CUTS IN MEDIA-April 2006


How far the governmental monopoly is fair in postal services?
April 27, 2006, Navbharat Times
Courier cos express concern over draft Postal Bill
April 21, 2006, The Hindu Business Line
City popping too many pills: Study
April 10, 2006, Times of India
An Indian Role in Africa
April 10, 2006, The Telegraph


How far the governmental monopoly is fair in postal services?

April 27, 2006, Navbharat Times
New Delhi


Courier cos express concern over draft Postal Bill

Will create monopolistic tendencies and discourage competition

April 21, 2006, The Hindu Business Line
New Delhi

The courier industry has expressed its concern over the proposals of the draft Postal Bill released by the Government on Thursday.

Mr Chris Callen, Country Manager of DHL Express, said that while he was delighted that the Government has decided to enter into a debate, there are concerns about three main provisions in the draft Bill.

"First, the definition of a `letter', preventing courier companies from delivering letters below 300 gm, distorts the level playing field.

Second, there is no need to appointment a postal regulator in the industry which is doing well on its own adding to the economy. Third, we are very concerned about the 10 per cent of revenue levied for USO fund.

"We will ask for transparency in the accounts of the Postal Department to know how the money will be utilised. Implementation of the Bill in the current form will put a number of courier companies out of business."

Mr Anil Agarwal, President of Asssocham, said: "Preventing the courier industry from carrying postal packets below 300 gm will create monopolistic tendencies and discourage competition. It should be left to the consumers to decide whether they would like their postal deliveries through State-owned post offices or by way of private couriers."

Mr Pradeep S. Mehta, Secretary-General of Consumer Unity and Trust Society, said: "If the proposed amendments are enacted, it would imply that consumers are denied a choice. Even if they have urgent time-bound documents they will have to perforce use post. This will also wipe out a vibrant segment of our service sector economy and with it, over a million jobs."

Defending the decision, the Postal Department said: "The monopoly over a specific part of the letter mail up to a specified weight limit is essential as the

Department of Posts is required to fulfil the Universal Service Obligation (USO), which involves postal coverage to financially non-viable areas also at affordable rates for the common man. Courier companies are operating only in creamy areas and big business centres with sole motive of profit without corresponding responsibility towards deprived class of people residing in rural, remote, hilly, tribal and inaccessible."

Mr P.C. Sharma, CEO of XPS Courier & Air, said: "The express and courier segment provides employment to a large section of the population, essentially members from the economically weaker sections, who would be rendered unemployed. The Government should, therefore, review its decision and look into the interests of the community at large."

This news can also be read at following URL:

City popping too many pills: Study

April 10, 2006, Times of India

Much of the medicines you consume, thanks to your doc’s prescription, are unnecessary drugs. They not only pinch your pocket hard, but cause some irreparable damages to your body

About 70% of drugs, which have flooded chemist shops in Kolkata, are unnecessary ones. A World Health Organization (WHO) backed study carried out by leading NGO, Consumer Unity Trust Society (CUTS), showed that patients are no less responsible for this phenomenon.

Beside doctors, patients are no less liable as its their health and their pockets are at stake. One has to pay dearly for ignorance. A patient or his family members should ask the doctor about the rational use of a drug said, Dr. Krishnangshu Roy superintendent and vice principal of R.G. Kar Medical College and Hospital.

As per the WHO definition on rational use of drugs, patients should receive doses that meet their requirements for an adequate period of time. “Patients often stop taking the full course of the medicines. Incomplete course leaves the illness dorm ant in the body and develops resistance to the medicine. Once the disease relapses, the medicine does not work.” Said Mita Dutta of CUTS.

The CUTS study revealed that 21% patients in Kolkata decide to stop medicine the moment they get relief. In case of missing dose, 33% of patients in Kolkata take the missing does immediately without consulting the doctor. Nearly 46% of the patients know a little about the side effects of drugs.

The study revealed, only 25% of the city patients know about ideal foods and drinks to be consumed with specific medicines. Forty two% patients do not know which drug should not be taken with another drug. Nearly 50% of them keep leftover medicines for future use.

Only 23% of the patients know that under some psychological conditions a few specific drugs are to be avoided. Again 25% of the patients are unaware if precautions to be taken for a specific drug.

Out of 250 prescriptions of city doctors, Dr. Roy’s team analyzed, 125 were found to be incomplete.


April 10, 2006, The Telegraph
Commentarao / S.L. Rao
The author is former director-general, National Council for Applied Economic Research

I was in Addis Ababa, Ethiopia, in March for a conference to discuss the findings of a research project on the environment for competition in Africa. It was organized by Consumer Unity and Trust Society of Jaipur, a consumer activist and research organization, perhaps the only Indian non-governmental organization with offices in Nairobi and Lusaka, collaborative African research institutions and a substantial information base about laws and practices in competition. Also engaged in research, advocacy and consulting, CUTS had local research teams in many African countries to study competition law, policy and regulation.

The last time I visited Africa and Ethiopia was on an export trip I undertook in 1968. I was keen to see what changes had taken place since then. Foreign exchange allowances for travel by Indians then were very limited. So, many African countries had appeared prosperous compared to India. Most of my prospective buyers were Indian traders. Indians in East Africa were sending as much money as they could out of the country. They migrated to the United Kingdom and later Canada and Australia, leaving behind one member of the family to look after the local business. Today, most of Africa is the dismal continent, heavily dependent on charity, in the grip of aid agencies and consultants, with governance almost non-existent as politicians seek to perpetuate their power.

The Economist has its outgoing editor saying in his farewell editorial: “It is true that Africa is the continent that has tragically had regress, not progress, because of war, the ravages of disease, and decisions by too many governing elites to stick to kleptocracy.”

In 1968, East Africa, Ethiopia, Sudan and Egypt seemed unsafe and unstable. Streets in many countries had a forbidding police or military presence, themselves said to be predators. There was extensive corruption at high levels and tribal animosities. But one could hope that these countries that had only a little while back achieved independence from foreign rule or influence, would soon get down to the business of development. Jomo Kenyatta, Julius Neyrere, Léopold Senghor and many of the surviving great leaders of the African independence movements could lead them to prosperity.

In India too, the youth had great hopes that the young and modern Indira Gandhi would lead the country forward. In actuality, Indira Gandhi held up development of the economy. But the development work of the earlier Nehru years, many leaders in the Centre and states who had also fought for independence, and a strong functioning administration, ensured that there was no regression..

Unfortunately, most African leaders emerging with independence were tribal and not national in their loyalties, money-hungry and corrupt, and with little ideological base or vision for their country. Honest leaders like Neyrere were woolly-headed, with illusions about the virtues of socialism. For instance, he nationalized internal trade. Such measures took Tanzania into economic disaster.

No African country at independence had the good fortune of India in its leadership. Mahatma Gandhi, Jawaharlal Nehru and Vallabhbhai Patel as well as many others provided a vision for India and a thrust for its economic development. Centralized planning then created an industrial and infrastructure base. Continuation of central planning and allocation of resources under Indira Gandhi in the Seventies and early Eighties put back India’s development clock by at least a decade.

But in Africa, the colonial powers had done little to unify the nations whose boundaries had been drawn without regard to homogeneity. Aid funds were squandered on expensive consultants, stolen by politicians and administrators. Little was spent to improve the condition of the people. Almost every country went through years of fratricidal fighting between tribes, civil wars, and some even saw secession.

Unfortunately, this situation continues into the present day in almost all African countries except some like Botswana or South Africa. Economic growth is erratic and any transitory up-trend is due to charity, not fundamental changes in savings, capital formation, exports, productivity, and so on. Law and order remain uncertain. Politicians continue to be venal. Tribal rivalries spill over frequently into the streets. Bombs, frequent shootings, kidnappings, “car jackings”, dacoities and theft are common.

The “one model fits all” approach of international funding agencies and the dominance of consultants from developed Western economies have frequently resulted in policies that are unsuited to the stage of the economies and the institutional and skills capacities in Africa. Sensible policies are introduced but without creating the necessary enabling environment of laws, institutions, identifying, recruiting and training suitable people, building an adequate and recurring base of data and information.

African countries vary greatly in land area, resources, population, resources, education. In many instances the markets are not of a viable size for competition. While there has been some attempt at joining together to create larger markets through free trade areas, the attempts have been half-hearted and have had little effect. When it comes to infrastructure servi- ces like electri- city, telecommunications, railways, roads and airlines, there is even less attempt to join together to create more viable market sizes. It would make eminent sense for contiguous countries to join to form a common electricity grid or a common telecommunications system. It would enable more entrants who could compete. Electricity availability and quality could improve. But countries fear loss of sovereignty and little has been done.

Competition is possible if there is an enabling framework in place. When there are no standards for weights and measures and inspectors to enforce them, when packaging rules do not exist and consumers do not know the correct prices, when quality standards are not set out and enforced, or there is inadequate policing of manufacturers, retailers, and so on, competition becomes farcical. Not only must this enabling environment exist but there must also be means to identify and punish anti-competitive behaviour.

For many reasons such as small market size, dominance by one or more suppliers, poor information to consumers, competition may not exist. It is possible to enable the consumer to enjoy some benefits by simulating the effects of competition. But this requires independent and transparent regulation for issuing licences, determining tariffs, punishing anti-competitive behaviour and improving quality. In much of Africa such regulators either do not exist or are subservient to ministers and governments. Given the hunger for power that makes so many African leaders find ways to make themselves “Leaders for Life”, it is unlikely that regulators will be transparently appointed or be independent. The experiences of the few countries that have appointed regulators corroborate this.

We have similar problems of fissiparous tendencies, venal politicians, corruption and waste, but we have made progress, though very slowly.. Africa’s hope is in its youth, who must be given guidance and training. With a much better image, and having gone through similar problems, India can help. We should set up a programme that offers training to young educated Africans in socio-economic research, policy studies, methodologies for tariff determination, maintaining data bases, and so on.

We should also offer journalists in Africa exposure and training in independent regulation and governance by exposing them to regulators in infrastructure, pharmaceuticals, education, transport. The impact of such exposure on Africa could be out of proportion to the investment.

This news can also be read at following URL:

Consumer Unity & Trust Society
Dľ217, Bhaskar Marg, Bani Park, 
Jaipur  302 016, India,
Ph: +91(0)141-2282821
Fax: 91.141.2282485

Copyright 2005 Consumer Unity & Trust Society (CUTS), All rights reserved.
Dľ217, Bhaskar Marg, Bani Park, Jaipur 302 016, Rajasthan, India
Ph: 91.141.2282821, Fax: 91.141.2282485