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The IUP Journal of Governance and Public Policy


March' 07
Regular Features
  • Governance - democratic self-rule; good governance; institutions of governance; human rights.
  • Public Policy - policy process; theoretical and conceptual debates; policy implementation.
  • Development - growth and development; sustainable development; public welfare; relief and rehabilitation.
  • Global Context - liberalisation, privatisation, globalisation; global politics; globalisers and anti-globalisers.
  • Foreign Policy and Foreign Relations - focus will be on India, but foreign policy and relations of other countries are also included.
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The Nuclear Deal: A Paradigm Shift in India-US Relations
Indo-US Nuclear Deal
India-US Nuclear Deal: Can it Cross Congressional Hurdles?
Indo-US Nuclear Agreement: Policy, Legislation, and Implications
The Hyde Act: A Prospective Perspective
Infrastructure: Foundation of Rural Development
     
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The Nuclear Deal: A Paradigm Shift in India-US Relations

-- B. Ramesh Babu

To augment the energy security of the nation through a large scale enhancement of our capacity to generate nuclear power is the overarching objective of the US-India civilian nuclear cooperation agreement. Towards this end, the Act of 2006 seeks to end the protracted and hurting nuclear isolation of India, under certain conditions. The second, but equally important, objective of the Act is to reduce the global demand for fossil fuels significantly and thereby contain environmental pollution worldwide. Issues of nuclear proliferation, arms race and disarmament, etc., though eminently desirable, are extraneous to the Deal.

The Deal itself should be seen as an integral part of the paradigm shift underway in the bilateral relationship between India and USA since the mid-1980s. As such, it is timely and welcome. However, from our point of view, there are still a few key concerns that need to be taken care of in the negotiations now underway with the US, IAEA and NSG in order to implement the Deal. Only future can unravel as to what extent our objections and concerns will be met. In any case, the option to walk out is always open to us, and also to the other side; and that has its consequences too. Reality has no obligation to be simple, simply because we are unable to comprehend its complexities.

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Indo-US Nuclear Deal

-- R. Kalidas

The outcome of the Indo-US Nuclear Deal significantly alters the share of nuclear power in the total electricity generation capacity in India in the coming decades. There is severe shortage of power at the present and it is likely to continue. With the modest resources available and due to environmental concerns, large-scale deployment of nuclear power is inevitable. However, limited availability of uranium is a serious constraint. Department of Atomic Energy (DAE)'s three-stage nuclear power programme of progressive utilisation of uranium, the plutonium generated from spent fuel and finally the abundantly available thorium is moving forward. However, progress is rather slow. For it to succeed, considerable quantity of uranium is required, which has to be imported. The Indo-US Deal assumes importance in this context. It can bring in external inputs in the form of nuclear reactors, fuel for the indigenously built reactors or both. In both the cases, India, in all likelihood, will not be permitted to reprocess the spent fuel to separate plutonium, the much-needed fuel for breeder reactors to continue the three-stage programme successfully. Thus, Indo-US Deal helps only in augmenting the generation capacity quickly and not in our plans of indigenous development in other areas. Acceptance of the Deal is subject to continuation of our freedom to pursue R&D, weapons programme and the three-stage plan independently. If it does not take off for whatsoever reason, we will continue with our plans. However, the prospect of nuclear power contributing significantly to the nation's energy needs gets adversely affected and delayed.

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India-US Nuclear Deal: Can it Cross Congressional Hurdles?

-- P. M. Kamath

The Congress led United Progressive Alliance (UPA) Government negotiated with the Bush Administration a Civilian Nuclear Deal (CND) in July 2005. There is no indication that Prime Minister Manmohan Singh had taken Parliament into confidence before he went to the US. However, he made a statement on the CND soon after his return on 29 July. There was a detailed discussion on it in the Parliament in August 2005, which went on along the usual party lines. The Congress members eulogised the PM for his achievement while the BJP—which had in fact initiated talks with the US Government for a civil Nuclear Deal—opposed it. Elders in the Rajya Sabha, based on their past experience, cautioned the Government on possible stabbing in the back by the US.

What is the significance of the Nuclear Deal to India? Why was it not implemented even though more than 18 months are over after it was signed on 18 July 2005? If the CND were implemented after overcoming all hurdles, could we hope to see great improvement in India-US relations? This paper aims to understand the significance of the Nuclear Deal for both the countries. At the same time, it also tries to explain the delay in the implementation of the Deal because of the unique legislative process in the American system of Government. The paper also tries to evaluate the possible success of the two Governments in overcoming the legislative hurdles in implementing the Deal and its positive role in improving India-US relations.

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Indo-US Nuclear Agreement: Policy, Legislation, and Implications

-- P. V. Rao

Nuclear issue always dominated and influenced the general course of Indo-US relations. Delivery of US nuclear fuel and technology to India under the bilateral Agreement of 1963 was frequently contested by the US Congress, particularly after Pokhran-I. Ever since India resisted the American-sponsored multilateral nuclear non-proliferation agreements such as NPT and CTBT, Congress was opposed to cooperation with India. In this regard the Executive and Legislative branches of the US Government did not always see eye to eye. This paper examines the current controversy over the Indo-US Nuclear Agreement of July 2005 in historical perspective. Unlike in the past the Bush Administration is now very enthusiastic to cooperate with India in the promotion of India's civilian nuclear energy generation capability. However, if the past experience is any guide, the US Congress is likely to be sceptical and obstructive when the process of implementing the Deal unfolds in the near future.

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The Hyde Act: A Prospective Perspective

-- G. R. K. Murty

The Hyde Act is considered by some as a "nuclear triumph" for India, while some dub it as an infringement on her sovereign rights. It is strongly believed that the "growth constraint would by and large be removed for civilian nuclear power if the ultimate agreement emerges out as wished for." Nevertheless, we must look at the Hyde Act with an eye on the future rather than being bogged down by the sour past of the bilateral relations. While not succumbing to "outside pressure", we should look at the Deal from the perspective of "paying something to get something in return". And its execution calls for "statesmanship" at every level of governance on both the sides.

Article Price : Rs.50

Infrastructure: Foundation of Rural Development

-- Author: NCAER

Reviewed by Prajna Paramita Mishra

As India is trying to achieve a growth rate of more than 8% during the 11th Plan period, infrastructure development in both rural and urban areas is vital. So far urban areas have been ahead and care should be taken to achieve development of infrastructure in rural areas on an equally large scale. Otherwise, the rural-urban imbalance will grow further, which is unjust and could undermine the very legitimacy of our governing institutions.

Article Price : Rs.50
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Automated Teller Machines (ATMs): The Changing Face of Banking in India

Bank Management
Information and communication technology has changed the way in which banks provide services to its customers. These days the customers are able to perform their routine banking transactions without even entering the bank premises. ATM is one such development in recent years, which provides remote banking services all over the world, including India. This paper analyzes the development of this self-service banking in India based on the secondary data.

The Information and Communication Technology (ICT) is playing a very important role in the progress and advancement in almost all walks of life. The deregulated environment has provided an opportunity to restructure the means and methods of delivery of services in many areas, including the banking sector. The ICT has been a focused issue in the past two decades in Indian banking. In fact, ICTs are enabling the banks to change the way in which they are functioning. Improved customer service has become very important for the very survival and growth of banking sector in the reforms era. The technological advancements, deregulations, and intense competition due to the entry of private sector and foreign banks have altered the face of banking from one of mere intermediation to one of provider of quick, efficient and customer-friendly services. With the introduction and adoption of ICT in the banking sector, the customers are fast moving away from the traditional branch banking system to the convenient and comfort of virtual banking. The most important virtual banking services are phone banking, mobile banking, Internet banking and ATM banking. These electronic channels have enhanced the delivery of banking services accurately and efficiently to the customers. The ATMs are an important part of a bank’s alternative channel to reach the customers, to showcase products and services and to create brand awareness. This is reflected in the increase in the number of ATMs all over the world. ATM is one of the most widely used remote banking services all over the world, including India. This paper analyzes the growth of ATMs of different bank groups in India.
International Scenario

If ATMs are largely available over geographically dispersed areas, the benefit from using an ATM will increase as customers will be able to access their bank accounts from any geographic location. This would imply that the value of an ATM network increases with the number of available ATM locations, and the value of a bank network to a customer will be determined in part by the final network size of the banking system. The statistical information on the growth of branches and ATM network in select countries.

Indian Scenario

The financial services industry in India has witnessed a phenomenal growth, diversification and specialization since the initiation of financial sector reforms in 1991. Greater customer orientation is the only way to retain customer loyalty and withstand competition in the liberalized world. In a market-driven strategy of development, customer preference is of paramount importance in any economy. Gone are the days when customers used to come to the doorsteps of banks. Now the banks are required to chase the customers; only those banks which are customercentric and extremely focused on the needs of their clients can succeed in their business today.

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Governance and Public Policy