All Newspaper editorials in one place – January 19, 2024

by | Jan 19, 2024 | Current Affairs & GK Question Answers | 0 comments

 

All Newspaper editorials in one place – January 19, 2024

 

 
 

THE HINDU

January 19, 2024

Motivated litigation

Courts should not allow suits that seek to convert places of worship

 

In staying the execution of an Allahabad High Court order to appoint a commissioner to inspect the Shahi Idgah Mosque in Mathura, the Supreme Court has stalled for a while a likely move to get the status of the place of worship altered through the courts. The top court has halted the appointment of the commission after finding it was sought on vague grounds without any particular reason. It has also taken into account a recent precedent in which the Supreme Court has ruled that civil courts should not grant any interim relief if there is a question about the maintainability of the suit or if the suit is barred by law. The committee of management of the Shahi Idgah Mosque has questioned the maintainability of the suit in the name of the deity, Bhagwan Sri Krishna Virajman, and other Hindu worshippers on the ground that it is barred by the Places of Worship (Special Provisions) Act, 1991, which prohibits the conversion of the religious character of any place of worship as it was on August 15, 1947. It also bars any fresh suit aimed at altering the status of a place of worship. Hindu devotees have been claiming that the mosque, located adjacent to a Krishna temple there, is standing on the birthplace of Lord Krishna. Several suits are pending in connection with the mosque in Mathura and the Allahabad High Court has transferred all the suits to itself for disposal.

 

The appointment of a commission to inspect the premises appeared to be an exercise to show that architectural features and artefacts of Hindu provenance could be found. The legal strategy is similar to the one through which Hindu worshippers obtained official sanction for gathering purported evidence to back their case at the Gyanvapi Mosque, Varanasi, where the Archaeological Survey of India (ASI) has been asked to do a scientific survey. The Mathura dispute, however, was settled through a compromise between the Sri Krishna Janmasthan Seva Sansthan and the Shahi Idgah Trust in 1968, and implemented through a decree in 1973. As part of the settlement, the Sansthan had given up a portion of the land to the Idgah. The current suits challenge this compromise as ‘fraudulent’ and seek the transfer of the entire parcel of land to the deity. The use of the judiciary to make a concerted attack on Muslim places of worship by claiming that they were built on structures of Hindu origin has become an unfortunately regular feature. Courts must be wary of encouraging such motivated litigation, and determine at the earliest stage whether such suits are maintainable in view of the statutory bar in the 1991 Act.

 

 

 
 

THE HINDU

January 19, 2024

Smaller citizens

Despite rising enrolment, gaps in India’s education system are not closing quickly

 

The pandemic was difficult for India’s youngest citizens, the children, but the true import of its impact is coming to light now. The Annual Status of Education Report, titled “ASER 2023: Beyond Basics” and released on Wednesday, a survey by the civil society organisation Pratham among rural students aged 14 to 18, reveals that more than half struggled with basic mathematics, a skill they should have mastered in Classes 3 and 4. The household survey, the first field-based one in four years, was conducted in 28 districts across 26 States and assessed the foundational reading and arithmetic abilities of 34,745 students. In other findings, about 25% of this age group cannot read a Class 2 level text in their mother tongue; boys are, however, better in arithmetic and English reading skills than girls. Overall, 86.8% in the 14-18 year age group are enrolled in an educational institution, but there are gaps as they grow older — while 3.9% of 14-year-olds are not in school, the figure climbs to 32.6% for 18-year-olds. Also, for Class 11 and higher, most students opt for Humanities; while girls are less likely to be enrolled in the science stream (28.1%) compared with boys (36.3%), only 5.6% have opted for vocational training or other related courses.

 

The proportion of children opting for private tuition nationwide went up from 25% in 2018 to 30% in 2022. Close to 90% of the youngsters surveyed have a smartphone and know how to use it, though many are unaware of online safety settings. The trends, especially the lag in reading and solving simple arithmetic, give an inkling of what ails the education system, and the corrective measures required. The National Education Policy 2020 says the top priority is to “achieve universal foundational literacy and numeracy in primary school by 2025”. The report says all States have made a major push in foundational literacy and numeracy under the NIPUN Bharat Mission, but the numbers show that in a diverse and vast country such as India, there is a lot of catching up to do. While rising enrolment is a good thing, what awaits the students after they finish the compulsory school cycle (Class 8) is not all that rosy, sometimes because they are simply not able to cope with the ambitious curriculum set for the higher secondary level. The Right to Education Act, 2009 may have ensured universal access to education, but there is many a gap to fill before it touches every child in the true spirit of the legislation.

 

 

 
 

THE INDIAN EXPRESS

January 19, 2024

STEP BACK

Tehran and Islamabad must ensure that crisis does not escalate. In long run, issues of minority rights will need to be addressed

 

The complex relationship between Iran and Pakistan is teetering on the edge. On Tuesday, Iran carried out strikes in Pakistan’s Balochistan province — its aircraft reportedly crossed into Pakistani air space — ostensibly to target Jaish al-Adl, a Sunni group that has carried out attacks within Iran. Pakistan has claimed that two minors died in the attack. Islamabad’s first reaction was diplomatic: It recalled its ambassador from Tehran, registered a protest with the Iranian Ministry of Foreign Affairs and suspended bilateral visits. On Thursday, Pakistan launched its own strikes in Iran’s Sistan-Baluchestan province, claiming to target “Pakistan-origin terrorists” who have bases in Iran. Neither Iran nor Pakistan can afford an escalation of this conflict. The former is already involved in multiple proxy wars in West Asia, not least the Israel-Hamas conflict. Pakistan has volatile and militarised borders with India and Afghanistan, and is mired in deep economic crisis.

 

Pakistan and Iran are Islamic republics yet in both countries Muslim minorities at the so-called periphery have not found adequate representation or equal rights. The Balochistan region (the province in Pakistan that is the country’s largest) has a large area and a sparse population. Among the Baloch people, while there is a broad cultural and linguistic affinity, there are also significant internal differences — of sect, class and tribe. The community has often been treated with suspicion and outright discrimination by both states. This has been taken advantage of by violent separatist groups as well as external actors. The former has used the frontier regions of each country against the other. Both Tehran and Islamabad have often accused each other of providing tacit support to — or at the very least, of not doing enough to counter — these violent groups. Jaish al-Adl is one of several Sunni-Salafist outfits fighting for an independent Sistan-Baluchestan said to operate from Pakistan. The group has claimed responsibility for bombings and attacks on Iran’s border police in the past. Last year, there were several attacks on both sides of the border in which security forces were killed.

 

The immediate trigger for Iran’s audacious attack remains unclear. Given the regional context — it carried out similar strikes in Syria and Iraq earlier this week — the action against Pakistan could be part of a larger muscle-flexing in light of the Israel-Hamas war spreading to other parts of West Asia. There has also been a reported increase in Jaish al-Adl activity recently. Whatever the provocations, it is now imperative for both sides to act with maturity. Pakistan’s Foreign Office has said that the sole objective of the attack was protecting the country’s security while the Army has said that “dialogue and cooperation” can solve bilateral issues. Beyond the current moment, governments and armies need to cease their support for terrorism. In the long run, addressing the concerns of disaffected minorities in the region will help tackle the challenge posed by violent separatist movements.

 

 
 
THE INDIAN EXPRESS

January 19, 2024

UNQUIET MANIPUR

Continuing violence points to a lack of political will, and obduracy in failing to acknowledge that more needs to be done

 

Recurring instances of violence in Manipur point to the obvious — the unrest that erupted in the state last year in May is far from over. This week alone, a mob targeted the 3rd Indian Reserve Battalion in Khangabok, Thoubal; Thoubal Police Headquarters was also attacked. Though authorities managed to repel the mobs in both instances, three BSF personnel were injured. In Moreh, a beleaguered border town, an Indian Reserve Battalion jawan and a havildar on deputation with the Manipur police commandos were killed and two others injured. The state’s Home Department Commissioner has put in a request with the Home Ministry requesting “air assets” in Imphal to meet with similar emergency situations.

 

These instances, only the latest in a dismal series, highlight how eight months into the ethnic conflict, the state government is yet to step up to its challenge. The attacks on security personnel are disturbing on multiple counts. After the initial inertia, the state has seen a larger deployment of security forces, including the Army and paramilitary forces, to bring the situation under control. Yet, accusations of partisanship are rife on the ground, posing hurdles in their way. Despite the Army chief’s recent assertion of growing stability in the state, violence against the security forces also highlights that force alone cannot tame a situation that requires sensitivity and compassion in equal measure. The instability in Myanmar, where Arakan insurgents claim to have taken control of Paletwa town in Chin state, that lies close to Myanmar’s border with India and Bangladesh, is a troubling development, compounded by the fact that of the estimated 4,500-odd arms looted from state police armouries in Manipur in the early days of the ethnic clash, only about 30 per cent have been recovered so far. This means that unaccounted-for arms remain in circulation in a state where borders and buffer zones have deepened along ethnic lines between the hill and valley people and where each feels distrust for the other and for those meant to govern and protect them.

 

In June last year, Home Minister Amit Shah had announced the formation of a peace committee, with representatives from different ethnicities, political parties and civil society, to begin the process of healing. The committee ran into internal differences soon after and is yet to meet. In the unending season of anger and grief in the state, this shows both a lack of will and an obduracy in failing to acknowledge that far more needs to be done.

 

 

 
 

THE INDIAN EXPRESS

January 19, 2024

DOUBLY SUPER

What elevates the Super Over experience is a fresh start to the game, erasing all that has gone before

 

Super Overs are cricket’s version of watching a bomb-disposal specialist at work in a movie. Tick, tick… Perhaps, like the potential of the wrong wire being snapped off in the scene, it’s the fact that a batting team can lose two wickets and the game can end right there that makes a Super Over different from the last over of a chase in the regular playtime. What’s the ultimate high? The second Super Over, of course.

 

Like it was, late into Wednesday night, when India’s Ravi Bishnoi defended 11 runs by taking out two wickets in three balls to break the hearts of Afghanistan. There is also the drama of the wait after the end of regulation time, watching the decisions of the two captains in choosing their personnel. Like Rohit chose Ravi Bishnoi to bowl in the second Super Over. Or how he opted to retire and get in the faster runner, Rinku Singh, instead, in the last ball of the first Super Over; a successful decision as Rinku hared across to steal a single after the ball had been squeezed behind to the wicketkeeper. Without that, though there is an ongoing debate about how the umpires handled that rule, there wouldn’t have been the second Super Over.

 

What elevates the Super Over experience is a fresh start to the game, erasing all the sins and virtues thus far. Three best batsmen (potentially) vs the best bowler with six legal balls in hand — unlike the final over of the chase in normal time where often the best batsman or best bowler may not be there. Unlike football’s penalty shootouts, where the game is stripped of its beautiful team nuances and zooms into a striker and a goalkeeper, nothing is reduced in cricket. Even players like Jasprit Bumrah and Kagiso Rabada who have delivered match-winning Super Over performances have talked about how it’s different from the last over in normal time. For the fans, too, it is that much more riveting.

 

 

 
 

THE TIMES OF INDIA

January 19, 2024

Chess With Bombs

A short attempt to explain the infernally complex & deadly chessboard of West Asia

 

Tensions in West Asia turned up a notch with Pakistan attacking alleged Baloch separatists inside Iran. This comes after Iran earlier this week attacked Sunni militant group Jaish al-Adl in Pakistan’s Balochistan. Tehran also launched missile strikes against what it says was an Israeli espionage centre in Iraqi Kurdistan and Islamic State terror bases in Syria. These may lead to a larger regional conflagration.

 

Balochistan to Levant | The latest strikes show that the entire region from Pakistan’s border through the Arabian Sea up till Gaza is now a zone of various degrees of conflict. What started with the Israel-Hamas war has spread with Houthi attacks on Red Sea shipping and low-level transnational strikes by the principal actors.

 

The standoff | Each principal actor has at least two strategic guns pointing at the other. Israel at Iran through Azerbaijan and Iraqi Kurdistan. Iran at Israel through Hamas and Hezbollah. Iran at Saudi Arabia through Iraqi militias and Houthis. And Saudi Arabia at Iran through Pakistan and Taliban. Most of these proxies have been activated since the Gaza war.

 

Free for all | Iran-linked Iraqi militias have targeted US bases in Iraq and Syria over 130 times in the past three months. US has hit back at these Iran proxies, just as it is now targeting Houthis in Yemen. Meanwhile, Israel was blamed by Iran of assassinating a top IRGC commander, Sayyed Razi Mousavi, in Syria. Tehran earlier this month also faced the Kerman bombings, which were claimed by IS and killed more than 100. Plus, an attack in its city of Rask in December killed 12 and was claimed by Pakistan-based Jaish al-Adl. Therefore, Iran’s latest strikes appear to continue the tit-for-tat pattern.

 

Ayatollahs under pressure | It’s possible that Tehran was under pressure to act. The massive anti-hijab protests in Iran mean the regime has to satisfy its conservative supporters. And those supporters would have wanted Tehran to directly hit Israel-US-Saudi proxies. Iran, however, has avoided direct confrontation with US or Israel. But its actions will boost its own regional proxies in the ‘Axis of Resistance’.

 

Pakistan equation | Pakistan too would not want to escalate matters. Its strikes in Iranian territory somewhat mirror what it did after India’s Balakot strikes in 2019 to shore up the image of Pakistani army. Interestingly, India has expressed “understanding” of Iran’s strikes against Pakistan. But given the complex West Asian chessboard, New Delhi should play carefully.

 

 

 
 

THE TIMES OF INDIA

January 19, 2024

Taught, But Thought?

Latest survey of rural education again shows India’s demographic advantage isn’t a sure thing

 

ASER (Annual Status of Education Report), which provides a snapshot of schooling in rural India, focused on children in the 14-18 age bracket for its 2023 edition. In India, this is the secondary stage. ASER 2023’s highlight is that rural schooling has largely overcome the dropout problem but hasn’t yet dealt with the task of improving foundational skills.

 

Mixed bag | In 2023, the sample showed that 84% of rural children have finished at least eight years of schooling. When compared to a similar ASER survey in 2017, the results on foundational skills are mixed. In 2023, youth who could read a standard II level text had dropped by three percentage points to 73.6%. In arithmetic, there was a four percentage point improvement to 43.3%.

 

Gender disparity | Across tasks, boys outperformed girls. The reason appears to lie in social structures that determine access. To illustrate, smartphone penetration has grown tremendously, and 45-50% of youth reported using them to watch study-related videos. But there’s a sharp disparity in ownership of smartphones. Among boys, 44% of those who can use a smartphone own one. In the case of girls, only 20% have their own smartphone.

 

Downside of a weak base | Shaky foundations leave youth ill-equipped to put their education to use in real life situations and, thereby, in the job market. For example, only 11% of the youth who were able to perform a basic arithmetic test such as subtraction could work out repayment on a bank loan.

 

Smartphones have potential | 89% of the sampled youth have a smartphone at home. For both governments and other organisations, it’s an effective way to creatively reach out to students and improve their foundational skills. Without a sound base, there’s a demographic nightmare ahead.

 

 

 
 

THE ECONOMIC TIMES

January 19, 2024

World Comes Huffing To Indian Markets

Nifty tech sub-index also being affected

 

Indian equities added to global financial turbulence this week with the country’s largest private lender, HDFC Bank, reporting sluggish growth in deposits. This contributed to uncertainty over anticipated interest rate cuts by the US Federal Reserve, causing heavy selling by FPIs on Indian bourses. Pressure on bank earnings is likely to endure with credit-led consumption slowing down and deposit rates yet to catch up with the steep rise in RBI’s policy rate. Bank deposit growth is the quickest in the last six years. But it has not matched the surge in credit growth. With the central bank keeping a lid on liquidity in the financial system, banks are finding it difficult to crank up deposits without affecting margins. RBI has not provided any indication on how long policy interest rates will continue to remain at their current levels before they begin to dip, making investors skittish about their holdings in Indian banks.

 

The Nifty bank and financial services sub-indices are driving the fall in the headline index. Given their weight in Nifty, the effects are considerable. The Nifty technology sub-index is also being affected by fears of a longer credit squeeze in the US as consumer spending remains stronger than expectations. This is part of the heightened volatility in global markets that have run up in anticipation of a soft landing of the US economy.

 

The Indian equity market is correcting to the possibility of further internal and external consumption demand compression. Domestic consumption is poised to yield the baton to investment crowded in by government capital expenditure. The outlook for Indian IT exports has been subdued for several quarters, slowing down hiring in a key industry. The HDFC Bank counter and IT stocks have been longtime favourites of FPIs, and their jitteriness could be infectious. However, Indian investors may be more sanguine and arrest the fallout of capital flight as they did during the pandemic and the Russia-Ukraine conflict and ensuing Western sanctions.

 

 

 

 
 

THE ECONOMIC TIMES

January 19, 2024

West Asia Gets Too Close for Comfort

 

Iran conducted a missile attack on Pakistani soil on Wednesday. Pakistan conducted a missile attack on Iranian soil on Thursday. This attack-counterattack ostensibly targeting local terror camps pours fuel on an already crackling West Asian fire that the Israel-Gaza conflict continues to be. All one needs now is a ‘new’ conflict. Bringing as it does the conflagration(s) closer home, India needs to step up engagement to contain conflict and develop consensus action to tackle terrorism and act against countries that allow their territory to be used by terror groups.

 

Following Iran’s missile strike, India had categorically stated that the attack was a bilateral matter between Tehran and Islamabad, while reiterating its zero-tolerance of terrorism and the right of countries to take action in self-defence. What has become clear is the complexity of the conflicts in West Asia and its potential to become a wildfire. This is also Iran-Pakistan/ Shia-Sunni ‘differences’ coming out in the open. Iran may be propelled by anti-Western sentiments. But it is unclear how opening another theatre of conflict would benefit its cause. China, which brokered the historic peace between Iran and Saudi Arabia, is missing from any engagement. Nor has Beijing said anything so far to the tu-tu mein-mein. Current conflicts in West Asia and the US-Britain’s focus on pursuing Iran suit China. It forces the US to take its eyes off the Indo-Pacific theatre.

 

India has made its position clear. But the need now is to impress its Western partners to consider the web of complexities and interests that support terror activities and outfits in the region. Easy classification — ‘Iran is bad, Pakistan is useful’ still being the default position — won’t yield results.

 

 
 

THE HINDU BUSINESSLINE

January 19, 2024

Not so poor

NITI poverty paper heartening, but raises questions

 

Whatever cynics might say, there is cause to take heart from the NITI Aayog’s recently released discussion paper on reduction in multi-dimensional poverty (MDP) in the country over nine years ending FY23. The paper, which defines MDP in terms of 12 indices encompassing education, health and living standards (three, three and six metrics, respectively, in each category), says that poverty so defined has fallen from 29.17 per cent of the population in FY14 to 11.28 per cent in FY23, with the poorer states – Bihar, Uttar Pradesh, Madhya Pradesh and Rajasthan – doing particularly well.

 

As a result, regional disparities have narrowed. The total number of people having ‘escaped’ MDP has been estimated at 24.82 crore. Odisha and Chhattisgarh have done just as well. The MDP indices have been derived from three National Family Health Surveys (2005-06, 2015-16 and 2019-21), with backward and forward projections for the remaining years based on the observed rates of reduction. The improvements, all-India, have been most impressive (since 2005-06, and markedly after 2015-16) in the areas of bank account addition, assets, school attendance, access to electricity and drinking water. Access to cooking fuel, sanitation, housing, maternal health and nutrition remains a cause for concern, even if some of these indices looked worse 18 years back. The indices take into account the headcount of deprivation as well as its intensity, although it is not entirely clear how deprivation itself is assessed. Perhaps, the report writers could clarify here, as there is evidently no clear ‘line’ to define poverty that is not income-based. As for income-based poverty, the report cites World Bank’s assessment to say that on the basis of $2.15 per capita (2017 PPP), poverty headcount ratio fell from 18.73 per cent in 2015 to 11.9 per cent in 2021.

 

The MDP findings have, however, given rise to some questions. Unlike in the case of the UN HDIs, MDP does not explicitly include income, although bank account, assets and housing can be seen as proxies. The HDI accords equal weights to education, health and standard of living based on per capita income. While the assessment of poverty has come a long way from being income or calorie-based to include a basket of factors, downplaying income is not a great idea. Indeed, India’s GDP growth took a hit between FY18 and FY23. The annual growth rates of the four States that have shown good MDP progress are below the national average (2012-22) . It is remarkable that MDP has fallen sharply amidst rather low growth rates.

 

This, as the report rightly points out, can perhaps be explained by the success of Central schemes such as Jan Dhan Yojana, Poshan Abhiyaan and Garib Kalyan Yojana. But the success of such welfarism also raises a disturbing thought: in the absence of strong growth, can the population eventually do without these ‘antyodaya’ schemes? Poverty reduction works best when inclusive growth and welfarism go together.

 

 

 

 
 
BUSINESS STANDARD

January 19, 2024

Regulating fintech

RBI draft guidelines kick off the process

 

The Reserve Bank of India’s (RBI’s) draft norms for self-regulatory organisations for the financial technology sector (SRO-FT) broadly define the ideal qualities these bodies should possess, but they leave some room for flexibility within the contours. The draft framework notes, to maintain credibility, an SRO-FT should operate independently — remain free from the influence of a single member or a group of members, avoid conflicts of interest, and ensure unbiased oversight of its members. Independence would enhance an SRO-FT’s reputation as a neutral and reliable entity, which is essential for gaining the trust of industry participants and regulators. It is important that these entities have a robust information technology infrastructure and the ability to deploy technological solutions “within a reasonable timeframe”. They should also have sufficient net worth and a demonstrated capability to establish the necessary infrastructure.

 

An SRO-FT should be capable of motivating its members to align with regulatory priorities and promote a culture of compliance. It should also be empowered to investigate and take disciplinary action against members for non-adherence to codes, standards, and rules. This would help it shape a regulatory environment conducive to innovation while ensuring consumer protection. Though membership of an SRO-FT would be voluntary, financial technology companies (fintechs) would be encouraged to become members. The draft norms have left it to the sector to decide whether there should be one or multiple SROs for fintechs, but they seem to nudge stakeholders in the direction of the latter. The draft notes, given the diverse nature of fintechs, not restricting the number to one might dilute some industry concerns. On the other hand, having multiple SRO-FTs could undermine the representative character of self-regulation. Fintechs will have to find a consensus on this subject. Assuming that multiple SROs are set up, the guidelines leave room for different SRO-FTs to achieve the goals in different ways.

 

The draft also lays down guidelines on structure. The SRO should be set up as a not-for-profit company registered under Section 8 of the Companies Act, 2013. The applicant should represent the fintech sector with membership of entities across sizes, stages, and activities. If representation is inadequate at the time of application, a road map for achieving this within a reasonable timeline should also be given. The RBI clearly outlines its veto powers on the fit-and-proper status of the applicant company, the board of directors, and key managerial persons. It could also nominate observers on the board and inspect the books of the SRO-FT, or arrange to have the books audited. The expenses of such an inspection or audit would be borne by the SRO-FT in question. Most fintechs are not directly regulated at present.

 

This fast-growing industry has been a prime mover when it comes to enabling financial inclusion. However, there is a need to find ways to create incentives for SRO membership. The sector must adopt the best governance and operational practices. SROs would be expected to monitor the sector and guide growth in the right direction. This draft does well in setting up broad guidelines for the tasks they must fulfil, without imposing a straitjacket on processes.

 

 

 
 

BUSINESS STANDARD

January 19, 2024

Policy learnings

ASER findings should shift the debate

 

Any broader analysis of India’s human capital, arguably the most important source of its long-term growth and development, paints a sobering picture. The latest Annual Status of Education Report (ASER) by the non-profit organisation Pratham is no different. It gives a glimpse of what 14-18-year-olds in rural India are doing. The report must be commended for the insights it gives into the preparedness of a cohort that would soon take responsibility as adult citizens and join the workforce. However, as the findings over the years have shown, although students complete elementary education, many of them just fail to acquire basic foundational skills. This will not only hamper their chances in the labour market but also impede the pursuit of higher education or professional training.

 

Some of the pointers in the latest report need attention and should prompt recalibration of policy intervention. Among those surveyed, over 86 per cent in the age group of 14-18 years were enrolled at educational institutions. This is heartening and shows that efforts to increase enrolment have been fairly successful. Despite the hardships and uncertainties caused by Covid in recent years, the fact that households continued their children’s education is an encouraging sign. However, the educational institutions, perhaps, are not doing justice to the expectations of both students and their parents. As the report shows, about 25 per cent of those surveyed could not read Class-II-level text fluently in their regional languages, and only a little over half could read sentences in English. Further, only a bit more than 40 per cent could solve basic division problems (three digits by one digit), and just about 50 per cent could do other calculations like adding weights and calculating time.

 

Interestingly, the study this time also delved into the prevalence of digital awareness. The outcomes present both opportunities and threats. About 90 per cent of the youth reported having smartphones in the household and knowing how to use them. However, access to smartphones was much higher for males, which, in a way, could indicate discrimination within households. Further, over 90 per cent reported using social media in the reference week. But among those using social media, only about half knew about safety settings. Given the presence of smartphones in households and students having access to them, this medium can be leveraged to improve learning outcomes. Modules can be prepared to supplement classroom teaching. However, the prevalent use of social media is clearly a risk. With a limited understanding of how such mediums function, this cohort could be targeted with content that might cause harm in some way.

 

At the broad policy level, considering the learning outcomes, some fundamental issues must be debated. It is now clear that enrolment is no longer a policy challenge. Several initiatives taken by both the Union and state governments have ensured higher enrolment. Thus, the focus should now shift to learning outcomes. What will it take to dramatically improve learning outcomes? Is there a significant shortage of teachers, or do teachers lack the incentive to perform? Do states need to build better monitoring systems, or are teachers themselves not adequately trained? Answers to some of these questions are important. A lack of adequate education for India’s youth would not only undermine growth and development goals but also exacerbate inequality in a world driven by skills.

 

 
 

FINANCIAL EXPRESS

January 19, 2024

Glitzy talk fest

Davos meetings need to look ahead, not back, to identify solutions instead of just problems

 

The world doesn’t know Davos just because it’s a breathtakingly beautiful posh village in Switzerland’s easternmost canton of Graubunden. The world knows it because it is here that the political and business elite come every year to pity themselves on the miseries of the world and to do good business. The political heavyweights are, however, slowly becoming a rare species—evident from the long list of absentees in this year’s talk fest that ends on Friday. There is no Joe Biden, no Xi Jinping, no Narendra Modi and no Rishi Sunak, either. This was not the case earlier—most notably, in 1988, an agreement known as the Davos declaration was signed and was credited with averting war between Turkey and Greece. Years later, in 1992, Nelson Mandela made his first public appearance outside of South Africa after being released from prison two years earlier. He met with South African President FW de Klerk, and the meeting helped set the stage for a new path forward for the country.

 

But that’s a distant memory—it is getting increasingly clear that the political elite have stopped taking Davos seriously. Among the G7, only France and the EU are represented this year; the India team is led by Smriti Irani, Union minister of women and child development, and the US is represented by its Secretary of State Antony Blinken. Most of the US’ unusually small delegation left the Alps by the second day of the event—yet another symptom of diluted will to converse on the global stage. To many, the theme for this year’s Davos may sound like a cruel joke—’Rebuilding Trust’ (“aimed at “restoring collective agency, and reinforcing the fundamental principles of transparency, consistency and accountability among leaders”).

 

With war in Ukraine, tensions in the Taiwan Strait and South China Sea, Israelis fighting Hamas in Gaza, and missiles flying through the skies from the Red Sea to Pakistan, geopolitical trust has broken down. On paper, the Davos meeting would have been perfectly suited for at least discussing these conflicts seriously. But with most of the principal actors missing, that hope has been dashed. The fractured state of the world was on raw display at a session on Tuesday when European and Chinese leaders gave duelling speeches to open the annual meeting. There are more reasons for pessimism. For example, one of the major topics of discussion at this year’s Davos is a “long-term strategy for climate, nature and energy”. But the discussions so far on this have been thoroughly disappointing. UN Secretary-General Antonio Guterres called for the world to take more united action against global warming, while IMF chief Kristalina Georgieva said countries need to help finance the fight against climate change. Haven’t we heard this many times already?

 

Unfortunately, Davos has not been able to shake off its image of being a symbol of cloistered elites pampering themselves as they lecture on the need for sustainability. Given the multiple crossroads facing the global economy, Davos must look ahead, not back—to identify solutions instead of just problems. In short, Davos needs to do something more than just being a social opportunity for the world’s wealthy and elite to connect and for some companies to fish for business deals. Otherwise, as they head back down the mountain, the alpine elites may find that their improved mood does not last long.

 

 
 

FINANCIAL EXPRESS

January 19, 2024

Blackstone and BlackRock master moneymaking

 

Two major events are shaking up the asset-management world. Blackstone Inc. raised $1.3 billion for its first retail private equity fund, targeting those who have at least $5 million to invest. Separately, BlackRock Inc. is buying Global Infrastructure Partners for $12.5 billion, a major foray into alternative investments. The acquisition will make it the second-largest manager of private infrastructure assets.

 

After blowing past major milestones—the pair now manages over $1 trillion and $10 trillion, respectively—Blackstone and BlackRock need to show investors they still have a good story to tell. The two deals showcase just that.

 

Not every dollar earned is deemed equal. In private equity, for instance, being able to fund raise and earn management fees has become more valuable than notching superior fund performance.

 

As private equity groups enter 2024 with record a $2.8 trillion in unsold investments, analysts are brushing away potential gains from asset sales. After all, initial public offering markets remain anaemic; so do global M&A activities.

 

HSBC Holdings Plc, for one, calls realised capital gains on portfolio exits “low-quality, “while praising the “sticky and hence high quality” nature of fee-related earnings. In its sum-of-the-parts analysis, earnings from asset sales get a 2 5% valuation discount, while those from management fees receive a 50% premium.

 

Institutional investors are fed up by private equity firms that continue to ask for more money, with few exits in sight. Some sovereign wealth funds and state pension providers have told the managers that they want their money back before committing to upcoming raises.

 

Recently, a few are creating so-called evergreen funds. They are more difficult to manage, but allow investors to redeem more easily.

 

Seen in this light, Blackstone’s dash for mini-millionaires is a no-brainer. They are easy cash cows. The wealthy that Blackstone’s retail PE fund is targeting have only 11% to 13% of their assets invested in alternatives, versus 26% to 28% for endowment funds.

 

By the same token, BlackRock may also want more of the “high quality” earnings that Blackstone enjoys. Fees earned by alternative asset managers are more sticky, because their investments have a much longer time horizon than stocks, and investors are mentally prepared to be patient.

 

The revenue-sharing deal that BlackRock struck with GIP, which holds stakes in airports in Sydney and London, is telling. It would receive 100% of the management fees, but only 40% of the performance fees from future GIP funds. It’s a sign that BlackRock wants the “sticky” earnings.

 

By its own account, BlackRock is seeing dramatic industry shifts. In the core US exchange trade funds space, the iShares ETFs are losing ground to Vanguard and aggressive rivals such as JPMorgan Chase & Co. and Dimensional Fund Advisors. Meanwhile, price wars are widespread.

When BlackRock launched its first Bitcoin ETF in January, it started off at a 0.3% annual fee, which was already below analyst expectations, but had to lower to 0.25% after smaller peers undercut it.

Perhaps this is the peril of an asset manager under the constant scrutiny of public investors. If it was privately held like Vanguard, it would be only responsible to investors in its funds, allowing more focus on delivering returns. But as a publicly listed entity, it has to worry about earnings quality.

In the world of Blackstone and BlackRock, raising money is becoming more important than making money for clients. Their ultimate loyalty has to be to their shareholders.

 

 

Also See :

All Newspaper editorials in one place – January 18, 2024

All Newspaper editorials in one place – January 17, 2024

All Newspaper editorials in one place – January 16, 2024

All Newspaper editorials in one place – January 11, 2024

 

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