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Monday, January 14, 2013

Development fee and a User development fee



Development fee and a User development fee

  • The Ministry of Civil Aviation is considering abolishing the development fee being levied at the Delhi and Mumbai airports.
      • According to the Ministry, this is being done to make air travel more affordable.

    What is a development fee and a user development fee
    • Development Fee (DF) is primarily intended to fund the establishment or upgradation of an airport. 
      •  It is intended to bridge the gap between the cost of the project and the finance available with the airport operator.
      • Currently only the Mumbai and Delhi Airports levy a DF.
    • User development fee (UDF), which may be levied by the airports.
      • UDF is generally regarded as a revenue enhancing measure.  
      • It is levied by the airport operators to meet operational expenditure.
    Section 22 A of the Airports Authority Act, 1994 (amended in 2003) gives the Airport Authority of India (AAI) the power to levy and collect a development fee on embarking passengers.
    •  The Act provides that the development fee can be utilised only for
      • (a) funding or financing the upgradation of the airport
      • (b) establishing a new airport in lieu of the airport at which is levied; and 
      • (c) investing in shares of a private airport in lieu of an existing airport .
    • UDF is not levied and collected under the Airport Authority of India Act but under Rule 89 of the Aircraft Rules, 1937. Under the Aircraft Rules, UDF may be levied and collected by either the AAI or the private operator.
    According to the Airport Economic Regulatory AuthorityUDF is levied to ensure that the airport operators can get a fair return on their investments.

    What is the role of the Airport Economic Regulatory Authority
    • was established to regulate aeronautical tariffs.
      • determining the amount of DF and UDF for major airports.
        • In case of non-major airports, the UDF shall be determined by the central government.
            RECENT :----- What has been the role of the Supreme Court?
            • In 2009, the central government permitted the Mumbai and Delhi Airports to levy a DF.
              • The rate of was prescribed by the central government and not by AERA.
                • In 2011, the Supreme Court held that this levy of DF was illegal.  
                  • The Court based its decision on two grounds.
                    • Firstly, the court held that the rate of DF has to be determined by the AERA and not the central government.
                    •  Secondly, the Court held that the power to levy the fee lies with the Airport Authority as the development fee can only be utilised  for the performance of the purpose specified in the Act.
                Can private operators collect a development fee and a user development fee?
                • In 2003, the government amended the Airport Authority of India Act to allow the AAI with the prior permission of the central government to
                  • (i) to lease the premises of airports to private entities to undertake some of the functions of the AAI; 
                  • (ii) levy and collect a development fee on the embarking passengers at a rate that may be prescribed.

                --

                Afghanistan: Between Hope and Despair





                Afghanistan: Between Hope and Despair


                • The current US-led international military presence in Afghanistan completed 11 years on October 7, 2012.
                • the longest military engagement in US history, surpassing even the Vietnam War, and is costing US taxpayers nearly $100 billion per year, a sum roughly six times larger than Afghanistan's annual gross national product of around $18 billion.
                • Already, 30,000 US troops have been de- inducted as part of the declared drawdown plan. French troops too are scheduled to leave by December, and 2013 is scheduled to witness a steady withdrawal of combat troops from other countries as well.
                • the Afghan National Security Forces (ANSF), efforts aimed at their build-up and capacity-building have been marred by hindrances, to say the least
                • a new trend witnessed this year was 'Green on Green' attacks, wherein Afghan troops have committed fratricide and killed their comrades. Already 53 have died in 35 such incidents this year.

                Taliban, on the other hand, remain resilient
                  • Though the international forces were successful in diluting the Taliban's hold in their heartland of Helmand and Kandahar, the latter have expanded elsewhere in the North and West.
                  • Their ability to conduct spectacular strikes remains intact and they have been able to penetrate the fortress of security, i.e., Kabul, with impunity.
                • Governance issues continue to plague the Karzai administration with 
                  • corruption,
                  •  non-delivery of public services and 
                  • security remaining the major concerns.

                • Recent high profile attacks :  insecurity and instability.
                • The assassination of governorsdistrict and provincial police chiefs and 
                • High Peace Council members including its chairman Burhanuddin Rabbani in September 2011 and 
                • another member Arsala Rahmani in May 2012 have added to the overall sense of insecurity and instability.
                • Phase 3 was announced in May 2012 after which more than half of Afghanistan and two thirds of the population would be under Afghan government control.

                • Despite the gloom and despair, some remarkable developments have indeed taken place in Afghanistan since 2001 and especially after 2007.
                  • Education and health services have grown by leaps and bounds
                  • Trade has multiplied manifold, mineral and oil wealth have been discovered
                  • thanks to the internet and technology, general awareness among the population has increased.
                • There is a prominent youth bulge and the youth are aspiring to better things in life and have no appetite for civil war.

                • Women are seen more and more in the public arena with increased participation in all fields of life.
                • Afghan parliament today has the largest number of women legislators in the region with 69 MPs constituting 28 per cent of the total seats, a figure larger in percentage and numbers than in India (60 MPs and 11 per cent).
                • social and economic indicators too point in the positive direction. Health services have improved manifold as reflected in the 2012 report "Save the Children's 'Mothers' Index".
                  • The infant mortality rate is at 106 per 1,000 births, much better than 257 in the 1990s.
                  • The number of children attending school is now 7.1 million out of a total population of 26.5 million.
                  • During Taliban rule, girls were not permitted to attend school, but now an estimated 2.7 million girls attend school.

                • As compared to only one Ariana Afghan Airlines in 2001, there are now eight foreign airlines operating from Afghanistan and the number would only grow.

                • With 2012 almost gone, there is just about over a year left for Afghans before the international combat mission in Afghanistan ends
                • As the Afghans and the world look towards a new dawn on 1 January 2015, there are some things that stand out clearly and have to be recognised by both the Afghans as well as the international community.
                • Challenges
                  • Afghanistan cannot be expected to be transformed into a modern state by 2014. It is a process that will be long drawn with numerous hurdles and setbacks.
                  • Taliban is a phenomenon that cannot be wiped out from the map of Afghanistan. Somewhere and in some form, they would need to get integrated into Afghan politics, society and even government.
                  • Taliban is no longer as monolithic, cohesive and influential as it was in the late 1990s. There are frequent reports of fissures within the leadership as well as discontent among lower and mid-level cadres. Mullah Omar too has sounded reconciliatory notes in his traditional Eid address. It is therefore unlikely that the Taliban can ride to power as in the 1990s.
                • Afghans have to learn to accept the country's geography. Given the country's geostrategic location in the region, external influences will remain and a way has to be found to govern Afghanistan.
                • Pashtuns cannot be seen as the sole representatives of Afghanistan. Given the presence of three other major ethnic tribes, i.e., Tajik, Uzbek and Hazara, a sense of mutual acceptance and co-existence has to develop to overcome internal differences.

                • Given the geopolitical payoffs of remaining in Afghanistan, the United States is unlikely to leave Afghanistan soon. The combat mission may end, but there are likely to be substantial military equipment, assets, intelligence mechanisms and approximately 25,000 troops in a training and advisory role.
                • Finally, too many Afghans have been exposed to the fruits of modern life during the past decade. Education, health care and increased awareness will not let them succumb to the traps of a Taliban-like movement again soon.

                Post-2014 Scenarios

                • Afghanistan's scenarios after 2014 are more dependent upon developments between 2012 and 2014, than developments post-2014. Therefore, any scenario will depend upon the following crucial factors
                • the success of stabilization efforts by 2014, the nature of the engagement of US and other international forces in Afghanistan post 2014,
                • strengthening of ANSF and other institutions
                • last, but not the least, Pakistan's game plan. 2014 also presents another interesting problem.
                • integration of the Taliban into the political system
                • The Afghan Presidential elections in August-September 2014 will coincide with the withdrawal of all international combat troops by December 2014. With Karzai ineligible for a third term and no clear alternative on the horizon, the December 2014 deadline could be a huge political gamble.


                Afghanistan today stands at a crossroads. Most of the issues have to be thought over, debated and resolved by the Afghans themselves, the most important of these being developing a climate of mutual acceptance and space between various ethnic groups and stakeholders.


                --

                Sunday, January 13, 2013

                The crisis in Somalia


                The crisis in Somalia

                Short Country Profile

                Full Country Name: Somali Democratic Republic
                Area: 637,657sq km
                Population: 9.36 million (2010 UN estimate)
                Capital City: Mogadishu
                People: Somali (85%), Bantu, Arabs
                Languages: Somali (official), Arabic, Italian, English
                Religion: Sunni Muslim
                Currency:  Somali shilling.  Although there is no central bank, various currencies are used. The self declared Republic of Somaliland has its own currency, the Somaliland shilling.
                Government: The Transitional Federal Government (TFG) was formed in July 2005. Sheikh Sharif Sheikh Ahmed was appointed President of the TFG in January 2009.  Regional governments exist in Somaliland and Puntland.
                A short history

                Somalia is a country that has experienced excessive amounts of political instability during the past decade. Somalia, like most other countries in Africa, was colonized by European nations during the late 1800s. In 1887, Britain became concerned with keeping the route to India open through the Suez Canal, which was opened in 1869 and as a result Britain proclaimed Somalia as a British protectorate and named it British Somaliland.

                In the beginning of the 20th century British control of British Somaliland was challenged by native uprisings. In 1910 the British abandoned the interior of Somaliland and withdrew to the coastal regions. Italy seized the opportunity to extend its control inland and took over many of the regions that the British had abandoned.

                In the aftermath of W.W.II, Italy was forced to relinquish its possessions in Africa and control of Somalia was given to the United Nations and for 10 years it was a UN trust territory under Italian administration until July 1, 1960 when Somalia was granted independence and it merged with the former British protectorate of Somaliland.

                Somalia's transformation into an independent state was peaceful in the beginning but is soon erupted into a violent conflict. In 1969 Abdi Rashid Ali Shirmarke, Somalia's second President, was assassinated and in the following days a military coup, led by Major General Muhammed Siyad Barre, gained control of the country. In 1970 Barre declared Somalia to be a socialist state.

                Armed domestic opposition to Siyad Barre arose in 1988 in the Northern part of the country. The Somali National Movement (SNM), the United Somali Congress (USC), and the Ogadeni Somali Patriotic Movement (SPM) joined forces to fight against Siyad Barre's government.

                In 1990 as Barre began to lose control of the country, the local political and business figures came together to sign the Mogadishu Manifesto, calling for Barre's resignation.

                Ethnic problems

                Prior to the civil war that occurred in Somalia in 1991, the country appeared to be one of the most homogeneous countries in Africa. The majority of people in Somalia are ethnic Somalis who speak dialects of the same language and practice the same religion. However, a multitude of ethnic and cultural divisions exists within the country. The practice of Islam varies nationwide, and has over the years, been influenced by different aspects of Arab culture.

                Somalia has a significant number of ethnic and economic minority groups. People of Bantu descent tend to live in farming villages and in the southern part of the country. Individuals of Arab descent and other non-African immigrants tend to reside in the coastal cities, such as Mogadishu.

                Among Somalis, a primary division exists between the Samaale and the Sab.

                • The Samaale are the majority of the Somali people and consist of four main clan families the Dir, Isaaq, Hawiye, and Daaroodeach which is further divided into sub-clans. The Samaale are primarily of nomadic origin and live throughout Somalia and in Ethiopia, Kenya, and Djibouti.
                • The Sab consist of two clan families, the Digil and Raxanweyn, located primarily in southern Somalia, where they combine farming and herding and are more likely than the Samaale to be sedentary.

                Current status

                Somalia has not had a central government since President Siad Barre fled in 1991, leaving the country at the mercy of its numerous warring factions and where clan or Islamic Shari'ah law rule.

                Owing to continuing unrest in the south, a central government is unlikely to evolve soon.

                somaliaA decentralized central federation of regional political entities has emerged (see map), including the self-proclaimed but unrecognized Republic of Somaliland in the northwest, the self-proclaimed Puntland State in the northeast, Jubaland in the south near Kismayo, and a future Banadir regional administration around Mogadishu when warlords Hussein Aideed (son of late General Farah Aideed) and Ali Mahdi settle their differences.

                The lack of a centralized state has been a boon for Somaliland and Puntland, as the absence of the corruption and repression that characterized the previous government has facilitated local economic activity.

                The presence of few regulations, nominal taxation, and negligible price controls has encouraged the establishment of many new businesses; but the stability in these areas is indeed less, and entrepreneurs remain vulnerable to theft and violence. This risk is much greater in the unstable southern and central portions of the country, in which domination by clan militias, banditry, and looting make the free movement of people, goods, and services nearly impossible.

                Somalia as a sea piracy hub

                Piracy off the coast of Somalia has been a threat to international shipping since the second phase of the Somali Civil War in the early 21st century. Since 2005, many international organizations, including the International Maritime Organization and the World, have expressed concern over the rise in acts of piracy

                Piracy has impeded the delivery of shipments and increased shipping expenses, costing an estimated £10 billion a year in global trade. According to the German Institute for Economic Research (DIW), a veritable industry of profiteers has also risen around the piracy. Insurance companies, in particular, have profited from the pirate attacks, as insurance premiums have increased significantly.

                 A United Nations report and several news sources have suggested that piracy off the coast of Somalia is caused in part by illegal fishing.  According to the DIW and the U.S. House Armed Services Committee, the dumping of toxic waste in Somali waters by foreign vessels has also severely constrained the ability of local fishermen to earn a living and forced many to turn to piracy instead. 70 percent of the local coastal communities "strongly support the piracy as a form of national defense of the country's territorial waters", and the pirates believe they are protecting their fishing grounds and exacting justice and compensation for the marine resources stolen.

                International efforts to solve the Somalia issue

                The World leaders, in recent London Conference on 23rd February, 2012, have pledged to boost support for measures to fight piracy, terrorism and political instability in Somalia.

                At the start of the conference, President Sheikh Sharif Ahmed, leader of the transitional government, said Somalis wanted to shake off horrendous memories of the past, but feared the gathering might be just another diplomatic talking exercise.

                Representatives from many Somali factions attended the London conference, but Al-Shabab was not invited as the militant group denounced the London conference as another attempt to colonize Somalia.

                US Secretary of State Hillary Clinton said the world must keep Islamist militant group Al-Shabab on the run which controls large swathes of territory and they have recently joined with al-Qaeda. The USA has ruled out talks with Al-Shabab, saying that its decision to join forces with al-Qaeda showed that it was not on the side of peace, stability or the Somali people. However, the USA added that the international community was ready to engage with anyone willing to renounce violence and embrace the peace process.

                The UK Prime Minister David Cameron, hosting the conference, said setting up an inclusive government was vital to the country's future, and that it must work alongside AU military action.

                The conference agreed for more humanitarian aid, support for African Union peacekeepers and better international co-ordination. In a final communique, the 55 countries and organisations gathered in London said they would:

                • Back the handover of power from the transitional government to an inclusive administration by August
                • Provide more support for African Union peacekeepers
                • Better co-ordinate humanitarian aid, shifting focus to long-term needs
                • Crack down on piracy by expanding on agreements to bring suspects to trial in countries away from Somalia

                India's role

                India's stand on the Somali crisis is that the solution should be Somali-owned and supported by the Somali institutions. Any imposition of external solutions will not work in the long run.

                Pirates now cover a geographical area of roughly 2.8 million square miles and safety and security of seafarers remains a matter of very serious concern. To address this issue, there is a need for effective international cooperation.

                India also supports the strengthening of the national and regional capacity in the drafting of national anti-piracy legislation, and towards the investigation, prosecution and sentencing of suspected pirates.

                The future outlook

                For the first time in years, there is a real chance to make progress in Somalia. The Islamist militants were forced out of Mogadishu last year, and are under pressure from Kenyan, Ethiopian and Somali government troops elsewhere.

                On 22nd February, 2012, one day prior to the London Conference, Ethiopian and Somali troops took control of the strategic stronghold of Baidoa, in the south-west of the country, from Al-Shabab.

                Al Shabaab is militarily weakened and increasingly on the back foot, pushed out of Mogadishu by African Union forces. A fragile peace process is making progress. And there is growing international will to stamp out piracy.

                The goals of the London Conference are wide-reaching, but also practical and implementable. World's nations are focusing on both the underlying causes of instability and its symptoms, such as famine, piracy and terrorism. Their hope is to reach agreement on: injecting new momentum into a political process that will create a more transparent and representative government that is better able to provide development and security for its people; strengthening the African Union peacekeeping mission in Somalia; building stability at the local level through humanitarian aid and economic development; and tackling the piracy and terrorism that threatens to destabilize the Horn of Africa.

                Ultimately decisions on Somalia's future rest with the Somali people. The role of the international community is to facilitate Somalia's progress and development, with unity and coordinated support to Somalia.

                The goals of International powers are ambitious, but realistic. They know these goals can't be achieved overnight and certainly not without international cooperation. It will be a remarkable progress when coordinated leadership takes firm steps in making a reality of their shared vision of a more stable Somalia.