I.M.F's Inimical Interest or Beneficial Bail-out?

The Wall Street Journal Tuesday, August 31, 2010

The IMF (International Monetary Fund) appears to anticipate a crisis in some developing countries in the near future. Hence its anxious announcement on Monday that it is preparing to extend a helping hand in the form of a new ‘precautionary credit line’. This line of credit doesn’t expect a country to use the money and rack up interest charges, unless it needed the financing at one go. This program envisages offering of loans as much as five times a country’s quota with a condition for some policy changes on the part of borrowers. It is little enigmatic too to note that IMF loans at times carry reportedly a ‘stigma’ in the market place.

With a view to circumventing the stigma of borrowing, the IMF is now contemplating a different loan, the “global stabilization mechanism” which would be available to groups of countries at a time.

If a country wants to avail a ‘flexible credit line’ without going through the necessity of effecting changes in policies, it has to earn a good reputation in the eyes of IMF over a period of time by following a set of policies wholeheartedly endorsed by it.

IMF credit or the World bank funding, as sought after by many central and provincial governments in different countries, adds its own measure of success or failure in the context of a country’s economic and social development on the basis of their own ability to use it economically, whether supervised properly or not by the donor, in a specific period of time with the least cost of implementation. If timely and properly utilized, it amounts to be a beneficial bail-out or else it proves to be an inimical intervention.

Newspaper Reading

An Art or Science? –
A Daily Paper or a Standard Book?

Gone are the days when the daily newspaper – vernacular or an English one – used to contain only 10 to 12 pages. Now they are as informative and voluminous with facts, figures and photos including ads and notices that they look like books for reading.

Look for example the size of the newspaper – The New York Times of July 11, 2010 edition having the following Chapters:

General News: 24 Pages
Metropolitan: 10 “
Sports Sunday: 14 “
Week in Review: 10 “
Sunday Styles: 10 “
Sunday Business: 30 “
Arts & Leisure: 24 “
ZK : 4 “
Book review: 28 “
Travel: 14 “
Real Estate: 18 “
Automobiles: 08 “
Ad – handouts: 76 “
NYT Magazine: 60 “

Thus it had 330 pages in all – almost the size of a book to read. If one misses to read the paper one or two days - well, that is it. Persons working 12 to 14 or more hours per day would not be able to read the papers daily. One needs to develop the art of reading and updating one’s knowledge lest he becomes out of date in his own field or in general knowledge. Many a time knowledge or book is bought and kept for days and years together with a view to encashing its usefulness at a future date by the majority of literates. With the digital and internet revolution in place these days the reach of a common man to the vast ocean-level knowledge and news is immense. How much time one can actually devote for general news or the researched article on a subject depends on the availability of time or immediate relevance of the topic at his work place. Hence the need for developing it as an art as well as science so as to enhance its utility and match the value of money spent on it.

Aberration Along Affluence

“Asian students have generally performed better than white students on state math tests in the city (New York), and about the same on English tests. Those gaps have remained fairly consistent over the years. “(New York Times, N.Y Monday, August16, 2010). The city Mayor Michael R. Bloomberg and Chancellor Joel I. Klein have been proved wrong in their claims to the contrary all these years since 2002 when the present Mayor came to office.

New York still has to solve the problem of uplifting the standards of Black and Hispanic students at the school level This is the situation when a laudable scheme called “No Child Left Behind” which mandated annual testing for all students in grades three through eight had been launched in right earnest and it had even won the praise of President George W. Bush as well as a prestigious education prize from the Broad Foundation in 2007.

It seems the problem of under-development remains more or less the same in any part of the globe, a country or a society as the case may be – whether developed fully or partially. What is the difference between the given scenario in Central India, Sub-Saharan Africa and Pan America and a similar one in the Manhattan County of New York City, the most developed piece of land on earth? Black and Hispanic populations live there side by side in considerable numbers with the whites for more than two-three centuries. The New York City Administration and the Federal Government of USA will have to work hard for number of years to achieve the set goal of parity in educational standards between different segments of populations like in the case of underdeveloped countries (for example - the tribal belts of Central India) in the third world.

Want to remain in the Boxing Ring?

Warm up yourself my friends, the Chinese Dragon is flying past after defeating different giants one by one in controlling population, registering double digit growth rate in the last three decades consistently, achieving surplus in international trade with the world’s biggest economy i.e. USA for several years, strengthening its military presence in strategic points, obtaining the first position in Olympic games, launching the biggest show in the form of Trade Fair in Shanghai, rubbing shoulders with other permanent members in the Security Council of UNO etc etc. Well we don’t know where we are although our leaders project ourselves as the contender for the position of a Super Power in 21st century.

Five years ago China’s gross domestic product was about $2.3 trillion about half of Japan’s. China’s per capita income is $3600 and that of US is about $46000. In the first quarter of the current year China has overtaken Japan, as feared and expected in many quarters, as Number Two Economy in the world. Economic pundits apprehend that China will pass the US as the world’s biggest economy as early as 2030. You know that America’s GDP was about $14 trillion in 2009. It is obvious we the Indians are nowhere in the picture for the present.

Another factor of concern is that the latest global Education First - English Proficiency Index shows India standing in 30th place and a spot above it - China. This is the first time it has topped India in these rankings. In 2009, a report by the British Council of India revealed that China was pulling ahead of India in boosting Engish usage.

Innovation in Marketing

Marketing in Western hemisphere is known for its quality and innovative methods.

IKEA is a wholesale store run by a Swedish firm with its brand name selling not only household goods but also with lot of innovative ideas and new varieties and designs for mundane and utility products. The household interiors (like drawing room, kitchen, study room, toilets, dining rooms) in actual size with products in varying designs and shapes and in different mediums like plastics, plywood, leather, cotton, polymer, steel and laminated sheets are put on display for the people to see, touch and enjoy them before making purchases and themselves transporting the same to their vehicles. What an idea and execution in the interest of consumers?

America Becoming Another Banana Republic?

Shah Gilani, Contributing Editor, Money Morning is rightly worried that the great American tradition of individualism and capitalism is being systematically undermined by a cadre of financial strongmen and the ruling class of wealthy oligarchs.It is an irony that the same capitalist system that molded America into the richest nation in history has been transformed into a mostly private moneymaking enterprise producing nothing but paper profits, as he bemoans.

America's transformation into a banana republic is indeed intriguing and perplexing looking to the vast implications anticipated on the global economic scene. That probably explains the dilemma faced by the majority of Democrats in the Capitol, Washington D.C under the leadership of President Barack Obama as to how to hold the Bull's horn and overpower it without hurting oneself and others in the arena. The challenge before the policy makers now is how to avoid or atleast control those forces which are bent upon increasing enormous wealth in a few hands and forcing the majority to live in poverty and penury by utilising the very features of capitalism and laissez-faire.

The practice of socialism in countries like USSR has taken a beating very badly and communistist countries like China have started adopting features of capitalism in production, ownership and stock market in a limited and controlled fashion. The lesson is that any kind of 'ism in the extreme form is bound to burn fingers and fail to delver results for the good of the majority in a society.

A good mix of both ie Controlled Capitalism alone can ensure the light at the end of the tunnel, I suppose.

Long live Mr Barack Obama

God and Nature help those who are basically courteous and couragious in work and life. The Westeners and Americans esp. deserve to be complemented in this regard. They do respond to letters and e-mails received from any individual on this globe.

When I sent a birth day greeting mail to the US president Mr Barack Obama on his 49th birth day on 4th August, I received a 'thank you' mail to day the 6th August, 2010. That shows his working style and the courtesy of the First Lady in White House.

I am literally pained in my heart to reveal the utter carelessness exibited by my Indian brethren - be it the personages occupying highest positions in P.M.O, Rashtrapathi Bhavan, Planning Commission, Chief Ministers with one exception, Secretary to Government of India, Chief Secretary or Secretary in the state governments, the editors of leading daily newspapers and magazines ...........My countrymen the great Indians - high or low in position - would respond only if they want to or likely to gain in any manner in the near future. Otherwise it is impossible to get response even to serious matters in public life (issues) or even greetings in private capacity.

God help my India!

Forests Under Fire

Naxalites Vs States

Vast tropical forests in India were effectively protected by the wild life and the Princely States in the past before the advent of fire-arms. But the invented firearms helped the human poaching in eliminating the florishing fauna and increasing the list of endangered and extinct species in wild life.

Simultaneously man's greediness found no bounds while decimating the deep forests over a period of time but thanks to the presence of naxalites in place of wild life that there is some check on this trend unwittingly of course.

Two decades ago when naxalites activities were at the peak in Andhra Pradesh State we literally feared their advance and intrusion into the jungles of Orissa State, Chhattisgarh area of erstwhile Madhya Pradesh State and Jharkhand area of erstwhile Bihar State which had actually taken place to the dismay of all concerned. The solution seems to be elusive of all the preparations and attempts made by the Central Government and the respective State governments so far on the ground. Naxalites are almost running a parallel government in those places and the general public are in their grip willingly or unwillingly. Developmental activities of civilian governments in those areas have taken a beating in the hands of naxalites. God knows when normalcy will return to such territories so that those simple and peace-loving citizens can start leading a normal life like their brethren in other parts of the country.

The central government refuses to send the military forces to contain this menace on the basis of a settled convention practised so far of not sending the troops for an internal law and order problem. But the issue has assumed such a big dimension and proportion that it is only a quesion of a few days or months before the embattled areas are handed over enabling a show-down between the naxalites and the armed forces for a final solution.

Let us await the D-day.

Is Prop 8 constitutional?

A waging war is on the anvil right now in USA over the right of two indviduals of same sex to enter into a legal wedlock. California’s Proposition 8, which bans same-sex marriage is under challenge before the courts of law. A trial challenging the same began January 11 and a U.S. district court concurs. The case is now likely to reach the Supreme Court for final adjudication. The outcome of the case is expected to set precedent for years and shape the American society.

I do sincerely think banning same-sex marriage is constitutional inasmuch as the biological and demographical needs of the society demand the union of two individuals of opposite sex. Well the question of two individuals of same sex wanting to live together and raise a family can be settled in their favour without any legal obstruction or humiliation. A register of such marriages of same sex can be kept separately for the purpose of census and other uses. The American settlement in this regard will lead to similar requirements in other countries very soon.