Poor becoming poorer in India

In India taxation policy is pro-rich, depriving the poor majority of even the basics to improve their lives. The poor became poorer, while the rich got richer in India during 2021, says a survey by Oxfam International.

Indian billionaires increased their wealth by 39% in 2021 and are getting richer at a much faster pace, but the poor saw their annual income drop by 53% and are still struggling to earn a minimum wage and access quality education and health care, the report revealed.

Titled “Inequality Kills: India Supplement 2022,” the report said that the richest 98 Indians own the same wealth as the bottom 555 million people.

Donate to UCA News with a small contribution of your choice Indian billionaires grew from 102 in 2020 to 142 in 2021 even though the country witnessed yet another year of pandemic.

 This was also the year when the share of the bottom 50% of the population in national wealth was a mere 6%. The combined wealth of the richest 100 Indians on the Forbes list stands at more than half a trillion US dollars. There were only three women among the 100 richest Indians.

India had the third-highest number of billionaires in the world, just behind China and the United States. It now has more billionaires than France, Sweden and Switzerland combined.

In 2020, India’s top 10% held close to 45% of the country’s national wealth. The Oxfam report once again confirmed that while India is one of the fastest-growing economies in the world, it is also one of the most unequal countries with inequality continuing to rise sharply for the last three decades.

Since 2015, more and more of India’s wealth has gone to its richest one percent. Globally, too, wealth increased during 2021 to make the world’s billionaire elite richer when common people struggled against the pandemic for the second consecutive year.

“The massive gap between rich and poor will continue to increase to unimaginable proportions if the elected representatives of people in parliament do not take their job seriously,” said A.C. Michael, convener of the United Christian Forum.

This deliberate inequality was bound to continue, said Michael, a former member of Delhi Minorities Commission. “Sadly, they, elected representatives, are more busy dividing people on the basis of religion for their political gains instead of addressing the more pressing issues that could better the lives of people,” he added.

Professor Himanshu Jain of Jawaharlal Nehru University said what is particularly worrying in India’s case is that “economic inequality is being added to a society that is already fractured along the lines of caste, religion, region and gender.”

This surge in the wealth of the country’s top 100 billionaires comes at a time when India’s unemployment rate was as high as 15% in urban areas and the healthcare system was on the brink of collapse.

Unfortunately, not only has the taxation policy been pro-rich but it has also deprived India’s states of important fiscal resources — both particularly damaging in the context of the Covid-19 crisis.

The pandemic revealed how dependent Indian states are on the federal government for technical expertise and financial support despite a federal structure supported by India’s constitution.

In spite of health being a state subject, the state continued to retain more resources in non-divisible pools rather than devolving them to manage the pandemic.

The Oxfam report recommended that the government revisit its primary sources of revenue generation, adopting more progressive methods of taxation and assessing its structural issues that permit such wealth accumulation by the rich.

Additionally, the government should also redirect revenue towards health, education and social security, treating them as universal rights and as a means of reducing inequality, thereby avoiding the privatization model for these sectors.

Oxfam also called on the government to recognize the unequal lives that Indian citizens live by measuring them and legislating to protect their interests.

Courtesy: South Asia Journal

Tehran-Baku ink MoU for constructing bridge over Astarachay River

Iran and Azerbaijan have signed a memorandum of understanding (MOU) for cooperation in constructing a bridge over the Astarachay River. The MoU was signed by Iranian Deputy Transport and Urban Development Minister Kheirollah Khademi and Azerbaijan’s Deputy Minister of Digital Development and Transport Rahman Hummatov in Baku.

As reported by IRNA, the project for the construction of the mentioned bridge was commenced in a ceremony attended by Iranian Transport Minister Rostam Qasemi and Azeri Deputy Prime Minister Shahin Mustafayev.

Qasemi, who is also the head of the two countries’ Joint Economic Committee, traveled to Azerbaijan with a delegatio to visit the country’s economic areas and explore avenues of mutual cooperation.

Iran and Azerbaijan had earlier announced the total investment made in the project to be 4.7 million euros.

The construction of Astarachay Bridge is going to be a positive step in completing the North-South Corridor and is expected to open a new gate for the development of all-out relations between the two neighbors.

Speaking at the ceremony, Mustafayev said the construction of the bridge is scheduled to be completed by the end of the current year.

"The president and the government of the Republic of Azerbaijan attach special importance to the development of relations with the Islamic Republic of Iran, and the presidents of Iran and Azerbaijan expressed interest in further developing relations between the two countries in a cordial meeting in Ashgabat," the official said.

Azerbaijan and Iran have established deep relations in various areas including trade, economy, energy, customs, and investment, he said: "There are good opportunities between the two countries to implement joint projects in these fields."

Mustafayev further mentioned the upward trend of trade between the two countries and said, “Despite the Coronavirus pandemic in the last two years, the trade turnover of Iran and the Republic of Azerbaijan in the first 11 months of 2021 increased by 30% as compared to the previous year and the amount of road transport also increased by 62.5%.”

“During this period, the transportation and transit of goods between the two countries have not stopped for a single day,” he stressed.

Qasemi for his part called Azerbaijan the closest neighbor to Iran and said, "We hope that after the meeting of the presidents of the two countries, relations between the two nations will develop as much as possible."

He pointed to the development of relations with neighbors as one of the priorities of the Iranian government and, referring to Iran's participation in the implementation of projects in Azerbaijan’s liberated territories in Karabakh, said, "Cooperation between the two countries in this area can accelerate the reconstruction of these regions.”

Qasemi noted that the development of transport and transit in the region is in the interest of both countries, and said that the two countries’ Joint Economic Committee could help deepen economic relations between them, as well as provide the necessary facilities for businessmen and entrepreneurs.

Khademi termed the construction of the Astarachay Bridge as an effective step in completing the north-south corridor and said, "The construction of this bridge will lead to economic, tourism, industrial and transportation development of the two countries due to the cultural, social and religious commonalities of the two neighboring countries."

“The Astarachay border bridge will lead to the development of transit trade between the two countries, which, in parallel with the existing railway bridge, will lead to the comprehensive development of the region,” he said.

Crisis in Belarus and role being played by Russia, European Union and United States

After the presidential election in Belarus on August 9, 2020, mass demonstrations broke out spontaneously throughout the country. Hundreds of thousands of people took to the streets protesting against widespread election fraud. 

These protests soon met with sustained, brutal suppression. The masses were eventually driven from the streets, yet the resistance against the Belarusian dictatorship persists to this day.

It is clear that Alyaksandr Lukashenka lost the popular legitimacy he had enjoyed for many, if not most, of the last 26 years. Why did this Belarusian revolution fail to succeed? The responses of Russia, the European Union, and the United States to the 2020–21 protest movement had a decisive impact on the pro-democracy uprising in Belarus and will continue to be crucial for how the situation in Belarus unfolds in the future.

The 2020–21 Belarusian protest movement to date can be divided into three main phases: violent repressions; temporary cease-fire; and regime retaliation. The next phase of the Belarusian crisis will be one of power transition. This transition will likely happen after the constitutional referendum scheduled for February 27, 2022. The current draft of the new Belarusian constitution proposes several crucial changes for the political system in Belarus.

First, the amendments aim to weaken the powers of the Belarusian parliament and to strengthen the role of the All-Belarusian People's Assembly (ABPA). This body which under the present constitution does not have governing status would be endowed with wide-ranging powers and would consist of 1,200 delegates loyal to the regime. The ABPA would have the power to approve Belarus’s foreign and security policy, propose changes to the constitution, draft laws, select judges of the top courts, and have other functions. The acting president would automatically become a member of the ABPA and potentially serve as its chair, if elected by the other delegates. By strengthening the powers of the ABPA, Lukashenka is trying to create an alternative center of power which would allow him to stay in the Belarusian political arena even if he decides to step down as a president.

Second, the constitutional amendments envisage the president’s immunity from prosecution and prohibit anyone who temporarily left the country in the last 20 years from running for presidency. This provision directly targets members of Belarusian political opposition who were forced to live into exile to avoid repressions. This amendment deprives the Belarusian opposition of the opportunity to challenge the ruling regime directly inside Belarus, and provides additional guarantees for the safety of Lukashenka and his entourage. 

Finally, the new constitutional provisions also grant the president immunity from prosecution and introduce a limit of two five-year presidential terms in office. However, since these restrictions would only apply going forward, Lukashenka could potentially stay in power until 2035.

Lukashenka has not yet declared whether he will step down after the referendum. The current political instability in the region, including the January protests in Kazakhstan and the escalating tensions between Russian and Ukraine, increase the chances that Lukashenka will stay in power after the referendum.

In either case, the West will not cease pressure on the Belarusian regime and will continue to support those fighting for democratic reforms there. For its part, Russia will continue to use the vulnerability of Lukashenka and his close entourage to increase its political, economic, and military presence in Belarus.

Russia, the EU and the US have all played an important role in the evolution of the 2020–21 Belarusian post-electoral crises. The Belarusian mass protests failed to succeed in August 2020, thanks both to Russia’s significant support of the Lukashenka regime and a lack of quick and comprehensive response from the EU and the US.

However, the Ryanair incident in May 2021 catalyzed increased Western action against the Lukashenka regime. It resulted in greater coordination between the EU and the US and led to the passage of several packages of targeted sanctions. Hard sanctions are likely to continue to serve as the baseline policy towards the Lukashenka regime in the near future for the EU and the US, while Russia will likely continue exerting its influence in pursuit of greater political, economic, and military integration with Belarus.  Lukashenka’s regime has a potential to maintain political control in the country in the short-term perspective. However, in the long run it will have to face the irreversible transformations happening in the Belarusian society and step on a path of political transition.

US confronts a pair of ruthless dictatorships

I am inclined to share with my readers an article by Newt Gingrich, warning that the United States is confronting a pair of ruthless dictatorships in two potential collisions that could change history and leave the super power at enormous risk.

The news media focus is currently on Vladimir Putin and his threat to occupy part or all of Ukraine. Everyone recognizes that President Joe Biden made a dangerous mistake in his two-hour press conference when he said “a minor incursion” by Russia into Ukraine might be acceptable. His administration was trying to reverse that comment as soon as the press conference ended and spent the next two days trying to reassure everyone—including our allies—that Biden did not mean what he clearly said.

Of course, the Biden threat that there would be “severe sanctions” if Russia invaded Ukraine probably has no effect on Putin. First, when he seized all of Crimea the Obama-Biden administration threatened severe sanctions and nothing seemed to hurt Russia much. Second, at a time when Biden’s war on American energy has raised the price of oil and forced him to beg Russia and Saudi Arabia increase production to lower the price, Putin must be reveling in the absurdity of Biden’s words versus Biden’s actions.

Oil is the biggest source of foreign income for Russia. Every US$/barrel increase is a windfall Putin can spend on the Russian military and foreign adventures. In October 2020, with President Donald Trump’s energy independence policy, the price of crude was US$39.90/barrel. Today, with Biden’s anti-American energy policy, the price of crude has jumped to US$85.43/barrel.

Despite Biden’s strong words about sanctions, the effect of his policies has been a US$45.53/barrel increase in profit (114.11%) for Putin to pay off his oligarchs, buy better military equipment, and engage in foreign adventures. Any supposed sanctions Biden imposed would have to overcome this windfall—and then go much deeper—for Putin to even feel it.

Far from being intimidated, the Russians have announced that they will be holding military maneuvers off Ireland. That country has complained and said they don’t want Russian warships in their neighborhood. Since Ireland is not a member of NATO, and its own forces are totally inadequate for dealing with Russia, NATO would have to get involved if there was a serious incident.

While Putin is keeping everyone focused on Ukraine, Xi Jinping is busy putting pressure on Taiwan. Last Sunday, the Chinese Communists flew 39 aircraft—including a nuclear bomber—near Taiwan.

The simple fact is Putin and Xi sense real weakness in the American commander in chief. They sense that American confusion and weakness is an enormous opportunity.

While Biden has a difficult time communicating with his allies—and has had no impact on Germany which is now choosing Russian natural gas over NATO—Putin and Xi are talking regularly and coordinating activities.

The American system was built for a strong commander in chief. Gen. George Washington spent eight years fighting the British to establish independence of United States. When he became President of the Constitutional Convention, his influence was decisive. Washington knew from his own experience that American survival in a dangerous world required a commander in chief—not a legislator in chief, not a speechmaker in chief, not a cheerful conciliator in chief. The American presidency only works with a strong, competent, commander in chief. Currently United States does not have one. Biden is incapable of filling Washington’s shoes.

He has referred to a movie, “Munich: The Edge of War.” It is a clever treatment of the Munich meeting between Adolf Hitler and British Prime Minister Neville Chamberlain in which Chamberlain gave away Czechoslovakia in order to buy what he called “peace for the time.”

Before Munich, in a radio broadcast to the British people, Chamberlain had described the German-Czechoslovakian crisis as “a quarrel in a far away country between people of whom we know nothing.”

On learning that Chamberlain had sold out the free country of Czechoslovakia—leaving it defenseless against the German dictatorship—Winston Churchill warned: “You were given the choice between war and dishonour. You chose dishonour and you will have war.”

He draws the conclusion, “Weakness when facing dictators is always dangerous. The situations in Ukraine and Taiwan are both dangerous. The US commander in chief appears incapable of meeting the dual challenge”.

 

OPEC plus likely to stick to planned March output increase

OPEC plus is likely to stick with a planned increase in its oil output target for March 2022 when it meets on Wednesday next week. Several sources from the producer group said, as it sees demand recovering despite downside risks from the pandemic and looming interest rate rises.

While two OPEC plus sources said oil at a seven-year high close to US$90 a barrel might prompt the group to consider further steps, the vast majority of sources said no new decision was expected at the February 02, 2022 online meeting.

One Russian source told Reuters the country was concerned the price rally might revive a boom in US shale production.

"OPEC plus countries should be on high alert with this price level given the bullish forecasts for shale oil production in 2022," the source said.

The source added that high oil prices were also hurting profit margins of Russian refineries.

OPEC plus, which groups the Organization of the Petroleum Exporting Countries (OPEC), Russia and other allies, has raised its output target each month since August by 400,000 barrels per day (bpd) as it unwinds record production cuts made in 2020.

Current plans would see OPEC plus do so again in March.

"We are very likely to go for another 400,000 barrels per day," one of the OPEC+ sources said. "There are no reasons against it."

OPEC plus has resisted pressure from the United States since last year to raise supplies more quickly.

Despite its increased targets, actual output from OPEC plus has not kept pace as some members struggle with capacity constraints, and this has been a factor underpinning prices.

OPEC plus missed its production target by 790,000 bpd in December 2021 as members such as Nigeria and Angola struggled to raise output, the International Energy Agency said.

Several banks and analysts including Morgan Stanley and JP Morgan, expect oil prices to top US$100/barrel later in the year 2022 amid tight OPEC plus spare capacity and strong demand.

Some OPEC plus sources believe that the recent price rally is driven more by geopolitical tensions than fundamentals.

"With Russian-Ukrainian tension one could expect that, but [it is] not a supply issue for sure," one of the sources said about prospects for US$100 oil.

US succeeds in selling Bradley fighting vehicles to Croatia

According to a report, Croatia will buy 89 US Bradley fighting vehicles as part of a plan to form an infantry brigade to aid NATO, Prime Minister Andrej Plenkovic announced Wednesday. 

Croatia will receive 62 fully equipped and armed versions of the armored vehicles plus another 22 for reserve parts and five for training in a US$196 million deal, Plenkovic announced on Twitter. 

As part of the agreement, Croatia will pay slightly more than US$145 million while the United States will cover US$51 million. 

“This is a confirmation of good cooperation and I believe that in this way, we have added another piece to the mosaic of our cooperation,” Plenkovic told reporters, according to The Associated Press. “The Croatian army will achieve a new level of quality.” 

Croatia, which has been negotiating the vehicle deal since 2017, currently uses Bradley models from as far back as Operation Desert Storm in the early 1990s and wants to upgrade the machine guns, missiles, radios and armor, among other parts.  

Plenkovic said the new vehicles will begin arriving in 2023. 

A member of NATO, Croatia looks to bolster its military equipment to keep up with its neighbor and Russian ally Serbia. The country also must contend with an increasingly aggressive Kremlin, though its president said Tuesday that it would not be sending troops if tensions between Russia and Ukraine continue to escalate. 

 

Netherlands cancels €2.2 million contract with Palestinian NGO

Reportedly, the Netherlands has canceled a €2.2 million contract with the Union of Agricultural Work Committees (UAWC) over ties to the Popular Front for the Liberation of Palestine, according to a report by NGO Monitor.

The Netherlands announced that it would cancel its contract with the Palestinian NGO on January 5, 2022 amid an internal review that revealed 34 officials and board members who worked at UAWC in 2007-2020 had ties to the PFLP – some of whom held leadership positions and were responsible for vicious terror attacks, such as the 2019 murder of 17-year-old Rina Shnerb.

NGO Monitor, itself a non-governmental organization that analyzes International NGO's reception and potential bias toward Israel, originally alerted the Dutch government about the affiliation of many UAWC employees and board members to the PFLP in 2018 and have remained in communication since.

As a result of the investigation and subsequent cancellation of the contract's funding, NGO Watch estimates that the Netherlands government has cut €2.2 million worth of support to the UAWC.

Following the announcement, NGO Monitor sent letters to the governments of Switzerland, Italy, Spain, France, Germany, Belgium, Norway, Denmark, Sweden and the European Union urging them to also freeze all ongoing or future funding to UAWC and other PFLP-linked NGO's.