A top European Union official has warned against travel to areas hit by an outbreak of swine flu, amid growing concern over the spread of the virus.
Experts suspect it has killed more than 100 people in Mexico. Cases have also been found in Canada, the US and on Monday in Spain.
At least five other nations are testing patients for possible swine flu.
President Barack Obama said the cases in the US were a cause for concern but not alarm.
World Health Organization experts are meeting later to discuss the global threat posed by the virus.
The UN has warned that the virus has the potential to become a pandemic. But it says the world is better prepared than ever to deal with the threat.
SWINE FLU
Swine flu is a respiratory disease thought to spread through coughing and sneezing
Symptoms mimic those of normal flu - but in Mexico more than 100 people have died
Good hygiene like using a tissue and washing hands thoroughly can help reduce transmission
The EU has called an emergency meeting of health ministers to discuss the situation and European Commission President Jose Manuel Barroso said he was monitoring the situation closely.
EU Health Commissioner Androulla Vassiliou said people should avoid travelling to virus-hit parts of Mexico and the US unless it was "very urgent".
On Sunday, Mexican Health Secretary Jose Angel Cordova said suspected swine flu cases in his country had risen to 1,614.
Of the 103 deaths in Mexico, only 20 are so far confirmed to have been caused by the new virus.
There are 20 confirmed cases in the US, six in Canada and one in Spain, the first case in Europe. In most cases outside Mexico, people have been only mildly ill and have made a full recovery.
In other developments:
• Tests are also being carried out on individuals or groups in New Zealand, Australia, Brazil, Britain and Israel who fell ill following travel to Mexico
• A top US health official has warned that there could be "more severe cases" to come
• Shares in airlines have fallen sharply on fears about the economic impact of the outbreak
'Evolving picture'
Health experts say the virus comes from the same strain that causes seasonal outbreaks in humans. But they say this newly-detected version contains genetic material from versions of flu which usually affect pigs and birds.
FLU PANDEMICS
1918: The Spanish flu pandemic remains the most devastating outbreak of modern times - infecting up to 40% of the world's population and killing more than 50m people, with young adults particularly badly affected
1957: Asian flu killed two million people. Caused by a human form of the virus, H2N2, combining with a mutated strain found in wild ducks. The elderly were particularly vulnerable
1968: An outbreak first detected in Hong Kong, and caused by a strain known as H3N2, killed up to one million people globally, with those over 65 most likely to die
Swine flu: Your experiences
There is currently no vaccine for this new strain, but severe cases can be treated with antiviral medication.
Dr Keiji Fukuda, the WHO's assistant director-general in charge of health security, said all countries were "looking at this situation very seriously".
"But it's also clear that we are in a period in which the picture is evolving... [and that] we have to be very careful to collect the best possible information," he said.
The WHO is advising all countries to be vigilant for seasonally unusual flu or pneumonia-like symptoms among their populations - particularly among young healthy adults, a characteristic of past pandemics.
Most of those who have died so far in Mexico were young adults.
A top US health official warned that there could be worse to come.
"From what we understand in Mexico, I think people need to be ready for the idea that we could see more severe cases in this country and possibly deaths," Richard Besser, acting head of the US Centers for Disease Control and Prevention, told ABC television.
President Obama described the situation as "obviously a cause for concern" that "requires a heightened state of alert", but added "it is not a cause for alarm".
He told a meeting of scientists that a public health emergency - declared after cases were found in New York, California, Texas, Kansas and Ohio - was a "precautionary tool" to ensure that all the necessary resources are available "to respond quickly and effectively".
Screening
Countries across the world are taking measures to prevent the spread of the virus.
In the Mexican capital schools, bars and public buildings remained closed and many people were staying indoors.
The BBC talks to people in Mexico City about the flu outbreak.
In pictures
Soldiers handed out six million masks in and around the capital region, where the outbreak is centred.
In Canada, cases were recorded at opposite ends of the country, in British Columbia and in Nova Scotia, while in Spain, a young man who had recently returned from Mexico was found to have the virus. He was said to be in a stable condition.
A number of countries in Asia, Latin America and Europe have begun screening airport passengers for symptoms, while Germany's biggest tour operator has suspended trips to Mexico.
Several countries have banned imports of raw pork and pork products from Mexico and parts of the US, although experts say there is no evidence to link exposure to pork with infection
Monday, April 27, 2009
Sunday, April 26, 2009
After Off Year, Wall Street Pay Is Bouncing Back
The rest of the nation may be getting back to basics, but on Wall Street, paychecks still come with a golden promise.
A Survivor of the Financial Crisis: Pay Levels at Investment Banks Readers' Comments
Readers shared their thoughts on this article.
Read All Comments (199) »Workers at the largest financial institutions are on track to earn as much money this year as they did before the financial crisis began, because of the strong start of the year for bank profits.
Even as the industry’s compensation has been put in the spotlight for being so high at a time when many banks have received taxpayer help, six of the biggest banks set aside over $36 billion in the first quarter to pay their employees, according to a review of financial statements.
If that pace continues all year, the money set aside for compensation suggests that workers at many banks will see their pay — much of it in bonuses — recover from the lows of last year.
“I just haven’t seen huge changes in the way people are talking about compensation,” said Sandy Gross, managing partner of Pinetum Partners, a financial recruiting firm. “Wall Street is being realistic. You have to retain your human capital.”
Brad Hintz, an analyst at Sanford C. Bernstein, was more critical. “Like everything on Wall Street, they’re starting to sin again,” he said. “As you see a recovery, you’ll see everybody’s compensation beginning to rise.”
In total, the banks are not necessarily spending more on compensation, because their work forces have shrunk sharply in the last 18 months. Still, the average pay for those who remain — rank-and-file workers whose earnings are not affected by government-imposed limits — appears to be rebounding.
Of the large banks receiving federal help, Goldman Sachs stands out for setting aside the most per person for compensation. The bank, which nearly halved its compensation last year, set aside $4.7 billion for worker pay in the quarter. If that level continues all year, it would add up to average pay of $569,220 per worker — almost as much as the pay in 2007, a record year.
“We need to be able to pay our people,” said Lucas van Praag, a spokesman for Goldman, adding that the rest of the year might not prove as profitable, and so the first-quarter reserves might simply be “sensible husbandry.”
Indeed, last year, when Goldman lost money in the fourth quarter, it did not pay out some of the compensation it had set aside when earnings were stronger.
At other banks, pay scales tilt in favor of particular units. JPMorgan Chase, for example, is setting aside what would total $138,234 on average for workers. But in the bank’s trading and investment banking unit, if revenue stays at first-quarter levels, workers are on track to earn an average of $509,524 over the year. That figure was $345,147 in 2006.
To try to blunt criticism of high pay, some banks have introduced reforms to take back bonuses from individual workers whose bets later lose money. Moreover, executives say that for many well-paid bankers, a good portion of their bonus compensation is in stock, whose value can decline if the performance of the bank lags.
Representatives of several of the largest banks said much of their compensation budget covered expenses other than bonuses, like salaries, health care, pension plans and severance.
Still, the compensation expense is the only publicly disclosed figure related to pay at the banks, and it is the best figure for calculating pay per worker.
This expense includes money for year-end bonuses. For high earners, bonuses can account for three-quarters of pay.
Compensation is among the most cited causes of the financial crisis because bonuses were often tied to short-term gains, even if those gains disappeared later on. Still, as profits return, banks do not appear to be changing the absolute level of worker pay — or the share of revenue dedicated to compensation.
Historically, investment banks have paid workers about 50 cents for every dollar of revenue. The average is lower at commercial banks like JPMorgan Chase and Bank of America, because they employ more people in retail branches where pay is lower.
But every dollar paid to workers is a dollar that cannot be used to expand the business or increase lending. Some of that revenue, too, could be used by bailed-out banks to pay back taxpayers.
Wall Street, of course, has a long history of high wages. Not all that long ago, most investment banks were private partnerships, and the workers were also typically the owners. Even when those firms began listing their shares on public stock exchanges, a standard was set in which half of their revenue was paid out to workers.
Their argument is that such lofty pay retains the best employees, who help earn more money, ultimately benefiting shareholders. The set-asides in the first quarter for pay can also help raise morale within the banks.
Some shareholders, however, contend that the earnings pie should be reapportioned. They argue that shareholders have lost a lot of wealth as bank stocks spiraled, so as revenue picks up, more money should be returned in the form of dividends.
“The money should go to shareholders,” said Frederick E. Rowe Jr., a member of the pension board in Texas and the president of Investors for Director Accountability, a nonprofit group. “The fact that the compensation as a percentage of revenue has not gone down is an indication that the root problem has not been addressed.”
Some analysts point to Morgan Stanley as an example of the compensation conundrum. The bank had a dismal quarter, losing $578 million, but still put aside $2.08 billion for compensation. That amount, though lower than the compensation at Goldman, was 68 percent of revenue.
Mr. Hintz, the analyst, said the bank could have avoided losing 57 cents a share if it had reserved less revenue for compensation.
In an interview, Colm Kelleher, Morgan Stanley’s chief financial officer, said the compensation set-aside was based on the bank’s full-year earnings expectations, not just the first quarter. And Morgan could drop its compensation expense only so low, he said, because much of it consists of fixed expenses, like salaries.
“The number of fat cats making loads of money is much less than you think,” he said.
If shareholders do not like compensation policies at banks, they can simply sell their shares. Still, several banks cut bonus pools last year, as losses mounted. And the government is restricting certain pay at banks that received bailout money.
The rule, which applies only to the most highly paid workers, has prompted some banks to try to return the government money as fast as possible.
Executive recruiters in the sector say prospective recruits are still being offered pay packages on par with those of earlier recruits. Some banks that received taxpayer help are even offering guarantees to recruit workers.
Part of the way banks are supporting high pay for their workers is by shrinking their work forces. Citigroup, for example, has dismissed 65,000 people since the start of 2007. That has left Citigroup paying the same amount on average to its remaining workers, though the quarterly cost to Citigroup is down by 25 percent, to $6.4 billion
A Survivor of the Financial Crisis: Pay Levels at Investment Banks Readers' Comments
Readers shared their thoughts on this article.
Read All Comments (199) »Workers at the largest financial institutions are on track to earn as much money this year as they did before the financial crisis began, because of the strong start of the year for bank profits.
Even as the industry’s compensation has been put in the spotlight for being so high at a time when many banks have received taxpayer help, six of the biggest banks set aside over $36 billion in the first quarter to pay their employees, according to a review of financial statements.
If that pace continues all year, the money set aside for compensation suggests that workers at many banks will see their pay — much of it in bonuses — recover from the lows of last year.
“I just haven’t seen huge changes in the way people are talking about compensation,” said Sandy Gross, managing partner of Pinetum Partners, a financial recruiting firm. “Wall Street is being realistic. You have to retain your human capital.”
Brad Hintz, an analyst at Sanford C. Bernstein, was more critical. “Like everything on Wall Street, they’re starting to sin again,” he said. “As you see a recovery, you’ll see everybody’s compensation beginning to rise.”
In total, the banks are not necessarily spending more on compensation, because their work forces have shrunk sharply in the last 18 months. Still, the average pay for those who remain — rank-and-file workers whose earnings are not affected by government-imposed limits — appears to be rebounding.
Of the large banks receiving federal help, Goldman Sachs stands out for setting aside the most per person for compensation. The bank, which nearly halved its compensation last year, set aside $4.7 billion for worker pay in the quarter. If that level continues all year, it would add up to average pay of $569,220 per worker — almost as much as the pay in 2007, a record year.
“We need to be able to pay our people,” said Lucas van Praag, a spokesman for Goldman, adding that the rest of the year might not prove as profitable, and so the first-quarter reserves might simply be “sensible husbandry.”
Indeed, last year, when Goldman lost money in the fourth quarter, it did not pay out some of the compensation it had set aside when earnings were stronger.
At other banks, pay scales tilt in favor of particular units. JPMorgan Chase, for example, is setting aside what would total $138,234 on average for workers. But in the bank’s trading and investment banking unit, if revenue stays at first-quarter levels, workers are on track to earn an average of $509,524 over the year. That figure was $345,147 in 2006.
To try to blunt criticism of high pay, some banks have introduced reforms to take back bonuses from individual workers whose bets later lose money. Moreover, executives say that for many well-paid bankers, a good portion of their bonus compensation is in stock, whose value can decline if the performance of the bank lags.
Representatives of several of the largest banks said much of their compensation budget covered expenses other than bonuses, like salaries, health care, pension plans and severance.
Still, the compensation expense is the only publicly disclosed figure related to pay at the banks, and it is the best figure for calculating pay per worker.
This expense includes money for year-end bonuses. For high earners, bonuses can account for three-quarters of pay.
Compensation is among the most cited causes of the financial crisis because bonuses were often tied to short-term gains, even if those gains disappeared later on. Still, as profits return, banks do not appear to be changing the absolute level of worker pay — or the share of revenue dedicated to compensation.
Historically, investment banks have paid workers about 50 cents for every dollar of revenue. The average is lower at commercial banks like JPMorgan Chase and Bank of America, because they employ more people in retail branches where pay is lower.
But every dollar paid to workers is a dollar that cannot be used to expand the business or increase lending. Some of that revenue, too, could be used by bailed-out banks to pay back taxpayers.
Wall Street, of course, has a long history of high wages. Not all that long ago, most investment banks were private partnerships, and the workers were also typically the owners. Even when those firms began listing their shares on public stock exchanges, a standard was set in which half of their revenue was paid out to workers.
Their argument is that such lofty pay retains the best employees, who help earn more money, ultimately benefiting shareholders. The set-asides in the first quarter for pay can also help raise morale within the banks.
Some shareholders, however, contend that the earnings pie should be reapportioned. They argue that shareholders have lost a lot of wealth as bank stocks spiraled, so as revenue picks up, more money should be returned in the form of dividends.
“The money should go to shareholders,” said Frederick E. Rowe Jr., a member of the pension board in Texas and the president of Investors for Director Accountability, a nonprofit group. “The fact that the compensation as a percentage of revenue has not gone down is an indication that the root problem has not been addressed.”
Some analysts point to Morgan Stanley as an example of the compensation conundrum. The bank had a dismal quarter, losing $578 million, but still put aside $2.08 billion for compensation. That amount, though lower than the compensation at Goldman, was 68 percent of revenue.
Mr. Hintz, the analyst, said the bank could have avoided losing 57 cents a share if it had reserved less revenue for compensation.
In an interview, Colm Kelleher, Morgan Stanley’s chief financial officer, said the compensation set-aside was based on the bank’s full-year earnings expectations, not just the first quarter. And Morgan could drop its compensation expense only so low, he said, because much of it consists of fixed expenses, like salaries.
“The number of fat cats making loads of money is much less than you think,” he said.
If shareholders do not like compensation policies at banks, they can simply sell their shares. Still, several banks cut bonus pools last year, as losses mounted. And the government is restricting certain pay at banks that received bailout money.
The rule, which applies only to the most highly paid workers, has prompted some banks to try to return the government money as fast as possible.
Executive recruiters in the sector say prospective recruits are still being offered pay packages on par with those of earlier recruits. Some banks that received taxpayer help are even offering guarantees to recruit workers.
Part of the way banks are supporting high pay for their workers is by shrinking their work forces. Citigroup, for example, has dismissed 65,000 people since the start of 2007. That has left Citigroup paying the same amount on average to its remaining workers, though the quarterly cost to Citigroup is down by 25 percent, to $6.4 billion
Pakistan kills at least 30 militants
Pakistan launched a military operation against militants today in a district that has been covered under a controversial peace deal concluded with the Taliban, suggesting a tougher line by the government -- at least temporarily.
The military said at least 30 militants were killed, including a commander of the banned Tehrik-e-Taliban, a Pakistan umbrella group of extremists, as armed helicopters attacked their positions in the Lower Dir district.
The military action in the Lower Dir region could jeopardize the peace pact, under which the Taliban has been allowed to enforce Sharia, or Islamic law, giving it de facto authority in the Swat Valley and nearby areas.
The United States, some Pakistani lawmakers and analysts have criticized the deal, arguing that it could embolden the extremists rather than leading to genuine peace. Some of those fears appeared justified when Taliban fighters moved into the Buner district abutting Swat in recent weeks, hoping to extend their influence.
Government warnings caused the groups to retreat to Swat late last week, although militants were still on the streets when a reporter visited Saturday. Residents said they were local Taliban members.
Sunday's action may have been intended to send a signal to the Taliban. The attack was carried out in the hometown of Maulana Sufi Mohammed, an influential cleric who brokered the deal between the government and the Taliban in Swat.
Also Sunday, the remains of Polish geologist Piotr Stanczak, who was taken hostage and apparently beheaded by Taliban militants, were delivered in a casket to a paramilitary camp, Pakistani officials said.
Stanczak had been kidnapped on Sept. 28. A video released this year showed his apparent beheading, which Polish officials said they believed was authentic. His body will be handed over to Polish authorities. Despite the new military action, government officials said the peace deal remained intact. Under the agreement, Taliban militants were supposed to disarm, although by many indications this has not happened.
A statement by the military today said the Lal Qila area in Lower Dir district was fully secured after the successful operation by the Frontier Corps, a paramilitary unit.
In Islamabad, top Interior Ministry official Rehman Malik warned militants not to challenge government authority.
"Militants have no option but to lay down their arms because the government is serious about flushing them out," he told local television reporters. "Enough is enough."
Analysts said today's operation suggested that the government was now more willing to challenge the militants, although the effects of its actions might be short-lived.
The operation probably won't succeed militarily unless the government sends in significant numbers of infantry, said Tariq Rahman, a professor at Quaid-i-Azam University. And politically, he said, any gains could be temporary because Pakistani society is deeply divided on the topic of fighting Islamic militants.
"Unfortunately, in Pakistani society, there's a view that anyone who uses the name of Islam must be right," Rahman said. "If you start to see a lot of Taliban get killed, you will probably see more criticism against the army."
Today's operation, which took place in an area close to Afghanistan and the Swat Valley, a one-time tourist area, was somewhat unexpected, given that the government has in recent months appeared more interested in negotiating than confronting homegrown militants.
Television footage from the district showed helicopter gunships flying toward the mountains and soldiers guarding a road blocked with paramilitary trucks.
Malik denied that the government launched the military operation at the behest of the U.S. A military statement said the offensive in Lower Dir was carried out at the request of the provincial government and residents.
The military said at least 30 militants were killed, including a commander of the banned Tehrik-e-Taliban, a Pakistan umbrella group of extremists, as armed helicopters attacked their positions in the Lower Dir district.
The military action in the Lower Dir region could jeopardize the peace pact, under which the Taliban has been allowed to enforce Sharia, or Islamic law, giving it de facto authority in the Swat Valley and nearby areas.
The United States, some Pakistani lawmakers and analysts have criticized the deal, arguing that it could embolden the extremists rather than leading to genuine peace. Some of those fears appeared justified when Taliban fighters moved into the Buner district abutting Swat in recent weeks, hoping to extend their influence.
Government warnings caused the groups to retreat to Swat late last week, although militants were still on the streets when a reporter visited Saturday. Residents said they were local Taliban members.
Sunday's action may have been intended to send a signal to the Taliban. The attack was carried out in the hometown of Maulana Sufi Mohammed, an influential cleric who brokered the deal between the government and the Taliban in Swat.
Also Sunday, the remains of Polish geologist Piotr Stanczak, who was taken hostage and apparently beheaded by Taliban militants, were delivered in a casket to a paramilitary camp, Pakistani officials said.
Stanczak had been kidnapped on Sept. 28. A video released this year showed his apparent beheading, which Polish officials said they believed was authentic. His body will be handed over to Polish authorities. Despite the new military action, government officials said the peace deal remained intact. Under the agreement, Taliban militants were supposed to disarm, although by many indications this has not happened.
A statement by the military today said the Lal Qila area in Lower Dir district was fully secured after the successful operation by the Frontier Corps, a paramilitary unit.
In Islamabad, top Interior Ministry official Rehman Malik warned militants not to challenge government authority.
"Militants have no option but to lay down their arms because the government is serious about flushing them out," he told local television reporters. "Enough is enough."
Analysts said today's operation suggested that the government was now more willing to challenge the militants, although the effects of its actions might be short-lived.
The operation probably won't succeed militarily unless the government sends in significant numbers of infantry, said Tariq Rahman, a professor at Quaid-i-Azam University. And politically, he said, any gains could be temporary because Pakistani society is deeply divided on the topic of fighting Islamic militants.
"Unfortunately, in Pakistani society, there's a view that anyone who uses the name of Islam must be right," Rahman said. "If you start to see a lot of Taliban get killed, you will probably see more criticism against the army."
Today's operation, which took place in an area close to Afghanistan and the Swat Valley, a one-time tourist area, was somewhat unexpected, given that the government has in recent months appeared more interested in negotiating than confronting homegrown militants.
Television footage from the district showed helicopter gunships flying toward the mountains and soldiers guarding a road blocked with paramilitary trucks.
Malik denied that the government launched the military operation at the behest of the U.S. A military statement said the offensive in Lower Dir was carried out at the request of the provincial government and residents.
Depositors fancy PSU banks over multinationals
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Mahua Venkatesh, Hindustan Times
Email Author
New Delhi, April 26, 2009
First Published: 22:02 IST(26/4/2009)
Last Updated: 22:05 IST(26/4/2009)
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The global financial meltdown and a consequent wariness among customers towards foreign banks have led to a huge slowdown in their deposit base growth. The surprise winners seem to be sturdy old public sector banks, considered a safe bet in a maze of financial uncertainties.
Once considered unglamorous, public sector banks have spent the past few years dressing up their balance sheets while also picking up tricks in marketing, advertising and customer service from multinational banks.
With a history of highly organised trade unions and complaints of shoddy retail service, public sector have had a legacy of problems, but the global meltdown appears to have given them a new lease of life.
While public sector banks saw a deposit growth of 24 per cent in the previous fiscal year, 2008-09, as compared to 23 per cent in 2007-08, foreign banks saw a mere 7.8 per cent increase in 2008-09 as against 29.1 per cent in 2007-08, according to a Reserve Bank of India data.
“With most banking biggies including Citibank being affected by the global slowdown, consumers in India are turning to the PSU banks, which have gained significantly in the last few months,” a PSU bank executive, who did not wish to be quoted told Hindustan Times.
However, the economic downturn has impacted the overall deposit growth. Deposits growth decelerated to 20 per cent in 2008-09 from 22.5 per cent in the previous year. With inflation touching double-digit figures in 2008-09, PSU banks were also led to offer high interest rates on term deposits.
“Investors opted for bank deposits to park their funds especially with the uncertainty in the stock and real estate markets,” said J. M.Garg, chairman and managing director, Corporation Bank.
Though stock markets have recovered, the general belief in banking circles is that savings are expected to be parked in banks in large quantities in the next two quarters.
Bank deposits are set to see a healthy growth in the coming months, bankers say.
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Mahua Venkatesh, Hindustan Times
Email Author
New Delhi, April 26, 2009
First Published: 22:02 IST(26/4/2009)
Last Updated: 22:05 IST(26/4/2009)
The global financial meltdown and a consequent wariness among customers towards foreign banks have led to a huge slowdown in their deposit base growth. The surprise winners seem to be sturdy old public sector banks, considered a safe bet in a maze of financial uncertainties.
Once considered unglamorous, public sector banks have spent the past few years dressing up their balance sheets while also picking up tricks in marketing, advertising and customer service from multinational banks.
With a history of highly organised trade unions and complaints of shoddy retail service, public sector have had a legacy of problems, but the global meltdown appears to have given them a new lease of life.
While public sector banks saw a deposit growth of 24 per cent in the previous fiscal year, 2008-09, as compared to 23 per cent in 2007-08, foreign banks saw a mere 7.8 per cent increase in 2008-09 as against 29.1 per cent in 2007-08, according to a Reserve Bank of India data.
“With most banking biggies including Citibank being affected by the global slowdown, consumers in India are turning to the PSU banks, which have gained significantly in the last few months,” a PSU bank executive, who did not wish to be quoted told Hindustan Times.
However, the economic downturn has impacted the overall deposit growth. Deposits growth decelerated to 20 per cent in 2008-09 from 22.5 per cent in the previous year. With inflation touching double-digit figures in 2008-09, PSU banks were also led to offer high interest rates on term deposits.
“Investors opted for bank deposits to park their funds especially with the uncertainty in the stock and real estate markets,” said J. M.Garg, chairman and managing director, Corporation Bank.
Though stock markets have recovered, the general belief in banking circles is that savings are expected to be parked in banks in large quantities in the next two quarters.
Bank deposits are set to see a healthy growth in the coming months, bankers say.
Are we going through an issueless election?
Is this an issueless election? Yes, say the media and the politicians, with a sense of helpless injury. On the face of it, they seem to have a point. Clearly, the present aam aadmi pitch of the Congress does not resonate in the manner that ‘G aribi Hatao’ did. The question of black money in Swiss banks does not evoke the kind of moral angst that Bofors did. Politicians who passionately debated the Indo-U.S. deal in Parliament have realised this issue has little effect on the masses. The media has tried but failed to make the global meltdown a factor in our politics. And so, the focus on such things as the antics of Varun Gandhi and the endless, fruitless speculation on post-poll alliances.
In the run-up to this election, two issues appeared to be emerging as possible campaign issues. Pre-election polls, including the one conducted by the Centre for the Study of Developing Societies (CSDS) in January, showed that issues like the Indo-U.S. deal, Hindutva and reservations did not excite the people. These surveys showed that unemployment and price rise were overriding concerns with people cutting across classes. In India ‘price rise’ is a way of talking about the lack of purchasing power or insufficient income rather than what economists call ‘inflation.’ But the Opposition reduced this question to inflation. The Centre proved smarter and had ensured that inflation came down to a record low.
National security
The other possible election issue was national security. This has a wider appeal than the Congress was willing to initially grant. The ruling party was on the back foot on this question and the BJP seemed well positioned to exploit it. Yet, the ruling party succeeded in deflecting the issue. It moved closer to the BJP on matters of internal security. On the external dimensions of this question, the Centre knew that the Indian public tends to trust its rulers on foreign policy matters. It used deft, low key diplomatic manoeuvres to diffuse the issue.
There is no nationwide overarching theme in this election. That does not mean there are no issues. As the principal arena of political contestation has shifted to the State level, so have the major issues. The unfolding human tragedy in Sri Lanka is the latest example of one that could have serious implications for this election, but only at the State level. The same could be said of a number of issues that have come up in various States. Statehood or autonomy issues are present in Telangana in Andhra Pradesh, in the Gorkha and Rajbanshi-dominated belt in West Bengal and in the Naga dominated hills of Manipur. Some State-level issues have generated intense feelings and sometimes caused political realignment: Nandigram and Singur in West Bengal, reservations for Marathas in Maharashtra and for Gujjars in Rajasthan, and allegations of caste or communal bias in the functioning of State governments in Haryana, Gujarat and Uttar Pradesh. Elections have turned into a referendum on the State government in Punjab, Bihar, Madhya Pradesh and Chhattisgarh. Serious allegations of corruption have put the ruling parties in the dock in Andhra Pradesh, Kerala, Karnataka, Punjab and Assam, while the issue of public morality works for the ruling parties in Orissa, Rajasthan and Tripura.
Concrete issues
If we get closer to voters, we will find more concrete issues at the constituency level. As and when we read a serious constituency report, a dying genre in Indian journalism, we find a long list of local developmental issues. This would typically include the state of bijli, sadak, pani, the unfulfilled promises of the ruling party, issues of administrative high-handedness, and the economic plight of specific sections of society. These issues are rarely reflected in the national media. But they do influence election outcomes in a big way. In fact, these quotidian issues have an even greater chance of making a difference in those elections, in which real local concerns are not swept away by a national wave.
The absence of an overarching theme does not mean an issueless election. We need not feel regretful about this. It is true that national mega-issues such as Garibi Hatao are ways of highlighting State level and local problems. At the same time, national issues such as Kargil and the assassination of Indira Gandhi tend to displace local issues. On balance, if all politics is local, there is something to be said for political competition taking place around local issues — especially in a country like ours where most States are bigger than many countries in the world.
The problem is that State and local level issues championed by parties are sometimes unconnected to the most significant ground level issues. Take, for example, Salwa Judum in Chhattisgarh. Future generations will wonder how democratic India went through this electoral exercise without so much as discussing one of the worst cases of human rights violations. The ruling party as well as its rivals have joined hands in not talking about it. The media has chosen the convenient path of silence. The same can be said about the plunder of natural resources in the mineral-rich States such as Orissa, Jharkhand and Chhattisgarh. The entire political class is a party to this corporate loot and therefore does not wish to talk about it. The Muslim political elite has blocked any discussion about the plight of Pasmanda Muslims. The Dalit and OBC elite refrain from speaking up about sharing benefits of reservation with the most deprived castes within their groupings.
The disconnect
Instead of bemoaning the lack of national issues, we should be worried about this disconnect between real issues on the ground and those that get framed in political contestation. If this is what we mean by issueless elections, then there is a real and serious problem. Once we recognise the problem, we understand who is responsible for this disconnect. Responsible are the media and the political class, which protest the most about issueless elections. Serious problems do not automatically become election issues. They need to be publicised for people to take notice.
The media plays a critical role in setting the agenda for politics, but it has been systematically inattentive to some issues. Partly, this is due to the constraints of satisfying the demands of its consumers. But this is often to do with unrelated things such as cost-cutting drives, the fact that some newspapers are controlled by politicians, and the blatant selling of news space to parties and candidates. Thus, instead of uncovering the real issues and forcing politicians to confront them, the media ends up masking them.
Also, a problem becomes an election issue when political organisations highlight it to create public awareness and offer solutions to it. Most of the major political parties shy away from this difficult task. It is not that their manifestos are silent on these questions. The problem is that political parties do not wish to mobilise people on the basis of them.
Most parties tend to highlight issues that involve the least effort. This reflects a decline in the political imagination and of political judgment
experts from the Hindu
In the run-up to this election, two issues appeared to be emerging as possible campaign issues. Pre-election polls, including the one conducted by the Centre for the Study of Developing Societies (CSDS) in January, showed that issues like the Indo-U.S. deal, Hindutva and reservations did not excite the people. These surveys showed that unemployment and price rise were overriding concerns with people cutting across classes. In India ‘price rise’ is a way of talking about the lack of purchasing power or insufficient income rather than what economists call ‘inflation.’ But the Opposition reduced this question to inflation. The Centre proved smarter and had ensured that inflation came down to a record low.
National security
The other possible election issue was national security. This has a wider appeal than the Congress was willing to initially grant. The ruling party was on the back foot on this question and the BJP seemed well positioned to exploit it. Yet, the ruling party succeeded in deflecting the issue. It moved closer to the BJP on matters of internal security. On the external dimensions of this question, the Centre knew that the Indian public tends to trust its rulers on foreign policy matters. It used deft, low key diplomatic manoeuvres to diffuse the issue.
There is no nationwide overarching theme in this election. That does not mean there are no issues. As the principal arena of political contestation has shifted to the State level, so have the major issues. The unfolding human tragedy in Sri Lanka is the latest example of one that could have serious implications for this election, but only at the State level. The same could be said of a number of issues that have come up in various States. Statehood or autonomy issues are present in Telangana in Andhra Pradesh, in the Gorkha and Rajbanshi-dominated belt in West Bengal and in the Naga dominated hills of Manipur. Some State-level issues have generated intense feelings and sometimes caused political realignment: Nandigram and Singur in West Bengal, reservations for Marathas in Maharashtra and for Gujjars in Rajasthan, and allegations of caste or communal bias in the functioning of State governments in Haryana, Gujarat and Uttar Pradesh. Elections have turned into a referendum on the State government in Punjab, Bihar, Madhya Pradesh and Chhattisgarh. Serious allegations of corruption have put the ruling parties in the dock in Andhra Pradesh, Kerala, Karnataka, Punjab and Assam, while the issue of public morality works for the ruling parties in Orissa, Rajasthan and Tripura.
Concrete issues
If we get closer to voters, we will find more concrete issues at the constituency level. As and when we read a serious constituency report, a dying genre in Indian journalism, we find a long list of local developmental issues. This would typically include the state of bijli, sadak, pani, the unfulfilled promises of the ruling party, issues of administrative high-handedness, and the economic plight of specific sections of society. These issues are rarely reflected in the national media. But they do influence election outcomes in a big way. In fact, these quotidian issues have an even greater chance of making a difference in those elections, in which real local concerns are not swept away by a national wave.
The absence of an overarching theme does not mean an issueless election. We need not feel regretful about this. It is true that national mega-issues such as Garibi Hatao are ways of highlighting State level and local problems. At the same time, national issues such as Kargil and the assassination of Indira Gandhi tend to displace local issues. On balance, if all politics is local, there is something to be said for political competition taking place around local issues — especially in a country like ours where most States are bigger than many countries in the world.
The problem is that State and local level issues championed by parties are sometimes unconnected to the most significant ground level issues. Take, for example, Salwa Judum in Chhattisgarh. Future generations will wonder how democratic India went through this electoral exercise without so much as discussing one of the worst cases of human rights violations. The ruling party as well as its rivals have joined hands in not talking about it. The media has chosen the convenient path of silence. The same can be said about the plunder of natural resources in the mineral-rich States such as Orissa, Jharkhand and Chhattisgarh. The entire political class is a party to this corporate loot and therefore does not wish to talk about it. The Muslim political elite has blocked any discussion about the plight of Pasmanda Muslims. The Dalit and OBC elite refrain from speaking up about sharing benefits of reservation with the most deprived castes within their groupings.
The disconnect
Instead of bemoaning the lack of national issues, we should be worried about this disconnect between real issues on the ground and those that get framed in political contestation. If this is what we mean by issueless elections, then there is a real and serious problem. Once we recognise the problem, we understand who is responsible for this disconnect. Responsible are the media and the political class, which protest the most about issueless elections. Serious problems do not automatically become election issues. They need to be publicised for people to take notice.
The media plays a critical role in setting the agenda for politics, but it has been systematically inattentive to some issues. Partly, this is due to the constraints of satisfying the demands of its consumers. But this is often to do with unrelated things such as cost-cutting drives, the fact that some newspapers are controlled by politicians, and the blatant selling of news space to parties and candidates. Thus, instead of uncovering the real issues and forcing politicians to confront them, the media ends up masking them.
Also, a problem becomes an election issue when political organisations highlight it to create public awareness and offer solutions to it. Most of the major political parties shy away from this difficult task. It is not that their manifestos are silent on these questions. The problem is that political parties do not wish to mobilise people on the basis of them.
Most parties tend to highlight issues that involve the least effort. This reflects a decline in the political imagination and of political judgment
experts from the Hindu
World 'well prepared' for virus
The international community is better prepared than ever to deal with the threatened spread of a new swine flu virus, a top UN health chief has said.
As the UN warned the outbreak might become a pandemic, Dr Keiji Fukuda said years of preparing for bird flu had boosted world stocks of anti-virals.
Canada is the latest country to confirm cases after as many as 81 deaths in Mexico and 20 cases in the US.
Washington has warned the flu may yet claim American lives.
"I do fear that we will have deaths," Dr Anne Schuchat of the US Centers for Disease Control and Prevention told reporters.
Eight cases have been confirmed among New York students, seven in California, two in Texas, two in Kansas and one in Ohio.
Several countries in Asia and Latin America have begun screening airport passengers for symptoms.
There is currently no vaccine for the new strain of flu but severe cases can be treated with antiviral medication.
Symptom puzzle
Speaking in Geneva, an expert from the World Health Organization (WHO), the UN's health agency, expert said the swine flu virus could be capable of mutating into a more dangerous strain but that more information was needed before raising the WHO's pandemic alert phase.
SWINE FLU
Swine flu is a respiratory disease found in pigs
Human cases usually occur in those who have contact with pigs
Human-to-human transmission is rare and such cases are closely monitored
Keeping a distance in Mexico City
Q&A: Swine flu
UK monitoring swine flu outbreak
Only a handful of the Mexican cases have so far been laboratory-confirmed as swine flu, while in the US confirmed cases had only mild symptoms.
Health experts want to know why some people become so seriously ill, while others just get a bit of a cold, the BBC's Imogen Foulkes reports from Switzerland.
The WHO added that there was no evidence to suggest the outbreak was a bio-terrorist attack.
It is advising all countries to be vigilant for seasonally unusual flu or pneumonia-like symptoms among their populations - particularly among young healthy adults, a characteristic of past pandemics.
Officials said most of those killed so far in Mexico were young adults - rather than more vulnerable children and the elderly.
It is unclear how effective currently available flu vaccines would be at offering protection against the new strain, as it is genetically distinct from other flu strains.
WHO experts will meet again in Geneva on Tuesday to discuss whether to raise the pandemic alert phase.
Sick travellers
H1N1 is the same strain that causes seasonal flu outbreaks in humans but the newly detected version contains genetic material from versions of flu which usually affect pigs and birds.
FLU PANDEMICS
1918: The Spanish flu pandemic remains the most devastating outbreak of modern times - infecting up to 40% of the world's population and killing more than 50m people, with young adults particularly badly affected
1957: Asian flu killed two million people. Caused by a human form of the virus, H2N2, combining with a mutated strain found in wild ducks. The elderly were particularly vulnerable
1968: An outbreak first detected in Hong Kong, and caused by a strain known as H3N2, killed up to one million people globally, with those over 65 most likely to die
It is spread mainly through coughs and sneezes.
The Canadian cases were recorded at opposite ends of the country: two in British Columbia in the west, and four in the Atlantic province of Nova Scotia.
Suspected cases have been detected beyond Mexico, the US and Canada
Ten New Zealand students from a group which visited Mexico have tested positive for Influenza A, making it "likely" they are infected with swine flu
In France, a top health official told Le Parisien newspaper there were unconfirmed suspicions that two individuals who had just returned from Mexico might be carrying the virus
Spain's health ministry says three people who returned from a trip from Mexico with flu symptoms are in isolation and being tested
In Israel, medics are testing a 26-year-old man who has been taken to hospital with flu-like symptoms after returning from a trip to Mexico
Two people in Queensland, Australia, are being tested in hospital after developing flu-like symptoms on returning from Mexico
Mexican shutdown
The BBC's Ros Atkins dons his face mask to explore Mexico City
Officials in Mexico confirmed that 20 people had died from the virus while another 61 deaths were suspected cases of swine flu.
More than 1,300 people have been admitted to hospital with suspected symptoms since 13 April.
With Mexico City apparently the centre of infection, many people are choosing to leave the city, the BBC's Stephen Gibbs reports.
Schools, universities and even most bars and restaurants will remain closed for several days and though Sunday church services are going ahead, priests have been asked to place Communion wafers in people's hands rather than on their tongues.
There are those that are beginning to worry about the effects swine flu is having on their livelihoods and the Mexican economy in general, our correspondent says.
Not knowing exactly how the virus works and how it can be killed off creates a horrible uncertainty
BBC reader Mariana, Mexico City
Read more experiences
Send us your comments
Fear of the virus is expected to persuade many tourists to cancel their holidays and Mexican exports are already beginning to be affected.
The World Bank is providing Mexico with more than $200m in loans to help it deal with the outbreak.
Russia has banned imports of raw pork and pork products from Mexico and the US states of California, Texas and Kansas until further notice as a precaution.
Dr Fukuda said on Sunday there was no proof that eating pork would lead to infection.
"Right now we have no evidence to suggest that people are getting exposed, or getting infected, from exposure to pork or to pigs, and so right now we have zero evidence to suspect that exposure to meat leads to infections," he said.
As the UN warned the outbreak might become a pandemic, Dr Keiji Fukuda said years of preparing for bird flu had boosted world stocks of anti-virals.
Canada is the latest country to confirm cases after as many as 81 deaths in Mexico and 20 cases in the US.
Washington has warned the flu may yet claim American lives.
"I do fear that we will have deaths," Dr Anne Schuchat of the US Centers for Disease Control and Prevention told reporters.
Eight cases have been confirmed among New York students, seven in California, two in Texas, two in Kansas and one in Ohio.
Several countries in Asia and Latin America have begun screening airport passengers for symptoms.
There is currently no vaccine for the new strain of flu but severe cases can be treated with antiviral medication.
Symptom puzzle
Speaking in Geneva, an expert from the World Health Organization (WHO), the UN's health agency, expert said the swine flu virus could be capable of mutating into a more dangerous strain but that more information was needed before raising the WHO's pandemic alert phase.
SWINE FLU
Swine flu is a respiratory disease found in pigs
Human cases usually occur in those who have contact with pigs
Human-to-human transmission is rare and such cases are closely monitored
Keeping a distance in Mexico City
Q&A: Swine flu
UK monitoring swine flu outbreak
Only a handful of the Mexican cases have so far been laboratory-confirmed as swine flu, while in the US confirmed cases had only mild symptoms.
Health experts want to know why some people become so seriously ill, while others just get a bit of a cold, the BBC's Imogen Foulkes reports from Switzerland.
The WHO added that there was no evidence to suggest the outbreak was a bio-terrorist attack.
It is advising all countries to be vigilant for seasonally unusual flu or pneumonia-like symptoms among their populations - particularly among young healthy adults, a characteristic of past pandemics.
Officials said most of those killed so far in Mexico were young adults - rather than more vulnerable children and the elderly.
It is unclear how effective currently available flu vaccines would be at offering protection against the new strain, as it is genetically distinct from other flu strains.
WHO experts will meet again in Geneva on Tuesday to discuss whether to raise the pandemic alert phase.
Sick travellers
H1N1 is the same strain that causes seasonal flu outbreaks in humans but the newly detected version contains genetic material from versions of flu which usually affect pigs and birds.
FLU PANDEMICS
1918: The Spanish flu pandemic remains the most devastating outbreak of modern times - infecting up to 40% of the world's population and killing more than 50m people, with young adults particularly badly affected
1957: Asian flu killed two million people. Caused by a human form of the virus, H2N2, combining with a mutated strain found in wild ducks. The elderly were particularly vulnerable
1968: An outbreak first detected in Hong Kong, and caused by a strain known as H3N2, killed up to one million people globally, with those over 65 most likely to die
It is spread mainly through coughs and sneezes.
The Canadian cases were recorded at opposite ends of the country: two in British Columbia in the west, and four in the Atlantic province of Nova Scotia.
Suspected cases have been detected beyond Mexico, the US and Canada
Ten New Zealand students from a group which visited Mexico have tested positive for Influenza A, making it "likely" they are infected with swine flu
In France, a top health official told Le Parisien newspaper there were unconfirmed suspicions that two individuals who had just returned from Mexico might be carrying the virus
Spain's health ministry says three people who returned from a trip from Mexico with flu symptoms are in isolation and being tested
In Israel, medics are testing a 26-year-old man who has been taken to hospital with flu-like symptoms after returning from a trip to Mexico
Two people in Queensland, Australia, are being tested in hospital after developing flu-like symptoms on returning from Mexico
Mexican shutdown
The BBC's Ros Atkins dons his face mask to explore Mexico City
Officials in Mexico confirmed that 20 people had died from the virus while another 61 deaths were suspected cases of swine flu.
More than 1,300 people have been admitted to hospital with suspected symptoms since 13 April.
With Mexico City apparently the centre of infection, many people are choosing to leave the city, the BBC's Stephen Gibbs reports.
Schools, universities and even most bars and restaurants will remain closed for several days and though Sunday church services are going ahead, priests have been asked to place Communion wafers in people's hands rather than on their tongues.
There are those that are beginning to worry about the effects swine flu is having on their livelihoods and the Mexican economy in general, our correspondent says.
Not knowing exactly how the virus works and how it can be killed off creates a horrible uncertainty
BBC reader Mariana, Mexico City
Read more experiences
Send us your comments
Fear of the virus is expected to persuade many tourists to cancel their holidays and Mexican exports are already beginning to be affected.
The World Bank is providing Mexico with more than $200m in loans to help it deal with the outbreak.
Russia has banned imports of raw pork and pork products from Mexico and the US states of California, Texas and Kansas until further notice as a precaution.
Dr Fukuda said on Sunday there was no proof that eating pork would lead to infection.
"Right now we have no evidence to suggest that people are getting exposed, or getting infected, from exposure to pork or to pigs, and so right now we have zero evidence to suspect that exposure to meat leads to infections," he said.
Security forces regain control of Lal Qila
Security forces have seized control of the Lal Qila after fierce gunbatlle with militants in an ongoing operation in Lower Dir on Sunday.
According to sources, security forces have entered the Lal Qila.
On the other hand, intense firing is underway between militants and FC troops at Kala Daag and Islam Pura.
Meanwhile, ISPR said in a statement that Frontier Corps have launched operation against militants in Dir on the request of the provincial government and people.
Earlier in the day, security forces targeted suspected militants’ hideouts situated in Lal Qila and Islam Pura, killing a large number of militants, including a top commander.
While one security personnel was also martyred in the operation
According to sources, security forces have entered the Lal Qila.
On the other hand, intense firing is underway between militants and FC troops at Kala Daag and Islam Pura.
Meanwhile, ISPR said in a statement that Frontier Corps have launched operation against militants in Dir on the request of the provincial government and people.
Earlier in the day, security forces targeted suspected militants’ hideouts situated in Lal Qila and Islam Pura, killing a large number of militants, including a top commander.
While one security personnel was also martyred in the operation
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