Connect with us
//pagead2.googlesyndication.com/pagead/js/adsbygoogle.js (adsbygoogle = window.adsbygoogle || []).push({});

Asean

Avoiding policy paralysis in India

Published

on

Author: Vikas Kumar, Azim Premji University

India’s ruling Indian National Congress party is facing stiff opposition on a variety of issues from, among others, its own coalition partners. Some of the proposed policies require constitutional amendments.

This is an important factor contributing to the prevailing policy paralysis in the national government. Since the Congress is unlikely to significantly improve its tally and the opposition Bharatiya Janata Party is unlikely to obtain a simple majority on its own in the next general election, the next national government can only achieve a larger majority if it forges a larger coalition. But can a larger coalition push through contentious policies that may require constitutional amendments? In answering this question, an assessment of the ease of amending the Constitution of India is in order.

The procedure for constitutional amendment is laid down in Article 368 of the Constitution, and a number of other Articles limit the applicability of Article 368 in certain classes of amendments. The Supreme Court of India in Kesavananda Bharati v State of Kerala in 1973 imposed constraints on the parliament’s capacity to amend the basic structure of the Constitution. The Supreme Court subsequently reiterated its stance in Minerva Mills Ltd v Union of India in 1980.

As of 25 January 2013, the Constitution has been amended 98 times since its adoption on 26 November 1949. Excluding the first amendment, which addressed immediate operational difficulties, and the various amendments related to the State of Emergency (1975-1977) declared by the Indira Gandhi Government, the number of amendments drops to 93. The frequency and likelihood in which amendments have been passed varies throughout India’s independent history. While six amendments were adopted in 2003, there were no amendments in 18 out of 63 years since 1950, including between 1995 and 2000 when six different governments ruled the country.

The majority of amendments — 76 out of 93 — deal with issues like the creation of new states and the enactment of special provisions for certain regions within states, the conferral of constitutional recognition of certain languages, changes in the English spelling of recognised languages, the delimitation of electoral constituencies, extending the scope and lifespan of affirmative action policies, extension of President’s Rule in an insurgency-affected state, administrative and parliamentary procedures and oaths, and taxation and rent control. Adding 10 amendments that qualify property rights to this list, then it seems that more than 90 per cent of the amendments do not affect the basic structure of the Constitution. The remaining seven amendments include ones that limit fundamental rights but also those that enshrine India’s right to education, abolish the vestiges of princely states, and institutionalise the third tier of government.

While the sheer number of successful amendments does not necessarily suggest that the Constitution is by all means flexible, the barrier to progressive constitutional amendments is not a legal one — the real hurdle is political.

Two facts emerge from an analysis of both successful (1950-2013) and failed (1950-2004) constitutional amendments. First, while the rate of amendment has been higher in the post-Kesavananda period, amendment bills are less likely to receive the parliament’s approval. Second, compared to single-party governments, amendment bills introduced by coalition governments are more likely to fail — coalition governments are less likely to successfully amend the Constitution.

Part of the reason for this failure could be that coalition governments are relatively short-lived or, at least, suffer from greater uncertainty due to a weaker majority. Constitutional amendments, on the other hand, require governments to follow through in a lengthy process and be supported by a supermajority. Moreover, the majority that coalition governments enjoy often depends on post-election coalitions consisting of regional and caste-based parties, which are often in conflict with other coalition partners competing for the same vote base or with the leading party of the coalition itself. In other words, a larger post-election coalition cannot automatically cure the central government’s legislative weaknesses. This is particularly true of amendments that require ratification by states because a number of states are ruled by opposition parties.

In order to avoid policy paralysis arising from constitutional constraints, national parties will need to forge pre-election coalitions, which consist of regional partners with more or less exclusive support bases, and agree on a common manifesto ahead of the next general election. The leader of the next coalition government also needs a proactive strategy to engage with states ruled by the opposition, as well as states ruled by smaller coalition partners. This will lead to a more effective parliament and ensure the integrity of Indian federalism.

Vikas Kumar is Assistant Professor of Economics at Azim Premji University, Bangalore.

Read more here:
Avoiding policy paralysis in India

Asean

ASEAN weathering the COVID-19 typhoon

Published

on

Vietnam's Prime Minister Nguyen Xuan Phuc addresses a special video conference with leaders of the Association of Southeast Asian Nations (ASEAN), on the coronavirus disease (COVID-19), in Hanoi 14 April, 2020 (Photo:Reuters/Manan Vatsyayana).

Author: Sandra Seno-Alday, Sydney University

The roughly 20 typhoons that hit Southeast Asia each year pale in comparison to the impact on the region of COVID-19 — a storm of a very different sort striking not just Southeast Asia but the world.

 

Just how badly is the COVID-19 typhoon thrashing the region? And what might the post-crisis recovery and reconstruction look like? To answer these questions, it is necessary to investigate the strengths and vulnerabilities of Southeast Asia’s pre-COVID-19 economic infrastructure.

Understanding the structure of the region’s economic house requires going back to 1967, when Southeast Asian countries decided to pledge friendship to one another under the ASEAN framework. While other integrated regions such as NAFTA and the European Union have aggressively broken down trade barriers and significantly boosted intra-regional trade, ASEAN regional economic integration has chugged along slower.

Southeast Asian countries have not viewed trade between each other as a top priority. The trade agreements in the region have been forged around suggestions for ASEAN countries to lower tariffs on intra-regional trade to within a certain range and across limited industries. This has lowered but not eliminated barriers to intra-regional trade. Consequently, a relatively significant share of Southeast Asian trade is with countries outside the region. This active extra-regional engagement has resulted in ASEAN countries’ successful integration into global value chain networks.

A historically outward-facing region, in 2010 around 75 per cent of Southeast Asian commodity imports and exports came from countries outside of ASEAN. This share of extra-regional trade nudged closer to 80 per cent in 2018. This indicates that ASEAN’s global value chain network embeddedness has deepened over time.

Around 40 per cent of ASEAN’s extra-regional trade is with the rest of Asia. From 2010 to 2018 Southeast Asian countries forged major trade relationships with four Asian countries: China, Japan, South Korea and India. Outside Asia, the United States is the region’s major trading partner. ASEAN’s trade focus on Asia’s largest markets is not surprising. Countries tend to establish trade relationships with large, geographically close, and culturally similar markets.

Fostering deep relationships with a few large markets, however, is a double-edged sword. While it has allowed ASEAN to benefit from integration in global value chains, it has also resulted in increased vulnerability to the shocks affecting its network connections.

ASEAN’s participation in global value chains has allowed it to transition from a net regional importer in 1990 to a net regional exporter in 2018. But the region’s deep embeddedness in a small and tightly-coupled network cluster of extra-regional global value chain partners has exposed it to disruption to any and all of its external partners. By contrast, ASEAN’s intra-regional trade network structure is much more loosely-coupled: a consequence of persistent intra-regional trade barriers and thus lower intra-regional trade intensity.

In the pre-COVID-19 period, ASEAN built for itself an economic house held up by just five extra-regional markets, while doing less to expand and diversify its intra-regional trade network. The data shows that ASEAN trade became increasingly concentrated in these few external markets between 2010 and 2018.

This dependence on a handful of markets does not bode well for risk and crisis management. All of the region’s major trading partners have been significantly affected by COVID-19 and this in turn is blowing the ASEAN economic house down.

What are the ways forward? The immediate task at hand is to get a better picture of the region’s position in global value chain networks and to get on top of managing its network risk exposure. Already there are red flags around the region’s food security arising from its position in food value chains. It is critical to look for ways to introduce flexibility into existing supply chains for greater agility in responding to crises.

It is also an opportune time for ASEAN to harness the technology transfer gains of global value chain participation and invest in innovation-driven diversification of products and markets. The region’s embeddedness in global value chain networks certainly places it in a strong position to readily access large export markets not just in Asia but also Europe and the Americas.

Over the longer term, ASEAN is faced with the question of whether it should seriously look…

Source link

Continue Reading

Markets

Tiger Trade Launches SGX Trading, Meeting Demand from Asian Investors

Access to the Singapore Exchange (SGX) adds to Tiger Brokers’ current menu of stock exchanges, such as the New York Stock Exchange (NYSE) and the Nasdaq Stock Market (NASDAQ), the world’s two largest stock exchanges, as well as the Hong Kong Stock Exchange (HKEX).

Published

on

SINGAPORE (ACN Newswire) – Tiger Trade, a one-stop mobile and online trading application by Tiger Brokers, has launched access to the Singapore Exchange (SGX).

(more…)
Continue Reading

Asean

Can Asia maintain growth with an ever ageing population ?

To boost productivity in the future, Asian governments will have to implement well-targeted structural reforms today.

Published

on

Asia has been the world champion of economic growth for decades, and this year will be no exception. According to the latest International Monetary Fund Regional Economic Outlook(REO), the Asia-Pacific region’s GDP is projected to increase by 5.5% in 2017 and 5.4% in 2018. (more…)

Continue Reading