Tag Archives: competition

Criminal charges against banking ‘cartels’ show Australia is getting tough on competition law

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Barbora Jedlickova, The University of Queensland

A two-year probe by Australia’s consumer watchdog has resulted in criminal charges against ANZ, Citigroup and Deutsche Bank, as well as six of their senior executives, over alleged “cartel-like” behaviour.

The case, brought by the Commonwealth Director of Public Prosecutions (CDPP) after an investigation by the Australian Competition and Consumer Commission (ACCC), is the second prosecution of its kind to be brought in Australia since competition laws were tightened almost a decade ago.



Read more:
Cartel case shows not all corporate misbehaviour goes unpunished

The banks and six investment bankers are charged with cartel conduct related to the sale of A$2.5 billion worth of unsold ANZ shares to investors in August 2015. The ACCC alleges that senior executives from the three banks colluded in the way they dealt with these shares.

The exact details of the alleged criminal conduct will only become clear at a Sydney court hearing on July 3, 2018.

What is cartel behaviour?

Cartels are forms of anti-competitive conduct where cartel participants decide to stop competing and start colluding. Australian civil law has banned cartels for decades. But the practice only became a criminal offence in 2010. Only its serious forms are subject to criminal law; civil law still governs the rest.

Cartels can take different forms. In the most common instance, participants collude by setting their prices. Other forms include: output restrictions; dividing markets among cartel participants on mutually agreed terms; and bid-rigging, in which a commercial contract is decided in advance but other operators put in sham bids to give the appearance of competition.

There is one primary reason why businesses or executives would stop competing and start colluding: profit. In short, cartel participants cheat to get more money, creating higher prices and lower output in the process. This disadvantages consumers, the economy and society at large.

But proving criminal collusion in a court is harder than it might seem.

Beyond reasonable doubt

Although we need to wait for the case to unfold to find out more, what we can tell at this stage is that the ACCC and the CDPP perceive the alleged conduct as serious enough for it to constitute a criminal case. Criminal cases are harder to prove than civil cases. Cartel collusion must be proved beyond reasonable doubt, and the evidence has to show that the individuals involved knew (or believed) that they were colluding.

What these charges also show is that the ACCC and the CDPP are prepared to go after the most powerful corporations and their executives for alleged cartel-like conduct. This is an enormously important step for deterrence, because criminal charges are naturally more attention-grabbing than civil lawsuits.

Charging high-ranking bank executives will potentially make the deterrent more effective still, because high-ranking executives set the cultural tone for their organisations.

Research has shown that significant prison time – or the threat of it – for individuals is a more effective deterrent than civil penalties; especially if the penalties are not high enough, as was argued in the recent OECD report on corporate penalties for cartels in Australia. The report showed that the penalties applied in Australia were low in comparison with competition law regimes in the European Union and the United States.

Just the beginning?

This is the second Australian criminal case of cartel conduct – the first involved a Japanese company shipping cars to Australia. We can reasonably expect more of these kinds of charges in the future, given that the laws are only eight years old and investigations of this type typically take years to reach fruition. (The alleged cartel conduct in the latest case took place in August 2015, almost three years ago.)

There are differences in investigation procedures between criminal and civil cases, to ensure that collected pieces of evidence are admissible in a criminal proceeding. It is ultimately the CDPP’s (and not the ACCC’s) decision whether or not to prosecute.



Read more:
Cartels caught ripping off Australian consumers should be hit with bigger fines

The final step is for criminal proceedings to be prosecuted. The first cartel criminal case, which concerned the shipping industry, can be perceived as successful, with two global shipping companies pleading guilty.

It is still early days for Australia in terms of tracking down and punishing examples of cartel behaviour via criminal prosecutions. But the latest developments suggest that Australia is prepared to follow the example of the world leader in successful cartel-related criminal prosecutions: the United States.

The US criminal regime is one of the oldest in the world, having existed since 1890. The US boom of cartel-related criminal cases began in the late 1990s with the lysine cartel and the vitamin cartel and with the first foreign national being sentenced to imprisonment in July 1999. One of the first criminal cartel investigations inspired the production of the 2009 movie The Informant!.

The ConversationThe numbers further illustrate the success of the US criminal prosecutions. For instance, 27 corporations and 82 individuals were charged in the fiscal year 2011. Australia has a long way to go before it can match those numbers.

Barbora Jedlickova, Lecturer, School of Law, The University of Queensland

This article was originally published on The Conversation. Read the original article.

Budget 2017: lack of competition is why government is moving so hard against the banks

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Harry Scheule, University of Technology Sydney

With it’s latest budget the government has made a number of moves to create a level playing field in the banking system. It’s taxing the five largest banks, announced a review of rules around data sharing, a new dispute resolution system for banks and other financial institutions, and new powers for the regulator to make bank executives accountable. The Conversation

All of this is on top of a Productivity Commission inquiry into the competition within the Australian financial system, announced this week.

While some of these moves – such as the bank levy – will have a positive effect on making smaller banks more competitive, there are more policies that could be considered. These could include the separating out of the retail arms from the other areas of the large banks, increasing the capital requirements of larger banks to equal those of smaller banks, and developing new sources of funding for smaller banks.

More for competition

A new “one-stop shop” for dispute resolution will replace the existing three schemes – Financial Ombudsman Service, the Credit and
Investments Ombudsman and the Superannuation Complaints Tribunal. Called the Australian Financial Complaints Authority (AFCA), it will give consumers, businesses and investors a binding resolution process when dealing with financial services companies. The scheme will provide for a basis for more competition as disputes on financial services are consistently resolved regardless of the provider.

And A$1.2 million has been given to fund a review of an open banking system in which customers can request banks to share their data, which could assist financial startups and other competitors enter the market and compete against the big four banks. Banks will likely be forced to provide standardised application programming interfaces (API) that enable financial technology companies to provide services for interested consumers.

The government has also provided A$13.2 million to the Australian Competition and Consumer Commission (ACCC) to further scrutinise bank competition and to run the AFCA. This follows a House of Representatives report that called for an entity to make regular recommendations to improve competition and change the corporate culture of the financial industry.

The ACCC will provide Treasury with ongoing advise on how to boost competition in the sector. This may include a reduction of cost advantages of big banks, barriers to entry for new firms including change costs for consumers.

A more concentrated and changing finance sector

All of these changes come after a decade of consolidation and upheaval in the financial system, which has hurt competition and increased risk.

This chart shows the market shares of the big four Australian banks in terms of Australian loans and deposits:

Market share Big 4 banks.
Australian Prudential Regulation Authority

As you can see, since 2002 their market share has grown from 69.7% to 79.6% for loans and from 66.3% to 77.3% for deposits. Also, the gap between market dominance in loans versus deposits has closed since the global finance crisis. This means the big banks are attracting a greater share of bank deposits, which has an impact on the smaller banks.

With limited access to deposits, which is a relatively cheap way of raising capital, smaller banks have had to rely on the more expensive wholesale debt markets. Small banks also have difficulties to tap other funding sources such as covered bonds. This makes their products less competitive, and they have struggled as a result.

In part, that’s because a number of banks disappeared or merged with the big banks after the global financial crisis. This includes St George, Bankwest, Bendigo Bank, Aussie Home Loans, Adelaide Bank, RAMS and Wizard.

The Murray Inquiry found the big four banks have less than half the capital set aside for emergencies than some smaller financial institutions do. Again, this makes the smaller banks less competitive and needs to be addressed. The government should increase the capital requirements of larger banks to close the cost advantage for larger banks.

In addition, rising house prices have led to a further increase in the concentration of mortgage and other housing loans in the Australian banking system. Today Australian banks have about twice as many mortgages on their books as in the next highest developed economy.

New financial startups, such as peer-to-peer lenders, have entered the banking system. In time they may rival the big banks in areas like personal lending, but they remain small in terms of market share. And the big banks’ unwillingness to share data may be a hindrance.

Something needed to be done

The concentration in the banking sector does not provide the best outcome to all Australians. It has led to a low range and low quality of financial services as well as high costs. This needed to be addressed.

The new banking levy will support competition, as it pushes up the cost for the big banks. The review into data sharing could also be a boon to financial startups and other competitors, although we don’t yet know what the outcome will be.

But even stronger government actions may needed to create a level playing field. The government should consider separating out of the retail arms, from the other areas, of the large banks. Failing that, the low capital buffers of the big banks need to be addressed.

Harry Scheule, Associate Professor, Finance, UTS Business School, University of Technology Sydney

This article was originally published on The Conversation. Read the original article.

Rugby League: A Win is a Win – Just

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  1. Parramatta have won a another match in the NRL. It has been a long season for Parramatta fans (which includes me) and though this was a clash of the cellar dwellers in the NRL competition, a win is a win. It was just a win. The Parramatta Eels were trailing 18-6 at one point, but have stormed back and won in golden point (extra time) time, with a field goal sealing the win (on Sandow’s third attempt). So just a win… but a win is a win.

Religious Conversion Worst Form of ‘Intolerance,’ Bhutan PM Says

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Propagation of religion is allowable – but not seeking conversions, top politician says.

THIMPHU, Bhutan, April 13 (CDN) — In the Kingdom of Bhutan, where Christianity is still awaiting legal recognition, Christians have the right to proclaim their faith but must not use coercion or claim religious superiority to seek conversions, the country’s prime minister told Compass in an exclusive interview.

“I view conversions very negatively, because conversion is the worst form of intolerance,” Jigmi Yoser Thinley said in his office in the capital of the predominantly Buddhist nation.

Christian leaders in Bhutan have told Compass that they enjoy certain freedoms to practice their faith in private homes, but, because of a prohibition against church buildings and other restrictions, they were not sure if proclamation of their faith – included in international human rights codes – was allowed in Bhutan.

Prime Minister Thinley, who as head of the ruling party is the most influential political chief in the country, said propagation of one’s faith is allowed, but he made it clear that he views attempts to convert others with extreme suspicion.

“The first premise [of seeking conversion] is that you believe that your religion is the right religion, and the religion of the convertee is wrong – what he believes in is wrong, what he practices is wrong, that your religion is superior and that you have this responsibility to promote your way of life, your way of thinking, your way of worship,” Thinley said. “It’s the worst form of intolerance. And it divides families and societies.”

Bhutan’s constitution does not restrict the right to convert or proselytize, but some Non-Governmental Organizations have said the government effectively limits this right by restricting construction of non-Buddhist worship buildings and celebration of some non-Buddhist festivals, according to the U.S. Department of State’s 2010 International Religious Freedom Report.

It adds that Bhutan’s National Security Act (NSA) further limits proclamation of one’s faith by prohibiting “words either spoken or written, or by other means whatsoever, that promote or attempt to promote, on grounds of religion, race, language, caste, or community, or on any other ground whatsoever, feelings of enmity or hatred between different religious, racial, or language groups or castes and communities.” Violation of the NSA is punishable by up to three years’ imprisonment, though whether
any cases have been prosecuted is unknown, according to the State Department report.

Bhutan’s first democratic prime minister after about a century of absolute monarchy, Thinley completed three years in office last Thursday (April 7). While he affirmed that it is allowable for Christians to proclaim their faith – a practice commanded by Christ, with followers agreeing that it is the Holy Spirit, not man, that “converts” people – Thinley made his suspicions about Christians’ motives manifest.

“Any kind of proselytization that involves economic and material incentives [is wrong],” he said. “Many people are being converted on hospital beds in their weakest and most vulnerable moments. And these people are whispering in their ears that ‘there is no hope for you. The only way that you can survive is if you accept this particular religion.’ That is wrong.”

Thinley’s suspicions include the belief that Christians offer material incentives to convert.

“Going to the poor and saying, ‘Look, your religion doesn’t provide for this life, our religion provides for this life as well as the future,’ is wrong. And that is the basis for proselytization.”

Christian pastors in Thimphu told Compass that the perception that Bhutan’s Christians use money to convert the poor was flawed.

The pastors, requesting anonymity, said they prayed for healing of the sick because they felt they were not allowed to preach tenets of Christianity directly. Many of those who experience healing – almost all who are prayed for, they claimed – do read the Bible and then believe in Jesus’ teachings.

Asked if a person can convert if she or he believed in Christianity, the prime minister replied, “[There is] freedom of choice, yes.”

In his interview with Compass, Thinley felt compelled to defend Buddhism against assertions that citizens worship idols.

“To say that, ‘Your religion is wrong, worshiping idols is wrong,’ who worships idols?” he said. “We don’t worship idols. Those are just representations and manifestations that help you to focus.”

Leader of the royalist Druk Phuensum Tshogpa party, Thinley is regarded as a sincere politician who is trusted by Bhutan’s small Christian minority. He became the prime minister in April 2008 following the first democratic election after Bhutan’s fourth king, Jigme Singye Wangchuck, abdicated power in 2006 to pave the way toward democracy.

Until Bhutan became a constitutional monarchy in 2008, the practice of Christianity was believed to be banned in the country. The constitution now grants the right to freedom of thought, conscience and religion to all citizens. It also states that the king is the protector of all religions.

Thus far, the Religious Organisations Act of 2007 has recognized only Buddhist and Hindu organizations. As a result, no church building or Christian bookstore has been allowed in the country, nor can Christians engage in social work. Christianity in Bhutan remains confined to the homes of local believers, where they meet for collective worship on Sundays.

Asked if a Christian federation should be registered by the government to allow Christians to function with legal recognition, Thinley said, “Yes, definitely.”

The country’s agency regulating religious organizations under the 2007 act, locally known as the Chhoedey Lhentshog, is expected to make a decision on whether it could register a Christian federation representing all Christians. The authority is looking into provisions in the law to see if there is a scope for a non-Buddhist and non-Hindu organization to be registered. (See http://www.compassdirect.com, “Official Recognition Eludes Christian Groups in Bhutan,” Feb. 1.)

On whether the Religious Organisations Act could be amended if it is determined that it does not allow legal recognition of a Christian federation, the prime minister said, “If the majority view and support prevails in the country, the law will change.”

Thinley added that he was partially raised as a Christian.

“I am part Christian, too,” he said. “I read the Bible, occasionally of course. I come from a traditional [Christian] school and attended church every day except for Saturdays for nine years.”

A tiny nation in the Himalayas between India and China, Bhutan has a population of 708,484 people, of which roughly 75 percent are Buddhist, according to Operation World. Christians are estimated to be between 6,000 to nearly 15,000 (the latter figure would put Christians at more than 2 percent of the population), mostly from the south. Hindus, mainly ethnic Nepalese, constitute around 22 percent of the population and have a majority in the south.

 

Religious ‘Competition’

Bhutan’s opposition leader, Lyonpo Tshering Togbay, was equally disapproving of religious conversion.

“I am for propagation of spiritual values or anything that allows people to be good human beings,” he told Compass. “[But] we cannot have competition among religions in Bhutan.”

He said, however, that Christians must be given rights equal to those of Hindus and Buddhists.

“Our constitution guarantees the right to freedom of practice – full stop, no conditions,” he said. “But now, as a small nation state, there are some realities. Christianity is a lot more evangelistic than Hinduism or Buddhism.”

Togbay said there are Christians who are tolerant and compassionate of other peoples, cultures and religions, but “there are Christians also who go through life on war footing to save every soul. That’s their calling, and it’s good for them, except that in Bhutan we do not have the numbers to accommodate such zeal.”

Being a small nation between India and China, Bhutan’s perceived geopolitical vulnerability leads authorities to seek to pre-empt any religious, social or political unrest. With no economic or military might, Bhutan seeks to assert and celebrate its sovereignty through its distinctive culture, which is based on Buddhism, authorities say.

Togbay voiced his concern on perceived threats to Bhutan’s Buddhist culture.

“I studied in a Christian school, and I have lived in the West, and I have been approached by the Jehovah’s Witness – in a subway, in an elevator, in a restaurant in the U.S. and Switzerland. I am not saying they are bad. But I would be a fool if I was not concerned about that in Bhutan,” he said. “There are other things I am personally concerned about. Religions in Bhutan must live in harmony. Too often I have come across people who seek a convert, pointing to statues of our deities and saying
that idol worship is evil worship. That is not good for the security of our country, the harmony of our country and the pursuit of happiness.”

The premise of the Chhoedey Lhentshog, the agency regulating religious organizations, he said, “is that all the different schools of Buddhism and all the different religions see eye to eye with mutual respect and mutual understanding. If that objective is not met, it does not make sense to be part of that.”

It remains unclear what the legal rights of Christians are, as there is no interaction between the Christians and the government. Christian sources in Bhutan said they were open to dialogue with the government in order to remove “misunderstandings” and “distrust.”

“Thankfully, our political leadership is sincere and trustworthy,” said one Christian leader.

Asserting that Christians enjoy the right to worship in Bhutan, Prime Minister Thinley said authorities have not interfered with any worship services.

“There are more Christian activities taking place on a daily basis than Hindu and Buddhist activities,” he added.

Report from Compass Direct News
http://www.compassdirect.org

NRL Finals Series: Manly and New Zealand Gone – 6 Teams Remain

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The first weekend of the NRL final series has seen both the Manly Sea Eagles and the New Zealand Warriors eliminated from the competition. Remaining in the competition are St. George Dragons, Gold Coast Titans, Sydney Roosters, Canberra Raiders, Penrith Panthers and the West Tigers.

In week 2 of the final series St. George and the Gold Coast Titans get the weekend off.

Next weeks elimination matches will be between the Sydney Roosters and Penrith Panthers, and the Canberra Raiders and the West Tigers.

 

Rugby League: Parramatta Beginning to Find Form

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Parramatta have finally won two games back to back in the 2010 NRL premiership. It is only round 7, so there is still a long way to go in this year’s competition. With Melbourne all but a spent force this year given the salary cap crisis that has hit that club, Parramatta have it all to play for after loosing last year’s Grand Final to Melbourne, who have since been stripped of the 2009 premiership for being cheats.

Come on Parramatta – your die hard fans are urging you on the go one better in 2010!

 

Massive ‘Reconversion’ Event in India Aimed at Christians

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Hard-line cleric leads campaign in Maharashtra, ideological capital of Hindu nationalism.

MUMBAI, India, October 27 (CDN) — Hundreds of tribal Christians and adherents of aboriginal religion from villages in Maharashtra state were reportedly “reconverted” to Hinduism yesterday in the Mumbai suburb of Thane at a ceremony led by a Hindu nationalist cleric.

Swami Narendra Maharaj’s goal was to “reconvert” 6,000 Christians in the so-called purification ceremony, reported The Hindustan Times, which put the number of “reconversions” at around 800. Hindu nationalists believe all Indians are born Hindu and therefore regard acceptance of Hinduism by those practicing other religions as “reconversion.”

Maharaj, a Hindu cleric known for opposing proclamation of Christ, has allegedly led anti-Christian attacks in tribal regions. On March 15, 2008, his men reportedly attacked two Catholic nuns, Sister Marceline and Sister Philomena, from the non-profit Jeevan Jyoti Kendra (Light of Life Center) in Sahanughati, near Mumbai.

The attack took place in a camp to educate tribal women on HIV/AIDS, which also provided information on government welfare programs, according to Indo-Asian News Service. The assault in Sahanughati, Alibaug district was followed by a mass “reconversion” ceremony in the area on April 27, 2008, said Ram Puniyani, a well-known civil rights activist in Mumbai.

Rightwing Hindu groups are mostly active in tribal areas. Hindu nationalists attack Christians in tribal areas because they provide social and development services, regarded as competition by rightwing Hindus seeking to woo tribal voters, said Anwar Rajan, secretary of the People’s Union of Civil Liberties (PUCL) in Maharashtra’s Pune city.

Kandhamal district in the eastern state of Orissa, where a massive spate of anti-Christian attacks took place in August-September 2008, is also a tribal-majority area. At least 100 Christians were killed, 4,600 houses and churches were burned, and over 50,000 people were rendered homeless in the violence.

Sociologists maintain that India’s tribal peoples are not Hindus but practice their own ethnic faiths. Hindu nationalists run Ekal Vidyalayas (one-teacher schools) in tribal regions to “Hinduize” local villagers and repel conversions to other faiths. These schools are operating in over 27,000 villages of India.

Dubious Claims

An anonymous spokesman of Maharaj said the plan for yesterday’s event was to “reconvert” 6,000 Christians to achieve the larger goal of “bringing back” 100,000 Christians, according to the Press Trust of India (PTI) news agency.

The rightwing spokesman in Maharashtra, a western state where Hindu nationalism originated decades ago, claimed that Maharaj and his followers had overseen the conversion of more than 94,000 Christians “back to their original faith” and plan to complete the target of 100,000 in the next two years.

Maharaj, whose followers call him Jagat Guru (Guru of the World), told PTI that those who “reconverted” were not coerced.

“We are not having a religious conversion here – it’s a process of purification,” Maharaj was quoted as saying. “We taught them the precepts of the Hindu religion, and they decided to convert to Hinduism on their own after repentance. They were not forced.”

Many reports of “reconversions,” however, have been found to be false.

In 2007, Hindi-language daily Punjab Kesari reported that four Christian families in Nahan town, in the northern state of Himachal Pradesh, had “reconverted” to Hinduism. But a fact-finding team of the All India Christian Council revealed that none of the members of those families had ever converted to Christianity.

The Hindustan Times reported yesterday’s ceremony included rituals involving cow’s milk, seeking forgiveness from ancestors, installation of idols of the Hindu gods Ganesh and Vishnu, and an offering ritual performed by priests from Ayodhya, in the northern state of Uttar Pradesh. Ayodhya is believed to be the birthplace of the Hindu god Rama.

Home of Hindu Nationalism

The basic philosophy of Hindu nationalism was expounded by Vinayak Damodar Savarkar, popularly known as Veer Savarkar, in 1923 through the publishing of a pamphlet, “Hindutva: Who is a Hindu?” Savarkar, who is from Maharashtra, argued that only those who have their ancestors from India as well as consider India as their holy land should have full citizenship rights.

A follower of Savarkar, Madhav Sadashiv Golwalkar, also from Maharashtra, further developed the Hindu nationalist philosophy through a book, “A Bunch of Thoughts,” in 1966. He claimed superiority of Hinduism over other religions and cultures of the world.

“In this land, Hindus have been the owners, Parsis and Jews the guests, and Muslims and Christians the dacoits [bandits],” he said.

The emergence of Hindu nationalist ideology from Maharashtra came in reaction to the politics of social justice by Dr. Bhim Rao Ambedkar and Mahatma (Jyotirao) Phule, said Irfan Engineer, director of the Institute of Peace and Conflict Studies in Mumbai and an expert on religious conflicts. Phule led a mass movement of emancipation of lower castes, mainly Shudras and Ati-Shudras or Dalits, in the 1870s. Ambedkar, known as the architect of the Indian Constitution, began movements against “untouchability” in the 1920s.

Also born in Maharashtra was the Rashtriya Swayamsevak Sangh (National Volunteer Corps, or RSS), India’s most influential Hindu nationalist conglomerate. It was founded in 1925 in Nagpur by Dr. K.B. Hedgewar.

Hindu society has traditionally had four castes or social classes, namely Brahmin, Kshatriya, Vaishya and Shudra. While Shudras belong to the lowest caste, Dalits were formerly known as “untouchables” because the priestly Brahmin class considered them to be outside the confines of the caste system.

During British colonial rule in the Indian subcontinent between 1858 and 1947, sections of the Brahmins felt the British were sympathetic towards the Dalit reformist movement, said Engineer of the Institute of Peace and Conflict Studies. Mahars, Maharashtra’s largest Dalit people group, have been very organized and powerful since then.

The PUCL’s Rajan said that the Brahmins have long portrayed minorities as enemies of Hinduism.

“Since the Dalit reformist movement is essentially against the Brahmin hegemony, the Brahmins had to react and get organized,” Rajan said. “As a part of their strategy to weaken the reformist movement, Brahmins projected minorities as the ‘real’ enemies of all Hindus, including Dalits and other lower castes, diverting attention away from the atrocities they meted out on them.”

Most of the founding leaders of Hindu nationalism, including Savarkar, Hedgewar and Golwalkar, were Brahmins. Since communal troubles benefited Hindu nationalists politically, the use of divisive issues became routine for them, Rajan added.

After two successive defeats of the Bharatiya Janata Party, political wing of the RSS, in general elections in 2004 and 2009, differences between the moderate and extremist sections within the Hindu nationalist movement – which blame each other for the party’s downfall – have deepened to unprecedented levels.

In frustration, the extremists have accelerated their activities, especially in Maharashtra, the ideological capital, said Dr. Suresh Khairnar, a well-known civil activist from Nagpur.

Report from Compass Direct News 

Decline of traditional media

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Should the threat to traditional media from the internet really be a cause for concern?

The new social media — blogging, Facebook, MySpace, Twitter, and YouTube are current faves — revolutionising the publishing world, for better and worse. Let’s look at both the better and the worse in perspective.

The current tsunami of personal choices in communication is slowly draining the profit from mainstream media. These media traditionally depend on huge audiences who all live in one region and mostly want the same things (the football scores, the crossword, the TV Guide, etc.). But that is all available now on the Internet, all around the world, all the time.

One outcome is a death watch on many newspapers, including famous ones like the Boston Globe. As journalist Paul Gillin noted recently: “The newspaper model scales up very well, but it scales down very badly. It costs a newspaper nearly as much to deliver 25,000 copies as it does to deliver 50,000 copies. Readership has been in decline for 30 years and the decline shows no signs of abating. Meanwhile, new competition has sprung up online with a vastly superior cost structure and an interactive format that appeals to the new generation of readers.”

Traditional electronic media are not doing any better. As James Lewin observes in “Television audience plummeting as viewers move online” (May 19, 2008), mainstream broadcasters “will have to come to terms with YouTube, video podcasts and other Internet media or they’ll face the same fate as newspapers.”

Radio audiences have likewise tanked. Overall, the recent decline of traditional media is remarkable.

Some conservative writers insist that mainstream media’s failure is due to its liberal bias. But conservatives have charged that for decades — to no effect. Another charge is that TV is declining because it is increasingly gross or trivial. True enough, but TV’s popularity was unaffected for decades by its experiments with edgy taste.

Let’s look more closely at the structure of the system to better understand current steep declines. Due to the low cost of modern media technology, no clear distinction now exists between a mainstream medium and a non-mainstream one, based on either number of viewers or production cost. Today, anyone can put up a video at YouTube at virtually no cost. Popular videos get hundreds of thousands of views. Podcasting and videocasting are also cheap. A blog can be started for free, within minutes, at Blogger. It may get 10 viewers or 10,000, depending on the level of popular interest. But the viewers control that, not the providers.

The key change is that the traditional media professional is no longer a gatekeeper who can systematically admit or deny information. Consumers program their own print, TV, or radio, and download what they want to their personal devices. They are their own editors, their own filmmakers, their own disc jockeys.

Does that mean more bias or less? It’s hard to say, given that consumers now manage their own level of bias. So they can hear much more biased news — or much less. And, as Podcasting News observes, “Social media is a global phenomenon happening in all markets regardless of wider economic, social and cultural development.”

Understandably, traditional media professionals, alarmed by these developments, have constructed a doctrine of “localism” and, in some cases, called for government to bail them out. That probably won’t help, just as it wouldn’t have helped if the media professionals had called for a government “bailed out” of newspapers when they were threatened by radio, or of radio when it was threatened by TV. Video really did (sort of) kill the radio star, but the radio star certainly won’t be revived by government grants.

Still, the news is not all bad. Yes, new media do sometimes kill old media. For example, no one seriously uses pigeon post to send messages today. But few ever thought birdmail was a great system, just the only one available at the time. However, radio did not kill print, and TV did not kill radio. Nor will the Internet kill older media; it will simply change news delivery. Sometimes in a minor way, but sometimes radically.

Media that work, whether radio, TV, newspapers, books, blogs, or any other, thrive when there is a true need. Today’s challenge is to persuade the consumer to look at alternatives to their own programming decisions.

Denyse O’Leary is co-author of The Spiritual Brain.

The original news article can be viewed at:
http://www.mercatornet.com/articles/view/decline_of_traditional_media/

Article from MercatorNet.com

CRICKET: World Twenty20 – England Bounce Back

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England have bounced back following their shock loss to the Netherlands by winning their match against Pakistan in the Twenty20 World Cup in South Africa. England won by 48 runs, having scored 5/185 (Kevin Pieterson 58 from 38 balls & Luke Wright 34 from 16 balls). Pakistan could only manage 7/137 in reply (Younus Khan 46 not out from 31 balls).

 

 

In the other match played, South Africa scored 5/211 (AB De Villiers 79 not out from 34 balls and Jacques Kallis 48 from 31 balls), defeating Scotland by 130 runs. Scotland scored 10/81 (Kyle Coetzer 42 from 32 balls faced) in 15.4 overs. Scotland have now lost both their opening matches and will almost certainly be eliminated from the competition for the Super 8 round.

 

 

Australia must win their upcoming match against Sri Lanka if they are to have any hope of making it through to the round of 8. The pressure is now on the Australian team following the exile of Andrew Symonds following his breaking of team rules and return to Australia.

 

INDIA: STAKES HIGH FOR CHRISTIANS IN ELECTIONS

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Beleaguered minority has much to lose, gain in polls.

NEW DELHI, May 1 (Compass Direct News) – With elections underway in India, its 2.3 percent Christian minority – which faced a deadly spate of attacks in the eastern state of Orissa last year – is praying for a secular party to come to power.

Along with the Muslim community, Christians fear that if the Hindu nationalist Bharatiya Janata Party (BJP) and its allies form the next government or an ideologically loose coalition comes to the helm, their already compromised welfare may further deteriorate.

Dr. John Dayal, secretary general of the All India Christian Council, said that the end of the Congress Party’s monopoly on power in the 1990s led to the rise of several major individual groups, including the BJP, political wing of the Hindu extremist Rashtriya Swayamsevak Sangh (RSS) conglomerate.

“The rise of regional and linguistic or caste-based parties spells a danger for pan-national minorities, as parties with a narrow and localized outlook will have neither the strength nor the political need to come to their defense,” Dayal told Compass. “What is at stake now, as never before, is the stability and consistency of India’s constitutional institutions in their response to critical situations, their zeal to correct wrongs and their commitment to the welfare of the weakest and the lowest.”

Religious minorities, Dayal said, were hoping for a strong showing by a secular party, “possibly the Congress [Party],” supported by regional groups of a secular character.

“Personally, I would even welcome a Third Front [a grouping of anti-Congress Party and anti-BJP parties led by the Communist Party of India-Marxist] government supported by the Congress Party,” he added. “Certainly, a BJP-led government is the least desirable, as we fear major erosion and even regression in issues of freedom of faith, Dalit liberation and affirmative action for the poor.”

With the BJP in power, directly or as part of the ruling alliance, in 10 states – Madhya Pradesh, Himachal Pradesh, Uttarakhand, and Punjab in the north; Chhattisgarh and Bihar in the east; Gujarat in the west; Nagaland and Meghalaya in the northeast; and Karnataka in the south – he said Christians believe it is important that a strong, secular government comes into power at the federal level.

The federal government can issue warnings and ultimately dismiss state legislatures and state executives if they fail to protect the lives of their people or major unrest erupts. The federal government can also make laws applicable across the nation.

The BJP-ruled states have become “absolutely inhospitable” and “hostile” to Christians thanks to the “inaction of the federal government,” said Sajan K. George, national president of the Global Council of Indian Christians (GCIC).

 

Orissa, Andhra Pradesh

The eyes of Christians are also on state assembly elections in Orissa state.

Orissa is ruled by the Biju Janata Dal (BJD), which on March 7 broke its 11-year-old alliance with the BJP over the latter’s involvement in Kandhamal district violence. Elections in Orissa, held on April 16 and 23, are particularly important given that the results will either embolden Hindu nationalists to launch more attacks to polarize voters along religious lines or compel them to abstain from violence.

In December 2007, a series of brutal attacks began in Kandhamal. The violence that lasted for around 10 days killed at least four Christians and burned 730 houses and 95 churches under the pretext of avenging an alleged attack on Swami Laxmanananda Saraswati, a leader of the Vishwa Hindu Parishad (World Hindu Council).

Violence re-erupted in the district following the killing of Saraswati on August 23, 2008. A Maoist group took responsibility for the murder, but BJP supporters claimed that Christians were behind the assassination.

The BJP has made the killing of Saraswati its main election plank. The party’s two candidates from Kandhamal – Manoj Pradhan for the G. Udaygiri assembly seat and Ashok Sahu for the Kandhamal parliamentary constituency – contested the elections from jail. Pradhan, a primary suspect in the August-September 2008 violence, has been in jail for the last few months. Sahu, a former senior police official, was arrested on April 14 for delivering a hate speech against Christians in the run-up to elections. He was released on bail on April 17.

In its election campaign, the BJD promised to provide protection to the Christian community in Kandhamal and elsewhere in the state, putting the blame of the Kandhamal violence entirely on the BJP.

“It was important to break up with the BJP because I don’t consider them healthy any longer for my state after Kandhamal – which I think is very apparent to everyone,” Orissa Chief Minister Naveen Patnaik told CNN-IBN on April 19. “Before Kandhamal, we were lucky in the early years of the state government not to have a serious communal problem at all. But Kandhamal was very tragic and serious.”

According to the CNN-IBN private news channel, the Congress Party could benefit from the divorce of the BJD and the BJP. Nevertheless, the BJD is expected to form the next state government in Orissa.

The Congress Party, on the other hand, blamed both the BJD and the BJP for last year’s violence.

Elections in Kandhamal took place despite the fact that over 3,000 Christians were still in relief camps and hundreds of others had fled to others parts of the state fearing more tensions. Father Ajay Kumar Singh of the Catholic Archdiocese of Cuttack-Bhubaneswar reached Kandhamal from the neighboring Gajapati district early on April 16, election day.

“Along the way, we came across numerous felled trees blocking the road in at least six places,” Fr. Singh told Compass. “The roads were deserted, and my colleagues and I were scared. But we somehow managed to reach Kandhamal.”

He added that in Dharampur in Raikia Block and in Kattingia near Tiangia in G. Udaygiri Block – where eight Christians were killed during last year’s violence – Christians were threatened if they did not vote for the BJP.

In Nilungia village, seven kilometers (four miles) from G. Udaygiri, where a Christian was killed, at least 40 Christians did not cast their votes out of fear of a backlash, Fr. Singh said.

“They feared tensions if they returned to their village and stayed out of the district,” he said.

The Catholic Church in Orissa had urged the Election Commission of India to postpone elections in Kandhamal, but polls were held as scheduled.

According to the district administration, the poll turnout on April 16 in Kandhamal was around 55 percent.

The violence following Saraswati’s murder lasted for over a month, killing more than 127 people and destroying 315 villages, 4,640 houses, 252 churches and 13 educational institutions, besides rendering more than 50,000 homeless.

The incidence of Christian persecution is high in Andhra Pradesh, too. Analysts anticipate a neck-to-neck competition between the ruling Congress Party and the regional Telugu Desam Party (TDP), which recently allied with Left parties in the Third Front. The BJP is also in the fray but doesn’t appear strong enough to stake claim to power in the state.

 

Obscure Prognosis

With election results not due until May 16, the outlook at this point is murky.

“About all that can be said with certainty in the resulting alphabet soup of political parties is that the BJP won’t be aligning with Congress, or with the Left. Beyond that it’s a numbers game,” The Times of India noted in an editorial today. “Most observers agree that alignments determining who will form the next government will be decided only after the elections.”

The national daily added, “As India’s long, hot election summer grinds on, with the third phase held yesterday and the fifth and final phase not scheduled before the 13th of this month, it’s regrettable that no overarching themes have emerged even at this late stage, which can define the election.”

With 714 million eligible voters of the more than 1 billion people in the country, the five-phase elections for the 15th Lok Sabha (Lower House of Parliament) and for the state assemblies of Orissa, Andhra Pradesh and the north-eastern state of Sikkim began on April 16.

The three main parties are the left-of-center Congress Party (officially known as the Indian National Congress), which leads the governing United Progressive Alliance (UPA); the Hindu nationalist BJP, a leading party of the opposition National Democratic Alliance (NDA); and the Third Front.

A party and its allies need 272 members to rule in the 545-member Lok Sabha.

 

Expediency over Ideology

The regional and caste parties involved include the Bahujan Samaj Party (BSP), headed by Dalit (formerly “untouchable”) woman Mayawati, chief minister of Uttar Pradesh state in the north; and the Samajwadi Party (SP), also a powerful party in that state.

Other significant parties are the Janata Dal-United (JD-U) party and the Rashtriya Janata Dal (RJD) party in the eastern state of Bihar; the BJD in Orissa; the Trinamool Congress party in the eastern state of West Bengal; the Nationalist Congress Party (NCP) and the Shiv Sena party in the western state of Maharashtra; the All India Anna Dravida Munnetra Kazhagam (AIADMK) party and the Dravida Munnetra Kazhagam (DMK) party in the southern state of Tamil Nadu; the TDP and Telangana Rashtriya Samiti (TRS) party in the southern state of Andhra Pradesh, and the Janata Dal-Secular (JD-S) party in the southern state of Karnataka.

The Congress Party is hoping that it will be supported by the SP, the RJD, the Trinamool Congress party, the NCP, the DMK, and the TRS in case it emerges as the single-largest party post-elections. The JD-U, the Shiv Sena and the AIADMK, on the other hand, are likely to extend their support to the BJP-led NDA. The BSP, the BJD, the TDP, and the JD-S are expected to join the Third Front.

Most of these smaller parties, however, are keeping their options open and will formally declare their allegiances only after the results are announced on May 16.

 

Decade of Persecution

The concern of Indian Christians can be understood against the backdrop of the decade since 1998, when the BJP, under the aegis of the NDA, came into power at the federal level, marking the beginning of systematic persecution of Christians.

In January 1999, an Australian missionary, Graham Staines, and his two young sons were burned alive in Orissa’s Keonjhar district. From 2000 to 2004, around 200 anti-Christian attacks were reported each year from various parts of the nations. In March 2004, India’s second massive spate of anti-Christian attacks took place in the Jhabua district of the central state of Madhya Pradesh.

The incidence of persecution remained high despite the change of the federal government in mid-2004 – after the Congress Party-led UPA defeated the BJP-led NDA.

At least 165 anti-Christian attacks were reported in 2005, and over 130 in 2006. Including the Orissa attacks, the total number of violent anti-Christian incidents rose to over 1,000 in 2007. And 2008 turned out to be the worst year for the Christians as violence returned in Kandhamal.

“The results of the elections on May 16 will show whether the ideology of Mohandas Karamchand Gandhi, the father of the nation who promoted communal harmony, will prevail in India, or that of his killer Nathuram Godse, allegedly a member of the RSS,” said George of the GCIC.

Report from Compass Direct News