Monday 26 May 2014

Daily News Compilation (HINDU) for 25th May

Backchannel talks with Pak. likely


During Nawaz Sharif’s Visit there is a possibility that talks may be held to setup a secret diplomatic channel to manage any future crisis between the two nuclear armed nations
Gyaan:
Tracks of Diplomacy

Traditionally, the term "diplomacy" referred to interaction between nation-states. More recently, however, scholars have delineated several levels of diplomacy. Tracks 1 and 2 are the most frequently used terms. A composite term is multitrack diplomacy.

Track 1 diplomacy: Official discussions typically involving high-level political and military leaders and focusing on cease-fires, peace talks, and treaties and other agreements.

Track 2 diplomacy: Unofficial dialogue and problem-solving activities aimed at building relationships and encouraging new thinking that can inform the official process. Track 2 activities typically involve influential academic, religious, and NGO leaders and other civil society actors who can interact more freely than high-ranking officials. 

Some analysts use the term track 1.5 to denote a situation in which official and non-official actors work together to resolve conflicts.

Track 3 diplomacy: People-to-people diplomacy undertaken by individuals and private groups to encourage interaction and understanding between hostile communities and involving awareness raising and empowerment within these communities. Normally focused at the grassroots level, this type of diplomacy often involves organizing meetings and conferences, generating media exposure, and political and legal advocacy for marginalized people and communities.

Multitrack diplomacy: A term for operating on several tracks simultaneously, including official and unofficial conflict resolution efforts, citizen and scientific exchanges, international business negotiations, international cultural and athletic activities, and other cooperative efforts. These efforts could be led by governments, professional organizations, businesses, churches, media, private citizens, training and educational institutes, activists, and funders.


Backchannel diplomacy refers to secret lines of communication held open between two adversaries. It is often communicated through an informal intermediary or through a third party.

Backchannel communication refers to a secondary conversation that takes place at the same time as a conference session, lecture, or instructor-led learning activity.

In a partial lifting of a transaction freeze, an Italian court on Saturday allowed India to encash bank guarantees, worth about Rs. 1,818 crore, deposited by AgustaWestland in a bank there in the VVIP chopper deal which was scrapped because of bribery allegations.
After the Rs.3600-crore deal was cancelled on January 1 this year, India had initiated the process to seize bank guarantees deposited in banks in Italy and India.
While the money deposited in Indian banks was encashed, the Italian court had stayed the process of seizure in that country.

ONGC to drill near Chennai

The Oil and Natural Gas Corporation (ONGC) will spud (begin drilling) its first-ever well in the Palar basin at a village called Chinnapuliyur, near Gummidipoondi, about 45 km from Chennai, on Sunday.
The Palar basin is located between two hydrocarbon-producing basins in the South — the Krishna-Godavari basin in the north and the Cauvery basin to the south.

A day before Ukraine was to elect a new President the rebellious Russian-speaking regions ramped up their rebellion against Kiev, deciding to form a new independent state.
The formation of Novorossiya, or New Russia, as the eastern part of Ukraine was called in the 19th century, was announced at a meeting of pro-independence activists from Ukraine’s eight southeast provinces in Donetsk.
Novorossiya will initially be made up of the “People’s Republics” of Donetsk and Luhansk, which declared their independence earlier this month. It is planned that six more regions — Nikoyayev, Odessa, Dnepropetrovsk, Kharkiv, Zaporozhie and Kherson, will join the new state after holding referendums on independence, similar to those held in Donetsk and Luhansk held in May.

Daily News Compilation (HINDU) for 24th May

Inviting the neighbours

By inviting the South Asian Association for Regional Cooperation (SAARC) leaders to his swearing-in ceremony, Prime Minister-designate Narendra Modi has sent out a powerful message on foreign policy. 

India’s record of engagement
The other important move he has made is a quieter one — calling all economic ministries, to which the external affairs ministry could soon be included, to send in reports on policies that the United Progressive Alliance (UPA) failed to implement, as well as the impractical policies it adopted. 

In fact, there are many parts in his predecessors’ foreign policy book that Mr. Modi might well want to take a leaf out of:
The first is Dr. Singh’s creative thinking on the neighbourhood. Despite India’s many broken promises of the past decade, Dr. Singh will be remembered as a leader with both vision and a heart, even as the Indian foreign policy establishment learnt to give more than it sometimes received from its neighbourhood. Whether it was Dr. Singh’s focussed drive for better relations with Pakistan, or Indian concessions on trade with Bangladesh, or the massive reconstruction and infrastructure-building efforts undertaken in Afghanistan and Sri Lanka, India’s SAARC engagement has helped its standing in the region.
The other feature that marked Dr. Singh’s tenure was his loyalty to multilateral forums in the face of opposition. It was not just SAARC and the Non-Aligned Movement but also the building of BRICS (along with Brazil, Russia, China and South Africa) that gave India a prominence on the world stage that held it in particular stead in the past few years. It remains to be seen if Mr. Modi will place as much weight on India’s bid for a U.N. Security Council permanent seat, or if that is even desirable, but it is important for India to be seen as dealing with the world on its own terms. To that end, Mr. Modi will engage with BRICS leaders as early as mid-July, when he is expected to travel to Brazil to attend the summit along with Russian President Putin and Chinese President Xi Jinping.

Stepping up economic diplomacy
Perhaps the part of Dr. Singh’s foreign policy that Mr. Modi will most want to take forward will be the focus of the economist prime minister on economic diplomacy. This is one aspect “Candidate” Modi has been most positive about, on show even at a lecture he delivered at the University of Madras last year entitled “India and the World.” “A strong economy is the driver of an effective foreign policy,” he is quoted as saying. “We have to put our own house in order that the world gets attracted to us.”
Interestingly, the other part of Dr. Singh’s economic diplomacy is the quest for nuclear energy as an alternative source, and officials in Canberra will hope that Mr. Modi’s visit will also see the signing of the India-Australia uranium deal.
Meanwhile Mr. Modi’s push for “economic officers” in every embassy could pave the way for a much needed revision of the Indian Foreign Service’s size. In 2012, the Ministry of External Affairs (MEA) recorded a strength of about 815 officers, a fraction of the roughly 20,000 the United States has, or the 5,000 that China appoints. Built into that will be the need for more “lateral entrants,” experts on regions, security and trade from other services, as well as from outside the government, who could then be posted worldwide.
In these endeavours, Mr. Modi will not have to carry many of the burdens of his predecessor. To begin with, his electoral mandate means that he isn’t dependent on the approval of State governments that could try to block him, in the manner in which the Mamata Banerjee government blocked the United Progressive Alliance (UPA) on the Teesta deal with Bangladesh, or the Dravida Munnetra Kazhagam (DMK) and the All India Anna Dravida Munnetra Kazhagam (AIADMK) governments in Tamil Nadu threatened ties with Sri Lanka over the UNHRC vote. While Mr. Modi has often said that he wants State governments to drive foreign policy with the neighbouring country concerned, he is hardly likely to regard their opposition to policies he chooses, as is clear from his decision to invite Sri Lankan President Rajapaksa for his swearing-in despite the Tamil Nadu Chief Minister’s statement of protest. Moreover, if he decides to build better business ties with Pakistan, he will only be helped by governments in Punjab and Jammu and Kashmir who stand to gain from border and LoC trade.
Unlike Dr. Singh, Mr. Modi’s policies will be unchallenged by his party. The Congress party’s disavowal of the Sharm el-Sheikh declaration will probably stand out as a watershed moment in Dr. Singh’s foreign policy, and he never quite stopped looking over his shoulder after that on ties with Pakistan. If UPA-II began on that note, it ended with Dr. Singh’s humiliation on the international stage, when hours before his meeting with U.S. President Barack Obama in Washington, his party’s vice-president Rahul Gandhi addressed a press conference “tearing up” his government’s policy ordinance on corruption. Mr. Modi’s tight control over the Bharatiya Janata Party, which was clear during his electoral campaign indicates that the party will probably not undermine him in that manner.
Nor will Mr. Modi be hampered by the opposition that Dr. Singh had. The Congress is not just short of numbers to do so; leaders of the party will hardly oppose the National Democratic Alliance’s policies, if they choose to forge ahead on ties in the neighbourhood with anything nearing the ferocity with which the BJP and the Left parties ripped into Dr. Singh’s foreign policy initiatives on Pakistan and the U.S. respectively.
Perils of the past
Despite all that, Mr. Modi faces the perils of the past — terror groups for example, and some within the establishment in Pakistan who will attempt to sabotage any plans for peace talks with an attack. Already, the attack on the Indian consulate in Herat is being chalked up to Inter Services Intelligence (ISI)-backed Taliban elements. Moreover, every skirmish at the LoC with Pakistan or the Line of Actual Control (LAC) with China will also be looked at closely by those who expect a tougher stance from Mr. Modi; he will have to establish a stronger control of the narrative, that has often been left to the military and security establishments in the past few years.
Some of the perils arise from Mr. Modi’s own past and his record on the 2002 Gujarat riots. As a result, his government’s actions on internal disturbances — riots and insurgencies — will be scrutinised by India’s neighbours for any hint of “majoritarian” bias. 

Nepal glaciers shrink by quarter in 30 years: study

Climate change has caused Nepal’s Himalayan glaciers to shrink by nearly a quarter in just over 30 years, raising the risk of natural disasters in the ecologically fragile region, a scientist said on Friday.
Glacial melting is creating huge, expanding lakes that threaten to burst and devastate mountain communities living downstream, Mr. Bajracharya said. The accelerated glacial loss raises concerns over future access to water resources, particularly in regions where groundwater is limited and monsoon rains are erratic.
The findings, published earlier this month, also sound alarm bells for Nepal’s push to develop hydropower projects.
A government report in India recently blamed hydropower projects for devastating floods last year that killed thousands in India and Nepal.

Warheads at supersonic speeds, on the ground

A new facility on which missile warheads can be propelled at supersonic speeds has been inaugurated at the Terminal Ballistics Research Laboratory (TBRL), Chandigarh.
The Rail Track Rocket Sled (RTRS) Penta Rail Supersonic Track comprises five precision-aligned rails, each four-km long; specially designed rocket motors; aerodynamic sleds; and advanced instrumentation. It allows the simulation of interception of a missile coming in at a supersonic speed.
It can also be used for simulating the velocities encountered during the re-entry of crew capsules to be used in India’s manned missions to space and the parachutes that will be deployed to bring back the Indian astronauts safely to earth. The Defence Research and Development Organisation (DRDO) has built the facility at the Chandigarh laboratory.

Centre recommends anti-dumping levy on U.S., Chinese solar cells

The Commerce Ministry has recommended levying anti-dumping duty on solar cells imported from the U.S., Malaysia, China and Chinese Taipei, a move that would provide relief to struggling domestic manufacturer s. Concluding the one-and-a-half year long probe into allegations that cheap solar cells are being dumped into India, the Ministry has suggested restrictive duty in the range of $0.11 to 0.81 per watt.

Excellent article explaining how USA's pivot to Asia has not worked out whereas it is Russia who is making most out of the pivot to Asia.
Russian President Vladimir Putin and Chinese President Xi Jinping signed a spectacular energy deal — $400 billion of Siberian natural gas to be exported to China over 30 years. Implications of this:
  • It deflates the post-Ukraine Western threat (mostly empty, but still very loud) to cut European imports of Russian gas. Putin has just defiantly demonstrated that he has other places to go.
  • The Russia-China deal also makes a mockery of U.S. boasts to have isolated Russia because of Ukraine.
Example of USA's failure:
He went to Japan last month also seeking a major trade agreement that would symbolise and cement a pivotal strategic alliance. He came home empty-handed.

Indeed, at this week’s Asian cooperation conference, Xi proposed a brand-new continental security system to include Russia and Iran (lest anyone mistake its anti-imperialist essence) and exclude America. This is an open challenge to the post-Cold War, U.S.-dominated world that Obama inherited and then weakened beyond imagining.
If carried through, it would mark the end of a quarter-century of unipolarity. And herald a return to a form of bipolarity — two global coalitions: one free, one not — though, with communism dead, not as structurally rigid or ideologically dangerous as Cold War bipolarity. Not a fight to the finish, but a struggle nonetheless — for dominion and domination.

Shortage of ‘kasturi’ in Puri temple

The Puri Jagannath Temple is facing a shortage of ‘kasturi’ (musk collected from a stag’s navel) and the Odisha government has urged the Centre to ensure procurement from Nepal.
Government sources confirmed that the Chief Secretary had written to the Foreign Secretary, seeking assistance in procuring ‘kasturi’, which is used during the Navakalebara festival. The last festival was held in 1996. The next will be in 2015.
Other than the Puri Shankaracharya and the Gajapati King of Odisha, only the Nepal king is allowed to ascend the Ratna Vedi (the altar on which Jagannath, Balabhadra and Subhadra are placed).

Gyaan:
The term Nabakalevara is derived from the Sanskrit words Naba or new and Kalevara or body, literally meaning New Body. It is an ancient ritual associated with most of the Jagannath Temples when the Idols of Lord Jagannath, Balabhadra, Subhadra and Sudarshan are replaced by a new set of Idols.

Friday 23 May 2014

Daily News Compilation (HINDU) for 23rd May

Seven steps to an economic rebalancing

  1. needs to rebalance savings and investments which have deflated over the recent past and are inadequate to sustain a high rate of growth. 
  2. share of manufacturing in GDP must be stepped up in accordance with the employment imperative and the need to build an advanced knowledge-intensive, technology-based product profile. 
  3. the economic mindset has to incorporate a much faster pace of planned urbanisation, along with a humane approach, which would foster higher economic productivity given all factors of production.
  4. India’s financial sector requires modernisation and integration with the larger global system, a task which was interrupted by the global financial crisis. 
  5. India’s major resource — its people — must be critically upgraded in order to effectively participate in a knowledge-driven global economy. 
  6. Our global integration in terms of the flow of goods, services, technology and funds must be greatly expanded. 
  7. We must strategise to redress the massive infrastructure gap that we currently face.

Focussing on agriculture
The challenge of inflation requires huge efforts in the farm sector for productivity increase:
  • better food-grain management
  • water management including new irrigation facilities, water user charges, mapping of micro-districts for best usage, and interlinking of rivers. We need to plan water resource management for every village using geospatial technologies.
  • The Supreme Court has mandated the river-linking project, and the administration now has to plan to execute the detailed strategies that would help share water resources across the country.
  • The Prime Minister-designate, Narendra Modi, has already announced his intention to institute a Pradhan Mantri Krishi Seechayee Yojana. This would need to be accompanied by strengthening of supply chains, both for agri inputs such as fertilizers, farm mechanisation and seeds as also for upstream investments in storage and cold chains
  • Corporate sector participation through novel ideas like land leasing, and farmer-producer cooperatives can play a big role in building agricultural productivity.

Taxation and savings
Once inflation is on the downtrend, there would be an incentive to lower interest rates that could kick-start new household consumption and corporate investments. Apart from interest rates, steps need to be taken on the taxation front to revive savings and investments. 
  • The Goods and Services Tax is one overarching reform measure that can immediately meet many economic targets such as lowering inflation, raising economic efficiency and productivity, and incentivising investments. 
  • Stability on tax policies is essential to revive investor sentiment and bring in more capital, particularly from overseas.
  • Investments need to be greatly escalated in all infrastructure sectors, including power, transport and urban development, among others, as the country can absorb $10 trillion worth of new infrastructure over the next three decades. Both public and private investments would be critical to the task.
  • The government would need to look into restarting the infrastructure and manufacturing projects already on the ground by creating a strong institutional mechanism for project oversight. Such an organisation would likely include Central and State governments along with industry. Two, unlocking stranded projects would be the fastest way to create demand for upstream and downstream sectors. Public-private partnership contracts can be renegotiated, rebid or restructured, while fresh norms and models should be worked out for future projects. Three, there is need to identify top projects with multiplier impact and roll them out on the fast track.
  • Further, current financial conditions in terms of credit cost, tenor, and financial instruments mitigate against long-term project viability. Strengthening the corporate bond market to make it more efficient and vibrant through new financial instruments, calibrated tax measures, rationalisation of stamp duties and so on are essential for infrastructure build-up.

Energy management
One of the key constraints for sectors such as manufacturing and infrastructure is the lack of adequate power capacity. India is highly import-dependent in terms of fuel supplies (crude oil, gas, and coal) and we should be able to convert our own natural resources to bolster our energy security. 

A holistic energy policy to bring together thermal, hydro and renewable sources as also to resolve challenges in electricity pricing, transmission and regulation may be speedily instituted. 
The Electricity Act, 2003 sets a sound foundation and can be updated to encourage minimisation of transmission and distribution (T&D) losses and strengthen the finances of distribution companies, including by reducing subsidies. 
The mining sector is a key corollary to the energy effort as a lack of fuel supply linkages has stymied large power capacities from going on-stream. All angles including exploration, bidding and mining practices have to be explored. The private sector should be incentivised to play a stronger role in these areas.
Administrative procedures and “ease of doing business” parameters must be high on the agenda of the incoming government. Business has highlighted the role of lengthy and complicated procedures in environment clearances, land acquisition and other processes in delaying projects and raising transaction costs. These would have to be streamlined and fast-tracked, with as much as possible passing through transparent and time-bound technology platforms to slot into the credo of “minimum government, maximum governance.”

Employment generation
The critical issue of employment generation can only be tackled through committed efforts towards education and skill development on the one hand, and employment regulatory architecture on the other. 
  • Leveraging Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) funds for skill development, 
  • deploying private sector expertise under the Apprenticeship Act, 
  • expansion of the number of Industrial Training Institutes (ITI) and more vocational trades

Employment is governed by as many as 44 Central laws and over 150 State laws, and retrenchment and exit are greatly discouraged. By re-examining the labour law framework, we can easily consolidate laws as well as shift some social security obligations from the government to the private sector. For example, mass manufacturing enterprises may enjoy a more flexible labour-force size depending on market conditions, but may also be tasked with ensuring better worker conditions and higher wages. Fixed term employment can be reintroduced.

Building export competitiveness would enable India to have a larger presence in global value chains. A comprehensive suite of steps to identify the right products and strategies in conjunction with India’s product profile and comparative advantages are central to this endeavour. Effective marketing in key global destinations and making India a favoured investment destination can be conducted in tandem.

Neighbourhood initiative

Prime Minister-elect Narendra Modi’s surprise invitation to the leaders of India’s neighbours to attend his swearing-in ceremony on May 26 has the makings of a shock and awe tactic with three messages: 

the first to Pakistan

While dressed up as an outreach to all SAARC leaders, the invitation was clearly meant primarily for Prime Minister Nawaz Sharif of Pakistan. To the extent that during his election campaign Mr. Modi’s references to Pakistan were all linked to cross-border terrorism, the invitation is rightly seen as an olive branch to that country. Less apparently, the invitation to witness Mr. Modi’s anointment is an assertion that Pakistan now has to deal with a powerful new leader in New Delhi with a decisive mandate, and that the onus is now on Pakistan to show that it wants friendly ties. 

the second to the region
The second clear message is to South Asia and the larger region, including China, that under the new leadership India intends to be proactively engaged with the region, and in contrast to the United Progressive Alliance government, will not let the initiative slip from New Delhi’s hands, whether in the Maldives, Sri Lanka, Bangladesh or Nepal. 

the third for domestic consumption
The third message is meant for regional parties in Tamil Nadu and in West Bengal that, allies or not, they can no longer dictate terms on foreign policy. Sri Lankan President Mahinda Rajapaksa was the first to understand this; such a New Delhi-Tamil Nadu equation is exactly what he wants, and he readily accepted the invitation. 

Army chief stages coup in Thailand

  • focus on building agriculture as an industry and will free up exports of dairy products and foodgrains, etc., with full back-end support for cold storage as there is no other real way creating jobs in rural India
  •  to “globalise” India’s agriculture. Given that the prices of rice and milk and other farm sector produce in the global market is several times that in India, Mr. Modi would like to give a big push to agricultural exports, for which output of the sector will have to expand fast

Thursday 22 May 2014

Daily News Compilation (HINDU) for 22nd May

No reason to cheer

What is maternal mortality rate (MMR)?

First what is maternal death : Maternal death is the death of a woman while pregnant or within 42 days of termination of pregnancy, irrespective of the duration and site of the pregnancy, from any cause related to or aggravated by the pregnancy or its management but not from accidental or incidental causes.

MMR is defined as number of maternal deaths per 100000 live births.

MMR of India in 1990: 569
MMR of India in 2013: 190

MDG GOAL 5: IMPROVE MATERNAL HEALTH
Target 5A:  Reduce by three quarters the maternal mortality ratio 
Target 5B: Achieve universal access to reproductive health



Worrying facts for India:
  • In 2013, India had 17 per cent (50,000) of the global maternal deaths.
  • India is yet to achieve the expected average annual maternal mortality rate decline of 5.5 per cent or more during the period 1990-2013 to reach the Millennium Development Goal 5 target.
  • Country falls under the “making progress” category and would fail to meet the MMR target of 109 before 2015

The only silver lining is that India has been making steady progress in reducing the MMR since 1990. But for a country where an estimated 26 million deliveries take place annually, the absolute number of maternal deaths continues to be high.
Besides the medical reasons like severe bleeding and infections after childbirth and high blood pressure levels during pregnancy, one of the factors that is playing a big role in maternal mortality is the lack of skilled care “before, during and after childbirth.

One way of tackling this is by having more institutional deliveries. 
India launched a programme in 2005 to facilitate such deliveries on a larger scale than was prevalent, but the results were not encouraging: there was no corresponding decline in the number of deaths. The reason for that is not difficult to find. In 2008, more than 50 per cent of women in Uttar Pradesh and Bihar, and 41 per cent in Rajasthan, continued to deliver at home, according to a United Nations Population Fund-India report. Therefore, a greater focus on increasing the number of well-trained birth attendants should go hand in hand with promoting institutional deliveries. 

5.5 million babies — nearly three million neonates and about 2.6 million stillbirths — die every year.

With 7,79,000 deaths, India accounts for the highest number of newborn mortality in the world.

Great strides have been taken in halving the number of deaths in children aged under-five, the progress in reducing the number of newborn deaths has been “slower.” In the case of stillbirths, the progress has been even worse — it is “substantially slower” than even that of reducing newborn mortality. Stillbirths are not counted in the Millennium Development Goals.

Why invisible?
In most countries stillbirths do not get birth or death certificates, which contributes to their invisibility; hence, most of the world’s newborn deaths and almost all stillbirths enter and leave the world without a piece of paper to record their existence

The lack of registration, The Lancet notes, is a key reason for slower progress in recent decades for prevention of newborn deaths compared with maternal and child mortality reduction.
But about three million deaths — 54 per cent of maternal deaths, 33 per cent of stillbirths, and 71 per cent of newborn deaths — can be easily prevented if “achievable interventions are scaled up to nearly universal coverage” at all stages — before conception, as well as before, during and after pregnancy.

News: Decision to invite regional leaders for Narendra Modi’s swearing-in
One view point :  “The rules of the game should be settled before any major diplomatic initiatives,” said Ajai Sahni at the Institute for Conflict Management in New Delhi. “This kind of gesture seems to be a little impulsive.”

Another view point:  Meeting is to allay regional fears that his rise to power would herald a new hawkishness in Indian foreign policy. The BJP leader had ruffled feathers in Bangladesh, threatening to expel migrants from the northeast, while Sri Lanka was concerned over the influence ethnic nationalists in Tamil Nadu might have over Mr. Modi’s foreign policy.

“Part of the idea,” a senior national security official present at the meeting said, “is to test whether Pakistan’s Prime Minister will be able to buck military pressures by visiting New Delhi. It will be a sign whether he is his own boss or not.”

The Reserve Bank of India (RBI), on Wednesday, allowed star trading houses (STH) and premier trading houses (PTH) to import gold under the 20:80 scheme.
According to the guidelines of the scheme, importers can buy gold provided a fifth of the imported quantum is exported as finished products like jewellery.
The RBI has also permitted banks to provide gold metal loans (GML) to domestic jewellery manufacturers out of the eligible domestic import quota to the extent of GML outstanding on their books as on March 31, 2013.
The RBI had banned import of gold through star trading houses in August 2013 but this led to a rise in the parallel market, resulting in high premiums.

Gyaan
EXPORT AND TRADING HOUSES STATUS
If you have export turn over of Rs. 20 crores or above  you may apply for Export House ( EH ), Star Export House ( SEH ), Trading House ( TH ), Star Trading House ( STH ) and Premier Trading House (PTH) based on the Export Performance FOB / FOR Value of the unit and get additional Import – Export Privileges and Incentives as notified by The Government of India from time to time.

Status Category
Status recognition depends upon export performance. An applicant shall be categorized as status holder upon achieving export performance indicated in table below. The export performance will be counted on the basis of FOB value of export proceeds realized during current plus previous three years (taken together).For Export House (EH) Status, export performance is necessary in at least two out of four years.

Status Category
Export Performance FOB / FOR Value (Rupees in Crores)
Export House
20
Star Export House
100
Trading House
500
Star Trading House
2500
Premier Trading House
7500

Some Privileges of Export and Trading Houses Status Holders

(a)  Authorization and Customs Clearances for both imports and exports on self-declaration basis;

(b)  Fixation of Input-Output norms on priority within 60 days;


(c) Exemption from compulsory negotiation of documents through banks. Remittance / Receipts, however, would be received through banking channels;

FOB stands for Free On Board price
A trade term requiring the seller to deliver goods on board a vessel designated by the buyer. The seller fulfills its obligations to deliver when the goods have passed over the ship's rail.


When used in trade terms, the word "free" means the seller has an obligation to deliver goods to a named place for transfer to a carrier.

Reserve Bank allows banks to provide long-term credit to exporters

The Reserve Bank of India (RBI) has allowed banks to offer long-term advances to exporters to enable them enter into long-term supply contacts with importers.
The government will be spending about Rs.3,000 crore in the next three years to double the number of drug regulators, a senior government official said on Wednesday.
Joint Secretary in the Commerce Ministry Sudhanshu Pandey told the media that the government was following a “zero tolerance” policy for ensuring that India not only maintained but further strengthened its ranking in the world pharmaceuticals market.
He said these measures on quality assurance were even more important when a big opportunity would be unfolding in the off-patent generics in the next few years.

New House cannot have Opposition leader

The post of Leader of the Opposition can go only to the leader of a political party and not to the leader of an alliance, whether formed before the election or after. Hence, neither the Congress, as the head of the pre-poll United Progressive Alliance (UPA), nor a post-poll grouping of regional parties in the new Lok Sabha can stake claim to the post, according to Subhash C. Kashyap, former Secretary-General of the Lok Sabha.
A party needs 10 per cent of the strength of the House (55 in the Lok Sabha) to stake claim, and the largest Opposition, the Congress, with 44 seats is way short of that number. Although the UPA has 60 members, this is of no relevance in appointing Leader of the Opposition.
** the Leader of the Opposition enjoys the rank of a Cabinet Minister with all attendant perks and benefits.
**This is not the first time that the Lok Sabha would be without a Leader of the Opposition. Until 1969, no party qualified for the post. Between 1980 and 1989 too, no party had the requisite numbers.
**As for the post of Deputy Speaker, it is given to the Opposition by convention.

A Finland model for Ukraine?

First we need to understand what is Finlandization :
Finlandization is a negative term that came out of 1960s and 1970s West German politics (Finnlandisierung in German). It refers to a country's decision to remain neutral, that is to not challenge powerful or potentially threatening countries nearby. The term comes from a reference to Finland's policy towards the Soviet Union.
Finland had allied itself with Nazi Germany in 1940 for Germany's protection from the USSR. When it became clear that Germany was losing World War II, Finland realized that no other neighboring countries were strong enough to offer protection and switched to a policy of "I'll leave you alone if you leave me alone" regarding the Soviet Union. Of course, other Western countries were upset at what they perceived as Finland becoming too tolerant of Communism. West Germany debated this issue in particular, as they worried that "Finlandization" would spread throughout Europe as the USA scaled back their presence in the region.
Now the Article:

After months of war fever over Ukraine, perhaps the biggest surprise is that citizens there will be voting to choose a new government in elections that observers predict will be free and fair in most areas.
This electoral pathway for Ukraine seemed unlikely a few weeks ago, given Russian President Vladimir Putin’s annexation of Crimea and his covert campaign to destabilise the Russian-speaking areas of eastern Ukraine. There were dire warnings of a new Cold War, and even of a ground war in Ukraine. The country seemed at risk of being torn apart.

Putin appears, at this writing, to have decided that Russia’s interests are better served by waiting — for the nonaligned government he expects will emerge from Sunday’s elections — than from an invasion or some radical destabilisation. The Russian leader may be ready to accept a neutral country, between East and West, where Russia’s historical interests are recognised. During the Cold War, such an outcome was known as “Finlandization.”

The case for “Finlandization” emerges in a monograph prepared recently by the State Department’s Office of the Historian. It argues that “Finnish foreign policy during the Cold War successfully preserved Finland’s territorial and economic sovereignty, through adherence to a careful policy of neutrality in foreign affairs.” Ukraine’s new government may pursue a similar nonalignment, judging from the leading candidate, billionaire oligarch Petro Poroshenko, who has pro-Western ties but also served in the Moscow-leaning government of deposed president Viktor Yanukovych.
The State Department study also noted that nonalignment allowed Finland “to serve as a bridge between the Soviet bloc and the West.” Helsinki became a meeting ground for arms-control and human-rights talks that eventually transformed Eastern Europe. A similar bridging role for Ukraine would be welcome, as it would draw Russia west, away from an atavistic strategy of creating a Eurasian trade bloc to re-establish Soviet-style economic hegemony.

Wednesday 21 May 2014

Daily News Compilation (HINDU) for 21st May

The big debate

Author has discussed the question : Is democracy in long-run decline?
  • Without a rival system to test them, democratic governments have decayed across the globe. 
  • According to measures by Freedom House, freedom has been in retreat around the world for the past eight years. New democracies like South Africa are decaying; the number of nations that the Bertelsmann Foundation now classifies as “defective democracies” (rigged elections and so on) has risen to 52. As John Micklethwait and Adrian Wooldridge write in their book, “ The Fourth Revolution ,” “So far the 21st century has been a rotten one for the Western model.”
  • The events of the past several years have exposed democracy’s structural flaws. Democracies tend to have a tough time with long-range planning. Voters tend to want more government services than they are willing to pay for. The system of checks and balances can slide into paralysis, as more interest groups acquire veto power over legislation.
The Guardian State
A new charismatic rival is gaining strength: the Guardian State. In their book, Micklethwait and Wooldridge do an outstanding job of describing Asia’s modernising autocracies. In some ways, these governments look more progressive than the Western model; in some ways, more conservative.

These Guardian States have some disadvantages compared with Western democracies. 
  1. They are more corrupt. 
  2. Because the systems are top-down, local government tends to be worse. 
But they have advantages. 
  1. They are better at long-range thinking and can move fast because they limit democratic feedback and don’t face NIMBY-style impediments.
  2. Most important, they are more innovative than Western democracies right now. 
So how should Western democracies respond to this competition? What’s needed is not so much a vision of the proper role for the state as a strategy to make democracy dynamic again.
The answer is to use Lee Kuan Yew means to achieve Jeffersonian ends — to become less democratic at the national level in order to become more democratic at the local level. At the national level, U.S. politics has become neurotically democratic. Politicians are campaigning all the time and can scarcely think beyond the news cycle. Legislators are terrified of offending this or that industry lobby, activist group or donor faction. Unrepresentative groups have disproportionate power in primary elections.
The quickest way around all this is to use elite Simpson-Bowles-type commissions to push populist reforms.
Gather small groups of the great and the good together to hammer out bipartisan reforms — on immigration, entitlement reform, a social mobility agenda, etc. — and then rally establishment opinion to browbeat the plans through. But the substance would be anything but elitist. Democracy’s great advantage over autocratic states is that information and change flow more freely from the bottom up. Those with local knowledge have more responsibility.
If the Guardian State’s big advantage is speed at the top, democracy’s is speed at the bottom. So, obviously, the elite commissions should push proposals that magnify that advantage: which push control over poverty programs to local charities; which push educational diversity through charter schools; which introduce more market mechanisms into public provision of, say, health care, to spread power to consumers.

Renewable energy provides 6.5 million jobs worldwide

India is one of the largest employers in the renewable energy industry, which has become a leading employer sector globally with approximately 6.5 million people directly or indirectly earning their livelihood from it, according to a study by the International Renewable Energy Agency (IRENA).
The largest employers by country are China, Brazil, the United States, India, Germany, Spain and Bangladesh, while the largest employers by sector are solar photovoltaic, bio fuels, wind, modern biomass and biogas.

After the deans of 12 top U.S. public health schools wrote to the Obama administration earlier this year protesting the Central Intelligence Agency (CIA)’s use of Pakistani surgeon Shakil Afridi to conduct a fake immunisation drive in the hunt for Osama bin Laden, the White House this week promised to never use a vaccine campaign again in counterterrorism operations.
Apparently 83 new polio cases were reported in Pakistan last year, which exceeds the number of cases discovered in Afghanistan and Nigeria, prompting an independent monitoring board set up by the World Health Organisation (WHO) to describe the country as “a powder keg that could ignite widespread polio transmission.” India however won global plaudits for successfully eradicating polio in 2013.

Antarctica is shedding 160 billion tonnes a year of ice into the ocean, twice the amount of a few years ago, according to new satellite observations. The ice loss is adding to the rising sea levels driven by climate change and even east Antarctica is now losing ice.
The new revelations follow the announcement last week that the collapse of the western Antarctica ice sheet has already begun and is unstoppable, although it may take many centuries to complete.
Global warming is pushing up sea level by melting the world’s major ice caps and by warming and expanding oceans. The loss of the entire western Antarctica ice sheet would eventually cause up to 4 metres of sea-level rise, devastating low-lying and coastal areas around the world.

The Reserve Bank of India is examining whether it should relieve banks of CRR (Cash Reserve Ratio) and SLR (Statutory Liquidity Ratio) obligations with regard to infrastructure funding.
The CRR and SLR obligations disadvantage banks vis-a-vis other financial institutions in the raising and lending of long-term money, which becomes especially important for infrastructure, Dr. Rajan said. Since construction lasts for 5-7 years, banks should be able to raise long-tenor money for these purposes, said Dr. Rajan. However, at present, the raising of such money by banks is burdened with CRR and SLR requirements. Thereafter, any lending that banks do attracts further priority-sector obligations. “To the extent that banks raise long-term bonds and use them for infrastructure financing, could we relieve them of such obligations?” said Dr. Rajan.