Vol. xliv No.5 Jan.31-Feb.6, 2009 EDITORIALS Accetance of Corruption 5 Suspension of Disbelief 6 Russia's Gas War 6 FROM 50 YEARS AGO 7 LETTER FROM SOUTH ASIA Pakistan: The Threat Within - Haris Gazsdar 8 COMMENTARY How Not to fight Terrorism - Mukul Sharma 10 Ensuring Horizontal Equity: Challenge before the Thirteenth Finance Commission - Keshab Das, Aswini Kumar Mishra 14 Accentuating the social Divide - R Uma Maheshwari17 Climate Change: Separating the wheat from the Chaff-Daljit Singh, Girish Sant, Ashok Sreenivas19 Rethinking the Rotation Term of Reservation in panchayats - Nupur Tiwari 23 Bangladesh War of Independence: A Moral Issue - Mokerrom Hossain 26 BOOK REVIEWS Power and Contestation: India since 1989: Two kinds of Politics - Sanjay Palshikar 30 Colonial Modernization and Gandhi: A Re-examination of Gandhi - Sumanta Banerjee 32 PERSPECTIVES A Failed World View - Amit Bhaduri 35 SPECIAL ARTICLES Is Service Sector Output Overestimated? An Inquiry R Nagaraj40 Sri Lanka at Sixty: A Legacy of Ethnocentrism and Degeneration - Neil Devotta 46 Mobilising Non-TAx Revenue: An Empirical Analusis of Trends in States - Mahesh C Purohit, VIshnu Kanta Purohit 54 NOTES Real Estate and Agricultural Wetlands in Kerala - P P Nikhil Raj, P A Azeez 63 DISCUSSION 'How Many Poor in the World?': A Critique of Ravallion's Reply - S Subramanian 67 CURRENT STATISTICS 72 LETTERS 74 NOTES FOR CONTRIBUTORS 74