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terpart government organizations and other stakeholders, that there is a need for further simplification and consolidation of the FDI policy framework, so as to make it more comprehensible to all
investors and stakeholders. The Prime Minister,
in his remarks at the World Economic Forum in
December, 2008, had also announced that, Our
policy will be guided by the desire to make India
even more attractive for Foreign Direct Investment. We are particularly keen to rationalize and
simplify procedures so as to create an investor
friendly environment. The present exercise was a
step in the above direction.
FDI Inflows
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It is relevant to note that the Organisation for Economic Cooperation and Development (OECD), in
its latest report on investment, released in March,
2010, has noted a significant stagnation in the global investment activity. It has noted that: The
average monthly Merger &Acquisition (M&A) activity in the past 12 months was just under US $
50 billion. The last time monthly M&A activity
fell below US$50 billion was in April 2006. Yearon-year, global M&A activity is now at its lowest
level since the beginning of the global economic
crisis, at around 35% of the levels reached two years
ago (March, 2007 through February, 2008).
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G20 Summit
Leaders Agree to Cut Deficits by 2013
The fourth G20 summit in less than two years has ended at
Toronto on 26-27 June, 2010. The summit ended with global leaders evolving a consensus of sorts on several issues of
economic importance. India, which was represented in
strength at the summit, says it is happy with the outcome.
The leaders of the world's most powerful economies pledged
to slash back spiraling debts on Sunday as they sought to
rebalance a global economy knocked off its axis by a financial crisis.
The heads of the G20, which groups established world powers and the most dynamic emerging players,
vowed to nurture the still shaky recovery with coordinated
measures to spur growth and ensure financial stability.
But observers quickly noted the agreements were not binding and the summit statement was filled with caveats and
exemptions, pushing many of the tougher decisions on to
the next G20 summit in Seoul in November.
hamper growth."
"Reflecting this balance, advanced economies have committed to fiscal plans that will at least halve deficits
by 2013 and stabilize or reduce government debt-to-GDP ratios by 2016," it promised.
Nevertheless, the group exempted Japan and its huge public deficit from the pledge and noted that measures should be "tailored to national circumstances."
The statement called for "greater exchange rate flexibility in some emerging markets" but shied away from
specifically fingering China, which is under pressure to allow the yuan to strengthen to ease trade imbalances.
Amid US fears that global growth may once again become overdependent on American consumers, the
G20 called for "efforts to rebalance global demand to help ensure global growth continues on a sustainable
path."
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Mandate
The G-20 is the premier forum for our international economic development that promotes open
and constructive discussion between industrial and
emerging-market countries on key issues related
to global economic stability. By contributing to the
strengthening of the international financial architecture and providing opportunities for dialogue
on national policies, international co-operation, and
international financial institutions, the G-20 helps
to support growth and development across the
globe.
Origins
The G-20 was created as a response both to the
financial crises of the late 1990s and to a growing
recognition that key emerging-market countries
were not adequately included in the core of global
economic discussion and governance. Prior to the
G-20 creation, similar groupings to promote dialogue and analysis had been established at the initiative of the G-7.
The G-22 met at Washington D.C. in April and
October 1998. Its aim was to involve non-G-7
countries in the resolution of global aspects of the
financial crisis then affecting emerging-market
countries.
Two subsequent meetings comprising a larger
group of participants (G-33) held in March and
April 1999 discussed reforms of the global economy
and the international financial system.
The proposals made by the G-22 and the G-33 to
reduce the world economy's susceptibility to crises showed the potential benefits of a regular international consultative forum embracing the
emerging-market countries. Such a regular dialogue with a constant set of partners was institutionalized by the creation of the G-20 in 1999.
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Membership
Achievements
Argentina
Japan
Australia
Mexico
Brazil
Russia
Canada
Saudi Arabia
China
South Africa
France
Republic of Korea
Germany
Turkey
India
United Kingdom
Indonesia
Italy
The European Union, who is represented by the
rotating Council presidency and the European Central Bank, is the 20th member of the G-20. To ensure global economic fora and institutions work
together, the Managing Director of the International Monetary Fund (IMF) and the President of
the World Bank, plus the chairs of the International Monetary and Financial Committee and
Development Committee of the IMF and World
Bank, also participate in G-20 meetings on an exofficio basis.
The G-20 thus brings together important industrial and emerging-market countries from all regions of the world. Together, member countries
represent around 90 per cent of global gross national product, 80 per cent of world trade (including EU intra-trade) as well as two-thirds of the
world's population. The G-20's economic weight
and broad membership gives it a high degree of
legitimacy and influence over the management of
the global economy and financial system.
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Chair
Unlike international institutions such as the Organization for Economic Co-operation and Development (OECD), IMF or World Bank, the G-20
(like the G-7) has no permanent staff of its own.
The G-20 chair rotates between members, and is
selected from a different regional grouping of countries each year. In 2010 the G-20 chair is the Republic of Korea, and in 2011 it will be France. The
chair is part of a revolving three-member management Troika of past, present and future chairs.
The incumbent chair establishes a temporary secretariat for the duration of its term, which coordinates the group's work and organizes its meetings.
The role of the Troika is to ensure continuity in
the G-20's work and management across host years.
External Communication
The country currently chairing the G-20 posts details of the group's meetings and work program on
a dedicated website. Although participation in the
meetings is reserved for members, the public is
informed about what was discussed and agreed
immediately after the meeting of ministers and
governors has ended. After each meeting of ministers and governors, the G-20 publishes a
communiqu which records the agreements
reached and measures outlined. Material on the
forward work program is also made public.
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Measures Taken
Impact so far
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Global
Competitiveness
Report
I
Hot Topics
Hanouz, senior economist and director of the WEF, who is also the
ture.
Though India has performed
well in complex nancial sector
areas, a;aining the 17th rank
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Hot Topics
Global Competitiveness
Report
The Global Compe::veness Report is a yearly report published
Vol. - 18
Hot Topics
Description
Vol. - 18
States, which ranked rst for several years, fell to fourth place due
to the consequences of the nancial crisis of 20072010 and its
macroeconomic stability. China
con:nue its rela:ve rise in the
rankings reaching 27th.
The report "assesses the ability of countries to provide high
levels of prosperity to their ci:zens. This in turn depends on
Hot Topics
2010-2011 rankings
Featured Article
Global
Hunger
Index
2010
Hunger haunts India
India is among 29 countries with
the highest levels of hunger,
stunted children and poorly fed
women, according to the Interna6onal Food Policy Research Ins6tute (IFPRI)s Global Hunger
19
Vol.. - 18
By - R.K. Pandey
Featured Article
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. Vol. - 19
Featured Article
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.
.
Featured Article
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. Vol. - 19
Vol.. - 19
Featured Article
contribute substantially to
realizing that objective.
Integrating green economy
strategies and policies into
poverty eradication, food security
and energy security is an
imperative for sustainable
development.Food security and
access to affordable clean energy
are both crucial to eradicating
poverty and promoting social
development.The issue of energy
security and universal energy
access is intricately linked with
economic development and
growth, and rising energy needs to
meet it.
Energy poverty coexists with
inefficient energy use in much of
the world, which given
continued heavy dependence on
fossil fuels has been a major
contributor to greenhouse gas
emissions. Understanding the
flexibility or lack of flexibility of
each country to change this
energy mix and devising
innovative methods to secure
energy security are the need of the
hour without compromising on the
need for high economic growth to
meet the aspirations of the people,
especially in developing countries.
Energy security is a multi-faceted
concept. In the current context,
the primary focus is on poor
peoples securing adequate energy
supplies to raise their living
standards, including through
improved income generation,
health and education. Renewable
energy should be considered as an
integral part of the solution to the
energy needs of the poor, but that
will only be feasible if it is
affordable and technologically
accessible. As affordability is a
function in part of large-scale
deployment and learning, the
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Hindi/English/Essay
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Topic wise Papers- 20 + years
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INDIA IN SPACE :
A BAG FULL OF SUCCESS
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OF
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OF
ISRO SO
FAR IN
BRIEF
2011
2010
2009
2008
PSLV-C11
successfully
launches
CHANDRAYAAN-1 from Sriharikota
(October 22, 2008).
PSLV-C9 successfully launches CARTOSAT2A, IMS-1 and 8 foreign nano satellites from
Sriharikota (April 28,2008).
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2007
2003
ISROs Polar Satellite Launch Vehicle, PSLVC8, successfully launched Italian astronomical
satellite, AGILE from Sriharikota (April 23,
2007).
ISROs Polar Satellite Launch Vehicle, PSLVC7 successfully launches four satellites
Indias CARTOSAT-2 and Space Capsule
Recovery Experiment (SRE-1) and Indonesias
LAPAN-TUBSAT
and
Argentinas
PEHUENSAT-1 (January 10, 2007).
2002
2001
2006
2005
2004
The first operational flight of GSLV (GSLVF01) successfully launched EDUSAT from
SDSC SHAR, Sriharikota (September 20,
2004)
1999
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1993
First developmental launch of PSLV with IRS1E on board (September 20, 1993). Satellite
could not be placed in orbit
1998
1997
1991
1996
1995
1994
1987
1984
1984).
1983
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Second developmental launch of SLV-3. RSD2 placed in orbit (April 17, 1983).
1982
19721976
1981
1968
1980
1979
(February 2, 1968).
1967
1963
1977
1962
19751976
1975
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11
12
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India-Japan
Starting Active Partnership
billion to $15 billion will help India
better manage the rupee's slump
against the dollar. This should also
boost financial cooperation and economic and trade ties, which are currently far below potential. The Indian side wants more Japanese investment. For its part, Japan, which
has just lifted a longstanding ban on
the export of weapons, will be looking to sell defence hardware to New
Delhi.
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The two Prime Ministers welcomed the entry into force of the Japan-India
Comprehensive Economic Partnership Agreement (CEPA) in August this
year and the commencement of negotiations on an agreement on social
security. With regard to the Delhi-Mumbai Industrial Corridor (DMIC), Prime
Minister Noda announced the intention of the Government of Japan to
make available finance totaling 4.5 billion US dollars in the next five years.
The two Prime Ministers concurred that they would promote participation
of Japanese companies to realize the DMIC.
In this regard, both Governments reached an agreement on such issues as
Japan's involvement with the Delhi-Mumbai Industrial Corridor
Development Corporation (DMICDC), relaxation of financial restrictions
so as to promote DMIC projects, allocation of natural gas for DMIC projects,
and early realization of three model projects, namely, seawater desalination
at Dahej, Gujarat, a microgrid system using large-scale photovoltaic (PV)
power generation Project at Neemrana Industrial Area in Rajasthan, and
gas-fired independent power producer (IPP) Project in Maharashtra. The
two Prime Ministers concurred on the need to strengthen bilateral
cooperation on infrastructure development in Southern India, improvement
of connectivity between Chennai and Bangalore, and development of India's
High-speed railway system. Prime Minister Noda pledged that the
Government of Japan would extend ODA loans totaling approximately 1.7
billion US dollars (approx. 134.3 billion yen) in total for two projects
including for the Delhi Mass Rapid Transport System Project. The two Prime
Ministers decided to enhance the earlier bilateral currency swap
arrangement from 3 billion US dollars to 15 billion US dollars. Concerning
civil nuclear cooperation, Prime Minister Singh noted that he understood
Japan's sensitivity well. The two Prime Ministers decided to move forward
What is CEPA ?
The second phase of Indias Look
East Policy aims to achieve just that.
Against this background, IndiaJapan ties are appropriately
positioned for take-off. The
significance of Prime Minister
Singhs visit to Japan can be seen in
four areas: conclusion of four years
of negotiations on a Comprehensive
Economic Partnership Agreement
(CEPA), deciding to speed up
negotiations on a civil nuclear deal,
simplifying visa procedures, and
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Transmission
System
Modernization and Strengthening
The Japanese economy has been Project in Hyderabad Metropolitan
strained in the aftermath of the Area (Yen Loan: 197.5 million
massive earthquake and tsunami, dollars)
accompanied by radiation leak at
the Fukushima nuclear power plant.
Conclusion
We cannot ignore the after effects
of the Great East Japan Earthquake As this year marks the fifth year
on India-Japan economic relations. since the establishment of the
F irst, the number of Indian IT Japan-India Strategic and Global
engineers working in Japan has been Partnership in 2006, with the 60th
reduced from 15,000 to 7,000, since anniversary of the establishment of
many Indian IT engineers have not diplomatic relations next year, this
yet returned to Japan. Further, since State visit by Prime Minister Noda
domestic supply chains have been has impressed on all sides the
damaged by the earthquake and friendly bilateral relationship
given the record appreciation of the between Japan and India, and
yen, Japanese companies are under contributed to further consolidating
even greater pressure to reallocate a trusting relationship at the leaders'
their production facilities to level. With regard to bilateral
emerging economies.
relations, the two Prime Ministers
All these factors provide a good
opportunity for further accelerating
Japanese FDI into India. The
following two tasks should be
addressed for further expanding
India-Japan economic relations.
First, the Delhi-Mumbai Industrial
Corridor should be started along the
right line, which will be the
touchstone for future India-Japan
collaboration. Second, human
exchanges should be promoted by
all means for cementing and
expanding bilateral relations.
Japanese Aid to India (1,545.7
million dollars)
Kerala Water Supply Project (II)
(Yen Loan: 273.1 million dollars)
Delhi Mass Rapid Transport
System Project (Phase 2) (II) (Yen
Loan: 113.2 million dollars)
Gujarat Forestry Development
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INDIA-NEPAL
Relations in New Light
collaboration
in
economic
development, Treaty of Trade, 1991
was signed on 6 December 1991. It
was explicitly expressed in the Treaty
to promote mutual trade between the
two countries for the benefits of
mutual sharing of scientific and
technical knowledge and experience.
Treaty of Transit, 1991 Recognizing
the fact that Nepal is a land-locked
country and its need to have access
to and from the sea to promote its
international trade, the Treaty made
the provision in its Article I that the
contracting parties shall accord to
traffic in transit freedom of transit
across their respective territories
through routes mutually agreed upon.
No distinction shall be made which is
based on flag of vessels, the places of
origin, departure, entry, exist,
destination, ownership of goods or
vessels. Further, exemption from
customs duties and from all transit
duties or other charges were made
except reasonable charges for
transportation and such other charges
as needed to commensurate with the
costs of services. In addition, for the
convenience of traffic in transit the
contracting parties agreed to provide
point or points of entry or exist
warehouses or shed and open space
for the storage of traffic in transit
awaiting customs clearance before
onward transmissions. As such the
requirements in course of import and
export of goods and articles from
Nepal was well established in this
Treaty.
Indo-Nepal Trade Treaty, 1996
This Treaty, signed on December 3,
1996 at Kathmandu, sets a landmark
in bilateral trade relation between
Nepal and India. It gave a new
direction in the trade related areas as
well as a scope for the trade
improvement especially to Nepal.
Some of the provisions made in the
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Beas
The Beas originates in Beas Kund, lying near the
Rohtang pass. It runs past Manali and Kulu, where
its beautiful valley is known as the Kulu valley. It
joins the Sutlej river near Harika, after being joined
by a few tributaries. The total length of the river is
615 .
Chenab
Jhelum
Ravi
The Ravi originates near the Rotang pass in the
Himalayas and follows a north-westerly course. It
turns to the south-west, near Dalhousie, and then
cuts a gorge in the Dhaola Dhar range entering
the Punjab plain near Madhopur. It flows as a part
of the Indo-Pakistan border for some distance before entering Pakistan and joining the Chenab
river.
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Sutlej
The Sutlej originates from the Rakas Lake, which
is connected to the Manasarovar lake by a stream,
in Tibet. It enters Pakistan near Sulemanki, and is
later joined by the Chenab. It has a total length of
almost 1500 km.
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LIBYAN CRISIS
Following a spate of protests in countries around the region,
protests broke out in several areas of Libya challenging Col.
Muammar Qaddafis 42-year rule. In late February, as the
governments response to these protests turned increasingly
violent, the UN Security Council responded by passing
Resolution 1970 to impose sanctions on Qaddafi and refer the
situation in Libya to the International Criminal Court (ICC). In
early March, the UN General Assembly suspended Libyas
membership to the Human Rights Council.On March 17th, the
UN Security Council passed Resolution 1973 calling for a no-fly zone to deter the bombardment of
civilian targets by government forces. Resolution 1973 marks the first time the Security Council passed
a resolution to authorize the use of force with an explicit reference to the responsibility to protect.An ad
hoc coalition composed of the US, France, and the UK began implementing the no-fly zone immediately
after the adoption of Resolution 1973. On March 27th, NATO assumed command of the military operation
in Libya. NATO follows Resolution 1973 in banning all flights in Libyan airspace, except those for
humanitarian and aid purposes, to make sure that civilians and civilian populated areas cannot be
subjected to air attack by Qaddafi forces.NATO should develop a civilian casualty tracking, analysis
and response mechanism with personnel in both Naples and in Benghazi. In addition to cataloguing all
available known data, the cell would also recognize and investigate all allegations of civilian casualties,
in anticipation of future development of an amends system.
France announced its official recognition for the Libyan National Council as the
sole representative of the Libyan people and became the first western country to
do so. France also handed over the building of the former Libyan Embassy to
Paris to the Council. It also announced to send an ambassador to Benghazi (Libyas
second largest city) which is the seat of Libyan National Council.The President of
France, Nicholas Sarkozy had presented the global plan on the Crisis in Libya at
an emergency summit of European Union heads of government in Brussels on 11
March 2011. European nations took actions to isolate the regime of Libyan dictator Muammar Gaddafi
with France officially recognising the rebel group in Libya. Britain pressed for the imposition of a nofly zone and Germany freezed assets worth billions. Foreign ministers from the G8 failed to reach any
agreement on military intervention in Libya during the two-day summit in Paris. Despite France pushing
for a no-fly zone, G8 nations couldnt reach consensus on the establishment of a no-fly zone against
Russian Angle
The air campaign against Colonel
Gaddafis forces in Libya has had
an unexpected consequence far
from the front lines: it has resulted
in the first distinct manifestation of disagreement
within Russias ruling duo. And the evident
difference in position between President Dmitry
Medvedev and Prime Minister Vladimir Putin has
revealed a fork in the road for Russias foreign
policy. When questions of war and peace are being
decided, powers that aspire to a global role should
occupy a clear position either for, or against. In
the case of Libya, Russia abstained from voting
on the UN Security Council resolution. Abstention
under President Medvedev contradicts Russias
prior strict adherence to a single foreign policy
principle: opposition of foreign interventions in
internal affairs.These days, the Kremlin remains
neutral, although the case of Libya is far more
urgent. As for the real goal of the military
campaign, there should be no illusions: the aim is
regime change. Any scenario that leaves Muammar
Gaddafi in power would be a moral and political
defeat for the West and West-friendly regimes in
the region.
To Moscow, Col Gaddafi is just one of many
partners, and for Russia to jeopardise the current
positive dynamic in relations with the US and the
EU for the sake of Tripoli makes no sense.
Deliberations about lost contracts in Libya are a
waste of breath: given the situation there now, there
would be no more business as usual with the
Libyan ruler anyway. The geopolitical purpose of
Indias Interests
Along with Russia and China, India
has been critical of the ongoing
western air strikes launched against
Libya on the ground that ordinary
Libyans would be affected and the air attacks
would prove counterproductive to the US
purported humanitarian objective. The External
Affairs Minister, Mr S. M. Krishna, has urged the
western nations, which have imposed a no fly
zone over Libya, to ceasefire and called upon the
Gaddafi regime and the rebel forces to abjure
violence and talk to each other. From an Indian
national security and foreign policy perspective,
the regime in Tripoli needs to be a friendly one
since Libya is an oil rich country and an eternal
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LOKPAL BILL
A Drama Unfold
would have given the Lokpal constitutional status. On December 22, the
government introduced the Bill
along with the Constitution (116th
Amendment) Bill in the Lok Sabha.
However the UPA government didnt
put it to vote in the Upper House.
This Bill incorporated some of the
recommendations of the Parliamentary Standing Committee on Personnel, Public Grievances, Law and Justice. This was a completely new Bill
as the government had withdrawn
its previous Lokpal Bill, which it introduced in the Lok Sabha on August
4, 2011, and later referred to the
Standing Committee. The Standing
Committee tabled its report on December 9, 2011. The August Bill did
not propose to confer constitutional
status on the Lokpal. The Standing
Committee recommended constitutional status so that the Lokpal had
higher stature and increased legitimacy. The committee believed that
constitutional status would enhance
the legal and moral authority of the
Lokpal institution and also insulate
the basic principles of the Lokpal
from the vicissitudes of ordinary or
transient majorities.
Yet, the Lok Sabha, which passed the
Lokpal and Lokayuktas Bill with a
few amendments, rejected the Constitution (116th Amendment) Bill,
which required two-thirds majority
of the House present and voting for
its passage. The object of the Constitution Amendment Bill is laudable
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Other Angle
Passing of Lokpal Bill seems quite
an impossible task,because every
party to it has its interest.The UPA
government summarily checkmated the social activists and
drove them into existential crisis
while simultaneously reducing the
Lokpal bill to a maere a game tool.
At the moment, the activists will be
happier with the no bill at all than
the current version of the bill tabled
by the government. None of the political parties wants the Lokpal bill.
Even if individual politicians want it,
they cant do a thing about it because their High Command does
not want it. But the countrys future
is at stake. The politicians are out
to maintain the status-quo in order
to protect their corrupt practices and
ill-gotten wealth. But Team Anna
has accepted this mission and is not
going to relent until their goals are
met. Team Anna rallied the masses
and raised hopes of a utopian tomor-
row - one with a clean and indepen- ness in W. Bengal. But at present,
dent CBI under an incorruptible everything she does is to extract the
Lokpal. But after an entire year of maximum from the Congress.
wrangling with the government.
Meanwhile, the elections in UP are
round the corner, and the Congress
has been expanding its reach with
some crafty electoral mathematics,
a specialization offered at the
Allahabad University. Ajit Singh is
already in the bag. He was traded
the lucrative civil aviation ministry
in return for joining the Congress
electoral alliance in UP. Likewise, the
Railway Ministry is being dangled
in front of Mulayam Singh Yadav of
the SP. Doing well in the UP elections
will surely serve as a shot in the arm
for the Congress. First, it might
cause a mental breakdown for
Mayawati, especially after the election commission decided to cover
her statues across the state. Secondly, it sets the stage for Rahul
Gandhis coronation as the PM. Besides, it will also give the Congress
greater leverage against Didi.
Conclusion
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LOKPAL BILL
The word Lokpal means an ombudsman in India. The word has been
derived from the Sanskrit words "loka" (people) and "pala" (protector/
caretaker). So the word Lokpal means 'protector of people'. The concept of Lokpal has been drawn up to root out corruption at all levels in
the prevailing Indian polity.
The Lokpal will be a three-member body with a chairperson who is or
was a chief justice or Supreme Court judge, and two members who are
or have been high courts judges or chief justices.Implementation of
the Lokpal bill will hopefully reduce corruption in India. The basic
idea of the Lok Pal is borrowed from the office of ombudsman, which
has played an effective role in checking corruption and wrong-doing in Scandinavian and other nations.
In early 1960s, mounting corruption in public administration set the winds blowing in favour of an
Ombudsman in India too.
The Administrative Reforms Commission (ARC) set up in 1966 recommended the constitution of a
two-tier machinery - of a Lokpal at the Centre, and Lokayukta(s) in the states.the Lokpal has to complete the inquiry within six months.
Duties of Lokpal are as follows:
1. To judge the cases and make jurisdictions against corruption cases with the Lokpal.
2. To judge whether a case is legal or whether a fake complaint has been made.
3. To potentially impose fines on a fake complaint, or even a short span of jail time, if the case is not
proved to be legally true.
In India, the Jan Lokpal Bill (also referred to as the citizens' ombudsman bill) is a proposed anticorruption law designed to effectively deter corruption, redress grievances and protect whistleblowers.
The law would create an ombudsman called the Lokpal; this would be an independent body similar to
the Election Commission of India with the power to prosecute politicians and bureaucrats without prior
government permission.
A compromise bill, merging the Government's version and that of the civil group's version (Jan Lokpal),
is being drafted by a committee of five Cabinet Ministers and five social activists. As of July 2011, the
most current version of the bill is version 2.3, according to the government website. For 42 years, the
government-drafted bill has failed to pass the Rajya Sabha, the upper house of the Parliament of India.The
first Lokpal Bill was passed in the 4th Lok Sabha, the lower house of the Parliament, in 1969 but stalled
in the Rajya Sabha. Subsequent Lokpal bills were introduced in 1971, 1977, 1985, 1989, 1996, 1998,
2001, 2005 and 2008 but all failed to pass.
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Latest Developments
Anna Hazare, a Gandhian rights activist, had
started a fast unto death at Jantar Mantar in New
Delhi demanding the passing of the bill. Hazare
called off his hunger strike on the 9th of April,
2011 bringing to an end his 98-hour protest after
the government issued a gazette notification constituting a 10-member Joint Committee of government ministers and civil society activists, including him, to draft a bill for the creation of an effective Lokpal.
Drafting Committee
The drafting committee was officially formed on
8 April 2011. It consists of ten members, including five from the government and five drawn from
society.
Chairmen
The Government of India accepted that the committee be co-chaired by a politician and an activist, non-politician. It is reported that Pranab
Mukherjee, from the political arena, and Shanti
Bhushan, from civil society, will fill those roles.
Government representation (Five Cabinet ministers )They are:
Pranab Mukherjee, Finance Minister, Co-Chairman;
P. Chidambaram, Minister of Home Affairs;
Veerappa Moily, Minister of Law and Justice;
Kapil Sibal, Minister for Communications and
Information Technology; and
Salman Khursid, Minister of Water Resources.
Civil society representation (Five leading social
activists). They are:
Shanti Bhushan, Former Minister of Law and
Justice, Co-Chairman;
Anna Hazare, Social Activist;
Prashant Bhushan, Lawyer;
they will be completely independent of the governments. No minister or bureaucrat will be able
to influence their investigations.
3. Cases against corrupt people will not linger on
for years anymore: Investigations in any case will
have to be completed in one year. Trial should be
completed in next one year so that the corrupt politician, officer or judge is sent to jail within two
years.
4. The loss that a corrupt person caused to the government will be recovered at the time of
conviction.
5. How will it help a common citizen: If any work
of any citizen is not done in prescribed time in any
government office, Lokpal will impose financial
penalty on guilty officers, which will be given as
compensation to the complainant.
6. So, you could approach Lokpal if your ration
card or passport or voter card is not being made
or if police is not registering your case or any other
work is not being done in prescribed time.
Lokpal will have to get it done in a month's time.
You could also report any case of corruption to
Lokpal like ration being siphoned off, poor quality roads been constructed or panchayat funds being siphoned off. Lokpal will have to complete its
investigations in a year, trial will be over in next
one year and the guilty will go to jail within two
years.
7. But won't the government appoint corrupt and
weak people as Lokpal members? That won't be
possible because its members will be selected by
judges, citizens and constitutional authorities and
not by politicians, through a completely transparent and participatory process.
8. What if some officer in Lokpal becomes corrupt? The entire functioning of Lokpal/ Lokayukta
will be completely transparent. Any complaint
against any officer of Lokpal shall be investigated
and the officer dismissed within two months.
Lokpal is prevented in the bill, stating "...no proceedings or decision of the Lokpal shall be liable to be
challenged, reviewed, quashed or called in question in any court of ordinary Civil Jurisdiction." Without judicial review, there is concern that Lokpal could become a extra-constitutional body with investigative and judicial powers whose decisions cannot be reviewed in regular courts.
Whether or not to include the Prime Minister and higher judiciary under the Lokpal remains as one of
the major issues of dispute. Although Hazare proposed Justice Verma, the former Chief Justice of the
Supreme Court, as the Chairman of the Lokpal Bill panel,Justice Verma later expressed his constitutional objections for including the Prime Minister and higher judiciary under Lokpal, stating "this
would foul with the basic structure of the constitution".
Difference Between Draft Lokpal Bill 2010 and Jan Lokpal Bill
Jan Lokpal Bill
(Citizen's Ombudsman Bill)
Lokpal will have no police powers and no ability to register an First Information Report or proceed with criminal investigations.
India is a country where honesty and integrity in public and private life have been glorified andupheld
in great epics such as the Vedas, Upanishads and in the books and practices of everyreligion practiced
here.Yet, India today is one of the most corrupt countries in the world.Bringing public servants under a
scanner which makes them strictly accountable is the start of amovement against corruption in India.
And one significant step in attacking the spectre ofcorruption in India will be the implementation of the
lok pal bill.
In the regular dispensation of government there are implicit and explicit ways that citizens canvoice
their grievances and demand change. But these are often difficult. Within administrative departments,
for example, any decision of one official can be appealed to a higher official, all the way up to the head
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of a department. However, this mechanism has inherent flaws.But it can be said that Lokpal is the need
of the hour and it will have to be implemented first ,then only we can decide whether it is fruitful or not.
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England.Rioting and looting was reported from several other parts of London, including Brixton in south
London, Enfield in north London and Oxford Street
in central London, the capital's main shopping district. Yet the riots we are seeing now are fundamentally different from those that have gone before. They
might, ostensibly, have been triggered by the police
shooting of Mark Duggan, a notorious gangster, in
north London; but they are fuelled by pure greed, by
a belief that something can be had for nothing. The
usual brakes on such behaviour either an appreciation that it is wrong, or by the prospect that the culprit will be caught and punished are largely absent.
If ever we wanted proof that Britain has been divided into two nations, then here it was. But hasnt it always
been? You did not need to look far beneath the surface at any time over the past 200 years or more to find
people ready to loot and rob and steal. After all, the London mob is hardly a new phenomenon. The word
itself was coined in the late 17th century as the citys population grew and aggressive crowds, fuelled by
alcohol and perceived grievance, took to the streets with alarming regularity.
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eration capacity to at least 20,000 MW by 2020. Also, by precluding India from taking advantage of the
economies of scale and safety innovations of the global nuclear industry, the NSG regime has driven up the
capital and operating costs and damaged the achievable safety potential of Indian nuclear power plants.
On the other hand, the NSG embargo has forced the Indian government and bureaucracy to support and
actively fund the development of Indian nuclear technologies and industrial capacities in all key areas
required to create and maintain a domestic nuclear industry. This has resulted in the creation of a large
pool of nuclear scientists, engineers and technicians that have developed new and unique innovations in
the areas of Fast Breeder Reactors, Thermal Breeder Reactors, the Thorium fuel cycle, nuclear fuel reprocessing and Tritium extraction & production.
Ironically, had the NSG sanctions not been in place, it would have been far more cost effective for India to
import foreign nuclear power plants and nuclear fuels than to fund the development of Indian nuclear
power generation technology, building of India's own nuclear reactors, and the development of domestic
uranium mining, milling and refining capacity.
The Indian nuclear power industry is expected to undergo a significant expansion in the coming years
thanks in part to the passing of The Indo-US nuclear deal. This agreement will allow India to carry out
trade of nuclear fuel and technologies with other countries and significantly enhance its power generation
capacity. when the agreement goes through, India is expected to generate an additional 25,000 MW of
nuclear power by 2020, bringing total estimated nuclear power generation to 45,000 MW.
India has already been using imported enriched uranium and are currently under International Atomic
Energy Agency (IAEA) safeguards, but it has developed various aspects of the nuclear fuel cycle to support
its reactors. Development of select technologies has been strongly affected by limited imports. Use of
heavy water reactors has been particularly attractive for the nation because it allows Uranium to be burnt
with little to no enrichment capabilities.
India has also done a great amount of work in the development of a Thorium centered fuel cycle. While
Uranium deposits in the nation are limited there are much greater reserves of Thorium and it could provide hundreds of times the energy with the same mass of fuel. The fact that Thorium can theoretically be
utilized in heavy water reactors has tied the development of the two. A prototype reactor that would burn
Uranium-Plutonium fuel while irradiating a Thorium blanket is under construction at the Madras/
Kalpakkam Atomic Power Station.
Uranium used for the weapons program has been separate from the power program, using Uranium from
indigenous reserves. This domestic reserve of 80,000 to 112,000 tons of uranium (approx 1% of global
uranium reserves) is large enough to supply all of India's commercial and military reactors as well as supply
all the needs of India's nuclear weapons arsenal. Currently, India's nuclear power reactors consume, at
most, 478 metric tonnes of uranium per year. Even if India were quadruple its nuclear power output (and
reactor base) to 20GW by 2020, nuclear power generation would only consume 2000 metric tonnes of
uranium per annum.
Based on India's known commercially viable reserves of 80,000 to 112,000 tons of uranium, this represents
a 40 to 50 years uranium supply for India's nuclear power reactors (note with reprocessing and breeder
reactor technology, this supply could be stretched out many times over). Furthermore, the uranium requirements of India's Nuclear Arsenal are only a fifteenth (1/15) of that required for power generation
(approx. 32 tonnes), meaning that India's domestic fissile material supply is more than enough to meet all
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needs for it strategic nuclear arsenal. Therefore, India has sufficient uranium resources to meet its strategic
and power requirements for the foreseeable future.
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Salient Milestones of
Atomic Energy in India
December 19, 1945 : Tata Institute of Fundamental Research (TIFR) Mumbai is inaugurated.
August 04, 1956 :APSARA - first research reactor in Asia, attains criticality at Trombay,
Mumbai.
February 19, 1960 : First lot of 10 Fuel Elements for CIRUS reactor, is fabricated at Trombay
reactor, attains criticality. After its successful refurbishment, the reactor was dedicated to the Nation on October 31, 2002.
rated at Trombay.
(IRE), owned by the Government of India and Government of Travancore, Cochine, is set up for recovering minerals, processing of rare earths compounds and Thorium - Uranium concentrates. In
1963, IRE becomes a full-fledged government undertaking under DAE
dia Limited (ECIL) is set up at Hyderabad for producing electronic systems, instruments and components.
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October 02, 1969 : Tarapur Atomic Power Sta 1970 : AMD hands over the Uranium Deposit at
Narwapahar to UCIL.
of UCIL is commissioned.
November 15, 1983 : Atomic Energy Regulatory Board (AERB) in Mumbai is constituted.
tion - Unit I at Kalpakkam starts commercial operation. Unit II goes commercial on March 21,
1986.
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1987 : AMD hands over Turamdih (West) uranium deposits to UCIL, and beach sand deposits in
Tamil Nadu to IRE.
September 17, 1987 : Nuclear Power Corporation of India Limited (NPCIL) is formed by converting the erstwhile Nuclear Power Board.
missioned at Alwaye. Dredge & Wet Concentrator Plant at Chavara, Kerala, is commissioned.
era is launched. Significant heavy mineral concentration along the East Coast, Andhra Pradesh, is
identified.
New
Thorium
Plant
at
OSCOM,Chhattrapur, Orissa is commissioned by
IRE.
Station - Unit I attains criticality. Its Unit II attains criticality on January 08, 1995
Unit I attains criticality. Its Unit II attains criticality on October 24, 1991.
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May 27, 1998 : Rajasthan Atomic Power Station Unit-2 is re-commissioned after enmasse replacement of coolant channels.
tion Source Indus-1 achieves electron beam current of 113 milli-ampere superceding the design
value of 100 milli-ampere.
demo facility Lead Mini Cell (LMC), for reprocessing of FBTR carbide fuel on lab scale, are commissioned at IGCAR.
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IAEA financial resources include the regular budget and voluntary contributions. The Regular Budget for 2008 amounts to 277 million. The target
for voluntary contributions to the Technical Cooperation Fund for 2008 is $80 million.
Organizational Profile
The IAEA Secretariat is headquartered at the
Vienna International Centre in Vienna, Austria.
Operational liaison and regional offices are located
in Geneva, Switzerland; New York, USA; Toronto,
Canada; and Tokyo, Japan. The IAEA runs or supports research centers and scientific laboratories
in Vienna and Seibersdorf, Austria; Monaco; and
Trieste, Italy.
Relationship with
United Nations
As an independent international organization related to the United Nations system, the IAEAs
relationship with the UN is regulated by special
agreement. In terms of its Statute, the IAEA reports annually to the UN General Assembly and,
when appropriate, to the Security Council regarding non-compliance by States with their safeguards
obligations as well as on matters relating to international peace and security.
The IAEA Secretariat is a team of 2200 multi-disciplinary professional and support staff from more
than 90 countries. The Agency is led by Director
General Yukiya Amano and six Deputy Directors
General who head the major departments.
IAEA programmes and budgets are set through
decisions of its policymaking bodies - the 35-member Board of Governors and the General Conference of all Member States. Reports on IAEA activities are submitted periodically or as cases warrant to the UN Security Council and UN General
Assembly.
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The world community should join hands to eliminate the risk of sensitive and valuable materials and
technologies falling into hands of terrorists and illicit traffickers. There should be zero tolerance for
individuals and groups which engage in illegal trafficking in nuclear items.
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is there any reference to the NPT. Instead, it reaffirms the fundamental responsibility of States, consistent with their international obligations, to maintain effective security of all nuclear materials. These
materials are defined as including nuclear materials used in nuclear weapons, and nuclear facilities
under their control.
The document calls for wider support for existing
international instruments on nuclear security such
as the 1979 Convention on the Physical Protection
of Nuclear Material and its 2005 amendment, the
Convention on the Suppression of Nuclear Terrorism.
There is no reference in the documents to U.N. Security Council Resolution 1887 on nuclear security
and non-proliferation, passed last year at the urging
or U.S. President Barack Obama. Indian officials say
the reference in that to NPT adherence meant it could
not be included in the communiqu.
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Occupy Movement
Danger Bell is Ringing
Whatever the original impulse behind
Occupy Wall Street, or the speculation of what the movement might
become, this much is true: The
groups of protesters, now camping or
hanging out in many U.S. cities, and
the police agencies that have responsibility for public safety and order, are
both shifting into new postures of
action and response. Whether that
evolving chemistry will push things
toward more confrontation remains
unclear. But the combination new
participants, new police tactics is
clearly opening an uncertain chapter
in a story that from its inception has
embraced the notion of unplanned,
unscripted civil action.
The Occupy movement is an international protest movement which is
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Impact
In the United States, the protests have
helped shift the national dialogue
from the deficit to economic problems
many ordinary Americans face, such
as unemployment, the large amount
of student and other personal debt
that burdens middle class and working class Americans, and other major
issues of social inequality, such as
homelessness. The movement appears to have generated a national
conversation about income inequality, as evidenced by the fact that print
and broadcast news mentioned the
term income inequality more than
five times more often during the last
week of October 2011 than during
the week before the occupation began.
The increased public focus on the
growing income gap between economic elites and the middle class and
on the importance of the rights of
ordinary workers brought about by the
Occupy Movement gave a significant
boost to organized labor's campaign
to repeal an anti-labor union law
passed in the State of Ohio known
as Ohio Senate Bill 5 (SB5). In the
November 2011 elections, Ohio voters repealed SB 5. In November 2011,
U.S. Congressman Ted Deutch, member of the House Judiciary Committee, introduced the "Outlawing Cor-
Where India
Stands
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Article
By : Dr. Divya
Three major elements of
the United Progressive
Alliance government's
commitment to provide food security
to the people are reforming the
public distribution system (PDS),
raising foodgrain productivity and
production, and creating a
decentralised, modern warehousing
system.
Ideally, the reforms in the PDS
should have come first for the
availability and delivery of subsidised
foodgrains to become meaningful
and comprehensive. Be that as it may,
the recommendation of the National
Advisory Council (NAC) to launch
universal PDS in one-fourth of all
districts or blocks for a start should be
seen as a paradigm shift towards
universalisation. This move reveals
that the all-powerful NAC headed by
UPA chairperson Sonia Gandhi has
realised that the ability to deliver
cheap foodgrains will be contingent
on availability availability that is
home-grown, not based on imports.
In order to make a serious effort to
meet the provisions of the proposed
food security Bill, it is essential to
enhance the production of wheat,
rice, pulses, oilseeds and millets.
This, in turn, needs a policy review in
favour of land reforms, securing
fertile agricultural land for foodgrain
production rather than allowing the
indiscriminate setting up of special
economic zones (SEZs), mega-food
parks and builders' colonies on
farmers' fields.
Vol. - 17
Article
population at Rs.3 a kg in the 150
districts in addition to the BPL outgo.
In a bad year, this may come from
cutting APL or Open Market Sale
Scheme allocations.
It is clear by now that the key to
universalisation is the availability of
foodgrains. For this reason, even the
activists working under the banner of
the Right to Food Campaign have
accepted phased universalisation.
The Food Ministry's cautious
estimate is that the average annual
availability for the PDS is about 43
million tonnes. The NAC seems to
have gone by the Planning
Commission estimate of availability
of about 50 to 55 million tonnes to
ensure the supply of cheap
foodgrains in 150 districts besides
fulfilling regular commitments of
buffer and welfare schemes.
It is obvious that the UPA's
seeming benevolence on the food
security front is not going to be
entirely without strings. The
underlying principle is that the
subsidy accruing from providing
foodgrains at cheap rates will come
from withdrawal of subsidies on
petrol, diesel and, gradually,
kerosene, and other unforeseen
measures.
Besides ensuring minimum
foodgrain entitlements at a discount,
the draft of the National Food
Security Act will indicate enabling
clauses with regard to enhancing
foodgrain production, public distribution reforms and improvement in
drinking water, sanitation, health and
hygiene for better intake and
absorption of food by the poor.
In other words, the proposed Bill
will provide for food security but call
for nutrition security.
Salient features of the Food Security
Bill are as follows:
President Pratibha Patil on June 4,
2009 said that a National Food
Security Act would be formulated
whereby each BPL family would be
entitled by law to get 25 kg of rice or
wheat per month at Rs 3 a kg, a
Vol. - 17
Article
items, namely, clothing, footwear,
durable goods, education and
institutional medical expenses and
30-day recall/reference period for
remaining items. The percentage of
poor in 2004-05 estimated from URP
consumption distribution of NSS 61st
Round of consumer expenditure data
are comparable with the poverty
estimates of 1993-94 (50th Round)
which was 36 per cent for the country
as a whole. The percentage of poor in
2004-05 estimated from MRP
consumption distribution of NSS 61st
Round of consumer expenditure data
Right to Recall
Solidarity of Democracy
Should we have the right to 'recall' MPs? It can be
done in America, why not here? Few of us had
heard of recall until 2003 when California Governor Gray Davis lost the recall ballot to the
'governator', Arnold Swarzenegger. The idea is
simple, as a Civitas online briefing proposed yesterday. Sometimes voters regret the choice they
made at the last general election and do not want
to wait until the next time. If a proportion of the
electorate (say 20%) can be persuaded to sign a
petition to recall the elected office holder, then an
immediate by-election must be held.
The process should not be too easy to prevent constant harassment by disgruntled rivals but, if a significant proportion of the electorate wants a ballot, it should be held. How many signatures should
be required? In ten of the 18 American states 25
per cent of the electorate is needed, while Louisiana requires 33.3 per cent and Kansas 40 per cent.
At 12 per cent, California has the lowest requirement. A recall ballot is a costly procedure and has
been used sparingly. Only two state governors have
ever been recalled: North Dakota Governor Lynn
Frazier in 1921 and California's Gray Davis in 2003.
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The very process of legislative functioning is subverted, leading to incalculable harm to the representation of democratic institutions.
The National Commission to Review the Working
of the Constitution has pointed out in its report
how a Parliamentary system, unlike the Presidential system, lays emphasis on accountability.
Half a centurys experience of the working of the
Constitution has brought to the fore several inadequacies, failures and distortions. The National
Commission referred in particular to the emergence
of the unhealthy role of money and mafia power
and to criminalisation, corruption, communalism
and casteism.
The Electorate has no role in the selection of candidates for election and the majority of the candidates are elected by minority of votes under the
first-past-the-post system.
American Experience
Eighteen States in the American Federation permit recall elections to remove their State Officers.
In 1921, North Dakotas Governor Lin Frazier was
recalled over a dispute about state-owned industries. In 2003, the Californian Governor, Gray
Davis, was recalled over mismanagement of the
Stage budget. In many of these States, the petition
for recall must identify some form of malfeasance
or misconduct while in office. The minimum number of signatures of voters and time limit to qualify
a recall varies between States.
Quite often, a recall triggers a simultaneous special election, where the vote on the recall and the
replacement recall succeed are on the same
ballet. In 1988, there was a successful petition-drive
to recall the Arizona Governor. But before the
completion of the process, he was impeached and
removed from the Office by the Senate.
Recall in Canada
Canadian provinces have been effective using the
device of recall to infuse discipline in the representatives. The Canadian province of British Columbia enacted representative recall in 1995. The
voters in that province can petition the Government to have a sitting representative removed from
office.
Even a Premier presently leading a Government
can be removed from office if enough registered
voters signed the petition.
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A by-election will follow. In January 2003, a record 22 recall efforts were launched.
Venezuelan Constitution
The 1999 Constitution of Venezuela enables a recall of any elected representative including the President.
Article 72 of the Constitution declares that all offices filled by popular vote are subject to revocation.
When half the term of the office has elapsed, voters representing at least 20 per cent of the registered
voters in the constituency may petition for the calling of a referendum to revoke the mandate of the
official.
When the number of voters equals to or is greater than the number of those who elected the representative vote in favour of the recall, the representatives mandate shall be deemed to have been revoked.
Action will be taken to fill the permanent vacancy as per the Constitution. The provision for recall was
successfully utilised in 2004.
Switzerland model
Switzerland is often cited as the strongest example of modern direct democracy. It has put to use the
initiative and the referendum at both local and federal levels. Initiatives are proposals, drafted by a citizen
or group of citizens that by virtue of attaining a requisite member of signatures on a petition, are put to the
electorate for acceptance or rejection. However, the populace showed its conservative nature, approving
only about 10 per cent of the initiatives put before them. Recall is not much in use in Switzerland.
Flawed system
The National Commission correctly identified the main cause and source of political decay in India as the
ineptness of the electoral process, which has not been able to keep out criminal, anti-social and undesirable elements from participating in and even dominating the political scene and polluting the electoral and
parliamentary processes.
A Constitution, however lofty its exhortations and sentiments, is not a self-executing document. The
present system by which the voters are allowed to assert their sovereignty only once in five years is
woefully flawed.
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prices in the future and to provide some understanding of the dynamics and persistence of the observed
global price changes. There is an emerging and reasonable consensus among experts and academics about
the range of causes. However, debate is ongoing about
the relative contribution of these causes. There is certainly no one, single cause; rather, many factors are
interacting in different, locally specific ways. Causes
vary between different places and over time, as has
happened in previous commodity booms. Some are
cyclical, some are structural and some are unique The
cost of food climbed 25 percent from a year earlier in
December, based on the FAO figures.The agencys
food-price indicator rose from 206 points in November. Record fuel prices, weather- related crop problems, increasing demand from the growing Indian and
Chinese middle classes, and the push to grow corn
for ethanol fuel all contributed to the crisis that year.
Global food production will have to rise 70 percent
by 2050 as the world population expands to 9.1 billion people from about 6.8 billion people in 2010,
the FAO has said.
Main factors responsible for the recent rises
in food prices:-
Food in Figures
Weather disruptions, including serious droughts, 20% Portion of US corn used to produce five bil-
have affected output in several key producing countries (Australia, Turkey, Ukraine and parts of North
America) in the mid-2000s. This has led to two successive years of negative growth in world cereal production.
Under-investment in rural infrastructure and agri- $500m The UN World Food Programme's short-
cultural innovation.
World production of cereals has slowed, causing a 130% The rise in the cost of wheat in 12 months.
decline in stocks over the last decade. This has weakened the ability of the world food system to cope with 16 times The overall food consumption of the
shocks and created conditions in which short-term
shocks cause large price increases (Wiggins,
2008).High cost of oil and energy is affecting transportation of agricultural inputs and outputs, mechanical cultivation, fertilisers and pesticides.
Increasing and changing demand in China and In- $900 The cost of one tonne of Thai premier rice,
It has been argued that by 2030 there will be 600 million more chronically under-nourished people in the
The rise in global commodity prices is fueling inflation everywhere particularly in developing countries
where food and energy forms a major percentage of
the inflation basket.This has forced countries like India and China to accelerate interest rate hikes to cool
down inflation.Rising Food Prices has caused distress
in a number of places leading to food riots in Africa
and have been said to be a leading cause of the revolutions in the Middle East.Oil Prices continues to increase unabated as dollar decreases with US Money
Printing.Commodities are touching new all time
peaks as rising global demand,finite resources,money
printing by developed countries fuel price hikes.Silver
has been increasing in a parabolic manner with other
commodities too showing heart-stopping jumps in
prices.The rise in global wheat,rice prices has been
at a record as well.Almost all commodities have seen
sharp prices increase.
Specific policies are needed to deal with the changing causes and consequences of high food prices, to
help the most vulnerable people in the short term,
while working to stabilise food prices by increasing
agricultural production in the long term. A detailed
set of policy prescriptions has been laid out in the
Comprehensive Framework for Action (CFA), developed by the High Level Task Force on the Global
Food Crisis. The CFA highlights two major objectives meeting immediate needs, and building
longer-term resilience with related outcomes and
actions.
These include:
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What is NATO
The North Atlantic Treaty Organization (NATO)
is an intergovernmental military alliance based on
the North Atlantic Treaty which was signed on 4
April 1949. The NATO headquarters are in Brussels, Belgium, and the organization constitutes a
system of collective defence whereby its member
states agree to mutual defence in response to an attack by any external party.
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For its first few years, NATO was not much more
than a political association. However, the Korean
War galvanized the member states, and an integrated
military structure was built up under the direction
of two U.S. supreme commanders. The first NATO
Secretary General, Lord Ismay, famously stated the
organization's goal was "to keep the Russians out,
the Americans in, and the Germans down". Doubts
over the strength of the relationship between the
European states and the United States ebbed and
flowed, along with doubts over the credibility of
the NATO defence against a prospective Soviet invasion doubts that led to the development of the independent French nuclear deterrent and the withdrawal of the French from NATO's military structure from 1966.
and the United Kingdom is considered the precursor to the NATO agreement. The treaty and the Soviet Berlin Blockade led to the creation of the Western European Union's Defence Organization in September 1948. However, participation of the United
States was thought necessary in order to counter the
military power of the USSR, and therefore talks for
a new military alliance began almost immediately.
These talks resulted in the North Atlantic Treaty,
which was signed in Washington, D.C. on 4 April
1949. It included the five Treaty of Brussels states,
as well as the United States, Canada, Portugal, Italy,
Norway, Denmark and Iceland. Popular support for
the Treaty was not unanimous; some Icelanders commenced a pro-neutrality, anti-membership riot in
March 1949.
After the fall of the Berlin Wall in 1989, the organization became drawn into the Balkans while building better links with former potential enemies to
the east, which culminated with several former
Warsaw Pact states joining the alliance in 1999 and
2004. On 1 April 2009, membership was enlarged
to 28 with the entrance of Albania and Croatia. Since
the 11 September attacks, NATO has attempted to
refocus itself to new challenges and has deployed
troops to Afghanistan as well as trainers to Iraq.
The Berlin Plus agreement is a comprehensive package of agreements made between NATO and the
European Union on 16 December 2002. With this
agreement the EU was given the possibility to use
NATO assets in case it wanted to act independently
in an international crisis, on the condition that
NATO itself did not want to act the so-called "right
of first refusal". Only if NATO refused to act would
the EU have the option to act. The combined military spending of all NATO members constitutes over
70% of the world's defence spending, with the United
States alone accounting for about half the total military spending of the world and the United Kingdom, France, Germany, and Italy accounting for a
further 15%.
Beginnings
The Treaty of Brussels, signed on 17 March 1948
by Belgium, the Netherlands, Luxembourg, France
.
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has achieved. Hence, the 7.6251 NATO rifle cartridge was introduced in the 1950s as a standard firearm cartridge among many NATO countries.
Fabrique Nationale de Herstal's FAL became the
most popular 7.62 NATO rifle in Europe and served
into the early 1990s. Also, aircraft marshalling signals were standardized, so that any NATO aircraft
could land at any NATO base. Other standards such
as the NATO phonetic alphabet have made their way
beyond NATO into civilian use.
Cold War
The outbreak of the Korean War in 1950 was crucial for NATO as it raised the apparent threat level
greatly (all Communist countries were suspected of
working together) and forced the alliance to develop
concrete military plans. The 1952 Lisbon conference, seeking to provide the forces necessary for
NATO's Long-Term Defence Plan, called for an
expansion to 96 divisions. However this requirement
was dropped the following year to roughly 35 divisions with heavier use to be made of nuclear weapons. At this time, NATO could call on about 15 ready
divisions in Central Europe, and another ten in Italy
and Scandinavia. Also at Lisbon, the post of Secretary General of NATO as the organization's chief
civilian was also created, and Baron Hastings Ismay
eventually appointed to the post. Later, in September 1952, the first major NATO maritime exercises
began; Operation Mainbrace brought together 200
ships and over 50,000 personnel to practice the defence of Denmark and Norway.
Greece and Turkey joined the alliance the same year,
forcing a series of controversial negotiations, in
which the United States and Britain were the primary disputants, over how to bring the two countries into the military command structure. Meanwhile, while this overt military preparation was
going on, covert stay-behind arrangements to continue resistance after a successful Soviet invasion
('Operation Gladio'), initially made by the Western European Union, were being transferred to
NATO control. Ultimately unofficial bonds began
to grow between NATO's armed forces, such as the
NATO Tiger Association and competitions such as
the Canadian Army Trophy for tank gunnery.
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Escalation
With the background of the build-up of tension between the Soviet Union and the United States,
NATO decided, under the impetus of the Reagan
presidency, to deploy Pershing II and cruise missiles in Western Europe, primarily West Germany.
These missiles were theatre nuclear weapons intended to strike targets on the battlefield if the Soviets invaded West Germany. Yet support for the
deployment was wavering and many doubted
whether the push for deployment could be sustained.
On 1 September 1983, the Soviet Union shot down
a Korean passenger airliner when it crossed into
Soviet airspacean act which Reagan characterized
as a "massacre". The barbarity of this act, as the U.S.
and indeed the world understood it, galvanized support for the deploymentwhich stood in place until the later accords between Reagan and Mikhail
Gorbachev.
The membership of the organization at this time
remained largely static. In 1974, as a consequence
of the Turkish invasion of Cyprus, Greece withdrew
its forces from NATO's military command structure but, with Turkish cooperation, were readmitted in 1980. On 30 May 1982, NATO gained a new
member when, following a referendum, the newly
democratic Spain joined the alliance.
In November 1983, NATO manoeuvres simulating
a nuclear launch caused panic in the Kremlin. The
Soviet leadership, led by ailing General Secretary
Yuri Andropov, became concerned that the
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NATO states. Operation Peaceful Summit temporarily enhanced this patrolling during the 2006 Riga
summit.
The 2006 Riga summit was held in Riga, Latvia,
which had joined the Atlantic Alliance two years
earlier. It is the first NATO summit to be held in a
country that was part of the Soviet Union, and the
second one in a former Comecon country (after the
2002 Prague summit). Energy Security was one of
the main themes of the Riga Summit. At the April
2008 summit in Bucharest, Romania, NATO agreed
to the accession of Croatia and Albania and invited
them to join. Both countries joined NATO in April
2009. Ukraine and Georgia were also told that they
will eventually become members.
Future Enlargement
New membership in the alliance has been largely
from Eastern Europe and the Balkans, including
former members of the Warsaw Pact.
At the 2008 summit in Bucharest, three countries were promised future invitations: the
Republic of Macedonia, Georgia and Ukraine.
Though it has completed the requirements for membership, the accession of Macedonia is blocked by
Greece, pending resolution of the Macedonia naming dispute. Turkey has also threatened to block an
attempt from Cyprus.[citation needed]
Other potential candidate countries include
Montenegro and Bosnia and Herzegovina, which
joined the Adriatic Charter of potential members in
2008. Russia, as referred to above, continues to oppose further expansion, seeing it as inconsistent with
understandings between Soviet leader Mikhail
Gorbachev and U.S. President George H. W. Bush
that allowed for a peaceful German reunification.
NATO's expansion policy is seen by Moscow as a
continuation of a Cold War attempt to surround and
isolate Russia.
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nuclear armaments; and separate limit of 700 deployed ICBMs, deployed SLBMs, and deployed
heavy bombers equipped for nuclear armaments.
The White House noted that the warheads on deployed ICBMs and deployed SLBMs will count toward the limit and each deployed heavy bomber
equipped for nuclear armaments would count as one
warhead toward this limit. The warhead limit itself
was 74 percent lower than the limit of the 1991
START Treaty and 30 percent lower than the deployed strategic warhead limit of the 2002 Moscow Treaty, a White House statement added. Further, the limit on launchers and bombers is less than
half the corresponding strategic nuclear delivery
vehicle limit of the previous START Treaty.
In terms of verification and transparency, the new
treaty has a verification regime that combines the
appropriate elements of the 1991 START Treaty
with new elements tailored to the limitations of the
Treaty. In this regard, the White House also stated
that measures under the new treaty include on-site
inspections and exhibitions, data exchanges and notifications related to strategic offensive arms and
facilities covered by the Treaty.
The signing of the new treaty came two days after
the announcement of the Obama administration of
its Nuclear Posture Review, in which the U.S. forswore nuclear attacks on all nuclear states compliant with the Non-Proliferation treaty. However, the
U.S. reiterated its commitment to maintaining a
credible nuclear deterrent.
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Negotiations
Continued negotiation of the START process was
delayed several times because US agreement terms
were considered non-negotiable by pre-Gorbachev
Soviet rulers. President Reagan's introduction of the
Strategic Defense Initiative program in 1983 was
viewed as a threat by the Soviet Union, and the Soviets withdrew from setting a timetable for further
negotiations.
Due to these facts, a dramatic nuclear arms race proceeded during the 1980s, and essentially ended in
1991 by nuclear parity preservation at a level of
more than ten thousand strategic warheads on both
sides. This treaty also stated that the United States
and Russia would have 6,000 fighter aircraft, 10,000
tanks, 20,000 artillery pieces and 2,000 attack helicopters.
Ratification
It was signed on July 31, 1991, five months before
the collapse of the Soviet Union. Entry-into-force
was delayed due to the collapse of the USSR and
awaiting an Annex that enforced the terms of the
treaty upon the newly independent states of Russia,
Belarus, Kazakhstan, and Ukraine. The latter three
agreed to transport their nuclear arms to Russia for
disposal.
It remains in effect between the U.S. and Russia,
Belarus, Kazakhstan, and Ukraine These latter three
have disarmed since becoming independent nations
in the wake of the break up of the Soviet Union.
Today, the United States has 3,696 and Russia has
4,237 deployed strategic warheads. The US has
roughly 10,000 total warheads, counting strategic
and tactical, both deployed and in reserves. The figures for Russia are less reliable, but are considered
to be in the range of 15,000 to 17,000 total warheads.
Implementation
365 B-52Gs were flown to the Aerospace Mainte-
Efficacy
Belarus, Kazakhstan and Ukraine have disposed of
all their nuclear weapons or transferred them to
Russia; while the U.S. and Russia have reduced the
capacity of delivery vehicles to 1,600 each, with no
more than 6,000 warheads.
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ingness "to make new steps in the sphere of disarmament," however, saying they were waiting for
the U.S. to abandon attempts to "surround Russia
with a missile defense ring." This referred to the
placement of ten interceptor missiles in Poland, as
well as an accompanying radar in the Czech Republic.
Russian President Dmitri Medvedev, said, the day
after the U.S. elections, in his first state of the nation address, that Russia would move to deploy shortrange Iskander missile systems in the western exclave of Kaliningrad "to neutralize if necessary the
anti-ballistic missile system in Europe." Russia insists that any movement towards a new START
should be a legally binding document, and must,
then, set lower ceilings on the number of nuclear
warheads, and their delivery vehicles.
On March 17, 2009, Russian President Dmitri
Medvedev signaled that Russia would begin a "largescale" rearmament and renewal of Russia's nuclear
arsenal. President Medvedev accused NATO of pushing ahead with expansion near Russian borders and
ordered that this rearmament commence in 2011
with increased army, naval, and nuclear capabilities. Additionally, the head of Russia's strategic
missile forces, Nikolai Solovtsov, told news agencies that Russia would start deploying its next-generation RS-24 missiles after the December 5 expiry
of the START-1 treaty with the United States. Russia hopes to change the START-1 treaty with a new
accord. The increased tensions come despite the
warming of relations between the United States and
Russia ever since U.S. President Barack Obama took
office.
As of May 4, 2009, the United States and Russia
began the process of renegotiating START, as well
as counting both nuclear warheads and their delivery vehicles when making a new agreement. While
setting aside problematic issues between the two
countries, both sides agreed to make further cuts in
the number of warheads they have deployed to
around 1,000 to 1,500 each.
START II
START II (for Strategic Arms Reduction Treaty) was
signed by United States President George H. W. Bush
and Russian President Boris Yeltsin on January 3,
1993, banning the use of MIRVs on ICBMs. Hence,
it is often cited as the De-MIRV-ing Agreement.
MIRVed land-based ICBMs are considered destabilizing because they tend to put a premium on striking first. When a missile is MIRVed, it is able to
carry many warheads and deliver them to separate
targets and thereby possibly destroy more than one
missile of an enemy who does not strike first in their
silos.
The LGM-118 Peacekeeper missile was capable of
carrying up to 10 MIRVs. However, in 2001, President George W. Bush set a plan in motion to reduce
the countrys missile forces from 6,000 to between
1,700 and 2,200. Russian President Vladimir Putin
agreed to follow a similar plan and in October 2002
the deactivation of the Peacekeeper missile began
and was completed by 19 September 2005.
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The Minuteman III ICBM is the primary U.S. missile system and can carry up to 3 MIRVs. Hypothetically, if one were to assume that each side had
100 missiles, with 5 warheads each, and further that
each side had a 95 percent chance of neutralizing
the opponent's missiles in their silos by firing 2
warheads at each silo, then the side that strikes first
can reduce the enemy ICBM force from 100 missiles to about 5 by firing 40 missiles with 200 warheads and keeping the remaining 60 missiles in reserve. Thus the destruction capability is greatly increased by MIRVs but the number of targets does
not increase.
START II followed START I and, although ratified,
the treaty has never entered into force; in other words
never been activated. On June 14, 2002, one day after the U.S. withdrew from the Anti-Ballistic Missile Treaty, Russia withdrew from START II. The
historic agreement started on June 17, 1992 with
the signing of a 'Joint Understanding' by the presidents. The official signing of the treaty by the presidents took place on January 3, 1993. It was ratified
by the U.S. Senate on January 26, 1996 with a vote
of 87-4. However, Russian ratification was stalled
in the Duma for many years. It was postponed a
number of times to protest American invasion of
Iraq and military actions in Kosovo, as well as to
oppose the expansion of NATO.
As the years passed, the treaty became less relevant
and both sides started to lose interest in it. For the
Americans, the main issue became the modification
of the ABM Treaty to allow the U.S. to deploy a
national missile defense system, a move which Russia fiercely opposed. On April 14, 2000 the Duma
did finally ratify the treaty, in a largely symbolic
move since the ratification was made contingent on
preserving the ABM Treaty, which it was clear the
U.S. was not prepared to do.
START II did not enter into force because the Russian ratification made this contingent on U.S. Senate ratifying a September 1997 addendum to START
II which included agreed statements on ABM-TMD
demarcation. Neither of these occurred because of
U.S. Senate opposition, where a faction objected to
START III
The third Strategic Arms Reduction Treaty, or
START III, was a proposed Nuclear disarmament
treaty negotiated between the United States and
Russia. It was never signed. It meant to drastically
reduce the deployed nuclear weapons arsenals of
both countries. The treaty was meant to continue
the weapons reduction efforts that had taken place
in the START I and START II negotiations. The
framework for negotiations of the treaty began with
talks in Helsinki between President Bill Clinton and
President Boris Yeltsin in 1997.
Proposed basic elements of the treat included:
By December 31, 2007, coterminous with START
II, the United States and Russia would each deploy
no more than 2,000 to 2,500 strategic nuclear warheads on intercontinental ballistic missiles, submarine-launched ballistic missiles, and heavy bombers. Russian officials stated that they were willing
to consider negotiated levels as low as 1,500 strategic nuclear warheads within the context of a START
III agreement.
The United States and Russia would negotiate measures relating to the transparency of strategic
nuclear warhead inventories and the destruction of
strategic nuclear warheads, as well as other jointly
agreed technical and organizational measures to
promote the irreversibility of deep reductions.
The talks faced a number of obstacles. Russia opposed the eastward expansion of NATO and Ameri-
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SORT
The Treaty Between the United States of America
and the Russian Federation on Strategic Offensive
Reductions (SORT), better known as the Moscow
Treaty "represents an important element of the new
strategic relationship between the United States and
Russia". with both parties agreeing to limit their
nuclear arsenal to 17002200 operationally deployed
warheads each. It was signed in Moscow on May
24, 2002. SORT came into force on June 1, 2003
after the Bush-Putin ratification in St. Petersburg,
and expires on December 31, 2012. Either party can
withdraw from the treaty upon giving three months
written notice to the other.
Implementation
Lawrence Livermore National Laboratory reported
that President Bush directed the US military to cut
its stockpile of both deployed and reserve nuclear
weapons in half by 2012. The goal was achieved in
2007, a reduction of US nuclear warheads to just
over 50 percent of the 2001 total. A further proposal by Bush will bring the total down another 15%.
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SALT I
SALT I is the common name for the Strategic Arms
Limitation Talks Agreement, also known as Strategic Arms Limitation Treaty. SALT I froze the number of strategic ballistic missile launchers at existing levels, and provided for the addition of new submarine-launched ballistic missile (SLBM) launchers only after the same number of older intercontinental ballistic missile (ICBM) and SLBM launchers had been dismantled.
The strategic nuclear forces niche of the Soviet Union
and the United States were changing in character in
1968. The U.S.'s total number of missiles had been
static since 1967 at 1,054 ICBMs and 656 SLBMs,
but there was an increasing number of missiles with
multiple independently targetable reentry vehicle
(MIRV) warheads being deployed. MIRV's carried
multiple nuclear warheads, often with dummies, to
confuse ABM systems, making MIRV defence by
ABM systems increasingly difficult and expensive.
One clause of the treaty required both countries to
limit the number of sites protected by an anti-ballistic missile (ABM) system to two each. The Soviet Union had deployed such a system around Moscow in 1966 and the United States announced an
ABM program to protect twelve ICBM sites in 1967.
A modified two-tier Moscow ABM system is still
used. The U.S. built only one ABM site to protect
Minuteman base in North Dakota where the "Safeguard Program" was deployed. Due to the system's
expense and limited effectiveness, the Pentagon disbanded "Safeguard" in 1975.
Negotiations lasted from November 17, 1969 until
May 1972 in a series of meetings beginning in
Helsinki, with the U.S. delegation headed by Gerard
C. Smith, director of the Arms Control and Disarmament Agency. Subsequent sessions alternated
between Vienna and Helsinki. After a long deadlock, the first results of SALT I came in May 1971,
when an agreement was reached over ABM systems.
Further discussion brought the negotiations to an
end on May 26, 1972 in Moscow when Richard
Nixon and Leonid Brezhnev signed the Anti-Ballistic Missile Treaty and the Interim Agreement Between The United States of America and The Union
of Soviet Socialist Republics on Certain Measures
With Respect to the Limitation of Strategic Offensive Arms. A number of agreed statements were also
made. This helped improve relations between the
USA and the USSR.
SALT II
It was a controversial experiment of negotiations
between Jimmy Carter and Leonid Brezhnev from
1977 to 1979 between the U.S. and the Soviet Union,
which sought to curtail the manufacture of strategic nuclear weapons. It was a continuation of the
progress made during the SALT I talks. SALT II was
the first nuclear arms treaty which assumed real
reductions in strategic forces to 2,250 of all categories of delivery vehicles on both sides.
SALT II helped the U.S. to discourage the Soviets
from arming their third generation ICBMs of SS17, SS-19 and SS-18 types with many more MIRVs.
In the late 1970s the USSR's missile design bureaus
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had developed experimental versions of these missiles equipped with anywhere from 10 to 38 thermonuclear warheads each. Additionally, the Soviets secretly agreed to reduce Tu-22M production to
thirty aircraft per year and not to give them an intercontinental range.
It was particularly important for the US to limit
Soviet efforts in the Intermediate-Range Nuclear
Forces (INF) rearmament area. The SALT II Treaty
banned new missile programs (a new missile defined as one with any key parameter 5% better than
in currently deployed missiles), so both sides were
forced to limit their new strategic missile types development although US preserved their most essential programs like Trident and cruise missiles, which
President Carter wished to use as his main defensive weapon as they were too slow to have first strike
capability. In return, the USSR could exclusively
retain 308 of its so-called "heavy ICBM" launchers
of the SS-18 type.
An agreement to limit strategic launchers was
reached in Vienna on June 18, 1979, and was signed
by Leonid Brezhnev and President of the United
States Jimmy Carter. In response to the refusal of
the U.S. Congress to ratify the treaty, a young member of the Senate Foreign Relations Committee,
Senator Joseph Biden of Delaware, met with the
Soviet Foreign Minister Andrey Gromyko, "educated him about American concerns and interests"
and secured several changes that neither the U.S.
Secretary of State nor President Jimmy Carter could
obtain.
Six months after the signing, the Soviet Union deployed troops to Afghanistan, and in September of
the same year senators including Henry M. Jackson
and Frank Church discovered the so-called "Soviet
brigade" on Cuba. In light of these developments,
the treaty was never formally ratified by the United
States Senate. Its terms were, nonetheless, honored
by both sides until 1986 when the Reagan Administration withdrew from SALT II after accusing the
Soviets of violating the pact.
Subsequent discussions took place under the Strategic Arms Reduction Treaty (START) and the Comprehensive Test Ban Treaty.
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Main Feature
Experts said exposure to toxic chemicals from ewaste - including lead, cadmium, mercury, chromium and polybrominated biphenyls - can damage the brain and nervous system, affect the kidneys and liver, and cause birth defects.
The report was launched in Indonesias resort island of Bali. It used data from 11 developing countries to estimate current and future e-waste generation from discarded computers, printers, mobile phones, pagers, cameras, music players, refrigerators, toys, televisions and other items.
China produces an estimated 2.3 million tons of ewaste annually, and though the country has banned
e-waste imports, it remains a major dumping
ground for waste from developed countries, the
report said.
The UN research predicts that in South Africa and
China, e-waste from old computers may jump by
200 to 400 per cent from 2007 levels and by 500
per cent in India.
E-waste from mobile phones in the same period is
forecast to rise seven times in China, and 18 times
in India.
According to the report, over 1 billion mobile
phones were sold in 2007 worldwide, up from 896
million in 2006.
The report said most e-waste in China was improperly handled, with much of it incinerated by backyard recyclers to recover valuable metals like gold.
Jim Pucket of the Basel Action Network, a nongovernmental organization fighting the international trade in toxic wastes, said massive amounts
of discarded devices had been exported to China
for years.
But China is not alone in facing the serious e-waste
problem. India, Brazil, Mexico and others may also
face rising environmental damage and health problems if e-waste recycling is left to the vagaries of
the informal sector.
Report urged governments to establish e-waste
management centres, building on existing organi-
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Problems
Rapid technology change, low initial cost, and
planned obsolescence have resulted in a fast-growing surplus of electronic waste around the globe.
Dave Kruch, CEO of Cash For Laptops, regards
electronic waste as a "rapidly expanding" issue.
Technical solutions are available, but in most cases
a legal framework, a collection system, logistics,
and other services need to be implemented before
a technical solution can be applied. An estimated
50 million tonnes of E-waste is produced each year.
The USA discards 30 million computers each year
and 100 million phones are disposed of in Europe
each year.
In the United States, an estimated 70% of heavy
metals in landfills comes from discarded electronics, while electronic waste represents only 2% of
America's trash in landfills. The EPA states that
unwanted electronics totaled 2 million tons in 2005.
Discarded electronics represented 5 to 6 times as
much weight as recycled electronics.
The Consumer Electronics Association says that
U.S. households spend an average of $1,400 annually on an average of 24 electronic items, leading
to speculations of millions of tons of valuable metals sitting in desk drawers. The U.S. National Safety
Council estimates that 75% of all personal computers ever sold are now gathering dust as surplus
electronics. While some recycle, 7% of cellphone
owners still throw away their old cellphones.
Surplus electronics have extremely high cost differentials. A single repairable laptop can be worth
hundreds of dollars, while an imploded cathode
ray tube (CRT) is extremely difficult and expensive to recycle. This has created a difficult freemarket economy. Large quantities of used electronics are typically sold to countries with very high
repair capability and high raw material demand,
which can result in high accumulations of residue
in poor areas without strong environmental laws.
Trade in electronic waste is controlled by the Basel
Convention. The Basel Convention Parties have
considered the question of whether exports of hazardous used electronic equipment for repair or refurbishment are considered as Basel Convention
hazardous wastes, subject to import and export
controls under that Convention. In the Guidance
document produced on that subject, that question
was left up to the Parties, however in the working
group all of the Parties present believed that when
material is untested, or contains hazardous parts
that would need to be replaced as part of the repair process, then the Convention did apply.
Like virgin material mining and extraction, recycling of materials from electronic scrap has raised
concerns over toxicity and carcinogenicity of some
of its substances and processes. Toxic substances
in electronic waste may include lead, mercury, and
cadmium. Carcinogenic substances in electronic
waste may include polychlorinated biphenyls
(PCBs). Capacitors, transformers, and wires insulated with or components coated with polyvinyl
chloride (PVC), manufactured before 1977, often
contain dangerous amounts of PCBs.
Up to 38 separate chemical elements are incorporated into electronic waste items. Many of the plastics used in electronic equipment contain flame
retardants. These are generally halogens added to
the plastic resin, making the plastics difficult to
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recycle. Due to the flame retardants being additives, they easily leach off the material in hot
weather, which is a problem because when disposed of, electronic waste is generally left outside.
The flame retardants leach into the soil and recorded levels were 93 times higher than soil with
no contact with electronic waste.[12] The
unsustainability of discarding electronics and computer technology is another reason commending
the need to recycle or to reuse electronic waste.
When materials cannot or will not be reused, conventional recycling or disposal via landfill often
follow. Standards for both approaches vary widely
by jurisdiction, whether in developed or developing countries. The complexity of the various items
to be disposed of, the cost of environmentally approved recycling systems, and the need for concerned and concerted action to collect and systematically process equipment are challenges. One
study indicates that two thirds of executives are
unaware of fines related to environmental regulations.
Hotspots
Increased regulation of electronic waste and concern over the environmental harm, which can result from toxic electronic waste, has raised disposal
costs. The regulation creates an economic disincentive to remove residues prior to export. In extreme cases, brokers and others calling themselves
recyclers export unscreened electronic waste to
developing countries, avoiding the expense of removing items like bad cathode ray tubes, the processing of which is expensive and difficult.
Defenders of the trade in used electronics say that
extraction of metals from virgin mining has also
been shifted to developing countries. Hard-rock
mining of copper, silver, gold and other materials
extracted from electronics is considered far more
environmentally damaging than the recycling of
those materials. They also state that repair and reuse of computers and televisions has become a "lost
art" in wealthier nations, and that refurbishing has
traditionally been a path to development. South
Korea, Taiwan, and southern China all excelled in
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Recycling
Today the electronic waste recycling business is in
all areas of the developed world a large and rapidly consolidating business. Electronic waste processing systems have matured in recent years, following increased regulatory, public, and commercial scrutiny, and a commensurate increase in entrepreneurial interest. Part of this evolution has
involved greater diversion of electronic waste from
energy-intensive down cycling processes (e.g., con-
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Winners
of
Nobel
Prize
2010
speech as well as
freedom of assembly. This year there
were a record number of nomina6ons
for the Nobel Peace
Prize at a staggering
two hundred and
thirty seven. Last
year President Barrack Obama won a
Nobel Peace Prize
for his extraordinary eorts in
strengthening interna6onal diplomacy.
The Nobel Peace
Prize awarded to Liu
Xiaobo is the 'h
Featured Article
Featured Article
WWW.UPSCPORTAL.COM
. Vol. - 19
Featured Article
The 16th SAARC (South Asia association of Regional Cooperation) summit concluded in the capital of Bhutan. The theme of the
summit was Towards a green and happy south Asia. South Asia
is the home of 1.5 billion people, which comprise eight nations,
namely India, Pakistan, Nepal, Bhutan, Maldives, Sri Lanka and
Afghanistan. This is the silver jubilee year of SAARC. According
to a World Bank report the 2/3rd people of south Asia live on less then 2 dollar per day. Certainly, it is far
behind from the other regional organizations when compared about the progress and development of the
region.
In the summit, the leaders of member countries rightly raised this issue. First, our Prime Minister, Man
Mohan Singh called the 25-year long journey of SAARC, a glass half empty then Bhutans PM Jigmi Y
Thinley said that SAARC is losing its focus from core issues, such as poverty, food security etc. In one sense
these statements are true, as there are many bilateral issues between member countries which used to
affect the multilateral efforts and initiatives of the developments, e.g. India-Pakistan relations have always
overshadowed the SAARC summits and this time also the summit started with the huge speculations of
Indo-Pak meets at the sidelines of the summit. Though, according to SAARC charter, bilateral issues
cannot be raised on its forum, still the mere possibilities of Indo-Pak high level meet used to occupy a lot
of space of the summits unofficial or official agenda. This fact is clear through the comment of Mohammad
Nasheed, president of Maldives, he said, the summit will lead to a greater dialogue between India and
Pakistan. The state heads of Bangladesh, Sri Lanka and Bhutan also expressed the similar views. President
Nasheed also asked for the more focus on important issues which are related to SAARC nations and their
problems which used to be overshadowed by the Indo-Pak stern relation.
One more issue, which has maintained gap between members, is the India factor. India has geographically, economically and politically a big brother image among the rest member countries of SAARC. All
the nations of south Asia are connected geographically with India (Afghanistan through POK). Only
Maldives, the island nation has no land connectivity with India. This big brother image has always raised
negative thoughts and fears among the other members, the political parties have frequently used the antiIndia card to raise the public emotions, e.g. in Nepal, Bangladesh, Sri Lanka and off course Pakistan. This
insecurity has provided a suitable opportunity for big powers to intervene in south Asia. Besides, ethnic,
language, border and water disputes between the members, it has also created set-backs among bilateral
and multilateral relations.
However, some significant events took place in Thimphu. The landmark decision was the announcement
of a fund by Indian PM, to meet with the challenges of climate change and to cater for the needs of
effective adaptation and capacity building of small nations. Though no proper action plan for climate
change was drafted, still this is an important initiative as all the nations of south Asia are facing serious
threats of global warming, such as, glacial melting, frequent cyclones, floods and droughts.
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The next important event of summit was the IndoPak meeting on 29th April, between Prime Minister Man Mohan Singh and his counter part Yusuf
Raza Gilani. It was the first meeting of both leaders after the one in Sharm- el Sheikh in July 2009.
In the meeting, India insisted on Pak to take some
credential action against the 26/11 perpetrates, LeT
and Hafeez Saeed, the mastermind of the Mumbai
attack. India refused to start the conventional form
of composite dialogue that is based on eight issues.
Pakistans emphasis remained on delinking of terror from talks and an immediate return of composite dialogue. However, India rejected this offer
and no joint statement took place, but the positive
side of talks was that both sides agreed to keep the
dialogue process open and decided to meet as soon
as possible at Foreign Ministers level and at foreign secretary level.
Besides above developments, the 16th SAARC
summit lacked behind on many issues. No progress
took place on SAFTA (south Asia free trade agreement), nor the leaders of south Asia tried to find
out any regional solution of Afghan problem.
Though in a joint statement released by prime
Minister Man Mohan Singh and President Karzai,
Dr. Singh supported an Afghan-led , Afghanowned rebuilding of Afghanistan, based on the
principles of national sovereignty, independence
and non interference. The rising interference of
superpowers such as USA and China in south Asia
too did not become an issue of concern for the leaders of subcontinent. The leaders of SAARC though
felt that bilateral issues are creating hurdles in the
progress of the region and its 1.5 billion people but
no concrete step has been taken to overcome those
issues.
However, the summit remarked the need of dialogue and conversation among the members to resolve their differences. After all, it gives an open
forum to its members to exchange their views and
visions regarding south Asias present, future and
its potential role in international political and economic structure.
To promote active collaboration and mutual assistance in the economic, social, cultural,
technical and scientific fields;
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SAARC Secretariat
The SAARC Secretariat was established in
Kathmandu on 16 January 1987 and was inaugurated by Late King Birendra Bir Bikram Shah of
Nepal.
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The least developed nations in South Asia consisting of Nepal, Bhutan, Bangladesh and Maldives
have an additional three years to reduce tariffs to
zero. India and Pakistan have signed but not ratified the treaty.
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On the overall Sino India relations, he said the economic content of the relationship has increased significantly, with China today being Indias largest
trading partner.
Mr. Zuma said that IBSA has a natural dialogue forum and he has great confidence in its future. He
said the decision to develop the satellite jointly was
symbolic of the fact that the forum has entered a
new phase.
He pointed out that the member countries had common positions on the Doha round of WTO talks.
He pressed for early conclusions of the Doha round
of trade talks saying it cant be put indefinitely.
Mr. Zuma said the IBSA was rapidly emerging as
an important forum for engagement. But we are
yet to fully explore the full potential of this forum,
he said.
The South African president, whose country will
host the next IBSA summit, said there was an opportunity for expanding cooperation in science and
technology and reinforcing shared developmental
objectives.
Noting that all the three IBSA countries were influential in their own regions, Mr. Zuma said, We
are in a position to make contributions to a global
debate. This became clear at the Copenhagen Summit on climate change when IBSA and China played
a key role in reaching an agreement.
He said the four countries were able to reflect the
interest of developing nations at the climate meet.
He said the IBSA countries were key for reform of
global bodies like UN to make them more democratic and more responsive to the poor.
Mr. Zuma said the three countries needed more coordination on climate change to ensure legally binding agreement on the issue in the next summit in
Mexico next year.
BRIC, IBSA nations not keen on Iran sanctions
As the United States and its western allies press ahead
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with efforts to impose tough penalties on Iran, leaders and officials from two major international
groupings BRIC and IBSA meeting in Brasilia this
week took a contrary view, agreeing that new sanctions would not help resolve the nuclear issue.
On the sidelines, Indias national security adviser,
Shiv Shankar Menon, took part in a meeting of BRIC
senior security officials alongside Nikolai Patrushev
of Russia and Dai Binguuo of China. Earlier in the
week, Mr. Menon also met with his U.S. counterpart, James L. Jones, who provided a detailed description of Washingtons current approach to the
Iran issue.
Giving an account of the intra-BRIC exchanges on
Iran, a senior Indian official said, All of us agreed
that we dont think sanctions will help solve the
current problems with Iran. In addition, there was
agreement that dialogue and diplomacy were essential and that the central role of the International
Atomic Energy Agency in settling the Iran nuclear
docket had to be re-established.
The official said the BRIC nations agreed Iran had
the right to nuclear energy but that it also has an
obligation to set at rest international fears about the
nature of its nuclear programme.
Though the BRIC summit statement did not touch
on Iran, the IBSA communiqu said the three leaders reiterated the need for a peaceful and diplomatic
solution of the issue.
Indian officials said President Lula would be going
to Iran next month and that his visit had added significance since Brazil was a non-permanent member of the Security Council through 2011. Another
factor which might have a bearing on sanctions was
that Lebanon whose government has tended not to
support the U.S. on Iran would assume the rotating
chair of the UNSC in May.
India buys a significant amount of crude oil from
Iran. Until 2009, Indian companies like Reliance also
sold refined products to Iran but have withdrawn
from the market as American pressure on banks
An analysis
Summits of IBSA and BRIC nations, India and Brazil were the lucky two who had overlapping membership in both forums. But South Africa, which is
only part of the former, would very much like BRIC
to become BRICS, while China, which is part of the
latter as well as of the climate change ginger group
of BASIC with India, Brazil and South Africa
would not be averse to IBSA becoming CHIBSA.
Equation Reversed
Last year, when the Russian hosts at Ekaterinburg
held back-to-back summits of BRIC and the Shanghai Cooperation Organisation, the equation was reversed. Russia and China belong to both groupings,
while India, which has mere observer status in the
SCO, agreed to have Prime Minister Manmohan
Singh attend that summit only after receiving assurances that he would have full speaking rights and
would not have to leave the room when the real
members met.
On the sidelines of the April 15 IBSA and BRIC
meets in Brasilia, President Hu Jintao of China held
a bilateral meeting with his Brazilian counterpart,
Lula da Silva, and the two countries signed a number of agreements. One of these was an 'action plan',
and buried deep within it was this proposal: The
two sides will discuss conducting long-term research
on the potential for furthering the development of
trade relations between IBSA and China.
Not Enthusiastic
Some in Brazil have quietly been suggesting
Beijing's inclusion in IBSA -- China is, after all, its
largest trading partner -- but India and, to a lesser
extent, South Africa, which sees IBSA as a great vehicle for itself on the world stage -- are not enthusiastic.
,
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Problematic
ceuticals as well as agriculture. In an article written on the eve of the BRIC summit, President Dmitri
Medvedev spoke of the four countries collaborating with each other in nuclear technology, space
technology, aircraft manufacturing, nanotechnology
and other fields. But some in the Indian establishment remain sceptical of doing too much with BRIC,
fearing a backlash from the U.S.
Asked about the expansion of BRIC, the Prime Minister said this was an idea of Goldman Sachs. We
are now trying to give it some shape, flesh it out.
Let us see.
Like IBSA, the expansion of BRIC is problematic
because the majority of its members fear the dilution of the forum's core competence: fast rising
economies with a growing footprint in the global
economy and system. BRIC today accounts for a
little under a quarter of world output. The South
African economy is not yet in that league.
Other countries that have expressed an interest in
joining BRIC are Mexico, Indonesia and Turkey. The
Turks are also apparently interested in IBSA.
What makes BRIC a good fit today is that the four
countries have complementary factor endowments
and national skills, a senior Indian official told The
Hindu. If China has solid manufacturing and huge
financial clout, Russia has energy and advanced technology in certain fields, while Brazil is an agricultural superpower with strong manufacturing and
India has a comparative advantage in IT, pharma-
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We underline the importance of maintaining relative stability of major reserve currencies and
sustainability of fiscal policies in order to achieve a
strong, long-term balanced economic growth.
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Development
Agriculture
International Trade
We stress the importance of the multilateral trading system, embodied in the World Trade Organization, for providing an open, stable, equitable and
non discriminatory environment for international
trade. In this connection, we commit ourselves and
urge all states to resist all forms of trade protectionism and fight disguised restrictions on trade. We
concur in the need for a comprehensive and balanced
outcome of the Doha Round of multilateral trade
talks, in a manner that fulfills its mandate as a "development round", based on the progress already
made, including with regard to modalities. We take
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Climate Change
Energy
We recognize that energy is an essential resource
for improving the standard of living of our peoples
and that access to energy is of paramount importance to economic growth with equity and social
inclusion. We will aim to develop cleaner, more
affordable and sustainable energy systems, to promote access to energy and energy efficient technologies and practices in all sectors. We will aim to diversify our energy mix by increasing, where appropriate, the contribution of renewable energy sources,
and will encourage the cleaner, more efficient use
of fossil fuels and other fuels. In this regard, we reiterate our support to the international cooperation
in the field of energy efficiency.
We recognize the potential of new, emerging, and
environmentally friendly technologies for diversifying energy mix and the creation of jobs. In this
regard we will encourage, as appropriate, the sustainable development, production and use of
biofuels. In accordance with national priorities, we
will work together to facilitate the use of renewable energy, through international cooperation and
the sharing of experiences on renewable energy, including biofuels technologies and policies.
We believe that BRIC member countries can cooperate in training, R&D, Consultancy services and
technology transfer, in the energy sector.
Terrorism
We condemn terrorist acts in all forms and manifestations. We note that the fight against international terrorism must be undertaken with due respect to the UN Charter, existing international conventions and protocols, the UN General Assembly
and Security Council resolutions relating to international terrorism, and that the prevention of terrorist acts is as important as the repression of terrorism and its financing. In this context, we urge
early conclusion of negotiations in the UN General
Assembly of the Comprehensive Convention on International Terrorism and its adoption by all Member States. Brazil and China express their sympathy
and solidarity with the people and Governments of
Russia and India which suffered from recent barbaric terrorist attacks. Terrorism cannot be justified by any reason.
Alliance of Civilizations
We affirm the importance of encouraging the dialogue among civilizations, cultures, religions and
peoples. In this respect, we support the Alliance of
,
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Haiti
We reaffirm our solidarity towards the Haitian
people, who have been struggling under dire circumstances since the earthquake of January 12th, and
reiterate our commitment to gather efforts with the
international community in order to help rebuilding the country, under the guidance of the Haitian
government, and according to the priorities established by the Action Plan for National Recovery and
Development of Haiti.
Cooperation
We welcome the following sectoral initiatives aimed at strengthening cooperation
among our countries:
a) the first Meeting of Ministers of Agriculture
and Agrarian Development;
b) the Meetings of Ministers of Finance and Governors of Central Banks;
c) the Meetings of High Representatives for Secu-
rity Issues;
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Caste Census
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. Vol. - 19
Featured Article
What is Census
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.
.
Featured Article
Na$onal Popula$on
Register
Census Process
ing ques6ons and lling up Census Forms. The informa6on collected about individuals is kept
absolutely conden6al. In fact
this informa6on is not accessible
even to Courts of law. A'er the
eld work is over the forms are
transported to data processing
centres located at 15 ci6es across
the country. The data processing
will be done using sophis6cated
so'ware called Intelligent Character Recogni6on So'ware (ICR).
This technology was pioneered
by India in Census 2001 has become the benchmark for Censuses all around the globe. This
involves the scanning of the Census Forms at high speed and extrac6ng the data automa6cally
using computer so'ware. This
revolu6onary technology has enabled the processing of the voluminous data in a very short 6me
and saving a huge amount of
manual labour and cost.
NPR Process
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. Vol. - 19
Featured Article
Featured Article
India.
According to the pragma6sts India cannot simply
assume modernity by ignoring caste. They see
caste as a form of social
stra6ca6on much like
class in Britain or race in
the U.S. The U.S. census
and job applica6ons have a voluntary disclosure segment requiring informa6on about the
individuals race. Comparing
caste with class and race appears
incorrect if one realises that unlike other forms of social stra6ca6ons, caste in India is allegedly
sanc6oned by the sacred scriptures. Even though the scriptural
sanc6ty of caste is open to debate many Indians cite the
Manusmri6 and Bhagavad Gita to
support arguments in favour of
caste. It is much simpler to address dieren6a6ons based on
skin colour or na6onality than
stra6ca6ons perceived to be ordained by religious texts.
Caste based social prac6ces
in India go beyond the more visible poli6cal and economic dimensions and these subtle aspects
are unlikely to be impacted by
the enumera6on of caste through
the census.
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. Vol. - 19
Commonwealth
Games
2010
By Dr. Divya
from Africa.
ve athletes and ocials.
Many na:ons are sending their Indias neighbours Pakistan and
Sri Lanka will send
largest
con:nTHESE INCLUDE
con:ngents of around
gents to a Com125 each. Australia,
m o n w e a l t h Australia (550)
Canada, England, New
Games outside England (525)
Zealand, Scotland and
their home na- Canada (400)
Wales
will keep their
:ons.
New Zealand (325)
record as the only naWith a 220- Malaysia (325)
:ons to par:cipate in
strong con:ngent, Scotland (300)
South Africa will Wales (240)
all edi:ons of the
be biggest team
Commonwealth
Vol. - 18
Vol. - 18
Article
Year
1978
1982
1986
1990
1994
1998
2002
2006
Venue
Edmonton
Disciplines
10
2154
Brisbane
Edinburgh
10
10
Auckland
14
Kuala Lumpur
15
Victoria
Manchester
Melbourne
10
17
16
Competition Venues
Construc:on of the following
new venues is underway in full
swing and progressing sa:sfactorily: Badminton and Squash (Siri
Fort Sports Complex); Netball
(Thyagaraj Sports Complex);
Rugby 7s (Delhi University); Table
Tennis (Yamuna Sports Complex);
Weightli'ing and Wrestling (Indira Gandhi Sports Complex);
Shoo:ng (Dr Karni Singh Shoo:ng
Range);Archery Preliminaries (Yamuna Sports Complex); and Lawn
Bowls (Jawaharlal Nehru Sports
1978
2123
2826
3671
5065
3679*
5766
Complex).
Renova:on of the following
exis:ng venues will be completed
on schedule: Athle:cs (Jawaharlal Nehru Stadium); Boxing (Talkatora Indoor Stadium); Gymnas:cs
(Indira Gandhi Stadium); Hockey
(Major Dhyan Chand Na:onal
Stadium); Swimming (Dr S.P.
Mukherjee Aqua:cs Complex);
and Tennis (R.K. Khanna Tennis
Stadium).
These are the following venues:
1. Jawaharlal Nehru Sports
Complex
2. Thyagaraj Sports Complex
3. Indira Gandhi Sports Complex
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Article
The logo of the XIX Commonwealth Games 2010 Delhi is inspired by the Chakra, the na:onal
symbol of freedom, unity and
power. Spiralling upwards, it depicts the growth of India into a
proud, vibrant na:on. Her billion
Vol. - 18
Commonwealth Games
Article
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Article
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History
A spor:ng compe::on bringing
together the members of the
Bri:sh Empire was rst proposed
by the Reverend Astley Cooper in
1891 when he wrote an ar:cle in
The Times sugges:ng a "Pan-Britannic-Pan-Anglican Contest and
Fes:val every four years as a
means of increasing the goodwill
and good understanding of the
Bri:sh Empire".
In 1911,
the Fes:val of
the Empire was
held in come
London to celebrate the corona:on of King
George V. As
part of the fes:val an Inter-Empire Champi
onships
was
held in which
teams from Australia, Canada,
South Africa and
the United Kingdom competed
in events such
as
boxing,
wrestling, swimming and athletics.
In 1928,
Melville Marks
Robinson
of
Canada
was
asked to organise the rst ever
Bri:sh Empire Games. These
were held in Hamilton, Canada
two years later.
The rst Games were held in
Vol. - 18
Vol. - 18
Editions
The rst edi:on of the event was
the 1930 Bri:sh Empire Games
and eleven na:ons took part. The
quadrennial schedule of the
games was interrupted by World
War II and the 1942 Games (set
to be held in Montreal, Canada)
were abandoned.
The games were con:nued in
1950 and underwent a name
change four years later with the
rst Bri:sh Empire and Commonwealth Games in 1954. Over 1000
athletes par:cipated in the 1958
Games as over thirty teams took
part for the rst :me. The event
was briey known as the Bri:sh
Commonwealth Games for the
1970 and 1974 edi:ons and the
1978 Games, held in Edmonton,
Article
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REMEDIES
CURRENT AFFAIRS
Designed for IAS
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organizations
and
civil
society
organizations, and more than 1200
members of the media. The meetings
resulted in the adoption of 19 COP
decisions and 17 CMP decisions and the
approval of a number of conclusions by
the subsidiary bodies. These outcomes
cover a wide range of topics, notably the
establishment of a second commitment
period under the Kyoto Protocol, a
decision on long-term cooperative
action under the Convention, the launch
of a new process towards an agreed
outcome with legal force applicable to
all parties to the Convention, and the
operationalization of the Green Climate
Fund.
The negotiations were driven by a
series of interdependent linkagessome
constructed to drive the negotiations
forward, some integral to the field of
climate change politics, and some based
decisively on an understanding that 21st
century global challenges need global
solutions. This brief analysis examines
some of the defining interdependencies
that help tell the story of the Durban
Climate Change Conference and the
launch of a new phase of climate change
negotiations. At the outset, expectations
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Dr. Sachchidanand
Fears of a sovereign debt crisis developed In early 2010 concerning some countries in Europe including: Greece, Ireland, Spain,
and Portugal. This led to a crisis of confidence as well as the widening of bond yield spreads and risk insurance on credit default
swaps between these countries and other EU members, most importantly Germany.
Concern about rising government deficits and debt levels across the globe together with a wave of downgrading of European Government debt has created alarm on financial markets. The debt crisis has been
mostly centred on recent events in Greece, where there is concern about the rising cost of financing
government debt. On 2 May 2010, the Eurozone countries and the International Monetary Fund agreed to
a 110 billion loan for Greece, conditional on the implementation of harsh Greek austerity measures. On
9 May 2010, Europe's Finance Ministers approved a comprehensive rescue package worth almost a trillion
dollars aimed at ensuring financial stability across Europe.
Stimulates
The Greek economy was one of the fastest growing in the eurozone during the 2000s; from 2000 to 2007
it grew at an annual rate of 4.2% as foreign capital flooded the country. A strong economy and falling bond
yields allowed the government of Greece to run large structural deficits. According to an editorial published by the Greek newspaper Kathimerini, large public deficits are one of the features that have marked
the Greek social model since the restoration of democracy in 1974.
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Despite the crisis, Greek government bond auctions have all been over-subscribed in 2010 (as of
26 January). According to the Financial Times on
25 January 2010, "Investors placed about 20bn
($28bn, 17bn) in orders for the five-year, fixedrate bond, four times more than the (Greek) government had reckoned on." In March, again according to the Financial Times, "Athens sold 5bn
(4.5bn) in 10-year bonds and received orders for
three times that amount."
Downgrading of Debt
On 27 April 2010, the Greek debt rating was decreased to 'junk' status by Standard & Poor's amidst
fears of default by the Greek government. Yields
on Greek government two-year bonds rose to
15.3% following the downgrading. Some analysts
question Greece's ability to refinance its debt. Standard & Poor's estimates that in the event of default investors would lose 3050% of their money.
Stock markets worldwide declined in response to
this announcement.
Following downgradings by Fitch, Moody's and
S&P, Greek bond yields rose in 2010, both in absolute terms and relative to German government
bonds. Yields have risen, particularly in the wake
of successive ratings downgrading. According to
the Wall Street Journal "with only a handful of
bonds changing hands, the meaning of the bond
move isn't so clear." As of 6 May 2010, Greek 10year bonds were trading at an effective yield of
11.31%.
On 3 May 2010, the European Central Bank suspended its minimum threshold for Greek debt "until further notice", meaning the bonds will remain
eligible as collateral even with junk status. The
decision will guarantee Greek banks' access to
cheap central bank funding, and analysts said it
should also help increase Greek bonds' attractiveness to investors. Following the introduction of
these measures the yield on Greek 10-year bonds
fell to 8.5%, 550 basis points above German yields,
down from 800 basis points earlier.
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These include:
Public Sector limit introduced of 1,000 to biannual bonus, abolished entirely for those earning
over 3,000 a month.
Cuts of 8% on public sector allowances and
3% pay cut for DEKO (public sector utilities) pay
cheques.
Freeze on increases in public sector wages for
three years.
Limit of 800 to 13th and 14th month pension
installment. Abolished for those pensioners receiving over 2,500 a month.
Return of special tax (LAFKA) on high pensions.
Changes planned to the laws governing layoffs and overtime pay.
Extraordinary taxes on company profits.
Danger of Default
Without a bailout agreement, there was a possibility that Greece would have been forced to default on some of its debt. The premiums on Greek
debt had risen to a level that reflected a high chance
of a default or restructuring. One analyst gave a 80
to 90% chance of a default or restructuring. Martin Feldstein called a Greek default "inevitable." A
default would most likely have taken the form of a
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Objections to Proposed
Policies
The crisis is seen as a justification for imposing fiscal austerity on Greece in exchange for European
funding which would lower borrowing costs for
the Greek government. The negative impact of
tighter fiscal policy could offset the positive impact of lower borrowing costs and social disruption could have a significantly negative impact on
investment and growth in the longer term. Joseph
Stiglitz has also criticised the EU for being too slow
to help Greece, insufficiently supportive of the new
government, lacking the will power to set up sufficient "solidarity and stabilisation framework" to
support countries experiencing economic difficulty,
and too deferential to bond rating agencies.
An alternative to the bailout agreement, would
have been Greece leaving the Eurozone. Wilhelm
Hankel, professor emeritus of economics at the
University of Frankfurt am Main suggested in an
article published in the Financial Times that the
preferred solution to the Greek bond 'crisis' is a
Greek exit from the euro followed by a devaluation of the currency. Fiscal austerity or a euro exit
is the alternative to accepting differentiated government bond yields within the Euro Area. If
Greece remains in the euro while accepting higher
bond yields, reflecting its high government deficit, then high interest rates would dampen demand,
raise savings and slow the economy. An improved
trade performance and less reliance on foreign capital would result.
EU Emergency Measures
On 9 May 2010, Europe's Finance Ministers approved, in an emergency meeting, a rescue package that could provide 750 billion Euros for crisis
aid aimed at ensuring financial stability across Europe.
The package announced has three components:
The first part expands a 60 billion (US$70 billion)
Eurogroup's stabilisation fund (European Financial
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Long-Term Solutions
European Union leaders have made two major proposals for ensuring fiscal stability in the long term.
The first proposal is the creation of a common fund
responsible for bailing out, with strict conditions,
an EU member country. This reactive tool is sometimes dubbed as the European Monetary Fund by
the media. The second is a single authority responsible for tax policy oversight and government
spending coordination of EU member countries.
This preventive tool is dubbed the European Treasury. The monetary fund would be supported by
EU member governments, and the treasury would
be supported by the European Commission.
However, strong European Commission oversight
in the fields of taxation and budgetary policy and
the enforcement mechanisms that go with it have
been described as infringements on the sovereignty
of eurozone member states and are opposed by key
EU nations such as France and Italy, which could
jeopardise the establishment of a European Treasury.
Some think-tanks such as the CEE Council have
argued that the predicament some EU countries
find themselves in is the result of a decade of debtfueled Keynesian policies pursued by local policy
makers and complacent EU central bankers, and
have recommended the imposition of a battery of
corrective policies to control public debt. Some
senior German policy makers went as far as to say
that emergency bailouts should bring harsh penalties to EU aid recipients such as Greece.
Others argue that an abrupt return to "nonKeynesian" financial policies is not a viable solution and predict the deflationary policies now being imposed on countries such as Greece and Spain
might prolong and deepen their recessions. The
Economist has suggested that ultimately the Greek
"social contract," which involves "buying" social
peace through public sector jobs, pensions, and
other social benefits, will have to be changed to
one predicated more on price stability and government restraint if the euro is to survive. As
Greece can no longer devalue its way out of economic difficulties it will have to more tightly control spending than it has since the inception of the
Third Hellenic Republic.
Regardless of the corrective measures chosen to
solve the current predicament, as long as cross border capital flows remain unregulated in the Euro
Area, asset bubbles and current account imbalances
are likely to continue. For example, a country that
runs a large current account or trade deficit (i.e., it
imports more than it exports) must also be a net
importer of capital; this is a mathematical identity
called the balance of payments. In other words, a
country that imports more than it exports must
also borrow to pay for those imports. Conversely,
Germany's large trade surplus (net export position)
means that it must also be a net exporter of capital, lending money to other countries to allow them
to buy German goods. The 2009 trade deficits for
Spain, Greece, and Portugal were estimated to be
$69.5 billion, $34.4B and $18.6B, respectively
($122.5B total), while Germany's trade surplus was
$109.7B. A similar imbalance exists in the U.S.,
which runs a large trade deficit (net import position) and therefore is a net borrower of capital from
abroad. Ben Bernanke warned of the risks of such
imbalances in 2005, arguing that a "savings glut"
in one country with a trade surplus can drive capital into other countries with trade deficits, artificially lowering interest rates and creating asset
bubbles.
A country with a large trade surplus would generally see the value of its currency appreciate relative to other currencies, which would reduce the
imbalance as the relative price of its exports increases. This currency appreciation occurs as the
importing country sells its currency to buy the
exporting country's currency used to purchase the
goods. However, many of the countries involved
in the crisis are on the Euro, so this is not an available solution at present.
Alternatively, trade imbalances might be addressed
by changing consumption and savings habits. For
example, if a country's citizens saved more instead
of consuming imports, this would reduce its trade
deficit.
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FDI
in
Retail
To be or Not To be..
The Union cabinet on 24 November
2011 approved 51 per cent foreign
direct investment (FDI) in multibrand retail. The Cabinet also decided
to raise the cap on foreign investment
in single-brand retailing to 100 per
cent from 51 per cent. An estimated
Rs 30-lakh-crore retail sector was
thus opened to foreign investors by
clearing a bill that allows 51 per cent
investment in multi-brand retail.The
decision being perceived as gamechanger for the estimated USD 590
billion (Rs 29.50 lakh crore) retail
market was taken at the meeting of
the Cabinet presided over by Prime
Minister Manmohan Singh.
India currently allows 51 percent foreign investment in single-brand retailers and 100 percent for wholesale operations but no FDI in multi-brand
retail.
The major provisions for FDI investment include that the minimum in-
vestment will have to be $100 million. Retail stores will only be allowed
in cities with more than one million
people. Also it will be mandatory for
retailers to source a minimum 30 per
cent of the value of manufactured
goods, barring food products, from
small and medium enterprises. Investment up to 50 per cent will have to
be in storage and back-end infrastructure. India being a signatory to World
Trade Organisations General Agreement on Trade in Services, which include wholesale and retailing services, had to open up the retail trade
sector to foreign investment. There
were initial reservations towards
opening up of retail sector arising
from fear of job losses, procurement
from international market, competition and loss of entrepreneurial opportunities. FDI in cash and carry or
wholesale trade, was allowed way
back in 1997 during the United Front
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Positive Aspects
FDI can be a powerful catalyst to spur
competition in the retail industry, due
to the current scenario of low competition and poor productivity. The
policy of single-brand retail was
adopted to allow Indian consumers
access to foreign brands. Since Indians spend a lot of money shopping
abroad, this policy enables them to
spend the same money on the same
goods in India. FDI in single-brand
retailing was permitted in 2006, up
to 51 per cent of ownership. Between
then and May 2010, a total of 94 proposals have been received. Of these,
57 proposals have been approved.
An FDI inflow of US$196.46 million
under the category of single brand
retailing was received between April
2006 and September 2010, comprising 0.16 per cent of the total FDI inflows during the period. Retail stocks
rose by as much as 5%. Shares of
Pantaloon Retail (India) Ltd ended
4.84% up at Rs 441 on the Bombay
Stock Exchange. Shares of Shoppers
Stop Ltd rose 2.02% and Trent Ltd,
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Concerns
Conclusion
Conclusively we can say that FDI in
retail has the both positive as well as
negative aspects of it ,but what we
should consider before jumping on
any conclusion that fears of small
shopkeepers getting displaced are
vastly exaggerated. When domestic
majors were allowed to invest in retail, both supermarket chains and
neighbourhood pop-and-mom stores
coexisted. If anything, the entry of
retail big boys is likely to hot up competition, giving consumers a better
deal, both in prices and choices. Mega
retail chains need to keep price points
low and attractive - that's the USP
of their business. This is done by
smart procurement and inventory
management: Good practices from
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which Indian retail can also learn. The argument that farmers will suffer once global retail has developed a virtual
monopoly is also weak. To begin with, it's very unlikely that global retail will ever become monopolies. Stores like
Wal-Mart or Tesco are by definition few, on the outskirts of cities (to keep real estate costs low), and can't intrude
into the territory of local kiranas. So, they can not eat up their share of pie. Secondly, it can't be anyone's case that
farmers are getting a good deal right now. The fact is that farmers barely subsist while middlemen take the cream.
Let's not get dreamy about this unequal relationship.
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