23 August 2024 : Indian Express Editorial Analysis

1. Managing political risk

(Source: Indian Express; Section: The Editorial Page; Page: 12)

Topic: GS2– International Relations

Context:

The article discusses the political risks that Indian companies face when investing in neighboring countries, particularly in light of the recent political crisis in Bangladesh and rising anti-India sentiment.

Political Crisis in Bangladesh and Anti-India Sentiment

• The ongoing political crisis in Bangladesh, coupled with a renewed wave of anti-India sentiment, has reignited discussions among analysts about the nature of political risks that Indian companies face when investing abroad.
• The proximity of these challenges highlights that political risks are not just an issue in far-flung regions, but are particularly pertinent in South Asia, where Indian businesses have historically encountered significant hurdles.
• These challenges are often driven by domestic political dynamics in neighboring countries, which can swiftly turn hostile to foreign investments, especially those from India.

Historical Challenges Faced by Indian Companies

• Indian companies have a long history of dealing with political risks in neighboring countries.
• For example, in 2004, a proposal by the Tata Group to invest up to $3 billion in Bangladesh’s energy sector was abandoned due to political instability.
• Similarly, in 2009, the Dabur group faced a consumer backlash in Nepal that was perceived to be politically motivated.
• More recently, in 2013, a newly elected government in the Maldives terminated an airport construction project awarded to the GMR group by its predecessor.
• Even the Adani group has encountered difficulties in Sri Lanka, where local government officials alleged political pressure from India in the awarding of a contract.
• These incidents underscore the complex and often volatile political environments that Indian businesses must navigate in the region.

The Role of the Indian Government and Political Risk Management

• Prime Minister Narendra Modi has been actively encouraging Indian companies to invest overseas and become global corporations. However, the reliance on the Indian government for protection against political risks abroad introduces another layer of risk.
• What happens when the political leader offering protection is no longer in power or unable to keep their promises? This uncertainty is a significant factor that company boards must consider when evaluating foreign ventures.
• Political risk management should not be left to chance; instead, it requires a proactive approach, including building relationships and understanding the political landscape in the host country.

Political Risk in Developed Economies

• While developed economies are generally considered to have more predictable policy environments, political risk is still a factor.
• Indian businesses have had to contend with domestic politics even in these regions.
• For instance, Lakshmi Mittal faced European political challenges during his bid to take over Arcelor, a major cement multinational corporation.
• Similarly, Infosys had to engage with American politicians to demonstrate that their operations were benefiting the U.S. economy, not just India.
• These examples illustrate that political risk is a global concern, not limited to developing countries.

The Need for Political Risk Assessment in Indian Firms

• Indian companies have employed various strategies to manage political risk, ranging from building personal relationships with influential figures in the host country to seeking protection from the Indian government or consulting with Indian diplomats.
• Despite these efforts, there has been a lack of systematic political risk assessment.
• The absence of a strong demand for political risk insurance in India has hindered the development of this field, leaving businesses vulnerable to unforeseen political changes.

The Role of Media and Foreign Correspondents

• In the past, foreign correspondents have played a crucial role in providing information that could inform political risk assessments.
• Their reports often filled the gap between academic research and governmental advice, offering valuable insights into the political climate of a country.
• However, Indian media’s investment in foreign correspondents has been limited, leading to a lack of on-the-ground expertise.
• This gap in reporting can leave both businesses and the government unprepared for sudden political shifts, as seen in the recent events in Bangladesh.

The Importance of Area Studies and Expertise

• As India continues to expand its global footprint, there is a growing need for specialized knowledge in the internal politics and policies of countries where Indian companies are investing.
• Think tanks and research institutions in India should not only focus on foreign policy but also on the domestic political environments of these countries.
• By developing local expertise, Indian businesses can better navigate the complexities of international investments and mitigate the risks associated with political instability.

Conclusion

• The political crisis in Bangladesh and the resurgence of anti-India sentiment underscores the importance of robust political risk management for Indian companies investing abroad.
• As these businesses continue to expand globally, there is a pressing need for a more systematic approach to assessing and managing political risks, supported by specialized research and expertise in the political landscapes of target countries.

Practice Question:  Discuss the challenges Indian companies face due to political risks in neighboring countries, with specific reference to recent events in Bangladesh. How can Indian firms better manage these risks when investing abroad? (250 words/15 m)

2. FOR DIGNITY IN THE END

(Source: Indian Express; Section: The Editorial Page; Page: 12)

Topic: GS4– Ethics

Context:

The article discusses a recent Supreme Court judgment that denied a request to remove a Ryles tube from a patient in a vegetative state, highlighting the legal and ethical complexities surrounding euthanasia in India. It examines the medical ethics involved, the cultural perceptions of death, and the need for legal clarity and better end-of-life care planning.

Legal and Ethical Confusion Surrounding Euthanasia in India

• The recent Supreme Court judgment highlights the ongoing legal and ethical ambiguities surrounding euthanasia in India.
• The case involved Harish Rana, a 32-year-old in a vegetative state for 11 years, whose parents were denied permission to remove his Ryles tube—a device used for feeding through the nose.
• Despite the Supreme Court’s 2018 ruling that allows the withdrawal of life support in terminal cases, the bench led by Chief Justice D.Y. Chandrachud ruled that the Ryles tube is not considered a life support system, thereby denying the request.

Passive Euthanasia and the Debate on Life-Prolonging Measures

• The term “passive euthanasia,” adopted by the Supreme Court in 2018, refers to allowing a natural death by withholding or withdrawing life-prolonging measures for terminal patients.
• However, the term is somewhat misleading, as euthanasia typically implies an intent to hasten death, whereas passive euthanasia allows for a natural death without intervention.
• The court’s interpretation raises questions about what constitutes life support, as ventilators and life-sustaining drugs are clear examples, but clinically-assisted nutrition and hydration, including the use of a Ryles tube, also fall under this category.
• The court’s decision to not consider the Ryles tube as life support creates a medical and ethical dilemma.

Medical Ethics and the Four Pillars

• The judgment brings into focus the four pillars of medical ethics: beneficence, non-maleficence, justice, and autonomy.
• Beneficence obliges the physician—or in this case, the court—to act in the patient’s best interest.
• Non-maleficence requires decision-makers to avoid causing harm.
• Justice ensures that the patient’s rights are not exploited, while autonomy grants the patient the right to make decisions about their own care.
• In Harish Rana’s case, these ethical principles appear to have been compromised, as the denial of his parents’ request may have caused unnecessary suffering and denied him the right to a dignified death.

The Emotional and Cultural Context of Death and Dying

• The Supreme Court’s decision also reflects a broader cultural fear and misunderstanding of death and dying in India.
• Death resulting from passive euthanasia is often seen as morally wrong, rather than as a release from prolonged suffering.
• The act of feeding, deeply ingrained in cultural practices as a symbol of care and love, complicates decisions regarding the withdrawal of artificial feeding.
• The physical and emotional toll on both the patient and caregivers, as illustrated by Harish Rana’s case, underscores the need for a more compassionate approach to end-of-life care.

The Need for Legal Clarity and Advance Care Planning

• This case underscores the urgent need for legal clarity on the distinction between euthanasia and the withdrawal of futile life-sustaining interventions.
• Involving medical and ethical experts in such decisions could prevent unnecessary suffering for patients and their families.
• Additionally, raising awareness about rights and options, such as Advance Care Planning and Advance Medical Directives, could empower individuals to make informed decisions about their own end-of-life care.
• Ultimately, ensuring a good quality of life and death is a fundamental right that should be protected and respected by the legal system.

Euthanasia in India

In a landmark judgement, the Supreme Court of India legalised passive euthanasia in 2018, stating that it was a matter of ‘living will’. According to the judgement, an adult in his conscious mind is permitted to refuse medical treatment or voluntarily decide not to take medical treatment to embrace death in a natural way, under certain conditions. It also laid down guidelines for ‘living will’ made by terminally ill patients who beforehand know about their chances of slipping into a permanent vegetative state. The court specifically stated that “Dignity in the process of dying is as much a part of the right to life under Article 21. To deprive an individual of dignity towards the end of life is to deprive the individual of a meaningful existence.” Different Countries with Euthanasia: Netherland, Luxembourg, Belgium allows both euthanasia and assisted suicide for anyone who faces “unbearable suffering” that has no chance of improvement. Switzerland bans euthanasia but allows assisted dying in the presence of a doctor or physician. Canada had announced that euthanasia and assisted dying would be allowed for mentally ill patients by March 2023; however, the decision has been widely criticised, and the move may be delayed. United States has different laws in different states. Euthanasia is allowed in some states like Washington, Oregon, and Montana.

Practice Question:  Discuss the ethical and legal challenges surrounding euthanasia in India, in light of recent Supreme Court judgments. How do cultural perceptions of death influence these debates, and what steps can be taken to ensure clarity in end-of-life care decisions? (250 words/15 m)