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Kashmir Internet Shutdown Takes Toll on Economy – VOA News

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WASHINGTON / SRINAGAR – The internet shutdown in India’s Muslim-majority state of Jammu and Kashmir, which shows no signs of abating and has been the longest lockdown in a democracy, is taking a toll on the local economy and has led to the loss of thousands of jobs, according to rights groups and analysts. 

Access Now, a global digital rights group that has been monitoring the situation in Kashmir, told VOA the “loss of connectivity in the valley” because of the shutdown has been “devastating to the local economy.” 

“India’s internet shutdown in Kashmir is the longest ever in a democracy,” Raman Jit Singh Chima, Access Now’s senior international counsel and Asia Pacific policy director, told VOA. 

“The Kashmir Chamber of Commerce has gone on record to speak of the immense economic cost that the internet shutdown has caused to the region, undermining the very economic goals that the Union Government promised it would drive through integrating the area into the wider Indian Union,” Chima added. 

The lockdown has been in place since August, when New Delhi revoked Kashmir’s semiautonomous status and imposed a curfew on the region, including shutting down the internet. 

FILE – Indian security personnel guard outside the civil secretariat of the Union territory of Jammu and Kashmir during the annual reopening of the former state’s winter capital in Jammu, India, Nov. 4, 2019.

The government defended its decision, saying it was a temporary measure to prevent possible terrorist attacks. 

In a televised address to the nation in August, Prime Minister Narendra Modi said, “The Kashmir decision will bring positive changes in the lives of the common man. It would mean the protection of Indian laws, industrialization, a boost in tourism and, therefore, more employment opportunities.” 

However, opposition parties in the country argue the opposite is happening. 

“You have redefined the definition of normalcy, the J&K [Jammu and Kashmir] definition of normalcy now prevails in the rest of the country. This is uncaring and unthinking government,” Indian National Congress said on twitter this week in reference to what’s happening in Kashmir and the passage of a recent controversial law. 

India’s parliament recently approved legislation that allows Hindus, Christians and other religious minorities who are living in India illegally to become citizens. The applicants must prove they were persecuted because of their religious beliefs in neighboring Bangladesh, Pakistan or Afghanistan. 

However, the law does not apply to Muslims, which critics say is discriminatory. 

Terrorism or protests? 

India’s government, led by the ruling Bharatiya Janata Party (BJP), defends its continued lockdown of internet connectivity in Kashmir as a deterrent to terrorist attacks. 

While briefing the country’s lawmakers in November, Indian Home Minister Amit Shah, a close ally of Modi, said the internet would be restored as soon as local authorities felt it was appropriate. 

“There are activities by our neighbors in the region, so we must keep security in mind. Whenever local authorities see fit, a decision will be taken to restore it [internet service],” Shah said, referring to Pakistan’s alleged interference in the region. 

India has accused Pakistan’s intelligence agency of fomenting instability in Kashmir by supporting local militant groups, a charge Islamabad has denied. 

FILE – A Kashmiri boy throws rocks at a police drone over Jamia Masjid mosque where Kashmiris were offering their first Friday prayers since Aug. 5 in Srinagar, Kashmir, Dec. 20, 2019. The mosque was shut Aug. 5 as part of India’s security lockdown.

Some analysts, however, say the internet lockdown is largely designed to prevent collective political protests. 

“The stated reason [by the Indian government] was to contain possible terrorist attacks. In my view, it is largely designed to prevent collective political protests of any sort,” Sumit Ganguly, a professor of political science and the Tagore Chair in Indian Cultures and Civilization at Indiana University, told VOA. 

Other analysts, such as Ashok Swain, a professor of peace and conflict studies at Uppsala University in Sweden who follows Indian politics, said the reasons behind the Indian government’s decision to shut down the internet in Kashmir are multifaceted. 

“As I see [it], the real reason for [the] internet shutdown is not to restrict communication within Kashmir Valley, but to restrict Kashmir’s communication with [the] outside world,” Swain said, adding the government is more concerned about its global image as a democracy. 

“By taking away the internet, [the] regime is also controlling the local media and its publication as the journalists are dependent on [the] regime’s mercy to communicate with [the] outside world and to contact with their offices,” Swain said. 

Local economy 

Sheikh Ashiq, the president of the Kashmir Chamber of Commerce and Industry, told VOA that there has been a rapid rise in unemployment and a significant drop in Kashmir’s cottage industry. 

“Our handicraft sector, that is solely based on the internet, is at a standstill. As a result, 50,000 artisans are jobless,” Ashiq said, adding that the export of its heritage industry handicrafts had declined by 62%. 

Experts say the action against Kashmir has led to losses in tourism, health care, education and in the communications industries. 

“The state economy has lost more $1.5 billion due to [the] lockdown. Several companies, whose operations were internet-dependent, have been closed,” Swain said. 

The internet lockdown “has affected education, health service and even regular movement of the people, creating a severe humanitarian crisis. Business, particularly fruit trade and tourism, have [been] affected severely,” he added. 


Kashmir Economy Suffers Under Internet Shutdown video player.

Local voices 

Young Kashmiri entrepreneurs like Muheet Mehraj see a bleak future in Kashmir, as the internet shutdown has placed a cloud over future employment prospects. 

“If something doesn’t change for the better with time or our internet isn’t resumed, then I don’t understand what I am going to do in the future,” Mehraj told VOA. 

Many businesspeople told VOA they have been forced to leave Kashmir to earn an income. 

Syed Mujtaba, the owner of Kashmir Art Quest, shifted his business to Delhi because of the lockdown. 

“Eventually, my family and my own logic told me it was best to leave Kashmir,” Mujtaba told VOA. 

“Now I am in Delhi, you know … in search of new opportunity … and halfheartedly so, to be honest. My heart is still in Kashmir and will always remain in Kashmir,” he added. 

The government, however, continues to paint a normal picture of the situation on the ground. 

“The situation in Kashmir does not need to be normalized. The situation in Kashmir is already normal,” Home Minister Shah told lawmakers last month. 

Ashiq, of the Kashmir Chamber of Commerce, paints a different picture. 

“We are handed a narrative of development. However, we do not see any form of development,” he said. 

VOA’s Zubair Dar contributed to this story from Srinagar. 

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B.C.’s debt and deficit forecast to rise as the provincial election nears

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VICTORIA – British Columbia is forecasting a record budget deficit and a rising debt of almost $129 billion less than two weeks before the start of a provincial election campaign where economic stability and future progress are expected to be major issues.

Finance Minister Katrine Conroy, who has announced her retirement and will not seek re-election in the Oct. 19 vote, said Tuesday her final budget update as minister predicts a deficit of $8.9 billion, up $1.1 billion from a forecast she made earlier this year.

Conroy said she acknowledges “challenges” facing B.C., including three consecutive deficit budgets, but expected improved economic growth where the province will start to “turn a corner.”

The $8.9 billion deficit forecast for 2024-2025 is followed by annual deficit projections of $6.7 billion and $6.1 billion in 2026-2027, Conroy said at a news conference outlining the government’s first quarterly financial update.

Conroy said lower corporate income tax and natural resource revenues and the increased cost of fighting wildfires have had some of the largest impacts on the budget.

“I want to acknowledge the economic uncertainties,” she said. “While global inflation is showing signs of easing and we’ve seen cuts to the Bank of Canada interest rates, we know that the challenges are not over.”

Conroy said wildfire response costs are expected to total $886 million this year, more than $650 million higher than originally forecast.

Corporate income tax revenue is forecast to be $638 million lower as a result of federal government updates and natural resource revenues are down $299 million due to lower prices for natural gas, lumber and electricity, she said.

Debt-servicing costs are also forecast to be $344 million higher due to the larger debt balance, the current interest rate and accelerated borrowing to ensure services and capital projects are maintained through the province’s election period, said Conroy.

B.C.’s economic growth is expected to strengthen over the next three years, but the timing of a return to a balanced budget will fall to another minister, said Conroy, who was addressing what likely would be her last news conference as Minister of Finance.

The election is expected to be called on Sept. 21, with the vote set for Oct. 19.

“While we are a strong province, people are facing challenges,” she said. “We have never shied away from taking those challenges head on, because we want to keep British Columbians secure and help them build good lives now and for the long term. With the investments we’re making and the actions we’re taking to support people and build a stronger economy, we’ve started to turn a corner.”

Premier David Eby said before the fiscal forecast was released Tuesday that the New Democrat government remains committed to providing services and supports for people in British Columbia and cuts are not on his agenda.

Eby said people have been hurt by high interest costs and the province is facing budget pressures connected to low resource prices, high wildfire costs and struggling global economies.

The premier said that now is not the time to reduce supports and services for people.

Last month’s year-end report for the 2023-2024 budget saw the province post a budget deficit of $5.035 billion, down from the previous forecast of $5.9 billion.

Eby said he expects government financial priorities to become a major issue during the upcoming election, with the NDP pledging to continue to fund services and the B.C. Conservatives looking to make cuts.

This report by The Canadian Press was first published Sept. 10, 2024.

Note to readers: This is a corrected story. A previous version said the debt would be going up to more than $129 billion. In fact, it will be almost $129 billion.

The Canadian Press. All rights reserved.

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Mark Carney mum on carbon-tax advice, future in politics at Liberal retreat

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NANAIMO, B.C. – Former Bank of Canada governor Mark Carney says he’ll be advising the Liberal party to flip some the challenges posed by an increasingly divided and dangerous world into an economic opportunity for Canada.

But he won’t say what his specific advice will be on economic issues that are politically divisive in Canada, like the carbon tax.

He presented his vision for the Liberals’ economic policy at the party’s caucus retreat in Nanaimo, B.C. today, after he agreed to help the party prepare for the next election as chair of a Liberal task force on economic growth.

Carney has been touted as a possible leadership contender to replace Justin Trudeau, who has said he has tried to coax Carney into politics for years.

Carney says if the prime minister asks him to do something he will do it to the best of his ability, but won’t elaborate on whether the new adviser role could lead to him adding his name to a ballot in the next election.

Finance Minister Chrystia Freeland says she has been taking advice from Carney for years, and that his new position won’t infringe on her role.

This report by The Canadian Press was first published Sept. 10, 2024.

The Canadian Press. All rights reserved.

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Nova Scotia bill would kick-start offshore wind industry without approval from Ottawa

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HALIFAX – The Nova Scotia government has introduced a bill that would kick-start the province’s offshore wind industry without federal approval.

Natural Resources Minister Tory Rushton says amendments within a new omnibus bill introduced today will help ensure Nova Scotia meets its goal of launching a first call for offshore wind bids next year.

The province wants to offer project licences by 2030 to develop a total of five gigawatts of power from offshore wind.

Rushton says normally the province would wait for the federal government to adopt legislation establishing a wind industry off Canada’s East Coast, but that process has been “progressing slowly.”

Federal legislation that would enable the development of offshore wind farms in Nova Scotia and Newfoundland and Labrador has passed through the first and second reading in the Senate, and is currently under consideration in committee.

Rushton says the Nova Scotia bill mirrors the federal legislation and would prevent the province’s offshore wind industry from being held up in Ottawa.

This report by The Canadian Press was first published Sept. 10, 2024.

The Canadian Press. All rights reserved.

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