27th February

Obama’s protectionism

The article comments on Obama’s present level of protectionism which is reflected from his speech in his first speech to the joint session of US Congress. However, if the depression is prolonged, author feels that the protectionism may shift from low to medium.

The decision to withdraw tax breaks from US companies shipping job abroad has brought Indian exporters in a fix since no details have been mentioned. US media rather focused on his speech that focused on raising taxes, increasing healthcare and recapitalizing banks. Tax breaks given to the companies having subsidiaries abroad would encourage repatriation of the profits which was earlier not done to avoid double taxation of 35%. Although restrictions on H1B visa would affect India marginally, much worse would be stopping US companies from off shoring itself. Companies that do not outsource remain uncompetitive and die eventually which is self-destroying strategy. Politicians in US should differentiate companies that ship the job abroad and those 1000+ companies who have operations abroad. 

However, Obama dare not support outsourcing at the time of recession. At the same time Treasury Secretary Summers, who very well knows the implications Smoot-Hawley Act had during the Great Depression of 1930s, should prevent Obama from getting into the protectionist mode. However, if the depression continues, he might get into medium protectionist mode from low.

Sharifs disqualified

The article expresses apprehensions over the recent events that have unfolded in Pakistan which is once again giving rise to instability in the Pakistani politics.

Disqualification of Nawaz Sharif by SC in Pakistan to contest elections has added to rising instability. When the country is already in a fix on national security and economic front, this disqualification of PML (Pakistan Muslim League) leaders comes as another jolt. The disqualification is also the result of Zardari’s to establish control over Punjab even as the popular mandate in the province is of PML. The demand of Nawaz Sharif to restore the judges sacked by Parvez Musharraf renders the National Reconciliation Ordinance, a barter agreement between Late Benazir Bhutto, Zardari and Parvez Musharraf for the secure entry into politics of the former two, invalid.

The disqualification would only intensify Sharif’s demand for the restoration of judges and may even collate with anti-Zardari and anti-US movements. It will only add to the political turbulence and Zardari might end up damaging PPP, the only national party and a quasi-progressive democratic force in Pakistan.

Fine art of looting

The article expresses concern for the increasing difficulties on reclaiming the lost National artifacts by several countries across the world.

The most recent case being that of failure of a Chinese Group in reclaiming the two bronze artifacts looted by Anglo-French forces from the Imperial summer palace in Yuanmingyuan during the Second Opium War in 1860. Not only the Chinese group was denied the claim but they were fined with €1000 each as costs. This leads to serious implications in future. There are many other cases across the world which involves forceful possession of other country’s artifacts. The most famous being possession of “Elgin Marbles” or the priceless statues and architectural motifs from Acropolis in Athens, by the British ambassador between 1801 and 1812 and send to the Ottoman Empire, Lord Elgin. Several possessions of India origin are also currently at various places across the world. 

However, in the current scenario it is becoming all the more difficult to get the National treasures back to their original place. The only resort is to buy them back like Danilov Monastery bells which were bought back from Harvard University by the Russian billionaire Viktor Vekselberg last year. For India, it will have to let go the duty levied on the historic items if it want to follow the suit.