Baghdad in disarray

The blast in Baghdad, which killed more than 200 people, is the latest, and the deadliest, in a string of attacks carried out by terrorists around the world during Ramzan. The Islamic State has boastfully claimed responsibility for the attack thatoccurred in front of a Shia mosque in one of the busiest commercial areas in the heart of the Iraqi capital. The carnage comes weeks after Iraqi troops, under American air cover and assisted by Iran-trained Shia militias, defeated the IS in Fallujah, one of the first cities it had captured in Iraq in early 2014. The loss of Fallujah is a big blow to the so-called Caliphate, whose territory has been shrinking over the past year in a series of military setbacks. In fact, Iraqi troops are now preparing for the final battle in Mosul, Iraq’s second largest city from where Abu Bakr al-Baghdadi declared the Caliphate two years ago. But these military setbacks haven’t done anything to blunt the ability of the IS to stage major terror attacks, as the latest violence shows. Secondly, by targeting Shias, the IS is trying to deepen Iraq’s sectarian wounds. In an online statement claiming the Baghdad bombing, the group clearly stated that it targeted a Shia gathering. In 2006, the leader of al-Qaeda in Iraq, Abu Musab al-Zarqawi, had led a series of attacks on Shias that triggered a civil war between the two dominant communities. This sectarian tension helped the IS capture Mosul in 2014.

The attack, moreover, highlights the worsening security situation in Baghdad. Despite repeated protests and international warnings, the Iraqi government is simply not able to provide basic security to its citizens. If in other global cities terror is an irregular threat, Iraqis live dangerously in its shadow every day. The problems Iraq faces today are partly structural. It never completely recovered from the American-led invasion of 2003 which destroyed the state and threw society into anarchy. One reason the IS machinery became so strong in Iraq is that many battle-ready Saddam-era generals, who had lost their jobs after the Americans disbanded the Iraqi military, joined its ranks. But the Iraqi leadership also must bear responsibility for the current mess. If former Prime Minister Nouri al-Maliki was viewed with suspicion by Sunnis for his sectarianism, the incumbent, Haider al-Abadi, is seen to be too incompetent to be a wartime Prime Minister. He has not been able to implement even the promised reforms, and this has virtually stalled governance, helping jihadists exploit the security gaps in the big cities. Iraq needs a stable, inclusive administration that takes care of the basic needs of its people while at the same time fighting terror. It is a tall order, but Iraq today doesn’t have the luxury of time or choice.

Sunny times for solar

The World Bank’s agreement with the India-led International Solar Alliance (ISA) to help it mobilise a trillion dollars in investments by 2030 and its billion-dollar programme to support Indian initiatives for expanded solar generation are significant steps in the global transition to a clean energy pathway. While the cost of solar power has been declining, one of the biggest obstacles to a scale-up in developing countries has been the high cost of finance for photovoltaic projects. That problem can be addressed by the ISA through the World Bank partnership, as the agreement will help develop financing instruments, reduce hedging costs and currency risks, and enable technology transfer. India has raised its ambitions five-fold since the time it launched the National Solar Mission, and the target now is an installed capacity of 100 gigawatts by 2022 out of a total of 175 GW from all renewables. Strong policy support is also necessary to improve domestic manufacture of solar cells and panels, which has remained unattractive because cheap imports are available. India’s efforts have also suffered a setback, with the adverse WTO ruling against the stipulation of a prescribed level of domestic content for solar projects. Developing a strong solar manufacturing industry is essential for sustained economic growth, and to connect those who never had the boon of electricity.

Support from the World Bank for large-scale and rooftop solar deployments, innovative and hybrid technologies, and storage and transmission lines presents an opportunity for India to go the German way and achieve energiewende, or energy transition. For instance, the $625-million grid-connected rooftop solar fund could help strengthen State-level programmes for net metering. A transparent regime that enables individuals and communities to plug into the grid without bureaucratic hurdles would unlock small-scale private investment. There are several pointers from Germany’s experience as a leading solar- and wind-powered nation to prepare for a major ramping up of these green sources. Arguably, the strength and reliability of a power grid capable of handling more power than is available are fundamental to induct higher levels of renewable power. The emphasis here must also be on improving transmission lines: the World Bank programme promises to provide the necessary linkage to solar-rich States. Making power grids intelligent to analyse and give priority to use the output of renewables, accurately forecast the weather to plan next day generation, and viability mechanisms for conventional coal-based plants are other aspects that need attention. Innovation in battery technology is a potential gold mine for the solar alliance and for India to exploit.

Heeding the 24x7 potential

Removing regulatory barriers to employ more people in various areas of economic activity is a national priority, and the Centre’s Model Shops and Establishments (Regulation of Employment and Conditions of Service) Bill, 2016 to enable operation of such services all 365 days of the year, and round-the-clock, is a significant step forward. As the Economic Survey for 2015-16 notes, there is a robust annual growth in services such as trade, hotels, transport and communications. Creating a healthy environment for the growth of consumer-focussed services will catalyse it further. The model law, which is available to the States to either adopt fully or in a modified form, is to be welcomed for specifying labour issues such as working hours, overtime, casual and earned leave, protection for women including transport access for those opting to work night shifts, and workplace facilities. It is all too evident that in the existing regulatory regime, many of these aspects are impressively inked on paper, but with poor outcomes in practice. Workers are left without effective mechanisms of redress. In the model law, protections are to be enforced by a cadre of Chief Facilitators and Facilitators. This is a moment to strike a blow for the rights of workers, and State governments must show as much concern for labour welfare as the facilitation of business. The Labour Ministry can achieve this by welcoming online registration of complaints, and the process can be aided by trade unions.

There is much to welcome in the model law; its major innovation is the elimination of the licensing bureaucracy, and therefore a lot of corruption. A simplified, online common registration procedure for the businesses covered by the Act should definitely be part of State law; this would be a big leap in ease of doing business. State governments looking to accelerate economic activity and generate higher revenues should adopt the law immediately. Two areas that need urgent reform in all States are provision of reliable public transport and strong law enforcement. Even in big cities with organised bus, rail and feeder networks, these systems are not reliable at night. The new sharing economy has been filling the gap with app-based commercial taxi services operating 24x7, but a decision to promote retail services round-the-clock requires a good, affordable public transport backbone with security arrangements to ensure safe travel. One other aspect of reform to support employees of shops and establishments is health care. It should be mandatory for employers to cover their medical expenses through standalone or group insurance policies, since private health insurance is generally unaffordable to such workers.

Sri Lanka must stay the course

The frequent human rights updates in Geneva provide an occasion for the world to discuss Sri Lanka’s post-war situation, especially the progress made in investigating the excesses during the last phase of the civil war that ended in 2009. Until last year, the country considered the process hostile and inimical to its interests. Now, with a new government in Colombo, there has been constructive engagement with the international community and Sri Lanka says it is looking for ways to implement a unanimous resolution adopted by the UN Human Rights Council in October 2015. The UNHRC has tried to nudge Sri Lanka towards rebuilding civilian livesthrough resettlement, reducing the military presence in the north and east, and delivering accountability for past crimes through a credible judicial process with international participation. However, the update presented by High Commissioner Zeid Ra’ad al-Hussein in Geneva does not present an encouraging picture. He expressed concern about the “heavy military presence” in Tamil areas, noting that the process of the military returning land to its civilian owners has been tardy. There is a lack of urgency in coming up with tangible measures to build confidence among minorities and victims of human rights violations. In turn, Foreign Minister Mangala Samaraweera has informed the ongoing session in Geneva that the government has instructed the military to release by 2018 all civilian land it holds. He has promised that the proposed judicial mechanism will inspire confidence among the stakeholders, but has drawn attention to the “divergent views” in the country on it, perhaps a hint of further delay.

Sri Lanka went through a democratic transition in 2015 when it elected Maithripala Sirisena as President, ending the 10-year reign of Mahinda Rajapaksa, which was marked by post-war triumphalism and a disregard for the plight of ethnic minorities. Later, the parliamentary election led to a national unity government that promised good governance, economic revival, and transitional justice for the war-affected. But even today the High Commissioner has reason to be anxious that those promises are at risk. The road was not expected to be smooth for Sri Lanka when it embarked on an ambitious effort towards national reconciliation and accountability. But the government is frittering away energy and time on political controversies, the row over the appointment of a new Central bank governor being an example. Having set in motion the process for a new Constitution and measures for reconciliation and reform, any loss of momentum now on the part of the government will result in a loss of credibility.