Sunday, June 28, 2015

Banks close in Greece as crisis deepens; Why we should care about inequality; The perils of being an Indian journalist

1 Banks close in Greece as crisis deepens (Ian Traynor, John Hooper & Helena Smith in The Guardian) Greeks find their savings blocked and their banks closed for a week from Monday morning following a fateful weekend that has shaken Europe’s single currency.

The Greek government decided on Sunday night it had no option but to close the nation’s banks the following day after the European Central Bank (ECB) raised the stakes by freezing the liquidity lifeline that has kept them afloat during a six-month run on deposits.

The Athens Stock Exchange will not reopen on Monday either. The dramatic move, after 48 hours of sensational developments in Greece’s long-running battles with creditors, was sparked by the country’s prime minister, Alexis Tsipras’s Friday night call for a referendum on its creditors’ demands. That prompted finance ministers of the eurozone to effectively put an end to his country’s five-year bailout by the International Monetary Fund, the ECB and the European commission.

Greek banks will not open until July 7 in an attempt to avoid financial panic, after ECB capped the emergency funds keeping them running The prime minister said that Saturday’s move by the eurozone’s finance ministers to halt Greece’s bailout programme was unprecedented. He called it “a denial of the Greek public’s right to reach a democratic decision”.

During a marathon parliamentary debate that ended in the early hours of Sunday morning, opposition leaders argued that it was, in fact, a vote on whether Greeks wished any longer to be part of the eurozone. It will be Greece’s first referendum since the country voted to abolish its monarchy in 1974.

“We are millimetres away from the total collapse of the Greek financial system,” warned Herman Van Rompuy, until last year the president of the European Council and heavily involved in years of Greek rescue negotiations. “It’s actually suicide that’s taking place in Greece right now.”


2 Why we should care about inequality (Andrew Leigh in Sydney Morning Herald) Dutch economist Jan Pen once suggested a simple way of visualising the amount of inequality in a society. Imagine, he suggested, a parade in which each person's resources were represented by their height.

Suppose we were to conduct such a parade in Australia. People of average wealth would be average height. Those with half the average wealth would be half the average height. Those with twice the average wealth would be twice the average height. Let's suppose the parade took an hour to pass you. What would you see?

For the first half a minute, people would be literally underground. By the 10-minute mark, people are the size of a child's doll. They might own an old car. Twenty minutes have gone by, but still the marchers are no taller than a newborn baby. Ten minutes to go, the marchers are two and a half metres tall, and their heights are rising fast. Five minutes till the end of the parade, and the marchers are four metres high. Now come the giants. Ten metres high, then fifty, then one hundred metres high. Their shoes are as big as the watchers; their faces as high as office buildings.

One-thirtieth of a second before the end of the march, and we're into the BRW rich list. The poorest person on the BRW rich list is twice as high as Centrepoint tower. The rest are taller still. Now, their heads poke into the clouds. The tallest person in the parade is over 30 kilometres high – well on the way to outer space.

Maintaining pro-growth policies, improving our education system and ensuring our welfare spending is targeted to the neediest are good first steps at closing the gulf between the rich and the rest. But this isn't all that needs to be done. Here are three more egalitarian ideas that governments and policymakers should consider:

A. Put new policy ideas under the equality lens. B. Encourage ethical behaviour by firms and executives. C. 3. Consider inequality in competition policy. Our current competition law is silent on the issue of equity. Inequality is fast becoming a central issue of our age. Pen's Parade reminds us that the disparities between rich and poor are significant. A richer conversation about inequality is not only in the interests of the disadvantaged, but of all Australians who want to maintain a fair society.


3 The perils of being an Indian journalist (Zubair Ahmed on BBC) Shahjahanpur in India’s Uttar Pradesh state may be a small town by Indian standards, (population 400,000 as of 2011) but it boasts of no fewer than 150 journalists. Poor communications and woefully inadequate infrastructure have not deterred them from their chosen profession.

They are currently working on a story that saw their town catapulted into the national spotlight. Ironically, it is about the death of one of their fraternity, Jagender Singh, who succumbed to burn injuries following a police raid on his house in early June. Mr Singh ran a Facebook page with thousands of followers, where he posted largely unconfirmed stories on corruption involving government officials and ministers.

Mr Singh's son Rajan told the BBC that his father was regularly harassed by police officers at the behest of a state minister, Ram Murti Singh Verma, who was reportedly a regular subject of Mr Singh's stories. He alleged that, on the day his father died, a group of policemen acting on Mr Verma's orders set him on fire during a raid on their home.

In another incident not long after the death of Mr Singh, another journalist, Sandeep Kothari from Madhya Pradesh in central India, was also burnt to death. Like Mr Singh, Mr Kothari wrote on corruption, but he specifically targeted the mining mafia.

The two deaths are the latest in a number of attacks on journalists working in towns outside India's big cities. They say their confidence is shaken and that they fear for their lives. The Press Council of India (PCI) says 79 journalists have been murdered in India over the past 25 years.

Sardar Sharma was Jagender Singh's boss for three years. He lamented the loss of respect for journalists and blamed reporters themselves for the situation. "There is a criminal nexus between many journalists, politicians and police. Such journalists are fake. They indulge in extortion and blackmail. They have let us down", he said. When reporters are not attached to a specific media organisation, it is much easier to intimidate and threaten them.

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