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Economy

Is Your Neighborhood Store Safe? Amazon and Store Closings

Meena Miriam Yust

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Amazon has reached the far corners of the earth… and the highest elevations.  Delivery men venture 11,562 feet up in the Himalayas to leave a package.  While the company may serve a useful purpose in remote regions, its phenomenal growth also reveals that no town is immune from its less desirable consequences.  The online retailer’s omnipresence has been all too apparent in Chicago, New York, and London in recent months, where stores have been closing in droves.

Treasure Island Foods of Chicago, a family-owned business started by Christ Kamberos in 1963, announced at the end of September that after 55 years it was closing all remaining stores in just two weeks.  Now, the lights are out and the shadows empty shelves are all that remain, with the scent of fresh sourdough and gyros cooking on the spit only in shoppers’ reminiscences as they walk by the darkened windows.

Julia Child once described Treasure Island as “America’s Most European Supermarket.”  In my memory, it was unforgettable.  The stores always had treasure troves for every season, from delicious green picholine olives from France, to liver pâté and English Blue Stilton at Christmas, and of course, Marmite.  Not to mention exotic cookies and chocolates from all over the world: marzipan and chocolate from Switzerland and Austria, shortbread from Scotland, and crisp butter wafers from the Netherlands are a few examples.  It was a haven for special gifts during the holidays.

Treasure Island was not alone in the struggle to survive amidst food delivery apps and Amazon.  Not only were customers buying goods online, but Amazon was also shifting into the grocery market by taking over Whole Foods.  Not surprisingly, Chicago’s other local grocery chain Dominick’s closed in 2014.  The city lost one of its most beloved bakeries too in 2017 when the Swedish Bakery closed after 88 years in business.  Gone were the days of mouth-watering rum balls, Princess Torte laden with green marzipan, and toska cake.  In its final days an estimated 500 customers per day flocked in to have one last tasty treat.

Purchasing items online might be convenient but the trend has serious costs for many industries, not only food.  Retail has been hit hard.  Sears recently filed for bankruptcy and is closing 142 stores.  So did Toys R Us, shuttering its outlets last summer.  Luxury goods retailer Henri Bendel announced in September that its stores will be closing too, after 123 years.

What’s more the change is not just in the United States.  In the UK, Marks & Spencer plans to close 100 stores by 2022.  Debenhams and House of Fraser in London are also in trouble.  In March of 2018, Sweden’s H & M reported the lowest first quarter profits in more than a decade, down 62%.  When large international stores are being squeezed, one can understand how local shops are struggling to keep afloat.  A recent Atlantic article observes that Manhattan is becoming a “rich ghost town.”  So many store fronts once filled with interesting items are now empty, a trend that the author predicts will move to other cities.  Will the choices for future shoppers be restricted to chain stores and dark unrented windows?  Local small retailers unable to afford high rents are gradually being nudged out of existence.  They need help.

Could Local Currencies Save Our Neighborhood Stores?

The answer may be introducing local currencies.  Studies have shown that municipal currencies stimulate the local economy.  They serve as shock absorbers and protect in times of recession.

Switzerland has had the WIR since 1934 and Ithaca, New York introduced its own currency known as Ithaca Hours in 1991.  Ithaca Hours started out with 90 individuals who were willing to accept the currency as a payment for their work, and expanded to become one of the largest local currency systems in the U.S.  Ithaca’s example was an inspiration for municipal systems in Madison, Wisconsin, and Corvallis, Oregon.

The UK also has several local currencies including the Bristol Pound.  The former Mayor of Bristol accepted his entire salary in Bristol Pounds, and more than 800 businesses accept the local currency.

Once local currencies are in circulation, consumers can continue using their national currency to purchase from large retailers and from online giants like Amazon.  Their local currency, though, is typically used at local businesses.

As an example, were a Chicago currency implemented, consumers might use their U.S. dollars to purchase goods online but would use their Chicago currency to buy locally.  Legislators and communities could thus lend a helping hand to local gems that remain in our towns.  Lutz Cafe and Pastry Shop, for instance, established in 1948, is unique to Chicago, and creates some of the most delicious cakes in the world.

By 2003, there were over 1,000 local currencies in North America and Europe.  Yet this is a mere fraction of the total number of cities.  If local currencies expanded to a majority of towns, perhaps our beloved neighborhood stores would be able to survive the online onslaught.

The Benefits of Preserving Local Shops

Consumers lose a service every time a small shop shuts down.  A local paint store, for instance, can provide advice on what paint to use for a particular purpose, how to use it, etc.  Nowadays, in many towns, these stores have closed.  Consumers’ options are limited to buying online without input from an expert, or from a large national chain, where they will be lucky to find advice comparable to that from a specialized store.  The same holds true for many kinds of home repair.

Then there is the charm of familiar faces at the corner store.  Growing up near Treasure Island as a child, I could scarcely forget the cherry-cheeked cherub-like server at the deli counter.  After noticing this eight-year-old’s tendency to gorge on free olive samples once a week, he would always laugh heartily with those chubby cheeks and remark with a chuckle that I would end up eating all the olives before reaching the check out line.  Ordering specialty olives online is just not the same.  There may be no checkout line, but also no one to talk or joke with.  The same is true for the automated Amazon Go stores.  The nice deli server today is out of a job after decades of service.

Another hidden cost of online purchases is environmental.  Aside from fossil fuel emissions, delivery of a parcel requires packaging, and often bubble wrap, made of low-density polyethylene, a form of plastic that comprises 20% of global plastic pollution.  Reusable bags and a neighborhood store within walking distance are clearly better for the environment.

Amazon’s reach extends to places like Leh, India, high in the snow-covered Himalayas, where many of its goods may not be available in town.  And one can appreciate and understand the value of online purchases in such rural communities.  In fact that was exactly the original purpose of Sears with its iconic catalogue.

Yet in cities where one can readily buy the same items in stores nearby, we have to try to refrain from the convenience of one-click shopping.  The more we purchase online items, the more we pollute the environment and kill local stores.  Without small businesses, cities will eventually become homogenized with block after block of chain retailers, or dark empty windows, as has started to happen in Manhattan.  The character of a quaint town or a trendy metropolis becomes obsolete.

Gone will be the unique gift shops and the luxury tailor.  When the British high street becomes indistinguishable from U.S. ghost towns and when the only place to eat is a chain burger joint, the fun of traveling and the adventure of new places will be lost forever.  The vibrant world of new flavors and experiences will be no more.

So please think twice before clicking an online purchase.  You may be signing your local store’s death warrant.

Author’s note: this piece first appeared in CounterPunch.org

Meena Miriam Yust is an attorney based in Chicago, Illinois. Educated at Vassar College and Case Western Reserve University School of Law, she published a draft Migratory Insect Treaty with commentary in the Case Western Reserve Journal of International Law.

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Economy

Ports of Pakistan and Gwadar’s Potential as a Transshipment Port

Dr. Anjum Sarfraz

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The oceans play an important role in transportation of cargo in the world over, being the cheapest mode of transportation as compared to rail, road and air. According to International Chamber of Shipping, 90% of world trade is carried by 50,000 merchant ships.  It includes all types of cargo like machinery, vehicles, different types of liquids, construction material, food items, and livestock.  These ships need ports to be docked for loading and discharging of cargo. Countries having all weather deep draught ports, equipped with state of the art cranes and associated equipment to handle cargo efficiently are mammoth source of advancement of economy.

Seaports are also instrumental for generating employment opportunities through effects associated with these like crew for operations and personnel  to work in repair workshops for sea going ships and different types of  harbor vessels such of tugs, pilot boats, dredging vessels, and  different  types of other equipment .  Logistics activities such as storing, distribution, container stacking, food arrangements for employees. Personnel for inspection and custom requirements. Ports attract investors to establish industries in the vicinity to import raw material and export finished goods. It is observed that large cities are located closer to the bigger ports. Infect ports can be the real pillars of economic development of a country.

Major considerations for a port are; less adverse weather affects, bigger ships (deep draught and longer in length) can be docked, efficiently handling of loading and unloading of cargo.   In addition back yard area to handle cargo should have sufficient space. Hinterland connections should facilitate smooth flow of cargo to and from the port. Pakistan has about 1120 Km coast with three commercial ports. Karachi port was developed in 1887 and is being operated by Karachi Port Trust (KPT).  It has a total 33 berths. Out of these, three oil piers for handling liquid cargo like different types of oil, molasses etc. Ships up to 12.5 meters draught can be berthed. Out of remaining 30, three each on East and West wharves are for handling containers which have been leased to Pakistan International Container Terminal (PICT) and Karachi International Container Terminal (KICT) following Land Lord Port Policy. 

These companies install their own cranes, other equipment and have their own employees for operations. The ownership remains with the Port Authorities. Container carriers up to 11.5 m draught can be docked. Remaining berths can handle bulk carriers and other type of ships having comparatively shallow draught up to 10 meters.   The recently built extension of Karachi port has quay wall of 1500 meters which can dock mostly container ships up to 16 meter draught.  These berths have been given on lease to South Asia Pakistan Terminal (SAPT) for operations. It is a modern facility equipped with state of the art cranes and other associated equipment.  Karachi port has handled 55million tons of cargo in 2017-18, which was about 55% percent of the total cargo of Pakistan. However, this port is now in the center of the busy city Karachi, therefore cargo flow to and from the port has become very problematic. Alternate routes needs to be explored. It is suggested that a pipe line for liquid cargo from oil piers at Kemari to an appropriate location outside limits of Karachi may be constructed. From here oil tankers may load the liquid cargo for upcountry. For containerized and other cargo a separate road may be built from Karachi port to link high way. In the meantime only smaller 6 to 8 wheeler trucks may be allowed to take cargo to a separately built yard outside the limits of Karachi from where bigger trucks can take the cargo to and from up country.

The second port is Bin Qasim which is also located in Karachi. It has seven berths; ships up to 12 meters draught can be docked. It is being operated by Port Qasim Authority (PQA). It was initially built to provide iron ore to Karachi Steel Mills. Now it can handle all types of cargo including containers, oil and Liquefied Natural Gas (LNG).  In the year 2017-18 it has handled 45 million tons of cargo which was 45 % of the total cargo.  Bin Qasim port has sufficient spaces to build new berths when required. Its   connection with hinterland is not posing problems because it is located well outside the main city. These two ports are meeting the requirements to handle all types of import and export of Pakistan which is presently around 100 million tons and have capacity to meet future requirements as well.

3.The third commercial port is Gwadar which is located on the Western edge of the coast in the province of Balochistan about 533 km from Karachi. It occupies a strategic location at the entrance of Persian Gulf overlooking the Arabian Sea. It is just outside the choke point, Straits of Hormuz, where 17 million barrels of oil passes every day. In 1997 the government appointed Task Force identified this fishing harbor to be developed as a commercial port.   The project could not be started due to economic sanctions after nuclear detonation in May 1998. It started in 2002 and first phase was completed 2007.  It has 1000 meter quay wall to dock 14.5 meter draught ships. It has 3 multipurpose berths one RO – RO facility and one service berth.  First ship was docked carrying 70,000 metric tons of wheat in March 2008.   Originally it was built to supplement other two ports.

Now it has taken shape as key component of the China Pakistan Economic Corridor (CPEC).    It has been leased to China Overseas Port Holding Company (COPHC) for 40 years. It is designed to handle cargo of Chinese Western province, Xinjiang and at a later stage cargo of land lock countries, Afghanistan, Turkmenistan, Uzbekistan, and Tajikistan. Presently cargo of Afghanistan is being handled by Karachi and port Qasim. Gwadar port is ready for operation about 11 years before but it has not been operated to its optimum capacity yet. Mainly because the designed road and rail infrastructure up to Khunjerab pass has not been fully developed.  However it meets the requirements to be operated as a Transshipment Port in addition to CPEC cargo. 

The transshipment concept refers to the shipment of containers/ goods to an intermediate port before being taken to the final destination.  It plays a critical role due to infrastructure limitations in smaller sea ports and shipping lines strategies to have minimum ports of calls of their bigger ships.  Now days an average, a container is handled 3 to 4 times between the first port of loading and the final port of discharge.  The concept of transshipment operation is increasing very fast. Gwadar port because of its strategic location closer to Persian Gulf, ability to handle deep draught ships, short access channel of only 4.7 km long, comparatively low cost labor, sufficient area to stack containers and other cargo, can be equipped to operate as a transshipment port. Bigger ships coming and going to Persian Gulf, and bound for Indian Ocean littorals can discharge their cargo at Gwadar and smaller ships can take these to the ports of destination.

It is pertinent to mention that Singapore area wise is a small country, but its Port of Singapore is the world’s biggest transshipment port as well as the busiest port after Shanghai. It handled 36.6 million containers in 2018. The government of Pakistan Ministry of Maritime Affairs may consider the possibility of operating Gwadar as a transshipment port. It will certainly act as source of enhancement of economy and to provide job opportunities especially to residents of Balochistan.   

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Economy

Uber & the Neoliberal State

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Everyday in my local papers, I read stories with headlines like “Subway Ridership Dropped Again in New York as Passengers Flee to Uber.”  AMNY, in its daily Tweet compilation section, generally devotes at least half of its selections to posts bashing the subway and bus system.  In the midst of the hangover that was last week’s Uber IPO (in which it immediately lost 8% of its value), it would be appropriate to contemplate the intersection of Uber (and its ugly stepsister Lyft) and the government.

In the shadow of the Great Depression and WWII, under the Administrations of the multimillionaire Franklin Roosevelt and the no-nonsense Republican Dwight Eisenhower, the federal government invested the equivalent of football fields full of cash on infrastructure projects like the Interstate Highway System (which cost half a trillion in today’s dollars).  States and cities likewise undertook great transportation schemes.  Between the 1920s and 1960s, Robert Moses funded 413 mi. of parkways and 13 bridges for NYC through, among other things, local tolls. 

This spirit of investing in the mobility of American citizens and goods gradually died off with the rise of neoliberalism in the 1970s and 1980s; federal spending for transportation infrastructure spending has been in decline since Lyndon Johnson’s Great Society.  The sea change was most spectacularly evidenced on Oct 22 1981, when President Reagan fired and blacklisted 11,345 striking federal air traffic controllers. Cue to the present… The American Society of Civil Engineers has given America’s infrastructure a dismal grade of D+ since 2013.  Trump on the 2016 campaign trail said that, “Our airports are like from a third world country.”

Governmental abdication in regards to public transportation has created a vacuum that the private sector is now trying to fill. This is problematic for many reasons. Bereft of the full-time employee status and union membership of public transit employees, Uber and Lyft drivers, as “independent contractors”, are treated like sharecroppers, with no minimum wage or pension/healthcare plans.  Infrastructure underfunding leads to lost opportunities for construction companies and their suppliers, which costs the economy money and jobs.  Uber and Lyft, by contrast, contribute nothing to the roads, tunnels and bridges that they use, other than tolls and the income that they don’t shield via elaborate tax evasion schemes… That and a nearly threefold increase in congestion, which hurts shipping and personal drivers’ commutes. Safety laws are frequently broken by Uber and its drivers, who undergo nothing more than a basic background screening, and receive no substantive training, prior to being hired.  The secluded, close-quarters nature of the rideshare template has led to many incidences of sexual assault and harassment for drivers and riders alike (by contrast, bus and yellow-cab drivers are generally shielded from their clients by bulletproof glass).

The privatization of transit also creates a commuter caste system, in which affluent citizens can spend $20 on a quick Uber ride to work, while poorer people must rely on perpetually-delayed trains, anxiously waiting on train platforms that are often literally falling apart due to neglect.  This problem extends far beyond rideshare apps.  For years, Elon Musk has been unsuccessfully trying to sell various municipalities on the concept of the experimental hyperloop, a pricier, less efficient version of a subway.  Hyperloop trains of the future will supposedly be able to travel at 700 mph… but they can only carry 28 people at a time!  So Musk wants cities to potentially invest billions to construct underground tunnel networks that only a couple hundred people a day max would be able to use, let alone afford, considering the pricy ticket fees that would probably be necessary in order to generate electricity for the hyperloop’s futuristic maglev-vacuum operating system.  Bullet trains also operate on a maglev system, but the cost gets spread out to over a thousand customers per trip, instead of just 28.  Emulating Musk, fellow billionaire Jeff Bezos just unveiled his space exploration company Blue Origin’s lunar lander prototype.  The fact that NASA is, due to chronic underfunding, being outpaced by Blue Origin and Elon Musk’s SpaceX, is not only a national disgrace, but a matter of concern for the welfare of humanity as a whole.  If space travel becomes monopolized by a handful of billionaires, it could eventually lead to the scenario envisioned by sci-fi dystopias like Elysium, wherein only the rich will be allowed to escape our dying planet, while the poor masses are left behind.

In regards to public transportation (and many other fields), the US is quickly falling behind China.  The Middle Kingdom has over 19,000 mi. of high-speed rail (much of it built just this past decade); the US has just 2% of that total and much of it is contained to an old NYC-DC Acela line that is woefully obsolete. Eight new airports get built in China every year, meaning that China’s total stockpile of airports will double by 2035.  The last American international airport was built last century and many existing airports, like the infamous LaGuardia, are falling apart due to underfunding.  The nation famous for its cyclists also boasts the world’s largest elevated bike lane; by contrast, bike lanes are a very controversial issue in American cities, where its staunch-individualist detractors decry them as Communist plots.

This growing disparity is being fuelled by the two nation’s different appropriations models.  China realizes the importance of central planning in regards to major infrastructure projects.  Investing in high-speed rail might not be “profitable” if measured solely by ticket revenue, but it pays for itself in the long-term by spurring urban development, construction contracts and employment, and increased tax revenues from workers now able to access better jobs and commerce.  Not to mention that traffic accidents, often the result of crumbling and obsolete road infrastructure, is the #8 cause of fatalities worldwide, including 32,000 a year in the US.  The American mindset is more myopic, focused only on short-term viability for investors.  This was encapsulated by Trump’s infrastructure plan, which focused on subsidies for corporations and localities… the same model that has been failing America’s infrastructure for decades.

It’s clear that the Uber-ization of public transportation is an inadequate and unsustainable solution.  The corporate model is solely predicated on short-term growth and the exploitation of its workforce.  In order to keep up with fellow superpower China, the US must take a centralized approach to maintaining and upgrading its faltering subways, trains, airports, bridges, roads and waterways.  Roosevelt’s Works Progress Administration employed about 9M Americans in the construction of some of the world’s most successful infrastructure projects, such as 29,000 new bridges, at the height of the US’ greatest financial crisis. People like Bernie Sanders and Alexandria Ocasio-Cortez are looking to emulate this past success by enacting a Green New Deal, which would employ millions of Americans in constructing sustainable infrastructure.  Likewise, it would be a boon for construction firms, industrial goods suppliers like Caterpillar, shipping-oriented companies like Amazon and urban-based businesses as a whole.  America must invest itself, in its people, in its future.

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Economy

Convergence Of Competitive Markets And Indian Elections

Joseph Abraham

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If competition is a key component of a flourishing economy, it is equally true that competition in electoral politics and elections is a powerful force for the healthy growth of a vibrant democracy enhancing legitimacy of political parties and their responsiveness to the aspirations of the electorate.

Viewed from the Indian perspective, there is a striking identity between the rights of consumers in the free market economy and the rights of voters in our political democracy. Equally noteworthy is the identity of the fundamental principles governing the rule of law in the free market system, the institutional arrangements for safeguarding consumer rights and the rule of law of elections and the regulatory environment for monitoring the functioning of a free and fair electoral democracy. The free market system ensures the best available goods and services are offered to the consumer at the optimal price following the principles of free market competition without restrictive and unfair trade practices enforced through the Consumer Protection Act1986 and the Competition Act 2002. 

 In the democratic system, the voters are given the right to elect the best available persons as people’s representatives through conducting elections in a free and fair manner which forms the bedrock of democracy. This is ensured by the Election Commission through the enforcement of the Guidelines of Model Code of Conduct for political parties and candidates during elections mainly with respect to speeches, polling day, polling booths, portfolios, election manifestos, processions and general conduct. Thus, while the role of a Referee in the free market system in India is played by the Consumer Disputes Redressal Forum and Competition Commission of India, the rules of  free and fair elections in  political democracy are enforced by the Election Commission of India.    

In a market economy, competition facilitates a host of benefits: awareness and market penetration, higher quality at same prices, increase in demand and consumption through competitive pricing, product differentiation, upgradation and innovation, improvements in efficiency of production at optimal levels by minimising cost and losses and increasing customer service and satisfaction. Competition in politics and elections elevates the voter to a pivotal role in democracy as that given to the consumer in a market driven economy. Electoral candidates vie for votes by promising reforms such as better governance, greater socio-economic equity and positive measures for poverty alleviation.

Each political party through its campaigns, manifesto and other propaganda machinery strives hard to win the maximum number of voters in electoral democracy transforming it as a political free market system with fierce competition  between the players similar to the efforts of sellers in the  free market economy to attract the maximum number of customers.

A   free market system across the globe,  is characterised by the existence of not only the  most efficient firms but also several  inefficient ones who are unable to produce the best quality goods and services  at lowest prices and even  those resorting to fraudulent ,  restrictive and unfair trade practices. Similarly, in political democracy and elections around the world,  besides politicians and parties with high degree of integrity and democratic values, there are those with criminal records, adopting ideologies prejudiced by notions of  race,  caste, colour, gender and religion based politics, and those charged with allegations of vote buying etc. which continues to undermine the democratic process.

Consumer Rights in a Free Market Economy

In India,  the interests of the  consumer in the market economy from restrictive, unfair and anti-competitive trade practices by firms  is safeguarded through several strong legal provisions which inter alia includes  the enactment of the  Consumer Protection Act 1986  and the Competition Act 2002. In addition, consumers rights in the economy are further protected through The Indian Contract Act, 1872, The Sale of Goods Act, of 1930 and  The Agriculture produce Act of 1937.   This is further strengthened by the establishment of supportive quasi-judicial institutional arrangements i.e the Consumer Disputes Redressal Commission at the National, State and District level as well as the Competition Commission of India.

The main objective of the competition law of India is to promote economic efficiency using competition as one of the means of assisting the creation of market responsive to consumer preferences. The advantages of perfect competition are three-fold: allocative efficiency which ensures that costs of production are kept at a minimum and dynamic efficiency which promotes innovative practices.

To achieve its objectives, the Competition Commission of India endeavours to do the following:

  • Make the markets work for the benefit and welfare of consumers
  • Ensure fair and healthy competition in economic activities in the country for faster and inclusive growth and development of the economy.
  • Implement competition policies with an aim to effectuate the most efficient utilization of economic resources.
  • Develop and nurture effective relations and interactions with sectoral regulators to ensure smooth alignment of sectoral regulatory laws in tandem with the competition law.
  • Effectively carry out competition advocacy and spread the information on benefits of competition among all stakeholders to establish and nurture completion culture in Indian economy.

Voters Rights in a Political Democracy

As a free market economy cannot sustain consumer rights without supportive legal and institutional framework, there is little doubt that for the survival of a free and fair democracy, the rule of law should prevail and it is necessary that the best available persons should be chosen as people’s representatives for proper governance of the country (Gadakh Yashwantrao Kankararao v Balasaheb Vikhepati lAIR 1994 SC 678). India isa sovereign, socialist, secular democratic republic. Democracy is one of the inalienable basic features of the Constitution of India and forms parts of its basic structure (Kesavanand Bharati v State of Kerala and Others AIR 1973 SC 1461). The concept of democracy, as visualised by the Constitution, pre-supposes the representation of the people in Parliament and State Legislatures by the method of election (N.P.Punnuswami v Returning Officer Namakka lAIR 1952 SC 64).

 Accordingly, in India,  in the  realm of political democracy and elections, the interests of the voters and electorate  is safeguarded through the Constitution of India,  Representation  of the People’s Act 1950 and 1951,Presidential and Vice Presidential Elections Rules 1974, Registration of Electors Rules 1960 and Conduct of Elections Rules 1961.

In India, the above legal provisions of elections and voting under political democracy    are administered and further supplemented by the Election Commission’s directions and instructions on all aspects. The underlying principle of  parliamentary democracy enforced by the Election Commission of India  is to ensure free and fair elections for which there are three pre-requisites: (1) an authority to conduct these elections, which should be insulated from political and executive interference, (2) set of laws which should govern the conduct of elections and in accordance whereof the authority charged with the responsibility of conducting these elections should hold them, and (3) a mechanism whereby all doubts and disputes arising in connection with these elections should be resolved. The Constitution of Indi has paid due attention to all these imperatives and duly provided for all the three matters.

The Constitution has created an independent Election Commission of India in which vest the superintendence, direction and control of preparation of electoral rolls for, and conduct of elections to, the officers of president and Vice President of India and Parliament and State Legislatures (Article 324). A similar independent constitutional authority has been created for conduct of elections to municipalities, panchayats and other local bodies (Articles 243 K and 243 ZA) along with legal and institutional provisions for  settlement of disputes relating to elections.

Model Code of Conduct in India

Election Commission of India  has laid down a set of guidelines for conduct of political parties and candidate during elections. The main points of code of conduct are:

  1. The government may not lay any new ground for projects or public initiatives once the Model Code of Conduct comes into force.
  2. Government bodies are not to participate in any recruitment process during the electoral process.
  3. The contesting candidates and their campaigners must respect the home life of their rivals and should not disturb them by holding road shows or demonstrations in front of their houses. 
  4. The election campaign rallies and road shows must not hinder the road traffic.
  5. Candidates are asked to refrain from distributing liquor to voters.
  6. The Code hinders the government or ruling party leaders from launching new welfare programmes like construction of roads, provision of drinking water facilities etc or any ribbon-cutting ceremonies.
  7. The code instructs that public spaces like meeting grounds, helipads, government guest houses and bungalows should be equally shared among the contesting candidates. These public spaces should not be monopolized by a few candidates.
  8. On polling day, all political party candidates should cooperate with the  poll-duty officials at the voting booths for an orderly voting process. Candidates should not display their election symbols near and around the poll booths on the polling day. No one should enter the booths without a valid pass from the Election Commission.
  9. There will be poll observers to who any complaints can be reported or submitted.
  10. The ruling party should not use its seat of power for the campaign purposes.
  11. The ruling party ministers should not make any ad-hoc appointment of officials, which may influence the voters in favour of the party in power.
  12. Before using loud speakers during their poll campaigning, candidates and political parties must obtain permission or license from the local authorities. The candidates should inform the local police for conducting election rallies to enable the police authorities to make required security arrangements. 

Conclusion

In a wider sense, both free markets and democratic elections are run on the basis of a set of rules with respective regulatory bodies enforcing the rules of the game. While there is a strong element of political centralization in the decision making process of elections, free market system is tilted more towards the principle of economic decentralisation. However, the consumer and the voter whose rights are legally and institutionally safeguarded remain as the principal beneficiaries of both systems- the economic and political. Thus free markets and democracy have identical underlying objectives of maximising welfare of the people. The convergence of the political economy of free markets and elections therefore highlights the democratic principles governing the welfare of citizens.

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