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Type: Op-ed

  • Unpacking the resiliency of global trade

    Context

    Past experiences suggest there is hope for global trade recovery in the post-COVID-19 world.

    Impact of pandemic on the global and Indian economy

    • In the last year, the devastating impact of COVID-19 pandemic has shrunk the world economy by 4.4% and global trade by 5.3%.
    • Job losses in the world have been estimated to be to the tune of 75 million.
    • India’s GDP contracted by 7.3% according to the National Statistical Office.
    • About 10 million jobs were lost in India according to the Centre for Monitoring Indian Economy Pvt. Ltd.
    • Around the world, countries have responded to pandemic-induced shortages with protectionist reactions and nationalist aspirations.
    • Such a response has the potential to disrupt complex cross-border supply chains.

    How economic shocks in the past laid foundation for institutional changes

    • The Second World War was responsible for the creation of the Bretton Woods Institutions such as World Bank and International Monetary Fund (IMF) and International Trade Organisation (ITO) were created to help rebuild the shattered post-war economy.
    •  The General Agreement on Tariffs and Trade (GATT) was negotiated in 1947 as a means to reducing barriers to international trade.
    • The oil shocks of the 1970s led to the establishment of the International Energy Agency (IEA) in 1974 and went on to create awareness on the need for global energy security.
    • The financial crisis of 2008 led to the G20 Leaders Summit, an elevation from the G20 Finance Ministers forum in 1999.
    • Increase in global trade: As a result of these developments global trade increased from a mere $60.80 billion in 1950 to $2,049 billion in 1980; $6,452 billion in 2000; $19,014 billion in 2019.

    Changes in the global trade in post-Covid world

    • Financial buffers due to stimulus package: Stimulus packages and forced savings in several countries in the last year have created financial buffers.
    • Resilient supply chain: Global supply chains are expected to be resilient to help revive manufacturing with lower production costs, induce investments and promote technology transfers.
    • Anti-dumping measures at WTO: In a post COVID-19 world, members of the World Trade Organization are expected to make rules to discipline errant nations that are known to dumping goods and erecting trade barriers through multilateral rules.
    • Deeper economic integration through trade arrangements: Mutually beneficial trade arrangements that seek deeper economic integration will be entered into at the bilateral and regional levels.
    • Dominance of technology: Countries that harness technology are expected to dominate international trade in future with a transformational impact on the global economy.
    •  Businesses will aim to harness data for innovation to remain ahead of the curve in a post-COVID-19 world.

    Way forward for India

    • The projections of the International Monetary Fund for India’s economic growth ahead are positive and in line with the general trends world-wide.
    • Focus on value-added manufacturing: Building an ecosystem that incentivises value-added manufacturing and technology-induced finished products should form a part of our long-term strategy.
    • Production Linked Incentive Scheme (PLI) schemes, if carefully nurtured, could lead the industry on that path.
    • Support MSMEs: Supporting MSMEs with cheaper input costs, including raw material and intermediate goods would help sustain them with job creation at the local level.
    •  Developing a synergistic relationship between the big industry and MSMEs is at the core of a successful Atmanirbhar Bharat.
    • Skill upgradation: Skills upgradation to global standards should form a part of India’s strategy in a post-COVID-19 world.

    Conclusion

    The patterns in the past leave much hope for optimism for global trade in the post-COVID-19 crisis in the collective belief that international trade is vital for development and prosperity.

  • The shaky foundation of the labour law reforms

    Context

    The central government has deferred the possible date of implementation of labour codes to October 1, 2021, prolonging the wait before employers and workers could enjoy the benefits extended by the labour codes.

    Labour law reforms: Key provisions

    • The government enacted the Code on Wages in August 2019 and the other three Codes, viz., the Industrial Relations Code, the Occupational Safety, Health and Working Conditions Code and Code on Social Security (CSS) in September 2020.
    • Universal minimum wage: The codes would extend universal minimum wages and social security, enable enhanced industrial safety and the provision of social security to gig workers, among other things.
    • Recognition of trade unions: The Industrial Relations Code provides for recognition of trade union(s) by employers, a labour right that eluded workers for seven decades.
    • Flexibility to employers: Employers celebrated the extension of tremendous flexibility to them, even those unasked, such as relief from framing standing orders for most firms.
    • The central government has deferred the possible date of implementation to October 1, 2021.

    Issues in implementation

    • State’s have not issued draft rules: Major States such as Tamil Nadu, Kerala, West Bengal, Maharashtra, Haryana and Delhi have not issued the draft rules under any codes.
    • Even though the Code on Wages was enacted in August 2019, it was only in March 2021 that the central government notified the constitution of an advisory committee.
    • Safety concerns persist:  Industrial safety continues to be a grave concern even after the enactment of the Occupational Safety, Health and Working Conditions Code.
    • Lack of clarity on the determination of minimum wage: On June 3, 2021, the government announced an expert committee with a tenure of three years to advise on minimum wages.
    • Then, on July 12, 2021, the government announced that the wage index’s base year would be shifted from 1965 to 2019 to use the revised wage index to determine minimum wages.
    • The Government seems to be facing difficulty regarding the implementation of minimum wages.

    Conclusion

    Despite the gazetting of four Codes, age-old laws are in force. That reflects poorly on the governance abilities of the governments.

  • No fossil fuels as usual

    Context

    The spread and speed of the destruction caused by climate change in recent weeks present our new Minister of Petroleum and Natural Gas with a policy dilemma. The article offers five policy suggestions to deal with the dilemma.

    Energy dilemma facing India

    • The events of the past month all over the world have caught even the most alarmist of climate scientists by surprise.
    • These events brought into sharp relief the reality that there was no option of denying the consequential implications of the use of fossil fuels.
    • However, the dilemma India faces lies in the fact that the Indian economy is heavily dependent on fossil fuels and there is no end in sight to this dependence.
    • Further, India imports approximately 85 percent of its crude oil requirements and is exposed to the volatility of the international oil market.

    Five policy changes needed

    1) Reduce emphasis on domestic exploration

    • Not easy to locate and difficult to develop: A review of the public sector’s exploration and production (EP) track record suggests that whilst India may well be sitting on substantial hydrocarbon reserves, these reserves are not easy to locate and, even when located, difficult to develop and produce on a commercial basis.
    • The government has often compounded this economic challenge by placing administrative limits on marketing by companies and their pricing freedom.
    • High risk and structural softness in the market: The fundamental point is that EP in India is a high-risk activity, and this risk is even greater today because of the longer-term structural softness of the petroleum market.
    • The resources earmarked for exploration can be deployed more productively elsewhere.

    2) Increase productivity of producing fields

    • The ONGC needs to allocate increasing resources to improving the productivity of its producing fields.
    • Low oil recovery rate: The average oil recovery rate in India was around 28 percent that is, for every 100 molecules discovered, only 28 were monetized.
    • This number did not compare well with the global average of around 45 percent for fields of comparable geology.
    • Use technology: The application of enhanced oil recovery (EOR) technology offers a relatively low-risk avenue for increasing domestic production.

    3) Increase strategic reserves

    • We hold currently strategic reserves equivalent to 12 days of imports.
    • The government has approved plans to increase this buffer to 25 days.
    • By comparison, China, the EU, South Korea, and Japan hold between 70-100 days of reserves.
    • A significant portion of our oil imports came from the Middle East, predominantly Saudi Arabia, Iraq, and Iran.
    • This region faces deep political and social fault lines and there is no knowing when our supply lines might get ruptured.
    • We would, therefore, be well-advised to build contingency safeguards.

    4) Restructure and reorganize public sector petroleum companies

    • Consolidate upstream assets: In the first instance, the upstream assets should be consolidated under ONGC (the upstream assets of BPCL, IOC, HPCL, and GAIL should pass onto ONGC) and GAIL should be unbundled into a public utility gas pipeline company
    • Diversify: Thereafter, these companies should be encouraged to look beyond hydrocarbons to build an “energy” enterprise.
    • The restructuring will help cut back the “avoidable” costs of intra public sector competition.
    • It will also reduce the inefficiencies of “sub-scale” operations.
    • It will provide a focused platform for balancing the shorter-term need to provide secure and affordable hydrocarbons with the medium and longer-term imperative of developing clean energy.

    5) Avoid siloed thinking

    • The petroleum minister should not see his responsibility through the siloed prism of oil and natural gas.
    • He should broaden the aperture and become the progenitor of the energy transition.

    Conclusion

    The dilemma referred to in the opening sentence will be easier to resolve our priorities are set within the framework of clean energy.

  • Issues related to people with disabilities

    Context

    Twenty years ago on August 6 in Erwadi in Tamil Nadu’s Ramanathapuram, a fire broke out in a thatched shelter, engulfing 43 chained people who had psychosocial disabilities.

    Legal provision for the persons with disabilities

    • India ratified the Convention on the Rights of Persons with Disabilities (CRPD) in 2007.
    • The Rights of Persons with Disabilities Act  was enacted in 2016.
    • The Mental Healthcare Act (MHCA) was enacted in 2017.

    Failure of the states

    • Sates have failed to uphold the human rights of people with disabilities in general and those with psychosocial and intellectual disabilities in particular.
    • Only eight states/UTs — Karnataka, Andhra Pradesh, Uttar Pradesh, Jammu & Kashmir, Maharashtra, Odisha, Kerala, and West Bengal — have framed rules for implementation of MHCA.
    • Unless we implement the law in letter and spirit, the Global Mental Health Movement will remain a mere buzzword and the CRPD-reliant MHCA will remain a law only on paper.

    Violations of rights in private asylums

    • Private asylums survive because of their close proximity to faith-based healing centres.
    • Because mental health conditions carry a high stigma, caregivers flock to these faith-based facilities in the hopes of finding a cure.
    • Private players take advantage of their vulnerabilities, forcing such persons with psychosocial issues to be grouped together and chained in these shelters.
    • Chaining in any way or form is outlawed under Section 95 of the MHCA.

    Way forward

    • Human right approach: We must work to ensure that the human rights approach to disability is integrated into mental health systems, education, law, and bureaucracy.
    • We move away from pathologisation, segregation, and a charity-based approach.

    Conclusion

    Implementation of rights of the persons with disability needs implementation in letter and spirit and human rights based approach.

  • A circular economy for plastic

    Context

    The India Plastics Pact, the first in Asia, will be launched in September at the CII Annual Sustainability Summit.

    Issue of plastic waste

    • A 2019 report by the Center for International Environmental Law suggests that by 2050, greenhouse gas emissions from plastic could reach over 56 gigatonnes, 10-13% of the remaining carbon budget.
    • Connection with livelihood: Viewed from the angle of livelihoods, post-consumer segregation, collection and disposal of plastics make up about half of the income of 1.5- 4 million waste-pickers in India.
    • For India, the solution must be multi-pronged, systemic, and large scale, to create a visible impact. The Plastics Pacts model offers such a solution.

    About Plastics Pacts model

    • Business-led initiative: The Plastics Pacts are business-led initiatives and transform the plastics packaging value chain for all formats and products.
    • The Pacts bring together everyone from across the plastics value chain to implement practical solutions.
    • Integral to the Pact’s framework is the involvement of the informal waste sector crucial to post-consumer segregation, collection and processing of plastic waste. 
    • All Pacts unite behind four targets:
    • 1) To eliminate unnecessary and problematic plastic packaging through redesign and innovation.
    • 2) To ensure all plastic packaging is reusable or recyclable.
    • 3) To increase the reuse, collection, and recycling of plastic packaging.
    • 4) To increase recycled content in plastic packaging.
    • It is active in a number of countries including the U.K., South Africa, and Australia.
    • The first Plastics Pact was launched in the U.K. in 2018, by WRAP, a global NGO based in the U.K.
    • It is now being brought to India by CII and WWF India.

    Advantages

    • Economic advantage: It can be expected to boost demand for recycled content, investments in recycling infrastructure, jobs in the waste sector, and beyond.
    • Support EPR framework: The Pact will support the Extended Producer Responsibility framework of the government and improve solid waste management as envisioned in the Swachh Bharat Abhiyan.
    • The India Plastics Pact focuses on solutions and innovation.
    • Plastic production and management development: The Pact will encourage the development and maturing of the entire plastics production and management ecosystem.
    • Drive circulatory of plastic: Apart from benefits to society and economy, delivering the targets will drive the circularity of plastics and help tackle pollution.

    Conclusion

    The India Plastics Pact will benefit society, the economy and the environment.

  • The sovereign right to tax is not absolute

    Context

    A bill introduced in Parliament last week aims to nullify the 2012 amendment in the Income Tax Act which made the income tax law retroactively applicable on indirect transfer of Indian assets.

    Issue of taxation as a sovereign right of the state

    • Several  Investor-State Dispute Settlement (ISDS) tribunals have recognised the fundamental principle that taxation is an intrinsic element of the state’s sovereign power. 
    • The ISDS tribunals have also held that whenever a foreign investor challenges states’ taxation measures, there is a presumption that the taxation measures are valid and legal.
    • For instance, an ISDS tribunal in Renta 4 v. Russia said that when it comes to examining taxation measures for BIT breaches, the starting point should be that the taxation measures are a bona fide exercise of the state’s public powers.

    What are the limits on the taxation rights of a Country under BITs

    • The two most used BIT provisions to challenge a state’s taxation measures are expropriation and the fair and equitable treatment provision.
    • 1) Expropriation: In the context of expropriation, one of the key ISDS cases that explained the limits on the state’s right to tax is Burlington v. Ecuador.
    • In this case, the tribunal held that under customary international law, there are two limits on the state’s right to tax.
    • First, the tax should not be discriminatory.
    • Second, it should not be confiscatory.
    • 2) Fair and equitable treatment: In the context of the fair and equitable treatment provision, foreign investors have often challenged taxation measures as breaching legal certainty, which is an element of the fair and equitable treatment provision.
    • Although legal certainty does not mean immutability of legal framework, states are under an obligation to carry out legal changes such as amending their tax laws in a reasonable and proportionate manner.

    So, what happened in Cairn Energy v. India case?

    • The tribunal in Cairn Energy v. India said that taxing indirect transfers is India’s sovereign power and the tribunal would not comment on it.
    • Legal certainty: The tribunal said that India’s right to tax in the public interest should be balanced with the investor’s interest of legal certainty.
    • The tribunal held that the public purpose that justifies the application of law prospectively will usually be insufficient to justify the retroactive application of the law.
    • India argued that the 2012 amendment was to ensure that foreign corporations who use tax havens for the indirect transfers of underlying Indian assets pay taxes.
    • However, the tribunal held that this objective could be achieved by amending the income tax law prospectively, not retroactively.
    • The tribunal did not rule against retroactivity of tax laws per se but against the retroactive application that lacked public policy justification.

    Way forward

    • Carving out taxation from BITs: India in its 2016 Model BIT carved out taxation measures completely from the scope of the investment treaty.
    • Nonetheless, carving out taxation measures from the scope of the BIT does not mean that states are free to do as they please.
    • India should exercise its right to regulate while being mindful of its international law obligations, acting in good faith and in a proportionate manner.
    • ISDS tribunals do not interfere with such regulatory measures.

    Conclusion

    In sum, the debate never was whether India has a sovereign right to tax, but whether this sovereign right is subject to certain limitations. The answer is an emphatic ‘yes’ because under international law the sovereign right to tax is not absolute.

    Back2Basics:  Investor-State Dispute Settlement (ISDS) tribunal

    • ISDS is a mechanism included in many trade and investment agreements to settle disputes.
    • Settling these investor disputes relies on arbitration rather than public courts.
    • Under agreements which include ISDS mechanisms, a company from one signatory state investing in another signatory state can argue that new laws or regulations could negatively affect its expected profits or investment potential, and seek compensation in a binding arbitration tribunal.
    • The system only provides for foreign companies to sue states, not the other way around.

  • Retiring Old Coal Power Plants

    Context

    As part of the Union Budget address for 2020-21, the Finance Minister, Nirmala Sitharaman, said that the shutting down of old coal power plants, which are major contributors to emissions, will aid the achievement of India’s Nationally Determined Contributions.

    Advantages of shutting down old coal power plants

    • The availability of under-utilized newer and presumably more efficient coal-based capacity means that shutting down older inefficient plants would lead to improved efficiencies, reduced coal usage, and hence, cost savings.
    • It would be uneconomical for old plants to install pollution control equipment required to meet the emission standards announced by the Environment Ministry, and hence it would be better to retire them.

    Why the decision needs finer scrutiny?

    • Some old plants are cost-effective: There are also several old plants, which generate at lower costs, such as plants at Rihand, Singrauli, and Vidhyanchal (Madhya Pradesh).
    • Locational advantage: This may be due to locational advantage rather than efficiency, as older plants are likely to be located closer to the coal source, reducing coal transport costs.
    • Not cost-effective: Savings in generation cost from shutting down plants older than 25 years would be less than ₹5,000 crore annually, which is just 2% of the total power generation cost.
    • Not effective in reducing coal consumption: Savings in coal consumption by replacing generation from plants older than 25 years with newer coal plants are also likely to be only in the 1%-2% range.
    • Economical even after installing pollution control equipment: There are some old plants that may continue to be economically viable even if they install pollution control equipment as their current fixed costs are very low.

    Important roles played by old thermal power plants

    • A significant part of power supply: Plants older than 25 years makeup around 20% of the total installed thermal capacity in the country and play a significant role in the country’s power supply.
    • Supporting renewable: To support the growing intermittent renewable generation in the sector, there is an increasing need for capacity that can provide flexibility, balancing, and ancillary services.
    • Old thermal capacity, with lower fixed costs, is a prime candidate to play this role until other technologies (such as storage) can replace them at scale.
    • Political economy risk: There is also a political economy risk, as aggressive early retirement of coal-based capacity, without detailed analyses, could result in real or perceived electricity shortage in some States, leading to calls for investments in coal-based base-load capacity by State-owned entities.

    Way forward

    • Nuanced analysis needed: Instead of using age as the only criteria, a more disaggregated and nuanced analysis needs to be used.
    • Constraint related to renewable and increasing demand: We also need to take into account aspects such as intermittency of renewables, growing demand, and the need to meet emission norms, to make retirement-related decisions.

    Conclusion

    It may be prudent to let old capacity fade away in due course while focusing on such detailed analysis and weeding out the needless capacity in the pipeline, to derive long-term economic and environmental benefits.

  • Advocating for sustained focus on the maritime domain

    Context

    In an innovative departure from normal practice, Prime Minister Narendra Modi will preside (in virtual mode) over the UN Security Council, on Monday (August 9) when India holds the President’s chair for one month. The subject of debate is maritime security.

    Issues with global maritime security

    • FON issue: There is  tension in the South China Sea over freedom of navigation (FON) rights in international waters and how China has laid claim to “territoriality” based on artificial structures (not natural islands).
    • This formulation has not been accepted by the US that has exercised transit rights in these waters.
    • Many ASEAN nations and Quad members such as Japan, Australia and India subscribe to the principle of FON and do not accept the Chinese interpretation of the “nine-dash-line”.
    • Traditional challenges: Piracy and non-traditional challenges at sea such as gun-running and smuggling are old chestnuts.
    • Maritime pollution: Accidents in the oceans have added to the anxiety about marine pollution and its downstream consequences for the health of the oceans.
    • Global warming: A UN report has come up with grim statistics about the impact of global warming on the chemistry of oceans.
    • This study notes that oceans have become more acidic as sea water absorbs more carbon dioxide.
    • Furthermore, the upper layers of the open ocean have lost between 0.5 per cent and 3.3 per cent of their oxygen since 1970 as temperatures have risen.

    Way forward for India at UNCS: Security and equitable growth

    • The subject to be deliberated upon by the UNSC members is “Enhancing maritime security: A case for international cooperation”.
    • This would be an extension of India’s advocacy of SAGAR (security and growth for all in the region) in relation to the Indian Ocean region (IOR).
    •  At the UNSC strategic and security issues such as the South China Sea and FON would find little consensus as China is a permanent member and would stall any meaningful debate.
    • Focus on global goods: What may find support for a useful debate at the UNSC would be those areas that could be brought under the rubric of the “global good”.
    • For instance, the welfare of seafarers who are the sinews of the global merchant marine, has received scant attention in this Covid-scarred period and the IMO (International Maritime Organisation) has been unable to effectively address such issues.
    • Correlation with globalisation: India can also advocate for sustained focus on the maritime domain and the correlation with globalisation, the blue economy, the health of the ocean and the overall impact on human security.

    Conclusion

    Security and equitable growth for all by husbanding the global ocean for future generations is a laudable goal and encouraging the UNSC to prioritise this issue is a worthy cause.

  • South Asia’s emerging digital transformation

    Context

    COVID-19 has forced South Asia to take a quantum leap in digitalisation, which will help shape its future prosperity.

    Spike in digitisation due to Covid

    • In India, COVID-19 accelerated the launch of the National Digital Health Mission, enhancing the accessibility and the efficiency of health-care services by creating a unique health ID for every citizen.
    • Pandemic accelerated South Asia’s embrace of e-commerce, boosted by digital payment systems.
    • Bangladesh alone witnessed an increase of 70-80% in online sales in 2020, generating $708.46 million in revenues.
    • Even smaller nations such as Nepal recording almost an 11% increase in broadband Internet users.

    The dangers of a digital divide

    • A wide digital divide persists in access and affordability, between and within the countries of South Asia.
    • Despite having the world’s second-largest online market, 50% of India’s population are without Internet with 59% for Bangladesh and 65% for Pakistan.
    • This divide could permanently put children out of school, place girls at risk of early marriage, and push poor children into child labour costing economies billions of dollars in future earnings.
    • Businesses too have paid a heavy price for the gap in digital solutions, whereby many South Asian firms failing to embrace e-commerce or other cloud-based technologies to survive the financial chaos of the novel coronavirus pandemic.

    Asian digitalisation

    • Digital transformation is a global imperative with the adoption of advanced technologies.
    • At the forefront of Asian digitalisation are countries such as Singapore, Japan, and South Korea recognised as global technological hubs.
    • The digital boom in the Association of Southeast Asian Nations (ASEAN) economies is pushing a “common market” initiative, fostering regional economic integration and enhancing global competitiveness.
    • South Asia has also made significant strides in the adoption of digital technologies such as the Digital Bangladesh Vision 2021.

    How digitalisation can help South Asia?

    • The region still has a long way to go.
    • Jobs in e-commerce: E-commerce could drive the post-pandemic growth in South Asia, providing new business opportunities and access to larger markets.
    • In India, e-commerce could create a million jobs by 2030 and be worth $200 billion by 2026.
    • Growth driven by Fintech: Fintech could drive significant growth and reduce poverty by building financial inclusion.
    • Increase in productivity: A timely, inclusive, and sustainable digital transformation can not only bolster productivity and growth but also serve as a panacea for some of the region’s socio-economic divides.

    Steps need to be taken

    • To reap the dividends of digital transformation, South Asia needs to address legal, regulatory and policy gaps as well as boost digital skills.
    • Digital infrastructure: A robust digital infrastructure is a sine qua non and there exists a huge financing gap.
    • India alone needs an annual investment of $35 billion to be in the top five global digital economy.
    • Private-public partnership: Public-private partnership needs to be leveraged for the region’s digital infrastructure financing.
    • Regulatory roadblocks need to be addressed as e-commerce regulations are weak in South Asia.
    • Digital literacy: There would be no digital revolution without universal digital literacy.
    • Governments and businesses need to come together to revamp the education system to meet the demand for digital skills and online platforms.
    • Cybersecurity measures: The crossflow of data and personal information calls for stringent cybersecurity measures as many have experienced painful lessons in data privacy during the pandemic.
    • Digital Single Market Proposal: By addressing issues such as regulatory barriers on currency flows inhibiting online payment to transport-related constraints for cross-border e-commerce activities, South Asia can emulate the European Union’s Digital Single Market Proposal.
    • Collaboration: Concerted collaboration at all levels is needed to push South Asia out of stagnancy and towards a digital future of shared prosperity.
    • Partnership for digital revolution: During the pandemic, South Asian nations joined hands to collectively battle the crises by contributing towards a COVID-19 emergency fund, exchanging data and information on health surveillance, sharing research findings, and developing an online learning platform for health workers.
    • If the eight nations (Afghanistan, Bangladesh, Bhutan, India, Nepal, Maldives, Pakistan and Sri Lanka) can start walking the talk, partnership for a successful digital revolution is plausible.

    Conclusion

    A shared “digital vision” could place the region on the right track towards the Fourth Industrial Revolution.

  • Resolving the Assam-Mizoram issue

    Context

    The violent stand-off between the Assam and Mizoram armed policemen at Vairengte in Mizoram, on July 26, took six lives and left over 50 injured is the culmination of a long-standing border dispute.

    History of the boundary issue

    • The ‘inner line’ boundary of the Lushai hills was ‘fixed’ in 1875 on the southern border of Assam’s Cachar district.
    • In line with the colonial practice of ‘fixing’ borders, this boundary was however not ‘precise’ as it was drawn largely using natural markers such as rivers and hills.
    • In post-independent India, the Mizoram government has accepted this boundary in preference over the subsequent revisions made by the colonial government.
    • There was a change in boundary when the Inner Line Permit under the Bengal Eastern Frontier Regulation, 1873 was extended to the Lushai hills district in 1930 and 1933.
    • The Mizoram government perceives that the boundary instituted by these revisions amounted to unilateral superimposition.
    • These revisions are also seen to conspicuously fail to recognise the Mizo’s long-standing historical rights to use the un-demarcated southern border of Cachar as their hunting ground, for jhum cultivation, and as sites of their resource extraction including rubber and timber.
    • However, considering that borders cannot be driven by perception but by institutionalised rules and laws, Assam’s government continues to refuse to accept Mizoram’s standpoint.
    • The Assam government considers Mizo plantation and settlements in the Inner Line Reserve Forest areas as an ‘encroachment’.

    People-centric Vs. State-centric approach in dispute

    • At the heart of this dispute is the contending approaches of the Assam and Mizoram governments to ‘borders’, namely ‘state-centric and ‘people-centric approaches.
    • The Assam government represent a continuum of the colonial ‘state-centric’ approach to borders which gives premium to legal, juridical and administrative recognition and protection of the border.
    • The Mizoram government advocate a ‘people-centric approach seeks to give a premium to the historical and traditional rights of the local indigenous people.
    • The Mizoram government also advocate the principle of uti possidetis juris (‘as you possess under law’, including customary law) on the other hand.

    Way forward

    • Historical context: Fixing the Assam-Mizoram border and resolve the dispute need to be sensitive to the historical context.
    • Deep historical knowledge, sensitivity and an accommodative spirit need to inform dialogue and negotiation under the neutral supervision of the Centre.
    • Inter-governmental forum: It is about time that the Centre sets up a permanent inter-governmental forum to involve important stakeholders in order to effectively manage border and territorial conflicts.
    • Quick-fix solution should be avoided: Any quick-fix solution driven by temporal electoral considerations should be avoided if we were to resuscitate and sustain interdependent Assam-Mizoram borders and beyond.

    Conclusion

    The resolution should be sensitive to the possibility of fluid and overlapping sovereignty, where forest ‘commons’ are seen not simply as sites of revenue-extraction but as powerful symbols of identity and sustainable livelihood resources for the local people.