf of the Indian pharmaceutical firm CIPLA, said “Indeed, we are a commercial company. But I market 400 products in India. If I don’t make money on a half-dozen of them, it’s no big deal. I don’t make any money on the cancer drugs we sell or drugs for thalassemia, a blood disorder that’s common in India. We sell these drugs virtually at cost because I don’t want to make money off these diseases which cause the whole fabric of society to crumble. India alone will have 35 million HIV cases by 2005, and it’s something we can’t afford.” (Lindsey 2001)

4.1 Main advantages

On the one hand, TRIPs could promote more research and development and stimulate competition to produce new drugs. On the other hand, India will lose its ability to generically produce essential drugs for its majority poor population.

Generic drug production in India has meant that research and development of new drugs has taken a back seat. Indian companies are ‘getting actively engaged in research and development of their own molecules/pharmaceutical products and processes . The Indian government is providing a range of tax concessions designed to encourage research and development, including a 10-year tax holiday on income arising from research and development. (Lancet 2004)

Thus, TRIPs is increasing investment in the research and development of new drugs. It promotes economic growth of the Indian drug industry, because companies now have patent induced control over the price and availability of new drugs. India already has more pharmaceutical products approved by the United States Food and Drug Administration (FDA) than any foreign country, which is helping the industry to obtain and enforce patents. The Indian pharmaceutical industry will be able to increase its contribution to drug discovery and development, which, given the cost-effectiveness of research and development in India, can only increase. (BJU 2003)

‘TRIPs will cement India’s position as a global pharmaceutical outsourcing hub and offshore location for research and development and other support services including strategic services in patenting and related matters.’ India is also becoming an attractive location for the outsourcing of patent drafting . In addition to these benefits to the industry as a whole, TRIPs has also imposed higher quality standards for drugs and processing.

Proponents of TRIPs argue that patent induced privatisation of the industry will lead to growth of the domestic industry that will increase the availability of all biotechnology products to poor people i.e. diffusion. However, as mentioned before, patents can reduce the availability of new essential drugs by restricting short term diffusion. Thus, although TRIPs may encourage more research and development of drugs, these drugs will be less available to poorer people who cannot afford them at times when they need them most.

However, there are counter-arguments that TRIPs will not make new drugs unaffordable. For example, Shantha Biotech, which was first to launch the indigenously developed hepatitis-B vaccine in the country in 1997, has secured the World Health Organisation (WHO) certification for its product “Shanvac B” (now marketed at “Hepashield”). Shantha is the only company in India to get this certification for the hepatitis-B vaccine, and it is being provided at a quarter the price of the previously imported vaccine (Jayaraman 2001).

However, despite greater availability of a few specific drugs, linked to some Indian companies obtaining licenses, the price of new drugs over the next few years is likely to be relatively high in terms of what the population is used to and can afford.

4.2 Main Disadvantages

Under TRIPs, there will be more consolidation in the pharmaceutical industry, as larger companies are more capable of using patents to secure higher profits. Linked to economies of scale, these companies will be able to exploit the patent system to out-compete other companies. Multinationals such as GlaxoSmithKline, which already operate in India, will have a particular advantage. Smaller companies will be less capable of buying into the strict patent system. Merely securing a patent from America’s patent office costs at least $4000. Defending it in court can cost millions (Economist 2002).

Although TRIPs does not patent old drugs already on the market, there is still a backlog of products waiting for grant of product patents, some which may already be on the market, as product claim applications have been filed since January 1 1995. Unless Indian companies have stopped manufacturing such drugs completely, a large number of litigation and infringement suits will ensue .

TRIPs restricts India’s generic industry and longer patents provide additional incentive for foreign investment in India. This could actually pose a threat to India’s pharmaceutical companies. At an international level, Indian companies’ advantage in cheap vaccines for hepatitis or rabies may be eroded by potential development of cocktail vaccines that promise delivery of multiple vaccines in a single shot (Jayaraman 2003). Although TRIPs encourages growth of the industry and creates some large winners, it creates many losers.

Since the 1970s, India’s poor population has benefited from a range of drugs available at relatively low prices. The industry is efficient at making generic varieties and has a number of different companies able to produce such drugs, which means that new drugs on the market can be imitated both quickly and easily. This provides a means of sharing the benefits of technological advancement in developed countries with developing countries, usually isolated by a gap in technology. According to some reports, India is home to the fastest growing rate of new infections in the world (Hankins 2003). Without the benefits of generic drug production, the population of India could suddenly be faced with a health crisis.

According to a recent Times of India report; the price of cancer drug Gleevac has risen from to Indian Rs120, 000 ($2,590) from its price just a few months ago of Indian Rs4000 ($86.35) – 30 times more, because of TRIPs .

4.3 The Doha Agreement and Compulsory Licensing

TRIPs has a clause that allows governments to override patents and provide essential drugs to the poor in some circumstances. Working with Non Government Organisations (NGOs), Brazil and a group of African countries pressured policymakers to revise TRIPs. The meeting in Doha, November 2001, between the world’s trade ministers attempting to organise a new round of trade negotiations (Health Affairs 2004), led to the Doha “Declaration on the TRIPS Agreement and Public Health.” This declaration affirmed that TRIPS “should be interpreted and implemented in a manner supportive of WTO members’ right to protect public health and, in particular, to promote access to medicines for all.”

‘It affirmed the right of nations to use the exceptions of TRIPS, such as the compulsory licensing provision, to meet public health concerns, specifically stating that “public health crises, including those related to HIV/AIDS, tuberculosis, malaria and other epidemics, can represent a national emergency” and thus facilitate the right to use compulsory licensing’ (World Trade Organisation Declaration 2001).

‘Governments can issue compulsory licenses to allow other companies to make a patented product or use a patented process under licence without the consent of the patent owner, but only under certain conditions aimed at safeguarding the legitimate interests of the patent holder’ . For example, the Supreme Court of India may interfere to justify the dispensation of drugs at an affordable price on the grounds of concern for public suffering. They can grant a compulsory license for companies to produce a generic drug. If required, the government may also fix the price of these drugs as well as the royalties to be paid to the inventor for the remaining term of patent .

A further 30 August 2003 Amendment to the Doha Agreement enables governments to let their pharmaceuticals generically produce drugs for other countries, as well as their own people, in times of ‘acute suffering.’ Previously, Article 31(f) of the TRIPS Agreement stated that products made under compulsory licensing must be “predominantly for the supply of the domestic market”. (WTO Press Release 2003) This applied directly to countries that could manufacture drugs, limiting the amount they could export. It will now be possible for countries to import cheap generic drugs in times of ‘acute suffering’.

This was regarded as a victory by the developing world and as a defeat by the research-based drug industry.

However, there are serious questions as to whether compulsory licensing can even work. ‘No generic medicines have been manufactured this way in the past decade, treating no patients in any country worldwide’ (Attaran 2003). ‘Threats of compulsory licensing might be useful when rattling sabres with drug companies to lower medicine prices, but only a single (and unusually powerful) developing country, Brazil, has ever succeeded in doing so. As such, compulsory licensing or the threat of it has seldom had any practical effect for public health’ (Attaran 2004).

Nevertheless, the pharmaceutical industry in developed countries has objected, with the United States leading the objections. ‘America’s drug industry has fought tooth and nail to impose the narrowest possible interpretation of the Doha declaration, and wants to restrict the deal to drugs to combat HIV/Aids, malaria, TB and a shortlist of other diseases “unique to Africa” .’ This means that the industry is against the use of compulsory licencing, and only prepared to accept its use in Africa, which is very unethical when most developing countries do not have sufficient access to essential drugs. It highlights the ruthlessness of paharnceutical companies, in terms of seeking maximum profit even at the expense of the world’s health.

Compulsory licensing and the amendments to TRIPs are positive in respect to health care in developing countries. The changes suggest that governments do respond to pressure and there has already been some admission on their part that TRIPs could be revised under a more ethical framework. However, even with these amendments, TRIPs does not tackle the root problems of unequal power relations between developed and developing countries, which give rise to the unequal access to pharmaceutical biotechnology.

5. CONCLUSION

This chapter argues in favour of alternatives to TRIPs. It starts by summarising the benefit of increased public funding in research and development. It shows the close ties between science, business and government and goes on to explores wider policies, highlighting the ways that the scientific community can promote more ethical drug policy.

Public funding

If a larger proportion of research and development of new drugs was publicly funded, then this would encourage more investment into the development of essential drugs, which are needed in developing countries.

Data submitted to the Joint Economic Committee of Congress by the National Bureau of Economic Research reveals that public research, not private, led to 15 of the 21 most essential drugs introduced between 1965 and 1992, and other studies in the 1990s suggest that only a minority of important drug discoveries in recent years (estimates range from 17% to 40%) were the result of commercial research (O’Leary 2002). This shows that public funding is paramount to the production of essential drugs, and therefore to health in developing countries. The combined effect of shortening patents and increasing public funding in the pharmaceutical industry would ensure that not only are more essential rugs produced, but that they also reach those who need them.

The next section shows that scientists need to devote more attention to the unethical nature of drug policy and voice concerns to the public. This involves deconstructing a scientific agenda from the economic agenda of government and big business.

Governments, science and big business

Scientists ideally work to discover “truth” and gather knowledge to help people. Research and development, however, tends to be profit-driven, and there are conflicts between seeking scientific advancement and helping people, because helping people is not always profitable. Government policy supports the pharmaceutical industry, as strict patents favour the expansion if the industry and economic growth. Although business and governments are therefore dependent on scientists to design new drugs and technology, their common agenda allows them to exert political and economic control over science. Any social objective to deliver essential drugs to the poor is lost in this agenda. Scientific search for ‘truth’ therefore becomes a quest for profit, because of the vested interests of government and business.

The United States Office of Management and Budget reported that academia, in addition to federal funding, receives millions of dollars for research from donors and the private industry.

“Bioethicists at the University of Toronto take funding from GlaxoSmithKline, Pfizer and Merck to write editorials on bringing biotechnology to the developing world . . . Bioethicists at the University of Pennsylvania take money from Pfizer to write an article explaining why physicians should not accept gifts from companies like Pfizer. (Engler 2004) This shows the irony whereby large companies control information which should criticise their activities.

In the United States, even federal money comes with strings attached. Federally funded experiments and research are subject to massive amounts of bureaucratic regulation and oversight. Members of academia are now increasingly involved in the private sector. ‘This means that, even in basic research, funding is not free from profit motives or federal regulation, and the research is not necessarily a pure drive for more knowledge .’ Thus, it is hard to separate science from the profit motives of business and politics, which share a common agenda. Scientific information can be biased because it is conditioned by this agenda.

‘Today the most powerful players outside government are private corporations. They contribute financially to political parties in the US, Europe and elsewhere and a neo-liberal trade agenda has become the mantra of virtually all elected political parties. The price governments have to pay for this support is to ensure that their electoral platform corresponds quite closely to the agenda of big business.’ (Shutt 2001)

It is unfortunate that science, politics and business are so intertwined that it is difficult for the benefits of biotechnology and knowledge to jump the political and economic hurdles to reach developing countries.

It means that scientists need to be more vigilant about the type of drugs they help to produce, and what they endorse. Moreover, the scientific community need to play a more active role in raising awareness about pharmaceutical issues, so that people become more informed and capable of working with other groups, such as NGOs and members of the scientific community, to press governments for change. Scientists and the public can apply pressure to regulate the corporate sector, by imposing corporate social standards in the trade of drugs, and deconstruct those pressures from big business that controls science and information.

Public mistrust

Governments have control over science. They manipulate the science often finding a balance between where public support lies and where the money lies. This has resulted in public mistrust and scepticism in science. In the UK, for example, the public was informed by government that BSE could not be transmitted from cattle to humans, and the government promoted British beef and the industry for around ten years, before it emerged that there was a human form of the disease, variant CJD. Mistrust and scepticism was the result.

Scientific ignorance can also weaken the ties between science and the public. People may ignore the science because it is viewed as obscuring a larger picture (Michael, 1996). Science can be difficult to understand and, as mentioned, communication through the media reflects the agenda of business and government. If people do not trust the scientific media or understand the science of issues, their uncertainty can be compounded by a general mistrust of science and the scientific community. It is also important to consider that people also have different views on issues, which highlights the need for better communication and debate. New abortion procedures to people who are already pro-life are simply ‘more efficient ways to kill unborn babies,’ whereas to pro-choice advocates they are safer, less intrusive ways of protecting the choices and health of mothers .

People need to feel that a scientific organisation has no vested interests. This is why independent organisations for public scientific awareness and education are important to build up this trust. In Britain, this includes COPUS (Committee on Public Understanding of Science) run by the Royal Society. There is also the Wellcome Trust, which informs the public on science policy and practice (as well as contributing to researching social implications of sciences) “The culture of science needs a sea-change, in favour of open and positive communication with the media.’ If these independent scientific institutions, collaborating with NGOs and the scientific community, can succeed in informing and educating people, ‘it will pay for itself many times over in renewed public trust’. (UK Select Committee on Science and Technology 2000)

Agreeing with this line of thinking, if independent scientific organisations can give more attention to health problems in developing countries, then they can raise public awareness about these issues. The potential to change policy rests on a more informed public.

Individual scientists and the scientific community, collaborating with independent organisations, can debate ethical issues and highlight the importance of improving health in developing countries by increasing the availability of essential drugs. “Some of the favourite topics of bioethicists seem trivial compared with the important health issues facing people in the world’s poor countries and in impoverished regions in rich countries” (BMJ 2004). “The risk of dying from maternal causes in sub Saharan Africa is 1 in 16. In Western Europe it is 1 in 4000.” Bioethicists could focus their attention on the morality of a world system that allows “500 000 girls and women [to] die every year – 99% in developing countries – from preventable conditions and injuries related to pregnancy and childbirth.” (Lancet 2004)

It is especially important to make younger people more aware of the issues pertaining to the use of strict patents, in order to produce an informed public in the long term. Thus, there needs to be more attention to such issues in colleges and universities, as part of a curriculum, then younger people could debate for themselves the fairness of TRIPs. Again, a more informed public would be less likely to accept the ‘unfair’ policies enforced by their governments.

Therefore, policy must change. After all, it is the wider policies that enable corporations to exploit poorer people, who cannot afford to buy into technology. Roy Vagelos, the former head of Merck, claims that “‘A corporation with stockholders can’t stoke up a laboratory that will focus on Third World diseases, because it will go broke’ … ‘That’s a social problem, and industry shouldn’t be expected to solve it .’ Although biased from an industry viewpoint, he does make the point that companies are by definition profit motivated and that giving companies greater freedom is not in the best interests of health, especially poorer people.

Historical policy context

‘One cannot separate economics, political science, and history. Politics is the control of the economy. History, when accurately and fully recorded, is that story.’ (Smith, 1994). There are wider policies that need to be considered. Patents are a form of imperialism.

In the nineteenth and twentieth centuries rich, powerful states, including Britain and other European countries, exploited third world colonies. Richer states exploited the natural resources and workforce of the colony, and efficient supply chains were constructed for this purpose, based on unequal power relations. Although developing countries gained economic dependence in the 1960s and early 1970s, an economic dependence continued. Developed countries lent large sums of money to developing countries, and these debts became unpayable due to the rise in interest rates. Developing countries, instead of investing in health, still have to repay these debts, and they have become economically dependent on the companies and governments of developed countries, who control trade policy.

Thus, based on a historical trade policy context, governments in developed countries have the responsibility to help developing countries supply drugs to their populations.

‘Enormous agricultural subsidies ($310 billion) in developed countries deny the agrarian populations of poor countries the opportunity to export products and accumulate wealth’ (OECD, Paris 2002). The subsidies alone are roughly equal to the entire gross domestic product (GDP) of sub-Saharan Africa. ‘Redirecting just 1 percent of this government spending to global health would more than double the foreign aid spent to control HIV/AIDS, malaria, and tuberculosis combined.’

President Yoweri Museveni of Uganda opines that giving priority to medicine patents in trade negotiations has been a “red herring” and that “if there were no agricultural subsidies…we [Africans] would earn enough money to buy all the drugs we want” (Wall Street Journal Editorial 2003). Although I think that reducing agricultural subsidies is just one element of improving pharmaceutical infrastructure in developing countries, he makes a valid point that improving the distribution of drugs is linked to redistributing wealth between countries.

Kanji et al (1992) take this further to point out that a country’s pharmaceutical and health policy cannot be isolated from its general development startegy. November et al 1982 elaborates by stating that ‘dependence on products [drugs] and the agents and institutions which make them available, fosters the notion that the solution to illness resides in the purchase and consumption of medications rather than improvements in living condtions’ (November et al 1981).

I agree with this line of reasoning that links the unavailability of essential drugs in developing countries to wider policies, and highlights the need for more sustainable development that takes into account the vulnerability of the poor by imposing strict social criteria in drug policy and trade, rather than strict patents (economic criteria). It should be emphasised that shortening the time length of patents is one important factor among many that could improve the avilability of essential drugs and all round healthcare in developing countries.

Melrose, 1982, says that ‘companies should keep to their declared obligation of making sure that drugs “have full regard to the needs of public health” and demonstrate special social responsibility in poor countries by not advertising non-essential multivitamin tonics, cough and cold preparations and expensive and irrational combination drugs (Melrose 1982).’ Although I agree that corporations need to behave more responsibly, this should be a legal prerequisite rather than an ‘obligation.’

Ironically, there is great potential and ability of the large pharmaceutical firms, which have been so criticised in this text, to develop more essential drugs for the poor. The private sector has a great deal of knowledge and capital, which can be used to produce new essential and non-essential drugs. Thus, although public funding would help to give priority to essential drugs, the private sector should still contribute significantly. This is especially the case in the foreseeable future because the private sector is largely responsible for the production of all new drugs. ‘If Pfizer, Merck, Glaxo-Wellcome, and other pharmaceutical companies do not develop drugs that plague developing nations then …there is a real danger that people in developing nations will become therapeutic orphans’ if the pharmaceutical companies lack the proper incentives to develop drugs for the developing world’ (Reich 1979-1981).

Thus, the final part of the conclusion looks at ways of regulating the corporate sector.

Regulating the corporate sector

Governments can regulate the pharmaceutical industry in two broad ways, either by direct control, usually by making legal requirements, or by creating incentives. A mixture of the two strategies can be effective.

Control involves regulating and monitoring biotechnology companies and pharmaceuticals through the creation of legal requirements. For example, when these organisations develop drugs/ vaccines, governments can mandate them to comply with research and manufacturing standards to ensure products are safe and efficacious . Governments can control drug prices furthermore because they often have authority over the granting and use of patents. For example, in the US, the government has the right to license drugs to other companies if the patentee does not make it available to the public on reasonable price and terms. Such a right is currently focused on drugs that have been developed with public support . It needs to extend to drugs developed with private support.

Although laws are paramount in regulating corporate conduct, there is the issue that corporations have no moral obligations over and above the requirement to comply with the law (Friedman 1970). Governments can, in this regard, create further incentives for these organisations to engage in developing drugs/ vaccines that benefit populations in developing countries. For example, it could create subsidies or offer grants for research in certain areas. The Orphan Drug Act, introduced in the US in 1983, creates tax and marketing incentives for those companies that engage in creating drugs for rare diseases. Also, governments could commit to purchasing future critical drugs/ vaccines in order to minimise the ‘private entity’s financial risk’ .

Ideally, TRIPs should be replaced by policy which curtails the power and influence of the private sector, by shortening the time length of patents, allowing generic production in developing countries, and at the same time increasing public funding of research and development.

In summary, making more ‘ethical’ drug policy is dependent on:

? International policies

- removing TRIPs, shortening the length of patents; allowing developing countries to generically produce essential drugs.

- subsidising research and development of essential drugs.

- regulating the corporate sector: ensuring that essential drugs are reasonable priced; ‘a price that allows the company to earn its money but also promotes accessibility and equity’ (Brody 1996) & (Spinello 1992).

? National policies

- providing funding and technical support for NGOs who raise awareness of the issues surrounding the use of strict patents in the pharm,aceutical industry.

- Promoting education in schools; collabortaing with independent scientific organisations to provide information publicly, through the media.

- Setting an example by increasing public funding in research and development; prioritising investments in essential drug production; greater transparency; governments more accountable to the public than companies.

- Campaigning for fairer drug policies at the international level

? Education and public awareness

- Informed people in developed countries, able to raise issues pertaining to the use of strict patents and resist ‘unfair’ policies.

? The role of the scientific community

- a scientific community that focuses more on third world issues and health problems, and raises awareness about the underlying policies that cause an imbalance in wealth and health.

- Independent scientific organisations that can communicate information to the public and collaborate with scientists and NGOs, and raise concerns with business and government.

- campaigning for ‘truth’ and sharing of knowledge, as well as more regulation of the corporate sector, and governments who are more accountable to the public.

This paper highlights the interconnectedness of social, economic and political factors which can improve the availability of essential drugs in developing countries.

To end on a more positive note, pharmaceutical companies have created life-saving drugs which have helped to save millions of lives, but these drugs have tremendous potential to save many more lives and alleviate suffering by helping to curb the incidence of various infectious diseases, which cripple the social and economic fabric of developing countries. The paper also highlights the importance of better understanding the impacts of TRIPs in developed countries, so that governments are pressed to change policies at the national and international level. The role of the scientific community is critical, in terms of having more say and control over drug policy, and helping to increase public awareness about drug policy. Ultimately, a concerted effort between the scientific community, public and NGOs can resist ‘unfair’ drug policy and some of the exploitative practices of pharmaceutical companies.

7. REFERENCES

Books/Journals

Attaran, A. (2003) Assessing and Answering Paragraph 6 of the Doha Declaration on the TRIPS Agreement and Public Health: The Case for Greater Flexibility and a Non-Justifiability Solution. Emory International Law Review 17, no. 2 (2003): 743–780.

Benatar, S. (2000) Avoiding Exploitation in Clinical Research. Cambridge Quarterly of Healthcare Ethics 2000; 9: 562-65

BJU (2003) Fitzpatrick (Ed) International Volume 92 No

        SCIENCE AND TECHNOLOGY: THEIR RELATIONSHIP WITH LAW

The intellectual thinking of man, since time immemorial, has resulted in the development of science and technology. The principles of science and technology have developed in response to differing objects of interest. Science and technology have had a great impact on the way we live. Law has tried to regulate the use and abuse of science and the extent of its application. The major question however is whether we are well equipped with the laws to regulate the use of such technologies.

 

The subject Law, Science and Technology is of great relevance today when Courts have become ”activists” and there has been a tremendous advance in science and technology. The need for sharpening the evidentiary techniques employed in Courts with the help of science and technology cannot be denied. At the same time, one has to be conscious of the limitations. The limitations of both science and the law and the need for both to join hands to strengthen the court-systems by legally admissible scientific evidence must be considered.

 

 

MEANING AND DEFINITIONS

 

 

v SCIENCE

 

The word “Science” comes from the Latin word scientia, meaning “knowledge” or “knowing”. According to Webster’s New Collegiate Dictionary, the definition of science is “knowledge attained through study or practice,” or “knowledge covering general truths of the operation of general laws, esp. as obtained and tested through scientific method [and] concerned with the physical world.”

 

In other words, science refers to a system of acquiring knowledge. This system uses observation and experimentation to describe and explain natural phenomena. The term science also refers to the organized body of knowledge that people have gained using that system. Less formally, the word science often describes any systematic field of study or the knowledge gained from it. Perhaps the most general description is that the purpose of science is to produce useful models of reality. Most scientific investigations use some form of the scientific method. Science as defined above is sometimes called pure science to differentiate it from applied science, which is the application of research to human needs. Fields of science are commonly classified along two major lines:

-Natural sciences, the study of the natural world, and

-Social sciences, the systematic study of human behavior and society.

 

 

v TECHNOLOGY

 

The word “technology” comes from the Greek word technologia, which means the systematic treatment of an art, form or skill or a manner of accomplishing a task especially using technical processes, methods or knowledge. In other words, the term technology refers to the application of science, especially to commercial or industrial objects.

 

 

v LAW

 

A rule of conduct established and enforced by the authority, legislation, or custom of a given community, State, or nation. In essence, law is the tangible and intangible context that links individuals to the community. In addition, it defines responsibilities of individuals to society as much as it defines and protects individual rights. In short, it is a pillar of good governance.

 

INTER-RELATIONSHIP OF SCIENCE AND LAW

 

Today”s high technology society forces the two professions (law and science) to interact in a wide array of cases. Legal disputes involving patents, product liability, environmental torts, regulatory proceedings and criminal cases are some fields of such interaction. Further, law and science encounter each other in the laboratory through a number of actions governing intellectual property, research misconduct, etc. The fact-finding agendas of the two disciplines have frequently begun to overlap, if not merge. Because there is a general lack of understanding of each culture, these interactions often lead to a cognitive friction that is both disturbing and costly to the society. Scientists are distrustful of the lawyers and legal proceedings and prefer not to venture into the courtroom. The scientific community that believes that its methods and procedures are above legal scrutiny and questioning often frustrates lawyers. Lawyers and scientists seldom speak the same language. Each should develop a better understanding of the principles and methods of the other”s profession. Bridging the gap between the two cultures is a challenge that this conference seeks to address.

Science and technology seek knowledge through an open-ended search for expanded understanding, whose truths are subject to revision. Law, too, conducts an open-ended search for expanded understanding; however, it demands definite findings of fact at given points in time. The meeting of these two disciplines in the courtroom magnifies the differences between the two cultures. Even the search of truth does not serve the same aims and may not be subject to the same constraints and requirements.

 

The Courts today deal with complex cases relating to highly sophisticated crimes where criminals take care to erase all evidence of their involvement. In such cases, modernized, scientific and highly sophisticated methods are required to trace the involvement of criminals. A report published in the New York Times (August 7, 2008) stated that with a new analytical technique, a fingerprint can reveal much more than the identity of a person. It can also identify what the person has been touching: drugs, explosives or poisons, for example. Such a laboratory technique can have a wider application in crime investigation. The chemical signature could also help crime investigators trace out one fingerprint out of the smudges of many overlapping prints if the person had been exposed to a specific chemical.

 

Then there are serious cases of medical negligence and related torts where rival parties seek to rely on expert evidence. Even in the field of environmental pollution involving toxic substances, there is serious difficulty in finding out the levels of danger, the extent of actual and latent damage to humans and environment, and there are uncertainties in accepting the technology installed by the polluter to conform to environmental standards. In some civil cases where handwriting, forgery, or paternity issues are involved there is extensive use of scientific techniques. The Courts are thus dependent and, in fact, compelled to analyse evidence of experts examined on each side. There is again the difficulty of evaluating the conflicting expert evidence adduced by the contesting parties in an adversarial judicial process. However, none can deny that expert witnesses retained by parties often are partisan. In such cases, the technique of “Hot Tubbing” must be embraced. The Australians discovered the technique of “Hot Tubbing” to improve expert evidence. In this procedure, also called concurrent evidence, parties still choose experts, but they testify together at trial-discussing the case, asking each other questions, responding to inquiries from the judge and the lawyers, finding common ground and sharpening the open issues. According to UCLA law professor Jennifer Mnookin, “‘Hot Tubbing is much more interesting than neutral experts.”

 

DEVELOPMENTS TILL DATE AND THE RECENT TREND

 

 

In this era of genomics, of crime prevention and of conviction the following questions need special attention:

 

 

Is the legal profession ready for this new information?

 

How would these techniques benefit the justice delivery system?

 

Is our society ready for the implications that genomics brings to every facet of our lives?

 

Is our society struggling with the ethical and social issues thrown up by the new biology such as human cloning, use of animals in biomedical research, etc.?

 

With the rapid progress in science, are laws in their present form really able to deliver justice efficiently or is some rethinking in the form of new laws or amendments to existing laws required?

 

 

Before any major changes can be effected, all stakeholders have to sit together and look for the answers to these unsolved problems. This contact which was missing in India became a reality when the first ever conference of this kind was held. This conference, who”s Chairman was the erstwhile President of India; Dr. A.P.J. Abdul Kalam formed the basis of the ”Hyderabad Declaration on Impact of New Biology on Justice Delivery System”. These deliberations of law were co-organised by the Centre for DNA Fingerprinting and Diagnostics (CDFD) and NALSAR University of law. The deliberations brought together the Judges of the Supreme Court and the High Courts, representatives from various Commissions like the Law Commission and the Human Rights Commission, Directors of the National Law Schools and other legal luminaries, lawyers, scientists, doctors, bio-industrialists, NGO”s, police investigators, journalists and a couple of participants from abroad. Inter alia the meeting emphasized the following:

 

To establish a Human Genetics Commission to provide technical and strategic advice about the current and emerging issues in Human Genetics, and a consultative mechanism for development oh National Genetics Policy and guidelines in that area;

 

To establish an Ethics Committee to assess ethical, legal and social issues raised by research on human genome and use of DNA databases;

 

To statutorily define status of human embryo so that research on embryonic cells is done under statutory control and regulations;

 

To devise a mechanism to establish links with the International Community of Dispute for resolution of new issues in new biology;

 

To suitably amend the Patents law to strike a fair balance between public and private interests in case of patents that assert property rights over genetic material.

 

IMPACT OF SCIENCE ON INVESTIGATION

 

Science is a compelling and commanding weapon in the armoury of administration of justice. Forensic Science is a science pertaining to law. In particular, it works as the branch, which is used mainly in criminal investigation and findings of which can lead to arrests and convictions. Undoubtedly, scientific investigations generate evidence in favour of the victims and against the accused. Forensic Science helps in providing the identity of the culprit or the accused who willingly or unwillingly, in most of the cases, leaves the mark of his crime, thereby making the job of the investigator much easier in proving the culpability with the aid of Forensic Science.

 

Forensic Science provides scientific study for investigation of crime. The growth, development and use of Forensic Science in detection of crime in developed countries are tremendous and increasing with new techniques. The area of Forensic Science in India has not been properly looked into, as it ought to have been and more so when the average acquittal rate is alarmingly high. Therefore, in our country, also, the necessity and importance of Forensic Science hardly needs any emphasis. The lack of understanding and appreciation of the importance of specialists in general, by non-specialists, in all fields, cannot be denied. The field of Forensic Science is no exception. Many a time, neither the judge, nor the lawyer nor even the police appreciate fully, the advances or the extensive, promising potentialities of the science and the fusion of new technologies, methodologies, modalities and research. Multitask and multi-professional nature of Forensic Science needs an inter-professional approach, which is, many a time, lacking. Therefore, sincere and serious efforts are required to be made to eliminate personal and professional bias of the involved personnel and professionals.

 

Forensic Science in criminal investigation and trial is principally concerned with materials and circuitously through materials, with men, places and time. It embraces all branches of science and applies them to the purposes of law. The scientific examination by Forensic Scientists adjoins a missing link or strengthens a weak chain of investigation.

 

Systematic uses of Forensic Science provide significant assistance in answering the following questions:

 

(i) How was the crime committed?

(ii) When was the crime committed?

(iii) Who committed the crime?

 

Law-enforcement agencies refer to Forensic Experts to help solve mysterious situations concerning human life and thereby, provide help and useful contribution to the criminal courts in the journey for search of truth in criminal trials. Forensic Science deals with various aspects, including routine post-mortem to sophisticated tracking piece like DNA analysis.

 

Unfortunately, techniques and methodology with necessary materials used extensively in Western countries has not successfully clicked in India because of a variety of reasons, the major one being the investment of huge finance. This science is also, at times, useful in finding out the truth in some of the civil cases.

 

The prosecution mainly calls Forensic Scientists as expert witnesses. The practice of the defense producing Forensic Scientists or the courts consulting on their own listed experts is not very much in vogue. In fact, there is an acute need to bridge the communication gap that presently exists between lawyers, judges and Forensic Scientists. An independent analysis and evaluation of the scientist”s data and any subsequent testimony that may follow again depends on the judges” familiarity and understanding of the principles of Forensic Science.

 

In Western countries DNA test and profile is widely employed. In a country like ours, the need of such a test and profile may, hardly, be emphasized. In many developed countries, DNA test, genetic testing techniques and “racmization” — testing based on systematic examination of teeth and bite-marks has proved to be very useful. “Racmization” technique is currently used in Japan and Germany. It has potential to replace the traditional method that took into account the eruption and/or fusion and falling sequence of teeth. A fusion of such knowledge of Forensic Science and newly developed techniques will, undoubtedly, not only provide proper perspective and dimensions, but will also lead to detection of crime, and be a great help in search of the truth. It will be useful in the prevention and control of crimes and will provide required assistance to the parties to civil disputes, as well.

IMPACT OF SCIENCE ON THE JUSTICE DELIVERY SYSTEM

 

Common view is that the Indian justice administration system is slow. However, the major question is, is it the primary problem with Indian justice delivery system? The key issue is, is it is delivering justice at all in majority of cases? If a machine is faulty and makes bad products, then if one speeds up the machine, it will deliver more of those bad products. Therefore, if we speed up a malfunctioning Justice Administration System, it will simply toss up more of injustice. Is that the goal of any justice delivery system?

 

In the words of Justice Shayamal Kumar Sen, “The investigation process needs to be hastened; otherwise the criminal justice system will suffer”.

 

Justice Sen urged that research and development should be initiated in a way that would ensure that crime at the grassroots level is detected immediately and an effective management system should be introduced.

 

According to M P Singh, vice-chancellor, West Bengal National University Of Juridical Science, new techniques should be introduced as it will help in crime detection and the infrastructure should be developed in a way that will not only give momentum to effective criminal delivery system but will also hasten the entire long drawn process of investigation.

 

 

IMPACT OF SCIENCE ON COURT AND COURT PROCESSES

 

Science is not new to the Indian courts. Towards the end of 1989, one low-end computer was installed in Supreme Court of India for caveat matching. Immediately thereafter, in 1990, Justice GC Bharuka, as a sitting Judge at the Patna High Court initiated the process of court computerization. On his transfer to Karnataka in 1994, he undertook to introduce ICT (Information and Communucation Tecnologies) in the entire judiciary of the state of Karnataka.

Presently all the courts upto the taluka level are computerized. All the judicial officers and court staff are trained. There is complete automation from filing of a case to grant of a certified copy. Digital production of under-trial prisoners by video-conferencing is made possible. Through website, causelists of the Supreme Court of India, High Courts, district courts and various Tribunals is made available online, a day before.

 

 

SCIENCE AND GREY AREAS OF LAWS

 

v SPACE LAWS

 

Simply put, Space law is a part of International jurisprudence related to outer space. It follows customary practice in defining outer space, the region 100 km beyond the earth”s surface.

 

With the advancement of science and technology, things that were once considered impossible are now increasingly becoming possible and even fashionable. No one, some six decades back would have thought of going to space, let alone marrying in space. Thanks to science, this has now become a reality. For $2.3 million, a person can cement bonds from 62 miles straight up. Japanese company First Advantage, along with former X-Prize contender Rocketplane Global, is teaming up to offer weddings in space.

 

According to a LiveScience article, Rocketplane Global “is developing the XP Spaceplane for private suborbital spaceflights. The four-seat spaceship is slated to be about the size of a fighter jet and designed to carry two jet engines and a rocket engine to reach space.”

 

Besides shelling out $2.3 million, a person has to undergo four day”s worth of training for the one-hour ceremony. Training includes safety procedures, weightless maneuvering, and to explain to one”s family why they were not invited.

 

Not only this, Sapporo Breweries, the Japanese beer maker established in 1876, is brewing beer from barley descended from seeds that spent five months on the International Space Station ( ISS).

 

According to a CNN article, “The project is part of biological studies of the adaptability of plants to environmental changes and the impact from stresses such as space travel.”

If successful, the study will bring the world one-step closer to growing crops in space. In addition, fortunately, right now, scientists cannot tell the difference between the ISS grains and homegrown barley.

 

However, in order for commercial space activities to grow, there must be an attractive legal environment. Unfortunately existing space law consists mostly of some inter-governmental treaties that are quite inappropriate for business.

 

Space is just another place where humans are going to live. In addition, because space is almost limitless humans are going to live there in vast numbers in the future. In other words, it will become a completely new habitat. Today most activities in space are government ones because getting to and from space is so expensive. Once travel from orbit is cheap enough, as on earth, individuals, private companies and organizations will carry on most activities in space. At that time space activities will involve almost every industry, be it catering and drinks, fashion and entertainment, or law.

 

An attractive legal environment is needed to enable operating companies to plan passenger services and place orders for the vehicles that they require, and for manufacturers to finalize vehicle design details and raise the investment that they need in order to put the vehicles into production.

 

Sovereignty over outer space is another debatable issue that needs to be resolved.

 

 

 

CYBER LAWS AND JURISDICTIONAL ISSUES

 

 

With the advent of internet, a whole new category of crime that includes fraud, theft of services and data, copyright infringement, destruction of data through computer sabotage (viruses) and acts causing inconvenience to agencies comprising sensitive, secret or confidential functions has come up. Chances of use of the web as a forum for publication of defamatory content has increased multifold and there is a need for a clear, coherent expression of the law in this area.

 

Hacking time theft (stealing someone else”s internet time) pornography, sending threatening e-mail, defamatory e-mail, hacking e-mail, e-mail bombs, etc. are the main areas of cyber crime.

 

The people who commit cyber crimes are mostly those who have white-collar jobs, unlike usual criminals. They can even be high school kids. The territory that a cyber crime can stretch across is immense. It can go over continents

 

The principles that govern the exercise of criminal jurisdiction are based on the assumption that “crime” is a territorial phenomenon. Cyber crime makes these principles problematic in varying ways and in varying degrees. Unlike real-world crime, it is not physically grounded; it increasingly tends not to occur in a single sovereign territory.

 

 

 

The perpetrator of a cyber crime may physically be in Country A, while his victim is in Country B, or his victims are in Countries B, C, and D and so on. The perpetrator may further complicate matters by routing his attack on the victim in Country B through computers in Countries F and G. The result of these and other cyber crime scenarios is that the cyber crime is not committed “in” the territory of a single sovereign state; instead, “pieces” of the cyber crime occur in territory claimed by several different sovereigns.

 

Cyber crime is a primary example of cross-border crime, and so, it raises the issue of jurisdiction. This is a tricky issue. Acts on the Internet that are legal in the state where they are initiated may be illegal in other states, even though the act is not particularly targeted at that state. Jurisdiction conflicts abound, both negative (no state claims jurisdiction) and positive (several states claim jurisdiction at the same time). Above all, it is unclear just what constitutes jurisdiction: is it the place of the act, the country of residence of the perpetrator, the location of the effect, or the nationality of the owner of the computer that is under attack? Or all of these at once? It turns out that countries think quite differently on this issue. The cyber crime statutes of numerous countries show varying and diverging jurisdiction clauses. Since internet allows transactions between persons of various jurisdictions, an international agreement (to be crystallized into a convention, later) is required for any regulation. However, in arriving at a uniform law, varying standards adopted by jurisdictions across the world and the point of balance adopted by them have to be kept in mind.

 

 

Jurisdiction is a highly debatable issue as to the maintainability of any suit that has been filed. Today with the growing arms of cyberspace the territorial boundaries seems to vanish thus the concept of territorial jurisdiction as envisaged under S.16 of C.P.C. and S.2.of the I.P.C. will have to give way to alternative method of dispute resolution.

 

In addressing the issues of what problems were posed by cyber-crime, Mr. Corell noted that the scope of international cooperation is limited by international agreements and by the national law of the State from which information has been requested. There are also differing priorities between developed and developing countries. These differences complicate international cooperation and expand the gap between the two groups.

 

There is no authoritative, comprehensive elaboration of the principle of universal jurisdiction concerning cyber-crime, he said. There are different views concerning the offences that constitute crimes under international law that are subject to universal jurisdiction. There are also different opinions with respect to the significance of the obligation to prosecute or extradite, as contained in various treaties, as evidence of universal jurisdiction. Whether States are not only permitted, but also required, to exercise jurisdiction with respect to crimes under international law, is also subject to different opinions.

 

 

 

CONCLUSION

 

The magnetism of science has always captivated members of the legal profession. People look up to science to rescue them from the experience of uncertainty and the discomfort of difficult legal decisions, and are constantly disappointed.

The notion of what constitutes science and what it would take to make law more scientific varies across time. What does not vary is our constant return to the well. We are constantly seduced into believing that some new science will provide an answer to laws dilemmas, and we are constantly disappointed.

 

In the words of Senior Advocate K.T.S. Tulsi — “There is no doubt that [science] is going to overtake the law enforcement agencies by storm. No one will be able to avoid it. It is like standing on the shore and asking the waves of the sea not to come. What is required is a proper debate about the real value of [science] and whether it fits into the overall picture and what use could be made of it by the investigators.”

 

REFERENCES

 

 

v BOOKS AND ARTICLES

 

A Convergence of Science and Law. A Summary Report of the First Meeting of the Science, Technology and Law Panel: National Research Council. Science and law blog: August 8, 2008. Fingerprints” Chemical “Footprints”? Science and law blog: August 11, 2008. “Hot Tubbing”: Old wine in New Bottles for Expert Witnesses. The New York Times: August 7, 2008, Kenneth Chang. Law, science and technology collaboration: Justice M. Jugannadha Rao-Chairman Law Commission of India. Kolkata Newsline, Thursday, February 01, 2007. A profile of forensic science in juristic journey: Justice Jitendra N. Bhatt. Do space laws need to be modified? S Bhatt Space weddings. I do. I really do. Carol Pinchefsky, 7 July 2008. Tara Blake Garfinkel, Jurisdiction Over Communication Torts: Can You Be Pulled into Another Country’s Court System for Making a Defamatory Statement Over the Internet? A Comparison of English and US Law, 9 Transnat’l Law 489, 492 Bryan P. Werley, Aussie Rules: Universal Jurisdiction over Internet Defamation, 18 Temp. Int’l & Comp. L.J. 199, 219 Para 1.16 of the British Law Commission Report on Defamation and the Internet, cited from (visited on 7th August, 2004 1996 US Dist LEXIS 8435 (SDNY 19 June, 1996), cited from R. Matthan: The Law Relating to Computers & the Internet, p. 2 (New Delhi: Butterworths, 2000). In this case, the defendant was an Italian, who had, using an Italian server, set up a website, under the name “Playmen”. The court had earlier issued a permanent injunction against the defendant from using that name in any magazine sold, published or distributed in USA. The court accepted that it could not order the website to be shut down as that would amount to asserting that every court in the world had jurisdiction over all information providers on the internet In info age, time for cyber savvy cops. Uma Karve. October 5, 2002. Learning the law, Indian Express. Karina Sudarsan Beware! Cyber Criminals are on the prowl, Navhind Times,March 17, 2002; by Shaikh Jamaluddin. 10 Myths of Electronic Security, Banking Frontiers September, 2002; Rohas Nagpal, Asian School of Cyber Laws. I”ll be watching you! Times of India, December 19, 2002; Zahra Khan, Times News Network. Approaches to Cybercrime Jurisdiction; Susan W. Brenner, University of Dayton – School of Law, Bert-Jaap Koops Tilburg University – Faculty of Law (TILT). Challenge of borderless ”Cyber Crime” to International Efforts to Combat Transnational Organized Crime Discussed at Symposium, 14 December, 2000. Towards Speedy, Inexpensive, Transparent and Accountable Justice; Justice GC Bharuka, 4th November, 2007.

source : www.thinklegal.co.in (ThinkLegal Resources Pvt Ltd)

           

 

Can I see the Title Deeds? What will be my undivided share in the property? Are you building within the permissible FSI? Will you give me an Allotment Letter? Will you give me a comprehensive Agreement of Construction? Can I have a copy of PDA’s approved plan and planning permit, before commencement of construction? What are your commitments after you complete and deliver the flat?

 

 

1. Can I see the Title Deeds?

1. In order to own a flat that is yet to be constructed. You will have to first buy an undivided share in the property on which the flat is going to be built. Before buying this, you must make sure that the title deeds of the property are in order. The title deeds are the set of documents that would unequivocally establish the seller’s ownership of the property and his right to sell it.

2. Therefore get a written opinion on the title from the Builder’s advocate along with photocopies of the title deeds. Certified by an advocate. If this is not available, get an opinion from your own advocate. You must also see the Agreement of Sale between the Owner and the Builder.

3. The manner by which the Owner acquired the property decides the key documents that must be seen:
A. Property was purchased by the Owner:
See the Registered Deed by which he purchased it.
B. Property came to them by a will (i.e. Bequest):
This is known as Testamentary Succession. See the Probated Will. If no Executor / Executrix has been appointed, see the letters of Administration granted by District / High Court according to law.
C. Property devolved through succession:
If the earlier Owner died without leaving a Will, the legal heirs and successors obtain a Deed of Succession issued by the Sub-Registrar or an Inventry of the assets from the District Court, which must be seen (obtain a noterised copy).
D. Property developed through a Gift / Partition / Settlement / Exchange:
The Deed relating to such transfer of Title – Gift Deed / Settlement Deed / Deed of Relenquishment / Exchange Deed – must be seen.

4. The other ancillary / supporting documents that must be seen are :
A. Form I&IV in the name of the Owners, issued under the Seal of the Mamlatdar.
B. Nil-Encumbrance Certificate (EC) for the preceding 31 years, preferably showing no mortgage or other encumbrance that are still existing on the date of purchase. Exercise caution if an uncleared mortgage or other lien on the property is shown in the Encumbrance Certificate.
C. The property being sold must be free of restrictions for sale under the Urban Land Ceiling Act (U.L.C. Act). If a Clearance Certificate for the Property issued by the U.L.C. Authorities is not available, then it has to be ensured that with reference to the land held by the Owner(s), and the nature of their family membership, the built-up area of the construction thereon and the appurtenant / contiguous land around the built-up area fall within the ceiling of Ownership and therefore can be freely said.

5. If the property is not being transferred by the Owner(s) directly but through an Agent, acting as Power of Attorney Agent (POA) of such owner(s), ask for the original or attested copy and scrutinise it. Such a Power can be given either through a Notarised Document or Registered Document. However, a notarised power may not be accepted for property transfer by all governmental/financial agencies.

6. Besides the above, it is advisable to check the following:
A. Property Tax Demand Notices and Receipts for payments to the Corporation.
B. Water and Sewerage Tax Demand Notices and Receipts for Payments to the Panchayat or Municipal Authority.
C. Electricity Bill and Receipts for Security Deposits and Additional Deposits. The latest electricity bill is the best source of proof for payment of dues by the Owners to the Panchayat or Municipality.

 

2. What will be my undivided share in the property?

Your Undivided Share of land must be equal to:
The built-up area of your flat as in the approved plan/ Total built-up area of the project as in the approved plan This is usually expressed as a percentage of the total land. Therefore, the percentage undivided shares of land of all the flat owners in a complex must be equal to 100. This ensures that the title to the entire land as well as the entire building rests with the group of flat-owners of the complex.
The Sale Deed transferring the Undivided Share in your favour must be duly registered before the commencement of construction of the flat.

 

3. Are you building within the permissible FSI?

1. The Floor Space Index (FSI) is an important parameter you should know about.

F S I = Total buildt-up area of your complex plan/Total area of the plot on which it is to be built.

2. The permissible FSI for all residential complexes other than multistoreyed buildings in all the end-use zones listed below is 1.5: Primary Residential, Mixed Residential, Institutional and Commercial zones

3. The total construction as declared in the plans of- fered by the promoter should not exceed the FSI permissible.

4. This FSI is fixed by the Planing and Development Authority (PDA) which is the regulatory body governing architectural, structural and environmental parameters pertaining to development within the State of Goa.

5. The rules and regulations governing the above parameters are spelt out in the Development Control Rules (DCR), a copy of which can be purchased from the PDA.

If the permissible FSI is exceeded, you as a flat-owner run the risk of demolition of the construction.

 

4. Will you give me an Allotment Letter?

Insist on an Allotment Letter at the time of booking, which must clearly indicate:
>> All-inclusive firm and fixed price (clearly indicating the various components such as land cost, registration and stamp duty for the transfer of undivided share of the property, and construction cost) and the schedule of payments.
>> Plan of the flat (as per sketch scheme), built-up-area and the features offered.
>> Committed commencement and delivery period and commitment for liquidated damages for any delay.
>> Post-delivery product warranty by the builder.
If your builder does not provide you with an Allotment Letter, you face the uncertainty of not knowing
>> The exact amount you will end up paying for your flat.
>> When you will get possession of your flat.
>> Whether you will get all the features promised.

 

5. Will you give me a comprehensive Agreement of Construction?

1. The Agreement of Construction substantiates the commitments relating to land cost (your share), stamp duty and registration fee, construction cost, schedule of payment, list of features, time of delivery, post- delivery warranty etc.
2. If defines the responsibilities and obligations of both the Contractor (or Builder) and the Contractee (or Buyer) and is normally put down on a Rs.10.00 stamp paper and signed by the Builder and the Buyer in the presence of witnesses.
3. The Agreement of Construction is the only source of your title to the flat, read in conjunction with the Property Tax Assessment and Demand Bill in your name. Since it is the document of ownership, funding agencies would demand it, when you apply to them for a loan.

6. Can I have a copy of PDA’s approved plan and planning permit, before commencement of construction?

1. The plan given to you at the time of booking may not be fully conforming to the Development Control Rules and the plan actually approved by the PDA may consequently be different. Therefore insist that you are given a copy of the approved plan and the planning permit before the construction of the complex commences. Check whether the area of your flat in the approved plan is as per the allotment letter.

2. If you have a copy of the approved plan and the planning permit, you can monitor the actual construction and ensure that it is as per the approved plan. If the building is not constructed as per the approved plan, you as a flat-owner, could face the threat of its demolition.

 

7. What are your commitments after you complete and deliver the flat?

1. Ensure that the builder gives you the Completion Certificate issued by the PDA, which confirms that the construction is as per the approved plan.

2. Ensure that the builder gives the Association of Flat Owners (of which you would be a member) with a set of detailed drawings covering structural, plumbing, electrical wiring, drainage and water supply details.

3. Ensure that the builder commits to rectify defects in your flat and the complex in materials or workmanship.

4. The Completion Certificate confirms the adherence of the completed complex including your flat to PDA’s approved plan, and eliminates all chances of demolition of the construction.

5. In the obsence of the drawings, maintenance of your flat (and the building) will be difficult.

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Abatement notice:
A notice served on the owner(s) or occupier(s) of a property from which a private nuisance arises, warning them of the intention to enter on the land in order to abate the nuisance.
Absolute title:
1. The right of ownership of a mortgage deed, which gives the right, in certain specified circumstances, to demand repayment in full, of the outstanding debt than the due date.
2. A clause in a deed or contract, which provides for the early termination of an exciting interest in land, in certain specified circumstances, thereby advancing the future interest.
Agreement for lease/sale:
A contract to enter into a lease (or sale), which in order to be enforceable either must be evidenced in writing and signed by the person against whom action is taken for the breach of the alleged contract and there must be a sufficient act of part performance.
Alternative user value:
The value of land and buildings, which reflects a prospective use, which is different from that of the current use.
Amortisation:
1. (UK) The concept of writing off the capital cost of a wasting physical asset by means of a sinking fund.
2. (USA) Payment of a debt in equal installments of principal interest, as opposed to interest -only payments. Anchor tenant: One or more department or variety chainstores, or supermarkets, introduced into a shopping center in key positions to attract the shopping public into the center for the purpose of encouraging other retailers to lease shops n route. The larger the developments the more anchors required.
Annuity:
A sum of money paid each year during the life of the recipient. An annuity is usually paid as a legal obligation under a contract or undertaking, as through a pension scheme, and may be paid in installments more frequently than once every twelve months.
Asset valuation in the property market:
This expression is applied to the valuation if land and buildings or plant and machinery. The term is often used to describe an expert opinion of the worth of a property, which may be incorporated into company accounts, where the ownership of the asset is not necessarily to be transferred but the valuation is required for the company takeovers, share flotation or mortgages.
Assignment:
The transfer of a property interest, especially a lease, from one party to another.
Atrium:
An entrance hall of a building, often rising through a number of storeys and containing lifts, reception areas and plants. Originally the hall or chief apartment of a Roman house.

B

Balloon payment:
A repayment of a loan bond, usually but not necessarily the final repayment, which is larger in amount than other installments.
Bare shell :
This Depicts the condition of any property after completion of construction activity and installations of basic building services. A bare shell includes basic flooring – tiled, mosaic, cement or granite and plastered walls. Apart from this, pantry and toilet facilities may also be operational in such condition.
Basic rent:
A monthly rental net of maintenance and interest costs charged or quoted by landlords for any property. The base rent comprises of only the payment made for Usage of the subject property under a lease agreement. Imputed costs such as holding costs fit out costs and building service charges are not usually included in the base rent.
Bayana:
An Indian term used to denote the token money given to the landlord to informally freeze negotiations on a particular property, after the initial terms and conditions have been formalised.
Breach of contract:
An act, or omission, contrary to enforce specific performance to rescind the contract and / or to claim damages, the remedy available depending upon the nature of the breach.
Broker/dealer:
A person or company who acts as a medium of bringing owners and proposed buyers together with a view to complete a real estate transaction.
Brokerage:
1. Commission paid to a broker.
2. The activity of a broker in bringing together two parties in a transaction.
Building byelaws:
Local authority control of building standards promulgated to regulate and control the usage of land, property and areas in cities and towns.
Building contract:
A contract between an owner or occupier of land and a building contractor, setting forth the terms under which construction is to be carried out, basis of remuneration, time scale, and penalties, if any, for failure to comply with terms of the contract.
Business center:
Commercial premises usable by the occupiers for a short period on a membership basis of the center. Usually, a business center charges for the full service accommodation, which is generally substantially higher than the rental of a standard office space, and higher than the rental of a standard office space, and usually includes cost of HVAC, housekeeping, electricity, and security systems.
Business park:
A landscaped area containing high tech, other amenities for business purposes, as a distinct from high-tech park or a science park. Building density is lower than would be usual in a traditional industrial estate. Business parks are preferentially located where motorway, rail and airport communications are within a short distance.
Buy-out rate:
In a funding agreement between a developer and a prospective purchaser, the pre-determined investment yield which will be used to capitalize the annual income receivable at the time of sale to determine the buy out price.

C

Capitalisation:
1. At a given date the conversion into the equivalent capital worth of a series of net receipts, actual or estimated, over a period.
2. A method of calculating a final purchase price for a development using an agreed formula to convert actual, or assumed, income from initial lettings into a capitalism. Such capitalised sums may be offset against a purchasing fund’s interim finance payments, any excess being paid to the developer.
3. In relation to a company’s reserves, the conversion into capital of money, which is then distributed as a capitalisation issue.
Catchment area:
1. The area of land from which finds its way into a particular watercourse, lake or reservoir.
2. By analogy, the area which contains those people who can be expected to obtain goods, services, employment or other benefits from a particularly property. More especially related to retail premises, where the success of forecasting depends on the accuracy of estimating the number of purchasers (catchment population) likely to be attracted from the different parts of the area and the average expenditure, which might be expected, from them.
Central business district:
The functional center around which the rest of a city is comparison shopping, office accommodation, leisure facilities, buildings for recreational use, public museums, art galleries and governmental functions. Generally the area of highest land values within a city.
Clearance area:
An area, which is to be cleared of all buildings. Generally promulgated by way of a government declaration, which is normally followed by the acquisition of the land and the clearance of the area. Completion certificate/statement:
1. (UK) statement prepared by solicitors, usually those acting for a purchaser and a vendor respectively, following the conveyance of an interest in property, giving a schedule of sums received leading to a balance being the final amount due to the vendor. In some case the statement is prepared at a later date and may show a figure recoverable by the purchaser from the vendor.
2. A certificate issued by the local development authority certifying that all necessary works have been completed and that the property is fit for occupation.
Condominium (USA):
A building or a structure of two or more units, the interior space of the individually owned and the balance of the property (both land and building) being owned in common by the owners of the individual units.
Conveyance:
A document transferring title to land from one person to another.
Current yield:
The remunerative rate of interest, which is, or would be, an appropriate at the date of valuation, assuming the property to be let at its full rental value. It will be the same as the reversion yield where the reversion is to full rental value, and the same as the term yield where the rent receivable under the lease is full rental value.

D

Developer:
An entrepreneur who has an interest in a property, initiates its development and ensures, that this is carried out (for occupation, investment or dealing) and from the outset accepts the responsibility for providing or procures the requisite funds needed to finance the whole project.
Development control:
The powers of a local planning authority to control the development and use of land, which includes inter alia,
a) the refusal or grant (with or without conditions ) of planning permission;
b) the issue of enforcement notices;
c) the making of revocation, modification or discontinuance orders;
d) the grant or refusal of listed building consents;
e) the designations of conversion areas;
Development yield:
In a valuation to ascertain a ground rent, the rate at which costs are decapitalised to find the annual deduction from the occupation rents; it comprises:
a) an investment yield
b) an annual allowance for developers risk and profit and, in some instances
c) an annual sinking fund element
Discounted cash flow analysis:
Techniques used in investment and development appraisal whereby future inflows and outflows of cash associated with a particular project are expressed in present -day terms by discounting. The most widely used forms of DCF are the internal rate of return (IRR) and net present value (NPV). The techniques may be used for such purposes as the valuation of land and investment, the ranking of projects or their components.

E

Easement (UK):
A right appurtenant to a parcel of land entitling a dominant owner to use the land of the servient owner in a particular manner, or constraining the legal rights otherwise enjoyed by the servient owner, e.g. A right of way, right to light, right to support. Strictly speaking, easements cannot exist “in gross”, i.e. personal and unattached to the ownership of land, but rights similar to easements can be created by statute, usually for the benefit of public utility undertakings, and these are commonly referred to as “statutory easements”.
Effective rent:
The gross rent payable per month by the occupiers which includes the base rent, maintenance charges, imputed costs of loss of interest on security deposit and rental advance. The effective rent indicates the total cash outflow of an occupier every month on account of leasing any property.
Equity linked mortgage:
A mortgage whereby the interest on the principal in part or in whole is calculated, usually yearly, by reference on the security, e.g. It may reflect annual increase or possible decreases, in the annual return on, or the value of, the property in which the mortgage is secured.
Escalation clause specified in lease agreements wherein renewals of lease period are built in:
It involves an increment in the base rent at every renewal of a lease agreement in the base rent at every renewal of a lease agreement and is generally a percentage rate that is either pre agreed or negotiated before the renewal of the lease agreement.

F

Facilities management:
The coordination of many specialist disciplines to create the optimum working environment for staff.
Fail rent:
The rent determined by a rent officer (or, on appeal, by a rent assessment committee) under a regulated tenancy and registered.
FERA:
An act to regulate certain payments dealing in foreign exchange, securities, the import & export of currency and acquisition of immovable property by foreigners. Under Section 31 (1) of the Foreign Exchange Regulation Act ( FERA) of 1973, It is mandatory for foreign corporations, which are not incorporated in India to obtain permission from the Reserve Bank Of India (RBI) to acquire, hold, transfer or dispose off in any manner (expect by way of lease for a period not exceeding five years) any immovable property in India.
Fire certificate:
A certificate covering matters of safety required under the legislation for hotels, boarding houses, factories, offices shops and railway premises, excluding those buildings containing less than a minimum number of employees. In order to obtain a fire certificate, one must apply to a fire certificate, one must apply to a fire officer, who then inspects the building and issues a list of requirements (e.g. Fire doors). Once the fire officer is satisfied that those requirements have been met he will issue the fire certificate. It enables fire officers, in the event of an emergency, to have prior knowledge inter alia of the permitted number of people on each floor; it also informs officials if any authorised inflammables /explosives materials on the premises.
Fitouts:
Relate to the interior permanent furnishings required in a property including HVAC ducting, fire protection system implementation, establishment of workstations and telephone/computer cabling among other, in order to make the property fit for usage.
Flatted factory:
An industrial building of more than one storey, usually with two or more goods lifts, and constructed or converted for multiple occupation. The building is subdivided into small, separately occupied units, which are used for manufacturing, assembly and associated storage.
Force majeure:
A force, which cannot be resisted, in other words, something beyond the control of the parties involved. It includes acts of God and acts of man, e.g. Riots, strikes, arson. In many contracts and insurance policies, specific provision is made for damage or injury arising from force majeure. For example, the financial liability of a building contractor for failure to complete by a specific date may be relieved to the extent it was caused be force majeure. This is a common clause in most property contracts.
Foreclosure:
1. (UK) The mortgagees restricted power to extinguish the mortgagor’s right of redemption by transferring the mortgagor’s interest in the property to himself, if the mortgagors defaults in paying his dues or in complying with any other terms of the mortgage deeds.
2. (USA) The legal process by which a mortgagee can sell the mortgagors interest in the property to satisfy debt: also called “foreclosure sale”. Also applied to the extinguishment of a mortgagors right of redemption. Freehold:
In general parlance this is used as shorthand for the tenure of an estate in fee simple absolute in possession. Strictly speaking, however, freehold includes fee simple, entailed interests and tenancies for life. Frontage (line): The full length of a plot of land or a building measured alongside the road on to which the plot or building fronts. In the case of contiguous buildings individual frontages are usually measured to the middle of any party wall.

G

Greased:
Lease back The disposal by a freehold or leasehold owner of his interest on a property or leasehold interest where the rent payable is geared to a fixed percentage of some variables, often rack-rental value.
Gold cause (UK):
A clause in a lease, which provides for the rent to be reviewed by reference to the price of gold.
Green field site:
An area of land, usually in the edge of a town or city or away from substantial urban areas, hitherto undeveloped but for which development is now proposed.
Gross External Area (GEA):
The aggregate superficial area of a building taking each floor into account. As described in the RICS/ISVA Code of Measuring Practice (UK), this includes: external walls and projections, internal walls and partitions; columns; piers, chimney-breasts, stairwells, and lift wells; tank and plant rooms, fuel stores whether or not above main roof level and open-sided covered areas and enclosed car-parking areas, terraces etc.

H

Hi-tech building (high technology building):
Primarily a modern industrial building which is particularly suited to the flexible uses and space needs of business organisations engaged in modern technologies. Such activities usually require more office or laboratory space than a traditional factory and also more sophisticated and adaptable installations for services and communications.
High point loading:
A concentration of abnormally heavy floor loading at one point or more particular places in a building or other structure where extra support may be required.
HVAC:
Refers to the heating, ventilation, and air conditioning system installed in a building to regulate temperature. This includes air conditioning plants, chillers and ducting systems, which ensure the uniform transfer of the cold or hot air, as the case may be throughout the building.

I

Indian Stamp Act, 1899:
A legal statute, which provides for the payment of stamp duty in case of all real estate transactions to duty to the local government. The value of the stamp duty depends on the rental payable and the lease term or the sale value as the case may be. This duty is paid by purchasing non-judicial Indian Stamp Paper, on which the lease/sale agreements are documented.
Improvements:
Generally, physical changes which enhance the capital value of land or buildings. These may include additional buildings, extensions to existing buildings, installation of new services, e.g. Central heating and air conditioning and infrastructure works. On the other hand, mere replacement by a modern equivalent if something worn out would normally be regarded as a repair rather than an improvement. The distinction has legal and taxation consequences.
Indenture:
A deed between two or more parties, each party having his own copy. Originally copies were all included in a single document from which each was torn or cut along a wavy (intended) line. Institutional investors: These are generally taken to include banks, pension funds, insurance companies, unit trusts and investment trusts, which are together commonly referred to in the investment field as the “institutions”. Investment yield: The annual percentage return which is considered to be for a specific valuation in an investment being expressed as the ratio of annual net income (actual or estimated) to the capital value. It is therefore a measure of an investor’s opinion about the prospects and risks attached to that investment. The better the prospects and lower the risks, the lower the expected yield and thus the greater the capital value. The required yield from an investment is estimated in the light of such factors as:
a) the security in real terms of the capital invested;
b) the security in real terms and regularity of income;
c) the ability to adjust the income to reflect market conditions;
d) the complexity and cost of management;
e) the ease and likely cost of realizing the capital;
f) the tax position
Internal rate of return (IRR):
1. The rate of interest (expressed as a percentage) at which all-future cash flows (positive and negative) must be discounted in order that the net present value of those cash flows should be equal to zero. It is found by trial and error by applying present values at different rates of interest in turn to the net cash flow. It is something called the discounted cash flow rate of return.
2. An alternative explanation might be: the highest rate of interest (expressed as a percentage) at which funded f cash flow generated is to be sufficient to repay the original outlay at the end of the project life.

J

Joint agent:
One or two or more agents jointly instructed by a principal to act on his behalf. In the case of estate agents this is normally on the basis that if any one of the agents effect the sale, letting or other joint agent(s) will share the remuneration in agreed proportions. None of these agents would be entitled to a commission if the transaction is concluded as a result of someone else’s introduction.
Joint sole agent:
One of two or more agents jointly instructed as the only agents entitled to represent the principal. It is customary for the joint agents to share any commission earned on an agreed basis, irrespective of which agent effects the sale or letting.

K

Kiosk:
A small enclosed retailed outlet, normally without toilet facilities and in the retail area, frequently located in a public concourse or other place where it may remain open place where it may remain open only during peak times and be closed securely when there are no customers. Kiosks are now sometimes included in managed shopping schemes.

L

Land assembly:
The process of forming a single site from a number of land, usually for eventual development or redevelopment. This will include acquisition of individual interest the eventual development or redevelopment. This will include acquisition of the individual interests, removal or discharge of any restrictive covenants or other encumbrances and obtaining physical possession, when required, from occupiers.
Landlord:
The owner of an interest in land who, in consideration of a rent or other payment (e.g. A premium), grants the right to exclusive possession of the whole or part of their land to another person for a specific or determinable period by way of a lease or tenancy.
Lease agreement:
An agreement, usually written, between the lessor and the lessee, which allows for the conveyance of property to the tenant under a contract, and confers usage and control rights to the tenant for the duration of lease. Apart from financial terms and conditions, several clauses describing the other binding terms and conditions of the agreement are also documented.
License:
The lawful grant of a right to do something, which would otherwise be illegal or wrongful. It may be gratuitous, contractual or coupled with an interest in land. The grantor of license is the licensor and the grantee is the licensee. A gratuitous (“Mere” or “bare”) license can always be revoked (i.e.. Cancelled), but revocability of a contractual license depends on the terms of the contract. A license coupled with an interest in land may be irrevocable and unlike the other two categories, may be binding on successors in title of the licensor. One example of license is permission, usually required in writing, given specifically by an owner to a tenant, enabling something to be done which otherwise would be in breach of a term of the lease. A license does not itself transfer any interest in the land but may authorise the licensee to enter the licensor’s land for some specific purposes of the license; the licensor may enter the land and use it in any way not inconsistent with the rights of the licensee. However, a landlord may authorise by license some act or omission by a tenant, which would otherwise be a breach of the terms of the lease.
Load bearing:
The capacity of an element in a building structure to support a weight in addition to its own, whether vertically or laterally. Thus a load-bearing wall is one, which supports part of the structure in addition to its own weight.

M

Maintenance in property parlance:
The keeping of a building, structure or other physical feature in a specified e.g. Wind and weather tight, condition. The approved cost of maintenance may be deductible for income taxation.
Mattha:
Frontage of a building with the main road.
Mortgage:
The conveyance of a legal or equitable interest in freehold or leasehold property as security for a loan and with provision for redemption on repayment of the loan. The lender (mortgagee) has powers of recovery in the event of default by the borrower (mortgagor). A mortgage is a form of land charge and can be either legal or equitable.

N

Negotiation:
Discussion, written or otherwise, between two or more parties no different sides, the aim being to reach a common agreement.
Non-confirming use:
The use of a property, which does not conform to the allocation of the area for planning purposes. Such a property may have been built in conformity with the planning requirement at the time and a policy change ensued; more usually, the property was constructed before planning control was introduced.
Net present value method (NPV):
A method used in discounted cash flow analysis to find the sum of money representing the difference between the present value of all inflows and outflows of cash associated with the project by discounting each at a target yield.

O

Open market value:
1. The best price which might reasonably be expected to be obtained at arms’ length for an interest in a property at the date of valuation, subject to any statutory assumptions which may be required.
2. For the purpose of asset valuations this is defined by the Royal Institute of Chartered Surveyors (UK) as the best price which might reasonably be expected to be obtained for an interest in a property at the date of valuation assuming:
-a willing seller
-a reasonable period in which to negotiate the sale
-that values will remain static during that period
-that the property will be freely exposed to the market; and
-that no account will be taken of any higher price that might be paid by a person with a special interest.
-Outgoings Costs incurred by the owner of an interest in property, usually calculated on a yearly basis. e.g. management, repairs, rates, insurance and rent payable to the holder of a superior interest, as appropriate to his contractual or other liabilities. It is prudent to make annual provision for future items involving expenditure at intervals of more than one year.

 

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Today we are living in the age of information, and communication where the information societies are rapidly transforming themselves from information society to knowledge society. Information society or rather its Japanese term “Johoka Shokai”, was perceived by the Japanese writer, Yoneji Masuda, “as a society, which would eventually move to a point at which the production of information values became the formative force for the development of the society.”

               In India the significance of communication in equipping people with new information and skills; and mobilizing them for their willful participation in various development programmes and activities has been well recognized and emphasized in the country’s blueprint policy i.e the five year plans. Communication is fun, Communication is power, Communication is money and Communication is intelligence today. So a country’s growth, cultural moorings, its inner strength and competitive edge all depend greatly on communication power. In the recent years the country is on the threshold of a new communication revolution of which satellite, TV, Video are major manifestations. In this information age from high frequency wireless communication to digital compression technology, to microwave communication to silicon chips, satellite communication, optic fibers, telematics, computer graphics, Internet, world wide web, Internet protocol TV(IPTV),interactive TV(ITV),digital audio broadcasting(DAB),multimedia and so on, there is no stopping and no looking back. Communication wise the whole world is technically knit together and with the constraints of time and distance disappearing, it has been possible for humanity at large to be integrated at intellectual, economic, cultural and emotional levels, by sharing a global commonwealth of human resources, transforming the whole world virtually into a ‘global village’.

        

NEW COMMUNICATION TECHNOLOGIES-Different  Perspectives And Significance

 

            The concept of global village by Marshall McLuhan is becoming increasingly interconnected by communication technologies that is gradually defining the way we look at the world. The Gutenberg era is over. A new digital communications technology has emerged. An electronic superhighway is beginning to girdle the globe as voice, video and data converge bringing in the wake a new basket of digital multimedia and interactive communications technologies. New technologies such as Global Satellite of Mobile communications(GSM),General Packet Radio service(GPRS), Teletext, Videotex, Virtual Private Network(VPN), Wi-Fi, Coded Division Multiple Access(CDMA) etc are gaining wide acceptance due to several advantages like–

Interactivity Demassification (As opposed to the old economy (which focused more on mass production and mass broadcasting to a mass audience), the new economy breaks down (demassifies) production. The focus, in terms of production, is now shifted to customization, segmentation, and individualization. This trend leads to narrowcasting). Asynchronity (the exchange of data, figures, and conversation takes place on a real time basis, without the presence of all the participants). Immediacy User friendly Narrowcasting(A narrowcast is the transmission of data to a specific list of recipients. Cable television is an example of broadcast model in which the signals are transmitted everywhere and anyone with an antenna can receive them. The internet uses both a broadcast and a narrowcast model. To transmit to selected individuals. Cable TV and satellite radio are examples of narrowcast services because they reach only their subscriber base. Mailing lists are another example.) Infotainment(A television program with a mixture of news and entertainment features, such as interviews, commentaries, and reviews). Ease of updating Instantaneous message dissemination Time saving and Cost Effective

                              

Marriage of mediums or rather, Convergence is today a reality and India is fast waking up to the digital era, re-shaping the way the individuals and organisations produce, process, market, collaborate and share information. The launch of paid Internet radio services on Yahoo! And Rediff.com, Edge, Third Generation(3G) and Bluetooth, Internet on TV, are some of the new technologies that have been used for the benefit of mankind. At the same time ,there is an increasing demand from consumers for data delivery, telephony services, global roaming, e-mail, video and Internet access on one single device. These needs have resulted in global standards that are more open, making available the vast knowledge base and providing substantial increase in productivity, a better quality of life, enhancements in education and recreation and cross cultural understanding.

 

 COMMUNICATIONS SCENARIO: Then And Now

 

                        Coming to the access of these new technologies, no wonder it can be safely said that the Indian middle class have moved at a much faster pace than expected. If you still deny than consider the communications scenario.

Within a decade the average citizen owns a private telephone, television and personal computer. In addition to these ,telephone and Internet access is increasingly provided by phone booths and cyber cafes situated in public places. In 1947 it, when India gained independence, it had only 84000 telephone lines, to reach out to a population of 300 million. By 1999,India had an installed network of over 25 million telephone line, spread over 300 cities, 4869 towns and 310897 villages, making India’s telecommunication network the 9th largest in the world. Another most successful achievement was the introduction of mobile telephone services in 1995, along with pager services. By 1998,India had one million cell phone users in its four metropolitan cities, with 45% in Delhi followed by Mumbai 35%,Calcutta 12% and Chennai 8%.Another 500000 or so existed in towns and cities. Previously the use of cell phone was restricted only among the urban elites, corporate leaders and business professionals, but currently the omni presence of rural phone in rural setting is also very much conspicuous. These services satisfies the strong cultural need of the pan Indian to keep constantly in touch with the family members. For a vegetable seller in a remote village of Karnataka, uses his mobile phone ,to supply and take orders for his customers, who lives in far off villages. He has no pucca house, nor he has any pucca shop. What he has is a small make shift shop, a two wheeler moped and a Nokia 1100 mobile phone. Again Yashwant Singh a villager in Hoshiarpur of Punjab, owner of several trucks, has purchased cell phone for his truck drivers, to keep with them in constant touch. Many well to do farmers in India often own mobile phones keeping in touch with block and district level officials, checking market information, scheduling transportation, pick ups and so forth. Many mobile users access mobiles for listening to FM radio or MP3 DVD player,capturing images and videos and simultaneously transfer them via infrared or Bluetooth to other mobile users,use multimedia through 3G(Third Generation),send SMS and MMS playgames and various other purposes.

                    The traditional sectors like radio and television have also undergone functional displacement, owing to the changing times and needs. DTH (Direct to Home) technology which takes cross border satellite programmes direct to viewers homes without the intervention of cable operators, is the future of TV.DTH TV is digital and interactive and offers up to a hundred subscription channels. Also development of radio has taken giant strides in the past few years. Satellite radio was a major innovation ,followed by Podcasting , which is currently riding high on the success of Apple computers ipod. Technically speaking Ipod are basically digital basic (MP3)players with local storage and Internet connectivity-the latter is required for downloading audio and other files from web servers via RSS or XML protocol. Podcasters are like web loggers ,amateurs who create radio like programs of commentary, music and humour, save them in MP3 audio format and post them as websites which are ipod enabled. Then there is Digital Audio Broadcasting which consists in combining a series of services into a frequency band called a base group, enabling a multiplex bit stream to be created in which services of all shapes and sizes can be transmitted, thus providing perfect sound quality, free of interference, capable of serving a mobile audience.

                     In the case of personal computers, one important factor promoting the diffusion of personal computers, in India, in the late 1990s was the rise of various financing schemes. More and more middle class could purchase computers. Till 2000 a typical Pentium II desktop computer cost about 50000,which was quite a heavy burden upon the middle class. But the things changed with the alternative model of an assembled piece where the consumer brought the computer home, by choosing the specific configaration of a computer-like the speed and amount of ram, modem speed, speakers and monitors etc. and surprisingly all this within a very affordable range. Now the situation has changed to such an extent that even branded laptops are available for rs 30000.the enthusiasm for the computers was immediately visible through the internet. Cyber cafes were quick to catch the pulse of the market and in 1995 after Internet connectivity was made available to the individuals and the organisations, on a commercial basis, cyber cafes sprang up to add zeal..These cafes unleashed opportunities before an individual. It enabled an individual to log on to the net, surf it, play games, watch video, e-mail, chat,e-shop for Rs10/-15/per hour. Initially urban centric now it has spread its wings to rural areas too, by upgrading themselves into ICC(Internet Community Centres ), providing net surfing, net telephony, telephone, multimedia, video conferencing and photocopying services all in one.

                           Further the Internet gave rise to an era of e-business-both e-marketing and e-commerce. E-marketing requires the use of the Internet to market ones products and services, and e-commerce is commercial transactions between two parties on the Internet. In India though these concepts are relatively new, yet many individuals and organisations are entering into these business as they are time saving, cost effective and most important of all ensures 100% transparency and improves efficiency. The age old concept of middle class, underhand activities and unethical practices and unjustified harassments are gradually being overcome by these e-business. Some of these e-business companies who have establised themselves as a reputed brand name in the international arena are Metal Junction Services limited, e-bay, Amazon.com, Aditya Birla, IFB, Dell, etc. Today the Internet is accessed via cable TV, telephone, mobile phones, palm tops, and DTH apart from the conventional computers.

                       The Internet has ushered into a new era where it is concerned with the creation of wealth not only through production, processing and transportation of goods but also through information- networks using technological know how, management practices and remote processing, like customer  help ,medical transcription, data and research processing etc. Internet has given rise to several new occupations like website designing, e-commerce, Internet patrol, technical writer, content developer ,multimedia specialist, graphic designer, etc. Today tele working is gradually in rise in India, considering the presence of a solid telecommunications infrastructure,   favourable policies for free global trade, and the availability of low cost English talent. Several BPO’s and KPO’s are gaining wide popularity among the young university graduates. The corporates, the organisations,the educational instituitions are armed with the newest of these technologies like VPN(Virtual Private Network), Wi-Fi, V-SAT and broadband etc.

(DIAGRAM IN THE LAST PAGE)

        

  CASE STUDY 1

 

  Andhra Pradesh has already implemented four e-governance initiatives, adopting the old and new technologies like -

 

?      CARD-Computer Aided Administration of Registration Department

This enables a person regarding registration of land ,purchasing of land,ascertaining marketing value,transfer duty,etc. that which took earlier days and hours,now took only 15 mins.

?      APSCAN-Andhra Pradesh State Secretariat Administrative Network.

?      APSWAN-Andhra Pradesh State Wide Network

Both of these networks help in interaction among the villagers ,government officials, block development officers, chief minister, state secretariats, and the extension agents through video conferencing.

?      TWINS-Twin Cities Network Services

  This services is provided to the two cities of Hyderabad and Secunderabad. Here the citizens are provided all kinds of services like-electricity bill, phone bill, driving license, holding tax,insurance claim-all under one roof.

 

 CASE STUDY 2

 

               In a rural country like India, health remains a perennial problem. But Maharashtra has achieved astounding success in routing information to the villagers not only health conscious but also avail them of all those benefits of doctors and medicines, that their urban counterparts are habituated to enjoy. Its a dose of e-medicine for rural folks across the state. The doctors and experts together treats patients in the remote interiors of Maharashtra via satellite. Civic authorities ISRO (Indian Space Research Organization) and state officials have joined hands to make success their project. Here the patients in the rural areas get easy access to the modern facilities without having to travel long distance and spending big bucks. Thus the patients and the physicians in distant areas remain in constant touch via telecom network.

 

 

CASE STUDY 3

 

               Recent government records show that more than 25% ( 59 million school-aged children ) are still not enrolled in a school. Despite these poor figures in education , India has highly competent human resources as also a strong base in ICT, which if utilized to its maximum capacity in future , India will be among the topmost Asian countries. the Bridges to the Future Initiative –India ( BFI) seeks to improve the basic skills, literacy and entry in vocational skills of out-of-school youth and young adults in poor communities in several Indian states. to achieve these goals , the BFI employs innovative and cost-effective ICT tools and methodologies to improve the quality of teaching, learning in basic and vocational education and to assist community members in obtaining information resources that can improve their daily lives. At the official level , the BFI is situated under the patronage of MHRD and state education agencies ( initially Andhra Pradesh and Karnataka, where formal MOU’s are signed in May 2001.).

 

INDIA’S INFORMATISATION PROCESS

 

                  India’s informatisation process started  in 1990,which accompanied by the liberalisation , globalisation and privatisation policy, opened up borders for several MNC’s like McDonalds, Reebok,Pepsi,Coke etc. And also encouraged individuals to come forward to set up their own private organisation. The NEP (New Economic Policy) by Manmohan Singh reflected Indias enthusiasm to pursue an informatisation route. Prior to this Rajiv Gandhi government instituted favourable policies in electronics, software and telecommunications and pushed for the application of information technology in computerising the Indian railways reservation system,banks and land records. During his tenure, the Centre for Development of Telematics (C-DOT), The Centre for the Development of Advancement Computing(C-DAC)) and the NIC(National Informatics Centre) were established. Also he invited Texas instruments,GE, and Hewlett Packard triggering the rise of Bangalore Technopolis. Further the establisment of a National Task Force in 1998 in the Atal  Behari Vajpayee,regime under the co-chairmanship of AP’s  the then chief minister Chandra Babu Naidu was a watershed event in India’s road to informatisation. Its action plan made 108 recommendations on ways of utilising technologies for socio-economic development,it recommended the privatisation of internal services,the waiver of license fees for private Internet, service providers allowing ever cable operators and ISD/STD booth operators to use their infrastructure to enhance Internet access and zero duty on all it products by 2002 ad .It further recommended that software and IT be treated as a priority sector by banks for five years and that students, teachers and schools be offered computers at reduced prices. The task force wanted every ISD/STD  booth in the country to be turned into an  information kiosk providing access to the Internet and related  services like e-mail. More over in 1999,it introduced  an IT bill in parliament for facilitating e- commerce and e-business activities and created a 25 million venture capital fund to fuel computer start ups.

Not surprisingly some of the famous and richest IT Indians are Aziz Premzi (Wipro), N R Narayanmurthy (Infosys), Vinod Khosla (co-founder of Sun Microsystems) , Sabeer Bhatia(co-founder of hot mail) and Sam Pitroda,who had spearheaded the country’s communication revolution to a large extent.

 

 From the above situation one can summarise the India’s  informatisation effort-

 

?      India has vast potential to compete with world’s best -Japan,Germany,U.S,and U.K .The rich resources,huge talent and billion population should be tapped by the Indian government and thus facilitate innovation, enterpreneurship and creativity, rather than stiffling it or creating barriers like red tapism, bureaucratic hassles in approval and licenses. India’s enthusiasm and zeal should motivate young enterpreneurs to come forward and be an active member in the participatory process for socio-economic development in the country. The informatisation strategy through which an information society emerges centres on new communication technologies, on research universities where technical brainpower is trained and research and development is conducted,and on favourable government policies. With this India is poised to become an it world power.

 

?       The infrastucture,the economic policy and various other policy and strategies should be directed towards facilitating of India’s communication revolution .For eg the PCO’s, ICC’s, cyber cafes that have come up has not only provided employment to the young people but also has enabled the individuals to empower themselves and others with knowledge and information.

 

?      Indian personalities should also play a role model for the coming generation. The role of conventional media like radio and TV should be imitated and most importantly folk media should be merged with it to create a far wider acceptance. The DD should be more innovative and the government should ensure the cable TV /DTH participation towards a more socially responsible approach rather than only spinning off money.

 

With the development of technologies in the past few decades , the role of information and communication technologies(ICT), in improving economic efficiencies and enabling social development . Governments , the private sector  and civil society alike note that , “ vast no’s of people are excluded from the benefits of these technologies , in particular people who lack the infrastructure, skills , literacy and knowledge of the dominant internet language-English. They also recognize the opportunities for ICT to bring about change not only to address existing obstacles  to the social and economic development of these groups , but also to transform the very systems that create these inequalities in the first place . ICT must be deployed to build an information society  where everyone specially disadvantaged women, poor and rural people – can fully participate as citizens and reap the benefits of the information revolution.

According to Robert Schware , lead informatics specialist, the global ICT dep’t, of the World Bank, said-that India did take up over 200 pilot projects in the area of e-governance ; out of which only 100 are worth taking up full scale and can be replicated in other parts of the country. In his answers , to the global scenario in e-governance , he said- “that it is estimated that approximately 85% of e-governance projects in developing countries are total failures, approximately 50% are partial failures, only some 15% can be fully seen as success.” Though he commented that the primary factors for the failures include inability to deliver government services that provide benefit to citizens or business, lack of clarity on business perspective , projects are done in dept-al isolation rather than via a single co-ordination body and lack of political will and leadership and lack of skills in project management among some.

There are many countries that have achieved a reasonable amount of success in their e-government initiatives. For e.g. according to Cap Gemini Ernst & Young consultants , during 2003, Denmark had achieved 72% of government services on line with an 87% score on degree of sophistication. Other countries that have high rate for particular e-government services includes the U.K, Spain, Greece, Finland, Austria, Belgium, Bulgaria, Romania and Mexico. According to Sudhir Narang, Vice President, government and service provider business , Cisco systems , India & SAARC, “ almost every state has an it policy in place with the aim of evolving itself from being an it aware to an it enabled govt. state govt’s are fast recognizing the benefits of an it-enabled working environment”. Shivaji Chatterjee , senior director , sales and marketing, Hughes Escorts Communication, says “ IT has a vital role to play in all transaction that the govt undertakes. It helps the govt cuts red tapism, avoid corruption, and reach citizens directly.” Adds Rajiv Kaul, MD Microsoft, India –“ a strong technology infrastructure can help central and state govts deliver a comprehensive set of services to citizens.” The Karnataka’s govts ‘ Bhoomi’ project has led to the computerization of the countries old system of hand written rural land records. Through it , the revenue Dep’t. has done away with the corruption ridden system that involved bribing at every step. ITC’s E-Choupal unique web based initiative  offers farmers the information, products and services they need to enhance productivity , improve farm-gate price realization and cut transaction costs. Farmers can access the latest local and global inform on weather , scientific farming practices, as well as market prices at the village itself through this web portal all in Hindi.  The national e-governance plan ( 2003-2007), reflects the strategic intent of the central govt. in the right perspective. In the future State Wide Area Networks (SWAN), & Community Information Centers ( CIC), projects have to be rolled out , backed by a strong Public-Private Participation model( PPP), to achieve long term sustainability. Already the United Nations Development Programme (UNDP) and national institute of smart government ( NISG) has hosted India’s first S. Asia public sector ICT summit. The theme of the summit was ‘ new models for e-govt. in S. Asia and the world’ & was targeted at senior govt & policy makers from the countries in S-Asia including India. 

Again if the example of Mizoram , then it can be seen that ever since its inception in 1989, the continuous and tireless efforts of NIC Mizoram have resulted in spreading of ICT culture in the state. NIC along with the government of Mizoram has taken up many initiatives in facilitating and promoting e-governance in various sectors such as transport, land record, public health engineering, accounts and treasuries etc. –

For eg in transport communication ‘ Sarathi’ and ‘Vahan’ provide provide a complete solution for district transport office ( DTO) computerization including registration , licensing, permit and enforcement, tax and fee collection etc. a vehicle statistics information systems has been developed that helps in collection of various reports required annually by state transport authority of Mizoram.

 

26 CIC ( Community Information Centre) have been established since 2000 which are equipped with computers , VSAT, TV, web cameras, printers, ups etc . Two qualified operators manage these CIC’s , which provide the following services to the people in the far flung and remote areas of the state. E-mailing , web browsing and document priority; imparting IT training to the villagers, students, etc, providing G2C ( government to consumer) services such as support for BPL survey, village council elections, publications of tenders, notifications etc.

 

  PROBLEMS ENROUTE TO INFORMATISATION

 

Though from the above discussion it might seem that India has successfully become an information society and can be considered for future knowledge society, yet wait before coming to any conclusion .consider these:

 

?      Although India ranks 18th in the world in terms of usage of TV, radio, and Internet and with an entertainment industry having as size of Rs 14,400 crore in 2000, which is expected to rise to Rs 80,000 crore in 2009,yet amidst the expected fast rate of media development, rural India is marginally affected. Without effective communication no society can be apt enough to adopt dynamic models of development communication. Rural India faces a lot of problem. They are:-

1.     Wide communication gap

2.     Traditional values and attitudes

3.     Large and diverse population

4.     Low socio-economic status

5.     High cost of mass media

6.     Illiteracy

7.     Stereotypes and prejudices

8.     Low motivation

9.     Defective opinion leadership

10.  Persuasion difficult

11.  Feedback difficult

12.  Acute social deformity

                                 In a society where till recently the mother has scarcely spoken  ,the wife has spent her life without virtually seeing her husband, loveable children are produced without seeming parental interaction, it is very difficult to consider the meaning of communication and hence such a society demands mutual interaction, literacy dissemination, physical interaction, institutional transmission, political participation and cultural togetherness.

 

?      Indian media is largely urban centric. All the development that have taken place in the recent years gave rise to a rural urban divide. The important challenge is to reach the unreached and to include the excluded in its efforts to create an information society for all. . Starting by consulting at the grassroots level is essential. Top-down projects generally don’t work. These end up by providing information that people do really need or use at an incomprehensible level of technical detail and terminology.

 

 

?      The effective utilization of ICT is still unknown to many. The lack of policy support and political will is also due to lack of awareness of economic, political, and social benefits ICT, can bring. The level of awareness among professionals and decision makers in the region about the role of ICT in development is generally low.

 

?      Connectivity and access at an affordable cost in the region in particular, in rural and remote areas is still a problem. Computer literacy is low and the common model based on individual computer access in most cases is unfeasible due to high computer costs and lack of energy resources. Low cost devices such as handhelds can contribute to mitigating this problem, but they are not available or they do not have any utility value in many rural or marginalized societies. The same applies to other useful communication technologies such as low cost FM radio stations, but here the challenge is often the lack of political will to open the broadcasting sector for communities to own and manage community radio/TV. Even the radio/TV sets provided by the government remain unutilized due to reasons like intermittent electricity supply, want of repair, or inadequate infrastructure.

 

?       Internet has been largely popular with the people who are well conversant in English. Lack of appropriate local content and diversity in the Internet like local language, local problems and local needs has posed the greatest challenge. Development of local content in many language has been insufficient due to lack of language processing capacity. Tools to capture analogue content into digital form for many Indian languages are yet not available and this has slowed down the digitalization of existing analogue content in text mode and the development of pages enclosing indigenous knowledge. Incapacity to develop local content is equally a challenge for many electronic media and in particular for cultural and educational programmes suitable to local audiences.

 

?      Lack of software, lack of local trainers capable of imparting various skills related to ICT, content development and media operations a challenge which makes it difficult to extend the information society beyond affluent citizens in the region. Moreover most software’s are prepared by persons who have no knowledge about rural people, they are born and brought up and fed on the contents of Zee, Sony , Star Plus etc. difficulties abound . in one e.g. , the officer involved in computerizing land records in one Indian state recently said more than half of them are either legally contested , or in the names of the dead people , or illegible etc. yet the computerizing of land records is on the agenda of almost every Indian state.

 

?      The most of the traditional systems have not been exploited fully. Lack of innovativeness and creativity is a major factor. Generally all the programmes are made with the bureaucratic mentality, such that if the programmes are educative , they are boring as they cannot sustain the interest of the viewers for long and if they are entertaining they are not educative. Consequently they lack the personal touch and hence lack credibility. More so with the failure of public service broadcasting, the meaning has lost somewhere in the bureaucratic tangles. The information people initially say they need , may not always be what they end up using . in the M.S. Swaminathan Pondicherry project , for e.g. , male farmers originally said they needed information about agriculture. In fact , their largest single usage of village info. Kiosks was to get information about government programs.

 

 

?      India underwent a high degree of change in terms of commercialization and media information. Proper utilization and meaning of information has been distorted to give rise to western media imperialism and consequently the digital divide. The information gap is real and and runs between north-south, rich-poor, young-old, literate- illiterate, rural-urban, and men-women.

 

?      IT should not be simply identified with computers and internet. Some of the inventive uses of the IT involve radio, television and embedded chips, potentially useful satellite inventories etc. The classic e.g. is the use of automated butterfat assessment equipment in Gujarat , which has radically simplified the process of automating milk and paying diary farmers.

 

?      Lack of business process modification- in many well meaning projects & duplication of the manual process in the it environment was seen as major reasons for the end users / citizens not associating any value addition with the projects & looked upon e-governance as an unwelcome addition to the hurdles to be crossed before getting the work done. For e.g. in depts. Which maintain land records specially in rural areas the details regarding land ownership , cropping patterns etc were computerized , but no legal sanctity was given to the output generated by such systems in absence of a commensurate change in the status.

 

?      More talk than action- lot has been talked about. Seminars , conferences and workshops at national, international, local level has taken place a lot. Various five year plans have been planned. But few actions have taken place in reality so far.

 

?      Financial sustainability- the goal of financial sustainability is rarely achieved . granting that initial start up costs have to be borne by someone, very few projects even plan for long term sustainability and even fewer achieve it.

 

?      A successful commercial ict sector does not necessarily trickle down to ordinary Indians. Proposals by state governments to develop it for the masses often place primary emphasis on developing software technology parks , improving education at higher levels of information technology etc. though these goals are praiseworthy , yet there is very little evidence as to the increased growth rate of software industry in relation to improved living conditions, more schools and colleges, better healthcare, eradication of poverty,, more jobs, or any other benefits.

 

?      Apparently technical decisions concerning it regulation, bandwidth allocation, pricing mechanism, transmission standards etc, can have profound effects on whether or not information technologies benefit ordinary Indians. One case is the requirement that internet service providers guarantee to cover an entire state. This effectively precluded local entrepreneurs from providing internet connectivity in small & medium towns , unlike local initiatives that have helped spread satellite television rapidly in rural India. Analysis of the impact of technological decisions on it for the common man is largely absent.

 

?      Wiring India- until the cost of last mile of basic devices & of local language software are brought down , the goal of wiring India will remain unachieved . Though low cost technological solution alone cannot solve the problem, but they are requisites for it India.

 

?      Credibility- one cannot believe in what they are told. A no of projects that are publicized turn out , on a site visit , to have closed, or not yet to be in operation, or to have detoriated from their stated original goals.

 

PROMISES OF ICT-

 

One of the most promising uses of ICT. In practice , it involves distinguishable activities- E-governance- It is the computerization of government functions itself, as discussed specially by Andhra Pradesh. This proposes connecting the state government headquarters to district officials , computerizes registration, legal proceedings, land records, state offices etc, for the benefit of the administrators of the state. Also e-governance may also mean government to people and people to government connections whereby citizens obtain direct access to records, rules and information about entitlements that they need or want in their daily lives.

 

E-commerce- B2B , B2C, C2B, C2C platforms can be utilized fully for the benefit of the customers as also for the business organizations, for an efficient and smooth transaction, free and fair trade practices.

 

Commercial funding- commercially funded ICT networks have considerable promise. For e.g. the Warana project, though heavily funded initially by the state of Maharashtra and by Delhi , is currently maintained by the sugarcane co-operative in the area and offers tangible benefits to sugar producers and growers. The E.I.D. Parry project in Nelikuppan Tamil Nadu expects advantages in terms of  improved information to their producers about best agricultural practices. ITC-IBD has set up a large no IT Chaupals for soya bean, shrimp and coffee farmers with the goal of reducing the costs of production that currently go to middlemen. It has enabled economic capacity to proliferate at the base of the rural economy by providing farmers with farming know-how and services , timely and relevant weather information, transport price discovery and access to wider markets. Many people in developing countries lack access to basic financial services such as savings, credit, insurance and money transfers. Most of the transactions in such economies are in cash and involve very small amounts. Services supporting the unique requirements of these types of financial transactions can be very useful. A case in the point is M-PESA, one of the more popular services for developing countries ,offered by safaricom which is Kenya’s leading telecommunications company. Currently only 10% of Kenyans have formal bank accounts and M-PESA allows people without bank accounts to complete simple financial transactions, primarily person-to-person money transfer. Since the introduction of the service in march 2007, three million users have registered, and the service has been growing in popularity.

 

While the needs and wants of the urban wealthy are familiar to the developed world , the unique needs of communities closer to the base of the pyramid suggest interesting new services opportunities.

 

At IBM’s India research laboratory , the researchers are trying to develop a mobile software platform, called the ‘ spoken web’, for delivering the above kinds of services to communities in emerging countries . the spoken web is a network of voice sites , which exists and operates on the telephony network rather than the internet. Accessing the spoken web does not require an expensive computer , an internet connection or the ability to read and write . people can browse voicesites by talking to them and traverse from one voicesites from another via voilinks, and even conduct transactions simply by talking. What’s more a phone number can act like a URL in the traditional web , and one does not need a high end mobile device to access the spoken web, a plain old rotary phone can do the job. Interaction with customers and dissemination of government information everything can be possible in the mobile web.

 

 

INDIAN KNOWLEDGE SOCIETY

 

                     Even though there are huge disparities en-route to informatisation, India’s focus on growth of the ICT sector has paid rich dividends in terms of export earnings, employment generation and its image of an emerging economy. Large corporations are becoming competitive by  deploying enterprise wide solutions to interpret data and make panning and decision making data based. Many have started to feel that the next century will be the century of knowledge. A nation’s ability to convert knowledge into wealth and social good through the process of innovations going to determine its future. The economics of knowledge will dominate the coming century.

              

                     To meet the twin objective of growth with equity ,knowledge cannot be the prerogative of a few, everyone in the society must have access to knowledge and become knowledge workers. Nations which do not create knowledge societies will vanish into the oblivion. But those that do create knowledge societies will have the potential to lead the world. Now before embarking into a knowledge society , one must first know what is a knowledge society? Creation of a knowledge society should revolve around creating, sharing and using knowledge and information to create wealth and improve the quality of life. Knowledge can be defined as familiarity gained by research and experience, and includes

Know What (knowledge about the fact), Know Why (scientific knowledge of the principals and laws of nature), Know How (skills or the capability to do something) and Know Who (information about who knows what and how to do what).

                      If the Indian society has to become a knowledge society, then it is important that every Indian becomes a knowledge worker. We need to recognize the concept of a knowledge worker  in the broadest possible sense .It is not scientists and technologists alone, who will be knowledge workers .Even a farmer can be a knowledge worker, provided he understands the soil that he is sowing his seeds in and how he lives in an information village, where he has the benefit of short and medium range weather forecasting to plan his farming activity and so on.

 

 

PRIORITY OF A KNOWLEDGE SOCIETY

 

                     A knowledge society is characterised by new structures of knowledge, methods of dissemination and a technology that permits and sustains unrestricted access to knowledge control over it. Since all human activity uses and creates knowledge, the existing societies are also, in this sense, knowledge societies. Human activity uses and creates knowledge and each society should be characterised and identified by its knowledge base (Lokavidya).

           

                         The societal transformation has to be through large-scale development in education, health-care, agriculture and governance. These will turn to employment generation, high productivity and rural prosperity. Such models should aim to provide opportunity for rural economic development and prosperity. Youth in the locality could be easily trained to cater to the requirement of IT enabled services. This will also make available place and manpower at very cheaper rates when compared to urban localities. This will also aid in stopping movement of families towards urban localities .More so the model should try to improve the quality of life in rural places. Knowledge powered rural development is a essential need for transforming India into a knowledge power and high bandwidth rural connectivity is the minimum requirement to take education, health care, and economic dynamism to the rural areas. Knowledge society leading to knowledge superpower can prosper and survive only in the environment of economic security and internal security. Nation has to work for transformation into developed India. For eg if people find that they can book railway tickets through the web in a reliable and secure manner , then nobody will take the pains to travel by scooter or the bike.

 

 

 

CASE STUDY 4

 

 The knowledge system for sustainable food security in the villages of Pondicherry has the empowerment of rural women, men and children with information relating to ecological agriculture,economic access and utilisation as its goal. Such a knowledge system is being managed by the local youth at the village knowledge centre from where the computer aided information system is operated. Farmers who are becoming the knowledge workers are also being trained to maintain a “soil health card “to monitor the impact of farming systems on the physical,chemical and microbiological components of soil fertility.

 

           Enlightened citizens empowered with knowledge will be able to see the crucial link between the 5 E’s namely environment,ecology, economics,equity and ethics. They will then not be guided by misinformation fed by vested interest groups. But they will use their knowledge to decide on their own as to what is wrong and what is right. They will not stop projects that lead to economic development but they will stop those that lead to destruction .

 

CASE STUDY 5

 

     ICT policy of Malaysia

 Malaysia being a middle income economy is able to shift from agrarian society in a single generation(during 60′s to 80′s).ICT has played a dual role in the development of Malaysia, one in product sector and another one   as a strategic enabler. Malasia took two major initiatives to address both the issues of economic competitiveness and social equality, such as Multimedia Super Corridor(MSC) targeting economic development and National Information Technology Agenda(NITA) targeting social development. In 1996 National Information Technology Council (NITC was formed in 1994) came out with national IT agenda , with a people centred approach to development. Ita was operationalised with five e-trusts model. They are e-economy,e-public services, e-community, e-learning,and e- sovereignity.

 

   Access to knowledge can impact effectiveness when individuals feel enriched (with new ideas, solutions to problems) and are able to seek information at the time and place where it is needed. Thus knowledge management initiatives should supplement traditional networking through face to face contact. The rural populace lacks the life skills required to filter through the vast information available on the Internet and identify information most relevant to them. The role of intermediaries in interpreting the information needs of rural communities ,collecting the information from public domain sources and dissemination of the information in local text and idiom is very important, as has been demonstrated in pilots in Kothamale and in Pondicherry.

 

  STEPS NEEDED FOR FULL PROOF KNOWLEDGE SOCIETY

 

?      Creation of IT mind set in India-

Information and technology are moving so fast that it has been impossible for general public to keep a tab on the events. There is a  need for awareness of it among the people and its utilisation. For e.g. many people though know what is Internet, they dabble with only its minimal applications whereas it has far reaching and in-depth utilisation and impact.

 

?      Promoting development of an enabling policy environment-

To be a knowledge society India needs to develop holistic national policy promoting an enabling environment for a knowledge society for all .In the policy development process special efforts should be taken to address to equitable access, human resources, and application development. Also the linkages between the knowledge society and media and in particular public service broadcasting as a conduit for educational and cultural content should be addressed as an integral part of the policy formulation process and media law revisions .In formulating policy India should encourage transparent dialogue with all the members including the civil society ,communities and private and public sector agencies.

 

?      Promoting equitable access-

India should promote shared access through community multimedia centres and conduct assessment of current access models. India should support innovations in low cost community access targeted specially at marginalised groups. With the possibility to use ICT, librarians and archivists offer great potential as knowledge workers. Many libraries and archives in the region do not provide online access to their readers .Libraries if properly equipped with ICT ,can become for many people an effective gateway to the information society.

 

?      Enhancing knowledge management capacity-

The process of knowledge management for both content and availability is an essential part of modernisation. Human resource development in information management for knowledge workers should take a central place in India’s communication and information programme. To support capacity building, particularly in the area of human resource development,India should provide training of local trainers in the fields of ICT at various levels. Also India should promote specialised training programmes for disadvantaged groups to reap the benefits of ICT particularly in ICT enabled learning and enterpreneurial opportunities.

 

?      Developing appropiate content

 India to promote appropiate content development ,should rely on creating proactive partnerships with extension services (education,agriculture,health),government agencies,non-governmental agencies,media organisations,and professional organistions. It should be geared towards the ethos and relevance of the local people,and their problems and needs. The universal access cannot be achieved without promoting multilingualism in cyberspace. India should also motivate and support the efforts of public institutes and universities to identify and promote technologies and tools capable of digitizing local contents.

 

?      Developing Public Service Broadcasting

India should continue to harness the potential educational and cultural role of Public Service Broadcasting and need for public service broadcasting to reposition itself to fulfill this function. The challenge to transform public service broadcasting as a democratic platform and an enabling tool for masses to migrate into an eventual knowledge society remains relevant. This is more so with the potential to use broadcasting as a disseminating technology for distance learning in remote rural areas with the possibility of simultaneous data casting of distance learning modules. Repositioning Public Service Broadcasting to act as an interface to bring benefits of ICT to the greatest number of people is a real challenge. India in collaboration with the partners should strive to introduce sharing of high quality educational  content through the public service broadcasting systems .There is also a need to ensure a greater gender balance and to supporting media training for women.

 

?      Promoting community radio

The central public interest principle in broadcasting is that of universal access. This principle of access should allow people to participate meaningfully in their community and society. It also includes greater access to the means of production and participating in broadcasting. Community owned and operated radio networks can make radio a truly participatory communication tool. Community radio 

Stimulates community participation Raises the efficiency of decentralisation, enhances local level transparency and accountability. and Involves people in the design ,implementation and evaluation of local development programmes.

Community radio also has the potential to act as an interface between communities and internet. Converting community radio into multimedia centres with access to information networks should be main thrust of India’s approach to promote community radio.

 

?      Regional flagship programmes

India should establish regional flagship programmes.

ICT’s for reaching the unreached -should focus on developing sustainable operational models for the unreached groups to access and use knowledge resources for development. Supporting development of national information and communication policies .Should develop a resource kit for information and communication policy formulation leading to knowledge society. This will include comprehensive guidelines on the policy development process with civil society participation and Human resource development -should include development of interactive self-learning training courses to increase the skills of the local trainers as well as increasing access to knowledge resources through a portal.

 

CASE STUDY 6

 

E-SEVA  project  of Andhra Pradesh-

 

From a mere 4,800 transactions a month in august 2001 to a whooping 7.5 lakh transactions a month in February 03, e-seva , Andhra Pradesh , G2C ( Government to citizen)  utilities  service project  has come of age , offering nearly 43 services ranging from payment of utility bills to issuing of certificates, permits to licenses, reservation of buses to B2C services.

 

 

CASE STUDY 7

 

The project SAUKARYAM

 

Saukaryam in Vishakapatnam is among the few projects using the net effectively to connect citizens to civic administration in real time. People can settle their bills online , check the status of building and water supply plans , receive information on births and deaths, track garbage clearance , even scan tender notices. The idea behind the project is to track every service that is offered by the corporation online; from taxation to public works to city sanitation. Also it offers a discussion forum for people.

 

CONCLUSION

 Though India can boast of an informatisation process which is going down well, yet it would be blunderous on its part to get smugged off easily with its partially achieved success. The problems which are seemingly appearing minuscule, are only the tip of an iceberg, which urgently requires timely intervention, before it assumes gigantic proportion. Instead of resting on its laurels , the government should take note of the loopholes in the machinery itself, which affect seriously the vision of this project.

 

BIBLIOGRAPHY

  1.”Within a decade….family members”, India’s communication revolution-from bullock carts to cyber marts—Everett M Rogers and Arvind  Singhal—Sage Publications.

2. ”In the case of personal computers….affordable range”. India’s communication revolution-from bullock carts to  cyber marts—Everett M Rogers and Arvind Singhal—Sage Publications.

1.. Case Study 1,—-India’s communication revolution-from bullock carts to       cyber marts—Everett M Rogers and Arvind Singhal—Sage Publications.

2. Communication revolution—Kewal J Kumar.

3.www.bsnl.in

Corporate response: Competitive response and risk management
Corporations are faced with meeting economic, environmental and social goals. There are two key ways in which corporations will respond within the economics of climate change:

· Competitive response and developing the opportunity set – mainly focuses on mitigation. Climate change becomes a focus of corporate attention and corporations launch new business opportunities;
· Risk management – mainly focuses on adaptation and corporate responsibility. Increasingly, markets will start to focus on the net carbon position of companies and businesses will integrate climate change risk into their policies and procedures.

Increased corporate focus on climate change
Over the past year, the public discourse on climate change has been active:

· In advance of the Bali conference, 150 leaders of global companies issued a communiqué underscoring the urgency of climate change action. The business leaders wrote that a legally binding UN agreement to reduce greenhouse gas emissions is necessary for businesses to make the right investments in clean technologies and infrastructure, and that an extended carbon market needs to be part of the framework because it allows for flexibility and a low-cost transition to a low-carbon economy;
· As businesses have advocated for a robust post-Kyoto agreement, companies are channelling funds towards increasing the supply of clean technology and investment in the sector has grown;
· Businesses also have been vocal at the G8, underscoring the need for a ‘rapid and fundamental strategy to reach a low-carbon world economy’ in a paper delivered to Prime Minister Fukada of Japan at the G8 meeting in Hokkaido-Toyako;
· A McKinsey survey reveals that 60% of global executives regard climate change as strategically important and a majority consider it important to product development, investment planning and brand management. 34% of executives in China, 37% of those in Europe and 40% of respondents in India report that their companies frequently or always consider climate change in overall strategy.

Competitive Response – Where are the opportunities?
Markets for climate change products and climate change-related businesses are growing fast:

· In 2007, there were nearly 500 Private Equity and Venture Capital deals in climate change – representing $13.5 billion of investment. This is up 46% from 2006;
· There were 1,900 Private Equity and Venture Capital investors in climate change in 2007;
· In 2007, Germany, China and the United States were the leading investors in new renewable energy capacity with $14 billion, $12 billion and $10 billion respectively;
· There are close to 300 mutual fund managers acting in the climate change space, along with a growing number of hedge funds and private equity managers;
· No less an oilman than T. Boone Pickens has announced plans to build 4 GW of wind capacity in Texas – and is running commercials promoting alternative energy;
· Renewable businesses are growing to scale. Iberdrola Renovables was the second biggest IPO of 2007 by funds raised, with a deal value of $6 billion – and the funds raised by IPOs for clean tech companies across the board increased by over 300%, from $7.5 billion in 2006 to $32 billion in 2007;
· As part of the Masdar Initiative, Abu Dhabi – an emirate that holds about 8% of the world’s oil reserves – broke ground in 2008 on a revolutionary clean city. The broader initiative, which was launched in 2006, aims to promote energy efficiency and develop alternative sources of energy and $15 billion has been announced for new green investments;
· Alternative energy dominates capacity additions in some markets: wind made up 40% of newly installed electric power generation capacity in Europe in 2007;
· Estimates show that the global market for emissions trading will soon be worth $150 billion;
· Global investment in sustainable energy broke all previous records with $148.4 billion of new money raised in 2007, an increase of 60% over 2006;
· The IEA forecasts a massive scale-up of investment to $45 trillion in order to meet the joint objectives of build-out of the energy infrastructure and mitigation of climate change.

Risk Management – What are the risks and how are they being managed?

· The insurance industry has already begun to feel the effects of climate change and takes the issue seriously. In the US insurers have started to cancel homeowner policies in hurricane and wildfire risk areas;
· In 2007, a group of global insurers, re-insurers and brokers developed a set of ‘ClimateWise’ principles in response to global warming, designed to promote greener policies. The principles will enable companies throughout the world to build climate change into their business operations;
· Some insurance companies are already adjusting their products and services to suit emerging markets that have resulted from climate change such as weather risk, carbon trading and the clean technology industry;
· The Carbon Disclosure Project (CDP) operates to create lasting relationships between shareholders and corporations regarding implications for shareholder value and commercial operations presented by climate change. It represents 385 institutional investors with a combined $57.5 trillion of assets under management;
· A coalition in the US, led by Ceres, has encouraged improved climate change disclosure and governance at dozens of companies and has engaged with regulators such as the Securities and Exchange Commission by calling for publicly traded companies to assess and fully disclose their financial risks from climate change;
· We are seeing more attempts to measure the net carbon position of companies and then assess carbon risk or carbon beta.

In summary, Climate Change awareness and Clean Technology is here to stay, and is rapidly becoming a mainstream agenda item for most companies – regardless of the product, demographic, and sector.

The Law Commission of India, in its 128th Report (1988) examines the “cost of litigation” and suggested ways to compensate the wronged party so that cost of litigation does not become an impediment in the road to justice. This paper examines the cost of litigation in taxation matters, with special emphasis to taxation laws, reasons for frivolous litigation in these matters, its deleterious effect on the business environment of the country. The author will also suggest some ways to reduce litigation, to compensate the wronged party and in general improve the business environment of the country by bringing some measure of justice in the nation’s tax justice system.

Tax disputes are certain. In any assessment system such disputes will exist. However, such disputes bring uncertainty in the taxation matters, particularly Indirect taxation system where the person liable to pay tax does not bear the burden of tax, they merely collect the taxes from some other person and pays to the government, and they do it like BEGAR. When the system of dispute resolution fails or become oppressive, it spoils the business environment of the country and affects the growth of GDP adversely.

Tax dispute in Custom, Central Excise & Service Tax starts with issuance of Show Cause Notice. Unfortunately the Show Cause Notice is decided by departmental officers themselves, invariably the case is decided against the assessee. The first appellate authority is Commissioner (Appeals), who is equally biased and the matter invariably reaches to the Tribunal. One of a reputed author has spoken about adjudication,

“The whole adjudication process in Central Excise, Service Tax and Custom is a farce. ….Chances of getting justice at the level of Commissioner (Appeals) is 25%. …. Provision of pre deposit of duty in case of appeal to Commissioner (Appeals) has become a multi crore business. Assessees are loosing faith in adjudication process. ……. This encourages the assessee to use “short cuts” methods and off course revenue officers knows cost benefit analysis of the situation.”

A careful analysis of the situation results in following conclusions:

1. Departmental adjudication is a farce.

2. It fecilitates corruption.

3. It results in subversion of rule of law and loss of faith in judicial process.

Why are we continuing with such departmental adjudication? I don’t know.

There is a celebrated Nagarkar Case. In this case, a Commissioner in adjudication allegedly levied lesser penalty on the assessee and hence disciplinary proceeding started him. I am just asking from the revenue authorities as to in how many cases disciplinary proceeding has been initiated against departmental officers for issuing vexous Show cause notices which does not stand the scrutiny of law, of passing illegal orders against assessee which fell in appellate proceeding. None. Thus the revenue administration expects its officers to pass order in its favour. When such expectation is there in the revenue administration itself, there is no surprise that such departmental adjudication is subverting the rule of law by deteriorating the faith of assessee in departmental adjudication.

After such departmental adjudication, which takes approximately decade, when the assessee stand is found correct, he does not get any cost of litigation. In 1999, Section 254 (2)(2B) was added in the Income Tax Act, 1961 empowering the Tribunal to award cost. No such provision has been enacted in Custom, Central Excise & Service Tax laws. Even at the time of filing appeal to Appellate Tribunal, the government is not required to pay any fee, unlike the assessee.

Thus revenue administration has a vested interest in issuing frivolous notices, doing biased adjudication & filing frivolous appeals. It saves the departmental officers from nagarkar type disciplinary proceeding. However it results in piling of cases in Appellate tribunals and hamper their work of doing justice. It is not that no officer does justice in adjudication. There are a few officers who think justice should be done in adjudication. They do justice sometimes, but then the orders are reviewd and appeal is filed by the department. The result is same, piling of cases in tribunal, who is the first authority doing justice in taxation matters.

Where is the remedy? Do we need one or more specifically does the government needs one? I think government needs a remedy. It will improve business environment in the country leading to greater growth (and higher revenue). It will make India a better investment destination. It will reduce corruption. It will make the tax system more efficient.

Say, a commissionerate has to issue a Show Cause Notice. Issuing vexous notices also consumes equal amount of time in investigation, drafting, adjudication, appeal and burden the tax officers equally. At the end it is quashed and the government does not get anything out of it. If such vexous notices are not issued, revenue officers can concentrate on real tax evadors and will be able to plug the leakage of revenue in a better manner. When lesser adjudication will be required to be done, adjudicating officers can give sufficient opportunity to the assessee resulting in better adjudication. When better adjudication is done, lesser appeal will be filed resulting into better hearing of appeals and appreciation of contentious legal issues. Tax evadors will not be able to benefit from overburdened investigators, adjudicators and appellate authorities. On the other hand, honest assessees can concentrate on their work rather than defending vexous notices, leading to more production and better revenue.

Cost of litigation:

As a matter of general principle, cost of litigation shall be borne by the wrong party. If government has issued a vexous notices, or adjudicator has passed a biased order or frivolous appeal has been filed; the cost of litigation should be borne by the government. On the other hand if the assessee is contesting the notice in a frivolous manner, cost of litigation should be borne by the assessee. If there is a clear cut provisions for bearing of such cost, it will result in reduction in frivolous litigation, both by the government and assessee, and tax disputes shall be settled quickly and efficiently.

There is a provision of cost in Income Tax appellate tribunal, however such provisions are discretionary at the discretion of the tribunal. Such discretionary provisions results in non imposition of cost and does not act as a deterrent to frivolous litigation. Further, calculation of cost wastes precious time of the judicial authorities. It should be legislated in a manner of a fixed cost, with discretion to the tribunal to enhance/reduce it in appropriate cases.

In taxation matters value of duty demanded, penalty imposed etc. is always known and fixed. The cost of litigation may be calculated as percentage of disputed duty/penalty. Further the cost may be revised upward as the matter goes up. So, there can be 0.5% duty demanded at the level of original authority, 0.75% of duty/penalty at the level of Commissioner (Appeals), 1% at the level of CESTAT and may be going up to 2% at the level of Supreme Court. Alternatively it can be assessed as court fee payable on the like value of a civil suit, increasing in the same manner with each appellate stage.

A litigant (be it government or assessee) must know that if he is wrong, he has to bear the cost of litigation. Off course tribunal/courts shall have power to enhance/reduce cost in appropriate cases. Such a system will reduce abuse of legal process and results in a more just society. Further with such cost system, a common man shall be able to take recourse to judicial settlement of disputes without worrying about cost of litigation in just circumstances.

Am I asking justice from law, when philosophers say, “law is an engine of oppression”?

RAJESH KUMAR

 

The flood of counterfeit goods into the United States from the Far East, and especially China and India, has reached all time highs and is creating significant economic damage at home. This incredibly damaging, criminal activity is spurring the development of IP protective measures, such as security holograms.
Hologram Image

No-one wins when counterfeit products reach the market – the consumer buys goods which are not what they thought they were, while there may be serious consumer safety issues involved. Meanwhile, the manufacturer reaps the adverse reward of negative press and consumer comments because the counterfeit clings like a parasite to their brand image and reputation. The retail distributor finds they have goods they cannot sell and quite possibly, legal consequences of holding counterfeit products they ought not to have in the first instance.

The issue is how to protect your own brand and intellectual property in a cost effective manner, and at the same time, ensure security measures are in place which will deter counterfeiters from using your product as the basis for a counterfeit operation. The analogy of a homeowner ensuring all the doors and windows are locked, whilst fitting a highly visible alarm system to deter opportunistic thieves, is very appropriate in this context.

By applying a low-cost security device, design detail or production element to your product, you are making it harder for counterfeiters to profitably reproduce your goods. Security holograms provide an excellent method for separating your product from the competition, and counterfeiters will be assessing a range of products to see which is simpler, cheaper and most profitable for them to replicate. Making it more difficult to create a good imitation of your product by the counterfeiters, reduces the risk your product will be targeted by to begin with.

Security holograms can be produced as 2D or 3D images, the design of which is extremely difficult and costly for a counterfeiter to copy. You can use the hologram on the packaging (where it can act as a tamper evident safety feature) or place them on the actual product themselves. The presence of a security hologram acts in exactly the same was as a homeowner’s alarm system – it warns potential thieves to steer clear and try their hand at another product which is easier (and cheaper) to counterfeit.

The reasons why security holograms are highly effective in acting as a deterrent to counterfeiting, are because they are cost effective, deliver multiple security functions and can be easily customized and applied to your products or to protect other intellectual property you own.

Security holograms provide a highly visible guarantee that the goods are genuine and are not seeking to hoodwink customers with fake branding; in this regard, holograms are powerful components of your brand identity if you include them. Further security functions they perform include providing evidence the goods have not been tampered with and where they are used in conjunction with the brand image itself, they serve to protect the intellectual property which a brand represents. The hologram itself can be subjected to fast and effective optical validation, which provides an additional layer of protection for your goods and reputation as well as being an additional mechanism to convey data such as stock and handling information.

Security holograms cannot be copied using photocopiers or computer scanners, which is a favorite technique utilized by counterfeiters. It is also apparent when a hologram is real or not, given the ability to present a moving image to the viewer – the only way a counterfeiter can get around this security barrier is to source counterfeit holograms. This is prohibitively expensive to do, or the alternative, to leave the hologram off their counterfeit products, quickly serves to mark them out as not genuine.

As counterfeit products rise and the ability of the fraudsters to deceive the consumer increases, it is vital for companies to protect their brand and reputation. Security holograms are cheap to produce, and very simple to apply and manage through the distribution chain. The simple presence of a security hologram is enough to deter many counterfeiters from even attempting to replicate your product, which makes it easier to target those counterfeiters who are attacking your intellectual property rights and reputation.

1. Introduction

A system is a group of parts that interact through one or more processes (Odum 1983). The term ecosystem was introduced and defined by Tansley (1935), who as “a fundamental organizational unit of the natural world that includes both organisms and their spatial environment.” Ecosystems have since been defined in various ways, and at different spatial and temporal scales (Golley 1993; O’Neill et al. 1986; Evans 1956). Some ecologists define ecosystems on the basis of biotic organisms, populations, or communities. For example, Hutchinson (1978) considered the ecosystem to be the environmental context in which population or community dynamics occur. Others define ecosystems in terms of their abiotic characteristics and processes (Rowe and Barnes 1994). For example, Lindeman (1942) defined ecosystems as “…the system composed of physical, chemical, and biological processes active within a space/time unit.” Regardless of whether the emphasis is on biotic components or abiotic characteristics and processes of ecosystems, both remain integral to the concept of ecosystem. Rowe (1961) emphasized this when he defined ecosystems as “…a three dimensional segment of the earth where life forms and the environment interact.”

Wetland ecosystems have been defined in a variety of ways by researchers, resource managers, and regulatory authorities, depending on their specific needs and objectives (Mitsch and Gosselink 1993). In the applied world of regulation, planning, and management, wetlands are usually defined in terms of their physical, chemical, and biological characteristics such as hydrologic regime, soil type, and plant species composition. For example, in classifying wetlands for mapping, inventory, and other purposes, Cowardin et al. (1979) defined wetlands as “…lands transitional between terrestrial and aquatic systems where the water table is usually at or near the surface or the land is covered by shallow water…” that are characterized by the presence of hydrophytic vegetation, hydric soils, and surface water during the growing season.

Wetlands are often biodiversity ‘hotspots’ (Reid et al., 2005), as well as functioning as filters for pollutants from both point and non-point sources, and being important for carbon sequestration and emissions (Finlayson et al., 2005). The value of the world’s wetlands are increasingly receiving due attention as they contribute to a healthy environment in many ways. Wetland functions are defined as the normal or characteristic activities that take place in wetland ecosystems or simply the things that wetlands do. Wetlands perform a wide variety of functions in a hierarchy from simple to complex as a result of their physical, chemical, and biological attributes. For example, the reduction of nitrate to gaseous nitrogen is a relatively simple function performed by wetlands when aerobic and anaerobic conditions exist in the presence of denitrifying bacteria. Nitrogen cycling and nutrient cycling represent increasingly more complex wetland functions that involve a greater number of structural components and processes. At the highest level of this hierarchy is the maintenance of ecological integrity, the function that encompasses all of the structural components and processes in a wetland ecosystem. Wetlands are one of the most productive of all ecosystems, and carry out critical regulatory functions of hydrological processes within watersheds (Banner et al. 1988). Regulating water quality, water levels, flooding regimes, and nutrient and sedimentation levels are a few of these processes (Gregory et al. 1991). As with any natural habitat, wetlands are important in supporting species diversity and have a complex of wetland values. Moreover, the pattern of seasonal variation of the wetland affects the bird population fluctuation (Imran. A. D and Mithas. A. D 2009). Even small wetlands are extremely important to the conservation of biodiversity because they provide critical breeding habitat where dispersed populations can exchange genetic material, reducing the risks of extinction (Semlitsch and Brodie 1998).

The present review is aimed at providing in a nutshell, the distribution of wetlands, the value of Wetlands, the causes and consequences of the loss of wetlands and their conservation status with special reference to India.

 

2. Distribution of wetlands in India

 

In India a total area of 40494 km2  is classified as wetlands. This consists only 1.21 per cent of the total land surface. Most of the wetlands in India are directly or indirectly linked with major river systems such as the Ganga, the Cauvery, the Krishan, the Godavari and the Tapti. A Directory of Wetlands in India (1988) gives information on the location, area and ecological categorization of wetlands of our country. Wetlands in India are distributed in different geographical regions ranging from Himalayas to Deccan plateau. The variability in climatic conditions and changing topography is responsible for significant diversity. They are classified into different types based on their origin, vegetation, nutrient status, thermal characteristics, like 1. Glaciatic Wetlands (e.g., Tsomoriri in Jammu and Kashmir, Chandertal in Himachal Pradesh).

2. Tectonic Wetlands (e.g., Nilnag in Jammu and Kashmir, Khajjiar in Himachal Pradesh, and Nainital and Bhimtal in Uttaranchal).

3. Oxbow Wetlands (e.g., Dal Lake, Wular Lake in Jammu and Kashmir and Loktak Lake in Manipur and some of the wetlands in the river plains of Brahmaputra and Indo-Gangetic region. Deepor Beel in Assam, Kabar in Bihar, Surahtal in Uttar Pradesh).

4. Lagoons (e.g., Chilika in Orissa).

5. Crater Wetlands (Lonar lake in Maharashtra).

6. Salt water Wetlands (e.g., Pangong Tso in Jammu and Kashmir and Sambhar in Rajasthan)

7. Urban Wetlands (e.g., Dal Lake in Jammu and Kashmir, Nainital in Uttaranchal and Bhoj in Madhya Pradesh).

8. Ponds/Tanks, man-made Wetlands (e.g., Harike in Punjab and Pong Dam in Himachal Pradesh).

9. Reservoirs (e.g., Idukki, Hirakud dam, Bhakra-Nangal dam).

10. Mangroves (e.g., Bhitarkanika in Orissa).

11. Coral reefs (e.g., Lakshadweep).

12. Creeks (Thane Creek in Maharashtra), seagrasses, estuaries, thermal springs are some kinds of wetlands in the country.

The Indo-Gangetic flood plain is the largest wetland system in India, extending from the river Indus in the west to Brahmaputra in the east. This includes the wetlands of the Himalayan terai and the Indo-Gangetic plains. The vast intertidal areas, mangroves and lagoons along the 7500 kilometer long coastline in West Bengal, Orissa, Andhra Pradesh, Tamil Nadu, Kerala, Karnataka, Goa, Maharashtra and Gujarat. Mangrove forests of the Sunderbans of West Bengal and the Andaman and Nicobar Islands. Offshore coral reefs of the Gulf of Kutch, Gulf of Mannar, Lakshadweep and Andaman and Nicobar Islands.

Ninety-four wetlands have been identified for conservation and management under the National Programme for Conservation and Management of Wetlands.

These wetlands are eligible for financial assistance on 100% grant basis to the concerned State Governments for undertaking activities like survey and demarcation, weed control, catchment area treatment, desiltation, conservation of biodiversity, pollution abatement, livelihood support creation of minor infrastructure, educational awareness, capacity building of various stakeholders, and community development. So far 24 States have been covered; the remaining States are expected to the covered in the Eleventh Five-Year Plan.

Wetlands play a vital role in maintaining the overall cultural, economic and ecological health of the ecosystem, their fast pace of disappearance from the landscape is of great concern. The Wildlife Protection Act protects few of the ecologically sensitive regions whereas several wetlands are becoming an easy target for anthropogenic exploitation. Survey of 147 major sites across various agro climatic zones identified the anthropogenic interference as the main cause of wetland degradation (The Directory of Indian Wetlands 1993). Current spatial spread of wetlands under various categories is shown.

 

3. Wetland losses – a threat to ecological balance

 

Threats to wetland ecosystems comprise the increasing biotic and abiotic pressures and perils.

Biotic

(1) Uncontrolled siltation and weed infestation.

(2) Uncontrolled discharge of waste water, industrial effluents, surface run-off, etc. resulting

in proliferation of aquatic weeds, which adversely affect the flora and fauna.

(3) Tree felling for fuel wood and wood products causes soil loss affecting rainfall pattern,

loss of various aquatic species due to water-level fluctuation.

(4) Habitat destruction leading to loss of fish and decrease in number of migratory birds.

Abiotic

(1) Encroachment resulting in shrinkage of area.

(2) Anthropogenic pressures resulting in habitat destruction and loss of biodiversity.

(3) Uncontrolled dredging resulting in successional changes.

(4) Hydrological intervention resulting in loss of aquifers.

(5) Pollution from point and non-point sources resulting in deterioration of water quality.

(6) Ill-effects of fertilizers and insecticides used in adjoining agricultural fields.

Coastal ecosystems are among the most productive yet highly threatened systems in the world. These ecosystems produce disproportionately more services relating to human well-being than most other systems, even those covering larger total areas, but are experiencing some of the most rapid degradation and loss:

(1). About 35% of mangroves have been lost over the last two decades, driven primarily by aquaculture development, deforestation, and freshwater diversion.

(2). Some 20% of coral reefs were lost and more than a further 20% degraded in the last several decades of the twentieth century through overexploitation, destructive fishing practices, pollution and siltation and changes in storm frequency and intensity.

(3). There is established but incomplete evidence that the changes being made are increasing the likelihood of nonlinear and potentially abrupt changes in ecosystems, with important consequences for human well-being. These nonlinear changes can be large in magnitude and difficult, expensive, or impossible to reverse. For example, once a threshold of nutrient loading is crossed, changes in freshwater and coastal ecosystems can be abrupt and extensive, creating harmful algal blooms (including blooms of toxic species) and sometimes leading to the formation of oxygen-depleted zones, killing all animal life. Capabilities for predicting some nonlinear changes are improving, but on the whole scientists cannot predict the thresholds at which change will be encountered. The increased likelihood of these nonlinear changes stems from the loss of biodiversity and growing pressures from multiple direct drivers of ecosystem change. The loss of species and genetic diversity decreases the resilience of ecosystems —their ability to maintain particular ecosystem services as conditions change. In addition, growing pressures from drivers such as overharvesting, climate change, invasive species, and nutrient loading push ecosystems toward thresholds that they might otherwise not encounter.

(4). Many wetland-dependent species in many parts of the world are in decline; the status of species dependent on inland waters and of waterbirds dependent on coastal wetlands is of particular concern. Although the evidence has geographical limitations and is chiefly from species already globally threatened with extinction.

The primary indirect drivers of degradation and loss of rivers, lakes, freshwater marshes, and other inland wetlands (including loss of species or reductions of populations in these systems) have been population growth and increasing economic development. The primary direct drivers of degradation and loss include infrastructure development, land conversion, water withdrawal, pollution, overharvesting and overexploitation, and the introduction of invasive alien species.

The current loss rates in India can lead to serious consequences, where 74% of the human population is rural (Anon. 1994) and many of these people are resource dependent. Healthy wetlands are essential in India for sustainable food production and potable water availability for humans and livestock. They are also necessary for the continued existence of India’s diverse populations of wildlife and plant species; a large number of endemic species are wetland dependent. Most problems pertaining to India’s wetlands are related to human population. India contains 16% of the world’s population, and yet constitutes only 2.42% of the earth’s surface. Indian landscape has contained fewer and fewer natural wetlands over time. Restoration of these converted wetlands is quite difficult once these sites are occupied for non-wetland uses. Hence, the demand for wetland products (e.g., water, fish, wood, fiber, medicinal plants etc.) will increase with increase in population. Wetland loss refers to physical loss in the spatial extent or loss in the wetland function. The loss of one km2 of wetlands in India will have much greater impacts than the loss of one km2 of wetlands in low population areas of abundant wetlands (Foote Lee et al. 1996). The wetland loss in India can be divided into two broad groups namely acute and chronic losses. The filling up of wet areas with soil constitutes acute loss whereas the gradual elimination of forest cover with subsequent erosion and sedimentation of the wetlands over many decades is termed as chronic loss.

 

Acute wetland losses

 

(1). Direct deforestation in wetlands: Mangrove vegetation are flood and salt tolerant and grow along the coasts and are valued for fish and shellfish, livestock fodder, fuel wood, building materials, local medicine, honey, bees wax and for extracting chemicals for tanning leather (Ahmad 1980). Alternative farming methods and fisheries production has replaced many mangrove areas and continues to pose threats. Eighty percent of India’s 4240 km2 of mangrove forests occur in the Sunderbans and the Andaman and Nicobar Islands (Anon. 1991). But most of the coastal mangroves are under severe pressure due to the economic demand on shrimps. Important ecosystem functions such as buffer zones against storm surges, nursery grounds and escape cover for commercially important fishery are lost. The shrimp farms also caused excessive withdrawal of freshwater and increased pollution load on water like increased lime, organic wastes, pesticides, chemicals and disease causing organisms. The greatest impacts were on the people directly dependent on the mangroves for natural materials, fish proteins and revenue. The ability of wetlands to trap sediments and slow water is reduced.

(2). Hydrologic alteration: Alteration in the hydrology can change the character, functions, values and the appearance of wetlands. The changes in hydrology include either the removal of water from wetlands or raising the land-surface elevation, such that it no longer floods. Canal dredging operations have been conducted in India from 1800s due to which 3044 km2 of irrigated land has increased to 4550 km2 in 1990 (Anon. 1994). Initial increase in the crop productivity has given way for reduced fertility and salt accumulations in soil due to irrigated farming of arid soils. India has 32,000 ha of peat-land remaining and drainage of these lands will lead to rapid subsidence of soil surface.

(3). Agricultural conversion: The primary direct driver of the loss and degradation of coastal wetlands, including saltwater marshes, mangroves, seagrass meadows, and coral reefs, has been conversion to other land uses.  In the Indian subcontinent due to rice culture, there has been a loss in the spatial extent of wetlands. Rice farming is a wetland dependent activity and is developed in riparian zones, river deltas and savannah areas. Due to captured precipitation for fishpond aquaculture in the catchment areas and rice-farms occupying areas that are not wetlands, water is deprived to the downstream natural wetlands. Around 1.6 million hectares of freshwater are covered by freshwater fishponds in India. Rice-fields and fishponds come under wetlands, but they rarely function like natural wetlands. Of the estimated 58.2 million hectares of wetlands in India, 40.9 million hectares are under rice cultivation (Anon. 1993).

 

Chronic wetland losses

 

(1). Degradation of water quality:  Water quality is directly proportional to human population and its various activities. More than 50,000 small and large lakes are polluted to the point of being considered ‘dead’ (Chopra 1985). The major polluting factors are sewage, industrial pollution and agricultural runoff, which may contain pesticides, fertilizers and herbicides.

(2). Introduced species and extinction of native biota:  Wetlands in India support around 2400 species and subspecies of birds. But losses in habitat have threatened the diversity of these ecosystems (Mitchell & Gopal 1990). Introduction of exotic species like water hyacinth (Eichornia crassipes) and salvinia (Salvinia molesta) have threatened the wetlands and clogged the waterways competing with the native vegetation.  In a recent attempt at prioritization of wetlands for conservation, Samant (1999) noted that as many as 700 potential wetlands do not have any data to prioritize. Many of these wetlands are threatened.

(3). Ground water depletion:  Draining of wetlands has depleted the ground water recharge. Recent estimate indicates that in rural India, about 6000 villages are without a source for drinking water due to the rapid depletion of ground water.

 

4. Condition and Trends in Wetland-dependent Species

 

There is increasing evidence of a rapid and continuing widespread decline in many populations of wetland-dependent species. Data on the status and population trends of species in some inland wetland-dependent groups, including mollusks, amphibians, fish, waterbirds, and some water-dependent mammals, have been compiled and show clear declines. An overall index of the trend in vertebrate species populations has also been developed and shows a continuous and rapid decline in freshwater vertebrate populations since 1970—a markedly more drastic decline than for terrestrial or marine species.

Even in the case of more poorly known wetland fauna, such as invertebrates, existing assessments show that species in these groups are significantly threatened with extinction. For example, the IUCN Red List reports that some 275 species of freshwater crustacea and 420 freshwater mollusks are globally threatened, although no comprehensive global assessment has been made of all the species in these groups. In the United States, one of the few countries to comprehensively assess freshwater mollusks and crustaceans, 50% of known crayfish species and two thirds of freshwater mollusks are at risk of extinction, and at least one in 10 freshwater mollusks are likely to have already gone extinct. Nearly one third (1,856 species) of the world’s amphibian species are threatened with extinction, a large portion of which (964 species) are freshwater-dependent. (By comparison, just 12% of all bird species and 23% of all mammal species are threatened.) In addition, at least 43% of all amphibian species are declining in population, indicating that the number of threatened species can be expected to rise in the future. In contrast, less than 1% of species show population increases. Species dependent on flowing water have a much higher likelihood of being threatened than those in still water. (Figure 5) Basins with the highest number of threatened freshwater species— between 13 and 98 species—include the Amazon, Yangtze, Niger, Paraná, Mekong, Red and Pearl (China), Krishna (India), and Balsas and Usumacinta (Central America). The rate of decline in the conservation status of freshwater amphibians is far greater than that of terrestrial species. As amphibians are excellent indicators of the quality of the overall environment, this underpins the notion of the current declining condition of freshwater habitats around the world.

 

Key vulnerabilities

 

Gitay et al. (2001) have described some inland aquatic ecosystems (Arctic, sub-Arctic ombrotrophic bog communities on permafrost, depressional wetlands with small catchments, drained or otherwise converted peatlands) as most vulnerable to climate change, and have indicated the limits to adaptations due to the dependence on water availability controlled by outside factors. More recent results show vulnerability varying by geographical region (Stern, 2007). This includes significant negative impacts across 25% of Africa by 2100 (SRES B1 emissions scenario, de Wit and Stankiewicz, 2006) with both water quality and ecosystem goods and services deteriorating. Since it is generally difficult and costly to control hydrological regimes, the interdependence between catchments across national borders often leaves little scope for adaptation.

 

Impacts

 

Climate change impacts on inland aquatic ecosystems will range from the direct effects of the rise in temperature and CO2 concentration to indirect effects through alterations in the hydrology resulting from the changes in the regional or global precipitation regimes and the melting of glaciers and ice cover (e.g., Chapters 1 and 3; Cubasch et al., 2001; Lemke et al., 2007; Meehl et al., 2007). Studies since the TAR (Third assessment report of IPCC) have confirmed and strengthened the earlier conclusions that rising temperature will lower water quality in lakes through a fall in hypolimnetic oxygen concentrations, release of phosphorus (P) from sediments, increased thermal stability, and altered mixing patterns (Jankowski et al., 2006). In northern latitudes, ice cover on lakes and rivers will continue to break up earlier and the ice-free periods to increase (Duguay et al., 2006). Higher temperatures will negatively affect micro-organisms and benthic invertebrates (Kling et al., 2003) and the distribution of many species of fish (Kling et al., 2003); invertebrates, waterfowl and tropical invasive biota are likely to shift polewards (Zalakevicius and Svazas, 2005) with some potential extinctions. Major changes will be likely to occur in the species composition, seasonality and production of planktonic communities (e.g., increases in toxic blue-green algal blooms) and their food web interactions (Winder and Schindler, 2004) with consequent changes in water quality. Enhanced UV-B radiation and increased summer precipitation will significantly increase dissolved organic carbon concentrations, altering major biogeochemical cycles (Frey and Smith, 2005). Studies along an altitudinal gradient in Sweden show that NPP can increase by an order of magnitude for a 6°C air temperature increase (Karlsson et al., 2005). However, tropical lakes may respond with a decrease in NPP and a decline in fish yields (e.g., 20% NPP and 30% fish yield reduction in Lake Tanganyika due to warming over the last century ­ O’Reilly et al., 2003). Higher CO2 levels will generally increase NPP in many wetlands, although in bogs and paddy fields it may also stimulate methane flux, thereby negating positive effects (Zheng et al., 2006). Boreal peatlands will be affected most by warming and increased winter precipitation as the species composition of both plant and animal communities will change significantly (Weltzin et al., 2000, 2001, 2003; Berendse et al., 2001; Keller et al., 2004;). Numerous arctic lakes will dry out with a 2-3°C temperature rise (Smith et al., 2005 . The seasonal migration patterns and routes of many wetland species will need to change and some may be threatened with extinction. Small increases in the variability of precipitation regimes will significantly impact wetland plants and animals at different stages of their life cycle. In monsoonal regions, increased variability risks diminishing wetland biodiversity and prolonged dry periods promote terrestrialisation of wetlands as witnessed in Keoladeo National Park, India (Chauhan and Gopal, 2001).

 

5. Wetland management – current status

Wetlands are not delineated under any specific administrative jurisdiction. The primary responsibility for the management of these ecosystems is in the hands of the Ministry of Environment and Forests. Although some wetlands are protected after the formulation of the Wildlife Protection Act, the others are in grave danger of extinction. Effective coordination between the different ministries, energy, industry, fisheries revenue, agriculture, transport and water resources, is essential for the protection of these ecosystems.

 

Cardinal Constituents of Comprehensive Strategy for Wetland Conservation:

 

The conservation and management of wetlands calls for a comprehensive strategy, ranging from legal framework and policy support to inventorization, institutional mechanism, capacity building, and community participation. The position with regard to these aspects is as follows:

 

Legal framework

 

Though there is no separate provision for specific legal instrument for wetland conservation, the legal framework for conservation and management is provided by the following legal instruments:

1. Several legislations have been enacted which have relevance to wetland conservation. These include Forest Act, 1927, Forest (Conservation) Act, 1980, the Wildlife (Protection) Act, 1972, the Air (Prevention and Control of Pollution) Act, 1974, the Water Cess Act, 1977 and the umbrella provision of Environment (Protection) Act, 1986.

2.  India has set up 505 Wildlife Sanctuaries and 100 National Parks, 14 Biosphere Reserves, 6 Heritage Sites, Projects on Tiger conservation and Elephant conservation and Marine Turtles conservation with the objective of effective conservation of wetlands, and floral and faunal wealth in forest areas.

3. Notification declaring the coastal stretches of seas, bays, estuaries, creeks, rivers and backwaters, which are influenced by tidal action (in the landward side) up to 500 metres from the high tide line, and the land between the low tide line and the high tide line as the Coastal Regulation Zone Notification, 1991 under the provision of Environment (Protection) Act, 1986. This proposes graded restriction on setting up and expansion of industries, including pressures from human activities.

4. Portions of the listed sites have been declared as Wildlife Sanctuaries and National Parks.

5. Guidelines for sustainable development and management of brackish water aquaculture have  been drawn up. State Governments like Andhra Pradesh and Tamil Nadu have aquaculture guidelines also at the local level.

6. The Biodiversity Act, 2002, and the Biodiversity Rules, 2004, are aimed at safeguarding the floral and faunal biodiversity, and regulating their flow from the country to other countries for research and commercial use. Thus, their provisions also contribute towards conserving, maintaining, and augmenting the floral, faunal and avifaunal biodiversity of the country’s aquatic bodies.

 

Policy Support: National Environment Policy (NEP), 2006

 

Our National Environment Policy (NEP), approved by the Cabinet on 19 May 2006, recognizes the numerous ecological services rendered by wetlands. The NEP states:

  ‘Wetlands are under threat from drainage and conversion for agriculture and human settlements, besides pollution. This happens because public authorities or individuals having jurisdiction over wetlands derive little revenues from them, while the alternative use may result in windfall financial gains to them. However, in many cases, the economic values of wetlands’ environmental services may significantly exceed the value from alternative use. On the otherhand, the reduction in economic value of their environmental services due to pollution, as well as the health costs of the pollution itself are not taken into account while using them as a waste dump. There also does not yet exist a formal system of wetland regulation outside the international commitments made in respect of Ramsar sites. A holistic view of wetlands is necessary, which looks at each identified wetland in terms of its causal linkages with other natural entities, human needs, and its own attributes.’

 

The Environmental Policy identifies the following six-fold Action Plan:

1. Set up a legally enforceable regulatory mechanism for identified valuable wetlands to prevent their degradation and enhance their conservation. Develop a national inventory of such wetlands.

2. Formulate conservation and prudent use strategies for each significant catalogued wetland, with participation of local communities, and other relevant stakeholders.

3. Formulate and implement eco-tourism strategies for identified wetlands through multi stakeholder partnerships involving public agencies, local communities and investors.

4. Take explicit amount of impacts on wetlands of significant development projects during the environmental appraisal of such projects; in particular, the reduction in economic value of wetland environmental services should be explicitly factored into cost-benefit analysis.

5. Consider particular unique wetlands as entities with ‘Incomparable Values’, in developing strategies for their protection.

6. Integrate wetland conservation, including conservation of village ponds and tanks, into sectoral development plans for poverty alleviation and livelihood improvement, and the link efforts for conservation and sustainable use of wetlands with the ongoing rural infrastructure development and employment generation programmes. Promote traditional techniques and practices for conserving village ponds.

 

Inventorization

 

Survey and inventorization should take into consideration identification of different human activities, effect of both industrial and domestic effluents, and information obtained through remote sensing to be verified with the ground truth data for getting proper results. This component includes mapping of catchment areas through revenue records, survey and assessment, and land-use pattern using GIS techniques, with emphasis on drainage pattern, vegetation cover, siltation cover, encroachment, conversion of wetlands, human settlements, total area encroached, human activities at the primary, secondary, and tertiary levels, and their impact on catchment and water body. The following surveys of wetlands have been undertaken so far:

1. Asian Wetland Directory, 1989 – identified 93 Wetlands of International Importance.

2. Wetland Directory published in 1990 by the Ministry of Environment and Forests using questionnaire survey.

3. Identification of 2167 natural freshwater wetlands covering 1.5 million ha area.

4. Identification of 65,253 man-made freshwater wetlands covering 2.6 million ha area.

5. WWF-India and the Ministry of Environment and Forests in 1993 identified 54 additional wetlands of international importance with more details.

6. Space Application Centre using remote sensing techniques identified 27,403 inland and coastal wetlands covering 7.6 million ha

7. Salim Ali Centre for Ornithology under UNDP project has undertaken survey of 72 districts.

8. A project on ‘National Wetland Information System and Updation of Wetland Inventory’ has been sanctioned by the Ministry of Environment and Forests. The objectives of this project are (1) to map and inventorize wetlands on 1:50,000 scale by on-screen interpretation of digital IRS LISS III data of post and pre-monsoon seasons, (2) to prepare State-wise wetland Atlases, and (3) to create a digital database in GIS environment in respect of all wetlands in the country.

9. The Centre for Advanced Studies in Marine Biology at Annamalai University, Parangipettai, has been assisted in project mode for updating all wetlands in the country.

 

Institutional mechanism

 

(a) It is imperative to have multi-disciplinary, holistic and integrated approach for achieving long-term sustainable wetland conservation and management measures. At present, various models exist in States and different nodal agencies are responsible for implementing the Wetland Conservation Programme. In some States, the programme is executed by the Department of Forests and/or Environment or Urban Development; in some others, it is the Department of Irrigation or Science and Technology or Fisheries. However, the Wetland Conservation and Management is a specialized technical and scientific field where multi-disciplinary approach is needed, involving a number of components like water management, sustainable fisheries development, hydrological aspects, socio-economic issues, community participation, weed control, biodiversity conservation and use of aquatic macrophytes for nutrient recycling process, hydrological aspects providing information about inflow/outflow pattern in the system, nutrient fluxes and nutritional dynamics. These aspects need to be dealt with in a coordinated manner by managers having expertise in the relevant fields.

(b) Taking into consideration the complexity of the issue, the State Steering Committees have been constituted under the chairmanship of Chief Secretaries of the States having members from all Departments concerned. The Committee is also expected to have representatives from communities, NGOs and academicians. The officer from the nodal department acts as a member-secretary of the Committee. The success of the programme depends upon its strong institutional mechanism where conservation efforts are undertaken through integrated and multi-disciplinary approach. However, due to inadequacy of infrastructure and staff, conservation activities are yet to acquire comprehensiveness and sustainability in some States.

State Governments have been advised to consider constitution of Wetland Conservation Authorities so that experts from various Departments undertake conservation activities in a more scientific, cohesive and sustainable manner.

(c) Some States have already constituted Authorities for execution of wetland conservation programmes in their respective States. Notable among them are Chilika Development Authority in Orissa (mandated to manage all identified lakes in the State); Loktak Development Authority in Manipur; Shore Area Development Authority in Andhra Pradesh; Lakes and Waterways Development Authority in Jammu and Kashmir; Lake Development Authority in Karnataka and Lake Conservation Authority in Madhya Pradesh.

 

Capacity building

 

Capacity building is a major tool without which no conservation activity is possible. We need to have good infrastructure, trained people, and case studies to teach values and functions of wetlands in an integrated and multi-disciplinary manner. The Ministry has taken several initiatives in this regard as per details given below.

(a) It has published several reports/documents on conservation and wise use of wetlands which include six monographs on Ramsar sites in collaboration with WWF India and eco-tourism guidelines for Chilika Lake.

(b) During the Tenth Five Year Plan, several training programmes have been conducted in collaboration with different academic organizations/research institutes/State Governments/international NGOs to impart training on various components of wetland conservation which include wise use, catchment area treatment, weed control, hydrological aspects, research methodology, preparation of management action plans and community participation. Training is imparted to policy makers, senior/ middle level managers, organizations, stakeholders and others. A National Training Programme for Integrated Water Resource Management and Wetland Conservation was organized during 7-11 August 2006 by Chilika Development Authority with the financial support from Ministry of Environment and Forests. More training programmes are proposed to be organized at different regions of the

Country.

A series of regional workshops were organized in various parts of the country to make people aware of the importance of wetlands and integrate their traditional knowledge in the planning process. The following regional and international workshops were organized during the Tenth Plan:

1 Western Region, Gujarat

2 Southern Region, Kerala

3 Eastern Region, Orissa

4 North-Eastern Region, Manipur

5 Central Region, Madhya Pradesh

6 Northern region, Uttar Pradesh

7 Northern region, Jammu and Kashmir

8 Southern region, Lakshadweep

9 International Workshop on High Altitude Wetlands, Sikkim

10 Meeting of Board of Directors of Wetland International, Rajasthan

Holding regional workshops along with research organizations and wetland managers is an ongoing feature.

 

Community Participation

 

(a) No decision-making is complete without participation of local people whose livelihoods depend on wetland resources. People have been using wetlands since time immemorial. We have to blend both traditional and latest scientific technologies to achieve long-term conservation goals. Participatory Rural Appraisal exercise involving local communities should be the main ingredient of community participation. It should also take into consideration issues of women and gender sensitization and involve women in the management process.

(b) The component of community participation comprises the following constituents.

1. Assessment of resource availability by surveys and participatory rural appraisal of the site.

2. Stakeholder analysis

3. Contact with external institutions for resource and technical advice

4. Utilization of wastes and aquatic weeds for energy regeneration, for example through installation of community- based biogas plants.

5. Additional alternate income generation programmes like handloom, handicrafts, integrated farm management techniques and other measures to reduce pressure on wetlands.

6. Highlighting of gender-related cross-cultural, governance-related practices and other special concerns for assessment by community.

(c) The Joint Forest Management Committees (JFMCs), also referred to as Village Protection Committees (VPCs) or Eco-Development Committees (EDCs), are expected to play an active role in conservation and management of wetlands located in forest fringe areas, i.e. normally within a radius of 5 km of forest boundary. The JFMC/ VPC/EDC shall be instrumental in mobilization of communities and for implementing equitable access to information rights.

 

Use of Geo-spatial technology in wetland management

 

Remote sensing data in combination with Geographic Information System (GIS) are effective tools for wetland conservation and management. The application encompasses water resource assessment, hydrologic modeling, flood management, reservoir capacity surveys, assessment and monitoring of the environmental impacts of water resources project and water quality mapping and monitoring (Jonna 1999).

 

 

 

Flood zonation mapping

 

Satellite data are used for interpretation and delineation of  flood-inundated regions, flood-risk zones. Temporal data helps us to obtain correct ground information about the status of ongoing conservation projects. IRS 1C/D WIFS data having 180 km spatial resolution and high temporal repetitiveness has helped in delineating the zonation of flooding areas of large river bodies, thus helping in the preparation of state-wise and basin wise flood inventories.

 

Water quality analysis and modeling

 

Remote sensing data is used for the analysis of water quality parameters and modeling. Water quality studies have been done carried out using the relationship between reflectance, suspended solid concentration, and chlorophyll-a concentration. In the near infrared wavelength range, the amount of suspended solids content is directly proportional to the reflectance. Due to spatial and temporal resolution of satellite data information of the source of pollution and the point of discharge, inflow of sewage can be regularly monitored. Using IRS LISS II data (Sasmal & Raju 1996) monitored the suspended load in estuarine waters of Hoogly, West Bengal in a GIS environment. In this study band 4 of the data set was found to show a wider range of digital classes indicating a better response with depth than rest of the bands. Landsat TM and IRS –1A data were used to estimate sediment load in Upper lake, Bhopal (Raju et al. 1993). This study showed high relationship between the satellite as well as ground truth radiometric data and total suspended solids. Different image processing algorithms are also used on Landsat MSS dataset to delineate sediment concentration in reservoirs (Jonna et al. 1989). Qualitative remote sensing methods have been used for real time monitoring of Inland Water quality (Gitelson et al. 1993) Airborne sensor has also been used to study the primary productivity and related parameters of coastal waters and large water bodies (Seshmani et al. 1994).

 

Water resource management

 

With the development of highly precise remote sensing techniques in spatial resolution and GIS, the modeling of watershed has become more physically based and distributed to enumerate interactive hydrological processes considering spatial heterogeneity. A distributed model with SCS curve number method called as Land Use Change (LUC) model was developed (Mohan & Shresta 2000) to assess the hydrological changes due to land use modification. The model developed was applied to Bagmati river catchment in Kathmandu valley basin, Nepal. The study clearly demonstrated that integration of remote sensing, GIS and spatially distributed model provides a powerful tool for assessment of the hydrological changes due to landuse modifications.

 

Mapping of Wetland

 

The Space Application Center (SAC) has mapped the wetlands at 1:250000 scale in the mainland as well the islands using the visual interpretation of coarse resolution satellite data. The states of Sikkim, West Bengal, Goa Punjab, Haryana, Himachal Pradesh, Chandigarh, Delhi, Andaman, Nicobar, Lakshwadeep, Dadra and Nagerhaveli were mapped at 1:50000 scale. However, in the rest of the country, only wetlands of 56.25 ha and above in size could be mapped. It is known that a vast majority of wetlands-often in number, extent and conservation importance is below 50 ha in size (For example, those in the Indo-gangetic plains and in the Deccan peninsula). Thus, the inventory covered only a small number of wetlands: more over, the conservation values are not known for those wetlands even whose inventory has now been obtained. The data merely indicates location of wetlands, the classification of wetlands on 1:250,000 scale is moreover, only geomorphologic in nature (such as Oxbow lakes, Playas, Lakes and Ponds etc.) and has no other factual biological conservation value. By itself, the information will only be partly useful for conservation of wetlands. This estimate is likely to be twice if we include wetlands of size 50 ha or less (Das et al. 1994 for Etwah and Mainpuri districts of U.P.).

 

6. Conclusion

Threats to wetland ecosystems comprise the increasing biotic and abiotic pressures and perils. About 35% of mangroves have been lost over the last two decades, driven primarily by aquaculture development, deforestation, and freshwater diversion. Some 20% of coral reefs were lost and more than a further 20% degraded in the last several decades of the twentieth century through overexploitation, destructive fishing practices, pollution and siltation and changes in storm frequency and intensity. The primary direct driver of the loss and degradation of coastal wetlands, including saltwater marshes, mangroves, seagrass meadows, and coral reefs, has been conversion to other land uses.  In the Indian subcontinent due to rice culture, there has been a loss in the spatial extent of wetlands.  Wetlands in India support around 2400 species and subspecies of birds. But losses in habitat have threatened the diversity of these ecosystems Introduction of exotic species like water hyacinth (Eichornia crassipes) and salvinia (Salvinia molesta) have threatened the wetlands and clogged the waterways competing with the native vegetation.  As many as 700 potential wetlands do not have any data to prioritize. Many of these wetlands are threatened. In monsoonal regions, increased variability risks diminishing wetland biodiversity and prolonged dry periods promote terrestrialisation of wetlands as witnessed in Keoladeo National Park, India. So far as current status of wetland management in India is concerned, Wetlands are not delineated under any specific administrative jurisdiction. The primary responsibility for the management of these ecosystems is in the hands of the Ministry of Environment and Forests. Although some wetlands are protected after the formulation of the Wildlife Protection Act, the others are in grave danger of extinction. Effective coordination between the different ministries, energy, industry, fisheries revenue, agriculture, transport and water resources, is essential for the protection of these ecosystems. The dynamic nature of wetlands necessitates the widespread and consistent use of satellite based remote sensors and low cost, affordable GIS tools for effective management and monitoring.

 

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An exciting young fast bowling prospect, Sohail Tanvir has already hogged the limelight with an unorthodox action. His entry into the Pakistan team came unexpectedly, when Shoaib Akhtar was sent back home from the inaugural World Twenty20. His wrong-footed action often causes a lot of problems for batsmen as it becomes difficult to pick deliveries easily. He also bowls occasional left arm orthodox spin, as established in his second career Test, against India at Kolkata.He impressed everyone with his bowling, and was consequently picked for the series against South Africa and India. Tanvir is also a hard-hitting batsman down the order.

The most striking fact about India’s legal system is the difference between investor protection provided by the law as opposed to protection in practice. Table 2.1 compares India’s scores relative to different legal-origin country groups examined in the law and finance literature (by LLSV and others), and other emerging markets along several dimensions of law and institutions. As discussed above, with the English common-law system, India has strong protection of investors on paper. For example, the scores on both creditor rights (with a score of 4/4 in LLSV (1998), based on the Company’s Act of 1956, to 2/4 in DMS (2005), based on the Sick Industrial Companies Act of 1985) and shareholder rights (5/6) are the highest of any country in the world.

Corruption is a major systemic-problem in many developing countries and is of particular importance for India. Studies by the World Bank (World Development Report 2005) have found that corruption was the number one constraint for firms in South Asia and that the two most corrupt public institutions identified by the respondents in India (as well as in most countries in South Asia) were the police and the judiciary. Based on Transparency International’s Corruption Perception Index, India has a score of 2.9 out of 10 in 2005 (a higher score means less corruption), which ranked 88 out of 140 countries (with the range being 1.5 to 9.7), and the ranking relative to other countries has not improved much over the past ten years.

Next, we have two measures for the quality of accounting systems. The disclosure requirements index (from 0 to 1, higher score means more disclosure; LLS 2006) measures the extent to which listed firms have to disclose their ownership structure, business operations and corporate governance mechanisms to legal authorities and the public. India’s score of 0.92 is higher than the averages of all LLSV subgroups of countries, including the English origin countries, suggesting that Indian firms must disclose a large amount of information. However, this does not imply the quality of disclosure is also good. In terms of the degree of earnings management (higher score means more earnings management; Leuz, Nanda, and Wysocki 2003), India’s score is much higher than the average of English origin countries, and is only lower than the German origin countries, suggesting that investors have a difficult time in evaluating Indian companies based on publicly available reports. It seems that while Indian companies produce copious amounts of data, form triumphs over substance in disclosure and with an accounting system that allows considerable flexibility, there is enough room for companies to hide or disguise the truth.

The efficiency and effectiveness of the legal system is of primary importance for contract enforcement, and we have two measures. First, according to the legal formalism (DLLS 2003) index, India has a higher formalism index than the average of English origin countries, and is only lower than that of the French origin countries. The legality index, a composite measure of the effectiveness of a country’s legal institutions, is based on the weighted average of five categories of the quality of legal institutions and government in the country (Berkowitz, Pistor, and Richard 2003). Consistent with other measures, India’s score is lower than the averages of all the subgroups of LLSV countries, suggesting that India’s legal institutions are less effective than those of many countries, and that it will be more difficult; for India to adopt and enforce new legal rules and regulations than other countries.

Finally, as for the business environment in India, a recent World Bank survey
found that, among the top ten obstacles to Indian businesses, the three which the firms
surveyed considered to be a “major” or “very severe” obstacle and exceeding the world average are corruption (the most important problem), availability of electricity, and labor regulations. Threat of nationalization or direct government intervention in business is no longer a major issue in India. With rampant tax evasion, the shadow economy in India is significant. It is estimated to be about 23% of GDP. Creditor and investor rights were largely unprotected in practice, with banks having little bargaining power against willful defaulters. Large corporate houses often got away with default, or got poor projects financed through the state-owned banking sector, often by using connections with influential politicians and bureaucrats.

Since the beginning of liberalization in 1991, two major improvements have taken place in the area of creditor rights protection – the establishment of the quasi-legal Debt Recovery Tribunals that have reduced delinquency and consequently lending rates (Visaria (2005)); and the passing of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act in 2002 and the subsequent Enforcement of Security Interest and Recovery of Debts Laws (Amendment) Act in 2004. These laws have paved the way for the establishment of Asset Reconstruction Companies and allow banks and financial institutions to act decisively against defaulting borrowers. In recent years,-recovery has shown significant improvement, presumably because, at least in part, of a well-performing economy (Table 2.1).

2.1. Comparison of Legal Systems: India, Country Groups and Major Emerging Economics*

Creditor

Rights

Anti-director

Rights

Corruption Perception Index

Legal Formalism

Index

Legality

Index

Disclosure

Requirement

Earnings

Managem Score

India

2

5

3.3

3.51

11.35

0.92

19.1

English-origin Ave.

2.28

4.19

5.33

3.02

15.56

0.78

11.69

French-origin Ave.

1.31

2.91

4.39

4.38

13.11

0.45

19.27

German-origin Ave.

2.33

3.04

5.58

3.57

15.53

0.60

23.60

Nordic-origin Ave.

1.75

3.80

9.34

3.32

16.42

0.56

10.15

LLSV Sample Ave.

1.828

3.3729

5.24

3.5830

14.98

0.6031

16.00

China (G)

2

1

3.3

3.40

N/a

N/a

N/a

Pakistan (E)

1

4

2.2

3.74

8.27

0.58

17.8

S. Africa (E)

3

5

4.6

3.68

11.95

0.83

5.6

Argentina (F)

1

2

2.9

5.49

10.31

0.50

N/a

Brazil (F)

1

5

3.3

3.83

11.43

0.25

N/a

Mexico (F)

0

3

3.3

4.82

10.79

0.58

N/a

Malaysia (E)

3

5

5

3.21

13.82

0.92

14.8

Sri Lanka (E)

2

4

3.1

3.89

9.68

0.75

N/a

Thailand(E)

2

4

3.6

4.25

10.70

0.92

18.3

Egypt (F)

2

3

3.3

3.60

10.14

0.50

N/a

Indonesia(F)

2

4

2.4

3.88

8.37

0.50

18.3

Peru(F)

0

3.5

3.3

5.42

9.13

0.33

N/a

Philippines (F)

1

4

2.5

5.00

7.91

0.83

8.8

Turkey (F)

2

3

3.8

3.49

9.88

0.50

N/a

Korea (South )(G)

3

4.5

5.1

3.33

12.24

0.75

26.8

Taiwan (G)

2

3

5.9

3.04

14.26

0.75

22.5

Average of EM

1.69

3.63

3.60

4.00

10.59

0.63

16.61

Source of EM

* Including all emerging economies from Table 1 for which information was available. Notation (E), (F), or (G) against a country indicates that the said country belongs to English, Fresh or German legal origin groups.

28 : DMS average 30 : DLLS (2003) average

29 : DLLS (2007) average 31 : LSS (2006) average

To summarize, despite strong protection provided by the law, legal protection is considerably weakened in practice due to an inefficient judicial system, characterized by overburdened courts, slow judicial process, and widespread corruption within the legal system and government. While the need for judicial and legal reforms has long been recognized, little legislative action has actually taken place so far (Debroy (2000)). Currently, the government is trying to emulate the success of China by following the Special Economic Zone approach rather than overhauling the entire legal system.

Financial/Business Laws and Regulations in India

Red tape and regulations still rank among the leading deterrents for business and foreign investment in India leading to its latest ranking of 116 out of 155 in the World Bank’s Ease of Doing Business indicator in 2006 (World Bank, 2006). India features consistently in the second half of the sample for all aspects of business regulation (and is out of the top 100 for most aspects) except for investor protection. To start a business in India entrepreneurs have close to twice the number of procedures to follow as in OECD countries, about three and a half times the time delay and close to nine times the cost (as a proportion of per capita income). Delays and costs of dealing with licenses in India is roughly in corresponding proportions with their respective OECD values. Very recently (second half of August 2007), the Government of India has decided to improve this situation and has announced a drastic reduction in the number of approvals and permits necessary to start new business. Whether and when this translates to actual practice is yet to be seen.

It is almost twice as hard to hire people in India as in OECD countries and almost three times as hard and costly to fire them. With have considerable variation in their labor laws across states, Besley and Burgess (2004) show that during the three and half decades before liberalization began in 1991, Indian states that followed more pro-worker policies experienced lower output, investment, employment and productivity in the registered or “formal” sector and higher urban poverty with an increase in informal sector output.

In the area of credit availability, India lags behind not because of creditors’ rights (which is close to OECD standards) but because of the paucity of credit quality information through the use of public registry or coverage of private bureaus. However, India’s excellent investor protection provisions in the law should be viewed together with her performance in contract enforcement where the number of procedures and time delays are about double that in OECD countries and the costs of contract enforcement over four times that in OECD countries.

As for securities markets regulation, using the framework of La Porta et al (2006) that focuses on disclosure and liability requirements as well as the quality of public enforcement of the regulations controlling securities markets, India scores 0.92 in the index of disclosure requirements third highest after the United States and Singapore. As for liability standard, India’s score is the fifth highest, 0.66 while the sample mean is 0.47. In terms of the quality of public enforcement, i.e. the nature and powers of the supervisory authority, the Securities and Exchanges Board of India (SEBI), India scores 0.67, higher than the overall sample mean as well as the English-origin average of 0.52 and 0.62 respectively and ranks 14th in the sample.

In comparing the regulatory powers and performance of SEBI with those of the SEC (Securities and Exchanges, Commission) in the USA, Bose (2005) concludes that while the scope of Indian securities laws, are quite pervasive, there are significant problems in enforcing compliance, particularly in the areas like price manipulation and insider trading. Between 1999 and 2004, Bose finds that SEBI took action in 481 cases as opposed to 2,789 cases for the SEC even though the latter regulates a significantly more mature market. As a ratio of actions taken to the number of companies under their respective jurisdictions, SEBI’s figure comes out to be an unimpressive 0.09 while that of the SEC is 0.52. Also the ratio for action taken to investigations made is quite low for SEBI (e.g. 1 out of 24 cases of issue related manipulation in 1996-97, 7 out of 27 in the 5 year period 1999-2004). As for appeals before higher authorities – the Securities Appellate Tribunal (SAT) or the Finance Ministry – in 30 to 50% of cases, the decision goes against SEBI. Though SEBI has had some success prosecuting intermediaries, it has failed to convince the SAT in its proceedings against corporate insiders and major market players. Thus the quality of public enforcement of securities laws appears to be a problem in India.

The institution of Debt Recovery Tribunals (DRTs) in the early 90′s and the
passing of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act in 2002 were aimed at remedying the slowness of the judicial process. The SARFAESI Act paves the way for the establishment of Asset Reconstruction Companies (ARCs) that can take the Non-Performing Assets (NPAs) off the balance sheets of banks and recover them. Operations of these ARCs would be restricted to asset reconstruction and securitizatipn only. It also allows banks and financial institutions to directly seize assets of a defaulting borrower who defaults fails to respond within 60 days of a notice. Borrowers can appeal to DRTs only after the assets are seized and the Act allows the sale of seized assets. The SARFAESI Act itself, however, does not provide a final solution to the recovery problems. With the borrower’s right to approach the DRT, the DRAT (Debt Recovery Appellate Tribunal) and, in some cases, even a High Court, a case can easily be dragged for three to four years during which time the sale of the seized asset cannot take place. It is perhaps too soon to evaluate its effects on reducing defaults but, public sector banks have had some success recovering their loans by seizing and selling assets since the Act came into existence. The recovery rates of bad debts have registered a sharp rise in 2005-06, but it is difficult to separate the contribution of the booming economy to this from that of the improvement in corporate governance.

Another positive development in the area of disclosure has been the adoption of Accounting Standards (AS) 18 by the Institute of Chartered Accountants in India (ICAI) in 2001 which, among other things, makes reporting of “related party transactions” by Indian companies mandatory. Related parties include holding and subsidiary companies, key management personnel and their direct relatives, “parties with control exist” which includes joint ventures and fellow subsidiaries; and other parties like promoters and employee trusts. Transactions include purchase/sale of goods and assets, borrowing, lending and leasing, hiring and agency arrangements, guarantee agreements, transfer of research and development and management contracts. This step has gone a long way in bringing transparency to the dealings of Indian companies, particularly the group-affiliates.

The area of the Ease of Doing Business index where India fares worst is undoubtedly that of closing a business. India has the dubious distinction of being among the countries where it takes the longest time to go through bankruptcy in the world (10 years on an average). Consequently recovery rates are very low too – below 13% as opposed to about 74% in OECD countries. Kang and Naya’r (2004) point out that there is no single comprehensive and integrated policy on corporate bankruptcy in India in the lines of Chapter 11 or Chapter 7 US bankruptcy code. Overlapping jurisdictions of the High Courts, the Company Law Board, the Board for Industrial and Financial Reconstruction (BIFR) and the Debt Recovery Tribunals (DRTs) contribute to the costs and delays of bankruptcy. The Companies (Second Amendment) Act, 2002 seeks to address these problems by establishing a National Company Law Tribunal and stipulating a time-bound rehabilitation or liquidation process to within less than two years as well as bringing about other positive changes in the bankruptcy code.

Stock Exchanges in India

India currently has two major stock exchanges: the National Stock Exchange (NSE) established in 1994 and the Bombay Stock Exchange (BSE), the oldest stock exchange in Asia, established in 1875. Up to 1992, BSE was a monopoly, marked with inefficiencies, high costs of intermediation, and manipulative, practices, so that external market users often found themselves disadvantaged. The economics reforms created four new institutions: the Securities and Exchanges: Board of India (SEBI), the National Stock Exchange (NSE), the National Securities Clearing, Corporation (NSCC), and the National Securities Depository (NSDL). The National Stock Exchange (NSE), a limited liability company owned by public sector financial institutions, now accounts for about two-thirds of the stock exchange trading in India, and virtually all of its derivatives trading.

The National Securities Clearing Corporation (NSCC) is the legal counter-party to net obligations of each brokerage firm, and thereby eliminates counter-party risk and possibility of payments crises. It follows a rigorous ‘risk containment’ framework involving collateral and intra-day monitoring. The NSCC, duly assisted by the National Securities Depository (NSDL), has an excellent record of reliable settlement schedules since its inception in the mid-nineties.

The Securities and Exchanges Board of India (SEBI) has introduced a rigorous regulatory regime to ensure fairness, transparency and good practice. For example, for greater transparency, SEBI has mandated mandatory disclosure for all transactions where total quantity of shares is more than 0.5% of the equity of the company. Brokers disclose to the stock exchange, immediately after trade execution, the name of the client in addition to trade details; and the Stock exchange disseminates the information to the general public on the same day.

The new environment of transparency, fairness and efficient regulation led BSE, in 1996, to also become a transparent electronic limit order book market with an efficient trading system similar to the NSE. Equity and equity derivatives trading in India has sky­rocketed to record levels over the course of the last ten years.

In 2005, about 5000 companies were listed and traded on NSE and/or BSE. While the dollar value of trading on the Indian stock exchanges is much lower than the dollar value of trading in Europe or in the US, it is important to note that the number of equity trades on BSE/NSE is ten times greater than that of Euronext or London, and of the same order of magnitude as that of NASDAQ/NYSE. Similarly, the number of derivatives trades on NSE is several times greater than that of Euronext/ London, and of an order of magnitude comparable to US derivatives exchanges. The number of trades is an important indicator of the extent of investor interest and investor participation in equities and equity trading, and emphasizes the crucial importance of corporate governance practices in India.

Enforcing Corporate Governance Laws

Enforcement of corporate laws remains’ the soft underbelly of the legal and corporate governance system in India. The World Bank’s Reports on the Observance of Standards and Codes (ROSC) in its 2004 report on India (World Bank (2004)) found that while India observed or largely observed most of the principles, it could do better in areas like the contribution of nominee directors from financial institutions to monitoring and supervising management; the enforcement of certain laws and regulations like those pertaining to stock listing in major exchanges and insider trading as well as in dealing with violations of the Companies Act – the backbone of the corporate governance system in India. Some of the problems arise because of unsettled questions about jurisdiction issues and powers of the SEBI.

Indian Courts-an assessment

Djankov et al (2003) (DLLS) in. their analysis of “formalism” in the judicial process around the world, gave India a score of 3.34 on its formalism index, higher than the English-origin average of 2.76 but slightly lower than the average for all countries, 3.53. Among the 42 English-origin countries in their sample, India has the 11th highest level of formalism. India has the 16th longest process of evicting a tenant (212 days) among English common law origin countries (average 199 days). For collection on a bounced check, however, India has the 16th shortest duration (106 days) among English common law origin countries (average 176 days). In both cases India’s total duration of the process is significantly shorter than the overall mean duration of all the 109 countries considered (254 for eviction of tenant and 234 for collecting on bounced check). Thus, in spite of its formalism, Indian courts do not seem to perform that poorly (relatively speaking) on these two types of eases considered.

The DLLS assurance notwithstanding, case arrears and decade-long legal battles are commonplace in India. In spite of having around 10,000 courts (not counting tribunals and special courts), India has a serious, shortfall of judicial service. While the USA has 107 judges per million citizens, Canada over 75, Britain over 50 and Australia over 41, for India the figure is slightly over 10, (Debroy (1999)). In April 2003, for instance, the Supreme Court of India had close to 25,000 cases pending before it (Parekh 2001). Hazra and Micevska (2004) report that there are about 20 million cases pending in lower courts and another 3.2 million cases in high courts. A termination dispute contested all the way can take up to 20 years for disposal. Writ petitions in high courts can take between 8 and 20 years for disposal. About 63% of pending civil cases are over a year old and 31% are over 3 years old. Automatic appeals, extensive litigation by the government, underdeveloped alternative mechanisms of dispute resolution like arbitration, the shortfall of judges all contribute to this unenviable state of affairs in Indian courts. Since the same courts try both civil and criminal matters and the latter gets priority, economic disputes suffer even greater delays.

The Small and Medium Enterprises (SME) sector in India

Allen et al (2006) conduct surveys to study the extent to which the formal legal environment directly supports and regulates businesses, particularly small and medium enterprises which form an increasingly important part of the Indian industry. This seems to indicate that the small firms sector operate in a system virtually governed through informal mechanisms based on trust, reciprocity and reputation with little recourse to the legal system and deals with widespread corruption.

Over 80% of the firms surveyed needed a license to start a business, and for about half of them obtaining it was a difficult process. Government officials were most often the problem solved usually through payment of bribes or friends of government officials to negotiate. Clearly, networks and connections are of crucial importance in negotiating the government bureaucracy.

As for conducting day-to-day business, legal concerns are far less important to

them than the unwritten codes of the informal networks in which firms operate. In cases of default and breach of contract, the primary concern is loss of reputation, followed closely by loss of property, with the fear of legal consequences being-the least important concern.

About half of the firms surveyed did not have, a regular legal adviser and less than half of those that did had lawyers in that capacity. For mediation in a business dispute or to enforce a contract, the first choice was “mutual friends or business partners”. Only 20% of the respondents mentioned going to courts as the first option indicating that the legal system, while not as effective as the informal mechanisms, is not altogether absent.

The informal system, however, is not perfect in resolving disputes and has its costs. About half of the respondents experienced a breach of contract or, non-payment with a supplier or major customer in the past three years. Over a third of them renegotiated while over 40% did nothing but continued the business relationships with the offending parties.

In general, the business environment of the SME sector is marked by strong informal mechanisms like family ties, reputation and trust. Legal remedies though present, are far less important than the rules of the informal networks.

References

Allen, F., R. Chakrabarti, S. De, J. Qian and M. Qian, 2006, “Financing Firms in India”, Working paper, The Wharton School.

Bose, Suchismita and Dipankar Coondoo, 2004, ‘The Impact of FII Regulations in India’, Money and Finance, July-December.

Bose, Suchismita, 2005. “Securities Markets Regulation: Lessons from US and Indian Experience”, Money and Finance, Jan-June, 83-124.

Besley, Timothy and Robin Burgess, 2004, “Can Labor Regulation Hinder Economic Performance? Evidence from India” Quarterly Journal of Economics.

Debroy, Bibek, 1999, “Some Issues in Law Reform in India”, in Jean-Jacques Dethier ed. Governance, decentralization, and reform in China, India, and Russia,. Boston; Kluwer Academic Publishers.

Djankov, Simeon, Rafael La Porta, Florencio Lopez-de-Silanes, and Andrei Shleifer, 2002. “The Regulation of Entry,” Quarterly Journal of Economics, “Courts,” Quarterly Journal of Economics, 118 (2), 453-517.

Hazra, Arnab K. and Maja Micevska, 2004, “The Problem of Court Congestion: Evidence from Indian Lower Courts”, Working Paper, University of Bonn.

Kang, Nimrit and Nitin Nayar, 2004, “The Evolution of Corporate Bankruptcy Law in India”, Money and Finance, Oct 03 – Mar 04.